BIG PROJECTS IN TE AWAMUTU MITRE 10 AWARD WINNERS AUSSIE TRIP FOR TRADE CUSTOMERS MONOPITCH ROOF BRACING LEGAL: DELAY RISK IN CONSTRUCTION PROJECTS
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 Tuesday 1st September to Wednesday 30th September 2015 from participating stores.
FOREWORD Award winners set high standards Our annual Mitre 10 Expo is always a great chance for our store owners, staff members and Support Centre personnel to get together with a wide range of suppliers and see what’s innovative in the hardware industry. Every time we hold this event, we’re impressed with the standards that are set, both in the range of products that are made available to our stores, and the unique manner in which suppliers choose to promote them. This year was no exception. However, the biggest highlight, as is every year, was the annual Mitre 10 awards, which allow us to recognise the hugely positive impact that has been made on our business by our stores, staff and suppliers. Any business is only as good as those that work in it and on it, and we’re extremely fortunate to have such a strong network of people within the Mitre 10 organisation, as well as proven group of suppliers working with Mitre 10 to provide such a wide range of high quality products and services. Like every year, picking winners from such a great group is difficult, but we’ve highlighted the best of the best in this issue of In Trade, so make sure you check it out on page 4.
Chief Executive Officer Mitre 10 (New Zealand) Ltd
Acting General Manager Trade Mitre 10 (New Zealand) Ltd
The highlight in August for many Mitre 10 Trade customers was being hosted on the annual Mitre 10 Trade Bledisloe Cup trip to Sydney, supported by key Trade suppliers and the national Trade Team.
Cover: An impressive lodge at the Highfield Country Estate Retirement Village is just one of the projects currently on the go for Te Awamutu’s Daniel Kraayvanger
It’s been a busy year for Daniel Kraayvanger and his team at DK Designer Homes and DK Construction with some major projects on the go in Te Awamutu.
Volume 9, Issue 3 September 2015
MITRE 10 AWARD WINNERS
As part of the recent Mitre 10 Expo at the Trusts Arena in Auckland, an annual awards dinner was held, which provided the opportunity for Mitre 10 recognise stores, staff and suppliers for the outstanding contribution they have made to the success of the company over the past 12 months.
Mitre 10 In Trade magazine is published 12 times a year in association with Mitre 10.
The key risk on any construction project is delay and late completion can have dire consequences for both principal contractors and subcontractors. For this reason, significant time is often spent negotiating the allocation of this risk and agreeing the appropriate remedies for the delay.
Bracing for monopitch roofs
More homes were consented in the first six months of 2015 than a year previously, Statistics New Zealand said recently. Between January and June 2015,12,057 new dwellings, worth almost $4 billion, were consented.
Celebrating top apprentices
There is no doubt that the building booms in Auckland and Christchurch have lead to a major shortage of skilled staff and the years of low or no activity bringing in new talent to the industry are coming back to haunt us.
The bracing requirement for monopitch roofs is addressed in NZS 3604:2011 Timber-framed buildings paragraph 10.3.4, but there still seems to be some confusion around the issue. Here, the issue is sorted out by BRANZ.
A big highlight for BCITO recently was the celebration for many of BCITO’s trade sectors and apprentices in a number of industry sectors.
Here are five eye-opening questions we think every business owner should ask their bookkeeper in order to get the most out of their business.
SAFETY – SITE SAFE NZ
It is pretty cold out there at the moment and it pays to stop and think about how we always recognise the discomfit of cold but we rarely consider its effects while we’re at work.
Apprentice Georgie Young looks at the mix of hard work and good fun she has whilst working on a building site…and then thinks back to some of the jokes she’s played on site - with both good and bad consequences.
THE BACK PAGE
Stuff to win, points to earn. Don’t miss the back page.
Scott Wilson Phone: 021 725 061 Email: editor@M10magazine.co.nz
Adrienne Jervis Jordan Ropati – Meredith Connell Statistics NZ BCITO BRANZ Site Safe NZ RightWay Ltd Andy Burrows – Trades Coach Apprentice – Georgie Young
Nicholson Print Solutions
ReFocus Media Ltd P O Box 21081 Flagstaff Hamilton 3256 Email: Info@refocusmedia.co.nz Refocus Media Ltd 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.
Bledisloe Cup trip a success The highlight in August for many Mitre 10 Trade customers was being hosted on the annual Mitre 10 Trade Bledisloe Cup trip to Sydney, supported by key Trade suppliers and the national Trade Team. Although this was our biggest ever group, the tone of the weekend was relaxed and informal, with a great mix of organised activities and plenty of free time for everyone to explore Sydney. Starting off with a welcome function in Darling Harbour, an opportunity to mix and mingle with the rest of the group. On the Friday, a sailing regatta on Sydney Harbour was a highlight for many, while others thoroughly enjoyed the ambrose golf tournament at one of the local golf courses. 2
Match Day included a relaxing cruise to Homebush Bay Wharf with a short bus ride to the stadium, followed by the much anticipated clash of the All Blacks vs the Wallabies. In the end the result was not what we had hoped for, but that was soon drowned out by the lively band on the cruise back in to Darling Harbour! Sunday was low-key for most, a bit of shopping and a bit of recovery, with a final farewell and prizegiving from our suppliers, before setting off to the airport for the flights back to New Zealand. This trip is only possible with the significant support from our suppliers and we would like to thank Ampelite, CHH Woodproducts, Drymix, Firth, Golden Bay Cement, IBS, James Hardie, Mitek, Roofing Industries, Sika, Southern Pine Products, Steel & Rube, Tasman, TCL Hunt and Winstone Wallboards.
PROFILE Major projects underway for DK It’s been a busy year for Daniel Kraayvanger and his team at DK Designer Homes and DK Construction with some major projects on the go in Te Awamutu. They are soon to complete a modern 462sqm birthing unit for the town and are heavily involved at Highfield Country Estate Retirement Village where they are building a large lodge as well as the retirement villas. Work for Te Awamutu Birthing began on March 19 and has been project managed by Eoin Fitzpatrick, with 3-4 full-time builders on site. Offering purpose-designed facilities, the unit features two birthing suites, four post-natal rooms, two ante-natal rooms, an ante-natal classroom, two kitchens, a lounge, waiting area, and a wing for staff or an extra post-natal room. In the heart of the town, the centre shares the same parking area as Mitre 10 MEGA Te Awamutu, the primary building supplier for the company. “It’s been handy for the forklift!” jokes Daniel. Despite a hold-up due to rain and some challenges along the way, the project will be completed on time. The locals welcome its presence.
“It’s been a great build, and is well fire-proofed with several fire cells,” says Daniel. Daniel’s brother Jason Kraayvanger of New Vision Architecture designed the building. The brothers’ complementary skills make them a formidable team in the local building industry. Daniel’s not sure how his mother managed it, but the boys have achieved a good balance of practical, hands-on adeptness and excellent drawing skills. Meanwhile on the 6.5ha Highfield Country Estate Retirement Village the DK team is forging ahead with the eagerly anticipated 1810sqm lodge. The building comprises a host of amenities for village residents and caters for a broad range of activities with everything from a workshop area, heated indoor swimming pool, gym, pool tables, yoga and pilates room, to an arts and crafts room, theatre, formal dining room, main lounge, and more. It will be complemented by an outdoor bowling green. Under project manager Darryl Nield, assisted by Sandra Metcalfe, the job is tracking well. Of the 118 villas that will grace the retirement village, all of them - barring 23 - have been, or are in the process of being built by the company under the management of Tau Haimona and his team. Where possible Daniel uses local subbies and proudly supports the local community, with Mitre 10 MEGA Te Awamutu supplying the majority of the building materials for their projects.
PROFILE Awards winners recognised As part of the recent Mitre 10 EXPO at the Trusts Arena in Auckland, an annual awards dinner was held, which provided the opportunity for Mitre 10 to recognise stores, staff and suppliers for the outstanding contribution they have made to the success of the company over the past 12 months. The award winners from the event have given their thoughts and response to their success. SUPPLIER AWARDS 2015 Drymix Thrilled to be nominated again, the team at Drymix were lost for words to hear that they’d won the Building Products Supplier of the Year award for the second year running. “Being a family owned and operated business, we feel we can relate to the members of the Mitre 10 group, with so many of their stores also being family owned and operated,” said Drymix Marketing Manager, Alex Crossan. “We strive to provide innovative and high quality solutions to all requests, always offer our very best customer service.” The team constantly thinks about how it can assist Mitre 10 to increase their profitability and continue to grow their trade business. “We genuinely love working with the Support Centre and Members. They’ve been incredibly supportive of Drymix for well over 20 years. It’s a pleasure to be in partnership with this legendary New Zealand business. Long may it continue.”
Stanley Black and Decker Honoured to win the innovation award for a second time, Stanley Black and Decker’s small dedicated NZ team draws its wealth of local and international knowledge and insights to build category strategies. “Our partnership with Mitre 10 from the Membership to the Support Centre and the Executive Team continues to build on a proven track record,” says Commercial Manager, Nick Armiger. “Innovation has been the key to the growth we have enjoyed with Mitre 10, and will continue to drive both businesses going forward.” Stanley Black and Decker appreciates the continued support provided by the Mitre 10 Stores and Support Centre with the new DEWALT hand tool range. “We will continue to introduce opportunities to our key partnerships.”
PROFILE STORE AWARDS 2015 Mitre 10 Young Retailer of the Year - Gavin Scott-Petersen Recognised as an outstanding retailer who has shown initiative and enterprise in leading the retailing team at Mitre 10 MEGA Te Awamutu, Gavin Scott-Petersen is a great asset to the team. Store owner Daniel Fitzgerald applauded Gavin for his fantastic work in helping to build the store’s retail and trade business. “He puts in a huge effort, both in and out of work hours.” A humbled Gavin said there are many other people throughout the Mitre 10 Group who were more than deserving of the award. “It is a tremendous honour to be acknowledged in this way and hard to believe it has actually happened.” He thanked the Mitre 10 MEGA Te Awamutu family for their continued support and commitment to him and the business. “Nothing I have done or achieved would have been possible without the support of Daniel and Nikki Fitzgerald, the Mitre 10 MEGA Te Awamutu team and others around me.”
Mitre 10 Members Choice Award - Kevin Rae, Regional Trade Development Manager Kevin Rae excelled in a field of 19 nominees to take out the well-earned Members’ Choice Award. But the Regional Trade Development Manager South Island, who says he was just doing his job and all the things he’s supposed to do, hadn’t prepared a speech as he wasn’t expecting the win. The award recognised Kevin’s high standards of professionalism, proven record in management and exceptional level of service. He’s been in the role for three and a half years, coming from project management for Mitre 10 in Christchurch following the earthquake devastation.
“It is a tremendous honour to be acknowledged in this way.” - Gavin Scott-Petersen Mitre 10 Trade Store of the Year – Waihi
Mitre 10 MEGA Trade Store of the Year - Ferrymead
Named 2015 Mitre 10 Trade Store of the Year, Mitre 10 Waihi Trade Manager Warren Hurley attributes the win to a big team effort. Both the trade and retail staff played an integral role in the store’s success. “No matter what their role, whether forklift driver or counter staff, everyone really stepped up and pulled together,” said Warren. The store’s new sales team has bonded well, the building industry is on a natural incline and Mitre 10’s production plant across the road is humming. Warren has been in the Trade Manager role for 8 months, taking over from veteran employee Graham Walker. The retail team is managed by Brian Jones.
A consistently strong contender in the Mitre 10 Awards, Mitre 10 MEGA Ferrymead has been a previous winner and finalist. To take the supreme prize again this year is a big bonus, says Trade Manager, John Barltrop. “We’ve got four dedicated sales reps, a good rep support and quotes team, and great trade-orientated crew. From the cleaners and despatch team right through to the check-outs and counter staff, everyone is happy to look out for our builders.” Along with their overall dedication, the whole team was gelling well. Regional Trade Development Manager Kevin Rae said the Ferrymead store was a worthy recipient, and member/owner is extremely proud of his team’s capability.
Managing delay risk and securing time-related costs in construction projects By Jordan Ropati
Delay risk in construction projects The key risk on any construction project is delay. Late completion can have dire consequences for both parties. For a principal, it can mean paying additional consultancy fees, additional rent for temporary accommodation and compensation to third parties. For a contractor, late completion can result in incurring additional on-site project costs, material and labour price escalation costs and opportunity costs including loss of profit for missing out on other projects. For this reason, significant time is often spent negotiating the allocation of this risk and agreeing the appropriate remedies for the delay. In terms of risk, parties often haggle over who takes the risk for delay due to poor weather and unforeseen ground conditions. In terms of remedies, the principal will focus on liquidated damages as the main tool to cover its losses for the late completion, while the contractor will seek to avoid such penalties through extension of time rights and also looks to cover its additional time related costs. However, the reality is that no matter how comprehensive a construction contract is in terms of the allocation of delay risk and the associated remedies, neither parties’ rights are secured unless they are aware of the contractual procedure for enforcing those rights, and they follow that procedure. All too often contractors adopt the ‘she’ll be right’ attitude with regards to the ‘paper work’ requirements for such claims under a contract, believing that it can all be dealt with at the end. This approach is dangerous and can compromise a contractor’s ability to enforce their contractual remedies, leaving them exposed to substantial costs and claims for liquidated damages. Below, we provide a few tips for contractors to ensure their rights are secured and their exposure for construction delays is limited.
Knowing the contractual dates When it comes to delay risk, the key term of any construction contract is the due date for completion. This is the date on 6
which any claim for liquidated damages or extension of time will be based. Accordingly, knowing this date at the outset is essential. While this may seem fairly basic, parties occasionally get this wrong, often as a result of not reading the final version of the contract and believing that the dates in an earlier programme (i.e. the tender programme) apply. This mistake can be fatal for an extension of time claim, meaning the contractor has to cover the associated time related costs as well as any liquidated damages resulting from a late completion. Therefore, before signing, ensure you know the due date for completion.
Complying with the contractual requirements for extension of time claims It is common for standard form construction contracts to specify time limits for making extension of time claims. The purpose of this is to allow the relevant decision maker under the contract ample opportunity to investigate the claim and make a determination. In addition to time limits, construction contracts commonly require the contractor to provide information in the claim, such as the contractual basis for the claim, the factual circumstances supporting the claim and the extension of time and the associated cost sought. As with time periods, such requirements are included to assist the decision maker in conducting a proper investigation and reaching a valid determination. Despite the risks, it is relatively common for contractors to ignore the stated contractual requirements and either leave all of their claims until the end of the project or ‘coat-peg’ certain events for later extension of time claims. Unless the contract provides otherwise, these practices should be avoided as both risk the rejection of an otherwise valid extension of time claim and incurrence of unnecessary costs, especially where it impedes the ability of the decision maker to conduct a proper investigation into the claim.
LEGAL Ensuring decisions are made in a timely manner It is usual for construction contracts to also contain time restraints on the decision maker making a determination of such claim. The purpose of which is to maintain contractual certainty and avoid time going ‘at large’. However, it is important to be aware that failure of the decision maker to issue a decision on a claim within the contractual time period does not necessarily mean that the claim is approved. This is because contracts often require the decision maker to expressly grant the extension of time claim in writing for it to be valid. This means, in the absence of an express contractual clause to the contrary, a contractor should not assume that their claim is deemed approved. In fact, it is relatively common for the decision maker to defer determinations until the end of the project to allow them to see whether the event in question actually caused a delay. While such an approach may assist the decision maker, it is beneficial to neither party. For the principal, it risks time going ‘at large’ and rendering the liquidated damages provision inoperative. For the contractor, it means claims are judged by harsher criteria than that permitted under the contract.
A prudent contractor should therefore insist on a timely decision being made by the decision maker. Should the decision maker refuse, the contractor may be able to raise a dispute under the contract to have the matter resolved. Of course, an even better option is to negotiate a clause at the outset that expressly provides in the event the decision maker fails to make a determination within the required time period, the contractor’s claim is deemed approved.
Jordan Ropati Jordan is a solicitor in Meredith Connell’s Infrastructure & Projects Group. He regularly advises clients on a range of issues arising out of construction and other infrastructure projects.
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Bracing for monopitch roofs By Alide Elkink, Freelance Technical Writer, Wellington Judging by the number of calls to the branz helpline, there’s some confusion around bracing requirements for monopitch roofs. Here, we sort out the issue. THE BRACING REQUIREMENT for monopitch roofs is addressed in NZS 3604:2011 Timber-framed buildings paragraph 10.3.4. Simply stated, it requires that bracing for monopitch roofs must comply with paragraphs 10.3.2 (for light roofs) or 10.3.3 (for heavy roofs), but it also includes an exemption.
Raked wall frames Paragraph 10.3.4 does not require roof plane diagonal bracing if: • the wall frames extend and are braced up to the underside of the rafters, and
• the ceiling lining is attached directly to the underside of the rafters. This will only apply where the wall frames are raked (see Figure 1).
Level top plates and trusses Where the wall frames have level top plates and the roof framing consists of trusses or a strutted roof, either roof plane or roof space bracing is required in accordance with paragraphs 10.3.2 and 10.3.3 for light and heavy roofs (see Figure 2). In this case, the highest end of the trusses is considered the ridge line and requires at least two braces over its length. Figure 2 shows both roof plane bracing and roof space bracing as alternatives.
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Over 12,000 new homes consented in first half of 2015
More homes were consented in the first six months of 2015 than a year previously, Statistics New Zealand said recently.
This was made up of: • 1502 houses • 70 apartments • 159 retirement village units • 311 townhouses, flats and units “New dwelling consents growth this month (June) was led by Auckland, which offset the fall in Canterbury,” Ms Eatherley said.
Building Consents Issued: June 2015
Between January and June 2015, 12,057 new dwellings, worth almost $4 billion, were consented.
Embargoed until 10:45am – 30 July 2015 “The new building consent figures show the total floor area for the dwellings consented was 221 hectares,” business indicators manager Clara Eatherley said. “This means that enough new homes were consented in the first half of 2015 to cover an area twice the size of Wellington Airport.”
Auckland’s figures were up, climbing by 105 to 704, an increase of 18 percent, but Canterbury’s numbers dropped by 13 percent, down 79 to 544.
In June 2015, building consents were issued for 2,042 new dwellings, comprising:
In the month of June 2015, 2,042 new dwellings were consented nationally, up 2.0 percent on June the previous year. However, in seasonally 1,502 housesadjusted terms, the number was down4.1 percent from May 2015. New dwellings consented in 70 apartments June 2015, compared with June 2014 showed that there was a 159 retirement village units 2.0 percent increase nationally (up 40 to 2,042).
The total value of consents for all buildings in June 2015 was $1.3 billion, comprising $832 million for residential buildings and $454 million for non-residential buildings.
311 townhouses, flats, and units.
The seasonally adjusted number of new dwellings consented fell 4.1 percent in June. The trend is increasing very slightly, following steady growth between May 2011 and June 2014.
11 The actual value of building work consented in June 2015 was $1.3 billion. For June 2015 compared
Left to right: Paul Williams, Ben Meister, Ruma Karaitiana (Chief Executive BCITO), Stafford Moody, Nathan Weston, Richard Blomfield.
Left to right: Anthony Bergman (Most Promising Glass & Glazing Apprentice 2015) with Greg Durkin, (Group Manager Stakeholder Engagement BCITO), Stewart Knowles (Executive Director, WANZ/GANZ)
Celebrating NZ’s top apprentices Winter may bring chilly and wet weather, but a big highlight for BCITO is that it’s also a season of celebration for many of BCITO’s trade sectors and apprentices. BCITO staff have recently rubbed shoulders with the best of the best in many industry sectors. A huge congratulations and well-done to these high achievers. NZ Painting & Decorating Apprentice of the Year Awards - held in conjunction with the Master Painters New Zealand conference in Wellington in June, regional award winners were: • Northern - Mailefihi Pasakala, J R Webb, Auckland • Central - Hona Spratt, Braddock Decorators, Wellington • Southern - Imche Cole, Brown & Syme Holdings, Christchurch The top performer and overall winner of the title ‘NZ Painting & Decorating Apprentice of the Year’ was awarded to Hona Spratt. Hona says, “My painting apprenticeship has changed my life so much for the better. I’m passionate about what I do and see a great future in this business for me.” Hona has worked his way up through the ranks at Braddock 12
Decorators. He began his career during the school holidays working for pocket money. Now he’s a project manager with the company, is in charge of 8 painters and is responsible for delivering jobs on time and to a high standard. BCITO Flooring Apprentice of the Year Awards - held in Christchurch on 16 July. Coromandel flooring apprentice Stafford Moody of Fagans’ NZ Ltd from Whitianga won the Supreme Flooring Apprentice of the Year Award as well as being named BCITO Stage Three Flooring Apprentice of the Year. Stafford, who is now fully qualified, is employed by Fagans’ NZ Limited. The award was based on his performance at the Allied Trades Institute while undertaking off-job training. Principal Tutor, Jeff Henry, says “Stafford worked tirelessly to hone his finishing skills and always showed good logic with his decisions.” Stafford was “stoked” when he was named the Stage Three Flooring Apprentice of the Year. “It was a bit unexpected. There were two other classes and so you never know who is there and how good they are, but I’m very happy.”
Other award winners presented at the event were: • BCITO Stage One Flooring Apprentice of the Year – Nathan Weston of Hays Carpet Laying, Hawkes Bay. • BCITO Stage Two Flooring Apprentice of the Year – Richard Blomfield of Van Dyk Installations, Putaruru. • BCITO Flooring Planning and Design Trainee of the Year – Paul Williams of The Flooring Centre, Riccarton, Christchurch. • Villars Trophy - a special recognition award for outstanding commitment and dedication - Benjamin Meister of James Henry Joinery & Flooring, Upper Hutt. Master Joiners Apprentice Awards – held in Wellington on 27 June. David Irvine of Barrett’s Joinery Ltd, Timaru is this year’s recipient of BCITO’s Ernie Jelinick Cup for the Most Promising Joinery Apprentice. BCITO was also proud to sponsor the following awards at the event: • People’s Choice 0-4,000 hours - Ashley Hollamby, Lee Brothers Joinery, Rotorua • People’s Choice 4,001 – 8,000 hours - Michael Good, Peter Howley Joinery, Invercargill
BCITO values the opportunity to share in celebrating all high achieving apprentices who aspire to be industries’ leaders of the future. This event was a spectacular showcase of the importance the Association places on celebrating excellence. Glass & Glazing Association and Window Association of NZ’s Awards - held in June in Auckland. Anthony Bergman of Metro Performance Glass, Christchurch is this year’s recipient of the Most Promising Glass & Glazing Apprentice award. Also presented at this event was the award for the Most Promising Architectural Aluminium Joinery Apprentice. Ashley Hooker of Frankton Aluminium Ltd was the proud recipient. National Kitchen & Bathroom Association Conference - held in Napier in early August. Gillian Flynn of Kitchen Inspirations in Pukekohe was presented with the Judy Bark Cup and awarded the title of New Zealand’s Most Promising Design Student 2015. These events are a wonderful opportunity to catch up with employers and stakeholders around the country. BCITO will be celebrating more high achievers’ skills and talents at the RMB Carters’ Apprentice of the Year competition for carpentry coming up soon.
The 1st of January 2015 saw significant changes to the Building Act and Regulations that affect EVERY builder. The changes include new responsibilities such as: 1. the need to provide a written building contract for all jobs over $30,000 2. make correct pre contract disclosures to all customers and 3. to attend to any defects reported by the customer for a period of 12 months. The question is,
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and if you’re not don’t worry, simply give us a call and we’ll help ensure you don’t hit any unnecessary speed bumps. To join the Certified Builders team visit www.certified.co.nz or call us today on 0800 237 843
TRADE COACH Hiring in a tight labour market by Andy Burrows If I could have earned a dollar for every time I heard the plea, “I can’t find decent builders”, I would be a very wealthy man. There is no doubt that the building booms in Auckland and Christchurch have lead to a major shortage of skilled staff and the years of low or no activity bringing in new talent to the industry are coming back to haunt us. The flight of many talented people across the ditch to Aussie when things were quieter here is also difficult to reverse. Acknowledging that it is not simple to suddenly find extra staff with the right skills and the right attitudes, just what can you do to maximise the chances of your hunting success?
Here are six tips that may help: 1. A sk your current team for help. Referrals from existing team are the top way to find workers. To dial up the pace, announce to your team that you have openings and that you’d like them to tell their family and friends about the openings. Don’t assume that they would make a referral without being asked. Some do, some don’t. You’ll certainly get more referrals after you ask your guys for those referrals. 2. P rovide incentives for referrals. Do this only after you’ve asked for referrals for a few months. The next step is to pay a referral fee, conditional on the new team member staying some length of time. In addition to cash, alternative forms of compensation could be time off or specific gifts. 3. Promote from within. Ask yourself whether the position you are looking to fill can be done so from within. This is particularly true if you are looking for a foreman, for example,
Andy Burrows Andy Burrows has been a professional business advisor, mentor and coach since 2006. He specialises in working with the owners of constructionrelated businesses to build systems and profitability into their operations.
and you have a tradesman in the team that has the right attitude and could be trained into the new role. It takes times and will probably then make you short a lower level builder of course, but the potential pool of tradesmen at this level is typically bigger. The added advantage of promoting from within is that it creates a good environment and culture in the business, as newer team members can see a career path for themselves. 4. Use a different advertising source. Whatever you’re using now probably isn’t bad, but it doesn’t hit the entire market. If you’re advertising in the local newspaper, try seek.co.nz. If you’re on seek.co.nz, try the local newspaper. Think about community weekly newspapers for suburban newspapers, as well as the free weekly urban ‘alternative’ newspaper, as well as the major daily newspaper. Also list your openings with the state employment service. Put up fliers at the supermarket, sports clubs and other community bulletin boards. Try the placement offices at the local colleges, as well as the bulletin boards on the campuses. Ask your suppliers and other trades business owners you work with. Cast your net widely, being especially eager to use the free or low-cost services you have not used in the past. 5. Look to the regions. The building boom in New Zealand at this time is definitely not spread evenly. Building activity in some of the smaller centres is flat at best, providing a potential pool of skilled workers that may be prepared to shift to a major centre to find more reliable work. Maybe they will commute on a weekly basis rather than move. This brings a whole new set of issues around possibly needing to provide accommodation help, but think outside the square here. Desperate times require desperate measures. 6. Change your advertisement. Does your ad start along these lines: “Builder required. Must have own tools and reliable transport…” or similar? Probably most of the ads you are up against look alike and so are unremarkable. Make your ad stand out with a funky or remarkable headline and sub-headline. You are in a very competitive market, so need to market your company and the position you are looking to fill with more aggression and uniqueness. Need some help with a team development strategy? Contact me at email@example.com and we can have a conversation. I know it is not easy, but just doing what you have usually do and complaining won’t solve anything. Time to try something new?
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BUSINESS Questions to ask your bookkeeper How do you feel about asking your bookkeeper questions? Here are five eyeopening questions we think every business owner should ask their bookkeeper (and of course your lovely RightWay Accountant):
able to give you valuable insight into? Have you made verbal agreements with suppliers or customers that your bookkeeper is in the dark about? Ask the question of your bookkeeper “what do you need from me to enable you to do your job better?”. (Which of course will always, in turn, benefit you, the business owner).
1. C an you give me suggestions on how we can make our business systems more efficient?
4. Can you provide some customised reporting?
A good bookkeeper should always be searching for ways to improve the efficiency of your systems – whether that is document management, invoice approval methods, communication with accountant, checks to pick up coding and tracking errors or automating bank reconciliation through rules. It could also be through software recommendations. The best software of choice is Xero, not only because of the efficiencies that can be gained, but also because of the ecosystem of productivity applications that can be implemented cost- effectively and eliminate much double-handling of transactions. However, the primary concern is what is best for your business as each scenario is different!
2. W here are we spending dead money or wasting resource? Your bookkeeper should know your business finances inside-out. They are interacting with your financial data on a frequent basis, seeing every single transaction. As a result your bookkeeper should have a good sense of where the money is coming from, where it is going to, and where it is falling through the cracks or being wasted. Your bookkeeper should be able to give you some on-the-spot and timely pointers of where you can stop wasting money or make significant savings.
3. What do you need from me to help you help me? There are many things that business owners can do that will help and enable their bookkeeper to give them much more timely and accurate information. If you really want to get the most value from your bookkeeper, this is a question you should ask. Are there emails or information you need to forward in a more timely manner? Are there expense claims that come in late, after a financial period has been closed? Are you considering business decisions that your bookkeeper may be 16
Timely and accurate reporting should be a backbone of your business. So often business owners make decisions based on how they ‘feel’ things are going in their business, and this can often be WAY off base. The financials do not lie, so all business owners should be asking their bookkeeper to provide customised reporting that will give you the information you need to run your business, both in identifying issues and seeing opportunities, in celebrating victories and acting quickly on problems. You should be able to use your financial reports to help you make crucial business decisions.
5. If you were running my business, what changes would you make? This might seem like a big question to ask your bookkeeper, but remember they are working across a number of businesses and have often seen a lot of success and failure in their time. You don’t have to take their insight on-board, but it is a wasted opportunity not to ask! There may be some crucial keys or blind spots that you can be made aware of that may enable your business to go to the next level! These questions are also questions you should be asking your RightWay accountant (plus you can direct all the short and curly tax related questions to them as well). Your RightWay accountant should be able to simplify your tax compliance obligations and more importantly, help you grow your business and make more money. Do you want the kind of bookkeeper and accountant that you can ask these important questions? Make the move today!
Greg Sheehan is the CEO of RightWay, a team of chartered accountants/business advisors who are straight-up, super-knowledgeable and 100% behind grassroots Kiwi businesses. For more, go to rightway.co.nz
Is it cold enough? It is pretty cold out there at the moment and for many people the day starts with your hands clasped around a hot cup of coffee while you shuffle your feet in an effort to get the circulation going. If that sounds familiar then it might be interesting to stop and think about how we always recognise the discomfit of cold but we rarely consider its effects while we’re at work. The risks inherent in exposure to extreme cold are more obvious and widely recognised but few people are aware that even single digit temperatures can have a wide range of potentially harmful effects. Cold effects, and their impact on our businesses and our people, should not be underestimated. Harmful effects such as: • Increased risk of injury • Reduced work rate • Increased likelihood of mistakes • Greater potential for quality issues • Greater potential for damage to plant, tools and materials. Studies have shown that exposure to even moderately cold temperatures increases the likelihood of workplace incidents because flexibility decreases, sensitivity in fingertips reduces, muscle strength decreases, and the joints stiffen as the tissues become colder. Clumsiness may even get worse where bulky clothing and gloves are worn. The cold can also affect the ability to concentrate on the task at hand; it can increase irritability and frustration and may even incline people towards taking shortcuts just to get finished. Often the cold temperatures are underestimated because ‘wind chill’ is not factored in. Just because the thermometer on the office wall says it’s a bracing 5 or 6 degrees does not give a real indication of the temperature that outdoor workers may actually be experiencing, particularly if a stiff breeze is blowing through the site. For example, if the ambient temperature is around 6OC and the wind is gusting at only 15-16 kph, the worker is actually experiencing temperatures around 0OC. To put this into perspective, skin can freeze at around 1OC! Our individual degree of susceptibility to cold effects can be exacerbated by a wide range of factors such as, age, obesity, diabetes, cardio vascular disease, medications, drugs and alcohol. So, to combat the cold temperatures, take on board these ideas:
Food, Shelter & Wellbeing: Food and liquid intake are essential to maintain body heat and prevent dehydration. More energy is exerted when working in cold conditions as the body is working hard to keep warm. WorkSafe NZ states that if continuous work is carried out in temperatures below 0°C, heated shelters such as cabins or ‘smoko’ rooms should be made available. A strict timetable for breaks should be allowed to let employees warm up and change clothes if needed.
Training: Workers and supervisors should be trained to recognise the symptoms of cold exposure such as hypothermia. Having a trained first aid person is highly recommended. Employees should be informed about PPE, safe work practices, and emergency procedures in case of injury. While working in the cold, a buddy system should be used to look out for one another.
Personal Protective Equipment (PPE): Clothing should be worn in multiple polypropylene, polyester or Merino layers: the air between the layers of clothing provides better insulation. The outer layer should be hi-vis, rain and wind-proof, and allow for easy opening and removal. Exposed areas, such as the head, hands and feet, are just as important as the body to remember to protect. Gloves are an obvious option for your hands, however these can become bulky and affect a worker’s manual handling so instead provide warm air blowers or insulated handles on tools wherever possible.
Vehicles: Many mornings can start with windscreens covered in frost or foggy windows. Make sure as part of the pre-start inspection for any machinery with a cab that windows are defrosted and cleaned.
Planning: To avoid harsh winter conditions, plan work that is appropriate to the weather. Check weather reports before planning your jobs so that outside tasks can be done on the best possible day. It’s not about working harder – it’s about working smarter.
Site Safe NZ Inc is a not for profit, industry led organisation, that promotes a culture of health and safety in the New Zealand construction and related industries. For more information please refer to www. sitesafe.org.nz or contact 0800 SITE SAFE.
YOUR INVITATION TO THE...
Health & Safety and Building Productive Teams Roadshow 2015
LBP 3 HOURS LEARNING
WorkSafe NZ are hosting a series of seminars focusing on the absolute essentials of health and safety on your site and planning for a healthier and safer worksite. At a town near you - 34 locations across New Zealand 5:30pm-7:30pm
Effects of Construction Dust, Silica, Asbestos
31 August - 24 November HOSTED BY
Updates on Falls from Heights Questions on the Act 2015 Building Productive Teams by BCITO Meet & Chat with Local WorkSafe Inspectors Network with other Construction Leaders
Register @ www.bsm.org.nz
YOUR VALUED SPONSORS
Mon 31 Aug
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It’s all work…and play Life on site is a good mix of hard work and good humour. Learning to be a carpenter isn’t just about tools and techniques, it’s learning to push the boundaries without getting in too much trouble. I was always a little rascal when I was growing up so practical jokes on site suit me right down to the ground. There’s often a lot of banter around our workplace but we never really get too carried away with practical jokes, compared with some cruel stories I’ve heard from some of our builders’ previous experiences. I think the worst I heard was when a porta-loo got pushed over onto the door so the poor kid inside was stuck, then leaving him in there for three hours. Upon escape he promptly filled up his persecutor’s brand new truck with a full wheel barrow of the leftovers from the port-a-loo. These days I prefer a more subtle approach to retaliation. I like to watch someone suffer without them even being aware I’m getting them back. It also stops the tit-for-tat system as they are always think they’re one up and don’t owe you. For example I kept losing my bottles of sunblock. And one day I noticed five or six bottles scattered all over the roof. I know exactly who’s been doing this, but I haven’t said a word. Revenge for the past year has been succulent. If I ever walk past where he’s been working I’ll swap the batteries in his tools for flat ones or switch his things around in his tool belt or constantly changing the bits in his drill while his back turned.
It’s so satisfying hearing “how can this battery be flat; I only just pulled it off the charger?” or “why do I keep putting the wrong bit in my drill?”. Although I have defiantly taken it too far once before. My boss Dale told me he didn’t give bones to Bow, his black Labrador, because it makes him produce particularly pungent farts and stinks out their house. I just so happened to have two ripe, juicy bones in my fridge at home and made sure to bring them to work the next day to give to Bow. Laughing all day thinking about how Dale was going to be choking all evening on the dog’s stinky flatulence. But it all went so terribly wrong. Dale awoke the next morning to find vomit and excrement all over the new carpet and Bow looking particularly guilty. What Dale hadn’t mentioned to me is that he doesn’t give his dog bones just because he does smelly fluffs, it’s also because it makes him sick and vomits from both ends. I was in big trouble when I got to work that day. And I felt terrible that I’d put this beautiful Lab through the wringer. So I’ve learnt a lot in the past two and a half years on construction sites: • Always wear undies when you’re erecting scaffolding; • Don’t prank a man’s car…or his dog; • Don’t do number twos at work, it’s just not worth the risk; • And how to build a house. I really enjoy being an apprentice carpenter. I’m so lucky that I have found a job I enjoy so much. It suits my lifestyle my mental and physical abilities and most importantly my humour.
Drymix fridge winner
As part of a recent promotion run through Mitre 10 MEGA stores, trade customers were given the chance to win a Drymix bar fridge stocked with the favourite refreshments.
Georgie Young is a BCITO apprentice and works for Sheffield Construction on Waihake Island 20
Nelson’s Doug Seward was the lucky winner and is pictured her being congratulated on his success by Mike De Veer, the Trade Manager at Mitre 10 MEGA Nelson.
Email your answer to firstname.lastname@example.org with the words ‘September competition’ in the subject line and you’ll go in the draw to win.
You must include your photo, 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 Thursday October 1st, 2015.
TO WIN A MITRE 10 TRADE DARTBOARD AND A STANLEY FATMAX HANDSAW.
Answer the following question and go in the draw to win one of two Mitre 10 Trade dartboard in aluminium case and a Stanley Fatmax handsaw. Question: What was the total value of consents for all buildings in June 2015? Conditions of entry: You may enter only once/ Prize(s) are as outlined. Prize(s) are nonrefundable, 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.
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 9, Issue 3 September 2015
*369 RRP (inc GST)
Mitre 10 In Trade Magazine - September 2015