2015 Master Builders SA Builder Magazine Aug-Sep

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T H E O F F I C I A L J O U R N A L O F T H E M A S T E R B U I L D E R S A S S O C I A T I O N O F S O U T H A U S T R A L I A

also:

Kitchens and Bathrooms 33

Unlocking hidden capacity by closing the gaps 38

Erosion and sediment control on building sites: part 1 41

The Flying Doctor 46

Electra House Heritage RefurbishmentFull story page 43

2015

®

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2 SA BUILDER AUGUST - SEPTEMBER 2015

President: Richard Bryant

Deputy President: Peter Salveson

Vice Presidents: Mario Romaldi, Christopher Leopold

Past President: John Kennett

Treasurer: Mark Beatton

Chief Executive Offi cer: John Stokes

Councillors: Enzo Zito, Jock Merrigan, Nick Abley, Neil Mossop, Nathan O’Neill, Fred Pascale, Russell Bianco, Patrick Innes

Master Builders South Australia

PO Box 10014 Gouger St.

47 South Terrace, Adelaide, South Australia

Phone: (08) 8211 7466

Fax: (08) 8231 5240

Email: [email protected]

Executive Editor: Master Builders Association

Published by: Crowther Blayne Media Specialists

Phone: 1800 222 757

Email: [email protected]

Web: www.crowtherblayne.com.au

Business Development Manager: Trish Riley

Sales: Rose Delosreyes, Peter Shepherd, Brett Barfoot, Jenny Karalis, Ken Lane, Craig Flenley, Paul Baird

Editorial: Jessica McCabe and Samantha Regan

Graphic Design: Michelle Triana

Design Team: Byron Bailey, Andrew Crabb

Production: Yvonne Okseniuk

Printed by: Newstyle Printing

Forewords 4 CEO’s Report

6 President’s Report

Reports7 Master Builders News

Updates21 Training

22 Finance

25 Legal

27 Industrial Relations

29 Housing

32 WHS News

Features 33 Kitchens and Bathrooms

38 Building Software and Communications

41 Erosion and Sediment Control

43 Project Feature: Electra House

46 Project Feature: Flying Doctors

Our CoverElectra House heritage refurbishment by Schiavello Construction SASee pages 43 - 45 for the full story

SA BUILDER - AUGUST - SEPTEMBER 2015

Contents

• As construction professionals using non-compliant steel could be your worst decision. • Engineers, certifiers or suppliers have the responsibility and power to refuse the use of unidentifiable or non-compliant steel. • You manage the risk to human safety, reputation, livelihood and cost. Control your risks of non-compliance.• Reduce your liability through simple web downloads of ACRS Certificates at www.steelcertification.com• Check your steel products’ compliance to AS/NZS Standards and building codes.

3SA BUILDER AUGUST - SEPTEMBER 2015

Validate.(verb.) To make valid; substantiate; confirm. To give legal force to; legalize.

Can you take the risk that you might be using non-compliant steel?

Non-compliance is just not worth it. Get the facts.Demand the ACRS Certificates of Product Compliance.

Call ACRS on (02) 9965 7216, email [email protected] or visit www.steelcertification.com

ACRS – The Australasian Certification Authority for Reinforcing and Structural Steels Ltd ABN 40 096 692 545

ACRS rigorously certifies steel product compliance at over 150 locations in 15 countries and is accredited by JAS-ANZ For more detail, register for STEEL CERTIFICATION NEWS at www.steelcertification.com

• As construction professionals using non-compliant steel could be your worst decision. • Engineers, certifiers or suppliers have the responsibility and power to refuse the use of unidentifiable or non-compliant steel. • You manage the risk to human safety, reputation, livelihood and cost. Control your risks of non-compliance.• Reduce your liability through simple web downloads of ACRS Certificates at www.steelcertification.com• Check your steel products’ compliance to AS/NZS Standards and building codes.


JOHN STOKES, CEO, Master Builders SA

CEO’S Report

VET funding anti-competitiveMaster Builders SA calls on the State Government to reverse its anti-competitive funding model for VET training to preserve jobs and to protect against future skills shortages and increased costs.

The South Australian Government had a clear policy to make voca-tional education training (VET) more competitive by encouraging pri-vate registered training organisations (RTO) to enter into the market and compete with TAFE for the provision of training. The Govern-ment’s policy was to bring a commercial reality to the market to provide quality, responsive training at competitive rates that would encourage TAFE to become more commercial, competitive, efficient and all-round better performing.

The private RTOs responded as their share of funding increased through access to enrol greater numbers across a greater range of qualifications and areas of training. The training industry embraced the opportunity and many RTOs were quick to differentiate themselves from TAFE by being more receptive, nimble and by providing more current, up to date industry training.

Funding flowed through Productivity Places Program (PPP), Enter-prise Based PPP (EBPPP) and Skills for All and RTOs like Master Builders SA trained entry level and up-skilled current industry partic-ipants. The training funding secured the future skills of the industry and encouraged quality young people to enter the industry.

The current State Government distribution proposal of the Federal WorkReady funding reverts to a model grossly weighted toward TAFE SA resulting in an anti-competitive VET market.

The State Government has allocated 46,000 of the 51,000 of the subsidised training placements for 2015-16 to TAFE SA under the new WorkReady scheme. Previously the funding was divided approximately evenly with TAFE SA receiving 55 percent and private RTOs 45 per-cent. The policy effectively hands TAFE SA a monopoly with more than 90 percent of funded training places reversing the State Government’s competitively based policy for VET providers.

If the policy is not redressed Master Builders SA stands to lose all funding for Certificate III and Diploma courses after 1 July 2015. Funding for those students under a contract of training signed before 1 July is secure and will continue.

The consequences of the State Government’s new funding distri-bution model are manifold and detrimental on so many levels to the future development of the State and the well-being of the economy.

Private RTOs estimate TAFE SA training costs are more than double the costs of the private sector, which clearly indicates directing the lion’s share of the funding to TAFE SA is not an effective use of tax-payers’ dollars. This equates to less candidates being trained at higher costs when private RTOs could at least double the number of partici-pants for the same cost.

Industry based private RTOs who are far more flexible and respon-sive to industry needs and present options in scheduling, facilities, locations and student support, yet they are being shut out by the State Government’s funding model.

Less students being trained at higher costs will eventually lead to skills shortages, and in the building and construction industry, limited supply of skilled persons increases costs and reduces housing affordability.

The timing of the State Government’s release of their funding model left a truncated time for consultation as to the extent the new policy will cause major disruption to private RTOs businesses with the spectre of increased unemployment across the training industry. The lack of consultation prior to the announcement has also resulted in a discon-nect between the State Government and the Federal Government’s $65 million package for training in South Australia.

The State Government’s WorkReady funding model will have adverse effects on critical industries in both metropolitan and regional areas where many businesses’ long standing relationships with private providers will be disrupted with no guarantee TAFE SA will deliver.

The cynical view is the Government’s policy of delivering a near-monopoly to TAFE SA is to prop up an ailing uncompetitive TAFE SA and reduce its drain on the budget. However, at a time of growing unemployment and greatly reduced numbers of apprentices in training it is a time to concentrate on funding efficient, competitive and cost-effective training for the future.

2015

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RICHARD BRYANT, President, Master Builders SA

President’s Report

I’m over the rhetoric of how our State is languishing, lacking in confi-dence, experiencing the highest rate of unemployment of any state…blah….blah….blah.

It’s time to change the dialogue; it’s time to take action – all of us. I’m reminded of Gough Whitlam’s famous 1972 campaign slogan

‘it’s time’ and South Australia has never been more ready for some answers and some action to get us up and going. There is no need to continue defining the problems. We all know what’s not happening. It’s time for some action and there are things that we can do.

Private enterprise risks capital, creates jobs, creates wealth and opportunity and feeds funds into both State and Federal government coffers through tax on profits and activity. Governments don’t create jobs but can prime the pump through their policies to support, assist and provide a market environment to help business flourish.

Measures can be taken to assist, establish and sustain business and to incubate the innovative entrepreneurs who willingly enter commercial risk. The easiest of these actions are for governments to remove struc-tural impediments and barriers to encourage private enterprises and reduce the burden and costs.

To a degree, the concept of intergenerational equity needs to be put aside at times of economic duress - like the present - to ensure a strong sustainable future for the next generations by making available both commercial and residential government controlled land at reduced prices which will attract and stimulate the market. Affordable commer-cial land will attract national and international investment as we have a very stable government system, an underutilised, educated and skilled workforce, good climate and pristine environment plus vacant factories and commercial industrial buildings waiting to be re-commissioned.

Our State economy had a strong manufacturing base however increased costs of labour, compliance and regulator costs caused industry to move their bases. What we have left is a vacant commercial industrial infrastructure waiting to be utilised plus many businesses that relocated have realised that doing business in other countries pre-sents a whole new set of problems.

‘It’s time’ that South Australia became the start-up state and the Government backed the strategy with real and immediate concessions to attract and nurture new ventures.

Historically a strong housing market has coincided with strong eco-nomic growth in South Australia. Increased activity in the housing sector produces investment, employment opportunities and growth. Whilst it is a bit of the chicken and egg argument, housing activity and in particular housing affordability will stimulate the South Australian economy but the recent State Budget did little to stimulate the housing market.

The Federal Treasurer at the Council of Federal Financial Rela-tions has put housing affordability on the agenda for his Depart-ment and those of all State and Territory Treasurers with the emphasis on increasing supply by removing structural impediments.

‘It’s time’The intergenerational inequity is becoming apparent with younger gen-erations finding affordable housing extremely difficult. Home owner-ship and good housing has been an indicator of our community’s social and economic wellbeing.

Streamlining the over regulated, costly and inefficient supply process will start to remove some of the impediments and barriers to the aspi-rations of home ownership for many young people.

In the Development Approval process of Planning Approval and Building Rules Consent we once thought that private certification of Building Rules Consent was a pipedream. However, through lobbying it was achieved.

Why not private certification of Planning Approval?Private certification of Planning Approval delivered by accredited

planning professionals who are regulated by State Government will establish a competitive market where turnaround times for applications could be reduced and the process would not be subject to attitudinal bias. This will also provide much needed planing approval consistency.

The Federal Government’s Harper Review into competition high-lights under supply of housing and calls for delivery of greater State and Local Government productivity abolishing inefficiencies, excessive taxes, levies and delays in the supply process as imperative to increase housing affordability.

Tax reform is high on my agenda to stimulate the State’s economy and the Master Builders SA’s submission to the Treasurer on the State Tax Review is available to read in its entirety on our website. The Treasurer in the recent State Budget commenced the process but it was a missed opportunity as there was little in the Budget for housing industry. The staged reduction in sales tax on commercial property was welcomed but the three year staged reduction might delay property transactions as purchasers may wait for three years to avoid tax.

Reform of the State tax system needs to be augmented by the reduction of public expenditure in areas of inefficiency that include duplication of services across tiers of government, unnecessary State Government spending, reducing levels of public sector employment and the intrusion of statutory corporations and government entities into the private sector.

Taxpayers commit to the payment of taxes on the understanding that such commitment is necessary to fund essential expenditure. Unfortu-nately public expenditure was not considered in the tax review.

I also advocate that a segment of essential expenditure, vital to a return to prosperity is targeted investment in urban infrastructure to support development and growth of the State. For too long our State has operated on 1960s-era infrastructure.

I encourage Members to stop talking about the negatives and start identifying the opportunities and advocate for reform so that politi-cians understand that ‘it’s time’ for action as the community and the industry are demanding and willing to accept change.


Master Builder News

2015 State tax reform: Major tax reform package to make South Australia the best place to do businessThe State Government released its response to the State Tax Review with a major tax reform package that will see almost $670 million in tax cuts to businesses and the community over the next four years.

Treasurer Tom Koutsantonis said the changes represent the most comprehensive tax reforms in South Australia’s history.

“We are creating a State tax system that will attract business to South Australia and reduce costs to business in South Australia so they can invest, grow and employ more South Australians,” Mr Koutsantonis said.

“Our reforms will create jobs, maintain jobs and build the enter-prises that create careers.

“In total, almost $670 million in tax reductions will be provided over the next four years as part of our tax reform package, including ongoing reductions of more than $268 million per annum from 2018–19.

“Over the next decade these tax changes will return almost $2.5 bil-lion to businesses and the community.

“This is in addition to the State Government’s reforms to WorkCover, which will deliver a reduction in business costs in South Australia of about $180 million per annum.”Key elements of the State Government’s tax reform package are:• Abolishing share duty• Abolishing stamp duty on non-real property transfers• Abolishing stamp duty on non-residential property transfers

(phased from July 2016)• Abolishing stamp duty on genuine corporate reconstructions• Abolishing the Save the River Murray Levy• No new state taxes with the State Government ruling out a broad-

based land tax on the family home.

By July 2018, all business property transactions in South Australia will be tax free – the only jurisdiction in the country to implement such reform.

The State Government will abolish the Save the River Murray Levy from 1 July 2015, which will also provide annual savings to most house-holds and businesses of more than $40 and $182 respectively.

Mr Koutsantonis said protecting and creating jobs was the State Government’s main priority as the State faced an unprecedented number of threats.

“The slow-down in the Australian economy and collapse in com-modity prices, the withdrawal of Federal Government support for our auto-manufacturing and navy shipbuilding industries and the $1.4 bil-lion in Federal Government cuts to health and education over the next four years are all threatening South Australian jobs,” he said.

“That is why South Australia needs to forge its own future by creating a State tax system that rewards effort and removes barriers for busi-nesses wanting to invest, grow and create jobs.

“Through our State Tax Review, it became clear that transactional taxes like stamp duty on business property transfers present extra costs for those seeking to create new businesses or expand existing ones - often stopping investment from occurring.

“Stamp duty on non-residential property, for example, is generally considered to have a larger negative impact on investment decisions than any other State tax.

“By abolishing stamp duty on non-real and non-residential property transfers, we will remove a large barrier to business investment and expansion, encouraging economic growth and job creation.

“More than 6800 transfers of non-residential property will benefit each year from the changes.

“It will provide a lasting improvement to the South Australian economy and encourage the creation of new businesses and new careers for South Australians.”

From 18 July, the State Government will:• Abolish share duty• Abolish stamp duty on non-real property transfers (eg. non-fixed

plant and equipment)• Abolish stamp duty on aquaculture leases and statutory licences• Abolish stamp duty on genuine corporate reconstruction• Expand the stamp duty concession for exploration tenements to

include retention tenements.

From 1 July 2015, the State Government will:• Abolish the Save the River Murray Levy• Abolish the Hindmarsh Island Bridge Levy• Introduce a new cost of living concession of up to $200 for

pensioners and low income earners• Extend the small business payroll tax rebate to 2015-16• Index land tax thresholds by up to 2.5 per cent, meaning the

tax-free threshold will increase from $316,000 to $323,000 and implement other minor amendments to the Land Tax Act 1936

• Introduce conveyance duty and land tax exemptions for principal residential properties that are transferred into Special Disability Trusts for no consideration

From 1 July 2016, the State Government will:• Phase out stamp duty on non-residential real property transfers.

From 1 July 2016, there will be a one-third reduction, with a further third reduction on 1 July 2017

HON. TOM KOUTSANTONIS, MP, Treasurer


Master Builder News

From 1 July 2018, the State Government will:• Abolish stamp duty on non-residential real property transfers• Abolish stamp duty on transfers of units in unit trusts• Remove the $1 million stamp duty landholder threshold.

In addition, the tax reform package includes no new taxes. The State Government today ruled out a foreign investment tax and broad-based land tax on residential property.

Mr Koutsantonis said the cost of doing business in South Australia will fall substantially as a result of the State Government’s tax reforms.

“Based on the reference business and tax settings used by the Insti-tute of Public Affairs in its Business Bearing the Burden 2012 publica-tion, South Australia would move from being the highest taxing state to the lowest taxing state once the Government’s tax changes have been fully implemented,” he said.

South Australia’s tax effort is expected to decline significantly as a result of the tax changes the State Government is making, with South Australia’s adjusted total tax effort expected to move further below the national average.

“Our tax changes reduce the harmful impact inefficient taxes have on the economy, and are consistent with the views expressed by South Australians during the State Tax Review,” Mr Koutsantonis said.

“They will make South Australia an even more attractive place to set up business while also allowing our existing businesses to consolidate and grow.

“Through this State Budget, the Government is determined to encourage and foster growth and innovation.

“We believe the reforms will assist small and medium enterprises to expand and diversify, ensuring our small business success rate remains the highest in mainland Australia.”

IPA Business Bearing the Burden tax comparison

RANK

Lowest taxes

Highest taxes

BEFORE CHANGES AFTER CHANGES

12345678

NTVICWAQLDNSWTASSouth AustraliaACT

NTSouth AustraliaVICWAQLDNSWTASACT

* Department of Treasury and Finance calculations based on informationin the Institute of Public A�airs* publication

0.0

-0.5

-1.0

-1.5

-2.0

-2.5

-3.0

Commonwealth Grants Commission total tax e�ort

South Australia’s total tax e�ort (%)

CGC (2013-14)1 After tax changes2

1 Adjusted to remove land tax paid by the South Australian Housing trust.2Adjusted to include the Government’s tax changes and recent changes to emergency services

levy remissions and to remove land tax paid by the South Australian Housing Trust.

-0.4

-2.8

NATIONAL AVERAGE

Stamp duty payable for selected non-residential property values

500 000750 000

1 000 0005 000 000

10 000 000

21 33035 08048 830

268 830543 830

142202338732553

179220362553

7110116931627789610

181277

NO TAXNO TAXNO TAXNO TAXNO TAX

Capital value ($) Current duty ($) 1 July 2016 ($) 1 July 2017 ($) 1 July 2018 ($)

Example 1Company A and Company B both operate in the automotive supply chain. Company A decides to buy Company B to consolidate its posi-tion in the market and to achieve additional economies of scale so that it can remain competitive. The purchase of Company B involves non-residential property assets of around $1.7 million. Company A will save up to $87,330 in stamp duty once the State Government’s tax changes have been fully implemented.

Example 2A business owner wants to consolidate a business that she purchased a year ago with an existing business. The business being consolidated has non-residential property assets of about $3 million. The State Govern-ment’s changes to stamp duty relief for corporate reconstructions will mean that the owner will save $158,830 in stamp duty.

Example 3An individual purchases a shop on Jetty Road, Glenelg, to set up a continental deli. The shop has a capital value of about $1.3 million. Depending on when the property is purchased, the individual will save up to $65,330 in stamp duty.

Mr Koutsantonis said the continuation of the payroll tax rebate will also save about 2200 small businesses $11.3 million in 2015-16, with savings of up to $9800 per business.

The temporary rebate, introduced in 2013-14, has already delivered sav-ings to small business of $19.2 million over the past two financial years.

“Even without rebates, the Commonwealth Grants Commission considers South Australia’s payroll tax effort to be the most competitive in the country,” Mr Koutsantonis said.

“But we recognise our payroll tax rebate still provides an important cash-flow boost to many small businesses.”

Mr Koutsantonis said further discussions about payroll tax reform will occur at a national level as part of the Federal White Paper on the Reform of Australia’s Tax System.

In addition, the State Government is leading a national conversa-tion on how best to tax online gambling to even the playing field and increase tax neutrality between online and traditional operators.

Mr Koutsantonis said the State tax reform package also includes assistance to households and the most vulnerable.

The Save the River Murray Levy will be abolished from 1 July 2015, delivering savings of almost $109 million over four years to households and businesses – or $40 and $182 per year respectively.

The levy currently applies to the water bills of 415,000 households and 50,200 non-residential properties that are able to be supplied with River Murray water.

“We understand the cost of living pressures faced by South Aus-tralian households and want to look at ways of to ease the burden,” Mr Koutsantonis said.

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cherry compoteEspresso co�ee and selection of T bar teas

BEVERAGES Schild Estate Chardonnay Pinot Noir

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Coopers Pale Ale, Lager or Premium Light BeerOrange juice, mineral water and soft drinks

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Master Builder News

“As part of the State Tax Review, we said everything was on the table – including concessions and levies.

“We are abolishing the Save the River Murray Levy in recognition that the original purpose of the fund has been achieved - specifically, to allow us to campaign for the health of the River in this State.”

The specific measures funded by the Save the River Murray Levy will continue to be delivered.

The State Government will also introduce an up to $200 cost of living concession for pensioners, low-income earners and self-funded retirees holding a Commonwealth Seniors Health Card who own their home or rent.

It replaces the $190 council rate concession which supported only pen-sioners, low-income earners and self-funded retirees who own their home.

“We designed this new concession in direct response to the Abbott Government’s failure to reinstate the $30 million per year it cut from pensioner concessions in South Australia in last year’s Federal Budget,” Mr Koutsantonis said.

“The State Government stepped in and covered this cruel cut for 12 months while it campaigned for the Abbott Government to reinstate the funding.

“Unlike the Abbott Government, this State Government will always fight for and protect our most vulnerable citizens - it is in our DNA.

“The new concession will enable about 205,000 households to put up to $200 towards their greatest needs, whether that is electricity, gas and water bills or council rates.

“As a result of this reform, more South Australian pensioners will be better off. Eligibility for the new concession has been expanded to include 45,000 pensioners and low-income earners in South Australia who are tenants.

“They previously received nothing under the council rate concession because they don’t own their own home. Now, they will receive an extra $100 in their pocket each year.

”The new concession is on top of existing pensioner concessions for energy, medical heating and cooling, public transport, Emergency Ser-vices Levy and water/sewerage. The arrangements for these concessions remain unchanged.

Other tax simplification measures to be implemented as part of the State Government’s tax reform package include:• Amending the Stamp Duties Act 1923 to:

• Expand the stamp duty exemption for farms transferred between family members to cover transfers that involve the use of certain types of trusts

• Extend the definition of family groups in the Stamp Duties Act 1923 to include de facto couples

• Replace the stamp duty Ex Gratia relief administrative schemes for disability service providers, incapacitated persons and property donations to charities with legislative exemptions.

• Amending the Motor Vehicles Act 1959 to replace a registration fee Ex Gratia relief administrative scheme for vehicles used to transport children with a disability with a legislative exemption

• Amending the Taxation Administration Act 1996 to require only 50 per cent of the tax in dispute to be paid before an appeal can be lodged.

For more information on the State Government’s tax reform package visit: www.statebudget.sa.gov.au

WILHELM HARNISCH, CEO, Master Builders Australia

Welcome call for inquiry into non-conforming building productsMaster Builders Australia supports the call by Senators Xenophon, Lambie and Madigan for a Senate Inquiry into Non-conforming Building Products (NCPs).

“We welcome the recognition of the seriousness of the problem NCPs pose to the building and construction industry, commercial and residential builders and the safety of the community,” Master Builders Australia CEO Wilhelm Harnisch said.

It is vital that building products comply with Australian Standards and regulations regardless of their point of origin.

Safety is paramount and the problem of non-conforming building products entering the Australian construction supply chain highlights the growing role for regulators such as the Australian Competition and

Consumer Commission (ACCC) and relevant state and territory building approval agencies, in addition to architects, designers (and others who specify building products), suppliers and builders to ensure that building products are compliant regardless of their source.

Master Builders supports the ACCC in their launch earlier this week of an awareness campaign about the dangers posed by faulty electrical cabling.

NCPs pose challenges for both commercial and residential builders and Master Builders looks forward to working with Senators Xeno-phon, Lambie and Madigan (in addition to other members of the Senate Inquiry) to review the current gaps in the system that has seen NCPs being used in buildings.

Master Builders National ConferenceJupiters, Gold Coast,12-14 November 2015

Early Bird now open — Save $200The Master Builders biennial National Conference is heading to the Gold Coast in November, for what will undoubtedly be the industry event of the year once again.

Unlike many traditional industry conferences that have a program full of just technical sessions the Building Australia conference stands out amongst the rest.

The Master Builders National Conference ‘Building Australia’ focuses on leadership and assisting members to make informed decisions in continuing to grow their business whilst developing and maintaining strong leadership attributes within their business ethos. With high profile speakers that will examine the building industry outlook and topics relevant to today’s building and construction industry.

Early Bird registration now open — Save $200 on the Standard rate by registering early! www.masterbuilders.com.au/Events/national-conference

The Master Builders Excellence in Building and Construction Awards will be presented as part of the National Conference on the Saturday evening as the grand finale to an exciting conference on the Gold Coast…………We look forward to seeing you there!

BUILDING AUSTRALIABUILDING AUSTRALIA

Images: courtesy Gold Coast Tourism

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Master Builders National ConferenceJupiters, Gold Coast,12-14 November 2015

Early Bird now open — Save $200The Master Builders biennial National Conference is heading to the Gold Coast in November, for what will undoubtedly be the industry event of the year once again.

Unlike many traditional industry conferences that have a program full of just technical sessions the Building Australia conference stands out amongst the rest.

The Master Builders National Conference ‘Building Australia’ focuses on leadership and assisting members to make informed decisions in continuing to grow their business whilst developing and maintaining strong leadership attributes within their business ethos. With high profile speakers that will examine the building industry outlook and topics relevant to today’s building and construction industry.

Early Bird registration now open — Save $200 on the Standard rate by registering early! www.masterbuilders.com.au/Events/national-conference

The Master Builders Excellence in Building and Construction Awards will be presented as part of the National Conference on the Saturday evening as the grand finale to an exciting conference on the Gold Coast…………We look forward to seeing you there!

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Master Builder News

State Budget – overview for construction industry

HON. TOM KOUTSANTONIS, Treasurer

The 2015-16 State Budget shows the State Government forecasting a return to surplus while delivering a $985 million stimulus package including major tax reforms and targeted investments in growth industries to boost the economy and create jobs.

Treasurer Tom Koutsantonis said the 2015-16 State Budget:• Delivers a tax reform package that provides almost $670 million in

tax reductions over four years by restructuring business taxes to help businesses invest, grow and create jobs.

• Injects a further $315 million over four years into growth industries and targeted infrastructure projects to stimulate the economy and create jobs.

• Returns the Budget to balance – forecasting surpluses from 2015-16.• Protects pensioners and the vulnerable.• Locks in spending of at least $1.3 billion per year on infrastructure.

“Protecting and creating jobs is this State Government’s main pri-ority,” Mr Koutsantonis said.

“The slow-down in the Australian economy and collapse in com-modity prices, the withdrawal of Federal Government support for our auto-manufacturing and naval shipbuilding industries and the $1.4 billion in Federal Government cuts to health and education over the next four years are all threatening South Australian jobs.

“That is why South Australia needs to forge its own future by creating a State tax system that rewards effort and removes barriers for businesses wanting to invest, grow and create careers for South Australians.

“The State Government will also invest in growth industries and essential infrastructure projects to transform the economy, stimulate the construction sector and create jobs.

“We will return the Budget to balance with a forecast surplus of $43 million in 2015-16 and strong surpluses of $654 million in 2016-17, $727 million in 2017-18 and $961 million in 2018-19.

Proposed construction projects include:Schools and children’s centres • $25 million over three years for school improvements including

refurbished learning areas and upgraded information technology (IT) infrastructure.

• $25 million over three years to establish five new children’s centres and provide general improvements to existing facilities.

Public housing• $20 million in additional funding towards a $65 million public

housing package to renovate and rebuild South Australian Housing Trust homes.

Roads• $70 million over four years to improve critical road infrastructure.• $40 million over four years to improve the safety of roads.• $55 million over four years for a new 2.8 kilometre road in Gawler East.

JobsOver the next four years, the State Government will invest more than $10.8 billion in infrastructure projects to support almost 4700 jobs per annum including:• Construction - 1810 jobs per annum.• Road and rail – 1390 jobs per annum.• Water supply – 985 jobs per annum.• Hospital services – 504 jobs per annum.

Mr Koutsantonis made a guarantee that the State Government will spend at least $1.3 billion per year on infrastructure in the general gov-ernment sector to provide world-class services the public expect and deserve while also supporting jobs into the future.

“This State Government re-built the Adelaide Oval and Adelaide Convention Centre, we are building a new Royal Adelaide Hospital, we have re-introduced light rail to Adelaide’s transport system and we have built six new high schools and 42 children’s centres,” he said.

“This major capital investment program continues our long-term plan to upgrade and build essential economic and social infrastructure for South Australia including schools, hospitals, housing and roads.”

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Master Builder News

IAN MARKOS, Director of Policy

Building the future – advocacy updateSouth Australia’s building, construction and property industry may have missed out on big infrastructure spends in last month’s State Budget, but proposed planning reforms provide an opportunity to have the biggest impact on day-to-day business.

More than one brick in the wallPlanning Minister John Rau is preparing to table legislation that will create a new planning body, create a statewide e-planning system and remove appeal rights on individual projects except in particular circumstances.

Th e reforms also propose introducing an urban growth boundary backed by Parliament, and introducing a greater range of penalties for non-compliance.

Master Builders SA has been in contact with the Minister and his offi ce to outline our support for any system that cuts the red tape that binds so much of our industry. In our view, it is likely to support our members every day by simplifying planning policies across both met-ropolitan and regional areas and by creating a single electronic process that combines planning, environmental and other checks. However, we have also expressed concern about the introduction of more penalties when existing penalties appear suffi cient, and reiterated our objection to a legislated boundary that is more likely to bring rim development to an end rather than create jobs.

Black, white or grey hatsMinister Rau is also responsible for the potential reform of SafeWork SA and the separation of education and compliance activities. We sup-port the concerns behind the separation: businesses should feel com-fortable working directly with SafeWork SA without being concerned about potential retribution.

We remain concerned that if an education agent sees a hazard onsite, he or she must either report it – or leave workers at risk. And as soon as a risk is reported, then the trust behind the proposed model fails. Th is obviously requires a solution for the best outcome.

Master Builders SA has instead proposed an enhanced inspectorate that is geared towards building industry trust. An inspector should have a healthy working relationship with businesses and workers, and be fully empowered to help solve small problems, but also be prepared to ensure compliance for high-risk hazards.

Industry trainingSkills Minister Gail Gago recently announced the end of the Skills for all funding for private providers, announcing a new WorkReady pro-gramme where virtually all funding would be reserved to make TAFE SA a sustainable education provider by 2018-19.

Th is shift of funding means it is more expensive for students to undertake training with industry bodies like Master Builders SA. Th is is likely to leave TAFE SA producing students with limited knowledge of industry best-practice, a phenomenon likely to cost businesses more in additional training and lost productivity as years pass.

Master Builders SA has met with Minister Gago to outline industry concerns and was told that the Government remains committed to funding TAFE SA as a near-monopoly. We are currently investigating alternatives to minimise the impact on students and members.

Construction Industry Forum – Subcontractor EngagementTh e Construction Industry Forum has been considering a proposed amendment to the Code of Practice for government-backed projects. Th e amendment proposed introducing a new Schedule focusing on subcontractor engagement on these projects.

Master Builders SA consulted extensively on this matter, which proved to be a diffi cult and, at times, emotive issue. Th e fi nal stage in our con-sultation involved an intense workshop with sector representatives, all focused on delivering a Code that would meet concerns – but with a fi rm eye on the practicalities of commercial projects. Th e original proposal required, for example, the delivery of all the entire construction pro-gramme, despite the fact it may not be fi nalised or indeed be relevant to all parties. Given our fi rm commitment to reducing administrative burdens on business, this was clearly an unacceptable proposal.

Th e revised proposal off ers a clear, concise and practical document. It will be considered by the CIF in the coming month.

Parliamentary EngagementParliament will be considering a variety of matters in coming months that are likely to impact member businesses, including planning reform, SafeWork SA’s future, and industrial manslaughter proposals. We will continue to increase our engagement with Parliamentarians as we seek to get the best outcomes for all members.

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Master Builder News



Building industry backs sensible reforms to 457 Visa systemThe Government’s proposed reforms of the 457 Visa system will sup-port a more productive building and construction industry and more jobs for young Australians.

“Master Builders welcomes the Government’s positive approach in responding to the Independent Review of the Integrity of the 457 Subclass Program, particularly in proposed reforms to strengthen and protect the integrity of the 457 Visa program,” Wilhelm Harnisch said.

The recommendations put forward by the Assistant Minister for Immigration and Border Protection Michaelia Cash show that the Government has listened to the building industry’s call for greater flex-ibility in the system while strengthening its integrity.

Minister Cash’s response will cut red tape for builders who do the right thing while ensuring those who don’t face tougher sanctions.

Contrary to union claims, the building industry is committed to pro-viding jobs for Australians first. The skills of foreign workers are called on to meet skills deficits on projects when local workers are not available.

“Minister Cash’s proposed training fund will reduce future reliance on overseas workers by supporting building industry employers to train more young Australians and upskill existing workers,” Wilhelm Harnisch said.

Master Builders looks forward to working closely with the Gov-ernment to ensure the industry is an important driver of the training delivery model under the new training fund to ensure positive outcomes are achieved and more job ready young people can readily embark on rewarding careers in building and construction.

The Minister’s proposal that the fund should support builders to train more young people in regional and Indigenous communities will help fight youth unemployment and support the Government’s efforts to close the gap for Indigenous Australians.

Master Builders also welcomes the Government’s recommended move to more flexible labour agreements. Reducing the timeframe from two years to three months through the setting of service agree-ment by the Department is supported as is the more flexible approach in English language testing. The proposed averaging approach is a solid first step in addressing the industry’s concerns.

Minister Cash’s 457 Visa reforms will assist the building industry to meet its cyclical skills shortages while providing Australian young people with more rewarding career opportunities in a key growth industry.

Strategic plan for asbestos removal welcomedMaster Builders has long recognised the importance of a strategic approach for the removal of asbestos from existing buildings and there-fore welcomes the Asbestos Safety and Eradication Agency’s (ASEA) release of its National Strategic Plan for Asbestos Management and Awareness 2014-18.

“In particular, Master Builders strongly supports the amendments to the plan that consider the practicality of removing all asbestos-con-taining material (ACMs) from the built environment. The revised removal strategy seeks to identify priority areas where ACMs may present risks,” Wilhelm Harnisch said.

We welcome the recognition of the seriousness asbestos poses to the safety of those working in the commercial and residential building sec-tors, home owners and the wider community.

According to ASEA, Australia has one of the highest per-capita rates of mesothelioma in the world (in 2012, 652 Australians died from the dis-ease). Despite a national ban of the use and importation of asbestos in 2003, many products that contain asbestos are present in our built environment.

It is estimated that up to one in three Australian homes contain some kind of asbestos. Based on current data, ASEA predicts that as many as 25,000 Australians will die from Mesothelioma over the next 40 years.

Master Builders also welcomes the six point strategic approach of the Asbestos Safety and Eradication Agency to seek a coordinated attempt from industry stakeholders and a common one from state and territory governments in dealing with the problem of asbestos safety and eradi-cation which includes:• Awareness – increasing public awareness of the health risks of

working with and being exposed to asbestos.• Best Practice – identifying and sharing best practice in asbestos

management, education, handling, storage and disposal.• Identification – improving the identification and grading of

asbestos and sharing information regarding the location of asbestos-containing materials (ACMs).

• Removal – identifying priority areas where ACMs may be present and review removal infrastructure to estimate if safe removal is practicable.

• Research – Commissioning, monitoring and promoting research in the prevention of asbestos exposure.

• International leadership – calling for a worldwide ban of asbestos mining and manufacturing.

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Master Builder News

It started with an “airie”...MASTER BUILDERS SA GOLF CLUB

Our early daysAn airie is not an auspicious start to any golf game but at the MBA Golf Club’s inaugural Golf Day on 27 September 1957 the failure of the then President to connect with the ball did nothing to diminish the enthu-siasm of Master Builders SA to foster regular local golf games between Members and Associates.

Other Master Builders’ Associations interstate were also holding regular games for their members. It was not long before the South Aus-tralian Chairman proposed an annual interstate Golf Tournament to compete for the M. R. Hornibrook trophy. The first tournament, held over two days, was played in Melbourne in 1959 between South Aus-tralia, New South Wales and Victoria.

Almost 60 years later the Master Builders SA Golf Club continues to give its members and associates the opportunity to play golf with colleagues at various prestigious golf courses in South Australia and interstate.

Local CompetitionsThe Club hosts six local competitions during the year with the first game at Victor Harbor Golf Club and the final game at Kooyonga Golf Club. Both events are followed by a presentation dinner.

The remaining games are held at courses including Royal Adelaide, Grange and Glenelg. A light lunch is provided and there is the opportu-nity for socialising after the games.

The competitions are 4BBB and individual Stableford. You do not need a golf handicap to play in local games, but if you do you have more chances to win a prize.

National CompetitionA highlight of the Master Builders SA Golf Club’s year is the interstate competition for the M. R Hornibrook Cup. The tournament has grown since 1959 and now teams from Brisbane, the Gold Coast, Sydney, Newcastle, Victoria, Tasmania and South Australia rotate hosting the annual competition. South Australia has a strong record in the compe-tition, including four wins out of the last five tournaments.

Victoria is hosting the competition this year in October. Games will be played at Metropolitan, Woodlands and Sanctuary Lakes golf clubs. Players need a current GolfLink Handicap to play in the competition and to be members of the Master Builders SA Golf Club.

The program includes a welcome dinner on Sunday; games on Monday, Tuesday and Thursday; R&R on Wednesday, with the host team organising a daytime outing, and the final game on Thursday followed by a presentation Dinner that night.

Schedule of games for the rest of the year• 3 July Kooyonga Golf Club• 21 August - Royal Adelaide Golf Club (Builders vs Architects

Annual Competition).• 11-15 October - M.R Hornibrook Melbourne Victoria.• 6 November - Kooyonga Golf Club

MembershipCurrently there are 40 members in South Australia. The committee of eight, presided over by Master Builders SA member Peter Ewen, meets regularly.

The Club welcomes new members and invites you to come along and join our members for great golf on some great courses, socialising and networking. And don’t be deterred if you’re more prone to airies than a hole in one. Please note, to be a member you need to have an official handicap (GolfLink number).

For more information contact:Jim Jovanovic (Secretary) Mobile: 0438 340 294Email: [email protected] www.mbasagolf.org


Master Builder News

BRENDON CORBY, Development and Technical Manager

Non-Conforming Products - What does that mean for Builders?A recent Australian Institute of Building Surveyors State Conference was told that builders are being targeted in a transfer of responsibility in the wake of growing concern over the impact of non-conforming products.

It is estimated that every $1 spent on avoidance saves $160,000 in rectification costs so where good practice maximises good building and minimises problems, it is far better to avoid crises by focusing on avoiding problems in the first place.

Master Builders SA practice has been built on this adage. Failure to take note will likely cost the industry dearly.

The Australian Institute of Building Surveyors (AIBS) has been extremely concerned about increasing claims against members even though they were not responsible for material substitution or selec-tion on projects. In many cases, the builder could be targeted as being responsible. AIBS has been so concerned about not being able to access or fund affordable indemnity insurance that they have written to Prime Minister Tony Abbott to express those concerns, together with the con-cern that builders are supposed to carry out the Clerk of Works role, despite rarely carrying that responsibility today.

Builders cannot forget they need to maintain their responsibilities previously bound in the Clerk of Works role. They need to make cer-tain that appropriate due diligence is occurring on their jobs to ensure products and materials they are selecting or substituting or accepting are fit for purpose.

If builders fail to ensure products are fit for purpose or cannot demonstrate they have undertaken adequate due diligence, then liability transfer – be it partial or whole – can lie with them if the product fails.

The recent cladding failure at the Lacrosse apartment fire in Mel-bourne’s Docklands raises the prospect of many years of legal wran-gling over responsibility for the incident. Similar concerns have also been raised with regard to other product issues, including Infinity cables, hi tensile bolts and faulty glazing.

Master Builders’ National Technical Committee has identified non-conforming products as a major issue that must be addressed by the building industry as a matter of priority to avoid potentially catastrophic consequences in both physical and financial terms. Insurers may in future refuse to cover the consequences of a builder’s failure to undertake appropriate due diligence or select products that are fit for purpose.

The legal fraternity is concerned, the insurance industry is con-cerned, the building surveying community is concerned, and State and National Associations are concerned. All are warning that every builder must undertake their own due diligence to ensure they are using the appropriate products for every job or risk the consequences.

I have painted a worrying picture and make no apology for doing so because I care for our industry and am concerned about the potential repercussions of this trend. This is the most worrying period I have experienced in my 30 years in the industry, and rising pressures on commercial margins risk pushing builders into positions where price is more important than due diligence.

Alarm bells are ringing. Please heed them.Members wishing to discuss technical aspects of product performance

or seeking assistance with minimising their exposure should contact our technical department at [email protected] or at 08 8211 7466.


Master Builder News

VALE – David CheneyThe built environment is the signature of our heritage and David Cheney leaves a legacy that rivals Adelaide’s most gracious and fine architecture.

The President and members acknowledge with deepest sympathy the passing of Master Builder David Cheney, aged 56, in a tragic motor accident on 23rd May. David was one of Adelaide’s most prestigious builders whose luxury homes will stand as a testament to his skill long after his unfortunate, fatal motor accident on the South Eastern Freeway at Glen Osmond.

Master Builders SA CEO John Stokes commented, “He was well respected in the industry. What builders do so more than most is they leave their mark with the buildings they construct. He will be sorely missed by not only his family and work colleagues but his client base who respected his standard of work and expertise”.

David was raised in regional South Australia on the Murray River and trained as a teacher before opening a chain of health food stores in Adelaide. Renovating houses turned into a career of building magnifi-cent, quality homes where his eye for detail and demand for excellence created beautiful family homes.

He had a love of travel and motorbikes, which he combined into grand adventures with friends with a 21-day ride through the Himalayas and

his next expedition traversing the Americas from southern Chile to northern Alaska. He had a great zest for life and energy that is reflected in his single-minded dedication to build the finest quality homes.

He had a genuine enthusiasm for recreating historical styles of architecture in the finest detail using modern techniques and materials combined with all of the contemporary conveniences for toady’s living.. Master Builders SA’s Building Ideas television program was lucky to feature his home on East Terrace some years ago as David preferred to preserve his client’s confidentiality and his own anonymity as his homes spoke for his skill and talent.

David was so well recognised as a perfectionist with a fastidious eye for detail for creating superb homes that the Saturday Advertiser pub-lished a two page feature of his five most spectacular homes including his latest at Briar Ave, Medindie as well as homes at Queens Street Norwood, East Terrace Adelaide, Keroma Drive Aldgate and Ringmer Drive Springfield.

Master Builders SA extends its sincere sympathy to his wife, family, friends and colleagues on the passing of a fine Master Builder.

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Training

Training cuts ignore long-term potentialThe State Government’s training cuts under its new WorkReady pro-gram ignore long-term student potential and more efficient ways to invest taxpayer funds, Master Builders SA says.

Director of Training David Thompson said the new list of subsidised training courses were a training cut dressed up as a reform and over-looked more cost-effective training provided by industry in the search to push up demand for TAFE SA.

“For every 50 training positions undertaken by TAFE SA, the private sector can train 100 students at the same cost to taxpayers,” he said.

“This has to raise questions about how taxpayer funds are invested, particularly at a time when households are facing a 9 per cent hike in the Emergency Services Levy. They should be rewarding efficiency, not investing in inefficiency.”

Mr Thompson said the Government appeared to be focusing on course delivery rather than building long-term opportunities for students.

“We structure our courses to support students as they moved from learning introductory trades to developing broader business devel-opment skills, and link them to industry opportunities. Our courses reflect the way the industry is moving, and we provide mentoring to support students as they grow in the industry,” he said.

“Building and construction is a career, and not just a course.“There is a very real danger that the lack of support for building and

construction training will lead to skills shortages in the future. That means tomorrow’s home owners will pay higher costs because of a lack of efficient investment now.

“When the Minister’s official release talks about making TAFE SA sustainable and not the development of the students, we have concerns about whether good policy is being foiled by immediate Budget require-ments – even as taxpayer funds are spent on less efficient outcomes.”

DAVID THOMPSON, Director of Training


Finance

Time is ticking on budget outcomes


Treasurer Tom Koutsantonis’s second Budget offered some relief for South Australia’s building, construction and property sector, but the jury is still out on the long-term story of economic growth.

The winsThe State Government extended its small business payroll tax conces-sions for payrolls up to $1.2 million for one more year, as requested by Master Builders SA. This gives smaller operators some relief in the year ahead and hopefully encourages a measure of much-needed job creation.

There has also been an increasing number of pointers to innovative infrastructure funding, a matter supported by Master Builders SA in its Budget Submission. Current funding is too often linked to direct invest-ment by the State Government, which is limited by the need to meet cer-tain funding ratios. Opening up funding models may see an influx of big picture projects to free up business and improve productivity.

Cuts to stamp duty on off-market shares and underlying assets are likely to help family businesses transition between generations and also may create the right conditions for start-ups in their early years. The removal of stamp duty on equipment and other plant is also likely to provide a marginal boost to building, construction and property busi-nesses on a transactional basis.

The State Government has also signalled the end to the Save the River Murray Levy and Hindmarsh Island Bridge Levy, although it has raised the amount to be collected through the Emergency Services Levy.

Infrastructure investment was minimal in this Budget. An addi-tional $20 million was allocated for social housing renewal this year and another $45 million brought forward from the next two years. The State Government also signalled a new roads project to upgrade the intersection of Main North, Potts and Para Road and to support the expansion of the Gawler East housing development. The Gawler East Collector Link Road will cost an estimated $42.6 million.

An additional $25 million has been set aside for the refurbishment of selected school facilities including Le Fevre High School, Fremont-Elizabeth City High School and the disability unit at Christies Beach High School

The waitsThe hallmark of the Budget was the removal of stamp duty on non-resi-dential property over a three-year period. This will benefit the property sector and, effectively, remove a barrier to purchasing property. Master Builders SA holds reservations that the measure may spark prof-it-taking, but not the job creation and redevelopment needed. There are also observations that transactions may be held off for three years until the full cut occurs.

Increases of the land tax threshold to $323,000 and its future index-ation from July 1, 2016, are a similar reform that is welcome, but may take time to create real opportunities.

In short, these may provide hundreds of jobs – but South Australia needs thousands and thousands of new jobs if it is to rid itself of the country’s highest unemployment rate and rising concerns about dying industries.

The lossesAlthough the State Tax Review delivered some changes to stamp duty, it failed to outline truly fundamental reforms that could serve to boost South Australia’s economy. As economist Darryl Gobbett pointed out at the Master Builders SA Budget Breakfast last month, there was nothing “audacious” about the tax review outcome; unless more is done, he said, it remains a missed opportunity for the State.

Master Builders SA has also been upfront about the lack of public sector reform. The State now boasts 81,665 full-time equivalent public servants, compared to 65,949 in 2000. Although the size of the public sector is now stabilising, public sector wage growth has outstripped that of the private sector in 11 of the past 16 years, while about 45c of every tax dollar raised is required just to pay for public sector wages. Given the State Government’s determination to fund a less efficient TAFE SA rather than invest in industry best-practice providers, this is a disappointing outcome that saddles businesses with higher taxes until a thorough review is undertaken.

The outlookThe State Government has forecast a $43 million surplus this coming year, expanding to $654 million the year after. Net debt is forecast to peak at $6.5 billion in 2016-17, up from $6 billion forecast last year, while jobs are expected to grow 1 per cent per annum and the economy at 2 per cent per annum through to 2017-18.

The lack of big picture infrastructure investment is disappointing, but the combination of landmark planning reforms – expected to be unveiled in coming months – and cuts to stamp duty may be the spark needed to boost the building, construction and property sector. If the Economic Development Board is given free rein to explore infrastruc-ture funding and the State Government listens, there may be some excellent news on the horizon.


Finance

Developing a planning system that encourages innovation and growth


OverviewAn extensive review of South Australia’s planning system has recom-mended 22 key reforms designed to cut compliance costs, industry uncertainty and the rise of prescriptive rules that are seen as hindering innovation and business growth.

Th e State Government has accepted the majority of the recommenda-tions in full or in part, including the adoption of a state-wide electronic planning system and has committed to a fi ve-year implementation.

The role of Master Builders SA and its membersTh e health of the State’s planning system aff ects every member of Master Builders SA, whether it aff ects the cost base and viability of projects or the jobs that fl ow from each project.

We are committed to working with the State Government to deliver planning reforms that work in practice, and call upon our members to assist with feedback on the proposed changes.

DeadlinePlanning system reform is an ongoing process. Th e fi rst tranche of changes is expected in 2015, with additional stages dependent upon trials over coming years. We will therefore be in constant contact with members for feedback.

We urge members to contact us directly at [email protected] with your experiences, insights and suggestions as to how South Australia’s planning system can be improved for consumers, industry and its pro-fessionals and employees.

Th is is an ongoing project.

ResourcesTh e Expert Panel on Planning Reform is available here: http://bit.ly/1IKh9WzTh e State Government’s response is available here: http://bit.ly/SAPlanningResponseTh e Master Builders SA’s initial response is available here: http://bit.ly/1CWSIn4


Jobs still the real challenge for BudgetJobs will only come from this year’s Budget if its centrepiece – a $389 million stamp duty cut to encourage commercial property trans-fers – sparks real development and not mere profi t-taking according to Master Builders SA.

Policy director Ian Markos said cuts to duties on commercial transactions would open up new development opportunities but the jury was out on jobs.

“Th e building, construction and property sector is delighted with any measure that cuts the cost of business, and this ticks that box,” he said.

“But there’s a risk – are we just going to see property deals done to take a profi t rather than building a new future for South Australia? Th at’s the important question, and one the Treasurer surely is hoping is answered with a swathe of new jobs.

“And we would have liked to see more details of the costs behind the Government’s planning reforms. Th ere are scant details, so we are left guessing on what will be one of the most important job-creation initiatives this Government is developing.”

Th e cuts to stamp duty will also favour business sales but there was no hope for those hoping to buy into the housing market, Mr Markos said.

“If you want to buy a city apartment, you get to pocket your stamp duty, but if that’s not the life you want or can’t aff ord, you have to borrow to pay tax. Th e lack of matching funds is, frankly, disappointing considering the rising impact of housing aff ordability,” he said.

Master Builders SA welcomed ongoing payroll tax concessions for small businesses with payrolls less than $1.2 million, a measure likely to provide a boost to the quiet achievers in the state’s building sector.

Indexation of land tax is also welcome – but limiting indexation to one form of tax risks sinking the intent of the State Government’s $2.2 million State Tax Review, Mr Markos said.

“Th e Review was a real opportunity to create change and discussion, but it ended up a black box with little innovation. Investment in the northern suburbs is welcome for the shot it provides our industry, but real reform will help the businesses that are created by today’s apprentices in every part of South Australia – not just the northern suburbs,” he said.

“On the topic of reform, where is the attention to public sector reform? Public sector jobs are outgrowing the private sector, demanding higher taxes to pay the bill. Our Budget needs to pay serious attention to this for the good of the State – and a good start would be reversing its deci-sion on funding a more expensive TAFE sector over industry training provides that can provide a better, more connected training experience for two to three times less cost to taxpayers.


Finance

HON. JOE HOCKEY, Federal Treasurer

$20,000 immediate deduction for assets passesThe hard working women and men of Australian small business were deliv-ered surety to make the most of the Federal Government’s Jobs and Small Business package with key measures passing through the Parliament.

All small businesses can immediately deduct every asset costing less than $20,000 that they have purchased since Budget night and can con-tinue to do so until the end of June 2017.

Small companies with a turnover of less than $2 million will benefit from a 1.5 per cent tax cut from 1 July 2015. This will mean we have delivered the lowest tax rate to small business since 1967.

With the passing of these measures we have delivered the lowest tax rate to small business since 1967 through our historic budget package.

The $5.5 billion Jobs and Small Business package is the biggest small business package in our nation’s history.

Since Budget night we have both travelled across the country meeting with a vast array of small business owners and their employees.

It is clear that they feel energised by the small business measures in our Budget and has given them the confidence to carefully invest in growing their business.

The Government is committed to ensuring Australia is the very best place to start and grow a small business.

Our Jobs and Small Business package is creating the right conditions for Australian businesses to thrive and grow.


Tax Review could boost housing affordability and jobsA ‘big picture’ shift of conveyance duty from purchaser to vendor would give homebuyers a boost when they need it most and save purchasers from borrowing – just to pay a tax.

The proposal, put forward by Master Builders SA as part of its submission to the State Tax Review and located at http://bit.ly/statetaxreview, could save purchasers nearly $1000 a year on a median-priced Adelaide home.

“If we are serious about boosting housing affordability, we need to make bold moves to achieve it,” CEO John Stokes said.

“Anyone buying a median-priced house in Adelaide will likely borrow to pay stamp duty – which means they are paying about $1000 a year in interest just to cover a tax payment. Effectively, you’re borrowing to pay tax instead of paying a tax when you receive cash from a transaction.

“Changing the incidence of stamp duty could make a huge differ-ence to affordability, giving people a better start to self-reliability. But it would also raise questions about its impact on property prices, invest-ment vehicles and its impact on down-sizing.

“The State Government has opened the doors to a review of State taxation because there is a need for real reform, and we commend the Treasurer for setting the stage. It’s up to everyone to be bold in dis-cussing real outcomes.”

The submission by Master Builders SA also proposes allowing home owners to capitalise their land tax, paying it off with interest only when the property is sold and the homeowner has access to cash from the sale, and also finding a way to encourage local governments to undertake shared procurement to cut rates.

Master Builders SA has also proposed the introduction of a “payroll tax holiday” for new jobs lasting three years – rewarding businesses for long-term job creation at a time when South Australia needs growing employment, Mr Stokes said.

“This is a about creating jobs while also realising the government needs to collect taxes for essential services. Giving businesses some leeway for creating a bona fide new job is what is needed today but it’s unlikely to significantly impact revenue. It’s a good short term boost,” he said.

The State Government should also investigate a uniform consump-tion tax with other states but only where the State Government retained control of the funds collected, Master Builders SA suggests.

But there is a caveat.“The same open and consultative process now being used for taxes

should be undertaken for expenditure,” Mr Stokes said.“Taxpayers pay State taxes, Federal taxes, Local Government rates and

charges that ultimately fund dividends for the State Government Budget.“If there is a way to cut wasted expenditure and cut the areas where

the Government is effectively subsidising competition against private sector providers, there will be less demand for increasing taxes and greater growth in private sector jobs – and that is exactly what this current review is seeking to achieve.”


Legal

JOHN VOZZO, Senior Associate, MBA SA Legal

The costs of non-completion: a win for damages as penalties fadeRecent court cases had made it unclear whether liquidated damages clauses would still apply on failure to reach practical completion.

In Grocon Constructions (Qld) Pty Ltd v Juniper Developer No. 2 Pty Ltd1, the Supreme Court of Queensland has taken the opportunity to confirm that liquidated damages clauses do continue to apply. This will provide more certainty to contracting parties in the construction industry.

BackgroundJuniper engaged Grocon to design and construct a 77-storey mixed-use development in Surfer’s Paradise, known as “Soul”, at a cost of $850 million.

The parties relied on a modified version of the standard contract AS4300-1995, which provided that the builder was liable for liquidated damages at various rates if there was a delay in reaching practical completion.

After completion of the project, Grocon sued Juniper for more than $10 million in respect of various claims, and Juniper counter-claimed under the liquidated damages clause for more than $30 million. Grocon responded by seeking that the Court declares the liquidated damages clause void because it imposed a “penalty”.

About liquidated damages clauses and penaltiesParties claiming a breach of contract can benefit from liquidated dam-ages clauses, which lay out how much is paid on a daily basis for breach of contract. The alternative is to prove the actual damage the flows from the breach – a time-consuming, costly and painful exercise.

But there is a limit to the use of liquidated damages clauses: the dam-ages must be a genuine pre-estimate of loss resulting from the breach. Otherwise, the clause is a penalty, and therefore unenforceable.

Recent court decisions (Andrews v ANZ2, Paciocco v ANZ3) had seemingly expanded the penalties doctrine, which would further limit the effectiveness of liquidated damages provisions. These cases, both of which involved class actions against commercial banks in relation to fees, expanded the penalty doctrine to clauses not triggered by contrac-tual breaches, and appeared to indicate that an “additional detriment” or “additional or different liability” was a sign of a penalty. Grocon was the first case to assess the broader impact of these decisions.

“Additional detriment”The law in Australia continues to be that a liquidated damages clause is

only a penalty where it is “extravagant and unconscionable” in comparison with the greatest loss that could be suffered if the clause did not apply.

Liquidated damages payable on one or multiple events? It is well-established law that if the same liquidated damages are pay-able for a major breach as for one or numerous minor breaches, there is

a presumption of an unenforceable penalty clause. Grocon argued that this presumption applied in this case because, for example, failure to hand over correctly tagged keys could be subject to the same liquidated damages as a much more substantial failure to complete.

Justice Lyons rejected this argument, instead saying that the liquidated damages provision applied only to the overarching obligation to reach practical completion on time, which could only be breached in one way.

Was there a reasonable pre-estimate of loss?Justice Lyons took a market-driven approach to assessing the reasona-bleness of Juniper’s loss: the developer could not take possession before practical completion, could not settle contracts of sale, and therefore was likely to suffer considerable loss.

Accordingly His Honour said that, in this case, the losses were so significant that the damages were not extravagant and therefore not a penalty. Instead, they were a reasonable pre-estimate of loss.

What evidence will a court look to?Justice Lyons also said that (unlike under the usual legal rules for inter-preting contracts) courts will not limit themselves to the contract when assessing whether liquidated damages are a genuine pre-estimate of loss. His Honour therefore looked to other matters:• Lengthy negotiations between the parties;• Sophistication of the parties;• Agreement to a tiered liquidated damages structure;• Exchange of financial information that estimated Juniper’s loss in

the event of a delay; and• The luxury nature of the development.

ConclusionBy rejecting Grocon’s arguments, Justice Lyons has avoided urgent redrafting of most of the contracts currently in use in the construction industry, and given comfort to contracting parties in light of the recent bank fee cases. This greater certainty is good news for all participants in the industry.

MBA SA Legal specialises in advising builders on their rights, obligations and risks under construction contracts. We also assist builders in resolving disputes in relation to building work. If you have concerns about a contract you are considering or are having problems in relation to a contract that is already underway, contact us on 8122 4990 for assistance.

Master Builders SA members are eligible for a discounted rate of $175 per hour plus GST.

1. (2015) QSC 102 2. (2012) 247 CLR 2053. (2014) FCA 35


Legal



Extension of FWBC Powers a win for the community

Royal Commission Discussion Paper on reforms welcomed

The continuance of the current ability to compel witnesses to give evidence does not make up for those deficiencies. For example, the FWBC is unable to commence or continue litigation where the liti-gation on the same subject matter has been discontinued because the building industry parties settled their differences.

This means that deals can be done that protects unions and others from the consequences of their unlawful action. Only the restoration of the ABCC and its powers will provide an adequate response to the urgent need to apply the rule of law to the benefit of the building and construc-tion industry and the community.

“The vote by the Senate to extend the compulsory powers of Fair Work Building and Construction (FWBC) is a win for the community and common sense,” Wilhelm Harnisch CEO of Master Builders Australia said.

Master Builders Australia would like to thank the cross bench senators for their support of this common-sense measure. The need to protect wit-nesses and whistle-blowers from coercion and intimidation has been high-lighted by the Royal Commission into union governance and corruption.

The passage of this legislation will ensure FWBC can continue to do its job while consideration is given to restoring the powers of the Aus-tralian Building and Construction Commission (ABCC).

The FWBC is already constrained by a number of provisions that hamper its work.

Master Builders welcomed the identification of areas for possible reform by the Royal Commission into Trade Union Governance and Corruption with the release of their Discussion Paper.

“The Royal Commission has correctly focussed on a number of well documented practices that need to be carefully examined,” Wilhelm Harnisch said.

Master Builders supports the proposition that registered organisa-tions be held to higher governance standards similar to those imposed on company directors under the Corporations Act.

Master Builders has consistently called for a higher fit and proper person test for officers who have control of registered organisations.

Imposing higher penalties on companies who enter into industrial arrangements with unions to buy industrial peace is controversial but was highly successful under the Australian Building and Construction Commission (ABCC) in discouraging such behaviours.

The Commission’s focus on this potential reform should highlight the insufficient powers of Fair Work Building and Construction in this area.



Industrial Relations

A win for South Australian community and building industryA national campaign, sparked by Master Builders Associations

across the country, has effectively lobbied crossbench Senators to act against the rise of unlawful behaviour on construction sites but we need to continue the reform process, Master Builders SA Chief Execu-tive Officer John Stokes said.

“The Federal Court has issued hundreds of thousands of dollars of penalties against union representatives in cases involving harassment, personal abuse and intimidation on Adelaide construction sites,” he said.

“These have been held to be unlawful acts. They inspire fear and raise the personal profiles of union representatives – even as their own mem-bers have to work harder to pay fees from their own pockets to cover those penalties.

“Safety should be the key concern of every person here, whether it is the workers, the businesses, us, the union, or the politicians looking at laws that impact every worksite.

“Any form of unlawful behaviour should be condemned for the shadow it casts over safety – and we will continue to call for restoring greater powers of the ABCC.”

Data released by the Australian Bureau of Statistics in May showed South Australian industrial disputes had fallen significantly. National construction disputes per 1000 employeeshad fallen from 18

days lost, in the September 2014 quarter to only 3.9 days lost in the December 2014 quarter. Yet construction remained the highest of all sectors for industrial action.

“Many parties have noted the rise in industrial action on Adelaide construction sites, and the Federal Court is still looking at accusations of bullying and abuse allegedly undertaken during the construction of Adelaide Oval,” Mr Stokes said.

“If this is a sign of rising unlawful behaviour by unions on South Australian worksites, then we have to ask where a business will find the confidence to make the next big investment that will support jobs.

“These issues are on the table now, and will continue to be to raise the powers of the Fair Work Building Commission. Master Builders SA condemns unlawful behaviour, whether that is a failure by a business to protect its workers or a union harassing, abusing and intimidating the very people they purport to represent.

“We are continuing the campaign calling for measures that remove the protection of parties who enter into a deal and litigation is discon-tinued causing the FWBC to cease action, removing the threat of pros-ecution. The restoration of the ABCC and its powers to apply the rule of law will benefit the community and the industry.”


Industrial Relations

DAVID THOMPSON, Director of Training

Skills Funding – Government risks industry supportThe decision to freeze industry out of South Australia’s training system risks isolating students from the very skills, mentoring and jobs they want, Master Builders SA says.

Following a meeting with Skills Minister Gail Gago, Education and Training Director David Thompson said industry involvement with training was paramount.

“Our training courses represent the very best building and construc-tion expertise in South Australia – students learn from the best, to be the best,” he said.

“TAFE SA doesn’t have those industry connections and so turned to industry, yet now this Government is freezing out the industry it needs to provide the jobs and skills for its students.

“I can’t understand the logic behind this decision and its lack of understanding about its impact on students and their job prospects. It should be about careers, not courses.”

Policy Director Ian Markos said taxpayers were at the wrong end of this deal.

“Taxpayers are being forced to pay higher taxes while the Minister introduces policies that fund courses that cost two to three times more than those provided by industry,” he said.

“It’s rewarding an inefficient training provider and building a bigger public sector that will demand higher taxes.

“It should be about connecting students with industry, connecting industry with the best training that delivers the skills they need to grow their business.

Mr Markos said the discussion with the Minister had been frank.“The question will be whether industry, employers and students will

support a TAFE system that has divorced itself from the very sector that demands the highest level of skills for public safety,” he said.


Housing


Housing affordability demands a bi-partisan approachMaster Builders Australia has called for a bi-partisan and rational approach to housing affordability that involves every level of government.

Master Builders Australia CEO Wilhelm Harnisch said Treasury and the Reserve Bank had both identified lack of supply as the core issue of housing affordability when facing the demands of a growing population and changing demographic needs.

“Policy makers at all levels need to implement structural reforms to boost housing supply if they are serious about improving housing affordability,” he said.

The recent establishment of various inquiries is very welcome by industry, but to be effective they need to tackle the nub of the problem.

Increasing the housing supply is the only effective way to exert down-ward pressure on house prices by making sure supply can keep up with demand, Mr Harnisch said.

One of the principal reforms must be more efficient and streamlined state and local government planning and approvals processes and the cutting of excessive infrastructure charges.

Master Builders is calling for the return of federal national compe-tition policy payments to state and territory governments for targeted and permanent structural reforms that removes the current unnec-essary regulatory blockages that holds back and inflates the cost of housing supply.

The recent Harper Review of Competition Policy recognised that there is a proper role for competition payments and Master Builders has put the case to both the Harper Review and the Federal Government that they should be used for accelerating structural reform especially at local government level.

Master Builders also reinforced the need for this reform to Victo-rian Treasurer Tim Pallas as chair of the housing affordability working party announced by the Federal Treasurer Joe Hockey at the recent Council on Federal Financial Relations.

Home ownership is a cornerstone of wellbeing for Australian house-holds and the major vehicle to grow their wealth and sense of inde-pendence. This cornerstone policy is a fundamental underpinning of Australia’s way of life.

Boosting the supply of both private and public housing is essen-tial to ensure more Australians can have access to appropriate and affordable housing; structural reform is the answer and not removing negative gearing.

Age-friendly housing is a win-win for builders and elderly AustraliansMaster Builders Australia and the Australian Government Department of Social Services are calling for entries in the 2015 National Lifestyle Housing for Seniors Award, which recognises excellence in building and the industry’s role in developing innovative housing options for older Australians.

Master Builders Australia CEO Wilhelm Harnisch said the recently released Intergenerational Report claimed the number of Australians aged 65 and over is projected to double by 2055.

“It is vital that the specific housing needs of this growing sector of population are not overlooked. The National Lifestyle Housing Award acknowledges best practice in design and construction, and aims to foster a greater awareness of healthy ageing supported with the benefits of innovative and adaptable housing.”

The Australian Government Department of Social Services’ contin-uing support for the Award highlights the importance of creating age-

friendly environments that help people to stay in their homes longer to maintain their independence.

The Award is divided into two categories: owner-occupied purpose built detached dwellings and multi-unit developments. The Awards are limited to Class 1 and 2 buildings and may include dwellings that are set within a complex that provides complementary facilities to support the lifestyle of the residents.

The 2015 Australian Government Department of Social Services National Lifestyle Housing for Seniors Award will be presented at the Master Builders Australia National Excellence in Building and Con-struction Awards Dinner to be held on the Gold Coast in November.

Master Builders Australia invites builders to nominate their project for the 2015 National Lifestyle Housing for Seniors Award. Contact Master Builders SA for details on submissions into this National Award closing 21 August 2015.



Housing

Public housing upgrades to stimulate construction sector

HON. TOM KOUTSANTONIS, Treasurer

The 2015-16 State Budget includes a $65 million public housing package to renovate and rebuild South Australian Housing Trust (SAHT) homes to stimulate the construction sector and create 1600 jobs.

Treasurer Tom Koutsantonis said $45 million has been brought forward to 2015-16 along with $20 million in additional funds for the package, which will focus heavily on boosting job creation.

The additional funding forms part of the State Government’s $985 million stimulus package of tax reforms and targeted investments in growth industries and essential infrastructure to transform the economy, stimulate the construction sector and create jobs.

“The $65 million stimulus package will involve replacing ageing SAHT social housing stock, which will not only improve the quality of public housing for South Australians but provide crucial support for the housing construction sector,” Mr Koutsantonis said.

“About $25 million of the funding will also be earmarked for direct investment in the northern suburbs.

“This investment continues our long-term plans to upgrade essen-tial infrastructure in this State including schools, hospitals, roads and public housing.”

Renewal SA and the Department of Communities and Social Inclusion will shortly commence work on identifying stock in need of upgrades and begin consultation with the residents and communities involved.

Housing and Urban Development Minister John Rau said this invest-ment also forms part of the State Government’s Renewing Our Streets and Suburbs initiative announced in the Governor’s Speech in February.

“The investment is part of the State Government’s commitment towards broader housing trust renewal,” Mr Rau said.

“The State Government will also be focusing on urban renewal pros-pects within a 10 km radius of the CBD.

“Our public housing stock has a significant role to play in urban renewal. By renewing stock and increasing density we will enable more people to live closer to the city, services and transport facilities.

“We will also have a chance to provide a greater diversity in commu-nities where public and social housing exist, by changing the overall mix of housing in these areas.

“The new public and social housing developments will cater much more appropriately for the needs of residents.”

Mr Rau said the investment also complements the State Govern-ment’s broader reform agenda in the planning and development sector.

“We are about to undertake a total reform of the legislation and sup-porting process in this area,” he said.

“I expect to introduce reforms to the parliament within months.”


Housing

Confidence boost needed for South Australian building


The State Government’s commitment to fast tracking significant planning reforms outlined by the Expert Panel on Planning Reform is welcome news for South Australia’s building and construction industry.

South Australia’s building sector continues to face a slowdown, offset by a number of small privately-funded commercial builds.

Data released by the Australian Bureau of Statistics shows 606 new housing approvals in SA in March 2015, up from 550 in the previous month. However, the long-term outlook for the sector is still in question as March’s results show a decline of 3.7 per cent compared to the same time last year and 11.3 per cent from five years ago.

The value of housing approved increased 27.9 per cent to $187.9 million in March – still lagging the same time last year (down 20.1 per cent) and five years ago (down 4.3 per cent).

Master Builders SA CEO John Stokes said decision of the RBA to main-tain low interest rates plus Federal and State Budgets that incentivise the industry could potentially spark a new wave of confidence to unlock new projects and investment.

“We have historically low interest rates which would have previously triggered new lending and new investment, but the sluggishness of South Australia’s building sector remains a concern,” he said.

“Further rates cuts could be the signal to businesses and consumers that it is time rebuild confidence and invest – but the industry and the commu-nity are likely to take their lead from the Federal and State Budgets.”

Although there are positive signs in the short term for SA’s building sector, the overall 34 per cent lift from February to March 2015 covers a long-term decline in activity, with the number of approvals down 18.8 per cent from the same time last year. The value of that activity has fallen 24.9 per cent over the same time.

The ABS data shows South Australian building, construction and prop-erty is far from booming, Mr Stokes said.

“There are undoubtedly pockets of success within the industry but looking beyond the current period shows there is a need for more positive conditions to stage a recovery – and a need for everyone to work towards building the confidence that will underwrite that recovery,” he said.

PETER JONES, Chief Economist, Master Builders Australia

More ‘Mums and Dads’ enter new housing marketA boost in building approvals for detached houses signals the welcome entry of more non-investors in the housing market, Master Builders Australia chief economist Peter Jones says.

“It is important this continues to rebalance the make-up of the new housing market, which has been dominated by high rise apartments,” he said.

The latest building approvals for April recorded a rise of 4.7 per cent seasonally adjusted for detached houses to be up by 9.1 per cent in annual terms entrenching a strong positive trend for residential building sector.

This trend needs to continue to ensure that the new housing market becomes more sustainable and in putting downward pressure on new house prices.

In total there was a 4.4 per cent seasonally adjusted fall in approvals of new dwellings, largely due to a drop in approvals of multi-unit devel-opments particularly in New South Wales and Queensland.

Nevertheless, overall approvals are up 16.6 per cent through the year confirming the strongly positive role residential building is playing in economy and jobs growth.

Early sign of rebalancing in housing financeThe most recent housing figures show a welcome shift from investment to finance for new construction, Master Builders Australia chief econ-omist Peter Jones says.

“The 4.3 per cent increase in finance for construction of dwellings is an encouraging sign that the market is starting to rebalance away from the dominance of investment property,” he said.

The industry is looking to the non-investor sector to strengthen over the next 12 months to ensure that this rebalancing takes hold.


WHS NewsApprentice safety on site is everyone’s concernSafety on construction sites takes many forms but fundamentally it comes down to:• Hazard Identifi cation• Implementation of eff ective control measures to eliminate or

minimise the risk to health and safety• Adequate and appropriate training, instruction and supervision

As per current WHS legislation any person conducting a business or undertaking has a duty of care in WHS matters.

Th is is not just the realm of commercial sites where there are key personnel tasked with safety supervisory duties but extends through all aspects of subcontracting and residential construction.

Most people involved in the construction industry today will have an understanding of the application of a Safe Work Method & Environ-ment Statement for high risk work.

However it is oft en the simple, bread and butter, daily tasks asso-ciated with any particular trade where injuries can occur even with seasoned experienced workers.

Apprentices are considered to be relatively new entrants to the construction industry, however they are the next generation of trades-people and will be the ambassadors of future safe work practises.

Leading by example, apprentices can be engaged in safe work

practises through any number activities, however some common and straight forward habits to consider on your sites include:• Encourage a reporting culture of incidents, hazards and near misses

to help identify control measures to prevent future occurrences or potential injuries

• Regular open discussions on safety to raise awareness and any issues. Th is might take the form of toolbox or prestart meetings

• Keep documentation of issues / concerns raised• Maintain clean and tidy work sites• Involve apprentices in development and review of SWMES• Provide instruction and supervision for specifi c tool use and tasks

and allow apprentices the opportunity to demonstrate current competence in the use these tools

• Conduct and document site specifi c inductions• Maintain a testing and tagging regime for all electrical tools and

equipment• Use appropriate safety equipment and safe systems of work• Ensure appropriate PPE is worn• Monitor work pace and apprentice fatigue.

For further information and assistance please contact:MBA SA WHS Department - 8211 7466MBA SA Apprentice Group Training – 8461 8242


FeatureFeatureFeatureKitchens & Bathrooms

The Kitchen and Bathroom Designers Institute of Australia, in con-junction with its Media Sponsor, Kitchens and Bathrooms Quarterly, has recently carried out the largest survey of consumers in the kitchen and bath-room market for a decade. Th eir purpose was to fi nd out what consumers are looking for when renovating or building these increasingly specialised areas, and the results are encouraging for designers and manufacturers alike.

Whilst other studies in the kitchen and bathroom industries tend to focus on volumes/economics or trends, this survey sought out a more practical ‘wish list’ of consumers who were planning for an upcoming project, or in the early stages of a build or renovation.

Th e survey attracted signifi cantly more ‘renovators’ than new home builders, and the participants were mostly undertaking projects for homes they intended to occupy (rather than sell or rent out). Not surprisingly, a new kitchen topped the list for those undertaking new home builds and whole home renovations, but laundries were very close behind in an unexpected swing, even ousting ensuites from the reno-vation hit list!

Consumer kitchen and bathroom survey focuses on the ‘wish lists’ of Australian consumers


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time for this one.

Mr Dennis Wright



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Managing Director, BJM Developments






My business has expanded rapidly since we started using

the Waterstop Streamline hob and now I have tilers

voluntarily recommending the Waterstop system – and me –

to other builders. Everyone that uses it loves it.Mr Fred Meddings Managing Director, Watertight Australia

(Waterproofers)

Waterstop Streamline – Why would anyone use anything

else to build a shower? At last someone has got a product together that not only works,

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FeatureKitchens & Bathrooms

KitchensAppliance manufacturers and suppliers would be pleased to know that a third of survey participants were planning to invest over $10,000 on appliances for their new kitchen, indicating that high-end appliances are both desired and valued. New rangehoods and cooktops topped the list, closely followed by refrigerators. Permanent hot/cold water dispenses have taken hold too, with 24 percent of consumers looking for this option, while an impressive 39 percent consider a coffee machine to be a must have!

Not surprisingly, 84 percent of the consumers questioned would expect casual dining and/or entertaining areas to be included in their kitchen space. For almost a quarter of participants, a small office/work-station or homework/study nook would need to be factored in as well.

BathroomsThe average number of bathrooms in Australian homes has risen signif-icantly in the last decade, and the list of desired inclusions in ensuites, main bathrooms and ‘boot rooms’ has grown, too. A shower/bath com-bination is far less desirable than a shower cubicle, with only 14 percent looking for this space saver in the main bathrooms, and only 6 percent in ensuites. This is not to discount the desire for a bath; 57 percent of con-sumers want a stand alone bath in their main bathroom, and 16 percent seek a soak in the ensuite.

And MoreThe study uncovered an overwhelming increase in the desire for an ‘Alfresco Room’ in New South Wales, Victoria and the Northern Ter-ritory, along with some very interesting finds regarding consumers’ changing attitude to design fees. KBDi Members can access the full survey results from the Members area on our website.

Powder Room | Boot Room | Mud Room | What Room?Australia may be an island, but we’re far from isolated when it comes to interior design, with a plethora of international design blogs streaming to Aussie phones, tablets and PCs every day.

And when these American and European interiors are ‘pinned’ and filed by your clients, so too is the foreign terminology, adding a few more tweaks to our complex vernacular and more opportunities for confusion.

In this feature, we’ll look at the subtle differences between the terms gaining popularity in Australia today.

Powder Room‘Powder Room’ has been used by Australians for some time, most often for the small bathroom to be used by guests. The room essentially houses a toilet, basin and mirror, and often adjoins the living/entertaining areas of a home. The Powder Room is by no means losing its favour, but has some growing competition with the incoming Boot Room.

Boot RoomThe term ‘Boot Room’ appears to have originated in the UK, defining the room that football teams broke to for their post-game cheers or commiserations. As home-owners looked for a similar room to facilitate muddy boots, wet sporting gear and the necessary ablutions, the Boot Room made its way on to the home design wish list. Over the years it has evolved to become a bathroom near an entrance way that houses a bench to sit on while you pull off your muddy boots, along with coat hooks and storage, a basin, toilet and shower or bath. For obvious reasons, the Boot Room is best finished with hard-wearing, easy-to-clean products, but by no means need it look like the ‘man cave’ some would imagine!

Mud RoomThe Mud Room is virtually the American equivalent of the Boot Room without the amenities and until the last few years, has most often been found in snowy, damp northern American climates. The sensibility of such a room can be appreciated in any climate, however, and as a place to store outerwear, boots, sports gear and the like, could be considered a practical must have. The location of the Mud Room will generally dic-tate its contents and finish. By the back door it may contain storage bins and shelving, and a floor finish well suited to muddy ingress and egress. By the front door, a more welcoming arrangement would be required, with decorative hardware and cabinetry.

The Kitchen and Bathroom Designers InstituteKBDI is a not for profit industry association representing Australia’s finest kitchen and bathroom designers.

The Institute’s primary goal is to develop, encourage and recognize the highest standards of design and business practice in this specialised field. KBDi is achieving this through: • Facilitating continual professional development for its members• Encouraging participation in recognized and quality training• Co-ordinating a highly esteemed annual awards program • Delivering a comprehensive accreditation program — suitably

qualified and experienced designers are approved to use the post nominal letters CKD Au (Certified Kitchen Designer) and/or CBD Au (Certified Bathroom Designer). These Certified Designers must maintain industry currency with Continuing Professional Development, and adhere to a strict code of ethics.

To learn more about KBDi, visit www.kbdi.org.au, on phone 1300 253 223.

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Feature

UNLOCKING HIDDEN CAPACITY

BY CLOSING THE GAPS

FeatureBuilding Soft ware/Communication

It is vital to understand all aspects of a construction business and its processes, to track the work being carried out and to close gaps to increase your capacity without increasing your workforce. Th e gaps include but are not limited to the deep disconnect between the offi ce and onsite activities, consistent execution of policies and procedures, poor communication and separate silos of information.

Off ering the same consistent and effi cient experience to all clients every single time is extremely important but it is diffi cult. Each client is unique, and there are many factors that infl uence a client’s experience, such as communication, effi ciency and consistency. Successful busi-nesses understand how important it is to identify what those factors are, and develop ways to manage or moderate their impacts. Managing these infl uences requires consistent policies and procedures and the systems or tools to implement and maintain them.

Due to its intricate nature the building and construction industry operates in a diffi cult communication environment with a number of stakeholders including your clients, in-offi ce and on-site staff as well as trades/subcontractors and regulatory bodies. Th e intricacies of project management creates the challenge for eff ective and effi cient communi-cation that is faced by every construction company big or small.

SA BUILDER AUGUST - SEPTEMBER 201538


Advertorial

39

Software to suit every businessBEAMS Software is designed for any business that;1. Begins with a customer that asks for a quote for any service or product. 2. Accepts your quote and wants to proceed.3. Track and maintain all the income and expenses for the service.

This could be a Builder, Developer, Plumber, Contractor, Sub-con-tractor or any industry.

Designed by professional people who understand the processes and importance of providing good customer service and need to adopt effective business management through seamless integration. Pur-chasing software to run your business is not a new concept but the selection process is as important as selecting the best tools for the job.

From the initial contact with the Client to the handover of their new home, BEAMS is there, not only making the process easier but also making sure you keep the expected profits in your account.

Quotations in estimation stage are handled with ease. The contract stage which is more involved and deals with issues of purchase orders, variations and time line scheduling so you can see how things are

going. Variations to Client are dealt with easily and update your con-struction quantities once approved and confirmed by Client. Invoices are processed quickly and without fuss by using the BEAMS generated order number which lets your accounts staff know which job, supplier, how much & if there have already been any draws.

Progress Claims to your Client are easily prepared. Your financial information is at the touch of a button with your taxation requirements processed from already entered data. BAS & PAYG paperwork is com-pleted in 5 minutes not 3 hours!

Financial reports are also available whether for you to keep an eye on how things are going or for your accountant to prepare your returns.

BEAMS is designed as a true network application with user permis-sions so your staff can only work where they are permitted.

For more information contact:Phone: 08 9454 7760Website: www.beamsbuild.com.au

Estimating - Provide accurate, cost-effective estimates.

Contracts - Variations, Purchase orders and track all your onsite activities. Add BEAMS Mobile for your Supervisor and you’ll never suffer scheduling nightmares again.

Accounts - Full accounting functions with Taxation processing and Payroll with job allocation to timesheets.

Beams Prospects - Focuses on presales where the relationship between a company and the customer is managed. This includes capturing leads from the website, emails and correspondence.

Beams Administration - Track the job as it progresses to contract or conversion. Customise as many processes as necessary to cover all your requirements.

Beams Customer Portal - Communication between your customer and your company is managed. They are given a username and password so that they can check their job status and request more information.

Scott Cam - To do a good job, it is so important to have the right tools. To run a successful business, it is just as important to have the right software. Beams has all of the features and functions in one software package and it just works. Beams has been around for over 20 years and they know what is needed.

Ph. (08) 9454 7760 fax. (08) 9454 7782Web. www.beamsbuild.com.au email. [email protected]

Building Software/Communication

Feature

With all the complexity, challenges and various stakeholders within the construction industry, it is impossible to monitor every aspect of the business fully without the correct systems and processes in place. Th e construction industry can be disjointed and as a dynamic sector with a project based nature, communication effi ciency is essential to the success of each project. Miscommunication or a lack of eff ective communication processes can cause expensive mistakes. Well-organ-ized communication results in fewer delays, lower expenses and can increase capacity.

Removing the disconnection between in-offi ce and on-site staff , dis-jointed client communication and subcontractors results in increased satisfaction about the job process/experience and the quality of the build. Not knowing exactly where each job is up to, or who is respon-sible for ensuring that activities are completed on time can result in fi nancial loss, brand damage and unsatisfi ed clients. Th ere are solutions available to help reduce the challenges the construction industry faces, Workfl ow Management Soft ware is the solution.

Workfl ow Management Soft ware (WMS) are fully integrated busi-ness management systems, which provide a single location for internal communication, resource and project management information for your business. Workfl ow Management Soft ware gives you total control of your construction processes in an easy to use streamlined approach which helps you maximise productivity and supports you to make informed leadership and management decisions. Th e best systems are customisable to meet the needs across all levels of the construction industry from custom home to production and commercial builders.

By using Onsite Companion, a workfl ow management soft ware, Tania Beckton at QA Developments has experienced that “everybody across the company whether it be internal offi ce or guys out on-site, knows exactly where each job is at, at any given time.”Workfl ow Management Soft ware provides you the tools to manage the entire process:• Communications – Sharing information between all the

departments removes the separate silos of information and provides

all staff members a location to communicate with the relevant parties on projects or activities.

• Customer Relationship Management (CRM) – from initial enquiries through to the completion of their construction process and ongoing communication with existing customers.

• Preconstruction & Administration Processes – managing all preconstruction and administration tasks and activities to ensure that the correct process and procedures are followed for each and every job.

• Construction Scheduling – during the construction phase the schedule is crucial to keep the build on track. WMS provide the ability to have a clear view of the schedule of each project down to daily activities and tasks.

• Employees and Contractors – Assign work to employees and contractors with ease reducing the need for constant meetings, reduce confusion and provides accountability across the entire process.

• Document Management – Generate, Store and Track all documents & communications in the offi ce & on site.

With Workfl ow Management Soft ware you have a one stop shop that helps increase effi ciency, reduce complexity, increase capacity, insure eff ective communication and connect all stakeholders with the process. “OnSite Companion increases capacity by 30 to 50 percent by closing the gaps” – Matthew Camenzuli Managing Director Companion Systems

If you would like to discuss your Workfl ow Management requirements, contact Companion Systems on 02 9365 0000, our WA Representative Aaron on 0400 097 833 or, via email at [email protected]

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FeatureBuilding Soft ware/Communication



FeatureErosion and Sediment Control on Building Sites

Feature

EROSION AND SEDIMENT CONTROL ON BUILDING SITES:

PART 1: THE PROBLEMS

Master Builders SA is becoming increasingly exasperated by the many companies who steadfastly refuse to adopt proper erosion and sediment control (ESC) practices - all the photos

on this page were taken on building sites in SA. In this, the first of three articles, we focus on these issues. In the next two editions of SA Builder, we will be providing advice on Best Practice

Erosion Control and Best Practice Sediment Control.

“Mate, it’s just a bit of dirt going down the drain!”Just a bit of dirt going down the drain may not seem to be a big deal but added up across the suburbs and added up over time, the resulting problems do become serious. In order to reduce the risk of flooding, Councils have to clean out drains whenever they become silted up. In other words, dirt down the drain means dollars down the drain for rate payers. In SA, these costs are not readily available but, for example, Lake Macquarie City Council in NSW spends approx $ 1.1 million per year on sediment removal from the city’s stormwater system. That works out at about $5 per head per year for every man, woman and child in the city


TrainingOver the past few years, Master Builders SA has tried to educate the industry but only with limited success.

Impacts on downstream creeks and riversWe all know that mud and silt deposited in downstream creeks and rivers has an impact on the environment. But this problem is ‘out of sight and out of mind’ as far as the builders are concerned and, for that matter, as far as the new property owners are concerned. Soils are full of nutrients, so soil erosion means that those same nutrients end up in waterways. Excess nutrients = algal blooms, aquatic weeds, poor water quality etc. And all that affects the fishing, a pastime much loved by many builders!

Road SafetyIt is on record that there was a fatality on a NSW highway upgrade some years ago directly attributed to dirt tracked onto a road that became slippery after a rain event. The same situation could apply to building sites in SA and obviously, for the builder, there would be painful and far reaching legal consequences.

A message to Council InspectorsMaster Builders SA believes that the onus is now on SA’s Councils to enforce the guidelines provided in the EPA Code of Practice and that the only way forward is for the Councils to start issuing Expiation Notices.

Future articles This article will be followed up with practical advice in the next two editions of ‘SA Builder’:• Part 2: Best Practice Erosion Control• Part 3: Best Practice Sediment Control

‘Doing the right thing’ only adds about $500 to the cost of most jobs (rock rumble pad, sediment fence + posts, some fabric or plastic to cover stockpiles etc).

In the meantime, check out the following:• The KESAB website at: www.kesab.asn.au/Publications-toolkits• The IECA website at:

http://www.austieca.com.au/publications/book-5-field-guides

Author, Rob Savory is an old bloke who has been looking after envi-ronmental matters (including ESC) on minesites and oil fields in Aus-tralia and New Zealand for the past 25 years … definitely not a hot-shot young greenie!

FeatureErosion and Sediment Control on Building Sites

It’s unfair to builders who are ‘doing the right thing’Certainly, there are some builders who put in place a proper ESC Plan. But these are in a minority and they are competing against the ‘cow-boys’ who are cutting costs by ignoring erosion and sediment control on their building sites. And this is becoming more prevalent in these tough financial times.

A bad way of educating our kidsKids in the suburbs where houses are being built are going to grow up believing that sediment discharge out onto the road and down Council drains is OK, is standard practice. Not good!

Legal requirementsThe legal requirements are laid out in The EPA Stormwater Pollution Prevention Code of practice for the Building and Contracting Indus-tries. An Expiation Notice for non-compliance with Section 17 of the Water Policy is $360.00 with the penalty for a prosecution being $4,000.00 or one year in jail.

FeatureFeatureSchiavello/Electra House

Electra House, Heritage Refurbishments and Interior Construction


44 SA BUILDER AUGUST - SEPTEMBER 201544 SA BUILDER AUGUST - SEPTEMBER 2015

Heritage meets contemporary in one of the most spectacular res-torations Adelaide has seen in 20 years.

Electra House, once home to Adelaide’s � rst electric li� , is the city’s newest high-end entertainment venue. Its $10 million dollar transformation is all part of the King William Street redevelopment in the heart of Adelaide’s CBD. Built in 1901 by the Citizen’s Life Assurance Company, the heritage-listed building has remained in a derelict, dormant state for the past 20 years. � is exquisite resto-ration has brought a new lease of life to the three-storey site and a world-class hospitality experience to the city of Adelaide.

Designed by Studio 9 Architects with the assistance of Interior Designer Danielle Elia, the 700 person capacity venue features a unique experience on each � oor, in which Schiavello Construction completed the heritage refurbishment and interior construction. Ground level is home to the Electra Bar, with overtones of colonial Singapore mixed with New York glamour. “My goal was to ensure Electra Bar felt like an intimate space, despite the scale of the room and the six meter high ceilings”, says Ms Elia. Inspired by New York’s famous Soho Mondrian Hotel, one of the city’s largest beer gardens was also added to the � oor which features timber decking, marble bars and a multitude of bespoke seating. � is connects to the upper levels via a newly constructed external staircase made of seven tons of steel, glass, and aluminum composite panels.

� e � rst � oor completely contradicts Electra Bar and is occupied by a Modern Greek restaurant – OLEA. Flooded with white on blonde timber, crisp white � nishes and a brass palette, this contem-

porary restaurant features a striking cluster of fabric pendants. � e � oor also provides its own outdoor terrace, commercial kitchen and private o� ce space. � e top level accommodates two lo� -inspired private function spaces, featuring New York marble-topped bars. Each takes inspiration from New York’s West Side and East Side. Exposed original brickwork and steelwork within the eight-metre high, mansard roof, faces one of Adelaide’s premier boulevards, creating a heightened sense of arrival. � e layout is completed with o� ce and storage space in an exposed brick basement.

“Being heritage listed, the entire building � rst needed to be structurally re-engineered and re-enforced”, says Schiavello Senior Project Manager, Petar Vukjajlovic. � e building also maintains many of its original � xtures including: external classical Corinthian columns, six-metre high ceilings with stepped cornices, ornate pil-lars, heritage wall panelling, tessellated tiles, and timber ceilings and balustrades - both of which were restored to original condition within the internal stairwell. As Electra House had not been main-tained for 20 years, Schiavello were faced with the task of matching and repairing existing � nishes, such areas included feature hard plaster columns and cornices, � oor boards, skirtings, architraves and staircases. With the assistance of suppliers, Studio 9 and Dan-ielle Ella, the project team were able to source suitable materials to keep in character with the existing structure. Schiavello Construc-tion worked closely with Heritage SA to overcome infrastructure concerns, including ventilation issues that arose with the late addi-tion of a charcoal kitchen on level two. “Reticulating ductwork and

FeatureSchiavello/Electra House


Feature


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exhausting fumes required signi� cant planning, design, structural suspension and coordination”, says Mr Vukjajlovic.

� e basement was also the source of signi� cant challenges, a� er a nearby tower development pushed the water table out, resulting in the area � ooding. A� er testing multiple solutions with the architects and engineers, the area was drained of water and ‘no-� nes concrete’ was poured over the sub-surface storm water drainage pipe work. � is allowed water to discharge to street level, via a pump station. New li� s, building services and a roof top plant room were also added to the site.

Schiavello’s thorough understanding of the work involved and methodology needed to successfully complete the project, assisted with overcoming the many challenges in an eleven month program. At times the team oversaw more than 100 contractors on site while working collaboratively with the entire project team. � eir sound experience with fast track programs and impromptu changes yielded spectacular results. “To be able to work on a heritage building, alongside professionals such as Studio 9 and Schiavello, ensured the usual road blocks, which appear on any building site, were dealt with professionally and e� ciently”, says Ms Elia.

� e grand scale Electra House is a luxurious addition to one of Ade-laide’s � nest dining precincts, and is sure to impress discerning patrons.

Client: Development & AdvisoryLocation: 131 King William Street Area: 1248sqm + Beer GardenDuration: 11 months Project type: Heritage refurbishment + Interior ConstructionDivision: Schiavello Construction SA Project manager: Development and AdvisoryArchitect: Studio 9 ArchitectsInterior Designer: Danielle Elia


Feature

Sarah Constructions is hoping to soar to new heights this year with the construction of a new aeromedical base for the Royal Flying Doctor Service (RFDS).

South Australian-based building contractor and construction man-ager Sarah Constructions, in a joint partnership alliance with Walter Brooke was successful in the tender to build the $13 million project for the not-for-profit patient retrieval organisation at the Adelaide Airport.

The new facility, which will be located at the greenfields site adjacent to the airport’s main runway at the south eastern corner of Sir Reginald Ansett Drive, will be the first of its kind in Adelaide. The 12,850 square metre development will feature a medical and patient transfer facility that will enhance patient care. The streamlined patient transfer system includes patient care bays incorporating resuscitation equipment, undercover purpose-built ambulance bays and two-way tarmac access for RFDS and ambulance crews. Space to hangar six aircrafts along with parking for an additional nine aircrafts on the tarmac apron also caters for jet aircraft capacity. 2230 square metres of corporate office completes the integrated facility.

The building will create an aeromedical precinct bringing all the state’s medical retrieval services – RFDS and the SA Ambulance Ser-vice’s MedSTAR group – together in the one place.

It is set to open in mid-2016.Construction of the Adelaide precinct has been funded by fund-

raising and donations as part of the RFDS’ ongoing capital-raising pro-gram for the replacement of aircraft, medical equipment and upgrades to operations facilities.

The new RFDS Adelaide base project follows last year’s signing of a nine-year contract agreement by RFDS with the SA government as the state’s fixed-wing provider of inter-hospital transfer and aeromedical retrieval services in South Australia.

RFDS Chief Executive Officer of Central Operations John Lynch said the contract was a significant milestone for the organisation.

“The South Australian government’s decision to confirm our tenure last year in this tangible manner meant we could move forward with investment in strategic projects such as the new RFDS Adelaide base to enhance our capacity for the finest service delivery into the future,” Mr Lynch said.

“We have always been honoured to provide this important service to the community.”

Winning the coveted project, ahead of five other building companies vying to construct the highly sought after precinct, was a significant success for Sarah.

“We are so thrilled to be selected to build the aeromedical base. This is something we believe will become the envy of other states and most importantly, help save lives.” Tim Sarah said.

Securing the prominent tender win last year topped off a busy year for Sarah. The company has worked on a multitude of projects in South Australia over the past 50 years, ranging from refurbishments large developments. Some of Sarah’s recent work includes the $7 million Walkerville Civic and Community Centre redevelopment and the $25m redevelopment of Adelaide High.

Established in 1961, Sarah is a family-owned business run by third generation directors, Tim and James Sarah. The company prides itself on its ability to foster excellent relationships with its customers and cre-ating outstanding construction. The combination of the two has been what led Sarah to become known as one of the most trusted building and construction companies in the state, according to Tim and James.

Sarah Constructions and Walter Brooke have a long running his-tory of collaborating and creating outstanding construction projects,

FeatureSarah Construction - Flying Doctors

Sarah flying high after RFDS tender win



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including the highly awarded Australian Federal Police Headquarters within the Adelaide Airport Terminals Precinct.

Th e project’s architect Eddie Typek said the key planning principle of the precinct had an emphasis on patient care as its primary focus. Mr Typek said the design provided a strong visual and physical con-nectivity between the operational and administrational components of the organisation.

“Th e design has centred on patient care as well as the creation of a work environment to enable all RFDS staff to work on a united front with patient care as the underpinning ethos of the organisation,” Mr Typek said.

He said a unifi ed and strategically collaborative process between the RFDS and Adelaide Airport Limited and their respective design con-sultants and contractors had been critical throughout the procurement process, based on the construction scope delineation of the airside and landside components of the project.

Th e aeromedical base will be an open plan work environment which has been purposefully designed to allow staff , located in the adminis-tration area and the patient transfer facility, to have a view of the hangar and on to the apron. Th e building’s entry, which is centrally located, has been designed as an atrium and will contain the reception space. Th is space will provide views into the hangar, towards the runway, as well as views of the ambulance bay and upstairs administration area. Th e atrium will also feature a stunning raised skylight, which Mr Typek said was chosen to provide a visual and symbolic link to the sky.

“Th is design integrates and refl ects the services provided by the RFDS and their core function of patient care,” Mr Typek said.

Walter Brookes has more than 40 years of experience in Adelaide and is the architecture group behind a number of multi-million dollar projects including the highly coveted Adelaide Oval redevelopment.

Th e medical base is located on land which has been earmarked by Adelaide Airport Limited on its masterplan and ‘Vision for the Future’ document as an aeromedical precinct. Th e aeromedical precinct zone is aimed at attracting like-minded aeromedical and health aligned organ-isations to co-locate in the unique setting of the airport environment. Th ese organisations will have strategic airside access, coupled with a secure and quiet landside interface.

Adelaide Airport Managing Director Mark Young said the new RFDS base would play an integral role in Adelaide Airport delivering on its 30-year vision for future growth.

“I congratulate RFDS on committing to the fi rst major infrastructure project at Adelaide Airport since we announced our long term vision to grow the airport and provide an even greater contribution to the state’s economy,” Mr Young said.

“Th e RFDS’s commitment to provide the best possible emergency aeromedical services will only further enable the airport to realise its vision, to be a top tier airport business centre in the Asia Pacifi c.

“We have a longstanding partnership with the Adelaide base through our community investment program and consider them to be a vital part of the fabric of Adelaide Airport, making an incredible contribu-tion to South Australia.”

RFDS’s investment into the centralised aeromedical precinct will lead to signifi cant business growth in the state. Th e airport’s proximity to the Adelaide CBD, the new Royal Adelaide Hospital and other hos-



pitals and health facilities offers a distinct advantage to the RFDS in its delivery of world’s best practice aeromedical patient care.

Project Manager at Sarah Construction Chris Dunne said the group focussed on continually looking to improve safe work methodologies. He said an emphasis was also put on regularly investigating alternative material selections to improve construction techniques on site, while maintaining a high level quality finish which met or exceeded the cli-ent’s expectation and endeavouring to minimise their costs.

Sarah’s point of difference and a winning factor in the tender was the ability to understand the needs of a not-for-profit organisation, according to Mr Dunne. Mr Dunne said he was aware organisations such as RFDS have limited access to reserve funding and rely heavily on state and federal government support as well as support from the community through fundraising. With this in mind, Sarah focussed on determining the final cost of the precinct early, enabling the company to be transparent. In order to determine final costings, Sarah needed to identify and mitigate any construction risks prior to arriving on site because any unidentified risk could lead to an increase of the final cost.

The use of an innovative software product, Bluebeam, will allow Sarah to monitor quality through shop drawings. It will also allow the group to test and inspect plans during the construction period which will lead to highly effective defect detection and management at the end of the project. Bluebeam specifically monitors any project defect by highlighting the particular area in photographs. It can determine exact locations on the floor plans or elevations. This means potential building issues will be noticed early and can be rectified sooner.

Sarah recently engaged civil engineer Adrian Esplin, who has brought a wealth of industry knowledge when he joined the company as general manager in September 2014. Mr Esplin said the RFDS project would be an exciting challenge for the team.

“It is fantastic to work on a project that is not only so significant to the state’s economy but also supports such vital services for regional South Australians,” Mr Esplin said.

Mr Esplin has more than 20 years of experience in the building industry being former director of Brookfield Multiplex leading many major projects including the Burnside Village Shopping Centre rede-

velopment and the redevelopment of Newport Quays and The Precinct.Mr Esplin said Sarah was in a great space to expand on mid-level

construction projects in the health and aged care sectors. “It didn’t take me long to realise that the recipe which Sarah Constructions has is good and strong.” Mr Esplin said.

Both Sarah and Walter Brooke were experienced and aware of pro-tocols of working in the Adelaide Airport precinct. Having worked on both major and minor projects at Adelaide Airport in the past, including the $10.3 million Australian Federal Police office headquar-ters in 2012, was a significant advantage for Sarah. The organisation was aware of risks within the Adelaide Airport precinct and was able to address them. One such risk was the Adelaide Airport’s extremely high water table. Any excavation of 1.5m below ground level was likely to result in ground swamping and force costs to escalate. Having already known about the water table meant Sarah was able to propose a con-struction strategy to mitigate these potential risks. The team at Sarah also understood the protocols around permits, height restrictions and service interface works at the airport precinct.

Sarah also noted the high level of detail with joinery and fit out, as listed by Walter Brooke, in its proposal for the development. Identi-fying this allowed the group to plan ahead to ensure there would be sufficient time for building and fit out work to be completed within the deadline and not impact on building hand over.

Mr Dunne said the group’s thorough planning during the tender process was part of a commitment to deliver expectations. “This is a target project for our business and we commit to following through on our promises,” Mr Dunne said.

It has been a long time coming for RFDS. The group first began planning for a new home in 2011, submitting a proposal to the State Government for a larger premise.

The state-of-the-art aeromedical base will better support the RFDS’ team of flight nurses and pilots provide 24 hour emergency retrieval and inter-hospital transfers. RFDS Central Operations serves all of regional SA and Central NT. The Adelaide base is also home to the RFDS’s engineering team, who conduct heavy maintenance on the aircraft fleet.


AdvertorialSarah Construction - Flying Doctors

Lincoln Engineers - A Perfect Partnership for RFDS New Base at Adelaide AirportLincoln Engineers is the proud supplier of structural steelwork for the Royal Flying Doctors Service new base at Adelaide Airport for head contractor Sarah Constructions. Th is brand new facility with nearly 300T of structural steel includes a new admin facility, workshop, ambulance bay and hangar capable of housing four aircraft s with an open span of over 45 metres.

Lincoln Engineers identifi ed from the early stages of the project it was critical to have the right partners on board to ensure the level of quality provided matched the expectations of the project and client. Th ese project partners were engaged in the key areas of shop draft ing, steel supply, industrial painting and steel erection.

Precision Steel Detailers provided all the 3D modelling, steel detailing and integration amongst the diff erent building elements including precast, mechanical and the Mega Door.

Bluescope Distribution backed the project from the very beginning with the supply of the highest quality Australian made welded beams and structural members conforming to AS3679 that will stand the test of time and support the RFDS base for years to come.

Lincoln Engineers Engaged Hi-Spec Industrial Coatings to pro-vide all the surface treatment with a vast majority of steelwork being

top coated, ensuring the steel is protected from the harsh elements. Finally, Adelaide Rigging & Cranes whose experience, attention to detail and high safety standards ensured that the building was erected to strict building tolerances conforming to AS4100.

Lincoln Engineers have nearly 50 years experience in the South Australian construction Industry. From humble beginnings in 1966 progressing to ISO9001 Certifi cation & DPTI Tier 1 subcontractors capable of tackling projects both large and small with the highest level of commitment & service. We invite you to contact us today for your next project.

For more information contact:Peter E AtsikbasisPhone + 61 (8) 8447 7022Fax + 61 (8) 8447 4595Mobile 0403 368 111Email [email protected] Website: www.lincolnengineers.com.au

• 3D Modelling & Design Drafting• Structural Steel Fabrication• Steel Erection• Crane Hire & Transport• Project Management• Commercial Industrial & Residential• ISO 9001 Registered Company

37-40 Webb Street Port Adelaide SA 5015PO Box 2161 Port Adelaide SA 5015

P +61 (8) 8447 7022 | F +61 (8) 8447 4595 E [email protected]

www.lincolnengineers.com.au

Quality Certified SystemISO 9001

LINCOLN ENGINEERS PTY LTD


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Sarah Construction - Flying Doctors

The centralised aeromedical base will provide an enormous ben-efit to regional South Australians. Co-locating all the state’s medical retrieval services in a central spot will reduce patient waiting time and allow all South Australians to feel confident they will receive medical help if required.

Health Minister Jack Snelling said the base will mean all South Aus-tralians, regardless of their location, will receive quality of health care.

“It’s going to bring together teams who are responsible for delivering some of the most important health care in our state, making sure that South Australians who live in regional areas can be confident they are going to get the health care they need,” Mr Snelling said.

At the media launch to celebrate the start of construction the Min-ister for Health, the Hon Jack Snelling said the State Government was pleased to partner with the RFDS and was looking forward to the site becoming the base for all air medical services.

“When complete, the greenfields site will include all South Aus-tralian air retrieval services and ensure patients receive rapid medical assistance in an emergency where ever they are in the state,” Mr Snel-ling said.

When the first RFDS retrieval flights leave the new precinct next year it will mark the end of a significant journey of countless hours, hundreds of team members and the collaboration of some of Adelaide’s most trusted companies.

For the team at Sarah Constructions, the first flights will celebrate the amazing things that can be accomplished with passion and determination.

As for the rest of South Australia - they will be able to rest a lot easier knowing help is there.

RFDS chief executive officer John Lynch said the new base would enhance the RFDS’ capacity for high quality service delivery into the future.

“Our proposed design will enable us to streamline the patient transfer process and give us room to better accommodate operational staff working around the clock while improving internal efficiency by relocating all the RFDS personnel currently spread across two locations to one modern premise,” Mr Lynch said.

The work of the RFDS is vital in South Australia. Each year the service helps around 24,000 South Australians. Every 20 minutes the RFDS is providing medical assistance to someone in South Australia. Assistance can be evacuating a person who is sick or injured, transfer-ring a patient living in regional areas to a metropolitan hospital and providing immunisations to children with the RFDS’ fly-in GP clinic. The service also assists regional South Australian by allowing them to speak to someone face-to-face about a mental health issue, as well as transporting a patient interstate for life-saving treatment, such as an organ transplant.

RFDS’ Chairman of Central Operations David Hills said the precinct was an exciting development in the history of the RFDS.

“The new Adelaide base is a major investment by the RFDS Cen-tral Operations into the well-being of all South Australians - city and country alike,” Mr Hills said.

“Construction of the purpose-built medical and aviation facility will help the RFDS to deliver enhanced care for our patients, provide a modern and safe workplace for our staff, as well as increased flexibility and operational capacity to address future needs.

“The RDFS is proud to be the impetus for - and foundation partner of - a new aeromedical precinct at the Adelaide Airport, and excited at the prospect of strengthening our close working relationship with our state retrieval service partners in MedSTAR and SA Ambulance Service.

“Above all, the new facility will enable the RFDS to deliver the best possible 24/7 emergency aeromedical service to the people of South Australia for decades to come.”

Last year Adelaide’s RFDS team transferred almost 4500 patients through the airport base. The number of patient retrievals in 2014 was up 12 per cent compared to a decade ago. The team also evacuated and transferred a further 1800 patients from its RFDS Port Augusta base.

The RFDS relies heavily on fundraising and donations to keep flights in the air. The purchase and fit out of one aircraft alone costs $6 million. The Adelaide and Port Augusta bases currently have seven aircraft in the fleet increasing to eight later in the year and the introduction of its first jet aircraft due in 2018.


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MBA SERVICES

The Building & Construction Industry’s Own Insurance BrokerMBA Insurance Services (MBAIS) is the general insurance brokerage servicing the 23,000 members of the Master Builders Association. (NSW, VIC, TAS, WA, NT, SA & ACT).

We have major offices in Melbourne, Sydney, Adelaide and Perth, and smaller offices in the other States, employing specialist staff skilled in the key aspects of building and construction insurance – Contract Works, Home Warranty and Trades Insurance.

Unlike other general insurance brokers, all profits made by our business are returned directly back to the shareholders, who in turn re-invest those funds into support services such as training, OH&S, legal advice and apprenticeship Schemes, initiatives that support your own building and construction industry.

By being a leading broker in this sphere, MBAIS uses its industry muscle to leverage great ‘value for money’ insurance arrangements with preferred underwriters, ultimately ensuring that we keep pre-miums down and policy coverage broad. Our customer’s claims are always well managed because our insurer panel cherish the importance of their relationship with MBAIS.

We currently provide insurance related services to over 8,000 members nationally, and this number continues to grow strongly each year. We look after the broad spectrum of members – from those with turnovers greater than $1Bn, down to smaller builders with turnovers less than $500K. The bulk of our business is generated off the back of customer referrals and the superior product / price proposition that we can obtain for our members.

Unlike several of our competitors, who have stepped back from specialising in the building and construction industry in recent years, we are continuing to strengthen our specialist expertise in this often complex market. We have also streamlined a number of our internal and external processes in order to make our operation faster and more efficient, providing our customers with a professional ‘can do’ service.

Working closely with our MBASA colleagues allows us to offer a complete ‘business services’ offering, which is more than just insurance broking. This is a unique combination of services, which you’ll only receive if you appoint MBAIS (SA) as your broker.

Our business has also significantly upgraded our ‘on-line’ capability. This is to provide those customers who wish to transact on-line with a fast and user friendly service. Of course most of these services are directed at assisting the smaller residential builder and tradesmen, whose needs are typically less complex and easier to address than some of the larger builders.

Approach / PhilosophyOur approach focuses on providing high levels of service and ‘value for money’ products. We have a pro-active team of experienced and motivated staff, who are charged with delivering a superior customer service experience. Importantly, when you have a claim, we have a team of experts tasked with ensuring you gain peace of mind throughout the entire process.

We only place your business with insurers who offer the best overall package of financial stability, broad coverage, competitive and con-sistent premiums, and a proven claims payment record. You can be assured when placing your business with MBAIS (SA), we only use reputable insurers who can be relied upon.

Insurance Broking ServicesMBAIS takes service elements to another level in the manner in which we service our customers. Our intimate understanding of the building and construction industry has led to the development of many inno-vative and exclusive insurance solutions tailored specifically for the industry. The value MBAIS brings to your business is multifaceted as summarised below:

For more information contact: Phone: 1800 150 888Website: www.mbais.com.au


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THE BAYER PROTECTION PROGRAM OFFERS HOMEOWNERS TOTAL TERMITE PROTECTION

A first for the termite industry in Australia, the Bayer Protection Program offers homeowners total termite protection -- a combination of regular termite inspections (e.g. annually) to detect the presence of termites; and a physical barrier (Kordon®) to prevent entry via areas that can’t be inspected.

The Bayer Protection Warranty starts with an inspection of the home by a Bayer Accredited Timber Pest Inspector. If the home is termite-free, and possible conditions which may be conducive to termite attack are addressed, your Bayer Protection Warranty can be renewed. The same inspection takes place each year to give the homeowner total termite protection. This warranty can be renewed annually (fee applies) for the life of the structure.

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To activate your Bayer Protection Warranty visit www.kordonwarrantycentre.com.au or for further information contact the Bayer Protection team on 1800 552 802.

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2015 Master Builders SA Builder Magazine Aug-Sep

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Transcript of 2015 Master Builders SA Builder Magazine Aug-Sep