NZCB InHouse Magazine August/September 2017

The off icial magazine of the New Zealand Certif ied Builders Association

August/September 2017 — NZCB Taupo tees off for Cystic Fibrosis

Pg 9

What’s in the pipeline for LBP?

Pg 36

Centrespread —

The New Home of NZCB Pg 22

GIB RocTape ®

A new way to reinforce flat plasterboard joints.

New GIB RocTape® is a nonwoven matt fibreglass joint tape specially created for great performance. — — — —

Makes the joint mechanically strong Faster drying times No entrapped air bubbles under the tape No swelling or shrinkage due to water absorption — Eliminates inadequate compound under the joint tape, reducing tape adhesion failure — Suitable for hand tools and mechanical tools — Coloured yellow for easy identification GIB RocTape® is suitable for flat plasterboard joints in all GIB® Systems. For corner joints use GIB® Levelline®, GIB® Goldline™, GIB® UltraFlex®, or GIB® Paper joint tape. For more information call the GIB® Helpline 0800 100 442 or visit gib.co.nz

Watch the installation video at gib.co.nz/roctape

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 2463-3305

IN THE KNOW

NZCB NEWS Message from the Chairman

Build an excellent business

Message from Operations

Facebook reviews

Save the date - Conference 2018

Liable for free advice?

Revere Magazine

Employment termination

Halo Guarantee

What’s in the pipeline for LBP?

REDi Builders’ Insurance

Message from the Chief

NEXT GENERATION

ITAB Apprenticeship completions

Meet an ITAB Apprentice

Upcoming AST Excellence Awards

Twins snub corporate life

NEW NZCB OFFICES AND OFFICIAL OPENING

HEALTH AND SAFETY

TECH TIPS LBP compliance made easier

Vertical Shiplap Cedar Cladding

Closing the health and safety gaps

Fatigue in construction

Mythbuster: Ladders under new law

AROUND THE REGIONS

CERTIFIED PLANS Spin off for West Coast member

Whangarei NZCB members

Shane Ririnui - How Time Flies

Nick Matthews - NZCB South

Industry Events Calendar

Supporting future Crusaders

NZCB Taupo tees off for Cystic Fibrosis 9

Find NZCB on...

NZCB NEWS —

Milestones, Mindset and Mid-Winter Chaos!

Brent Chatterton Chairman

The year seems to be flying by with the Conference now a distant memory. We are past the shortest day but this winter has undoubtedly had a big impact on many building sites throughout the country due to huge amounts of rain and snow. One of our own sites got one foot of snow the day after standing 52 metres of concrete tilt panels! We celebrated another major milestone for NZCB with the official opening of our new National Support Office. You’ll find it featured in this edition of InHouse. From a Board perspective, this is a great asset for us and secures our future financially. I think the building reflects the type of business and builders that make up our NZCB members. This is very much a bespoke office showcasing examples of what our builders can achieve.

On the building front, workloads still seem to be tracking well. One thing I’m seeing a lot lately is the number of houses reaching working drawing stage but never constructed, due to a budget blow-out. It seems the designers are not keeping up with the growing costs of building and misinforming the owners of these costs. Whilst we as builders encourage homeowners to find a builder first, this mindset is slow to change.

This project required a large number of people, many more than your typical client, designer and build team. There are too many people to mention and individually thank for their work but please know that we really appreciate the efforts of all of those who have contributed. I look forward to catching up with the staff to see how they are enjoying their new offices. If you are ever in the area I certainly encourage you to pop in and take a look at the building that you, as members, own.

Wouldn’t it be great if this movement grew traction? Both, homeowners and industry would be much better off for it.

That’s my thought for the day. It could be a good discussion for the NZCB Facebook page… Keep safe.

NZCB NEWS —

Getting Paid

Jason McClintock Operations Manager

Back to Basics The construction industry is fortunate to have law which is written to encourage the flow of money up and down the contractual chain, it’s called the Construction Contracts Act 2002 [CCA]. Getting paid for your efforts is a great motivator, yet there are many of our members who do not bother to utilise this piece of law. We know this through our conversations with members who are owed progress payments. To unbundle the reasons for non-payment, a good place to start is with the stepping stones the CCA provides. The first step is to turn invoices into payment claims as defined under the CCA. For a payment claim to be valid it must contain the following minimums: 1) Be in writing. 2) Identify the construction contract to which the payment relates to e.g. Milestone payment as per NZCB Fixed Price+ Contract, 123 Happy Hippy Ave, Auckland. 3) Identify the construction work undertaken and the relevant period to which the payment relates e.g. Floor construction 12/03/17 – 05/04/17. 4) State the total claimed amount and when this claim is due e.g. The total including GST, 5 working days for payment. 5) Indicate how the amount of claim was calculated. This is an area many builders can fall short, it is recommended that enough detail is given so the client knows exactly what they are paying for. If the claim involves cost and margin work or variations, I suggest attaching a copy of each invoice. If margins and overheads are calculated differently to labour, material and subcontractors, demonstrate this clearly within the payment claim. The client will be looking to receive value for value charged, they may become suspicious if they cannot decipher this for themselves.

6) State the claim has been made under the Construction Contracts Act 2002. 7) To communicate what obligations your client has after being served a payment claim, an explanation of responding to the claim and an explanation of the consequences of not responding or paying the builder, must accompany each payment claim. This has been captured on one page which is called Form 1 – Important notice, and must be attached to each payment claim. Don’t cut yourself short Builders who use software for invoicing may need to seek advice as to how they can change their invoicing templates into valid payment claims. The Association offers a free payment claim template within the ToolShed. Peter Degerholm is an expert in the field of CCA, Peter offers his services to members through the Association’s free help line. I encourage you to exercise your rights of payment under the CCA, if non-payment occurs the CCA does open other avenues of payment the builder would not otherwise have access to. This applies equally to clients and subcontract work.

Save the Date! 25 – 26 MAY 2018

Don’t miss NZCB’s Twentieth (20th) Annual Conference & Expo held in New Zealand’s Coolest Hot Spot – Rotorua! 25th & 26th May 2018 Why Attend the 2018 NZCB Conference & Expo? • • • • • •

A Factory tour you wood (ha ha!) not want to miss… Earn up to 12 Skills Maintenance Points 12 Educational Workshops Network, mingle and make new friends Over 70 trade industry specific expo stands Soak up the spirit in Rotorua while lounging in a mud bath….

Rotorua! Feel the spirit – manaakitanga….

Have your say on

medium-density housing and the building industry in New Zealand?

BRANZ is leading a research study on medium-density housing in New Zealand. We are looking for feedback from the building and construction industry on what skills are needed and who has the interest and ability to deliver medium-density housing in New Zealand. Interested? There’s an opportunity to participate in a 30-45 minute telephone interview during July to September 2017. Just send your name, email address, phone number and occupation to mdh@branz.co.nz and one of our researchers will be in touch with you. You can choose a $50 voucher from either Mitre 10, Bunnings, Carters, ITM or Placemakers. It’s our way of saying thanks for having your say in the interview.

Find out more information about the mediumdensity housing research programme at: www.branz.co.nz/MDHRecruit branz.nz/MDHRecruit

| Technical Helpline 0800 80 80 85 | branzfind.co.nz

Inspiring the industry to provide better buildings for New Zealanders

AROUND THE REGIONS â&#x20AC;&#x201D;

Whangarei Launch NZCB Billboards NZCB Whangarei are sporting newly erected NZCB promotional billboards. Seven can be found in the Whangarei/Dargaville area. This was all part of a great Whangarei initiative to get the NZCB brand out there far and wide! Good job Whangarei!

24 Whangarei Apprentices and Counting! Captain of H E Harnett Building Company, Howard Harnett has now trained 24 BCITO apprentices! Thanks for making such a positive impact on the building industry Howard! At a recent NZCB meeting two of his newly qualified builders were awarded their National Certificates in Carpentry. Well done to Kyle Thomson and Anthony Morgan on their achievements!

Howard Harnett (Whangarei President) presents newly qualified builder, Kyle Thomson with his National Certificate in Carpentry!

Peter Lawrence (BCITO rep) presents Howard Harnett with his Employer Appreciation Awards for training two more apprentices.

AROUND THE REGIONS — Shane Ririnui Business Development Manager – North Island

How Time Flies Winter has well and truly settled in and as I sit back, take a breather and reflect on this, I ask myself “Where has the time gone?” How time flies when you’re busy! It only felt like yesterday that I hit the road with round one of the ToolBox Seminars which took place in February. Since then, the Association has been keeping busy with the Regional Apprentice Challenges, the NZCB National Conference & Expo and Apprentice Challenge Final, oh and yes, let’s not forget the shift of National Support Office into our new building! We’re all very busy people and I would like to point out and revisit a segment from last years’ Time Management ToolBox Seminar... Priority Managements mantra of the “4 D’s”: Do it now! Date activate! Delegate it! Or Delete it! Remember you can use this method with many of your everyday activities.

Recently, one of our members shared an interesting asbestos court case experience with me. He was summoned to court after being involved with a job containing asbestos. He took the ‘Working with Asbestos Booklet’ which WorkSafe NZ released last year, into Court with him. This became an important element to the case and he used the booklet to educate the jury and court on asbestos in its various forms. This resource aided him during the case which resulted in a positive outcome. These booklets have been sitting on our sign-in tables at the ToolBox Seminars for the past year, which is where he’d picked up his copy! I recommend the next time you attend a ToolBox Seminar to check the sign-in table for some very useful resources - you never know when they might come in handy! Ka kite.

Apprentice Challenge Tables Find New Homes The WBOP Committee presented one of the local apprentice challenge table and bench chair sets to the brand new NZCB National Support Office building. It’s great that a local apprentice has left a part of their mark and another talking point in the new home of NZCB.

WBOP President Paul James hands over an Apprentice Challenge table to Waipuna Hospice Chief Executive, Richard Thurlow.

This was placed on the deck for the Official Opening that I was honoured to attend, it was great to see the NZCB staff over the moon with their new space! We also donated another table set to the local Waipuna Hospice, Chief Executive Richard Thurlow greatly appreciated the gesture. Paul James WBOP President WBOP Committee deliver and hand over the 2017 Regional Apprentice Challenge project to NZCB National Support Office.

AROUND THE REGIONS — Nick Matthews Business Development Manager – South Island

Happenings in the South Thankfully, the mid-July storm that blasted much of the country didn’t stop building practitioners from attending the recent ToolBox Seminars in the South. Those who did gained valuable information on building compliance, LBP onsite learnings, Record of Work and contract minimums. The GIB® team presented some great content on the new bracing schedule (GS2-NOM), which when used in a standard three-bedroom home removes on average up to 3,000 screws. Plus you get an improved surface finish and less chance of popping! New intertenancy product, GIB Barrierline®, has also been well received due to its quick install time, greater weather resistance and excellent STC ratings, saving builders valuable time and money. NZCB President Dan Gallagher of South Canterbury recently coordinated a regional training evening and factory tour of Timaru’s Canterbury Long Run Roofing. It was great to see NZCB members in the region come together and benefit from their membership. Well done to everyone who came along and thanks to Canterbury Long Run for hosting! Further north, the NZCB Nelson Committee and regional members are planning a charity build to support the Nelson Marlborough Rescue Helicopter.

They’re hoping to raise $100k with plans to build the “Rata” design from the Certified Plans house range over eight weekends. The build, taking place in September and October, is supported by Mitre 10 Mega, Nelson. For more information or to register your support, please contact Garry Nott, our Nelson NZCB President. Up in the North Island, the new home of the NZCB National Support Office in Tauranga has just been officially opened by Craig Wilkinson and attended by many past and present NZCB board members, presidents, members, life members and VIPs. I was lucky enough to attend the launch and got to meet some of the founding members of the association, share a beer or two and listen to the many stories and tales of how it all started. The new building is a real showpiece for our association and helps to underpin the standard set by NZCB’s members nationwide. If you find yourself in Tauranga, please call in and visit the NZCB team. See you in the regions.

Parked up at Kaiteriteri, Tasman Bay before heading to the Motueka ToolBox Seminar.

AROUND THE REGIONS —

Industry Events Calendar OCTOBER

9- WGTN 11- TGA 12- AKL

NZCB ToolBox Seminar Building a Game Plan | The Contractual Stage Join us on the road as we take four aspects of building compliance (during the construction phase) breaking them down into easy to follow steps. Thanks to all those who have attended thus far! See www.nzcb.nz/event-calendar/ for seminar information.

Design Experience Series With New Zealand’s design industry more innovative and globally aware than ever before, finding time to keep up with the market can be a challenge. Design Experience Series showcases the latest trends and products as well as exciting international guest speakers. See designexperienceseries.co.nz to register.

AUGUST 22- Wellington 23- Masterton 28- Whakatane 29- Gisborne 30- Napier

Don’t miss being part of the construction industry’s largest travelling trade show tour.

SEPTEMBER 19 - Christchurch 20 - Dunedin 21 - Invercargill See conztruct.co.nz to register.

AROUND THE REGIONS —

NZCB Taupo tees off for Cystic Fibrosis NZ

Taupo NZCB Member, Paul Riedel promised to run every day of 2016 to raise funds for Cystic Fibrosis NZ. The Taupo Region of NZCB got in behind him and arranged a Charity Golf Day to bulk up the funds! Thanks to the generous sponsors of the event and those who turned up to play, an incredible $8500 was raised for Cystic Fibrosis NZ!

NZCB Taupo President, Chris Smith presents Paul Riedel with a $5000 donation from the Golf Day proceeds for him to top-up the $3,500 he’d already raised for running every day of 2016!

Paul running at Piha on Auckland’s West Coast. Paul averaged 5km of running each day (mostly around Lake Taupo).

Supporting our Future Crusaders! NZCB Canterbury recently contributed towards sponsoring team hoodies for some grassroots junior rugby teams in the Christchurch Metropolitan Competition. The co-branded hoodies look awesome and they’re a great way to support the next generation of “potential” Crusaders! Over 40 kids playing rugby for Sydenham Rugby Club have benefited from the sponsorship and are promoting NZCB every time they pull on their hoodies.

Sydenham Under 10’s - White.

Sydenham Under 6’s - Red.

NZCB NEWS —

REVERE

EXPRESSION OF INTEREST FOR THE NZCB “REVERE” MAGAZINE

KEEP THE APPLICATIONS COMING & BE APART OF OUR CELEBRATION! Submissions are still being accepted for this exciting new magazine concept and the Association would love to hear from you! Some of New Zealand’s most inspiring homes are built by NZCB members, however these buildings don’t always get celebrated the way we think they should. The general public deserves to know the exceptional calibre of our members and we see this magazine making its way into architect’s offices, waiting rooms, libraries and onto coffee tables throughout the country. We will also aim to have Revere available to all NZCB members providing them with a useful sales tool. 2015 saw New Zealand Certified Builders Association propose a concept to release a coffee table style publication called “Revere” designed to showcase the outstanding work of their members however to date

the release of this publication has not occurred. With the rebrand of NZCB well established it is now time to further expand and showcase the wonderful builds our members have completed. In turn providing an opportunity to leverage this exposure to generate and increase sales leads and further brand awareness. The intention is for this publication to be launched annually however this will be dependent on the level of interest shown by our members and based on the response since our last Inhouse edition we are gaining momentum quickly. Ideally, we would like to feature builds completed in the last two years and the Association anticipates starting work on this magazine mid-2017 with publication in the fourth quarter of 2017. Should you wish to participate please request an application form from Julie @ NSO and then submit the document to julie@nzcb.nz. This will then be reviewed potentially by design experts outside of NZCB who will make a decision on those entries submitted that will go to press.

TO GET INVOLVED REQUEST AN APPLICATION FORM Contact Julie Thomas: P: 07 927 7720 ext 707 or E: julie@nzcb.nz

IN THE KNOW —

Build an Excellent Business with Systems Can you identify with this situation? You are a great builder and take pride in completing jobs to a high degree of quality. You enjoy being on the tools. But the other parts of your business also have to be done. Those you enjoy less: admin, bookkeeping and the compliance bits. They seem to take up an increasing amount of your time (including weekends) and you seem to have less time for the enjoyable parts. People you employ operate well below your standards and seem to need constant spoon-feeding.

Here’s a sample list of key business systems for two areas of your business. It is not a finite list, but some suggestions that could save you time and stress when implemented into your business. Tick the ones you wish to review and then pick your top 5 priorities:

If you can identify with this picture, you’re not alone. Many small business people feel trapped and frustrated by the multitude of things they have to attend to. So how do you escape this trap? Through the power of SYSTEMS.

• Client progress meeting agenda

Well documented systems can leverage your time better and shift some of the burden on to others. They can help you maintain your quality standards by ensuring tasks are done consistently time after time, especially when delegated to others. They not only make your life easier, they help to empower less experienced staff by providing them clear and consistent advice on how to perform a new task. It helps make average people become great. Start by having current, high performing staff document what they do and how they do it. If it can be boiled down to a simple checklist, then all the better. Checklists can be one of the most effective system documents of all, mostly because they are simple, portable and easy to follow. Start to work your way through a list of business systems in your company. It may take months, but that’s okay. Just make a start where your biggest frustration is, or your biggest profit leakage and work through the list.

Contact NZCB National Partner, Andy Burrows The Trades Coach. For help on developing your “systemize to excellence project”, contact me at andy@tradescoach.co.nz and I can help you put a plan in place and provide you with some templates to get you started.

Production • Kick-off meeting agenda • Weekly site meeting agenda • Quality control checklists • Timesheet procedure • Variation procedure and template • Site file content and procedure • RFI system and log • Job close-out checklist Administration/Accounts • Back-costing process and reporting • Invoice preparation • Producer statement register • Manuals and maintenance information collation for project handover • Monthly dashboard report preparation • Health & Safety paperwork collection and filing • Client liaison back-up to owner Systems are the key to building an excellent company. A disorganized company controlled by the owner will never become excellent. Systems help you to produce the same results on every project every time. Systems will ensure little things are taken care of without you reminding people to do them the way you want them done. Systems will allow you to focus on the important tasks that will make you the most money. Systems allow you to deliver consistent results to your bottom-line and build real value in your business.

Certified Plan “Spin Off” for West Coast member, Hayden Simpson “We completed a Ponga build for some clients a couple of years ago and the clients were very happy with the job. They absolutely loved their home so much they referred many people to us.” The clients put their own personal touch on this design and the feedback from everyone who went through the home was very positive. Everybody loved the design and specifically that there was no wasted space at all. That is the great thing about Certified Plans, they can be changed to suit everyone’s tastes!

shown in the house and as a result Simpson Residential received approximately six enquiries about the Ponga plan. Since then we have priced four homes stemming from the sale of that one house - two of which are still potential builds. Nestled amongst the trees on the West Coast the location of this build also helped. It’s a little slice of paradise and has been a wonderful show piece for Simpson Residential, of which we are truly proud!” Hayden Simpson Residential Limited

As time passed, the owners ended up having a lifestyle change and put their home on the market to head off on an overseas adventure. A huge amount of interest was

Bill James in Action! Two successful sales seminars were held recently in Auckland’s Silverdale and Remuera by well renowned sales speaker Bill James. Everybody who attended the seminars came away positive and enthusiastic and ready to tackle their next house/renovation enquiry. Everyone is very keen to use their recent learnings, tips and techniques to seal a new deal! The next scheduled Bill James seminar will be held in Palmerston North on 20th September 2017. To register your interest or find out further information please contact julie@nzcb.nz.

Welcome to our latest Certified Plan Members! Hamish McDonald McDonald & Pretty Construction Limited, Taranaki Tom Cooney Tom Cooney Builders, Alexandra

IN THE KNOW —

Time to use Facebook Reviews Using reviews on your Facebook page is powerful, potential customers can see your rating and Google loves to showcase businesses with reviews. Actively ask clients to visit your Facebook page and rate your work. Be responsive Show customers you value their feedback by responding to their reviews. You can simply LIKE a review but I recommend taking the time to COMMENT and thank your reviewers, regardless of whether their review was positive or negative. Negative reviews can be useful! A mix of positive and negative reviews can help people trust the opinions they’re reading. In fact, some suspect reviews have been faked or censored when there aren’t any negative opinions. While negative reviews can make the positive ones more believable, a bad review still needs to be the exception rather than the rule. Managing negative reviews Many business owners would like any negative reviews to be removed, however Facebook generally won’t allow this. The only exception would be if you can prove the review is written by a fake profile or the review doesn’t conform to Facebook Community Standards. To contact Facebook about a review, select the drop down menu on the right hand side of the review, then select Report post.

At Buzz Marketing we design digital marketing campaigns, taking the time to understand your desired message and target audience. We believe a comprehensive social media plan should use Facebook to connect with your existing customers and reach new ones, without being wasteful of resources your business can ill afford. Our Buzz Marketing plan for success delivers immediate results. Danni Barnes | Marketing Director, Buzz Marketing Contact details: M: 021 777 700 W: buzzmarketing.co.nz

The best idea is to respond thoughtfully and promptly to a negative review, so others can see you are happy to fix any problems. Remain professional, admit your mistakes, correct inaccuracies and try to take the issue offline by asking for contact details or providing details so they can contact you. Once the issue has been resolved ask the person to update their review. Pausing reviews The Ratings and Reviews feature on Facebook is displayed by default when your page is categorised as a local business and has a physical address. If you want to disable the Review feature, go to Settings, General and Edit reviews. Select Disable reviews and Save changes. If you turn the reviews back on, all your previous reviews will still be there. If you need assistance with your social media I’m happy to help.

NZCB NEWS —

New Halo Guarantee Policy Enhancements Together, BrokerWeb Risk Services and NZCB are always looking to further develop the benefits of the Halo Guarantee and its functionality in various scenarios.

interest. The Guarantee also gives the builder cover for defects caused through failure of materials that he supplies. With this in mind, please remember that the policy needs to be taken out before the work begins, not when the build is finished.

Up until now, the cover available for spec homes and builder’s own homes has been a grey area. There hasn’t been any cover for spec homes/builders’ own homes on the basis that the builder/owner can’t claim for damage caused by his own negligence. If a Halo Guarantee was taken out, the cover was only activated when the builder sold the home and the Halo Guarantee automatically transferred, with full benefits, to the purchaser (even if it sold within the build period).

Our research shows that all other builder Guarantee covers have an all-embracing exclusion if the builder is building a “spec home” so our wording provides a further policy enhancement and point of difference from the other Guarantee covers.

Recently Derek Larsen of BrokerWeb Risk Services caught up with Lloyd’s of London to negotiate and clarify this cover and we can now confirm the following: Although the builder has no protection for his interest in the property, the wording provides protection for the interests of any other person/party who does have an

The availability of cover on swimming pools has also been difficult to determine in the past as it has depended on several factors including location of the pool, specifications etc. The Halo Guarantee policy wording now provides cover for swimming pools provided that the damage isn’t caused by hydrostatic pressure. Also, cracks or chips to any tiled surfaces are excluded unless the cracking or chipping is part of a defect to the swimming pool structure.

ATTENTION MEMBERS

Please remember... The Halo Guarantee is mandatory on all residential projects (both new and alterations) that are $30,000 incl GST or over. Halo Application forms need to be submitted before the work begins. All questions on the application form need to be answered. The Certificate of Practical Completion needs to be submitted to BWRS when the work is complete.

If you have any questions regarding the Halo 10 Year Residential Guarantee, please contact Brittany Robertson at the National Support Office on 0800 237 843 or BrokerWeb Risk Services on 0800 644 444 www.nzcb.nz/members/ 10-year-guarantee/

NZCB NEWS —

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Contract Works VS. Halo Guarantee What’s the difference?

Insurance isn’t everyone’s favourite topic and for many, it’s difficult to understand the ins and outs of each policy. There is still a lot of confusion out there about the difference between the Halo Guarantee and Contract Works Insurance, and whether or not you need to take out both… The short answer is YES! Both policies are essential to the job. Here’s a quick overview of these insurances:

Contract Works Insurance Often referred to as All Risk Insurance, it provides cover for physical loss to the property during the build including materials and items specified in the contract. It also extends to covering loss during the maintenance period of the policy. Essentially the policy provides cover for Fire, Storm, Flood, Natural Disaster and all Accidental Damage during construction. Things you need to know about Contract Works Insurance: • Natural Disaster claims have quite a high excess. The excess is based on a percentage of the loss at the time of a claim e.g. if the completed value of the works at the time of a loss is $200,000 and a 5% Natural Disaster excess applies, then there would be a $10,000 excess ($200,000 x 5%). It’s worthwhile considering this when completing the building contract and negotiating with the homeowner who is to pay for the contract works excess. • The builder usually takes out the contract works policy on a new build, whilst the homeowner should be responsible for taking it out on a renovation or any work on an existing structure. Regardless of who holds the policy, it’s important that both the builder and the homeowner have a copy of policy schedule/certificate prior to the work commencing. • The cover usually ends when the building becomes occupied or at completion of the contract (Practical Completion Certificate issued), OR expiry date of the policy – whichever is earliest. Therefore, you may have to extend the policy if the job takes longer than anticipated. Also, if the homeowner moves in before work has been completed, the contract

works cover may be void from then on. The homeowner should always arrange for the house and contents insurance to be in place when the contract works policy ends to ensure continuity of cover.

Halo 10 Year Residential Guarantee The Halo Guarantee has two sections. Section one of the policy provides cover prior to the completion of the works for loss of deposits and/or if the builder fails to complete the works e.g. due to company liquidation, death or legal incapacity. Section two of the policy commences after completion of the works (defects insurance period) and provides cover for structural and non-structural defects for 10 years from the completion date of the works. This protection also automatically transfers to any subsequent homeowners during the 10-year period. Cover includes protection against faulty workmanship, defective materials, weathertightness etc. The Halo Guarantee also provides protection for the builder with the Sleep Easy cover. It is important to always refer to your policy wording for full coverage details.

Your REDi Builders’ Insurance is administered by BrokerWeb Risk Services Ltd For a full review of your insurance programme please contact BrokerWeb Risk Services 0800 644 444

IN THE KNOW —

Can you be Liable for Giving Free Advice? Everyone needs some building work done for them from time to time. And everyone knows a builder. So quite frequently you are going to be asked your opinion on some aspect of construction, by a friend or acquaintance, or even a total stranger. It may be just a random question about the building consent requirements or the licensing rules or the most suitable building contract to use, but at other times it will be more substantial like the best way of doing a planned renovation, or a request to price a job, to sketch a design, to investigate a leak, to inspect a property they are thinking of buying or selling, or to keep an eye on a project that some other contractor is doing for them. On many of those occasions you won’t charge for the advice or the service. That may be because the property owner is a friend of yours and you are doing them a favour, or it may be because you are hoping to pick up a much larger project from them later on, and all you are doing is making yourself an integral part of the team or demonstrating your competence or generosity or enthusiasm for the project to increase your chances of winning the job. This is different from tendering for a project or pricing a set of plans and specifications, or doing promotional activities that you hope will raise your profile or make you valuable contacts, which you simply accept is a cost of doing business. This is actually giving someone the benefit of your expertise, which in other circumstances you would normally charge for. In those situations it is disappointing enough if you don’t get the job or you don’t receive sufficient acknowledgment or thanks. Imagine what it would feel like if they followed your advice, suffered some setback as a result, and then turned around and sued you for it.

Geoff Hardy heads up the construction law team in the Auckland law firm Martelli McKegg. Contact Geoff on (09) 379 0700 or geoff@martellimckegg.co.nz. This article is not intended to be relied upon as legal advice.

Particularly if they were a former friend or relative. But believe it or not, that is becoming increasingly common. Money is a strong motivator for people, and the more money they lose, they less important the personal relationship becomes in comparison to the prospect of recovering that loss. The two riskiest favours you can do for someone are to investigate a property for latent defects, and to monitor a project that some other contractor is performing for them. That is because the financial stakes are so much higher. If you are doing a pre-purchase inspection, and you fail to detect or point out something that later costs them $200,000 to repair, sooner or later they are likely to hold you accountable for that. The same applies if you are acting as an informal project manager over someone else’s work, and the work either proves to be defective in a major way or the budget is blown out of all proportion. It doesn’t even matter if they don’t sue you directly, because whoever they do sue, can drag you in as a defendant in an effort to share the burden around. Logically, if you were doing the work as a favour there would be no comeback on you. “All care and no responsibility” you might think. But think again, because the law takes a different view. If you have voluntarily given advice to someone you know is going to rely on that advice, then you owe a duty to exercise reasonable care and skill, even if you are not being paid for it. All that it takes is some indication on your part that you are assuming personal responsibility for your advice – in other words you are backing yourself to get it right - and secondly, reliance by the other party on the advice you give them. In deciding whether you have in fact assumed responsibility for the accuracy of your advice (as distinct from just making casual, off-the-cuff comments), the courts look at whether you stand to benefit from doing so. Even though you are not intending to charge for your services at that point in time, it may be that you are hoping to instil a sense of gratitude in them so that it is more likely you will pick up paying jobs from them in the future. Or it may be that you are doing them a favour in the reasonable expectation that they will return the favour to you one day –perhaps by giving you the benefit

IN THE KNOW â&#x20AC;&#x201D;

of their own skills and expertise, or allowing you the use of their bach or boat, or putting in a good word for you when you are applying for some sought-after position, or something of that nature.

Similarly, doing a drive-past of a building site once in a while is different from turning up twice a week and inspecting progress in the same way that a Council building inspector would.

The more you stand to benefit eventually, the more likely it is that your advice will be seen to have been professional as distinct from merely social. On the other hand, advice given merely as an act of kindness with no expectation of any future gain will be less likely to give rise to any liability.

So ironically, the less you do and the more casual you are, the less likely it is that you will assume any legal duty. But by the same token, if you have encouraged the other party to rely on what you tell them, then that will expose you to the duty whether you do the job conscientiously or not. So to be safe, you ought to give a disclaimer at the outset, in writing, and repeat it as often as necessary. That may be as simple as sending an email saying â&#x20AC;&#x153;All care and no responsibilityâ&#x20AC;? or alternatively offering to help out but recommending that professional advisers be engaged to do a more thorough job.

One good indication is how thorough you are and how much effort you put into it. If you have a quick walkthrough of a building with a potential purchaser and simply make a few casual observations, that is less likely to be seen as assumption of responsibility as taking a torch up into the attic, exploring every nook and cranny, and taking photographs or copious notes.

IN THE KNOW —

Termination of Employment for Medical Reasons Q: One of our employees injured himself mountain biking 2 months ago and he has been off work on ACC ever since. Our understanding is that he is awaiting surgery on his shoulder and once he has that, there will then be a recovery period before he is able to return to his full duties. His occupational therapist appointed by ACC has been in touch with us and she wants us to confirm that we will continue to hold his job open until he fully recovers from the surgery. We are a busy building company. Other employees have been covering for this employee’s absence but that is putting a lot of extra pressure on them and it can’t continue. His ongoing absence is affecting our business operation and we need certainty about our staffing. Do we have grounds to terminate this employee’s employment? I have checked our employment agreement and there is no clause dealing with termination in these circumstances.

A: Yes, you would have grounds to commence a medical termination process as you have already held his job open for a reasonable period of time. You will need to provide your employee with a letter outlining your proposal to terminate and the reasons why you are proposing this. You will then need to consult your employee (preferably at a face to face meeting if he is fit to attend one) and give him the opportunity to respond to your proposal and provide any further information, such as medical information. After consulting your employee, you must take into account his responses and any further information provided before then making your decision. If you decide to terminate on medical grounds, you need to give your employee the period of notice set out in the general termination clause in his employment agreement (because you do not have a specific medical termination clause). The notice would be given in a second letter to him. In your case, any period of notice would be unpaid, assuming your employee remains off work on ACC. He would however be entitled to any holiday pay owing. An employee who is aggrieved as a result of a medical termination can pursue a personal grievance claiming unjustified dismissal. We therefore recommend that you have your employment lawyer assist you with this process.

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. They have also previously produced a Guide for Employers in the Construction Industry which NZCB can send out to any members on request. (The above is by its nature general, and is not intended to be a substitute for legal advice).

TECH TIPS —

New Industry Initiative making LBP Compliance Easier and more Accurate Licensed Builder Practitioner (LBP) compliance has just got easier and more accurate following the recent launch of SmartBuild™. SmartBuild™ is a new building and construction industry initiative designed specifically to upgrade and update common industry reporting requirements. To date, most LBP reporting and documenting is carried out on paper forms. These have very few details, are often inaccurate and are difficult to process by the Building Consent Authorities (BCA). SmartBuild™ plans several new initiatives in the future. The initial offering is SmartBuild™ Lite which replaces outdated paper-based processes with smarter, faster, easier and more accurate electronic versions of the Certificate of Design and Record of Work Memorandum forms that are accessible from any digital device. SmartBuild™ Lite provides three distinct benefits:

• Once logged-in users do not need to repeat their details for each new Memorandum. LBP details will be automatically uploaded each time a new Memorandum is created • Once a user has logged on and filled in their LBP License Class, SmartBuild™ Lite automatically creates a Memorandum form showing only the Restricted Building Work sections that are specific to their LBP license class. • Users can choose the appropriate Restricted Building Work descriptions from unique tick box selections, making it quicker and easier to fill-in the forms which can then be saved or emailed. SmartBuild™ Lite is free to use and can be downloaded by visiting the website which includes a very easy to follow video explaining how to register and use the system to maximum benefit. www.smartbuild.co.nz

TECH TIPS —

Vertical Shiplap Cedar Cladding Vertical shiplap cedar cladding is a bold statement. Its verticality alone adds a dramatic aspect to any facade, while the natural variants of Cedar have long made this a popular choice for cladding. Limitations in the Building Code around its use have led to a rapid development of this cladding type as an Alternative Solution. Within the Acceptable Solutions there is no provision for use of a horizontal cavity batten because of the risk of moisture getting trapped behind the cladding and having no point of egress. Over the past 15 years, this restriction has led to the development and testing of cavity systems to overcome this limitation and meet the ever increasing demand for this cladding type. According to specialist timber importers and wholesalers Rosenfeld Kidson, if you want to use a horizontal batten, you must have it tested and approved as part of a cladding system as an Alternative Solution. Restrictions in the use of vertical cladding have all changed with development of ventilated cavity batten systems. Rosenfeld Kidson’s CodeMark certified 45mm structural cavity batten system is a further progression, improving performance and broadening the range of applications where it can be used, including the Extra High wind zone.

cladding face to the underlay. 20mm battens also require additional framing for support, practically doubling the number of nogs/dwangs required. With the 45mm system, the batten is tested and designed with radiused grooves to improve the strength of the section so the batten can span the studs. It therefore does not require any additional framing for support. You are then able to replace this additional wall mass of timber framing with insulation, adding to the walls R-value. It’s also more durable with a 50-year minimum lifespan compared to a 15-year durability requirement for 20mm battens.

This Tech Tip was supplied by Rosenfeld Kidson. Rosenfeld Kidson is approaching 85 years in business and has a focus on innovation supported by a wealth of experience. Don’t hesitate to contact the sales team to find out more about their unique 45mm batten system or other great products. Auckland - 09 573 0503 or Christchurch - 03 349 3316.

The battens are fixed to the framing and then the weatherboards are fixed with shorter 60mm nails directly to the battens alone, with no need to puncture the building underlay with face fixings. This helps to maintain the integrity of the underlay so the cavity can remain pressure equalised, which is the best way to prevent moisture being drawn into the cavity. If moisture does enter the cavity, the batten is designed with a bevel to the top and has a drip edge to the bottom corner to direct water to the back of the weatherboards, away from the underlay and out of the base of the cavity. It should be noted Cedar weatherboards should be pre-drilled on the bench and fixed with a single face nail per fixing point- never double nail or use brads to hold in place, as this will lead to checking and splitting. These thicker battens have led to increased scope in other areas and Rosenfeld Kidson now offer a Recessed Window Flashing System. This allows the aluminium window joinery to be pulled back to the frame and flashing line. The opening is clad around and into, to create a minimum 65mm recess. This new solution improves thermal and weathertightness performance while achieving a clean and contemporary look.

Standard horizontal cavity battens are 20mm thick, which means that the weatherboards are face-nailed through the weatherboard, through the batten, through the building underlay and into the framing behind. Long nails are needed - either 75mm with a flexible underlay or 85mm with a rigid underlay and Silicon Bronze or Stainless Steel are used, which are relatively soft materials and can leave room for error in fixing, being easy to skew and miss the framing. This can create a pathway for moisture to travel from the

Rafe Maclean Architects

THE NEW HOME OF NZCB

NZCB move into our new ‘home’ With an eye on the future, the brand new NZCB National Support Office at 10 Marsh Street means that after more than a decade in their confined old offices, the association now has room to move, and grow. The architecturally designed headquarters are not just a contemporary working space for the NZCB administration but also a place for the members to visit and utilise. “It belongs to over 2,500 members,” former NZCB Chairman Dave Brown says. The ‘hub’, as he describes it, is a smart move in more ways than one to lead them into the future.

From left: Tim Dove (NZCB Member Waikato), James Smith (National Sales Manager – Franklin Bathrooms), Warwick Leigh-James (NZCB Member Waikato), Mike Hayward (NZCB President Waikato) and Stephen Smith (Chief Executive – Franklin Bathrooms) enjoyed catching up at the Official Opening on the 25th July.

Decision to build makes sense Over and above all the operational advantages of the new offices, one key consideration was purely commercial. As a not-for-profit entity designed to serve its members, NZCB had to make the sage decision to attain such an asset. Twelve years of a commercial lease at the Spring Street address served its purpose but wasn’t in the association’s best long-term interests. “As a not-for-profit organisation, owning our own building made economic sense,” Dave explains and his successor, Brent Chatterton, agrees. “It helps secure the financial position of NZCB.” Importantly, it was viable.

From left: Founder of NZCB, Craig Wilkinson and Chief Executive, Grant Florence.

NEXT GENERATION —

New HQ well received From the word go, Grant knew what direction the design and build needed to go. Number 10 Marsh Street was to be “an office that reflected two things; our brand values and also the work our members and we do.” This, as well as the initial brief for “an efficient work space with a residential feel” has been achieved with positive feedback from staff, the board, stakeholders and the public. “It’s a great flagship for the association and the feedback we’ve received from members who have been in to visit is that it’s a ‘cool building’.”

NZCB Busting at the seams The board’s decision to build wasn’t just a fiscal stratagem. Impressive growth of the association and its services saw the project as a necessity. “We were busting at the seams, memberships were growing and more support was needed in a lot of areas,” says Dave. From an operational standpoint, the new building was unequivocally essential. Staff numbers at the association’s administration hub had swelled in recent times and Chief Executive Grant Florence himself was consigned to an office what he and his staff teasingly referred to as a ‘broom cupboard’. With the distinct possibility of further growth, future proofing is evident in the finished product. There is now space in droves and the entire ground floor can be leased until such time as NZCB requires it. Along with the contemporary design and up-to-spec materials and fittings, Brent was understating when he said “the staff will enjoy working in this new environment.”

From left: Operations Manager, Jason McClintock presents Chief Executive, Grant Florence with a sculpture he handcrafted himself. It symbolises the significant history of the Marsh Street site and the opportunities it will give to NZCB in the future.

Founder of New Zealand Certified Builders Association, Craig Wilkinson made the trip back from Kent, United Kingdom to officially open and cut the ribbon of the new NZCB offices.

A Word from the Founder It was great to be invited back to NZ and asked to open NZCB’s new offices, a big thank you to Grant, Brent and the board for the invite. It was great catching up with some familiar faces! 19 years ago I had an idea for an association that represented qualified builders, 19 years on and we now have our own offices! I think that is some achievement, and I must say I was very impressed with the design and finishes of the building. If any of you are in Tauranga make sure you pop in and check the office out, the team are very welcoming and also make great coffee!

The association has been run by a great team over the years, from Gary Shuttleworth who took the idea and ran with it, Derek Baxter (Bax) who took over the helm from Gary and led the ship with military precision and who was destined for bigger things. And now Grant Florence and his team who’ve had to change with the times and keep NZCB moving ahead with the introduction of licensing in our industry. I am sure you will all agree the association is in safe hands. I look forward to catching up with members and friends in the near future. Craig Wilkinson Founder NZCB

“10 Marsh Street was to be an office that reflected two things: our brand values and the work our members and we do” 26

NEXT GENERATION â&#x20AC;&#x201D;

NEXT GENERATION —

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HEALTH AND SAFETY —

HazardCo Viewpoint: Closing the health and safety gaps When the Health and Safety at Work Act (2015) came into force in April 2016, HazardCo members showed a renewed focus on ensuring appropriate policies and procedures were in place to address the requirements of the new legislation. Recently, the emphasis has shifted. HazardCo members are looking to ensure that policies and procedures are both being implemented, and having the desired impact. Businesses are starting to address their duty of on-going due diligence to ensure compliance with their duties and obligations. This is harder to do than it first appears. The real-world challenges of changing practices, implementing policies and embedding behaviours can result in gaps between the desired outcomes and what happens day to day. Working together to close these gaps is the real work of effective Health and Safety.

(e.g. common controls), then it is likely they are taking suitable actions that would be deemed reasonably practicable. 2. Due Diligence By paying attention to what is happening daily, weekly and monthly across the organization, PCBUs will influence Health and Safety actions and outcomes, as well as meet obligations and address a core duty for Officers. Where multiple entities (e.g. Franchise Workers, Sub Contractors, or other organisations like Architects), with varying Health and Safety practices come together, effective management across organisations becomes vital.

• The duty for PCBUs to ensure, so far as reasonably practicable, the health and safety of its workers, and other workers whose activities they influence or direct.

3. Consult, Cooperate and Co-ordinate Once regular reporting is in place, the involved parties should regularly discuss their performance and work to make improvements over time. Focus on appropriate consultation, cooperation and coordination between the PCBU, subcontractors, other workers and visitors on each site. Specifically, on what work activities will be carried out, the degree of influence and control each business has, and agreement on who will manage what and how it will be managed.

• The duty for officers of the company to exercise due diligence to ensure compliance with health and safety duties and obligations.

So what can the PCBU do? 1. Lead by example and have a comprehensive Health and Safety system.

HazardCo believes three elements of the legislation require special attention:

•

The duty for PCBUs to consult, communicate and co-ordinate with each other in respect of their H&S duties.

1. Reasonably Practicable There is no such thing as zero risk. PCBUs are instead held to a ‘reasonably practicable’ standard. When considering what is ‘reasonably practicable’ first consider what is possible to ensure health and safety, then consider what is reasonable under your circumstances. If the PCBU follows industry standards or commonly accepted guidelines for carrying out a task

2. Ensure that contractors and subcontractors have a robust Health and Safety system in place before being engaged. 3. Regularly check, and obtain evidence, that: a. Site specific safety plans (SSSP) are completed for full builds or large renovations. b. Site inductions are carried out for all workers and visitors.

c. Monthly site reviews are done to confirm risks to health and safety are being appropriately managed and the controls are effective. d. Weekly toolbox meetings are done to engage with all workers and encourage participation in Health and Safety actions. A positive approach to health and safety and an integrated system in which managers take ownership can lead to significant benefits for the organisation. Increasingly we see PCBUs working together to ensure they are meeting their obligations. PCBUs should ensure processes are in place to eliminate or minimise risk for all affected by the organisations activities, not just their own workers. Moreover, PCBUs should ensure that policies and processes are being implemented effectively over time.

HazardCo makes health and safety simple for small businesses in New Zealand with the tools and support to create a safe working environment. The industry groups that we serve are construction, agriculture / horticulture, manufacturing and retail / office. We stand beside our members, and deliver effective simplicity. The HazardCo system helps our members meet their health and safety responsibilities, while making the process easy. A membership with HazardCo provides a complete health and safety system with practical and online tools, a customised health and safety policy and a set of procedures. Members also receive unlimited access to expert advice and support from our health and safety team who are great at answering any safety question. If the worst should happen and an incident does occur at a workplace, our team is available, any time of the day or night. Contact us on 0800 555 339 or at www.hazardco.com Disclaimer : The contents of this publication are general in nature and are not intended to serve as a substitute for legal advice on a specific matter. In the absence of such advice no responsibility is accepted by HazardCo for reliance on any of the information provided in this publication. It is important that you seek legal advice that is specific to your circumstances.

NEXT GENERATION —

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NEXT GENERATION —

Profile an Apprentice!

COMPLETED APPRENTICES Ara Institute of Canterbury Michael Veasey - M2 Developments Sullivan Watson - Radius Building Limited Todd Boyce - Chatterton Builders Limited Shane Bristow - Hume Builders Limited Adam Clarke - J W Vessey Builders Limited Michael Gwynne - Hoogervorst Builders 2005 Daniel Knight - Procuro - Builders and Project Management Ben Lawrence - Contract Holdings Limited James Roberts - Roberts Construction Limited Angus Simpson - CA Freeman Construction

Name

Jared McKenna

Age

26 years old

Dion Te Moananui - AJ Scott Construction Limited

Experience

4 months into apprenticeship

Ligen Zhang - Starfield Homes Ltd

Enrolled with

Toi Ohomai Institute of Technology (Tauranga)

Nelson Marlborough Institute of Technology (NMIT)

Employed by

Hayden Burke, Fenton Building Ltd

Cary Bryant - Scott Construction Limited

Personal Interests

Aviation – doing part time studies at Tauranga Aero Club as I work towards my private pilot’s licence; hanging with family & friends.

Daniel Gray - Dashwood Treated Timber & Posts Limited

Why Carpentry?

I always wanted to be a chippy, I’ve done some gasfitting but found it hard to get a start in Tauranga initially. After making contact with Hayden, I was away!

Plans for the future?

I’d love to run a business but first my priority is to get qualified & be a really good builder!

Best part so far?

Being part of the Fenton crew - boys all on same level etc.

Hardest part so far?

Crawling under a house to put underfloor insulation (batts) in.

Favourite power tool & why?

Dropsaw – can do all the angles and it’s quick & easy.

Ford Ranger or Toyota Hilux?

Ranger (“When do I get it?!”)

What would you say to someone wanting to become an ITAB Apprentice?

Go for it - get paid for learning & get the free stuff (ITM Starter Kit), it easily outweighs the fees!

www.itab.co.nz /itabnz/

Wade Puklowski - Coman Construction Ltd Cody Taylor - JRN Construction Limited Southern Institute of Technology (SIT) Adam Harvey - Stewart Construction Limited

Good job guys!

NEXT GENERATION —

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For more information visit us online. www.hiandri.com

NEXT GENERATION —

AST Excellence Awards on the Horizon The recent NZCB Apprentice Challenge 2017 Final provided an opportunity to see the best of the best performing on the national stage, and the AST is now looking to the annual round of AST Excellence Awards. These awards are sponsored by the AST and chosen by ITP’s within their own regions, to acknowledge a range of achievements throughout the year. When considering worthy recipients, factors such as persistence in overcoming adversity (academic, financial or otherwise), excellence in training as an apprentice (in general, or in a specific area), or showing other qualities such as leadership are considered. The first of the ITM Apprentice Starter Kits have been distributed to new ITAB apprentices. They’ve been gratefully received by the apprentices, and perhaps give some bragging rights on site with the new tools, albeit briefly. This pack is the most tangible of the benefits ITAB apprentices can receive by training through an ITP; other benefits include being an apprentice member of NZCB, getting a ‘deluxe’ student card for discounts on a wide range of purchases, the chance to enter the NZCB Apprentice Challenge, and accessing funds through the AST Hardship grants scheme.

It’s pleasing to see that the number of apprentices training through an ITP with ITAB is continuing to grow. While the numbers do fluctuate, these apprentices now represent around 17% of all carpentry apprentices across New Zealand. The proven model of training offered through the ITAB partnership is clearly seen by many as offering real value in terms of training and education. The milestone of becoming a qualified carpenter is celebrated in a number of ways, with some ITP’s having mid-year graduations in the coming weeks.

Brian Dillon Chairman AST Trust

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IN THE MEDIA —

From the Media... Phil Goff calls for the introduction of a building warranty or insurance scheme Auckland Mayor Phil Goff calls for the introduction of a building warranty or insurance scheme to avoid ratepayers forking out another $600m in a leaky homes saga; Govt to release paper on this soon. Auckland Mayor Phil Goff is making another call for central government to take the lead on enabling houses to be built more quickly in the super city. This time he wants to see a law change to transfer the liability of substandard building from local authorities that issue consents, to builders who do the work. The joint and several liability system we currently have means any party responsible for a loss can be required to pay up to the full amount of damages. In practice councils hold the ultimate responsibly for defective building products they approve, as they are often the last ones standing with the deepest pockets. In the wake of Auckland ratepayers footing a $600 million bill for the leaky home saga, Goff says councils are taking an overly conservative approach when issuing building consents. He is therefore throwing his weight behind a Mayoral Housing Taskforce Report recommendation for central government to investigate introducing a building warranty or insurance scheme. While the government has been considering this for several years, Building and Construction Minister Nick Smith says a policy paper is expected to be released within the next couple of months. “Policy work is continuing. It is a complex issue that impacts on both the commercial and regulatory sides of the building industry,” he told interest.co.nz. Goff: “I don’t want to see Council being excessively conservative” At the release of his Mayoral Housing Taskforce Report Goff said he was “pretty keen” on the introduction of a building warranty of insurance scheme. He then rather emphatically explained: “We’re all fond of kicking Council, saying, ‘This bloody building consent is taking this long and you’re being far too tight’. “But when you consider that figure… $600 million that Auckland ratepayers have picked up because of leaky buildings; when you consider

the builder may have been responsible for the fundamental defects in a property that may have cost 10s of millions of dollars; you try to find that builder today - they’ve gone, they’ve liquidated, they’re nowhere to be seen, and the liability comes back on to Council, because Council is the last person left standing. “I don’t want to see Council put in that position. I don’t want to see Council being excessively conservative in terms of innovative building methods… “I’d like to see a system where the builder then had to, through the insurance scheme, take responsibility for their own work. Where the ratepayer is protected and where the consumer gets more protection. “Obviously nothing comes for free. And if you have a warranty system, the cost of that warranty comes back to the consumer. But rather that than the sorts of costs that have been imposed on Aucklanders as ratepayers and on individuals, where they haven’t been able to get any redress anywhere.” Goff noted every state in Australia has a warranty and insurance scheme, which generally covers building work over a certain value for a period of six years. If something like this was introduced in New Zealand, he said it would have to cover a period of at least six years. “I know our council planners would feel a lot more comfortable if they had the surety of a warranty scheme where the insurer would only insure if the insurer felt that that particular builder was a good risk… “If you have a consenting system where for example you have full confidence in the builder, because the builder has worked with you for many years, then the detail to which you have to carry out the inspections, and the time taken over the consent process, could probably both be reduced, without subjecting yourself to greater risk.” A third of builders may struggle to get insurance New Zealand Certified Builders (NZCB), which has a membership constituting around a third of builders in the residential sector, already has a 10

year residential building guarantee. This means homeowners are covered for structural and nonstructural defects, loss of deposit, extra costs to complete the dwelling and any alternative accommodation requirements if they hire a NZCB certified builder. The cover remains on a property, even if it is sold. The organisation’s chief executive Grant Florence says NZCA has $1.5 billion of cover underwritten by Lloyd’s of London. He maintains transferring the liability for building from councils to builders will be problematic. He believes around a third of builders will struggle to get insurance, as their work simply isn’t up to scratch. Florence says roughly a third of builders in New Zealand don’t belong to a professional organisation like NZCB. Ultimately, he would like the industry to “build in quality” and regulate itself, rather than having an external party, such as a local authority issue consents. He accepts this is a far cry, but sees merit in NZCB’s certification and guarantee system being rolled out more widely. Law Commission recommends capping councils’ liability This issue of liability has been on the government’s radar for some time. In 2014, Smith said he agreed with Law Commission recommendations made at the time to retain the current rule of joint and several liability. Yet he acknowledged: “There are, however, some issues around fairness between defendants that warrant further consideration, particularly in the building sector.” The Law Commission suggested local authorities’ liabilities be capped, initially at $300,000 for each claim relating to a single dwelling; and $150,000 per dwelling for claims from dwellings in a multi-unit complex, with a $3 million cap per multi-unit development. It also suggested there be “discretion to grant relief to such a minor defendant, to allow courts to do justice in particular cases. The discretion should be exercised rarely and within limits that balance the interests of the person who suffered the loss with the person who caused the loss.”

Jenée Tibshraeny interest.co.nz 17 June 2017

IN THE MEDIA —

“If you had a ute, a radio and a dog you could become a builder.” We’ve come a long way from the days when if you had a ute, a radio and a dog, you were qualified to be a chippie. But in spite of registration schemes, upskilling and a raft of new regulations to keep the construction industry in line, experts say there are still too many builders in business who have gaps in their skill sets. Now there’s a plan to do something about that. New Zealand Certified Builders wants to launch a scheme to upgrade the skills of busy builders by taking the training to them. The move was sparked by its concerns over “build quality and basic construction principles which were not cutting through to building sites”. A pilot carried out in Waikato and parts of Auckland that ended in January has been declared a success, and now funding is being sought to expand it. The NZCB says while builders who are members of either of the two building trade associations (NZCB and Registered Master Builders) receive ongoing training as part of their membership package, about a third of all builders in the country are not a member of either association. This Building Insights scheme aims to deliver on-site training to anyone who asks for it, regardless of affiliation. NZCB chief executive Grant Florence says the scheme is timely as the problems of an industry under pressure kick in. The country’s building boom has been great for the industry’s bottom line, but clients are increasingly feeling the rough edge of the rush. When that door is still sticking a week after the big renovation, just try getting your builder back. “They’ve moved on to the next job, because at the moment, there’s always a next job. There’s a growing concern around building quality, because when [the industry] is very busy, quality does tend to drop,” he says.

educators aiming for tea breaks. One problem area where a lot of complaints come from is window installation, another common issue is the installation of frames around the edges of concrete slabs. Get either of those wrong and it means leaks. Florence says after some demonstrations you’d get builders admitting they’d been installing windows for 20 years without using best practice methods. Direction on what skills were lacking came from council building inspectors. In Auckland at the moment about 25 percent of building inspections fail. That’s a significant improvement from the 40 percent of two years ago, when the Auckland Council was lamenting the lack of skilled professionals in the city to service the demand, saying some builders are skimping on quality. The council’s inspections manager, Jeff Fahrensohn says they have done a lot of work with the industry since then to ensure work is ready to be inspected when site visits are made. There has been increased awareness of building code requirements, and the industry continutes to upskill. One of the council’s tips for building inspections is to check that your builder is a registered Licensed Building Practitioner before you get any work done. Ironically you don’t have to have qualifications to be a registered LBP, which is something that irks NZCB.

Florence says the industry has had ongoing talks with the Ministry of Business, Innovation and Employment over it, and minister Nick Smith is sympathetic. “Up until the licensing initiative, anybody could become a builder - there was a low barrier to entry,” he says. “If you had a ute, a radio and a dog you could become a builder.” Florence says introducing licences put a line in the sand, but the industry would like that line moved up and standards improved further. In the meantime, it’s hoped the Building Insights scheme will help improve standards, despite what NZCB describes as “the weakness of the regulatory framework”. Florence points out there are rules and regulations in place designed to protect customers - but he says most people don’t seem to know about them. For example, any work worth more than $30,000 must have a written contract drawn up. A recent NZCB survey found more than half of homeowners doing big renovations had no such contract. “People have massive levels of trust in their builders,” he says. “If you go and buy a cell phone you sign a contract but it’s not unusual for hundreds of thousands of dollars worth of work to be done without one. It’s crazy.” He says clients should also ask for references and check them, check their builder belongs to a recognised trade organisation, and check they are a licensed builder.

Alexia Russell newsroom.co.nz 21 June 2017

The pilot programme, in conjunction with BRANZ, was run over five months using “wise old heads” in the trade who were happy to step away from the tools for a bit and share their knowledge. “The building industry is ageing so we have members who are happy to mentor and train,” says Florence. “They’d like to give something back.” They visited over 50 residential building sites, reaching more than 450 builders. Trailers were fitted out with the necessary equipment and driven to building sites, the

Builder Mike Hayward (left) gets a skills update from demonstrator Jason McClintock (wearing glasses) on a building site in Hamilton with the travelling home improvement trailer, Photo: NZCB.

IN THE KNOW —

Registrar’s update- what’s in the Pipeline for LBP? It’s been a few months since the LBP team featured an article in InHouse so I thought it worth providing readers with a general update on the LBP scheme. We recently licensed our 20,000th carpenter which is a significant milestone for the scheme and one worth mentioning here. In other news, here is a behind the scenes glimpse of some of what is currently going on in the LBP space... • Our first LBP ‘Practice Note’ is nearing completion. It focusses on supervision of restricted building work, the dos and don’ts and what you need to know. The note is based on a recent decision of the Building Practitioners Board in C2-01143 and deals with the practical and legal implications of performing a supervisory role. We will be publishing it soon and it will be an important read for all LBPs – so keep an eye out for it! I would also like to acknowledge and thank the NZCB team for their feedback and contribution for drafting the practice note. • A formal evaluation of the LBP Scheme will commence in 2017/18 financial. The LBP Scheme has been running since 2007 and fully operational since March 2012 so it was time for a postimplementation review and evaluation to take place. NZCB will be a key stakeholder and point of reference for the review so this is another item to watch out for. • Skills maintenance remains important for all LBPs to keep up to date and continuously improve your knowledge and skill. Bear in mind the new skills maintenance programme will get underway in earnest from November this year. The new model was brought in in 2015 and includes elective and compulsory activities (on the job learning and reading the mandatory Codewords/LBP Knowledge articles). You can complete your skills maintenance requirements in our system as you may have previously done, but this time around the industry is offering ‘third-party’ solutions to skills maintenance. There are web apps and other methods available on the market so it is up to you to choose what process best suits your needs for recording your skills maintenance! Whatever way you go, please ensure you have things wrapped up in advance of your individual relicensing round. We will be putting more communications out about relicensing in the skills

maintenance programme in coming months so please have a read for an update on the application of the new skills maintenance system. •

We will soon be releasing a ‘Licence Class Criteria’ for trade and sub-trade groups interested in joining the scheme. Since the establishment of the scheme in 2007 numerous trade groups and individuals have contacted MBIE to query how a new licence class or areas of practice might be incorporated under the scheme. Making changes to the LBP scheme can have implications and consequences for practitioners, consumers and taxpayers. MBIE has identified three overall principles it will follow when considering whether to amend or add LBP licence classes and areas of practice, which are broadly touched on here:

• Principle 1: if it’s working well, leave it be – we generally won’t consider changing the licence classes and areas of practice unless there’s a significant problem or opportunity that needs to be addressed. We also have to prioritise based on the significance of the issue and what else is going on in the building industry. • Principle 2: make the right fix – once we know that a problem needs to be addressed, we need to look at all the options and make sure that a licence class or area of practice is the right sort of fix for the issue. • Principle 3: choose the right time – If a change to licence classes is the right fix, we need to make sure that we get the timing right. Rushing changes to the scheme can have unintended consequences for the industry and consumers. Look out for the ‘criteria’ which will be published on the LBP website in coming months! • LBP access to NZ Standards continues to be a hot topic, so we are continuing work in this area with the ultimate goal of offering up a suite of NZ Standards

IN THE KNOW —

to LBPs as part of their licensing status. I will keep you posted on this front as things continue to evolve . • The Building Practitioners Board would like it known that the Board is still receiving far too many complaints that relate to records of work (RoWs). Currently around 25% of all complaints arriving at the Board include a disciplinary grounds for late or non-presentation of a RoW when one is required. For the avoidance of doubt, a RoW must be completed by each LBP who completes restricted building work (RBW). In order to avoid the same issue, a RoW must be produced on completion of RBW (in practical terms, when you are leaving site with no intention of returning). And remember, a RoW must be supplied to both the owner and Council.

positive for the sector, but as with all good news comes challenges such as sourcing and retaining quality, competent labour. Lastly, I recently attended NZCBs Annual Conference and Expo held at the Viaduct Events Centre in Auckland. The Conference and Expo proved to be a great event with something for everyone! The highlight for me was listening in on some of the quality speakers, observing the highly skilled apprentices on show and meeting and interacting with NZCB staff and many of the NZCB members in attendance. A passionate and well-informed bunch… Until next time!

The above items provide a brief update on some of the initiatives underway in the LBP space and offer up a quick outline of how the scheme is travelling. As winter takes hold the construction outlook looks extremely Paul Hobbs Registrar Building Practitioner Licensing

Good Practice Guide

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HEALTH AND SAFETY —

Fatigue in Construction

Two years’ on from the implementation of the Health and Safety at Work Act 2015 (Act) all employers should be aware they have a duty to take all reasonably practicable steps to manage the risks of fatigue on their workers and workplace safety. But what fatigue is, how it is caused and what can be done to reduce it is not so common knowledge. Fatigue is a state of physical and/or mental exhaustion which reduce a person’s ability to perform work safely and effectively. Having a clear workplace fatigue policy will ensure workers and employers can identify it and minimise the risks associated with its occurrence. In summary, the effects of fatigue include a reduction in alertness and an increase in the risk of harm occurring. Examples of causes are set out below, along with suggestions for reasonably practicable steps to reduce the risks. Fatigue can be caused by physical and mental demands at work. Activities like heavy lifting or long periods of concentration can increase fatigue. Avoiding unrealistic deadlines and ensuring plant and equipment is fit for purpose are examples of steps to reduce the physical and mental demands of work, as are job rotation to limit extended periods of mental or physical demands, and workload management. Environmental conditions such as working in artificial light or air-conditioning, handling noisy tools or working outside in winter or in the heat of summer can also increase the risk of fatigue. Where avoiding work through extreme temperatures is not possible, regular job rotation could minimise exposure, as could provision of appropriate places for rest breaks, for example shaded areas where workers are working in the heat. Irregular hours and overtime often do not provide workers with sufficient time for physical and mental recovery. Ensuring work hours are not too long, breaks

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are regularly taken, staggered start times or longer periods off work in between shifts are all examples of reasonably practicable steps to manage the associated risks. Sleep disruption can also cause fatigue, but the quality and quantity of employee sleep patterns is largely out of employers’ control, except in terms of rostering, for example to limit night shifts, and ensure recovery time between work periods. As with all health and safety risks, workers also have responsibility here. Getting a good night sleep, taking regular breaks during and between shifts and eating a balanced diet are reasonably practical steps workers can take to reduce the risk of fatigue. Workers should be trained to recognise the symptoms of fatigue and communicate with the employer where symptoms are identified. If you would like further information or assistance with implementing or reviewing a fatigue management plan, give us a call.

NZCB NEWS —

Nails or screws? Softbaits or pillies? The most common questions from builders who install Smartfit windows. ®

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NEXT GENERATION —

Twins snub corporate life Brothers ditch top-level corporate and consulting roles to train as apprentice builders.

Jourdan Lee spent seven years climbing the banking corporate ladder – and three years saving enough money to quit. When he had, Lee threw his career away to become a builder. Today he wields a hammer and saw as he begins a three-year carpentry apprenticeship; just weeks ago he was dealing in millions of dollars a month in his role as an assistant business banking manager at the ANZ in Hamilton. “I’ve gone from being a keyboard warrior to a hammer and spade warrior,” the 31-year-old father of two daughters says. “It is not a small move - I’ve taken a drop in income – so I have no choice, it has got to work. “But I am excited about the future, I’m earning money while I learn and indications are I can be making up to $85,000 in time. For now, it’s about working hard and enjoying it along the way, the money should come along fine.” But he is not alone. His twin brother Bart Lee is doing the same, giving up a promising corporate career - he was a senior associate at consulting firm PwC for four years before establishing his own personal fitness training business - to join Jourdan as an apprentice builder. The Fiji-born twins - who both have university commerce degrees - are now working together full-time for Hamilton-based MH Builders. “We had been talking about it and budgeting for about three years,” says Jourdan, “but it was only a year ago when I felt I had saved enough money that we really made the call to do it.” Their story has come to light as the Building and Construction Industry Training Organisation (BCITO) runs a Not Your Average Tradie Road Trip in which a group of BCITO apprentices are travelling the country to help community groups, schools, and charities with building projects.

we didn’t fall behind in any of our payments,” he says. “Because of this, I didn’t get into the building gig as early as I wanted.” The first person he had to convince was his wife Martine, a corporate marketing manager. “To put it in perspective,” he says, “I was in banking for seven years (including a stint with Bank South Pacific in Fiji). Before that I worked as an assistant manager at a resort in Fiji and before that I was in the airline industry. So when I told Martine I wanted to get into building her first reaction was ‘you’ve got be kidding’. “I took her through my plan and although she supported me she said ‘this better be your last job change’.” Now three months into his apprenticeship, Jourdan says his first day was tough: “It was really physical with lots of heavy lifting, but everything I do I ask lots of questions, this is how I learn and what makes it interesting.” Even so Jourdan does have some regrets. “Although I never intended banking as a career and always knew I wanted to do something with my hands and not be inside all day, there was still a lot of potential for me in banking. I would have been interested to see how far I could have gone.” Ironically Bart and Jourdan’s father, also a builder, had advised them against working in construction. “He worked in Hong Kong but his whole idea was for us to get an office job, he didn’t believe there was much future in building,” Jourdan says. “We didn’t tell him until last November what we were doing and surprisingly he was quite supportive. Bart, who is married with a seven-year-old daughter and a five-year-old son, tried to find work as a builder in 2012 when he resigned from PwC. “I’ve always wanted to have the skill to build houses or do renovations and when I left PwC I rang every builder in the Waikato I could find but at the time no-one was taking on apprentices.” So he set up Bart Lee Training Ltd and continues to offer personal training sessions each day before and after work with MH Builders. “Working with Jourdan is one of the best things to happen in my life,” he says. “I’ve no regrets at all, I want to design and build houses; I want to be a stand-out player whether I’m working for someone or running my own business.” BCITO chief executive Warwick Quinn says the ongoing building boom is putting pressure on carpenters with over 29,000 needed in the next five years to meet demand and to replace people who leave.

The trip is designed to attract more people into the trades at a time when 50,000 more workers will be needed in the construction industry as the building boom continues. About half of these will need to be qualified trades people. In three years Jourdan put aside enough money to tide his family over for a year (his two daughters are aged eight and four). “I wanted to make sure it wasn’t too hard on the family and that From left: Jourdan and Bart Lee, MH Builders.

NZCB NEWS —

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HEALTH AND SAFETY —

The Health and Safety at Work Act

Despite what you may have heard, you can still use ladders under the new law. The new law doesn’t specify heights at which you should or shouldn’t use a ladder, but it does say you must use equipment that’s appropriate to the task. So if you work at height, you must take action to protect workers from harm that could come from a fall, as far as is reasonably practicable. Work platforms, scaffolding and towers are all options that help prevent falls. Ladders should be the last option, and only used for lower-risk and short-duration tasks. According to WorkSafe, approximately 70 per cent of falls are from ladders and roofs. The cost of these falls is estimated to be $24 million a year – to say nothing of the human cost as a result of these falls. If you do need to use a ladder, here’s some quick tips on how to do it safely: DO: • Set up the ladder on a firm, level surface • Make sure you have the right type of ladder for the task e.g. platform ladder, fibre glass etc. • As much prep work on the ground as possible • Use a tool belt; don’t put tools on the rungs • Secure the top and bottom of the ladder to prevent it slipping sideways or falling backwards • Keep three points of contact • Make sure your belt buckle/belly button remains between the rails of the ladder to avoid overreaching

• Face the ladder when moving up or down • Keep both your feet at the same level • Stop at the third step from the top of a straight ladder or ensure you have at least one metre extending past the point at which you are stepping off from • Use the 4 to 1 rule: if the ladder is 4m high, then it should be 1m from the wall • Use an industrial-standard ladder in good condition on stable ground • Make sure the legs are fully open • Ensure the stays and clips are secured on stepladders, place the steps towards your work and avoid side-on loading (like drilling side-on through bricks) • Ensure all working areas and access ways are clean, level, well-lit and in good condition • Remove unwanted material and construction waste regularly from site so it does not accumulate • Ensure construction materials, power leads, tools and equipment are positioned and secured to avoid creating hazards • Ensure you wear appropriate safety gear DON’T: • Overload • Overreach • Work near openings or voids • Place the ladder against a fragile surface such as guttering • Have more than one person on the ladder at one time For more tips on how to use ladders, check out Site Safe’s practical construction advice at https://www.sitesafe.org.nz, or consider booking Site Safe’s new Passport renewal course, Passport Plus – Height.

Jason Steer, Site Safe Central Health and Safety Advisor A member of the Site Safe team since 2011, Jason provides height training and health and safety advice in the central area. His passion lies in training and coaching those working in smaller businesses in the construction sector. His health and safety training skill experience includes: Chemical Emergencies/Handling, Confined space entry, Emergency Warden Duties and Safe Working at Heights, Fire Extinguisher training, Team Building, Emergency Preparedness and Chemical Emergencies. With experience at the coal face, Jason’s passion for health and safety lies in getting the message out to the sector: “by looking after ourselves and doing what we know is right, we get to go home to our families at night.” Site Safe is a not-for-profit, membership-based organisation that promotes, inspires and supports a culture of health and safety in New Zealand construction.

Scaffolding, work platforms or towers are a better option for longer jobs.

NZCB NEWS —

Membership Benefits

Promote your commitment to superior workmanship and enjoy exclusive benefits with your NZCB membership. NZCB have teamed up with our National Partners to help you save time, money and stress with these exclusive benefits…

Noel Leeming Commercial We’ve teamed up with Noel Leeming to bring you the best prices on items at all Noel Leeming stores nationwide. Complete their Trading Terms to access exclusive commercial pricing. Added Bonus: Noel Leeming discount vouchers are available to all members for you to pass on to your clients to say thanks for choosing you as their builder! Checkout the Deals & Discounts section of the Members ToolShed for further info.

Fancy a get-away? All members of NZCB can now access a 10% corporate discount for all NZ Rydges Hotels. Checkout the Deals & Discounts section of the Members ToolShed for the discount code!

The NZCB Health Plan – Increase productivity and engage your team! Advice Financial and NIB’s package for NZCB members offers full acceptance of pre-existing conditions, great flexibility and competitive pricing. They’ll meet with your team and answer any questions you may have. Call Jamie and the team at Advice Financial about how to make the most of the NZCB Health Plan. E. jamie.coltman@advicefinancial.co.nz P. 0800 10 22 64

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NZCB Merchandise

To place a clothing order for your team simply login to the Members ToolShed and navigate to the Online Shop to browse an array of merchandise, alternatively email brittany@nzcb.nz.

Andrew Oakenfull and his son Alex are stoked with their company branded NZCB apparel. Andrew wears the Syzmik Hoodie and Alex is excited to have his very own kiddie sized Razor Polo.

The team at Adan Larsen Builders keep warm on a chilly Taranaki morning in their Syzmik Hoodies.

NZCB NEWS —

From the Chief Executive As reported in other parts of this InHouse we finally moved into our new office home in Tauranga. A huge thanks to all those who have supported this project, including the range of suppliers who provided real support in the form of building materials. We have acknowledged their support in the special brochure insert enclosed in this InHouse – but it’s good to provide thanks to them again.

has been appointed by the board in Dave’s place. Many thanks Dave for taking the time in representing the association in this position.

The office based team are really enjoying working in a new modern environment and I am sure we will see some further productivity increases!!

The industry continues along at a fast pace with large percentages of our members across New Zealand still reporting very full forward workloads. Although the media are starting to report doom and gloom in the housing industry – I am still of the firm view that we have many years to go yet, of strong building demand. The fundamentals are still with us – low interest rates, balanced immigration, positive consumer confidence and housing stock shortages (in many areas).

The recent board meeting saw some changes within the board with Gary Guernier not seeking re-election as an additional director. Gary had been on the board for over 4 ½ years and felt that it was time for some new blood to come through. On behalf of us all I would like to express our thanks to Gary for his efforts and commitment. Gary joined the board after his recent arrival back in New Zealand after working in Asia for a number of years. We were fortunate ‘to nab’ Gary before he was swooped up by many other organisations seeking his skills and experience. Gary has been incredibly supportive of the development and relevant changes of NZCB over the period that he was a member of the board. He was always one to ask the harder left field questions but also offer the ideas – his knowledge of the industry, industry networks and governance experience will be a hard act to follow. The board has re-appointed Reneé Jaine for a further 12 months as additional director and is undertaking a recruitment programme to replace Gary. No doubt the Chairman, Brent Chatterton will provide further updates to all members on this. Dave Brown has finished his maximum term representing the association on the Building Research Advisory Council (a part of BRANZ) and Mike Craig

A shortage of skilled trades remains and price pressures continue, as you will be seeing with a range of building material price increases coming through. As predicted, the wider ‘housing’ issue will continue to be front and centre over the next few months leading up to the general elections. We have been communicating our wish list to politicians over the last month or so. By the time you receive your next edition of InHouse, the general election will be all over and our political direction and future, mapped out for the next three years. After feedback from the regional presidents – we will continue with regular regional president zone meetings across the country for the next 12 months. The sessions are very valuable for the association in gaining feedback on a wide range of issues and to discuss what’s ahead. If you have any concerns with building matters or NZCB, please contact your regional president and they will table these topics so they can be discussed at the zone meetings and if applicable, take some action.

Grant Florence Chief Executive

“Bob’s nail gun is

olD-as but it looks

brand spanking.” Building stories. When you live to support those who live to build, you spend a lot of time listening to them. It’s how we learn what makes your business tick so we can give you all the support you need to get the job done. That’s what makes us the building supplies specialist. See more building stories at itm.co.nz/livetobuild