NZ Contractor 1602

NEW ZEALAND’S CIVIL CONTRACTING INDUSTRY MAGAZINE

ROLLING IN THE DEEP Another Bomag roller for SouthRoads enables its Southland Region division a better quality roading finish.

INSIDE: Alice strips down and says farewell Contract bundling – the early years with Chris Olsen Directional drilling – the clever way to lay pipes CCNZ’s Peter Silock – seven months into the top job

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CONTENTS CONTRACTOR

INSIDE: Regulars 4 Editorial 6 Upfront 14 On the Cover 48 Classic Machines 52 Motoring 54 Innovations 56 Civil Contractors NZ Comment 56 Advertisers’ Index

Profiles 16 Peter Silcock 30 Chris Olsen

Comment 40 Neil Tilbrook Voidable preferences – a contractor’s view

42 Peter Silcock CCNZ 43 Tommy Parker Group Manager Highways, NZTA 44 Helmut Modlik Connexis 45 Hays Recruitment

26 Highlights / Features 18 Alice strips down and says farewell

Dismantling the tunnelling machine that chewed her way through 800,000 cubic metres of spoil under Auckland and laid more than 24,000 tunnel lining segments in her wake for the country’s biggest ever highway project, the $1.4 billion Waterview Connection.

24 Well earned industry accolades

The country’s first Certified Civil Tradespeople were honoured at the Civil Trades national launch at Parliament in early December. The group were part of a pilot programme for the Civil Trades Recognition of Current Competence (RCC) pathway.

26 Drilling under the mighty Waikato

Directional or slant drilling is relatively new and a technology that has increased in accuracy over the past decade and has been driven by the oil and minerals sectors.

34 Smart Shelter equals smart business

Downer’s recent Smart Shelter initiative indicates the contracting company’s future is clearly paved in more than one direction.

ON THE COVER SouthRoads has added another Bomag roller to its equipment stable, enabling its Southland Region division to guarantee a better quality finish on its bigger asphalting projects.

See page 14

38 Specialists meet over corrosion

Managing corrosion in concrete, steel and other materials needs to start from day one of any structure’s lifecycle says the Australasian Corrosion Association, which recently hosted its 55th conference in Adelaide.

46 Ariana Stuart & Stuart Robertson Kensington Swan

47 Janet Brothers Lifecare Consultants

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34 FEBRUARY 2016 3

CONTRACTOR EDITORIAL

That’s a lot of spend A quick glance through the upfront section of this issue and the project dollar figures that stand out among the news briefs are enough to make your eyes water as the Government commits to ongoing infrastructure investment, which includes a $13.9 billion land transport programme between now and 2018, and $110 billion spend over the next decade.

Our existing transport network is an $80 billion asset, and the cost of maintaining and improving this asset costs central and local government around $4 billion every year.

These birds-eye details can be found in our new 2016 Contractor Perspectives which was sent out last month. If you haven’t received a copy of this annual publication with its two-year focus (the year just gone and the year ahead), send us an email and we will pop one in the post to you.

Our first Contractor magazine for 2016 has a diversity of subjects to start off your reading for the year.

Chris Webb, who is our technical writer, details the final journey of Alice, which played such a critical role creating the twin tunnels in the $1.4 billion Waterview Connection project – the country’s most expensive transport project. For us Auckland residents it is an awe-inspiring sight to drive through this massive concrete and steel project as it is built over motorists’ heads.

Contributor Richard Silcock profiles the new CCNZ chief Peter Silcock (a distant relie), who is now seven months into the job. “With the government’s recent announcement of a $110 billion infrastructure plan for the next 10 years, I believe the contracting industry as a whole can look forward to a lot of work going forward,” Peter iterates on the industry’s future.

I interview Chris Olsen, an engineer with a strong local and central government background who is very well known to most of you, particulary when he was the chief of Roading NZ. I talk to Chris about his early involvement in bundling performance contracts as part of the on-going series I have been writing on the Transport Agency’s Network Outcomes Contracts, which represent such a paradigm shift in the way highway maintenance is now contracted out, but is a concept that started as an idea two decades ago. Chris provides a personal insight into those early days, both from a local government and a central government agency perspective.

Another theme we love to focus on in this magazine is the application of new technology.

As Peter Silcock points out; “Going forward is about meeting the pace of change by working smarter and using technology.”

We bring you two technology stories – one about the use of extremely accurate modern directional drilling (in this case under the Waikato River) and, for something different, the new Smart (bus) Shelter developed out of the Chorus Innovation Lab in Auckland, and a collaboration between Downer, AlcatelLucent, Solta, Designbrand, Samsung and Schneider-Electric. Downer’s main role was as lead systems manager and project manager. Who said civil contracting is only about shifting dirt?

Finally, make sure you read our comment pieces. The authors go to a lot of trouble to reward you with valuable information that affects your jobs and businesses, and even your health.

As Janet Brothers from Lifecare Consultants asks – “Gout or childbirth – which is the most painful?”

Well, at least one of these conditions is short-lived and gender related, and you really want to avoid the other one.

Keep on moving dirt and stuff for a better future.

Alan Titchall, editor Dear Editor I would like to congratulate you and your magazine for recognising the worth of having Richard Campbell (Classic Machines) contribute to your great magazine.

Just like the book called, Mighty Moves’ by Bee Dawson depicting the New Zealand heavy haulage industry, I could see a good publicity move (and some monitory gain) for the CCNZ if you encouraged and assisted Richard in producing a book (like Mighty Moves) on the specs and history of earthmoving plant.

Regards, Andrew West (Not a bad idea thanks Andrew – Ed) 4 www.contractormag.co.nz

PUBLISHER Contrafed Publishing Co Ltd Suite 2.1, 93 Dominion Road, Mt Eden, Auckland PO Box 112357, Penrose, Auckland 1642 Phone: +64 9 636 5715 Fax: +64 9 636 5716 www.contrafed.co.nz GENERAL MANAGER & EDITOR Kevin Lawrence DDI: 09 636 5710 Mobile: 021 512 800 Email: kevin@contrafed.co.nz EDITORIAL MANAGER Alan Titchall DDI: 09 636 5712 Mobile: 027 405 0338 Email: alan@contrafed.co.nz REGULAR CONTRIBUTORS Malcolm Abernethy, Mary Searle Bell, Richard Campbell, Hugh de Lacy, Chris McCann, Cameron Officer, Richard Silcock, Lawrence Schäffler, Chris Webb.

ADVERTISING / SALES Charles Fairbairn DDI: 09 636 5724 Mobile: 021 411 890 Email: charles@contrafed.co.nz ADMIN / SUBSCRIPTIONS DDI: 09 636 5715 Email: admin@contrafed.co.nz PRODUCTION Design: TMA Design, 09 636 5713 Printing: PMP MAXUM

Contributions welcome Please contact the editor before sending them in.

Articles in Contractor are copyright and may not be reproduced in whole or in part without the permission of the publisher.

Opinions expressed in this magazine are not necessarily those of the shareholding organisations.

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The official magazine of Civil Contractors NZ www.civilcontractors.co.nz The Aggregate & Quarry Association www.aqa.org.nz The New Zealand Heavy Haulage Association www.hha.org.nz The Crane Association of New Zealand www.cranes.org.nz Rural Contractors New Zealand www.ruralcontractors.org.nz The Ready Mixed Concrete Association www.nzrmca.org.nz Connexis www.connexis.org.nz

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CONTRACTOR UPFRONT

Tauranga work continues Following the successful completion of the Tauranga Eastern Link (TEL), work has now started on the Baypark to Bayfair (B2B) Link Upgrade. The $102 million project will connect with the TEL to complete the Eastern Corridor, and include two flyovers, one which will take State Highway 2 over the Maunganui-Girven intersection and a second taking State Highway 29A over the railway line and the Te Maunga intersection. The link will separate local and state highway traffic, and improve the route to the Port of Tauranga.

The first stage, which is expected to take five to six months, has been awarded to Fulton Hogan. It involves shifting the East Coast Main Trunk railway line to the west of Owens Place, and building a noise wall and two retaining walls alongside the site of the new railway at a cost of $4.1 million.

Once finished, KiwiRail will start on stage two of the relocation, setting ballast, installing signals and laying new track. The railway line is expected to be relocated by late 2016, with work on the second phase of the project set to start in 2017, following the tender process.

The Transport Agency will award the main contract “later this year”, and aims to have the flyovers open to traffic in 2020.

Messe Munchen buys into Moscow Messe Munchen, owner of the bauma trade fair for construction machinery, which will be held again from April 11-17 in Munich, has expanded into Moscow, buying CTT Moscow, the world’s fifth largest construction machinery trade fair. The purchase adds to Messe Munchen’s fairs in Munich, Shanghai, Johannesburg and New Delhi. The company is also a partner of Conexpo Las Vegas, Santiago and Tehran, and Batimatec in Algeria.

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More than just two tunnels

Artist’s impression of the new footbridge over SH20, near the southern entrance to the Waterview tunnels.

Much has been made of the impressive construction of the twin tunnels which make up the majority of Auckland’s Waterview Connection to be opened in early 2017.

But it’s also a project of many parts; and here’s another beauty. The new Hendon Street footbridge, installed in early December, will open at the same time as the entire project. This landmark feature stands at the southern approach to the tunnels on SH20.

The footbridge is 300 metres long, and has a 110-tonne central arch, providing pedestrian and cycling access between Owairaka and New Windsor as well as connecting to the southern shared path and new sports fields at Valonia Street and Barrymore Road.

Promoting the industry It wouldn’t be summer at Russell without Alistair McIntyre (Doug the Digger) playing the role of Father Christmas and promoting the industry through his mini digger.

Some of the kids who lined up for a turn over the holidays were a bit bigger too – pictured is Mike Block from Bayleys in Takapuna, Auckland.

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CONTRACTOR UPFRONT

While one section of $2.1 billion Waikato Expressway finishes NZTA opened the 16-kilometre 4-lane Cambridge section of the Waikato Expressway on December 16 – six months ahead of schedule.

The $250 million Transport Agency project stretches from the Tamahere Interchange on State Highway 1, to just south of Cambridge, and is the third section to be completed after Te Rapa and Ngaruawahia sections. HEB Construction, working with the Transport Agency, designers AECOM and Opus moved 1.25 million cubic metres of earthworks, 300,000 tonnes of concrete and had up to 350 people working onsite during peak times.

It’s estimated that the new road will remove 10,000 vehicles a day from the streets of Cambridge.

Front left: David van Schie, Michael Long, James McCutcheon, Steve Watts (captain), Andrew Goodfellow and Russell Dixon (Scania instructor).

CablePrice team are Scania Top Team champions The CablePrice Christchurch Shakers are officially the Scania Top Team world champions for 2015, having taken out the title in Sweden in early December. The Shakers beat 8000 technicians from around the world to reach the finals, winning the Asia round in Shanghai ahead of Singapore, and in the grand final knockout were up against Brazil, UK (KelTruck branch), and Australia who were the front runners in the lead up to the competition having previously taken out the title in both 2011 and 2013.

The Shakers have been awarded €50,000 to go towards improving the training and development at the Christchurch branch of CablePrice.

… another is just getting started A consortium of contractors and designers has been awarded a contract to build the biggest roading project to be undertaken in the Waikato, the Transport Agency says.

The 21-kilometre long, $973 million Hamilton section of the Waikato Expressway will be constructed by a group made up of Fletcher, Beca, Higgins and Coffey (FBHC), in an alliance with the Transport Agency.

The proposed design for the section includes five interchanges, 17 bridges and new connecting roads at Ruakura Road and Resolution Drive. Construction will start in spring this year. The entire Waikato Expressway is due to be completed in 2020.

Work on a $4.5 million roundabout designed to improve safety and support future industrial growth around the Hamilton Airport will have just started, says NZTA. The four-leg, two-lane roundabout will replace the intersection of State Highway 3 (Ohaupo Road) and State Highway 21 (Airport Road), south of Hamilton.

It will be built by Schick Construction and Cartage, with work expected to wrap up in May. The roundabout has been designed to provide a safer entry to and from Airport Road (SH21) and nearby the Titanium Park Joint Venture development, which has contributed significantly to the project cost.

It will also improve traffic flows to the nearby Mystery Creek Events Centre and Fieldays site.

The Transport Agency’s Waikato highway manager Kaye Clark says the SH3/21 intersection has been the scene of 24 crashes, including five fatal or serious injury crashes, in the past five years.

“Most of the crashes at this intersection over the past five years involved right turns into and out of SH21.

“Our data shows that changing a T-intersection to a roundabout reduces death and serious injury crashes by 90 percent, while the total number of crashes reduces between 25 to 80 percent.”

8 www.contractormag.co.nz

SOURCE NZTA

Hamilton Roundabouts multiply

The 90-year-old single lane bridge over the Kawarau River is to be replaced.

New Kawarau Falls bridge underway McConnell Dowell Constructors has started work on the new $22 million Kawarau Falls bridge on SH6 at Frankton, near Queenstown.

The bridge is part of the government’s Accelerated Regional Roading Package announced in 2014. Completion is expected in the second half of 2017.

The new bridge will replace the existing historic 90-year-old single lane bridge which can no longer handle the 7000 vehicles which use it every day. It will be retained and become part of the Queenstown Trail cycling and walking network.

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CONTRACTOR UPFRONT

TransDiesel expands TransDiesel has purchased the Pacific Material Handlings (PMH) New Zealand business which is primarily for the distribution of the Sennebogen material handling range.

Sennebogen offers a wide range of material handling machines for scrap handling, waste/recycling, timber handling, port handling and demolition applications. TransDiesel CEO Mike McKessar says, “TransDiesel has seen continued growth to its business over the past four years since acquiring the NZ distributorships for Volvo and Yanmar construction equipment and this is an exciting addition to the TransDiesel product portfolio, as we already provide service to a number of Sennebogen machines around New Zealand and have a common customer base.” PMH staff Kevin Hickey and Fred Phillips will join the TransDiesel team in Auckland.

The Linden Comansa cranes have been part of the landscape during the eight-year construction of the Cadiz bridge in Spain.

An office with a view Two Linden Comansa tower cranes have been working for eight years building the Bridge of the 1812 Constitution, linking Cadiz with Puerto Real in Spain. The three-kilometre bridge’s pylons are 185 metres high, while the deck is 69 metres above sea level. The two cranes peaked at 195.6 metres each.

Christmas start for Auckland’s City Rail Link (CRL) Just days before Christmas, 80 people gathered in Auckland’s CBD for a dawn blessing to mark the start of the CRL. The first stage of the $2.5 billion project is the installation of a replacement stormwater pipe under Albert Street so that the existing one can be removed when work on the CRL tunnels starts in the middle of next year.

Auckland mayor Len Brown, who has championed the CRL, said, “In 1923 Railways Minister Gordon Coates gave his support for a city-to-Morningside underground rail line that never happened. In the 1970s, mayor Sir Dove-Myer Robinson’s rapid-rail proposal met

a similar fate. Today’s blessing means that in the coming months, Aucklanders will see the CRL starting to take shape.”

Meanwhile, at press time speculation has arisen that the government was to confirm it’s happy to fund its agreed 50 percent share of the CRL two years earlier than previously indicated, to take advantage of the opportunities around other private sector developments already slated to begin around the city.

The announcement was expected as part of a wider update on the government’s position on Auckland’s infrastructure needs on January 27.

Change to payment claims under construction contracts While the most important changes to construction contracts won’t come into effect until this year and 2017, a significant change affecting all CCNZ member payment entitlement came into effect in December last year.

With the removal of the distinction between a residential and a commercial construction contract, all construction contracts entered into from December 2015 (or renewed on, or after, that date) are treated the same. Importantly, all payment claims issued under those new (or renewed) contracts must now be accompanied by a written outline of the process for responding to the payment claim, and an explanation of the consequences

10 www.contractormag.co.nz

of not responding, and of not paying the claimed amount, or the scheduled amount in full (whichever is applicable).

This written outline must be in Form 1 – as prescribed by the newly-released Construction Contracts Amendment Regulations 2015.

What this means is that, unless you attach Form 1 to every new, or renewed, contract payment claim you have issued from last December, it will not be CCA compliant.

For more information contact either Malcolm Abernethy at CCNZ, 0800 692 376, or Mary Haggie or Stuart Robertson at Kensington Swan on 09 379 4196.

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CONTRACTOR UPFRONT

VDAM submissions February 17 is the last day for submissions on changes to the Land Transport Rule: Vehicle Dimensions and Mass 2002 (the VDAM Rule).

Early finish for Cambridge Construction Hamilton’s busiest roundabout at Hillcrest has had a $2.6 million upgrade to help ease congestion. With 37,000 vehicles per day using the intersection, it wasn’t an easy job for Cambridge Construction, but it managed to wrap up two weeks ahead of schedule. Most of the work was completed at night.

Caversham Valley upgrade complete

Sky City chief executive Nigel Morrison (left) and Fletcher Building chief executive Mark Adamson were on hand to witness the beginning of demolition works on 16 buildings that currently occupy the future site of the 32,000 square metre convention centre and 5-star, 300-room hotel.

Convention Centre begins Fletcher Construction has started the first phase of work on the New Zealand International Convention Centre (NZICC), formally kicking off the 38-month building project.

The demolition project is the first phase of what is one of the largest construction projects in downtown Auckland since the Sky Tower was built, also by Fletcher Construction, in 1997.

The $700 million project will create an estimated 1000 jobs onsite during the build plus an additional 2000 jobs in associated industries flowing on from the construction project, according to Fletcher Construction.

New NZTA CEO Fergus Gammie has been appointed the new chief executive of the NZ Transport Agency, with effect from next month. He will replace Geoff Dangerfield, who announced his intention to leave the role late last year. The appointment follows an international recruitment process that attracted a very “strong field of candidates”.

Gammie is a former chief executive of Auckland Regional Transport Authority (ARTA), chief operating officer of Auckland Transport, and deputy director General Transport Services of Transport for New South Wales, where he is currently deputy secretary Infrastructure & Services. With responsibility for leading a team of 1300 staff, managing an annual operating budget of A$5 billion and infrastructure and systems projects totalling A$11 billion over the next four years, Gammie certainly knows his way around infrastructure development.

A Kiwi, Gammie is returning home, and holds a BA from Victoria University in Wellington and a Certificate in Management from Henley Management College.

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Downer has completed the second and final stage of the $45 million Caversham Highway Improvement project, which it started in 2010. About 25,000 vehicles a day use the highway, making it the busiest highway corridor south of Christchurch. The improvements have created a fourlane median divided route between Andersons Bay Road and Lookout Point.

Christchurch Cycleways multiply Christchurch City Council has given the green light to two more cycleway projects. Two consultant groups will do the detailed design work and manage construction of the routes on behalf of the Council.

Peloton (a group comprising staff from Beca, GHD and MWH) will be responsible for the Papanui Parallel and Quarryman’s Trail cycleways as well as the section of Little River Link through Addington. And a team from Opus and Aurecon, named Velos, will deliver the Uni-Cycle and Rapanui — Shag Rock Cycleway.

Progress for East West Link The East West project, which is one of the top three transport priorities for Auckland, will now start gathering the necessary planning approvals and consents to protect the route between Onehunga and Mt Wellington.

At the same time, the Transport Agency and Auckland Transport are planning to start work early this year on a package of improvements aimed at providing some early benefits to freight and public transport users on both the motorway and local road network.

The Southwestern Motorway will also be widened to four lanes in each direction between Queenstown Road and Neilson Street and bus shoulder lanes will be added all the way to Kirkbride Road towards the airport.

CCC to sell City Care Christchurch City Council has announced plans to sell its 100 percent subsidiary, City Care to alleviate the council’s financial woes.

Christchurch City Holdings chief executive Bob Lineham says City Care, with revenue of $334 million in the 2015 financial year, is expected to generate strong interest from potential buyers.

“City Care is an attractive asset, with a presence nationally and expertise across a range of portfolios including parks maintenance, facilities management, civil construction, building construction, landscape development, water and wastewater and roading. Any sale needs to meet price expectations but we are anticipating strong interest in City Care.”

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CONTRACTOR ON THE COVER

Rolling in the deep SouthRoads has added another Bomag roller to its equipment stable, enabling its Southland Region division to guarantee a better quality finish on its bigger asphalting projects.

CONTRACTING FIRM SOUTHROADS specialises in roading and civil engineering. From its bases in Southland, Otago and southern Canterbury it operates throughout the lower South Island, undertaking road maintenance and construction work as well as building subdivisions, bridges, underpasses, driveways and more.

Its employs around 180 staff across its six depots and utilises a wide range of machinery. The company’s preferred brand of roller is Bomag. The latest addition, purchased from Porter Group, is a Bomag BW 151 AD-5 Asphalt Manager – a shiny new, 7.6 tonne roller.

The new acquisition is part of ongoing growth in the company and is to be put to work in the Southland and Queensland Lakes districts. Manager Kirk Given says the region has come back to life after being dormant for a while. His division has a team of about 35 staff and has a number of projects on the books for which the new roller will be very useful.

“We’ve just finished a sizeable roundabout on State Highway 6/ Stalker Road intersection in Queenstown which it would have been very useful on,” says Kirk.

“The first time we’ll probably use it is on the new yard we’re constructing for South Port in Invercargill – for their freight terminal.”

The yard will comprise 3500 square metres of polymer modified asphalt. It is being built on an old railway yard. When we spoke to Kirk in mid-January the team had cleared the site and excavated it.

14 www.contractormag.co.nz

Next will come the installation of drainage and then the pavement construction. He expects they will get to the asphalting in March.

The new Bomag will be the fourth for the division – it currently has three smaller Bomag rollers in the equipment line up, and the construction crew boasts some big ones. But this mid-size roller will fill an important gap.

“We needed something for the bigger asphalt jobs,” says Kirk.

“We’d rather have our own instead of hiring one as you can’t guarantee what you’re getting.

“More and more we’re having to lay specialised asphalts and you need to get them right – this is easier with your own roller. With a rental you don’t always get a good machine but you have no choice – the availability is just not there sometimes.”

The reason SouthRoads went for a Bomag over the other available brands was because of its superior technology. The Bomag Asphalt Manager allows the operator to dial in the desired layer thickness and start driving.

“It makes it easier to get the desired compaction,” says Kirk. “The operator doesn’t have to count passes – the machine does it all.”

Bomag says its Asphalt Manager will control and monitor the whole process – material, degree of compaction, temperature, control of the direction of compaction – allowing the driver to simply concentrate on the rolling pattern. And with Asphalt Manager fewer passes are needed, saving time and fuel.

“More and more we’re having to lay specialised asphalts and you need to get them right – this is easier with your own roller. With a rental you don’t always get a good machine but you have no choice – the availability is just not there sometimes.”

At the end of compaction, when asphalt has cooled down, the amplitude is reduced so the roller automatically prevents aggregate crushing. All parameters (stiffness, amplitude, temperature) and the end of compaction are continuously displayed to the driver.

Another plus for the Bomag, according to Kirk, is the machine’s good looks (“some of the other rollers look the same as those that came out 15-20 years ago”). And, more importantly, its good visibility for the operator. The roller has a sliding seat and folding window allowing an unobstructed view of the drum edges.

“You get a good clear view over the drum,” he says.

SouthRoads purchased the roller from Bomag distributor Porter Group. It says the brand is recognised as the worldwide compaction equipment leader, ranging from vibratory tampers and plate compactors to recycling equipment and landfill compactors. Its range of rollers includes single drum and articulated tandem rollers suitable for any project.

The Bomag BW 151 AD-5 Asphalt Manager chosen by SouthRoads boasts fast and easy maintenance, with all service points readily reached from the ground; an optimised driver’s station with both comfort and a good view; reliable, documented compaction thanks to BCM (Bomag Compaction Management) technology; and excellent fuel economy in Ecomode.

•

FEBRUARY 2016 15

CONTRACTOR PROFILE

Getting to know Peter Silcock Formulating policy, advocating and encouraging more young people to enter the industry are at the top of the agenda for the new Civil Contractors association chief. Peter Silcock chatted with RICHARD SILCOCK (a distant relation) about his new job, his background, the issues he sees facing the industry and where he would like to take the organisation.

“From a leadership perspective both the commercial growing and contracting industries have many similarities.

I often say they both move dirt but for different reasons!”

16 www.contractormag.co.nz

PETER SILCOCK TOOK over the reins at CCNZ some seven months ago after three decades advocating for the horticultural industry.

At 57 he says his bungee-jumping and mountain biking days may be over, but he is still very excited about his new role.

Born in Christchurch, he moved to Lower Hutt with his parents and attended Naenae College before going on to Victoria University where he qualified with a BSc degree. Geography, he says, was his strongest subject and he had early thoughts of becoming a secondary school teacher. His first job, while still at university was however with a small construction firm and after graduating he took up a position with the Lands and Survey Department (now Land Information NZ) in an administrative role which saw him assisting new farmers get onto farms. This, together with being involved in the formation of the Whanganui National Park in the mid-80s, provided the beginnings of acquiring good negotiation skills and dealing with people.

Such skills were soon noticed by other employers. The New Zealand Vegetable Growers Federation offered him a role as executive officer and this introduced him to working for an industry advocacy organisation. When the chief executive position becoming vacant six years later, he was appointed into that role, a position he retained for seven years. In 1997, while still retaining his role at Vegetable Growers he was also appointed chief executive of the NZ Fruit Growers Federation.

When the two amalgamated in 2005 Peter was retained as chief executive and this saw him manage the merger of the two organisations and the rebrand as Horticulture New Zealand.

“Working with growers was very satisfying and with over 5000 members in the industry they collectively play a very important part in the wellbeing and economy of the country,” he says.

The role took him all around the country, interacting with growers, listening to their issues, and banging the drum on their behalf on a range of things – from biosecurity and border protection matters through to marketing and driving a growing export sector. This often involved considerable liaison with governments and being the face for the media. Such was his success, he became known as ‘Mr Horticulture’ with a high media profile and the go-to person the media sought out for comment.

Looking for another challenge early last year, he was ‘asked’ if he would be interested in heading up Civil Contractors and he again jumped at the chance.

“While the membership of Civil Contractors is small by comparison (400 members and 200 affiliated members), I saw an opportunity to bring my particular skill set of industry representation, leadership and building relationships to the role, while continuing to build on the work achieved by my predecessors.

“From a leadership perspective both the commercial growing and contracting industries have many similarities. I often say they both move dirt but for different reasons! Both involve

working with and empathising with people, offering guidance, formulating policy, representing members, advocating, fostering innovation and promoting change where needed.

“To some degree both industries are interrelated.”

Both rely on each other, he adds, for without the infrastructure of roads and ports etc growers would not easily get their produce to market, and conversely the development of roads and ports would not be given the same priority without the need for conveying freight and produce to market.

“While the particular issues and challenges for the two industries may be different, I see financial survival in a constantly changing business environment as being the most critical challenge ahead.

“With the government’s recent announcement of a $110 billon infrastructure plan for the next 10 years, I believe the contracting industry as a whole can look forward to a lot of work going forward.

“It is however going to be about meeting the pace of change by working smarter and using technology. Business is becoming more complex, so it is about being mindful of the environmental legislation, the changes in work procurement processes, following principles of good practice, working in an increasingly competitive market and meeting the new health and safety requirements.

“I see our role as being not only the industry voice and supporting and providing value for our members, but also assisting them to meet the challenges and adjustments ahead.

I also see us inspiring young people to look at contracting as a good career and a job of choice. We cannot all be brain surgeons or astronauts, but we will need good digger operators for example who can follow a plan and understand and use the new technology if we are to build this quality infrastructure.”

On the subject of the RMA and the new Health and Safety Act (the latter comes into force at the beginning of April), Peter says he sees the RMA as requiring some streamlining in balancing the environment with development.

“There have been some time-consuming ‘roadblocks’ experienced in the past with legal hearings etc holding up some developments. While being mindful of the environment and working to conserve it, construction for the benefit of the community must be considered.

“Engagement, consultation and building relationships with affected communities by and large finds an equitable pathway forward that is suitable for contractors, the client and the public.

The new Kapiti Expressway is a good example of this where wetlands have been preserved and even added to.

“In relation to the Health and Safety Act, I believe it is a step in the right direction. We need to foster greater employee engagement and get people away from the notion of she’ll be right, as is so often found in smaller organisations, and follow a policy of good practice with good systems in place and a culture of safety for all concerned. Many companies already have good work-safe practices in place and as an organisation we are working with the NZ Transport Agency and the Construction Safety Council to inspire people and organisations to work safely and with due diligence.”

As to the future, Peter would like to see Civil Contractors as an organisation take on more leadership through the provision of advocacy and the dissemination of timely information and communication through more open, two-way dialogue with members. An increase in the frequency of the member newsletter is also on his agenda.

“I am also very supportive of the recently announced Civil Trades Certificate. It will help lift the perception of the industry and the expertise of the people who work in it, and provide recognition of the skills they have.”

On a personal front Peter is spending time with his children and says he pursues other hobbies such as gardening and watching sport – activities which he shares with his wife Annie. Finding a good work-life balance is, he says, important and having just returned from a relaxing summer holiday at Woolley’s Bay near Tutukaka, Peter says he is ‘recharged’ and ready to meet the challenges ahead for the contracting industry.

“I am passionate about the task ahead and hope I can make a significant contribution for the benefit of the contracting industry,” he says.

“At the end of the day I would like to think people will say, Peter has done a good job and put his all into it.”

WORKING ON BUILDINGS CONSTRUCTED BEFORE THE LATE 1990s?

Chances are you’re removing material with asbestos in it.

Licensing for removing materials with asbestos in them is being introduced on 4 April 2016, along with other regulatory changes.

For more information go to: www.business.govt.nz/ worksafe/asbestos or call us on 0800 030 040.

a

ASBESTOS

FEBRUARY 2016 17

CONTRACTOR PROJECT

CHRIS WEBB says farewell to Alice, the

tunnelling machine that chewed her way through 800,000 cubic metres of spoil under Auckland and laid more than 24,000 tunnel lining segments in her wake for the country’s biggest ever highway project, the $1.4 billion Waterview Connection.

ALICE, ONE OF THE world’s biggest tunnel boring

machines (TBMs) ever built, has been reduced to her component parts ready to be shipped back to her German maker.

A significant chapter in our rich construction history is drawing to a close, with the dismantling and removal of ‘Alice’, the giant TBM used by the Well-Connected Alliance to drive twin 2.4 kilometre tunnels for the $1.4 billion Waterview Connection.

This delicate and challenging operation, is scheduled to be completed this month (February)

by Smith Crane and Construction (SCC).

18 www.contractormag.co.nz

Game changing Jason Bourke, the company’s national crane hire manager, says construction of one of our longest and biggest ever road tunnels has been a “game changing” project for SCC. “The New Zealand Transport Agency’s [NZTA] Waterview Connection project is the biggest job we have ever undertaken. For a South Island based company to have fought off companies from Australia and all over the world to secure the contract was very satisfying and shows we can

tackle the heaviest work.”

Two of the country’s biggest cranes – SCC’s 600-tonne crawler and a 280-tonne mobile – took part in some of the heaviest lifts ever undertaken on a construction project here, including that of removing Alice’s 400 tonne main drive from the southern access sump.

And all within 20 metres of buildings in this urban setting.

The Herrenknect machine, manufactured at the company’s facility in China, and reported to have cost $55 million to build and transport

here, has been a star of the show at the project, which will complete the Western Ring Route when it is opened to traffic in a year’s time.

Designed and built specifically for Waterview, and with a cutting head measuring over 14 metres, it is the 10th largest ever used in the world. During its journey beneath Auckland, the earth pressure balance TBM placed 24,040 tunnel lining segments (10 to each of the 2404 rings) and excavated 800,000 cubic metres of spoil. It is believed to be the first

After the massive tunnels were bored and formed, SCC started the carefully planned, five-month job of dismantling the 87 metre long, 3400 tonne tunnel boring machine into its major components.

FEBRUARY 2016 19

CONTRACTOR PROJECT

Above and opposite: Rusty Rhodes (left), Smith Lift manager and Paul Brummitt, TBM mechanical supervisor.

The first stage of the process was to lift Alice’s rotating cutter head out of the Southern Approach Trench sump using a 600-tonne crane, with the assistance of a 300-tonne crane.

The remainder of Alice’s parts including a shield, main drive, screw conveyor and tail skin followed.

20 www.contractormag.co.nz

TBM to be manufactured with an independent self-propelled culvert gantry. Designed to operate some 200 metres behind the TBM, the arrangement represents a departure from typical practice.

Precast steel fibre reinforced concrete segments measuring two metres by 450mm thick were supplied to the project by a sub-alliance with Wilson Tunnelling from a fabrication facility at East Tamaki. Each ring set featured nine segments, plus a crown key. In addition there were some 2400 inverted U-shaped precast concrete culverts, measuring two metres long by 3.7 metres wide by 2.2 metres high, cast to run under the road deck. Stefan Hanke, Alliance construction director says it was a ‘neat solution’ to keeping up productivity.

After the massive tunnels were bored and formed, SCC started the carefully planned, five-month job of dismantling the 87 metre long, 3400 tonne tunnel boring machine into its

major components.

“Waterview has been a hugely significant project for Smith Crane and Construction, and has really put us on the map,” says Jason.

SCC’s presence on the site has spanned three years. The firm’s work included assembling and craning Alice into position, and turning her around once the first tunnel was complete so she could start boring the second tunnel, separated by a 15 metre gap.

“We have been working on and off on this project since March 2013, with up to 10 cranes and 30 staff involved at any one time. It is our biggest project to date in terms of value.”

The first stage of the process was to lift Alice’s rotating cutter head out of the Southern Approach Trench sump using a 600-tonne crane, with the assistance of a 300-tonne crane. The remainder of Alice’s parts including a shield, main drive, screw conveyor and tail skin followed. The parts are due to be shipped back to Herrenknecht.

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FEBRUARY 2016 21

CONTRACTOR PROJECT

Biggest in New Zealand Recently a familiar sight on the Auckland skyline, the Liebherr LR1280 and Demag CC2800 worked together to remove the cutting head from the TBM. “They’re the biggest cranes in New Zealand,” Jason told Contractor. In addition to the main drive (400-tonne) and cutting head (350-tonne) lifts, SCC has been involved in smaller day-today lifts on the project.

Understandably, dismantling Alice has called for considerable planning.

“For the bigger lifts, we’d prepared some 5060 method statements, to be absolutely sure 22 www.contractormag.co.nz

everything went exactly according to plan,” says Jason.

Even the logistics of getting the bigger cranes to the site required major planning.

Establishing the Demag at the site required 43 loads to be transported by road.

“There was 550-tonnes of counterweight alone, in addition to boom and other components,” he adds.

The tunnel team recently completed the excavation of the last of the 16 cross passages that connect the twin three-lane motorway tunnels.

The cross passages are some 11 metres long and will be used to evacuate people if there

is an emergency underground, and to house equipment to operate the tunnels.

Although excavation is complete there are still many months of work ahead – constructing the road surface, installing concrete linings, lights, drains, the deluge safety system and signage as well as painting the ceilings and walls – before the tunnels can be commissioned for the planned opening in early 2017.

“Dismantling Alice has taken a lot of work and planning,” says the Transport Agency’s highway manager, Brett Gliddon.

“The same ingenuity and accuracy that is the hallmark of the Waterview Connection is being used to remove the machine.

“It’s a very tight fit to get some of these pieces out, sometimes there’s been as little as 200mm to spare.”

The giant 322 tonne cutterhead that carved through underground spoil to drill the tunnels has now been lifted out of the trench. Six hydraulic jacks

were used to push the cutterhead off the 184 studs that held it in place on the main drive of the TBM. “Lots of people have asked us whether we can use Alice for other tunnelling projects, but each TBM is built specifically for one job. It’s designed to take into account the size of the tunnel and the type of material it’s boring through, which are individual for each project,” says Gliddon.

The Waterview Connection completes Auckland’s Western Ring Route, a 48 kilometre alternative route to SH1. It will link Manukau, Auckland, Waitakere and the North Shore, improving network resilience, travel time reliability and bus shoulder lanes as well as upgrading cycleway and pedestrian facilities. It includes construction of twin three-lane tunnels – the longest road tunnels in the country – and a giant interchange to connect Auckland’s Northwestern and Southwestern Motorways (State Highways 16 and 20).

Who’s who at Waterview The Waterview Connection project is being delivered by the Well-Connected Alliance which includes the Transport Agency, Fletcher Construction, McConnell Dowell, Parsons Brinckerhoff, Beca Infrastructure, Tonkin & Taylor and Japanese construction company Obayashi Corporation. Suballiance partners are Auckland-based Wilson Tunnelling and Spanish tunnel controls specialists SICE. “To have completed so much tunnelling successfully and by the end of the year (2015) and without any major issues is a credit to the Well-Connected Alliance’s tunnel team,” says NZTA’s Brett Gliddon.

Tunnel construction manager, Chris Ashton says it has been a real team effort.

“It is a great achievement from everyone that there has been no discernible settlement or effect on people living above the tunnels. These cross passages have been built to world class standards with a very good safety record as well.”

FEBRUARY 2016 23

CONTRACTOR TRAINING

Well earned industry accolades Certified Civil Tradespeople honoured The country’s first Certified Civil Tradespeople were honoured at the Civil Trades national launch at Parliament in early December. The group were part of a pilot programme for the Civil Trades Recognition of Current Competence (RCC) pathway. Here we meet the first two past the post – Matt Paget of Higgins Contractors and Ray Scott of McConnell Dowell.

“For a long time our industry and company has needed a qualification that recognises the very important trade skills our staff bring to our construction and maintenance activities.”

Matt Paget, Higgins Contractors Matt is the first person in New Zealand to become Civil Trades Certified. He is certified in Road Construction and Maintenance, with endorsements in Earthworks, Road Construction and Concrete (Non-Structural).

Matt has been working in the Civil Infrastructure Industry since he was 16.

He started out as a labourer, before progressing to a machine operator, then foreman/supervisor. Today, he is an operations manager at Higgins Contractors, and is responsible for the allocation of labour and plant to all jobs undertaken by the Bay of Plenty branch.

24 www.contractormag.co.nz

Although Matt left school without a formal qualification, he had a good attitude and a strong work ethic. He says the secret to his success is from taking opportunities, respecting and learning from others, and being a part of a great industry. Matt is a firm believer of leading by example and he will never make someone do something that he isn’t prepared to do himself.

He was attracted to the industry by the physical nature of the job, the machinery, and the opportunity to work in different places. The ability to move up the ranks through good hard work was also a big drawcard. He has been involved in a wide variety of projects large and small, ranging from State Highway bypasses, major subdivision developments, asphalt and chipsealing, site works and drainage to the smaller jobs such as carparks, driveways and traffic management.

Matt’s passion shows through his enthusiasm and dedication in providing leadership and guidance to foster the culture for young people to grow and develop within the industry. Skills and experience Matt has earned throughout

the years have seen him become a qualified and reliable Civil Infrastructure Industry trainer and assessor.

He feels that Civil Trades will make further education more appealing to infrastructure tradespeople. Getting their practical skills assessed will finally allow them to be recognised as specialists in the field.

Higgins Group support manager John Bryant has been instrumental in the development of Civil Trades.

“For a long time our industry and company has needed a qualification that recognises the very important trade skills our staff bring to our construction and maintenance activities,” he says.

“For our valuable experienced staff like Matt it is great that we can provide a robust qualification that gives them the recognition they deserve.

“I am also excited that with the Civil Trades regime we will be able to offer a clear career path for our staff in the future and I know our qualified tradespeople like Matt will be championing our staff, young and old to achieve this qualification and recognition in the future.”

Ray Scott, McConnell Dowell Ray Scott is the second to become Civil Trades Certified in Road Construction and Maintenance, endorsed in Concrete (Non-Structural).

Ray is a construction supervisor working on the Great North Road Interchange as part of the Waterview Connection project.

With 42 years of experience, he has worked on a huge variety of jobs during his career. He is passionate about the civil infrastructure industry and feels very proud to be part of it. He says that seeing a finished bridge or structure that you have built from the ground

up, looking like the concept drawing, is extremely satisfying.

Despite leaving school in 1973, Ray says he is still learning, and always looking forward to the next challenge and to gaining new skills. He strongly believes that you are never too old to start learning and feels that a lot of hard work can go a long way.

He also believes that Civil Trades will help to address the current skills shortage in the industry, and help to increase the number of competent, qualified, tradespeople in the future.

Young people wanting to get into this industry need to be given a chance, he says, just like he was when he was young and keen. He says that it is a long road but also very satisfying knowing you are earning and learning a trade at the same time.

McConnell Dowell is hugely supportive of the Civil Trades regime.

“Tradespeople play a vital role in our industry, and the value of their skill and experience can’t be underestimated,” says managing director Roger McRae. “We’re also conscious of the acute shortage of competent people in the industry, and the forecasted need for them in the upcoming pipeline of work.

This trade certification is a welcome step towards filling that gap, retaining skilled people, and offering those tradespeople much-deserved recognition.”

Above: The first Certified Civil Tradespeople pictured at the Civil Trades launch event at Parliament: Joshua Rapihana, Downer NZ, Waiheke Island; Barry Bowen, City Care, Christchurch; Wayne Smith, HEB Construction, Auckland; Hon Louise Upston MP; Kenny Brown, Fulton Hogan, Christchurch; Hon Stephen Joyce MP; Matt Paget, Higgins Contractors, Mount Maunganui; Scott McKenzie, Ching Contracting, Nelson; Robert Matete, Downer NZ, Gisborne; Billy West, Fulton Hogan, Northland; Ray Scott, McConnell Dowell, Auckland; Che Gallagher, Fletcher Construction, Christchurch; Ross McLaren, Andrew Haulage, Balclutha; Joe Fraser, Goodman Contractors, Waikanae; Wes Jefferys, City Care, Christchurch; and Richard Leach, Higgins Contractors, Wellington.

FEBRUARY 2016 25

CONTRACTOR PROJECT

Drilling under the MIGHTY WAIKATO Directional or slant drilling is relatively new and a technology that has increased in accuracy over the past decade and has been driven by the oil and minerals sectors.

THE PRACTICE IS NOW common and has become

an essential tool in contracting areas such as trenching of underground utilities including telephone, power and water.

Currently, directional drilling can go as deep as 30 metres in this country without requiring expertise to be brought in from Australia, says Neil Vanner at Universal Underground, a Kiwi directional drilling specialist company.

Over many years slant drilling technology was developed for the oil well-drilling industry to directionally steer the vertical drill head into oil rich seams deep below ground.

It was soon realised that this technology could be adapted in a smaller scale for the infrastructure industry. The first very basic Horizontal Directional Drill (HDD) rig landed in New Zealand in 1989 and was put to work in Te Puke installing gas pipe.

Previous to this, trenchless technology for 26 www.contractormag.co.nz

small infrastructure involved rod pushers and pneumatic moles (called “thrusting”, a term still heard today to wrongly describe HDD).

Directional drilling here has progressed in leaps and bounds from these early days, when the old horizontal drills required the operator to walk up and down the machine as new rods were loaded by hand. The electronics developed to locate the drill head were very primitive and only worked to a shallow depth with very limited telemetry information.

Twenty-five years on it’s easy to see how HDD has revolutionised the underground infrastructure industry in this country. Pipe in ground has become quick and cheap and, in many cases, hidden from public view drilling hundreds of metres underground, and very accurately. No natural or manmade obstacle is an issue any more, and pipe can be installed anywhere, and through anything.

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How it works Three components are measured at any given point in a wellbore in order to determine its position: the depth of the point along the course of the borehole (measured depth), the inclination at the point, and the magnetic azimuth at the point. These three components combined are referred to as a ‘survey’.

Several companies have developed tools that allow directional control while rotating. These tools are referred to as rotary steerable systems (RSS), which is a technology that has made access and directional control possible in previously inaccessible or uncontrollable formations.

1. UUL utilises its largest directional drilling rig for the river crossing.

2. Pipe being drawn back under the river.

3. The pipe was pulled back under the river over a six-hour period.

4. Pilot hole drill head exited the ground precisely on target.

5. Maori pre-start blessing of the site and drill rig.

6. The towing head was removed and the pipeline quickly filled with water to remove the 14 metre external head on the pipe.

FEBRUARY 2016 27

CONTRACTOR PROJECT

Two decades ago installing a pipeline under the Waikato River was considered high risk, however HDD technology has changed that.

28 www.contractormag.co.nz

Installing a watermain under the Waikato River The Waikato District Council’s Central District Water Supply Scheme includes a bulk watermain connection between Huntly and Ngaruawahia.

In the old days, such watermains were linked under road or rail bridge crossings, but this has become more complicated as the ownership of such infrastructure changes.

Two decades ago installing a pipeline under the Waikato River was considered high risk, however HDD technology has changed that.

The first stage of this project involved undergrounding a section from Ngaruawahia to Hopuhopu with a 280mm diameter polyethylene pipeline. For archaeological and environmental reasons the entire length was installed by HDD and this included a drill shot beneath the Waikato River. This kept the new pipeline off bridges, improved security, and provided a considerable cost saving.

The HDD project work was carried out by Universal Underground (UUL), a horizontal directional drilling company from Cambridge, which undertook the work as a subcontractor to Spartan Construction from Hamilton.

Tim Mitchell, onsite project manager, drill rig operator and co-owner of UUL, has undertaken a number of drill crossings under the Waikato River. Knowledge and experience counts for a lot when so much is at stake, he says.

“There’s no digging up the drill head if things go wrong.”

The council required the pipe to be placed

eight metres below the deepest part of the river. This did not allow traditional drill head tracking and a special transmitter that senses the earth’s magnetic field with an electronic compass was used. This eliminated the requirement to track the head above ground to maintain direction. The in-ground transmitter sent the location information to the drill rig cockpit display via a wire running up inside the drill string. The compass cannot have steel closer than 4.5 metres so the compass housing and rods either side are always manufactured from non-metallic material.

An accurate surveyed long section was undertaken of the riverbed, says Tim, and this information was fed into a computer bore planner along with the underground services to be avoided. The bore planner calculated every millimetre of the crossing and ensured all the targets were met.

Once the pilot hole was completed the drill head and electronic location equipment were removed. A reamer was attached with a swivel and trailing drill rods were then attached to ensure the tunnel was not lost in case of a collapse. On completion of the reaming, the reamer was brought back across the river and reattached to the trailing drill string with the PE pipe connected on behind.

“This project was a textbook river crossing with no effect on the environment,” says Tim. “The impact to surrounding residences was minimal and all objectives were achieved.

From start to finish the river crossing was completed in eight days.”

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CONTRACTOR PROFILE

Dad’s idea

– realised by his son The idea of bundling performance contracts had an interesting beginning – it started with a Hutt Valley contractor and his son. By ALAN TITCHALL.

TODAY’S CLIENT-CONTRACTOR tools of asset management, performance-based contracts, and quality assurance had a unique start with Snow Olsen, of Hutt Valley-based contractor Olsen’s Civil Works (a company that operated between 1951 and 1985).

It’s a long story, as told by that contractor’s son, Chris Olsen, so make yourself comfortable and read on.

Specialising in roading, subdivisions, water supply, gas pipelines, power and phone cabling, and sewage, Snow Olsen was an innovative contractor in his day, having been one of the first to use trenchless technology through pipe ‘jacking’ underneath railway embankments and motorways in New Zealand in the early 1970s. He also specialised in constructing pipelines under large rivers and was very involved in industry politics being Wellington branch chairman of the Contractors Federation in the mid-1970s.

His son Chris started working part-time with his father at the age of 16 and a few years later, was sent to university.

“Dad believed future contracting companies needed to be run by engineers. I didn’t necessarily want to be a civil engineer but, in the end, I did get my degree [Hons] after my NZCE,” says Chris.

“He also said I had to go and work with the client [Lower Hutt City Council] for three or four years to understand how they think. Then I would be well positioned to take the family business to the next level.”

Chris never did take over the family business – he stayed in local government, first with the Lower Hutt City Council, then Wellington City Council, Transit NZ, Transfund NZ and, finally, Roading NZ, putting his father’s theories to work.

“One of the things Dad had taught me was about the ‘waste’ when local authorities had jobs designed that weren’t practical.

This often meant contractors were building things that weren’t optimal or efficient. Things could be done smarter.

“When I took over as manager of the Wellington City Council roading workforce in the mid-1980s [at the age of 30] I focused on making a difference by doing things better – both in terms of the workforce’s productivity and also by being one of the first in the country to embrace ‘asset management’.

“Up to this point local government and the Ministry of Works had done roading work themselves, before the government legislated and required this work to be contracted out. We set about disestablishing the council’s roading workforce – about 150 workers – and my team of five engineers developed and let 30 www.contractormag.co.nz

30 contracts to outside contractors over 18 months.

“It only took six months to develop a road maintenance competitive contracting market in Wellington among existing contractors, whom I knew through my dad.

“Around this time we also let the first performance-based contract in roading [for chip sealing].

Previously, a council engineer would do the seal design and specs, and the contractor would simply carry out the build. In 1991 we let the first ‘design and build’ contract for chip seal contracting in New Zealand – it was a three-year contract and, because it was so new, we had to work very closely with the contractor – just like a partnership. A lot of what we learnt was used in Transit’s [the transport agency at the time] first P17 specification for performance-based chip sealing.

“As time went by we ‘bundled’ those 30 contracts [performance-based where possible] to get economies of scale and make it easier for everyone. We also made them up to three years in length rather than annual, which made it easier again for us and helped the contractors plan.”

This new model for council work also helped to provide ‘facts’ around political issues and controversy. Sue Kedgley, a Greens’ councillor at Wellington City at the time, was not happy that contractors were using chemical weed control such as Roundup and pushed for the use of ‘hot water’ non-toxic weed control.

“We didn’t know whether it would work, or what it would cost, so I developed a performance-based contract for weed control and split the city in half – one half using chemical control and the other half hot water,” Chris recalls.

“We went through the bidding process and after a year I had to report the price differences and whether the hot water method worked.

“It worked, but the cost of the hot water treatment worked out 70 percent more. I thought – how do I decide if this is acceptable? I commissioned a ‘willingness to pay’ survey among our ratepayers asking if they were prepared to pay a range of percentage increases for non-chemical control. Despite 80 percent of ratepayers in an original council’s survey wanting environmental solutions only two percent were prepared to pay the extra 70 percent for non-chemical spraying.

“You can imagine what my report said? Supported by Kedgley, the media got involved. Although I had training to handle a ‘Holmes’ interview when at Transit NZ, I really learnt to handle the media during some fairly adversarial times at Wellington city.”

“One of the things Dad had taught me was about the ‘waste’ when local authorities had jobs designed that weren’t practical. This often meant contractors were building things that weren’t optimal or efficient.

Things could be done smarter.”

Another learning curve was dealing with the contracting industry when Wellington City Council sold its asphalt plant at in Ngauranga Gorge (Kiwi Point) to Bitumix around 1990.

“The plant badly needed capital for upgrading so it was a necessary sale, but part of the agreement with Bitumix stated that any contractors working within Wellington City boundaries had to use asphalt from Kiwi Point for the next 10 years.

“You can imagine how that went down among contractors at the time.”

Chris says although he had obtained special dispensation from Transit, the move proved so contentious among roading contractors that he decided to personally explain the situation via a meeting with John Dawson, the chief executive of the Pavement & Bitumen Contractor’s Association (the forerunner to Roading NZ).

“I also approached Transit and requested the person who approved the variation to accompany me to this meeting, but they sent their communications person instead.

“We met with John Dawson in this very meeting room [our interview was conducted at Margan House, which used to house both the PBCA and Roading NZ] and I was so surprised that he was so accepting over the decision.

“I realised then, that the association as well as Transit had helped us. It gave me an appreciation of how an industry association can work to resolve issues.”

Transit days In the middle of the chemical versus hot water spray episode at Wellington City Council, Chris was recruited into Transit as its national programming and funding manager for roading and passenger transport.

“Robin Dunlop who ran Transit decided, in 1994, to set up a new division called ‘programming and funding’ [these days, within the NZTA, it’s called ‘planning and investment’].

“Robin set up this division to ensure state highways and local authorities were funded equally and transparently. I got the divisional manager’s job.

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CONTRACTOR PROFILE

“My team and I put together the Programme Funding Manual which rationalised the funding policy criteria for both state highways and local roads evenly and fairly so, from an engineer, I found myself an economist and policy manager which I really enjoyed.”

He also took his Dad’s notion that “contractors know how to do it best, practically” and applied this to bus operators to solve the problem of poor quality bus services through the country.

Working by consensus with bus operators and regional councils he changed Transit procurement requirements (CPPs) to bring quality into the tender evaluation process and to provide financial incentives for innovation.

The Transfund years About a year after Chris joined Transit the government legislated to set up a new funding agency called Transfund NZ – based on the Funder/Provider Split principle. This was the same principle that suggests, for economic efficiency, contractors carry out local authority physical work rather than councils. Transit became Highways (the two entities were merged as the current NZTA about 10 years ago).

Chris Olsen carried on as programme and funding manager at the new Transfund, while the top job went to a National Party man. Chris says that throughout his entire career he has been apolitical, which has enabled him to work with ministers from both sides of the House.

Remembering his father’s words “whatever you were doing could be done smarter and better”, Chris says he led a working group of Transfund staff, top local authority asset managers and a consultant to build, for the first time, a maintenance funding model to be applied to each local authority based on the drivers of road maintenance and basic levels of service.

“My regional staff worked ‘collaboratively’ with local authorities, with minimal negativity or banging of tables.

“I remember every local authority in the South Island asked for less money than they had the year before, and we moved $30-$40 million of saved funding to where it was needed.

“In the late 1990s I made asset management planning a condition of this funding. And, much to Transit’s horror, I introduced ‘strategic benefits’ into the Project Evaluation Manual. The agency didn’t want them in because of its focus on ‘efficiency’ (benefit cost analysis), but I could see this was the way of the future.

“Transit argued that you couldn’t quantify ‘strategic benefits’.

I said, if we put it into the manual the concept would develop over the years and, 10 years later, what is the current NZTA funding criteria? Strategic fit, effectiveness and efficiency of the solution.”

The Roading NZ years Mid 2000 Chris left Transfund to become chief executive of the Pavement and Bitumen Contractor’s Association. Three years later Roading New Zealand was formed from the old PBCA with Chris as its CEO. “The new association was formed to create a political lobby group with the aim of moving the contracting sector forward and relating more closely with the client.”

Chris was joined by Lyn Kuckenbecker (now accounts manager at CCNZ), and Alan Stevens (now CCNZ technical manager).

32 www.contractormag.co.nz

One of his first jobs was to capitalise on the old PBCA’s technical strength with new committees and help develop performance-based specifications for Transit.

“This went back to my Dad’s old comment that ‘contractors often know how to do it best, practically’, and our whole philosophy was performance based. The client [Transit] specified ‘what it’ required and the contractor bid according to ‘how’ they would do it – using quality systems as assurance for the client.

“And it’s why, more recently, Roading NZ supported the NZTA performance based NOCs and their bundling.”

Asked about Roading NZ’s greatest achievements, Chris quickly brings up the 2004 ‘slow down around road works’ campaign. Downer was the lead member of this initiative.

“We got $1.6 million from the Road Safety Trust, used it on a huge media campaign, and it worked big time. Similarly, the Industry Self-Governance ‘Operate Safe’ model of 2005 produced a huge change in health and safety culture. NZCF developed QUEST in response to Operate Safe and together these changed the culture of the contracting sector.”

Through his work on the Operate Safe initiative, Chris was made a fellow of the Institution of Professional Engineers in NZ. One of Roading NZ’s other big achievements, he says, was encouraging the government at the time to increase the government spend on roading infrastructure.

“In 2003 the NZ road construction budget was just $300 million. The government wanted to ramp up this spend, but believed the contracting industry didn’t have the capacity to deliver. Roading NZ brought together industry leaders and government department chiefs at a large summit held at Westpac Stadium.

“We settled on five goals and 40 action points to grow the contracting industry, with half of these to be initiated by government departments to create the right commercial environment.

“Then we had a meeting in Manukau City, hosted by Manukau’s mayor Sir Barry Curtis, with five government ministers who, within two hours, had ticked off and approved funding for all our plans.

“Our success was in following a policy process. I knew from being on the government side of things, this was the way to get things over the line.

“Two years later, the roading construction budget was $1 billion and employees in the roading sector had increased 40 percent, from 10,000 to 14,000, and every roading job put out had at least three bids for it.”

Although every man and his shovel has been involved with the new Trade Certification regime (launched in December last year), Chris says he was there at the very start.

“I knew back in my Wellington Council days that I had people working for me who had higher skills than those with drainlaying tickets, and always wanted trade certification for our sector.

“Some years ago I convinced the Roading NZ board of the idea. The Contractors’ Federation came on board and I became the chair of the establishment board that designed the regime.”

Chris moved on from the role of Roading NZ chief in August 2014 when it merged with the Contractors’ Federation to form Civil Contractors NZ. “I was really looking forward to a rest and at least a month off.

“Two days after I finished work I received a number of phone calls for consulting work and I have been busy ever since.

“At least I did get a week in Rarotonga.”

CONTRACTOR TECHNOLOGY

Smart Shelter

equals smart business Ask three different people in the construction sector what comes to mind when they think of Downer and they’ll typically tell you the same three things: roads, roads and more roads. However, as its recent Smart Shelter initiative indicates, the contracting company’s future is clearly paved in more than one direction. By PATRICK WATSON.

IN ITS MOST BASIC FORM, the Smart Shelter is an innovative, fibre-connected bus shelter with an interactive digital display interface. The interface, which appears as an enormous tablet, connects people to the local transport system, as well as local council events and places of interest.

Cleverly located on modular gear racks on top of the bus shelter is the technology that brings the fibre and power to this ‘smart city hub’. This creates the opportunity for councils to offer telecommunications small cell real-estate, which in turn allows for better mobile coverage and improved mobile services, both locally and across the city. Taken together, this design makes for a unique user-experience and the technological facilitation of all the positive offerings that a smart city can possibly provide.

The first Smart Shelter build was delivered in Auckland as a prototype connected digital interface for the public transport user. It boasted weather information, a digital journey planner, advertising and even an interactive game. To top things off, the shelter hosted a CCTV camera that reassured people it’s a safe place to be.

Should Smart Shelters be installed around the country the scale of services able to be provided would only increase. Not only does this make for a smarter and more connected world, but it makes for a good business case too.

The shelter was developed out of the Chorus Innovation Lab in Auckland and is a collaboration between Downer, Alcatel34 www.contractormag.co.nz

Lucent, Solta, Deisgnbrand, Samsung and Schneider-Electric.

Downer’s main role in the consortium was as lead systems manager and project manager.

For industry onlookers, it shows that Downer won’t be satisfied merely maintaining a more digitally connected world. It wants to play a part in building it too.

One of the key people behind the Smart Shelter is Downer’s infrastructure services GM of business development Murray Robertson.

He explains that Downer’s move into the digital space is a planned one – the result of the convergence that’s happening inside industry, infrastructure and information technology. He is a strong advocate for collaborative contracting and believes that companies like Downer will play an ever-increasing role in supporting connected infrastructure solutions.

Downer is already part of the ng Connect ecosystem – which is funded by Alcatel-Lucent and regularly brings tech players together for planned ideation sessions. As such, Murray says the company had already been conceptualising what role it might be able to play in a future made up of smart cities.

On the one hand, it could be argued that maintaining council assets is going to become a lot easier because of the technology now available. On the other hand, unless you’re involved in building the technology and working collaboratively to deliver smart solutions, it could potentially be a lot harder – especially

“It is great to test ideas in the lab but to deliver a smart shelter in the live environment helped us learn a lot about the reality of how it would work.”

if you don’t keep ahead of the ICT curve and have trained staff on board to keep you competitive.

“We already provide excellent road construction and maintenance to local authorities, but we realise the contracts are becoming more complex and ICT is an integral element in network management,” Murray says.

“The strategic assets the councils are responsible for will evolve as we enter a more connected environment. That’s the impetus to get involved. We need to position ourselves to add value in the connected world. Plus, building the Smart Shelter was an exciting project to manage!

“The consortium behind the Smart Shelter said ‘Let’s just build one of these things, largely out of our day job.’

“The whole process took about six months. While we were developing the shelter in the Chorus Lab we recognised an opportunity to tender for a live connected bus shelter prototype in Auckland. This was an innovative and existing project for Downer and our ng Connect partners. It is great to test ideas in the lab but to deliver a smart shelter in the live environment helped us learn a lot about the reality of how it would work.”

The Smart Shelter has built-in background analytics, surveys and screen feedback.

Murray says getting user feedback is paramount to success and all the quantitative and qualitative data they’re getting FEBRUARY 2016 35

CONTRACTOR TECHNOLOGY

Murray admits there are a lot of moving parts and Downer is just one piece of the puzzle.

However, he is optimistic that the consortium’s combined expertise will take the prototype to new heights and that obvious returns on investments will be found. from customers will inform future builds.

Vice president of global market development at AlcatelLucent Jason Collins says, apart from the actual technology, the big exciting question is: “What is the good business model around it?”

It’s a question many might well ask. However, moving beyond the initial full-sized and operational prototype, the Smart Shelter will likely lead to other things that would make for a robust and fiscally-sensible business case – digital advertising and telco hubs being the obvious routes forward.

Murray admits there are a lot of moving parts and Downer is just one piece of the puzzle. However, he is optimistic that the consortium’s combined expertise will take the prototype to new heights and that obvious returns on investments will be found.

“If you can bring fibre to these hubs, the telco retailers will recognise the value and want to be involved. The applications will be widespread and there is an opportunity here for councils to see a return on their assets,” he explains.

“In fact, we don’t even look at these as bus shelters, but as smart city hubs. [As we move forward] they could help councils plan for all sorts of things, such as providing wifi to local communities, and connecting council infrastructure such as 36 www.contractormag.co.nz

street lights, water networks and weather sensor data. The value to support wider local authority networks is significant.”

Alcatel-Lucent’s business development director Shaun Graham agrees.

“You take a bus shelter that is currently a cost to the council.

That becomes a revenue generating scheme. As you increase the services out to the city, that’s fantastic,” he says.

Murray says the ng Connect team are proactively working with councils to share their innovation and develop ways and means of implementing smart city solutions.

He says the best way for this to happen will be to move concepts off boardroom tables and into the live environment.

He believes this ‘deploy or die’ mentality will be essential for smart city success and wants to bring innovation into the public arena so that all players can share and learn from one another.

“In New Zealand we are fortunate to have forward-thinking councils, a smart and agile private sector and a can-do attitude to make a difference,” he says.

“The infrastructure of the future will be different, it will be complex and it will require a new mindset. That’s a great challenge for us all. We’re a place where future ideas can be built and Downer wants to be part of that.”

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FEBRUARY 2016 37

CONTRACTOR TECHNOLOGY

Warren Green, Vinsi Partners

Specialists meet over corrosion

that should perform better than another depending on the job it has to do.

Ways to protect the infrastructure are constantly evolving, and delegates heard about advances in paint coatings and how critical surface preparation is when coating or re-coating an item. Where an item is situated, its function, and how long it is expected to perform will influence coating selection. And it is a dream of specialist coating companies that they’ll be able to produce a coating to perform in the harshest conditions, be easy to apply, and able to cope with a poorer, or less clean surface, on which it would be applied.

“Unfortunately, that’s a long way away,” says Miles Bruckhurst, of Norway’s Jotun A/S. “Coating improvements are made in such small, incremental stages that must be exhaustively tested before release, and it would be impossible to achieve a major breakthrough in a single step.”

He points out that asset owners often see the capital cost of an effective coating system and its ongoing maintenance as being “too expensive”, yet surface preparation, the coatings themselves and labour are likely to represent no more than 2.5 percent of the cost of a new project.

Warren Green of Vinsi Partners agrees. “Asset owners need pragmatic solutions, because once corrosion enters the body of a structure, more complex and expensive remedies are required. That means concrete and other structural materials need to be protected as far as possible from the very first, and using coatings to protect them can be very cost effective.”

Another cost-effective protective mechanism is cathodic protection, in which an electrical current converts anodes to cathodes. This method is frequently used to extend the service life of pipelines, storage tanks, steel in concrete and more.

Markus Buchler, the CEO of the Swiss Society for Corrosion Protection, discussed the mechanisms involved in this type of protection and explained a new way to assess and

Planning to manage corrosion in concrete, steel and other materials needs to start from day one of any structure’s lifecycle says the Australasian Corrosion Association, which recently hosted its 55th conference in Adelaide. By CORRIE COOK.

DELEGATES AND SPEAKERS at the Corrosion & Prevention 2015

conference included specialists in coatings and materials, and came from around the world to discuss the latest research and case studies into ways of minimising the rate of corrosion across infrastructure and other assets.

The Australasian Corrosion Association (ACA) is a not-forprofit, membership association established in 1955 with the aim of reducing the impact of corrosion. It provides an expert knowledge base and disseminates information on corrosion and its control or prevention through training, seminars, conferences, publications and other activities across New Zealand and Australia.

Materials chosen for infrastructure can include a range of metals, alloys, stainless steel, concrete, or combinations. Each material specified can be produced in a range of compositions 38 www.contractormag.co.nz

Markus Buchler, CEO, Swiss Society for Corrosion Protection

possibly predict the relative health of cathodically protected structures.

Since 1967, it’s been known that cathodic protection forms a delicate, passive film over the structure, which can be easily disrupted. Microscopic defects could allow such disruptions to begin the corrosion process. As the demand increases for products formed at very high temperatures, chemical concentrations in industrial processes, and new pipeline materials – we are also faced with new corrosion triggers and mechanisms. Buchler’s team is helping to predict new protection models.

With an average 10 percent increase in axle loadings every decade, bridges can soon exceed their design specifications says conference convenor Alan Bird, who is also director of Marine and Civil Maintenance in NSW. Safety considerations – and the need to extend the asset’s life as far as possible – mean additional ways to support bridge piles must be found so they can cope with increased traffic and axle weights.

Retrofitting external strengthening devices using carbon fibre can extend their life, but asset owners also need to be aware of the need to protect their structures against cracking which provides greater opportunities for corrosion to start even more rapidly than expected, he says.

Miles Bruckhurst, Jotun A/S, Norway

• ACA’s Corrosion & Prevention 2016 conference will be held in Auckland from November 13-16, 2016, bringing together researchers and practitioners who combat corrosion every day. For further information go to www.corrosion.com.au.

FEBRUARY 2016 39

CONTRACTOR LEGAL

Voidable preferences – a contractor’s view

A precis presentation by DON TILBROOK, based on a voidable preferences seminar late last year.

WHEN I FIRST HEARD that the Contractors’ Federation (now Civil Contractors NZ) was supporting an action in the Supreme Court regarding voidable preferences, my first thought was some scepticism. Why was this a special case?

I knew that the voidable preference clawback ability for liquidators is not new, and is there to provide fairness to all creditors in the event of a company going into liquidation.

I also have personal experience in this process and have been a beneficiary of a clawback as an unsecured creditor (more about this later).

The case that the association was supporting was for about $15,000, which is worth complaining about but not a huge amount in the overall scheme of things. I since understand Hiway Stabilizers’ reasoning behind the action wasn’t so much financial, but challenging the whole voidable preferences process as wrong.

I still kept thinking; what had changed in the law that makes it worth fighting? The best answer I got was that the law changed here in 2007 and liquidators could more easily clawback payments made up to two years before liquidation.

In addition, Hiway Stabilizers is an association member and it’s good to support members, especially if the support has knock-on benefits to other members.

So the following is my understanding of the insolvency law behind the case, why the construction industry in particular felt so aggrieved and why the Contractors’ Federation supported the Supreme Court action.

The basics for contractors Before looking at voidable preference recovery, the liquidator has to satisfy a few criteria but (without going into detail) this is not hard to do. The most important evidence is that the company is ‘insolvent’ at the time the payment was made to a contractor.

When getting a clawback demand from a liquidator, the creditor has three defences. First, it was acting in good faith (that is without an intention to gain a preference). Second, it did not have reasonable grounds for believing the company was insolvent when the payment was made. Note that being short-paid and late-paid are long-standing features of the construction industry and not necessarily reasons for thinking the company is insolvent.

The third defence has been a problem for contractors and others in the construction industry and relates to the giving of ‘value’ in exchange for payment and (importantly) the time 40 www.contractormag.co.nz

at which that value was given. In this respect, from what I’ve gathered, the Australian law (on which ours is based) is written around the wording that the creditor has to have “given value before receiving payment”. This seems entirely reasonable.

However, our law, as applied since late 2007 (apparently to bring us into line with Australia), is “give value when receiving payment” and this subtle difference has been seized upon by liquidators in the past. It is not the norm in the construction industry to receive payment at the exact time value is given.

Indeed, in the case of retentions release, this can occur a long time after the value is given.

The clawback regime is very rarely of benefit to unsecured creditors at the bottom of the priority list, so who gets the money that the liquidators claw back? Is it altruistically spread among all the deserving cases of creditors who in any event are going to lose money? Well no. Here’s the order of priority.

Liquidators are in fact top of the pecking order in the payments and this should come as no surprise. The very people who decide whether to enforce the clawback provisions are the first recipients of any money.

Next comes the ‘petitioning creditor’ costs of winding up the company – relatively minor; and then any wages for the last four months – a worthy recipient of any money clawed back, but if you worked as an hourly paid contractor, then you move further down the queue.

Then there’s the government – perhaps not worthy of sympathy, but then it makes the rules. Next are unsecured creditors who might be way down the list but are the source of most of the clawback. Shareholders are last in line, while secured creditors look after themselves.

The law as written since November 2007 was open to unfair interpretation and was taken advantage of by liquidators.

The Supreme Court, with the intention to bring it more in line with Australian law and practice, has clarified the position on the giving of value in respect of the three defences against a liquidator’s clawback. This should make it much harder for liquidators to claw back money from creditors. If there are any complaints from insolvency practitioners, then perhaps they can look at the Australian practice.

To a certain extent some liquidators have brought this situation upon themselves by pursuing easy targets and relying on an interpretation of the law that is clearly unreasonable in many cases. Now they have to work harder to clawback money.

However, a more intelligent response to avoid the pendulum swinging too far towards the unscrupulous company owner,

The construction industry is a special case for the “Giving Value” defence as it involves large amounts of money coming in and large amounts going out. This gives rise to a potentially large liability – this is not unique to the construction industry but a feature nonetheless.

Don Tilbrook

would be that a balance needs to be struck.

Unsecured creditors need to be given some measure of protection against companies paying out some creditors in preference to, for example, avoid personal guarantee problems later, or to pay out friends.

The construction industry is a special case for the “Giving Value” defence as it involves large amounts of money coming in and large amounts going out. This gives rise to a potentially large liability – this is not unique to the construction industry but a feature nonetheless. So the effects can be large. Not only does this make a significant loss for the contractor but also makes the contractor a tempting target for the liquidator.

Points to consider • Payment is usually on account and the contractors, as creditors, are often unsecured and again this is common to many parts of the commercial world.

• There can be large swings in claimed amounts because of, for example, quantity remeasure and variations, to name two common examples. This can result in payment being made well after the work was carried out.

• In the case of building companies, margins can be very small, three or four percent, say, so cash flow effects can be very significant.

• Many subcontractors are involved especially in the case of a building company failure.

• Specialist Trades Federation president Graham Burke is reported as saying there are more insolvencies in the construction sector than others – this may or may not be true but the above notes could explain this.

• It is very common, in fact usual, to have payments withheld, called retentions. These can be released well after the work has been carried out. In the case of a foundations subcontractor working on a multi-storey building the giving of value could be five years before the liquidation of a failed main contractor.

• You could argue that slow payment or part payment of accounts was a clear indication of the insolvency of the company so the liquidator could say that you knew that the company was insolvent. However both these actions are very common in the construction industry for reasons other than insolvency, such as financing cash flow.

Example of a clawback A personal example of a clawback in action occurred about 15 years ago and was related to work as a main contractor for a developer of a large residential subdivision.

This was before the Construction Contracts Act made it permissible to stop work if payment was not being made by the principal.

In this case, we completed our contract, but then refused to carry out work outside of the contract as we had not been paid by the developer. This additional work, necessary for the developer to obtain title for the sections, was carried out by another contractor. This enhanced the position of the primary secured lender.

We spent a considerable sum in winding up the developer’s company and several years later received a clawback of money from the second contractor via the Official Assignee. This second contractor should have known better in our opinion.

We paid all our suppliers and subcontractors in full, but the money clawed back barely covered the costs of winding up the company.

Why the Supreme Court got it right (contractor view) In our industry, how can we ever be expected to give value at the ‘time’ of payment? Get real. The 2007 law was open to unfair exploitation.

Is every payment received from any organisation other than government, a contingent liability for two years? Where is the logic in that?

So where to from here?

As I alluded to above, there needs to be a balance between the rights of the liquidator to claw back funds and the rights of the organisation subject to that clawback.

Surely it is correct that the third defence should reflect whether value had been given in exchange for the payment, rather than “at the time”. Liquidators need to look more carefully at the whole list of creditors, not just the easy targets.

...there needs to be a balance between the rights of the liquidator to claw back funds and the rights of the organisation subject to that clawback.

FEBRUARY 2016 41

CONTRACTOR COMMENT

Problem solvers PETER SILCOCK, CHIEF EXECUTIVE, CCNZ

HAPPY NEW YEAR! I hope you all had plenty of quality time with friends and family over the summer break.

Any contractor will tell you that business today is getting more and more complex. While that will not change in 2016, it is important as we launch into the new year that we don’t lose sight of the real prize.

For many of us that prize is the time we spend with family and friends and indulging in our favourite pastimes, whether it is reading, fishing or mountain-climbing. Whatever your passion is, make a point of planning some of that into your schedule for 2016.

Over recent years it has been both the pace of change and the disruptive nature of that change that has added complexity. It isn’t just about doing things faster and more efficiently it’s about being flexible, reinventing your business, thinking outside the square and responding to the market around you.

When I talk to contractors from around the country it is very obvious that each region is different and is influenced by many different factors. Changes in the levels and types of client investment drive demand and create both opportunities and threats.

In this environment it is often businesses that are adaptive and flexible that are the most successful. There are some big issues driving those changes in 2016 which we all need to

Planning for a successful future (well beyond 2016) is about understanding your environment and the changes and flow-on effects that will impact on your business. consider, such as the completion of the bulk of the Canterbury civil infrastructure rebuild work; the continued growth in the residential building in and around Auckland; and the rollout of NZTA’s increased capital expenditure programme (30 percent more than the previous three years).

The latest Pipeline Report from the Auckland Infrastructure and Procurement Group highlights that nationally the value of building and construction has grown by between nine percent and 12 percent a year over the past three years.

The civil construction market is dynamic. New clients and

types of work emerge and contractors look further afield rather than just chasing work in their traditional areas of operation. The awarding of key NZTA maintenance contracts can mean that we see new contractors establish in a region, or existing contractors withdraw and, with the wind-down of civil infrastructure work in Canterbury, some companies will be making a strategic withdrawal of resources which could have flow-on impacts in other regions.

Planning for a successful future (well beyond 2016) is about understanding your environment and the changes and flow-on effects that will impact on your business. It is about reading the trends and making moves at the right time and being prepared to change quickly.

While, overall, the amount of civil construction work available across the country has increased, the question is, do you have the right capabilities and resources in the right places to secure the work?

We are in a rapidly changing business environment and business owners and managers need to step up to the challenge. Successful contractors are practical people, they are problem solvers. Since starting with Civil Contractors in mid-2015 I have been very impressed by how resourceful, entrepreneurial and innovative contractors are out on-site and when talking to clients.

It is that same problem solving process and logic that now needs to be applied on a whole-of business scale. So, make some time for you and your key staff to step outside of your business, embrace change and look and think about things differently.

Taking a different approach – by developing or focusing on a particular specialist capability, by developing a new alliance or partnership that gives you scale or capability to take on different work, by looking at how your specialist knowledge or expertise can be leveraged and how you can enhance your staff capability through training or recruitment.

Talk with your key staff because they are problem solvers too, and will have some great ideas and insights that could give you that spark of an idea. Engage them in shaping their own future.

Remember that goals, including marking the achievements along the way and having a strong team of people around you ,are the things that will help get you through the challenges of 2016.

Oh, and of course remember the real prize!

Postal Address: PO Box 12013, Thorndon, Wellington 6144 Physical Address: Margan House, 21 Fitzherbert Terrace, Thorndon, Wellington 6011 Phone 0800 692 376

42 www.contractormag.co.nz

COMMENT CONTRACTOR

Quality focus for the Transport Agency TOMMY PARKER, GROUP MANAGER HIGHWAYS, NZTA

OF LATE, THE NZ TRANSPORT AGENCY has increased its efforts The completion of management plans and on quality – specifically, a focus on data quality and the quality of ensuring national consistency is proving a new pavements – to get better outcomes. continuing challenge, both to industry and We have been working to up the emphasis on data quality because if you don’t know where you’re at, it’s hard to determine ourselves, and this is an area where we may where you need to be. need to focus our efforts in the near future.

Good progress has been made in this area. We now have all of our networks loading maintenance activity data on time. and ourselves, and this is an area where we may need to focus This improvement seems to also have extended to other our efforts in the near future. contract types, as the importance and benefits of having accurate And talking on focusing our efforts in the near future, we are asset information is communicated and understood. also taking the opportunity this year to review our procedures This increased data quality also gives us a more definitive view and methods for constructing pavements. on how the results of our network outcomes contracts roll-out is We believe there is great opportunity for us to improve the going. quality of our capital projects to ensure we get the best results So what have we learned so far? Our assessment to date is that from our capital improvement investment. the Network Outcomes Contracts (NOCs) bring to the forefront We have a group representing our contractors, consultants maintaining a safe, reliable and resilient network for our customer. and the client working on this initiative, and we are likely to The particularly good news is suppliers are performing very be making some changes to our procedures, specifications well on the health and safety key result area, with three contracts and guidelines in coming months. achieving outstanding results for this outcome.

I am thrilled with this result, as this key result area is of utmost importance on our journey to Zero Harm. The contracts have the tools and processes embedded to support this, and these are being extended to support smaller subcontractors.

Another area where our contractors are performing well is the road user safety key result area. This measures our opportunities to improve safety outcomes for customers, and as such is very THE HYDRAULIC HOSE SPECIALISTS REDUCE DOWNTIME, INCREASE PRODUCTIVITY important to us.

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FEBRUARY 2016 43

CONTRACTOR COMMENT

Professionalisation – the need for progressive thinking HELMUT MODLIK, CEO, CONNEXIS

PROFESSIONALISATION OF TRADES is a global trend driven among other things by the need to attract and retain scarce talent, and increasing demands from customers for quality, safety and value for money. It is certain to be front of mind for many civil contractors and their staff through the coming year.

The Civil Industry can rightly congratulate itself on progress in this regard in 2015. The support for and launch of the new Civil Trades regime was a watershed moment for the industry.

It is fair to say however, that we are still very far from where we need to be. To achieve the benefits of professionalising the Civil Industry, “progressive thinking” is needed by many more employers and workers alike.

First though it’s important to clarify what I mean by professionalisation. In broad terms, I’m referring to the enhanced performance, productivity and better outcomes that come from having a workforce trained and qualified to a consistently high standard, recognised and acknowledged by all. A professional industry is characterised by a body of technical knowledge, standards, membership and accountability for performance, and generally more sophisticated work practices and technologies.

A number of local factors are driving the need to professionalise the New Zealand Civil Industry. The most significant of these is the sheer scale of investment planned in New Zealand’s infrastructure over the next few years. The 30 Year New Zealand Infrastructure Plan released last August identifies the need for a $110 billion investment in infrastructure over the next 10 years.

In addition, last July NZTA announced a planned $13.9 billion programme of investment for our land transport system over

While there will always be a place for smaller operators, all operators – regardless of size – must increasingly embrace the corporatisation or improvement of their business and professionalisation of their workforce if they are to survive and thrive. the next three years. This huge demand for civil infrastructure is driving large scale projects, requiring large scale participants and sophisticated responses.

Large scale projects demand the ability to embrace (if not lead) developments in technology and best practice. ‘Rough and ready’ cannot sustainably compete in such an environment, as work practices become increasingly complex and required to be at a consistently high standard.

Another related local imperative for increased professionalisation is the heightened health and safety obligations on all employers from 2016. This will see a sharp shift from the ‘she’ll be right’ thinking of the past to much greater safety awareness, more stringent requirements and confirmation 44 www.contractormag.co.nz

of competence. In relation to the latter for example, a certified Civil Tradesperson by definition is competent to build and maintain civil infrastructure. The competence (from a health and safety perspective) of all other civil workers, will be an entirely different matter to explain and confirm if required in future.

Professionalisation is also inherently linked to corporatisation, and the Civil Industry has seen movement in both respects.

Larger players in the market enjoy the advantages of economies of scale in everything they do. This means that in many instances, particularly in larger markets and for larger projects, smaller players struggle to compete. But corporatisation isn’t just about scale, it is about sophistication and specialisation. Indeed, corporatisation is to companies what professionalisation is to workers!

Every civil business started out as a man with a digger and a truck, and small to medium sized operators still play a significant role in our market. However things are increasingly difficult for smaller businesses, and though they are still around – and often very successful – they are no longer typical of the industry. While there will always be a place for smaller operators, all operators – regardless of size – must increasingly embrace the corporatisation or improvement of their business and professionalisation of their workforce if they are to survive and thrive.

This brings us back to the “progressive thinking” needed to change and improve. For the professionalisation of the Civil Industry, it is vital that we see a change in attitude and acceptance of the need to be Civil Trade certified. This is how other constructor sectors operate – with one standardised recognition system for all. One standard of excellence. When an electrician becomes trade qualified, everyone – the industry, customers, and the electrician him or herself – knows exactly what that means.

By contrast in civil, individual companies dictate what makes their employees competent or ‘qualified’, choosing what to learn and what to ignore. We wouldn’t accept such an approach from our electricians or plumbers for example, why should it be acceptable for those constructing our most significant infrastructure assets? The truth is it shouldn’t, and increasingly won’t be acceptable in future.

Deciding to move away from these ‘local’ or ‘internal’ versions of competence, is the first step towards professionalising the industry.

As observed, trade professionalisation is increasingly the way of the world. It isn’t a new phenomenon, nor is it the exclusive domain of the Civil Industry. We have quite a way to go before we achieve our vision of a professionalised Civil Trade, however I hope that you will join the rest of the Civil Industry on this journey, beginning with a decision today to find out more about what you need to do to improve and strengthen your business by committing your workforce to the Civil Trade.

EMPLOYMENT MATTERS CONTRACTOR

How to upskill your interview technique HAYS RECRUITMENT

MOST PEOPLE ADMIT to brushing up their interview skills before a job interview, but according to recruiting experts Hays, interviewers also need to hone their skills.

“Good interview technique is not just the candidate’s responsibility,” says Nick Deligiannis, managing director of Hays in Australia & New Zealand. “Managers also need to develop their skills in order to secure the best person for the job.”

Interviewing is becoming an increasingly popular method of selecting candidates – 83 percent of organisations use interviews to select applicants, up from 68 percent in 2009, according to the UK’s Chartered Institute of Personnel and Development/Hays Resourcing and Talent Planning 2015 Survey.

With an interview a crucial hiring tool, Nick says interviewers should make sure they conduct it fairly, thoroughly, consistently and competently in order to make a sound decision.

According to Nick, this is all the more important for SMEs. “While large corporates have a HR team to support hiring managers through this process, SMEs need to figure it out on their own. In addition, a new hire often has a much bigger impact on an SME, making it even more crucial to get the interview right.

“Ineptly handled interviews send a damaging message about what it’s like to work at your organisation, deterring talent from applying for jobs in future. On the other hand, a competent and objective recruitment process can be so powerful that even unsuccessful candidates recommend the organisation to others, boosting your brand’s reputation,” he says.

Here’s Hays’ advice on how to upskill your interview technique: • Make it human: Avoid scripts, which are likely to make for a stilted and unnatural interview and don’t allow you to explore areas of real interest. A list of guiding questions is important,

www.bigblocks.co.nz

but it should be used to steer you through the interview rather than as a cumbersome, form-filling exercise.

• Prepare: Think about the competencies most relevant to the role and the questions that will be most valuable to ask so that you can benchmark candidates against one another.

• Build rapport: Put your candidate at ease, break down any

“Ineptly handled interviews send a damaging message about what it’s like to work at your organisation, deterring talent from applying for jobs in future.

On the other hand, a competent and objective recruitment process can be so powerful that even unsuccessful candidates recommend the organisation to others, boosting your brand’s reputation.” barriers and make sure you engage in active listening in order to help them put their best foot forward. Ask a few gentle introductory questions to get the candidate warmed up, and give them enough time to answer each one.

• Look beyond technical skills: Understand your business’ unique values, culture and the type of person who will be aligned to them. Devise questions to determine a candidate’s cultural fit. If you get this wrong, your new hire could have a detrimental impact on internal culture and team morale.

• Meet legal requirements: Know what you can and can’t ask in an interview. Seek out the advice of a professional if you need to in order to adhere to legal requirements. Do not open yourself up to accusations of discrimination.

• Enjoy it: This process gives you an insight into someone else’s world and the opportunity to make a positive difference to their life.

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FEBRUARY 2016 45

CONTRACTOR LEGAL

Fish hooks in the CCA Amendments on retentions ARIANA STUART AND STUART ROBERTSON, KENSINGTON SWAN.

AS A PART OF THE LONG-AWAITED amendments to the Construction Contracts Act 2002 (‘CCA’) there are going to be significant changes to the way retention sums are dealt with. This article will discuss two important changes to the CCA as to when those changes take effect and whether the provisions in NZS3910 are void.

The CCA amendments seek to strengthen the law and practice around retentions. They seek to ensure that retention money is not misused as working capital and that on liquidation the retentions are not lost to preferential or secured creditors. The amendments seek to do this by: • Imposing a trust obligation on retention money. This means that if the retaining party (Party A) were to go into liquidation, the retention money would not be counted as a part of the company assets to be split between creditors; • Imposing penalties when retention funds are used for any other purpose; and • Providing a default interest rate for late repayment of retentions.

This article will discuss two key issues that arise from these amendments: • How the amendments potentially make void certain provisions of NZS3910; and • Which contracts are subject to the changes.

Release of retentions – potential conflict with NZS3910 Section 18I states that any term in a construction contract is void that purports to: • Make the payment of retention money conditional on anything other than the performance of Party B’s obligations under the contract; or • Make the date on which payment of retention money is payable later than the date on which Party B has performed all of its obligations under the contract to the standard agreed under the contract; or • Require Party B to pay any fees or costs for administering a retentions trust.

The above has the potential to conflict with one of New Zealand’s most commonly used standard form contracts, NZS3910 (both 2003 and 2013). Two clauses in NZS3910: 2013 allow for deferred payment until: • The next round of payment claims and payment schedules (clause 12.3.2(b)); or, if applicable • 10 working days after a Final Completion Certificate is issued (clause 12.3.2(c)).

Strictly on their face, these clauses offend section 18I(1). If the contractor (Party B) has completed all the Contract Works (including remedying all defects post Practical Completion) and the Defect Notification period then expires on, say, the 2nd of the month, then Party B has completed all its obligations under the Contract. The CCA requires immediate repayment of the balance of retentions. However, clause 12.3.2(b) requires the contractor to make a claim in the next payment claim round (say 25th of the month), await the 17 Working Days for a Payment Schedule and 46 www.contractormag.co.nz

payment (approximately 17th of the next month).

If the Defects Notification Period has expired, but the contractor (Party B) still has Contract Works and/or defects to complete, the value of the incomplete work is held back from the retentions until these are completed. This balance of retentions is released, under clause 12.3.2(c) 10 Working Days after the date of the Final Completion Certificate. The 10 Working Days breaches section 18I. In addition, clause 11.3 (dealing with the Final Completion Certificate) gives no express time in which the Engineer is to issue that certificate. One would have to rely on clause 6.2 whereby the Engineer is to act without undue delay.

You may say well any delay is cured by the right to interest.

We agree. But that misses the point, that strictly speaking both clauses 12.3.2(b) and (c) offend section 18I and are void.

We would hope that an Engineer or Adjudicator facing this situation would take a pragmatic approach and consider what the parties agreed. That cannot be guaranteed. No transitional period means you need to start making changes now.

The amendments to the CCA contains two transitional provisions for a number of miscellaneous changes (section 11A(1)), and for the inclusion of quantity surveyors, designers and engineers (section 11A(2)). Each of these changes do not affect contracts entered before 1 December 2015 or 1 September 2016 (respectively) but can do if those contracts are renewed after those dates or both parties agree.

Unfortunately there is no transitional provision for the retentions amendments. This means as of 31 March 2017 the retentions amendments will have immediate effect to both new and existing contracts. This means that contracts which you are presently entering into and/or performing that will not be complete by 31 March 2017 will be subject to the retentions amendments.

On CCNZ’s behalf, this issue was raised with MBIE and confirmed to be the case. Despite requests for this to be rectified by a simple amendment – so as to only apply to new contracts from 31 March 2017 – the Minister has declined to make that amendment. Therefore, we consider it vital that you consider adopting the retentions amendments now, including: • Keep proper accounting records of all retention money you hold, ensure that these records comply with accepting accounting principles, and are readily auditable.

• Ensure that you are holding retention funds in cash or other liquid assets that can be readily converted into cash.

• Do not use any retention funds for any other purpose than to rectify defects in Party B’s work.

If you do not start these changes now, when 31 March 2017 comes around you may well find yourself unable to comply. For example, you may have used the retentions as working capital, may have invested the money other than in accordance with the Trustee Act 1956, and not kept auditable records.

Making these changes now could save your business significant inconvenience, and breaches of the CCA, down the track.

HEALTH CONTRACTOR

Gout or childbirth

– which is the most painful?

JANET BROTHERS, LIFECARE CONSULTANTS

other rich foods which have a high salt content.

People who have had one episode of gout are likely to have repeat episodes, sometimes only weeks apart, sometimes a few months and hopefully, if at all, many years later.

There is medication to reduce the risk of a repeat episode and medication to reduce the inflammation, which is best taken as soon as the first indication of an impending episode is noticed.

As with many ‘conditions’, prevention is far better than cure and I am sure any gout sufferer would agree with that. The things you can do to reduce the risks are: • Watch your diet and avoid or reduce your intake of the common triggers – seafood, alcohol, red meat and tomatoes; • Control your weight to avoid obesity; • Control high blood pressure and high cholesterol; • Exercise regularly.

Actually all the things we know we should do as the same behaviours reduce your risk of diabetes and heart disease too. And if your father, brother or uncle has had gout these behaviours are even more crucial.

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THE MENTION OF GOUT can make grown men cringe and curl their toes up! Gout develops from an accumulation of uric acid in the body, which causes uric acid crystals to deposit in the joints, mostly commonly in the big toe.

Gout is more common in: • Men (typically between 40 - 69 when they suffer their first ‘attack’); • Women (more prone after menopause); • People with kidney disease; • People who have a family history of gout.

Obesity, high blood pressure, high cholesterol and diabetes also increase the risk of gout. Gout normally has a sudden onset of severe pain, a red, shiny and swollen big toe and the treatment is initially concerned with reducing the inflammation and therefore the pain.

Sufferers of gout report the pain makes it impossible to walk and the thought of putting a work boot on is enough to bring tears to the eyes. Bedrest is often the only option; however it is common to hear that even a cotton sheet on the toe is extremely painful.

Sufferers of gout will often identify the types of food which may cause a gout attack. Some of these include alcohol, seafood and

For fuel and lubricants call 0800 383 566

FEBRUARY 2016 47

C

CONTRACTOR CLASSIC MACHINES

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Factory photo of the first production Caterpillar 631B. Notice the clean lines of the machine and the rounded front guards over the tractor’s wheels. This model was introduced in 1962.

LA

A

SSIC

C H I N E S

PHOTO: AUTHOR’S COLLECTION

The popular Caterpillar Of all the motor scrapers that Caterpillar has produced through the years, perhaps the most popular in terms of worldwide unit sales is the model 631. BY RICHARD CAMPBELL.

ORIGINALLY INTENDED AS A replacement for the aging DW21, the first 631, the 631A was introduced in 1960.

We took a detailed look at the 631A in the July 2011 issue of Contractor.

By the standards of the time, the 631A was really only a stopgap step in the evolution of the 631 as although it featured a powershift transmission and planetary final drives, all the bowl functions were still entirely cable operated.

That all changed with the release of the 631B in 1962.

The 631B described Caterpillar launched the bulk of its new “600” series motor scraper line during the spring of 1962.

There were 11 new machines in total including the 631B. Rated at 21 cubic yards struck and 30 cubic yards heaped, the 631B was powered by Caterpillar’s 360 horsepower model D343T 6-cylinder turbocharged engine mated to a 9-speed planetary Cat powershift transmission. Top speed was around 32mph.

It was completely hydraulically operated and weighed approximately 35 tons empty.

During 1965 Caterpillar responded to an industry request for a “beefed-up” version of the machine to handle tougher going.

48 www.contractormag.co.nz

This resulted in the 631B Special Application which had an extra two tons of steel added around the bowl area to resist abrasion by rocks and rough material.

Unfortunately, around this time, there were a number of catastrophic gooseneck failures reported and customers also complained of not being able to use the machine’s higher transmission speeds due to the rough ride the machine gave.

The end result was the introduction of Caterpillar’s ‘Cushion Hitch’ which provided a number of benefits.

Firstly, it reduced the amount of stress in the gooseneck area and secondly, it prevented the ‘loping’ effect common to 2-axle overhung scrapers, giving the operator an improved ride by reducing the amount of shock transmitted through the tractor frame.

Caterpillar launched the upgraded version of the 631B in 1967, initially with cushion hitch offered as an option.

It also redesigned the tractor’s fenders, squaring them off, and boosted engine horsepower to 400hp at the flywheel.

In this form the 631B remained in production until 1969 when it was replaced by the 631C. Caterpillar built over 4000 631Bs.

The 631C described Still powered by the D343T engine, which was now up-rated to

1

1. Beautiful study of one of Romana Scavi’s Caterpillar 631Bs being push-loaded with borrow material on an Italian motorway job in 1965. This is a pre-cushion hitch machine and has the rounded tractor fenders. Push tractor is a Cat D9G.

2

PHOTO: AUTHOR’S COLLECTION

2

2. Caterpillar 631C awaiting the call to duty. This machine is riding on Michelin tyres and the one on the left front of the tractor looks as though it could do with a little inflation. Small side extensions have been welded to the bowl to increase capacity.

A factory fitted external ROPS keeps the operator safe. Note the more angular lines of the 631C tractor compared to the 631B. PHOTO: INTERNET

415 flywheel horsepower, the 631C featured a few refinements over the B series machines but capacity remained the same at 21 cubic yards struck and 30 cubic yards heaped.

The tractor unit was a lot more ‘squared off’ than the 631B’s tractor unit to streamline the manufacturing process and a larger radiator was installed to cope with the higher horsepower of the engine.

An all-new 8-speed semi-automatic transmission was fitted allowing a useable top speed of approximately 34mph.

In this form the machine weighed around 39 tons.

While cushion hitch was initially still only offered as an option, almost all purchasers opted for this item and it was made standard equipment from serial number 67M5012.

Caterpillar manufactured over 5500 631Cs.

The 631D described Commencing in 1975, an all-new version of the 631 became available, the 631D. The 631D was a complete redesign from the ground up and was powered by the new 450 horsepower Caterpillar 3408TA V-8 diesel with an 8-speed semi-automatic Cat transmission.

While struck capacity remained at 21 cubic yards, heaped capacity rose to 31 cubic yards and empty weight went up to 46.5 tons.

An extremely popular machine, the 631D was a great success story for Caterpillar which sold them by the thousands both in the USA and abroad.

They were particularly popular in Europe as they could handle large yardage projects without being too large themselves.

As a measure of the 631D’s success, very few modifications were carried out during the machine’s 10 years in production although you can spot an older 631D by where the headlights are positioned.

The 631E described Introduced in 1985, the 631E was a further refinement of the 631 series to carry the type into the 21st century.

Retaining the Cat 3408TA engine and its 450 flywheel horsepower rating, Caterpillar installed a new type of 7-speed semi-automatic transmission.

Bowl capacity remained the same.

The 631E featured several design changes to the machine’s panelwork and improved access for servicing.

Empty weight of the machine had now increased to almost 50 tons.

Like former versions of the 631, it was extremely popular FEBRUARY 2016 49

CONTRACTOR CLASSIC MACHINES

1. F irst of the 631Bs with cushion hitch, this photo (1967) illustrates the changes that were made and also the new square design fenders. Cushion hitch was originally designed to offset structural fatigue in the gooseneck of Cat overhung scrapers. It was eventually applied to all the 2-axle machines. A side benefit was a much smoother ride.

PHOTO: AUTHOR’S COLLECTION

2. A 631C engaged in forestry roading. This unit is pretty much stock standard ex-factory with external FLECO roll over structure. PHOTO: AUTHOR’S COLLECTION 3. Earlier Caterpillar 631D with ROPS cab operating in northern Minnesota, USA. Judging by the snow on the ground the cab was probably very welcome. The 631D was a total redesign by Caterpillar and was physically bigger and heavier than the 631B & 631C. They were very, very popular. PHOTO: AUTHOR’S COLLECTION

50 www.contractormag.co.nz

amongst users and operators.

A revision of the 631E took place in 1991 producing the 631E series II. Principal changes included an engine upgrade to the Cat 3408E TA which produced 490 flywheel horsepower and a return to the 8-speed semi-auto powershift transmission.

Although the machine had shed a little weight, reduced to 49 tons through some redesign, top speed had dropped to 33mph.

The 631E series II was manufactured from 1991 through to 2001 when it was replaced by the 631G, there being no ‘F’ model of the type.

In summary The 631 remains in production today as one of Caterpillar’s stalwart types, the current version of which is just about to go into full production as the 631K. During its lifespan, the 631 has seen its entire competition come and go and is now the only 21 cubic yard open bowl motor scraper offered by any manufacturer!

Former competitors included the Terex S-24, Allis-Chalmers TS360, Wabco 339, Michigan 310 and International Harvester 295.

The New Zealand connection A very popular motor scraper in this country, various 631 models have seen extensive service, especially on hydro projects.

New Zealand dealer Gough, Gough & Hamer has imported examples of all the 631 variants mentioned in this article although there are no longer any 631Bs left as they were sold and exported offshore around 1980.

Fleet users included Green & McCahill, Ross Reids, WH Butson, Earthmovers Waikato and W Stevenson to mention just a few.

For the model collector For once, the model collecting fraternity does have something to add to their collections.

Although there are no models of the 631B or 631C available in any scale, there are some fine models of the 631D and 631E. Recently bankrupted Spanish model producer Joal produced a model of the 631D to 1:70 scale.

Apart from the odd scale and questionable tyre tread pattern, the model is very good indeed and represents a mid-1970s’ production machine. It has been released several times and can be acquired quite cheaply.

4. A couple of 631s from the author’s collection showing the amount of detail available in modern day diecast models.

Unit in front is a Black Rat Model 631D with ROPS cab and exterior air conditioner. Everything works on this 1:50 scale model including the cushion hitch. Rear model is a Classic Construction Model 631E, one of only 750 produced. This too is fully operational. The only things missing are the smell & oil leaks!

UK model producer Black Rat has also made the 631D, but to 1:50 scale.

The Black Rat model is one of the finest you can add to your collection, the only drawback being the price and the very limited numbers that were produced.

It was made in at least four different versions with only 50 of each produced in each run and has a working cushion hitch.

They are highly collectable but fetch over US$1500 at auction.

The 631E was manufactured in model form in 2013 to 1:48 scale by Classic Construction Models (CCM) in a limited run of 750 models.

This, like the Black Rat model, is a stunning example of the model maker’s art and is very accurate. Like the Black Rat model it also features a working cushion hitch.

PHOTO: AUTHOR’S COLLECTION

5. Near-new Caterpillar 631E at speed in California on an industrial complex development of over 3.5 million cubic yards.

This machine was part of a fleet of 12, along with 651s and 657s as well. The 631E was a smart and businesslike looking machine. PHOTO: INTERNET

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FEBRUARY 2016 51

CONTRACTOR MOTORING

BMW 3-Series still thrills BMW’s 3-Series is blowing out its 40th birthday candles but, unlike some of us (cough), it’s looking trimmer, leaner and more handsome than ever. By CAMERON OFFICER FOUR DECADES on from its introduction,

the 3-Series accounts for a remarkable 25 percent of global sales, making it far and away BMW’s most successful model.

Around 14 million 3-Series have been sold since 1975.

As is the way with all of BMW’s models, the 3-Series range has just been through a ‘facelift’; a bit of nipping, tucking,

BMW 330i Engine: 1 998cc four cylinder twin turbo petrol Transmission: 8-speed automatic Power: 185kW Torque: 350Nm 0-100km/h: 5.8sec Max speed: NA Fuel economy: 5.8L/100km Co 2 emissions: 136g/km Price: $88,000 + ORCs

52 www.contractormag.co.nz

streamlining of the range and updating of prices.

Yes you’re right, there is a degree of marketing spin involved in such ‘facelift’ exercises; some new kit and a slightly sharpened price in order to hold the interest of the brand faithful until the next proper generational update in a couple of years’ time.

But actually BMW has seen fit to add some pretty good stuff to the range. And the ‘facelift’ process is always enjoyable as it allows one the opportunity to rediscover what is truly great about the 3-Series. Namely, how it drives.

The updated F30 3-Series sedan and wagon features redesigned exterior elements, more standard specification, a streamlined model range (down from 10 to six variants in total) and the debut of BMW’s new 2.0-litre, four cylinder 135kW petrol in the 320i Sedan and Touring.

The BMW 330i I sampled features a redesigned front end with full LED lights, larger air intakes and new bumpers. LED tail lights feature at the rear, and inside the interior has been updated with new

gloss black surface detailing.

While undoubtedly the nicest 3-Series cabin yet, it’s still function over form inside; there’s nothing unnecessarily showy about the mix of trim or the level of instrumentation. As an aside, using iDrive again reminds one of the gulf between BMW’s system and the similar systems that several competitors launched in its wake (I’m mainly looking at you, Lexus). As derided as it was praised when it first surfaced, today there’s nothing quite as intuitive to use as iDrive.

BMW has made standard several convenience features which were once the preserve of a heavily ticked options list. Central among these is BMW ConnectedDrive, which every 3-Series now receives.

Powered via a SIM card built into the vehicle, BMW ConnectedDrive enables the driver to access a range of services directly through the vehicle, rather than relying on a peripheral smartphone.

These services even extend to a ‘live’ Concierge Service, whereby a

ConnectedDrive assistant will help the driver find points of interest such as restaurants and hotels as he or she heads toward their destination. The concierge can even make a hotel reservation on behalf of the driver and have details such as navigational and contact information sent straight to the car.

There are more immediate driver aids within the vehicle too, such as Parking Assistant, which provides automatic control of steering when performing parallel and lateral parking manoeuvres, as well as the camera-based Driving Assistant system which groups together Pedestrian Warning and Light City Braking technologies with Lane Departure Warning.

Other now-standard items include a rear-view camera, heated front seats, an automatic stop/start system (which shuts the engine off when idling at traffic lights or in heavy traffic and restarts the instant you lift your foot off the brake pedal) and an updated eight-speed automatic gearbox.

But anyway, back to the way the BMW 330i drives.

Because who would ever want for a six cylinder after sampling the twin turbo four cylinder in the BMW 330i? It revs freely, offers an immediacy of acceleration which thrills every time, is fuel efficient and has more power than the old 328i it replaces; 185kW versus 180kW. And with 350Nm of torque on offer, there’s as much punch from a standing start as there is on the open road.

Push this car through a series of turns up a reasonable hill and you can feel within a matter of metres why the 3-Series is so heavily benchmarked by other carmakers.

The steering (Servotronic electrically assisted) has been sharpened up, meaning the typical direct steering feel one associates with the 3-Series remains as precise as ever. Not only is there a pleasing consistency to the way it corners, but there’s a solidity too. The updated 3-Series range boasts retuned, stiffer suspension and more rigid bodyshell mountings which serve to reduce body roll through bends. Put all that together and the car feels utterly vacuumed to the road.

The BMW 330i remains a gorgeous mid-size sedan, melded to a sprightly, efficient powertrain and what continues to be a brilliantly executed chassis. Forty years on, there is still nothing that drives quite as engagingly and effortlessly.

Volkswagen Caddy Engine: 1.4-litre four cylinder TSI petrol

0-100km/h: NA

Transmission: 7-speed DSG automatic

Max speed: NA

Power: 92kW

Fuel economy: 5.6L/100km

Torque: 220Nm

Price: $37,490

Have Caddy, will carry Don’t be fooled by the diminutive look of the Volkswagen Caddy. With 3.2m 3 capacity in its load space, it actually boasts a lot of volume.

The Caddy features a new 1.4-litre TSI petrol engine with a power output of 92kW and torque of 220Nm. You can option either a 6-speed manual or 7-speed DSG automatic.

Aside from the echo that is part and parcel of travelling in a tin can, it’s all car-like up front. Volkswagen’s plain-but-tasteful dashboard and centre console arrangement is the same in here as it is in a mid-spec Golf. The Caddy now features tasty morsels such as Bluetooth hands-free phone and audio connectivity, a touchscreen, Hill-Hold Assist on the DSG automatic model to help with starting on an incline and a handy reversing camera which is unique in this class.

Rear load access is through the tailgate which swings upward like a conventional wagon, or through a sliding side door on the vehicle’s left-hand side. Personally I’d prefer barn doors at the back; not that I’m actually carrying out deliveries on a regular basis, but especially in tighter urban environments swinging that large door upwards might not always be easy.

Volkswagen’s smallest van (remember it has been making them since 1950 and there are several models in Volkswagen’s commercial range) can also be bought in slightly larger Maxi format, which gives you 4.2m3 capacity and a 1005 kilogram load carrying capacity. Volkswagen says that’s only 75 kilograms less than your common or garden variety Toyota Hiace.

Not so small after all then.

FEBRUARY 2016 53

CONTRACTOR INNOVATIONS

New contractors’ rental concept Contractors can spend a lot of money on equipment they might only need for one job, or pay out dearly to rent that equipment.

US-based EquipmentShare, founded by brothers Willy and Jabbok Schlacks, came up with the idea of contractors renting out their idle gear between them.

The brothers, who have been in the construction industry for more than 20 years, grew tired of facing the buy-versus-rent conundrum when it came to needed equipment. According to Willy, contractors, among them, own about three times the amount of construction equipment that is owned and supplied by the rental companies. Which means a lot of excess inventory for contractors to take advantage of, as long as there’s an efficient way for them to connect with one another.

EquipmentShare aims to provide that connection for contractors to find and rent unused equipment, while the owners of that idle equipment make money. GPS trackers on the rental equipment allow the owners to keep tabs on who is using their equipment, what it’s being used for and where it’s being used.

This connection is the same sort of two-sided rating system as Airbnb (accommodation rental) and other peer-to-peer platforms programmes and also performs as a free online management system for construction equipment.

The concept is now being set up here in New Zealand, so watch this space.

New Navman behaviour programme Navman Wireless has released its latest GPS software platform called Navman Wireless Director, a powerful new platform that is the result of collaboration between the engineering teams of Navman Wireless and its newly combined sister company, Teletrac.

Director’s new driver and vehicle behaviour solution, Safety Analytics, is said to provide an “unprecedented view into fleet activity, showing driver and vehicle behaviours in real time, promoting better behaviour within company vehicle fleets”.

Composed of a visual event viewer and driver scorecards, the software feature enables businesses to monitor and replay unsafe driving events that occur on the road. The real-time scorecard function creates comprehensive reports summarising unsafe road behaviour and provides side-by-side driver rankings.

Staying ahead of the game With over 100 staff and over six decades of contracting, Taggart Earthmoving is a large contracting company based in Christchurch.

Having used Leica Laser Levels and a Leica 1200 Total Station in the past, managing director Paul Taggart decided to explore options around GPS technology.

“After visiting Con Expo in Los Vegas, I narrowed it down to a choice of Leica as, after field trials, we found its technology very user friendly and adaptable for our staff in the field. We also chose [distributor] Global Survey as they offered sales service along with good back up with advice as we developed our knowledge base with the technology.”

One of the first jobs the Taggart crew engaged the Leica 3D Grader System and iCON GPS on was the major Awatea Parks subdivision in Canterbury for Fletcher Residential. Simon Currie, senior project supervisor at Taggart, says it has proved intuitive to use and can be learned quickly.

“This allows us to manage our jobsites more independently and efficiently. So we reduce downtime, increase productivity, and reduce outgoing costs.”

The iCON GPS provides the site foreman with the software to conduct simple survey stakeout tasks, as-built checks, cut and fill measurements, and quantity checks without having to hire a surveyor. Stock pile and volume calculation reports can be emailed back to the office and used as supporting evidence for payment claims.

“The main benefit to us was the ease and speed of going through the files to get to the stakeout and volume reports quickly,” says Simon. “Leica systems are very contractor friendly for the guys in 54 www.contractormag.co.nz

the field, and allow them to easily access and send accurate reports to their project managers.”

As Taggart has multiple projects spread around the Christchurch district, it has chosen to use the Smartfix Network instead of traditional base stations, which allows it to easily move both grader and iCON GPS between sites without having to setup a base station at each site every time equipment is moved.

Paul Taggart says he intends to build on that innovation in the near future with setting up a scraper. As other large earthwork projects come on board Taggart will look at increasing its machine control system fleets.

“When we look back, it’s something we should have done sooner rather than later,” he adds.

Kaeser Mobilair

Improved greasing Lube Shuttle is said to be an innovative and simple system that improves the efficiency of greasing operations, saving money and time.

Conventional grease cartridges often have grease left that is unreachable. The Lube Shuttle avoids wastage by delivering all the grease in the gun. Plus the open bottom cavity enables the user to see what quantity of grease is left in the tube.

Lube Shuttle is a one-handed pistol-grip type gun and is manufactured with a zincplated steel barrel and a solid cast iron head.

When used with the ridged grease pipe and coupler, lubrication is hassle free. Loading could not be easier – just unscrew the cap, insert into the gun and twist to lock – no need to pull open tabs or mess around with plungers.

Oil Imports’ technical support manager Bob Foothead, says the response to the Lube Shuttle on the factory floor has been incredible. “We have had feedback that the Lube Shuttle not only is a more hygienic way of greasing, it’s more economical as it uses every drop. The one-handed operation makes those difficult to reach areas easier for the operator to grease.”

More information: www.totaloilsolutions. co.nz/oil-imports-news/lube-shuttle/.

To order call: 06 871 5325 or contact: www.totaloilsolutions.co.nz/contact.

Auckland-based engineering company Blueprint Diesel has acquired the distribution rights for Kaeser Mobilair portable compressors.

Managing director James Smith says the Kaeser appointment is a significant development in the company’s 10-year history.

“This is a serious platform from which to build and grow the Blueprint Diesel business.

“We’re currently recognised as a Deutz key dealer for New Zealand so the introduction of Kaeser complements this perfectly. This will allow us to expand and diversify our knowledge and ability to support our loyal customers even further.”

Made in Germany to exacting quality standards the renowned range of Kaeser compressors is built to deliver an energy efficient reliable supply of compressed air no matter the construction application.

More information: Phone O800 433 889, 09 271 0371 or visit www.blueprintdiesel.co.nz.

Designer tools for the ute Tyres and good food are two things normally associated with the Michelin name, but the French company is extending its repertoire to car accessories and lifestyle items that are now available in New Zealand.

Michelin Lifestyle was created in 2000 to extend and enhance the appeal of the Michelin brand through new consumer products and its latest wares have been picked up by Griffiths Equipment for distribution in our market.

Not surprisingly, some of the first of the new Michelin products available here are tyre-related, including foot pumps and pressure gauges, but they’re not your ordinary pumps and gauges, says Griffiths Equipment sales manager Tim Paterson.

“The styling and quality of these Michelin products is exceptional.”

Another product in the Michelin range that would be handy in any motorist’s glovebox is the digital tyre depth and pressure gauge, which Paterson describes as “quite unique, as I’ve never seen a digital device that will do both”.

More information is available at www. griffithsequipment.co.nz.

New Genie boom arrives Genie continues to expand its Super Boom family with the recent arrival of its new SX-150 telescopic boom lift, which follows on from the success of the Genie SX180.

New Zealand distributor for Genie, Youngman Richardson says the new model will be available later in the year.

The SX150 boom lift reaches its full platform height of 46 metres in less than three minutes and features four programmable height settings and a horizontal and vertical rotating jib allows for quick repositioning of the platform. The boom lift also provides unrestricted range of motion with a lift capacity of 340kg for a maximum of two people.

External sensors and manifolds are protected under steel covers that are easily removed providing excellent service access.

More information: contact Youngman Richardson; 09 443 2436, or for South Island enquiries, 03 341 6923.

FEBRUARY 2016 55

CONTRACTOR CIVIL CONTRACTORS NEW ZEALAND

CCNZ – updates CCNZ – Kensington Swan Roadshow

IMPORTANT:

CCNZ, in conjunction with Core Associate member, Kensington Swan, has roadshows planned for late February to early March. The roadshows will give critical updates on the recent Construction Contracts Act amendments and Health and Safety at Work Act, which comes into effect from 4 April this year. Kensington Swan will have its specialist advisors at each roadshow, plus there will be a CCNZ representative.

This is an opportunity to ask questions and get practical guidance in these interactive two-hour sessions.

The sessions will cover: 1. Recent Construction Contracts Act amendments focusing on: i. t he new frameworks for retentions and what contractors need to do; ii. t he impact of the inclusion of consultants in the CCA; iii. the changes to the adjudication procedures.

2. Recently introduced Health & Safety at Work Act focusing on: i. t he changes to the obligations regarding the person in control of workplace (PCBU); ii. t he new worker participation and collaboration requirements.

3. Important CCNZ Updates.

The session dates and locations are as follows:

Major change to payment claims under the Construction Contracts Amendment Regulations from 1 December 2015

Date Time Region Whangarei Tues 1 Mar 3pm – 5pm Auckland Thurs 25 Feb 4pm – 6pm Wed 2 Mar 5pm – 7pm Tauranga Thurs 3 Mar 7am – 9am Waikato Tues 8 Mar 4pm – 6pm Taranaki Napier Wed 24 Feb 5pm – 7pm Palmerston Nth Wed 24 Feb 5pm – 7pm Wellington Wed 9 Mar 6pm – 8pm Nelson Thurs 25 Feb 4pm – 6pm Blenheim Fri 26 Feb 8am – 10am Christchurch Mon 29 Feb Noon – 2pm Cromwell Tues 1 Mar 4pm – 6pm Dunedin Thurs 3 Mar (TBC) TBC Invercargill Wed 2 Mar 4pm – 6pm Venues will be confirmed by mid-January and cost for members and affiliated clients will be $60 plus GST per person and for non-members $80 plus GST. • To register for a roadshow please contact Tricia Logan on tricia@civilcontractors.co.nz or 04 496 3278.

Many changes to the CCA that impact on contractors come into effect later in 2016 and 2017, but one significant change affecting all CCNZ’s members regarding entitlements to payment came into effect on 1 December 2015.

With the removal of the distinction between a residential and a commercial construction contract, all construction contracts entered into from 1 December 2015 (or renewed on or after that date) are treated, essentially, the same. And, importantly, all payment claims issued under those new (or renewed) contracts must now be accompanied by a written outline of the process for responding to the payment claim and an explanation of the consequences of not responding and of not paying the claimed amount or the scheduled amount in full (whichever is applicable).

This written outline must be in Form 1 as prescribed by the newly-released Construction Contracts Amendment Regulations 2015.

• If you have any queries contact either Malcolm Abernethy at CCNZ, 0800 692 376 or Mary Haggie or Stuart Robertson at Kensington Swan on 09 379 4196.

Hose burst protection valves required on excavators greater than 7 tonne The following is the NZ Gazette notice requiring the fitting of hose burst protection valves on excavators greater than seven tonne from 1 January 2016.

Pursuant to Regulation 6 of the Health and Safety in Employment (Pressure Equipment, Cranes, and Passenger Ropeways) Regulations 1999, the Ministry of Business, Innovation and Employment has given notice of exemption from the requirements of these Regulations for the following equipment: Items of mobile plant (including earth-moving equipment), not originally designed as a crane, and used for load lifting incidental to their principal function are entirely exempt from the Health and Safety in Employment (Pressure Equipment, Cranes, and Passenger Ropeways) Regulations 1999 subject to the following conditions as applicable: 1) Lifting points and equipment used for rigging loads are to be certified by a Chartered Professional Engineer; and 2) i n the case of new and used hydraulic excavators with an operating weight of 7 tonne or more, the following additional conditions apply: a. the equipment is not to be modified to make it operate as a crane other than the provision of a lifting point; and b. hose burst protection valves are required after 1 January 2016; and c. operators and ground support personnel are to be adequately trained; and d. operations are to be carried out in accordance with the Approved Code of Practice for Load-Lifting – Rigging; and e. the equipment is to have a loading chart available to operators.

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ZX160LC-5 ZX180LC-5 ZX200-5/ZX200LC-5 ZX225USR-3/ZX225USRLC-3 ZX240-5/ZX240LC-5 ZX280-5/ZX280LC-5 ZX330-5/ZX330LC-5

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