NZCB InHouse magazine December 2021/January 2022

Page 4

FROM NZCB —

Ian Chamberlain NZCB Board Chairperson

Message from the NZCB Board The importance of communication during a challenging year Earlier this year, I sent a letter to the Construction Sector Accord to raise the issues affecting the construction industry at the time. This included making them aware of the ongoing struggle for many of us to access standard building materials (such as timber framing and strand floor) and the knock-on effect this was causing, with alternatives also becoming in short supply. I explained how this impacts costs and timelines, not just for the builders but for our clients, consenters, designers, and more. The letter highlighted some of the reasons behind these supply issues, including shipping problems at Auckland Port leading to some container ships bypassing New Zealand altogether and heading straight to Australia. The cost of shipping had almost doubled at that point, causing some suppliers to stop importing because it was no longer cost effective. Both situations were contributing to standard building supply problems. The upshot of this letter was that while some members accept the issues we’re facing, other government departments involved with the Accord did not consider or recognise there was a problem. However, since then, numerous media reports have voiced these issues and we are currently waiting to see how the Accord intends to address them.

Client communications There are small but effective measures we can take in our day-to-day work to deal with the issues we’re facing. Many of us are struggling to get sub-trades, materials are in short supply, and costs are rising, leading to stressed customers. Changing COVID-19 alert levels are also affecting who can be on-site and how they work.

• Include extra cost management to run your projects on and off site and allow for longer durations due to the stop/ start nature of delays.

Processes we can put in place to help get us through these times, include: • Keeping the communication lines open with our suppliers and sub-trades to ensure we’re kept informed regarding lead-in times, supply issues, and rising costs. • Speaking to your customers and new clients about their expectations and the realities of current times. Though it’s not easy, it will help prepare them for the ongoing situation. • Talk about price increases and let customers and new clients know how the contract responds to price increases. • Explain any delays and if you’re unable to procure items resulting in delays which may impact construction times, contract costs and possible stop/start approach to the job. • The same goes for COVID-19 alert levels. Speaking to clients in advance may help them understand why builders are not on-site every single day. • Allow in your timeline for having sub-trades on-site one at a time, so if alert levels rise this is covered in the job schedule.

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• Consider allowing for an increase in ongoing costs caused by delays or lockdowns – scaffolding hire would fall into this category. One suggestion is to price ongoing services like this as a provisional sum. • If you foresee it will be a challenge to accurately price the job, or components of the job, or think price increases will impact your original estimate, consider using the Cost and Mark-up contract instead of the Fixed Price+ Contract, as the Cost and Mark-up contract will naturally respond to price increases. Alternatively, fix the price for stages of the build ensuring to keep fixed costs within a reasonable time-frame. Review this before you carry on to the next stage to allow for cost fluctuations. Two very useful New Zealand Certified Builders (NZCB) videos explaining how fixed price and cost and markup contracts work, and what they do and do not cover, are: Building Materials – Delays & Defects: https://vimeo.com/548175414 NZCB Contracts & COVID-19 Disruptions: https://vimeo.com/605338400


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IN THE MEDIA

6min
page 70

Message from the AST Trust

2min
page 67

Eliminate moisture problems with INTELLO® from pro clima

2min
pages 64-65

Ceiling diaphragm common questions

3min
pages 62-63

Auckland makes the most of lockdown

3min
page 60

The NZCB Group Health Plan through nib

2min
pages 56-57

Tasks to tick off for new contractors

2min
page 58

Responsible hosting for staff functions

3min
pages 54-55

Resetting the baseline – recovering from burnout

1min
page 53

Hidden hazard for outdoor workers

3min
page 52

Change your thoughts and you change your world

3min
pages 50-51

Red QS’s top five tips on pricing a renovation

3min
page 43

Workforce continues to grow despite COVID-19

3min
page 42

How standard-form building contracts deal with COVID-19

6min
pages 46-47

Spotlight on research

5min
pages 48-49

The effects of moisture in timber

3min
pages 40-41

Celebrating women in construction

11min
pages 36-39

New Code of Ethics for Licensed Building Practitioners

2min
pages 34-35

Completion Certificates and Waiver of Subrogation

4min
pages 12-13

Tax on Christmas parties and presents

1min
pages 32-33

Selling for non-salespeople

3min
pages 28-29

Motivation: get your team (and customers) on board

3min
page 30

Building a greener future for all

3min
page 31

Vaccination issues in employment

2min
page 27

REVERE Volume 6

4min
page 26

Staff changes at the National Support Office

2min
pages 24-25

COVID-19 communications

1min
page 21

Board Bites

2min
page 6

Message from the NZCB Board

3min
pages 4-5

Putting our partners in the spotlight

2min
page 20

NZCB holiday closure

1min
page 7

Message from the Chief Executive

3min
pages 8-9

Why you should review your insurance programme

4min
pages 18-19

NZCB electronic membership ID cards

1min
page 11
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