NZCB InHouse December 18/January 19

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

December 2018/January 2019 — Halo Frequently Asked Questions

Pg 12

Your One-Page Action Plan for 2019

Pg 26

Centrespread —

Upping NZCB’s Digital Presence Pg 18

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Contact: 10 Marsh Street, Tauranga 3110 PO Box 13405, Tauranga Central, Tauranga 3141 Phone: 07 927 7720 Freephone: 0800 CERTIFIED Fax: 07 927 7721 www.nzcb.nz ISSN 2463-3305

NZCB NEWS

TECH TIPS

Small Business Productivity & Innovation

A Trail of Breadcrumbs

Goodbye and Thanks to Eve...

Halo Guarantee Frequently Asked Questions

IN THE MEDIA

Construction Culture Needs Changing

Finding the Best Deal for Your Insurance

KiwiBuild Ramping Up Quickly, But Quietly

Builder to Business Owner Workshops

Building Compliance

National Support Office Christmas Closure 21 REVERE Volume Two, Coming Soon!

Homeowner Survey Results

Message from the Chief Executive

HEALTH AND SAFETY Be Prepared

IN THE KNOW Keeping Employee Information and Personal Files

Your One-Page Action Plan for 2019

10 Signs of a Good Builder

My Top 5 Tips on Pricing a Renovation

If You Make a Mistake in a Building Contract, Can You Fix It Up Later? 32 Prefabrication in Building

NEXT GENERATION ITAB Apprenticeship Completions

AST Trust – A New Beginning

Buy Your Business the Best Present of All

SEE HOW OUR DIGITAL STRATEGY IS WORKING FOR OUR MEMBERS

AROUND THE REGIONS Whangarei Trade Training and Apprentice Recognition

Auckland Home Show Banding Together and Member Recognition

The Best BUILDNELSON Expo Yet!

Credit to Taranaki for Cyclone Relief

Canterbury Quiz Night and Fundraiser

Shane Ririnui – North Island Nick Matthews – South Island

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

10 11

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NZCB NEWS — Mike Craig NZCB Board Member

Small Business Productivity & Innovation Well this year has disappeared! I would like to wish you all a Merry Christmas, a happy New Year and a safe holiday. I would like to thank the staff at NSO for their hard work, as well as the Board and Grant for their input and time above the call of duty. Do you have up to 20 staff on the books? Most of our members do, making us officially ‘small businesses’. After nearly 40 years as a Trade Qualified Carpenter and 20 years as a Certified Builder, I’ve come to realise what small business owners are up against and what’s expected of them. As a small business owner, do you feel recognised as contributing to New Zealand’s economy? There are more than 500,000 small businesses yet I question whether the Government considers them important. We often hear comments regarding low productivity and innovation in our sector and that we should be more like overseas companies with larger, more efficient businesses. I disagree! We have a smaller population and Kiwis lead different lifestyles. We want to be independent, successful, own a small business and be self-employed. Small Kiwi businesses employ 30% of the New Zealand workforce and add 27% to the New Zealand Gross Domestic Product. Small businesses are good for Government with the taxes they produce compared to large companies. Small business people can afford to build new houses and turning small businesses into low income workers stops that cycle. How well are the large building companies doing? Not well if you look at the latest media coverage. So, what about productivity? Our time is often taken up with more compliance e.g. local Government, resource consents, health and safety, administration paper work, pricing and repricing to fit budgets, micromanagement of workers (lack of skilled carpenters, other trades), council documents, clients asking for more information….the list goes on.

What does NZCB do for small business owners? We’re in the middle of a big change with the new generation of tech-savvy builders and older builders seeing their time out. As a group, we’re the biggest building company in New Zealand and the Board is always looking at ways to help small businesses gain skills, increase productivity and remain competitive. We know it comes down to having more skilled staff, buying power, business technology and realistic health and safety policies. Being on the wrong side of earth and operating in a small market, we have to ensure affordability or costs will run out of control for clients. To create more time for building houses (and fewer late nights buried in paperwork), could we look at setting up business hubs to handle building office work (eg: pricing, accounting)?

Small Kiwi businesses employ 30% of the New Zealand workforce and add 27% to the New Zealand Gross Domestic Product. Could investing in technology as a group change how we do business? Food for thought. What can Government do? For a start, recognise that building a house is the biggest investment any New Zealander will make so fund the trades and get the skill levels up to what they were 30 years ago (how much did they spend on the leaking building crisis!?). They could also help builders attract young staff with incentives, fix the high cost of land, review the resource consent process and find ways to stop the boombust cycles. Last, but not least, take more care and consideration when bringing in policy that they stop and think about impact on small business as I would say it’s their biggest asset! Until next time.

Are we innovative? I think so. We’re seeing more kitsetstyle building and more specialised trades doing more of the work. We have new technologies, such as Xero and software management, and more young, sophisticated business-minded builders using them.

NZCB NEWS — Jason McClintock Operations Manager

A Trail of Breadcrumbs The motivation for builders to issue variations is to secure payment for work completed but the residential sector needs to calibrate this way of thinking to avoid issues down the track. Let’s take the Cost and Margin situation. The contract has been signed based on a set of documents [consented or not]. From this point the builder is entitled to payment as and when instructed to undertake the contracted works. So, if we believe that no matter what changes are made the builder is entitled to payment, then there’s no reason to issue variations because payment is already secure.

How many builders are creating variations despite no effect on payment, and why is this an issue?

There are several reasons why this mindset will one day set the builder and client up for failure. We need to go back to the traditional way of thinking and look at what the motivation for a variation is.

The Association’s contracts address variations in the first instance as a directive that comes from the client and that makes good sense when the variation is based around compliance and contracted documents. Unlike other contracts in the market, the NZCB contracts are then cleverly written so the builder is not disadvantaged when it comes to a variation payment.

Firstly, there’s the test of the builder’s entitlement to payment and their obligations under the building contract. Secondly, the client’s responsibilities of compliance may be at risk, and thirdly both the builder and client may have impacted on Halo’s Guarantee cover on these plan/specification variations.

The responsibilities of consenting and CCC sit with the client so it could be argued that the only person who can issue a variation to the contract is the client. Because this is impractical, the Association’s contracts allow the builder to take instructions and create a variation order. If this variation to the contracted document doesn’t take place, is the builder entitled to payment? This is the trap Cost and Margin contracts fall into.

The Halo policy also recognises variations, requiring variations to be agreed upon in writing in order to fall under the Halo policy cover. Not doing so may impact on the client’s cover and the builder’s “sleep easy” provisions. So, if we can shift our thinking of variations based on ‘entitlement to payment’ across to ‘recognising a change to the contracted documents’ then we’re working in the best interest of both client and builder. This may now challenge variations based on items which are not affected by compliance, such as labour blow outs on estimated work. To ensure the builder’s entitlement to payment, make sure your client agrees via a signed variation and don’t assume payment is forthcoming simply because of the charge up mindset. At the end of the day the variation order creates a trail of breadcrumbs to demonstrate agreement, which then allows the contract to back the builder’s entitlement to payment and protect their liabilities going forward.

NZCB NEWS —

Goodbye and Thanks to Eve... We are sad to say goodbye at Christmas time to Eve Cooper our Membership Services Manager. Eve’s husband Rob has received a promotion and they are both relocating to Wellington from the sunny Bay of Plenty. Eve has been a valued part of the NZCB team for more than nine years. She has been the key driver behind the work that she and her membership services team have done over the years and, in particular, the planning and delivery of the association’s annual conference and AGM. These events are now recognised across the building industry as the benchmark and we have seen

attendance number grow year on year – to the nearly 800 at our last conference in Rotorua. Eve has been key to these events and their success. Always one with some humour, Eve has done a great job for the Association and has always been supportive of our wider NZCB family. We are very sorry to see her go and on behalf of all members and staff we wish Eve well for the future.

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AROUND THE REGIONS —

Whangarei Trade Training and Apprentice Recognition

Whangarei Members listening to Dr Jim McLeod.

With Mental Health Awareness week in mind, the Whangarei region invited Dr Jim McLeod to speak at their Trade Training Evening. Dr McLeod has been discussing health in the workplace for more than 20 years and spoke about how we can help ourselves and our mates. If you notice a small change in behaviour, appearance or mood in someone around you, it’s ok to say, “Hey mate, how are things going, is everything alright?” says NZCB Whangarei President Peter Brown. From the top: ITAB Apprentice Alan Findlay and NZCB Whangarei President Peter Brown. ITAB Apprentice Lachlan McLeod, his employer and NZCB Board Member Mark Dobbs, with NZCB Whangarei President Peter Brown ITAB Apprentice Mike Hutton and NZCB Whangarei President Peter Brown.

AROUND THE REGIONS —

Auckland Home Show, Banding Together and Member Recognition Showcasing NZCB at the country’s biggest home show

This year, we put out a call for help on Facebook and a huge ‘thank you’ goes out to the business owners who put their hands up. The team who ‘manned the stand’ this year included the Auckland Committee (Patrick Donoghue, Nick Farrelly, Stavros Evangelidakis, Carol Frisby-Shilton, Chris Boyle, Peter Headland and Callum Sheridan), Shane Ririnui (NSO), Rakesh Kumar (Onsite Building Construction Limited), Dave Whitehead (Board member), Brett and Laureen Goodger (LBG Builders Ltd), Jimmy Liu (Jimmy Building Services Limited) and Barbara MacGregor (My Home Renovations Ltd). Thanks also to Rob Shilton for helping set up and break down the stand and for delivering the lightbox. More events focusing on our local Auckland builders are in the pipeline for 2019. First up is our Auckland Golf Fundraiser Day on 21 February. Please register and pay by 21 December 2018 and go in the draw to win a Makita tool valued at approx $900.

Auckland committee band together to help a mate

NZCB Auckland regions stand at the Auckland Home Show

More than 43,000 people from across the country headed to Auckland for New Zealand’s largest home show – the Auckland Home Show from 5-9 September. People from all walks of life attended but I’m not sure where they parked given the decreasing number of carparks due to the huge construction site next door to Alexandra Park! The organisers assure us they’re looking into this problem ahead of next year’s show. For the sixth year in a row, NZCB Auckland held a stand at the show to reach a nationwide audience, building the NZCB brand and help people in the market for a local builder. The decision to go for a ‘minimalist’ look rather than the ‘versatile garage’ of previous years proved a good one. It was much easier to set up and break down, which was good news for the crew involved in the event – and it was a big one! The five-day event required 112 ‘people hours’!

When Joe Hede, former ITAB Tutor at Unitec and former NZCB Auckland Committee member, received a shocking health diagnosis, the burley builder was stopped in his tracks. Hospital stays, chemotherapy and other treatment meant many of the projects Joe and his wife Lyn were working on at home were put on hold while Joe faced treatment and recuperation. So, one beautiful Saturday morning, the Auckland committee embarked on a special mission. They headed to Joe and Lyn’s home and lined and finished the inside of their double garage. Then over lunch (thank you Lyn – most unexpected), a Certificate of Appreciation was presented to Joe, thanking him for all his hard work on the Auckland committee.

NZCB Auckland President Patrick Donoghue and the Committee presenting Joe Hede with his certificate of appreciation for all his efforts and commitments over the years.

AROUND THE REGIONS —

NZCB Auckland Committee members Nick Farrelly and Peter Headland.

NZCB Auckland Committee member Grant Boylan and Joe Hede.

NZCB Auckland President Patrick Donoghue presenting Phill Haines with his recognition award.

NZCB Auckland President Patrick Donoghue presenting Garry Thompson with his recognition award.

And the award goes to…. In recognition of outstanding contribution to NZCB, we’d like to recognise three of our Auckland members who were unable to attend and receive their awards at this year’s Annual General Meeting at the NZCB conference and expo. The first is Joe Hede (pictured on page 6) who’s considered a legendary Unitec ITAB tutor and former member of the NZCB Auckland Committee. Joe joined NZCB in 2006.

NZCB Auckland Committee member Chris Boyle.

Next up is the recently retired Phill Haines, who joined NZCB in January 1999 and has always been a supporter of NZCB events, attending all 20 of our conferences! The last (but not least) to receive a Certificate of Appreciation is Garry Thompson, who joined NZCB in September 1999, has trained a number of ITAB Apprentices and been active on the local committee over the years.

AROUND THE REGIONS —

The Best BUILDNELSON Expo Yet! September NZCB Nelson hosted their by annual event BUILDNELSON Expo. This year’s Expo was the best yet with over 50 Exhibitors and more than 250 building professionals through the doors – the place was buzzing! The café area provided a place for connection and networking and everyone enjoyed the variety of exhibitors. A great time had by all. Thank you to our sponsors ITM, Placemakers, Carters and Mitre 10 Mega for their time and contribution towards making this event the best BUILDNELSON Expo yet.

NZCB Nelson President David Gunter and the MC for the night Murray Leaning from Mitre 10 Mega Nelson

Credit to Taranaki Committee for Tongan Relief Funds In our last issue we reported on the $1,000.00 donation raised earlier this year for Tongan relief after cyclone Gita. This donation was made by Taranaki, not Wellington as reported. Apologies to Taranaki for this error. Pictured on the right is NZCB Taranaki Vice President Brad Gibbons presenting NZCB Member Veni Uhila with a cheque to take with him to Tonga to help with the post-cyclone cleanup.

AROUND THE REGIONS —

Canterbury Quiz Night and Fundraiser Realising that a social outing could also be made into a fund-raising opportunity, the Canterbury region recently ran a Quiz Night at a local bar/restaurant. After all, everyone needs to eat.

NZCB Canterbury President Richard Poff and the Canterbury Men’s Centre Service Manager, Karl Belcher.

Our chosen charity was again ‘The Canterbury Men’s Centre’, recognising both their struggle for funding, and the work they do in helping guys in Christchurch sort out whatever is bothering them. It seems that our timing was spot-on. The following words come from Karl Belcher, Service Manager at the Centre. “The Dads’ Group is a new initiative between The Canterbury Men’s Centre, Plunket, and the Father and Child Trust. We had some community feedback that highlighted the importance of fatherhood and lack of support, especially for new and expecting fathers. So, we created this group, and it has been running for the last three months. The group meets the first and third Saturday of the month and is open to all dads. It is a safe place where people can share their experiences and get some support and advice from other like-minded dads. The Men’s Centre also offers free counselling to dads who may need some extra support and are struggling to adjust to the new roles or those that may be going through a separation and having access issues. The funding you have raised will go towards maintaining the running costs of this group for the next three to six months and also fund some dads for counselling who need that extra support. A huge thank you from the Canterbury Men’s Centre for all the hard work and your generosity.”

Thanks to the support of some very generous sponsors – Hamptons ITM, Noel Leeming Commercial, Ray White Papanui, and Dri-Stud – and some enthusiastic and generous members, partners, and friends, we have donated the sum of $4,050.80 to the Men’s Centre.

AROUND THE REGIONS —

Shane Ririnui Business Development Manager – North Island

Another Year Past As I’m driving through the regions in the final months of the year, it felt right to ask: was 2018 a successful year for the Association? What did we do exactly? The memories and successes flooded in. We celebrated a 20-year birthday with another well-run conference, held another fantastic Apprentice Challenge circuit with Matt Hatchard crowned the winner, introduced an educational vehicle known as BTP (Building Trade Professionals) and membership numbers are still growing by the day.

NZCB Members at the Waikato Golf day.

A whole host of events were held in our regions including golf day fundraisers, home shows, AMP shows, quiz nights, LBP days, Bowler Ramas, performance car racing…. and more! Looking back, it’s pretty clear our association achieved greatness in 2018. How about you? The summer break is an ideal time to ask yourself how you did as an individual and in your business. Did you achieve all that you wanted to, what worked and why? What didn’t work

and what changes can you make? It’s also the perfect time to start planning and setting goals for 2019 – just make sure they’re achievable. I wish everybody a Meri Kirihimete (Merry Christmas) and a happy New Year. Keep safe over the festive season and I look forward to seeing you fit and feeling energised for 2019. Ka kite.

AROUND THE REGIONS —

Nick Matthews Business Development Manager – South Island

Done and Dusted…! I know, I say it every year, where did the year go…? Hopefully for you and your business it’s been a successful one, enjoying what has been for most builders, a busy 12 months. There’s no sign that 2019 will ease up for a lot of you, so having downtime over Christmas is vital to unwind, de-stress and refocus for the new year. At National Support Office we’re always looking for ways to improve our service to members. As a trial for 2019, I spent some extended time in Golden Bay and North Canterbury visiting members on site, shouting smoko and having a yarn! This proved to be a worthwhile exercise, gaining insight into what are the local issues effecting builders and how as an Association we can assist. Keep an eye out for 2019 dates and times of national or regional events, as I’m keen to catch up with those members who don’t come to these events but want a visit while I’m in the region. Sadly, at NSO we are saying farewell to our Membership Services Manager, Eve Cooper who is moving to Wellington over the Christmas period. Eve, you will be missed but I wish you and your husband Rob the best of luck. Thanks for your friendship and the support over the years.

Nick presenting in Nelson at the BTP Workshop.

It was great to have my fellow NZCB staff members Jason McClintock – Operations Manager and Shane Ririnui – Business Development Manager (North Island) join me for the Building Trade Professional workshops in October. Both Shane and Jason enjoyed some good ol’ fashioned South Island hospitality, while passing on valuable content during the BTP workshop – Maintaining Profit through Project Management. I enjoyed hosting both gentleman and even found time to show Shane the mecca that is Bluff, the weather was perfect as usual. Membership in the South Canterbury town of Ashburton is on the up! To recognise this, local President Dan Gallagher hosted a trade evening on 20 November at the Ashburton Club and MSA. Supported by NZCB National Partner, Noel Leeming’s Nick Mooney presented the exclusive benefits and purchasing discounts available to our members. I updated members on contracts, Redi insurances, HALO benefits and a summary of the latest BTP workshop content.

A perfect sunny day in Bluff...

Happy holidays one and all, I know I am certainly looking forward to them…. Oh wait, who won the NZCB vs RMBA Carpentry Quiz night in Dunedin…? NZCB went down by two points…rigged I say. Merry Christmas everyone. See you in the New Year.

NZCB NEWS —

Halo Guarantee Frequently Asked Questions � Downloaded a contract from the NZCB website?

� Building a spec house for yourself with no contract?

There is no need to email or post through a hard copy of the application.

� Not sure when to email in an application? If you haven’t downloaded a contract from the NZCB website then best to email through an application to halo@bwrs.co.nz at the time the building work starts, especially if your client has paid a deposit.

� Not ready for an online application to be processed yet? Reply to the automated confirmation email advising when you would like it processed.

� Online application missing information? Email the information requested to: halo@bwrs.co.nz as soon as possible to avoid delays in getting cover in place.

Email through an application so any purchaser during the build will automatically be covered for their deposit.

� Which Certificate of Practical Completion (CPC) do I use? Use the pre-printed CPC that is sent out BUT make sure you check ALL details are correct first.

� Contract completed and ownership changed on completion? Send through a CPC and Transfer Request Form together to avoid a transfer fee.

� Got a query regarding an existing contract? Quote the policy number to speed up your request.

� Where can I find Halo documentation such as applications or premium charts? Log in to the ToolShed on the NZCB website for all things Halo related.

� My contract is cost plus margin – do you need a contract price estimate? Yes, as this is what the premium will be based on.

Please note that BrokerWeb Risk Service will be closed from Friday 21st December and reopen on Monday 7th January 2019. For urgent Halo enquiries please phone 021 567 795. The Halo application inbox (halo@bwrs.co.nz) will be monitored from time to time over this period.

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

NZCB NEWS —

CB’ S

RRED

PREFE

ANCE IN S U R E R S ! BROK

Finding the Best Deal for Your Insurance We are now collecting information with your Halo application that is transferred to us when you download your contract documents. If you have ticked the box that you would like a Contract Works quote, we will automatically contact you to discuss this. As Insurance Brokers, we will not only look to find the best deal for your Insurances, we will also advocate for you in the event of a claim. To you, this means you will have your personal Insurance broker that you can contact with any query whether it be to arrange a new policy or just to discuss the what ifs… You will also have access to our personalised Claims service which means that you aren’t going to get a different person every time you call. Our claims Administrator, Matt, will ensure your claim is processed smoothly and that you receive all of your entitlements and benefits under the policy.

taking advantage of the free review which could result in saving a significant amount of money for you so make a note to contact us around a month before the due date.

Over the Holiday period: Remember to take any tools and equipment back to your lock up depot rather than store on building sites. Ensure that alarms are set where able to and regular site checks are carried out.

Be safe.

The team at Brokerweb Risk Services can provide you with a free review including the special REDi terms. It doesn’t cost anything to review your current Insurance programme. The team at Brokerweb Risk Services are more than happy to provide you with a free review including the special REDi terms as a comparison to what you are currently paying for. This does need to be done when your Insurances are due. It is well worth

The REDi Insurance Team will be available over the Christmas period on 0800 644 444 should something go wrong or if you require Insurance for the purchase of your new toys.

It is recommended that you discuss your individual situation with your Insurance Broker. Your REDi Builders’ Insurance is administered by BrokerWeb Risk Services Ltd. For a free review of your existing portfolio, you can call Brokerweb Risk Services on 0800 644 444.

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IN THE KNOW —

Keeping Employee Information and Personal Files We are sometimes asked questions about how long employee information and personal files should be held for. This is a simple question but the answer is not so simple. This is because there are different legislative requirements depending on the specific information you are holding. Under the Employment Relations Act, the Minimum Wage Act and the Holidays Act, you are required to keep time, wage, leave and other employment records for a minimum of six years.

IRD requirements dictate that you keep all financial/ account records, including all wage, PAYE and KiwiSaver records, for at least seven years. Under the Privacy Act, you must not keep personal information (being any information about an identifiable individual) for longer than is required for the purposes for which it may be lawfully used. If you are undertaking any health and safety health monitoring under the Health and Safety at Work (General Risk and Workplace Management) Regulations 2016, the requirements are: • For monitoring undertaken to detect asbestos-related disease, you must retain the records for 40 years; • For all other health monitoring, you must retain the records for 30 years. Health monitoring is any monitoring of a person to identify changes in his or health status because of exposure to certain hazards arising from the conduct of your business. Worksafe has issued a fact sheet about health monitoring. This is available on Worksafe’s website (worksafe.govt.nz). In summary, apart from any health monitoring records, we recommend you retain personal files and associated records to meet the IRD requirement (i.e. at least seven years) unless there is some ongoing privacy related need to retain them for longer.

Danny Jacobson and Trudy Marshall are Partners at Employment Lawyers Tauranga and they specialise exclusively in employment law. They operate our Employment Helpline for NZCB members: Phone 07 928 0529. They have also previously produced a Guide for Employers in the Construction Industry which NZCB can send out to any members on request. (The above is by its nature general, and is not intended to be a substitute for legal advice.)

In 2018, the Association’s Building Trade Professional Workshops focused on maintaining margins. In our first Workshop for 2019 ‘Builder to Business Owner’ we build on the theme of margins and have joined forces with Andy Burrows – The Trades Coach. In this Workshop we will be looking at business structure, budget monitoring in the field, back costing and cash flow, looking at areas where builders might be losing small increments of margin. Imagine your business is a bucket and in the bucket is your annualised profit – does your bucket have holes which are leaking small amounts of profit without you knowing? Bring your front-line staff to discover how they can work with you, the business owner, to ensure a more profitable business.

ALL WORKSHOPS 5PM NIBBLES | 5:30PM START CITY

DATE

VENUE

Hamilton

Mon 4 February

Hamilton Workingmen’s Club, The Pavilion

Tauranga

Tue 5 February

ASB Baypark Arena, Suite 1

Auckland North

Mon 11 February

North Shore Golf Club

Auckland Central

Tue 12 February

Remuera Club

Whangarei

Wed 13 February

North Tec, ILC Theatre D340

Auckland West

Tue 19 February

Glen Eden RSA – NEW

Wellington

Mon 25 February

Petone Workingmen’s Club, Anzac Lounge – NEW

Nelson

Tue 26 February

Trailways Hotel, Riviera Room – NEW

Christchurch

Wed 27 February

Hinton’s Vineyard, Tasting Room

Dunedin

Thu 28 February

Edgar Centre, Harbour View

Andy Burrows is a National Partner to New Zealand Certified Builders Association

NZCB NEWS —

Building Compliance Get it right the first time! Wrapping your head around building compliance paperwork can be a little daunting but fear not, we are here to help! Read on to understand what documentation should be in place when undertaking residential building work (if you are the main contractor). NZCB has put together a Step by Step Builders’ Checklist which covers not only compliance but other useful tick-box items to assist you with a smooth sailing project. This can be downloaded from the members ToolShed, under Building Compliance.

Before building works begins... 1. First meeting – Handover a Checklist This checklist is different from the above because, it has been prepared by the Ministry (MBIE) and includes information on how the building project will be structured and managed, e.g. having a written contract, dispute resolution etc. Print the Checklist and handover to your client. 2. At quote/tender time – Handover a Disclosure Statement The Disclosure Statement has also been prepared by the Ministry and its intent is to inform your client about your business, site contact, intended insurances, guarantees and warranties. Complete a Disclosure Statement and hand it over to your client. 3. Awarded the job – Sign a building contract & apply for the Halo 10 Year Guarantee Always sign the contract and guarantee with your client before building work begins. NZCB has a suite of contracts available to suit your project specific needs. These can be completed online or by requesting a hardcopy of the contract be posted to you. The NZCB board has adopted a policy that requires all Business members to take out a Halo policy for all residential works $30,000 inc GST or more. If you complete your contract online and tick the right boxes it will automatically send information through to BrokerWeb Risk Services to start the guarantee process. If you are ordering a hard copy contract don’t forget to order or download the Halo application.

During The Build 4. Variations All variations should be captured in writing. A notice of variation is used to advise your client of a change to the original scope of work, it could be: • a fixed cost or credit • a non fixed cost • or an advisory note only 5. Tax Invoice/Payment Claim Invoicing is a big part of your day to day business, there are six things to remember when producing a payment claim

so that if a client disputes the claim, you are still in a good position to receive payment. Unsure of the six things? Have a look on the members ToolShed under Building Compliance.

After building work finishes We recommend you collate all the below information and present it to your client in the form of a ‘New Home Pack’. Don’t forget to handover their keys too! 6. Product & service warranties Gather up and hand over product warranties on every component or material used for the project. Concentrate on those which are accessible by the client. Put the pressure on your suppliers and subtrades to supply this information. We’ve also teamed up with ProductSpec so you can search an online library of products on the members ToolShed, under ProductSpec. 7. Maintenance Schedule Give your client any information on product maintenance to ensure the durability of products can be maintained. Concentrate on those which are accessible by the client. Put the pressure on your suppliers and subtrades to supply this information. You may also find this information on the BRANZ website www.branz.co.nz under their Web Resources. 8. Insurance documentation Give your client a copy of any current insurance policies you hold for the building work completed under the contract (not including policies that expire before the work is completed). Contact your insurance provider for the relevant wording or policy if you do not already have it on hand. 9. 12-Month Defects Period A mandatory twelve month defect repair period is placed on all residential work from the date the building work is complete. Your client has 12 months to advise you in writing, of any defect. The Ministry has produced a guidance document on acceptable levels of workmanship and tolerances to help you and your client determine what is and what is not defective building work , this can be found on their website www.building.govt.nz.

A more detailed breakdown of the above information can be found on the members ToolShed at any time. If you have further questions or find yourself a little confused please don’t hesitate to give us a call on 0800 237 843.

TECH TIPS —

Upping NZCB’s Digital Presence NZCB’s goal has always been for the homeowner to choose an NZCB approved member for their next build or renovation. Over the last few years, NZCB has invested in TV and print media to build awareness of NZCB members, the Halo guarantee and to ensure that homeowners can build with ‘real peace of mind’. In 2018, we decided to shift our main focus to the digital space to speak to this homeowner audience and, in August 2018, we launched the NZCB digital strategy. Digital channels offer a huge amount of opportunity for NZCB to connect with the homeowner audience – and the real kicker is that as part of our new strategy we’re able to connect with the right audience at the right time. A lot of businesses approach marketing by pushing their messaging out to as many people as possible, whenever they can, wherever they can – without a lot of consideration for who’s listening. As part of our strategy development we identified that at any one time, there are a potential 880,000 people in New Zealand who are potentially interested in a new build or home renovation. So, we’re focusing on speaking to these people through targeted messaging to build brand awareness, trust and consideration.

So, how do we do this? The core of NZCB’s new digital strategy sits in social media. In August, we launched the new NZCB Facebook page and we have started using this channel to showcase the work of our members and build awareness with the NZCB Brand.

The great thing about Facebook is it allows us to target messaging to people based on their interests, so we are able to ensure that our content is showing up in the newsfeeds of the right people. We’re running video content into their Facebook newsfeeds (and a bit of Instagram), so when they check their Facebook first thing in the morning, or at lunch, or even before bed – and we identify that they’re in our potential audience – they’ll see an NZCB message. To compliment this, we are running the NZCB video ad across OnDemand television too. We are able to target this activity, so when someone we identify as part of this potential homeowner audience sits down to catch up on their favourite TV shows, we reach them there too. When our potential homeowner checks the news, they’ll see messaging from NZCB around articles that push thought leadership within our industry. We have also adopted a ‘Google search’ strategy, to ensure that when this audience starts to actively search for a builder, they will see NZCB at the top of their Google Search results.

We’re doing all this with the goal of directing this potential homeowner customer to the NZCB website to search for a builder. And we’re pleased to report that it’s going well so far!

1.1 million

impressions in 12 weeks

365,000

people reached in 12 weeks

260,000+

views of the NZCB TVC across all channels in 12 weeks

6,000+

Melanie Lee, Digital Strategist and part of the WAVE’s digital team.

WAVE Creative Communications Agency’s Digital Strategist Mel Lee is proud to report that in three months we’ve reached 350,000 people out of our potential 880,000 homeowner audience with targeted NZCB messaging.

Facebook page followers

66.5%

The NZCB TV ad has been viewed over 79,000 times on Facebook in 12 weeks – all by people with a demonstrated interest in building or renovating their home in New Zealand. And the real measure is that traffic to the NZCB website has increased significantly, with the volume of ‘find a builder’ searches increasing across the country. Of course, in order for this to be effective, it’s really important that we closely monitor the volume of messaging we’re putting out- we don’t want to spam people or overdo it (and that’s WAVE’s job!). There’s one other added benefit of focusing our efforts in this space, and that is that ‘traditional’ media is very expensive. Our previous TV activity has run in six-week blocks on TV, with prolonged periods off TV simply due to the sheer financial investment required. Digital and social media is significantly more cost-effective, so we’re able to run this activity all year round.

Website traffic up between August and October (compared to previous period)

“

So, with this in mind, there are a number of ways you can be involved: 1. Let us feature work you’re proud of on the NZCB Facebook page – share it in the NZCB members group or email it through to us at the NZCB office, so we can include it in our content planning. The more photos or videos you have, the better! 2. Make sure your builder profile on the NZCB website is updated and relevant, so that when you appear in the search results, your potential customer has what they need to contact you.

Grant says.... After a couple of months of planning we launched our new digital and social media strategy in late July. This strategy is focused on the building of the NZCB brand, including awareness and brand values. This work allows us to be significantly more targeted to our key markets – being our potential homeowner customers who are showing interest in building and also allows us to create ongoing enquiries to our members from potential customers. Due to the increased sophistication available in the online community, committing to this work in this environment significantly improves the efficiently and effectiveness. I am delighted that early results since we launched have been very encouraging but, as with all brand building, it is a long game and one that we are committed to in support of our members.”

3. And of course, if you see something from NZCB in your Facebook newsfeed, give it a like, a share or leave us a comment. This shift in our approach to marketing the NZCB brand is already making waves with the right people – and this is just the beginning!

Working together, to share your vision Whatâ&#x20AC;&#x2122;s your vision? Windows and doors that arrive when you need them? Everything fitting together perfectly? Maybe just knocking off early for a pie. We understand, and thatâ&#x20AC;&#x2122;s why we commit to working at your pace as part of your team to get the job done. Visit altuswindows.co.nz

ALT019/NZCB

Made exclusively by:

NZCB NEWS â&#x20AC;&#x201D;

midday NSO closes 21st December Friday

National Support Office Christmas Closure

NSO reopens 8: 3 Monday 14th Jan 0am uary

The NZCB NSO would like to wish you and your families a safe, happy and relaxing holiday season. We look forward to working with you all again in 2019. Online Building Contracts & Employment Agreements These will be accessible on the Members ToolShed over the Christmas period.

Fisher & Paykel | Stationery | Clothing Please have your orders in by midday on Monday 17th December so the office elves can package them up

and send them out before we take a summer break. Any clothing orders placed after the 10th December will not be processed until late January 2019.

Online Shop Closure The online shop will close at 11.00pm on Monday 17th December and reopen at 8.00am on Saturday 12th January 2019.

Coming Soon! REVERE Volume Two showcasing the amazing work and talent of our builder members. All enquiries to julie@nzcb.nz

HEALTH AND SAFETY —

Be Prepared As Kiwis, we know that natural disasters can strike at any time. We need to be ready for anything – whether it’s an earthquake, fire or an accident – and the first step to being prepared is a good emergency response plan. Being prepared will make your business more resilient, and better able to bounce back when the unexpected happens.

Get ready The first step is to make an emergency response plan. This should include: A list of your emergency equipment (such as First Aid kit, extinguishers, spill kit and when they were last tested) as well as where they are located Up-to-date fire and emergency training Emergency contact phone numbers Spill/leak/hazardous substances procedures checklists A list of people who have specific skills and responsibilities in an emergency, like Fire Wardens, and their contact details and the date they were last trained

If you use, store or make hazardous substances, you should also keep a hazardous substances manifest in a safe place. This should include a list of what the substances are, where they are stored and the maximum quantities likely to be present. Safety data sheets should be kept and preferably backed up on a removable storage device, such as a flash drive, and stored with other important information. This essential information should be kept secure in a location that is separate from your main workplace. If a natural disaster strikes, remember to keep up-todate with the latest Civil Defence information and where possible keep a record of any events that harm people, or damage property.

Emergency First Aid info Information on CPR A list of what’s in your Civil Defence kit and the location of the nearest Civil Defence assembly point A record of when your emergency plan was last tested

Once your plan is finished, all staff will need to be informed of what’s in it, who the people with special responsibilities are, and where the plan and essential emergency equipment are located. It’s a good idea to regularly remind staff of this information at Toolbox Talks or prestart meetings. Where possible, make sure everyone has emergency supplies, like a “Go bag”, which should be filled with water, food, First Aid kit and other emergency needs in case of a large-scale event. Emergency response trials should be conducted regularly, or when there has been a significant change in staff. For owners of buildings that require a Fire Evacuation Scheme, trial evacuations must occur at approved intervals. In case of a chemical/environmental emergency (like a diesel spill), you should store appropriate personal protective equipment (PPE), which is available for use if required. Make sure everyone is trained in the safe control of the chemicals you have on-site and the emergency procedures associated with their use.

Make sure everyone on site knows what to do in an emergency.

HEALTH AND SAFETY —

Site Safe is a not-for-profit, membership-based organisation that promotes, inspires and supports a culture of health and safety in New Zealand construction.

When Disaster Strikes Put People First: You should always know your headcount – how many of your team are on-site and need to be accounted for. If evacuation is required, take the register to the evacuation point so you can sign everyone off. Remember to check the sign in register to make sure visitors are also safe. You’ll also need to have a system in place for contacting your staff after an emergency, and their current emergency contact details. Earthquake: If an earthquake hits while you’re at work, remember to drop, cover and hold. Do not run outside and stay indoors where practical – remembering to keep away from windows and heavy furniture. If necessary, evacuate using a previously identified route. If possible, take bags, phones, wallets and emergency supplies. Afterwards, make sure to gather staff together in a safe place and establish what has happened to everyone. If the building is damaged, turn off the water, electricity and gas at the mains, if safe to do so, and conserve your water. Remember to be extra careful when re-entering buildings after an earthquake; stop, look and assess – and don’t take any risks. If you’re a business owner, listen to Civil Defence advice and when safe, make a careful external inspection of your building. If you see cracks, or have the slightest doubt about the safety of the building, get an expert report before going inside. Once you are cleared to enter the building, be extra vigilant as the contents of the building may have shifted, material may have fallen and there could be unexpected hazards. If you know there are chemicals or other dangerous materials, make sure to wear PPE and be very careful when going inside. Tsunami: If a tsunami happens while you’re at work and you could be affected, go to high ground immediately, using your planned route to a safe location. Go at least one kilometre inland or 35 metres above sea level, and if you’re in a vehicle, make sure to leave room for the people arriving behind you. Spill: If there’s a hazardous substance spill, raise the alarm and evacuate upwind if necessary. If safe to do so, put on PPE, identify the substance and close off the source of the spill (e.g. secure tops or lids). If there are flammable substances present, remove any sources of ignition. Use your spill kit if it’s appropriate and safe to do so. If possible, prevent the chemical from entering drains or leaving the site. Remember to refer to the safety data sheet – or call an approved handler or specialist for advice if necessary.

Remember to take the sign in register so you can keep track of who is on site.

You may need to call emergency services and advise the local council. You will also need to dispose of waste safely, as set out in the safety data sheet. Fire: If a fire breaks out, raise the alarm, evacuate and activate any emergency shut down systems. If it’s a small fire and it’s safe to do so, use your fire extinguisher – if it’s a large fire, don’t try to extinguish it – retreat to a safe distance and call 111. Either way, it’s important you don’t endanger yourself. Remember not to use water on petroleum or electrical fires.

For more help with emergency planning, download the free Emergency Response Plan template from www.sitesafe.org.nz, or ask to speak to one of Site Safe’s expert health and safety advisors.

NEXT GENERATION â&#x20AC;&#x201D;

ITAB Apprentice Completions Nelson Marlborough Institute of Technology (NMIT) Simon Buschl

Chris Barnett Builders

Adam Bisdee

Pete Alfeld

Luke Cotter

Whiteridge Construction

Thomas Ashley

Tasman Homes (Nelson) Limited

Otago Polytechnic Jordan Te Amo

Derek Lester Building

Samuel Paris

Gray Brothers Builders

Peter Burgess

Central Blue Limited

Jeffrey Wilson Bell G J Gardner Homes (Otago)

UNITEC Institute of Technology Hwa Chan

JWL Construction Services Limited

Bin Huo

Aika House Limited

Northtec â&#x20AC;&#x201C; Future Trades Aiden Ludlow

Arlo Group

Matt Hatchard

Fox Build Limited

Richard Rihari-Allen

Divine Construction Limited

Matt Hatchard our 2018 NZCB Apprentice Challenge Winner and now a completed ITAB Apprentice.

NZCB NEWS — Grant Florence Chief Executive

Homeowner Survey Results Every two years New Zealand Certified Builders Building start times: Association have a survey completed of people • Delays in start times of more than four months (from who have used a builder in the last few years. engaging a builder) are becoming more common This is conducted by an independent survey (over 25%). company and the people contacted are random • Homeowners’ unhappiness with delayed start times and therefore not necessarily homeowners who increases as it extends with 65% being unhappy if have had a new home, or an alteration done by start times are delayed by between six and 12 months. a member of NZCB. As always there are some very interesting points and feedback that come out of this survey, most of which are valuable for members of NZCB. These points include:

TIP: Start times are often due to factors outside of the builders control, but there is a need to communicate, communicate, communicate with your clients if there are delays.

Choosing a builder:

Contracts/disclosures:

• Recommendations from family and friends is still by far the most common method of choosing a builder (over 60%). TIP: It’s a great idea to ask your current satisfied clients whether they have any friends or family that are considering building and if so, can they give you their contact details? • Kiwis in the 40–64 years age bracket are most likely to be referred to a builder by a designer or architect (but still only 8%). TIP: Building relationships with designers and architects is always well worth your time.

• Disappointingly, around 50% of those surveyed did not have a written contract. TIP: Use the fact that you are using a contract as a selling point of your professionalism.

Attributes valued in a builder:

• Checklists and disclosures, although seen as important by homeowners, are still only received by them around 20% of the time. TIP: Again, ask your potential client if they have received these from other builders. If no, reinforce the fact that they are the law and that you as a builder, by using them, are showing your professionalism and protecting your reputation.

Building Guarantees:

• For the third survey in a row “Reputation for Quality” (#1) and “Professionalism and Communication” (#2) are the two top rated attributes sought by homeowners of their builder. TIP: Great things to mention in your own advertising or discussions with potential clients. • Price and a fixed quote are the lowest attributes. • Membership of a building trade association (such as NZCB) is rated 8 out of 10 in importance. TIP: Make sure you have the correct NZCB branding in place. • Kiwis are becoming more aware of their builders’ trade qualifications and this has increased over the last two years.

• Only 31% of New Zealanders had a guarantee in place with their builder in their last project. • New Zealanders considered the following to be the three most important aspects of any building guarantee: – Comprehensive coverage – Financial strength – Ease of application TIP: The NZCB exclusive Halo 10 year Residential Guarantee insurance meets all these aspects. We have made use of this research in press releases to the media and also in our advocacy work with the building regulators (MBIE) and central government politicians. Make sure you make use of it also.

IN THE KNOW —

Your One-Page Action Plan for 2019 A couple of months ago, I met with a prospective client (who has since hired me) to talk about their business and why it wasn’t going as well as it could. They sent me their business plan ahead of time so I could familiarise myself with their situation. Their plan was very comprehensive and, while there was nothing too much wrong with it, the plan was long and was obviously produced from a corporate template of some description. (They hadn’t completed a couple of sections fully as they didn’t know what they meant.) When I asked them how often they referred to the plan, they admitted that since completing it they had kind of forgotten about it. In my opinion it is not necessary to write a long plan. Better to keep it short and focused on the critical things that need to be done in order to move the business forward, or address critical problems. Too many people focus on producing a nice looking document and miss the main point of planning. Fine if you need to put something in front of the bank manager, but for internal consumption, less is definitely more.

1. Plan For Action

tegic ACTION Keep your plan to one page. Think “stra t are the Wha plan”, not strategic development plan. to move week next do to specific actions that you need ard? an essential project forw

Planning should be about setting out the steps needed to move you from where you now to where you want/ need to be. A coach that I have used in helping me with my business, Taki Moore suggested the following five principles when talking business planning:

2. Call a Time-Out

ther to reset Make a time each week to take a short brea week to next the for ed need s task your mind, list out the to paper. this mit com and ard forw ct proje nt move a curre

3. Review For wards

the past year Look at where you have been tracking for . Is this year next the for ard forw that te and extrapola taking even or flat, where you want to be? Is the track just you in the wrong direction?

Contact me and I will help you put an effective, action plan together for 2019 that will help focus your efforts and achieve great results. Email me at andy@tradescoach.co.nz or phone my office on 09 912 1901.

4. Plan Backwards

t, “start with As Stephen Covey says in his second habi then plan and e gam end the end in mind”. Imagine the achieve to ired requ n actio g edin the immediately prec last one, the re befo ired requ n actio the Then . that state e at arriv you then the one before that, and so on until out ped map path a have then your current situation. You time from te devia to need you if even , before you to follow to time.

5. Enter The Four Altitudes

, 10,000ft In flying terms, I mean 30,000ft, 20,000ft to three lates trans this s term ning plan In ay. and runw cts proje terly quar to five year vision, 12-month goals, ents elem brief have to is and weekly actions. The aim ns are aligned of each in your one-page plan so that actio to longer-term outcomes.

NEXT GENERATION —

A New Beginning

Brian Dillon Chairman AST Trust

As we approach the end of the year, I am penning what will possibly be one of my last InHouse articles as chair of the AST. In 2019 an ITAB Advisory will be established, which will be a joining up of the activities of ITAB and AST. AST had its beginnings in the Far North nearly 20 years ago, where an apprentice was sleeping in his car because he couldn’t afford accommodation while at block course. Over the following two decades, hardship grants have provided financial and other support to dozens of apprentices, and for many this support enables them to carry on their training. For others the AST’s provision of Excellence Awards has rewarded an aspect of their training that set them apart from their peers, and the AST has been a key sponsor of the Carpentry Apprentice Challenge national finals. In an economy that continues to be buoyant there are still hardships, and it’s pleasing to be part of the AST as we consider and approve funds to offset unpaid time at block courses, or travel and accommodation needs. These and other key activities of the trust will continue under the ITAB Advisory, as will many of the initiatives that enable the trusts activities to be done.

On 2 November, Phil Grimmer (Toi Ohomai Carpentry Manager) and I joined Grant and Shane from NZCB NSO as part of the annual Taupō Certified Golf day. The Taupō guys put on some great weather, an excellent event, and in an outcome that was completely above board, we managed to burgle third place. AST has long enjoyed some very good support from the Taupō association, and it was great to be involved them again this year. We are watching with interest the outcome of the government’s review of the Polytechnic sector, with an announcement due in December. Undoubtedly this will result in some changes, but as a sector and industry we are used to that, and we will continue to strive for the best training and support that ensures a healthy future for construction in New Zealand.

TECH TIPS —

Buy Your Business the Best Present of All

This Tech Tip was supplied by FREE UP. Call Anna Brooks on 021 0839 6910 to get a FREE 30 minute consultation to choose the right job management app for your business. Visit www.freeup.kiwi

There are a number of job management apps to choose from, so it’s important to choose the one which suits your business best:

This Christmas, treat your business and yourself to a unique present – one which can make your 2019 more efficient, more profitable and have less paperwork. For less than $3 a day, an average-size building business – say three team members and one admin person – can really benefit from job administration app. Using one will make many areas of your business as well as individual jobs so much easier to run, including supplier bills, generating estimates and invoices, back-costing, timesheets and more.

✱ NextMinute – manage your building jobs,

schedules, timesheets, quotes and invoices all in one place.

✱ Tradify – perfect for tech novices, this simple

app helps you manage jobs, timesheets, quotes and invoices.

This tech is simple to use on a smartphone, tablet and computer – and because it’s Cloud-based, information instantly loads back to your office so there’s no need for any paper or double data entry. Apps can also link to supplier price books as well as your accounting software, which makes time-consuming admin much easier, faster and more accurate.

✱ RaveBuild – enables builders, contractors

Start your 2019 with a better way to manage jobs – it will be a New Year’s revelation!

✱ BuilderTrend – the ‘Big Daddy’ of apps,

and clients to stay connected and easily communicate about their project.

✱ Co-construct – includes special features,

like a portal for your customer to keep up-to-date with progress. with the widest range of features.

IN THE KNOW — Grant Florence Chief Executive

10 Signs of a Good Builder Although we are all very busy with many of our order books fill well into the third and fourth quarters of 2019, it is worthwhile continually thinking on actions we can take now, to make sure that we are well placed when the ‘sales or enquiry’ phone call or emails stop or slow down. The top “10 Signs of a Good Builder” article that was published by Stuff some time ago is still relevant and worth having a read of: 1. They are busy

6. Answers your calls

If a builder has no work on, you should ask yourself why. Sure, they may be new in town, or just starting a solo business, but there may also be a more ominous reason. Be cautious if you make contact with a builder and they say they can start straight away. A good builder will have a good reputation and clients will be lining up for their services.

Most builders will answer their phone and be very professional the first time you call. But the real test is whether they answer your calls when they know you’re chasing them for something. If the builder doesn’t answer your call, and doesn’t call back within a day, it shows either a lack of respect, a lack of customer service focus, a lack of organisation or simply that they’re just not that keen to do your job.

2. ...but not too busy The jobs the builder is currently working on should take priority over new work and if there are others already waiting, you will go to the end of the queue. Fair enough, but you can expect that most of those jobs will run over time and your project could end up getting pushed back by months. Beware the overworked builder who may start your job and then disappear for weeks/months. Be sure to ask the builder how many jobs they have on, and how they are managing with the workload before committing.

3. Is on time Watch the clock when your meet with your builder – it’s the most basic measure of their time management skills. The builder who arrives at your house at the organised time is the builder most likely to start on time and complete the work to deadline. Take tardiness as an early warning sign.

4. Is not a random If you can find a builder recommended by someone you respect you can be confident they are trustworthy and competent. Plus, you can inspect their workmanship before you decide and get a feel for how they worked to budget and timescales. Ask around your friends and family or put up a Facebook post – but avoid just going for friends of friends. What you’re looking for is someone who has had work done and is willing to advocate for the builder.

Either way, it’s a good sign you should look somewhere else.

7. The five minute test When you get the builder around to quote on your house, try changing the subject away from construction and see if they can hold a general conversation for five minutes. This will give you a good sense of whether you’re compatible with the builder and will be comfortable having them in your home.

8. Tells it to you straight If your budget won’t cover it, your time fames are too short or your ideas are unrealistic, you need your builder to tell it to you straight, right from the start. Some builders will tell you what you want to hear just to get the job and this can lead to major issues down the line. During your first meeting tell the builder your vision, budget and deadline – if he just says ‘yes, yes, yes’, he’s probably lying or not experienced enough to know that you’re dreaming.

9. Is an ideas man Most builders can follow a set of blueprints (if they can’t you’re in big trouble) – but the good ones can think in colours that aren’t just black and white. Do a ‘walk around’ your project with the builder and if they’re full of good ideas and practical advice they’re a keeper.

10. Has a brand

5. Takes his shoes off

The builder that invests in a brand is working to build a quality business and will be more likely to deliver a positive customer experience and have pride in their work. Look for a website, business cards, work shirts and vehicles. You can’t always judge a book by its cover, but then again you have to dress the part to play the part.

A builder who takes his shoes off unprompted before walking into your house is more likely to show care for your property. It’s a sign that they respect that this is your home, not just a worksite.

IN THE KNOW —

My Top 5 Tips on Pricing a Renovation We are a nation of renovators. Kiwis just love their homes, we love owning them and we love tinkering with them. That being the case it was no surprise when I sent out a recent survey, that most of you complete renovation work. Pricing a renovation is HARD. It isn’t clean like pricing a new build. You must think about all the things that could go wrong, that haven’t been detailed on the plans, that could potentially change. Other than owning x-ray goggles and having a crystal ball, there is no way to know for sure what the financial outcome of a renovation is likely to be. That being the case, I have some tips.

1 Don’t use a percentage for your preliminary and general items

P&Gs are the associated costs with doing a job, like Health and Safety and on site portaloos and their cleaning. I don’t generally recommend percentages for this category in any case, but it is especially important not to for renovations. P&G lists for reno jobs tend to be more extensive as you have to consider all the requirements for working on an existing building, like protecting the existing part of the house or ensuring health and safety when people are living there while you work. Often the $$ value of the project is also less than what a new build would be, but the P&G requirements remain the same or even more on a renovation.

2 Provide a methodology statement Different builders will approach a reno in different ways and that is fine, however providing a methodology statement can help in a few ways. Firstly, it sets an expectation as to how the project is going to run. That saves on the questions and calls wondering what is happening and when. Secondly it assists when you need to claim a variation. If you have already outlined how you are planning on working and something out of your control happens, such as unforeseen siteworks, then the variation you claim is less likely to be a surprise to your client.

3 Include a tender letter with your pricing A tender letter is just a written formal offer to a client. It includes how much, and all your tags and clarifications. It adds a layer of professionalism to your submission, which may help set you apart from the rest as it creates trust. Your tags and clarifications will not only outline your sums and what they include and don’t include, but also clarify unknowns that are not covered in the pricing. Make sure you also pull through any relevant tags and clarifications from your sub-contractor quotes!

4 Outline your labour rates and how variations will be managed on your tender letter

There is nothing worse than arguing with a client over a VO they need to hurry up and approve so the job can keep moving forward. Advise what the hourly rates on variations will be, and that the variations will include processing/admin fees and a margin. Don’t process variations either negative or positive without an admin fee!

5 Run ironclad timesheets onsite If there is ever a time labour will run over, it is on a renovation. Make sure the team uses the timesheets every single day and that they not only detail how long, but also what tasks were being completed. Collect these and back cost them against the job every single week. It is an extraordinarily powerful tool to have this info and will help keep the team on task, pick up on training issues, and of course get any extra variations you might otherwise have missed. By Victoria Harrison, Director Red QS Red QS is primarily the builder’s QS, providing bespoke quantity surveying services to builders and sub trades, large and small, all across New Zealand. The team has an exceptional level of skill across the board, and our services are available on an as when needed basis! Sassy and fresh, creative and clever, we are proud to be part of the Construction Industry in New Zealand. See www.redgroup.nz for further information.

IN THE KNOW —

If You Make a Mistake in a Building Contract, Can You Fix It Up Later? By Geoff Hardy of Auckland law firm Martelli McKegg It is reasonably common to make mistakes when completing a building contract. For example, sometimes in a fixed price contract the scope of work incorrectly lists something that should have been tagged out, so the builder is obliged to do it, for no extra payment. Or in a cost and margin contract the scope of work may omit to list something that should have been included, which means the owners are free to get someone else to do it. You may have been persuaded by a debt collector to attach terms and conditions of trade to your quote, which turn out to be totally at odds with what the building contract says. Or you may have done a side deal that never got recorded in the contract. But probably the costliest mistake is if you understate the contract price or the estimate, or you insert an amount or a rate thinking it is GST exclusive when in fact the contract says it is GST inclusive. When you discover the mistake, your clients might be understanding enough to let you change the contract. But I have seen many cases where they haven’t, particularly when the change is going to cost them a lot more money. After all, when they committed to the project they might have exhausted all their sources of finance, and it might not have occurred to them that the builder had made a blunder when writing up the terms of the contract. Consequently, even if they accept there was a mistake, they are likely to take the view that if anyone is going to suffer the financial pain then it ought to be the builder. And of course, if by the time you discover the mistake you are in dispute with your clients, they are likely to strenuously deny that there was any mistake at all. Where your clients aren’t willing to let you change the contract, can you do it anyway? The answer is, not easily. You can understand why. If everyone who later regretted the deal they had entered into, could simply argue that the contract doesn’t reflect their true intention and the terms ought to be changed, then no contract would ever be worth the paper it was written on. So very early on, the law adopted the approach that whatever the contract says is what you intended it to say, and it is up to you to read it carefully and get legal advice if necessary, to ensure that it does reflect your true intention. However, humans are not infallible, and there are some situations where the strict application of that rule would be unfair. So occasionally the rule is relaxed. Our law allowing you to correct mistakes in contracts goes back

a long way, but in 1977 Parliament decided to tidy it all up by passing the Contractual Mistakes Act which is now known as Part 2 Subpart 2 of the Contract and Commercial Law Act 2017. That Act allows any court or tribunal to make any order that it thinks is just, including an order modifying the contract or an order that the other party pays you compensation. That doesn’t mean that you can ask the Judge to annul your marriage on the grounds that you didn’t realise she would nag you incessantly and watch soap operas all day, nor does it allow you to reverse that $50,000 bet you put on the All Blacks when Namibia pulled off the upset of the century. It only applies when what you believed was the true situation, turns out not to have been true at all. Like when you thought your client had a resource consent to add another storey to the house – or in fact both of you thought that – but the High Court later rules that the resource consent was in breach of the unitary plan and is therefore revoked. Unfortunately for builders, the contractual mistakes legislation isn’t the get out of jail free card you might have thought. For a start, you have to apply to a court or tribunal – and that means significant costs, interminable delays, strenuous opposition by the other side, and no guarantee of success. Furthermore, the fact that you are the one who made the mistake counts against you. But most importantly, the Act says the court or tribunal can’t do anything for you if your mistake was a mistake about the interpretation of your contract. And if your contract doesn’t say what you thought it said, that is a mistake about its interpretation. For example, in a 2002

IN THE KNOW —

High Court decision (Clements v Singh) the Judge ruled that a mistaken belief that a contract price was exclusive of GST when in fact it was inclusive of GST, was a mistake about the interpretation of the contract, and the contractual mistakes legislation could not assist. All is not lost, however. There is another law called the “equitable doctrine of rectification of contract” which is not subject to the same limitations as the Contract and Commercial Law Act 2017, and it can assist when your mistake related to the interpretation of the contract. To get the contract corrected under the equitable doctrine, you have to prove that both parties had agreed on something – for example that the foundations would be done on a charge-up basis even though the rest of the build was subject to a fixed price – but when the contract was drawn up neither party realised that they had forgotten to record the charge-up arrangement. If the owners later deny that, one way the builder could prove it is to show that he invoiced for the foundation work on a charge-up basis and the owners paid those invoices with full knowledge and without any objection. The equitable doctrine won’t help you, however, where the written contract correctly records both parties’ understanding, even though that understanding was mistaken. For example, if the builder made a major miscalculation in the contract price which would end up requiring him to do the renovation at a substantial loss, but the contract correctly records the price that both parties had agreed on at the outset, even though they were ignorant of the mistake at the time. Or when you both thought the boundary pegs were in the correct position, but it turns out they weren’t. If in actual fact the contract doesn’t record what the parties had agreed on and you can use the equitable doctrine, you face similar disadvantages to those you face with the Contract and Commercial Law Act 2017 – you have to apply to a court or a tribunal, and it is a bit of a gamble. Rectification of the contract isn’t automatic, so if they think it would be unfair to the other party, they won’t grant it.

Fortunately, there is another way you can get some relief from the consequences of a contractual mistake, which isn’t subject to the same strict rules, and is quick and economical. The only hitch is that the other party to the contract must dispute your claim, and the loss it has caused you must be $15,000 or less. What you can do is apply to the Disputes Tribunal, which is our small claims court. It costs you very little to file a claim and the case gets disposed of within a few months. It doesn’t cost much in legal fees because at the hearing (which is quite informal) you argue your case yourself. Your lawyer can help you to put your claim together, but not to argue your case on the day.

If your client accepts there was a mistake in the contract, they are likely to take the view that if anyone is going to suffer financial pain then it ought to be the builder. The Disputes Tribunals do have power to resolve disputes relating to contracts. Not only can they order that one party pays a sum of money to another, but they can make changes to a contract. They can make those changes where a term of the contract is “harsh or unconscionable”, or a party was induced to enter into it by a mistake, or it doesn’t reflect their true agreement. So if you have become the victim of a mistake in a contract, don’t give up hope – get in touch with us, and find out what can be done.

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 MEDIA —

Construction Culture Needs Changing

New Zealand Hardware Journal 01 October 2018

HERE AND OVERSEAS it’s clear that construction is stressful, in good times and in bad. Australia has for some time recognised that suicide rates in the building industry are elevated compared to other industries even if only marginally higher than in farming and forestry. Australia’s well-established, national “MATES in Construction” support programme for example (see https;//matesinconstruction.org.au/) has it that 190 Australians working in the construction industry take their own lives each year. This side of the Tasman, in a recent scoping study (find it here: https://bit.ly/2zxiQYx), BRANZ also finds that the New Zealand construction industry has “the highest percentage of suicide for employed men of any industry in this country”. Poor culture in the industry is a key driver of this situation, says the report, with bullying and intolerance of diversity significant contributors to the poor mental health of construction workers. The BRANZ study also found that the boom-bust cycle of the industry was a significant contributing factor, with the boom cycle seen as the most stressful, due to pressure to deliver quickly and in quantity. Following on from this scoping study, Site Safe NZ and BRANZ will be leading a new, in-depth study to uncover the underlying trends behind the high number of suicides in the industry. The study aims to analyse the coroner’s findings of all suicides of construction workers from 2007 until 2017, some 339 cases, to better understand any common factors. It is expected the study’s initial results will be available early next year.

In terms of concrete steps actually being taken to mitigate this situation, we understand there is discussion about dialling the “MATES in Construction” support programme here. Already in train is the NZ Certified Builders’ wellness initiative which kicked off in January. In partnership with Employee Wellness Programme (EWP, see http://ewpservices.co.nz/) the scheme provides members with access to mental health support at times of stress. NZCB Chief Executive, Grant Florence, says: “Builders may feel the need to live up to a particular image that involves ‘toughing things out!

Australia has for some time recognised that suicide rates in the building industry are elevated compared to other industries even if only marginally higher than in farming and forestry. “Partnering with EWP means we can make it easy for our members to access support when they need it.” While the industry waits for other concrete resources to be put in place, the following resources may be useful to our readers: • Mental Health Foundation of NZ: Free call or text 1737 (mental health, depression, and anxiety counselling). • Lifeline New Zealand: 0800 543 354. • Suicide Crisis Helpline: 0508 828 865 (operates 12 noon to 12 midnight; for those in distress, or those concerned about the wellbeing of someone else).

IN THE MEDIA —

KiwiBuild Ramping Up Quickly, But Quietly

Thomas Coughlan 29 August 2018 Thomas Coughlan is a Newsroom reporter based in Wellington who writes on policy and economics.

The Opposition claims the Government’s KiwiBuild programme is flawed and risky, but its head tells Thomas Coughlan hundreds of homes are already being built and KiwiBuild is on track to hit its first year target of 1,000. Stephen Barclay, the head of the Government’s KiwiBuild unit told Newsroom “hundreds” of unannounced KiwiBuild homes are currently under construction by developers. The houses had not yet been announced as developers dictated the timing of announcements, because they handled the marketing for the individual homes, Barclay said. “There are hundreds of houses under construction now – we will be announcing them to the developers’ timetable – we don’t want to get ahead of them,” he said.

KiwiBuild stocktake Barclay was speaking to Newsroom a week after delivering a speech to the Affordable Housing Summit in which he revealed the unit had done deals with 14 of the 97 developers who had made expressions of interest in KiwiBuild. In that speech he said the unit had also rejected 13 proposals. That number has now increased to 24. Barclay said the most common grounds for refusal were houses not meeting the price thresholds or proposals from developers without a proven track record.

The Government needs to deliver 1,000 homes by 1 July 2019 to meet its first target, and 5,000 homes by 1 July 2020 to meet the second target. This leaves 59 developer proposals left to be considered by the unit. It is possible many of these will be declined as unit had prioritised the most credible of the 97 expressions of interest, Barclay said. The Government has announced 1,730 to 2,230 homes in one form or another. The first 30 KiwiBuild homes in Papakura will be delivered by the end of the year, and another 400 in Papakura will be delivered from 2019 onwards. The Government’s Unitec development, the first of many planned “large-scale” KiwiBuild developments will deliver roughly 900 to1,600 KiwiBuild homes to an undefined time frame, as part of a larger 3000 to 4000 home development. Barclay said are at least another 800 homes representing 14 deals with developers that have not yet been announced. These include the first KiwiBuild developments outside of Auckland, which will be built in Waikato, Taranaki, and the Queenstown lakes.

KiwiBuild or KiwiBuy? Barclay said in the speech last week it was important to show the unit had “momentum” going forward. The proposal has faced criticism for being unachievable.

KiwiBuild chief Stephen Barclay says “hundreds” of unannounced KiwiBuild homes are currently being built. Photo: John Sefton

Opposition housing spokesperson Judith Collins told Newsroom the developments would have occurred anyway and the project was simply sapping homes from the 30,000 that are currently being built each year. “It’s KiwiBuy – they’re buying the houses off developers,” Collins said. “The developments that would have happened anyway,” she said. Collins said developers had told her there was little incentive to sell houses at an affordable price point, as first home buyers were opting to wait for KiwiBuild homes. But the number of affordable homes built by the private sector is small – just 5 percent of newbuilds are priced at the lower quartile of house prices.

Capacity constraints remain New Zealand Certified Builders Association chief executive Grant Florence said the Government would struggle to build 10,000 homes a year above the existing 30,000 homes already delivered by private developers. He said the residential construction workforce was already at capacity, and needed to be increased in proportion to the number of houses the Government wanted to build. “It’s not an exponential thing,” he said. An MBIE report found there were 245,600 workers employed in construction as of March 2017. The Government has talked-up the potential productivity gains of KiwiBuild, meaning the existing workforce, supplemented by migrants, could produce more homes per worker than they do currently. One popular productivity gain is the use of prefabricated buildings. But Florence believes the New Zealand market is too small for prefabrication to take off. He said the political risk of KiwiBuild being dismantled by future governments meant it was unlikely prefab builders would look to invest in prefab manufacturing here.

IN THE KNOW —

Prefabrication in Building Mike Stanton, from the Frame & Truss Manufacturers’ Association (FTMA) executive team writes that New Zealand has embraced pre-fabrication through off-site frame and truss manufacturing of houses since the 1960s and continues to promote and use new innovations to enable homes to be built faster and more efficiently with bigger, smarter manufacturing facilities than ever before. The Government’s KiwiBuild programme aims to add another 10,000 homes above the 32,000 built today which presents New Zealand’s building industry with some unique challenges. Foremost among these is how the 10,000 extra homes will be produced– options aired include sourcing modular homes from offshore but this would impact adversely on New Zealand’s building labour force as well as add to time delays. New Zealand’s unused manufacturing capacity and capability needs to be harnessed – accordingly there should be no need to re-invest or re-invent the wheel in terms of pre-fabrication with FTMA members. The capacity is here now to meet all of New Zealand’s needs. The focus by Government and industry should be to help get existing manufacturing sites up to 100% production which will make the KiwiBuild delivery of 10,000 homes more easily achievable. New Zealand’s obsession with bespoke housing is another challenge to overcome. Bespoke design adds costs and time

Mike has been involved in the construction industry for over 30 years, specialising in rapid construction and frame and truss industries. Having worked overseas (Dubai, Africa and America) Mike fully understands new methodologies of construction and how New Zealand is best suited to take up the challenge to deliver these to New Zealanders.

to manufacturing, whereas mass produced designs significantly reduce costs, so a more practical option would be if the Government encouraged FTMA members to start production of more standardised homes, with the final assurance being that all frames and trusses that are manufactured by FTMA sites are done in strict accordance with the New Zealand Standard NZ3604:2011 Timber Framed Buildings. A fallacy often heard in the housing shortage debate is that New Zealand lacks high-tech manufacturing facilities to build homes. The Frame & Truss industry continues to invest in new technologies that add value in and around productivity and design enhancements that deliver efficient and compliant solutions, such as installation of barrier board and flooring cassettes, along with BIM modelling (Building Information Management) and other enhanced software developments. Lastly, can we afford to keep ignoring the issue of rising land prices? Despite pre-fabrication, modulation, innovation and improved production efficiencies it is land prices which remain a key barrier to housing affordability in New Zealand. A suggestion to the Government is to seize the initiative and buy large tracts of land and convert this to leasehold titles which will immediately put homes within the reach of most Kiwis and stimulate the industry to build more homes to meet demand.

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NZCB NEWS — Grant Florence Chief Executive

The End of a Busy Year is Ahead As we are in the home straight toward the end of the calendar year and the time for that well-earned break, it is worthwhile taking a moment to reflect on the past year in our building sector and the Association. Crazy busy – not enough skilled trades – not enough subtrades when I need them – delays, delays – not enough hours in the day – could be how we would describe 2018. Even with these frustrations we are in good times. That niggle of where is the next job is not evident this year, with many NZCB members reporting that order books are full for all of 2019 and many beyond. A great position to be in.

It has been a year (the first for many) that we have not had a significant further compliance laws inflicted on the industry – phew – it is nice to have a break from this for a while. Unfortunately, I am not sure we will be able to report the same at the end of 2019 as there are many policy reviews taking place, many of which will result in further change. Watch this space.

Planning is already underway for some exciting and value adding activities to be launched over 2019.

Recent building consent data shows us that we are building at a rate which New Zealand has not seen in 40-odd years – 1976 to be precise. Consents are up over 33,000, and spending on alterations and renovations is extremely high as well. Most forecasts state that this strong level of demand will continue through until 2022.

KiwiBuild, rising costs and the changing sea in health and safety were all topics that were present over the year – many will still be in focus over 2019 – and hopefully we will gain a clearer view of how Central Government and the policy makers intend to proceed with these over the coming months. NZCB has continued to progress over 2018, with highlights being: our 20th birthday (20 years since the Association started); the launch of the first edition of Revere (which has received very positive responses); strong membership growth; record number of entrants in the NZCB Apprenticeship Challenge; and another record-breaking annual Conference held in Rotorua, with over 750 attendees. So, we are in pretty good heart. But we cannot rest on our laurels and planning is already underway for some exciting and value adding activities to be launched over 2019. Firstly, though, it is time to take a break and that well-earned rest, turn the phone off, the emails can wait and all spend some real quality time with your family and friends. You have all earned it. On behalf of the Board, the staff of NZCB and myself, a big thank you to all our members, industry partners and stakeholders for your support over the year. We wish you all a Merry Christmas and a safe New Year. Bring on 2019!

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NZCB InHouse December 18/January 19

Articles inside

My Top 5 Tips on Pricing a Renovation

10 Signs of a Good Builder

Your One-Page Action Plan for 2019

Homeowner Survey Results

Be Prepared

A New Beginning

Building Compliance

Builder to Business Owner

Keeping Employee Information and Personal Files

ITAB Apprentice Completions

Small Business Productivity & Innovation