April May 2016

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

April/May 2016 — Success Through Change Conference Pg 10

NZCB Partner with Houzz Pg 36

Centrespread —

NZ Carpentry Apprentice Challenge Regional Winners Pg 24

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2

IN THIS ISSUE

As we all know the industry is experiencing boom times with plenty of work around for all. Our customers are accepting that they might have to wait for a team of tradesmen to do their job. Booking for inspections is getting harder too as Councils are stretched to get through increasing workloads. I feel that in these situations an LBP should be able to sign off on minor work just to keep the project moving.

Message from the Chair

1

From the Operations Desk

3

Toolbox Seminars

4

Feature: Xero in Five Questions

7

Feature: Health and Safety Regulations Released

8

Certified Plans

9

This is the last message from me. I will be stepping down at Conference after 8 years on the Board. It has been a great journey for me personally. I have gained a huge amount of knowledge, met some memorable people and often stepped outside my comfort zone.

The Association has gone through some significant changes over my time and I am proud to have been part of the decision making progress as we continue to grow into a strong and professional group.

I see a great future for NZCB. Our industry leadership will strengthen, we will introduce new and innovative ideas to help our members and we will continue to contribute to the wider industry. Membership numbers will increase as non-aligned builders realise that belonging to our Association can only benefit their businesses and our training programmes will get bigger and better. All positive stuff.

Feature: Success Through Change Conference 2016

10

Feature: Business Fundamentals

17

Centrespread: Many Tales to Tell

32

Centrespread: Many Tales to Tell

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Centrespread: Many Tales to Tell

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In closing I would like to thank you all for your support and encouragement over the years, I have enjoyed my time on the Board, particularly as your Chairman.

Centrespread: Many Tales to Tell

2016 NEW ZEALAND Centrespread: ManyAPPRENTICE Tales to Tell CARPENTRY CHALLENGE Centrespread: Many Tales to Tell

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All the best for your building futures and see you at Conference.

ITAB

28

Feature: NZCB Partners with Houzz

36

From the Media

38

Feature: Non-compliant building products

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32 32

Feature: Take the lead on Health and Safety

41

Quiz the Grey Matter

48

Message from the Chief Executive

49

Dave Brown Chairman Contact: Farming House 102-104 Spring Street PO Box 13405, Tauranga Central, Tauranga 3141 Phone: 07 927 7720 Freephone: 0800 CERTIFIED Fax: 07 927 7721 ISSN 2463-3305

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MESSAGE FROM THE CHAIR —

It’s exciting times for Certified Builders, or NZ Certified Builders Association as we are now called. The rebranding meetings around the country have been well attended and everybody has been positive about both the brand change and the new Guarantee. Grant has done a fantastic job presenting these.

CARTERS HAVE BEEN PARTNERING THE BUILDING INDUSTRY FOR OVER

150 YEARS

AND WE’VE GOT THE COUNTRY COVERED WITH A NATIONWIDE NETWORK OF

50

ALL ACTING TOGETHER TO MAKE THE BUSINESS OF BUILDING EASIER WITH

BRANCHES

1

ACCOUNT

IT ALL ADDS UP TO BUILDING WITH

0

HASSLES

Talk to us today about how partnering with Carters can make the business of building easier for you.

MOBILE SCAFFOLD TOWER

AJJA 5000 SERIES

New Zealands Most Affordable 5.0mtr Scaffold Tower.

Frames

NOTICE OF ANNUAL GENERAL MEETING NEW ZEALAND CERTIFIED BUILDERS ASSOCIATION INCORPORATED

. Built from 2.0mm 6061 T6 aluminium . Fully welded for maximum strength & Lifetime guarantee on welding

Platforms all aluminium frames complete with anti slip plywood

. 400mm transom centres . Integral ladders built into the end frame for safe access

Notice is hereby given that the Annual General Meeting of New Zealand Certified Builders Association Incorporated will be held on Friday 27th May 2016 commencing at 9:00am in Plenary Room, Shed 6, Queens Wharf, Wellington.

AGENDA

. Complies to Australian & New Zealand Standard AS.NZS1576:1995

1 Welcome and Apologies Braces are self locking Colour coded for easy I.D.

2

Minutes from last Annual General Meeting 23rd May 2015

3 Chairman’s Report 4 Chief Executive’s Report 5 Presentation of the Annual Financial Report for the year 2015

$3695.00 inc

6 Announcement of Directors of Board Tough, adjustable 200mm castors with brake

Ph 0800 360 009

7 Special Business (if applicable) 8 General Business

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ASSOCIATION NEWS —

FROM THE OPERATIONS DESK Project management verses site supervision.

Site supervisor: [also known as construction management]

The diversity of how our members apply contracted services continues to challenge our suite of building contracts, just recently I had the scenario of a sub contracted labour only with overall project management of the site.

Appointed by the client or project manager the site supervisor manages the construction of the project, they do not have any direct commercial interest in the work carried out, such as directly paying the sub-contractors and so neither benefits, nor suffers from the contractual risks between the client and sub-contractor. The site supervisor simply coordinates the traffic of trades and supplies, construction methods, but not the quality of trades and materials.

To do this they would need to have this ability imposed on them by the client through a contractual arrangement and in turn handed down through to the sub-contractors through “terms of engagement”.

My initial thought was why would anyone take on the liability of managing a project with trades and supplies which they would not have any quality assurance control over. The sub contracted builder neither chose nor had any contractual connection to other trades and suppliers i.e. no terms of engagement. I assumed our member was probably the most qualified in the contractual chain to take this role on, in this particular situation. The picture became clearer, when I thought back across similar conversations I’ve had with members where they were not actually project managing, but simply coordinating services on site i.e. site supervision. To identify the difference in liability and skills set, let’s take a look at the definition of each role.

Most managed labour only situations will fall into this definition of site supervise, be very selective with the title you give yourself when engaging in managed labour only contracts.

Project management: The selected project manager sits alongside the client and assumes the role of the client in the project where the client lacks the technical or organisational skills for the task, or simply chooses to have someone else assume this role. A project manager holds the ability to prepare a brief and/or scope of works, appoints and prepares consultants and sub-contractors for residential projects.

The project manager becomes responsible for meeting the client’s brief of the project, they deliver this through varying responsibilities and skills such as: - Preparing of consultants briefs - Negotiating and documenting of conditions of engagement

Jason McClintock Operations Manager

- Supervision of documents - Implementation of programmes - Contract financial control - Overseeing quality assurance programmes As well as other responsibilities.

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TOOLBOX —

HEALTH AND SAFETY TOOLBOX SEMINAR The intent of the Act is for us all to be looking out for our mates, we can do this by engaging with others and sharing our knowledge of what working safe looks like.

We experienced fantastic turn outs to our last round of ToolBox Seminars “Connecting the dots”. Health and Safety is a difficult subject to take on the road, with more grey areas than black and white. Builders are more accustomed to clean cut answers when working within the building industry. To try and bridge this gap we had WorkSafe New Zealand inspectors at each venue, their engagement ranged from very informative and most helpful to what I can only describe as some inspectors demonstrating a limited state of knowledge regarding the reform.

I wish to extend a big thank you to my team at Support Office who worked very hard to get the message of H&S into the regions. Shane Ririnui delivering the message in the North, Nick Matthews in the South and Cheryl Miller in Support Office ensuring a good venue and complimentary food, as well as driving the meeting notices, text and RSVP. And of course a big thank you to ITM who came on board as event sponsors. - Jason McClintock, Operations Manager.

Here are several topical questions members asked at the Seminars…

Q If the homeowner is engaging trades directly and acting as the head contract, do they have any responsibilities?

A If they are not living in the dwelling where work is being done then they are deemed a PCBU. Q I’m a self-employed apprentice, where do I sit in the chain of responsibility.

A As a self-employed person you are conducting a business and therefore assume the role of PCBU. Q Does a worker have a level of self-responsibility if they chose not to wear PPE and get caught by a WorkSafe inspector?

A If a worker is found not to be wearing PPE the question will be did the employer provide and educate in the safe use of the equipment?

Does the employer or company have rules or policy about the use of PPE which has been made clear to the employee? If so the worker has taken it upon themselves not to protect themselves in line with company expectations, and will be liable personally under the Health and Safety at Work Act.

Kindly sponsored by:

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BUILD QUALITY

Seminar sponsor:

DATE JUNE 2016

DAY

NORTH ISLAND TIME

CITY

20 June

Monday

5:30pm Light Refreshments 6pm Start

Whakatane

21 June

Tuesday

6:30pm Light Refreshments 7pm Start

Cambridge

22 June

Wednesday

6:30pm Light Refreshments 7pm Start

Rotorua

28 June

Tuesday

6:30pm Light Refreshments 7pm Start

Tauranga

04 July

Monday

6:30pm Light Refreshments 7pm Start

Whangaparaoa

05 July

Tuesday

6:30pm Light Refreshments 7pm Start

Wellsford

11 July

Monday

5:30pm Light Refreshments 6pm Start

Taupo

12 July

Tuesday

6:30pm Light Refreshments 7pm Start

Hamilton

18 July

Monday

6:30pm Light Refreshments 7pm Start

Wellington

19 July

Tuesday

5:30pm Light Refreshments 6pm Start

Masterton

20 July

Wednesday

5:30pm Light Refreshments 6pm Start

Foxton

25 July

Monday

5:30pm Light Refreshments 6pm Start

Gisborne

26 July

Tuesday

6:30pm Light Refreshments 7pm Start

Napier

01 August

Monday

6:30pm Light Refreshments 7pm Start

Auckland (Remuera)

02 August

Tuesday

6:30pm Light Refreshments 7pm Start

Auckland (Northcote)

08 August

Monday

5:30pm Light Refreshments 6pm Start

Waiheke Island

09 August

Tuesday

5:30pm Light Refreshments 6pm Start

Whangarei

10 August

Wednesday

5:30pm Light Refreshments 6pm Start

Kerikeri

15 August

Monday

5:30pm Light Refreshments 6pm Start

Palmerston North

16 August

Tuesday

6:30pm Light Refreshments 7pm Start

New Plymouth

JULY 2016

AUGUST 2016

DATE JUNE 2016

DAY

SOUTH ISLAND TIME

CITY

27 June

Monday

5:30pm Light Refreshments 6pm Start

Hokitika

28 June

Tuesday

5:30pm Light Refreshments 6pm Start

West Port

04 July

Monday

5:30pm Light Refreshments 6pm Start

Timaru

05 July

Tuesday

5:30pm Light Refreshments 6pm Start

Twizel

06 July

Wednesday

5:30pm Light Refreshments 6pm Start

Christchurch

12 July

Tuesday

5:30pm Light Refreshments 6pm Start

Cromwell

13 July

Wednesday

5:30pm Light Refreshments 6pm Start

Wanaka

14 July

Thursday

5:30pm Light Refreshments 6pm Start

Dunedin

25 July

Monday

5:30pm Light Refreshments 6pm Start

Queenstown

26 July

Tuesday

6pm Light Refreshments 6:30pm Start

Invercargill

02 August

Tuesday

5:30pm Light Refreshments 6pm Start

Nelson

03 August

Wednesday

5:30pm Light Refreshments 6pm Start

Blenheim

09 August

Tuesday

5:30pm Light Refreshments 6pm Start

Christchurch (Rangiora)

JULY 2016

AUGUST 2016

WWW.NZCB.NZ

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TOOLBOX —

Studies show our industry is still missing the mark when it comes to building it right first time, in our next ToolBox Seminar Series we look at where we are going wrong, what’s this costing the builder and simple steps to ensure a quality product that’s profitable.

THE MORE YOU SPEND, THE BETTER THE REWARDS WITH PLACEMAKERS.

SO WE’RE DELIGHTED TO TELL YOU THAT WE’VE NOW MADE DOING BUSINESS WITH US EVEN MORE REWARDING. PlaceMakers Plus recognises your loyalty with some truly special rewards – including a huge range of leisure products, top deals from our partners and a choice of amazing holidays so you can enjoy some well-deserved time off.

If you’re already a PlaceMakers LIFT Rewards member, your details will have automatically been transferred into PlaceMakers Plus. If you’re not a member talk to your local branch operator today.

TO FIND OUT MORE, HEAD TO PLUS.PLACEMAKERS.CO.NZ AND SEE HOW YOUR HARD WORK CAN TAKE YOU PLACES!

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WATCH OUT FOR THIS LOGO ON SELECTED PRODUCTS IN TRADE ONLY TO EARN BONUS PLUS POINTS AND GET YOUR NEXT REWARD FASTER.

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AT PLACEMAKERS, WE’RE PROUD TO BE A TRUSTED MEMBER OF YOUR TEAM.

FEATURE —

HOW TO MAKE YOUR MIND UP ABOUT XERO (in 5 quick questions)

4. Are you worried about backups, upgrades and security of your information?

Everyone is talking about Xero and you’ve heard a bit about it. The question is, would it help you and your business? Here’s the Beany questionnaire about whether it would be a good idea for you.

Yes - Xero looks after all of that so it’s one less thing to worry about.

As no financial data is stored on your hard drive, if it gets stolen or dropped, it doesn’t matter. You can keep working as all your data is secure.

1. What are you currently using to look after your bookkeeping?

No - stay as you are.

If you’re new into business, or really don’t have an existing system (and the shoebox in the wardrobe is NOT a system), then definitely hop aboard, this will save you time, anxiety and money. There are different types of Xero file and we can sort out the right one for you.

5. Do you want to know more about how your business is doing?

Yes - If you’re interested in understanding how your business is doing, in real time and at your fingertips, then Xero can be amazing. You can control your business better and see every day how you’re doing.

If you’re using another piece of accounting software like a desktop MYOB, Cash Manager, Quickbooks then there probably will be time benefits so check out the next question...

No - don’t get Xero. Some businesses do the same old thing year in and year out and their owners are frankly not that interested in the accounts and their profit.

2. How much time are you spending on your bookkeeping each month?

Now is the time to ask yourself the Xero question as the start of the financial year is the perfect time to switch......And we've got an offer to make it even easier, check our Xero conversion offer.

More than 2 hours a week? - Whether it’s you or someone you’re paying to do this, find out how much this is costing you each month.

Xero has live bank feeds and the ability to invoice straight out of the file as well as great reporting so typically cuts down on the time you need to spend on your bookkeeping. If you can save more than two hours a month then switch to Xero.

And if you’re still not sure, then call us on 0800 755 333 or email support@beany.com and we can help you sort it out.

If you’re only spending an hour a month on your bookkeeping then you may be fine with whatever you’re using so read through the next questions.

3. Where do you do your bookkeeping?

Is your business mobile? Would it be handy to be able to raise invoices at the gate of your customer? Xero is in the cloud which means you can work from anywhere on any device.

If you’re always on the same computer - desktop software will work for you.

Sue de Bièvre is the CEO of beany.biz – Real Accountants Online. Beany.biz works with the construction sector to help streamline accounting and business processes and is an associate member of Certified Builders.

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FEATURE —

HEALTH AND SAFETY REGULATIONS RELEASED: What you need to know about the new control hierarchy

4. Administrative controls – training and procedures: If none of the above controls can be implemented, or can’t be implemented straight away, administrative controls should apply. E.g. retraining, supervision, and rotation of workers performing repetitive tasks, to minimise hazard associated risks.

A raft of new regulations to support the Health and Safety at Work Act 2015 (Act) were released recently, covering general risk and workplace management, worker engagement, participation and representation, major hazards, asbestos, as well as infringement fees and more specific topics like mining and adventure activities.

5. Personal protective equipment (PPE): The last control option is PPE. The rationale for this being a final resort is that PPE’s reliability to prevent harm is dependent entirely on a person doing the right thing every single time, yet mistakes are inevitable. E.g in a job that discharges chemicals to the atmosphere, for example, spray painting or asbestos removal, forgetting to change a respirator (PPE) filter could be fatal. An engineering control such as a filtered extraction system would remove reliance on PPE for safety.

In this article, we will focus on the regulations regarding the hierarchy of controls for hazard risk management, which has broad application to all businesses in New Zealand. The new Act clearly directs that hazards must be eliminated where reasonably practicable, before you can look at the most appropriate and effective lesser control/s to minimise the associated risk.

In order to rely on control measures to meet obligations under the Act, a PCBU implementing any control measure must ensure that it is effective and lowers the risk rating for the hazard identified. The control measure must be fit for purpose, suitable for the nature and duration of the work, and installed, setup and correctly used.

The control hierarchy has shifted significantly from the “eliminate, isolate, minimise” framework which applies under the current law.

From 4 April 2016 when the Act comes into force, controls must be applied, in order of preference dependent on what is reasonably practicable in the circumstances, as defined below:

PCBUs must also review, and if necessary, revise, control measures, to maintain a work environment without risks to health and safety and to achieve the ultimate aim of the Act - continual improvement to health and safety.

1. Substitution: substitute the hazard giving rise to the risk with something that gives rise to a lesser risk. E.g. instead of using an acid based cleaning solution, use an organic product with no harm side effects. Practically, the result of this form of substitution is elimination of risk.

2. Isolation: isolate the hazard, to prevent anyone coming into contact with it. “Isolation” is any form of barrier between a person and a hazard. E.g. Many carparks now have a metal barrier for pedestrian walkways, isolating vehicle hazards and preventing risk of harm by contact between cars and shoppers.

Kate Ashcroft is a Principal with Copeland Ashcroft Law, an independent legal practice providing specialist advice, representation and support across the full ambit of employment and health and safety law, to businesses throughout New Zealand. Why us? Put simply, as specialists in employment and health and safety law, we know our stuff. That means we efficiently assist you with pragmatic and specific advice, to suit your needs. We know what works, and we partner with you to achieve the results you want, so you can get on with business.

See www.copelandashcroft.co.nz for details.

3. Engineering controls: these are mechanic or structural controls such as sound proofing, guards or interlocks. E.g. where working with compressed air with a compressor in the same building as people work, engineering controls like sound proofing could minimise the risks created by the compressor’s noise.

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CERTIFIED PLANS —

WE’RE LOOKING FORWARD TO SEEING YOU AT CONFERENCE! Come and see us at Trade Stand 36 & 37 where our 8 new architecturally designed plans will officially be released!

This new collection of plans meets the requests of our Certified Plans members and includes two storey designs, smaller dwellings for rural and coastal use and smaller one storey designs for cross lease sections.

Stop by and have a chat and we look forward to hearing about your successes with Certified Plans.

N.B. Images shown are drafts only.

Dan Dwyer Dan Dwyer Construction Limited Ashburton Michael Creedy Michael Creedy Building Mosgiel

Sales Education in Christchurch with Bill James A great time was had by all that attended the Christchurch sales seminar with Bill James. Our members came away with knowledge and techniques to assist them in clinching the deal with a home owner and two more seminars with Bill have been arranged for later this year. To register your interest for either of the below seminars please contact julie@nzcb.nz Dunedin 23 June 2016

Diane Foley Point to Point Construction Whangaparoa Simon Curtain Uprite Building Limited Alexandra

Waikato 21 July 2016

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LATEST MEMBERS

SUCCESS THROUGH CHANGE

18th Annual New Zealand Certified Builders Conference & Expo

All the trade expo stands (over 70) have been sold out already, with a healthy waiting list of trade specific suppliers wanting to showcase their products/services to you. There will be such a huge amount of building knowledge under one roof, it seems crazy to miss an event such as this!

EVENTS & TOURS: Free Factory tour – Thursday 25th May: • 9am pick-up from TSB Arena

TSB ARENA & SHED 6, QUEENS WHARF, WELLINGTON 26TH TO 28TH MAY 2016

• 9:30am arrive at BRANZ • 12:15pm arrive at Firth Concrete • 2:35pm arrive at Dulux Paints • 4:00pm arrive at WelTec School of Construction

This year’s huge conference & expo is bulging at the seams, full of motivation, education and tools to make you a more successful builder and business person. Just having a look at everybody who has registered already (thanks for that – you are totally on to it, you know who you are!) it looks like more and more wives/partners are coming along to reap the educational rewards…

You will be dropped back off at TSB Arena around 5:15pm in time for the Expo Open Afternoon and Carters Welcome Function.

Trade Expo Open Afternoon – Thursday 26th May: The expo area with over 70 trade exhibitors will be open on Thursday afternoon from 3:30pm to 5:30pm for any tradespeople, so if you have friends/family in Wellington who are not members or not attending conference, do encourage them to come along and have a nosy through the trade exhibits.

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Carters Welcome Function – Thursday 26th May:

Mitre 10 Happy Hour & Great Apprentice Race – Friday 27th May: Don’t miss this action packed happy hour, which will include the apprentice finalists taking part in their great apprentice race.

Come support your regional (or favourite apprentice) while enjoying nibbles and a few bubbly beverages.

PlaceMakers Museum Mingler – Friday 27th May: The Wellington City & Sea Museum is a stonethrow away from the TSB Arena, enjoy your refreshments and bowl food whilst learning about Wellington’s history which is housed in the Bond Store, an 1892 heritage building designed by leading architect Frederick de Jersey Clere. Set over four floors, the Museum shares some of the fascinating stories of the Wellington region.

Fletcher Window & Door Systems Charity Auction – Saturday 28th May: The ever popular Charity Auction will take place on Saturday afternoon, grab yourself a bargain and help apprentices in their hour of need – it’s a win win! All funds go to the Apprenticeship Scholarship Trust.

CLINTON COWAN Friday 27th May @ 4:30pm: Tradies Embracing Technology.

MIKE COSMAN Friday 27th May @ 11:15am: Heath and Safety Reform Recent health and safety reform stemmed from a chain of failures at the Pike River Coal mining operation. New Zealand Government commissioned an Independent Taskforce team to present to Government what changes to NZ health and safety law needed to bring us in line with international standards. Mike Cosman was on this team. Mike will present on the innate problems of health and safety in New Zealand, from the regulators to the coal face and the pressure points the new Health and Safety at Work Act will apply to what we once considered as normal practice. Governance of a business will come under greater scrutiny, with many of our members involving wives in the directorship of their businesses understanding other directors obligations involving health and safety has become very topical amongst members, Mike will step us through the liabilities held by these positions. Building a project requires many contractors all working in sync, collaboration of their health and safety duties also has to be synchronised, what does this mean and what does this look like for a complex site can be difficult to explain. As a member of the Independent Taskforce Workplace Health and Safety Mike can deliver the message in plain English along with the methodology behind it.

ITM Happy Hour – Saturday 28th May: The ITM Happy Hour will run in conjunction with the charity auction, which will take place in the Upstairs Foyer of TSB Arena, thanks ITM.

Black & Gold Tie Awards Dinner – Saturday 28th May: This year we are celebrating in style with a black and gold tie Awards Dinner, celebrating our members’ success, announcing the Carpentry Apprentice Challenge winner and much more.

The Awards Dinner starts with pre dinner drinks in The Arcade (building adjoining TSB Arena & Shed 6) and will then move into Shed 6 which will have undertaken a breathtaking transformation into a suave Black & Gold setting fit for celebrations. A three course dinner, drinks and a ‘world famous in Wellington’ band The Noodles, will entertain for hours.

Dress Code: Smart, Black and Gold.

DALE WILLIAMS Friday 27th May @ 2:30pm: Success through Change – where young people fit.

Dale is a hands on, practical achiever, with a wealth of knowledge and experience in trades, training and employment. He is an enthusiastic, inspirational and humorous presenter and commentator on the challenges and opportunities of 'Young people, Transitions and Jobs', 'Community Ownership and Leadership' and the ‘Zero Waste of Youth’.

The information and experiences he will share are insightful, provocative and entertaining, and his presentation will challenge the audience that Success through Change is achieved when young people are part of the solution, not just the problem!

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Technology is changing the face of the construction industry and making businesses more efficient, professional and profitable. We are now more connected than ever and the new hardware and software tools are evolving rapidly. Now is the time to learn how these tools work and how you can leverage them to help progress not only your own operations but our industry as a whole. Clinton Cowin will give an overview of where technology sits currently, where we're headed, and why you need to get on board now or get left behind.

Clinton Cowin, TradiePad founder and CEO, is widely acknowledged by industry experts as the pioneer of Mobile and Cloud technology for the Trades and Services industries. He has been a key-note speaker at numerous events, trade shows and industry webinars, where he educates business owners on how this new, simple but highly effective technology is helping tradies.

DR TOM Saturday 28th @ 2pm: Tools for a Healthy Mind and Life.

We are born with a very large brain, but no manual on how to use it. We learn how to read and write, but not how to manage our own emotions. If we want to change how we feel and act, we need to change what we think. To build a healthy mind and life, we need the right materials and TOOLS. Just like any new skill, the more you practice the better you get, its the same with Healthy Thinking. How emotionally and physiological fit are you?? How much time do you waste each week feeling frustrated stressed or anxious?? How do you know if your emotions are healthy or unhealthy??

How long do you want to live for??? Dr Tom will give you some tips on how to stay out of the Emergency Department and live to 100!! using his relaxed style and interesting perspective on the human condition and what makes us tick.

ASSOCIATION NEWS —

Straight after the Expo Open Afternoon is the Welcome Function kindly sponsored by Carters, come and join your fellow Certified Builder members and trade exhibitors for a few drinks and tasty nibbles in the expo area from 5:30pm to 7:30pm.

Keynote Speakers:

ASSOCIATION NEWS —

18th Annual New Zealand Certified Builders Conference & Expo TSB ARENA & SHED 6, QUEENS WHARF, WELLINGTON 26TH TO 28TH MAY 2016

Educational Workshops: 11:00AM TO 11:55AM

Shed 6 is such an amazing venue that this year we are lucky enough to have a whopping 16 educational workshops to choose from:

Empowering Employers – Trudy Marshall, Partner Employment Lawyers, Tauranga:

Certified Stream (Room 1):

This workshop will cover topics that are most frequently raised by NZCB members and will cover:

8:30AM TO 9:25AM An Introduction to the New 10 Year Residential Guarantee Insurance Scheme for New Zealand Certified Builder’s Association Members

•

The difference between independent contractors and employees

•

Employment agreements – timing, type and contents

– Derek Larsen, BrokerWeb Risk Services

•

Trial periods

Derek will be giving and introduction and overview of the new builder requirements under the Building Act amendments 1 January 2015 as well as:

•

Disciplinary process

•

Kiwisaver – obligations new employees

• Background to and NZCB review process of Builder Guarantee scheme.

12:00PM TO 12:55PM

•

New Builder Home Warranty policy coverage: - New protection for home owners.

- New protection for builders.

- TBC

•

Underwriter financial security and premiums.

•

Builder indemnity and sleep easy cover.

8:30AM TO 9:25AM

•

New claims process.

•

New simplified application process.

•

Exciting changes to the scheme that have been developed since its launch.

Business Stream (Room 2):

Discover the secret to maximising profits in your business….

– Greg Hamlyn, Builders Profits

Greg Hamlyn, founder of Builders Profits and Trades Coaching is going to share with you the secret to maximising profits in your business, so you can deliver quality consistently and generate more profits.

9:30AM TO 10:25AM

You’ll discover how systems and understanding what your time is worth help you to maximise profits, along with the importance of eliminating inefficiencies across all areas of your business so you can create quality control.

Lawyers, Guns & Money – Geoff Hardy, Madison Hardy:

Greg has over 12 years experience working as a business development specialist in the construction industry and he will be sharing with you the systems and processes he has created, which you can implement into your business to help you improve their quality of your customers, leverage your time and create a business that provides the profits and lifestyle you desire.

This is a two-part workshop presented by construction lawyer Geoff Hardy. First Geoff will summarise NZCB’s two new contract offerings - the new Subcontract and the spec builder contract –and provide his perspective on the new guarantee. Secondly Geoff will outline for you how the consumer rights & remedies in the Building Act are working in practice, and explain the recent and upcoming changes to the Construction Contracts Act.

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9:30AM TO 10:25AM

how our building and trading laws relate to building products – and why it’s important for you to know about this.

How technology can transform your business, and your life!

Key topics include:

In the Plenary session, Clinton covered (will cover) a high level view of where technology is positioned within our industry and the effect it is having now and into the future. This session will dive into the detail of the specific tools you can use to take your operations to the next level and show you how to build a “Business Operating Platform” that will have major positive impacts on every facet or your business and personal life.

•

• Product technical statements (PTS) – what to look for and how to use them • Product substitution – builder responsibilities to BCAs, designers and owners.

9:30AM TO 10:25AM

11:00AM TO 11:55AM

Great staff = Great firms: future workforce opportunities and challenges

Being Different is the Difference – Bill James, Certified Speaking Professional

– Greg Durkin, Group Manager – Stakeholder Engagement, BCITO

Stop sounding like every other builder and start doing the business •

Construction relies heavily on highly skilled people across all facets of manufacturing, supply and site works. People with the right skills are critical to the success of industry in terms of meeting consumer and industry needs today and in the future.

Increase sales 87% with a 5 step sales process.

• Know how to tell a customer why you are the right choice so they get it and want you.

•

An introduction to building product assurance

Employment growth during 2014 and 2015 is the highest the industry has seen in recent years. Compared with 1.7% growth in employment in 2014 for all of New Zealand and 4.9% for all construction trades, the industry is certainly charging ahead. This presentation discusses the challenges and opportunities that growth heralds, and asks how the industry can effectively respond in terms of the people and skills required. The presentation makes the argument for training across the industry based on the proposition that human capability is both a key asset and a critical risk for firms across the spectrum, and addresses skill development within the context of change including age related risks, salary trends, occupation distribution, business unit growth, GDP and other activity forecasts.

Turn moments of truth into magical moments… …and get more contracts.

12:00PM TO 12:55PM Marketing for Success in a Changing World Secrets to become more profitable through sales & marketing – Ambrose Blowfield & Wendy McPhail, The Marketing Company

• Learn why the battleground in the building industry today is about sales, marketing and word of mouth referrals

11:00AM TO 11:55AM

• Understand what affordable marketing options are available to be used to grow

How to avoid being the next LBP complaint

• Learn how online marketing has changed and how you can use it at a practical level

– Rob Tierney, Founder and Principal Holmes Farsight

Holmes Farsight has been advising MBIE and the LBP Registrar with LBP complaint investigations since 2011 and we continue to supply a team of accredited Advisors contracted to MBIE for the next 3 years.

Based on our complaint experience many builders are not helping themselves with sloppy business and professional practice. In fact many builders are not taking a complaint to the LBP Board as a potential threat to their livelihood. They could not be further wrong.

• See what digital marketing options you should be considering, and what options are a complete waste of time!

• Understand how sales & marketing fit together and why you must focus more on both areas • You will walk away from this interactive session with practical skills and actions to immediately implement into your business

This presentation looks at;

This session will be co-delivered by NZ-based international speakers Ambrose Blowfield and Wendy McPhail from The Marketing Company - Australasia’s leading sales & marketing training company.

• Who typically is making complaints and what can they complain about?

•

What are the most common causes for complaint’s

Site Stream (Room 3):

•

Who assesses/makes Judgement on the complaint’s

8:30AM TO 9:25AM

•

How serious are the possible outcomes.

Building product assurance – Builder responsibilities

Take home tips:

– John Gardiner, Ministry of Business, Innovation & Employment

2. Ways of protecting yourselves if you need to defend a complaint.

This workshop should provide you with a better understanding of

If you value your LBP licence you will want to hear this!

1. Good practice for avoiding complaints;

13

ASSOCIATION NEWS —

• Overview of the building regulatory system; legal requirements for building product suppliers, designers and builders

– Clinton Cowan, TradiePad

12:00PM TO 12:55PM

CONFERENCE EXHIBITORS (IN ALPHABETICAL ORDER):

How to keep the LBP in your business out of trouble ASSOCIATION NEWS —

ACC Allegion (NZ) Ltd

Metro Performance GlassMetrotest

Allied Concrete

MiTek

Anzor

Mitre 10

Architectural Profiles Ltd

MYOB

Simple tips and tricks that you can work with today to keep your LBP out of trouble:

Bartercard

NALCO

BCITO

NASH

• paperwork

BRANZ

Noel Leeming

Broker Web Risk Services

Novus Glass Restoration

Carters

NZ Cupolex

Certified Builders

Paslode

• contracts

Certified Plans

Paul Industries

•

being paid

CHH Woodproducts

PlaceMakers

•

keeping the license up to date

COLORSTEEL®

Pro Clima

CoreLogic

Pryda

CS for Doors

Ramset Reid

Digital Mobile

Red Stag

General Stream (Room 4):

Dulux

Resene Paints

8:30AM TO 9:25AM

Fletcher Window Systems

Rockcote Resene

Gazley

SafetyMate

Genesis Trade

SIKA NZ

- TBC

Hazardco

Simpsons Strong-Tie

9:30AM TO 10:25AM

Hilti

SIMX

Holdfast

Site Safe

Future Design Trends in construction, methodology and sustainability

HomeTech

South Pacific Diamond Tools

– Rosemary Killip, Building Networks NZ Ltd

This session is for the support team or person behind the LBP. The top complaints about LBPs are their lack of communication over the process and the lack of paperwork. As supportive partners or a member of the support team THEY need YOUR help.

•

records of work

•

producer statements

They can ensure they will be entertained, informed and educated.

Colour and Wallpaper Workshop

Independent Buidling Supplies

Sto

- TBC

ITAB

Tasman Insulation

11:00AM TO 11:55AM

ITM

Toyota

Juralco/Homeplus

Tradeworx & Xero

Knauf Insulation

TradiePad

Laminex Group

Viridian Glass

Marley New Zealand

Warmup NZ

- Crowe Horwath Team:

Marshall Innovations

Winstone Wallboards

Did you know there are 4 key skill-sets required to be a successful entrepreneur? Their secret is that it is very hard for one person to have all 4 skillsets, so they have learnt how to mobilise the right people, to help them change and improve the business. This conference is about achieving “Success Through Change” you can’t change what you don’t know is limiting your success. This workshop will help you work out your unique talents, then identify any gaps that your business needs. The Crowe Horwath team will then share practical tips and ideas on how others are resolving those gaps – what works in the building industry, what doesn’t and what learnings we can borrow from other market sectors. There are many success stories out there – make sure you are one of them.

MBIE

WorkSafe NZ

How Cory from Silverline Construction increased profits by 183% and had time to coach his son’s rugby team

Yellow

12:00PM TO 12:55PM From Apprentice to Antarctica - TBC

14

NZCB 2016 CONFERENCE PROGRAMME Activity

Room Thursday - 26th May 2016

9am to 5:15pm Factory Tour

Meet at TSB Arena

1:00pm

Registration desk opens

Registration area TSB Arena

3:30pm

Trade Expo open afternoon

Expo area TSB Arena

5:30pm

Carters Welcome Function

Expo area TSB Arena Friday - 27th May 2016

7:30am

Registration desk opens

Registration area TSB Arena

9:00am

Annual General Meeting (members only)

Plenary area Shed 6

10:30am

Morning tea

Expo area TSB Arena

11:00am

Welcome from the Chairman of the Board - Dave Brown

Plenary area Shed 6

11:15am

Mike Cosman, Health & Safety Reform

Plenary area Shed 6

12:00pm

Health & Safety Forum

Plenary area Shed 6

12:30pm

Lunch

Expo area TSB Arena

1:30pm

Interactive Ice Breaker

Plenary area Shed 6

1:45pm

Plenary area Shed 6

2:30pm

Official Conference Opening by Hon Dr Nick Smith Minister for Building and Construction Keynote Speaker Dale Williams

3:30pm

Winstone Wallboards Afternoon Tea

Expo area TSB Arena

4:00pm

NZCB Brand Launch

Plenary area Shed 6

4:30pm

Keynote Speaker Clinton Cowan

Plenary area Shed 6

5:00pm

Mitre 10 Happy Hour & Great Apprentice Race

Expo area TSB Arena

6:30pm

PlaceMakers Museum Mingler

Wellington Museum

Plenary area Shed 6

Saturday 28th May 2016 7:30am

Registration desk opens

Registration area TSB Arena

8:30am

Educational workshops - round 1

Breakout rooms Shed 6

9:30am

Educational workshops - round 2

Breakout rooms Shed 6

10:30am

Morning tea

Expo area TSB Arena

11:00am

Educational workshops - round 3

Breakout rooms Shed 6

12:00pm

Educational workshops - round 4

Breakout rooms Shed 6

1:00pm

Lunch

Expo area TSB Arena

2:00pm

Keynote Speaker Dr Tom Mulholland

Plenary area Shed 6

3:00pm

Official Conference Closing by Wellington Mayor Celia Wade-Brown

Plenary area Shed 6

3:40pm

Fletcher Window & Door Systems Charity Auction

Upstairs Foyer TSB Arena

3:40pm

ITM Happy Hour

Upstairs Foyer TSB Arena

7:00pm

Black & Gold Tie Awards Dinner - pre dinner drinks

Shed 6 Arcade

7:30pm

Black & Gold Tie Awards Dinner

Shed 6

THANKS TO OUR KIND SPONSORS:

15

ASSOCIATION NEWS —

Timing

16

FEATURE —

BUSINESS FUNDAMENTALS Article No.8 from Accounting to Financial Management This series will help you combine technical construction skills with core business concepts to improve business performance. We have covered the essentials of successful business planning and implementation and we now examine the key functional areas that your business needs to manage successfully.

What are the financial objectives for your business? How is your business being funded and is this the best structure available? How good are your management reporting tools?

Type

Top Level Ratio

Description

Profitability

Gross Profit margin %

Gross Profit is obtained from subtracting cost of sales (for example: labour and materials) from revenue. Helps you determine how well you are managing jobs overall.

Profitability %

Is calculated using net profit (which is after paying all overheads) to track your overall performance from sales and managing all costs.

Current Ratio

Surplus of current assets over current liabilities (should be at greater than 2).

Quick Ratio

Ability to pay short term creditors immediately from liquid assets (should be greater than 1).

Leverage

Debt to Equity

Measures how the business is funded.

Lenders will want to understand this ratio before they consider further lending.

Efficiency

Activity Ratio

This is the amount of revenue earnt from every dollar used in the business.

Return on Capital Employed

This is a measure of the earnings of the business generated by the capital in the business. Enables you to compare returns from your construction business.

Liquidity Ratios

Last month we discussed the importance of robust accounting systems and processes to provide accurate financial data. However real value comes from the decisions made when data is converted into key financial business indicators.

Let’s talk cash…

We all know that maintaining a positive cashflow is a must. A key trap to avoid is using the deposits of new customers to fund earlier shortfalls. How do you achieve this? Treat each job as its own cashflow centre, making sure you diligently manage cost over-runs and late payment of debts as though each job was your only one. As William Buffet famously said “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”

Key Financial Ratios for Construction Business Management You should calculate and track ratios over time, using reliable financial information that is consistent (so comparing like with like).

Management by ratio Meet and Review

If you regularly look at your profit margin, then you are already using a key financial ratio to manage your business. Converting dollar values into ratios enables you to compare your business with others and other investments. Financial ratios fit into 4 categories:

Your management team should meet regularly to review the ratios against standards for comparison (benchmarks) along with nonfinancial indicators (such as staff performance). A traffic light system alerts you to ratios that are “green” (under control), “amber” (“watchme closely”) and “red” (“action now!”). Then use the lower hierarchy ratios to analyse the cause of issues.

1. Profitability ratios – as the name says, ratios that help you understand profit 2. Liquidity ratios – indicators of cashflow and solvency

Good financial management sits at the heart of a successful business. Crowe Horwath has an online dashboard tool helps you do this – go to www.analysis-one.com for more information and sign up for the free 14 day trial.

3. Leverage (gearing) ratios – indicators of borrowing compared to capital investment 4. Efficiency ratios – track how well you are using resources to create value.

Ratios also have a hierarchy. Top level ratios summarise the overall business performance, but you should drill down to ratios at job or function level to assess issues. Some key ratios are listed in the table above.

Peter Van der Heijden is a member of the Crowe Horwath Construction Team, who works with Certified Builders across New Zealand. Today’s builders need more than a good accountant and Crowe Horwath will help you get the right advice and support to succeed. Please go to www.crowehorwath.co.nz/ construction for further information.

Disclaimer: This article provides general information only, current at the time of production. Any advice in it has been prepared without taking into account any specific circumstances. Businesses or individuals should seek professional advice before acting on any material. Crowe Horwath (NZ) Limited is a member of Crowe Horwath international, a Swiss verein. Each member firm of Crowe Horwath is a separate and independent legal entity. Crowe Horwath (NZ) Limited and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath or any other member of Crowe Horwath and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath or any other Crowe Horwath member. ©

17

ASSOCIATION NEWS —

AROUND THE REGIONS

Kane Forte... from Nulook showed the crew how to catch a decent fish.

All had a very successful day on the water out from Te Kouma on the mussel farms.

18

WAIKATO FISHING DAY Shane ‘the morning after’ we all thought the Easter bunny had arrived.

Associates enjoyed themselves and it was a fantastic day weather wise but fish proved difficult to catch.

RECENTLY A $5,000 CHEQUE WAS PRESENTED IN TAUPO TO THE CHILD CANCER FOUNDATION The Taupo region, which hosted a charity golf tournament in November, was able to present the Child Cancer Foundation with a cheque from the tournament proceeds.

Delwynne Hahunga of the Child Cancer Foundation attended the tournament and was impressed by the support the tournament received.

As the Child Cancer Foundation receives no direct Government funding it relies on donations from the community. The Foundation supports families of children with cancer and this donation was much appreciated.

WESTERN BAY OF PLENTY

The Foundation thanked NZ Certified Builders and all of the participants, contributors and sponsors in the tournament who all helped to make a difference in the lives of children with cancer and their families.

Incoming president Paul James congratulates outgoing president Michael Way, presenting him with Services to Western Bay of Plenty trophy. This trophy has been passed on since 2005, to persons who have contributed in a significant way to Western Bay of Plenty Certified Builders, featuring such names as John Jarvis, Colin Meads, John Marsh and Simon Robinson.

19

ASSOCIATION NEWS —

Once again the Waikato region held their fishing at the mussel barge in Coromandel. The attendance was down on previous years; this was probably due to the heavy workloads of our members.

WAIKATO GOLF TOURNAMENT ASSOCIATION NEWS —

On a cloudy day in Cambridge the Waikato region held it annual Ambrose golf tournament,numbers were down from recent years but that didn't stop everyone from having a great day.

Once again we were well supported by our Associates.Out of the funds raised the committee have decided to donate $1,000.00 to St Johns Midlands region. We would like thank the following associates for their continued support.

Thank you to Colin and Michelle Johnston who organised the day.

Colin Johnstone presented Mel from Mike Hayward Builders an appreciation gift for coordinating the golf day entries and behind the scenes work - well done Mel.

Left to right Josh Jamie Tom & Josh dressed up as old golf pros.

SPONSORS

Photo to right Colin Johnstone presented the lads with the best dressed award.

ITM Group - BBQ Metalcraft Roofing PlaceMakers Clarence/Te Rapa - BBQ Tasman Aluminium Rylock Waikato BCITO Mega Mitre 10 Cambridge - BBQ PlaceMakers Huntly Holdfast Noel Leemings Winstone Wallboards Allied Concrete Metro Glass Paslode Firth Franklin Plumbing ITM Group Monier Plus Taurus – sponsored a tool belt for a raffle.

PlaceMakers and ITM exchanging trade secrets.

20

AROUND THE REGIONS WAIKATO AGM “At our recent Waikato AGM I had the pleasure of presenting a certificate of appreciation to Mike Fogarty. Mike has hammered his last nail home, calling it a day and retiring on the sunny Okati coast.

Mike has been a long time supporter of the Association gaining membership in 2002, since then he has remained active sitting on the Board of Directors and an avid ITAB supporter through his time tutoring at Waiariki Institute of Technology.

Recently Mike and I work together to facilitate ITAB training in Hamilton, his dedication towards his students is admirable. On behalf of the Waikato committee and members we wish you well Michael Fogarty.� - Signed, Warwick Leigh-James [Immediate past president Waikato].

21

FEATURE —

HOW TO IMPROVE YOUR CHANCES OF RECOVERING YOUR DEBT

By Geoff Hardy of specialist construction law firm Madison Hardy

the Disputes Tribunal if there’s a genuine dispute involving $15,000 or less. Suing in the courts is hopelessly complex, time-consuming and expensive, and arbitration (unless it’s a special short-form arbitration) is not much better. Where your client is too stubborn or emotionally charged, mediation is usually just an expensive talkfest that gets you nowhere, and the Disputes Tribunals are dangerous because they typically favour the homeowner, they don’t have to follow the law, and the Referees don’t have experience in construction projects.

As a builder, if you don’t get paid by your client you have a number of options to recover your money.

If you have used a standard Certified Builders contract without any modifications, then you should have the deposit to fall back on, together with a right to suspend work, charge interest, recover your legal fees, refuse to hand over any documentation (other than your record of work), cancel the contract in certain circumstances, and register a caveat against the owner’s title. If the client disputes your entitlement to the money, then you have a number of ways you can resolve the dispute, including negotiation, mediation, the Disputes Tribunals (our small claims courts), arbitration, adjudication under the Construction Contracts Act (“CCA”), or the regular courts.

CCA adjudication, on the other hand, is reasonably quick (if you make the effort you can get it done in two months), much less expensive than the courts, and the decision is made by a construction expert so there is much less chance of a rogue decision. If the adjudicator decides that some or all of your claim is payable, that sum has to be paid within two working days after the decision.

But what if it’s not? What if the client simply refuses to pay? You will then be in the position of being an “unsecured creditor”. That means you are owed a debt, but you don’t have much leverage to force your client to pay, at least in the short term. If you are extremely patient you can register the debt with one of the credit agencies, and wait for your client to one day apply for finance (and get refused). Or you can appoint debt collectors. However a stubborn or emotionally charged client is just going to ignore them, and once you have appointed debt collectors they can claim a large percentage of your recovered money even if they weren’t involved in recovering it.

Personally I don’t place a lot of store in any of those disputeresolution methods, other than adjudication under the CCA. That is why the Certified Builders contracts say that CCA adjudication is the only way you are allowed to resolve disputes, although you can use mediation if both parties agree, and you can’t stop your client going to

22

However what I encourage you to do is transform yourself from an “unsecured creditor” to a “secured creditor”. Secured creditors (like the Banks who hold a mortgage) have all the power because they can either take possession of a tenanted property and intercept the rental, or they can simply sell the property and recover the debt out of the sale proceeds. If your client goes bust before paying up, the secured creditors in most cases get to pick over the carcass ahead of everyone else. So how do you, as a humble builder, get to become a secured creditor? There are two main ways.

A charging order isn’t quite as good as an agreement to mortgage, because it doesn’t allow you to appoint a receiver to intercept the income from the property. All it does is stop the owner selling or mortgaging the land while you apply to the Court for permission to sell the land yourself, within the next two years. And you need to move quickly if you want a charging order, otherwise the client can take steps to defeat you. For example they can sell the property before the adjudication decision comes out or before you get the charging order registered (although a bogus sale to an “associate” won’t work). Nevertheless, when they don’t want to sell the property, a charging order can be a very powerful weapon in your armoury.

The first is to rely on the “agreement to mortgage” under the Certified Builders building contracts. This provides you with such powerful leverage, that it is usually the first provision the owner’s lawyer asks you to cross out, if they are asked to review the contract.

In situations where the agreement to mortgage is not crossed out, then it is almost as good as a bank mortgage (although you will be the second mortgagee, not the first). Rather than registering your mortgage on the owner’s title, what you typically do is register a caveat against the title instead. This stops the owner from selling the property, and will cause their bank some consternation, so sooner or later it results in payment. This is equally effective against residential clients, or commercial clients, as long as they own the property you are working on.

The second method is to apply to the CCA adjudicator for what is known as a “charging order”. This can only be done if it was a commercial rather than a residential project. If your commercial client owns the building site, and the adjudicator decides that you are indeed owed part or all of your claim, then they have to grant you your charging order. Then you get that sealed by the District Court,

Geoff Hardy provides legal advice to CBANZ and all of its member builders. Contact Geoff on (09) 379 0700 or geoff@madisonhardy.com. This article is not intended to be relied upon as legal advice.

Good Practice Guide:

Masonry Veneer 2nd edition Around 35% of homes in New Zealand have masonry veneer cladding. It has proven weathertightness, is solid, hardwearing and low maintenance.

This fully updated edition describes the installation of masonry veneer cladding using clay brick and concrete brick and block products. It also covers: ◊ Codes and Standards ◊ Design requirements ◊ Detailing ◊ Material ◊ Construction management and workmanship ◊ Applied finishes ◊ Cleaning and maintenance Packed with numerous photos and figures, this guide provides good-practice solutions for masonry veneer design and construction along with wall ties, structural frame, foundations and cavity requirements.

related trade, building consent authority, tertiary tutor, student and apprentice.

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23

FEATURE —

before registering it against the title. It then has much the same effect as a caveat. You can even get a charging order where the building site is owned by an “associate” of your client. Typical situations where you would qualify for a charging order are where the land is owned by a company (as long as it isn’t a trustee for the occupants), or a developer, or the property is tenanted, or it’s a commercial property.

You may as well cut out the middle man (the debt collector) and lawyer-up, straight away.

ITAB —

2016 REGIONAL EVENTS A RESOUNDING SUCCESS

24

ITAB —

CARPENTRY APPRENTICE CHALLENGE

The 2016 New Zealand Carpentry Apprentice Challenge has seen 62 apprentices compete at a regional level against each other for the right to travel to and contest at the National final in Wellington at the 18th Annual NZCB National Conference. Apprentices from Whangarei through to Invercargill and everywhere in between have come together for this year’s event, with the assistance of regional NZCB committees and Industry Training Providers (Polytechnic’s) that hosted the regional Challenges making them a resounding success.

The regional challenges would not have been so successful without the partnership NZCB has with local ITP’s via the ITAB Apprenticeship Programme. The commitment made by each ITP to deliver & coordinate such professional regional events shows the dedication of those ITAB Carpentry Tutors involved and highlights the working relationship that each ITP has with its NZCB members who are the Stakeholders of our Industry.

This year’s challenge saw competitors building Playhouses designed for preschool children which when finished will be donated to Early Child Care centres in regional communities. Local child care centres were invited to apply for completed playhouses by contacting Nick Matthews (ITAB Development Manager) whose contact details were supplied as part of a regional media campaign. Nick said the responses from centres around the country was overwhelming, with enquiry letters varying from 1-2 sentences however most were very detailed, some had artwork and explained just why their Centre’s children were worthy of a new playhouse.

Regionally twelve challenge events where held consisting of seven in the North Island and five in South Island. Many thanks to all the regional NZCB committee members and Trade Merchants who gave their time freely, sponsored prizes, provided refreshments and got in behind to help out their local ITP to make this year’s competition a worthy and successful Challenge.

For more images and video of the regional events go to: www.facebook.com/itabnz

Sponsors:

25

ITAB —

CARPENTRY APPRENTICE CHALLENGE

Adam Johnson

2016 REGIONAL FINALISTS Clement Richer

Keepa Hodge

The South Auckland Regional Challenge was held on Thursday 7 April at Unitec’s Mount Albert Campus. Adam works for Tiger Building Ltd and believes an apprentice should be “hard working and determined”. Adam was the top of eight local apprentices and advances though to the National Final.

The North Auckland Regional Challenge was held on Saturday 9 April at Unitec’s Albany Campus. Clement works for Smith & Sons Epsom Ltd and says an apprentice should be “interested in learning every day”.

Clement was the top of eight apprentices and advances though to the National Final.

The Taupo Regional Challenge was held on Saturday 12 March at Roberts St Reserve in Taupo. Keepa works for Kelven Hemipo Home Renovations Taupo Ltd and believes apprentices should be “keen as’ and have a “willingness to learn”. Keepa was the top apprentice for the second year running and advances though to the National Final.

South Auckland

North Auckland

Central North

Mark Templeton

Max Southworth

Sam Reeves

The Southland Regional Challenge was held on Saturday 9 April at the Southern Institute of Technology in Invercargill. Mark works in Queenstown for The Builders Ltd and says an apprentice should be “passionate about their job”. Mark was the top of five local apprentices and advances though to the National Final.

The Bay of Plenty Regional Challenge was held on Saturday 19 March at Bay of Plenty Polytechnic in Tauranga. Max works for local builder Paul Riordan and says an apprentice should “be able to communicate well” and “work with others”.

Max was the top of four local apprentices and advances though to the National Final.

The West Coast Regional Challenge was held on Saturday 2 April in Greymouth at the local ITM branch. Sam works for Hokitika Building Service Ltd and believes an apprentice must have “Accuracy” and “understanding”. Sam was the top apprentice and advances though to the National Final.

Southland

Bay of Plenty

West Coast

26

ITAB —

Kerry Manson

The Canterbury Regional Challenge was held on Saturday 9 April at the ARA Institute of Canterbury, Trades Campus in Christchurch. Kerry works for Reynolds Construction Ltd and says an apprentice must “want to be there” and “strive for excellence”. Kerry was the top of five local apprentices and advances though to the National Final.

Canterbury

Tom Ferguson

The Manawatu Regional Challenge was held on Saturday 9 April at the Universal College of Learning Campus in Palmerston North. Tom works for Adan Larsen Building Ltd and says an apprentice should be “happy to work with others” as well as “hardworking”. Tom was the top of five local apprentices who advances though to the National Final.

Manawatu

Lachlan McLeod

The Northland Regional Challenge was held on Saturday 2 April in Whangarei at North Tec Polytechnic. Lachlan works for MD Construction and thinks an apprentice should be “honest and Safety Conscious”. Lachlan was the top of four local apprentices and advances though to the National Final.

Marco Vasquez

The Wellington Regional Challenge was held on Saturday 9 April at the Wellington Institute of Technology School of Construction Campus in Petone. Marco works for Sequoia Construction Ltd and says an apprentices should be “humble to recognise mistakes and learn from them”.

Marco was the top of five local apprentices and advances though to the National Final.

Northland

Wellington

Wade Puklowski

Chris Campbell

The Nelson Regional Challenge was held on Friday 8 April at the Nelson Marlborough Institute of Technology in Nelson. Wade works for Coman Construction Ltd and thinks an apprentice should “be able to do a set task” and “look forward to every challenge”. Wade was the top of six local apprentices and advances though to the National Final.

Nelson

27

The Otago Regional Challenge was held on Saturday 9 April at the Otago Polytechnic Campus in Dunedin. Chris works for Dunedin based B A Builders Ltd and believes an apprentice must be “hard working” and have a “passion for the industry”. Chris was the top of five local apprentices and advances though to the National Final.

Otago

ITAB —

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28

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attention with bystanders and restaurant and café patrons showing their interest and asking the question. It even attracted the Mayor of Taupo who had some good publicity time at the challenge. Maybe this is an option to consider for the future Regional Apprentice Challenges to gain more media coverage and publicity?

As we come to the end of the first round of Tool Box Seminars, I deliberate my conclusion though as we had a mixed response from Worksafe on the new Health & Safety Legislation (which kicked in 4th April) on a whole the Series was a success. In some regions the delivery of the “Reform” by Worksafe was limited, in others it was well delivered and received. Also attendance numbers were through the roof and there was good interaction between the audience and Inspectors for each region… So, Yes I do believe as a whole the Tool Box Seminar Series was a success.

Just around the corner in May is the National Conference & Expo held in Wellington this year. If I haven’t been fortunate enough to cross paths with you, I hope to see you all down there.

Moving forward we have the Regional Carpentry Apprentice Challenges going on as we speak. I have been very fortunate to attend a couple already, in Taupo and Tauranga. The Taupo Regional Carpentry Apprentice Challenge was the first to kick start the challenge and what an event it was. The region’s committee were very active and supportive of the challenge in that they came up with the idea to hold it on the grass front between the Lake and the Restaurants. That choice of venue set up what was an almost perfect day to say the least. The challenge gained a lot of public

Shane Ririnui Business Development Manager - North Island

GOOD JOB GUYS!

ARA INSTITUTE OF CANTERBURY Cameron Bell - Coughlan Construction Limited Hayden Feldwick - Coughlan Construction Limited John Pachnatz - Richie O’Malley Building Constructors Ltd Bryan Pearson - Pattinson Construction Limited Benjamin Moore - Nathan Cook Builders

Completed Apprentices

EASTERN INSTITUTE OF TECHNOLOGY (EIT) Ross Hedges - Atkin Construction Limited

NORTHTEC - FUTURE TRADE Eden Gilmour - Betterbuild Limited Carlos Phillips - RHJ Builders Ltd

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ITAB —

HELLO TO ALL!

ITAB —

ANOTHER GREAT SUCCESS

Later towards the end of the ToolBox Seminar round I had Jim Huntington join me at venues in Central Otago and Southland to promote ITAB on behalf of Southern Institute of Technology and Otago Polytechnic’s to seminar attendees. Talking to employers of ITAB apprentices around the regions has highlighted to me how well our ITAB apprentices are looked after and managed. Thanks to both Roger and Jim for being so passionate about ITAB and getting the word out there to builders that there is a choice about who provides apprenticeship training to our industry.

As the first round of ToolBox Seminars draw to a close I find myself thinking where did the start of the year go? The “Connecting the Dots” Tool Box Seminar was a great success with larger than normal attendance from our own members and non members that highlights to me our industry is taking the changes which are part of the Health and Safety at Work Act 2015 seriously. It was great to have WorkSafe onboard with us for the Tool Box Seminars who delivered their own content and informed attendees of the rational behind the changes that affect not only us as builders but all bussinesses and New Zealand industries.

In my old life as a Carpentry Tutor I used to see a lot of projects and practical exercises end up in the skip at the end of the day… it could be a little dis-hearting over time. However seeing the Play Houses come to life as part of the New Zealand Carpentry Apprentice Challenge around the regions is great! Not just because I have been so involved with this year’s challenge but knowing they are going to Early Childcare Centres who are such worthly recipients makes me think we have done a good thing as an Association.

Regional Annual General Meetings have been happening nationwide with some existing Regional Presidents staying on in office and some new Presidents and committee members being elected, thanks to all our members who took the time to attend their local AGM. We were able to combine AGM’s for South Canterbury and Central Otago with our Chief Executive Grant Florence’s presentation on the re-brand and new Guarantee. Sadly those two regions haven’t had local representation for some time and I am stoked we were able to elect into President roles, Allan Gale of Gale Buuilders Limited (South Canterbury) and Andrew McRae of The Builders.co.nz Limited (Central Otago) - My congratulations and thanks to you both.

I would like to end by saying a massive thank you to all the NZCB regional committees, Polytech and ITAB staff who have given up their time and been involved in this year’s regional challenges. I am looking forward to meeting the finalists in Wellington for the conclusion of this year’s competition.

While recently on the West Coast of the South Island I teamed up with Roger Bleyendaal from CPIT’s ITAB programme to promote and grow ITAB the Coast. Roger attended the ToolBox Seminar and spoke to attendees at the end of the evening about the advantages and benefits that a traditional apprenticeship can provide and how ITAB is the only programme in New Zealand that currently offers the best of both old and new carpentry training. The following morning Roger and I “worked” the trade drive though between 7am – 9am at the local Greymouth ITM and Westport Mitre 10 branch, Roger talked to builders about ITAB apprenticeship while I promoted the many bennefits of membership with NZ Certified Builders (NZCB).

See you in May at National Conference.

Nick Matthews Business Development Manager - South Island

Nick Matthews presenting in Wanaka at the Lonestar Restaurant and Bar.

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One of the most satisfying aspects of working in the vocational training (Polytechnic) sector is seeing the growth of students and apprentices across a period of time. Through their formal training they develop skills and knowledge, and perhaps more importantly for the longer term they develop as people, both personally and professionally, and much of this stems from a real passion for the trade they undertake.

This development has been clearly evident in our carpentry apprentices over the last few weeks as the regional rounds of the New Zealand Carpentry Apprentice Challenge have been run. I spent time at the Bay of Plenty event recently, and the way the apprentices approached their work was a good example of this development. The guys were committed and organised, and carried themselves in way that did them, their employers, and the industry proud.

Each year there is increased interest and support for the event from a range of areas including apprentices, employers, family/friends and merchants. This is raising the profile of the event, and significantly, more apprentices are asking about it and wanting to participate. The AST is a key sponsor of this event, and we are looking forward to the national finals at the CBANZ conference, where the apprentices will be tested again, albeit in a slightly different context. For some this will be demanding, but that why it’s called an Apprentice Challenge, and the guys who vie for the national title will quite likely be the leaders of our industry in the future.

Brian Dillon Chairman AST Trust

We wish all contestant the very best, and look forward to crowning the 2016 winner very soon.

NORTHTEC AST EXCELLENCE AWARDS It takes more than just a few tools and a Ute to make a good apprentice. Attitude, effort and a good sense of humour are all essential ingredients and the Northland winners of the AST excellence awards have all these in spades.

Mark Andrews works for Guyco Construction and is involved in a mixture of commercial and residential projects around Whangarei.

Having just had a new (and first) addition to his family, in the form of a bouncing baby boy, Marks’ hands are full both at home and at work yet he continues to produce solid results at block courses and maintains a cheery attitude at work. A second year ITAB apprentice, Mark was awarded $500.00 to be spent on tools and chose a Makita planer and a Stabila level. (We won’t ask how he got on without a level previously).

Mark Pearson, Mark Andrews

Lachlan McLeod also has his hands full as an apprentice with md construction, working primarily on new builds, looking after his vineyard near Dargaville and restoring a classic car with his brother.

Even though he has only been building for 14 months, Lachie displays exceptional skills and attitude both at block courses and at work with great results. With his $500.00 AST award Lachie bought a Milwaukee cordless jig saw to match his other power tools. He is pictured with his employer, Mark Dobbs, and Northtec/ ITAB tutor Mark Pearson in front of a recently completed ‘Certified Plans’ home.

Both apprentices wish to thank the AST for their support.

Mark Dobbs (md Construction), Lachlan McLeod, Mark Pearson (ITAB)

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AST TRUST —

MAKING THE INDUSTRY PROUD

ASSOCIATION NEWS — Xcel

If your clients are expecting quality results with their interior fit-out, then choose a Certified Business member of AWCI. WE are the professionals when it comes to interior fit-out installation.

Supported by

A full list of Business members can be found on www.awcinz.org.nz or phone 0800 292 469

www.awcinz.org.nz

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The NZCB suite of Online Employment Agreements are now fully up to date with the 1 April 2016 employment law changes.

Don’t forget you’ll need to update all existing employment agreements you have in place before 1 April 2017.

Changes - in a nutshell

Parliament has made a number of important changes to address issues of unfairness and lack of compliance with employment law by employers.

The changes include enhanced recordkeeping responsibilities on employers and greater enforcement powers by Labour Inspectors, including the issuing of infringement notices.

• Cancellation of Shifts

The key changes are to be complied with by 1 April 2016 for new collective and individual employment agreements. There is a 1 year grace period to comply with a number of provisions affecting existing employment agreements.

Controls over an employee working for another employer are not able to be included in an employment agreement unless the employer has genuine reasons based on reasonable grounds for the control, and the reasons are included in the agreement. Genuine reasons include protecting an employer’s commercially sensitive information, intellectual property rights, commercial reputation, and preventing a real conflict of interest. These provisions do not affect the law relating to restraint of trade provisions.

If shifts are worked then the agreement must contain a “reasonable” period of notice to be given if a shift is to be cancelled, and the amount of “reasonable” compensation to be paid if a shift is cancelled without the required notice. The Act defines how “reasonable” is to be determined. “Shift” is also defined.

• Control of Secondary Employment

Zero Hour Contracts Changes address the unfairness of employers requiring employees to be available to work without any obligation on the employer to offer work. Such arrangements will now be unlawful unless the employer has genuine reasons based on reasonable grounds for requiring employees to be available, and the employees are reasonably compensated for their availability.

Wages Protection Act This Act has been amended to prohibit “unreasonable” deductions being made from an employee’s wages. What is unreasonable is not defined. However, the Act now confirms that a provision in an employment agreement generally permitting deductions from wages is sufficient written agreement by an employee. If an employer intends to make deductions based on a general deductions clause then the employee must first be consulted.

In the absence of genuine reasons employees can refuse to carry out work made available without any consequences.

Salaried employees can agree (in their employment agreement) that the salary payable includes compensation for their availability to work.

Parental Leave and Employment Protection Act 1987

Record Keeping

This Act has been amended to extend duration and eligibility.

Employers must keep sufficient records to show that they have complied with the minimum entitlement provisions of the law. The new provisions are on top of existing record keeping obligations.

This will include the recording of additional hours worked by salaried workers so as to ensure Minimum Wage Act entitlements are observed.

Duration will be increased by 2 weeks to 18 weeks. Eligibility is widened by amending the definitions of “primary carer” and “eligible employee”.

New “keeping in touch days” will permit an employee to work up to 40 hours during paid parental leave without losing entitlements under the Act.

As a matter of practice, it would be prudent for employers to introduce daily time and attendance records for all employees. This need not be as onerous as it first sounds and will address many common issues faced by employers, especially smaller businesses.

Agreement can be reached between employer and employee to take unpaid extended parental leave in more than one block.

To Do – Help

Employment Agreements

Any new individual employment agreement or collective agreement after 1 April 2016 will need to comply with the new provisions.

Employment agreements are the primary record of the terms and conditions of work agreed between employers and their employees.

As such they will now be required to contain more detailed and specific information. This will include provisions addressing:

Before 1 April 2017, you will need to consider what amendments are required to existing agreements in order to meet the new legal requirements by that date.

• Agreed Hours of Work The hours of work must be specified. The term “hours of work” includes any guaranteed hours, the days to be worked, start and finish times, and any flexibility regarding the days and work times.

This is likely to affect current ‘no work, no pay’ clauses which are commonly used in some industries such as the construction industry.

Danny Jacobson and Trudy Marshall are Partners at Employment Lawyers Tauranga and they specialise exclusively in employment law. They operate our Employment Helpline for NZCB members: Phone 07 928 0529. They have also previously produced a Guide for Employers in the Construction Industry which NZCB can send out to any members on request.

(The above is by its nature general, and is not intended to be a substitute for legal advice).

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FEATURE —

EMPLOYMENT LAW

FEATURE —

FREE TRADIE EXPO 

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26 May @ TSB Arena, Wellington 3:30pm to 5:30pm 70+ Building Industry Specific Exhibition Stands

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34

By Nick Collins, Beacon Pathway

The lowest quartile of house construction costs (an average $184,644) were $193,000 less than the top quarter of houses (an average $378,418). Even given the potential differences in number of bedrooms, the cheaper houses were built for a surprising 51% less.

Can you build an affordable house in Auckland?

While rising construction, consenting and land costs are often blamed, the debate largely rests on either anecdotal evidence or modelled data. No-one has taken a good look at the actual costs of constructing affordable housing.

Development costs also showed a wide variance – the lowest quartile paying only $8,111 compared to $24,503 in the top quartile.

This suggests that there is potential to identify savings in both these areas, and given how much construction contributes to costs, even a 10% saving could net the top quartile of houses over $30,000 in cost reduction.

Funded by MBIE, Beacon and NZIER have set out to change this.

We gathered cost data from five builders / developers, covering 69 affordable and social homes built in Auckland in 2015. Data was collected on the seven key components of a housing cost tower:

So why is this relevant?

1. Land cost 2. Land development & infrastructure costs 3. Professional fees 4. Construction costs 5. Council and consenting costs 6. Finance, valuation and real estate costs 7. GST

Our participating developers and builders found this a useful process. Sharing data in a common format helped them to compare and benchmark how much they are able to contain costs against others producing similar houses. Benchmarking enabled them to target areas where their performance is at variance with the rest of the sample. This comparative data is being used by some participants to start conversations about reductions of time and costs moving forward.

Need to measure in order to manage The first thing we found is that builders and developers are not good at collecting actual costs and comparing them to estimates. Often tax paid is the only indication of how well a project has met estimated costs. As one builder said to us, at the bottom of the housing cycle, it doesn’t matter so much if you have cost over-runs, but at the top of cycle, you need to get it right to make money.

It also helps identify the relative value of reducing different cost components. It’s easy to see where the biggest costs fall – reducing these by 10% would harvest much bigger savings than reducing the smaller cost components.

Fundamentally, to improve cost management performance, builders need to measure how well they are doing. Knowing where costs fall, and being able to compare your costs to what others are doing, brings the opportunity to explore where and how to reduce costs.

The striking thing about the results was that land costs amounted to only 25% of total costs and the Council consenting costs were only 4% of total costs. Unsurprisingly, construction costs dominate the Cost Tower at 51% of total costs.

This preliminary study has developed a useful standard format for comparing costs, so that apples are being compared to apples and not oranges. It also gives builders a structure in which to identify, categorise and analyse their own costs e.g. separating design costs for development of land from engineering and planning of house.

Understanding more about where your costs are falling can only help in identifying where there are opportunities to reduce costs and improve efficiency and margins while delivering more affordable housing.

This indicates that the best place to save costs is within construction and land rather than in other areas.

Read more about the Cost Tower work http://www.beaconpathway.co.nz/new-homes/article/cost_tower

What does the cost tower show?

When we look at the differences between the lowest quartile and the top quartile, we see huge variances in construction and development costs but less variance for land cost.

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FEATURE —

BUILDING SOCIAL AND AFFORDABLE HOMES IN AUCKLAND

FEATURE —

NZCB PARTNERS WITH HOUZZ Wellington Open Houzz

NZCB is proud to announce that we have partnered with Houzz, the world’s largest community of home design, to deliver a number of benefits to you.

Discover the latest design trends, straight from the mouths of thousands of local homeowners: what projects they are planning this year, how much they plan to spend and much more.

Houzz is the world's largest online community for home design and renovation, with over 40 million users globally, including over 200,000 in New Zealand.

Event Details: Thursday May 5, 6-8pm BoConcept, The Woolstore Design Centre, 258 Thorndon Quay Wellington 6011 RSVP Wellington http://info.houzz.com/OpenHouzzWellington5.5.16_Partner.html

It is a free tool, where professionals can showcase their portfolio of work to large, targeted audience, looking for providers who can help them with their home projects.

Houzz are launching a local Houzz NZ site and to celebrate, will be holding a series of launch events open to NZCB members.

Tauranga Houzz Workshop A hands on workshop to learn about the benefits of the Houzz NZ platform and get pro tips on how to make sure your profile is driving you more clients and exposure.

Follow the NZCB Houzz, http://www.houzz.com/pro/cbanz/newzealand-certified-builders-association profile and add a badge to identify you as a member.

Event Details: Tuesday May 3, 6pm - 7.30pm Tauranga Yacht & Power Boat Club: 90 Keith Allen Drive, Tauranga, 3110 RSVP Tauranga http://info.houzz.com/TaurangaCBANZWorkshop_1RSVP.html

If you would like any help setting up a profile, or you have a profile and would like some extra tips, as a NZCB member, you get priority access to schedule in a time for a phone consultation with the Houzz NZ team http://www.booknow.so/houzzNZ

Houzz Launch Events Christchurch Open Houzz Discover the latest design trends, straight from the mouths of thousands of local homeowners: what projects they are planning this year, how much they plan to spend and much more.

TECH TIPS

Event Details: Monday May 2, 6 - 8pm BoConcept: 12 Papanui Road, Merivale, Christchurch 8014 RSVP Christchurch http://info.houzz.com/OpenHouzzChristchurch2.5.16_Partner.html

To RSVP please view this event in your event calendar online

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FEATURE —

37

TRENDING ARTICLES IN NZCB NEWS

ASSOCIATION NEWS —

Early childcare providers to benefit from carpentry challenge

West Coast apprentices competing in this year’s Certified Builders Carpentry Apprentice Challenge on April 2, at Greymouth ITM, will be building children’s playhouses to be donated to local early childcare providers.

Certified Builders West Coast has invited all local playcentres, kindergartens, creches and other early childcare providers to get in touch by contacting Nick Matthews (nick@certified.co.nz) if they are interested in a playhouse. The playhouses are designed specifically for children of preschool age, built low to the ground, wide and stable, and measuring approximately 1.8m in height. The set-up includes a small climbing wall, stepladder and low swing, with no sharp edges. The playhouses will be donated in their natural timber state so that early childcare providers can use them as is or paint them

In the news

FROM THE MEDIA

The Certified Builders Association of New Zealand is launching a mandatory insurance for homeowners against poor quality building work ahead of the government deciding whether to introduce mandatory guarantees.

ID 530170490 Dominion Post Weekend, Wellington 23 Jan 2016

Stronger protection

The Building Act reforms that came into effect in January 2015 included a requirement for there to be a written contract for residential building work over $30,000, as well as requirements around disclosure of guarantee products and warranties for defective work, but stopped short of introducing mandatory building guarantees. “Given New Zealanders’ homes are often our single biggest investment, it is important that we provide security for homeowners so that if work is not completed to the highest standard, they can be confident that it will be remedied,” said Florence. The association is offering a 10 year residential guarantee insurance policy with an A+ rating from Standard & Poors. The scheme will apply to every new home build or home building alteration over $30,000 that is undertaken by a Certified Builder.

The insurance extends not only to fixing any defects but also the damage caused by the defect.

Certified Builders Association of New Zealand has gone one step further than recent law changes that improve consumer protections for building work.

The association’s CEO Grant Florence says he isn’t waiting for the outcome of the Government’s review of this issue because he believes mandatory building guarantees are in consumers’ best interests. “The expectations of homeowners have changed significantly over the past few years and there is a need to drive greater accountability within the building industry,” he says.

Speaking before Christchurch-based Stonewood Homes New Zealand went into receivership, he said the organisation has moved to introduce mandatory guarantees because “it’s the right thing to do”, and will provide “maximum peace of mind for homeowners and our member builders”.

ID 555508395 New Zealand Herald, Auckland 07 Mar 2016

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APRIL/MAY 2016

ASSOCIATION NEWS —

as they choose to add their own personal touch. The apprentice challenge is run by Certified Builders and its Industry Training Association Building, in conjunction with Tai Poutini Polytechnic and Greymouth ITM. Apprentices from across the West Coast will be showcasing their skills and competing to build the playhouses to set specifications and safety standards, within a set timeframe. The Greymouth event will be open to the public. The best time for people to attend is after 1pm, with the playhouses expected to be completed from about 4pm. It is one of 12 events being held across New Zealand over the next month. The winners of each region going through to the Certified Builders Carpentry Apprentice Challenge final to be held at the Certified Builders annual conference in Wellington on May 26-28.

ID 567946057 Greymouth Star, Greymouth West Coast 30 Mar 2016

“Interesting number plates of our members....this one from the Central North Island”

The growing home renovation industry

said. “People like the location they are in but need more space so investing in their existing property stacks up.”

Mr Florence said homeowners weighed up the costs of renovation with taking the next step on the property ladder and the cost of renovation often won.

Mortgage brokers were also rubbing their hands over the rapid rise in home makeovers. Property advisor John Bolton from mortgage service Squirrel said he was busy processing renovation loans ranging from $60,000 to $1.1m.

“For some people, there is nothing on the market in the suburb they are in,” Mr Bolton said.

Home renovating has become a $1.5 billion boom industry as a growing number of house owners turn their backs on trading up in a rampant property market.

“We are seeing a lot more renovations because people are afraid if they sell they won’t be able to get back in. They renovate rather than move.”

Some first-home buyers were spending up to $70,000 on a new kitchen, insulation and painting and decorating with no structural work. Others added French doors to create flow, and refurbished flooring.

Statistics New Zealand figures reveal we spent $1.5b on renovating houses last year, up from $940 million in 2012.

And the number of homes being renovated jumped nearly 30% in the past three years. It is proving to be big business. The Certified Builders Association has reported a leap in renovation work.

ID 528760825 West Coast Messenger, Greymouth West Coast 20 Jan 2016

“It has been a mix of expanding the floor area and complete upgrading of a house,” association chief executive Grant Florence

Mandatory guarantees

Building Act reforms that came into effect in January 2015 included a requirement for a written contract for residential building work over $30,000. Requirements around disclosure of guarantee products and warranties for defective work were also added. It stopped short of introducing mandatory building guarantees.

‘Under the current system, consumers may not fully understand the guarantee product they are purchasing or engage a builder without a guarantee, resulting in loss of cover.

Certified Builders Association of New Zealand has introduced mandatory building guarantees, a move made ahead of the government’s decision on whether mandatory building guarantees are needed.

‘It is important that we provide security for homeowners so that, if work is not completed to the highest standard, they can be confident that it will be remedied,’ said Grant.

CERTIFIED BUILDERS isn’t waiting for the outcome of the government’s review of this issue as part of the wider liability framework,’ said Certified Builders Chief Executive.

ID 528760825 West Coast Messenger, Greymouth West Coast 20 Jan 2016

Grant Florence. ‘We believe mandatory building guarantees are in the best interests of consumers and our members.

39

FEATURE —

COMPLAINTS ABOUT NON-COMPLIANT Quick guide to product substitution BUILDING PRODUCTS In response to recent media coverage involving allegations that some building products are unfit for purpose or non-compliant with the Building Code, the Ministry of Business, Innovation and Employment (MBIE) has established a dedicated email address to collect product complaints for analysis and investigation.

So we can investigate your complaint fully please include the following information:

We encourage you to get in touch with us at products@mbie.govt. nz if you have a complaint about a particular building product. Even though a number of concerns have been raised in the media, MBIE has yet to receive specific details or evidence for most of these.

• the reasons why you believe the product does not comply with the Building Code

We also encourage you to pass on this email address to anyone else you know has specific concerns.

• any other information you think supports an investigation.

• the name of the building product • where it was purchased or who it was supplied by, if this is known • any compliance information you have for the product from the manufacturer or supplier; such as test reports, assessments or calculations, claims of compliance, technical information etc

• any evidence of failure; such as photographs, or locations where it was used

Please email this to products@mbie.govt.nz or you can also post or courier it to:

Your efforts will greatly help us in our investigations and in trying to establish the degree of any problems within the building market.

Determinations and Assurance Ministry of Business, Innovation and Employment 15 Stout Street Wellington 6011

As the Commerce Commission is responsible for dealing with false or unsubstantiated claims as well as misleading advertising, please direct any complaints about such issues directly to them. We may also refer a complaint to the Commerce Commission if we believe it is within its jurisdiction rather than (or as well as) our own.

All information received by MBIE is public information and, if requested, we may have to release details about your complaint to other individuals organisations under the Official Information Quickor guide to product substitution Act 1982.

MBIE’s role and responsibilities in relation to building products are to monitor the market, investigate complaints and deal with products that don’t comply with the Building Code. An investigation by MBIE might result in a formal warning or ban issued on the use of a product, guidance issued to the industry, or more education provided to those involved in manufacturing, supplying, specifying or installing building products.

There might be grounds under that Act to withhold information you have provided (such as privacy concerns or commercial sensitivity).

Please indicate in your email or correspondence if there is any information you would like to be withheld. If MBIE decides to withhold any information, the requestor of the information can ask the Ombudsman to review the decision.

MBIE has recently updated its product assurance toolkit to help explain to product manufacturers and suppliers the various legal obligations they have and how to determine what they need to do to show their product complies with the Building Code. This toolkit is available online atwww.building.govt.nz/product-assurance.

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FEATURE —

TAKE THE LEAD ON HEALTH AND SAFETY Boards make health and safety a standing item on their agendas and should consider the health and safety implications of decisions on timeframes, budgets and bonuses. Health and safety is not something you do once and then file away on a shelf – there needs to be ongoing vigilance.

WorkSafe New Zealand’s Marcus Nalter explains what the new Health and Safety at Work Act means for construction company directors.

Construction is big business. It is a $30-billion dollar industry that generates about six percent of New Zealand’s economic activity and employs almost 200,000 people.

It’s not just one-way traffic though - workers also need to take responsibility for acting in a safe and healthy way. This means wearing the right gear (and reminding a mate who isn’t), following proper health and safety processes and taking five to plan how to do a task safely when a situation changes.

But it is also small business – 87 percent of construction companies employ fewer than ten people. For many of those businesses the owner will be the director, the chief executive, site foreman and probably orders the morning tea every second day.

While the law has changed, the fundamentals of keeping people safe on a building site have not. The law doesn’t change the way you put up a scaffold or set up an exclusion zone around a crane. But the Health and Safety at Work Act does require businesses to take identifying and managing risks seriously.

In a way, that should make it easier to keep on top of health and safety. The management and directors (at least in smaller operations) are less likely to be cut-off behind a desk at head office.

Even if you’re based at the office project managing you’re likely to have come up through the trades.

To be clear that doesn’t mean you have to eliminate all risks at any cost. That’s not possible, particularly in an industry that involves heavy machinery, power tools and working at height. But you need to have good processes for identifying risks and putting in place sensible controls.

That practical knowledge of the job at the management level is invaluable because when it comes to health and safety everyone needs to play their part. There needs to be leadership at all levels – and that starts at the top with directors and chief executives. Under the new law they have to do ‘due diligence’ for health and safety in much the same way as they are expected to for financial reporting.

After all, directors and chief executives will have huge influence over resourcing decisions, company policy, setting performance targets and a myriad of other things that can affect health and safety.

The trick is to make sure health and safety is integrated into your business at every level. Keeping an eye out for one another should be part of everyone’s daily routine. If it’s not already then now is the time to act. Not only will you and your workers be safer and healthier, so will your business.

Directors are not expected to be personally on site ensuring that workplace risks such as working at height and asbestos are properly managed, but they need to ensure their business is well set-up to handle health and safety. That’s more than just checking there’s a health and safety policy; they need to know that it’s working and have good reporting systems so they are fully informed about health and safety performance.

To find out more about the Health and Safety at Work Act, including details about worker engagement and participation, visit the WorkSafe website at worksafe.govt.nz/hswa.

For larger construction firms that might mean the Board sets up a Health and Safety subcommittee – as recommended by the Financial Market Authority. Lawyers Chapman Tripp suggest that

41

NAIL THE WHOLE JOB WITH US From the foundations to the fenceline you can get the whole job done with Mitre 10. We can supply and deliver your complete build, sort out any special orders, and help make the whole job go as smoothly as possible.

mitre10.co.nz/trade 42

FEATURE —

BCITO research proves that training apprentices generates profit. We recently conducted an in-depth research project that shows that for every $1.00 spent on training a carpenter, a business will benefit by $4.70 in increased profit up to a 10 year period.

Other findings of the project show that when compared with a business that doesn’t invest in industry training, a carpentry firm that trains all staff will:

This is the first time that this exercise has ever been undertaken in New Zealand and BCITO is delighted to be able to share these findings with the construction industry.

• Estimate work 3% more accurately

• Grow 6% faster • Charge $0.44 more per hour per person

• Do 2% less hours to complete the same task or project “It is such a worthwhile expense for every business to invest in training apprentices. Not only does having skilled workers improve your reputation and benefit your business overall, but this research now shows that over time your business’s bottom line is significantly improved. It’s fantastic news for industry training as a whole,” says Ruma Karaitiana, Chief Executive, BCITO.

There’s a misconception held by some that training an apprentice costs a business money with little or no return. This research proves that in the long run, that’s wrong. Investing in industry training is not just a cost to be minimised; it’s an investment that can grow your business.

Obviously the return on investment doesn’t kick-in immediately. The break-even point is 3-4 years – about the same time as completion of an apprenticeship – this is when the cost of training is offset by the extra profit generated by training. This extra profit keeps increasing the longer the trained person remains with the firm. So, yes, staff retention is a factor in this equation – the longer an employer keeps trained staff, the more profitable they become.

The methodology used in this project works back from a measure of economic return such as cumulative firm profits over time.

The drivers of profitability were broken down to identify individual attributes of a firm’s performance and evaluate the relative importance of these. The impact of a team’s trade and management proficiencies on these attributes was then considered. Finally the contribution of training to an individual's proficiency was weighted relative to the contribution from experience.

“During the past two years, BCITO has experienced unprecedented growth in new apprenticeships, but the construction industry still remains woefully short on skilled tradespeople. We need more businesses to come on-board and train our young people. With this research completed we can clearly prove that training an apprentice is a positive investment for employers,” Greg Durkin, Group Manager, Stakeholder Engagement, BCITO.

Most business owners involved in the research project agreed that on average, trained workers become fully proficient between 6 and 10 years after starting work in the industry. On average untrained workers take a much longer time to be fully proficient and will only ever be 60-70% proficient, whereas trained workers become “fully billable” in a much shorter period of time.

As part of the project carpentry business owners were asked about their firms’ structure, in terms of the number of people working there and what roles they were in. From this information a model of an average firm in the industry was developed.

In terms of the cost of training an apprentice, the research has taken into account training fees, Government’s subsidy for industry training, apprentice salary and the cost of supervising and training an apprentice.

While the payback period for both trained and untrained workers appear similar, the positive return from training is sustained well into the future, increasing the cumulative benefit each year.

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ASSOCIATION NEWS —

NZCB MERCHANDISE Warm up with some winter woolies!

SHEPHERD FLEECE VEST $65

SCRUFFS CLASSIC TECH SOFTSHELL JACKET $123

• Showerproof

The technical softshell uses a unique knit design to deliver a fully waterproof and windproof work jacket. The jacket is made using 8000mm waterproof and 1000mm breathable fabric offering fully protection against the bitter cold of winter. It also features an ergonomic sleeve design and secure zip pockets.

• Inner pockets (one is for cellphone) • Two front pockets • Mostly black with grey panels across the shoulders • Warm Shepherd Fleece lining

• Soft shell fabric with unique knit design

CABLE KNIT BEANIE $20

• 8000mm waterproof fabric

• 100% acrylic

• Soft brushed collar

• Cable knit

• Multiple zipped pockets

• One size fits all

• Outside Material: 96% polyester, 4% elastane

• 1000mm breathable fabric

• Polar fleece lining around the brow

• Lining Material: 100% polyester • Please note NO NZCB branding

SYZMIK MULTI POCKET HOODIE $70

SCRUFFS PRO WORK TROUSERS $152 Work Trousers with Multi-function Pockets. These premium quality, highly durable, curved leg designed work trousers are reinforced with Cordura®. They have a multitude of ergonomically designed pockets and include meshed zip vents on the inner thigh for comfort in warmer weather.

• 55% Polyester 45% Cotton • 320 gsm • Safety drawstring to prevent catching • Woven arm pen pocket in contrast fabric • Two angled side hip pockets with velcro closure for mobile phone and tools

• Hardwearing heavy weight poly/cotton fabric • Cordura® bottom loading knee pad inserts

• Two kangaroo pockets to keep your hands warm even on the coldest days

• Cordura reinforced hem and pockets • Multiple secure, functional pockets including phone, ruler, pen and cargo pockets

• Soft warm fleece lining

• Hammer loop

• Mesh hood lining

• Reflective detailing for added visibility

• Ribbed knit on hem and cuffs

• Triple stitched seams

• Reinforced at all key stress points with bar tacks

• Mesh zip vents to the inner thigh for comfort in warmer weather

STEALTH TECH HOODIE $95

• Gel print to the inner waist for extra grip

• Front Body: 100% Quilted Nylon Ripstop

• 330gsm material weight

• 65% polyester / 35% cotton • Curved leg

• Back/Sleeves: 95% Polyester, 5% Elastane Stretch Bonded Fleece • Insulation: 100% Hi-loft Polyfil • Insulated quilting on chest front for lightweight warmth • Thumb loops to keep hands warm • Modern Fit – Follows the shape of the body with ease added for movement

www.nzcb.nz/members/online-shop/

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ASSOCIATION NEWS —

ARE YOU INSURED IF YOUR HEAD CONTRACTOR GOES BUST?

What would it cost your business if a head contractor you’re working for goes bust without paying you?

“Are you covered if your principal contractor goes into liquidation?”

The Stonewood Homes Christchurch collapse is a timely wake up call for all building subcontractors to take out insurance to protect themselves from the cost of such an event.

Although the policy doesn’t cover retentions, these will soon be given greater protection by changes to the Construction Contracts Act, and subcontractors can always opt to provide a bond in lieu of retentions.

Subcontractors Payment Guarantee cover was introduced to the market in the wake of the collapse of Hartner Construction in 2001. In February 2013 Mainzeal Construction collapsed, leaving subcontractors out of pocket to the tune of around $70m. In February and almost three years to the day since the collapse of Mainzeal, Stonewood Homes NZ, along with its Christchurch franchise, were placed into receivership, owing an estimated $15m to unsecured creditors, including hundreds of subcontracting firms.

Contact Gwenda or Rachael at CBA Insurances to find out more and get a quote.

“Are your subbies covered if another firm they’re working for collapses? Do them a favour and let them know about payment guarantee insurance.”

These large, high profile collapses are the tip of the iceberg and dozens of firms go bust every year, leaving their subcontractors unpaid for work done. Two other regional Stonewood franchises are currently in liquidation, along with at least a dozen other building companies nationwide. “It may seem counterintuitive but there’s as much risk of a business failing during the boom times as there is during a downturn, and Stonewood is a prime example.”

CBA Insurances is an insurance broker for members of New Zealand Certified Builders Association. The team has extensive experience specialising in insurance for builders. Contact Gwenda on 0800 237 843 (ext 2) or gwenda@cbainsurances.co.nz.

Subcontractors Payment Guarantee cover reimburses 75% of a subbie’s unpaid invoices in the event that their main contractor becomes insolvent. Limits of $25,000 and $50,000 are available.

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MEMBERSHIP BENEFITS

ASSOCIATION NEWS —

and your fleet uelcard

Are you taking advantage of your Membership Benefits?

Special members price for AA membership

Vodafone

AA Business Care – Passenger Standard $43.00 per vehicle per year.

Normally costs $67.00.

0800 422 202 for some great

Contact Michael Wilson on business smart plans with up to one month free on signup!

em to manage fleet costs ts and product restrictions

200 retail stores, 60 truck ites nationwide

pfuelcard.co.nz

A range of stationery available including: presentation folders, letterhead, self-adhesive logo stickers, electronic NZCB logo’s, invoice books, variation books, subcontractor forms, site signage and much more. View our online shop under the members section of the website.

We have partnered with Fisher & Paykel to bring you discounted prices exclusive and confidential to members. Take advantage of these special prices and pass on the discounts to your clients to sweeten the deal.

The Caltex StarCard® is an excellent way to efficiently manage your fuel expenses and reduce your running around costs. t: 0800 733 835

Check out the NZCB website for the latest monthly price list.

bpfinder.co.nz BP & G.A.S Alley Discounts Save 7 cents off the pump price at BP, BP Truckstop and G.A.S. Alley stations across the country with no card or transaction fees. Simply download the application form on the Deals & Discounts page of the members website.

13/09/13 1:36 PM

Noel Leeming discounted member prices exclusive to NZCB.

Certified Plans Access to the resources of CBA Insurances Limited – your general Insurance Brokers.

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This scheme is a powerful new tool to help secure new clients and new home building projects! The plan range consists of approximately 24x architecturally designed new home plans.

We help you get licensed! We have created a streamlined process for our members to make it quicker and easier for you. We also have LBP stickers available for purchase. There is a selection of vehicle size and stationary stamp size decals. NZCB liaise with Council and DBH giving guidance on compliance. We have also created a great tool for builder’s onsite – a detailed Licensing Handbook which is a paint by numbers approach with all things licensing on site, so you can get on with the next job and not waste time chasing compliance documents.

NZCB and Toyota Finance have teamed up to give members a BIG FINANCE deal on Hilux and Hiace. With Toyota’s proven reliability, strength and versatility to get big jobs done this is an amazing offer not to be missed. So what are you waiting for? Go in to your local Toyota dealer and mention you’re a Certified Builder for some great Tradies deals.

MEMBER

Site Safe Ensure that your Health and Safety is up to scratch with Site Safe’s Safety By Steps – join Site Safe and get 10% discount off. If you are already a member of Site Safe you can apply for the 10% discount after 1 June 2015 by stating that you are a current member of NZCB.

NZS3604:2011 Get the members rate for the new version of the NZS3604:2011, E2 Moisture Manual 2011, NZS Onsite Handbook or any other Acceptable Solution.

INHOUSE Magazine The official Magazine of NZCB – comes to your letterbox bi-monthly bringing you up to date with issues that affect members and happenings within the Association and the Industry.

Need some of the world’s most durable outdoor clothing for doing the stuff you enjoy?

Hunting, fishing, building or sports? Grab your Swazi gears at trade price! Join Clan Swazi as a NZCB member today and you will be able to purchase Swazi Clothing at special NZCB prices! www.swazi.co.nz/Prodeal/NZCB

Clothing As a member you can purchase a range of clothing which comes with the NZCB logo embroidered or screenprinted. T-Shirts, polo shirts, vests, jackets, overalls, hoodies, beanies, and sun hats all available for purchase! Why not get your company logo on your clothing too? View our online shop in the members ToolShed.

Regional Trade Training and ToolBox Seminars Regular Trade Training and ToolBox Seminars in your region which are provided to both up skill your knowledge as well as teach good business practice. LBP Skills Maintenance Points are awarded for attendance.

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ASSOCIATION NEWS —

Licensed Building Practitioner

ASSOCIATION NEWS —

BE REWARDED FOR YOUR SPEND WITH PLACEMAKERS Here at PlaceMakers, we’re proud to be a trusted member of your team. So we’re delighted to tell you that we’ve now made doing business with us even more rewarding with the launch of our PlaceMakers Plus loyalty programme.

HEAD TO PLUS.PLACEMAKERS.CO.NZ AND SEE HOW YOUR HARD WORK CAN TAKE YOU PLACES!

QUIZ THE GREY MATTER MASONRY CONSTRUCTION MATERIALS AND WORKMANSHIP NZS 4210:2001 1

What is the length of time required for mixing of mortar in a mechanical mixer?

2 What is the required 28-day compressive strength of mortar?

3 To correct out of vertical/horizontal, what is the maximum allowance of thickness of a mortar bed to the bottom course?

4 Masonry units may overhang a supporting foundation by how much?

5 Horizontal reinforcing required in grouted cells must sit above or below a mortar join by how much?

6 Tolerances – Optimal mortar joints measure 10mm. What is the maximum allowable deviation from this?

7 What is the maximum tooling depth of mortar on an external masonry wall?

8 What is the minimum embedded length required for a wall tie?

9 When rodding grout to gain compaction, the rod should be a minimum of what diameter?

10 W aterproofing – Surface coating of a masonry wall shell not be applied until the moisture content of the wall is below what moisture percentage?

1 5 minutes or in accordance with manufactures requirements for admixture 2 12.5mpa [compliance with NZS 3604 and NZS 4229] 3 20mm at any one point. 4 20mm 5 25mm 6 ± 3mm 7 6mm 8 15mm 9 16mm 10 70% relative humidity [or as per manufactures specification]

Answers:

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MESSAGE FROM THE CHIEF EXECUTIVE —

MESSAGE FROM THE CHIEF EXECUTIVE This boom cycle hopefully will not have its own set of consequences – maybe in years to come. Time will tell.

Have you registered for our AGM and Annual Conference yet?

As I highlighted in the last InHouse magazine the Board agreed to review its shape and size which resulted in a proposal to members to amend the Association’s Constitution. These changes are to a smaller Board in reducing numbers of Directors from a total of 12 to a total of 6. (Four member Directors and two Additional Directors).

If not, I encourage you to get online now and register as this year’s event is looking to be the biggest and best that we have held. The event is to be held in Wellington (TSB Arena) 27th and 28th May. We have a strong line up of speakers and education workshops as well as a bit of fun. Why not attend the Conference and spend a few days of R and R in the amazing welly….

This change to the Constitution was accepted by members and we are now in the next phase of the process of seeking nominations for the Member Directors of the Board and conducing an election in which I encourage all members to vote, when these nominations are finalised and voting papers/details are distributed.

I look forward to seeing you there!

Over the past 3 months I have been undertaking the presentations on our new brand and Residential Guarantee Insurance changes.

The response I have been getting from these presentations continues to be very positive on both the brand and residential guarantee insurance fronts. The structuring of our Residential Guarantee Insurance certainly got some positive endorsement on the TV1 News segment recently.

It has been great to meet many of you again and it is encouraging to hear from you that the general level of building activity remains strong across most of the country. These high levels of activity unfortunately do not come without its own set of problems and a shortage of skilled trades was something that we forecast around 18-24 months ago.

This forecast was accompanied by commentary to regulators and our political masters for a plea to take steps to reduce the ‘boom – bust’ cycles that our industry seems to inflict on itself.

Grant Florence Chief Executive

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GIB PLASTERBOARDS CONTROL JOINTS 速

For specification and installation details, download the brochure from www.gib.co.nz/library keyword: control joints brochure For more information call the GIB速 Helpline 0800 100 442

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