The off icial magazine of the New Zealand Certif ied Builders Association
February/March 2019 — Amendments to the Employment Relations Act
Staying on Top of the Job – Managing Fatigue
Wāpu Gables – the Jetty House Pg 22
Contact: 10 Marsh Street, Tauranga 3110 PO Box 13405, Tauranga Central, Tauranga 3141 Phone: 07 927 7720 Freephone: 0800 CERTIFIED Fax: 07 927 7721 www.nzcb.nz ISSN 2463-3305
IN THE MEDIA
Why We Do What We Do
Survey Shows Homeowner Complacency
Last Man Standing
Builder to Business Owner Workshop
Focusing on Mental Health in the Construction Industry
Into the Future – NZCB 2019 Conference & Expo
Halo Guarantee Points to Remember
Estimating For the Small or Large Builder
NZCB Building Contracts
Message from the Chief Executive
IN THE KNOW
WĀPU GABLES –
A STUNNING HOME WITH A UNIQUE NEW ZEALAND HERITAGE
Payday Filing Is Here – Are You Ready?
Amendments to the Employment Relations Act
Taking on an Apprentice… Employee or Contract Labour?
How Do You Protect Yourself When You Pay in Advance?
AROUND THE REGIONS
Whangarei Supports the Pines Golf Club
What’s Your “Why”?
Waikato/Coromandel Golf Day Donation
Another Windy Wellington Golf Day
Building Construction and Services Excellence Awards Dinner
My Top 4 Tips to Tighten the Belt on Your Next Project
HEALTH AND SAFETY Staying on Top of the Job – Managing Fatigue
Shane Ririnui – North Island 30
NEXT GENERATION AST Trust – A Year of Change Ahead
ITAB Apprentice Completions
CERTIFIED PLANS Success Story for Certified Plans Member
Nick Matthews – South Island
Industry Events Calendar
InHouse is the official bi-monthly magazine of New Zealand Certified Builders Association. We’re always on the lookout for interesting stories or build projects that NZCB members have been a part of! To share your story with us please contact Linda. Alternatively, if you are interested in advertising in the InHouse magazine, we have a range of opportunities available to suit every budget. Linda Moody
email@example.com | 07 557 9214
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NZCB NEWS — Dave Whitehead NZCB Board Member
Why We Do What We Do Over the Christmas break I took some time out from running Lifebuilt Construction and Bella Kitchens and Cabinetry in Silverdale, and went camping with my family in the beautiful Northland region. It was great to see that Certified Builders has a significant presence within the region. Having a bit of downtime gave me a chance to reflect on the highs and lows of 2018. Looking back further, to when I first started in this industry, I was reminded of all the reasons why I became a builder. I took up an apprenticeship in carpentry because I like to build stuff, and to work outside with like-minded people. I still love these things, 25 years later. I still love to build! So often we can dwell on the negative, but coming into the new year after a bit of a break is the perfect opportunity to reflect on the year past and remember why we do what we do. Why did you choose a building career? What drew you to it, and what do you still enjoy? Over the last 25 years I have watched as the industry has changed by becoming more regulated and controlled. While this has had its challenges, it has also meant that we have become more professional. Within my own business activities, I have greatly appreciated the services that NZCB have provided to aid in this (i.e. contracts, helplines, and education) and of course the Halo 10 year guarantee. I have had a mull over articles I have read in the past, along with the web-based education that Grant and his team provide. The quality of the content, and the expertise that our association brings to us all, is of significant benefit not just to our businesses but also to our own personal development.
I still love to build!
With all the changes we have seen over the last 25 years, I still enjoy the build. But the thing that keeps me going – aside from the money – is the people that I have worked for and with. The clients’ faces when they walk through their house after we have stood the frames; walking through as we take their dreams from lines on paper or pictures from a magazine (or the dreaded Pinterest montages) and turn them into a physical structure. I’ve had to learn to take those moments forward to keep me going with more “difficult clients”. Looking across our staff, sub-contractors, and suppliers to the relationships that have developed over the years, and the pride I feel when I see school leavers become our apprentices and then become great tradesmen and women – these are the things that make the hard work worthwhile. Moving into 2019, I encourage you to look around you at the great things in our industry and remember that we are helping our communities by building much needed and well-constructed, safe, healthy homes with the peace of mind of the Halo guarantee. I encourage you all to attend your local meetings this year, and support your presidents as they do such an important job in your regions. Keep encouraging each other and sharing your wisdom, experience, and time through mentorship. This is how we build a strong community of tradesmen and tradeswomen. Until next time.
NZCB NEWS — Jason McClintock Group Technical Manager
Last Man Standing This article has been brewing for some time and it feels good to get it off my chest. It was prompted by a notice from WorkSafe promoting upstream duties, and I say good on them for that – but is the message reaching the people who need to hear it most? in the best interests of H&S law, the problem becomes much smaller for those to manage on site.
Let’s look closely at the intent behind the Health and Safety at Work Act 2015. It’s clear the legislation aims to have everybody who’s involved with supply of material and services take on a level of responsibility to ensure safety, not only with production but also purpose and use.
The barriers to making this a reality are similar to that of product supply performance, imported product with different jurisdictions of H&S and performance requirements. This is complicated further with a lack of effective policing both at the border and internally. It amazes me when I stand in front of a rack of 14 brand new circular saws and can’t work out how to attach extraction equipment to any of them. Where was the upstream consideration there?
Theoretically this makes good sense, minimising the impact on the end user and installer. Anybody who has attempted to rip fibre cement weatherboard in the heat of summer with extraction equipment, or PPE up a couple of lifts of scaffolding, will be starting to wonder whether there was any upstream consideration given the degree of difficulty and discomfort involved. You can see where I’m heading with this… And that was exactly the staunch position NZCB took when involved in consultation with WorkSafe on dust. We said: Don’t smash the trades on site to manage the upstream duties of others, I call this approach ‘safety through brute force’. Start at the top with manufacturers and suppliers of products, those who sell machinery and dust extraction, and ask them what they are doing to minimise the risk to the end user. If they are all working
Recently I purchased an orbital sander through a well-known supplier. I asked “How do I attach extracting equipment to this?” The salesperson’s response was “You don’t need that, it doesn’t work anyway. With all the vibration, the dust can’t transfer across to the dust outlet, that’s why you see panel beaters always covered in dust.” Where was the upstream duty with that response? WorkSafe has the power to influence upstream duties and I would like to see more done in this space before putting pressure on the last man standing.
NZCB NEWS — Grant Florence Chief Executive
I am delighted to be able to welcome Karla Farrar to the Association. Karla joined us just prior to Christmas in the position of Communications and Group Services Manager. In this role, Karla and her team will be responsible for all communications to members (including InHouse, InTouch etc), the development and management of services we provide to our members, responding to members’ general queries and the planning and implementation of our annual conference. Karla is returning to the sunny Tauranga District where she grew up and attended college having recently spent a number of years based in Auckland. Prior to joining NZCB, Karla held a number of senior roles including National Marketing Manager for a New Zealand wide automotive parts distribution company and has also owned and managed her own boutique advertising and communication agency. Expertise in communications, a commitment to customers (members), creative skills and an in-depth understanding of social media are all talents that she brings to the Association. When you meet Karla, say hi.
Builder to Business Owner Workshop
Jason McClintock Group Technical Manager
What keeps builders up at night? Cash flow can be a major pain point, which is why we decided to join forces with Andy Burrows, The Trades Coach, and hit the road. We talked to 500 builders across the regions about managing cash flow, margins and business structure. Because there’s simply not the margin in today’s building activity to be making financial mistakes, it’s great to be able to offer NZCB members free access to this level of business information. If you would like a custom package for your business, please be in touch with our National Partner, The Trades Coach, on 027 688 6721.
A big thanks to Strategic Partner Mitre 10 for their support, their regional managers for helping out on the day and Shane and Nick (North and South Island Development Managers) for hosting the events.
AROUND THE REGIONS â€”
Whangarei Supports the Pines Golf Club The NZCB Whangarei region has recently helped out the Pines Golf Club by building a deck for them to form part of a sponsorship deal. For helping the Golf Club out, NZCB Whangarei is allowed to put a sign at each end of the deck frame and also the sponsorship of a hole on the course for the next five years. This was a deal struck between NZCB Whangarei and the Pines Golf club for the inaugural NZCB Whangarei Golf tournament to be held on the 8th March 2019. All the materials were donated by Whangarei ITM, earthworks donated by McKenzie Bobcats, concrete donated by Virgin Concrete and hire equipment donated by Cowleys Hire Centre. md construction built the deck on behalf of the NZCB Whangarei region.
AROUND THE REGIONS —
Waikato/Coromandel Golf Day Donation The recent golf day run by the Waikato/ Coromandel NZCB was a huge success. Funds raised from the day were donated to Hospice Waikato’s Rainbow Place, who do amazing work providing specialist care and support for children, young people and families affected by serious illness or bereavement. A staggering $8,000 was raised on the day from auctions and entries. Pictured right is Hospice Waikato’s CEO Craig Tamblyn receiving the cheque for $8,000 from NZCB Waikato President Mike Hayward. A big thank you to the following businesses who provided auction items to help us raise money: Hampton Downs, Specialized/Cycle Time, Paslode, Bunnings Hamilton, F45 Rototuna, 4Seasons Te Rapa, NZ Golf, Ngaruawahia Golf Club, Hamilton ITM, VR Rotorua, Polynesian Spa Rotorua, Skyline Rotorua
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AROUND THE REGIONS —
Another Windy Wellington Golf Day Our annual NZCB Wellington Golf day was held Friday 1st February 2019 (postponed from 9th November 2018 due to bad weather) at the prestigious Boulcott Golf Course in Lower Hutt. Wellington lived up to its reputation and brought in some gale force winds to contend with, none-the-less everyone had a great day and enjoyed themselves. A massive thank you to our valued sponsors for their continued support of our golf day and donation of great prizes; and to our golf players without whom this day would not have been possible. Advance notice, we have our golf day booked for next year – Friday 21st February 2020 – and hope you will be back on board to join us.
AROUND THE REGIONS —
Auckland Acknowledgements A Big Thank You to Stavros and Patrick I have been asked as senior member of the Auckland Committee to say a few words about two of our committee members. The first is Stavros Evangelidakis. Stavros was my NZCB Auckland Vice President and when I stepped down from the NZCB Auckland President’s role after four years, Stavros took over with a much younger outlook and got on with the job. His passion and dedication came to the front in everything he was asked to do. Stavros is still an active member of the Auckland Committee. The second member is Patrick Donoghue. Stavros asked Patrick Donoghue to be his NZCB Auckland Vice President, at which Patrick accepted. Patrick at this stage was in the role of Financial Secretary, a role in which he carried out with passion and dedication. These two got together and looked at the financial state of the Committee which, at that time, did not make very good reading. They have changed the way finances come into the committee and after four years we now have funds in the bank which allow us to support the region without worry. I must say that they were a great team and, with the backing of the Auckland committee, things have gone ahead. Thank you both. Stavros stepped down from the NZCB Auckland President’s role about eight months ago and Patrick then held the NZCB Auckland Presidential seat.
The Auckland Committee from left to right Grant Boylan, Stavros Evangelidakis, Carol Frisby-Shilton, Patrick Donoghue, Peter Headland, Nick Farrelly
I would like to say, on behalf of the Auckland committee past and present, we wish Patrick and Glorianne all the best in their new adventure together. A BIG thank you for your input Patrick during the last eight years, the door will be always open. Grant Boylan NZCB Auckland Committee Member
These two are what Certified Builders are all about, getting on with the job, doing it right and with passion. Just before Christmas 2018, Patrick called a special meeting to say that he would be stepping down as NZCB Auckland President effective 1st January 2019. Nick Farrelly, his NZCB Auckland Vice President, would take over – another passionate member of the committee. Patrick is leaving the building industry and going into business with his wife Glorianne. Patrick will move into the Real Estate business with his Glorianne who will be his boss. Before Patrick departs the committee, he would like to organise holding a one day event in which builders can obtain the required LBP points. Patrick has been working towards this for some time, so watch this space.
AROUND THE REGIONS —
Building Construction and Services Excellence Awards Dinner On the 28th of November 2018 the annual Building Construction and Services Excellence Awards Dinner was celebrated by Auckland Unitec at the Sorrento at the Park, One Tree Hill reserve. Daniel Fuemana welcomed everyone for the last time in his roll as Head of Building Construction and Services and introduced Tu Nu’uali’itia (ex All Black half back) as the keynote speaker.
Robert Piutau been awarded his certificate for winning the ITAB Apprentice of the year award and tools given to him from the NZCB Auckland committee which were sponsored by Hilti and Summit Doors and Windows and presented to him by NZCB Auckland President Patrick Donoghue.
The evening celebrated the following: • • • • • •
New Zealand Apprentice Challenge Award Unitec Top Apprentice Award NZCCT (carpentry) ITAB Apprentice of the year Award NZ Diploma in Architectural Technology NZ Diploma in Construction Management – CM Major • NZ Diploma in Construction Management – QS Major • Top Bachelor of Construction – Year 1 • Top Bachelor of Construction – Year 2 • Top Bachelor of Construction – Year 3 • Best Performing Student in Construction 2018 • Certificate in Plumbing and Gas fitting • National Certificate in Drain laying • NZ Certificate in Plumbing Gas fitting and Drain laying The awards were sponsored Primarily by Dayle ITM with 21 other sponsors including ITAB and NZCB. We congratulate all participants who were entered in the awards with a special mention of Robert Piutau and Alejandro Mas Ciotakas who both took first place in the Auckland Apprenticeship Challenge held earlier in the 2018 year and represented the Auckland region at the Annual AGM and Conference in May 2018. At the Nationals, Robert took out second place overall and further to this at the Unitec awards won the ITAB Apprentice of the Year with the honour of giving a response speech on behalf of all the award candidates present on the night.
AROUND THE REGIONS —
Shane Ririnui Business Development Manager – North Island
Summer Sun Happy New Year and best wishes for 2019! I hope everyone managed to have some time off, indulge in some good kai (food) and spend well-deserved quality time with the whānau (family) and friends. We are well into the 2019 year now and I hope everyone made full use of the weather and the long days. Already we have had some regions holding Trade Evenings and Regional Events. Regional AGMs are scheduled for March and April so if your region’s AGM is still coming, please pencil it in and make an effort to attend. It’s not about handing out jobs, it’s about having members present and having your opinion heard on NZCB association matters. The first Building Trade Professionals Workshop series has come and gone. If you didn’t manage to attend because we didn’t come to your region, don’t worry, have a chat to your Regional President to see if we’re heading your way for the light version of the BTP Workshop. The Regional NZCB Apprentice Challenge is on Saturday 6 April. If you have an apprentice that meets the criteria, enter them – it’s a great learning experience and, if they win in their region, they’ll be off to the National Final at Conference. If you don’t have an apprentice to enter,
you’re more than welcome to come down and support these apprentices as they battle it out in your region. They are the future of our industry so let’s support them and future strengthen our industry with great builders. NZCB Conference 2019 is scheduled for June in Christchurch. If you haven’t attended or it’s been a while, please consider it this year. If you speak to friends who’ve attended they’ll tell you it’s a worthwhile experience. You’ll discuss shop with your peers, enjoy networking opportunities (with peers, industry partners and suppliers), hear from great industry leaders, sit in on educational workshops, plus there’s a bit of fun thrown in with two evening functions. Think seriously about attending – there’s plenty of time to plan and book for the event. It will be great for you and your business. That’s enough from me – and wow, lots happening around the regions! If I haven’t seen you already on my travels, I hope to see you soon. Ka Kite Ano
AROUND THE REGIONS —
Nick Matthews Business Development Manager – South Island
Brand New Year Ahead! Welcome back to another busy year. Hopefully you managed to have a break and enjoy some well-earned family time over the Christmas break. 2019 looks to be another good one for NZCB and our members. This year, we celebrate 21 years as an association! A birthday milestone in most families that should be commended. Let’s hope the next 21 years are as successful and prosperous for the association – I am sure they will be. The start of the year is traditionally an active time for builders – whether it’s starting new builds, completing existing projects or donkey deep in negotiations with clients and attempting to secure work for the months ahead. Some members tell me they have work booked in for the next 18 months, others are not so fortunate but, in general, the South Island continues to enjoy a growth period in the building industry. Long may it last. Busy times for the industry, means busy times for the association. Already this year we are seeing an influx of new membership applications from builders wanting to align themselves with NZCB. Clearly they can see value in what the association offers its members, but are existing members taking advantage of the services and benefits of membership? If not, it’s time to get along to some of the regional and national events coming up – and there’s plenty happening. I hope you didn’t miss the Building Trade Professionals (BTP) workshops in February, sponsored by Mitre 10 Trade with guest speaker Andy Burrows – The Trades Coach. Andy attended all workshops, presenting on how to make your business operate with better efficiency and be more profitable. What builder doesn’t want that? If you missed it, there will be a webinar available on the members only ToolShed.
Has your apprentice got what it takes? Nominations for the 2019 NZCB Apprentice Challenge are open until 25 March. Does your apprentice have the skills to win? Regional challenges are on Saturday 6 April at eighteen locations nationwide. See the advert on page 14 for eligibility details and how to enter your apprentice.
Daniel Fuemana being presented his Certificate of Appreciation from NZCB CE Grant Florence.
Towards the end of last year, ITAB tutors assembled in Auckland for their annual get together with NZCB staff. This is always a good opportunity to discuss the issues affecting our industry from a training point of view and identify how NZCB and ITAB can help overcome them. We also took some time to recognise Daniel Fuemana with a Certificate of Appreciation on behalf of NZCB. Daniel, who has taken early retirement from Unitec, has been a long-time supporter of NZCB and an advocate for apprenticeship training at technical institutes for over 22 years. We wish him well. See you in the regions.
AROUND THE REGIONS —
Industry Events Calendar CONZTRUCT is for builders, electricians, plumbers, gasfitters and other specialist trades people to further their breadth of knowledge, education and gain a greater understanding of new product technologies. LBP and CPD points are available and...
it’s FREE to attend!
4–6:30pm Pulse Energy Recreation Centre
4–7:00pm Claudelands Events Centre
4–7:00pm ASB Sports House
Auckland South 02 May
4–7:00pm Vodafone Events Centre
To register see www.conztruct.co.nz
THUR 14 MARCH
JUST LAUNCHED! ONE DAY SEMINAR FOR BUILDERS TO LEARN EFFECTIVE PRICING
After eight years alongside small and medium sized residential builders helping price their work as on demand quantity surveyors, we decided it was about time someone stepped up to help educate our guys so they can price their own with less risk. We cover best practice measuring, the connection between measuring materials and calculating labour, how to calculate labour, common pitfalls and items not charged for in P&G, and making your tender letter look schmick and cover you for variations at the same time. You get a fully catered day, with workbook to take away with you. After the seminar you also have 12 months access to a members only website of resources and our Facebook community to ask your questions. For LBPs, CPD points available.
Spaces are limited so don’t delay – check out www.redgroup.co.nz/qs-iq-workshops/ for dates, venues and to register.
Workshops: 1–3pm | Expo 3–7pm
TAURANGA DISTRICTS LBP WORKSHOPS AND BUILDIT EXPO Classic Flyers 8 Jean Batten Drive, Mt Maunganui Increase your product knowledge, LBP points and business growth! • 3 LBP Workshops H NEW H • 35 trade stands • Prize draws • Networking opportunities • Activities to test your skills • $5 entry fee donated to Menzshed NZ • Nibbles provided
For more information visit www.taurangadistricts.co.nz
NZCB NEWS —
2019 NZCB Conference and Expo
‘Into the Future’
14–15 JUNE 2019 | CHRISTCHURCH TOWN HALL This year’s conference and expo will be one of the first events to be held in the refurbished and impressive Christchurch Town Hall, and will be all about how technology is changing the building industry. Don’t miss out on the South Island’s best building and construction event with: A Factory tour that will visit Winstone Wallboards, Formance, Hagley Windows & Doors and Concision
Earn up to 12 Skills Maintenance Points Watch and support your regional apprentice finalist as they compete in the challenges set out for them, including the Great Apprentice Race
12 Educational Workshops to help upskill and educate you on current and relevant information
Network, mingle and make new lifelong NZCB friends 55 trade industry specific expo stands wanting to showcase their products/services to you
Friday night check out one of New Zealand’s most important public art collections, catch up with old/make new NZCB friends at the Christchurch Art Gallery
Let your hair down on Saturday night at the steampunk theme awards dinner
Don’t forget, conference is tax deductible!
KEEP AN EYE ON YOUR EMAILS FOR INFORMATION COMING SOON
Are you up for the challenge?! Applications for the 2019 NZCB Apprentice Challenge are now open! Competitors will be tasked to complete a challenging project for a specific end user within the allotted 8.0 hours. Thanks to ITMâ€™s sponsorship, every competitor will receive a prize pack for participating as well as major prizes up for grabs for 1st, 2nd and 3rd place getters! The Challenge is open to apprentices employed by NZCB builders or enrolled with ITAB. *conditions apply
Have you got what it takes to go all the way?
SAT 6 APRIL 2019
WHERE: ITM STORES NATIONWIDE + selected venues
13 â€“ 14 JUNE 2019 CHRISTCHURCH
To apply for the challenge checkout www.apprenticechallenge.nz
PROUDLY SUPPORTED BY
facebook.com/itabnz *The fine print: Competitors can be at any stage of their apprenticeship, regardless of age or experience and if they are lucky enough to progress to the National Final in June 2019, they must still be a current apprentice. Competitors must be enrolled in a recognised apprenticeship programme and must be up to date with any associated apprenticeship fees or training related expenses.
IN THE KNOW —
Payday Filing Is Here – Are You Ready? Tax is a hot topic lately-- the government has enlisted a Tax Working Group to analyse New Zealand’s taxation structure, and the Inland Revenue is introducing Payday Filing, a significant change to running payroll this April. Many businesses will be affected by this change. Here are some things you need to know about the upcoming shift. While tax might not be the sexiest ‘current affairs’ topic, it affects all of us, and getting it right is very important for anyone who runs a business. From 1 April 2019, employers are obligated to send an employment information schedule to Inland Revenue after each payday. This replaces the current Employer Monthly Schedule (IR348). So if you pay staff weekly, you will need to file the information weekly, possibly increasing your workload. Also, if your business pays more than $50k PAYE in a year, online filing is now mandatory.
With Payday Filing, IRD expects to receive more timely and accurate information. Employers will have two working days after every payday to submit the information online through a new Payroll Returns area in their myIR online portal. There are also extra details Inland Revenue will now require, such as: the employer superannuation contribution tax (ESCT) for each employee; pay period start and end dates; pay cycle (weekly, fortnightly, ad hoc); and payday date. The government is also wanting additional information on new and departing employees. Employers may find it easier to use payroll software, because this allows them to automatically send information to Inland Revenue at the same time they run payroll. Payroll intermediaries will do all IR filing on your behalf (and also pay your employees, update leave balances, and submit payslips, etc). For more info on payday filing visit the IRD website www.ird.govt.nz, go to the Businesses & employers option, then across to Employing staff and finally down to Payday filing. Christina Bellis, CEO at Thankyou Payroll Thankyou Payroll is an online payroll software system that provides payroll and PAYE filing services to businesses across New Zealand. They are a business based in Wellington and Dunedin that manages all the complexities of payroll entitlements, leave and taxes so you can get on to doing other important things. Visit their website www.thankyoupayroll.co.nz to sign up for free and get started immediately by calling 0800 895 146.
NZCB NEWS —
Points to Remember For all updated Halo documentation, check the members only ToolShed on the NZCB website as older documents are being phased out and may be rejected If you have new office staff we are happy to contact them and go through the Halo process with them Only send one application or CPC per email – the only exception being if you are sending a CPC and Transfer Request Form for the same contract If you have downloaded and completed a building contract from the NZCB website for a residential build with a contract price over $30,000 including GST, there is no need to email through an application as this happens electronically overnight If your contract is not starting within a month of downloading a contract which generates an automatic Halo application (see criteria above) let us know to suspend processing as soon as possible by emailing firstname.lastname@example.org or replying to the confirmation email you receive If your application has been processed and your Halo invoice payment becomes overdue because you’re still waiting on title or consent, contact us as soon as possible by email or phone Contract values should be for the build price only and should include GST Halo CPCs must be submitted to complete the build stage of the contract and start the 10 year defects period Always check Lot and DP numbers on CPCs and amend them if required – this identifies the property that the guarantee applies to, incorrect information can lead to unnecessary delays at claim time Please quote your policy number on any communication or documentation sent through to the Halo team
Login to the members’ ToolShed for the latest documentation including the Halo application, CPC and premium and excess chart. For any queries contact the Halo team at BrokerWeb Risk Services on 0800 644 444.
NZCB NEWS —
Statutory Liability Statutory Liability Insurance is designed to help protect you and your business for fines or penalties imposed by the courts and the costs of defending yourself for unintentional breaches of most laws in New Zealand. All Statutes of Law are covered by this insurance, other than Criminal Acts. The recent introduction of the Health and Safety at Work Act is an example of increased exposures faced by Companies, Directors and Senior Management. Whilst fines cannot be covered under this act, reparations ordered are covered along with legal defence costs. If a person is injured on a worksite, WorkSafe will investigate and report if the Employer has been negligent in not providing a safe work place. If you are found guilty of this, you can face large fines as well as being ordered to pay reparations to the injured employee. Builders and Tradespeople may also have an exposure under the Resource Management Act. For example, if an employee accidentally spilled some paint or chemical that washed into a nearby stream and killed all aquatic life, you would likely incur fines as well as legal costs. In late 2014, the Sentencing Amendment Act was introduced. New Zealand Courts can order offenders to pay additional financial compensation over and above what someone may receive under ACC, including loss of current and future earnings from a personal injury.
The REDi Liability package includes cover for fines ordered payable by the Building Practitioners Board which have arisen from an action under the Building Act. If a young employee was seriously injured on a worksite due to negligence of the employer, the court could award payments to the employee for a number of years if they are no longer able to work. This could amount to hundreds of thousands of dollars over 40–50 years. The REDi Liability package also includes cover for fines ordered payable by the Building Practitioners Board which have arisen from an action under the Building Act. It is recommended that you review your current Liability Insurances to ensure that you have cover included for Statutory Liability Insurance with a minimum Limit of Indemnity of $1,000,000. It is recommended that you discuss your individual situation with your Insurance Broker.
Your REDi Builders’ Insurance is administered by BrokerWeb Risk Services Ltd. For a free review of your existing portfolio, you can call Brokerweb Risk Services on 0800 644 444.
IN THE KNOW —
Employment lawyers Jacobson and Marshall - The Specialists
Amendments to the Employment Relations Act On 11 December 2018, the Employment Relations Amendment Act 2018 was given the Royal Assent and became law. The Employment Relations Amendment Act 2018 amends the Employment Relations Act 2000 in a number of respects. Although a few provisions (mainly relating to union access to workplaces) came into effect immediately, most of the provisions do not come into force until 6 May 2019. Some provisions (relating to discrimination in relation to union activities) do not come into force until 11 June 2019.
Probationary period clauses must be specified in writing in the employee’s employment agreement so employers who employ 20 or more employees will need to update their employment agreements before 6 May. Employers who employ 19 or less employees will helpfully still be able to use trial periods.
Rest and meal breaks From 6 May 2019, all employers will have to comply with the legislative changes in relation to rest and meal breaks. The number of breaks and those to be paid and unpaid will now be prescribed with reference to duration of the employee’s work period. If the employer and employee cannot reach agreement about the timing of the breaks, then the timing will also be prescribed.
Two of the most significant changes relate to trial periods and rest breaks/meal breaks. In essence, the legislation is reverting to what it was in 2008 (for trial periods) and 2015 (for rest and meal beaks).
It will be mandatory to comply with the rest and meal break provisions. The only exemptions from compliance are for an employer engaged in the protection of New Zealand’s national security in certain circumstances, and for an employer engaged in an “essential service”, again in certain circumstances. The “essential services” are listed in Schedule 1 of the Employment Relations Act and include services such as the supply of electricity, water, sewage disposal, fire and emergency services, some port operations, ambulance, hospital care institutions, prison services, Police services and others. Employers who are listed in Schedule 1 are able to reach agreement with their employees about rest and meal breaks being taken in a different manner than that prescribed for other employers. However, if agreement cannot be reached, the Act provides for compensatory measures to be provided to the employees.
Trial periods From 6 May 2019, employers who employ 20 or more employees will no longer be able to include trial periods in their employment agreements (being the trial period clauses which, if properly worded and entered into, prevent an employee from pursuing a personal grievance for unjustified dismissal if employment is terminated in accordance with the trial period clause). Such employers will still be able to include the older style probationary clauses which have remained provided for in the Employment Relations Act. However, the significant difference with probationary period clauses is that neither the fact of the probationary period clause nor what is specified in it, affects the law of unjustifiable dismissal. An employee can therefore still pursue a personal grievance if employment is terminated in accordance with a probationary period clause. With a well worded probationary period clause, an employer can generally shorten its usual warning type procedures during the probationary period and unlike trial periods, a probationary period clause can provide for extension for a further period after its expiry. However, larger employers are now going to have to follow more process steps and to make a much more measured assessment before terminating an employee under a probationary period clause.
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.)
Find out more at alt herm.co.nz
IN THE KNOW —
Taking on an Apprentice… Employee or Contract Labour? It’s that time of year when many builders are hiring new staff to increase their capacity as they prepare for impending workloads and commitments made to clients. Many may take on a school leaver, pre-trade student or perhaps an older, more mature person - potentially leading to the offer of an apprenticeship. Once the trial period has ended and time has come Take the legal test and see what’s best to formalise the apprenticeship, do you employ the apprentice, or do you hire them on contract? The debate is a hot topic within our industry!
Employee Vs Contractor Considered by many to be standard industry practice, apprentices who are employees benefit by law to entitlements, which include annual leave, sick days, the right to take out personal grievance claim, earn at least the minimum wage and receive KiwiSaver. All of these are formalised within an employment contract and agreed to by both parties. On the other hand, apprentices on contract deemed to be self-employed are not covered by most employment laws. This means they don’t get paid leave and must pay their own tax. Technically, they should be invoicing their principal (the other party) who has engaged them to perform services under contract for payment. Not forgetting that if they earn over $60k per year they have to be GST registered. Whichever side of the fence you sit on, both sound perfectly fine and dandy. However, there’s an argument and rightly so, that an older person with worldly experience is perfectly capable of creating invoices for payment. They’re also able to earn an income and put aside a proportion of it for payment of things like provisional tax, ACC levy, etc. So, how do you decide which way to go?
The Ministry of Business, Innovation and Employment (MBIE) website provides four legal tests to determine whether an individual is either an employee or contractor. The purpose of these tests is to ensure the rights and responsibilities of both parties are upheld. In each of the tests you apply your situation and decide what the nature of your relationship is with your apprentice. MBIE points out that no single test determines an outcome, and that often a combination of all four could be required.
Apprentices are not expected to have any business-related insurances to cover breaches of their responsibilities if they make a mistake. In my humble opinion, the legal tests best suited to reaching a conclusion are the Control vs Independence test, followed closely by the Integration test. The outcome of these two tests can be then reinforced by the Fundamental/economic reality test. Specifically, under the Control vs Independence test an apprentice has no control over his or her start and finishing times or the hours they must spend at work. They are expected at work daily and their availability is dictated to them. An apprentice is subject to supervision and (hopefully) follows direction by a supervisor, normally a foreman or their employer. Under the Integration test an apprentice is not expected to provide all their own tools, most big-ticket items are provided and available for all to use. They become integrated into a team environment and work culture. Weekly wages are not paid as a direct result
IN THE KNOW —
Nick Matthews Business Development Manager – South Island
They can make themselves unavailable on certain days and decide how much time is spent at work. Contractors can engage another person to replace them at work, either by finding another person or employing their own staff. Contractors provide all their own tools and are required to complete the job at their own expense. Similarly, they pay any costs like the hiring of plant and equipment to finish a job they have contracted to complete. A contractor may be paid by results but can carry the financial risk if a job goes bad. Normally they may provide a guarantee to cover any breaches of their responsibility.
Stay on the right side of the law
of their outputs. They would normally wear a company branded shirt/logo and would expect to be reimbursed for expenses like using their personal phone for work related calls. When applying the Fundamental/economic reality test, an apprentice is generally paid a wage or salary and must be paid at least the minimum wage for all hours worked. They are not registered for GST but are subject to PAYE income tax to appease the IRD. Under this test, apprentices mainly work for the same entity for most of their apprenticeship training. Apprentices are not expected to have any business-related insurances to cover breaches of their responsibilities if they make a mistake.
What defines a contractor? Contractors generally have more control over their own availability. They set tasks for themselves to achieve without supervision and direction. When a contractor commits to a job they generally have more discretion.
Keep in mind these three legal tests and ask yourself: do I consider my new apprentice an employee or a contractor? If you get it wrong it can constitute what’s known as a ‘sham contracting arrangement’. This happens when an employer deliberately attempts to disguise an employment relationship as an independent contracting arrangement. This usually happens because the employer is trying to avoid their responsibilities and save themselves some dollars… If discovered, the Employment Relations Authority will not support a sham contracting agreement and the employer will have to pay the employee their entitlements. While there has been no case law in New Zealand to set a legal precedent, additional penalties can also be awarded including a fine and being liable for any legal fees etc.. Taking on an apprentice? Make sure you’re on the right side of the law.
For further information visit: www.employment.govt.nz/starting-employment/who-is-an-employee/difference-between-a-selfemployed-contractor-and-an-employee/ www.legislation.govt.nz/act/public/1992/0055/latest/DLM6091992.html?search=qs_act% 40bill%40regulation%40deemedreg_Employing+an+apprentice_resel_25_h&p=1
Wāpu Gables – The Jetty House As featured on Grand Designs NZ, 10 Oct 2018!
Nestled harbourside in Mangawhai, Wāpu Gables is a stunning new home that whispers of a unique and proud New Zealand heritage. Incorporating beautiful recycled building materials from a number of locations around the country, Wāpu Gables is a true celebration of past and present. Exotic materials included pre-World War II bricks from Queen Street’s iconic ‘Real Groovy Records’ store, 100 year old hardwood that once held up Tug Wharf along Wellington City’s waterfront, 30 year old structural metal from Waihi, originally a holding tank for cyanide. The entire project required precision and craftsmanship from Smith Construction, and the result couldn’t be better.
Modelled on a contemporary boatshed theme, the client brief called for sensitive architecture that would blend into its coastal environment, along with a distinct industrial theme. Architecturally designed by Frank Stanton of Dream Planning Ltd, the three-bedroom home appears as four simple pavilions, however on close inspection, each one contains a number of complex interior and exterior steel structures - designed to support the extensive use of recycled and unique materials.
Challenges Smith Construction both applauded, and at times cursed, working with old reclaimed timber. The project called for patience, attention to detail, and plenty of tool sharpening!
Collaborative process Throughout the project, Smith Construction collaborated daily with the client, architectural designer, and Mike from Big Woodies. We believe regular and open communication was the success factor behind this luxurious home. “Smith Construction is our preferred local construction company. Their professional attitude and attention to detail has enabled them to perfectly realise the vision of this complex home.” Architectural Designer, Frank Stanton, Dream Planning Ltd.
We also thank our suppliers and contractors who helped pull together this exciting project, including ITM Mangawhai, NuWall, Emerson Electrical, Carter Roofing, Wilson Plumbing, Polished Concrete Limited, Hugh Jones Tiling, North Glass, DC Bricklayers, Sweeney Painters, Parahaki Engineering, Mangawhai Engineering, Phoenix Windows & Doors, Prestige Doors & Gates.
Fortune favours the bold “We congratulate our clients for having such a bold vision. Every single feature in this design was vital towards the end result. The trusses alone carried a 10-tonne weight. These lofty giants straddle both the main living area (the Great Room) and form a roof to the ocean-facing courtyard. Exposed steel beams and framing were crucial in a structural sense, but also sit perfectly with the industrial theme. The overall home is incredible, it pushed our expertise and craftsmanship, and the results show.” Smith Construction founder, Nick Smith. Recycled rimu sourced from demolished buildings has brought the boatshed vibe to life and has been heavily used as internal sarking and feature sliding doors throughout the home. Vertical weatherboard cladding with random profile widths, further enhances the timber boatshed theme. Formed from aluminium, the exterior cladding offers longterm protection against the salt-air coastal environment. Thoughtful placement of windows, bi-folding doors, and shutters maximises the water views and captures sunlight, but also shields the home from intense summer heat.
To support a family who love to entertain, large barn doors slide back to reveal a spacious scullery linked to the Great Room kitchen. Not one inch of the rough-hewn recycled timber has been wasted, with offcuts applied to form decking around the house and embedded into the polished concrete courtyard floor. The master bedroom offers expansive views of the waterfront and is a special place for our client to unwind in an old cast iron bath sitting on a handcrafted plinth. A guest bedroom, bunk-room and large double garage completes the picture of a majestic beach house befitting of its coastal location.
From the client: We have just completed a build in Mangawhai and found this to be (unbelievably) a very pleasant and fun experience. We attribute this to the team of builders from Smith Construction. “We are not novices in the building game, we have built and renovated previously so we knew what to expect. What we didn’t expect was how easy Smith Construction made this whole process given building is a mine-field of consents, compliance, safety rules, council and engineering requirements to say a few! We worked as a team on all aspects. There was mutual respect for our ideas which sometimes were a little unusual, but not once did they say it couldn’t be done. The boys made constructive suggestions to get our requests realised. Nothing was too much trouble and given the upcycled materials used, the quality of workmanship was second to none. Having enjoyed the experience we would build again, and we would not hesitate to work with Nick and his team. We welcome contact to discuss our experience.” Patty and Geoff Coley
IN THE KNOW —
How Do You Protect Yourself When You Pay in Advance? By Geoff Hardy of Auckland law firm Martelli McKegg Payments in advance (otherwise known as deposits or down-payments) are common in the construction industry. Sometimes they are needed because building materials have to be ordered and the supplier insists on some kind of payment up front. Sometimes the builder has to do a lot of preparatory work like pricing, design, or consent applications, and he wants to be sure he is going to be reimbursed once that is done, in case the project doesn’t proceed. Under the Certified Builders contracts there is a deposit payable that is not even the first instalment of the contract price at all; it is a form of security that remains in place throughout the project to ensure the customer never leaves an invoice unpaid. There is an obviously risk when you are paying in advance, that what you won’t end up getting what you have paid for. In extreme cases that could happen if the builder or fabricator or building materials merchant (in this article I call them the “supplier”) simply takes the money and runs. In more common situations it could happen if the supplier has a stroke or a heart attack and there is no-one else in the company with the necessary skills or expertise to do the job. You would like to think that they would refund your money in that instance, but it is surprising how often that doesn’t happen. And, of course, it is never going to happen if the supplier has gone bust. Although the risk may be small, it can be financially crippling if the down-payment is large enough and you are faced with the prospect of having to pay it all over again to another supplier.
Neither of those scenarios is an exciting prospect so understandably people look for ways to protect themselves from the risk. There are a couple of approaches you can take. One is to make sure you get your money back if the supplier doesn’t deliver. But that just puts you back to square one, having to find a substitute supplier, when you are already way behind schedule. The second option is to at least get hold of the raw materials and the partially-completed work, so you could hand those over to the replacement supplier, and offset the amount that you owe for those things against the down-payment you have already made. Of course that assumes that the raw materials and partiallycompleted work are worth having, and the replacement supplier has the technology licences, the plant and equipment, and the expertise to finish the job.
If the original supplier is simply mucking you around, then you can go to court to either force them to honour the contract (in which case you will eventually get what you ordered) or sue them for damages (in which case they owe you money instead). But either way, that involves expensive and protracted litigation with no guarantee of success, against a supplier who might well go bust in the end, so you would generally be better off just terminating their contract, grabbing what you can off them and finding a replacement supplier. If the original supplier has already gone bust, then neither of those options is available to you because you are not allowed to sue them (at least without the liquidator’s consent) and you simply have to hope that you get something out of the insolvency after the secured and preferential creditors have had their fill.
You might want to arrange your own insurance policy to cover the risk that one of your down-payments might be lost. Getting your money back can be achieved in a number of ways. The standard approach is to have a third party promise to repay you if the original supplier defaults. For example, you could insist on a personal guarantee from one or more of the directors or major shareholders of the original supplier. Or you could insist on a bond from a bank, or an indemnity from an insurance company. All those options depend on you having enough bargaining power to extract those concessions. When the supplier
IN THE KNOW —
The only downsides to this arrangement are that it involves a third party who will want to document the arrangement and to be paid a fee, and it means that the supplier can’t use the money to buy raw materials that he has to pay in advance for. Unfortunately that requirement is all too common, particularly with expensive building components such as designer joinery, appliances, or finishes that are frequently obtained from overseas.
is in high demand or everyone has plenty of work because the construction industry is in a boom cycle, you may be out of luck. In that case you might even arrange your own insurance policy to cover the risk that one of your down-payments might be lost. A classic example of such an insurance policy is the Halo Guarantee that Certified Builders provide to their clients on all residential projects costing $30,000 or more. That protects the clients against the risk that they might have paid more than they received in return. In fact it is the answer to any concerns expressed by the client about the deposit they are required to pay that the builder retains throughout the project and applies towards payment of the final invoice. If the builder goes bust or gets run over by a bus or elopes to Venezuela with his mistress, without having refunded that deposit, the Halo Guarantee is there to ensure the owner doesn’t end up out of pocket. If you can’t get a guarantee or a bond or an insurance policy to protect you in case your down-payment is lost, then a compromise arrangement is to at least put the money somewhere safe so that you can retrieve it if the supplier becomes insolvent or goes out of business before completion. For example, the money can be held in trust by a solicitor or an escrow agent who is under instructions to pay it to the supplier if all goes according to plan, but to return it to the client if the supplier defaults. That at least gives the supplier the comfort of knowing that the money is safe and won’t be withheld for capricious reasons, and it gives the client the comfort of knowing that it is not at risk.
I mentioned above that instead of just getting your money back you might prefer to get hold of the raw materials and the partially-completed work. To do that you need to show that you, not the supplier, own the items in question, or you have some other security interest in them that prevails over the rights of the supplier’s liquidator or other secured creditors. Under our sale of goods laws you might be able to establish that ownership has already passed over to you. If not, then you can accelerate the process by agreeing with the supplier that you have ownership of the items as soon as you pay in advance for them. Some of our standard-form building contracts such as NZS 3910 already provide for such an arrangement (it is called an “agreement for off-site materials”), but it involves getting the supplier to sign a separate contract, it usually requires you to register your interest on the personal property securities register, the supplier’s bank might have to consent to the arrangement, and it comes unstuck when the supplier doesn’t own the items in question because ownership of the raw materials is still retained by its own suppliers. If all that sounds too complicated then you might just consider transferring the risk of loss of the downpayment to the building owner, rather than the head contractor. If the building owner agrees to this then it is simply a matter of ensuring that the head contract reflects this arrangement. And once again you would need someone like us to help you do that.
Geoff Hardy is a partner in the Auckland law firm Martelli McKegg and is a construction law specialist. Contact Geoff on (09) 379 0700 or email@example.com. This article is not intended to be relied upon as legal advice.
Rylock proudly sponsors The Ultimate Reno An Ultimate Vision in Windows and Doors
Rylock® Helps Transform “Ultimate Reno” Home from Disaster to Designer What could possibly turn an old Auckland bungalow sinking in two directions and labelled a “catastrophe” on national television into a designer family home? Hard work, dedication and, most importantly, the right team. In 2018, “The Ultimate Reno” aired on TV3, featuring previous “The Block” stars Caleb and Alice tackling their toughest reno yet. Over eight episodes the couple partnered with contractors such as Rylock® Windows & Doors to transform a homeowner’s worst nightmare into a house that, during the final episode, was estimated to be worth well over $2 million.
heart of winter these doors seal tight to keep out the rain and cold while locking in heat, then in summer their panels almost completely stack away to create huge amounts of indoor-outdoor flow. Throughout this home a variety of other windows and doors are used, including more stackers, French doors and beautiful casement windows, which can be found in the bedrooms and bathrooms - so even here there are gorgeous views.
There are many great features in this house and all the teams, from engineering through to landscape design, worked hand in hand to make the dream a reality. But one of the standout elements anyone will notice as they first step foot inside is the view. The house, situated on a grassy slope, looks out across a reserve and has three sides of gorgeous coastal scenery. Celebrating this was a key architectural objective, and one Rylock worked hard to achieve using expansive, modern window and door systems supplied by Altus Windows. Framing these stunning panoramas is the Altus Windows Atlantic High Performance suite, a system especially designed for situations like this. The Altus Windows Atlantic suite is capable of reaching heights of up to 3.8 metres without sacrificing strength, allowing for a wide range of designer installations where views and weathertightness are equal priorities. The living room in particular is bathed in natural light throughout the day thanks to its use of Altus Eurostacker® doors, which offer the perfect balance of high performance against coastal weather conditions and super-wide openings that Caleb and Alice desired. In the
The multifaceted role performed by Rylock® helped bridge the gap between dream and reality for Caleb and Alice. The team were advisers during the early design stages, recommended specific products and explained why they were chosen, and installed the units to ensure a quality service start to finish.
For more information visit www.rylock.co.nz/blog/2018/7/the-ultimate-reno-2018-a-vision-in-windows/
HEALTH AND SAFETY —
Staying on Top of the Job – Managing Fatigue With better weather, daylight savings, and a shortage of experienced builders across the country, it can often feel like there aren’t enough hours in the working day. If you’ve got lots of jobs on the go, it can be tempting to push through and work much longer hours. But ignoring the signs of fatigue in yourself and your workers can be a real hazard. So with that in mind, here’s some handy tips from the team at Site Safe to help you stay on top of the job.
Signs someone may be fatigued
What is fatigue? Fatigue is more than feeling drowsy. At work, fatigue is a state of exhaustion which can be both mental and physical. Fatigue reduces a person’s ability to do their job safely, and decreases performance and productivity.
irritable, uncommunicative, frustrated, disengaged, late for work or doesn’t show up
slurs speech, rubs eyes, yawning, appears tired
cuts corners, takes risks, clumsy, forgetful, makes mistakes, poor decision making and judgement
loses the big picture, misses warning signs, has a fixed gaze, blurry vision, lack of focus
Fatigue is often caused by a number of combined factors, including: • • • • • • • •
the demands of work work scheduling and planning environmental conditions dehydration: symptoms of which include cracked lips, flushed face, dizziness, cramps or headaches) drugs/alcohol/medication the type of work activity: such as a noisy environment or using vibrating tools poor diet, a lack of exercise, disrupted sleep poor emotional wellbeing or stress.
Identifying fatigue as a risk To figure out if fatigue could be a hazard at your work, it’s vital to recognise mood, alertness, sleepiness, task performance and focus. To assess the fatigue risk, ask yourself and record: • • • • •
Who is likely to be at risk of fatigue and where? How often is fatigue likely to occur? What degree of harm could it cause? Are any existing control measures effective? What action should be taken to control and monitor the risk of fatigue in yourself and others? • How urgently is the control needed?
HEALTH AND SAFETY —
How much sleep do I need?
Work scheduling and planning: • Take regular breaks and consider extra breaks if the work is demanding. • If you need to work longer hours, consider staggered start and finish times, and longer breaks and periods off work. • Think about how you schedule your work – a person’s ability to be alert is not constant throughout the day. For most people, low points occur between 3.00am and 5.00am, and between 3.00pm and 5.00pm. During these times, try to avoid doing tricky or dangerous jobs. • Monitor and place limits around overtime – avoid incentives to work too many hours. If night work is required, limit the number of night shifts in a row that your employees can work. Also place limits around shift swapping and oncall duties – regular sleeping patterns help prevent fatigue. • Try to create a positive environment with good relationships.
You should aim for between 7.5 to 8.5 hours a night. To work out your optimal sleep time, try the following on your next holiday:
Mental and physical demands of work: • Use the right tools and resources for the job. • Use low-vibration hand-held tools and where practical install low-vibration seats in machinery. • Rotate tasks between workers. • Stay hydrated and avoid drinks with caffeine. • Make sure workloads and deadlines are realistic. Environmental conditions: • Avoid working during extreme heat or cold. • Provide shelter and facilities for breaks.
• Put your alarm clock away and wake up naturally for at least two days to overcome cumulative sleep loss. • Then for the next three or four days, write down how many hours you sleep. • Divide the total number of hours you have slept by the number of days – this is how much sleep you need to maintain optimal alertness, performance and wellbeing.
Get the whole team on board Develop a fatigue policy which includes details on the maximum shift length, average weekly hours, and travel time. Make sure everyone is aware of the policy, how to recognise fatigue and how to report risks and incidents.
For more information, check out the fatigue guide on the Site Safe website at www.sitesafe.org.nz Site Safe is a national not-for-profit membership organisation that promotes, supports and inspires a culture of health and safety in the New Zealand construction industry.
STRUCTURAL BRACING External wall bracing and structural connectivity
COMPLIANCE BRANZ Appraised 15 year product warranty
RESISTANT TO DAMAGE FROM MOISTURE
Built-in water repellent barrier
GOOD DESIGN IS OBVIOUS
GREAT DESIGN IS TRANSPARENT Building a great home, one thatâ€™s built to last, is the result of good building practice and the very best building products. Products that are specifically designed to perform at a higher level to traditional building paper.
180 DAY EXPOSURE Withstand up to 180 days exposure without warping or shrinking
EASY TO INSTALL Quick installation, gun nail and eliminate top plate strap
RAB Board not only has resistance to damage
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to install and allows early close in. RAB Board wont shrink or warp, so it results in a flatter more professional finish.
PERFORMANCE THAT WORKS jameshardie.co.nz RBJH0002B
IN THE KNOW —
What’s Your “Why”? It’s a biological process. People make many decisions based on gut feel that they perhaps find hard to put into words, and then justify it by looking at the facts and figures. So says Simon Sinek, thought leader and author of the book “Start With Why – How Great Leaders Inspire Everyone to Take Action”. If you haven’t seen his 20 minute TED Talk on the subject, I strongly urge you to look it up on YouTube or www.TED.com and watch it a couple of times. It is one of the highest ranking TED talks of all times. The basic premise is that your role as the leader of your company is to establish what the core reason for WHY you do what you do. And it’s not money – that is the result of getting it right. The core WHY is the deeper reason for providing your services that will connect at the emotional level with your ideal customer. By connecting with people who share your WHY (or Mission or Purpose to use other terms) you are far more likely to be able to convert them to be a client, and perhaps also at a premium in price. You will still need to provide logical support for this initial reaction, but it becomes a far more natural process, rather than ramming facts and figures down a prospective customer’s throat and hoping for a favourable decision.
“People don’t buy WHAT you do, they buy WHY you do it” – Simon Sinek So, why is biology important here? Think about it. Have you made decisions in the past based on your gut feel and have struggled to clearly express that in words? “I don’t know, but it just doesn’t feel right”, or similar. What is at play here is your Limbic brain; the central ancient part of your brain that is responsible for decision making and for feelings, such as loyalty and trust, and it has no capacity for language. The modern Homo Sapien part of the brain is where the language and comprehension is carried out and has a huge capacity for facts and figures, but does not drive behaviour. Slick marketing and sales will definitely get you more customers, but if you want truly loyal customers who will be your advocates in the market and come back to buy again, you are better served first through inspiration that connects directly to the Limbic brain. The same applies when attracting team members.
just as likely to leave you if someone pays them a dollar more. You want to attract people to work for you who are inspired by your WHY and share your philosophy. That type of team member is way more likely to be loyal to you, work harder and will help you attract more of the same type of people as you grow. Establishing your WHY is one of the foundation stones of your business. For help in doing this get in touch and I will send you a workbook to help you discover yours.
PS. My WHY is on my website entitled My Job on This Planet: “My job on this planet is to help re-balance the risks and efforts put in by owners of independent tradie businesses with the rewards they receive. To help owners get unstuck from where they are now, to where they want to be. And do this as cost-effectively as possible.”
If you want people to work for you, pay top dollar and you can probably attract new team members. Trouble is, if they have come to you for the pay rate only they are
Andy Burrows – The Trades Coach. Still unsure or have questions? Email me at firstname.lastname@example.org or phone my office on 09 912 1901.
NEXT GENERATION —
A Year of Change Ahead
Brian Dillon Chairman AST Trust
I trust the new year has started well for you all, and that, despite recent suggestions in the media, 2019 will be another fruitful one for you and your business. Apprentices across the country continue to benefit from the hardship grants supplied by AST; in 2018 a total of more than $7000 was provided by way of grants to 10 apprentices. Many of these have expressed their gratitude at the support, which is pleasing to see. For a lot of these apprentices, a grant is the difference between being able to attend a block course or not, or being able to eat more than two minute noodles while they are there. The grants aren’t (and shouldn’t be) the only support mechanism for apprentices, and it’s pleasing to hear of employers who commit to providing support to their apprentices, often in the way of tools, gas money, or time off for study. By the time this goes to print we may be more informed about the government’s position on the ITP roadmap (review outcomes, plans). They have been very vocal about the need to overhaul the vocational training sector, including polytechnics, to ensure ongoing viability and industry relevance. It’s pleasing to be part of the training sector which continues to receive generally positive feedback from industry about the quality and capability of graduates.
I read with interest the Minister’s admission that Kiwibuild may not meet the June 2019 targets, as it’s clear that regardless of the means by which our buildings are constructed there is, and will continue to be, demand for skilled people to plan, manage and construct them. Support for those trainees in an educational and pastoral sense will also continue to be important, and the ITAB Advisory is intended in part to be a key link between employers, training providers (polytechnics) and trainees to produce a highly capable workforce.
NZCB NEWS —
NZCB Building Contracts Which contract do I use? Fixed Price+ This contract is used when an aspect [or all] of a project has a quoted element to it. Should there be variations to the quote then this contract allows for flexibility while still maintaining payment security. The deposit is held by the builder during construction and balanced at the time of final invoice.
Small Works and Alterations This Contract is intended for use where the building work is expected to be of such short duration that the builder will only need to invoice the owner once. The builder has the option to select whether the works will be charge up or a fixed quote. Where multiple invoices and payments are contemplated a more comprehensive contract is recommended.
Cost and Margin This contract is used when the total price payable for the building work is not fixed, specified, or known at the time of entering into the contract. Instead, the progress payments and the final contract price are to be calculated by reference to the actual costs incurred by the builder in carrying out the building work, plus a margin for the builder’s administration, overhead and profit.
Online Contracts are so simple to use, raise your professionalism and give it a go! • Enter the job information on an easy step-by-step template • Save and close at any time in case you need to come back later • Email the draft contract to your client so they can read it over before signing • Print the completed contract and drop it round to your client or simply email it to them • NZCB can personalise the front cover of the contract with your company logo! If you would like some guidance on using the Online Contracts please call Georgia on 0800 237 843 ext 700.
Labour Only Fixed Price+ This contract should only be used when the overall management of the project (including the procurement of the materials, the hiring of the contractors, and the coordination of their activities on site) is being performed by the owner or a specialist project manager appointed by the owner such as an architect, engineer or another builder. Use this contract for labour only work in which you have submitted a fixed price quote. The contract allows for the supply of incidentals (low value) and variation rates and margins are also agreed upon.
A sample of each contract is available on the ToolShed For a step-by-step guide from your first meeting with the client to handing over the keys, head to the Building Compliance page on the ToolShed
NZCB NEWS —
Most contracts are available to complete and purchase online, and all are available to purchase as hard copies
Renovation Cost & Margin Similar to the standard Cost and Margin contract except for three main differences: First, the Builder only gets possession of that part of the building he is working on. Secondly, the Owner always takes out the contract works insurance. Thirdly, if you are charging on the basis of having reached defined stages of completion of the works, those stages have been left blank so that you can fill them out to fit the requirements of the project. Charge up situation, whereby hourly charge out rates of the builder and contractors are agreed upon, along with a margin on materials and services supplied by or to the builder. Flexible payment options to suit the builder.
Renovation Fixed Price+ Similar to the standard Fixed Price+ contract except for three main differences: First, the Builder only gets possession of that part of the building he is working on. Secondly, the Owner always takes out the contract works insurance. Thirdly, if you are charging on the basis of having reached defined stages of completion of the works, those stages have been left blank so that you can fill them out to fit the requirements of the project. This contract is to be used when an aspect [or all] of a project has a quoted element to it. Should there be variations to the quote then this contract allows for flexibility while still maintaining payment security. The deposit is held by the builder during construction and balanced at time of final invoice.
Cost & Margin Building Contract
0800 237 843 | nzcb.nz
0800 237 843 | nzcb.nz
Small Works & Alterations
This contract is intended for use where the builder has been asked to do some preliminary work in connection with a proposed building project, either prior to the project commencing, or as part of a feasibility study to determine if the project will go ahead.
0800 237 843 | nzcb.nz
Spec Build This Agreement is to be used when the builder is building a spec home and when the builder; owns the land on which he is building something, and, sells the land to someone before he is finished building. These terms should NOT be used when the builder intends to sell the land and commence building work after.
Don’t forget, it’s mandatory to take out a Halo Guarantee on all residential work over $30K
Need help with your building contract? Don’t forget your FREE NZCB Helplines. You can get 20 minutes of free advice with either of the below: • for technical questions call Peter Degerholm 03 443 6365 • for legal questions call Geoff Hardy 09 379 0700
NEXT GENERATION —
INDUSTRY TRAINING ASSOCIATION BUILDING
New Zealand’s Most Employable Apprentices
ITAB Apprentice Completions Ara Institute of Canterbury Aaron Stevens
CP Construction Limited
G D Gardener Builders Limited
Robertson Building Canterbury Limited
TF Gray Builders Limited
B M Construction Limited
Brewster Building Limited
Metzger Builders Limited
Scott Van Der Zee
Ironstone Construction Limited
Shaun Bradley Builders Limited
Trade Assist Limited
Colin Thom Builder Limited
G B Construction
Gray Brothers Builders
Yannich Noa Siaosi
Hawkins South Island Limited
Joshua Dexter Mitchell
AEM Builders Limited
Nelson Marlborough Institute of Technology (NMIT) Hayden Wilkinson
Brad Hall Builders Limited
Ultraspec 2013 Limited
Fletcher Satherley Elevation Construction Limited Kadin Scott
Gibbons Construction Limited
UNITEC Institute of Technology Vjekoslav Jukic
Murray Long Builders Limited
Coastal Artisan Carpentry
Kylin Construction Limited
Laing Properties Limited
Eleven Construction Limited
Concept 2 Construction
Tony Wilkins Builder Limited
P & J Building Services Limited
Bhouse Construction Limited
IN THE KNOW —
My Top 4 Tips to Tighten the Belt on Your Next Project When everything is going well, and the quotes are being accepted left right and centre, being efficient with time and materials is often one of the first things to be left by the wayside as you navigate keeping on top of everything else. 3 Set realistic expectations
Efficiency can come in lots of different shapes and forms and is something to keep in mind both before a project starts and during the quoting process, as well as while the job is running in amongst the busy-ness. It doesn’t matter if you are busy or quiet, holding onto that precious net profit at the bottom of your P&L statement is the life blood of a healthy company. The last thing you want is to think about the efficiencies you could have made when it was busy, to help you through when it is quiet. Here are a few of my thoughts:
1 Product waste
Sometimes you will get a client who wants champagne on a lemonade budget… often as the QS we get called in for some value engineering at this stage to help bring things into line, but a builder’s input here too is very valuable. A QS wants to help maintain aesthetic and functionality while slaughtering the budget, so working alongside a builder to problem solve tricky spots and come up with cost effective ideas can be worth its weight in gold. Not only do you get the client over the line with a contract, but they think you are amazing!
4 Stick to your pricing plan
How often have you walked onto a building site to see screws spilled all over the dirt? Or off-cuts lying around waiting for someone to toss them into the bin? If you have costed your P&G accurately and specific to the site conditions, then you will have already allowed for a daily site clean among other things. During that site clean, send the apprentice around with a bucket to pick up all the dropped fixings and anything else that could be used. Make sure leftover pieces of timber are stacked neatly so that when you inevitably run short, there is a ‘go-to’ pile you can check first before your ring up your supplier and ask for another load of materials.
Here’s my last thought, and you will have heard me say it before – one of the biggest ways to keep your profit where it belongs is by running your job the way you priced it. If you have priced out your labour based on your material measures (as you should be doing), then you have a blueprint for how the job will run, and when you will need what labour, etc. Use your initial pricing to back costs along the way, pick up your variations as you go and, BOOM, the profit of the job will be sitting in your back pocket at the end!
Victoria Harrison, Director Red QS
2 Planning This is one thing that is worth spending a bit of time on at the outset. By planning, I mean working out HOW you will use your sheets of Gib, as an example. Think about things like, what off-cuts from where can fill up your gaps? Are there any access issues that will mean using a bigger sheet, although easier, impossible? Make your plan on paper if needed showing your elevations and then work out how many sheets will fit by just drawing them on! If you do all this work at the front end, then remember to make sure you pass it on to your foreman on site so he can work to your plan or you will lose all the benefit!
Red QS is primarily the builder’s QS, providing bespoke quantity surveying services to builders and sub trades, large and small, all across New Zealand. The team has an exceptional level of skill across the board, and our services are available on an as when needed basis! Sassy and fresh, creative and clever, we are proud to be part of the Construction Industry in New Zealand. See www.redgroup.nz for further information.
CERTIFIED PLANS —
Success Story for Certified Plans Member Wilson Construction, Hanmer Springs David Wilson started his new company, Wilson Construction, in Hanmer Springs on the 10th June 2016 and became a member of NZCB shortly thereafter. He knew that to be part of the ongoing growth of Hanmer Springs and appeal to new clients he would need to offer something new and exciting and Certified Plans through NZCB filled that niche. “Nobody else in Hanmer had bought into the Certified Plans scheme and it was appealing right from the start. The variety and easily laid out plans are the same if not better than what I had previously experienced in ‘offthe-shelf plans’ from other outlets. Coupled with the flexibility of plan design and systems to make the sell easier for the builder, it was a no-brainer to get involved with the scheme. The benefits speak for themselves and having our own unique URL link on our website to navigate potential leads to the Certified Plans range, or to just being able to post out or show the designs from the plan pads to leads as they presented themselves has been exponential in my company’s growth. To date, I have built four houses from the Certified Plans collection – three of which were client builds coming directly from leads generated and followed up by the sales system attached to the scheme – and currently have one in the pipeline. Not bad for two-and-a-half years in business! The plans I have built to date range from 140m2 to 240m2 and all tailored to suit individual requirements and location. The Harakeke for example, was selected to be built on a flat section with the cladding and roof changed to suit Hanmer’s unique building standards whilst also including a very aesthetic look using Classic Stone Veneer on various parts of the house. This design also had to be modified in shape to fit the same strict Hanmer standards and included a 10m2 alfresco dining area with beautiful stone covered columns. An extra high ceiling in the kitchen was included, offering flow onto the alfresco deck that is mouth-watering.
The Ponga, built on a very steep slope with major engineering aspects was also completed with ease but did include a few lengthy emails with ACD and engineers! It was extended in size and an extra bedroom added as well as an upgraded deck and stairs. The Kiwi also, was manipulated and flipped to fit onto its section maximising the northern view and sunshine, along with a redesign of the lounge, pushing the wall out under the veranda thus increasing the size of the overall footprint. The lounge the clients now have is bigger than some houses in the village! Again, with stone wall features and high-end specs, this house sits well above its market value. Lastly, the Kakapo, built as a spec home was sold off the plan prior to construction. It suited the style and position of the section without any alterations to the original footprint and with a few tweaks here and there with internal walls and external cladding it sold itself instantly. Being situated in Hanmer Springs does bring its own logistical complications, such as freight and product selection, so these have to be carefully managed to ensure the budget is not blown out. Add the strict design standards of the village and the geographical location (earthquake, slip and extra high wind zones), costs can exceed the baseline expected in the bigger cities. The indicative costings however, supplied by NZCB are pretty spot-on and by-and-large, the plans are easy enough to price given the detailed quantities and amounts provided with the scheme. Working with ACD architecture, the designer of the range of Certified Plans, on these projects has been very interesting at times and I think ACD now have a greater understanding of the strict requirements the Hurunui District Council uphold for the Hanmer basin. ACD have been nothing but professional in all of their dealings with these projects and I hold them in high regard.
CERTIFIED PLANS â€”
Kakapo by Wilson Construction
Built as a spec home, the Kakapo was sold off the plan prior to construction. They have a clear-cut pricing and quotation system that lets everybody from the client to the engineer know what they can expect in the way of design costs. To summarise, all of my happy clients have been truly amazed by how functional and robust the entire Certified Plans system is, getting their ideas and dreams from a page or a computer screen, to working plans and eventually a home built with quality and luxury we all come to expect from a new build. All of the feedback so far has been terrific.â€?
WELCOME TO OUR LATEST CERTIFIED PLAN MEMBERS Tom Hudson Hudson Builders Wanaka
David Wilson, Wilson Construction
Dean Lehmann Lehmann Building Limited Morrinsville
Simon Jacks Bayside Designer Homes Auckland
IN THE MEDIA —
Survey Shows Homeowner Complacency
Build New Zealand 01 January 2019
Around half of people embarking on a building project don’t bother to get a written contract. A SURVEY by NZ Certified Builders (NZCB) shows New Zealanders are still too laid-back about having written contracts and guarantees for building work, and most are not actively requesting seismic work when undertaking a build or renovation. 50% of homeowners using a builder to renovate or build a home in the last 10 years, mostly in the past 2–5 years, did not have a written contract. Of the work done without a written contract, 23% was for work valued at over $30,000.
Only 44% of homeowners had a building guarantee in place for their last build or renovation in the past 10 years... NZCB Chief Executive Grant Florence says this level of complacency about written contracts is consistent with the findings in NZCB’s previous survey undertaken in 2016. It is worrying that this is still the case, despite legislative change in 2015 that made written contracts mandatory for building work over $30,000.
The survey also revealed that only 44% of homeowners had a building guarantee in place for their last build or renovation in the past 10 years, 47% did not have a guarantee and 8% were unsure. “While the majority of respondents believe their builder should have responsibility for addressing any problems with their building work, without a written contract and a robust building guarantee when undertaking building work, homeowners are exposing themselves to significant risk, as are builders,” Grant Florence says.
IN THE MEDIA —
Focusing on Mental Health in the Construction Industry
New Zealand Construction News 01 January 2019
With the construction industry having the highest percentage rate of suicide amongst employed men of any industry in this country, a new report from BRANZ is focusing attention on the issue. The report from a BRANZ scoping study into mental health in the construction industry, released in September, follows consultation with industry members to gauge their support for further research in this area. While surprised at the high suicide rate, most of those interviewed agreed there was a key driver to the high rates – the poor culture. Described as ‘macho’ and ‘bullying’ and including intolerance of diversity, the culture was seen to significantly contribute to poor mental health of construction industry workers. The impact on worksite safety of poor mental health is high, with presenteeism (working while sick) being seen as a major health and safety risk for those working onsite. Internationally, research shows the construction industry suffers from higher rates of suicide and mental health issues compared to the general population or other industries. Research undertaken in Australia indicates construction workers are six times more likely to die by suicide than in a workplace accident. As a result, countries such as Australia, the UK and the USA have implemented initiatives to reduce suicide and improve mental health as a fundamental part of health and safety.
Contributing factors Fifteen people were interviewed on the issue of the state of mental health in the New Zealand building and construction industry for the BRANZ scoping study. Respondents cited several potential contributing factors for the high suicide rates, including: • A culture of toxic masculinity setting the tone for everything else that happens within the industry – the ‘take a concrete pill and harden up’ attitude among the workforce • The high-pressure nature of the industry (boom-bust cycles etc) • Drug and alcohol use • Well-informed customers demanding more • A high-risk worker population • An undervalued career path • Intergenerational issues on worksites • Intolerance of diversity The boom-bust cycle of the industry, and the resulting pressure, was also seen as a significant contributing factor. Interestingly, those interviewed said the boom cycle was seen as the most stressful, with a statement made by one participant that ‘the boom cycle breaks people’. This is because of the pressure to deliver quickly and in quantity.
BRANZ general manager industry research Dr Chris Litten says poor mental health or distress drives workers away from their jobs in the form of absenteeism and presenteeism, or leaving the industry entirely. This results in lower productivity and increasing costs, reinforcing a vicious cycle of pressure and stress. “Some of those interviewed noted some positive changes happening within the industry, but there was a unanimous call for more research to understand the factors behind the high rates of suicide,” Dr Litten says.
Research urgently needed Hot on the heels of the BRANZ scoping study, Site Safe NZ announced that, in partnership with BRANZ, they will be leading a new, in-depth study to uncover the underlying trends behind the high number of suicides in the industry. Chief executive Brett Murray says understanding the problem is the first step to prevention. “This vital research will help us get the data we need to understand the bigger picture. Unlike Australia, where the high rate of suicide in construction has been recognised for years, in New Zealand we are still coming to grips with the scale of the problem.” The study aims to analyse the coroner’s findings of all suicides of construction workers from 2007 until 2017, some 339 cases, to better understand any common factors. “Having access to these cases will give us a real opportunity to take an in-depth look at this issue. By undertaking this research, Site Safe hopes to shed some light on what is driving poor mental health in construction, so we can then work alongside industry and government to put in place effective prevention programmes.”
Wellness initiative Some organisations are well down the track with support programmes for those suffering mental health issues. In January 2018, NZ Certified Builders (NZCB) announced its partnership with EWP (Employee Wellness Programme) to provide its member builders with access to mental health support at times of stress. This includes a confidential counselling service nationwide, which NZCB members can access at preferential rates, with NZCB picking up the cost for the first counselling session, as well as wider coaching and wellness support. NZCB chief executive Grant Florence says the need for such a service is reflected in indicators of the prevalence of mental health issues in the building and construction industry in particular, attributed to the male dominance of the industry and its culture. “Builders may feel the need to live up to a particular image that involves ‘toughing things out’. Partnering with EWP means we can make it easy for our members to access support when they need it, and recognises that the wellbeing of both business owners and their staff is critical to NZCB members’ business success,” he says.
TECH TIPS —
Estimating For the small or large builder, estimating can be a lonely, time-consuming and difficult job
Building and construction estimating lies at the very heart of a successful project. The professional building estimator is charged with estimating the cost of a project. In doing so, they must ensure that they neither under estimate nor over estimate the cost. Under estimating can of course lead to substantial losses and in extreme cases threaten the viability of the whole organisation. Whilst over estimating a project potentially means the organisation will miss out winning the business. Estimators often work alone without support or even the benefit of fellow estimators to ‘bounce ideas off’. It can
be a lonely life. On many occasions the estimator is also the owner/operator, so estimating is done at home on the kitchen table so to speak. Ensuring you can quote accurately and quickly, reducing your risk of underquoting jobs is key. Using Cordell Estimator Platinum you can import prices from your own preferred supplier or use a mix of Cordell prices and your own pricing – it’s up to you. It also contains job templates and a selection of comprehensive reports. For more information about Cordell Estimator Platinum check out the Products section of the CoreLogic website www.corelogic.co.nz
This Tech Tip was supplied by CoreLogic New Zealand. CoreLogic is the largest provider of property information, analytics, property-related risk management and geospatial location intelligence in Australia and New Zealand. CoreLogic’s data and analyses are relied upon to identify and manage growth opportunities, improve performance and mitigate risk within all levels of the economy – from government to consumer. CoreLogic acquisitions include Cordell, which means the New Zealand construction industry now has access to market-leading technology combined with local New Zealand data and geospatial intelligence. www.corelogic.co.nz
NZCB NEWS — Grant Florence Chief Executive
Changes Ahead for Apprentice Training? The Minister of Education Chris Hipkins recently released a proposal on changes to how apprentice training is organised and completed. This comes off the back of a completion of a Vocational Education Training review that Government has had underway for the past 12 months or so. These changes are a ‘proposal only’ at this stage and Government is seeking feedback from employers, apprentices and industry. The time frame in the proposal is pretty tight and includes the time for feedback ending late March, an announcement on the feedback and what Government has decided to do around mid year, with new laws being passed before Christmas 2019.
The NZ Institute of Skills and Technology would bring together all 16 existing polytechnics to manage the delivery of training that is currently completed by the polytechnics in the regions they currently operate in. This would include the consolidation of the various functions (eg. finance, building maintenance etc.) into one centre, to theoretically remove duplication and improve efficiency. Industry Skills Bodies would work with NZQA to develop and approve education programmes, set standards, moderate (or audit) the programmes and contribute to the development of the curriculum including teaching resources. They would be responsible to seek and hear the voice of industry into training. To become an Industry Skills Body, organisations would need to apply and be approved by the Minister of Education.
NZCB Subscriptions and Levies Review The Board of NZCB recently completed its annual review of levies and fees. The Board decided to increase the fees and levies by 2.5%, which is to keep these changes pretty much in line with inflation. The fees and levies of NZCB are very competitive in the market and, in some cases, are less than half of similar tradebased organisations.
So, plenty of potential far reaching changes. NZCB and ITAB will be providing submissions on the proposal. If you have any thoughts or ideas, please contact us at email@example.com
In the meantime, there is no impact on apprentices in training currently or who are thinking about starting an apprenticeship as any change will have a long introduction and transition period.
We would be grateful to hear any thoughts you may have. Till next time…
The proposal if adopted has very far-reaching impacts on the trade training sector. The key changes include the formation of a new entity currently named the NZ Institute of Skills and Technology as well as the formation of Industry Skills Bodies, and changes to the way funding is provided for vocational training. Other aspects include the formation of Centres of Vocational Excellence and regional leadership groups. Each of these groups would have roles and responsibilities that are currently held by Polytechnics, Industry Training Organisations (eg BCITO) and would work alongside NZQA and the Tertiary Education Commission.
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