Building Business June 2020

THE LATEST NEWS FROM YOUR BUILDING SUPPLIES SPECIALIST

More government relief packages

Reducing risk in a recession

05

09

Highlights

Mental health: checking in with your workmates.

03

ISSUE 91

7 tips for parenting while running a business 15

J 20 UN 20

Zooming in on new ways to communicate 22

MENTAL HEALTH

ITM NEWS

A mental health checklist

The powerful effects of locals supporting locals

03-04

19-20

LEGAL There are more government relief packages you should be looking at

05-06

PRODUCT KNOWLEDGE GIB Weatherline® FRR for columns and beams

21

INSURANCE Bonds & guarantees – winning clients, lowering costs & reducing risk in a recession

TECHNOLOGY

9-10

22-23

TRADE ASSOCIATIONS

CODEWORDS & QUIZ

Covid-19 highlights value of NZCB membership for builders

Liquefaction lessons. On-the-job learning

Zooming in on new ways to communicate

24-27

13

FISHING

DUST CONTROL

It’s time we addressed this madness

Controlling respirable silica dust in construction and manufacturing environments

28

14

Windsor's new rapidFIT system

NEW PRODUCT

29

BUSINESS ADVICE 7 tips for parenting while running a business

15-17

NEW PRODUCT Abodo's Cadrona cabin

30 HIGHLIGHTS D

Tools and accessories

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H-Class dust extraction solution

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The powerful effects of locals D supporting locals

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BRICK & EXTERNAL BLOCK LAYING PLASTERING

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Building Business is a bi-monthly magazine produced by ITM Support Office. For feedback or address updates contact: ITM Support Office, PO Box 101556, North Shore, Auckland. Email: buildingbusiness@itm.co.nz Ph: 09 415 2787.

ISSUE 91: JUN 2020

In this issue

Is one of your workmates behaving differently?

In another world?

Reckless?

Not coping?

Withdrawn, a bit distant, not getting involved in things?

Taking silly risks on site, a bit manic?

Coming into work late or being absent regularly?

Concentration not what it used to be? Easily distracted?

Hung over or otherwise impaired?

Not looking after themselves, looking unkempt?

Hyperactive and not making a lot of sense?

CONTINUE >>

MENTAL HEALTH

A Mental Health Checklist

03

uple of days.

04

“How can I help?” step?”

“What would be a good first “What has helped before?” ne else about this?”

“Have you spoken to anyo age the load?”

“What would help you man make life easier?”

“What can we change to

d about g because you are concerne Let them know you are askin onally. y, stay calm, don’t take it pers them. If they get upset or angr t is going on like: Ask questions about wha

Mental health resources HOW CAN YOU SUPPORT THEM?

– anything up?”

mention specific things that

have made

“How are you doing?” world?”

“What’s happening in your “How’s life?”

“How’s the family?”

and the answers – just being there You don’t have to have all Start with... being supportive is great!

HOW TO START THE CONVERSATION

HOW TO HAVE A CONVERSATION ABOUT MENTAL HEALTH

So think about the right place and the right time.

Somewhere quiet and private.

“You don’t seem to be yourself. I’m checking because I am concerned about you.”

A personal, intimate and private approach will give your workmate a chance to open up.

It’s best to just listen, don’t make judgments. If they get upset or angry, don’t take it personally. Don’t interrupt or rush, sit patiently in silence while they think and talk.

“You don’t seem yourself

A new pocket guide about how to have conversations about mental health has excellent advice on looking after friends and colleagues. For a copy of the guide, go to sitesafe.org.nz

A personal chat

Start with something like this:

If they’re okay talking, then you concerned, such as

You will want to put it off. That’s only natural. But if you don’t have the conversation, who will?

think.

Talking about personal struggles can be tough; people usually react emotionally, getting embarrassed or upset. Sometimes angry. And none of us really wants to get involved because it’s all very personal and awkward.

Follow up the next day after your chat and the day after that. If you are really worried, don’t hesitate to get outside assistance. they patiently in silence while Don’t interrupt or rush, sit Take it seriously.

If you sense a workmate is struggling, don’t ignore it because it won’t go away. You will probably recognise the signs instinctively without having to do the checklist above.

WHAT NEXT?

The 2019 BRANZ report 'Suicide in NZ' concluded that the construction industry had the highest proportion of suicides across all industries in New Zealand. And there is little doubt that the social distancing and lockdown measures introduced because of Covid-19 will exasperate mental health problems in the industry.

Think about what other support they may need such as the Employee Assistance Programme, their GP, family, whānau, friends, community and church leaders and help them to contact them. the ort they may need such as Think about what other supp nau, ramme, their GP, family, whā Employee Assistance Prog to contact ch leaders and help them friends, community and chur things like: t they may need. Ask them them. Avoid assuming wha

MENTAL HEALTH

Common sense about mental health in a crazy world

Health and Safety World Class Construction mahi waihanga e ana mō te haumaru i ngā haer e ma kei ao, te Huri

MATES in Construction is a free confidential service available 24/7. Phone 0800 111 315 or text us on 5353 and one of our staff will support you. There are also a number of guides about mental health in construction, which you can download at mates.net.nz

MENTAL HEALTH AND SUPPORT GUIDE FOR INDUCTION Returning to work after COVID-19 lockdown

INDUSTRY-BACKED, RESEARCH-

BASED, SUICIDE PREVENTION

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Lifeline: 0800 543 354 (available 24/7) Suicide crisis helpline: 0508 828 865 (available 24/7) Youthline: 0800 376 633 Depression helpline: 0800 111 757 (available 24/7) Ask questions like “what can I do to help you manage the load? What can the company do? What do you think would be the best thing right now to sort out the problems that are getting you down?”

Samaritans: 0800 726 666 If it is an emergency and you feel like you or someone else is at risk, call 111.

05

LEGAL

There are more government relief packages you should be looking at At the time I wrote this we were in Alert Level 2 and looking like we were going to stay there for a while.

For builders, that won’t have made a lot of difference because they were already able to resume work under Level 3, and the Covid-19 health and safety requirements that apply under Level 2 aren’t a lot more relaxed. So, it was back to business, but at a slower pace and a higher cost.

Fortunately, most builders would have already been halfway through a project when the Level 4 lockdown happened, so their clients would have had little option but to get it finished, although they might want to down-spec it a bit. Hopefully, most builders will have got their invoices out before or during the Level 4 lockdown and hopefully most have been paid on the due date.

Therefore, the worst that most builders will have experienced so far is a delay in being able to send out their next invoice, meaning a temporary reduction in their income stream, but a corresponding reduction in their building materials and subcontractor costs. Of course most of their overheads will have continued unabated – and certainly their household outgoings will have - but hopefully the major overheads will have been softened by the Government’s wage subsidy, and possibly some relief from their rent and outgoings if they are lucky enough to have the latest version of the ADLS commercial lease (or a sympathetic landlord). They might have even taken advantage of the Government’s business finance guarantee scheme and arranged a temporary overdraft facility with their bank.

What lies ahead The challenge for them now is to get through the economic winter that is coming. Because a transition to Level 1 is not going to help much if

your client has lost his job – or his confidence – and either wants to pay you slower or cancel the project prematurely. It will be even more challenging if the projects that you were counting on to sustain you after the current projects come to an end, disappear just at the time when the wage subsidy runs out.

Now most of you may be able to ride out the storm if you cut costs and hunt out the right kind of replacement work from the right kind of clients.

But the builders who are going to struggle are the ones who suffer an unexpected body blow – for example a client who owes you a lot of money either becoming insolvent, or withholding payment from you because of a genuine or manufactured dispute.

If you look at all the collapses of construction companies that have happened over recent years you will generally find that a major contributing factor was a court judgment, an arbitrator’s award or an adjudicator’s determination that went against them and in favour of their client.

So if you are already struggling to keep your head above water or you have a suspicion that your client is in a similar situation or is about to turn against you, then I suggest it’s time to be proactive and

06

LEGAL

start investigating the options that are available to you courtesy of the Government, as a result of this unprecedented Covid-19 situation we find ourselves in. It is going to take time to put those safeguards in place, and you don’t want to leave it until the bank’s receiver is breathing down your neck, your creditors are serving statutory demands on you, or the Government withdraws the rescue packages because the take-up has been greater than expected and others have got in ahead of you.

What relief is available?

Some of these packages are old news so I won’t dwell on them – the well-publicised wage subsidy and leave support schemes that you have probably already taken up, and the business finance guarantee scheme that makes it easier for you to raise bank finance (if you can satisfy their lending criteria) because the Government is taking 80% of the risk off the banks. There is also the taxation relief scheme that (among many other things) allows you to claim a loss that you anticipate making in either the 2020 or the 2021 tax years, against any profits you made the year before, when you are filing your return for that previous year.

“Be proactive and start investigating the options that are available courtesy of the Government, as a result of this unprecedented Covid-19 situation we find ourselves in.”

Then there is the Small Business Cashflow Loan Scheme, which became available on 12 May despite Parliament having brought it in without knowing it, on 30 April. Inland Revenue will provide loans of up to $100,000 to small businesses (those employing 50 or less full-time equivalent employees) who are impacted by the Covid-19 economic shock. Loans will be interest-free if they are paid back within a year, and if they aren’t, the interest rate will be 3% for a maximum term of five years. Repayments are not required for the first two years.

There are also some newer rescue packages that are more in the nature of emergency measures – the steps you take when the Government financial assistance hasn’t been enough, and you need a Plan B. These were all part of the Covid-19 Response (Further Management Measures) Legislation Act 2020 that came into force on 16 May (except for some of the taxation reforms which were backdated to 15 or 30 April). This is what these provisions will do for you.

First of all, you might be worried about whether you should throw in the towel now, given that you are a director of your company and you can’t see

any reasonable prospect of it surviving. After all, you don’t want to go into liquidation, and then be sued by the Liquidators for breach of your duties under the Companies Act like the directors of Mainzeal Property and Construction Ltd and more recently a number of companies that were formerly part of the Hawkins Group. Well the good news is that the Government has relaxed the rules so that if you are inclined to battle on, and you meet the relevant criteria, then up until 30 September 2020 (or longer if extended) you are allowed to take more of a gamble than you could have in the past.

Business debt hibernation scheme And to give you a fighting chance of survival, the Government has also brought in the business debt hibernation scheme which will prevent your existing creditors from being able to put your company into liquidation for up to seven months, if you get more than 50% of your creditors in number and in value, to vote in favour. And while that is in force any new creditors will not have to fear having their receipts clawed back from them under the voidable transactions regime, if you go into liquidation afterwards. This hibernation scheme is supposedly a lot simpler than the existing ways you can buy extra time under the Companies Act - schemes of arrangement, creditors’ compromises and voluntary administration – but even so the rules are complex and the criteria are strict.

So, if a seven-month delay in paying your creditors might make all the difference between survival and financial ruin, then start the process now. See your accountant and your lawyer, or if they say this is a bit outside their comfort zone, then contact me, because we have a team of young lawyers who are ready to put in place for you.

by Geoff Hardy Auckland Commercial Lawyer

COVID-19 FINANCIAL SUPPORT TOOL Use this online tool to find out what financial support is available to you: www.covid19.govt.nz/businesses-andemployees/covid-19-financial-support-tool

lawyers

Geoff Hardy has 45 years’ experience as a commercial lawyer and is a partner in the Auckland firm Martelli McKegg.

He guarantees personal attention to new clients at competitive rates His phone number is (09) 379 0700, fax (09) 309 4112, and e-mail geoff@martellimckegg.co.nz This article is not intended to be relied upon as legal advice.

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Bonds and guarantees – winning clients, lowering costs and reducing risk in a recession

09

INSURANCE

While the precise impact of a recession on our construction sector is unknown, it will no doubt affect many small businesses as less work is pushed through the pipeline. For savvy business owners there are options to help both reduce risk to their own profitability and give greater confidence to potential customers.

Put deposits & milestone payments in escrow – and promote this as a benefit

Even in a buoyant economy putting down $500k on a new house, or even $50k on a renovation, is a serious investment for most people. And consumers feel even more nervous about big spending decisions in a recession. We know that many have already decided to hold off on their planned projects until things settle down. So, any extra reassurance you can give them that their money will be safe with you is going to help get them over the line.

While it can be tempting to put a customer’s deposit towards the set-up costs for a project, it is generally not for this purpose (other payments can be scheduled for these costs). It is certainly not there to pay overheads or bills from a previous project! Deposits should be held over and returned to the customer on completion of the job or, if agreed in the contract, used to offset final payments.

CONTINUE >>

Customers need greater peace of mind in uncertain times

10

INSURANCE

One simple way to give confidence to your customer is to hold their deposit in escrow. This means the money is paid into an independent account, usually a lawyer’s trust account, and can only be drawn down when both parties agree. Any dispute would be resolved via the dispute mechanism within your contract.

The same approach can be taken for all milestone payments.

There is a small cost to using an escrow service, but this can be built into your price. Look at it as an investment to win business from nervous clients who otherwise may not have gone ahead. It can also be used in your marketing.

Don’t take advance payments Structuring your staged payments so that you’re only taking money for completed work is another way to give confidence to clients. And with banks exercising greater control than ever over contractual milestone payments, this is already par for the course in many cases. Builders can turn this approach into a positive marketing message, even for homeowners who aren’t reliant on bank finance.

While both of the above options can create risk to the builder, who will need to cash flow each stage themselves, the number and frequency of payment milestones can be structured around credit terms with subbies and merchants, so that there is rarely an issue with the builder being too far out in front of the job.

Provide an independent guarantee At Builtin, one of the most important checks we do on builders wanting to offer our guarantee is a financial solvency assessment. In these uncertain economic times this shows potential clients that their builder, if they are accredited with Builtin, has been rigorously assessed and found to meet a high standard for financial solvency. It indicates to them the builder is in a strong position to work through the challenges an economic downturn may bring.

Builtin’s Accredited Builders can then provide their clients with an independent guarantee that their building work will be completed at the agreed price. If something unforeseen does happen, the homeowner can call up their guarantee and another builder will be appointed to finish the project. That peace of mind could be the difference between someone deciding to build now or wait, or to choose one builder over another.

The Master Build Guarantee is another well-known example of this type of cover, with this and Builtin’s the only two currently available in New Zealand. To offer clients an independent guarantee, builders must apply, be assessed and accepted by one of these two organisations.

To apply for accreditation with Builtin go to www.builtin.co.nz/10-year-guarantee

You also need to protect yourself If you subcontract to a larger firm, you also face a financial risk if they (or the project principal) gets into difficulty. There are a number of options to help subbies lower their risk too.

Surety bonds instead of bank bonds If a contractor is required by their principal or head contractor to supply a bond, your bank will typically require you to hold an amount equal to the bond in cash. That’s money you might not have or might need to support your business over the next 12 months. And if it’s structured in the form of an overdraft, you’ll be paying through the nose for the privilege too. But without the bond you can’t win the contract.

A surety bond is an alternative to a bank bond and is backed by an insurance company or specialist bond provider instead. You pay a fee, typically a percentage of the bond value, to purchase the bond.

This means your cash isn’t tied up and you’re not having to pay interest on an overdraft, which can make a surety bond a cheaper alternative as well.

A retention bond instead of retentions Changes to the Construction Contracts Act were designed to improve protections for subbies’ retentions. However, we’ve seen from the Ebert case that this hasn’t necessarily worked. If your head contractor or principal is asking to hold retentions, you may want to provide a bond instead. The main benefit of a bond here is that your retentions would not be at risk if the head contractor or principal gets into trouble.

In a nutshell In times of economic uncertainty, managing risk is even more important than normal. This is because it both reassures customers and protects your own bottom line. Bonds and guarantees are a smart, cost-effective way to do both.

by Ben Rickard Builtin Insurance Advisor

Builtin Insurance are New Zealand’s trade insurance experts. For more information and an instant quote, visit builtininsurance.co.nz or contact Ben Rickard at ben@builtin.co.nz or call 0800 BUILTIN

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In the extraordinary circumstances created by the nationwide response to Covid-19, the challenges faced by builders – many of whom are also small-to-medium business owners – have been considerable and we’re not out of the woods yet.

During the Covid-19 pandemic, builders have needed the kind of support that trade associations like NZCB provide, and this is reflected by the increase in applications received for new membership since the country moved to Alert Level 4.

Offering practical support and advice From the outset of the move into lockdown, NZCB began communicating with members more frequently than ever through a wide range of channels, including new ones like Zoom sessions, which helped to connect members while isolated.

And we focussed on the practical stuff, like information on accessing the wage subsidy, the impact of Covid-19 on building contracts, health & safety, and business planning for recovery.

Economist Tony Alexander's webinar session with NZCB Group Technical Manager Jason McClintock

We also engaged leading economist, Tony Alexander, to present a series of three sessions for our members from late April, as we started to think about the transition out of lockdown and into recovery. In addition to general commentary about the future of the economy, his sessions specifically addressed what it means for our sector – especially for builders who like many of our members, are small-to-medium business owners.

Looking to the future We’ve had great feedback from members who valued our proactive approach from the outset.

They also appreciated the highly targeted, relevant information and support we’ve provided, based on a keen understanding of the realities they’re facing and their immediate needs.

But we also know that builders are worried about the future. Despite having work to go back to and having had the opportunity during lockdown to work on their businesses to address long-term resilience, they’ve told us through our sentiment surveys that the uncertainty of the economy is a concern, long-term.

In that context, a key focus for NZCB going forward is continued advocacy to Government around the kinds of initiatives that can be put in place to support the industry. We played a key role in influencing Government decisions around the transition to safely getting back to work under Level 3 and 2, and will continue to seek to influence decisions that directly affect the operating environment for our members.

But we also have a role in highlighting bigger opportunities for the sector and the economy overall, such as new initiatives that incentivise uptake of trade apprenticeships at a time when there is growing unemployment caused by downturns in other sectors. We also want to see Government actively working to maintain confidence in the residential housing market, given that more of our sector is involved in residential housing work than in the higher-profile, large infrastructure work.

NZCB has the resources to help For their part, builders can continue to build their own resilience by doubling down on their marketing efforts and considering joining a trade association to access meaningful ongoing support. It’s about the value of working together to share knowledge and resources, so as a builder you don’t feel so out on your own – even while continuing to observe social distancing.

NZCB Chief Executive Grant Florence

TRADE ASSOCIATION

Covid-19 highlights value of trade association membership for builders

13

14

DUST CONTROL

Controlling respirable silica dust in construction and manufacturing environments Respirable Crystalline Silica (RCS) dust is created when materials containing silica are cut, ground, drilled, polished or otherwise disturbed.

Silicosis is a progressive and deadly disease that causes fibrosis of the lungs from the inhalation of RCS dust.

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7 tips for parenting while running a business

15

For tradies, dealing with the fallout from Covid-19 puts you under significant pressure. Jobs take longer, the recession has brought worries about cash flow and securing ongoing work; basically, it’s a season where you’ll likely have to dig in and do some big hours just to keep the business going.

and let yourself off the hook for other stuff. What’s non-negotiable for you? Being there for Christmas Eve, the annual fishing trip, school performances, their Saturday games, weekly movie nights, or maybe it’s just being home in time for dinner every night?

So how do you juggle it all and still look after your family, especially if both of you are working in the business?

Once you know what it is, protect that time by having a 'no' speech ready anytime something (or someone) else tries to encroach. Be aware that 'yes' and 'no' operate in balance. Just like dropping your price might have dire consequences later (especially in this environment), saying 'yes' to a certain client, might mean saying 'no' to your family for the next few weekends.

I have five kids but I’m no expert on parenting. So I went looking for answers and found seven proven ideas to help all of us balance work and home:

1

Pick and choose To improve your business, taking stock is the first step. Same here. If you’re feeling guilt, pinpoint the root cause. Did you miss a birthday? Left them hanging while you took a work call? Worked on Sunday instead of building go karts or making TikToks together like you promised?

Get clarity around what you’re okay (and not okay) with missing out on. Figure out what’s important

Make sure to let go of other people's expectations.

Weigh your own actions. Most people have no idea the amount of work and sacrifice it takes to run your own business. Just don’t miss the things that would gut you to miss.

CONTINUE >>

BUSINESS ADVICE

Anyone who has kids and a small business deserves a medal. It’s not easy.

16 BUSINESS ADVICE

2

Set the tone What we expect is what we will see. Don’t buy into 'terrible twos' or 'disrespectful teens'. Focus instead on the best things each season of parenting brings.

Likewise, focus on what is good about being in business. How you talk about your business = how your kids will feel about it. If you talk like you hate your business, your kids are probably going to internalise that, parrot it, and feel a bit septic about the time you spend working.

A good business makes you more money than a regular job would. Gives your kids better opportunities and a head-start in life. Heck, you’ve created flexibility to help out with the kids more and spend more time with them. You’re providing for your family. That’s badass. Own it.

Talk this through with your kids, help them see the reasons you work so hard. Soon they will be grown and have their own careers (or business). Kids learn by watching (and mimicking) us. Are we modelling healthy behaviour in how we handle the curveballs and how we treat our clients and team?

3

Accept that it’s messy You can’t do it all. Don’t try. Get help with the kids, the house, the business. As much as you can in the current scenario.

We’re not supposed to parent alone. Encourage healthy influences in your kids’ lives that are not you.

Find childcare options your kids love and don’t feel guilty. Hire an online tutor, cleaner, lawn-mowing service, meal delivery, anything that makes it easier!

Workwise, outsource and delegate as many of the <$25/hour tasks as you can. To be a successful leader, spend your time on the high-level tasks. Save time by systemising and streamlining as much as you can in every area. Now is a great time to lean on technology.

4

wait an hour. In the car? Practice times tables. Ask your kids what problems they want to solve in the world, or listen to an audiobook together. Cooking, doing dishes, folding laundry? Have the kids help; blast the family soundtrack or ask them about Minecraft. Going out to pick up supplies, or clear the PO Box? Take one kid along for some one-on-one every time you run an errand (if it’s safe). Bring the kids into the business. Give them simple jobs in the office or begin teaching them your trade

5

Make memories For parents struggling with lack of time,

Karthik Rajan shares this gem: Time doesn’t matter.

Memories do.

Question: What are some of your best memories of things your parents did for you? In a Facebook group, this generated 286 comments. Most about simple moments that didn’t cost money: “My dad tucking me in at night and making up stories!”. “Chasing us around the house endlessly”.

“My mum would put her hand on my forehead when I was sick”. “She always put notes in my lunch”.

“Working on projects with me”. “Going fishing with my dad”.

“Tuesdays was the day dad picked me up, it was our tradition to stop for chocolate on the way home”.

“Every Sunday he would make pancakes”. “My mum used to make the bed with me in it”. “She’d put towels in the dryer to warm them before we got out of the bath”.

I teach my clients the 80/20 rule to create more profit. Similarly – identify and focus on the 20% of daily activities, the simple moments that matter most to your kids.

6

Play at 100% One study found children were better off when

parents work was challenging and enjoyable, even

Optimise the in-between Research shows the in-between moments of regular family life (activities like chores or taking the car for a warrant) can do as much for family bonding as any planned “family fun”.

if it limits time at home. However, this only held if,

Here are the things studies have associated with improved outcomes: Talking to and listening to your kids. Making it clear you have ambitions for their future. Being emotionally warm. Teaching them letters and numbers. Taking them on excursions.

Reading to them daily (and encouraging them to read for pleasure). A regular bedtime.

play in extremes. My daughter had a recital, I was

Easy ways to make the most of things you’re doing anyway: Implement a “no screens at the dinner table” rule. Turn your phone on silent. Clients can

husband”. When I get home, I walk through the

when dad was home and off-duty, he was available, and not on his phone constantly or obsessively thinking about work.

Gary Vee is known as a workaholic. Yet he says: “I the first parent in line for it. On weekends, I am all in.

100%. I’m not playing 4 hours of golf. I’m not doing things other people are doing. I’m all in on the kids.”

CEO Sharran Srivatsaa has a good tip: “On my way home, I pull over, I finish any calls, load my meditation app, change my state to “father and door present and joyful. This simple 6-minute state change transformed my life”.

17

A common scenario is when the female partner has agreed to do accounts and run the show behind the scenes, while he is on the tools, or with clients.

If this isn’t her natural skillset, or she’s constantly overwhelmed, it may be time to look at another option. Not all couples can, or should, work together (especially if there’s an eroding baseline of respect).

It’s also wise to consider how much time she really has available, especially if you have kids under five or still in primary. Factor in learning at home, relentless interruptions (or in normal times, school hours, sick days, and school holidays) – and the required consistency in the role may be hard, or impossible, to achieve.

As we wrap up, here’s a sobering stat: 93% of the time we spend with our kids is over before they finish high school. Once they move out, we won’t see them nearly as much, and have less influence.

BUSINESS ADVICE

7

Love your work, or quit It’s probably not possible to build a business without your partner having some role. However, it’s important you’re both playing to your strengths, and on the same page. It’s always helpful to take a step back and assess: “Is this working?”

Time is short. Life must be on your terms. Yes, your business is probably going to require more attention in this season. To avoid regrets, and your kids missing out, the key is to set your boundaries and schedule in advance, so work doesn’t encroach on family time.

by Daniel Fitzpatrick

Daniel Fitzpatrick is a business coach for trades & construction business owners.

Find him at NextLevelTradie.co.nz

Want to know the 5 things you must do now to protect your business, minimise losses + stay ahead? I have a new checklist available for download – get it free here: www.nextleveltradie.co.nz/covid

Research also showed kids are mentally healthier when mum feels she has control over what happens in her workday and has time away for self-care (this increased her capacity, compared to using that same time on housework).

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19

ITM NEWS

The powerful effects of locals supporting locals The extraordinary crisis of the last four months has shone a spotlight on the unique character of New Zealand, and especially the resilience and resourcefulness of the local communities that are the backbone of our country.

“Locals supporting locals is what we’ve always done.

And after what we’ve all been through recently, it’s the only way we’re going to be able to get on the horse again and get out of this doom and gloom.

We have to support local. Let’s look after each other.”

Warren (Wizzz) Johnson from Taupo ITM has a certain view about the power of strong community relationships. It’s a long-term one.

It doesn’t happen overnight

“We don’t just work from seven until five. If people want something on the weekend or after hours, we do it. We’re not a corporate, we’re locals. We have huge backing and support from head office,

“Recently a long-time customer called us and needed some product first thing Monday morning.

Our delivery schedule was full for Monday, so we went into work and loaded up the timber truck and delivered it on Sunday."

“We do stuff for our customers over and above. In the old days, they called it service.”

CONTINUE >>

“Building relationships is a long game. I’m always thinking about what I can do today and how that can benefit our customers and the community over the next 10 years plus,” says Warren.

but being independently owned, we have much greater flexibility to adapt to our particular local environment.”

20 Bringing back the birds

ITM NEWS

“When you plant a tree, that tree is there for 25 years, 40 years, 100 years. When you build a mountain bike track, or a rat trap, and help thousands of Taupo schoolkids onto bikes, the effect goes on forever.”

“I’m not a greenie at all, but I really admire the passion and commitment of the people behind Greening Taupo."

“And you can see the results. When you get close to town, there’s no blackberry on the side of the road, hundreds of trees and shrubs have been planted; the corridor coming into Taupo now is unbelievable.”

“We don’t support these groups thinking that it will draw more people to shop at our store. The return on our investment is a different kind of return, a return for all the people of Taupo and it’s a lasting thing.”

Long-term gains Shawn Vennell, Greening Taupo: “We’ve done planting programmes all over Taupo, we prepare the ground, get rid of weeds, and then we have planting days."

“Some of the things we did in 2015 when we started, you see them now. Warren gave me a battery-

powered chainsaw way back then. And it’s grown from there. They supply the timber, the expertise, the tools, just about everything we need.”

Taupo ITM is also big contributor to Predator Free Taupo. Robyn Ellis explains: “We organise making traps and getting them to people so they can put them in their own backyards."

“We get the timber and nails and stuff from Taupo ITM, then we do workshops on how to build traps.

The kids love it. With ITM’s help we can keep the cost really low, under $10 a trap.”

Warren and the crew also do work for Bike Taupo, and spokesman Ian Jensen is straightforward about the benefits.

"Taupo ITM help build structures, ramps, railings, provide vehicles for events, their involvement is massive. There’s not a thing they won’t do.”

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22

TECHNOLOGY

Zooming in on new ways to communicate If you have chunky thumbs and thick sausage-type fingers like a lot of builders, navigating a tiny phone and downloading apps is not top of your to-do list.

Plus, remembering the password rigmarole and going through the verification thingy, clicking the boxes of the pictures with traffic lights, or bridges or shop fronts is infuriatingly frustrating.

But this is a strange new world, and you’ll be relying on your cell phone (or tablet or laptop) to communicate and do business in new ways like never before.

The upside And besides, there may be some advantages.

Difficult-to-arrange onsite meetings might be unnecessary from now on. You can achieve the same result by having a video conference.

Perhaps the building inspector can inspect your site by video link? In the age of social distancing, will

the legendary builders breakfasts become virtual?

Do we need to travel to a show-and-tell function to earn LBP points?

Video calls are going to become the new norm. Not so much because you want to see someone’s face, but because they can show you exactly what they’re talking about with video point-and-show accuracy, reducing the chance of misunderstanding.

You can use your device to film stuff and show people what’s happening in real time and discuss it at the same time. The engineer. The designer. The subbie. If you have teams working on a number of sites, it’s a brilliant way of managing just about everything.

Are you compatible with others?

The boffins use words like network connectivity to describe your ability to communicate with the people in your network, or these days, your 'work bubble'.

No point contacting Bob on Facetime if he hasn’t got Facetime, and Fred uses Google’s Duo, so he can’t see or hear you or Fred.

23 Skype We’ve already talked about Skype, but if you want to find out more, go to skype.com

The fact is that social distancing as a concept is here to stay for a long time and we have no choice but to work on workarounds to do the same job we used to do, but in a different way.

Google If you have a Google account, there are a couple of apps you can use, and they often come preinstalled on your phone.

What works best?

We’ve all heard about Zoom during the pandemic.

It is a very good system, but for small to medium size building companies, it may be like getting a Porsche when all you need is a well-used Toyota like Skype.

If not, they are easy to download if you have a Google or Gmail account, and you won’t have to invent a new username or password. To find out more, go to duo. google.com or hangouts.google.com

It’s been around for yonks and there is a good chance you’ve used it, or you know mates and family that use it.

FaceTime, WhatsApp If you are familiar with either of these platforms, then work with what you know, it’s always easier. Just a reminder to make sure the other people in your work bubble have the same platform. For more info, go to whatsapp.com or facetimeapp.com

Skype is perfectly adequate for video calls and allows you to record the exchange for future reference.

Microsoft Teams At ITM, we use the Microsoft Teams platform. It sounds a bit corporate, but it really isn’t like that.

The shortlist This is by no means an exhaustive list of all the options out there for video calling and video conferencing. It’s just a summary of the systems that are most popular, and easiest to get connected with.

TECHNOLOGY

So, you need to decide what works best for you, talk to the key people in your work bubble, and settle on a format you all feel comfortable with.

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24

LBP CODEWORDS

Liquefaction lessons Following a 2-year transition period, Acceptable Solution B1/AS1 will no longer be used for foundations on land prone to liquefaction. Foundations will be consented as a Verification Method or Alternative Solution.

New Zealand is a high earthquake hazard region, and earthquake considerations are integral to the design of the built environment. Liquefaction is a real risk to our built environment, especially to buildings, as it can result in settlement, tilting, stretching and damage to services and utilities.

What is liquefaction?

Liquefaction is when the strength and stiffness of a soil is reduced by earthquake shaking or other rapid loading. Three key elements are all required for this to occur: 1. Loose soil – typically sands and silts or, in rare cases, gravel.

2. Saturated soil – that is, below the ground water table.

3. Sufficient ground shaking – a combination of the earthquake duration and intensity of shaking.

What are its effects?

In areas with soils that are susceptible to liquefaction, significant damage to structures and lifelines can be caused by liquefaction-related lateral spreading and lateral stretching.

Lateral spreading is the horizontal movement of ground towards the free face (open face) or downslope as a result of liquefaction of shallow underlying soil deposits.

Lateral stretching appears as ground cracks that typically occur when the ground moves horizontally between two points over a given length.

Lessons from Christchurch Widespread liquefaction in the Canterbury earthquakes has resulted in an extensive amount of research and guidance, developed locally and nationally, on past occurrence of and future vulnerability to liquefaction.

There is also a broad understanding of the effects and how to mitigate these. As a result of this awareness, buildings constructed after the earthquakes are to be built to the latest standards for liquefaction-prone land and will be more resilient than the older building stock.

Building Code change to foundations Traditional foundation solutions contained within B1/AS1 were found to perform poorly on ground that is susceptible to liquefaction and lateral spreading during an earthquake. Therefore, Acceptable Solution B1/AS1 will no longer be used on ground prone to liquefaction or lateral spreading. To implement this change, the current limits for ‘good ground’ in Building Code clause B1 Structure have been adjusted.

Some cost concerns raised Feedback from public consultation in August/ September 2019 revealed that most of the building and construction sector believes that the change regarding liquefaction-prone ground will increase the cost to build on liquefaction-susceptible land.

However, this will be offset by a gradual increase in seismic resilience and a corresponding reduction in post-earthquake disruption to Kiwi homes.

Experience from the Canterbury rebuild also demonstrates that the engineered foundations, in time, are actually cheaper than conventional slabon-ground foundations due to increased availability and changes in supply and demand.

Key outcomes of the change to liquefaction-prone ground requirements include: ☐☐ Achieving greater resilience via appropriate initial geotechnical investigations ☐☐ Increasing sector efficiency through communication, collaboration and education ☐☐ Raising the awareness of the risk of liquefaction and its impact on land and buildings.

2-year transition period There is a 2-year transition period for these changes, giving everyone the opportunity to come up to speed with the requirements. During the transition, MBIE will run an awareness campaign (education and training) targeting the general sector and advising key stakeholders of Building Code updates.

Further information on the biannual Building Code updates programme is available at www.mbie.govt. nz/have-your-say, while the updated Acceptable Solutions and Verification Methods can be seen at www.building.govt.nz.

Codewords Quiz 1. During an earthquake, soil and water can combine to form a semi-solid material in a process called: a Liquid faction. b Liquefaction. c Quick sanding.

2. What report is required to assess whether a site is prone to liquefaction? a Geotechnical report. b Structural report. c Building services report.

3. Foundation solutions on land prone to liquefaction and/or lateral spreading will need to be: a Consented as a Verification Method or Alternative Solution. b Compliant with B1/AS1. c Consented as an Acceptable Solution.

4. When will the new changes regarding building on liquefaction-prone areas come into effect? a Immediately, they are already in effect. b In 2 years, allowing a transition period to map liquefaction-prone areas and increase awareness among stakeholders. c The changes are optional.

Answers: 1. b 2. a 3. a 4. b

This change means that foundation solutions on land prone to liquefaction and/or lateral spreading will need to be consented as a Verification Method or Alternative Solution.

by Kiran Saligame

ADD TO LBP ACTIVITY LOG This article is from Codewords Issue 95.

Use the ITM App to log your activity today.

Senior Geotechnical Engineer, Ministry of Business, Innovation and Employment (MBIE)

D DESIGN

S SITE

C

This article is relevant to these classes:

CARPENTRY

EP EXTERNAL PLASTERING

D DESIGN

BB BRICK & BLOCK LAYING

F FOUNDATIONS

S SITE

C CARPENTRY

EP EXTERNAL PLASTERING

BB BRICK & BLOCK LAYING

DF DESIGN FOUNDATIONS

EP EXTERNAL PLASTERING

26

On-the-job learning

LBP CODEWORDS

On-the-job learning was included as part of the LBP skills maintenance requirements in 2015. We recognised that many LBPs learn best by doing and that elective skills maintenance activities don’t capture learning on the job. looking up standards and other technical

Sometimes LBPs struggle to think of ideas for on-the-job learning, especially if they have been working with the same products and techniques for some time. While learning to use a new product or technique is a great example of learning, it’s not the only area of learning that is relevant.

☐☐ Health and safety – learning safer methods of

Identify on-the-job learning

☐☐ Professional skills – managing contracts, liaising

LBPs require a range of skills and knowledge to carry out their work effectively. Here are some areas relevant to LBPs you may wish to consider for skills maintenance:

guidelines. working, participating in site inductions, using new types of PPE or equipment with improved safety features. with clients, managing resources, supervising workers.

Some LBPs spend less time directly on the tools – for example, if they are undertaking more

☐☐ Regulatory knowledge – knowing your legal responsibilities, applying for building and resource consents, staying up to date with changes to the Building Code, participating in consultations.

management or oversight-type roles. It is a common

☐☐ Technical knowledge and skills – new products and techniques, putting theoretical knowledge into practice, learning from mistakes, refreshers,

site and hone their professional skills. LBPs working

misconception that these LBPs will struggle to complete on-the-job learning. However, LBPs overseeing projects will still need to maintain their regulatory knowledge, manage health and safety on in senior positions often supervise contracts, people and resources on the job. This type of work is

relevant to their LBP professional skills and can be used for on-the-job learning examples.

Elective activities vs on-the-job learning Sometimes it is less clear if learning should be classified as an elective activity or on-the-job learning if it was completed while at work. For example, you might take a first aid course as part of your employment. The on-the-job learning component of skills maintenance is designed to capture learning that doesn’t fit under an elective learning activity, as it occurs organically while you are on the job. A good rule of thumb is to consider listing the learning as an elective activity first, and then if it doesn’t fit, consider including it as onthe-job learning. For example, a first aid course is structured training, so it would fit as an elective activity.

Record your learning To record your on-the-job learning, you don’t need to write a whole essay, but you do need more than one sentence. For us to understand the value of your on-the-job learning, you need to briefly cover the following: ☐☐ Summary of the project or job and your role. ☐☐ What you learned. ☐☐ How this will improve your ability to work as an LBP.

Codewords Quiz 1. How many on-the-job learning records do you need to provide for each skills maintenance cycle? a At least two in total. b Two per licence class you hold.

2. A senior builder has been supervising and providing technical guidance to an apprentice. Can the senior builder also use this activity for on-the-job learning? a Yes, if they think the experience has improved skills relevant to their licence class, such as supervision and managing staff. b No, as they were not doing the building themselves.

3. Completing a first aid course should be: a Elective skills maintenance hours. b On-the-job learning.

You can also attach any relevant documents, such as plans, photos, records of work, specifications and meeting notes. It may be easier to fill in the record when you do the learning, so it is still fresh in your mind rather than waiting until your skills maintenance record is due.

D

DESIGN

EP

EXTERNAL PLASTERING

To learn more about on-the-job learning, check out the examples provided at www.lbp.govt.nz/ skills and our previous article in Build 157 (see www. buildmagazine.org.nz) and Codewords issue 77.

S

SITE

BB

BRICK & BLOCK LAYING

by Juliet Clendon

C Senior Technical Advisor, Occupational Licensing, MBIE CARPENTRY

This article is relevant to these classes:

F FOUNDATIONS

A

R ROOFING

ALL

Answers: 1. a 2. a 3. a

The easiest way to add an example of on-the-job learning to your skills maintenance record is to submit it to MBIE directly via the LBP portal online.

Alternatively, you can download the record of onthe-job learning form and send it in the post. There are also industry providers who offer tools to assist LBPs in collating their skills maintenance record, but you need to ensure these records are passed on to MBIE when your record is due for relicensing.

ADD TO LBP ACTIVITY LOG This article is from Codewords Issue 95.

Use the ITM App to log your activity today.

28

FISHING

It’s time we addressed this madness The common definition of insanity is doing the same thing repeatedly and expecting a different result. Equally bizarre is the expectation that bulk harvesting our precious fish stocks will deliver the wealth and prosperity we need to get our economy back on its feet. A radical change in thinking and behaviour is required.

LegaSea has developed the Rescue Fish policy because now is our opportunity to change how we do things so our kids have a brighter, more sustainable future.

The system has failed In 1986, New Zealand adopted an experimental regime called the quota management system. The objectives were to rebuild severely depleted inshore fisheries and make commercial fishing more viable.

Theory being that if people had a stake in the fishery, a property right, they would nurture it back to health.

Over time the catching rights have been monopolised into fewer hands and the husbandry aspirations have been crushed under the weight of industrial trawl nets.

Consequently, we now have hard working commercial longliners paying $4.50 per kilo for bait while earning $4.30 a kilo for their catch.

It doesn’t stop there. Then we export our low value fish for commodity prices with little or no value added – bulk exports earning less than $3 per kilo for many species. Some companies even export jobs, sending product to China for processing before on-selling to global markets, including back to New Zealand.

that the economic recovery of our seafood sector is dependent on having more abundant fisheries.

It starts at the top We need to institute policies that demand fish stocks are managed at much higher levels, for the benefit of all New Zealanders.

We need courageous leadership now, so LegaSea has sent the Rescue Fish policy to the Prime Minister, Jacinda Ardern, the Minister of Fisheries, Stuart Nash, and several other leading Ministers.

Our leaders need to understand that: 1. We must ditch the quota management system to stop the nonsense of bulk commodity exports with little or no added value.

2. The value from every precious fish caught needs to stay with the hard-working person who catches it, rather than being siphoned off by the quota investor.

3. We need to create opportunities for the next generation of inshore commercial fishers. These are the young entrepreneurs and innovators who would love to nurture the environment while making a living from the sea.

We can and must do better As we emerge from COVID-19, we must ramp up the expectation that our fish exports can deliver greater returns for our country and the hard-hit regional communities that are home to many of our smallscale fishermen.

Increasing catch rates and earning higher returns for each fish caught is achievable, if we recognise

To effect change, we need to stand together and show the Government how much we care.

Sign the Rescue Fish petition at rescuefish.co.nz/petition. www.rescuefish.co.nz

29

Combining strength and speed, Windsor Architectural Hardware has launched a new fitting system for two of their door hardware ranges.

The NZ designed and patented system, rapidFIT®, has been designed to create a faster installation process and adds strength to the handle on the door.

The system uses one simple 48mm cropping hole in the side of the door in place of the three separate holes previously required.

Once the latch and striker plate are installed, rapidFIT® can be installed in under one minute.

This system can save installers an average of five minutes per door and at least half an hour per house lot.

These are supplied mostly preassembled in the packaging, one half of the handle set has the rapidFIT boss and spindle attached, leaving just two screws to be fitted through the opposite side into the rapidFIT® boss to secure the second handle in place.

The rapidFIT® system has been included with all passage and privacy handle sets in Windsor’s popular Futura and Galaxy ranges.

The rapidFIT® system is designed to hug the latch mechanism securely inside the door, reducing the chance of any movement of the rose over time.

For more information and an installation guide for the handle sets with the new rapidFIT® system, visit windsorhardware.co.nz/how-to-videos

DOOR HARDWARE

Windsor’s new rapidFIT® system

30

NEW PRODUCT

Abodo’s Cardrona Cabin No longer can we use slow grown, imported timbers to build premium homes and structures in our country.

The Cardrona Cabin is a showcase of what can be achieved when we think differently.

Abodo timbers are sourced from FSC® certified, rapidly renewable New Zealand plantations that help to mitigate climate change by absorbing vast amounts of carbon.

Using state-of-the-art thermal modification and grain orientation technology, we can craft beautiful timbers that stand the test of time, without disadvantaging future generations.

Carefully crafted timber Designed as a showcase for Abodo, this seemingly simple cabin embodies their motto: Carefully Crafted Timber.

Set in the heart of Cardrona Valley, in the South Island’s harsh alpine climate, the cabin demonstrates the durability, along with the beauty of Abodo timber products and processes.

Externally, the slatted Vulcan Screening in Sioo:x Finish is designed to age and weather to the grey tones of its rocky environment, while the concrete base is imprinted with the grained texture of timber formwork.

The interior reflects warmth, texture and heart with a crafted carpentry of exposed timber structure, and highly grained timber panelling evocative of sarking in early period cottages in the area.

For more information go to abodo.co.nz/cardronacabin Photography credit: Simon Devitt

CLEAN UP

Prices valid June 15th - July 31st 2020, or while stocks last.

Industrial Cleaner and Degreaser

Antibacterial Cleaner Concentrate

#SG130025IND – 750ml / #SG13003IND – 4L

#SG350032 – 4L

• Concentrated formula • Clean, degrease and deodorise all washable/water-safe surfaces • Cuts through tough grease, oils, built-up grime and residue • Non-toxic, septic tank safe.

• Formulated for professional and commercial cleaning. Kills 99.99% of germs • For use in public areas like toilets • Non-toxic, septic tank safe

750ml

4 litres

$13

$24

EXCL GST

$35 EXCL GST

EXCL GST

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FOR YOUR NEAREST ITM STORE PHONE 0800 FOR ITM OR VISIT ITM.CO.NZ PRODUCTS ON PROMOTION: All prices exclude GST. Prices are valid June 15th - July 31st, 2020 unless specified otherwise. Some products may not be available in all ITM stores, but can be ordered in. FREE ITM Dry Bag: Applies to purchases made between June 15th - July 31st 2020, and strictly only while stocks last. Please note, unless stated, the $250 (excl GST) qualifier for the FREE ITM Dry Bag applies to the products on the specified page only and cannot be made up of products purchased from other pages. Purchases must be made on one invoice/account. Offer is limited to one per customer.

Protect yourself and others from COVID-19 Wash your hands with soap and water often (for at least 20 seconds). Then dry.

Cough or sneeze into your elbow or by covering your mouth and nose with tissues.

Clean and disinfect frequently touched surfaces and objects, such as doorknobs.

Donâ&#x20AC;&#x2122;t touch your eyes, nose or mouth if your hands are not clean.

Put used tissues in the bin or a bag immediately.

Stay home if you feel unwell.

For updates and more information on keeping yourself safe, visit Covid19.govt.nz