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

APRIL 2015

BUILDING TRADE IN WELLINGTON REGION SUPPLIER PROFILE: MITEK NEW ZEALAND FACTS ABOUT SAFETY NETS LEGAL: TERMS OF TRADE BUILDING A COMPANY CULTURE

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 Wednesday April 1 – Thursday April 30, 2015 from participating stores.

FOREWORD In Trade Foreword This issue of In Trade marks a change of leadership from Andrew Cochrane. I’d like to thank Andrew for his contribution to Mitre 10 over the years and wish him well for the future. Taking over in the interim will be Adrian Moreton. Adrian has over 25 years’ experience and for a number of years has been one of our Regional Trade Development Managers. Adrian, along with our highly capable trade team, will carry on with business as usual, including maintaining our focus on providing the best service and growing our overall capability. Mitre 10 now has a strong foundation in place and we’re excited about what the future holds. Servicing the trade is an increasingly important part of our business. The local relationship between us and you, keeping you updated on the latest techniques, tools, and offers, and finally providing you with everything you need to get on with the job is what we are all about. I’d like to take this opportunity to thank you for your support.

Neil Cowie

Adrian Moreton

Chief Executive Officer Mitre 10 (New Zealand) Ltd

Acting General Manager Trade Mitre 10 (New Zealand) Ltd

CONTENTS 2

FEATURE

Mitre 10 MEGA Porirua, Petone and Upper Hutt

SUPPLIER PROFILE

MiTek New Zealand Ltd

LEGAL – MEREDITH CONNELL

Terms of Trade outline how you and your customer will conduct business together, laying out the rights and obligations of each party.

BRANZ

Safety nets

BUSINESS

RightWay Ltd

BCITO

Apprentices sign up

TRADES COACH

Developing company culture

Laurie Gallen and his trade teams at Mitre 10 MEGA Porirua, Petone and Upper Hutt have the best interest of their customers at heart.

Cover: Laurie Gallen (Trade Manager, Mitre 10 MEGA Porirua, Petone and Upper Hutt) and Stu Presling (SJP Construction)

With a history dating back more than 50 years in New Zealand, MiTek has forged a strong position within the building and construction industry.

The majority of resource consents contain a general condition, requiring them to be implemented in accordance with a range of information.

If you want to make more money than your competitors then don’t just do the same old things; build a business model that works.

BCITO achieved another first for the construction industry by reaching 5000 apprentice sign-ups in 2014; an all-time record.

The culture that exists in a company can make or break it, so it is important to make sure the right culture is proactively developed.

STORE NEWS

Brian Farrell retires

APPRENTICE

Being a lady tradie

THE BACK PAGE

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

Martins Mitre 10 Westport is regrouping after the retirement of long-standing Trade Manager Brian Farrell, who has faithfully served the company for 28 years.

Georgie Young remembers back to her first days as a building apprentice, then thinks about some of the unique challenges she faces as a female on site.

Volume 8, Issue 10 April 2015 Mitre 10 In Trade magazine is published 12 times a year in association with Mitre 10.

Managing Editor

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

Contributors

Adrienne Jervis Simon Rickit – Meredith Connell BRANZ BCITO RightWay Ltd Andy Burrows – Trades Coach New Zealand Institute of Building Surveyors

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.

PROFILE Expanding trade in Wellington region

Laurie Gallen (Trade Manager, Mitre 10 MEGA Porirua, Petone and Upper Hutt and Stu Presling (SJP Construction)

Laurie Gallen and his trade teams at Mitre 10 MEGA Porirua, Petone and Upper Hutt avoid having the “no” word in their vocabulary. “We have an attitude that says yes. Yes we can!” states the Trade Manager for the three stores owned by Martyn and Joanne Lockyer. Laurie and his team pull out all the stops to do what they say they are going to do. “We have people who believe in the company,” says Laurie, who joined Mitre 10 two years ago and has a deep respect for the company’s ethics. The teams not only strive to walk the talk, they offer sound advice and think outside the square. The Wellington born-and-bred Trade Manager has a 30 year history in the industry, across a variety of trade focused organisations. He has developed a large number of contacts and has built lasting relationships through the years. A good rapport has been built, particularly in the commercial trade sector where Laurie spent a great deal of time. 2

Now tasked with expanding Mitre 10’s trade business in Wellington, Laurie works with three trade teams, including Porirua, which was added to the Mitre 10 MEGA stable in December 2013. “We’re trying to grow our market share and, to help achieve this, we’ve extended our sales force, as well as the key support staff in-store to handle the increasing level of customers.” Through Laurie and the sales team, the business has been successful in attracting new customers, including a number of established local commercial clients. The service level is a big attraction. “We pride ourselves on our service. A lot of merchants can provide the same product and similar pricing, but we go the extra distance with service. Central to this growth has been the fact that we have everything under one roof. Our customers love that we are able to have all our building materials under cover.” Laurie has quickly established a dynamic new sales team that has a good mix of experience and enthusiasm.

PROFILE “Central to this growth has been the fact that we have everything under one roof. Our customers love that we are able to have all our building materials under cover.” says Laurie “All the team have established trade relationships; customers are not just seeing new boys on the block. They have capacity to do what we say we are going to do. They don’t talk hot air,” says Laurie. Long-standing Sales Rep John Harland, for instance, is wellknown in the industry. John has history in the Wellington trade scene and provides a solid base for the sales team to draw on. Of the four new reps, three have come from the trade industry and the other is learning about the industry really quickly. Importantly, they are all gelling well with customers. Being the Trade Manager responsible for Mitre 10 MEGA Porirua, Petone and Upper Hutt requires Laurie to deal with three different stores and a range of different people. Each store has its unique features and personality, with Petone being the most established of the three. Laurie says it takes solid organisation to ensure the three stores provide a consistent, high level of service to our trade customers. The addition of the Mitre 10 MEGA Porirua store has meant that Mitre 10 now has a very strong trade offer across the Wellington area. “We can now offer our customers the convenience of using their account at any one of three locations, this means less time off the job site – a key consideration in today’s environment” When Mitre 10 MEGA Porirua store opened nearly 18 months ago, Stuart Presling of SJP Construction decided to give Mitre 10 a go. Stu and his wife Ally started SJP Construction in 2005 after returning from an extensive working holiday in the UK and Australia. Over this time, they had the opportunity to connect with some very experienced people in property and development who motivated them to go out and create their own future in the building industry. “It has taken us the last 10 years to refine our business, define our focus and bring the work and our team of builders together,” says Stu. SJP Construction specializes in creating a turn-key product in the local market. The company selects its sites, designs homes, runs all council and sub-divisional elements, and constructs the full project, including landscaping and interior design.

The team is currently completing two townhouses in Whitby. A further three projects are at the planning and design stage, which is run by Ally. Ally’s background in property law, along with her eye for design and practicality, brings another skill set to the business. It also offers her a challenge and a creative outlet from the busy role as a mother their four small children. Stu comes from an active, motivated farming family. After deciding that university wasn’t going to be his calling, he looked for tech skills that would offer versatility and open up opportunities. “I began my apprenticeship in 1995, working for a great Wellington building company that exposed me to high end, architectural design work in most of Wellington’s affluent areas.” One of his greatest achievements has been running a successful family business for the past 10 years. “Being able to work with my father and my wife every day has created unity and a very special bond and togetherness in our family. It’s a very special time. One day l know l will look back and feel very privileged to have had this time with my dad.” When looking for a quality supplier in the local Porirua market, the company came in contact with the Mitre 10 Trade Rep, who certainly did his job properly, according to Stu. “He brought us over soon after the business opened its doors in 2013. “Mitre 10 have taken a load of stress off us around product availability and service.” Stu believes the stores’ family influence, with the Lockyer family at the helm, thrive with the same level of professionalism his own team tries to uphold, making them feel they are working with similar minded suppliers. “The last 12 months have forged a very strong relationship with our business and Mitre 10, from Darren the Branch Manager, right through to the service staff.” With one of the SJP Construction team in the store almost daily, the company can honestly say that they always have an enjoyable experience. They even venture there for social occasions, not to mention the coffee and birthday cake! 3

SUPPLIER

World-class in New Zealand

SUPPLIER With a history dating back more than 50 years in New Zealand, MiTek has forged a strong position within the building and construction industry, and has a relationship with Mitre 10 stretching back more than 25 years. The company, which specializes in the design, manufacture and distribution of a range of timber connectors, structural brackets and truss & floor systems, began operation in New Zealand in 1967 as the Gang-Nail Group, and was subsequently rebranded in 2000 as MiTek New Zealand Ltd, a subsidiary of MiTek Industries Inc. based in the USA and associated with world-leading design software suppliers in 20 countries. Under the guidance of Managing Director Richard Poole, MiTek New Zealand Ltd distributes products under the MiTek®, Lumberlok® and Bowmac® brands, covering a number of areas of the building and construction industry in New Zealand. Other major influences on the business are Graham Hunt (Marketing and RegionL Manager), Tony Castledine (Hardware and Regional Manager) and Steve Coll (Research & Development and Regional Manager). The company has 70 staff in Auckland in manufacturing, distribution, customer support, engineering and software development roles plus another 11 in Christchurch, covering distribution, customer support and engineering. Graham says Lumberlok timber connectors and Bowmac structural brackets are both highly specified trade products ranges to suit B1 and B2 sections of the New Zealand Building Code, and are made available to the market through building merchants like Mitre 10. “We have supplied Mitre 10 stores in one capacity or another for more than 25 years,” he says. “As a New Zealand manufacturer, we are pleased to have had a long-standing supply relationship with many of the stores in the Mitre 10 group.” He says, that during this time, MiTek has seen those stores grow from retail-oriented businesses into those with a strong trade focus, which has seen an increased demand for specified structural products, such as those supplied by MiTek. “This is also a result of Code of Compliance requirements and the Licensed Building Practitioner regime,” he adds “Designers and builders demand certainty around structural products and structures. This has always been MiTek’s strength and as a result many stores benefit from stocking to service an increasingly trained and savvy building sector.”

He says the MiTek Truss System is independently owned, with 71 MiTek accredited plants currently operating within this framework, using MiTek-designed software for manufacturing Gang-Nail structural components. These plants service the highly engineered roof structure design business to the B1 of the NZ Building Code in combination with structural fixings. This part of the MiTek business has been in operation for close to 50 years in NZ, and has a similar track record internationally. Graham says the company is currently noticing an increased demand in Mitek New Zealand’s range of products, mainly due to a lift in building activity in Auckland, Christchurch and, to a lesser extent, the Waikato region. “Structural products sales are increasingly driven from specification when, somewhere, a building consent is raised,” he says. With much of MiTek’s increased product demand coming from the post-quake Christchurch rebuild, Graham says a number of new products have also been developed in accordance with the unique demands coming out of Canterbury. “We have developed several structural lines catering for the Christchurch residential market for both earthquake renovation and new builds. “Light timber framed buildings generally performed well in the environment, but there is scope for further product development, and MiTek’s way has always been first to market with new products,” he says. “We were aided by the fact that Christchurch is a strong distribution point for MiTek so our research and development effort is based on real local knowledge of the engineering issues. Our local manager’s house was structurally affected and he has become something of a ‘think tank’ for new ideas.” Graham points out that MiTek’s philosophies are based in strong engineering, code compliance and meeting the structural and specification requirements outlined by NZ Standards, the Building Code and other relevant legislation. “We also have modern manufacturing based on LEAN principles (waste reduction or elimination) and Kaizen (continuous improvement) and a DIFOTS (Delivery in Full on Time in Spec) in the high 90s,” he says. He says these are all aspects of the company which have assisted them in being named as Mitre 10’s Hardware Supplier of the Year for three years in a row.

LEGAL

Effective Terms of Trade By Simon Rickit

Terms of Trade are the terms of the contract between a seller of goods or services and the buyer. They outline how you and your customer will conduct business together, laying out the rights and obligations of each party. If things go wrong, they serve as a reference point for where you stand. Whether you are selling products, providing a service or operating an online business, Terms of Trade are essential. Here we provide a few important considerations for your Terms of Trade, including (a) how you can ensure they are binding, and (b) some important clauses to consider including. How can I ensure my Terms of Trade are binding on customers?

Incorporation of terms Your Terms of Trade will be of little help if they do not form part of your contract with your customer. If your Terms of Trade are not provided to your customers early on, they may attempt to argue that they were not aware of the Terms of Trade and therefore that they do not apply. Accordingly you should take steps to bring the Terms to the attention of your customer, and have your customer confirm their acceptance of the Terms, in order to avoid disputes down the track as to their enforceability. Should a dispute arise, there are various ways you can show your business has taken such steps and an enforceable contract exists between you and your customer.

Hard copy contracts To take an example, if you are in a business which extends credit to customers, you should incorporate your Terms of Trade in the initial credit application form provided to your customers. It will be difficult for customers to argue that the Terms of Trade do not apply if they have signed a credit application form incorporating the Terms. Further, taking this step will have the additional benefit of providing you with the opportunity to run reference checks on your customer before you agree to offer them credit. Another option would be to insert the Terms of Trade into a quote you provide to a customer. In any event, your Terms of Trade should be provided to your customers before you start providing goods or services to them, and you should require that your customers confirm their acceptance to the Terms - ideally by signing them. This gives you evidence that the customer is aware of and accepts your Terms of Trade before the contract begins. 6

Online Transactions A lot of businesses now generate customers and orders directly from their websites. In these situations, the contract with your customer is essentially created online, and so it is impractical to get customers to send in a signed copy of your Terms of Trade. It is therefore a good idea to ensure that a link to your Terms of Trade is displayed clearly on all relevant pages of your website. The website should also have a compulsory ‘tick’ button requiring customers to confirm they have read and accepted your Terms of Trade before any work commences.

Unfair contract terms Certain non-core terms in standard form consumer contracts may risk falling foul of the Unfair Contract Terms provisions recently inserted into the Fair Trading Act 1986, which come into force on the 17th of March. Terms of Trade will most likely be considered “standard form consumer contracts” under the legislation, so will be subject to these new provisions. A court has a discretion to declare certain clauses in your Terms of Trade “unfair”, rendering them unenforceable. For example, if your Terms give you the right to increase instalment payments due from the customer, without any corresponding right on the part of the customer to take any action in response (eg. terminate the contract), the resulting rights imbalance could well lead to a finding of unfairness. There are certain steps which you can take to ensure your Terms of Trade are not set aside in this way. You should present any potentially oppressive clauses in a transparent and obvious way. Your Terms should treat you and the customer reasonably similarly, except insofar as unequal treatment is necessary to protect your legitimate interests.

Clauses to consider including in your Terms of Trade Customer consent to certain business practices Common business practices such as marketing and credit checks require customer consent. One way to ensure you have your customers’ consent is through your Terms of Trade. For example, if you are thinking of sending out regular marketing emails to customers, you need to ensure you have your customers’ consent to do so. You can obtain this consent through your Terms of Trade by including a clause to this effect. Where you allow customers to buy goods/services from you on credit, you may need to carry out credit history checks on those customers. To run these checks, you will need to obtain consent from the customer, which can also be done through a clause in your Terms.

LEGAL Payment clauses In order to protect your cash flow, your Terms of Trade should specify clearly when payment is due so that your customer knows exactly when they will be liable to pay. You should also ensure that you have the right to charge interest on unpaid accounts in situations where a customer defaults on payment. Your Terms of Trade should also allow you to pass on any legal and debt-collection costs to the customer in full. The prospect of having to pay both interest and costs should motivate customers to meet the due date. Future legal claims – limitation of liability You may wish to specify in your Terms of Trade that your business cannot be held liable for any indirect losses, including loss of profits or consequential or economic losses. This would mean that, if a customer were to bring a successful claim, the customer would be able to claim only direct loss: in other words, the actual value of the goods or services provided and not any further costs or expenses incurred. Once you have an idea of how you may wish to limit your liability, it is crucial that you ensure that your limitation of liability clauses do not conflict with either the Fair Trading Act 1986 or the Consumer Guarantees Act 1993. The Consumer

Guarantees Act requires businesses to meet certain quality guarantees when they sell goods and services to consumers. A consumer is anyone who buys goods or services for personal or household use, which would include (for example) home renovation/repair . Where you are in the business of supplying goods/services to consumers, you cannot contract out of the provisions of the Consumer Guarantees Act, and an attempt to do so could be unlawful. In addition, limitation clauses are likely to be scrutinised particularly closely under the new Unfair Contract Terms legislation, considered above. You must be careful to ensure that any limitation of liability does not go further than is reasonably necessary to protect your legitimate interests.

Need Help? It is important to take the time to prepare clear and reasonable Terms of Trade to ensure your business risk is managed properly. Meredith Connell regularly advises on matters relating to Terms of Trade, commercial agreements and all aspects of business transactions. If you have any questions arising from this article, or any other commercial matters, please feel free to contact us.

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BRANZ

Facts about safety nets Growing awareness about improving site safety has seen a significant increase in the use of safety nets on building sites. Here are a few things to consider when selecting and installing nets. SAFETY NETS are installed below elevated work areas to reduce the distance a worker can fall. They are designed to progressively deflect or stretch – if a fall occurs, the net absorbs the impact and provides a soft landing, reducing the likelihood of injury (see Figure 1). The greater the height from which a person falls, the greater the impact. Nets must be able to deflect enough to absorb all the energy from a fall at the maximum fall height they are designed for. Clearance distance below the net The clearance distance is the distance below the net that must be clear of objects so that a person falling does not strike an obstacle or the ground while the net is deflecting.

Class A1 A2 B1 B2

Table 1: Classification of Safety Nets Energy Absorption Capacity Mesh Size 2.3kJ 60mm 2.3kJ 100mm 4.4kJ 60mm 4.4kJ 100mm

For residential construction, use a class B net with 4.4kJ energy absorption

Safety net components Safety nets consist of different types of ropes, including: • mesh ropes – a minimum of three separate strands of rope braided in such a way that they cannot unravel • border ropes – a continuous rope that is threaded through each mesh around the perimeter of the safety net • tie ropes – fasten the safety nets to structural elements and/ or anchor points on a structure • coupling ropes – join nets together when more than one net is needed to protect an area (see Figure 1).

Standards covering safety nets There are currently no New Zealand standards covering safety nets. WorkSafe New Zealand has published Best practice guidelines: Safe use of safety nets. This is available online and references the British/European Standard, BS EN 1263 Parts 1 and 2. Safety components, and installation of nets should comply with BS EN 1263 or equivalent. Knotted vs knotless nets Safety nets may be knotted or knotless in either a square (Q) or diamond (D) mesh arrangement. Knotted and knotless nets react somewhat differently under impact. When a load lands on a knotted net, the knots tighten near the impact. The tightening is permanent and reduces the amount of energy the net can absorb in future impacts. Knotless nets do not lose absorption capacity following an impact and they also tend to result in fewer facial or graze injuries when a person falls into them. Safety net classification BS EN 1263 classifies nets in two ways (see Table 1): • the maximum energy absorption capacity – how much energy a net can absorb, measured in kilojoules (kJ) – class A nets capacity is 2.3 kJ and class B nets is 4.4 kJ • the mesh size measured in millimetres – class 1 mesh size is 60 mm and class 2 is 100 mm. 8

Labels are a must All safety nets must have a permanently-attached label with information about the net, including: • the manufacturer’s name and code • date of manufacture • the class • mesh size • configuration • energy absorption capacity of the net • a unique identity or serial number (ID). If there is no label attached to a net or the label is not legible, the safety net must not be used.

BRANZ Removable test mesh Every safety net must be tested for UV deterioration at least once every 12 months. New safety nets should be supplied with at least three test meshes that are loosely woven into the net and can be removed one at a time for testing. Each test mesh must have the same ID number, be made from the same material, and be produced in the same batch as the net to which it is attached. A label showing that the net has been tested in the past 12 months and that it meets the manufacturer’s minimum energy absorption capacity must be displayed on every safety net. The test label is valid for 12 months and must not expire while a net is installed. Installing safety nets Safety nets may be attached either with tie ropes or karabiners to structural elements such as trusses, rafters and top plates, or to specifically designed anchor points on the structure being netted. They must not be attached to purlins, battens or nonstructural components such as gutter supports, pipework or electrical service installations. The recommended maximum spacing between fixing locations is 1.5–2 m. Fixing locations and anchor points to which safety nets are fastened must not have sharp edges that could damage or cause abrasions to any of the ropes. Nets must be easily accessible to carry out a rescue and to remove debris. They must not be used for storage, as a work platform, or for providing access to a work platform. Installer must be qualified Only an appropriately qualified person should install safety nets. They need a fall arrest safety equipment training (FASET) certification – the only recognised qualification for safety net installation. Rescue plan needed Before any work begins above safety nets, ensure there is a rescue plan detailing the procedure that will be followed if someone falls into a net. Any equipment required to carry out a rescue must be on site and available at all times. All workers on the site must know what the rescue plan is and their role in a rescue. If possible, a practice rescue should be carried out before starting work above the safety net.

Table 2: Frequency of safety net inspections Visual Inspections required By When the net is installed Installer Daily before use User Weekly Site supervisor After adverse weather Site supervisor • heat or friction damage to mesh • damage to stitching • damaged or deformed fittings • debris in the net • defective knots – if the net has knotted mesh • UV degradation – although this is generally not visible. If a net does not pass the visual inspection, it must not be used. It should be removed and either repaired or taken permanently out of service. Removing debris As well as catching a falling person, safety nets will also catch falling debris. Debris can damage the net and becomes a hazard if left in the net, as it may cause: • injury to a person who falls • the net to overload and deflect too much • the net to sag and increase the fall distance. When debris falls onto a safety net, work should stop immediately both above and below the net, the debris should be removed and the net checked for damage before work continues (see Figure 2). Safety nets on residential sites BS EN 1263 applies only to safety nets that are over 35 m2 and where the shortest side is at least 5.0 m long. On residential construction, individual safety nets are seldom 35 m2 or greater. Therefore, specific recommendations for safety nets that are less than 35 m2 include: • the fall height should be no more than 2 m • a class B net with 4.4 kJ energy absorption capacity should be used • don’t stored materials below the net in the clearance distance – sufficient clearance needs to be maintained • consider brace placement to maintain clearances • the net should have an initial sag of approximately 5–10% of the shortest side of the net.

Regular visual inspections Carry out regular visual inspections of the safety nets and keep records of all inspections on site. Table 2 outlines the required frequency of visual inspections. A visual inspection includes checking for: • incorrect installation • mesh abrasion • cuts or nicks in mesh 9

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BUSINESS

Building a better business model By Greg Sheehan

Times are changing fast. Who would have thought that our children could be walking around with smart phone technology at their hip? Technology is blowing through our lives faster than any of us can appreciate. It affects every part of our lives. I can’t think of a single area where technology, if you let it, doesn’t have an alternative option to the methods of years gone. So what about our businesses? Recently Forbes magazine, a leading international business publication sighted New Zealand as the best place in the world to set up a business. The cheapest, the easiest - generally just the best place for entrepreneurs to get underway.

Cool start. So why then, in this great nation, do we see ourselves struggling under huge debt levels? Why don’t we turn this opportunity into wealth? There are a variety of reasons of course, including the following. Our old tired business models could do with a shake up. A model is, of course, a small, simplified imitation of the real thing. A business model is no different. It’s a cut-down version of how your real business works. There are numerous examples of companies that have beaten their competitors (actually annihilated them in some cases) simply by using their business model as a strategic advantage (just think of Apple with music – who still buys music in a store?). 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

So how do you tweak your own business model? Or maybe completely smash it apart and rebuild it. There are essentially nine components of a business model that we prefer to use at RightWay. Perhaps have your own business in mind when you read down the list. Whatever you do, don’t be limited by how things are done currently – after all, that’s often where the problem is. • Value proposition – what are you actually selling the customer and why does it represent value to them?  • Customer segments – these are the specific value propositions you need to create to deliver to different groups or types of customers. • Customer relationships – different customer segments often need to be looked after in different ways.  • Channels – how do you reach and communicate to the different customer segments (e.g. different ways of advertising and selling)? • Revenue streams – there are often different pricing mechanisms for different groups of customers or value propositions (e.g. price per month, leasing/renting, full sale etc).  • Key resources – what infrastructure is needed, what assets are used, what people are required to deliver all of the above? • Key activities – in what areas do you need to perform well to run a successful business?  • Key partners – who can help you to leverage your key business areas? You can’t and don’t necessarily want to do it all yourself.  • Costs – once you have good answers to the eight points above, you can gather the costs of the model. If the costs are less than the revenues then that’s always a good start. If you want to make more money than your competitors then don’t just do the same old things. Give yourself a fright and shake things up a little. Consider new approaches to providing customer value.

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BCITO

Apprentice numbers reach new milestone BCITO achieved another first for the construction industry by reaching 5,000 apprentice sign-ups in 2014; an all-time record. In fact, at the close of business for the 2014 year, that number had actually grown to 5,542. “This milestone reflects the huge commitment from the building and construction community, our apprentices and BCITO staff,” says Ruma Karaitiana, Chief Executive. “We look forward to working with industry to maintain momentum over coming years to ensure we meet the skill requirements of NZ’s construction sector. We’re literally building people like never before.” Trevor Mackie of Christchurch was delighted to be number 5,000. Trevor works for joinery business R A Hale 1997 Ltd, and is lucky enough to really enjoy what he does every day. He’s looking forward to his future in the industry and can’t wait to become a qualified joiner.

lead in his joinery career just as he has in his racing career. His BCITO training advisor will guide Donald and Trevor through the apprenticeship programme over the next few years. BCITO wishes him the best for his learning journey. Having exceeded all forecasts for apprentice numbers in 2014, BCITO is committed to ensuring there are enough skilled professionals across all trades to cope with demand in the future. If you’re an employer keen to take on a new apprentice contact BCITO today on 0800 4 BCITO (0800 422 486) we have a dedicated job matching service and a database of many people who are interested in starting an apprenticeship in the construction industry.

Trevor began working for R A Hale when he heard about the opportunity through his school, Hagley Community College, and went for it. Three months later, and recognised as a dedicated and attentive worker, Trevor was signed into a joinery apprenticeship. Donald Bisphan, Managing Director, is pleased with Trevor’s progress. “He’s a really great member of the team, a good all-rounder and we’re looking forward to teaching and mentoring him further.” “I’ve always enjoyed working hands-on creating something and working out complicated and intricate details of a project from start to finish. Joinery lets me do both,” says Trevor. “The best thing about being an apprentice is learning something new every day and finding out better ways of doing things that you might not have known beforehand.” In his spare time, Trevor is a keen BMX racer and was ranked number nine in New Zealand at age 16. He also competed in the BMX World Championships held in Auckland in 2013. To win a BMX race you need to be in front going into the first turn and accelerate the fastest. The leader controls the race and the followers need to work harder. Trevor will no doubt take the 14

Trevor Mackie (left) with his mentor Donald Bisphan

TIEDOWNS DESIGNED FOR TRADESMEN QUALITY DOESN’T COST - IT PAYS! AEROFAST Tiedowns have been producing tiedowns in New Zealand for New Zealand tradesmen for over 30 years! Over this time the focus of the company hasn’t changed - produce practical tiedowns that last. The Tradesman range of Tiedowns have been designed and ﬁne-tuned with key features to make them more suitable for trade users....

> Wide opening hooks suitable for 25mm bars, common on NZ trailers.

> Strength ratings 1000kg > 2500kg for securing larger loads.

> Practical 5m or 6m lengths for larger loads and wrapping around bundles of timber.

> Wide handled ratchets are easy to use and enable serious tensioning.

> Heavy duty webbing outlasts cheaper imported alternatives.

MR5 / TWMR5

> 1000kg BS > 5m length > Wide opening S-Hooks

LC37-06

C50-06

> 2000kg BS > 6m length > Wide opening double J-hooks

> 2500kg BS > 6m length > Wide opening double J-hooks

NEW

HEAVY DUTY MESH CARGO NET

PRODUCT! >The mesh allows wind to go through so It Won’t Flap like tarpaulins >Anti-snag Fabric makes loading and unloading a breeze >Long lasting, Heavy Duty Rip-resistant Fabric >Multiple anchor points for Increased Flexibility (camlock &/or bungee cord)

>Long- Lasting stainless steel eyelets >8mm Bungee perimeter cord for Quick Covering of light loads >Heavy Duty 50mm webbing for Extra Reinforcement >Includes 8 Easy To Use camlock tiedowns produced to Safety Standards

Make sure your load is secured properly & avoid costly ﬁnes. Heav y Duty Mesh Cargo Nets Provide your load with more protection & security than your conventional bungee trailer nets in the market.

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S U I T E D TO

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TRADE COACH Developing a company culture Having the right culture in your company is vital to its success. The culture that exists in a company can make or break it, so it is important to make sure the right culture is proactively developed. By not taking a proactive approach, the culture will simply evolve in a random way by usually drifting towards whoever is making the most “noise” in the company. If that person - or group - is a positive and uplifting one, then you are lucky and the culture will generally be positive. If, on the other hand, the noise is a moaning, slack-arse, negative one then you have a problem. Other people will be dragged down to this level and the whole company culture will become negative. You will end up losing your best employees and retaining your worst. You will end up annoying your customers and losing them too. Ultimately you may be driven out of business or be driven insane by the negative energy…or both. So what can you do about it? You have to take control and actively develop your own positive culture in your company. The earlier you do this in your company’s life, the easier it will be. If you haven’t been through this process yet, I suggest you wait no longer and make documenting and implementing your chosen culture a priority project over the next quarter.

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.

Here are seven steps to follow:

Step 1. Define values. Thesestart with your personal values, but try to develop them as COMPANY values that others can share.

Step 2. Write it down. Commit this process to paper. Start with a rough draft and refine as you go through the process. You will need to communicate the culture to staff and others in writing, so make sure it looks right on paper.

Step 3. Think leadership. Take your manager (doing things right) hat off and put on your visionary leader (doing the RIGHT things) hat on. What will you need to do to inspire others to follow you.

Step 4. Top to bottom. Make sure that the culture is spread and embraced by EVERYONE in the company.

Step 5. Measure contribution. Make contributing to the culture a KPI for everyone in their performance reviews. You do performance reviews, right? No? You should - contact me to learn how.

Step 6. Reward contribution. Decide how you will reward positive contributions to the implementation of the company culture. “Caught being Good” bonus rewards, public recognition in meetings, noncash award, etc.

Step 7. Live it daily. Make sure you look for ways to live the culture every day in PRACTICAL ways. These may be quite small and, by themselves, quite insignificant, but they are important and tangible ways to keep the culture alive. Without practical examples, the culture may wither, as people feel it is just a theory and has no practical application in their daily lives. Contact me to discuss where your company culture is currently at and how I can help you effect some change for the better.

W E N

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For more information go to www.nelsonpine.co.nz Nelson Pine Industries Ltd, Nelson, New Zealand MS 20521 IT

Welcome to the New Zealand Institute of Building Surveyors (NZIBS) NZIBS Registered Building Surveyors have been at the forefront of the discovery of the leaky building problem in New Zealand since the late 1990s. But it is not all leaky buildings: We work closely with home owners, councils, government, architects, builders, quantity surveyors, engineers and other building professionals where in-depth technical building knowledge and investigation is required. Many of our registered members provide expert advice in construction disputes, at court hearings, and are key in isolating problems and finding technical solutions on many larger or smaller construction sites. Registered members of the New Zealand Institute of Building Surveyors are widely considered to be among the most qualified experts in the building industry in New Zealand. Cases often cover workmanship issues, leaky building claims, compliance, material performance, and the investigation of building defects.

are up to date with current developments and construction industry knowledge. The Core Module training is the foundation to becoming a Registered Building Surveyor. These training courses cover building law, forensic investigation, building science, material performance, construction methods, building remediation, technical report writing and expert witness work, and more. NZIBS 101 Workshop Series The 101 series is a great way to find out if becoming a Registered Building Surveyor could be for you. Get in touch with us if you are already in building surveying or work in architecture, engineering, quantity surveying, and construction management. If you study in the construction industry, membership of the Institute is open to you.

Are you working in the building industry and have the drive to become a technical expert?

Membership is also open to those with a significant degree of experience in the construction industry without necessarily having formal professional qualifications.

Our training:

Our workshops and module courses are open to all building professionals.

NZIBS Education Centre for Technical Distinction (ECTD) – Core Module Training Our building surveyors master a rigorous training to ensure they

Go to the NZIBS website; www.buildingsurveyors.co.nz or Ph: 0800 11 34 00.

Westport stalwart retires Martins Mitre 10 Westport is regrouping after the retirement of longstanding Trade Manager Brian Farrell, who has faithfully served the company for 28 years.

“You can’t replace that kind of knowledge,” says Troy Scanlon, Director of Martin & Co Mitre 10 Westport . “Brian made a big impact on the store during his almost three decades here. He played a significant role in driving the business and growing the trade operation.” The store evolved from a small joint enterprise in 1987 to the big operation it is today. Brian was involved every step of the way. He joined the store when it traded from an old bakery and had a singe lane drive thru. Mitre 10 Westport has since 1818

relocated to a new building, with a massive, double lane drivethru. Staff numbers have more than doubled.

Having traded in the town for the past 118 years, the business is a Westport fixture. The Scanlon family has owned it since 1937. Over the years Brian did everything from designing trusses to serving customers on the floor. He was always willing to roll up his sleeves and get stuck in. He was also quick to deal with any issues that arose. “He’d sort problems out pro-actively,” says Troy. Not only was Brian involved in all aspects of the business, he manifested exemplary loyalty and dedication. “He always treated the business as his own. You couldn’t ask for more. It was an awesome effort. Brian has been a huge asset and he will be a big loss.” The store recently gave him a good send off and wishes him well in his retirement. Heavily involved in lawn bowls, Brian can now spend some serious time on the green.

IMPORTANT

The 1st of January 2015 sees significant changes to the Building Act and Regulations that will affect EVERY builder. The changes include new responsibilities such as: 1. the need to provide a written building contract for all jobs over $30,000 2. make correct pre contract disclosures to all customers and 3. to attend to any defects reported by the customer for a period of 12 months. The question is,

ARE YOU

READY?

The timing of these changes is not ideal as they require builders to hit the ground running as of the 1st of January 2015. We’re sure you’d rather be fishing than running around like a headless chicken sorting out paperwork. The GOOD NEWS is that Certified Builders already have a suite of contracts ready to go and a help-line available to all members for a minuscule cost. If you’re already a member you’ll be

SWEET AS WAVE21689 M10

and if you’re not don’t worry, simply give us a call and we’ll help ensure you don’t hit any unnecessary speed bumps come the new year. To join the Certified Builders team visit www.certified.co.nz or call us today on 0800 237 843

APPRENTICE

The trials and triumphs of a chippy chick When I first started this job, I was completly clueless. The first thing I did was get a tape measure with a mirror on one side and assignd a pocket in my pinny for my lippy. But I had no experience with power tools at all. I had no idea what a drop saw was, let alone a powder-actuated nail gun.

However, I can honestly say that its all worth it. I love the challenge, the forward thinking and the reward of visiting a house that you built, once it’s been turned into a home and It looks amzing. Pleasure for the job puts perfection in the work. Ka kite ano.

I remember the first day so vividly. Dale briefed me on how to build a wall frame and set me to it. I laid all the studs out, nailed them to the top and bottom plate, nailed the nogs in and was ready to stand it up. Then I grabbed Dale to give me a hand lifting it into place. Well, we had to use a couple of pinch bars to get it off the floor! You see, my skills with a nail gun were that of a deliquent and I’d missed so many times that I’d nailed the frame to the floor – very firmly indeed. I had between nine and a dozen nails in each nog when there’s only supposed to be six maximum, because I had kept missing. There was hardly any wood left because I’d shot it apart. Then he got me to nail off about 30 joist hangers, which I did merrily, only to find on completion that they were all upside down. I spent the next hour pulling 480 nails out and putting the hangers on the right way. I don’t know what must have been running through Dale’s mind after the first day. I’m not sure I want to know either. But I loved it; every minute, I was totally motivated and I worked my ass off all day long. Still do. And that’s been my saving grace. It was hard, I’m sure, for my boss at first but Dale’s such a positive “lets make this happen” kind of guy, he can see that attitude is a hell of alot more important than experience when it comes to apprentices. And the bruising, the never-ending bruising. On Friday night, when I get dolled up with the girls, I throw on a dress and there’s always big nasty marks all over my legs; not a good look, I can tell you. I really need to stop kicking things with my shins, not to mention my poor, poor nails. I’ve given up on them – there’s just no use trying to keep them pretty anymore.

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

WIN ONE OF TWO

MILWAUKEE SHOCKWAVE DRIVER BIT SETS

Answer the following question and go in to win one of two Milwaukee Shockwave Driver Bit Sets.

Email your answer to m10trade@mitre10.co.nz with the words ‘April 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 May 4th, 2015. Conditions of entry: You may enter only once/ Prize(s) are as outlined. Prize(s) are non-

refundable, 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.

Question: In residential construction, how much energy absorption does a Class B safety net require?

THIS PUBLICATION IS RECOGNISED BY THE BUILDING AND HOUSING GROUP AS CONTRIBUTING TOWARDS THE SKILLS MAINTENANCE REQUIREMENTS FOR THE LICENSED BUILDING PRACTITIONER 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 10 April 2015

Same great ADOS products, now with a fresh new look!

Catch me, Nicky Sinden, on the ADOS Addicted to Fishing TV Series, airing on Prime Time TV, Saturdays @ 5:00pm - see you there!