InHouse magazine March 2025

InHouse

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From the Chief Executive

Welcome to the first issue of InHouse 2025

MALCOLM

YOU MAY HAVE noticed a new look for the magazine this year, as we move from publishing it six times a year to four.

With this shift, we’re planning to provide more in-depth articles on issues and stories that matter to our members in a way that we simply couldn’t manage before. And we’ve taken the opportunity to rethink the design of the magazine as well, working with our creative agency Stanley Street.

I want to take the chance to thank Senior Partnerships Adviser Linda Moody who has overseen InHouse for around six years, and now that she’s working more closely on our partnerships, is handing over the reins to Senior Communications Adviser Andrew Smith. Thank you Linda for all the hard work you’ve put into the magazine over so many years.

We’re well into 2025 now but times are still tough for the industry, with forward workloads still light for many of our members. The general feeling seems to be that we are currently at the bottom of the economic cycle and it may be mid-year before work really starts ramping up.

We know that a lot of our members could use more job leads, and we’re planning for our new marketing campaign to boost the number of homeowner inquiries. Keep an eye out for this campaign hitting on-demand TV, national radio and your social media feeds in April, and read more about the thinking behind it and what it will look like on page 18.

The first half of this year will also be a busy one for our advocacy efforts. We’ll continue to meet with Ministers and government officials about both the

building regulatory system and the vocational education and training system. Whether the outcome of the submission process for the former matches the government’s stated ambitions in this space will be interesting to watch. You can read more about our work in this area on page 6.

As well as trying to drive business for our members through our PR and marketing work, and influencing government thinking around changes to the sector, we are also keen to build on one of the Association’s key strengths, its sense of community.

That is why a key focus for 2025 will be increased engagement with our regions, telling community stories, supporting our regional leadership groups and their events (and promoting localism), and ensuring new members are appropriately welcomed and supported across their first year of NZCB membership.

And as if all that wasn’t enough, Marcia Hintz and her team are working hard confirming final details for the NZCB Conference and Expo in Hamilton (6-7 June). Check out what’s in store on page 12. The conference is one of the highpoints of the year for the Association, and if you haven’t already done so, book your tickets now. It’s a fantastic occasion and one of the few times in the year you get to meet members from around the country. It’s easy to get bogged down in the day-to-day of your builds and business but this is your chance to take some time to build your networks, learn something new, and enjoy the great company that is the NZCB community.

FLEMING

NZCB Chief Executive

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InHouse

InHouse

Published quarterly in print and online, InHouse is the official magazine for New Zealand Certified Builders Association (NZCB). InHouse aims to educate and inform our members and their staff of the latest news from the Association and the Building and Construction Industry.

New Zealand Certified Builders

PO Box 13405, Tauranga Central, Tauranga 3141 10 Marsh Street, Tauranga 3110

07 927 7720 0800 237 843 nzcb.nz

SENIOR COMMUNICATIONS & ENGAGEMENT ADVISER

Andrew Smith andrew.smith@nzcb.nz

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Nicola Airey nicola@nzcb.nz

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If you have received a copy of InHouse and wish to opt out, you would prefer to receive it via email, or would like to update your details please email membership@nzcb.nz

Advocating for our members

As reform in the construction sector continues in 2025, NZCB is hard at work making sure our members’ interests are represented to decision makers.

NOW INTO ITS second year, the coalition government will be looking to consolidate and refine some of the proposals for the construction sector it introduced in 2024.

NZCB continues to meet with Government ministers and officials to better understand these proposals and advocate on behalf of our members and the industry more broadly, and our efforts will be focused on two main initiatives in the coming months.

H1 insulation regulations

There was extensive media commentary mid-2024 about how H1 building regulations might be amended and even abolished, following concerns about high costs and overheating.

NZCB played a prominent role in leading the response to these suggestions, arguing that the extra insulation costs imposed by H1 were minimal and could be reduced even further by adopting a different method of calculating the insulation needs for a particular build to meet H1 standards.

We engaged closely with Minister for Building and Construction, Chris Penk, and MBIE on this work, providing data that came from a study we commissioned on the insulation needs for the NZCB Studio plans we are launching. We were pleased that the Minister and his officials revised their assessment of the H1 regime along the lines we suggested.

Although MBIE is still looking to refine the regulations, our advocacy for retaining the regulations and requiring a more sophisticated calculation or modelling method to be used – rather than the blunt scheduling method – for assessing a build’s insulation needs has formed the basis for a new proposal for

regulatory reform.

We have emphasised our position in the submission we made on these proposals, which you can read at nzcb.nz/submissions.

Vocational education

Reforms to the vocational education system were also a major focus for NZCB’s advocacy efforts last year, and will continue in the first half of 2025.

As Te Pūkenga is disestablished, responsibilities for workplace training and standards setting will need to be given to other organisations, including those within the Te Pūkenga structure whose name and form might be reimagined.

The consultation in August and September last year submitted a range of options for how this might be done, and whether financially unsustainable Institutes of Technology and Polytechnics that while important for regional development should be managed under a proposed new federation system.

The new round of consultation has refined the options for the post-Te Pūkenga environment. Industry Skill Boards (ISBs) would be established to replace Workforce Development Councils, and the consultation puts forward two options for the extent of the role for these ISBs: would they be confined to solely setting training standards (with training providers such as the former ITOs, Private Training Establishments, or Polytechnics managing all other aspects of education and training), or would ISBs take on pastoral care of the learners as well as the standards-setting function?

NZCB made a joint submission on these issues with Master Builders, which you can read at nzcb.nz/ submissions.

There was extensive media commentary mid-2024 about how H1 building regulations might be amended and even abolished, following concerns about high costs and overheating.

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Halo Guarantee update

Last year was a strong one for Halo, and it has moved to strengthen aspects of the guarantee even further.

Year end results

While applications were down 22% in 2024 over 2023, the financial performance of Halo Guarantees was very strong. This was due to several factors including:

u As more guarantees come into force we receive revenue on a greater number of policies (as income is deferred over 10 years).

u Underwriting profit was positive, meaning income from policies was greater than the total value of claims paid, future claims provisions and expenses.

u Income on our investments was very strong.

This should provide all members with comfort that the guarantee is working as it should and the increased equity from the 2024 financial year provides additional strength to ensure future claims can be covered.

Specified Residential Dwelling Indemnity

It’s been six months since we rolled out this product to help protect members from some of their long-term contingent liability. Currently 52% of guarantee applications have included the indemnity agreement. If you are yet to select an indemnity agreement when you apply for a guarantee, we would urge you to understand the product and the benefits it provides to you and please call us if you’d like to know more.

Essentially the indemnity product covers you, the member, in two instances – note that it only provides cover after the 24-month defect period and if there is an approved claim under the guarantee. Therefore, the agreement covers structural or weathertightness issues that form a claim (as outlined in the guarantee policy). The cover includes:

u Structural defects or weathertightness issues resulting from product failure or material defects (your own work is not covered)

u Structural defects or weathertightness issues caused by sub-trades – where reasonable efforts have been made by the member to have their sub-contractor rectify.

Changes to guarantee

As advised late last year, we have made some changes to the guarantee that applies from 1 January 2025. If you are not familiar with the changes, we have summarised them below, however please review the new Homeowner and Member Handbooks on the Tool Shed.

u Transfer on death or divorce process We have amended to outline what is required to facilitate the transfer in these situations.

u New delays clause We have been advised of several builds that have paused construction, primarily for client driven reasons. The new clause will state that “If the build is delayed greater than 90 days, Halo needs to be notified with the reasons and expected recommencement date. If the delay is likely to be lengthy it will be at our discretion whether we continue to provide cover”

u New defects present on sale of property clause We’ve had situations where the client purchasing a home has raised an issue and the client selling tells them to claim it on the guarantee. As the purchaser was not the owner when the defect was identified they can’t claim. The clause will now explain that if a home with a guarantee is sold, Halo will not cover defects that are present on sale, and that the vendor needs to submit a claim prior to settlement.

u Clarity on refund process These changes mainly clarify what happens when a member goes into liquidation.

u Changes to the way we manage liquidations Previously we canceled the guarantee if a member goes into liquidation. From 1 January 2025, we will align this process with client cancellations, which states that if the client engages a new NZCB builder, we may agree to carry on cover (noting that the new builder is not liable for past work).

Labour only guarantees

We also advised last year that from 1 January 2025, we ceased selling labour-only guarantees. We have noted several instances where the product is being sold to clients by the head contractor (not a member) or developer incorrectly. This is potentially misleading and may cause damage to both the Halo and NZCB brands.

Client claims

We received a number of claims last year, with the majority being remediated by the builder involved.

However, there have been a few claims where the original builder has gone into liquidation and once approved, the client has chosen another NZCB member to remediate. We have paid out four claims this year that are in excess of $50,000 and all clients were grateful they had the guarantee in place.

Ultimately, Halo paying claims demonstrates to current and future clients that in the unlikely event their builder is unable to fix an issue that is covered under the policy, Halo can arrange for this to be completed at no cost to the client.

The Halo Guarantee has been developed in conjunction with and is tailormade for and exclusively available to members of New Zealand Certified Builders Association (NZCB)

Annual General Meeting 2025

Notice of New Zealand Certified Builders Annual General Meeting 2025

The AGM will be held on Saturday 7 June in Hamilton, at the Claudelands Event Centre, Gate 4, Brooklyn Road, Hamilton.

The AGM will begin at 8:15am.

All members and partners/directors of NZCB Business Members are eligible to attend the AGM.

Agenda

u Welcome and apologies

u Minutes from last Annual General Meeting, Friday 21 June 2024

u Chairperson’s Report

u Chief Executive’s Report

u Presentation of the Annual Financial Report for the year ending 31 December 2024

u Ratification of the 2025 NZCB Constitution, which has been updated as required under legislation to reflect the requirements of the Incorporated Societies Act 2022.

l Presentation on the changes to the Constitution that are in addition to regulatory requirements.

l Members to vote to ratify the updated NZCB Constitution

u General Business

u Announcement of 2025 New Zealand Certified Builders Board Election results

Members who wish to ask questions of the Chief Executive and Board at the AGM, and who are unable to attend in person, can submit questions in writing to the Chief Executive, no later than Friday 30 May 2025.

Meeting apologies and advice of proxy votes should be submitted, via email, no later than 5:00pm on Friday 30 May 2025.

Please email any items for discussion, meeting apologies and advice of any proxy votes to New Zealand Certified Builders Chief Executive, Malcolm Fleming (malcolm@nzcb.nz).

There will be an election for one board member this year. We will make a separate Call for Nominations for this position in early April, with information about what the role entails and how the election will be conducted. The results of this election will be announced at the AGM.

Get ready for NZCB Conference 2025

There’s just over two months to go until NZCB Conference and Expo 2025.

So if you haven’t got your tickets yet and told your clients you’ll be taking a couple of days off, now’s the time to do so.

THIS IS THE highlight of the NZCB year and it’s a great chance for you and your team to catch up with colleagues from around the country – share ideas, swap stories, learn about new industry trends, and make the most of the fantastic NZCB community.

Every year, we offer a huge array of trade stands for you to browse, education and technical sessions to attend, factories to visit, and social events to enjoy, including the Gala Dinner on the Saturday night.

Check out some of the highlights we have lined up this year.

Keynote Speakers

u Richard Gerver

Richard Gerver is a globally recognised thought leader in leadership, change, and human development. His journey began as an awardwinning headteacher in the UK, where he revitalised a failing school within two years, earning international acclaim. Dubbed “The Walt Disney of the Classroom” by the UK national press, Richard’s innovative approach to leadership and transformation resonates far beyond education.

Richard has since become one of

ALIA BOJILOVA

Former SAS psychologist and expert in leadership, resilience, and human potential.

RICHARD GERVER Thought leader in leadership, change and human development.

the most sought-after voices on navigating complexity and change in the business world. Through his books and speaking engagements, Richard has provided practical, visionary strategies to organisations such as Google, Microsoft, Deloitte, and Visa, and collaborations with influential figures like Barack Obama, the Dalai Lama, and Steve Wozniak.

From helping leaders build resilient teams to inspiring innovation and cultural transformation, Richard’s approach is grounded in real-world application and human-centered leadership. His work continues to empower businesses to unlock potential, embrace change, and achieve sustainable success in an ever-evolving world.

u Dr. Alia Bojilova

Former SAS psychologist Dr. Alia Bojilova is an expert in leadership, resilience, and human potential. Known for her insightful, energetic, and inspiring approach, Alia has guided thousands of leaders, teams, and organisations through some of the world’s most challenging environments.

Alia joined the New Zealand Army, where she deployed to Syria as part of an international peacekeeping force. In a harrowing experience, she was taken hostage but managed to connect with her captors, demonstrating empathy and resilience under extreme circumstances. This experience shaped her belief that resilience is not about bouncing back but bouncing forward, emerging stronger

and better after setbacks.

Alia’s diverse experience spans government, Olympians, the commercial sector, healthcare, education, creative industries, and not-for-profits. Alia is also the author of The Resilience Toolkit, which outlines her proven four-step process for unlocking true potential.

Alia’s career has been marked by extraordinary achievements, including receiving the United Nations Commendation and the Inaugural Meritorious Service Medal for her pivotal role in negotiating critical incidents in the Middle East.

Apprentice Challenge 2025, presented with BCITO

One of the highlights of the NZCB Conference and Expo every year is the final of the Apprentice Challenge.

This year, we’re thrilled to welcome on board BCITO as major sponsor for the Apprentice Challenge, and to hear from the best apprentices in the industry as they vie for the Ken Read Memorial Trophy and up to $10,000 in prizes.

We’re also grateful to Mitre10 Trade for their support as materials sponsor for the Apprentice Challenge. Not only will they supply all the material our apprentices need to complete their projects, many of the regional events will be held at Mitre10 stores around the country. We’ve had Mitre10 Trade as main sponsor of the Great Apprentice Race at Conference in previous years, and it’s fantastic to have them back.

We’re really excited about a u

tcouple of changes we’ve made to the Apprentice Challenge this year.

Rather than coming up with the project build ourselves, we ran a competition for students working with Architectural Designers New Zealand to design the project that the apprentices will build (see story on page 16). And as part of their entry, we’ve asked apprentices to work with their local community to find a suitable home for the project once it’s complete, and document this engagement process.

This work means that entrants to the Apprentice Challenge don’t only have to demonstrate their technical abilities, they also need to show they have the ability to work with potential clients and the broader community – skills which will stand them in good stead when it

comes time to join the workforce. Find out more about the challenge at apprenticechallenge.nz.

MBIE Plenary Session

MBIE’s Dave Hall (General Manager, Building System Performance) and Suzannah Toulmin (Manager, Consenting and Practitioners Policy) will be providing an overview of a number of proposals affecting the sector:

u Granny flats

u BCA structural reforms

u Self-certification

u Remote consenting

u Liability and insurances

We ran a similar session for regional presidents in November 2024, and the feedback from the presidents was fantastic. Make sure you get along to this session and get the latest updates on reforms that will affect you directly over the next year.

Education and technical workshops

We’ll have a range of seminars and workshops for conference attendees, covering the following topics:

u Marketing

u HR

u Finance

u Wellness

u Legal

u Sustainability

These sessions are great ways to get up to speed with any new regulations you need to comply with, how to improve your business processes, and how to get out there and attract new clients.

Behind the Build

As well as everything that’s happening at the conference centre itself, there’ll be an opportunity, before the conference starts, to visit local sites to see what goes on behind the build. Tickets for Behind the Build need to be purchased separately and are available on the conference website.

We’ll be offering visits to APL Hautapu, SaveBOARD Sustainable Build Materials, and to the refurbishment of the Hamilton Gardens Visitors Centre, which will also include a tour behind the scenes of one of their newest gardens – Medieval.

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Design winner for Apprentice Challenge

‘Functional simplicity’ a winning formula for architectural design student.

OPEN POLYTECHNIC STUDENT

Jillian Wilson has been announced as the first-ever winner of the NZCB Apprentice Challenge design competition.

The competition is held by NZCB in partnership with Architectural Designers New Zealand (ADNZ) and the Building and Construction Industry Training Organisation (BCITO).

Each year, NZCB Apprentice Challenge entrants build a project within an eight-hour time limit to demonstrate their building skills. Previously this project has been designed in-house by NZCB, but for the first time, this design phase became its own competition.

Architectural design students were asked to submit build plans for a durable planter box, with the winning design built by up to 100 apprentices when they compete in regional heats around the country on April 12.

Competition winner Jillian Wilson recently completed her architectural design studies, which she calls a ‘second career’ after being a homeschooling mother for 25 years.

“I’m from a construction family, so becoming an architect has always been a dream of mine. Now I have the skills, I saw the Apprentice Challenge design competition as an opportunity to challenge myself and do something a bit different.”

as each apprentice approaches the design in their own way.”

Judges said Jillian’s design demonstrated a strong level of complexity, requiring apprentices to show precision and technical skill, while still being achievable in the eight-hour build timeframe.

Jillian’s winning design will be revealed to competing apprentices before the regional heats in April.

Malcolm Fleming, Chief Executive of NZCB, says the addition of the design competition to the Apprentice Challenge programme is part of NZCB’s focus to prepare apprentices for the future.

“When these apprentices get qualified to run their own projects, they will work closely with architects and designers to bring bespoke houses to life. For the 2025 Apprentice Challenge, we wanted to give apprentices a sense of that process.

“It was great to partner with ADNZ to provide this opportunity to their members, to achieve a design that was by students, for students.”

ADNZ Chief Executive Officer Keryn Davis says the competition aligned with their core purpose to educate designers throughout their careers, celebrate good design, and collaborate for the greater good of all.

The Apprentice Challenge is now in its 15th year. It celebrates up-and-coming leaders in the construction sector and puts their carpentry skills to the test with a practical building challenge. Entrants compete at regional heats around the country on April 12 in an eight-hour practical build, creating a project to donate to their local community. Up to 22 finalists go through to the national final at the NZCB Conference in Hamilton in June to complete for the winning title and a prize pack worth $10,000.

Jillian’s design is inspired by the functional simplicity of public seating in her local park in Auckland.

“My grandfather was a joiner by trade, so I wanted to use traditional carpentry techniques in the design and give apprentices something they likely haven’t done before, while providing a practical and durable final product.

“I look forward to seeing the craftmanship and personality on display

“Jillian’s fantastic achievement as one of our student members is very well deserved, and she gains valuable experience for her future in the architectural design industry.

“Congratulations to Jillian and well done to all the other entrants for their hard work and creativity.”

When built, the planter boxes will be donated to a local community group chosen by each apprentice.

For more information visit: apprenticechallenge.nz.

JILLIAN WILSON

Open Polytechnic student.

Ad campaign builds on connection

Relationships are at the heart of a new advertising campaign for NZCB.

GET READY TO SEE NZCB up in lights from next month, as our new advertising campaign launches.

The theme of the campaign, “Find a Builder You Click With”, is all about showcasing the personality of our members and how they’re a great fit for homeowners looking for a builder they can trust.

The ads emphasise that not only do NZCB members have the skills and training to do a great job, they’re the sort of people homeowners can relate to and can imagine working with over the course of the project.

NZCB’s Marketing and Communications Manager Nicola Airey says the campaign is all about getting more business for members.

“We know times are tough for NZCB members but there are some green shoots out there. With interest rates falling and business optimism starting to pick up, more homeowners will be starting to think about getting projects scoped and priced up, so now is the time to get our brand out there.

“We know we have the most skilled builders in the business but that’s not the only thing homeowners are thinking about when they’re working out who to go with. It’s as much about ‘Does this builder get me and do I think they can fit in with what I’ve got going on at home?’

“This ad campaign is all about emphasising the importance of that personal connection.”

The campaign will focus on digital channels so NZCB can track and measure the performance of the campaign, and we’ll support it with ads on national radio as well.

Ads will link back to a main campaign webpage with easy, quick routes for homeowners to Find a Builder, or for prospective members to join NZCB. So check your business listing on Find a Builder and if anything needs updating, email membership@nzcb.nz

The campaign will go live in April and will run for around six weeks. We’ll then assess the campaign’s performance, and look to run a second wave later in the year.

Knows more about art than he lets on.

Loves hot yoga and cold beer.

Showcase your work with Revere

A

fresh look, both in print and online, is set to enhance your craft, trade and projects.

LAUNCHED IN 2018, Revere magazine showcases some of the finest projects our members have completed throughout the year. Since its launch, we’ve published nine volumes of Revere, with more than 200 homes featured.

Showcasing your build in Revere is an amazing opportunity to market your business and professionalism to the public. You can leverage off this exposure to generate leads and further brand awareness for both your business and NZCB.

We share Revere widely with our NZCB members and partners, and it is also distributed in various ways to homeowners around the country who might be thinking about getting started on their own dream build.

Revere 2025

In 2025, we will be shifting the focus of Revere away from a print-only format, to increase its suitability for digital channels.

Revere was published twice a year, but from 2025, we’ll accept applications from members all year round. Every month, several projects will be featured and added to the online Revere gallery.

Each project will include a written editorial, highlighting the key components that make each project stand out and a selection of high-

quality imagery and, where possible, video. As well as posting this material on our website, we’ll look to share it widely through Facebook, Instagram and YouTube, increasing the reach of the case studies.

Once a year, we’ll collate these case studies into a single print version of the magazine, which we distribute to members, partners and the wider public.

Every single Revere project will be a celebration of craftsmanship that will be featured on the Revere online hub – the ultimate source of inspiration.

What does it cost?

Previously, the cost to submit your project to Revere has varied, depending on how many pages you wanted to book. We are now offering a flat rate for all submissions of $1,900 (excl. GST). In return, you will receive your digital case study, along with the photos and video we take of your project for use on your own website or social channels, along with a two-page spread in the year-end print version of the magazine.

Want to feature a project?

If you’d like to feature a project in Revere, please visit the Publications page on the Toolshed and submit the online form. We’ll then get in touch to discuss your submission and organise a photoshoot.

Change is coming

Government reforms in the construction sector mean changes for builders. Michael Jamieson and Alexander Lyall break down what that means.

The BDT provides the experts who will determine the outcome of your dispute. Our registry team cannot give legal advice, but they can discuss the process and requirements of adjudication, check it is right for your dispute, and support and guide you and the other party through the process. The ADR Centre manages BDT as well as the New Zealand Dispute Resolution Centre, New Zealand International Arbitration Centre, Independent Complaints Review Authority and Family Dispute Resolution Centre. Contact us at registrar@buildingdisputestribunal.co.nz or phone: 0508 284 534

THE GOVERNMENT WANTS to unleash the construction sector and is looking at a series of reforms to make this happen. The philosophy of most of these changes can be summed up this way: New Zealand’s builders do good work and we need to let them do their job.

Grand plans to replace the Building Consent Authorities system The Government has announced plans to reform the cumbersome building consent system to improve efficiency and consistency in delivering building consent services

across New Zealand. Key drivers are unreasonably high building costs, housing affordability and inconsistencies in how the 67 Building Consent Authorities interpret the Building Code.

The proposal is to replace the current Building Consent Authorities system with a more streamlined model. Options include (1) voluntary consolidation, (2) regional Building Consent Authorities, and (3) setting up a single point of contact where builders can submit plans. The rules regarding who is liable for defective building work are also set to change, given the risks councils assume.

MICHAEL JAMIESON, Manager of Commercial Contracts at the ADR Centre, also manages the Building Disputes Tribunal (BDT).

ALEXANDER LYALL, Research Clerk at The ADR Centre.

Feedback from the property and construction sector, local government, and the public will help shape the reform to ensure the new building consent system helps overcome the current challenges and improve outcomes. We’ll closely follow the reform developments as the proposals are explored and refined.

A self-certification system

The Government is looking to change how builders carry out low-risk building work.

Qualified building professionals, such as drainlayers and plumbers, would be able to self-certify their work without the need for an inspection.

Businesses with a proven track record will be able to go through a more streamlined consent process. Examples of such businesses could include groups of homebuilders who build hundreds of near-identical homes a year.

However, the Government has not abandoned safeguards. It intends to expand them by proposing:

u A path for consumers to remedy poor work.

u Strengthening qualification requirements for building professionals.

u Strict disciplinary actions for incompetent self-certifiers. We discuss this further below.

The Government has emphasised that the self-certification scheme would be limited to low-risk, basic residential dwellings. In its announcement , the Government cited overseas evidence suggesting that most defective building work is found in large and complex developments. The proposal would allow building inspectors to focus their resources on checking this class of design.

The next step will see Government consultation before detailed policy decisions are reached.

Harsher penalties for careless builders on the cards

The proposal is also designed to make it easier for trusted builders to have their work certified. As discussed above, that means the Government must find alternative ways to protect building standards. The Government has published some thoughts on how this might be done.

The problem

The problem does not just sit within the context of a self-certification scheme. Building consent authorities have previously informed the Government that penalties under the Building Act 2004 for wayward builders have been insufficient. The penalties imposed by the Building Act 2004 often do not match the potential gain generated by cost-cutting measures.

A potential solution

The Government is looking at strengthening registration and licensing regimes. This will focus on:

u Strengthening the competence and accountability requirements for building professionals.

u Enhancing consumer protection measures in the Building Act 2004.

u Giving regulators the right powers to ensure builders and companies are accountable, with a focus on licensing, complaints and disciplinary processes.

u Introducing new offences under the Building Act 2004 to deter deliberately hiding non-compliant building work during remote inspections. Penalties could sit at $50,000 for individuals and $150,000 for businesses.

We’ll continue to monitor developments and keep you posted.

Cost informing design

Thinking about ‘cost’ doesn’t have to be at the expense of design, writes YourQS’s Nick Clements.

YOU WOULD HAVE heard the sayings, “designed to a budget”, “built to a price”, both of which have negative connotations. But is thinking about cost a bad thing? The vision should be about cost informing design; making better design decisions because we understand the impact of them. This doesn’t mean a cheap product, but conscious decisions between cost, scope, and specification.

An open chequebook

I can only recall one occasion in my career when I was given an unlimited budget. It was in my engineering days, in the early 1990s. Our team had figured out how to cast expansion joints from silicone rubber. Having successfully perfected a small one for NZ Steel, they then had a large 1m diameter one that had to be sourced from Germanywhich meant the plant was down at a cost of $150,000 an hour. They said “whatever it takes”.

Unless you are making 1m rubber joints, or are lucky enough to have a client with an open chequebook, you’ll be designing to some form of financial constraint. Too often we’ve estimated on projects where the cost has come out massively over the client’s budget, which is undesirable for all involved.

My interest in the relationship of design and cost began in 1993 as Marketing Manager at Carters. I remember saying, “Why can’t the designers’ computers talk to our costing computers?” While that showed how little I knew about computers, it was the start of my journey of exploring how information can move more efficiently through the construction process.

Back then there was an exceedingly long gap between design decisions and understanding the cost implication, and worse still, the costing methods were typically based on $/m2 which was not accurate enough to respond to small changes in detail.

Nick Clements, Managing Director at YourQS, won the inaugural NZIOB 2024 Digital Technology award for his work on 3D estimating in residential construction. He is a Registered Quantity Surveyor, Member of the NZIQS and is vice chair of the Auckland committee.

Technology empowering solution

The technology we’ve developed at YourQS connects the 3D model to the costs in a unique way that allows us to go down to whatever level of detail is relevant. Thus, enabling a way to easily value the impact of small design changes.

H1 examples show the benefits

Meeting the requirements of H1 is a classic example of the disconnect between design choices and cost. The code allows the designers levers for the R values of slabs, walls, roofs, and windows but they all cost money, so what is the best combination for your design? Making it even more complicated, design choices on window areas, ceiling heights, building proportions can also affect the thermal performance.

While designers have resources like the BRANZ Calculation method tool to determine how their design and specification can meet the thermal requirements of H1, what they don’t know is the cost. Is adding 100mm of EPS under a raft floor more cost effective than R7 in the ceiling, or do you spend more on the windows?

Understanding cost detail opens the door to innovation

There is no silver bullet for reducing the cost of building houses and there’s no magic construction system or process that will dramatically lower the cost of building. There will be a lot of small innovations that add up to make a significant impact; many of these get lost in traditional estimating.

During my early working career at CHH Wood Products, I took part in discussions about pre-primed interior mouldings; how could we recover the cost of painting to save the painter time? If a painter worked out their cost based off the floor area this is entirely lost.

Winstone Wallboards have a system that replaces framing studs with a metal angle that saves around $1,000 a house (with a bonus thermal

performance of the wall) but relies on the frame plant passing on the reduction in studs.

Our exercise for H1 just used generic systems, there will be proprietary systems out there that give a better R bang-for-buck, but it can be tricky for the developers of these to get their cost-to-benefit message out.

Price is not enough

Yes, your price must be within an acceptable band, but there will be other factors that will be the deciding ones for clients. The “soft” ones are often the most important ones; do the clients like and trust you, have you built credibility with them, are you someone they could work with? The perceived quality of your work is another that is hard to put a metric against; experience is a concept that has a lot of latitude to it. We call these non-price attributes. Doing a better job communicating your nonprice attributes allows you to charge a higher price and win work over competitors at a similar price. It’s about demonstrating how your product or service will solve problems, meet needs, and ultimately deliver better results, not just how much it costs.

What is a fair price?

We often hear that 10% mark-up is fair. I’m not sure where this came from, but it certainly isn’t from anyone who has tried to run a small to medium business at a profit. This is very rough, but a typical NZ company needs a margin of somewhere around 25% to provide around a 6% net return after you deduct business operating costs (“off site overheads” in construction parlance). To achieve a 25% margin, you need to apply a 33% mark-up (that is a whole other story).

We work with over 300 builders around New Zealand helping them price their work and this is the spread of their mark-ups:

Builders with an in-house labour source typically make a margin on the labour in addition to the overall u

We have seen labour costs increase so unless your workers are willing to take a pay cut or suddenly get more productive, these costs are sticky.

project mark-up, this would add 10-15% margin to their bottom line.

The other factor to consider with margin is risk. If you are taking more risk, you should expect more return. If a project is charge-up, the risk to the builder is reduced, so a 10-15% mark-up (plus a labour profit) may well give a fair business return. If they are offering a fixed price, then they’re taking more risk so should make a higher return, even if the project goes well. I recommend a 15-25% mark-up.

Will prices come down?

We are all aware of what happened with costs over the “Covid” boom, but now that the industry has slowed from that peak, will we see prices drop?

My thoughts are no. We might see some short-term discounting as stockists try to reduce their holdings or businesses desperate for work drop their margins, but the rate of increase will likely drop back to what was the pre-covid normal of 3-5% percent increase annually.

The reason: so much of a building is labour. Over the past 12 months, we’ve analysed 417 projects worth $445m in total. We’ve found that about 60% of the total cost of a build is labour. We have seen labour costs increase so unless your workers are willing to take a pay cut or suddenly get more productive, these costs are sticky.

For many trades we calculate the hours and materials, for the others I’ve estimated proportions. I’ve taken labour

to be for the trades, not right back to the source manufacturer, as it is harder to estimate but would increase the labour portion further.

This high labour content is also why poor productivity is such a drag on the construction sector. If we can’t find ways to make our time more productive, construction will always remain relatively expensive compared to the rest of the economy.

Fear,

fantasy or fact. What’s the basis of your decisions?

Any design process balances client aspirations against budget constraints. How often have you faced the challenge of aligning a project’s cost with its needs and vision?

Too often we cost projects where the design far exceeds the clients budget. This is okay if we have become involved early at the concept stage as this is part of the process of figuring out what can be achieved. It’s not good when we’re pricing consent drawings and the price far exceeds budget, as by the time the project has got to this point, a lot of time, energy, and money has been invested.

One of the first projects we were involved with after starting YourQS was a renovation. The builder said, “The client loves the design, but I’m worried about their $400k budget.” The estimate came out at $1.3m so no wonder they loved it if they thought that they were getting it for a third of the actual cost.

Why is striking this balance between the dream and the reality so hard?

It stems from a fundamental misconception: while residential construction appears straightforward, two key factors create complexity:

u The sheer number of decisions, contracts, and transactions required for each project

u The relatively small scale and compressed timeframes of individual builds

The time it takes from when a design decision is made until the cost impact is known adds to the problem, making it more challenging for the designer to create a design at an affordable price. These factors, combined with the significant cost increases in the recent past, heighten project uncertainty and increase the chances of the client having a bad building experience. These bad u

In today’s construction landscape, where cost assurance is paramount, technology enables a new approach: comprehensive estimates from preliminary sketches, supported by 3D visualisation to clearly delineate inclusions and exclusions.

experiences make homeowners reluctant to take on new building projects.

For renovation, extension, and bespoke building, establishing certainty is essential. This requires builders and designers to accurately assess scope and costs before completing designs.

What is Cost Certainty?

Cost certainty means accurately predicting a project’s total cost before commencement. This crucial aspect of building management helps control overruns from quantity changes or resource shortages that inflate labour, materials, and hire costs.

The challenge intensifies in bespoke building, where projects involve numerous suppliers and subcontractors. A typical house encompasses 75 separate cost centres, with 68 representing less than 5% each of the total build cost.

Distribution of costs data from 3,100 bespoke housing projects range in cost between $50,000 and $14.5m.

While many hope a single estimate from incomplete designs will predict all future costs, achieving true cost certainty demands ongoing planning, estimating, cost checking, quoting, and effective risk management.

Traditional estimating methods and timing

Three traditional methods exist for estimating building costs: u $ per floor area – Calculating internal or gross floor area from plans and applying a rate based on historical data or market information. Areas are typically expressed square metres.

u $ per elemental measure –Computing effective measures (areas, metres, volume, etc.) for each building element (substructure, upper floors, roof, exterior walls) and applying specific rates. u Trade quotes and estimates, comprising:

l Subcontractor and supplier quotes

l Trade quantities and rates

l Preliminaries, indirect costs, margin and GST

The trade quotes method offers the highest certainty but requires fully resolved, construction-ready designs approved by the building certifier. This estimating method demands significant effort and typically takes a month or more to prepare, as it depends on subcontractor and supplier responses to lock in costs.

A new approach

In today’s construction landscape, where cost assurance is paramount, technology enables a new approach: comprehensive estimates from preliminary sketches, supported by 3D visualisation to clearly delineate inclusions and exclusions. This bridges the gap between early planning needs and detailed cost certainty.

To stay competitive and maintain client confidence, the industry must embrace systematic approaches to cost estimation. Consider how your current methods align with project complexity and client expectations. Are you providing the level of certainty your clients need? The investment in proper cost planning today can prevent significant variations and challenges tomorrow.

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l Thanks to David Mitchell, Director, YourQS Aust Pty. FAIQS, MRICS for his thoughts and contribution to this article.

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We’ve got you covered

Workplace law update

As 2024 drew to a close, many of the substantive changes to employment, health and safety or immigration law promised were yet to materialise. Here’s an update on the latest.

KATE ASHCROFT, PARTNER, of Copeland Ashcroft Workplace Lawyers.

Copeland Ashcroft Workplace Lawyers operate the NZCB Employment helpline, offering specialist advice, representation and support across employment, immigration and health and safety law, to businesses throughout New Zealand. Call 0800 354 821 or visit copelandashcroft.co.nz.

THE MINISTER FOR Workplace Relations and Safety has announced three more proposed changes to the Employment Relations Act 2000 and the following developments are expected to come into effect in 2025.

Employment law

In September, the Minister for Workplace Relations and Safety announced that an exposure draft of a bill to reform the Holidays Act 2003 would be released for consultation.

The exposure draft is said to include:

 Pro-rating of sick leave, proportional to hours of work. This means that an employee who works 30 hours a week could be entitled to seven and a half sick days a year, while fulltime employees receive the usual 10 days.

 Moving from an ‘entitlement system’ to an ‘accrual system’ for annual holiday entitlements.

 More simple methodology for calculating leave without having to rely on data on an employee’s daily hours of work.

 Introducing objective criteria for using ‘pay-as-you-go’ annual holidays and an easier review process.

 Clarifying that only full pay periods are to be included in a proposed new 13-week reference period when quantifying average weekly pay for annual holiday calculations.

The exposure draft is currently in the targeted consultation stage and we anticipate hearing back from the Minister in 2025.

Employment Relations (Pay Deductions for Partial Strikes) Amendment Bill

The Employment Relations (Pay Deductions for Partial Strikes) Amendment Bill passed its first reading on 11 December 2024.

Currently if an employee is engaged in a partial strike, their employer cannot deduct their pay unless they suspend the employee or issue a lockout notice.

The proposed partial strike changes mean employers could either:

 Reduce an employee’s pay by a proportionate amount, calculated in accordance with a specified method that is based on identifying the work that the employee will not be performing due to the strike, or

 Deduct 10% of their wages. Employers would have to provide written notification to employees before the deduction is made (the amount of deduction would not be required in the notice).

If a union disagreed with the employer’s calculation, the union would need to advise the employer that they disagree as soon as practicable after receiving the employer’s information on how they calculated the specified pay deduction. The union could apply to the Employment Relations Authority, to determine whether the employer had calculated the correct deduction.

The Education and Workforce Committee will report back on the Bill

by 22 April 2025. The Minister has indicated that this bill is being introduced as a large proportion of public sector collective agreements are expiring in the first half of 2025.

Removing the ability for employees who make $180,000-plus to raise a personal grievance for unjustified dismissal

This amendment would deliver on the ACT-National coalition to set an income threshold above which personal grievances cannot be pursued.

Cabinet has agreed to introduce an income threshold of $180,000 per annum for unjustified dismissal personal grievances, meaning employees earning above that would be unable to raise an unjustified dismissal claim and we expect this to be progressed through the Employment Relations Amendment Bill in 2025.

At present, commentary on the income threshold of $180,000 per annum refers to a regular base salary and excludes other income such as incentive payments and benefits like vehicle use. It is not proposed to be adjusted for part-time employment.

Employees earning more than $180,000 a year would still be able to raise other types of personal grievances and we expect would have other avenues for claim.

Removing rewards for poor employee behaviour

This proposed amendment would deliver on the ACT-National coalition to remove the eligibility for remedies if the employee is “at fault” and we expect to be introduced to potentially amend the Employment Relations Act 2000 to:

u Remove all remedies for employees

whose behaviour amounts to serious misconduct;

u Remove eligibility for reinstatement in a role and compensation for hurt and humiliation when the employee’s behaviour has contributed to the issue, for example repeated instances of poor performance.

Other, more technical changes that would have an impact on personal grievance outcomes include:

u Allowing remedy reductions of up to 100% where an employee has contributed to the situation which gave rise to the personal grievance.

u Requiring the Employment Relations Authority and Employment Court to consider if the employee’s behaviour obstructed the employer’s ability to meet their fair and reasonable obligations.

u Increasing the threshold for procedural error in cases where the employer’s actions against the employee are considered fair.

Examples of behaviour amounting to ‘serious misconduct’ includes:

l Violent behaviour

l Bullying

l Sexual, racial or other harassment

l Theft or fraud

l Behaviour that endangers the health and safety

l Using illegal drugs at work

l Dishonesty

Contributory behaviour is defined as ranging from minor behaviours such as unproductive behaviour, repeated instances of lateness, misuse of company resources or underperformance, to more serious behaviours such as violence, theft, or fraud.

While it is unclear at this stage how this amendment will functionally differ from the contribution provision currently set out in the Employment Relations Act 2000, this will be u

MBIE has previously highlighted the need for reform in areas where workers operate machinery, use equipment or work at heights, which account for almost 80 per cent of New Zealand’s work-related deaths, roughly double the rate in Australia. The Business Leaders’ Health and Safety Forum estimates the cost of workplace illness and injury in New Zealand at $4.9 billion per year.

progressed through the Employment Relations Amendment Bill which the Minister aims to introduce in 2025.

Employee or contractor?

The Government proposes to introduce a test where, if satisfied, a contractor arrangement will be upheld.

The Minister for Workplace Relations and Safety, Brooke van Velden, said:

“This new approach will provide businesses with more certainty to proceed with innovative business models, involving contractors where this is appropriate, and also enable businesses to offer better terms and conditions to their contractors with less concern that it might impact the contractor’s status.”

These changes are predicted to be introduced in 2025. For more information, please visit copelandashcroft.co.nz/law-changeon-contractor-vs-employee

Health and safety

Consultation is well underway on the Health and Safety at Work Act (HSWA) 2015 review and reform. This follows criticism from MBIE, describing current health and safety laws as: ‘an outdated and incomplete regulatory framework’.

MBIE has previously highlighted the need for reform in areas where workers operate machinery, use equipment or work at heights, which account for almost 80 per cent of New Zealand’s work-related deaths, roughly double the rate in Australia. The Business Leaders’ Health and Safety Forum estimates the cost of workplace illness and injury in New Zealand at $4.9 billion per year.

The New Zealand Institute of Safety

Management has responded positively to the reform, proposing three recommendations: better system leadership and coordination, improving and investing in WorkSafe and better regulations and guidance.

The institute states there is a “complex and dysfunctional set of funding mechanisms, roles and policy functions between MBIE, ACC and WorkSafe,” which has prevented implementation of health and safety strategies.

While consultation regarding the HSWA progresses into 2025, there has been a lack of focus in comments about wellbeing and mental harm to date, so it appears the focus will be on physical safety.

Immigration

Heading into 2025, we note a number of changes in immigration law:

 Maximum period of stay: a new rule has been introduced that limits the time a migrant worker can remain in New Zealand continuously on an Accredited Employer Work Visa (AEWV) to five years. For skilled roles there is a lower maximum period of stay. Migrant workers will need to meet residence visa requirements within the maximum period of stay period or they must depart for 12 months.

 Median wage: Immigration NZ has said that from March 2025, they will replace the median wage rate with market rates. This will provide an opportunity to employers that employ workers in roles with market rates between e.g. $23.50 to $35, to lower their average bottom cost. We have summarised potential savings in the table below.

Right: Table illustrating potential savings when Immigration NZ replaces the median wage rate with market rates.

While positive overall, this space will need to be navigated by employers carefully especially if they have already supported migrant workers for AEWVs, requiring employers to pay at least $29.66 per hour, for example.

 Changes in the investor migrant space: the Active Investor Policy will be changed to encourage more investment into New Zealand, the Minister of Immigration has suggested. An area in which the government may look to encourage investment is infrastructure bonds.

 Changes in the skilled residence space: the Skilled Migrant Category will be reviewed in 2025.

Stay up to date

Copeland Ashcroft Workplace Lawyers delivers specialist advice, representation and support across employment, immigration and health and safety law to businesses throughout New Zealand. We can provide advice and guidance pertaining to any of the changes mentioned above.

If you’d like advice on how this could impact your business or more information regarding the above, please contact our team. Or visit copelandashcroft.co.nz to subscribe to our newsletter, gain access to our free webinars, receive invitations to our workshop and seminar series and stay up to date with the latest developments.

Disclaimer: We remind you that while this article provides commentary on employment law, health and safety and immigration topics, it should not be used as a substitute for legal or professional advice for specific situations. Please seek legal advice from your lawyer for any questions specific to your workplace.

Wrap-Up

CS Cavity sliders: fresh look, strong foundation

You might know us as CS for Doors, CS Group, or Cavity Sliders. To simplify things, we’re unifying all our locations under one brand: CS Cavity Sliders. While “cavity sliders” has been picked up by others in the industry, “CS” is what distinguishes our products as the original standard of quality and your best solution.

Alongside our rebranding, we remain committed to delivering top-quality cavity sliders and design solutions. “It’s about moving forward while staying rooted in the values that have earned us trust in the construction industry,” Nick Bridge, Group General Manager at CS Cavity Sliders, explains.

What does this rebrand mean for you?

Our focus on high-performance, easy-to-install systems has not changed. We’re dedicated to producing the highest-quality sliding door hardware that meets the demands of the construction industry.

What’s next for CS Cavity Sliders? We’re also expanding our product offerings. We’ll continue to innovate and develop new products that make your job easier – whether it’s with more advanced door systems, improved finishes, or new technology that boosts efficiency. Stay connected with our new look Check out our revamped website at cavitysliders.com/nz/ for guides, resources, and more.

Let us help you get the job done right!

Earn LBP points with Soudal

We’ve got you sorted!

Our training modules cover:

 Silicones

 Foams

 Rigid adhesives

We walk you through best practice processes, discuss the new H1 Insulation and R-Value requirements, and discuss the different types of rigid adhesives and their best uses.

Scan the QR Code to create and account and get started or visit training.soudal/login

TXT in the middle of nowhere

One NZ Satellite TXT is here offering coverage like never before to Kiwi living, working and playing in some of the most remote parts of the country! Customers with an eligible One NZ phone and plan who are out of traditional cell-tower coverage can now TXT anywhere in New Zealand they have a clear line of sight to the sky.* The One NZ Satellite TXT service is available on a range of eligible phones, with more becoming eligible over the coming months. Better yet, the service is included on eligible Pay Monthly mobile plans at no extra cost. See one.nz/satellite

*TXT in minutes on eligible phones and plans. TXT only and needs line of sight to sky. Terms, fair use and capacity control applies.

GIB manual simplifies and clarifies

A core resource for design, detail and construction has had a revamp. After extensive testing and development, GIB has announced an update to its GIB Fire Rated Systems manual.

This technical manual, covering fire rated wall systems, floor/ceiling systems, risers, shafts, ducts, protection of columns and beams, and construction details, also includes a new two-way 90-minute FRR non-loadbearing steel frame wall system with new lining options allowing for a total of three layers as opposed to four layers.

GIB has developed two new systems to help address load-bearing walls within a fire cell that require protection from simultaneous 2-sided fire exposure. We have options for 30 or 60 minutes.

The focus for this edition has been on simplifying and clarifying information to make it easier for designers and installers to use the GIB® Fire Rated Systems manual correctly and efficiently. Additionally, reducing costs of fire rated systems and detailing has also been a key focus, resulting in new systems and details that emphasize our commitment to providing the lowest total cost solutions. Visit: gib.co.nz/systems/gib-fire-rated-systems/

Black beauty

Enhance the beauty of timber with Resene Colour Enhance Japan Black for an easy-to-achieve look reminiscent of Japanese lacquered finishes. There’s no need to sand or strip back the finish – simply add to your chosen Resene clear finish, clean the surface and apply. Resene Colour Enhance Japan Black can be added to these clear finishes: Resene Aquaclear waterborne urethane, Resene Qristal ClearFloor 1K, Resene Concrete Wax and Resene Concrete Clear. View the colour range at your local Resene ColorShop or online at resene.com/colorwood.

Smart and Slim

The Unity Slim Smart Lock offers enhanced security with an improved weather seal, locking in four separate places. With a sleek and stylish slim design, the Unity Slim provides convenient key-free access through a built-in keypad and full control via the Yale Home App. It’s also available in any colour with various handle styles to suit your home.

Visit: assaabloy.com

What you can expect with insurance premiums in 2025

A softer insurance market means commercial insurance premiums have stabilised - good news for NZCB members.

THE CONSTRUCTION INDUSTRY

had another tough year in 2024 battling a reduced amount of building consents, rising costs, and continued labour shortages.

As we track through 2025, however, commercial insurance premiums have started to stabilise. This will help bring some relief to NZCB members.

Commercial

property premiums dropping

Premiums for commercial property insurance in New Zealand began to reduce several months ago. By the second quarter of 2024 we saw costs reduce between 5%–10% compared to last year.

This is due to the insurance market softening, which not only brings lower costs but increased competition amongst insurers.

Larger companies tend to feel the benefit of these price reductions first as they are more desirable for insurers to obtain and therefore benefit from more competitive pricing.

REDi Builders’ Insurance is administered by ICIB Brokerweb and is exclusive to NZCB members. ICIB Brokerweb are NZCB’s preferred insurance broker and operate the NZCB Insurance helpline. They can be contacted on redi@bwrs.co.nz or 0800 644 444 or icib.co.nz

Smaller businesses in low-risk regions who have a good claims record and solid risk mitigation measures will also have an advantage.

Other businesses may take longer to see premium reductions and, in some cases, rates may continue to increase.

Liability and tools insurance

When it comes to insurance for your liability and tools insurance it’s a slightly different story.

We’ve seen some increases of between 5%–10% on tools cover and for liability policies such as defective work and LBP cover.

This is due to the insurers adjusting their rates to factor in inflationary pressures and also with one insurer making enhancements to their policy coverage.

Talk to your broker about structuring a package to make the most of the coverage options.

Commercial motor vehicle premiums

Motor insurance premiums are subject to accident history, repair and parts inflation.

The escalating cost to repair newer vehicles that incorporate windscreen, bumper, and other technology is now becoming a factor. Add general inflation into the mix and claim costs start to increase.

Therefore we expect there will be increasing pressure on commercial motor premiums moving forward.

For those with several vehicles, having good fleet management practices will help to mitigate your risks and reduce your premiums. An example of this is the utilisation of vehicle safety technologies and telematics. These types of measures assist with representing the fleet as ‘better than average’ to insurers.

For those with a good claims record there may be an opportunity to generate competition between insurers for fleets and obtain competitive quotes.

On the home front

In addition to our businesses, we are also of course impacted by insurance costs to our personal property.

The Quashed Quarterly Index (Q3 2024) reported that house premiums

have increased by 17% in the last 12 months, contents by 12%, and private cars by 18%.

Those living in areas subject to earthquakes and severe weather events have experienced even higher increases.

Unfortunately, we expect to see house and contents premiums continue to go up due to the likely increase in catastrophic events related to climate change. More unpredictable weather, such as the large weather bombs we now experience, means a rise in reinsurance costs, which then of course get passed on by insurers to the consumer.

You can, however, manage these increases through mechanisms such as selecting a higher policy excess, seeing if you can get multi-policy discounts and shopping around.

Key takeaways

Here are the key takeaways from these market changes:

u Take advantage of the soft market and increased competition among insurers and see if you can get more competitive rates. Just ensure you are not compromising cover for cost.

u Work with your insurance broker to look at areas for risk mitigation in your business, which will help to reduce your exposures and therefore your premiums.

u Undertake a regular review of your personal policies to see if you can get a better offering on your policy premiums and if a higher excess will work better for you.

Take advantage of the soft market and increased competition amongst insurers and see if you can get more competitive rates. Just ensure you are not compromising cover for cost.

A 5-star customer experience

Building or renovating a home is probably the most expensive and stressful project your clients will ever undertake. Amanda Chisholm describes how to improve the experience for both client and business.

YOUR CLIENTS RELY on you to guide them through the process and explain procedures, timelines and budgets in ways they can easily understand. Providing exceptional customer service is the foundation of repeat business and glowing referrals.

Start with the right clients

Attracting compatible clients and taking them through an efficient sales and onboarding process is the first step to a seamless experience. It’s likely that your leads are talking to at least one, or even two, other builders

My Smart Office can help you get more done in less time. Then you can focus on what matters: growing your business. Amanda Chisholm runs a successful residential building company with her husband and has over 20 years of experience working with customers, sales and marketing, bookkeeping and administration. She started My Smart Office with a mission: to help builders, small business owners, and trades navigate the day-to-day complexities of their businesses.

about their project, so make a good first impression. Take every opportunity to demonstrate your knowledge and experience and to differentiate yourself from the competition. Don’t be afraid to refer people if their project isn’t the best fit for your expertise or business goals. Taking on the wrong client can lead to unnecessary challenges for both parties.

Set clear expectations

Establish a well-defined scope of work and utilise good systems and a robust builders’ software to help you prepare a detailed and accurate estimate or quote. Always present your proposal in person, so your clients have the opportunity to understand what your proposal covers, and equally importantly, what it doesn’t cover. Your honesty, transparency and professionally presented proposal will be a key tool for setting you apart from your competition. Be upfront about potential variations and explain how changes will be handled. Under-promise and over-deliver by setting realistic timelines for completing tasks, communicating updates and requesting client decisions or selections.

Plan logistics like a pro

Utilise project management software to provide regular updates on progress, schedules and budgets. Tools like Gantt charts and work-in-progress reports can help clients understand timelines and costs, building their confidence in your expertise. Work with reliable suppliers and subtrades who can meet deadlines and budgets, deliver to a high standard and offer your clients expert advice if needed.

Communicate consistently and clearly

Regular and transparent communication is the backbone of a 5-star customer experience. Schedule check-ins through email, site meetings or a dedicated

project app to ensure everyone is on the same page. Address unforeseen issues early, providing clear solutions and timelines for resolution. Document key decisions and agreements and follow up verbal conversations with a summary email to ensure clarity, record agreements and help resolve conflicts if they arise later.

Operate with integrity

Upholding ethical standards and legal obligations builds trust and confidence. Comply with building contracts, issue valid payment claims and provide all the required documentation. If an issue arises due to an error or oversight, taking ownership and offering a sincere apology will go a long way to maintain trust and goodwill. Remember to close out the project by ensuring the Practical Completion documentation is completed promptly and by providing the Producer Statements and records of work for the project, so Code of Compliance can be submitted. Meeting your obligations efficiently helps ensure timely payments and reassures clients that you’re operating professionally and transparently.

Stick to timelines

Building a home can be an emotional rollercoaster for your clients and there is potential for conflict as their stress increases. Proper planning and scheduling helps them coordinate their finances and busy lives around the building process. Clients are more understanding when they feel informed and see proactive efforts to stay on track. Delivering a 5-star customer experience relies on trust, transparency and teamwork. Satisfied clients represent more than one completed projectthey’re a doorway to future business and referrals. By prioritising exceptional customer service, you’re setting your business up for long-term success.

AMANDA CHISHOLM

My Smart Office

Supercharge your service with the right software

The right software can boost your customer service and give you the competitive edge — so crucial in the trades industry in Aotearoa.

KELLI BEAUMONT

FreeUp/Released

FreeUp/Released is a NZCB National Partner (Starter) and tech advisor for builders – making the process quick and easy, from selecting the right software to setting up the system to training staff. FreeUp/Released also operates the NZCB Technology and Software helpline for members. Contact us at 09 887 9950 or hello@freeup.co.nz or visit freeup.co.nz

THE TRADES AND construction industries are competitive. But you already knew that. In a world where each customer has myriad options to choose for their projects, it’s strong customer service that will make you stand out.

Professionalism, punctuality and communication will bring repeat business, referrals and a good reputation. And the right job management software, used well, will ensure the best delivery of these to your customers.

A SUITABLE SOFTWARE STACK CAN:

u Get your scheduling on point

Ever bungled your scheduling and double-booked, letting one of your clients down? Are you constantly delayed because you didn’t schedule enough time for the previous job? These are common pain points for tradies – and their customers.

Job management software (JMS) addresses these issues by providing a centralised platform to schedule and assign tasks. With real-time updates, you can ensure that your team is always in the know and able to be in the right place at the right time. Some software can even help you to more accurately estimate time needed for each job and create the most efficient schedules.

u Dial in your comms

Good communication is the foundation of excellent customer service. JMS often includes communication tools that keep

everyone, from office staff to field workers and customers, on the same page.

We’ve sung the praises of automation features before and one of our favourites is the option for automated notifications that include appointment confirmations, estimated arrival times, or job progress. This transparency helps build trust and reduces the number of calls from clients seeking updates. When team members have access to all necessary job details via their mobile devices, they are more likely to arrive prepared and informed.

Additionally, the software streamlines the invoicing process to enable faster billing and easier payment options for clients. Some platforms even allow for instant online payments, making the entire experience more seamless for both you and your customer.

u Achieve people-pleasing accuracy

Your customers like to know what to expect. Inaccurate quotes and scheduling mistakes do not contribute to a good experience.

When you find a job management software that suits your operations, it’ll be much easier to create accurate, professional quotes based on real-time data, such as labour costs, materials, and project scope. Customers are more likely to trust a business that provides clear, transparent and accurate pricing.

Additionally, the software streamlines the invoicing process, enabling faster billing and easier

TRADIE

payment options for clients. Some platforms even allow for instant online payments, making the entire process seamless for both the business and the customer.

u Track your successes and build on them

The best way to improve your customer service is to learn from the past – not just your mistakes, but your trends and data. The right JMS will help you to course correct and improve on an individual project, as well as tracking your progress on a larger scale to inform your planning and decision-making.

Data is a valuable asset for a business owner and when you have a software overseeing the majority of your operations, you’re collecting

precious information, more or less, as a byproduct. Take advantage of it to improve your processes.

Having your systems humming along nicely and efficiently can also reduce costs, save time, and minimise stress. What’s not to like?

Let’s get started

The FreeUp team can get you set up for success with the job management software that works best for your business.

Their sister company, Released –a trades-focused virtual business support agency – is available to help with customer service tasks that fall outside the scope of what software can do – inbound and outbound calls, scheduling, invoicing, and more.

The best way to improve your customer service is to learn from the past – not just your mistakes, but your trends and data.

Trust a Resene Eco.Decorator to do your job just

When it comes to your decorating projects it helps to know you’ve got the right painter for the job as well as the right paint. So when you choose the services of an approved Resene Eco.Decorator you can be sure that the paintwork will be just as good as the paint.

Key financial drivers for your business

Do you know the key financial drivers for your business? Do you review them monthly and compare them to best practice? Wouldn’t it be useful to have some objective way of checking the health and performance of your business and know where to tweak it for better results?

ANDY BURROWS Director of The Trades Coach

Andy Burrows, Director

of The Trades Coach and NZCB National Partner (Starter).

I encourage you to take advantage of a free business strategy review session to see how we can improve your business performance. Call Andy today on 027 688 6721 or email andy@tradescoach.co.nz.

AS WE APPROACH the end of another financial year you may be starting to prepare your books for your accountant to produce your year-end financial and tax statements. If you have been monitoring your management accounts monthly, you should have a pretty good idea of where you stand. Also, by monitoring the key numbers regularly, you will have had several opportunities to make improvements to your company’s performance over the past 11 months. This is about having better financial control over your business.

Note that financial control is different to the business bookkeeping system. Bookkeeping is about recording the figures while financial control is about managing the money and making the numbers work better for you and your business. A good financial management system helps you meet your daily financial objectives and future goals and targets. This means that the system helps you become a better manager by enabling you to:

u Manage in a more proactive manner

u Borrow money more easily due to the possibility of being able to plan ahead for financing needs and set a budget which can assist in the loan approval process.

u Provide financial planning information for shareholders.

u Make your business more

profitable and efficient.

u Assist in major decision making processes affecting finances

u Avoid investing too much money in the wrong areas.

u Set and monitor sales goals

u Improve gross profit margin by pricing your services more effectively or by reducing supplier prices, direct labour, etc.

u Help with tax planning.

u Plan ahead for team incentives and benefits.

In developing better financial management control, you do not need to become an accountant. It’s similar to driving your vehicle down the road. You are probably not a qualified mechanic, but you have a dashboard to look at from time to time that tells you how your vehicle is going. Do you have enough gas? Are you going too fast? Are there any red lights blinking you need to take action? You need to develop your own financial dashboard for your business so you can monitor your performance and adjust quickly. It’s no use waiting for your accountant to send you your annual accounts. That’s like driving a vehicle by looking in the rear-view mirror.

For help in identifying your key financial drivers book a free financial analysis and strategy review. Check out my website for more offers of assistance and what co-funding is available from MBIE.

With Yale Home App

Growth points

The forecast is for growth, but the key to maintaining that, writes Jason Dinan, is smart preparation.

THE CONSTRUCTION INDUSTRY in New Zealand is set to return to growth in 2026, according to the MBIE’s National Construction Pipeline Report. The key to thriving lies in preparation.

In the first of a three-part series, here are some tips to help construction companies gear up for the anticipated upturn.

With 30 plus years of global leadership experience working over international cities, Jason specialises in growing organisations through developing high-performance leaders, teams and strategy. He was the project head for a leading home builder in New Zealand, Australia and North America, helping grow annual sales from 47% to 311%.

Audit and streamline processes

Start by conducting a thorough audit of your current systems. Assess workflows, project management, communication channels and reporting

mechanisms to identify inefficiencies or bottlenecks. Are delays in approvals causing project hold-ups? Are reporting systems outdated or cumbersome?

Once gaps are identified, streamline processes to improve efficiency. For example, integrating cloud-based project management tools can enhance collaboration and keep all stakeholders updated in real time.

Enhance team communication

Effective communication is the backbone of any successful business. Misunderstandings or breakdowns can lead to costly delays, missed deadlines,

JASON DINAN

Executive Coaching & Consulting. With three decades of leadership experience.

and frustrated teams.

Consider using Extended DISC assessments to evaluate communication styles in your business. By understanding how your team interacts, you can minimise conflict and improve collaboration.

Clarify your vision, purpose, and values

A clearly defined vision, purpose and set of values provide your business with direction and unity. They serve as a guiding compass for decision making and help align teams with the company’s goals.

Take time to articulate your vision for the future. Define your purpose: what sets your construction company apart and why clients should choose you?

Establish values that reflect the culture you want to build, such as integrity, innovation, or sustainability.

Once defined, communicate these to your team, ensuring the vision, purpose, and values are reflected in your daily operations and processes.

Invest in scalable systems

Preparing for growth means implementing systems that can handle increased workloads.

For example:

u Project management software: Software tools can centralise project information, improve scheduling, and provide real-time progress updates.

u Automation: Automate repetitive tasks such as invoicing or compliance tracking to save time and reduce errors.

u Data analytics: Use data to track performance, identify trends, and make informed decisions.

Align your people with your goals

A well-aligned team is critical to implementing improved systems and processes. Begin with goal setting to ensure everyone understands their role in achieving the company’s objectives. Set goals for both individuals and teams.

Continuous improvement through reflection

Strengthening systems and processes is not a one-off task. Build in regular reviews to assess what’s working and what needs adjustment. Weekly or monthly check-ins can highlight inefficiencies early and provide opportunities for refinement.

Encourage feedback from your team on how systems are performing and use their insights to make improvements.

A culture of continuous improvement ensures your business remains agile and ready for change.

Take the first step: free strategic audit

By auditing your systems, enhancing communication and investing in scalable solutions, your business can build the resilience needed to thrive during the coming upturn.

To take the first step, book a free half-hour consultation for a strategic audit today. Email me at jason@excc.co.nz

A healthy march to success

Build Your Own Health & Safety Manual with NZCB Learn.

HINTZ Education and Events Manager

THE START OF 2025 is a great time to make sure you and your team is set up for success for the year ahead.

One of the most valuable things you can do to get things off on the right foot is putting together a Health and Safety Manual that works for you.

There are plenty of health and safety resources out there but you need something that is tailored for you and your team. That’s why NZCB Learn has developed the “Build Your Own Health and Safety Manual” course –a step-by-step program to help you create a tailored, dynamic manual that: u Focuses on the practices and policies that genuinely apply to your operations.

u Grows with your business and remains relevant over time.

u Is both practical and easy to implement in your daily work.

How the course works

The “Build Your Own Health and Safety Manual” course breaks the process into manageable sections, focusing on key health and safety areas.

After completing each section, you’ll gain access to downloadable, editable PDF templates. These templates allow you to immediately start building your manual. Every form and template is clearly explained, helping you understand its purpose and how to apply it effectively in your business.

By the end of the course, you’ll have a customised, professional Health and Safety Manual ready for immediate use. Your manual can also be branded with your business logo at no extra cost, giving it a professional and personalised touch.

If you need extra guidance, NZCB offers specific health and safety training.

Whether delivered online, in person, or through eLearning, these sessions can help you and your team understand and implement best practices.

Get started now

Visit the ToolShed to self-register for “Build Your Own Health and Safety Manual” and begin creating your manual today.

A tailored health and safety manual is not just about ticking boxes for compliance. It’s a practical tool that protects your team, reduces risks, fosters a culture of safety and professionalism, and gives you peace and mind that you’re doing everything you can to keep everyone safe at work.

The NZCB Learn platform is available exclusively to NZCB members, and it brings flexible learning to you. Access it via the NZCB Toolshed and find a range of day courses, online learning and health and safety resources. If you need extra support or have questions, email learn@nzcb.nz or call Marcie Hintz on 021 365 947.

MARCIA

GOODBYE STAPLES!

Say, “Hello” to RAINARMOR, our new self-adhesive, all-purpose, wall & roofing underlay.

In The Loving Memory of Staples

(1866 - 2025)

Thank you for your service, but there’s a better way now.

Make the switch to RainArmor Self Adhesive

For technical and product information contact our Technical Team | 0800 806 595 or visit www.thermakraft.co.nz

Builders no longer need to use staples to apply their underlays where rigid air barrier (RAB) boards are used. Developed by our New Zealand team, RainArmor Self Adhesive will give you a new and innovative method of adhering your underlays.

Mindfully making the day for you

Investing in mental wellbeing starts with the 5 S’s – sleep, start, sustain, stop, socialise.

live-well-build-well.com

JUST AS WE can become physically fitter, we can also build mental strength. That’s the message behind Live Well Build Well, a nationwide wellbeing programme that’s helping builders and tradies to manage the ups and downs of residential construction.

“The research shows that small, everyday changes in how we think and what we do to keep well add up to huge gains in our mental health,” says programme leader Rafael Caso. “The

main idea is that people invest in their wellbeing every day so they have plenty to draw on when the going gets tough. That way we can still thrive no matter what life throws at us.”

Raf has been giving toolbox talks to pass on mental fitness skills and strategies at workplaces and businesses around the country. One approach that Live Well Build Well recommends is planning out each working day according to the 5 S’s. Here’s how it works.

Waihanga Ora Live Well Build Well. Our goal is to increase mental and physical wellbeing across the residential construction sector. We are a community where tradies lead the conversation of what wellbeing means to them and share their own personal stories on how they overcame tough times to inspire and educate their peers.

RAFAEL CASO Live Well Build Well

1 SLEEP

Make sure you have the right quality and quantity of sleep before you start work. Most of us need 7-9 hours of sleep each day to give our bodies a chance to repair and re-energise for the next day. Without the right amount of sleep, you won’t function at your best.

2 START

Our brains love certainty so plan out each day with clear intentions of what lies ahead and what’s needed to be your best self. Prioritise the things you can control. List out what needs to be done, make a plan about what to attack first and break down the work into achievable amounts so you’re not overwhelmed.

3 SUSTAIN

Manage your energy levels carefully throughout the day. Make sure you eat properly and hydrate to keep the body ‘fueled up’. Schedule breaks and micropauses during the day to recharge physically and mentally and maintain a good headspace. Taking time to slow down like this re-focuses your thinking and makes you more productive. Think in ways that keep things in perspective and help boost your mood.

4 STOP

Switch off from work at the end of the day and maximise your recovery time. Make sure you set aside some quality time each weekend to do other things you enjoy such as sport, hobbies or catching up with friends. You’ll come back to work feeling fresher and more motivated.

5

SOCIALISE

Tap into your wider social networks and have a quality life outside of work. Make sure you have a good support crew to help you unpack your day. If you keep every work challenge inside your own head, life soon becomes overwhelming, so don’t bottle things up. Getting things off your chest with family and friends relieves stress.

You can also help others doing it tough, simply by being a good listener. You don’t need to provide answers, just providing a friendly ear is a huge help for someone feeling ‘under the pump’.

Mental Fitness Works

A recent survey of 1,122 builders and tradies showed Live Well Build Well’s impact on the industry:

The average level of wellbeing among workers (as measured by the WHO-5’s 25 point wellbeing index) has increased almost a whole point from 15.5 in 2023 to 16.4 in 2024. A score below 13 indicates poor well-being.

The proportion of workers reporting poor emotional wellbeing decreased from 25%-18% in the last year.

Raf says: “It’s really encouraging that residential construction workers are taking more action to improve their wellbeing. The most important part of staying mentally fit is to make your own wellbeing a priority, no matter how busy the week gets. Make time for activities that help you de-stress and recharge your batteries. The 5 S’s are a great way to power up your mental fitness.”

To find out more, visit livewellbuildwell.com and follow Live Well Build Well on socials.

Navigating wellbeing advice in a digital world

A new hub, offering physical, emotional and workplace wellness, promises clarity for workers.

EAP Services (Employee Assistance Programme) provides wraparound mental health support for the emotional, social, and practical needs of your team. Our services are delivered by a multidisciplinary team of counsellors, personal trainers, physiotherapists, advisors and educators. EAP ensures that your team receives comprehensive care, tailored to their unique circumstances. As an employee assistance provider, it is our goal to empower people to achieve stable, fulfilling lives, making it a vital component of any workplace wellness programme.

FINDING TRUSTWORTHY ADVICE on physical and mental wellbeing online can be challenging. With the rise of AI-generated content, determining the reliability and source of information has become even more imperative.

In trade industries like construction, physical demands and workplace pressures make staff wellbeing a foundation of safety and productivity.

To help with this, EAP (Employee Assisted Programme) Services and Habit Health have developed the WellbeingHub, a comprehensive resource to support physical, emotional, and workplace wellness.

Whether it’s managing personal health and fitness or fostering healthy workplace relationships, the WellbeingHub provides information and tools that can help tackle challenges before they become overwhelming.

The WellbeingHub has been developed by our team of experts to ensure integrity, accuracy, and relevance for your team.

Benefits for your team

 Broad resources, covering a wide range of topics to address diverse needs.

 Engaging multi-format content, designed to be accessible and engaging for workers, whether they’re in the office or onsite.

 Support which is accessible and available when the time is right.

 Clinically backed, reliable and reputable advice from trusted sources.

 Resources tailored to New Zealand work culture.

Benefits for your business

Encouraging the use of the WellbeingHub provides you with a proactive way to identify and address common challenges for your team. With insights on what help is being sought, you can build a tailored wellbeing programme that empowers your team to thrive, at work and at home.

We can offer custom versions of the WellbeingHub, tailored with your branding and industry-specific articles to align with your unique needs.

The WellbeingHub also integrates seamlessly with our habithealth+ app, delivering deeper insights and resources at no additional cost under an annual membership fee.

Easy access for your team

If you’re interested in accessing the WellbeingHub for your team, alongside our employee assistance programme, visit eapservices.co.nz to request a quote, or contact us at accountmanagement@eapservices. co.nz

If you’re already a member of EAP Services, you can access the WellbeingHub now.

Visit: eapservices.co.nz/wellbeing-hub to find out more.

The WellbeingHub provides information and tools that can help tackle challenges before they become overwhelming.

From the regions



Beers, burgers and banter

Last year, NZCB members had some fantastic opportunities to connect with their colleagues around the country through their regional ‘Beers, Burgers and Banter’. These are more than just catch-ups down at the pub — they’re an important way for us to strengthen relationships, exchange ideas and support one another in what’s often a demanding industry. A big thank-you to everyone who joined us in 2024 and made these evenings such a success. 2025 is shaping up to be another exciting year for our region. We kicked

things off in February with a Beers, Burgers and Banter regional mingler event and more are scheduled in April, June, August, October and November. They’re the perfect way to enjoy good conversation and make new connections.

Details for all upcoming events will be shared, so keep an eye out.

Here’s to a successful and connected 2025.

Paul Webster-Young Auckland Regional President

 Golf Day fundraiser

The NZCB’s Waikato Charity Golf Day was a huge success in October last year, raising $6500 for Rainbow Place, which provides free support for children and young people with advanced or incurable life-limiting conditions.

Held at Ngāruawāhia Golf Club, teams of four players competed in an ambrose format match. One of many fundraising golf days around New Zealand, where regions raise money for a chosen charity, NZCB Waikato is grateful to all those who were involved and attended and looks forward to seeing you all back in 2025.

NZCB members enjoy community-boosting events.

Playing it forward - participants in NZCB’s Waikato golf fundraiser.

WAIKATO

Your Building & Trade Partner

Dedicated account managers and over 60 stores nationewide

National Projects Manager: Hany Doss Phone: 021 617 042 hany.doss@twgroup.co.nz

Building & Trade Sector Lead William Mills Phone: 022 075 8384 william.mills@twgroup.co.nz

Auckland North: Emma Nightingale Phone: 027 340 9996 emma.nightingale@twgroup.co.nz

Auckland + Hamilton: Leon Liao Phone: 021 342 535 lean.liao@twgroup.co.nz

Central North Island: Michael Vincent Phone: 021 315 274 michael.vincent@twgroup.co.nz

South Island: Nathan Driscoll Phone: 021 198 8759 nathan.driscoll@twgroup.co.nz

Paint pivots

Innovation and collaboration are at the heart of new product advances.

The good oil

Engineered laminated timber was, and remains, a superb product and a building element that allows flexibility of design and is comparable to structural steel but with significant environmental benefits.

However, like all timber-based products it’s susceptible to damage caused by water, UV light and mould if left unprotected. Steel fabricators generally finish steel by applying a “shop primer”.

Use the free Resene Ask a Paint Expert service online, www.resene.com/ paintexpert, or visit your Resene ColorShop for helpful and trusted advice on paints, wood stains and colour and more.

Unfortunately cost rather than quality or fitness for purpose is the determining factor behind selection. For important jobs, the ‘shop primer’ choice became part of the finishing system designer’s scope. The same control needs to be exerted by the architect over ‘temporary protectants’ for engineered timber.

There are a variety of different technologies available for such protectants and these should be chosen with the finishing system in mind – and

probably a supplier’s guarantee that the protectant used will be compatible with the intended finishing system. It can be extremely expensive to remove (if it is indeed technically possible) a deeply penetrated incompatible coating.

The most problematic protectant technologies are those predominantly based on mineral oil: indeed, we will not guarantee any of our standard systems over such mineral oil-based protectants.

Wood stains were once designed to form a more durable film on top of the wood to protect it from the elements. While marine varnishes still successfully use this concept, the paint industry pivoted from products forming a surface film to products that penetrated into the timber.

Any liquid that coherently spreads over, or into, a surface, forms a film – the chemistry of that liquid then determines whether that liquid or as is the case with paint and stains “dries”. Such stains, which represent most products available today, can be properly described as penetrating stains.

Mineral oil, or paraffin oil as it is also known, has no mineral content – despite its name – and is simply a petrochemical derived hydrocarbon with virtually no reactive chemistry. It remains liquid until UV light breaks it down. Its very name comes from the Latin parvus affinus meaning ‘little affinity’.

Mineral oil has low-surface energy, making it penetrative and, as a hydrocarbon, water resistant. However, nothing will stick to it and it can only be over-coated by itself. Once used, it is almost impossible to remove.

As a result, the wider New Zealand paint industry does not recommend the use of mineral oils, or products predominantly based on this technology, as short- or medium-term protective coating for laminated timber products.

Bubble and trouble

Blistering is the formation of round “bubbles” of paint film. The cause is always moisture related:

u Excessive moisture coming through: When humidity seeps from a room with very high humidity, such as a bathroom or laundry.

u Exterior paint is applied over a damp or wet surface: If paint is still in the drying phase, blisters may appear during periods of rain or heavy dew.

These issues are more common in solvent-borne or alkyd paints due to the vapour barrier that forms as they dry, trapping moisture on the wall beneath the paint. As the paint dries, that moisture will escape, lifting the paint off the wall as it evaporates. Acrylic paint is more permeable – it allows a small amount of water vapour to pass through as it dries and all but eliminates the chance for these types of blisters to form.

However, there is one form of blistering that affects waterborne paints. It occurs when the paint is subjected to excessive amounts of moisture, causing the paint to swell and break its adhesion to the substrate, and blister. After the paint has been exposed to the elements, rain and other moisture will typically have “leached” water soluble components from the paint.

Paint containing small blisters (less than 6mm across) due to swelling often recovers after drying out. When larger blisters form the adhesion of the paint is often weakened and peeling can happen.

To avoid blistering, apply acrylic paints at specified spreading rates and ensure they have plenty of time to dry before dew or rain strikes.

Peeling

Peeling paint is nearly always the result of poor surface preparation and in many cases is the result of poor surface preparation by the previous painter.

New paint is likely to make it slightly worse due to the stresses imparted as the new paint coating dries.

Adhesion can be easily tested using the tape test.

Tape test

Thoroughly clean the test area. Use a sharp razor blade or putty knife and cut a small ‘X’ shape on the surface in the area you wish to test. Carefully apply half of a clean 4cm strip of tape to the cut area. Ensure the tape is firmly adhered. Hold the free ends of the tape at right angles to the test surface and yank it off with a sharp pulling movement away from the surface. Observe the removed tape for old paint and stain. If paint is easily pulled off, the adhesion of that coating must be considered suspect.

Peeling is an adhesion failure whereby the paint film peels away from the surface. There are two types of peeling:

u Total film failure back to bare surface (all coats are peeling)

u Inter-coat failure (one or more coats separate from a lower coat)

There are several possible explanations for a paint job that fails due to peeling. The failure can be the result of inadequate surface preparation in not:

u Adequately sanding the old hard surface of an old paint to provide a good key for adhesion

u Removing greasy contaminants from the substrate

u Removing underlying loosely bound substrate contaminants such as wind blown dust and dirt or mould

u Removing old paint degradation in the form of chalk

u Removing substrate breakdown products such as:

l Weathered timber fibres

l Old powdery weathered concrete

l Efflorescence on concrete

l Metal corrosion products

Peeling can also be caused by applying the paint under conditions that hinder good film formation (very cold, hot or windy weather). The cause may be a combination of these factors. In situations involving many coats (more than 3-4) or old, solvent-borne paint, repainting can result in adhesion loss by the old paint and subsequent peeling. Complete removal of the old and brittle layers of paint is recommended.

NZCB Strategic Partners

New Zealand Certified Builders (NZCB) would like to thank our Strategic Partners who play a vital part in assisting to cover costs for our members’ personal development and training through NZCB regional seminars, NZCB Annual Conference and monthly live Zoom webinars. Their support also assists to cover expenses with our marketing and communications.

NZCB Affinity Partners

NZCB is proud to partner with the following companies, who are aligned with the Association to bring our members discounted services and products.

More information on these services and products can be found under the Member Benefits section, on the NZCB members-only Toolshed website, nzcb.nz/members/member-benefits/ or by contacting Linda Moody at linda@nzcb.nz

NZCB National Partners

New Zealand Certified Builders (NZCB) is proud to partner with the following companies who align with our Association and give NZCB members access to a wealth of expertise and support throughout New Zealand.

NATIONAL PARTNERS (PREMIUM)

APL Window Solutions aplnz.co.nz

Carters carters.co.nz

Comfortech Building Performance Solutions pinkbatts.co.nz

Enveloped Solutions Ltd enveloped.co.nz

MiTek New Zealand miteknz.co.nz

PlaceMakers placemakers.co.nz

Red Stag Timber redstag.co.nz

Resene Construction Systems reseneconstruction.co.nz

NATIONAL PARTNERS (PROFESSIONAL)

ASSA ABLOY Opening Solutions New Zealand assaabloy.co.nz

Milwaukee Tool New Zealand milwaukeetools.co.nz

Outdure Decking Systems outdure.co.nz

Resene Paints Ltd resene.co.nz

Sika (NZ) Ltd nzl.sika.com

NATIONAL PARTNERS (STARTER)

Abodo Wood Ltd abodo.co.nz

Altus NZ Ltd altus.co.nz

Bowers Brothers Concrete Ltd bowersbrothers.co.nz

Builda Price (2016) Ltd buildaprice.co.nz

Connected Spaces connectedspacesjoinery.co.nz

CS Cavity Sliders cavitysliders.com/nz

CSR Building Products (NZ) Ltd csr.co.nz

FMI Building Innovation aslnz.co.nz

FreeUp/Released freeup.co.nz

Futurewood futurewood.nz

GCH Aviation Ltd gchaviation.com

Glass Vice Products glassvice.com

Green Light Escrow greenlightescrow.co.nz

Hirepool Ltd hirepool.co.nz

HomePlus homeplus.co.nz

Independent Building Supplies ibs.co.nz

James Hardie New Zealand jameshardie.co.nz

JSC Premium Architectural & Building Solutions jsc.co.nz

Kingspan Thermakraft Ltd thermakraft.co.nz

KLC Ltd klc.co.nz

Kopine kopine.co.nz

Laminex New Zealand laminexnewzealand.co.nz

Marley New Zealand Ltd marley.co.nz

Marshall Innovations Ltd mwnz.com

Masada masada.co.nz

Metro Performance Glass metroglass.co.nz

My Smart Office Ltd mysmartoffice.co.nz

Open2view open2view.co.nz

Pacific Steel (NZ) Ltd pacificsteel.co.nz

Paslode New Zealand paslode.co.nz

Pro Clima New Zealand Ltd proclima.co.nz

Productspec Ltd productspec.net

Proven Systems Ltd (DVS) dvs.co.nz

Rave Build Management ravebuild.co.nz

Red LBP Ltd redlbp.co.nz

Red QS Ltd redqs.nz

Rosenfeld Kidson & Co. Ltd rosenfeldkidson.co.nz

Schneider Electric pdl.co.nz

Simx Ltd simx.co.nz

Soudal Ltd soudal.co.nz

Superhome Movement superhome.co.nz

Unicom Security unicomsecurity.co.nz

Viking Roofspec vikingroofspec.co.nz

Warmup NZ Ltd warmup.co.nz

Your QS Ltd yourqs.co.nz

Proudly locally owned.