NEW ZEALAND’S MOST QUALIFIED BUILDERS
DECEMBER/JANUARY 2015
InHouse THE OFFICIAL MAGAZINE OF CERTIFIED BUILDERS ASSOCIATION OF NEW ZEALAND
MERRY CHRISTMAS PUT THOSE STOCKINGS UP THEN ITS TOOLS DOWN TEAM TO RELAX AND ENJOY THE HOLIDAYS
FIRST CERTIFIED PLANS BUILD
LARGEST SOUTH ISLAND CONFERENCE & EXPO
PAST, PRESENT AND FUTURE
PAGE 4
PAGE 16
PAGE 26
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CONTENTS
MESSAGE FROM THE CHAIR
Welcome to the last InHouse for 2014. This year seems to have flown by. Hopefully all of our members have been busy with the business of building. Judging by the reports I have read for the November Presidents meeting it looks as though most regions have seen steady increases in workloads although there are still some that are waiting for a lift in activity.
IN THIS
ISSUE
Attendances at the last round of Toolbox seminars have been fantastic with an even mix of our members, Master Builders and non-aligned builders turning up to hear what has proven to be a very significant topic.
Message from the Chair
1
From the Operations Desk
2
Certified Plans
4
Around the Regions
8
Feature: Employment Law
15
Feature: South Island Conference/Expo
16
Feature: Beacon
20
Feature: Growth Risks
22
Feature: Stolen Tools
25
Centrespread - Past, Present and Future
26
ITAB
32
Feature: ACC Data Dude
39
Feature: NZMRM
40
Feature: 2 Steps to Happiness
43
Feature: Comparing Rights
44
Association News
47
Message from the Chief
53
ITAB apprentice numbers are on the rise which is great but we still need more young people to enter the industry. Auckland house prices are also on the rise. When you consider prices in places like Huntly it seems obvious that a regular high-speed rail link south could open up a whole lot of affordable houses for first home buyers, allow people to commute to their Auckland jobs and stimulate growth in our supposedly stagnating provincial centres. Incentives for industry to relocate to these smaller towns would also give a massive boost to their local economies and take the pressure off Auckland roads which must be costing millions in unproductive time. Come on Government let’s see some innovative thinking here! Remember to prepare yourselves for the Building Law changes that come into effect on January 1 next year. As members of Certified Builders Association you will have all the necessary paperwork available to you from our website. Look on this as an opportunity to promote yourselves as great builders. I hope you are all looking forward to a fine and relaxing Christmas break with your families and come back refreshed ready to tackle what should be a big year for building in New Zealand. Happy Holidays
Contact Farming House 102 – 104 Spring Street PO Box 13405, Tauranga Central, Tauranga 3141 Phone: 07 927 7720 | Freephone: 0800 CERTIFIED Fax: 07 927 7721 | Email: editor@certified.co.nz www.certified.co.nz
Dave Brown Chairman
INHOUSE | DECEMBER/JANUARY 2015
1
ASSOCIATION NEWS: From the Operations Desk
FROM THE OPERATIONS DESK Jason McClintock – Operations Manager
Lifting the bar It has been very pleasing to see large numbers of members attending our latest round of ToolBox Seminars on Building Act changes with some suggesting “bring it on, it’s about time we had an opportunity which will allow good builders to stand out.”
Check out page 8 for some of the questions from the audience. At each of the Association’s previous Seminars for 2014 we have been preparing members for change and so it comes as no surprise non aligned tradesmen feel somewhat taken aback at the depth of the Amendment Act.
Is our industry ready for another round of change? Although pending for some time we really only got wind of the content when the cabinet paper was released this year. This has put pressure on our industry to educate and prepare building contractors with practical solutions for a roll out 1st January 2015, we will be expecting the policy writers to be better prepared with written checklists posted ready for downloading well before we all close off for the festive season.
Challenges for industry Requirements of checklists, disclosures and mandatory contracts work well when there is one main contractor directing the project. Things start to unbundle themselves when the client starts trading with suppliers and sub trades directly, the complexity of this becomes magnified when these trades fall into the default provision of contract. The trigger for these default provisions can occur in several ways • The sub contractor simply wishes not to engage a building contract [value over $30,000] • Gets caught by the value of work creeping over the $30,000 threshold during the course of their project.
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INHOUSE | DECEMBER/JANUARY 2015
Who is supporting you through change? Apart from ITM I have been surprised how uninformed suppliers have been and how little thought has gone into how they can support their building contractors. Some of these suppliers have published articles on the Building Amendment Act yet obviously have not stopped to think how they will be backing you through this change. Dam right suppliers have a role to play here, both in the warranties requirements and 12 months defects period. Talk with your sub contractor and suppliers as to how they will manage call backs and product enquiry 10, 11, 12 months down the line. If they are shy coming forward or cannot give you assurance they will be in it for the long haul, then I suggest start shopping elsewhere.
Seminar follow-up booklet The Association has produced a booklet which summarises the changes in line with what was presented at these ToolBox Seminars. It includes a useful compliance tree which shows what compliance documents need to go across to the client and the trigger for when this should happen. All members who signed the attendance register on the night will receive a printed copy in the post. If you were unable to attend this Seminar the booklet is available to view in the knowledge section of the members website.
Industry first As this issue was going to print the Association was putting together New Zealand’s first “client pack” of Building Amendment Act requirements. Hamish of Galloway Builders Limited in Whakatane has graciously allowed us to use him as our crash test dummy. With what we know to date we have created...
ASSOCIATION NEWS: From the Operations Desk If your suppliers are not behind you for the long haul, start shopping elsewhere
A presentation pack [pre contract stage] • Checklist • A Disclosure which includes Galloway Builders Limited point of difference and the benefits he can offer by belonging to Certified Builders Association
A contract pack [construction stage] • A building contract from the website branded with Galloway Builders Limited, this will also include variation forms and compliant payment claims under the Construction Contracts Act
Contract completion pack [post construction phase] • Warranties and Guarantee requirements
In the New Year keep an eye on the members section of the website for your template client pack.
Final word Most importantly take time with family and friends over the festive period, for many members it has been a busy and stressful end of year. Don’t forget to secure sites, and tie down supplies which might go for a walk or become air borne in wild weather; ensure site run off won’t affect neighbouring properties. I look forward to another busy year ahead lifting Certified Builders Association to new heights and assisting members through increasing levels of compliance and challenges facing our industry.
• Job specific Maintenance Schedule • Supporting information on defects
PLEASE NOTE: Online Contracts & hardcopy Contracts will not be available due to updates needing to be made to the contracts to ensure they comply with the new regulations. Certified Builders are on the pulse of these changes and will be working to update all of our building contracts as soon as we can.
Be your own
Secret Santa
Purchase Any Pink® Batts® products Between December 2014 - January 2015 and receive:
Small Haier HBF-55W-50L
Glass Door Haier HWC-22BW-110L
+See Carters’ December 2014 Trade Offers mailer for the Terms and Conditions.
CBB2083 CBANZ Ad December 2014 v10.indd 1
19/11/14 2:57 pm
INHOUSE | DECEMBER/JANUARY 2015
3
ASSOCIATION NEWS
FIRST CERTIFIED PLANS BUILD Congratulations Zach Jeffries, ZJ Builders for getting the “FIRST” Certified plan build underway. Council Consent has been granted and the “Kakapo” is being built in Tauranga. We look forward to providing you with regular progress reports. To help promote his business Zach has branded his ute with Certified Plans imagery - it looks fantastic!
www.certifiedplans.co.nz
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INHOUSE | DECEMBER/JANUARY 2015
PROJECT MANAGEMENT SOFTWARE Feedback continues to be positive about the Project Management software from ACD Architecture and we have noted members are not only using this service for Certified Plans they are also taking along their own new and renovation plans and having great results.
NEW MEMBER! Welcome Jeffrey Turner, Jaffa Built Ltd, Orewa.
BEHIND THE SCENES... WEBSITE OPTIMISATION FOR MOBILE DEVICES As a result of a successful two month online campaign and feedback from a number of members we are now optimising the Certified Plans website for tablets and mobile devices. Whilst the new optimised site may not work for all hand held devices it will work for the vast majority and we envisage this increasing our online traffic considerably.
MAGAZINE PROMOTION Further promotion of Certified Plans to the Home Owner prior to Christmas will be seen in the following magazines; Homestyle, Auckland City Summer/Autumn Home Owners Building Guide & Your Home and Garden. As a result we look forward to this creating more leads and enquiries and these being converted into sales by our Certified Plans members.
If you are unsure how to progress your sales enquiries for Certified Plans please view the Sales Process Manual which has now been distributed to all Certified Plans members. If you have not yet received your copy via post please contact julie@certified.co.nz
WHAT WILL 2015 BRING FOR CERTIFIED PLANS? In the second quarter of next year we will be reviewing the current suite of Certified Plans. We will be taking into consideration which plans have been popular and those least popular then adjusting the range accordingly - all feedback is welcome. We will also be looking at further support material for your Tool Box enabling members to provide Best Practice in as many ways as possible.
GOOD BUILDERS.
GREAT BUILDERS.
Certified Builders are no ordinary builders. Guaranteed to be trade qualified our members are experienced, professional and reliable craftsmen. We can start with one of our architecturally designed house plans, work with your existing plans or help you develop your ideas from scratch. We also offer the best guarantee in the industry - the independent ten-year Homefirst Builder’s Guarantee.
To find your local Certified Builder visit www.certified.co.nz or call us today on 0800 237 843 WAVE21643
HOW TO TURN ENQUIRIES & LEADS INTO SALES....
CBI21643 CONSUMER Brand Ad Builder with Plan (210x275mm).indd 1
22/10/14 2:27 pm
AGREEMENT FORM Keep those signed Terms of Use Agreements coming ! Email them to julie@certified.co.nz
For further information contact Julie at National Support Office: julie@certified.co.nz 0800 237 843 www.certifiedplans.co.nz
INHOUSE | DECEMBER/JANUARY 2015
5
ASSOCIATION NEWS: 2015 Dawns New Change
2015 DAWNS NEW CHANGE...
WHEN ENGAGING WITH A CLIENT IN RESIDENTIAL WORK. Certified Builders in conjunction with Ministry of Business, Innovation and Employment has covered North, South, East and West delivering education on the Building Amendment Act which comes into play 1 January 2015. We covered off the compliance documents for the three phases of pre contract, contract and contract completion. We now have an understanding of when these have to be presented to the client - what we have yet to cover off is the content and how to fill in these compliance documents. For our ToolBox Seminar Series in February through to April we are proposing to work through the content and opportunities of checklists and disclosures to showcase your company’s point of difference. This is also a good opportunity to work through the gearing within our building contracts which make them builder friendly. The Association will also explain our new variation form which has been expanded beyond the use of a standard form; this is in line with best practice under the Building Amendment Act and encourages payment even under a Cost & Margin contract.
notification, it now makes good sense for the Association to include this into the New Year Seminar. These three documents are all geared to ensure you get paid. Later in 2015 changes in Health and Safety will affect both big and small business operators. Starting at a high level of company directorship the changes impact all the way down to employees and sub trades in the work place. It is important these changes are understood and implemented before April 2015. Replacing the existing Health and Safety in Employment Act 1992 new legislation encourages a wider engagement by all on site with greater emphasis on those who have opportunity to influence safety and the culture of safety. The message with Fall from Heights was to take all practicable steps, this too has been given a massage and takes on a slightly new form. To ensure you’re up to speed I invite you to join us in 2015 when we will be back in a town near you.
There still appears to be little understanding on what makes a valid payment claim, tag teaming contracts and a variation
NORTH ISLAND ROUND UP: Interest in our North Island Seminars has been outstanding, packing venues up and down the country. A big thank you to ITM who have played a notable role attracting numbers, to the point we have had to add venues to keep up with demand.
Use of a building contract will now be considered best practice and expected of our membership.
There has been robust discussions, and thoughtful questioning as building contractors apply theoretical regulation to practical and real situations. Let’s have a look at some of the questions from the regions.
Answer - The Amendment Act changes do not affect the main to sub contract arrangement, therefore these terms of trade fall under the terms of agreement in the sub contract.
Question - “The $30,000 threshold for mandatory contracts is this based on the project value or each contracts value of work?”
Question - “It can be quite difficult to obtain warranty information of products, if the supplier [merchant] does not pass this on, is the builder expected to go hunting these down?”
Answer - The threshold is based on each building contractors value of contract, this is based on all work done in relation to the building work, this means the value of work cannot be broken up to avoid the threshold amount.
Answer - Essentially yes however Certified Builders is working with a specifications provider, so the warranty requirements can be accessed through the members section of the Association’s website.
Question - “If work starts below the $30,000 threshold but through variations and uncontrollable cost then goes over this, how is a building contract introduced at this point?”
Thank you to Buster and James for their efforts and long sessions on the road, I would also like to acknowledge the support from ITM and the input from ITM store managers and staff at these events.
Answer - At the time of going to print there has not been any guidance on this, this is why the Association recommends using a building contract for all work. 6
Question - “With the defects period spanning out to 12 months the head contractor is now advising he is holding my retentions out to 12 months is this legal?”
INHOUSE | DECEMBER/JANUARY 2015
Regards Jason McClintock
ASSOCIATION NEWS: From the Desk for 2015: Find a ToolBox Seminar inOperations your region NORTH ISLAND
ADATE presentation pack [pre contract stage] DAY
CITY
• Checklist FEBRUARY • Disclosure Builders Limited 09A February 2015 which includes Galloway Monday point of difference and the benefits he can offer by 10 February 2015 Tuesday belonging to Certified Builders Association 16 February 2015
Monday
A23contract pack [construction stage]Monday February 2015
• building 24A February 2015contract from the website branded Tuesday with Galloway Builders Limited, this will also include variation MARCH forms and compliant payment claims under the Contracts Act 02Construction March 2015 Monday 03 March 2015
Tuesday
10 March 2015
Tuesday
16 March 2015
Monday
Contract completion pack [post construction phase] • Warranties and Guarantee requirements • Job specific Maintenance Schedule 17 March 2015
• 24Supporting information on defects March 2015
Tuesday Tuesday
Whakatane Rotorua In the New Year keep an eye on the members section of the
website for your template client pack. Te Awamutu
Final word
Auckland (Orewa/Whangaparoa) Wellsford
Most importantly take time with family and friends over the festive period, for many members it has been a busy and stressful end ofTaupo year. Don’t forget to secure sites, and tie down supplies which might go for a walk or become Waikato air borne in wild weather; ensure site run off won’t affect Tauranga neighbouring properties. Gisbornebusy year ahead lifting Certified I look forward to another Builders AssociationNapier to new heights and assisting members through increasing Auckland levels of(Northcote) compliance and challenges facing our industry.
25 March 2015
Wednesday
Auckland (Remuera)
30 March 2015
Monday
Waiheke Island
31 March 2015
Tuesday
Whangarei
01 April 2015
Wednesday
KeriKeri
13 April 2015
Monday
Manawatu
APRIL
14 April 2015
Tuesday
Wairarapa
15 April 2015
Wednesday
Taranaki
SOUTH ISLAND DATE
DAY
CITY
FEBRUARY 10 February 2015
Tuesday
Greymouth
11 February 2015
Wednesday
Westport
16 February 2015
Monday
Timaru
17 February 2015
Tuesday
Oamaru
23 February 2015
Monday
Geraldine
24 February 2015
Tuesday
Christchurch
MARCH 03 March 2015
Tuesday
Wanaka
04 March 2015
Wednesday
Queenstown
09 March 2015
Monday
Blenheim
10 March 2015
Tuesday
Nelson
11 March 2015
Wednesday
Christchurch (Rangiora)
18 March 2015
Wednesday
Cromwell
19 March 2015
Thursday
Dunedin
24 March 2015
Tuesday
Wellington
25 March 2015
Wednesday
Paraparaumu
31 March 2015
Tuesday
Winton
Wednesday
Invercargill
APRIL 01 April 2015
INHOUSE | DECEMBER/JANUARY 2015
7
Around the regions
BUILD NELSON
TRADE
SHOW Build Nelson Trade Show was held on 18 September with one of the largest turnouts of builders we have had since the first show in 2006. With the help of ITM Nelson, the organisers were able to secure a wide range of exhibitors, resulting in the most successful Build Nelson to date. Operating from a provincial town, local builders don’t often get the opportunity to see such a large variety of products and services in one location. Exhibitors comment that restricting the invitations to the building trade only, means that those who come through the doors are people who are pro active about gaining knowledge of product and service developments within the building industry. Exhibitors are
delighted with the quality of the audience and being able to see so many builders in one venue is cost effective for those companies. Certified Builders Association Nelson Committee are grateful to the merchants who have supported Build Nelson from its inception; Carters, ITM, Mitre 10 Trade and PlaceMakers support the event by promoting to their builders. The Committee agree the concept makes a positive contribution to the building industry in the Nelson Bays region and with the kind of positive feedback from merchants, builders and exhibitors, they will continue to host this valuable show case in years to come.
CLAREVILLE A&P SHOW The Clareville A&P Show was held on the weekend of 6th & 7th of November. CB Wairarapa set up a stand to display the range of plans and certified builders available in the Wairarapa. The weather was good apart from the wind which made us take down our pergola for Sunday. We had several people come and have a chat about what we can
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INHOUSE | DECEMBER/JANUARY 2015
provide and look through the plan range, so hopefully there will be a Certified house being built in the Wairarapa soon! We decided next year we could do something bigger and better to attract the crowd, so watch this space.
Platinum sponsors Hilti
OTAGO INAUGURAL GOLF DAY With a bit of careful planning and a huge amount of effort and goodwill alike, we pulled off the inaugural charity golf day for the Otago region on 17 October 2014. It was a fantastic day, enjoyed by all, topped off with us raising a great donation for the Otago Helicopter Trust and the ITABS Apprenticeship and Scholarship Trust.
Sacha Gray, Jared Copland, Ronny Rawstan and Grant Smith
Evening function
Hilti came on board as platinum sponsors and were joined by local suppliers and businesses who donated some fantastic prizes and items for our charity auction. A helping hand from DB Breweries meant the beer was flowing right from the start. The weather held until all but a couple of teams were finished so we had some great golfing. Afterwards, dinner at the club house, a healthy round of raffles and an entertaining auction ensured the guys were digging deep into their pockets for good causes. We finished the evening off with prize giving, and it didn’t escape us that the winning team was made up of local roofing contractors and a Master Builder, our guys will need to spend the next 12 months honing their golf skills so we get it next time. All in all the day was a huge success, and there is a blue print to build from for future years. On a final note, I would like to say thank you for the encouragement and support we had from National Support Office and Buster, and to Dave Brown for coming all the way down South to brave the cold and show his support. It was also wonderful to have the Otago Daily Times covering the event for us and featuring us in the press. Cheers Andrew McGeady Otago President
Dave Brown and Ross Lunn
Day gets under way with a big swing
INHOUSE | DECEMBER/JANUARY 2015
9
Around the regions
WELLINGTON
GOLF DAY The inaugural Wellington golf day had a rough start with horizontal rain and 120km hour winds at 7am. The phone was running hot but the weather was not going to stop us. Luckily by tee-off at 12pm the rain had gone and the wind had settled. There was a good turnout from our members and positive support from Wellington Associate members. With each of the 18 holes having a sponsor, players had no shortage of activities, food and drink as they sliced, hit, and wacked their way around the course. Everyone went home with a bag of goodies that included a branded polo shirt to commemorate the day. We were fortunate to have our Chairman of the Board Dave Brown attend and I’m sure he had an enjoyable day driving around in a golf cart meeting the builders. We had prizes galore thanks to the generosity of our sponsors - there was an impromptu auction which ended up raising just over $3,000.00 for the AST Trust. With all the positive feedback it is going to be an event on the calendar next year.
10 INHOUSE | DECEMBER/JANUARY 2015
GISBORNE CERTIFIED BUILDERS
AT THE
A&P
SPRING SHOW Certified Builders Association in Gisborne recently held their first public stand at the A&P Spring Show. This was all in aid of promoting our Association and our latest offering, Certified Plans as well as making the general public aware of who we are. We had a fair bit of interest with the plans and now are waiting upon the calls. It was interesting to see which plans were favoured the most and noting there was a lot of interest from visitors out of town looking at building. The giant block stack game was good fun and drew the crowds from all ages and “Guess the Length and Angle of Timber” to win a tool kit was another goodie. The prize was even won by one of our local electricians – Jammy Fella! The stress balls were good also but we don’t really need them in our relaxed part of New Zealand You should all come and visit us sometime and check the region out! Many thanks to Jason McClintock, National Support Office and our local members for supporting this show and we are looking forward to doing it again next year - “Bigger and Better” Brendan Fry Gisborne President
INHOUSE | DECEMBER/JANUARY 2015 11
ourselves at work? CARPENTERS & JOINERS
Who’s getting hurt in NUMBER OF INJURY COST TO BUSINESS FOR INJURY IN 2012: the Canterbury Rebuild?CLAIMS IN 2012:
TOTAL DAYS LOST TO INJURY IN 2012:
686,235
$135m +
COST OF INJURY CLAIMS TO ACC IN 2012:
11,423
$28m +
HOW WE’RE HURTING OURSELVES
HAND / WRIST
INJURY COST: $1,378,979 DAYS LOST: 44,082 “Another builder was shooting a We’re hungover. nail2in place, he slipped, and nail There’s no place shot into my hand. ” for drugs or
INJURY COST: It’s getting towards the end of$192,781 the year; you’ve been doing long DAYS LOST: 4,356 hours; some of us aren’t getting enough rest or sleep to properly “Cuttingrecover. steel and a bit of steel/spark flew into eyeFatigue despite is a wearing risk on site.safety goggles” To avoid fatigue, get plenty of sleep and take regular breaks. INJURY CLAIMS: 1,417 INJURY COST: $4,648,791 DAYS LOST: 105,711 “Lifting 15kg purlin onto roof, shoulder ‘popped’ out.”
Alert!
alcohol on site. As summer and holidays approach, it’s easy to get into the habit of having a few beers INJURYafter CLAIMS: work. 2,340 it moderate guys. Don’t let INJURYKeep COST: $1,125,252 the rest of the team down!
DAYS LOST: 24,331
“Drilling wood and misjudged where the drill bit was, drilled left middle finger, causing puncture wound.” TOP 5 INJURY SITES 1. Lower back/Spine INJURY CLAIMS: 1,260 2. Finger/Thumb INJURY COST: $1,739,595 3. Hand/Wrist DAYS LOST: 25,017 4. Eye 5. Knee down off ladder, caught “Climbing foot on last rung, tripped and landed heavily on right knee.”
We’ve noticed a drop in the use of PPE lately. INJURY CLAIMS: 3,239 Remember PPE is worn at all INJURY COST: $5,239,923 times by everyone. NO exceptions. NO excuses
DAYS LOST: 152,440
“Lifting sheets of iron onto roof. Wind picked up, twisted my back.”
4
LOWER BACK/ SPINE
FINGER/THUMB
» If you’re using a ladder, make sure it’s secured top and bottom & on level ground. Don’t lean off INJURY CLAIMS: the side and 1,413 never go higher than the 3rd rung from the top.
3 We’reINJURY tired.CLAIMS: 1,566
SHOULDER/ CLAVICLE
KNEE
INJURY CLAIMS:from 2,845 height. 1 Falling INJURYEarlier COST: this$1,476,711 month, a labourer working on a residential site in east Christchurch fell DAYS LOST: 0 4 metres. He suffered critical injuries. “WorkedDon’t as aletjoiner with tonoisy this happen you. machinery you’reuntil working at height: from ageIf16yrs nearly 65. Wore hearing » Check there’s protection protection for last tenedge years on the job.” in place.
EYE
EAR
Where it’s hurting us
TOP 5 INJURY SITES BY NUMBER 1) Lower back/Spine OCCUPATIONS WITH BIGGEST 2) Finger/Thumb INCREASE 3) Eye IN CLAIMS 4) Hand/Wrist 1. Carpenters & Joiners 5) Shoulder/Claivicle 2. Electricians TOP 5 INJURY SITES BY COST 3. Plumbers 1) Lower 4. Heavy truckback/Spine drivers 2) Shoulder/Claivicle 3) Knee 4) Ear 5) Hand/Wrist
This month’s stats...
How we calculated this information (using 2012 data)
RESIDENTIAL Cost of Injury CARPENTERS AVERAGE COST OF OF Injury Claims Claims to Business & The total cost to business is based on the average salary of JOINERS HAD THE BUILDING EACHThese CLAIM CONSTRUCTION The total includes the cost (excl GST) to ACC of all treatment are activeIS claims that generated a payment in theSECTOR carpenters and joiners (derived from Dept of Labour statistics) and entitlements incurred for that claim except the cost of period. These claims were not necessarily lodged, or had the RECORDED THE by the number BIGGEST AROUND: RELATED CLAIMS: of working days INCREASE in 2012, this was used to emergency treatment at public hospitals. Treatment provided accident occur, in the same period. Active claims also include calculate the average daily salary for the occupation. The IN CLAIMS NUMBER by Public Health Acute Services (PHAS) is bulk funded and all new claims in that period. Claims HIGHEST which only received bulk of days of productivity lost to injury was multiplied by costs are not allocated to individual claims. funded hospital services are not included. OF CLAIMS [120] number this figure to identify the cost of injury claims to business. NUMBER Cost of InjuryTOTAL Claims to ACC
480
12 INHOUSE | DECEMBER/JANUARY 2015
$2000
Data from ACC shows how we’re getting injured in the construction sector. This month, almost 500 people were injured on construction sites in Canterbury. Carpenters and joiners had the biggest increase in claims; electricians, plumbers and people using earthmoving and related machinery are also on the increase. Two of the biggest things currently affecting our injury rates:
1
We’re tired. It’s getting towards the end of the year; we’ve been working hard all year and some of us haven’t been getting enough rest or sleep to recover properly. What is fatigue? The signs include being constantly tired; lacking energy; excessive yawning; bad moods or headaches. Fatigue is a risk in construction. We all have a responsibility to manage fatigue.
2
As your employer, I have to do everything possible to keep you safe at work. I can do this by scheduling rest breaks; making sure you’re not working really long hours; providing areas on site for you to rest (like the smoko shed); making sure machinery is well maintained and in good working order. As an employee, you have to turn up in a fit state for work; you have to tell me or a manager on site if you don’t feel up to a particular work task - for whatever reason; and you must report fatiguerelated incidents or near misses.
How you can minimise fatigue: Sleep! Between 7.5 and 9 hours – every night. Drink plenty of water throughout the day. Don’t skip your breaks Get a life! Have things you look forward to outside of work – family, friends, sports, gigs, whatever it takes to switch off from work. If you’re buggered, don’t bugger it up for everyone else. If you feel tired or exhausted, tell someone – we need to manage all risks on this site; we’re not going to judge or punish you for being honest.
We’re hungover. Summer’s coming. Barbecues are cranking up. And you guys deserve a beer. But we all have to remember: there’s no place for drugs or alcohol on site. If you come to work under the weather because you’ve been drinking or smoking up the night before, you’re putting yourself at risk -and you’re putting the rest of us at risk too. That’s not OK.
We’re not here to kill your party, but during the week, if you’re having a few beers after work (or whatever you do to ‘relax’), do it in moderation. Don’t go on a binge and if you do, don’t come to work tomorrow. It’s as simple as that You guys are important to us. We’ll do our best to keep you safe on site; what happens outside of work is up to you.
We’re tired
We’re hungover
What are the signs of fatigue?
Is it OK to come to work hungover?
As your employer, what do I have to do to minimise the risk of fatigue?
If you’re hungover, what should you do?
What can you do to minimise fatigue?
INHOUSE | DECEMBER/JANUARY 2015 13
6 FREE Help Line Services For all members 1. Contracts
4. Insurance
PETER DEGERHOLM Contract issues? Call Peter for a free 20 minute session. Ph: 04 587 0061 Mob: 021 307 232 Fax: 04 587 0062 Email: peter@calderglen.co.nz
JIM RICKARD Insurance issues? Call Jim at CBA insurances. Ph: 07 579 6259 Mob: 0274 505 528 Email: jim@certified.co.nz
2. Business Legal Issues
5. Employment
GEOFF HARDY For advice on business-related legal issues, call Geoff for a free 20 minute session. 8:30am-5.00pm Mon-Fri Ph: 09 379 0700 or junior lawyer Anastasiya Gutorova Ph: 09 970 9568
DANNY JACOBSON TRUDY MARSHALL For advice on employment related issues, call for a free 10 minute session. Ph: 07 928 0529 Mob: 021 857 529 Email: trudy@e2law.co.nz
3. General Business Accounting or Tax STEVE BROCKLEBANK For general business, accounting or tax issues you can contact Steve Brocklebank of PricewaterhouseCoopers. You must identify yourself as a CBANZ member and any information you disclose will be treated with confidence. Call Steve Ph: 03 470 3615
14 INHOUSE | DECEMBER/JANUARY 2015
6. Health & Safety GREG WATTS For advice on any health and safety issues, call Greg for a free 30 minute session. Ph: 0800 555 339 Email: info@hazardco.com
FEATURE: Employment and Environment Law
Employment Q&A The below content is by its nature general, and is not intended to be a substitute for legal advice.
MINIMUM WAGE DEVELOPMENTS In this column we cover case law developments interpreting our minimum wage legislation. It has been a longstanding practice in the agricultural and horticultural industries to pay salaries and average out an employee’s pay over a season. This has been intended to provide salaried employees with a consistent regular salary payment even though they may work long hours during busy or peak periods, and shorter hours during quiet periods. However, this practice may well breach the minimum wage rates, particularly for those employees earning lower salaries. In an Employment Relations Authority case involving a farmworker, the Authority found that the employer could not lawfully offset the payments for the shorter hours worked during the dry season (which effectively resulted in the employee being overpaid for actual hours worked) against the longer hours worked during the busy season (when the employee did not actually receive the minimum wage for all actual hours worked). This interpretation was consistent with previous Employment Court cases about the Minimum Wage Act applying to salaried employees and finding that averaging was not lawful.
So even in industries where there are seasonal variations in hours, employers must pay employees at least the minimum wage for every hour actually worked and a salary or wage cannot be averaged over a season. From 26 June 2014, the minimum wage legislation has included a fortnightly minimum in addition to the hourly, piecework, daily or weekly amounts already included. To an extent this does make it possible to offset payments for work in one week against payments for the following week. As a result of these legal developments, much greater attention is now required to the drafting of hours of work and remuneration clauses in employment agreements. We recommend that if you do have employees who work fluctuating hours and who are not paid on an actual hours worked basis, you review your existing employment agreement clauses and current practice to ensure that you are complying with the minimum wage legislation, and at the same time creating as much flexibility as is possible to effectively operate your business.
Danny Jacobson and Trudy Marshall are Partners at Employment & Environment Law, Barristers and Solicitors, Tauranga. They operate our Employment Helpline for CBANZ members : phone 07 928 0529. They have also previously produced a Guide for Employers in the Construction Industry which CBANZ can send out to any members on request.
INHOUSE | DECEMBER/JANUARY 2015 15
Still New Zealand’s Most Qualified Builders 17th Annual Certified Builders Conference & Expo Horncastle Arena – Christchurch 21st to 23rd May 2015 Conference preparations are coming along nicely for the largest Certified Builders Conference & Expo ever seen in the South Island. • 63 exciting & varied trade stands • Factory Tour – taking in the manufacturing processes of:
• Calder Stewart Roofing & Precast
• Allied Concrete
• Winstone Wallboards
• And a guided tour through the Red Zone Rebuild
• The Great Apprentice Race & NZ Carpentry Finalists • 2x motivational & inspirational keynote speakers • 16x educational workshops • Friday evening mingler at the races • Gala dinner at the NZ Air Force Museum • Optional Sunday Tours • Partner’s Excursions • Happy Hours • And much much much more… 16 INHOUSE | DECEMBER/JANUARY 2015
Accommodation info: Rydges Latimer 4.5 star: Our luxury hotel accommodation in Christchurch overlooks scenic Latimer Square, an iconic New Zealand green space with ample room for travellers to roam and enjoy the shade of lush, broad-leaved trees. The hotel has undergone a complete rebuild so that guests experience top-ofthe-line features and amenities, all 100 percent compliant with the latest building code requirements. Room
Rate
Breakfast
Superior King/Twin Superior King/Twin
$218 incl GST $243 incl GST
Breakfast for 1 Breakfast for 2
To book - quote booking/promo code R-150521CERT Call - 0800 176 176 Website - http://www.rydges.com/accommodation/new-zealand/ latimer-christchurch/welcome/
Novotel Christchurch Cathedral Square 4+ star: Is a modern hotel tower with up to date connectivity and services, in contemporary style with all the facilities you would expect from a 4+ star hotel. As well as being perfectly located in the heart of Cathedral Square, the hotel is central to the developing business district, shopping precincts and entertainment options. Room
Rate
Breakfast
Superior King/Twin Superior King/Twin
$205 incl GST $225 incl GST
Breakfast for 1 Breakfast for 2
Bookings can also be made by calling our Reservations team on 03 372 2111 and 03 367 8666 or via email h6592-re1@accor.com. Booking code - CHCBB Or go to the members website and book online using the online booking tool.
Chateau On The Park 4 star: Is a luxurious 4-star hotel conveniently located near the centre of Christchurch. Local places of interest include Mona Vale, Hagley Park and Botanic Gardens (Christchurch). Other points of interest are Riccarton House, Christ’s College and Canterbury Museum. Room
Rate
Breakfast
Premier King/Twin Premier King/Twin
$165 incl GST $182.50 incl GST
Breakfast for 1 Breakfast for 2
To book - quote booking/promo code CB 2105 Call - 0800 608 989 Email - res@chateau-park.co.nz Web - www.chateau-park.co.nz
INHOUSE | DECEMBER/JANUARY 2015 17
Accommodation info: ibis Christchurch: is located nearby to the new shopping heart of Christchurch, Cashel Mall. The Re:START shopping precinct is the new vibrant heart of the city, featuring many new designer shops and modern cafes. ibis Hotel Christchurch is very close to the famous Cathedral Square, the historic heart of the city providing easy access to the outer lying attractions and the airport. Room
Rate
Breakfast
Standard King/Twin Standard King/Twin
$160 incl GST $180.00 incl GST
Breakfast for 1 Breakfast for 2
Bookings can also be made by calling our Reservations team on 03 372 2111 and 03 367 8666 or via email h6592-re1@accor.com. Booking code: CHCBB or go to the members website and book online using the online booking tool.
Delegate registrations will open early next year – keep an eye on your inbox! If you have any questions please contact Eve on 07 557 9215 or eve@certified.co.nz.
See you next year!
18 INHOUSE | DECEMBER/JANUARY 2015
ASSOCIATION NEWS: Unnecessary Rules
UNNECESSARY RULES RELATING TO PROPERTY?
It is inhumane, in my opinion, to force people who have a genuine medical need for coffee to wait in line behind people who apparently view it as some kind of recreational activity.
Stop Press! - Urgent Reminder It is illegal under the Building Act to hold back a completed Record Of Works as a way of gaining any outstanding payment or monies. There has been some thinking in the industry that this is a legal and common practice. It is very clear that some sections in the Building Act do override sections of any Building Contract that you may have in place.
MOBILE SCAFFOLD TOWER
AJJA 5000 SERIES
New Zealands Most Affordable 5.0mtr Scaffold Tower.
HAVE YOU SEEN OR EXPERIENCED RULES AND REGULATIONS ON PROPERTY THAT JUST DON’T MAKE SENSE? The Government have recently launched a taskforce that are to look at identifying pedantic and unnecessary rules that frustrate builders, trades people, property owners and businesses and hinder their day to day operations. Well now - you have a chance to have your say and inform the taskforce of the regulations and rules that you find pedantic and unnecessary.... You can do this by any one of 3 ways: Online submissions can be made at: www.govt.nz/rulesreduction By email to: rulesreduction@dia.govt.nz
Frames . Built from 2.0mm 6061 T6 aluminium . Fully welded for maximum strength & Lifetime guarantee on welding
Platforms all aluminium frames complete with anti slip plywood
. 400mm transom centres . Integral ladders built into the end frame for safe access
Or post to: Rules Reduction The Department of Internal Affairs PO Box 805 Wellington 6011 In addition the Association would be interested to hear your views so that we may be able to add our weight to the pedantic rules that you have identified...
. Complies to Australian & New Zealand Standard AS.NZS1576:1995
Braces are self locking Colour coded for easy I.D.
Contact Millie Ward at National Support Office at Millie@certified.co.nz or 0800 237 843
$3695.00 inc Tough, adjustable 200mm castors with brake
Ph 0800 360 009
INHOUSE | DECEMBER/JANUARY 2015 19
Peter and Debbie with their new double glazed windows
Thinking beyond rennovation By Lois Easton, Beacon Pathway Inc Taking advantage of earthquake repairs to make Canterbury homes warmer, drier and cheaper to run is what a new Build Back Smarter service is all about. The Mt Pleasant home of Peter and Debbie is great example of the benefits of thinking beyond repair; it was transformed from a draughty 1918 bungalow to a warm oasis as part of a Build Back Smarter pilot case study. And your clients could benefit from similar improvements included with other renovations. Peter and Debbie bought their house just before the earthquakes. Bad timing, sadly, as their house suffered significant foundation damage with ground movement causing the ring foundation and piles to settle unevenly, and voids formed underneath the concrete slab of their extension. Added to that, the roof cladding, window joinery, and tongue and groove flooring were damaged and most interior lath and plaster ceiling and wall linings were badly cracked. Peter and Debbie’s insurer, IAG, and their Project Management Office, Hawkins, undertook extensive earthquake repairs including replacing the floor piles, roof, ceiling linings and wall linings, and redecorating completely inside and out. Such extensive repair provided a huge opportunity to make a difference to this old bungalow – this is the crux of building back smarter. While the ceiling linings were replaced, the old thin (less than 70mm) insulation in the ceilings was topped up with R3.2 insulation, and a previously inaccessible skillion roof space was insulated with R1.8 insulation. Raising the house to replace the piles meant that access was possible to install R1.6 underfloor insulation.
20 INHOUSE | DECEMBER/JANUARY 2015
As an older house, there was no insulation or building wrap in the walls. With linings removed, R2.8 wall insulation was added with building wrap segments inserted between the frames. The damaged windows were upgraded to new double glazed units with uPVC window frames. Taking advantage of the extensive ceiling work, an old gas effect heater which had proved too expensive to run, was replaced with a freestanding low emission wood burner, and a heat transfer system was added. An old ineffective bathroom extract fan was replaced with a new externally vented extract fan. It was also the perfect time to address the 33 downlights in the house. These were not only letting heat into the roof space, they had been a fire hazard with both old macerated paper and fibreglass insulation covering them. As the homeowners were keen to keep their downlights, they were replaced with efficient LED and IC rated downlights. To top off these upgrades, high flow showerheads and taps were replaced by water efficient models, two dual flush toilets were installed and a 1000 litre rainwater tank was included to give the household water during future droughts or disasters. Better rating The impact of these upgrades was immediately clear using the Homestar™ online assessment. The house went from 2 stars up to 5 stars.
FEATURE: Beacon Pathway Better living Peter and Debbie are thrilled with the difference the upgrades have made to their home. “We come home and the house is warm. Even the rooms at the back of the house are as toasty as the living room. Debbie had new curtains made and installed for the whole house but we never need to draw the curtains as the double glazing is so efficient,” says Peter. Even with the cooler months they find they don’t have to get the wood burner or heat pump up and running until 8pm, saving significantly on their power bills and the cost of fire wood. Peter’s office is on the southern side of the house and, being an asthmatic, he found the cold space affected his health. With heat transferred from the living area, he says his office is now as “toasty” as the rest of the home. The wall, ceiling and floor insulation combined with the double glazing has totally changed the feel of their home. “The house feels more peaceful and you can feel the warmth as soon as you walk in the door. Everyone should be thinking of upgrading their homes when they’re having their earthquake repairs done – it just makes sense and we are very grateful to have taken part in this trial for Build Back Smarter,” says Peter. Help your clients too You can help your clients build back smarter too. Any renovation which involves disruption to ceiling linings, floors or walls has the potential to make the home warmer, drier and more efficient. Consider recommending the following upgrades to your clients:
If you are replacing ceiling linings or roof cladding or adding extensions
• Add or top up ceiling insulation • Remove downlights or replace with LED IC-rated downlights • Include a heat transfer system if the main heater is a wood or pellet burner • Install bathroom and kitchen extract ventilation (externally vented)
If you are replacing wall linings or adding extensions
• Add or upgrade wall insulation • Add building wrap
If you are replacing flooring, adding extensions or working in under-floor areas
• A dd or upgrade under-floor insulation • Add a ground moisture barrier under suspended floors • Improve drainage around and under the house
If you are installing new windows or adding extensions
• U pgrade to more efficient double-glazing, using low-e and argon-filled glass • Reduce window size on the south and west of the house
New service in Canterbury If you are in Canterbury, your clients may benefit from Christchurch City Council’s new free Build Back Smarter service. A qualified assessor will create a Healthy Home Improvement Plan tailored to a homeowner’s needs and budgets. http://www.ccc.govt.nz/homeliving/ sustainableliving/buildbacksmarter.aspx
Insulation and building paper was added to the walls while cracked linings were replaced.
Beacon Pathway is an Incorporated Society committed to transforming New Zealand’s homes and neighbourhoods through research and demonstration projects that show how to make homes more resource efficient, healthier to live in, adaptable, resilient and affordable. For further information about Beacon Pathway visit: www.beaconpathway.co.nz
INHOUSE | DECEMBER/JANUARY 2015 21
FEATURE: Avoid the risks of growth! Crowe Horwath is one of NZ’s leading business advisory and accounting firms to the NZ Construction sector, with 23 offices across the country. The author, Tracy McElroy, is ex-owner of a London-based Kiwi construction firm and is a member of the Crowe Horwath Business Performance Team. For more information contact your local Crowe Horwath office on 0800 494569 or go to www.crowehorwath.co.nz
Avoid the risks of growth! Have you planned for growth? Do you know your cash requirement and where it will come from? Are you getting good business and financial advice? Market indicators tell us we are in a building boom but you may not realise that fast growth is one of the biggest risks to your construction business. Media reports of one in five businesses failing paints a dismal picture, so why do businesses fail and what can you do to be one of the successful ones? On the surface, the reason businesses go broke is because they run out of cash, but you can avoid this happening in your business.
Reason no. 1: Lack of Planning Not bothering to plan at all or an ill-formed plan are key issues. If you are going to provide enough cash to manage the ups and downs of your business, you need to plan. • What is your vision for your business? What infrastructure (systems, people, management processes) will you need in place to help you move from where you are now, to your vision? • What will be your source of funding to achieve your vision? Funding comes from three main areas - your personal equity, investment from other shareholders and short term and long term bank funding. Investors and banks are more likely to provide funding if you have a clear business plan and can demonstrate sound strategies for managing your growth. • Be careful about what types of funding you use for each situation. For example, avoid using short-term funding for long term assets – these should be funded over the life of the equipment/service. If you have plenty of cash, then by all means use it rather than borrowing, but only
22 INHOUSE | DECEMBER/JANUARY 2015
after considering the tax implications. Make sure there is plenty of spare cash to fund working capital, particularly if your business is growing fast.
Reason no. 2: Lack of Expertise We have seen many business people who are passionate about their product and their customers, but not all of those people are creating profitable businesses. The businesses that do really well are managed by savvy business people who understand how to take cash, convert it into assets and working capital, and make a profit over and above the cost of that cash. If ’savvy’ doesn’t describe you, then get a good accountant/ business advisor/manager/partner who is. That person needs to be aligned to your business, have specific construction industry experience, and not be afraid to give you an honest perspective. Some tips are below: • Know what indicators matter, to manage and understand your business each day/week/month/year. Focus on a few key areas and manage them carefully. • One of these indicators should be free cash flow’. We see a lot of new clients who do not understand this concept. If your accountant can’t tell you what your ‘free cash flow’ is, find a new one. No matter how profitable your business is, you can still have negative free cash flow if your business is growing at such a rate that the profit is not sufficient to fund the growth. This means having to borrow more from the bank until you exceed the bank’s limits and they say “no more”.
FEATURE: Avoid the risks of growth!
Reason no. 3. The business model doesn’t work Another key reason a business fails is the business model is not sustainable. You have probably heard the buzz-word ’sustainability’ – it means not just being successful today, but also well into the future. • Sustainability is about the environment (for example, using sustainable material resources without creating excessive waste) but it also means financial and cultural sustainability - investing in the tools, systems, products, market research, funding, governance models and people so your business will perform over the long-term. • Make sure you are not so focused on making money today, that you can’t pull your head up and look far enough into the future and prepare for what is coming. Yes, we are in a building boom, but this means now is the time to build a brand and a business model that will be attractive to customers when the outlook is not as rosy.
• Know what return you are getting on the money you’ve invested. Most business owners know how much profit they have made, but in our experience they often don’t know how much capital they have tied-up in the business. The return on that capital is THE key measure of financial sustainability, and you need to understand and monitor it. In business you only need to get two things right – your cash creation mechanism (or business model) and your business culture – the thing that attracts and binds customers and staff to your business sustainably. What we still find surprising, is that business owners often know this, but they don’t seek the right advice on how to do it. You need to surround yourself with competent financial and business management expertise. If you focus on one thing this Christmas period, reflect on how to get the right financial and business management expertise you need for a successful 2015 and beyond!
INHOUSE | DECEMBER/JANUARY 2015 23
DRAFTFCB M10 7442
At Mitre 10 you’ll find the right people, the right products and all the 24 INHOUSE | DECEMBER/JANUARY 2015 tools you need to help your business grow. Visit mitre10.co.nz/trade
FEATURE: Stolen tools? Make stolen items more easily identifiable by properly marking and recording serial numbers!
Stolen tools? Safeguard your property with: SNAP:
Paslode:
SNAP is an initiative of the New Zealand Police, aiming to prevent burglary, and make it harder for criminals to sell stolen goods in New Zealand. Create and store an asset list of property serial numbers for free! If an item is lost or stolen, you can access this secure online serial number list, from anywhere, at any time. Recording serial numbers in advance offers peace of mind if burglary occurs. It can assist the police and your contents insurance claim, and makes it easier to track your stolen property. Protect your property now!
Has your Paslode tool been stolen? Please contact the Police as soon as possible and obtain a Police Incident Number. Complete the Stolen Tool Report using your Police Incident Report number and we will contact the Police if the tool surfaces through any of our service networks. www.paslode.co.nz/register_stolentool
www.snap.org.nz
Cash Converters: Report Stolen Property Unfortunately, theft and burglary are part of life. If you have been unfortunate enough to have this happen to you, we at Cash Converters would like to help. Please email us at enquiries@cashconverters.co.nz and include details of your items that have been lost or stolen, we will distribute the details to our stores and do our best to assist you should the item be brought into any of our stores. www.cashconverters.co.nz/contact/report-stolen-goods
Dollar Dealers: Something Missing? We Can Help... Dollar Dealers has an excellent relationship with the New Zealand Police. We are part of Operation SNAP (Serial Number Action Project) along with Safer Auckland City, Insurance Council of New Zealand and New Zealand Traders Association. It is a police project to get the public to record the serial numbers of items they own to decrease theft and having better chances of getting their goods back if they are stolen. www.dollardealers.co.nz/stolen INHOUSE | DECEMBER/JANUARY 2015 25
FEATURE – Centrespread
PAST, PRESENT AND FUTURE
For Waikato couple Mike Bell and Angela Kimber, their home renovation project in Raglan was about the past as well as the present. The couple brought the house in the 1970’s and it was their family home for many of those years. Then, when work and other commitments led them to Hamilton they always hoped that they would return to the grand old villa, built in 1896 and one of the first homes in Raglan. The view from the site is stunning, with vistas over the Raglan harbour and out over the vibrant village filled with boutique shops and cafÊs. Mike and Angela first contacted Hayward Builders in early 2012 with the intention to renovate the home. When Mike from Hayward Builders first met with Angela, her idea was to keep the villa as original on the outside as possible, while putting a loft style second storey above to capture as much of the ocean and harbour view. Her other idea was to have
28 INHOUSE | DECEMBER/JANUARY 2015
the interior looking modern with sharp lines, like a Remuera modern villa. Mike from Hayward Builders introduced Angela to Architect Allan McIntosh from Buildology, who has much experience in this style. Plans were drawn up, consents granted and then once the demolition began, the true extent of the state of the building became apparent. Once the plasterboard and match lining were removed, the integrity of the framing was too decayed to the point where every stud would need to be replaced. Waikato District Council felt that the job was becoming a complete rebuild with issues located in the roof as well. Mike from Hayward Builders sat down with Mike and Angela, provided them with the revised costs for the project and it worked out more cost effective to demolish the house and build it new. Once this was agreed, the work began in January 2013.
Mike and his team, Cody McGregor and Brittyn Sanson, worked away for three months and were fortunate with the weather throughout the project. The house has the identical footprint, with a second story added onto the home to create an office multi use room for the couple. Mike likes to use it as a jamming room for his drums and Angela likes to use it for entertaining with friends. On the ground floor there is a lounge and dining room, with a long bench seat with storage across the width of the lounge. There are two bedrooms plus a master bedroom and ensuite, main bathroom and laundry. A new kitchen from Hostess Joinery was constructed using H채fele hardware, with gloss cupboards, pull out Lazy Susans and includes a stylish H채fele acrylic bench top. Mike Hayward and his team laid Oak timber floorboards in the living areas, which was a real feature of the home.
The original villa in 1896 was constructed with rusticated timber weatherboards. This is where the team from A-lign came in. Brent Spears from A-lign recommended that Hayward Builders use the concealed fix rusticated timber weatherboard which came out of the factory with the first two Dulux top coats. Having the two top coats already on the boards meant that they could be fixed quickly, and also meant that the scaffolding could come down a lot more efficiently with only one coat to paint onsite. The concealed fix was great for this house being so close to the ocean, as it meant no stainless nails were required. It was great to see Brent with his toolbelt on, showing the team the system onsite! It gave Hayward Builders peace of mind having the Dulux paint system guaranteed on the A-lign products.
INHOUSE | DECEMBER/JANUARY 2015 29
30 INHOUSE | DECEMBER/JANUARY 2015
FEATURE: Centrespread
Dave from Rylock Waikato (who is an associate member of Certified Builders Waikato region) came onboard and suggested that with having such a high stud height, (3m stud walls) Low-E/Argon glass should be used in the Fletcher Aluminium profile to ensure a warm home. Mike and Angela love the space that the bi-fold doors create in the loft, which open onto the second storey deck. A frameless glass balustrade from Alert Glass was used on this deck to give an unimpeded view of Raglan. Rylock also give each building company their own construction key, which can be given to their subtrades as well. Once the house has been handed over to the clients, the new client keys arrive in a sealed package which when used for the first time, disables the construction key. Not having to change any locks is great and this leaves the client with their own unique keys. The construction key can be used on every job. An interesting feature of the original villa was the two finnels which were attached to the apex of the roof. These were supposed to keep witches away. One of the team found these finnels in a shed, and even though they required some repair work, it was decided to remount these on the new house. Other interesting items, such as early local newspapers from 1899 onwards, were found and made for entertaining reading at smoko. Mike Hayward and the team enjoyed working on the project, and with clients Mike and Angela who had a clear picture in mind as to what they wanted. Due to both Mike and Angela leading busy lives, they are still working on their landscaping around the property but hope to get this completed in the New Year.
While the home has been an icon in Raglan at the top of the hill in the past, the team at Hayward Builders know that it will continue to be one for many years to come. For any queries, please see www.haywardbuilders.co.nz or call Mike on 021 356 376. Thanks to our suppliers and subtrades involved in this project: • Allan McIntosh from Buildology. • Dave Best from Livewire Electrical. • Matt Reid from Integrity Plumbing. • Peter, Stu and the team at Hostess Joinery. • Brent, Bruce and the team from Jenkins A-lign. • Building material supplier Bunnings. We used the Branz approved J Frame. • Dave from Rylock Waikato. • Photos by Emilano Lardone and Nimbus Media.
INHOUSE | DECEMBER/JANUARY 2015 31
EXCELLENCE THROUGH TRAINING
Ongoing Excellence Through Training Where has this year gone? Can you believe that as I sit here writing this article, there are only 5 weeks till Christmas. Anyway let’s find out what’s been going on around the regions. ToolBox Seminars The ToolBox Seminar that we have just finished, which was called the “Building Law Changes are you ready?” has been a bit of an eye opener for most who had attended the seminars. I would like to thank all of you who made the effort to get along. I must say, the number of people who turned up has been outstanding. I would also like to thank ITM who have done an excellent job in helping to promote this seminar with venues being packed out up and down the country. It just goes to show how committed ITM are to the industry. So to all those ITM guys and girls that I have met through this seminar, it’s been a pleasure to work with you all - thank you. Thanks should also go to MBIE for their input. You should all now know that these law changes come into effect on the 1st January 2015 and they will also have a wide reaching effect across all who work within our industry, including but not limited to sub-trades, merchants and clients. I would like to highlight some common questions which have been asked at the seminars and also share with you some comments and observations which have been made and some back ground around those. 1.
Homeowners Rights and Remedies: The Consumer Guarantees Act, Fair Trading Act, Contract Law, Building Act and The Licensed Building Practitioners Board are just some avenues a homeowner can use. If you do not put your own contract in place, you will have the default provisions implied upon you. These are NOT in your favour, so it makes sense to use a contract like Certified Builders provides. Remember from the 1st January 2015 by law you will have to have a contract in place ($30,000 threshold).
32 INHOUSE | DECEMBER/JANUARY 2015
Buster Coughtrey Membership Development Manager - South Island Email: buster@certified.co.nz Phone: 0800 CERTIFIED (0800 237 843)
2.
Client Referrals: Referrals are your best form of getting ongoing business. Remember that you are going to get a referral whether you like it or not. So if you drop the ball, then the referral going forward is not going to be a good one. You need to put your best foot forward so you are receiving great referrals. Make sure that your staff, contractors and sub-trades are all on the same page in relation to providing the client with a good experience. These can then be used in your disclosures.
3.
Verbal Contracts: Remember to be very careful what you say to a client or potential clients. Remember that a contract can be a verbal one. As we keep telling you, this tends to only work one way. If you tell a client something, you are making a promise and they will hold you to that promise. However, if the client tells you something, you need to capture this in writing and also get a signature for whatever it may be. This is critical around variations and will become best practice as a member.
4. Make sure you are using Sub-contractors contracts with your subbies. 5.
Checklists: Remember that the homeowner will be able to download the checklist from the MBIE website, so make sure you are not leaving any blanks. Homeowners will be comparing not only your quote.
6.
Disclosures: Again make sure you don’t leave anything out. Remember there are big financial penalties for entering false information and it’s not going to look too good on your LBP register. I would like to highlight that you can also ask the client to disclose information too, i.e. can they get a disclosure letter from their bank to say that they have the means to fund the project?
EXCELLENCE THROUGH TRAINING 7.
Merchant Contracts: Check your contractual agreement you have with your merchant and other suppliers of products which you use and remember to read the small print. Are they going to stand behind the products that they are selling you? Will they be providing you with a list of warrantees, guarantees, specification on products and a maintenance schedule? If not, is it time to look around and see who will?
8.
Contract Splitting: Note it is illegal to split the value of a contract, so trying to avoid having a contract by having a quote/estimate at $20k and another for the same project at $18k is not an option.
9.
Contract completion: You should all be aware that your contract ends at practical completion. This is important because this is when the start of your 12 months defect period will begin. Not when the CCC is issued!
10.
Post Contract Completion Defects: The requirement for the building contractor to attend to any defects notified in writing, is for up to 12 months. Don’t panic over this one! We have been living in this world for some time now whether you have realised it or not. i.e. if a client comes to you now with a defect in the first 12 months or for that matter longer period what have you done in the past?
11. Maintenance schedule: This will be a good thing from the builder’s point of view once the paperwork side of things has been done. The homeowner will have to prove to the builder that the maintenance has been kept up and done according to the maintenance schedule.
What’s Coming Up? ITAB Conference By the time you read this the ITAB conference would have been and gone. This is where we sit down with the tutors from the Polytechs and work out how we can best help them going forward. The New Zealand Apprentice Challenge We are just about to finalise the regional challenge for next year, so if you are thinking about entering an apprentice, or you know of an apprentice that should be entering, then you need to start thinking about it now. This is becoming a big event now and there will be limited amount of places that will fill quickly this year. The Great Apprentice Race Also, we are starting to plan the Great Apprentice Race, so start getting yourself fit because I will be looking for some great athletes that are in great shape. Who knows it might just be you! Thank You A big thank you to all who have helped or worked with me this year. It may have been a rollercoaster ride but as they say “what a ride it was”. Can I wish you all a Merry Christmas and I hope the New Year treats you well.
Till next time,
Buster
ly technic, Aoraki Po ed s now join Timaru ha e deliver th with us to me. ITAB sche
James has left to pursue other avenues. So long James, we wish you success in your future. Watch this space for the new Membership Development Manager – North Island in the New Year.
INHOUSE | DECEMBER/JANUARY 2015 33 James Smith
S
PRENTICE P A D E T E L P COM
y f Technolog c Institute o ni ch te ly o P h Christchurc s Limited , JDN Builder ey al g ag B Jack (SI) Limited Lund & Son C , tt e n n e B Daniel (SI) Limited Lund & Son C e, ri e ch g) Ltd Tamati Bro Hills (Buildin ett, Putney rn u B s e m Ja lick Limited nach, HR Gar Greg Catta lding Limited sen, DRH Bui n ia st ri h C Andrew n (SI) Limited C Lund & So Ross Dixon, opments Ltd s, Mica Devel b b o D Ltd ck ri Pat onstruc tion John Ross C n, so u rg Fe n Evan Construc tio bs, Churchill ctors Ltd Nicholas Gib lding Contra ui B y le al ’M Richie O ited Jed Hickey, Builders Lim ine, Bayshore rd Ja Ltd l e n u tio m Sa nstruc i, Ranger Co sh o b su it M Arata lders Ltd , Bushnell Bui Ryan Murphy er - Builder avin Garden G e, co as P Ltd Benjamin Contracting lo, B Morgan au P lu g ie n in Ta eest Build ne, Van de G Edward Pay uc tion Ltd Ross Constr hn Jo , ss o R Mar tin lders Limited Met zger Bui n, so ited at W truc tion Lim Matthew oughlan Cons C r, e ak it h s Ltd Gregory W dley Builder h, Shaun Bra rt o w it h W ) n Joh nology (EIT itute of Tech Eastern Inst lders Limited id Clarke Bui av D e, rk la C Samuel er Builders ot, Paul Boal Samuel Talb ) Zealand (FTB UNITEC New lding Limited B n, Canam ui o m ar H d ar Rich tion Limited firm Construc L) Tim Qu, Live arning (UCO ollege of Le Universal C uilders er, Caldow B Callum Fras n Builder n, A T Wilso Joshua Olso s , Paz Builder Ryan Pelham *
oyer deta Some empl
34 INHOUSE | DECEMBER/JANUARY 2015
ils may have
changed
GOOD JOB GUYS!
EXCELLENCE THROUGH TRAINING
WAIKATO
The hard graft of some of the country’s best building apprentices will be helping those at one of the city’s largest retirement homes and two charities to take a load off their feet. The Association donated ten garden benches to Alandale Lifecare, Hospice Waikato and True Colours Children’s Health Trust. The benches were built during the final of the NZ Carpentry Apprentice Challenge, which was held in Hamilton in June.
Stephen Parkinson (Psychotherapist True Colours), Warwick-Leigh James (Waikato Certified Builders Association President), Cynthia Ward (CEO True Colours) Shirley Goble (Chairperson of Alandale Residents Advisory Committee), Ross Ferguson, Manager, Alandale Lifecare Venue was at Alandale Lifecare, River Road in Hamilton.
Sharyn Cawood (Marketing & Fundraising Manager Hospice Waikato), Craig Tamblyn (CEO Hospice Waikato)
Brian D
illon
As we approach the end of what seems to have been a very fast year, I reflect on the training aspect from a Polytechnic perspective. We continue to see high levels of commitment from apprentices, tutors and employers/supervisors, to enable the next generation of carpenters and business owners develop the skills necessary for a sustainable future. Tutors across the country have gone well beyond job descriptions to support apprentices in their training, whether it be after hours meetings, discussions on site with employers or managing pastoral care issues. Employers and supervisors continue to meet the challenges of training apprentices in a constantly evolving industry, and with the pressures of running a business. Of course this training is taken up by the apprentices themselves, and the commitment made by many is very heartening. Travelling long distances to block courses (and sometimes attending with reduced income), writing up job logs during smoko or after hours, and meeting expectations of employers are all part of an apprentice’s role, in becoming a top quality carpenter. The AST Trust is very pleased to continue enabling the allocation of grants to support these committed carpenters in-the-making. The end of year sees the awarding of the ‘Promoting Excellence’ grants across the Polytechnics providing ITAB training. A total of $13,000.00 in grants has been made this year, recognising the very best of those committed apprentices. Many of the Polytechnics will present these at their graduation ceremonies in the coming weeks, with attendance from Certified Builders Association where possible. Thanks to those who have supported the AST in 2014, and we look forward to another successful year in 2015. Have a safe and enjoyable summer. Brian Dillon Chairman AST Trust
INHOUSE | DECEMBER/JANUARY 2015 35
36 INHOUSE | DECEMBER/JANUARY 2015
EXCELLENCE THROUGH TRAINING
Dear ITAB and Certif ied Builders Ltd I would like to take the chance to thank you both for the last four years of my building life. Earlier this year I was looking forward to ending my time as an apprentice and going off into the big bad world and making my own mark on the ever-changing building industry. But life would not be life without the constant twists and turns. Earlier this year I was getting ready for work when I got to my car I realised I forgot my keys. I rushed back to my room grabbed my keys then walked out my front door and slipped off the top stair. I fell 1.5 metres and landed flat on my back. I decided to take the “she’ll be right appro ach” when in fact it wasn’t. I was in pain for two weeks before my fiancé forced me to see a Doctor. The Doctor referred me to a spinal surgeon who sent me for numerous scans to try to solve the problem. When he finally found the source and reason for my pain it tore my dream apart. The doctor told me I had badly damag ed the lower lumber region of my spine. He said this is the reason you are in so much pain and I don’t know how we are going to fix it. He then said what do you do for a living? I replied I’m a building apprentice, he then replie d with “Is there anyway you can take on a super visor role?” I asked him why? He said “Because your body can no longer handle such a physically demanding role”. So it was back to the drawing board, I felt kind of lost for a while. I immediately got in touch with my ITAB Manag er Leni Fifita and told him about what I had just been told. He said to me don’t worry about it mate I’m sure we can come up with a solution. He called me into his office the next day and said “Look mate you have gained all this practi cal knowledge over this four years and you can still use it” he told me to enrol in Uni. I said I would have a think about it. I was about to leave the Unitec Trust building when Joe Hede called out to me and said “You participatin g in the ITAB Apprentice Challenge?” I turned around, walked into his office and told him what had happened to me. He was blown away. He also told me to enrol in Uni and do a degree that used my previo us building knowledge. After much deliberation I decid ed to
do a Bachelor in Construction Management but I couldn ’t afford the fees. I went back to the Unitec Trust office to talk to Joe to see if there was any assistance at Unitec . Joe Hede then told me about a hardship grant that ITAB and Certified Builders have and put me forward for the grant. One week later Joe Hede received an email saying that ITAB and Certified Builders would pay for half my course . When I was told about this I was absolutely blown away by the support from ITAB and Certified Builders. I was so struck by this generosity that I felt re-inspired to finish the last few months of my apprenticeship and also enter the ITAB Apprentice Challenge. The games this year were so amazing and so much fun. The task this year was to build a park bench. You had to really plan and manage your time accordingly. There were hours of plaining, notch ing, counter syncing checking to see if members fit and lined up. It was a true test of your skills and knowledge. I ended up finishing second to Shaun Maddren which was really cool as he’s a good mate of mine. And to everyo ne thinking about doing the challenge next year DO IT!!!! You will not regret it. You will have an amazing time. Then came the time I have dreamed about since becom ing an apprentice my final moderation. It has been a long journey but well worth it. All the information that ITAB constantly sends us via the InHouse magazine is pricele ss we are notified about latest changes in the building code. The support that is there from ITAB is truly amazing. There’s also heaps of cool perks like the student card, discounts on Swazi gear and other items. You truly put it on guys. Thank you for what you continually do. I appreciate all you have done for me this year. When my world was turned upside down my local ITAB team were there and ready to help, thanks guys. When I run my own sites I will make sure that I always have apprentices with ITAB. I would like to thank Colin O’Gorman, Joe Hede, Anand Sajwan, Campbell Thatcher and Earl Johnson from Unitec and from ITAB Dave Wix, Leni Fifita. And from ITAB Tauranga I’d also like to thank Lisa Henderson. Cheers Guys Richard Harmon Supported By INHOUSE | DECEMBER/JANUARY 2015 37
38 INHOUSE | DECEMBER/JANUARY 2015
FEATURE: ACC introduces ‘Data Dude’
How are we injuring ourselves at work?
ACC introduces Who’s getting hurt in ‘Data Dude’ the Canterbury Rebuild? CARPENTERS & JOINERS
TOTAL DAYS LOST TO INJURY IN 2012:
COST TO BUSINESS FOR INJURY IN 2012:
Since the 2011 earthquakes, 686,235 $135minjury + claims
NUMBER OF INJURY CLAIMS IN 2012:
COST OF INJURY CLAIMS TO ACC IN 2012:
11,423
$28m +
ACC has a range of free resources available to help people grow their H & S capability. Their latest tool is a ‘man’ called Data Dude – a monthly publication that reflects the latest injury stats and includes a toolbox talk aimed at frontline construction workers. Data Dude’s first focus is on the impacts of impairment - fatigue, drugs and alcohol.
in Canterbury’s construction sector have jumped more than 22%. Currently, ACC is HOW WE’RE HURTING OURSELVES receiving close to 500 claims every month, at an average cost of $2000 each. Whilst the majority of claims don’t become entitlement “The focus on fatigue andWe’re impairment is timely, given it’s 1,566 INJURY CLAIMS: INJURY CLAIMS: 2,845 3 1 claims (that’s where an injury is severe tired. Falling from height. getting towards the end of the year. Not only are people enough to require 5 or more INJURY COST: INJURY COST: $1,476,711 getting towardsalso the end of$192,781 Earlier this month, a labourer workingdays on off work) – tired from having workedIt’s a big year, they’re more it’s still an awful lot Christchurch of peoplefell getting hurt. the year; you’ve been doing longa a residential site in east likely to be out drinking after work and at weekends. It’s
the 3rd rung from the top.
INJURY COST: $1,378,979 ACC has made a significant investment in injury prevention to help keep Canterbury construction workers DAYS initiatives LOST: 44,082 safe. As well as providing health and safety-focussed tool “Another shooting a for frontline workers, Mike box builder talks andwas onsite barbecues also works with the Canterbury 2 We’re hungover. nail in place, he slipped, and nailRebuild Safety Forum to understand current safety issues and concerns; and then There’s no place drugs or shot into my hand. ” for develop resources to combat them.
alcohol on site. As summer and holidays “Working directly with industry means we can respond to approach, it’s easyTogether to get into issues as they arise. we’ve developed some really the habit of having a few beers injuries in the sector and to useful resources2,340 to help prevent INJURY CLAIMS: after work. instil and grow awareness of the importance of H & S guys. Don’t let INJURY COST: $1,125,252 onKeep site.”it moderate the rest of the team down!
DAYS LOST: 24,331
“Cuttingrecover. steel and a bit of steel/spark flew into on eyeFatigue goggles” is a wearing risk site.safety For more information thedespite number andon nature of construction claims in Canterbury, go to: www.acc.co.nz/ To avoid fatigue, get plenty of preventing-injuries/communities/canterbury-dashboard sleep and take regular breaks.
INJURY CLAIMS: 1,417 INJURY COST: $4,648,791 DAYS LOST: 105,711 “Lifting 15kg purlin onto roof, shoulder ‘popped’ out.”
Alert!
We’ve noticed a drop in the use of PPE lately. INJURY CLAIMS: 3,239 Remember PPE is worn at all INJURY COST: $5,239,923 times by everyone. NO exceptions. NO excuses
DAYS LOST: 152,440
“Lifting sheets of iron onto roof. Wind picked up, twisted my back.”
4
LOWER BACK/ SPINE
HAND / WRIST
especially if they’re providing a specialised skill or service. » Ifperhaps you’re using a ladder, make But even more significantly, the impact of injuries sureminor it’s secured and bottom - even ones – top extends well beyond the workplace. & oninterfere level ground. Don’t time, lean off Injuries with family leisure activities and INJURY CLAIMS: 1,413 the side and never go higher than future plans.”
DAYS LOST: 4,356
of uscontribution aren’t getting combination that doesn’thours; make asome positive to health and safety on site.”enough rest or sleep to properly
SHOULDER/ CLAVICLE
FINGER/THUMB
DAYS LOST: 0 4 metres. He suffered critical injuries. “The building progress, deadlines and “Worked asresulting aletjoiner with on noisy machinery Don’t this impact happen to you. workforce capability isheight: huge” says ACC Injury Prevention If you’re working at from age 16yrs until nearly 65. Wore hearing Consultant, Mike Flanagan. “When people get injured » Check there’s edge protection protection for last ten years thetojob.” on construction sites thereon tends be a flow-on effect, in place.
“Drilling wood and misjudged where the drill bit was, drilled left middle TOP 5 INJURY SITES BY NUMBER ACC needs you! finger, causing puncture wound.” 1) Lower back/Spine TOP 5We want to reward good businesses and individuals doing great things for H & S.OCCUPATIONS WITH BIGGEST If your – or one of your 2)business Finger/Thumb contractors or subbies – is doing something innovative, clever or different to manage H & S then let us know! INCREASE INJURY SITES 3) Eye IN CLAIMS
KNEE
4) Hand/Wrist
1. Lower back/Spine We’ll shout the winners a team a barbecue, deliver free H & S resources some First Aid or training vouchers. Get in INJURY CLAIMS: 1,260 1. Carpenters & Joiners 5) Shoulder/Claivicle touch with Mike Flanagan today: michael.flanagan@acc.co.nz 2. Finger/Thumb INJURY COST: $1,739,595 2. Electricians 3. Hand/Wrist TOP 5 INJURY SITES BY COST 3. Plumbers DAYS LOST: 25,017 4. Eye 5. Knee down off ladder, caught “Climbing
foot on last rung, tripped and landed
EYE
EAR
Where it’s hurting us
1) Lower 4. Heavy truckback/Spine drivers 2)INHOUSE Shoulder/Claivicle | DECEMBER/JANUARY 2015 39 3) Knee 4) Ear
FEATURE: Proposed NZMRM Systems Warranty Initiative
Proposed NZMRM Systems Warranty Initiative The New Zealand Metal Roofing Manufacturers (NZMRM) is an incorporated body representing the majority of metal roofing manufacturers in New Zealand. Metal roofs constitute over 95% of all Commercial roofs and around 75% of all Residential roofs in New Zealand. The NZMRM is a voluntary organisation and provides the metal roofing and cladding industry with a vehicle to lift standards, by addressing technical and regulatory issues at an Industry level, and to “increase the size of the pie”, by targeting generic promotional opportunities. In 2002 the New Zealand Metal Roofing Manufacturers launched SCOPE magazine, which promotes the benefits of steel roofing products to some 10,000 designers, builders and roofing companies throughout New Zealand. In 2003 the NZMRM published the Code of Practice, which has become the Industry guidance document for the selection, design and installation of metal roofing and wall cladding systems. In 2011 the NZMRM commenced work on an Industry Systems Warranty program. This work was undertaken in direct response to the pending Building Act amendments, which come into effect 01 January 2015, and which require Builders to offer “10 year regime” responsibilities for materials and workmanship. These pending changes have created a “vacuum” opportunity in the market that are not covered by any of the existing Supplier component warranties. Furthermore, the proposed Systems Warranty product is complementary to the existing Builder Warranty & Guarantee products and its proposed cover extends beyond all of the existing guarantee products in the market.
40 INHOUSE | DECEMBER/JANUARY 2015
During the last four years the NZMRM has been actively working on an Industry Systems Warranty program for pre-painted longrun products used in new and re-roof residential applications. The development of the proposed NZMRM Systems Warranty program has been an organic journey involving Members, Suppliers and Industry Partners, including the Roofing Association of New Zealand. Latterly the NZMRM has met with the Certified Builders and Master Builders Associations in regards to the proposed program. In due course the NZMRM will meet with ADNZ, NZIA and BOINZ representatives and Building Supply Merchants and other Industry participants in regards to the proposed program. The potential roll out of the proposed Systems Warranty program into other product areas and applications such as Wall Cladding, Metal Tiles and Rainwater Goods will be dependent upon demand. The key value proposition supporting the proposed Industry Systems Warranty program is that it; •
pplies when the Product, Supplier or Installer is no A longer around
•
Mitigates Builders Building Act Responsibilities
•
Supports Roofers Building Act Responsibilities
•
Supports, in conjunction with the NZMRM Code of Practice, best practice design, products and systems.
•
Becomes an inclusive “Quality Mark” for a published list of Approved Suppliers and Products
FEATURE: Proposed NZMRM Systems Warranty Initiative
In addition the proposed Industry Systems Warranty program reduces Industry compliance costs, supports professional and ethical behaviour, via a Systems Warranty Supplier Code of Conduct, inhibits the inappropriate substitution of customer specified products and provides the NZMRM with a financial vehicle to promote metal roofing growth opportunities. The Certified Builders and Master Builders Associations clearly understand the value proposition of the proposed Systems Warranty program and are supportive of it in principal, subject to viewing the final offer. The NZMRM expects to have provided committed Members , Suppliers and Industry Partners with a “beta” version of the proposed Systems Warranty program for legal, peer and financial review by mid-November 2014. The NZMRM understands that the November circulation of the Systems Warranty management company and product documents will essentially be the “starting point” in the development of a successful and sustainable Systems Warranty program and that there are still a number of unresolved issues including the ongoing compliance requirements for existing products and the testing and verification requirements for new products. The NZMRM is also working on a final review of the Building Amendment Act, the Fair Trading Act and the Consumer Guarantees Act to ensure that they are fully accounted for within the proposed Systems Warranty program. However, subject to there being no “show stopping” issues and a favourable review of the proposed Systems Warranty management company structure and product options, the actual introduction of a NZMRM Systems Warranty program would then be dependent upon it being accepted by the NZMRM Members at the 2015 Annual General Meeting or an earlier Special General Meeting. Though the catalyst for the proposed Systems Warranty program has been amendments to the Building Act requiring Builders to offer “10 year regime” responsibilities for materials and workmanship and for Warranty providers to prove that they are financially able to meet their long term liabilities, the proposed Systems Warranty program will also incorporate recent changes to the Fair Trading Act and Consumer Guarantees Act. The primary intention behind the proposed Systems Warranty program is to make it more attractive for Designers, Builders, Roofers and Homeowners to specify Systems Warranty approved products and suppliers by providing them with a cost effective “minimum performance” backstop warranty program that reflects the “fit for purpose” regime requirements of the Building Amendment Bill. To achieve this the NZMRM will be actively working with Industry Suppliers, including RANZ, to include a best practice design and performance requirements section within an updated version of the NZMRM Code of Practice, which will set the minimum standards required of the Systems Warranty.
Under the proposed program Roofers, Builders and Homeowners would be able to choose from a “Warranty Continuum”, ranging from the existing component Warranty options through to the proposed Supply & Install Systems Warranty program, as best suits the needs of their individual requirements and the project opportunity. It is also envisaged that NZMRM members would lodge the individual Systems Warranty applications from a published list of Accredited Suppliers and Code of Practice approved Products as a result of Designer, Builder, Roofer or Homeowner specification. As a result the proposed Systems Warranty program is an incremental value added offer to existing route to market and supply options. Due to the “minimum performance” baseline requirements of the Systems Warranty program it is highly likely that, in many instances, the component warranties offered by Individual Suppliers will offer additional cover to that of the proposed Systems Warranty, and Suppliers will therefore be actively encouraged to promote their individual value propositions within the Systems Warranty program. The proposed Systems Warranty program will be run by a separate Warranty company in order to mitigate potential liability issues. The Systems Warranty Management company will also provide Designer, Builder, Roofer and Homeowner customers with the protection of an independent platform to manage Warranty issues, which is of particular value if a Supplier was no longer around. It is also intended that the Systems Warranty Management Company will be a financial vehicle to lift and maintain standards and to actively target metal roofing growth opportunities. It will also provide the Industry with a coordinated vehicle to communicate with the Homeowner in regards to their maintenance and sub-trade responsibilities. The NZMRM is currently targeting a 01 July 2015 launch of the proposed Systems Warranty program subject to it meeting its various “sign off” milestones and being accepted by the NZMRM Members at a March or April 2015 Special General Meeting. The NZMRM Systems Warranty sub-committee is composed of Darrell Back (Taranaki Steel Formers), Phil Prior (Roofing Industries), Warren Oliver (Franklin Longrun) and Gary McNamara (Consultant). Please do not hesitate to contact Gary McNamara directly on 021 975 891 or gmacconsult@gmail.com if you would like any further information on the proposed NZMRM Systems Warranty program.
INHOUSE | DECEMBER/JANUARY 2015 41
UNDER
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FEATURE: 2 Steps to Happiness for Business Owners
2 Steps to Happiness for Business Owners 1. Open your eyes to the big picture! Prepare for your next life! Failing to start with the end in mind is one of the most common errors of business – when we ask a “start-up’ business “so how and when will you exit the business?” We get some very strange looks! But, a clear vision of the exit pathway helps shape the business model, gets the processes documented, guides your staff selection, and ensures the company identity is separate from your personal identity. For example, it is much harder to sell a business that is your name – Fred’s Plumbing is YOU! And you certainly don’t want to have to change the name just before the sale and lose the goodwill you’ve built up over years – devaluing the business in the process! Starting with the end in mind makes sure you delegate, groom your second line of management, and build an “automated business” that can run without you. Working with the “end game” in mind you will have tidy and up to date shareholders agreements, simple and up to date accounts, and a robust marketing plan for the future. You have identified the next products and services to develop, and you will have an outline plan for how that will happen. All your agency and distributor agreements are up to date and fully transferable! In short – starting with the end in mind gives you the best possible capital return, and along the way improves profitability and ease of management, making YOU much happier!
The result is often blurred or non-existent boundaries, poor staff performance and in the worst cases personal grievance payouts. Learning to set clear boundaries with staff is essential – be consistent, clear, and fair. Don’t play “favourites and scapegoats” no matter how tempting it is. Don’t gripe about any staff member to other employees. Be clear in your expectations of high performance and use a simple but robust performance appraisal system that is objective, regularly applied, and religiously followed up! Lead by example – if your staff see you making free and easy with the company’s stock and assets, they will too! Ensure there are consequences for poor behaviour or performance – don’t just let it ride. The other staff are watching! And taking note! There also must be “consequences” for good performance – we’d always recommend non-cash rewards, but do make sure you give a genuine acknowledgement of good work. Suggestions could include movie passes, dinner vouchers, mystery weekends, long weekend bonus leave, whatever works in your business and industry. Good fences make good neighbours, and good boundaries make for happy, productive workplaces! Don’t trespass over those boundaries and don’t let your staff trespass either, and you’ll be a lot happier! All our programmes are registered with NZTE’s “capability voucher scheme” so you may be eligible for financial support in taking action!
2. Good managers set good boundaries! A great number of New Zealand SME owners and managers have come off the tools and into business ownership without stopping to change hats from employee to employer!
Call Advantage Business today to find out how. 0508 238 268 info@advantagebusiness.co.nz www.advantagebusiness.co.nz
INHOUSE | DECEMBER/JANUARY 2015 43
FEATURE: How do builders’ rights and suppliers’ rights compare? Geoff Hardy is the senior lawyer in the Auckland commercial law firm Madison Hardy. Contact Geoff on (09) 379 0700 or geoff@madisonhardy.com. This article is not intended to be relied upon as legal advice.
HOW DO BUILDERS’ RIGHTS AND SUPPLIERS’ RIGHTS COMPARE? By Geoff Hardy of Auckland commercial law firm Madison Hardy When building projects come unstuck, and the owner has a legitimate claim about the workmanship, the cost, or the delays, often it is not the builder at fault. Frequently it is the fault of someone further down the chain, such as a subcontractor or the manufacturer or supplier of the building materials. In those cases the builder often finds himself between a rock and a hard place, because even though he may be the innocent party, he is the one who contracted with the owner, so he is primarily liable. Theoretically he can always pass that liability down the chain to where it belongs, but in reality that is easier said than done. The reason it is easier said than done, is because there is a mismatch between the rights that a homeowner has against the builder, and the rights the builder has against the supplier. That is largely because Parliament has drawn a line between those sectors of society who are considered to need special protection (consumers, employees, residential tenants, etc.) and those who are considered to be able to fend for themselves (businesses, employers, residential landlords, etc.). It just so happens that homeowners have been arbitrarily placed into the first category, and residential builders have been arbitrarily placed into the second. To illustrate where that leaves the small building company, it is helpful to compare the laws that their clients can use against them, with the laws they can use against their suppliers. A builder’s liability to his residential customer arises under the following laws: 1. The law of contract. 2. The tort of negligence. 3. The Consumer Guarantees Act 1993. 4. The implied warranties under section 397 of the Building Act 2004. 5. The 12 month defects warranty under section 362Q of the Building Act 2004.
44 INHOUSE | DECEMBER/JANUARY 2015
The first four of those liabilities continue for anywhere between 6 years (Limitation Act 2010) and 10 years (section 393 of the Building Act 2004). Like the defects liability provisions in all standard form building contracts, the statutory 12 month defects warranty is largely superfluous. It is a powerful weapon only in that the owner merely has to assert that there is a defect, and the builder has to prove otherwise. And if the home is sold within that 12 month period, the new owner gets the benefit of that warranty as well. Contrast those laws with the laws that apply in a businessto-business transaction. A supplier’s liability to its builder customer arises under the following laws: 1. The law of contract. 2. The tort of negligence. These liabilities continue for anywhere between 6 years (Limitation Act 2010) and 15 years (Limitation Act 2010), although if a supplier is deemed to have done building work (eg. some prefabrication) then the cut-off point is 10 years (section 393 of the Building Act 2004). Suppliers often provide (or pass on from the manufacturer) product warranties which serve as a marketing incentive to buy those products, and are intended to be for the benefit of the property owner. A warranty provides an “easy win” for the owner if the warranty provider agrees to honour it “no questions asked”, but not if the provider decides to contest it. The owner does have better rights under the Consumer Guarantees Act against the manufacturer, and in some situations may be able to enforce the Building Act implied warranties against the supplier, but in practice he will typically go after the builder because that is more straightforward. The builder’s rights against the supplier are largely governed by the supplier’s terms of trade, because that forms the contract between the builder and the supplier. Those terms of trade are, understandably, designed to protect the supplier rather than the builder. They are necessary because suppliers often encounter dishonest
FEATURE: How do builders’ rights and suppliers’ rights compare? or insolvent customers, and suppliers argue that they would only rely on the more draconian provisions in their terms of trade to protect themselves from those customers. After all, suppliers have an interest in maintaining good relations with their valued customers. Although few builders would have the inclination or the stamina to read a supplier’s terms of trade from cover to cover, they would be surprised by what they would find if they did so. For example, a director of a small building company would probably be aware that they are signing a personal guarantee when they sign the supplier’s credit application form, but how many would realise they are also mortgaging their home and their bach to the supplier and any other investment property they might own? It is also common for terms of trade to say the following things: • The builder cannot cancel the order no matter how defective the products or how delayed their delivery. • The supplier will have no legal liability whatsoever for any product or service supplied by it. • The supplier gives no warranties or representations about any of its products or services whatsoever. • If the law won’t allow the supplier to rely on those exclusions, then its liability is limited to the price of the goods or services, even if (in an extreme case) they caused major structural damage to a multi-million dollar building. • The liability of a trustee is not limited to the assets of the trust.
Because the builder is not considered to be a consumer, he does not have the protection of the Consumer Guarantees Act, the Building Act warranties, and the 12 month warranty, which would override the supplier’s terms of trade. So he cannot pass on the liability he owes to the homeowner, back to the supplier, at least under contract. And it is hardly likely that the supplier is going to re-negotiate the wording of their terms of trade for a small builder customer. So if there is a defect in the supplier’s products, even though the supplier is technically liable for it for between 6 and 15 years, in practice the supplier can deny liability if it chooses to. There might be a reasonably strong case against the supplier in negligence, rather than contract. However the builder could only afford to take the supplier on if the claim is less than $15,000 and he can go to the Disputes Tribunal. Above that, unless the builder can get his trade association to come to the rescue, he would have to take the supplier on in the courts with all the cost, delay and stress that that entails. There is one other possibility, however, thanks to recent amendments to the Fair Trading Act. The builder might be able to persuade the Commerce Commission to take the battle to the supplier. That would be on the basis that the supplier’s terms of trade is a standard form contract, and it contains unfair terms. However even if the builder did persuade the Commission to act, that would be a two year process which would bring no relief to the builder for what happened in the past. The problem is that the Government lumps small businesses in with big businesses, and assumes they all have equal bargaining power, whereas in reality that is a complete fallacy. Small businesses should be lumped in with consumers, where they belong.
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INHOUSE | DECEMBER/JANUARY 2015 45
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ASSOCIATION NEWS
ONLINE EMPLOYMENT AGREEMENTS NOW LIVE WORK YOUR WAY THROUGH AN EASY TWO STEP TEMPLATE • Employee Name • Start date • Job title
• Days/hours of work • Rest periods • Notice of termination • Pay rate • and a few other details
Certified Builders have added another tool to your Business Toolbox to make running your business that bit easier! It is law to have an Employment Agreement in place with your Employees whether they be Qualified Carpenters, Labourers, Apprentices or Administration Managers. Like our building contracts, the Employment Agreements are now available to be filled in online and easily printed from your office! Our Agreements are all worded for the Construction Industry and regularly updated as new law changes come into effect.
Login to the Members Section and get your staff Employment Agreements underway! Contact Millie if you require some guidance | 07 557 9214 or millie.t@certified.co.nz FREE Employment Helpline Trudy Marshall from E2 Law | 07 928 0529 WWW.CERTIFIED.CO.NZ
INHOUSE | DECEMBER/JANUARY 2015 47
MEMBERSHIP
MEMBERSHIP BENEFITS Save time and As a member money of Certified Builders you are for your fleet entitled to a number of great benefits. with BP Fuelcard Certified Builders Association and Toyota Finance have teamed up to give members a BIG FINANCE deal on Hilux and Hiace. With Toyota’s proven reliability, strength and versatility to get big jobs done - this is an amazing offer not to be missed. So what are you waiting for? Go in to your local Toyota dealer and mention you’re a Certified Builder for some great Tradies deals.
The Caltex StarCard® is an excellent way to efficiently manage your fuel expenses and reduce your running around costs. t: 0800 733 835 For all the info you need andThe a benefits at BP include: fantastic online shop check •outA the free Fuelcard online system to manage fleet costs purchase limits and product restrictions • PIN security, members section of the Certified reduce fraud risk Builders website. Simply login to with • Receive discounts at over 200 retail stores, 60 truck your details and start exploringstops and 130 Noel Leeming discounted GAS Alley sites nationwide everything Certified Builders member Up to 40 days free credit prices exclusive to • can offer you and your business.For more information, Certified Builders. visit bpfuelcard.co.nz www.certified.co.nz
BP & G.A.S Alley Discounts
To find your nearest BP7 , visit bpfinder.co.nz Save cents off the pump BP0749 Fuelcard Print for Company Vehicle - 210x297.indd 1
Special members price for AA membership. AA Business Care – Passenger Standard $43.00 per vehicle per year. Normally costs $67.00.
Vodafone Contact Alex Marshall on 0800 422 202 for some great business smart plans with up to one month free on signup!
price at BP, BP Truckstop and G.A.S. Alley stations across the country with no card or transaction fees. Simply download the application form on the Deals & Discounts page of the members website.
We have partnered with Fisher & Paykel to bring you discounted prices exclusive and confidential to members. Take advantage of these special prices and pass on the discounts to your clients to sweeten the deal. Check out the Certified Builders website for the latest monthly price list.
13/09/13 1:36 PM
Need some of the world’s most durable outdoor clothing for doing the stuff you enjoy? Hunting, fishing, building or sports? Grab your Swazi gears at trade price! Join Clan Swazi as a CBANZ member today and you will be able to purchase Swazi Clothing at special CBANZ prices! www.swazi.co.nz/Prodeal/CBANZ/
Secure information from your mobile direct to your online diary with LocknLoad. Onsite job management tool, proof of work completed, photo diary notes, create job files.
Certified Plans This scheme is a powerful new tool to help secure new clients and new home building projects! The plan range consists of approximately 24x architecturally designed new home plans. Check out: www.certified.co.nz/members/certifiedplans/
48 INHOUSE | DECEMBER/JANUARY 2015
MEMBERSHIP
CBA Insurances Limited & Homefirst 10 Year Builders Guarantee. Access to the resources of CBA Insurances Limited – your Insurance Brokers, and to the Homefirst 10 Year Builders Guarantee.
TOOL SEMINAR BOX SERIES Regional Trade Training and ToolBox Seminars Regular Trade Training and ToolBox Seminars in your region which are provided to both up skill your knowledge as well as teach good business practice. LBP Skills Maintenance Points are awarded for attendance.
INHOUSE Magazine The official Magazine of Certified Builders – comes to your letterbox bi-monthly bringing you up to date with issues that affect members and happenings within the Association and the Industry.
Licensed Building Practitioner We help you get licensed! We have created a streamlined process for our members to make it quicker and easier for you. We also have LBP stickers available for purchase. There is a selection of vehicle size and stationary stamp size decals. Certified Builders liaise with Council and DBH giving guidance on compliance. We have also created a great tool for builder’s onsite – a detailed Licensing Handbook which is a paint by numbers approach with all things licensing on site, so you can get on with the next job and not waste time chasing compliance documents.
Clothing As a member you can purchase a range of clothing which comes with the Certified Builders logo embroidered or screenprinted. T-Shirts, polo shirts, vests, jackets, overalls, hoodies, beanies, and sun hats all available for purchase! Why not get your company logo on your clothing too!? Millie T can organise this all for you! View our online shop under the members section of the website.
NZS3604:2011 Get the members rate for the new version of the NZS3604:2011, E2 Moisture Manual 2011, NZS Onsite Handbook or any other Acceptable Solution.
Stationery A range of stationery available including: presentation folders, letterhead, self-adhesive logo stickers, electronic Certified Builders logo’s, invoice books, variation books, subcontractor forms, site signage and much more. View our online shop under the members section of the website.
Websites & Online Advertising It is VITAL to have an online presence in this day and age and CBANZ offers our members two different website solutions. The first option is an enhancement of your information that sits on the Certified Builders website (under Locate a Builder) which we call a Display Page (setup for $390 + GST). We list ALL of our members details to be found by consumers looking for builders (over 3,000 people per month) – here you can enhance the information by including your logo, images of past projects and even yourself and your team as well as text to build trust and interest with the consumer. You can also link directly from your Display Page to your Website (if you have one?) and if you don’t have one CBANZ can build you a 4 page website for just $750 + GST. Go to www.websites.certified.co.nz for more info.
Want to become a CB member? Check out our website for all the details www.certified.co.nz INHOUSE | DECEMBER/JANUARY 2015 49
ASSOCIATION NEWS
What insurance do I need to have under st
From the 1 of January 2015 all builders will be required to disclose certain information to every client on jobs worth more than $30,000 or face a penalty. This disclos ure includes information about the insurance you have. So what do you need to have in place and what do you need to disclose? The regulations mention some policies specif ically and say that you must specify the amount and any relevant exclusions. But can you decide which exclus ions are relevant, and what if you get it wrong? The regulations don’t require you to have insuran ce, they just mean you must tell your clients what you do have, so that they can make an informed choice. We describe below three policies mentioned in the regulations. CONTRACT WORKS INSURANCE Protecting the project from hazards such as theft, accidental damage, storm, fire and natural disaster. Every job should have contract works insuran ce in place, contracts will require it and if it’s a new build the builder is generally responsible for arranging it. It should name the builder, owner and sub-contractors, so all parties are covered. However, if the job is a renovation, alteration or addition it is usually the owner, not the builder, who should arrange contract works insurance through their existing house insurer. Again, it should cover all the parties involved in the build. Common exclusions include: damage to existing structures consequential loss contractor’s tools and equipment partial occupation workmanship & design PUBLIC LIABILITY INSURANCE Protection if you’re held liable for accidentally damaging someone else’s property (and in some cases causing injury) . Every builder should have public liability insura nce in place, and most modern contracts require it. People want to know that if their builder (or one of their subbies) causes some major damage, there is an insurance company with deep pockets available to pay for the loss.
the new Building Act rules?
Common exclusions include: faulty workmanship & materials damage to the property you’re working on your own products professional advice PROFESSIONAL INDEMNITY / ERRORS & OMISSIONS INDEMNITY Protection if you’re held liable by someone for a financial loss they have suffered (that has not resulte d from accidental damage). People are now more willing to take the origina l builder of their house to court if they’re not happy with some aspect of it. It has been difficult for trade professionals to get indemnity cover that suits their occupation in the past, but this is now available and more contracts are requiring it. Common exclusions include: property damage & injury financial estimates building surveys and inspections faulty materials and workmanship financial failure The regulations also say you must disclose “any other policies that are relevant”. Once such policy probably worth disclosing is the commercial motor vehicle cover you hold, in particular the third party liability aspect, which covers the damage caused by your vehicles to other people and their property. The biggest challenge for builders will be decidin g what the “relevant exclusions” are that they need to disclos e. If there’s one good thing to come from this, it will be a greater awareness among builders of the cover their insurance provides. This article is not exhaustive and there are other policies to cover different risks. In addition, individual policy wordings from different insurers may vary. You should refer to the specific wording of your own policy. Contact the team at CBA Insurances if you have questions about your insurance cover or for an assess ment from your insurance specialists.
DO YOU HAVE THE RIGHT INSURANCE FOR A BUILDER? LIABILITY
Ring CBA Insurances for a quote for our Essen tial Builders Pack:
PUBLIC LIABILITY STATUTORY LIABILITY ERRORS & OMISSIONS (E&O) INDEMNITY DIRECTORS & OFFICERS LIABILITY
ASSETS MATERIAL DAMAGE VEHICLES CONTRACT WORKS (project or annual) TOOLS & EQUIPMENT
INCOME INCOME PROTECTION ILLNESS & DISABILITY MEDICAL ACC COVER PLUS EXTRA
Other cover is available, including commercial and private/domestic policies
Call Gwenda on: 0800 237 843
50 INHOUSE | DECEMBER/JANUARY 2015
e: insurances@cbainsurances.co.nz
MEMBERSHIP
CERTIFIED BUILDERS MERCHANDISE POLOS/ TEES Cotton or BIZ COOL breathable Heaps of styles to choose from Lots of colour options Prices range from $19 to $43
DIRTYMAN & LIFEPROOF CASES 4/4S/5/5S LIFEPROOF Phone Cases DIRTYMAN moisturiser, scrub, deodorant, SPF, shaving gel, facewash Hot Prices!
SHORTS Board Shorts vented durable and breathable, jump in for a surf after work! $49 Work Shorts are 100% cotton, durable and comfy $45 Black or Navy available
ALL MERCHANDISE IS AVAILABLE ON THE ONLINE SHOP! ONLINE CONTRACTS | ONLINE EMPLOYMENT AGREEMENTS | CLOTHING | STATIONERY SIGNAGE | JOHN BULL WORK BOOTS | LICENSING | CERTIFIED PLANS COLLATERAL LIFEPROOF PHONE CASES | DIRTYMAN SKINCARE | NZS3604 & E2 PUBLICATIONS WWW.CERTIFIED.CO.NZ/MEMBERS/ONLINE-SHOP/
INHOUSE | DECEMBER/JANUARY 2015 51
MERRY CHRISTMAS
MERRY CHRISTMAS OFFICE CLOSURE
Stationery /Clothing
Certified Builders Association National Support Office will close at 1pm on Wednesday 24th December. The office will reopen at 8.00am on Monday 12th January 2015. We wish you all a wonderful and safe Christmas break with your friends and family!
Please have your stationery orders in by midday on Tuesday 23rd December so the office elves can package them up and send them out before we close down! Any clothing orders placed after Monday 15th December will not be processed until mid January 2015.
END OF YEAR ORDERS AND ONLINE SHOP CLOSURE
Fisher & Paykel Orders
Online/Hard Copy Contracts will not be available due to updates needing to be made to the contracts to ensure they comply with the new regulations. Certified Builders are on the pulse of these changes and will be working to update all of our building contracts as soon as we can.
Please have your F&P orders in by 3pm on Monday 22nd December 2014.
Online Employment Agreements will still be accessible on www.certified.co.nz over the Christmas period. You will be invoiced in mid January.
ONLINE SHOP CLOSURE The online shop will close on Sunday 21st December at 11.00pm, it will reopen at 8.00am on Sunday 11th January 2015.
Down the
tools and clean
ute as Christmas is upon us! the
STAY SAFE AND ENJOY THE HOLIDAYS
MESSAGE FROM THE CHIEF
STILL New Zealand Most Qualified Builders. Well, we are nearing the end of another year of change in the building industry - I am not sure where the last 12 months have gone. I was heartened to hear at our recent Regional Presidents meeting that the majority of regions have solid workloads, which is a pleasant change from the past few years. Now all we need is to have all regions reporting solid and consistent workloads currently and ahead. Housing affordability and sector productivity will continue to be on the public agenda over the next 12 months at least and there are many changes that can be made to address these issues at the core - rather than looking for marginal or fringe issues (e.g. builders margins) to concentrate on. I am sure Minister Smith, the Minster of Housing and Construction will have a full agenda of changes to address these and other pressing issues as we enter the New Year of 2015. Many of these changes, I am sure, we will welcome if they result in less paper and compliance, a chance to make better margins and generally make the industry a simpler more efficient place to operate in.
Grant Florence – Chief Executive
Many thanks to those of you who responded to the 3 quick surveys we undertook on a range of service related topics. This feedback is invaluable for us as we continue to strive to investigate and launch new services and opportunities for our members. Once again many thanks. It’s timely that I wish all Certified Builders members, family and friends a very Happy Christmas and a safe New Year. Enjoy a break and come back firing on all cylinders for 2015. It is timely to reflect over this break that we as members of Certified Builders Association are still:
“New Zealand’s Most Qualified Builders”
It is heartening to see that we continue to experience a pleasing surge in new membership applications as more and more builders see the value (both now and in the future) in being part of Certified Builders Association.
INHOUSE | DECEMBER/JANUARY 2015 53
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