Canterbury Rebuild Magazine November 2014 Issue 39

ISSUE 39

NOVEMBER 2014

COMPLIMENTARY COPY

magazine

THE INFLUENCERS PG 4&5

City Development Shortlisted for Award

Technology Propels EQ Engineering Forward

Foundations Laid for Bus Interchange

The GUIDE to Canterbury’s Residential & Commercial Rebuild

Issue 38 November 2014

River inspired architecture illustrates Chch commitment pg 18-23

Publisher Metros Publishing Group Ltd Managing Director: Trevor Laplanche e: trevor@metros.co.nz Sales Enquiries e: canterburyrebuild@metros.co.nz Editorial Enquiries e: melinda@metros.co.nz 16 Leslie Hills Drive, Riccarton, P.O. Box 9362, Christchurch, NZ Ph: (03) 343 3669 Fax: (03) 343 3659

Construction begins on entertainment precinct pg 31

cover While 151 Cambridge Terrace is still a work in progress, the six level, base isolated office building totaling 7,328m2 on the Avon River precinct boundary is already a spectacular city addition.

Prime Minister John Key, Canterbury Earthquake Recovery Minister Gerry Brownlee, and Christchurch Central MP Nicky Wagner, discussing rebuild progress in the city centre, in this issue’s Influencers columns on pages 4-5.

For all

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Welcome Editor’s note.

I purchased my first house in 2005 for $177,000. I purchased my second in 2013 for $320,000. Same square meterage, same suburb, two kilometres apart.

According to data from REINZ, house prices in Christchurch are continuing to rise, reaching a new record median price in May of $436,000 – or let’s say, around five times the annual income. Thankfully I like to renovate.

With rising house prices and an increasing population, the home ownership dream is rapidly diminishing. So it seems the quintessential quarter acre dream has been reduced to a 350 square metre subdivided section from which you can whisper to the neighbours and they’ll still hear you.

I do sometimes have concerns about whether my children will have the freedom of home ownership one day, but I also know my parents had the same concerns when interest rates hit the double digits. And, being the glass half full kind of person I strive every day to be, I can see light at the end of the tunnel and I can see the regional and national efforts to counteract these residential restrictions.

This issue we look at the new partnership between Fletcher Building and the Government, established to construct a range of affordable new homes within the city over the next two years.

We look at local building company Generation Homes which is carrying out remedial work on TC3 zoned sections and offering house and land packages on these properties as a low cost housing alternative.

There is huge momentum in the city’s housing recovery with a new home build rate of 12 homes a day. I, for one, will be hoping the average Cantabrian can afford to buy them.

Editor Canterbury Rebuild Magazine Melinda Collins

First tenant for city’s south west super development pg 42-43

Contents 7: Improved name to match improved premises 11: Asbestos website launched for local homeowners 18-23: River inspired architecture illustrates Chch commitment 24: Overseas architectural firm bursts into NZ scene 25: NZ's high-skill industries drive staffing demand 28: Additions to affordable inner city housing 31: Construction begins on entertainment precinct 32: Need help deciding about a managed repair?

36: Assessing risk in the workplace 41: Predicting multi-storey quake damage 42-43: First tenant for city’s south west super development 45: Developing affordable housing options on TC3 land

Canterbury Rebuild November 2014 3

CanterburyRebuild - The Influencers

Poto Williams Labour MP Christchurch East

W

For all sorts of reasons, housing will be significant as the big issue in a successful rebuild for our people and our city. All the pressures of a speculative housing market felt in Auckland, in particular, are amplified here as competition increases by homeowners desperate to replace homes as more insurance money flows into the region.

Landlords are experiencing very healthy returns and they are able to command heavy increases in rent and demand short term leases and extra fees. This not only prices people out, but advantages those with the income or the payout to match.

Many have asked why rent caps could not have been introduced, tightly controlled and time specified. While I sympathise, I can see the problems with driving some less than scrupulous landlords to 'under the table' activity that further diminishes a tenant's ability to get a fair deal. Increases in rent are reported to be in the region of 40 percent plus, without the corresponding increase in income level to match.

Resources already stretched in communities to support low income families, are further burdened by families desperate to find suitable accommodation and the overcrowding so readily accepted in the recent months post-quake are no longer tolerable. This impacts the health and wellbeing of those affected and can damage relationships at a time when we all need each other to get through. Families deserve better and it is up to the Local and Central Government to ensure the provisions of the Housing Accord are fulfilled, though currently there seems little in the way of practical bricks and mortar.

Hold ups could occur freeing up sufficient suitable land, consent processes still need to be improved and the parties live up to the partnership expressed within the Housing Accord. It is an opportunity too vital to get wrong and I know the partners are doing their level best to get this right. So what practical support can I offer to the constituents? Well, I continue to advocate for social housing on an individual level as well as at the national level, and I have used my networks to develop local collaborations to support the most vulnerable and needy to have access to additional services. I must support the Christchurch City Council's desire to become a social housing provider so they can access support from the government. But this is an issue of supply, and overwhelmingly the answer is to fast track the building of houses, to increase the numbers of social housing units available, rather than just provide the mechanism for the build of the houses to occur.

If the statements about reducing child poverty are going to have any chance of becoming a reality, then Housing needs to become the Government’s major priority. Take a leaf out of Labour's history of building homes, we are happy to share, because it is in the best interest of our people.

4 November 2014 Canterbury Rebuild

N

Lianne Dalziel

Rt Hon John Key

Christchurch Mayor

Prime Minister

ext year we will have the perfect opportunity to showcase our city, both nationally and internationally, when Christchurch plays host to a number of worldclass events.

2015 is a big year in the events calendar, starting in February when the ICC Cricket World Cup comes to town. This tournament is one of the world's most viewed sporting events and is considered the flagship event of the international cricket calendar. Our city is fortunate to be hosting the opening ceremony on 12 February as well as the opening match two days later. In our journey of rebuilding our city we have created a new world-class cricket facility at Hagley Oval, the first of the city's key anchor projects. Given its location, this new facility is in one of the most picturesque sporting locations in the world.

It's been nearly 30 years since we hosted the Te Matatini National Kapa Haka Festival, but in March 2015 top kapa haka teams from New Zealand and Australia will take part in the world's largest celebration of Maori traditional performing arts.

This will generate at least $6 million for the region, involve 1,800 performers, provide work for 1,300 people plus 400 volunteers, and entertain more than 30,000 people over four days.

In May and June the FIFA U20 Men's Football World Cup takes centre stage and we will host six pool matches, one round of 16 match, one quarter final and one semi-final. This is FIFA's second largest event in the world's largest sport and predictions are that Christchurch will gain 15,000 international visitor nights and 9,000 domestic visitor nights, with an estimated net region cash flow of $4.3-$5.4 million.

The eyes of the world will be on Christchurch next year thanks to these global events and with an international television audience of millions what better way to show how far we've come with the city's rebuild.

As a proud host we will welcome visitors here for these events, but we also want to send a clear message to them that we want them to come back. If we can host these people while our city is still in the process of reinventing itself, imagine what it will be like in the future. When they return for another taste of Christchurch hospitality the central city's retail precinct will be up and running, 16 other key anchor projects will be underway or nearing completion, new hotels will have sprung up around the city, our horizontal infrastructure will be fixed and our homes will be rebuilt or repaired.

As a city we all must embrace the opportunity these fantastic events will bring us ‌ it provides an ideal platform to entice people to come back and visit our city to see first-hand just what we've achieved.

E

very time I visit Canterbury there is something new to see, and this busy rebuild phase is only going to ramp up over the next few years.

We are making great strides with key Anchor Projects.

From the Justice and Emergency Services Precinct, to the Bus Interchange, to the Avon River Precinct, these projects are contributing to the city's busy construction activity, alongside the commercial construction in the CBD, especially in the Retail Precinct.

Construction of The Terraces project, part of the Avon River Precinct, is now underway.

Once completed, The Terraces will extend from Cashel to Gloucester streets and will be an open waterfront space linking the Avon River with public spaces, shops, and restaurants.

People will be able to come to the city and relax by the water's edge, and enjoy live performances and events.

The scale of some of these anchor projects shows just how much effort and investment the Government is putting in.

Hundreds of truck-loads of cement were recently poured for the Bus Interchange, the largest concrete pour in Christchurch since the earthquakes.

The Interchange is expected to be up and running by next winter.

Nearly 1500 square metres of concrete is being poured for this project, but it's dwarfed by the extent of the concrete pour at the Justice and Emergency Services Precinct site – where some 9,600 square metres of concrete is needed.

The Government is making progress with repairing its housing stock. Housing New Zealand is passing the halfway mark in its plans to repair 5,000 earthquakedamaged properties, with more than 200 houses being fixed every month.

In the central city, road and pipe repairs will be 90 per cent complete by Christmas and, across the city, the horizontal infrastructure rebuild programme is more than half complete.

While there is still much to be done, we are moving further and further into the rebuild phase and this is set to continue for some years to come.

I firmly believe that the new Christchurch won't just be as good as it was before, but better, and a great place to live, work and raise a family in.

The Influencers - CanterburyRebuild

Peter Townsend

Antony Gough

Metiria Turei

Canterbury Employers’ Chamber of Commerce

Central city developer

Green party Co-leader

T

he further we get into the rebuild the more accurate the figures become with regards to the total cost of the rebuild and where we are at in terms of the recreation of our city. The $40 billion figure that has been touted now for many months, and was initially based on a lot of very raw data and estimation, is proving to be remarkably accurate. It looks now as if the total residential recovery cost will be very close to $20 billion.

This includes all insurance cover, EQC and private insurers, and a margin for improvements. Whether or not it covers all cost escalation remains to be seen. The total commercial and public sector rebuilds have a combined value of around $16.1 million. Infrastructure costs look as if they are going to fall to around a total of $2.9 billion at this stage. It adds up to $39 billion and those figures are based on information provided by the Insurance Council, MBIE and CERA, together with private sector analysis and are looking more and more robust by the day.

Given that the construction of our city is advancing rapidly, it is a fair guess that we are around 25% into the rebuild of our city with horizontal infrastructure probably the most advanced, followed by housing and then the commercial rebuild. The public sector rebuild, although well planned, still has a long way to go.

It is really important that we continue to refine these numbers and continue to get the most accurate fix we can on the total cost of the damage, the total cost of the rebuild (taking into account betterment and cost escalation), and the stage we are at in terms of the recovery and the rebuild.

From a timing perspective we are probably a third of the way through the rebuild in total, however we can anticipate a relatively long tail in some sectors of the rebuild, particularly some of the more complex private sector commercial construction where resource constraints may come into play.

Importantly we are on track, there is a lot of money being spent (now estimated at $100 million per week, every week) and progress is becoming more and more obvious. The insurance industry tells us that they are about 20% through the repair and rebuild of insurance managed claims and that half of the over capped claims, equally about 11,000 homes to be replaced or rebuilt, have been cash settled. We have estimated that that sector of the household repairs could add up to over $5 billion which is cash in the hands of owners who will either buy property or repair or rebuild their existing dwellings depending on their circumstances.

It is exciting when a massive amount of financial resource and energy is going into the rebuild and that is obvious by what we can now see around us every day.

W

S

ater in Canterbury is a hot topic.

Environment Canterbury's (ECan) proposal to allow more pollution from irrigation and intensive agriculture in the Selwyn Catchment is currently before a hearing panel.

This pollution will have negative effects on the water quality of our rivers, as well as drinking water supplies.

At the recent ECan hearing on the plan variation, the Canterbury Medical Officer of Health, Dr Alistair Humphrey, raised concerns about the impact of the proposal. His evidence highlighted his concerns about the impact of the proposal on people's ability to swim in the Selwyn River, and the prospect of water pollution affecting drinking water supplies.

Dr Humphrey advocated that ECan set water quality targets for recreation in the Selwyn that ensure the Selwyn is safe for swimming, or at the very least, see reduced water pollution.

But it's not just the impact on our ability to safely go for a swim, or take the dog for a walk. The proposal also will affect groundwater – the source of people's drinking water. ECan's proposal would result in elevated levels of nitrogen in the aquifers connected to the Selwyn river system. While the proposal includes plans to dilute the nitrogen using clean water from higher in the catchment – the target levels are set above regional targets.

Dr Humphrey has called for more conservative limits on nitrogen levels. What is proposed is dangerously close to the maximum limit and leaves little room for error.

Cantabrians have enough on their plates without having to worry about whether their famously clean drinking water is safe or not; it should be a given.

pring has sprung and so are the new buildings in the centre of the Christchurch. Work is processing now on three separate sites in the retail precinct with Nick Hunt's Cashel Square building on Hereford Street already 3 storeys up. Ground remediation has been completed on the Cashel Street side in preparation for this side to start building. Tim Glasson's Triangle Centre has started work on site with Leighs Construction. And my Terrace project has been quietly having its steel building frames erected showing the Oxford Terrace building outline now.

Grand Central, where the Grand Chancellor Hotel was, has now been fenced and work has started on a seven story high office building here.

Steve Collins' Deloitte House is progressing well with its distinctive glass vertical fins now appearing. This is a very striking building that sets a new high bench mark for Christchurch buildings.

A number of other buildings are rising up along Durham and Cambridge Terrace. Every week this landscape is changing as the rebuild rolls into the city. This is such an exciting time as one watches the skeletons of buildings going up and I cannot wait to see its finished form.

The Wynn Williams building on the corner of Montreal and Hereford Street is due to finish in October with the anchor tenant Wynn Williams to move in at the month’s end.

The original loop for the tram is being readied for reopening in November 2014. Downers are actively working on raising and straightening the new tram lines along Oxford Terrace between Cashel and Worcester Streets. It is hoped this second loop will be operating by February 2015 for the Cricket World Cup. Restart has settled into its new home close to the Bridge of Remembrance on the south side of Cashel Street.

The bus exchange and justice precinct are now well into build mode.

It is worth a trip into the city to see all the new buildings progressing as our CBD is showing its new face across the city.

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“The Government’s answer to Christchurch’s housing challenge is increased supply, with a particular focus on new homes priced for those on modest incomes.”

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Spec Houses - The Builders Dream or a Nightmare Waiting To Happen?

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Lester Bryant Managing Director

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any Builders are considering doing their rst spec house (spec house = they build it and hope to sell it during or after construction).

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property buyer looking to buy direct from a builder believes that they will get a soon to be completed home at a cheaper price (no sales agents involved) with a bit more say on the choices compared to the group housing companies. Occasionally the buyer has a preconceived dislike for the larger companies either from a real experience or some anecdotal story that leads them towards a smaller builder. In one sense a part of the perception problem is already solved. As they are buying a house being built they already have determined the location is good. But the risk of perception getting in the way of the sale still exists.

What gets in the way of the sale?

One of the major difculties is negotiating with condence. Prospective buyers will frequently test a builder’s resolve or have a benchmark price in mind. Unless the builder has mastered the art of mind reading what starts as a friendly and seemingly straight forward process degrades into multiple requests for adjustments and client side obscurity as to what the end should be. Let’s face it, the builder wants to stick to what he was building (variations can be much more costly than what can be charged for them) and the buyer seems to want

This question now poses the builder with three problems:

A S QS

Asset Sure Quantity Surveying

1.

2.

3.

Should the builder negotiate If the builder negotiates, how low to go before it hurt Should the builder hold rm on the price and wait for a better

The solutions lie in these three areas: 1.

2.

3.

Salesmanship – can the builder talk the talk and close a deal without burning excessive hours better spent elsewhere?

Pricing with detail (using square meter and other rates just doesn't work) – really understanding the true cost of construction and the real prot in the job Market Intelligence – knowing exactly the state of play in the market between supply and demand For a builder to build successfully build and sell spec houses, he needs to be far more than a jolly good builder.

Learn How To Profit From Spec Houses If you're a builder and contempla ng building a spec house or two, register for this 90 minute workshop . The workshop is on Monday 24th November at 6:00 pm. For more details email lester@asqs.co.nz

Canterbury Rebuild November 2014 29

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No longer do people need to be content with conventional and standard downlights, but they can select from innovative, striking products that signiicantly increase the value of a home.

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Call us today to discuss your requirements 03 349 4040 or 021 213 0698 After Ofce

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“We have a unique and valuable opportunity to verify and improve the accuracy and usefulness of the various methods and models used to analyse building performance.”

Maximum Value, Maximum Variety. Ÿ Ÿ Ÿ Ÿ Ÿ

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CONNOR CONSULTING CIVIL & STRUCTURAL ENGINEERS specialising in Commercial and Industrial Design and Construction HELPING REBUILD CHRISTCHURCH and pleased to assist Apollo Projects at Santa Rosa

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(SOUTH ISLAND) LIMITED

At Topcoat Specialist Coatings SI Ltd, we can provide the floor finish to fit your business requirements.

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Somewhere to turn for

unbiased advice Thousands of people have had their foundations shaken by the earthquakes, and we're not just speaking guratively, but also emotionally.

M

any still live in turmoil, with no decisions on the future of their home, or decisions they suspect are unfair or wrong. With shaken condence, confusion and inability to sort fact from ction, where do you turn for unbiased, professional advice that is based on the truth… and nothing but the truth and the cold hard facts?

Quantity surveyor, Victoria Whitta, director of Red QS has always been outspoken about standing up for the "little guys". "We simply want to help people move forward with their lives. We are Christchurch people who genuinely care about homeowners getting clarity and resolution about their homes repairs or rebuilds."

Red QS cares so much it is offering a charitable duo - a free 20-minute consultation with a qualied quantity surveyor in return for a $20 donation to Canterbury Earthquake Children's Trust.

"Sometimes people might not need a QS, or need one yet, but I can sit down with them and look at the big picture and make recommendations and referrals on where they would be best to go next to bring about resolution."

Victoria says the role of a quantity surveyor naturally encompasses the big picture. "We do not look at bits of a project, it's our job to be able to put a cost against an entire job. This gives us a broad perspective."

For example, Victoria worked with a client who had been given the jack and pack repair method initially until an independent engineer proved a foundation replacement was required, but due to a protected tree she identied in front of the property, the house could not be lifted and moved to undertake the repair, and so it became a rebuild."Leading up to Christmas, we really want to help more of the people who are unsure about the future of their

Qualied quantity surveyor and afliate member of the NZ Institute of Quantity Surveyors (ANZIQS), Victoria Whitta of Red QS is supporting charity by offering free consultations to homeowners needing independent, professional advice on where to head with insurance claims that are in dispute.

"WE SIMPLY WANT TO HELP PEOPLE MOVE FORWARD WITH THEIR LIVES. WE ARE CHRISTCHURCH PEOPLE WHO GENUINELY CARE ABOUT HOMEOWNERS GETTING CLARITY AND RESOLUTION ABOUT THEIR HOMES REPAIRS OR REBUILDS."

homes. We invite them to take advantage of this charity offer. We are completely independent and can provide professional guidance."

It might be as simple as discussing the offer you have from your insurance company to get a professional opinion on whether it's fair, or help managing a much more complex investigation such as whether foundation damage is

historical or quake related.

"Come in and talk it over. Every case is entirely different and we want to help people sort out what is fact and what isn't. Most of all we just want people to be able to make informed decisions and get on with their lives.”

Red QS can be contacted on 928 1107 and at redgroup.co.nz.

BEWILDERED about your house pricing?

Ring RED for a second opinion

Ph. 928 1107

EQC Quotes & Overcap Repairs 46 November 2014 Canterbury Rebuild

239 Opawa Road

Tendering

Scoping

www.redgroup.co.nz

New Builds

Job Management

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Canterbury Rebuild November 2014 47

Repair, Rebuild or Cash Settled Design There is much more to good design than just fitting a house on your section

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