The official magazine of New Zealand Certified Builders Association
Are You Exposed by Client Instructions? Pg 18
Building a High Performance Sales Team Pg 27
A Guide to Helping Your Mates Pg 37
April/May 2020
NZCB Builders Travel to the USA to Learn About Latest International Trends See pages 24–25
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Contents FROM NZCB Message from the NZCB Board Message from the Chief Executive Message from the Group Technical Manager Risk Management Tips Get the Look! NZCB Stationery On the Road with Geoff Hardy Appliances at Commercial Prices NZCB Builders Travel to USA to Learn About the Latest International Trends Changes to NZCB Events for 2020 NZCB National Partners
AROUND THE REGIONS 2 4 6 8 10 12 12 24 34 45
14 16 17 18 22 26 27 28
HEALTH AND WELLBEING Coping With Stress A Guide to Helping Your Mates
Thanks to our NZCB Strategic Partners
30
Gift of Garden Bench Seats Delights
31
Message from the North Island
32
Message from the South Island
33
HEALTH AND SAFETY How to Manage and Report Accidents at Work 36
NEXT GENERATION
IN THE KNOW Minimum Wage Increase and Potential Unintended Breaches Taxing Times Ahead for Builders Winning Tactics for Dealing With Uncertainty Are You Exposed by Client Instructions? Sustainability – It’s Not Just About Recycling Concrete Industry on Track to Meet Emissions Reduction Target Building a High Performance Sales Team The Need for Good Information
On a Hot Summer’s Day...
35 37
ITAB Apprentice Completions
38
Message from the AST Trust
39
TECH TIPS Why and How You Should Be Carrying Out On Site Inductions
40
Builders Need to Reach for the Cloud
41
NEWS BITES
42
IN THE MEDIA
44
Find NZCB on
Contact: 10 Marsh Street, Tauranga 3110 PO Box 13405, Tauranga Central, Tauranga 3141 Phone: 07 927 7720 Freephone: 0800 CERTIFIED Fax: 07 927 7721 www.nzcb.nz ISSN 2703-2418
InHouse is the official bi-monthly magazine of New Zealand Certified Builders Association. We’re always on the lookout for interesting stories or build projects that NZCB members have been a part of! To share your story with us please contact Linda. Alternatively, if you are interested in advertising in the InHouse magazine, we have a range of opportunities available to suit every budget. Linda Moody INHOUSE EDITOR linda@nzcb.nz | 07 557 9214
FROM NZCB —
Mark Dobbs NZCB Board Member
What a Blast! This year will see the end of my role as a New Zealand Certified Builders (NZCB) Board member. After 12 years in this role, I will be standing down to let a new member come on board. I can honestly say I have enjoyed every aspect of being on the NZCB Board. Yes, at times it has been confronting and frustrating (like having the Halo Guarantee suspended) but these are things that are sent to test us in life. It is how you go about dealing with these challenges that makes the difference and leaves you a stronger person, just like in your everyday life. I feel the personal development I gained whilst on the NZCB Board allowed me to grow within the role and become a better businessman within my own company. As a NZCB Board member, I have had the privilege of getting around a great deal of the regions and meeting many of you at local AGMs, committee meetings and the national AGM, Conference and Expo. This has given me great insight into how things function in your neck of the woods, as well as a chance to hear first-hand how the Association can provide the best tools and services for your business.
When I reflect back on my tenure in this role, I get immense pleasure in seeing how far NZCB has grown. I have been lucky to be surrounded by great men and women on the NZCB Board whose passion for the role and the organisation is always at the forefront. As members of the NZCB Board we are constantly challenged to keep abreast of the changing environment builders work within. We also need to help our membership navigate through what can be a frustrating and difficult industry.
If you have drive and passion for the industry and this great organisation, I would encourage you to consider standing for a position on the NZCB Board. If you have drive and passion for the industry and this great organisation, I would encourage you to consider standing for a position on the NZCB Board. It’s a great opportunity to grow your confidence, knowledge and leadership skills, many of which you already have from running your own business. There are great tools and ongoing support provided to help you in this role. I would like to acknowledge some of the many people who have helped me within my role as a NZCB Board member. Gordon Salt, Bevan McCathy and Mark Todd, the past and current Presidents respectively of Bay of Islands/Far North. Howard Harnett and Pete Brown, past and current Presidents of Whangarei. These guys have worked tirelessly for the Association and always showed me great support. I would like to recognise the past and present NZCB Board members I have worked with over the last 12 years. There are too many to mention in this article, but please accept this as a personal thanks to you all. Thanks to our current Chairperson, Kevin Sceats for the tremendous job he does at steering the ship. It’s a challenging position but one that he takes in his stride. Last but not least, a big thank you to our Chief Executive Grant Florence, our Group Technical Manager Jason McClintock and the staff at the National Support Office. You all do a fantastic job to keep the wheels turning on this well-oiled machine. Although my time on the NZCB Board is coming to an end, this will not be the end of my involvement with NZCB. I still intend to remain on the Whangarei committee and stay closely involved with the Association and wider industry. Thank you for the opportunity to have represented you on the NZCB Board, it’s been a blast!
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FROM NZCB —
Grant Florence Chief Executive
From the Chief Executive As I write these few words, New Zealand is leading up to the completion of the second week of the four-week lockdown that Government announced as part of the Tier 4 response to the Coronavirus (COVID-19) in our country. It certainly is a time of huge uncertainty for all members of our community, both from perspectives of the health pandemic impact and the resultant economic impact. In reality, as this is a very unique situation – one that has not been experienced at a widespread global level for many, many years – I don’t think anybody knows what the outcome will be, particularly from an economic basis. But one thing is certain, we will be in for some economic pain. From one angle those of us who are operating in the building and construction sector are in a better situation than those in other sectors, such as tourism, who will be hit hard. We had a very strong workload going into this with consents for new houses (a lead indicator) reaching a 45 year high of close to 38,000. This is a very strong position to be in and will hopefully be enough to see us through any sort of downturn in the economy. A driver of how busy we will be is one of consumer confidence. This is the confidence of consumers (homeowners) to spend and in particular to invest in a new home or an extensive alteration. Confidence is driven by a number of factors including interest rates (which are extremely low), prices and inflation and last, but not least, employment and wages. It is this last factor that may have some impact on how quickly we get back up and running. From discussions with Government over the past couple of weeks they are intent in kick-starting the economy when we emerge from the health crisis, which is a good positive intent. To what extent they will be able to do this within their fiscal boundaries will be interesting to watch. On another note, we have had to postpone this year’s Annual Conference and Expo due to be held in Wellington in June. This was inevitable due to the uncertainties facing us, but we have been fortunate to secure the same venue at a similar time (10th–12th June) in 2021. I wonder what our world will look at that point?
Like all our members we are undertaking a review of operations and services at an Association level to make sure that we retain the critical service levels to our members whilst ensuring the financial sustainability of New Zealand Certified Builders (NZCB). It’s not an easy task but one which all businesses are undertaking. We are, however, committed to keeping up the communication to all our members on critical issues and matters of interest.
We had a very strong workload going into this with consents for new houses reaching a 45 year high of close to 38,000. This is a very strong position to be in and will hopefully be enough to see us through any sort of downturn in the economy. I hope that all our members and their families are safe and healthy and remain so over the period of this health crisis. One last point – I will review these few words in a month and again in three months to see how much has changed over that time as, if the environment in New Zealand follows the changes we have all experienced over the past four weeks, much of this may be out of date! But here’s hoping not all. I take this opportunity to sincerely thank you all for your support of NZCB. ‘Till next time...
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FROM NZCB —
Jason McClintock Group Technical Manager
A Widget... or Much More? I’m going to take you back to the foundations of why this Association exists. It was founded on a belief and a common denominator. The belief was that builders should be recognised for the hard yards they have done to gain their trade qualifications, and that being a building professional means something. The common denominator was – we are all in this together to make a difference and affect change. Let’s take Halo as an example – I’ll call it Halo Mark I – a world-class product, one our industry had never seen before, had a higher commercial value than was charged. Why? Because the Association is not in the business of making money at the expense of our members’ pockets. We provide many functions, including some work our members never get to see, such as advocacy carried out for the greater good. My team and I will even help a desperate builder who may not be a member (usually a past member) needing sound advice. They are not turned away because this Association was founded on supporting builders and helping their businesses excel.
Something quite unique And so, an Association was born of like-minded trade professionals who went out into our industry and made a difference. This still forms the basis of our Association to this very day. The royal ‘we’ – members, committees, presidents, NZCB Board and the team at National Support Office have been supporting each other for 21 years, why? Because we all believe it is worthwhile doing so.
The success of our builders is everything The Association is not set up like a commercial enterprise. Commercial businesses don’t operate this model. They have shareholders to satisfy and are driven by returns. For us, none of this is as important as the success of our builders. We’re not set up to sell widgets to turn a profit, we provide services and support.
I remember something quite remarkable happening within Certified Builders in the early days. When the Association was riding on hard times, certain members and supply partners financially supported us through it. Why? Because they all believed in the greater good of the Association, and members today are benefiting from that belief and passion today.
We are all in this together to make a difference and affect change. So, if members are here to buy a widget, then you’ll get a widget and I’m ok with that. However, if you want to join our community of builders and experience much more, then I’m ok with that too. COVID-19 – together we’ve got this New Zealand!
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Advantage
FROM NZCB —
Risk Management Tips Whilst purchasing insurance products help protect your business from financial loss there are steps you can help reduce risk and physical losses. The most common policies for the construction industry are shown below with some handy risk reducing tips. Commercial Motor Vehicle Many of you will have commercial vehicles that are provided to staff. Steps you can take to reduce risk are: 3 Ensure all drivers have a current licence and check this every 6 to 12 months 3 Ask your employees about their driving history before letting them use your vehicles 3 Keep all vehicles well maintained 3 Ensure all vehicles are kept secure, locked and parked off the road where possible 3 When vehicles are onsite have a designated parking area away from heavy machinery, supply deliveries and high hazard areas 3 Have an immobilizer or GPS locator if possible.
Tools of Trade Most builders we talk to have a preconceived idea that insurance for tools is cost prohibitive even if they have never had this type of insurance before. However, the policy is actually reasonably priced, based on your previous claims experiences and level of cover you choose. Considering your tools are required to generate turnover this policy is one that should be first on the list. Tips for protecting your tools and reducing risk are: 3 Never leave tools unattended and unsecured on site 3 When tools are in a vehicle always keep the vehicle locked and secure 3 Where possible have tools in vehicles covered, windows tinted or in a lock box 3 If tools are kept in a trailer, keep the trailer locked and always use a wheel lock, hitch lock or other security device 3 Keep a record of your tools and receipts – if you do have to claim this will make the process go much faster.
Contract Works When building new or renovating an existing property either you, as the builder, or the home owner would have arranged contract works insurance. Contract Works insurance has many areas of optional, automatic and percentage variations for levels of cover. Arranged by home owner: 3 Ensure the build contract reflects that the owner has arranged 3 Always get a copy of the policy schedule and wording from the home owner before commencing work. Ensure that you are noted as the contractor and that all other allowances are in line with the build contract document.
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Always ask contractors and companies you engage for a copy of their liability certificate. Arranged by the builder: 3 Arrange cover as soon as you know the estimated start date and before any work, including earthworks, begins 3 Notify the insurer or broker of the owner’s financial interested party at the time the contract works is arranged 3 Think about what the owners are supplying and make sure the standard policy allowance is adequate (usually 10% of the contract value, but can vary). Some tips for reducing risk: 3 Keep any materials on-site secure 3 Have site fencing where possible to help protect the structure from malicious damage or theft 3 Don’t leave tools unsecured or visible as this attracts unwanted attention to the site 3 Watch the weather – keep up-to-date with the forecast in order to plan and protect from weather losses 3 Restrict site access to staff, contractors and professional services 3 Use a lock box for keys if they are left onsite for sub-contractors or staff.
Some other important facts about Contract Works insurance are: 3 For new builds, the cover automatically cancels if the home owner takes possession of the home 3 If the expiry date passes the policy automatically cancels. If you require an extension you need to contact the insurer or broker at least a few days before expiry 3 Make sure the policy mirrors the contract requirements 3 Notify the insurer of any damage or loss immediately 3 Policies have a clause for cessation of work – this means if work stops for a period of, usually, 60 days the policy automatically cancels.
Liability
3 Always set your public liability limit at your maximum exposure or, if you have entered a contract, make sure the limit and cover is in line with this 3 Always ask contractors and companies you engage for a copy of their liability certificate 3 Do not accept liability if an event occurs – notify your broker or insurer immediately. Quite often, you feel morally responsible however the policy only responds for legal liability 3 Never delay the lodgment of a claim or incur any costs before discussing this with the insurer or broker 3 Take the time to get the right advice – uninsured liability issues often see businesses not surviving 3 Check your policy schedule refers to LBP cover and Statutory Liability including defective workmanship.
This is such a broad area and there are many different types of cover available under the liability umbrella. Some general tips are as follows: Your REDi Builders’ Insurance is administered by BrokerWeb Risk Services Limited. For a free review of your existing portfolio, you can email BrokerWeb Risk Services on halo@bwrs.co.nz
0800 BUILDER (284 5337)
SmartBuildNZ
Easy, accurate building compliance
FROM NZCB —
Georgia Courtney Membership Benefits Coordinator
Get the Look! Check out the NZCB stationery we offer to help you look good and your business run smoothly.
A4 Compendium/ Tablet Case
$20.00
Comes with A4 pad and tablet holder. Leather look with embossed NZCB logo on the front.
Purchase Order Book
$15.00 50 PER BOOK
A5 size. Triplicate carbon copy form.
Presentation Folders
NZCB Sticker
SOLD IN PACKS OF 5
SOLD INDIVIDUALLY
NZCB branded on the front with a slit for your business card inside. These presentation folders are perfect to present quotes, invoices, contracts in a professional package to your clients.
190mm high, 100mm wide. Great for vehicles or site signage. Available in either red or white.
Tax Invoice/Payment Claims Book
To purchase any of these items, head over to the ‘Shop’ on the Members’ Toolshed – check out the work boots and NZCB branded clothing while you’re there.
$15.00
$20.00 50 PER BOOK
Triplicate, carbon copy, A4 size, with the ‘Important Notice (Form1)’ printed on the reverse of every page to comply with the Construction Contracts Act ‘making every tax invoice a payment claim’.
24/02/16 4:12 pm
CBI22816 NZCB Subranded
Member LH _vFA.indd
1
Notice of Variation Book
NZCB Letterhead
50 PER BOOK
100 SHEETS PER PACK
A4 size book. Triplicate carbon copy form.
Look professional for your client. A4 blank letterhead to use for quoting or letterhead. NZCB logo bottom left, allowing space for your company logo and details.
This can also be completed and downloaded for free under the Building Contracts section of the Members’ Toolshed
Also available with the ‘Important Notice (Form 1)’ printed on the reverse – perfect for printing your own invoices and to comply with the Construction Contracts Act, ‘making every tax invoice a payment claim’.
$20.00
$20.00
10
$3.00
All prices include GST
If you have any queries, please contact Georgia at the National Support Office georgia@nzcb.nz
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Architect: Darren O’Neil Architecture, Christchurch Builder: Gregg Builders Facade: Rockcote INTEGRA Lightweight Concrete Panel System
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FROM NZCB —
Jason McClintock Group Technical Manager
On the Road with Geoff Hardy You know you’re in for something special when you can get Geoff Hardy, construction law specialist from Martelli McKegg to hit the road for a round of Building Trade Professionals workshops. In March, Geoff and the Association visited five venues where he gave a legal perspective on payment claims. When I first approached Geoff to discuss the things builders were doing to disadvantage themselves, I was expecting something much more complicated than payment claims as number one. At these workshops Geoff talked about how builders can turn this disadvantage into an advantage and ensure they are paid what they’re rightfully entitled to. During the Q&A attendees were able to get high level answers to their payment claim questions. It is often during these sessions that the most learning takes place. If our workshops didn’t come to a town near you, you can still see Geoff Hardy via a recorded session in the Members’ Toolshed on our ondemand library of Building Trade Professionals videos. “I would personally like to thank our supporting partners Mitre 10 and GIB® whose sponsorship made these workshops possible.”
Appliances at Commercial Prices
Georgia Courtney Membership Benefits Coordinator
Did you know… New Zealand Certified Builders (NZCB) members have access to Fisher & Paykel, and Haier appliances for very competitive prices. We deal directly with Fisher & Paykel Head Office to get a better deal for you. To view the full range of appliances available for Fisher & Paykel visit www.fisherpaykel.com/nz.html and Haier visit www.haier.co.nz Price lists are updated monthly and are confidential to NZCB members only – these are not to be discussed with any other retail outlet. Placing an order is simple – we just need the item code(s), delivery address, contact person and phone number for delivery. An invoice will be emailed to you and payment is required in full for your order to be placed. Note: NZCB National Support Office is still able to send pricelists, and orders can be placed. However, due to NZ Government alert 4 restrictions for COVID-19, deliveries cannot take place and will be temporarily suspended until such time as the alert level has been downgraded to level 3 or below.
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For a copy of the latest price list, to place an order or for more information email Georgia at the National Support Office – georgia@nzcb.nz
U O Y G N I P L HE BUILD S E M O H Y H T HEAL We all know how important it is to ensure new and existing rental properties comply with the Healthy Homes standards.That’s why Bunnings Trade has a wide range of ventilation, heating and insulation products. If you’ve got a building project on the go, make sure it’s up to standard.
Mitsubishi Air Conditioning We stock a wide range of reverse cycle and split system air conditioners to keep homes warm in winter and cool in summer.
SmartVent SmartVent systems circulate fresh, dry air throughout the home while removing stale air and preventing condensation, mould and mildew.
Check out our full range at Bunnings.co.nz/healthyhomes
Knauf & 3M Insulation Our wide range of insulation products minimise heat loss, prevent cold and damp and make homes easier and cheaper to keep warm and dry.
IN THE KNOW —
Minimum Wage Increase and Potential Unintended Breaches From 1 April 2020, the minimum wage rates will increase to the following for adult workers: • For an adult worker paid by the day $151.20 per day and $18.90 per hour for each hour exceeding 8 hours worked by a worker on a day; • For an adult worker paid by the week $756 per week and $18.90 per hour for each hour exceeding 40 hours worked by a worker in a week; • In all other cases $1,512 per fortnight, and $18.90 per hour for each hour exceeding 80 hours worked by a worker in a fortnight. There are different rates to employees who meet the definitions of ‘starting-out worker’, or ‘trainee’.
employee to receive the minimum wage for each hour worked, and that averaging is not permitted beyond a week (if the employer pays weekly) or a fortnight (if the employer pays fortnightly). If an employee is paid monthly for example, because you cannot average over more than a fortnight, then the employee is not receiving at least the minimum wage in each week or fortnight worked.
Potential unintended breaches Over the last year or two we have dealt with a number of cases concerning unintended breaches of minimum wage legislation arising from earnings being part wages or salary and part commission earnings.
This is a complex issue and in our view, the decision that you cannot average beyond a week or fortnight has had created a flow an effect that was probably not intended. This may get corrected through future decisions of higher Courts or by legislative amendment.
Pay weekly or fortnightly to avoid the potential for a claim that the employer is breaching the minimum wage legislation. When the whole earnings are considered, they may amount to far more than the minimum wage. However, various Employment Court and Court of Appeal decisions have held that the minimum wage legislation requires an
In the meantime, our advice to employers is to pay weekly or fortnightly to avoid the potential for a claim that the employer is breaching the minimum wage legislation, and to ensure that commission payments take into account minimum wage requirements.
Danny Jacobson and Trudy Marshall are Partners at Employment Lawyers Tauranga and they specialise exclusively in employment law. They operate our Employment Helpline for NZCB members: phone 07 928 0529. (The above is by its nature general, and is not intended to be a substitute for legal advice.)
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0800 4 ALLIED
www.alliedconcrete.co.nz
30086
IN THE KNOW —
Taxing Times Ahead for Builders April and May can be taxing on your cashflow. That’s because IRD may expect you to make up to two income tax payments during this period. It’s important you pay on time – especially as the taxman charges steep interest (currently 8.35 percent) and late payment penalties if you fail to do so.
Provisional tax
Below we explain what the two income payments are and how an IRD-approved service called tax pooling can assist with either one.
The good news for those using the standard uplift method is you have certainty over the amount due if you have paid all other previous instalments on time and in full and you expect your income tax liability for this year to be less than $60,000. The amount due will be your final uplift payment.
Terminal tax The payment due on 7 April is what’s known as terminal tax. You will owe terminal tax if the provisional tax you paid in the previous income year (2019) was not enough to cover the actual tax liability for that year. Deal with this payment first. It’s older debt and you will have IRD’s debt collection team on your tail if it is not squared away on time. If you based your provisional tax for 2019 on an uplift of the preceding year’s liability (known as the standard uplift method), made your payments on time and in full, and the income tax liability for that year was less than $60,000, IRD should not charge interest and late payment penalties on any terminal tax owed until after 7 April.
Deal with older debt first – you will have IRD’s debt collection team on your tail if it is not squared away on time.
The payment due on 7 May is the final instalment of provisional tax for the 2020 income year.
In the event your actual income tax liability is going to be $60,000 or more, then there will be some guesswork required as IRD expects the final balance to be paid in full on 7 May. Interest will be charged from this date if it is not, so it’s important you make an educated guess.
Strapped for cash after paying terminal tax or have a better use for the funds? A tax pooling provider offers the flexibility of being able to pay provisional tax at a time that suits your business, without having to worry about IRD interest or late payment penalties. You simply let them know before the payment is due and they will make a date-stamped deposit into their IRD account on 7 May on your behalf.
If you’re paying IRD interest, you’re paying too much.
You then pay the provider at the agreed upon date in the future and the provider arranges the date-stamped tax deposit it is holding on your behalf to be transferred to your IRD account. IRD will recognise that you paid on time once it processes this transfer.
However, if you notice interest already being charged, an IRD-approved tax pooling provider such as Tax Management NZ can reduce the interest cost by up to 30 percent and eliminate any late payment penalties.
There is some interest to pay when you make your payment to the tax pooling provider, but this cheaper than what IRD charges if you miss or underpay a payment. The arrangement can also be paid in instalments.
They do this by applying surplus tax paid to IRD on the date it was originally due against your liability when you make your payment via them.
This article has been written in general terms only. You should not rely upon this to provide specific information without also obtaining appropriate professional advice after detailed examination of your situation. As always, we recommend you speak with your accountant or tax adviser.
As this tax carries a date stamp, IRD treats it as if you paid on time when it processes this transaction, wiping any interest and late payment penalties it was charging.
Lee Stace is the PR and content manager at Tax Management NZ. You can get in touch with Tax Management NZ on 0800 829 888 or via support@tmnz.co.nz if you have any questions about tax pooling.
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IN THE KNOW —
Winning Tactics for Dealing With Uncertainty About to make a big decision? Got some tough decision you’re putting off? 2. Sometimes you’ve just got to back yourself. Trusting your own judgement and then taking that leap of faith is what’s required when pursuing your dreams. Involving yourself in regular and ongoing staff development and upskilling your managerial and leadership techniques will build that self-confidence in your ability to make decisions with more ease.
3. Positive affirmations do help. Chose suitable messages, sayings, or quotes, to support you along the way. For example, Henry Ford said, ‘Whether you think you can or you think you can’t, you’re right’, or General Douglas MacArthur who said, ‘There is no security on this earth; there is only opportunity’.
4. Build a picture in your mind of a certain future. Have you ever had to make a big decision, one that required you to take a leap in the dark, was a long shot, or one that could have major repercussions on not only you but your family as well? Or have you ever come to a decision about something really important only to find out later there would be even greater challenges to face? And that often these larger challenges would come from inside you own mind, your own thinking? And finding if you’re stressed, anxious or tense… making decisions, even the little ones, can be worse still? Becoming comfortable with uncertainty is part of the decisionmaking process. Uncertainty is defined as a situation in which something is unknown. Research shows us that uncertainty is a major trigger for anxiety and worry. That is, whenever you’re not 100% sure of something, you are more likely to stress and worry about it.
Here are 7 winning tactics for becoming comfortable with uncertainty:
Focus on a future that feels comfortable; visualize the end result. Doing so takes the pressure off your current experience and helps remove any uncomfortable feelings of uncertainty.
5. Ask for help in laying your future’s foundations. Seek out the support you need – the earlier the better. There’s nothing written down that says you must deal with all the uncertainties of life and business alone.
6. Learn to become more comfortable with uncertainty. Start acting as if you are already comfortable and self-assured with any uncertain situation you face. This process allows you to generate particular thoughts and commit to particular actions as if you are already fulfilling the role.
7. A clear mind makes a difference.
1. You can never be 100% certain! No-one can predict the future, and herein lies the problem… almost everything has an element of uncertainty. Start small: practice becoming comfortable with uncertainty by trying out new (but low-risk) experiences, for example trying out a new restaurant without checking how other diners rated it, or go to a movie without first reading an online review.
When we are stressed, we can’t see the forest for the trees, we focus on the wrong thing, or we don’t know where to focus at all. Then our brains have difficulty coping with decision-making, big or small. Start working first on eliminating the overwhelm and reducing any stress you’re experiencing.
Linda Wells – The Business Stress Specialist Linda is a speaker, trainer and mentor. Over the past 14 years, she has inspired and educated men and women to lead, communicate and respond more effectively to avoid becoming overwhelmed, reduce stress and increase productivity, success and enjoyment. Linda is the author of the book Transforming Your Stress Into Business Success, packed full of practical strategies, communication tools and techniques, available at: www.transformingyourstressintobusinesssuccess.com
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IN THE KNOW —
Are You Exposed by Client Instructions? Can you be liable if you follow a Client’s instruction to engage certain subcontractors or use certain materials, but some time later defects emerge that are attributable to them?
You will all be familiar with this situation – you have been appointed the head contractor on a building project and you are responsible not only for the carpentry but also the procurement of materials and subcontractors, and the overall coordination of the project. However, in an effort to reduce costs the owners have told you that they want you to use certain subcontractors who they have a special relationship with, and/or certain materials that they are able to get cheaply. You have misgivings about this, either because you are not familiar with the subcontractors or materials in question, or because you have a feeling that they are not fit for purpose. Can you be liable if you follow that instruction, but some time later defects emerge that are attributable to them? We are talking here about subcontractors you engage and materials you procure, albeit at the owners’ request. You don’t have quite the same exposure if the owners contract with the subcontractors or suppliers direct. At the most you might be liable as project manager for not picking up flaws that you ought to have detected. But this article deals with nominated subcontractors and suppliers who have actually contracted with you direct, and who invoice you rather than the owners.
Let’s start with the normal situation where you have chosen your own subcontractors or selected the products from your building materials merchant. When a builder is engaged to provide building materials and services, they are liable to the owners (and subsequent owners) if the building materials and services prove to be defective. Of course, if the problem is due to a subcontractor’s default, the builder can always try to recover their losses from the subcontractor, assuming the subcontractor is still good for the money. And if the problem is product failure, then they can always try to pass that liability back to the supplier. But as we all know, that is not as easy as it sounds. Where a homeowner has five laws to use against the builder, the builder only has two laws to use against the subcontractor or supplier – the law of contract and the law of negligence. And the law of contract isn’t much use, because usually the subcontractor or the supplier wrote the contract. In the case of the subcontractor, there usually isn’t a formal subcontract, so all you’ve got to go on is the subcontractor’s quote and any fine print buried in it. And in the case of the materials, the contract is the supplier’s terms and conditions of trade, and naturally they exclude liability for everything.
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However, you can at least fall back on the law of negligence, which says the subcontractor and the supplier owe a duty to the builder to take reasonable care to ensure the builder doesn’t suffer any loss as a result of the work they perform or the products they supply. Bear in mind though, that in the case of defective products the fault usually occurs in the manufacturing process. So if your case is based on negligence it is the manufacturer you would typically go after, not your building materials merchant. How does the builder enforce their rights? Provided the subcontractor is still solvent and can be found, that is reasonably straightforward. The same applies to a local supplier. But in the case of materials that have come from overseas, it’s no use going overseas to sue the manufacturer or exporter, and it’s no use suing the manufacturer or exporter here, and then trying to enforce that judgment overseas. It’s expensive enough to issue court proceedings without the added complication of having an overseas party involved.
The law of negligence says the subcontractor and the supplier owe a duty to the builder to take reasonable care to ensure the builder doesn’t suffer any loss as a result of the work they perform or the products they supply. Fortunately there is a solution to these difficulties if the amount at stake is NZ$30,000 or less, and that is to bring a claim against the subcontractor or the local merchant in the Disputes Tribunal – our small claims court. This is relatively quick and informal, and it’s economical because you do it yourself rather than using lawyers (although we can help you prepare your case). You can bring a claim against the subcontractor for negligence and/or breach of contract. The Referee in the Disputes Tribunal won’t worry too much about what their quote or their terms and conditions of trade might say, and will issue a ruling which is fair and reasonable in the circumstances. Now, that is the normal situation. Is it any different if the owners have directed you to use their preferred subcontractor or to procure a cheap and inferior product? Well the answer is, you still have the same rights. But your exposure is definitely lessened, for the following reasons: 1. Homeowners’ rights against the builder are diluted down by what is known as ‘contributory negligence’ or ‘voluntary assumption of risk’. In other words, if they knew there was a risk that the subcontractor was unsuitable or the cheap product would fail – particularly if you warned them of it
– then they carry some responsibility for that decision. I say ‘some’ responsibility because it may not be 100% – it depends upon how reckless they were and how much they were informed of the risk. A signed waiver goes a long way to protecting you here, but only against the current owners. A subsequent owner won’t know about the waiver and won’t be bound by it – unless you send a copy to the Council and ask for it to be mentioned on any LIM that is issued for the property. And even then, an intending purchaser may not bother to get a LIM. 2. It may be that the designer originally specified materials that were acceptable to you, but the owners direct you to make changes after the building consent is issued. The difference between the specified product and the product chosen by the owners might be so great that the cheaper product may not be code-compliant. In that case, the builder would be within his rights to insist that a minor consent amendment be obtained from the Council for this product substitution. That might be enough to deter the owners. Alternatively, if the Council consents, then that is pretty powerful evidence that you have done nothing wrong. 3. The NZCB building contracts already deal with the situation of owner-nominated subcontractors or materials to some extent. For example, clause 3.3 of the current (2018) version of the fixed price + contract says “To the extent that the Owner is to supply any products or services… whether personally or by arrangement with a supplier or contractor, then the Builder’s prior written consent is required, and the Owner must ensure that those products or services meet the same standards as the builder is required to attain…”. That is a powerful answer in the case of subcontractors and suppliers who have contracted with the owners direct, but it may not necessarily apply to those who contract directly with you at the owner’s request. Bear in mind also that the above protections may serve you well in the case of a claim against you by the original owners, but they may not be so effective against subsequent owners, who will generally be unaware of your concerns about the substandard tradesmen or materials. Therefore, your ultimate protection is not to take on the project if the substandard tradesmen or materials have already been specified at the outset, and not to agree to the owners’ request if it is made after the building consent has been issued. Although the owners may well be within their rights to enforce their request as a variation, all the standard-form building contracts contain limits on the extent to which the owners can demand a variation that is unreasonable. And you could always make your agreement to the variation conditional on the owners indemnifying you for any resulting liability.
Geoff Hardy is a partner in the Auckland law firm Martelli McKegg and is a construction law specialist. Contact Geoff on (09) 379 0700 or geoff@martellimckegg.co.nz. This article is not intended to be relied upon as legal advice.
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IN THE KNOW —
Sustainability – It’s Not Just About Recycling To quote Kermit the Frog, It’s Not Easy Being Green. That may be so, and it made for a cute song, but it’s much tougher when you are red. By that I mean in the financial red.
With this year’s conference theme being around sustainability, I thought I would talk about another type of sustainability you should be interested in – that is your FINANCIAL sustainability. If you want to grow a business for the longer term and produce the kind of life for you and your family that is comfortable and with just enough stress to make it interesting, you need to build a financially sustainable business. You are not doing yourself, your team members, your suppliers and even your clients a favour if you cannot make a fair, consistent profit and sustain it in the long term. By building a profitable business you are able to provide a better level of service to your customers and assure them that you will be there down the track if they need you to fix any issues, or help them with their next project. So, what’s important to consider when building a financially sustainable business? There are many aspects and I welcome feedback from NZCB members as to what you consider important. Here are five suggestions I have, in no particular order: 1. Know your numbers. Do you know what is the average gross margin % you need to achieve across your projects each year to hit your required dollar profit amount? The amount of gross profit that will
cover your overheads, pay you an owner/manager salary and still leave a bit in the pot? This figure is vital to start building a sustainable business from and may require you to put a brief budget together. Contact me if you need help with this. 2. Move away from adversarial to collaborative selling. The traditional sales model in building is for the client (and maybe architect) to be in one corner and the builder to be in the other. The selling process is a game of punch and counter punch until one of the parties throws in the towel and a deal is done. Both parties probably have blood noses and feel a little hard done by. Is this the way to start the build relationship for the long term? Is a better, and more sustainable way for all parties to get together and make the outcome of the project the main focus? Work together to come up with the best solution, for all parties. 3. Learn. As a business owner you need to find time to learn how to run your business better, consider new ideas and put a plan together for the next three to five years. I know it’s tough to find the extra time and energy to do this, but the rewards in terms of money and less stress will be worth it in the end. Keep sharpening the (mental) saw.
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If you want to grow a business for the longer term... you need to build a financially sustainable business. 4. Know when to hold ‘em and when to fold ‘em. Be prepared to walk away from a project that is obviously unsustainable from an economic standpoint. Knowing your true worth and having a clear idea on what your required gross margin on a project must be to balance the risk involved will give you the confidence to draw that line in the sand, or know exactly how much wriggle room you have in the final stage of negotiation. 5. Grow at a sustainable rate. It is relatively easy to grow a construction business, at least in terms of revenue. Being overly aggressive in expanding the volume of work you take on is often done at the expense of profits and can lead to quality control issues, which further impacts profits. It can also put strain on your cash position,
because the faster a business grows, the more cash it needs to sustain that growth. Growing at a steady rate allows your production capacity and management systems to keep pace, thus helping to deliver steady profits and keeping your stress levels in check. So, those are my top five tips for building a financially sustainable business that will provide you and your family both a good living and enable you to have a life as well. There are other points I could have included, but in the interests of brevity, I have stopped at five. If you want to know the rest and have a conversation about how we can implement them into your business, email me at andy@tradescoach.co.nz and we can book a time.
Andy Burrows, Director of The Trades Coach and NZCB Partner. Andy is a business coach, who specialises in mentoring and coaching business owners associated with the construction industry. You can get in touch with Andy on 09 912 1901 or andy@tradescoach.co.nz
FROM NZCB —
NZCB Builders Travel to USA to Learn About the Latest International Trends
Over summer a team of New Zealand Certified Builders (NZCB) members travelled to United States to attend the NAHB International Builders’ Show (IBS) held at the Las Vegas Convention Centre. The 2020 Builders’ Show brought together more than 1400 top manufacturers and suppliers from around the world, showcasing the latest and most in-demand products and services. As part of the tour NZCB also did a group home builder tour with Pardee Homes in Las Vegas and TRI Pointe Homes in Los Angeles, both are part of TRI Pointe Group which is one of the largest homebuilding companies in the U.S. Their focus was creating experiences tailored to their customers – being in tune with their needs and desires. Both organisations focus on being young, forward-thinking companies that think in a fresh way about what a home can be. NZCB got to visit over six great park neighbourhoods in Las Vegas and Los Angeles, offering a diversity of architectural styles along with great amenities and open space opportunities. The focus was primarily on communal gathering spaces. So what do we mean when we say we saw an emphasis on “communal gathering spaces”? Their approach to developments was all about neighbourhoods and while some Kiwi developers design whole neighbourhoods, Pardee Homes and TRI Pointe Homes took it to a whole new level.
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There is no shortage of entertainment and amenities in their neighbourhoods. With multiple gardens, recreational centres, communal pools, dedicated barbecue areas and fully loaded gyms, these Americans know how to create a community. Even their fur babies are taken into consideration - with their own personal Bark Parks and lots of shaded areas. Some developments also include new school developments – from primary through to college. And while we can’t necessarily build all these things ourselves, especially if you’re only building one house, it would be great to see New Zealand property developers start to think about more than just the physical buildings they create. As sections get smaller and resources scarcer, it makes sense to create community amenities from the outset. It would be great to see our local developers consider the whole lives of their residents, in the same way that our best builders think about the effects of our buildings on the quality of life for their occupants. Suffice to say, we left the U.S. thoroughly inspired and look forward to bringing you more of what we saw and loved next month.
Karla Farrar Communications & Group Services Manager
Q&A from our NZCB Members North Island Kris MacGregor – MyHome Renovations Limited
What did you enjoy the most about the group home tours from Pardee Homes in Las Vegas and TRI Point Homes in Los Angeles?
What learnings from the IBS were you able to take back to your team in NZ?
Reviewing some of the styling and layouts and taking away some good ideas from this.
Lots, a couple of stand outs were - measuring the average labour slippage on our projects and adding this to future jobs. Also, asking our subbies and suppliers what could we do to improve our plans in order for them to quote better/easier.
South Island Richard Poff – RTP Builders Limited and NZCB President Canterbury What did you enjoy the most about the two-day tour at the IBS? The massive range of exhibits on offer. It was both exciting and daunting. I probably only looked hard at about 10% of what was to see, and likely missed some things I would have enjoyed. It was just so big. However, there were some products I will follow up on. Having the International lounge was great - somewhere to be able to have some quiet time without leaving the venue. What learnings from the IBS were you able to take back to your team in NZ? We aren't badly served with the product ranges we have here in NZ. There were some innovative items that I haven't seen in NZ, but I feel we aren't missing out on a lot. There just seemed to be a wider range of similar stuff. What did you enjoy the most about the group home tours from Pardee Homes in Las Vegas and TRI Point Homes in Los Angeles? Very professional presentations. Our hosts – right through to the site foremen – were open and obliging when asked questions. I never felt I was getting 'sales-pitch flannel'. The building sites were very tidy, although Health and Safety was pretty scarce. What learnings from the group home tours' were you able to take back to your team in NZ? Everything is about 'The Home'. Variations available from their plans are very limited, mainly around fit-out items. Purchaser doesn't get to walk through the home until it is finished. They provide nearly one bathroom per bedroom (i.e. 4 bedrooms generally got 3.5 bathrooms, 3 beds got 2.5, etc). Lots of emphasis on high studs, big doors, and a feeling of space. The houses fill more of the section, leaving little outside 'yard' to have to maintain. Big emphasis on community living, with small parks, sitting areas, rec centres, and junior schools, etc. being the norm.
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What learnings from the group home tours' were you able to take back to your team in NZ? That we frame a whole lot better than they do!
IN THE KNOW —
Concrete Industry on Track to Meet Emissions Reduction Target The New Zealand concrete industry is halfway towards meeting its target of a 30 percent reduction in carbon dioxide emissions by 2030. Concrete New Zealand (NZ) Chief Executive Rob Gaimster says the industry is fully committed to becoming net carbon neutral by the Government’s target date of 2050. A review last month by an independent auditor, Australian sustainability consultancy Thinkstep, found the New Zealand concrete industry is well placed to meet climate change commitments the New Zealand government signed up to under the Paris Agreement. “The independent review confirmed that the New Zealand concrete industry has reduced its emissions from cement by 15 percent between 2005 and 2018. “The emissions reduction occurred against a 13 percent increase in demand, which demonstrates how committed we are to sustainability,” Rob Gaimster says. “We are pleased that our initiatives to reduce cement’s carbon footprint have avoided about 400,000 tonnes of carbon dioxide emissions in 2018 alone.” The reduction in emissions has been achieved through a range of measures, including the use of waste products such as wood biomass and vehicles tyres to fuel cement kilns. Concrete NZ’s Sustainability Committee has recently met Climate Change Minister Hon James Shaw to share the ThinkStep results and discuss how concrete is part of the transition to a net zero carbon New Zealand by 2050.
Wood waste (biomass) at Golden Bay Cement's Portland works is used as a partial replacement for coal as kiln fuel.
“Our kids walk to school on concrete footpaths, they learn in schools that rest on concrete foundations, we receive healthcare in hospitals built from concrete, and many of us work in concrete buildings. Concrete also underpins our water and sewerage systems and will be crucial in the development of low energy infrastructure that includes electricity generation and public transport.”
“A game-changer for the industry here in New Zealand is that we have available naturally occurring minerals that can be used to replace a percentage of cement clinker*, which is the main ingredient of concrete production associated with carbon dioxide emissions. Waste from other industries can also be used to lower the cement clinker content in concrete and help to significantly reduce concrete’s carbon footprint.
“As we adapt to climate change and our planet warms, concrete will offer protection against fire and floods, while its mass will help regulate the internal temperature of buildings to reduce our reliance on energy intensive air conditioning.”
“At the same time, moving to new technologies, such as more energy efficient equipment and vehicles to produce and transport concrete, is part of our plan to be net carbon neutral by 2050.”
“Concrete structures act as carbon sinks, they can also be recycled, redesigned and repurposed. Concrete structures require little maintenance, and don’t rot or burn.
Rob Gaimster says concrete is the second most consumed substance in the world after water and is central to supporting communities and economies around the world.
“Our industry knows how important concrete is to everyone’s future wellbeing. That’s why we’re working so hard to reduce our carbon footprint and maximise the benefits of concrete,” he says.
Rob Gaimster also points out that the environmental benefits of concrete are significant.
* Portland cement clinker is a dark grey nodular material made by heating limestone and clay at a temperature of about 1400 °C. The nodules are ground to a fine powder to produce cement, with a small amount of gypsum added to control setting. Rob Gaimster – Rob is the Chief Executive of Concrete NZ, a recently formed association that supports industry to represent concrete as the material of choice for a modern and resilient New Zealand. This will be achieved through a consolidated voice that brings confidence, knowledge and leadership to members, industry and regulators. Contact Rob on 021 928 651 or rob@concretenz.org.nz
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IN THE KNOW —
Building a High Performance Sales Team What do purpose, values and goal setting have to do with the All Blacks, Harvard University and the largest study ever done on high-performing Sales Teams over the last decade? Let’s start by looking at the All Blacks. Five weeks ago I got an amazing insight into the All Blacks through hearing a keynote address by Sir Graham Henry at a conference where I was speaking on leadership. As you will probably know, Sir Graham was one of the most successful rugby coaches of all time. He coached the All Blacks to 88 wins in 103 tests, an astounding winning average of 85.4%. After my session, I talked with Sir Graham about what he considered best practice around goal setting, values and purpose in relation to high performance. His philosophies mirrored what I have been teaching for the past 27 years: that purpose-driven, values-led teams who set goals – and who make plans to achieve those goals – outperform all other teams of similar ability. Sir Graham also underscored the fact that goal setting and planning must be leadership led. World-renowned Harvard University has also taken a keen interest in understanding the benefits of goal setting. In a 1979 study on the subject, Harvard University asked all MBA graduates the following question: ‘Have you set written goals and created a plan for your attainment?’ Prior to graduation, it was determined that: • 84% of the entire class had set no goals at all • 13% of the class had set written goals but had no concrete plans • 3% of the class had both written goals and concrete plans Ten years later, Harvard University followed up with the 13% of the class who had set written goals but had not created plans. This group were making twice as much money as the 84% of the class who had set no goals at all. However, here’s the real kicker. When Harvard University followed up with graduates who had written goals and concrete plans, they were making ten times as much as the other 97% of the class. These results are further backed up by research on goal setting by high-performing salespeople. Dave Kurlan, CEO of the world’s premier sales research company Objective Management Group, shared his findings around the link between success and goal setting:
Jason Dinan and Sir Graham Henry
• 83% of elite salespeople (who make up the top 5%) have written personal goals while only 44% of weak salespeople (the bottom 50%) have written personal goals. That’s an 89% difference! • 76% of elite salespeople have a plan for reaching their goals while only 25% of weak salespeople have a plan for reaching their personal goals. That’s a 304% difference. In short, goal setting and concrete attainment plans – not good intentions – are proven techniques that pave the road to success. Many of you will be asking if goal setting will work in the building industry. My answer is a strong “Yes”. I have had the privilege of working with some of the top new home building sales teams in New Zealand, Australia and the USA, and have helped them outperform all others in their local markets using techniques just like this. Part of my one-day High Performance Sales Architecture Masterclass for the NZCB Conference and Expo in Wellington next year will be devoted to this most important topic. In the meantime, if you would like to talk to me, you can book a 30 minute meeting in my calendar online to discuss your goals and how I could help you grow your business, go to www.excc.co.nz
Jason Dinan –Jason is the Founder and Principal of Executive Coaching and Consulting and has 27 year of leadership experience developing high performing teams in 23 countries. He has guided various leading home builders in NZ and Australia to double and some to triple sales under 12 months.
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IN THE KNOW —
The Need for Good Information How often have we heard of Construction companies failing followed by the statement, “why”? The businesses are often expanding, have a number of projects on the go, and seem to be doing well. However, the Construction industry is often so project-focused that owners don’t check in on the integration of projects into the overall accounting systems and profit and loss results. Often companies have grown organically, and the Business Owner may be an excellent builder, but is not good at running a business. They use the same project management system they started with – it worked well in the beginning, why won’t it work well now? But often the project management system is an Excel spreadsheet that has been developed over the years and stands alone without integrating across to the financial data. No matter how good the Excel spreadsheet is, if it is not matching up to the financial records there is no one ‘set of truths’.
Monthly management reports are an import component of running the business, as these reports will provide the monthly results that shows how well the business performed to budget and the monthly surplus.
When there are two systems operating then there can be room for error. An integrated system that provides project profitability that also links back into the accounting and management systems, means that same data is being used to produce those reports rather than being replicated. In a simple example, if you take one invoice for $10,000 that is entered into the accounting system for three projects, and then when being replicated into the excel project system, one of those costs get missed, the profitability can be affected. Decisions are made on wrong information, and the outcome can be disastrous. Successful businesses do not grow and thrive on luck, they do so through good decisions based on strong, reliable and timely information. If you ever hear yourself say “how did it go?” your next question should be “how do we change?” as an integrated financial system will be providing the information as you go and alerting the business owner to potential problems. Disconnected systems do not work.
If the spreadsheet does not include all the costs of the jobs, such as overhead recovery, asset depreciation cost recovery, office administration expenses and other indirect costs, the profitability of the individual projects may be overstated and the quantum of the profits does not cover the indirect costs. For example, one project lasts a month and shows $20,000 being made after all direct labour and product costs, but the monthly cost of running the business is $25,000 so the business makes a $5,000 loss during the month. Monthly management reports are also an import component of running the business, as these reports (best prepared on a cash and accrual basis) will provide the monthly results that shows how well the business performed to budget and the monthly surplus. They are also a good benchmark to measure the success of the project reporting system side by side, as the management accounts capture all the financial information, and become the Master Data.
David Waine is a director of Tradeworx Limited. Tradeworx is a cloud integration company that works with a number of software suppliers to tailor the best IT solutions for you and your business to meet your business goals. For more information or to chat further please give us a call on 0800 651 900 or visit our website www.tradeworx.co.nz
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AROUND THE REGIONS —
Nick Farrelly NZCB President Auckland
On a Hot Summer’s Day…
AUCKLAND
With the sun beating down on another hot summer’s day in late February, a group of 112 golfers and more than 40 reps from Auckland Regional Partners met for another successful New Zealand Certified Builders (NZCB) Auckland Charity Golf Day at the Akarana Golf Course. Thanks to our sponsors, the teams were treated to some great food and beverages, fun games and great prizes. At one point even the neighbours on the golf course provided a bit of free entertainment on hole 16, much to the amusement of those around. Once everyone was back at the clubroom, the generosity of all involved really kicked in. Sponsors were super supportive providing some incredible prizes for our guest auctioneer ‘Riggsy’ from Hirepool to auction off and Auckland members responded by digging deep into their pockets. This year, the Auckland Committee chose to support two deserving charities – the NZ Cancer Society, and the Auckland Helicopter Trust. The efforts of all involved in the day, meant that close to $12,000 was raised and each charity took away a cheque for $5,965 to aid them in assisting New Zealanders in need.
Ready for another successful New Zealand Certified Builders (NZCB) Auckland Charity Golf Day at the Akarana Golf Course.
The top golfers on the day were also rewarded for their efforts with some great prizes from Shimano. The Bayside #1 team placed first, followed by the Fitzjames Construction team in second and the team from Resene Construction System took out third place. The coveted longest drive prizes went to Alan Thomas and Brett Mathers, with Dougall Bell, Lyal Dix and Daniel Wilson all taking out the various nearest-the-pin awards. A huge shout out to all the Auckland Regional Partners, supporters and members that turned up and helped make the day such a success. A big thank you also to Carol FrisbyShilton and Peter Headland from the Auckland Committee for their dedication and organisation of the day.
A bit of fun along the way! Tom from the QBS team was the first to chip in the PlaceMakers smallest hole game.
And lastly, our thanks to Rajnesh Goudon and Steven Heyes from the Akarana Golf Course for hosting the day and to Jono Clarke from Foodsters for the superb platters served up in the clubrooms. We look forward to another successful day on the golf course again next year!
NZCB Auckland President Nick Farrelly (right) presenting Cancer Society Auckland/ Northland Chief Executive Officer Andrew Young with a cheque for $5,965 to aid them in assisting New Zealanders in need.
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AROUND THE REGIONS —
Phill Claffey NZCB President East Coast
Gift of Garden Bench Seats Delights
EAST COAST
Gisborne East Coast Cancer Society is thrilled to have new outdoor seating at their offices thanks to the donation of two wooden bench seats gifted to them by Certified Builders Gisborne.
Sitting pretty: Gisborne East Coast Cancer Society centre coordinator Lianne Jenkins and supportive care coordinator Azure Hyde are getting plenty of use out of the new bench seats donated by Certified Builders Gisborne. They are pictured here with Certified Builders Gisborne president Phill Claffey and Baxter MacKay, who won last year’s apprentice builders competition. Picture by Paul Richard.
The seats were built during a NZ Certified Builders’ competition last year where seven building apprentices were challenged with building the best bench seat in a limited time period. Baxter MacKay won the Gisborne challenge and went on to represent the region at the national finals held in conjunction with the Certified Builders Conference in Christchurch. President of Certified Builders Gisborne Region Phill Claffey said the Cancer Society was “stoked” with the seats. “The day I dropped them off to Lianne (Jenkins, centre coordinator) and the ladies they already had plans on where and how to set them up for the people they care for.”
He said they were running another event in April this year and were looking forward to donating the finished projects to another deserving charity. NZ Certified Builders was formed in 1998 by a group of trade qualified builders and now has more than 2,500 members. These Builders saw the need to create a group that would protect customers from unqualified builders and unethical practices and promote excellence in the building industry. As a minimum criteria all members must be trade qualified to join the association. Article published in the Gisborne Herald – 08 Feb 2020
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AROUND THE REGIONS —
Shane Ririnui Business Development Manager – North Island
A Quick Update From My World… Kia ora NZCB whanau New Zealand Certified Builders’ (NZCB) regional annual general meetings (AGM) are well and truly underway and I have had the privilege of attending most in the North Island. It is good to see strong attendance from members, who are voicing their opinions and thoughts on matters affecting NZCB, the regions and our industry. This is important because if we, at NZCB National Support Office, are advised of these opinions and concerns it allows us to take action and respond. I would like to thank and acknowledge the support of the regions’ committees at these meetings as well.
It is good to see strong attendance at the AGMs from members, who are voicing their opinions and thoughts on matters affecting NZCB, the regions and our industry. I was also invited to support and take part in the Auckland golf day fundraiser. Auckland Golf Day was a very successful event with warm, humid weather making the reward of a cold beverage on the 19th hole very well received. Regional Partners’ support and members’ participation was excellent and resulted in an abundance of prizes auctioned off to raise money. I would like to acknowledge the Auckland Regional Committee on a well-organised event. The Building Trade Professionals (BTP) workshop series ran well. The topic - Payment Claims and Payment Schedules - was delivered by Geoff Hardy (Martelli McKegg Lawyers) who designed our building contracts. Geoff gives legal advice to the NZCB Board of Directors and the Association and has supported NZCB for many years.
Like to experience the workshop? If you were unable to attend, or we didn’t visit your region, please contact your regional president and have them contact either myself (North Island) or Nick Matthews (South Island) to deliver a light version of the workshop at your next Trade Evening. With the COVID-19 New Zealand Government directive, the NZCB annual AGM, Conference and Expo, Regional and National Apprentice Challenges, and all NZCB events and meetings have been either put on hold, postponed to a later date or have been cancelled. This historical event of a ‘national lockdown’ is going to be a challenge for most, but please do your part to keep you and your whanau safe and healthy. Take the time to rest, enjoy your family’s company and perhaps plan for what you will do when we all come out of the lockdown so that you can hit the ground running effectively. See everyone on the other side. Ka kite anō.
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NORTH
AROUND THE REGIONS —
Nick Matthews Business Development Manager – South Island
The Power of Branding
SOUTH
As a proud New Zealand Certified Builders (NZCB) member, do you ever see other builders displaying the old Certified Builders Association of New Zealand (CBANZ) logo and wonder why they haven’t updated? It could be due to several reasons, but the most common response I get is “I just haven’t got around to it”, which is normally followed by “why – what’s the point?” Well, it’s been almost four years since the changeover... But the point is, as business members, you pay an advertising levy to enable you to use the NZCB brand, positioning your business alongside a known and trusted membership organisation. If you’re still using the old CBANZ logo, then members of the public – potentially your next clients – are unlikely to make that connection. So, why wouldn’t you update the logo?
No doubt we’ve all had to explain the difference between ourselves and Registered Master Builders, only to be told “I’ve never heard of NZCB”. I believe that if all business members of NZCB displayed the correct logo and image on vehicles, trailers, site signs, websites, social media, letterheads, signature blocks and clothing, our brand would be the stronger of the two. The power of branding is strength and unity. Now’s the time to update and fly the flag for NZCB.
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Business members can download the NZCB logo from the Members’ Toolshed for free, as well as our brand guidelines to pass on to your preferred local supplier. You don’t have to stick with the standard red version, there are a range of options to ensure it complements your own business logo. If you have any questions, please contact the team at National Support Office on 0800 237 843. Did you miss the last BTP workshop featuring Geoff Hardy? Don’t panic, a recorded session will be available for you to view on the Members’ Toolshed. Plus, in my travels I’ll be presenting the best bits from the workshop, including the Q&A session. See you in the regions.
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FROM NZCB —
Grant Florence Chief Executive
Changes to NZCB Events for 2020 Due to the fact that New Zealand is entering into further unchartered and uncertain times and the need to keep our members and staff safe as well as the Government’s announcement of moving into COVID-19 level 4, the following decisions have been made:
NZCB ANNUAL CONFERENCE AND EXPO
NZCB APPRENTICE CHALLENGE All nationwide regional events and the national final for the New Zealand Certified Builders (NZCB) Apprentice Challenge 2020 have been cancelled. Next year, the nationwide regional challenges will take place on Saturday 10th April 2021, with the national final taking place at the NZCB Conference and Expo on 11th and 12 June 2021 at TSB Arena in Wellington.
After examining a range of options, we have decided to postpone/transfer this year’s 22nd Conference and Expo until 10th–12th June 2021. This will still be held at the TSB Arena and Shed 6, in Wellington. We regret taking this action and I would like to thank our stakeholders’/members’ and staff for their work and support on this major event up until this point. I am sure the 2021 event will be bigger, brighter and more enjoyable for us all.
ANNUAL GENERAL MEETING The Board is considering the options on how/were this year’s 22nd Annual General Meeting (AGM) will be held and further information will be provided in due course.
NZCB CONSTITUTION CHANGES AND DIRECTOR NOMINATIONS/ ELECTIONS These processes will continue to be held over the next one to two months as they are able to be conducted without face to face contact. More information on this in due course.
REGIONAL AGM’S AND REGIONAL MEETINGS
This is a fast-moving situation and we will keep you up to date on these matters as much as possible. Best regards and stay safe.
All NZCB region AGM’s and regional meetings/training events have been suspended, with a further review of this status at the end of May 2020.
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HEALTH AND WELLBEING —
Karla Farrar Communications & Group Services Manager
Coping With Stress We wanted to pass along our thoughts and advice during these trying and uncertain times. Communication is key right now Your employees, your clients and your prospects need you to keep the lines of communication open: • Your employees need your leadership to assure them that you will all get through this together • Your clients need to know that you are taking all necessary safety precautions and will update them when you know how external circumstances will impact their schedules • Your prospects need to know that your company is moving forward and will continue building after the crisis is over • Send a message to your customers, trades and vendors to let them know how your organisation is working through this.
Keep Marketing • Now may not be the best time to be selling, but it is the right time to be marketing in appropriate ways • This crisis will leave opportunities in its wake and that is the most important time to be marketing • Do not discount your services to try to get business at this time.
Pick up the phone and use video conferencing
Contractors always tell us they are too busy putting out fires to spend time working ON their business or that they don’t have the time for work-life balance. Take this opportunity to focus on these important aspects.
Be Informed, Stay Connected and Keep Positive These are trying and uncertain times, here are things you can do to help manage your concerns: • Stay informed, but don’t spend too much time watching the news, which can quickly become anxiety-producing. Instead, please refer to the official NZ Government COVID-19 website www.covid19.govt.nz and social media channels for accurate information on COVID-19 • Connect with your peers – now is the time to reach out to your colleagues in construction groups, professional networking groups and your local trade partners • Be optimistic about the long term and focus on shortterm solutions. New Zealand Certified Builders National Support Office is closed for the moment BUT we are still only a phone call or an email away – we are all available to help you navigate through this challenging situation. Please continue to reach out to us in the coming days and weeks if you need to talk. We will all get through this together!
We are all being barraged with emails and social media notifications from every major business and organisation about COVID-19. If at all possible, pick up the phone or set up a video conference call to engage a personal touch. • If you send an email, follow-up with a phone call • Do not use inability to meet face-to-face as an excuse to email a proposal to a prospective client. Set up a Zoom meeting so you can see their response as you make your presentation.
Seize the moments With trips postponed and meetings cancelled, use these new found openings in your calendar to schedule time to: • • • •
Work on business development plans Create new marketing strategies Spend more time with the people you are in isolation with Get some exercise or more sleep.
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Feeling stressed and need to talk to someone? Employee Assistance Programme (EAP Services) is a professional nation-wide service paid for by NZCB. NZCB will cover the first 3 x sessions for FREE for you and your staff. It is to assist you if you are experiencing any personal or work related difficulties. More information can be found under the ‘HEALTH AND WELBEING’ section of the members’ Toolshed or by emailing karla@nzcb.nz
HEALTH AND SAFETY —
How to Manage and Report Accidents at Work If an accident happens at work and your first thought is paperwork, you’re doing health and safety wrong. Reporting accidents and near misses is vital to good business, and that begins with a ‘safety differently’ approach. A prevention before cure attitude. One that sees accidents reported immediately and investigated thoroughly. Time and time again we see accidents happen and fingers pointed. What is absolutely vital for your business is a health and safety culture that is open, honest and educated. How do you nurture this culture? You need the right tools.
Where to document and register all accidents You don’t need to over complicate matters here. Accidents and near misses should be registered in one convenient place that is easy to manage and draw upon when needed. The HazardCo app has been designed with just this in mind. All you need to do is login, report who was involved, if medical treatment was required and the details of what happened. The HazardCo accident support team are also on hand 24/7 to help you out. All of this information is then stored as an accident register on the HazardCo portal for you to access at any time.
What accidents should you report You should report any health and safety accidents or near misses that happen at work. This can be accidents that affect you, your staff, or anyone on site. From minor to major, everyone deserves the right to know any threats relating to them in the workplace. Those affected by the accident are also entitled to a fair and formal record of what happened.
Why you should be reporting accidents Every single worker plays a part in protecting ourselves and one another in the workplace. By reporting accidents you are helping identify areas where you can work together to improve health and safety, and potentially save lives.
Learning from accidents We understand that it’s unrealistic to expect no accidents. They can – and do – happen. What’s important is that when they do, workers take time to review and learn from them. Depending on the complexity of the accident, learning from it might be as simple as meeting with the team afterwards to figure out what went wrong, and what can be done to stop it from happening again.
Not your job? Yes, it is. And that’s why we are so proud of what we do. The HazardCo app and portal puts health and safety in everyone’s hands, so everyone is protecting their workforce and working safely. People often think of accidents as something separate to a normal way of working and how work gets done. The fact is accidents often happen because of the way things get done. By reporting and investigating an accident, you will find the cause, but you are also likely to identify other areas where improvements can be made. Investigations aren’t about blame and punishment but learning and improving. No workplace is perfect, and failure will occur. Let your workers know this, and that blame is off the table. This is about making sure everyone is safe and able to get on with the job at hand.
Educate to empower and enable your workforce to #SortYourSafety today.
The HazardCo Team. As your trusted safety partner, we provide you with the tools and support you need to #SortYourSafety. To find out how HazardCo can benefit your site, call us on 0800 555 339 or visit hazardco.com
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HEALTH AND WELLBEING —
A Guide to Helping Your Mates A new pocket guide about how to have conversations with mates and colleagues about mental health has some top, easy-to-follow tips. And while some people worry if they are qualified to help someone who might be struggling, it’s easy to lend an ear, listen, and have a conversation with someone says Paul Lynch, a guy who knows what it’s like to do it tough. The Christchurch carpet and vinyl installer lost his brother Brett to suicide in 2013. It took him a while to shake off resulting anger and darkness that he felt, but he did, and he wrote the book Suicide; Aftermath & Beyond about it. He has made it his mission to help people in the trades talk about things that are getting them down, and he says the new guide is a great tool for this. Paul says people don’t have to be a counsellor or a therapist to help, they just have to take time to listen. “It’s not like we don’t care or want to check up on our mates, it’s just we often don’t know how to. “In my experience, 99 times out of a hundred, all that’s required is a conversation. It’s that simple act of letting people talk or share something they might be going through.”
The key messages in the pocket guide are: • Be approachable – don’t judge and don’t try to have all the answers. • Be empathetic – try and put yourself in their shoes. Or boots. • Be willing to listen – give them your full attention and let them know it is confidential between you and them. Auckland electrical contractor Dave Burt uses a question to break the ice with people that is one of the suggested phrases in the guide: “What’s happening in your world?” One of the three winners of the Kalmar Mental Health and Wellbeing Award last year, along with Paul Lynch and the team from The Switched On Group, Dave put money from his book towards the pocket guide and he says it is full of good advice.
The pocket guide has ideas for dealing with people who may be having a rough time.
The free pocket guide has been created by Dr Kate Bryson of Axon Consulting, one of the key researchers who worked on Site Safe’s study into suicide in the construction sector last year, in consultation with industry workers. Site Safe is pleased to be able to offer the guide in conjunction with Construction Health and Safety NZ (CHASNZ), the Mental Health Foundation and Mates in Construction.
THE GUIDE IS FREE FOR DOWNLOAD AT https://www.sitesafe.org.nz/guides-resources/tools-for-wellbeing/ mental-health-pocket-guide/
“You may not be aware; but every one of us possesses a very powerful gift. You may not know that you have this gift, but trust me on this, you do – it is the power to give and provide hope. “Having experienced depression, I can tell you hope is something I will never take for granted again. For those dealing with a mental health issue, hope is all-powerful.” Bill O’Byrne, Site Safe NZ. Site Safe is a not-for-profit, membership-based organisation that supports a culture of health and safety in New Zealand construction.
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NEXT GENERATION —
INDUSTRY TRAINING ASSOCIATION BUILDING
New Zealand’s Most Employable Apprentices
ITAB Apprentice Completions
Congratulations to all the ITAB Apprentices who have recently completed their National Certificates in Carpentry!
Recent graduates from Northtec – Future Trades
Ara Institute of Canterbury Jarred Turnbull
LOC Construction Limited
Michael Ryan
Browntown Builders Limited
Northtec – Future Trades Paul Noesgaard Dante Busby Rolando Llido Tait Mehrtens Mitchell Reader Baxter Mosely Kyron Vette-Wright Jacob Cherrington
Kerr Construction Whangarei Limited MJ Quality Builders Limited Scott Hudson Building MJ Quality Builders Limited Duder Construction Limited Pete Brown Builder Limited C J Building Services RHJ Builders Limited
Jacob Cherrington.
Otago Polytechnic Charles Lucas
Baxter Mosely, left; and Pete Brown his employer, right.
Dunlop Builders
UNITEC Institute of Technology Ofa Ahosivi
Rapid Builders and Renovators Limited
Andrew Lennon
Tiger Building Contractors Limited
Sandeep Pal
Inline Build Solutions Limited
Lawrence Baldock
J Steuart Builders Limited
Left to right: Neville Sanders, Etienne Gross, graduate Paul Noesgaard, Mark Pearson and Pete Brown.
Universal College of Learning (UCOL) Ethan Bloemen
Craig Macleod Construction Limited
David Hallett
Noel's Building
Perry Mavor
Noel's Building
Rolando Llido.
Tait Mehrtens.
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NEXT GENERATION —
Brian Dillon AST Trust Chairman
An Unknown Future Hello all. It barely seems like we had started the year, and here we are in the second quarter already. Already some significant issues have arisen, some of which we anticipated – i.e. increased politicising of issues – and the big one we couldn’t have anticipated – COVID-19. Clearly that is going to have a significant impact on us, particularly socially and economically.
The trustees committed to continuing the activities of the AST. Providers are working to shift as much delivery of training to remote/online as they can. At the time of writing we have only just gone into lockdown so the extent of this impact is very much unknown.
For a quality result, choose an AWCI Certified Business for professional interior lining and finishing
It was disappointing to see the New Zealand Certified Builders (NZCB) Apprentice Challenge 2020 cancelled. It was an absolutely necessary action, of course – let’s hope it runs again in 2021 with even more interest generated. We had our first Apprentice Scholarship Trust (AST) meeting of the year in February, where we started mapping out some of how AST and Industry Training Association Building (ITAB) will work as one entity. The trustees committed to continuing the activities of the AST, including hardship grants, and support for the NZCB Apprentice Challenge. It is at time like this that we prioritise what is important to us – keep yourselves and your families safe.
TECH TIPS —
Why and How You Should Be Carrying Out On Site Inductions Construction site inductions are required on every construction site. That’s the way we like it. And you should too.
Why? For you, for your team, for the families waiting for you at home. Safety first, always. A site induction is a way of ensuring workers are aware of the risks and hazards that are involved in the job at hand, conducted at the start of each new project. Because no two sites are the same. Each project comes with different teams, arrangements, types of work, environments, hazards, activities and layout.
The HazardCo app allows you to conduct a site induction easily and digitally – there for your whole team to see whenever they need to. Our site induction features include a QR code that allows everyone to scan onsite and acknowledge and read the site specific safety plan. With all relevant information for your site induction in one convenient place, workers know what the specific arrangements and rules are in place for the site/task they are working on.
Everyone on site deserves a clear understanding of the risks involved. Site inductions are in place to protect people, so treat them with the respect they deserve.
Now?
How?
You betcha. Carrying out site inductions the right way can save admin, heartache and lives.
We understand that there isn’t always a supervisor on site to carry out an induction. That’s why we put health and safety in everyone’s hands.
Contact HazardCo today to see how we can help you and #SortYourSafety. The HazardCo Team. As your trusted safety partner, we provide you with the tools and support you need to #SortYourSafety. To find out how HazardCo can benefit your site, call us on 0800 555 339 or visit hazardco.com
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TECH TIPS —
Builders Need to Reach for the Cloud Builders who want to improve their businesses using tech often ask us: “what is the Cloud?” Our answer is simple: “the Cloud will help you run your business more efficiently and profitably.” In a nutshell, the Cloud stores all the information you put into your construction software – whether that’s Tradify, NextMinute, CoConstruct or one of the many available apps. Storing all your information this way has many advantages, including making it easier for you to manage projects and get instant visibility of how your business is performing.
Five ways the Cloud will help you To benefit from the Cloud, it’s worth choosing software designed specifically for builders and trades. If you’re not technically minded, it can save you time and money getting independent advice on which app will suit your business best. Once you’ve selected the right app and you’re set up with it, here’s how construction software in the Cloud can benefit your business:
Cloud tech is cost effective Cloud software scales to the size of your business, so you only pay for what you need, which makes it highly cost effective.
Save time on admin Information you input into your app transfers instantly to all your users, so there’s no time wasted on double entry.
Improved collaboration You and your team all work from the same integrated platform. Everyone having the same real-time information improves communication and boosts overall efficiency.
Tech on the go The Cloud gives you total mobility, meaning you can effectively manage your business wherever you have internet access, anywhere in the world.
Build your tech toolbox
Secure and robust
Have you been wondering how technology could improve your business but not sure where to start? Come along to ATEED’s next workshop and gain expert advice on how to ‘Improve your business using technology’!
All of your information is safe, secure and backed up. You also benefit from automatic software updates to keep things running smoothly.
This three-hour workshop will be presented by Anna Brooks from FREE UP, who is a technology expert for Builders and Trade businesses. For more information and how to register, contact Anna on anna@freeup.kiwi This Tech Tip was supplied by FREE UP – the go-to tech advisor for builders and trades. Call to get a FREE 30-minute consultation for advice on the right job management app for your business, call Anna Brooks on 021 083 96910 or visit www.freeup.kiwi
We look forward to seeing you there!
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NEWS BITES
News Bites
NEW PRODUCT
James Hardie Range Extension – Stria™ Cladding James Hardie responds to customer demands with the new Stria™ Cladding – 14mm 2700 x 405mm. The new 2700mm length will provide greater design flexibility for architects and designers, while also supporting less wastage and a reduction in labour required on site through cutting panel to desired sizes. This will enable greater cost efficiencies on projects for builders.
• CodeMark certified for CLD™ installation • 15 year product warranty • Dimensionally stable • Engineered to stand up to harsh conditions, including coastal conditions • The interlocking edges allow for quick and easy installation • Can be installed horizontally or vertically • Wide panel format allows faster installation • Can be painted any colour, even the darker shades
• Cost effective and long lasting • Resistant to damage from moisture and rotting • Up to 60 minute fire resistance rating (FRR) can be achieved when installed as per the James Hardie Fire and Acoustic Design Manual • Classified as noncombustible material • Low maintenance Product code: 405109 For more information visit www.jameshardie.co.nz
NEWS
At Your Fingertips. Study Construction Online! Are you already working in the residential or commercial construction sector? Do you want to become a construction manager or quantity surveyor? Now you can make it happen with TANZ eCampus. The new online New Zealand Diploma in Construction, with strands in Construction Management and Quantity Surveying will help you become a leader in construction.
Developed in collaboration with industry, this new online course combines hands-on, real life experiences and virtual reality simulations to cement your on-the-job training. Learn more at www.tanzecampus.com/ construction/ or enquire on 0800 328 269.
This survey is part of a study of the builder-client relationship so workers in the construction industry can be better supported. This research is funded by the Building Research Levy and is supported by NZCB, RMBA, CHASNZ, Switched On Group and John S McDonald Builders Ltd.
NEWS
Special Offer for NZCB Members’ From RedQS Stuck at home and catching up on admin? Special offer for New Zealand Certified Builder fans of redQS for our online pricing training!
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You can find more information about the survey and complete it on any mobile, tablet or desktop device at https://tinyurl.com/builderclientsurvey Use discount code “stuckinside” for a massive 50% off for first 100 builders https://perfectpricingprogramme. thinkific.com/courses/perfect-pricingprocess
NEWS
Smart & Easy Online Compliance System for LBP Tasks SmartBuild is New Zealand’s first ever online portal to provide all the Building Code’s compliance tasks required of LBPs during a building project. All in one place. Offering a variety of smart features and automatic functions, SmartBuild is easy to use and ensures highly accurate capture of task details. SmartBuild offers three product options including: • SmartBuild Lite, Free to use and designed for solo LBP operators, or those working for other LBP’s • SmartBuild Plus, a pay-per project management system ideal for larger building and design companies that use multiple LBP’s. • Easy to use LBP Skills Maintenance points recorder for keeping on top of the licence tasks SmartBuild’s many product features include: • LBP forms customised to each LBP’s licence class • Multiple tick box selections that describe everyday RBW tasks • Project details auto populated and shared with other LBP’s and stakeholders • Automatic reconciliation of Design and Trade RBW sections • Dashboard function allows quick and easy reviews, updates and sharing of documents and photos • All forms and project documents stored in one place for 10 years, and accessible anytime from any device.
NEWS
Are You a Builder, Foreman, Building Business Owner Who Deals With Clients? We want to hear from you! Are residential build clients the highlight of your day or the most stressful part of your job? We have partnered with Axon Consulting to conduct research to uncover the good, the bad and the ugly of working with residential building clients and we would like to hear from you. If you complete the confidential survey you will go in the draw to win a $300 trade voucher. The survey takes about 10 minutes. It asks questions about: • communication with clients • what it’s like to build homes for a new generation of customers • what impact disagreements with clients might be having on your mental health • how stressed you are at work
Interested? The survey is now open up to 30 April 2020. You can find more information about the survey and complete it on any mobile, tablet or desktop device at https://tinyurl.com/ builderclientsurvey
SmartBuild. Easy, accurate building compliance www.smartbuild.co.nz
NEW PRODUCT
Armando Vicario Glam Basin Faucet in English Gold
Franklins to Launch New Italian Tapware Range in June Franklins is launching a new Italian Designed and manufactured tapware brand – Armando Vicario. There will be a range of bathroom tapware, kitchen tapware and a shower program all stocked in up to 10 finishes including Tabacco, Old Brass and Graphite. You can expect to see these spectacular products hitting New Zealand in June 2020. Ask for more information at your local Franklins branch or visit www.franklins.co.nz
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Do your homework before you build
IN THE MEDIA —
The Press, Christchurch 04 Mar 2020
PMCA licensed copy. You may not further copy, reproduce, record, retransmit, sell, publish, distribute, One builder’s experience: ‘‘There have been page 10 - 944.00 cm² Supplements, share or store this information instances my client has phoned who 39,758 (MTWTF--) without the prior written consentwhere of Metroa- mate circulation the Print Media Copyright Agency. and he has told them exactly what has is a builder, Phone +64-4-4984487 or email to further be done, without even stepping on site. info@pmca.co.nz for ‘‘The client has then proceeded to tell me I am information.
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ID 1241284889 projects of your life. So, here at Homed we have summarised the advice we’ve been privy to over the years – the key points builders, tradies and experienced homeowners wish you knew before you built.
INDEX 1
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Do your homework before you build
Sort out the contract
This is a legal requirement for every job worth more than $30,000 (including GST). The contractor should give you information about his or her skills, qualifications, licensing status, and the insurance or guarantees they provide (this is called a disclosure statement), and a checklist that outlines stages of the build. The Ministry of Business, Innovation and Employment (MBIE) has a booklet worth reading – Know Your Rights: A homeowner’s guide to the consumer protection measures when building or e’ve all heard of bridezilla. We also renovating. don’t want to be a ‘‘buildzilla’’. And yet getting your new home right Realise thatiscosts mayone beofhigher probably the most important than you think projects of your life. As in other areas of life, it is almost always the case So, here at Homed we have summarised the that the cheapest is not the best, so price cannot be advice we’ve been privy to over the years – the key the sole factor in selecting your builder/building points builders, tradies and experienced company. homeowners wish you knew before you built. Homeowners may think a quote seems high, without being fully aware of exactly what is Sort outThe thecosts contract involved. will most likely include travel This is a legal requirement for every job worth time and time spent buying materials. more than $30,000 (including GST). The contractor It’s essential to have funds in reserve – having should give you information about his or her skills, contingency in the budget of at least 10 per cent qualifications, licensing status, and the insurance allows for peace of mind. or guarantees they provide (this is called a Design variations also cost. If they are disclosure statement), and a checklist that outlines significant, they may require amendments to the stages of the build. building consent, with the processing costs that The Ministry of Business, Innovation and come along with that. Try to limit the changes you Employment (MBIE) has a booklet worth reading – make after the build contract is signed – those Know Your Rights: A homeowner’s guide to the extras add up. consumer protection measures when building or renovating.
It’s a big project, so here are some of the things builders wish you knew before taking on a new home build.
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Top11ofoftips from NZCB builders 3 3 PAGE PAGE
■ Build trust before you build anything. Check your builder’s qualifications and previous customers’ references. Establish good lines of communication with your builder from the outset. ■ Plan in as much detail as possible. Once under way, a change of plan often means delays and costs. Fine if you’ve changed your mind, frustrating if it’s due to something you never thought of. Make the most of your builder’s expertise and advice, before it’s too late. ■ Plan for strength and warmth. Remember that, first and foremost, a home is a shelter. Investment in seismic resilience is preventive insurance, and energy efficiency is mostly about heat absorption and retention. ■ Ask for a fixed price, but have funds in reserve. Always keep some contingency in your budget. You’ll sleep better. ■ Beware of fads in design and materials. What’s more important – wowing your friends at the housewarming or looking good and working well in 20 years? ■ Get the paperwork sorted. Always ask for a written building contract (which is required by law for jobs over $30,000) and ideally a building guarantee. Check the fine print on both – make sure your building guarantee is worth the paper it’s written on. – Grant Florence from the New Zealand Certified Builders Association of New Zealand
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Just because your friend is a builder, you may still not know quite as much about your builder’s job as he or she does. One builder’s experience: ‘‘There have been One builder’s experience: ‘‘There have been instances where my client has phoned a mate who instances where my client has phoned a mate who is a builder, and he has told them exactly what has is a builder, and he has told them exactly what has to be done, without even stepping on site. to be done, without even stepping on site. ‘‘The client has then proceeded to tell me I am ‘‘The client has then proceeded to tell me I am doing the job wrong.’’ doing the job wrong.’’
Build Buildwith withresale resalein inmind mind New Zealanders turn over home ownership at a
New Zealanders turn over home ownership at a startling rate – the average varies over time but is startling rate – the average varies over time but is usually between four and six years. So, although usually between four and six years. So, although this may be your dream home right now, and this may be your dream home right now, and you’re hoping to be there forever, there are often you’re hoping to be there forever, there are often life change reasons that force you to sell. life change reasons that force you to sell. So don’t choose anything too out of the So don’t choose anything too out of the ordinary. Media room? Probably yes. Three wall ordinary. Media room? Probably yes. Three wall built-in aquarium in the living area? Won’t be built-in aquarium in the living area? Won’t be much of a selling point. much of a selling point. It’s also important to bear in mind the prices in It’s also important to bear in mind the prices in your neighbourhood and not add so many your neighbourhood and not add so many upgrades that you overprice for the area. upgrades that you overprice for the area.
Realise Realiseititwill willtake takelonger longerthan thanyou youthink think You may be hoping to be in by Christmas, but there
You may be hoping to be in by Christmas, but there are a lot of moving parts here – expect delays. are a lot of moving parts here – expect delays. Because most houses are bespoke builds, various Because most houses are bespoke builds, various tradies are required at different times and can be
INDEX 1
44
DAVID WALKER/STU
FROM NZCB —
NZCB National Partners NZCB is proud to partner with the following companies who align with our Association and give NZCB members access to a wealth of expertise and support throughout New Zealand. COMPANY
WEBSITE
COMPANY
WEBSITE
Abodo Wood Ltd
www.abodo.co.nz
NZ Foam Ltd
www.nzfoam.co.nz
Altus NZ Ltd
www.altus.co.nz
Open2view
www.open2view.co.nz
Anzor Fasteners Ltd
www.anzor.co.nz
P W Systems Ltd
www.deckmasternz.co.nz
APL Window Solutions
www.aplnz.co.nz
Pacific Steel (NZ) Ltd
www.pacificsteel.co.nz
Assa Abloy New Zealand Ltd
www.assaabloy.co.nz
Paslode New Zealand
www.paslode.co.nz
Bowers Brothers Concrete Ltd
www.bowersbrothers.co.nz
PlaceMakers
www.placemakers.co.nz
Brand Collective
www.elwdworkwear.com.au
Pro Clima New Zealand Ltd
www.proclima.co.nz
Building Recruitment Ltd
www.buildingrecruitment.co.nz
Productspec Ltd
www.productspec.net
Bunnings Ltd
www.bunnings.co.nz
Proven Systems Ltd (DVS)
www.dvs.co.nz
CS For Doors Ltd
www.csfordoors.co.nz
Quotable Value Ltd
www.qv.co.nz
CSR Building Products (NZ) Ltd
www.csr.co.nz
Curtis Architecture
www.curtisarchitecture.co.nz
Ramset New Zealand
www.ramset.co.nz
ECKO Fastening Systems
www.ecko.co.nz
Rave Build Management
www.ravebuild.co.nz
Fairview Systems Ltd
www.aslnz.co.nz
Red LBP Ltd
www.redlbp.co.nz
Franklin Plumbing and Builders Supplies Ltd
Red Quantity Surveying 2017 Ltd
www.redgroup.nz
www.franklins.co.nz
Red Stag Timber
www.redstag.co.nz
Free Up
www.freeup.kiwi
Renault New Zealand
www.renault.co.nz
Futurewood
www.futurewood.nz
Resene Construction Systems
www.reseneconstruction.co.nz
GTEE.co.nz
www.gtee.co.nz
Resene Paints Ltd
www.resene.co.nz
HazardCo
www.hazardco.com
Rosenfeld Kidson & Co. Ltd
www.rosenfeldkidson.co.nz
Hilti (New Zealand) Ltd
www.hilti.com
Sellwood Products Ltd
www.sellwood.co.nz
HomePlus
www.homeplus.co.nz
Senco Brands (NZ) Ltd
www.senco.nz
Independent Building Supplies
www.ibs.co.nz
SIKA New Zealand
www.sika.co.nz
INTAKS NZ Ltd
www.intaks.co.nz
Jacobsen Creative Surfaces Ltd
www.jacobsens.co.nz
Simx Ltd
www.simx.co.nz
James Hardie New Zealand
www.jameshardie.co.nz
Soudal Ltd
www.soudal.co.nz
Jesani Distributions Ltd
www.jesani.co.nz
Steel Frame Solutions
www.steelframesolutions.co.nz
JSC Timber
www.jsctimber.co.nz
TANZ eCampus
www.tanzecampus.com
Karcher New Zealand
www.karcher.co.nz
Tax Management New Zealand
www.tmnz.co.nz
KLC Ltd
www.klc.co.nz
The New Zealand Building Economist
www.nzbe.co.nz
Kopine
www.kopine.co.nz
The Trades Coach
www.tradescoach.co.nz
Laminex New Zealand
www.laminexnewzealand.co.nz
Thermakraft Ltd
www.thermakraft.co.nz
Marley New Zealand Ltd
www.marley.co.nz
Tradeworx
www.tradeworx.co.nz
Marshall Innovations Ltd
www.mwnz.com
USG Boral New Zealand
www.usgboral.co.nz
Matley Ltd
www.matley.co.nz
Viking Roofspec
www.vikingroofspec.co.nz
MiTek New Zealand Ltd
www.miteknz.co.nz
Warmup NZ Ltd
www.warmup.co.nz
New Zealand Visa Connections
www.nzvisaconnections.com
YourQS Ltd
www.yourqs.co.nz
45
WE KNOW OUR CUSTOMERS BY NAME, NOT BY THEIR ACCOUNT NUMBER Whether it’s a deck in Dannevirke or a new build in Nelson, every project at ITM gets treated like it’s one of our own. That’s because we’re a network of independently owned stores, run by experienced owner-operators with a handson approach to helping you get the job done. That’s how we like to do things a local business looking after local people.
Find your local ITM store at www.itm.co.nz