THIS EDITION’S UPDATES FOR OUR INDUSTRY INCLUDE A LAW CHANGE FOR THE RETENTIONS REGIME. Massive win for subcontractors

Plumbing businesses will have greater financial protection in the event of a construction company collapse following new legislation announced by the government in March.

The passing of the Construction Contracts (Retention Money)

Amendment Act will provide vital protections for all subcontractors.

Under the new legislation, companies and directors who choose to hold retention money against subcontractors will now be required to hold retention money on trust in a separate bank account, which is unable to be mixed with other company money or assets.

Information about the retention money held must be reported to subcontractors on a regular basis, at least once every three months. Companies who fail to meet their obligations to subcontractors will face strict penalties, including fines of up to $200,000.

The changes to the retention money regime will apply to new commercial construction contracts and existing contracts if they are amended from six months after the Act is passed.

Master Plumbers CEO Greg Wallace says Master Plumbers has strongly advocated for a change to the retention regime, which can leave plumbing subcontractors seriously out of pocket if a head contractor’s business fails.

“We are pleased the government has listened to our sector,” says Wallace. “Master Plumbers has

Fit And Proper Person Changes

In 2022, the Plumbers, Gasfitters and Drainlayers Board (PGDB) asked for feedback on its proposal to require information about a practitioner’s fitness to practice when applying to renew their licence.

The PGDB has now resolved to proceed with the proposed change, which means plumbers, gasfitters and drainlayers will need to answer five questions when renewing their licence.

always said we want any retention money held by main contractors to be fully protected. The new legislation will enforce this and the fines are substantial for company directors who fail to comply.”

As things stand, main contractors can choose to remove retentions altogether and Master Plumbers supports this as the best process.

However, where retentions are applied, the new legislation will give subcontractors stronger protection, says Wallace.

“Many of our members are small operators, who are at major risk of folding if a big construction company goes under.

“This legislative change is good news for their businesses and good news for all New Zealanders, as it brings greater security and stability to the construction sector.”

The PGDB says it is making this change as it became aware of some matters that reflected on whether some registered people remained fit and proper to be doing plumbing, gasfitting and drainlaying—including allegations of serious criminal offending and health conditions that could seriously impact on their ability to do work safely.

Practitioners only need to provide information relating to matters that have occurred since they last renewed their licence. The PGDB assures that all fit and proper person information it collects will be kept secure and confidential.

The PGDB has published Fit and Proper Licensing Guidance, plus guidance for practitioners on disclosing health conditions and how the PGDB will keep your health information safe. Find it all at www.pgdb.co.nz/trade/licensing

ACC COVERPLUS EXTRA (CPX) POLICY UPDATE

ACC will be renewing its CoverPlus Extra (CPX) customer policies from 1 April 2023. CPX policy owners can review and update their details, switch their communications preference from post to email, and change their cover amount in MyACC for Business: https://business.acc.co.nz

What is CPX?

If you’re injured and can’t work, CPX allows you to choose how much of your income you want covered and what you’ll receive in weekly compensation. This means your levy invoices are predictable, and the amount you pay will stay the same, regardless of your income.

CPX is a good option for people who are self-employed, and non-PAYE shareholders whose income fluctuates each year.

All injuries (at work and outside of work) are covered under CPX and policy owners are entitled to independence allowance, lump sums, medical treatment and rehabilitation to support recovery.

For more information on CPX and to see if you’re eligible, visit www.acc.co.nz/for-business/understanding-yourcover-options/optional-cover-coverplus-extra-cpx

PROPOSED CODE OF ETHICS FOR PLUMBERS, GASFITTERS AND DRAINLAYERS

The Ministry of Business, Innovation and Employment (MBIE) is proposing changes to four occupational regulatory regimes in the building and construction sector “to ensure the standards practitioners must meet are fit for purpose, and so New Zealanders feel confident practitioners are working with the right skills and care”.

Proposals include a Code of Ethics for the Plumbers, Gasfitters and Drainlayers regime. Master Plumbers has provided feedback in support of this proposal.

The government will make final decisions later in 2023.

People

PGDB appointments

Diana Kuhtz-Covich has been reappointed for the third consecutive year as Chair of the Plumbers, Gasfitters, and Drainlayers Board (PGDB) in 2023, and Martin de Gouw has been welcomed as Deputy Chair.

“Diana and Martin bring invaluable industry knowledge and insight to the strategic direction of the Board,” said Chief Executive, Aleyna Hall. “I look forward to the work that the Board will do under their guidance in ensuring public health and safety. I would like to thank Barry Willcox for his support and guidance as Deputy Chair for the last two years.”

Diana is a Certifying Plumber and Gasfitter and has been a member of the PGDB since September 2016. She is a past recipient of the PGDB’s Merit of Excellence Award for Gasfitters. Martin is a Certifying Plumber, Gasfitter and Drainlayer, IQP Backflow Prevention, and holds an Associated Trades Electrical Registration. Based in Christchurch, he has been a member of the PGDB since 2019 and is also on the Board of Master Plumbers, Gasfitters & Drainlayers NZ (Master Plumbers).

Smelling A Rat

Rats chewing through multilayer gas pipes at an Auckland property caused a major gas leak, reported the NZ Herald in February. The homeowner, who was overseas at the time, got a call from the builders working next door to tell him someone needed to open up his home quickly as there was a strong smell of gas.

The chewed pipe was discovered by the plumber/ gasfitter called in after the leak. The homeowner said he thought it could have resulted in a major explosion if a spark had been lit.

The company spokesperson for the multilayer pipe said new multilayer pipe installations are now required to be fitted with an excess flow valve to stop gas flow during a house fire or a significant leak. This requirement doesn’t apply to existing installations, but the valve can be retrofitted if desired.

Unauthorised Plumbing Conviction

Wellington man Faamanu Anae was sentenced in March for unlicensed plumbing and drainlaying at 12 properties from November 2019 to December 2021.

Anae has been ordered to pay $57,297.06 in reparation to his victims. “It is very disappointing that the trust of a community and their safety was taken advantage of by Mr Anae,” said Plumbers, Gasfitters and Drainlayers Board Chief Executive Aleyna Hall. “Plumbing, gasfitting and drainlaying work is regulated in New Zealand to ensure public health and safety.

“I want to remind business and homeowners to check whoever is doing work on their properties that they have a licence to do so. Before hiring a plumber, gasfitter, or drainlayer you should check our register to ensure that they are authorised to carry out that work.”