on-site insight edition 1 - 2011

12
Under the proposed codification of the Change of Use framework announced by the Government in 2009, a number of changes will be required, including a name change to Lease Variation Charge (LVC) to more accurately reflect that some CUCs do not result from a change of use but, for instance, an increase in the gross floor area. IMPLEMENTATION DATE NOT ANNOUNCED Although the Government made no formal statement on releasing the report and has yet to announce its planned timing and implementation, a statement on the ACT Treasury website, where the report was published, said “The Government remains committed to codification of the CUC to improve efficiency and transparency in the planning system.” The Macroeconomics report says the Government has lost significant revenue through charging fixed fees for residential redevelopments, including dual occupancy ($5,000), townhouse ($2,500) redevelopments and unit redevelopments ($1,500) irrespective of location. Money has also been lost by the ACT by allowing offsetting onsite/offsite user charges, it says. It says that charges under a betterment principle are appropriate. The name ‘Change of Use Charge’ is to be changed to ‘Lease Variation Charge’ to more accurately reflect the range of transactions covered, as originally proposed by the Government in 2009. The schedule of fees is to be based on a market value of land and exclude associated improvements, onsite and offsite costs. The cost of mandatory offsite works associated with a redevelopment should be accounted for separately and not offset against the Lease Variation Charge. ANNUAL REVIEW The report says there should be no right to appeal the codified schedule of changes, which should be reviewed annually. It says the codified system for determining the LVC should be introduced as soon as possible through a phased in transitional period, with the Government considering phasing codification through changing the rate of remission – for example, 75 per cent in the first year, 50 per cent in the second year and 25 per cent in the final year; The Government would retain the right to partially or wholly waive the LVC. Under codification, schedules of codified values will be released for implementation on 1 July each year. The schedules will cover residential, commercial and industrial redevelopment in the ACT. For residential codification, it is proposed that: a schedule of fees will apply for all ACT suburbs; the fees will be calculated using a market rate index based on land values, calculated by the Australian Valuation Office (AVO), averaged over three years; and fees will be categorised according to dual occupancy developments and medium/high density developments. For commercial and industrial codification, it is proposed to use a rate per square metre of gross floor area for commercial and industrial zones within the Territory Plan. Particular cases will require the input of a certified practising valuer, to determine the “before” and “after” values to determine the amount of LVC payable. Some identified lease variations will attract a set fee. It is proposed to establish a committee to review the codes prior to their release each year. The committee would include representatives from the AVO, the Australian Property Institute (API) and the ACT Government. There will be no right to appeal under codification. However, in special cases where codification does not apply, the current appeals process through the ACT Civil and Administrative Tribunal will be used. CHANGE OF USE CHARGE CHANGES TO PROCEED ACT Government EDITION 1-2011 Master Builders Association of the ACT 1 Iron Knob St, Fyshwick ACT 2609 PO Box 1211, Fyshwick ACT 2609 Tel: (02) 6247 2099 Fax: (02) 6249 8374 Email: [email protected] Web: www.mba.org.au MASTER BUILDERS EXECUTIVE COUNCIL President – Ross Barrett Treasurer – Simon Butt Chair, Commercial Builders’ Sector Council – Valdis Luks Chair, Suppliers and Subcontractors’ Sector Council – Grace Ferreira Chair, Residential Builders’ Sector Council – David Howarth Chair, Civil Contractors’ Sector Council – David Jones Chair, Professional Consultants’ Sector Council – Hans Sommer MASTER BUILDERS MANAGEMENT TEAM Executive Director – John Miller Deputy Executive Director – Jerry Howard Director Industrial Relations – Mike Baldwin Senior Management Accountant – Louise MacCallum Senior Manager - Marketing & Membership Services – David Leitch MASTER BUILDERS GROUP TRAINING General Manager – Wendy Tengstrom

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Page 1: On-Site Insight Edition 1 - 2011

Under the proposed codification of the Change of Use framework announced by the Government in 2009, a number of changes will be required, including a name change to Lease Variation Charge (LVC) to more accurately reflect that some CUCs do not result from a change of use but, for instance, an increase in the gross floor area. IMPLEMENTATION DATE NOT ANNOUNCED

Although the Government made no formal statement on releasing the report and has yet to announce its planned timing and implementation, a statement on the ACT Treasury website, where the report was published, said “The Government remains committed to codification of the CUC to improve efficiency and transparency in the planning system.”

The Macroeconomics report says the Government has lost significant revenue through charging fixed fees for residential redevelopments, including dual occupancy ($5,000), townhouse ($2,500) redevelopments and unit redevelopments ($1,500) irrespective of location. Money has also been lost by the ACT by allowing offsetting onsite/offsite user charges, it says.

It says that charges under a betterment principle are appropriate.

The name ‘Change of Use Charge’ is to be changed to ‘Lease Variation Charge’ to more accurately reflect the range of transactions covered, as originally proposed by the Government in 2009.

The schedule of fees is to be based on a market value of land and exclude associated improvements, onsite and offsite costs. The cost of mandatory offsite works associated with a redevelopment should be accounted for separately and not offset against the Lease Variation Charge.

ANNUAL REVIEW

The report says there should be no right to appeal the codified schedule of changes, which should be reviewed annually.

It says the codified system for determining

the LVC should be introduced as soon as possible through a phased in transitional period, with the Government considering phasing codification through changing the rate of remission – for example, 75 per cent in the first year, 50 per cent in the second year and 25 per cent in the final year;

The Government would retain the right to partially or wholly waive the LVC.

Under codification, schedules of codified values will be released for implementation on 1 July each year. The schedules will cover residential, commercial and industrial redevelopment in the ACT.

For residential codification, it is proposed that:

a schedule of fees will apply for all ACT suburbs;

the fees will be calculated using a market rate index based on land values, calculated by

the Australian Valuation Office (AVO), averaged over three years; and

fees will be categorised according to dual occupancy developments and medium/high density developments.

For commercial and industrial codification, it is proposed to use a rate per square metre of gross floor area for commercial and industrial zones within the Territory Plan. Particular cases will require the input of a certified practising valuer, to determine the “before” and “after” values to determine the amount of LVC payable.

Some identified lease variations will attract a set fee.

It is proposed to establish a committee to review the codes prior to their release each year. The committee would include representatives from the AVO, the Australian Property Institute (API) and the ACT Government.

There will be no right to appeal under codification. However, in special cases where codification does not apply, the current appeals process through the ACT Civil and Administrative Tribunal will be used.

CHANGE OF USE CHARGE CHANGES TO PROCEEDACT Government

Ed

ition

1-2011

Master Builders Association of the ACT1 Iron Knob St, Fyshwick ACT 2609PO Box 1211, Fyshwick ACT 2609

Tel: (02) 6247 2099Fax: (02) 6249 8374

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

MAsTEr BuildErs ExECuTivE CounCilPresident – Ross Barrett Treasurer – Simon Butt Chair, Commercial Builders’ Sector Council – Valdis Luks Chair, Suppliers and Subcontractors’ Sector Council – Grace Ferreira Chair, Residential Builders’ Sector Council – David Howarth Chair, Civil Contractors’ Sector Council – David Jones Chair, Professional Consultants’ Sector Council – Hans Sommer

MAsTEr BuildErs MAnAgEMEnT TEAMExecutive Director – John MillerDeputy Executive Director – Jerry HowardDirector Industrial Relations – Mike BaldwinSenior Management Accountant – Louise MacCallumSenior Manager - Marketing & Membership Services – David Leitch

MAsTEr BuildErs group TrAining General Manager – Wendy Tengstrom

Page 2: On-Site Insight Edition 1 - 2011

It is now common practice for water tanks to be installed on all new residential properties. Some of these are above-ground tanks, some are designed to be installed in the ground and others are installed under the sub-floor areas.

All the above have specific design issues that must be followed. A recent site inspection revealed some major structural issues associated with the installation of these tanks.

Firstly, if a tank is designed to be installed below ground, then site-specific matters must be considered, such as proximity of adjacent buildings, proximity of adjacent boundaries and the likely surcharge load that can be imposed on the walls of the tank.

Recent practice would suggest that some standard designs may have been adopted and installed by builders and hydraulic contractors, without any due consideration being given to the specific conditions that affect the tank on that site.

Builders and certifiers must be satisfied that the design is suitable for the given site condition and certified for that purpose by a professional engineer.

Secondly, tanks that are installed in sub-floor areas must have adequate provision for overflow. We recently observed a situation whereby two large tanks were installed in a sub-floor area during the building of a new residence, without adequate consideration being given to the stability of the excavation that was undertaken to accommodate these tanks and adequate provision for overflow and surcharge from the overflowing tanks. The resultant water seepage has caused the sub-floor area to subside and extensive remedial work will be required to stabilise the building structure. Both of these tanks were to be installed above-ground to the rear of the building and obviously, during the construction process, a decision was made to relocate the tanks to the sub-floor area without due consideration being given to the impact of excavation and stability of the adjacent embankment.

Builders and certifiers must be satisfied that any changes that are made, that are likely to impact on the structural stability of the building, must be carefully considered, properly designed and certified to ensure structural sufficiency and minimise the need for future remedial works.

BUILDERS AND CERTIFIERS PLEASE NOTE:Water Tanks and Associated Onsite Issues

Tune up Canberra saves greenhouse gases – and dollars It’s win-win for building owners and the environment when owners take advantage of the ACT Government’s Tune Up Canberra grant scheme to make their buildings more sustainable. The Australian Trucking Association’s Minter Ellison Building is using its grant to fund improvements to the air-conditioning and lighting systems to bring the building to 4.5 plus stars and attract more government agency tenants.

The six buildings that received funding in the latest grant round expect to save 1.5 million kilowatt hours (kWh) a year in electricity and almost a one million megajoules (MJ) in gas a year.

Tune Up Canberra grants are available, with round four of applications open until 11 March and round five opening 11 April.

Eligible buildings must be commercial buildings with more than 500m2 in gross floor area.

For more information including application forms, eligibility criteria and conditions, see:

www.actpla.act.gov.au/tuneupcanberra or the ACT Grants Portal www.grants.act.gov.au.

Left Image: shows two large water tanks with an inlet pipe 100mm dia. and a connection pipe 50mm dia. between the two tanks. Can you pick the potential problem with this design?

Right Image: shows a large water tank excavated adjacent to the sub-floor embankment subsidence due to water overflow from tank affecting the stability of the supporting brick piers.

Page 3: On-Site Insight Edition 1 - 2011

CONSTRUCTION SAFETY CAMPAIGN FOR SAFER WORKERSWorkSafe ACT is about to launch two construction industry safety campaigns focusing on work safety matters on residential and commercial construction sites.

WorkSafe ACT inspectors will undertake inspections and review information over the coming months relating to work safety in both the local housing construction sector and medium to large commercial construction companies in the ACT.

WorkSafe Commissioner Mark McCabe said work safety was of vital importance to every worker and the safety procedures of employers should always be up-to-date and of the highest standard.

He said the first campaign would focus on the residential housing construction sector in the ACT.

“This sector is of vital importance to the ACT and it is imperative that it is conducted both efficiently and safely,” Mr McCabe said.

“While inspectors will consider all safety matters, five specific issues that will be targeted are:

• fall prevention

• provision of amenities for workers

• site fencing

• site maintenance or house keeping

• construction induction cards

The second campaign will involve an examination of safety management systems implemented by medium to large commercial construction companies in the ACT.

“This is to ensure that these companies are taking all of the necessary steps to adhere to the Territory’s work safety laws,” Mr McCabe said.

“This campaign will involve targeted inspections to ensure that these systems are being complied with on local work sites.

“These campaigns underline the importance of work safety as a constant right and responsibility for all workers.

“I encourage the construction industry to take this opportunity to strengthen their efforts to improve safety in their workplaces.”

For further information on work safety, visit www.ors.act.gov.au

Home bld contract - bottom page.

Changes To The MasTer buIlders assoCIaTIon aCT hoMe buIldIng ConTraCT WITh regard To dIspuTe resoluTIon

The Dispute Resolution process in clause 28 and 29 has been amended and the February edition Version 11 2011 of the Contract, will include a revised dispute determination process.

When building disputes arise between the owner and the builder, it is important that these disputes are resolved in a timely manner without the need for recourse to costly legal action.

Clause 28 specifies that the first step to resolving any dispute must always be between the builder and the owner. If the dispute cannot be resolved, then Expert Determination will now be conducted under the terms of this contract.

The purpose of replacing the existing clause 29 with a new clause 29, is for the expeditious resolution of disputes. Where the parties do not agree as to the resolution of the dispute, the parties will now be subject to resolution by Expert Determination. The Expert will be appointed by an Authorised Nominating Authority, as listed in the Contract, at the request of either party. The procedural rules and a timetable for the determination of the dispute are outlined in the Contract.

Page 4: On-Site Insight Edition 1 - 2011

The Master Builders Association (ACT) has broadly welcomed changes to the ACT Workers Compensation Act that have been proposed by the ACT Government.

An exposure draft of proposed changes to ACT workers compensation arrangements was published in October, with legislation for the changes expected to be introduced to the ACT Legislative Assembly this year.

The MBA in its submission to the Government on the exposure draft said, “The Act, as currently structured, is badly in need of reform. The amendments go some way to restoring a balance between the necessary fairness in access and compensation and cost to business”.

“In achieving this balance the amendments rightly focus on service providers, recognising that the costs associated place great pressure on the system. The introduction of a more structured dispute resolution process is a very positive step towards reasonable outcomes whilst reducing costs, which, unless addressed, threaten to bring the system to a grinding halt”.

“In summary, Master Builders ACT strongly supports the intent of the proposed legislation and urges the government to stay the course in the face of what we anticipate will be a barrage of opposition from various vested interests. Our support is on the public record and we welcome the opportunity to add to that in the months that follow, prior to the legislation being debated in the Assembly.”

Under the proposed changes a new framework will be established for workers compensation claims, focusing on the compensation of permanent impairment (as opposed to permanent loss) in the

event of a compensable injury.

Key features of the proposed Framework include:

- creation of a Permanent Impairment Assessment Panel, comprising independent medical specialists trained and approved in the use of the approved impairment guidelines;

- assessment of permanent impairment based on the American Medical Association Guides to the Evaluation of Permanent Impairment and the NSW WorkCover Guides for the Evaluation of Permanent Impairment

- creation of a streamlined process to obtain a single, independent assessment of a worker’s possible permanent impairment; and

- determination of compensation benefits by Approved Insurers (or Self-insurers) within statutory timeframes and limits, based upon clear, independent medical evidence.

The draft bill proposes the establishment of alternative dispute resolution mechanisms as compulsory steps on the pathway to formal litigation (for a damages claim) or arbitration (for workers’ compensation disputes). It would require parties to:

- participate in a compulsory settlement conference within 3 months of having filed an application for arbitration or having commenced an action for damages; and

- exchange mandatory final offers of settlement in connection with common law damages claims, prior to proceeding to hearing.

The compulsory settlement conference could be conducted simply between the parties to the claim and their legal representatives or with the assistance of an independent conciliator where the parties wish. The proposals in effect codify the existing informal practice in the ACT

The new ACT Scheme is a “return to work” scheme that provides a

framework of rehabilitation, care and compensation to assist injured workers overcome the impact of an injury and make a full return to employment and life. The exposure draft proposes amendments to rebalance the ACT Scheme and introduce a threshold that injured workers will need to satisfy in order to pursue common law damages:

For claims related to physical injuries – 15 per cent or more WPI;

For claims related to psychological injuries – 20 per cent or more WPI.

Workers who satisfy the threshold will be entitled to uncapped damages as awarded by the Court.

Those workers whose degree of WPI is less than the relevant threshold, will remain within the statutory framework and continue to receive the rehabilitation, return to work and benefit support which it facilitates. These workers will remain entitled to lump sum compensation.

The exposure draft Bill proposes substantial increases in specific statutory benefits compared to the existing statutory scheme:

Maximum lump sum payable – increase from $126,600 to $220,000;

Maximum death benefits – increase from $150,000 to $450,000; and

Maximum funeral benefits – increase from $4,000 to $9,000.

These maximum benefits are available to injured workers under the statutory framework, meaning that they can be claimed and paid without the expense or delay of having to commence Court-related action.

The exposure draft proposes changes to allow the Minister to determine the maximum expenses and fees that may be charged by lawyers in connection with the Scheme.

It regulates the advertising of legal services in relation to compensation claims.

ACT Government proposes changes to Workers Compensation Act.

Page 5: On-Site Insight Edition 1 - 2011

In 2010, the ACT Legislative Assembly passed the Construction Occupations Legislation

Amendment Act 2010 (No 2). The Act creates a new occupational licence in the ACT for building assessors. The first classes of licence to be introduced will be for residential energy efficiency assessors undertaking assessments for regulatory purposes. These will be energy efficiency certificates for building work including alterations and additions and energy efficiency rating statements for ratings disclosed at sale and lease of property. All requirements for preparation of energy efficiency statements have been moved under the Construction Occupations (Licensing) Act 2004 (COLA). The energy efficiency assessment provisions affect the:

· Building Act 2004

· Civil Law (Sale of Residential Property) Act 2003

· Construction Occupations (Licensing) Act 2004

· Residential Tenancies Act 1997

Commencement

Licensing for energy efficiency assessors under COLA will commence on 1 March 2011.

From this date all assessments for compliance with the Building Code of Australia (BCA) and the ACT Appendix, the Civil Law (Sale of Residential Property) Act 2003 and the Residential Tenancies Act 1997 must be produced by an appropriately licensed assessor. For the first 12 months after licensing commences, registered ACT House Energy Rating (ACTHERS) assessors will be deemed to be licensed under COLA. However this transition applies only to assessors operating ACTHERS authorized software i.e. first generation software used for sale of property ratings. ACTHERS assessors that also use second generation software must hold a licence to continue providing regulatory assessments for building work.

ACTHERS assessors covered by the transition period can apply for a licence at any time during that period. This transition period expires after 12 months, after which time all ACTHERS assessors will need to hold a licence issued under COLA.

Classes of Licence

There will be two classes of licence for energy efficiency assessors:

• class A – assessors can undertake assessments from on-site inspections (for example alterations/additions under the BCA where part or all of and existing dwelling is assessed, and sale and lease of property)

• class B – assessors may only perform assessments of buildings off-the-plan.

Assessors performing on-site and off-plan assessments will not need to hold both classes of licence as a class A licence also allows the holder to do anything allowed under a class B licence.

Software endorsements

A licence can only be granted to a person eligible to be endorsed to operate at least one of the authorised software packages for the class of licence they are applying for.

Endorsements will be available for tools used for the BCA and sale of property. A full list of software endorsements will be provided with information about the application process. Licensed assessors can apply to add endorsements to their licence at any time.

Qualifications

The schedule of mandatory qualifications for class A and B licences applicants will be finalised shortly. The required qualifications will be based on earlier public consultation and feedback from industry.

Class A and B

Pre-requisite qualifications both classes of licence will be:

· a minimum certificate IV level qualification in building, or a building design-related, or environmental and other technical field that includes sufficient knowledge of residential building plans, building energy use and energy efficiency, particularly the effect of climate, materials and design on building performance; and

• satisfactory completion of training in the software the applicant wishes to be endorsed for; and

• satisfactory completion of the 32 hour short course in Building Thermal Performance Assessment (Residential); or

• a current ACTHERS registration; or

• a current ABSA accreditation (applicants for a class B licence only)

Class A licence

Additional skills are required to assess a building as-constructed. It is expected that a class A assessor is able to gather all information required to perform a rating on-site without assistance. Minimum competencies for class A assessors will initially be:

· BCGSV5001A — Assess the construction of domestic scale buildings;

· BCGSV5006A — Assess construction faults in residential buildings; and

· BCGSV5015A — Assess structural requirements of domestic scale buildings or

Building Energy Assessor LicensingInformation Sheet

Continues next page >>

Page 6: On-Site Insight Edition 1 - 2011

· Equivalent competencies in the physical identification of building materials, construction methods and faults as they apply to energy efficiency ratings.

Insurance

Applicants will need to show they hold adequate professional indemnity insurance to be eligible for a licence. Insurance must provide:

(a) indemnity against claims for breach of professional duty as a building assessor; and

(b) a minimum limit of indemnity of $1,000,000 for a single claim.

Regulations for energy efficiency assessors, rating statements and certificates

The majority of regulations for energy efficiency assessors will be in a new Code of Practice to be made under COLA. The Code will include administrative requirements such as submission of documents, parameters for validity of ratings, technical protocols for carrying out assessments, requirements and forms for certificates and energy efficiency rating statements.

The Code of Practice was released in January 2011. Further information sessions on obligations under The Code will be held for assessors prior to the start of licensing.

From 1 March 2011 if an energy efficiency certificate is used to demonstrate compliance with the BCA, the certificate will form part of the required documents for building approval applications in accordance with the Building Act 2004.

Conflict of interest

The conflict of interest provisions for sale and lease of property ratings will continue, with additional requirements for BCA ratings used for disclosure. There are new provisions in the Building Act 2004 relating to assessments for new buildings.

Construction Occupations (Licensing) Act 2004

Energy efficiency assessors will be subject to the same regulatory framework in place for all construction occupations in the ACT. COLA contains general provisions for:

· Ongoing eligibility for licence

· Compliance auditing

· Rectification orders

· Displaying a licence number in advertising

· Complying with Codes of Practice

· Disciplinary action

· Demerit points

Disciplinary Action

The Construction Occupations Registrar can take a number of actions against licensees when they breach regulations, including to:

· Issue a reprimand

· Require a licensee to undergo further training

· Impose a condition on a licence

· Impose a financial penalty up to $1000

· Suspend, cancel and disqualify a licence holder

· Refer the matter to the ACT Civil and Administrative Tribunal for hearing

Demerit point scheme

COLA also contains a demerit point scheme. This is an alternative to the disciplinary scheme but disciplinary action may be taken if a licence holder reaches 15 demerit points. Licensees can accrue 15 points over 3 years and will receive a warning notice at 10 points.

Grounds for demerit points for energy efficiency assessors are being developed alongside the code of practice. There will be a separate section in the legislation for energy efficiency assessors.

Other occupations such as builders and building certifiers may also incur demerit points or disciplinary action in relation to energy efficiency assessments if they have not complied with the new regulations.

Applications

Applications opened in late January. Registered assessors and people included on the licensing information mailing list will be informed by email when applications open. It will also be announced on the ACTPLA website.

Fees

Fees for licensing and administration are set on cost-recovery principles. Fees applicable to

Licensing and Applications Application fee - current ACTHERS registration, NatHERS accreditation (ABSA), other COLA licence Application fee - all other applicants Annual licence fee (including renewals) Additional software endorsement Lodgement of energy efficiency ratings and certificates (replaces current EER lodgement fee of $17.20) Sale of property/residential tenancy rating Building Act – class 2 & 4 buildings (initial lodgement and up to 5 revisions) Building Act – class 1 - (initial lodgement and up to 5 revisions) Re-lodgement fee (second and subsequent ratings for sale or lease, relodging after requirement for rectification, and 7th and subsequent rating for the Building Act)

Cost

$160

$200 $250 $50 $27 $25 $35 $35

Page 7: On-Site Insight Edition 1 - 2011

Further InformationIt is recommended that assessors familiarise themselves with the legislation they will be operating under. All ACT legislation is available on the ACT Legislation Register.

ACT Legislation Register www.legislation.act.gov.au

Updates will also be provided on the ACTPLA website www.actpla.act.gov.au

For any question please contact [email protected]

i

Can companies be licensed? No. Licences will only be granted to individuals.

What if I haven’t actually had formal training in the software I have been using to rate new building work? You will need to arrange and complete appropriate training before you can be granted a licence. The Registrar is able to exercise discretion on qualifications; however you may need to undertake a skills assessment. This is most likely to be the same assessment included in the recognised NatHERS course so it is recommended that you enrol in the software component of the course (or the full course if you have not completed the theory module and are not a registered ACTHERS assessor)

I don’t have the competencies listed for on-site assessors. Does this mean I can’t get a class A licence? Not necessarily. At present there are no units that are tailored to the skills needed to be an energy efficiency assessor for assessing thermal performance of existing dwellings. The units chosen represent a comprehensive knowledge of materials, construction and faults, which many assessors will already have completed as part of their pre-requisite qualifications. These units are a guide to what you will need to demonstrate: that you are able to identify different materials and methods of construction used in residential buildings (class 1 and 2 buildings), and construction faults and building flaws that would affect the energy efficiency of the building. For people who have no relevant training or wish to upgrade their skills, ACTPLA is also considering developing gap training that will focus specifically on skills for on-site energy assessors. To register your interest in the training please email [email protected]

I currently assess alterations and additions to existing houses. What type of licence do I need? If the assessment includes a NatHERS rating incorporating any part of an existing building you will need a class A licence. You cannot rely on house plans to assess the existing part of a building and will need to verify the information needed for the rating by visiting the site.

You do not need a licence to complete the BCA glazing calculator.

What if I have made an application but haven’t been granted a licence by 1 March 2011 – can I keep working? No, not unless specifically confirmed by ACTPLA. From 1 March 2011 only licensed or assessors deemed to be licensed under the transition period will be able to offer the service.

It will also be illegal under the Building Act for a building certifier to accept a rating that has not been produced by a licensed assessor and in accordance with the code of practice.

The application process will open early in the year to allow plenty of time for applications to be assessed. It will be the responsibility of each assessor to make sure they lodge their application well before the commencement date.

What happens if my application is refused? You will be able to request a review of the decision. There are a number of reasons why you may not be granted a licence. For example, you are not qualified, you hold another COLA licence that is suspended, or you do not meet general eligibility requirements relating to convictions for fraud or dishonesty offences. The Registrar may also place a condition on your licence or grant a lower level of licence than the one you applied for.

I have another COLA licence. Do I only get 15 demerit points across both licences? No. You are entitled to separate counts for each licence. However, if action is taken against one licence it may affect your building assessor licence.

Will ratings be audited? Yes. At least 5% of all ratings will be audited. This also means that 5% of each assessors work will be audited.

Does licensing mean that first generation software for sale of property ratings can no longer be used? Not at this stage. Transitioning from first generation software will be addressed after the implementation of the licensing system.

What happens to ratings produced before the licensing system started? Do they have to be redone? Ratings produced before licensing will be recognised under the new regulation. A building will only need to be re-assessed if the previous rating is no longer valid, accurate or current.

Frequently Asked Questions Q&A

Cost

$160

$200 $250 $50 $27 $25 $35 $35

Page 8: On-Site Insight Edition 1 - 2011

Trusses aT 900 CenTres or 600 CenTres?

TIMBER FRAMING

At our next Residential Sector Council meeting being held on 9th March, the issue of supporting a proposal to install roof trusses at 600 centres will be discussed. There currently appears to be general industry support for installing roof trusses at 600 centres on tile roofs in the ACT, which would bring us into line with the rest of Australia.

Apart from the benefits of associated design issues, the objective of installing trusses at 600 centres is that it minimises the risk of a person falling from heights when installing the trusses or working on the roof structure. It also minimises the need to implement additional control measures to prevent a person falling. The newly implemented National Codes of Practice (Prevention of Falls from Heights) states that workers who install roof members and work on roof framing, will be exposed to the risk of falling through the roof framing where there is no appropriate control measure in place to prevent the fall.

Consultation with residential builders indicates that the additional costs associated with installing trusses at 600 centres will be in the region of $3000 for the average house. This also includes the additional labour costs associated with installing the additional trusses.

How can these costs be minimised? Careful consideration at the truss design stage regarding the provision of additional support points, may minimise the need for larger framing members being used for girder trusses; thereby minimising the timber used to construct the trusses. Roof batten sizes can also be reduced in size to 38mm x 38mm or 25mm x 50mm hardwood battens can also be used. Using the 25mm battens will necessitate the need to use splayed weatherboards to support the valley gutter.

Members interested in participating in the discussion on this proposal, should attend the next MBA Residential Sector Council meeting to be held at 4pm on Wednesday 9th March.

Page 9: On-Site Insight Edition 1 - 2011

ACT CAPITAl WORKS OvERSIGhT ChANGES

“In an interview with The Canberra Times the Chief Minister said red tape and bureaucratic delays by his own agencies had worsened the ACT’s housing shortages and called for more timely delivery by his officials. “In opening up the whole brand new development front as we have at Molonglo, its taken five years from the time of the decision to the delivery of the land. “Quite frankly, we needed Molonglo two years ago and it has taken us five years. I just refuse to accept that that

is acceptable. He said that despite a review of the planning processes and introduction of an umbrella Land and Property Services agency, the system remains cumbersome. “In an environment where the Government’s number one priority has been the delivery of affordable housing we haven’t been able to do it in as timely a way as I would have liked in order to have met the pent-up demand that has bedevilled us for the past four or five years.

He said agencies had failed to coordinate and sequence activities appropriately.

Mr Stanhope said he expected the current Hawke Review of the ACT public service could recommend changes to the planning and property bureaucracy, and that he would be willing to make changes if they were recommended.

The ACT Government has announced it will adopt all recommendations of a review that has proposed increased oversight of ACT capital works projects. The review followed the collapse of the GDE Barton Highway overpass bridge in August 2010.

Chief Minister Jon Stanhope said the Government will strengthen its monitoring processes for the construction of capital works following a review of oversighting procedures for the bridge.

The report, by Mike Evans of Assurance Management Services, for TAMS, recommended the Department:

Strengthen the monitoring of verification of the design and construction of temporary works;

Address the particular items for improvement identified during the review; and in conjunction with industry establish and implement a strategy to advance the application of Quality Assurance on building and construction projects.

It said, “There are benefits in the continued general improvement to the capital works processes thereby engendering an environment for reducing the probability of incidents.”

The report said, “The review concluded that the basic processes for delivery of capital works projects are sound. However, there is scope for strengthening the monitoring of the verification of the design and construction of temporary works, in particular for critical activities, eg major formwork for bridge construction.

Mr Stanhope said all recommendations from the review would be adopted and a number had already been implemented. “Measures will be put in place to strengthen the monitoring and verification of the design and construction of formwork, such as formwork for bridge construction,” he said.

“These changes will further strengthen the ACT’s rigorous project delivery processes which have successfully delivered billions of dollars worth of capital works in recent years. “The Government is determined to do what it can to prevent similar accidents in the future,” Mr Stanhope said.

Among the recommendations adopted are additional audits of quality assurance compliance and more stringent checks and reviews of design and verification procedures.

A broader investigation into the cause of the bridge collapse is being prepared by WorkSafe ACT.

Mr Stanhope said the Government wants to make sure similar incidents do not happen again.

He said the review found room for improvement in monitoring temporary works like formwork built as support for concrete pours. “It’s not good enough just for a contractor to say well we’ve had our engineer look at the work and he’s verified or certified that it is sound.”

“So we will be putting in place a much more independent, objective set of criteria in relation to the checking and the verification.” Mr Stanhope says he will be adopting all the recommendations and future projects will be subject to additional audits and more stringent checks.

Stanhope blaStS land releaSe delayS Chief Minister Jon Stanhope has branded as “unacceptable” delays by

ACT bureaucrats in the release of land for building development. But the Government is yet to announce measures to overcome the delays.

Page 10: On-Site Insight Edition 1 - 2011

Did you know that suicide mortality rates from the Construction Industry are an alarming 75% higher than Australian male rates?

On the morning of Thursday 3 February OzHelp held a commemorative naming ceremony for their new premises in Tennant Street, Fyshwick. The David O’Bryan Offices are a tribute to the tragic loss which prompted Lorraine O’Bryan, David’s Mother, to investigate and pursue the issue of suicide throughout the building and construction industry.

The ceremony opened with a welcome from Chairman of the Board, Mr. Derek Volker, who opened by noting that “out of great tragedy and sadness, good things can develop”. He was speaking of the heartbreaking loss from which the OzHelp Foundation was born in 2001 after the Construction Industry was shaken by tragic suicides.

Mother of David O’Bryan, Ms. Lorraine O’Bryan persistently lobbied the Industry for some action to address the problem and to prevent further deaths. She has been the driving force behind the formation of OzHelp after identifing the significant problem of stress and suicide within the industry.

“I wanted apprentices not just to survive, but to thrive.” she said.

Chief Executive of the Department of Land & Property Services, Mr. David Dawes also made a formal presentation, saying that he was deeply honored to be here today to share this moment with Lorraine.

“It is absolutely fantastic to see the journey of OzHelp.” he said.

Mr. Glenn Baird of OzHelp said of the founders: “They’ve got a heart of gold and that passion really comes through in what they do for young people.”

A commemorative plaque was unveiled in the reception area of the premises, naming the building the ‘David O’Bryan Offices’.

For further information on the work of the OzHelp Foundation please visit www.ozhelp.org.au.

OzHelp building namingceremony for newDavid O’Bryan Officesin Fyshwick“

Clockwise from top left: David’s Mother Lorraine O’Bryan at the ceremony, David O’Bryan, the Fyshwick Office, Unveiling David’s plaque with Mrs O’Bryan and Mr David Dawes, Ozhelp signage.

c o m m u n i t y

Page 11: On-Site Insight Edition 1 - 2011

CHANGED GST RULES ON PROPERTy

The Federal Government has announced details of its proposed changes to the GST margin scheme that applies to property. The Government says the aim is to reduce compliance costs for a wide range of businesses involved in the building and property industry.

The Government has published a Discussion paper outlining the proposed changes, to take effect from 1 July 2012.

As now proposed, the changes to the margin scheme differ considerably from those initially outlined in the may 2010 Budget.

The Government says it has abandoned its original plan to replace the existing margin scheme for property transactions “with a set of principles”. Instead, it says,

“specific concerns with the margin scheme could be addressed through further amendments to the existing legislative framework.”

Rather than previously proposed changes the Government now plans

to restructure the margin scheme provisions to give prominence to the core provisions with exceptions set out separately and to insert objects clauses for the key provisions so that the intention is clear; and implement a minor technical amendment, effective from 1 July 2012, to remove an anomaly to allow an approved valuation of the land to be used for the purposes of calculating the margin on subdivided land.

Changes to the interaction of tax law partnerships with the margin scheme rules are being addressed as part of the Government’s earlier response to the Board of Taxation’s recommendation on the administration of the GST.

Federal Government Construction Occupations Legislation Amendment Act 2010 (No 2)

The Master Builders Association of the ACT would like to take this opportunity to welcome Jason Grieves to the organisation.

Prior to joining the Master Builders Jason was with the ACT Planning and Land Authority (ACTPLA) where his role was to conduct audits on builders for compliance with the Building Act 2004 and Building Regulations 2004.

Jason also handled a range of building complaints against licensed builders and certifiers where there was evidence of non-compliance with the Construction Occupations (Licensing) Act 2004 and the Constructions Regulations 2008. Jason is a licensed builder in the ACT and NSW. In his younger days Jason completed an apprenticeship with Concrete Constructions.

Jason’s title at the Master Builders Association is Technical Services Manager and his primary function will be to provide technical advice to members, assist members with dispute resolution and perform audits and liaise with Fidelity Fund members. Jason will also assist Jerry in developing and providing information and training sessions to members as required. Jason has gained extensive experience in the building regulatory environment and will be a valuable asset to the Master Builders in enhancing our service to members.

WELCOMING JASON GRIEVES TO THE MASTER BUILDERS ASSOCIATION OF THE ACT.

i n d u s t r y P r O F i L E

Bill and Mark Bowman discuss an on-site issue with Jerry Howard and Jason Grieves

Page 12: On-Site Insight Edition 1 - 2011

MILLION

// To Insert New Data Goto Object/Graph/Data• Copy and Paste Pivot Table Data into Data

$0

$30

$60

$90

$120

$150 New Homes

Multi Unit

Garages, Pools, Decks and Similar Structures

Commercial Building Work

Additions and Alterations (Residential)

Jan-11Dec-10Nov-10Oct-10Sep-10Aug-10Jul-10Jun-10May-10Apr-10Mar-10Feb-10

Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11Additions and Alterations (Residential) 4.29 8.52 3.96 10.85 8.55 5.01 1.51 14.37 1.5 0.7 0.95 0.345Commercial Building Work 56.20 20.97 64.69 21.09 53.29 119.43 41.78 39.91 17.82 130.32 131.16 20.42Garages, Pools, Decks and Similar Structures 4.42 1.42 2.62 2.75 8.52 2.18 3.48 11.49 35.74 10.08 11.27 3.96Multi Unit 10.63 27.00 9.52 3.05 44.86 21.88 30.84 95.7 31.46 78.4 148.8 5.92New Homes 43.41 19.87 32.25 23.55 55.60 27.54 13.83 9.31 7.3 13.53 7.3 6.02

The above graph and table below summarise private sector building activity for the various building sectors in the ACT over the past 12 months. The values for each month are depicted in millions of dollars.

ACT PRIVATE SECTOR BUILDING ACTIVITY

COMING EVENTS FOR 2011

Master Builders Charity Golf Day

Date: Monday 28 February Where: Yowani Country Club, Lyneham

Master Builders Association of the ACT Annual Golf Day is our major social sporting event, designed to reach a broad spectrum of the building and construction industry. The Golf Day will consist of a round of golf, a BBQ lunch and dinner at the Yowani Country Club Restaurant. Trophies will be presented during the dinner, followed by our guest entertainer, ventriloquist Darren Carr and finally a charity auction with Canberra Lifeline as the beneficiary.

2011 Master Builders Group Training Apprentice & Cadet Awards

Date: Friday 18 March Where: Southern Cross Events Centre, Woden

The Master Builders Group Training Apprentice and Cadet Awards offer apprentices, cadets and host employers the opportunity to be recognised for their hard work and dedication throughout 2010.

Master Builders & Boral Excellence in Building Awards

Date: Friday 24 June Where: National Convention Centre Canberra

The Master Builders & Boral Excellence in Building Awards are largely regarded as the premier awards and networking event for the building and construction industry throughout Canberra and the surrounding region.

2011 Master Builders & Boral Excellence in Building Awards

Important Dates

Date: Now Date: 11 March Date: 15 April - 5 May Date: 24 June

- Member Entry Kits Available - Entries Close - Judging Period - 2011 Master Builders and Boral Excellence in Building Awards

TRAINING DATES FOR MAR 2011

Master Builders Green Living - Domestic - 4 days

Date: 3rd and 10th March / 17th and 24th March 2011 Master Builders has created the Green Living nationally recognised training program to provide builders with the knowledge, information and tools to build sustainability options into their projects. Greater confidence when offering sustainable solutions to clients

• Enhanced ability to design & construct sustainable dwellings

• Understanding BCA 2010 Energy Efficiency provisions

• Market yourself as a Green Living Builder - have your details listed on Master Builders Green Living website - use the Green Living logo on building sites (Sticker and decal).