Some of the most common risks and ways of dealing with them SCAN
22
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Welcome...
This issue of Elevate kicks off by looking at risk management, where we list some of the most common risks and popular ways of dealing with them.
Next up is an article about accurately estimating how long a job will take; a vital tool in order run at a profit.
how the industry Leadership Group aims to unlock better outcomes for all involved, the truth about supply and payment chains, ways to rethink your payment process and how technology can both enable and restrict employees... plus lots more.
Enjoy.
We also look at sharpening up communications skills, new technologies driving innovation in the sector, Editor
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Like anything in life, a construction project involves risk, and if you don’t manage that risk then there is a far greater chance that it will turn to custard.
In fact, by their very nature, construction projects tend to be at the upper end of the risk spectrum, not far behind warfare, free solo climbing and betting all your worldly assets on the underdog in a horse race.
Humans have a natural tendency to manage risk, some far more effectively than others. So, you could leave risk management to the people involved in the project in the expectation that they will all behave rationally.
Unfortunately life isn’t like that. In fact, the most common human risk management strategy by far, is to do nothing and hope that nothing will go wrong.
And so we have a number of established mechanisms for managing risk in construction projects. The most effective of those is central government regulation and local government oversight.
The Building Act, the Building Code, and various related pieces of legislation set minimum standards for construction and penalties for non-compliance.
Building Consent Authorities are our specialist police force who supervise and enforce the observance of these minimum standards. And on top of that, the common law holds parties accountable if they are negligent.
Many of those parties are insured, so their insurers try to get them to minimise their exposure as well.
Faced with those potential penalties, asset owners and builders take logical steps to stay out of trouble. And so they hire qualified and experienced staff, and engage expert architects, engineers, quantity surveyors and the like, to avoid making serious mistakes.
But that in itself isn’t enough, because if serious mistakes do happen, no-one is going to voluntarily own up to them. That is why you need another level of risk management, and that is the building contract, which is written primarily by construction lawyers.
The purpose of that contract is to make it very clear who is responsible for what. If you don’t put the effort into doing that at the outset, then when disputes arise, it is significantly more expensive and timeconsuming to sort out the rules retrospectively.
One of the functions of the building contract is to manage risk, and there are a number of
ways to dealing with it. Here are some of the most common risks, and the most common ways of dealing with them.
The first safeguard is to have the building or facility designed in comprehensive detail by competent professionals.
Then have the project inspected periodically by those professionals, the engineer to the project, and the building consent authority. Knowing that defects are still going to emerge, contract for a lengthy defects notification period and a head contractor obligation to rectify notified defects promptly.
In case the contractor fails to do so, insist on a third-party bond at the beginning of the project that can be called upon if that happens.
As an added precaution, deduct retentions from progress payments and only release them on satisfactory rectification of the notified defects Finally, obtain comprehensive warranties and guarantees that can be enforced up to 10 years after completion.
First, require the head contractor to submit and regularly update a chronological programme of when milestones
are to be achieved. Then specify dates for commencement and completion and strictly define the circumstances in which the contractor is entitled to extensions of time. Provide for liquidated damages to be paid for any unjustified delays. Contract for rights to require acceleration of the pace of work at a defined cost to the asset owner, and reserve rights to terminate the contract and bring in alternative contractors if progress is unsatisfactory.
3. The head contractor charges more than it is entitled to
Have all payment claims scrutinised by the engineer to the contract, and reject any unjustified components. Respond to Construction Contracts Act payment claims with valid Construction Contracts Act payment schedules within the required timeframe. And resolve any disputes concerning payment promptly and cost-effectively.
4. The head contractor becomes insolvent or otherwise incapable of performing its obligations
Obtain a third-party bond that can be called upon if the contractor defaults. Reserve rights to terminate the contract and bring in alternative contractors if progress is unsatisfactory.
Some of the most common risks and the most common ways of dealing with them
And obtain continuity guarantees from subcontractors and building material suppliers so that they can be required to work for the asset owner directly.
Obviously this is a risk that affects both parties, but it is the head contractor who will want safeguards inserted into the contract.
Those safeguards would be superfluous (and consequently unavailable) when the asset owner is a government agency or a well-established, financially sound private sector organisation.
However, it’s a different story when you are dealing with a shaky developer. In that case the contractor can insist on a thirdparty bond that can be called upon if the principal defaults.
These are risks that typically aren’t attributable to the acts or omissions of either party, but rather to forces of nature or the intervention of some third party.
Recent examples are the Auckland floods (where nature intervened), and Covid-19 (where the government intervened). These types of events sometimes sabotage the project completely (for example the building site slides down a cliff, or building on it becomes unlawful) – in which case it is known as frustration. But most commonly they just slow it up, and add cost. It may be that the head contractor is simply delayed unexpectedly, or it may be that the structure is damaged and has to be reinstated.
The building contract can deal with this in a number of ways. For a start, events beyond the reasonable control of the contractor usually justify an extension of time, so at least liquidated damages don’t kick in. And sometimes the contract contains a force majeure clause which has much the same effect.
Often the contract provides that the flow-on effects of events like this are to be treated as a variation, which means the contractor qualifies not only for time relief, but also compensation for all the extra costs that arise as a result. The COVID-19 pandemic was a good example of that.
Of course, events like this always cost someone – be it the asset owner or the contractor – and that is where insurance comes in.
Contract works insurance covers damage that isn’t attributable to the acts or omissions of either party. Damage that is attributable to the acts or omissions of the contractor (whether the “victim” is the asset or owner, or some third party such as a neighbour), is covered by professional indemnity or public liability insurance.
It is also common for the contractor to be required to insure critical items of plant and equipment.relied upon as legal advice.
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A nascent drop off in the number of new housing consents could soon help to ease the pressure on New Zealand’s residential construction sector, which has dealt with rapidly rising costs for more than 12 months.
CoreLogic NZ’s Cordell Construction Cost Index (CCCI), which tracks the indexed growth of the country’s national residential building prices, recorded an increase of 1.7 percent in the final quarter of 2022, a significant deceleration from the record 3.4 percent increase in the three months to September.
However, the annual CCCI growth figure, which measures the cost to build a ‘standard’ 200 sqm three-bedroom, twobathroom single-storey brick and tile house in Aotearoa, hit a new high of 10.4 percent, surpassing the previous record of 9.6 percent set in Q3.
CoreLogic chief property economist, Kelvin Davidson, says a surge in new builds, materials supply issues and labour shortages, alongside completion delays, had all contributed to the unprecedented increase to the cost of residential construction throughout 2022.
He says there had been suggestions demand would eventually ease, but evidence of a slowdown had only started
to materialise in the final quarter of the year.
“For most of 2022, new dwelling consents remained high, with smaller dwellings – especially townhouses –becoming an even higher share of the total (nationally 56 percent in the year to October, and 77 percent in Auckland),” Kelvin says.
“But the very latest data is finally hinting at the longawaited slowdown, with last October’s dwelling consent figure itself down by 12 percent from the same month a year ago.”
Kelvin warned even as new dwelling approvals slowed, the ‘huge’ pipeline of consents that had already been granted would take time to be completed, providing builders
and the industry with at least another six to 12 months of consistent work.
“Although the supply chain issues for building materials, such as plasterboard, have eased considerably, overall capacity pressures are still a concern,” he says.
“We can see the lingering strains clearly in the December quarter construction cost figures (1.7 percent rise), which were the lowest for the year, however the index is still running above the ‘normal’ increase of about one percent per quarter,” he says.
“The latest CCCI results are also higher than the rise of 0.9 percent in Q4 2021, meaning the annual rate of cost inflation has accelerated to 10.4 percent, the first double digit
annual figure since the index was launched 10 years ago.
Annual inflation for construction costs was expected to hold at around 10 percent for the first quarter of 2023 he says, before easing over the rest of the year as the red-hot residential building sector finally starts to slow.
“However, in a market where existing house values are dropping, it may well be difficult for builders to keep pushing up new-build prices to compensate for higher costs.
“If so, the net result of continued increases in construction costs, even if at a slower pace, would be further pressure on construction firms’ profit margins,” he says.
“Longer term, annual new dwelling consents are expected to ease from around 50,000 per year to the 3035,000 range, which sounds like a significant slowdown, but remains higher than in previous years.
“This elevated level of construction is partly due to the need to replenish stock levels to meet New Zealand’s future population growth, but also reflects the myriad of demand incentives available for new-builds, such as exemptions from the loan-tovalue ratio rules and investors’ ability to claim mortgage interest deductibility.”
CoreLogic researches, tracks and reports on materials and labour costs which flows through its Cordell construction solutions to help businesses make more
informed decisions, estimate rebuild and insurance quotes easily and, ultimately, appropriate risk effectively.
The CCCI report measures the rate of change of construction costs within the residential market for a typical, ‘standard’ three-bedroom, two-bathroom brick and tile single storey dwelling.
For more information or to read the report, visit: www.corelogic.co.nz/reports/ cordell-construction-costindex.
CoreLogic NZ is a leading, independent provider of property data and analytics. It helps people build better lives by providing rich, up-to-theminute property insights that inform the very best property
decisions. Formed in 2014 following the merger of two companies that had strong foundations in New Zealand’s property industry – Terralink Ltd and PropertyIQ NZ Ltd - we have the most comprehensive property database with coverage of 99% of the NZ property market and more than 500 million decision points in our database.
The Cordell Construction Cost Index is based on building models, representing a typical standard (threebedroom, two-bathroom) domestic dwelling.
The models are for a standalone application, using materials, trade practices and applications that would be considered standard building practice.
Bespoke or specialised style construction or materials are not presented in this index and may vary from the price indicators. Standard build times are allowed but does not take into account delays or associated costs due to longer times.
The changes in prices are measured daily through the use of detailed cost surveys, and are reported on a quarterly basis, with a view to ensuring the most current and comprehensive industry information available.
The models have an approx. representation of 40 percent labour, five percent preliminary, five percent plant and 50 percent material.
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How often have you quoted a job but ended up losing on it, because the hours blew out? It happens to everyone once in a while… but get this wrong too often and you won’t be very profitable.
Even the big players in our industry get this wrong more than they’d like to admit… Fletchers got in trouble with overruns on a number of their major projects. It cost them millions.
Did you know: The Sydney Opera House was completed a massive 10 years behind schedule!
Clearly when you want to make money on your jobs, it’s very important to accurately estimate how much time they will take. If you’ve ever wondered why your quotes don’t work out, this is a good starting point.
Research shows only 17 percent of the population can accurately estimate how much time a job or task will take. Basically, we’re all optimists. We tend to believe the future will be better than the past.
If only 17 percent can estimate time correctly, that means 83 percent are getting it wrong.
Mistakes include:
• ailing to consider how long it’s taken us to complete similar tasks in the past (science calls this = planning fallacy)
• Assuming that we won’t run into any complications that will cause delays (science calls
this = optimism bias). There are a lot of moving parts in a business and if you often underestimate hours on jobs, or don’t allow for unexpected curve balls, you won’t make the margin you need to.
Achieving target margins consistently on every job is key when it comes to being profitable. Let’s not forget: When costs exceed what you quoted, that cold hard cash comes directly out of your pocket.
In very real terms, that means less income for you + stressful cashflow. And that is all kinds of bad, especially for a family business. Plus, cashflow headaches are the #1 reason for going broke.
So how can the average tradie business owner override their planning fallacy and optimism bias?
The secret is to be dealing with concrete numbers. They
make things very black and white, allowing for smarter decision-making. That’s the kind of strategic thinking required for both quick wins and long term success.
I’ve worked with hundreds of tradie businesses and I can tell you: It’s amazing the insights you can get from a simple deep dive into the numbers - when you know what to look for (most don’t).
Yes, one important part of this is back-costing (checking all costs – including time/labour - on previous jobs to see how your quote stacked up against what actually happened).
To do this, you first need to be working with the right project management software, time tracking app or system, for your specific business.
Then, the main thing is, use a structure - so back-costing is easy and doesn’t take all day! Especially important if you run
multiple jobs and have a large team.
Revisit regularly and make sure you are charging enough. The trick is to then actually deploy this historical data and turn it into increased accuracy on your next job.
When I assist clients in the business coaching process to really look at their previous jobs, they can see exactly where they’re losing money on under-quoting. From then on, everything becomes much easier.
Be sure to use a pricing formula so you have certainty that your price is fair. Not too low that you won’t make money. Not too high that you’ll be priced out (or if you are, you can walk away confident, knowing the margin was not enough – you don’t work for free).
Using a formula also means you price consistently regardless of whether you’re feeling
I’ve worked with hundreds of tradie businesses and I can tell you: It’s amazing the insights you can get from a simple deep dive into the numbers - when you know what to look for (most don’t).
optimistic, tired, are desperate for work for your team, or have too much on already.
Include your “fudge ratio” calculation and buffer percentage to build in extra hours for delivery delays, staff absences, weather, etc.
Finally, you need a strong gross profit margin. A “good” margin to add on top varies for each company, depending on your overheads and industry. So it’s important to know what is a good margin percentage to be aiming
at for you, in your market. Although, if it’s not at least 20 percent, I’d encourage you to make some adjustments right away. Anything under this and you won’t be able to cover overheads and still make the profits you need to maintain a successful business.
By the way, studies also show that while we’re generally bad at estimating how long it takes us to do the job, we’re quite good at estimating how much time the job will take when others are doing the work.
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So harnessing the talents and objectivity of someone outside your immediate team (like a QS) could be a smart move.
Ultimately, accurate predictions and back-costing effectively ensures you will achieve the target margins you need, become more profitable, and grow safely, even with the variables, and any bias you may have.
Tweaks like this in profitability + productivity typically get my clients return-on-investment
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The code of ethics, which came into force on 25 October last year, sets behavioural standards for Licensed Building Practitioners (LBPs), to give both the industry and the public clarity on what is expected from LBPs, and to hold them to account.
Why have a code of ethics?
The code of ethics ensures high standards are maintained in the industry, while giving the public more confidence that LBPs are undertaking building work in a safe, legal, and professional way.
It also provides people, such as homeowners, with an avenue to complain should an LBP breach the standards.
Most LBPs already work to the highest professional and ethical standards.
The code of ethics will hold those who do not meet these standards to account, by providing clear grounds for the Building Practitioners Board to take disciplinary action against LBPs who behave unprofessionally.
What does the code of ethics include?
The code of ethics is made up of nineteen standards, which sit under the following four key principles:
1. Work safely
• Take responsibility for health and safety
• Report unsafe behaviour by others on a building site
• Avoid harming the environment.
2. Act within the law
• Comply with the law
• Report breaches of the law.
3. Take responsibility for your actions
• Know what building work you are allowed to do
• Explain risks to your client
• Inform and educate your client
• Be accountable for building work carried out by you, or someone under your supervision
• Advise clients of any delays as soon as they become apparent
• Act in your client’s interests
• Generally, you should follow your client’s instructions unless the instructions are
By Conor Topp-Annan Senior advisor, Ministry of Business, Innovation & EmploymentThe code of ethics will hold those who do not meet these standards to account, by providing clear grounds for the Building Practitioners Board to take disciplinary action against LBPs who behave unprofessionally.
dangerous, are contrary to contracts or consents, or would mean you would not be acting within the law.
4. Behave professionally
• Behave professionally
• Act in good faith during dispute resolution
• Price work fairly and reasonably
• Declare and manage actual or potential conflicts of interest appropriately
• Maintain confidentiality of client details, unless there is good reason for sharing information
• Acknowledge and respect the cultural norms and values of your clients and colleagues
• Conduct your business in a methodical and responsible manner.
Where can I find more information?
The Ministry of Business, Innovation and Employment has developed information and education resources to help LBPs and the public learn more about the code of ethics.
These are available on the LBP website and include a detailed guidance document and an interactive on-line learning module.
The module takes 20-30 minutes to complete and can count towards an LBP’s skills maintenance activities (note LBPs must log-in to the module for it to count towards skills maintenance).
It’s said the only constant in life is change and this applies to all aspects of our lives -especially the working environment.
With change comes new opportunities, particularly as different industries recover and reset after the disruption of the last few years, or tackle new environmental and economic challenges.
As we now know, change can come at us really fast and when it does, we have to rapidly change focus and the way we do things.
People’s roles may need to change; you may have to lay off staff or hire new employees, or diversify your products and services to keep your business afloat.
Whatever your circumstances, whether you are looking at scaling up, downsizing, streamlining operations or diversifying, clear communication ensures people know where they stand and what is expected of them.
And while it’s impossible to predict exactly what upcoming changes and challenges will look like, you can anticipate the different types of information you might need to address.
For example:
• Changes to policies and procedures
• Staff changes and role expectations
• Environmental changes, supply chain issues.
While countless books have been written on this topic, here are a few common pitfalls that see communications fail:
• Information overload
• Poor timing, wrong channel
• Lack of process documentation and training
• Unclear or mixed messages creating confusion.
So how do you know if the quality of the communication in your organisation is fit for purpose?
A good place to start is by reviewing the systems, processes and channels you currently use to identify what works well, and what could be improved. And as you do so, consider some worst case scenarios you might encounter to help you avoid potential pitfalls, for example:
• Systems access gets lost when a staff member keeps business passwords in a personal notebook and forgets to pass them on when they leave
• People save files locally to their desktop instead of in the centralised file management system, which means that others waste valuable time tracking information down
• Unclear sales and customer service processes result in multiple people contacting the same client, giving them mixed messages; or conversely, nobody contacts them at all. This can impact the quality of the customer
experience, damage your reputation and cost you money
• Lack of documented induction and training processes sees new staff come on board and make things up on the fly in a way that misaligns with your goals, values or organisational culture
• People leave your business expressing frustration which reflects poorly on your reputation as an employer.
Taking the time to identify gaps can also provide opportunities to improve your organisational productivity and culture. For example:
• Improving the user experience for your systems and processes so people know how to get the best out of them. This can free up their energy to improve customer satisfaction
• Ensuring there are processes in place that enable people to deal with situations as they arise
ignored. And if you are sharing information that will have a personal impact on people, it’s vitally important that you use a suitable channel and approach that reflects empathy and care.
Seeking feedback will give you a sense of how communication flows and you might be surprised how a small change can make a big difference.
However you choose to communicate in times of change, make sure that you provide clarity and assurance to people. Important aspects
improvement based on your strategy and goals for the next 12 months.
Talk to people, review the systems across a range of areas to make sure you have a clear communication plan. That way, should change come at you fast, you’ll be ready to get the message across to your team.
Increasing the effectiveness of your communication will make your business more resilient to future changes so you can adapt quickly. So, what can you do to turn these gaps into opportunities?
Some people will be happy to be given a taste of what’s on the horizon and told where they can find information as/when they need it. Others will prefer to receive, digest and reflect on as much information as they can access, particularly in times of change.
• Identifying ways to improve relationships with suppliers or vendors
• People leaving your organisation can attest \ to having had a positive experience, potentially becoming an advocate, helping you attract new talent.
Consider different communication styles. It’s essential to consider the different communication needs of team members.
Some people will be happy to be given a taste of what’s on the horizon and told where they can find information as/when they need it. Others will prefer to receive, digest and reflect on as much information as they can access, particularly in times of change.
Similarly, you need to consider and select the most effective method and channel so that messages are not inadvertently overlooked or intentionally
to include:
• A big picture overview to give context
• Details and steps to give guidance
• Emotional assurance to give certainty
• Expectations of timelines so people get the information they need.
Provide information in a timely manner via suitable channels so they can understand issues in a way that makes sense to them.
No two organisations are alike when it comes to communication needs, especially in times of change. However, poor communication can cause numerous problems in every organisation, so it’s crucial that your internal communication channels are robust and fit for purpose. As the end of the year approaches, look ahead and prioritise the areas for
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During the last few years, the engineering and construction industry has experienced a new wave of innovation and digitisation.
Organisations within the sector are waking up to the possibility of utilising new technologies to solve traditional problems, reduce errors and risk, save time, connect with the right suppliers, and work effectively remotely.
This means there has never been more pressure on the industry to continue implementing digitisation efforts.
These challenges have the industry rethinking every aspect of project delivery and the role technology can play to improve outcomes while driving down risk and costs.
Data will reach a new level of meaning
C&E executives and operators are realising that they must standardise, digitalise, and automate their processes to differentiate themselves in the market.
Organisations will begin to take an approach where they will analyse everything meaningful that can be measured.
After determining the data or metrics they need to capture and monitor, organisations will be able to standardise, digitalise, and automate their processes to capture and analyse this data in real-time.
The results may be surprising on what really holds the keys to success. For example, one overlooked setback could be the lynchpin factor that routinely can throw off an entire construction project.
With standardised business processes, constantly pulling and analysing data, firms will be able to drive productivity and efficiencies to better compete, differentiate themselves, and stay ahead.
This quick data intelligence can also help identity and resolve data security issues faster. This alone will become a growing competitive advantage in the coming years as customers will want reassurance that their data will be kept safe.
Data holds a wealth of potential value for the construction industry and will play a starring role in the digital transformation of the sector.
With hundreds of decisions all happening at once on a project, organisations will look to improve how data is managed – and how it is used to inform decision-making.
Powered by an AI and ML (machine learning) “data backbone,” organisations are moving towards a new breed of
intelligent technology platforms to digitise workflows.
These platforms will help organisations liberate their data and convert it into the intelligence needed to accelerate performance. They will also provide highly secure information management, reporting, and workflow automation to drive efficiency, visibility, and control across project processes. These cloud-based intelligent construction platforms will give organisations a competitive edge in an increasingly crowded market.
Predictive AI will help organisation look ahead
To date, business intelligence technologies have generally provided only a backward-looking view into project data, i.e., what has happened on projects.
While these insights are valuable, organisations will look to construction technology platforms that utilise AI that can predict what is ‘likely to happen’ throughout the construction process, improving chances of delivering a project on time and on budget.
New developments in AI have unlocked another level of project intelligence, enabling predictive insights to drive better decision-making to improve project outcomes.
This can yield a dynamic view into such variables as:
• The factors which might delay a project
• The probability of delay on a project
• Amount of predicted delay
With standardised business processes, constantly pulling and analysing data, firms will be able to drive productivity and efficiencies to better compete, differentiate themselves, and stay ahead.
• Likelihood (and severity) of a cost overrun
• Hidden risks around safety, design, rework, and litigation.
AI will help organisations succeed in the present, by learning from the past, to improve the future.
It will yield predictive insights that add value to nearly every aspect of construction project management, including critical areas such as schedule, cost/ budget, quality, safety, risk, and collaboration.
5G will power the truly connected worksite
Greater mobility and the advancements in connectivity brought about by 5G will further accentuate the industry’s ability to utilise insights provided through common data environments (CDE), the sensorisation of jobsites and materials, augmented reality (AR), AI, and ML.
These technologies will provide greater connectivity, capacity, and democratisation of technology.
Eventually, work sites will be able to sensorise virtually anything on a job site, allowing
companies to collect data from tools and materials.
For example, workers could put sensors in concrete to assess drying time. Capturing such information from IoT sensors will make 5G a critical component of a job site.
Additionally, 5G will further heighten the focus on visualisation and enable experts to provide real-time guidance to new technicians connected via headsets, glasses, or other visualisation technologies.
As 5G becomes more accessible, it will open up new
capabilities for oilrigs, pipeline monitoring, laser scanning, BIM modeling, and more.
Leaders from New Zealand’s prominent construction companies have come together to form the Vertical Construction Leadership Group (VCLG).
The group has been established with the aim of providing a coordinated focus on crucial issues impacting productivity and the construction sector’s ability to deliver critical infrastructure, including our schools, hospitals, and workplaces.
Vertical Construction Leadership Group lead and Master Builders CEO, David Kelly, says the group was founded to achieve a united voice for the vertical construction sector. “Our aim is to take action to deliver a better performing, stronger, and more sustainable sector that meets the current and future needs of New Zealand.”
The Group, chaired by leader in commercial construction, Peter Neven, has prioritised six key focus areas across the supply chain, labour market, sector sustainability, procurement,
contracting, and addressing risk allocation.
A recent survey of leaders within the VCLG illustrated the scale of the issues facing the sector. The results revealed that while aligned with the issues facing residential housing, the challenges faced in vertical construction can be far more complex, particularly given the growing complexities of projects, the magnitude of cost escalation and delays, procurement, and sector productivity.
While highlighting the full scale and complexity of the sector, the survey showed larger projects made up the biggest proportion, with 42 percent of commercial builders managing projects costing over $100 million, over at least a 24-month period.
Most of these projects require complex teams, including more than 30 subtrades.
More than three quarter of respondents are managing more than 10 projects at any one time, adding to the complexity facing the sector.
David notes the significance this project scale has on the industry, saying, “The risk involved in delivering a project like this is already significant – but when we add to it the current skills and product shortages – the complexity becomes acute.
“As a group we intend to establish an environment where we work more effectively with government at the outset of projects, so that the procurement process allows higher quality assessments of risk to produce better outcomes for taxpayers.”
A key focus for the VCLG is on the government procurement system.
Progress has already been made here with the Construction Sector Accord, but the current environment is still putting pressure on productivity at the outset.
While some (35 percent) have reported that procurement
practices have been moderately better over the last 12 months, 57 percent claimed it has been moderately worse or there has been no change.
Similar results were reported for the impact of the risk and liability provision changes in contracts. The paperwork involved continues to increase with procurement processes currently on average consuming 26 percent of the VCLG’s workforce in administration time.
“Procurement for this sector is very specialised and requires expertise which is currently hard to find across local and central Government, and across the private sector. An added challenge for many Government agencies is that construction is not their core area of focus, and nor should it be.
“The VCLG is committed to working across the sector and with Government to find ways we can grow the talent pool in this critical area.
As a sector we have recognised that we cannot wait for others to find solutions.
“We know how important this stage is to the overall project – it sets the success parameters and tone of the process ahead,” David says.
Cost escalation is also an increasing concern impacting the sector’s ability to deliver. One hundred percent of those surveyed are experiencing cost increases for both labour and products.
“While this is not a new issue for the sector, the chronic skills shortage continues and with it does the cost of labour.
“While apprentice numbers are up, it is the more experienced workers that are currently lacking and companies are finding it more difficult to bring in skills from overseas. As a result, professional management costs continue to rise.”
The VCLG is looking forward to working collaboratively with The Construction Sector Accord, The Infrastructure Commission, The Property Council, The Institute of Architects, and the Association of Consulting Engineers to take on the very real issues facing the sector.
“As a sector we have recognised that we cannot wait for others to find solutions.
“Stronger leadership has been identified as a necessary condition to meet sector and Government’s construction goals and the group has come together as a result of this.
“We want to make it easier for all parts of the sector to work together – with better access and a united voice.”
The Vertical Construction Leadership Group (VCLG) consists of 72 leaders from New Zealand’s leading construction companies to give greater focus to the issues facing the sector.
A recent survey reveals the complex and varied issues facing the vertical construction sector across procurement, supply chain, labour market, and productivity:
• 100 percent of those surveyed are experiencing cost increases for both labour and products
• 53 percent of commercial builders say it is more difficult to get staff than what it was 12 months ago
• Nearly all commercial builders are seeing on-site delays, with 37% experiencing delays of over 6 weeks
• Nearly half of respondents reported procurement has become more complicated in the last 12 months, with on average 26 percent of a company’s workforce being involved in administration and procurement.
A household name in Canterbury, Musgroves is a pioneer in the trading of quality recycled building materials and joinery.
They’re also well known throughout the South Island. Musgroves began back in 1942 when its founder, Dave Musgrove, began working in general cartage. He was joined by his brother, Alf, in 1946 after World War II. Musgroves Bros. was formed.
From there, the brothers worked in the cartage and road contracting industry right up to 1970 with the catchphrase that they would “move anything, anywhere, anytime.” In 1969, under the management of Graeme Vickers, the company’s work broadened to include demolition and the selling of recycled materials.
Their aim is to provide customers with high quality products, both new and recycled, at some if not the lowest prices regularly available.
Although the company ceased general contracting work in 1980, it continued on with demolition work for some time later and began to specialise in the selling and buying of recycling building materials.
Today, the team at Musgroves continues to provide Cantabrians and New Zealanders alike with quality recycled materials and joinery. Their aim is to
provide customers with high quality products, both new and recycled, at some if not the lowest prices regularly available.
Musgroves stock a large range of quality reclaimed building materials at their Christchurch yard. These materials are sourced through demolition and salvage projects as well as supplier surplus stock and order cancellation.
From timber and roofing to cladding and windows, they can offer a huge range of materials to suit any project.
Musgroves also have an increasing range of unused products including home insulation, gypsum plasterboard, new and recycled corrugated iron, plywood and timber for most applications. They also have an increasing range of products such as aluminium joinery (doors and windows) and ACM panel.
They offer timber ranging from flooring/tongue and groove, landscaping timber, outdoor furniture and decking timber as well as structural framing, furniture grade, skirting boards and architraves.
Musgroves also offer a massive range of landscaping options from posts, trellis’s, planter boxes and boxing pegs to stone, cobbles, pavers, bricks and netting. Not to mention, they offer complete kitchens, cabinetry, bench tops and sink inserts.
Wood Types
• Macrocarpa
• Oak
• Oregon
• Pine
• Hardwoods
• Rimu
• Beech – Southland Silver
• Kahikatea/White Pine
• Lawson Cypress
Customers have created some amazing projects with materials purchased from Musgroves. A cat enclosure, a recycled rimu side table, a wooden playhouse, a macrocarpa picnic table set and so many more! You can hop online to check out these fantastic projects and get inspired yourself.
Musgroves also has a DIY blog to aid in those home project. From guides to using macrocarpa and creating brick landscaping to building overhead garage store and creating a relocatable garden shed, the team had some fantastic tips and tricks.
For all your recyclable material needs and to get creating your
next DIY project, visit the team at Musgroves.
The Wigram yard is open from Monday to Friday, 8am to 5pm as well as being open on Saturday from 8am to 4pm. Get in touch with the team via phone at 03 322 7922 or flick them an email at sales@musgroves.co.nz.
As the NZ Construction Contracts Act celebrates 20 years, Tony Simonsen draws insights from legal expert Nick Gillies to reveal the truth about trust in supply and payment chains.
As we recently hit the 20-year anniversary of the Construction Contracts Act in New Zealand, we’re reminded of the ongoing issues within the sector around payments and trust, which can be alleviated with simple solutions already widely available.
Working with construction lawyers such as Nick Gillies, Partner at the Hesketh Henry law firm, it becomes very clear that despite the fact we’ve hit a milestone with the Construction Contracts Act, there’s still a surprising lack of understanding about what the Act requires, as well as the tangible benefits and potential detriment of it.
Ultimately, the Act is designed to benefit the entire industry right through the supply chain and support better cash flow. It aims to stop the traditional habit of withholding payment without a valid reason, and encourage better, more transparent practices between parties. It does this in a few key methods: by protecting retention money held under
contracts, creating a fair and balanced payment regime process, providing adjudication for faster resolution of disputes, and providing enforcement mechanisms to recover debts due.
Nick shared with us how the Act works on the ground and the phenomenon known as ‘sudden death’.
He says, “How this works is that with each payment round, which is usually monthly, each party essentially has one opportunity to get it right. So, if you’re the payee, say a subcontractor looking to be paid from your head contractor, you have one opportunity that month to ensure you get a valid payment claim in on time.
“This sets out what you think that you’re entitled to be paid for that month. If you don’t meet the specific requirements set out in the Act for having a valid payment claim, then you can’t get the safeguards of the Act and under your contract you may not be entitled to be paid anything for that month. So, it’s sudden death for the payee in that respect.
“For the payer, when you receive a payment claim you’re required to issue a valid payment schedule in response. If you fail to do that, you’re unable to make any adjustments to the claimed amount and are required legally to pay the full amount that’s being claimed, even if you don’t agree with the amount. You have to pay the sum now and argue the point later.”
Nick notes that in his work he sees non-compliance on a regular basis.
He says, “I appreciate that we often only see the worst of it, but the regularity with which we see non-compliance with the payment regime in this industry is surprising to me.
“And it’s not specific to any particular type of business - we see tier one contractors just as much as smaller SMEs. A lot of this seems to come down to inconsistent practices within organisations, and even month to month by the same individual processing payment claims and schedules.”
The role of Form 1 and the
Recognising the number of inconsistencies and lack of compliance, in 2015 the New Zealand Government made it compulsory to include what’s known as Form 1 with every payment claim, instead of only requiring this for residential construction contracts.
The simple, pro forma explanatory note is a twopage document that includes the processes for responding to the payment claim, and the consequences of not responding to or paying a claimed or scheduled amount.
It’s geared towards ensuring greater transparency and includes the most basic requirements that are commonly missing or deficient in payment claims. Without this form, the
submitter can’t enforce their claimed amount.
As Nick points out, it’s common for parties to have forgotten this form or have not even realised they needed to include it.
Such a recurring and easily fixable issue brings us to the downside of manual processes, and the role of software and technology.
Nick commented, “The preparation of payment claims, and the creation of payment schedules and processes is typically very manual, and each organisation will have its own different documentation and way of doing it.
“For instance, they will have their own spreadsheet that they created, possibly some years ago, which they keep reusing as a base.
“Each organisation, and sometimes each individual, will have their own base document. Because of this, there is often a huge amount of inconsistency between organisations and within organisations, as well as individuals.
“What often trips people up is not having a clear policy and a consistent, methodical, systemised approach,” Nick says.
The lack of understanding about technology available, and resistance to change, means that organisations are continuing to use out-of-date methods such as Excel or Word docs, and haven’t moved far from carbon copies.
To step away from manual methods may seem daunting, but in fact is necessary if an organisation is to thrive during uncertain times.
This leaves them open to errors and means they’re unable to take advantage of the Construction Contracts Act and ensure they’re getting paid correctly.
Using software that requires even basic information such as dates, and flags incomplete information, is already a significant step forward in generating better compliance and trust between stakeholders. Nick concludes that, “The main benefit that I can see from technological improvements
and using digital tools is the structure and systematisation it brings, where you must input the necessary detail. This should save a lot of time, a lot of grief, and improve efficiency.
“When it comes to productivity, New Zealand is notoriously poor.
“And a good example of this is the time and energy that goes into creating manual payment claims and schedules, some of which can change month to month. So that’s where I see the main gains from technology.”
Construction organisations must realise that software investments have the potential to not only enhance operations, but to ease simple processes where an error can be costly and detrimental to projects and stakeholder relationships.
To step away from manual methods may seem daunting, but in fact is necessary if an organisation is to thrive during uncertain times.
Canterbury Roof Painting services all of Christchurch and most of Canterbury, and will provide you a complete professional service – from the initial inspection right through to the final clean up.
Many home owners take their roof for granted, and probably do not give much thought to the condition their roof is in. If the protective coating on your roof is worn, faded, delaminating (peeling) - you need to take immediate action to stop the elements causing serious and potentially costly damage. A roof repaint is typically a quarter (or less) of re-roofing prices.
If you are selling your property, the aesthetics of a newly painted roof can also be very appealing, particularly
if you have a faded Colorsteel roof that is very visible from the ground.
The First Step: When you have recognised that there are some potential issues with your roof and decided you are going to repaint, experienced staff at Canterbury Roof Painting will visit your site and inspect your roof. We will then provide you with an honest report outlining any defects, damage, potential risks and a course of action required to rectify any issues.
The Next Step: Post-inspection, you will receive a detailed written report and free no-obligation quote outlining the on-site inspection and any costs relating to rectifying any issues. Included will be specifications regarding preparation and paint application.
Job Completion:
Once your project is complete, your property will be cleaned and you will be asked if you are completely satisfied with your experience and the job completion. We do strive to complete our roofs to an extremely high standard, both in our workmanship and our onsite etiquette. As we say, your home is your castle and
we will treat it with the utmost respect it deserves.
Canterbury Roof Painting only uses leading paint brands such as Wattyl, Resene, and Dulux. These companies all carry 12–15-year product warranties with paints designed specifically for New Zealand’s fluctuating climate. We also provide a wide variety of spray applications, such as garage doors, spouting and gutter systems, fences, commercial buildings, exterior and interior residential homes, desks and more.
We also offer options for commercial work, schools and farm outbuildings etc..
For all your quality plumbing needs and a stress-free experience, get in touch with Warwick Kirwan Plumbing.
They have over 16 years of experience in the plumbing and heating business, so you can be assured they will give you the very best service possible.
Warwick Kirwan Plumbing started in business in February 2000 and their workshop is based in Rangiora.
Whether you need plumbing services for emergencies, maintenance or repairs, the team will be able to help you. For exceptional plumbing installations, maintenance and repairs, give the team at Warwick Kirwan a call. Their qualified plumbers provide reliable services that meet the highest standards.
“Our qualified plumber provides reliable services that meet the highest standards. We take pride in our honesty, and will not surprise you with unnecessary work or unexpected costs.
“It is our goal to help you avoid any large costs down the line. We will not simply
treat the symptoms of your plumbing problem, we will solve the entire issue.
“It is important to us that your property is left in excellent condition. The team will protect all surfaces to ensure your home is clean and tidy when the job is complete,” says the team.
If you are needing a new heating system installation or repair this winter, Warwick Kirwan Plumbing can help.
There is nothing better than a cracking wood fire in the winter. The team performs regular maintenance on their installations to ensure they can help you avoid future costly repairs and make sure your fireplace is performing excellently year-round.
“Not only do we install wood fires, we also perform maintenance and inspections when needed, in order to ensure safety and longevity.
“We can also assist clients with bathroom alterations. For log fire installations we
can help with the permit application and we can check that the log fire fits into the space desired. We have a total of four working vans on the road.”
Our plumber provides reliable services that meet the highest standards. We take pride in our honesty, and will not surprise you with unnecessary work or unexpected costs.
Their tradesmen are all certified plumbers who have extensive experience in commercial and residential plumbing. You can have peace of mind knowing that you have highly skilled and knowledgeable tradesmen working on your property.
Warwick Kirwan Plumbing team will never be found cutting corners. They deliver only the highest standard of workmanship.
They only use quality products and materials, leaving you with end results which you can trust will stand the test of time.
For all your water pump installation and maintenance needs in the Canterbury region, talk to the team at Warwick Kirwan Plumbing.
They are available for 24 hours, 365 days a year callout. This means you can rest assured that help is readily available should an emergency arise.
The team is customer focused and customer satisfaction is always their first priority.
To find out more about Warwick Kirwan Plumbing make sure to get in touch with the team today on 03 312 8947. Alternatively, give them an email on info@ warwickkirwanplumbing.co.nz.
To read more about the services the business provides make sure to check out their website at warwickkirwanplumbing.com.
VIP Frames & Trusses has emerged as a trailblazer in the construction industry, offering high-quality frames, trusses, and pre-fabrication services across New Zealand. Founded in 2007 by Keith and Daniel Caldwell, VFT has achieved remarkable success driven by a commitment to exceptional quality, innovative solutions, and a customer-centric approach.
Daniel Caldwell, Director of VIP Frames & Trusses, started as a labourer in the family business, Dyers Rd ITM, at the early age of 14. Daniel acquired extensive experience in the frame and truss plant and in 2007, Keith and Daniel saw the opportunity within the Canterbury Frame & Truss market to run a business that would be locally owned and operated. Creating VFT would also provide benefits for customers by producing frames and trusses that were hassle-free with a quick turnaround time. Today, Daniels passion, dedication, and customer focus continue to shape VFTs trajectory.
Since its inception, VFT has undergone a remarkable evolution and expansion. In 2017, VFT further solidified its position by opening a factory in Auckland, employing over 80 staff. A new factory in Palmerston North was set up in 2022 and VFT now comfortably caters to the entire North Island.
With in-house designers and engineers, the company offers a comprehensive one-stopshop experience, streamlining the construction process and reducing potential delays. VFTs latest offerings, include VIP Steel Frames & Trusses which provides an alternate solution to traditional timber prenail products and VIP Prefab which specialises in midfloors, roof cassettes and pod fabrication for large commercial buildings, delivering faster build times on-site and minimising labourrelated challenges.
VIP Frames & Trusses emphasise the benefits of early engagement and collaboration
for builders, developers and homeowners planning their construction projects. By consulting with the team early, clients gain access to tailored solutions and eliminate any potential hurdles. From small houses to large multi-unit developments VFTs expertise and dedication ensure a smooth and efficient process from concept to completion.
In the face of ever-changing market conditions, VFT remains agile and responsive to customer needs. By continually evaluating client feedback and aligning their businesses accordingly, VFT ensures that it stays ahead of the curve. The company’s unwavering commitment to providing the best service, coupled with a deep understanding of the client’s requirements, enables them to overcome challenges and exceed expectations.
Daniel’s leadership at VIP Frames & Trusses has fostered a culture of innovation, competition, and bold thinking. Daniel’s ability to inspire his team has propelled VFT to be
the industry leader, constantly pushing boundaries and setting new benchmarks. As a family-operated business, VFT values integrity, respect, and appreciation, which has resulted in a cohesive and dedicated team.
Success, for VFT, is measured through the trust and relationships cultivated with clients. By delivering exceptional customer experiences and maintaining the highest standards of product quality, VFT has garnered a reputation as a trusted partner in the construction industry.
Looking to the future, VIP Frames & Trusses remains committed to enhancing its offerings and setting new standards in the construction industry. Its latest business VIP Traffic Management is a testament to the company’s agility and competitive spirit, enabling it to adapt quickly to suit customer requirements and remain at the forefront of market trends.
The construction industry has been on a path of digital evolution for the past few years, with technologies such as the Internet of Things (IoT), reality capture, and autonomous vehicles increasingly being implemented across businesses to optimise efficiency and reduce time-investment.
But while there’s effort to integrate new technologies on ground at the construction site, businesses tend to often overlook the potential use of technologies in the back-office. Here are four reasons companies may benefit from
rethinking their construction payment processes to increase productivity and limit risk.
By replacing traditional payment processes with modern solutions, companies can boost efficiency and control – for all stakeholders – across invoicing, payment, and compliance management.
Ultimately this can reduce risk as a general contractor, owner, or subcontractor, while also freeing up teams’ time to focus on activities that are more beneficial to your business. A collaborative payment management solution not only helps manage the payment
and billing processes across project participants, it also can forge better, more lasting partnerships in the industry by providing assurance everyone is paid fairly and on time.
Such technology can streamline the payment process for construction companies of all sizes by managing payment due dates and related actions, as well as improving accuracy.
It also eliminates inefficiencies and a slew of risks, including human error, improper payments, and liens that prevent the clean handover of a project to the owner.
It is essential that the industry adopts innovative processes which ensure that increasing demands can be met.
Investing in payment management solutions is an effective way for construction firms to maintain strong relationships with subcontractors.
This is because they can quickly pay subcontractors who have immediate cash flow needs.
Promptly disbursing payments can help create a partnership of convenience and trust - making it far more likely that subcontractors will accommodate their needs when necessary.
However, firms can’t take a half-measure approach to automated payments. It’s no use if some jobs remain on an older manual system, while others are on the new system.
This can easily cause confusion and stall collaboration and progress. To truly maximise efficiencies, there is no better approach than going all-in with implementation.
Automated payment solutions also enable team members to collaborate within one shared environment.
With all parties using the same collaboration platform, owners, general contractors, and subcontractors all need visibility into compliance and payment status.
As a result, they can anticipate and collaboratively address potential issues before they grow into pressing problems.
In addition to strengthening relationships and ironing out inefficiencies, automated payment solutions can help companies eliminate manual steps and miscalculations. This can be done by automatically generating accurate invoice documents linked to schedules of value, for example. Plus, they can help firms centralise the tracking of compliance and lien waiver management, alongside other important documents and reporting.
This helps streamline these crucial tasks, and it prevents further safeguards against risk to all stakeholders.
Additionally, firms can implement a standardised cloud-based system for financial processes across their ERP and accounting system, which can provide support reports, dashboards, and analytics. This enables firms to capture and analyse payment data across their business, providing a more strategic current state of affairs, and helping answer
questions delivered to them when and how they want them.
In all, these modern approaches to payment solutions can help mitigate financial, legal, or reputational risk, while improving cash flow.
Ultimately, this improved cash flow also allows organisations to more predictably meet payroll, hire, and invest in their business.
As construction sites continue to incorporate cutting-edge technology to help teams complete projects in a safer, more streamlined way than ever possible before, it simply makes sense to further modernise the payments process as well.
It can provide all stakeholders with peace of mind by helping put an end to those pesky
site.
Automated payment solutions also enable team members to collaborate within one shared environment.paper-driven office tasks that are already being eliminated with cutting-edge technology on the job
Groundwork Driveway Specialists 2003 Ltd has been perfecting the art of concrete since 2003.
The company is due to celebrate 20 years in business as a Canterburyowned and operated family business. Groundwork strives to employ top quality staff who are professional and knowledgeable in their trade. Its staff thrives in the positive work environment, a testament to Groundwork’s company ethics that many staff have been part of the Groundwork Team celebrating 5, 10, 15 years in the company.
When you see Groundwork vehicles operating in your area, you see maintained, modern machinery – the team always uses the correct equipment. Groundwork’s staff is well presented, professional, and ready to keep up with all the new techniques and style. This ensures your job not only is completed to the highest standard but is durable and modern, enhancing your home or business. Groundwork knows how to
get the job done efficiently to the highest standard, leaving its sites clean and tidy. The team works with all other subcontractors with the aim of making the job run efficiently for all involved, no matter how big or small.
Many private homeowners are proud their most prized asset their home has been enhanced with a Groundwork driveway, paths and patios.
Groundwork Driveway Specialists managing director, Rick Bolton is the first point of call. Rick has over 30 years of experience in the industry on all levels from roading and commercial construction through to residential new builds. Call
Rick or use Groundwork’s website options to make contact, and Rick can arrange a free quote to go over your plans.
Our work has been showcased all over Canterbury from working on the Southern Motorway, working with various housing companies on residential driveways, multi-unit developments, subdivision developers and service station forecourts throughout the region. Groundwork was honoured to complete the concrete works in the Earthquake memorial near the Avon River.
Many private homeowners are proud their most prized asset their home has been enhanced with a Groundwork driveway, paths and patios, with Rick often offering design advice to enhance the use of outdoor spaces to make them user friendly and bring value to their home.
Work for Canterbury homeowners ranges from heavy duty work, from all kinds of vehicle driveways and parking
areas to footpaths or urban landscaping features in higher-use zones.
Driveways installs will often require kerbing work to separate paved areas from garden and lawn spaces. Beyond that, Groundwork can also add other custom features to create interesting colour or textured concrete, including exposed aggregate concrete driveway work. An exposed aggregate surface creates a unique stony texture, and, at Groundwork, the company has access to a selection of locally sourced stones that will give your driveway a natural New Zealand look. The concrete specialists can further enhance and protect the natural colour with a final sealing.
From laying functional concrete driveways to textured concrete work for decorative pathways or patios, Groundwork is up for any challenge.
For all your concrete-related needs, get in contact with the team at Groundwork today.
Located north of the floodplains of the Rakaia River Canterbury, Ellesmere Excavation and Aggregate are perfectly situated to supply your aggregate requirements sustainably while looking after your excavation project.
A family owned and operated business since 1996, the team at Ellesmere Excavation and Aggregate have the equipment and the expertise to deal with any project and with a focus on making your project a success.
Excavation
• Site Works
• Trenching
• Driveways And Carparks
• Farm Tracks
• Rural Maintenance
• Water Race & Drain Cleaning
• Horse Arenas
We supply a wide range of aggregate direct from our quarry, ex river pick up or we deliver
• Crushed 40/65
• CAP 20,40 & 65
• Drainage Chip – variable sizes
• Boulders
Ph: 027-752-8316 • E: office@aplusplasterers.co.nz
www.aplusplasterers.co.nz
With over 20 years of experience, A Plus Plasterers is one of the most well-known and recommended construction companies in Christchurch. Our range of plastering services includes:
3 General interior plastering;
3 Exterior plaster projects;
3 Specialised plaster jobs;
3 Construction project plastering;
3 Repairs and maintenance, including EQC repair work.
Conventional steel and concrete underpinning have long been the go-to solutions for engineering and construction professionals who need support or strengthen the foundation of an existing structure.
But alternative solutions are gaining favour over traditional underpinning.
With a more innovative approach, modern methods of stabilising and lifting structures are streamlining restorative projects, lowering budget estimates and decreasing site sizes by removing the need for heavy machinery.
This raises the question: Is conventional underpinning still the best solution or is it time to move on and adopt more innovative alternatives, particularly when it comes to larger buildings and assets?
The challenges of underpinning Underpinning involves installing an additional support system to a structure’s foundation.
It traditionally involves digging holes beneath the existing foundation and adding steel or concrete underpins, thereby creating a new foundation that extends into firmer soil.
Once these new foundations are installed the structure can be lifted using mechanical jacking and packing.
Traditional underpinning still exists today because it typically delivers effective results.
With a more innovative approach, modern methods of stabilising and lifting structures are streamlining restorative projects, lowering budget estimates and decreasing site sizes by removing the need for heavy machinery.
However, logistics can be a major drawback. Often due to inflated costs and the size of installation equipment, new foundations are typically only installed three metres apart.
This leads to fewer footings being installed which can cause a point load to the bottom of the foundations during the mechanical jacking process.
Point loads can cause damage to the building, especially if its foundations are inadequate or if the building is a rigid structure built from stone or brick.
The underpinning process normally involves jacking one underpin position at a time, which can also place undue stress on other parts of the building and cause serious aesthetic and structural issues.
The method itself is also slow to install, very invasive and cause more damage to already fragile buildings.
It can be an incredibly invasive process as it requires access for excavation works to be carried out.
Excavation works often damage footpaths or surrounding environments, and force residents to deal with the inevitable mess and noise.
Even transporting, delivering, and storing steel and other underpinning materials during the process can be incredibly disruptive. Alternative solutions are readily available
Technology in the ground engineering space has produced solutions that provide an arguably superior alternative to traditional invasive and costly underpinning techniques.
Computers can now be used to manage the delivery of cementitious grout mixes that have enough compressive strength to relevel large structures and buildings up to 10 storeys high.
With the use of computers, grouts can be delivered with surgical accuracy, creating layers only millimetres thick. This allows the grout to set quicker, creating a stable layer for the next grout injection.
This process is repeated hundreds of times over several days, creating a solid foundation that eventually provides a lifting force that slowly, gently and evenly raises the structure or building.
One example of this new technology is JOG Computer Controlled Grouting (JOG), a process that is carefully monitored with accurate survey equipment and the amount of grout directed into any of the injectors can be controlled from a central computer.
This level of control allows technicians to send more grout to areas that need additional material.
One example of this new technology is JOG Computer Controlled Grouting (JOG), a process that is carefully monitored with accurate survey equipment and the amount of grout directed into any of the injectors can be controlled from a central computer.
This level of control allows technicians to send more grout to areas that need additional material.
The outcome is a uniform lift that does not damage
the structure. Compared to traditional underpinning, JOG injection grout points are spaced more tightly at 1.0 to 1.2m, allowing for a more even injection process that minimises disruption to the structure and its occupants.
With techniques like JOG already available, the future of structural remediation is no longer speculative.
Ground engineering firms like Mainmark are constantly researching and developing
new ways to deliver ground improvement and underpinning solutions like JOG, which is considered the next evolution in engineered building stabilisation and lifting solutions.
Perhaps it’s time to respectfully leave traditional underpinning in the past and look ahead to new alternatives to the conventional methods.
Authored by Steve Piscetek, divisional manager, Mainmark Civil and MiningSteve Piscetek has extensive experience working in construction, road and water infrastructure, the mining and resources sector and offshore construction. At Mainmark, his technical acumen and pragmatic approach to safety and quality assurance has seen him successfully tackle many challenging and complex ground remediation projects.
FISHER WINDOWS
MARLBOROUGH LTD
22 Bomford Street, Blenheim
Fisher Windows - Creators of the original Ranchslider™
Our Windows and Doors are designed to make the most of what comes naturally, seeking to make the best use of light and the natural environment, while also providing the practical benefits of lower maintenance, longer life and better security.
MARLBOROUGH LTD
Fisher Windows - Creators of the original RanchsliderTM
22 Bomford Street, Blenheim
Fisher Windows - Creators of the
Ph: 03 578 1436
Fisher Windows - Creators of the original Ranchslider™
Our Windows and Doors are designed to make the most what comes naturally, seeking to make the best use of light and the natural environment, while also providing the practical benefits of lower maintenance, longer life and better security.
Our Windows and Doors are designed what comes naturally, seeking to make and the natural environment, while also benefits of lower maintenance, longer
accounts@fishermarl.co.nz
Our Windows and Doors are designed to make the most of what comes naturally, seeking to make the best use of light and the natural environment, while also providing the practical benefits of lower maintenance, longer life and better security.
Ph: 03 578 1436
accounts@fishermarl.co.nz
Ph: 03 578 1436
accounts@fishermarl.co.nz
Ph: 03 578 1436
accounts@fishermarl.co.nz
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.
QBS also install brands that are designed for New Zealand’s conditions and are locally sourced.
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.
The staff is always committed to working within a safe environment.
QBS is a member of Site Safe and the whole team is Safe Site registered.
To get in touch please phone Eddie Garden either on (03) 365 8943 or 027 438 1440, or email on eddie@qbsl.co.
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
We’ve been making bathrooms beautiful for more than 100 years.
oakleysplumbing.co.nz
The Earthquake Commission (EQC) is celebrating a triumph of research that has helped New Zealand homes become much stronger, and could soon become part of many current building designs.
The engineering breakthrough stems back to the Canterbury earthquakes when BRANZ engineer, Dr Angela Liu, observed that new or architecturallydesigned homes with mixed bracing had suffered significantly more damage than older traditionally built houses.
“You’d expect modern homes to be stronger, so it just didn’t add up, and EQC supported me to investigate why these houses were so badly damaged,” says Dr Liu, who examined the causes for the substantially damaged houses by using existing testing data and carrying out desktop studies.
The results of her EQCfunded research identified the bracing issues and led to
formal design guidance for specifically designed bracing systems in light timberframed residential buildings, which was published in 2015.
Through Dr Liu’s perseverance in presenting her results to peers and at conferences, the 2015 guidance gradually became the informal compliance pathway for seismic design of houses with specifically designed bracing systems.
EQC’s research manager, Dr Natalie Balfour, says the work by Dr Liu and her BRANZ team is a great example of how engineering research can have a real impact on the resilience of New Zealand homes.
“This is the reason why EQC invests in earthquake engineering research, as this science has a tangible impact on protecting New Zealand properties and people,” she says.
Dr Liu’s research is already having wide impact across the country, resulting in the building of stronger homes and providing greater
resilience against damage from natural hazards.
“The 2015 EQC/BRANZ guidance has had wide impact, having been taken up by professional engineers and territorial authorities across the country,” says Dr Liu.
“In 2020 it was also used to develop the good practice document ‘Residential Portal Frames’ published by Engineering NZ and the Engineering General Practitioners Group. This has further helped the industry to make use of our guidance.”
It is also likely to feature in the NZS 3604 document that is used to design homes and sets out the compliance pathway for many of New Zealand’s timber-frames buildings, which is currently in the process of being updated.
Dr Balfour says it is rare for research to be adopted into practice and compliance in such a short timeframe, due to the complexities and timing in connecting research to policy and practice.
This is a great result for New Zealand, and it is our goal to continue to see natural hazard resilience embedded in all aspects of decision-making for our communities.
“This is a great result for New Zealand, and it is our goal to continue to see natural hazard resilience embedded in all aspects of decision-making for our communities.”
With more than 45 years of joinery and woodworking experience between them, the team at Xtreme Joinery have developed a high standard of work and creativity that leaves many very happy and satisfied customers. From simple carpeted stairs to multi-unit builds to high-end architectural residential or commercial, we can do it all!
Zealand
Commission
Whai Hua o Aotearoa) advises the Government on the best ways employees can be productive to support wellbeing and how technology benefits, but also disbenefits, the workplace.
The commission is an independent Crown Entity that started in 2011 after the New Zealand Productivity Commission Act was passed in 2010.
The commission conducts inquiries on topics the Government suggests, investigates how the topic can improve productivity over time, and lets the Government know the underlying issues involved.
The Government requested the commission to conduct an inquiry regarding technological change, disruption, and the future of work.
The commission wrote a final report with recommendations on how to improve productivity and support people’s wellbeing by understanding the benefits and disadvantages of technology in the workplace.
The benefits:
• Technology creates many jobs for people, rather than replaces jobs
• There isn’t much sign of an emerging technological disruption
• Aotearoa needs more advanced technology, as it benefits the economy and workplace productivity
• Aotearoa is well-placed for faster technology adoption in some areas - Aotearoa’s policy settings generally support openness to ideas, goods, services, investment and skills.
The disadvantages:
• Important skill levels in schools are decreasing
• Due to the housing crisis it’s hard for some workers to move to better jobs
• Businesses in general lack dynamism compared to other countries
• Aotearoa should build on its strengths and address its weaknesses:
• Policy changes could be created to prepare Kiwi individuals for the future of work, making training more flexible and accessible
• Improve and increase the amount of careers advice and employment support that’s available
• Address the school system performance
• Update employment law to make people more aware of how technology is changing some workplaces and make it easier for employers (like contractors) to gain benefits like insurance and training opportunities.
Read more about what the commission found when completing its inquiry here: www.productivity.govt.nz/
inquiries/technology-and-thefuture-of-work.
To conclude - technology matters for productivity and wellbeing, but also impacts the future of work.
Firstly, the country is flexible, very skilled, and has a lot of support for people who can provide goods, services, data, ideas, technologies, and investments.
However, Aotearoa also has its disadvantages that limit people’s ability to adopt technology in the future and/or make it harder for some
people to adapt to the technological changes.
For instance, there’s a poorer socio-economic disadvantage for minorities such as Māori and Pasifika communities, and Aotearoa (by international standards) seems less enthusiastic about emerging technologies impacting Aotearoa’s social and economic aspects.
A link to the final report can be found here: www. productivity.govt.nz/assets/ Documents/223e187413/At-aglance_Technological-changeand-future-of-work.pdf
The Government requested the commission to conduct an inquiry regarding technological change, disruption, and the future of work.
MAKE
REPAIR YOUR FOUNDATION
THE SMART WAY WITH SMARTLIFT
New
owner Tim Kearins says the pressures on rental stock have only grown this year, not helped by the Auckland floods and Cyclone Gabrielle.
However, one ray of sunshine is the opportunity to successfully purchase a property.
REINZ’s latest nationwide real estate numbers showed the overall number of houses available for sale has returned to more normal levels, with sales transactions lifting in February.
Sadly, rents continue to head north. MBIE’s Tenancy Services Rental Bond Data released in March showed that median rents nationwide are up $175 per week since 2017 – reaching $575.
“Not only have thousands of Kiwis had their houses yellowed or red stickered, over 20,000 are on the public housing waiting list, and thousands remain in emergency housing including motels.
“This adds incredible pressure on rental property availability, and hence rents won’t be easing any time soon,” Tim says.
“This winter will be a good time to first-home buyers to purchase, if they can stump up a deposit and secure adequate finance.
“As well as finding a good mortgage broker, now’s the time to check out the government support schemes for many firsthome buyers, as well as consider a flatmate or border to help with debt serviceability,” he says.
The Century 21 leader says while the Reserve Bank’s decisions
impact debt affordability, the government can change things to help tenants – such as bringing back tax deductibility on interest costs.
Once 100 percent of interest could be claimed as an expense by residential landlords, but that is now being incrementally phased out. Currently at 75 percent, that moved to 50 percent on April 1, to 25 percent April 1, 2024, and to zero on April 1, 2025.
“It’s a tough time for tenants, and for vendors it’s taking longer to sell properties. However, this environment also throws up opportunities for those considering a residential investment property, as well more choice for those looking to buy their first or next home,” Tim says.
He says tenants sick of paying skyhigh rents should do their sums
on a mortgage calculator and then visit a broker to see what’s possible. They might be surprised.
“It might take some help from ‘The bank of mum and dad’ to cobble together a deposit, and you may have to rent out your spare bedroom to satisfy your banker or broker.
“Nonetheless, homeownership has proven time and time again, a great way for Kiwis to improve their standard of living and retire more comfortably.
“Now’s the best time in recent years for many to secure their future,” he says.
Dionne Wilkins & Julie-Anne Davidson pride themselves on providing the community within South Canterbury a premium real estate ser vice, customised to suit your goals! No two houses are the same, therefore the team believe that the approach to each purchase and sale needs to be thoughtfully planned & executed to ensure a positive, successful result for all parties!
If you're wanting a personalised, professionaI approach fr om a team with proven results, get in touch today!
• Experienced in new design and build sales
• Experienced in marketing rural and residential subdivisions
• Experienced in new show home viewings
• Experienced in dealing with clients from around the world
If you’re looking for an agent who is 'A Breath of Fresh Air' with a real love for property, a genuine and knowledgeable approach, and attention to detail, then Zoe is the perfect match.
- HILLSIDE HOUSES
- TOWNHOUSES
- COMMERCIAL
- INDUSTRIAL
- SPORT VENUES
- UNIQUE STAIRS
- INTERIORS
- TOWN PLANNING
- STRUCTURAL DESIGN
- SEISMIC ASSESSMENTS
- SUBDIVISIONS
- SEISMIC STRENGTHENING
- HERITAGE BUILDINGS
- ENERGY EFFICIENCY
- RETAINING WALLS
- SIGNS
Dubbed the “Town of the Future” 50 years ago by then Prime Minister Norman Kirk, Rolleston, south of Christchurch, is about to take its next big leap into the future.
As part of the Government’s NZ Upgrade Programme, around $125 million will be spent on helping people get around Rolleston more efficiently and safely, says Waka Kotahi NZ Transport Agency.
The key piece of highway infrastructure included in the package of improvements will be a 114-metre-long flyover over SH1 linking the inland ports and industrial zone on the north side of the town with the residential side and schools on the southern side.
Originally proposed on a skewed angle and measuring more than 160 metres, two rounds of public consultation, technical advice and analysis has settled on a shorter, less complex and more direct flyover.
It will also cater for people walking or on bikes, says Waka Kotahi director Regional Relationships, James Caygill.
“We’ve listened to the community throughout this extensive consultation process. We know that there are 750 pupils at West Rolleston Primary School on Dunns Crossing Road whose needs and safety are a key focus.
“Overall, people were more supportive of the recommended plan since changes were made after the first round of consultation in 2021,” James says.
Selwyn District Mayor Sam Broughton says it’s been great to work closely with the Waka Kotahi team on the muchneeded project.
“It will provide better travel options, keep our people safe and help our District’s economy grow. Connecting the residential and industrial sides of Rolleston with a flyover will future proof the town, I also I look forward to seeing much improved traffic flow around the area.
“Based on community feedback our Council will also plan coordinated upgrades to our local road network to dovetail with Waka Kotahi’s plans.”
As well as the more direct flyover which will maintain continuity of the Jones Road arterial route, there will be safety upgrades to four highway intersections and improved walking and cycling routes lining up with Selwyn District’s existing and planned shared path network.
A new two-lane roundabout will help to address a serious crash hotspot at the SH1, Dunns Crossing and Walkers Roads intersection.
“We are not just planning for the 28,000 people living in Rolleston now, but also future-proofing,” James says.
“For example, by allowing space along the highway corridor and under the flyover to add lanes in future if needed.”
Other future-focused changes to the original plan include additional highway access points to spread the traffic load and provide safer and more reliable access at the Rolleston Interchange at Weedons Road.
There will be a free left turn lane onto the highway from Hoskyns Road and a new off-ramp from the southbound service road to Rolleston Drive North, connecting to Jones Road via the flyover.
Flexible median barriers to prevent head-on collisions will be installed from the end of the Christchurch Southern Motorway north of the town through to Dunns Crossing Road and more signage installed to guide people as they enter the town environs.
The next stage for Rolleston’s transport infrastructure is detailed design starting the second half of 2023, following the current detailed business case stage, expected to be completed by mid-2023.
Alongside the detailed design stage, property acquisition and consent applications will be developed leading to a phased construction stage, expected to get underway in 2024/2025.
In terms of construction, the first step would be the Dunns Crossing/Walkers Roads roundabout which needs to be up and running so traffic can safely cross the highway before construction of the flyover begins.
The flyover itself could begin construction as early as 2026, going through to 2028.
73 Hire is your local equipment hire and landscaping supplies stop for all your machinery and landscaping needs to create the best-looking garden in the area. They understand you want to get the job done as efficiently as possible and that time is money.
Choosing to hire equipment needed for your next project means you can get the job done right the first time. Their products range from
combination rollers, to four and three tonne tip trucks, excavators, loaders, log splitters, ride on mowers, lawn care products and more.
73 Hire also has a range of supplies for landscaping to make your garden grow and look fabulous! “We have just taken on the NZ Lawn Addict agency supplying their range of the best lawn care products in NZ to make that lawn gorgeous,” says Cath. Their constantly changing range of garden art, decorative stone ranges, barks, mulches and concrete products will elevate your landscape project to the next level.
The team says, “We understand sometimes it’s hard to foresee how long a particular project will take. We are flexible. We work with our clients to meet their needs and time deadlines.”
Their equipment is well serviced, maintained and reliable, so you know your hire equipment will work without any hassle on the building site.
73 Hire is always looking for ways to improve their plant and equipment, aiming to make it easier to complete projects, save time and money.
Their wide range of equipment, from tractors to excavators,
can be used for many projects. Some of the most popular projects include garden and paddock maintenance, placing and breaking concrete, as well as general home and living projects.
The team is approachable and can help you with any concerns for your next garden project. “We are happy to help you out with anything we can. We look forward to hearing from you!”
To find out more about 73 Hire visit their website 73hire.co.nz or give the team a call on 03 347 0450 for a free quote.
MORGAN GLASS & GLAZING
Morgan Glass & Glazing incorporates Waimak Windscreens & Auto Glass to produce a top-quality automotive glass repair and replacement service in North Canterbury.
Our dedicated team has over 60 years of industry experience between them, so you can be assured that you are in safe hands when dealing with us
Locally owned and operated, we are located at Five Southern Cross Road in the Flaxton Rd Business Park, and cover all of North Canterbury including - Rangiora, Fernside, Kaiapoi, Pegasus, Woodend, Waikuku, Amberley and Oxford.
Glass repairs & replacements: Whether it's a minor crack, a fully broken window or a full window replacement, we can find you a solution.
Glazing for new builds: No one wants their new home to be cold in the winter, get your new build double glazed by our experienced team of professional glaziers in Canterbury.
Retro-fit double glazing: No one likes living in a cold home. We can retrofit double glazing into your existing frames, and we're also experienced in repairing aluminium joinery.
Commercial glass & shop fronts: Our commercial glass service is perfect for larger-scale glass and glazing jobs. We can do internal glass at your office or shop fronts glass install anywhere in Canterbury.
Frameless glass showers: Frameless Glass Showers are an easy way to take a bathroom to the next level with their extremely slick and elegant look. Get in touch with the Morgan Glass & Glazing team about installing a frameless glass shower in your home.
Glass splashbacks: A glass splashback can make a kitchen pop that much more, you can get splashbacks in a variety of colours and as a bonus, they protect your walls from any spills and splashes and are much easier to clean too.
Custom made mirror glass: Getting the perfect shaped and sized mirror to fit the look of a room can be difficult, we offer a quality custom made mirror glass service. Get in touch and we can discuss your custom mirror today.
Glass balustrades: Glass balustrades are a slick and modern looking alternative to the boring banister. They allow guests to see the view from your deck while still being a safeguard against falling hazards.
Supply & install cat or dog doors: Installing a cat or dog flap in a glass door is definitely not something you should try yourself. Leave it up to the expert team at Morgan Glass, we have over
60 years of combined experience so you know you can trust our expertise.
We're well-versed in dealing with insurance companies, and can help you through the process in order to get what you need.
We also offer services relating to:
• Glass canopies
• Emergency callout & board up service.
What's more, if you've got a cracked or chipped windscreen, we also work alongside Waimak Windscreens &Auto Glass to bring a quality auto glass repair and replacement service.
Morgan Glass & Glazing provides a prompt, efficient, friendly & professional service for all of your glazing needs.
Get in touch with us to discuss your glass repair today.
