April / May 2012
The official magazine of Certified Builders Association of New Zealand Inc
CBANZ Annual Conference 18-19 May 2012 Wellington Pgs 6,7
CBANZ welcomes new Chief Executive Officer – Pg 5 Consumerism gone mad in building – Pg 12, 13 Insurance cover for LBPs – Pgs 16, 17
INHOUSE Activity approved by the Registrar
Calling all ITaB and CBANZ employed Apprentices ... ... Are you up to a – Pg 15 challenge?
Contents Unique Antarctic opportunity
pg 4
Conference discount for ITaB apprentices
pg 4
Notice of Special Business
pg 5
CBANZ Annual Conference
pg 6,7
Licensing - Supervision: LBP
pg 8
Licensing - Earning your points
pg 9
Consumerism gone mad in building sector – Geoff Hardy
pg 12,13 pg 14
3rd Annual Apprentice Challenge
pg 15
Guarantees and Insurances
pg 16,17
RBW Seminars
pg 18,19
Around the regions – Wanaka
Pg 20
Hunting & Fishing giveaway
pg 24
Health and Safety update
pg 25 pg 26,27
Q&A: The law at work – E2Law Installing insulation and getting it right
from the Chairman This is my final inhouse report as my term as Chairman comes to an end at the 14th CBANZ Conference to be held in Wellington on 18th
ITaB news
Tax and property sales – IRD
Message
and 19th May 2012. I would like to thank everyone for their support and help during this term. The three years have gone very quickly but enjoyably and it has been a bonus to have had this role. The Certified Builders Association, Department of Building and Housing and Winstone Wallboard’s Roadshow on Restricted Building Work has been in your area. The support this Roadshow has been given by CBANZ members is very pleasing to see. Thank you to Dion and Melanie for presenting a great Roadshow. To our partners thank you for your support.
pg 29 pg 30,31
ToolTube
pg 32
Licensed – Show it!
pg 32
CBANZ websites
pg 34
CBANZ Helplines
pg 35
I often wonder about those builders who don’t belong to this Association, as to how they are going to understand or work in this industry when they don’t have any of the contractual documents or Guarantees this Association has available for its members. I can only say that you need to belong to this Association so you are kept up to date in what is happening in your industry. The economy is starting to show signs of
ON THE COVER
improvement which will bring a heavy Te Papa in Wellington is the stunning venue for this year’s Annual CBANZ National Conference – 18-19 May Pgs 6,7
workload to all of us. I refer you to the article in the inhouse February/March 2012 page 12 (Make sure all your contract documents say the same thing) – well worth the read. For those still making up their minds on going to the 14th CBANZ Conference to be held in Wellington this is a great time to learn from the workshops available and network with the other members, so come and join us in Wellington.
Contact CBANZ® Farming House 102 - 104 Spring Street PO Box 13405, Tauranga Central, Tauranga 3141 Telephone 07 927 7720 Freephone 0800 CERTIFIED Facsimile 07 927 7721 Email editor@certified.co.nz Web www.certified.co.nz
See you there. Allan Shaw Chairman
3
association
news
Certified Builders Association of New Zealand Incorporated NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that the Annual General Meeting of Certified Builders Association of New Zealand Incorporated will be held on Saturday 19 May 2012 commencing at 2.15pm at Soundings Theatre, Te Papa, Wellington AGENDA 1
2011 FINANCIAL REPORT
Welcome and Apologies
A copy of the 2011 Financial Report is now available on
2 Minutes from last Annual General Meeting 11th June 2011
CBANZ website. It will also be included in the Conference
3 Chairman’s Report
Programme in delegate’s satchels at Conference.
4 Chief Executive’s Report 5 Presentation of the Annual Financial Report for the year 2011
Any items that you would like discussed at the AGM, please
6 Announcement of Directors of Board
email or fax to CBANZ CEO Grant Florence by 5.00pm
7 Special Business (as required)
Monday 30th April 2012.
8 General Business Facsimile: 09 927 7721 Email: grant@certified.co.nz
Conference discount for ITaB Apprentices ITaB Apprentices have the opportunity to further their learning by attending CBANZ Conference in Wellington and are
A unique opportunity The CBANZ Conference in Wellington offers the opportunity to make a unique purchase on Saturday 19th May. A core sample of granite from Antarctica will be auctioned with funds going to the Apprenticeship Scholarship Trust. The auction will be held at 1.30pm during the conference lunch break.
sponsored by the AST Trust
The granite sample was donated to the
(Apprenticeship Scholarship
Cook Strait region of CBANZ by Webster
Trust) 50% discount off the
Drilling and the region has kindly passed on
Registration fee. (Function
the donation for the auction to benefit the
costs are at full rate.) Go
Apprenticeship Scholarship Trust.
online www.certified. co.nz and download the
The core sample was taken from the Italian
Registration form, complete
Base at Terra Nova Bay in Antarctica in 1999.
and send to CBANZ.
It is 300mm in diameter with a 100mm hole, approx 75mm thick though the thickness varies.
4
come out into the sea well below sea level. The hole then provided a conduit for pipework to the seawater intake.
The pilot hole was drilled to provide a large
Pipes draped over the bluff were being
diameter hole through a granite bluff to
constantly crushed by the sea-ice.
5
6
7
From the desk at Operations
Licensing
Supervision – LBP
By Jason McClintock Operations Manager Licensed Building Practitioner
On page 11 of your CBANZ Site
Along with the suggestions listed on
Handbook the Association offers advice
page 3 of your Site Handbook this is
for wage earners and labour-only
compiling evidence of your competency
engagement associated to supervision.
involving supervision. It also creates a
Do not assume the role of supervision
paper trail of trades involved with your
– this must be acknowledged in writing
particular job.
and preferably within your terms of engagement i.e. contract/employment
The free record of work [memoranda]
agreements.
that you receive with the Site Book
As an LBP you will be required to declare
templates and record of works that
within your Record of Work [memoranda]
you can use for your specialist trades,
that supervision took place. Don’t forget
no excuses for them not to have these
to note who was the contractor engaged
signed before they leave the site.
will now include producer statement
in the restricted building work. Prior to licensing as a practitioner you had a “duty of care” to the homeowner and subsequent homeowners. Under licensing this does not change, duty of care also encompasses the LBP engaging in the role of supervision. On page 3 of your CBANZ Site Handbook the Association has listed some guidance points to assist you with meeting the requirements of supervision. In addition
The scope of the carpentry licence covers many aspects of Restricted Building Work on site from footing excavations to installation of bracing plaster board. Many of these specialist trades will require supervision for a record of work [memoranda] to be signed off.
to these you might like to obtain a producer statement from the unlicensed contractor, which in itself is a record of work for the job file outlining ...
•
company legal identity
•
company details
•
site address
•
contractors qualifications – are
email Millie Turkington on
they an approved applicator of
Millie.t@certified.co.nz
a system? [this is a competency
The description under the licensing
work to an extent that is sufficient to ensure that the building work
•
These will be charged out at $10
•
scope of work undertaken
plus additional free record of
•
product/install guarantees on
•
8
offer is performed competently
To order your Site Handbooks
indicator]
system is as follows. Provide control or direction and oversight of the building
who the contractor is and
•
have them sign as a declaration
complies with the building consent
that their work complies with the
under which it is carried out
approved plans and specifications.
for a pack of 5 Site Handbooks works [memoranda] and producer statement templates.
earning your points
Licensed Building Practitioner skills maintenance points One hour learning = one skills maintenance point Any learning of building related information of a technical nature is valid for points
• • • • • • •
inhouse Local members meeting Reading a merchant’s magazine Onsite training Any off site training or seminar Business training that will affect your building business Formal training such as a level 5 course
Don’t forget to keep your own register of points accrued and evidence of attendance e.g. meeting flyer.
9
Consumerism gone mad in the building sector
Geoff Hardy is a specialist commercial lawyer in Auckland and also a member of the CBANZ Board. Contact Geoff on 09 379 0700 geoff@madisonhardy.com.
hold builders to account for shoddy
leave the Council to recover from the
workmanship, and that the power
other liable parties.
balance was very much in favour of the builder.
Despite this, it remains the official view that homeowners are starved of legal
The reality, in fact, is the opposite.
rights and remedies. And so a raft of
Our law of contract and our tort of
consumer-friendly provisions were duly
negligence, which applies to builders as
approved by the Cabinet in August
much as to anyone else, has been around
2010, and have found their way into the
for centuries. Since 1993 consumers have
Building Amendment Bill (No. 4) that will
also had the benefit of the guaranties
shortly be referred to a parliamentary
and remedies that apply to building
select committee for a round of public
services under the Consumer Guarantees
submissions.
Act. Homeowners can enforce those laws
The leaky home crisis was the catalyst for most of the new building laws that have been introduced over the past decade. Those reforms have largely stemmed from the Hunn Report of August 2002, which was a very good analysis of the state of the building industry at the time, and the factors that gave rise to leaky homes.
against builders in the Disputes Tribunals
If the No. 4 Bill is passed without
and in the Courts, just like any other
modification, then homeowners who
citizen can.
believe they have been the victims of shoddy workmanship will have a choice
But unlike any other citizen, homeowners
between five different laws covering
have two additional methods of resolving
essentially the same thing, but all
their grievances that are unique to the
slightly inconsistent with each other.
building industry – the Weathertight
They will be able to sue for negligence,
Homes Resolution Service, and the
or for breach of contract, as they have
Construction Contracts Act 2002. On
always been able to do. They will also
top of that, under most of the building
be able to enforce the builder’s implied
contracts in common use they have the
service guarantees under the Consumer
options of negotiation, mediation, and
Guarantees Act. They can also enforce
arbitration as well.
the implied warranties under the Building Act, which are very similar to the
They can also enforce their rights. Owner-
Consumer Guarantees Act guarantees,
operators of building companies that
but run in parallel with them. Finally,
However the one weakness of the Hunn
have gone into liquidation are just as
they can enforce the new one year
Report was that it made a number of
much liable as their insolvent companies
warranty for defective building work.
assumptions about the inadequacies
would have been. And in New Zealand,
of our justice system, without a proper
Councils are liable to homeowners to a
The implied warranties under the
understanding of the relevant law. The
much greater extent than in overseas
Building Act require the builder to be
overall thrust of their conclusions was
countries. Plus, under our joint and
conscientious and diligent, to comply
that homeowners were at a significant
several liability rules the homeowner can
with the plans & specifications, building
disadvantage when attempting to
often recover 100% from the Council and
consent and Building Code, to achieve
12
deemed to be correct.
the agreed completion date, and to meet
or arrange for it to be built, or acquire a
the client’s reasonable expectations.
household unit from the first owner, in
Those obligations seem fair enough, but
each case for the purpose (or with the
Of course all these rules assume that
if the homeowner believes they have
intention) of selling it. However the same
shoddy workmanship is self-evident,
been breached, he can simply cancel the
right to cancel does not apply, so the
whereas in reality it is often just a
building contract. It doesn’t matter how
purchaser’s remedies will be found in the
genuine difference of opinion. Builders
minor the breach is or how far advanced
sale and purchase agreement itself, or
may argue that the alleged defects are
the project is, and he doesn’t have to
the Contractual Remedies Act 1979.
too trivial or nit-picky, or the client wants a better standard than the one agreed
give the builder an opportunity to fix it In addition, if the homeowner believes
and paid for, or the work won’t be
there has been “defective” building
shoddy once it is finished, or the defect
These warranties (and the corresponding
work, and the defect is capable of being
has been caused by the designer or a
right to cancel) apply not only to
remedied, he has the option of notifying
tradesman who has contracted directly
builders, but also to designers (architects,
the builder or designer within one year
with the owner, rather than the builder.
engineers, and draftsmen) who design
of completion. In that case the builder
the structural components or the
or designer must remedy the defect (in
The smorgasbord of rights and remedies
external envelope of a household unit.
his own work) within a reasonable time.
that homeowners are going to be given,
However, all the homeowner needs to
will only make these issues much more
The warranties are also automatically
do is “assert” that there is a defect. If
complex to resolve, not less.
implied into every agreement for the sale
the builder or designer does not then
and purchase of a household unit where
prove (on the balance of probabilities)
the vendor is an “on-seller”. On-sellers
that it is not in fact a defect, then the
are people who build a household unit,
homeowner’s assertion is automatically
first.
DISCLAIMER: This article is not intended to be relied upon as legal advice.
13
Apprentice news .
Completion Certificates
From your co-ordinator
ITaB would like to congratulate the following What an incredible two months since the
Apprentices on Completion of Apprenticeship
last inhouse. On 1 February l started a
Carpentry
national roadshow with the Department of Building and Housing (DBH) presenting
Andrew Sloan
BOPP
the latest information on Restricted
James Gilbert
CPIT
Building Works (RBW).
Joseph Henry
CPIT
George Cowper
NMIT
The roadshow has exceeded
Joel Davies
Northtec
my expectations and the DBH staff were so impressed with our
Cameron Barratt-Boyes
UNITEC
professionalism they decided not to use independent contractors to do the
Matthew Bell
UNITEC
majority of the events and only sent their own staff (kudos for CBANZ).
Stefan Biggelaar
UNITEC
Ian Burt
UNITEC
We have been using venues throughout NZ – from our loyal resellers
Michael Christianson
UNITEC
to Unitec and polytechnics – which have paved the way to get all the
Joe Dowden
UNITEC
information to our members and unaligned builders.
Tyson Edwards
UNITEC
Jonathan Hicks
UNITEC
The feedback from each region and the numbers attending shows how
Daniel Sutton
UNITEC
aware we are of the importance of Licensing. We have given away over
Adam Bungard
Wintec
500 membership packs in the past 6 weeks, so hopefully we will start
Martin Goile
Wintec
seeing a real spike in our membership.
Bryce Hickey
Wintec
Nathan Loveridge
Wintec
A special thank you to Winstone Wallboards, loyal supporters of Certified
Joel Macreadie
Wintec
Builders, who have been sponsoring every event throughout the country
David Mulingani
Wintec
and are once again supplying first prize for our Apprentice Challenge.
David Samson
Wintec
Dylan Tuckey
Wintec
David Young
Wintec
On that note, we have sent out all the competition forms for our National Apprentice of the Year, which once again is being supported by ITM in all the regions. If you have a young apprentice please make sure you let them
CPIT – Christchurch Polytechnic Institute of
know it’s happening, we need as many participants as possible to make it
Technology – Canterbury Region
as successful as last year.
NMIT – Nelson Marlborough Institute of Technology – Nelson Region
Ben from Builtin NZ and myself joined Deane Fluit and the Central Otago
BOPP – Bay of Plenty Polytechnic
CBANZ team to help raise the profile of CBANZ in the southern region at
Wintec – Waikato Institute of Technology
the 75th Annual A&P show in Wanaka. Over 20,000 people attended the event over two days, so it was well worthwhile, with great feedback from
Congratulation on the completion of
the public, so keep up the good work guys.
Apprenticeship in Carpentry, proudly supported by the Apprentice employers, Polytechnic’s and Tutors
See You On The Road
and ITaB.
Dion
ITaB Stickers are being sent directly to
Green Cards offer numerous benefits:
all new ITaB employers, please contact
Itab Green Cards are now being sent
ITaB directly if you would like free promotional stickers to show your support of the ITaB programme.
• Vodafone, Swazi Clothing, Caltex
directly to the paid apprentice.
and AA and Fisher & Paykel, Harvey
The benefits include;
Norman, Noel Leeming discounts and
• Discounted Publications including the NZS3604:2011, E2 Moisture Manual
plans upon application. 0800 482 284 • General Liability/Car/Contents
and SNZ 3604 onsite Handbook.
discounted insurance call Gwenda
Contact Millie T ph 0800 482 284
CBA Insurance ph 0800 237 843
• inhouse Magazine delivered bi-monthly with articles and information to keep
Contact ITaB on 0800 482 284 if you have
you up to date with the industry.
any problem relating to your Green Card.
3rd Annual Apprentice Challenge Calling all Apprentices‌ Are you employed by a Certified Builder or are you an ITaB apprentice?
Sign up to the challenge and elevate yourself to the next level. Step one: Fill in a registration form and questionnaire return to dion@certified.co.nz or if you are an ITaB apprentice return to your Tutor at your enrolled Training provider before 15th April. To download your application, please visit www.certified.co.nz, click on the About Certified Builders tab, click on conference information on the left hand navigation bar. Step two: Finalists will be chosen from the regions to master a practical challenge, held at your local ITaB provider or ITM store, you will be advised of venue and dates. Full details will be supplied of practical challenge requirements.
Step three: The regional finalists from this challenge will receive an all expenses paid trip to Wellington* to attend the Certified Builders National Conference 18th-19th May. Step four: The winner will take home an Outward Bound Course to the value of $3,750. The runner up will win $2,000 worth of DeWalt power tools and the third placegetter will win a $1,000 voucher from ITM. For more details contact: Dion Tapper on 0800 482 284
* Conditions Apply
15 15
• Include it in your quote as “Homefirst 10 Year Builders Guarantee – underwritten by CBL Insurance Limited” • Complete the guarantee application at the same time as your building contract • For an application form contact Millie T on 0800 237 843 email: millie.t@certified.co.nz
16
A man noticed that his credit card had been stolen but didn't report it. The thief was spending less than his wife.
17
Around the regions
Restricted Building Work seminars The Department of Building and Housing (DBH) roadshows on Restricted Building Work – in conjunction with CBANZ – have been rolling through the country.
well organised and professional the EIT Carpentry team is. We even had inquiries from the DBH speaker if it would be possible to host other future seminars at EIT. The food for the evening was provided by EIT’s hospitality students and was very well received. It was definitely the best spread we have had at any venue
and brought another positive comment, from a roadshow speaker. We also took the opportunity to present a power point presentation on all of our carpentry programmes from level 2 to level 5. Builders really enjoyed the evening and we received a lot of positive comments and encouraging feedback on the direction we are taking
By Thursday 1st March the roadshow had reached Hawke’s Bay. The event was a great success with 153 builders turning up to learn about the changes in the industry with the introduction of the new Licensed Building Practitioners (LBP) licences. The EIT-organised event was the biggest turnout the roadshow has had to date from when it started in Invercargill and began working its way north from the beginning of February. The great attendance was a reflection of EIT’s dedication to the local building industry. EIT made sure that as many builders as possible were aware of the event and able to attend. The speakers were very impressed with the EIT trades complex and how
18
Above and top: Builders pack the Restricted Building Work seminar at EIT in Hawke’s Bay.
Builders are all ears at the Restricted Building Work seminar in Papakura last month.
with our carpentry programmes. The EIT carpentry team was very busy with questions about signing up apprentices and securing work
experience for our students. Overall a great evening and a fabulous way to showcase the top quality facilities and get greater industry involvement and
support for EIT’s carpentry programmes. – Shane Sigglekow, Carpentry Apprenticeship Programme Co-Ordinator, EIT
19
Around the regions
Central Otago builds CBANZ brand at Wanaka show Wanaka had its 75th Annual A&P Show this year and being the
roof trusses sponsored by Mitre 10 Wanaka (our two main
second largest show of its type in the country the Central Otago
local suppliers) CBANZ Central Otago built a little house
CBANZ branch decided to put a stand in. The main aim was to get
for Ben and Dion. The bonus for them was the coffee cart
the CBANZ brand out there and noticed by the public. CBANZ
parked right next door which provided a constant queue so
Business Relationship Manager Dion Tapper and Ben Rickard from
you could see people looking and reading.
Builtin were asked to attend – two reasons for this: Central Otago CBANZ President Deane Fluit says his gut 1. If the public asked specific questions about insurance or CBANZ membership the people were there to give the answers 2. To give local members the opportunity to have a personal client.
feeling was that the public needed to be made more aware of the CBANZ brand: “So hopefully we helped this a little bit.” Deane says a big thank you is due to National Support Office for sending signage and support information and also to
So with the framers sponsored by PlaceMakers Wanaka and the
Dion and Ben for their support during the weekend.
Best Practice Guidelines for Working at Height The Best Practice Guidelines for Working at Height in New Zealand are being published by the Department of Labour. These guidelines provide practical guidance for employers, contractors, subcontractors, and employees and all others engaged in work associated with working at height. They have been prepared in association with 21 representatives from businesses and organisations in the construction industry in New Zealand. Preventing falls from height is a priority for the Department of Labour and the guidelines are designed to help everyone meet their obligations under the Health and Safety in Employment Act (1992). The Department is producing a Working Safely at Height Toolkit of 6 factsheets to be used together with these guidelines. Builders, roofers, electrical workers,
the most effective controls for managing
The factsheets cover topics including
painters and decorators are the most
the hazard of working at height, starting
planning a safe approach to working at
likely to fall from height and seriously
with elimination (do you need to go
height, how to select equipment for the
hurt while they are working.
up there at all?), then isolation (edge protection, scaffolding), and only then
job, short duration work at height, edge protection, temporary work platforms
The Best Practice Guidelines for Working
and restraint technique.
at Height in New Zealand provide
minimisation (fall restraints, ladders).
everyone who is involved with working
It’s also about making sure people have
Investigations by the Department of
at height clear direction on how to
the skills and supervision to work safely
Labour show that more than 50% of
manage the work in a way that will bring
at height.
falls are from less than three metres and
down the death and injury toll. Falls from height in construction are
approximately 70% are from ladders and roofs.
These guidelines are generic and not
preventable. Doing nothing is not an
specific to one particular industry so they
option.
Construction workers are getting
can work together with other guidelines
seriously injured and killed from falls
that cover specific issues unique to
from height for a number of reasons
particular working environments.
For more information about working safely at height visit www.dol.govt.nz/
• • • •
the wrong safety gear has been
The Department is reminding everyone
prevent-falls/ or call the Department’s
selected
to think about the hazard of working
Contact Centre 0800 20 90 20 if you have
the gear isn’t up to standard
at height – before the job starts, when
specific questions or concerns about your
the gear hasn’t been set up
it’s kicking off, and when the work is
workplace.
properly
underway.
there’s nothing in place at all to ensure the safety of workers.
22
It’s about spelling out the need to select
Recent amendments to the New Zealand Building Code (NZBC) in relation to reinforced concrete slab-on-ground are detailed as part of the ‘Coming Home to Concrete’ campaign, recently launched by the Cement & Concrete Association of New Zealand (CCANZ).
Reinforcing concrete best practice From 1 August 2011 the NZBC B1
benefits of concrete, and in turn
Compliance Document required
help ensure resilient and healthy
that concrete slab-on-ground
homes for all New Zealanders.”
constructed in accordance with NZS 3604:2011 Timber Framed Buildings
Along with the slab-on-ground
on good ground be reinforced with
leaflet, the Coming Home to
a minimum of 2.27kg/m of Grade
Concrete campaign provides a
500E reinforcing mesh fabric which
range of print and web-based
conforms with AS/NZS 4671 Steel
resources to help all those involved
Reinforcing Materials.
with residential construction make
2
informed choices and optimise the To assist builders to produce a robust
potential of concrete and concrete
and resilient concrete slab-on-
products.
ground CCANZ has made available ‘Residential Concrete Slab-On-Ground
Key amongst these resources is a
Floors’, an easy to read 12-page
short film fronted by television
leaflet that gives guidance on good
personality Kevin Milne that
practice in relation to such aspects
highlights the candid views of
as slab levels, concrete strength,
homeowners, architects and
the new reinforcing requirements,
builders, during interviews
control joints, bay sizes, crack
structured around the attributes of
minimisation, as well as placing,
concrete.
finishing and curing techniques. A copy of the Residential Concrete The leaflet is part of the Coming Home
“As we move forward to tackle the
to Concrete campaign, which has been
challenges posed by the Canterbury
designed to raise awareness of the
rebuild as well as the predicted housing
advantages of residential concrete
shortage in Auckland, the significant
construction, from floor slabs through to
role concrete can play in providing
fully concrete houses.
comfortable, stylish and strong homes at affordable prices must be part of
CCANZ chief executive Rob Gaimster
everyone’s thinking.
believes that New Zealand currently has a unique chance to fully explore
“The Coming Home to Concrete
the possibilities that can be achieved
campaign illustrates how we have the
through the use of concrete and concrete
opportunity to enhance our residential
products in our homes.
building stock by utilising the many
Slab-On-Ground Floors leaflet is enclosed with this issue of inhouse magazine. For additional copies contact CCANZ – admin@ccanz.org.nz. Or to find out more about the benefits of Coming Home to Concrete visit www.cominghometoconcrete.co.nz
Builders Brag Page Send us in your hunting & fishing pics and we’ll reward those that get published on this page with a Hunting & Fishing New Zealand Fleece Gutbusta Bush Shirt valued at $39.99. Send photos to: Builders Brag Page PO Box 4472 Palmerston North Or email in hi-res to erin@huntingandfishing.co.nz (be sure and identify clearly that you are sending an entry for the Certified Builders Brag Page as well as full contact details!) Please note photos submitted must be from a CBANZ or ITaB member or a company affliated with Certified Builders.
Above: ITaB apprentice Callum Rogers, of MVZ Builders Ltd in Nelson with a 197 pound boar taken in Nelson area. Left: Apprentice Mark Gill from CBANZ member Dunnet Builders in Napier with a goat.
32 stores nationwide Ph: 0800 486 834 (0800 HUNT FISH) Shop online or register for catalogues www. huntingandfishing.co.nz 24
A Health and Safety update: Department of Labour to Get Tough There are a number of compelling reasons to have an effective Health and Safety System. The most obvious of these include the desire to keep everyone safe and the need to meet the legal requirements of the Health & Safety in Employment Act.
All builders intending to do EQR work
Until recently the Residential Building
No doubt 2012 is going to get busier for
Industry appeared not to be a prime
all of us and Health and Safety is always
target of the Department of Labour
the first thing to get stuck on your “to
(DoL). In certain parts of the country
do list“ when this happens. We urge you
the only time you would ever see an
to ensure that you have an approved
inspector was if you reported a serious
system in place. They are very simple and
harm injury. As part of DoL’s new
inexpensive.
will need to have or seek a system that meets this pre-qualification standard. HazardCo can help you meet the requirements of the Project Managers running insurance projects in Christchurch. We are available to provide assistance for all builders working or intending to work in the Christchurch area.
Mark Potter 0800 555 339 mark@hazardco.com www.hazardco.com
The year ahead
initiative to reduce the number of falls from height, this is about to change.
I am sure you do not want to become another builder who thought “it would
Department of Labour inspectors will
never happen to me“.
focus on getting out and visiting sites to check if they are up to the required standard. Special attention will be given to working at height and fall protection. If they find a problem they will issue an improvement notice that requires you to fix the issue. If they return, and the required improvements have not been made, they will issue instant fines. For more information on the new Fall From Height Prevention Campaign go to www. dol.govt.nz/prevent-falls/
Update on Christchurch As those of you already in Christchurch will know you cannot do any EQR related work without having a Health and Safety System that meets the agreed standard. This standard is much higher than previously expected in Residential Construction as the Key Industry Associations and Project Managers are taking the opportunity to raise the bar. All contractors need to complete a prequalification document that shows their Health and Safety System meets the required standard.
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Tax and property sales You’ve just sold a property. Have you checked to see if there are any tax
Your income tax return
2. What is my history of buying and selling properties? 3. Am I a builder, developer, or
implications? Even the sale of your private home could be taxable in some
Any rental income you earn is
property dealer, or associated with
cases. It pays to get it right! In this article,
taxable, and expenses related to
any of these people?
Inland Revenue tells you what you need
earning that income are deductible.
to know.
Please get advice! The tax laws applying to property transactions can be complex. In this article, we only give you an overview of some of the most common situations. If you’re planning to buy or sell a property, we recommend you talk to
In general, if you buy a property solely as
than its book value, the depreciation
an investment to earn rental income, and
recovered becomes taxable income.
you have no plans to resell the property, any profit on sale will be a capital gain,
Do you need to pay income tax on
which is not taxable. You won’t be able
your profit from a property sale? The
to claim a deduction if you make a loss.
sale price is returned as income in your tax return, and you deduct the
On the other hand, if you buy the
purchase price in the same return.
property with the firm intention of selling it when prices rise, you’ll have
Any losses are calculated in the same
to pay income tax on your profit. A loss
way.
on sale is likely to be deductible. This rule applies even if you’ve owned the
your tax advisor before you take action.
property for a period of time, or you’ve
Properties are ‘big ticket’ items and if you’re not aware of all the ins and outs,
Your GST return
rented it out while you wait for the right
If you receive rent from a commercial
It’s important to note that you may
you could run a significant financial risk. Please refer to our guides!
property, you need to include the rental income in your GST return.
There’s a lot of general information about
You can claim GST credits for some of
properties and tax at www.ird.govt.nz.
the expenses related to earning that
Please refer to the following guides:
income.
• Tax and your property transactions (IR361) • Buying and selling residential property (IR313)
When a property is part of your taxable activity, you may be able to claim a GST credit at the time you purchase the property. When you sell,
• I have bought and resold a property
you’ll probably have to include GST
at a profit. Do I have to pay tax?
in the sale price and pay the GST to
(IR314)
Inland Revenue.
All of our guides are found under ‘Forms
Rent received from a residential
and guides’ in the right-hand margin of
property is exempt from GST. As such,
the homepage.
you are unable to claim GST credits for any expenses related to this
Our property decision tree can indicate
The intention test
If you sell a rental property for more
source of income.
time to sell.
have to pay tax even if you only sell one property – the deciding factor is your intention at the time of purchase.
Your history People who have established a regular pattern of buying and selling properties may fall into the category of ‘property dealer’. If you’re a property dealer, you’ll need to pay income tax on your profits. Any losses on sale will be deductible.
Builders, developers, and property dealers If you’re a property owner, and you or an associate are involved in dealing in land, building and construction work, or in subdividing or developing land,
whether you have a tax liability when
you may be subject to special tax rules.
you sell a property. You can access the
For example, the amount of time you’ve owned your property becomes an
decision tree by clicking through the path “Businesses & employers/Residential
As an overview, to determine if a
property/Buying property/Why your
property sale is taxable you need to ask
reasons for buying a property are
yourself three questions:
important”.
1. What was my intention when I bought the property?
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important consideration for tax purposes. If you or an associated person are undertaking any of the above activities and:
Looking Superior • sell any property that is part of the assets of the activity, or • sell any other property (which is not part of the activity) within 10 years of buying it or (for builders) completing improvements to it, any profit may be taxable. There are some exceptions: the sale of your private home or business premises will not normally be taxable under these rules. Example Trent started buying and selling residential houses in 2004. By the end of 2004, he had established a regular pattern of buying and selling and was a dealer for tax purposes. Trent co-owns Trent Rentals Ltd, a company that buys residential rental investment properties. In January 2006,
Phil Penney & his team at Superior
Thanks to Dina (Phil’s wife) and her
Construction Limited are looking
careful fashion decisions, the team are
smart with their work shirts branded
looking great!
up with their Company name and the Certified Builders logo!
Keep up the great looks guys!
the company buys a rental property to hold and rent. In December 2010, rentals in the area are falling and the company sells the property. Income tax would not normally be due on the profits from the sale, because the company bought the property as an investment. But, because Trent Rentals Ltd is associated with Trent, who established himself as a dealer before this property was bought, and it was sold within 10 years, Trent Rentals Ltd must pay tax on the sale regardless of the company’s original intention to hold the property as a rental investment.
Private homes Buying and selling your private (family) home usually has no tax consequences. However, some people buy a family home intending to resell it, and they may do this regularly as a way of earning income. If you have a regular pattern of buying and selling your family home, you may have to pay income tax on your profits.
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Q&A – the law at work The following questions have arisen in
at least for a period of time while
cases in which e2Law has recently been
you try to preserve your existing
involved:
customer relationships.
EMPLOYEE OBLIGATIONS AFTER EMPLOYMENT ENDS Q:
recently told us that he is planning an
operating in a very tough
extended 3 month holiday overseas
environment with a lot of
to visit his children in the UK and
competitors. Our senior foreman
Europe. He seems to be proceeding
has resigned from employment and
on the basis that he can use up the
is currently working through his
15 days annual leave he has owing
notice period. He has told us he is
and he can take the balance of the
going to work for one of our main
holiday as leave without pay. We are
competitors. We have checked his
agreeable to him taking the 15 days
employment agreement and there
annual leave but in our small business
are no restraint of trade or similar
it is simply not practical to be one
clauses. Can we stop him contacting
employee down for that lengthy
our customers or competing with us
period and we are concerned that
after employment ends? He is very
this would also set a precedent for
popular with our key customers and
other staff to take extended breaks.
they could well choose to transfer
What are our rights here?
employer.
A:
e2Law — Employment &
Q: One of our builder employees has
We are a small building company
their building business to his new
Danny Jacobson & Trudy Marshall
LEAVE WITHOUT PAY
A:
Environment Law
A:
Yes, this is unlawful. You cannot pay out annual leave other than when an employee leaves his or her employment, or in accordance
An employee does not have the right
with the 2011 amendments to the
to take leave without pay whenever
Holidays Act, which allow for up to
While your employee will continue
he or she pleases. It is entirely up
one week’s annual leave to be paid
to have a number of obligations
to you whether you agree to this
out in every entitlement year if an
to you during employment,
extended break or not. If you advise
employee requests and an employer
once employment ends there
your employee that you do not agree
agrees. It is unlawful to include
is no legal duty or obligation
to him taking the leave without
a requirement in an employment
towards a previous employer. If
pay, it will then be up to him to
agreement (or otherwise) that an
there are no restraint of trade
either shorten his holiday to the 15
employee must make a request for
or non-solicitation clauses in his
days annual leave, or to resign from
leave to be paid out. A requirement
employment agreement, then after
employment in order to take his
to pay out a portion of leave
her employment ends he will be
extended break.
cannot be a term or condition of
able to contact your customers, encourage them to move their
PAYING OUT HOLIDAY PAY
about terms and conditions relating to salary or wages. An employer
business to his new employer, encourage other employees to
employment or raised in negotiations
Q: For some years, we have followed
may have a policy that allows the
change employment, and actively
a practice of paying out any annual
employer not to consider a request
compete with you. For the future,
leave owing to each employee at
for pay out – if so, the employee
you may consider updating your
the end of every financial year
cannot make the request.
agreements to include restraint of
regardless of whether the employee
trade, non-solicitation of customers
actually takes the leave or not. This
and non-solicitation of employee
works for us as it keeps annual
clauses. These can provide your
leave balances under control. One
business with vital protection in the
of our admin staff has told us that
event that a key employee leaves,
she thinks this is unlawful – is it?
Trudy Marshall and Danny Jacobson are Partners at Employment & Environment Law, Barristers and Solicitors, Tauranga. They operate the Employment Helpline for CBANZ members: ph 07 928 0529. They have also produced a Guide for Employers in the Construction Industry which CBANZ can send out to members on request.
(The above is by its nature general, and is not intended to be a substitute for legal advice).
29 29
Installing insulation and getting it right! By Verney Ryan, Beacon Pathway
While the focus of Building Code changes and Government subsidy schemes has been on encouraging more insulation in both new homes and retrofitted into existing homes, there’s growing concern that poor installation is undermining the campaign.
Tips for good insulation • Only insulate when moisture content of timber is less than 16%. • Fit insulation closely to framing – there should be no gaps around the outer edges of the segments and framing, or between butted joins. • Make sure there are no folds in the segments themselves. • Make sure there is no tucking. • Insulation material should not be
Installing insulation incorrectly reduces its
compressed – it will not perform to
effectiveness at stopping heat loss. BRANZ
its best.
fitted insulation to a wall panel and tested different sized gaps in their Guarded Hot Box1. They found that R2.8 insulation with
• Insulation materials should be dry and undamaged. • Leave a clear space of at least
16mm gaps would only perform as well as
25mm between the insulation and
R1.4 insulation. Even 4mm gaps reduced
roof or roof underlay.
the R value by 12-15%.
• Leave clearances around recessed downlights, unless they have a
The danger is that if installation
CA (close abutted) rating. Better
problems occur throughout the house,
still, don’t use downlights in your
the cumulative effect on the thermal
build at all – read about Consumer
performance of the house may mean that
NZ tests on downlights and
it does not meet the energy efficiency
heat loss to find out why (www.
requirements of the Building Code, even
consumer.org.nz/reports/recessed-
if the correct R value materials are used.
downlights). • Leave clearances around auxiliary
Typical problems
Ensuring good installation The Insulation Association of New Zealand has been formed to encourage better performance in the supply and installation of residential insulation throughout New Zealand. The Association has developed a training programme offering industry-specific training in site safety and on the key requirements of NZS 4246:2006. To get the best quality installation for your clients, consider using a graduate of their training programme. You can find the names of graduates on the IAONZ website (www.iaonz.co.nz) Alternatively, if you prefer to install insulation yourself, consider undertaking the IAONZ training programme – you may be surprised how much you can learn about this important aspect of the builder’s craft. The better the installation, the better the return for your clients in lower power bills, and the warmer and cosier they will be in their new home. All part of the quality build process.
control equipment, metal chimneys and flues.
An audit undertaken for EECA (the Energy Efficiency and Conservation Authority) of insulation installed in new
performance were: folds, tucks, gaps,
build homes provides worrying reading2.
compressions, missing insulation, and a
None of the installations, in their audit
lack of insulation to the middle of the
of 58 houses, met the requirements of
top plate.
About Beacon Pathway
Energy Efficiency – Installing Insulation
Other issues with installation included
Beacon Pathway is committed to the
in Residential Buildings. This Standard
the lack of a 25mm gap to the underside
transformation of New Zealand’s
provides a best practice guideline to
of the roof underlay, which has the
homes and neighbourhoods, working
installing insulation in order to achieve
potential to transfer condensation
to make them higher performing, more
good thermal performance.
and moisture to the insulation; as well
adaptable, resilient and affordable
as significant safety faults through
through demonstration projects, robust
The audits found typical problems
insulating over or around recessed
research and a collaborative approach
affecting the home’s thermal
downlights and electrical equipment.
to creating change.
New Zealand Standard NZS 4246:2006
1. Cox Smith, I. (2010) SR232 Using infrared thermal imaging to audit retrofitted wall insulation in houses. 2. Symon, S. (2010) Investigating quality of installation in new build residential houses.
30 30
www.beaconpathway.co.nz
These photographs show typical installation problems from a range of houses. Using a high quality insulation product with a high R value is important – but no matter which product you use, installation of that product is the key to good performance.
Tucks and folds in the insulation reduce its effectiveness and mean that the money spent on insulation is wasted.
Avoid compression and slumping of the insulation – it needs to be a good even fit to work effectively.
Gaps between blanket insulation laid in the ceiling will reduce the effectiveness considerably.
The whole area should be insulated for the best possible thermal performance – gaps like this ‘bleed’ heat from the building.
Leaving gaps between insulation and framing allows heat to escape – and this can halve the effectiveness of the insulation.
Loose fill has covered this downlight – this is a significant fire risk.
31 31
ToolTube - the CBANZ Video Channel bringing business education into your home
Now available to gold card members, enter this link into your address bar/URL http://www.certified.co.nz/index.php/pi_pageid/199 and watch the first of several educational videos that we will be bringing you to make your lives easier. The video will be no more than 10 minutes long and not full of jargon. • The first will step you through filling out your licensing application through the qualified streamlined process. • The second video demonstrates the non qualified process for the site licence. • In the third video Jason McClintock gives an overview of life with licensing, preparing yourself for when the assessor calls and why you may wish to consider a site licence. CBANZ will keep you informed when more ToolTube become available.
Licensed?
Show it!
Certified Builders can now supply you with a suite of LBP stickers for: invoices, vehicles, letterheads, envelopes, windows and business cards Stickers are available in black/white or green/white of the LBP logo. LBP Stickers Window stickers (150mm round)
Green/white version
Black/white version
$3.50 each
$3.50 each
$7.50 per sheet (40 per sheet)
$7.50 per sheet (40 per sheet)
Stamp size stickers for use on business cards, invoices, letterheads, envelopes etc (25mm round)
Please note: LBP stickers will be supplied only to those of you who are current Licensed Building Practitioners and this will be strictly regulated. Special thanks to Tauranga member Blair Arrowsmith for the inspiration and ideas for the LBP stickers.
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In
3
easy steps
you can have youR very own 4-page website
just $695 (+ GST)
Take a look at one of the websites we have created www.reliabuilt.co.nz What they wanted: The Reliabuilt team specified a clean and user friendly website with major emphasis on their past projects.
Job Build: The home page was designed to draw the browser’s attention directly to Reliabuilt’s past projects, with easy viewing without leaving the home page.
Job Outcome: A vibrant 4-page website with a Team page to build confidence in the browser and lots of great quality images of past projects to sell their services and prove their experience.
Get a Website ... and your business can be on display 24 hours a day, 7 days a week, 365 days a year! To find out how ... Contact Eve ph 0800 CERTIFIED or email eve@certified.co.nz
Have you checked out our revamped website? The upgraded and revamped website reflects the new professional era. The new look and content make it clear what it means to be a Certified Builder and why the public can have confidence in our brand. Easier for the public to understand and locate a Certified builder Improved search functions Updated, modern look
Reorganised to reflect the changing environment for the building industry in New Zealand.
5
free
helplines
Contracts Employment
For help with contracts issues contact Peter Degerholm at Calderglen Associates. Phone sessions are limited to 20 minutes and written questions
Advice on any employment-related issue
must be kept brief though they
is available from specialist Tauranga law
may include relevant extracts from
firm, Employment & Environment Law.
documents.
Danny Jacobson and Trudy Marshall will assess the employment issue and give
Peter Degerholm Ph 04 587 0061 or 021 307 232 Fax 04 587 0062
Peter Degerholm
Danny Jacobson
general guidance on the best options in phone sessions of approx 5-10 minutes. It is not intended as a substitute for formal
email peter@calderglen.co.nz
employment/legal advice. You must identify yourself as a CBANZ member
Business-related legal issues
and any information you disclose will be treated with confidence.
Trudy Marshall
Ph 07 928 0529 or 021 857 529 email trudy@e2law.co.nz
For advice on business-related legal issues,
web www.e2law.co.nz
Auckland commercial law firm Madison Hardy is offering a free service to CBANZ members. It will only cost you the price of the phone call. Free advice sessions are
Geoff Hardy
limited to 20 minutes.
Insurance
Experienced lawyer, and CBANZ director Geoff Hardy and junior lawyer Gagan
For advice on any insurance-related issue
Tangri will answer your queries, during
contact Jim Rickard at CBA Insurances. If
business hours. Geoff Hardy Ph 09 379 0700 Gagan Tangri Ph 09 970 9567
you have your own broker they should be your first point of contact. However, Jim Gagan Tangri
is happy to help with any claims problems
Jim Rickard
and with any general question about what cover you should have as a builder. Ph. 07 579 6259 or 0274 505 528
General business, accounting or tax
Email jim@certified.co.nz
For general business, accounting or tax issues you can contact Steve Brocklebank of PricewaterhouseCoopers. Phone sessions are limited to 10 minutes at
Steve Brocklebank
first, and emails should be kept to the point. You must identify yourself as a CBANZ member and any information you disclose will be treated with confidence.
It’s your call!
Steve Brocklebank Ph 03 470 3615 or 027 433 6025 email steve.j.brocklebank@nz.pwc.com
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