April May 2014

NEW ZEALAND’S MOST QUALIFIED BUILDERS

APRIL/MAY 2014

InHouse THE OFFICIAL MAGAZINE OF CERTIFIED BUILDERS ASSOCIATION OF NEW ZEALAND

NEW ZEALAND CARPENTRY APPRENTICE CHALLENGE PAGE 30

BUILDING TOMORROW TOGETHER Claudelands Conference & Exhibition Centre 26/27 & 28 June - Register Online Now!

CERTIFIED BUILDERS CONFERENCE 2014 PAGE 24

CONTENTS

MESSAGE FROM THE CHAIR

With consent numbers rising to record levels we are finally starting to see the much-anticipated resurgence of the construction sector.

IN THIS

ISSUE Message from the Chair

1

From the Operations Desk

3

Association News: Building Contracts

4

Trade Secrets

7

Certified Plans

8

Although driven primarily by activity in Christchurch and Auckland, there is definitely a trickle-down effect to the smaller regions who are reporting large increases in positive enquiries. As long as there are no major hiccups along the way we should enjoy sustained workloads for the next few years. It is a great time for launching Certified Plans which is close to being available to those who bought into the scheme. I must acknowledge the work of the advisory group whose positive and professional input has resulted in a suite of plans that will offer a very desirable option for your clients looking to build a new home. I hope you all enjoyed the last Roadshow and I must congratulate Buster, Jason and Grant on a presentation full of useful information for our members. Even the old guys took away some new knowledge!

On a more serious note, our clients are becoming a lot more litigious and also more willing to approach the media, as you might have seen on a recent Campbell Live programme. These are often extremely one-sided but can still cause some damage to our good name. It is essential that you maintain regular communication with your clients and keep detailed records of those conversations including photos if applicable. If a potential issue arises make sure you defuse it as soon as possible before it escalates into something more serious. Remember there are dispute resolution procedures. Be aware of them and inform your clients.

Around the Regions

10

Feature: Concrete Construction Course

15

Feature: Written Subcontracts

16

Feature: Beacon

20

Feature: Advantage Business - Recession

22

Feature: Centrespread - Conference

24

ITAB

30

Feature: Big Changes in Consumer Law

37

Association News

41

Feature: Exempt Building Work

43

Our Hamilton conference will soon be open for registration so check out the information in this issue and organise yourselves. Most of our North Island members can drive there so no excuses.

Come along and help make it the best one ever.

Feature: Benchmark and Grow

47

Cheers

Message from the Chief

49

Dave Brown Chairman

Contact Farming House 102 – 104 Spring Street PO Box 13405, Tauranga Central, Tauranga 3141 Phone: 07 927 7720 | Freephone: 0800 CERTIFIED Fax: 07 927 7721 | Email: editor@certified.co.nz www.certified.co.nz INHOUSE | APRIL/MAY 2014

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CBA

INSURANCES Contract Works Insurance – more issues to be

There are some common issues with contract works insurance that Certified Builders (indeed all builde rs) should be aware of. This article outlines two more traps to watch out for.

Mind the gap between practical completion and gettin g a CCC

As we mentioned in the last issue, a contract works policy will expire on the EARLIER of:    

the policy end date, practical completion, when the owners start using the building, if a spec, when 95% of the budget is spent

Some house insurers will only insure a property that has a CCC, which means there could be a gap in cover between the time the property is practically comp lete, and the date the house insurance is arranged from (ie. when the CCC is issued).

SOLUTION: Make your clients aware that they must arrange house insurance from the point of pract ical completion, you cannot rely on the contract works insurance covering the building once it is practically complete.

“It’s important you make your clients aware that they must arrange house insurance from the point of practical completion.”

aware of

You may not be able to get cover if you’ve already started work

We have had a number of builders call us recently because they’ve been building their own houses without insurance, but need finance to finish them and the bank is demanding proof of contract works insurance.

Insurers are reluctant to provide cover after a project has started. This is because the cost of a claim towards the end of a project is higher than the cost at the start (the value of what’s on site increases over time) and they don’t like being asked to only insure the most risky period of the build.

They will require lots of extra information befor e agreeing to provide cover and the cost may well be higher than if you’d arranged it before the build started. What’s worse, they may even decline to provide cover, complicating the builder’s finance arrangements.

“The cost may well be higher than if you’d arranged it before the build started.”

SOLUTION: Arrange contract works insurance BEFORE you start building.

Jim is Managing Director of CBA Insurances and has been an insurance professional for more than 45 years.

He has been involved in the provision of insurance for the constru ction industry for over 10 years.

DO YOU HAVE THE RIGHT INSURANCE FOR A BUILDER? LIABILITY

Ring CBA Insurances for a quote for our Esse ntial Builders Pack:

PUBLIC LIABILITY + faulty workmanship LBP COVER HEALTH & SAFETY / STATUTORY LIABI LITY ERRORS & OMISSIONS (E&O) INDEMNITY

COMMERCIAL

VEHICLES CONTRACT WORKS INSURANCE (proje ct or annual) TOOLS & EQUIPMENT

Other cover is available, including all commercial and private/domestic policies

FAMILY

INCOME PROTECTION ILLNESS & DISABILITY MEDICAL KIWISAVER ACC COVER PLUS EXTRA

Call Gwenda on: 0800 237 843 e: insuranc es@cbainsurances.co.nz

2

INHOUSE | APRIL/MAY 2014

ASSOCIATION NEWS: From the operations desk

FROM THE OPERATIONS DESK Jason McClintock – Operations Manager

Builders risk Talking with members I see a common goal, and that is they want the best outcome for their clients and at times will go to great lengths to achieve this.

Unfortunately this can inadvertently bring risk across to them, their business and even at times their clients and in doing so unravelling the good they were endeavouring to deliver. Let me explain through an example. A designer specifies an exterior plaster finish, one which is used as a coating over precast panels to give it a unique fresh cast finish, however this product is specified as having a paint coating added. The owner has their hearts set on the fresh cast look, the builder has not become conversant with the product specs and the plasterer knowingly or otherwise cannot see a problem with this request.

At this point everyone is working towards a common goal of a happy customer. The finish is not quite as expected and turns out quite patchy, this does not meet the owners expectation who are no longer happy, holding up the builder last payment.

The plasterer gives the royal finger and walks away saying he has delivered what was asked of him.

Guarantee and builders obligations The owner then entertains a claim under the Homefirst Guarantee which quickly comes up short as there has

been not only a non notified change to plan, but more importantly a change to a product specification.

The builder has become the meat in the sandwich in that he has not delivered the promise made under contract.

The root cause of failure in this example is a growing occurrence and that is promises have been made under contract, however have not been delivered. More noticeable in recent times as work ramps up site supervision and contract management tends to slip. In the case above good intent to do the right thing has turned into a major headache. It’s critical to fully understand the plans, specification and marry this up with your promise made under the building contract; under LBP this is called working within your competency.

practitioners to identify when conflict might be heading their way and to act before it turns into a dispute. This can be a pretty dry subject to put into real terms so the Association has teamed up with FairWay to put an industry spin to it and deliver information which will be applicable on the building site, employment situations and even at home with teenagers. I invite you to join me at conference where FairWay will be holding an entertaining workshop on managing conflict.

In the example above the builder who has found himself with a plastering problem would have been much better equipped had he understood how to manage the cross fire of conflict between, designer, sub contractor and owner.

Handling conflict We are entering an age where practitioners are experiencing greater levels of conflict, whether it is on site dealing with trades and supply chain or owners questioning invoicing and contract conditions. Dealing with conflict and disputes is much like a building project; it’s about a process which allows you to put each stage into manageable boxes and dealing with them in a logical order. The tricky bit is understanding what goes into which box. Certified Builders understands this starts with education, allowing

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3

ASSOCIATION NEWS

New Contract available!

Preliminary Services

OST LA ND’S M NEW ZE A ED BUIL DER S QUA LIFI

Arising from a suggestion from our Presidents the Association has seen a need for a Contract suitable for use when the Builder has been asked to do some preliminary work in connection with a proposed building project, either prior to the project commencing, or as part of a feasibility study to determine if the project will go ahead.

Often this engagement is undertaken on the promise of further work, only to find the pending building contract sweep from under the builder along with any opportunity to re-coup costs with time, site survey, design or engineers.

The Preliminary Services Contract offers an opportunity for this, with only one page to fill in allowing for a Fixed Price+ or Cost and Margin type.

In the hope of a Building Contract at the end of this preliminary work, Geoff Hardy (who has helped with this contract) has done something rather clever. There is an opportunity for the owner to declare if the builder will be the head building contractor for the intended project, with

ICES ARY SERV

PRELIMIN

CONTRAC

nga 3110 g Street, Taura fied.co.nz www.certi 102 - 104 Sprin ed.co.nz | ing House, nd | Farm E: info@certifi 927 7721 | of New Zeala 7720 | F: 07 Association Builders | P: 07 927 nga 3141 Certified Centr al, Taura , Taura nga

PO Box 13405

a yes, no or maybe box ticked. As there is often no quote or estimate on the table at this stage, the binding of ‘offer and acceptance’ cannot “kick” in. However a moral intention has been entered into, if yes has been ticked the builder is in good shape, if no then they have a better understanding what lies ahead. If maybe is ticked then the builder has some convincing to do.

This Contract is only accessible on the Certified Builders website. Simply login and fill one in electronically for you to print out. www.certified.co.nz/members/online-contracts/

Building Work Schedule One Jason McClintock – Operations Manager

A new guidance document on work which can be done without a building consent has recently been published by the Ministry of Business, Innovation and Employment. I urge you to keep this one close.

Simply visit the Certified Builders website and within the knowledge section click on the link for Schedule One. The good news is it simple to use and has suggestions on best practice. The bad news is, it will not be published to print so you’ll need to access it electronically.

Giving professional advice practitioners have to be wary that information about work which triggers a consent is accurate, or they may just find someone looking to recoup loss 4

INHOUSE | APRIL/MAY 2014

suffered from acting on poor advice.

This often happens when selling a home and a building report reveals unconsented work.

The Guidance book has plenty of examples of what un-consented verses consented work looks like. Tips for the builder and homeowner, such as adding a sketch of the work into the property file, so when that building report is done it is clear as to the compliance path chosen.

Examples of un-consented work The Guidance book explains like for like and gives examples, in the past it was left up to interpretation which caused some interesting debate between owners and Building Consent Authorities.

The work done still has to comply with the Building Code, so things like the durability and weathertightness expectations must still be achieved, and don’t forget to consider the district

T

ASSOCIATION NEWS

An update on our Online Building Contracts The girls in the office have been busy testing and proofing a number of online contracts over the past few months! We are happy to announce the following contracts are now available online!

• Fixed Price+ • Cost & Margin • Fixed Price+ (Labour Only) • Cost & Margin (Labour Only) • Small Works and Alterations • Preliminary Services

Online Contracts are so simple to use! Raise your professionalism and give it a go!

• Enter the job information on an easy 6 step template • Save and close at any time if you need to come back later • Email the draft contract to your client so they can read it over before signing • Print the completed contract and present it to your client • Certified Builders can personalise the front cover of the contract with your company logo!

If you would like some guidance on using the Online Contracts please call Millie at any time for a chat - 07 557 9214. We hope these online contracts help in streamlining your business process that little bit more?! www.certified.co.nz/members/online-contracts/

plan, this one often catches people out when building close to the property boundary.

Let me explain through an example; according to the Guidance book you can re-roof a clay tile with long run. However let’s consider what this might look like to be code compliant, different flashings, purlin size and fixing will now be different, wind and snow loads to consider. As a competent LBP would you know what these would be to meet the requirements of the code, practically that of durability and weathertightness. So even though a

consent may not be needed you may still need to consult a design LBP to give guidance, and because one day someone will be asking the question of how and where, you can see how slipping this design and who did what into the property file is a good idea.

wire fence around a residential tennis court, even if well clear of boundaries requires a building consent as it is over 2.5 meters.

From the - did you know file

Thermal insulation other than an external wall or an internal wall that is a fire separation wall can be installed without a building consent.

Any building work relating to fences [which includes garden walls] and hoardings up to 2.5 meters is covered

by Scheduled One and will not need a building consent [keeping in mind the District Plan]. However a 3.5 meter high

Verandas and porches under 5 square meters can be closed in without a building consent.

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ASSOCIATION NEWS

6

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TOOL SEMINAR BOX SERIES ASSOCIATION NEWS: 2014 UPDATE

Trade Secret Seminars Buster Coughtrey – Membership Development Manager

By the time you read this I will be nearing the end of the ‘Trade Secrets’ seminars.

I have had the pleasure of covering the whole of New Zealand with this seminar, (and have loved every minute of it, thanks everyone) which has been full of good advice, some trade secrets and good input and debate from the members, especially around Insurances, faulty workmanship, client feed back and the incoming Amendment Act No4. As the logo said “Some real gold nuggets stuff for our members to take home and put in place”. The other thing which was great to see was the wives and partners attending this seminar, taking notes and getting some insight into the business side of the seminar.

I made a comment in this seminar about the Association being there for all our members to help them, so they are

Certified Builders Association

NOTICE OF ANNUAL GENERAL MEETING t the Annual General Notice is hereby given tha lders Association of New Meeting of Cer tified Bui be held on Saturday 28 Zealand Incorporated will at 3.15pm in Claudelands June 2014 commencing lands Conference and Heaphy Rooms, Claude r of Brooklyn Road and Exhibition Centre, Corne n.

Heaphy Terrace, Hamilto

not learning from the school of hard knocks. So before you make the same mistakes that others before you already have, or maybe you are not sure of something, give the Association a call. It won’t cost you anything but could save you a lot of money. So get along to the next seminar in your region to find out how to keep your business on the straight and narrow.

As I have said before, bring along the guys that work for you as they will get a better insight to where you are going in your business and the reasons behind it. If you can get buy in from your team around these seminars when they are on site, they will understand the reason behind the things that you are doing on site and your jobs will run a lot smoother.

of New Zealand Incorporated

AGENDA 1 Welcome and Apologie 2 Minutes from last Ann

s

ual General Meeting 18t

h May 2013

3 Chairman’s Report 4 Chief Executive’s Rep

ort

5 Presentation of the Ann

ual Financial Report for

the year 2013

ectors of Board 6 Announcement of Dir ) 7 Special Business (if any 8 General Business

INHOUSE | APRIL/MAY 2014

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ASSOCIATION NEWS

LAUNCH IS LOOMING! Our collection of Certified Plans has now been completed by our designer and they look fantastic!

With a series of 24 plans there is plenty of scope and choice for everyone and the tools we will be providing our Certified Plans members will play a pivotal role in securing new leads and business. www.certifiedplans.co.nz is well under construction incorporating a number of different filters and layers enabling the home owner to navigate their way around quickly and simply to find a plan they like and a builder of their choice.

Additionally, we are putting together some informative Point of Sale material for the homeowner including imagery of the plan perspectives which they will find appealing and inviting and therefore easily imagine themselves living in one of the homes listed. For the Member we are providing material relating to the Certified Plans along with processes of how to turn your jobs into reality with the designer.

For further information contact Julie at National Support Office: julie@certified.co.nz 0800 237 843 www.certifiedplans.co.nz

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INHOUSE | APRIL/MAY 2014

The launch of this scheme will be promoted through an online media campaign once all aspects of the initiative have been completed. This will enable us to deliver a complete and professional package to both our Certified Plans Member and the Home Owner and it will be well worth the wait!

We thank everyone for their support and patience.

www.certifiedplans.co.nz

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NZ Safety prize winners

Built It Expo Western Bay of Plenty CBANZ held their inaug ural BUILD it Expo on the Tauranga Yacht an February 27th at d Power Boat Club. We had a fantastic range building related stand of building and holders with a total of 22 stand holders. Those got to see firsthand som who attended e ver y innovative new ideas in building produ and fall protec tion sys cts, scaffolding tems, and some good IT support systems for technology within the using digital ir business and on the building site. We had on the day as well, thi some games to play ngs like Giant Jenga, Guess the Timber and building related game An gle and other s. The event was ver y well supported by bu other sub trades and ilders, designers and everyone went home happy and well fed.

There were plenty of prizes to give away wit h each stand holder ha prize to the value of $10 ving to supply a 0. The prizes ranged fro m a magnum bottle of tools, a fishing rod an Champagne, d finally the main prize of an Air New Zealand away for two. This was Mystery weekend won by Mike Goodall of JL Mills Builders, a recently married ma n who I guess will be ha ving a second honeymoon! Enjoy the weekend Mike!

I want to thank my comm ittee and co-ordinato r who all put in a big effort to make this eve nt the great success it was. Thanks Guys!

Mike Way President WBOP CBAN Z

Major prize winner was Michael Goodhall

10 INHOUSE | APRIL/MAY 2014

Sarah Wheeler, NZ Safety providing eye protection

Resene Construction Systems winner

Canterbury’s Certified Builders Annual Golf Tournament

Held 21st Feb at Kaiapoi Golf Club organised by the Christchurch Committee of CBANZ There was a good attendance of Canterbury Builders with approximately 100 playing Ambrose. The focus was on playing and networking with each other, not on being the best golfer although there was some great shots played.

The local builders really appreciated the attendance of both Grant Florence and Dave Brown, with Grant playing and Dave on the drinks cart getting around and talking with all the players and making sure they did not dehydrate on a ‘cracker’ Canterbury day.

There was plenty of on course BBQ’s and food, and also a meal in the club house at the end, providing focal points for builders to get together and the oppor tunity to mingle and talk.

There were some great prizes supplied by our sponsors. Some of the major prizes were supplied by the main sponsor Hamptons ITM and also Winstone Wallboards, Blacks Fasteners, Ramset & Oakleys Plumbing.

There were also many other minor sponsors and without them we wouldn’t be able to run this event - so builders don’t forget to support them.

The builders also liked and looked great kitted out in their Certified Builders Golf Tournament polo shirts.

All in all a great day had by all, and we look forward to next year’s golf match.

INHOUSE | APRIL/MAY 2014 11

The Waikato-Coromandel members had a great day out on the Snapper Fishing Safari Tours

All members arrive back safely

Homeward bound

Buster with his good catch

Vic Ankersmit with Kingi

Smiles at the filleting table

12 INHOUSE | APRIL/MAY 2014 Chairman & Warwick Leigh-James Take Note

Well Mr Chairman not sure about this one

REGIONAL AGM’S Over the last few weeks, starting with the Auckland AGM, I have had the pleasure of travelling around the country and attending many of our regional AGM’s. Whether it’s a small region like Blenheim or a large one like Auckland I am amazed at the enthusiasm and commitment of our Presidents, committees and members. As I’ve often said before, the strength of Certified Builders lies in the regions at grassroots level and this has definitely been reinforced to me over the last little while. Nelson in particular is a prime example of a strong and healthy region with 25 of their 85 members turning up to support Garry Nott and his team. Even though Blenheim President Ben Grady has only 14 builders “on his books” he is enthusiastic in his role and well-supported. Thank you to both Garry and Ben for hosting me in the South Island.

Since then I have attended Waikato’s AGM presided over by legendary Aussie Warwick Leigh-James and his crew. I will endeavour to attend a few more if time permits.

Nelson President Garry Nott with Chairman Dave Brown

I’d like to take this opportunity to thank the guys who put up their hands for the regional committees and president’s roles. By giving of your time and keeping the faith we are maintaining a strong and vibrant Association.

Keep up the good work!

Dave Brown Chairman Board of Directors

Waikato Fishing Day had a great day out The Waikato-Coromandel members the Coromandel in rs Tou on the Snapper Fishing Safari one member turned not y atel beginning of March. Unfortun to enjoy the day (their up from the Coromandel region the day had perfect misfortune I guess). None the less es attended. The 09ers weather and a great bunch of blok l day to join the 07ers (Auckland) thought it was an idea a great day out fishing and (Waikato) in the Coromandel for n our Fearless Chairman of we were graced with Dave Brow ner in crime at the cold part the Board and Carl Taylor his face. d day out with great My thoughts are that this was a goo than that. blokes, it does not get any better

Whangarei Field Days

It shows the fastest Certified Builder with a two man saw, Northern Board member Mark Dobbs, with a little help from Ben Rickard did it in 30.51s (or something close enough to this), the winners did it in 23 seconds but Mark and I were the fastest in uniform.

Once again the two man saw event was hugely popular, with the winners for the second year running being Bill & George from the Northland Historical Society.

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LBP SKILLS MAINTENANCE POINTS: WE’LL HELP YOU WITH THAT. Keeping up with your LBP Skills Maintenance points quota is simple with PlaceMakers.

We’re running PlaceMakers Skills Maintenance Seminars around the country during the year and our magazine, Under Construction can also contribute to your points requirement.

We know time is money, so spend your time wisely, join us for a Skills Maintenance seminar and sign up for your monthly copy of Under Construction.

UPCOMING SEMINAR DATES BRANCH

DATE

TIME

PlaceMakers Blenheim PlaceMakers Nelson PlaceMakers Motueka PlaceMakers Porirua PlaceMakers Kaiwharawhara, Evans Bay, Seaview

Tuesday, 29 April 2014 Tuesday, 29 April 2014 Wednesday, 30 April 2014 Wednesday, 30 April 2014 Thursday, 1 May 2014

7:00am - 9:00am 5:00pm - 7:00pm 7:00am - 9:00am 5:00pm - 7:00pm 7:00am - 9:00am

PlaceMakers Kapiti PlaceMakers Levin PlaceMakers Palmerston North PlaceMakers Wanganui PlaceMakers Hawera PlaceMakers Ohakune PlaceMakers New Plymouth PlaceMakers Napier PlaceMakers Taupo PlaceMakers Rotorua PlaceMakers Whakatane PlaceMakers Mt Maunganui PlaceMakers Te Kuiti

Thursday, 1 May 2014 Friday, 2 May 2014 Tuesday, 6 May 2014 Tuesday, 6 May 2014 Wednesday, 7 May 2014 Wednesday, 7 May 2014 Friday, 9 May 2014 Monday, 19 May 2014 Monday, 19 May 2014 Tuesday, 20 May 2014 Tuesday, 20 May 2014 Wednesday, 21 May 2014 Wednesday, 21 May 2014

5:00pm - 7:00pm 7:00am - 9:00am 8:00am - 10:00am 5:00pm - 7:00pm 7:00am - 9:00am 5:00pm - 7:00pm 7:00am - 9:00am 7:00am - 9:00am 5:00pm - 7:00pm 7:00am - 9:00am 5:00pm - 7:00pm 7:00am - 9:00am 5:00pm - 7:00pm

Dates and times may change. Contact your local store for more information and to confirm session times.

TOGETHER, WE’RE BUILDING NEW ZEALAND 14 INHOUSE | APRIL/MAY 2014

FEATURE: Concrete Construction Course

CONCRETE CONSTRUCTION COURSE The Cement & Concrete Association of New Zealand (CCANZ) has developed a Concrete Construction Course designed for those responsible for supervising the receipt and placement of fresh concrete on-site - typically this would be the site foreman (or equivalent) and the formwork carpenter. Building apprentices would also find the course invaluable.

The aim of the course is to promote quality concrete construction.

Built around NZS 3109 Concrete Construction, the curriculum for the 2-day classroom based course will meet both industry needs and the relevant NZQA standards.

The course is comprised of the following 5 modules: 1. Introduction to Concrete a. Cement manufacture

The course will be rolled-out on 27-28 May in Auckland, with Wellington and Christchurch dates to be announced. The registration fee is $1,100 +GST. To register for the Auckland course or express your interest in the Wellington or Christchurch courses contact CCANZ (04) 499 7760 or email admin@ccanz.org.nz Queries about the course content can be directed to Alistair Russell (Manager – Structural Performance & Engineering Systems) on (04) 915 0384 or email alistair@ccanz.org.nz

b. Ready mixed concrete production c. Constituent materials d. Applications 2. Properties of Fresh and Hardened Concrete a. Relevant standards b. Fresh & hard concrete tests 3. Reinforcement a. Reinforcement types b. Manufacture c. Handling & installation 4. Formwork a. Requirements of formwork b. Formwork materials, systems and design c. Falsework d. Construction 5. Site Practice a. Handling & placing b. Compaction, finishing & curing c. Hot & cold weather concreting d. Control of surface finishes & cracks The popular CCANZ publication The New Zealand Guide to Concrete Construction is an ideal resource to accompany the course. It can be downloaded in chapters from the CCANZ website – www.ccanz.org.nz/documents.aspx

INHOUSE | APRIL/MAY 2014 15

FEATURE: Why is a written subcontract so important?

WHY IS A WRITTEN SUBCONTRACT SO IMPORTANT? Most licensed builders understand why the building contract between them and their client should be in writing. When disagreements emerge or uncertainty arises, the written building contract tells you what to do. It saves countless hours and dollars debating who is right and who is wrong, and what the next step is.

Members of Certified Builders are even better off because they have access to very sophisticated contracts that cater for most situations and strike a fair balance between the interests of the client and the interests of the builder. And when the regulations to the Building Amendment Act 2013 finally come into force, it will in fact be compulsory to have a formal written building contract for every residential project except for the small jobs (currently defined as those under $20,000).

Whether you are doing a residential, a commercial, or an industrial project, you will have undertaken some serious obligations to your client – the main one being to build the structure the client wants, in accordance with the plans, specifications, building consent and Building Code, for the price that you said you would do it for. In most projects you won’t have the skills and expertise (or the licence) to do all the specialist work that is required – design, plumbing, electrical, block-laying, roofing, specialist cladding or waterproofing, and the like. So you will inevitably subcontract a lot of that work out.

In practice, although it is common for builders to use written building contracts, it is relatively uncommon for them to use written subcontracts. And that seems strange, given that the same issues arise between head contractor and subcontractor, as they do between head contractor and client. Here are some of the reasons why it is just as important to have a good written subcontract as it is to have a good written head contract.

Generally, the bigger the project, the bigger the contract, so that on commercial and industrial jobs you are more likely to be asked to sign a building contract produced

by New Zealand Standards or the New Zealand Institute of Architects. Those contracts are tougher on the builder because they require things such as retentions and bonds, warranties and guarantees, fixed completion dates and liquidated damages for delays, longer defects liability periods, strict requirements for claiming variations, and

16 INHOUSE | APRIL/MAY 2014

ardy

Geoff H al lawyer is a commercian also a director in Auckland ddBu ilders fie rti Ce the on ard. Contact Association Bo 0700 or Geoff on (09)on379 .com geoff@madis hardy to be

ded This article is not intenvice. relied upon as legal ad

independent review of your invoices by the engineer or architect.

But even in the simpler residential projects - whether you have a written contract or not, and whether you know it or not - you will have made some serious promises to your client. That is because in residential projects, both the Building Act and the Consumer Guarantees Act give the homeowner some powerful rights and remedies that form part of your building contract regardless of whether it is written, and (if it is written) regardless of what it says.

The two points to note are - you have promised your client that you will deliver certain things, and you are dependent on your subcontractors to deliver a large proportion of them. Therefore, if your subcontractors haven’t promised you that they will do exactly what you have promised your client, then you are between a rock and a hard place – bound by obligations to the client but having no means of forcing your subcontractors to honour those obligations.

If you don’t have a written subcontract, what are the rules that apply between the head contractor and the subcontractor? Well for start, they will be ambiguous and uncertain. They will be a combination of standard industry practice (whatever that is), the plans, specifications and building consent, and the communications that have passed between you in the lead-up to the subcontractor commencing work. Usually one of you will have defined the subcontractor’s scope of work, and the subcontractor will have given you a price or at least some labour rates, materials costings, and a margin.

But the situation might be worse than that. Many subcontractors have gone to the trouble of getting terms of trade drawn up that they include as fine print at the bottom of their quotes, estimates or invoices. Obviously those terms of trade will be heavily weighted in favour of the subcontractor. If the builder simply accepts those terms without reading or challenging them, then there is every chance that they will form the core terms of the subcontract.

Arrangements with building materials suppliers will be even more out of kilter with what the head contract says, because the large suppliers always take the precaution of getting the builder to sign up to their terms, and not surprisingly the function of those terms is to limit the supplier’s liability rather than expand it.

Remember also that all the consumer protections that homeowners have against the builder under the Building Act and the Consumer Guarantees Act, aren’t given to the builder. What that means is that all homeowners in the country from the most humble to the most powerful

(all the wealthy businessmen, corporate executives, and senior politicians, for example) have far more rights against a sole trader builder, than the sole trader builder has against his subcontractors and suppliers.

That is why it is so critical that your subcontract requires the subcontractor to play his part in ensuring that you satisfy your obligations to your client. It should be a back-to-back arrangement, and all sophisticated written subcontracts already provide for that. In effect, the head contract should be part of the subcontract, and there should be no inconsistency between the two.

The two main subcontracts in common use in New Zealand are the CBANZ subcontract and the Specialist Trade Contractors Federation/Master Builders form (SA-2009).

Both versions are good, and the CBANZ subcontract is currently being revised, to further improve it. Make sure you get in the habit of getting all of your subcontractors to sign one, as a condition of their getting the work. Sooner or later, it will pay dividends.

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INHOUSE | APRIL/MAY 2014 17

ct fe . r e ns s p tio ® i a E line plic Z SI qua d ap T A u EE GIB h st H S m hig EW 10m .7m N ) 2 m .6 on (3 ing de x wi tal fi m n 0m rizo 5 13 r ho fo

WHEN YOU FIND THE IDEAL TILING SUBSTRATE, YOU STICK TO IT. That’s why GIB Aqualine® is NZ’s most preferred tiling substrate for bathrooms and laundries.# The fibreglass in its core gives added strength that easily supports the weight of tiles, while special polymers help prevent moisture penetration. It’s also light and easy to install. Proven in over 500,000 wet area rooms in the last 10 years, GIB Aqualine® is your best insurance against future liability and expensive call-backs.* To find out more, call the GIB® Helpline on 0800 100 442 or visit gib.co.nz/aqualine 18 INHOUSE | APRIL/MAY 2014

#Winstone Wallboards BRANZ Trade Survey, December 2013. *GIB Aqualine® must be installed and maintained strictly in accordance with all requirements detailed in the current GIB Aqualine® Wet Area Systems literature. 10mm GIB Aqualine® is suitable for tiling up to 20kg/m2; 13mm GIB Aqualine® is suitable for tiling up to 32kg/m2. GIB® is a registered trademark.

FEATURE: EMPLOYMENT AND ENVIRONMENTAL LAW

Employment Q&A The below content is by its nature general, and is not intended to be a substitute for legal advice.

TRIAL PERIODS

TAKING OF ANNUAL LEAVE

Q : In February, we employed a labourer on a three month trial. We intended to sign him up to an employment agreement at the end of the trial period if he was suitable. Two months into the trial period, we can see that he is not going to work out – he has been late to work a few times and has a lazy attitude when he is at work. Can we terminate his employment now or do we have to wait until the end of the three month trial period to do so?

Q : We have a couple of guys who think they can just

A : We have written about trial periods in the past, but

A : Again, we have written about this issue in the past, but

we regularly deal with questions such as the above through the CBANZ employment helpline. In answer to your question, you do not have a lawful trial period in place as you have not complied with the mandatory requirements for trial period clauses. Such clauses must be in writing in the employment agreement and must state or be to the effect that: a.

b.

c.

for a specified period (not exceeding 90 days), starting at the beginning of the employee’s employment, the employee is to serve a trial period; and during that period the employer may dismiss the employee; and if the employer does so, the employee is not entitled to bring a personal grievance or other legal proceedings in respect of the dismissal.

In addition, the employment agreement containing the trial period must be signed by both parties, prior to the employee commencing employment. Because you do not have a lawful trial period in place, if you were to simply advise your employment that his employment is terminated (whether that is now or at a later date), he would have grounds to raise a personal grievance and claim unjustified dismissal. You can deal with the lateness and attitude issues, but you have to do so in accordance with the usual employment processes.

We also recommend that you immediately enter into an employment agreement with this employee, although this will not be able to include a trial period given that he is already in your employment. For completeness, we also note that it is unlawful to employ someone for a fixed term of employment if the purpose is to trial them for employment.

take days off as annual leave whenever they feel like it. They don’t ask our permission and usually they tell us that they are taking a day’s annual leave, either the day before the absence or by phoning in on the day of absence. They each have annual leave days owing, but by them taking leave whenever they feel like it they can cause disruption to our business. Is this acceptable?

this is another issue that we regularly deal through the employment helpline.

You must allow an employee to take annual holidays within 12 months after the date on which his or her entitlement to the holidays arose. If the employee elects to do so, you must allow him to take at least 2 weeks of his or her annual holidays entitlement in a continuous period. However, when annual holidays are to be taken is a matter to be agreed between you and your employee and an employee does not have a right to take annual leave whenever he or she feels like it. While you must not unreasonably withhold your consent to an employee’s request to take annual holidays, you are able to take into account the impact on your business of any request for leave and to say no if you have reasonable grounds for doing so.

We recommend that you immediately advise your employees that their current approach to leave is unacceptable and that you and they need to reach agreement about when leave is to be taken (before it is taken). We recommend that you use a request for leave form which employees are required to fill out when applying for leave. In this way, you will have sufficient time to consider leave and Trudy Marshall its potential disruption & Danny Jacobson to your business.

Partners at Employmen Environment Law, Barrist & ters and Solici tors, Tauranga.

Trudy and Danny operate our Em ployment Helpline for CBANZ members: phone: 07 928 0529 They have also previousl a Guide for Employers y produced in the Const ruction Indust which CBANZ can send oury members on request. t to any INHOUSE | APRIL/MAY 2014 19

FEATURE: Beacon Pathway

Under Floors:

insulation vs vapour barriers

By Lois Easton, Beacon Pathway Inc

Using underfloor insulation is no substitute for ground vapour barriers in houses with suspended floors.

With five councils trialling a warrant of fitness for rental houses, and Housing New Zealand also trialling a WOF on 500 state houses, the question of what the basic requirements for a rental house is being much debated.

We were asked recently whether one requirement for rental houses with suspended timber floors should be EITHER a ground vapour barrier OR underfloor insulation.

The argument is that making these an either / or option gives landlords flexibility to achieve a warmer drier house in the way most suited to their situation.

Two different problems The problem is that vapour barriers and underfloor insulation address different parts of a home’s performance – they are solutions for different problems.

compared to the Building Code.

So that 45 litres of moisture/day is not going to be dissipated through ventilation; it will rise up into the house.

An on-ground vapour barrier helps keep a house dry by reducing the amount of external moisture entering the house through the floor. It does not, however, reduce heat loss from the home.

While underfloor insulation is vital for improving indoor temperatures, a vapour barrier is a great (and cheap) step to control moisture. Reducing sources of moisture coming into the house is important because not only does moisture create the conditions for mould and dustmites to thrive, it makes a house harder to heat. A moisture barrier can make a difference to both your perception of warmth and your heating bill.

Underfloor moisture

Insulation is not a vapour barrier

Underfloor insulation helps to keep heat in the house but has little effect on reducing moisture coming from the subfloor space into the house.

About 45 litres of water per day comes out of the ground under a 93 m2 house and 90 litres per day under a 186m2 house. If ground underfloor is assessed in summer it might appear to be very dry, but could still be excessively damp in winter. Also many soils can appear to have dry topsoil, but the subsoil is still wet. Even if a home doesn’t look damp in the subfloor, a vapour barrier is a good option.

Additionally, about 75% of existing houses with suspended floors don’t have enough ventilation when 20 INHOUSE | APRIL/MAY 2014

BRANZ emphasises in their research that the moisture barrier claims on some insulation are not correct and their impact is negligible. Foil, for example, is not effective as a vapour barrier especially if it has perforations.

Even without perforations, and with all joins taped, water vapour will still find a way through or around the foil.

In addition, because ground vapour barriers are at ground level, they lower the vapour pressure. Underfloor insulations sit above the ground, allowing vapour pressure to increase and pushing moisture transfer through

any gaps. (Build, Feb/Mar 2008)

Installing a vapour barrier The simplest, and relatively cheap, way to stop rising damp is to lay black polythene on the ground under a suspended timber floor.

Available from most hardware stores, about $120 will cover the cost of plastic and tape needed for a medium sized house or flat. Fold it out away from you to provide a smooth clean surface. Lap and tape joints, tape around piles, run a few centimetres up the edge of the walls and weigh down with bricks or stones.

While you are installing under-floor insulation, it is most cost effective (at the time and in the long run for that home) to do the vapour barrier as well. Then you get moisture AND temperature wins which bring health benefits.

Don’t underestimate the value of ground vapour barriers in managing moisture in homes to get householders healthy (warm AND dry!)

sulation and Underfloor in our barrier a ground vadpw e this are installe h hhoiluse was Christchurcundation repairs. lifted for fo

The New Zealand Building & Construction Law Conference The New Zealand Building & Construction Law Conference

9 & 10 June 2014 - Amora, Wellington www.conferenz.co.nz/buildinglaw This event offers a thorough insight into the latest changes in the legislation ruling NZ’s building and construction world.

Hot topics: • The Building Amendment Act 2013 • The Construction Contracts Amendment Bill • A thorough review of Construction Contracts

Home Performance Advisor and Home Energy Awareness training Two new training programmes are underway to support you in advising clients on improving their home performance and achieving a warm healthy home.

• Health & safety issues in the building and construction industry • What to expect from the Building (Earthquake-prone Buildings) Amendment Bill Presentations from: • Building Disputes Tribunal

You can choose to be certified as a Home Performance Advisors by taking the level 2 course or choose to upskill by taking the level 1 Certificate in Home Energy Awareness.

• Building Practitioner Board

www.communityenergy.org.nz/training

• Simpson Grierson

• Thomas Dewar Sziranyi Letts • Kensington Swan • Calderglen Associates • Minter Ellison Rudd Watts • Buddle Findlay • DLA Phillip Fox

About Beacon Pathway

• Bell Gully

Beacon Pathway is an Incorporated Society committed to transforming New Zealand’s homes and neighbourhoods through research and demonstration projects that show how to make homes more resource efficient, healthier to live in, adaptable, resilient and affordable.

• Plan A

For further information about Beacon Pathway visit: www.beaconpathway.co.nz.

Plus two optional half-day workshops: A comprehensive review of the new construction contracts forms Facilitator: Andrew Brickell, Chief Engineer, Construction Contracts, MWH New Zealand Necessary steps to take in the case of building & construction workplace injuries Kerry Smith, Partner – Litigation, Buddle Findlay

INHOUSE | APRIL/MAY 2014 21

FEATURE: Bouncing back from recession - safely!

Bouncing back from recession – safely!

5 Steps to improve your business It’s official – the recession is over in New Zealand! So why is cash still tight? And why is profitability down? Here are 5 steps to ease the path to the future!

1. Growth needs funding

Engage fully with your staff and they’ll fully engage with their jobs – you’ll be the better for it, with less headaches, more profit, and happier customers.

Follow these simple steps:

2. Motivating your Staff

a) Have an independent staff survey carried out

3. Recruiting more of the “right sort” of people 4. Systemising your processes

c) Don’t “Dump” – Delegate instead

5. Planning your future

1.

GROWTH NEEDS FUNDING As business picks up you’ll need more equipment, stock, materials, staff, vehicles, and maybe better systems. At the same time you’ll have a bigger debtors ledger, more bad debts, a bigger overdraft and less cash in hand. This is the “growth squeeze” and happens to everybody.

Sometimes it just isn’t possible or sensible to try to grow just relying on cashflow, so you may need to bring in a cash injection. Sources can be the bank, finance houses (UDC, Marac etc), investors, family or friends, or your own private reserves.

But – don’t use capital to fund inefficiency! Before you inject cash – ensure you:

a) Purge your debtors and update your terms of trade to include PPSR registration b) Stop ALL non-vital spending c) Trim all your overheads (remember the 2+2+2+2 rule) d) Performance manage your staff e) Reduce direct costs f) Negotiate extended credit with suppliers

2.

MOTIVATING YOUR STAFF Everybody says “My staff are my greatest asset” but very few act as if they truly believed it!

22 INHOUSE | APRIL/MAY 2014

b) Introduce clear, performance based job descriptions backed by a simple performance appraisal process

d) Hold regular “toolbox” meetings as well as 3 monthly “state of the nation” updates

e) Consider profit share or bonus schemes to lock in key staff

Turn your business and your people’s thinking upside down – draw your organisation chart with the customers at the top and you at the bottom – supporting the whole structure.

That’s reality, after all. You’ll be surprised at the effects.

3.

RECRUITING MORE OF THE “RIGHT SORT” OF PEOPLE

Be clear – work out exactly what you want – not just now, but for the future. Write it up into a performance based job description. Advertise exactly for that role – you’ll get fewer, better applicants the more precise you are. Never interview alone, ask “situation based” questions framed from the job description you’ve worked out, and always, always reference check.

You’ll be surprised at the quality of people you can attract if you go about it the right way.

Once you’ve made your selection – don’t mess it up at the first fence by a poor induction process. Write down what they need to know – (Job Description again) and then train and induct specifically on each topic – use a checklist and get each element signed off by the person who trains the newbie.

4.

SYSTEMISING YOUR PROCESSES Systemising your processes – whether you are an engineer, accountant, signwriter or panel beater, will provide immediate benefits. You’ll reduce errors, increase profits, have happier staff and customers, and create a more valuable business.

We recommend a “simplified Lean” approach – use the 5s model as a starting point. It’s really simple for your staff to understand 1) Sort – go through your place ruthlessly, get rid of all unused, redundant bits and pieces (including your pet private project – yes, that old car or boat must go home!)

2) Set in Order – a place for everything and everything in its place.

3) Shine – major clean up and re-paint, clean floors, walls, roof, lights, benches, vehicles, uniforms

4) Standardise – get your ops manuals up to date, set standards for finish and presentation of jobs, use checklists to ensure everybody is up to scratch

5) Sustain – keep it going into the future – constant improvement – involve your staff.

5.

3) Transfer your knowledge, skills and experience to the business – make it independent of you.

4) Groom your second string staff to be able to fully run the business in your absence. (take a 4 month holiday to prove it)

5) Become a spare part in your own business – choose how involved, reduce your hours, step back from decision making – you can still do the fun bits, though!

Then you are ready for a free choice – stay in or move on at your leisure. The key benefit to you is that the business is running like a Swiss watch, making money, with fewer headaches, and everybody pulling their weight. You’ll like it so much you won’t want to exit after all. www.advantagebusiness.co.nz

PLANNING YOUR FUTURE You will arrive at the future whether you plan it or not, and the once certain thing is that sooner or later you will exit your business. The choice you have is whether you exit vertically or horizontally. My choice would be vertically, with some cash in my pocket!

There are some simple steps to planning that exit or succession, and you can start right now

1) Work out your timeline and personal needs / wants from the business

2) Automate the business systems as much as possible (see 5s above)

INHOUSE | APRIL/MAY 2014 23

Building tomorrow together 16th Annual Certified Builders Conference & Expo - Less than two months until conference!

Don’t miss out on conference, go to www.certified.co.nz/conference and register today!

You can gain as many as ten Skills Maintenance Points just for attending conference, you will get four points for the Factory Tour and six for attending the plenary and workshop sessions during conference. Attendance certificates will be issued post conference.

Conference Opening & Closing: Official Conference Opening – Hon Maurice Williamson MP, Minister for Building and Construction Friday Plenary session 9:10am to 10:00am – Heaphy Rooms Maurice Williamson has been MP for Pakuranga since 1987. He is a former Minister of Research, Science & Technology, Communications, Statistics, Information Technology, Transport, Local Government and Broadcasting. He currently holds the Building and Construction, Land Information, Customs and Statistics portfolios. He holds a Bachelor of Science in Physics & Mathematics and previously worked for Air New Zealand. Minister Williamson is a member of the Pakuranga Rotary Club, of the International Federation of Operations Research Societies and was appointed a Fellow of the NZ Computer Society in 1995.

Official Conference Closing – Shane Jones former Labour List MP, Spokesperson for Building and Construction Saturday Plenary session 2:05pm to 2:45pm – Heaphy Rooms Shane entered Parliament in 2005 as a member of the Labour government and was promoted to Cabinet as Minister of Building and Construction in 2007. Since the 2008 election, Shane has retained his front bench position with the Labour Party in the opposition benches. Shane is spokesperson for Economic Development, Maori Affairs, Forestry, and Associate Finance and Fisheries. During the 1980’s Shane was self-employed, worked in the community, worked in the Ministry for the Environment as an advisor on the Resource Management Act and ended up in the Prime Minister’s Department.

24 INHOUSE | APRIL/MAY 2014

2014

CERTIFIED BUILDERS CO

N FE R E N CE

& EXPO 26, 27 & 28

Plenary Session Speakers & Topics:

June

Confere nce & Ex hib Hamilto ition Centre n

The Psychology of Success: Yeah, right – Nigel Latta Friday Plenary session 10:30am to 11:30am – Heaphy Rooms What makes the difference between winners, and losers? The psychology of success is a topic that generates a lot of hype, and a lot of self help books. Is the answer to simply repeat “I’m a tiger” twenty times each morning? Is it a high protein diet? Is it harnessing the cosmic powers of the universe to call success into your life? Is it maybe beating the ‘self sabotage’ scripts in our heads, which secretly work to keep us down? In this address Nigel will look at the actual science to see if in amongst all the modern hoop-de-doo there may be one or two pieces of information that are actually useful in the real world.

Your Oarsome Adventure – Kevin Biggar Friday Plenary session 11:30am to 12:30pm – Heaphy Rooms If you ever thought that you couldn’t do it Kevin is living proof of whatever the mind can believe, it can achieve. From the comfort of his couch, Kevin dared to dream and set himself some goals that for most of us would be outrageous. Described as adventurous determined and goal driven, his journey proves that he is all that and – and more! You’ll be amazed at his story and come away believing that anything is possible.

Building Law Developments in 2014 – What’s Coming, What’s Changed – Geoff Hardy Friday Plenary session 10:30am to 11:30am – Heaphy Rooms Geoff Hardy, building law expert and senior lawyer at Madison Hardy, presents “Building Law Developments in 2014 – What’s Coming, What’s Changed”. Geoff will cover a variety of topics, including: · The new improved Construction Contracts Act and how to make the most of it · The mandatory information you are going to have to disclose to potential clients · The minimum wording required for compulsory residential building contracts · The new CBANZ small works contract, preliminary services contract, and subcontract · The Building Practitioners Board disciplinary procedure against licensed builders · Retentions and the Government proposals for protecting them · The radical reform of health and safety law, and what it means for you INHOUSE | APRIL/MAY 2014 25

26 INHOUSE | APRIL/MAY 2014

How to Thrive on Stress and Stay Sane in a Crazy and Changing World – Dr Steve Saunders Friday Plenary session 3:30pm to 4:30pm – Heaphy Rooms Basically a ‘Check-Up from the Neck Up’, this talk is a long-time favourite of audiences everywhere. Entertaining and informing on the perils of becoming trapped in the ‘death spiral’, the session provides practical and common sense suggestions for getting on top of your game.

Reference is made to avoiding the ‘CATS’ Syndrome, How to deal with ‘Monkeys of the Mind’ and how not to get caught up with ‘Milking Mice’. At the end of the talk you will see things clearly, be energised, have a better perspective on life and will be inspired to put the balance back into your life (you might also have sore sides from laughter!) You will be reminded that you are here for a good time and not a long time.

Educational Workshop Speakers & Topics: We have lined up an exciting and informative selection of educational workshops for you to choose from. There are three rooms, with four educational workshops in each room from 8:30am and the last workshop concluding just before lunch. Have a look at the below workshops: Heaphy Room 1 – Certified Stream: Trade Secrets, Questions & Answers – Buster Coughtrey, Business Development Manager CBANZ After a very successful members only ToolBox Seminar Series, Buster will be concluding his roadshow with a final presentation at conference where he will be bringing you the most prevalent questions that were asked across the country and he will enlighten you with their answers.

PLANS To BUILD Your Future – Certified Plans Advisory Group, acdarchitecture Limited Learn about the evolution and rationale behind our exciting new initiative - Certified Plans!

Understand the benefits to you as a member and the tools available for your tool box. Meet the architects behind the plan designs and the Advisory Group that had much input and feedback into these designs. Learn of the processes in place to take the home owners enquiry to a member’s reality and take the opportunity to ask any questions you may have.

A two-part workshop on digital marketing and technology: Part 1 - What Mobile Means For Your Business – Ben Smith, Billy Elusive Mobile devices, cloud computing and the internet allows you to run your business remotely and more efficiently than ever before. These same tools also mean your customers find and interact with your business differently now than what they used to.

Part 2 - Mobility is Possibility – Simon Hammond, Vodafone DigitalMobile International mobility trends in the construction industry.

Tips to help your business be more profitable through Mobility today.

“It won’t happen to me” – and other short stories from the construction industry – Jim Rickard & Ben Rickard, CBA Insurances & Builtin NZ Did you know there were 174,000 thefts or burglaries last year, but there were over 250,000 hospital admissions for working age men alone? Come to this session to learn more about the general risk profile faced by builders, their businesses and families. At the end of this workshop you’ll have a better understanding of how to evaluate the risks to your business and the tools available to manage them.

INHOUSE | APRIL/MAY 2014 27

Heaphy Room 2 – Business Stream: Deconstructing dispute – Managing conflict and improving discussions with clients and contractors – Wayne Marriott and Bruce Cottrill, FairWay Resolution Limited Sleepless nights and the frustration of slow progress can be associated with poorly managed conflict and disagreements between the people involved in a construction. Additionally, clients who have an unusually high expectation of the build process will cause you all manner of headaches. FairWay Resolution Limited can help you understand how conflict is constructed and give great tips on how to prevent disputes.

Funding & financing your business in a changing world – Vicki Canestri, ANZ Business Training Manager As a business owner in the building industry in New Zealand, you often feel at the mercy of the weather, the economy and the banks. Whilst we can’t change the weather or strongly influence the economy, we can give you an insight into where the economy is heading and how banks operate with regards to funding your business and also providing funding to your customers.

Benchmarking; Who are the best performing builders? How good are they? How do you get to be that good or better? – Tracy McElroy-Rivett, Consultant - National Business Advisory Group Crowe Horwath Benchmarking measures key financial performance indicators for the construction sector. You can compare your results to the competition and prioritise what you need to improve in order to be a top performer. Crowe Horwath has developed powerful benchmarking software that helps you analyse the numbers and our advisors can help you interpret the information and decide the best course of action.

The Voice Of The Customer – Presenter TBA Insights on what our customers think of builders, issues and tips that make them sad and issues and tips on what makes them happy and likely to refer you to their friends for new work.

Heaphy Room 3 – Building Stream: Timber Frame and Truss technology tools – A future snapshot – Daniel Scheibmair, Senior Engineer MiTek NZ Ltd MiTek offers a presentation in three sections which looks at the way advances in timber Truss and Frame technology may positively impact on builders in the medium term. The presenter takes a helicopter view of the timber framing of the skeleton structure and what happens when nature’s forces are applied to the building. Daniel will briefly cover load paths created by permanent dead and imposed live, wind, snow and earthquake loads.

BIM have you caught it? What is it and why should you care – Nick Clements, Managing Director Building Integration Software Company Nick will talk about the productivity record of the building sector and why improving productivity is important to every business owner and to improving the NZ economy. He will outline the proven relationship between technology adoption and improving productivity. He will explain what Building Information Modelling or BIM is, and demonstrate how this is relevant to the residential builders. This will include an outline of the benefits of its use by builders and what is involved in becoming BIM capable. His talk covers the role the Government expects technology to play in their future plans for the sector.

Hearing Health – Nigel Sallis Audiologist (MNZAS), bloom hearing specialists The hearing health presentation provides an overview of the hearing system highlighting the risks and damage that can occur from ear disorders and noise induced hearing loss. We will cover an overview of the current range of technology available to help and assist hearing impairment and funding available in New Zealand.

28 INHOUSE | APRIL/MAY 2014

Asbestos - the silent killer What is it and how does it affect you?

What types of asbestos are you likely to find in use?

How has it been used in construction products to New Zealand What does it look like and where are you likely to find asbestos?

What are your responsibilities?

Who can remove asbestos and what’s the cost?

How do I protect my team from exposure to asbestos?

Functions: Carters Friday Night Mind Mingler Friday 6:30pm to 9:00pm – Hall B Come join the first ever Mind Mingler Quiz Night kindly brought to you

by Carters. This exciting and mind boggling quiz will have you laughing, scratching your heads and sitting on the edge of your seats all night. You will get 2 jokers that you can assign to 2 rounds which will double your points for those rounds, so start getting your team of 10 together, think of a team name and don’t miss out on this hysterical evening.

All drink, food and transportation is included in the cost to attend $40 + gst p/person.

Rocky Horror Gala Dinner Saturday 7:00pm to Midnight – Heaphy Rooms With a bit of a mind flip... You’re into a time slip... And nothing can ever be the same.

You’re spaced out on sensation. HAH! Like you’re under sedation! Let’s do the time warp again! Don’t miss out on the most outrageous event of the conference – gala dinner. It’s a relaxed affair with much socialising and dancing to the fabulous four-piece band The Monroes. A tantalising three course dinner, drinks and transportation is all included in the cost to attend $100 + gst p/person.

INHOUSE | APRIL/MAY 2014 29

PUT THEM ON THE LINE BOYS.

The Challenge IS ON!!

New Zealand Carpentry Northland Apprentice Challenge 2014 Field Days Because I have been running the toolbox seminar for the whole of New Zealand I have only been able to make one Apprentice Challenge this year in the Western Bay of Plenty region. By the time you read this all of the regional challenges would have finished and we will be gearing up for the final in June at conference. This is going to be big this year with fantastic prizes worth well over $70,000.

Building on last year, this is going to be the biggest Apprentice Challenge we have done, with new Providers taking part, great sponsorship in place and a little twist for the finalists who make it through the Challenge. The finalists will be competing in an Apprentice Race, but more on that later. On top of all this the finalists all get to take out a BMW onto the skid pan at Hampton Downs for a driving experience that they won’t forget.

I would like to thank our sponsors and providers for their commitment to our apprentices. Without you guys, we could not make this the event that it is.

30 INHOUSE | APRIL/MAY 2014

Started on Thursday 27th February, went well with a big effort from Howard and his team from Whangarei region. As always Howard pulled the team together to make sure that the event went well.

See page 13 for more details.

Buster Coughtrey

Membership Development Western Bay Of Plenty had their Manager – North Island first ‘BUILD it’ Trade Show on Thursday 27th February, which I Email: buster@cer tified.co.nz Phone: 0800 CERT IFIED am told went really well. Sorry I (0800 237 843) missed it guys, but I have heard how good it was from a few people now. With luck, I may be able to make the next one. See page 32 for more details.

Waikato had their fishing day on Friday 7th March and those who went had a fantastic time. Great fishing, fantastic banter and good guys to be around (Even the ones from Auckland - just joking - don’t spill their latte). Thanks Warwick for the invite. I look forward to next year. See page 12 for details.

UCOL challenge apprentices left – Matty Hull (finalist), Jeremy Baxter, Manawatu President Jim Moffett, Andrew Condon, Steven Watene

COMPLETED APPRENTICES Left – Tyson Achmit (Acting Deputy Chief Executive UCOL), Finalist Matty Hull and UCOL Tutor David Freebairn

UNITEC New Zealand (FTB) Nicko Sio-Lokam, Bisma n Builders Ltd

Thank you SPONSORS

Thanks to the kind sponsors who gave generously and supported the New Zealand Carpentry Apprentice Challenge 2014:

Principle Sponsors:

Challenge Supporter - Regional Finals:

Challenge Supporters - National Final: WHERE IN NEW ZEALAND IS BUST ER? .

INHOUSE | APRIL/MAY 2014 31

EXCELLENCE THROUGH TRAINING

Bay of Plenty boys kick off the New Zealand Carpentry Apprentice Challenge 2014

Bay of The 2014 NZ Carpentry Apprentice Challenge regional events began on March 22nd, at Ash winner year’s last including Plenty Polytechnic in Tauranga. Five apprentices entered the event, Olsen, & runner-up Kalem Uttinger.

– the This year’s challenge was to construct a two person garden seat in the eight hours allocated a with event the to came five all and prior, days two mail the in plans the received competitors had strategy in mind.

was no As the morning panned out some approaches changed slightly, but come lunchtime there work. quality good producing and progress, clear leader – they were all making good would After fuelling up on a BBQ lunch it was into the second half – the judges felt this 3rd quarter clock the As case. the be to out turned this and emerged, winner the which during stage be the event wound down a bit of pressure came on, and the experience of training and from the 2013 the while rounds final their did judges the and 4pm, shone through. The clock was stopped at drink. ed hard-earn apprentices enjoyed a The decision were made, and the formalities underway. Allan Shaw (WBoP committee member d and previous chair of the CBANZ board) applauded the apprentice’s efforts, and encourage and planning of quality the ged acknowled too them to keep challenging themselves. The judges workmanship. and the The place getters were announced – Frank Anderson from Mono Construction was third, 2014 was for winner region 2013 winner Ash Olsen from Concept Construction was second. The BoP the represent you’ll know we – Kalem done Well Kalem Uttinger (coincidentally employed by Allan).

Bay well at the national finals in June.

James & Thanks to the WBoP CBANZ committee for supplying the BBQ food/drink, and to Paul Polytechnic, Simon Robinson for their judging expertise. Thanks also to the tutors from Bay of Plenty receive. guys these for preparing the venue, and of course supporting the training nationals, The event continues to get increased levels of interest, and we look forward to the 2014 2015. in event better even an now, and of course to

Brian Dillon from BOPP presenting 1st place trophy to Kalem

32 INHOUSE | APRIL/MAY 2014

Bay of Plenty Apprentice Challenge Winner – Kalem Uttinger

INHOUSE | APRIL/MAY 2014 33

EXCELLENCE THROUGH TRAINING EIT Region Winner – Sam Talbot who works for Paul Boaler Builders

New Zealand Carpentry Apprentice Challenge - EIT

Napier Apprentice of the Yea r regional event went really well end of March, our region winner was Sam Talbot who works for Paul Boaler Builders.

The build was an 8 hour tas k constructing an outdoor bench seat; the projec t had some com plex joints involved and was focused more around accuracy and work methods this year rather tha n speed.

We had 8 apprentices com peting. It was a close finish with only 1 point separating place – the second placing first and second went to Mark Gill from Dunne tt Builders, third place was who works for Concept Ma Geoff Eager ster Builders.

Once again the venue at Tum us ITM Napier was great we had a lot of people coming some ver y good apprentice through and ship queries.

Jamie Webster the Napier store manager allocated sta ff members to help us out during the challenge and tha prior and t made for a ver y profession ally run event. A big thanks Walls who even though he goes to Dave left employment at Tumus two weeks prior and now wo Construc tion came back to rks for Stead help out on the day. It’s this sor t of suppor t that makes success where everything the event such a runs smoothly and the app rentices have a great time.

This year Cer tified Builders Hawkes Bay had Alan Whyte (Hawkes Bay President) on Alan was ver y impressed wit site as a judge. h the skill level on display from the EIT apprentices.

Dewalt supplied all the pow er tools needed for the cha llenge which was great as top of the line trades man these tools are the quality and per formed ver y well.

Overall the day was a great success the event gets big ger and bet ter each year. Tha Carpentry team for donatin nks to the EIT g a lot of their time on a Sat urday to come down and hel p out.

Shane Sigglekow Eastern Institute of Techno log

34 INHOUSE | APRIL/MAY 2014

y (EIT )

EXCELLENCE THROUGH TRAINING

try New Zealand hCaallerpnen ge Apprentice C North Tec

the e, congratulations to What a great challeng . up person who thought it ed re, with excellent finish It went really well up he d it an of ud nts could be pro products the contesta d. rio pe e tim a reasonable was achievable within on. preciate special menti us proud and would ap ed pli sup zes pri of Our sponsors really did rth reds of dollars wo nd hu me ho k too nt Each contesta Toolware. kita, PlaceMakers and

by ITM Whangarei, Ma o will be attending s Craig Chatterton wh wa r ne win all erov al The eventu compete against the penses paid, in June to ex all ce, ren nfe co Z the CBAN ntr y Apprentice. for the title of NZ Carpe other regional winners Mark Pearson TUTOR - CARPENTRY

Daniel Munn (Grant Tregidga Builders Ltd, 4th year), Paul Maihi (T W Henwood Builders Ltd, 2nd year), Craig Chatterton (Mitchell Builders, 2nd year), Ben Clotworthy (MJ Quality Builders Ltd, 2nd year)

INHOUSE | APRIL/MAY 2014 35

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At Mitre 10 you’ll find the right people, the right products and all the 36 INHOUSE APRIL/MAY tools you |need to 2014 help your business grow. Visit mitre10.co.nz/trade

FEATURE: Big Changes in Consumer Law

BIG CHANGES IN CONSUMER LAW The Commerce Commission is urging businesses to get up to speed with the changes to the Fair Trading Amendment Act 2013, which was passed into law on 18 December 2013.

Some new provisions in the Act such as compulsory interview powers, product safety powers and management banning orders are now in effect and allow the Commission to be more timely and effective in their actions when the law is broken.

However the majority of the changes will come into effect on 17 June 2014, giving businesses time to understand the new law. These new provisions include: i) Substantiation - where it will be an offence for traders to make unsubstantiated representations without reasonable grounds; ii) Online selling - ensuring traders who sell over the internet make it clear they are traders, and extending consumers rights under the Consumer Guarantees Act to include sales by auction or tender; iii) Uninvited direct sales (formerly door-to-door sales) where consumers will have five days to cancel any uninvited direct sale when approached at home or work by phone or in person

v) Extended warranties - where disclosure is required of the consumer’s rights under the Consumer Guarantees Act and a comparison of these with the benefits of the extended warranty being offered; vi) Layby sales - the number of instalments for a layby sale has increased from two to three and the maximum total price of the purchase has increased from $7,500 to $15,000. There are also new rules about the information a business must disclose to the customer and about cancelling a layby sale. vii) Increased fines – in some cases fines have increased by at least 300% and companies can face fines up to $600,000 per offence A series of fact sheets have already been loaded onto the Commission’s website athttp://www.comcom.govt.nz/fairtrading/fair-trading-act-fact-sheets/ to help businesses and consumers understand the changes.

Laws prohibiting unfair contract terms will come into force in March 2015.

iv) Unsolicited goods and service - businesses won’t be able to demand payment for any goods or services their customer has not requested.

Have you seen the new ACC Critical Risk cards?

Aimed primarily at the Canterbury rebuild, these are a set of 27 cards that cover a wide range of construction issues.

Each card can be used as the basis for a toolbox talk or a quick reference, and contain links to further information if required.

To obtain your copy, please phone

0800 844 657 INHOUSE | APRIL/MAY 2014 37

CERTIFIED BUILDERS

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38 INHOUSE | APRIL/MAY 2014

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INHOUSE | APRIL/MAY 2014 39

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ASSOCIATION NEWS

Annual Business Survey This year’s survey is taking on a new look and the questions streamlined saving you time. Access to live results will be via the Association’s web site. Shortly you will be sent an email to complete the survey; once the survey has closed we will be loading these results into an electronic format where you will see the most change.

Accessing live results The survey will run for August with results posted late September [we will advise when completed].

Grant Florence

Chief Executive

– Cer tified Builde

rs Association

As with past surveys of this type the information is only available to those who submit and contribute to the survey.

Via the Association’s web site follow the survey link. Enter your membership password to gain access into your profile. What this does is keep the information live and accurate, it then allows Business members access to a greater range of business information such as charge out and pay rates. The information is then displayed in several forms allowing you to see where your rates sit compared to others within your region.

This may prove valuable support material when convincing your potential client your charge out rate is at an industry accepted level.

Having an online presence gives you several advantages • No more surveys, you simply update your information when it changes • The information does not become outdated - the survey is “live” • Changes in rates are tracked displayed through the worm chart • Members can selectively drill down to business size and location • As information changes to industry conditions, the results are shown instantly and is relative to your region • Charge out rates, wages, apprentice pay rates, square meter rates, travel charges all relative by region. Christchurch will be classed as its own region.

Just a no

The Adve

te...

rtising Le

vy is invoic ed ness (Plati num) Members in June ea ch year.

This will b e underta ken after Conferen ce this ye ar. to all Busi

Some things to learn Members may have seen a recent segment in a television current affairs programme regarding the plight of a homeowner during a building contract with one of our members. As with all of these types of disputes there are two sides to every story and in this case both parties had previously gone to adjudication undertaken by an experienced adjudicator who had made a reasoned ruling.

Putting this particular issue aside there are many learnings for us to be gained from a situation like this.

These learnings include:It is critical that your customer (homeowner) is clear on their expectations in what the contract includes and what they will receive under that contract.

With the constantly changing laws and regulations for our industry – it is vital that you use a written contract and that it is the most up to date version that is available. These are of course available to all business members on the Association’s web site at a minimal cost.

If the written contract states that a HomeFirst Guarantee is available or required make sure you lodge the application paper work – before the job starts therefore making sure it is available to the Homeowner at the end of the project.

Sometimes during the course of a project you may find yourself with some tension or dispute with your customer, work to sort it out as soon as possible. In addition don’t be reluctant to seek advice from a 3rd party or indeed have a 3rd party present to help with trying to sort the issue.

Once you have got an agreement – confirm it in writing with your customer and check back with them after they have received this to make sure it represents the agreement.

If the agreement requires you to do some work – do the work as soon as possible. It will help take any ‘heat’ out of a dispute.

If you have any queries on these points feel free to contact National Support Office 0800 237 843

g... estin Inter y g lo o owe d SA s h Techn t he U USB in y e g ht a rv s t hou e nt s u t c n e a r ip A n par tic nec tio 2 % of a con e) t ha t 1 Bu s – phon l e ia il r b e mo r s al S ry er or t t n u u (Unive p an C o r com u ro p e in you E a e r t used y igab nym fo n a c ro ht a g was a n) houg

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INHOUSE | APRIL/MAY 2014 41

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FEATURE: Updated guidance for exempt building work

Updated guidance for exempt building work Did you know some plumbing and drainlaying work must be carried out by an “authorised person”, such as a registered certifying plumber or drainlayer, before it can be considered exempt building work? Or that if you are removing a building element such as a chimney, roof or cladding from a building 3 storeys or less, then there is a new exemption which may mean you do not require a building consent.

These changes, were made when Schedule 1 of the Building Act 2004 (the Act) was amended in November 2013.

The Ministry of Business, Innovation and Employment published new guidance in March this year, to help keep you up to date with the changes to Schedule 1.

The guidance concentrates on the 43 exemptions of Schedule 1. It is full of practical examples, with photos, providing information on each of the Schedule 1 exemptions. It clarifies the type of work that is exempt and who can carry out this work.

It’s important builders are aware of building work that is exempt from a building consent. Your clients will often rely on you to advise them what types of work do not need a building consent.

Carrying out building work, that is not exempt, without a building consent, is an offence and can incur a fine up to $200,000 and a further fine of up to $10,000 per day if work continues.

Councils continue to have discretionary powers to grant exemptions for any proposed building work under exemption 2. However, they must be satisfied that the completed work is likely to comply with the Building Code, or there is minimal risk of it endangering people or property. If you want any work to be considered under this exemption, it is important to start discussions early with the local council.

Schedule 1 The scope of building work covered by Schedule 1 does not vary much from the previous version, which was introduced in December 2010. However, it has a new numbering system and has been divided into three parts depending on who can carry out the work: Part 1: Exempted building work lists work that anyone can carry out. It includes exemption 2, formerly Schedule 1(k), which gives territorial and regional authorities the discretion to exempt any building work from requiring a building consent.

Part 2: Sanitary plumbing and drainlaying carried out by person authorised under Plumbers, Gasfitters, and Drainlayers Act 2006.

Part 3: Building work for which design is carried out or reviewed by a chartered professional engineer.

Read the guidance To find out more read the guidance Building work that does not require a building consent Building Act 2004 at www.dbh.govt.nz/bc-no-consent Reminder - Other changes to the Act

A new section, relating to Schedule 1, has been added to the Act, while Schedule 1 itself has been amended to make the exemptions easier to use.

Once the building regulations are amended, builders will need to provide clients with information about their credentials and enter into written contracts for work over a specified amount. These changes will make it easier for builders and homeowners to understand their rights and responsibilities. For a summary of the changes go to http://www.dbh.govt.nz/bcupdate-149

Section 42A of the Act, is a new section which imposes some general conditions and limits on Schedule 1 exemptions and clarifies:

Remember all building work must comply with the Building Code regardless of whether it needs a building consent.

What’s new?

• what type of building work is exempt from requiring a building consent • who can carry it out, • and what other conditions apply.

INHOUSE | APRIL/MAY 2014 43

FEATURE: How to get more visitors to your website

HOW TO GET

MORE VISITORS

TO YOUR WEBSITE

In the last InHouse article you discovered the art of storytelling and how to use your website as a sales tool to convince prospects to choose you as their builder.

But a story is nothing without an audience, so now you will learn how to get more visitors to your website to hear your stories and in turn become customers.

Here is how to get your story heard by people who are actually looking for a builder The single best place to tell your story is your website. It is your most effective marketing tool and can be accessed from anywhere at any time by potential customers. You can tell many stories in different formats such as video, audio, images, infographics, case studies, ebooks. You can comprehensively demonstrate your value, and you can also capture prospects who show interest in your business to market to further at no extra charge.

So it is important to get the people who are looking to build a home to your website.

Here are ways to get prospects to your website: Search Engine Optimization In Tauranga there were x searches for “builder tauranga”. So if your website showed up first in the Organic search results (see screenshot), you are likely to receive at least 37% of that search traffic, an estimated x number of people who would then hear your story.

Google Adwords Of those same X number of people who searched for “builder tauranga”, they were also served ads at the top and the side. You only pay when a person clicks on one of those ads. So you are paying approximately $1 for a visitor to come to your website and consume your story, a visitor who may be prepared to pay $400,000 on a new home build!

Online Partnerships If your building business has agreements or relationships with other suppliers such as plumbers, drainlayers, roofers, kitchen suppliers (the list goes on), then you should promote

44 INHOUSE | APRIL/MAY 2014

Ben Smith

Ben Smi th (aka Billy Elusiv) is a digital marketing spec ialist working with Cer tified Buil ders to offer digital marketin services to its members, g including website deve ent & online advertising suchlopm as Google Adwords.

your website and services on their website and vice versa, so that you can get related traffic to your website. At the very least an exchange of links will help both businesses towards better search engine optimization and higher rankings on Google for search terms. So a person who is looking for a plumber may also be looking for a renovations builder at the same time. They can find you through the link from the plumbers website.

Email Marketing This is the single most effective way to get prospects to return to your website again and again, to nurture them along the sales process and build a relationship and trust with them. Once you have the prospects email address, you are in control of delivering the marketing stories to them, which stories you send them, and how often you send it to them. Compare that to simply hoping a prospect will come back to your website again one day to be exposed to your message, brand and business, or having to pay for advertising to get them back again. This is the reason email marketing is so powerful and cost effective.

Social Media Telling your story on social media has the by-product of people wanting to hear more and learn more by going to your website. If you do social media correctly, you not only maintain relationships with existing customers and get better chances of client satisfaction and referrals, but you will also reach potential customers who want to hear your story organically.

You also have options to advertise to highly targeted demographic and geographic prospects, driving them back to your website to consume your stories and begin that relationship and sales process.

Also, you can target specific adverts only to those who have already been to your website, so you can remind them of your business and encourage them back to your website again. The more touchpoints you have and the more times you engage with your potential customer, the more trust and relationship you will develop, leading to winning a contract.

out there and find out what the options are for a build in maybe two years time.

Offline Marketing

You then also have the ability to show ads on facebook, or Youtube or many other websites to any one of the 10 hot prospects, the 50 mild prospects or the 500 people who came via the newspaper ad, for a fraction of the cost.

Most building companies are proficient at running newspaper, print or TV adverts to generate awareness and encourage prospects to visit their showhome or their website. The problem is that they are not getting enough of a Return On Investment on these expensive forms of advertising, because they are firstly not telling good stories on their website, and secondly they are not capturing prospects to be able to market to again for free.

If you can capture those 10 hot prospect’s email addresses who are seriously interested, then you are able to market to them and give them the information they are searching for, nurturing them through the sales process, delivering value and receiving trust, all for the price of free from then on.

If you do not have a system in place to capture their email address or track their visit, then you can only hope some of those 20 hot prospects come back, or pay another $1000 for a newspaper advert to get some more prospects to your website.

Can you now see the power of online marketing and email?

Let me say that again. Most building companies who run offline advertising campaigns are not capturing prospects so that they can reduce their advertising costs and increase their ROI. Scenario You spend $1000 on a Saturday newspaper advert that generates 500 people to your website. Of those, 10 people may be serious buyers looking to build a new home sooner rather than later. Another 50 are starting to put their feelers

And can you see how having an effective online marketing strategy that backs up and complements offline advertising gives you a much better return on investment?

If you are interested in getting prospects to your website, in telling better stories and getting a better return on your investment in advertising, then contact us.

For website development, visit www.websites.certified.co.nz For online advertising services, visit www.billyelusiv.com

INHOUSE | APRIL/MAY 2014 45

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FEATURE: Benchmark... and grow!!

BENCHMARK...

AND GROW!!

Is your construction firm seeing the widely reported upturn in business growth?

What are you doing to prepare your business for the opportunities to come?

Are you and your teams already starting to struggle with the increased costs and workload?

Everyone, it seems, is talking about the upswing in the economy. With the latest reports from Statistics NZ showing new build house consents up by 28% and a similar figure for alterations, the house construction sector appears to be leading the charge. However, as many of you are probably finding out, rapid growth has as many pitfalls as benefits!

The key to managing your business in this environment is working on the right things to make the most of the opportunities - without sinking under the extra work and complexity.

How do you do this? A tried and tested approach is to analyse the key measures of performance in your business (every business usually has a key few measures that really matter) and compare these to benchmarks (the average or median measures of performance over a group). This allows you to understand your performance relative to the marketplace.

Let’s look at how this works. For many of you, getting paid on time by your customers is one of the most important things in your business – if it isn’t a priority, then it should be. This doesn’t just mean you can pay your people on time without borrowing from the bank, or trying to hold off paying your suppliers, but most importantly - you avoid stress and you can put your energy which it should go – into finding and managing the work. But how do you know what are reasonable terms and how hard do you push this with your customers? Benchmarking can be a huge help by showing you the average for similar sized businesses across New Zealand. It is much easier to explain your terms to your customers, (and ask them to stick to them), having full confidence that you are being competitive and fair at the same time.

With reliable benchmarks, chances are you can also find out other useful things – like what are the top performers achieving and what are they doing differently? How did they progress from start-up through to a high-performing business? How many staff do they have? How do they operate day-to- day?

Simply put, benchmarking from a reliable and knowledgeable source stops you reinventing the wheel by seeing what other businesses are achieving and setting your sights on learning from the top performers in the game.

Crowe Horwath is one of NZ’s leading business advisory and accounting firm to the NZ Construction sector, with 21 offices across the country. The author, Tracy McElroy, is exowner of a London-based Kiwi Construction firm and is a member of the Crowe Horwath business performance team.

For more information you can contact your local Crowe Horwath office on 0800 494569 or go to www.crowehorwath.co.nz.

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INHOUSE | APRIL/MAY 2014 47

HOMEFIRST BUILDERS GUARANTEE

APPLY FOR THE GUARANTEE EVERY TIME YOU SIGN A NEW CONTRACT CERTIFIED BUILDERS MUST OFFER THEIR CLIENTS A HOMEFIRST 10 YEAR GUARANTEE FOR NEW HOMES. THE BEST TIME TO DO THIS IS WHEN YOU SIGN THE CONTR ACT. IT’S ALSO RECOMMENDED FOR ALT

ERATIONS AND ADDITIONS.

THERE ARE TWO WAYS TO APPLY:

OLD SCHOOL – Good old fashione

d paper

Fill out the guarantee application book let at the same time you fill out your cont ract.

Have your clients sign it at the same time too.

Booklets can be downloaded or ordered free through the Certified Builders web site members’ section, or by contacting Milli e T at Support Office (0800 237 843, millie.t@certified.co.nz).

NEW SCHOOL – Online Complete the application online and then Visit www.builtin.co.nz/login and use

print it out so your clients can sign it.

your CB login details.

Whichever way you apply, you’ll also need to pay the guarantee fee and send us a few supporting documents.

The guarantee is a valued benefit your clients get when they use a Certified Builder. It’s not automatic and must be applied for before construction starts. There is no guarantee in place until Builtin issues the Certificate of Guarantee to you and your client.

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48 INHOUSE | APRIL/MAY 2014

MESSAGE FROM THE CHIEF

The next 12 MONTHS LOOK PLEASING It would appear that building momentum has continued to show the strong growth that seemed to start in the 4th quarter last year. This includes pleasing activity across many provincial regions outside the well publicized levels in Christchurch and Auckland. With consumer confidence at a 7 year high and Business Confidence at a 20 year high – this next 12 months look pleasing.

Regrettably the Association featured in a recent edition of the national television programme of Campbell Live. Often is only learning that comes out of this type of exposure (maybe ask Fonterra?) and we suggest you have a re read of the brief section we have included in this edition of InHouse on some of the learning gained. Dave Brown our Chairman has also made some comment in his introduction section as well.

We continued to be very involved with a range of workgroups with MBIE on working through the details of forthcoming regulation changes and sector improvement projects. This includes the Consumer Protection regulations from the Building Amendment Bill #4, which we have highlighted in the past and will impact many of us. These will not come effective for a few months yet – but we will provide plenty of notice to all members and tools to help you with these changes.

The new Occupancy Health & Safety Reform Bill is starting to move through the law making process with the new Bill becoming effective from 1st April 2015. This will have an impact on many of us in our responsibilities as employers as will the substantial maximum fines for both companies and “officers/Directors” of Companies - that accompany the prospective legislation. Watch this space!

Grant Florence – Chief Executive I am excited on the work we are starting to do with Fairway Consulting (the old Dispute Resolution Service) around providing us all some education and help on tolls and processes that will help with avoiding conflicts and disputes during and after the building projects.

Fairway are bringing a huge amount of experience and ideas on how we can shape our education, templates and services to ensure we continue to ‘delight’ our homeowner customers so they provide plenty of references for us for future work and are seen as the most qualified and professional builders in New Zealand.

Fairway are presenting at Conference which will be very valuable I am sure.

The regional events of the NZ Carpentry Apprentice Challenge are currently going on and entry numbers are at an all time high, including in some regions that have not held them in the past – from reports there is some excellent results from these regional events and will no doubt ‘up the competition pressure’ at the national finals to be held at Conference.

So plenty on the horizon with good work levels, AGM and Conference looming and the launch of our new service “Certified Plans” starting into its countdown!!

INHOUSE | APRIL/MAY 2014 49

Spend Over $800 ) GST) on Bradford Acoustic Gold Insulation and Receive a Free*: excl

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2014 2. To be eligible for the reward, a qualifying customer must, during the promotion period, order and be invoiced for over $800 (excluding GST) on any Bradford *TomTom Via280 Terms and Conditions : 1. The promotion period starts on 1 May 2014 and ends on 31 May 2014.

Acoustic Gold Insulation products from Carters. 3. A qualifying customer will receive one free TomTom Via280 plus a carry case. 4. Promotion is open to trade account holders only. 5. Entry is automatic on invoices raised for trade account holders. 6. Qualifiers are based on invoice date not order date. 7. To be eligible for the reward, qualifying customers must meet Carters’ Standard Credit Criteria and have complied with Carters’ Standard Terms and Conditions of Sale, both during the promotion period and up until the reward is received.

8. A maximum of one reward per customer. 9. The actual reward may differ slightly from that pictured. 10. Limited stocks of reward available, while stocks last. 11. An alternative reward may be offered at the discretion of Carters. 12. The reward cannot be substituted for cash or alternatives. 13. The manufacturer of this reward is not associated with this promotion. 14. Offer not valid with any other promotion running concurrently. 15. Staff of Carter Holt Harvey Limited are ineligible to qualify. 16. The reward is distributed after the promotion is completed and the applicable account is paid. 17. Carters reserves the right to amend, terminate or suspend any aspect of the promotion (including the reward) at any time in its sole discretion.

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