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September 26, 2011

NCCP blocks broker ‘independence’ claims

Filed under: Uncategorized — Tags: , , , — tom @ 1:32 am

An NCCP amendment has dictated that brokers can no longer describe themselves as ‘independent’ in advertising their services to clients.

The amendment restricts the use of the terms ‘independent’, ‘impartial’, ‘unbiased’ or any other words with similar connotations. The amendment dictates that licensees cannot use the words unless they do not receive any commissions not rebated in full to the borrower, do not receive any other gifts or benefits from lenders, are not subject to any restraint in product offerings and are not subject to any conflicts of interest.

Gadens Lawyers senior partner Jon Denovan told Australian BrokerNews the restrictions see the mortgage broking industry become subject to the same rules governing the financial planning industry.

“The same restriction is there for financial planners. They can’t call themselves independent,” Denovan commented.

Denovan confirmed that brokers will not be able to use the terms in their marketing, or advertise their services as “independent”.

“To be independent you would have to have no upfront and no trail from the lender,” he stated.

However, Denovan predicted the industry will find a way to adapt.

“I think the industry will find a way around it somehow. We’ll find another word, like ‘we’re on your side’ or, as Aussie said, ‘we’ll save you’. It kind of says the same thing as ‘independent’,” he said.

Denovan indicated brokers who use any of the terms will have to rethink their marketing strategy.

“They probably should never have used those terms as they are very high standards to live up to, and very hard to prove in a court if you receive different commissions from different lenders,” Denovan said.

September 25, 2011

Healthcare Construction On the Move

Filed under: Uncategorized — Tags: , , , , — tom @ 10:45 pm

After a year of subdued conditions, the healthcare construction sector in Australia is set to recover as a strong increase in construction starts drives growth in activity from 2012/13 and beyond.

In its latest report on the Australian building sector, industry research firm BIS Shrapnel predicts that construction starts on health related facilities will increase by 73 per cent in 2011/12. Driving this increase are starts on the new Royal Adelaide Hospital ($1.7 billion) and the new Princess Margaret Hospital for Children ($1 billion).

In the near term however, conditions look set to remain subdued with a dearth of major project starts prior to the Royal Adelaide Hospital in 2010/11 (refer to chart) feeding through to soft conditions in 2011/12.

Not surprisingly then, in the twelve months to March next year, the Construction Forecasting Council (CFC) expects the value of work done on health and aged care facilities to drop by 11.9 per cent from $3.966 billion to $3.494 billion.

By 2012/13, however, the CFC expects the value of work done to bounce back to $3.970 billion as momentum from starts on Royal Adelaide and Princess Margaret flows through to stronger activity. Beyond that, subsequent years will see modest growth as work on the first stage of the Sunshine Coast University Hospital ($940 million) gets going.

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State by State
Despite South Australia and Western Australia both receiving boosts from Royal Adelaide Hospital and Princess Margaret Hospital, larger states are expected to be the best performers going forward.

In significant statewide developments, according to CFC forecasts:

• Victoria is expected to defy national trends and record a marginal increase in activity from $892.7 million to $910.6 million in the twelve months to March next year. Beyond that, the value of work is expected to reach $966.5 million in financial year 2012/13 and $1.028 billion in 2013/14.

• Activity in New South Wales is expected to drop back from $1.102 billion to $1.049 billion in the year to March 2012 before bouncing back to $1.179 billion by financial year 2012/13.

• Likewise in Queensland, after an 11.7 per cent contraction ($868.0 million) in the twelve months to March next year, the value of work will reach $1.114 billion in 2012/13 as work on Sunshine Coast gets going.

• Despite the boost from the Royal Adelaide Hospital, the value of work done in South Australia is set to contract from $257.8 million to $232.2 million in the year to March. Beyond that, however, activity is set to bounce back to $259.7 million in 2012/13 and reach $287 million by 2014/15.

• Despite the relocation of the Princess Margaret Hospital, activity in Western Australia is expected to drop back from $658.7 million to $339.7 million in the twelve months to March. Beyond that, activity is set to remain flat in 2012/13 before returning to moderate growth shortly thereafter, reaching $406.3 million by 2014/15. Activity in WA has been abnormally strong in recent years as a result of work on the $2 billion Fiona Stanley Hospital.

• Thanks to work on the Royal Hobart Hospital, activity in Tasmania is expected to hit $74.7 million during the next financial year – up more than threefold on the $21.9 million recorded in 2009/10.

St Kilda Triangle Proposal Back on Agenda

Filed under: Victorian Projects 2011 — Tags: , , — tom @ 10:43 pm

A LEANER, greener proposal to redevelop the 1.5-hectare St Kilda Triangle site should be unveiled by next year – allowing construction to start soon after.

The City of Port Phillip, which includes many new councilors elected on the back of protesting a controversial 2007 proposal – has started a community consultation program designed to create a new vision for the blue ribbon asset, next door to the Palais Theatre, opposite St Kilda Beach.

Its recently released Toward a Shared Vision document summarises feedback from a public ideas forum held about the redevelopment in June. Amongst the 40 attendees were architects, planners, council staff and members of the Acland and Fitzroy street traders’ associations.

Unchain St Kilda – the community group that failed to stop the 2007 proposal dubbed by critics as Chadstone Shopping Centre by the Sea was also represented at the forum.

Various new ideas discussed for the site include sinking car parking underground, creating a new public square and re-engineering Jacka Boulevard, which was described as “a physical barrier for everyone”. The poor connection between The Esplanade and foreshore was also discussed.

Building new entertainment structures or a new arts-based community were also brainstormed, as was a “heritage-themed” option that would aim to retain the Palais as the dominant building in the area.

Council said engaging the theatre with the Triangle site is a priority. In late 2010 the state government announced a $2.5 million restoration of the Palais. Council also said climate change impacts would be factored highly in any design outcomes for the site bound by Jacka Boulevard, The Esplanade and Cavell Avenue.

The St Kilda Triangle redevelopment was one of Melbourne’s highest profile disputes eventually costing many councilors their former seats, amongst them Janet Cribbes, a former Mayor, and Dick Gross, who was president of the Municipal Association of Victoria.

A consortium led by Sydney-based Citta Property Group was awarded the tender to build a mixed use commercial village in mid-2007, but various factors surrounding the economic downturn meant construction didn’t start before the next council elections.

Incoming councilors scuttled the project in December 2009 paying $5 million compensation to Citta which reportedly invested $12 million on its scheme.

An Ombudsman report regarding the contentious 2007 approval, released in June 2010 found the former council kept poor record, and did not identify conflicts of interests. The report questioned whether the former council had the expertise to manage the tender process.

September 21, 2011

VCCC Preferred Consortium Negotiates Contract

Filed under: Uncategorized — Tags: , , , , — tom @ 3:36 am

Progress on the Victorian Comprehensive Cancer Centre (7 September 2011)

Planning for the Victorian Comprehensive Cancer Centre (VCCC) has progressed, with a decision being made by the Victorian Government to enter into an Exclusive Negotiation Phase (ENP) with the currently first-ranked tender Respondent. This decision has been communicated to all three Respondent Groups.

Appointment of the Preferred Bidder has not yet taken place, and as such the Victorian Government has reserved the right to open up (if necessary) the exclusive negotiation to include one or more of the other Respondents to the public tender.

The VCCC project therefore remains under tender until the contract has been awarded, after which time a public announcement of the tender outcome will occur. Details of the tender, including the structured ENP, are confidential.

Construction of the VCCC, on the site of the former Dental Hospital in Parkville, is scheduled to commence following the appointment of a preferred bidder and to be completed by the end of 2015.

The VCCC aspires to be among the best comprehensive cancer centres in the world through the collaboration of recognised leaders in cancer research, treatment and care.

It will be the new home for a relocated Peter MacCallum Cancer Centre and will link with existing cancer services at the Royal Melbourne Hospital, the Royal Women’s Hospital and the Royal Children’s Hospital, allowing all patients access to the best services and facilities.

The Victorian Comprehensive Cancer Centre project is jointly funded by the Victorian and Commonwealth Governments with contributions also from philanthropic donations and the sale of surplus land.

Is it really 20 years since the Southern Stand was built?

Filed under: Uncategorized — Tags: , , — tom @ 2:08 am

WORK to refurbish the MCG’s Great Southern Stand will begin immediately after the AFL Grand Final is completed.

The $55 million project will include a new ticketing system to get fans into the ground faster, as well as plasma TVs, new function rooms, and improved food outlets and toilets in the 20-year-old stand.

The facelift is intended to raise the standard of “the people’s stand” to those of the newer Northern Stand, with an emphasis on open light spaces and improved entries at gates four, five, six and seven.

A 500-seat function room will be created on the southern side of the MCG, although the construction will have a “minimal impact” on the Boxing Day Test as well as other cricket matches at the ground, according to MCC chief executive Stephen Gough.

The state government is chipping in $30 million for the project along with $25 million from the MCC to allow the entire stand can be upgraded.

Multi-Res Construction to Bounce Back in 2012/13

Filed under: Uncategorized — Tags: , , , , — tom @ 1:55 am

After subdued conditions in 2011/12, construction activity in the multi-residential sector in Australia is set to bounce back in 2012/13.

Despite weak conditions in the broader residential market, the multi-res sector has been experiencing strong levels of activity over recent years. In 2010/11, Housing Industry Association (HIA) puts the number of multi-residential dwelling starts at 57,790 – higher than at any other time over the past eight years (see chart below). Also, over the twelve months to March, figures from the Australian Bureau of Statistics (ABS) indicate that the value of work done in the sector grew 20.83% to come in at $13.615 billion.

For the moment however, conditions have turned ugly. The latest Performance of Construction Index report (PCI), published by HIA and Australian Industry Group (AIG) earlier this month, indicated that apartment building activity declined again in July. The apartment building sub-index registered 34.9, a slight improvement on the June figure (33.7) but still a significant contraction in activity (any reading below 50 indicates a decline in activity during the month in question).

Going forward, near term indicators are not encouraging. New orders for apartments, according to the PCI, have been in decline for eighteen months in a row, and declined in June and July at a faster rate than any other time in the past two years. In the six months to June, the value of flats, units and townhouses approved ($5.718 billion) was up on the same period last year ($5.647 billion), according to ABS figures – but not by much. Moreover, at $12,578 billion the total value of multi-residential dwellings approved over the twelve months to June was less than the current value of building activity, meaning that new work is not quite coming in as fast as existing work is being done.

Not surprisingly then, forecasters are not optimistic about near term prospects. In 2011/12, HIA sees the number of dwelling starts in the sector dropping back to 49,320 – down 14.66 per cent from 2012/11 but still well above lows of 39,190 experienced in 2008/09. The Construction Forecasting Council (CFC), too, sees the value of work done easing back by 3.3 per cent to $13.176 billion in the twelve months to March next year.

Beyond that however, activity looks set to pick up from mid next year as projects such as The Landing in Gosford ($1 billion) get going. In 2012/13, HIA expects the number of starts to bounce back to 54,890. In the same year, the CFC expects the value of work done to reach $15.479 billion. Beyond that, the CFC is optimistic, expecting activity to reach $17.860 billion by 2014/15.

New South Wales/Queensland to lead the recovery
New South Wales is expected to lead the anticipated recovery.

In significant statewide developments, according to HIA forecasts:

• The number of starts in New South Wales will increase from 15,430 to 15,750 in 2011/12 before surging to 18,380 in 2012/13 once projects like The Landing and a mixed use redevelopment of Penrith Panthers’ landholdings ($800 million) get into full swing.

• After strong activity in 2010/11, the number of starts in Victoria is set to drop back from 22,690 to 16,070 this year before recovering mildly to 16,590 in 2012/13.

• In Queensland, after dropping back from 9,310 to 8,900 in 2011/12, the number of starts is expected to bounce back to 9,950 in 2012/13.

• Flat conditions are expected for South Australia, where the number of starts is set to ease back from 2,560 to 2,430 this year before rising again to 2,520 in 2012/13.

• Western Australia is expecting a strong rebound, with the number of starts reaching 4,400 in 2012/13 after contracting from 3,650 to 3,450 in 2011/12.

• Subdued conditions are expected in Tasmania, with the number of starts dropping back from 820 to 640 in 2011/12 before rising back to 710 the following year.

September 15, 2011

Melbourne – Most Livable City

Filed under: Uncategorized — Tags: , — tom @ 5:25 am

Melbourne Most Livable City

For such a “new” country, Australia has been ranked amongst the worlds best. Strength as an economic power was proven during the Global Financial Crisis, with many on this isolated island wondering at the immensity of the economic ruin faced by major powers still to this day.

While the reasoning behind this country’s safe passage through such a catastrophic global event has been debated, with credit placed in both valid and invalid locations, there can be no questioning the importance of our strong industry involvement in keeping the economy afloat.

Adding to solid economic growth, strongly enabled by the West’s major mining boom, four Australian cities have been ranked top ten in this years Economist Intelligence Unit (EIU) global liveability report. Topping the list, and breaking the eight-year reign of Vancouver, Canada is Melbourne, with Sydney following in sixth place, and Perth and Adelaide tied at eighth.

The report uses a number of criteria in order to differentiate between the 140 vying countries.

“The Liveability Ranking and Overview assesses living conditions in 140 cities around the world. A rating of relative comfort for 30 indicators is assigned across five broad categories: stability; healthcare; culture and environment; education; and infrastructure. The survey gives an overall rating of 0-100, where 1 is intolerable and 100 is ideal,” the EIU report.

Melbourne Most Livable City

This is an incredible promotion of Australia, its lifestyle and economy, with EIU representatives citing low density and low crime rates as the catalyst for this year’s winners.

While critics have slammed the report as being biased and discredited, overwhelmingly support has been received by the winning city, especially when considering its place in the current global climate.

The reality of the situation is that Europe’s economic melting pot has impacted heavily on this years rating system, pushing Australia up in the liveability stakes.

This livability comes at a price.

Although gauged as the world’s most liveable cities, further reportage shows a direct correlation between standard of living and the cost of living, with Sydney being ranked as the 7th most expensive city in the world.  Melbourne and Sydney both have some of the highest global median house prices, these numbers dominating critics’ reports.

There was further discussion about Melbourne’s notoriously criticised public transport infrastructure, but it appears in comparison to the rest of the world, the Victorian city is the place to be.

Dropping to the bottom of the list was Bangladesh’s Dhaka and Harare Zimbabwe due to high crime rates and low living standards.

Whether credible or otherwise, this global honour bestowed upon Melbourne, as well as Australia as a whole, is at the very least, a fantastic promotion of an industry that is the pillar of this country.

Melbourne Most Livable City

HIA warns of half-million shortfall for housing

Filed under: Uncategorized — Tags: , , — tom @ 4:53 am

At its current pace of construction, Australia could face a housing shortfall of half a million homes by 2020, the HIA has claimed.

In its Housing to 2020 report, the Housing Industry Association has claimed housing shortfalls could become increasingly critical in the years ahead.

“HIA estimates that Australia will require in the order of 1.6 million homes over the nine years to 2020, but if we build at the average rate of the last 20 years many areas of the country will have a critical housing shortage by 2020. Under such a scenario the cumulative national shortage could approach 500,900 dwellings,” HIA senior economist Andrew Harvey said.

The organisation has forecast that NSW will see the greatest shortfall of dwellings, with a housing deficit of 155,700 by 2020. Tasmania was the only state or territory where the HIA projected a surplus by 2020.

In spite of the HIA claims of a housing shortage, recent data suggests an overhang of housing stock currently on the market. RP Data has indicated stock levels are 32% higher across capital cities than at the same time last year, and SQM Research has pointed to a 22% year-on-year increase in stock on market nationally.

Melbourne Wins Big at Master Builders Awards

Filed under: Uncategorized — Tags: , , , , , , , , , , , , , , , , , — tom @ 4:49 am

AAMI Park Melbourne

Melbourne has yet again proven its industry excellence at the 2011 Master Builders Excellence in Construction Awards. While many of the night’s big winners were obvious favourites, lesser known projects stole the show, proving that the city’s industry only has further to grow.

The awards are judged by a range of top industry associates including members from the Royal Australian Institute of Architects, Engineers Australia and the Master Builders Association. The judging is varied and project winners are awarded in different categories according to their strongest features.

Not surprisingly, the overall winners were Grocon for their AAMI Park development scoring the top Master Builder of the Year award. The highly acclaimed 30,000 seat sporting stadium was designed by Cox Architecture and completed in 2010. While the project is host to a barrage of design and construction intricacies, it is the lightweight bio-frame roof that separates it from traditional stadiums worldwide.

Another big winner included McCorkell Constructions who took home the title of Excellence in Construction of Commercial Buildings $10 million to $12.5 million for their work on the State Library of Victoria’s ’Wheeler Centre’ development, designed by peckvonhartel and architects Ancher/Mortlock/Wooley the development was officially opened in 2010. The southern wing of the city library was completely redeveloped into the Wheeler Centre as part of Melbourne’s “City of Literature” initiative, the construction team using great skill and expertise in order to blend the addition with the original historical building.

Melbourne Centre for Nanofabrication at Monash University Melbourne Centre for Nanofabrication Lab

Tertiary and research institutions were a common theme as winners on the night included: the Melbourne Brain Centre and the Melbourne Centre for Nanofabrication at Monash University Science Research Park Clayton, both constructed by Cockram Construction Limited; the Monash School of Rural Health by Joss Constructions; and the Swinburne University ATC Hawthorn, constructed by Kane Constructions, all taking home the top wins in their respective categories.

The latter project by Kane Constructions took home the prize for Excellence in Construction of Commercial Buildings $30 million to $80 million, with their $75 million research and learning centre development. In association with H20 Architects and Waterman AHW Consultants, the construction team were able a complete the world class facility that boasts state of the art interiors and an iconic white circular patterned façade. Due to this striking design the project and construction team were also the proud winners of the Australian Institute of Architecture’s award for Public Architecture.

Additional winners included Upgrade Commercial Interiors for the Myer Melbourne Redevelopment, FDC Construction & Fitout for their OPSM Eye Hub fitout and of course Grocon’s carbon-neutral Pixel building, which unsurprisingly took home the award for Best Sustainable Energy Project.

The 2011 Master Builders Excellence in Construction Awards has set a benchmark that can only offer to promote positive growth and excellence on an industry level. Next year’s competing projects will have to reach an incredibly high standard in order to wow the judges of this year’s competition.