NEW ZEALAND’S CIVIL CONTRACTING INDUSTRY MAGAZINE
THE NEW AND
JUNE 2015
BIGGER CAT IN THE YARD
INSIDE: Auckland’s missing link: will the dream become a reality? McConnell Dowell’s Roger McRae: a view from the top A G Hoffman: going the distance in the deep south Night moves: Downer reseals Gisborne runway over 14 nights
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SPECIFICATIONS MAKE
MODEL
WEIGHT kg
WIDTH Blade mm
BUCKET m3
DIG DEPTH mm
BREAKOUT kgf
POWER hp @ rpm
FLOW L/min
Hitachi
ZAXIS 17U-5
1880
980/1280
0.044
2190
1630
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1500
0.06
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2300
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3510
1550
0.11
3130
2770
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3960
1740
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3460
2760
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4900
1960
0.13
3630
3270
37.8 @ 2400
120
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5210
2000
0.13
3830
3760
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120
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6470
2000
0.18
4120
4190
45.7 @ 2000
144
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CONTENTS CONTRACTOR
34
INSIDE: Regulars
Highlights / Features
4 Editorial
22
6 Upfront 16 On the Cover 52 Technology
30
34 40
42
46
60 Malcolm Abernethy Civil Contractors NZ 62 Rob Gaimster CCA & NZRMCA
Auckland’s missing link: will the dream become a reality? McConnell Dowell’s Roger McRae – a view from the top A G Hoffman – going the distance in the deep south Night moves – Downer reseals Gisborne runway over 14 nights
All in the family
Christchurch soldiers on
New Zealand calling The golden dream is over and disillusioned Kiwis and out-of-work Australians are heading this way.
Comment 58 Tyler Buckley, Sherwyn Williams Kensington Swan Construction Team
INSIDE:
Rumours of the demise of the earthquake-induced construction boom have been greatly exaggerated.
18 Roger McRae 30 years at McConnell Dowell: A view from the top.
BIGGER CAT IN THE YARD
Night Moves
Running a family business can be fraught with tensions that don’t exist in other businesses.
72 Advertisers’ Index
Profile
JUNE 2015
THE NEW AND
Going the distance in the deep south
Downer reseals Gisborne Airport over 14 nights.
70 Innovations & Contractors’ Diary 72 Civil Contractors NZ Comment
NEW ZEALAND’S CIVIL CONTRACTING INDUSTRY MAGAZINE
Southland contractor A G Hoffman has proved to be adaptable in a changing economic environment.
64 Classic Machines 68 Motoring
Auckland’s missing link
Chris Webb talks to key members of the team whose job it is to make Auckland’s CRL a reality.
48
ON THE COVER The new Cat K-Series medium wheel loaders have arrived through Goughs and one, a 950K, is already impressing its owner at a South Island crushing operation with its performance. See page 16
Heritage trails: The Pigroot There were wild pigs aplenty up the top of the Shag Valley, but it was the mud that gave it its nickname.
56
Early maintenance and operations model results The NZTA’s NOCs are producing the outcomes sought.
63 Rod Auton Crane Association NZ
18
22
48 JUNE 2015 3
CONTRACTOR EDITORIAL
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
Growing up with a case of smallness When I was growing up (rather than out which appears to have taken over these past few years), I remember being genuinely surprised that New Zealand wasn’t the smallest country in the world. “We’re too small”, was a refrain that even as a youngster I was familiar with. Politicians must have loved it, because it explained everything they’d do if they could. Of course I didn’t understand what it meant – and so I must have decided that nowhere else in the world had our particular case of smallness. It wasn’t always that way of course. There are plenty of “firsts” in New Zealand’s history of which we should be appropriately proud (and some of them, I’m sure, that have been claimed because no one else thought them worthy of noting down). To be fair this sense of smallness may have been forced upon us by economic realities (no longer clear to those of us who weren’t there), meaning an underground rail network in Auckland mooted in 1923 never happened. It was this smallness that meant that when the developers of the Sydney Harbour Bridge offered to build one in Auckland – for free – the council’s reply is said to be, “Why would we want a bridge?” Maybe the council couldn’t afford the roads leading to and from the free bridge. It was that same small thinking that meant when Auckland did get its own bridge, it was almost immediately inadequate for the task. And even when the Auckland City Council wanted government support to expand the air raid tunnels under Albert Park into traffic tunnels, it was cheaper to fill them in. Where would Wellington be without the Mount Victoria Tunnel? I believe that things have changed. We know we still have to live within our means, and we may still hear politicians say “we can’t afford that”, but no longer do they say “we’re too small” as a way of indicating we don’t deserve to be well-served by infrastructure. Infrastructure is finally being built to last longer than the next ballot-box; capacity to grow is being included in the plans, and the quality is world-class. So, whether we like it or not, if this country is to thrive we need an economically vibrant Australia. And if New Zealand is to flourish, then Auckland must thrive. But to do that it needs to be able to move people, goods and services (and freight doesn’t move on public transport). Geography hasn’t served us well from that point of view: our options are grow out (see above) – hindered by 50-odd volcanoes, two enormous harbours – and will create even more commuter congestion; grow up (physically and metaphorically – also see above); and maybe even grow down – and for that, see our feature on plans for Auckland’s City Rail Link on page 22. Where might this “grown-up” attitude take us? And how will we know we’ve got there? One day we may even have a bridge or tunnel from Auckland to Sydney. For now, luckily, we are too small for that.
Kevin Lawrence, editor
GENERAL MANAGER & EDITOR Kevin Lawrence DDI: 09 636 5710 Mobile: 021 512 800 Email: kevin@contrafed.co.nz EDITORIAL MANAGER Alan Titchall DDI: 09 636 5712 Mobile: 027 405 0338 Email: alan@contrafed.co.nz REGULAR CONTRIBUTORS Richard Campbell, Hugh de Lacy, Peter Gill, Gavin Riley, Lawrence Schaffler, Richard Silcock, Jeremy Sole. 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/contrafedpublishing @NZContractormag
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
ISSN 0110-1382
4 www.contractormag.co.nz
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CONTRACTOR UPFRONT
Waterview not delayed by faulty concrete Construction on ramp four on the Great North Road Interchange over Auckland’s Northwestern Motorway (State Highway 16) stopped temporarily last month after faulty concrete from Firth was used on the project section. In late April Firth stopped production at one of its Auckland production plants after its testing programme found a batch that didn’t meet specification. The Waterview project was one of 35 customers affected. Defective concrete was removed from a section of the deck that forms the surface for traffic lanes on the ramp, says the NZTA. The final repairs to the affected portal or cross beam will be completed once all 77 super beams for ramp four have been lifted into place at the end of the year.
“Detailed investigations show that we can resume construction without putting either the safety of people – those driving below the ramp or our workers – or the quality of our construction work at risk,” says the Transport Agency’s highways manager Brett Gliddon. “The faulty concrete is not located on sections of the ramp spanning the motorway or the existing interchange. “There is no relaxation of safety or design standards. The lifting gantry’s load is taken by other sections of the ramp that are fully compliant with strength and durability requirements. As well, there will be additional strength from the temporary support structures we have in place during our big concrete pours on the interchange – they are still there.”
Concrete Awards
Going the extra mile
The Concrete Society’s awards are split into five categories: The Monte Craven Architectural Award recognising any construction project for outstanding use of concrete; Infrastructure Award for infrastructure projects such as bridges, tunnels, structures and concrete roads; Residential Award; Landscaping Award; and Technology Award for individuals, firms, research or educational institutions who have made significant contributions to the understanding or use of concrete. The Concrete Award, the society’s premier award will recognise the overall winner of the five category awards. Entries close July 3, and more information phone 09 536 5410 or email concrete@ bluepacificevents.com.
This year will be the fourth for NZ Transport Agency’s GEM Awards. The awards recognise and celebrate suppliers who ‘go the extra mile’ for customer service and health and safety with work that can sometimes go unseen by everyday New Zealanders. Check NZTA’s website www.nzta.govt.nz/about/ awards/gem-awards.html for updated categories and information on the application process, or you can email gems@nzta.govt.nz. Applications close July 17 and the awards will be held September 24.
6 www.contractormag.co.nz
No concrete cancer says CCANZ It’s been a hell-of-a-time for the concrete industry in the press, but the Cement and Concrete Association (CCANZ) rubbishes allegations that elevated alkali levels in cement and concrete are putting the structural integrity of some buildings in jeopardy. Rob Gaimster, CCANZ chief executive, says a series of investigations followed some specific allegations that high alkali cement had put buildings using concrete made of that cement at risk of ‘concrete cancer’ or alkali silica reaction (ASR). “These investigations have determined that there are no reasonable grounds to believe that cement was supplied into the market which did not meet New Zealand standards.” He says the Plant Audit Committee, an independent group of concrete professional specialists, which oversees 170 ready mix concrete plants, determined that concrete manufactured using the cement in question complied with the requirements of the standard for minimising ASR (CCANZ TR 3). “An independent consultant’s report into the supply of the imported cement in question concluded that the cement did not have excessive alkali levels, and that the series of tests which showed elevated levels and created the initial confusion arose because of deficiencies in sampling techniques. “We are pleased that the independent reports have upheld the integrity of our industry. They confirm our belief that any risks associated with high alkali cement have been thoroughly understood by the industry for decades, and are managed appropriately in concrete
manufacturing.” Rob adds that it also confirms the association’s belief that any risks associated with high alkali cement have been thoroughly understood by the industry for decades, and are managed appropriately at the concrete manufacturing end of the industry. “Concrete is manufactured to rigorous standards to ensure alkali levels are managed, and concrete plants are subjected to an audit process for compliance with the NZ Standard 3104 Specification for Concrete Production. “A key role of CCANZ is to deliver successful industry solutions based on technical expertise. In this instance the technical expertise of the industry has been shown to be rigorous and protects all stakeholders including the public who use the buildings constructed with concrete. Concrete is a leading sustainable material of choice for the built environment.” Rob says that prior to this issue, a review of the Standard for cement (NZS 3122) recommended the inclusion of a specific clause for alkali levels and sampling, which will have to be undertaken in future. If the new Standard had been in force at the time, the sampling for the tests would have been done differently, thus preventing the confusion, he adds. The report of the Plant Audit Committee including the consultant’s report is available upon request from CCANZ - email admin@ccanz.org.nz .
Christchurch gateway on its way The obligatory sod-turning for Christchurch’s $112 million gateway roading project has been done and the project is on its way and due for completion in 2018. The expansion of the Western Corridor (State Highway 1) to four lanes is one of the Government’s Roads of National Significance projects (RoNS). The Russley Road section, from Harewood Road to Avonhead Park, is the second to last section of the Western Corridor to be built. As well as
the highway expansion, it will also include construction of a major interchange at the Russley Road/Memorial Avenue intersection (ranked the second highest high-risk intersection in the country), as well as the construction of a gateway bridge for the city. When completed, the Western Corridor will connect Belfast in the north and Hornby in the south, providing better access between the Christchurch International Airport and commercial and industrial hubs.
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JUNE 2015 7
CONTRACTOR UPFRONT
Winter Olympic Games in 2026?
Nelson Street cycle route gets underway Construction by Hawkins Construction has started on Auckland’s Nelson Street cycle route linking Upper Queen Street to Quay Street via the disused Nelson Street off-ramp. The cycle route will connect to the northwestern and Grafton Gully cycleways, providing easier and safer access to and from the city centre. The project is being delivered by the NZ Transport Agency and Auckland Transport in two phases. Phase one will see the construction of a bridge from Canada Street, connecting with the old Nelson Street motorway off-ramp and continuing as a separated twoway cycle path along the western side of Nelson Street to Victoria Street. Construction of the bridge will be the first step in the project. It will be built offsite and when completed will be put in place overnight. Phase two will extend the separated cycle path from Victoria Street down to Quay Street and will also provide a link along Pitt Street to join Karangahape Road and Union Street. The project is expected to be completed by the middle of next year.
This could be big for future contracting. A report that studied the feasibility of the country hosting an Olympic Winter Games in 2026 recommends our Olympic Committee (NZOC) board approaches the Government to carry out a full feasibility study this year. The pre-feasibility report found hosting could be feasible, and calculated the net economic value of around $4.9 billion. The report from Queenstown ad agency and marketing consultancy M&P recommends the potential Olympics be held in Auckland and Queenstown with each city building Olympic villages, media and broadcast centres, as well as continuing to build hotel accommodation and transport infrastructure. Five multi-purpose 5000-person indoor stadia would be built in Auckland, which would temporarily include ice rinks. Two of these stadia would be sent to Wellington and Christchurch post the Olympics. Read more at www.mcgechan.com/nzolympic-winter-games-2026-report/
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Test bridge a world first University of Canterbury civil engineers are carrying out the biggest bridge building tests in the Southern Hemisphere in the College of Engineering’s structures extension laboratory. The test bridge is a 1:3 scale model of a short-span precast concrete bridge and is more than 10 metres long, 2.5 metres wide and 3.5 metres high. Associate professor Alessandro Palermo, who is in charge of the bridge testing project, says they are pushing the scale model bridge to a failure point in order to assess its seismic performance for extreme earthquake events. The tests are a world-first at an international level. “The Christchurch rebuild is a real driver for using new seismic design technologies available from the university’s bridge programme. Our designers are already moving towards low-damage system technology for both structural and non-structural components. “We are investigating technical solutions for bridges which are quick to construct and erect on the site are resistant to earthquakes, with higher material quality control and more importantly that are cost-competitive,” Palermo says. Chegini says that according to SCIRT, about 140 of 225 road and foot bridges and larger culverts in the city were damaged by the 2010 and 2011 earthquakes. “My research will promote precast concrete construction in New Zealand. Many bridges in the country are reaching the end of their service life. Others have been damaged due to earthquakes and need to be repaired or replaced. “One of the major issues associated with replacing damaged or vulnerable bridge structures is the resulting traffic interruption and related economic losses. Currently, most bridges are constructed using cast-in-place technology which is time-consuming, impedes traffic and is demanding in terms of quality control.
Work starts on Maungatapu underpass Contractors are gearing up to build Tauranga’s Maungatapu underpass with preliminary works having started in April ahead of construction in September. The Maungatapu underpass will be built on State Highway 29. It is part of the Transport Agency’s Hairini Link project and, once finished, the underpass will deliver a two lane road underneath the Maungatapu roundabout which will connect directly to Welcome Bay Road. Fulton Hogan was awarded the contract to design and build the underpass late last year. It has carried out detailed geotechnical work on the site and is now preparing the site for construction to begin by clearing vegetation, installing drains to help keep the site dry when work starts, and removing the eight houses from Hammond Street that are affected by the construction. A number of environmental control systems, such as silt screens to prevent run off into waterways, will also be put in place and a temporary road to give residents and contractors access to Hammond Street is to be built. The project is expected to take three years to complete.
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JUNE 2015 9
CONTRACTOR UPFRONT
Winner of the Helen Tippet Award for actively promoting the participation of women in construction was SCIRT Women in Construction
Women in industry recognised Winners of the inaugural Hays NAWIC Excellence Awards celebrate the outstanding achievements women are making in our construction industry. Outstanding leadership and a commitment to helping people reach their dreams saw architect Deborah Cranko win the Professional Woman of the Year Award. After founding her own Wellington-based architectural practice 28 years ago, Deborah has made an ongoing contribution to sustainable design while also mentoring staff and giving back to the community as a youth line volunteer. Mary Bartlett took out Tradeswoman of the Year for embodying the spirit of NAWIC by providing a strong voice for women in building and construction while inspiring them to join the trades in a positive and inclusive manner. Mary has been running her own painting business called Tickled Pink for over two decades and during that time she has grown her business to 20 staff. Judges praised Mary’s ability to buck the norms and provide a platform for creativity and high quality customer service. Lianne Cox of Studio Pacific Design and Sarah Neill of Beca were named joint winners of the Outstanding Achievement in Design Award. Lianne leads Studio Pacific Design’s architectural heritage
team and judges recognised her contribution to the National War Memorial strengthening project. Sarah’s ability to navigate and direct the Wiri Correctional Facility project as lead structural engineer impressed judges who described her as a “superstar graduate”. As a new graduate, Sarah designed 75 percent of the building project. A Stronger Christchurch Infrastructure Rebuild Team (SCIRT) initiative to raise awareness of the construction roles open to women won the Helen Tippet Award for actively promoting the participation of women in construction. SCIRT created a subgroup called SCIRT Women in Construction (SWIC) initiative. Initially intended to recruit more women to fill SCIRT roles, SWIC ended up being much broader. The Excellence in Construction Administration Award went to Kristina Wyschnowsky of Corbel Construction. A business excellence manager, Kristina has worked as a member of the Safety Group Steering Committee for the Canterbury Rebuild Safety Charter. Gail Royston won the Apprentice and Student Award for her dedication and commitment to the construction industry. Judges were impressed by her ability to balance full-time study and a full time role as a quantity surveyor for Beca.
Subcontractors want action on retentions agreement Subcontractors are calling for the government to cut through red tape and get vital legislation providing them with greater protection from the collapse of construction companies in front of parliament. Building and Construction Minister Nick Smith announced last September that the government would introduce changes to the practice of construction firms withholding payments, known as retentions, from firms working on projects. However, Graham Burke, president of the Specialist Trade Contractors Federation, which represents more than 5700 contracting firms in New Zealand, said the changes to the 10 www.contractormag.co.nz
Construction Contracts Amendment Bill haven’t yet made it to the top of the Parliamentary Order Paper. “It keeps getting shunted down the list,” Burke says. “In the meantime, we are still seeing building firms going into liquidation and subcontractors at risk of losing money that is owed to them. “The regulatory impact report has been done and now there needs to be a greater sense of urgency around getting this before Parliament.” • Civil Contractors NZ has made a submission to MBIE on protection of retentions and the March issue of Contractor has Malcolm Abernethy’s article “Contract retention provisions”.
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CONTRACTOR UPFRONT
Immigration changes welcomed Changes to immigration policy are designed to make it easier to recruit and retain migrant workers for the Canterbury rebuild by removing barriers to employers who are recruiting migrant workers when Kiwis aren’t available. The Ministry of Business, Innovation and Employment estimates that an additional 5000 construction workers will be needed between now and the peak of the rebuild in December 2016. The three immigration policy changes will: • E xtend the maximum duration of Essential Skills visas for lowerskilled occupations from one year to three years for applications received between July 2015 and December 2016; • A llow holders of Essential Skills visas (issued from July) working in Canterbury to change employers (within the same occupation) without having to go through the process of applying for a Variation of Conditions on their visa; and • I ntroduce an accreditation scheme for labour hire companies that recruit and employ migrant workers on Essential Skills visas for work in the construction sector in Canterbury. Budget 2015 will invest $33 million of new operating expenditure over the next four years to boost the number of immigration officers at a time of record-breaking visitor numbers, Immigration Minister Michael Woodhouse says. An additional $25.1 million of operating funding from the crown will be accompanied by $7.9 million of cost recovery from immigration fees, to total $33 million of new expenditure on the immigration frontline.
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Australian construction expected to weaken Australia’s construction sector is expected to decline over the next five years due to falling investment in energy and utilities infrastructure and industrial construction, despite government investments in transport infrastructure and the flourishing housing market. Financial and economic research services company Timetric expects Australia’s construction industry output to contract by an annual average of 3.5 percent between 2015 and 2019 – a marked reverse from the 5.6 percent annual increase recorded during the past five years in real terms. The sector’s output is expected to reach a nominal value of US$170.2 billion in 2019, down from US$191.3 billion in 2014. The main cause of the contraction will be the slowdown in the mining sector, low investment in the energy sector, ambiguity over renewable energy targets, and political headwinds. In a bid to support growth and develop vital transport infrastructure by 2020, Australia’s government plans to invest a total of US$45.4 billion on projects across the country, with New South Wales receiving the largest share of the investment. In the middle of last year, it also announced US$10.5 billion in funds for various long-term infrastructure development plans including US$4.5 billion on the Asset Recycling Initiative, US$3.4 billion on high-priority projects, and US$2.6 billion on road and rail works. However, the impact of the investments on the sector’s output is expected to be marginal.
Thumbs up to ACC changes Key ACC changes planned by the government have been welcomed by business sectors across the board. The changes include a new ACC Financial Responsibility and Transparency Amendment Bill and further levy cuts of around $500 million in total between 2016 and 2018. BusinessNZ says that while the new Bill covering the new ACC levy-setting framework won’t come into effect until at least next year, it will promote greater transparency and reduce political manipulation in future levy-setting. “New binding principles will be introduced to ensure the scheme is adequately funded to withstand economic volatilities, while keeping levies as low as possible and stable over time,” it says. “ACC will also be required to report publicly on the longterm implications of the government’s levy decisions. These are very important steps towards ensuring confidence in the ACC scheme is maintained.” Among the recommendations made by BusinessNZ that were not achieved was that consideration be given to ensuring all road users (whether motorists, truck drivers, motorcyclists, or cyclists) pay the real costs associated with their road use. It wants the significant cross-subsidisation of motor cyclists by motorists to be urgently addressed but neither the government nor ACC appears to be in a hurry to do this.
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YOUR GOUGH CAT TERRITORY SALES MANAGERS
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Auckland South Poovan Naidoo 021 860 443
East Cape, Hawkes Bay & Wairarapa Steve Goss 029 271 7895
Waikato & Coromandel James West 029 299 8909 Rotorua & Bay of Plenty Shayne Kennedy 029 200 7270
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CONTRACTOR UPFRONT
Harsh lesson with non-payment Over the past 18 months a contractor has pursued a payment dispute through our legal system taking the case all the way to the Court of Appeal. All the courts, on the way through the process, found in favour of the contractor but did he get the money? No! There are two parts to this sad, but true story. The first is how our legal system can be cleverly manipulated to avoid making a payment, even though the principal was instructed to pay the disputed payment. The second involves completing your due diligence as a contractor on the principal. If you get this part right, then you have a better chance of avoiding the first part, and there are some quick and simple ways to verify the integrity of potential clients that we will reveal later. This story is a salutary lesson in completing due diligence on your client. Read the full story at www.contractormag. co.nz/contractor/harsh-lesson-with-nonpayment
SIT chases would-be truck drivers An ongoing shortage of truck drivers in Southland has led to a transport training course being offered by the Southern Institute of Technology (SIT), but it appears there’s a shortage of people wanting to train as truckies. Last year it was reported that southern transport operators were on a worldwide search for truck drivers due to a massive shortage in the region. The shortage led to transport company HW Richardson Group approaching SIT in a bid to address the problem. As a result, a SIT transport and logistics training hub is offering specialised training and qualifications for students to develop truck driving skills and work towards a certificate in commercial road transport. The 16-week course was due to start early May but has been delayed until SIT receives accreditation and approval documents from NZQA, and a minimum of 16 student enrolments.
Construction loses appeal The construction sector may be unable to capitalise on the industry boom if it doesn’t take measures to attract more potential employees. In the midst of huge demand for construction, research from HR and recruitment experts Randstad reveals that construction firms are becoming increasingly less attractive to potential employees. The Randstad Award employer branding research shows that the attractiveness of the construction sector has decreased for the fourth consecutive year. When asked, only 20 percent of respondents said they would like to work for companies in the construction sector, compared to 26 percent in 2012, 24 percent in 2013 and 22 percent last year.
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Bad boys, bad boys – what you gonna do? Global drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, are planning to open a new laboratory in Auckland later this year. “The last few years have seen tremendous growth in the drug testing industry worldwide,” says TDDA chief Kirk Hardy. “This partnership with Omega Laboratories offers employers in Australasia the benefit of having the fastest turnaround time in the industry in the region.” The new laboratory will offer state-of-the-art drug testing services, as well as research testing methods to address the ever-increasing diversity of synthetic drugs that are flooding into the community. Testing will also include an extended pain management panel that includes the majority of opioid medications that have significant abuse and addiction potential, say the companies.
Local firm wins Trafalgar contract Local Nelson firm Gibbons Construction, working in partnership with Downer, has been engaged by Nelson City Council for Stage 1 of the Trafalgar Centre Reopening Project. The combined bid between Gibbons Construction and Downer was selected as the preferred tender through the tender process, which drew interest from New Zealand’s leading firms in the construction sector. “The combined bid with Downer highlights the benefits that partnerships can have, each leveraging off their respective expertise,” says mayor Rachel Reese. The Trafalgar Centre is scheduled to be reopened in February 2016 after refurbishment and earthquake strengthening.
Revamp for Hamilton’s busiest roundabout Hamilton’s Hillcrest roundabout, the city’s busiest, is to be replaced with a new, larger roundabout which will have three entry lanes for city bound State Highway 1 traffic and a slip lane for vehicles heading onto State Highway 26. The Transport Agency’s Waikato Highways manager, Kaye Clark says the new roundabout will improve safety and help to ease congestion at the intersection. “The Hillcrest roundabout is the city’s busiest with 37,000 vehicles using it every day,” she says. “At peak times it is a major pinch point which we know causes a lot of frustration for people travelling through.” The contract to build the new roundabout went out to tender in May and is expected to be awarded by the end of this month (June). Construction will start shortly afterwards. The cost of the project is $2 million which includes property purchase, design and construction.
Downer wins Porirua roading contract
GRAIN STORAGE AND HANDLING SYSTEMS SPECIALIST • SALES and MARKETING: Management Focused • LOCATION: Canterbury (Rakaia) • TRAVEL: Domestic and occasional International Rakaia Engineering Limited (a subsidiary of REL Group www.relgroup.co.nz) is a respected solutions provider – designing, engineering, manufacturing, servicing and as well importing one of the most comprehensive ranges of farming equipment in New Zealand. REL’s designs are renowned for their attention to detail and innovation, offering a full suite of ‘Integrated Farming Solutions’ – Dairy Sheds, Wintering Barns, Meal Feeding Systems and Grain and Storage & Handling Systems. Within the Grain and Storage product range we represent, on an exclusive basis, international suppliers who provide quality products that offer the latest technology viz: AG Growth International, Westeel, Alvan Blanch and others. Due to growth and market opportunities we are now seeking an experienced Sales and Marketing professional, preferably with industry knowledge in this field, to develop relationships and drive sales of our Grain Storage & Handling designs and products. Reporting to the Rural Business Manager New Zealand, you will be responsible for implementing sales and distribution strategies that will drive growth in both new and existing markets. Particular emphasis will be on major projects in both commercial and rural markets – refer www.relgroup.co.nz and then “Grain Storage & Handling” – “Commercial Grain Projects” The building and maintenance of relationships with new and existing clients, together with our strategic offshore suppliers are key elements of the role. Development and implementation of annual business plans and budgets as well as the creation of promotional/sales programmes, in conjunction with the Rural Business Manager New Zealand; are also important tasks. The person we are seeking will have excellent interpersonal skills, commercial acumen and be exceptionally customer focussed. Previous experience in territory or sales management and a relevant tertiary qualification is preferred; an affinity to the rural environment is deemed essential. Applications attention Aaron Ford, Rural Business Manager NZ aaron@relgroup.co.nz Applications Close 27th of June 2015
Porirua City Council has awarded its 2015-2020 Road Maintenance Contract to Downer. Downer has a long-standing relationship with the council and has been building roading infrastructure since the 1870s. Peter Bailey, general manager Asset Management & Operations for the council, says he is pleased to be working with a Porirua City based business. “Downer has been able to facilitate a significant saving to Porirua residents in the maintenance of our roading infrastructure, and we look forward to collaboratively maintaining our roading network.” JUNE 2015 15
CONTRACTOR ON THE COVER
A NEW AND BIGGER CAT IN THE YARD The new Cat K-Series medium wheel loaders have arrived through Goughs and one, a 950K, is already impressing its owner at a South Island crushing operation with its performance. THE LATE GREAT Steve Jobs once said; “design is not just what it looks
like and feels like. Design is how it works.” This holds true for the new Cat K-Series medium wheel loaders which have been introduced here by Gough Cat, with the first South Island arrival being a 950K taken by Gill Construction. Offering the latest innovations and technology, the K-Series features many components which leverage product designs that have delivered reliable and durable Cat machines for years. The Cat 950K was designed to improve operator comfort, performance and productivity and features some key improvements such as the optimised Z-bar linkage, load sensing hydraulics and increased fuel efficiency, says Caterpillar. Visibility has been optimised by placing line routings and structural components out of the operator’s sight lines. New parallel lift capabilities and 30 to 60 percent increase in tilt force at maximum lift enhance performance and versatility. Blenheim-based contractor Tony Gill, the owner of Gill Construction, 16 www.contractormag.co.nz
says the decision to upgrade to the 950K was mainly due to the technological improvements to the Cat K-series range. “As time progresses technology gets better and this machine is more modernised to improve performance,” he says. Development of the new optimized Z-bar linkage was done in conjunction with the Performance Series Buckets, Fusion™ coupler and Fusion family of work tools to ensure that all components function together to enhance visibility, performance and fuel efficiency. “The Performance Series bucket makes loading really easy,” says Tony. Fusion is the patented wheel loader coupler system from Caterpillar. The Fusion Coupler system provides performance virtually identical to pin on – with all the flexibility of a quick coupler system. Imagine lifting a hundred pound box with your arms fully extended. Now imagine lifting that same load close to your body. That’s the genius of Fusion: designed to integrate the work tool and the machine
“Data comparisons from customer machines show Cat wheel loaders are among the most fuel efficient machines in the industry.” by pulling the coupler and tool closer in to the loader. “Data comparisons from customer machines show Cat wheel loaders are among the most fuel efficient machines in the industry,” says Gough Cat Territory Sales Manager Chris Jones, who sold the 950K. “Several features such as the load-sensing hydraulics, the fuel management system, the engine idle shutdown and shift strategy all contribute to this excellent fuel efficiency.” The 950K wheel loader has been integrated as a system; from linkage and work tool carrying the payload, to the engine, transmission and torque converter moving the machine – the system has been optimised to achieve the lowest cost per tonne. Gill Contracting has two crushing plants, one of them being portable and where you will find the new Cat 950K working to produce road metals, base course, top course and AP products. “The new wheel loader is a little bit bigger than the G series loader we also have, and it does have more power,” says Tony. “I enjoy the factory installed options such as the auto greaser and
payload scales.” Having the Auto Greaser and Cat Payload Control System factory fitted means that these come standard with the machine and are under the Cat warranty, allowing full dealer support. Tony says the 950K is proving to be more operator friendly and his operator is pretty happy with the comfort of the machine. “He likes the heated seat and arm rests as well as the easy-to-use controls and display.” With over 80 years’ experience in the industry, the Gill Construction fleet consists of only Cat machines and Tony says he’s happy to keep it that way as his Cat fleet performs well. “We get good performance out of them, they don’t give us any trouble, and they just keep going. We always get a good resale on them. The availability of Cat parts and the quick back up from Goughs give us peace of mind. “Cat is good quality equipment!” "The 950K is joined in the Cat K-Series medium wheel loader range by the 962K, 966K, 972K and 980K."l JUNE 2015 17
CONTRACTOR PROFILE
Roger McRae on Auckland’s Waterview Connection Project, “the Everest of construction.”
18 www.contractormag.co.nz
McConnell Dowell – a view from the top
Roger McRae has spent most of his working life with McConnell Dowell. He talked to our sister magazine Local Government recently about the industry from his position as the company’s managing director, and this article is based on a transcript from that interview. BY ALAN TITCHALL
ROGER MCRAE HAS witnessed a lot of change in
an industry that he says has “matured” since he started with McConnell Dowell 30 years ago. He was there during the Think Big projects and when the company listed on the NZ Stock Exchange by doing a reverse takeover of Hawkins. He was also there when, in 1991, the company moved its head office to Australia. “When you operate worldwide and the bulk of your revenue is overseas, moving the head office out of New Zealand makes sense both commercially and logistically, so the company is headquartered in Melbourne,” he says. The company also has regional offices in the Middle East, and Asia, while South African company Aveng Group, which is McConnell Dowell’s 100 percent parent, operates solely on the African continent. The New Zealand office, which is also responsible for work in the Pacific, employs in the region of 1100 staff. Roger’s first job with the company was as a site engineer on a tunnel project in the backblocks of central Otago, not far from where he had been raised on a farm. In fact, he was the first family member to escape farming. “I’ve still got a small block of land and a few sheep to remind me of why I didn’t go farming,” he quips. The construction industry was just something he fell into after qualifying as an engineer. “And I’m still doing it, and still loving it.” Asked to single out a career highlight Roger selects two current projects. The first is Auckland’s Waterview Connection Project and what he calls the, “Everest of construction”. He chairs the project’s alliance board. “It’s a $1.4 billion project of immense size, scale and complexity, with a lot of interaction with the community. “To build a tunnel and motorway project of that size and scale ... it just hasn’t been done in New Zealand before.” The other project is the rebuild of Christchurch, where McConnell Dowell works alongside the Transport Agency, Christchurch City Council
and CERA, and with other SCIRT partners City Care, Downer, Fletcher Construction and Fulton Hogan. Roger is a founding member of the SCIRT alliance board. Partnering with firms that are competitors on other projects means breaking down organisational silos, he says. “The thing that really helped us get over the line as part of the SCIRT alliance, and helped us to shed our individual corporate veils, was that we are there for the future of Christchurch and its people, and you keep testing your thinking about what’s best for the project, not what’s best for McConnell Dowell, Fletcher or Downer.” Feedback has proven this approach works. “We’ve got something like 85 percent of the public supporting what SCIRT is doing in Christchurch. And given the disruption to these people … to get that level of support from a community is really quite outstanding.” This collaborative approach between alliance contractors is the way of the future Roger reckons and it is one of the areas where the industry has matured significantly. “The collaborative style of working has been led by the NZTA. They were really the first to roll out the alliance contract delivery approach, and this collaborative style is catching on with local governments. “Obviously the Christchurch City Council is involved in a collaborative working relationship with SCIRT, and we are also seeing signs that the Auckland Council is delivering collaborative agreements. The Lower Hatea Bridge project in Whangarei was another collaborative arrangement. “It is a much more positive and empowering arrangement when you are sitting alongside the client, rather than some of the more structured master/servant relationships of the past.”
“It’s a $1.4 billion project of immense size, scale and complexity, with a lot of interaction with the community. “To build a tunnel and motorway project of that size and scale ... it just hasn’t been done in New Zealand before.”
Health and safety “The industry has also matured a lot in terms of health and safety and I have observed significant advances in safety practices over the past 30 years,” he says. JUNE 2015 19
CONTRACTOR PROFILE
“We are still doing difficult and challenging projects and doing them well, and there’s almost a family culture and value around the way we work together on these projects.”
McConnell Dowell was involved in the development of the Pike River Mine tunnel and went through a painful experience with the mine disaster, narrowly missing losing some of it own workers in the explosion. “We learnt that when we are working in an environment controlled by others we must be aware of anything that could impact on the safety of our people, even though we might be a very small part of the operation. And we need to be much more inquisitive, and much more demanding of understanding the whole safety environment we work in at all times.” The company also welcomes the new health and safety legislation coming into effect this year, and doesn’t see it having much of an impact on day-to-day work. “It is really based on health and safety laws in Australia and, through our Australian connections, a lot of it has [already] been transferred here. “I would like to think most civil construction companies in New Zealand already have practices in place that would comply with the new legislation. “McConnell Dowell now operates a registered private training establishment providing health and safety training to NZQA certification, the only construction company to do so.”
Tomorrow’s challenges Roger believes a major constraint to the industry is its cyclic nature of boom and bust. “This cyclic nature creates uncertainty for construction companies when it comes to investing in people, plant and equipment. “One hope I have is that there is greater consistency with the forward infrastructure workload. That would provide greater confidence for construction companies to invest.” 20 www.contractormag.co.nz
He sees an opportunity for the country to plan development work across the country at a “sustainable pace”. “And to achieve that we need to look crosssector – not just transport, water or wastewater, but all parts of our infrastructure. I think there are greater opportunities in the future for both local and central government to bundle infrastructure packages.” Another challenge for the construction industry is interest from overseas companies, says Roger, particularly Australia where there has been a lot of rationalisation in the construction sector with mergers and acquisitions. “With the downturn in the Australian construction industry (off the back of a downturn in the resources sector) they are looking for opportunities here, particularly with our projected growth in construction over the next 10 years.”
A family culture While three decades is a long time for any company or industry, Roger says there are things that he is pleased have not changed. “One of the things I am quite proud of is the fact we are still doing the type of work that we were doing when I first joined the company. “We are still doing difficult and challenging projects and doing them well, and there’s almost a family culture and value around the way we work together on these projects. “We apply a lot of discipline and engineering expertise into finding a way of doing things differently while developing a safe, efficient way of doing projects that ‘de-risks’ them.” For an engineer, that’s one of the things that gets him excited, gets him out of bed early in the morning, and keeps him awake at night, he adds.
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CONTRACTOR PROJECT
Chris Webb talks to key members of the team whose job it is to make Auckland’s controversial City Rail Link (CRL) project a reality. AUCKLAND’S $2.5 BILLION City Rail Link project passed a milestone in April, with the appointment of two construction consortia to commence the first phase of the CRL in the Downtown area. It signalled a welcome development in what has been a shaky start to Auckland Transport’s ambitious project. But funding uncertainties mean it could be 10 years before commuters reap the benefits of the 3.6 kilometre north-south route, stretching from Britomart to Mount Eden. For a scheme first mooted in the 1920s, CRL has been a long time coming. Yet, for the project, whose purpose it is to create a better integrated public transport system, allowing more connections between rail and bus services, it is still early days. Designed to cater for 30,000 people on the rail network at peak hours – double the number currently – while slashing travel times across the rail network, CRL aims to help free-up disjointed rail travel in New Zealand’s most populous city. Project director Chris Meale says the joint venture appointments meant the City was now; “definitely on the way to building a key missing link in our city’s public transport network.” Britomart Station would no longer be a dead end, and journey times would be vastly reduced. Aotea would be three minutes from Britomart, Karanghape Road six minutes away and Mt Eden nine minutes. There was wide interest from the New Zealand construction industry and beyond, Meale says, as Auckland Transport appointed Downer NZ and Soletanche Bachy JV, and ‘Connectus’, a joint venture of McConnell Dowell and Hawkins, for the first phase of design at a cost of about $3 million. CRL 22 www.contractormag.co.nz
spokeswoman Carol Greensmith says the next phase will provide for a negotiated contract to proceed with construction. She says Auckland Council expects the government to fund 50 percent of the cost of CRL, adding; “However, this can only be confirmed through the formal funding agreement. [Meanwhile], funding for early enabling works is from Council and [has been] approved.” Overall, the government is committed to a ‘joint business case’ with Auckland Council in 2017 and to providing its share of the funding for a construction start in 2020, meaning completion will be mid-2020s. The government has said it is prepared to consider an earlier start to the business case provided that a number of key targets can be met. They include a demonstrable increase of 25 percent in employment figures in the city centre over current levels, (though a deadline has not officially been set) and a significant rise in rail patronage. Greensmith says the latter target, of some 20 million trips, will be met; “well before 2020, and is on track to be reached by 2017”, laying foundations for discussions between government and the council to seal approval for the funding. “The parties have identified the need to address funding, including how project costs are shared between government and council,” she tells Contractor.
Tunnel design The CRL tunnels, amounting to a length of 3.6 kilometres in total, and rising a full 70 metres from Britomart to Mount Eden, will be constructed through ground that varies between rock and soft soil, and with a variation in depth to natural ground
Central Auckland
CRL Early works Britomart to Downtown Shopping Centre Downtown Shopping Centre CRL Early works Albert St from Custom St to Wyndham St Next phase of construction
Auckland waterfront
Aotea Station
K’Rd Station
JUNE 2015 23
CONTRACTOR PROJECT
The CRL tunnels, amounting to a length of 3.6 metres in total, and rising a full 70 metres from Britomart to Mount Eden, will be constructed through ground that varies between rock and soft soil.
24 www.contractormag.co.nz
level of between 40 metres and 0 metres, at the tunnel portal. The rail tunnels between the turnout tunnels, and between the Central Motorway Junction and Mt Eden stations, and the stations at Karangahape, and Aotea will be constructed using a tunnel boring machine (TBM). Excavation is expected to generate some one million cubic meters of spoil, more even than the NZTA Waterview project nearby, since it includes large rail station excavations. The middle section of the tunnel, between Aotea Station and the turnout tunnels near Mt Eden Stations, will be excavated in East Coast Bays Formation. These twin seven metre diameter tunnels will be driven by a TBM installed first at Mt Eden Station to drive downhill in a northerly direction first to a new station at Karangahape, then onwards to Aotea. In this section the sandstone is typically a weak rock so this tunnel section is well-suited to construction with a TBM with the turnout tunnels being constructed using mining techniques.
Upon construction of the first tunnel, the TBM will be removed and reinstalled at Mt Eden for construction of the second, parallel, bore. Though driving ‘uphill’ is more typical in projects using TBM, usually as a means of simplifying ground dewatering, CRL civil design manager, Darryl Wong, says such an option is not possible in this case. That would have meant, says Wong, introducing the machine and servicing it in one of the busiest areas of the city, where mucking out and concrete segment supply would have untold disruption consequences during construction. The two ends of the tunnel (Albert Street and south of the turnout tunnels to the existing Western Line) will be constructed using cutand-cover techniques owing to their relatively shallow depth below existing ground level. The sections of the cut-and-cover tunnels between Britomart and Aotea Stations require the section at Lower Queen Street to be constructed in stages to allow continued pedestrian flows between Customs Street West and Quay Streets. The Zurich Building section will be constructed in bottom-up stages with access from Queen Street. The section within Queen Elizabeth II Square and within the Downtown Shopping Centre is proposed to be entrusted to Precinct Properties to construct. The crossing
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CONTRACTOR PROJECT
At a rail level some 11 metres below ground, Britomart Station is an existing facility which will be modified to accommodate the through tracks and higher capacity required for the CRL. Right illustrates underpinning Britomart Station.
A cut-and-cover ‘box’ typology will be used for Aotea Station, while a mined side-platform approach will be used for Karangahape Station and cut-and-cover ‘open’ box typology used for the new island platform at Mt Eden and Newton Stations.
26 www.contractormag.co.nz
under Customs Street West requires staging between the north and south sides with alternate requirements for traffic management, excavation and construction of the cut-andcover structure. Similarly, Albert Street needs to maintain traffic access. Preparation works include relocating the street furniture, adjustments to footpaths, protecting and/ or relocating services, construction and excavation, and reinstatement. Connectus, the joint venture between McConnell Dowell and Hawkins, will construct the cut-and-cover rail tunnels under and along key transport corridors in the CBD. The early contractor involvement (ECI) and design development phase commenced in March with physical work expected to start in November. The ECI contractor has begun undertaking planning and detailed design, in addition to outline and management planning for the scheme. Connectus will be team relocating an existing storm water pipe between Wellesley and Swanson Streets. The new tunnel will be delivered using specialist micro-tunnelling technology. This will involve a 500 metre long, 1950mm diameter, tunnel driven using the pipe-jacking method, with a precast concrete pipe lining. A launch shaft will be sunk at the junction of Victoria and Albert Streets and the first drive to Swanson and Albert junction will be followed by retrieval of the machine and relaunch to form a shaft at Victoria, where it will continue to the Wellesley and Albert streets junction. CRL construction manager, Scott Elwarth, tells Contractor it is expected that the storm water tunnel construction will start in November, along with commencement of work on the cut-
and-cover works. The remainder of the works are likely to begin next year. Construction planning is one of the major challenges facing the team. The works in the area around Albert Street to the north of the project will take place alongside adjacent property developments, such as a large hotel at Victoria and Albert, explains Wong. Added to that, Precinct Properties is remodelling the Downtown Shopping Centre and building a 36-storey $500 million office tower nearby. If all goes to plan, the CRL tunnels will be built at the same time as this project.
Station construction There are three main approaches to station construction, each of which, says Scott Elwarth, is common in underground stations around the world. A cut-and-cover ‘box’ typology will be used for Aotea Station, while a mined side-platform approach will be used for Karangahape Station and cut-and-cover ‘open’ box typology used for the new island platform at Mt Eden and Newton Stations. A common feature of all, however, will be areas satisfying associated functions such as entrances, plant room spaces, evacuation points and air vents.
Britomart Station At a rail level some 11 metres below ground, Britomart Station is an existing facility which will be modified to accommodate the through tracks and higher capacity required for the CRL. Construction planning of the various sections of Britomart Station requires an approach that allows customers still to receive a good standard of service and the maintenance of
station functionality. Temporary measures will be required as will staging between works on the Up and Down Mains to provide safe public access at all times. A delicate underpinning operation is to be undertaken beneath what is the old Chief Post Office (CPO), requiring the closure of the facility for some three years. Details have yet to emerge, but the technique is likely to involve the installation of bored piles, typically to a depth of between 12-15m, depending on geology Darryl Wong (CRL civil design manager), explains. “An alternative is being developed with the ECI contractor to the reference piled design solution.” Soletanche Bachy’s expertise in this area is expected to be of particular value, as is its knowledge of diaphragm wall foundations on the project. But, Wong points out, “There is not a lot of experience of this form of construction in Auckland.”
Aotea Station Aotea Station could become the busiest railway station in Auckland, AT says. It will have entrances on Victoria Street and Wellesley Street, being close to Aotea Centre in the cultural precinct with the Town Hall, Civic, Q Theatre, and other attractions nearby. Construction for Aotea Station will be staged so that only one of the Victoria Street, Wellesley Street and Custom Street West access routes to the Harbour Bridge is closed at any one time. The station will be constructed topdown, inside a retaining structure consisting of piles to a depth of between 15-20 metres and shotcrete.
Works include establishing a southern construction yard and shaft, while at Wellesley Street West intersection a roof slab will be built and the Albert Street/Wellesley Street area reinstated for public use. The station ‘box’ will be constructed top-down to platform level, followed by structures for the station entrance, ventilation, and mechanical and electrical equipment.
Karangahape Station At a depth of 30 metres, Karangahape Station will be the deepest station on the project. Initial works will include site preparation, utilities protection and, where necessary, diversion, and demolition of existing buildings followed by construction of the main entrance shafts, and excavation of the sloped entrances and platform tunnels. Construction of the permanent works featuring a ‘mined side platform’ method, will use roadheaders gaining access via shafts at Mercury Lane and Pitt St, and Beresford Square. These will be completed after the tunnel boring machine (TBM) has passed through the platform tunnels.
North Auckland Line Tie-In The construction sequence of the various sections of the mined turnouts, and cut-and-cover tunnels to the NAL tie-in, includes construction of the CRL main cut-and-cover sections and excavation of the CRL main tunnels using roadheaders. The size of the excavation profile will provide the TBM with access as well as a structure gauge for the rail junction.
JUNE 2015 27
CONTRACTOR PROJECT
Construction planning of the various sections of Britomart Station requires an approach that allows customers still to receive a good standard of service and the maintenance of station functionality.
The funding issue One of the biggest imponderables in the roll-out of the CRL is that of funding. On June 28 2013, the Prime Minister announced the Government’s commitment to a joint business case with Auckland Council for the City Rail Link in 2017 and to providing its share of funding for a construction start in 2020. The Prime Minister also stated that the Government would consider an earlier business case and construction start date if it became clear that Auckland’s CBD employment and rail patronage hit thresholds faster than current rates of growth suggest. The two thresholds are: • An increase in Auckland CBD employment of 25 percent over the February 2012 estimate (the baseline), which is half of the increase to 2021 predicted in the 2012 City Centre Future Access Study, and; • Rail patronage is on track to hit 20 million trips a year well before 2020. But a Ministry of Transport statement, issued in February this year, noted Auckland Transport’s rail patronage data for the year to December 2014 shows patronage of 12,515,329 trips. This compares to 10,610,956 trips for the previous year. This is an increase of 1,904,373 trips or 17.9 percent but, the Ministry of Transport said, “We expect to see continued strong rail patronage growth until around 2017/18, as the full electric train fleet comes into service and the new bus network is rolled out. From 2017/18, we expect the rate of patronage growth to slow. The MoT concluded: “CBD employment is currently 100,750 employees, compared to the 25 percent growth threshold of 122,528 employees. Rail patronage for the year to December 2014 was 12,515,329 trips compared to the threshold of 20,000,000 trips well before 2020.
28 www.contractormag.co.nz
CBD employment levels and rail patronage are some way from reaching the thresholds set by the Government for considering an earlier business case and construction start date for the City Rail Link.” These figures have been sourced from The 2012 City Centre Future Access Study which was commissioned by Auckland Transport following the then Minister of Transport’s call for further work to investigate options for addressing public transport access to Auckland’s city centre. This was in response to the initial business case for the City Rail Link. The 2013 report Monitoring Employment Growth in the Auckland CBD: A Proposed Approach, by Richard Paling Consulting, considered approaches to measuring CBD employment growth and concluded that the Database provides the best source of annual employment statistics for the CBD. Auckland Council’s response is optimistic, however. “Auckland Council’s 2015/25 Long Term Plan contains the assumption that a funding agreement will be reached with Government before the 2018/28 Long Term Plan is adopted; that this will provide certainty of government funding,” CRL’s Carol Greensmith says. “The Auditor General has confirmed the acceptability of this assumption. The targets are to support an earlier start to the business case, they are not targets to be met before the government will fund the CRL. The government has already agreed to fund the CRL from 2020.” On the question of employment in the CBD, she adds: “A number of private sector organisations are forecasting CBD employment growth to be within the region of the government’s target. The government accepts the validity of the patronage data provided by Auckland Transport.”
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CONTRACTOR COMPANY PROFILE
Hoffman family greet the arrival of a new Sumitomo SH210LC excavator. From left: brothers Dale and Grant, mother Margaret, and father and company founder Gordon.
Constructing a major stock underpass on SH1 with the help of Smith Cranes. A G Hoffman was responsible for the component installation as subcontractor to The Roading Company, which carried out the siteworks.
Effluent pond with a Bentonite liner. Unpredictable wet weather means such jobs can be difficult to price.
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A digger constructing a Novaflow farm drain. A G Hoffman has one staff member employed on such work almost full time.
Going the distance in the Deep South
The latter half of last century was a boom era for Southland contractor A G Hoffman, but the long-established company has had to adapt to the much more subdued tempo of recent years. By GAVIN RILEY. ANYONE LOOKING to understand the increasing struggle for survival of provincial contractors over the past 25 years could do no better than examine the lot of those who make their living in sparsely populated and remote Southland. The second half of the 20th century was kind to enterprising Southland contractors, offering lucrative work on such major schemes as the Manapouri hydroelectric power station, the Tiwai Pt aluminium smelter, and the Rayonier medium-density fibreboard (MDF) plant. But in the 21st century, Southland, with a population of below 100,000, is relying on its traditional (and admittedly thriving) economic strengths of farming, forestry, fishing and tourism, which means selective pickings for those contractors who have shown the resilience, adaptability and determination needed to survive. There is no better example of the rugged and resourceful nature of the Southland contractor than A G Hoffman Ltd, which now has just over one tenth the number of employees it had 40 years ago (an admittedly labour-intensive era) but which has shrewdly altered course to ensure it has a future.
The company is headed by Grant Hoffman, who looks after the civil side of the business, and his brother Dale, who is in charge of the rural work and whose working life is divided between being on site, pricing contracts, and marketing. A G Hoffman was a versatile and fastexpanding general contractor last century but is now more specialist, with fewer but more repeat clients. “In broad terms, half of our workload would be earthworks and drainage relating to industrial and forestry roading and maintenance,” Grant says. “Farm drainage and development has always been an important component of our business operations, which includes stock underpasses, stock water schemes – we’ve recently finished one that is over 40 kilometres long – and occasional dairy effluent ponds. “The balance of our work would be project contract work and maintenance contract work for local industries. Recent projects include siteworks at Mobil’s Bluff fuel storage compound, and upgrading the containment infrastructure, siteworks and underground infrastructure, including constructing a biofiller, for Allied Lorneville freezing works’ new rendering plant that processes offal for export.”
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Grant and Dale have spent a combined total of nearly 70 years with A G Hoffman, the company founded in 1962 by their father Gordon, now 85. Initially employed by the Southland Catchment Board, Gordon actually started out in business in 1952 at the age of 22 when he spent £2000 on a Ruston Bucyrus 10-RB dragline excavator, formed a partnership with a friend to keep the machine working 16 hours a day, and undertook work in the fast-growing farmdevelopment sector. Though the partnership ended after a couple of years, Gordon kept the 10-RB working and was eventually to rack up an astonishing 20,000 hours operating it. After marrying and moving into Invercargill in 1960, he added civil drainage to his farm drainage work, and as A G Hoffman Ltd he went on to win numerous contracts from Invercargill City Council, as well as from the expanding freezing industry and other private clients. “He took on a lot of contracts, stormwater drainage jobs, some of them big jobs,” Grant Hoffman says. “He made good money doing civil drainage, he got into subdivision work, and he also did streetworks and civil reticulation. He started his own subdivisions, a critical
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CONTRACTOR PROFILE thing [in the company’s development]. We’ve still got sections left.” In 1966 A G Hoffman completed the reticulation of Kelvin Heights in Queenstown and a foul-sewer rising main job in Bluff after the main contractor went out of business. The following year the company was subcontracted to Wilkins & Davies to carry out drainage work and install culverts on the Tiwai Road upgrade, part of the preparatory work for the Tiwai Pt aluminium smelter project. Two years later A G Hoffman was awarded Tiwai construction water-supply and maintenance contracts by the smelter’s main contractor, Kaiser Engineers and Constructors from the United States. A G Hoffman also carried out construction of subdivisions to house the project’s labour force. By 1970 Gordon Hoffman had 100 staff and a plant and equipment fleet that included hydraulic and Tracgrip excavators, draglines, graders, a pivotsteer loader, bulldozer, trucks, and a transporter. “He made very good decisions and he put a good team around him to do it. Also he was very ambitious and driven, and there were some strategically major opportunities happening in those days,” says Grant when asked how his father was able to become so successful in just eight years. “Tiwai Pt really opened things up massively. Kaiser wanted to work with local contractors and we had a reasonably established business and business structure. And Invercargill in those days was deemed to be the Hamilton of the south. It was going to be a massive place.” A G Hoffman continued to work on the various stages of Tiwai Pt’s development, including carrying out a $3.3 million earthworks contract on stage five. It also completed an $860,000 underground reticulation contract on Rayonier’s MDF plant at Mataura and the foundation excavations for the milk-powder tower at the Edendale dairy factory. But the 1980s was not an altogether prosperous decade for Southland or its contractors. The Lange reformist government of 1984 seriously undermined the prosperity of agriculture, the 1987 sharemarket collapse took a heavy toll on business, and Southland suffered a specific blow of its own with the 1984 flood, which caused an estimated $100 million worth of damage as almost 150mm 32 www.contractormag.co.nz
The meaning of service in Southland In Southland the name “Hoffman” is synonymous with “service” – both within the company and in the local branch of Civil Contractors New Zealand. Grant Hoffman says the company was built on talented and loyal people. “Their average service in 2000 was just over 20 years, which gave the business a terrific depth of experience and know-how. “Gordon Hoffman is to be credited with growing this culture, on which he built his business, based on mutual loyalty and respect.” The company’s accountant and financial manager, Russell Walker, joined in 1968 and has thus chalked up 47 years; Craig Smith, foreman and machine operator, has put in 35 years since leaving school; while retired machine operator Andy Murray and the late Mike Swain, contracts manager, both worked for the firm for 28 years. Three Hoffmans have given extensive service to the Southland branch of what was until a few months ago the Contractors’ Federation. Gordon Hoffman joined the branch in 1960, was elected vice-chairman in 1963 and was chairman from 1965-67. He was re-elected to the executive in 1970, was chairman again from 1980-82, and continued to help the branch until 1993. He was made a life member in 2003 at the age of 73. His son, Grant, was branch chairman from 1994-97, after which he remained on the executive and continues to support it today. Grant’s younger brother, Dale, is the current chairman. If A G Hoffman is in debt to its long-serving employees then Southland contractors in turn owe an equal debt to the Hoffman family.
of rain fell in just three days. Some 5000 people had to be evacuated from their homes and A G Hoffman’s premises were flooded to a depth of 1.2 metres. Though the company gained some recompense by being contracted to erect stopbanks along rivers to protect farmland and residential areas, it went on to voluntarily forfeit work possibilities elsewhere. In the late 1980s it carried out a number of roading jobs but a subsequent influx of major companies such as Fulton Hogan, Bitumix, South Roads and Works (now part of Downer) made it decide to restrict its roading role to that of bulk earthworks and drainage subcontractor. Grant Hoffman is comfortable with downsizing the 63-year-old company. “Previously we were always geared to service an expanding market. But in the ’80s we had to downsize to survive and now we focus on continuity of work. We have a very experienced and respected base to work from and we focus our attention on the client’s needs and delivering a quality job,” he says. “Switching from main contractor to subcontractor was a conscious decision and the best thing we ever did as it expanded our market and we developed strong business relationships with the
large roading companies, which increased our roadworks market tenfold. “The roading market has tightened since, with shrinking budgets and increased competition. The Southland District Council has to manage nearly 5000 kilometres of roads with ever-increasing pressure from heavy traffic with the expansion in dairying and forestry. “In this increasingly competitive marketplace the major roading contractors are undertaking the earthworks and drainage components themselves and not subcontracting work out to the same extent.” The heady days when his father was building A G Hoffman Ltd at a fast rate may have begun to subside somewhere in the 1980s. But, says Grant: “Southland’s always had a rich hinterland, a really productive base, and Invercargill’s slowly growing. There’s going to be a good future for contractors. “Contractors are opportunists and contracting evolves quickly and adapts amazingly fast. There are always opportunities and it depends how big your balls are and what you really want to do. “Contracting is a very flexible, malleable thing and the region depends on contractors.”
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CONTRACTOR PROJECT
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Night moves To prevent disrupting flights in and out of Gisborne, a specialist team from Downer recently resealed the town’s runway in sections, over 14 nights, while the airport was closed. BY MARY SEARLE BELL
JUNE 2015 35
CONTRACTOR PROJECT
GISBORNE IS A UNIQUE TOWN, its individuality derived by its sheer beauty, the local characters and the fact it’s so hard to get to. It’s not a town you drive through; it’s a destination. Around three hours by car from Tauranga or Napier, its closest neighbours are acres of rolling farmland, vineyards, sleepy villages and the big blue Pacific Ocean. It’s a popular holiday destination for wine drinkers and surfers alike. And unless you’ve got plenty of time and enjoy driving on winding roads, it’s far better to get there by air. It’s a quick and scenic one-hour flight from either Auckland or Wellington. First-time pilots into Gisborne Airport are known to experience a moment of fright when they spot the railway line which crosses the runway, but once they realise there’s no train coming they laugh it off as part of Gisborne’s uniqueness. And unique it is too – locals will tell you it’s the only runway in the Southern Hemisphere with a railway line running through it. Apparently there’s an airport in India somewhere that also boasts this feature, but airport manager Murray Bell says he hasn’t been able to confirm that for certain. Gisborne’s airport, which is operated and managed by the Eastland Group, has a 1310-metre-long sealed runway and three grass runways, suitable for light aircraft. Regardless of whether you fly in on one of Air New Zealand’s 50-seat Q300 planes or the rather-more-exciting-to-fly-in 19-seat Beech 1900s, the landing on the asphalt runway is now smoother thanks to a large section of it being resealed in March. A specialist crew from Downer in Tauranga undertook the $2.5 million design and build contract in conjunction with the 36 www.contractormag.co.nz
Eastland Group and Beca. The last runway reseal was finished in 1998 and had a life expectancy of about 15 years. Murray says they had waited as long as possible before undertaking the reseal, making do with patches and repairs… “but it had got to the point where we needed to reseal it now”. He says the asphalting took place at night to minimise disruption at the busy regional airport. “Work started on Sunday, March 29 and, during the threeweek period of the project, the airport was closed from 8.15pm until 6am the following morning to all traffic, except helicopters.” The work involved milling out the current runway asphalt to a depth of 100mm, then overlaying with a new 100mm asphalt layer. Each night Downer’s specialist crew finished a section 30 metres wide and 65 metres long to ensure the material was sufficiently cooled prior to the first aeroplane of the day. “We needed to make sure each section was completed and the lines repainted on the runway by 5am, in time for the first scheduled flight of the day,” says Murray. Downer says that it had back-up plans to cater for any eventuality, such as a breakdown or adverse weather. “The runway had to be open at 5am no matter what.” To guarantee this would happen Downer employed its specialist paving team from Tauranga, with support from the Downer National Airport team, the local Downer branch and local subcontractors. “Our asphalt production facility, located within a few hundred metres of the main runway was a significant part of the
“Our asphalt production facility, located within a few hundred metres of the main runway was a significant part of the solution.”
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CONTRACTOR PROJECT
solution,” Downer told Contractor. “The close proximity to the project reduced the environmental footprint of hauling asphalt over a longer distance and assisted with the tight delivery timeframe each shift.” To confirm the quality of the asphalt supplied, Downer established a mobile testing laboratory to undertake all asphalt compliance and control testing for the project. This provided immediate access to results for the production teams, engineers and the client. Downer says the results from the field were exceptionally consistent, providing full compliance to the contract specification. The total width of the runway is 45 metres, built to requirements from the 1950s and ’60s, however, Murray explains, just the central 30 metres have been replaced as that is all that would be required if they were to build a new runway to today’s construction standards. This project saw an 870-metre section of the runway’s length completely replaced. In addition, some patch repairs outside the 30-metre strip and taxiway repairs were done, a total of 27,000 square metres. Downer says that, following milling, the exposed surface was swept clean and benkleman beam testing undertaken to identify any areas requiring further attention. Then a polymer modified waterproofing membrane seal was applied. Once this was all approved and passed, asphalt placement began. Using its Super 1603 Vogele paver with multiplex ski Downer 38 www.contractormag.co.nz
achieved the required thickness and slope targets while ensuring a superior, smooth finish. “Compaction of the mix was led by our Bomag Asphalt Manager roller, which continuously gave live compaction data to the operator to ensure consistency of compaction targets. This was supported by a Cat tandem roller with GPS mapping technology to ensure full and consistent coverage.” The contract was divided into three separate stages involving more than 40,000 square metres of asphalt being laid. The work that was finished in April comprises the first two portions of the contract – the 30-metre wide strip from the railway line north and the patching work. Murray says the final portion of the runway from the railway line south will be completed at a later date as it has not deteriorated at the same rate. Eastland Group recently celebrated its 10th anniversary of the operation of Gisborne Airport. The Gisborne-based company, whose business interests include Eastland Network and Eastland Port, has been operating the airport since April 1, 2005, on lease from Gisborne District Council. Since that time, Gisborne District Council has remained the asset owner, but Eastland Group has operated, managed and developed the airport. Eastland Group chief executive Matt Todd says that in 2005, Gisborne Airport was costing Gisborne ratepayers money: “Today Gisborne Airport makes a small profit and is able to commercially stand on its own feet.”
CONTRACTOR BUSINESS MATTERS
ALL in the family Industry consultant JEREMY SOLE reflects on the trials and tribulations of the traditional family business. RUNNING FAMILY BUSINESSES can be smooth and satisfying but, as the founder’s influence diminishes either during the tenure of subsequent generations, or suddenly and catastrophically, they can be fraught with tensions that don’t exist in other businesses. They can also be fraught when some in the next generation, rightly or wrongly, see a new paradigm and new opportunities that are outside what other family members are able or prepared to see. People don’t easily resign and walk away from a family business they have always aspired to be part of, just to avoid these tensions or work for someone else – so these problems have the potential to linger and must be resolved efficiently and to equal satisfaction. Transition to a new generation, a new focus, a new leader, or new owners, presents specific challenges for many family businesses given the ongoing and deep financial and emotional investment on the part of those affected. How the shareholders collectively handle such times will ultimately determine the future of the business and their own financial security and, in some instances, the next generation as well. One option, if there isn’t a clear and clean way forward, is
40 www.contractormag.co.nz
to simply wind down the business over time, sell the assets and then cash in on bonds and retentions as they are released. But if the shareholders wish to eventually sell the business as a going concern then, to entice a buyer at the price they want, they must be able to demonstrate it’s a self-sustaining business capable of functioning successfully without a patriarch or matriarch being the epicentre of operations and strategy. One of the core transition requirements is to wean the culture away from being ‘founder centric’ where everyone looks to the founder as the source of wisdom and knowledge, to a culture more focused on structure, roles, responsibilities, delegation, and accountabilities. Of course this has its challenges when family members want to participate at a meaningful level when there is no easily identifiable place in the structure for them or their skill sets. This need for family to participate can be accommodated outside of the operational, and perhaps also outside the governance, systems. While it may seem like an elegant solution to put a disaffected person in a ‘less important’ part of the business this violates one of the core principles of sustainable competitive advantage which requires excellence and alignment in every aspect of the
business – ie, a world-class business which ever direction you look. This is a critical aspect as it’s quite possible that poor performance even in a low turnover, low yield, or strategically less important part of the businesses’ operations has the potential to create significant brand and reputational damage that will create drag on the whole business and the success of core operations. This issue isn’t limited to family and shareholders as, in a long standing and stable family business, there will also be staff members who have been in the business ‘forever’ and who have become so embedded in the life of the business that, at some level, they feel part of the family. In some second and third generation businesses, these individuals become ‘the untouchables’ who can’t be removed because even family members may have developed a sense of loyalty ‘as if’ these individuals are also members of the extended family. Often these people are the ones who have the external relationships and are holders of the internal culture and are therefore critical to the immediate performance of the business. Some may have been neglected in terms of ongoing professional development to the point they are unable or unwilling to morph into what the business requires subsequent to the transition to a new ownership or operating model. Some may also unwittingly be a choke point and constraint to the business – it can be unhealthy to have ‘indispensable’ people in the business and often, when they are removed, everyone else steps up and significant energy is released into the business. It is critical that de facto family members are dealt with in a
generous and dignified way regardless of whether they are to remain in the business or exit; the way they are treated will become the defining act that establishes employee, and client, understanding of the organisational culture in the new era. Other employees will intuitively understand the need to treat these people with dignity and generosity and won’t expect such treatments to become the norm. Herein lies the most significant risk in transitioning a family business to a more formal and delegated operational and governance structure as part of a modernisation or an acquisition. However, the potential for a road block at this point can be mitigated by early development and staged implementation of a transition plan that incorporates a strategic plan that is responsive to the external environment, and a parallel internal plan that focuses on transition to structured competency and skill-based operational and governance structures. If part of the plan is to divest the business then, either it needs to be well advanced in its transition before the sale, or the new owners need to be sensitive to the probable transition issues before they unwittingly undermine the very things that have made the business worth acquiring in the first place. Of course it is entirely possible that the real agenda of the acquiring party may be simply about market share or pushing the business out of the way. But that’s a bit of a cynical view given that if the acquirer was capable of performing at a higher level than the acquired business they wouldn’t have needed to do the acquisition – so business continuity is usually in the best interests of all parties.
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CONTRACTOR INDUSTRY PERSPECTIVE
Christchurch soldiers
42 www.contractormag.co.nz
on
Construction activity in Christchurch may well have plateaued, but rumours of the demise of the earthquake-induced construction boom have been greatly exaggerated, says HUGH DE LACY.
YOU CAN’T DROP $40 billion in insurance and government money on a region of fewer than half a million people without creating a construction boom, even if initially most of the money is spent on urgent demolition and repairs. Once those two phases were completed, new construction would continue to drive the regional economy for years to come. That would seem to be the wisdom derived from Canterbury’s recovery from the earthquakes of 2010-2011, and rumours that the reconstruction phase has run its course and there’s a rapid winddown in effect simply can’t be substantiated. The fact is that while most of the demolition of buildings, and the repair and reconstruction of infrastructure are well advanced, and despite Fletcher Earthquake Recovery (EQR) winding up its $4 billion residential repairs programme at the end of this year, construction is still booming in Christchurch and throughout the Canterbury region. That’s not to say there isn’t a shakedown under way, and that a lot of smaller companies are dropping out of the game, especially in the painting and decorating niches of the building construction sector. But according to John Ombler, acting chief executive of the Christchurch Earthquake Recovery Authority (CERA), there’s still growth in overall rebuild construction. “The forecasts tell us that we can expect peak activity in construction through to about 2017, before an easing expected in 2018,” Ombler told Contractor. There are, however, variations in the level of activity of the various construction sectors. “For example, EQC’s [the Earthquake Commission’s] Canterbury home repair programme is largely complete [but] at the same time there is still considerable repair and rebuild happening, and a huge amount of public sector work still in the pipeline.” This includes schools, tertiary institutions, health facilities like Christchurch hospital, the Metro Sports Facility and the East Frame residential neighbourhood. “We are about to see the opening of Christchurch’s new $53 million Bus Interchange, and work on the Justice and Emergency Precinct is well progressed.” Ombler said that overall building consent figures are on “a steady upward trend that we have seen every year since 2012”. He noted that SCIRT, the Stronger Christchurch Infrastructure Rebuild Team of leading contractors charged with the rebuild of the city horizontal infrastructure, is 70 percent of the way through its work programme. “Indicators such as economic growth and employment continue to show Canterbury leading the performance of major centres in New Zealand,” Ombler says. That may well be the case overall, but at the lower end of the food chain there are persistent reports of smaller entities falling over or copping out.
JUNE 2015 43
CONTRACTOR INDUSTRY PERSPECTIVE
Paul Robertson, the principal of mid-sized construction and earthworks company Civil and Land, based in Amberley, North Canterbury, reckons there’s a slump in the work available for companies like his, which has a permanent workforce of about 20. He cites the case of the Hurunui District Council, the northernmost of the three districts and the city affected by the quakes, tendering out a five- to 10-year road maintenance contract. “I’ve never seen so many contractors apply for it: you usually only get two or three like your Fulton Hogans and Downers, but 12 main contractors have applied for this one – which just shows there’s no confidence in the rebuild because contractors are now looking for work in the longer term,” Robertson said. However, he did cite meeting health and safety (H&S) and compliance measures as a major burden for smaller firms. Fletcher EQR’s arrival on the local residential scene turned it upside down with its insistence on big-company H&S and compliance standards, and its assigning work to only those contractors and subcontractors who had passed through its induction process. Even in things like traffic management, small companies are struggling to get employees formally qualified to put out traffic cones, just so they’re entitled to tick the appropriate boxes on the paperwork. “Everything is bits of paper today, and if you don’t pull your bits of paper out you don’t get started,” Robertson says. But while painters and decorators might be abandoning Christchurch for the fairer fields of Auckland residential construction, they’re not flooding car yards with secondhand exleased utes at Christchurch Airport as one rumour has it. David Crawford, chief executive of the Motor Industry Association of New Zealand, was quite upbeat when contacted by Contractor. Sales figures of light commercials are still “staggering” 44 www.contractormag.co.nz
nationwide, having gone up 25 percent in 2013, 19 percent in 2014, and 14 percent in the year to date. Crawford says luxury vehicle sales, the lead indicator of demand changes for new vehicles – which forewarned of the 2008 Global Financial Crisis by slumping 12 months before it, and afterwards began to recover about 10 months before the rest of the market – were still going strong, up “very slightly” this year compared to last. And Dion Jones, general manager of Turners Auctions, the country’s biggest motor vehicle auction house, said repossessions and arrears in the light commercial sector were “as low as they’ve ever been”. This was despite companies “discounting the pants” off new vehicles to encourage buyers to ante up the extra couple of thousand dollars for a new vehicle rather than a used one. So the shape of the Christchurch rebuild may be changing, and there may be challenges for small companies to adapt to the paperwork requirements of H&S and other forms of compliance, but the volume of work remains high. Brian Warren, chief executive of Christchurch’s Isaac Construction, summed it up by saying there may have been a drop-off in demand, “but it’s not as if it’s come to the top of a steep curve and dropped off the other side in a steep curve either. “That said, we certainly noticed a drop-off at the beginning of this calendar year. It’s come back a little bit now, but certainly it’s less than it was 12 months ago.” That most telling barometer of economic activity, employment, bears Warren’s assessment out: Canterbury added 11,900 new jobs in the latest March year, though this was down from a peak of 34,000 added in the year to the end of last September, with most of those increases coming in the construction and food services industries.
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CONTRACTOR RECRUITING
New Zealand calling After years of losing our best workers to Australia with its great weather, high wages and promises of a better lifestyle, the golden dream is over and disillusioned Kiwis and out-of-work Australians are heading this way. MARY SEARLE BELL explains. FOR YEARS AND YEARS New Zealand has sat in the shadow of that lucky country next door. And it cast a big shadow at times. During the boom years, nowhere boomed louder or bigger than Australia with its oil, gas, iron ore and gold. Mining was huge, and along with the soaring demand for commodities came a huge tax revenue which saw the government increase spending on all sort of projects for the public. We Kiwis looked across the ditch at the seeming abundance of wealth and the opportunity to get a share of it proved too tempting for many. Everyone had a cousin or a neighbour or a colleague or five who moved to Australia to take advantage of the jobs with big paycheques that were on offer. And no market had more opportunities or more cash than the mining and construction sectors. Aussie companies targeted their New Zealand counterparts, stealing their best staff, their second-best staff and almost anyone who was willing to move across the Tasman. Then the markets crashed and things went a bit wobbly around the world. But not in Australia. It continued to thrive. However, finally the balance is shifting and the Australia’s lucky glow has started to dim. Commodity prices are plummeting. The demand for resources is waning and, as a result, the tax revenue is dropping and government spending is being stopped left, right and centre. The two states hit particularly hard are the resource rich Western Australia and Queensland. In Pilbara, Western Australia’s honey pot of mines, redundancies are coming thick and fast, with hundreds of jobs being slashed across the industry in the past few months. In an ABC news article, Mayor of Karratha Peter Long said he had noticed a sombre mood among residents. He said it was no longer just construction workers being made redundant as projects move into the production phase, which had been expected, but operations staff as well… “People that have been here a long time have to leave town, I think they’ve been given two months and they’ve got to uproot themselves, take their children out of school and go somewhere else looking for a job. “People are depressed, it’s really tough.” The problem is, the rest of Australia is suffering from the same problems. It is estimated there are over 1000 engineers out of work in Australia right now. For the many Kiwis who moved across the ditch chasing the Aussie dollar, not only is there no job for them but, for those who moved there after 2001, there is no government assistance either. There’s only one place to turn, and that’s back home. What’s more, for many Australians, New Zealand is starting to 46 www.contractormag.co.nz
look more and more appealing. In fact, 2014 saw more Aussies immigrating here than in any of the previous 36 years. Kiwi emigration to Australia is down significantly too. In the year to January 2015 there was a net loss of just under 3000 to Australia, compared to 17,000 in the 12 months to January 2014, and 37,900 the 12 months before that. Things are certainly looking rosier over here, and although Australians haven’t traditionally considered New Zealand when looking for employment opportunities, this mindset is changing. Helping them across the ditch is international recruitment firm Working In. Their expertise is in finding skilled people around the world for organisations who can’t find the necessary talent locally. What better then than to hire a New Zealander who’s keen to move home, or an Australian eager to start a new life in the Land of the Long White Cloud. In a co-venture with the Ministry of Business Innovation and Employment (MBIE), Working In held job expos across Australia earlier in the year. Among the more than 100 companies exhibiting were infrastructure heavyweights Leighton Contractors, Fletchers and Vector, along with their smaller contemporaries including Wharehine Group and Clarksons Electrical Contracting. Working In director Scott Mathieson says the first expo, held in Perth, aroused the curiosity of the press as well as the public, both intrigued that the Kiwis were looking there to get people. That Perth show attracted more than 1700 visitors as well as national TV and talkback radio. After Perth came expos in Brisbane, Sydney and Melbourne. Each show was pitched differently in different parts of the country, with an emphasis on trades in Perth, IT in Sydney and hospitality in Melbourne. Scott says the shows were so successful they’re doing it all again in July. Late last year, employment minister Steven Joyce told an Australian breakfast show that New Zealand is looking for 50,000 new skilled workers in the next two years, saying we have “big shortages” in areas such as IT, software design, engineering and construction. One of Joyce’s election promises was to help create jobs, and so, employers are paying just $4950 of the $14,950 expo fee, with the government pitching in the remaining $10,000. This certainly makes participating in one of the shows an easy choice, especially for the smaller companies. And it is paying off for them too. Scott says Clarksons Electrical Contracting picked up five Kiwis in Perth to add to its workforce here. General manager David Clarkson says advertising in New
Zealand wasn’t giving him the steady stream of new employees that he was after. Clarkson’s has offices throughout the country and with all that’s happening in Auckland and Christchurch, a reliable supply of qualified staff is necessary. David started looking to recruit from the UK when he discovered the Perth event and since it was closer, signed up. The government subsidy was also appealing. David says that, even with the cost of flights and accommodation, the expense was about the same as recruitment fees for hiring two or three people. And for his money he came home with six – one South African as well as those five homesick Kiwis. “I’m still talking to a few people I met at the expo who are thinking about moving here, so there’s a few more in the pipeline. And that’s the steady stream of people I was talking about.” For the new employees, one of the appeals of Clarkson’s is that it will place its new hires in their location of choice. “A lot of the people we talked to had been in Australia for around five years and had earned a bit of money and now wanted to be near family. One guy we hired had family in Tauranga and that’s where he wanted to live. We can accommodate pretty much where they want.” It’s that feeling of homesickness amongst the New Zealanders in Australia that David noticed. “We had so many people come up to us who just wanted to chat to another Kiwi.” David is very pleased with his latest recruits: “They’ve all had very good training and have high health and safety and compliance standards too. Wharehine Group teamed up with a group of companies
from Auckland including Ateed (Auckland Tourism Events and Economic Development) and Allied Workforce to participate in the expo. Wharehine managing director Rob Gibson was impressed with the number of people who attended the event. He also commented how they all looked like they’d had enough. “They were ready to come home,” he says. “Especially those with families. They didn’t ask about the money, they just wanted to come home.” Rob says they were after the Kiwis first. “It was a good chance to pull some guys back. We lost about five or six people, probably more, to Australia over the years.” “We took a hammering six to seven years ago, along with everybody else, and we’ve had to work hard. But we’ve got some good projects now and good customers. Wharehine’s recruitment is to fill natural growth in the company. From the expo they hired a Kiwi to their quarry operation and a Spanish engineer who hadn’t been enjoying the lifestyle in Perth. According to Rob, three months on, he’s very happy to call himself a Kiwi. They’ve also employed a couple of extra returning New Zealanders. “We’re seeing consistent enquiries now from people who’ve been working in Australia,” he says. It appears the golden dream of life in Australia has turned into a nightmare for many Kiwis and they are simply packing up and coming home. And it seems that more than a few Aussies are coming with them.
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JUNE 2015 47
CONTRACTOR HERITAGE TRAILS
HE
RI TAGE
TRAILS
The Pigroot
PHOTO: HOCKEN LIBRARY
There were wild pigs aplenty up the top of the Shag Valley, but it was the mud that gave Otago’s SH85 the nickname by which it is known today: The Pigroot. HUGH DE LACY REPORTS.
48 www.contractormag.co.nz
A COUPLE OF OLD MATES, an American and an Irishman, walked into a bank in Dunedin in August 1862, slapped an 87-pound (39.5kg) bag on the counter, and said it was gold they’d panned from the Clutha River. So it was, and had someone produced such a hoard in this day and age it would be worth well over US$1.5 million, even at the current middling global price of around US$1200/ounce (NZ$1600/oz). The American was the grandly named Horatio Hartley and his mate was the Dublin-born – perhaps Trinity Collegeeducated – Christopher Reilly, and they were veterans of the California and Victorian rushes alerted to Otago’s possibilities by Gabriel Read’s discovery of gold in the Tuapeka River in May of the previous year. Read went on to become synonymous with the Otago gold boom of the 1860s, while Hartley and Reilly faded into a lesser role in the region’s history. But what their discovery led to was a new 220 kilometre road into the Otago goldfields. It was one of three such routes, and it headed west up the Shag Valley from Palmerston, over The Pigroot pass onto the Maniototo Plain, then cutting across the plain and down the Manuherikia Valley to Alexandra. As such it more or less replaced the trail to Tuapeka blazed by Read up the Clutha River, and a third that had taken a supposedly easier route up the Taieri Valley and over the Rock and Pillar Range. Quickly tiring of Gabriel’s Gully after reaching it by way of the Old Dunstan Road up the Taieri, Hartley and Reilly headed north looking for a new goldfield that might win them the $4000 government reward for a new field to rival Read’s. Not only did that winter intensify the freezing misery of the miners desperately trying to rush Gabriel’s Gully by way of Middlemarch and the Old Dunstan Road, but the ice build-up in the Southern Alps greatly lowered the level of the Clutha River, temporarily exposing the beach on which Hartley and Reilly were to pan their bonanza. The site of their discovery, just south of Cromwell and the junction of the Clutha and Kawerau Rivers, is today marked by a memorial. Hartley and Reilly returned to civilisation by way of the Shag Valley trail which had originally been blazed in 1855 by three sheep farmers, Peter Napier, Walter Pearson and James Saunders. Two years later two other would-be farmers, brothers William and James Murison, pushed a bullock track through to the Maniototo Plain with funding from Waikouaiti whaler, farmer and merchant Johnny Jones, and the physical help of Jones’ own bullock-driver A Petrie and employee Sam Ogilvie. The Murisons stayed on to pioneer sheep farming on the plain, and in that year the first regular horse-borne mail started to get through The Pigroot. The land along the way was already being taken up by sheep-runs, and the high, cold, treeless “Plain of Blood”, as the Maori called the Maniototo after an ancient battle there with northern invaders, was becoming a farming destination in its own right. Initially Hartley and Reilly’s claim on the government reward was turned down because the government had shifted the goalposts: it now required the new field to yield JUNE 2015 49
PHOTO: OTAGO EARLY SETTLERS MUSEUM
CONTRACTOR HERITAGE TRAILS
The stage coach stop on the old Pigroot.
16,000 ounces of gold in three months before the prize would be paid out. In fact, no less than 70,000 ounces was carted out to Dunedin over the last four months of that year by the gold escort alone, with individual miners bringing thousands more out on their backs. After Hartley and Reilly’s discovery, the track became the main supply route to the Otago diggings, with the pass at the head of the Shag Valley quickly earning the name The Pigroot, because the bullock-drawn supply wagons churned up the countryside so much that it looked like wild pigs had been rooting it up. The name stuck like mud to the entire road, even though the Palmerston-based Waihemo County Council grumbled for the next 75 years that it sounded ugly, and would have preferred it be called Ohinemaru, the Maori name for the main saddle. Within a year of Hartley and Reilly’s discovery the goldfields population reached 24,000, but it took weeks for wagon trains to reach the goldfields by way of The Pigroot, with the journey made harder by the absence of timber for cooking on the tussock-covered hills. Instead, for heating the wagoneers had to resort to burning dried ox-dung, called buffalo chips, and flax flower heads that they called kaladdies. In the wake of the alluvial goldminers came the quartz miners with their vast inventories of ever-heavier drilling and extraction machinery, but the road continued to be a quagmire in places because the mud was so deep it took endless applications of metal to stabilise. In wet weather the wagoneers sometimes had to hook up two or three teams of 10 or a dozen bullocks each – double-banking or treble-banking they called it – to get a single wagon and its four-tonne load over the pass. The strain on draught animals was reflected in the names given to the most difficult parts of the route: The Black Pinch for the first hill up the Shag Valley, and Dead Horse Pinch a little further along where more than one animal had expired in the effort to traverse it, and its carcase heaved over the nearest bank. After Waihemo County was formed in 1883, efforts to improve the road by metalling redoubled, making things easier not only for the wagoneers, but for Cobb and Co which ran a twice-weekly 50 www.contractormag.co.nz
service out of Palmerston and Ranfurly, meeting and exchanging passengers at The Pigroot Hotel. The county employed about 10 fulltime surfacemen, as they were called, working to keep the roads open, for which they used stone-breaking hammers called knappers and spallers, as well as wheelbarrows and shovels, and by 1890 they were being paid 60 cents an hour for it. With the county too came better regulation of the traffic itself, heavy bullock wagons being required to have steel tyres at least six inches (10cm) wide to minimise rutting and pugging. By 1885 nearly the whole of the road had been metalled, though the stretch from the Shag River to The Pigroot Hotel was still causing problems, and most of the multiple crossings of the Shag River – seven in the approaches to the Waihemo Hotel alone, for example – had been bridged. After the gold rushes ended, traffic along The Pigroot settled down to a steady traffic of supplies going up to the inland townships and sheep-runs, and gold from the quartz mines, grain and livestock coming back down. The road continued to be steadily improved, and during the Great Depression of the early 1930s, there was an unemployed men’s camp at The Pigroot that provided labour for the road and for local runholders. Waihemo County’s patronage of the eastern parts of The Pigroot came to an end in 1948 when the road was proclaimed a state highway and transferred to the Main Highways Board, replaced in 1954 by the National Roads Board. The economic expansion that followed World War Two, and reached its peak in the 1952 Korean War wool boom, saw a flood of road-upgrade funds applied to The Pigroot, as well as to the wider state roading network. Today the road that once sucked in wagons to their axles is a handsome sealed highway, still carrying out the gold from the likes of Oceana Gold’s Macraes mines a wee way down SH87 from the junction at Kyeburn, and the few mines still operating in inland Otago. But where Hartley and Reilly first staggered along under their huge load of yellow metal, now tourists cruise through to the winter playgrounds of Alexandra and Queenstown, and fruit, wool and livestock pour out through Palmerston to the export markets of the world.
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CONTRACTOR TECHNOLOGY
When the surveying When State Highway 1 bypassed Pokeno just south of the Bombay Hills, many believed that would be the end of the little town.
52 www.contractormag.co.nz
INSTEAD, A JOINT VENTURE between Dines Group and Fulton Hogan is developing 200 hectares in a mixed use residential and employment complex, anchored by the $220 million Yashili Dairy Plant (Yashili is one of the big three infant milk formula producers for the Chinese market). The dairy plant within Pokeno’s Gateway Business Park alone, producing 52,000 tonnes of infant formula a year, will provide for around 150 people. The site includes a range of process buildings, offices, warehouses, services and a 41 metre-tall drier, covering a total of 30,000 square metres of their 67,100 square metre site. The DFH Business Park is made up of a further 272,000 square metres of industrial zoned land. Overall, the Pokeno Village Estate offers a planned alternative to intensification in the greater Auckland region claims Jason Ware, survey manager at Dines. Situated roughly halfway between Hamilton and Auckland’s CBD, the village
complex will eventually service 2000 homes and create about 1500 permanent jobs across a range of industries. Some 500 residential lots had already been sold by the beginning of last month, with seven kilometres of pipework, 3.5 kilometres of roading and 700,000 cubic metres of earthworks completed, just this season. It’s expected to be another 10 years before the development is completed. Dines’ contracts stretch from Millwater at Silverdale in the north to Pokeno in the south – up to 100 kilometres away, and Jason Ware and his survey team are responsible for all survey and quality control work. The company has a reputation for thinking outside the square to deliver slick, wellcoordinated and high quality developments across a wide range of topography. “Every design is checked and/or adjusted for accuracy before the first sod is turned,” says Jason. Modern developments rely heavily on
begins modern surveying equipment, of course, and Dines’ projects are no exception. While the company operates one brand of equipment (Leica) across all operations, they have a mix of old and new equipment that interfaces seamlessly. This covers survey equipment, drainage lasers, rotating lasers and machine control systems. “Everything from old 1200 rovers and bases through to the latest Viva and iCon, GPS and total stations.” Dines has purchased its own dedicated GPS radio frequency that allows it to increase the radio output from two watts to four. “This has not only eliminated any interference, but gives us coverage over the entire Pokeno project, even in the deepest gullies,” Jason explains. It’s already been shown to be very cost effective, with no down time while others share the frequency, he adds. There is a permanent solar base station there operating 24/7, developed from an
old 1200 back-pack rover system, with three solar panels providing energy that’s stored in deep cell batteries. This provides a run time of up to two weeks if no sunlight is available, according to Jason. It also means all survey crews and machines are working off the same plane without a surveyor or base station needing to be on site. This of course frees up their equipment for other projects. Dines currently has two Leica 3D excavator machine control systems in use, with a third on its way. Among their obvious use these are used as set-out tools when surveyors are busy elsewhere, delivering immediate productivity gains to the equipment they’re fitted to and helping keep other machines that work with them more productive as well. “One key to the success of our new systems is having the right operators,” says Jason. “By having our top guys on the machine controlled equipment, we have another level of QA in the field. Nine times out of 10
“By having our top guys on the machine controlled equipment, we have another level of QA in the field. Nine times out of 10 when they call me up to query a design, it’s the design that’s wrong not the machine.”
JUNE 2015 53
CONTRACTOR TECHNOLOGY
There is a permanent solar base station there operating 24/7, developed from an old 1200 back-pack rover system, with three solar panels providing energy that’s stored in deep cell batteries.
54 www.contractormag.co.nz
when they call me up to query a design, it’s the design that’s wrong not the machine.” Dines is constantly finding unexpected new applications for the machines, says Jason. “The machines have allowed us to speed up multiple operations, as well as doing away with labourers measuring road cut outs etc. In addition, we’re able to complete tasks more accurately than ever before. Accuracy and efficiency are core values of the company.” As survey manager, he finds the telematics module invaluable. “This allows me to access machines anywhere at any time, to upload or download data to them. I can take
over the screen and show operators what to do, or change settings, without having to be there.” A case in point recently was when an operator at Pokeno called him while Jason was driving through Mt Albert in central Auckland. “I pulled over, set up my laptop in the wagon, accessed his machine and got him sorted in 10 minutes, then I was back on the road and he was back working. In the past, this might have cost me a couple of hours’ travelling time for a round trip to Pokeno and back for a 10 minute fix, before I could resume travelling to the other site.” • Customer supplied copy.
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CONTRACTOR ROADING
Early maintenance and operations model results Nearly halfway through the roll-out of the NZ Transport Agency’s network outcomes contracts (NOCs), early indications are that the new maintenance and operations approach is producing the outcomes sought. Report by NICLAS JOHANSSON, NZTA. TAURANGA HIGHWAY MANAGER Niclas Johansson has responsibility for high-level liaison with industry and oversight of the effectiveness of the model. He is the champion and sponsor of the industry advisory group, a group comprising Transport Agency staff and a broad range of contracting and consulting representatives. Niclas says the major reshape of the state highway maintenance and operations operating environment has seen a good level of overall competition in the roading industry. Nine contracts have been rolled out since 1 July 2103, with a good level of interest by a range of the suppliers. There are also a large number of small and medium local providers being engaged by suppliers. An industry advisory group was originally established to help shape the new maintenance and operations model. Niclas says the group has subsequently helped to provide oversight throughout the roll-out of the new contracts. It has also acted as a group to challenge new concepts working to identify opportunities to maximise network efficiencies and effectiveness. With a number of contracts now actively underway, the industry advisory group’s focus is moving from process to delivery, and how best the Transport Agency and the industry as a whole can realise the gains that can be made under the new maintenance and operations model. Value for money and healthy markets continue to be key focus areas, as well as potential improvements to the procurement process to help generate the best outcomes from the model. “We’re committed to keeping industry informed and engaged, so we are continuing with the regular industry advisory group meetings to help ensure everyone is kept up to date with any process improvements,” Niclas says. Constrained maintenance budgets and the resulting Road Maintenance Taskforce and Road Efficiency Group, were the major impetus for development of the NOC approach.
Other underlying principles were the desire for increased collaboration across the sector, and for the Transport Agency to take increased ownership of its state highway asset. After over two years of liaison and consultation with the wider transport sector, the Transport Agency agreed the NOC approach; an approach that meant relatively significant change for the sector and some reorganisation of the Transport Agency’s Highways and Network Operations Group, resulting in new roles focused specifically on the network, contract management and customer journeys. Niclas says these changes have resulted in the Transport Agency now being better informed about the condition of New Zealand’s state highway asset, enabling better quality decisions relating to the asset. “Through taking a more hands-on approach to managing our state highway asset, we are now better attuned to the realities of managing the asset, and the impacts of any decisions we make on the condition of the asset,” Niclas says. “The basis of good decision making is benchmarking, which in turn requires good data. It’s important we get good data in from our suppliers, as this data will drive decision making for the future. “The information we get now is tied into forecasting, and what is included for maintenance and operations in the State Highway Activity Management Plan in future years.” Niclas’ role is also to act as an impartial and confidential point of contact for industry to allow a free and open dialogue about the NOC approach. Importantly, his role sits outside the contractual relationships of any NOCs currently operational. He has been involved in the Road Maintenance Taskforce and Road Efficiency Group, so will be known to many. He is interested in hearing from industry if there are any issues, comments or feedback on the NOC model, and can be contacted via noc@nzta.govt.nz.
Improved information indicates contractors keen Contractors on network outcomes contracts (NOCs) are showing a strong impetus to start well and get it right, says Transport Agency performance manager Liane Powell. “We are seeing improved information from the NOC areas as they roll out, compared with non-NOC areas. Most contracts are delivering to the timeframes from the initial contract start date which shows contractors are starting well, and are keen to get it right,” she says. “This is great to see, as accurate information helps us make the right decisions in the future, particularly when it comes to where and what we invest in.” Currently, there are seven awarded contracts where the
56 www.contractormag.co.nz
operational performance measure and key result area measurement process is applicable. For each contract, there are a significant number of measures to collate, review and validate in the form of operational performance measures (OPMs) and key result areas (KRAs) and key performance indicators (KPIs). The intent is to develop the reports similar to those we produced to show data quality in the RAMM database. Powell says work is underway on a performance tool that will assist in the collection and collation of measures, and assist in comparison reporting across NOC areas. This tool will make what is currently a fairly labour-intensive process less cumbersome and unwieldy.
CONTRACTOR LEGAL COMMENT
Fitness for purpose in construction contracts TYLER BUCKLEY, SOLICITOR, SHERWYN WILLIAMS, CONSULTANT, KENSINGTON SWAN NATIONAL CONSTRUCTION TEAM FITNESS FOR PURPOSE, in the construction context, is a concept regarded with enthusiasm by some, with apprehension by others, and with a blank gaze by a great many. Those who gaze blankly do so because they have no real idea what the concept involves. They’re not helped by the fact that sometimes fitness for purpose is argued even though there is no fitness for purpose clause in the contract. Sometimes, even when there is such a clause, it’s not well drafted. Some Australian and many international standard contracts contain fitness for purpose clauses. Of necessity, however, they are always generally worded and need to be expanded upon in the specification or special conditions. In New Zealand, the standard design and construct contract NZS 3916:2013 requires the contract works to meet the purpose and performance requirements of the contract, and the standard housing contract NZS 3902:2004 contains a fitness for purpose clause that reflects the statutory warranties in contracts for the building of household units referred to below. Fitness for purpose clauses are also frequently encountered in special conditions and in bespoke contracts. Furthermore, although a contract may not say anything about fitness for purpose, an obligation to ensure fitness for purpose may be implied.
What do the words mean? ‘Fitness’ is synonymous with suitability, and indeed the two words are frequently used interchangeably in the construction context. The ‘purpose’ is the function which the works are intended to serve. Hence, an obligation to ensure that the works will be fit for purpose is an obligation to ensure that they will be suitable for their intended function. What is the practical effect of a fitness for purpose obligation? The practical effect is that the contractor will be liable for damages for breach of contract if the works are not suitable for their intended function. This is so whether or not the contractor was negligent, and is also likely to be so even where the contractor complied with the specification. The latter situation is demonstrated by a recent UK case concerning a contract for the design, fabrication, and installation of foundations for wind turbine generators. The specification required the contractor to design the foundation structures in accordance with a design prescribed in a particular international standard. But the contractor was also required to warrant that the works would be fit for purpose. The contract provided that the purpose was to be determined from the Employer’s Requirements, which stated that the foundation structures were to have a minimum service life of 20 years. This was not thought to present a problem, because the standard itself said that it provided for a minimum service life of 20 years. The contractor designed and constructed the foundation 58 www.contractormag.co.nz
structures in accordance with the standard. However, unbeknown to both parties, the standard contained an error. The effect of the error was that the foundation structures, although designed in accordance with the standard, would not in fact have a service life of 20 years. The Court held that the warranty as to fitness for purpose ‘trumped’ the obligation to comply with the specification, and the contractor was liable.
When does a fitness for purpose obligation arise? A fitness for purpose obligation may arise in one of three ways. The first is where the obligation is an express term of the contract. In such a case, the contractor will expressly warrant that the completed works, or possibly some element of the works, will be fit for their intended purpose. Express warranties are common in design and construct contracts, although they are not exclusive to those contracts. The second way is by implication. This can happen where, at the time of entering into the contract, the contractor is aware of the purpose for which the works are to be used and the circumstances show that the employer is relying on the contractor’s skill and judgement to achieve that purpose. It follows that any element of design by the contractor, from a design/build contract to the selection of materials, will usually give rise to an obligation to ensure fitness for purpose in respect of that design, even if the obligation is not stated in the contract. Again, however, the situations in which such an implied obligation may arise are not limited to those where the contractor is responsible for design. They may extend, for example, to the installation of specialised materials or components designed by others. To imply an obligation to ensure fitness for purpose, the contractor must be aware of the purpose for which the works are to be used and the circumstances must show that the employer is relying on the contractor’s skill and judgement to achieve that purpose. So, for example, a contractor who simply undertakes to build something that the employer has designed, and who builds it in accordance with that design, may not be liable if what is built turns out not to be fit for the purpose intended by the employer. Similarly, there will be no implied warranty in respect of materials where the employer selects the materials without the contractor having any say in the matter. The third way in which an obligation to ensure fitness for purpose may arise is by statute. In New Zealand, the Building Act implies warranties of fitness for purpose into contracts for the building of ‘household units’. First, all materials used in the building must be suitable for their purpose. Secondly, if the particular purpose for which the building work is required, or the result that the owner wishes the building work to achieve, are apparent from the contract, so as to show that the owner relies on the skill and judgement of the builder, the building work and materials must be reasonably fit for that purpose.
How do you identify the purpose? To give effect to a fitness for purpose clause, it is necessary to identify the intended purpose or function of the works. Ideally that purpose or function should be expressly stated in the contract. And it should be capable of objective measurement, for example by reference to some design criterion or performance outcome, or by reference to some standard or regulation. If the purpose or function is not expressly stated in the contract, it needs to be inferred from all the contract documents and, in some cases, from the surrounding circumstances. For example, where the intended use of the works is one which ordinarily requires compliance with certain standards or regulations, the purpose will extend to compliance with those standards or regulations. On the other hand, if the intended use has some unusual characteristics that the contractor is not aware of, the ‘purpose’ will be limited to the purpose to which similar works are usually put.
What level of fitness is sufficient? For a fitness for purpose clause to have the most impact, it needs to be precise as to the level of fitness or suitability required. A warranty which is stated in clear terms, and which imposes an absolute obligation on the contractor to ensure that the works will be fit for purpose in any circumstances, will provide maximum protection for an employer. The warranty will have to be read in conjunction with the other provisions of the contract, but is likely to be all-embracing, except perhaps where the works are unfit for purpose due solely to some act or omission of the employer. On the other hand, a warranty that is expressed only in
general terms (as many of them are) will likely be interpreted as a warranty only that the works will be reasonably fit for their intended purpose. An old but often-cited Australian case provides an example. A steel door which was required to be fit for the purpose of preventing break-ins was found to be fit for its intended purpose notwithstanding that it failed to prevent a particular break-in, because it was reasonably sufficient to prevent break-ins in general.
Should an employer seek a fitness for purpose warranty? From the point of view of an employer, a fitness for purpose warranty is very useful. If the work turns out not to be suitable for its intended function, the employer can simply rely on the warranty. Without a warranty, the employer would have to prove that the contractor had failed to comply with the specification, or had failed to exercise reasonable skill or care. The downside for the employer is of course that the contractor is being asked to assume more risk, and one would expect that to be reflected in a higher price for the work. Bear in mind too that the contractor will not usually be able to insure against a breach of an obligation to ensure fitness for purpose, which is a contractual obligation.
Duty to warn Notwithstanding that in any particular case there may be no warranty as to fitness for purpose, the contractor may nevertheless be liable if it was aware, or ought to have been aware, of a deficiency in the employer’s design or choice of materials and failed to point out that deficiency to the employer. That would be a breach of the contractor’s implied obligation to warn, which is another story altogether.
JUNE 2015 59
CONTRACTOR COMMENT
Profit and health and safety MALCOLM ABERNETHY, EXECUTIVE OFFICER, CIVIL CONTRACTORS NZ
THIS MONTH I AM writing this column in two sections that are loosely linked. It is my view that contractors need to cover the costs of doing business, recover some return on investment and on the way make a reasonable profit. We currently hear anecdotal reports that rates are low with very small margins being returned. There is no allowance made for when something goes wrong or when difficulties that cannot be recovered through variations or extensions of time are encountered. The cost of doing business seems to become greater – it is the issue that never seems to go away – the cost of compliance. Contractors continually work at developing management systems that fit their business. Management systems that are unique and contribute to making their business professional and where they can add value to their clients’ projects based on their knowledge and skill. Contractors that invest in their business processes have technical and management skills and support their employees with training that ensures they have the competency to carry out the work.
It is essential that both clients and contractors acknowledge that low pricing is not always the best price and that where a low price is accepted then both quality and time may also be compromised. The cost of developing and maintaining management systems are considerable and some would say will be even greater in future once the health and safety reforms become law. The management systems are required to both meet and demonstrate that the company is satisfying all its compliance requirements. Once the health and safety reform becomes law these ‘good’ contractors may not experience much change as they may already be doing more than meeting their compliance requirements. Contractors confirm the adequacy of their management systems and processes by having annual independent third party audits for quality, environment and health and safety all of which have significant cost and take time. For most contractors the benefits are obvious as they are sought out to undertake further work in the future relying on their track record supported by the competency of their entire organisation.
These contractors should also experience less rework or breaches of compliance requirements around environmental activities and health and safety. ‘Good’ companies actively train their employees to ensure they have the competency to carry out the work. However there is a significant cost in developing and maintaining management systems and ensuring employee competency and again the ‘good’ contractors will add those costs into their pricing structures. We are in a phase of having reasonable amounts of work available (patchy in some parts of the country) yet contractors still need to compete for the projects which tends to drive the price down. One issue associated with this is that some clients may well accept a low price fully realising that the contractor does not have adequate compliance and management systems in place. Or alternatively the contractor does not include the compliance costs in the pricing structure. The result is that rates are low continually being driven down leading to the potential of unsustainable tenders where the true cost of construction and managing the business is not covered. Margins are also reportedly low adding to the difficulty of getting a return on the considerable investment in often specialist resources. It is essential that both clients and contractors acknowledge that low pricing is not always the best price and that where a low price is accepted then both quality and time may also be compromised. The second issue is health and safety reform, which requires a change of the emphasis from simply identifying and managing hazards to one of identifying and managing risk. Risk based approach where the risk of a particular occurrence is identified and its probability determined. To manage those risks we should adopt the internationally recognised hierarchy of controls which includes eliminate, isolate, engineering controls which is effectively minimising, administration – processes for managing health and safety and finally Personal Protective Equipment (PPE). PPE is the last line of defence however the use of PPE should also be subject to a risk assessment to determine its effectiveness. In 2012 NZTA made the use of long sleeves and long trousers mandatory for work on the State Highway network following on from the introduction of ‘long longs’ by SCIRT for the Canterbury rebuild teams.
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The concept of ‘long longs’ initially met considerable resistance and is still not universally accepted by some. When ‘long longs’ were introduced they were to be, ‘Suitable for operation, cognisance taken of any extreme hot / cold environments. Flame proof overalls to be worn as appropriate.’ The risks that ‘long longs’ would partially or wholly mitigate included, ‘Some physical injuries, cuts and scrapes. Minimisation of health risks from excessive sun exposure.’ There are of course down sides to the use of ‘long longs’ particularly with heat exhaustion, hydration and reduced vitamin D intake (allegedly). It is well recognised that long term exposure from excessive sun exposure is a serious issue that the use of ‘long longs’ can reduce. In addition contractors that work in tropical environments have found that the use of ‘long longs’ can reduce the incident of minor cuts and scratches with an ongoing reduction in infection. Since the introduction of the ‘long longs’ policy the suppliers of PPE have stepped up by having clothing that not only provides the protection required but also prevents the transfer of heat through the clothing to the wearer. There is a cost in supplying PPE that needs to be included in the contractor’s pricing structure.
JUNE 2015 61
CONTRACTOR COMMENT
Strong standards ROB GAIMSTER, CEMENT & CONCRETE ASSOCIATION AND NZ READY MIXED CONCRETE ASSOCIATION
The effective functioning of the concrete industry and wider construction sector is based to a huge degree on robust New Zealand Standards. These are developed through industry accord to create documents that instruct best practice, describe performance boundaries and offer compliance guidance through the construction regulatory framework. Although the monitoring of Standards for currency is an ongoing undertaking, the concrete industry is busier than usual at the moment, updating a range of important documents across both Industry Standards and New Zealand Standards.
Industry standards There are a number of industry best practice documents which by being referenced in the New Zealand Building Code (NZBC) become Industry Standards. For instance, the recently revised CCANZ publication Code of Practice for Weathertight Concrete and Concrete Masonry Construction (CP 01:2014) is cited as Acceptable Solution 3 of the NZBC Clause E2 External Moisture. Similarly, the NZBC cited CCANZ Technical Report 3 Alkali Silica Reaction: Minimising the Risk of Damage to Concrete – Guidance Notes and Recommended Practice is being considered for review.
NZ cement standard New Zealand’s cement Standard, NZS 3122 Specification for Portland and Blended Cements (General and Special Purpose) was amended in December 2014. The amendments reinforce the requirements for cement through (i) a provision to restrict the total alkali content and (ii) new requirements for sampling and testing. In terms of controlling the total alkali content NZS 3122 includes a requirement expressed as sodium (Na2O) equivalent for type GP (General Purpose) and HE (High Early strength) cement. Aggregates susceptible to the potentially deleterious effects of Alkali Silica Reaction (ASR) exist in certain parts of New Zealand. Provisions for minimising the risk of ASR are given in the CCANZ publication TR3, one of which is limiting the maximum total concrete alkali content when potentially reactive aggregates are used. NZS 3122 now sets a limit of 0.6% or less. Interestingly, where there is specific prior agreement and notification of the purchaser or cement user, the cement manufacturer or supplier may supply cement which exceeds this maximum alkali limit. It should be remembered that where aggregates which are deemed to be non-reactive are used, no precautions are necessary in terms of ASR. Sampling and testing frequencies are now in NZS 3122. There were no provisions in the previous version, although it should be stressed that the two cement companies, Golden Bay Cement and Holcim (NZ), which have historically supplied the 62 www.contractormag.co.nz
lion’s share of New Zealand cement, have always tested and reported routinely. Furthermore, it is a new requirement that all cement sampling be undertaken at the point of entry prior to distribution. This ensures complete traceability between the cement consignment and its certification. It is also a requirement that any cement supplied out of sample date shall be subject to re-sample and re-test by the supplier. NZS 3122 now also gives minimum sampling and testing frequencies for ‘proven’ and ‘unproven’ sources. A source is proven where there is at least six months of data obtained in accordance with NZS 3122. All testing has to be undertaken by a laboratory independently accredited by a member of the International Laboratory Accreditation Cooperation. As in previous versions of NZS 3122, cement properties are classified as ‘specified’ or ‘reportable’. Of the eight reportable properties, the supplier will report test results as nominated by the purchaser or user. The supplier does not have to provide the reportable properties unless requested.
Other NZ concrete standards Another important Standard under review is NZS 3121 Specification for Water and Aggregate for Concrete, which gives essential requirements for water and aggregates, other than lightweight aggregates, suitable for use as materials for making concrete to meet normal structural and durability requirements. NZS 3101 Concrete Structures Standard is also under review. Part One, The Design of Concrete Structures, specifies minimum requirements for the design of reinforced and pre-stressed concrete structures. Part Two, Commentary on The Design of Concrete Structures, explains the provisions of Part One, summarises technical background and suggests approaches which satisfy the intent of the Standard. Progressing alongside NZS 3101 is the review of NZS 1170.5 Structural Design Actions – Part 5: Earthquake Actions – New Zealand, which provides procedures for the determination of earthquake actions on structures in New Zealand. It gives the requirements for verification procedures, site hazard determination, the evaluation of structural characteristics, structural analysis for earthquake action effects, the determination and limits for deformations and the seismic design of parts of structures.
Future standards model Standards development is currently undergoing change in New Zealand, with the Ministry of Business, Innovation and Employment’s (MBIE) Standards & Conformance Review and subsequent Standards Bill driving through a number of governance, administration and funding modifications. Regardless of the eventual model, Standards will remain a vitally important tool in ensuring quality construction, one which the wider concrete industry remains firmly committed to.
COMMENT CONTRACTOR
Lifting and rigging – a Health & Safety perspective ROD AUTON, CHIEF EXECUTIVE, CRANE ASSOCIATION OF NEW ZEALAND.
IN THE PAST little thought was given to a design of an engineered piece of equipment that, at some time in the future, might have to be lifted. A typical example is an air-conditioned unit that is potentially fragile and must be handled in the right manner so that damage doesn’t occur. In today’s construction environment, many commercial air conditioners are installed on a roof or in an out of the way place that requires them to be lifted into place. Many have not been designed to be lifted into the position where they will be installed. Under the new Health and Safety Regulations soon to be released there are new elements that will need to be considered when an item is to be lifted during its lifespan. The proposed regulations introduce a different Hierarchy of Control that specifies the levels that must be applied to reduce risk. This approach has a direct impact on the lifting and rigging world where the addition of an engineering control is welcome. The Engineering Control is a control measure that is physical in nature, including a mechanical device or process. For instance: use mechanical devices such as trolleys or hoists to move heavy loads; place guards around moving parts of machinery; install residual current devices (electrical safety switches); set work rates on a production line to reduce fatigue. The Engineering Control may also include design or modifications to plant, equipment, manufactured systems, and processes that reduce the source of exposure. For example, an engineering control measure could be to add lifting eyes to the abovementioned commercial air conditioner. This affects many items that in today’s approach the rigger is left to their own devices to figure out. As we move forward to a new legislative environment we now must start to take their job into account. It could be that steel frame being lifted or that heavy and awkward plant? Consideration must be given to the chance of rigging failure. Can we do something better during
the design phase? Some of the questions could be: 1. How will it be installed? 2. How will they apply the rigging? 3. How will they remove the rigging (will it be at height, should lift eyes be at the bottom)? 4. Where is the centre of gravity? How will this affect the lift? Should we indicate it? 5. Will sharp edges cut the rigging? 6. Do we need to provide guidance on rigging? 7. Do we need to add lifting eyes? The simple fact is that under the proposed health & safety regulations, manufacturers should now take into account the possibility that their product will be lifted by a crane and must be engineered to enable lifting. The new legislation requires all participants in a crane lift to be aware of the Hierarchy of Control and to apply that into the production processes, operational procedures, and their health and safety practices.
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The Volvo LM841 It may come as a bit of a surprise to you, but Swedish company Volvo has been manufacturing wheel loaders now for over 60 years. BY RICHARD CAMPBELL VOLVO’S FIRST WHEEL loader was known as the model H10, and, as occurred in many other countries, it was based on a farm/agricultural tractor with a loader frame added on the back with the machine effectively operated in reverse. This is also how Hough, Tractomotive and many other manufacturers got their start in the wheel loader industry. Known as the H10, the machine was introduced in 1954 and was a 2-wheel drive loader, powered by a 3-cylinder 35 horsepower diesel engine with 5-speed manual transmission. It was usually fitted with a one cubic yard bucket. A tray was placed in front of the machine’s radiator to hold concrete or steel slabs to provide extra counterbalance when operating. It featured a couple of notable ‘firsts’ in the developmental history of wheel loaders – parallel lifting arm geometry and 64 www.contractormag.co.nz
a quick coupler so other attachments could be used. This whole concept was rather revolutionary for 1954. From the start, Volvo had always been very safety and operator-focused and the H10 was no exception, putting the operator right up front with an excellent view of the work area. Over the intervening years the design was refined and improved upon until we get to this month’s review subject and the last of the H10 lineage, the LM841. Introduced in 1972, the LM841 formed part of Volvo’s “all-rounder” series of machines, meaning that they were fit for almost any purpose the customer wanted to use them for – a true utility machine. Featuring all-wheel drive, the LM841 was a true wheel loader, having long lost the ‘agricultural’ appearance of the original H10, and was almost twice the size of its
groundbreaking forebear. Powered with a 313 cubic inch displacement Volvo D50B diesel engine, the LM841 had a 4-speed powershift transmission and a choice of buckets up to two cubic yards. During 1975 the LM841 received an upgrade in the form of a new engine, the 118 horsepower Volvo model D60A. This was a larger displacement engine than the previous model D50B engine – 334 cubic inch versus the 313 cubic inch D50B – and further extended the engine’s reliability by removing internal stresses. In the mid 1970s, the LM841 was one of the few rear wheel steer wheel loaders still available from a major manufacturer. Although Volvo had already begun to market articulated steer machines, the LM841 remained in production because it was so popular. The LM841 was finally discontinued in
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1978 with Volvo manufacturing almost 2300 machines of the type. LM841s were well liked by owners and operators alike as reliable and tough machines. They were equally at home in quarries, road construction or the logging skid or feeding hoppers at concrete and asphalt plants.
A 1973 Volvo LM841 described Entirely manufactured by Volvo, the LM841 was powered by a 6-cylinder, 112 horsepower Volvo D50B diesel engine. Mated to a 4-speed powershift transmission, the machine had active 4-wheel drive at all times and a diff lock in the front differential to prevent wheel spinning. Power-boosted steering was standard and gave the machine a turning radius of just over 18 feet. Air over hydraulically actuated disc
brakes were standard. The loader frame was manufactured integral with the massive main chassis with the main loader arms being pinned just behind the cab and lift and tilt cylinders mounted to the main body of the machine. Hydraulic hoses were well routed out of harm’s way as were the lines to the machine’s quick coupler. A large bumper was fitted to the rear of the machine and formed part of the rear counterweight with stop and reversing lights inset into the casting for safety. The long steel plate loader arms gave the LM841 considerable reach meaning the operator did not have to get too close to trucks when loading or stacking. As mentioned previously, Volvo utilised a quick coupler on the loader arms and was the first manufacturer to do so. The operator sat right up front with access though a door in the front of the cab.
1. This is the machine that set Volvo up in the wheel loader business, the H10. Its agricultural background is very obvious. The operator entered the machine through a door in the front of the cab. Extra counterweight was added via a shelf welded to the mainframe at what used to be the front of the machine. The bucket held one cubic yard. This preserved example of a 1954 H10 is located in Eskilstuna, Sweden at the Volvo Museum. Photo: author’s collection
2. This particular LM841 is fitted with the optional 5.2 cubic yard light materials bucket for handling wood chips at this Swedish pulp and paper mill. Note the angled down rear hood and the way the rear counterweight affords protection to the steering axle tyres. Photo: author’s collection
JUNE 2015 65
CONTRACTOR CLASSIC MACHINES
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1. A t work on an industrial building site. At this stage of the machine’s development all resemblance to the original H10’s agricultural heritage has just about vanished. The LM841 was an exceptionally rugged machine and could handle all manner of work. Photo: author’s collection
2. Equally at home on the construction or skid site, this LM841 is equipped with a log grapple for handling thinnings. One can see in the photo that the machine has a very good reach advantage for this particular work. The particularly neat hydraulics arrangement is noteworthy. Photo: author’s collection
BRIEF SPECIFICATION Volvo LM841 Engine: Volvo D50B 6-cylinder naturally aspirated diesel engine rated at 112 flywheel horsepower at 1700 rpm. (Note: from 1975 on, the LM841 was fitted with a 118 flywheel horsepower Volvo model D60A 6-cylinder engine until the type was discontinued.) Transmission: Volvo 4-speed full powershift transmission with integral torque converter. Top Speed: 16.5mph (26.5kph). Steering: Twin hydraulic booster on rear axle. Turn Circle: 18’ 8” (5.7m). Brakes: Air over hydraulic discs on front axle. Tyres: Front axle: 18.4x34 E3 Rear axle: 14.9x24 E3 Bucket Size: From 1.7 cubic yards through to 5.2 cubic yards (light material). Length: 18’ 10” (5.75m). Width: 7’ 3” (2.2m). Height: 9’ 1” (2.76m). Op. Weight:
10 tons.
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Getting in and out was probably not the easiest as one had to climb over the loader arms to get into the cab. However, Volvo also had another first here as the cab was rubber mounted, sound insulated and fully safety certified – long before ROPS became mandatory for this type of machine. Inside the cab the interior was fairly spartan with a central steering column and loader controls and operating instruments located on a console to the operator’s right. Visibility was excellent except to the rear as the machine had quite a long rear hood. Volvo attempted to alleviate this somewhat by angling the rear hood downwards at about a 20 degree angle. For the day, the machine was quite easy to service from ground level, much thought having been given to the mechanic to perform his daily duties!
Optional attachments As befitting a machine with a quick coupler, Volvo offered quite a range of extras to outfit the LM841. It was a real materials handler and well ahead of its time. General purpose buckets from 1.7 to three cubic yards, and light material buckets up to 5.2 cubic
yards could be readily attached along with log forks, log grapples, a finishing dozer, snow removal equipment and all manner of lifting apparatus. An extra two hydraulic valves could be added to the main hydraulic system for use with log-handling equipment or other attachments that required a hydraulic function.
The NZ connection There were quite a few LM841 loaders imported into New Zealand. Unfortunately, the records of the then franchise holder Dalhoff & King have not survived and it is not known just how many of these machines were imported. Your author would be interested to know if any of these machines are still around or in operation.
For the model collector As a refreshing change, the author is pleased to report that there is a model of the Volvo LM841 available. This is offered in 1:50 scale by respected diecast manufacturer NZG from Germany. On the downside however it, like the real machine, is long out of production but can be found occasionally on online auction site Ebay. Expect to pay over $200 for a reasonable example.
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3. The hydraulically operated quick coupler made changing attachments very easy. In this photo, the LM841 is equipped with a snow plough attachment for keeping the roads clear. Special snow tyres have also been fitted on the larger drive wheels for added tractive effort. Volvo’s safety cab was equipped with a 2000 watt heater as standard equipment, which must have been well appreciated in this environment. Photo: internet
4. This LM841 is equipped with a larger than usual bucket for handling mulch. Placement of the cab gave the operator control tower visibility at all times and was sound and heat insulated. It could also withstand a rollover. This was at a time before ROPS legislation had been introduced making Sweden a world leader. The LM841 was well liked by owners and operators. 5. Great rear end shot of an LM841 in action. The big bumper was also the counterweight and afforded quite a bit of protection to the machine’s rear. Stop and reverse lights are inset into the counterweight. The LM841 had good ground clearance to avoid being hung up on obstacles or very rough terrain.
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Photo: author’s collection
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6. NZG Modelles version of a Volvo LM841 to 1:50 scale. While a little crude by model standards of today, it is still a very accurate replica of the machine. The model was introduced in the early 1970s (as was the machine on which it is based). An example in good condition like this one will set you back over $200 and even more if the original box comes with it.
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JUNE 2015 67
CONTRACTOR MOTORING BY PETER GILL
DEATH WISH ON THREE WHEELS
Oh, how things have changed. I can just imagine the OSH bloke, and the ANCAP testing officer, being confronted with this. The Morgan Three Wheeler open sports car. It was built from 1928 to 1936 and versions of it could attain speeds of up to 130kph. On three wheels. If you had one as an office car and fast forwarded to today, OSH would view it as a workplace. Your business would be prosecuted for exposing workers to unnecessary risk. It would be pointed out that even farm bikes and old folks’ mobility carts have abandoned three wheels now. Anyway, the Morgan Three Wheeler went on to do reasonable business for the British sports car company. It wasn’t until 1936 that Morgan worked out that cars were more stable if they had four wheels. Morgan had another crack at the trike idea in 2013, but the model got the thumbs down from the market. Others have tried trikes, too, such as Aeriel with the Atom, but in your scribe’s personal view, they remain a niche vehicle for those with a death wish.
Safe from the ‘OSH’ bloke
The Skoda miracle Oh, how things have changed. It doesn’t seem all that long ago when we were telling Skoda jokes, such as, “Why does a Skoda have a rear window heater? So you can keep your hands warm while pushing it.” “What do a Skoda and a sheep have in common? Nothing. But you’d rather be seen getting into the back of a sheep.” From all of that in the late 1980s, to this: the brilliant Skoda Fabia right here in 2015. This brand has gone from being a third world Czechoslovakian government owned car that was criminally awful, to being an extraordinarily competent and driveable car. The Czechs decided they could not afford to bring their car up to modern standards and sold the whole show to VW. They made it a proviso that the jobs would stay in the Czech Republic. From that marriage came a stream of cars packed with VW technology, and very good cars, too. The 2015 Fabia has a 1.2 litre petrol engine, starts at $19,990, and drives like a dream. You no longer hear: “I’d like a windscreen wiper for a Skoda please. Sure – sounds like a fair swap.”
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Speaking of the OSH bloke, as we were elsewhere on these pages (talking how things change Peter, there hasn’t been an ‘OSH bloke’ for over a decade – Ed), I was polishing the beast one day last year when it occurred to me that he still has a battle not won. “What? Are you telling me that people can pump a highly explosive liquid into a motor vehicle by themselves?” “What? They can then sit on top or just forward of a thin plastic tank of said explosive liquid and go about the place willy nilly. We have to stop this.” As he rushes out to his Kia Picanto in the car park, he trips over the nine clipboards and one steel tape measure that he is carrying, and then trips again on the straggly bottom strands of his beard and his broken leather sandal strap. He goes home sick. We are safe for another day. We can relax and return to gently polishing the beast.
The deceptive Dale How things have changed. Forty years ago, in 1975, I was a callow youth, interested in what callow youths are interested in: girls and cars. But the first major fuel crisis had hit us. The Muldoon government made us observe carless days. You had to nominate one day a week on which you would not drive your car. But you could get exemptions based on various grounds and still drive on your carless day. I had an exemption because I was a volunteer firefighter, another because I was a 24/7 shift worker at the State Broadcaster, and another still because I lived more than 30 kilometres from my place of work. If I wanted to, I could have auctioned off exemption stickers in the local pub for good money. But the fuel crisis, which affected much of the western world, saw entrepreneurs go into craze mode. Like inventing fuel crisis-beating cars. This one is the Dale, a 2-cylinder creation that was supposed to run on the smell of an oily rag. ‘Dale’, the American woman who promoted the car, turned out to be a fraudster. The car was useless, and Dale was later revealed to be a man.
WHY THE MODEL T WON Oh, how things have changed. Remember that quip from automotive history that quoted the Ford Model T salesman? “You can have it in any colour you like as long as it’s black.” Not a lot of people will remember that the same applied to telephones in the 1950s, when they were doled out on ration by the New Zealand Post and Telegraph Department. Anyway, in 1999 I got a call from Switzerland asking me if I would be a judge to decide on the World Car of the 20th Century. There were to be judges from some 20 countries. Cars like the Citroen 2CV, Fiat 500, Morris Minor and such like were all contended. But in the end, the majority vote was for the Ford Model T. And rightly so. It brought motoring to millions who relied on horses prior. It could be fixed by a blacksmith. And you could have it as a car, van or truck. A number of Model T trucks can be seen in New Zealand car museums. Some 15 million Model T cars, trucks and vans were built between 1908 and 1927. It had to be our winner, and it was.
www.bigblocks.co.nz
Artistically confused This latest creation from Mazda will just fly out the showroom door given the market’s thirst for sitting up high in a vehicle that looks as though it has urban terrorist capabilities – maybe hidden machine guns? Mazda has jacked up its brilliant “3” car, and delivered a criminally ugly and hissingly aggressive SUV called the CX3. The market will love it. These days, the uglier a car is, the better it sells, as Jeep has proven. The car buying market just loves the look of aggression. If you look at the CX3 as I look at it, it is the most artistically confused vehicle I have seen in a long time. Which means that in every affluent suburb of New Zealand, a well-heeled woman will be driving one soon.
INTERLOCKING PRECAST CONCRETE BLOCKS PH 0800300488 TODAY
JUNE 2015 69
CONTRACTOR INNOVATIONS
Concrete innovations A 1950s war memorial in Auckland’s Mount Roskill originally commissioned under legendary mayor Keith Hay was given a makeover for this year’s ANZAC day based on a winning design concept by three Auckland University Students, which includes angular berms, custom paving and cast concrete. Auckland Council managed the design detail and the work was completed by John Fillmore Contractors with custom paving and cutting edge concrete solutions produced by Auckland’s Jagas Paving. The berms required 27 cast concrete sections of varying angles and tapers to achieve the oblique result, which borders the enlarged parade ground. For durability, the concrete was reinforced against geological movement using seismic fibre and concrete mixes that contain the same additives used to strengthen dykes in Holland. This additive will continually grow and fill porous areas and minor cracks.
The new Hitachi ZX17U-5 and ZX26U-5 Hitachi Construction Machinery upgraded its compact-class excavator line with the new ZX17U-5 and ZX26U-5, the smallest excavators in the brand but with big-time performance on all kinds of jobs. The Dash-5 Compact Excavators feature improvements designed to provide efficient production, enhanced comfort and simplified maintenance and are designed for numerous industries including general contracting, plumbing, rental, commercial/ residential building, landscaping, and site development. They also feature simplified maintenance with an added steel service door and side-by-side cooling cores. Additionally, the ZX17U-5 features redesigned blade extension pins, and the upgraded ZX26U-5 operator’s station provides wider entry and better visibility.
New vacuum excavator New from Ditch Witch is the FXT60 truck vacuum excavator, a versatile machine with the power to perform a wide variety of cleanup tasks, especially larger jobs in difficult-to-access locations. With 29.1m3/minute of suction power and a highpressure water system with a 21 litres/minute, 3000psi (207 bar) water pump, the FXT60 has more than enough power and suction for large cleanup jobs. The FXT60 is available on a Class 6 or 7 single-axle or Class 8 tandem-axle truck. For more information ad specs see www.ditchwitch.com/ vacuum-excavation/trailer/fx60
CONTRACTORS’ DIARY Date Event 19 Jun
Venue
Contact
CCNZ Nelson Marlborough Awards
Annesbrook Community Church, Stoke
nelson.marl@civilcontractors.co.nz
27 Jun
Shed 10, Auckland Waterfront
www.nzcontractors.co.nz/auckland+branch
Hynds Contruction Awards
8-10 Jul
Crane Assoc of NZ Conference Trinity Wharf, Tauranga
www.cranes.org.nz
15-17 Jul
QuarryNZ Conference
Claudelands, Hamilton
www.quarrynz.com
5-7 Aug
Civil Contractors NZ
Taupo
12-14 Aug
NZ Heavy Haulage Conference James Cook Hotel, Wellington
28-30 Jun 16 Hillhead Quarry Exhibition
Lafarge Tarmac’s, Hillhead Quarry, England
Please send any contributions for Contractors’ Diary to kevin@contrafed.co.nz, or phone 09 636 5710
70 www.contractormag.co.nz
www.nzcontractors.co.nz www.hha.org.nz www.hillhead.com
Earthquake proofing Sean Gledhill, Technical director at Aurecon, beside one of the 61 base isolators installed into the seven-storey, Grand Central building to be built on the site of the demolished Grand Chancellor Hotel in Christchurch. The triple pendulum friction bearings from EPS in San Francisco will allow the building to move up to 658mm in large earthquakes to dissipate seismic energy. In a large alpine fault rupture this may result in movements of up to: 550mm east to west and 625mm north to south. Gledhill, who is overseeing the installation, says that in a small earthquake the building will still be operable. “In a larger earthquake (as experienced in Christchurch 2010-2011) there could be localised damage such as non critical services pipes, but these would be easily repairable and the building would be fully operational shortly after. “In the rare event of a very large earthquake such as an alpine fault fracture, up to 10 percent non-structural damage may be possible, but the structure would not be damaged. Once this has been repaired the building would be ready for reoccupation if evacuation is needed.”
Temporary roads! Made from polypropylene and high tensile steel or fibreglass and manufactured in Holland, Mammoth mats provide a rapidly installed temporary road allowing vehicles to traverse soft ground without leaving ruts and to cross ground that would be impassable without costly civil work constructing metal roads. New Zealand supplier Fast Track Roading has three types of mats available: • Bog mat: Primarily a 4x4 or light truck vehicle recovery mat, 5.5 metres long by 0.5 metres wide. • Light track way: Specifically designed to be deployed manually, rolls are 3.1 metres wide x 18 metres long, weighing 150 kilograms, ideal for trucks, 4x4s, loaders etc. • Heavy track way: Deployed most efficiently using a hydraulic roller mounted on a loader, rolls are four metres wide by 25–50 metres long, weighing 1500 kilograms, suitable for all heavy machinery, cranes, drilling rigs, truck and trailers etc and capable of carrying loads of up to 100 tonnes depending on ground conditions. All types of mat are available for sale or hire, with an installation service provided by Fast Track Roading. For more details contact Richard Linthwaite on 021 0831 0025.
Komatsu unveils new rental business Komatsu has unveiled its new equipment rental business, Komatsu Rental, offering a fleet of more than 200 Komatsu construction and utility machines throughout Australia’s east coast and New Zealand with dedicated rental branch locations in Auckland, Brisbane, Sydney, and Melbourne. The current fleet includes quarry-spec machines such as excavators from 5.5 to 85 tonnes (including hybrid machines), wheel loaders, rigid and articulated dump trucks, back hoes, and ‘machine control ready’ dozers and graders able to take a range of 2D and 3D machine control GPS systems. According to Geoff Pisani, Komatsu Rental’s national rental manager, the business was established in response to changing customer needs. “These days, major customers are preserving their capital for fixed plant and infrastructure and are increasingly looking to rental as a flexible solution to supplement their existing mobile fleet, especially during periods of increased production.” Pisani says Komatsu Rental customers will enjoy the same level of support and peace of mind that is available to a Komatsu machine owner including access to the Komtrax and Kowa machine management reporting systems, and complete integration with technical and service operations. JUNE 2015 71
CONTRACTOR CIVIL CONTRACTORS NEW ZEALAND
Working for members News pages, covering the association’s latest news, views, activities and intentions.
Great news! ACC levy rates have been reduced Work levies paid by employers and self-employed people to cover workplace injuries are going down by an average of five percent, putting more money back in the pockets of business owners and selfemployed people. Motor vehicle owners will also benefit from the reduced levies. From July 2015, the cost of the ACC levy portion of your car registration (vehicle licensing fee) is going down by an average of 41 percent depending on your vehicle. There will also be a reduction in the ACC petrol levy by three cents per litre (from 9.9 cents to 6.9 cents). These levies go towards covering injuries that involve a moving motor vehicle on a public road. You can find more information about the 2015/16 rates including what your individual work rate and motor vehicle levy is on the ACC website at acc.co.nz/levies.
Awards beckon Civil Contractors New Zealand/Hirepool Construction Excellence Awards Entries are being sought for the Hirepool Construction Excellence Awards with categories and entry details now available. Contact Malcolm Abernethy Civil Contractors New Zealand/Z People Awards Entries are being sought for the Z people Awards with categories and entry requirements now available. Contact Tricia Logan
the NZ Transport Agency’s ‘Procurement-tools’ web page: http://www.nzta.govt.nz/resources/procurement-manual/ procurement-tools.html NZTA Contract Proforma & Contract Procedures Manuals have been updated • SM021 Contract Procedures Manual • SM030 SH Professional Services Contract Proforma Manual • SM031 SH Construction Contract Proforma Manual • SM032 SH Maintenance Contract Proforma Manual The update of these manuals captures a number of significant changes to our approach to procuring and contracting with suppliers to the Transport Agency’s Highways and Network Operations group. For each manual a summary of amendments is provided on the manual download page. A roadshow, that includes a summary of the key changes is also planned for May 2015. The new versions of each of these manuals will be available for download via our website (http://nzta.govt.nz/network/tenderscontracts/tender-process.html). Transport Agency users can also access these manuals via the internal drive system (T:/manuals and forms/), and all manuals will shortly be placed on InfoHub. It is expected that any new contract documents (that have not yet commenced development) will be undertaken using this updated documentation.
Retentions
Procurement
Civil Contractors New Zealand made a submission to Ministry of Business, Innovation and Employment on proposals to include retention rules in the Construction Contracts Amendment Bill. Retentions are being considered as part of the Construction Contracts Amendment Bill which is currently going through Parliament.
The latest Cost Index Values for both Infrastructure and Public Transport for the December 2014 quarter are available via the links on
• For more detail contact Civil Contractors New Zealand, Malcolm Abernethy.
Civil Contractors New Zealand/Connexis Company Awards Entries are being sought for the Connexis Company Awards - entry requirements are now available. Contact Tricia Logan
•
ADV ERT ISERS INDEX Advancequip 51
Global Survey
Allied Petroleum
Gough Cat
CablePrice Conferenz CCNZ
27 IFC, 1, OBC 8, 37 60, IBC
57 5, 13
Ryco 12 Synergy Positioning
Hynds Pipe Systems
47
Taylor Built
67
Kiwi Asset Finance
33
Total Oil
29
OMC Power Equipment
Contractor subscription
55
Pond Lining Systems
Counties Ready Mix
69
39
7
Transdiesel 11
63
Trimble 21
Porters Equipment
2
Digga 9
Power Equipment
14
DitchWitch NZ
Prime Pump
41
72 www.contractormag.co.nz
15
Hirepool 61
Connexis 59
45
REL Group
Wirtgen NZ
25
Youngman Richardson
31
Entries are open for the:
PRODUCTIVITY | UPTIME | LOW DAILY OPERATING COST
Offering one-of-a-kind advantages and unequalled options John Deere G-Series Graders are the grader of choice with the Grade-Pro (GP) option sweeping the world by storm!
150415_JD_Grader
The GP Graders come standard with Integrated-grade-control (IGC), ready for you to install the 3D grade control system that suits you, whether it be Trimble, Topcon or Leica. The John Deere GP graders work with them all. GP Graders also boast state-of-the-art features such as automatic cross slope, armrest-mounted fingertip controls, joystick steering, and for operator preference & safety during transport, a steering wheel is fitted as standard. Other standard features include Deere’s Autoshift transmission, 10 worklights for grading, a rear ripper and scarifier combination, rear view camera and a blade impact absorption system. With options like these, it’s no wonder that the John Deere G-Series should be your next grader of choice. Contact your local CablePrice (NZ) Ltd sales specialist today to find out more.
0800 555 456 I sales@cableprice.co.nz I www.cableprice.co.nz