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AU T U M N 2018

ARE YOU USING MITRE 10 TRADE HUB YET? SEE PAGE 11

Y L R E T R A U Q

STAY WELL! WHY WORKSITE WELLNESS MATTERS HOW SAFE IS YOUR SITE SCAFFOLDING? MARK-UP VS MARGIN: WHAT’S THE DIFFERENCE?

LOOKING AHEAD

NELSON FIRM BUILDS FOR THE FUTURE

mitre10.co.nz/trade

This publication contributes to LBP points under the Skills Maintenance Scheme


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required. No more gas, no cost, no waste. Absolutely zero ramp-up time. The nail gun is always ready to fire from standby. Consistent power and drive, powered by Hitachi’s unique Air Drive technology.

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CONTENTS

IN THIS ISSUE

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9 GETTING HANDS-ON EXPERIENCE

Mitre 10 MEGA Nelson hires three talented apprentices.

9 TIMARU SUPER SHOT WITH TOM WALSH

A world-class shot put competition comes to the South Island.

11 SAVE TIME WITH THE MITRE 10 TRADE HUB

Order online 24/7 and save time on calls and emails.

12 ONSITE WELLNESS STRATEGIES

Keeping workplace wellness front of mind for business success.

15 A CONSIDERED APPROACH

Nelson-based Kennedy Construction is building for the long term.

22 BUILDING WITH STRUCTURAL INSULATED PANEL (SIP) SYSTEMS

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19 NOVATED CONTRACTS: WHAT’S THE RISK?

It’s important to ensure risk is spread fairly.

24 STORAGE AND STACKING OF GIB® PLASTERBOARD

20 THERE’S MORE TO CONSTRUCTION THAN JUST AUCKLAND

The benefits of using SIP systems for healthy home builds.

Infometrics discusses trends around the country.

A handy recommendation guide for handling plasterboard.

27 MYTHBUSTING: LOW-LEVEL SCAFFOLDS

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Making sure you’re competent with scaffolding, thanks to Site Safe.

28 FEES FREE FOR APPRENTICES

New government fees free initiative looks to address skills shortages.

29 APPRENTICE WELFARE ONSITE

Give your apprentices a safe start to their career.

31 NZCB ANNUAL AGM, CONFERENCE, AND EXPO 20TH ANNIVERSARY

A look ahead at this year’s special NZCB event in Rotorua.

33 MARK-UP VERSUS MARGIN: WHY THE CONFUSION?

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Know the difference to ensure a profitable sales price. M I T R E 10

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Great add-on sales opportunity Just 10 minutes to install! Keep customers’ drains and water tanks leaf free with the new Marley Curve. Quick and easy to install, why not recommend a full houselot (i.e. one per downpipe) if your job is in a rural or leafy area.

Why your customer needs Curve: 1. Improves water quality and reduces system maintenance if on tank supply 2. Reduces the chance of drain blockages 3. Performs better than other residential leaf diverters - 99% water retention* 4. Stylish, looks better than other diverters so won’t affect the appearance of their house 5. Made in NZ for NZ conditions and carries the Marley 15 year guarantee 6. Available in white and all the Marley Stratus Design Series® colours

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QUARTER UPFRONT

The issues of risk and reward have never been more relevant; and our autumn edition of Trade Quarterly has timely articles on the increasing popularity of what are called “novated contracts”, where the client novates across the design to the construction company (along with the inherent risk). There can be a few fish hooks, as David Kelly of Registered Master Builders points out on page 19. Ever feel like you and the team are working really hard and not making the money to show for it? It pays to know the difference between your margin and your mark-up. You don’t need to be a maths genius to work it out – the Trades Coach explains on page 33. I always love to read about a good build, and there’s a real feeling of quality that comes out of the work of Nelson-based Kennedy Construction. They’re in it for the long haul and it shows in the quality of their work – ably backed by our Trade Team at Mitre 10 MEGA Nelson. Check out the story on page 15. For a long time, the property and construction story has been all about Auckland, but this month, Infometrics tell how it’s time for the Waikato and Wellington to have their day in the sun, while Tauranga and Canterbury take a breather (page 20). The key point here is that the five-year forecasts show continuing construction levels in every region well above the trend from 2008 to 2017. I don’t think we’ll be putting our feet up any time soon. Enjoy your read and have a cracker and safe year ahead.

ARE YOU USING MITRE 10 TRADE HUB YET? SEE PAGE 11

AU T U M N 2018

2018 HAS ALL the hallmarks of a defining year for the New Zealand construction industry. Call it the paradox of having plenty of work on, but one of our largest construction companies has announced significant write-downs and signalled a withdrawal from the vertical construction market. Nobody wants to see a loss of capacity from the industry, but it does mean a cascade of opportunity for others – and it’s a lesson for all about the need for a prudent approach in good times and bad.

Y QUARTERL

STAY WELL! WHY WORKSITE WELLNESS MATTERS HOW SAFE IS YOUR SITE SCAFFOLDING? MARK-UP VS MARGIN: WHAT’S THE DIFFERENCE?

LOOKING AHEAD

NELSON FIRM BUILDS FOR THE FUTURE

This publication contributes to LBP points under the Skills Maintenance Scheme

mitre10.co.nz/trade

Experienced Nelson builder Neil Kennedy knows strong relationships with staff and suppliers are key. Read more on page 15.

Mitre 10 Trade Quarterly is published four times a year in association with Mitre 10. Managing Editor Adele Thurlow Art Director Marc Backwell Sub-Editor Katherine Granich Contributors BCITO, EWP Services, ITAB, GIB, Infometrics, NZCB, NZSIP, RMB, Site Safe Print and distribution PMP Limited Editorial enquiries Chocolate Fish Media adele@chocolatefishmedia.co.nz Advertising enquiries marketingsupport@mitre10.co.nz

Derek Heard General Manager Trade

Private Bag 102-925 North Shore City, Auckland 0745 mitre10.co.nz/trade

In between issues of Trade Quarterly, catch up on the latest Mitre 10 Trade and industry info by visiting the Mitre 10 Trade Blog – go to mitre10.co.nz/trade and click on the “News” tab to access the blog.

THIS PUBLICATION IS RECOGNISED BY THE BUILDING AND HOUSING GROUP AS CONTRIBUTING TOWARDS THE SKILLS MAINTENANCE REQUIREMENTS FOR THE LICENSED BUILDING PRACTITIONER SCHEME. If you are a licensed building practitioner, cut out and safely retain this panel with your skills maintenance literature for future reference and audit confirmation. Ref: Trade Quarterly Autumn 2018

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Mitre 10 Trade Quarterly is subject to copyright in its entirety. The contents may not be reproduced in any form, either in whole or in part, without written permission of the publisher. All rights reserved in material accepted for publication unless initially specified otherwise. Opinions expressed in Mitre 10 Trade Quarterly are not necessarily those of Mitre 10. No responsibility is accepted for the suggestions of the contributors or the conclusions that may be drawn from them. Although Mitre 10 has made reasonable efforts to ensure accuracy, the reader remains responsible for the correct use and selection of any tools, materials, and systems followed, as well as compliance with all applicable legislation. Mitre 10 Trade Quarterly does not constitute legal advice and readers should consider seeking their own professional advice.

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FROM THE REGIONS

IN THE COMMUNITY Check out what’s been happening across the country.

NZCB Conference and Great Apprentice Race The NZCB Annual Conference is taking place on 25 and 26 May at the Energy Events Centre in Rotorua, and will mark NZCB’s 20th anniversary. The Mitre 10 Trade Team will be there, and we’ll once again be supporting the crowdpleasing Great Apprentice Race. See page 31 for more.

Mitre 10 MEGA Nelson expands trade yard Mitre 10 MEGA Nelson recently expanded their trade yard to 5000m2 including a 3000m2 covered area which has the biggest drive-thru in Nelson. The new space has a more efficient layout for customers, and the team has also invested in a larger area for landscaping supplies to cater to their growing base of landscaping customers.

Mitre 10 MEGA Palmerston North Distribution Centre Mitre 10 MEGA Palmerston North’s new trade and distribution centre is set to open in April. The new 3350m2 building will provide a significant boost to the amount of trade supplies and retail goods the store will have available.

Timaru shot put event

Superhome Movement – Blink and Your House Is Up Mitre 10 Wanaka, in association with Superhome Movement, will host their next talk in March. “Blink and Your House Is Up” will look at insulated concrete slabs with side insulation, Structured Insulated Panels (or SIPs), and using membranes and tapes to increase airtightness and manage moisture in the home.

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In March, Timaru will play host to an international shot put challenge – sponsored by Mitre 10 MEGA Timaru and NZCB. World Champion and Olympic medallist Tom Walsh will host a lineup of world class athletes as they put on a show of athletic talent for locals at the Caroline Bay Soundshell. See page 9 for more.


FUTURE BUILDING

GETTING HANDS-ON EXPERIENCE IN 2017, SEVERAL pre-trade and carpentry students from Nelson Marlborough Institute of Technology (NMIT) helped out during Mitre 10 MEGA Nelson’s Helping Hands project to renovate a bathroom for a deserving local family. During the build, Mitre 10 MEGA Nelson’s Marketing Manager, Murray Leaning, noted that three of the apprentices – Lucan, Quintal, and Hapy – were all outstanding workers. “Our store was looking for staff at the time, so I asked if they wanted some weekend work, and they did. I recommended them to the right people, and we were so impressed that we hired them.” One of the apprentices, Hapy, says he loves the fact he is constantly learning on the job. “I’m not just learning about timber, I’m learning about all the products Mitre 10 supplies to builders in the industry. The amount of knowledge I am getting from the more experienced members of the team is priceless.”

Murray says Mitre 10 MEGA Nelson has a strong partnership with NMIT. They have worked together on several Helping Hands projects and the store also attends their trade open day and graduation, and offers scholarships to students.

“We also host barbecues where our team can talk to the students about the industry and are starting the ‘NMIT MEGA MOB’ project, where groups of NMIT students can sign up to join our Helping Hands crew on a few projects throughout the year.”

TIMARU SUPER SHOT WITH TOM WALSH

THIS MARCH, TIMARU will play host to an international shot put event sponsored by Mitre 10 MEGA Timaru and NZCB. The Timaru Super Shot promises to be one of the biggest sporting events of the season, with World Champion shot putter and part-time builder Tom Walsh set to host some of the world’s best athletes in his hometown of Timaru at the Caroline Bay Soundshell. Mitre 10 MEGA Timaru is working with local builders and event organisers to design and build a special temporary

event arena in the Soundshell, giving residents the chance to watch worldclass sport right in the centre of the city. Tom says he’s excited to be hosting this event in Timaru, and to be bringing some of the world’s best shot putters to his hometown. “Nearly all of my elite-level competitions take place in Europe or the USA, so having an event of this calibre in Timaru is very special. The local community have been hugely supportive and we’re hoping for a huge crowd down at the Soundshell,” Tom says.

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Date: Wednesday 14 March 2018 Venue: Caroline Bay Soundshell, Timaru Time: 5pm to 7.30pm Spectator cost: Gold coin donation M I T R E 10

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THE NEW MITRE 10TRADE HUB LET YOUR FINGERS DO THE HEAVY LIFTING

Run your business on the go with the new and improved Mitre 10 Trade Hub. • Faster estimates • Better product searches • Instant access to pricing • Easy to use on all devices • Custom-built for NZ tradies • Free to all Mitre 10 Trade account holders Whether you’re in the office or on location, Mitre 10 has got you covered. To learn more, contact a Trade Account Manager at your local Mitre 10.

Visit mitre10.co.nz/trade


TRADE HUB

SAVE TIME WITH THE MITRE 10 TRADE HUB

Order online 24/7 and save time on calls and emails – all it takes is three easy steps. CREATING ESTIMATES AND ordering products has never been easier. With the Mitre 10 Trade Hub, you can build your own estimate online or view estimates that have been created by your store – making it simple to review and place an order no matter where you are.

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FROM ONLINE TO ONSITE IN THREE EASY STEPS: 1. Create and view estimates online ■■ Create your own estimates online simply by adding items direct

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to your Trade Hub shopping cart from the “My Prices” and “Favourites” lists. It will use your account pricing to create the estimate and be ready to order right away. Estimates prepared by your Mitre 10 store can also be shared to your Trade Hub account so you can review and order the products online. TIP Include your order number so it can be displayed on your invoices.

2. Choose to collect instore or have it delivered to site ■■ TIP You can also include notes on your order request, including specific timber lengths. 3. Receive confirmation of your pickup or delivery time ■■ Your Trade Hub order will be sent to your home store and you will receive confirmation that your pickup or delivery time block is available.

Mitre 10 Trade Hub is free to use for all trade account holders. For more tips, help or advice, contact your Mitre 10 Trade Account Manager or click on the help icon at the top righthand corner of the page in the Trade Hub portal.

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ONSITE WELLNESS STRATEGIES Pauline Wrigley from Employee Wellness Programme (EWP) Services discusses onsite wellness and EWP’s partnership with NZCB. What is wellness? Wellness can often be thought of as an absence of disease or injury, but it is broader than that. It refers to a positive state of mind and body. Workplace or onsite wellness is usually visible through a healthy work culture, where there is high engagement between management and M I T R E 10

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staff and low turnover or absenteeism. This, in turn, creates a high-performing team that is more productive. NZCB’s partnership with EWP NZCB has recognised that the construction industry has high levels of stress, and wants to help address this 12

for its members. NZCB members will have access to EWP’s counselling service, along with a free one-hour consultation for business owners to discuss onsite wellness and assist with their responsibilities to address workplace stress under the Health and Safety at Work Act.


SITE SAFETY

need to look for these differences and, when you notice them, have the confidence and rapport with your crew to let them know you’re concerned and available if they want to chat about it. Creating a supportive environment 1 Have regular one-to-one chats with your crew members. Find out what’s working for them, what’s not, and what you as a boss can do to support them. 2 Provide your crew, especially the younger members, with the right kind of coaching or training to help them acquire personal skills that’ll help them to cope with the stresses of life and work. This can include things like being good with money, eating a healthy diet, managing a flat, and being aware of their mental state and wellbeing. 3 Take the time to let your crew know that they are valued. Make the effort to create an environment that encourages their input and ideas, and set aside time for team activities.

Industry attitudes There is a growing recognition within the industry of the value of incorporating wellness programmes into business practices. However, there is still resistance from those who feel it’s an unnecessary expense. The reality is that business owners who don’t invest in the welfare of their team are costing themselves productivity and competitiveness. If you don’t look after your employees, chances are, they’ll look to find a competitor who does. What to watch out for It starts with getting to know your crew and how they operate on a daily basis. That way you can tell if there are any sustained changes in behaviour, such as making mistakes, being late for work, or sudden mood swings. As a boss, you

How EWP can help EWP provides a confidential counselling service for individuals to discuss any work or personal concerns they need assistance with. They also provide a consultation service to help business owners work through what’s keeping them awake at night regarding wellness and staff performance. People can

THE VALUE OF WELLNESS

Miranda Knapton from Blue Summit Construction discusses the business impact of a well-run wellness programme. The impact it has on our business is measurable on our bottom line, at the very least. As we spend less hours dealing with behaviour issues, trying to increase productivity, and having to reprimand staff, we can focus on the business of building. We can focus our energy on developing the business, talking with clients, and developing a positive culture among the staff and owners alike. We simply recognise the value of keeping wellbeing at the forefront of our minds, and understanding how simple things like human connection can add value to someone, particularly in a world where technology and social media play a much larger part in our lives.

also go on our website and complete a workplace wellness check to get a snapshot of the key components of workplace wellness and the risk areas in their business. For more information, visit ewpservices.co.nz

TALKING WELLNESS AT WORK

NZCB South Canterbury Regional President, Dan Gallagher, talks about wellness from an employer perspective. It’s important to know your workers, especially the younger crew members, so you can catch it early when something’s off. This could mean a dip in performance, a dropoff in punctuality, or being withdrawn and not talking to colleagues. My best advice for anyone taking on apprentices and younger

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crew members is to spend as much time as possible working beside them over the first one to two months. Simply having a regular yarn will let you know more about what’s happening in their lives and in their heads. It also creates an understanding that you’re around if they need to talk. Trust your senior

employees to keep an eye on newer or younger crew members as well, and create an open-door policy where anyone can have a confidential chat. Spending time with your team, either during work or through social events outside of work, is the key to knowing when things are going well and when they’re not.

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CUSTOMER FEATURE

A CONSIDERED APPROACH

Nelson-based Kennedy Construction is building for the long term. PHOTOGRAPHY: KARAENAVINCENT.COM

NESTLED INTO THE hills overlooking Nelson, the Kennedy Construction team is working on a pretty special house build. The three-level, high-end architectural build has a total floor space of 280m2 and an eco-friendly design – with passive heating and triple glazing features included. Owner Neil Kennedy and his team jumped at the chance to work on a build where the clients were looking for the best, and they weren’t daunted by the prospect of aiming to deliver “an award-winning product”. “The design called for some major cuts into the hillside, and we had a big challenge early on getting the concrete tilt panels onsite,” says Neil. “Some of them were massive – up to 12.5 tonnes – and working on a narrow site meant negotiating with the neighbours to build an access road so a crane could lower each panel into position.” Neil says that over his 30-plus years in the trade, negotiating with neighbouring property owners to achieve a workable outcome has been a key part of every successful build. “Sometimes the biggest challenge can be simply tracking down the neighbours – it’s not always straightforward, and you need to be prepared for those possible delays. “Each situation can be different, but it helps to have a good track record behind you. As a business you need to have the credibility that you’re not ‘fly by night’ and are committed to sticking around and restoring the surrounding area before moving on.” That track record is something Neil

Owner Neil Kennedy (right) says Mitre 10 MEGA Nelson Trade Manager Mike de Veer (left) and Trade Account Manager Ross Hamilton are trusted team members.

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has carefully cultivated over the past three decades, as his business has gone through a few different phases. Initially, they started out building and selling one to two houses a year, and have steadily grown into a team of 20 staff and contractors who often run residential and commercial builds across multiple locations around the South Island. “One of the biggest decisions we made as a business was to approach IAG after the 2010 Christchurch earthquake, with a view to taking on some rebuild work. It took a lot of persistence, patience, and turning down some

smaller ‘patch-up’ jobs that weren’t what we wanted. But eventually, in 2014, we signed on to do architectural rebuilds across multiple sites at a time. “Since then, we’ve taken on a diverse range of jobs, including some work for DOC doing builds in different national parks. One build location was so remote that we needed helicopters to lift the LVL beams into place, so we need to be on top of our logistics and organisation, as these jobs can take crews away for a significant chunk of time.” To stay on top of things, Neil and his staff have built a strong team around them and developed good in-house systems. Neil’s son, Laird, is the company’s Operations Manager and says one of the keys to maintaining their good track record is in their online project management systems. “By using cloud-based systems that are accessible wherever our crews are, it means they have whatever information M I T R E 10

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The Kennedy Construction team uses cloud-based systems to make info about each build accessible wherever their busy crews are located – whether working at height or on the ground. 16


CUSTOMER FEATURE

The team of 20 staff and contractors run builds all over the South Island, but call Mitre 10 MEGA Nelson their “local”.

they need at their fingertips to manage the right work for each member of their the project efficiently,” says Laird. team – marrying up a list of project jobs “It’s ideal for keeping a record of work with each crew member’s strengths that backs up what you say and helps and weaknesses. defuse any disputes. It also builds a “We place a lot of trust in our senior ‘bigger picture’ that demonstrates each crew to know the best situations for part of the build and fills in the blanks each person onsite – which is usually between creating a quote and sending a mix of something they’re good at plus the final invoice. something which “Any business “WE PLACE A LOT OF TRUST IN challenges them,” is only as good says Neil. OUR SENIOR CREW TO KNOW THE BEST SITUATIONS FOR as its people and “We also have EACH PERSON ONSITE the systems it has a few apprentices – WHICH IS USUALLY A MIX OF onboard at any in place to make SOMETHING THEY’RE GOOD sure everyone is given time, and AT PLUS SOMETHING WHICH on the same page. we’re very careful CHALLENGES THEM.” We’ve learned a about whom we lot over the years pick. If they have about hiring the right people, making a good attitude and drive, then we can sure we communicate well, and looking teach them anything, but it must be the after our team.” right fit. We invest a lot of time tailoring In addition to the team-building their training on a case-by-case basis aspects of staff welfare, Neil, Laird, and – so it’s good to be patient and deliberate their staff place an emphasis on finding about the selection process.” 17

That deliberate approach also extends to Kennedy Construction’s choice of trade supply partner, and for the past five years they’ve relied on Trade Manager Mike de Veer, Trade Account Manager Ross Hamilton, and the team at Mitre 10 MEGA Nelson. For Neil and his team, going in-store to pick up supplies is like “going in to see a bunch of friends in the morning. “Any issues are dealt with immediately, and they’re always happy to assist with delivering to our sites outside of the Nelson region,” says Neil. “To be a good supplier, you need to understand what we do. In this industry, there are always ups and downs, and you hit strife sometimes where finances can get a little tight. “Having a trade supply partner that will listen, take it on board, and stand by your business through the good and the bad speaks volumes about the trust you have in them and them in you.” M I T R E 10

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NEVER TRUE

ALWAYS TRUE

Your workmate won’t mind you using his tools every day.

Pink® Batts® has the right product for your building project. We are committed to bringing out new products, and product innovations to help builders get the job done properly. With Pink® Batts® thermal insulation for walls, ceilings and floors in a range of sizes, thicknesses and R-values, along with Pink® Batts® Silencer® wall and mid-floor acoustic insulation, plus the Sisalation® range of building paper, foils and synthetic building wraps, we have the perfect product for your building project. Always.


INDUSTRY ADVICE

In some cases, the contractor may be prepared to take on the additional risk, but will do so at a premium or for additional payment. INDUSTRY CONCERNS Novated contracts have been around for a while, but their use is now increasing. We’re hearing from our members and larger construction firms that their bigger concern is the growing trend of clients attempting to push all the project risk onto their contractor. Novated contracts are simply a method for them to do this, and there has been a noticeable move away from standard contracts to ones with more special conditions which shift the risk onto the contractor. This level of risk is seen as unreasonable by the industry compared to a fairer situation where the client, consultants, and designers each take their share of the risk. The industry is pushing for better allocation of risk so that all parties accept their fair share.

Registered Master Builders Chief Executive Dave Kelly explains novated contracts and the industry’s concerns.

DANGERS OF THIS TREND Too much risk can threaten any company, and it is damaging to the industry to lose any of the bigger players, especially at a time when there is so much construction activity happening. Clients may think they have no risk exposure if they transfer all the risk responsibility to their chosen contractor but, if the contractor goes under, there is a real problem for the client. The replacement contractor is unlikely to accept the same level of risk as the previous one, or they could expect additional payment. Smart clients will recognise that transferring all the risk onto one party is not the wisest choice.

NOVATED CONTRACTS A novated contract typically occurs when a client selects a preferred contractor, and then partway through the design process, the client transfers the responsibility of the design to the contractor – effectively establishing a new contract with the contractor to complete the design.

ADVICE FOR CONSTRUCTION COMPANIES Construction companies need to be aware of the full scope of the risk involved and to cover that risk in their tender submissions. Go in with eyes wide open, and get good legal advice. Make sure you understand exactly what the risk is, and price accordingly.

NOVATED CONTRACTS: WHAT’S THE RISK? These contracts sometimes involve the contractor assuming liability for the design up to that point, which can represent a significant unknown risk. They sometimes also require the contractor to nominate a price to complete the design and build – which is difficult to cost if they weren’t involved from the beginning of the design process. 19

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THERE’S MORE TO CONSTRUCTION THAN JUST AUCKLAND Gareth Kiernan, Chief Forecaster at Infometrics, assesses construction activity data from around New Zealand.

RESIDENTIAL CONSTRUCTION IN Auckland accounted for almost a quarter of all nationwide building activity GARETH KIERNAN CHIEF FORECASTER during 2017, with INFOMETRICS Auckland’s nonresidential construction taking that share up to 38%. So it’s little surprise that the region’s prospects dominate industry commentary. Our graph on page 21 shows that for the June 2017 year, total construction activity in Auckland sat 43% above its 10-year average. Even with capacity constraints limiting residential activity, further growth of almost 20% is expected by June 2019. A forecast retreat in work from mid-2019 until M I T R E 10

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2022 would still leave Auckland’s activity 8.5% above its 2017 level. Proving there’s life outside Auckland, our graph also includes forecasts of construction activity across New Zealand’s other regions as a proportion of work over the last decade. In the Bay of Plenty region, Auckland’s “halo effect” has boosted the housing market to activity levels we believe are unsustainably high. Non-residential construction in the Bay of Plenty, backed by both private- and public-sector funding, is also currently at elevated levels, and is forecast to ease from 2018/19. Housing in Waikato has faced similar drivers as in the Bay of Plenty, but activity appears to be at a more sustainable level. Higher costs for staff and land in Auckland are likely to continue business relocations into 20

the Waikato region, particularly as infrastructure improvements associated with the final stages of the Waikato Expressway are completed. We see plenty of room for growth in privatesector non-residential construction work. Wellington faces growth in construction activity across all building types over the next two to three years. The region’s housing shortage will underpin increases in residential activity, while seismic strengthening and the replacement of buildings damaged in the November 2016 Kaikōura earthquake will boost non-residential construction. In contrast, activity in Canterbury will ease as rebuilding work in Christchurch continues to tail off. Residential activity peaked in early 2015, private nonresidential work in mid-2016, and publicsector non-residential construction in


BY THE NUMBERS

early 2017. Residential building in Canterbury has the furthest to fall over the next five years, but privately backed non-residential work will hold up relatively well as new buildings are gradually constructed to meet market demand. The outlook for Otago resembles the Bay of Plenty. Queenstown-Lakes is currently enjoying a building boom due to the strong tourism sector and rapid population growth. However, the area’s housing market is showing early signs of a slowdown, and building activity is expected to ease from later this year. Construction of a new hospital in Dunedin could temporarily arrest Otago’s decline during 2019/20. Outside these main regions, there is more scope for growth in construction activity to last until 2020. Improved dairy prices and high commodity prices for most other exports will flow through into increased economic activity and construction work in the provincial areas that have previously lagged the main centres. This growth doesn’t imply a boom of the same magnitude as Auckland or Waikato, for example, but will be welcome relief for areas that previously have been subdued, such as Hawke’s Bay or Southland. To find out more visit infometrics.co.nz

PROFILING BUILDING ACTIVITY BY REGION Construction activity as a % of 2008-17 average levels (June years) 180% 160% 140% 120% 100% 80% Auckland June 2017

Waikato June 2018

Bay of Plenty June 2019

Wellington June 2020 21

Rest of NI

Canterbury

June 2021

Otago

Rest of SI

June 2022 M I T R E 10

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BUILDING WITH STRUCTURAL INSULATED PANEL (SIP) SYSTEMS We asked Dan Weir from Black House Properties in Dunedin to share his experience of using SIP systems on house builds.

WITH INCREASED DEMAND for healthy homes, Structural Insulated Panel (SIP) products and systems are being used more and more. In my experience, resistance to SIP systems is usually cost-related, but for many this is now being outweighed by the longterm value associated with the system M I T R E 10

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– the most profound benefits being the strength and insulation values they deliver. FIRST IMPRESSIONS The first time I worked with the SIP system, it’s fair to say I was a little nervous. The 220-odd page installation manual took a bit of time to get through, 22

and there were many phone calls to the supplier for clarification. However, once the install was underway, we soon realised the system was quite straightforward. TECHNICAL DETAILS Each panel is factory-made from


INDUSTRY PERSPECTIVES NZSIP DISCUSS THE ADVANTAGES OF SIPS VS TIMBER FRAMING AND CONVENTIONAL FIBREGLASS INSULATION High-performing, energyefficient houses can be constructed using a variety of products and construction methods. However, SIPs have several distinct advantages: Faster build time

NZSIP estimate that SIP systems are up to 55% faster when building an energy-efficient home, as there are no special tools required. Less onsite bracing is needed during construction, and the panels are pre-fabricated off site in a qualitycontrolled factory.

Less waste

There is no cutting or off-cuts, as the home design goes through a panel design stage to ensure the panels are sized for the build and are simply erected on site.

Structural shell means better strength

plans and are usually sized 1.2 metres wide. Panels come with electrical and plumbing chases drilled out, and are typically spaced at 400 centres. They have rebates for top and bottom plates and joining splines/timbers. Panels are at least a two-man lift, and the average-sized home can have around 100 separate panels, all labelled, with a plan attached for ease of installation. Joining the panels can be done in several ways, but usually via some type of spline which is glued and screwed in place. Expanding foam is used to fill in the space between the panels and timbers to ensure airtightness and insulation values are achieved. ADVICE FOR FIRST-TIMERS Take your time setting out and installing the panels. Once installed, there’s no going back, so be gentle and take your time to ensure optimal insulation and airtightness.

The panels slot together with ease when installed correctly. Start in a corner and make sure you get those first panels 100% perfect. The wall and roof system fixing details are generally the same, and care needs to be taken to ensure the correct hold downs are in place. Note: It’s vital to appreciate that this creates the strength for the overall structure. For builders new to SIP systems, in my opinion, it’s only fair for both client and builder to estimate the labour but charge hourly. This avoids the difficulty of quoting the hours required for a system you’ve never worked with before. Find a good architect who has worked with the system before (or is energetic about the products), and it should be relatively easy to estimate before overcommitting to a specific product or design for the project.

There is essentially double the bracing due to the use of OSB (oriented strand board) or plyboard sheets, so they will be up to five times stronger.

High insulation values

Higher initial insulation values and no “sag” with batts over time (which typically creates a corresponding drop in performance).

Value for money

SIP panels offer better insulation performance, airtightness, and reduced thermal bridges, which are equivalent to 140mm stickframing with R3.6 batts.

Airtightness

With SIPs you have fewer joins, and the OSB is also an airtight product.

More space

Roof SIPs enable home owners to use the open roof space to live in as a second floor. Healthier and safer SIPs are often fire-rated and waterresistant, but also mould- and insect-proof.

For more information visit nzsip.co.nz 23

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STORAGE AND STACKING OF GIB® PLASTERBOARD

Check out these recommendations for handling plasterboard from Winstone Wallboards. GIB® PLASTERBOARD IS a finishing product and needs to be handled like one. For the safety of everyone onsite, plasterboard sheets should be stacked horizontally (lying flat as shown in Figure 1 at right) wherever possible, taking the following considerations into account.

300 mm max.

HORIZONTAL STACKING Sheets should be neatly stacked on a clean surface away from moisture to avoid sheet distortion or damage. ■■ Sheets stacked flat on a concrete floor must be separated from the floor surface by a moisture barrier (e.g. polythene sheet) or placed on bearers (minimum 75mm x 50mm). ■■ Consider floor loadings as GIB® plasterboard weighs in the range of 700-800kg/m3. ■■ Stacks should be limited to 300mm high on suspended floors to minimise the risk of structural damage through point loading.

Timber framing

VERTICAL STACKING If your site conditions are tight for space, then it may not be possible to horizontally stack plasterboard. As a last option, it can be stored vertically M I T R E 10

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Vertical support/restraint

150 mm - 180 mm 24


TECH GUIDE

(on the long edge as shown in Figure 2 at left), taking the following considerations into account: ■■ To keep everyone safe and to prevent sheets from accidentally falling, vertical supports/restraints should always be used when stacking plasterboard on the long edge. ■■ The maximum number of 10mm and 13mm sheets that can be vertically stacked against timber framing is 20. This reduces to a maximum of 13 sheets for 16mm and 19mm GIB Fyreline®.

■■

■■

To reduce the risk of toppling, the first sheet must be placed 150-180mm from the bottom plate. Winstone Wallboards does not recommend stacking sheets vertically on the short edge.

For more information around the storage and stacking of GIB®plasterboard, see page 29 of the GIB® Site Guide downloadable from gib.co.nz, or call the GIB® Helpline on 0800 100 442.

Note: if you’re planning to use a different plasterboard stacking method to the ones recommended above, Winstone Wallboards advises that you are doing so at your own risk, and recommends that an appropriate risk assessment is carried out. 25

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The market leading high modulus adhesive system for overlay timber floors • Low odour & Low VOC • Bonds timber direct to concrete, plywood and particle board • Foaming adhesive for strip flooring. Low foaming adhesive for parquetry and prefinished flooring • Strong high modulus bond resists rafting and cupping • VBS vapour barrier moisture protection for concrete slabs

selleys.co.nz/trade


SITE SAFE

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MYTHBUSTING: LOW-LEVEL SCAFFOLDS

Increase your competency and get on the level about this common scaffolding misconception. MYTH I don’t need any training to set up a low-level scaffold, do I? ANSWER Everyone involved in the scaffolding process must have the knowledge and skills to perform the work safely, regardless of the height of the scaffold. You’ll also need the right certification, depending on the situation. To set up a scaffold under five metres, you must be what is called a “competent person”. Being competent

means you have the knowledge and skills to carry out a particular task. This experience could be gained through training, qualification, experience, or a combination of these. Anyone involved in setting up, dismantling or changing any scaffold should have: ■■ The ability to make simple calculations (for example, working out a load). ■■ The ability to read and understand suppliers’ information, general site plans, design drawings, and 27

specifications for scaffolds. Thorough knowledge of the scaffolding equipment being used. Thorough knowledge of the assembly methods and design requirements associated with scaffolding equipment. Ability to identify the common hazards of scaffolding work and take effective precautions to control the risks resulting from the hazards. Competency to visually inspect scaffolding equipment for faults. The physical skills needed for scaffolding construction. Competency in manual lifting techniques. The ability to work safely and confidently at heights. The ability to use scaffolding tools and equipment correctly. The ability to erect and dismantle scaffolding in the correct sequence. Knowledge of the prevention of falling objects.

SCAFFOLDS ABOVE FIVE METRES For putting up scaffold above five metres, you’ll need the appropriate class of Certificate of Competence for the type of scaffold you’re working on. Certificates of Competence are issued by SARNZ (Scaffolding, Access, and Rigging Association of New Zealand) and are valid for four years. Be aware that the five metres is measured from highest part of the scaffold to the ground. The highest part of the scaffold is the uppermost functional component (usually the top guardrail) and does not include any redundant tube above this point.

Site Safe is a not-for-profit, membership-based organisation that promotes, inspires and supports a culture of health and safety in New Zealand construction. For more free advice and guides, go to sitesafe.org.nz M I T R E 10

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BCITO

training is just as important as tertiary institution-based study. “The sector’s crying out for more trainees, with 56,000 new workers needed in construction and related occupations over the next five years,” says Quinn. “We welcome the Government’s commitment to levelling the playing field between industry-based training and university-based study. The extra year of zero fees for apprentices means they’ll be supported to reach a level of post-school education in the same way as a student in a tertiary institution.”

K A R A E N AV I N C E N T.CO M

BENEFIT TO EMPLOYERS Fees free will also benefit employers who take on apprentices, says Quinn, who hopes more employers will be encouraged to invest their time, skills, and energy into training the next generation. “The Fees Free initiative should have a positive effect on industry recruitment by helping to breakdown the intergenerational prejudice about a career in the trades, which we know can actually be very rewarding.”

FEES FREE FOR APPRENTICES

New government fees free initiative looks to address skills shortages. FEES FREE SCHEME A new Government scheme has lowered the financial hurdle for construction apprentices by offering eligible apprentices two years of free training. The fees free scheme will cover an apprentice’s fees for one year of tertiary study or for two years of industry-based training for new apprentices signing up M I T R E 10

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from 1 January 2018. The majority of BCITO’s construction apprenticeships are covered by the initiative. LEVELLING THE PLAYING FIELD Building and Construction Industry Training Organisation (BCITO) Chief Executive Warwick Quinn says the Government is recognising that trades 28

THE NEXT STEP Quinn notes that as the industry continues to become more specialised, there is a growing need to encourage shorter, more focused courses which currently would not be covered by the fees free scheme. “This would be a logical next step for the initiative. For the industry to be able to respond to the current demand, and to reach its KiwiBuild target of 100,000 affordable new homes within 10 years, we are going to need more specialist skills. This will require the industry to make it easier for workers to undertake more targeted training. “We would not like to see potential apprentices steering away from such specialised training just to benefit from free fees. This would further hinder those companies that operate in this space that are desperate for skills.” For more information about BCITO, visit bcito.org.nz


APPRENTICE INFO

and can be relied on. Be punctual, respectful, and eager to learn. It goes without saying to avoid recreational drugs, as they’ll make you a serious liability onsite. Also avoid using your phone unless it’s break time or for work purposes. And if you’re using your phone to keep a photo record of work you’ve completed for your training, then just make sure your boss or supervisor okays it first. STAY MOBILE Holding a current, clean driver’s licence is a key part of completing an apprenticeship. It’s vital for not only getting yourself to and from work every day and picking up supplies, but also for attending night class or block courses at polytech. If you’re having a beer or two after work on a Friday, know your limit and when to get an Uber or a lift from a mate.

APPRENTICE WELFARE ONSITE

Practical tips to start your career off on the right foot. STARTING WORK ON a building site is an exciting and challenging time for an apprentice. For many, this can also be their first taste of the “real world”. To help with the transition, here are a few simple tips that’ll get your new career off to a great start. EAT, SLEEP, AND STAY ACTIVE Long days and early starts can take some getting used to, and the demands of building can take a serious toll on the body and mind. Getting plenty of sleep and exercise and eating well sounds like basic advice, but you’ll notice a massive difference in how you feel at the beginning and end of each day.

LOOK AFTER YOURSELF If you’re tired, stressed, hungry, or dehydrated onsite, then your concentration can wander, affecting the quality of your work and increasing the risk of an accident. Prepare a healthy lunch and bring enough food to last you throughout the day. Keep some water on you and remember to drink it regularly. Take it easy on the caffeine and energy drinks too. They can become addictive and mess with your energy and hydration levels.

BE SAFE Under the Health & Safety at Work Act, both you and your employer have obligations to ensure onsite health and wellness is maintained. This goes for personal interactions at work as well. If you’re on the receiving end of verbal or physical abuse, discrimination, or racist or sexist comments on the job site, or it’s making you uncomfortable, then ask for help. Share your concerns with someone you trust and tell your boss or supervisor how it’s affecting you. Also check out the Employment New Zealand website for detailed information and advice. For more information on ITAB and their apprenticeship programme, visit itab.co.nz or find them on Facebook.

BE PROFESSIONAL Demonstrate to your boss that you’re someone who looks after themselves 29

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We don’t let in just any old builder. It’s not that easy to join NZCB, which is exactly why you should. NZCB has the highest joining standards of any building association in New Zealand. Our members are all trade qualified builders with proven experience on high quality builds. Join us and as well as getting access to member-only tools and training, you’ll have an easy way to show your clients that you’re up there with the best.

TO FIND OUT MORE ABOUT BECOMING A MEMBER, CALL

0800 CERTIFIED ( 0800 237 843 )

OR VISIT OUR WEBSITE

nzcb.nz


NZCB

GREAT APPRENTICE RACE 2018

20TH ANNIVERSARY

NZCB ANNUAL AGM, CONFERENCE, AND EXPO A look ahead at this year’s special NZCB event in Rotorua. BE SURE TO keep 25 and 26 May free for the upcoming NZCB annual national conference. This year, NZCB is celebrating its 20th anniversary, and the conference theme is “20 years of raising standards”. Given that NZCB was started in the Bay of Plenty, it’s apt that the conference is returning to the Bay for the 20th anniversary and will be held at the Energy Events Centre in Rotorua. The Mitre 10 Trade Team will be there again, so come by our stand to say hello. Once again, we’ll be supporting the crowd-pleasing Great Apprentice Race, which is sure to be entertaining. The conference is a great chance to hear latest industry news and catch up with the trade while enjoying Rotorua’s fun activities and beautiful scenery. Over 650 tradespeople are expected to attend the conference and expo. This

year, the Association of Wall and Ceiling Industries will also be joining the event, with AWCI members welcome to attend. There will be 70 trade industryspecific exhibitors and 16 educational workshops at this year’s conference, and up to 12 skills maintenance points available. Conference attendees will also get the chance to attend two fun-filled evening functions held at Te Puia and The Blue Baths.

The Mitre 10-sponsored Great Apprentice Race is back in 2018 as part of NZCB’s Annual Conference and is a must-see for conference attendees. The high-energy afternoon starts with 16 of the country’s finest apprentices completing a four-hour construction challenge, with the brief unveiled just before they commence. The constructed creations will be on display during the afternoon and Conference delegates will be able to vote for the best design. Then later that evening, in conjunction with Happy Hour, the apprentices will use their newly built racing contraptions to complete an indoor circuit while finishing building tasks along the way. It’s sure to provide guaranteed entertainment for all attendees as the competition heats up and things inevitably start to fall apart. Prizes will be awarded for 1st, 2nd, and 3rd place, with Best Design receiving the major prize.

For more information, go to nzcb.co.nz/conference

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TRADES COACH

MARK-UP VS MARGIN: WHY THE CONFUSION?

Trades Coach Andy Burrows discusses the importance in knowing the difference between mark-up and margin. ONE FRUSTRATION I commonly hear from builders is, “Why don’t my job profits come out as high as my forecast?” There are many factors at play between pricing the job and counting the money, but it’s vital to set the right mark-up at the pricing stage to achieve the required margin on the job. Get this

wrong, and you’ll set the job up to fall short of what you need. THE DIFFERENCE BETWEEN MARK-UP AND MARGIN In simplified terms, when pricing a job, you are looking forward, adding a mark-up to your direct costs to arrive at a sales price. After the job is 33

complete and you check the profit and loss report, you are looking backward and focussing on the gross margin to see the actual gross profit percentage from the job. It’s a common misconception that the gross margin on a job is the same as the mark-up percentage. but that’s not how it works in practice. M I T R E 10

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TRADES COACH

EXAMPLE Imagine your business needs to make a 20% gross margin to be profitable. Armed with this figure, you price your next job by adding a mark-up of 20% to your direct job costs to create your sales price:

Direct costs + Mark-up

$50,000 $10,000

Rather than selling the job at $60,000 (based on a 20% mark-up), you need to sell it at $62,500 (a 25% mark-up) in order to achieve a 20% gross margin at the end of the job.

Sales price (revenue) $62,500 - Direct costs $50,000 $12,500

[20% of $50,000]

÷ Sales price (revenue) $60,000

= Sales price (revenue) $60,000

= Gross margin However, when running the figures at the end of the job, you discover that the business only made between 16% and 17% gross margin. Even though the job went as planned, you have fallen short of your target margin by 3-4%:

Run this extra calculation when pricing your work to achieve the profit levels required for your business to succeed. If you want more help, email me at andy@tradescoach.co.nz and I can send you a one-page ready reckoner chart that makes it easy to work out your required margin.

Sales price (revenue) $60,000 - Direct costs $50,000

CALCULATING MARK-UP VS MARGIN

$10,000 ÷ Sales price (revenue) $60,000 = Gross margin

Mark-up % = (profit ÷ direct costs) x 100 Margin % = (profit ÷ sales price) x 100

0.167 [16.7%]

Your 20% target gross margin has become an actual profit margin of 16.7% because the mark-up was too low. WHAT’S THE ANSWER? To achieve the target gross margin in the example above, you need to create a higher mark-up to your direct costs when calculating the sales price. The formula to calculate the required sales price is: Direct costs ÷ (1 – target gross margin expressed as a decimal). In our example, the target gross margin of 20% is now 0.2 when expressed as a decimal (see below):

Direct costs

$50,000

÷ (1 - 0.2)

0.8

= Sales price

$62,500 [makes a 25%

mark-up of $12,500]

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0.2 [20%]

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GIB Standard gives you the optimal balance for NZ conditions. ®

When you’ve been making plasterboard in New Zealand for 90 years, you know what works. That’s why we can confidently claim that GIB® Standard plasterboard achieves the optimal balance between performance and weight for New Zealand’s unique conditions. Giving you complete confidence it’s right for the job. Find out more at gib.co.nz/thestandard


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

mitre10.co.nz/trade

Mitre 10 Trade Quarterly - Autumn 2018  
Mitre 10 Trade Quarterly - Autumn 2018