Construction cost growth slows amidst supply chain recovery
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24 The engineered stone issue
Should New Zealand follow Australia’s suit and ban silica-based products?
34 Building infrastructure faster payoffs
SH25A rebuild delivers a significant economic boost to Coromandel Peninsula
40 Nation faces $1 trillion infrastructure bill Decades of underinvestment catching up with New Zealand
42 Making council updates easier to access Manawatū District Council launches the Antenno app
In this issue of Elevate, we kick off looking at Live Well Build Well’s tiny house initiative, which raises funds for the vital and ongoing issue of mental health for those working in the industry.
We investigate how Build NZ is driving industry achievement, look at what’s happening to construction costs, examine the new Trash 2 Treasure waste minimisation scheme, and
sector innovation.
There are pieces on the future of our infrastructure as the nation stares down the barrel of a $1 trillion bill following decades of underinvestment, and we ask if New Zealand should follow Australia’s example and ban silica-based products, plus lots more. Enjoy.
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Building resilience Live Well Build Well
By Jamie Quinn
Imagine a world where construction sites buzz not just with the clang of hammers and the whir of saws but also with the quiet hum of well-being.
Live Well Build Well (LWBW) is working tirelessly to make that vision a reality. This charity is on a mission to transform the industry, empowering tradies to take control of their mental health and creating a more resilient and robust workforce.
At the head of this initiative is Rafael Caso, a man with a passion for prevention. Having witnessed firsthand the challenges faced by tradies in the construction sector, he felt compelled to move beyond mere awareness campaigns. “My background is in residential construction H&S and civil works project management,” says Caso. “I noticed a lot of information shared for suicide awareness and mental illness crisis. I wanted to lead a more prevention-type conversation to empower tradies and builders with mental fitness knowledge so they could become more resilient and robust.”
LWBW’s approach is refreshingly “tradie-led.” Instead of bombarding builders with expert advice, the program leverages the power of shared experiences. Tradies themselves become the storytellers, offering insights and strategies that resonate with their coworkers. Caso, a content creator at heart, elaborates, “Builders and tradies share what they are
connector, came to life thanks to a perfect partnership with Unit2Go, a company specialising in transportable cabins. “This opportunity came about with the support of Rob Waddell,” explains Caso. “Rob links charities with sponsors. Rob had the relationship with Unit2Go and matching them to our program made perfect sense.”
The tiny home, a masterpiece of thoughtful design and functionality, was built for the cause, attracting enthusiastic interest from the community. It was displayed at Mystery Creek Fieldays, generating significant buzz, and ultimately sold on Trademe for a fantastic $189,000.
LWBW’s approach is refreshingly “tradie-led.” Instead of bombarding builders with expert advice, the program leverages the power of shared experiences
doing to overcome their own challenges so rather than too many white-coat experts telling them what to do they share their own insights which leads to far greater engagement.”
He interviews these individuals, capturing their stories in engaging videos that are then shared on various social media platforms.
But how do you measure the impact of such an initiative?
LWBW uses a varied approach. Social media analytics provide valuable insights into
engagement, while direct feedback from attendees at presentations offers a more personal perspective. Ultimately, the program aspires to mirror the success of similar initiatives like Farmstrong, which saw a decline in accident claims—a testament to workers’ improved focus and resilience.
One particularly innovative way LWBW is raising awareness and securing crucial funds is through the recent auction of a stunning tiny home. This brainchild of Rob Waddell, a charity
The impact of the auction served as a powerful symbol of collaboration, showcasing how businesses within the construction industry can come together to support the mental well-being of their workforce. Caso highlights, “The auction was great as it demonstrated how businesses can collaborate to further the wellbeing of a workforce by getting behind a mental health charity.” Extensive media coverage, with Caso featuring on TVNZ Breakfast and other publications, sparked important conversations about mental health in a typically stoic industry.
While the excitement of the auction may have subsided, Caso reflects on the experience with a sense of accomplishment. “The unit sold on Trademe for $189K. Our target was $195K; however, we were all in agreement that this was still a great result,” he says. The
funds raised will allow LWBW to continue creating valuable online resources and maintain their nationwide outreach programs. Caso’s infectious enthusiasm leaves no doubt that this is just the beginning. He’s already looking forward to the next opportunity to champion tradie mental health, brick by mental brick, tiny home by tiny home. “I’d love to do it all over again,” he muses.
Live Well Build Well’s approach reminds us that positive change is possible. By empowering those who build our communities to build their own resilience, LWBW is paving the way for a future where construction sites resonate with productivity and the quiet strength of a workforce that prioritises mental well-being. The success of LWBW’s initiatives rests on a network of
passionate individuals. Caso acknowledges the invaluable role played by suppliers who donated their products and services to the tiny home project. “Rob Waddell has a very dynamic team who are extremely polished in the communication required to find willing supplier partners. Like all good partnerships we want to ensure it is a win-win arrangement with builders and tradies health improvements being the main goal.” These partnerships demonstrate a willingness within the industry to prioritise the well-being of its workforce, a shift that can have ripple effects far beyond the construction site.
The impact of LWBW extends outwards, touching the lives of families and communities that rely on tradies. When a builder struggles with mental
health challenges, it can affect their work performance, impact project timelines, and potentially compromise safety. By equipping tradies with coping mechanisms and supporting a culture of open communication, LWBW is indirectly contributing to safer worksites and a more reliable construction industry.
Looking ahead, LWBW’s vision is to become a continuous presence within the construction sector. They plan to expand their online resources, offering downloadable toolkits, mindfulness exercises, and educational materials specifically tailored to the challenges faced by tradies. Caso envisions a future where mental health conversations become commonplace on construction sites, with toolbox talks addressing stress management alongside safety protocols.
Ultimately, the story of Live Well Build Well is a story of hope. It’s proof of the transformative power of shared experiences, innovative fundraising efforts, and a commitment to building a more resilient future for those who build our world. As Caso himself says, “Mental health is a huge beast and requires a collaborative approach to find solutions that make a difference.” LWBW’s tiny house may have found a new owner, but the message it embodied – that mental well-being deserves a prominent place within the construction industry – continues to resonate. It’s a message with the potential to reshape an industry, one builder at a time.
Mental health is a huge beast and requires a collaborative approach to find solutions that make a difference.” LWBW’s tiny house may have found a new owner, but the message it embodied – that mental well-being deserves a prominent place within the construction industry – continues to resonate.
Photos provided by Rafael Caso
Connect, innovate, build
The Build NZ 2024 expo
By Jamie Quinn
The Build NZ 2024 expo, which took place on 25-26 June, stands as a cornerstone event for the New Zealand construction industry.
This highly regarded expo brings together builders, contractors, architects, and industry professionals from across the country, offering an unparalleled platform for networking, learning, and innovation.
One of the biggest benefits of the Build NZ expo is its role in creating connections within the construction community. Attendees have the unique opportunity to meet and engage with industry leaders, peers, and potential clients. These interactions often lead to valuable partnerships and collaborations that can drive business growth and development. The networking opportunities at Build NZ are second to none, providing a space where relationships are formed and strengthened, which can lead to future projects and ventures.
The expo also serves as a hub for showcasing the latest advancements in construction technology and materials. With a wide range of exhibitors presenting cutting-edge products and solutions, builders and companies can stay on top of industry trends and innovations. This exposure to new technologies can significantly enhance the efficiency and quality of construction projects.
Attendees can also watch live demonstrations and gain hands-on experience with new tools and equipment.
Education is another key factor of the expo. The event features a comprehensive program of seminars, workshops, and presentations led by experts in the field. These sessions cover a broad range of topics, from sustainable building practices to regulatory changes and market forecasts. Continuous learning is crucial in this field, and the expo provides an opportunity for industry professionals to expand their expertise and stay ahead of the curve.
For companies, the expo offers a prime opportunity to showcase their products and services to a targeted audience. Exhibitors can engage directly with potential customers, demonstrating the value and capabilities of their offerings. This direct interaction can lead to increased brand visibility and recognition within the industry.
Another significant benefit of the Build NZ expo is its focus on sustainability and environmentally friendly building practices. As the construction industry grapples with the challenges of climate change and resource management, the expo highlights innovations that promote energy efficiency, waste reduction, and sustainable materials. Builders and companies can explore eco-friendly options and integrate these practices into their projects, contributing to a more sustainable future for the industry and the environment.
The expo also serves as a hub for showcasing the latest advancements in construction technology and materials.
With a wide range of exhibitors presenting cutting-edge products and solutions, builders and companies can stay on top of industry trends and innovations.
The expo also addresses the pressing issue of workforce development. With the construction industry facing a shortage of skilled labour, Build NZ provides a platform for discussing strategies to attract and retain talent. Workshops and seminars on apprenticeship programs, training opportunities, and career development can help builders and companies find solutions to this critical challenge. By focusing on workforce development, the expo ensures that the industry is equipped with the skilled professionals needed to meet future demands.
In addition to the professional benefits, the Build NZ expo
supports a sense of community and shared purpose among attendees. The event brings together individuals who are passionate about construction and dedicated to advancing the industry. This mutual support can inspire and motivate participants, reinforcing their commitment to excellence in their work.
The Build NZ expo is an indispensable event for the New Zealand construction industry. Builders and companies that attend the expo can expect to leave with new knowledge, connections, and inspiration to drive their businesses forward.
Normalisation of construction costs provides certainty for all
Construction cost growth in New Zealand has fallen below historical averages, attributed to a surge in completed building consents and the resolution of Covid-19 supply chain disruptions.
According to CoreLogic’s Cordell Construction Cost Index (CCCI), costs rose by 0.5 percent in the first quarter of the year, markedly lower than the long-term quarterly average of 1.1 percent.
According to CoreLogic’s Cordell Construction Cost Index (CCCI), costs rose by 0.5 percent in the first quarter of the year, markedly lower than the long-term quarterly average of 1.1 percent.
The annual increase of 2.3 percent represents a significant drop from the peak of 10.4 percent observed in Q4 2022, marking the lowest rate in nearly eight years.
Kelvin Davidson, CoreLogic’s Chief Property Economist, noted that construction
expenses spiked in 2022 due to ongoing supply chain issues from Covid and heightened construction activity.
He highlighted that New Zealand saw a peak of over 51,000 dwelling consents in May 2022, but since then, supply chains have stabilised
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and construction activity has moderated, reducing pressure on capacity and consequently on cost growth.
Davidson emphasised that costs have remained relatively stable since late 2023, with the CCCI indicating no significant fluctuations in materials or labour rates, which together account for up to half of new build costs, excluding land.
This normalisation in growth rates is expected to benefit both builders and consumers. It follows a period of unprecedented industry
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volatility that saw construction costs rise by 25 percent compared to pre-COVID levels.
“While construction costs and new build prices are not expected to decrease, the anticipated annual growth rate of 3-4 percent in 2024 suggests that cost spikes are unlikely,” Davidson commented.
CoreLogic’s research monitors and reports on materials and labour costs, influencing its Cordell construction solutions that aid businesses in making informed decisions, estimating rebuild and insurance quotes accurately, and managing risks effectively.
The CCCI report specifically assesses changes in construction costs within the residential market for a
standard three-bedroom, two-bathroom brick and tile single-storey dwelling.
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New scheme minimises construction waste
Construction and demolition waste accounts for 40 to 50 percent of New Zealand’s total waste going to landfills. Most of this dumping of construction waste is unnecessary. Research shows that at least half of waste could be diverted from landfills if it was sorted.
The new Climate Action Campus Ōtautahi has teamed
By Ben O’Connell
up with local construction firms to tackle the issue. The Trash 2 Treasure scheme aims to keep leftover building materials out of landfills and allow perfectly good items to have a second life.
Spokesperson Vicki Buck, who set up the Campus, says the scheme started after a good chat about what happens to construction waste and insulation offcuts with Emma Williamson of Naylor Love. Vicki says that health and safety issues around entering building sites make it difficult for construction waste recycling outcomes.
In turn, a space was opened as part of the Climate Action Campus at the former site of Avonside Girls High, where companies can bring their reusable waste. “Emma has been awesome at leading this and getting it off the ground. She’d like for it to happen in many other parts of New Zealand as well. “
The Climate Action Campus is the first school of its kind in New Zealand. The satellite school of Ao Tawhiti Unlimited Discovery sees students take climate action on issues such as water, food, and energy security.
The school spans 15 acres, nearly five of which are part of Christchurch’s post-quake red
Vicki says the scheme is expanding quickly. Wood, reinforcing mesh, doors, and furniture pieces are the most popular items. Vicki cites Naylor Love, Green Dog Insulation, Citycare Property, Southbase, and Rolleston Placemakers as some key firms that have come on board. More construction companies are looking to get involved.
zone. The collaborative Climate Action Campus is free for all primary and secondary schools.
“One of the things we teach at Campus is to minimise waste,” Vicki says. “We also have students doing woodwork creations by reusing wood, so they are loving it. We are easy for people to get to and have a
regular opening time. “We also have a small Climate Action Fund on Campus for students who wish to start their own social enterprise or business. We like for them to be able to see what’s out there that might be reused.”
Vicki says the scheme is expanding quickly. Wood,
reinforcing mesh, doors, and furniture pieces are the most popular items. Vicki cites Naylor Love, Green Dog Insulation, Citycare Property, Southbase, and Rolleston Placemakers as some key firms that have come on board. More construction companies are looking to get involved.
Pick-ups from the site are currently available on Thursdays from 1-3pm, and it’s all free. Contact the Trash 2 Treasure team or talk to someone on-site if you wish to drop items off.
For more information and the latest news on items available, visit the Climate Action Campus Ōtautahi Facebook page or feel free to email Vicki at vicki.buck@xtra.co.nz
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Four technologies driving construction innovation
By Mark Webster, senior vice president and general manager, Oracle Construction and Engineering
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.
Here are the technologies we think will lead the pack:
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.
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.
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.
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.
Intelligent construction platforms will transform the industry
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.
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
• 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.
Mark Webster Senior vice president and general manager, Oracle Construction and Engineering
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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.
Expect change
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.
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
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
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.
Anticipate problems and pitfalls
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?
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
• 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.
Turn gaps into opportunities
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
• 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 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.
Provide clarity
However you choose to communicate in times of change, make sure that you provide clarity and assurance to people. Important aspects 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.
Plan for change
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 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
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?
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?
Rob Clarke CEO of Learning Architects
The engineered stone issue
By Ben O’Connell
When you think of workplace hazards, factories and construction sites often come to mind. Growing research suggests our homes may harbour a silent threat: silica dust.
Silicosis, the lung disease caused by inhaling silica particles, is normally associated with mining or stonecutting. However, the increasing popularity of quartz and engineered stone for kitchen and bathroom countertops has brought this danger into our homes. Engineered stone is made from crushed quartz mixed with resin and contains up to 90 percent silica. Cutting,
grinding, or drilling these surfaces releases microscopic silica particles into the air, which, when inhaled, can scar the lungs and lead to silicosis.
Australia’s decision to ban engineered stone has set a precedent as the first nation to do so. The ban started on 1 July in most states and territories. It comes after hundreds of Aussie workers developed silicosis from working on engineered stone in 2015 and beyond, with campaigning unions and doctors arguing it could become the “asbestos of the 2020s” without regulation.
Kiwi businesses are forced to adapt to the sudden lack of product access. A ban here would be complex.
WorkSafe issued a 2019 alert about the risks of working with engineered stone, emphasising strict dust controls and personal protective equipment. However, the agency has not banned these products outright. As awareness of the silicosis risk grows, pressure may mount for stronger regulations.
In March, the Asthma and Respiratory Foundation NZ called for a ban on engineered stone to better protect respiratory health for all workers throughout the country. “It can take up to ten years after exposure for symptoms of silicosis to appear,” their statement said. “There are multiple alternatives and, as trusted and independent leaders in the respiratory health sector, we do not want to see workers’
Australia’s
decision to ban engineered stone has set a precedent as the first nation to do so. The ban will start on 1 July in most states and territories.
lung health deemed of lower importance than consumers’ aesthetic preferences.”
The O’Brien Group has been the largest benchtop manufacturer in Australasia for the last two decades and is five times bigger than any of its New Zealand competitors. General manager Peter O’Brien says silica dust poses no risk to tradies provided it’s not dry cut on-site. Air quality testing and wet cut and polish procedures ensure the silica does not become airborne. It’s
important to ensure all workers involved with engineered stone have adequate training, ventilation, and protective gear.
Peter says that silicosis concerns are diminishing as suppliers transition to low or zero-silica products that resemble engineered stone. His only concern with the Australian ban is the looming deadline that suppliers have over the ditch to sell silicabased engineered stone products. The New Zealand market might experience a
supply influx in the second half of the year, disrupting local business.
Other than engineered stone, the market currently offers ceramic, natural stone, and acrylic products as viable alternatives. Newly introduced by the O’Brien Group, the Imperio benchtop range is made of paper and resin yet looks like ceramic products (without the ceramic price). The development of products like the Imperio range eliminates silica dust health concerns altogether.
As awareness of the issue continues to grow, it seems likely that we will see further shifts in how engineered stone and other silica-containing products are regulated and used in the years to come.
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Employment law changes affecting the construction industry
By Tina Hwang and Marcus Beveridge of Queen City Law
Recent
changes in employment
law.
In New Zealand, employment law has historically undergone cyclical changes, influenced alternately by Labour and National governments each time they came into power. Each party typically brought about new modifications, often reversed or adjusted when the other party came back into power. With the new National Government at the end of December 2023, the employment sector once again experienced significant updates and revisions.
The recent changes include:
a. Extension of the 90 days trial period to all employers and not just those with under 20 employees (effective 23 December 2023);
b. Minimum wage increase ($23.15 per hour from 1 April 2024);
c. Extended timeframe to raise personal grievance claim for sexual harassment (12 months instead of 90 days);
d. Worker Protection (Migrant and other Employees) Act 2023 (effective 6 January 2024)
e. Fair Pay Agreements Repeal (repealed December 2023);
f. Accreditation (some changes there);
g. Changes to immigration policies (generally making work visas difficult); and
h. Migrant Exploitation Protection Visa (effective July 2021 but more common now).
These recent changes affect employment, immigration, companies as well as the construction industry often heavily reliant on overseas workers.
Common issues
The Ministry of Business, Innovation and Employment, and the Employment Relations Authority have been combatting migrant exploitation for quite some time now.
The Migrant Exploitation Protection Visa was a implemented to assist those subject to migrant exploitation. However, applying for this special visa without fully understanding the consequences can have damaging effects.
For example, employers hiring workers on Migrant Exploitation Protection Visa can sometimes experience more delays and employees can also be caught out because the visa takes time (both to obtain and to move on from).
In addition to delays, the visa can trigger unexpected requirements to prove three years’ experience to revert to a work visa, obtain proof of English, reduce overall time on a work visa, and may not cover partners or children. So, it is important that both employers and employees understand these implications.
Contractors should be careful that workers on site have legal eligibility to work in New Zealand. Recent investigations by Immigration New Zealand (who can enter sites without notice) have found illegal workers and the ramifications can flow onto their contracts and head contractors who may have had no knowledge, but may not have taken the necessary steps (or have the relevant clauses in their construction contracts) to protect themselves.
With hard times and a questionable recession or a cost-of-living crisis, numbers of redundancies are rising. However, many employers fail to do this correctly, exposing themselves to personal grievance claims.
Common issues in the market include errors and failures in termination, redundancies, performance managements, errors in calculating annual leave, public leave, and sick leave entitlements.
Fixed-term contracts are also commonly misused because the Employment Relations Act 2000 states that you can only offer a fixed-term contract for a specific and justified reason (such as work being offered to cover somebody’s maternity leave, or a fixed-term contract for a specific project or seasonal work that will expire at a specific time). Without a specific reason, a fixed-term contract will be held to be unjustified and unsustainable
with exposure to a personal grievance claim.
Contractors should be careful that workers on site have legal eligibility to work in New Zealand. Recent investigations by Immigration New Zealand (who can enter sites without notice) have found illegal workers and the ramifications can flow onto their contracts and head contractors who may have had no knowledge, but may not have taken the necessary steps (or have the relevant clauses in their construction contracts) to protect themselves.
Clauses in the construction contract should make workers’ eligibility to work a subcontractor’s responsibility to ensure compliance with employment regulations and indemnities were possible.
Furthermore, the constant debate over whether a worker is a contractor or employee remains a live issue. This is especially risky in the
construction industry where many workers are “hired” as “contractors” but may be performing roles more akin to an “employee”.
This exposes the “employer” if found to be an employment relationship, as not only will there be exposure to a personal grievance claim, but may create further extensive obligations for annual leave, sick leave and other entitlements that can be retrospectively applied.
The recent Uber driver decision in October 2022
found that four specific Uber drivers were in fact employees and not contractors.
This is currently subject to an appeal in the Court of Appeal which had a two-day hearing in March 2024 with a decision yet to be released. Furthermore, in July 2023 the courts found six women in Gloriavale were in fact employees and not volunteers. These decisions will have huge consequences to not only the employment sector, but the construction industry where a simple contract for services stating that somebody is a contractor may not be sufficient.
In the growing trend of personal liabilities for directors of companies (Mainzeal), and criminal prosecutions by Worksafe for PCBUs under the Health and Safety at Work Act 2015, in addition to the trend of suing not only the company employer but the directors personally for breaches under the Employment Relations Act 2000, it is imperative that protective measures are taken to ensure compliance, but also to ensure you don’t get sued.
This exposure is in addition to the various investigations by Immigration New Zealand and Labour Inspectorates who often target the construction industry as one that is prevalently breaching regulations. Are you exposed?
If you have any property, construction, or litigation queries, please feel free to contact Tina Hwang (Director) or Marcus Beveridge (Managing Director) at Queen City Law.
We have taken care to ensure that the information given is accurate, however, it is intended for general guidance only and should not be relied upon in individual cases. Professional advice should be always be sought before any decision or action is taken.
Tina Hwang Queen City Law
Marcus Beveridge Queen City Law
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Building infrastructure faster payoffs for local communities
A recent report from Infrastructure New Zealand indicates that the swift reopening of State Highway 25A on the Coromandel Peninsula after the severe storms in January 2023 contributed to an $85.88 million increase in the region’s GDP.
Infrastructure New Zealand chief executive, Nick Leggett, says “This is a great local economic story, brought about by excellent planning, co-operation and delivery from the public and private infrastructure sectors working together.
Infrastructure New Zealand presented a report to Minister of Transport Hon Simeon Brown. The report includes a case study on the replacement of the SH25A Taparahi Bridge, highlighting its associated economic benefits.
The aim is to support the Government in refining New Zealand’s infrastructure strategies and enhancing
With an infrastructure deficit of more than $200 billion New Zealand cannot rely on emergency situations such as that experienced in the Coromandel to drive high performance and faster pace in the building of our critical infrastructure.
planning, consenting, and procurement systems.
“Considering the scale of the damage, which included the total loss of a 100-metre section of the road, the speed of delivery for reopening SH25A is an extraordinary achievement and illustrates that if we get the policy and regulatory settings right, New Zealand can build vital infrastructure rapidly and to a high standard.”
Nick notes these are impressive figures and says they highlight the value of the accelerated rebuild, but the real value lies with the local community and businesses that have benefitted from the increase in economic activity due to the reinstatement of SH25A.
“By studying what made the SH25A project so successful we can learn how to gain significant efficiencies and faster delivery of key infrastructure projects in the future,” he says.
The report sets out several standout factors that facilitated the accelerated completion of SH25A.
“With an infrastructure deficit of more than $200 billion New Zealand cannot rely on emergency situations such as that experienced in the Coromandel to drive high performance and faster pace in the building of our critical infrastructure,” Nick says.
“As the report advises, we need to adopt streamlined consenting, client and
alliancing approaches, without compromising design standards or the quality of the structure.”
Infrastructure New Zealand is encouraging Government ministers to adopt the report’s key recommendations, including empowering the NZTA board and senior management to adopt a mature approach to procurement and Government infrastructure agencies driving efficiency through standardisation, where appropriate.
The report also recognises that New Zealand’s planning and consenting attitudes must be improved to hasten the building of infrastructure for wider economic gains.
“Currently value is solely recognised by what is lowest cost, whereas real value is achieved through more careful planning followed by faster delivery of projects that do not cut corners on design or materials. This provides a rapid return for economic productivity and allows local communities and businesses to recover faster,” Nick says.
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Compact efficiency PC25MR-5 mini excavator
Komatsu’s new PC25MR-5 mini excavator delivers on size and performance.
Carl Grundy, National Sales Manager, Utility from Komatsu says the model fills a gap in the market for Komatsu and is sure to be popular addition to many of their customers fleets.
“The PC25MR-5 is two-inches wider than the PC18MR-5, but can still be still towed on a trailer, rather than having to invest in a truck to move it from site to site. It’s also still compact enough at 1.5m wide to suit the tight worksites you find on residential builds or city projects.
“This model will be the perfect addition for landscapers or contractors
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This model will be the perfect addition for landscapers or contractors doing demolition or digging work. It’s a user-friendly model, that still delivers on performance.
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Nation faces $1 trillion infrastructure bill
New Zealand is facing a significant challenge ahead, with projections indicating a staggering bill of up to $1 trillion over the next 30 years.
This immense investment is crucial not only to modernise the country’s infrastructure, but also to future-proof it against emerging challenges, including the impacts of climate change.
The scale of the financial commitment was highlighted in ASB’s Infrastructure Report, released in April. According to ASB senior economist, Mark Smith, New Zealand has long grappled with underinvestment in core infrastructure.
This has resulted in an infrastructure deficit estimated at approximately $200 billion, exacerbating bottlenecks and constraining economic productivity.
Smith pointed out that historically, New Zealand’s investment in infrastructure has hovered around six percent of
GDP, significantly below the OECD average. He noted that this shortfall has correlated with lower productivity and income levels compared to other OECD countries.
Looking ahead, New Zealand anticipates significant population growth, with projections suggesting an increase of between 500,000 to two million people over the next three decades.
Meeting this demand will require between 175,000 to 700,000 additional dwellings and associated infrastructure.
Furthermore, the country’s vulnerability to climate change was starkly illustrated by the $5-7.5 billion in damage inflicted
by Cyclone Gabrielle in February 2023, underscoring the urgent need for resilient infrastructure.
Smith emphasised the necessity for a reimagined approach to infrastructure investment. He stressed the importance of carefully selecting projects, exploring innovative funding mechanisms, and updating policy measures to effectively manage future infrastructure demands.
Smith also highlighted the need for political consensus and long-term planning across party lines to provide stability and certainty for investment decisions.
Despite fiscal constraints, Smith commended the coalition Government for prioritising
By making these investments wisely and collaboratively, New Zealand can pave the way for sustained economic growth and improved quality of life for its residents in the decades to come.
infrastructure in the 2024 Budget, aiming to establish a sustainable, long-term investment plan. However, he emphasised the importance of achieving a broader consensus on public funding options and suggested potential roles for increased private sector involvement to supplement resources.
In conclusion, addressing New Zealand’s infrastructure challenges requires a strategic shift towards comprehensive planning, innovative financing, and robust policy frameworks.
This approach will ensure that infrastructure not only meets current needs but also anticipates and adapts to future challenges, such as population growth and climate change impacts.
By making these investments wisely and collaboratively, New Zealand can pave the way for sustained economic growth and improved quality of life for its residents in the decades to come.
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Making council updates easier to access
Amid the deluge of emails, alerts, and advertisements bombarding us daily, it’s increasingly easy to become overwhelmed and tune out from the incessant social noise.
However, in doing so, we risk missing out on crucial information that truly matters.
In response to the challenge of effectively engaging with residents across the diverse neighbourhoods of
the Manawatū district, the Manawatū District Council has launched Antenno: a userfriendly, free mobile application designed to bridge the gap between the council and its community.
The app keeps residents informed about important council updates and empowers them to actively participate by reporting local issues and sharing community events.
Rhi Galpin, the Engagement and Communications manager, highlights the council’s strategic approach.
“We recognised the need for a communication solution that is convenient and accessible to all residents. It was crucial to find a system that does not require cumbersome logins, allows for personalised content preferences, and facilitates seamless communication from residents to us.”
While traditional communication channels such as websites, social media platforms, print media, community events, and radio broadcasts continue to play essential roles, Antenno offers a more targeted and interactive experience.
By enabling users to pinpoint their location and specify their interests, the app delivers customised information directly relevant to their needs. This eliminates the need for users to
sift through generic updates or navigate complex interfaces to find relevant information.
Moreover, Antenno simplifies the user experience by eliminating the requirement for a login or password, while still requesting basic location details to tailor notifications effectively. Whether users are at home, work, or school, they can rest assured they will receive timely news and alerts pertinent to their specific location.
The introduction of Antenno marks a significant stride towards fostering a more connected and informed community within the Manawatū district.
Residents, whether long-standing or new, homeowners or renters, now
have a powerful tool at their fingertips to stay updated on local developments and contribute to the betterment of their neighbourhoods.
This initiative underscores the council’s commitment to leveraging technology for community engagement and transparency. By encouraging residents to download Antenno from the Apple App Store or Google Play store, the council aims to empower them with the information they need to actively participate in local governance and community life.
As residents embrace Antenno, they gain not only a tool for staying informed but also a platform for voicing their concerns, celebrating achievements, and fostering
a stronger sense of community pride.
By facilitating direct communication and personalised updates, Antenno enhances civic engagement and ensures that residents remain well-informed participants in shaping the future of the Manawatū district.
In conclusion, Antenno represents more than just a technological innovation; it symbolises a commitment to open communication, responsiveness to community needs, and the cultivation of a thriving civic culture.
By embracing this tool, residents can play an active role in shaping their neighbourhoods and ensuring that their voices are heard within the broader framework of local governance.
The economic and social drivers behind Kiwis moving to Australia
For many years, the trend has shown that more New Zealanders are relocating to Australia than Australians are moving to New Zealand.
Approximately around 700,000 Kiwis reside in Australia compared to about 70,000 Australian-born individuals living in New Zealand.
Currently, it is estimated that 2,000 New Zealanders move to Australia each month.
Since mid-2022 and into 2023, there has been a noticeably greater outflow of Kiwis across the ditch. According to the Australian Bureau, 12,650 New Zealanders arrived with the intention of staying in the first three months of 2023, a 42 percent increase from the previous three months.
For many New Zealanders, Australia has never looked better. Factors such as cheaper rent depending on the location, better income, and the prospect of gaining citizenship after just four years are appealing.
Tradies, in particular, often earn significantly more in Australia than in New Zealand.
According to au.talent.com, the average builder income in Australia is $105,000 (NZD) per year or $53.85 per hour. Starting salaries for entry-level positions are $79,040 annually, while experienced workers can earn up to $179,960.
In contrast, according to Jobted, the average annual pay for a builder in New Zealand is $59,600 (NZD).
FIFO (fly in, fly out) employment is in high demand in Australia and is becoming an increasingly
For many New Zealanders, Australia has never looked better. Factors such as cheaper rent depending on the location, better income, and the prospect of gaining citizenship after just four years are appealing.
common career option for young professionals.
FIFO allows job seekers to obtain employment in rural or remote areas without having to relocate permanently. It also helps firms tackle labour shortages in areas where local labour is unavailable.
FIFO workers typically have limited downtime and must work long hours, often with weekly 12-hour shifts and rosters of seven days on followed by seven days off, or 14 days on and 14 days off.
While the job can be challenging, the attractive wages compensate for the long hours and time away from home.
With the New Zealand housing market the slowest it’s been in 40 years, many Kiwis are moving to Australia for, specifically, the higher wages. They often return home after spending several years abroad, continuing their work in New Zealand while owning real estate.
The migration trend from New Zealand to Australia is driven by a combination of economic opportunities, better living conditions, and the prospect of citizenship.
While the journey may come with challenges, the benefits of higher wages are improved living standards make Australia an appealing destination for many New Zealanders.
As both nations continue to share a unique bond, these migration patterns are likely to persist, shaping the social and economic landscapes of both countries.
How local government finances infrastructure
Research from the New Zealand Infrastructure Commission, Te Waihanga, has examined the tools local government uses to finance infrastructure investment and how these are being used.
Local government owns and operates over one-quarter of New Zealand’s infrastructure assets. It provides local roads, water supplies and wastewater, and public transport networks. It also provides social infrastructure like parks and libraries.
A range of financing options, but at a cost
Today, councils need to invest much more in renewing and replacing the infrastructure they’ve already got. While essential, this work doesn’t tend to generate new economic activity or new revenue for councils.
“Councils have three main ways to borrow for new investment; borrowing through the Local Government Funding Agency, issuing debt directly to investors and banks, or special-purpose vehicle financing under the 2020 Infrastructure Funding and Financing Act,” says Peter Nunns, the Commission’s Director of Economics.
“These financing tools are complementary and, together, offer councils the ability and flexibility to take on additional debt to pay for infrastructure. However, options tend to get costlier as council debt levels increase.
Debt is about spreading costs but in an equitable way
“It’s important to look carefully at what we’re using debt for. Debt may be appropriate to smooth out the cost of large, lumpy renewal projects.
“However, pay-as-yougo finance is likely to be more appropriate for predictable, ongoing renewal programmes,” Peter says. “We found that in the past, local government frequently used debt to pay for new infrastructure, which tended to create new sources of revenue. Prior to the 1970s, New Zealand councils were in the business of building infrastructure networks from scratch, unlocking a step change in urbanisation and economic growth.
“Today, councils need to invest much more in renewing and replacing the infrastructure they’ve already got. While essential, this work doesn’t tend to generate new economic activity or new revenue for councils.
“Even with many councils currently raising rates, however, debt is currently rising faster than revenues. If this trend continues, councils will eventually need to cut back future infrastructure investment to service their debt,” he says.
Good asset management planning and investment prioritisation is needed
Better asset management and infrastructure planning practices are needed regardless of how public infrastructure providers pay for their investment programmes.
Recommendation 39 in Rautaki Hanganga o Aotearoa, the New Zealand Infrastructure Strategy, emphasises the need to lift the standard of asset management planning and long-term investment planning. This is essential for understanding our investment needs and budgeting for them.
Recommendation 43 in the Infrastructure Strategy recommends rigorous cost-benefit analysis to help maximise the value of new infrastructure to society.
“This is essential for ensuring that we get the best ‘bang for buck’ from the money that we are investing. When we invest in infrastructure, we must think carefully about how we use debt. Debt is most appropriate for new investment that will deliver long-term benefits.
“Where possible, we should match debt-financed infrastructure with new revenue streams to avoid constraining future investment opportunities,” Peter says.
LowCO home pioneers low-carbon living
Fletcher Building has embraced the challenge of reducing carbon emissions with the launch of LowCO, a pioneering residential project aimed at transforming home construction in New Zealand for a sustainable future.
Residences are significant contributors to carbon emissions, necessitating a shift in building practices. Leveraging expertise and materials across its various businesses, Fletcher Building is driving this transformation.
“On average, homes emit seven times more carbon over their 90-year lifespan than what is sustainable to limit global warming to 1.5 degrees Celsius,” explains Steve Evans, Chief Executive of Fletcher Building’s Residential and Development Division.
“With LowCO, we’ve designed homes that emit seven times less carbon than traditional homes, setting a new standard for modern living. These homes not only reduce carbon but also cut energy and water consumption significantly.”
The inaugural LowCO build, located at Fletcher Living’s Waiata Shores development, includes a three-bedroom detached home and a terrace block, both adhering to New Zealand’s stringent carbon budget for new builds.
Careful planning went into selecting systems and products to minimise both embodied and operational carbon emissions.
“LowCO represents a collaborative effort across Fletcher Building, uniting us in our commitment to build sustainable homes that enhance the lives of future generations,” adds Steve.
“While the initial costs of building high-performance homes like LowCO may be slightly higher, the lifecycle
LowCO represents a collaborative effort across Fletcher Building, uniting us in our commitment to build sustainable homes that enhance the lives of future generations.
While the initial costs of building high performance homes like LowCO may be slightly higher, the lifecycle savings from reduced electricity and water use make them more economical in the long run.
savings from reduced electricity and water use make them more economical in the long run,” Steve notes.
Fletcher Living aims to engage with financial institutions to integrate long-term building performance into homeowners’ financial considerations.
Nicola Tagiston, Head of Sustainability for Fletcher Living, underscores that LowCO extends beyond constructing four high-performance homes. “It catalyses vital discussions about the future of housing in Aotearoa,” she says.
Industry partners such as Architype, Sustainable Engineering, Beca, and Watercare have contributed expertise to LowCO, helping find practical solutions to enhance home building.
Smart monitoring integrated throughout LowCO will capture three years of energy and water usage data, advancing the understanding of thermal performance and guiding future enhancements. The project’s sustainability has earned it a coveted 10 Homestar built rating from the New Zealand Green Building Council.
Steve emphasises that “LowCO serves as both a beacon for the industry and a call to action that transformative change is possible. To spur further innovation, we will make LowCO architectural plans and product lists freely available on the Fletcher Living website.” Through LowCO, Fletcher Building demonstrates leadership in sustainable housing, paving the way for a greener future in New Zealand and beyond.
Steve Evans and Nicola Tagiston with The Honourable Chris Penk Minister of Building and Construction
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Timber Unlimited has collated technical notes on timber design in collaboration with the Timber Design Society.
The first, published in December 2023, addresses how NZS AS 1720.1 updated the bearing perpendicular to the grain characteristic strength for seasoned Radiata pine and Douglas fir from 8.9 MPa to 6.9 MPa. The second, published in March 2024, addresses timber density and design standards.
The text below summarises these technical notes. To read the technical notes in full, visit https://timberunlimited. co.nz/resources.
Bearing perpendicular to the grain
The updated NZS AS 1720.1 standard revised the characteristic strength for seasoned Radiata pine and
By Ben O’Connell
Density can vary within a tree, from tree to tree, and from species to species. However, the moisture content of the wood also heavily affects density, as the cells can hold varying amounts of water.
Douglas fir when loaded perpendicular to the grain from 8.9 MPa to 6.9 MPa. This is a change from the originally proposed value of 4.5 MPa and other previous standards.
Wood mainly comprises long, tube-like cells. As a structural material, wood reacts differently depending on how it’s loaded. When loaded parallel to the grain, each wood fibre acts as a hollow column supported by the surrounding fibres. When loaded perpendicular to the grain, the cell walls are compressed and cannot provide much resistance.
Wood is much weaker and softer when compressed perpendicular to its grain direction.
NZS AS 1720.1 provides a bearing strength value, not a truly compressive strength perpendicular to the grain. Albeit similar, a bearing strength comes from one object pressing into the other and, as such, includes the interaction’s localised effects. Notably, unlike many failure modes characterised by a sudden drop in strength, the perpendicular to grain bearing or compressive strength is theoretically hard to define as
it increases until the point of loading and point of support are in contact.
The technical note reviews various testing methods, including the ‘pure block test’ and ‘rail test,’ to evaluate wood’s compressive performance. It also notes Eurocode 5 and discusses test method differences and material standard shifts. Engineers continue turning to overseas design standards and have noted various modification factors used to verify bearing perpendicular to the grain.
The technical note concludes with an example calculation to illustrate the determination of bearing strength according to NZS AS 1720.1 and EN1995-1-1. This underlines how difficult it is to make direct comparisons due to differences in test methods and material standards between New Zealand and Europe. The shift towards
more accurate and potentially conservative values for bearing perpendicular to the grain reflects ongoing research and international standard improvements.
It’s all about density
Density is a measure of mass per volume. In wood, the size of cell cavities and the thickness of cell walls affect density. Density can vary within a tree, from tree to tree, and from species to species. However, the moisture content of the wood also heavily affects density, as the cells can hold varying amounts of water.
The new NZS AS 1720.1 provides values for both the design and characteristic densities of all structural sawn timber grades, standard LVL
grades, plywood, and timber poles. The design density is defined as the mean density estimated with 75 percent
confidence at 15 percent moisture content. In contrast to the Australian standard AS 1720.1, the NZ standard
provides different density values for the different sawn timber grades.
NZS AS 1720.1 and other standards provide design and characteristic densities for structural timber, LVL, plywood, and timber poles. These values are essential for assessing the self-weight of timber members and determining joint strengths and the charring rate in fire resistance calculations.
However, finalising comprehensive density values is challenging due to the performance-based nature of engineered wood products and the variation of timber grades.
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m 07 859 1118 k aub@stainlesselectrical.co.nz 9 75 Ingram Road, Rukuhia, Hamilton, New Zealand www.sep.co.nz
