December 2016 January 2017

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

December/January 2017 — Member of the NZ Order of Merit Pg 9

Tom Walsh as ITAB ambassador Pg 32

Centrespread —

Behind the scenes of our latest TVC Pg 26

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IN THIS ISSUE

Do You Have a Similar Story?

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From the Operations Desk

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Around the Regions

4

Feature: MNZM

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Haven’t we come a long way with Health and Safety (H&S) since then? Yep, sure you can fight it or you can embrace it and look for ways to do it better.

Recently, there have been some great examples of how our NZCB members are being proactive to make the H&S systems more effective and easier to implement.

Feature: Toolbox Seminars 2017

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Certified Plans

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Feature: Save the Date!

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Feature: Halo Enhancement

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Feature: Be Careful who you contract with

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Feature: BCITO - Ability Challenge 2016

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Feature: CCA Retention Regime Nearly Here

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Take Jason’s (our NZCB Operations Manager) recent work on electrical compliance, and removing the requirement to do 3 monthly tag and tests. Also, more recently, our Canterbury President, Pat Coughlin, has been working closely with Work Safe NZ to create a daily site task board as an alternative to the large amount of paperwork required in a Site Specific Safety Plan (SSSP). Pat has even starred in a video explaining how they use the Board with their staff and subbies. Check it out on the Work Safe website or the NZCB Facebook Page.

ITAB

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So, who has been benefitting from articles and discussions on the NZCB Facebook Page? As an effective element of the online world, FB along with other online avenues such as your website, is fast becoming an essential communication tool in our industry. I know many of us would rather bang in nails but I would encourage you all to upskill yourselves in the online world, because it is just another tool you need to have along with those hammers and nails.

There have been some great discussions on the NZCB Facebook page, don’t be afraid to get on there and use it!

AST Trust

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Feature: Reflect on personal & professional objectives

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Feature: Employee conduct out of work

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Feature: Gross Margin Optimisation

41

Feature: Overlapping PCBU Duties

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From the Media

44

Beacon

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Feature: LBP Scheme

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Message from the Chief Executive

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BEHIND THE SCENES OF OUR NZCB TVC

I recently attended the Wellington Golf Day. Thanks, guys for inviting me along. It was a great day and a well organised event, with the Apprentices offering some great entertainment. It’s easy to forget how valuable these days are for networking with our fellow builders.

Great to see the construction of our new National Support Office is underway. This is always a great milestone in any project following all the work required to get to this point, our building was no different.

Watch out for updates in ‘InHouse’.

I hope you have all had a great 2016 and that the work continues to flow throughout 2017. With the upcoming Christmas break its time to put away the tools and bring out the toys! Have a great Christmas and New Year.

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 www.nzcb.nz ISSN 2463-3305

Regards, Brent

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Brent Chatterton Chairman

ASSOCIATION NEWS —

Message from the Chair

A few years ago when I was still on the tools we were putting up trusses, standing on the top plates, and the builder on the other end gave it a push towards me and I fell backwards to the ground of a single storey building, luckily landing on my feet. I jumped back up the frames, yelled a few unrepeatable words to the other builder and then carried on as if nothing had happened.

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ASSOCIATION NEWS —

LBP DISCIPLINARY HEARING I have myself experienced a hearing after being summoned.

The hearing itself is a relatively relaxed affair with evidence given under oath and does not look to cross examine the LBP like you might see in a courtroom drama on TV. However, the element of uncertainty can often be daunting for the LBP and so I am more than happy to talk you through what lies ahead.

Appearing before the Building Practitioners Board can be a lonely and daunting experience. Having your work and your conduct scrutinised is not something any builder signed up for.

Should you find yourself in the position of facing a hearing I encourage you to call me at National Support Office, I’d love to hear your story. I deal with conflict daily and I know there are two sides to every story. When an investigation is made into the claims against an LBP it is based on the facts of the day, and the contractual background can often get lost. Often these contractual issues impact on the state of workmanship which is being investigated.

I often talk with one of the contractors MBIE uses as a special advisor, their job is to investigate the claims made against the LBP. He tells me stories where the LBP was actually a very good builder but did not relay this in an articulate way to the BPB and so probably got more then they deserved, don’t let this happen to you, give me a call and we can work together to better prepare your case when facing a visit to the BPB.

The process of a complaint is broken into two parts, firstly the Board decides if the claims made against the LBP needs investigating and will ask the Registrar to conduct a report on the complaint. The LBP will be notified a complaint has been laid against them and will be given an opportunity to respond to the claims made. If the claims are of a very serious nature and the eventual outcome of the case may have impact on the livelihood of the practitioner, then assistance from lawyer Geoff Hardy might be recommended. Generally, however the complaints are low level and it’s about the LBP better understanding their obligations as a builder operating within NZ law, and giving this some consideration within their response.

Once the registrar has completed the report the Building Practitioners Board [BPB] will decide whether there are grounds for discipline, for this to happen the BPB are guided by conditions stated in the Building Act, it is not decided on the level of conflict the client might be making the claims. If the BPB accepts there is legitimate grounds for a hearing these are usually held in a main centre nearest the LBP. The LBP will get the opportunity to view all allegations and will be allowed time to respond, this response will form the LBP’s evidence at the hearing. At the hearing members from the BPB present, will ask both the LBP and the client questions enabling them to gain balance where there might be conflicting accounts of details. A special advisor may also be on hand giving the BPB evidence of what they saw on site when doing their site investigation.

Jason McClintock Operations Manager

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ASSOCIATION NEWS —

NZCB TAUPO CHARITY GOLF DAY 136 strong field complete the course and get back to the Clubhouse for the Auction and Prizegiving.

The 3rd Annual Taupo Charity Golf day on the 11th of November 2016 was a huge success with 34 teams competing and 16 Hole Sponsors.

Final figures are not available at this point but both Cystic Fibrosis and our own Apprentice Trust will be receiving funds.

Our Charity this year was Cystic Fibrosis NZ, in support of one of our Local members Paul Riedel who is running every day of 2016 raising funds and awareness for a cause very close to his heart, with one of his children having Cystic Fibrosis. You can follow Paul on Face Book Run365.

With the success of the charity day, plans are that it will be back for a fourth year in 2017. NZCB Chief Executive Grant Florence and Derek Larsen, Broker Web joined the members for a very successful day on the course.

The Day was all about having fun and there was plenty to be had with several BBQs and a couple of cold ones to help the

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ASSOCIATION NEWS —

CANTERBURY EXPO Camp Quality. There was spirited bidding on most of the items, which resulted in us finishing with just over $5,900.00 to go to Camp Quality. Look them up online to see what great work they actually do.

The Canterbury branch held a Building Expo on October 15th. We chose Camp Quality as the recipient charity for any money that we made after expenses and we finished the day with an auction of donated goods and services. These items ranged from simple gift vouchers through to a ‘House Auction’ package donated by Harcourts Grenadier Realty.

Although the number turnout wasn’t as good as we hoped, all the exhibitors were happy with the engagement from those who made the effort. All have asked to be informed when we have another similar event so they can be part of it.

Thanks go to all the sponsors (and their generosity) and to the members of the local committee who gave up their Saturday to make this happen.

We were fortunate that our costs were covered by sponsorship, so all money raised from the auction will go to

Richard Poff, Damian Young Christchurch Regional Manager Camp Quality, Zac Wilkinson.

AROUND THE REGIONS Pat Coughlan presenting Colin Satherley with door prize 40 LED TV donated by Noel Leeming Commercial.

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ASSOCIATION NEWS —

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 6

ITM AUCKLAND SUPERSPRINT

AROUND THE REGIONS

Huge thankyou to ITM for allowing members of the Auckland Committee (and honorary member Richard Seeger – many thanks Richard), to fly the NZCB flag at the ITM Auckland SuperSprint 2016 at Pukekohe Raceway 4-6 November.

Thankfully our marquee provided good shelter as it certainly was a tad chilly up on the hill – a great position to view the races though for the petrol heads amongst us! Tim Timber, ITM’s mascot, certainly had a fabulous time also!

Paul James presents Mike Ward with a meal gift card as a thank you to Mike and Mike’s wife Celia Ward.

WESTERN BAY OF PLENTY REGION

RETIRING MEMBER MIKE WARD

WAIKATO REGION

TRACEY NOLAN

At a recent Trade Training night in Tauranga I was privileged with the opportunity to acknowledge the retiring membership of a respected local member Mike Ward.

Tracey Nolan came aboard with the Waikato committee in 2012 as a regional coordinator in a temporary 12-month position but ended up doing 4.5 years’ service.

Mike first joined Certified Builders Association in July 1989 and because 1989 was the year the Association was formed; Mike is one of our longest standing members in the Western Bay of Plenty.

Tracy applied herself in a diligent and helpful way in supporting the President. A small token of appreciation was presented to Tracey recently for all her efforts.

As a builder Mike is a great representation of the Association’s core ethos, a true craftsman with skills honed over many years, he was a honourable caretaker of our local industry, turning out high calibre employees. Mike was a regular at our local meetings as well as serving many years on the WBOP committee, playing an integral part with several Certified Builders events.

“Mike we all wish you well as you hang up your toolbelt”.

Paul James WBOP President NZCB

Warwick Leigh-James presented to Tracey Nolan

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MOBILE SCAFFOLD TOWER

ASSOCIATION NEWS —

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Now that Warwick Leigh-James and Dave Brown have a number of Building Insites presentation under their belts, we are starting to see trends of which act as feeders to poor build quality. Warwick is quick to remind the builders the most important person on site is the apprentice. The apprentice is tomorrows future and its everyone’s job on that site to ensure he/she is exposed to a learning environment which will produce an apprentice capable of lifting the industry from today’s performance, to a future which will offer a more challenging build environment.

HERE’S A SMART PLAN.

Given the poor practice on many sites witnessed by our Building Insites team, it is evident these builders were learning their craft in an environment which did not offer best practice, but rather one of “what can we get away with”. Take five and give your site a health check, is it offering your apprentice a learning environment or is it another case of “we are just too busy to spend the time we should be putting into our apprentices.” If these employers are not making a conservative effort to insure a well-trained apprentice, then who is?

CARTERS are fully integrated with Certified Builders Certified Plans module.

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Building Insites is a joint initiative between New Zealand Certified Builders and BRANZ, taking construction education directly into building sites, currently in its pilot period Building Insites is canvassing building sites from north Auckland to south Waikato.

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

Jason McClintock Operations Manager

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In amongst all this fun and excitement Kent has managed to fit in a building career. Whilst his father was a builder and Kent probably served half his apprenticeship before he was twelve, it wasn’t his first choice as a career. However, by 24 years he realized that he had a few skills in this area and as the saying goes, “the rest is history “.

Kent started lifeguarding as a 16-year-old which makes it 50 years of active patrolling.

He has been a Patrol Captain or mentor since 1974 at Mount Maunganui Lifeguard Service. During that time Kent received: • Lifeguard of the year 1988/1989

Living in Mount Maunganui has meant driving around with not only tools of trade but a rescue tube and a pair of fins, as from an elevated position in his van, he has spotted the odd swimmer in distress. The sound of sirens heading to his Club two years ago whilst he was working close by led to his absence from the job for about ten days whilst the Club searched fruitlessly for young Jack Dixon.

• Eastern Region rescue of the month 2013 • National rescue of the month March 2006 and April 2012 • Twice nominated for NZ Rescue of the year 1982 and 2006 • Surf Lifesaving NZ Guardian of the Sea Award March 2001 and 2003 Kent has been driving IRB’s since 1975 and is still a current Examiner.

Fortunately, such occasions are rare and more often than not what the Surf Club does as Lifeguards has a happy outcome.

To be recognized for doing something that Kent has loved is quite humbling. To be part of such a great service, special.

His Life Memberships are: • Mount Lifeguard Service 1999 • Surf Lifesaving Bay of Plenty 1989 • Surf Lifesaving NZ 2007 Kent was a founding member of the Mount Maunganui Lifeguard Service (LGS) callout squad in 1978 which has involved numerous after hours’ callouts, some fairly epic and sadly a few tragic. He has managed to do at least one rescue per year with the 25 pulled out in the rescue in a one and half hour period being pretty memorable.

On the competitive side of things, Kent managed a few national titles both in Surf competition and IRB. Several highlights for him were the ten district ironman titles and his two Golds ten years apart in Tube Rescue.

In 1989 Kent was privileged to be appointed the National Development Squad Coach, a position he held for five years.

This was an exciting time working with a talented group of lifeguards many of whom went on to represent our country.

As in all things in life, many of the things Kent has achieved would not have happened without being surrounded by passionate, brave and likeminded people.

Western Bay of Plenty member Kent Jarman was presented with his medal

by Governor General Dame Patsy Reddy.

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FEATURE —

MNZM – MEMBER OF THE NEW ZEALAND ORDER OF MERIT

TOOLBOX —

TOOLBOX SEMINARS 2017 We’ve broken the Seminar Series into three parts, round one – pre-contract, round two – contract phase and round three post contract. Each seminar will pick up the five points in relation to each build phase.

Building in today’s complex environment requires many balances and checks.

For our 2017 ToolBox Seminar Series, I have taken five main points for builders which are costing members valuable time and money.

I’m throwing in added information on the Halo Guarantee as it’s offering great benefits to members and sub-contractors who are also Business members.

• Changes to the LBP Skills Maintenance Scheme – Get the job done quick and easy

Jason McClintock Operations Manager NZCB

• Consumer protection measures [disclosures, contracts, defects period] – Breaking it down into builders speak • Building contracts – What’s in it for the builder • Builder liabilities – How builders are getting caught out • Ensuring payment – Cash is king, use the leverage of contracts and Construction Contracts Act to ensure you’re getting paid.

For a quality result, choose an AWCI Certified Business for professional interior lining and finishing

A full list of Business members can be found

on www.awcinz.org.nz or phone 0800 292 469

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Seminar Series

BUILD QUALITY

HAVE WE GOT IT RIGHT? Recent research tells us our industry is still missing the mark when it

www.nzcb.nz WWW.NZCB.NZ

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TOOLBOX —

+

PENCIL IN YOUR DIARY NOW

CERTIFIED PLANS —

2016 HAS BEEN A GREAT YEAR! Member Testimonial

Fifteen new members have joined the Certified Plans scheme this year giving us a total of over 180 members. Eight new designs were released at Conference in Wellington in May and these designs cater for smaller sections, sloping sections and smaller rural properties. Already we are seeing members use these designs.

Brendon Barnett from BB Construction Limited, Palmerston North joined Certified Plans in November 2015. One year on and Brendon is having great success with the Certified Plans initiative and he has also built his own home which originated from the Kowhai design. Whilst many changes have been made to this design to suit Brendon and his family’s lifestyle there are still some key features of the Kowhai which remain.

Additionally, several successful online marketing campaigns were run during 2016 and the number of enquiries increased for our members not only regarding Certified Plans but also general construction. Sales seminars were held in the regions hosted by international sales speaker Bill James and the feedback from attendees was very positive enabling them to bring these learnings in to their day to day processes. We hope to run more of these seminars in different regions in 2017.

As we come to the end of this year we wish our members and their families all the best for a safe and Merry Christmas and look forward to a prosperous and positive New Year.

LATEST CERTIFIED PLAN MEMBERS!

Dropbox Update Recently revised pricing for our full range of Certified Plans was sourced from the QV Cost Builder system which provides the latest NZ Commercial & Residential Construction Costs.

Updated indicative costings for our range of 32 plans can be found in your Dropbox.

Tim Cain Cain Built Limited, Auckland

This review of the pricing has showed us the indicative homeowners price per design has increased from between $3,000.00 to $70,000.00 for a small coastal plan to a large rural plan. Because of our findings this is now reflected on the Certified Plans website. Any queries please do not hesitate to contact Julie @ julie@nzcb.nz

Peter McGrath Coastal Construction Whitianga Limited, Whitianga

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To Whom It May Concern, Re: Certified Plans & BB Construction Limited We are writing this letter of testimonial to expr ess to the association our appreciation of the enquiry we have generated through joining Certified Plans.

Since we started our campaign & membership with Certified Plans we have embraced the over all concept. We have seen endless opportunities and enquiries coming through the door and the Certified Plans website and it has not only stee red people in the right direction, it has also poin ted people to our own website www.bbconstructi on.co.nz. In doing so this has educated our clien tele further on our skill set & our point of differenc e.

We have seen over ten plus genuine enquiries turn into sales and some of significant value that we are still working on today. Not all have been Cert ified Plans designs in the end, however they have assisted in potential clients expressing interest, using the sets of plans as a point of reference and a starting mark. During initial enquiry to final working draw ings we have used bits and pieces of these plans to get our clients creative instinct and imaginatio n flowing…

We have also used the plans for three of our own spec homes thus far which we altered to suit the sites and we plan to use the new Tawa desig n in a rural setting early in the New Year.

We have recently used the Harakeke, Kowhai, Tawa, Karaka, Ponga and Towai designs som e of which are in a sales state and others have been turne d into working drawings.

The entire system has been an absolute pleas ure and we appreciate the fact the managem ent team and Julie have been extremely open and helpf ul through the process of our roll out.

Although Residential housing hasn’t necessari ly been our core business, we have found by joining both Certified Builders and Certified Plans this has strengthened our brand, our brand awar eness and brings us up to the next level.

In my opinion if any prospective members are looking to join Certified Plans, I urge you to take the next step and get involved. It’s a system tried and tested which fits into your current marketing and campaigns “as if you have always been involved.”

If you would like to discuss any part of this lette r or if you would like to know more about how we have incorporated Certified Plans into our daily sales, feel free to contract me through our webs ite contact page.

Yours Faithfully;

Brendon Barnett General Manager/Director

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CERTIFIED PLANS —

New Zealand Certified Builders Association Farming House 102—104 Spring Street Tauranga 3141

ASSOCIATION NEWS —

SAVE THE DATE!

26th & 27th of May 2017 Navigating the Course Ahead 19th Annual NZCB Conference & Expo ANZ Viaduct Events Centre - Auckland!

Conference Giveaways: This year we are giving ALL delegates a NZCB branded laptop bag and NZCB branded compendium, to make you look ever so smart and professional when you turn up at your client’s house. But you have to be at conference to get your free bag and compendium, get one step ahead of your competition by raising your professionalism.

Accommodation Deals: We have secured some FANTASTIC accommodation deals for our delegates and trade exhibitors, for full info please go to the conference information on the member’s only ToolShed.

Rydges Auckland : 59 Federal Street, Auckland Pricing details includes GST & excludes breakfast: • Superior or Deluxe City View (King/Twin) rooms $199.00 • Buffet breakfast at a special discounted rate $26.00 per person per day To make a booking at Rydges: Email: reservations_auckland@evt.com Phone: +64 9 375 5900 press option 1 for accommodation reservations Quote: Block ID 751079 (to get the special rates) Mercure Auckland : 8 Customs Street East, Auckland Pricing details includes GST & excludes breakfast: • Superior rooms $229.00 • Superior Harbour View rooms $269.00 • Full Breakfast Buffet $32.00 per person per day

Heritage Auckland : 35 Hobson Street, Auckland

To make a booking at Mercure go to: http://www.accorconferences.co.nz/customoffers/19th-annual-nzcb-conference-and-expo

CityLife Auckland : 171 Queen Street, Auckland Pricing details includes GST & excludes breakfast: • Superior room $219

Best Western President Hotel : 527-35 Victoria St West, Auckland

• Deluxe Suite $269

• Pricing details includes GST & excludes breakfast:

• Breakfast $28 per person per day

• Twin rooms $159.00

To make a booking at either the Heritage Auckland or City Life, go to:

• Breakfast $20.00 per person per day

http://www.heritagehotels.co.nz/

Email: res@presidenthotel.co.nz

Select Rates & Reservations, then select the dates and the hotel that you require along with the promo code NZCB17

Phone: +64 9 303 1333

To make a booking at Best Western President Hotel:

Quote: Reference #116062

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Draft Agenda: A sneaky first peek at the draft agenda for next year’s conference where we will be Navigating the Course Ahead…

Timing

Activity

Room Thursday - 25th May 2017

9am to 5:15pm

Factory Tour - Venues TBC

Meet at VEC Friday - 26th May 2017

7:30am

Registration desk opens

Waiheke 2

9:00am

Annual General Meeting (members only)

Kawau 1

10:30am

Morning tea

Waiheke 1

11:00am

Welcome from the Chairman of the Board of Directors

Kawau 1

11:15am

Keynote Speaker - TBC

Kawau 1

12:00pm

Forum - TBC

Kawau 1

12:30pm

Lunch

Waiheke 1

1:30pm

Interactive Ice Breaker

Kawau 1

1:45pm

Official Conference Opening

Kawau 1

2:30pm

Keynote Speaker - TBC

Kawau 1

3:30pm

Afternoon Tea

Waiheke 1

4:00pm

Keynote Speaker - TBC

Kawau 1

4:30pm

Keynote Speaker - TBC

Kawau 1

5:00pm

Happy Hour

Waiheke 1

6:30pm

Maritime Museum Mingler

NZ Maritime Museum Saturday 27th May 2017

7:30am

Registration desk opens

Waiheke 2

8:30am

Educational workshops - round 1

Breakout rooms

9:30am

Educational workshops - round 2

Breakout rooms

10:30am

Morning tea

Waiheke 1

11:00am

Educational workshops - round 3

Breakout rooms

12:00pm

Educational workshops - round 4

Breakout rooms

1:00pm

Lunch

Waiheke 1

2:00pm

Keynote Speaker - TBC

Kawau 1

3:00pm

Official Conference Closing

Kawau 1

3:40pm

Charity Auction

Waiheke 2

3:40pm

Happy Hour

Waiheke 2

7:00pm

The Deep Blue Awards Dinner - pre dinner drinks

Rakino

7:30pm

The Deep Blue Awards Dinner

Kawau 1 Sunday - 28th May 2017

10:00am to 1:00pm

Optional Sunday Tours - TBC

Hotels

Times and agenda structure may change without notcie given, based on availablility of speakers etc...

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ASSOCIATION NEWS —

Draft Agenda

ASSOCIATION NEWS —

HALO ANNOUNCEMENT Halo is now available for farm, commercial, light industrial and other non-residential buildings.

Whilst it won’t be compulsory for you to take out the Halo Guarantee for these projects, you will also have the Builders Sleep Easy Indemnity Cover with its unique protection, that goes with the Halo Guarantee.

Following the successful launch of the Halo 10 Year Guarantee for residential buildings, Lloyd’s have agreed to extend the policy to include cover for farm, commercial, light industrial and other non-residential buildings.

To get a quotation all you need to do is complete a Halo application form and email it into halo@bwrs.co.nz along with a copy of the plans and specifications.

This means you will now be able to offer the Halo Guarantee with all its benefits and advantages when you are tendering for these projects; giving you a real point of difference.

Halo Guarantee Handbook now available for members of NZCB The handbook has everything you need to know on the Halo Guarantee including: • Benefits for the homeowner and the builder • Application process • Application example • Claims process • Premium and Excess Guide • Halo Checklist The handbook is available to download from the members ToolShed.

Hard copies can also be ordered.

Become an expert on the Halo Guarantee today!

If you have any questions regarding the Halo 10 Year Residential Guarantee, please contact Brittany Robertson at the National Support Office on 0800 237 843 or BrokerWeb Risk Services on 0800 644 444 www.nzcb.nz/members/10-year-guarantee/

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The Halo Guarantee application form asks for the ‘Original Contract Price’ which means the value of your contract i.e. the price noted on your NZCB Building Contract. When you are doing a labour only job, the contract value should be treated as a minimum sum insured, however, depending on the work you are undertaking and the value of the entire scope of works, this sum insured may not be sufficient in a worst-case scenario.

With this in mind, we encourage you to use your own discretion to determine what value is appropriate. If you apply for the Halo Guarantee with a selected value over and above your contract price, we ask that you make note of this clearly on the application form.

A similar approach should also be considered when you are doing additions and alterations.

Consider that the cover extends not only to fixing any defect but also any damage to existing structures caused by the defect.

Professionally printed brochures can be ordered from the members ToolShed. Perfect for passing on to the homeowner!

ensive Compreh year Halo 10 ial residenttee guaran e insuranc Under writte

LLOYD’S

n by

ON OF LOND

Brittany Robertson Halo Guarantee Membership Support

A reminder that it is mandatory for all Business Members of NZCB to take out the Halo 10 Year Residential Guarantee on all residential projects (both new and alterations) that are $30,000 (incl gst) or over.

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ASSOCIATION NEWS —

SELECTING THE SUM INSURED FOR LABOUR ONLY CONTRACTS

Some history The building site at 10 Marsh Street is located at the foot of the banks of what was the Mission Station (now known as The Elms), which was established in the 1830’s by Archdeacon Alfred Brown and his wife Charlotte.

The Elms Mission House is widely regarded as one of New Zealand’s finest surviving examples of the Georgian influenced colonial style, so the area holds great significance to Tauranga and New Zealand. There were no architects in Tauranga during this time, so it was most likely designed by George Clark, who also designed the Waimate Mission House.

Maori also used the site as a canoe landing

As there was no timber readily available in the area to build the mission house, it was necessary to obtain Kauri logs from Whitianga. These were landed on the beach which our building site now occupies, and in the absence of bullock or horse, were hauled by manpower up the banks to the mission station site, via a windy track, now known as Marsh Street.

Marsh Street was named in memory of Archdeacon A.N Brown’s only son, Alfred Marsh Brown, known as Marsh Brown.

Marsh died in 1845 aged just 14years as a result of injuries after falling from a tree, and is buried just up the road in the mission cemetery.

It was in the 1920’s that the area to the north of the mission cemetery was reclaimed for use as a railway station and goods yard, allowing for the building of NZCB’s new National Support Office, some 90+ years later.

We are now out of the ground with a floor pour (at time of article). Keep a lookout for InTouch or your email for video update of construction.

Jason McClintock Operations Manager

This 1883 map of the ‘Civil Town’ area of Tauranga does not yet show Marsh Street established, the sandy shores used by vessels can be seen here.

The landscape has vastly changed today due to reclamation; 10 Marsh Street is situated here.

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ASSOCIATION NEWS —

NATIONAL SUPPORT OFFICE – 10 MARSH STREET

FEATURE —

BE CAREFUL WHO YOU CONTRACT WITH

By Geoff Hardy of Auckland law firm Martelli McKegg The building contract only becomes relevant when a dispute arises. Until then it can stay in the bottom drawer. But when a dispute arises, it is your lifesaver. It is the difference between you recovering that final progress payment, and writing that payment off. So you don’t want to give your client any loopholes they can use to get out of paying you. And an inaccurate description of the owner(s) in the building contract, is one of those loopholes.

You should always use a written building contract, even if the contract price is less than $30,000 or it is a handyman job. That is because it is better to have the rules spelled out rather than having to spend money arguing about what the rules are if a dispute arises. And regardless of what contract you are using, there is always a space to insert the name of your client or customer. The purpose of this article is to explain to you how important it is to get that right.

Why? Because it gives their lawyers one more argument they can use against you, one more area of uncertainty they can exploit. And even if you overcome that obstacle, it costs money to do so.

As a general rule, always contract with the owner(s) of the land in question. No-one else has the right to authorise you to come onto their land and make changes to it. That is the reason why, in an insurance project such as a Christchurch earthquake repair, you should contract with the owner(s) rather than EQC or the private insurer or their project administrator. The insurer is just the owner’s financier. It doesn’t have the authority to allow you to allow you to enter the land and start demolishing or repairing the building. Only the owner(s) can do that.

The most common mistake is not to name all the owners. It is often the case that one of the owners does all the negotiating and it is simply their name that is entered into the contract.

What that means is that when you finally get that judgment or that adjudication award, only that person is bound by it - and he or she may not be the wealthy one. Why have only one person liable to you, when you could easily have had two or three? You can run an argument that the person you were dealing with was an agent for the others with the authority to bind them to the contract, and although that is invariably true, you would be amazed how difficult it is to prove when they deny it vehemently.

There is only one safe way to find out who owns the land in question, and that is to do an online search of the land title through Land Information New Zealand (“LINZ”). The title (these days known as a “unique identifier”) is the most accurate source of that information. In fact the Government guarantees its accuracy. So whenever you complete a building contract, always get a copy of the title of the land you will be building on.

The second most common mistake relates to trusts. It is a very common misconception that a trust is a separate legal entity. And so you see contracts that describe the owner as the ABC Trust. The problem is, there is no such thing (in law) as the ABC Trust. So you have contracted with a fictitious party. What the contract really should have done is name the individual trustees. The proper description is Alan Smith, Beatrice Smith and Callum Cartright as trustees of the ABC Trust. If you look on the title, that is exactly the way they will be described, except that there won’t even be any mention of the trust.

Why wouldn’t you simply trust the person who has hired you, to tell you who the owners are? Because amazingly enough, people often get it wrong. They assume they know, but the precise detail isn’t important to them. In all the construction contracts that come across my desk, I would say that no more than half of them accurately describe the owners. And this is why it is important that they do.

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FEATURE —

Geoff Hardy heads up the construction law team in the Auckland law firm Martelli McKegg. Contact Geoff on (09) 379 0700 or geoff@martellimckegg.co.nz/.

This article is not intended to be relied upon as legal advice.

A similar rule applies to partnerships. There is no such thing (in law) as the ABC Partnership. Once again the proper description is Alan Smith, Beatrice Smith and Callum Cartright as partners of the ABC Partnership. The land title will show them by their full names, and once again it won’t make any reference to the partnership, although there is no harm in doing so in the building contract.

There are two more important reasons why you should make sure you are contracting with the right parties. The first is that if it’s a commercial construction project and you get an adjudicator to confirm that the owner(s) owe you money, the adjudicator can grant you a charging order over the property (similar to a mortgage), which gives you very powerful leverage. The second reason is that if you are using a Certified Builders contract with the full wording, and it hasn’t been modified, then it contains an agreement by the owner(s) to grant you a mortgage over the property as security for payment. You can then put a caveat on their title, as an interim measure. But the important point is, neither of those remedies works if you haven’t contracted with the right parties.

The third most common mistake is to get the builder’s name wrong, often by using the trade name instead of the legal name. If you trade through a company called Boring Name 2012 Ltd but the trading name you promote to the marketplace is Choice Homes, then the name that you insert into the contract is Boring Name 2012 Ltd, not Choice Homes.

If you are in any doubt, it is the name that your company is described as on the Companies office website. And don’t be misled into putting in your own name either, if in fact you trade through a company. In one case where the builder innocently did that, an adjudicator ruled that the builder had actually intended to put his company to one side on this occasion, and become personally liable for this particular project.

“Why? Because it gives their lawyers one more argument they can use against you, one more area of uncertainty they can exploit. And even if you overcome that obstacle, it costs money to do so.”

If you are in any doubt about any of these rules, then read the fine print underneath the spaces for the parties’ names on the first page of the schedule in the building contract (you should be doing that anyway), because it tells you what to do. Then once you have the owner(s) correctly described, the second step is to get them all to sign the contract. That is just as important as describing them correctly in the first place.

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TOGETHER, WE’RE BUILDING NEW ZEALAND 22

PM1903

ASSOCIATION NEWS —

DOING BUSINESS WITH PLACEMAKERS WILL SOON GET EVEN EASIER

From May to August teams from nineteen secondary schools across the country have competed to design, build and decorate the best playhouse.

Lytton High School presented excellent plans and design with discussion of their thought processes.

Lytton High School picked up three of the four awards on offer in this year’s Challenge, topping the public vote to be named the People’s Choice and also picking up Best Video Entry.

The quality of the build was fantastic with great attention to detail. The laser-cut windows that include marine-life images were fantastic, and it is clear that care was taken to prepare and landscape the site.

The Lytton team built a ‘yellow submarine’ which has been donated to Te Whare Whai Hua Childcare Centre.

The school’s creative videos were also a stand-out, winning them the Best Video Entry. The school found team members outside the realm of carpentry who put their Photoshop talents to great use. This made the presentation of Lytton’s ‘Builders Log’ (Blog) first-class. The team put in many hours of hard work and achieved an amazing end-result.

The challenge has put the students’ building skills to the test while also highlighting the benefits of a career in the trades.

The quality of this year’s entries has been truly outstanding, said judging panel spokesperson Glenn Duncan.

“Lytton High School’s entry is a testament to the skill of these students and the hard work they have put into this challenge,” he says.

The judging panel was also impressed with the school’s consultation with the preschool, saying the team really thought about what would work best for their client. The ‘yellow submarine’ playhouse is any kid’s dream come true and will serve its purpose well.

“The work of all participating schools, and in particular the Supreme Winner, shows great promise for the future of the construction industry in New Zealand.”

Palmerston North’s Awatapu College was awarded the Dulux Best Decorated Playhouse. The team received $1,000 worth of paint and materials kindly supplied by Dulux, and each student also received an individual prize pack.

Lytton High School was awarded a $1,000 voucher for their school’s technology department, a GoPro Camera and a “team shout” by their schools BCITO Skills Broker.

Judges were impressed with the school’s documentation of the build’s challenges and successes, their skilled presentation, and acknowledgment of sponsors.

Awatapu College won Dulux Best-decorated category. Best overall build - Lytton High School’s yellow submarine playhouse.

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FEATURE —

GISBORNE SCHOOL TAKES OUT BCITO BUILD-ABILITY CHALLENGE 2016

FEATURE —

CCA RETENTION REGIME NEARLY HERE The industry’s anxious wait for the retention regime under Construction Contracts Amendment Act 2015 is nearly over, as it comes into effect on 31 March 2017.

Payers won’t need to hold retentions in a separate trust account, and as they can be intermingled with other money the retentions can still be used as working capital. However, payers must comply with their duty as trustee, have proper and auditable accounts showing how they are meeting the trust requirement, and make that information readily available to their payees. The retentions are also protected as retention money belongs to the payees, and will not be available to a receiver or other creditors when the payer becomes insolvent.

The industry is now working through the accounting and trust implications for payers, and further regulations are possible in the lead-up to 31 March.

The 2015 Amendment Act was the result of a comprehensive review of the CCA. Changes introduced on 1 December 2015 strengthened the payment regime and adjudication, and from 1 September 2016 the CCA was extended to cover the professional services of engineers, designers and quantity surveyors. The retention regime, as the final step, aims to provide better certainty of payment of retention money withheld and ensure that retention money on commercial contracts is responsibly managed.

The changes will be gradual, and are likely to include:

Despite industry-wide support there are understandable concerns about the lack of transitional provisions. Those concerns have finally been addressed in an obscure piece of legislation tabled in October 2016 called the Regulatory Systems (Commercial Matters) Amendment Bill, which clarifies that the regime applies only to new commercial contracts from 31 March 2017.

• Subcontract agreements need to be updated as current provisions for final retention release will become void.

• Payers will proactively release retentions when they fall due • Payers will take greater care to ensure that all defects are identified, notified and cleared before retentions are released.

There has been a progressive downgrading of expectations of the regime: initially it was to prevent contractors’ “use” of subcontractors’ retentions as working capital, now it will prevent the “misuse” of retention money; and “better certainty” of payment of retentions replaces the promised “security”. The current description is far more realistic and achievable.

• Payers who don’t want the trust obligation will become more receptive to bonds in lieu of retentions.

As mentioned the regime applies only to commercial contracts i.e. where the payer is not a residential occupier, but will of course apply to retentions withheld from subcontractors.

Looking ahead, builders who hold retentions from subcontractors should take professional advice on meeting their own obligations as trustee. They should also consider how their own retentions withheld under contracts with homeowners should be secured, as they won’t be protected under the CCA.

The regime is simple. Retention money is defined as “an amount withheld by a [payer] from an amount payable to [a payee] as security for the performance of [the payee’s] obligations under the contract.” All retention money on commercial construction contracts will automatically be held on trust, and will remain on trust until paid, given up, or ceases to be payable (e.g. when retentions are applied to remedying defects).

What will the changes achieve in the long term? I believe we will see a marked improvement in the management of retentions, and less reliance on retentions to produce defect-free work.

There are also new prohibited contract provisions designed to delay payment of retention money which provide that the release of retention money cannot be conditional on anything other than the payee’s performance of its contract obligations.

Contractors must release their subcontractors’ retentions when they have cleared their defects regardless of whether they have paid under the head contract, and will be liable for interest if the release is delayed.

Peter Degerholm Calderglen Associates Limited PO Box 835, Wanaka 9343 Email peter@calderglen.co.nz or geoff@martellimckegg.co.nz

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1. What is the optimal distance for hanging building wrap past the bottom plate?

3. Under NZS3604:2011 what is the Kn hold down requirement for framed openings?

4. Under NZS3604:2011 what is the Kn rating for the lintel to stud connection?

5. A head flashing should have a slope of how much?

6. Sill to floor level; what is the maximum window width covered under E2/AS1?

7. Head flashing stop ends, should these penetrate the cladding?

8. E2/AS1 – Over what length of window is a support bar required?

9. The window flange must have how much cladding cover on the jamb? And cover of the sill flange?

10. How much can a bottom plate be compromised [hole, cut out or split] before a concrete nail is required either side of the hole

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Answers:

1 35mm – NZS3604:2011 2 6mm – NZS3604:2011 3 7.0 Kn – Note: Pe-cut frames are likely to be an engineered system of either Pyda or MiTek and so may call up a high Kn hold down 4 7.5Kn – Pryda or MiTek may call up a higher rating 5 15 Degrees 6 E2/AS1 - 9.1.10.1 Scope. For sills to floor level, has maximum width of 6 m and maximum overall frame area is 16 m2 7 No, stop ends should terminate into the back of the cladding 8 600mm 9 10mm minimum the jamb cladding and 8mm minimum cover on the sill cladding 10 If the bottom plate has been cut or has a hole of greater than 50% of the plate width then a concrete pin is required each side of the hole.

2. What is the optimal distance when hanging the bottom plate over the floor slab?

ASSOCIATION NEWS —

QUIZ THE GREY MATTER

BEHIND THE SCENES OF OUR LATEST TVC

FEATURE —

BEHIND THE SCENES OF OUR LATEST TVC Our latest TVC for NZCB follows up the brand reintroduction with a piece of storytelling. It centres around the idea that NZCB builders treat every home as well as their own.

Builder with string

Children with string cups

Builder with tape measure

Mum measuring her sons height

Builder blowing sawdust

Child blowing out candles

To demonstrate the strong connections between builders and their customers, we’ve used match shots to show some unexpected parallels between building a home and living in it. The voiceover reinforces the pride NZCB builders feel to be part of an organisation that prioritises quality, craftsmanship and trustworthiness.

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Jack proudly review ing

Desiree doing hair and makeup

his performance

Setting up for the cake scene

In the editing studio

Lighting the cake for

FEATURE —

Checking the photo graph as photograph y was also done behind the sce nes

Desiree doing hair and makeup

the 10th attempt to ge t it perfect

Watching the cup scene on screen

It’s a wrap!

Photographing the string scene

Builder Luke Monaha n sets up for the string scene using an air can to ge t a dust cloud effect

on the Filming the family walk around to the front

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house

ASSOCIATION NEWS —

HO HO HO Yes, it’s almost that time of the year. Everyone is flat out run off their feet busy.

The frog is the task which you don’t want to do or the hardest task on the list or the task you will procrastinate on. By eating the frog first means that every other task following will in fact be and feel a whole lot easier. By not “Eating the Frog” first and to procrastinate on it, can be quite draining as you are constantly thinking about it all day while you are doing all your other tasks. So, let’s “Eat the Frog” first and I guarantee, you will feel better after it!

As I am coming to an end of TBS (Tool Box Seminar) Series 3, Time Is Money, I can be honest saying I was a little nervous delivering the content of this topic. However, as I travelled around the North Island delivering this TBS, I quickly realised we were ‘bang on the money’ with content. The feedback myself and my South Island colleague Nick was receiving was very positive in the fact that the topic wasn’t too heavy for this time of year as everyone had a lot on and the duration just right. The key messages within the seminar were exactly what we needed right now in this busy climate as it was for most a reminder of what good practice looked like for time management. For others, this level of detail was something new in which they could add to their planning management processes and strategies. I had a couple of members comment that this TBS was bang on because it wasn’t negative in the sense where we were “telling the builders this is what you have to do” and they referred to this approach as ‘scare mongering’ and another member commented “it was light and refreshing and a reminder of plan and prepare to ensure things are done right first time”.

Finally, to close I wish everyone a safe and merry festive season through the Christmas and New Year and look forward to seeing everyone in the new year.

Ka kite ahau Shane

Early November I attended a Time Management seminar, which was similar to the TBS, Time is Money, myself and Nick delivered. From that seminar, I came away with a couple of good principles and I would like to share one of those with you called “Eating the Frog”. So “Eating the Frog” principle means to write down your list of tasks you intend to complete in your day and out of that list Identify the “Frog”.

Shane Ririnui Business Development Manager – North Island

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ASSOCIATION NEWS —

MERRY CHRISTMAS TO ALL The nature of our industry is so often the victim of the boom or bust cycle. In my regular travels and due to the current environment I’m often not surprised to hear that builders are as busy as they have ever been, with work booked ahead for 8 – 10 months if not longer. The building boom isn’t just limited to the major centres either, smaller regions like Marlborough and South Canterbury who have had it tough in recent years are enjoying the building boom helped along by a positive economy.

As the year draws to a close, I reflect on the activities I’ve been involved with and the people I’ve met. I’m happy to say it’s been an enjoyable year with many successful outcomes. A personal highlight for me was the 2016 Carpentry Apprentice Challenge, the calibre of each apprentice was a standout.

The new brand looks great and I receive plenty of positive feedback from industry identities everyday about how our Association is dynamic and progressive, all of which when combined with the HALO 10-Year Guarantee tells me the future is bright for NZCB as we are Navigating the Course Ahead.

To all NZCB members, family and friends, I wish you a very Merry Christmas and happy New Year.

At this time of the year the pressure of Christmas can add to a builder’s stress levels, keeping promises made to clients and juggling family commitments can be tricky. Those building professionals who took the time to attended the last round of ToolBox Seminars “Time is Money” are hopefully finding this busy time less stressful. The techniques and strategies shared as part of the ToolBox Seminars can help to improve time management, resulting in increased productivity and better focus. If you’ve never attended a Seminar or haven’t been to one for a while, you should come along as you might just learn something useful…

Nick Matthews

In Dunedin the Otago regional committee held their annual golf tournament on the 14th of October. The event was attended by over 70 builders and industry representatives, with proceeds from the day being donated to SAR Dogs Otago Incorporated, a deserving charity that trains and deploys search & rescue dogs in various environments.

Regional President Sasha Gray said the day was a great success with the winners being GJ Gardiner Dunedin, followed closely by Harcourts Real Estate, congratulations and thanks to all who supported this event.

Nick Matthews Business Development Manager – South Island

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ITAB —

ITAB IS PROUD TO ANNOUNCE TOM WALSH AS ITS BRAND AMBASSADOR Tom, a recent graduate of the ITAB Apprenticeship Programme gained his carpentry qualification in August 2016. Having returned home from a successful Rio Olympic Games I meet with Tom to discuss his endorsement of the ITAB Programme. As luck would have it, Tom was keen to be involved with ITAB and in his humble manner said he was “happy to do what he could”.

is great and there’s no pressure compared to a building site when you make a mistake or are trying something for the first time. It’s for these reasons that Tom believes ITAB works so well for many carpentry apprentices around the country.

Tom hails from South Canterbury and grew up on the family farm where he discovered he enjoyed working with his hands along with the outdoor and practical lifestyle that farming demands. Tom says he always enjoyed sport and competing, however school work didn’t come naturally and he would later learn he has dyslexia.

ITAB is certainly thrilled to have Tom on board, his high profile and the positive media attention he attracts will help to raise the profile of ITAB as an alternative Apprenticeship Programme for the quality training of Carpentry Apprentices.

“That’s one of the reasons why I decided to go to Polytechnic and choose ITAB as my preferred apprenticeship provider” says Tom. The learning support provided to ITAB apprentices

Nick Matthews ITAB Development Manager

Tom said he wanted to give something back to ITAB, the programme that allowed him to learn and gain the skills needed to become qualified and competent as a carpenter, while still remaining flexible enough to allow him to compete with the Shot Put at the highest sporting levels.

Thanks Tom, we are looking forward to working with you!

Tom Walsh and Grant Florence signing ITAB Brand Ambassador Agreement.

Grand Florence, Tom Walsh and Nick Matthews.

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ITAB —

ITAB APPRENTICES TO BENEFIT‌ ITAB Apprentices are set to receive milestone benefits as part of a sponsorship proposal secured with ITM. Supporting our industry at a grassroots level is about looking after the next generation of carpenters coming thorough their apprenticeships.

ITAB in partnership with ITM is pleased to announce the ITM Building Professionals Program (BPP).

will include free tools, trade quality branded clothing, tool accessories, discount vouchers and professional support throughout the duration of an ITAB apprenticeship.

ITM, using their extensive network of suppliers, have secured exclusive deals with Makita, Plaslode and EstWing to name just a few as well as branded Tee shirts, shorts, socks, hats and polar fleeces for the worksite. Qualifying ITAB apprentices will receive confirmation directly from ITAB National Support Office with details of how to redeem their milestone benefits from their local ITM store.

Becoming an apprentice is a big undertaking, ITM recognises this and wants to reward eligible ITAB apprentices who have satisfactorily completed the theory and practical components of their apprenticeship as well as having regular attendance at night classes or block courses. The ITM Building Professionals Program is exclusive to ITAB and will give our apprentices a helping hand, as well as recognising their investment of time and learning.

ITAB apprentices already benefit from quality carpentry training nationwide thanks to the partnership with Industry Training Providers and will now be well equipped with tools and clothing needed to do the business on site, thanks to ITM. * Some conditions apply.

Apprentices who enrol into the ITAB programme from 2017 will become recipients of the BPP as milestones are achieved in each year of their apprenticeship*. The milestone benefits

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ITAB —

ITAB APPRENTICE GAINS SECOND PLACE IN REGISTERED MASTER BUILDERS APPRENTICE OF THE YEAR 2016 The Registered Master Builders Apprentice of the Year 2016 competition was a crazy experience; one I’ll never forget. From when I first started my pre-trade course at NMIT and decided I’d become a builder, all I’ve wanted to do was prove myself as a quality tradesman and compare my skills to the best throughout the region and country.

It was incredibly interesting to see how they all worked under pressure with such big prizes and so much recognition up for grabs.

I tried not to let it get to me through the interview and practical challenge but I felt sick and started shaking at the awards dinner as it all finally got to me. It was a great result for me to come second. It’s something I’m incredibly proud of and even if I didn’t get such a satisfying result I still enjoyed the whole experience.

The regional section of this competition was all written and verbal. I had to do a written portfolio on a job and myself, then take three judges on a site visit and show them around and explain my role throughout the build.

I got to meet a great group of lads as well as industry leaders from around the country, and yeah the prizes are definitely a bonus and I’m really looking forward to the outward bound course.

With the nationals came a daunting 45-minute interview that was a lot more relaxed than anticipated. Then the thing I was really nervous and excited for, a chance to test my practical skills against the best apprentices from around the country.

Wade Puklowski.

Wade Puklowski.

L to R Ben Coman (employer), Wade Puklowski, Lisa Puklowski (mother), Hayden Gundry (friend).

Completed play houses.

Wade Puklowski ITAB Apprentice

Wade Puklowski with finalists.

Ryan Tesselaar (3rd), Callum Bryson (winner), Wade Puklowski (2nd).

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GOOD JOB GUYS!

NZCB Apprentice Challenge – 2017 Are you a current apprentice employed by a NZCB member or an ITAB Apprentice? Maybe you’re an employer who thinks you have got the next potential winner of the NZCB Apprentice Challenge and want the bragging rights…? Either way, it’s time to stand up and be counted!

Completed Apprentices ARA INSTITUTE OF CANTERBURY Etisone Aulaumea – Kelly Builders Limited Liam Barry – Sugrue Construction Limited

2017

Nominations for the 2017 NZCB Apprentice Challenge will be open during February/March 2017 and can be submitted either directly to ITAB National Support Office for ITO based apprentices or via your ITAB Carpentry Tutor for apprentices enrolled with ITAB. Competitors wishing to take part can be at any stage of their apprenticeship, regardless of age or experience, however must be enrolled in a recognised apprenticeship and must be up to date with any associated apprenticeship fees or training related expenses.

Michael Batstone – J.R. Construction Ltd Stephen Borsboom – McKenzie Builders Limited Alex Bowers – Bowers Builders (2006) Limited Mark Burton – C & R Builders Jason Cooke – Metzger Builders Limited Jaron Frost – Solutions 2 Access Ltd Oliver Gilkison – Right Angle Construction

2017 Apprentice Challenge will take on a different look and approach from previous competitions. The 2017 challenge will see regional events hosted in local ITM branches nationwide which will result in a number of subtle improvements to the overall planning and outcomes of the challenge. The changes will mean both North and South Island regional events will be held on the same date, with improvements to consistency of material supply, similar physical location with ultimately less of a drain on Polytechnics resources.

Brent Laban – Structure Wise Limited Kharn Mangos – Scott Bergh Builders Andrew McPhail – Eric Roberts Limited Richard Mugford – Peter Somerville Building Limited George O’Brien– Bayshore Builders Limited James Thomson – Miles Construction Limited

ITAB Carpentry Tutors and NZCB Regional committee members will still oversee the judging of each event and will co-ordinate with identified ITM branches in each region who will provide the regional location, construction materials and prizes on the day. This also means those regions who have historically missed out on hosting a challenge such as the Waikato, Taranaki, Hawkes Bay (2016) and Central Otago will now be included, resulting in better representation at the national final.

Kevin Uluave – McIntosh Commercial Construction EASTERN INSTITUTE OF TECHNOLOGY (EIT) Kane Drew – Mike Webster Building Benn Lantsbury – Atkin Construction Limited Lance Welch – Madden Construction SOUTHERN INSTITUTE OF TECHNOLOGY (SIT)

Thanks to the generosity of ITAB and ITM apprentices who give up their Saturday by putting themselves under the spotlight of competition will also benefit from a consistent prize package across each region. NZCB looks forward to the 2017 NZCB Apprentice Challenge and wish all competitors the best of luck.

Keegan Watson – G J Gardener Homes (Otago) UNIVERSAL COLLEGE OF LEARNING (UCOL) Jason Conibear – P J Jamieson - Builder

Nick Matthews ITAB Development Manager

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ITAB —

STAND UP & BE COUNTED!

AST TRUST —

REFLECTING ON AND PLANNING FOR SUCCESS We’re now within a few weeks of the end of 2016, and while it’s tempting to dwell on how busy we are, it’s also worth considering what’s been achieved this year. The trustees, NZCB staff, and ITAB providers across the country have continued to work hard to support the apprentices, both directly, and through the employers.

A very successful NZ Carpentry Apprentice Challenge was run, with regional events and the national final providing the opportunity for apprentices to test themselves against each other. The AST sponsored this event again, as well as the annual Excellence Awards and provided ongoing support to apprentices via the Hardship Grants.

A common theme at two recent industry forums was the idea of the tripartite nature of apprenticeships - employer, apprentice and provider - and in particular the key role that mentors play in supporting apprentices. In 2015 the Tertiary Education Commission (TEC), the tertiary government funding agency, launched the Code of Good Practice for New Zealand Apprenticeships, and mentoring gets a specific mention in this document under the ‘employer’ section. Whilst not necessarily the exclusive domain of employers, it’s clear that mentoring an apprentice provides positive results for all involved.

Brian Dillon Chairman AST Trust

It’s pleasing to observe that the practices of the ITAB providers are a good match with those required by the Code of Good Practice, and that bodes well for the future of apprenticeships, in particular those employers and apprentices who choose to train under the ITAB partnership.

I trust you all get a break over the coming weeks and come back ready for another productive year in 2017.

Regards, Brian Dillon Chairman, AST Trust

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FEATURE —

BUSINESS OBJECTIVES 8. How will you know if you achieve your objectives – Financial measures are fantastic but think more broadly as there may be specific non-financial measures that better represent the attainment of an objective. Some examples include labour efficiency, people growth, process throughput and even that new shiny boat. As important it is to know what your end targets are, it is equally as important to set specific measures and targets to measure traction along the journey so you know you are heading in the right direction.

The start of the year is a great time to sit back and reflect on personal and professional objectives. The same applies for your businesses objectives with the need to take the time to reflect on the year ahead and set objectives while trying to anticipate some of the challenges you may face along the journey.

Setting these objectives can be a struggle, especially when you have misplaced that crystal ball, but the following provides some considerations to help:

9. Capture the objectives in a succinct, clear and logical strategic/business plan document – Document your objectives, what you need to do to achieve them, how you know when they are achieved, the measures to track progress and what you will do to celebrate/learn when achieved in a business/strategic plan.

1. Think Big – Lift yourself out of the day to day trenches and think broader and longer term about your business and personal goals.

2. Change is the new normal – Push yourself to dig deep when thinking about your objectives even if this means undertaking fundamental change. Consider any change carefully but do not let the fear of change hold you back from unlocking your businesses potential.

10. Review, refresh and recalibrate – Business does not operate in fixed 12 months buckets of calendar or financial years.

Business continually changes and evolves – So should your objectives and plans around how you are going to achieve them. Book time out in your calendar every 3 or 6 months to take step back from the day to day operations to freshen your thinking and recalibrate (where needed) those objectives and associated plans.

3. Consider the external factors impacting on your business – Understand the external factors that influence your business, determine how they influence your business and try to gauge what these factors are doing at present. Is it the foreign currency, commodity price, that pesky competitor low balling or a big shift in customer expectations/product requirements?

The PwC Private Business team would love to hear what your objectives and plans are for the year and help you to convert these into a valuable business document - Come Think With Us for a complimentary brainstorming session to talk through your commercial and personal goals, the plans you’ve got in place to achieve them and the challenges you’ll need to navigate along the way. Please get in touch soon to see how we can deliver real value.

4. Be honest – Do not assume that potential shift in your market or old machine breaking down will not happen to your business. Be honest with the things that may not go to plan and how you need to manage these if they occur (Develop options A, B and C).

5. Keep it simple – Do not overcomplicate the objective setting process – Short, sharp and a bit of gut instinct. Do not spend months trying to gaze into a crystal ball when your business shifts in a direction you did not want it to take.

6. How are you going to go about achieving your objectives – Develop specific plans on how you are going to go about achieving your objectives.

Steve Brocklebank For general business,accounting or tax issues you can contact Steve Brocklebank of PricewaterhouseCoopers.

You must identify yourself as a NZCB member and any information you disclose will be treated with confidence. Call Steve Ph: 03 470 3615

7. It’s not just about you – Engage with people you trust and respect to get a broad and fresh view. It maybe your management team, trusted advisor or a contact with good commercial experience. If you have family members in your business, and or working through a succession plan, then you may wish to engage them in helping to set the objectives.

37

tongue&groove

tongue&groove

EMPLOYEE CONDUCT OUT OF WORK

However, where an employer becomes aware of and concerned about an employee’s conduct outside of work, it is also important to take into account an employee’s general right to do what he or she wishes to do in the employee’s personal life, and the right to privacy without unnecessary scrutiny or interference by the employer. It is important not to overreact.

We regularly advise employers about how to handle a situation where an employee’s conduct outside of work impacts or could impact on the viability of the employment relationship. Case law has made it clear that an employer can terminate an employee’s employment for conduct outside of work in some circumstances. However, there must be a clear relationship between the conduct and the employment. The focus is not so much where the conduct occurred, but rather whether:

This type of situation requires a finely balanced judgement and any action taken by the employer must be in good faith and follow the usual requirements as to fairness and reasonableness. If any employer is concerned about an employee’s conduct outside of work, we suggest they seek advice at the earliest opportunity.

• It impacted or had the potential to impact on the employer’s business (for example damage to reputation because the conduct is in the media, or the likely loss of a key customer if the employee remains in employment); or • It was incompatible with the proper discharge of the employees’ duties (for example, a dishonesty conviction when the employee has financial responsibilities as part of his or her duties); or

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).

• It had an impact on the employer’s obligations to other employees (for example, a criminal conviction for drug usage which puts the health and safety of others at risk); or • For any other reason, the conduct undermined the trust and confidence necessary between employer and employee.

10 YEAR PRESSO Neil Dickinson’s 10 years membership of NZCB was recently acknowledged in Auckland. Presenting Neil with his 10 year badge NZCB Board Member Dave Whitehead thanked Neil for his continued membership and acknowledged the fact that the Association was well overdue in making this presentation to Neil.

Well done and many thanks Neil.

Dave Whitehead (NZCB Board), Neil Dickinson and Stavros Evangelidakis (Auckland region President).

39

FEATURE —

EMPLOYMENT LAW

What is a Gross Margin?

Why does 70-80% of an increase in a Gross Margin increase flow into Profit?

Gross margin is a company’s total sales revenue minus its cost of goods sold (COGS), divided by total sales revenue, expressed as a percentage.

Gross Margin (%) =

Because the costs that your business pays in arriving at Gross Margin are the direct costs that you incur to produce the Gross Margin! This only leaves minor overhead /operating costs (i.e. these represent the 20-30% that does not flow to profit), resulting in the 70% - 80% profit increase.

Revenue - Cost of Goods Sold Revenue

Companies use gross margin to measure how their production costs relate to their revenues. For example, if a company’s gross margin is falling, it may look for processes that allow it to cut labour costs or for suppliers who offer lower costs on materials.

How can I increase my Gross Margin?

1. Focus on client value, rather than cost to produce.

2. U nderstand at a deep level the benefits that your prospects and customers are looking for; both now, and values that you could deliver that they are not currently aware of.

Source: Investopedia.com

3. Probably the most critical key is to ensure that you measure and manage your Gross Margin (at a minimum on a monthly basis), so that you can manage and measure the improvement in Gross Margin as you increase it.

Increase your Profit and Cashflow by increasing your Gross Margin Here is an example how by increasing your Gross Margin, you will at the same time increase your Profit and Cashflow.

Learn more about increasing your Gross Margin, Cashflow and Revenue!

- Say your current annual business revenue is $5 million - At a 30% Gross Margin, in monetary terms, your Gross Margin is $1.5 million i.e. $5m x 30% = $1.5m

Talk to Murray Fulton, Director at Advantage Business Ltd.; he has 30+ years of experience making builders’ businesses like yours an absolute success.

- If your operating costs are $1m per annum, then your Profit per Annum is $0.5m before tax i.e. Gross Margin $1.5m less operating costs of $1m = Profit before tax of $0.5m What would happen if your business increased its Gross Margin to 40%?

- Using the example above, a 40% Gross Margin on $5 million annual revenue is $2 million. This is a $0.5 million increase in Gross Margin.

- If you are like most businesses, between 70 and 80% of this $0.5 million Gross Margin would flow to the bottom line; that is, increase profit.

Murray has a wide knowledge of small and large enterprises in many different industries, gained from 30+ years of business experience.

- This would mean your $0.5million profit before tax would increase by another $0.4 million (assuming that 80% of the $0.5 million Gross Margin would flow into Profit).

His particular areas of focus are cashflow, profitability, marketing, sales, people performance improvement, financial reporting and forecasting to improve gross margin. He holds strong experience in the use of IT for business improvement.

- Your Profit before Tax has therefore increased from $0.5 million to $0.9 million – an 80% increase.

Murray believes in “plain English” explanations, and offers practical, real-life grounded, coaching and mentoring.

- If your business then collected 95% of this profit over time, then your business has an additional $380,000 in cash to utilise over a year – i.e. $31,000 per month.

Email: mfulton@advantagebusiness.co.nz Mobile: 021-900-001

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FEATURE —

GROSS MARGIN OPTIMISATION

ASSOCIATION NEWS —

TIS THE SEASON TO BE JOLLY! Gift ideas for your Employees!

RADIO EARMUFFS $139

DIRTYMAN TWIN SHAVING PACK $20

• Bop to some beats while you work!

• Reflective headband illuminates under light for increased visibility and safety • AUX input can connect to MP3 players • Radio volume does not exceed 82dB • Features patented Air Flow Control™ Technology, delivering higher attenuation across all noise frequencies, especially in low frequencies • Snap-in ear cushions make replacement quick and easy • Includes 2AA batteries and 3.5mm connection cable

• Twin pack containing moisturiser and shaving gel • For every pack sold $5.00 will be donated to the Apprenticeship Scholarship Trust!

DIRTYMAN SPF 30 SUNBLOCK MOISTURISER $9.30

Check out the Goodies section in the NZCB online shop for more Christmas gift ideas. www.certified.co.nz/members/ online-shop/goodies/

• SPF 30 • Restores dry skin and replenishes moisture lost during the day • 75ml

Quirky Gifts BEARD BRO TOOL $29.95

GRILL LIGHT SPATULA $39.95

Keep your beard game strong with the Beard Bro Tool – the ultimate grooming tool. The handy accessory offers a multitude of shaping choices and styling options – you can even shape your neckline with ease by shaving over the tapered edge.

The ultimate gift for the barbequing man.

Grilllight is an ingenious grilling tool that incorporates high power LED lighting into a restaurant grade stainless steel frame for a stylish look and quality feel. If you have ever barbequed in the evening or just on a dark and smoky grill you’ll know the frustration. You might have struggled with holding a grilling utensil, a flashlight, and a serving plate. Either way, you’ve probably thought, “there’s got to be a better way to do this.” Well, finally there is.

Simply adjust the curve angle and the different levelling markers to get the shape you want, and take guesswork out of the process to get the perfect lines every time.

Find it on notsocks.co.nz

Find it on notsocks.co.nz

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FEATURE —

OVERLAPPING PCBU DUTIES – WHAT IS EXPECTED? • Putting in place those controls;

PCBUs have a primary duty to ensure, as far as reasonably practicable, that the health and safety of workers, and others at the worksite, is not put at risk by its work. But what happens on a building site where multiple contractors and subcontractors are working at the same time. Who does this duty fall to?

Simply put, both risk and responsibility lies with each PCBU, and overlapping duties arise.

• Clearly defining roles, responsibilities and actions, and communicating about these; and • Continuing to communicate, co-operate, and co-ordinate with other PCBUs throughout the work, and carrying out reasonable and proportionate monitoring, to make sure good health and safety is maintained.

Following these steps and keeping accurate records will assist PCBUs to meet their duties and to demonstrate the steps taken to consult, co-operate and co-ordinate with other PCBUs. The extent of a PCBU’s duties is limited by their ability to influence and control the matter and what is reasonably practicable in the circumstances. It is expected that PCBUs leading contracting chains set the standard in terms of leadership and promotion of good health and safety practices throughout the chain. The intent of a collaborative approach is that larger, better resourced PCBUs will assist smaller PCBUs to build capacity and better discharge their duties, making worksite health and safety management simpler, and creating a safer worksite overall.

Each PCBU has a duty to ensure the safety, so far as is reasonably practicable, of not only their workers but of anyone else on site who may be affected by any potential risks that each PCBU creates by its work. This does not mean that each PCBU needs to duplicate hazard identification and risk management steps - a collaborative approach involving consultation, co-operation and co-ordination with each other is required, to ensure the duties collectively are being met.

PCBUs should consider not only their immediate work tasks but also how they will be affected by another PCBU carrying out works on the same site, and in turn, what effect their work will have on the other PCBUs.

WorkSafe NZ’s website has useful, reader friendly information on how to work out the extent of each PCBU’s duty, and we recommend seeking professional advice about what this means for your business.

Using first aid as an example, provided PCBUs consult and co-operate regarding first aid requirements, by successful collaboration, agreement may be reached about adequate availability of first aid kits and first aiders being provided by a single PCBU on site rather than duplicated and required for each PCBU. All PCBUs need to meet their duties by: • Planning ahead and identifying how the work they do could affect other PCBUs, workers and other people; • Identifying health and safety hazards and associated risks that need managing;

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.

• Consulting other PCBUs to agree how to control each risk; • Consulting other PCBUs to decide which PCBUs are best placed to control each risk;

43

TRENDING ARTICLES IN NZCB NEWS

ASSOCIATION NEWS —

Taxman surveys tradies’ thriving cash economy

‘‘We think that is in part related to the fact that people aren’t in the position to move on and buy a new home but there is value in their homes, particularly Auckland where they can borrow against that improved equity position to renovate their homes.’’

Tradespeople are doing cash jobs worth up to $20,000 or more under the table, as cash jobs continue to allow massive sums of tradie money to go untaxed, the Inland Revenue Department has revealed.

Because qualified builders were being lured away to bigger jobs, Gray said unlicensed tradespeople were coming forward to meet the demand, dropping brochures or advertising in local newspapers.

In an Inland Revenue survey of about 500 tradespeople, a quarter said under-the-table jobs were common in the building and construction industry.

‘‘For us, there’s a distinct connection between these people who are prepared to do cash jobs and the job that ends up by really compromising the owners.

Of those surveyed, 79 per cent also believed it was a crime.

Another survey found 11 per cent of tradies surveyed said they were aware of cash jobs worth more than $20,000 going untaxed.

‘‘They’re willing to break the tax law and they’re equally willing to break the building law.’’ However, Grant Florence of the Certified Builders Association said he had no evidence that the alterations industry was being filled by unlicensed ‘‘cashies’’.

The surveys are part of an Inland Revenue campaign targeting Christchurch this week, after previous campaigns in Auckland and Queenstown earlier this year.

‘‘A lot of our members who have done alterations particularly in the large markets like Auckland are continuing to do alterations ... They haven’t drifted off to do new homes.’’

The department said there had been a big shift in people’s attitudes towards tax avoidance compared with four years ago, when it first began its research.

Inland Revenue group manager of marketing Andrew Stott said that whenever there were lot of new entrants to an industry, noncompliance issues often followed.

A quick survey by TVNZ found that three out of six tradesman contacted for a quote provided a cash price, without being asked.

‘‘Part of that is a whole lot of new people coming in and might not have run a business before ... so our job there is to help them understand what is they have to do

John Gray, from the Homeowners and Buyers Association of New Zealand, said he was dealing with at least a dozen complaints a month of dodgy alterations, often by people willing to do cash jobs.

…We’ve got to make sure that we’re dealing with those who aren’t, because it’s not fair to those who don’t want to do cash jobs if they’re being undercut by others.’’

There were various estimates as to how much money was being lost in the ‘‘hidden economy’’. ‘‘We can’t know ... I’ve heard numbers bandied around between $6 billion and $9b. We don’t spend our time trying to verify those because they’re all guesswork but really, that’s a lot of money.’

And the penalties could be significant. ‘‘It is a crime so there is jail time potential.’’..”

ID 659332143 Manawatu Standard, Palmerston North Manawatu 20 Sep 2016

FROM THE MEDIA

CATHERINE HARRIS

44

TRENDING ARTICLES IN NZCB NEWS

Value in written contract New Zealand homeowners are too laid-back when it comes to written contracts for building work and assume being licensed means builders have a higher standard of training, skills and experience than is required under the Licensed Building Practitioners scheme.

The survey also found that 90 per cent of homeowners thought having a formal building trade qualification was a requirement for a builder to be a Licensed Building Practitioner (LBP).

These are some of the results of a survey of 1000 Kiwis carried out by New Zealand Certified Builders (NZCB).

“Trade qualification isn’t a requirement under the LBP scheme, and in terms of professional development, while the LBP Skills Maintenance Scheme has been strengthened, in our view it doesn’t go far enough,” says Florence. He says all builders are required to do is read LBP News, identify two examples of onthe- job learning over the two-year licensing cycle and undertake some elective activities to earn points, to maintain their licence.

More than half (51 per cent) of homeowners who had used a builder in the past 10 years didn’t have a written contract for work done by their last builder. Of the work done without a written contract, 22 per cent was for work worth more than $30,000. NZCB’s chief executive, Grant Florence, says the survey highlighted the importance of consumer protection measures, such as the change last year to make written contracts mandatory for building work over $30,000.

“Like the homeowners who responded to our survey, we’ve always thought the LBP scheme should require trade qualification, as well as amore stringent skills training pathway.

He cautioned awareness still needs to be raised in the industry and among consumers about the mandatory requirement for contracts and the importance of written contracts. “The survey found that 46 per cent of homeowners think it’s the builder’s responsibility if something goes wrong with a build or renovation. The reality is, if there’s no written contract in place, thismakes it difficult to resolve any issues. Having a contract is important for spelling out duties and obligations in relation to building projects.”

This would further lift the standards of training and skills across the industry, which is in the best interests of consumers,” says Florence..”

ID 665333535 Weekend Herald, Auckland 01 Oct 2016

DIANA CLEMENT

Survey highlights need for building industry to educate and support consumers

place, this makes it difficult to resolve any issues,” Mr Florence says. “Having a contract is important for spelling out duties and obligations in relation to building projects. That’s why we provide template contracts for our member builders to use, to ensure they adhere to the highest professional standards.”

The NZ Certified Builders Association (NZCB) has released the results of an independent survey it commissioned of 1000 consumers across New Zealand, looking at perceptions and trends in relation to the building industry.

Mr Florence says they know there’s room for improvement in terms of consumer understanding of what homeowners should be asking of their builder.

CONSUMER UNDERSTANDING

“The results of a separate survey of builders that we undertook earlier this year found that NZCB members were very rarely asked by their clients for a building contract, warranty/guarantee or maintenance information.

The survey found that 51% of homeowners who had used a builder in the last 10 years didn’t have a written contract for work done by their last builder. Of the work done without a written contract,

This is concerning because while NZCB members have access to template contracts and guarantees and can offer these to their clients, others in the industry, who do not have the support of a major building trade association, may not,” he notes.

22% was for work over $30,000, 18% was for work between $10,000 and $30,000, and 48% was for work under $10,000.

NZCB chief executive Grant Florence says the results highlight that there’s still work to do to raise awareness within the industry and among consumersaboutthe new mandatory requirement for contracts for work over $30,000, and the importance more broadly of written contracts for building work under this threshold.

“Our separate survey of builders also found that NZCB members were significantly more likely than respondents who weren’t an NZCB member to understand what was required of them under the recent Building Act changes, in terms of providing consumers with a prescribed checklist, disclosure statement, contract and warranty/guarantee information,” Mr Florence says.

“The survey found that 46% of homeowners think it’s the builder’s responsibility if something goes wrong with a build or renovation. The reality is that if there’s no written contract in

ID 680578632 New Zealand Construction News, New Zealand 01 Nov 2016

45

ASSOCIATION NEWS —

The organisation provides template contracts for its members to use, and has introduced amandatory building guarantee, which applies to every new home build or home building alteration over $30,000 that is undertaken by an NZCB member.

FEATURE —

Easily manage your LBP points from anywhere, virtually.

If you find managing and recording your LBP points frustrating and time consuming, here’s some very good news!

Download the new ITM App for builders today: • simply & easily manage & record your LBP points • stay on top of industry news • get the latest technical product info • plus enjoy exclusive monthly fishing content from Matt Watson & rugby content from Wynne Gray.

Get your FREE VR headset and enter NZ’s First Virtual Fishing Competition!

See itm.co.nz/app for details.

46

FEATURE —

RETIRE OR UPGRADE?

By Verney Ryan, Beacon Pathway Looking at the relative costs of upgrade vs retirement, we developed an upgrade plan for each house and costed it out.

We found the cost of upgrades averaged $23,251, with the most expensive upgrade plan costed at $39,155. Although the suggested upgrades might not reach the home performance level of a new home, it would result in an upgraded house which was rentable and made significant changes to running costs, warmth, health and comfort.

Recent research looked at whether there was a clear case for retiring older homes in the Tamaki Regeneration area.

The idea is often thrown about that our older houses are in such poor condition that they should be demolished rather than renovated.

With Building Levy-funding, we tested this assertion on privately owned housing stock in Tamaki. The area is undergoing regeneration but most of the change so far has been in removing and rebuilding Housing New Zealand stock. Most of the remaining houses in the area are privately owned and often in poor condition, particularly with deferred maintenance.

No houses had a compelling case for retirement. Even the house with structural issues in the ring foundation plus significant cladding and window issues, had a fully costed upgrade plan of just over $36,000. Given the house was providing relatively inexpensive accommodation for its owners, retirement (and the capital expenditure and debt that this might incur) was not a favourable option.

Our aim was to develop a framework to help people decide whether upgrade or retirement is a better option.

Developers provided another viewpoint: they noted aggregating properties, while appearing to make sense, could be a long and difficult process which did not always stack up economically.

To do this, we made a technical assessment of each house’s condition and potential for upgrade (thank you, Certified Builder Dave Brown!). We also interviewed the householders, analysed the economic cost benefit, and talked to local developers. Fourteen houses were assessed– all but one were state or mass housing built in the 1950s and 60s.

All in all, the answer seems to be “It’s complex!” And I should note that this is a particular set of houses of similar age and condition in a particularly strong community; answers from houses and neighbourhoods in different parts of New Zealand may vary.

We found that decisions on whether it’s worth upgrading an existing home, or whether it should be retired, are complex and can’t be based on straight economic cost benefits.

It’s not just about costs or the value of the house; social and emotional components of ‘home’, neighbourhood and community have a big impact. Every household had a unique set of living circumstances, a unique family set up, a unique history, unique financial positions, and a unique emotional attachment to their dwelling and their community.

It proved impossible to make a simple decision-making framework that captured all these factors. Instead, we developed an enquiry framework with a series of questions to guide a decision.

Damaged ring foundation: Even repairing a damaged ring foundation did not make retirement compelling for this house.

47

ASSOCIATION NEWS —

IF ALL YOUR COMPUTER FILES AND EMAILS WERE LOST FOREVER, HOW WOULD YOUR BUSINESS BE AFFECTED? Attacks on small business have skyrocketed in the last 18 months, as hackers target poorly protected systems for ransom.

Consider:

In May this year sophisticated hackers took control of a number of Kiwi builders’ email accounts, sent out fake invoices and stole thousands of dollars from clients.

• How strong is your email password?

• Is it the same as your internet banking?

Scammers are targeting builders because they are more likely to send invoices for large one-off amounts.

• Do you back up all your files daily?

“Not going to happen to me”, I hear you say?

• Who has access to your computer & devices?

Well, consider this:

• Who else opens email on your computer and could click on a dodgy link?

1. In 2015 more than half of all crime in the UK was computerenabled, and it’s becoming more aggressive and sophisticated.

• How would your reputation be affected if your customers were targeted by a hacker posing as you?

There are simple steps you can take to minimise your risk of exposure to a cyber attack, including some basic training for you and your staff. There is also good insurance available, which can provide both ongoing support in the event of an attack as well as reimburse losses.

2. In the same year cyber crime cost New Zealand businesses more than $250m, with the number of incidents globally growing at 38% year on year.

All it takes is to click on a link in an email, on a website that looks legit or through a Facebook post and you’ve infected your computer or mobile device. Hackers can then shut down your system and demand a ransom, often in the thousands of dollars, to release your files.

For a contract works insurance quote contact the CBA Insurances team on 0800 237 843 (ext 2) or go to www.cbainsurances.co.nz.

It’s happened to us here at CBA Insurances and it’s happened three times now to one Tauranga-based builder.

CBA Insurances is the insurance broker for NZCB members, providing all types of commercial and domestic cover. The team has extensive experience and specialise in insurance for builders. We are a member of the Steadfast Insurance Group, whose members have more than 80 offices New Zealand-wide. Contact Gwenda on 0800 237 843 (ext 2) or gwenda@cbainsurances.co.nz.

48

By Paul Hobbs, Registrar Building Practitioner Licensing continually being refined in order to make it more efficient and effective.

Next year is the Licensed Building Practitioner (LBP) scheme’s 10-year anniversary, which is a significant milestone for the Ministry of Business, Innovation and Employment (MBIE) and those involved in the scheme. Many industry groups have thrown their weight behind the scheme and it is also great to see such a high level of engagement and participation across the sector.

• Access to NZ Standards is another area under consideration, and we are investigating what future Standards access might look like for the LBP population.

• Of particular interest to NZCB members is that thought is being given to making qualifications mandatory for new LBPs. This work is at an early stage and there will be plenty of time for the industry to have its say before any decisions are made. Watch this space next year.

MBIE recently released the National Construction Pipeline Report 2016, which provides a detailed overview of projected construction activity for the coming five years. Given things are booming in the construction sector, I thought it was a good time for a behind the scenes look at the LBP scheme.

• Intelligence gained from the complaints function and the feedback from LBPs and industry bodies is being used to improve how cost-effective the scheme is. This includes more targeted education around regulatory knowledge and common issues.

• MBIE recently kicked off a campaign to enhance understanding of restricted building work (RBW) and licensing requirements. The campaign includes print, radio and mixed media advertising and all RBW information can now be easily found at www.building.govt.nz/lbp. On this page you can find a range of information, which includes a short video developed to support people’s understanding of RBW, as well as some new factsheets in Korean, Hindi and simplified Chinese.

• Better and more robust auditing of skills maintenance is on the horizon and is expected to begin late next year.

• A wider review of many Occupational Regulations is underway. The review will look for similarities in these regimes and how they can be aligned and simplified. This is at a fairly high level, but may have long-term influences on the scheme’s direction.

• Criteria are being developed for new licence classes and areas of practice to meet. These will help individuals, industry groups and government to have a meaningful conversation about possible new licence classes or areas of practice, and ensure that any changes to the scheme enhance the integrity and value of the LBP brand.

The above items provide a quick update on initiatives in the LBP space and a quick summary on where the scheme is going over the next five to ten years. While the construction outlook looks extremely positive for the sector, there will no doubt be challenges around meeting resource demands where competent, well-informed practitioners are required.

In conjunction with industry associations I consider the LBP scheme to be a key component in building a more efficient, knowledgeable and professional construction industry.

• The LBP website is up for a rebuild (and relaunch) similar to the look and feel of the recently launched www.building. govt.nz.

• Complaints about LBPs have continued to increase in recent times with growth of 71% recorded over the 2015/16 financial year. While this has placed pressure on the Building Practitioners Board (the Board) and MBIE they have still managed to meet performance targets for processing complaints. In the past financial year the Board considered 193 LBP complaints and handed down a disciplinary sanction to 80 LBPs during the period. On average, this accounts for one disciplinary sanction being handed down to an LBP every 4.5 days. The complaints system is

Paul Hobbs Registrar Building Practitioner Licensing Occupational Licensing Consumer Protection and Standards, Market Services Group

49

FEATURE —

WHAT’S IN THE PIPELINE FOR THE LBP SCHEME?

MEMBERSHIP BENEFITS

FEATURE —

and your fleet elcard

Are you taking advantage of your Membership Benefits?

Special members price for AA membership AA Business Care – Passenger Standard $43.00 per vehicle per year.

Normally costs $67.00.

Vodafone Contact Hope Perry on 0800 422 202 for some great business smart plans with up to one month free on signup!

m to manage fleet costs and product restrictions

Access to the resources of CBA Insurances Limited – your general Insurance Brokers. cbainsurances.co.nz

Vehicle Signage, Site Signs & Business Cards

0 retail stores, 60 truck s nationwide

Struggling to find the time to arrange vehicle signage or business cards? We’ve brought some Innovation Brokers on board who will make your life easier.

They can arrange: • Vehicle signage • Site signs • Business cards all from a local source and at a great price!

Check out the Deals & Discounts section on

the NZCB ToolShed for more info!

The Caltex StarCard® is an excellent way to efficiently manage your fuel expenses and reduce your running around costs. For more info see the NZCB ToolShed.

elcard.co.nz

NE

pfinder.co.nz

W!

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. Download an application form on the NZCB ToolShed..

13/09/13 1:36 PM

Receive a ‘cost + %’ discount on most Noel Leeming products. Noel Leeming discount vouchers also available for your client

Certified Plans This scheme is a powerful tool to help secure new clients and new home building projects! The plan range consists of approximately 32x architecturally designed new home plans. To join the scheme see ‘Certified Plans’ on the NZCB ToolShed.

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A range of NZCB stationery available including: presentation folders, letterhead, stickers, electronic logo’s, invoice books, variation books, site signage and much more. View the online shop in the NZCB ToolShed.

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 by stating that you are a current NZCB member.

Digital Marketing with Yellow With more Kiwis looking for building professionals on the internet, it’s time to start thinking about what people find when they search for you online. Get started with these digital marketing specials…

Discounted Publications Get the members rate for NZS3604:2011, E2 Moisture Manual 2011, NZS Onsite Handbook or any other Acceptable Solution. See ‘publications’ on the online shop

• Showcase your work with a website all managed by Yellow • Get listed on NZ’s No.1 digital business directory • Generate real leads online See nzcb.yellow.co.nz for all the info.

NE

W!

Online Business Services Running a successful business requires a lot of effort behind the scenes. Dealing with contracts, managing staff, maintaining standards and promoting your services are all important. We can save you time, money and stress by helping with: • Building contracts to complete online for your clients

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? See your local Toyota dealer and mention you’re a Certified Builder for some great Tradie deals.

• Apply for the Halo 10 Year Residential Guarantee Insurance • Notice of Variation • Disclosure Statement • Employment agreements to suit your staffing needs • Access to Certified Builders logos • Regional event calendar • ‘Find your builder’ regional search engine

ToolBox Seminars NZCB hold several ToolBox Seminars throughout the year to keep our Members informed and educated. Keep and eye on your emails & regional calender on the NZCB ToolShed for dates.

Clothing NZCB provide a wide variety of clothing tailored to suit the building industry. The clothing is branded with the NZCB logo and your own company logo can be arranged. Check out the Online Shop in the NZCB ToolShed.

MEMBERS TOOLSHED LOGON AT NZCB.NZ 51

FEATURE —

Professional Development All trade qualified builders need to provide evidence they’re up-to-date with best industry practice. We can help by offering a number of ways to gain skills maintenance points through the following professional development opportunities: • Free copies of InHouse magazine • Access to ToolTube videos • Trade Training meetings held frequently throughout our 22 regions • New regulations published in our Online Knowledge Centre • Annual Conference with expert workshops and seminars.

ASSOCIATION NEWS —

6 FREE HELP LINE SERVICES For all Members 1. Contracts PETER DEGERHOLM Contract issues?

Call Peter for a free 20 minute session.

Ph: 03 442 6006 Mob: 021 307 232 Email: peter@calderglen.co.nz

OFFICE CLOSURE

2. Business Legal Issues GEOFF HARDY For up to 20 minutes of free legal advice on business-related issues, phone Geoff on 09 379 0700, any time between 8.30am-5.30pm weekdays.

NZCB National Support Office will close at midday on Friday 23rd December 2016. The office will reopen at 8.00am on Monday 9th January 2017.

3. General Business Accounting or Tax STEVE BROCKLEBANK For general business,accounting or tax issues you can contact Steve Brocklebank of PricewaterhouseCoopers.

You must identify yourself as a NZCB member and any information you disclose will be treated with confidence. Call Steve Ph: 03 470 3615

We wish you all a wonderful and safe holiday!

4. General Insurance JIM RICKARD General Insurance issues?

Call Jim at CBA insurances.

Ph: 07 579 6259 Mob: 0274 505 528 Email: jim@cbainsurances.co.nz

End of Year Orders and Online Shop Closure Online Building Contracts & Employment Agreements Online Building Contracts & Employment Agreements will be accessible on the Members ToolShed over the Christmas period. You will be invoiced in mid-January.

5. Employment DANNY JACOBSON TRUDY MARSHALL For advice on employment related issues, call for a free 10 minute session.

Ph: 07 928 0529 Mob: 021 857 529

Fisher & Paykel Orders Please have your F&P orders in by midday on Monday 19th December.

Stationery | Clothing Please have your stationery orders in by midday on Monday 19th December so the office elves can package them up and send them out before we close down! Any clothing orders placed after Monday 19th December will not be processed until mid-January 2017.

6. Health & Safety HAZARDCO For advice on any health and safety issues, call Hazard Co for a free 30 minute session.

Ph: 0800 555 339 Email: info@hazardco.com

Online Shop Closure The online shop will close on Monday 19th December at 11.00pm.

It will reopen at 8.00am on Saturday 7th January 2017.

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Without their continued and valued support, the services we provide to our members would be significantly more difficult to deliver, so big thank you to you all.

Firstly, the thoughts of all members of the New Zealand Certified Builders Association go out to those who have been affected in any way by the recent earthquakes, centred around the Kaikoura area. A very difficult time for you all and we sincerely hope that you are getting through this difficult time. I know I can say on behalf of all our NZCB community, that if there is anything we can do to help or assist, you only need to give us a yell. We have opened various communication channels to advise of the offers of help as well as to provide updated information as we get it. The NZCB Board have also been contacting all in the affected regions to offer our help. Our members have already been active on the ground in helping with emergency repairs.

As we move into the holiday season, staying safe and healthy remains a priority to us all. I have to admit my own personal failure in this area recently. During a recent mountain biking expedition, I failed to take heed of the warning signs (being a good kiwi bloke who does a lot of biking, I don’t need to take any notice of these, because I can do better) resulted in a trip over the handlebars, down the side of a steep and rocky bank, fully immersing myself, my phone and my bike into the river below. Slight concussion, several cuts and bruises, a hefty repair bill to my bike and very, very bruised ego – I was again reminded of the simple need for us all take Health and Safety seriously at all times.

Thanks to the staff at National Support Office for your efforts and commitment over the past year, and also to all our members, who have once again provided commitment and support to NZCB. The efforts of you all is most appreciated.

It’s worthwhile taking time to pause to reflect on the activities and the achievements over the past year. For all NZCB members, it has been a year of very busy workloads, with most heading into the New Year with good solid pipeline of work ahead. This comes with its challenges however, including shortages of skilled labour, lead times for building materials extending out and the pressure applied from other people (subcontractors, councils, engineers etc.), who are part of the standard construction project puzzle. The economic forecasts are that this high demand will continue for many months, and possibly years in many regions.

I hope you and your families have an enjoyable and restful Christmas break, a safe New Year and come back in 2017 with batteries charged, ready for another productive year ahead.

The Association has also had a very busy year with the launch of our new brand, brand positioning and a reshuffle of our name; the introduction of the new homeowners guarantee policy – Halo – with its unique and world class benefits to our members; the reshape and resize of the NZCB Board; continued growth in our media profile; launch of our new television commercials; commencement of our new building to house National Support Office; continued growth of our member numbers, and the myriad of business as usual activities.

On reflection, a busy year and indeed an almost groundbreaking year for us all.

Grant Florence Chief Executive

I would also like to take the time to give thanks to the support we receive from our family of commercial partners. In particular, the support from our Strategic Partners: • Winstone Wallboards (Gib) • Metro Performance Glass • ITM • Carters • Mitre 10

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MESSAGE FROM THE CHIEF EXECUTIVE —

A BUSY YEAR FOR ALL…

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