In this issue of Elevate, we delve into the rise of AI in the construction industry and its ongoing impact.
We examine building consents and census figures to determine the state of New Zealand’s housing stock, which shows fewer builds and more homeowners.
You’ll find information about the regional infrastructure to increase the sector’s resilience, advancing sustainable land use practices, and quakeproofing homes.
NZIER survey shows general decline in business confidence
By Ben O’Connell
According to the mid-year NZIER (New Zealand Institute of Economic Research) Quarterly Survey of Business Opinion (QSBO), a net 35% of firms expect the general economic outlook to deteriorate over the coming months.
The NZIER report points to a further decline in business confidence in the June quarter as higher interest rates continue to dampen demand across the nation’s Zealand economy.
The report says the construction sector is the most downbeat, with a net 65% of building firms surveyed anticipating a worse economic future. “With weak demand across housing, commercial, and government construction work, prices in the construction sector remain under pressure while costs remain intense,” the NZIER reported in a statement.
“The manufacturing sector was also very downbeat, with a net 63% of manufacturers expecting a deterioration in general economic conditions over the coming months.
“Domestic demand for the sector remains weak, largely due to the weaker
construction demand. This continued to reduce the pricing power of manufacturers, which has driven further deterioration in profitability for the manufacturing sector.
“This environment of higher interest rates and heightened uncertainty about the outlook has made businesses much more cautious about hiring and investment.
“A net 35% of firms plan to reduce investment in buildings, while a net 27% plan to reduce investment in plant and machinery over the coming year. Many firms are holding off on investment until they feel more certain about when demand will recover.”
Meanwhile, a quarter of firms reported they had reduced
This softer labour demand and the increased labour supply since the reopening of international borders continued to drive the easing in labour shortages.
staff numbers in the June quarter due to weak demand.
“This softer labour demand and the increased labour supply since the reopening of international borders continued to drive the easing in labour shortages. It is now easier for firms to find both skilled and unskilled labour.”
Weak demand has been the leading factor driving the reduction in capacity pressures in the national New Zealand economy, and weak demand is increasingly becoming the key concern for businesses.
Over 60% of firms report a lack of sales as the primary constraint on their business, a significant increase from the 42% of firms that reported that as the primary constraint on their business a year ago.
The NZIER has conducted its QSBO since 1961. It is New Zealand’s longest-running business opinion survey.
Annual number of homes consented down 20 percent
By Ben O’Connell
Per Stats NZ, 33,632 new homes were consented to in the year ending August 2024, down 20% compared with the year ending August 2023.
Construction and property statistics manager Michael Heslop says, “The number of multi-unit homes consented in the year ended August 2024 is the lowest in the last three years.”
He adds that the number of apartments consented to in the year ended August 2024 is the lowest in ten years.
All regions except Otago saw fewer new homes consented to compared with the year ended August 2023. In Canterbury, 6,713
homes were consented to, down 9.4%.
“The annual number of homes consented in the Otago region was higher than Wellington for the first time since the year ended October 2017,” Heslop said.
Tough times build tough businesses, and the results show that the sector is adapting, finding efficiencies, and diversifying its business models.
In the year ending August 2024, 15,597 stand-alone houses were consented to, down 9.7% compared with the year ending August 2023.
There were 18,035 multi-unit homes consented, down
27%, over the same period. Multi-unit homes include townhouses, apartments, retirement village units, and flats.
A recovering sector
Master Builders CEO Ankit Sharma said there’s no denying the current economic conditions have resulted in a slowdown, but that the industry needs to start laying the foundations for the recovery.
“We recognise this is a challenging economic climate, and a lot of our members will be feeling the squeeze.
“Tough times build tough businesses, and the results show that the sector is adapting, finding efficiencies, and diversifying its business models. It highlights we have matured as a sector, and with the right mechanisms and support, we can become even more resilient,” Sharma said.
In Master Builders’ annual State of the Sector survey, 83% of respondents flagged access to finance as the biggest challenge for building and construction in the current environment.
Survey respondents said price escalation management (48%) and project delays (18%) were the two largest concerns heading into the build process.
“It’s incredibly encouraging to see that most homeowners report positive building experiences,” he added.
“We know that many builders are very good at developing strong and positive relationships with their clients.
“Communication and transparency are critical, and having honest and open conversations about the risks and budget contingencies can help ease concerns and further encourage confidence.”
Census shows increased home quality and ownership
By Ben O’Connell
2023 Census data shows that the quality of New Zealand’s housing stock has improved.
Homeownership has also increased, with 66% of New Zealand households now owning their home or holding it in a family trust, compared with 64.5% in 2018.
Stats NZ principal analyst Rosemary Goodyear says this increase in home ownership, although small, is a reversal of the falling rates we have seen since homeownership peaked in the early 1990s.
“Census data shows an improvement in housing quality since 2018, which is important as damp and mould can impact people’s
health and wellbeing,” she says. In 2023, around 18% of dwellings were damp at least some of the time, compared with 21% in 2018.
Over one million homes have heat pumps, which is around 370,000 more than at the time of the 2018 Census. The Canterbury region had the highest proportion of homes with heat pumps at 81.2%, compared with 71.1% in 2018, but Auckland saw the largest increase – from 39.5 to 66.3%.
About nine out of ten households have internet access, but this varies by area. Internet access was lower in
more rural districts: about 80% in the Buller district, for example.
The Auckland region had the highest median weekly rent in the country at $540, followed by Wellington ($500) and Bay of Plenty regions ($460).
Housing costs rise
Median rent has risen by nearly a third since 2018. Over half a million households (565,974) rented their home in 2023. The median weekly rent paid by households increased to $450 in 2023, up from $340 in 2018 (a 32.4%
increase). In 2013, this figure was $280, a 21.4% increase between 2013 and 2018.
The Auckland region had the highest median weekly rent in the country at $540, followed by the Wellington ($500) and the Bay of Plenty regions ($460).
More than 100,000 homes were empty per this Census. 111,666 were empty, and 113,499 had their residents away when the survey was conducted. Empty homes, or ghost homes, might be uninhabited as they are holiday homes, under renovation, or new builds whose residents have yet to move in.
This information is all courtesy of Statistics New Zealand.
Hastings & Hawkes Bay
Asbestos found in concrete stockpiles
Stockpiled waste concrete is to be tested after asbestos was discovered in dumped concrete at Broadlands Road Landfill, the Taupō District Council reported in August.
The Council, as part of its solid waste operations, provides for the dumping of concrete debris at the landfill site and then recycles it, selling this material as crushed concrete.
Samples were taken from the concrete stockpiles at the landfill after crushed concrete being used on a council project was suspected of containing asbestos.
Two of those samples found a low-level presence of asbestos. No asbestos was found in the crushed concrete at the project site.
Taupō District Council is following expert advice to guide its response to this situation and has been advised it will need to undertake an extensive sampling programme.
Of the twelve samples from the landfill stockpiles taken to date, ten have come back as safe, and two samples have come back at the low end of the low level of contamination.
By Ben O’Connell
Of the twelve samples from the landfill stockpiles taken to date, ten have come back as safe, and two samples have come back at the low end of the low level of contamination.
The health and safety of our community is absolutely crucial, so we are following expert advice on how to manage the stockpiles, including keeping these stockpiles damp to prevent asbestos fibres getting into the air, Council chief executive Julie Gardyne said.
“The health and safety of our community is absolutely crucial, so we are following expert advice on how to manage the stockpiles, including keeping these stockpiles damp to prevent asbestos fibres getting into the air,” Council chief executive Julie Gardyne said.
She said that the concrete stockpiles are away from the main landfill operations and that with the watering system in place, the Council are comfortable with the fact that there is no risk to landfill staff
or visitors. It has put concrete recycling at the site on hold, however.
“We know our community enjoys being able to take advantage of the affordable disposal of their concrete waste, but while this issue is being investigated, we want to keep everyone safe, so concrete is not currently being accepted for recycling.
“It can be disposed of as general waste at the general waste disposal price of $210 per tonne. We expect this
may need to continue for some months.
“We are taking a very cautious approach to managing this situation, and while we expect test results to continue to come back as safe or at low levels of contamination, we want to do everything we can to ensure we identify and dispose of any crushed concrete that could potentially pose a risk for the community.”
Asbestos Removal Services
We are taking a very cautious approach to managing this situation, and while we expect test results to continue to come back as safe or at low levels of contamination, we want to do everything we can to ensure we identify and dispose of any crushed concrete that could potentially pose a risk for the community.
Anyone who has purchased crushed concrete from the Broadlands Road Landfill should call Taupō District Council on 07 376 0899 to arrange for appropriate testing. For more, go to www. taupo.govt.nz/concrete.
How asbestos enters concrete
Typically, crushed concrete is used in the construction of roads and driveways, a simple way to recycle such material. But how does asbestos enter concrete at all?
Asbestos was common in buildings constructed before
the 80s, across cement sheeting, pipes and insulation, and flooring adhesives and ceiling materials. When these buildings are demolished, the asbestos-containing materials (ACMs) can break apart and mix with concrete rubble.
Concrete from demolished structures is often crushed and recycled for use in new projects. If it’s not properly identified and removed during demolition, it can be inadvertently mixed into the concrete during recycling. This can lead to contaminated stockpiles.
In some cases, asbestos may not be detected before demolition due to insufficient inspection. During demolition, improper handling of asbestos materials can cause fibres to become airborne or embed into concrete rubble, leading to contamination.
Further, asbestos-containing materials may be mistakenly classified as non-hazardous waste if proper testing isn’t conducted, leading to unsafe disposal in stockpiles intended for reuse.
As such, pre-demolition surveys and asbestos
testing are critical in identifying asbestos before any demolition or recycling activities. Trained professionals must remove asbestos before concrete demolition to ensure it doesn’t contaminate stockpiles.
When asbestos is detected, following expert advice – just as the Taupō District Council has – is paramount.
Are 3D-printed concrete homes New Zealand’s path to reducing carbon emissions?
By Nicole Valdez
As New Zealand strives to meet its net-zero carbon goals by 2050, the construction sector is under increasing pressure to find sustainable solutions.
The advent of 3D-printed concrete homes could play an essential role in reducing our carbon emissions, providing an environmentally friendly alternative to traditional construction methods.
A carbon-reduced alternative to traditional methods
The environmental impact of traditional construction methods is significant, with the sector responsible for around 20% of New Zealand’s carbon emissions. Traditional building materials like timber and steel require substantial energy to produce and, further, generate a considerable amount of waste during construction. Conversely, 3D-printed concrete homes have the potential to reduce these emissions considerably. A recent study comparing three housing types—3D-printed (3DP), light steel-framed (LSF), and timber—revealed that 3D-printed homes emit 20% fewer carbon emissions than timber houses and 25% less than LSF houses.
This reduction is primarily due to the precision of 3D printing technology, which uses only the necessary amount of material, minimising waste and excess production. By
utilising advanced software like Building Information Modelling (BIM), the process is tightly controlled, ensuring that resources are used efficiently from start to finish. The cradle-to-cradle system used in assessing the environmental impact of 3D-printed homes has the potential to drastically reduce carbon emissions across their entire lifecycle.
Localised production and sustainable materials
One of the key advantages of 3D-printed concrete homes is the ability to source materials locally, which reduces the need for longdistance transportation and the associated fuel emissions.
QOROX, a New Zealandbased company leading the way in 3D concrete printing, has been working with local materials to optimise the sustainability of their products. Around 80% of the materials used in QOROX’s construction process are sourced locally, including a New Zealand-specific concrete mix designed to meet local standards.
Additionally, researchers at the University of Canterbury, led by Dr Giuseppe Loporcaro, are exploring the integration of low-carbon and recycled
One of the key advantages of 3D-printed concrete homes is the ability to source materials locally, which reduces the need for long-distance transportation and the associated fuel emissions.
materials into 3D-printed concrete. One innovative approach involves using waste products like mussel shells to create low-carbon building materials. Ultimately, these efforts aim to reduce the volume of concrete needed in construction, further lowering the carbon dioxide emissions associated with the process.
Energy efficiency and resilience
Energy efficiency is another area where 3D-printed homes outshine traditional builds.
The design flexibility offered by 3D printing allows for custom thermal insulation solutions, optimising energy conservation. Homes built using this technology can be tailored to maximise natural light, reduce heating and cooling needs, and minimise overall energy consumption. A 2021 study from the University of California found that 3D-printed homes are up to 30% more energy-efficient than conventional houses.
Moreover, 3D-printed homes are designed to
Image courtesy of Xiangli Li
Energy efficiency is another area where 3D-printed homes outshine traditional builds. The design flexibility offered by 3D printing allows for custom thermal insulation solutions, optimising energy conservation. Homes built using this technology can be tailored to maximise natural light, reduce heating and cooling needs, and minimise overall energy consumption. A 2021 study from the University of California found that 3D-printed homes are up to 30% more energy-efficient than conventional houses.
be durable and resilient, capable of withstanding the natural disasters to which New Zealand is prone. For example, in response to the February 2023 floods in Auckland, QOROX’s concrete homes were highlighted as a more resilient alternative to timber homes, which suffered significant water damage. Concrete homes, by contrast, would require far less repair work after such events, further reducing their environmental and economic costs over time.
Faster builds = lower emissions
One of the most significant advantages of 3D printing in construction is the speed of the building process. A traditional home build can take months (or even longer), with prolonged energy use and material waste on-site. In contrast, 3D printing dramatically shortens construction times. QOROX claims that their 3D printing technology can reduce the build time of a standard 200 square metre house by at
least seven weeks. Faster builds mean less energy consumed during construction, fewer emissions from machinery, and reduced demand for onsite labour.
In addition to speed, 3D-printed homes generate up to 70% less construction waste, according to QOROX. The precision of the printing process ensures that only the exact amount of material required is used, resulting in minimal leftover material and debris.
So what’s next?
As New Zealand continues to grapple with the dual challenges of a housing crisis and the need to reduce carbon emissions, 3D-printed concrete homes offer a promising solution. By cutting carbon emissions, reducing waste, and increasing energy efficiency, the innovative technology could help turn the construction sector into a key player in New Zealand’s journey toward a zero-carbon future.
WorkSafe calls for the manufacturing sector to address safety concerns
WorkSafe is pleading with manufacturers to raise safety requirements, emphasising that far too any employees are losing fingers in industrial machinery mishaps.
Since the middle of March this year, manufacturing enterprises in New Zealand have been subject to fines and damages of over half a million dollars. WorkSafe identified three instances in the manufacturing industry where employers disregarded fundamental machine safety regulations, leading to finger amputations.
“All three cases are from the manufacturing sector, which has a persistent problem with machine safeguarding and is one of the country’s high-risk industries,” the WorkSafe principal inspector, Mark Donaghue, said in a statement.
Following an accident in January 2022 that resulted in the amputation of two fingers and the degloving of a third, Thompson Engineering, located in Timaru, was fined $247,500 and required to pay compensation of $35,00. A punch and shear machine that was a stand-in for primary equipment when it broke down was the cause of the accident.
In another instance, an Anglo Engineering worker in Auckland suffered a punch
and shaping press accident in March of 2022 that resulted in the partial amputation of three fingers. The business was fined $200,000 and mandated to make $35,337 in reparations payments.
Furthermore, Flexicon Plastics in Auckland was fined $74,392 and required to reimburse $33,000 in damages following an August 2022 incident in which one of the employees severed two fingers and degloved a third. WorkSafe claims that when the employee was cleaning the machine, the interlock on the equipment malfunctioned, and the power switch was unintentionally turned on.
Donaghue voiced his shock at how frequently workers are suffering catastrophic injuries, claiming that there is a way to avoid these workplace accidents.
Since the middle of March this year, manufacturing enterprises in New Zealand have been subject to fines and damages of over half a million dollars. WorkSafe identified three instances in the manufacturing industry where employers disregarded fundamental machine safety regulations, leading to finger amputations.
He says “These sorts of incidents are avoidable. Workers should not be suffering harm like this in 2024, and businesses have no excuse. WorkSafe is notified of machine guarding incidents from across the
country every week and is regularly prohibiting dangeorus machinery as part of its proactive and targeted assessments. WorkSafe has a role to influence businesses to make sure they keep people healthy and safe –that’s why we’re speaking out on this issue.
“If you are unsure whether your safeguarding is up to scratch, engage a qualified expert as soon as possible.”
The Machinery Act, which was put into effect in New Zealand in 1950, protected the effectiveness of machinery in workplaces. However, data indicates that, even after over 70 years, workplaces are still not complying, which leads to several worker injuries from potentially dangerous machinery.
Time to get social
It might seem odd to suggest that social media is essential for the hard-hatted world of trades and contracting. Yet, the reality is that these platforms have become powerful tools for building businesses, connecting with clients, and showcasing expertise.
Social media isn’t just about cat videos and endless scrolling. It’s a platform for connecting with people, building trust, and ultimately growing your business. Gone are the days when word-ofmouth was the primary way to find a reliable tradesperson. Today, potential customers are turning to the Internet to research and find service providers. Social media offers a unique opportunity to tap into the digital world, allowing you to connect directly with your target audience.
By sharing your work on platforms like Instagram and Facebook, you’re not just showing off (though, let’s be honest, who doesn’t love a good before-and-after?). You’re demonstrating your skills, attention to detail, and commitment to customer satisfaction. People want to see the real you and your team. They want to know you’re passionate about your craft.
Instead of relying on traditional advertising, you can use platforms like Facebook and Instagram to showcase your work, share helpful plumbing tips, and interact with potential clients. By sharing before-and-after photos of your projects, you’re demonstrating your skills and building trust. A well-placed
video demonstrating how to unclog a drain can position you as a knowledgeable expert, attracting people who need your services.
While it might seem overwhelming, you don’t need to be a social media guru to reap the benefits.
Explore different social media platforms. Start by choosing one or two that align with your target audience. There are several different social media platforms available, each with its own strengths and weaknesses. If you’re targeting homeowners, Instagram might be a good choice for visually appealing content. For connecting with other businesses, LinkedIn could be more effective.
Consistency is key. Regular posting keeps your business top of mind. It doesn’t have to be daily; even a couple of posts a week can make a difference. Mix it up with photos, videos, and informative content.
Focus on creating high-quality content. This could include photos and videos of your work, tips and advice, and behind-the-scenes glimpses into your business. People are more likely to engage with authentic content that they find interesting and helpful.
By Jamie Quinn
Consistency is key. Regular posting keeps your business top of mind. It doesn’t have to be daily; even a couple of posts a week can make a difference. Mix it up with photos, videos, and informative content.
Engage with your followers. Respond to comments and messages, and participate in conversations. This will help you build relationships with your followers and make them feel valued.
Leverage paid advertising. Social media platforms offer a variety of paid advertising options that can help you reach a wider audience and promote your business. This
can be a great way to target specific demographics or interests.
So, give it a go. You might be surprised how much fun it can be and how many jobs it brings your way. After all, in a world where everyone is trying to stand out, a strong social media presence might just be your secret weapon.
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Jackson’s
The rise of AI in the construction industry
The construction sector is facing significant challenges and disruptions, including a shortage of labour, skyrocketing construction costs, and weather-related incidents impacting infrastructure projects and buildings.
A new report by Autodesk and Deloitte, The State of Digital Adoption in the Construction Industry 2024, has found the construction industry across Asia-Pacific is facing similar challenges, and is exploring AI and other technologies to help solve these problems.
“What we’re seeing in New Zealand is similar to construction challenges that are being faced in Australia and across Asia-Pacific,” says Sumit Oberoi, Senior Manager, Construction Strategy and Partnerships, Asia-Pacific at Autodesk.
“Construction is a much needed and growing industry in New Zealand, but it has seen some challenges
What we’re seeing in New Zealand is similar to construction challenges that are being faced in Australia and across Asia-Pacific.
Other key findings from the report
• Across APAC, 30% of construction companies are trialing or currently use AI in their operations, with a further 38% planning to use the technology in the future
• Nealy 80% percent of businesses believed they received strong business returns or a positive return on investment from implementing AI and other technologies including data analytics, mobile apps, robotics, prefab and modular construction, and construction management software
• The critical role of technology in supporting business growth is increasingly being recognised. There was an increase in both businesses seeing new
technology as assisting with new project work (up from 38 percent to 45%) and technology in improving internal processes (up from 37% to 43%)
• Foundational technologies are the most commonly used, with data analytics (47%), construction management software (43%) and mobile apps (40%) providing the backbone of construction operations
• Generative AI is expected to become as pervasive in the construction and engineering industry as these foundational technologies, with 94 percent of businesses now having plans to integrate AI and machine learning into their businesses.
– particularly over the past few years. The sector has continued to be impacted by supply chain disruptions, rising construction costs and labour shortages.
“This has been followed by a double-dip recession, with rapid interest rate rises to curb inflation and the damage from extreme weather damaging roads and impacting many of New Zealand’s fruit and vegetable-growing regions,” Oberoi says.
“With the challenges facing the construction industry, as well as increased productivity required to address the issues the industry and economy is facing and to deliver the infrastructure pipeline, digital transformation is understandably one of the key emerging trends we’re seeing in New Zealand’s construction sector.”
The report is the second edition of the annual survey, with insights from 933 construction firms across six markets including Australia, Singapore, Japan, India, Malaysia and Hong Kong.
The report finds that 30% of Australian companies
surveyed are currently trialing or using artificial intelligence software to increase efficiencies and help solve major industry issues, including increased labour shortages, higher material costs, and global supply chain disruptions.
Additionally, 61% of Australian construction companies surveyed say AI will help them to reduce costs amidst more construction companies entering external administration than any other industry in the financial year to date.
“Disruptive new technologies combined with a challenging business outlook means that construction and engineering leaders in Australia and across Asia-Pacific are having to seriously rethink their tools, workforce skill needs
and how they interact with clients and contractors,”
Oberoi says.
“Generative AI has exploded onto the agenda for senior leaders with the rapid adoption of tools like ChatGPT, Midjourney and Github Copilot. No industry is immune from the transformative potential of this technology.
“Generative AI means that a new project proposal doesn’t need to start from scratch, instead leveraging material and pricing based on projects with similar specifications completed by the company.”
A further 33% of Australian construction companies plan to use AI in future, making it the
most common technology they are looking to integrate into their operations.
“If all companies with plans to adopt AI do so, AI will have a similar level of prevalence in the construction industry as data analytics or mobile apps,” reckons David Rumbens, Partner at Deloitte Access Economics.
Integrating technologies like these into business operations will be no small feat.
New Zealand’s building and construction sector is a significant contributor to the economy, contributing 6.7% of real GDP to March 2022 and was the third largest employer in the year to June 2022. Building consent numbers reached record-
level highs and the workforce pipeline has continued to grow.
“Priority areas for construction businesses to improve digital adoption include starting small by piloting projects, selecting a digital champion, tracking a range of success measures, building a digital ecosystem, and asking whether your business is AI ready,” Oberoi says.
“Put simply, construction companies need to get their ducks in a row now so they can implement AI in future years. The first step to successfully implementing AI is data standardisation and having an operational common data environment for teams.”
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Regional infrastructure fund aims to increase resilience
Supporting regional productivity, prosperity and resilience is at the heart of the Regional Infrastructure Fund, Regional Development Minister Shane Jones says.
“The coalition Government is dedicated to fostering a stronger, more productive economy, and this fund will play a crucial role in supporting the growth of our regional economies,” he states.
“Developing infrastructure for growth and resilience is one of the Government’s five key pillars for economic recovery. This fund, totalling $1.2 billion over three years, will invest in both new and existing infrastructure throughout regional New Zealand, with a focus on resilience and enabling infrastructure.”
Among the initial projects to receive funding will be flood protection and resilience initiatives nationwide.
“We are allocating an initial $200 million for flood resilience infrastructure. Of this, up to $101.1 million is already committed, along with co-investment from recipients, for 42 flood resilience projects that are poised to begin. The Government is currently evaluating the nature and scale of support for each initiative.
“These projects have been identified by local authorities in the Before the Deluge 2.0 report and align with the Regional Infrastructure Fund’s criteria.
“They include upgrades to stopbanks and floodwalls
on the Whakatāne-Tauranga rivers scheme in the Bay of Plenty, enhancements to the flood capacity of the lower Wairau River in Marlborough, and improvements to stopbanks on the Wairoa River between Dargaville and Te Kōpuru in Northland.
“Recent extreme weather events, such as Cyclones Hale and Gabrielle last year, underscored the urgent need for this infrastructure. Stopbanks often serve as the sole barrier between severe flooding and economic devastation for a region.
“While we view local councils as primarily responsible for flood protection, this fund will provide essential onetime support to fill critical gaps nationwide.”
Modern, purpose-built infrastructure is essential for the prosperity of New Zealanders. It boosts business productivity and fosters resilient communities.
Increased investment in regional infrastructure through the Regional Infrastructure Fund will also create jobs, enhance access to new markets for regional businesses, promote innovation and the development of new technologies, and support the Māori economy.
About the Regional Infrastructure Fund
• The Regional Infrastructure Fund will have two project categories for funding allocation:
1. Resilience infrastructure: projects that enhance a region’s ability to withstand and adapt to stresses and shocks, such as flood protection works and energy security.
Recent extreme weather events, such as Cyclones Hale and Gabrielle last year, underscored the urgent need for this infrastructure.
2. Enabling infrastructure: projects that support broader economic outcomes, such as increasing productivity in regional economies.
• Some funds will remain unallocated to enable the Government to respond to emerging priorities over the life of the fund
• The RIF will primarily support projects with funding requests ranging from $1 million to $50 million, while remaining flexible to consider larger projects that align with regional and national priorities
• The RIF will prioritise projects that are not eligible for funding from other government agencies, filling critical gaps in regional infrastructure development
• The RIF will create Crown and regional assets through a mix of loan, equity and grant investments
• The RIF will be delivered and administered by Kānoa – Regional Economic Development and Investment Unit.
15 April - 30 September, with delivery by 31 October 2024
‘Reasonable grounds’ tests redefined
By Ben O’Connell
All building work nationwide must comply with the Building Code, even if it doesn’t require a building consent.
Building Consent Authorities (BCAs) must grant a building consent if satisfied on reasonable grounds that Code provisions will be met if work is done per the plans accompanying the consent application. But what does ‘satisfied on reasonable grounds’ actually mean?
Per the government, “there has historically been no set definition of what ‘satisfied on reasonable grounds’ means, leading to different outcomes across the country.” In 2022, the Commerce Commission published a market study into residential building supplies, which recommended clear guidance on applying the ‘reasonable grounds’ test for granting building consents. Now, the Ministry of Business, Innovation and Employment
(MBIE) has developed guidance to provide consistency for BCAs when applying the ‘reasonable grounds’ test. Designers, builders, homeowners, and consent authorities alike benefit from this guidance.
Reasonable grounds tests exist because every building project is unique. BCAs assess via judgment calls whether facts, circumstances, and evidence are sufficient enough; for the BCA to be satisfied on reasonable grounds.
This allows for variation in the type of evidence depending on the circumstances. For example, less evidence and detail in the plans and specifications for a relatively simple project designed to comply with Acceptable Solutions versus more evidence and more details for a complex project that includes alternative solutions.
The BCA is ultimately responsible for building consent outcomes. Other parties play a key role in
contributing to whether a building consent authority can be satisfied on reasonable grounds.
Owners, designers, and builders have roles that collectively ensure that building projects comply with regulations and standards, uphold the safety and quality of the built environment, and maintain the integrity of the building consent process. This includes adhering to established guidelines, maintaining professional competency, and exercising sound judgment throughout the process.
To be satisfied on reasonable grounds, BCAs must make a qualitative assessment that requires an informed judgment call. An objective test is capable of measurement, assessment and comparison.
This can be an Acceptable Solution, Verification Method or standard, but it is important to look at the wording in the Building Code and the
principles of building science. Judgement calls consider risk, complexity, previous knowledge of similar situations, skills and experience of persons providing the evidence and the quality of that evidence.
The guidance aims to provide clearer obligations and expectations, reduce processing delays, and streamline the experience for all involved in the building consent system.
Key principles - The government outlines four key principles that BCAs could consider when deciding if they are satisfied on reasonable grounds. Decisions should consider the applicant’s competency, the complexity of the project, past compliance, and available evidence (such as design drawings, specifications, and certifications).
Evidence - The reference to ‘evidence’ as a key principle relates to all information, drawings, specifications, and other documents according to
which a building is proposed to be constructed, altered, demolished, or removed.
Risk - A risk-based approach fosters a reasoned and proactive approach to identifying specific risks and implementing appropriate practices or processes to respond to those risks. A risk-based approach focuses or places a greater emphasis on activities with a higher risk of non-compliance and/ or a greater risk to the built environment in the event of non-compliance, which is the most efficient and effective means of managing risk.
Competencies and experience - A mix of competency and experience generally underpins good decision-making processes and outcomes.
The guidance aims to provide clearer obligations and expectations, reduce processing delays, and streamline the experience for all involved in the building consent system.
Regulation 10 of the Building (Accreditation of Building Consent Authorities) Regulations 2006 is intended to ensure all prospective and current building control staff performing building control functions have had their competency established.
The BCA only needs to be satisfied on reasonable grounds, not beyond all reasonable doubt. However, any good decision-making processes should be underpinned by sound and traceable reasons for
decisions and include a rational outcome.
Decisions made by BCAs require informed judgement. This is commonly associated with currency of competence or practice and relevant experience – it’s difficult to make good and consistent decisions without these ingredients.
Processes - BCAs should follow their accredited policies, procedures, processes and systems. This will ensure consistency within BCAs.
Under the BCA accreditation scheme, all BCAs are required to have policies, procedures, and systems in place to perform their building control functions. These need to cover the building consent process, from vetting an application for building consent to the issue of a code compliance certificate.
The processes outline how the BCA carries out its various functions, including making decisions based on whether it considers that it is satisfied on reasonable grounds that building work complies with the requirements of the Building Act, Building Code and any other building regulations.
Visit www.building.govt.nz/ building-officials/guides-forbuilding-officials/satisfied-onreasonable-grounds for more.
Government to implement self-certification for trusted builders
The government is set to introduce a new self-certification scheme for building professionals with indemnity insurance.
This initiative aims to streamline the building consent process by allowing qualified tradespeople to certify their own work, thereby reducing reliance on council inspections and minimising costs and delays for consumers.
Building and Construction
Minister Chris Penk emphasised the need for these reforms, stating, “The building consent system currently is one size fits all. There are really good trade professionals who aren’t trusted to get on and do the work and certify their own work.”
The proposed changes will enable reputable builders, including major companies like GJ Gardner and Jennian Homes, to construct simple, repeatable homes without requiring building consents. The new policy will also allow plumbers, builders,
and drainlayers to certify their work, a capability that is currently available only to electricians and gasfitters.
Penk noted that these reforms could significantly speed up and lower the costs associated with the consenting process for new builds. Homeowners undertaking renovations may also benefit, as tasks like relining a house or enhancing energy efficiency could be
certified by builders without needing inspections from Local Building Consent Authorities.
He asserted that the new regime is designed to enhance consumer protection by placing accountability in the hands of experienced professionals who carry substantial insurance through organisations like Master Builders and Master Plumbers.
The proposed changes will enable reputable builders, including major companies like GJ Gardner and Jennian Homes, to construct simple, repeatable homes without requiring building consents. The new policy will also allow plumbers, builders, and drainlayers to certify their work, a capability that is currently available only to electricians and gasfitters.
By Ben Kennedy
The detailed policy is not available yet, but it is expected to be voluntary for eligible professionals such as builders and plumbers.
Greg Wallace, chief executive of Master Plumbers, welcomed the announcement, noting that the National Party had advocated for self-certification since the last election. He pointed out that lengthy waits for inspections have plagued the industry, with some inspectors needing to travel significant distances for brief assessments.
“This is putting the risk on the tradespeople, and that’s where it should lie,” Wallace stated.
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Building climate-resilient landscapes during a cost-of-living crisis
The government is stuck between the rock of expensive climate change policies and the hard place of the cost-ofliving crisis.
This is why the carbon market is so important for financing climate change solutions at scale, says Ekos CEO Sean Weaver.
Preparing for a future with a higher incidence of extropical cyclones like Cyclone Gabrielle, requires building climate-resilient landscapes in places like the Gisborne District, Hawke’s Bay, inland Wanganui, and Northland, Sean says.
This will require replacing clear-cut forestry and pastoral farming on hundreds of thousands of hectares of erosion lands with a sustainable and economically viable alternative. According to Sean, the most suitable alternative is continuous cover forestry.
Continuous cover forestry avoids clear-cutting, focusing instead on selective harvesting of individual trees, groups, or patches in a sustainable cycle of growth and replacement. Currently, this method is employed in about 30 percent of forestry practices across Europe.
Steep terrains unsuitable for individual tree harvesting can be replanted with native species and managed for conservation.
Preparing for a future with a higher incidence of ex-tropical cyclones like Cyclone Gabrielle, requires building climate-resilient landscapes in places like the Gisborne District, Hawke’s Bay, inland Wanganui, and Northland.
“We now have a carbon market that can support sustainable forestry, provided the government stops using the NZETS as a political tool and shows other nations how to effectively manage a carbon market,” Sean says.
Many conservation groups are advocating for the reforestation of land exclusively with native trees, leveraging the carbon market for funding. However, Ekos, a company specialising in native forest conservation, has encountered a challenging reality: the economic viability of native reforestation funded by carbon credits often falls short.
“We faced some hard financial truths due to the slow growth rates of native forests. We had to choose between giving up or innovating to find a
feasible alternative. For us, that means embracing the concept of ‘and’—planting both native and exotic forests while managing the latter to transition to native species over several decades.”
The idea of transition forests has sparked controversy among conservationists who oppose the inclusion of exotic species in climate strategies. However, Sean emphasises that the practice of harvesting and replacing patches of exotic forests with native ones is not contentious.
“Conservation groups often misrepresent our transition forests concept, claiming it simply involves planting pine forests and neglecting them. This is misleading. We advocate for a managed transition using continuous cover forestry
methods that have been effective both locally and abroad.
“Many examples exist of native forests thriving alongside exotic ones throughout the country. Our approach includes planting native forests in patches adjacent to exotic ones, which can vary in species—from eucalypts to oaks to redwoods—depending on the site and management plan,” he explains.
“There are those who demand unattainable perfection in an imperfect world. If a Rolls Royce is out of your budget, it doesn’t mean you can’t find a more affordable option that serves a similar purpose.“We are currently facing a costof-living crisis, and everyday families aren’t asking for extravagant climate solutions; they want practical, affordable ones,” he adds.
“We need to restore vast areas of eroded land in preparation for climate change, which will require billions of dollars. By taking a sensible, balanced approach, we can achieve this without burdening taxpayers, rather than asking essential workers like teachers and nurses to sacrifice their pay for an unattainable ideal.”
The government has also warned against unrestricted reforestation, suggesting that it could flood the carbon credit market, leading to a price collapse and diminishing incentives for reducing carbon emissions.
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E: contractors.hb@higgins.co.nz
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P: 06 858 9151
E: admin.wp@higgins.co.nz
Hawkes Bay
Waipukurau
Advancing sustainable land use practices
The push for more sustainable forestry and farming practices on our steep, erosionprone land is a key environmental priority in the Tairāwhiti region.
Recent severe weather events have underscored the urgent need to improve land use practices to safeguard our rivers and coastal ecosystems.
Nedine Thatcher Swann, chief executive of the Gisborne District Council, emphasises that one of the Council’s objectives is to identify the most severely eroded areas in the region and transition them
to permanent vegetation cover. “We have considerable work ahead before we reach that goal,” she notes.
The community is acutely aware of the risks posed to land and waterways during heavy rain. Over the past decade, forestry activities on steep, erosionprone land, combined with severe weather, have resulted in excessive sediment and debris entering our waterways. This has severely impacted rivers, coastal ecosystems, infrastructure, properties, and local livelihoods.
Following Cyclone Bola in 1988, government subsidies promoted pine planting on eroding land for erosion control. However, recent
harvesting has left the underlying geology exposed to significant erosion risks.
To manage land use sustainably, the Council plans to review the Tairāwhiti Resource Management Plan (TRMP). Nedine highlights the need for a multifaceted approach to enhance our waterways.
The aftermath of Cyclones Hale and Gabrielle in 2023 has further highlighted the limitations of the National Environmental Standard for Commercial Forestry (NES-CF)
in addressing these challenges in Tairāwhiti.
Nedine asserts that even the strictest application of NESCF rules is inadequate for the soil types in Tairāwhiti. Additionally, court prosecutions and hefty fines have failed to curb poor land use practices in the district. “The costs of clean-up have unfairly fallen on our ratepayers,” she adds. Most environmental damage costs associated with forestry are externalities—expenses that the forestry companies do not bear, but instead, are shouldered by downstream property owners and the broader community.
“A clear example of this is the removal of forestry debris from
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our beaches and rivers, which the community must bear,” she explains.
Since July 2018, the Council has spent $1.2 million in ratepayer funds on clearing woody debris from Ūawa/Tolaga Bay beach and Gisborne city beaches. Following Cyclone Gabrielle, more than $16 million of central government funding has been allocated for removing large woody debris from rivers and coastal areas in Tairāwhiti.
To manage land use sustainably, the Council plans to review the Tairāwhiti Resource Management Plan (TRMP). Nedine highlights the need for a multifaceted approach to enhance our waterways.
“Work on plan change options began in early 2023. We needed to connect our forestry practices with waterway
management to improve land and river stewardship.”
High-resolution modelling from Manaaki Whenua/Landcare Research has facilitated this connection, providing detailed spatial data. Council staff will verify the model and create a detailed mapping layer known as Land Overlay 3B (LO3B), which will identify the most eroded areas that require permanent vegetative cover.
Transitioning these vulnerable areas to permanent vegetation aims to reduce the risk of land failure and debris flows, protecting our waterways and minimizing downstream impacts on residents. The Council’s strategy is to establish long-term vegetation on slopes unsuitable for clear-fell harvesting while supporting sustainable plantation forestry on appropriate lands.
These proposed changes aim to reduce soil erosion and improve water quality, thereby enhancing biodiversity in terrestrial, aquatic, and marine environments. The Council is initially focusing its efforts on the Ūawa catchment, fostering collaboration among industry stakeholders, mana whenua, community members, business
owners, and groups like Mana Taiao
Currently, the Council is in the early stages of consultation with the forestry sector, stakeholders, and the wider community. Feedback will be considered before any rule changes are finalised.
Tairāwhiti.
Quake-proofing your home
By Ben O’Connell
Apartment buildings in Wellington were evacuated in early October due to structural damage concerns following a magnitude 5.7 earthquake.
One 16-storey building had been swaying because of the quake, one neighbour told RNZ. The apartments were marketed as setting “a new standard in apartment seismic safety as Wellington’s first base-isolated apartment development” when built in March 2023. As sentiment grows that Wellingtonians should prepare for a large tremor, it serves as a reminder for all New Zealanders to establish emergency plans and quake-proof their homes.
New Zealanders live in one of the most seismically active countries in the world, and every year, our land experiences 150 earthquakes that are strong enough to be felt by people. Though most earthquakes have a minute impact on us, the occasional quake can cause damage to infrastructure and, in the most significant of cases, injuries and deaths. We know that another damaging quake will happen, but we don’t exactly know when or where. Preparing your home for a quake will help protect you and your loved ones.
Protect your home
One key way to protect your home and family is to identify potential hazards in your living space. Heavy furniture and appliances, like bookcases and refrigerators,
should be secured to walls to prevent them from tipping over during an earthquake. Anchoring tall furniture with straps or brackets can help reduce the risk of injury, while placing electronics on non-slip surfaces and securing water heaters can also minimise potential hazards.
Strengthening the structure of your home is another important step. Older homes may require retrofitting to reinforce foundations, walls, and chimneys. Brick chimneys, in particular, are prone to collapse, so it’s vital to ensure they are stabilised. Securing roof tiles and shingles is also important, as loose debris can cause significant damage during shaking. In some cases, consulting a structural engineer or contractor to assess your home’s earthquake resilience may be required.
Utility disruptions are a common consequence of earthquakes, so preparing for these is crucial. Install flexible gas connectors to reduce the risk of leaks, and know how to shut off your gas valve in case of damage. Water pipes should be reinforced to prevent flooding, and electrical wiring should be inspected to reduce the risk of fires. Familiarising yourself with your home’s circuit breaker
New Zealanders live in one of the most seismically active countries in the world, and every year, our land experiences 150 earthquakes that are strong enough to be felt by people.
and learning how to shut off utilities in an emergency can help prevent further damage post-quake.
Securing hazardous items inside your home is another essential safety measure. Heavy objects like mirrors, artwork, and picture frames should be mounted with earthquake hooks to prevent
them from falling. Cabinet latches can keep glassware and fragile items secure, while flammable liquids should be stored in well-ventilated areas, preferably in locked cabinets.
These precautions can reduce the risk of injury and fire during and after an earthquake.
Drop, cover, hold
It’s also important to prepare yourself and your family for the possibility of an earthquake. Creating a family emergency plan with a designated meeting place and communication strategy can ensure everyone knows what to do. Stocking up on essentials like food, water, medications, and first aid supplies for at least seven days is vital, and conducting regular earthquake drills will help everyone practice the “Drop, Cover, and Hold” technique. Identifying safe spaces in each room, like under sturdy furniture, will keep family members safe during shaking.
After an earthquake, checking for hazards is essential. Gas leaks, water damage, and electrical issues should be inspected immediately, and utilities should be turned off if damage is suspected. If your home appears structurally unsafe, evacuate and seek shelter. Having a list of emergency contacts and knowing local evacuation routes will help you respond quickly.
Retrofitting is especially important for older homes, which may not have been built to modern seismic standards. Retrofitting could involve reinforcing walls and chimneys or securing the house’s foundation with bolts or bracing. Consulting
with professionals can help determine what upgrades are needed to make your home safer.
A community approach Financial preparedness is another key aspect of earthquake readiness.
Reviewing your insurance policy to ensure it covers earthquake damage is critical, and creating a financial plan with a buffer for postearthquake expenses can ease the recovery process.
Safeguarding important documents in fireproof storage can help protect your assets and ensure quick access to essential paperwork.
Finally, community support plays a large role in disaster preparedness. Getting to know your neighbours and creating a neighbourhood emergency plan can provide additional safety and resources in the aftermath of a quake. Local civil defence groups and disaster response teams offer valuable information and support, and participating in preparedness events or training can help you stay informed and ready.
Taking these precautions ensures that New Zealanders are better equipped to protect their homes and families when the next earthquake occurs.
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Nestled at 209 Canning Road in Hastings, our state-of-theart facility represents the new standard of surgical care, merging advanced technology with compassionate patientcentric services.
Who we are
At Kaweka Hospital, we believe in a holistic approach to healthcare. Our team of highly skilled specialists and dedicated staff works tirelessly to provide you with the highest-quality medical care. We are proud of our robust governance and the exceptional credentials of our medical professionals.
Every member of our team is committed to ensuring that your experience with us is seamless, comfortable, and focused on your health.
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Our facility is equipped with cutting-edge technology to handle a wide range of medical specialties and surgical procedures. From general surgery to specialised treatments, we offer comprehensive medical services that cater to your specific needs. Our specialities include gynecology, urology, pediatric surgery and more.
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We also provide extensive diagnostic and health assessment services.
Patient Information
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Join our community Kaweka Hospital is not just a place for treatment; it’s a community. We offer GP
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Your health is precious, and we are here to help protect it. For more information or to book an appointment, visit our website or contact our friendly staff.
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209 Canning Road
Hastings 4120 06 241 4100
www.kawekahospital.nz
POSITIVE PEOPLE CREATE POSITIVE RESULTS
Professional, personable and proactive is what Andrew strives for. With more than eight years in the real estate industry, he has been recognized for his expertise and exceptional results from the very beginning. A strong work ethic has seen him receive multiple high-achieving awards; most recently #2 Sales Agent for Hawkes Bay (2023), #5 in 2022, #4 2021, #1 Sales Agent and Kel Tremain Memorial Cup recipient (2020), as well as Rookie of the Year in (2017).
When marketing and selling your property, you can expect nothing short of exceptional service and results from Andrew. Andrew is committed to providing clear and honest communication every step of your real estate journey. His Bachelor of Business in Marketing qualification plus a family legacy in property development, Andrew brings a wealth of knowledge and experience beyond real estate; renovations, subdivisions, and new build projects.
“There is an immense level of personal satisfaction from achieving outstanding results for my Vendors and Buyers. There is nothing more rewarding than helping good people find great homes.”
Giving back to the community is a cornerstone of Andrew’s values. For the past seven years, Andrew has been the major sponsor of the Clive Rugby Club, as well as supporting Te Mata Primary School, Hastings East Ross Shield, and Hawke’s Bay Basketball. On the weekends, you will find Andrew on the rugby field, coaching the Hereworth Under 12s Rugby Team and spending his spare time with his children Victor, age 12, and Lily age 9.
