2009 - 10 Master Builders Association of the ACT Annual Report

COMMERCIAL | PROFESSIONAL | CIVIL | RESIDENTIAL | SUB CONTRACTORS

ANNUAL REPORT 2010

Master Builders Annual Report | ACT 2

2009/10 Executive & Peak Council:

• RossBarrett–President&PeakCouncilChairman

• SimonButt–Treasurer&PeakCouncilMember

• SamDeLorenzo–Chairman,CommercialSectorCouncil&PeakCouncilMember

• StephenWise–Alternate,CommercialSectorCouncil&PeakCouncilMember

• PeterMiddleton–Chairman,CivilSectorCouncil&PeakCouncilMember

• MichaelDeSimone–Alternate,CivilSectorCouncil&PeakCouncilMember

• PeterFairburn–Chairman,Subcontractors&SuppliersSectorCouncil&PeakCouncilMember

• GraceFerreira–Alternate,Subcontractors&SuppliersSectorCouncil&PeakCouncilMember

• HansSommer–Chairman,ProfessionalSectorCouncil&PeakCouncilMember

• RobPurdon–Alternate,ProfessionalSectorCouncil&PeakCouncilMember

• AndrewKerec–Chairman,ResidentialSectorCouncil&PeakCouncilMember

Other Peak Councillors:

• MarkBauer-PeakCouncilMember,CommercialSector

• MichealEnsor-PeakCouncilMember,CommercialSector

• ValdisLuks-PeakCouncilMember,CommercialSector

• DavidOliver-PeakCouncilMember,CommercialSector

• JohnWilson-PeakCouncilMember,Suppliers&SubcontractorSector

• RichardCorver-PeakCouncilMember,ResidentialSector

EXECUTIVE & PEAK COUNCIL


CONTENTSExecutiveCouncil ....................................................................................................................................2

Presidents,ExecutiveDirectors,HonoraryMembers&LifeMembers ..................................................4

IndustryRepresentation ..........................................................................................................................5

President’sreport ....................................................................................................................................6

PeakCouncilreport .................................................................................................................................7

ExecutiveDirector’sreport ......................................................................................................................8

Treasurerreport .....................................................................................................................................10

MasterBuildersAustraliareport ............................................................................................................11

SectorCouncilreports .........................................................................................................................12

DirectorIndustrialRelationsreport .......................................................................................................16

OccupationalHealth&Safety ..............................................................................................................17

MasterBuildersFidelityFund&SkillsCentreBuildingFundreport .....................................................18

MasterBuildersGroupTrainingreport ..................................................................................................19

2010MasterBuilders&BoralExcellenceinBuildingAwards ..............................................................20

2010Events ...........................................................................................................................................22

2009–2010FinancialReport ................................................................................................................24

MembershipAnniversaries ....................................................................................................................31


1949-1954 FJWatters

1954-1956 DCSmith

1956-1958 JBKennedy

1958-1959 CBurrows

1959-1960 FASomes

1960-1962 PRArmstrong

1962-1963 THBlow

1963-1965 GAAnderson

1965-1967 CFMoore

1967-1969 LVO’Hara

1969-1971 ARMarr

1971-1973 ACWilliams

1973-1975 WIPlant

1975-1977 FJHegerty

1977-1977 WIPlant

1977-1978 GAJones

1978-1980 FJQuinn

1980-1982 FJMarr

1982-1983 CGustavson

1983-1984 JPfeiffer

1984-1986 JKHindmarsh

1986-1987 CTSpring

1987-1988 MEMilne

1988-1989 JJHanrahan

1989-1991 RWinnel

1991-1993 KJBromfield

1993-1998 JAHaskins

1998-1999 TJRodgers

1999-1999 JAHaskins

1999-2001 SJPinter

2001- RDBarrett

HISTORY

1981 THO’Connor

1984 LVO’Hara

1984 FJQuinn

FJMarr

1993 RWinnel

1995 PJMurphy

1998 JAHaskins

2002 JHHailey

2007 RDBarrett

1964-1980 DAndrew

1980-1983 PMBerents

1983-1986 EMLonie

1986-1987 FJGillingham

1987-1989 RWinnel

1989-1990 GWilliams

1990-1998 BDBryant

1998-2007 DPDawes

2007- JRMiller

1989 DAndrew

2007 DPDawes

2009 FJGillingham

PRESIDENTS

LIFE MEMBERS

EXECUTIVE DIRECTORS

HONORaRy MEMBERS


ACT

ABCBCommercial&ResidentialEnergyAdvisoryGroup

ACTSkillsCommission

ACTTertiaryTaskforceReview

ACTWorkSafetyCouncil

ACTWorkSafeConstructionIndustryAdvisoryGroup

ACTPLAAsbestosAdvisoryBoard

ACTPLABuildingRegulationsAdvisoryGroup

ACTPLACommercialAdvisoryCommittee

ACTPLAIndustryMonitoringGroup(Planning)

ACTPLAPlanning&DevelopmentCodes

ACTPLAResidentialAdvisoryCommittee

ACTPLASustainabilityInitiativesProgressGroup

BuildingQualityReview

CanberraBuildersSupplyMerchantsAssociation

Construction&PropertyServices(Constructionqualifications)

ConstructionIndustryAdvisoryGroupontheOH&SHandbook

ConstructionIndustryForumonBestPracticeWaterUse

ConstructionIndustryLongServiceLeaveAuthority

ConstructionIndustryTrainingCouncil

OccupationalHealth&SafetyCouncil(Ministerial)

ProcurementAdvisoryCouncil

TrainingFundAuthority

MASTER BUILdERS Industry Representation

UniversityofCanberra-BachelorofConstructionManagementAdvisoryCommittee

UniversityofCanberra-Building&ConstructionReferenceGroup

VocationalEducationTrainingAdvisoryGroup

WorldSkillsACT

CanberraBusinessCouncilConsultativeCommittee

CanberraBusinessCouncilPlanningInfrastructureTaskforce

EastLakeCommunityReferenceGroup

NewEmploymentOpportunities

IndustryReferenceGroup

NATIONAL

MasterBuildersAustralianBoard

AuditCommittee

ConstitutionalReview

ContractCommittee

ExecutiveDirector’sAdvisory

IndustrialRelations

Membership&MarketingCommittee

NationalResidentialBuildersCouncil

NationalTrainingAdvisoryCommittee

OH&SCouncil

CCFCEOCommittee

CCFNationalBoard

MasterBuildersarerepresentedonthefollowingIndustrybodiesintheACTandNationally.


ThislastyearhasgenerallybeenagoodoneforthebuildingandconstructionindustryandforourMasterBuilders.TheACTeconomyhasperformedwell,infrastructurespendingcontinuedatahighlevel,andourAssociation’sfinancialpositionissound.Theonesignificantdisappointmenthasbeenthecontinuingimbalancebetweentheresidentiallandsupplyandthedemandwhichisstillhavinganadverseeffectonmanyofourmembers.

AsthepeakindustryorganisationintheTerritorywehavecontinuedtohaveastrongvoiceatalllevelsofinfluence.Ultimatelyweareaboutrepresentingourmembers’interestssoitisimportantthatwecontinuetoconductourselvesappropriately.IhavebeeninvolvedwiththeMasterBuildersformanyyears.Forallofthistime,ithasbeenacontinuingfeatureofourorganisationthatweplayaninstrumentalroleinnotonlyrepresentingourmembersbutalsoinassistingthemtoincreasetheirknowledgebase.OurabilitytoinfluencethedebateandpolicyoutcomesintheareasofourprioritiesisnotonlyofsignificantimportancetoourmembersandtheirbusinessesbutalsotoourindustryandtotheACTeconomyoverall.Ibelieveweareattheforefrontineducatingandinformingourmembersoftheeverchangingissueswhichconfrontourindustry.

John’sreporttotheAGM,andmyPeakCouncilreportgivedetailsofdevelopmentssincethelastmeetingandthefinancialreportsaretheretoberead.SoIconcludethisbriefreportbytakingtheopportunitytoexpressmysincerethankstoalloftheMasterBuildersstafffortheircontributiontoourorganisationandIalsothankthosememberswhovolunteertheirtimetositonourboardsandcommitteestohelpprogresstheissuesofourmembersandourindustry.

TheyearaheadwillpresentuswiththeusualchallengesplussomeunexpectednewonesbutIamconfidentthattheMasterBuildersiswellplacedtomeetthem.Sooverall2010-11shouldbeanothergoodyearforourindustry.

Ross Barrett �President

PRESIdENT


MembersofthePeakCouncilhavebeenconfrontedwithaminefieldofissuestoconsiderandchangefoistedonthebuildingandconstructionduringthe2009-10financialyear.Manyoftheissuesandchangehavecomeviabothlevelsofgovernment,federalandterritory.Someoftheissueshavealsoarrivedfromwithintheindustry.

Themajorissuethathasarrivedfromwithintheindustryhasbeenrelatedtothechargesofpoorqualityofbuildingwork.ThePeakCouncilwasinvolvedintheMasterBuilderssubmissiontotheACTGovernmentforumheldwithindustryandconcernedbuildingownersrepresentatives.Whilsttherewasagreatdealofnegativepublicitysurroundingthismatterduringtheyear,theopportunitytoworkshoptheissueandprovideaconsideredandmeasuredresponsebacktothegovernmentplacedMasterBuildersACTinastrongpositiontohelpimplementchange.Itisimportanttonotethatnotalloftheproblemssurroundingqualityofbuildingworkemanatedfromindustry.

TheCouncilalsopaidcloseattentiontothesignificantchangesthatweretakingplaceontheindustrialrelationsfront.Awardmodernisation,thenewFairWorkActandconsiderationaboutthefutureoftheAustralianBuildingandConstructionCommissionwereallimpactingonlocalindustryandinputwasprovidedbyCouncilmembers.TheroleoftheFederalSafetyCommissionerandauditingarrangementswerealsoconsideredbyPeakCouncilandprovidedtheDirectorofIndustrialRelationswithinformationtotaketonationalmeetingswherethesecriticalissueswerebeingdiscussedandwherepolicyisbeingdeveloped.

ThemembersoftheCouncilalsodeliberatedonmattersrelatingtochangestotheACTWorkSafetyActinadditiontodiscussingproposedharmonizationofOccupationalHealthandSafetylawsacrossAustralia.WithharmonisationproposedforaJanuary2012implementation,anumberofmattersarestilltoberesolved.AnothermajorchangeforlocalindustryandonethatthePeakCouncilhadinterestandinputonwastheimplementationoftheSecurityofPaymentslegislation.MasterBuildersACTwascalledonforinputonanumberofoccasionsduringthepreparationandimplementationofthenewAct.

Furtherplanningchanges,landreleaseandtrainingwerealsocoveredinPeakCouncilthisfinancialyear.TheCouncilalsocontinueditsroleasthefinalapprovalbodyfornewmembersoftheAssociation.

Likeallofourcommitteesandcouncils,thePeakCouncilismadeupofverybusypeopleandonbehalfofallofthemembersofMasterBuildersACT,Ithankmembersdeeplyfortheirinterestandwonderfulcontributiontothecontinuedwellbeingofourindustry.

Ross Barrett �Chair

PEAK COUNCIL


Instarkcontrasttothemoodthatbesettheindustryin2008-09withtheonsetoftheworldfinancialturmoilemanatinglargelyfromtheUS,thepastfinancialyearprovidedaboostthatwasnotentirelyexpectedbutmostwelcome.Thereisaraftoffinancialdatathatsupportstheimprovedpositionandthishasbeenreflectedintheworkloadexperiencedbymostmembers.Thekeychallengeistoseethisactivitycontinueoverthenextfewyearsandbeyond.

InreviewingtheactivitiesoftheAssociationoverthepastfinancialyear,therehavebeenmanyareasinwhichtheexecutive,managementandgeneralmembershiphavebeenengaged.Itisnothardtopinpointthemostpressingareasforthemajorityofourmembers.Industrialrelations,workplacereformandoccupationalhealthandsafetyhavebeenkeytouchpoints.Nexttothose,planningremainsaconstantthorninthesideofindustry,althoughtherehavebeenmanygainsoverthepastfewyears.

Thefederallaborgovernment’sindustrialrelationsreformagendabegantotakefulleffectinthelastyearandwiththenewFairWorkActandawardmodernizationbeingimplementedinneartandem,createdawholenewoperatingenvironmentfortheindustry.Inconjunctionwiththereform,thedoorwasopenedforfargreaterunioninvolvementintheconductofbusinesses.Evenatthetimeofpreparingthisreport,somuchremainsupintheairontheindustrialrelationsandworkplacerelationsfront.MuchofthechangeismorefullycoveredinthereportbyourDirectorofIndustrialRelations.

TheACTGovernmentcontinueditsroundtableprogramduringthelastyeartoreceiveinformationthatwouldhelpitrespondtoanyfalloutfromtheGlobalFinancialCrisis.PlanningcontinuedtobehighontheroundtableagendaandMasterBuildersmaintaineditspositionofprovidingwrittenmaterialtotheroundtablesratherthanjusttalkandwalk.Thiswasparticularlyvitalduringaforumconvenedbythegovernmentonbuildingquality.Thesepapershave

beenwellreceivedbytheACTGovernmentinguidingtheirdecisionmakingonkeyissuesincludingcontinuedplanningreform.WemaintainourrepresentationontheIndustryMonitoringGrouponplanningwhichwasestablishedinresponsetooneoftheearlyroundtables.

Planningisalwaysandcontinuestobeacontentiousissuedependingwhichsideofthefenceyousiton.Youhavetheresidentsononesidewhoarealwayssuspiciousofanydevelopmentandyouhavethebuilders/developersontheothersideendeavoringtomaximizetheirfinancialinvestmentandminimizeholdingcostsbygainingapprovalsinatimelymanner.

TheMasterBuilders,throughitsinvolvementwiththeIndustryMonitoringGroup(IMG),hasworkedcollaborativelywiththeACTPlanningandLandAuthority(ACTPLA)overthepasttwelvemonthstoensurethatindustryandtherelevantagenciesstreamlineprocesseswhereverpossibletodeliverbetteroutcomesfortheindustry.

TheMasterBuildersacknowledgethatACTPLAhasdeliveredsignificantefficienciestotheindustry,especiallythroughtheexpansionoftheexemptapprovalsprocess,whichhasresultedinover2,000singleresidentialdevelopmentsnotrequiringapprovalthroughACTPLA.Thesetypesofdevelopmentshavebeenapprovedthroughtheprivatecertificationprocesswhichinturndeliversspeedierapprovalsandminimizingholdingcosts.

ThroughtheIMGdevelopmentapplication,statisticsareconstantlydiscussedandprocessesreviewed.ACTPLAalsointroducedelectroniclodgmentsforDAsoverthepastyearandthishasincreasedto50%ofallapplicationslodgedtoendofJune2010.ThiselectroniclodgmentprocesswillalsobeexpandedtoincludetheBAprocess.Thisshouldresultinfurtherefficiencygainsfortheindustry.

TheConstructionServicesBranchofACTPLAalsohascloseliaisonwiththeMasterBuildersthroughit’sauditingfunctionsofbuilders,buildingcertifiers

EXECUTIVE dIRECTOR


andotherlicensedoccupations.Wewillcontinuetoliaisewiththisbranchtofurtherimproveprocessesintheindustryespeciallyrelatingtoqualityofbuildingworkissuesandfurtherrefinementofissuesassociatedwithdemolitionandasbestosremoval.

AfurtheroutcomeoftheACTGovernmentroundtableprogramwastheestablishmentofanewIndustryReferenceGroup.ThisgrouphaditsgenesisfromapaperpresentedbyMasterBuildersonprocurementthatthecivilsectorprovidedsignificantinputon.TheIRGhasbeenreviewingcasestudiesofbothgoodandbadpracticesaroundtheprocurementprocess,toidentifyblockagesincapitalworksdelivery.ThisisparticularlyimportanttotheACTGovernmentbecauseitssignificantlandreleaseprogramrestsontheprocurementprocess.

TwoagenciesthatimpactheavilyonourmembershipareACTProcurementSolutionsandActewAGL.SeniormanagementandappointedsectorcouncilmembersmeetwiththeChiefExecutivesandseniorstaffofboththesebodiesonaquarterlybasis.Anumberofissuesareresolvedinbothoftheseforums.Whilstwewouldlikeprogresstobequickeronsomeissues,MasterBuildersappreciatesthegoodwillandparticipationoftheagenciesandthecommitmentshownbythehigh-levelrepresentationofbothentities.

Theexecutive,PeakCouncilandSectorCouncilsallcontinuetomeetonaregularbasis.TherearereportsfromtheSectorCouncilsontheiractivitiesfurtheroninthisAnnualReport.CommoninterestmattersthathaveoccupiedtheagendasatthesemeetingsoverthefinancialyearhaveincludedtheintroductionoftheACTSecurityofPaymentsscheme,industrialrelationsissues,ACTWorkSafetylegislation,proposedgovernmentcodificationofChangeofUsecharges,planningreformandtraining.

MasterBuildersGroupTraininghasenjoyedasolidyearofoperation.Theuncertaintyconfrontingtrainingwiththeglobalfinancialturmoilhittingatakeydecision-makingtimemeantrisksneededtobe

minimized.Theboard,seniormanagersandstaffhavesteeredusthroughthedifficultywithdiligenceandhardwork.Ourtrainingoperationscontinuetoexpandandweseeitasabsolutelyvitaltoourindustry’sfuturethatmemberstakeadvantageofandsupportourtrainingeffortsandparticularlytheengagementofourapprenticesthroughthegroupscheme.

Oureventsandfunctionsareanimportantpartoftheengagementwithindustryandshowcasingthegreatworkofourindustrytothepublic.Thisyear’sExcellenceinBuildingAwardswasanoutstandingsuccessandthesupportofmajorsponsorsBoralandallofourothersponsorsisrecognizedwithgreatappreciation.ThereisalsomuchsupportrequiredindeliveringourPresident’sLunches,industrydinners,tradenights,apprenticeawards,golfdayandannualdinnertonameafewofourfunctions.Wearefortunatetohavesomanygreatindustrypartners.

TherearesomanyindividualmemberswhogiveincredibleamountsoftheirtimetohelpformMasterBuilderspolicypositionsandprovideinputtocriticaldebatesaroundamyriadofthingsthatimpactontheday-to-dayoperationoflocalbusinesses.Toooftenthisgoesunnoticedandtheimpactofthatinputisnotunderstoodorappreciated.Ioffermypersonalthankstoallofthosewhoareonourvariouscommittees,councils,referencegroupsandassociatedbodies.

Finally,IthankallthestaffofMasterBuildersandMasterBuildersGroupTrainingfortheirhardworkthroughouttheyear.Welookforwardtocontinuingthatworkduringthenextyearinsupportingtheneedsofourmembers.

John Miller �Executive Director


InhandingdownmyfirstreportasTreasurerlastyearInotedtheconcernsofindustrywiththeonsetoftheGlobalFinancialCrisisin2008.Theforecastsconfrontingallofusweregloomy.ItismostpleasinginthatcontexttoreportthatthesituationinAustraliaandsubsequentlyonouroperationshavenotbeenasdireasmighthavebeenexpected.Ourultimatepositionwasalwaysgoingtorequiretightmanagementandconstantscrutiny,basicsthatneedtobeattendedtoingoodtimesandbad.

NotwithstandingtheconsolidatedfinancialreportwearerequiredtoproducetoreflecttherelationshipbetweentheMasterBuildersAssociationoftheACTandMasterBuildersGroupTraining,Iamabletoprovideanoverviewoftheactivitiesandperformanceofbothentitiesduringthe2009-10financialyear.

Master Builders association of the aCTFromaconsolidatedsurplusof$739,785in2009-10,asurplusof$198,698hasbeenrecordedforMasterBuildersACTastheparententityforthefinancialyearending30June2010.Thiswasabovebudgetexpectationalthoughwasimpactedonlatebytherequirementtoformallyrecognizethecompletionofthenewbuildingformallyintheaccountsinthisfinancialyear.Inavolatileeconomicclimatesuchascurrentlyexists,theexecutivecommitteehasdeterminedthatborrowingsbytheAssociationshouldbekeptataminimum.Weretainaround400m²ofspaceontheupperlevelofourbuildingwithincomepotential.

Expenditureatanoperationalleveliscloselymonitoredtoensuresavingswhilstatthesametimeminimizinganyimpactondeliveryofmemberservices.Membershiphasremainedsteadyduringthefinancialyear.EventsusedtoshowcasetheAssociationandworkofmembers,aswellasprovidinggoodmembernetworkingopportunities,continuetoruneffectivelyandreturnsmallsurpluses.Communicationwiththemembershipisimportantandisasignificantcostalthoughthisisoffsetbyin-housedesignandpublication.

Amodestbudgetsurplushasbeensetforthe2010-11financialyearandIamconfidentthatgiventhe

processeswehaveinplacetomonitorandadjustouractivitiesIwillbeabletoreportbackthistimenextyearofasoundresultforMasterBuildersACT.

Master Builders Group TrainingAgainstadeficitof$24,797recordedlastfinancialyear,wehaveasurplusof$541,087fortheyearending30June2010.Thefluctuationsexperiencedinfinancialoutcomesforthegrouptrainingoperationhavebeenaconstanttodealwithovertheyearsandchangestobotheconomicconditionsandgovernmentfundingarrangementscanimpactquickly.

Ourapprenticenumbersweremaintainedoverthelastyearandpleasinglyinthefaceofthepredicteduncertaintyplacementwithindustrycontinuedtobestrong.TheintroductionoftheConstructionIndustryInductionCard(WhiteCard)trainingkepttheskillscentreverybusyformanymonths.Builder’slicensingtrainingisstillattractingalotofinterestandnewcoursesaroundoccupationalhealthandsafetyandenergyratingarebeingintroduced.

Thenewinformationtechnologytrainingroomisimportanttoourtrainingoptionsandoffering.Newcoursesaroundenergyratingandthermalperformancewillrequireaccesstothistypeoffacilityandtohaveitimmediatelyavailabletouswillassistinsupportingindustryandensuringareasonablereturnonourcommitment.WecontinuetoreceiveadditionalrevenuefromprivateuseofourfacilitieswhennotbeingusedforMasterBuilders’purposes.

ConclusionIendmyreportbyagainthankingmyexecutivecommitteecolleaguesfortheirexcellentsupportinhelpingusallkeepoureyeonthefinancialball.LouiseMacCallumandheraccountsteamcontinuetoproducetimelyanddetailedinformationfromwherewecancloselymonitorthefinancialperformanceoftheentities.IlookforwardtoreportingnextyearinsimilarpositivevainasIhavedoneabove.

Simon Butt �Treasurer

TREASURER


The2009-10yearwasayearofdifferingfortunesforthebuildingandconstructionindustry.

Thesecondhalfof2009sawbothresidentialandcommercialbuilderscaughtinthegripoftheGlobalFinancialCrisis(GFC)despitethemanypositiveeconomicinitiativesofthethenRuddLaborGovernment.ThereisnoquestionthattheGovernment’sstimuluspackageinboostingtheFirstHomeOwnersgrantandtheBERschoolsprogramwereamajorpositiveforindustry.TheseprogramsunderpinnedconfidenceandtheylargelystoppedAustraliafromsufferingatechnicalrecession.Thebuildingandconstructionindustryplayedaverymajorroleinkeepingtheeconomygoingandinkeepingemploymentrelativelystrong.TheGovernmentdeservedcreditforwhatitdidandthiswaspubliclyacknowledgedbyMasterBuildersAustralia.

However,theGFCsawtheavailabilityofbusinessfinancefromthebanksgodownandthecostofborrowinggoup.Thisplacedhugepressuresontheindustryandaproblemthatremains.

Apartfromtheeconomytheindustryin2009-10facedothermajorchallengesandnonemoresothanintheareaofworkplacerelations.ThetransitionfromtheWorkChoiceslegislationtotheFairWorkActhascreatedmanychangesanduncertainties.ThemostunacceptablewastheGovernment’sdecisiontorecommendareductioninthepowersoftheAustralianBuildingandConstructionCommission(ABCC).ThiswasdespitethefindingsoftheGovernment’sowninquirybyJusticeWilcoxwhofoundthatsadlyindustrialunlawfulnessremainsamajorproblemforthecommercialbuildingindustry.MasterBuilderswillkeepfightingfortheretentionoftheABCCpowers.TheimplementationoftheFairWorkActsawbuildingunionsattempttoclawbackandreintroducerestrictiveworkpracticesonbuildingsites.TheAwardModernisationprocesswhichbeganinearneston1January2010wastoguaranteethatemployerscostswouldnotincreasebutthishasproventobeanemptypromise.

ThereweremanyotherinitiativesandreformsputinplacebytheFederalGovernment,oratleasttheprocessstarted,includingnationalworkplace

safety,harmonisation,nationallicensingoftrades,Australianconsumerlaw,disabilityaccesstopremiseslegislation,tonamebutafew.

AsaresultoftheGovernment’smassivereformagenda,advocacyatthenationallevelwasveryintenseinrepresentingtheinterestsofyourindustry.

The2009-10yearendedwithevenmoreuncertaintieswhentheHonJuliaGillardtookoverasPrimeMinisterinJuneandthencalledanearlyelectionnotlongafter.

ThenewtermofGovernmenthasresultedinaminoritygovernmentwiththesupportoftheIndependents.RegardlessthemostimportantchallengeforourindustryishowtheeconomyistobemanagedpostGFC.Withoutastrongeconomyandapositiveeconomicagenda,thebuildingandconstructionindustrywillruntheriskofexperiencingalongperiodofpoortradingconditions.MasterBuildersAustraliawilllobbyhardforthatnottobethecaseintheyearahead.

Wilhelm Harnisch �CEOMaster Builders Australia

MASTER BUILdERS AUSTRALIA


Residential OverthepastyearresidentialbuildingactivityintheACThasbeenverystrong,thiscanbeprimarilyattributedtotheongoingdemandforresidentialhousingandthefirsthomeownergrantboostwhichhasseenverystrongactivityinthefirsthomeownersmarketingsector.ACTGovernmentHousingaffordablehousinginitiativeshavealsocontributedtotheongoingstrengthofthenewresidentialhousingmarket.

ThelastyearhasalsoseenmorelandbeingreleasedtothemarketespeciallyinNorthCanberraandforecastreleasesofanadequatesupplyoflandforfutureyearsincludingMolonglo.Theavailabilityofadequatelandsupplycoupledwithlowinterestratesandlowunemploymentshouldensuresolidgrowthinnewhousingstartswellinto2011.

Theadditionsandalterationssectorofourmarkethasalsoseenrelativelystrongactivityinthepasttwelvemonths.Consumerconfidenceinthissectoroftheindustryappearstobemuchhigherthanlastyearwhichisboostinghouserenovationactivity.Additionsandalterationsactivityareforecasttogainfurtherstrengthovertheshortandmediumterm.

Theredevelopmentsectoroftheindustryhasalsoseenstronggrowthinurbanrenewalwithincreasedactivityinmultiunitdevelopmentsandmediumtolowriseunitdevelopments.Thegrowthinthissectormaybehamperedbyuncertaintysurroundingtheproposedchangeofusechargewhichwastohavebeeninplaceby1July2010.

Theonenegativeissueinthepastyearhasbeenthequalityofworkandspecificissuesraisedbyresidentsinmultiunitdevelopments.TheResidentialSectorCouncilhasbeenanactiveparticipantinaddressingconcernsraisedbytheMinisterforPlanningandwearehopefulofasatisfactoryresolutionmovingforward.

AsIseeittherearechallengesaheadfortheindustry,especiallyaroundtheissueofhousingaffordabilityand

theextracostimpostsbeingimposedonoursectoroftheindustryassociatedincreasedenergyefficiencyrequirements.Theeverincreasingcostsoflandandspecificallythenewrequirementsassociatedwithestatedevelopmentcodeswhich,ifimplementedinthecurrentform,willresultinreducedblockyieldandevenhigherlandcoststotheconsumerandthebuilder.

WealsohavechallengesintheresidentialsectorresourcingadequateskilledtradespeopleespeciallyinperiodswherethereisapeakinconstructiondemandandIcallonoursectoroftheindustrytosupportapprenticeshiptraininginitiativestosecurethefutureskillsneedsofourindustry.

Andrew Kerec �Chair

SECTOR COUNCILS


ProfessionalTheProfessionalCouncilrepresentstheprofessionalindustryincludingplanners,architects,landscapers,engineers,lawyersandbankersjusttonamesomeoftheskills.

ThisCouncilplaysitsroleintheMasterBuildersAssociationtoadviseonaraftofplanning,designandconstructionissuesthatarecontinuallyontheagendaoftheAssociation.TheProfessionalCouncilisrepresentedbyaChairandalternateontheMasterBuildersExecutive.Thesetworepresentativesandmanyothervolunteersthenprovideadviceregardingtheday-to-dayissuesthatmightarisebutmoreusuallyspecificissuesthatareofanon-goingnatureinourindustry.

Asanexampleoftheinputyoursectorhasintoissues,wearepresentlyinvolvedwithcommittees,workshopsandformalsubmissionsworkingonQualityofBuildingWork(predominantlytoaddressresidentialunitdevelopmentprocessestoensurequalityofwork),DraftVariationstotheTerritoryPlan(arangeofamendmentsarecontinuallybeingproposed),ConstructionIndustryAdvisoryGroup(involvedwithcomplianceandeducationactivitiesintheconstructionindustry),ChiefMinister’sRoundTable(aninitiativebytheChiefMinistertomeetwithseniorindustryrepresentativesonmajorissuesconfrontingtheACT),BCA2010(cameintoeffect1July2010includingnewprovisionsforenergyefficiency),MasterBuilders/ActewAGL(regularmeetingstoaddressissuesarising),UniversityofCanberraBachelorofBuilding&ConstructionManagementCourse(toensurethecommitmenttothecontinuationofthiscourse),ACTCivil&AdministrativeTribunal(ACAT)(reviewingdecisionsandpossibleimpactsontheindustry),Training(inputtovarioustrainingcoursesprovidedbytheMasterBuilders).

TheCouncilisalwayslookingforitsmembershiptocontributetothesevariousactivities.

Hans Sommer �Chair

Subcontractors and SuppliersWhenIlookbackatthelastyearIamremindedthatoneshouldnevergiveuponfightingforwhatwethinkisrightandwhatwewantforourIndustry,asagroupwecanachievegreatoutcomes.IsaythisasIthinkofallofthepeople,andtheyknowwhotheyare,thatfoughtsolongandhardtointroducetheSecurityofPaymentslegislation,asfarbackasthelateeighties.

Althoughunsuccessfulatthetime,theylaidthegroundworkfortheintroductionofthelegislationfromthefirstofJulythisyear.Isitperfect?Probablynot;doesitmeanthatthesubcontractorswillbepaidalltheirentitlementsontime?Idon’tthinkso.Itishoweverastepintherightdirectionanditwillgoalongwaytohelpsettleandavoidlongrunningdisputes.IthasbeengreattoseetheincreasedattendanceattheSubcontractorsandSuppliersSectorCouncilmeetingsbutweneedmorememberstoturnupasthisisstillthebestforumtoshareyourgrievancesandtomakeyourvoiceheard.Itisthroughthisforumthatasagroupweahavechancetomakeourindustrymuchmoreequitable.AsthebiggestgroupintheMasterBuilders,ifwetalktheywilllisten!

Intheyearaheadthereismoreworktobedoneandmanymorecausesworthstrugglingfor,likeareductioninworkerscompensationpremiums,properscrutineeringofsubcontractorswithoutaddedburdentothosewhoaredoingtherightthingandmostimportant,tomakesurewehaveavoiceinallmattersaffectingourindustry.

ItakethisopportunitytothankPeterFairburnforhisfantasticcontributionasChairmanofoursectorandwishhimwellinhisretirement.

Graciete Ferreira �Deputy Chairman


Civil ContractorsThelast12monthsoftradinginthelocalCivilConstructionsectorhasbeencharacterisedbyrapidlygrowingorderbooksformostofourmembers,shortagesofskilledplantoperatorsandspecialisedsubcontractors,andtheincreasingpresenceofcontractorswhohavecomefromotherstateshopingtotakeadvantageoftheexcessiveworkload.

Manycompanieswithinthesectorwouldprefertohavetheavailableprojectsspreadoveralongerperiodoftimetotrytoavoidaboombustcycle.Suchawishwoulddeliverbettereconomicvaluetothecommunitybuthasalwaysbeenhardforauthoritiestomanage.TheconcurrentconstructionofthenewdamontheCotterRiverandotherprojectsbytheBulkWaterAlliancehasunfortunatelyaddedtopressureonlocalresources.

Theshortageofresidentialland,associatedheadworksandadjacentinfrastructureisdrivingthecurrentworkloadanditisdifficulttodeterminewhenlandsupplywillcatch-upwithdemandasitsurelymust.

TheyearhasalsobeennotableforthebreakingoftheseveredroughtandareturntothemoretraditionalwetCanberrawintersandtheconsequentproblemofsignificantlabourdown-timewhenevensmallraineventscanhaveasignificantimpactduetoextendeddryingtimesonsitesduringthecoldermonths.Somecontractorsarere-learningtheneedtohavefundsavailabletosurvivetheperiodsoflowincomeafterseveralyearsofunusuallydryconditions.

Ourassociationhascontinuedtoworkwithgovernmentagenciestoofferconstructivesuggestionsfortheimprovementofthedeliveryofcapitalworkstothelocalcommunity.Inparticular,ourlongtermprojectofseekingareviewandchangetothequalityofdesignsanddocumentationoncivilprojectsisnearingcompletion.Wehavealsoexpressedconcernaboutthepracticeofcallingtendersbeforetheprojectisactuallyreadytocommence.Delaystoprojectsoccasioned

byacomplexplanningandapprovalprocessarefarfrombeingresolved.Fromthegovernment’sside,thedepartmentofTAMShasbeenconcernedaboutsomeinstancesoftheslippinginqualityofconstruction.

Ithasbeenasuccessfulyearformostofourmembersandwearegratefultothehard-workingstaffoftheMasterBuildersfortherepresentationandguidancethatisgiventooursectorasawholeandtoindividualmemberswhensoundadviceisrequired.Itisagreatindustrylargelybuiltonthebacksofpositivehardworkingpeopleandweallremainupbeataboutthefuture.

Peter Middleton �President

SECTOR COUNCILS continued...


Commercial Builders ThecommercialbuildingsectorsawanotherbumperyearofworksintheterritoryandIampleasedtoprovideabriefoverviewofactivitiesinthe2009-10financialyear.

ThecombinationofacontinuationofthebuoyantconditionsbroughtaboutbyseveralmajorprojectsinthepublicandprivatesectorandtheFederalBuildingEducationRevolutionprojects,hadthepositiveaffectofgrowthinthesectorcreatingstrongemploymentwithintheindustry,withthecountereffectofmaintainingthepressureontheskilledresourcesatbothworkerlevelandmiddlemanagement.

Thesectorlookstotheskillingindustryandgovernmentsforcontinuedsupporttodealwiththisgrowingproblem.Inthisregardthesectorprovidedon-sitetrainingsupportwhileutilisingtheservicesoftrainerssuchasMasterBuildersGroupTraininginhostingcadetsandtradeapprentices.

TheMasterBuildershavealsobeenveryactiveinencouragingandsupportingtheUniversityofCanberra’sConstructionDegreeprogramwhichisprovingtobeagreatsuccessforthecommercialsector.

AstrongfocusonoccupationalhealthandsafetyonsitewasreinforcedwithdevelopmentandsupportofthesectorbasedOHSliaisongroupinsharinginformationanddevelopingauniformpracticalapproachtoenforcingOHScomplianceonsites.

TheMasterBuildersandcommercialsectorwaswellrepresentedinprovidingeffectivefeedbackandsupportfortheintroductionoftheSecurityofPaymentsActintheterritory,whichcameintoeffecton1July2010.

ComplianceoftradecontractorswaselevatedasanissueandtheCommercialBuilderssectorcontinuingtoinvestigateworkable,selfregulatedsystemsofmonitoringandfacilitatingcompliancethatcantakethepressureofftediousrepetitivemonitoringatthebuilderlevelaswellasatthesubcontractorlevel.

IndustrialrelationsinthesectorcontinuedtobeactivewiththesupportoftheMasterBuildersDirectorofIndustrialRelations,memberswereassistedinachievingworkableagreementsandfeedingbacktocontemporaryissuessuchasawardmodernisationandsubcontractorcompliance.

Thesectorwaswellrepresentedduringtheyearonroundtableswiththevariousauthoritiesandutilityproviderstoengagethemasstakeholdersintheindustrytofacilitateworkablerelations.Manyissueswereraisedthatassistedinidentifyingsystematicproblemsthatarenowontheradarofcontinuousimprovementwhichwillhavelongtermbenefitstomembers.

TheSectorlookstothecomingyearasoneofconsolidationandreadinessmeetthenewchallenges.

Sam DeLorenzo �Chair


IntroductionIunderstandthiswillbethefirstindustrialrelationsreportforwhatonehopeswillbecomearegularevent,thepublicationofanAnnualReport.Giventhatcontext,onesfirstdutyistopayregardtomypredecessor’sservicetotheconstructionindustrygenerallyandtheMasterBuildersinparticular.Twentysixyearsisanenormouscontribution,nevertobereplicated.

WhatthisreportwillsetouttodoisgiveaconciseoverviewofthosemattersthathaveexercisedmytimesincemycommencementinJanuarybothatthelocalandnationallevel.Thereafter,IwillendeavourtodoalittleforwardthinkingwithrespecttoprospectivechangestothelegislativeregimebothintheACTandfederallyandperhapsafewfinalwordsonourinteractionwiththeCFMEU.

The local sceneWhenIcommencedinJanuarytwoimmediateissuesdemandedmyattention.Thefirstwastheneedtobringabetterunderstandingofwhatwasatthatpointverynewfederalindustrialrelationslegislation.Forthoseofususetoworkingwith‘WorkChoices’,thenewFairWorkAct2009(Cth)(theAct)andthemodernAwardregimepresenteddifferentchallenges,nottheleastofwhichwastheincreasedroleoftheunionmovementatworkplaces.Thusinmyfirstfewmonths,armedwithappropriategovernmentfundingweheldanumberofseminarsbothin-houseandatindividualworkplacesexplainingthesubtleyetprofounddifferencesbetweenlifeundertheconservativesandlabor.

Judgingfrommembershipfeedback,itwasasuccessfulexerciseandperhapsworthdoingagainpostelection.

Thesecondmatterofimportancewastheissueof‘sham’contractingortheengagementofABNholdersinthecommercialsectoroftheindustry.ThisformofengagementhasbeencommonplaceforaverylongtimeintheCanberrascene.WiththeadventoftheCommonwealthConstructionCode,theABCCandthenewshamcontractingprovisionsintheAct,itspracticeisnowhighlyproblematic,particularlygiventheovertinterestoftheCFMEUandABCCinthepractice.TheMasterBuildersapproachwastwofold;firstlyweranaseriesofseminarswiththecooperationofHughChalmersofMeyerVandenbergLawyers,whichwere

oversubscribedandsecondly;theprovisionofstrategicadvicetoindividualmembersdependingonexposureandpressurefromboththeunionandABCC.

Itisfairtosaythisissueoccupiedaninordinateamountofmytimeandinalllikelihoodwillcontinuetodoso.Further,thosemembersunderthegreatestpressureremainplasterers,painters,bricklayers,formworkersandotherliketrades.

Theyearhasalsoseenconsiderableworkintheenterprisebargainingspace.UndoubtedlythemainreasonforthishasbeentheweakeningofthebargainingarrangementsundertheAct,whichnowseestheCFMEUenjoyingdefaultrepresentationalrights.Employers,whoforagenerationhavedealtsuccessfullywiththeirworkforcewithouttherecoursetounions,arenowbeingforcedtositdownwiththeCFMEU.Themainareasofnegotiationrevolvearound;hoursofwork(36-38),OH&Sandofcoursemoney.Thecurrentunioncampaignisfor15%increaseoverthelifeoftheagreement.MembersshouldbeadvisedthattheMasterBuildersalwaysaddressesthesemattersonacasebycasebasis.

WiththechangeofleadershipattheCFMEUwehaveobservedastrongerpresenceoftheunionatworkplaces,asthenewSecretaryseekstomakehispresencefelt.ThiswasparticularlythecasefollowingtheunfortunateBartonHighwaybridge-deckcollapse,whichsawtheunionseektogainaccesstosub-contractorinformationinrelationtoworkerscompensationandother‘entitlements’onthebasisoftherebeinga‘reasonablesuspicion’ofbreachesoftheWorkSafetyAct2008(ACT).

The picture australia wideNationallythepicturecanbesummarisedasconfused,asthepartiesseektofullyunderstandtheworkingsofthenewActandFairWorkAustraliainadditiontoimplementationoftheModernAwardsystemandtheharmonisationoftheOH&Slegislationtonameafew.IftheshemozzlethatwastheNationalWagecaseisanygaugeoftheefficacyofthenew‘purposebuilt’FairWorkAustralia,isanyindicationofthefuture,thenallofusareinforabumpyridein2011.

INdUSTRIAL RELATIONS


OH&SIntroductionWiththerecentBartonHighwaybridge-deckcollapse,OH&SissuesremainfrontandcentreintheACTandsurroundingregion.WorkSafety’sfocusisfairlyandsquarelyontheconstructionindustrywithmoreinspectorscomingonboardandtheOfficeofRegulatoryServicesreportinginspectinginexcessof630sitesin2009-10.WehavealsoseentheintroductionofCodesofPractice(FallfromHeights)andchangestotheWorkersCompensationActincreasingcoveragewithintheindustry.

FitnessforWorkandtheprospectoftheintroductionoftestingremainsaworkinprogressalso.CertainlytheMasterBuildersisunlikelytogetinitialwidespreadsupportforimpairmenttesting,butmembersshouldbeawarethatsomehaveexpressedaninterestinbeingstandardbearersandthisisanissue,whichIwillpersonallydrive.Thereoughtbenocompromiseonsafety,nearenoughisnotgoodenoughandzeroharm,whilstcertainlyasearingchallengefortheindustryremainsanachievablegoal.

Allthatsaidanddone,themajorissueconfrontingthemembership,governmentandotherstakeholdersistheharmonisationofallstateandterritoryOH&Slawsintoonenationalcode.Theremainderofthisreportwillgototheimplementationofthenationalsystemdueon1January2012.

Where to for implementation?ThelikelihoodofworkablenationalOH&Slawsbeinginplaceby1January2012appearslesslikelyifyouaretobelievethevoicesofsomeofthestakeholders.ThemodelActreleasedbySafeWorkAustraliamayinfactcomeacropperduetothestructuraldifferenceswithinthevariousstateregimes,asquestionsremainaroundwhichregulatorybodywillprosecuteoffendersandwhichcourtwillhearthesematters.

Thepoliticalstateofthenationshedslittleifanylightontheprospect,withWAnotagreeingtoimplementthelegislation,andgiventhestateoffluxnationally,whicheverparty,withthesupportofIndependents,comestotheTreasurybenchesishardlylikelytobefocusedonwhatwasanon-existentissueatthepolls.Addedto

thismixistheveryrealconcernthattheconstitutionalpictureisfarfromclear.ThestrictlegalistpositionisthatCommonwealthregulatorscanonlyenforceareasoflawwhereanexistingheadofcommonwealthpowerexists,(iethereisanexpresstermintheConstitutiongivingtheCommonwealththepowertolegislate).

Thereisnooccupationhealthandsafetyheadofpowerintheconstitution,meaningthattheonlywaytheCommonwealthcanregulateinthisareaisifthestatesrefertheirpowers,astheydidwithindustrialrelations.

OfcoursetheGovernmentcouldgototheelectorateviaareferendum.ThiswasanoptiongivenseriousconsiderationpriortotheAugustelection,howeverinthecurrentenvironment,anythoughtsofareturntothepolls,ifonlyforareferendumwillbemetwithhowlsofderisionfromapublicutterlysickofpoliticsandpoliticians.Giventhepeculiarconstitutionalrequirements,itisagainunlikely,withareferendumneedingoverwhelmingsupporttohaveanychanceofsuccess.

IntheabsenceofconstitutionalreformOH&Sregulatorswillbelefttodeveloptheirownguidelines–andwithninedifferentjurisdictionsandworkplaceauthoritiesadministeringthelaws,youaregoingtogetunequalandinconsistentapplication.

Thereisalsouncertaintyaboutwhichcourtwillhearmattersofthisnature.InNSWforexampletheIndustrialCourthasjurisdictiontohearOH&Smatters,butthereisnoequivalentcourtinVictoria,ACTorQLDandforawholerangeofcomplexreasons,NSWisunlikelytobethemodeladopted.

Toovercomethisproblemanexistingcourtwillhavetobegivennationaljurisdiction,forexampletheDistrictorSupremeCourtineachstate.Thatsaidthereislikelytobeanenormousfightoverjurisdictionandgiventhatmodellawsweredeterminedbydifferentcourtsthereislikelytobeaseriesofdivergentoutcomesacrossthenation.Thatis,assumingthesystemevengetsofftheground.Sowhilstharmonisationisadesiredoutcome,theroadaheadisfarfromsmooth,withmanycul-de-sacsstilltonegotiate.

Michael Baldwin �Director Industrial Relations


Master Builders Fidelity Fund ReportTheACTMasterBuildersFidelityFundwasestablishedin2002undertheACTBuildingActfollowingthecollapseofHIHandthereluctanceofotherinsurerstoprovideHomeWarrantyInsurance.TheFidelityFundisadministeredbytheACTMasterBuildersAssociationandoperatesunderaTrustDeedwithTrusteesapprovedbytheMinisterforPlanning.ThefundisregulatedunderaprudentialstandardestablishedbyACTGovernmentRegulationandreportstoACTTreasury.

Sincethefundcommencedin2002over15,000CertificateshavebeenissuedtoprotecttheinterestsofconsumersintheACTagainsttheinsolvency,disappearanceordeathofthebuilderduringconstructionandagainstlatentdefects.Thewarrantyperiodis6yearsfromcompletionforstructuraldefectsand2yearsfornon-structuraldefects.

ApplicationsforapprovalwiththeFidelityFundareassessedbyanindependentassessorandapprovedbytheBoardofTrustees.InthelastfinancialyeartheFidelityFundissued2,372Certificatesofcover.ClaimslodgedagainstthefundareadministeredbytheMasterBuildersAssociationandreferredtoanindependentassessorpriortosubsequentreferraltotheFidelityFundBoardofTrusteesforconsideration.Claimsareusuallyprocessedandfinalisedwithin90daysoflodgment.

IreportthattheACTschemeisoperatingwellwhilewarrantyinsuranceinsomeoftheotherstateswherecoverisprovidedbyexternalinsurershasbeenofsomeconcern,thepositionintheACTisdifferent.TheACTMasterBuildersFidelityFundhassafeguardedtheActHomeBuildingIndustrybycontinuingtoprovidecoverageintheTerritory.

Col Alexander �Chair - Board of Trustees

Master Builders Skills Centre Building FundTrainingisthelifebloodofourindustry.Withoutitwewillonlyseeadeteriorationofqualityacrossallaspectsoftheindustry,apositionthatisuntenable.Wecanimportsomanyproductsandappliancesthesedaystosuitourlifestylesbutwecannot

importbuildingandconstruction.Itisdoneonthegroundhere.Totrainpeopleweneeddecentfacilitiesandthisisnotalwaysaneasyundertakingforthoseoperatinginthetrainingworld.

TheMBASkillsCentreBuildingFundwasestablishedtoprovideassistancetonon-profitorganizationsfortheacquisition,constructionormaintenanceofabuildingorbuildingstobeusedasaschoolorschools.Thebuildingfundreliesondonationsbeingreceivedandthentrusteesconsiderappropriatedistributionsbasedongrantrequests.

IampleasedtoreportthatoverthepastyearwehavebeenabletosupportincreasedinfrastructureatMasterBuildersGroupTrainingskillsfacilityaswellassupportingtheOzHelpFoundationintheacquisitionandestablishmentoftheirnewpremisesandtrainingcentreatFyshwick.Bothoftheseoperationsareprovidingcriticalsupporttothebuildingandconstructionindustryandareabletoincreasethatsupportthroughthesecontributions.

WhilstthefundreceivesmuchofitssourcerevenueviadistributionfromlimitedFidelityFundsurpluses,wehavealsosoughtandreceivedotherincomeviafunctionsandourowncharitygolfday.Oneofthechallengesforthefundtrusteesistolookatarangeofactivitiesandopportunitiesthatwouldattractadditionalfunds.Wehavebeenpromotingthefundthroughadvertisingforanymemberwhoisinterestedinandabletodonatetothefund.Iwouldencouragememberstoconsiderthisisagoodwayofgivingbacktothetrainingproviderswhocansupportlocalbusiness.

Thetrusteesmeetperiodicallythroughouttheyeartomanagethebusinessofthefund.Thisalwaysrequiresacommitmentfrompeoplewhoareinvariablyextremelybusyintheirownoperationsbutcommittedtogivingback.IthankmyfellowtrusteesandthosewhosupporttheworkofthefundandIlookforwardtoreportingontheactivitiesofthefundnextyearasitbecomesmoreestablishedinitsroleofsupportingthevitaltrainingeffortneededtogrowtheACTeconomy.

Trevor Corver �Chairman

MASTER BUILdERSFIDELITY FUND & SKILLS CENTRE BUILDING FUND


MasterBuildersGroupTraining(MBGT)hadasolidyearandcontinuestodevelopandgrowasaresultofinitiativesdevelopedthroughourday-to-dayoperationsandtheongoingimplementationofthestrategicplan.

Thisfinancialyear,theGroupTrainingOrganisation(GTO)employed186fulltimeandparttimeapprenticesandtheRegisteredTrainingOrganisation(RTO)trained302fulltimeandparttimeapprentices.

Forecastingdemandforourservicesandbalancingthiswithourannualintakeofnewapprenticesisalwaysdifficultduetothecompetingdemandsofsatisfyingourclient’sneeds,whileensuringthatwedonothaveourapprenticesoutoffulltimeplacement.Thedemandforapprenticesduringthefinancialyearremainedrelativelyconstantwiththedowntimeaveragedat22.3hoursperapprenticeincomparisonto39.8hoursin2008/2009.

Ithasbeendifficultoverthepastthreeyearstoattractsufficientbricklayingapprenticesintothetrainingprogram.Throughtheintroductionofanumberoftrainingincentives,the2009/2010yearhasshowna17%increaseinbricklayingapprenticesintrainingatMBGT.Althoughthenumbersremainrelativelylowincomparisonwithothertrades,wecurrentlystillhave34bricklayingapprenticesintraining.

TheemploymentofadedicatedOH&Sofficerandthereinforcementofsafetythroughourpolicyandcomplianceregimeshaspositivelyimpactedontheworkerscompensationclaimswiththenumberofclaimsdecreasingfrom36inthe2008/2009financialyear,downto10in2009/2010.

Wecontinuetodeveloptraininginitiativestosuitthedemandfromourmembersandthroughchangesinlegislationandindustrystandards.TheintroductionoftheACTInductionCardboostedthetrainingdemandforthisunitofcompetencyandcombinedwithexistingworkerandothershortcourses,MBGTissued1780statementsofattainmentduringthefinancialyear.

AgainourApprenticesandTraineeshaveexcelledinachievingrecognitionforexcellenceintheir

chosenfields.IntheRegionalWorldskillsweachievedgoldinplumbing,silverinBricklaying,bronzeinCarpentry,silverintheschoolbasedcategoryandsilverintheteamcarpentrycategory.ThiswasfollowedupbyGerardAllen,afourthyearplumbingapprentice,securingagoldmedalintheNationalWorldskillscompetitionheldinBrisbane.

TheProductivityPlacesProgramhasprovidedfundedopportunitiesforexistingworkersintheindustrytobeassessedforqualificationswhichrecognisetheskillsandknowledgetheyhaveacquiredthroughonthejobtraining.ThisyearMBGThaveregistered52existingworkersintheprogramcoveringfromCertificateIIIinCarpentry,CertificateIIIBricklaying,CertificateIVinBuildingandtheDiplomaofBuilding.

OurschoolbasedprogramssuchastheSchoolBasedApprenticeSchemeprovidesalearningpathforstudentsandanopportunityforthemtousethistrainingtosecureanapprenticeshipattheendoftheirschooling.Thishasanaddedbenefitinthatthesestudentswillhavealreadyobtainedanumberofskillsandcompetenciespriortoofficiallystartingasanapprentice,makingthemveryvaluabletoourhostclientsfromthefirstdayonsite.TheKidsAssistprogramcontinuestogenerateenormousinterestanditisgenerallyrecognisedinthetrainingarena,thatthisprogramiseffectiveinassistingstudentsmakemoreconsidereddecisionsregardingtheiroptionsforfutureeducationandtraining.

Rod Mitton �ChairmanMaster Builder Group Training

MASTER BUILdERSGROUP TRAINING


The awards DinnerItwasaspectacularnightoffinedining,premiumentertainment.ThehostoftheeveningwasAnhDo,asseenonThankGodYou’reHere,DancingwiththeStarsandTheMattyJohnsShow,tonameafew.Theentertainmentfortheeveningwasablastfromthepast,AlJamesasNeilDiamond:TheUltimateTribute.

Project of the yearTheBotswanaHighCommissionhasearnedKell&Rigbytheprestigiousandhighly-anticipatedawardforProjectoftheYear.

TheconstructionoftheBotswanaHighCommissionshowcasesgreatqualityofworkmanshipandmeticulousattentiontodetail.Thisoutstandingprojectboastsexceptionalfinishes,cleanandprecisejoinery,andintricateglazedbrickworkonthecurvedexternalwall.

House of the yearThetitleofHouseoftheYearisahighlysoughtafterone,awardedtohomesofthehighestpossiblestandard.Thisyear,MonarchBuildingSolutionshavetakenouttheprestigiousawardfortheirexceptionalworkonthiscustom-builthomelocatedinYarralumla.

TheteamatMonarchBuildingSolutionswererecognisedwiththismosthighly-covetedoftheresidentialawardsfortheirdedicationtotopqualityworkmanship,meticulousattentiontodetailandagreatcommandofmaterialsandconstructiontechnique.

MASTER BUILdERS & BORAL EXCELLENCE IN BUILDING AWARDS


Emerging Building of the yearAaronTempletonhasapedigreeofmorethan10yearsservicewithinthebuildingandconstructionindustryasaCarpenterwithanumberofstandoutachievementsmarkinghiscareer.In2000hewasjudged‘OutstandingFirstYearApprentice’andhemaintainedthishighstandardthroughouthisapprenticeship.

Aarondulycompletedhisformalapprenticeshipandwentontoundertakehigherlearningrequirementsin2006throughtheMasterBuildersinACTinpursuitofalow-risebuilderlicensewhichheagainachievedbymaintainingexcellentassessmentoutcomesintheprocess.

Professional of the year - Ian anlezarkIandisplayscontinuoushighlevelsofdedicationandprofessionalisminhisworkandagreatrespectfortheindustryasawhole.IanisaccreditedasaPrincipalBuildingSurveyorwiththeAustralianInstituteofBuildingSurveyors,isregisteredasaPrincipalBuildingSurveyorintheACTandasaGrade1CertifierinNSW.Ian’sareaofexpertiseistheassessmentandapprovalofallclassesofbuildingsinaccordancewiththeBuildingCodeofAustralia.

Subcontractor of the yearNationalFixingPtyLtdhavedevelopedawell-respectednameforthemselvesthroughoutthebuildingandconstructionindustry,consistentlydisplayingmeticulousattentiontodetailandprofessionalworkofthehigheststandard.NationalFixingPtyLtdplaceagreatfocusonqualityofworkmanshipandtheflawlessnatureoftheirworkspeaksforitself,winningthemthecovetedtitleofSubcontractoroftheYear.


2010 EVENTS2010 Charity Golf DayThisyear’sGolfDaywasheldatYowaniCountryClubandthemoneyraisedthroughthiseventwenttotheMasterBuildersSkillsCentreBuildingFund.

Thedaybeganwithsomeverykeenplayerstee-ingoffjustafter6.30am.Fromthere,over220MasterBuildermembersandguestsplayedaleisurelyroundofgolf,upuntilapproximately6.00pm.Theeventdinnerhostedby106.3FMRadioPresenterCamSullingsandthespecialguestforthenightwasAustralianmediapersonality,sportscommentatorandformerAussieRulesplayerSamKekovich.

2009 annual Dinner - Hotel Realm250guestsattendedtheAnnualDinner,JohnHargreaves,MLAandhiswifeJennyrepresentedtheACTGovernmentandamongsttheguestsfromallsectorsofthebuildingandconstructionindustrywerelifemembersJohnHailey,JohnHaskinsandofcourseourPresidentandlifememberRossBarrett.

GuestsweretreatedtoseveralveryfunnysetsbyourMCPaulMartell.MarkSullivan,ManagingDirector,ActewCorporationandNewsLimitedjournalistGlennMilnewerealsopartoftheevening’sline-upasguestspeakers.AndtocapthingsoffseventeenlongstandingmemberswerepresentedwithMembershipAnniversarycertificates.

2010 Industry DinnerForourfirstIndustryDinnerfor2010weweredelightedtoannouncethattheLeaderoftheFederalOppositiontheHonMr.TonyAbbottMPwouldbetheguestspeaker.ThedinnerheldintheFederationBallroomatHyattHotelCanberrawasanoutstandingsuccess.MrAbbott,inthelead-uptotheFederalElectionpickedourIndustryDinner,overmanyotheropportunities,tooutlinewhathewoulddeliverfortheconstructionindustryifelected.


Master Builders Group Training apprentice & Cadet awardsTheApprenticeandCadetAwardsrecogniseandcelebratetheoutstandingachievementsoftheMasterBuildersApprenticesandCadets.

apprentice of the year - Gerard allen

Gerardhaswonanumberofawardsduringhisapprenticeship,includingthesilverawardatthe2008NationalWorldskillsandwasrecognisedasthestage1andstage2plumberoftheyearatthePlumbingawards.During2010GerardreceivedtheOutstandingplumberoftheyearawardatthe2010Plumbingawards,OutstandingapprenticeoftheyearattheGroupTrainingawardsandtheGoldawardatthe2010NationalWorldskillsCompetition.

Cadet of the year - Peter Jamieson

Peter’sdeterminationandabilityhasclearlybeendisplayedintheoutcomeshehasachievedwithhistraining.In2009hewontheACTTraineeoftheyearawardintheTrainingandEducationExcellenceawardsandrepresentedACTintheNationalawards.Hisdedicationtocompletingtheoffsitelearningassignmentswasseeninthequalityofhisworkwhichputhimatthetopofhisclass.PeterhascontinuedontotheBuildingManagementdegreeattheUniversityofCanberra.

President’s LuncheonsPresident’sLuncheonsareoneoftheMasterBuilderskeyactivitiesontheeventcalendar.TheluncheonsarehostedbythePresidentoftheMasterBuilders,RossBarrett,andincludeapresentationfromaprominentGuestofHonour.TheGuestsofHonourincludeleadingpoliticiansandexecutiveofficersofFederalandACTgovernmentdepartments.

TheLuncheonsprovideanintimateforumfortwentygueststodiscusstopicalindustryissues.TheyareansuperbwayforMemberstonetworkwithkeyindustrystakeholdersandtokeepuptodatewithcurrentactivitieswithintheACT’sbuildingandconstructionindustry.


Master Builders association of the act & Controlled Entity

FINANCIALSTATEMENTS

FORTHEYEARENDED 30JUNE2010


stateMent BY MeMBers of the COUNCIL OF MANAGEMENT

......................................................................................

President

......................................................................................

Treasurer

Datedthis6dayofSeptember2010

WeRBarrettandSButt,beingtwomembersoftheCouncilofManagementoftheMasterBuilders’AssociationoftheACT,dostateonbehalfoftheCouncilthatintheopinionoftheCouncil:

(1) ThefinancialstatementsandnotescomplywiththeAustralianAccountingStandards,mandatoryprofessionalreportingrequirementsandotherauthorativepronouncementsoftheAustralianAccountingStandardsBoard;

(2) ThefinancialstatementsandnotescomplywiththereportingguidelinesoftheIndustrialRegistrar;

(3) Thefinancialstatementsandnotesgiveatrueandfairviewofthefinancialperformance,financialpositionandcashflowsofthereportingunitforthefinancialyeartowhichtheyrelate;

(4) AtthedateofthisreporttherearereasonablegroundstobelievethattheMasterBuildersAssociationoftheACTwillbeabletopayitsdebtsasandwhentheyfalldue;and

(5) Duringthefinancialyeartowhichthefinancialreportrelatesandsincetheendofthatyear:

(i) MeetingsoftheCouncilwereheldinaccordancewiththerulesoftheorganisation;and

(ii) ThefinancialrecordsofthereportingunithavebeenkeptandmaintainedinaccordancewiththeRAOScheduleandtheRAORegulations;and

(iii) TheinformationsoughtinanyrequestofamemberoftheorganisationoraRegistrardulymadeundersection272oftheRAOSchedulehasbeenfurnishedtothememberortheRegistrar;and

(iv) TherehasbeencompliancewithanyorderforinspectionoffinancialrecordsmadebytheCommissionundersection273oftheRAOSchedule.

SignedinaccordancewitharesolutionoftheMembersoftheCouncilofManagementpassedon6September2010.


Report on the Financial ReportWehaveauditedtheaccompanyingfinancialreportoftheMasterBuilders’AssociationoftheACTandcontrolledentity(theassociation)whichcomprisesthestatementoffinancialpositionasat30June2010andthestatementofcomprehensiveincome,statementofchangesinequityandstatementofcashflowsfortheyearendedonthatdate,asummaryofsignificantaccountingpoliciesandotherexplanatorynotesandthestatementbymembersoftheCouncilofManagement(theCouncil).

Council’s Responsibility for the Financial ReportThecounciloftheassociationisresponsibleforthepreparationandfairpresentationofthefinancialreportinaccordancewithAustralianAccountingStandards(includingtheAustralianAccountingInterpretations)andtheAssociationsIncorporationAct1991(ACT).Thisresponsibilityincludesdesigning,implementingandmaintaininginternalcontrolrelevanttothepreparationandfairpresentationofthefinancialreportthatisfreefrommaterialmisstatement,whetherduetofraudorerror;selectingandapplyingaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.

auditor’s ResponsibilityOurresponsibilityistoexpressanopiniononthefinancialreportbasedonouraudit.WeconductedourauditinaccordancewithAustralianAuditingStandards.TheseAuditingStandardsrequirethatwecomplywithrelevantethicalrequirementsrelatingtoauditengagementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialreportisfreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialreport.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialreport,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialreportinordertodesignauditproceduresthatareappropriateinthecircumstances,

butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.AnauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebytheCouncil,aswellasevaluatingtheoverallpresentationofthefinancialreport.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

IndependenceInconductingouraudit,wehavecompliedwiththeindependencerequirementsofAustralianprofessionalethicalpronouncements.

auditor’s Opinion Inouropinion:

ThefinancialreportoftheMasterBuilders’AssociationoftheACTandcontrolledentityisinaccordancewithAssociationsIncorporationsAct1991(ACT)andtheWorkplaceRelationsAct1996including:

i. givingatrueandfairviewoftheassociation’sfinancialpositionasat30June2010andofitsperformanceanditscashflowsfortheearendedonthatdate;and

ii. complyingwithAustralianAccountingStandards(includingAustralianAccountingInterpretations)andIncorporationsAct1991(ACT).

A.B.Papps,

WalterTurnbull,abusinessunitofPricewaterhouseCoopers,

44SydneyAvenue,

BartonACT2600

Datedthis 7dayofSeptember2010

indePendent audit rePort TO THE MEMBERS


Consolidated Group Parent Entity

Note2010

$

2009

$

2010

$

2009

$

Revenue 2 9,060,654 11,450,567 3,142,052 5,907,188

Employee benefits expense (5,699,731) (5,763,607) (1,359,314) (1,314,805)

Depreciation and amortisation expense 3 (352,732) (194,630) (293,931) (128,657)

Rent expense (30,226) (121,615) (30,226) (121,615)

Meetings and seminars (13,467) (9,005) (13,062) (8,811)

Printing, postage and stationery expense (204,239) (155,445) (117,552) (101,847)

Subscriptions (137,880) (115,103) (130,912) (113,627)

Consultant expense (576,929) (577,298) (243,796) (232,622)

Motor vehicle expense (80,462) (96,237) (62,000) (71,861)

Donations and sponsorship (11,700) (9,500) (8,000) (7,000)

Building awards expense (336,260) (306,075) (336,260) (306,075)

Worker’s compensation expense (217,765) (325,296) (10,873) (12,391)

Operating lease expense 3 - (3,967) - -

Insurance expense (62,637) (62,092) (34,634) (33,571)

Other expenses (596,841) (705,166) (302,794) (423,978)

Profit from operations 739,785 3,005,531 198,698 3,030,328

Net loss on revaluation of non-current assets - (368,301) - (368,301)

Total comprehensive income for the year

739,785 2,637,230 198,698 2,662,027

Total comprehensive income attributable to members of the entity

739,785 2,637,230 198,698 2,662,027

stateMent of coMPrehensiVe incoMe FOR THE YEAR ENDED 30 JUNE 2010



Note2010

$

2009

$

2010

$

2009

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 6 2,758,376 2,062,287 1,270,124 1,291,279

Trade and other receivables 7 1,260,842 1,723,512 393,571 1,051,397

Inventories 8 2,052 2,233 2,052 2,233

Other financial assets 9 620,000 - 620,000 -

Other current assets 10 47,524 424,837 (33,002) 366,354

TOTAL CURRENT ASSETS 4,688,794 424,837 2,252,745 366,354

NON-CURRENT ASSETS

Trade and other receivables 7 8,958 8,958 8,958 8,958

Property, plant and equipment 11 8,540,289 8,723,126 8,376,128 8,525,116

Intangible Assets 12 50,459 59,361 50,459 59,361

Other non-current assets 10 4,545 4,545 4,545 4,545

TOTAL NON-CURRENT ASSETS 8,604,251 8,795,990 8,439,090 8,597,980

TOTAL ASSETS 13,293,045 13,008,859 10,692,835 11,309,243

CURRENT LIABILITIES

Trade and other payables 13 1,414,187 1,806,528 805,731 1,555,356

Short-term provisions 14 66,230 143,339 52,218 131,550

Other current liabilities 15 36,551 27,758 36,551 27,758

TOTAL CURRENT LIABILITIES 1,516,968 1,977,625 894,500 1,714,664

NON-CURRENT LIABILITIES

Long-term provisions 14 25,492 20,434 25,492 20,434

Other non-current liabilities 15 500,000 500,000 500,000 500,000

TOTAL NON-CURRENT LIABILITIES 525,492 520,434 525,492 520,434

TOTAL LIABILITIES 2,042,460 2,498,059 1,419,992 2,235,098

NET ASSETS 11,250,585 10,510,800 9,272,843 9,074,145

EQUITY

Retained earnings 10,728,977 9,989,192 8,751,235 8,552,537

Reserves 23 521,608 521,608 521,608 521,608

TOTAL EQUITY 11,250,585 10,510,800 9,272,843 9,074,145

stateMent of financial Position AS AT 30 JUNE 2010


stateMent of chanGes in eQuitYFOR THE YEAR ENDED 30 JUNE 2010

Consolidated GroupRetained Earnings

$

Asset Revaluation Reserve

$

Total

$

Balance at 1 July 2008 5,522,209 889,909 6,412,118

Increase in equity due to consolidation

1,461,452 - 1,461,452

Profit attributable to members 3,005,531 - 3,005,531

Asset Revaluation - (368,301) (368,301)

Balance at 30 June 2009 9,989,192 521,608 10,510,800

Profit attributable to members 739,785 - 739,785

Asset revaluation - - -

Balance at 30 June 2010 10,728,977 521,608 11,250,585

Parent EntityRetained Earnings

$

Asset Revaluation Reserve

$

Total

$

Balance at 1 July 2008 5,522,209 889,909 6,412,118

Profit attributable to members 3,030,328 - 3,030,328

Asset revaluation - (368,301) (368,301)

Balance at 30 June 2009 8,552,537 521,608 9,074,145

Profit attributable to members 198,698 - 198,698

Asset revaluation - - -

Balance at 30 June 2010 8,751,235 521,608 9,272,843



Note2010

$

2009

$

2010

$

2009

$

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from ordinary activities 9,662,303 8,991,487 3,434,770 3,967,023

Interest received 55,143 125,030 33,029 98,153

Payments to employees and suppliers (8,868,754) (7,699,739) (3,356,846) (2,226,330)

Net cash provided by operating activities 16 848,692 1,416,778 110,953 1,838,846

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of property, plant and equipment

50,454 3,277,273 33,635 3,250,000

Purchase of property, plant and equipment (203,057) (5,408,770) (165,743) (5,293,107)

Net cash (used in) investing activities (152,603) (2,131,497) (132,108) (2,043,107)

Net increase/(decrease) in cash held 696,089 (714,719) (21,155) (204,261)

Cash and cash equivalents at beginning of financial year

2,062,287 1,495,540 1,291,279 1,495,540

Increase in cash and cash equivalents at beginning of financial year due to consolidation

- 1,281,466 - -

Cash and cash equivalents at end of financial year

6 2,758,376 2,062,287 1,270,124 1,291,279

stateMent of cash floWs FOR THE YEAR ENDED 30 JUNE 2010


50 year MembersAndersonGA&SonPtyLtd

ModernPlasterPtyLtd

40 year MembersBoralCountryConcrete&Quarries

35YearMembers

AndersonHoldingsPtyLimited

AndrioloR&APtyLtd

ProjectCoordination(Australia)PtyLtd

30 year MembersCercolConstructionServicesPtyLtd

JohnHindmarsh(ACT)PtyLtd

25 year MembersBelconnenConcretePtyLtd

CSRGyprock

DouglasJoineryPtyLtd

ElvinGroupPtyLtd

Newham’sHardware

OnesteelReinforcingPtyLtd

T.OK.CarpentryAndPartitioning

20 year MembersAMurray&Sons(ACT)PtyLimited

ABAConstructionManagers

BALentferBuildingContractor

BoralRoofing

BrownConsulting(ACT)PtyLtd

CardnoYoung

CashmereCA&LJ

CBRichardEllisPtyLtd

ChapmanConstructionsCanberraPtyLtd

DSBLandscapeArchitects

Eastcliff

ErnSmithBuildingSupplies

FAWBuilding&RuralSupplies

HansonConstructionMaterials

HomelineBuilding&Design

HughesTrueman

JamesHardieAustraliaPtyLtd

Madison

ManteenaPtyLtd

May&RussellArchitectsPtyLtd

NHatzidoulis&Associates

O’ConnorHarris&Co

PremierHomes(ACT)PtyLtd

QProjects

RiderLevettBucknallPtyLtd

RobinsonBuildingGroupPtyLtd

SolidConstructionsPtyLtd

StGeorgeBankLimited

TheVillageBuildingCo.Limited

ThirlstonFloorCoverings

ViridianNewWorldGlass

WTPartnership

WalterPintoPtyLtd

WestRTilesPtyLtd

WodenContractorsPtyLtd

MEMBERSHIP ANNIVERSARIES

Master Builders Association of the ACT1 Iron Knob St, Fyshwick ACT 2609

PO Box 1211, Fyshwick ACT 2609Tel: (02) 6247 2099 Fax: (02) 6249 8374

Email: [email protected] Web: www.mba.org.au

Documents

2009 - 10 Master Builders Association of the ACT Annual Report