Mitre 10 In Trade Magazine - September 2014

SEPTEMBER 2014

SUPPLIER FOCUS - See page 4

GROWING TRADE IN THE FAR NORTH VOCATIONAL PATHWAYS TARGETS APPRENTICES SEVEN STRATEGIES TO GAIN PROFIT FIXING BOTTOM PLATES

SEE INSIDE FOR CHANCES TO WIN GREAT PRODUCTS Offers open to account holders only Call 0800 M10 TRADE to find out more All prices and offers in this publication are valid from Monday September 1 – Tuesday September 30 2014 from participating stores.

FOREWORD Quality supply a major focus As the trade side of Mitre 10’s business has continued to grow over the past few years, we’ve continued to broaden our scope to ensure we expand and maintain strong relationships with quality suppliers.

For any company supplying a trade-focused product or service through Mitre 10, we require a high benchmark to be reached. This is so we can continue to provide you – our valued trade customers – with quality materials that continue to meet your trade needs.

We don’t make it a simple process for a manufacturer to supply to us.

We set the bar high, and we make no apologies for doing so.

If those suppliers can meet our requirements, then we know they’re going to continue to supply quality materials to you, and that’s going to have positive benefits for you as a business, and for your customers.

Roofing Industries Ltd is one such business. Fully New Zealandowned and operated, Roofing Industries has grown out of the expertise and vision of two men – Dave Gellatly and Keith Francis – into a nationwide company that continues to innovate and develop quality roofing materials while maintaining high levels of customer service and supply.

Their story is an interesting one (read more starting on page 4) and marks our intention to bring you more stories on our suppliers over future issues.

Andrew Cochrane, General Manager Trade Mitre 10 (New Zealand) Ltd

CONTENTS 2

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PROFILE

Growing trade in the far North Almost two years since opening, Mitre 10 MEGA Whangarei has gone from strength to strength with a strong focus on Trade and the establishment of a team of staff to service the local Trade industry.

SUPPLIER FOCUS

BCITO

Dave Gellatly and Keith Francis have an extensive history in the roofing industry and have grown their roofing business from a modest Auckland-based operation into a company that reaches right around the country.

Building the future With the end of the school year looming, now is the perfect time to make the commitment of taking on apprentices in order to meet demand and curb an imminent shortage of skilled workers.

LEGAL

14

BRANZ

Fixing bottom plates Initially designed as removable fasteners for fixing plant and machinery to concrete walls and floors, concrete screw-type anchors are a popular option for fixing timber bottom plates to concrete foundations in residential and commercial construction

16

THE TRADES COACH

The 5% factor

Personal Property Securities Act Since coming into force, the Personal Property Securities Act 1999 (PPSA) has widely affected the concepts of lending, hiring and other security interests common to the field of construction in New Zealand.

INDUSTRY

Trades Coach Andy Burrows joins our team this month and, in his first column, highlights the importance of labour efficiency in making a construction business more profitable.

Building and Construction Productivity Partnership A tool to help increase the use of Building Information Modelling (BIM) has recently been released by New Zealand’s construction industry. The New Zealand BIM Handbook was launched by the Building and Construction Productivity Partnership at the Auckland Infrastructure and Procurement Forum attended by construction industry leaders

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THE BACK PAGE

Inset: Dave Gellatly of Roofing Industries.

Roofing Industries Ltd

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Cover: The PumpHouse Theatre on Auckland’s North Shore is one recently re-roofed with Roofing Industries Ltd’s True Oak corrugate profile.

Stuff to win, points to earn Don’t miss the back page

Volume 8, Issue 3 September 2014 Mitre 10 In Trade magazine is published 12 times a year in association with Mitre 10.

Managing Editor

Scott Wilson Phone: 021 725 061 Email: editor@M10magazine.co.nz

Contributors

Adrienne Jervis Carolyn Culliney – Meredith Connell BRANZ Andy Burrows – Trades Coach Building Skills Maintenance Building and Construction Productivity Partnership BCITO

Printer

Nicholson Print Solutions

Enquiries

ReFocus Media Ltd P O Box 21081 Flagstaff Hamilton 3256 Email: Info@refocusmedia.co.nz MMS Publishing reserves the right to accept or reject all editorial or advertising material. No part of In Trade magazine may be published without the express permission of the publisher. All rights reserved. Opinions expressed in In Trade magazine are not necessarily those of Mitre 10 or the publisher. No responsibility is accepted for the suggestions of the contributors or conclusions that may be drawn from them. Although the publisher has made every effort to ensure accuracy, the reader remains responsible for the correct use and selection of any tools, materials and systems followed, as well as the following of any laws or codes that may apply.

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PROFILE

Trade team leads Whangarei growth

Almost two years since opening, Mitre 10 MEGA Whangarei goes from strength to strength ‘with a strong focus on Trade and the establishment of a team of staff to service the local Trade industry. The Store is proudly led by local man, General Manager, Darryn Hansen, who has a strong background in accountancy, retail and management, including four years with Mitre 10.

“While I had long coveted the General Manager role, it is a humbling experience to now be leading such a great group of people” says Darryn.

That team of great people include some key staff within the Trade team: 2

Warrick Thirkell – their new Trade Manager is also a local, with a strong allegiance to the area.

Darryn Hansen Warrick brings a strong sales and business to business background to the Trade team. A strategist with astute business acumen, Warrick is determined to build the Trade component of the store to a heightened level “Building trade business-to-business is something I really want to do. I’m very excited about it.”

“Building relationships with customers and providing the right product at the right price is key. Part of our strategy is to continue to strengthen our team. The team is a relatively new one and that’s a good base line for me. It’s all about trade support and doing things properly. We now have a great team with the background, experience and attitude to grow the trade business.”

PROFILE Paul Errington of Hire a Hubby has a longstanding relationship with Mitre 10 and his loyalty dates back to the old store days, and the relationship has developed good referrals for both parties. Early on it was the locally-owned concept that was a big attraction but Paul has enjoyed the change to the Mitre 10 MEGA format and feels that the relationship hasn’t suffered for the move to a bigger environment. “If anything it has strengthened.”

Paul Andrew, Fraser Haldane and Warrick Thirkell.

Paul Andrew, Trade Supervisor, a qualified Licensed Building Practitioner and Northtec graduate in Carpentry. Being a builder himself, Paul can empathise with his trade customers. “I know what they’re going through, and how to support them”.

Paul loves working within the Mitre 10 culture. He’s friendly and outgoing with excellent people skills. “Being a builder in a supervisory role means there is a new challenge every day, I love the input of the team members.” Paul is additionally impressed with The Mitre 10 Trade Hub website and the time the builders can save when pricing up work.

Fraser Haldane – Inventory Manager is also a former Mitre 10 Trade customer, who became a familiar face in the trade store last year when he was building his home through the store.

He was in and out of the store regularly and got to know the Trade team well. It was the pricing that initially influenced his choice of building supplier. “Mitre 10’s offer was a good one,” says Fraser, who subsequently discovered that the sharp pricing was matched by excellent service. Now Fraser is applying his extensive knowledge and experience to his new role within the Trade team.

Another key member of the team is Erica Longstaff (Trade Support) , who has the job of working across the Trade team and managing the administrative side of the trade business at the store.

Erica Longstaff

Steve Henry is a builder who became a store customer after moving to Whangarei six years ago. Steve specialises in repair and renovation work and has been in the building industry for 35 years. He chose Mitre 10 as the staff are knowledgeable, the pricing is very keen and the service superb. “They look after me well,” he says.

While recently working in Christchurch Paul found his experience at Mitre 10 MEGA Hornby to be very consistent with that of the Whangarei store. This meant a lot to him as he loved the concept of a New Zealand owned and operated business working with him. Paul’s preferred option is Mitre 10 MEGA. He appreciates the customer service levels, benefits from earning Fly Buys points and loves the loyalty aspect.

“The staff are exceptional and I know that if I ask a question about a product there is generally someone close by with the information I need. Most important, I don’t feel like a number. I’m treated with loyalty and respect, not pushed certain products, and there no pressure to buy.

All in all it’s a good working business relationship.”

Greg Ellis Construction; primarily involved in preparing and putting in concrete floors for a major house company find the hours of operation of the store work very well for them and they apprciate the service they get in Store. As we have improved our service Greg has rewarded us with increased business and is currently looking at adding a few complete builds into the mix of work.

Ben Padden Builders, another Trade customer who is a regular in the store and really appreciated the attention and service he gets in store. There is a reciprocal arrangement whereby one of the sheds that Ben builds is diplayed on site. The sheds are sold direct to customers, with the products being purchased through the Store.

Blue Water Trustees The store has also been working closely with John Callaghan of Blue Water Trustees since early this year on the building project being carried out on the waterfront at Ngunguru on the beautiful Tutukaka Coast. John is project managing the build and chose Mitre 10 MEGA because of past experiences and likes the way the store operates.

At our stage of business development this build is a bit more complex, however through a solid and honest partnership with John the Mitre 10 team is continuing to work through it. With a projected completed value of $1.1 mill this will be a stunning property, and Darryn says it’s a real pleasure to be involved.

3

SUPPLIER FOCUS

Careers pave way to Pumphouse 26.jpg manufacturing success Dave Gellatly recognises the vital role that strong relationships play in the building and construction industry.

“Money was pretty easy to borrow in those days,” he says.

“We went to see our bank manager so we could buy a folding machine, and came out with enough money to buy a rollformer as well, and that was the start of it really.”

As the Group Managing Director for Roofing Industries Ltd, he’s seen the business he started with friend Keith Francis grow from a modest Auckland-based operation into a company that reaches right around the country…and he puts it all down to the relationships the pair have formed throughout their professional careers.

That company was sold in 1994 and, after a six year absence, the pair started Roofing Industries Ltd.

“It’s all been about relationships really,” he says. “We never set out to become a nationwide business; it just happened along the way.”

Both Dave and Keith have had a long involvement in the roofing industry, having been previously involved in owning and running roofing contracting companies in the past but, when the two friends joined forces in 1984, they went into business for themselves, manufacturing flashings. But that was just the start of what was to come.

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“Many of our old staff and customers came back and the business grew pretty rapidly from then on.”

“Most of the key people came about through my contacts and previous business relationships,” Dave says. “I don’t recall ever having advertised for a senior position within our company.

“We’ve been really fortunate to have quality people wanting to join our company, and that’s been great for us as a business.”

The company also has a strong family feel, with Dave’s sons Scott Gellatly (Auckland Customer Services Manager) and Graeme Gellatly (IT Manager) both joining their father in the business, along with a great team of staff that Dave is proud to call “highly valued”.

SUPPLIER FOCUS

Dave and Scott Gellatly

Roofing Industries purpose-built Auckland factory

Forming partnerships

Driven by innovation

To cope with the growth the company was experiencing, and to make the most of the potential of the business throughout the country, Dave and Keith formed joint venture partnerships, which gave the company an expansive presence and allowed it to service every area of New Zealand with early locations in Whangarei, Hamilton, Taupo and Palmerston North and, more recently, Christchurch, Wellington and Pukekohe, which are run under management.

Roofing Industries continues to innovate and improve its range of roofing, rainwater and flashings products and even built a testing rig, which was then sold to the Metal Roofing Manufacturers’ Association and is now used to provide valuable technical data on roofing and cladding materials from a range of other manufacturers.

“Early on, the joint ventures we had came about because they were people we knew and trusted, and it just seemed like a logical path to take.”

This wide service network has also allowed Roofing Industries to form a strong alliance with Mitre 10.

“Again, a lot of that came about through relationships, but it’s been hard work getting there….and that’s how it should be,” he says. “We’d already had pockets of work we were doing with some of them, but working with them as a preferred supplier means we need to be able to service them nationwide, and now we can do that.”

Dave also says he sees a number of complimentary similarities between the two companies.

“Like Mitre 10, we have a large percentage of owner-operators nationwide and we both deal with both and public and trade,” he says. “We also try to provide unequalled service in advice, products and delivery.”

Even transportation of materials hasn’t been ignored with the company operating the largest privately-owned, dedicated roofing transport fleet in the country.

“We recognise the importance of providing on time, troublefree deliveries and our trucks provide the opportunity for us to do this…and we’re capable of carting almost any roof sheet length.”

And the products they manufacture are constantly going through development as well, with the latest innovation - True Oak® Corrugate – marking the first major change to traditional corrugated roofing in more than seven decades. The deeper curves of the True Oak® profile give greater strength and better water carrying capacity than the more traditional shallow profiles.

“It’s really a return to the old style of roofing and something we’re expecting to go pretty well,” Dave says.

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Talk to your local Trade Account Manager today.

Contact us on 0800 M10 TRADE or visit mitre10.co.nz/trade for more details.

The Mitre 10 Trade Hub has arrived!

When you’re on the job time matters, and time spent behind the desk rather than on site can soon add up.

That’s why we’ve developed a brand new online hub that can help you do business better on the go.

Wherever you travel, if you are a Mitre 10 Trade Account Holder with our online hub you can access your individual pricing, create an estimate for a job, check your account and catch up on the latest industry news.

What is it?

A mobile and tablet friendly site so whatever device you use you’ll get the right fit. No more annoying zooming or extensive scrolling!

An easier way to estimate. You can add your own customer’s details and manage your estimates for them. You can save even more time by creating templates for common jobs.

A quicker way to get the job done. In just a few clicks you can easily access your personalised pricing and favourite products. We’ve also updated our search function so it’s no hassle to find the things you want.

A record keeper. Your account history, balances and invoices are all available online so you can ditch the paperwork.

Access your account details and set up pin access for your in-store purchases.

Add your customers details and manage your estimates.

View your Mitre 10 account history and balance plus print remittances and invoices.

Joe Bloggs

Receive messages from your Mitre 10 Trade Team.

• • •

Create new estimates

•

Create estimates for your customers: ◆ Add labour ◆ Add sub-trades ◆ Add your margins ◆ Add your business details and logo ◆ Convert to an invoice.

Send feedback to Mitre 10 Trade and find user guides.

Check your account pricing

Quickly find and add items with the new and improved search function.

Create new or add to existing estimates.

View your account pricing.

If you would like a demonstration of the Mitre 10 Trade Hub, please contact your local Mitre 10 Trade Account Manager to arrange this for you.

Favourite your preferred items to easily add to future estimates.

FCB M10 8165

Create templates of preferred materials for similar jobs

WON’T SHRINK CRACK OR PEEL AWAY Waterproof Seal Mould Resistance Resists Lifting 25 Year Guarantee Selleys Wet Area offers the benets of a superior waterproof seal, resistance to unsightly mould growth, and guaranteed performance.

It is the ideal sealant for use in wet areas around the home, such as the bathroom, kitchen and laundry.

www.selleys.co.nz

BCITO

Building a clear path to the future The end of the school year is looming and, in the current environment, builders are feeling much more confident about the future. The construction industry needs more school leavers with appropriate skills to begin apprenticeships at the end of this school year. Now is the perfect time to make the commitment of taking on apprentices in order to meet demand and curb an imminent shortage of skilled workers.

With so many choices available, it can be a challenge for the kids of today to figure out where to go and what to do next when they leave school, let alone planning their journey along the way. A new Government initiative called Vocational Pathways is helping high school students decide what to do after they leave school.

BCITO explains how Vocational Pathways work and discusses how employers can benefit from this initiative when taking new apprentices onboard directly from school.

Developed by the Ministry of Education in collaboration with industry and education, Vocational Pathways were launched in April 2013 as part of the Government’s Youth Guarantee initiative, to better align and prepare students for further study, training or work.

What are Vocational Pathways all about?

Approximately 70% of school leavers do not enter degree level study. There are many learners looking at alternative options and careers via a different pathway. Aimed at learners not intending to continue on to University, Vocational Pathways provide new ways to structure and achieve NCEA Level 2

and enable learners to see how their learning is relevant for a wide range of jobs and study options in five broad sectors of industry.

Why were Vocational Pathways developed?

As part of its Youth Guarantee programme, the Government has set a target that 85% of 18 year olds will have NCEA Level 2 or equivalent in 2017. Growing the number of young people coming through the education system with qualifications will make a positive contribution to growing the future labour market. This means NCEA Level 2 is now regarded as the minimum qualification required to be ready to enter and progress to further study, training or work.

Vocational Pathways make learning relevant to the individual and to the industry they wish to pursue a career in.

How do Vocational Pathways work for learners?

With more than 600 credits at Level 2 now structured and colour-coded within the Vocational Pathways, learners can plan their journey from school to employment knowing what skills, attributes and knowledge they need in order to enter their particular industry of choice.

Learners use an online Profile Builder to plan a Vocational Pathway into a particular industry.

Achieving industry-related credits means that learners are fully informed of what they need to achieve at school to progress to the type of work they are interested in.

How can employers use Vocational Pathways?

Once a learner is studying at NZQA Level 2, they will have access to a Vocational Pathways Profile. This is a visual colourcoded graph that shows the learner’s achievement against each Pathway. Learners can see this information whenever they login to their NZQA record.

NZQA Vocational Pathways Profile example: This profile shows the student has achieved a Vocational Pathway in the Construction and Infrastructure (orange) industries. This student has achieved the required sectorrelated standards and has an understanding of the industry.

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BCITO

This is a much easier way for employers to see a snapshot of industry-related achievements rather than attempting to decipher a long list of unit standards on a Record of Achievement.

The next time you’re talking to a school leaver about an opportunity in your industry, ask to view their Vocational Profile.

You can see what pathways they are interested in and quickly assess their interest and achievement as it relates to your business. If the learner has planned to enter the construction and infrastructure industries, their Pathways Profile will show what knowledge and skills they have achieved so far that are relevant to the industry.

You will be able to see the learner’s strengths, abilities, interests and achievements that are related to construction (in orange) when you look at the Vocational Pathways information.

You can be sure that if someone has achieved a vocational pathway in your sector then the jobseeker will have a strong base of skills and knowledge to help them succeed.

Detailed information for employers about the Vocational Pathways can be found at http://youthguarantee.net.nz/ vocational-pathways/employers-/

WIN AN AEROBATIC WARBIRD EXPERIENCE WITH Sika® PEF Rod

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Backseat passenger: Maybe you.

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Over and out.

On time� not on your time.

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Call 0800 155 010 or visit genesisenergy.co.nz/tradeconnections

AL LTheEG Personal Property Securities Act and construction

– how you can protect yourself

by Carolyn Culliney

An Introduction to the PPSA Since coming into force, the Personal Property Securities Act 1999 (PPSA) has widely affected the concepts of lending, hiring and other security interests common to the field of construction in New Zealand.

A security interest comes into being when there is an agreement between two parties that creates an interest for one of those over some personal property. This could be a lease, a hire-purchase agreement, stock inventory or any similar arrangement that concerns physical goods. Whoever has the interest (i.e. needs the other party to pay them or return the goods) can register that interest on the Personal Property Securities Register so that the whole world knows that they

Carolyn Culliney is an Principal in the Commercial Corporate team at Meredith Connell.

Carolyn’s practice encompasses advice on all forms of commercial contracts. Carolyn has a particular specialization in construction law and has been a guest speaker for the New Zealand Law society on the subject.

Carolyn can be contacted on (09) 336 7500 or by email at carolyn.culliney@meredithconnell.co.nz

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have this interest, as well as how they rank in terms of anyone else that has an interest in the other person’s property (say, a bank or finance company).

The aim of the PPSA was to present a uniform approach to dealing with security interests, as well as to remove any doubt surrounding the way that they will function. In reality, of course, things are never quite that simple, and the legal framework around the Act can be intimidating and difficult to understand for the average New Zealander.

The real area of concern with regards to personal property interests for those in the construction industry would probably be when a party to a construction contract becomes insolvent before the project is finished. In these cases some complicated security interests may come to the surface, and often the result might not be what you assume.

The reason for this is that the rules of the PPSA will, in many situations, override any contracts that were signed, which may come as a shock to the contracting parties. Keep in mind as well that some of these competing interests are likely to be held by large banks, who are certainly not at a loss as to how to protect themselves.

There is still a large amount of confusion around the PPSA and registration concepts, but it really isn’t as complicated as it could be. Considering what one could stand to lose, it’s worth putting in a bit of time to familiarise yourself with the system and process, to make sure that you are properly protecting your construction equipment, stock and machinery.

What is the PPSR? The Personal Property Securities Register (PPSR) exists online so that anyone can look up current security interests. Before entering into an agreement you can search the organisation or person to whom you might be planning to hire equipment or loan materials to, to see if other people have security interests over them, especially broad ones that encompass all of the things in a company or person’s possession.

LEGAL Similarly if you’re planning to buy something second-hand you might want to check who has an interest in the other party (and that item specifically) in case someone else comes to take your goods away.

If you decide to go ahead with a transaction where you are hiring or loaning goods to another party you can register your interest and take your place in the queue of creditors that will need to be paid if that party becomes insolvent. If you do not register your security interest you will essentially be last in line to those who have “perfected” their interest, which in most cases means registering it.

The general rule with the Register is that the earliest registered interest will prevail. However, because this would discourage smaller loans when large, all-encompassing security interests are registered, there is an exception to this rule in the Purchase Money Security Interest (PMSI). This kicks in when any of the following situations occur: • Someone loans someone money for the purchase of a specific object (e.g. a car), and the purchase of this object can be directly traced to the loan.

• When a retailer accepts goods on consignment (e.g. a shipment of chainsaws where the owner only gets paid after they’re all sold, or alternately unsold stock is returned by the retailer).

• A lease of an object for more than one year.

• A sale of an object where the seller would like to retain a security interest until that object has been paid off in full.

With the PMSI, provided that the interest is registered within 10 working days of the property changing hands, the person who registers has first priority over that particular object, no matter what other, broader, security interests are registered already.

How Does the PPSR Affect Me? It’s common in New Zealand to find that a lot of construction projects involve mixed ownership of the different materials and equipment required to complete the project. Some of the situations that are likely to attract the application of the PPSA might be – • A lease of machinery or equipment for longer than one year; • The supply of building materials where they are not paid for immediately; • The purchase of any building materials prior to them being manufactured/delivered; and • Any contractual rights of the principal in the construction contract to take over any unfixed materials.

All of the above are likely to create a security interest, and as such must be registered to effect the best interest of the creditor in the equipment, materials and/or proceeds. There is more on the registration process below.

The first and most common mistake is assuming that having your security interest set out in a contract will be enough to safeguard you if the party that you have loaned/hired equipment to goes into receivership. Clauses that state that an interest will take the form of a PMSI will not be effective unless that PMSI is registered as described above, within 10 working days of the date of the agreement. In fact, most people would register this before even signing the agreement.

Likewise, a clause in a contract transferring the ownership of property in the event of an end to the contract or receivership does not necessarily guarantee this either, as was found out when Mainzeal went into receivership last year. By failing to register a security interest over specific equipment the apartment complex in the case lost out on this despite there being a clause in the construction contract stating that ownership of the equipment would pass to them in the event that the contractor went into liquidation. Instead the hoists went to a bank that had registered a general security agreement over all of the contractor’s present and after acquired property.

How Can I Register?

Registration and searching is all done online at – www.ppsr. govt.nz All you need to do is create a log-in and you can do both then and there, with only small administration fees. You can also use agents that specialise in this field, which can help ensure that your registrations, in particular, are effective.

When searching or registering it’s important to: • Have the correct name. Are you dealing with an individual or an organisation? A registered company is worth looking up on the Companies Office website to make sure that you have the full name (not always what they use when trading), as well as the unique registration number. If it’s a person or another type of organisation do some research and make sure that you have all of the possible name variants to try and look for.

• Have a good description of the goods. The more detail the better. Is there a model number, or any other unique identifiers?

• Remember to register in time. 10 working days for a PMSI is non-negotiable while with other interests you might miss out on priority if someone else registers first.

• If it gets confusing, there are several customer support options on the website, including a free-phone number that is operational during business hours.

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BRANZ

Popular anchor

By Stuart Park, Branz Appraisals Project Manager

CONCRETE SCREW-TYPE ANCHORS ARE INCREASINGLY USED AS A QUICK, SIMPLE AND EFFECTIVE METHOD FOR FIXING BOTTOM PLATES TO CONCRETE SLABS. Initially designed as removable fasteners for fixing plant and machinery to concrete walls and floors, concrete screwtype anchors are a popular option for fixing timber bottom plates to concrete foundations in residential and commercial construction.

Can work well Screw-type concrete anchors offer some advantages: • They are quick and easy to install – a hole is drilled in the concrete floor in the correct location, the timber framing 14

lined up above and the screw-type anchor is installed using either a power driver or manual socket or wrench.

• They can be removed easily if necessary – with no wedge, sleeve or adhesive holding them in place, they simply screw out.

• They put less stress on the concrete – as the screw-type concrete anchors do not have an expanding wedge or sleeve, they apply less expansion force than wedge or sleevetype anchors.

But need to check a few things However, there are some items to consider when using any type of post-installed anchor in concrete foundations: • Does the fastener have the correct capacity strength to meet the requirements of NZS 3604:2011 Timber-framed buildings clauses 7.5.12.3 and 7.5.12.4?

BRANZ • If the fastener is to be used as a holddown at the end of a bracing panel, can it achieve the required characteristic tensile strength for this task?

• Can suitable cover to the fastener be achieved, especially in NZS 3604:2011 exposure zone D and where concrete and concrete masonry header block foundations are used? It may be necessary to specify stainless steel anchors in these locations. Figures 1 and 2 demonstrate how maximum covers can be achieved in two common situations.

• Is the drill bit the correct diameter – if worn, the bolt can be hard to install and may damage the concrete.

NOTE: Two BRANZ Appraisals cover a range of concrete hold-down fasteners, see www.branz. co.nz.

BSM BSM seminars kick off Industry education organisation Building Skills Maintenance (BSM) is running a series of education seminars across the country from September 1 – December 2 aimed at helping you run a safe and successful construction site.

Backed by primary sponsor Mitre 10 Trade, the seminars will cover a range of health and safety topics and will be held at 34 different locations across the country. These topics will include • • • • • •

Planning a safe approach Your workers health and wellbeing Employing Subcontracting Managing resources at differing stages of the build Tools and machinery

• Protecting the public • Emergency management

There will also be a review on Working From Height, which will cover: • What impact has this project had?

• Worksafe figures • Feedback from our industries, and further guidance for safe work at height

For more information, visit the BSM website – www.bsm.org.nz - where you can find a list of the seminars and their locations, as well as register for your local event.

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H C A O C S E D A R T

The 5% Factor

By Andy Burrows

At a recent seminar I conducted on increasing the gross profits in your core operation, one of the main talking points was labour efficiency.

Most agreed with my contention that labour is biggest maker or breaker in project profitability. A 5% swing either way can cause a 50% swing in the net profit of your business, and therefore the amount of money that’s going into your pocket, or to invest in growing the business.

Would you agree with this?

So, if you agree that labour efficiency is really vital to drive overall profitability, what can you do increase this efficiency? I covered 7 strategies that could be used. They are not the only things you can do to improve efficiency in your production, but work on these and you will be making a good start on achieving that enticing 5% gain in gross profit.

Hire right Like any inefficiency in a business, the earlier in the system you can make changes, and therefore avoid or minimize the inefficiency, the more cost effective that will be. With labour, hiring the right type of people first up will help. In these days of high demand and limited supply of perfect labour, that’s not so easy to do. You may need to change the way you normally advertise for team members or be prepared to hire someone a little light in skills and train them up. What is important is to hire based on the right cultural fit. Even if they have all the right skills, if they aren’t a good cultural fit for your business, wait for a better fit to come along, even if you need to up-skill them a bit.

Skills are trainable; attitude isn’t.

Sub-contract to specialists Realise that you can’t be good at everything and be prepared to bring in specialist people to do part of the production that you may have done in the past, but could be done much faster by the specialist. It may cost more in the short term, but the time saved can be spent on other areas of the project that need to be progressed.

Keep team engaged

Andy Burrows Andy Burrows has been a professional business advisor, mentor and coach since 2006. He specialises in working with the owners of construction-related businesses to build systems and profitability into their operations.

Contact Andy on 027 688 6721 or email andy@ tradescoach.co.nz.

Visit his website at www.tradescoach.co.nz

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Unhappy team members cost you money. This can be through: slow production, errors, theft, bad customer experience, absenteeism, high staff turnover, or a combination of the lot. A team that is engaged has some emotional buy-in to the vision and goals of the company and will “go the extra mile” when required. You still need to be there or thereabouts with the money, but it is not the main reason why team members are engaged or dis-engaged. Things like acknowledgement, giving responsibilities, involvement in decisions will all help increase engagement. You just need to find the right formula for your team.

More communication “But I talk to the guys all the time on site” I hear you say. That may be so but the conversations are likely to be about the specific task in hand, or social chitchat. That’s fine but I suggest time should be put aside on a weekly basis to look at the wider picture; where the project is at in terms of budget and time, a 4-week look-ahead (for bigger projects) and a focus on one core value.

H C A O C S E D A R T This tends to help improve team engagement and a feeling of collaboration. I have yet to hear a team member complain they are told too much information, but often the opposite.

Training When I ask new clients about how much training they offer their team members, I sometimes get the response, “Why spend a lot of time and money training them. They will probably leave and become my competitor!” Yes they might, especially the ones with some get up and go in them and who want to achieve some lofty long-term goals. So, what’s worse: train them and they may leave at some time in the future, or don’t train them and they stay? To me having a well trained team member who may leave is a lot better than having an untrained one who stays with you, plods along and doesn’t perform.

Training them in technical skills is the obvious place to start, but don’t forget to put them alongside your most experienced person (might be you) and show them the quick way to do stuff. The little trick of the trade that come from years in the field. Also think about training in some of the “softer” skills, such as how to deal with client inquiries.

Just like better communications increases team engagement, providing relevant training also helps to increase loyalty and appreciation. If you are concerned about the cost of external training, consider sharing the cost with the team member, or including in their contract that they will repay the cost of training if they leave within a year of receiving it.

Incentivise Money is usually not the main motivator for people when they work for someone, but it sure helps. Rather than just paying someone more, why not tie it to increased efficiency? This then becomes a win-win for you both.

Keep it simple however. Incentive schemes can be a minefield of problems and a source of jealousy and bad feelings. Build

rules into the scheme up-front that are clear and accepted by all. Despite being potentially tricky to administer, a simple, wellbalanced bonus scheme can provide a really useful tool in both increasing production and minimising errors. It also sends a clear message that hard work and smart ideas will be rewarded.

Weed out bad apples You simply cannot afford to retain consistently underperforming team members, and even less so anyone who is a complete cultural misfit and is poisoning your wider team.

People should obviously be given an opportunity to improve and grow, but if they fail to grasp these opportunities and remain well below par, they should be let go. If not they will only drag others down to their level.

This is way simpler if you employ contractors, but you should still follow due process and give them some warnings and a chance to improve. You never know, you may need them again in the future and I have learnt that it doesn’t pay to make enemies if you can avoid it.

Letting an under performing employee go requires more care and definitely follow a well-documented process. That may be a series of performance management meetings and training sessions over a couple of months, or if the business needs to change the mix of staff positions, follow a restructuring process.

A restructure may only take a couple of weeks to process and so is a quicker way to reset the company structure and better match the business environment.

There are many more ways to improve production efficiency than these 7 ideas I have suggested above, but they’re a good place to start. If you can implement some ideas from this article into your business, you will be well on the way to a significant increase in your bottom line. Production improvements are the fastest way to increase profits in your business and have that multiplier effect. If you are currently 5% less than average in your efficiency and can improve to be 5% BETTER than average, that’s a 10% improvement and a possible DOUBLING of your net profit! What would that extra money mean to you?

Designed for New Zealand Conditions

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Wrecking Knife Where chisel and knife combine to form the ultimate multi-purpose tool

INDUSTRY

New Zealand BIM Handbook launched A tool to help increase the use of Building Information Modelling (BIM) has recently been released by New Zealand’s construction industry.

The New Zealand BIM Handbook was launched by the Building and Construction Productivity Partnership at the Auckland Infrastructure and Procurement Forum attended by construction industry leaders.

BIM is the digital representation of the complete physical and functional characteristics of a built asset – everything from bridges to buildings. It involves creating a model with real life attributes within a computer and sharing that information to optimise the design, construction and operation of that asset.

The BIM Handbook was commissioned by the Productivity Partnership and produced by the BIM Acceleration Committee, a voluntary industry and government body, with extensive industry input and the support of BRANZ. “We believe BIM is a potential game changer in terms of lifting the performance of New Zealand’s building and construction sector,” said Productivity Partnership Manager Chris Kane.

Overseas experience shows that using BIM on construction projects can result in significant productivity gains*. BIM puts everyone in the project team on the same page – or screen – delivering major benefits through better collaboration and coordination.”

• enable clients to better brief their project team when using BIM • create a common language around BIM to improve industry communication • outline the process that should be followed to efficiently use BIM on a project.

As a result of industry feedback, the BIM Handbook is structured into nine separate documents – a main document and eight appendices – to provide easy access to key information.

“We know that users will want to print out specific sections of the Handbook so we’ve packaged the information to respond to that need,” said Andrew Reding. “For instance, we’ve provided templates for BIM briefing and planning documents and examples for people to follow. We’ll continue to refine and expand the contents of the Handbook, based on people’s experience using it.”

It is intended that the BIM Handbook be used in conjunction with New Zealand Construction Industry Council Design Documentation Guidelines.

See www.buildingvalue.co.nz/BIM-in-NZ

The Handbook follows the normal progression of a project from pre-design through to operation, promoting the ability of BIM to add value over the whole life of a building.

“Greater use of BIM helps reduce construction costs as well as ongoing maintenance costs,” said the Partnership’s Construction Systems Workstream Leader and BIM Acceleration Committee Chair Andrew Reding. “This Handbook is intended to be a hands-on resource to support people to use BIM and capture its benefits. We expect that it will be helpful right across the industry, including clients, architects, designers, quantity surveyors, engineers and construction companies.”

The Handbook aims to: • provide a framework to help decide if/how BIM should be used 19

SIX remarkaBle facTS aBOUT GIB aQUalINe® aNd weT area rOOmS.

PrOveN in over 500,000 wet area rooms

NZ’S mOST Preferred tiling substrate*

fUlly Backed with a minimum 10 year warranty**

Special waTer reSISTaNT polymers help prevent moisture penetration

fIBreGlaSS IN THe cOre and can be used in GIB EzyBrace® Systems#

Can be USed IN GIB® fIre raTed SySTemS##

To find out more, call the GIB® Helpline on 0800 100 442 or visit gib.co.nz/aqualine

*Winstone Wallboards BRANZ Trade Survey December 2013. ** Refer to GIB® Product and System Warranty for full details. # The fibreglass core means it can be used in high performing bracing elements. Bracing elements are required to have a durability of 50 years.

GIB® bracing elements are not to be located in shower cubicles or behind baths because of durability requirements, the likelihood of renovation, and practical issues associated with fixing bracing elements to perimeter framing members. For full information, please refer to the GIB Aqualine® Wet Area Systems and GIB EzyBrace® Systems literature. ## In place of the equivalent thickness GIB Fyreline®.

GIB® is a registered trademark.

J1/WWB0036/BLD

That’s why it’s imperative you use only proven wet area lining products and systems from local manufacturers you know and trust.

Wet areas like bathrooms, laundries and kitchens are more vulnerable as they are exposed to steam and moisture. Extra protection is needed to prevent moisture from being absorbed through to the underlying framing where it can cause real damage.

Answer the following question and you’ll go in the draw to win a cool Mitre 10 Trade dart board (and six darts) for the side of the smoko shed.

WIN A MITRE 10 TRADE

DART BOARD

Email your answer to m10trade@mitre10.co.nz with the words ‘September dart board comp’ in the subject line and you’ll go in the draw to win.

You must include your answer, your name, company name, physical address, daytime phone number and the name of the store you hold an account with.

All entries must be received by 5pm on Wednesday October 1st, 2014.

Conditions of entry: You may enter only once/ Prize(s) are as outlined. Prize(s) are non-

refundable, non-transferrable and not redeemable for cash. The winner(s) will be notified by phone or email. Employees of ReFocus Media Ltd Ltd, Mitre 10 (NZ) Ltd, suppliers of goods to Mitre 10 and their immediate families and agencies are not eligible to enter. By entering this contest, you consent to the use of your name in all matters related to this contest, including any advertising or publicity without further compensation. Results of this promotion will be published in a later issue of Mitre 10 In Trade magazine. Prices that may be quoted in this promotion were accurate recommended retail prices at the time of publication. ReFocus Media Ltd and Mitre 10 (NZ) Ltd accept no responsibility for any loss or damage incurred from the use of these products.

QUESTION: According to BRANZ, how far should a screw anchor be set from the edge of a concrete slab?

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. In Trade Vol 8, Issue 3 September 2014

✃

21

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