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A new day dawns for Marlborough builders

The resounding message from the experts calls for new innovative solutions to be explored for the future of building. Marlborough Magazine speaks to professionals in the building industry to understand the changes the industry is facing and what advice they can offer locals thinking about building and renovating.

The construction industry has seen disruption unlike anything before thanks to a perfect storm of events sparked by Covid-19. As with many other industries, the building industry has been faced with supply shortages throughout 2021 and into 2022. Added to this, record low interest rates and an entire globe in varying levels of lockdown has led to an increase in disposable income within the community, causing demand for things like new houses and home improvements to skyrocket, without materials readily available. Certified Builders Association of New Zealand Marlborough President Nic Hill, of Hillco LTD, says the material shortage has made planning difficult. While pauses have been placed on many projects as tradespeople await supplies, other projects are able to go ahead thanks to more widely available alternatives. “All my clients; we’re giving them A, B and C options, and we’re giving them those options at the start. It’s about preparing your clients for options and changes that they are happy with and getting products that are more readily available,” Nic says. For the most part, builders can continue with projects using a mix of careful planning and clear communication with clients, designers, sub trades and suppliers. HR Construction owner Donna Ryan says Marlborough was unique from other regions in the way the pandemic affected spending in the region. “There is an enormous amount of building work currently being undertaken in New Zealand and this has added significantly to the strain on supply of materials,” she says. “The wine industry has a huge impact on the level of building that happens in Marlborough and the wealth within the province … Being able to continue to harvest the grapes during the first Level 4 March 2020 lockdown meant that Marlborough did not feel the economic impact that other parts of New Zealand felt.” Donna and her team are working hard to minimise the impact on their clients by setting realistic expectations. “We are constantly communicating so that everyone involved is prepared and ready for when we push the go button,” she says. “Clients are very aware of the challenges now, and we are lucky to be working alongside positive people who are supportive, realistic, and understanding.” Travis Taylor, owner of Travis Taylor Builders reiterates the importance of clear communication between all parties involved, and that planning and organizing of building supplies and sub trades well in advance is paramount. It’s important the client enters the new build or renovation with an open mind and realistic expectations. This will result in a lot less stress for both client and builder and help contribute towards a much more enjoyable experience. Nadine Norton, owner of Endeavours homes promotes the same message, building a new home is

an exciting adventure which can be made incredibly enjoyable when you find a team of passionate people to work alongside you who understand your vision and who, most importantly, you can trust. Like most building companies, “Endeavour Homes are trying to keep one step ahead of any new issues to keep jobs moving and to minimise any hold ups or stoppages that can occur” says Nadine. We are extremely fortunate in that we have outstanding support from our local merchants and sub-contractors who have done their utmost to keep our builds moving forward. “Endeavour Homes chose to invest in their clients by employing a new Client Liaison Manager whose role is purely client focused. During these times of uncertainty, we wanted our clients to have a dedicated person within our company who is available to offer assurance and support throughout the build process. This very specialised role also encompasses all design related aspects of the build” says Nadine. Fairfield Construction owners Katja and Mark Thompson say that alongside challenges stemming from the pandemic, proposed changes to the Building Code are a positive step in the right direction but much more needs to be done. By changing regulations to building requirements including lighting, insulation, heating and cooling systems, this helps ensure that the industry is slowly taking steps to ensure new homes are built healthier and more efficiently. “We believe that the level of energy efficiency in buildings needs to be vastly improved whilst also balancing increasing costs and clients’ expectations. Furthermore, there needs to be a much bigger focus put towards reducing waste in the

Due to the shortage of Gib, other alternatives can be explored like this example of Oriented Strand Board. Ply or recycled rimu are also alternative sustainable options. You can see an example of OSB in the office of Fairfield Construction.

building industry, especially focusing on solutions for smaller regions like Marlborough” they say. Katja and Mark are excited to see an increase of like-minded people in the industry, as well as many clients who are committed to building better homes. “We’re seeing more efficient, better performing homes, built in a way that produces less waste, and ultimately, a smaller carbon footprint. The industry is slowly changing, and Fairfield Construction is excited to be leading it,” Katja says. Those in the renovation space are also thinking laterally. Smith & Sons’ Daniel Francis says the pandemic has caused a ripple effect of impacts, resulting in likely the most challenging period he’s seen in the industry. That said, there are still some amazing projects underway in the region, he says. “People are more aware of the issues we are facing and understanding that they need to work with us to get the desired outcome. We are still delivering great projects for our customers, it just requires a little more patience than people are used to.” Dan is proud of the changes his team has brought to the industry, with a design and build system that works to eliminate as many issues as possible for clients before a spade hits the ground, a system he is seeing many other builders implement themselves. “We are seeing more solution-oriented planning to move customers through their projects,” he says. Nita Craig, of Refresh Renovations, has also seen a reliance on a customer focused, systemised approach to renovation and building projects in recent times. Difficulties faced by the industry have not put a complete halt to work but have meant a shift in the understanding of what a realistic timeframe might be. “Given the current climate, if you are looking at renovating, talk to local industry professionals who are in the know with industry updates,” she says. “We are locals who live in the area and can manage your project for you from start to finish, and will take responsibility for navigating the current building environment.” A positive result of the pressure imposed by the pandemic is that people in all levels of building are seeing the value in choosing the right registered architect or architectural designer to design their home. Riki Palatchie, ADNZ Registered Architectural Designer says, “working with the right architect or designer often results in less unexpected costs when it comes to the construction phase of a project and results in a smarter home that will stand the test of time”. Riki comments that often people rush through the design process to get into their dream home without allowing the right amount of time to plan. Clients are even more inclined to do this now as they don’t want to miss out on materials when they are seeing prices rising. “We tend to get caught up on big spaces when smaller and efficient spaces can also be an answer to reducing overall costs. With the chance to spend more time investigating options and planning, Riki’s team can ensure the right resources are found that can make your home more energy efficient and smarter. Riki agrees that “this is the perfect time for the industry to be looking at alternative resources and not just the stock standard options available. This is one of the biggest investments a lot of people will make, you want to get it right from the start”. Mitre 10 Mega owner David Hawtin says cracks in the supply chain were beginning to show prior to Covid-19, due to a number of large suppliers closing down or moving offshore. Prices were forced upward

Supply shortages means that new alternatives can be explored in the industry.

and costs increased when the pandemic began to affect supply, but Mitre 10 Mega was well placed to plan for delays, thanks to a processing system implemented following the 2016 earthquakes. “Our trade and building clients are incredibly important to us in Marlborough, so it’s been a top priority to support them and ensure we have allocated efficient stock to their needs. This was also achieved by putting a stop on supply to out-of-town buyers,” David says. He anticipates the demand will soon begin to normalise, allowing the balance of supply to even out. “We are lucky in our region as we have stable, quality building companies. They have the capabilities to sustain the current environment and will continue to offer superior building solutions that our region can be proud of,” he says. “Until we get out the other side, plan well in advance when planning a DIY or renovation project. It’s simple, order early and be well prepared to allow for more time to complete the job.” Micky Dean, owner of Dean Building and Renovations is remaining optimistic. “Labour shortage is another factor effecting our industry, but this allows companies to look beyond the normal candidate pool, which creates diversity within the industry” he says. There has been noticeable interest in people looking to make career changes and retrain in a new field which will help labour shortages in the long term. Micky also believes that the current climate is forcing the building industry to practice forward planning and focus on areas businesses can strengthen their procedures. This will aid the growth in our region as new innovative and productive solutions are explored. Representing two building companies, including eHaus Marlborough. eHaus are NZ leaders in Passive House Design and Building which means Micky and his team can benefit from the buying powers available to them. “Now is a time to be looking at better ways to operate, discover better sustainable solutions and utilising what we have available to us” says Micky.

How does it look from the property market perspective?

Mortgage Room owner Paul Fuller says the good news for developers and new home builds is that new construction is seen outside of Reserve Bank lending restrictions, this means that if you are buying a property less than six months old or can show you have committed to a new building project, you only need to have a 10% deposit to apply for a mortgage and banks will have more flexibility to lend against a new build. Developers have the chance also sell their builds to buyers with better flexible mortgage opportunities. Clients will still need to show they can afford a mortgage or loan through a good budget, and they should start the process early with good advice and support, Paul says. “Have a good personal budget and work within it, reduce and pay off any short term debt and stay away from easy credit like afterpay, save as much as possible to build your deposit. Keep your anticipated timeframes realistic as loans are taking more time to process these days.” RE/MAX Real Estate Blenheim owner, Kate Bradley, says the impacts on the building industry have had a flow-on effect into the residential property market by increasing demand for property and increase in values. Despite this, the trend is one that mimics the ebbs and flows seen in the market many times before. The best advice Kate can offer is if you are looking for sections to buy, make yourself known to the developer and their agent as soon as possible so you can be notified sooner rather than later when opportunities arise, this can give you more choice and get the ball rolling on your plans. Like Paul, Kate says the best thing a potential buyer can do is be prepared and gain answers to any questions ahead of time. “Make sure that you understand the buying process, organise your finance, organise a solicitor and ensure they go over your contract and cover off the fine print, find out what the bank needs from you and ensure they understand what you are looking for, there are other banking and government support opportunities available for new home builds… you might not need as much as you think.” The building industry is experiencing a challenging time, but the clear message from the experts is to do your research, be patient and to remain positive about your future plans, they will happen… it might just take a little longer, but you may be better off for it.

Dean Building and Renovations crew feeling excited following the hard work put into getting them to the next phase of this project. Even with material delays, there is still plenty of work to do. Subcontractors Morgan Plumbing are installing Spanlok roofing on to the HR Construction project at Longbeach Bay in the Marlborough Sounds. Builders and sub-contractors continue to have strong relationships and work together to support the building industry.