FREE
Risky business
What happens when your building company goes down the slippery slope?
SCAN QR CODE OR TEXT “V22CB” TO 8101 FOR
HANDS-FREE READING
Daily obstacles all company owners face
Navigating supply chain delays
Keeping projects on time, time after time
Developing a risk management strategy
Ph 03 38 444 76 22b Lane St, Woolston, Christchurch admin@mightykiwi.com | www.mightykiwi.com ONE PLACE, ONE STOP We cover all heavy transport, automotive, industrial and specialize in Combilift straddle repair.
• • • •
Mechanical Electrical Hydraulics WOF
• Tyres • Fleet Servicing • Mechanical
Mighty Kiwi Commercial are your specialist Christchurch mechanics who provide automotive services for petrol and diesel mechanical, electrical and hydraulics, right through to tyres and fleet management. We provide operational support, a wealth of technical knowledge and total can-do attitude to get the job done right. You can rely on us to keep on pace on the latest technology and bring you the best products, advice and service.
Mighty Kiwi Commercial Mighty Kiwi Commercial is your specialist Christchurch-based mechanics and automotive store, which covers various heavy transport, automotive, industrial, and earth moving equipment. Services include mechanical, electrical, hydraulics, WOF, tyres, and fleet servicing. The team of experts provides operation support, lots of technical knowledge, and a can-do attitude to get the job done efficiently. The passionate team can take your troubles away, as they use the latest technology and highquality products to give you resourceful knowledge, advice, and support. With over 90 years of combined experience across the team, they will help you provide high-quality and affordable mechanical, electrical, and hydraulics services. Mighty Kiwi Commercial is there to provide you with the best care and have exceptional workmanship. The team goes by “one place, one-stop in.” They fix all the vehicle makes and models of cars, trucks, and equipment, no matter the size! Mighty Kiwi Commercial came about to help Kiwis with their problems.
The owner and director Joel Aylward started the business in 2016 to pursue building an exceptional workshop with quality services and modern equipment for clients. Mechanical servicing, repairs, and rebuilds include but aren’t limited to: • Servicing & scheduled maintenance • Engine, gearbox, diff, steering boxes, & multi-disc clutch overhauls • Cambelts & timing chain replacement • Suspension & steering repairs • Brake maintenance & repair. Electrical diagnostic, repair, and battery services include:
WOF inspections for cars, four-wheel drives, trailers, and motorcycles include but aren’t limited to: • Tyre condition (including tread depth) • Brake operation • Structural condition (rust is not allowed in certain areas) • Lights • Glazing (is your windscreen safe?). Tyre fitting and wheel alignment services include the latest in wheel alignment machinery and diagnostics equipment to ensure the safety and longer lifespan of your tyres. Get it checked if: • Your car is ‘pulling’ to one side & hard to keep in a straight line when driving • You feel excessive road shock through the steering wheel • The steering wheel doesn’t return to centre • Irregular tyre wear - on the front or rear tyres • The steering feels heavy.
Fleet servicing includes services like: • Servicing & scheduled maintenance • Hydraulic diagnostic & repairs • Electrical diagnostic & repair • Batteries and battery testing • Mechanical diagnostics • Petrol & diesel engine tuning • General engineering • Wheel alignments • Car & truck tyres & tyre fitting • Batteries & battery testing • WOF authority for cars, 4WD’s, trailers, & motorcycles. Check out the website for more information on what the team does, about the company, services provided, testimonials from previous clients, the latest news, and frequently asked queries via the link: www.mightykiwi.com. Get in touch over the phone on 03 38 444 76, or email admin@mightkiwi.com. Alternatively, head to the store on 22b Lane Street, Woolston, Christchurch.
• Auto electrical diagnostic & repair • PLC (programmable logic control) diagnostic & repair • Alternator & starter motor repair • Wiring harness repair & rebuilds • Battery testing. Hydraulics hoses, pumps, and motors services include: • • • •
Hydraulic diagnostic & repairs Ram rebuilds Pump rebuilds & repair Identifying & repairing leaks.
www.elevatemagazine.co.nz
3
CONTENTS
6
CANTERBURY E DITION: 1 | 2022 | REF CODE #V22CB
8
A wide-ranging look at risk management Five steps to develop a proven strategy
11
Navigating your finances Tips from a veteran tradie
12 14
16
Supply chain strain Navigating your way through delays
18
Information risk Mitigating the effects of poor-quality documentation
Working smarter, not harder How to keep projects on time, time after time
28
Hidden building costs Out of sight shouldn’t be out of mind
Risky business What happens when your building company goes down the slippery slope?
32
The five largest small business challenges Daily obstacles all company owners face
12
8
10
Welcome... Welcome to the first edition of Elevate, the magazine dedicated to lifting building performance. In this issue we look at the recent Building Code requirements taking aim at energy efficiency and outline five steps to develop a risk management strategy for construction scheduling. You’ll find articles on hidden building costs, managing your finances, and the
PUBLISHER The Job Agency T|A Markat 38 Lowe Street, Addington, Christchurch 8011 MANAGING DIRECTOR Gary Collins
five largest small business challenges. From a logistics perspective, there are pieces on how to keep projects on time, time after time, navigating your way through supply chain delays, modernising our rental laws and what to look for in a real estate agent... plus lots more. Enjoy.
r JonathonTayloEditor EDITOR Jonathon Taylor - (03) 961 5098 editor@markat.co.nz
ART DIRECTOR Jarred Shakespeare - (03) 961 5088 jarred@markat.co.nz
GM OF OPERATIONS Kylie Palermo
PRODUCT CO-ORDINATOR Amber Mundy - (03) 961 5075 amber@markat.co.nz
SALES Angela Elley - (03) 961 5184 sales@markat.co.nz
ACCOUNTS Jo Pritchard - (03) 961 5161 accounts@markat.co.nz
DISCLAIMER
This publication is provided on the basis that The Job Agency T|A Markat is not responsible for the results of any actions taken on the basis of information in these articles, nor for any error or omission from these articles and that the firm is not hereby engaged in rendering advice or services. The Job Agency T|A Markat expressly disclaim all and any liability and responsibility to any person in respect of anything and of the consequences of anything done, or omitted to be done, by any such a person in reliance, whether wholly or partially upon the whole or any part of the contents of this publication. Advertising feature articles are classified as advertising content and as such, information contained in them is subject to the Advertising Standards Authority Codes of Practice. Contents Copyright 2020 by The Job Agency T|A Markat. All rights reserved. No article or advertisement may be reproduced without written permission.
4
www.elevatemagazine.co.nz
www.elevatemagazine.co.nz
5
By the numbers
New Building Code requirements take aim at energy efficiency
These are the biggest energy efficiency changes to the Building Code in over a decade and will support the building and construction sector to help New Zealand reach its goal of net zero carbon emissions by 2050
The latest changes to the Building Code will make new homes and buildings warmer, drier and healthier, with less impact on the climate, says Jenni Tipler, manager of Building Performance and Engineering at the Ministry of Business, Innovation and Employment. The changes focus on increases to insulation requirements and introduce six new climate zones to reflect the specific weather experienced in different parts of New Zealand. “These are the biggest energy efficiency changes to the Building Code in over a decade and will support the building and construction sector to help New Zealand reach its goal of net zero carbon emissions by 2050,” Jenni says. “The new requirements will reduce the energy needed to heat homes by up to 40 percent, allowing people to heat their homes more easily and efficiently, which will lead to positive health impacts and increased energy savings for New Zealanders. “One of the simplest and most cost-effective ways to boost thermal performance is to increase roof insulation. That’s why we’ve decided to double the minimum amount of roof insulation required for new builds across the country. “Windows represent the largest source of heat loss
6
in new homes, so we are increasing the minimum insulation level for windows across the country, with a focus on targeted higher upgrades in colder climate zones. “We recognise that regions across New Zealand have very different climates and the six new climate zones announced today mean buildings will need to be constructed to different insulation levels to reflect this. “The new window insulation requirements in the warmest climate zones will see a twostep approach with an interim increase in the next year and an additional increase in the following year. By the end of 2023, all parts of the country will have a similar minimum level of window insulation requirements.”
www.elevatemagazine.co.nz
List of changes in this year’s update: 1. Energy efficiency for housing and small buildings – Focusing on the level of insulation in Acceptable Solution H1/AS1 and Verification Method H1/VM1. 2. Energy efficiency for large buildings – Focusing on the level of insulation in Acceptable Solution H1/AS2 and Verification H1/VM2. 3. Energy efficiency for heating, ventilation and air conditioning (HVAC) systems in commercial buildings – Introducing the Verification Method H1/VM3 for the energy efficiency of HVAC systems. 4. Natural light for higherdensity housing – Refreshing the Acceptable Solutions and Verification Methods (AS/VMs) for clause G7 to ensure
people have the sufficient amount of daylight for higher density housing. 5. Weathertightness testing for higher-density housing – A revised a weathertightness testing method cited in Verification Method E2/VM2 that can be used to demonstrate that cladding systems are sufficiently weathertight. 6. Standards referenced in B1 Structure – Citation of four new standards used to demonstrate compliance for structural design in Acceptable Solution B1/AS1 and Verification Method B1/VM1. 7. Editorial changes to Acceptable Solution B1/ AS1 – Amended text within Acceptable Solution B1/AS1 to make editorial changes in regards to geotechnical requirements.
Transforming Canterbury Properties Walsh Painters 2.0 are your locally owned and trusted professional interior and exterior painters and plasterers. We provide a full range of residential and commercial painting and plastering services throughout Canterbury. Indeed, our team of experienced, reliable, and trusted, painters and plasters can help you transform your property whether it is a residential, commercial, or rental investment. Walsh Painters 2.0 specialises in interior and exterior painting and plastering as well as property maintenance.
customer service, you can be confident that you have a reliable team ready to create a transformation you will be delighted with.
Interior Painting
Enhance the appeal for your customers and staff while protecting and improving the value of your asset.
We pride ourselves in delivering the highest possible standards of quality and workmanship and back this up with a peace of mind five-year guarantee and follow-up service.
We offer a range of different services to fulfil all of your painting needs, no matter the size or difficulty of the job. Our services include property maintenance such as water blasting and water proofing as well as painting service, we do residential, commercial and rental painting and plastering–we really are your one stop shop.
With a proven track record, years of experience in the painting industry and a commitment to quality
Although paint may seem like a simple touch, it really does add so much value and appeal to your property.
With a combined experience of over 70 years, you can be rest assured that you have a professional team of plasters and painters working for you.
Refresh the mood and appeal of your interiors with new colours and a quality finish.
Commercial Painting
Exterior Painting
Increase your street appeal and property value with a stunning exterior makeover. We also offer a peace of mind guarantee, are eco-friendly, customer focused, flexible and reliable, quality focussed and health and safety conscious. So contact us today for a free quote, we would love to hear from you.
We are here for your interior and exterior painting needs. We can also plaster new/ replaced GIB and spray roofs and fences. P. 027 847 6975 E. walshpainters2.0@gmail.com www.walshpainters.co.nz Walsh Painters 2.0 www.elevatemagazine.co.nz
7
A wide-ranging look at
risk management
Five proven steps to develop a risk management strategy for construction scheduling The engineering and construction industry has historically taken an informal and improvisational approach to risk management, often leading to risks being identified too late in the project lifecycle. Results from the June 2020 quarter survey depicted that building projects throughout New Zealand were expected to see delays in completion times lasting between 20 and 60 working days, with the impact of COVID-19 regulations yet to be accounted for.
categories in diminishing significance levels: site conditions, main contractor, pricing, subcontractor, external and client related risk. It’s important to expand that focus, elevating that visibility to the program level. This will allow teams across projects to better synchronise resources and adjust plans to realise successful outcomes. Organisations managing construction projects (or portfolios) are increasingly looking for ways to incorporate more comprehensive risk management practices, but many in the industry are not sure where to begin.
Proper risk management will help project teams identify potential risks before they are encountered and give the teams time to develop strategies to reduce the issue’s impact. Some firms mistakenly only manage risks at the project level, which leads to an incomplete picture of exposure and performance. Results from a NZ questionnaire survey of consultants and contractors in the construction industry showed 21 risk factors which were segregated into six broad
8
www.elevatemagazine.co.nz
Here are five proven steps to help develop a thorough risk management strategy in construction scheduling:
1) Recognise the risks The management team, at the beginning of a program or project, should try to identify potential risks. Could poor weather or uncertain site conditions potentially delay construction? Is there a risk that material costs could significantly rise unexpectedly? It is impossible to identify and manage every possible risk, but the team should agree on
any events that are most likely to occur and have the greatest impact. These are the factors that they will monitor and manage.
2) Evaluate your exposure After identifying potential risks, the team should determine the likelihood of each risk occurring, as well as impacts to costs and schedules. Risks should then be ranked on the probability that they are to occur, and the impact they may have. Teams should prioritise how they will manage specific
risks with the help of Monte Carlo simulations and scenario planning tools. This will allow users to create and run various what-if scenarios by changing key variables. While Monte Carlo analysis can be conducted via a spreadsheet, this approach is not suited to manage large, complex projects with thousands of data points that can change frequently, including calendars, resources, and the relationships between them. It is also not suited to conducting risk analysis
plays an important role here to assess what-if scenarios and determine costs and benefits of each mitigation strategy. While some risks ultimately can’t be avoided, such as building during unforeseen inclement weather conditions, this step can reduce the impact on the project by building in appropriate schedule, labor, and supply chain contingencies.
4) Disseminate for clarity The project team should communicate this information
Proper risk management will help project teams identify potential risks before they are encountered and give the teams time to develop strategies to reduce the issue’s impact.
across far-reaching programs. For these types of complex scenarios, it is best to use a true risk management application. In addition, new AI tools leverage machine learning to analyse project data – both past and present – to continually assess schedule accuracy and provide predictive intelligence into potential risks on projects. Such tools can empower teams across the organisation to sharpen decision-making and take action on emerging risks before they become showstoppers.
3) Establish a response strategy Teams should have a detailed plan of action on how they plan to mitigate high-impact risks. Scenario planning technology
Frank Malangone Senior director for Product and Industry Strategy, Oracle Construction and Engineering
more informed decisions about the best path forward.
In conclusion Good risk management strategies require the integration and analysis of
While some risks ultimately can’t be avoided, such as building during unforeseen inclement weather conditions, this step can reduce the impact on the project by building in appropriate schedule, labor, and supply chain contingencies.
diverse sets of information, including budget, cost, and schedule data. With this in mind, organizations managing construction projects will be well on their way to shoring up their risk management practices.
to the project owner after they have completed their risk assessment and defined mitigation strategies. This demonstrates an effort to take a proactive approach to reducing risk and allows contractors an opportunity to discuss the risks, mitigation strategies, and potential impact on the schedule and cost of the project with the project owner.
5) Track, adjust, and repeat As risks continue to develop, program managers must build in regular assessments to their mitigation strategies as conditions change. Again, machine learning provides key support here by helping to identify potential risks and inefficiencies early, helping organisations make
www.elevatemagazine.co.nz
9
Variations
The word “variation” will often trigger deep concern and red flags for those actively engaged in the construction sector. Stakeholders do not like the uncertainty it brings. Tina Hwang and Marcus Beveridge Queen City Law
Lawyers and consultants are often walking on eggshells in these circumstances. Contractors fear variations may not be approved or paid, and principal owners fear that the price of the contract will increase. Lenders want assurance that the project will be finished under budget. The word forever has a negative connotation in the industry with parties wanting to avoid this wherever possible. However, there are some contractors who will intentionally pitch a low price to win the contract and immediately issue copious variation orders.
What is a Variation? The term “variation” is not expressly defined in the Building Act 2004 (the BA) or the Construction Contracts Act 2002 (the CCA). However, the BA defines “minor variations” under section 7 as “a minor modification, addition, or variation to a building consent that is permitted by regulations made under section 402(1) (kd)” which then takes you to section 45A “minor variations to building consents”. This section sets out compliance obligations on minor variations
10
and is not particularly helpful to determine a variation. The commonly used NZS 3910:2013 terms states variations are “a Variation to the Contract Works pursuant to 9.1 and any other matter which is stated to be a Variation or to be treated as a Variation by the Contract” which again makes the term quite circular.
Variations in the construction industry are generally regarded as an amendment to the agreed scope of works. This is unfortunately a common occurrence throughout a construction project and therefore a contentious area.
Variations in the construction industry are generally regarded as an amendment to the agreed scope of works. This is unfortunately a common occurrence throughout a construction project and therefore a contentious area.
What can be claimed as a Variation? Clause 9.1 of the NZS 3910:2013 permits the following Variations to the scope of the Contract: a. Increase or decrease the quantity of any work b. Omit any work c. Change the character or quality of any Material or work d. Require additional work to be done e. Change the level, line, position, or dimensions of any part of the Contract Works. However, many construction contracts are laced with pages of special conditions to try
www.elevatemagazine.co.nz
to define, limit, control and manage variations throughout the project. Each contract will dictate what can and cannot be treated as a variation.
How can you avoid Variations? Variations are ultimately another form of risk allocation. This highlights the importance of clear and well drafted construction documentation.
All parties must clearly understand the risk allocations before a project commences to avoid unnecessary disputes about who should bear the extra costs of a variation.
This article is intended for general guidance only and should not be relied upon in individual cases. Professional advice should be always be sought before any decision or action is taken.
Navigating your finances
- tips from a veteran tradie April marks the start of a new financial year in New Zealand; a year we hope to navigate with more clarity than the one just passed. If tackling the financial specifics of the year wasn’t already a timely and complex process, considering the wage subsidies and changing legislations enforced as a result of the pandemic can be that much more confusing. However, mastering money and making the end of financial year reporting a more seamless process doesn’t have to feel so out of reach. Seeking advice from a professional, staying on top of changing regulations and leveraging the right platforms will help business owners avoid the
typical pitfalls that many fall victim to when trying to navigate the world of tax. For those organising finances this year, here are a few common pitfalls to be mindful of.
The secret behind GST It’s not uncommon for small businesses to overlook the role they play in collecting taxes. The nearly unavoidable GST known as a consumption tax, is one that the end user is entitled to pay, with the role for businesses simply being to collect it and pass it on. However, for small business owners with tight cash flow, it’s easy to see that money as their own. A great way to avoid the mix up is by creating a bank account for solely transfering GST money into. Typically, GST over the past year will be pretty consistent, making it easy to work out a weekly sum that can be put into the GST account each week. This will ensure that there’s always GST on hand to pay when it’s due.
It’s not uncommon for small businesses to overlook the role they play in collecting taxes. The nearly unavoidable GST - known as a consumption tax - is one that the end user is entitled to pay, with the role for businesses simply being to collect it and pass it on. However, for small business owners with tight cash flow, it’s easy to see that money as their own.
PAYE and Holiday obligations Pay-as-you-earn (PAYE) tax and employee holiday pay are can easily be calculated incorrectly, causing serious implications by the end of the financial year. This is, in large part, due to the fact that this money is considered part of an employee’s wage. If paid incorrectly, it can be classified as theft. Similar to creating a ‘GST-only’ account, a good way to stay on top of PAYE and holiday obligations is to work with an accountant to put the necessary funds away each pay cycle. These funds will account for employees’ paid days off work including annual leave, public holidays, and sick days. Given the large margin for error, more companies are opting to outsource their payroll to reliable online platforms to ensure this is taken care of properly.
Prioritise regular invoicing EOFY is a great time to reflect on the overall reporting processes used in the previous year, and strategise on how best to approach the new year ahead. A large part of this might lie within the overall cash collection and invoicing process. This holds especially true for small businesses in the trades sector.
Dan Pollard, Founder, Fergus
such as GST organisation and holiday and PAYE planning, much easier to stay on top of. Tax management for small businesses is no easy feat, and has the potential to become quite complicated when factoring in the changing government subsidies, employee wages and business requirements. However, organising finances more proactively throughout the year can prove beneficial in the long-term. That mindset, coupled with the right tools and financial experts will ensure that business owners aren’t entirely overwhelmed by the time tax season rolls around. About Dan Pollard, founder of Fergusjob management software for trades and service businesses Plumber turned tech entrepreneur, Dan launched Fergus in 2014. Having done the hard yards as a plumber for over 20 years, Dan was determined to come up with an easier way to manage the end-to-end operations of his trades business.
As a rule of thumb, it is crucial to ensure that invoicing is completed on a daily basis. This will make the rest of the financial logistics,
www.elevatemagazine.co.nz
11
Working smarter, not harder By Rosie Duff
Construction projects heavily depend on timeframes and budgets to keep the wheels turning. Time is money, and money is time, after all. Historically, an important element of tracking time on construction sites is the timekeeper, an individual who handles the recording and reporting of information on workers’ labour hours and work rates. However, in more recent times, cloud-based software
has been touted as the latest and greatest for project timekeeping. Indeed, you can say a big farewell to good old paper timesheets and monotonous digital spreadsheets. All but removing human error from the equation, this timekeeping solution means you’ll always be working with the
Bryans Tyres Ravenswood MOBILE TYRE SERVICE
TYRE SHOP RAVENSWOOD
Ravenswood only 100% locally owned and operated tyre dealer Bryan’s Tyres Ravenswood has been locally owned and operated for over 23 years. Bryan’s Tyres Ravenswood is a full-service tyre dealer, with a top quality range including Hankook, Laufenn, Linglong, Triangle, and many more. With great suppliers, we can serve all your tyre related needs; including truck and bus tyres, agricultural tyres for tractors and machinery, passenger vehicles, all the way down to tyres for your wheelbarrow.
TYRES SAVE YOU MONEY, AND CAN SAVE YOUR LIFE 03 313 7323 | Unit 2 No6 Lilburne Street Ravenswood | www.bryanstyres.co.nz
12
www.elevatemagazine.co.nz
TOTAL DOOR & GATE SOLUTIONS Call 0278007687 or email n8sgates@gmail.com 4 Free measures and quotes 4 Custom made sliding and swinging gates 4 Gate automation 4 Residential door repairs & servicing 4 Commercial door repairs & servicing 4 24/7 emergency repairs 4 Fencing 4 New door sales 4 Residential (garage) door servicing and Repairs
Using a timekeeping solution completely removes any such doubt from either parties’ mind, as it allows you to calculate all of your costs accurately.
most-up-to-date data. If you already use inventory, accounting or other methods, you can integrate your project management and time tracking software for a complete, end-toend business solution. But why would I want to use a time-keeping software at my construction firm, you ask?
Well, do you ever find yourself underbilling clients for the time it takes to complete a project? Or perhaps you’ve had to deal with a customer suggesting that you’re guilty of inflating your hours on the job? Using a timekeeping solution completely removes any such doubt from either parties’ mind, as it allows you to calculate all of your costs accurately. As time goes on, you’ll have a better picture of how long each different job actually takes, so you can price your quotes accurately. Timekeeping software is also an effective tool to help your team to stay on track. Try assigning a certain number of hours to each job, and then activate an alarm for when that time is nearly up. If the
job’s done in that timeframe – perfect. If it’s not, note it down, give a brief reason why for your records, and adjust accordingly. This simultaneously adds value for your client since they can now see details about the time taken to complete their project, as well as a breakdown of costs and hours, which helps them forecast their budget. With a timekeeping software, you can also keep healthy tabs on your business, by tracking who has been working on what job, and how long it has taken them. If you’re currently trying to implement an online time tracking system, but not quite sure where to start, Workflow MAX have published their three biggest tips for navigating the transition period:
1. You can’t expect your team to be enthusiastic about a new system if you’re not on board yourself. You need to lead your team to success by adopting the new time tracking software with gusto, and they’ll quickly follow suit. 2. Sit down with the team and run through how different your quoting, invoicing and project management will be with the new system, and show them how this data can be reported on to give you all a clear picture of how the business is performing. 3. Any time a client compliments you on the benefits of the new system, pass this praise on to the team. Seeing the difference it makes to the client can really help some stragglers to pick up their game.
Approachable, honest and effective employment law advice. We are employment law specialists passionate about getting you the best possible result.
www.pblaw.nz Phone 027 431 7847 paul.shamrockpaint@gmail.com Shamrock painting LTD
(03) 222 2385 paul@pblaw.nz
6/27 Tyne Street, Addington, Christchurch 8011 www.elevatemagazine.co.nz
13
Risky business
What happens when your building company goes down the slippery slope? If you’re doing anything more complex than home handyman jobs, then construction is a risky business. If you have to commit to a fixed price on bigger new builds, renovations, or infrastructure projects, then you run the risk of having under-priced the job. If you are doing it on a cost reimbursement basis then you run the risk of major budget blowouts. Either of these can result in tensions with your client and ultimately unpaid invoices and expensive disputes. Sometimes these make such a big hole in your cash flow that you can’t pay your bills as they fall due. And when you get to that stage, technically you are insolvent. When you become insolvent, several things typically happen. Your subbies withdraw their labour, your suppliers put you on stop credit, and both of them hound you for payment. Your bank and landlord get twitchy. You can’t progress the build as promptly as you need to, which causes your client to stop paying. You use deposits and progress payments from newer projects to pay the suppliers and subcontractors on the problematic ones. And your more aggressive creditors serve statutory demands on you. What is a Statutory Demand? It is a form that your creditors can give you under the Companies Act that gives you 15 working days to pay their debt, otherwise your company is deemed to be insolvent.
14
Failure to pay in time enables the creditor to apply to the court to put your company into liquidation. That takes a few months to achieve, and there are various defences you can raise, but the application to liquidate your company becomes public knowledge at a very early stage. You can take comfort in the fact that statutory demands can only be used for undisputed debts, so unless you have conceded that the debt is payable, then you can always dispute it. But in the meantime, if you want to stop the word getting out then you only get 10 working days to apply to the court to shut the whole thing down, and that costs a lot. What else can happen to you when you become insolvent? When your bank learns of your difficulties it can put your company in receivership. That means that all your company’s income is syphoned off until the bank’s debt is paid, and usually liquidation follows after that. Your bank, your landlord and some suppliers will hold personal guarantees from you, and they will call those up if your company defaults in payment. You might be comforted by the fact that you have your personal assets in trust, but they can still bankrupt you, in which case you lose a lot of freedom and most of your non-trust assets.
The consequences of liquidation What are the consequences of the liquidation of your company?
www.elevatemagazine.co.nz
Well for a start, you lose control of it. The bank and any other secured creditors take most of the assets, and the liquidators convert the rest into cash. The liquidators distribute the cash to the preferential creditors (themselves, the employees, the IRD, etc.) and any surplus to the unsecured creditors. The company then ceases to exist. What else can the liquidators do? They can terminate any unprofitable contracts, and they can bring to an end any claim against the company and prevent anyone from suing it. In certain circumstances they can group all your companies together and combine their assets. They can call up your shareholder loan account, and if you have looked after yourself or any particular creditors at the expense of the other creditors, they can reverse those transactions and claw back any payments made in the six months prior to liquidation while the company was insolvent. What’s more, they can take action against you if you have breached any of your director’s duties under the Companies Act. That is exactly what happened in two construction company collapses in New Zealand, one of which was massive (Mainzeal Property and Construction Ltd) and the other relatively minor (Debut Homes Ltd). They illustrate that directors can be held to account no matter how large or small the company is. The Debut Homes case went all the way up to our Supreme Court, and Mainzeal was the
subject of a recent judgment from our Court of Appeal. This is what we can learn from them.
Debut Homes v Cooper Debut Homes was a residential developer, and Mr. Cooper was a shareholder and the sole director. By October 2012 he knew it was in trouble, and the shortfall to the IRD was likely to be $300,000. Notwithstanding this he elected to complete all current projects that the company was engaged in. To be fair to him, he tried very hard to salvage the company, but it was all to no avail. seventeen months later the IRD got the company placed into liquidation, and by that time it was owed $450,000 in GST. Debut had completed and sold various homes, but Mr. Cooper decided where the proceeds went. He favoured the secured creditors who were holding personal guarantees from him, as well as his family trust, at the expense of the IRD. As a result, and because he had breached three of the directors’ duties under the Companies Act, he was ordered to pay $280,000 into the company, and $280,000 of the secured debt owed to the family trustees became unsecured instead. This was on top of the court costs and legal fees he had already incurred. The Court said that once he knew Debut had no hope of returning to solvency and there would inevitably be a shortfall to one or more
creditors, Mr. Cooper should not have decided to continue to complete the developments. He could have put the company into liquidation. He could have invited the BNZ to put it into receivership. Or he could have gone for a creditors’ compromise, a scheme of arrangement, or a voluntary administration.
meaningful and realistic steps to turn it around. They could take some time to explore all realistic alternative courses of action to try to avoid an insolvent liquidation.
The Mainzeal case was a little different from Debut Homes, in that the company could have been salvaged if the directors had acted decisively.
If they were actively engaged in seeking advice and attempting to address the company’s problems, they could not be criticised and would not be exposed to liability. But the time to throw in the towel was when all reasonable options had been exhausted and it was obvious that there was no reasonable prospect of the company pulling through.
The Court of Appeal acknowledged that directors could allow their company to continue trading while technically insolvent for a limited time, but they had to take
I expect both of these cases will serve as a wake-up call to directors of large building companies, particularly professional directors who don’t have a fortune tied up in the
The Mainzeal litigation
company and who have plenty of opportunities to earn a good living elsewhere. Those directors are likely to pull the pin earlier than smaller owner/operators. But for the smaller owner/operators, I can’t help thinking that these are unrealistic expectations of human beings who are desperate to salvage their only source of income and everoptimistic that their fortunes will change given enough time.
Geoff Hardy Auckland commercial lawyer
Geoff Hardy has 46 years’ experience as a commercial lawyer and is a partner in the Auckland firm Martelli McKegg. He guarantees personal attention to new clients at competitive rates. His phone number is (09) 379 0700, fax (09) 309 4112, and e-mail geoff@martellimckegg.co.nz. This article is not intended to be relied upon as legal advice.
We have many success stories where people have thought marketing is a waste of money, but have finally found something that gives them a transparent Return on Investment. If you would like to be our next success story, please email: enquiries@fatweb.co.nz We have offices throughout New Zealand and can discuss your needs over the phone or by Skype. Don’t let another year go by without truly discovering what digital marketing can do for your business. With years’ of experience and having delivered outstanding results, we have some of the best digital experts in the business.
form of advertising you can measure, then increase or decrease, so you can manage your workflow accordingly! You’ve probably heard people talk about digital marketing, Google AdWords, online traffic, SEO and social media. Then on top of all that, you need to have a lead generating web presence with good traffic etc. This can sound complicated – but it doesn’t have to if you talk to the right people.
Let’s start with the basics
We are so confident, that if you aren’t 100% happy after the first month, you won’t pay a cent for the management fee. And if you mention this ad, set-up is free – a service other companies charge up to $3,000 for. FREE call tracking, which means you can actually hear recordings of the phone calls coming into your business to see if your staff are doing things correctly or if they need more training. This tool can make a massive difference to the FAT on your bottom line. Available to the first 25 people who book a consultation.
With 15 years’ experience - we know what we’re doing. Call 0800 FATWEB, or email enquiries@fatweb.co.nz to book a FREE consultation.
Right now there are people looking for a business just like yours. However, if you don’t have AdWords, there’s a very good chance they’ve just clicked one of your competitors’ websites. Most businesses would benefit from Google AdWords. It’s simple to set up, it’s fast, you set the monthly budget, and you can see the results immediately. Included is a complimentary call tracking service to measure daily results, plus you get a monthly report that’s explained in as much detail as you like.
0800 FATWEB | www.fatweb.co.nz
www.elevatemagazine.co.nz
15
Supply chain strain By Megan Dunn
Supply chain issues are certainly not a new phenomenon for the infrastructure and building world. However, since the emergence of COVID-19 supply chain strain has become heightened to entirely new levels, wreaking havoc in the industry- especially all the way down here in little old New Zealand. Being one of the most remote island nations in the world does have its’s advantages on many occasions however, this is not
nation that lies thousands of kilometres from its overseas markets, so we need to make sure our national supply chain and its international connections are as efficient as possible,” she told Newsroom. “We’re a small nation with limited resources, so our infrastructure investments need to be well thought out and well used, in order to deliver value.” The infrastructure commission recently established that freight and supply chains are at the centre of their recent draft strategy for the government.
one of them. Getting goods from point A to point B tends to be easier when there are not huge bodies of water and continents between the two.
Ports of Auckland chair, Jan Dawson, acknowledges the challenges New Zealand faces in these stressful circumstances. “New Zealand is a tiny trading
“Our nation will benefit if we can create an infrastructure plan that enjoys cross-party support and lasts beyond the terms of individual governments,” Jan says.
Concrete specialists in Christchurch • Driveways • Earthquake Repairs • New Home Specialists • Patios & Paths We are a locally owned and operated company serving the Canterbury Community for over 20 years. We specialise in Driveways, Patios and Paths for new builds and existing homes. Contact us now for a free measure and quote.
Freephone : 0508 UR DRIVE (0508 873 7483) Email: sales@affordableconcrete.co.n www.affordableconcrete.co.nz z
16
www.elevatemagazine.co.nz
“The Commission’s evidencedriven approach and long-term thinking is very positive in this respect, and bodes well for the future.” The long-term strategy comes just at the right time as frustration mounts over export and import delays that have seen companies and our economy as a whole lose out on millions of dollars’ worth of goods- stuck on container ships unable to dock in our ports. The draft strategy outlines “Global supply chain disruptions have been common, with widespread impacts on global airports and air freight. “This has added to the cost of freight, increasing lead times and lowering inventory levels. Many of these impacts are expected to continue for some time. For many
suppliers, traditional models of consumer shopping have been replaced with home delivery,” it says. “Maintaining security of supply within often remote and geographically challenging parts of the country is important to all New Zealanders. Road and rail transport will remain fundamental in connecting our regions. However, digital and mobile connectivity are also becoming essential. Moving data and information will become as important to the regions as moving energy or water.” The Ministry of Business, Innovation and Employment (MBIE) recently published the Building and Construction Sector Trends Annual Report 2021 (Report). Their data on construction materials and products are as follows:
We’re a small nation with limited resources, so our infrastructure investments need to be well thought out and well used, in order to deliver value. Supply chain: COVID-19 has had a devastating impact on the global supply chain. This has largely impacted the construction sector given a significant proportion of New Zealand’s construction materials are imported. GDP: The construction sector is a major contributor to New Zealand’s economy, contributing 6.7 percent of total GDP in 2019. The sector was the primary contributor to both New Zealand’s decline in GDP following the pandemic, and its rebound in early 2021.
Key trends in materials and products includes: • Sheet metal becoming the most popular roof cladding material • Weatherboards becoming a popular wall cladding material • Timber remaining the most popular material for wall framing and floor joists • Fibreglass being the dominant insulation material for walls and ceilings.
QUALITY KITCHENS AND JOINERY TO SUIT ALL STYLES AND BUDGETS Here at The Joiner Shop we pride ourselves on providing quality joinery to suit all budgets. We design, manufacture and install a wide range of joinery including kitchens, wardrobes, laundry, bathroom joinery, stairs and much more. We are locally owned and operated and have proudly been serving the Kaikoura community and further afield for the last 20 years. We can help you refine your ideas to provide the best practical solution for your home or project.
Our joinery is not mass produced and our cabinetry and timber joinery is made right here in our workshop in Kaikoura. We can also help with other aspects of your new build or renovation, be it garage doors, internal doors or glass showers. So contact us today to get your project underway. The Joiner Shop are the proud winners of the best kitchen under $20k award at the National Master Joiners Awards 2021.
The Joiner Shop Kaikoura 03 319 5562 info@thejoinershop.co.nz www.thejoinershop.co.nz 19 Beach Road
www.elevatemagazine.co.nz
17
Information risk
Mitigating the effects of poor-quality digital documentation The COVID-19 pandemic has heightened the risks for the construction industry at large. As issues compound and organisations struggle, business leaders are driven to consider tangible ways to reduce risk across the board. While digital transformation once presented a way to gain a competitive edge, now software solutions spell the difference between success and failure, providing the means to successfully complete projects and dramatically reducing the potential of costly disputes. This was the main consideration of our Payapps digital industry think tank, attended by more than 150 senior business leaders working within risk and construction across A/NZ. The online event tapped into the minds of industry leaders and considered how we can de-risk the construction industry in real, practical and effective ways.
Understanding risk: billions lost, the flow of information, having a single source of truth A survey of construction industry members in A/NZ by Russell McVeagh, found that 61 percent of people predict an increase in the number of disputes over the next two years, with the most likely cause expected to be poor quality documentation. Echoing this sentiment is HKA’s recent analysis of 1,185 construction projects globally. The researchers found that
18
extensions of time total six centuries, and the cumulative value of sums in disputes exceeds US$48.6 billion. To move a little closer to home, a CRCCI study stated that disputes cost the Australian economy approximately $7 billion a year, adding six percent to the overall cost of each project. These astronomical figures represent huge potential for the construction sector if we’re able to reduce the number of disputes that arise. Imagine if this money could be funneled back into development, people and technology. But how exactly can we make the shift? We can’t control the quality of work completed, but what we can do is reduce uncertainty, misinformation and, by extension, unnecessary tension. Within the construction industry information is valuable, often withheld and treated with secrecy for fear of it being used against its owner. If we can get people looking at the same information and bring differences of opinion to the fore a lot earlier with better data management, then we have a way forward. Ultimately, it comes down to having a single source of truth. In our view, there has never been a greater imperative for contractors and subcontractors to understand the source of the information they are working from - that is, the integrity of the data they are gathering and acting upon.
www.elevatemagazine.co.nz
Clearer and more equitable contractual relationships, and collaborative and streamlined information frameworks, will lead to better risk management practices and a brighter future for the industry. I hosted a de-risking construction think tank where David Glinatsis, Solicitor Director at construction law firm, Kreisson, shared a legal perspective. Working on the front lines in construction law since 1995, Glinatsis has a deep understanding of the issues the industry is facing, and how that feeds into various aspects of the law from contracts to dispute resolution. On the importance of having a single source of truth, Glinatsis says, “What we look for in preparing a case is provable material based upon evidence, and that evidence has to be tested against the narratives of the witnesses as well as against the documents. “Sometimes we must go back into the documents and establish their provenance - how the document was created and on what source material. “There may be issues around this, for instance people leave projects and all the institutional knowledge invested in that person is potentially lost. Capturing information and having documents in a single place provides us with the assistance that we need. It’s very important to know that we can have confidence in that process.”
What can be done: Manual processes versus software designed for construction The construction sector is known for relying on traditional tools such as Excel to track and manage projects, and this is one obvious way organisations are opening themselves up to risk. It’s a well-known fact that 88 percent of Excel spreadsheets contain errors. Spreadsheets serve their purpose and can be functional for construction companies, but they are also very limited in their ability to accurately log and track important and actionable data. In addition, using spreadsheets can lead not only to error rates, but lack of visibility, lack of consolidation, lack of consistency and lack of control. In a sector that relies heavily on Excel to track important data, from project dates to payments, it’s simply not good enough to ignore more secure alternatives. A more robust and reliable source of truth would better protect contractors and subcontractors and reduce the level of human error associated with more traditional methods. Advancements in digitisation has let to technology solutions designed specifically for the construction industry. Software designed to aid the daily processes of contractors and subcontractors offers several benefits. These tools ensure progress of a project is managed and tracked in a very visible way, including certain data entries enforced to ensure completeness of information. They can offer reliable consistency of form with auto-generated payment
schedules and automated calculations, deadline monitoring with reminders and reporting, integrations to prevent cross-system gaps, an audit trail of user actions and alerts on process failures. Notably, these tools present vastly improved visibility and transparency and the potential to significantly reduce disputes caused through errors. They can remove the need to check signatures on paperwork, can ensure there is one repository of information, and eradicate the ability to edit, duplicate or share project data without permission. Overall, working from the same set of numbers means that differences are obvious earlier on, and necessary discussions can be had. As we like to say, it’s better to have a small disagreement early than a big disagreement later. I asked David Glinatsis what this
documentation and information means that those disputes can be dealt with early - because little things become big things, we know that from experience.”
meant from a legal standpoint. Here’s what he had to say: “As perceptions are exchanged in a narrative, down the line those perceptions potentially become distorted.
Take a step towards a brighter future
“To test what witnesses say, we look at what the available documents say, how those documents were compiled and where the documents are stored. It’s not unusual to have various repositories and parallel streams of communication. “If there is a single source of information, we can have greater confidence in the integrity and completeness of the available evidence and have comfort that our preparation of legal and factual positions can be based on accurate and complete information. “Also, if there are disputes that arise efficient access to
We see the pandemic as a catalyst for change in the construction sector, prompting organisations to update their systems and processes to move closer to having a single source of truth and, as a result, reduce the risk of misinformation and disputes claims.
Tony Simonsen Chief operating officer Payapps www.payapps.com
Software tools designed for the construction sector help teams to manage progress of projects in a very visible way from start to finish, helping to plan, run and manage every facet from payments calculations to daily progress updates.
WE SUPPLY, ERECT & DISMANTLE SCAFFOLDING THROUGHOUT CANTERBURY. CANTERBURY OWNED & OPERATED
WE SUPPLY SCAFFOLDING FOR: • Residential & Commercial - New & Existing • Builds • Building Maintenance • Exterior Painting • Construction • External Inspections • Installations • Repairs & Maintenance • Rebuilding • We can supply your nets, wrap & fencing
Contact us today to discuss how we can meet your needs.
PHONE 0800 24 24 72 FOR A QUOTE TODAY! www.actionscaffolding.co.nz www.elevatemagazine.co.nz
19
Quality air conditioning solutions Quality Building Services Limited is a NZ owned and operated company that provides commercial and industrial air conditioning, mechanical and ventilation solutions. Services include design and installation, IQP inspections, preventative and proactive maintenance services, energysaving assessments and implementations, project management services, peer reviews, fault finding, repairs, and electrical services. QBS has been around since 2011 and is based in Christchurch. With the current climate change and environmental changes, air conditioning and ventilation systems are essential.
The team is very hardworking and believes in providing high-quality services, installing correctly the first time, and always putting the customers first. The team delivers exceptional services making sure customers get the best possible outcome. QBS wants to make sure customers are satisfied as they take the time to listen to the customer’s conditions, requirements, and expectations.
The team also makes sure installments are as environmentally friendly and affordable as possible because the company wants to do its part in making a positive change in the world.
The staff is always committed to working within a safe environment.
QBS also install brands that are designed for New Zealand’s conditions and are locally sourced.
To get in touch please phone Eddie Garden either on (03) 365 8943 or 027 438 1440, or email on eddie@qbsl.co.
The fully-qualified team has a lot of HVAC experience which ranges from private/domestic installations and services to manufacturing various large sites and businesses. Skills also include design, build, and installation from the get-go to infrastructure maintenance refreshes and ongoing service.
QBS is a member of Site Safe and the whole team is Safe Site registered.
Opening hours start from Mon to Thurs from 8am to 4pm and Friday from 8am to 3pm. Head to 3/308 Wilsons Road, Opawa in Christchurch. Visit the website for more information www.qbsl.co.nz
100% New Zealand owned and operated
We provide commercial and industrial air conditioning, mechanical and ventilation solutions including • Design and Installation • IQP Inspections • Project Management services • Preventative and proactive maintenance services • Energy saving assessments and implementations • Peer reviews • Fault finding and repairs • Electrical services
Phone: (03) 365 8943 • Mobile: 027 438 1440 • Fax: (03) 365 8946 Email: eddie@qbsl.co • www.qbsl.co.nz 20
www.elevatemagazine.co.nz
EXPERTS IN CAR RESTORATION HIGHLY EXPERIENCED • EYE FOR DETAIL EFFICIENT & RELIABLE
For a flawless finish, call Panelcraft Auto restoration today.
03 308 5238
M: 027 283 1513 | E: info@panelcraftltd.co.nz
104 South Street, Ashburton SERVICING CANTERBURY & BEYOND 2 SALVAGE TRUCKS & A 4WD
24/7 TOW M 027 431 8598
/panelcraftautorestoration panelcraft_vehicle_restoration
www.panelcraft.co.nz www.elevatemagazine.co.nz
21
Four mindsets separating
successful business owners from the rest If you’re like most tradies and have a lot on your plate right now, it’s easy to forget about how your mindset impacts your success and simply go through the motions every day - ticking off your long list of to-dos. You want to be making progress, but it feels like you’re bogged down by what’s urgent, and not necessarily getting to what’s most important. So, how can you ensure you’re on the right track and progressing towards where you want to be - such as running a thriving, growing company with an amazing team and reputation that is second-to-none (with plenty of space for regular family time and holidays)? Start by understanding these four mindsets that separate successful business owners from the rest.
1. They take responsibility for the big picture Hal Elrod says “The moment you accept total responsibility for everything in your life is the day you claim the power to change anything in your life”.
22
It’s true; when you don’t take total responsibility for something in your business, then you’ve given up the power to change that thing. It’s unlikely to then go in the direction you want it to. Ever started a job and took ownership but a few things got away on you… like when you discovered there were a few extras involved that were not allowed for in the quote, but it was just easier to carry on and deal with it later? In the end your margins disappeared and it was too late to negotiate with the client coz the job was finished. Taking total responsibility (even when it means having the hard client convos in the middle of a job) saves a whole lot of headaches later. Another big one is taking complete responsibility for your financials. This means consistently being ahead of the game: Knowing exactly what’s coming in, what’s going out, and what’s left. Yes, it’s a good time to be in the trades right now - but good times don’t necessarily lead to a better business. Even when you’ve got more work coming in than you can handle, you still need to be focused on building the fundamentals of a strong business. Ask yourself two important questions: • What’s out of control to fix
www.elevatemagazine.co.nz
right now? (e.g. cashflow there’s a whole lot of debtors you haven’t followed up and that’s why you’ve got no money) • What are you letting coast by that you need to get control of because it’s going to bite you in the future? (e.g. your foreman is being difficult). If you can really get a handle on those loose ends, when you get to the end of the year, you’ll be much happier with the results.
2. They make financial decisions based on the ROI not the cost Fact: Not all costs are the same. When you make a financial decision, it can either be seen through the lens of it being a cost or an investment. For example, implementing new project management software will cost time and money initially. But will save you time and improve margins and control in the long term. Therefore, just viewing it for its initial cost could hold you back from investing in something that would later benefit you. The more growth-focused approach is to analyse your financial decisions based on the ROI, the overall effect. You gotta think: For what I put in, am I getting a greater return back? Making financial decisions in this way can save time and frustration, and play a great role
in taking your business to the next level.
3. They fixate on their goals but are flexible in their approach Any significant goal will have curveballs along the way that try to shunt you in a different direction. The winning attitude is to be firm and fixated on your goals, but also to be flexible in how you achieve them. Imagine a key staff member has left and you need to find a great replacement. It’s hard to find staff right now. Thinking outside the box might mean training an existing team member up into the role, or offering to pay moving costs to attract someone outside the region. There are always going to be turns and bends in the pursuit of our goals. But it’s not an excuse to stop. Instead, it’s a reason to find a different way. As Ryan Holiday says, “Stop looking for angels. Start looking for angles.” Where are you currently stuck in your business? What isn’t working? Spinning your wheels and hoping things will improve might not be the best approach. Even if you’ve had success in the past, what’s gotten you to point A might not necessarily get you to point B. So, look for a different way. Find a new strategy. Create opportunities and get after the results you really want.
There are always going to be turns and bends in the pursuit of our goals. But it’s not an excuse to stop. Instead, it’s a reason to find a different way. As Ryan Holiday says, “Stop looking for angels. Start looking for angles”.
4. They don’t expect themselves to have all the answers
are hitting up against the ceiling of achievement, you’re missing a person”.
Tradies sometimes think: There’s no task too big to handle if I just grind it out. However, when it comes to nailing down the nittygritty of your business, you’ll run into a problem: You can’t read the label from within the jar.
It shouldn’t be a surprise that a different set of eyes sees different things. So, stop and think: How are you taking advantage of different eyes and minds in your business strategy? Do you have a different set of eyes on your financials? Have you got other minds working with you to help take your business to the next level? Having someone who you regularly sit down with to go over various aspects of your business will force you to show
Remember: Take responsibility for the big picture. Make financial decisions based on the ROI rather than the cost. Be flexible in how you get to your goals. And don’t go it alone.
Daniel Fitzpatrick Next Level Tradie
If you have trouble with any of these areas, contact me for a free online chat to see how I can help you fast track your way forward. Book a time here: www.nextleveltradie. co.nz/nextstep.
BUS I N ESS D IR E T
W
The mindsets of business owners who succeed and those who don’t are very different. Make sure you can say you’re on the right side!
C
LO
L CA
Let’s wrap this up
U
M
P
ON
TO YO U R
RY
NE
O
J
How often have you seen someone stuck on how something’s going to work, but then someone else has come over and almost immediately found the solution? As billionaire real-estate investor Gary Keller says, “Any time in your life you
up and think strategically. Which will ultimately help you move forward and stay the course. So, take advantage of it!
W W W. L O C A L B I Z . N Z
www.elevatemagazine.co.nz
23
First Class Accounts
A New Zealand accounting and business advisory business, First Class Accounts, offers tax and accounting services, business advice, payroll and HR, bookkeeping, company structuring, and cloud accounting for those who need help in those areas. The team helps various businesses like contractors and tradespeople, people buying and/or selling a business, people wanting advice on building wealth through various ways of using financial products (wealth creation), and family businesses. Tax and accounting services include providing individual plans and models for each client to ensure they receive top results.
The team provides an exceptional accountant who will offer things like preparation of annual financial statements, filing your IRD returns such as Income Tax, GST, and FBT, financial and management accounting, taxation advice to maximise tax efficiency and business structuring, taxation compliance, and reporting. The team also offers business advice and restructuring with
expert knowledge and frameworks to answer your questions like “where is my profit?” Payroll can take a lot of your time and getting it wrong can cost you money. If you have payroll pressure, First Class HR Payroll reduces the stress payroll can cause by ensuring payroll is done correctly. Bookkeeping is important for your business, the team will support you by looking at accounts payable, debtor management, payroll, cash flow reporting, cloud accounting support, and job costing. Cloud accounting is constantly changing with technology, it’s
essential to manage the business from anywhere at any time. This service includes learning about banking, invoicing, realtime view of your business, reporting, additional support from your accountant to focus on your business without any hassles. To get in touch with your local First Class Accountant, contact Greg Coleman via greg. coleman@firstclassaccounts. co.nz or 021 837673 . Or, Nisar kaskar on nisar@ firstclassaccounts.co.nz or 027 4380443 Alternatively, head to either of our offices at Unit 3, 77 Williams Street, Kaiapoi or 268 Lincoln Road, Addington.
First Class Accounts FIRST CLASS ACCOUNTS ACCOUNTING AND BUSINESS ADVISORS
Get back to doing the things you love 03 327 9494 | www.firstclassaccounts.co.nz 24
www.elevatemagazine.co.nz
Windscreen Solutions is Christchurch’s premium windscreen solutions service. Windscreen Repairs and Replacements available 24 hours a day, 7 days a week, replacing cracked or damaged windscreens to the highest standard. We offer superior quality workmanship for all Truck, van, Bus, Motorhome, Car, and digger windscreen repairs and replacementwe really do it all. We can arrange all insurance work to make the repair installation as easy as possible for our clients. What really sets us apart from our windscreen repair businesses is that we are a mobile business. We can come to you so
that you can carry on with your work while we fix up your vehicle, it really couldn’t be more easy for you! The convenience we offer is unmatched. Our expert windscreen and window repair team will be able to assess the damage to your vehicle glass, providing you with sound advice on what the ideal repair option would be for you. Whether it is a windscreen chip, crack or scratches, we at Windscreen solutions can solve your problem. We offer low-cost professional services with the highest possible standard backed by a guarantee. We pride ourselves on quality workmanship, excellent customer service, and handling your problem in a timely fashion, erasing all hassle for you out of the job. We have free quotes, emergency service, insurance quotes and guaranteed repairs. If you are unsure what you need call us today for some expert advice for the best solution for your windscreen, we would love to help.
www.windscreensolutions.co.nz Adrian Huisman • P: 021 399 917 • E: info@windscreensolutions.co.nz www.elevatemagazine.co.nz
25
BEFORE 26
www.elevatemagazine.co.nz
AFTER
Buyers and Sellers of Recycled & New Building Materials Less Waste, More Purpose You’ll find everything from timber flooring to coloursteel roofing at Musgroves and everything in between (including the things you didn’t even know you needed).
www.musgroves.co.nz 3 Musgrove Close, Wigram, Christchurch Phone 03 322 7922
www.elevatemagazine.co.nz
27
Hidden costs
When looking to build your own home or renovate your existing home, if a quote looks too good to be true, chances are it probably is.
Asbestos removal
More often than not builders will leave out certain costs to bring their overall quote price down to secure the job.
Engineering
Here are a few things to look out for on your next quote.
28
When tearing down the old and building anew or when renovating your existing home, asbestos is one to look for. In any home that was built before the year 2000 make sure it has been checked for asbestos. If asbestos is present a specialist team will be required to remove it. These costs can escalate quickly.
The main engineering costs are usually in two areas - structural and foundations. If plans have not been finalised, a ‘PC sum’ will need to be allowed.
www.elevatemagazine.co.nz
For foundations a geo-tech report needs to be provided to the engineer so they can work out what is required for your project to meet, or exceed the NZ Building Code. For the structural engineering, the plans will need to be provided to the engineer so they can determine what size, specification, and spacing of timber or steel frame work is required for your project to meet, or exceed NZ
Building Code Engineering costs are not cheap and can ramp up considerably depending on the complexity of the job.
Temporary services Site fencing, site toilet and a temporary running water supply
are now a basic health and safety requirement on many construction sites and these is usually a week-by-week renting cost.
assume they have priced it as a “flat and level site” which can end up in arguments around the extra costs associated with the build.
you may even need a resource consent, or have to pay a development levy.
Scaffolding is also another big cost to keep an eye on. Waiting for plans/consents to come out of council, and weather and contractor delays, can drag out the timeline of your project, adding to the overall costs of the temporary services.
PC sums
Is your quote GST inclusive or exclusive? That’s a 15 percent difference which on a $600,000 house and land package is roughly $78,000.
Site prep costs A lot of house package costs are associated with a “flat and level site”. If your section is undulated and hard to get vehicles and machinery to, bottom line is it will cost you more to build on. If your main contractor hasn’t been to check out where the project is to take place, you can
Just be aware if the quote has a lot of prime cost sums (PC sums) in it. Some PC sums are to be expected as it may not be possible to have an exact cost at the time, but just check that the PC sums are relevant, and ask other people or professionals that you know in the industry, if the PC sums are enough to cover or close to covering what they are allowed for.
Council fees Check in your quote to see if the main contractor has included any council fees. Council consents maybe required and
GST
In any home that was built before the year 2000 make sure it has been checked for asbestos. If asbestos is present a specialist team will be required to remove it. These costs can escalate quickly.
kcfencesystems.co.nz
SECURITY. FENCING. SOLUTIONS.
ELECTRICAL LTD
RESIDENTIAL • COMMERCIAL
Corey Hughes
Call or Email us now Freephone 0800 4 A Fence (0800 423 362) Phone (03) 374-3510 Office & Factory: 327 Tuam Street, Christchurch info@kcfencesystems.co.nz
022 677 1695
c.t.hughes@protonmail.com POWER • DATA SECURITY • VENTILATION 24 HOUR SERVICE
www.elevatemagazine.co.nz
29
Keeping track
to continue post-pandemic, according to recent research.
Managing health, safety, and security with visitor management systems The workplace is evolving, and organisations across different industries accelerated their digital adoption and transformation in response to the pandemic, integrating new technology solutions and ways of working. For many companies, flexible working in particular, has provided many benefits to a distributed workforce, letting teams continue to operate and collaborate productively despite geographical distance. This trend is likely to continue post-pandemic, with up to 85 percent of professionals wanting flexible working arrangements
This shift has also created additional challenges in terms of workforce management as people return to the office environment, whether in full-time, distributed, or hybrid capacities. With the number of workers and visitors onsite constantly changing, having a clear understanding of the people onsite at any given time will be crucial for the security, health and safety of staff, contractors, and other visitors. Investing in digital visitor management systems is essential to manage this process effectively, according to Pitney Bowes. Stephen Darracott, vice president and country manager,
Jc Scaffolding Ltd
CHRIST CHURCH BASED SCAFFOLDING COMPANY
0212555256 | jcscaffoldingchch@gmail.com www.facebook.com/jcscaffolding 30
www.elevatemagazine.co.nz
Pitney Bowes Japan, Australia and New Zealand, says “The coronavirus pandemic highlighted the need for visibility and traceability so companies could keep their workers, contractors, and visitors safe while complying with government guidelines and regulations.
and can be the difference when it comes to executing emergency procedures if an incident occurs.
“However, digital visitor management systems can be used for much more than just tracing visitors to office locations.
“For hybrid workers, this can ensure that they are regularly refreshed on emergency procedures even if they usually work remotely.”
“Visitor management solutions play a key role in security by helping to manage and record onsite visitors, even when the face of the workforce changes every day. “Visitor management systems can also incorporate safety inductions for all visitors, which is essential in many workplaces
“Knowing that all visitors have had their safety induction quickly and efficiently is crucial when it comes to compliance and duty of care.
In terms of site security, digital visitor management systems are also an essential barrier of protection for staff, contractors and visitors, especially in light of the pandemic. Some of the most up to date digital systems incorporate
Investing in visitor management systems that capture and store relevant information to a secure database in real time can greatly enhance existing security processes.
infrared temperature scanning features. This lets companies quickly check visitors’ temperatures, notifying relevant staff if an elevated temperature is detected and preventing the person further entry and contact with others on the premises. This feature has been critical to the COVID-19 response for many companies and will assist in keeping workforces healthy in future.
“For many organisations, it’s essential to understand who is on the premises at all times, letting businesses account for everyone in case of an emergency, assess potential health risks, or to manage security risks posed by unauthorised visitors. “Investing in visitor management systems that capture and store relevant information to a secure database in real time can greatly enhance existing security processes,” Stephen says.
M: 027 245 8140 E: j_amatthews@xtra.co.nz PO Box 54, Kaiapoi
Specialists in Longrun Colorsteel, roofing and Guttering Systems www.elevatemagazine.co.nz
31
The 5 largest small business challenges As a biz consultant and regular owner of small business, here’s a snapshot of what I have seen as the most common challenges to operating a small business.
sales funnel alive with live leads which when correctly dealt with can convert to customers and then clients, even to raving fans. The quick fix on this is to have a system and then work the system. Record touchpoints and then follow up. The success is in the follow up and raising awareness of what you can do to help them.
4. Managing workflow If you are really good at #1 and #2, then chances are you’re going to experience times where there’s more work than capacity. Fixing this is partly solved in #3. above, but it needs to go further. No good having great team if they are feeling pressured and stressed. You need a constant, honest and non-judgemental feedback loop.
Martz Witty Witz Endz Limited martz@witzendz.com
and how many debtor days it takes before you have lost all your profit margin on the sale. It’s quite frightening really and not always a long time (depending on your margins).
What is your system to manage debtors’ payments and creditors bills? Are you too soft and let people owe you money outside of your terms of trade? There’s a wonderful calculation you can do that compares the cost of non-paying customers and how many debtor days it takes before you have lost all your profit margin on the sale. It’s quite frightening really and not always a long time (depending on your margins).
1. Getting more customers
3. Hiring the right people
The challenge here is to attract customers of the type you want to have, not just anyone with a pulse!
People and staff are your biggest asset. They can make or break your business.
It’s not enough to place and advert or do a flyer and wait for the customers to roll in.
Short term solutions include flicking out a job description, interview and appoint.
2. Lead generation
Why settle for an employee that is “okay” when you can have a great one for just a little longer wait and working an onboarding system?
Yes, a subset of #1 above, but done correctly this keeps your
Make sure the applicants fit or even add to your business culture.
It’s a regular fundamental part of each and every business day.
32
www.elevatemagazine.co.nz
Most times the staff will have the answers – stop and ask them!
Are there any miracle cures for these challenges? Not really.
5. Cashflow
Mostly it comes to common sense and operating within a system.
Frequently a challenge in all sizes of businesses. What is your system to manage debtors’ payments and creditors bills? Are you too soft and let people owe you money outside of your terms of trade? There’s a wonderful calculation you can do that compares the cost of non-paying customers
The secret is to be rigorous and definitive to everyone who falls into the system. Communication is paramount, with your management, staff, customer and suppliers.
How construction firms can innovate the scheduling process The past year has provided the construction industry with continuous challenges and adjustments, with a critical need to adapt to whatever the future might hold. This has brought about a change in the culturally entrenched attitudes towards project management as organisations see an increased need to modernise their operations. One process in serious need of an overhaul is the schedule. The impact of COVID-19 restrictions on the construction sector in New Zealand caused great delays in many projects and flow-on consequences for subcontractors plans and workflow, colliding with the traditional means of scheduling. Organisations are now focused on uniting all office and field staff to be part of one fully co-ordinated project delivery team. It’s not just the scheduler’s responsibility anymore, but rather the collective team will be working together to manage the planning and scheduling process.
Connect your front office with the field Great scheduling combines the needs of the field with those of the front and back office. It should also consider the number of specialised team members
involved on a project, which grows exponentially as the complexity and duration of construction projects continue to increase. This introduces a lot of intricacies to the process. The more members that are added to the project team, the more mature the schedule should become, adding depth and creating a more thorough plan for all teams. Incorporating metrics around milestones, deliverables, and productivity can co-ordinate and optimise labour, equipment, and material resources both within and across all projects of an organisation. Supply shortages are an ongoing concern, as the lockdowns effectively put a hold on transportation of materials in New Zealand, impacting delivery times. Even when the country is not in lockdown, the supply chain is heavily reliant on the speed in which the overseas and domestic supply chain is able to return to full capacity. The ability to account for material delays in near real-time is essential to maximise project outcomes.
As the construction industry continues to look for ways to improve schedule qualities and project outcomes, organisations should look to incorporate any tools available to them to ensure their organisation is as efficient as possible.
The construction industry pivoted quickly over the past year to remotely manage many aspects of the job (safety, control, risk, etc.). As the adoption of mobility solutions has grown, so has the number of project delivery team members that are involved in the execution process. The concept of the workspace has become fluid, and organisations in the industry are thinking of new ways to effectively digitise more of the workforce while adapting to more mobile and remote working approaches. The schedule needs to be able to quickly account for scaling up and down for more diversified teams, while ensuring everyone is informed and working towards the common project goal.
Garrett Harley Director of product marketing, Oracle Construction and Engineering www.oracle.com/nz
Tomorrow’s schedule today A more co-ordinated and collaborative schedule blends the planning and management of the work. It is inclusive of all team members and unites the critical path (in the CPM schedule) with field task and risk management. A modern schedule also gives businesses the insights they need to efficiently plan, schedule and control both programs and individual projects. As the construction industry continues to look for ways to improve schedule qualities and project outcomes, organisations should look to incorporate any tools available to them to ensure their organisation is as efficient as possible. By evolving the scheduling process to unite all office and field staff into one fully coordinated project delivery team, organisations will have a much clearer road ahead.
www.elevatemagazine.co.nz
33
Modernising our rental laws By Jen Baird, chief executive of the Real Estate Institute of New Zealand
The Residential Tenancies Act (RTA) was introduced in 1986 when the world was a very different place. Most people owned their own homes and only a relatively small proportion of people rented. Fast forward nearly 20 years and more people rent than ever before (around 35 percent), which is why the government announced a number of changes via the Residential Tenancies Amendment Act 2020, most of which came into effect on February 11, 2021. The amendments introduced a number of positive changes for those renting, including a ban on rental bidding, limiting rent increases to once every 12 months, and making rental
properties safer and more liveable for tenants. This has given tenants more certainty than they had in the past.
managers’ decisions around choosing tenants, including tenants who have caused only minor issues in past tenancies.
However, as can be the case with new legislation, there are some changes which have caused concern. The most significant and controversial proposal was the recommendation to end the no-cause 90-day notice. For many landlords, the 90-day notice was only used as a last resort when there was antisocial, aggressive or threatening behaviour by a tenant (or those they associate with). Often that behaviour has a detrimental impact on others living in the neighbourhood.
In the vast majority of circumstances, landlords used “no-cause” termination notices as a way of bringing a tenancy to an end for serious issues. Competent landlords always prefer to have a property tenanted, and would prefer to fix problems raised by tenants and work through issues proactively, so in the past they would have only used the 90-day notice when absolutely required.
The removal of the 90-day no-cause termination notice will influence landlords and property
BAYLEYS ALL OVER
The changes will have already caused huge administrative costs for property managers/landlords over the last several months, plus the time it takes to completely understand the changes, has
RENTAL PROPERTIES
likely meant that some landlords have been deterred from leasing properties at all. REINZ considers a better approach would have been to provide higher exemplary damages, to penalise landlords who abused the no-cause terminations. The other key change causing concern among industry professionals is the automatic conversion of fixed-term tenancies to periodic tenancies. Under this change, tenants have up until 28 days before the end of a fixed-term lease to let the landlord or property manager know whether or not they are wanting to stay in the property and convert to a period agreement.
Need your rental property managed or your farm houses inspected? We are committed to you every step of the way when it comes to managing your investments. Our property management takes the dayto-day out of being a property owner, while helping you achieve your financial goals. Bayleys Property Management is more than just coordinating tenancies and rental payments. It’s about helping you achieve your financial goals. In property numbers count for everything. Bayleys Property Management Mid Canterbury Jacqueline Gilbert 027 886 0179 midcanterburyrentals@bayleys.co.nz Bayleys Methven 03 303 3093 Suite 2, The Mall Bayleys Ashburton 03 307 7377 Westburn Courts, 201 West Street WHALAN AND PARTNERS LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
Res ident ial / Commercial / Rural / Property Se rv ic e s
34
www.elevatemagazine.co.nz
Certifying Plumber & Gasfitter WITH MORE THAN 10 YEARS OF EXPERIENCE Call us Mobile: 022 099 2768 Email: finnplumbingnz@gmail.com PO BOX 92001, Faringdon, Rolleston E www.facebook.com/FinnPlumbingNZ www.elevatemagazine.co.nz
35
REAL ESTATE
What to look for
in a real estate agent Your home is often your largest personal asset so selling it can be both exciting and stressful at the same time. That’s why having an agent that you can trust to help you achieve the best price and conditions possible for your home – all while being transparent and ensuring all parties are comfortable and aware of the processes, will make a big difference. Certain attributes differentiate a great agent from a good agent. We recommend that you look for agents who demonstrate a great deal of professionalism, local knowledge and have a good reputation. Look for someone who understands the kind of people who will be interested in your home. This will help with the marketing of your home and communicating the benefits of your property to potential buyers. Local agents often have a
36
network of potential buyers that they have been working with or regularly communicate with, who are ready and able to provide the best price for your home. Great real estate agents are well connected, therefore asking family and friends if they know an agent they would recommend is a great start; referrals are often the best way to find an agent with a proven track-record, and not just someone who knows how to say the right things at the right time. When asking for recommendations, remember to ask what factors their recommendation is based on. Did they get the level of communication they wanted? Did they think the agent used the marketing spend effectively? Did they manage any challenges through the process well? Agents are usually more than happy to come to your property, share their knowledge and talk you through your options for selling. We recommend meeting a few agents before you choose who to work with. Try visiting open homes they are hosting to understand how they present their vendor’s property.
www.elevatemagazine.co.nz
This will help you get a feel for how they will work to get the best for your property. Take a look online and see how agents are using social media and digital marketing to increase coverage for the properties they are selling. Therefore see what you could expect for your home. Many agents will also use advanced technology to help market and sell your home, which can often reach a broader audience, for example: • Virtual Reality tours or 3D walkthroughs are one of the options that increase the accessibility of an open home to a wider range of potential purchasers in the first instance, particularly out of town buyers • Augmented Reality is another option that can help potential purchasers rework the layout of furniture in the home, so they can better picture themselves and their belongings in the home. Try not to select an agent based solely on their commission fee, but it is important to understand what the fees are. While these do vary by agency, our advice is to choose an agent
Jen Baird Chief executive of the Real Estate Institute of New Zealand
Try visiting open homes they are hosting to understand how they present their vendor’s property. you trust and whose previous work gives you confidence. Great agents can achieve a better price for your property by understanding the best strategies according to different market conditions. At the end of the day, the person you choose is going to be a big part of your life while you sell your home, so it is important that you feel comfortable with them and that you can trust them to get the job done.
www.elevatemagazine.co.nz
37
REAL ESTATE
Managing your property portfolio
Property investors are rotating their portfolios selling off older properties to buy newer ones as they seek to manage their investments against changes to property tax rules and healthy homes standards.
Lodge Real Estate director, Jeremy O’Rourke, says Lodge agents had noticed a trend over the last few months of property investors “rotating” properties in their portfolios - bringing older properties to the market and seeking to buy new ones. He believes this trend is being driven by government changes to property tax rules, which mean
investors will no longer be able to deduct interest payments on their rental properties from their taxable income. Interest deductibility is being phased out until March 31, 2025.
Standards) Regulations 2019 and place specifications around provision of heating, insulation, ventilation, moisture, drainage, and draught stopping in rental properties.
The rule change does not apply to a property which received its code of compliance after 27 March this year, and investors with properties falling into that category can continue to deduct interest payments for 20 years.
Jeremy believes this is also impacting investors’ decisions to sell off older homes. “There are certainly some investors who are choosing to sell
In February 2019 the government announced the healthy homes standards. These standards are now drafted into the Residential Tenancies (Healthy Homes
off their properties and buy ones where this work has already been completed. “We certainly haven’t yet seen people spooked by the OCR increase. This may be because we haven’t seen the full flow through to interest rate rises at the retail banks yet.”
There are certainly some investors who are choosing to sell off their properties and buy ones where this work has already been completed.
BAYLEYS PAIRING TOGETHER FOR A BETTER TOMORROW We’re on a mission for the Christchurch City Mission
Join us at bayleysonamission.co.nz
WHALAN AND PARTNERS LTD, BAYLEYS, LICENSED UNDER THE REA ACT 2008
38
www.elevatemagazine.co.nz
60 YEARS OF GLASS & GLAZING INDUSTRY EXPERIENCE IN CANTERBURY!
INCORPORATES WAIMAK WINDSCREENS & AUTO GLASS TO PROVIDE A TOP QUALITY AUTOMOTIVE GLASS REPAIR AND REPLACEMENT SERVICE
SERVICES
Glass Repairs & Replacements • Insurance Claims Retro-fit Double Glazing • Commercial Glass & Store Fronts Frameless Glass Showers • Glass Splashbacks Glazing For New Builds • Glass Balustrades Glass Windbreaks & Shelters • Glass Canopies Emergency Callout & Board Up Service Windscreen Repairs • Automotive Glazing Services
Working Hours: Monday to Friday – 7:30am to 5:30pm
P: 0800 MGLASS (0800 645 277) E: info@morganglass.co.nz | W: www.morganglass.co.nz www.elevatemagazine.co.nz
39
Oakleys bathroom solutions As the South Island housing market steadily grows, Oakleys Plumbing Supplies maintains its market position with a roll out of new showrooms. There have been several significant events in the South Island in past years that have shaped the construction industry and the housing market into what it is today. The Christchurch and Kaikōura earthquakes, Auckland’s increasing costs of living and the Covid pandemic have all provided opportunities to rebuild, modernise and invest in the South Island. At the forefront of any building project is an emphasis on the most functional spaces: bathrooms. Bathrooms are a place of relaxation and escape, a place to pamper oneself and revitalise and are being paid increased attention during design phases. Oakleys Plumbing Supplies’ four showrooms are sharing in the current building boom. Oakleys’ consultant’s report that customers are not shy about achieving the best results they can, with
40
the demand for top-quality bathroomware and plumbing systems higher than ever. People are not only building for function, there is an aspect of comfort and pride in their projects too. As a result, the Oakleys Group is in the midst of a showroom rejuvenation programme. Both Nelson and Cromwell stores have their state of the art showrooms open with Dunedin’s renovation currently in design and Christchurch to follow. Designed by award-winning designer Davinia Sutton, the showrooms introduce a standard rarely seen in New Zealand showrooms before. The Nelson showroom has nine concept bathrooms, ranging from ultra contemporary to ornate English styling, catering to the region’s new home boom and traditional villas of yesteryear. There is a
www.elevatemagazine.co.nz
powder room with gold accented tapware, a wellness spa and a European suite. There are ensuites and family bathrooms, which are realistically the size and scope of most people’s bathrooms, a working kitchen and wet area where customers can test products.
Designed by award-winning designer Davinia Sutton, the showrooms introduce a standard rarely seen in New Zealand showrooms before.
Visitors to the Cromwell showroom reference the calming and peaceful nature of the space. The layout includes six concept bathrooms designed to introduce both classic and current looks that compliment Central Otago architecture. Working shower displays demonstrate the luxury of overhead showers and body jets. Both showrooms have extensive tapware displays, including from top German
manufacturer Hansgrohe, and the Danish designed Vola range, the latter of which is sold exclusively via Oakleys in the South Island. Davina has created the concept bathrooms with the company’s amazing product lines and teamed them with impressive lighting, and beautiful tile, wallpaper and paint choices to showcase exactly what is achievable in today’s bathroom design world. Oakleys’ dedication to design, workmanship and service has been evident since the company was established in 1875. When Henry Oakley and John Morgan Taylor founded Taylor & Oakley Plumbers Iron and Tinplate Workers, Gasfitters and Bellringers, Christchurch was a newly established city and their products were the preferred fittings by reputable plumbers. Now 145 years later the company proudly maintains its locally owned and operated status with the owner of each branch found on the shop floor every day. This dedication to locals helping locals is at the forefront of the exceptional Oakleys’ service.
www.elevatemagazine.co.nz
41
Combating coastal erosion
block by concrete block Article reproduced with kind permission from Concrete NZ.
Rising sea levels caused by climate change pose a threat to coastlines around the world. Hope is at hand however, in the form of an innovative precast concrete solution made right here in New Zealand. Westlock Concrete Solutions Ltd (WCS), based in Northern Buller on the West Coast of the South Island, decided that it was time to stop retreating and start advancing. With the aim of protecting New Zealand’s vulnerable coastline from the rising tide, the small Kiwi company has designed and constructed a trial seawall of interlocking hexagonal concrete blocks at Hector, 30 kilometres north of Westport.
Background WCS director of sales and marketing, Martin Hill has firsthand experience of the damage caused by coastal erosion. After several attempts at protecting his own property with large boulders, he realised it did not offer a long-term solution. “I was looking for a long-lasting fix,” Martin says. “So, I began to collaborate with a group of local residents, which fortunately included several engineers.” Following much discussion WCS was established, and its collective experience and expertise led to
42
the interlocking block design. As the development process reached the engineering compliance and manufacturing stages, WCS partnered with Busck Prestressed Concrete Ltd, one of New Zealand’s largest and most respected manufacturers of precast concrete products. The outcome was an engineered interlocking hexagonal block, which when combined with the appropriate placement method, creates a versatile and durable structure that offer over 50 years of protection against the unrelenting ocean.
Manufacturing considerations Research and development undertaken by WCS paid dividend during manufacturing and installation. “There is a lot more to the product than meets the eye, and with the help of Busck, we have created a very high-specification marine grade concrete block,” Martin says. Busck acknowledges that making the blocks was relatively simple, thanks to WCS’s attention to detail during pre-production trials. “WCS ironed out a lot of creases during their early development work,” Busck national technical & design manager, John Marshall says. “This combined with their willingness to share information about the challenges they had overcome meant we didn’t have to reinvent the wheel.”
www.elevatemagazine.co.nz
Busck conducted its own trials at its Ashburton factory, which used in-house draughting and 3D modelling capability to experiment with reinforcing content and with different ways of connecting the blocks to maximise resilience.
The community response to the trial wall has been very positive, with plenty of offers to assist during installation, as well as many admiring glances now that it is complete.
“The concrete used in the blocks themselves has a low water/cement ratio and contains micro-silica to ensure compliance with the marine requirements of class C in NZS 3101 Concrete Structures Standard for a 50-year life,” John says.
The local community’s interest has been matched from further afield, with inquiries received from along the West Coast and around New Zealand, a response helped by 1 News filming a story on the ‘clever concrete invention’.
The blocks also have a concrete strength of 45 MPa, a F4/ U3 surface finish, a minimum reinforcing cover of 60 mm, and returns as specified in NZS 3101. “The partnership is working very well, with Busck providing the design certification and manufacturing component, and WSC the concept, installation and marketing,” John says.
Installation and response The trial seawall, located near the tiny West Coast town of Hector, was built in a week using a single 12-tonne excavator. The seawall consists of three different block types (base, standard and top), is five blocks high and 40 blocks long, totalling around 200, two-tonne concrete blocks. There were no issues in terms of gaining consent with the West Coast Regional Council, along with the Department of Conservation, seeing tremendous potential in the system’s ability to combat coastal erosion. Of particular appeal to the council is that the system requires minimal maintenance, unlike the current practice of arranging large boulders to form temporary barriers, which in storm conditions can pose a danger to homes.
Next steps
WCS hopes that the success of the trial seawall will prompt regional, district and city councils to seriously consider the system in plans to address coastal erosion. The return on investment from the WCS system is clear with the value of properties in areas prone to the loss or displacement of land always under threat. Furthermore, the peace-of-mind offered through a permanent solution to coastal erosion also encourages the development of surrounding areas, making for a win-win situation. The economics are bolstered by the fact that Busck can manufacture the blocks at any of its seven facilities across New Zealand, from which transport to site can either be by truck or rail. “Climate change will inevitably accelerate the rate of coastal erosion across New Zealand, creating a lot of stress for property owners and councils alike,” Martin says. “WSC will look to raise awareness of the interlocking block system with territorial authorities and central government as well as amongst civil engineers, to ensure every erosion affected New Zealander has the option of a long-term solution.”
Canterbury Kerb & Concrete Canterbury Kerb & Concrete is filled with concrete specialists for all residential projects. Canterbury Kerb and Concrete (CKC) owner Alan Judd says it’s a thriving Christchurch company operating in concrete placement and kerbing. Concrete is in Alan’s blood, as a second-generation business established by his father in 1965, with over 60 collective years of experience in the current team, all areas of concrete construction are covered. They are well equipped with specialised machinery and operates safely at Red under the government’s traffic light system. Canterbury Kerb and Concrete specialise in all forms of concrete
such as driveways, patios, paths, and foundations, including: • Exposed Aggregate • Coloured Concrete • Plain Concrete • Stamped Concrete • Infill using colour & stencilling. Their large variety of concrete services enables the team to offer complete concrete packages to clients for new builds, or replacement concrete for existing properties.
– a testament to their quality and professionalism.
new concrete or concrete that needs to be replaced.
The team is also the sole concrete contractor to David Reid Homes and Faye Homes in Canterbury.
The team is up-to-date with all the latest trends and offers a free on-site consultation and quote.
The continuing success of the company starts at the top with Alan as the managing director - relying on a well-oiled and experienced team of operations managers and team leaders.
The company also provides full excavation, paving, kerbing, and hardscaping services.
Concrete operations manager Matt Cole has 10 years of experience, great civil practice, knowledge, and ensures multiple customers’ requests and contract deadlines are met on time while quality is maintained.
Canterbury Kerb and Concrete has plenty of repeat business
The company can advise you of all the options available for your
Clients can’t stop singing their praises. Read what some clients have to say on the ‘testimonials’ page of the company’s website: www.ckc.nz/concrete/ testimonials. To get in touch, contact Alan on 021 228 4236, email info@ckc.nz or visit www.ckc.nz. Alternatively, head to the store on 15 Wilkinsons Road, Harewood, Christchurch to chat with the team today.
CONCRETE SPECIALIST FOR ALL RESIDENTIAL PROJECTS
• • • • •
Exposed Aggregate Coloured Concrete Plain Concrete Kerbing Concrete Excavation
Office: 15A Wilkinsons Road, Harewood | P: 0800 024 220 | W: ckc.nz | E: info@ckc.nz www.elevatemagazine.co.nz
43
The “original”
RO Jones Panelbeaters Over the past 30 years, the “original” RO Jones Panelbeaters has developed a first-class reputation for providing not only exceptional vehicle repair services, but services that are orientated around a greener and a more sustainable future. Customer satisfaction is our priority. Indeed, our customers come back to us not only for quality of work, but for who we are and the values we uphold.
Come down and see us today, no bookings necessary. You can trust the team at RO Jones to get you back in your vehicle as soon as possible!
impact on the environment by using only water-based paint, and environmentally friendly carwash and polish.
With a lifetime guarantee on all repair work, we are certain that you will have your vehicle returned in pristine condition. Our workmanship is highly rated by leading insurance companies such as IAG.
Health & safety
So, pop on down to our brand-new offices, just below the Durham Street bridge in Sydenham.
Our stringent health & safety practices are qualified under PREQUAL, a New Zealand based initiative that ensures our workplace is a safe environment and that the team at RO Jones can be trusted to work safely and get the job done.
We are a full service panelbeater. No matter the job, we’ve got you covered. Our skilled team has the work ethic, attention to detail and experience to get any dent, paint work, scratch or collision repaired to the highest level.
We aim to make our customers feel like they’re not walking into a messy workshop, our modern office has been designed to be a relaxed and inviting space for you to come in and chat to us.
44
We are committed to working under strict health & safety regulations by providing a safe environment for our employees to work in.
Our team is excited to continue to minimise our
www.elevatemagazine.co.nz
Services
We return all vehicles fully cleaned and groomed to our customers. Our services include: • Insurance repairs • Loan cars available • Private vehicle repairs • Interest free payment options.
A greener future We strive to be a market leader in using sustainable products by operating under a sustainable business model. Every year that passes, the need to protect our planet increases. From implementing efforts to reduce greenhouse emissions to banning plastic bags, we are already seeing the efforts being undertaken not only in New Zealand, but globally to create a more sustainable pathway into the future. We are committed to being part of that process. All of our cars are repaired using water-based paint imported from Germany and we also use environmentally friendly car polish. We will continue to mould and adapt into the future to develop our efforts to reducing our impact on the environment.
www.elevatemagazine.co.nz
45
Delightful
indulgence
This year Matariki will be marked with a public holiday, but we don’t have to wait until then to make the most of the holiday period. There are some guiding principles behind Matariki we can apply when enjoying all that North Canterbury has to offer. The rising and setting of the constellation Matariki, also known as the Pleiades, signals Māori New Year. Because the time of celebration takes place during the coldest part of the year, Te Papa suggests that Kiwis can celebrate in simple ways like joining loved ones over good food and getting outside – all of which North Canterbury can offer.
Food - Matariki celebrations
often incorporate food because the holiday arrives after harvest and when people would rely on stored and preserved foods to get through the winter. Although some foods we enjoy are dependent on season, we still have access to a wide variety of foods and indulgences our predecessors could only imagine. An example of our comfortable place in history is the Truffle Day Out organised by Black Estate. Unlike the chocolates many of us are familiar with, the truffles you’ll find while taking part in this annual event are a sort of fungus – a delicacy used in fine cuisine. After spending the morning
hunting at Kings Truffles, participants will be gathered at Black Estate to enjoy a five-course lunch and wine pairings. Tickets can be purchased on Black Estate’s website, blackestate.co.nz.
little further than the reach of the city lights to get a good look at the stars. With loved ones close and a few hot drinks in hand you’ll be sure to beat the chill and enjoy the view.
Fun - Of course, Hanmer Springs
Among friends, family, food and drink, Matariki also revolves around the stars. Getting its name from the cluster of stars referred to as Matariki in Te Reo Māori.
is always good for its relaxing pools whether it’s just a day trip or a weekend getaway at the many nearby baches. The Hanmer Springs Alpine Festival is expected to be a month of merriment consisting of activities such as ice skating, a masquerade ball, and a little Christmas in July with a Christmas lights competition. A list of events can be found at: www.visithurunui.co.nz. Also, stargazing is a great way to incorporate the outdoors into your Matariki festivities. There are a couple of famous stargazing spots in New Zealand like Tekapo or Mt Cook, but sometimes you only have to go a
If you happen to be in Christchurch during this time of light, consider taking the family to Tīrama Mai, a series of illuminated artworks, projections and light installations located in New Brighton and Central City starting June 25 and ending on July 10 with a firework display. The event Tīrama Mai is produced by the Christchurch City Council and more information can be found at: www.ccc.govt.nz.
Pegasus Bay Auto Pegasus Bay Autos is your friendly, reliable, family run workshop for Warrant of Fitness and automotive repairs, run by Callum Gibson and Ian Garner.
“Quality Without Compromise”
WARRANT OF FITNESS AND AUTOMOTIVE REPAIRS
Over the years, our mechanics have built a solid reputation for trustworthy, reliable automotive repairs and service to customers. Indeed, we consistently strive to make your automotive repairs as stress free as possible, and with their comfortable couches and wonderful coffee in the waiting room, you can relax knowing one of your biggest assets is in good hands. You don’t need to be stuck without transport while your vehicle is in our care. With one take home loaner car, and one day time loaner car, we’ve got you covered. From Warrant of Fitness, to lube and servicing, right through to
46
www.elevatemagazine.co.nz
cambelts, clutches and engine overhauls, our experienced mechanics will have all your needs sorted. Pegasus Bay Auto is committed to helping our customers make informed decisions about vehicle service options and car repairs. When you collect your car we want you to drive away with peace-of-mind knowing everything’s been done right. We do this by having a brilliant team that has up-to-date skills and equipment, backed by our friendly can-do attitude. We understand most of our customers are passionate about their vehicles. Since we are too, so we encourage you to get it serviced regularly to keep you and your passengers safe, and your vehicle in good condition.
Three top kitchen trends for 2022 There can be a lot of information to digest when the planning and design process begins for your kitchen. Misco Joinery have collated the top 3 trends for 2022 that will add the perfect touch and keep your kitchen timeless. Our client’s kitchen above has incorporated them beautifully.
1. Minimalist designs
A simple colour palette that includes a textured material such as wood or stone can level up the entertainment space. Minimising clutter in the kitchen is the other main minimalist feature, tucking away all smaller appliances into
a pantry is a great way to create a clear and calming space. Our clients used the colour Classic Oak Puregrain as a feature colour for the upper cabinets which ties in with the flooring and creates depth in the area.
2. Curved edges
From mirrors to lounge suites and more recently benchtops, curved edges are appearing in all spaces. We love the subtle softness that they give to a room whether it is a statement
piece or a small detail, they have a way of romanticising the space. Our clients went with a statement curved benchtop end combined with a waterfall end to create a continuous line.
3. Gold accents
You’ve seen copper and brass have their moments, but now it’s gold’s time. Having gold accents is an easy way to add luxury into your kitchen. You can add gold through the handles, feature shelving and tapware. Adding a gold tap in the kitchen, does not take away from the rest
of the details, in fact it adds warmth to the space and the gold handles accentuate this.
Testimonial:
Misco provided a seamless process in designing and producing our dream kitchen. My vision became a reality and they guided me with ideas to ensure I had a timeless yet current on-trend kitchen.
TURN YOUR DREAM INTO A REALITY From kitchen design to installation, Misco Joinery offer the complete package including a free quote to help you create your dream kitchen. Bespoke Kitchens Since 1988
62 Williams Street, Kaiapoi 7630 | P: 03 383 4384 | W: www.misco.co.nz www.elevatemagazine.co.nz
47
Scaffolding, Access and Rigging New Zealand (SARNZ) offers industry support Who we are - Ranging from
multiple stories high, to working with complex structures, scaffolding needs to be robust, safe, and designed with the building and health and safety in mind. It requires skill and a safety conscious approach to working on scaffolding and in rigging. It became apparent that there needed to be oversight of the quality and regulations that companies operated under. That’s when Scaffolding, Access and Rigging New Zealand Inc (SARNZ) was formed, in 1994. A like-minded group formed SARNZ to ensure there was a unified voice for concerns and improving regulation. We are a nucleus for companies of all sizes in scaffolding and rigging
to join. SARNZ are one centralised place for voicing concerns or feedback on regulations, getting help with training and applying Unit Standards for apprentices or overseas applicants, and having the backing of an organization that exists to raise industry standards in quality and safety. We work with government agencies like WorkSafe and CHASNZ to ensure that rules and regulations are fit for purpose and meet the needs of the industry.
What we do - SARNZ supports
members in training staff on best practice, health and safety, and even business development. This support provides our members with the knowledge and expertise to be the best in the industry,
and to raise the standards of construction. If companies are interested in being further quality assured, they can apply for Gold Accreditation. Safety and standards are important to us and we hold our members to a high standard, so we are always continually working on options and projects to protect the industry. Our board members Vadim Spice and David Sopp have teamed up with CHASNZ, and other industry experts, to work on improving Musculoskeletal Disorders (MSDs) recognition and prevention in the industry. With the rapid growth of technology in the industry, processes and awareness have not kept pace to ensure that staff aren’t being injured during its use. This project aims to increase awareness of MSDs and its prevalence. SARNZ is excited to help the industry build more robust communication and
reporting methods for staff around injuries or discomfort, and design processes that acknowledge and account for risky work. A survey has been made publicly available so that the MSDs taskforce can collect data from all over New Zealand from people currently suffering from MSDs or who want to be involved in the project.
Benefits - Being a SARNZ
member means access to all the benefits of being the best in the industry. We work hard for our members and to raise standards in the industry. Our members work hard for you and provide the best quality backed by an organisation that delivers on quality and support. If you are interested in joining SARNZ, head to www.sarnz.co.nz to learn how you can become a member.
NoLimit is North Canterbury’s leading combination of wood fire consultancy, custom installation expertise, and support for the life of your wood fire. Kelvin Aldwin’s (Managing Director) experience includes being a board member of the NZHHA for 2 years. This, combined with his 20 years of experience in the building and construction trade, gives Kelvin a great understanding and knowledge, which means there are no limits to what you can achieve in your solid fuel heating project. NoLimit makes the product consultation and install process more simple than ever. Your initial inquiry with Kelvin will ensure that the wood fire products accurately meet your heating needs and design demands all while staying within budget. Kelvin has an intimate understanding of all Canterbury regional council regulations too so you can be confident that all installation and maintenance work is compliant, working at optimum, and most
48
www.elevatemagazine.co.nz
importantly that your family are warm and safe. Alongside your wood burner selection, NoLimit build customised hearth options to complement your decor and really make the fireplace a stunning feature in your home. NoLimit demonstrate a high-quality lifelong commitment to the success of your wood fire, from the installation to seasonal chimney sweeps and routine maintenance. At NoLimit there is no offloading of responsibility or subcontracting installations to inexperienced juniors; Kelvin is your personal advocate throughout the process and handles everything. Join the ranks of delighted Cantabrians and contact Kelvin today
kelvin@nolimitnz.co.nz www.nolimitnz.co.nz 021 288 9934
Action Scaffolding Looking for scaffolding in Canterbury? Look no further than Action Scaffolding.
We are Canterbury’s scaffolding experts, offering a one-stop-shop for all your building needs. Specifically, we supply, erect & dismantle scaffolding throughout the region. Mark and Kay Backhouse started Action Scaffolding in 2004. Before the Action Scaffolding days, Mark was a builder for over 35 years. With Mark’s wealth of experience and knowledge of the building industry he is well equipped to advise you on your scaffolding needs.
A testimonial from a happy client:
We supply scaffolding for:
When you hire Action Scaffolding you know you are dealing with a team that have the experience and skills to ensure a safe, reliable and quality service. With this in mind, each Action Scaffolding team has at least one New Zealand ticketed scaffolder and one first aider. In addition to this, all of our team members are current site safe members. At Action Scaffolding we are experienced industry specialists with a wide range of professional services to offer.
• Residential & commercial new & existing builds • Building maintenance • Exterior painting • Construction • External inspections • Development • Installations • Repairs & maintenance • Rebuilding • We can supply your nets, wrap & fencing. Contact us today for a free quote and to discuss how we can meet your needs.
The team at Fortified Homes appreciates the work Action Scaffolding does for us. We always find Action to be on time, well priced, have a great friendly team and always go the extra mile when we need it most. We very much value the ongoing relationship and trust that has been built over the last few years. Thanks for all your hard work, and keep it up! – Mike and the team at Fortified Homes
WE SUPPLY, ERECT & DISMANTLE SCAFFOLDING THROUGHOUT CANTERBURY. CANTERBURY OWNED & OPERATED
WE SUPPLY SCAFFOLDING FOR: • Residential & Commercial - New & Existing • Builds • Building Maintenance • Exterior Painting • Construction • External Inspections • Installations • Repairs & Maintenance • Rebuilding • We can supply your nets, wrap & fencing
Contact us today to discuss how we can meet your needs.
PHONE 0800 24 24 72 FOR A QUOTE TODAY! www.actionscaffolding.co.nz www.elevatemagazine.co.nz
49
Premier Insulation Premier’s team of dedicated agents have been providing exceptional service & creating warmer, healthier, more efficient environments for New Zealanders for 26 years. With 18 branches covering New Zealand, Premier is New Zealand’s trusted Insulation network. In each region our hardworking agents not only supply and install Insulation, they support and provide value to their local communities. Whether the project is a renovation or a new build, big or small, you can rely on Premier to be reliable, fast, efficient, and affordable. Premier has a comprehensive range of thermal and acoustic insulation products for use in the ceiling, wall and underfloor of residential homes and commercial buildings.
Premier is proud to be an authorised service provider for the Warmer Kiwi Homes programme from the Energy Efficiency and Conservation Authority (EECA). The government programme covers 80% of the cost of insulating the ceiling and underfloor of your home. The 80% Warmer Kiwi Homes Grants are given to you if either; your home was built prior to 2008, you’re on a low income and have a Community Services Card or SuperGold Card with CSC endorsement, or live in a New Zealand Deprivation
Index eight, nine or ten areas, or are referred through the Ministry of Health’s Healthy Initiative. More than 500,000 New Zealand homes are estimated to have inadequate or no insulation. As a consequence, they are often cold, damp and expensive to heat and leads to an unhealthy environment for the occupants. Homeowners attempt to fix these problems with heat pumps dehumidifiers and other devices. The best solution is one that first addresses the fundamental problem of the heat escaping. A well - insulated home is warmer, healthier, and more pleasant for families. Our core insulation offering is based around two of the world’s most proven insulation solutions; Premier Glasswool and Premier Polyester. Both options provide a range of thermal and acoustic applications to suit your requirements. When you choose Premier Polyester, you’re playing your part in reducing landfills. Made in New Zealand, Premier Polyester Insulation
50
www.elevatemagazine.co.nz
is 100% recyclable… so you can feel good about doing your bit to protect the environment. Environmental choice recognises Premier’s near-zero waste production practices, our use of recycled polyester fibres which come from recycled plastic bottles and the fact that Premier’s polyester products are fully recyclable. Our Premier agents have extensive knowledge, experience, and offer exceptional reliability. When you use Premier, you receive the best quality & service in the industry. All our products & services are backed by a 50-year warranty. For more information on the services, specifications, health, and safety, and contact details head to the website via the link: www. premierinsulation.co.nz Contact your nearest Premier agent today and get a quote either by completing a form online, phoning: 0800 467 855,or emailing: info@ premierinsulation.co.nz Alternatively, head to the South Island store on 14 John Morten Place, Rolleston in the Selwyn District.
RETROFIT
COMMERCIAL
558 764 0080 YOUR DEPENDABLE PARTNER FOR WARM, DRY, EFFICIENT HOMES
WWW.PREMIERINSULATION.CO.NZ
NEW BUILD
We believe a beautiful kitchen creates a place for family and friends to gather with love.
w w w. d r e a m d o o r s . c o . n z
03 338 1081 | 027 338 1081 10A/1 STARK DRIVE, WIGRAM, CHRISTCHURCH