October November 2016

The off icial magazine of the New Zealand Certif ied Builders Association

October/November 2016 — Visibility, Clarity, and an Ongoing Conversation Pg 39

Health and safety: What’s the difference between “hazard” and “risk” Pg 47

Centrespread —

One Builder One Architect One Client Pg 24

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2

Message from the Chair

1

From the Operations Desk

3

Around the Regions

5

Feature: Toolbox Seminars

11

Certified Plans

12

Feature: Navigating the course ahead

14

Feature: New Halo Enhancements

16

Feature: Countdown is on for construction sector to get its head around new rules

20

Feature: How does the risk of fraud affect your business?

21

Feature: Use licensed people on the job

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23

Tech Tips – Websites

31

ITAB

32

AST Trust

35

Feature: Visibility, Clarity, and an Ongoing Conversation

39

Feature: More Reasons to Avoid Retentions

42

Feature: The hidden costs of deferred maintenance

44

Feature: Health and safety: What’s the difference between “hazard” and “risk”

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Message from the Chief Executive

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I can’t believe how fast this year is going and how busy I am in this new role. As you will see, we have taken on a new Independent Director, Reneé Jaine. I think all of us on the Board really enjoyed this process of finding someone who is not directly related to the building industry... here were four ‘Chippies’ interviewing three people with high level corporate skills and qualifications!

Thanks also to Gary Guernier for helping in this decision process.

I think it is going to be very exciting having Reneé on the Board. She is going to be a great asset for the Association and I look forward to working with her. I am sure she is going to challenge us and put us outside of our comfort zone.

It’s great to see that we now have a building consent for our new National Support Office building. It has been a challenge getting to this point but I think we are not far away from getting underway with our NZCB builders, Anthony & Mark from Hawes Building Solutions, and Craig Henderson from Jigsaw as our Project Manager.

It was good to meet up with these guys recently and get a better understanding of the job in the unfamiliar position of being a client. I have no doubt these guys will do a good job.

Grant kicked off the new Zone meetings with the Presidents recently. The intention is that these smaller groups that are meeting more often will be more productive than our previous two Presidents meetings a year. I look forward to the feedback on these from those that attend.

I was fortunate enough to be at the recent Auckland Home Show, on the NZCB stand, thanks to the Auckland Committee. I was pleasantly surprised how well the public perception of NZCB, and its new branding is being received up there. We are making good progress with the public’s knowledge of NZCB but there is still a lot more to do.

ONE BUILDER ONE ARCHITECT ONE CLIENT

Keep up the good work!

Regards, Brent

Brent Chatterton 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 ISSN 2463-3305 www.nzcb.nz ISSN 2463-3305 1

ASSOCIATION NEWS —

IN THIS ISSUE

I hope this edition of ‘Inhouse’ finds everyone busy and making good profits in their business because, if there is one thing that is guaranteed in this industry, it’s that it is always boom or bust, so we need to make sure we put some profits away for a rainy day!

GIB EzyBrace® 2016 Update GIB EzyBrace® Systems have been updated to offer improved design flexibility and further simplification.

— NEW: GIB EzyBrace® Bracing Design Software is more intuitive and even easier to operate than previous software versions.

— NEW: GIB® Bracing Element GS2-NOM allows internal walls lined with GIB® plasterboard when installed as per the GIB® Site Guide to contributed towards bracing resistance.

— UPDATED: Openings in Bracing Elements and Ceiling Diaphragms including guidance on fireplace flues and range hoods.

Visit gib.co.nz/ezybrace to download free GIB EzyBrace® 2016 Systems software, CAD details and literature or contact the GIB® Helpline 0800 100 442.

Appraisal No.928 [2016]

ASSOCIATION NEWS —

FROM THE OPERATIONS DESK LBP loses license – but not for building work With the scheme now well bedded in, the Building Practitioners Board consider practitioners should have a pretty good handle on how the system works and the obligations of those who operate within it. Two simple rules really, act in a professional manner and fill in a Record of Works. But is it that simple?

I was also curious to know, if there was no client involved, how did this land in front of the Building Practitioners Board? It was the system looking after itself, another LBP felt Cecil’s actions were unjust and had the potential to reflect on them as an LBP, and so laid a complaint with the Board. I am interested to see just how far the envelop will be pushed regarding LBP’s actions not involving building work. NZCB continues to question the Ministry on publishing a code of conduct to guide practitioners on matters involving behaviour.

The last issue of Codewords [issue 73] had me sitting up asking questions, how can someone be stripped of their license, with no mention of poor building work or a client making a claim to the Building Practitioners Board?

With the Building Practitioners Board now taking a tougher line they are publishing names of practitioners who have been disciplined, with this door now open NZCB are working to source this information and overlay with our membership data.

Let me fill you in on the details, Cecil Sinclair a Wairarapa builder operating out of Featherston was convicted in the Masterton District Court of 91 counts of tax evasion spanning a ten-year period. When tax penalties had been accounted for Cecil had racked up $170,000.00 worth of evasion.

So let’s keep those string lines tight and our actions professional in all areas of building work.

Things are cranking up in the house of the Building Practitioners Board.

So what has this got to do with a builder’s ability to operate as an LBP? To find out I spoke with LBP Registrar Paul Hobbs. Paul pointed me to a section within the Building Act – Regulation of Building Practitioners and clause 317 grounds for discipline of licensed building practitioners. There are many grounds for discipline, including the requirement of the LBP to act in a fit and proper manner. The test for this is quite high and taken very seriously, in this instance it sat at a level of a prosecution in the courts. Cecil as a practitioner had the potential to bring the LBP system into disrepute, in other words lowering the bar for all LBP’s involved. If I can take you back to “an LBP needs to act in a professional manner”, we need to remind ourselves that this is both on and off the building site. When homeowners put trust in LBP’s to manage construction budgets, operate within their homes around their families and count on the practitioner to do what they say they are going to do, then there is a requirement for that LBP to be trustworthy and fit and proper as a human being and not show disregard for the law of the land.

Jason McClintock Operations Manager

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ASSOCIATION NEWS —

BUILDING INSITES PROGRAMME Concerns of build quality have become publicly evident with Councils in the media claiming higher rates of failed building inspections. A recent study found multiple reasons for this, from Councils changing policy on procedures to poorly prepared sets of plans, human error during the consenting and the building process. About this time BRANZ and New Zealand Certified Builders entered into discussions on build quality and basic construction principles not cutting through to building sites.

Industry Looking After Industry: In partnership with BRANZ, NZCB has stepped into the space of build quality during the construction phase by taking the message of best practice on construction details that are regularly built incorrectly. The programme has received support from BCA’s guiding the Association via their inspection reporting.

Open to all builders, the sessions will be short and sharp and include training on relevant regulations, theory and construction best practice. The 20-30 minute sessions include demonstrations of construction details within several display modules, inside our purpose built trailers.

In the short term the insite sessions will be piloted in Auckland and the Waikato, but NZCB sees a real need for this initiative to grow and be taken across the country.

Warwick Leigh-James building his demonstration modules to take to site.

Would you like Dave Brown (Auckland) or Warwick Leigh-James (Waikato) to touch down on your site? Contact Julie at National Support Office to arrange a suitable time on 0800 237 843.

BRANZ Technical Helpline 0800 80 80 85

TAUPO PATHWAYS CAREER DAY 1800 students visited the Taupo Pathways Career Day in August in 5 hours and some came back with their parents later in the afternoon. We had four ITAB apprentices man the stand to talk to the students. Thanks to Kieron Sloane, Michael Ross, John Wall (Building Central) and Kevin Sun (Wade Construction).

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AUCKLAND HOMESHOW 7–11 SEPTEMBER 2016 Again we have a team to thank:

The Committee of NZCB Auckland excelled themselves yet again this year and completed a fantastic brand awareness campaign at the Auckland Homeshow – five days of great promotion of the brand with the new NZCB logo, the opportunity to educate the public on our point of difference and how to locate a builder in your area. We have noticed over the four years we have been at the Homeshow, that the question ‘what is the difference between you and Master Builders’ is being asked less and less – NZCB members are of course all trade qualified.

• To the Auckland Committee Member team who worked tirelessly to promote the NZCB brand –Stavros Evangelidakis, Patrick Donoghue, Peter Headland, Craig Eriksen, Nick Farrelly, Grant Boylan, Carol Frisby-Shilton (we cannot forget Rob Shilton who is always there to assist); • Huge thanks to Carl Taylor, Richard Seegers, Jimmy Liu, and Shane Ririnui – we hope you enjoyed your time on our stand – even though on some shifts it was rather cold!; • To Brent Chatterton, Chairman of the Board for your support on Wednesday – all the way from Christchurch – huge thanks;

It is a big commitment for the Auckland Committee financially and personally (the majority run their own businesses so take time off work) – 120 hours of donated time during the five days of the Homeshow, not including the preparation and breakdown. New balloons, new pens, new signage and shirts for those not on the committee who helped out. We do realise however that we simply have to be at the event – it is an excellent opportunity to promote not just the NZCB brand but also the new Halo 10 year guarantee!

• Bella Kitchens – Simon Diprose – another lovely cabinet to add to our collection. Dave’s television looked fabulous on it – thanks for the use of it!; • Thanks to those of you who sent in photos again this year – we have quite a collection now but always happy to add more. Please remember though these must be in the highest resolution possible; Thank you so much to all involved for making our fourth year at the Homeshow another roaring success.

Carol Frisby-Shilton Auckland Regional Co-Ordinator

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ASSOCIATION NEWS —

AROUND THE REGIONS

ASSOCIATION NEWS —

BUILDNELSON An expo for building professionals

AROUND THE REGIONS

Build Nelson Trade Show was held on September 15th 2016 and was a very successful event. With a large turnout and a wide range of exhibitors the atmosphere in the place was buzzing! ITM Nelson along with support from our sponsors helped the team put this event together and the results were fantastic.

Operating from a provincial town, local builders don’t often get the opportunity to see such a large variety of products and services in one location. Exhibitors commented that this year’s event was top notch and those who came through the doors were really interested in them and information they had to share.

There were amazing prizes, a couple of the favourites being a Paslode Nail Gun and a Weber BBQ which were kindly donated by exhibitors. Everyone came away with something, whether it was a bag filled with goodies and information or a prize from the main draw.

The exhibitors really did themselves proud! Each stand was so well set up and had so much to offer the participants as well as some running demonstrations during the evening. This year we also had a Master of Ceremonies for the duration of the event and everything combined made 2016 Build Nelson a real success!

CHARITY BOXING EVENT On 20th August 2016 BOI/Far North Committee held their biennial Charity Boxing Event and raised $25,454.00 for a local charity, Bald Angels.

NZCB Nelson Committee are grateful to the merchants who have supported Build Nelson from its inception; ITM, Carters, Mitre 10 Trade, PlaceMakers and Nelson Pine support the event by promoting to their builders as well as donating prizes for the main draw and product for the goodie bags. The Committee agree the concept makes a positive contribution to the building industry in the Nelson Bays region and with the kind of positive feedback from merchants, builders and exhibitors, they will continue to host this valuable show case in years to come.

There were 12 bouts including one between Mark Todd, president of BOI/Far North and Rapata McLean, Mark won by unanimous decision. Many local businesses either donated or gave their services at heavily discounted rates to make the maximum contribution to the selected charity. The night was extremely successful and we look forward to the next event in 2018.

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Brent Chatterton

Mike Craig

Mark Dobbs

I started my own company, Chatterton Builders, in 1998. I am now off the tools running it with my wife Claire, employing 20 staff, plus contract staff. We build and design residential homes, specialising in thermally efficient houses, including passive house construction.

I live in Waianae with my partner Maria and have 3 children.

After completing my carpentry apprenticeship in 1992, I worked and travelled for a year in Europe before returning to work in my dad’s construction company where I worked my way up to company supervisor.

I started on the Canterbury committee and have been active there for the past 9 years before becoming a Board member 4 years ago. The previous 2 years I have been Vice Chairman.

I have 10 employees at the moment and have been building for 36 years. Was trained in Stratford, Taranaki and moved to the Kapiti Coast in 1984. My career has entailed building light commercials, concrete reservoirs, major concrete construction and top end architectural housing.

I have been self-employed for 31 years and started Mike Craig Builders Limited in 2003.

I am a foundation member of NZCB, have been three years on NZCB’s Board and reelected for two more years May 2016.

Have also started a new company called Qbuild with another member of NZCB, just to help build a stronger company in today’s market.

I am married to my wife of 20 years Tracey and have two great kids, Ashlee 20 and Matt 16.

I started my own building company, md construction in 1998 working on mainly alterations/additions, residential new builds and light commercial. I joined NZCB in 2001 and was elected as Whangarei president from 2004 – 2008 I was elected to the NZCB board of directors in 2008, a position I still hold today.

I’m passionate about the building industry and get great satisfaction serving our members on our national Board.

Dave Whitehead I started in the industry in 1993, working predominately in residential new builds and alterations on the Hibiscus Coast.

Following a 3-year OE, started Lifebuilt Construction/Lifebuilt Joinery (now trading as Bella Kitchens & Cabinetry) in 2007.

Based in Silverdale we currently have a staff of 20 working throughout the Auckland region. After joining NZCB in 2009, I have worked on the Auckland Committee and served as interim President for Auckland, and have been on the Board of Directors since 2012.

I am married to Cathie and have two daughters Izzie (6) and Amelia (4) and I enjoy fishing, diving and rugby.

Gary Guernier – Additional Director I have been associated with the Building Industry for 25 years, holding senior executive positions within Fletcher Building and then JV Partner of PlaceMakers Tauranga and Mount Maunganui.

Reneé Jaine – Additional Director

Subsequently Chief Executive of Carters then Joint owner/MD of bathroomware manufacturer Athena Products Ltd. More recently I spent 3 years in China as Executive Chairman/President of a Private Equity controlled Chinese publicly listed company – producing PET bottles for the PRC domestic market.

My 8 years’ experience includes behaviourchange consulting, research analysis, communications and lecturing, both in New Zealand and the Pacific.

Currently hold a number of Independent Directorships including Chairman of ITM NZ.

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I was appointed to the NZCB Board in August 2016, to bring a fresh perspective from outside the industry.

I’m also a lifelong nerd, with a Master’s in Behavioural Policy from the London School of Economics. I now live in Wellington with my husband Mike, where I am establishing the New Zealand branch of #ogilvychange.

I look forward to meeting more of you, and contributing to the direction of NZCB.

ASSOCIATION NEWS —

NZCB BOARD

ASSOCIATION NEWS —

COMPANY OWNED – NO ENTITLEMENT Defence:

I stumbled across an interesting leaky building case I’d like to share with you. After an interesting turn of events I think you’ll agree there are lessons to be learnt when doing business through a company identity.

The builder chose not to take part in the proceedings nor did he issue a statement in his defence.

As the findings were not challenged the witnesses were excused from attending the hearing and their witness statements were admitted as evidence.

In 2008 Mr Plumber bought a property (dwelling), and subsequently transferred it to NZ Domaine Investments Limited (NZDI), of which Mr Plumber is the sole director and shareholder. After the transfer of ownership, the property was rented out. In 2010 the tenants of the property brought weathertightness issues to the attention of Mr Plummer who lodged a claim with the Weathertight Home Resolution Service.

A survey was done to quantify the extent of damage and remediation work was subsequently carried out, with repairs to the deck area yet to be completed at time of hearing.

In summary, there was clear evidence of poor building work, and the amount of loss which was accurately submitted and accepted by the adjudicator. With no challenge or evidence to suggest otherwise you would think case closed and full amount of loss awarded, right?

One more test to apply: Does Mr Plummer have standing as a claimant and should general damages be awarded? The adjudicator determined Mr Plummer is not an owner of the property and therefor does not have rights to a claim. General damages are not available to limited liability companies. The Weathertight Homes Resolution Services Act 2006 (the Act) specifies that in order to be eligible, a claimant must own the dwellinghouse to which the claim relates. The registered owner of the property is in fact New Zealand Domaine Limited.

Claim: Mr Plumber and NZDI bought a claim against the builder to recover costs of remediation to date, costs to deck work yet to have been undertaken, lost rent, interest and general damages. A total of $351,540.42 Evidence of negligence: The surveyor who undertook the investigation of damaged tabled the following areas of poor work.

Lesson learnt:

• A downpipe outlet discharging directly onto the balcony deck

During proceedings there was a claim that Mr Plumber had rights to a claim as a trustee, this was quickly dismissed.

However, the adjudicator did have this to say “The difference between a Trust and a company is that a company has a separate legal personality. A trustee may own a dwellinghouse in that capacity, however they are the registered owner. Had Mr Plummer in fact owned the house in trust, he would have no difficulty establishing that he is the owner for the purposes of the Act”.

• Incorrectly installed deck tile fitting

Intended outcome:

The balcony defects included

In a twist of law Mr Plumber did get an outcome he was pursuing when the claim was then subrogated to Tauranga City Council who pursued the claim against the builder on behalf of Mr Plumber.

The roof defects included • Lack of clearance from claddings • Poorly constructed flashing details at the roof parapet to wall junctions • An inadequately formed rainwater scupper-outlet

• Poor positioning and construction of scupper outlets and overflows • Poorly constructed junction details • Insufficient fall

Please be in contact with Geoff Hardy if you require clarification on your company’s ownership of a dwelling.

• Lack of suitable stand up backing support for the liquid– applied membrane

Email me at jason@nzcb.nz if you would like to view the full proceedings.

• Insufficient clearance allowance from the back of cladding and the apartment floor

Regards Jason McClintock Operations Manager

The cladding defects included • Unflashed junctions • Unprimed timber mouldings and scribers • A lack of sealing • Non-compliant building wrap installation.

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ASSOCIATION NEWS —

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Talk to us today about how partnering with CARTERS can make the business of building easier for you.



GAIN MAINTENANCE SKILL POINTS Using the InHouse covers shown, tick inside the white circle which of these you have read to gain Maintenance skill points for your Building Practitioner licence.

Keep this page along with other articles, seminars, flyers of training nights as evidence of your attendance. This is the responsibility of the LBP and not the training provider.

LPB SKILLS MAINTENANCE RECORD OF ACTIVITY Hours spent reading InHouse August/September 2016

NEW ZEALAND’S MOST QUALIFIED BUILDERS

OCTOBER/NOVEMBER 2015

Points claimed: (1 hour – 1 point)

NEW ZEALAND’S MOST QUALIFIED BUILDERS

DECEMBER/JANUARY 2016

NEW ZEALAND’S MOST QUALIFIED BUILDERS

FEBRUARY/MARCH 2016

InHouse InHouse InHouse THE OFFICIAL MAGAZINE OF CERTIFIED BUILDERS ASSOCIATION OF NEW ZEALAND

THE OFFICIAL MAGAZINE OF CERTIFIED BUILDERS ASSOCIATION OF NEW ZEALAND

80’S REVIVAL

MERRY CHRISTMAS

PAGE 24

Have a safe break and a happy New Year!

THE OFFICIAL MAGAZINE OF CERTIFIED BUILDERS ASSOCIATION OF NEW ZEALAND

The off icial magazine of the New Zealand Certif ied Builders Association

The off icial magazine of the New Zealand Certif ied Builders Association

The off icial magazine of the New Zealand Certif ied Builders Association

April/May 2016 —

June/July 2016 —

August/September 2016 —

Success Through Change Conference Pg 10

MANY TALES TO TELL.

NZCB Partner with Houzz Pg 36

Centrespread —

NZ Carpentry Apprentice Challenge Regional Winners

New Rules Around Retentions Pg 34

Building Product Issues Pg 48

Centrespread —

NZ Certified Builders Re-brand

Powertool Safety Pg 8

Halo Benefits for the Homeowner Pg 17

Centrespread —

Warmth on the Kapiti Coast

Pg 24

Pg 24

Pg 24

PAGE 26

Pg 28

HEALTH AND SAFETY TOOLKIT

LBP SKILLS MAINTENANCE CHANGES

WHICH IS THE RIGHT PAYROLL FOR ME?

REVERE MAGAZINE

PAGE 8

PAGE 12

PAGE 22

PAGE 43

CBI22552 Inhouse - October/November_FA.indd 1

REWARDING GREAT H & S BEHAVIOUR

A TRIP TO VANUATU

DOES YOUR APPRENTICE HAVE WHAT IT TAKES?

FREE DISPLAY PAGES FOR ALL BUSINESS MEMBERS

CHANGES TO HOME GUARANTEE INSURANCES

SUCCESS THROUGH CHANGE CONFERENCE 2016

COMPLETED CERTIFIED PLAN BUILDS

NEW ASBESTOS RULES

PAGE 16

PAGE 20

PAGE 24

PAGE 33

PAGE 2

PAGE 10

PAGE 18

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Photo: Adam Johnson, Clement Richer, Wade Puklowski 1

13/10/15 11:53 am

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ASSOCIATION NEWS —

To see more great Makita deals like this visit your local ITM store, go to www.itm.co.nz, or pick up a copy of the latest issue of Building Business.

Prices are valid October 3rd - November 30th.

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‘Too much to do and not enough time?’

This seminar focuses on areas you can make gains in both time and money.

Simple ways to time management • Time saving tips from the building site • Effective daily planning • How to achieve more to earn more • Manage emails, appointments and disruptions

FEATURE —

TIME IS MONEY THE RIGHT... � Task � Process � Tools = THE RIGHT RESULTS

You can improve your effectiveness today by simply taking charge and choosing how to spend your time.

Dates and locations for the 2016 Toolbox Seminars across the country are listed below.

NORTH ISLAND DATE

DAY

NIBBLES

START

CITY

VENUE

ADDRESS

SEPTEMBER 26 Sep

Monday

5:30pm

6pm

Whakatane

Whakatane Fire Station

Commerce Street, Whakatane

27 Sep

Tuesday

6:30pm

7pm

Cambridge

Cambridge Cosmopolitan Club

88-89 Burns St, Cambridge

28 Sep

Wednesday

6:30pm

7pm

Rotorua

The Commercial Traveller’s Club

25 Moncur Drive, Rotorua

OCTOBER 10 Oct

Monday

6:30pm

7pm

Silverdale

The Wade Tavern (New Venue)

2 Tavern Road, Auckland

11 Oct

Tuesday

6:30pm

7pm

Wellsford

The Owl

120 Rodney Street, Wellsford

18 Oct

Tuesday

6:30pm

7pm

Wellington

Mana Cruising Club

5 Pascoe Ave, Porirua

19 Oct

Wednesday

5:30pm

6pm

Foxton

Foxton Beach Fire Station

Dawick Street, Foxton

20 Oct

Thursday

5:30pm

6pm

Masterton

Masterton Cosmopolitan Club

398 Queens Street, Masterton

25 Oct

Tuesday

5:30pm

6pm

Gisborne

Gisborne Tatapoutu Sports Fishing Club

No. 2 Wharf Shed, The Esplanade, Gisborne

26 Oct

Wednesday

6:30pm

7pm

Napier

Taradale RSA

156 Gloucester Street Taradale

31 Oct

Monday

6:30pm

7pm

Auckland (Remuera)

The Commerce Club

27/33 Ohinerau Street, Remuera

NOVEMBER 01 Nov

Tuesday

6:30pm

7pm

Auckland (Northcote)

The Backyard

31 Northcote Road, Northcote

07 Nov

Monday

5:30pm

6pm

Taupo

Cosmopolitan Club

5 Taniwha Street, Taupo

08 Nov

Tuesday

6:30pm

7pm

Hamilton

Flagstaff Club Rooms

Commodore Ave, Hamilton

09 Nov

Wednesday

6:30pm

7pm

Tauranga

ASB Baypark Arena

81 Truman Lane, Mt Maunganui

14 Nov

Monday

5:30pm

6pm

Waiheke Island

Waiheke Rugby Club

The Pavilion Onetangi Sport Park O’Brien Rd, Onetangi

15 Nov

Tuesday

5:30pm

6pm

Whangarei

North Tec

Gate 1 Learning Centre Raumanga Valley Rd, Whangarei

16 Nov

Wednesday

5:30pm

6pm

Kerikeri

Kerikeri RSA

Next to Kerikeri Centre, 37 Cobham Road, Kerikeri

21 Nov

Monday

5:30pm

6pm

Palmerston North

Hotel Coachman

140 Fitzherbert Ave, Palmerston North

22 Nov

Tuesday

6:30pm

7pm

New Plymouth

NP Sportfishing & Underwater Club (New Venue)

Ocean View Parade, New Plymouth

28 Nov

Monday

5pm

5:30pm

Drury

Blondies All Day

240 Great South Road, Drury

29 Nov

Tuesday

5pm

5:30pm

Glen Eden

Glen Eden RSA

9 Glendale Road, Glen Eden, Auckland

SOUTH ISLAND DATE

DAY

NIBBLES

START

CITY

VENUE

ADDRESS

OCTOBER 04 Oct

Tuesday

5:30pm

6pm

Greymouth

Kingsgate Hotel

32 Mawhera Quay, Greymouth

05 Oct

Wednesday

5pm

5:30pm

Moutueka

The Sprig & Fern (New Venue)

191b High Street, Motueka

11 Oct

Tuesday

5:30pm

6pm

Timaru

Timaru Town & Country Club

99 Douglas Street, Highfield, Timaru

12 Oct

Wednesday

5:30pm

6pm

Twizel

Twizel Combined Services Club

Ohau Road, Twizel

13 Oct

Thursday

5:30pm

6pm

Christchurch

Hornby Working Men’s Club

17 Carmen Road, Hornby

25 Oct

Tuesday

5:30pm

6pm

Cromwell

Cromwell Town & Country Club

32 Melmore Terrace, Cromwell

26 Oct

Wednesday

5:30pm

6pm

Wanaka

Urban Grind (New Venue)

72 Ardmore Street, Wanaka

27 Oct

Thursday

5:30pm

6pm

Queenstown

Queenstown Events Centre

Joe O’Connell Drive, Frankton

Seminar Dunedin Series

NOVEMBER 07 Nov

Monday

5:30pm

6pm

08 Nov

Tuesday

6pm

6:30pm

Invercargill

The Edgar Centre

116 Portsmouth Drive, Andersons Bay

Ascot Park Hotel

Corner Tay St & Racecourse Rd, Invercargill

15 Nov

Tuesday

5:30pm

6pm

Nelson

Club Waimea

345 Queen Street, Richmond, Nelson

16 Nov

Wednesday

5:30pm

6pm

Blenheim

Admirals Motor Lodge

161 Middle Renwick Road, Springlands

17 Nov

Thursday

5pm

5:30pm

Takaka

The Fire Station

6 Motupipi Street, Takaka

22 Nov

Tuesday

5:30pm

6pm

Christchurch (Rangiora)

Rangiora Golf Club

Golf Links Road, Rangiora

WWW.NZCB.NZ

In association with Carters ‘Your Building Partner’.

BUILD QUALITY

HAVE WE GOT 11

CERTIFIED PLANS —

LATEST NEWS! Supporting Plan Material Update opportunity priceless. Predominately focusing on Certified Plans we educated the public about our great Association, our warranties, and the advantages of using New Zealand Certified Builders.

In our August/September edition of InHouse we advised our Certified Plans members the supporting material for the new and original plan range was now available via an online link distributed directly to our members. Subsequently, since distributing this link we have found this not to be as secure as hoped for our members.

The stand was set up with copies of plans and banners supplied by NSO and we recorded leads from potential customers that we shared out shortly after the show. Some visitors to the show travelled from throughout Southland and Otago and these leads were also passed around to other members out of our region where possible.

As a result, we have now sent all our Certified Plans members an “invitation” to join the Dropbox facility direct enabling them to collect all material as required. Should you not have a Dropbox you will need to create one to access these files.

Note, the original link supplied via edm will no longer be operational and the new Dropbox will be constantly updated as new information comes to hand. Any queries please contact julie@nzcb.nz

The feedback from the public was very positive. Certified Plans are slowly getting built and people are recognising them from building magazines and online marketing. They loved the idea that they could “choose the builder” unlike a housing company. The warranty was also well received, although with a level of scepticism. More national marketing on this new point of difference will help secure the gains it deserves.

Pricing

Improvements for next year would be some written reviews from customers who have gone through the Certified Plans process, these could also be added to the website. Also glossy photos of finished houses next to the floor plans on the display may also help.

Good News! In addition to Carters, PlaceMakers and Mitre 10 we now have ITM coming on board with Certified Plans. Once the Estimate Template sheets have been completed by ITM this will enable them to assist members with faster turnaround times for pricing of Certified Plans. As soon as these are ready we will be in touch with all our members.

I believe the home show is the best bang for buck to get the word out to potential customers. We tried radio advertising for around 8 months last year with very little to show for it. We will most definitely be back there next year.

Southland Home Show

Dwayne Stevenson Southland President

On the 20th and 21st of August a contingent of members from Southland ran a stand at the Southland Home Show. This was the second year we have attended and have found the

12

CERTIFIED PLANS —

New Certified Plans Build In July last year my wife and I decided that we were ready to take on a new challenge. We had renovated our previous home and thought let’s try building new as our next step. Our business is a member of the Certified Plans scheme so this became one of the first places we looked to pursue this idea.

We looked over the various plans and soon found that the ‘Kiwi’ plan could suit the needs of our family well. After a bit of further investigation, we realised that indeed Certified Plans could be an affordable way for us to take this next step. With the plan settled we began the search for a section. By October we had found and purchased our new section so it was time to move forward with the process. We played around with the position of the house on our section and decided that the best way to optimise the potential of our section was to invert the ‘Kiwi’ plan.

With this decision made it was time to submit our information to ACD Architecture using the project manager webpage.

LATEST CERTIFIED PLAN MEMBERS!

The project manager set up was on the most part easy to use and well set up, although to be honest I was glad to be using ourselves as the guinea pigs. At the time we submitted our plans ACD were busy but we still found the process went quite fast and we were able to start construction in April this year. Since then we have been working on our place on the weekends and around some of our other building work. On the whole we have found the plans are of a professional standard and good to work with and as I said earlier the system used to submit all the necessary information was relatively straight forward.

Paul James Paul James Builders Limited, Tauranga

Our company has also begun construction on the ‘Nikau’ plan for a client since then and they required substantial changes to the plan which were still easy to make.

Sean Frieling Kustom Build Limited, Kaitaia

Josh Alley Divine Construction Ltd

13

FEATURE —

NAVIGATING THE COURSE AHEAD 19th Annual NZCB Conference & Expo ANZ Viaduct Events Centre 26th & 27th of May 2017 Preparations are well underway for next year’s NZCB conference & expo and it is going to be amazing!

Conference and Expo: 2017 conference & expo will be held at the ANZ Viaduct Events Centre, which is a premium venue located in Auckland’s vibrant waterfront with spectacular views of the Waitemata Harbour and cityscape. This stunning multi-purpose venue meets all of our conference and expo criteria and is the perfect spot for a seamless conference and expo. The expo area will be on the ground floor, with all other workshops and educational sessions taking place on the floors above.

Conference Agenda: The agenda has changed slightly as we like to mix things up – our next conference and expo will only be 2 days long; Friday the 26th and Saturday 27th of May 2017 – but don’t worry the agenda will be chock-a-block full to educate and motivate each and every attendee. Dress code: Business attire.

The Friday Mingler: Will be held at the Maritime Museum which is just a short walk from the Wynyard Quarter. We have hired out the whole of the Maritime Museum & Maritime Function Room. You will lead yourself on a walking tour through New Zealand’s maritime past whilst sipping on beverages and nibbling on

14

FEATURE —

morsels, you will finally end up in the Maritime Room where you can mingle on the sheltered decks overlooking the majestic harbour.

Dress code: Business attire.

The Saturday Awards Dinner ‘The Deep Blue’: Situated at the Viaduct Events Centre, not a stone throw away from the deep blue ocean, is the perfect location for the Deep Blue Awards Dinner. A suave affair of celebration, announcing the winner of the 2017 Carpentry Apprentice Challenge and the last ‘hoorah’ of the 19th Annual Conference and Expo! Dress code: Deep blue cocktail attire.

Accommodation: We are in the process of negotiating great rates at nearby hotels for your convenience. Once all this information has been gathered an email will be sent out with further information, but keep an eye on your InHouse magazine for regular updates!

Factory Tour: The factory tour will take place as usual on the Thursday prior to conference, this is still a work in progress – but we will keep you up to date when we have more information to pass on.

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Save the dates: Thursday 25th May – Factory Tour Friday 26th May – Conference and Expo commences and Maritime Museum Mingler Saturday 27th May – Conference and Expo continues and Deep Blue Awards Dinner

ASSOCIATION NEWS —

NEW HALO ENHANCEMENTS Therefore, there is no need to have the policy assigned to the new homeowner. However, if the new homeowner or their mortgagee wants to have their name shown on the policy, this can be done for a small administration fee.

There have been several enhancements to the Halo 10 Year Residential Guarantee in the past couple of months which gives greater protection to the homeowner, as well as you (the builder). Here are a couple of the enhancements:

The automatic transfer gives the homeowner a great selling point when they put their property on the market as they can promote the fact that their home comes with the balance of the Halo 10 Year Residential Guarantee. It also means that the builders’ “Sleep Easy” indemnity cover carries over for the full 10 years.

Automatic Transfer: The definition of the Building Owner in the Halo policy now includes any subsequent owner of the property provided they are registered on the certificate of title to the property.

Contract Variation Cover:

Up until now, all Guarantee policies have had to be endorsed to note any subsequent homeowners in order to transfer the cover under the policy. If this wasn’t done, the subsequent owner didn’t have the protection of the guarantee.

Most building guarantees only provide non-completion cover for the original estimated contract price, meaning if there have been variations to the contract, there could be a shortfall in the event of a claim prior to completion.

Whilst this still applies to other guarantees, your Halo 10 Year Residential Guarantee automatically transfers to any subsequent homeowner; irrespective of how many times the property changes hands during its 10 year period of cover.

The Halo Guarantee now provides cover for any contract variations which have been agreed upon in writing by both the homeowner and the builder prior to completion of work – a significant benefit to the property owner!

This means that the Halo Guarantee is always there, even if the property is on-sold several times during its 10 year life.

Halo info on The Toolshed: The new Halo 10 Year Residential Guarantee Insurance Policy Wording • Application Form – to be completed and sent to application@bwrs.co.nz • Guarantee Help Sheet – This provides the answers to some frequently asked questions.

This document is intended for you (the builder), not the homeowner/client.

• Premium and Excess Schedule – This shows the premiums with the new GST changes.

• Waiver of Subrogation (Sleep Easy) Wording – This document is for the benefit of the builder and should not be disclosed to the homeowner.

• Halo 10 Year Residential Guarantee Brochure – This brochure is ideal for passing on to the homeowner to help them understand the benefits of Halo. Professionally printed hard copies of this brochure can be ordered from the online store under Promotional and Marketing Material.

• Halo Webinar – Watch the Halo Webinar if you missed it on the 21st of September. www.nzcb.nz/members/10-year-guarantee/

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What are our members saying about Halo…

Barbara MacGregor  Refresh Renovations It’s great – we’ve signed up four. As it’s mandatory for members, we don’t give the client an out. We build it into our price and just advise them that that’s the guarantee they get when they work with us…

Nick Farrelly  Edgecity Builders Limited It’s all the way you pitch it... I have had no issues in the uptake.

Greg O’Leary  O’Leary Homes Limited All positive feedback from our clients. I tell them that we provide the guarantee, outline the benefits to them and that’s usually enough once they understand how it works. I don’t think I’ve ever had to talk about the cost of Halo as we have always built it into P and G.

Richard Poff  RTP Builders It’s how you pitch it... I’ve had no problems. Sell it as a major protection for the client’s interests, which it is.

Your benefit (as the builder) comes after the first 12 months defects period has ended.

Join the New Zealand Certified Builders Association Facebook Group to discuss the hot topics of the industry… including the Halo Guarantee!

Mark Cochrane  MJC Construction Limited My two new clients are both excited about the extra level of protection offered.

HALO Webinar now available to view on the members ToolShed!

Reminders from the National Support Office: • Halo is mandatory on all residential building work whether a new build, an alteration project or a labour only job when a contract value is over $30,000 (incl GST). Cover can be provided for contracts under $30,000 but this isn’t mandatory.

Brittany Robertson Halo Guarantee Membership Support

• The application should be completed when the contract is signed (before work starts).

• The Halo premiums have now been adjusted to include GST as per the new offshore GST regulations.

• A Certificate of Practical Completion needs to be completed and sent to application@bwrs.co.nz when the Building Work has achieved Practical Completion.

If you have any questions regarding the Halo 10 Year Residential Guarantee, please contact Brittany Robertson at the National Support Office on 0800 237 843 or BrokerWeb Risk Services on 0800 644 444

• The Halo 10 Year Residential Guarantee Policy Wording should be attached to your disclosure statements.

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ASSOCIATION NEWS —

MEMBERS FEEDBACK

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Our own separate survey of builders also found that NZCB members were very rarely asked by their clients for a building contract, warrantee/guarantee or maintenance information.

NZCB recently released the results of an independent survey it commissioned of 1,000 consumers across New Zealand, looking at perceptions and trends in relation to the building industry.

The reality is if there is no contract in place, this makes it more difficult to resolve any issues – both for you and for your clients.

Combined with the results of our own separate survey of builders that we undertook earlier this year, there are a number of interesting insights about what consumers think – and what they expect – when they’ve engaged you for building or renovation work.

NZCB provides a range of template contracts for you to use – it may sometimes seem like an unnecessary compliance exercise, particularly for a small piece of work – but it’s important for spelling out duties and obligations in relation to building projects.

Here are three key findings you should be aware of.

For building work under $30,000 that isn’t automatically covered by our Halo guarantee, there’s also the option to offer the guarantee on a voluntary basis for your clients, to provide maximum peace of mind.

1. People choose their builder based on recommendations from friends and family As you might have guessed, word-of-mouth is still the most powerful way of attracting new clients – 55% of homeowners chose their builder based on recommendations from friends and family. Interestingly, other common methods for choosing a builder, such as ‘previously used’ and advertisements barely featured in comparison (9% and 5% respectively) – highlighting the importance of building and maintaining a positive reputation through your work.

3. There are commonly held misperceptions about the LBP scheme When asked about what they thought was a requirement for a builder to be a Licensed Building Practitioner (LBP), 90% of homeowners thought that having a formal building trade qualification was a requirement and 80% thought that undertaking formal professional development was required to maintain registration.

Consumers also told us what they value in a builder – the top three attributes considered most important by homeowners when choosing a builder were: • Reputation for high quality work • Professionalism and communication • Builder has a formal building trade qualification and experience with similar building projects (third equal).

As you’ll be aware, trade-qualification is not a requirement under the current LBP scheme. The scheme requires some training and professional development to be undertaken, however in NZCB’s view it could be further strengthened to lift standards across the industry.

NZCB members benefit from having access to support and resources that the association provides, which serve to enhance their professionalism and communication with clients.

Clearly consumers’ expectations of the licensing system, and what the licensing system actually requires of builders, are not on the same page.

2. Building contracts aren’t necessarily common practice (but they should be)

NZCB members have an obvious advantage because we’re already one step ahead in this regard, as the only building trade association in New Zealand that requires tradequalification as a prerequisite for membership.

The independent survey of consumers found that 51% of homeowners who had used a builder in the last ten years didn’t have a written contract for work done by their last builder. Of the work done without a written contract:

We also provide a higher standard of ongoing professional development and support to our members, which sets us apart from the wider industry. It’s in your interests to tell consumers that you’re a NZCB member, and what that means in terms of our point of difference from other building trade associations, as well as from builders who do not hold an association membership.

• 22% was for work over $30,000 • 18% was for work between $10,000 and $30,000 • 48% was for work under $10,000.

Given the recent introduction of consumer protection measures to make written contracts mandatory for building work over $30,000, there’s obviously still work to do to raise awareness within the industry and among consumers about the importance of contracts – including for lower-cost building work.

For example, our own separate survey of builders found that NZCB members were significantly more likely than respondents who weren’t an NZCB member to understand what was required of them under the recent Building Act changes, in terms of providing consumers with a prescribed checklist, disclosure statement, contract and warranty/ guarantee information.

This is especially a matter of concern given that 46% of homeowners think the builder has to take responsibility if something goes wrong with a build or renovation.

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ASSOCIATION NEWS —

NZCB CONSUMER SURVEY – WHAT YOU NEED TO KNOW

FEATURE —

COUNTDOWN IS ON FOR CONSTRUCTION SECTOR TO GET ITS HEAD AROUND NEW RULES Building on the foundations

On 31 March 2017, the retention provisions of the Construction Contracts Amendment Act 2015 will come into play, with an aim to protect the construction sector’s supply chain from business failures. The time is ripe for businesses to prepare, particularly for subpart CCAA-2A, as PwC’s Lara Bennett explains.

One of the most immediate issues is that from the moment the new legislation is put into effect, all retentions held at that date must be supported by trust assets – we estimate a minimum of around $600 million will be required across the sector. A large number of principals, contractors and large subcontractors may not immediately be in a position to comply with the change, so they’ll need to plan ahead to meet their new commitments.

In August this year, the New Zealand Herald reported how 60 construction businesses had been liquidated in Christchurch so far during 2016, with creditors owed an estimated $40 million.

Those holding retentions will also need to consider the cost impact of the new regime. Applying a 5 per cent net funding charge on the estimated level of retention trust assets will cost the sector $30 million per annum. This is likely to push building costs higher and/or reduce profit margins across the supply chain. In addressing this, industry participants will need certainty of their cash, asset and profitability position in advance.

While the Garden City has been a focus for ailing construction companies, capital constraints are being felt nationwide. The Herald also noted how building costs across Christchurch, Wellington, Auckland and Dunedin have risen by 21.09 per cent since 2007’s previous housing boom.

Finally, the transition to a new regime is likely to cause disruption. Conflicting claims on the assets ring-fenced by these trusts could lead to legal disputes and practical difficulties, and in the event of a failure may impact statutory priorities, such as employee entitlements.

In a highly competitive sector, and one in which single-digit profit margins are prevalent, the pressure is on to better secure the supply chain and avoid a domino effect from failing businesses.

The impact of failure When Mainzeal Property and Construction Limited failed in 2013, more than $150 million in creditor claims were made, including $18.3 million for retentions held at the date of the collapse. Public debate sparked over the fairness of the current system, leading to an extension of the Construction Contracts Amendment Act 2015 (CCAA) – in particular, subpart 2A (CCAA-2A) – which passed into law in October 2015.

CCAA-2A is intended to provide a better foundation to protect the construction industry’s supply chain.

Notwithstanding the issues identified with the regime, as with any foundation, it is up to industry participants to reduce their exposure to weaknesses or vulnerabilities through careful planning.

Essentially, the amended legislation is a plan to deal with the issue of retentions – the amount kept from contractors and subcontractors to ensure work is completed and any defects remedied.

http://www.nzherald.co.nz/business/news/video.cfm?c_ id=1503079&gal_cid=1503079&gallery_id=164694

Reference

http://www.nzherald.co.nz/business/news/article.cfm?c_ id=3&objectid=11702585

Under the new legislation, which comes into force on 31 March 2017, those holding retentions must have sufficient cash or other “liquid assets” on trust to support the amounts owed. If the business fails, the trust assets are ring-fenced to meet retention obligations and not made available to any other creditor.

The rule change has been introduced to strengthen the industry and protect all stakeholders from the impact of business failures. However, it also exposes a number of issues to understand and plan for in the coming months.

Lara Bennett is an executive director in PwC’s Restructuring team, and held a lead role in the Mainzeal and Bridgecorp receiverships.

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Since the on-set of the global financial crisis in 2008, there has been a steady increase in fraud. Unfortunately, the construction industry has not been immune and the challenge faced by this sector has made it imperative that adequate controls and systems be established to continue to operate effectively, efficiently and profitably while reducing the risk of fraud.

• Does an employee with a high level of responsibility display evidence of being marginalised within the organisation, and • Are there ineffective systems and controls that are not protecting the assets of the business.

Opportunity This is the only component of the ‘fraud triangle’ that management can have a significant effect on – by the introduction and establishment of adequate controls and systems. Therefore, they should seriously consider all controls and systems that are in place, in order to reduce the risk of fraud. Examples of questions that may be considered include:

General trends show that fraud within businesses is likely to be committed by an employee, generally from a position of trust and responsibility.

Fraud can take a number of forms and includes: • Manipulation, falsification or alteration of accounting records for personal benefit • Theft of assets, including cash or stock • Payments for fictitious invoices or payroll obligations • Using business assets for personal gain, e.g. fraudulent loans.

• Are the business’s duties sufficiently segregated? Where practical, duties should be segregated as follows: »» Authorisation of all documents, e.g. purchase invoices »» Transactional accounting through the organisation’s accounting system »» Physical custody and security of assets »» Responsibility for the reconciliation and review of accounting balances »» Authorisation of payments to creditors »» Proper supervision and authorisation of payroll • How is the performance of management and staff monitored – i.e. regular reviews, and • What systems are in place to test that controls are operating as necessary.

A model explaining the factors that are present in almost all fraud situations, known as the ‘Fraud Triangle’ was presented

by Donald R Cressey, and sets out that organisations must eliminate at least one of the following components to decrease the probability of fraud.

• Motive – the need to commit fraud • Rationalisation – the mind-set of the fraudster whereby they justify committing fraud • Opportunity – the situation that enables the fraud to occur.

Management should therefore be aware of the components of the ‘fraud triangle’ and how they relate to their particular circumstances.

While the risk of fraud can never be fully eliminated, the risk can be reduced to an acceptable level.

In the current economic environment, management has no choice but to consider fraud and the systems and controls in place to achieve this acceptable level. It is unfortunately true, that on too many occasions these considerations are not undertaken until after fraud has been committed, financial losses suffered and recovery of these losses is remote, if not impossible.

Each component is discussed in detail below: Motive An important consideration is the motive of employees/ stakeholders to commit fraud. Examples of questions that may be considered include:

In the worst case scenarios, frauds can significantly affect both the financial viability and/or reputation of the organisation.

Therefore, given the available resources and day-to-day running of a business, management needs to be proactive in considering the risk from fraud and the effect it would have, by paying attention to each or all of the components of the ‘fraud triangle’ as they relate to their own circumstances.

• What incentives are offered to employees and suppliers • What are the risks of accounting records being manipulated to present a false position • Does the business have employees who do not take holidays – why is this the case, and • Do any employees have financial pressures, gambling, and drug or alcohol problems.

Rationalisation The mind-set of persons within the business who may be in a position to commit fraud should be studied. Examples of questions that may be considered include:

If you would like to know more about how to mitigate the risk of fraud within your organisation, or if your business has recently suffered a fraud and you would like advice around strengthening your systems and controls, please contact Paul Lawrence at paul.lawrence@crowehorwath.co.nz, or contact your local Crowe Horwath advisor. For the contact details of your local office, please visit

• Has an employee been passed over for promotion, and therefore may be displaying a level of indifference to their job responsibilities

www.crowehorwath.net/NZ/Locations/New Zealand.aspx

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FEATURE —

HOW DOES THE RISK OF FRAUD AFFECT YOUR BUSINESS?

ASSOCIATION NEWS —

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Phone 0800 PAC STEEL | pacificsteel.co.nz

A lot of building work needs licensed people on the job,

right?

Yes, you’re right!

If the work affects the structure, weathertightness or fire safety design of your home, it may be restricted building work.

You MUST use a Licensed Building Practitioner (LBP) for this work.

CBNZ

Go to > building.govt.nz/lbp

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Understand if you need an LBP If you do, check they’re on the register Ask to see their LBP ID card

FEATURE —

USE LICENSED PEOPLE ON THE JOB A new awareness campaign is running to the end of the year, encouraging people to use the right people for their building work. Aimed at both consumers and industry, it’s a reminder that many residential projects need licensed building practitioners (LBPs) to build it right.

• primary structure

“We’re continuing to see high volumes of residential building consents,” says Paul Hobbs, Registrar, Building Practitioner Licensing at MBIE. “In times of high demand, it’s important people know that their choice of practitioner matters. If an LBP is needed but not used, it could affect the safety, value and insurability of a home and lead to a fine of up to $20,000 for the homeowner or builder.”

• weathertightness • fire safety design (in small to medium sized apartment buildings).

Restricted building work does not apply to mixed use buildings (for example, shops on the ground floor and residential above).

To be restricted building work, it also has to be covered by one of the seven licence classes. These are design, carpentry, bricklaying or blocklaying, external plastering, roofing, foundations and site.

Only LBPs can do or supervise restricted building work – it’s a legal requirement. This helps ensure that most New Zealanders’ biggest investment, their home, is structurally sound and weathertight.

Homeowners are encouraged to ask for an LBP’s ID card and check the LBP register. The radio, print and social media campaign also acts as a reminder for practitioners involved with restricted building work.

Introduced in 2012, restricted building work is residential design, construction or alteration work that requires a building consent and involves or affects a house or small to medium sized apartment building’s:

Go to www.building.govt.nz/lbp to learn more about your rights and obligations when building.

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ONE BUILDER ONE ARCHITECT ONE CLIENT

BLAXLAND RESIDENCE Far Horizon Park, Wanaka

FEATURE —

Take one Builder, One Architect, and One client looking for a House of Stature and Beauty and look what can happen.

clearly remember the architect saying, “I want this project to be an enjoyable experience from conception to completion”.

We were somewhat dubious after hearing so many tales of woe from family and friends – how wrong we were!

The builder was Nevin Gibb of Gibb Building Wanaka Ltd who specialises in High End Residential Properties. The Architect was Gary Todd, Gary Todd Architecture who has made a name for himself with his beautiful and striking designs.

Two years ago after making the decision to look for land across the ditch in New Zealand, our family found the perfect location in Wanaka, and purchased an acre section in the Far Horizon Subdivision, with the objective of building a dream holiday home.

Building a dream holiday home in Wanaka New Zealand, there was a clear vision in mind.

A contemporary new home that would bring lasting memories for our family, a home that would encompass the ever changing climate that only Central Otago knows, a home that would be our cosy winter wonderland hideaway, that then come the long hot Summers of Wanaka, could be opened up letting the outside in.

A minor hurdle however, we resided in Australia and the house was to be built in New Zealand.

During the first year, working closely with our Architect Gary Todd Architecture we were able to create our ideal home, all we now needed was a builder to construct the house to the high standard we were hoping to achieve. At the beginning I

A home that would naturally nestle into the natural environment, capturing the pristine views and natural sunlight.

The home was also designed with respect for Central Otago

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“This home features three wings all leading off the main living/kitchen space, a private owners wing with master bed, bathroom and living space...”

gabled forms as a contemporary interpretation using earthy natural materials, colours and landscaping.

And what a beauty she is, this home is a true dedication to what can be achieved, when a team of great minds come together to achieve not the ordinary but a residence that stands out, and turns a dream into a reality.

Set under the Hills to the west of Lake Wanaka, with commanding views across manicured grounds to the Lake and Township, this is a home to admire, and admired she is with many passers-by often stopped outside.

The Details With exceptional detail the Blaxland residence, designed by Gary Todd Architecture and built by Gibb Building Ltd, sits in the majestic Central Otago town of Wanaka.

This stunning north facing home with its floor to ceiling windows and doors captures all the Wanaka scenery on offer. Its polished concrete floor maximises its thermal performance & the thermal skylights bring even more natural light into this space. All of this contributes to creating an incredible ambience and comfort which is a credit to the team involved and a real treat for the Blaxlands.

The Products

The Merits

• APL Altherm Metro Series

• Full height joinery

• APL Altherm Architectural Series

• Recessed joinery for that clean, flush look

• APL Thermally Broken Skylights

• Large 11mm bi-parting plasma pivot entry

• Gib receiver to all items

This was a great project to be involved with. Working with the Blaxlands, Gary Todd and of course Nevin Gibb, the ‘team’ a result which is simply outstanding.

• Urbo Colour Matched Hardware • Green tint, Low E, Argon Gas for maximum performance • 2 x Plasma door panels with 3 negative details

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Eyes are initially drawn to the exterior cladding, where natural Wanaka schist covered in white mortar meets dark black cedar stain. Once entering this home, the wows don’t stop, one key interior which needs mentioning are the incredible polished concrete floors throughout this 350+ sqm residence – they “now” joke, but at the time of signing on with the project, the owners key request – whatever you do – don’t let these floors crack! Framed with timber inlays, crack they didn’t, and it’s from here you flow thru the wall of glass black sliders to the outside BBQ entertaining area complete with exterior louvered roof.

This home features three wings all leading off the main living/kitchen space, a private owners wing with master bed, bathroom and living space, the family wing to the other side, not to mention the upstairs bunk room style space to cater for extended family and friends.

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Another secret to a builder’s success are the trades who work for him. It didn’t take us long to realise many of the best people in the Wanaka region were working on the house with the same pride and enthusiasm as Nevin.

Nevin is a perfectionist and he expects the same from all those who work for him. Every person involved with our project was polite and we always felt they had our best interests at heart.

An old builder mate from Australia holidaying in New Zealand visited the site at the mid-way stage. He came back so impressed with the quality and standard of build and the quality of products used. Not that we needed it, but our faith was further confirmed.

Additionally, of course there’s the garaging, a prerequisite for those additional summer and winter Toys, those lucky enough to have experienced Wanaka know about.

When the plans were finalised our Architect suggested we meet with one particular builder, Nevin Gibb, whose infectious personality, enthusiasm and high standard of professionalism would be the perfect fit for us and our situation… living in another country – how right he was!

For the majority of the time we were in Australia, so Nevin kept us informed of progress every week by emailing photos.

Nevin was always open to our comments and would offer suggestions if he felt changes would improve the functionality and living environment of the house. Any changes made during construction were discussed in detail, quoted and then approved by us so we were always aware where we stood financially. We are so proud showing it off to family and friends.

At all stages of construction, we had the upmost confidence in both Gary and Nevin’s professionalism. Every time we visited the site we were excited and delighted with the progress.

The result is a testament to a strong bond formed between, client, Architect and Contractor, with the family now holidaying in their wonderful home.

www.gibbbuildingwanaka.co.nz

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FEATURE —

“When the plans were finalised our Architect suggested we meet with one particular builder, Nevin Gibb, whose infectious personality, enthusiasm and high standard of professionalism would be the perfect fit for us and our situation… living in another country – how right he was!”

FEATURE —

NEW OUTSIDE. ORIGINAL INSIDE.

Sika 1345

Over the next six months, every single Sika product will get a fresh new look. As existing stock runs out, new labelled stock will replace it. But rest assured, while on the surface we’ll look a little sharper, on the inside we won’t have changed a bit. www.sika.co.nz

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FEATURE —

TECH TIPS Websites – What you need to know The value of customer reviews Learning from feedback

In the online world what others say about your business is just as important as what you say about it.

If you get a review that’s less than glowing, don’t panic. People appreciate it when their feedback is taken on board and it’s a chance to turn the situation into a positive one. Whatever a customer is saying online they’re also saying to friends and family, so catching an issue early through a review system is helpful. Once an issue is resolved you can ask the customer to change their review.

Word of mouth has always been prevalent in the building industry – and with Kiwis increasingly looking online for reviews from others, it’s as important as ever. Online reviews validate what your customers are already saying about you, with the added bonus that you can keep them long term.

Having multiple reviews will also help your business stand out from the competition and increase your chance of showing in search engines like Google, so start asking your customers for reviews today.

Yellow’s top tips for responding to reviews Always respond and thank customers for their feedback • Be factual, honest and don’t bring your emotion into it

Encourage customer reviews

• If you get a glowing review, share it on social media

There are lots of ways you can start building ratings and reviews for your business. Yellow Online Profiles, Facebook and Google Business all have authentic ratings and reviews systems you can direct customers to. Tell all your customers that you want to start building your online reputation and ask them to write a review for you. Regular customers are a great place to start and will be happy to help.

• If there’s an issue, ask the customer to contact you directly and work through it offline • If you make changes based on their comments, let them know!

Get started with Yellow and Fly Buys We can help you get started with a free Yellow Online Profile – and we’ll reward your customers with Fly Buys points for reviewing your business.

Power of the positive Positive reviews are a powerful weapon that help drive business success. When you get a good review, let the reviewer know how important their customer feedback is to your business. Simply saying “thank you” shows you are listening – and reinforces their positive experience.

Find out more about Yellow Online Profiles at nzcb.yellow.co.nz/yellow-online Or call us on 0800 031 075

0800 WARMUP (927 687) www.warmup.co.nz

undertile

undercarpet

inslab

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tiled shower

controller

ITAB — Shane Ririnui Business Development Manager – North Island

GOOD JOB GUYS!

The final round of Tool Box Seminar Series is just a week away with an exciting topic to close out a year of changes, not just to the industry but also the association. “Time is Money” is the topic we will be presenting sponsored by Carters. We will be discussing and identifying some simply techniques to save you time, achieve greater results which will result in you earning more.

Completed Apprentices ARA INSTITUTE OF CANTERBURY

So I will be looking forward to seeing everyone again, and on my travels please don’t be afraid to come and introduce yourself to me if we haven’t already met. Don’t forget to bring your new membership card along with you to the TBS. We have the scanners ready for the QR Code reader on the back for you to sign in with.

Nicholas Clark – Camel Construction Benjamin Curteis – SBS Contracting Damien Gibben – Stefan Wilkes Builders Kerry Manson – Reynolds Construction Limited

Also on another note I would like to acknowledge the Auckland Region Committee for their efforts at this year’s Auckland Home Show. Stavros and the guys, and Carol manned the stand for the 5-day expo. It was nice to see some of our members come and visit the stand during my 2 days I was rostered on.

Joshua McColl – Deu 30 Projects Ltd Dylan Roberts – M & O Brown Builders Limited Roy Toner – Mike Oorschot Builders Limited EASTERN INSTITUTE OF TECHNOLOGY (EIT)

I see we have a couple more regional events planned for the remainder of the year so if you can give some assistance or support advise your president or committee and also don’t forget we at NSO are always here to assist in any way, where possible.

Koman Rameka – MDP Building Limited NELSON MARLBOROUGH INSTITUTE OF TECHNOLOGY (NMIT) Pheakdey Heng – Hamish Ryan Construction

One last thing I would like to point out is the 2 additional TBS locations which have been confirmed moving forward are Drury at Blondies All Day Restaurant Bar and Glen Eden at the RSA. For more info on these 2 additional TBS check the flyers for the dates either in this issue of InHouse, on our website or wait for the email to be sent to you with the dates.

SOUTHERN INSTITUTE OF TECHNOLOGY (SIT) James Taylor – Jason Gorton Building UNITEC INSTITUTE OF TECHNOLOGY

Thank you and will be seeing you soon

Andrew Whyte – Buildform

Regards Shane

32

ITAB —

HAPPENINGS IN THE SOUTH There’s been plenty happening in the southern regions since my last article.

Nelson and Canterbury regions have both held Building Expo’s promoting NZCB and showcasing their Regional and National Partners products and services to their local building communities. I was luckily enough to attend both of these well organised successful events, it was pleasing to see many industry leaders coming together at each event. The organisers and exhibitors who took the opportunity to host a stand each deserve a big thank you for their time and effort, well done to all involved.

I would like to welcome Anna Gaskell to NZCB. Anna is the newly appointed regional coordinator for Nelson, she was responsible for taking care of the administrative tasks and planning involved with the successful Nelson Build Expo.

Having a regional coordinator can save committee members a heap of time and effort when organising local events and is well worth considering if you don’t...

Nick presenting at Motueka ITM.

In Invercargill, NZCB members attended the Southland Home Show and promoted Certified Plans, regional president Dwayne Stevenson said the range of house plans was well received and the positive response from members of the public made it a definite worthwhile event.

Gore Builder and stanch NZCB member Aaron Stevenson attended the local High School’s Careers evening and promoted the benefits and lifestyle that a career in the building industry can offer school leavers. Aaron had some pull up banners made to take along to the evening, he also however displays them in his business’s office for all to see, it’s great to see the new brand being embraced!

Aaron Stevenson’s NZCB Signs.

In Motueka at the request of the local ITM branch I held a ToolBox Seminar which was well attended, so much so there weren’t enough chairs and late arrivals had to stand at the back of the room! There’s certainly plenty of dedicated practitioners in the Motueka and Golden Bay regions and I am happy to say that both locations will become standard features on the Seminar series circuit.

Nick Matthews Business Development Manager – South Island

See you in the regions.

Nick Matthews

33

ITAB —

WELL DONE TO ALL OF OUR RECENTLY COMPLETED ITAB APPRENTICES! Congratulations to recently completed ITAB apprentice Tom Walsh, who did New Zealand proud at the Rio 2016 Olympic Games winning a Bronze medal in the Shot Put event. Continuing on from his Olympic success Tom competed and won the European Diamond League event, with a personal best throw of 22.2 metres! Tom is home now in Canterbury working as a carpenter for a local builder, looks like he has a bright future ahead of him in both his sporting and building careers.

Tom Walsh recently qualified ITAB apprentice and Olympic Medal winner.

ITAB Apprentices from Nelson Marlborough Institute of Technology (NMIT) recently competed in the 2016 Upper South regional event of the Apprentice of the Year competition. In what is considered to be a first, these talented Nelson based ITAB Apprentices took out first, second and third places! The event winner Wade Puklowski also won the Nelson regional NZCB Carpentry Apprentice Challenge back in April and placed second overall in its national final. Wade progresses though to the national final of the Apprentice of the Year in November and we wish him the very best of luck!

Keep an eye out on the Central Otago and Southland roads for the newly branded ITAB Vehicles! ITAB Apprentice numbers have grown over the last twelve months in the Dunedin & Central Otago region and are expected to increase further with promotional initiatives like this. We think it looks pretty sharp and is a great way to increase awareness of the ITAB Programme as well as promote the local regions Training Provider’s Carpentry courses.

Left to Right: Steve McIntrye (ITAB Tutor), 3rd place – Anthony Cotton-Rees, 1st place – Wade Puklowski, 2nd place – Luke Senkeldam, Huw Morgan (ITAB Tutor).

Nick Matthews ITAB Development Manager

SIT Carpentry students Sean Robertson & Ken Campbell.

34

I guess some of you are approaching the final quarter of 2016 with a bit of concern, as ‘busy’ becomes ‘busier’ in the lead up to Christmas, and the demands on you and your teams begin to increase. The ITP’s will be busy working with full time students to see them complete their programmes, and planning for many of these to become apprentices as they move into full time employment.

Many are also working on final plans for the launching of the new New Zealand Certificate in Construction Trade Skills Level 3, the new national pre-trade qualification for the industry. This will replace the numerous local qualifications, with the first students enrolling for a February 2017 start.

A revised version of the trade qualification will also roll out in 2017 – the New Zealand Certificate in Carpentry Level 4.

Carpentry apprentice numbers on the whole have increased throughout 2016, with the Tauranga hub of Waiariki Bay of Plenty Polytechnic experiencing around 30% growth since January. This has meant recruiting new staff, which we’re trying to recruit from the same labour pool as the builders/ contractors, other providers, BCA’s, & possibly Worksafe.

Brian Dillon Chairman AST Trust

A focus for the AST at this time of year is the annual Excellence Awards, which are given to worthy recipients training under the ITAB banner. It’s very satisfying to acknowledge the efforts of these recipients, and having the AST sponsor the awards is another way to support these apprentices. We look forward to seeing the award winners, and all apprentice graduates, at the various ceremonies run by the ITP’s over the coming weeks.

Regards, Brian Dillon Chairman, AST Trust

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AST TRUST —

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Paying Out Annual Leave When Sick Leave Has Run Out

Trial Period Q: I have an employee still in the 90 day “trial period.” He is not working out as he does not seem to be a team player.

As he is in the trial period, I can just dismiss him can’t I?

Q: We have an employee who has used up her sick leave entitlement. We have felt a bit sorry for her and so have made up her pay by paying out annual leave. She hasn’t agreed to use her annual leave this way, but there is no problem with what we have done is there?

A: First, you must have a valid trial period clause in your employment agreement with him that complies with the requirements of the Employment Relations Act 2000.

A: You cannot unilaterally require your employee to use her annual leave in this way. You must first get her agreement to use her annual leave entitlement to make up her pay.

If you do not do so, you may find yourself having to pay annual leave again in accordance with the Holidays Act 2003 when employment ends.

Second, he must not have been employed by you previously, and he must have entered into (ie signed) the employment agreement before he started work for you.

This requirement is strictly enforced by the Employment Court and Employment Relations Authority.

Third, you must comply with the notice period provided in the trial period clause, and give notice of dismissal within the trial period.

Danny Jacobson and Trudy Marshall are Partners at Employment Lawyers Tauranga and they specialise exclusively in employment law. They operate our Employment Helpline for NZCB members: Phone 07 928 0529. They have also previously produced a Guide for Employers in the Construction Industry which NZCB can send out to any members on request. (The above is by its nature general, and is not intended to be a substitute for legal advice).

We commonly encounter issues with the more technical aspects of compliance with the trial period provisions and therefore recommend that you seek advice before you take steps to dismiss an employee under any trial period provision.

37

ASSOCIATION NEWS —

EMPLOYMENT LAW

TRENDING ARTICLES IN NZCB NEWS

ASSOCIATION NEWS —

$61M BUILDING SURGE Looks like a blazing-hot year –for construction industry A $2.5 million company headquarters and 20 beach villas are the stars among the city’s latest building projects worth more than $60 million.

Rebecca Perrett, Tauranga City Council’s general manager, environmental services group, said NZCB’s move was a positive sign. She added that the site had some engineering challenges because the area was former marshland. “What we are finding is that as one new building comes on board, it revitalises these areas, which is what we need to happen.”

Priority One acting chief executive Greg Simmonds also for construction industry welcomed NZCB’s decision to build in Tauranga.

Tauranga’s red-hot construction industry continues to sizzle with August residential and commercial building consents totalling 254 and worth a total $61.79m, new figures show.

NZ Certified Builders Association (NZCB) received building consent for a $2.5m site redevelopment for its new national head office at 10 Marsh St, chief executive Grant Florence told the Bay of Plenty Times.

“It shows the continuing confidence in the regional economy and our attractiveness and competitive advantages of as a destination for businesses.” The August data also included three consents totalling $4.36m at 210 Maranui St, Papamoa, for 20 villas, which are part of Generus Living Group’s 227 villa retirement development Pacific House Village.

Mr Florence said the project reflected the continuing positive sentiment in the construction sector. “The consent numbers reflect the overall strength of what is happening here,” he said. NZCB currently shares space at 102-104 Spring St, and he said the association had decided it made sense to have a home of its own.

“We’ve seen this huge influx from Auckland,” said Generus development manager Jim Mora. “We’re seeing unprecedented demand. We’ve got 70 contracts in front of us of unbuilt houses.” Ms Perrett said August’s $61.79m total made up of $45.97m in 121 residential consents and $11.54m in 37 commercial consents was lower than the May yearly peak of $66.17m in consent value.

“Our board has reviewed a number of times whether Tauranga is the right place to have a national office and each time has come up with the same decision.” Mr Florence said the site had been acquired some time ago and the association was planning a two-storey building around 560sq m, with site works expected to start this month.

“Our conversations with the building industry have all indicated that we are going to be tracking upwards and we’re seeing some of those numbers already coming through in September. We’re not anticipating this to flatten back down.

What we are seeing is more of a ramp up.”

FROM THE MEDIA

Tauranga mayor Stuart Crosby said the consent figures were again an indication the construction industry was still going strong.

“There are no indications that’s going to slow down. With low interest rates, confidence in New Zealand and in Tauranga City will continue. What I would like to see is sustainability.

“I believe it will continue well into 2018, at a minimum.”

David Porter

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Turbo charge your teams, communication, and performance: VISIBILITY

• Drive these KPI’s and all related processes

• Make your team and business goals visible

Once you have the 5 KPI’s you need to relentless drive improvement for each one

It is absolutely critical to make your team and business goals visible. How? Ask your people – you’ll find lists, graphs, and all manner of summaries produced, and your people will find ways to define, measure and achieve team and business goals, as long as there is effective leadership, and quality management at team level.

• Reward your people around these KPI’s People like recognition, and while some prefer a quiet word, and others crave group recognition, very few people actually want no recognition.

If you want your business to achieve its KPI’s then be clear about them, drive them, and recognise your people when they achieve them, and do this consistently.

• Measure what is important Be very careful how many things you measure – no more than 2-3 per team, and no more than 5 across the business.

Measuring too many things results in confusion, and loss of energy and drive

AN ONGOING CONVERSATION • Once you have visibility and clarity, the Ongoing Conversation is about... the details of Visibility and Clarity!!

• Manage what you measure How can you possibly manage improvement, unless you can define where you are, where you want to be, and how close you are to where you want to be.

OK, ever heard “I hate meetings, they never achieve anything!” An ongoing conversation is NOT a meeting. It is getting together for a common purpose, and can be a 5 minute daily briefing, right through to a full day leadership team session. What matters is that the 5 KPI’s in your business are understood and agreed by all of your people, and they relentless strive towards achieving and exceeding these KPI’s.

• Make the measurements visible There is no point in hiding away the drivers of business improvement, as without visibility, your people will not be engaged, and therefore will not improve their clarity regarding what they really need to focus on.

• This OC is your business culture – it is living this within your business

CLARITY • Eliminate goals clutter

You’ll be surprised by how many “meetings” fall away with an “ongoing conversation” centred on 5 agreed KPI’s, as people and teams are drawn together, both by a common purpose, and also by a realisation that one KPI is dependent on others, and all others. Silos will break down.

Assemble the goals from each team, and work through with your leadership team which of these goals are most important.

• No more than 5 KPI’s

Murray Fulton Director | Business Advisor Advantage Business Ltd

Imagine your business is an F15 jet. You must know where you are, where you’re going, how fast you’re going, when you’ll get to where you want to, and most important of all, how to take evasive action when threats appear

39

FEATURE —

VISIBILITY, CLARITY, AND AN ONGOING CONVERSATION

ASSOCIATION NEWS —

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Many NZCB members have reported receiving dodgy emails from online scam artists recently, showing that these perpetrators are becoming more persistent and inventive, in their bid to siphon funds from hard working people.

Survey terminology CAN YOU DEFINE THE FOLLOWING…?

1. Acre 2. Caveat 3. Easement in gross 4. Fee simple 5. Height restriction covenant 6. Link [measurement]

These emails are not the only avenues being used for this purpose, with an increase in Cryptolocker strikes also being reported throughout New Zealand and worldwide.

7. Land transfer survey 8. Interim title 9. Right of way 10. Unit title

Cryptolocker is a ransomware Trojan. It enters your system through an attachment or link in an email, and essentially holds your system to ransom, not releasing your data back to you until a ransom is paid. It may sound like something that only happens on American TV, but it is very real and you could be at risk.

1 An imperial measure of area and is equal to 0.404686ha or 4047m2 2 An instrument registered against a Certificate of Title which prevents certain actions taking place within the title. A caveat will stop any dealing on a Certificate of Title including registration of transfers, mortgages, easements and variations of any other instrument on a title. 3 An easement in gross is an easement that, unlike a normal easement, does not attach to any dominant tenement; examples are the right of public utilities, such as power, gas, phone, water and sewerage, to use part of the land. 4 Referred to on your title as an “estate in fee simple”. In brief terms this means you have the highest form of ownership of property in the NZ legal system.

5 A covenant that restricts buildings, structures and vegetation so that they do not penetrate a certain height plain. An example of a height restriction plain might be 2m up from the boundary line, and then extending at a 45° angle into the property. 6 Was the official measurement unit in New Zealand before the adoption of the metric system. 1 link is equal to 0.201168m. Most of New Zealand’s roads were set out at 100 links (or 1 chain) wide. 7 A survey that transfers the rights of one title to other titles, by subdivision of land or the creation of units/cross-leases or the creation of easements. 8 A title unique to Hawkes Bay, and was created after the 1931 earthquake to equate for the titles and plans that were destroyed in the aftermath by fire.

9 Is a right, set out in an easement, to pass over property. 10 A unit title provides separate ownership of a “principal unit” (the dwelling) and one or more “accessory units” (e.g. garages or outdoor spaces).

Some tips from the experts in minimising your exposure, are: • Ensure your anti-virus and anti-malware is turned on and updated regularly • Install Windows updates when prompted • Do not open attachments in emails, unless you are 100% certain of their validity • Do not click on links within emails, unless you are 100% certain • Last but certainly not least – back up your files regularly.

How often? If your system crashed today, how much data could you stand to lose? A weekly habit of backing up and taking offsite, could be the best insurance policy you can have.

Additionally, joining the closed NZCB Facebook page can be super helpful for hearing from other members about the emails currently doing the rounds, as well as lots of other useful info, of course.

Answers:

Thanks to Houston Technology Group, for providing this advice.

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ASSOCIATION NEWS —

QUIZ THE GREY IT SECURITY MATTER

FEATURE —

MORE REASONS TO AVOID RETENTIONS

By Geoff Hardy of Auckland law firm Martelli McKegg Retentions are commonplace in commercial and infrastructure projects, where the standard form contracts most commonly used are the New Zealand Standards and New Zealand Institute of Architects forms, and less frequently, overseas models like the FIDIC and NEC contracts. All of those allow for retentions, and often they are used in the more up-market residential projects as well, especially if an architect or engineer is administering the contract for the owner. If you as a builder are invited to sign a contract that provides for retentions out of your payments, then chances are you are going to want to withhold retentions out of the money you will owe your subcontractors as well. And as of 31 March 2017, there is a good reason why you might think twice about that.

Retentions aren’t a common feature of the residential construction industry. The standard form contracts put out by the two big trade associations – Certified Builders and Master Builders – don’t make any allowance for them, and nor do the contracts used by the volume building companies and franchises. And that is understandable. The small-medium builders who do most of the residential construction work can’t afford to have 5-15% of their income withheld from them for weeks if not months at an end, especially when they have paid out the bulk of their income to suppliers and subcontractors and they don’t have much left to pay their own bills.

On 31 March 2017 the amendments to the Construction Contracts Act that relate to retentions, come into play. All retentions (above a certain level) that are held on or after that date, must be held in trust for the party that the money is owed to. And present indications are, that means all retentions that you happen to be holding at midnight on 30 March. In other words, it will apply to contracts you are entering into right now, that will still be going when April 2017 rolls around.

They don’t have high volumes of cash flowing in and out of their coffers from multiple building projects, like the big construction companies do. If they are going to be deprived of their money temporarily then they need to cover the shortfall from a bank overdraft. That isn’t easy to come by for a small business without substantial assets. And if they can get an overdraft, it is not easy in a competitive market to add the borrowing cost into their contract price, in which case it erodes their margin.

The new rules only apply to commercial construction contracts, not residential. But don’t be fooled by that. A commercial construction contract means a contract for carrying out construction work in which none of the parties is an individual who is occupying, or intends to occupy, the premises wholly or mainly as a dwellinghouse. That means that some residential contracts will be caught by the new rules. For example, where the dwellinghouse is an investment property, or it is owned by a company (as long as it is not a trustee for the occupants). Or, where the builder is working for a franchise or group home building company, or the builder is a subcontractor. In those cases, the builder’s client is not an individual who is going to live in the premises. And obviously the builder isn’t going to either, so all subcontracts will be commercial construction contracts.

There’s a moral argument against retentions, too. A construction project is one of mutual exchange. The builder provides labour, materials and project management, and the owner pays him in money. There is no logical reason that why one party should perform his side of the bargain first, and the other later. As it is, the builder does tend to go first, and then he invoices periodically in the hope that he gets paid. It is just as logical to ask the owner to pay first, in the hope that the builder then does the job. One party has to assume the risk, but it could be either.

Retentions are in fact used as leverage to get the builder to finish the job, and to be fair, there is a reason for that. To be able to survive in the building industry you have to be continually picking up new projects as you complete old ones, otherwise you could be out of work for a long time. When the old one approaches the end, it is a natural tendency to channel your resources into the exciting new project and neglect the boring old one, especially when you have been paid in full on practical completion. So retentions create a powerful incentive to get the final finishing touches done, and more particularly, to rectify the defects identified during the defects notification period.

What does that mean for you as a head contractor? It means your homeowner client won’t have to hold retentions in trust for you, but if you are withholding retentions from your subcontractors, you will have to hold those retentions in trust for them. You must hold them in the form of cash or other liquid assets that are readily converted into cash, so you can get them back quickly. Therefore come 31 March, you will actually have to hold the money, although it does not need to be paid into a separate trust account, and it can be mixed up

42

There are some other strict rules. You must not use any retention money for the payment of debts owed to any of your creditors other than the subcontractor you are holding it for. If you don’t end up paying the retention money out, you must not use it for anything other than to remedy defects in the performance of the subcontractor’s obligations under the contract. And if there are no defects, then retention money is payable on the date on which the subcontractor has performed all of its obligations under the contract to the standard agreed under the contract. So for the many subcontractors who do their work at the beginning of the project, you will have to pay out their retentions long before practical completion, unless you have expressly required them to come back and rectify defects in their work that are notified during the defects liability period.

Like me, you must be asking yourself: Are retentions actually worth the trouble?

Geoff Hardy heads up the construction law team in the Auckland law firm Martelli McKegg. Contact Geoff on (09) 379 0700 or geoff@martellimckegg.co.nz.

Geoff Hardy provides legal advice to NZCB and all of its member builders. Contact Geoff on (09) 379 0700 or geoff@martellimckegg.co.nz.

This article is not intended to be relied upon as legal advice.

This article is not intended to be relied upon as legal advice.

43

FEATURE —

“Retentions are in fact used as leverage to get the builder to finish the job, and to be fair, there is a reason for that. To be able to survive in the building industry you have to be continually picking up new projects as you complete old ones, otherwise you could be out of work for a long time.”

with other moneys. You will have to keep proper accounting records showing where that retention money is being held, and your subcontractors can insist on inspecting those accounting records at all reasonable times and without charge.

FEATURE —

THE HIDDEN COSTS OF DEFERRED MAINTENANCE

By Verney Ryan, Beacon Pathway

could end up costing a lot more in the long run; one house needed to replace rotten window frames that could have been quite cheaply maintained. And most did not realise that the outcome of putting off the simple maintenance could directly affect their family’s health, comfort and budget.

We’ve recently finished a project which included an assessment of the condition of 10 homes in Tamaki, Auckland. This turned out to be a lesson in why putting off maintenance is a bad idea in the long run!

It’s a lesson we need to share widely around New Zealand.

The aim of the project was actually to see what it would take to improve the performance of these houses and bring them up to a reasonable rentable condition or whether retiring the houses would be a better option. It’s a very complex issue (and not one I’m focusing on here) but one very simple message for homeowners emerged: Putting off home maintenance can damage your household’s health, raise your heating bills, make your home less comfortable, and cost you more in the long run.

Damaged weatherboards letting water into the house.

As frontline advisors to homeowners, it is helpful for builders to be able to make the link between maintenance and comfort, health, running costs, and future bills for your clients. Below are some examples of what we saw, and the impacts they were having.

While paying for regular maintenance was a big issue for these households, there was also a lack of understanding of the need for, and importance of, regular maintenance. Most did not realise that delaying simple areas of maintenance

Damage to window frames may end up requiring new frames.

MAINTENANCE AREA

WHAT WAS HAPPENING

IMPACT ON HOUSEHOLD

Outside cladding not re-painted

Rotten weatherboards let water into the house

Leaks cause indoor damage (e.g. damp plasterboard) – cost more to fix

Rotting cladding not replaced

Leaks make house damp and mouldy – unhealthy Damp air is hard to heat – higher heating bills Leaks cause indoor damage (e.g. damp plasterboard) – cost more to fix

Roofing not maintained – missing tiles, Water leaks into the house cracked tiles / ridgelines / capping Warmth escapes from house

Leaks make house damp and mouldy – unhealthy Damp air is hard to heat – higher heating bills

Blocked gutters, lack of guttering

Warm air escapes – cold house Damp damages house structure, floors and plasterboard – cost more to fix

Water leaks into housing cavities

Leaks make house damp and mouldy – unhealthy, cold Window frames and seals not maintained

Rot starts in wooden frames, letting water into house and creating draughts

Damp air is hard to heat – higher heating bills Leaks cause more damage to frames – higher cost to fix in long run Leaks make house damp and mouldy – unhealthy Damp air is hard to heat – higher heating bills

Sealants in wet areas not replaced

Allows water to leak into plasterboard and cavities

44

Gaps and lack of seals lets cold air in – unhealthy, cold, higher heating bills Damp damages floors and plasterboard – cost more to fix Damp surfaces cause mould – unhealthy, cold, added health costs

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Ph: 03 442 6006 Mob: 021 307 232 Email: peter@calderglen.co.nz

• Showcase your work with a website all managed by Yellow • Get listed on NZ’s No.1 digital business directory • Generate real leads online See nzcb.yellow.co.nz for all the info.

2. Business Legal Issues GEOFF HARDY For up to 20 minutes of free legal advice on business-related issues, phone Geoff on 09 379 0700, any time between 8.30am-5.30pm weekdays.

Professional Development All trade qualified builders need to provide evidence they’re up-to-date with best industry practice. We can help by offering a number of ways to gain skills maintenance points through the following professional development opportunities:

3. General Business Accounting or Tax STEVE BROCKLEBANK For general business,accounting or tax issues you can contact Steve Brocklebank of PricewaterhouseCoopers.

You must identify yourself as a NZCB member and any information you disclose will be treated with confidence. Call Steve Ph: 03 470 3615

• • • •

Free copies of InHouse magazine Access to ToolTube videos ToolBox seminars held around NZ several times a year Trade Training meetings held frequently throughout our 22 regions • New regulations published in our Online Knowledge Centre • Annual Conference with expert workshops and seminars.

4. General Insurance JIM RICKARD General Insurance issues?

Call Jim at CBA insurances.

Ph: 07 579 6259 Mob: 0274 505 528 Email: jim@cbainsurances.co.nz 5. Employment DANNY JACOBSON TRUDY MARSHALL For advice on employment related issues, call for a free 10 minute session.

Ph: 07 928 0529 Mob: 021 857 529

Online Business Services Running a successful business requires a lot of effort behind the scenes. Dealing with contracts, managing staff, maintaining standards and promoting your services are all important. We can save you time, money and stress by helping with: • • • • • • • • •

6. Health & Safety

Building contracts to complete online for your clients Apply for the Halo 10 Year Residential Guarantee Insurance Notice of Variation Disclosure Statement Employment agreements to suit your staffing needs Employers guide to the construction industry Access to Certified Builders logos Regional event calendar ‘Find your builder’ regional search engine.

HAZARDCO For advice on any health and safety issues, call Hazard Co for a free 30 minute session.

Ph: 0800 555 339 Email: info@hazardco.com

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MEMBERSHIP BENEFITS —

MEMBERSHIP BENEFITS

NAIL THE WHOLE JOB WITH US From the foundations to the fenceline you can get the whole job done with Mitre 10. We can supply and deliver your complete build, sort out any special orders, and help make the whole job go as smoothly as possible.

mitre10.co.nz/trade

FEATURE —

HEALTH AND SAFETY: WHAT’S THE DIFFERENCE BETWEEN “HAZARD” AND “RISK”

HAZARD Anything that can cause harm (eg. a chemical, electricity, ladders, etc)

RISK How great the chance that someone will be harmed by the hazard

3. Engineering controls: these are mechanical or structural controls such as sound proofing, guards or interlocks. E.g. where working with compressed air with a compressor in the same building as people work, engineering controls like sound proofing could minimise the risks created by the compressor’s noise.

The new Health and Safety at Work Act 2015 (“Act”) has been in place for several months now, and most businesses are getting to grips with the new terminology and concepts, including the two key concepts of hazard and risk explored in this article.

4. Administrative controls – training and procedures: If none of the above controls can be implemented, or can’t be implemented straight away, administrative controls should apply. E.g. retraining, supervision, and rotation of workers performing repetitive tasks, to minimise hazard associated risks.

The definition of “hazard” is broad – encompassing anything that could cause harm, in terms of death, injury or illness to a person. It includes a person’s behaviour which has the potential to cause harm, “whether or not that behaviour results from physical or mental fatigue, drugs, alcohol, traumatic shock, or another temporary condition that affects a person’s behaviour”. The definition of risk is also broad, and risks to both physical and mental health must be managed.

5. Personal protective equipment (PPE): The last control option is PPE. The rationale for this being a final resort is that PPE’s reliability to prevent harm is dependent entirely on a person doing the right thing every single time, yet mistakes are inevitable. E.g in a job that discharges chemicals to the atmosphere, for example, spray painting or asbestos removal, forgetting to change a respirator (PPE) filter could be fatal.

An engineering control such as a filtered extraction system would remove reliance on PPE for safety.

Example: If a ladder is a hazard, a couple of the risks are the ladder falling onto a person, tripping over the ladder, falling from the ladder.

Your health and safety management plan should include a process to identify hazards and associated risks, and manage these. For help with ensuring your plan does this effectively, we recommend seeking advice. We can assist with plan auditing, gaps analysis and software recommendations – contact us for help.

Once work related hazards are identified, the risk of harm should be assessed using a risk matrix, to measure the likelihood of the harm occurring and the how serious the harm could be and rate the risk accordingly. If you cannot eliminate the risk, then, the risk must be managed by applying the following controls, in order, to take the safest approach as reasonably practicable in the circumstances: 1. Substitution: substitute the hazard giving rise to the risk with something that gives rise to a lesser risk. E.g. instead of using an acid based cleaning solution, use an organic product with no harm side effects. Practically, the result of this form of substitution is elimination of risk.

2. Isolation: isolate the hazard, to prevent anyone coming into contact with it. “Isolation” is any form of barrier between a person and a hazard. E.g. Many carparks now have a metal barrier for pedestrian walkways, isolating vehicle hazards and preventing risk of harm by contact between cars and shoppers.

Kate Ashcroft is a Principal with Copeland Ashcroft Law, an independent legal practice providing specialist advice, representation and support across the full ambit of employment and health and safety law, to businesses throughout New Zealand. Why us? Put simply, as specialists in employment and health and safety law, we know our stuff. That means we efficiently assist you with pragmatic and specific advice, to suit your needs. We know what works, and we partner with you to achieve the results you want, so you can get on with business. See www.copelandashcroft.co.nz for details.

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ASSOCIATION NEWS —

CONTRACT WORKS INSURANCE BASICS There are some common misunderstandings that we see when arranging contract works insurance.

Getting your head around these could avoid potential headaches and cost.

Renovations, alterations, labour only

Banks will require it

When doing alteration and renovation work, or if your contract is labour only, it is usually your client’s responsibility to arrange contract works insurance. Even though your contract may require them to do so don’t just assume they will. A number of domestic house insurers don’t actually do it, or they may quote what seem like high premiums, and this can put off homeowners from getting it. Their inaction could leave you exposed if something happens, so make sure you ask them for a copy of the contract works insurance certificate before you start work. If the project is a new build, unless it’s labour only, it is usually the builder’s responsibility to arrange the contract works insurance.

If you’re building your own place and haven’t arranged contract works insurance from the outset, it could be very difficult to get it during the build. What usually happens is the builder needs some bank finance halfway through the job and the bank will only lend with evidence of insurance. So save yourself the hassle (and the potential risk) by getting the cover in place from day one.

For a contract works insurance quote contact the CBA Insurances team on 0800 237 843 (ext 2) or go to www.cbainsurances.co.nz.

Include principal supplied materials Whoever arranges it the policy covers both the builder and the principal (both should be named on the policy), so it’s important that any materials (and sub-contract labour) the owner supplies are included too.

CBA Insurances is the insurance broker for NZCB members, providing all types of commercial and domestic cover. The team has extensive experience and specialise in insurance for builders. We are a member of the Steadfast Insurance Group, whose members have more than 80 offices New Zealand-wide. Contact Gwenda on 0800 237 843 (ext 2) or gwenda@cbainsurances.co.nz.

When it expires The wording of contract works polices all vary, however in general they will define when the policy ends as the EARLIER of: • The end date on the policy • Practical completion of the work • When the client moves in (including temporary or partial – even storing some of their stuff in there could end the cover) • For a spec, when 95% of the value of the work has been done Ground work and foundations need insuring too!

If there’s a natural event like an earthquake, landslip or flood your groundwork and foundations could be destroyed or require substantial rework. Plus there’s the cost of demolition and removal of debris to add to the bill. Contract works insurance will cover this, but only if you’ve arranged it before the work starts.

48

The housing and building industry continues to get plenty of airtime in all forms of media across New Zealand.

Rebrand:

Whether its lack of housing stock, spiralling prices, too many investors, Councils being slow or not enough skilled tradespeople the media continue to have a frenzy on this issues. I am sure many in the industry would just like to not have it be, front page or lead item every second day – once a week we could live with but every second day is a challenge.

It’s great to see many of our new brand images appearing on web sites, letterheads and vehicles across the country. A good start but we can all do better I am sure. All members have been provided with new branded membership certificates and stickers so I urge you to take the time and get yours updated. It is really encouraging to see the amount of new branded clothing that is being purchased through our online store. There are plenty of new brochures and other material from NSO.

From speaking to many of our members most in the industry would just like to get on and build the full order books that we have across the country and enjoy the prolonged demand.

Our next TV commercial is due to go to air in mid-October having just been filmed as this edition of InHouse goes to print.

This is focused around engaging NZCB with the homeowner directly – as part of our overall brand strategy. What an opportunity to make sure you have the correct Association branding in your business to make sure you are able to gain as much leverage as possible from the TV commercial presence.

Looking ahead: It was interesting to see this year’s Construction Pipeline report produced by MBIE and BRANZ – that showed strong construction growth forecast through to 2020 – 2022. This type of forecast is as strong as what has been for many years and provides an encouraging sign for those who wish to invest in their business for growth (and profit) – but may have been wary in the past due to the ‘hot and cold’ cycles that our industry seems to have put ourselves through over the last 50 years or so.

More about this in the next edition including a behind the scenes look at who was really behind those advertisements.

A very positive outlook.

Regional President Zone Meetings: It was great to get our Regional Presidents together recently in the first of the series of regular regional zone meetings. These have been set up to continue to meet with our Presidents on a regular basis to discuss and understand local issues, provide feedback on what the Association should be doing and also providing feedback on potential new services that the Association may provide.

The issues that regions are facing are pretty common across all regions and the feedback we got on several ‘looking forward’ opportunities was really valuable. So if you have an idea or something that’s bugging you and would like to have it considered or discussed – this is one forum that can help and I would urge you to discuss this with your local President. Their name and contact details are in the members toolshed or can be obtained from our National Support Office.

Grant Florence Chief Executive

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MESSAGE FROM THE CHIEF EXECUTIVE —

MESSAGE FROM THE CHIEF EXECUTIVE

Steel Compliance.

If you don’t check for it, you might as well chuck it.

A factory production once-off assessment is not enough to assure steel compliance.

• As construction professionals using non-compliant steel could be your worst decision.

• E ngineers, certifiers or suppliers have the responsibility and power to refuse the use of unidentifiable or non-compliant steel.

• You manage the risk to human safety, reputation, livelihood and cost.

• Check your steel products’ compliance to AS/NZS Standards and building codes.

• Control your risks of non-compliance and reduce your liability through simple web downloads of ACRS Certificates at www.steelcertification.co.nz

Don’t overlook steel compliance, look into ACRS first.

Call ACRS on +612 9965 7216 email info@steelcertification.com or visit www.steelcertification.co.nz ACRS – The Australasian Certification Authority for Reinforcing and Structural Steels Ltd ABN 40 096 692 545

ACRS – Independent Third Party Australasian Standards Certification & Verification of Reinforcing, Prestressing & Structural Steels Compliance.