NZCB InHouse Magazine August September 2019

The official magazine of New Zealand Certified Builders Association

New Triangular Employment Legislation Pg 14

Kiwi Charities Receive Bench Seats Pg 20

Donâ&#x20AC;&#x2122;t Get Caught Out by IRD Interest Rise Pg 28

August/September 2019

Contents FROM NZCB Message from the Board New Board Member Message from the Chief Executive Message from the Group Technical Manager Halo Period of Cover and Variations Understanding Tools of Trade Insurance & Excesses Revere – Submissions Open Now! NZCB National Partners

HEALTH AND SAFETY

2 3 4 6 8

Now You See Me

OUR PEOPLE

9 10 41

Recognising Our Members!

Don’t Get Caught Out by IRD Interest Rise

The Right Choice

16 17 18

AROUND THE REGIONS

20 34 35

Tauranga Districts Daffodil Day Challenge Shane Ririnui – North Island Nick Matthews – South Island Industry Events Calendar

30 30 31 32

NEWS BITES

IN THE MEDIA Find NZCB on

NZCB Apprentice Challenge benefits The Cancer Society

CERTIFIED PLANS

12 14

NEXT GENERATION Kiwi Charities Receive Bench Seats, Thanks to NZCB Apprentice Challenge ITAB Apprenticeship Completions AST Trust Update

TECH TIPS

IN THE KNOW How to Get Out of a Building Contract You Don’t Want to Be In New Triangular Employment Legislation Builders Are Choosing to Build to Higher Quality Standards What’s Your Purple Cow? Laminex® New Zealand Technical Update

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

InHouse is the official bi-monthly magazine of New Zealand Certified Builders Association. We’re always on the lookout for interesting stories or build projects that NZCB members have been a part of! To share your story with us please contact Linda. Alternatively, if you are interested in advertising in the InHouse magazine, we have a range of opportunities available to suit every budget. Linda Moody INHOUSE EDITOR linda@nzcb.nz | 07 557 9214

FROM NZCB

Mike Dobbs NZCB Board Member

Record Numbers, Fascinating Workshops and Strong Connections I’ve attended the New Zealand Certified Builders (NZCB) Annual General Meeting (AGM), Conference and Expo for 15 years in a row and it’s fantastic to see the events continue to engage, inform and inspire the building industry. The 2019 event held in Christchurch in June was no exception with a record number of attendees – just under 800! For the second year running we invited the Association of Wall & Ceiling Industries NZ (AWCI) along. We also had the pleasure of hosting Registered Master Builders president Darrell Trigg, who I’ve known for many years having been a local Whangarei lad. He told me at Conference how impressed he was with the scale and quality of the event and acknowledged the great work we are doing for our membership. This was good feedback and indicates the wonderful work Karla and the team are doing to ensure our conferences hit the mark each year. One of my favourite aspects of Conference is the NZCB Apprentice Challenge presentations, where entrants are given a topic to research and speak on for three minutes. Public speaking is something most of us fear, so it was impressive to see the young apprentices stand up in front of the large crowd and speak with confidence. There’s no doubt they will go on to become fantastic tradesmen and women, representing our industry in the best way possible. Well done to everyone who participated, especially winners Cedric Folaumoetu’i, Peter Fox and Regan Morris. In the lead up to Conference, I was speaking to a few local members about the Saturday educational workshops. Some were worried it would be ‘same old same old’ but after we all attended the various workshops, we agreed the content was fantastic! The workshops were interesting and applicable to our everyday business workings. It’s a real challenge for the team at National Support Office to keep the workshops engaging and appropriate for our members each year, so they’re doing a fantastic job. Conference is a brilliant opportunity to catch up with like-minded, passionate builders who are striving to be the best in their craft. I encourage anyone who hasn’t attended a Conference to look at going next year. The wealth of knowledge and advice on offer will put you in good stead for developing your business. I guarantee you’ll learn something new!

In other news, with the recent “changing of the guard” on the NZCB Board (with Ian Chamberlain replacing Brent Chatterton and Reneé Jayne stepping down as an Independent Director), I’d like to acknowledge their commitment and hard work. Brent held the challenging role of Chairperson for two years, which saw him take a lot of time out of his business for the good of the Association and he did a fine job in steering the ship. Reneé’s skill set grew and grew over the time she was with us and she helped launch some valuable services, including the digital strategy. I wish both Brent and Reneé well for the future. Welcome back to the NZCB Board Dave Whitehead and Additional Director/Chairperson Kevin Sceats, who have been re-elected. Mike Craig and I have one more year to serve under our term. I’m looking forward to another busy year on the NZCB Board, which will see the next NZCB AGM, Conference and Expo in Wellington come around all too fast no doubt!

FROM NZCB

NZCB Welcomes New Board Member Ian is a qualified joiner and carpenter with more than 35 years’ experience in both the United Kingdom and New Zealand building industries, including 29 years management and client service experience. He emigrated to New Zealand in the early 2000’s and set up Chamberlain Carpentry & Joinery in Taupo in 2004. Chamberlain Carpentry and Joinery was one of the original companies to support the Certified Plans scheme and built the first Certified Plans house in Taupo, in 2015. They have also built several energy efficient homes and specialise in mid- to high-end house builds and renovations, plus custom-made furniture.

At this year’s New Zealand Certified Builders (NZCB) Annual General Meeting (AGM), held prior to the Conference and Expo in Christchurch, it was announced that Ian Chamberlain was elected onto the NZCB Association Board during the 2019 elections. Ian replaces Brent Chatterton, who stood down after seven years on the Board. For those of you who have not yet met or know Ian, below may help you get to know him. Welcome Ian!

Ian’s professional interests include improving skills and knowledge across the industry and educating people within and outside it about ways of creating better outcomes for everyone. To this end, he is also involved with the Building Officials Institute of New Zealand (BOINZ) and brings a ‘construction industry viewpoint’ to their debates. Ian enjoys helping give youth a direction and is on the boards of both Lake Taupo Rotary and Taupo Pathways. The latter group facilitates programmes that advance education, training and employment for young people and allows an overlap of his building training and youth training interests. Ian has been happily married to Gillian for 19 years and they have three children. Rock climbing, kayaking and tramping are his preferred activities when time allows.

Ian Chamberlain of Chamberlain Carpentry & Joinery joined the NZCB Board in June this year, having been an NZCB member for 14 years. Ian became the NZCB Taupo President from 2010–2014, then served as its Vice President from 2017–2019.

SAVE THE DATE! NZCB 22ND ANNUAL AGM CONFERENCE AND EXPO

4–6 June 2020 TSB Arena and Shed 6 Queens Wharf, Wellington

FROM NZCB

Grant Florence Chief Executive

Review of Vocation Education (RoVE) The outcome of the Review of Vocational Education (RoVE) was announced by the Minister of Education in early August. For our sector, this review was centred on how apprentices may be trained in the future. The Minister’s decision was basically in line with the initial proposals that the Minister sought consultation and feedback on. This announcement included the future consolidation of the 16 Polytechnics around New Zealand into one entity (NZ Institute of Skills and Technology) and the disbandment of the Industry Training Organisations (ITO’s). The formation of industry-based Workforce Development Councils, Centres of Excellence and Regional Leadership Groups – each with its own set of functions and responsibilities. This is a major change to the structure and delivery of vocational education in New Zealand. The implementation of these changes is forecast to take some time and completion of all the structural changes may not be until 2023. In the meantime, the Minister has emphasised that for apprentices currently in training and those who may be considering an apprenticeship there are no changes and they can confidently continue (or start) their training and be assured that these changes will not impact on their apprenticeship and qualification.

Halo continues to be the pre-eminent homeowner’s guarantee in New Zealand and has a number of unique features including its independent management; internationally rated underwriter; 10 year cover for both structural and non-structural defects and automatic transferability should a homeowner sell their property within 10 years. The sleep easy cover remains. So, NZCB members should remain confident in using Halo in the future. If members have any queries on this change, please do not hesitate to contact the National Support Office and speak to either Jason McClintock or Grant Florence.

Building Systems Legislative Reform Programme Summaries of the industry submissions on the Building System Legislation Reforms package have been published by MBIE and can be found on their website: www.mbie.govt.nz/have-your-say/building-systemlegislative-reform-programme-public-consultation/

Halo 10 Year Residential Guarantee Insurance As previously advised to all members, regrettably there has been a slight change to the cover terms of Halo. The change relates to the cover available to homeowners during the time from when they pay a deposit to the completion of the project (pre-completion cover). There are five scenarios where a homeowner is covered by Halo over the construction period. One of these scenarios has been deleted – which relates to non-completion of the project due to the insolvency or fraudulent actions of the head building contractor. The other four scenarios remain, such as cover to the homeowner if the builder dies or disappears, refuses to complete the contract, or cancels the contract, etc. The change is to all Halo policies issued by BrokerWeb Risk Services from 1 August 2019. Halo policies issued prior to that date are not affected. The changes are a result of a number of factors including the changing and reducing of risk profiles of insurers globally. This has included the particular syndicate at Lloyd’s of London who underwrite the Halo insurance scheme. New Zealand Certified Builders (NZCB) executives, together with the Halo scheme manager and broker, BrokerWeb Risk Services, spent a considerable amount of time over the last week of July (leading up to the change) negotiating with the underwriters to retain the cover but were unsuccessful at this point.

USA International Home Builders Show At the suggestion of our members, we have arranged a trip to the USA in January 2020 to attend the International Home Builders Show and to also visit some premier home builders in Las Vegas and Los Angeles. Departure is on 21 January 2020 for a 10-day duration, however options to extend these dates are available. If you have not seen the flyer, contact Alicia Karena at the National Support Office. We are looking to assess interest in joining the trip at the end of August 2019.

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FROM NZCB

Jason McClintock Group Technical Manager

Challenging ‘Industry Standard’ Lately I’ve been feeding conversation on our Facebook page and it’s been interesting to sit back and watch who’s sitting in which camp when it comes to ‘industry standard’. One of the online conversations challenged industry standard when invoicing a head contractor [or client] when the build team work through tea breaks. It quickly became clear there were two differing opinions, which raised a more important issue – there is no industry standard (but each camp was keen to claim the title!). This got me thinking about how aspects of building that are considered industry standard can now easily be challenged. Each time New Zealand Certified Builders (NZCB) updates its building contracts, we’re having to clarify things in the fine print. For example, asking ourselves ‘what is considered a reasonable tea break and who should be paying for these?’ As homeowners challenge the detail, NZCB finds itself in a tricky position because our industry hasn’t taken

the time to write a ‘handbook’ on this stuff. Without one, we’re unable to satisfy the inquisitive homeowner who is now looking to write their own version. On the flipside, we find ourselves drifting from industry’s interpretation of the world and seeking legal guidance. This is unfortunate because it takes power away from our industry and the ability to drive best practice and allows legal interpretation to start setting a precedence. Builders will one day need a law degree to operate in an increasingly complex build environment.

My take home tip: don’t be surprised if your clients start questioning the norm. It’s the information-rich world we live in and ‘my entitlement to know’ is fast becoming the new norm.

FROM NZCB

Halo Period of Cover and Variations HALO PERIOD OF COVER

VARIATIONS

Initial documentation for the Halo Guarantee will be noted as beginning from either the date the contract was signed or the date the building work commenced, whichever is the earlier.

Scenario You have signed a contract with your client and a Halo policy has been issued. The owner then decides they would like to add to the scope of works which will increase the contract value. You draw up a variation to your contract which outlines the change in the scope of works and the payment structure.

The cover then runs through from that date until 10 years after the estimated completion date. This is adjusted when the Halo Certificate of Practical Completion (CPC) is received and processed.

How does Halo respond to the variation? You should contact the Halo team as soon as possible and advise them there has been an increase in the contract value. (This should be done in any instance where the increase is more than 10% of the original contract price to ensure your client is not left underinsured.) You will be requested to send through a copy of the variation for the policy file and the policy will be endorsed accordingly to increase the contract value to allow for this variation. This may result in an additional premium being charged and, as above, the increased value will not be effective until the premium has been received by BWRS. At that stage the increased cover will be backdated to the date you advised of the increase.

I M P O R TA N T

No Premium = No Cover This means that until such time as the premium has been received by BrokerWeb Risk Services Limited (BWRS) there is no cover in place. However, once the premium has been received cover will be backdated as outlined above.

What if Halo are not advised of the increased contract value? If no notice is given to Halo then cover will remain at the original contract price that the policy was issued for. In the event of a claim, any payments or settlement offers will be based on that contract price, meaning that your client may be inadequately covered should a claim occur during the construction period.

Check out the membersâ&#x20AC;&#x2122; ToolShed for the latest documentation â&#x20AC;&#x201C; application, cpc, premium and excess chart.

Please quote your policy number on any communication or documentation sent through to the Halo team.

Your Halo guarantee is administered by BrokerWeb Risk Services Limited. For any queries contact the Halo team at BrokerWeb Risk Services on 0800 644 444.

FROM NZCB

Understanding Tools of Trade Insurance & Excesses Many of you would have fallen victim to having your tools stolen either from site, your trailer or vehicle. Insuring tools of trade is not a huge cost when you get the right advice and structure the sum that you insure for correctly.

The excess for theft is usually $2,500 – Theft is when there is no violent or forcible entry to or exit from a vehicle, building or container. For example, if your tools are onsite and unattended or left in an unlocked vehicle and they are taken this is theft.

REDi Insurance offers cover for portable and static tools, many members that we act for had previously been insuring all tools as portable assets. This is not usually necessary and can mean that you are paying a higher premium than you need too. If you have $50,000 worth but only have $15,000 away from your fixed premises (home or depot) at any one time, then the policy needs to be structured to reflect this situation. Premiums for static assets are much less than portable.

The excess for burglary is usually $1,000 – Burglary is where evidence of a break-in to a vehicle, building or container is present. Just as important is having a full replacement policy, not all insurance companies offer full replacement. REDi Insurance covers tools for their full replacement value and laptops, tablets and mobile phones are replacement up to two-years-old. Some policies on the market exclude Theft altogether. Therefore, this is a good reminder to check your policy. If you would like us to check your current policy or would like further advice about any insurance matters, please get in touch for a fee review.

Understanding how the excess differs between Theft and Burglary claims and taking extra precautions to protect your tools is paramount.

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

FROM NZCB

Submissions Open Now!

Built by Craig

Cogan Build er Limi

ted

Luxury lif on the caneal

Revere, Volumes One and Two were such a massive success we are now going for a “Third” edition!

Again, over 10,000 copies of this publication will be circulated nationwide to our members, Air New Zealand Koru lounges, architects, lawyers, various media outlets and other offices of influence. It will also be published online and included with various other magazines our target audience the home owner, will have access to and read.

| Northland

“In summer we the whole fro open up nt house – all the of the sliders – and ranch barbecue out there. It is glorious.”

NZCB Member

⁄

Craig Cogan www.craigcoganbu ilder.co.nz

New Zealand Certified Builders Association National Support Office 10 Marsh Street Tauranga New Zealand

For further information contact nzcb.nz

VOLUME TWO 2019

Revere is a magazine to be proud of as well as a wonderful sales tool for all members alike. The calibre of submissions is high and ideally, we would like to feature builds and renovations that have been completed in the last two years.

Marsden Cov e

Watching the sun birds Craig and rise over the canal, early Sue Roulston with their new are retirement sanct delighted Marsden Cove uary at . With a priva te jetty on calm waters leading to the Whan Harbour, it is simply the perfe garei for their brand ct setting -new home. The north-east facing, two-s torey deluxe featur es required super property’s and seamless b communication teamwork successful end to ensure a result . “There was an and glass and incredible amount of steel a lot of work in the build,” says Craig Cogan of Craig Coga n Builders, who has constructed seven other prope the Northland rties in development. “Cantilevered decks off the front, plus louvre off the decks , down the side, screens and over the entrance, requir ed a lot of thoug construction to bring it all togethht and careful er.” Keeping to a ‘luxuri ous and low-m brief, the home aintenance’ owners, Craig and Sue, went with Trespa® Meteon® for the exterior, a impact cladd high ing seldom used residential builds in New Zeala nd . Electron Beam With panels cured using an Curing (EBC) technology, they are resistant to weather and light and give strong, highly a stable Craig and Sue but decorative panel. agree that an abund of insulation, ance double glazin g, and the layout of the interio r, all helped to create a super sustainable home bly . “In winter, the atrium over the allows the heat dining area from upward and warm downstairs to flow the whole house In summer we open up the whole . the house – all the ranch slider front of barbecue out s there. It is glorio – and us.”

Julie Thomas: P: 07 927 7720 ext 707 or E: julie@nzcb.nz ISSN 2624-14 47

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IN THE KNOW —

How to Get Out of a Building Contract You Don’t Want to Be In There are plenty of situations where a builder might want to cancel a building contract. You might have suffered a personal tragedy or a serious health setback, or you might have unexpectedly lost one or more senior staff members, or you might have overcommitted yourself and taken on more projects than you can handle. Alternatively, you might have discovered that your clients are impossible to work with, either because they are distrusting micro-managers who are constantly interfering and finding fault with your work, or because they are determined to fleece you by always delaying payment or short-paying your invoices, and manufacturing excuses to justify it. Finally, you might have simply got a better offer, and regretted your earlier decision. In any of those situations, can you just bail out? The short answer is, no. Under a building contract you are not only entitled to see the project through to the end, you are obliged to see the project through to the end. So, just as the owners can’t have second thoughts, neither can you.

What would happen if you just do it anyway? The starting point is that if you pull out of a building contract before completion, you will have breached your obligation to see it through to the end. The owners could then sue your company for their losses, or get an order forcing you to continue, and you would be on very weak ground in trying to defend yourself. However, you still might contemplate doing it regardless. The losses the owners would suffer are only the additional cost they would incur as a result of having to change builders. In charge-up contracts, that might only be the cost of the delay – assuming the building materials and subcontractors haven’t gone up in price, and the new builder’s hourly rates are the same as yours. So, sometimes paying damages and legal fees is the lesser of two evils. And, if you genuinely believe that you are in the right, you might even gamble that they won’t bother suing you in the first place. However, that is not a decision you ought to take lightly. It is far safer to try to find some way to cancel the building contract instead. There are circumstances where the building contract can be cancelled, and those circumstances are summarised below, using the New Zealand Certified Builders (NZCB) contracts as the reference point. However you need to be very sure of your ground, because if you get it wrong, you are in breach yourself, so it could backfire on you.

In all building contracts there are certain standard situations where you can cancel. For example, where the owners have gone bust. Or, where they are seriously in default. In NZCB contracts “seriously in default” can mean one of three things: 1. The owners might make it clear they don’t intend to complete the performance of their obligations. 2. You might have been induced to enter into the contract by a representation the owners made to you that turned out to be false. In that case it must have been agreed (expressly or impliedly) that the truth of the representation was essential to you, or the effect of the false representation must be that the project is substantially worse for you than you expected. 3. The owners might have breached a term in the contract, or it might be patently obvious that they will do so. In that case, performance of the term must have been agreed (expressly or impliedly) as being essential to you, or the effect of non-performance must be that the project is substantially worse for you than you expected. Under the NZCB contracts you can also terminate if the owners have abandoned the project or they are incapable of performing (permanently and without a doubt). Or if the contract has been “frustrated” – which means impossible to perform any longer.

What happens if you terminate? There is a process that you have to follow to cancel. The builder gets paid up to date, he hands over possession, and clears the site. Parts of the contract such as the dispute-resolution provisions, the warranties and guarantees, etc. continue in force. But the main consequence is that the builder is free to go and the owners are free to hire another builder.

If the termination was caused by the owners’ default, then the builder can recover his losses from the owners if he chooses to do so. Of course, it is not always so clear-cut. There may not be any insolvency, intention not to complete, misrepresentation, serious breach, abandonment, incapacity, or frustration. The owners may be in default, but not seriously enough to justify you cancelling the contract. In that case, all is not lost. If the owners fail to pay promptly or interfere with progress, under the NZCB contracts you can suspend work. There is a process you have to follow to do this, so check the contract, and if in doubt use the free legal helpline. The important point is that if the suspension continues for 40 working days (because the owners have not remedied their default), you can then cancel the contract.

guarantee, or a second mortgage over the land, or a security interest over the owners’ non-land assets. If it isn’t provided within 10 working days, under the NZCB contracts you can then suspend work after giving written notice. Once again, follow the process outlined in the contract, and if in doubt use the free legal helpline. If none of the above situations applies, but something is preventing you from working, you may be able to rely on the “force majeure” clause in the NZCB contracts. Force majeure is also known as “Act of God” and it means a cause or event beyond your reasonable control that prevents you from complying with your obligations. Think earthquakes, subsidence, floods, war, riots, industrial action, states of emergency, or unforeseeable shortages of labour, materials, or transport. If those prevent you from getting on with the project, then you’re not liable for failing to do so. It’s not a permanent leave-pass, however - you must try to resume work as soon as possible. But if, despite your efforts, the force majeure continues for 5 working days, you can suspend work, and ultimately cancel after 40 working days if it continues to stop you in your tracks.

You are obliged to see the project through to the end. So, just as the owners can’t have second thoughts, neither can you.

If all else fails, you may be able to persuade the owners to let you go. If you have had a personal crisis, overcommitted yourself, or lost valuable staff, they may sympathise with you or at least recognise that it’s not in their interests to persevere with you. Alternatively, if your relationship with the owners has completely deteriorated then they may be just as happy to be rid of you as you would be of being rid of them. You will have a better chance of negotiating a mutual cancellation if you write off some of the money owing to you, and/or line up another suitable builder to take over from you.

What do you do if there is no default at all, but simply a hint that one might happen soon? If you have reasonable grounds for concern about the owners’ ability to pay future instalments, you can request additional security for payment. That can be for any amount now owing and any amount likely to become owing in the future. You can ask for the next instalment to be paid in advance, or a personal

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.

IN THE KNOW —

New Triangular Employment Legislation There is more new employment legislation on the horizon. The Employment Relations (Triangular Employment) Amendment Act 2019 was given its third reading last month and was given the Royal assent on 27 June 2019. This Act amends the Employment Relations Act 2000 and the amendments will come into effect on 27 June 2020 or earlier if the Governor-General makes an Order in Council. The amendments are likely to impact on various triangular employment relationships. For example:

The amendments revolve around the concept of a “controlling third party” and this term is defined as a person: • Who has a contract or other arrangement with an employer under which an employee performs work for the benefit of the person; and • Who exercises, or is entitled to exercise, control or direction over the employee that is similar or substantially similar to the control or direction that an employer exercises, or is entitled to exercise, in relation to the employee. Employees will now be able to include any controlling third party in personal grievance claims if they consider the controlling third party caused or contributed to the personal grievance. Employers who have received notice of a personal grievance from an employee can also notify a controlling third party if they consider that the actions of the controlling third party caused or contributed to the personal grievance. A controlling third party may also be joined to an Employment Relations Authority proceeding and have remedies awarded against it. The amendments appear to be based on a 2017 Employment Court case where it was held that employees, employed by a labour hire company to carry out work at a company which provided in-flight airline catering, were employees of the catering company. This finding was made based on the definition of employee in the Employment Relations Act which is focussed on “the real nature of the relationship” between parties, including how it operated in practice. The Employment Court stated “The traditional binary notion of employment, is increasingly being challenged by innovative ways of working and structuring relationships. It goes without saying that increasingly complex models give rise to increasing degrees of murkiness as to who, if anyone, bears what responsibility for working conditions”.

• An office support or service company (to a principal company) is the named employer but the employee has nothing to do with the office support or service company or its personnel on a day to day basis, instead carrying out duties and working for the principal company. The principal company would be likely to be a controlling third party; • A temp placement or labour hire agency is the named employer and who then places the employee into another business that requires the temp or labour hire services. The employee will be managed and controlled on a day to day basis by the business for whom he or she is working so that business would be likely to be a controlling third party; • A company subcontracting to another company (the principal company) has a number of its employees working exclusively at the principal company’s premises and reporting to and under the control of a manager at the principal company. While the subcontractor pays the wages and is the named employer, the principal company would be likely to be a controlling third party.

Danny Jacobson and Trudy Marshall are Partners at Employment Lawyers Tauranga and they specialise exclusively in employment law. They operate our Employment Helpline for NZCB members: phone 07 928 0529. (The above is by its nature general, and is not intended to be a substitute for legal advice.)

IN THE KNOW —

Builders Are Choosing to Build to Higher Quality Standards Are you one of the many in the building industry concerned about the shortcomings of our internationally-criticised Building Code?

Renders of a 6 home Papakainga being built by Homeco for Te Ngāi Tūāhuriri Rūnanga with support from Te Puni Kōkiri - Ministry of Māori Development. The homes are currently under construction and targeting an 8 Homestar rating. Source: Homeco/Solarchitect.

Currently, homes built only to code are vulnerable to many things including heat-loss, lack of provision for heating and ventilation, overheating and excess waste. To combat these shortcomings, numerous large developers, and builders like you, have been choosing to build to Homestar standards – Panuku Development Auckland, HLC, Legacy Property, Bupa, MetlifeCare, Oceania and Christchurch City Counciland Homeco are just a few. And when ANZ launched its Healthy Home Loan package on 12 April this year, it sent our phone and emails buzzing as developers, home builders and homeowners rushed to take advantage of the lower interest rate on offer if certified to 6 Homestar. Homestar is run by us, a team of passionate people at the not-for-profit New Zealand Green Building Council. It is performance-based and utilises a technical manual, checklists and scorecards to determine the rating points score for a dwelling. We created Homestar in close collaboration with the industry to ensure there was a clear, comprehensive, measurable and consistent way to rate the design and build of homes in Aotearoa. Homestar assesses a house, apartment or multi-unit development against several classifications including energy, health, comfort and water. And, as construction and demolition waste makes up half of New Zealand’s total waste going to landfill, Homestar rewards the reduction of construction waste, too.

in substandard homes – and expect better – the demand for building above code is likely to rise dramatically. 6 Homestar homes will be warmer, drier and healthier for your clients, and will also cost less to run than a typical new house built to the Building Code. And they’re marketable as better quality homes too. The payback speaks for itself. We have calculated that it costs only about 1.5% more to build a three-bedroom house meeting the 6 Homestar rating compared to a similar house built to code, but about $500 less a year to run. ANZ predicts the Healthy Home Loan Package on the average home will save a customer another $1000 a year or so in interest costs. So, ANZ is helping even more Kiwi families move into 6 Homestar homes. It’s ANZ’s way of helping deal with some of the short-term costs so Kiwis can enjoy the long-term benefits. ANZ recognises that our housing market will gradually catch up with international standards, but they don’t want to wait for that – they want to create better homes now. And so do we. Because all New Zealanders deserve warm, dry healthy homes. For further information, add NZGBC contact – info@nzgbc.org.nz For more info on the ANZ Healthy Home loan package – https://www.anz.co.nz/personal/home-loansmortgages/loan-types/healthy-homes/ Joanne Duggan, New Zealand Building Council. The New Zealand Green Building Council is a not-for-profit team of people who are passionate advocates for better buildings, because we know that better buildings mean healthier, happier Kiwis.

As news coverage grows and Kiwis are becoming increasingly aware of the health implications of living

IN THE KNOW —

What’s Your Purple Cow? In the dog-eat-dog world of service marketing, why should a prospective client go with you rather than the other builders quoting for the job? You’re a quality builder perhaps? Forget it. Doing a quality job is entry fee to the race, it’s not a differentiator anymore. You need something else to clearly differentiate your business from the others – what the US marketing guru, Seth Godin, calls your ‘Purple Cow’. reason for that prospect to buy from you instead of your competition? It could be a slightly unique way that you deliver your service to the client that addresses their key concerns or desires in the outcome of the building project. Your Signature System in effect. Warning – it’s no good having a fantastic point of difference that NOBODY cares about or is prepared to pay a premium for. Your customers’ interest is focused on what your product or service does for them – the benefits – how using your service solves a problem or achieves a dream, in a particularly unique way. The key to unlocking the decision to buy is offering benefits that outweigh what the competition offers. Your Purple Cow is also known as your signature system, your unique selling proposition, or USP. It is a sentence or phrase that explains what makes you special. It gives your prospects a reason to do business with you rather than your competitors. A good USP that is properly used makes your marketing a lot more effective, because it gives you dominance over a market niche. “But I do basically the same as most of my competitors do. How can I be different?” This is a question I often hear from clients as they start out on re-engineering their marketing strategy. It’s a fair question as most of my clients are service-based businesses. They primarily sell their services to clients as a builder, plumber, electrician or whatever. Sure they use products in how they deliver their service, but they are not a product-based business like a retailer or manufacturer. It is harder to differentiate a service-based business, as you don’t have something tangible to demonstrate or customise for a client. The up-side of the difficulty in developing a Purple Cow for a service business is that not every one does it, so when you can define a relatively small difference, you naturally stand out more. So, how do you do this? When developing your USP, it is important that you put yourself in your prospects’ position. Look at your product or service from the point of view of someone thinking about buying it. What is important to your potential customer and what would be a compelling

So, benefits are all about how your service adds value for your customer, while features relate to what goes into making the product or service and how it is delivered to customers. This is an important distinction, because customers are really not interested in features, they are only motivated by benefits.

When developing your USP, it is important that you put yourself in your prospects’ position. Look at your product or service from the point of view of someone thinking about buying it. Seth Godin wrote a great mini book on the subject called Purple Cow. Give me a call on 09 912-1901 or email me at andy@tradescoach.co.nz and we can talk about developing YOUR Purple Cow and I will give you the mini book as part of the review. It could be one of the most transformational shifts in your business right now and can be done at little cost.

Andy Burrows, Director of The Trades Coach and NZCB Partner. Andy is a business coach, who specialises in mentoring and coaching business owners associated with the construction industry. You can get in touch with Andy on 09 912 1901 or andy@tradescoach.co.nz

IN THE KNOW —

Laminex® New Zealand Technical Update Strandfloor® & Strandsarking® Building strength into the future Laminex® New Zealand in consultation with Blueprint Consulting Engineers and BRANZ recently completed structural testing of Strandfloor and Strandsarking panels. Laminex® New Zealand engaged Blueprint Consulting Engineers (BCE) to carry out structural investigations on the use of Strandfloor® and Strandsarking® as structural diaphragms outside the scope of NZS3604:2011 Timber framed buildings and provide input on the technical data required to undertake specific engineering design (SED) calculations in accordance with NZS3603:1993 Timber structures standards.

As residential housing continues to be in high demand, this makes Strandfloor® and Strandsarking® the ideal choice as a structural wood-based panel product for flooring and roof diaphragm applications for all types of timber-framed buildings, including panelised and prefabricated manufacturing. The tables below list the shear modulus and shear strength properties.

Shear modulus tests on both the Strandfloor® and Strandsarking ® undertaken by Laminex® New Zealand, succeed to qualify both Strandfloor® and Strandsarking® as flooring and roofing panels that can be used for structural applications. Strandfloor® & Strandsarking® are high performance structural panels with excellent modulus of rigidity strength properties. The high strength of Strandfloor® and Strandsarking® results in a very rigid panel for stronger suspended and mid-floor flooring platforms, and roof diaphragms.

Strandfloor® Average Characteristic Properties PRODUCT Strandfloor Statistics

SHEAR MODULUS (GPa) Across Average

1.50

1500

8.73

Along Average

1.47

1470

8.72

All Specimens Average

1.49

1490

8.58

10.2%

10.20%

All Specimens Coefficient of variation

PRODUCT Strandsarking Statistics

SHEAR SHEAR MODULUS (MPa) STRENGTH (MPa)

SHEAR MODULUS (GPa)

SHEAR SHEAR MODULUS (MPa) STRENGTH (MPa)

Across Average

1.41

1410

Along Average

1.60

1600

8.72

All Specimens Average

1.50

1500

8.58

10.2%

All Specimens Coefficient of variation

8.73

Testing was undertaken by BRANZ at the BRANZ Structural Engineering Laboratory and in testing was in accordance with ISO 46572:2008, for determining shear modulus in Panel Products using method B. (BRANZ test report ST-10888-001-01)

For further information and copies of the Blueprint Consulting Engineers and BRANZ Shear test reports, contact Laminex at 0800 303 606 or laminex.co.nz

Paul Clark, Laminex® New Zealand. Laminex® New Zealand delivers expert knowledge on the latest surface solutions from popular and innovative brands including Strandfloor®, Strandsarking®, Seratone® and Melteca®.

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NEXT GENERATION —

Kiwi Charities Receive Bench Seats

Thanks to NZCB Apprentice Challenge In April this year, New Zealand Certified Builders (NZCB) held the annual NZCB Apprentice Challenge. 93 carpentry apprentices from all over New Zealand took part in an eight-hour challenge to build a bench seat, with most completing the bench seat and to a very high standard.

70 bench seats have now been donated to charity. Most of the bench seats have been donated to this year’s selected charity, The Cancer Society which has branches throughout New Zealand. The seats will be set up at various regional Cancer Lodges and Daffodil Houses, where family, friends and those affected by cancer can be accommodated while undergoing treatment. The Cancer Society does amazing work throughout the country and we are happy to support them in this way. A couple of the bench seats will be auctioned off at a charity ball to raise money for this worthy organisation and a handful have been donated to Hospice and other charities. Some of our passionate NZCB members went the extra mile by staining or painting the bench seats before presenting them. Nice one guys, thank you for your additional effort and continued support!

TARANAKI/ MANAWATU

Bench Seats Donated This year, Taranaki and Manawatu apprentices competed in New Plymouth for the regional NZCB Apprentice Challenge. It was great that our regions were able to combine our apprentices enabling us to host a successful day. After a fantastic effort by the apprentices both Taranaki and Manawatu were able to donate their completed benches. On behalf of the Taranaki region, the bench seat made by the Taranaki regional winner Liam Anderson, was donated to the New Plymouth TSB Cancer Support Centre. “It was such a pleasure to be able to donate the bench to Meg Rodel and Michelle Bell in New Plymouth. We know it is much appreciated” said NZCB Taranaki President Adan Larsen. On behalf of the Manawatu region, the bench seat made by the Manawatu regional winner Christine Thomas, was donated to Addis House in Palmerston North. “Christine and I were warmly greeted by Jean Thomas and her amazing team who were delighted with the seat and have found the perfect place for people to enjoy it” said NZCB Manawatu President Craig Whitton.

NZCB Taranaki President, Adan Larsen presenting Liam Anderson’s seat to Meg Model and Michelle Bell from the TSB Cancer Support Centre.

NZCB Manawatu President, Craig Whitton with NZCB Apprentice Challenge Manawatu regional winner Christine Thomas, delivering the bench seat Christine made to Addis House in Palmerston North.

TAURANGA DISTRICTS

Bench Seats Donated The Tauranga Districts donated three bench seats to the Cancer Society Tauranga and two to the NZCB National Support Office (NSO). Before the bench seats were donated, they were all stained and painted by NZCB NSO Group Technical Manager, Jason McClintock. “It was a pleasure to hand over three Apprentice Challenge bench seats to Karen Gemmell at the Cancer Society Tauranga. These seats will be used to reward volunteers as well for fundraising. One in three New Zealanders are affected by cancer, the work the Cancer Society does has a positive and meaningful effect on many lives. To present these bench seats with my committee on behalf of the apprentices, was very rewarding as President.” says NZCB Tauranga Districts President Paul James. NZCB Tauranga Districts President, Paul James presenting one of the Tauranga Districts bench seats to the Cancer Society Tauranga’s Karen Gemmell.

WAIKATO

Bench Seats Donated The Cancer Society in Hamilton was thrilled to receive the bench seats that were donated to them from the Waikato region’s NZCB Apprentice Challenge. These seats will be well-used at several locations around the region, including the Cancer Society’s Lions Lodge in Hamilton. Two of the bench seats will be going up for auction at their Charity Ball in August. NZCB Waikato President, Mike Hayward (back left) and Wintec’s Alan Warburton (back right) presenting one of the Waikato bench seats to the team at the Cancer Society’s Lions Lodge in Hamilton.

NELSON BAYS

Bench Seats Donated NZCB Nelson President Dave Gunter presented four bench seats to Michelle Hunt from the Cancer Society Nelson. The Cancer Society Nelson were pleased with the opportunity to be able to use the bench seats to fundraise for upcoming events, including possibly auctioning one off and using another for a raffle. One bench seat was also donated to CanTeen. NZCB Nelson President Dave Gunter presenting Michelle Hunt from the Cancer Society Nelson with one of the four bench seats donated.

Bench Seats Donated

CANTERBURY

NZCB Canterbury President Richard Poff and NZCB Business Development Manager South Island, Nick Matthews presented seven bench seats to Cancer Society branches in the Canterbury and West Coast regions. The Christchurch Centre, Selwyn Centre and West Coast Centre’s were all very appreciative for the donated bench seats and excited about the fundraising opportunities that they would present. There were a few ideas floating around of possibly auctioning a couple off and even keeping a couple to use as nice, quiet places for people to sit.

One of the Canterbury bench seat donations at the West Coast Centre in Greymouth.

NZCB Canterbury President Richard Poff, presenting the team at the Selwyn Centre in Rangiora with two bench seats

MID & SOUTH CANTERBURY

Bench Seats Donated

NZCB Mid and South Canterbury Regional President, Dan Gallagher was able to present four bench seats, to Cancer Society branches in the Mid and South Canterbury region. In Ashburton, Dan and Vice President Johnny Rive, one of the carpentry apprentice competitors, presented two bench seats to the Mid Canterbury Mackenzie Centre. In Timaru, Dan and Mid and South Canterbury Apprentice Challenge regional winner Liam Finn presented two bench seats to the South Canterbury Centre. Staff at the South Canterbury Centre were absolutely thrilled with the fundraising opportunities this would give them and are brainstorming how they can best use them. A couple of ideas were maybe keeping one to provide cancer sufferers a nice place to sit outside, or auctioning one off.

OTAGO

NZCB Mid and South Canterbury Vice President Johnny Rive with Cancer Society’s Ashburton manager Annie Bonifant.

Bench Seats Donated Bench seats were donated far and wide in Otago with NZCB Otago President Sacha Gray presenting three to the Cancer Society House in Dunedin and one to Dunedin’s Al Huda Mosque. The Otago Polytech in Dunedin also donated a bench seat to the Cancer Society and another one to the local ITM which is displayed at their store.

NZCB Otago President Sacha Gray presenting the three bench seats to the team at Cancer Society House.

NZCB Otago President Sacha Gray presenting the Al Huda Mosque with a bench seat.

TAUPO

Bench Seats Donated NZCB Taupo have donated their bench seats to various causes, including two to the Cancer Society Hamilton, one to ITM Taupo and three to other local charities. NZCB Taupo President Paul Riedel presenting a bench seat to the Cancer Society Hamilton’s Shayne Paterson.

Whangarei

AUCKLAND

Auckland

Little Sisters of the Poor Motat and Mercy Hospice College Hill

Bench Seats Donated

Hamilton

Cancer Society

NZCB Auckland President, Nick Farrelly and NZCB Board Member, Dave Whitehead delivered seats from the NZCB Auckland region Apprentice Challenge to Little Sisters of the Poor (Rest Home Care) Motat and Mercy Hospice College Hill.

Cancer Society – 4 ITM – 2

4 Taupo

New Plymouth Cancer Society

Cancer Society – 2 Local Charities – 3 ITM – 1

Nelson

NZCB President Auckland Nick Farrelly handing over one of the Auckland regions bench seats, to Lesley Cranston from Mercy Hospice College Hill.

Rolleston

Wanaka

Cancer Society

Central Otago Cancer Society

2 Ashburton 2 Timaru

Cancer Society

6 3

Invercargill

Cancer Society

Dunedin

Cancer Society – 4 ITM – 1 Al Huda Mosque – 1

Rotorua

Cancer Society

Sponsors that helped at the regional challenge

1 3

Masterton

Cancer Society

Wellington

Cancer Society

Rangiora

Cancer Society

West Coast

Cancer Society

Cancer Society – 3 NZCB NSO – 2

Gisborne

Cancer Society

Tauranga

Palmerston North

“Thank you so much for the lovely bench seat which is now in our lovely gardens. We are truly grateful for all your support” said Lesley Cranston from Mercy Hospice College Hill.

5 1 6

Cancer Society

Christchurch Cancer Society

70 Bench Seats Donated Nationwide

HEALTH AND SAFETY —

Now You See Me New Zealand has a National day to acknowledge teachers, secretaries, nurses and hairdressers to name a few. We even have a national sausage day… All very deserving of the acknowledgment, even the sausage day but we currently have no day to acknowledge all the workers in New Zealand who on a daily basis put on a Hi Vis shirt of some kind and go out into a hazardous workplace. New Zealand lost 43 workers in workplace accidents in 2018. That is one worker killed every 8.4 days in this country. So far in 2019, there have been 38 workplace deaths with 11 of those in the construction sector so, at the time of writing this, that makes one in every 4.8 days. Not all of these deaths were in the areas where Hi Vis clothing is worn but many were – construction, agriculture and forestry industries leading the way. Those few industries mentioned are also at the top of the statics for suicidal death, with New Zealand’s small population there cannot be too many families in this country who have not been affected by a workplace death in some way. Two individuals in Nelson – myself, Steve McIntyre a Carpentry tutor at NMIT with 36 years’ experience in the building industry; and Murray Leaning, Marketing Manager for Mitre 10 Mega Nelson – are taking it upon ourselves to raise public awareness of Hi Vis workers and get industry support in order to remember those who didn’t come home. The ultimate goal behind the campaign is to raise money for children left behind and affected by the loss of a parent in a workplace accident. What we are proposing is a National Hi Vis Day for 1st May 2020 and ongoing years. Why 1st May? 1st May is International Workers Day, it is also May Day and that is the call sign for immediate or imminent danger – a day where New Zealanders could wear a Hi Vis pin or Hi Vis armband and support the hundreds of thousands of us who put on a Hi Vis shirt and head out into a dangerous workplace. We have written to New Zealand’s 30 biggest companies where Hi Vis clothing is a part of the safety of their business and staff for their support for the campaign. So far, the response has been very encouraging over a broad range of industries – from fishing, farming and roading to the ports. Unfortunately, we are yet to secure a representative from the construction industry to join the campaign.

I feel that Hi Vis clothing has become invisible in this country over recent years, as it is now worn by people wanting to protect themselves from ordinary tasks such as biking or walking, because we see it on a daily basis we don’t associate Hi Vis with entering into a dangerous situation or to caution us to slow down at roadworks as we once would have. In effect, putting the lives of those wearing them at risk. Our aim is to remind New Zealand that Hi Vis-wearing workers are an important part of what makes this country function, to pay respect to those who wear Hi Vis every day, and have a National tribute/remembrance to those that have lost their lives in a workplace accident. They should be acknowledged for the work they undertake and for those workers who have lost their lives in a workplace accident, for their families and friends, have a special day to remember them. So, please – if during the month of April you see Hi Vis pins and ribbons being sold on the streets or from the various companies and industries supporting this campaign – dig into your pockets and make a donation. While we are not able to save all the lives that have been lost, we can make a huge difference to those left behind as a result of a workplace accident. For more information or to get involved check out the link below or email murray.leaning@mitre10.co.nz https://www.tvnz.co.nz/one-news/new-zealand/ national-hi-vis-day-mooted-offer-workers-in-highrisk-industries-more-support-v1 Steve McIntyre, Carpentry Tutor at NMIT. “Now You See Me” a campaign created by Steve and Murray to raise awareness around workplace health and safety, remember those who have lost their lives at work and raise money for the bereaved families.

OUR PEOPLE —

Recognising Our Members! Certificates of Appreciation In recognition of outstanding contributions to New Zealand Certified Builders (NZCB), the following were awarded with Certificates of Appreciation during the recent AGM held prior to the NZCB Conference and Expo. NZCB Board Chairperson Kevin Sceats presenting NZCB Auckland member Grant Boylan with his Certificate of Appreciation.

Grant Boylan – Auckland

Grant joined NZCB in 2002 and was President of the NZCB Auckland Region for five years. Today he is still on the NZCB Auckland Committee.

Adrian (Willy) Williamson – Wellington

Adrian joined NZCB in 2004, has been an NZCB Wellington Committee member for 10 years, and is active in fundraising events.

Bruce George – Taranaki

Bruce joined NZCB in 2002, is a Certified Plans Foundation member and long-time NZCB Taranaki Committee member.

Chris Smith – Taupo

Chris joined NZCB in 2008, was President of the NZCB Taupo Region for five years and on the NZCB Taupo Region Committee for eight years.

Florence Hewitt – Whangarei

Florence has been the Secretary of the NZCB Whangarei Region for 14 years.

Garry Nott – Nelson Bays

Garry joined NZCB in 2007 and was President of the NZCB Nelson Bays Region for six years. Today he is still on the NZCB Nelson Bays Committee.

John Hatton – Mid to South Canterbury

John is a Foundation member joining NZCB in 1998, have given a lot of support to the NZCB Mid to South Canterbury region and NZCB Association over the years.

Mike Wylie – Wellington

Mike joined NZCB in 1999 and has been on the NZCB Wellington Committee for over 10 years and is currently the Treasurer for the NZCB Wellington Region.

Patrick Donoghue – Auckland

Patrick joined NZCB in 2008 and was President of the NZCB Auckland Region for one year and Treasurer for the NZCB Auckland Region for six years.

Richard Poff – Canterbury

Richard joined NZCB in 2008, has been on the NZCB Canterbury Committee for four years. He has been the current President of the NZCB Canterbury Region for the last two years and an NZCB mentor.

NZCB Board Chairperson Kevin Sceats presenting NZCB Canterbury member Richard Poff with his Certificate of Appreciation.

OUR PEOPLE —

Congratulations and Thank You, Dave Brown An unfortunate oversight recently resulted in Dave Brown being missed on the presentation for our valued members who have achieved 20 years’ membership. The presentations took place with those relevant members who were attending the recent Annual General Meeting (AGM) held prior to the New Zealand Certified Builders (NZCB) Conference and Expo, in Christchurch. This oversight was magnified when Dave’s long time business partner Carl Taylor was presented with the recognition at the AGM – even though they joined the Association on the same day in 1999. Humblest apologies Dave.

The Certified Bu ilders Association of Ne w Zealand

“An association of trade qualified builders which promotes professionalism in the construction industry.”

Members of the Certified Builders Association of New Zealand Inc are obliged to apply for a written guarantee when undertaking to build a new home. They are not required to apply for the guarantee, but can offer to do so for alterations & additions and Carpentry Labour Only.

Unfortunately a significant proportion of our industry hold no formal trade qualifications. When you employ a builder

• Loss of Deposit

you often do so on the assumption that they are in fact

appropriately trade qualified. If issues of poor workmanship

• All Members are

On behalf of all our members and staff, thanks and well done Dave – your ongoing support is really valued.

is your builder trade qualified?

Our Mission Statement

• CBANZ® is the only builders asso ciation in New where trade qual Zealand ification is a prere quisite for mem bership. • Through good working relationsh ips with the regu authorities, indu latory stry suppliers and education the Associatio al institutions n and its mem bership keeps industry developm abreast of ents. • Only a Certi fied Builder can offer to provide 10 year Builders the Homefirst Guarantee unde rwritten by a spec insurance com ialist pany. • Certified Build ers will provide a range of stand contracts. You ard choose: Labour Only, Full Cont and Build, Cost ract, Design Plus or Small Work s and Alteration s.

What is the Homefirst 10 Year Builders Guarantee? Members of the Certified Builders Association of New Zealand Inc are obliged to apply for a written guarantee when undertaking to build a new home. They are not required to apply for the guarantee, but can offer to do so for alterations & additions and Carpentry Labour Only.

Unfortunately a significant proportion of our industry hold no formal trade qualifications. When you employ a builder

• Loss of Deposit

• Non-Completion of the dwelling

you often do so on the assumption that they are in fact

• Non-Completion of the dwelling

• Structural Defects for 10 Years

appropriately trade qualified. If issues of poor workmanship

• Structural Defects for 10 Years

The full Guarantee provides cover (subject to the limitations and exclusions in the guarantee agreement) for:

then arise there is little redress for the homeowner.

• Non-Structural Defects for 2 Years

• Alternative Accommodation

Where the Certified Builder is the head contractor, the guarantee covers materials and work completed by the Certified Builder and the sub-contractors engaged by him, subject to the limitations and exclusions in the guarantee agreement.

IF RT

IED BUILD E L AN D

L AN D

EA OF NE W

The guarantee itself is underwritten by Contractors Bonding Ltd, which was established in 1973 and is New Zealand's largest and longest-established specialist bonding, financial risk and surety company.

A SS O C

Phone: 0800 CERTIFIED www.certified.co.nz

The Certified Builders Association of New Zealand Inc is very much about providing the framework and support to assist the consumer in establishing a meaningful and trusting relationship with the builder. The Association gives the builder the tools to be readily recognised by the consumer as a trade qualified builder.

IED BUILD E

Your Certified Builder will help you lodge an application for a guarantee at the time the contract is completed, and before construction begins.

IF RT

OF NE W

Phone: 0800 CERTIFIED www.certified.co.nz

AQ-11092018-CMNZ

This members Qualified as a owned by the has completed and gained eith Carpentry or Na Carpentry they Association to b Carpenter. All ind carry a Gold Mem

Certified Bu

Business Member

is your builder trade qualified?

How do I obtain a Homefirst Builders Guarantee?

Your Certified Builder will help you lodge an application for a guarantee at the time the contract is completed, and before construction begins.

Trade Q

Individual Me

trade qualified.

“An association of trade qualified builders which promotes professionalism in the construction industry.”

The full Guarantee provides cover (subject to the limitations and exclusions in the guarantee agreement) for:

• The Certified Builders Associatio n of New Zeala (CBANZ®) is an nd Inc independent, qualifications trade organisat based ion.

NZCB Chief Executive Grant Florence presents Dave Brown with his 20 year badge.

NZCB Chief Executive, Grant Florence caught up with Dave recently and had real pleasure in presenting Mission Statement What is the Homefirst 10 Year Dave with his 20 year badge.OurDave has provided Builders Guarantee? immense support to NZCB over these years, holding many leadership positions including President of Auckland Region, Board Member of NZCB and Chairperson of the NZCB Board; and he was awarded with Life Membership of NZCB in 2017. In amongst all How do I obtain a Homefirst Guarantee? this, Dave featured in some of our marketing Builders material in the early 2000s, and has recently helped with the launch of our mentoring programme. then arise there is little redress for the homeowner.

Certif & Cer

The Facts

Once accepted as the member can th Certified Build er, ea Platinum Card they

There is a diffe rence a builder and being builder has a com bin the functions and ski operate a succ essful b excellent trade skills, h good trade prac tices) when dealing with the

Once we have establis the business (and we a met all our mem bershi to promote them selves

CERT

TECH TIPS —

Don’t Get Caught Out by IRD Interest Rise For many, the 28 August provisional tax instalment is the first for the 2020 tax year – and failing to pay on time will cost taxpayers more money. That’s because the interest IRD charges when tax is unpaid or underpaid is increasing from 8.22 percent to 8.35 percent. The new rate will apply the day after the 28 August provisional tax instalment is due. Unsurprisingly, the rate adjustment is proving unpopular with accountants and taxpayers. Many are criticising the increase given interest rates are trending in the opposite direction. (IRD says the new rates were set based on market conditions in April.) They also take umbrage that the interest differential between what the taxman pays if tax is overpaid and what they charge if tax is underpaid has increased in IRD’s favour. Nonetheless, it does not change the fact that the cost of not paying provisional tax on time is going to increase. Along with IRD interest, late payment penalties will also apply if a taxpayer does not pay on time. Late payment penalties are administered as follows: • One percent the day after payment was due. • An additional four percent if the tax (including late payment penalties) is not made after seven days. As such, it is important taxpayers pay 28 August provisional tax on time – and know their options if they are unable to do so.

Tax pooling can help with 28 August provisional tax If someone finds paying 28 August provisional tax problematic (or has a more productive use for the money they have set aside for tax), they should consider tax pooling. A tax pooling provider such as Tax Management NZ (TMNZ) deposits date-stamped tax into its IRD account on each provisional tax for taxpayers wanting the option to pay in a manner or at a time that suits them, without having to worry about late payment penalties. The taxpayer has some interest to pay – but it is less than what IRD charges them. A taxpayer can save up to 30 percent on IRD interest with TMNZ. And, unlike an IRD payment plan, there is no need to supply financial information. Approval is guaranteed. Taxpayers entering an arrangement with TMNZ make their payments when it suits their cashflow and TMNZ allocates the tax they need to their required provisional tax date(s). Arrangements can be entered for upcoming or missed provisional tax payments. As the tax TMNZ is transferring to a taxpayer’s IRD account has been paid and date stamped as at the original due date, IRD treats it as if the taxpayer paid 28 August provisional tax on time when they complete the transaction. This, therefore, eliminates late payment penalties. Anyone using the standard uplift, estimation or GST ratio methods to calculate their provisional tax can use tax pooling. However, those using the accounting income method cannot as legislation prevents them from doing so. Feel free to discuss tax pooling with your accountant ahead of your 28 August provisional tax payment if cashflow is tight.

This Tech Tip is brought to you by NZCB New National Partner Tax Management NZ (TMNZ), the largest tax pooling provider in New Zealand. TMNZ offers a smarter way to pay your provisional tax, so you can manage your cashflow, save time and reduce expenses. For more information visit www.tmnz.co.nz

CERTIFIED PLANS —

“The Right Choice!” They say, “put your money where your mouth is”, so we took a gamble, and on 11 September 2013, handed over our first instalment to participate in the then new Certified Plans initiative. architects recruited by NZCB, the Urban, Rural and Coastal categories were born. Six years on and Certified Plans offers a comprehensive suite of 32 plans.

It made perfect sense to us – an opportunity to use an available, growing and comprehensive suite of plans was the perfect scenario for our small provincial building business. The plans were easily accessible online with great artists’ impressions and included a style and a budget for virtually every enquiry. We wouldn’t have to re-invent the wheel each time a client came to us with a rough sketch, a few ideas and, as usual, a very tight budget. Now we could compete on a level playing field or, in our case, a level building site with the group home franchise builders who were steadily invading our turf.

Our clients either contacted us after visiting the Certified Plans website or we introduced them to the promotional material ourselves. The time we saved was considerable and out-sourcing the permit application to the architects was also a real “time” bonus. And we all know that in the building game, “time is money”.

It says on the members website that Certified Plans were created by Certified Builders and they were. However, this doesn’t mean the executive gang met over a few drinks to design some plans to kick it off. What it meant was that they recognised the opportunity this would present, and they set about planning how this could work. An advisory group was made up of members representing different regions nationwide and with budget categories and different geographical requirements – there needed to be real diversity amongst the plan range. Consequently, after much reviewing and with the architectural expertise of the

We found this was a win-win scenario for our clients. They wanted the ease and convenience of choosing from an established plan range, and the confidence of working with a local builder. We were also able to pass cost savings to our clients to make us even more competitive. So, did the initial gamble pay off? Well, of course it did. We’ve done the sums, factored in the Certified Plans costs, the affiliated architects’ costs and also their subsequent additional costs for small amendments we made. Moreover, the Harakeke spec house we built in 2018 sold prior to lining stage. Our commitment to Certified Plans certainly was the right decision for us. Neil and Louise Robbie, Robbie Builders, Foxton Beach

Harakeke “spec” sold prior to lining stage.

WELCOME TO OUR LATEST CERTIFIED PLAN MEMBERS! Gareth Williams Evan Lin Benjamin Gunning Eastridge Homes Brothers Construction Triumph Homes Limited Hamilton Group Limited Palmerston North Auckland

AROUND THE REGIONS —

Tauranga Districts Daffodil Day Challenge

TAURANGA DISTRICTS

Following on from the recent donation of three bench seats to the Cancer Society Tauranga, the Tauranga Districts Committee wanted to take this to another level. As builders face challenges every day on site and by nature are great problem solvers, we thought we’d give our local members a challenge of a different kind. We challenged them to buy a bunch of Cancer Society daffodils for the love in their life/partner or clients.

The Tauranga Districts committee also delivered bunches to our selected Regional Partners.

One in three New Zealanders are affected by cancer – who will you wear your daffodil for?

We made it easy, all they had to do was register their partners/clients details with NZCB National Support Office and we took care of the rest.

NZCB Tauranga Districts President Paul James

Shane Ririnui Business Development Manager – North Island

Another Log on the Fire Kia ora everyone, I hope you’re well and taking extra precautions during winter as it has been very makariri (cold). Whether you’ve been in for a flu jab, taking extra vitamins, wearing multiple layers or throwing an extra log on the fire at night, it’s important to maintain your hauora (health and wellbeing) during the colder months. A good idea is to table this hauora aspect in your next ToolBox meeting with your staff to make sure they’re maintaining their health and wellbeing, which will ensure your business stays at full capacity throughout winter. I was very fortunate to be invited to take part in the first ITM LBP Day in Christchurch on 18 July. If you haven’t heard about or been to an event of this nature, it’s a series of 12 workshops (30-minutes each) where you can achieve six LBP elective points in one day. There was a great turnout of local builders with some travelling from out of town, including the North Island. For the first one in Christchurch, I found this to be well

run by ITM, and a huge success with plenty of potential for further interest next year. The next ITM LBP Day will be held in the Waikato at Claudelands on Thursday 29 August. If you wish to attend, please register through the ITM website. What’s happening for the rest of the year? We’ll be looking to build up our online and on-demand Building Trade Professional (BTP) educational library of webinars, help videos, Chew the Fat sessions, podcasts and industry vlogs. Keep an eye out for new content on the members’ ToolShed, under the ‘Building Trade Professionals’ tab and the members’ Facebook page. I’ll be joining ADNZ and Fairview Systems on their Roadshow in Whanganui and Napier, attending the ITM LBP Day in the Waikato as mentioned above and getting involved in regional activity and membership visits too. That’s all from me for now - I’ll see you in the regions. Ka kite.

NORTH

AROUND THE REGIONS —

Nick Matthews Business Development Manager – South Island

Southern Happenings Do you still have the old CBANZ logo on your vans and website? It’s been three years since the new New Zealand Certified Builders (NZCB) brand was introduced and I’m amazed how many builders’ utes and vans display the old logo. They’re often current members who have the outdated version on their social media and websites as well. The simple fact is; if you don’t have the new NZCB branding, you’re not taking advantage of the advertisement and media campaigns the association undertakes on your behalf. All versions of the NZCB logo, including the brand guidelines can be downloaded from the Members’ ToolShed or contact the National Support Office, if you are unsure on 0800 237 843. In late July, I attended the ITM Christchurch LBP Day. I was joined by NZCB Business Development Manager North Island, Shane Ririnui, and NZCB Canterbury President, Richard Poff – the event MC. Between us and the members who attended, NZCB was very well represented. We joined 240 building practitioners who gained their skills maintenance points required for licencing. We also had several positive enquiries, which have led to new memberships. I know there are similar events planned in the South Island towards the end of the year, so keep an eye out for dates and details.

I’d like to acknowledge our Regional Presidents and their committee members who have been presenting bench seats to our chosen charity – The Cancer Society. It’s great to see all the extra effort going in to paint and stain the seats. Some have even laid concrete pads and installed the seats in public gardens in preparation for remembrance services. Thank you one and all for your support of NZCB. At the time of writing this, many of the South Island regions have events planned for August and September. These include Central Otago, Southland, West Coast, Christchurch and Dunedin. The events are wide and varied, from trade evenings with NZCB Partners JSC Timber, Hilti and Noel Leeming Commercial - and a Niagara Sawmill Factory and Monteith’s Brewery Tour (typical West Coast styles!). I look forward to updating you on these events in my next regional article. Until next time.

Standing: NZCB Business Development Manager South Island Nick Matthews, NZCB Apprentice Challenge 2019 finalist/Canterbury Regional Winner, Tafesilafai Lalomilo. Seated: Cancer Society Canterbury/West Coast Chief Executive Liz Chesterman, NZCB Chief Executive Grant Florence and Cancer Society Executive Personal Assistant, Amanda Warren.

SOUTH

AROUND THE REGIONS —

Industry Events Calendar 2019 EVENTS

CANTERBURY NOEL LEEMING TRADE EVENING

CONZTRUCT TRADE SHOWS

17 Sept 5.30pm–8pm

10–19 Sept

Noel Leeming Moorhouse 166 Moorhouse Avenue | Christchurch

KAITAIA RSA Kaitaia KERIKERI Turner Centre CHRISTCHURCH Air Force Museum DUNEDIN Edgar Centre INVERCARGILL Velodrome, ILT Stadium QUEENSTOWN Queenstown Events Centre

Bring your partner and join us, as Noel Leeming Commercial hosts us and showcases their Built In Cooking. An awesome opportunity for a night out to update your product knowledge, mix and mingle with like minded builders and maybe win an prize! • Guest speaker Mike Reading from Using Technology Better, will be speaking on mobile devices and Microsoft OneNote • Major door prize – built in oven and rangehood • Ladies only prize draw • Reps from Noel Leeming Commercial, Panasonic and Samsung • Live demonstrations • Discounts available exclusively on the night • Auction to raise money for charity • Nibbles provided • Members only

Tue 10th September 4pm – 6:30pm Wed 11th September 4pm – 6:30pm Mon 16th September 4pm – 7pm Tue 17th September 4pm – 7pm Wed 18th September 4pm – 7pm Thur 19th September 4pm – 7pm

CONZTRUCT is for builders, electricians, plumbers, gasfitters and other specialist trades people to further their breadth of knowledge, education and gain a greater understanding of new product technologies. There’s LBP & CPD points available and it’s FREE to attend!

For more information and to register, go to www.conztruct.co.nz

AUCKLAND LBP TRAINING DAY

CONFERENZ CONFERENCE

11 Sept 8am–3pm

22–23 Oct

ASB Showground 217 Green Lane West | Auckland

Crowne Plaza Auckland

NZCB Auckland is proud to hold its second LBP Training Day and its FREE to attend! You will receive: • Training and presentations • 6 Elective Points for the day • All of your Codewords and OnSite Learning for the year • FREE lunch, morning and afternoon smokos • Spot prizes to be won For more information and to register, go to https://www.eventbrite.co.nz/e/auckland-lbptraining-day-sept-2019-tickets-68702028617

Building and Construction Regulation and Law Conference 2019 This is a key event in New Zealand’s building and construction sector. Acquire in-depth knowledge about the latest developments from legal professionals and experienced sector leaders. Hear about a wide range of topics from Building System legislative reform, risk management and liability, to disputes solving. Make sure you don’t miss out!

For more information and to register, go to https://bit.ly/2Jx5sHy 32

NEXT GENERATION —

INDUSTRY TRAINING ASSOCIATION BUILDING

ITAB Apprentice Completions

Ara Institute of Canterbury Daniel Williams

Residential Castles Limited

Rong Yin

Totara Builders Limited

Livinisitone Siania

He toki ki te mahi Trust

Reuben Buzzard

Laing Properties Limited

Katsuaki Shibukawa

Trade Assist Limited

Jayie Paul Rowe

Laing Properties Limited

Isaac William Barkley

MT Grey Building Limited

Nelson Marlborough Institute of Technology (NMIT) Edward Brockway

Elevation Construction Limited

Northtec – Future Trades Bradley Bowmar

Steve Edwards Builders Limited

Jayden Maxwell

Hill Construction (2006) Limited

Otago Polytechnic Dylan Jory

Streamline Construction

Tyler Ford

Kev Jarvis Building Limited

Adam Becker

Rodger Murphy - Builder

Taylor Clark

Adam Turnbull Building Limited

Toi Ohomai Institute of Technology Tauranga Zane Forsythe

D and B Construction Limited

UNITEC Institure of Technology Luke Browne

KC Construction NZ Limited

New Zealand’s Most Employable Apprentices

NEXT GENERATION —

Brian Dillon AST Trust Chairman

Change as the Norm The government may have coined 2019 the ‘year of delivery’, but for the construction sector, and particularly the training within that, it feels like the year of change(s). In February, a proposal (known as RoVE – Review of Vocational Education) was announced, that would see all 16 polytechnics become one, as well as folding in the 11 Industry Training Organsiations (ITOs). A number of changes, some significant, have been proposed to the Building Act and, more recently, we have seen some polytechnics changing their structures to better reflect their size and focus. Despite a relatively short consultation period for RoVE, it’s taken another few months for any more information to come out, but now (following the ministerial announcement in early August), some more detail has emerged. The next two years will be a transition period for polytechnics and ITOs alike, but with a commitment to having the least amount of disruption possible to students, apprentices, and employers. A change of this magnitude will take several years to fully embed, and it’s pleasing to hear that the focus of employers and Industry Training Association Building (ITAB) providers is on best supporting our current crop of apprentices in the best way possible. Following a recent Facebook (FB) discussion from New Zealand Certified Builders (NZCB) members

about the virtues of different apprenticeship models is testament to that – in the end most agreed it’s about what’s best for the apprentice and employer (and that’s pretty good for a FB discussion!). The 2019, NZCB Apprenticeship Challenge finals were a successful part of another NZCB conference, and to ensure the continued success the AST as a key supporter will be contributing to reviewing the event with an eye to making it even better. A number of people at the conference asked ‘how long has it (the finals event) been going now?’ The first event was in 2010, with the announcement of winners being made in a side room while other parts of the conference were going on. We’ve certainly evolved since then, with significant sponsors now supporting it, and the presentations a highlight of the Saturday evening function. I think it’s fair to say that the abilities of the finalists continue to be top-notch, too. Amongst all of this seems to be an ongoing commitment to train, and be trained, in this rewarding sector. We are committed to continuing the functions of AST, to ensure the support is available for those who need it.

NEWS BITES

News Bites

NEWS

Fairview Tight-Lipped on New Engineering Technology for Windows and Doors One of New Zealand’s largest aluminium joinery manufacturers is set to introduce a new suite of products that will “fundamentally change the way windows and doors are specified for residential homes.” Fairview Group R&D Manager, Dave Burggraaf confirmed that the company’s Special Project design team was about to release the new range later this year. “It’s been a long time in the works, but specifiers and builders will instantly appreciate that the results are significant.” Dave Burggraaf says the new system offers a more uniform solution to ensure that the design integrity of window and door joinery throughout a house is consistent, without requiring multiple suites to be used alongside each other. “Our design and engineering team have made over 100 subtle engineering changes to our current offering, and one major one. “There will be a visible difference, which will impact everyone from the homeowner, specifiers to the builder” Fairview General Manager Mark Fisher says the company has been investing heavily in research and

new technology in recent times to ensure the company continues its role at the forefront of the industry in New Zealand. “We’ve basically reviewed everything we’ve been doing for the last 50 years, looked overseas to see what other innovative technology has emerged, and we’ve incorporated the best of it with our own ideas.” Fairview plans to release the new residential later this year, with new commercial building offerings to follow. Mark Fisher was coy about giving any further information due to commercial sensitivities. “The New Zealand building industry is crying out for new ideas about how we can build smarter and more efficiently and that’s the space we want to be active in.”

NEW PRODUCT

Airbow® Concrete The AIRBOW® System is a range of untethered concrete, framing and finishing guns (launching later this year) powered by compressed air, built around a single source of ultra-high-pressure air, the Airbow® Compressor. Developed in NZ, The Airbow® System is made possible by patented Hammerforce® technology, which allows the tools to effectively transform a tiny amount of compressed air into plenty of power to drive the nail home. This is a clean and safe alternative to battery, powder and gas technology. Apart from nails there are no consumables with Airbow®. The compressor, delivering untethered air power, is built for the construction site, is robust and can quick charge any Airbow® Tool in just seconds. This really is a new generation of air powered tools. The latest tool in the range (launching in October) is Airbow® Concrete, delivering nail driving power into all concrete and steel, safely. The gun is untethered and perfectly weighted to minimize recoil, reducing the risk of injury and associated downtime. Giving only the power you need to drive long drive pins home, every time you fire it. No explosives, no electronics, no cords, no batteries. Just pure, compressed air. You need to see this to believe it.

Airbow® Concrete

NEW PRODUCT

Hide-A-Hose™ (Retracting Hose) for your Central Vacuum System We were thinking… if the cleaner is hidden, why can’t the hose be hidden too? The Hide-A-Hose™ retractable hose system solves the problem of carrying and storing a central vacuum hose. Simply pull out the amount of hose you need and begin vacuuming. When finished, the suction retracts the hose back into the wall for you. It is easy to store – simply detach the cleaning wand from the hose, and the suction from the central vacuum power unit retracts the hose into the wall. Hose lengths are available in 9, 12, 15, and 18 metre lengths. Each inlet can cover up to 213m². Can be installed in new and existing homes. For more information visit www.beam.co.nz or phone 0800 10 25 26 NEWS

Applications Open for Site Safe Scholarships Site Safe is supporting New Zealand’s up-and-coming health and safety leaders in the construction sector with its 2019 range of scholarships. Applications for the Site Safe Scholarships are open now and close on 30 August. Successful applicants receive complimentary training on Site Safe courses which can then be used towards a tertiary qualification, such as the new NZ Certificate in Workplace Health and Safety Practice (Level 3). Each scholarship recipient will be teamed up with a skilled Site Safe staff member who will act as a mentor for the training and the assignment work. There are five categories for entry: • Under 25 years of age (any ethnicity) • Open category (any age or ethnicity) • Maori of any age • Pasifika of any age • Woman working in construction (any age or ethnicity)

The other criteria for entry which allows people to be nominated by their employer are: • Applicants are New Zealand citizens or New Zealand permanent residents. • Are over the age of 18. • Are Maori or Pasifika descent (if applying under the Maori or Pasifika category). • Are under 25 years of age (if applying under the under 25 years of age category). • Are women working in construction (if applying under the Women in Construction category). It is fine to enter more than one category if applicants qualify for more than one. For more information and the application form, please go to: www.sitesafe.org.nz/training/ scholarships/

News Bites

NEWS BITES

Gecko Gauge™

NEW PRODUCT

NEW Gecko Gauge™ from James Hardie accelerates the installation of Linea™ Weatherboard The Gecko Gauge is an innovative tool that helps increase installation efficiency for Linea™ Weatherboard. This easy to use tool gauges and supports the weatherboard for a one person install. • Secure lever locks the tool to the underside of the uppermost weatherboard • Adjustable head supports the next board to be installed

• Designed for 16mm Linea Weatherboard – 135, 150, and 180mm • Robust aluminium design for long term durability • Available through all good merchants Visit James Hardie NZ on YouTube to see the Gecko Gauge in action!

NEW PRODUCT

Airbow® Compressor The Airbow® Compressor is the next generation high pressure air compressor with its own built in accumulator tank. You can now charge an Airbow tool in seconds – around 10 to 15 seconds to be exact. The number of nails a tool can fire in a day is not limited by tool refill time as there is also no down time in between refills. The accumulator tank is also detachable to improve mobility. This is a tool designed with construction sites in mind, with a strong tubular metal frame

that is completely enclosed to minimise the opportunity of damage. The robust wheels and retractable handle allow the user to easily move it around. It’s easy to use – just plug and play, and because it uses a special EP grease lubrication system, there is no need for oil changes. And it’s quiet. Just like your Airbow tool, you’ll hardly even know it’s running. Plus it’s better for the environment – say goodbye to expensive butane fuel cells, lithium ion

batteries and powder charges. Just plug your Airbow tool into the Airbow compressor and you have fuel in seconds, and it’s just good, clean air! Available exclusively at PlaceMakers.

Airbow® Compressor

NEWS

Removing Barriers – Over 120 Building Standards Funded for Free Download More than 120 building standards used for Building Code compliance have been funded for free download thanks to a successful collaboration between MBIE (Ministry of Business Innovation and Business) and Standards New Zealand. This is great news for the industry and the public. As a regulator of the building system, MBIE wants to reduce barriers that prevent people from ‘doing the right thing’ within the New Zealand building system. As part of this work, MBIE is funding over 120 standards used for Building Code compliance, which are now free to download from the Standards

New Zealand website https://www. standards.govt.nz/sponsoredstandards/building-standards/ Standards New Zealand manages the process for developing standards and providing access to them. This initiative fits strongly with Standards NZ’s strategy of working with regulators and industry to get more standards prefunded, as well as enabling better access to standards that make a difference to the wellbeing of New Zealanders. This, in turn, helps grow New Zealand for all. This latest funding initiative is a follow-up to a highly successful

pilot between MBIE and Standards New Zealand in December 2017, when MBIE sponsored a handful of important building standards for free download. These standards have since been downloaded over 15,000 times. MBIE expects the success of the pilot will now snowball as these more than 120 standards become free to download, making it easier for people to ‘build it right’ and comply with the Building Code. These building standards directly help demonstrate compliance with the New Zealand Building Code to ensure our buildings and homes are safe and well-constructed.

NEWS

NZCB Welcome New National Partner Red Stage Timber Builders want a superior grade of structural timber that reduces rework, cuts wastage and provides an exceptional finished job for their customers. Red Stag Timber understand the needs of builders and over the past 16 years have established the largest and most technically advanced structural sawmill in the southern hemisphere to provide high quality structural and landscaping timber to precisely meet these exacting requirements. Red Stag Timber products are available through leading builders merchant chains.

IN THE MEDIA —

PMCA licensed copy. You may not further copy, reproduce, record, retransmit, sell, publish, distribute, share or store this information without the prior written consent of the Print Media Copyright Agency. Phone +64-4-4984487 or email PMCA licensed copy. may not info@pmca.co.nz forYou further further copy, reproduce, record, information. retransmit, sell, publish, distribute, share or store this information without the prior written consent of the Print Media Copyright Agency. Phone +64-4-4984487 or email info@pmca.co.nz for further information.

wrong in building and called for guarantees or insurance to be compulsory. ‘‘We think that’s a bit simplistic. We support guarantees absolutely but don’t see that as the complete solution,’’ Kelly said.

Dominion Post, Wellington 23 Jul 2019, by Marta Steeman General News, page 26 - 609.00 cm² Metro Post, - circulation 48,092 (MTWTF--) Dominion Wellington 23 Jul 2019, by Marta Steeman ID 1148732343 BRIEF cm² CERTBUILDE General News, page 26 - 609.00 Metro - circulation 48,092 (MTWTF--)

Dominion Wellington Will insurers in NewPost, Zealand provide this type of23insurance guarantee? Jul 2019, byor Marta Steeman

■ Of that, one-third – $332 million – cover other parties’ defects because they were ‘‘unavailable’’ to pay their share so the b was effectively paid by ratepayers. ■ In Canada and Australia, many provinc and states have made this insurance compulsory.

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NZCB in the News

PAGE 1 of 3

Government considering insurance Government considering insurance Government considering for new house builds insurance for new house builds

forConstruction new house builds

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Builders up shop, the buildGrant than 1Florence, per cent, while Master of Certified they were getting into trouble they folded iteffective chief the executive could get a bit dearer if theinformation. to protect be anissued LBP lifting the levels of mandate it now because you won’t get up and set up as a new company. things renovation going wrong. theirby risks and liabilities. councils had issued codes ofCERTBUILDE compliance Build in1that Halo was independently the buildings. new houses left INDEX unfinished, lostup and they were in de-risking construction ‘‘The cost to thefor industry around the ID 1146199484 BRIEF 1 deposits PAGE of the 3rushing 10-year guarantee between 0.5 per up andInsurance set as aCouncil new company. said Haloiswas different from Master Government requires people toup take technical competency, and by anybody in to provide it,’’ Grafton The wanted the Builders going bust or shutting shop, BuildBuilders, Construction ‘‘But I think all they are doing is just the buildings. managed and underwritten by a syndicate of defects in buildings are all problems this He held the controversial view that sector. ‘‘There’s not much point trying to councils having thattest liability is huge. 1 per cent.Halo was independently The Insurance Council wanted the first out insurance or a guarantee to cover Build in that introducing a fit and proper person said. Government to implement the reforms new houses left unfinished, deposits lost and cent and Lloyds of London. It wasget important to the causing in is the industry. He held themassive controversial view that proposal designed to remedy. councils have no inefficiencies liability. He said the Grant Florence, executive by of Certified mandate it now because you won’t Marta Steeman things going wrong. are all problems this Government to implement the reforms first of Certified managed andchief underwritten a syndicate of andshould ashould codecost of ethics. It wants to simplify defects in buildings underwriter that members ‘‘The to the industry around the councils have no liability. He said the The Ministry of Business Innovation and ‘‘I think if we want to make a step change Builders, said Halo was different from Master model was wrong. Councils were checking marta.steeman@stuff.co.nz anybody rushing in to provide it,’’ Grafton Buildersisgoing bust or Lloyds of London. It was important to the and the insurance industry to have aoftwothe current types of licences and proposal designed to shutting remedy.up shop, Is this type insurance needed? Builders had to have a trade qualification to Employment argues of a councils having that liability is model was wrong. Councils were checking in that Halo was independently in this we need to be bold ... this and type look atcover, that building consents were tohuge. The Press, new The houses left unfinished, deposits lost and and Buildunderwriter said. and the insurance industry toChristchurch have a twothat membersmaybe of Certified year observation period to see how effective Research done for MBIE shows 40 per cent of two tiers of followed licence. Ministry of Business Innovation be ■members. of builders, builder’s warranty, willway.’’ protect homeowners thatintroduce building consents were followed managed andcores underwritten by a syndicate of managing thatto risk a different protect their risks and liabilities. defects in buildings are all problems this year observation period tohomes seeby how effective 17 Jul 2019, Marta Steeman Builders had to have a trade qualification to they were in de-risking the construction new and significant renovations had a Employment argues this type of cover, a Registered Master Builders Association hundreds, may have to complete ‘‘I think if we want to make a step change from substandard building and poor builders. PMCA licensed copy. You may not Lloyds of London. It was important to the protect their risks and liabilities. proposal is designed to remedy. insurance had a role to take first be aislicence of ‘‘But IThe think all tier theywould areThe doing just industry they were in de-risking the construction Is this type ofguarantee insurance needed? be members. sector. ‘‘There’s point trying toKelly said it was chief executive orDavid insurance. builder’s warranty, will protect homeowners further copy, reproduce, Itand is all part ofbuilders a proposed major overhaul ofnot much training a proposed causing in we need be bold look atrecord, underwritermore that members ofunder Certified ‘‘But Ithis think all theyto are doing is just The Ministry of Business Innovation and in sharing the risk and could take technical competency. The second massive inefficiencies in... the industry. ■ Research done MBIE shows 40toper cent ofhome sector. ‘‘There’s not much point trying retransmit, sell, publish, distribute, Registered Builders Association mandate it now because you won’t sensible for people building a new to – one ■for Research estimated about 2.5 per cent from substandard building and poor the Building Act to raise standards and Property, page 1get - 957.00 cm² of the Building Act. managing that risk aaround different way.’’ to haveMaster a trade qualification to Employment argues this type of cover, a builders. Builders hadoverhaul causing massive in the industry. share or store this information more themselves, Florence said. higher level would be arisk specific licence ‘‘The cost to theinefficiencies industry the new and significant renovations hadconsents a mandate ithomes now because you won’t get take out insurance or abuilding guarantee. chief executive David Kelly said it was anybody rushing in to provide it,’’ Grafton in 40 – residential resulted performance in the construction industry. It is all part of a proposed major overhaul of be members. without the prior written to be having an LBP byindustry lifting the levels of As part of the act’s review the The industry had a roleconsent to was takeof builder’s warranty, will protect homeowners Metro - circulation 48,738 (MTWTF--) ‘‘The cost toinsurance the around the Kelly said a concern that this type of for supervision. ‘‘Training programmes councils that liability is huge. guarantee or insurance. anybody rushing in to provide it,’’ Grafton ‘‘It’s a bit like general insurance. don’t sensible for people building a new home the Print Media Copyright Agency. said. MBIE estimates the cost of insurance or a in disputes settled in court or byYou dispute the Building Actbuilding to raiseand standards and Registered Master Builders Association technical competency, and by Ministry of Business, Innovation and to councils in sharing the risk and builders could take from substandard poor builders. having that liability is huge. Construction insurance cover was seen as a ‘‘silver bullet’’ will need to include new+64-4-4984487 competency Phone or email ■of Research estimated about 2.5 per centdown – oneor there to be said. expect your house to burn guarantee would be about 1 per cent the cost take out insurance or a guarantee. resolution processes. chief executive David Kelly said it was performance in the construction industry. It is all part of a proposed major overhaul of introducing fitfor and proper person test Employment has proposed a major moreifrisk themselves, Florence said. info@pmca.co.nz for further ‘‘I think we awant toto make aofastep change tackle struggling consents system. requirements LBP licences,’’ MBIE an■earthquake but if it happens, you need in 40 $4000 – of residential building consents resulted building, for instance that might be Steeman ‘‘It’s aofbit like general insurance. forMarta people building a new home to You don’t and Is this type insurance needed? Consenting authorities paid out $1 billion to MBIE estimates thestandards cost of insurance or a sensible the Building Act to raise and a code of ethics. It wants tothat simplify revamp the licensed building Kelly said concern was thissotype of for the ‘‘Isays think ifits we want toinformation. make a step change in this we need to be a bold ... and at Councils had calling liability in discussion paper. something in40 the background.’’ intype disputes settled in court orper by dispute IDMBIE 1146199484 BRIEF CERTBUILDE iflook the‘‘Every costbeen of building the house is $400,000. this offor insurance needed? marta.steeman@stuff.co.nz out insurance or a guarantee. ■ Is Research done shows cent of in expect your house toscheme burn down or there to be settle building disputes the past 10 years,INDEX 1 performance in the construction industry. guarantee would be about 1 per cent of the costtakepractitioners current types ofto licences and (LBP) under which insurance was seen as a ‘‘silver bullet’’ inthe this wethat need tocover be bold ...be and look at and managing risk awould different way.’’ Master Builders had an independent board be removed from them when things went existing LBP’’ reassessed However, current builder’s warranty resolution processes. ■ Research done for MBIE shows 40 per cent of ‘‘It’s a bit like general insurance. You don’t new homes and significant renovations had a an earthquake but if many it happens, you need estimates cost of insurance 2008-18. ofMBIE building, so forthe instance that mightorbea $4000 introduce two tiers of licence. about 25,000of people, builders, hold managing to tackle a struggling consents system. that risk a different way.’’ cores builders, maybe The insurance industry had a role to take that oversaw its guarantee scheme and wrong inguarantees building and guarantees or new licensed practitioners assessed fromcalled trade for organisations are ■ Consenting authorities paid out $1 to new homes significant renovations had a million expect your house burn down or there to be guarantee orand insurance. something intothe background.’’ guarantee be about 1 per centisof$400,000. the cost ■ Of that, one-third –billion $332 – covered if the costwould of building the house licences. Councils hadinsurance beenhad calling fortake the liability The insurance industry a to role to take independent actuaries advising how much hundreds, may have toneed complete in sharing the risk and builders could costing less than 1 per cent, the organisations be compulsory. under the higher standards. an earthquake but if it happens, you settle building disputes in the past 10 years, guarantee or insurance. The first tier would be a licence of of building, so for instance that might be $4000 ■ Research estimatedmoney about per cent – oneto Master Buildersof had an levels independent other2.5 parties’ defects because they were However, current builder’s warranty Reassessments skill for all board toAbe removed from them when things went in sharing the risk and builders could take the needed set aside to cover more training under a proposed more risk themselves, Florence said. say. MBIE has stopped short of proposing the ‘‘We think that’s a bit simplistic. small number of licensed builders something in the background.’’ Thebuilding Press, Christchurch 2008-18. Research estimated about 2.5board per cent – onetheir technical competency. The second ifguarantees the cost of building the house is $400,000. in■We 40 – residential consents that oversaw its guarantee scheme and to pay so the from trade organisations are licensed building practitioners, new wrong building andtocalled for guarantees or the‘‘unavailable’’ guarantees. Itresulted compared its share guarantee to bill more risk themselves, Florence said. overhaul ofan the Building Act. insurance/guarantee should be 40 compulsory, Kelly said ainconcern was this type ofabsolutely Master Builders had independent board support guarantees but in don’t see might have to upskill meet the new Of that, one-third $332 million – covered However, builder’s in –■residential building consents resulted MBIE says the biggest expected impact higher level would be athat specific licence 17 Jul 2019, by Marta Steeman disputes settled in court by dispute independent actuaries advising how much good process, Kelly says. Asked how was–or effectively paid by ratepayers. costing lesscurrent than 1 per cent, warranty the organisations thattraining, Reserve Bank requirements for insurance and having to pass a fit and insurance to be compulsory. Kelly said a concern was that this type of but says people would have to ‘‘actively’’ opt As part of the act’s review the PMCA licensed copy. You may not insurance cover was seen as a ‘‘silver bullet’’ oversaw its guarantee scheme and that as the complete solution,’’ Kelly said. competency standards, MBIE says. guarantees from trade organisations are other parties’ defects because they were in disputes settled incompanies court or by dispute will be onwas builders who work only on for supervision.further ‘‘Training programmes resolution processes. moneyperson the board needed tothe set cards. aside to coverinsurance many licensed builders will require ■ In Canada and Australia, many provinces say. MBIE has stopped short of proposing the independent copy, reproduce, record, to make sure the scheme proper test are on ‘‘We think that’s a bit simplistic. We cover was seen as a ‘‘silver bullet’’ out. Consenting authorities like councils are Ministry actuaries of Business, Innovation and advising how much to tackle a struggling consents system. costing less than 1 per cent, the organisations ‘‘unavailable’’ toand pay their share so the billinsurance resolution processes. and mixed-use building will need to include newsell, competency retransmit, publish, distribute, Consenting authorities paid out $1 billion tocommercial thethe guarantees. It compared its guarantee to to tackle upskilling, Kelly says: ‘‘I don’t know states have made this solvent. insurance/guarantee should be compulsory, money outdon’t too big a share of■ the claims costs Property, page 1 - 957.00 cm² MBIE also wants to expand the support but see a struggling consents system. board needed to set aside to cover Employment has proposed a major Councils hadguarantees been calling forforking theinformation liability say. MBIE has stopped short of proposing the share or absolutely store this Will insurers in New Zealand provide What do building trade wasand effectively paid by ratepayers. ■ Consenting authorities out 10 $1 years, billion to projects. Those builders who carry out requirements for LBP licences,’’ MBIE settle building disputes in paid the past Reserveto Bank requirements for insurance Key questions were how much risk did the that. I don’t think anyone really knows.’’ compulsory. but says people would have to ‘‘actively’’ opt for defective building work, MBIE says, without the prior written consent of scheme require commercial that as the complete solution,’’ Kelly said. Councils had been calling for the liability the guarantees. It compared its guarantee to revamp of the licensed building Metro - circulation 48,738 (MTWTF--) insurance/guarantee should be compulsory, to be removed them when things went this type of insurance or guarantee? organisations think? ■ In Canada and Australia, many provinces settle building disputes in the past 10 years, or supervised says in its from discussion paper. ‘‘Every 2008-18. Government expect providers of insurancerestricted building work companies to companies make sure scheme wasto to be the Print Media Copyright Agency. are oftenwent the only party left to compensate out. Consenting authorities like councils Bank requirements forthe insurance construction tounder have LBPs removed from them when things but says people would have to ‘‘actively’’ opt are Reserve practitioners (LBP) scheme which wrong in building and called guarantees or executive Part ofthat, the issue with Insurance council chief Tim Grafton Registered Master Builders Association Phone +64-4-4984487 or email and have made this –insurance 2008-18. have tohigh meet new competency existing LBP’’ would be for reassessed and and guarantees to take on.will If it was too Ofbillion one-third – $332 million covered solvent. homeowners. They paid out ■$1 in states 10 forking out tooauthorities big a share of councils the claims to make sure the scheme was supervise other building staff and that wrong in building and called for guarantees or council’s out. Consenting like arecosts companies Will insurers in New Zealand provide info@pmca.co.nz for further about 25,000 people, many builders, hold insurance to be compulsory. licensed builders is said that in principle the insurance chief executive David Kelly says the compulsory. ■ Of that, one-third – $332 million – covered standards and be licensed. new licensed practitioners assessed then the cost of the guarantee or insurance other parties’ defects because they were Key questions were how much risk did the years, 2008-18, to settle building disputes. information. for defective work, forking out too building big a share of theMBIE claimssays, costsand solvent. might require another 12,000 LBPs. At insurance to be compulsory. this type of orWe guarantee? licences. ‘‘We think ainsurance bit simplistic. signing off the work. Thewould members supported the proposals for organisation supports raising the bar for rise they considerably, Kelly said. other parties’ defects because were ID 1146199484 INDEX 1 under thethat’s higher standards. ‘‘unavailable’’ to pay their share soBRIEF the billCERTBUILDE Government expect providers ofdid insurance Key questions were how much risk the are often the only party to compensate for defective building work,left MBIE says, and present the scheme is only for homes Insurance council chief executive Tim Grafton ‘‘We think that’s a bit simplistic. We The reassessment of all existing LBPs Reassessments of skill levels for all support absolutely but don’t seebuilding isnow? asking what insurance to cover new was house and residential builders. ‘‘unavailable’’ to pay share so the bill Aguarantees small number of licensed builders Who provides thisaGovernment type of cover effectively paid bytheir ratepayers. andsmall guarantees to takeapartment on. If it was too high support expect providers of insurance homeowners. They $1 billion in 10 Government are often the only partypaid left out to compensate and to medium that in principle the council’s insurance guarantees absolutely but don’t see might reduce the number of supervisors licensed building practitioners, new thatmight as said the complete solution,’’ Kelly said. skills and abilities are renovations over $30,000. The intent when the LBP scheme first sort it beprovinces mandatory? Boththe of New Zealand’s mainof trade was effectively paidShould by ratepayers. have to upskill to meet new and buildings. guarantees to take on.guarantee If it was too ■building In Canada and Australia, many then the cost of the orhigh insurance that homeowners. They paid out $1 billion in 10 years, 2008-18, to settle building disputes. members supported the proposals for as the complete solution,’’ Kelly said. in the short term because they do not training, and having to pass a fit and Florence of Certified Builders thinks so. needed for supervising other came into effect was that over time the organisations – the Registered Master ■ In Canada andmade Australia, many provinces competency standards, MBIE says. then the costrise of the guarantee orKelly insurance and states have this insurance would considerably, said. years, 2008-18, to settle building disputes. But they would not be rushing inNew to provide To expand the are scheme may be a big Will technical insurance cover building a new house andand meet the higher technical and proper test onsaid. the cards. Homes were often Kiwis’ biggest investment insurers intoNew Zealand provide Builders Association Zealand people. ‘‘That’s good thing competency requirements rise person considerably, Kelly and states a have made this insurance compulsory. Who provides this type of cover now? would that because insurers regarded the ask in an industry the the renovations over $30,000. supervisory standards. That could slow Will insurers in New Zealand provide and they deserved to have confidence in the MBIE also wants where to expand Certified Builders – offer 10-year guarantees, thisWhat type do of or guarantee? that they’re investigating Grant Florence, chief would beinsurance lifted. compulsory. says the biggest expected impact building trade Who this type of cover now? Should it be mandatory? good process, Kelly says. Asked how they selectedMBIE Bothprovides of New Zealand’s main building trade construction sector too risky. competency level for an LBP was builders and insurance down the building estimates this type ofisinsurance or guarantee? scheme to require commercial insuring the work of their Insurance council executive Tim Grafton this.members. This thechief first proper review ofas the Should it be mandatory? Both of New Zealand’s main building trade will be on builders who industry. work onlyIton executive of Certified organisations think? But they would not be rushing in to provide Florence of Certified Builders thinks so. many licensed builders will require organisations – the Registered Master This type of insurance was known as deliberately set low when it started in Insurance council chief executive Tim Grafton another 8000 to 12,000 licensed The cover includes loss of deposits paid to construction companies to have LBPs to saidRegistered that inbecause principle theBuilders council’s insurance Florence of Certified Builders thinks so. investment ‘‘That’s an area that’s supported licensing scheme since then, and the The leaky homes problems organisations – the Registered Master Builders, athat. builders Master Association commercial and mixed-use buildingbuilders that insurers regarded the Homes were often Kiwis’ biggest upskilling, Kelly says: ‘‘I don’t know Builders Association and New Zealand ‘‘long tail’’, where athat policy-holder paid one 2007 because the industry was concerned saidgeneral that in principle the council’s insurance a builder, structural defects including will bebuilding needed if commercial buildings supervise other building and that Homes were often Kiwis’ biggeststaff investment members supported the proposals for had hurt the public’s trust in the Grant Florence, chief been undercooked for quite a feedback from members is Builders Association and New Zealand trade organisation, chief executive David Kelly says the projects. Those builders who carry out The Press, Christchurch construction sector as too risky. and theyChristchurch deserved to have confidence in the members The Press, that. don’t think anyone knows.’’ Certified Builders – offer 10-year guarantees, and feeproposals upfront but guarantee or cover lasted weathertightness, andIwhile. non-completion of the ofreally it might lose too many experienced supported the fortheand are included in the LBP scheme. they deserved to have confidence in the At might require another 12,000 LBPs. insurance to cover building a new house industry. executive Certified says insurance for or supervised Certified Builders – offer 10-year guarantees, organisation raising the bar restricted building work This typesupports of insurance was known as builders they selected and insurance 17present Jul 2019, by Marta Steeman insuring the work ofnot their members. competency standards ‘‘ahouse little bitfor build. 10 years. builders. 17 Jul 2019, by Marta insurance toover cover building aare new and builders they selected andSteeman insurance There should fewer building Builders, a builders If it wasa not Florence said, the scheme is only for homes building newmandatory, house renovations $30,000. insuring work their members. PMCA licensed the copy. You of may ‘‘There are unfortunately of the issue with PMCA licensed copy. You may notloss residential builders. will have to meet newbe competency ‘‘long tail’’, where aThe policy-holder paid one Part The cover includes of deposits The large general insurers in New Zealand too low’’, Kelly says. further copy, copy, reproduce, record,loss construction industry had seen trade organisation, renovations over $30,000. or a major renovation unscrupulous builders, ones possibly who supported that. The leaky homes problems inspection failures and reduced need for The cover includes of deposits paidpaid to to supported and small to medium apartment further reproduce, record, a lottype of tradespeople who licensed builders is that. The leaky homes problems The intent when the LBP scheme first standards and be licensed. fee upfront but the guarantee or cover lasted retransmit, sell, publish, publish, distribute, have shied away from this of insurance. But they would not be rushing in to provide a builder, structural defects including But the extension of the licensing retransmit, sell, distribute, says insurance for numerous failures and even the and LBP should be could not get insurance, would convince Property, page 957.00 cm²building Higher standards expected of structural had the hurt the trust in the building remedial work. buildings. had hurt public’s trust in the Property, page 11 public’s -- 957.00 cm² h biggest b tthey signing off’t the work. The b shareaor orbuilder, store this this informationdefects including haven’t become LBPs because don’t into effect was thatbuilders, over time the share store information 10 years. Butcame they would not be rushing in Only tomillions provide one insurer provides it –past Stamford building a new house that because insurers regarded the weathertightness, and non-completion of the Metro compulsory.they did notThe scheme to commercial ‘‘we’re homeowners need it. best had lost of dollars in the weathertightness, and non-completion of the licensed building practitioners without the prior written consent of industry. reassessment of all existing LBPs To expand the scheme may be a big industry. circulation 48,738 (MTWTF--) without the prior written consent of Government asking what wantGrant theis accountability of signing off the competency requirements Metro - circulation 48,738 (MTWTF--) Florence, chief The construction industry seenwas Insurance. thattechnical because insurers regarded the had or a major renovation the Print Print Media Copyright Copyright Agency. Agency. sector as couple too risky. build. Florence said the insurance issue was not so sure about that’’. needed to a real question build. ofThere years. There LBP scheme is the main way ofsaid, construction the Media If itnot was not mandatory, might reduce the number ofof supervisors IfThe itin was mandatory, Florence said, ask an industry where theFlorence Why is an overhaul the LBP sort work. of skills abilities are. . . how do we Grant Florence, chief Soand we need to say executive of Certified Phone +64-4-4984487 +64-4-4984487 or or email email would beoflifted. numerous failures and even the and should be sector asmark toowas risky. Phone This type insurance known asbiggest Thelarge large general insurers in New Zealand unscrupulous The insurers in New Zealand be a good discussion with commercial around how long building companies ensuring the construction is construction unscrupulous builders, onesworkforce possibly builders, ones who who in the short term because they do not competency level for anpossibly LBP was scheme needed? info@pmca.co.nz forgeneral further executive of Certified Builders, a builders needed for supervising other info@pmca.co.nz for further invest and compulsory. really understand that This isofthe first proper review ofthe thepast best had lost millions of dollars in This type insurance was known as have shied away from this type of insurance. ‘‘long tail’’, where a policy-holder paid one have shied away from this type of insurance. contractors to understand how their information. lasted, Grafton said. competent, skilled and held accountable, could not get insurance, would convince could not get insurance, would convince says the standards meetMBIE the higher technical andof competency information. Builders, a builders deliberately set low when it started in trade organisation, people. ‘‘That’s a good thing supervision role?’’ licensing scheme since then, and the The Press, Christchurch ID 1146199484 BRIEF CERTBUILDE INDEX 1 PAGE 1 of 3 couple of years. There was a real question ‘‘long tail’’, where a policy-holder paid one Only one insurer provides it – it Stamford fee upfront the guarantee orPAGE cover Only one insurer provides – Stamford ID 1146199484 BRIEF CERTBUILDE INDEX 1 butworked, 1lasted of 3 quality and systems considering the more homeowners theythe did not need it.was There had been low MBIE says. trade organisation, homeowners they did not needconcerned it. to be an standards. LBP are tooThat low. could slow says insurance forthe chief executive of supervisory 2007 because industry investigating Grant Florence, Dominion Post general feedback from members iscompanies that that they’re markbut around how long building Insurance. upfront the or cover lasted 17itJul 2019, by too Marta Steeman years. Insurance. Florence said the insurance issueas was numerous andguarantee complicated says for substandard products that had ledbuilding to insurance LBPs have been assessed a new house Florence said the insurance issue was 10fee Many builders rely on building industry. Itconsenting estimates might lose many experienced PMCA licensed copy. You may not this. New building Zealand Certified Builders, says the down the lasted, Grafton said. 10The years. construction industry had new house 23 July 2019 relationships on a large building project. further copy, reproduce, record, or a was majorarenovation prosecution and there competent to carry out and supervise competency standards are ‘‘aseen littlefines. bit As well, authorities to identify non-compliant another 8000 to 12,000 licensed builders builders. ‘‘That’s an area that’s LBPshould scheme had not met some of its There had been lowthe quality and retransmit, sell, publish, distribute, The construction industry had seen or a major failures even biggest and be renovation ‘‘We’re notand convinced that simply widespread non-compliance the restricted work, Property, pagebuilding 1 - 957.00 cm²which is work numerous too low’’, Kelly says. building and to ensure buildings will be neededwork if commercial buildings share or store this information beenwith undercooked for quite a original objectives. One was to provide substandard products that had led to numerous failures and even the biggest and should be compulsory. best had lostthe millions of dollars the past fire protection introducing licensed installation of passive essential to the48,738 structure or of without the prior written consent of But extension ofbuilding thein licensing have been to the consented are included inconstructed the LBP scheme. Higher standards expected Metro - circulation (MTWTF--) confidence to homeowners and to compulsory. prosecution andwas As well, waswhile. bestscheme had losttomillions offines. dollars in past the Print Media Copyright Agency. couple of years. There abuilders, real question practitioner requirements tothe systems and thethere installation of nonweathertightness residential commercial ‘‘we’re plans.should be fewer building There licensed buildingofpractitioners ‘‘There are unfortunately consenting authorities, like councils. Phone +64-4-4984487 or email widespread non-compliance with the couple of years. There was a real question around how long building commercial contractors iscompanies actually the structural seismic restraints. buildings. Underisthe Act not so sure about that’’. There needed to Commercial buildings should be part inspection failures and reduced need for info@pmca.co.nz for further The LBP scheme theBuilding main way of 2004 mark whothat’s occurred.’’ ‘‘We don’t think installation passive fire protection mark around how long building companies a lot of tradespeople Grafton said. information. that weof need to fix. only an LBP can carry outworkforce or supervise lasted, beissue a good discussion with commercial of thework. licensing scheme because the the construction h ’t‘‘It’s b b goodLBP that they are tthey raising the bar remedial haven’t become LBPs because don’t ID ensuring 1146199484 BRIEF CERTBUILDE is INDEX 1Grafton PAGE 1 of are 3 in systems and the installation oftheir nonlasted, said. There had been quality and ‘‘We believe that the real issues restricted building work. to be be an an LBP LBP by lifting lifting the accountable, levels of of contractors tolow understand how buildings were generally more complex competent, skilled and held to by the levels want the accountability of signing off the structural seismic restraints. There had been low quality andfits substandard products that hadthat led to understanding how all Builders on commercial buildings, technical competency, and by by systems worked, considering thetogether more work. So and build, more risks to become should MBIE says.competency, Whytoisdesign an overhaul ofand thehad LBP technical and we needan to LBP.’’ say . . .Ithow do we Construction substandard products that had led towas and fines. As well, there and that really needs to be worked mixed-use buildings and high-rise introducing a fit fit and and proper person test test prosecution numerous and complicated for public safety than a residential alsoreally be compulsory tothat have a LBPs have been assessed asperson scheme needed? introducing a proper invest and understand prosecution and fines. Ascompanies well, there was Marta Steeman Steeman widespread non-compliance with the through with those which are Marta residential buildings, are not included or and a code of ethics. It wants to simplify relationships on a large building project. building. MBIE says the standards of competency trade qualification to be an competent toof carry outItand supervise and a code ethics. wants to simplify widespread non-compliance with the supervision role?’’ marta.steeman@stuff.co.nz The Press, Christchurch of passive firethey protection specialists atconvinced what do.’’ marta.steeman@stuff.co.nz regulated under scheme. the current current typesthe of LBP licences and ‘‘We’re not that simply of commercial building to be anOne-third LBP are too low. LBP. restricted building work, which is work installation the types of licences and Florence, the chief executive of installation of passive fire protection and the installation of nonMaster builders want the2019, by MartaGrant 17 Jul SteemanThe changes would take The Government wants to extend thesystems introduce twostructure tiersPMCA of licence. introducing licensed building inspections failed. Risks on commercial Many builders rely on consenting essential to the or cores of of builders, builders, maybe maybe introduce two tiers of licence. licensed copy. You may not Certified Builders, says the cores systems and the installation of nonstructural seismic restraints. Government to talk with some of ‘‘the New Zealand LBP scheme to this sector. requirements to buildings were notnon-compliant managed adequately, authorities to identify timehad andnot MBIE further copy, reproduce, record, practitioner weathertightness of residential hundreds, may may have have to to complete complete LBP scheme met some of its hundreds, The first first tier would would be a athe licence of distribute, structural restraints. The tier be licence of retransmit, sell, publish, better,seismic larger contractors’’ to co-design MBIE proposes raise standards commercial contractors is actually the1 -aoriginal while the industry has told MBIE building work and to ensure buildings acknowledged buildings. Under theto Building Act 2004 more training training under under a a proposed proposed Property, page 957.00 cm² objectives. Onethat wasin to its provide more share The or store this information technical competency. The second technical competency. second to be LBP bycarry liftingout the levels of consent of issue that we need to fix. building wasconsented now more havecommercial been constructed to the consultation documents. only anan LBP can or supervise overhaul of of the the Building Building Act. Act. the prior written to homeowners and to Metro - circulation confidence 48,738 (MTWTF--) overhaul higher level wouldwithout bePrint aand specific licence higher level would be a specific licence the Media Copyright Agency. technical competency, by ‘‘We believe that the real issues are in focused on pricing of risk than quality plans. Florence says Certified restricted building work. As part of the act’s review the Construction consenting authorities, like councils. As part of the act’s review the for supervision. supervision. ‘‘Training programmes Phone +64-4-4984487 or email for ‘‘Training programmes introducing fit and proper person test understanding how all that fits together assurance. buildings should be part Commercial Builders werethat’s involved in every Builders onainclude commercial buildings, Ministry of Business, Business, Innovation and and info@pmca.co.nz for further ‘‘We don’t think occurred.’’ Ministry of Innovation will need to new competency Marta Steeman will to new competency and aneed code ofinclude ethics.information. It wants to simplify and that really needs to be worked of the licensing scheme because the workshop MBIE held last year on mixed-use buildings and high-rise Employment has proposed a major ‘‘It’s good that they areINDEX raising the bar Employment has proposed a major requirements forof LBP licences,’’ MBIE marta.steeman@stuff.co.nz ID 1146199484 CERTBUILDE PAGE of 3 requirements for LBP licences,’’ to bcomplex the current types licences and MBIE through with those companies which are BRIEF buildings were2generally more the proposed changes. He is 1 residential are not included revamp of of the the licensed licensed building building revamp Registered Master says in in its itsbuildings, discussion paper. ‘‘Every or says discussion paper. ‘‘Every a introduce two tiers of licence. specialists at what they do.’’ to design and build, and had more risks neutral on expansion to become an the LBP.’’ It shouldof the the LBP cores of(LBP) builders, maybe practitioners (LBP) scheme under which which regulated Builders practitioners scheme under existingunder LBP’’ would would bescheme. reassessed and and existing LBP’’ be reassessed t Master builders want the for public safety than a residential LBP to commercial also bescheme compulsory to have a The Government wants to extend of the hundreds, may have to complete about 25,000 25,000 people, many builders, hold Association chief about people, many builders, hold The first tier would be a licence new licensed practitioners assessed new licensed practitioners assessed Government to talk with some of ‘‘the building. buildings. trade qualification to be an LBP scheme to this sector. more training under a proposed executive David licences. licences. technical The second under the thecompetency. higher standards. standards. under higher better, larger contractors’’ to co-design a Kelly says One-third of commercial building MBIE has not addressed the LBP. MBIE proposes to be raise the standards The Press, Christchurch overhaul ofof the Building Reassessments of skill levels Act. for all all Reassessments skill levels for higher level would specific licence A small small number ofalicensed licensed builders MBIE says thewould biggest expected impact inspections failed. Risks on commercial A number of builders commercial good process, Kelly says. Asked how power imbalance between a The changes take As part of the act’s review the licensed building practitioners, new 17 Jul 2019, by Marta Steeman licensed building practitioners, new for supervision. ‘‘Training programmes might have to to upskill upskill to meet the new new willand be on builders who who workisonly on might have meet the builders are not PMCAto licensed copy. You may notmany licensed builders will require buildings were not managed adequately, building company owner time MBIE Ministry Business, Innovation and training, of and having to to pass a a fit fit and and training, and having pass will need to include new competency competency standards, MBIE says. record, further copy, reproduce, convinced the commercial and mixed-use competency standards, MBIE says. while the industry has told MBIE not an LBP, and the LBP. acknowledged that in its Thebuilding Employment proposed a major proper person personhas test are on on the the cards. sell, publish, distribute, upskilling, Kelly says: ‘‘I don’t know proper test are cards. requirements forretransmit, LBP licences,’’ MBIE licensed building Property, page 1 957.00 cm² projects. Those builders who carry out share or store this information that. I don’t think anyone really knows.’’ commercial building was now more should owner mightdocuments. tell the licensed consultation revamp the wants licensed MBIEofalso also wants to building expand the the MBIE to expand says indo its discussion paper. ‘‘Every What do building trade without the prior written consent of or supervised restricted building work focused on pricing of risk thanscheme What building trade Metro - circulation 48,738builder (MTWTF--) quality to do something they Florence says Certified practitioners (LBP) scheme under which scheme to require commercial apply to them. the Print Media Copyright Agency. scheme to require commercial existing LBP’’ would be reassessed and Part of the issue with organisations think? willwere have to meet new competency k organisations think? assurance. Phone +64-4-4984487 or email disagree with but the Builders involved in every about 25,000 people, manyto hold construction companies tobuilders, have LBPs LBPs to construction companies have to new licensed practitioners Registered Master Buildersassessed Association licensed builders is standards and be licensed. Registered Master Builders Association info@pmca.co.nz for further f ll h b ild A workshop MBIE held last year on licences. consequences fall on the builder. A supervise other building staff and that supervise other building staff and that information. under the higher standards. chief executive executive David Kelly says says the the signing off the work. The chief David Kelly to b the proposed He is of Reassessments of skill levels for all might require another another 12,000 LBPs. At different type of licence forall ID what 1146199484 BRIEF CERTBUILDE INDEX 1building PAGE 2 of 3 Thechanges. reassessment existing LBPs might require 12,000 LBPs. At A small number of licensed builders Registered Master organisation supports raising the the bar for for Government is asking organisation supports raising bar a neutral on thereduce expansion of the as licensed building practitioners, new present the the scheme is only only for for homes homes company owners is number needed might the ofwell, supervisors Builders present scheme is might have builders. to upskill to meet the new residential builders. sort of skills and abilities are residential t LBP Florence scheme commercial training, having to pass a fit and and small smalland to medium medium apartment says. Association chief in the to short term because they do not and to apartment competency standards, MBIE says. The intent when the LBP scheme first needed for supervising other The intent when the LBP scheme first buildings. proper person test are on the cards. executive David buildings. meet the higher technical and buildings. came into into effect effect was was that that over over time time the the people. ‘‘That’s a good thing came Kelly says MBIE has notthe addressed theThat could slow MBIE also wants to expand To expand expand the scheme scheme may the be a a big big What are main impacts? supervisory standards. To the may be technical competency requirements What do competency building trade that they’re investigating technical requirements commercial power imbalance between a scheme toindustry require commercial th bi t t d i t ask in in an an industry where the the MBIE says the biggest expected impact down the building industry. It estimates ask where good process, Kelly says. Asked how would be be lifted. lifted. think? organisations this. would builders are not building company who is only construction companies to have competency level level for an an LBP LBP wasLBPs to will be on builders who work on another 8000owner to 12,000 licensed builders competency for was licensed will require Registered Master Association This is is the the first Builders proper review review of the the many‘‘That’s anbuilders area that’s convinced the This first proper of not an LBP, and the The building supervise other building and that deliberately set low low when whenstaff it started started in commercial andLBP. mixed-use will be needed if commercial buildings deliberately set it in upskilling, Kelly says:for ‘‘I quite don’t aknow chief executive David Kelly says licensing scheme since then, andthe the been undercooked licensed building licensing scheme since then, and the owner might tell the licensed might require another 12,000 LBPs. At 2007 because because the the industry industry was was concerned concerned projects. Thosein builders who carry out are included the LBP scheme. 2007 scheme should I don’t think anyone really knows.’’ organisation supports theis for that. general feedback feedback fromraising members isbar that while. general from members that builder toThere do something they present scheme is only for homes it might mightthe lose too many many experienced or supervised restricted building work should be fewer building apply to them. it lose too experienced residential builders. ‘‘There are unfortunately k Part of the issue with competency standards are ‘‘ascheme little bit bit disagree with the newand and small to medium apartment builders. will have but to meet competency competency ‘‘a little inspection failures reduced need for builders. The intentstandards when theare LBP first a lot of tradespeople who licensed builders is too low’’, low’’, Kelly says. f ll h bon ild A buildings. consequences fall the builder. A standards and be licensed. too remedial work. came intoKelly effectsays. was that over time the h ’t b LBP b haven’t LBPs because tthey don’t signing offbecome the work. The But the thecompetency extension of ofrequirements the licensing licensing To expand the scheme may beof a big different type of licence for building Higher standards expected of But extension the technical Higher standards expected want the accountability of signing off the The reassessment existing LBPs Government is asking what scheme tolifted. commercial builders, builders, ‘‘we’re ‘‘we’re ask in an industry where the company owners neededofasall well, licensed building practitioners scheme commercial Why is anisoverhaul of LBP would beto licensed building practitioners work. So weand need to say are . . . how do we might reduce the number ofthe supervisors sort of skills abilities not so sure about that’’. There needed to competency level for an LBP was The LBP scheme is the main way of Florence says. notThis so sure about There needed scheme needed? The LBP scheme is the main way of is the firstthat’’. proper review of theto invest and really understand that in the short term because they do not needed for supervising other be a a good good scheme discussion with commercial deliberately low when itworkforce started inis ensuring the theset construction workforce is be discussion with commercial MBIE says the standards of competency ensuring construction licensing since then, and the supervision meet the higher technical and people. ‘‘That’srole?’’ a good thing contractors to understand understand how their their 2007 becauseskilled the industry was concerned competent, skilled and held held accountable, are main contractors to how to bethe an LBP areimpacts? too low. competent, and accountable, general feedback from members is that the chief executive of What standards. could that Grant they’reFlorence, investigating systems worked, worked, considering considering the the more more it might lose too many experienced MBIE says. MBIEsupervisory th bi t relytThat d iconsenting t slow systems Many builders on MBIE says. New Zealand Certified Builders, says the down the building industry. It estimates competency standards are ‘‘a little bit this. numerous and complicated builders. LBPs have been assessed as numerous and complicated authorities to identify non-compliant LBPs have been assessed as LBP scheme had not met some of its another 8000 to 12,000 licensed builders too low’’, Kellyon says. ‘‘That’s an area that’s relationships on a large large building building project. project. competent to to carry carry out out and and supervise supervise relationships a building work and to ensure buildings competent original objectives. was will be needed if commercial buildings But the not extension of the licensing been undercooked forOne quite a to provide ‘‘We’re not convinced convinced that simply restricted building work, work, whichof is work work Higher standards expected ‘‘We’re that simply have been constructed to the consented restricted building which is confidence to homeowners and to are included in the LBP scheme. scheme to commercial builders, ‘‘we’re while. introducing licensed building building essential to to the structure structure or licensed building practitioners introducing licensed plans. essential the or consenting like councils. There should be fewer building not so sure about that’’. There ‘‘There areauthorities, unfortunately practitioner requirements to needed to The LBP scheme isof main way of weathertightness ofthe residential practitioner requirements to Commercial buildings should be part weathertightness residential ‘‘We don’t think that’s occurred.’’ inspection failures and reduced need for be a good discussion withis a lot of tradespeople who commercial contractors iscommercial actually the the ensuring construction workforce is buildings.the Under the Building Building Act 2004 2004 commercial contractors actually of the licensing scheme because the buildings. Under the Act The Press ‘‘It’s good that they are raising the bar remedial work. h ’t b LBP b t contractors to understand how their issue that we need to fix. haven’t become LBPs because they don’t competent, skilled and held accountable, only an LBP can carry out or supervise issue that we need to fix. buildings were generally more complex only an LBP can carry out or supervise systems worked, considering the more 17 July 2019 ‘‘We believe believe that that the the real real issues issues are are in in want accountability signing off the MBIE says.building restricted building work. work. ‘‘We to design and build, and had more risks tothe become an LBP.’’ Itofshould restricted Why is an overhaul of the LBP numerous and complicated understanding how all all that that fits fits together together work.also So we need to say .to . .have how do LBPs have assessedbuildings, as Builders onbeen commercial buildings, understanding how for public safety than a residential be compulsory a we Builders on commercial scheme needed? relationships on a large building project. and that really needs to be worked investtrade and really understand competent carry out and supervise mixed-use to buildings and high-rise and that really needs to be worked building. qualification to bethat an mixed-use buildings and high-rise MBIE says the standards of competency ‘‘We’re not those convinced that simply through with those companies which are are supervision restricted work, is workor residentialbuilding buildings, arewhich not included included or through with companies which One-third of commercial building LBP. role?’’ residential buildings, are not to be an LBP are too low. introducing building specialists at atlicensed what they they do.’’ Grant The Florence, thewould chief executive of essential the structure or regulatedtounder under the LBP LBP scheme. scheme. specialists what do.’’ inspections failed. Risks on commercial changes take regulated the Many builders rely on consenting practitioner requirements to Master builders builders want the the New Zealand Certified weathertightness of residential The Government Government wants to to extend extend the the Master want buildings were not managed adequately, time and MBIE Builders, says the The wants authorities to identify non-compliant commercial actually the Governmentcontractors to talk talk with withissome some of ‘‘the ‘‘the LBP scheme had not that met some buildings. Under thesector. Building Act 2004 LBP scheme scheme to this this sector. Government to of while the industry has told MBIE acknowledged in its of its LBP to building work and to ensure buildings issue that we need to fix. to better, larger contractors’’ to co-design co-design a a original objectives.documents. One was to provide only an LBP can carry out or MBIE proposes to raise raise thesupervise standards better, larger contractors’’ commercial building was now more consultation MBIE proposes to the standards have been constructed to the consented

Marta Steeman

Builders may have to go back to school

S S

Builders may have to go back to school

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NZCB InHouse Magazine August September 2019

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