April/May 2012 InHouse

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.

25

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?

26

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.

27

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.

32

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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