Mitre 10 In Trade Magazine - June 2015 by Mitre 10 Trade

JUNE 2015

COLLABORATION AND PARTNERSHIPS CHANCELLOR HOMES’ WINNING FORMULA LEGAL: HEALTH & SAFETY PENALTIES

SPECIAL FEATURE:

HOW IS THE LBP SCHEME WORKING FOR THE INDUSTRY?

SEE INSIDE FOR CHANCES TO WIN GREAT PRODUCTS Offers open to account holders only Call 0800 M10 TRADE to find out more All prices and offers in this publication are valid from from Monday June 1 – Tuesday June 30 2015. from participating stores.

FOREWORD Looking at the LBP One of the biggest changes in the last decade for the building and construction industry has been the implementation of the Licensed Building Practitioners scheme. Initially, the scheme polarized opinion throughout the industry, although it did bring it right into line with other industry sectors that had been using licensing as a benchmark for some time. Eight years after the scheme was launched – and on the cusp of some changes to the way it’s implemented – we’ve chatted to a couple of industry bodies and to the Registrar Building Practitioner Licensing, Paul Hobbs, about the way it’s working, what’s coming up and what changes could be made. The MBIE website states the scheme’s purpose is “to encourage competent building practitioners to build homes right the first time.” It’s going to be interesting to see how the scheme evolves so that all industry stakeholders end up with the same desired outcome; - a quality system that is fair, manageable, robust and delivers on that original intent. Keeping up the pattern of being involved with industry happenings, Mitre 10 Trade is also going to be involved with this year’s buildnz |designex event, to be held at the ASB Showgrounds in Auckland from June 21-23. This is a leading trade event for the industry and will involve professionals and innovators from right across the spectrum where they showcase their products, network and develop key relationships with the clients and customers. We look forward to seeing you there.

Neil Cowie

Adrian Moreton

Chief Executive Officer Mitre 10 (New Zealand) Ltd

Acting General Manager Trade Mitre 10 (New Zealand) Ltd

CONTENTS 2

FEATURE

The Licensed Building Practitioner scheme

PROFILE

Collaboration and Partnerships

Since the LBP scheme came into force, there have been a number of changes to the way it has been administered and, with more changes on the way later this year, we look at how the scheme’s been working for the industry.

Mitre 10 MEGA Glenfield General Manager Trade Sales, Simon Burden, says collaboration and partnerships with trade customers is the way to forming a strong working relationship.

Volume 8, Issue 12 June 2015

PROFILE

Chancellor Construction

Wayne Zeng is making his mark in the Auckland building sector with his company, Chancellor Construction. After moving to New Zealand from his native China, Wayne has built his business and formed strong ties with Mitre 10 MEGA Botany.

Mitre 10 In Trade magazine is published 12 times a year in association with Mitre 10.

BRANZ

Managing Editor

LEGAL

Health and Safety penalties

The most significant reform of workplace health and safety in 20 years is underway but, even though the Health and Safety Reform Bill is not yet law, several changes are already in place.

TRADES COACH

There are fundamental principles to selling that can make the sales process effective and rewarding for both buyer and seller.

BCITO

Got a trade? Got it made!

16 17

STORE NEWS

News from around Mitre 10 MEGA stores.

REGISTERED MASTER BUILDERS

The Registered Master Builders Association is holding it’s 115th annual conference in Hamilton from July 2-4 and, for the first time, is holding a session that will be open to non Master Builder member Licensed Building Practitioners.

SITE SAFE NZ

Toolbox talk

BUSINESS

RightWay

APPRENTICE

Georgie Young explains her approach to the BCITO theory component of her building apprenticeship.

THE BACK PAGE

Stuff to win, points to earn. Don’t miss the back page.

August’s ‘GOT A TRADE’ week is part of a nationwide campaign to raise awareness of workplace qualifications among jobseekers, their teachers and parents.

It’s probably the best thing on your worksite, everyone can use it, but many do not. It can increase productivity and reduce health and safety issues on the site. It’s a toolbox talk.

Scott Wilson Phone: 021 725 061 Email: editor@M10magazine.co.nz

Contributors

Adrienne Jervis Robin Penney – Meredith Connell BRANZ BCITO Site Safe NZ RightWay Ltd Andy Burrows – Trades Coach Registered Master Builders Association Georgie Young - Apprentice

Printer

Nicholson Print Solutions

Enquiries

ReFocus Media Ltd P O Box 21081 Flagstaff Hamilton 3256 Email: Info@refocusmedia.co.nz Refocus Media Ltd reserves the right to accept or reject all editorial or advertising material. No part of In Trade magazine may be published without the express permission of the publisher. All rights reserved. Opinions expressed in In Trade magazine are not necessarily those of Mitre 10 or the publisher. No responsibility is accepted for the suggestions of the contributors or conclusions that may be drawn from them. Although the publisher has made every effort to ensure accuracy, the reader remains responsible for the correct use and selection of any tools, materials and systems followed, as well as the following of any laws or codes that may apply.

LBP SCHEME

SPECIAL FEATURE

‘When originally launched, one of the purposes of the LBP scheme was to encourage competent building practitioners to build homes right the first time. ‘

Where are we with LBP? The Licensed Building Practitioner (LBP) scheme was launched in 2007 at a time when there was intense scrutiny on the building and construction industry in New Zealand. The extent of the recent leaky buildings problem had become apparent and building practitioners were under pressure to be made accountable for the work they were doing. The government-backed LBP scheme - designed to encourage building practitioners to build homes right the first time – came about following an amendment to the Building Act 2004, bringing builders into line with other industry practitioners. Since the LBP scheme came into force, there have been a 2

number of changes to the way it has been administered, and to the requirements placed on those holding licenses, which now number more than 24,000 across seven licensing classes: • • • • • • •

Design (classes 1, 2 and 3) Site (classes 1, 2 and 3) Carpentry Roofing External plastering Brick and Blocklaying Foundations

The scheme itself has come in for criticism at times, and Certified Builders Chief Executive Grant Florence says, although the premise behind the licensing of building practitioners is a worthy one, there is still some work to be done.

LBP SCHEME “More robust minimum standards of training and skill and more stringent requirements for ongoing professional development would play a role in ensuring builders and other tradespeople can meet their compliance obligations under the new Building Act regulations that took effect in January this year,” he says. “As it stands, the ambulance is at the proverbial bottom of the cliff – with tough penalties in place for non-compliance with the new regulations, without a sufficiently robust licensing scheme to ensure builders and other tradespeople are best equipped to meet expected standards. “The current scheme basically involves tradespeople filling out a form and outlining their experience and/or training, as well as paying a fee. Unfortunately, many in the industry view this purely as a hidden tax and box-ticking exercise. And for consumers, it’s not much comfort to know a tradesperson can become licensed by simply filling out a form and paying a fee.”

”Also, there is concern in some quarters that an unintended consequence of the scheme is that some LBPs are tarnishing the scheme by touting it as a quality mark but not being held to account for their performance,” he says.

After a review of the scheme, further changes to the licensing programme were announced earlier this year by Paul Hobbs, the Building Practitioner Licensing Registrar for the Ministry of Building, Innovation and Emplyment (MBIE), and will be implemented from November. “The current scheme requires LBPs to earn a set number of points in order to retain their licence, much of which relies on self-directed learning on the LBP’s part,” Mr Hobbs says. “This system has been in place since the scheme’s inception albeit with some slight adjustments over time. The review found that there are some credibility issues with the current scheme, including some LBPs doing activities that are not relevant to their licence class in order to earn the required number of points. It’s really important to keep in mind that this scheme is still relatively new, when you compare it to other occupational licensing schemes operating in the sector, such as the Electrical Workers and Plumbers, Gasfitters and Drainlayers schemes, which have been around for decades.” The new scheme was developed in consultation with LBPs, stakeholders and representatives from the Building Practitioners Board. It consists of both compulsory and elective activities, which is a departure from the current framework that relies solely on elective activities and gaining enough points to satisfy

The new compulsory activities will consist of: • reading LBP News (part of MBIE’s Codewords newsletter), and • identifying two examples of on-the-job learning over the two-year skills cycle. The LBP News articles will focus on legislative and technological changes. LBPs will only have to read articles that are relevant to their licence class competencies (and underpinning area or areas of practice). LBPs will be required to complete a short quiz to ensure the key points have been understood. The on-the-job learning component recognises that LBPs often learn or upskill as they are working in the design office or out on site and as such the new scheme will look to harness these naturally occurring learning opportunities. “The upcoming changes to the relicensing process for LBPs are in themselves fine. However, they miss the point,” says David Kelly. “When it was introduced, the LBP scheme for builders was a new requirement for New Zealand. The point that was emphasised at the time was that it was not an end in itself, but part of a broader system approach that was meant to improve the quality of our buildings (particularly residential), to give consumers greater confidence and to allow for a more targeted approach to consenting where the skills of the LBP could be given greater reliance.” However, Mr Florence believes more could have been done to reinforce the way builder licensing is implemented and maintained.

Certified Builders believes these proposed modifications do not go far enough and that this is a missed opportunity. “As we outlined to the Minister of Building and Housing, Hon Nick Smith, in our briefing to the incoming Minister late last year, we recommend strengthening the licensing framework further by raising the requirements for minimum skill levels and the maintenance of skills, and strengthening the consequences of non-compliance. “The licensing framework could also be strengthened by a Government-led initiative to create a standardised training pathway – linked to the licensing regime – for builders to grow their business acumen and skills beyond that provided by apprentice training and some subsequent industry technical postgraduate regimes.” It’s a view reinforced by his Master Builders’ counterpart, David Kelly, who says it’s time for a review into how the scheme is working and what adjustments need to be made. “This is not just a tweaking of points and learning outcomes. It needs to be a thorough independent review within the context of all of the other changes that are going on in the sector,” Mr Kelly says. 3

SPECIAL FEATURE

Registered Master Builders’ Chief Executive David Kelly says that anecdotal evidence Master Builders have received from Building Control Authorities suggest the LBP scheme hasn’t given them confidence that they can change their approach to the consenting process.

the respective ‘two-yearly continued licencing requirement’.

LBP SCHEME

Skills maintenance requirements to change The Ministry of Business, Innovation and Employment (MBIE) has completed its review of the LBP skills maintenance scheme and as a result identified where a number of improvements can be made to the existing framework.

SPECIAL FEATURE

The current scheme requires LBPs to earn a set number of points in order to retain their licence, much of which relies on self-directed learning on the LBP’s part. This system has been in place since the scheme’s inception albeit with some slight adjustments over time. The review found that there are some credibility issues with the current scheme, including some LBPs doing activities that are not relevant to their licence class in order to earn the required number of points.. The new framework seeks to move away from an entirely points-based system in favour of a new ‘mixed-model’ approach with the aim of being more meaningful and relevant across all seven licence classes. This approach will combine compulsary and elective activities, of which reading LBP News and completing on-thejob learning will be necessary components. For example, designers should look to exploit occasions where they have used an innovative or new design method while trade-based LBPs could cite the use of a new construction method or product by capturing this learning in their respective certificate or record of work. LBPs will carry on doing a range of elective activities although the amount of time spent doing these activities will reduce by half. The time spent upskilling will remain largely the same as it is currently. However, one of the primary objectives of the new model is to make LBP learning material more accessible. Hence the advent of LBP News and seizing opportunities for on-the-job learning. The new scheme can be implemented under the existing LBP Rules so no legislative change has been necessary. MBIE will road-test the new scheme during the first half of this year, so that any issues are resolved before LBPs are required to transition from 2 November 2015.

Further information on the new scheme will be published in upcoming editions of Codewords and in other trade publications in coming months. MBIE staff will also support the roll-out of the new scheme later in the year by partnering with building merchants and trade associations.

What do I need to take on board now? • LBPs will be required to transition into the new scheme on the date of their next two-yearly skills maintenance anniversary that follows 2 November 2015. • The new scheme does not introduce any new activities, it simply makes two existing activities compulsory, namely on-the-job learning and reading the Codewords.

What are the perceived benefits of the new scheme? • It is based on other successful skills maintenance models and will prove more meaningful over coming years. • The mixed model approach means LBPs will no longer be responsible for sourcing all their skills maintenance material as is currently the case. • A 50% elective component still remains in place so LBPs can still gain points from attending seminars, conferences, reading industry publications and attending workplace safety training and the like which are relevant or of interest to them. • On-the-job learning will feature as a mandatory requirement so the everyday work activities can be captured and used for skills maintenance.

What do I have to do from here? More information will be provided over the coming months and remember it’s not about the points, it’s about quality learning outcomes that will ensure you are up-to-date and current in your building knowledge.

PROFILE

Collaboration and partnerships Auckland builder Scott Blakelock of Early Bird Construction got his LBP licence five months ago. An experienced builder, Scott gained an apprenticeship soon after leaving school and has been building for 18 years. He had a spell in project management but returned to the tools last year. His rapidly-growing business, which comprises a team of seven, specialises in renovations and additions in central Auckland. Scott believes the LBP system is a step in the right direction. “It’s important to have some consistency across the industry and be accountable.” Scott would like to see the general public become more informed about the licensing scheme and about what it means to employ qualified tradespeople. He knows of some horror stories within the industry and says the LBP programme helps to protect both parties; the builder and the client. Scott’s attended several Building Hub workshops, which he describes as informative and worth the effort of attending. The Hub seminars keep him updated on new council and government regulations, new products and the latest information. Mitre 10 MEGA Glenfield is holding its LBP Building Hub seminars this month. The trade team attends seminars and training side-by-side with builders. “This industry is all about collaboration and partnerships. We’re building strong relationships with our trade customers,” says

Simon Burden, General Manager Trade Sales, Grove Group of Mitre 10 stores. Simon co-ordinates and manages a sales force that operates out of three stores; Mitre 10 MEGA Glenfield, Mitre 10 Onehunga and Mitre 10 Browns Bay. He says the main thrust is to focus on increasing the work of their sales force, as well as working consistently as one big team. “Our aim is to work smarter. The team is very driven and committed. We’ve recruited well and have four trade reps – two out of Mitre 10 MEGA Glenfield and two out of Mitre 10 Onehunga – plus extra resources in areas such as trade support and despatch.” The acquisition of a new truck with a truck-mounted crane in April has not only enhanced the capabilities of the three stores, but has given the business more exposure on site and raised its profile. “It’s very capable and designed for long and heavy lifts,” explains Simon, who, as an active, hands-on manager is often on site himself. “Builders like to know the person who is manages the Reps. It shows we care.” Mitre 10 MEGA Glenfield is successfully extending its arm into commercial construction, with one of their recent projects partnering with Amstar Construction Ltd on a new gym at Westlake Boys High School, a job Simon says marks a real milestone for the business. “We’re doing well – it’s a growth area,” he says, adding that he’s working hard to see significantly more commercial construction come their way. 5

PROFILE Chancellor strikes winning formula Wayne Zeng

With the establishment of Chancellor Construction, Wayne had two objectives: to achieve professionalism and efficiency, with a view to diversification in the future. “I aimed to expand the company’s portfolio so we were not just building spec homes,” he explains. Chancellor Construction is currently involved in Housing NZ projects in Glen Innes, has commercial contracts in Albany, and is partnering with Ebert Construction to build 300 apartments, also in Albany. In addition, there are domestic housing projects in Flatbush, Redoubt Ridge and Riverhead. Hard work, business savvy and partnering with key people, including contractors and suppliers, are keys to Wayne’s success. He’s discerning about who Chancellor partners with. Wayne chose Mitre 10 from the outset and regards them as a business partner. Both parties actively invest in strengthening their relationship. “We are constantly improving and enhancing our relationship,” he says. When new staff join the company, Wayne takes everyone over to meet the Mitre 10 MEGA Botany trade team.

Originally from southern China, thirty-three year old Wayne Zeng long envisioned a career as a building project manager in New Zealand. Holding fast to his goal, Wayne graduated with a B.Com from Canterbury University and a Masters of Business Administration from Auckland University. He spent over eight years in the banking industry and worked as an area manager for Westpac before joining the building industry. Wayne’s business and engineering studies, combined his banking experience, stood him in good stead when he set up Chancellor Construction two years ago. The rapid growth of his Auckland-wide business bears testimony to his undeviating vision and diverse abilities. 6

“And vice versa. We also get to meet the store’s new members.” Twice a week scheduled meetings are held with Patrick McNeely, General Manager Commercial for Mitre 10 MEGA Henderson and Mitre 10 MEGA Botany, and Account Manager, Paul Cox. “Communication is paramount,” says Wayne. “You’re only as good as your extended team.” He finds the Mitre 10 approach helpful and professional, and is the reason why he opted for them. The store is quick to solve problems when they arise. Last year Patrick McNeely was awarded the ‘Chancellor Fire Fighter of the Year’ due to his ability to deal with things expediently. “The team at Mitre 10 respect and familiarise themselves with the way we do business. This is a very multi-cultural industry and they understand what our key goals are.” Wayne’s vision is clear: to grow Chancellor Construction organically and to manage risk. There is a big emphasis on

PROFILE quality; all projects come with a 10 year Master Builders warranty. He believes a good project should have three goals; quality control, cost management and speed of delivery. “We strive to have good management discipline in place to ensure each project is balanced with these key elements.”

Wayne Zeng (left) and Patrick McNeely

Priding itself on building superior, high calibre homes, the company has developed a reliable trade network and uses only quality and trustworthy suppliers for all exterior and interior fixtures and fittings. Mitre 10 is the preferred supplier for frames, trusses and a range of other materials. Through strong supplier relationships, quality tradesmen and good ethics, Chancellor Construction has developed a winning formula.

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MiniMising Fasteners popping ‘Popping’ describes the protrusion of fastener heads through the finished surface of plasterboard. Popping may not become visible for some considerable period after completion. They may be just sitting there hidden under the paint until something like a door is slammed or the house moves slightly. Winstone Wallboards has prepared best practice guidelines to help minimise the most common occurrences of popping, including: • Understanding the process of timber shrinkage; with an illustration showing the effect of fasteners popping when timber dries. • • •

The importance of allowing adequate drying time and some key considerations for installation during the winter months. Correct fasteners, straight framing and correct installation. Tips on repairing popping and a recommendation for the best time to conduct repairs.

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Download your copy at gib.co.nz/install or via Download your copy gib.co.nz/install or via the online library, usingatthe keyword ‘popping’. the online library, using the keyword ‘popping’.

BRANZ

Windows can now star By John Burgess, BRANZ Sustainability Scientist

To be endorsed with the ENERGY STAR® logo, a window must also: • comply with ENERGY STAR for windows – Specification criteria for windows • meet the durability, structural, weathertightness, safety and thermal requirements of the New Zealand Building Code • be independently verified. BRANZ has also worked with the Window Association of New Zealand (WANZ) to show how their members’ products can comply with these EECA requirements.

New Zealand windows are now on the list of products that can be evaluated for an ENERGY STAR®, thanks to help from BRANZ. This gives assurance to those wanting windows with superior thermal performance. ENERGY STAR® is the leading international standard for energyefficient consumer products, allowing products with superior energy efficiency to be identified across a range of categories. The blue ENERGY STAR® logo helps industry and consumers to identify qualified products and make informed choices in selecting energy-efficient products that reduce energy usage.

Windows get with the programme In New Zealand, the Energy Efficiency and Conservation Authority (EECA) operates the ENERGY STAR® programme. This has 19 different product categories, including whiteware and electronic equipment. On 20 October 2014, windows for New Zealand housing were included as a new product category.

Energy efficiency of windows Windows in housing don’t directly use energy in the same way a television uses energy to operate. However, they are responsible for the loss and gain of space heating and cooling energy.

This resulted in the launch of the window industry’s Window Energy Efficiency Rating Scheme (WEERS) (see Build 140, pages 72–73). This service is not available to non-WANZ members. However, BRANZ has developed an assessment for non-WANZ members’ windows to see if they meet the ENERGY STAR® requirements, as set out by EECA.

ENERGY STAR® window requirements All windows used in New Zealand homes must meet the Building Code requirements, and this is a mandatory step in complying with ENERGY STAR®. BRANZ has tools to check that the thermal performance of windows exceed an R-value of 0.32 m²K/W and can also provide the independent verification necessary. This method allows windows with uPVC, timber, fibreglass, steel or aluminium frames to be assessed against the ENERGY STAR® criteria. Consequently, a BRANZ assessment means that any supplier of domestic windows in New Zealand can access the ENERGY STAR® endorsement label provided by EECA. The ENERGY STAR® endorsement means window manufacturers, suppliers and consumers can have confidence that qualified products meet an independent standard of superior thermal performance.

Use of the standard

As this energy flow can be optimised by careful design and material selection, energy-efficient windows for housing are now included as a product category of ENERGY STAR®.

ENERGY STAR® is widely recognised in New Zealand and is an easy way for window manufacturers, suppliers and consumers to identify higher-performing energy-efficient windows.

Obtaining an endorsement

Based on BRANZ research, it is available to all new windows designed for housing in New Zealand.

Before any product category is included in the ENERGY STAR® programme, its energy use and operation must be well understood, and it must be fit for purpose. BRANZ undertook research for EECA to assist the launch of the programme for windows.

For more For details on ENERGY STAR®- qualified windows, visit www.eeca.govt.nz/resource/energy-star-windowspecification. For verification services, contact BRANZ at window.test@branz.org.nz. 9

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EGAL LH&S penalties on the rise By Robin Penney Most readers will know that the most significant reform of workplace health and safety in 20 years is underway. However, many will not be aware that, even though the Health and Safety Reform Bill is not yet law, several changes are already in place, including: an increase in reparation orders, higher fines and a more enthusiastic regulator. This means that organisations will pay higher penalties more often if they don’t take their health and safety duties seriously. Here we take a look at these changes and what they might mean to your business.

Increase in Reparation Orders – The ACC “top-up” When an organisation is guilty of a breach of the Health and Safety in Employment Act, the courts can make reparation orders which are sums of money to compensate the victim(s) of a breach. Due to a recent change in the law, the courts can now increase (top-up) reparation orders to include the difference between a victim’s losses and their ACC compensation (which is capped at 80% of their loss). They can also account for payments such as medical bills and other detriments to a victim’s lifestyle. These top-ups will have a notable impact on health and safety prosecutions as there have already been significant reparation orders made for workplace injuries and the top-up is likely to mean a further increase to reparations. For instance, if an employee is off work for a long period of time as a result of a health and safety offence, top-up payments could end up being a substantial burden on the employer. Organisations typically take out statutory liability insurance to cover expenses such as reparation payments. Allowing for the cost of making reparations is central to an organisation’s risk

Robin Penney Robin Penney is a solicitor in Meredith Connell’s commercial group, with broad experience in all aspects of health and safety law.

management. It is important for organisations to ensure their insurance policies account for the new legal exposure.

Fines – increased fines for large organisations Similarly to reparation orders, when an organisation breaches the Health and Safety in Employment Act the courts also issue fines. It is illegal to attempt to obtain insurance against such fines, and recent cases show how the courts intend for fines to bite. In May 2014, Briscoes pleaded guilty after a customer injured his hip and broke his thigh at a Briscoes store. The customer had tripped over a box of display goods left on the floor in an aisle. The Court fined Briscoes $75,000 and ordered $4,000 in reparations. Briscoes appealed, claiming that the fine was excessive. The High Court ultimately decided to raise the starting point of the fine by 20% to reflect Briscoes’ large size, profits and profile. The Briscoes case serves as a stark warning to large organisations as the uplift suggests that courts will act to prevent large organisations from viewing fines as mere fees; they intend for them to have real teeth. It should also be kept in mind that health and safety fines will increase under the Health and Safety Reform Bill which envisages dramatically increased maximum fines of up to $3,000,000 in some cases.

WorkSafe NZ – The new Health and Safety regulator WorkSafe NZ is already established as the new independent health and safety regulator. Its central tasks are the promotion of good practice and the prosecution of those who fall below the legal standard. WorkSafe has an ambitious mandate to make a 25% reduction in workplace deaths by 2020. To achieve this it has: adopted a proactive approach, been provided with more funding, and is soon to have more enforcement powers. This means that organisations can expect more frequent visits from inspectors and potentially more enforcement action. This is especially so for high-risk industries such as construction and agriculture.

Conclusions Organisations should review and update their approach to health and safety in response to the changes outlined above and in anticipation of the imminent reform. This should include reviewing insurance arrangements to ensure that they provide adequate cover and also assessing current compliance gaps. Prevention is the best way to avoid prosecution and its consequences.

TRADE COACH

Selling for non-salesmen Selling is defined as: “a transaction that adds value to the buyer by meeting their needs and results in mutual benefit for the seller and buyer”. This sounds like a rather simple process, but is actually very complex and demanding. The more money at stake, the more complex and risky the sales process is (for both parties). To help guide you, there are fundamental principles to selling that can make the sales process effective and rewarding for both buyer and seller. These include: • • • • • •

Believe in what you do; Be enthusiastic; Build trust through honesty and integrity; Have a multi-stage sales process and follow it; Think like your prospect, not as a seller; Be prepared to qualify prospects OUT of your sales process.

If you are not excited about what you can do for your clients to improve their lives and cannot show this excitement in your communication process, then either consider getting another job, or hiring someone who can. Also, if a reason that you can’t get excited about your business is that your level of service and quality sucks, then fix that first. Fix errors and make it a part of your business culture that quality and service are absolutely non-negotiable essentials in they way you operate. Make sure all your team knows this and commits to delivering on this. This can be as simple as returning phone calls on the same day.

Andy Burrows Andy Burrows has been a professional business advisor, mentor and coach since 2006. He specialises in working with the owners of constructionrelated businesses to build systems and profitability into their operations.

A big part of sales is a transfer of enthusiasm from you to your prospective client and engaging their emotions. This is particularly so with residential clients. Not so much with commercial, but still important to be positive and demonstrate there is a ‘spark’ in how you go about things.

Build trust The primary purpose of your marketing and the early stages of your sales process is to increase the level of trust from the prospect. People have often heard horror stories from friends and families about building projects that have gone wrong, cost more than expected or have generally been an unpleasant experience. Michael Stone (author and business consultant to the US construction trade – markupandprofit.com) talks about the three greatest fears that a prospective client has. They are: 1. Will you do the job I want you to do? 2. Will you do the job at a fair price? 3. Will you do the job in a timely manner? Your job is to consider these fears in your sales process and ensure you alleviate them. One way is to actually raise the questions yourself during discussions and then answer them in a way that puts your company in a positive light. This trust building process is also important for two main reasons: 1. I t is much cheaper and less time-consuming to put more effort into the initial stages of the sales process than spend long nights working on quotes; 2. It allows you to achieve a premium price. There is a simple formula to follow that will help you systemise the trust building process. Credibility + Reliablity + Intimacy Trust = Self-Orientation Working on increasing the top line of the formula, while decreasing the bottom line, will help to maximise the trust that a prospective client has in you and will help make your sales process more natural and successful. For a guide on practical ways to work on improving the trust equation and building a trust-based sales system in your business, contact me at andy@tradescoach.co.nz and I will send it to you 13

BCITO

Got A Trade? Got it made! GOT A TRADE week 2015 is being held from 21-28 August and is part of a nationwide campaign to raise awareness of workplace qualifications among jobseekers, their teachers and parents. New Zealand needs skilled tradespeople. The 2014 Talent Shortage Survey, produced by Manpower Group, shows that engineers, technicians and skilled trades feature among ‘the top-5 jobs employers have difficulty filling’ across Asia-Pacific. Globally, skilled trades are the highest in demand. GOT A TRADE WEEK 2015 aims to enhance public perception of training and career prospects in New Zealand’s service and trade industries by getting up close and personal with modernday apprentices and trainees and the companies that employ them. Their stories will inspire and seed conversations at home, at school and in the workplace. Here’s just one of the stories that BCITO will share as part of the campaign:

Carpentry apprentice, Cody Webby’s got it made

Cody Webby is well on his way to becoming a fully qualified builder. At only 21 he’s in the final year of his carpentry apprenticeship with BCITO. Cody left school when he was 16. Being a hands-on type of guy and a keen outdoorsman, Cody decided to look into building and construction as a possible career path. Through BCITO’s dedicated job-matching service Cody got in touch with his current employer, Licensed Renovations. Two weeks later he was on the tools. “I’m really glad I started so young, straight from school. Now I’m 21 and I’m nearly qualified, I couldn’t be any happy than where I am now”. Earning a wage while learning on-the-job has enabled Cody to have a great work-life balance. “Compared to some of my friends who left school and continued with further study, there’s a huge financial difference. I’m so much better off than them,” says Cody. “I’ve been able to buy the tools I need to do my job and buy some of the ‘toys’ I’ve always dreamed of having. Pretty soon I’ll have enough savings for a deposit on my first house.” “It’s an awesome feeling when you know you’re getting somewhere in life and it’s not going to take till your mid-30’s to get there, I’ve started young and I’m going to make it young.”

“It’s an awesome feeling when you know you’re getting somewhere in life.”

GOT A TRADE WEEK 2015 brings to life the needs and aspirations of young New Zealanders trying to find where they fit in the world. It will also show the sense of pride that comes from acquiring new skills and qualifications on-thejob. A comprehensive digital strategy will be supported by an official launch, as well as targeted advertising, media coverage and direct marketing. The inaugural GOT A TRADE WEEK 2015 is a national programme of public and media events that celebrate the talent and achievements of trade apprentices and trainees. Launched at the 2014 Careers Expo, the GOT A TRADE? 14

GOT IT MADE campaign is the collaborative brainchild of seven Industry Training Organisations – (BCITO, Competenz, Connexis, HITO, MITO, Service IQ and The Skills Organisation). As part of GOT A TRADE WEEK 2015, the BCITO Got a Trade Day is on Thursday 27 August when BCITO’s 14 regional teams will be joining with local industry and employers, to host career seekers at a number of construction related facilities and locations. Visit gotatradegotitmade.co.nz to find out more. #GOTATRADE

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STORE NEWS

Celebrating worksite safety Andrew Sherriff (Mitre10 MEGA Invercargill Account Manager) presents Calder Stewart’s Construction Manager, Lindsay Bowmar, with a plaque celebrating 1000 days LTI-free.

joined by Alison Spriggs (Key Account Trade Support), Zane Eyre (Account Manager) and delivery driver Barry Ross, who came in on his day off to acknowledge this fantastic effort. Andrew also presented Lindsay Bowmar, Calder Stewart’s Construction Manager, with a plaque to commemorate this achievement.

Members of the Mitre 10 MEGA Invercargill trade team were recently asked to join staff from commercial construction company Calder Stewart in celebrating 1000 days free of Lost Time Injury (LTI). The occasion was marked by a lunch, featuring one of Mitre 10 MEGA Invercargill’s renowned BBQs for 38 Calder Stewart managers, employees and contractors, where Mitre 10 MEGA Invercargill’s Account Manager, Andrew Sherriff, was

Mr Bowmar acknowledged the effort his staff had put into reaching the milestone: “Calder Stewart have invested heavily in improving our H&S with four full time H & S employees, first rate equipment and all the necessary courses as we come aware of them “That said it is you guys (the employees) that control the health and safety on each of our sites on a day-to-day basis”. It is a great effort by Lindsay and his teams to reach 1000 days LTI-free. He is looking forward to celebrating 2000 days in January 2018 and Andrew says the Mitre 10 MEGA Invercargill plans to be plan to be there for that as well.

Invercargill tradie a winner Invercargill tradesman Murray Greene walked out of Mitre 10 MEGA Invercargill recently with a brand new Makita screw gun after winning a James Hardie promotion. Murray purchased some James Hardie products through the store in March and went into the draw to win the Makita tool, which he says he was “stoked to win” and was looking forward to trying out. Zane Eyre, Mitre 10 MEGA Invercargill Account Manager, presents Murray Green with his new Makita screw gun 1616

RMBA CONFERENCE RMBA conference – a special invitation The Registered Master Builders Association is holding it’s 115th annual conference in Hamilton from July 2-4 and, for the first time, is holding a session that will be open to non Master Builder member Licensed Building Practitioners. The conference, to be held at the Claudelands Conference and Exhibition Centre, is themed in honour of the worldwide commemoration of 100 years since the Gallipoli landings. The special half-day session, being held from 8am-1.30pm on Friday July 3, will feature Victoria Cross winner Willie Apiata as the guest speaker. Also speaking to the attendees will be RMBA President John Macdonald, who will welcome everyone to the session, and Hon Dr Nick Smith, the Minister for Building & Construction. Later in the morning, attendees have the choice of attending one of two workshops, each of which carries 1.5 Skills Maintenance Points. One session – “Playing the Building Act Game” - focuses on the residential/volume building market and will be led by trainer and building industry consultant Rosemary Killip. Willie Apiata

Rosemary Killip

It will cover topics such as keeping your LBPs registered, building inspections and inspectors, creating a template for producer statements, testing key staff’s knowledge and creating training plans. The second session is aimed at the commercial sector and will cover two topics. The first is “Quality Construction Management” hosted by the Managing Director at Build iQ, Esther Newman, This session will focus on the specified requirements of a Quality Assurance System as a means to provide a Building Consent Authority with the confidence that buildings are designed, built, and will perform to regulatory requirements. The second topic in this session - “Lean Thinking” - will be led by business consultant Brian Travers and will aim to seriously challenge the conventional definitions of waste and value in the construction industry. It is designed to inspire attendees to recognise the contribution the LEAN methodologies could make in the building and construction industry.

Esther Newman

Brian Travers

SITE SAFETY

We need to talk It’s probably the best thing on your worksite, everyone can use it, but many do not. It can increase productivity and reduce health and safety issues on the site. It’s a toolbox talk. Toolbox meetings are short briefings held on site with your team. Here workers have the opportunity to have their say about health and safety, the work programme and how the job is tracking. Don’t be put off the idea of rounding the team up for a toolbox talk, it’s really not hard. Toolbox meetings should be run on a regular basis for 10-15 minutes. A weekly or fortnightly meeting is often suitable, however if you are involved in a big project with new workers coming on site regularly then you might want to increase the frequency to daily. Here is your guide on how to run a toolbox meeting:

• Discuss/review accident and incident data • Discuss the work programme for the day/week ahead • Have company leaders talk about the business direction or a particular topic • Discuss any new equipment on site • Provide a short training session (Site Safe provides exclusive toolbox talk topics to its members for upskilling and informing workers).

4. Close the meeting Thank the team for their time and let them get to work.

5. Record meeting notes Details of meetings should be recorded and kept on file. Record meeting dates, attendees and discussion items. Show follow-up items from previous hazards, accidents and incidents.

1. Schedule the meeting

Site Safe has a free downloadable toolbox meeting template that can be found at www.sitesafe.org.nz/toolboxtalks

Let the team know where and when the meeting is. At the start of the day works best with most workplaces.

Now for the serious bit about the law.

2. S et the scene for the meeting — keep it real and be positive Encourage everyone to join in and provide their own feedback, knowledge and experiences. Use simple language for everyone to understand to convey the key health and safety messages. Toolbox meetings are an opportunity to provide positive feedback for safe actions, hard work and initiatives. It’s also important to avoid criticism and acknowledge everyone for their contributions. The meeting shouldn’t be a lecture, but a chance for engagement with the team. Ensure that running and attending toolbox safety meetings is recognised as an important part of a person’s role. If the worker regards health and safety as an add-on, it will often be neglected.

3. Follow an agenda Follow an agenda to make sure you cover everything off: • Inform workers of changes to company procedures • Identify new hazards and review existing hazards • Develop/review hazard controls

The Health and Safety in Employment Act 1992 places duties on employers to provide their staff with opportunities to participate in safety activities. The new health and safety law is set to come into effect later this year. This law looks set to ensure employers show an increased emphasis on engaging with employees in the workplace. Toolbox meetings are a good way to engage with workers and work towards fulfilling an employer’s obligations to their workers.

Site Safe NZ Inc is a not for profit, membership based organisation, that promotes a culture of safety in the New Zealand construction and related industries. For more information about Site Safe NZ Inc, our products and services, or to speak to a Safety Advisor, contact us on 0800 SITE SAFE or visit www.sitesafe.org.nz.

BUSINESS Working backwards

In last month’s article I talked about building your successful business as if it were a “paint by numbers” exercise.

Firstly, figure out who you want to have as customers. Maybe not every sale is a good one. Spend some time working out who the ideal customer is and then get in front of them. Work out where they swim and make sure you’re in the same water.

One of the important points raised was the ability to close the sale.

Then ask the target customer this question. “I would really love to have you as a customer. What ‘s it going to take?” It’s a simple, yet powerful question!

All business people understand the importance of making sales and the impact that has on their cash and profits. Yet, so often, they have a hopeful, almost wishful approach to this key part of their business. As New Zealanders, we don’t like being too overt. That often reflects on our approach to winning customers as well. Being pushy simply isn’t in our nature as the seller (or the buyer for that matter).

But let me tackle this problem a different way. Most Kiwi business owners offer their products and services out to potential customers like they are fishing. They choose what they consider to be good bait and dangle their line out hoping to get a bite. It’s a case of “here’s my product come and get it; I’ve told you about it and maybe you will swim past and it will look attractive enough for you to eat.” But, as we all know with communication, what we often think has been said is not what was heard. Marketing products and services is the same. We can spend oodles of money on marketing our product, using the coolest creative advertising and yet it fails to register a response in the target customers’ mind. Why? Because we haven’t communicated with them! We haven’t made the link. Here’s what we do at RightWay and what we encourage our business customers to do to win their customers.

The reason it’s powerful is that you can now get the information you need to help do what it takes to win that customer. Do they have a concern around price? If so, then you now know. You can choose whether you wish to negotiate. If it’s not price, then what is it? Great products and services are rarely sold and a customer rarely won on price. For example does the customer (when you get to the nub of the issue) really want a key aspect of the product or service? Do they need to try something out? Can you give a money back guarantee? Is it an emotional purchase? Are you helping them fix or remove a problem? To sell you must truly satisfy your customer’s desire for a solution. You’ll never really know what that is unless you ask them. So here it is. It’s that simple. Work backwards by first asking your customer what it will take to win their business. Keep stepping back from there to make it happen.

Fight the good fight this week. Greg Sheehan is the CEO of RightWay, a team of chartered accountants/business advisors who are straight-up, super-knowledgeable and 100% behind grassroots Kiwi businesses. For more, go to rightway.co.nz

APPRENTICE

The benefits of the BCITO system When I first opened my theory books from BCITO I was a little overwhelmed by how much work I had to do. The system works like this. You have two boxes of books. One is a box of folders and books with detailed information on all the aspects of building we are expected to know. The other is a set of booklets broken up into small sections called unit standards. Within each unit standard is a few pages of questions to answer. You can reference back to your folders for any information you’re not sure about for the answers, but the training advisor will drill you verbally when he comes to catch up on the work you’ve been doing, so just copying from the book won’t work. If he’s satisfied that you know your stuff, he’ll sign you off on the unit. If not, you’ll have to give it another go next time. Your boss also has to sign you off on your ability to actually do the unit practically. It’s a great system because you can complete any standard you like at any time. For example, we were due to start interior lining, so I read all the resources BCITO had provided me with over the weekend and when we got into the practical side I got to put my theory study to work. Once we had finished I went back to my unit standard and filled in all the questions, referencing to the folders when I needed to. Everyone has different learning styles and the system BCITO have in place is wonderful because it covers verbal, visual and practical. It also gives you the flexibility to complete your apprenticeship at your own pace and adapt it to suit your own style of learning. It’s so rewarding to look back at when I started 18 months ago and see how far I’ve come. I’ve been earning money, learning more than I could ever imagine and on my way to a well-paid career. I know exactly what I will be earning when I’m all signed off and I will have a job in a solid company. And, to top it all off, I won’t have any debts.

Georgie Young is a BCITO apprentice and works for Sheffield Construction on Waihake Island

BE IN

TO WIN

Email your answer to m10trade@mitre10.co.nz with the words ‘June competition’ in the subject line and you’ll go in the draw to win. You must include your photo, your name, company name, physical address, daytime phone number and the name of the store you hold an account with. All entries must be received by 5pm on Monday July 6th, 2015. Conditions of entry:

A MAKITA 18 VOLT NI-CAD CORDLESS DRILL/DRIVER

You may enter only once/ Prize(s) are as outlined. Prize(s) are nonrefundable, non-transferrable and not redeemable for cash. The winner(s) will be notified by phone or email. Employees of ReFocus Media Ltd Ltd, Mitre 10 (NZ) Ltd, suppliers of goods to Mitre 10 and their immediate families and agencies are not eligible to enter. By entering this contest, you consent to the use of your name in all matters related to this contest, including any advertising or publicity without further compensation. Results of this promotion will be published in a later issue of Mitre 10 In Trade magazine. Prices that may be quoted in this promotion were accurate recommended retail prices at the time of publication. ReFocus Media Ltd and Mitre 10 (NZ) Ltd accept no responsibility for any loss or damage incurred from the use of these products.

THIS PUBLICATION IS RECOGNISED BY THE BUILDING AND HOUSING GROUP AS CONTRIBUTING TOWARDS THE SKILLS MAINTENANCE REQUIREMENTS FOR THE LICENSED BUILDING PRACTITIONER SCHEME.

Answer the following question and go in the draw to win a Makita 13mm 18 volt Ni-Cad Drill/Driver worth $249. Question: How many different license classes are there in the LBP scheme?

If you are a Licensed Building Practitioner, cut out and safely retain this panel with your skills maintenance literature for future reference and audit confirmation. Ref. In Trade Vol 8, Issue 12 June 2015