NZCB InHouse Magazine August/September 2018

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

August/September 2018 — How to Price Labour

Pg 15

What you Need to Know about Respirators

Pg 28

Centrespread —

The Nation’s First 10 Homestar Renovation Pg 20

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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

NZCB NEWS

NEXT GENERATION

Message from the Board

2

A Broader Perspective

Message from Operations

3

Revere Volume Two Submissions

14

Halo Guarantee – Gold Nuggets

16

What is Statutory Liability

17

Message from the Chief Executive

41

20

TECH TIPS Get Clever with the Cloud

30

19

THE SUPER RENO – STEP INSIDE THE NATION’S FIRST 10 HOMESTAR RENNOVATION

5 Ways Tech will Boost your Profitability 35 Quick Tips to Help Your CV Standout From the Crowd

HEALTH AND SAFETY Breathe Easy – What you Need to Know about Respirators 28

IN THE KNOW How to Price Labour

15

At what Stage in the Project is your Workmanship Judged?

26

Suspension of Six Aluminium Composite Panel (ACP) CodeMark Certificates

31

Show me the Money!

33

Keeping Records of Employment Discussions

37

CERTIFIED PLANS Two Certified Plans Merged to Create One

Zane Raphael of Renovation Builders bought a rundown 1967 house in Greenhithe and created a beautiful and healthy family home.

38

39

AROUND THE REGIONS NZCB Visits Highlands Motorsport Park

5

NZCB Play-castles Donated

6

The Social South

8

Building Trade Professionals Latest Workshop

9

Shane Ririnui – North Island

10

Nick Matthews – South Island

11

Industry Events Calendar

13

InHouse is the official bi-monthly magazine of New Zealand Certified Builders Association. We’re always on the lookout for interesting stories or build projects that NZCB members have been a part of! To share your story with us please contact Linda. Alternatively, if you are interested in advertising in the InHouse magazine, we have a range of opportunities available to suit every budget.

Linda Moody

INHOUSE EDITOR

linda@nzcb.nz | 07 557 9214

Find NZCB on

NZCB NEWS — Mark Dobbs NZCB Board Member

Seventeen Years On …

Kevin Sceats was recently elected as Chairman of the Board and brings with him some fresh ideas and changes. Typically, the chairman writes the InHouse magazine article, but Kevin has suggested that each board member takes a turn, in order to bring a variety of perspectives. I’m first off the block to do this and I thought I would write about my time with NZCB. I joined Certified Builders Association of New Zealand (CBANZ), as it was known back then, in April 2001 as member number 547.

There were only around 15 Business Members in Whangarei at that time, and we were (and still are) a tight-knit group.

I joined because, back then, the building industry in Whangarei was slow, and chippies were cutting their rates to get work.

I needed a point of difference to win jobs, and being able to offer the Homefirst 10-Year Guarantee was a great bargaining tool for me. This, along with the suite of CBANZ contracts, gave me a professional edge, and I started winning most of the jobs I went for. I increased my staffing level at that time to around seven and went from strength to strength as a young businessman.

In 2004, I was elected as the local CBANZ president. I was nervous about taking on the role, but quickly picked it up and thoroughly enjoyed it. With the help of my mother-in-law as secretary, we grew the attendance at our bi-monthly meetings from five to around 35 members. I was fortunate that the members of Whangarei have always been a great bunch of blokes and turned up to the meetings to support me.

After four years in this role, I was elected to the Board of Directors in 2008. I attended my first board meeting prior to the Napier/Hastings conference, when Richard Merrifield was the chairman. It was a big step up from the president’s meetings and one that I relished.

In the 10 years that I’ve been on the board, there have been significant changes. We’ve seen a shift in chief executive from Derek Baxter to Grant Florence; created and launched the Certified Plans range; halved the size of the board (two years ago); rebranded and renamed to New Zealand Certified Builders Association (NZCB); built our own National Support Office building; and launched the Halo 10-Year Residential Guarantee, administered by a different provider – BrokerWeb Risk Services. I feel privileged to be part of the team that has helped to make these changes happen.

Seventeen years on, I have to say that I am incredibly proud of how our association has grown to be recognised and respected as the premier association of qualified building professionals in New Zealand. I believe our philosophy of making sure we support and educate our members has helped to attract the best qualified builders in the country and to raise the bar in terms of quality business and building practices.

2

NZCB NEWS — Jason McClintock Operations Manager

Dancing with the Devil Removing just a few sheets of asbestos-containing material, can’t hurt me, right?

The physical effects may never be truly known but, for one retired tradie, the effect on the back pocket was felt pretty quickly. John Robertson was prosecuted in the New Plymouth District Court for reckless behaviour when removing sheet material containing asbestos. John was once a painter/ decorator who also offered the services of asbestos removal.

In 2017, he was asked to remove material from a shed that was going up for sale. John’s botched job required the new purchaser to have someone else come in and finish the job off properly.

There were only six fibre building sheets for John to remove, but this turned into a big headache for the 74-year-old, when he was convicted on three charges under the Health and Safety at Work Act. John used a hand tool to break up the material, without using masks or proper protective clothing, and with no way of containing the particles that might become airborne. Despite past training, and an improvement notice, John failed to advise WorkSafe of the Class B work being undertaken.

This reckless behaviour had just put John, other workers on the site, and people in neighbouring properties at risk. This was reflected at the hearing, as Judge Sygrove recognised John’s actions had deviated from reasonable practice. Judge Sygrove proceeded to hand down a $35,000 fine, along with remediation and court costs of $3,878.29. The fine would have been larger, but Judge Sygrove acknowledged the financial situation of the retired painter and reduced the amount accordingly.

Class B asbestos work Class B asbestos is considered a lower risk than Class A, which requires specialist equipment and removal. Class B asbestos is non-friable and can be found as a bonding agent in plastics and cement-based products. Amounts less than 10m2 of non-friable asbestos can be removed from a site without the need for the removal to be carried out by a licensed practitioner. However, it still has to be done in a safe manner, or we run the risk of ‘dancing with the devil’ and ending up like John the painter: prosecuted for unsafe practices. It is becoming popular for builders and site managers to take on formal asbestos-removal training, so they can prove their competence when undertaking such work.

Removing asbestos regularly To get an appreciation of what it takes to regularly carry out asbestos-removal work, and the compliance these specialists have to deal with, check out my ‘Chew the Fat’ session with Jarod McKeown of Ceiling Restorations Limited. You’ll find it in the NZCB members’ ToolShed.

For further information on handling asbestos, check out www.worksafe.govt.nz; they have dedicated information for the trades.

3

PLACEMAKERS SUPPORTING APPRENTICES PlaceMakers were thrilled to be a sponsor of the NZ Certified Builders/ ITAB Apprentice Challenge in May, providing the winner’s prize pack valued at $5,000 and smaller prize packs for the regional finalists.

The first prize winner was Matt Hatchard, who is also a member of the PlaceMakers Apprentice Crew (PAC). PAC – a support crew for building and construction apprentices was launched by PlaceMakers in March last year, in an effort to back more apprentices, regardless of their year of study. PAC members get access to a range of perks and resources, including the ‘Graduates’

APPRENTICE CREW

Toolbox’, aimed at lending a hand to apprentices who have just completed their studies.

A third-year apprentice with FoxBuild in Northland, Matt’s drive to succeed has been apparent from the beginning. He said he became a carpentry apprentice in order “to better myself, and become tradequalified at a high standard”. At 36 years old, Matt enjoys “learning and applying new skills and constantly pushing myself to discover better ways to achieve the results I want.”

“The same drive and determination is evident when reviewing applicants

for the PAC Apprentice of the Month”, says Trade Engagement Manager, Andrea Albertyn. “It’s a chance for PAC members to reflect on how far they have come by thinking about their latest challenge and what they did to overcome it. For PlaceMakers, it’s an opportunity to recognise and celebrate their learning strides”.

For PlaceMakers, supporting apprentices across NZ is a longterm commitment. PAC members can continue to look forward to a range of exciting activities and opportunities.

Anyone interested in joining can visit pac.placemakers.co.nz.

Matt receiving the Ken Read Memorial Trophy from Doug Manu, then-Branch Operator at PlaceMakers Whakatane. Doug has since moved to PlaceMakers Dunedin.

The ITAB regional finalists pictured with the PlaceMakers team at the Certified Builders conference.

PAC.PLACEM AKERS.CO.NZ

Follow us at facebook.com/pac.placemakers

AROUND THE REGIONS —

NZCB Visits Highlands Motorsport Park On a frosty Central Otago winter’s morning, 21 NZCB members visited Highlands Motorsport Park in Cromwell. The minus-one start to the day didn’t dampen any of the enthusiasm we shared, or our passion for cars that go fast … really fast!

The Highlands team welcomed us into the GT lounge, a member-only area that overlooks the race track and the world class facilities that the motorsport park offers.

Introductions and formalities completed, we split into two groups, ready for a mix of self-drive and driven activities.

My group started with the Subaru WRX Experience, followed by GO Kart racing, then a tour through the Motorsport Museum. Many of the exhibits, which are a mix of privately owned and donated cars, have links to NZ’s motorsport history.

The museum tour included a BaTak Challenge, which is an interactive activity that helps to improve handeye coordination. The best result on the day was 40 reactions in thirty seconds – some way short of the Highlands record of a race driver who scored 61 reactions in thirty seconds!

Twenty NZCB members in the GT Lounge at Highlands Motorsport Park.

The highlight for most of us was the ride in the Highlands Taxi, a driven tour around the race circuit in a Porsche Cayenne. The driver, a true professional, took his time to share some of the history of the park and features of the race circuit before unleashing the Porsche, reaching speeds of 190 kph.

Meeting back in the GT lounge, our groups assembled, and the results were announced. Thanks to the generosity of Mitre 10, prizes were awarded for quickest and slowest drivers (no names mentioned), who received gift cards and branded merchandise. (Cheers, Mitre 10 Queenstown and Dougal Pavitt, for your support.)

There was one more prize, however, and for Paul Dunstan and Stefan Cammell, I’m pretty sure the highlight was their names being drawn out of the hat for a ‘Fast Dash Lap’ in the Ferrari 488, compliments of NZCB Central Otago. Stefan said he never looked at the speedo: he was too busy holding on! But the driver did mention something about 260 kph …

Thanks to all who attended, especially the guys who made the effort and travelled from out of town.

5

A look inside the Motorsport Museum.

Nick Matthews Business Development Manager – South Island

AROUND THE REGIONS —

NZCB Play-castles Donated During April, 98 carpentry apprentices from all around New Zealand took part in the annual NZCB Apprentice Challenge. While not all who entered the competition finished the project, some minor finishing work carried out by passionate NZCB members meant there were still plenty of play-castles available for donation to worthy recipients.

Canterbury In Canterbury, NZCB donated a play-castle to the Cancer Society, a not-for-profit organisation that relies on donations from members of the public to operate and provide support to those affected by cancer. The play-castle was auctioned off as part of a digital silent auction, held in conjunction with the society’s Annual Charity Ball, and helped to raise over $32,000 on the night.

Hawke’s Bay NZCB Gisborne donated one of their playcastles to Gisborne Central School for their bingo night. The school’s parent support group organised this fundraiser, with all profits going towards a covered roof-shelter over the school’s netball courts. This is to maximise the children’s outdoor play time for both wet and scorching-hot days. The play-castle was one of 20 auctions and it was matched with a range of toys to create a complete kids’ package.

Finished and painted by Nick Matthews.

The donated play-castle was placed at the front of the hall during the bingo night and was auctioned off with a collection of kids’ toys

6

AROUND THE REGIONS —

Otago One of the six play-castles from the Otago competition was donated to the Te Kaika health and wellbeing hub, including the Mataora health clinic in Dunedin.

Youngsters Emerenziana Tuia (6), Aleiyah Gielen (6), Innocence Stevenson (9) and Amaiyah Tanuvasa (7) welcome the new play-castle!

Bay of Plenty In Tauranga, local president, Paul James, presented a play-castle to Julie Christophersen, a registered nurse for Child & Youth Outpatients at Tauranga Hospital.

Julie gave a word of thanks: “Congratulations to your organisation and apprentices for gifting this fabulous play-castle! Thank you so much for this generous gift. On behalf of the children and families who attend the clinical setting here, I can only imagine the delight it will bring!

Many of the children and families have multiple healthrelated appointments. There is a wide range of health complications which result in frequent visits and sometimes unpleasant procedures. Starship specialists hold clinics here to reduce further impact to families with high health needs to make it easier for people.

This reduces the extra burden of traveling to Auckland or Waikato.

The donated play-castle was constructed by Tauranga’s winning apprentice, Cameron Diack, and artistically painted by one of Tauranga’s talented committee members, Jason McClintock.

Once again, thank you for your kindness!”

7

AROUND THE REGIONS —

The Social South On the 22nd June NZCB Otago decided to make the most of the chilly winter and spend some quality time “upskilling” – so off we went fishing!

Even though numbers were small, the day was a great success involving plenty of networking and telling stories probably larger than the fish we caught!

The next social event to hit the calendar was just a few weeks later and it was definitely a day to remember! Thanks to NZCB Central Otago president Andy McRae who invited our region to enjoy an adrenalin filled day at Highlands Motorsport Park! It was an awesome day for us boys to be boys! The work ute didn’t quite cut it on the drive home! I wonder how many LBP learning points this type of event could count for?!

Nigel Lawson

Ross Lunn

John Laverty

Sacha Gray

It was a privilege to donate the NZCB Otago golf day proceeds to the Prostate Cancer Foundation.

Last but not least, thanks to ITAB, Otago Polytech and PlaceMakers for inviting us to join them on their stand during a big breakfast event. It’s always a privilege to promote the association to potential future members!

Sacha Gray NZCB Otago President

NZCB Otago President, Sacha Gray presents a $5585 cheque to Ken Cook from the Prostate Cancer Foundation in Dunedin.

8

From left: Grant Beel (ITAB), Matt Thompson (Principal Lecturer Otago Polytech), Larry Green and Sacha Gray (NZCB members).

AROUND THE REGIONS —

Maintaining Margin Through Project Management Building Trade Professionals Workshop A project manager wears many hats during the course of a building project and to do it well isn’t a walk in the park.

That’s why NZCB has joined forces with project management specialists, Xigo, to deliver workshops throughout the country to up-skill the building industry, ensuring clients are happy on project handover and contracts are hitting their margin targets.

NZCB Operations Manager Jason McClintock says the project manager holds overall responsibility for the project so it’s important proper programming and procurement is carried out. Skills such as meeting contractual responsibilities via execution, monitoring and control of the works and ensuring successful closure of a project aren’t taught during an apprenticeship and take years of practical experience to hone.

“I’m surprised at the lack of homeowner and practitioner understanding of what the role of the project manager really is. Some builders offer project management services to clients when their true service offering is closer aligned to site supervising.

By contracting into the role of project manager they’re actually assuming a lot more liability and accountability than they realise.”

Jason McClintock – NZCB Operations Manager

Upcoming workshops

To find your local BTP Workshop, keep an eye on your inbox or visit:

A building project is a busy environment, which can lead to lost margins if not managed properly. The workshops, being held throughout New Zealand are for members and invited guests, proudly supported by GIB® and Metro Performance Glass.

INTRODUCING XIGO

www.nzcb.nz/ event-calendar/

The team at Xigo believes there’s more to project management than running spreadsheets and making phone calls and that success lies in the detail. Xigo takes a holistic approach to projects, which incorporates concept, objectives, strategy, leadership, stakeholder management, effective communication, constant monitoring and targeted action points.

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North Island will be presented by Darryn Holmes and John Pengelly from Xigo and South Island will be presented by NZCB Operations Manager Jason McClintock

AROUND THE REGIONS —

Shane Ririnui Business Development Manager – North Island

Northern News Kia ora!

Just a quick update – we have passed the quiet period of the year, and the beginning of the busy wind-down to the end of 2018 is upon us. So start planning in advance to make sure targets, promises, and deadlines are met. It is better to be well-prepared, organised, and proactive than to be rushed, ‘behind the eight ball’, and having to react to urgent situations.

I have been out and about in the regions, attending trade evenings, home expos, LBP days, the Far North boxing fundraiser, and even a cultural experience at the Asian Construction Forum. With the regional trade evenings, it has been tino pai (very good) to see increased member turnout and great engagement with the guest speakers and sponsors. These networking opportunities are an important part of trade evenings.

As I see it, it’s a two-way street: NZCB members get the chance to become aware of who our valued Partners are and what they might have to offer, while the guest speakers and sponsors get the chance to engage with potential customers.

The next Building Trade Professionals (BTP) workshops are coming up in September, where we will cover the popular topic of Project Management.

This series will sit nicely alongside the BTP workshop, ‘Pricing for Profit’, held earlier this year. If you were unable to attend that workshop, don’t forget you can watch a light video version on the NZCB members-only Facebook group or on the members’ ToolShed.

See you all in the regions.

Ka Kite

TANZ, Marshall Innovations, BrokerWeb Risk Services and Anzor presented to the Hawkes Bay members.

10

AROUND THE REGIONS —

Nick Matthews Business Development Manager – South Island

Fast Times in Central Otago At the top of the South, regional trade training evenings were held in Blenheim and Motueka on the 7th and 8th of August, respectively. The evenings focused on business basics for builders. My co-presenter, Tracy Eddy of BrokerWeb Risk Services (BWRS), discussed what type of insurance policies are considered the minimum requirement and how much cover is considered appropriate, while I delivered a light version of the Building Trade Professionals (BTP) workshop – Pricing for Profit. Do you know the difference between markup and margin? If you don’t, you could be undervaluing your services and leaving profit on the proverbial table. There’s a great online video on the NZCB ToolShed, presented by Jason McClintock and Shane Ririnui; they’ll step you through what mark-up and margin mean and how to apply both.

The Fast Group – Highlands Motorsport Park, Cromwell

I’m not just talking about the lap times of those like-minded racing-car enthusiasts who came together to visit Highlands Motorsport Park.

The Central Otago region continues to enjoy high levels of construction activity in both the light commercial and residential markets. Those local members who attended the Highlands event, when not talking cars, were discussing workloads. It was pleasing to hear that many of our members are still benefiting from the region’s popularity.

Our tour group was a mix of both local and out-of-town members, who were made to feel very welcome by the Highlands team, as they treated us to a morning of ‘petrol-head’ heaven. While not for everyone, the event was something different from the traditional golf day or fishing trip. We all agreed it was well worth the effort and highly entertaining. (For further details about that visit, see the article on page 5.)

NZCB Central Otago held a similar trade training evening in Queenstown on the 21st of August. As well as the BWRS insurance presentation, Pauline Wrigley from the Employee Wellness Programme (EWP) spoke to attendees on employee wellness and how, as an employer, you can maximise the productiveness of your team by providing a great working environment.

In Christchurch, members attended a factory tour of Hagley Windows & Doors on the 15th of August. Held in collaboration with APL Window Solutions and Altherm Window Systems, the evening was informative and interesting. Attending activities like this can increase a practitioner’s knowledge, plus they can gain meaningful skills-maintenance points required for licensing. It was good to see so many members supporting the event.

Finally, keep an eye out for Dave Wallace, who is building for the Gisborne couple on a popular television renovation show. Dave won the Chairman’s Personality Award at the 2017 NZCB Apprentice Challenge, and his personality is certainly shining through on camera. Good luck, Dave!

See you in the regions.

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FINANCIAL SERVICES

3.9

%

ENTIRE

P.A. FINANCE

ACROSS THE

TOYOTA NEW VEHICLE RANGE

Finance offer is on any new vehicle purchased from participating Authorised Toyota Stores in New Zealand from 1 September 2018 to 31 December 2018, on a ‘Classic Finance Loan’ through Toyota Financial Services with a minimum of 10% deposit for terms up to 36 months. Offer is subject to Toyota Financial Services normal lendingcriteria.An establishmentfeeof upto $400 anda$9.20 PPSR feeispayable. Offerissubject to availability. The advertised TDP is for the vehicle only, ORC and GST included. The advertised TDPs are subject to change at any time. For full terms and conditions visit our website, www.toyota.co.nz

AROUND THE REGIONS —

Industry Events Calendar BUILDNELSON An expo for building professoionals

SAVE THE DATE!

06 SEPTEMBER

3–7PM ANNESBROOK 40 SAXTON ROAD | STOKE • Are you a tradie or studying carpentry?

• Do you like to keep up to date with building industry products and services?

• Enjoy receiving freebies and great prizes?

• Want to earn some LBP points?

Then join us for the biggest Build Nelson Expo yet!

Entry is free and there are over 50 trade exhibitors!

DON’T MISS OUT ON THE

2019 NZCB Conference & Expo

14–15 JUNE 2019 CHRISTCHURCH CITY

To register see www.itm.co.nz/lbp

NEW ZEALAND’S LEADING CONSTRUCTION TRADE SHOW

RESIDENTIAL

FREE EVENT

COMMERCIAL

TRADE ONLY

INDUSTRIAL

4pm-7pm

Round 4: AUGUST

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CONZTRUCTION

ZONE

NZCB NEWS —

Volume Two Submissions are Under Way Now! With over 10,000 copies of Revere – Volume One now circulating nationwide to NZCB members, architects, designers, lawyers, accountants and other places where our target market may frequent (e.g. Air New Zealand Koru Lounges), the feedback has been extremely positive.

For further information and an application form, please contact

The great public response, and the interest from members wanting to be involved in the next edition, has led us to decide that Revere – Volume Two will be published towards the end of the first quarter of 2019.

Submissions are now open, and we look forward to hearing from you!

Julie at the National Support Office: on 07 927 7720 ext 707 or julie@nzcb.nz

ENGINEERED FLOORING SYSTEM.

30086

Appraisal No.964 [2017]

RE DYSuperslab READY Super Slab is an engineered flooring system, known as a raft foundation, that can be used on all ground conditions regardless of your land classificaiton.

You will still need to apply for consent, however the CodeMark means no delays at council.

Visit alliedconcrete.co.nz to find out more and download the CodeMark Certificate and BRANZ Appraisal.

READY Super Slab is now CodeMark-certified meaning building consent authorities will accept it as complying with the New Zealand Building Code*.

*Must be used as specified in the CodeMark certificate.

Consult your Allied Concrete representative for specialised information.

0800 4 ALLIED

0800 4 255 433 | www.alliedconcrete.co.nz |

Member of

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Contact us to find out more: 2018 Inhouse Half Page Superslab 186x133.indd 1

26/07/2018 10:25:42 AM

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IN THE KNOW —

How to Price Labour Pricing labour? You mean look at the plans, scratch your head, and decide that three guys onsite for 12 weeks should be plenty, right?

Wrong!

On a recent survey I sent out – that many of you responded to, almost every single person wanted to know above anything else about how to price labour.

Believe it or not, there is a science behind it, and it is not a mythical unicorn! There are a few key things that you absolutely must have correct to be able to get an accurate labour calculation.

1. Your materials measure must be SPOT ON. If you find that your supplier take off tends to be a bit off and you often have to order extra materials, then this is not the measure to rely on for your labour calculations.

Do yourself a favour, get out the scale ruler and your calculator, and make sure you know the measurements for every single item on the plans. Grab yourself a copy of the latest Australian and New Zealand Standard Method of Measurement (ANZSMM 2018) which supersedes the original NZS4202. Run through the carpentry and concrete sections (and any other sections that relate to your scope) and measure each item stated. If you can’t be bothered, get your QS to do the hard yakka for you. Why go to this effort you ask?

So this calculation gives you two important things. It is able to be used and multiplied against your hourly rate to provide a dollar value for the labour only. It also tells you what your man hours are that you will need for the job, which in turn gives you your site time that you can calculate your P&Gs against, adding in for subcontractor time and the like. These man hours should also be used to help you track the job, for instance if you have 20 man hours set aside for installing plasterboard, and your time sheets say that you actually took 40 hours, then you know to ask what happened…. Did something change onsite? Should you be getting a variation? Or is one of the team slacking off?

Bottom line…. The materials measure accuracy is extremely important, and is used to calculate labour only jobs, and full tenders. It is also the backbone of an easy back cost and making sure you pick up on your variations. It is well worth being vigilant!

2. Because….. you are going to use each and every one of those material measurements, and you are going to apply a labour constant to all of them. The definition of a labour constant, is the metric measurement of how long it takes the average guy to do the average job on the average day broken down into units. Before you start to panic, labour constant data is available however you should always adjust it for your own team.

You can find labour constants in books such as The Ready Reckoner, or on subscription websites, like QV Costbuilder.

An example of how a labour constant works: Task – Installing wall studs 100x50 timber Your measure for this item across the build is 89.2 lineal metres.

The labour constant for installing 100x50 wall studs is 0.13/lm.

Therefore, 89.2m x 0.13 = 11.59 hours.

11.59 hours at say, $50/hr = $579.80.

By Victoria Harrison, Director Red QS Red QS is primarily the builders QS, providing bespoke quantity surveying services to builders and sub trades, large and small, all across New Zealand. The team has an exceptional level of skill across the board, and our services are available on an as when needed basis! Sassy and fresh, creative and clever, we are proud to be part of the Construction Industry in New Zealand. See www.redgroup.nz for further information.

15

NZCB NEWS —

Halo Gold Nuggets We’ve put together some gold nuggets to ensure your Halo application is smooth sailing from start to finish! Below are some of the common speed bumps that NZCB members are encountering which is slowing down the Halo application process.

Certificates of Practical Completion (CPCs) • When completing CPCs make sure all fields are completed.

• Ensure you have checked the Lot/DP numbers etc as these identify the building the cover applies to.

• Do not include the value of land, driveways or paths – these are not covered by the guarantee.

• Ensure the earlier of the date of possession or the date of practical completion is noted, not the date CCC is issued or achieved.

Halo + Online Building Contract Automation = making your lives easier!

As you will be aware, online Halo applications are automatically sent to the Halo Division overnight if certain criteria are met when you complete and download an online building contract on the members’ ToolShed. You do not need to email through a separate application form. The most commonly missed or incomplete sections are: • The site address (often missing the suburb or town) • The description of work being carried out. The only information that is submitted to the Halo team is what you physically enter into the building contract, therefore “Renovations” just won’t cut it! We need to know what you are building!

• Building materials. If you are not supplying any particular materials, please note N/A in the appropriate sections.

Spec Homes If you’ve built a spec home for yourself or someone else, please send through a Builder Spec Home Transfer Form or a Transfer Request Form with the CPC so you are not charged a transfer fee.

Emailed Applications Please ensure any additional information is sent through to the Halo team as soon as possible to avoid delays in processing. Some applications have taken up to two months to finalise because we’ve been waiting on information.

Please record the owner’s email address clearly and correctly. We often have documentation bounce back as undelivered due to incorrect spelling.

General Please send through only one application or CPC per email – these are filed electronically for each build and will help preserve privacy in the event that someone requests a copy of documentation further down the line – other peoples’ CPCs or applications will not inadvertently be sent.

For any queries contact the Halo Division at BrokerWeb Risk Services on 0800 644 444.

If you end up completing more than one contract for a job, please be aware that each one will generate an automatic Halo application. Get in touch with us as soon as you can and let us know which version to process.

Login to the members’ ToolShed for the latest documentation including the Halo application, CPC and premium and excess chart. Please quote your policy number on any communication or documentation sent through to the Halo team. For any queries contact the Halo team at BrokerWeb Risk Services on 0800 644 444.

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NZCB NEWS —

NZ

CB’ S

RRED

What is Statutory Liability?

PREFE

ANCE IN S U R E R S !

BROK

Statutory Liability Insurance is designed to help protect you and your business for fines or penalties imposed by the courts and the costs of defending yourself for unintentional breaches of most laws in NZ. All Statutes of Law are covered by this insurance, other than Criminal Acts.

The recent introduction of the Health & Safety at Work Act is an example of increased exposures faced by Companies, Directors and Senior Management. Whilst fines cannot be covered under this act, reparations ordered are covered along with legal defence costs. If a person is injured on a work site, WorkSafe will investigate and report if the Employer has been negligent in not providing a safe work place. If you are found guilty of this, you can face large fines as well as being ordered to pay reparations to the injured employee.

New Zealand Courts can order offenders to pay additional financial compensation over and above what someone may receive under ACC. Builders and tradespeople may also have an exposure under the Resource Management Act. For example, if an employee accidently spilt some paint or chemical that washed into a nearby stream and killed all aquatic life, you would likely incur fines as well as legal costs.

The REDi Liability package also includes cover for fines ordered payable by the Building Practitioners Board which have arisen from an action under the Building Act.

In late 2014, the Sentencing Amendment Act was introduced. New Zealand Courts can order offenders to pay additional financial compensation over and above what someone may receive under ACC, including loss of current and future earnings from a personal injury.

If a young employee was seriously injured on a worksite due to negligence of the employer, the court could award payments to the employee for a number of years if they are no longer able to work. This could amount to hundreds of thousands of dollars over 40-50 years.

It is recommended that you review your current Liability Insurances to ensure that you have cover included for Statutory Liability Insurance with a minimum Limit of Indemnity of $1,000,000.

For a free review of your existing portfolio, contact the REDi division at BrokerWeb Risk Services on 0800 644 444.

It is recommended that you discuss your individual situation with your Insurance Broker.

Your REDi Builders’ Insurance is administered by BrokerWeb Risk Services Ltd. For a free review of your existing portfolio, you can call Brokerweb Risk Services on 0800 644 444.

17

NEXT GENERATION —

A Broader Perspective On a recent trip to Europe and the United Kingdom, I not only enjoyed some great weather but got another perspective on vocational training.

When we are working hard and focussed on what is right in front of us, it is tempting to forget about the positive aspects of our construction environment. While some have misgivings about aspects of the New Zealand model, I came back quite heartened by what we achieve.

In comparison to some countries, recognition of trades in New Zealand is fairly high (and seems to be increasing within New Zealand). Job and career pathways are strong, and the training model(s) on offer enable achievement of goals. From what I saw, that’s not the case in some other parts of the globe, and the capability and skills of our New Zealand construction graduates are still sought after here and around the world.

Brian Dillon Chairman AST Trust

ITAB trainees and graduates make a significant contribution to that performance, and that is a combination of proven practices such as block courses, as well as addressing modern-day needs through hardship grants, and excellence awards.

In August the AST trustees are meeting to work on the arrangements that will inform alignment of AST and ITAB. This is an exciting step for the AST and ITAB, as well as for the training providers and NZCB. It will provide more clarity for all involved, and ensure that the commitment to polytechnic-based carpentry apprenticeship is sustained so that we can maintain that status of producing worldclass capability.

NZCB Tauranga Districts President Paul James, presents a $3,000 donation to Chairman of the AST Trust, Brian Dillon. Thank you for your support!

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The Super Reno When Zane Raphael of Renovation Builders bought a rundown 1967 home in Greenhithe, he had no idea he was about to embark on what’s now been dubbed ‘The Super Reno’ – North Island’s first stand-alone 10 Homestar Built rated house, and the nation’s very first 10 Homestar Renovation.

Zane knew he didn’t have to look past friend and colleague Allan McIntosh of Buildology Architectural Design to create a dream home for his wife Suzanne and daughters Imogen (eight) and Trinity (five).

Over the course of 12-months, Zane (a Homestar practitioner) and his team at Renovation Builders nailed every detail and produced an exceptional example of Kiwi living. Careful design considerations and a boastful Homestar inventory combined to create a unique, healthy and beautiful new family home.

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Diamond in the rough Prior to the renovation, the existing home was fortunately north-east facing but there were many areas in dire need of improvement. The walls had no insulation and were damp and gap ridden, preventing heat retention. Original 1960s timber joinery sufficed in summer, but under-performed in wet and windy winter.

The asbestos-laden 120m2 roof was the first of many areas to be removed and replaced.

“The home had been a rental for many years and was really rundown,” says Suzanne. “It was draughty with holes in the walls and rats living in our ceiling space. Condensation and mildew were constant problems and the house was impossible to heat.”

BEFORE

While they began with simple intentions of renovating their home, the couple quickly caught the ‘healthy home bug’. Once they got started, Zane says they became “motivated and excited to see how far we could push this project.”

With a specific brief in mind, Zane and Suzanne engaged Buildology for design services and a Homestar assessment.

The fact Zane and Allan have collaborated over the years provided a positive platform from the outset, with no stone left unturned during preliminary design.

“The cost of renovating a home to a 6 Homestar rating is similar to a normal renovation. However, with smart design and a 10-15 percent cost increase, it’s possible to achieve an 8-9 rated Homestar home,” says Allan.

Both parties believed it was crucial to build as sustainably as possible so design considerations allowed for much of the existing timber framed walls to be reused along with the concrete slab footprint. Tired existing direct-fixed timber weatherboards made way for an additional layer of insulation before being re-clad with a heat treated vertical pine over cavity. Encased in the striking new walls was extra highperformance, thermally broken, low E glass, Argon gas-filled double glazing.

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BEFORE

BEFORE

The final reveal The ‘before’ and ‘after’ is incomparable. The new home boasts a metal corrugated roof with a combined insulation R-value of 5.3, complemented by a combined 2x R1.8 underfloor and R3.8 wall insulation. Zane and his family battled constant colds and sickness in the old house, which meant heat maintenance become a large focus. Today, a new Heat Recovery Ventilation system allows for a constant flow of fresh air to move passively throughout the house.

that will store solar energy, allowing for a sustainable 24/7 power supply. When the weather turns, a 26 cubic metre underground tank is ready to store roof-surface rainwater to supply the house and irrigation systems.

While soaking up the sun on the uncovered and covered outdoor living areas, photovoltaic panels on the roof now harness energy to be used throughout the house. When the technology becomes more affordable, this new system will allow batteries to be connected

23

Lifemark certification credits homes that are accessible and safely designed, while meeting the needs of our ageing population and those with limited abilities. The highest 5-star certificate was awarded for the home’s new additions and adjustments, including level thresholds, wheelchair access, door widths, taps, switch heights, power point placements and future-proofing for grip bars installed in the bathrooms.

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A healthy, sustainable family home The Homestar checklist is extensive, with seven main categories and over 30 subcategories – each contributing to the points system. Zane says there are three relatively simple things people can apply to their renovation to make their homes healthier and greener: • Increase insulation R-values – the minimum requirement is still very low so anything greater is a bonus • Lighting – LED lighting not only looks better than incandescent lighting but it can also make a big difference to electricity usage • Quality tapware (that regulates the amount of water passing through) will contribute to lower consumption without compromising water pressure.

25

Zane and Suzanne are ecstatic with what feels like a brand new 265m2 home. The modest property holds a double garage with electric car charging capabilities, four spaciously sized bedrooms, three bathrooms, kitchen, scullery and laundry, as well as a large living area with separate study. All living areas, as well as the master suite, open to sun-drenched decks. With fine details finished to immaculate precision, this home will continue to impress with low running costs in years to come.

The Super Reno was made possible thanks to suppliers jumping on board to help push for better, healthier homes in New Zealand. For more information, see our latest blog post at www.homestarproject.co.nz.

IN THE KNOW —

At what Stage in the Project is your Workmanship Judged?

By Geoff Hardy of Auckland law firm Martelli McKegg Consider this scenario. You are doing a major renovation project. Your relationship with the client is very cordial at the outset and the first few invoices are paid promptly. After a couple of months your client has a few niggles and is questioning the quality of some of the workmanship. Then you are informed by email that there will be no further payments until major portions of the work are re-done and the job is completed.

You disagree that any rework is required so you offer to get an independent builder in to review the situation and provide a second opinion. You are informed that the owner has already obtained their own expert report.

Their expert has neither spoken to you nor conducted a site inspection with you, and despite your request for a copy of the report it is not supplied. The client later advises you that they are seeking legal advice.

You have incurred costs for scaffolding, some of which you absorb yourself and some of which you invoice to the client. You are still willing to continue the job at this point, but the scaffolding invoice remains unpaid, so you file a claim in the Disputes Tribunal. In response, the client cancels your building contract, and obtains quotes from other contractors to re-do all of your work from scratch. Since her counterclaim exceeds the jurisdiction of the Disputes Tribunal she commences legal proceedings against you in the District Court, seeking damages for the entire cost of the rework.

Sound a bit extreme? It may do, but it is a situation that we encounter every week, and it is pretty much what happened in the 2016 District Court case named Tugaga v Westend Painters Ltd which is discussed below.

These situations sometimes arise because the builder has simply been unlucky enough to fall victim to the small percentage of the population who are either dishonest or who are so distrusting or dysfunctional that their lives are marked by one failed relationship after another. But it can also happen when your clients are

26

relatively normal, but they have become stressed out by budget blowouts that weren’t adequately signalled in advance, unexplained builder absences during working hours, minor damage to their property which they are left to fix up, a building site that is continuously untidy, and building work that doesn’t meet their expectations.

When that happens, they start to jump to conclusions about the builder that may not be justified but are simply due to human nature, and it just escalates from there.

It isn’t helped by the builder who doesn’t detect those signs and put the clients’ concerns to rest promptly.

You cannot terminate his contract or claim damages for poor workmanship simply based on the standard of work done to date.

In Tugaga v Westend Painters Ltd mentioned above, the client made a fundamental mistake. The client had suspended payment, cancelled the contract and threatened to bring in a substitute contractor, all based on the assumption that the workmanship was defective.

But the frustrating thing for the contractors was that their work had been brought to an end prematurely.

The job was only partially complete, and there was every reason to suspect that it would be finished to a satisfactory standard before it was handed over. In those circumstances, how could you possibly say that the work is defective?

To his credit, Judge Harrison In Tugaga v Westend Painters Ltd recognised that. He said that if a tradesman is ready, willing and able to complete his work and that work is not yet completed, then you cannot terminate his contract or claim damages for poor workmanship simply based on the standard of work done to date.

IN THE KNOW —

by completion, then the contractor will only have breached his obligations if the work does not meet that standard on completion – assuming there had been no unreasonable delay or wrongful refusal to remedy some work that was sub-standard.

You can hardly complain that the work is sub-standard if you have prevented the contractor from doing his job properly in the first place.

In another September 2002 case Yu & Yu v T&P Developments Ltd, the Court of Appeal commented that it is a bold move to cancel a building contract partway through, on the basis that the work has not been completed in a proper, thorough and workmanlike manner, when the builder had not suggested that he had finished and there was no evidence that the defects simply could not be rectified.

The point in time when you judge the standard of workmanship is on completion, and not before. You can hardly complain that the work is sub-standard if you have prevented the contractor from doing his job properly in the first place.

The client appealed this decision to the High Court, but lost. In upholding Judge Harrison’s findings, Justice Fitzgerald said that most of the work was to an acceptable standard. While there were some minor defects, there was no evidence that they could not have been remedied prior to completion. The outcome was that the contractor was awarded payment of its outstanding invoice, interest, and costs in both courts, after two trials spanning three years which presumably cost more than the amount that was being argued over.

There had been a number of earlier New Zealand cases that had essentially said the same thing. In the 2001 case Oxborough v North Harbour Builders Ltd, the Court of Appeal said that if the dominant purpose of the contract was to do the work to the required specifications

27

This followed another Court of Appeal decision Adkin v Brown in March 2002 that confirmed that you could not terminate a building contract for failing to achieve structural safety standards if it was still possible to do the remedial work identified by the expert so as to produce a structurally safe building.

The lessons to be learned from this line of cases is clear. Unless the builder has shown that they are either unwilling to or incapable of finishing the job to the required standard, then you have to allow them to see the project through to the end in order to achieve that standard.

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

HEALTH AND SAFETY —

Breathe Easy – What you Need to Know about Respirators Hazardous airborne substances like dust and chemicals can be a significant risk on site.

They can cause cancer, organ damage and in worstcase scenarios, death. Often these substances can’t be seen with the naked eye but will cause ongoing long-term health problems. Masks, or respiratory protective equipment (RPE), are one way of preventing harm from these substances. The team at Site Safe have put together some tips on what you need to think about when investing in RPE. RPE, like other types of personal protective equipment, should be considered a last resort. Before using them, you should first try to eliminate or minimise the risk of exposure. Before deciding to use RPE, you must first do a risk assessment justifying its use. If using RPE, you’ll also need to remember to monitor the health of anyone who could be at risk to make sure it’s working effectively.

Before using RPE, think about: • • • •

Could I use a safer substance?

Enclosing the task to prevent it escaping into the air Modifying the process e.g. supress dust with water Extracting emissions/dust e.g. local exhaust ventilation (LEV). Providing workers with RPE is not a quick and easy fix – it can be costly to maintain and replace. Over time, engineering control measures such as local exhaust ventilation may be more cost-effective.

However, there will be times when you do need to use RPE. For example: • While you are arranging to install other control measures • For clearing up a spill • During temporary failure of a control measure e.g. sudden failure of LEV • For cleaning, e.g. low pressure washing of a dusty shed • For short, one-off procedures The three main types of respirators are: • Respirators that use filters to remove contaminants. These come in two main types: a particulate respirator which filters out dust and gas respirators which filter out gas and vapours.

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• Powered air purifying respirators (PAPRs) where contaminated air is forced by a powered fan through filters to provide purified air.

• Supplied air respirators that provide a supply of clean air from a source such as a cylinder or air compressor.

Selecting the right RPE can be confusing; you should get advice from occupational hygienists and suppliers of RPE to make sure you invest in the right protection.

What kind of RPE do I need?

The selection of RPE will usually require expert help. But as an example, general construction work, asbestos work, spraying, brushing/rolling and welding/fabrication working will all require different types or respirator.

General construction work might include cutting, sawing, sanding, drilling, sweeping etc. This type of work could create silica dust, wood dust and general nuisance dust.

A disposable respirator is usually suitable for most general construction tasks where exposures are low (less than 10 times the workplace exposure standard) and where it will only be used for short periods. Get an expert to help you determine your workplace exposure standards. But for general construction work where the work is more than 50 times the workplace exposure standard, then a full face reusable respirator and filter will be required. Disposable respirators are not suitable for asbestos, spraying, brushing/rolling or welding or fabrication work.

HEALTH AND SAFETY —

If you are selecting RPE, consider these three things: substance, operator and task.

Substance:

Operator:

Task:

What is the type, nature and toxicity of the contaminant.

Is it a mist, gas or solid? If the device doesn’t work correctly or fails, what is the worst that could happen? If there’s an accident, would it be a fire risk?

What control measures does the Safety Data Sheet (SDS) for the substance you are working with recommend? Are you choosing the right type of RPE and filter for the hazard?

Get the right size and face fit – and remember facial hair will affect the fit. It needs to be reasonably comfortable and compatible with other PPE that is being worn. You should arrange for fit testing, which can often be done by the supplier. This is also a good chance to train your workers in the correct way to wear and use RPE.

Is it for regular use, short or long duration, confined space, ventilation, light or heavy work? What is the access and location of air and does the wearer need clear vision? You’ll need to have a maintenance programme which includes cleaning, and checking for defects.

Remember to store RPE properly - it’s best to use an airtight container.

Need more help? Contact one of our expert health and safety advisors at www.sitesafe.org.nz to discuss your RPE needs. They’ll be more than happy to give you the advice you need to stay safe on site.

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.

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Uniquely engineered by MiTek, STUD-LOK complies with the fixing requirements in Section 8, NZS 3604:2011 and forms an integral part of the MiTek Truss and Frame design and layout.

STUD-LOK eliminates the need for builders to hammer straps on-site saving time and effort.

STUD-LOK

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miteknz.co.nz

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TECH TIPS —

Get Clever with the Cloud Having trouble getting your contacts onto your new device?

This Tech Tip was supplied by Noel Leeming Commercial. You’ll know us as NZ’s largest technology retailer but there’s so much more to Noel Leeming Commercial. We’re your one stop shop for your fitout - no matter the size or complexity. We work with residential and commercial builders, joiners, quantity surveyors, architects and designers to provide everything you need. Partnering with Noel Leeming means no surprises, great deals and your own Commercial Manager to make sure you get what you need - when you need it.

With most people owning three to five devices Three things to think of when choosing you need a simple and secure way to access cloud storage: the same data no matter which one you’re using. How much?

Cloud storage is the answer – it can help you securely save and access your important data, anytime from any connected device.

If you only want to store your contacts and small documents then the free storage allowance might be enough. To save photos, videos and other precious items you’ll want to pay for additional space.

How secure?

Most are pretty secure but if you have sensitive data (such as customer or financial info) you may want to choose an option that requires specific security steps to access it.

Which device or platform?

To access files on any device check out if the storage is specific to the device or platform or available everywhere.

Start with the key players – Google Drive, DropBox, Apple iCloud and Microsoft OneDrive.

Whatever you choose if you want some help getting your tech set up and running we’re here to help. Call Noel Leeming’s friendly Tech Solutions team on 0800 555 989 to find out more.

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where and when you need it

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IN THE KNOW —

Suspension of Six Aluminium Composite Panel (ACP) CodeMark Certificates Building Controls Update – Ministry of Business, Innovation and Employment Following a number of high profile fires involving combustible, polyethylene core aluminium composite panels (ACPs) used as external cladding, the use of the ACP has been the subject of a number of avenues of inquiry, both in New Zealand and internationally.

Under Section 271 of the Building Act 2004, MBIE has suspended the following CodeMark certificates:

New Zealand’s performance-based Building Code provides multiple lines of fire defence. A multi-storey building constructed in New Zealand would have active fire protection, passive fire protection, and an all-out evacuation plan.

• CMA-CM40075-I01-R01 – Apolic FR ACM Panel Cladding

• CMA-CM40035 – Alucobond Cladding

Systems

• CMA-CM40100 – Larson FR

Changes have been made to the NZ Building Code Acceptable Solutions for Protection from Fire to restrict the use of combustible cladding on buildings above three storeys.

MBIE commissioned an audit and peer review of CodeMark certificates attached to ACP products.

The audit was not intended to identify specific safety concerns with ACP cladding. It did identify that there was insufficient documentation to support evidence of compliance with the fire performance clauses of the New Zealand Building Code for which the below CodeMark certificates make claim.

• CMA-CM40094 – Symonite (Alubond) Cladding Systems • CMA-CM40111-I02-R03 – Symonite Cladding Systems (Reynobond FR) • CMA-CM40193-I01-R01 – Vitrabond FR Cladding System Manufacturers now have the opportunity to rectify issues identified with their CodeMark certificates. If these issues are not rectified, MBIE may revoke the CodeMark certificates.

This process has not unearthed evidence that these products are dangerous.

Building Consent Authorities (BCAs) can no longer rely upon these CodeMark certificates as evidence that the products comply with the requirements of the Building Code while they are in a state of suspension.

BCAs will be required to consider product use on a case-by-case basis when assessing a building consent, including those for which a building consent application has been received but not yet issued.

Any questions regarding the use of these CodeMark certificates can be sent to products@mbie.govt.nz Building owners with fire safety concerns about cladding should contact their local council, and tenants should contact their landlord.

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Working together, to share your vision What’s your vision? Windows and doors that arrive when you need them?

Everything fitting together perfectly? Maybe just knocking off early for a pie.

We understand, and that’s why we commit to working at your pace as part of your team to get the job done. Visit altuswindows.co.nz

ALT019/NZCB

Made exclusively by:

IN THE KNOW —

Show me the Money!

In the iconic scene from the 1996 movie, Jerry Maguire, Tom Cruise’s character was struggling to make his own mark in the sports agent business and was given an important lesson by his main client, played by Cuba Gooding Jnr. That lesson was, to stay in this business you have to SHOW ME THE MONEY! Work in progress not billed fast enough. Cash can be locked up here so ensure you bill customers as regularly as possible and ensure that ALL variations are billed as you go and at higher than usual profit rates.

Customers not paying you. This is the second most common stage of the cash cycle to block the flow of money into your bank account. Diligent and firm processes need to be put in place to ensure customers pay you on time. Look to outsource this function so you can keep the “good cop” role, but have an effective “bad cop” in the team.

Many of you at this time of year are probably receiving your annual accounts from your accountant. A common question is, “If I am making this much profit, where’s the cash?” In other words, “Show me the money, because it isn’t in my bank account”.

Growth is good, but it is easy to over-trade in the building industry and find yourself scratching for cash.

Businesses that run out of cash invariably go out of business, so it is a vital issue to understand and to address. It is particularly common for businesses in growth mode and with a buoyant construction market right now, this issue of “over-trading” is not uncommon.

I have listed a few factors below that can contribute to a potential cash crisis and included some suggestions on how to address them.

The above are just some ways you can improve your cash position in your business. They aren’t the only ones, so for a more customised plan for your business, drop me a line at andy@tradescoach. co.nz and we can review your situation in more detail.

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Too much cash drawn out by the owner. I know that new boat is tempting, but sucking the business dry of cash for your personal life could cause you pain further down the track. You need to remember that most of the cash in your bank account is not yours. It belongs to your suppliers, sub-trades and the IRD. Set a personal budget and stick to it.

Buying fixed assets with cash. Don’t be afraid to borrow money to buy productive fixed assets. If a piece of equipment is going to last you many years and help generate income during that time, you should fund the purchase over it’s productive life. Don’t use your precious cash for this and leave yourself short for meeting your short-term payment commitments.

Growing too fast. The faster a business grows the more cash it needs to fund the purchase of labour, materials and equipment. Growth is good, but it is easy to over-trade in the building industry and find yourself scratching for cash, even though profits are being made. Be a bit more conservative on your rate of growth, unless you have additional sources of cash to bridge the gap.

Low profit level. At the start of this article I talked about the situation where your P&L showed the business was profitable. This is good, but you need to establish if the business is generating ENOUGH profits to balance out the demand for cash, especially if you are growing. Profits are the long term carbohydrates that will fuel your business and so a target to grow your percentage of profits next year will pay dividends….literally.

TECH TIPS —

5 Ways Tech will Boost your Profitability

This Tech Tip was supplied by FREE UP. Call Anna Brooks on 021 0839 6910 to get the right job management app for your business.

Set-up and staff training available.

Visit www.freeup.kiwi

Did you know that easy-to-use technology on your mobile or tablet can help you reduce dreaded paperwork as well as increase your profitability?

A range of simple, low-cost apps are available which can ensure you always charge the right amount as well as increase overall efficiency all of which will boost your bottom line. Here are five ways tech improves profitability: 1. Charge correct margin: for example, for a 10% margin, tech will ensure you charge the permitted 11.11% mark-up – which could be worth thousands of dollars a year.

5. Save time: tech will ensure paperwork is reduced by automating manual processes as well as syncing with your accounting software, such as Xero or MYOB. More and more Builders across NZ are discovering the amazing difference these apps can make, freeing up time to focus on what’s important - whether it’s growing your business or enjoying a happier work life balance.

2. Quote accurately: setting up key items as a template, such as Preliminary and General Site costs, will ensure you never miss them again 3. Tackle timesheets: tech will ensure all your team’s hours are charged correctly as well as automating timesheet collection.

4. Track costs: tech will ensure you track your costs against the original quote so you can understand profitability in different parts of the job, and quickly see if costs are spiralling in a particular area.

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IN THE KNOW —

Keeping Records of Employment Discussions In past articles, we have written about an employer’s mandatory obligations to keep certain specified records as per the requirements of section 130 of the Employment Relations Act 2000 and section 81 of the Holidays Act 2003.

However, there are additional records that we recommend an employer keep, even though it is not mandatory to do so. It is common for an employer to elect to discuss lower level issues or concerns with employees on an informal basis, usually verbally. The issues or concerns may be about performance or conduct expectations. Sometimes there can be a number of discussions with an employee and these may occur over a lengthy period of time. If the employee does not modify his or her performance or conduct as a result of the issues or concerns, an employer will consider whether those need to be escalated into a more formal performance management process or a formal disciplinary process. Any prior discussions will be relevant and an important part of considering all of the circumstances when considering any potential disciplinary sanction.

When we are assisting employer clients with these formal processes, we regularly find that there has been no written record kept of the prior informal discussions and often the employer cannot recall specific dates or what specifically was said on each prior occasion when the issue or concern was discussed with the employee.

It then becomes difficult to properly refer to these prior discussions in the performance management process or a disciplinary process and leaves it open for the employee to challenge the employer’s recollection.

This is so that the employer has all information about the employee in one place and can provide a copy of the personal file if requested to do so. Keeping the personal file in an electronic format is acceptable, and provided there are appropriate security and backup systems, is likely to be a more secure and reliable means of record keeping compared with paper files kept in an office cabinet. Whether records are kept electronically or on paper, they should always be kept securely. We have dealt with many matters where personal files have, without authority, been accessed and interfered with or removed by employees due to insecure storage.

We therefore recommend that the employer keep a written record of any discussions with employees about issues or concerns at the time those discussions occur.

This could be in the form of a file note or an email to the employee summarising the discussion. The written record should be kept on the employee’s personal file.

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).

A personal file should contain all employment documentation pertaining to the employee, including the application for employment, tax code declaration, employment agreement, leave applications and approvals, performance appraisals and the like.

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TECH TIPS —

Quick Tips to Help Your CV Standout From the Crowd Looking for a new job?

This Tech Tip was supplied by TANZ eCampus, a flexible online tertiary learning service that works with your lifestyle to help you achieve your study and career goals. TANZ eCampus offers industry recognised, NZQA accredited, and internationally accepted courses in Project Management, Team Leadership, First Line Management, Business, and much more. www.tanzecampus.com Email: enquires@tanzecampus.com Phone: 0800 328 269

Putting together your CV can be challenging.

Here are some quick tips to help you stand out from the crowd.

1. Keep it short.

A CV is not your life story. Aim for no more than two pages. If an employer is interested in what you have to offer they will use your interview as a time to explore your history further.

2. Customise your CV. Make sure your CV highlights what your potential new employer is looking for. Avoid the temptation to send out the same CV far and wide.

3. Spell check!

This might seem basic, but you would be surprised

by how many errors slip into cover letters and CVs. It is always a good idea to ask someone to do a read through.

4. Assess yourself.

If you have taken some time off work or have gaps in your CV – contemplate a short course or certificate to help improve your experience, skills, and knowledge.

Ensuring you are keeping up-to-date with the latest developments in your chosen profession will demonstrate you are keen to learn and at the forefront of your industry.

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CERTIFIED PLANS —

Two Certified Plans Merged to Create One Deon Neville of D Build, Waiuku, recently brought the Matai and Kauri designs together to create one spectacular home for his clients Carl and Janine Marriner. n The result was a design that would suit their building site perfectly and fit with e w their day to day style of living.s 23 150

engineer designed portal frame

Approaching ACD Architecture with a ’cut-and-paste‘ version of the Matai and Kauri scheme plans combined, Deon found they had a good understanding of what he and his clients wished to achieve. After exchanging several emails, and with all changes confirmed, Deon’s clients’ dream-list was met.

450sq Village Stone Schist clad columns

Alfresco

Casual raking ceiling

2 200x900

Media

Kitchen 6 190 x 1 920

Bed 4

Scullery

3 890 x 3 750

1 300x600

Bed 2

760 810

3 150 x 3 000

800x3 000

760

Bath

810

WC

2 900 x 3 000

Bed 3 3 200 x 3 640

Eng Ridge Beam

810

Laun.

4 460 x 1 820

ENG lintel

sl. doors

2 650 x 2 380

760

raking ceiling

WH

WiW

2 200x900

Ensuite 2 120 x 3 670

810

810

810

Entry 5 160 x 1 200

810

760

sl. doors

1 300x600

760

810 c/sl

600x1 800

line of bulkhead - 2570 ceiling ht

810 c/sl.

D/W

600x1 800

ENG Lintel

6 190 x 2 200

1200 c/sl

extent of raking ceiling

extent of raking ceiling (eng beam TBC)

2 200x500

Dining Bed 1

Living 5 000 x 4 800

2 200x3 600 dbl/slider

5 000 x 3 110

4 630 x 4 000

outdoor kitchen

Family 5 000 x 4 800

Eng Ridge Beam

2 200x1 800

2 200x500

1 800 1 300x2 000

2 200x2 700 st/slider

2 200x2 700 st/slider

raking soffit (T & G sarking)

2 200x2 700

2 200x2 700 st/slider

23 830

At the time it was a little nerve-racking for Deon’s clients.

But once the frames were in place, they were relieved to see the size of each room and how it all worked together.

Throughout the build, the only additional change was to increase the size of the scullery. The process, beyond planning through to council, flowed smoothly, and the build was then underway.

3 280

Elevation Guide

1 300x1 800

raking soffit (T & G sarking)

2 200x900

1 300x600

1 300x1 800

engineer designed portal frame

1 300x2 400

2 100h x 2 400w

450sq Village Stone Schist clad columns

Six months later, after the move-in date, both Carl and Janine are loving how their home has come together.

Congratulations, Deon, for an awesome build!

Triple Garage

1 300x1 800

2 100h x 2 400w

6 150 x 9 890

2 200x900

2 200x900

All plans & building work is subject to council approval. All dimensions & underground service locations to be checked prior to commencement of all works or ordering of materials. DO NOT scale off drawings. Cross reference all drawings, confirm site levels, floor heights & restrictions prior to earthworks. If any discrepancies occur, ask the designer or contractor immediately before commencing works or ordering.

Client Name:

Carl & Janine Marriner Site Address:

27 Towers Road, Waiuku

All documents are copyright to ACD Architecture Ltd

GENERAL: Year 4 Membership Fees to Certified Plans

WELCOME TO OUR LATEST CERTIFIED PLAN MEMBERS

For those members that have fulfilled their three-year membership commitment to Certified Plans and are keen to continue as a member for the fourth and ongoing years, the annual membership fee has been reviewed at $300+gst. For those members who have continued with their membership, we thank you for your support of an ever-evolving initiative.

Ryan Neutze R N Building Geraldine

Daniel Fogarty Fogarty Construction Gisborne

Max Broadhurst Broadhurst Builders Limited The Pines Beach

Caleb Ngatai Soul Trade Builders Limited Wellington

39

Plan:

New Desig

Date:

01 08 1

TRADE

HUB

NZCB NEWS —

From the Chief Executive The industry continues to hum along with many of our members still reporting full order books until the end of 2019. There has been some comment on softening in demand and this has been evident in some northern areas of the country, but I am still very positive on the continuing future demand especially in housing, both new and alterations..

It was great to get our Regional Presidents together again recently in zone meetings across the country.

There was great feedback and discussion on a wide range of issues – they are a forum I really enjoy.

The various discussions we are having on KiwiBuild are continuing. As we are all aware this is an evolving topic and we will advise you further as details become clearer.

We have concluded the negotiations with the Halo underwriting syndicate at Lloyd’s of London (as mentioned in the last InHouse) and this has seen a lift in the premiums of about 10% from the 1st August. It is now coming up to over 2 years since we negotiated the terms of Halo, and this is an adjustment which reflects the scheme, some claim history and also the lift in global underwriting costs. The impact on the average premium will be $150, which is manageable. We have features and benefits in Halo (to both the Homeowners and as importantly to our members) that most other schemes globally of this type don’t have so we continue to be in a strong position. We are discussing the value and features of Halo with the Banks for their mortgage lending (including that it is independent and has a strong backer) and will report further on this as these discussions continue.

41

Grant Florence Chief Executive

The various discussions we are having on KiwiBuild are continuing. As we are all aware this is an evolving topic and we will advise you further as details become clearer.

The downfall of Ebert Construction has been high in the media, with many commentators (including other building trade associations) blaming the structure of the building industry for the firm’s demise. I have real sympathy for the range of sub-contractors and suppliers who will no doubt be caught up in the situation and facing some financial loss. And by the way, it will be interesting to see if the recent retentions regulation changes (ie holding funds “on trust”) will have an impact on this situation and may provide some glimmer of hope for sub contractors.

However to blame the industry structure for the failure is, I think “a bit rich”. Whilst we all know the industry structure (liability, risk, margins, productivity etc) could be better, it was not the industry structure that forced the managers at Ebert Construction to sign the contracts and agree any terms that were tough or impossible to meet. That was a clear management decision. As business owners we all have the ability to ‘walk away’ from negotiating all sorts of contracts at any time.

We have completed the soft launch of our external homeowner facing digital and social media promotion strategy. More information will be provided on this over the next few weeks, but to date the pickup has been very encouraging.

Till next time…

AQ-220917-CMNZ

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