What is on the horizon for 2023?

As we move into 2023, we hope we can say goodbye to the last couple of years in which we have had to navigate the challenges of a pandemic and everything that has resulted from COVID-19. I am, of course, referring to all those supply delays and price increases, staff being sick and having to isolate, and having to move your team from one site to another to keep productivity up. On top of all this, we have seen increased expectations from many clients.

The plan moving forward?

As decreased building activity creates a more competitive tendering market with more demanding consumers, builders will need to be well prepared if we want to be successful. Some of the things you can do to assist with this are:

• Have pride in the brand. Turn up in a branded shirt. Have your vehicle, your website, and your business cards branded –basically oozing ‘I am a proud New Zealand Certified Builder’. First impressions count!

• Turn up with a detailed proposition package:

At the same time that builders were dealing with these challenges, the New Zealand economy was experiencing increasing inflation, with higher living costs, increasing wages and salaries, and increasing mortgage rates.

These pressures on the building industry and the New Zealand economy have made managing a business very difficult, and many businesses have had no alternative but to shut down. To those business owners who have managed to weather this challenging time, well done! I am sure you have had to make a lot of sacrifices to get here, and I hope and believe this will have strengthened your resilience, moving forward.

What have we learned?

Over the past two years, we have seen the appearance of a number of trends:

• Building activity was initially very high, meaning builders were busy and didn’t have to go looking for work. Coming to the end of 2022, we saw a considerable downturn in building activity, which is expected to continue into 2023.

• Homeowners have become more informed, meaning they are doing their homework on what they should be receiving from their builder.

• Third-party involvement has become more influential. Bank and mortgage broker requests have become more challenging for the builder. Banks have been pushing back on cost and mark-up contracts and leaning towards fixed price contracts in an effort to lock the builder into an agreement with no room to pass on any price increases and supply delay costs.

– Business prospectus/client testimonials – Quote –

Prescribed client checklist

– Prescribed disclosure statement

– NZCB Building Contract –

–

Scope of works

Halo

10-Year Residential Building Guarantee

The more information you can give the client, on who you are and what makes you different from the next builder, the better. It yields a sense of professionalism and gives the client confidence in your abilities.

• When you are with the client, sit down and take the time to go through this proposition package, so they fully understand every aspect.

The more work you put in upfront, the more likely you are to succeed not just in the tender but also in the contract.

If you are unsure where to access any of the documents and templates outlined in the above proposal package, please don’t hesitate to call the NZCB National Support Office on 0800 237 843 or join me in the next Toolshed Navigation webinar. More details and dates can be found on the Events Calendar on the members’ only Toolshed website.

Nga mihi.

Shane Ririnui NZCB Education and Technical Manager