NEW ZEALAND’S CIVIL CONTRACTING INDUSTRY MAGAZINE
Ammann
M AY 2 0 1 7
expands compaction range INSIDE: Talking with the King of Airports – Arnold Bayliss in profile National Excavator Operators’ Competition – behind the scenes Transmission Gully – a major motorway project in progress Moving in a new direction – Alpha Specialised Movers update
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CONTENTS CONTRACTOR
32
INSIDE: Regulars 4 Editorial 6 Upfront 12 Contractors’ Diary 16 On the cover 50 Classic Machines 54 Motoring 56 Innovations 58 Civil Contractors NZ update 58 Advertisers index
Comment 44 Peter Silcock CCNZ 45 Jonathan Bhana-Thomson NZHHA 46 Tommy Parker NZTA 47 Caroline Boot
Highlights / Features 18 Profile: The King of Airports Arnold Bayliss, his career with Downer and all those airports.
22 2017 National Excavator Operators’
Competition
The 16th NEOC held at Feilding last month was two-days of intense skill sets between 10 contestants representing regional competitions around the country.
32 Company profile: Moving in a new direction Alpha Specialised Movers changes direction now that one of its founders has retired.
36 Gully motorway progressing well
There’s been some significant progress made constructing the $850 million Transmission Gully motorway that is beyond the public gaze.
ON THE COVER The Ammann range of compaction equipment continues to grow and now has an even stronger presence in our market. See page 16
Plan A and Clever Buying
48 Stuart Robertson & Brendan Cash
Kensington Swan
18
36 MAY 2017 3
CONTRACTOR EDITORIAL
In appreciation of publishing This is a milestone issue for some of us here at Contrafed Publishing. It is Kevin Lawrence’s last Contractor magazine as editor, and I have now completed a decade with the company. That’s a lot of magazines. Kevin has resigned to take up a new position as the managing director of his own company. Quite a large company too, which is based in Hamilton. Which means a big shift in focus for Kevin and a change for us, as the company seeks a new general manager. I speak on behalf of everyone here at Contrafed when I say it has been enjoyable working alongside Kevin these past five years and we all wish him well. Within that time the company has been involved in new magazines and a number of large projects, such as the ENEX energy show, which we sold, and a huge investment of resources into digital publishing. As a managing editor who has worked for large publishing companies over the decades I can tell you that, while publishing technology changes, the quality of content remains paramount – whether the medium is print or digital. The team here at Contrafed is very aware of our role to provide our readers, on behalf of stakeholder owners, content that is pertinent to their industries. We will continue to do that. Meantime, enjoy this issue. Major features include extensive coverage of the National Excavator Operator Competition (if you intend competing in any of the branch competitions make sure you read it, as it is full of tips for contestants), and the latest update on the $850 million Transmission Gully motorway. We also profile Arnold Bayliss, a much-respected ex-Downer project manager who is known throughout the industry as ‘the king of airports’. I will leave the last word to Kevin, and remind you that our home web page, www.contrafed. co.nz, and www.contractormag.co.nz, contain a wealth of content based on all our publications and numerous civil contracting projects, and industry views. Keeping on shifting dirt for a better future. Alan Titchall Editorial Manager
Thanks for the memories It’s a daunting exercise for anyone coming into a sector full of personalities, jargon, politics and history to get their heads around, and civil contracting certainly has plenty of them all. Fortunately for me, over the past five years I’ve been helped by a great many people who encouraged and steered me in (mostly) the right direction. Contrafed board members – especially current members Charlie Taylor and Paul Bishop and ex-members Jeremy Sole and Jim Juno have been essential to the company’s success, and have shared their knowledge and experience every step of the way. To my colleagues both in-house and supporting contractors who all contribute to Contrafed’s survival, I can only say thank you. It’s been a significant part of my career to date and has given me the courage, skills, and experience to move on to the next stage. I’m proud of what we’ve published – especially those parts that have challenged some peoples’ comfort levels, educated and entertained. I have every confidence the company is in good hands for the future, and will continue telling your stories of success for many years to come. Thanks again. Kevin 4 www.contractormag.co.nz
PUBLISHER Contrafed Publishing Co Ltd Suite 2.1, 93 Dominion Road, Mt Eden, Auckland PO Box 112357, Penrose, Auckland 1642 Phone: +64 9 636 5715 Fax: +64 9 636 5716 www.contrafed.co.nz EDITORIAL MANAGER Alan Titchall DDI: 09 636 5712 Mobile: 027 405 0338 Email: alan@contrafed.co.nz REGULAR CONTRIBUTORS Malcolm Abernethy, Mary Searle Bell, Richard Campbell, Hugh de Lacy, Cameron Officer, Richard Silcock, Chris Webb. ADVERTISING / SALES Charles Fairbairn DDI: 09 636 5724 Mobile: 021 411 890 Email: charles@contrafed.co.nz ADMIN / SUBSCRIPTIONS DDI: 09 636 5715 Email: admin@contrafed.co.nz PRODUCTION Design: TMA Design, 09 636 5713 Printing: PMP MAXUM
Contributions welcome Please contact the editor before sending them in. Articles in Contractor are copyright and may not be reproduced in whole or in part without the permission of the publisher. Opinions expressed in this magazine are not necessarily those of the shareholding organisations.
www.linkedin.com/NZcontractor @NZContractormag nz contractor magazine nz contractor magazine The official magazine of Civil Contractors NZ www.civilcontractors.co.nz The Aggregate & Quarry Association www.aqa.org.nz The New Zealand Heavy Haulage Association www.hha.org.nz The Crane Association of New Zealand www.cranes.org.nz Rural Contractors New Zealand www.ruralcontractors.org.nz The Ready Mixed Concrete Association www.nzrmca.org.nz Connexis www.connexis.org.nz
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CONTRACTOR UPFRONT
Calling for female leaders More women than ever are joining our booming construction industry with the number of women in construction doubling to 17 percent over the past 15 years, but this increase hasn’t resulted in more women in leadership roles within the industry. “While it is fantastic to see increasing numbers of women choosing a career in construction, this isn’t reflected in the participation of women at a decision-making level in construction and in fact all industries across New Zealand,” says National Association of Women in Construction (NAWIC) president Donna Howell. Only 20.1 percent of Kiwi women hold senior leadership positions while just 16.8 percent of listed companies have female directors. Donna hopes that the third annual Hays NAWIC Excellence Awards, which will be held on August 18 in Auckland, will generate plenty of discussion on this topic, while the introduction of a new “rising star” category will provide recognition for future leaders within our industry. “The awards celebrate the achievements of women in construction as well as honouring those organisations which are redressing the industry’s gender imbalance. “We’re delighted with the growing number of entries we’re receiving each year and are excited to introduce this new category which will celebrate up and coming leaders who will inspire others to seek out leadership roles.” Hays is sponsoring the NAWIC Excellence Awards for the third year in a row to recognise the significant contributions being made by women in New Zealand’s construction industry. Hays managing director Jason Walker says the company is delighted to be sponsoring the awards and is looking forward to reviewing more fantastic entries from inspiring women who already work in the industry. “We actively encourage and support the rising numbers of women joining New Zealand’s trades and construction industries and are keen to keep recruiting as many as possible. “The industry is rapidly changing and women are definitely making their mark. Women choosing a career in building, construction and the trades are seeing that they can progress up the ranks and operate their own businesses while enjoying high wages and
excellent growth and training opportunities.” Entries/nominations for the awards are open until June 5. Employers and managers are encouraged to submit nominations on behalf of their staff. The awards have six categories which cover a wide range of roles across the industry. The categories are: • The Helen Tippett Award, which celebrates achievement in advancing the interests of women in the construction industry. • Tradeswoman of the Year, which celebrates the contribution tradeswomen are making to the industry. • Professional Woman of the Year, which focuses on women who have managed a construction project or those who operate their own business in the industry. • Rising Star, which celebrates women who demonstrate future leadership potential within the industry. This category is open to women who have worked in the industry for less than seven years. • Outstanding Achievement in Design, which celebrates the design aspect of a construction project in engineering, architecture or urban/landscape design. • Excellence in Construction Services, which honours the contribution of women in administration, sales/marketing or operational roles within the industry. • Student/Apprentice Excellence Award, which is open to all women engaged in construction-related study or apprenticeships. Visit the NAWIC website for nomination/entry forms and further information – www.nawic.org.nz
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Future Auckland projects The NZ Transport Agency and Auckland Transport boards have agreed on a staged, integrated transition project from bus to light rail transit from Auckland Airport to the city centre, based on future demand and capacity, and to start route protection for a gateway corridor. The two agencies says they will work together with Auckland Council to determine an integrated approach that enables a progression from the current bus services and bus lanes, to improved bus services in the short-term. This will potentially be followed by higher capacity buses and a dedicated bus mass transit right of way, before a transition to light rail transit could occur. The timing for this transition will be based on demand, capacity and funding, they say. Various studies say Dominion Road is the preferred route to the Southern Motorway, they add. “In parallel, work will be undertaken to progress route protection of the south-eastern connection from the airport to Manukau City Centre and east to Botany to ensure good connections to the airport and its surrounding employment zones.�
CCNZ central regions manager Stu Gardner (left) and Michael Woodhouse, Minister for Workplace Relations, Safety and ACC.
CCNZ function time Civil Contractors New Zealand held a function for stakeholders, suppliers and supporters in Wellington last month. A storm, as only Wellington can put it on, did not deter a good turnout for drinks, nibbles and networking.
$135m on SH3 Investigations over improvements to SH3 north of Taranaki have been ongoing since the 1970s and 1980s. Poor alignment on this highway has resulted in a number of deaths, serious injuries and road closures over recent years. Now the government is spending $135 million on a bypass of the Awakino Tunnel and will shortly announce the next steps for the Mt Messenger bypass project. A two-bridge bypass of Awakino Tunnel has been selected and design and consenting work is in progress ahead of construction along the 58 kilometre stretch of highway, including road
widening, intersection improvements, passing opportunities, road realignments and slope stability. It is expected that an announcement on the preferred option for Mt Messenger will be made in August this year. An Alliance team including NZ Transport Agency, Downer, HEB Construction, Tonkin & Taylor, Opus International, Holmes Consulting and Isthmus, has been appointed for the work. Construction dates are: Mt Messenger bypass 2018-2020; Awakino Tunnel bypass, 2018-2020; and safety improvements, 2017-2019.
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CONTRACTOR UPFRONT
Mother of all projects The City Rail Link (CRL) in Auckland, the country’s largest transport infrastructure project, is expected to be complete within seven years (by 2024). Meantime, construction is continuing to expand, with two contracts underway and more to follow, says Transport Minister Simon Bridges. “It is estimated that about 600 general construction workers will be needed for the construction of the CRL with an estimated 1600 jobs at the peak of works. “The construction industry is booming with the national demand for building and construction being heavily driven by Auckland. “New Zealand continues to construct more by value than ever before with the total value expected to grow to $37 billion towards the end of 2017.”
East West Link animation The Transport Agency is beating the PR drums hard over its proposed East West Link in Auckland using animation to show how the link will improve travel between Onehunga-Penrose and State Highways 1 and 20. The project includes a new four lane road on the northern side of the Mangere Inlet connecting SH20 at Onehunga and SH1 at Mt Wellington. The two-minute video can be viewed here: bit.ly/East-West-Link.
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Clutha bridge project Bridge projects abound at the moment with the Clutha District Council getting the green light from the Transport Agency for work to strengthen the Hina Hina Bridge, making it suitable for heavy vehicles again. The NZTA approved a budget of $1.13 million for the project and will fund 59 percent, while the council picks up the remainder. Located in the Catlins, the Hina Hina Bridge has deteriorated over a number of years and has had severe weight restrictions in place for safety reasons. Locally, the bridge is considered to be a critical link to Jack’s Bay. Once the strengthening is completed, the bridge will be reopened to vehicles weighing up to 44 tonnes. Tenders for the work close in late March.
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Civil Contractors New Zealand put its public relations machine to good use last month by making the mainstream aware of the thousands of workers in civil construction and general contracting working in the elements as the country was lashed by storms. Said CCNZ chief Peter Silcock, that was only the beginning as the association’s 600 members carry on repair work. “Like emergency and civil defence staff, our workers help out in extreme weather conditions at all times of the day or night,” he said. “It can be very difficult and very dangerous work and is often not recognised. I’d like to acknowledge their dedication.”
CONTRACTOR UPFRONT
International interest in CRL
A meeting of roading experts The annual Road Infrastructure Management Forum has become the leading event for anyone with an interest in advanced roading asset management and improving the use and preservation of roading corridors. Organised by RIMS, IDS and NZUAG, the two-day 2017 event was held at Waipuna Hotel & Conference Centre in Auckland back in March. In the first day attendees sat through plenary presentations aimed at the broad roading infrastructure management industry. Presentations focused on sharing asset management good practice examples, data collection, works management, transforming data into intelligence, and the use of systems and data in optimised decision making and the management of assets. The second day consisted of two concurrent streams that went into more detail on roading optimised decision making and corridor access management. These streams involved detailed technical talks, and included workshops for sharing difficulties and learnings, debating, and digging further in to some key issues in these parts of the industry. An important goal of day two was to provide a forum for professionals in the sectors of the industry that do not often get the opportunity to meet as a community to come together and network. We will be publishing papers from RIMS 2017 through the year. Pictured: CCNZ chief executive Peter Silcok was the first presenter and he explained the powerful value of the ConsructSafe H&S assessment programme.
A STAMP OF EXCELLENCE
The City Rail Link has attracted international interest in the contract for the project’s tunnels and stations. Ten companies from Europe, China, Australia and New Zealand have participated in the pre-qualification phase of the contract and eight have been approved to move to the next phase (expression of interest). “We had hundreds of people attend an industry briefing late last year and it is rewarding to see that investment paying off for us in the quality and breadth of experience that the bidders are bringing to the process,” says project director Chris Meale. “We are competing with other major infrastructure projects worldwide and it is important to attract enough interest for a competitive process that will ensure Auckland gets value for money.” Expressions of interest for the tunnel and station work will be evaluated and, around October, two will be shortlisted for the tender phase. “The tender process, for a project as complex as CRL, will take several months. Tenders will then be evaluated before the contractor is selected next year,” says Chris Meale.
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UPFRONT CONTRACTOR
Rotorua road works
Farewell brother Ross Francis lost his brave battle with cancer on March 16. There was a huge turnout for his funeral where his life was celebrated by many in the contracting industry. Ross’ coffin was carried on the back of a 1968 Leyland with a guard of honour by the Road Metals fleet. It was a very emotional time with tooting of air horns as the truck passed. Ross was a great supporter of the NZCF and spent a considerable stint as chairman for the Canterbury Branch (I think it was between 1996 and 2002). Ross started his career in 1970 as a loader operator for North Otago Road Metals (NORM). When he was old enough to gain his Heavy Traffic Licence he then progressed to truck and trailers. He stayed with NORM working throughout the South Island including at Twizel for a period. He transferred to Timaru when Francis Construction was started in 1978 originally as a truck driver, then operations manager in 1980. With the passing of our father, Stan Francis, in 1992, the three
The NZTA is working with Rotorua Lakes Council to deliver ‘Connect Rotorua’, a programme of work that aims to resolve congestion issues, address challenges surrounding local road access, and support inner city revitalisation. The Transport Agency’s Bay of Plenty highways manager Niclas Johansson says: “Last year the government announced $24 million in funding to transform the central and eastern corridors. “Stakeholder feedback has been used to create a shortlist of possible changes designed to enhance Rotorua’s central corridor and increase capacity in the east. “Once we have collated the feedback we will assess the options further and refine them. We expect to announce the preferred options later this year.”
companies, NORM, Francis Construction and Francis Mining, were split and Ross inherited Francis Construction, then based in Christchurch. He sold Francis Construction to Isaac’s in 2001 and then did a number of different jobs including being a publican in Akaroa. He was still handy behind the wheel of a truck and trailer unit and did a lot of relief driving for Road Metals Co right up to the end. Murray Francis, Road Metals Co
Picton / Waikawa sewerage upgrade Stages two and three of a major upgrade to Picton’s 85-year-old sewerage system start this month. Contractors will replace main sewerage pipes and pump stations between Dublin and Ranui Streets, and build a new bypass treatment facility to treat excess sewage that can’t be processed at Picton’s Sewage Treatment Plant. The two stages, worth $19.45 million, will service nearly 2500 properties in Picton and Waikawa, says Council projects engineer, Bruce Oliver. Work is expected to take 12 months and follows a major upgrade to Picton and Waikawa’s new water treatment plant at Speeds Road, which has now been commissioned.
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CONTRACTOR UPFRONT
Earthworks at inland port started Tainui Group Holdings (TGH), the intergenerational investor for WaikatoTainui, has started foundational earthworks for the first stage of its inland port at Ruakura. TGH appointed Fulton Hogan as contractor to carry out the initial works covering the first seven hectares of what will eventually be a 31-hectare inland port with the capacity to handle around one million TEUs (20 foot container equivalents) a year when fully built. Foundational earthworks involve trucking crushed rock into the site to pre-load the area to be used for the container marshalling yard. It will take around 12 months for the ground to settle before pavement layers, a rail siding, noise wall, screen planting and services will be completed.
IPENZ appoints new president Craig Price, the new president of the Institution of Professional Engineers New Zealand (IPENZ), has enjoyed a long career with engineering consultancy Beca and is currently South Island regional manager and chair of Beca’s New Zealand business. Craig takes office during a significant period of change for IPENZ, with the organisation adopting a new direction and membership structure. “This will be another big year of change, as we deliver on our strategies to drive increased credibility and influence for our members,” he says. Craig says he’s passionate about upholding engineering standards. He also wants to see engineers moving beyond technical management into leadership and governance roles, in both business and the wider community. “Engineers needs to step up and become influencers, not just implementers. “Problem solving is at the heart of engineering, and engineers can bring this valuable perspective to industry groups and commercial and community boards.” Craig is an IPENZ Fellow, a Chartered Fellow of the Institute of Directors, and a director of infrastructure services company City Care. He will hold office for one year and succeeds Elena Trout, IPENZ’s second female president.
Fulton Hogan profit lift Fulton Hogan hiked its first-half pre-tax earnings 13 percent as Kiwi and Fiji operations achieved better than expected. Profit before tax rose to $112 million in the six months ended December, based on revenue of $1.6 billion. “We are seeing our Fijian and New Zealand operations track ahead of budget, which is pleasing, with some promising developments in Australia as market activity lifts,” said managing director Nick Miller before he left the company at the end of March. “Our land development business also continues to perform in line with expectation driven by strong demand in the Auckland market.”
Ravenswood civil contract awarded Earthworks are in progress at Ravenswood, a new subdivsion in North Canterbury. City Care is the main civil contractor for the $20 million construction project required to build Ravenswood’s 13-hectare commercial area 20 kilometres north of Christchurch. The first commercial titles are expected to be issued in the first quarter of 2018. When fully developed, Ravenswood will have 1352 residential sections.
CONTRACTORS’ DIARY 2017 Date
Event & Venue
17-18 May Green Pavlova: NZRA’s Parks and Open Spaces Conference, Wellington 21-24 May 5th International SaferRoads Conference, Auckland 15-16 Jun Society of Construction Law NZ – Identifying & Managing Obligations, Te Papa, Wellington 17 Jun CCNZ Auckland branch gala awards, Auckland 19-21 Jul AQA/IoQ Joint Annual Conference, Viaduct Events Centre Auckland 19-21 Jul Crane Association Annual Conference, Rotorua 23-25 Jul Local Government New Zealand Annual Conference, SkyCity,, Auckland 2-5 Aug CCNZ Annual Conference and AGM, Dunedin Events Centre 16-19 Aug NZ Heavy Haulage Association, Napier Conference Centre, Marine Parade 23-24 Aug NZ Roadmarkers Conference Distinction Hotel, Hamilton
Contact bit.ly/NZRA_GreenPavlova www.saferroads.co.nz www.constructionlaw.org.nz auckland@civilcontractors.co.nz www.aqa.org.nz/annualconference www.cranes.org.nz www.lgnz.co.nz www.ccnzconference.co.nz www.hha.org.nz www.nzrf.co.nz
Please send any contributions for Contractors’ Diary to kevin@contrafed.co.nz, or phone 09 636 5710 12 www.contractormag.co.nz
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CONTRACTOR UPFRONT
Pekatahi Bridge deck replacement A project to replace the Pekatahi Bridge deck on State Highway 2 has reached the half-way point. With work carried out by Downer, the one-way bridge between Awakeri and Taneatua was closed to traffic in early February to allow contractors to replace the deteriorating timber deck and remove the existing railway tracks. Transport Agency Bay of Plenty highway manager Niclas Johansson says the project is progressing well and is on track to be finished this month as planned. “Over the last six weeks the contractor, Downer Construction, has removed the rail tracks, deconstructed the old timber deck and re-decked about 35 percent of the bridge. “Recent heavy rain has not had too much of an impact on the project and we are still working towards getting traffic back on the bridge in early May.”
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UPFRONT CONTRACTOR
Tourists before locals The government has dismissed the idea of a tourists’ tax to help build infrastructure in towns that get flooded with visitors during the summer season. While targeting an extra million visitors over the next five years, Tourism Minister Paula Bennett says she does not support taxes that would single out tourists. “I’m personally not a big fan ... because we’re really expensive to visit,” she says. “I mean, I don’t mind us being expensive at all, I think that we are unique, we’ve got just the best package in the world to deliver to them, but I don’t want to be seen as a rip-off.” Meantime, our border fees are lower than our closest competitor Australia, and places like the UK, while councils around the country have to deal with a chronic shortage of basic infrastructure like wastewater services, public toilets, rubbish collection and car parks. Visitors to New Zealand are also covered by ACC without having to contribute to the fund.
Awarded ACC accreditation Following a Workplace Safety Management Practices audit, Youngman Richardson & Co was awarded top level ACC Tertiary Level Accreditation status for showing an ongoing commitment to its health and safety programmes and procedures. Aimed at medium and large employers, the ACC Workplace Safety Management Practices audit rewards and recognises employers who build safer workplaces. The audit is designed to assess the health and safety systems and processes of an organisation against the Workplace Safety Management Practices audit standards. Out of the three levels that an employer can achieve, Youngman Richardson & Co has, for the first time, been certified with the top ranking tertiary qualification.
Looking for workers Transmission Gully project manager Wellington Gateway Partnership targeted some 450 workers as it prepared for a huge earthworks programme. The project partnership says it had to increase hiring to tackle six million cubic metres of earthworks and 27 structures on the four-lane highway that will link the capital and Porirua City to the Kapiti Coast (see feature on page 36). The consortium encourages construction professionals, general labourers and plant operators to get in touch on its website. Reportedly, the partnership has struggled with a high turnover of workers. The rolling average for voluntary staff turnover was at 20 percent in January, compared to the 2015 voluntary turnover average across all industries of 12.6 percent in the annual New Zealand Staff Turnover survey. Among initiatives to take on new staff, the project joint venture between CPB Contractors and HEB Construction ran a two-week boot camp for unemployed youth in February, and talked to the Defence Force to look at Transmission Gully as an option for work once people left the military.
MAY 2017 15
CONTRACTOR ON THE COVER
Ammann expands compaction range The Ammann range of compaction equipment continues to grow and now has an even stronger presence in our market.
IT’S BEEN A WHILE now since Youngman Richardson & Co took
on the New Zealand distribution for Ammann compaction equipment. However, the company says that sales have been excellent and there’s a lot more interest being shown in the extensive range now being offered. The models that have attracted the most attention have been the ARX light and heavy tandem rollers and the newer ASC70 single drum construction rollers. In addition, sales of the Ammann RW1575 remote-controlled trench roller are also on the rise. Ammann is a world leading supplier of compaction machinery to the construction industry and is known for it progressiveness. Since 1869 Ammann has been setting benchmarks in the road building industry thanks to countless innovations and solutions that are as competitive as they are dependable. The first New Zealand sale of an AFW150 G mini wheeled asphalt paver is ample testimony to this philosophy and will almost certainly make an impact in this market due to the costsaving benefits it brings to smaller jobs. Ammann ARX and AV Tandem Rollers provide features and benefits that ultimately lead to added value for the operator. 16 www.contractormag.co.nz
The comfortable cab design that provides enhanced visibility, air conditioning and reduced noise levels helps the operator stay focused and productive. As well there are many safety features on this model including the innovative ROPS 2D technology. This technology compensates for dangerous drum drift and shuts the vibration off. The Ammann ARX and AV Tandem Rollers are designed for use on medium to large construction sites as well as road construction and civil construction projects. The ARX range alone boasts 13 models covering a weight range from 1.5 to 10.5 tonnes. There are 11 standard Tandem rollers and five are available in combination versions. Ammann ASC 110 Single Drum Rollers provide excellent compaction and have the capability of being used in either a smooth or padfoot capacity. A major safety feature on this model also, which is unique to Ammann, is the ROPS 2D technology. Simply put, the vibration of the drum is automatically cut when the drum begins to drift or slip preventing the unit from sliding down a bank or road edge. The Ammann 1575 Remote Controlled Trench Roller has major advances in both articulation and oscillation setting new
“We have a good relationship with Youngman Richardson & Co who are just like us, a New Zealand owned family company who are big on after sales service.” There is no doubt that we will add more Ammann rollers to the fleet in the future.”
standards when it comes to compaction, ease of control, noise emissions and fuel consumption. With this machine Ammann has set out to improve its customers’ experience by focusing on the machine’s ability to reduce downtime and maximise compaction.
Magnum Hire adds more Ammann rollers As well as recently moving into new premises at Don Bucks Road in West Auckland, Magnum Hire has also purchased a new fleet of Ammann rollers from Youngman Richardson & Co. The new models include four AV70X and two ARX 90 tandem rollers, bringing the total number of Ammann machines owned by Magnum Hire to 10, which also includes an ASC70 single drum, an ARX12 tandem and two RW1575 remote controlled trench rollers. Magnum Hire has been operating for around 12 years and is now located on a massive 200,000 square metre site which was previously occupied by Stevenson’s. With the erection of a purpose-built building for smaller equipment to one side of the property, the remaining area provides opportunity for future expansion and development for larger equipment. “We have a good relationship with Youngman Richardson &
Co who are just like us, a New Zealand owned family company who are big on after sales service,” says Liam Field, managing director, Magnum Hire. “There is no doubt that we will add more Ammann rollers to the fleet in the future. “We do stock other brands of rollers but we have been really impressed with the Ammann equipment particularly the fuel efficiencies, the reduced emissions and operator comfort enhancements that make them ideal for the hire industry.”
Servicing excellence Youngman Richardson & Co is committed to customer support and has workshop facilities and mobile mechanics to match. Purpose-built mobile service utes have been specifically fitted out to handle planned and unplanned maintenance across all equipment including Ammann products. Meanwhile more efficient workplace layouts have been created to improve service times whilst the company’s reputation for a fast turnaround of parts is second to none. • For more information on the new Ammann mini wheeled asphalt paver, contact Youngman Richardson & Co on 09 443 2436, or for South Island enquiries, 03 341 6923.
•
MAY 2017 17
CONTRACTOR PROFILE
Work being carried out on New Plymouth Airport and the completed runway (above right).
THE KING of airports How many runways do you need to build to be crowned ‘the king of airports’? MARY SEARLE BELL talks to Arnold Bayliss about his career with Downer, and all those airports.
“...you’ve got a lot to learn, matey”. “He taught me all the things I should have known about quarrying – draglines in the river, face shovels in the quarry, producing road metal for the runway.”
18 www.contractormag.co.nz
Arnold Bayliss joined Downer & Co as a 19-year-old in 1950.
ARNOLD BAYLISS first joined Downer & Co back in 1950 as
a 19-year-old. His job had him driving motor scrapers and bulldozers, stripping overburden at Black Diamond and Ohai opencast coal mines in Southland, and he was soon promoted to the role of shift supervisor. He spent eight years there and, when the contract finished, he took a similar job with the Ministry of Works, stripping overburden with a Link-Belt Speeder cable shovel. However, after a few short months, Downer asked him to rejoin the firm, this time as foreman for its Star Mine contract in Southland. Arnold had married Gladys, a miner’s daughter, and they had two young daughters. The family built a house in Nightcaps – “the last one to be built there”, says Arnold. In late 1960 Downer asked him to go to Momona to work as the construction foreman on the Dunedin Airport contract. Arnold says it was a big job – building the airport from scratch – and it was quite a hard job. His team of about 10 operators was responsible for constructing the subgrade for the runway and getting the bitumen put on. “That’s when I really started to learn a few things,” he says.
His boss was Alex Swainson, and Arnold credits him with changing his life. “When I arrived, he picked me up from the airport and he was talking about basecourse. I said, ‘what’s that?’, and he said, ‘you’ve got a lot to learn, matey’. “He taught me all the things I should have known about quarrying – draglines in the river, face shovels in the quarry, producing road metal for the runway.” With the Dunedin Airport complete in 1962, Arnold was asked to go to Whakatane to build an airport there. So, the family packed up and moved north to a rented house in Ohope Beach. The project was small and straightforward, however, the rock came from a quarry owned by a local, who was “just hopeless”, says Arnold, “so I took over”. With Whakatane Airport completed on schedule, Arnold moved on again, this time to Napier, and his third airport. Hawke’s Bay Airport is sited on the former Ahuriri Lagoon, an area which was raised above sea level during the 1931 Napier earthquake. As such, the land required a lot of treatment before it was suitable to hold a runway. “We mixed two percent cement into the premetal to give it
THE BUILDING OF NEW PLYMOUTH AIRPORT Construction involved using a Caterpillar D9G dozer and Allis-Chalmers TS-360 motor scraper. The airport opened for business on November 7, 1966. Downer staff, headed by Arnold Bayliss the project manager, shifted some 1,000,000 cubic yards of dirt and processed a further 60,000 cubic yards of basecourse metal, sourced from
the Waitara River, for the runway sub-base. A fleet of 10 motor scrapers and seven large dozers along with other supporting equipment carried out the work which started in June 1965. PHOTOS AND INFORMATION FROM THE FILES OF AUTHOR AND HISTORIAN R CAMPBELL.
MAY 2017 19
CONTRACTOR PROFILE “Palau gave the most interest because of the difficulties we had to overcome getting the gear there, and having to build the fuel tank and so on.”
Arnold and Gladys Bayliss in earlier days.
strength,” says Arnold. Downer shipped its plant up from Dunedin for the job, “and about three days later guys from there showed up looking for jobs – it was great”. With the old team reunited, they started work on the runway. However, things weren’t easy. “We had to construct lots of concrete slot drains. There were lots of big holes full of mud – the diggers were in it half way up their cabs. “We did most of the work in a very short time as the weather was marvellous. Then the Tangora floods happened and all the slot drains we had built got blocked. We had to clean everything out. We’d send a dog down with a bucket on his back, then his owner would call him out.” Mud and mutts aside, Arnold says it was a really good contract, and he particularly enjoyed having his team of loyal men back. While he was supervising the Hawke’s Bay Airport construction, another contractor was building an airport in Wairoa but went broke before the job was finished. Downer, and Arnold, stepped in to complete the job. At the same time, Arnold was appointed contract manager for the Gisborne-Wairoa road, basing the family in Gisborne for two years while the projects were completed. The year 1965 brought another move and another airport. New Plymouth this time. “Then the MD came and saw me and said, ‘I think it’s time you came into head office’.” For six years from 1966, Arnold was Downer’s plant, earthworks and mining manager, based in Wellington. But 1973 saw a move to Auckland, where he took the position of earthworks, roading and mining, and general civil engineering manager. Once again, there was a runway to build – the Auckland International Airport extension. In 1980, Downer won its first international contract – a joint 20 www.contractormag.co.nz
venture with Fletchers to build an airport, roads and a power station on Palau, east of the Philippines. Arnold was appointed project manager for the $21 million job. “A lot of things turned against us there, but we got through it – we made some money, I think,” says Arnold. “We had to ship our gear from New Zealand but the wharfies were striking – the ship had only half the gear on it when it arrived so we had to hire a second one [ship]. “There was also a fuel shortage. We bought a shipload of fuel and got Fitzroy Engineering to build us a tank in the Mobil complex, to ensure we had fuel for the whole contract.” When he returned to this country in 1983, Arnold was appointed northern regional manager, “looking after everything north of Tirau”. The company was bought by Brierley Investments in 1988, which promptly began stripping its assets. “In 1989, I decided I didn’t want to carry on. The Brierley influence was coming on and they wouldn’t agree to any plant replacements.” However, before he could retire, the role of general manager in Papua New Guinea was offered to him. So once again, Arnold and his wife packed their bags, and set off overseas for another couple of years. He finally left the company in 1991, although continued to consult for Downer for the next few years. Of the many different projects and airports he tackled in his 40-plus years with Downer, Arnold says the Palau job was his favourite. “Palau gave the most interest because of the difficulties we had to overcome getting the gear there, and having to build the fuel tank and so on.” And what does he think of his moniker as “the king of airports”? “I don’t know about that,” he says with a shrug. “I guess, once you’ve built one runway…”
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CONTRACTOR NATIONAL EXCAVATOR OPERATORS’ COMPETITION
Two intense days of skill testing
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1. The routine intricate tasks such as pouring a cup of tea and opening bottles of fizz are also crowd pullers, as this is a public promotion for the industry as much as a competition. 2. The ‘under wire’ task is one of the most arduous. 3. The One Day Job task takes fine skills with a 5.5 tonne machine.
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4. Brandon Crowley, who won the One Day Job, in action. 5. Balancing a couple of tyres on top of a post was a new and innovative task this year.
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THE MAIN COURSE involves competitors completing 12 to 15
activities in 60 minutes, including excavation exercises and an emergency scenario where contestants must respond well to a realistic emergency situation involving first-aid skills and emergency response. The One Day Job event sponsored by Contractor magazine requires competitors to construct something using a 5.5-tonne excavator and whatever tools at hand. This year these included a long handled shovel. While the real task would be equivalent to a full day’s work, it is designed to be completed in just 60 minutes. This year contestants had to build a water feature (the same exercise was used in the 2013 competition). CCNZ event organiser Malcolm Abernethy stresses that points are awarded not just for successfully completing
22 www.contractormag.co.nz
6. The dreaded wire hoop test invented by the Manawatu branch.
each task, but also for other criteria such as health and safety knowledge, performance under pressure and strategic planning skills. For example, before any operator digs a trench they should be checking for any buried service lines, and it is amazing how many competitors each year get in such a flap they forget to do this, or simply do not listen to instructions. The routine intricate tasks such as pouring a cup of tea and opening bottles of fizz are also crowd pullers, as this is a public promotion for the industry as much as a competition. “Many of these operators end up being supervisors or junior managers on a construction site,” says Malcolm. “They are the future leaders of a huge and thriving industry, so it’s rewarding to see them in action.”
Written work and ‘theory’ is part of the competition, just as it is on a work project. For the One Day Job Cup, contestants have to price the job and work out a schedule and present this to the judges.
As MC, Neil Ritchie does a great job of keeping the public informed of procedures during the competition and interviews with contestants are part of the presentation.
Proud sponsor of
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Operator Competition
MAY 2017 23
CONTRACTOR NATIONAL EXCAVATOR OPERATORS’ COMPETITION
The competition site is a ‘working’ site and contestants have to be very aware of the site hazards. Contestants get a tour of all site hazards before the competition starts.
Above: A small army of volunteers, mostly from the Manawatu branch of the CCNZ, start weeks out in the planning, with a full week preparing the site, before two intense days judging and preparing the site after each round. Judging of each contestant’s work is very intense and accurately measured.
Awards night After the scores have been tallied at the end of day
two, various awards and prizes are given out to competitors at the industry awards dinner on the Saturday night. The CablePrice Award is given to first (a big cup), second and third in the Main Course event while the Contractor magazine award (another big cup) goes to the winner of the ‘One Day Job’ event. Humes sponsors a ‘Good Bastard Award’ to the competitor who embodies great teamwork qualities such as professionalism, helpfulness and friendliness. Prizes and equipment are supplied by the event sponsors, which include CablePrice – Hitachi, Connexis, Humes, Hirepool, Z, First Gas, Contractor magazine and Attach2 Equipment and the Manawatu branch of CCNZ, which runs the national event. 24 www.contractormag.co.nz
The 2017 winner, Steve Galbraith, with the contested NEOC Cup.
Contractor One-Day-Job winner Brandon Crowley
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CONTRACTOR NATIONAL EXCAVATOR OPERATORS’ COMPETITION
T H E C O N T E S TA N T S
Contestants line up the night before day one of the competition just after the induction where it pays to listen very carefully to the ‘dos and don’ts’ of the two-day event.
Steve Galbraith
Sam Scott
Hawke’s Bay branch Defending Champion After his win at the Nationals last year, Steve set up Galbraith Earthmovers. His skills proved too much for the other contestants and, as defender, he took out the 2017 title (only the second time this has happened at the competition).
WINNER
26 www.contractormag.co.nz
Manawatu branch Sam used to work for Higgins in Palmerston North and completed a certificate in civil infrastructure and civil plant operation. In 2011 he swapped his excavator for a police car but has not given up his machine skills. This was his second Nationals after coming second in 2013.
RUNNER-UP
Brandon Crowley
Dan Mepham
Bay of Plenty branch Brandon won the Contractor magazine one-day-job cup and it was his second time at the Nationals. He won the BOP regional competition by narrowly beating his father. Through Crowley Excavators, he and his father operate excavators in specialist wetland developments and maintenance projects.
Hawke’s Bay branch Dan works for Gair Contracting, a familiar name at the National competition. He has operated excavators for some six years now and it was his first time at Feilding.
WINNER ONE-DAY-JOB
Josh Keane
GOOD BASTARD AWARD
Michael Bowe
Jason Toomer-Reti Auckland branch Jason has worked for ICB Retaining & Construction for over eight years and is now a foreman of a small team. His younger brother also works at ICB. Jason’s willingness to help out at the Nationals and good humour earnt him the Good Bastard Award.
Anthony (Ant) King Wellington branch Ant has spent 11 years at Goodman Contractors and operates the company’s heavy machinery, including dozers. He won the Wellington branch competition on his fourth try, so this was his first try at the Nationals in Feilding. He is interviewed on page 28.
Bryce Coughlan Northland branch Bryce works for Clements Contractors in Whangarei and his uncle Murray Clements is his boss. He’s worked in civil construction for six years and is studying for a NZ Diploma in civil engineering. He also has a B-grade quarry certificate.
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Otago branch Josh works for SouthRoads and has been in the contracting industry for the past 12 years. He says he really enjoys the earthworks side of subdivisions and trenching for drainage. He is studying towards his NZ certificate in civil works level 4.
Waikato branch Michael works for Fulton Hogan and has worked in contracting for the past eight years, including two years in Adelaide where he worked on a highway over a suburb and the foundations for a new hospital. One of his favourite recent projects has been working on the Litchfield Fonterra plant expansion.
Robbie Gordon Canterbury branch Robbie works for Downers and has been in the industry for some 16 years and is currently a leading operator and supervisor on the Canterbury Southern Motorway project (stage 2).
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MAY 2017 27
CONTRACTOR NATIONAL EXCAVATOR OPERATORS’ COMPETITION
A lesson in stepping up ALAN TITCHALL talks to first time NEOC contestant
Ant King, who won the Wellington branch competition. How many attempts did it take to get into the national finals? I’d been to the Wellington regionals four times, and I was first place this year on my fourth attempt. The excavator competition is a different sort of environment to what I’m used to doing with a machine. I have worked at Goodman Contractors for the past 11 years. Prior to that I was working in a supermarket of all things. I was a night supervisor in a 24-hour supermarket for five years. I knew nothing about this industry when I started, absolutely nothing, and I just made my way up. How did you get into the civil contract business? My next-door neighbour used to work for Goodman Contractors and they were after a truck driver. He knew I could drive a truck and so he came over and asked me if I wanted a temporary job over the Christmas period. So it all started from there. I met up with Lance Goodman, had an interview, did a couple of days driving the truck, and then he said, “there’s more work for you if you wish to stay on”. I said, yeah, I’d like to do that. What sort of machinery do you work on? A lot of the work that I do is bulk moving with 45 tonne and 50 tonne diggers, and they are mixed models. But the majority of my time I spend on a motor scraper and a bulldozer. I only get on a digger if I’m required.
Ant and Ailong King
How did the first day of competition go? Very interesting. At first I over analysed everything and that actually slowed me right down. Today [second day] was a heck of a lot better than yesterday. I just knuckled down and did the job, and that’s what I should have done on day one. I watched you on your round today, you did well (one task involved balancing a log on a post – pictured). Yes, it was close competition. Took a bit of fiddling but I managed to get it balanced and sitting there. And pouring
Proud supporters of the CCNZ National Excavator Operator Competition for 23 years
humes.co.nz • 0800 502 112 28 www.contractormag.co.nz
the cup of tea was a matter of keeping a steady flow. If you stop and start then it tends to splash. You had to dig yourself under a wire. Your machine, and Brandon Crowley’s, came under and out at the same time – a real crowd pleaser. Yeah – the wire! I’ve never done anything like that with a machine. It’s quite an art and technique digging deep enough for the machine to get under the wire without touching it and racing against time. I touched it a few times but that’s part of learning. There’s a few things set up like an industrial worksite but I have never encountered the under wire task before. It just shows the magnitude and the skill of these operators that are out here these days. The winners of this competition are usually veteran national finalists who know what is expected of them. Yeah a lot of them have said it’s a lot easier at the second competition because you’ve got a fair idea of what they expect you to do, and how to do it as quickly as possible. The judges tell me many contestants don’t listen to briefings and instructions, or ask about site hazards. Well that’s part of your everyday job, so it’s mandatory to ask that sort of information before your bucket touches the ground. Service locators, you’ve got to have them – that’s part of your job, it’s for your own safety and the public’s safety. I see you have brought along full family support. Yes, got the family up. My wife and two kids are here and having a marvellous time around the event watching everything just going on. Yep they’re enjoying themselves. And I hear you have another son working alongside you at Goodmans? Yes my son works there as well. He’s an up and coming excavator operator as well. So hopefully we’ll see him here at the nationals in the future.
Regardless of the outcome will you attempt to come back to the NEOC? It’s an excellent event, especially with all the sponsors on board. They and the volunteers play a big part in this competition, and I hear it just gets better and better every year. So hopefully I’ll be back next year; fingers crossed, I will give it a better run.
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MAY 2017 29
CONTRACTOR NATIONAL EXCAVATOR OPERATORS’ COMPETITION
Mini digger for kids Every year Alistair McIntyre (Doug the Digger) attends the regional and national competitions to promote the industry as a professional career path. Parents pay a gold coin donation so their kids can have a go and the money raised goes to Child Cancer. Competitors help out on the mini digger when they get an opportunity and are assessed on how well they brief young children, as young as two, to operate a 1.7 tonne Hitachi mini digger. These points go towards their total score over the two days.
Above: CCNZ’s Tricia Logan mucks in sorting out the little prizes that kids can scoop out of the water tank. Above right: Alistair McIntyre with the local newspaper covering his mini digger for kids programme. Right: Jason Toome-Reti has a turn helping on the mini digger under instructions from Alistair.
The machines The excavators contestants use over the two-day competition are supplied by ‘platinum’ sponsor CablePrice. This year they were the Hitachi Zaxis 130 (13 tonne) and Zaxis 55U (5.5 tonne). CablePrice, Palmerston North, equipment team leader Ryan Cage attends the competition each year to keep his eye on the machines and assist contestants in their use. He says the Zaxis 130 is a very popular model in this country as it is an ideal ‘all-rounder’. “In the past we have supplied 12 tonne machines for the competition so these are the next level and brand new.” The Zaxis 55U is also popular in the industry for use in confined spaces, he adds. “You see a lot of them around Auckland and Wellington; they’re nice compact machines that can get in and do the job. “A lot of smaller contractors and ‘one 30 www.contractormag.co.nz
Above: Ryan Cage, CablePrice Palmerston North, equipment team leader.
man bands’ like them as they are a very versatile machine.” Another first this year was the use of specialised couplers, buckets, grabs and attachments sponsored by Attach2 Equipment for use in the NEOC event.
CONTRACTOR COMPANY PROFILE
Moving in a new
DIRECTION
Alpha Specialised Movers is moving in a new direction now that one of its founders has retired. RICHARD SILCOCK Talks to its remaining director about the change.
Above: In making room for the Kapiti Expressway, this two-storey, 75-tonne house was relocated in one piece on Alpha’s hydraulically raised, five-axle trailer unit.
32 www.contractormag.co.nz
Upper Hutt based Alpha Specialised Movers
is on the verge of a new era following the retirement at the end of last year of cofounder, co-owner and long-time specialist mover, Murray Russell. Remaining co-founder and now sole owner of the business, Chris Ellis has decided to steer the company in a new direction. Looking back to the time of Alpha’s inception in 1994, when the pair formed the business, Chris says the focus was on jacking a house off the foundations, loading it onto a truck and trailer unit and relocating it to a new site – with all the other details pretty well left to the client. “We excelled in taking a project, looking at the degree of difficulty, finding a solution and planning the methodology to execute it in a safe and efficient way,” he says. “In house moving you are handling something that was never really designed to be picked up, put on a vehicle, transported to a new location and unloaded onto new foundations – so you
have to plan carefully otherwise it will turn to a pile of crumbs and a very unhappy customer. “And let’s be frank, the house relocating business is hard, demanding and difficult. Apart from the physical side, you are dealing with interpretations of local by-laws, operating in sometimes atrocious weather at all hours of the day and night, securing and retaining reliable staff, working with difficult customers at times and putting up with hindrances such as traffic and road works along the planned route – these are all pretty much the norm in our line of work.” However the dynamics of the industry are changing, he adds. “Now we are seeing clients expecting and demanding a complete one-package solution. “So when Murray decided to retire from house moving, I bought his share in the business, sold a lot of equipment, reduced the number of staff and will now concentrate on the project management of relocations. “I will also continue to develop another side
‘Alpha 1’ – Chris Ellis alongside one of Alpha Specialised Movers’ Western Star truck units with a wide load, single storey turn-of-the-century house on board.
of the business, where we purchase houses, relocate them to fully serviced subdivisions and on-sell them as a complete package. “This will entail obtaining the necessary consents, liaising with councils and other authorities for permits, doing all the necessary paperwork including the insurance, preparing the site works, subcontracting the actual relocation, carrying out any alterations using our own team of builders, attending to power and plumbing requirements and generally providing the client with a noworries package all ready for them to ‘turn the key’ and move in. “There are some obvious cost benefits in working this way,” he says. “We don’t have the overheads of plant and machinery, we can operate with a smaller team and pick and choose who will subcontract and do the best job for the best price. The client is happy because we are taking on the responsibility of getting ‘all the ducks in a row’ and delivering the total package. “Putting it another way, we are delivering the cake with all the hundreds
and thousands on top, as well as the whipped cream!” When Chris left school at age14, it was, as he says, “Not for me”. “I wanted to be out and about doing different things. I enjoyed working with machinery and tinkering with engines so got a job, first with Olsen Civil Works before moving to Titan’s and then Britton House Movers. “During my time with Britton’s I was invited to assist a large removal company, Almas Movers International, with some of their work in California, which included moving heavy power transformers and oil refining equipment, which was great experience. “I recall one job, where we moved an historical, 7000 square foot, threestorey, 450 tonne house four miles down the road all in one piece.” Teaming up with Murray on his return to New Zealand in 1993-94 they formed Alpha Specialised Movers and they soon established a reputation for finding solutions for difficult moves. “With a bit of a ‘shoe-horn’ mentality we craned houses out of and onto tight
access sites and found answers to what initially appeared to be impossible – whether it meant dividing a building up into manageable sections or utilising new technology to lift a building or structure clear of obstacles while transporting it. “As the business expanded we grew to a staff of 18 and I can recall some pretty interesting jobs. “One entailed purchasing and moving three, 6000 square-foot buildings from the former railway works at Woburn in Lower Hutt. The first building was moved to Maungarakei to become a church and another to Upper Hutt where it was renovated and turned into a private house. The third was transported over the Rimutakas in six sections and transformed into what is now the White Swan boutique hotel in Greytown. “It made headline news when one of the sections was blown sideways by a sudden strong gust of wind on the hill, forcing the trailer unit nearly over the edge and tilting the load, but we managed to salvage it without damage.” In addition to this type of work MAY 2017 33
CONTRACTOR COMPANY PROFILE
Above: An early morning move of a 600 square metre building escorted by pilot vehicles through the streets of Lower Hutt. Top right: A truck and trailer unit with a house on board about to cross a stream in Lower Hutt via a nine-metre long, 25-tonne steel improvised bridge constructed by Alpha. Bottom right: This two-storey house was moved from Paraparaumu to the coastal suburb of Paekakariki on the Kapiti Coast between 1am and 7am, negotiating electrified overhead railway wires and other obstacles along the route. Special attention had to be given to the height/width of the load.
34 www.contractormag.co.nz
Alpha, in association with Tidd Ross Trailers of Hamilton and Palmerston North based company Manawatu Hydraulics, got into designing, manufacturing and exporting custom-built heavy-haul trailer units and hydraulic house jacks to the United States. “This was a bit of a coup for a group of relatively small New Zealand companies. “The contacts I made in the US through this side of the business led to contracting with them on a number of projects and this entailed moving our team to the States in 2005 for a short time to assist a Houston based company move 16 houses. When Hurricane Katrina struck Louisiana in 2006 I again took eight of our guys over to help in the ‘clean-up’ and move houses. “Similarly we assisted when Hurricane Sandy struck New Jersey, by sending over hydraulic house jacks. “Here in New Zealand business continues to be strong and we are managing a number of relocations. Just recently, we were awarded the contract to purchase 33 buildings and
project-manage their relocation from the old Porirua mental hospital to various locations around the lower North Island, a job that will entail 47 separate moves.” Chris is a member of the NZ Heavy Haulage Association and a former chair of the Wellington/Wairarapa branch of the Contractors’ Federation (now CCNZ), a position he held for two years in 2005 and 2006. “Both are important for our industry,” he says. “They provide the glue and voice for members when advocating with local and central government. With the management of bureaucratic regulations beginning to impact on the true cost of house relocation, there is a danger this will jeopardise the industry and is something the Association is conscious of and working progressively with authorities to overcome. “Perhaps there is room for adopting a President Trump mentality of ‘draining the swamp’ and cutting out a lot of this
bureaucracy that has crept in over recent years,” he says with a wry smile. “I’ve been in this industry for 33 years now and I still enjoy it. While the hours are long, every job is different and none are ever the same. I like being out and about, getting to meet a variety of people and solving a problem where others cannot. That’s Alpha’s point of difference – we are solutions orientated. “It may be the end of an era as Murray’s experience in the industry was legendary,”
As a proud sponsor:
says Chris. “Our individual skills allowed us to work well together, each complementing each other’s abilities and we built a successful business, but now I am looking forward to this new evolution of the company over the coming years.” When Chris is not busy managing the business he takes time out for his passion and hobby – restoring ‘collectable’ vehicles, which include a 1927 Cadillac Roadster and a 1956 GMC pickup.
Left:: Negotiating a tight site in Masterton: This 70-tonne family home had to be raised above the driveway fence, necessitating the removal of overhead power lines, the crossing of another property and traffic management along the 2.5 kilometre route to the new site.
0800 15 15 15
We are happy to support drivers who can do really cool things with excavators. MAY 2017 35
CONTRACTOR PROJECT
GULLY MOTORWAY PROGRESSING WELL
36 www.contractormag.co.nz
AERIAL IMAGES BY MARK COOTE PHOTOGRAPHY
There’s been some significant progress made constructing the $850 million Transmission Gully motorway that is beyond the public gaze. RICHARD SILCOCK checks out progress.
SCHEDULED FOR COMPLETION in 2020, work on
this four-lane, 27-kilometre motorway north of Wellington is progressing steadily at a number of sites despite unseasonal wet weather over the spring/summer period. Since the start of the physical works in October 2015 (refer Contractor December 2015) significant earthworks and construction has taken place. With the exception of the northern end, where the motorway will cross over SH1 via a bridge and join the recently completed Kapiti Expressway near Paekakariki at Mackay’s Crossing (refer Contractor April 2017), most of this work is largely unseen by the public travelling State Highways 1 and 58. “The Transmission Gully (TG) project has transitioned over the past eight months from a ‘pioneering’ phase to now largely bulk earthworks and the commencement of some structures,” says Boyd Knights, the project’s new construction director. “Most of the current work taking place is
pretty much in the ‘greenfield’ areas and has involved quite a bit of preparatory work such as the building of access roads, drainage, stream diversions, tree-felling and relocating some utilities such as the main Kapiti gas pipeline – 80 percent of which is now complete. “With the wetter than usual summer, ground moisture has been an issue and we are using a number of methods to ‘dry out’ the ground,” says Boyd. “This has included ‘discing’ with tractor-drawn agricultural harrows and applying lime stabilisation.” In addition to the weather, another of the challenges facing the contractors has been gaining access to a number of extremely steep gullies. “There are a number of really steep gullies which are tight and confined, and can only be accessed by single lane declines of up to 35 degree slopes,” says Boyd. “Once these gullies are cleared of vegetation intricate earthworks using small excavators are utilised to establish
Above: Bulk earthworks in the south behind Cannons Creek with Porirua in the background. Opposite page: Aerial view looking north towards Kapiti along the Transmission Gully with the access road and Te Puka stream visible.
MAY 2017 37
CONTRACTOR PROJECT
Above: Ecologists catching native fish species in Te Puka stream. Right: Aerial view of an excavated section of the alignment. The hydroseeded embankments are to maintain stability. Below right: Sediment laden and flocculated ‘clean’ water in one of the sediment filtration ponds.
38 www.contractormag.co.nz
a suitable foundation base before they are filled in. “The earthworks being carried out are currently taking place at a number of sites along the alignment immediately south of the existing SH58 interchange at Pauatahanui. Some one million cubic metres of earth has been excavated to date. In addition, significant earthworks are underway for the construction of the James Cook Interchange to the east of Whitby and Porirua where connections will be made with local link roads.
At the southern end of the project near Linden, soil nail walls are being constructed to support the approach to the interchange bridge that will span SH1 and provide access to the motorway for traffic heading north off the highway. Piling has also commenced for the bridge foundations, and a large pine plantation in the path of the motorway alignment is being harvested nearby. Over six and a half million cubic metres of earth is expected to be excavated during the motorway’s construction. It comprises silty clays and alluvium, however highly
Above left: A Goodman’s 65-tonne excavator loading a dump truck in the mid- section of the project Above right: Widening of an existing bridge on SH1 has commenced to cater for the additional lanes of traffic.
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CONTRACTOR PROJECT
Above: Excavator and dump trucks cutting through a hillside in the mid-section of the project. As an indication of the size of this massive project, some 220 machines are operating on any given day along the alignment, ranging from 65-tonne excavators through to D6-D10 tonne dozers, along with motorscrapers, compactors and a flotilla of dump trucks.
40 www.contractormag.co.nz
fractured rock is now being encountered as excavators approach the specified depth for the alignment. Work has also started on the project’s most complex and longest bridge. This three-span structural steel bridge over the Cannons Creek gully will be 230 metres long and 60 metres high. Pier excavations, rock bolting and shotcrete work for the foundations is well advanced. The piers will be constructed of reinforced concrete and the two bridge abutments will be constructed on top of 10 1.5-metre diameter reinforced concrete piles. The piers will be socketed into the substrate to a depth of around 12 metres. A large 220 tonne crawler crane, which was imported to work on the Kapiti Expressway bridges, has been mobilised to assist in this bridge construction. At Mackay’s Crossing, the main reticulated gas pipeline has been largely relocated. Once completed, preloading of the ground will take place and work will commence on the abutments for a four-lane bridge over SH1 which will link the motorway with the Kapiti Expressway. A new water filtration plant has also been constructed nearby to replace an old filter bank
which was in the path of the new motorway. To prevent sediment laden water to run-off into streams and nearby Pauatahanui Inlet (a large tidal estuary and home to some 50 bird species) sediment retention ponds have been constructed. These use a process of flocculation and ‘sieve socks’ to filter the water and trap the sediment. Clear ‘treated’ water is then decanted off the top of the ponds before being released back into the streams. At both the Horokiri and Te Puka streams ecologists have temporarily relocated native fish species to a similar habitat. The fish will be returned to the streams once stream diversions have been completed. In addition skinks, geckos and some rare worms have also been relocated. As an indication of the size of this massive project, some 220 machines are operating on any given day along the alignment, ranging from 65-tonne excavators through to D6D10 tonne dozers, along with motorscrapers, compactors and a flotilla of dump trucks. The motorway is being constructed under a PPP contract between the government (NZTA) and Wellington Gateway Partnership, which has contracted CPB (formerly Leightons) and HEB Construction in a joint venture to design and construct the motorway, with URS and
AECOM assisting with design. Geotechnical engineering is being done by Gaia Engineers and Boffa Miskell is advising on ecological and environmental matters. In addition, some 150 subcontracts have been let for the project and there are currently 20 subcontractors involved in the provision of earthworks and drainage through either dry or wet hire or schedule of rates packages. Other services being provided by subcontractors include surveying, ecology, manufacture of precast concrete items such as bridge beams etc, geotextile supply and labour hire. When completed the motorway will form a key part of Wellington’s Northern Corridor and along with the Kapiti Expressway provide a more direct and safer route for traffic heading to and from Wellington, which by 2026 is predicted to reach traffic volumes in the vicinity of 20,000–22,000 vehicles per day. Transmission Gully will be the first motorway constructed in New Zealand to achieve a ‘Greenroads’ certification, an international sustainability rating system for road design and construction.
New Komatsu dump trucks being used by HEB Construction on the project.
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MAY 2017 41
ADVERTORIAL
COMPOST COVERED with KOMPTECH
Compost producer BioRich has improved operating efficiencies – even in the depths of a wet winter – with the recently released Komptech Nemus 2700 mobile hydraulic drum screen.
When established New Zealand compost producer BioRich was looking to improve its ability to process carbon feedstock efficiently, operations manager Nigel Halpin’s thorough research of available machine technology on the market led him to Komptech. Currently producing 40,000m3 of compost, the Napierheadquartered company has been successfully providing waste solutions to a wide variety of businesses since 2004, including slaughterhouses, pack houses, wineries, food companies and wool scours. A vital aspect of the BioRich operation is the sourcing of carbon feedstock material such as bark, which sometimes needs to be transported from over 250km away to the BioRich processing site. This impacts pricing and availability, and adds some uncertainty. The supply of carbon feedstock must also be matched to the company’s overall capacity and commitments. To ensure this, materials screening needs to be efficient. Nigel spoke with several operators in the region about their choices of screening technology. It became clear that Austrian manufacturer Komptech could offer both the robust processing 42 www.contractormag.co.nz
abilities and after-sales support his firm needed. Founded in 1992, Komptech is a leading international manufacturer of machines and systems for the mechanical screening and shredding of compost, solid waste, and the processing of woody biomass for use as a renewable fuel. Komptech New Zealand providing a direct link to the Komptech factory, customers such as BioRich can invest in the manufacturer’s extensive product range with peace of mind. Nigel opted for a Komptech Nemus 2700 mobile hydraulic drum screen, which has now been in use through both winter and summer seasons and with a comprehensive customised Service Contract package the machine receives regular fixed price servicing at our site. The machine itself, the commissioning process and back-up support offered by Komptech New Zealand have all impressed, says Nigel. “Delivery came at just the right time to meet our winter screening obligations last year. Komptech New Zealand did a complete commissioning program for us and are available whenever needed,” he says.
“The Nemus’ ease of use, output and reliability allowed us to meet our demanding winter screening requirements and really paved the way for future opportunities. To date we’ve processed 40,000m3 of top quality product; more than double our previous abilities. “This also eliminated the need to hire in contractors.” According to Nigel, one thing that really surprised BioRich was the quality of the product from the Nemus, which is much more consistent than with other screens. He has also been impressed by the ease of switching between the 15mm and 20mm drums the company uses. “The ease with which we can service the machine and open it up to clean and change drums has really been a game-changer. This translates to more time screening, which allows us to sell more product,” he says. The Nemus’ ability to screen wet material and in all weathers has likewise resulted in a major production-boost for the company. Recently introduced to the Komptech screen range, the Nemus 2700 combines well-regarded features Komptech has developed
and incorporated into its machines over time, along with new, practical solutions such as a two-stage radiator induction screen for easier cleaning, larger material intake support wheels, a one-piece corrugated edge fines discharge belt, a new low-wear collecting conveyor scraper reflect and large 5m³ hopper. The Nemus 2700 also features improved material flow over its predecessor model, providing for up to 10 percent more throughput, with greater clearance between the drum and sidewall allowing for a wide range of materials to be processed. “The ability to lower the sidewall and extend the drum really impressed our operator,” continues Nigel. “The ease and speed [with which we can do this] means we can keep on top of daily maintenance and cleaning, which translates to a better, more consistent end product. “The resulting increase in production has allowed us to expand our screening options and explore new products and mixes.” Currently employing nine staff, BioRich now continues to grow its business and is now looking at the purchase of a compost turner in order to add further efficiencies to the business and further refine its quality product offering. MAY 2017 43
CONTRACTOR COMMENT
Not just a job, but a career in civil construction PETER SILCOCK, CHIEF EXECUTIVE, CCNZ
LAST WEEK CCNZ convened a meeting of branch chairs and the
Executive Council. The clear message was that getting enough people with the right qualifications is the biggest challenge the industry is facing. That was certainly not a surprise. The infrastructure pipeline report regularly published by the Treasury Infrastructure Unit shows that we are doing unprecedented levels of work. With more than $11 billion per annum to be spent each year for the next 10 years on infrastructure, this is not just a peak of a boom bust cycle, this is a new level of work that we need to gear up for both in terms of people and equipment. Population and economic growth, earthquake work, renewing or replacing our aging three waters infrastructure, the broadband rollout, responding to increasingly frequent climate events and building more resilience into our infrastructure are all contributing to this increased level of work. There is a projected shortfall of 30,000 people over the next three years to resource New Zealand’s construction industry. If 20 to 30 percent of that relates to civil construction that means we need another 10,000 people over the next three years alone. That is a major challenge for an industry that is already short of people. The reality is that we have been considered as a “last resort” for job seekers; the poor cousin of other construction industry jobs and a male-only domain – “If you can’t get a job anywhere else then go and hold a stop-go paddle”. We need to sell the civil construction industry as a viable and rewarding career option. There is a lot we can do. We need to attract people to careers by selling the sizzle of the industry – the iconic jobs, big equipment, technology, innovation and the importance to our everyday lives of the work we do. We need to welcome women on to our sites and proactively encourage them to take up careers in our businesses. We need to ride the wave of the public’s growing awareness of the importance of infrastructure. With the launch of CCNZ’s Civil Trades programme in late 2015, we have created a career path for those people on site that can proudly sit up there with other building trade qualifications. By offering people a career, not just a job, we significantly improve the chances of attracting people with the right attitude that can quickly develop the skills we need.
The campaign will take a nationally coordinated approach that will engage and use the reach of our branches, national office, contractors, associate members and other stakeholders.
The meeting last week decided that CCNZ should lead a three-year civil construction careers promotion campaign. The objective of this campaign is to get more 18 to 35-yearolds taking up careers in the civil construction industry because they see it as a viable and rewarding career option. Along the way we need to promote a better understanding of the diversity of the civil construction industry (what industry is and what we do), the variety of careers available at all levels and across all disciplines and the role of women in the industry. We also need to develop an effective tool to transition people from awareness/interest into employment in the industry. Once we have sparked interest we need businesses to offer careers and to support and develop people as they join our industry. The campaign will take a nationally coordinated approach that will engage and use the reach of our branches, national office, contractors, associate members and other stakeholders. There is already a lot of work going on with people visiting schools and attending careers days and using online tools to promote work opportunities in the industry. We certainly don’t want to reinvent the wheel. What we want to do is develop some consistent messages with appropriate hard and soft copy resources including background stories, information, images and industry champions that can be used by anyone to create a consistent presence (both in person and electronically) in key places and at key events. We want to support and make it easier for those who are already doing work in this area and encourage others to act.
Postal Address: PO Box 12013, Thorndon, Wellington 6144 Physical Address: Margan House, 21 Fitzherbert Terrace, Thorndon, Wellington 6011 Phone 0800 692 376
44 www.contractormag.co.nz
COMMENT CONTRACTOR
Good practice guides underway JONATHAN BHANA-THOMSON, CHIEF EXECUTIVE, NZ HEAVY HAULAGE ASSOCIATION
THE BOARD OF THE NZ Heavy Haulage Association has taken the
decision to collect the various information, guides, information sheets and industry practices and to shape them into Good Practice Guides for each of our sectors. Over the years there has been a wide range of information generated, collected, written, and even un-written that constitutes the industry knowledge that is useful and perhaps mandatory information for operating in our various industry groups. The guides, codes and information sheets have proven invaluable for members to use and provide to various regulatory bodies that document the way that the heavy haulage, house moving and load pilot sectors operate. For example, in 2004 the house mover sector developed the Best Practice Guide to House Relocation in NZ, alongside OSH (as it was at the time) and ACC. The pilot sector produced a Traffic Control Guideline that showed the ways that traffic is managed by loads pilots when accompanying a wide or heavy load. Then in more recent times in conjunction with the Electrical Engineers Association we have developed guidelines for transporting loads under wires, then operating policies for transport companies to use internally. With the introduction of the Health and Safety at Work Act last year, there has been increased focus on companies having operating policies and procedures, and of relevance for this industry the shared responsibility between all parties for health and safety. In the case of this industry, when large loads are being moved on the road, then often there are a number of different contractors working together in a public situation – ‘the road is a workplace’. All the parties need to work together to ensure the safety of staff members who are working together as a team, but also the safety of other road users. To this end the Association’s Board took the decision last year to write and collate together three separate Good Practice Guides for the heavy haulage, housemoving and loads pilot sectors. Work has commenced this year with Working Groups meeting to pull together these documents. It is intended that these documents contain aspects of health and safety, but also the collected industry wisdom about how to undertake various aspects of the tasks in each of these sectors. Our aims for this project are that they will: • Help to lift the level of compliance under the HSWA documentation in particular; • Provide guidance how to comply with various other regulatory requirements – such as the Vehicle Dimension and Mass Rule; • Provide some jolly good advice and information about how
to operate well within our various industry sectors. To quote WorkSafe about the nature of guidelines being ‘Good Practice’ – “These guidelines represent the current state of knowledge (the best available at the time of publication)…” (from the Scaffolding Guidelines released late last year), and it is intended that they are the best knowledge at the time completed, but of course there is always innovation and fresh thinking that will soon add to the collective industry knowledge about these topics. This maps the change in approach that WorkSafe implemented a couple of year ago to documents titled “Best Practice Guides” in the past, now called “Good Practice Guides”. The value of the generating such Guidelines has already been evident with the recent issue relating to ways to
In the case of this industry, when large loads are being moved on the road, then often there are a number of different contractors working together in a public situation – ‘the road is a workplace’. carry our safe piloting practices. Specifically this was the placement of load pilot vehicles on the road in order to give the best warning to on-coming traffic. Industry practice has been to when required for the second pilot on a multi-pilot job to move to straddle the centreline when an on-coming vehicle is not slowing. In conjunction with the lights and signs that the pilot vehicle is displaying, this action attracts the attention of on-coming drivers that have missed or ignored the warning provided by the first pilot. In discussion with various regulatory and enforcement bodies it has been agreed that that situations and procedures which are employed in these situations should be agreed, documented, and placed in a good practice guide. This way not only are the practices standardised across the industry, they also gain acceptance by regulatory authorities, and they are given some measure as to how to recognize that this is standard, good industry practice. We expect that the Guides that we are producing will become the standard that our members will operate to, so setting a benchmark for the whole industry to aspire to. MAY 2017 45
CONTRACTOR COMMENT
Contractors – an integral part of our great journeys TOMMY PARKER, GROUP MANAGER HIGHWAYS AND NETWORK OPERATIONS, NZTA
THIS CALENDAR YEAR is a big one for the Transport Agency. Not
only do we have our programme of activity to deliver, we’re also transforming our organisation to make sure we are ready to respond to a revolution in transport. You may have read the piece in Contractor Perspectives 2017 from our CE Fergus Gammie, where he talks about the future of transport. Technology is making rapid changes to the way people connect and is changing customer expectations – including what they expect from transport. Our customers and businesses want faster, easier and more personalised transport services, and our organisational transformation will ensure we can deliver on customer expectations and make the most of future opportunities for New Zealand. We are also focused on continually lifting our performance – to do better and be better. We have a new strategic direction that will see us working to deliver: • O ne transport system: transform land transport system performance by integrating digital technology with physical infrastructure to create a safe, connected system that works for everyone; • P eople centred-services: simplify our customers’ lives and our partners’ work with innovative services and experiences that make it easy for them to do what they need to; • P artnerships for prosperity: unlock social and economic opportunities for customers, business and communities through targeted partnerships. For us to deliver our new strategic direction, we’ve developed and confirmed a new operating model that will enable us to deliver our strategy and work more effectively with our partners and for communities. Our contractors are an integral part of the supply chain, and are critical in delivering on our commitment to New Zealand – great journeys that keep us moving. This commitment is guided by the government’s policy for land transport. In the past few weeks, the Ministry of Transport released the draft Government Policy Statement for Land Transport for 2018/19 – 2027/28. This signals a continued priority on road safety, value for money and economic growth and productivity. It focuses on infrastructure to support high growth urban areas, supporting the regions, and improving how freight moves around New Zealand. There’s a greater emphasis on resilience in the face of shocks and challenges, and reducing transport disruption. There’s also an increased emphasis on environmental outcomes. A great example of this is the opportunity we have with the East West Link – this provides us with the unique chance to deliver an integrated design that improves transport connections while also rehabilitating the coastal environment for future generations to enjoy. 46 www.contractormag.co.nz
The East West Link will connect Onehunga and Mt Wellington, linking State Highway 20 and State Highway 1. The Onehunga-Penrose area is one of the main industrial, transport and distribution hubs for Auckland and the upper North Island. Yet its long history as a commercial centre has taken its toll on the Mangere Inlet. Decades of degradation have damaged the natural character, ecology and water quality of the area. A large number of contaminated sites, including landfills, are the result of a range of historic and current hazardous activities and industries in the area – including freezing works, railway workshops, chemical and fertiliser companies. Through the East West Link, we have the opportunity to rehabilitate and enhance the natural character of the Mangere Inlet. While it is usual Transport Agency practice to capture and treat the stormwater run-off from new roads, for the East West Link, we are proposing to capture run-off from the wider Onehunga-Penrose catchment as well as from surrounding roads. That’s a catchment area of around 657 hectares. It’s about taking a great opportunity to work towards better environmental and community outcomes. The East West Link, along with Auckland’s Northern Corridor, is currently going through a Board of Inquiry through the Environmental Protection Agency. Submissions on these two projects, deemed of national significance under the Resource Management Act, closed at the end of March with hearings scheduled for late June (for the East West Link) and early July (for the Northern Corridor). Our programme of regionally accelerated projects is continuing to progress at pace. We have now awarded contracts for the construction of four bridges in Northland, a contract to replace the Whirokino Bridge, and we are well advanced in the procurement processes for SH3 Mount Messenger Bypass and the Opawa Bridge replacement. The theme throughout is the continued value we see in engaging with our delivery partners in the most effective and efficient way, and in manner that suits the individual circumstances of each scheme. At the heart of this new model is an emphasis on working more effectively with our partners and stakeholders. We have confirmed our Tier 2 structure, with a new Executive Leadership Team and Senior Leadership Team. Our changes come into effect on July 3. They will most likely mean a change in relationships at some levels as roles shift and refocus, but our transparency and commitment to our supplier partnerships will continue. We look forward to our ongoing collaboration with suppliers in delivering great journeys to keep this country moving.
COMMENT CONTRACTOR
Stuffed up? How to win your next contract CAROLINE BOOT, PLAN A AND CLEVER BUYING
THE ROAD FROM purgatory to redemption is tough. Let’s face it,
we’ve all made mistakes on contracts. So how do you recover when your client most likely knows – darn well – what your shortcomings are? Based on direct feedback from tender evaluators, this article gives practical answers to this difficult question. When you or your team have performed badly or made errors of judgement, there are three possible courses of action when the next tender is up for grabs. Two of them will almost certainly do even greater harm to your reputation. But one course of action, perhaps surprisingly, can not only give you the chance to win back the next contract, but can actually give you the opportunity to score higher than your lesser known competition.
Option 1: Don’t bid – don’t go there. It’s tempting, if you’ve really made a hash of the last job, not to bid at all. After all, why go to the bother if they have seen your worst side – surely there’s no chance that you’ll win a repeat contract. If you pick this option, you’re sending a very clear message to your client that you no longer want to engage with them. That may be somewhat true, of course – particularly if you think you have been judged unfairly. But you should remember is that client organisations, especially in the public sector, have revolving doors and short memories. It’s quite possible that a previous personality clash will no longer be the issue that it was. What’s more, many councils are keener than they’ve been for a long time to attract more companies to bid. They’ll be disappointed if you don’t bid, and they’ll consider you are no longer interested in winning any kind of work with them. If there’s an invited tender in future, you might find yourself off their Christmas card list.
Option 2: Sweep it under the carpet. Perhaps the evaluation team won’t know the gory details about that train wreck performance on the last contract. Besides, they have to judge your bid on face value – ie, they’re not supposed to bring personal knowledge into their marking, are they? Sadly, by taking this option you’re most likely to set yourself up to have your credibility even more damaged. The New Zealand contracting industry is a village, and the chances of one or more of your referees knowing all about your previous mistakes are high. If they express reservations about their willingness to contract you again, you have not only lost this contract, but you’ve lost the trust of your client by trying to cover up your past failures. You’ll do damage not only to your scores on this tender, but also on future tenders to this, and other clients that they know.
Option 3. Confess everything. And make your lessons learned shine as an unrivalled differentiator. Amazingly, you can turn your past disasters into unbeatable competitive advantage, if you are clever. By frontfooting the aspects that went wrong on a previous contract,
When you or your team have performed badly or made errors of judgement, there are three possible courses of action when the next tender is up for grabs.
carefully analysing the contributing factors, and explaining – in detail – the measures you have / are putting in place so it will never happen again, you’re putting your bid in pole position to blitz your competitors on risk mitigation. If your mistakes were recent and relevant to the contract you’re bidding for, then you can bet your bottom dollar that your client is under the thumb screws not to let it happen again. Choosing a new contractor is effectively the devil they don’t know. There’s a real risk that the new contractor will make the same mistakes – or worse ones – on the current project. If, however, your bid demonstrates honesty about your previous shortcomings; thoughtful and constructive analysis on future risk avoidance; willingness to be accountable; and most of all, dogged determination not to let it happen again, then the opportunity for creating trust and respect is far greater than your competitors can match. This is a brilliant opportunity that’s only available to you if you’ve stuffed up. Use it wisely, and you’ll see the benefits! Good luck with your tenders this year. In my recent discussion with a tender evaluator about the results of a tender evaluation (part of their assessment for the NZQA Procurement Certificate), here’s what was said: “One of the suppliers had worked with us on the previous contract, and they’d made a terrible mistake. It resulted in safety issues and major backlash from the community. But what was interesting was that when they tendered for the follow-up contract, they made no mention of the problems they’d faced (and caused) previously. As a result, we scored them very low. “It was such a pity because if they had explained what lessons they had learned from that earlier disaster, we’d have considered them far better informed about the contract than their competitors, and they could have scored much, much higher than their competitors. “By not mentioning it, our suspicions that they were not being honest about other parts of their bid were raised. We didn’t think we could trust them and they were at the bottom of the scoring, when they could have been at the top. Opportunity lost, big time.” • For more information: www.plana.co.nz or www.cleverbuying.com. MAY 2017 47
CONTRACTOR COMMENT
Retentions trust regime – all but vanished? STUART ROBERTSON, PARTNER, & BRENDAN CASH, SPECIAL COUNSEL KENSINGTON SWAN
THE KENSINGTON SWAN/CCNZ ROADSHOW covering the retentions
amendments to the Construction Contracts Act 2002 (CCA) recently concluded. Midway through the Roadshow significant changes were proposed to the retentions trust regime and this article is one of several ways we are outlining the new regime and updating you on those changes. The Mainzeal collapse in 2013 saw subcontractors lose more than $18.3 million in retentions. The changes introduced to the CCA by the Construction Contracts Amendment Act 2015 (CCAA) were delayed to address this, and resulted in the introduction of a trust regime over all retention money. This was a significant step in protecting those from whom retentions are withheld from avoiding the same fate as Mainzeal’s subcontractors.
Retentions trust regime From March 31 2017, a party withholding retentions (Party A) from another party (Party B) under a commercial construction contract holds that money on trust. The regime applies to contracts where the retentions held are above a minimum amount, however MBIE has indicated that regulations will not be released defining what that amount is. Unhelpful as that is, you should assume all retentions must be held on trust. The effect of being held on trust is that Party A may not use the retention money as working capital. It is not available to Party A’s creditors and it is held solely for the benefit of Party B. While Party A can co-mingle retentions with other funds in the same account, we recommend you hold all retentions in a separate bank account. Party A must keep proper accounting records of all retention money held on trust. This requirement largely mirrors section 194 of the Companies Act 1993 and your accountant will be able to confirm you have the correct procedures in place. On request by Party B those accounting records must be made available for inspection at all reasonable times and at no cost to Party B. It would be prudent for Party B to exercise this power on a periodic basis. A separate bank account would make this requirement easier for Party A to administer. The retention money must be held as cash or other liquid assets that are readily convertible to cash. They can nevertheless be invested by Party A, but in accordance with the Trustee Act 1956. Under the CCAA Party A keeps any gains, but is liable to repay any losses. Once Party B has completed its obligations under the contract to the agreed standard, Party A must release the retentions. A clause in the construction contract that delays the date of payment or makes payment conditional, is prohibited and void. If Party A is late in payment, it must pay Party B interest. There are no penalty provisions for breach by Party A of the retentions trust regime, instead Party B’s recourse is against Party A for breach of trust. However, should Party A go into liquidation and if it can be shown a loss of Party B’s retentions was a result of the 48 www.contractormag.co.nz
action/inaction of Party A’s director(s), then there are avenues under the Companies Act to pursue the director(s) personally.
The alternative – the complying instrument The new retentions regime has been complicated by amendments to the CCAA within the Regulatory Systems (Commercial Matters) Amendment Bill. Those changes passed their third and final reading in Parliament on 23 March 2017. Originally the relevant amendments in the Bill were limited to 10 lines, clarifying that the retentions trust regime would only apply to new or renewed contracts from 31 March 2017, not all existing contracts. This change was to rectify a defect in the CCAA, which meant that it would apply to all construction contracts regardless of when they were entered into. In November 2015, this ambiguity was identified by Kensington Swan, and CCNZ took up the charge to get this rectified. As part of that exercise CCNZ and the Construction Strategy Group convinced MBIE that wider consultation was required, resulting in KPMG being engaged. One of several issues canvassed was the effect on contractors’ operating funds if retentions were to be held on trust. Banks were concerned as this impacted the level of security they held. KPMG estimated approximately $500 million would be taken out of Party A’s operating funds immediately on 31 March. Despite the industry being forewarned of this for over 12 months, it became apparent that many had not heeded the warning and gradually weaned retentions out of their operating accounts. To the surprise of many the Bill added three and a half pages of changes to the CCAA after the Select Committee stage. What the Bill proposed was an alternative to the retentions trust regime. The retentions trust regime is still the default position from 31 March. However, if Party A puts in place and maintains a ‘complying instrument’ for the amount of retention money, then it need not hold that retention money on trust. The requirements of a complying instrument in summary are: to be issued by a licensed insurer, registered bank or other person prescribed in regulations; to be in favour of Party B or endorsed with Party B’s interest so that if Party A fails to pay the retention to Party B as required under the construction contract, Party B is able to enforce the promise to repay against the issuer of the instrument; any premium or money payable for the instrument must be fully paid by Party A and all terms and conditions must be satisfied to ensure that the instrument remains in effect; an instrument may be of any kind, for example insurance, a bond or a guarantee so long as it complies with the Bill’s requirements;
the instrument may contain reasonable terms and conditions that relate to the manner or time in which Party B must submit a claim for repayment, but regulations may be made that specify minimum or prohibited terms and conditions for instruments; the regulations may prescribe the form for instruments.
Is the complying instrument a real alternative to the retentions trust regime? The first issue is liquidity, the complaint that the retentions trust regime takes out of Party A’s operating account those moneys. While Party A can co-mingle retention trust money with its operating money it cannot be used for the operating expenses of the company. If Party A elects the alternative and approaches its bank for a bond or guarantee in favour of Party B, then essentially the same situation will arise. The bank will wish to ring-fence the equivalent money to ensure it has sufficient security. That said, it would be a matter between Party A and its bank (or other issuer) to propose alternative forms of security, which if accepted may alleviate this point. The same issue does not arise if the instrument is a form of insurance. In that situation Party A would need to meet any premium. Should Party A elect to use a complying instrument it must keep proper accounting records that correctly record all amounts of retention money protected by instrument(s) and all dealings and transactions in relation to the instrument(s). Those records must be readily and properly auditable and made available to Party B. Further, Party A must keep a copy of all instruments and for each one keep a record of Party B’s interest in the instrument including the amount of retention money protected by the instrument. If the issuer’s liability under the instrument is limited to an amount, this must be recorded together with evidence that the premium or other money payable has been paid to the issuer. Finally, if Party A has committed any failure to comply with the terms and conditions of the instrument this must also be recorded. In some respects, the accounting records required by Party A for a complying instrument are more onerous than if the money was held in the retentions trust regime.
What then of Party B’s position? While under the retentions trust regime the money is held on trust, this is not the case if a complying instrument is utilised. Party B’s remedy is to call on the issuer to repay if Party A defaults. Taking the Mainzeal example, if a global complying instrument, for say $20 million, had been taken out by Mainzeal (the Bill does not expressly deal with a global complying instrument but it is certainly envisaged) and Party A goes into liquidation, then so long as Party B is entitled under its contract to be paid retentions it can demand these from the issuer. Depending on the terms and conditions of the instrument, the issuer may decline to pay. It will then be for Party B to issue proceedings in the court to obtain payment. Realistically that
process may take six to 12 months, if not longer. In the meantime, the liquidation of Party A is progressing with the IRD repaid its debt, the liquidator’s fees paid and secured creditors mostly taken care of. Eventually judgment is issued by the court stating that, for whatever reason (maybe Party A had not paid all of the issuer’s fees) the instrument is not compliant. Party B then has no recourse against the issuer and there are no funds left in the liquidation of Party A. The above example demonstrates that there may be issues regarding what terms and conditions will be contained in the instrument. Bonds are a common feature in the construction industry and the key question is whether the instrument will be on demand (Party B simply needs to make a call on the issuer to get paid) or conditional (Party B must meet some condition prior to it being entitled to call on the issuer to pay). For complying instruments clearly it will be the latter as the Bill specifies that it is only when Party B is entitled to repayment of retentions under the construction contract and Party A fails to pay, that Party B can exercise its rights against the issuer. If this requires the engineer to the contract, or in a smaller contract Party A itself, to issue a certificate of practical completion or final completion, and either person refuses to do so, then Party B is back to issuing proceedings (most likely adjudication) to obtain that certificate. There are also additional risks to Party A. The dissolving of the retentions trusts when a complying instrument is put in place only lasts for so long as the instrument continues to comply. As given in the example above, if for some reason Party A fails to pay its premiums to the issuer or the arrangements between Party A and the issuer provide that the instrument will be void if Party A goes into liquidation, then as a matter of statute what is left of the retention money floating around in Party A’s accounts automatically comes under the retentions trust regime. Party A could then be instantly in breach of various provisions, without being aware of it. This could leave the directors of Party A exposed to potential liability under provisions of the Companies Act. Rather than solving the real issue (the risk to Party B of a repeat of the Mainzeal situation) if a complying instrument is used Party B will no longer have its retentions held in trust, and it will be at the mercy of the conditional bond regime as to when or if ever it will receive repayment of its retentions. A far simpler solution would have been for Party A to require in its contract that Party B provide a bond in lieu of retentions (for all retentions rather than the traditional defects liability period) and then not deduct any retentions from Party B. The retentions trust regime would then not apply at all. Of course, that option is still available. • This article is not a substitute for specific legal advice. If you have any questions about the retentions trust regime or the alternative complying instrument please contact Stuart Robertson, Partner, on 09 375 1151 or Stuart.Robertson@kensingtonswan.com; Brendan Cash, Special Counsel, on 04 915 0780 or Brendan. Cash@kensingtonswan.com, or any of our specialist construction team at Kensington Swan. MAY 2017 49
CONTRACTOR CLASSIC MACHINES
F antastic photo from volume 27 of the Allis-Chalmers Reporter showing a model 460B being push loaded while another returns from the cut. The action was captured on a highway relocation job. Particular points of note are the complete absence of ROPS, windscreens, hearing protection (and probably resource consents) which are so prevalent today. PHOTO: AUTHOR’S COLLECTION
M
The Allis-Chalmers TS-460
CL
A
ASSIC
C H I N E S
Allis-Chalmers was always an innovator when it came to construction equipment although not all of its products were instant successes, its TS-460 motor scraper being a very good case in point. By RICHARD CAMPBELL. ALLIS-CHALMERS ENTERED the motor
scraper market with the acquisition of Cedar Rapids, Iowa manufacturer, LaPlant-Choate in 1952. LaPlant-Choate was one of several companies that A-C bought out in the early 1950s, company takeovers being preferred to spending vast amounts of capital on research & development costs. Why re-invent the wheel when it already exists! Having said that, A-C was also not afraid to invest in its new acquisitions to further improve existing product and thereby enhance its own position in the earthmoving market. LaPlant was a respected builder of motor scrapers, and one of only four manufacturers in the USA offering them immediately post-WWII (the others being 50 www.contractormag.co.nz
LeTourneau, Heil and Wooldridge). At the time of the A-C takeover LaPlantChoate had two successful machines in its lineup, the nine cubic yard T200 and the 15 cubic yard T300. Both of these machines were re-badged and re-marketed by Allis-Chalmers. The major shortcoming of the LaPlant designs was the inability to steer more than 45 degrees to either side of centre, meaning the machines were not all that manoeuvrable and required a lot of room to turn. All the competition were capable of 60 degree turns or better. Allis-Chalmers redesigned the tractor units of both scrapers to address the problem but didn’t touch the bowl assemblies and the end result was the “new” TS260 and TS360.
At the end of the 1950s the market trend was going toward larger motor scrapers with capacities in excess of 20 cubic yards struck. As Allis-Chalmers’ existing range of machines did not meet the new capacities being requested, some serious R&D money had to be invested in designing an all new machine, culminating in the Model TS460. Now, the TS460 was a brute of a machine, and the largest motor scraper that Allis-Chalmers had ever built up to that time. While it did bear a family resemblance to the existing TS260 and TS360 it was purely cosmetic as the TS460 was a completely new machine from the ground up. With all-hydraulic bowl and ejector and
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3
2. 1962 factory picture of the initial production TS460. As you can see it is a big brute of a machine and AllisChalmers had great hopes for it. This unit is fitted with a Farr aircleaner and the characteristic Allis-Chalmers curved exhaust pipe. PHOTO: AUTHOR’S COLLECTION
3. Two 460Bs carve up the earth on Interstate 85 in Virginia, USA. These two belong to BG Young & Sons, a prominent Allis-Chalmers user. 4
PHOTO: AUTHOR’S COLLECTION
4. In New Castle Pennsylvania, one of Bracken Construction’s early AllisChalmers 460Bs gets a load of wet and heavy material on the Route 422 bypass. The conditions are fairly cold and miserable so the operator has placed a sheet of cardboard across the entranceway to the cab to retain some heat given off by the engine! PHOTO: AUTHOR’S COLLECTION
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5. An early production Allis-Chalmers 460C gets a helping hand from an HD-21 on the Baltimore-Washington Industrial Park job site in 1969. The job required 750,000 cubic yards of excavation in good scraper material, sandy loam. Note that the HD-21 has a cable-controlled blade. PHOTO: AUTHOR’S COLLECTION
6. A Mohawk Construction AllisChalmers 460C, one of two used on this Maryland USA highway bypass in 1970, gets a shove from another Allis product, an HD-21. The 460 looked completely different from the previous 460B model due to a complete redesign of the tractor unit. Power up front is a GM 12V-71N. PHOTO: AUTHOR’S COLLECTION
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MAY 2017 51
CONTRACTOR CLASSIC MACHINES Beautiful colour study of an Allis-Chalmers 460C loading damp clay on a Pittsburgh, USA, highway job in 1968. This is a very early production machine as the 460C was only introduced that year. Photo was taken in October so the trees are all beginning to lose their leaves prior to winter. (Photo: Author’s collection)
a hydraulically operated cable apron, the TS460 certainly looked the part. The competition had not been sitting around idly either as Caterpillar, Euclid, International-Harvester and Michigan all had new machines ready to go. In order to gain some early market penetration, the first production examples of the TS460 were hurriedly introduced in 1962 and were powered by a 387 flywheel horsepower AllisChalmers model 21000H turbocharged and aftercooled diesel, mated to a TwinDisc five-speed powershift transmission. Carrying 22 cubic yards struck and 32 cubic yards heaped, the TS-460 weighed 36 tons empty. Unfortunately for Allis-Chalmers, all this haste and not enough testing uncovered a couple of rather serious flaws in the machine.
The first was the engine. At the upper limit of the 21000 engines designed horsepower rating, broken crankshafts, pistons through the sides of blocks and exploded turbochargers were the result. Many engines were replaced under warranty only to fail again soon after reinstallation! The second problem was structural, with cracks in the tractor’s mainframe and bowl. All those problems cost Allis-Chalmers a lot of money and lost reputation, so the type was withdrawn early in 1965, being replaced by the hastily re-engineered model TS460B. Allis-Chalmers was forced to adapt and fit a de-rated type 25000 engine (the largest it made at the time) to the 460B. At the time, the A-C 25000 engine was
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眀眀眀⸀戀椀最戀氀漀挀欀猀⸀挀漀⸀渀稀
52 www.contractormag.co.nz
only rated to 330 flywheel horsepower for mobile vehicle use. With a de-rated engine, suitably reinforced frame, and a cubic yard added to the bowl, some alterations were also made to the apron, replacing the previous cable connection with a solid link arm (similar to Caterpillar and Wabco). The TS460B was introduced to the marketplace in mid-1965. While these fixes did substantially reduce the number of failures and improved operation, they also created another problem – with an empty weight now at almost 40 tons, the machine was seriously under powered for the weight it was expected to carry. Needless to say, sales of the machine were hardly brisk but it did sell, mainly to contractors that already owned fleets of Allis-Chalmers equipment.
䤀一吀䔀刀䰀伀䌀䬀䤀一䜀 倀刀䔀䌀䄀匀吀 䌀伀一䌀刀䔀吀䔀 䈀䰀伀䌀䬀匀 倀䠀 㠀 ㌀ 㐀㠀㠀 吀伀䐀䄀夀
B R I E F S P EC I F I CAT I O N S Allis-Chalmers 460C Engine: GM Detroit Diesel 12V-71N V12, naturally aspirated and rated at 422 flywheel horsepower at 2100 rpm Transmission:
Allison CLT5965 6-speed full powershift
Top speed:
28 mph
Brakes:
Shoes type brakes on all wheels, air operated
Tyres:
33.5x33 16ply E3
Steering:
Full hydraulic, 90° to each side
Capacity:
24 cubic yards struck, 33 cubic yards heaped
Operation:
Fully hydraulic
Length:
45’ 1”
PHOTO: COURTESY OF BUFFALO ROAD IMPORTS
Width: 12’ Height:
12’ 8”
Operating weight:
43 tons (empty), 83 tons (loaded)
Allis-Chalmers also dropped the “TS” from all motor scraper designations during this time so the TS460B became simply the 460B. While the 460B was entering service, it was pretty clear to Allis-Chalmers that the machine was only a stopgap and that further R&D money would have to be spent to turn the 460 into a trusted and reliable machine. As A-C did not have another suitably high-powered engine, it turned to General Motors and fitted a 422 flywheel horsepower 12V-71N engine to the 460. This worked just fine as the GM 12V-71 was a proven engine and put out ample horsepower. Unfortunately it was too powerful for the existing twin-disc transmission and so an Allison six-speed powershift that better matched the torque curve of the 12V-71 was installed instead.
Above: The EMD 1:50 scale model of a 1962 vintage Allis-Chalmers TS460. As you can see it is a fine looking model and has the cable operated apron, only fitted to the first production series machines. As mentioned in the text, the wheel hubs are a little too large in comparison with photos of the real machine and the price tag is even larger!
With its new powertrain, the entire tractor unit was given a makeover (as were other Allis-Chalmers motor scrapers of the period) and the type reemerged as the model 460C in 1968. Weighing over 43 tons empty, finally Allis-Chalmers had themselves a reliable, large motor scraper. The 460C remained in production through the Fiat takeover of 1974, becoming the Fiat-Allis 460C, and was finally pulled from production in 1977 (along with a general downturn in the sales of large scrapers worldwide). During the period of its manufacture, Allis-Chalmers built just over 2100 460s of all models, with the 460C being the most numerous. The Allis-Chalmers TS460 was a contemporary of the Caterpillar 631, Euclid S-24, International 295, Wabco 339 and Michigan 310.
The New Zealand connection While the similar sized Caterpillar, International and Euclid models all found homes on our shores, and despite being quoted to several customers, no Allis-Chalmers 460s were sold in New Zealand.
For the model collector It gives me much pleasure to record that there is an accurate 1:50 scale model of the Allis-Chalmers TS460 available. Manufactured by EMD Models and available through Buffalo Road Imports, USA, the model is well crafted and represents the initial production TS460 with a cable operated apron. On the downside, the wheel hubs are a little too large and the model is expensive at US$395 plus postage. However, it is the only model of a TS460 you are likely to see.
MAY 2017 53
CONTRACTOR MOTORING
Mahindra’s Genio ute
– cheap at twice the price Well almost anyway. This is bare-basics load-hauling at its most budget-conscious, as reflected in the specification list, which is still pretty thorough. By CAMERON OFFICER.
Mahindra Genio 2WD Cab-Chassis Engine: 2179cc four-cylinder mHawk turbo diesel Power: 88kW Torque: 280Nm 0-100km/h: N/A Max speed: N/A Payload: 1260kg Tow rating: 1800kg (braked) Fuel economy: N/A C02 Emissions: N/A Price: $19,990
54 www.contractormag.co.nz
BUT THE HEADLINE here is the price. The single cab Mahindra Genio cab chassis as seen here is a rather reasonable $19,990, plus on-roads. Oh, and the New Zealand-manufactured tray is included in the price too. Especially in single-cab format with that enormous 2.7 metre-long, 1.7 metre-wide tray, the Genio really is, at its core, a self-propelled load-lugger. You can also buy a Genio with a wellside tray for just over the $20k mark. The double cab version of the Genio ($21,890) shortens up the tray length by around 700mm, but what you lose in load space you gain in an extra bench for passengers. Payload decreases to 1100 kilograms for the double cab model. The tray features drop-panels on three sides, tie-down rails running the length on both sides and a fabricated steel headboard. Although if you want a substantial tray liner, you’ll need to BYO; as-supplied, the tray features a ply base, which will scuff up and chip pretty quickly I’d say, depending on what you’re planning on carrying. Yes, you’re right; I am going on about the tray a fair bit. But in
reality, that’s what you’d buy this ute for. It’s not something you buy for status. It’s not something you add a heap of pricey chrome accessories to. But if you have to shift a load of stuff from A to B, this’ll do it. The Mahindra New Zealand marketing manager said it best when he described the Genio to me as, essentially, a “wheelbarrow with an engine”. I think that’s both apt and not at all derogatory. There’s not much to the Genio, but taken together the specification sheet still features its fair share of comfort and convenience items. Outside you get integrated running boards and fog lights up front, while the headlights offer ‘follow me home’ functionality (in that they will remain on for a short while after the vehicle is locked, to allow the driver to get from the vehicle to the front door at night). Inside, air conditioning, powered windows, a rear-window demister, tilt-adjustment on the steering wheel, powered wing mirrors and individual armrests on both seats are all present. Two cupholders sit in the centre console, while under the driver’s seat is a large pull-out tray to hide away laptops, wallets, work books and other items. The manufacturer’s website refers to the ute as having ‘bucket seats’, but I suspect whoever wrote that copy has never seen either a) a bucket seat, or b) the Genio’s pews. They’re perfectly adequate, but bucket seats they ain’t. Naturally, there’s also an MP3-capable stereo on offer, although the absence of Bluetooth hands-free phone connectivity in this day and age is a reminder of the ute’s rudimentary aesthetic and could be a hurdle for some buyers. All Mahindra Genios feature a five-speed manual transmission to stir along the 88kW of power available from the 2.0-litre turbo diesel. It’s actually a gusty-enough engine, offering plenty of torque low down in the rev range. Quite simply, if you’ve one eye on the budget, but the need for a second or even third load-hauler for a growing fleet, the Mahindra Genio is an honest little truck that’ll serve well.
Customised Ford Super Duty a mine manager’s must-have AMERICAN FABRICATOR Summit Truck Bodies had a couple of
interesting rigs on display at this year’s ConExpo. One was this pretty impressive-looking 2016 Ford F-550 Super Duty, with a bespoke body set up for the mine or quarry manager who has everything. Almost everything you see is custom-built, from the bumpers to the running boards and everything beyond the Ford’s capacious cab. The F-550 Super Duty base is one of those domestic US-market trucks that blurs the line between pick-up and full-blown rig. Add the large locker set-up that Summit has plonked on the back and this is a true XL-sized service truck, made to measure. Summit stood out at this year’s ConExpo for another reason worth Googling too; the company’s fully-customised 1973 International Loadstar, rebuilt on a Ram 5500 chassis, has to be seen to be believed. Under the hood is a Chrysler HEMI Hellcat engine too, making a colossal 707hp. But back to the Ford, in case you’re wondering about that interesting-looking paint job, it’s actually a matt vinyl wrap from US camouflage specialists (yes, of course such an enterprise exists), Kryptek Camo. Whether it would stand up to the rigours of the average Kiwi quarry site is, perhaps, another matter though.
MAY 2017 55
CONTRACTOR INNOVATIONS
Powerful mini skid steer Designed to complete complex landscaping tasks typically suited to traditional skid steer loaders, Ditch Witch has introduced the new SK1550, its most powerful mini skid steer model to date. The new SK1550 is powered by a 44hp (32.8kW) Tier 4 Yanmar diesel engine and directs 34.5hp (25.7kW) to the attachment, allowing the machine to complete tasks typically suited for traditional skid steer loaders, including tree handling and sod transfer. Equipped with an available auxiliary flow control with low, medium and high settings, operators can make adjustments to attachment flow and easily run attachments at their most efficient rate, regardless of the project. Leveraging the common look and feel of all construction-grade Ditch Witch compact equipment, the SK1550 also offers a best-in-class operating station for enhanced comfort and stability on landscape and irrigation jobs. The 188 square centimetre ergonomic operator platform comes standard with dual-lever ground drive controls, allowing the operator to independently control each track for precise mobility. For additional ease-of-use, an optional single joystick control is also available. Additionally, the SK1550’s durable design has no daily grease nipples, simplifying maintenance and reducing total cost of ownership. To learn more about the Ditch Witch SK1550 mini skid steer, contact Ditch Witch New Zealand. Phone 0800 396 9583 or 09 570 1002.
Noisy compactor gets silent treatment Some real Kiwi ingenuity is making a difference in helping to maintain the road through the Homer Tunnel between Te Anau and Milford Sound. The Milford Road Alliance, a partnership between the NZTA and Downer NZ, is responsible for the management of this popular tourist route. Alliance maintenance crews use small hand-held petrol-powered compactors to patch the road inside the Homer Tunnel. Fumes from the petrol motors powering these compactors can make them unpleasant to use in a confined area such as this tunnel that has low air flows. However, a solution has been found thanks to some to some clever thinking by the Alliance team. They took an old compactor that was about to be scrapped and converted it to electric power using a 12V motor and large capacity battery. The result is a clean green machine, pictured below, that is ideal for road patching work inside the tunnel. Not only that, it saved $4k over importing a new compactor from overseas.
Water treatment partnership
Mike Dawson
56 www.contractormag.co.nz
Hynds Pipe Systems and Eloy Water have a new partnership in New Zealand and South West Pacific Islands. Eloy Water NZ is part of the Belgium owned Eloy Group, which has built a strong global reputation supplying wastewater treatment plants to 26 countries around the world. The company specialises in modular treatment solutions for single house to mid-size communities that includes three technologies: Submerged Aerated Fixed Film (SAFF); Sequencing Batch Reactor (SBR); and Passive Treatment Filter (Zero Power Treatment Process). This strategic alliance between two family
owned companies shares a common vision and combines more than 110 years of experience in construction and wastewater treatment and provides Eloy Water Global Technology and R&D, supported by the manufacturing strength of Hynds Pipe Systems. In the coming months, Hynds and Eloy Water will introduce a suite of products focused primarily on the treatment of domestic grade wastewater for single dwellings, up to medium size communities. The primary focus of this new business partnership is to be the market leader in development and distribution of wastewater treatment solutions, say the companies. The new venture is under the leadership of Mike Dawson, the previous general manager of Eloy Water NZ.
INNOVATIONS CONTRACTOR
Volvo´s EC950 and A60 The EC950E and A60H represent Volvo’s biggest-ever excavator and biggest-ever hauler. The 90-ton weight class EC950E is Volvo’s new flagship crawler excavator and Volvo´s new 60-ton and range-topping A60H, is the world´s largest articulated hauler. While both machines offer state-of-the-art performance individually, it’s when matched together that customers can experience the unprecedented productivity and ownership advantages these units offer.
The EC950E and the A60H are the ideal pairing for mining or other large projects such as infrastructure, irrigation or major earthworks. Together they can move more material faster and more efficiently than any other combination of Volvo machines. The EC950E will move around 35 percent more material than the EC750D, which was previously the largest machine in Volvo´s excavator range. For the A60H hauler, it will move 40 percent more material than the Volvo A40G.
MAY 2017 57
CONTRACTOR CIVIL CONTRACTORS NEW ZEALAND
CCNZ update Welcome to New Member Maxbuild Ltd, Auckland Branch
Civil industry emergency response In early April CCNZ issued a media release acknowledging the thousands of workers in civil construction and general contracting who were working in the worst of the extreme weather as New Zealand was lashed by the tail end of Cyclone Debbie.
The release highlighted: • the critical services civil contractors provide in emergencies; • that contractors need continuity of everyday work to be able to keep the on-the-ground capability and capacity required in emergencies; • the wide range of work civil contractors do – roads, water supplies, flood protection, slip stabilisation, sewage etc. The release was picked up by radio stations and newspapers and generated questions regarding where staff would come from, how long the work would take and what job opportunities existed in the industry.
Malcolm Abernethy retires CCNZ Executive Officer, Malcolm Abernethy, has announced his retirement and finished work with CCNZ on 28 April after 16 years’ service with NZ Contractors’ Federation and Civil Contractors NZ. Malcolm has provided advice to many members, has been a very strong advocate for contractors and has held key roles with the organisation of the annual conference, the Hirepool Construction Excellence Awards and the Regional and National Excavator Operator Competitions. CCNZ is advertising for a replacement.
Careers promotion supported by CCNZ General Council The General Council, which includes the CCNZ Branch chairs and members of the National Executive Council, met in Wellington in early April. The Branch chairs reported on market conditions, member concerns and branch activities within each region. The overview is that there are good levels of work available in most areas especially in the North Island but margins are tight with the costs of staff and compliance increasing. Many areas are experiencing significant delays in local authorities getting work to market, generally poor procurement practices and the requirement to implement multiple systems to manage prequalification and health and safety compliance from different
clients. Staff shortages and the lack of qualified people were common comments. The key item discussed and supported by the General Council was the proposal to develop a significant three-year Civil Construction Careers Promotion Project jointly funded by branches and National Office. It was agreed that the proposal should now be presented to branches to get their support and funding. The objective of the programme is to get more 18 to 35-year-olds taking up jobs in the civil construction industry because they see it as a viable and rewarding career option.
Update on Retentions The Regulatory Systems (Commercial Matters) Amendment has finally addressed some of the concerns that CCNZ has been raising over the past year regarding retentions. • The changes will only apply to new, and any renewed, commercial construction contracts. • There are no regulations on the minimum amount so all retentions are caught. • Existing contracts (as at 31 March 2017), and their retentions, are not caught. • The default position is that all new retentions withheld (by Party A) must be ‘held on trust’. • While those funds can be comingled with other money, they cannot be used for anything other than remedying defects in Party B’s performance. • Those funds are not available to Party A’s creditors, even if they are secured or preferential creditors. • Party A may, however, elect to put in place a ‘complying instrument’ – eg, insurance, a bond or a guarantee. • With both options there are onerous accounting and recordkeeping obligations on Party A. • Party B is entitled to inspect those records at all reasonable times and without charge. Clarification on the coverage of the changes will see a gradual process of retentions accumulating on trust and, no doubt, requests for inspection of accounting records. CCNZ, working with Kensington Swan, have developed a standard retentions records request letter that is available via CCNZ’s website www.civilcontractors.co.nz. If you have any queries regarding the new retentions regime contact: Kensington Swan Stuart Robertson, Partner, Auckland on stuart.robertson@ kensingtonswan.com, 09 375 1151 or Arie Moore, Senior Associate, Wellington on arie.moore@kensingtonswan.com, 04 498 0843.
A DV E RTI S ERS IND EX Allied Petroleum 57 Auckland Cranes 8 CablePrice 25 CCNZ 44, IBC Counties Ready Mix Concrete 52 Connexis 31 Ditch Witch IFC, 42, 43 First Gas 29 Global Survey 9 58 www.contractormag.co.nz
Gough Cat 5 OMC Power Equipment Komptech IFC, 42, 43 Plan A Heaney & Partners 27 Shoulder Master Hirepool 21, 35 Simple Shelter Humes 28 Southeys Group / Smart-Dig Hynds 15 Super Tyre Warehouse Industrial Seatbelts 26 Synergy Positioning Mimico / Kobelco OBC Youngman Richardson NZRMCA 10 Z
6 14 13 11 39 41 53 OFC, 7, 16, 17 23
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