Elevate Hawke's Nelson/Marlborough/West Coast Issue #1

NELSON / MARLBOROUGH / WEST COAST EDITION: 1 2024 | REF CODE #V24M1

The global cost of corrosion was an estimated $2.5 trillion USD in

This issue of Elevate features a frank discussion with the CEO of New Zealand Certified Builders, Malcolm Fleming, who gives valuable insight about the various issues the industry faces today, and in the future.

We tell you all you need to know about the new product information requirements and ways to reduce the risk in building projects.

(03) 961 5088 jarred@markat.co.nz

(03) 961 5075 amber@markat.co.nz

Key changes to the NZS3910:2023 contract

After 10 years of the construction industry using the NZS3910:2013 terms, the NZS3910:2023 was released in November 2023.

However, the sector is not yet familiar with the changes and many parties in practice are still opting for the old, accustomed contract base.

Standards New Zealand said the new terms “lessen the need to add special conditions of contract, thereby improving consistency, familiarity and efficiency in construction contracting,” but that is what they said 10 years ago with the 2013 terms when it was “revamped” from the 2003 terms saying it “resulted in clearer wording and a reduced need for extensive special conditions”.

Extensive special conditions continued to be included nonetheless. In any case, here are the major changes this time.

1.

Contract

administrator and independent certifier

The role of the Engineer to the Contract (which has always been challenging) has been formally split into two distinct roles of “Contract Administrator” (acting as the Principal’s agent in a project management kind of role), and the “Independent

Certifier,” who is to make determinations and issue certificates independently.

2. Variations

Amendments have been made to the variations clause to incorporate contract price adjustment mechanisms and to highlight the split roles of the Contract Administrator and Independent Certifier. The variations clause which will inevitably cause many disputes will therefore require careful review by all.

3. Cost fluctuation

The presumption that cost fluctuations will not apply to the contract price has been reversed, and the default terms now stipulate that a cost fluctuation adjustment shall be made unless the parties specifically agree otherwise in the Specific Conditions.

This may reflect the changes in the market after Covid-19 where parties were frequently agreeing to cost fluctuations where contractors held bargaining power, but in the current market where many “fixed lump sum” prices are fixed without cost fluctuations, this will create a further amendment to the “current norm”.

4. Target price contract option

A new “target price” contract price option has been

A new clause has been added to ensure the Contractor takes all reasonably practicable steps to prevent any act or omission that could harm the environment, or breach any relevant law or consent.

added in addition to the previous types of contracts which included lump sum, measure and value, and cost reimbursement.

The new “target price” will allow parties to share the benefits of savings or the burden of exceeding the “budget” when the actual price is below or above the target price based on preagreed percentages. It will be interesting to see if there is an appetite for this in the market.

5. Bonds

The form of a Principal’s bond and Contractor’s performance bond has been amended to remove the reference to joint and several liability for the bond amount.

It will again be interesting to see whether parties will commonly opt for bonds in lieu of retentions, given the recent changes to the retentions regime in October 2023 that generally made retentions management and obligations very onerous in practice.

6. Extensions of time

A two-stage process for notification of an extension of time claim has been introduced now which could catch people out if they are not accustomed to this new change, requiring the Contractor to provide initial notice of the circumstances relied on as grounds for the extension and a subsequent notice detailing the period of the extension sought.

This may be onerous for smaller Contractors who may simply send two notices at once or may opt to amend this back to the old terms, but we will have to see.

7. Contractor’s

liability

The scope of a Contractor’s indemnity in favour of the Principal has been narrowed, removing the previous “no fault” indemnity. Furthermore, there is now a cap on the Contractor’s liability, with specific exclusions, which may reflect the changes and difficulties in the insurance market.

8. Management plans and reporting:

The requirement for the Contractor to prepare various plans (such as safety plan, quality plan and traffic management plan) has been streamlined, with only the site-specific safety plan now being mandatory.

Additionally, a new clause requires the Contractor to regularly report on matters recorded in the Specific Conditions, something which again the Contractor can be caught out by if they do not pay attention to the changes.

9. Environmental protection

A new clause has been added to ensure the Contractor takes all reasonably practicable steps to prevent any act or omission that could harm the

environment, or breach any relevant law or consent.

This appears to be in form with the general “trend” of ESG (Environmental, Social and Governance) regulations and changes in the market.

10. Final account

The concept of a “Final Account” and “Interim Final Account” has now been introduced, which the Contractor must prepare and serve on the Independent Certifier (being one of the two separated roles of the Engineer) to set out the Contract Price, along with all variation claims and other adjustments.

11. Dispute resolution

Significant changes have been made to the dispute resolution provisions, requiring senior

representatives of the parties to attempt to resolve disputes in the first instance (which we have always recommended in any case), with options for mediation or arbitration if unsuccessful. These changes appear to reflect the need to urgently resolve matters, often through alternative dispute resolution processes for construction disputes, as cash is the bloodline of the industry.

Conclusion

Overall, the changes in the NZS3910:2023 contract aim to ensure that it is widely accepted, fit for purpose, limits the need for special conditions (or so they say), improves understanding of contracts, and that risk is allocated fairly.

Principals, Contractors, and Consultants will need to become familiar with the new version and will certainly need to amend their “standard special conditions” to accommodate the new template changes.

If you have any property, construction, or litigation queries, please feel free to contact Tina Hwang or Marcus Beveridge 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.

The majority of home buyers now take natural hazards into account

A recent report indicates that nine out of 10 homebuyers now consider natural hazard risk when deciding on a property.

According to a the EQC Toka Tū Ake NeilsenIQ report, 89 percent of people who have recently bought or are considering buying a property have natural hazard risks on their minds.

EQC Toka Tū Ake Chief Resilience and Research Officer, Jo Horrocks, says “We are highly exposed to natural hazard risks in New Zealand, including a range of geological hazards like earthquakes and volcanoes.

We encourage all home buyers to go into a purchase with their eyes open, so they can make a decision on a new home that is right for them.

It is positive that people are more aware about these risks and using that knowledge to inform their decisions. This includes getting engineering advice, as well as looking at the Natural Hazards Portal before buying a new home.

“We also face increasing exposure to severe weather events and the resulting hazards such as flooding and coastal inundation.

“It is not surprising that the devastation caused by the severe weather events

last year has made New Zealanders more aware of natural hazard risks.

“It is positive that people are more aware about these risks and using that knowledge to inform their decisions. This includes getting engineering advice, as well as looking at the Natural Hazards Portal before buying a new home,” Jo says.

The Natural Hazards Portal shows the locations of more than 360,000 claims EQC Toka Tū Ake has settled since 1997.

Users can zoom on the map, and it tells them where, when and roughly why there was natural hazard damage, so the buyer can make an informed decision when purchasing a property.

Horrocks also encourages home buyers to check local council files on the property that might help buyers understand any natural hazard risks associated with the property’s location, and to ensure any building or construction work has appropriate consents.

“In addition, investigate what features of a home might make it more at risk of damage from natural hazards, such as older chimneys, secure foundations, and structurally important retaining walls.

“Then, consider the potential cost of any construction or repair work needed and then talk with your lawyer about how this might affect your offer,” she says.

“Vendors can take action before listing a home to improve the strength and safety of features that might pose a concern for would-be buyers.”

Understanding insurance and what it covers is also important for home buyers, such as knowing the total amount it would cost to rebuild the house including demolition costs, debris removal, professional fees and council fees to set your sum insured.

And being aware that under legislation, EQCover for land is only intended to cover the land needed to support or access the house.

“We all have different appetites when it comes to level of risk – including risks posed by natural hazards,” Jo says.

“We encourage all home buyers to go into a purchase with their eyes open, so they can make a decision on a new home that is right for them.”

Email: info@decoratingmarlborough.com

Phone: 022-017-6691

www.decoratingmarlborough.co.nz

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The state of our built future

Q&A with NZCB CEO Malcolm Fleming

By Ben O’Connell

Uncertainty about forward workloads and a lack of government direction regarding the future of vocational education and apprentice training; these are the two biggest challenges chief executive of New Zealand Certified Builders, Malcolm Fleming, believes Kiwi tradespeople face today.

But with construction costs growing and regulations changing, his role oversees an extensive list of industry issues.

The construction industry is facing a significant skills shortage. How do NZCB think we can best attract and retain talent within the industry?

This is a cyclical issue that became particularly evident during the housing boom that followed COVID-19, a period that saw new building consent numbers rise above 40,000 on a 12-month average for the first time since the mid-1970s. The peak occurred in 2022 when new residential building consents hit 50,000. The 2024 market is very different from what it was even 12 months ago, with skills shortages no longer the issue it was, as demand for those skills has reduced.

That said, NZCB is very focused on both attracting people to consider a carpentry apprenticeship and supporting those apprentices who are employed by our members. We have two significant programmes of work: the NZCB Apprentice Network, which welcomes apprentices into the NZCB community and supports them across their four-year apprenticeship; and a series of Carpentry Role workshops that set out a career pathway for newly graduated apprentices, which builds on their core skills to assist them growing competency in roles such as

training, something that our Carpentry Role programme addresses.

What factors have caused construction costs to rise?

My view is that the current high cost of building is the most significant issue facing the construction industry. New Zealand’s isolation, our small market size, and the embedded risk aversion across Building Consent Authorities (BCAs), designers, and builders alike, all contribute to the high construction prices in our country.

• On the isolation front, disruptions to shipping

The most significant impact on the cost of building across the past year has been the implementation of H1 (increased energy efficiency standards since 1 May 2023) to the Building Code. This change has led to cost escalation in construction costs and accelerated the housing affordability issue.

Leading Hand, Foreperson, and Site Manager.

Coming into the NZCB role, I was struck by a lack of career mapping and ongoing occupational skills development for carpenters post their apprenticeship

lanes in the northern hemisphere (the RussiaUkraine war restricting shipping on the Black Sea, Houthis attacks on shipping on the Red Sea, and climate-induced droughts impacting the Panama Canal) have added

to the cost of bringing goods to New Zealand

• Our small market size does not make it attractive for international manufacturers of building products or systems to set up a distribution base here, particularly when they will have to compete head-tohead with well-established local players

• Our main issue is the risk aversion triangle, which sees none of the three main players in the building consent process (designers, builders, BCAs) wishing to take on risk, which translates to all parties staying with products and systems that are proven with good track records, and which are well supported locally.

As an association, NZCB is addressing affordability through its new range of Certified Plans that will be released in Q3 2024.

Designed by one of the country’s largest architectural practices, a small range of entry-level houses will utilise new building methodologies to reduce construction time and practice the maxim “less is more” by demonstrating that through smart design, New Zealanders can trim their floor plans significantly, which when cost per square metre is $5,000+, reducing the size of the homes we live in by 20 percent or more, translates to significant savings.

With Certified Plans being designed by one of the country’s largest New Zealand Institute of Architects practices, NZCB is bringing award-winning design to a much larger audience.

More broadly, the construction industry has been advocating for a range of changes to the building regulatory system, which MBIE has been receptive to across the last two years.

Some of those ideas include increasing the range of products and systems that can be specified in the New Zealand market, introducing efficiencies within the BCA, and inspecting regime. These ideas are not new, though they are now being accelerated by a new government wanting to see quick progress on solving the very real issue of high building costs.

What are the biggest impacts of regulatory changes you’ve seen so far?

The most significant impact on the cost of building across the past year has been the implementation of H1 (increased energy efficiency standards since 1 May 2023) to the Building Code. This change has led to cost escalation in construction costs and accelerated the housing affordability issue.

The Ministry of Business, Innovation, and Employment (MBIE) has signalled that H1 is the first step in creating regulations that will enable the construction sector to play its part to ensure that New Zealand meets its Paris Accord commitment to reduce the country’s carbon emission levels by 50 per cent (from 2005 levels) by 2030.

Given the pledge that New Zealand has made internationally, there is no pulling back from this direction of travel. We do however, need to offset the rising costs that are a consequence of increased specification requirements by making it easier to use proven products and systems from larger markets here in New Zealand.

As touched on already, there are positive signs that the regulator MBIE is fast-tracking some changes in this area of opening the New Zealand market to a broader range of building product and system providers.

Given the current economic climate, what is your outlook for the New Zealand building industry over the next few years?

We are at the bottom of the current economic cycle, with high interest rates, reduced consumer spending, and now a fiscal belt-tightening by the government, flowing through to a 20 percent drop in new home building consents down to levels last seen two to three years prior to the pandemic. We should expect that this level of demand will represent

Niamh

the new normal for the next two to three years.

What we are observing now is that designers and builders who have positioned themselves as operators in the new residential space only are suffering, while those who operate across a range of markets, in combination with having a good customer base, have maintained good forward workloads.

For builders specifically, NZCB members, by virtue of them being trade-qualified, have largely filled the void created by a fall in demand for new home construction by picking up alterations and additions (often with a client who can no longer make a new build work), light commercial, education work, and in recent times, flood and cyclone remediation work.

New Zealand still needs new housing, along with

vertical infrastructure that either needs to be newly constructed or maintained.

Neither driver can be put off for too long, so smart operators who can demonstrate excellence in what they do, have good systems and processes, and take the opportunity to leverage new and emerging technologies to build faster and more efficiently will do well both now, and when demand starts rising again.

What has been your most rewarding experience as chief executive of NZCB?

Good trade associations develop a strong sense of community amongst its members, something NZCB has in spades, which, for someone like me who practices the notion of active custodianship keenly, is an appealing characteristic.

What I am finding particularly rewarding with NZCB is the blending of that strong sense of community and our members’ pride in their carpentry craft, with a real hunger from the membership to see the NZCB’s industry and public profile be amplified and their enthusiastic support for the progressive new initiatives and programmes that we are currently bringing to market.

Is the government doing enough to protect and support the building and construction industry?

Yes and no. Yes, the new government is signalling a keenness to streamline the building consent system and make it easier for building products and systems that are used successfully and widely in overseas markets, to be specified here.

New Zealand needs a skilled construction workforce of scale to both construct the built environment we need and maintain the housing, commercial, industrial, and infrastructure we have. This lack of foresight is discouraging.

This will rely on the approval system being both robust (ensuring products can meet New Zealand’s climatic conditions and involving third-party accreditation requirements) and that applications are processed

in a cost-effective and timely manner (currently barriers to new entrants). This is all quite promising.

No, the new government’s cancellation of planned vertical infrastructure projects is creating havoc, as designers and builders alike, who as recently as three months ago had a project to either bid on or to start construction on, now have voids in their forward workload.

New Zealand needs a skilled construction workforce of scale to both construct the built environment we need and maintain the housing, commercial, industrial, and infrastructure we have. This lack of foresight is discouraging.

What steps is the NZCB taking to promote sustainable building practices among its members?

In looking at solving a significant issue such as sustainability, it is wise to identify what it is you can control in your ‘lane’. For NZCB, that ‘lane’ is how we look to minimise construction waste, which accounts for over half of the waste that makes it to New Zealand’s landfills. This is an area that NZCB will be applying some focus to. Also in our ‘lane’ is the revised range of Certified Plans, the brief for which includes strong sustainability building practices and product types. These designs will be an active demonstration of NZCB’s proactivity in the sustainability space.

Why should builders consider membership with NZCB?

With the membership prerequisite being a completed carpentry apprenticeship (NZ

Certificate in Carpentry Level 4 or equivalent), NZCB membership is a quality mark for homeowners wishing to engage a builder.

Consistent across the membership is that pride in their carpentry craft, which generates a strong sense of NZCB community, with a membership proposition that includes access to building contracts, a ten-year building warranty product, and a strong commitment to providing a substantive educational programme to NZCB members.

With 2,300 business members who work primarily in the residential market, NZCB has a clear mandate on who its membership base is and who we advocate on behalf of. That purity of focus is compelling for tradequalified residential builders. Visit: www.nzcb.nz for more.

Malcolm Fleming Chief executive of NZ Certified Builders

CLUB WAIMEA PRIDES ITSELF

ON ITS FRIENDLY, SOCIABLE AND COMMUNITY MINDED SPIRIT

CLUB WAIMEA is a friendly place for members to meet up with friends and family & guests. Affiliated Clubs NZ Members are also welcome to use our facilities.

With over 14 sporting sections, various entertainment each week, weddings, workplace training etc.

Gaming Room 18 Machines

Functions Hall with full Bar facilities

Heaps of Parking

Restaurant, Buffet and À la carte

Squash Courts

House Bar with Regular Entertainment

Caravan Park (with ablution block – full facilities)

All Year Round Outdoor

Bowling Green

Rooms for Functions, Great Catering

Various Sporting Sections (Pool, Darts, Fishing etc.)

TAB and ATM

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Kiwis want stronger buildings to resist earthquake risk

New research has revealed New Zealanders have higher expectations of their buildings in earthquake events than providing life safety alone.

“New Zealanders don’t just want to escape a major earthquake with their lives, but they want to be back living and working in those buildings soon after an earthquake,” explains Helen Ferner from the New Zealand Society for Earthquake Engineers (NZSEE).

NZSEE and the EQC Toka Tū Ake have published the results of the threeyear Resilient Buildings Project which captures the expectations we have of our buildings and provides a policy framework tool to support engineers, and designers to align with these expectations.

“Our approach to design of new building continues to evolve and needs always to reflect society’s desires and tolerance to the risk of damage, while also considering the costs of mitigation,” Helen says. She explains that unprecedented seismic activity in New Zealand has demonstrated the shortcomings in seismic performance in buildings, which resulted in the Christchurch CBD being cordoned off for two years

low, in most cases less than one percent of the construction cost, by using new innovations, but also by avoiding fragile designs and focusing on simpler, regular building designs.

The Resilient Buildings Research discovered that New Zealanders have particularly high expectations of hospitals, marae, aged care facilities and community centres.

From what New Zealanders have experienced in the past decade, more focus on preventing or minimising seismic damage to buildings makes good economic and social sense.

and thousands of buildings being demolished and rebuilt.

“Those events highlighted that as well as the direct property costs, there was also significant indirect costs from social distress and economic disruption,” she says.

“This framework will support people to create more resilient buildings without blowing the budget, while also meeting people’s expectations.”

EQC’s Chief Resilience and Research Officer, Dr Jo Horrocks, says one of the key objectives of EQC is to promote stronger homes on better land.

“From what New Zealanders have experienced in the past decade, more focus on preventing or minimising seismic damage to buildings makes good economic and social sense,” says Dr Horrocks.

Ferner says that a major American study quantified major benefit from greater building resilience by reducing casualties and damage, but also minimising the loss of function, social distress, and economic disruption to help the speed of recovery.

The same research also found that the cost of increasing seismic resilience in new buildings was very

“This non-prescriptive framework will help designers to link traditional building performance indicators to wider social, economic and environmental outcomes,” Helen Ferner says.

She argues that the research clearly shows that seismically resilient buildings are no longer a choice or a luxury, but a moral imperative.

“Judging by the enormous trauma suffered in New Zealand, the project team believes the size of the prize, the potential to avoid property loss and associated social distress and economic disruptions, creates a moral imperative to intervene early in the building development phase.”

Your partner in health

South Island men are tough. And men in the building industry often pride themselves on being even tougher than the average man. However, being tough doesn’t mean you shoudn’t look after yourself.

Heart disease and diabetes are two of New Zealand’s biggest killers. Genetics play a big role in who is at risk of these diseases but lifestyle measures like physical activity and focusing on getting the right nutrition for your body can also have a massive impact on whether these diseases affect you.

At West Coast Health we are dedicated to fostering a healthier community across the West Coast region.

As a leading non-profit health service, we pride ourselves on delivering a range of comprehensive healthcare solutions tailored to the unique needs of our communities. Our team of healthcare professionals is committed to providing exceptional care and empowering individuals to take control of their health.

We specialise in proactive health management, offering programs like the Physical

Activity Support Service and online dietician coaching. These programmes are designed to prevent disease and improve quality of life. We work by empowering individuals to make healthy choices. You set the goals for yourself and we support you to get there. All of our services are free to use.

We recognise that mental health is just as important as physical health. Did you know that West Coast Health

Are you concerned about your health?

OR, ARE YOU CONCERNED ABOUT THE HEALTH OF SOMEONE YOU KNOW?

West Coast Health and your Primary Care Practice can help you get the information you need. Contact us today to learn more about:

• Health Improvement Practitioners (HIPs)

• Health Coaches

• Physical Activity Support Services (PASS)

• Brief Intervention Service (BIS)

• Dietitians

offers free brief intervention counselling for West Coasters? We also fund Health Improvement Practitioners (HIP) and Health Coaches to sit in your Primary Care Practice (Doctor’s office) for you to talk to if you want some advice on how to make changes to your life. A visit to a HIP or a Health Coach is free. You can just ring your Practice and ask to make an appointment.

For more information visit westcoasthealth.nz

SEP innovative product design and fabrication

Located in Rukuhia next to Hamilton Airport, SEP design and manufacture quality products from sheet metal and stainless-steel wire including components, accessories, and complete machines for industries such as Food and Dairy, Power Utilities, and the Health sector.

Integrating our own innovative designs many of our products greatly improve efficiency, safety, and connectivity. We have the capacity to produce custom solutions and are ideally set up to fabricate either short or long-production runs, oneoffs, or prototypes.

Our workshop is fully equipped with a 3 metre wide Brake Press, 2.4 metre Guillotine, Water Jet

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Our onsite Electricians allow SEP staff to install custom fit-outs for power utility companies, create custom enclosed Control Panels and Isolators meeting all Hygiene standards, and more. Installing mainly ABB componentry with their reputation for quality, reliable and durable products, SEP is also a supplier of ABB products New Zealand-wide.

With clear communications, a can-do attitude, transparent quoting, and real service, SEP is a quiet achiever. To talk through your upcoming projects, call Aub Hart Phone 0274 778 445 or visit our website at www.sep.co.nz

Reducing the risk

The big four of risk management

In times of trouble, people often wish they had paid more attention to risk management to avoid getting into a dispute.

While there are differences between disputes in commercial as opposed to residential building the fundamentals are much the same. Paying attention to the following four items will save you a lot of grief.

Communication

Most disputes are not about complex issues of law but about much simpler matters. Relationship problems caused by poor communication is usually top of the list.

Someone has been accusatory in their language, and someone becomes defensive. Walls go up and listening goes down.

Setting some rules about how you will strive to communicate is a good start.

• Email communication can be really harmful because often hastily written emails can easily be misinterpreted. You say something in an email that would not be said on the phone.

• Business should not be done in social media. There is still a place for letters to be sent as attachments. Establish guidelines for how and when to use email and text.

• Email should not be used to convey every thought as it arises. Texts should not be used where more formal communication is needed.

• Striving to be on friendly terms does not mean ignoring the terms of a contract. Learning how to have factual or difficult conversations in a neutral manner is vitally important.

• There is a tendency in the building industry for people to either put the contract aside, or worse still not reading it at all, and just doing things in a way that seems to be fair and agreeable.

That is not acceptable, and people often undermine their own rights and obligations.

Knowledge

There have been huge changes for the building industry to adapt to in the ast 20 years, but that rate of change is going to accelerate as we start to build more energy-efficient sustainable buildings and climate change makes economic conditions more difficult.

Insufficient knowledge is behind almost all disputes. Someone does not know something that should be part of their everyday work. All builders need to have an

It is common to find that each party in the contract has a different understanding of what is the highest priority of the project: time, cost or quality. Keep an eye on the big four and enjoy happier clients and less trouble.

active and ongoing learning process for their people and even for the subcontractors they engage. If a subcontractor does not share the values of the contractor or is not doing their job properly then this can be the source of dispute.

Training must go beyond health and safety inductions and events hosted by merchants. Workers need an attitude conducive to ongoing learning and an opportunity to learn in a way that is meaningful for them.

Learning difficulties are common in the building industry so that is even more reason to create learning programs that accommodate individual needs.

Contract

Unfortunately, signing a contract then putting it in a file and not reading it, is all too common. Contracts are just a summary of what has been agreed by the parties, the rules of the game, but it is very common in dispute situations to find that both parties went off on tangents doing things that were never

agreed or responding to issues in a way inconsistent with the terms of a contract.

Do not be intimidated by a contract and if you need assistance with understanding your rights and obligations under the contract, then obtain independent advice.

To conform to the terms of the contract is not “unfriendly” but good communication skills are needed to remind people of their rights and obligations.

The main terms of the contract also need to be known to site management not just head office. Managers should write simple bullet point summaries of the main things the contractor is obliged to do under the contract and ensure this is known by site management. Issues like when a variation or

extension of time is justified, how variations are to be claimed, what are the various event timeframes prescribed, under what circumstances can work be suspended are big issues that should be top of mind.

Having escalation procedures for when someone becomes overwhelmed is very important.

Be careful that you do not default to doing what you think is fair because others may not share that view and it may be inconsistent with the contract.

Excessive hurry

Excessive hurry is almost always a part of a dispute particularly undue haste to get a project started.

It is fatal for parties to rush into starting a project without both parties fully understanding the

risk allocation and their rights and obligations.

If risks are not understood or all loaded onto one party this is a recipe for dispute. If the interests of the parties are not sufficiently aligned then time, cost or quality issues will arise. It is impossible to get the best of time, cost and quality. If quality and cost are genuinely the drivers for the project, then the project needs a realistic program. Unfortunately, irrational and unrealistic time expectations are at the heart of many disputes.

It is common to find that each party in the contract has a different understanding of what is the highest priority of the project: time, cost or quality. Keep an eye on the big four and enjoy happier clients and less trouble.

Steve Alexander has 25

years’ experience resolving building disputes. Visit: www.alexander.co.nz.

SELF-STORAGE IN RICHMOND

Steve Alexander Managing Director and Founder Alexander and Co. Ltd

Tavern with a view

The Collingwood Tavern is located in one of the South Island’s most beautiful places, sunny Golden Bay.

Collingwood Tavern is built on a peninsula with the Aorere River estuary as a back boundary, it has stupendous views out over Golden Bay and to the mountains in the south. This is the place for relaxed living by day and glorious sunsets most evenings.

With a spacious main bar, two garden-bar areas, and a restaurant with indoor and outdoor dining areas, Collingwood Tavern is well positioned to capture much of the passing tourist trade.

It has stupendous views out over Golden Bay and to the mountains in the south.

Enjoy exquisite views from their sunset balcony and two beer gardens. The dining area seats about 100 people and has folding doors that open right out to give an indoor-outdoor eating

experience. Specialities include delicious seafood and tasty roasts, and they also have vegetarian meals available. The tavern has a main bar and it has a separate gaming room with pokies, a garden bar and kitchen services. The garden bar is covered with canvas in the summer for sun protection. There is a second garden area close to the estuary for those who want to sit in the sun.

With the Golden Bay being a popular tourist destination, year round, it is known as a famous departure point for tours to Farewell Spit, and for trampers walking the Heaphy Track. This means the Collingwood Tavern opens

early until late with indoor and outdoor dining available, and takeaway available.

If you’re after a drink at the bar and/or a delicious feed, hit up the Collingwood Tavern today! You can find the tavern on Tasman street in Golden Bay, or to book in advance call the team now on 036 524 8160. Check out their menus online at www.tinkystavern.co.nz.

COLLINGWOOD TAVERN

Streamline your development project

Meridian Compass, where precision meets professionalism in land surveying.

Located in the heart of Marlborough, we specialise in providing top-tier surveying services tailored to your specific needs. Whether you’re a homeowner, developer, or commercial entity, our expert team is equipped to deliver accurate and reliable results that help pave the way for your projects’ success.

Our company is spearheaded by Matt Roach, a licensed land surveyor with a deep understanding of local terrain and regulatory requirements.

Matt and his team are dedicated to offering a seamless experience from the initial consultation to the final delivery of survey results.

We cater to various surveying needs. In residential surveying, we handle everything from boundary adjustments to site planning, ensuring your property is accurately mapped and complies with all regulations. For commercial projects, our services include comprehensive topographic surveys, detailed site layouts,

and precise construction staking. In the agricultural sector, we optimise land use with thorough surveys that support farm planning and the setup of efficient irrigation systems.

At Meridian Compass, we utilise the latest technology and methodologies to ensure precision in every project. Our commitment to quality and client satisfaction makes us the preferred choice in Marlborough and beyond.

Our team is renowned for its profound local knowledge and technical proficiency. Our approach is customer-centric,

prioritising your unique needs and crafting customised solutions. We offer these quality services at competitive, affordable rates.

Begin your project on solid ground with Meridian Compass. Contact us today for a free intial site consultation and discover how we can assist in transforming your vision into reality. Trust us to navigate the complexities of land surveying with unmatched expertise and care.

Tailored heating & cooling excellence

McAlpine Hussmann, where over 90 years of innovation and expertise come together to deliver outstanding refrigeration and HVAC solutions tailored to a wide range of industries, including retail, supermarkets, convenience stores, hospitality, and pharmacies.

As a market leader in New Zealand, we provide our clients with cutting-edge technologies and sustainable practices, ensuring that your investment in our services translates into long-term benefits.

Tailored refrigeration solutions

At McAlpine Hussmann, we understand the critical importance of reliable refrigeration. Our solutions are designed to meet the unique demands of each sector, from dynamic retail environments to specialised pharmaceutical storage. We offer a variety of refrigeration units, including bespoke designs that integrate seamlessly into your space,

enhancing both functionality and aesthetics. Our innovative CaseConnect™ technology revolutionises product presentation while improving efficiency and reliability, leading to better consumer engagement and increased sales.

Advanced HVAC services

Our HVAC solutions go beyond simple temperature control. Designed for both commercial and residential use, our systems prioritise energy efficiency, cost-effectiveness, and environmental sustainability. By utilising filtration and climate control technologies, McAlpine Hussmann ensures optimal indoor air quality,

providing a healthier, more comfortable environment for customers and staff alike.

Commitment to sustainability

Sustainability is at the heart of everything we do. McAlpine Hussmann is dedicted to reducing our ecological footprint by employing the latest in eco-friendly technologies and practices. From utilising natural refrigerants that minimise environmental impact to implementing energy-efficient systems that reduce power consumption, our commitment to the planet is evident in every project we undertake.

Unmatched

service and support

Beyond our products, McAlpine Hussmann prides itself on exceptional customer service. Our team of skilled professionals is committed to providing support throughout the

Designed for both commercial and residential use, our systems prioritise energy efficiency, cost-effectiveness, and environmental sustainability.

lifecycle of your installation, from initial design and installation to ongoing maintenance and upgrades. With McAlpine Hussmann, you are not just purchasing a system; you are investing in a partnership that stands by you every step of the way.

Safety and compliance

Safety is number one in all of our operations. We adhere strictly to all industry regulations and standards. Ensuring that every installation and service we provide not only meets but exceeds safety requirements. Our proactive approach to health, safety, and compliance protects your business, your customers, and your staff.

Why choose McAlpine Hussmann?

Choosing McAlpine Hussmann means opting for a provider that is synonymous with quality, reliability, and innovation. Whether you need a robust refrigeration system for your grocery chain, and sophisticated HVAC setup for your new building or a maintenance check on your existing installations, McAlpine is your trusted partner.

West Coast roads gets investment injection

The Government is investing over $22 million across 18 projects to improve the resilience of roads in the West Coast that have been affected by recent extreme weather.

Then Prime Minister Chris Hipkins confirmed that a dedicated Transport Resilience Fund has been established for early preventative works to protect the state highway network from future severe weather disruption.

Roads in the region that will receive funding from the Transport Resilience Fund are:

• SH6 Gates of Haast river erosion

• SH6 Wanganui River Protection

• SH6 Whataroa River Protection

• SH73 Rock Shelter DSA and Strengthening

• SH73 Otira River Bridge Abutment Protection

• SH6 Buller Gorge Rock Scaling

• SH6 Douglas Culvert No.2 Replacement

• Cascade Corner

• Cobden Hill West

• Depot Creek

• Ormon Falls

• East of McGraths Corner

• McGraths Corner

• Whites Bridge West Approach

• Rocky Point

• SH73 Candys Bend Scouring

• SH6 Meybille Bay Slip

• SH6 Epitaph SlipRemote Monitoring

The Haast to Hawea section of SH6 has also been identified by Waka Kotahi as a high priority for improving the overall resilience of the state highway corridor, with planning work programmed for the 2024-27 NLTP period.

“State Highway 6 is prone to closures from slips, rock falls, and flooding. Additionally, the West Coast is susceptible to adverse weather events,” Chris Hipkins said.

“Many roads in the region have experienced repeated extreme weather events in recent years. We need to

repair our state highways after these events and also build greater resilience so they’re less affected in the future.

No region can foot the bill for building transport resilience on their own. That’s why the Government is coming to the table to support regions with a range of fund to help them recover.

“Investing in resilience creates savings down the road, as well as ensuring communities aren’t cut off and isolated after extreme weather.

“In the 2023 Budget, the Government established the $419 million Transport Resilience Fund to support these investments, as well as setting aside $6 billion in funding to support the implementation of a National Resilience Plan.

“No region can foot the bill for building transport resilience on their own. That’s why the Government is coming to the table to support regions with a range of fund to help them recover.

“We are absolutely committed to the region’s recovery,” Chris Hipkins said.

Associate Transport Minister Damien O’Connor said “We know severe weather events will be an ongoing challenge and West Coast highways need to be resilient.

“This funding will repair vulnerable points in the road network to help mitigate the risk of them failing in future storms or other natural hazards.

“We are committed to support the region to rebuild and build back stronger from the challenges of recent times,” Damien O’Connor said.

“Safer and more resilient roads will also help support tourism on the West Coast –a key industry for the region and for many locals.

EXPERIENCE EXCELLENCE

JOINERY SOLUTIONS

Transforming Spaces with Superior Craftsmanship

Glacier Joinery offers tailored joinery solutions for homes, offices, hotels, and commercial ventures, using top-quality materials and skilled craftsmen for cabinetry and woodwork design and construction including:

 Kitchens

Wardrobes

Wooden Stairs

Cabinets

Gates

Vanities

Shelving

Expert glass solutions at your doorstep

Locally owned and operated, Abel Glass Motueka offers personalised, highquality glass repair and installation services for both commercial and residential customers.

With over 30 years of experience, they pride themselves on exceptional workmanship, attention to detail, and value for money.

Abel Glass can assist with home repairs, such as broken windows, double glazing repairs, sliding doors, and more. Whether it is window repairs, windscreen

replacements, pet doors, mirrors, or glass splashbacks, their team of fully qualified glaziers ensures every project is completed with professionalism.

Abel Glass has been serving Motueka and Tasman clients for over 10 years. With national and international experience gained from working for other companies, Abel Glass recognised an opportunity to provide quality glass services in Motueka, catering for auto, home and business clients.

For service with a smile from local experts or for urgent requests, call the 24-hour, 7-daya-week emergency service.

DATA CABLING/CABINETS

WIFI SYSTEM INSTALLATION/EXTENSION

SOLAR PANELS

ELECTRICAL INSTALLATION

Lighting, Wiring, Outlets

NETWORK SOLUTIONS

Routing, Firewall, Optimization

With expertise spanning electrical, wireless internet, and solar energy installation, ZPM is here to brighten your property with innovation solutions.

From seamless data cabling and WiFi extension to smart electrical and solar systems, we tailor our services to meet your needs.

Get in touch today and discover the power of smart property management with ZPM

Balancing acts

How technology enables and restricts employees

The New Zealand Productivity Commission (Te Kōmihana Whai Hua o Aotearoa) advises the Government on the best ways employees can be productive to support wellbeing and how technology benefits, but also disbenefits, the workplace.

The commission is an independent Crown Entity that started in 2011 after the New Zealand Productivity Commission Act was passed in 2010.

The commission conducts inquiries on topics the Government suggests, investigates how the topic can improve productivity over time, and lets the Government know the underlying issues involved.

The Government requested the commission to conduct an inquiry regarding technological change, disruption, and the future of work.

The commission wrote a final report with recommendations on how to improve productivity and support people’s wellbeing by understanding the benefits and disadvantages of technology in the workplace.

The benefits:

• Technology creates many jobs for people, rather than replaces jobs

• There isn’t much sign of an emerging technological disruption

• Aotearoa needs more advanced technology, as it benefits the economy and workplace productivity

• Aotearoa is well-placed for faster technology adoption in some areas - Aotearoa’s policy settings generally support

The Government requested the commission to conduct an inquiry regarding technological change, disruption, and the future of work.

openness to ideas, goods, services, investment and skills.

The disadvantages:

• Important skill levels in schools are decreasing

• Due to the housing crisis it’s hard for some workers to move to better jobs

• Businesses in general lack dynamism compared to other countries

• Aotearoa should build on its strengths and address its weaknesses:

• Policy changes could be created to prepare Kiwi individuals for the future of work, making training more flexible and accessible

• Improve and increase the amount of careers advice and employment support that’s available

• Address the school system performance

• Update employment law to make people more aware of how technology is changing some workplaces and make it easier for employers (like contractors) to gain benefits like insurance and training opportunities.

Read more about what the commission found when completing its inquiry here: www.productivity.govt.nz/ inquiries/technology-and-thefuture-of-work.

To conclude - technology matters for productivity and wellbeing, but also impacts the future of work.

Firstly, the country is flexible, very skilled, and has a lot of support for people who can provide goods, services, data, ideas, technologies, and investments.

However, Aotearoa also has its disadvantages that limit people’s ability to adopt technology in the future and/or make it harder for some people to adapt to the technological changes.

For instance, there’s a poorer socio-economic disadvantage for minorities such as Māori and Pasifika communities, and Aotearoa (by international standards) seems less enthusiastic about emerging technologies impacting Aotearoa’s social and economic aspects.

A link to the final report can be found here: www. productivity.govt.nz/assets/ Documents/223e187413/At-aglance_Technological-changeand-future-of-work.pdf

Why have an advance care plan?

Advance care planning can give you the chance to say what treatment you would or would not want particularly for end-of-life care.

Advance care planning also gives everyone a chance to say what treatment they would and would not want, particularly for future and end of life care.

Writing down your thoughts and wishes, gives you a voice if you are no longer able to speak. This Advanced Care Plan can assist families and health care providers to know what you want.

You have some control of your health care, often reducing stress and anxiety for you and your whanau.

Your whanau, although grieving, may get some comfort, knowing that they were able to carry out your wishes.

Ask about an advance care plan at your general practice. A doctor, nurse or other health professional can help you with this.

Marlborough Primary Health contracts health professionals and organisations in the community, such as General Practices, to deliver quality primary health care services to an enrolled population of approximately 48,000 people and a total of ten (10) General Practices operating in Blenheim, Picton, Renwick and Havelock.

COVID-19 has changed the ways we think about our health.

Talk to your whānau today about advance care planning.

If your health changed suddenly, would your whānau know what care you would want? ‘What type of care would you like if you were unable to care for yourself?’

Full disclosure

What you need to know about the new product information requirements

By Ben Mitchell, a solicitor from Auckland law firm Martelli McKegg

If you manufacture, import, advertise, or sell products in New Zealand that are used in construction, you will need to make sure to comply with the new product information disclosure requirements imposed by the Building (Building Product Information Requirements) Regulations 2022 (Regulations).

What products do the disclosure requirements apply to?

The disclosure requirements imposed by the Regulations apply to “designated building products” of which there are two classes.

The first category (Class 1) is a building product that:

• Is mass produced or is produced in batches to a general specification; and

• Is available for wholesale or retail purchase; and

Unfortunately, the Regulations do not define “building work”. However, it is likely this will be interpreted to be consistent with the expansive definition under the Building Act 2004.

• Is new (and not used); and

• When used in building work, may affect whether the building work complies with the building code; and

• Is not a product of a kind described in regulation 7.

The second category (Class 2) is a building product that:

• Is based on a line of products where each unit is customised to the specification of the client; and

• Is new (and not used); and

• When used in building work, may affect whether the building work complies with the building code; and

• Is not a product of the kind described in regulation 7.

Although the Regulations establish two classes of captured products, the first and essential question to be asked is, if used in building work is, how likely will the product affect how the building work complies with the building code?

If the answer is that the product “may” affect how the building work complies with the building code, it is very likely the disclosure requirements of the Regulations will apply.

Unfortunately, the Regulations do not define “building work”. However, it is likely this will be interpreted to be consistent with the expansive definition under the Building Act 2004.

The use of the word “may” is of crucial importance. It suggests that the threshold is low and if there is a chance, it is very likely the product will be captured.

The Regulations do helpfully provide some examples of captured products. However, it does need to be noted these are just examples.

In terms of Class 1:

• Cladding products

• Mechanical fixings

• Insulation products

• Internal lining products

• Roofing products

• Structural wood-based products

• Structural steel and reinforcing products

• Sanitary plumbing and drainage products, including tapware. For Class 2, just one example has been provided. This being “external window joinery and doors that have been customised to the specifications of individual clients”.

The type of information that you will need to disclose depends on whether the product falls into Class 1 or Class 2.

Undoubtedly, there will be some products that will clearly be captured, such as the above examples. However, for other products, it is less clear. For example, while some paint could be said to be purely aesthetic, other types of paint provide important waterproofing qualities that certainly affect how building work will comply with the building code.

If you believe your product may be captured, the next question to ask is whether the product is excluded under regulation 7 of the Regulations. These excluded products are:

• A building product which has a product certificate registered under s 272A of the Building Act 2004

• A temporary building product that does not form part of the building when construction is complete.

The example given is a barrier used during demolition or construction

• A building product that is - A gas appliance or fitting (within the meaning of s 2(1) of the Gas Act 1992).

- An electrical appliance or fitting (within the meaning of s 2(1) of the Electricity Act 1992).

While it might be appealing to look into obtaining a product certificate under section 272A of the Building Act 2004, this does come with significant administrative hurdles and cost. Whether it is worthwhile to obtain a product certificate would need to be a separate article. However, it could certainly be the case

that if the product justifies it, a product certificate could be an option.

When do the disclosure requirements apply?

The disclosure requirements imposed by the Regulations apply to “designated building products manufactured in, or imported into, New Zealand,” from (including) 11 December 2023.

While this suggests there is still some time for people who merely sell building products that were manufactured or imported into New Zealand before this date, those products will soon be sold and replaced with captured products.

If you manufacture or import into New Zealand a captured product, the disclosure requirements already apply.

Who is responsible for what in relation to a captured product?

The requirements imposed on you depend on which category of “responsible person” you fall into. Again, there are two categories.

The first category (Category 1) is a person living, or incorporated, in New Zealand, that is the manufacturer or importer of the captured product. This category is responsible to:

These requirements need to be complied with before the captured product is ordered for supply by a wholesaler, retailer, or other distributer of the captured product.

These requirements need to be complied with before the

captured product is ordered by a client.

Regardless of whether you may fall into Category 1 or Category 2, there are going to be significant practicality difficulties in complying with the above obligations.

What information needs to be disclosed?

As noted above, if you fall into Category 1, you are required to “collate and produce the required product information.” However, even if you fall into Category 2, the type of information that needs to be collated and produced may be of concern to you and your business.

The type of information that you will need to disclose depends on whether the product falls into Class 1 or Class 2. Unfortunately, the lists are too long to repeat in full but they both relevantly include:

• A description of the captured product (including the name of the product and its intended use).

• Whether overseas or in New Zealand, the legal and trading name of the manufacturer or manufacturers, including its address/addresses, its internet site (if any), its public email (if any), its NZBN (if any).

• Likewise, if the captured product is imported, the information immediately above is required for the importer.

• A statement specifying the clauses of the building code that are relevant, with

a statement of the captured product’s intended scope and use.

• How the captured product is expected to contribute to the relevant clauses of the building code.

• Information on the limitations of the captured product.

• Installation requirements

• Maintenance requirements. Although this is not a comprehensive summary of both lists, it should give a good idea of the extent of the information that will need to be disclosed.

The consequences of non-compliance

There are consequences for non-compliance. Under s 362VB of the Building Act 2004, if you, “in trade”, supply, offer to supply, advertise the supply of, or import into New Zealand for the purpose of supply, a captured product under the Regulations, you can be convicted of an offence and liable, in the case of an individual, to a fine not exceeding $10,000, and in the case of a body corporate, to a fine not exceeding $30,000.00.

Ben Mitchell Martelli McKegg Law Firm

AI in project management

By Ben O’Connell

Artificial intelligence is our new reality. AI promises to revolutionise pretty much every aspect of our lives, and project management is no exception.

AI is changing the future of work, and with that comes concerns around automation and job losses, and equal excitement around efficiency and the technology’s potential. Similarly, the role of a project manager is increasingly complex.

It’s important to note that AI will enhance and not replace skilled trades. Time is of the essence in trades and processes such as selfcorrection, reasoning, and data-based decision-making are where AI can help.

AI can transform project management by automating workflows, streamlining processes, and providing accurate information. It can eliminate repetitive tasks and free up project managers to focus on other important aspects of their jobs.

Let’s make it clear: AI is not going to solve everything. There are countless soft skills AI cannot replicate. Project managers will still need strong communication, negotiation, leadership, and critical thinking skills to manage teams, navigate challenges, and build strong client relationships.

It’s important to note that AI will enhance and not replace skilled trades. Time is of the essence in trades and processes such as selfcorrection, reasoning, and data-based decision-making are where AI can help.

Further issues around AI include the costs of implementing these processes and a need for businesses to invest in data collection and management, as most software relies on clear and accurate data to work well. Successfully integrating AI also takes buy-in from all stakeholders; maintaining a healthy level of scepticism is totally understandable.

While it could lead to some job losses in the trades, AI is also likely to create new opportunities. Tradies with strong AI skills could be in high demand to develop and implement these tools for the industry. Researching how AI can help your unique needs will truly grasp its potential for you. But what areas of project management are set to be disrupted in the future?

Scheduling

AI-powered tools can evaluate factors like travel time, worker availability, and skillsets to optimise job assignments and routes. This results in increased efficiency and reduced wasted time, so happier customers. Deputy is a good example, a shift scheduling software that provides cloud-based workforce management. GeoOp is a similar job management software for tradies.

Client relationships

AI can analyse customer data and interactions to personalise services, predict customer needs, and improve the overall customer experience. This can strengthen customer relationships and increase customer loyalty. Pipedrive is one tool that efficiently manages leads and deals, and Monday, Zendesk, and Capsule are others.

Finances

AI can be applied in financial management for better budgeting and forecasting. AI tools can identify areas for cost reduction, detect anomalies in financial transactions, and reduce the risk of fraud. This can lead to significant financial savings and improved business stability. Financial AI tools are common today; you’ve probably already heard of Xero and MYOB.

Marketing

AI can be leveraged to optimise your website for search engines, automate social media posts, and tailor marketing strategies based on online customer behaviour. This can increase website traffic, improve brand awareness, and generate more leads and sales. Google Analytics and Hootsuite are two common platforms.

PAKAWAU BEACH CAMP PAKAWAU BEACH CAMP Golden Bay Golden Bay

Pakawau Beach Camp sits on the sea front enabling you to enjoy the sounds of waves meeting the shore, to amazing sunrise and sunsets over the ocean.

Come and pitch your tent, park your camper van or stay in one of our beach front cabins.

Less than a 20-minute drive from Pakawau you will discover an abundance of stunning scenery including, Cape Farewell, Farewell Spit, Puponga Farm and Wharariki Beach.

After a fun day out, enjoy casual dining at the Old School Café Restaurant, right across the road.

Pakawau Beach Camp 03 524 8308 accompakawaubeachpark@gmail.com

Minimising landslide slip-ups

New guidance and mapping measures improve resilience

By Ben O’Connell

In January, GNS Science released new land-use planning guidance to manage and reduce the risks of landslides.

Considering the dangers of land use early in the planning and decision-making processes avoids costly and potentially dangerous new developments that could pose risks to people, property, and the planet down the line.

Guidance co-author and GNS Engineering Geologist Dr Saskia de Vilder said that, on average, landslides cost Aotearoa New Zealand $250 million yearly and have resulted in more fatalities than earthquakes, volcanoes and tsunamis combined.

Landslide Planning Guidance: Reducing Landslide Risk through Land-Use Planning has been developed to support a risk-based approach to land-use planning that considers changing weather patterns as well as current risk assessment, management and mitigation practices.

At a minimum, the Guidance recommends councils develop a landslide susceptibility map to better inform important decisions that determine where and how we live.

The Landslide Planning Guidance updates previous guidance released more than 15 years ago. It emphasises the need to consider climate-change scenarios likely to exacerbate landslide hazards due to changing weather patterns.

New Zealand now boasts one of the largest single-event inventories of landslides globally. Senior Lecturer and lead researcher Dr Tom Robinson was surprised at the sheer number of landslides they found.

Speaking of mapping, this new landslide guidance coincides with recent research on landslides from the University of Canterbury. Canterbury researchers and students mapped 140,000 landslides triggered by Cyclone Gabrielle to create models for future weather events.

New Zealand now boasts one of the largest single-event inventories of landslides globally. Senior Lecturer and lead researcher Dr Tom Robinson was surprised at the sheer number of landslides they found, “in the Esk Valley

alone, in just one 12km square area, you’ve got over 2000 landslides.”

Mapping and guidance measures both lead to improved future resilience. “Landslides are difficult to forecast and predict; the only way you can do it is by looking at where they’ve occurred in the past,” Dr Robinson says. “Mapping tells us the conditions that triggered them in the past: the type of slopes, what is on the land, has rainfall caused it and if so, how intense was the rainfall, was it an earthquake, how

much shaking was there – all critical information telling us how landslides occur.

“So, when we have a future event, particularly rainfall, we could say this is where we think a landslide is most likely to occur, the predicted trajectory, what’s in its path, and therefore do we need to shut roads, do we need to evacuate people?” says Dr Robinson.

The team uses aerial imagery with up to 30cm high resolution, imagery so powerful you could spot a laptop on the ground for mapping.

“We’ve mapped over 140,000 landsides, the smallest roughly the size of a car, from 20 percent of the area affected by Cyclone Gabrielle. We can’t possibly map them all, but we believe there are about 750850,000 in total.”

Redcliffs 2011 earthquake damage.

From our family to yours

Butt Drilling Limited’s commitment to quality

In the heart of Marlborough is Butt Drilling, a beacon of familyowned in the drilling industry.

Established in 1990 and brought by its current owners five years ago, this company has grown from modest beginnings into a leader in drilling services, maintaining a steadfast commitment to family values, community and quality service.

Butt Drilling is more than just a business; it is a legacy built on the principles of hard work, integrity, and a family bond. The family behind the company has not only succeeded in continuing to build a reputable name in the industry but has also nurtured a workplace that feels like home. Each employee who is local to the area is a testament to the company’s dedication to maintaining a supportive and encouraging environment.

Their broad range of services, from drilling water walls for various needs such as domestic, agricultural, and commercial

purposes to offering modern solutions like infiltration galleries, highlights their adaptability and innovation. Each project is handled with the utmost care, precision, and expertise, attributes that have earned them over 1500 well installations across Marlborough, Nelson, and North Canterbury.

The commitment of Butt Drilling to the community extends beyond just providing services. They are actively

involved in enhancing the industry standards by being part of the New Zealand Drilling Federation. This involvement not only helps in advancing drilling practices but also ensures that they are at the forefront of technological advancements and ecological sustainability.

The core of Butt Drilling’s operation is its people. With a team that understands the local terrain and the technical nuances of drilling, they offer unmatched expertise in the field. The family ownership is shown in how they handle their operations – with transparency, honesty, and a customer-first mindset. This philosophy has not only led to high customer satisfaction but has also gained them loyalty among their clients, who value the personal touch that only a family-owned business can offer.

Butt Drilling moved into their new purpose-built workshop in Riverlands in December 2022, where they are poised for even

greater success. With cuttingedge facilities and consistent dedication to excellence, they are set to further their legacy while sticking to their roots – a family-owned business that values every relationship and project, big or small.

For anyone in Marlborough and beyond looking for reliable, efficient, and expert drilling services, Butt Drilling stands out as the go-to provider. Their story is one of a family that drills together, stays together and succeeds together. This is not just a business; it is a family legacy that continues to make a mark in the drilling industry, one well at a time.

Butt Drilling Limited 12 Bristol Street, Riverlands, Blenheim 021 343 089 - Rick Line, Director 021 743 089 - Curtis Line admin@buttdrilling.co.nz www.buttdrilling.co.nz

Estimating ...how long the job will take

How often have you quoted a job but ended up losing on it, because the hours blew out? It happens to everyone once in a while… but get this wrong too often and you won’t be very profitable.

Even the big players in our industry get this wrong more than they’d like to admit… Fletchers got in trouble with overruns on a number of their major projects. It cost them millions.

Did you know: The Sydney Opera House was completed a massive ten years behind schedule!

Clearly when you want to make money on your jobs, it’s very important to accurately estimate how much time they will take. If you’ve ever wondered why your quotes don’t work out, this is a good starting point.

Research shows only 17 percent of the population can accurately estimate how much time a job or task will take. Basically, we’re all optimists. We tend to believe the future will be better than the past.

If only 17 percent can estimate time correctly, that means 83 percent are getting it wrong.

Mistakes include:

• Failing to consider how long it’s taken us to complete similar tasks in the past (science calls this = planning fallacy)

• Assuming that we won’t run into any complications that will cause delays (science calls

this = optimism bias). There are a lot of moving parts in a business and if you often underestimate hours on jobs, or don’t allow for unexpected curve balls, you won’t make the margin you need to.

Achieving target margins consistently on every job is key when it comes to being profitable. Let’s not forget: When costs exceed what you quoted, that cold hard cash comes directly out of your pocket.

In very real terms, that means less income for you plus stressful cashflow. And that is all kinds of bad, especially for a family business. Plus, cashflow headaches are the number one reason for going broke.

So how can the average tradie business owner override their planning fallacy and optimism bias?

The secret is to be dealing with concrete numbers. They

make things very black and white, allowing for smarter decision-making. That’s the kind of strategic thinking required for both quick wins and long term success.

I’ve worked with hundreds of tradie businesses and I can tell you: It’s amazing the insights you can get from a simple deep dive into the numbers - when you know what to look for (most don’t).

Yes, one important part of this is back-costing (checking all costs – including time/labour - on previous jobs to see how your quote stacked up against what actually happened).

To do this, you first need to be working with the right project management software, time tracking app or system, for your specific business.

Then, the main thing is, use a structure - so back-costing is easy and doesn’t take all day! Especially important if you run

multiple jobs and have a large team.

Revisit regularly and make sure you are charging enough. The trick is to then actually deploy this historical data and turn it into increased accuracy on your next job.

When I assist clients in the business coaching process to really look at their previous jobs, they can see exactly where they’re losing money on under-quoting. From then on, everything becomes much easier.

Be sure to use a pricing formula so you have certainty that your price is fair. Not too low that you won’t make money. Not too high that you’ll be priced out (or if you are, you can walk away confident, knowing the margin was not enough – you don’t work for free).

Using a formula also means you price consistently regardless of whether you’re feeling

I’ve worked with hundreds of tradie businesses and I can tell you: It’s amazing the insights you can get from a simple deep dive into the numbers - when you know what to look for (most don’t).

optimistic, tired, are desperate for work for your team, or have too much on already.

Include your “fudge ratio” calculation and buffer percentage to build in extra hours for delivery delays, staff absences, weather, etc.

Finally, you need a strong gross profit margin. A “good” margin to add on top varies for each company, depending on your overheads and industry. So it’s important to know what is a good margin percentage to be aiming

at for you, in your market. Although, if it’s not at least 20 percent, I’d encourage you to make some adjustments right away. Anything under this and you won’t be able to cover overheads and still make the profits you need to maintain a successful business.

By the way, studies also show that while we’re generally bad at estimating how long it takes us to do the job, we’re quite good at estimating how much time the job will take when others are doing the work.

So harnessing the talents and objectivity of someone outside your immediate team (like a QS) could be a smart move.

Ultimately, accurate predictions and back-costing effectively ensures you will achieve the target margins you need, become more profitable, and grow safely, even with the variables, and any bias you may have.

Tweaks like this in profitability plus productivity typically get my clients return-on-investment

far exceeding my fees inside three to six months.

Book a time with me here to find out how I might be able to help you: https://nextleveltradie. co.nz/nextstep.

Daniel Fitzpatrick Next Level Tradie

When the banter goes too far

The next steps after onsite bullying and harassment

By Ben O’Connell

Working in trades isn’t for the faint of heart. Banter is typical and part of the job. But what happens when it goes too far?

In some workplaces, jokes are a way for people to communicate and have fun. Kiwis often bond with sarcasm.

But all tradespeople should be treated with dignity on the job. Everyone has the right to a safe and respectful work environment.

And it can go both ways. It should go without saying that workers must be respectful to clients.

Recently, a plasterer admitted he went too far after calling his client a con man and child molester because the client wouldn’t pay $16,000 for the work completed.

Written contracts are crucial in settling any dispute, and ensuring licences are up to date is also key.

But for those subject to abuse, there are steps to take when things get out of hand.

Firstly, record every instance where an insult or inappropriate behaviour occurs. This includes the date, time, who was involved, what was said or done, and any witnesses.

This documentation can serve as evidence if a formal complaint needs to be made.

It can be easier said than done, but a direct conversation might be the best action if the person making the insults is a colleague.

Calmly and professionally explain how their behaviour affects you and ask them to stop.

If the insults are severe or frequent, and the employer fails to take action, it may be necessary to seek legal advice.

A lawyer can guide whether there are grounds for a complaint or legal action.

If the insults continue or escalate, reporting the incident is essential. Supervisors should be able to guide how to handle the situation and may be able to intervene to stop the behaviour.

Don’t hesitate to contact your support network for advice and emotional support. This could be a union representative, a trusted colleague, a mental health professional, Employment New Zealand, and so on.

If the insults are severe or frequent, and the employer fails to take action, it may

be necessary to seek legal advice. A lawyer can guide whether there are grounds for a complaint or legal action.

There can be a real hardenup mentality when faced with abuse, but times are changing. It doesn’t have to be this way.

Don’t suffer in silence if you’re facing insults or inappropriate behaviour at work. Take action to protect your well-being and dignity.

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Counting the cost of corrosion

The global cost of corrosion was an estimated $2.5 trillion USD in 2016, according to a study published by NACE International.

Allowing for inflation, that number could easily surpass $3 trillion USD today. Unfortunately, many are not aware of the high price tag of corrosion even for individual businesses and corporations.

Why count the cost of corrosion?

Failure to count the cost of corrosion may leave manufacturers and facility managers blindsided by consequences such as faulty equipment, delayed production, and customer rust claims that must be made right.

Furthermore, without counting the cost, managers may have difficulty getting the approval needed to budget time and money for corrosion prevention. Counting the cost of

corrosion helps achieve both the motivation and approval needed to take corrosion protection measures.

Identifying corrosion costs in manufacturing

Manufacturers who work with metal must beware of corrosion risks at every stage: receipt of goods, work-in-progress (WIP cycle), and export.

Manufacturers can hope that suppliers will make good on any raw materials that arrive rusty on site, but they cannot make up for production delays or time lost negotiating the rust claim. In the WIP cycle, manufacturers lose time and sometimes metal when parts rust in between manufacturing stages and must be restored or scrapped. Export is even more dangerous.

Unpredictable, fluctuating conditions inside a truck or shipping container may lead to corrosion from condensation by the time the customer receives the good. This is perhaps the costliest corrosion stage of all, as the manufacturer must remedy the damage done.

An example of how significant corrosion costs can be for manufacturers is apparent when calculating the price tag of a 1.5 percent economic loss due to corrosion at a hypothetical steel mill operating 24/7 and producing 100 ten-ton coils per shift, three shifts per day at a nominal material and manufacturing cost of $300 per ton.

Identifying

corrosion costs on greenfield projects

New oil and gas facilities or other large-scale energy projects often take years to build. Meanwhile, custom assets shipped from afar may sit one or two years before being installed. With inadequate protection, the component may be rusty and unsafe by commissioning time. Replacement could not only cost tens of thousands of dollars, but the time and distance required to make and deliver a new part could significantly delay the opening of the project.

Identifying corrosion costs on spares

The energy industry and other industrial plants also need critical and operational spares that can be installed quickly and efficiently if a main component fails or needs repair.

Unfortunately, it is not uncommon for large warehouses to be full of rusty spares that are in no condition to use at a moment’s notice. Even though some of these individual pieces may not cost much, the total cost of corrosion from lacking a clean spare can quickly add up to millions of dollars of lost production value from downtime, along with the cost of restoration and the intangible cost of safety issues that could arise from installing a faulty component.

It’s time to calculate your ROI. Whether the calculation is done on paper or estimated mentally, counting the cost of corrosion gives a better picture of the importance of corrosion protection, allowing decision-makers to see the value of making a small relative investment in rust prevention to protect their bottom line.

• Tree Works

• Earthworks

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• Driveways

• Pot-holes

• Concrete

• Fencing

• Post holes

• Lawns & Turf

Today’s AI tools are transforming content creation. The latest and most advanced AI tools cater to various tasks, including video editing, writing assistance, voice generation, editing support, and language translation.

Here are some AI tools that can assist you by undertaking tasks and saving you valuable time.

Digital aids

Pictory

Forget expensive video production or spending hours learning complex editing software. Pictory is an AIpowered platform that turns anyone into a video editing pro. Simply input your text or script, choose from a vast library of video clips and images, and let Pictory’s AI handle the rest. It automatically generates video scripts, edits clips, adds music and sound effects, and even creates intros and outros. The result? High-quality, engaging videos that can be used for marketing, social media, training, and more.

Jasper

Writer’s block? No problem! Jasper is your AI writing assistant who can help you create content, from blog posts and articles to social media captions and marketing copy. It can even generate different creative text formats like poems, code, scripts, and musical pieces. Whether you need help brainstorming ideas, overcoming writer’s block, or simply polishing your existing work, Jasper is a valuable tool for any business owner who wants to create high-quality content without the hassle.

Murf

Forget robotic, monotone voices. Murf uses AI to create realistic-sounding human voices from text. This means you can create narrated videos, explainer videos, podcasts, and even custom voiceovers for marketing

materials and presentations, all without needing a professional voice actor. Murf offers a wide range of voices and accents, so you can find the perfect one to match your brand and message.

Gling

Gling is your AI editing sidekick, instantly detecting and snipping away silences and disfluencies from your videos in just minutes. Skip the tedious chopping and scrubbing, upload your

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footage, and let Gling’s smart tools cut the fat, leaving you with a polished, ready-to-share masterpiece. Focus on your creative magic while Gling handles the editing grind.

AutoPod

Filming with multiple cameras can be great for capturing different angles and perspectives, but editing the footage can be a timeconsuming nightmare.

AutoPod’s AI takes the pain out of multi-cam editing by seamlessly blending footage from up to 10 cameras and 10 mics into a near-finished edit. It easily handles solo shots, group chats, and wide angles and even adapts to your preferred editing style. Whether you’re a seasoned editor or a complete beginner, AutoPod can save you hours of time and effort.

Heygen

Reach a global audience and break down language barriers with Heygen’s AI. This innovative platform seamlessly translates and dubs your videos, perfectly syncing speech with lip movements for a natural, engaging experience: no more clunky subtitles or distracting text overlays. With Heygen, your videos can be understood and enjoyed by anyone, anywhere in the world.

Building consents down after peak

Requests to build new homes have plummeted after an all-time sector peak.

Generally, new home consents in the last few years have risen from late 2020 and then declined from late 2022.

Per Stats NZ, 37,239 new homes were consented to in the year ending December 2023, down from a peak of 51,015 in the year ending May 2022.

Decreased consent levels are due to many factors, two of which are increased construction costs and the impact of record immigration on housing demand and market prices. Data only indicates changes

in the number of houses nationwide because some consented homes are not built.

Multi-unit homes have been the dwelling type most consented to since March 2022. These include townhouses, apartments, retirement village units, and flats.

Of the multi-unit homes consented to in the year ended December 2023, there were 16,779 townhouses, flats, and units, down 19 percent compared with the year ended December 2022.

2,518 of consented homes were apartments, down 43 percent, and 2,267 were retirement village units, down 23 percent.

The regions with the highest number of consents issued were Auckland, with 15,488; Canterbury, with 6959; the Waikato, with 3548; and Wellington, with 2427.

2023 was the first year that the number of townhouses, flats, and units consented exceeded the number of

In the year ending December 2023, 15,675 stand-alone houses were consented, down 27 percent from the year ending December 2022.

By Ben O’Connell

stand-alone houses. Consent figures also demonstrate New Zealand’s growing urbanisation. These days, it’s one step backward and three steps forward when building homes.

The number of new highdensity homes consented to typically forecasts increased removal of existing older stand-alone properties.

In the year ending December 2023, 15,675 stand-alone houses were consented, down 27 percent from the year ending December 2022.

This continued into January 2024. 36,453 new homes were consented, down 26 percent from the year ended January 2023.

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DN Civil is a local family owned civil construction company based in Nelson, serving the upper South Island.

PLANT & EQUIPMENT

We can supply a wide variety of plant and equipment to complete any of your projects.

AGGREGATE SUPPLY

DN Civil is able to source and deliver to your site a wide range of locally sourced aggregates from around the top of the south.

SERVICES

Certifying Drainlayer

House Drains

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