BOOK BY 1 FEB FOR CONFERENCE EARLY BIRD RATES — See p6
DECEMBER 2017/JANUARY 2018
HAZARDOUS SUBSTANCES
2017 list MPA Fina
Changes are here
RETENTIONS: Questions answered
SEASON'S GREETINGS Happy holidays!
TECHNICAL THEME
MEPS IN NZ Why electric HWC must comply
YPC WINNER Young Plumber of the Year!
WASTEWATER TREATMENT
Commercial & domestic systems & more
1 great plan 2 phone options 3 months free Choose from an iPhone 7 or an iPhone 8 on a Red+ Business Essentials 24 month plan, and get 3 months free. All for being a Master Plumbers member. iPhone 7 32GB for $0 with our 22GB Red+ Business Essentials 24 month term plan for $86.87 And get 3 months of your mobile plan for FREE.
iPhone 8 64GB for $8.33 per month (and $49 upfront) with our 22GB Red+ Business Essentials 24 month term plan for $86.87 And get 3 months of your mobile plan for FREE.
Ready? Ready? Call 0800 VF PLUMB to get this members’ only deal today. Offer available to new and re-signing Master Plumber’s members only until 31 January 2018 or while iPhone stocks last. Vodafone terms, exit and transfer fees apply. Monthly plan price excludes GST. Total monthly cost for the iPhone 8 offer is the monthly phone cost plus the monthly plan cost. Full iPhone cost must be repaid if you exit or transfer your plan before 24 months. See vodafone.co.nz/red-plusbusiness for terms. Plan price excludes gst. Three months free applies to base mobile plan only.
EDITORIAL
Volume 69, Number 6 MAGAZINE TEAM CEO Greg Wallace EDITOR Beverly Sellers 03 543 2008 beverlysellers@xtra.co.nz DESIGN Sally Travis Design www.sallytravisdesign.co.nz PRINT Service Printers 258 Taranaki Street Wellington 6141 SUBSCRIPTIONS NZ Plumber is published six times a year by Master Plumbers, Gasfitters & Drainlayers NZ. Members receive all six editions. Non-members can subscribe online at www.masterplumbers.org.nz MAILING LIST For enquiries, or to update your details: beverlysellers@xtra.co.nz Non-Master Plumbers’ members with address detail changes should notify the PGD Board direct, giving their registration number licensing@pgdb.co.nz TO ADVERTISE Contact Catherine Schuster 027 839 8398 cschuster@masterplumbers.org.nz
NZ Plumber is the official magazine of Master Plumbers, Gasfitters & Drainlayers NZ Inc. Contact details for the MPGD Board, Society staff, branches and associations are available at www.masterplumbers.org.nz ©NZ Plumber 2013. Registered as a Newspaper, GPO, Wellington, ISSN 0111-4379. NZ Plumber is subject to copyright in its entirety. The contents may not be reproduced in any form, either in whole or in part, without written permission of the publisher. All rights reserved in material accepted for publication, unless initially specified otherwise. All letters and other material forwarded to the magazine will be assumed intended for publication unless clearly labelled ‘Not for Publication’. Views expressed in articles in NZ Plumber magazine are not necessarily those of Master Plumbers, Gasfitters & Drainlayers NZ Inc, or of the Editor. While every effort has been made to ensure the accuracy of the information included in this publication, the publisher and the Editor take no responsibility for errors or omissions or for any consequences of reliance on this information. Publication of advertising material implies no endorsement of either a product or service.
Here comes summer Ready for a break after a year that’s been flat tack?
THE SUN IS flooding into my workspace and the sky is a clear cloudless blue. All of which signals that it’s summer and time for a holiday after another full-on year for the NZ Plumber team. We hope you’ll be doing the same in your workplaces. This has been a booming but challenging year for construction industry employers. The new government is promising fees-free training for firstyear apprentices from 1 January, and it would be good to see employers given similar support to take them on to help keep up with workload demands. Slowly but surely, the word is getting out to young people that university isn’t the only option on leaving school. Construction trades apprenticeships offer a solid career path that pays from day one, with plenty of opportunity to move up the promotional ladder. This year has seen Plumbing World’s first-ever Young Plumber of the Year competition (see p64), a fantastic initiative to attract more young people to our trades. The Masterlink team has also been out and about at trade shows, school and careers events to spread the message about apprenticeships in our industry (p66). Thank you to all our advertisers and to those who have been profiled in the magazine during the year. Your stories and projects are what bring the pages to life. Thanks, also, to the many specialist writers and contributors who have provided articles for the magazine—and to the Master Plumbers’ Business Partners for their support of NZ Plumber and their expert input into the new technical themes, launched this year. Have a wonderful Christmas and a relaxing summer break, wherever it takes you. We’ll be back with the February-March edition at the end of February.
Beverly Sellers Editor, NZ Plumber, beverlysellers@xtra.co.nz
OVER TO YOU The best email, letter, tip or photo sent in by readers that we publish on this page wins a $30 prize voucher! Do you have a picture, story or news to share? Or feedback on any of the articles you’ve read in NZ Plumber? We’d love to hear from you. Email the Ed: beverlysellers@xtra.co.nz or give me a call on 03 543 2008. Clay trench installation Love the NZ Plumber magazine. It is jam packed with great information every plumber can use. No wonder the magazine is award winning—well done. I just wanted to comment on the upcoming changes to the plumbing apprenticeship to a plumbing and drainage apprenticeship, which I believe is a good thing. It would be great if there was a pathway for existing plumbers to become qualified as drainlayers. Page 18 of the last magazine showed a drainlayer installing pipe into a clay trench. This drain should be on a bedding material placed in the base of the trench before the pipe (AS/NZS 3500.2.2015 5.4.1) and there are other smaller things in this photo that the supervisor could improve on. Peter Jackson, Peter Jackson Plumbing, Kapiti Coast Ed: Thanks for your letter, Peter—this edition's prize voucher is coming your way. The photo was supplied by The Skills Organisation, so we asked them for their response, which is given below. "At the time this photo was taken, this section of pipework was being pre-fitted into the trench before being lifted back out and fines placed beneath and around the pipework. With any photo shoot, Skills ensures there is a subject matter expert present to confirm best practice and compliance." December 2017/January 2018
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Inside this issue
48
DECEMBER 2017/JANUARY 2018
WHAT’S ON 6 The 2018 New Zealand Plumbing
TECHNICAL THEME: WASTEWATER TREATMENT 21 On-site sewage treatment
Conference is just around the corner
MASTER PLUMBERS NEWS 8 CEO Greg Wallace on government
engagement; awards entries open; code of conduct update; ongoing QA process and Guarantee modification
22 Treatment for Auckland Wastewater install with crushed glass sand
IN FOCUS 12 Retentions Q&A
24 Under pressure Pressurised sewer systems and networks
Some more questions answered
16 At the half-yearly Reporting on the Master Plumbers halfyearly meeting
REAL LIVES 18 Second to none!
Meet the first Young Plumber of the Year winner
30 Repair by robot An NZ medical first for this drainlayer
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December 2017/January 2018
A new solution for upgrading commercial plants
PROJECT SPOTLIGHT 28 Siphonic solution
On-site sewage treatment challenges at Christchurch’s Justice & Emergency Services Precinct
NUTS & BOLTS 32 Soak pits
BRANZ advice on making pit size calculations
34 Updating AS/NZS 3500 Plumbing & drainage standard under review 35 Pipe penetration through roof BRANZ guidance on small pipe penetrations in roofs 36 MEPS requirements for HWC Why electric hot water cylinders must comply 38 Gas ring This edition's updates for gasfitters
INDUSTRY TALK 40 A super weekend Close to the action at the ITM Auckland SuperSprint 41 Top talents Certifying exam high achievers 41 Makeover at MBIE Improvements for Building System Performance
CONTENTS
ON THE COVER BOOK BY 1 FEB FOR CONFERENCE EARLY BIRD RATES — See p6
DECEMBER 2017/JANUARY 2018
46
HAZARDOUS SUBSTANCES
2017 MPA Finalist
Changes are here
12
RETENTIONS: Questions answered
SEASON'S GREETINGS Happy holidays!
TECHNICAL THEME
36
58 42 Sam’s speak The importance of being professional 42 Public loos feel the strain… of population and tourism growth 43 Workout for water Unicef and Les Mills global fundraiser
48 H&S: are you onto it? A point-by-point refresher on workplace H&S legislation
SMART BUSINESS 50 Awkward conversations Tackling staff performance issues
MEPS IN NZ Why electric HWC must comply
YPC WINNER Young Plumber of the Year!
Commercial & domestic systems & more
18 Cover photograph: Are you complying with the new hazardous substances regulations?
59 From the IR: beware cashies Every undeclared cash job leaves a trail
NEXT GENERATION 60 WorldSkills Abu Dhabi
Looking back on a successful international competition for the Kiwi team
43 Warning for solar panel retailer Retailer likely to have breached the FTA
52 Insolvency: enemy #1 Why you shouldn’t rely on a director’s personal guarantee
44 Melbourne Cup Day A day at the races for the Auckland Master Plumbers
53 Host with the most Keeping work party season safe and enjoyable
44 A costly outbreak Financial cost of the Havelock North water contamination event
54 Payroll changes Get your business in order for changes in April
44 Anti-theft project Have your say on this planned project to protect tradespeople's tools
55 Business security Keeping your physical and online presence safe
45 Construction costs New international construction measurement standards
57 Got your NZBN? Are you prepared for the new way of doing business?
73 Dodgy Plumbing A bumper Christmas edition…
SAFETY FIRST 46 Hazardous substance changes are
58 Be tax ready Steps to take ahead of January’s payments
here WorkSafe explains the new safety focus
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WASTEWATER TREATMENT
64 10 of the best Plumbing World reports on its first-ever Young Plumber of the Year event 66 Masterlink round-up It’s been a year of intense activity at Masterlink
PRODUCTS & SERVICES 70 Some useful new software AND FINALLY 72 Offcuts This edition's media snippets of the plumbing kind
December 2017/January 2018
5
NEW ZEALAND
PLUMBING CONFERENCE 2018 21-23 MARCH, HAMILTON
CLAUDELANDS EVENTS CENTRE, HAMILTON
2018 NZ Plumbing Conference Date: 21-23 March Venue: Claudelands Events Centre, Hamilton Cost: $795 ex GST (member full registration, earlybird rates until 1 February) Book: www.nzplumbingconference.org.nz Take time out of your business to grow your business at the 2018 NZ Plumbing Conference in Hamilton. Here’s how: • • • • • • • •
Business leadership advice from speakers Dr Lester Levy, Eric Murray and Jamie Fitzgerald Market forecast from BNZ Chief Economist Tony Alexander Industry updates from Master Plumbers, PGDB and Skills Technical sessions for the PGD trades Business workshops Latest products, services and technologies at the trade show Networking opportunities Optional PGDB & Mico CPD Training Session (payment through PGDB)
There are three registration options: Full Registration; Conference Sessions Only; Partner Registration. Full registration includes: • Master Plumbers Kick Start Happy Hour at Claudelands • Mico Welcome Night Dinner at Vilagrad Winery • Marley Fun Night Dinner at Hobbiton • 2018 New Zealand Plumbing Awards, sponsored by Plumbing World • Attendance at all conference sessions • Optional attendance at the member-only Business Workshops or Mobil Leisure Afternoon activities (Extreme CamJet Experience or Pistol Shooting Extravaganza) • All morning and afternoon teas and lunches. • Partner Activity Programme (for partners wishing to attend). For full programme details and to register online, head to www.nzplumbingconference.org.nz (earlybird rates apply until 1 February).
Top: Hobbit-theme entertainment at the Marley Fun Night Dinner. Above centre: The Claudelands Events Centre. Right: The Mico Welcome Night Dinner is at the superb Vilagrad Winery. 6
December 2017/January 2018
Keynote speakers Find out more about the keynote speakers at the 2018 NZ Plumbing Conference. There will be many other speakers on specialist topics, too. Jamie Fitzgerald In 2007, Jamie Fitzgerald became the first-ever Kiwi to reach the South Pole unsupported on foot, with fellow adventurer Kevin Biggar. This 52-day expedition created media attention worldwide, due to their ‘business-like’ approach to success. Jamie’s other sporting achievements include a world record for crossing the Atlantic in a tiny rowboat, and double NZ representation in rowing and surf lifesaving. In a professional capacity, he has worked in the marketing, financial, agricultural and education sectors. He has indepth experience working with businesses on strategy implementation and organisational effectiveness. Thousands of people around the world have benefited from Jamie’s insightful and compelling messages on dealing with uncertainty, team effectiveness, goal setting, communication techniques, dispute resolution and reaching objectives. Dr Lester Levy Dr Lester Levy is best known for leading a number of organisational performance transformations in both the public and private sectors. Dr Levy is the Adjunct Professor of Leadership at the University of Auckland Business School and Head of the University’s NZ Leadership Institute. In 2013, Dr Levy was appointed a Companion of the New Zealand Order of Merit for services to health and education. A Fellow of the New Zealand Institute of Management, his leadership research has been published in a number of international, peer-reviewed academic journals. He is also author of the book Leadership and the Whirlpool Effect. Eric Murray Eric Murray is a two times Olympic and eight times world champion rower. In the space of eight years, Eric Murray and Hamish Bond have never lost a race, amassing an incredible 71 consecutive race victories. The journey hasn’t been without its up and downs, and learning how to be successful and stay successful has been key to Eric and Hamish’s sporting legacy. Four time winners of the Halberg Team of the Year, they have taken out the Supreme Award twice. In 2012, Eric was appointed a Companion of the New Zealand Order of Merit for his services to sport and rowing. A true ‘Kiwi bloke’, he speaks openly and honestly about staying motivated, challenging yourself and being able to differentiate when to follow and when to step up as a leader.
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MASTER PLUMBERS NEWS
Engaging with government WITH THE CHANGE of government comes an increased workload for Master Plumbers as we start engaging with the new ministers to ensure our views are represented. We have had preliminary discussions with Building and Construction Minister Hon Jenny Salesa, Housing and Urban Development Minster Hon Phil Twyford and Education Minister Hon Chris Hipkins. Master Plumbers believes five key industry issues need addressing with some urgency. We have been expressing our concerns on these matters and hope that, with the change in government, they may be given higher priority. Members need to be aware that the process can take time, but we will keep you informed.
1. Skills shortages In our opinion, the shortage of qualified plumbers, gasfitters and drainlayers is the most pressing issue. With the current shortfall of approximately 9,000 new homes in New Zealand, there are not enough tradespeople to meet demand. In our sector alone, there is a perceived shortage of approximately 2,200 plumbers—with 600 short in Auckland alone last year. With just under 19% of nationwide plumbing firms employing apprentices, we consider that the government must provide some kind of financial support to incentivise employers to take on more apprentices.
2. Apprentice training delivery We frequently hear concerns from members about the quality and consistency of apprentice training being delivered by the 11 polytechnics around NZ. We have raised these issues with
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December 2017/January 2018
Master Plumbers wants to see the new government addressing five top-priority issues for our industry.
The Skills Organisation and are pleased to confirm that an independent review of all polytechnics is underway. Master Plumbers is looking forward to seeing what recommendations come from this report.
3. Plumbing self-certification For some time, we have been advocating for plumbers and drainlayers to be able to selfcertify their work. Gasfitters and electricians can self-certify their work, yet plumbers and drainlayers must have all their work inspected and signed off—and a significant amount is going unchecked due to lack of resource within some of the larger BCAs. We were advised by the previous government that self-certification by plumbers and drainlayers would be treated as part of wider reforms for the Building Act, but we have seen no progress on the promised review of occupational regulation signalled in 2015.
4. PGD Act review The Plumbers, Gasfitters & Drainlayers Act 2006 Act is now 11 years old and it is four years since MBIE was required to start the review. However, our industry continues to wait for a response from MBIE to submissions made in 2015 following initial public consultation.
5. Plumbing product quality For some time, Master Plumbers has been publicly voicing its concerns about the number of inferior plumbing products infiltrating the NZ market. We want to see the government setting and monitoring rigorous standards for the importation and supply of plumbing products. We understand MBIE has commissioned research into the Australian WaterMark scheme to see how it might operate here, and we hope to see their report in the near future. In the meantime, as we approach the end of 2017, I would like to take this opportunity to thank all staff at Master
Plumbers, Masterlink and NZ Plumber for their hard work during a very successful year. I’m happy to report that we have met many of our strategic goals and our organisation and businesses are growing, though there is still plenty more work to be done. We wish all members and Business Partners a Merry Christmas and hope that everyone enjoys a well-earned break. We look forward to a strong and prosperous New Year for the industry.
Legionnaire’s disease concerns In recent media coverage, plumbers have been expressing concerns about the lack of Legionellosis controls for water supplies. Master Plumbers has been in discussions with the Department of Health and the Building Systems Performance group within MBIE about this issue. A preliminary report from independent research being conducted at Otago University suggests there are more cases of Legionellosis in New Zealand than currently thought. We feel there should be a requirement for six-montly testing of hot water systems in high-risk environments, such as retirement villages, hospitals and early childhood centres, to ensure safe water temperatures are maintained and there are no dead legs in the plumbing system. The Ministry of Health has guidelines on the prevention of Legionellosis in NZ, which recommend six-monthly testing in buildings of this kind—and we advise members to notify relevant clients that this frequency of testing is standard good practice.
Greg Wallace, CEO Master Plumbers, Gasfitters & Drainlayers NZ
MASTER PLUMBERS NEWS
Awards entries open!
NEW MEMBERS
Enter now for the 2018 New Zealand Plumbing Awards to give top people, projects and products the recognition they deserve.
A warm welcome to new Master Plumbers’ member businesses: • DJ Plumbing & Gasworks Ltd, Upper Hutt • No Pressure Plumbing & Gasfitting Ltd, Lower Hutt • Plumbing 2.0 Ltd, Auckland • Plumbing 4 U Ltd, Auckland • Plumb Tight Ltd, Auckland • Te Anau Plumbing Ltd, Te Anau • Tuffnell Plumbing Drainage and Gas, Nelson
Awards entry forms for the 2018 New Zealand Plumbing Awards are now up at www.nzplumbingconference.org.nz and www.masterplumbers.org.nz The nine awards categories are: • New Zealand Master Plumber of the Year • New Zealand Plumber, Gasfitter or Drainlayer of the Year • New Zealand Training Leader of the Year • Outstanding Services to Industry Award • Outstanding Projects Award • Product of the Year
• Plumbing World Scholarships (for five Masterlink apprentices) • James Douglas Medallion • Graeme Victor Smith Contribution to Industry Award.
Want to join?
Get your applications and nominations in by 9 February 2018. Full criteria and submission details are available on the awards forms.
Contact Catherine Schuster on 027 839 8398 or email cschuster@ masterplumbers.org.nz SPECIAL TWO-YEAR MEMBERSHIP DEAL AVAILABLE!
Training in 2018
We are using topics suggested in our training survey to develop the 2018 training timetable, due to start near the end of February. Thanks to all who responded to our training survey. Its main purpose was to ascertain topics that members want for courses in 2018. Of the respondents 66% were over 50 years old; 79% have 20-plus years of plumbing experience; and 80% prefer face to face training to any other. The two most popular times for courses were early evening, followed by early morning.
Topics consistently mentioned were: • Backflow introduction • Compliance & legislation updates for gas & plumbing • Construction Contracts Act • Customer service • Drain gradients • Disputes resolution • Engagement with councils & understanding their needs • Fire collars & passive fire protection • Gas upskilling (eg, LPG bottles)
• • • • • • • • •
Health & safety Limited electrical course Marketing & social media Pipe sizing: different pipes & their applications Quotes & tendering Subcontractors & where they stand Sustainability & environmental (eg, solar hot water) Terms of trade & chasing up debt (including mention of CCA) Understanding NZS5601 & NZS3500
Best in Brand prize
Another winner—and time for your entries. “Thought I’d show you the latest design for our fleet,” says Mark Watkins of Advanced Plumbing in Hawke’s Bay. “We think it’s looking pretty good.” We totally agree—this month’s prize voucher winging its way to you Mark. Be in to win For your chance to win the next $200 prize voucher, show us how you’re using the Master Plumbers brand in your business. Send your photos to beverlysellers@xtra.co.nz by 27 January 2018.
December 2017/January 2018
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MASTER PLUMBERS NEWS
Communicating with members
We recently sent out a communications survey. Thanks to those who took the time to provide comments in the communications survey we sent out in November. Although the response was disappointingly low, there were several points of interest: • The three main ways respondents got their news were online, TV and radio. • The three most popular social media platforms were Facebook, Instagram and Linkedin.
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The most popular trade publications were NZ Plumber, the PGDB InfoBrief e-news and Rheem Off-Site magazine. The preferred method of receiving Master Plumbers' communications were (in order of preference): Newstube e-news, direct email and NZ Plumber.
For those who like up-to-the-minute updates, like us on Facebook at facebook.com/masterplumbersnz
Code of Conduct update
Two changes have been made to the Master Plumbers Code of Conduct. Adherence to the Master Plumbers Code of Conduct and Code of Practice is a fundamental requirement of membership. It is updated from time to time, with the latest version always available to view in the members’ area of the website. To ensure that all members have fair, open and transparent business practices, changes have been made to Clauses 2 and 5 of the Code of Conduct, and 6.1, 11 and 16 of the Code of Practice.
The document now also includes reference to the Quality Assurance processes that are carried out with new and existing members. Members completing their Annual Quality Assurance Declaration will need to confirm they have read and agree to abide by the current Code of Conduct. Find the Code of Conduct under Rules & Strategy in the member log-in at www.masterplumbers.org.nz
Modification to Guarantee
What happens if a nonmember certifies work on behalf of a member? The Master Plumbers Guarantee has been modified in relation to the Rules of the Society (Rule 5.1). Below is a quick and easy explanation of the change: “If a Master Plumber undertakes something such as gas work, which he is not certified to do and chooses to use a non-Master Plumber to certify the work (whether this is done for payment or not), the customer will be covered by the Master Plumbers Guarantee. The Master Plumber, however, will be fully liable for any workmanship issues that arise from the completed work.” It is the Society’s strong preference that Master Plumbers only use another Master Plumber to certify any work they have done that sits outside the scope of their own certification. Find the updated Master Plumbers Guarantee rules under Rules & Strategy in the member log-in at www.masterplumbers.org.nz
Ongoing Quality Assurance
New measures have been introduced for the ongoing Quality Assurance assessment of members. At the Master Plumbers’ Half-Yearly Meeting in October (see p16), Operations Manager Margaret Dawson outlined new steps for the Quality Assurance process for new and existing members. The face-to-face review of all businesses
prior to joining will continue, as will the annual Quality Assurance Declaration— though members are now required to submit their online Declaration by the end of February each year. From January 2018, random reviews of no fewer than 15 percent of the membership
will be conducted each year, with support provided to members if needed in reaching the quality benchmark. If members have any queries about the Quality Assurance process, please email mdawson@masterplumbers.org.nz
Supporting NZ Talent
Master Plumbers backs the ‘NZ Talent’ initiative. Master Plumbers has joined nearly 200 business and organisations in getting behind NZ Talent—an open letter to the New Zealand public about changing perceptions of what it means to be ‘talented’. “While traditional tertiary education has its place, it is one of many pathways to
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December 2017/January 2018
employment,” says the letter. “Internships, apprenticeships, new micro-credentials, on the job training, online courses and badging are all effective ways to learn.” The organisations listed on the NZ Talent website—including Master Plumbers and Masterlink—confirm that they do not require tertiary qualifications for a range of
specific, skilled-based roles. One place people will be able to find these jobs is on the Trade Me Jobs site, with a clear indicator that no tertiary qualification is required to apply.
Platinum Partners Master Plumbers, Gasfitters & Drainlayers NZ thanks the following Platinum Partners for their support:
Gold Partners Master Plumbers, Gasfitters & Drainlayers NZ thanks the following Gold Partners for their support:
Silver Partners Master Plumbers, Gasfitters & Drainlayers NZ thanks the following Silver Partners for their support:
December 2017/January 2018
11
IN FOCUS
Retentions Q&A Some questions about retentions were raised at a recent online seminar for quantity surveyors.
THE NEW RETENTION regime came into effect from 31 March 2017 with the aim of providing protection for retention money. In April 2017, the Specialist Trade Contractors Federation, Registered Master Builders and NZ Institute of Quantity Surveyors issued Retentions Bulletin to outline the new regime and answer common questions. This October, they released a second Retentions Bulletin to answer further questions raised at a webinar for NZIQS members, presented by Peter Degerholm of Calderglen Associates. Retentions Bulletin No.2 also provides an updated summary of the retentions regime, which we reproduce here.
The retention regime—in summary The regime incorporates the following last-minute changes that were introduced via the Regulatory Systems (Commercial Matters) Amendment Bill (RSB): • The regime applies only to retentions on contracts renewed or entered into on or after 31 March 2017 • Payers must, by default, hold retention money on trust in the form of cash or other liquid assets that are readily converted into cash, but may elect instead to obtain a ‘financial instrument’, such as insurance or a payment bond to provide third party protection. The following is a brief summary of the provisions of the retention regime, with references in subscript to the relevant sections of the Act. A full copy of the Act including all amendments may be downloaded free of charge from www.legislation.govt.nz References in the Act to ‘Party A’ and ‘Party B’ are substituted with ‘payer’ and ‘payee’ respectively. Retentions (‘retention money’) definition and application • The retention regime aims to provide protection for retention money CCA Subpart 2 Part 2A • Retention money is broadly defined s18A as ‘an amount withheld by a [payer] from an amount payable to a [payee] as security for the performance of [the payee’s] obligations under the contract’. It effectively covers any amount withheld or payment arrangement that acts as a retention. • As no minimum (‘de minimis’) amount has been specified in regulations s18B(2), the regime applies to retentions on all new, or renewed, contracts from 31 March 2017 s11A(3) • As the regime applies only to ‘commercial construction contracts’ s18B(1) it effectively covers all contracts or subcontracts, other than those directly with ‘residential occupiers’. Protecting retentions • There are now two ways for payers to protect the retention money that they withhold from their payees: 12
December 2017/January 2018
1. Default arrangement—money must be held on trust •
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Retention money must be held ‘on trust’ s18C(1) in the form of ‘cash or other liquid assets that are readily converted into cash s18C(2) The retention money held on trust does not need to be paid into a separate trust account, and may be mixed with other money in the payer’s accounts s18E(2) Proper records must be kept of all transactions s18FC The trust status of the retention money ends only when the retentions are paid out, the payee gives up its claim, or when the money otherwise is no longer payable under the contract or by law s18C(3) Retention money held on trust is not available for payment of the payer’s debts and cannot be taken by a receiver or liquidators 18FA Retention money can only be used by the payer to remedy defects in the payee’s performance of its contractual obligation s18E(1) Retention money may be invested at the payer’s risk in accordance with the Trustee Act 1956 s18F The payer must pay all costs in administering any trust s18I(1)(c)
IN FOCUS
2. Alternative arrangement—retention money may be protected by a ‘complying instrument’ • The payer does not need to hold retention money on trust to the extent that there is a complying financial instrument s18C(1A), s18D such as a bond or guarantee s18FB(5)
•
The instrument must: ° Be issued by a licensed insurer or registered bank s18FB(2 & 8)
° °
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Be issued in favour of, or endorsed with the interest of, the payee s18FB(3)(a) Require the issuer to pay retention money to the payee if the payer fails to pay when contractually due s18FB(3)(c & d) , provided that the payee complies with reasonable terms and conditions in making such claim s18FB(6) The payer is responsible for ensuring that all premiums are paid and up to date s18FB(4)
Requirements for accounting and records • The payer must keep proper accounting and records of all retention money s18FC(1) that comply with generally accepted accounting practice, are auditable, and show: - All retention money held on trust - All retention money protected by ‘instruments’ - All dealings and transactions in relation to retention money or instruments’ • - The payer must keep proper and readily verifiable records of all instruments s18FC(2) • - The payer must make records of accounting and instruments freely available to payees at all reasonable times s18FC(4) Interest on late payment • The payer will automatically be liable for interest at the contractual interest rate when retentions are released late s18G
Prohibited provisions of contracts • Any term of a construction contract will automatically be void s18I which: - makes payment conditional upon anything other than the payee’s completion of its contractual obligations - makes the retention release date later than the date when the payee has completed its contractual obligations - requires the payee to contribute to the cost of administering any trust.
Frequently asked questions These are just some examples of the questions answered in Retentions Bulletin No.2. To read the Q&A in full, go to www.nziqs.co.nz/Resources/Construction-ContractsAmendment-Act-2015
Q1: Can main contractors offset retentions on what is owed to them by clients against what they owe to subcontractors? A: No. The Act is clear that all retention money that is withheld by any payer in respect of a commercial contract entered into or renewed from 31 March 2017 must be held ‘on trust’. Q2: Does, say, a 40-unit residential complex get defined as ‘residential’ or ‘commercial’, hence falling into the trust? A: As there is no longer a ‘residential construction contract’, the answer lies in the definitions at section 5 of the Act: • A commercial construction contract is ‘a contract for carrying out construction work in which none of the parties is a residential occupier of the premises that are the subject of the contract’. • A residential occupier is ‘an individual who is occupying, or intends to occupy, the premises that are the subject of a construction contract wholly or mainly as a dwellinghouse’. Consequently a contractor who has a contract with a developer to construct a residential complex has a construction contract, as neither of the parties to that contract is a residential occupier. However a contractor doing fitout work for an individual apartment owner who occupies or intends to live in that apartment has a contract with a residential occupier, so the fitout contract would not be a commercial construction contract. Of course, a subcontractor working for the contractor in either case has a commercial contract, as neither of the parties is a residential occupier. Q3: Most banks issuing bonds insert an ‘on demand’ clause. Would this trump any need to notify under the contract? A: The Act refers to the retention bond as an ‘instrument’, and states: • The instrument must—… (b) require the issuer to pay the retention money to party B if party A fails to pay that money on the date on which it is payable under the construction contract… 18FB(3) • Nothing in subsection (3)(b) or (c) prevents the instrument from containing reasonable terms and conditions that relate to the manner or time in which party B must submit a claim 18FB(6)
A payer would be unwise to purchase a retention bond that was so open, as it could lead to the inappropriate calling-up of the bond. A payee should be required to demonstrate to the bank that the retention money is overdue, has not been paid, and that there are no reasons for the retention money not having been released. > December 2017/January 2018
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IN FOCUS
Q4: Who will withhold the retention money on the trust regime—the contractor or the client/owner? A: Whoever withholds retention money from a payee must hold that full amount on trust: • Any developer/owner/principal withholding retentions from a contractor • Any contractor withholding retentions from its subcontractors and suppliers • Any subcontractor withholding retentions from its subsubcontractors and suppliers. Q5: Retentions is only relevant to commercial projects and not residential projects. What about mixed use projects? A: The definition of a commercial construction contract merely distinguishes contracts with residential occupiers from all other construction contracts. In short, every contract is a commercial construction contract unless the client is a residential occupier (ie, home owner). See also Q2 above. Q6: Is the provider of bond instruments a third party accounting firm or a bank? A: As to the provider of the bond instrument, the Act states: • The issuer of the instrument must be— (a) a licensed insurer; (b) a registered bank; (c) any other person, who is not an associate of party A, prescribed or within a class prescribed in regulations 18FB(2) Under (c), any such instrument must be provided by a registered bank or licensed insurer. The bond instrument is an option for payers who do not wish to hold retention money on trust. Q7: Does GST on retentions need to be held? A: This is a question for an accountant, but a layman’s view suggests that in practice only the GST exclusive amount shown in payment schedules would be held on trust, and that the matter would only arise in the event of liquidation. As IRD hold the balance of any GST transactions, the payment by a liquidator of retentions held in trust to a subcontractor will be plus GST, and the company in liquidation would need to cashflow the GST component and claim it back from IRD. This will undoubtedly be a matter for the courts to deal with, particularly where the payer was hopelessly insolvent. Q8: Why should principals and main contractors hold performance retentions when progress payments are assessed against performance? A: It is difficult to say definitively why, but some parties may
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see it as a safeguard to enforce performance. In any event, the Act only provides security for retention money that is withheld, but does not advocate a view on the merit or otherwise of retentions. Q9: Where bank funding is involved, does this mean the value of retentions should be drawn down and then held in a trust account? A: Yes, except to the extent that the payer provides a bond instrument from a bank or insurer. There is no requirement to establish a separate trust account with an accountant or bank: • Retention money held on trust may be held in the form of cash or other liquid assets that are readily converted into cash s18C(2) However, the trust status of the retention money must be clear, auditable and traceable at all times: • [A payer] must keep proper accounting records of all retention money that— (a) correctly record— (i) all retention money held on trust; and (ii) all amounts of retention money protected by instruments issued for the purpose of this subpart; and (iii) all dealings and transactions in relation to retention money or instruments; and (b) comply with generally accepted accounting practice; and (c) are readily and properly auditable. s18FC(1) Q10: Where do I get further information? A: If you are a payer, you should take specific advice from your accountant, lawyer and bank in order to ensure that you comply with the regime and can meet your cashflow requirements. MBIE also has information on the retentions regime. ■
About the author: The Retentions Bulletin No.2 was issued by the New Zealand Institute of Quantity Surveyors, Registered Master Builders and the Specialist Trade Contractors Federation. They acknowledge the contribution of Peter Degerholm of Calderglen Associates Ltd in preparing the information in the bulletin.
Disclaimer The changes to the retentions regime are new and therefore the above information is preliminary and may be subject to change. This document is for general information purposes only and is not intended as specific legal or accounting advice. We recommend that each company and its directors obtain specific legal and accounting advice before taking steps towards complying with the new regime. While all reasonable care has been taken in creating this document, the authors do not give a warrantee of reliability of accuracy or accept responsibility for any errors or omission.
Julian Parker from The Lewis Plumbing Co Rotorua
#loveplumbing Branches Nationwide. Freephone 0800 800 686 | www. plumbingworld.co.nz
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IN FOCUS
At the half-yearly There was a packed agenda at the Master Plumbers half yearly meeting in October, including presentations from the PGDB and Skills. REPRESENTATIVES FROM MASTER Plumbers nationwide Branches and Associations attended the half-yearly meeting in Wellington this October. The day began with economic insights on NZ’s construction industry by Gareth Kiernan, Chief Forecaster at Wellingtonbased economic consultancy Infometrics.
Advocacy work
Master Plumbers CEO Greg Wallace followed up with a report on the advocacy work being undertaken by the Society. Master Plumbers is represented on the PGDB Stakeholder Liaison Group, which meets every quarter to provide feedback on PGDB initiatives and discuss industry issues. The Society has also had significant input into the development of the new apprentice qualifications, working with Skills and the PGDB on proposals for change that will come into being in 2018. A major project currently underway is the revision of the AS/NZS 3500 Standard series. Master Plumbers is the only organisation to represent NZ installers on the committee for this joint Australian/ New Zealand Standard (see p36). Greg had also been in discussions with the Australian Master Plumbers Associations around plumbing product quality concerns. BRANZ would be consulting with Master Plumbers and researching the Australian WaterMark certification scheme to inform its upcoming report on the potential risks posed by substandard plumbing product in New Zealand.
Greg has recently been appointed Vice President of the Specialist Trade Contractors Federation 16
December 2017/January 2018
Greg has recently been appointed Vice President of the Specialist Trade Contractors Federation, of which Master Plumbers is a member. The Federation is currently lobbying strongly for better administration and policing of Standards in New Zealand.
Code of Conduct updated
The Master Plumbers Code of Conduct has recently been revised to include reference to the Quality Assurance process and to ensure members behave in a professional, fair and transparent way with other members. “Poaching apprentices from other members is behaviour that falls outside the Code,” said Operations Manager Margaret Dawson. “If cases of this are brought to our attention, we will investigate them.” The Master Plumbers Guarantee Rules had also been updated to reflect a clarification proposed by the Wellington Master Plumbers at the 2017 AGM. If a Master Plumbers undertakes work he is not certified to do and chooses to use a non Master Plumber to certify the work (whether for payment or not), the customer will still be covered by the Master Plumbers Guarantee. However, the Master Plumber will be fully liable for any workmanship issues that arise from the completed work. “It is our strong preference that members only use another Master Plumber to certify any work they have done that sits outside the scope of their own certification,” said Greg.
Quality Assurance & training
Margaret Dawson outlined new steps for the Quality Assurance process. The review of businesses prior to joining would continue, as would the annual Quality Assurance Declaration—though members would now be expected to submit these by the end of February each year instead of November. An ongoing Quality Assurance
Above: Networking after the event.
assessment of member businesses would launch in January 2018. Random reviews of no fewer than 15 percent of the membership would be conducted each year, with support provided to businesses that weren’t reaching the quality benchmark. The revitalised Master Plumbers training timetable had been well received in most regions, said Margaret, with technical courses currently better attended than ‘soft skills’, such as customer service and marketing.
Marketing focus
During the year, Joanne Caine had joined Master Plumbers in the new role of Communications & Marketing Advisor. A comprehensive marketing plan had been developed for both Master Plumbers and Masterlink for the year ahead. This would include a refresh of the Don’t Risk It consumer campaign and the roll-out of the Master Plumbers Recommends product endorsement initiative. An online marketing strategy was also to be developed. ■
IN FOCUS
PGDB progress At the half-yearly, Plumbers, Gasfitters and Drainlayers Board (PGDB) Chief Executive Martin Sawyers acknowledged the good working relationship between the PGDB and Master Plumbers. The issues in focus for the PGDB, he said, were CPD, apprentice training, unauthorised work, registration and licensing fees, and better utilisation of new technology for online registration processes.
closely with Master Plumbers and Skills to develop the new apprentice Level 4 qualifications. Although these were primarily the responsibility of Skills, the PGDB had a key interest in ensuring the competency of tradespeople, he noted. From June 2018, the PGDB’s Tradesman registration exams would be offered more regularly and in electronic format as an integral part of the Level 4 qualification.
CPD sessions The second year of face-to-face CPD sessions had been successfully completed and the online version was now available for those who hadn’t attended this year’s roadshow. The PGDB had already picked topics for next year’s roadshow, including:
Unauthorised work There were two categories of unauthorised work, said Martin: work carried out by qualified tradespeople without a current licence, and work carried out by unqualified people. Whilst a warning was usually sufficient for the first category, the PGDB had no sympathy for the second, he said. With concerning levels of unauthorised work being carried out in some areas, particularly in Auckland, the PGDB had run a consumer education campaign on sorting ‘the pros from the cons’. In 2018, they would translate the campaign into other languages to reach immigrant consumers, whilst also
• • •
innovative new products and systems consumer relations and handling complaints supervision.
Apprentice qualifications Martin said the PGDB had worked
Above: PGDB Chief Executive Martin Sawyers provided a presentation at the half-yearly meeting.
supporting immigrant tradespeople to follow the New Zealand pathway to qualification and licensing. Fees review The PGDB’s three-yearly review of registration and licensing fees was due in 2018, with the new fees coming into effect from 1 April 2019. Industry comment would be sought and it was hoped to keep the fees at the same level as they were currently, he said.
Training our trades Skills Organisation representatives Lance Riesterer and Di Lithgow attended the meeting to outline key activities in apprentice training for our trades. 1. Apprentice volumes As at October 2017, Skills had had approximately 800 new PGD apprentice enrolments during the year—and forecast more than 1,000 by the end of the year. There had been massive growth over the last two years, said Lance Riesterer, with a 20 percent increase in the number of trainees under Skills management in the past three years. The main growth had been in the ‘golden triangle’ of Auckland, Hamilton and Tauranga, he said. With increased numbers of apprentices
Left: This diagram compares the current apprentice qualification process (top) with the new version. The PGDB Tradesman exam will be embedded in the new PGD Level 4 programme, and a Skills Week introduced at the start.
came increased demand for block courses, and the total numbers held had almost doubled between 2013 and 2017. 2. Apprentice qualifications The goal of the proposed new PGD apprentice qualifications was to improve consistency and credibility, said Di Lithgow. The new programmes had required a great deal of time and effort, with around 30 people in total involved in the programme development. “Our goal is for the programme to have
nationwide consistency,” said Di. “From the training and assessment resources to the off-job training delivery and qualification outcomes, the programme should be the same wherever you go.” 3. Programme delivery review Also on the agenda at The Skills Organisation was an independent review of PGD programme delivery, with comparisons to be drawn between the NZ and Australian models. ■
December 2017/January 2018
17
REAL LIVES
Second to none! Julian Parker of Lewis Plumbing in Rotorua has won the coveted title of Young Plumber of the Year in Plumbing World’s inaugural competition. Shelley Burt talks to Julian and his boss Jon Lewis about the experience.
“IT DOESN’T MATTER what work you undertake, if you can stand back and look at how you could have done it better, that naturally leads to better results,” says Jon Lewis of Master Plumbers member business, The Lewis Plumbing Company in Rotorua. Jon is referring to his employee, Julian Parker, 25, who recently won Plumbing World’s 2017 Young Plumber of the Year Competition. According to Jon, Julian has never failed to rise to the challenges that come his way. He has the respect of his colleagues and workmates, and shows strength of character and the ability to adapt to new situations, making him a recognised leader within their business. “Julian’s core values resonate with the company values of honesty and integrity, and so his development into an exceptional plumber has been a natural transition,” says Jon. Julian started on his apprenticeship when he was just 17. After a stint in post-earthquake Christchurch, he returned to Rotorua and joined Lewis Plumbing three-and-a-half years ago as a Tradesman Plumber. He is now a Certifying Plumber, a Tradesman Gasfitter and working towards becoming a Certifying Gasfitter in 18 months’ time. “I enjoy the diversity—whether it’s a tricky issue, or new builds, or commercial,” says Julian. “Every day is different, and you meet different people: builders, customers, suppliers. I also enjoy undertaking work I’ve never done before and just learning from it.”
Above: Julian back in Rotorua with his Milwaukee power tool pack—just one of heaps of prizes he received for winning the competition.
“It was awesome”
The first round of the competition and Regional events were held at local Plumbing World branches. Julian won first spot at his local Rotorua branch, with the company’s two apprentices, Dave and Ben, gaining third and fourth. At the Regional event in Tauranga, he again secured first place. Then came the Final, held at Wintec in Hamilton. “Like the two other events, we did a theory exam followed by multiple practical assessments on new products, most of which we hadn’t seen before,” says Julian. “Everything had to be done faster now. There wasn’t enough time to answer all the questions in the theory exam, so you did what you could as fast as you could! The three-hour practical exam was setting up a small unit (like a bathroom) with a hot water cylinder, drainage and fixtures. It was like having 100 customers watching over your shoulder as you work!” But Julian wasn’t fazed. “It was awesome. The whole experience was amazing. I knew it would be tough, but it was a lot more competitive than I expected. And quite tricky. I took a lot away from it—you get to meet some good people and learn about the industry. Most entrants I’ve spoken to want to do it again.”
Achieving goals
Above: Julian (centre) with Hayden Findlay (left) of Quix Commercial/Eco Plumbing Ltd (2nd place) and Josh Ratten of Layne Watson Plumbing (3rd place)—all Master Plumbers' member businesses. 18
December 2017/January 2018
Julian is grateful to Plumbing World for organising the event and believes the competition furthers knowledge by testing your skills, learning how to use things you haven’t used before, and for comparing how your skills stand alongside others in the industry. “I’d also like to thank the suppliers, sponsors and organisers for making the event possible.” “Julian’s success has given our other young plumbers future goals they may not have realised they could achieve,” says Jon. “It’s important that the plumbing industry recognises our future young plumbers. I’d like to thank Andrew Lewis from Rotorua Plumbing World branch for his support in getting all of my young plumbers to the competitions.” Whilst part of the prize package is a luxury trip to Plumbing World’s overseas convention in Fiji for Julian and his partner, Shannon, Julian says, “I would have done this purely for the experience. The whole time I really wanted to compete to meet people in the industry.” ■
2017 CPD ROADSHOW
UTE WINNER
For the second year running, attendees to the PGDB/Mico CPD Roadshow could enter a draw to win a much-needed workhorse in the form of a Ute. This year’s lucky winner of the Mitsubishi Triton Double Cab Ute, worth nearly $54,000, was Lai Hansong (also known as Gordon) – a plumber/ gasfitter from Auckland. He’s already taken his new Ute for a test run in the country side on some rocky terrain (where it got the thumbs up) and is enjoying the extra space for his work gear.
Clockwise from top left: Suffice to say our winner was very pleased with his prize!; Making it official!; Paul Carrington, National Sales Manager – Mico, seen here handing over the keys to Gordon.
PLANNING AHEAD FOR 2018 The team at Mico are already well into planning for the next roadshow, kicking off in May. As always, key learnings and feedback are taken on board as we aim to offer members an even better hosting experience next time around.
Based on industry feedback, the PGDB are introducing presentations on innovative new products and Mico are excited to be working with the board in bringing this to the 2018 roadshow.
0800 101 999 | www.mico.co.nz
CPD 2018
TECHNICAL THEME
WASTEWATER TREATMENT This edition's spotlight is on wastewater treatment system design and installation. In this section
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On-site sewage treatment Treatment for Auckland Pressure sewer networks
December 2017/January 2018
WASTEWATER TREATMENT
On-site sewage treatment Australian on-site sewage treatment company CSS has come up with a new solution for upgrading commercial plants. Managing Director Stephen Pereira explains. RURAL AUSTRALIA HAS many private sewage treatment plants, especially in regional tourist belts, such as the Yarra Valley, Great Ocean Road and Mt Dandenong. These small, off-the-shelf plants service restaurants, wineries, hotels, convention centres, mining camps and caravan parks, amongst other commercial premises. Most plants discharge to the land via irrigation systems, or to a river. Treatment plants of this kind started appearing from the mid to late 1960s, when regulations demanded better levels of environmental protection. Numerous variations are available, but all are based on the same simple biological process: 1. Biological treatment of solids (no air/anaerobic) 2. Biological treatment of liquid (with air/aerobic) 3. Separate water from beneficial bacteria 4. Disinfect cleaned water.
• •
Overloaded disinfection system Elevated solids, BOD and bacteria.
Elevated concentrations of any or all of these can be incredibly damaging to the environment, and are targeted by the Environment Protection Authority for obvious reasons.
Options limited
Short of replacing the whole plant—with the accompanying business disruption—the options available to small plant operators have been limited. They are either prohibitively expensive, due to the chemicals and operator time, or don’t achieve what’s required. Combined Separation Systems (CSS) has investigated this issue and applied a fresh approach based on recent development work conducted by the company in the industrial space. The result is a world-first, patent pending membrane/UV package plant that requires minimal operator time and expertise. For many years, membrane has been the best available technology worldwide for achieving step three of the treatment process. However, until now it has required a team of full-time engineers and technicians to run the technology.
Membrane/UV package
The new membrane operating system from CSS doesn’t eliminate maintenance but does Above: Cleanstream is a world-first minimise it, and doesn’t need specialist membrane/UV package plant, developed training. The UV disinfection is also by Australian company CSS. Ageing systems extremely effective, due to the clarity of the Borderline compliance for ageing effluent produced by membrane treatment. systems is becoming a typical scenario, The package has been designed as a bolt-on for existing as Australian regulators grow more vigilant and determined to plants, or can be built into new installations, and the company’s enforce discharge limits—with some in the hospitality industry team of consulting engineers and maintenance crew provide facing the harsh reality of shutdown. initial assessment and ongoing support. ■ The Australian public is now also more aware of the environmental and health impacts, and becoming more vocal on the topic. Poor performance is typically caused by the final two stages About the author: Stephen Pereira is Managing Director of Combined of the treatment process, mostly associated with controlling the Separation Systems (CSS). His background is in the Australian consulting industry, working with industrial clients ranging from small manufacturing dominant bacteria species. Only certain bacteria will settle to outfits to multi-national alumina refineries. In all cases, achieving actual the bottom of a tank when it is time to discharge the cleaned improvement was primarily inhibited by cost and the availability of water. Gravity-based separation systems require specific technology. It is for this reason he teamed up with long-term colleagues to form CSS and take on the challenge of developing and manufacturing bacteria. solutions that fit within a reasonable budget, yet provide a real sense of The result of poor performance is an effluent that still improved environmental performance. www.cssystems.com.au contains a high level of bacteria, which causes: December 2017/January 2018
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WASTEWATER TREATMENT
Treatment for Auckland
Orua Bay Motor Camp has become the first site in the Auckland area to install an AES on-site wastewater treatment system. THE AES (ADVANCED ENVIRO-SEPTIC) system at Orua Bay Motor Camp was designed by engineer Fraser Walsh of Ground Consulting in conjunction with NZ distributor Environment Technology (ET), and installed by Waiuku drainlayer Jim Douglas. Property owner Jim Caldwell chose the system as it suited the small site, was visually unobtrusive, low maintenance and has limited effect on land usage. The existing septic tanks have been retained as part of the upgrade. ET introduced the system in 2013. The AES bed can disperse the effluent, as in this situation, or it can be dispersed through dripper irrigation. “AES provides treatment quality which easily meets NZ Standards while minimising the risk of groundwater contamination and preventing the receiving soil from becoming clogged over time,” says ET Director Dick Lamb, who also attended the installation. To date, four other campgrounds in the South Island have installed the system: Lake Okarito, Paringa and Hokitika campgrounds on the West Coast and Greenwood Park Holiday Camp in Nelson, where the system has been installed under the parking area. “You can put it under a hard surface and utilise every bit of land you have,” says Greenwood Park owner Chris WhiteJohnson. “With the old sand filtration system, you had to isolate a whole area and so lost a lot of available space.” For Ian James of Okarito Campground, the advantage of the system was the ability for it to be installed above ground to overcome the high water table. Peter Blight of Hokitika Campgrounds says the system allows large variations in daily loading and intermittent usage, and provides a quick start-up after periods of non-use. AES can be up-scaled or downsized to suit the application, from single dwellings to schools, marae and commercial installations. Subdivisions can use individual systems or a larger de-centralised AES system that services several dwellings. AES treats wastewater by providing a habitat for microorganisms to self-colonise within passively aerated pipes, installed in a bed of sand or recycled crushed glass. The product has just completed initial testing at the National Testing Facility, OSET in Rotorua, where preliminary results are confirming advanced secondary treatment quality, in line with previous overseas testing. AES has been installed in over 400,000 sites worldwide. In New Zealand, over 300 systems have been installed and ET offers free training for designers and installers nationwide. 22
December 2017/January 2018
Top: Preparing the ground for the pipes. Above centre: The pipes laid. Above: Installer Jim Douglas (left) with ET director Dick Lamb.
proof that not all Crushed glass sand Richard Reay recently designed and installed an AES wastewater treatment system at his Rangiora home. He also became the first in the country to use recycled crushed glass for the system ‘sand’, “because it is the cheaper option and because it’s better for the environment, but performs just as good a job as 2A sand from a gravel pit”. Richard wanted a system that didn’t require any external energy input or regular servicing, and called in Grant Wooster of Dynamic Drainage from Rolleston to Above: Designer and installer help install the system. Richard Reay. Fulton Hogan in Canterbury produces and supplies 2A crushed glass sand that meets the AES sand specification. “This is great news to have a suitable use for recycled bottle glass,” says Dick Lamb of Environment Technology (ET), distributors of AES in New Zealand. “It also means installers and other homeowners have another costeffective option when looking for a suitable aggregate.” AES system components are also made with significant quantities of recycled plastic. The system treats wastewater using self-colonising natural microorganisms within passively aerated pipes installed in sand or a recycled glass bed. Effluent is treated to advanced secondary quality before passively dispersing into the soil. The installation is easily adapted to smaller or larger wastewater flows, says Dick, and systems are in place globally from 400 litres per day up to 200,000 l/day in a communitywide application in the US State of New Hampshire. AES can be retro-fitted to existing septic tanks as an upgrade if the existing disposal field has failed. ■
Above left: Pouring the crushed glass. Above right: The pipes covered—another 150mm of sand and 150mm topsoil to be added.
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WASTEWATER TREATMENT
Under pressure
Ecoflow's Derek Teensma explains how pressurised sewer systems and networks are used around the world for their ability to service any type of ground condition. ORIGINALLY DEVELOPED TO The resilience of a pressure sewer replace failing septic systems, network is most apparent by its high pressurised sewer networks can now be strength and flexible reticulation. found in hilly, rocky, flat, unstable, and Polyethylene pipe sizes range from DN wet ground conditions. 40 to DN 225, depending on the number Pressurised systems use specially of pumps connected and the distances designed pumps at each property. These required. Similar in construction to a water grinder pump units reduce any solids main, the network follows the ground into slurry and pump it through a small movement without breaking, collapsing or diameter polyethylene pipe into the separating. Additionally, since the network Above: Telemetry controllers give councils network. The semi-positive displacement is buried shallow (between 1-1.5m deep), control of their pressure sewer networks. pumps then push the slurry via the network additional connections can easily be made kilometres away, either to an existing gravity network or with minimum cost and time. wastewater treatment plant. Because transport is done under pressure, there is no need for grade/fall on the network and no Remote control pressure sewer networks need for expensive public pump stations. There are now telemetry controllers that give councils complete
grinder pump units reduce any solids into slurry and pump it through a small diameter polyethylene pipe
control of their pressure sewer networks. This is achieved by the system controller communicating via a cellular network to an online portal. This can then be accessed via a smartphone or desktop computer. This allows councils to improve customer service, fix faults as they arise, and improve efficiencies. The simple nature of low pressure sewer makes the ongoing
Above: Cutaway of an EcoFlow EOne grinder pump.
Above: Replacing the pump takes no more than 15 minutes.
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December 2017/January 2018
WASTEWATER TREATMENT
operation and maintenance easily manageable. Since the equipment is specifically designed for the application, it is extremely reliable and does not require any preventative maintenance. In the event of a pump issue or homeowner misuse, most issues can be quickly resolved with online or onsite troubleshooting, and replacing the pump takes no longer than 15 minutes. Due to the 24-hour storage available in the pump chamber, the remote monitoring will allow a maintenance contractor to determine when a technician should attend the site. Due to the straightforward nature of the technology, operators have no trouble understanding how the system works. There are no complicated Above: 3D of the EcoFlow control systems or single critical Simplex system. assets to maintain. New Zealand now has over 10,000 pressure sewer systems operating in over 20 pressure sewer networks nationwide. ■
Benefits of pressurised systems • • • • • • • •
Sealed system, no infiltration—lower impact on treatment plant capacity Minimal maintenance of network—no manholes or large public pump stations More resilient to seismic activity, such as ground movement and liquefaction 24 hours of storage at each home Pumps are simple to operate and maintain High water table—reduces dewatering and project risk Lower cost of reticulation—lower material costs and shallower trenching Staged build out and capital cost savings.
24-hour storage available in the pump chamber About the author: Derek Teensma is Business Development Manager at Ecoflow, which, since 2007, has been the only specialist pressure sewer company in New Zealand. For more information on pressure sewer systems or networks, contact info@ecoflow.co.nz; www.ecoflow.co.nz.
Siphonic solution Occupying 42,000m2 of the Christchurch central business district, the new Justice & Emergency Services Precinct presented some unique plumbing challenges—particularly when it came to the roof.
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December 2017/January 2018
Photograph by Neil Macbeth.
PROJECT SPOTLIGHT
BY THE END of this year, all Christchurch justice and emergency services are expected to be brought together in the new purpose-built Justice & Emergency Services Precinct. The precinct, which will be used by around 2,000 people each day, is the first major public building to be built in Christchurch by the government since the earthquakes of 2010 and 2011. John Leen Plumbing worked for main contractor Fletcher Construction on the project, having strategically set up a new JLP division in Christchurch in late 2013. JLP initially tendered and won the in-slab and civil works—which they started in mid 2014—before securing the full plumbing package for the balance of the building. At this point the firm sought products, planning and design expertise for the Marley Akasison Siphonic Drainage system.
Behind the scenes
As Marley’s NZ-based National Technical Sales Engineer, Steve Skidmore and his team assist professionals in carrying out siphonic designs locally and liaising directly with expertise within the wider Aliaxis group (Marley’s parent company), which has 15,700 staff Above: Marley National across 40 countries. Technical Sales Engineer “The Achilles heel of other Steve Skidmore. siphonic systems is the design team being offshore, often delaying installs when changes are required,” says John. “Marley’s behind-the-scenes support team are always exceptionally helpful with technical answers and support.” “The precinct buildings are complex, with inputs and requirements to consider for all disciplines,” says Steve. “JLP’s use of Building Information Modelling [BIM] meant coordination between the requirements of architecture, structural, plumbing, mechanical, electrical, data and HVAC could all be modelled in advance to secure a route for siphonic pipework through the ‘busy’ building ceiling spaces and service risers.” The software allowed JLP to create the full plumbing install in conjunction with the structure and other sub trades, and review the clashes on desktop in 3D. “This is an exceptionally good process to ensure the bulk of the works are coordinated prior to site install,” says John. BIM enabled JLP to install major pipe runs very early in the construction stage, working around other trades without major conflict issues.“Like all new technologies, there were some fish hooks, so to speak, but they were well outweighed by our ability to get in front of the installation programme. “The greatest learning is that you need everyone in the waka paddling in the same direction. If a section of work is not modelled, then you don’t know that you might have a clash.”
Size and seismic
A lot of the complexity came down to the sheer size of the project—and Christchurch’s high seismic activity brought with it additional requirements. The allowance for movement in the design of the buildings meant the many soil, stormwater, water Opposite: Siphonic roof drainage is a feature of the new Justice & Emergency Services Precinct in Christchurch.
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simpro.co.nz/tool-plumbing
PROJECT SPOTLIGHT
and gas pipes that crossed this plane also had seismic considerations. As John explains: “They had to have seismic joints installed from fixed-up to fixed-down—literally hundreds of them—which also meant all in-ceiling services had to have seismic restraints and hangers Above: John Leen of John Leen Plumbing (JLP). The fitted, so in a major seismic event, Christchurch division secured these services not only survive but the in-slab, civil works and continue to operate. plumbing package on the project. “This meant there was significant emphasis put into services having dual standby and duty type, including dual water supplied from adjacent streets, water storage supply tanks, sewer storage tanks, dual gas supplies, backup power supply via generators, fire system backup supply, and various security, data, communications and BMS type support.” With the project’s size also came the complication of getting sufficient staff. At the height of the project, JLP had around 30 staff onsite at one time, including contracts admin, quality assurance, site foreman and a variety of trades. This included around 12 Filipinos, four Frenchmen, various English and Irishmen and a base of Kiwis. “If it were not for our ability to employ overseas immigrant tradespeople, we could never have completed this type of project,” says John.
Roof and ceilings
Over 9,000m2 of roof area meant heaps of gutters and outlets, somewhere around 2.5kms of pipe, the equivalent Unirail support system, and around 110 outlets, all acoustically wrapped, seismically supported, air tested, then water tested from ground to flood level. JLP also installed a complete Marley uPVC overflow secondary path system to deal with any water if for some reason all siphonic outlets managed to get blocked. “The roof areas were all dual layer torch-on products which also determined the minimum falls from high points to outlets in the box gutters,” says John. “This kept all the outlets at approx 8m centres, so the fall in the gutters maintained the torch-on guarantee requirements. “The Akasison siphonic system allows you to run all the horizontal pipes in the ceiling space level, so with the size of the building that meant very long runs, which, if falls were required, would have meant most of the system would be hanging through ceilings! “Pipe runs with no falls excites architects and consultants, as this means less space required for services and high ceiling heights.” The system is concealed and drains water rapidly, siphoning through small pipes close to the roof to maximise space, allowing more flexibility for routing of pipework, and giving more usable space inside the building due to small pipework that can be installed horizontally with zero gradient. ■
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December 2017/January 2018
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REAL LIVES
Repair by robot In a medical first for New Zealand, drainlayer Adam Squire recently underwent robot-assisted knee surgery. He talks to Matthew Lowe about the experience. ADAM SQUIRE CAN only bear to watch a few minutes of his role in making New Zealand medical history before the sight of his own blood makes him look away. This year, the drainlayer from Glenfield in Auckland became the first patient in the country to receive a robot-assisted partial knee replacement operation. The medical team at North Shore Hospital gave him a USB stick with footage of the surgery but Adam, 52, admits he has been unable to watch a rerun of the 90-minute procedure. “They had to cut out a bit of bone and I was given a full anaesthetic and epidural for the operation,” he says. “I watched the first couple of minutes of the video once, but the moment the blood and bone started flying I turned it off. It would be different if it was someone else on the screen but when it’s your own blood it’s not great to watch. I’m not really sure why I asked for a copy of it now.”
US technology Adam was operated on using a Mako Unicompartmental Knee Replacement (UKR) system in which a surgeon guides a robotic arm to perform the procedure. The technology, bought from the US by Waitemata District
Health Board, is designed to be less invasive for patients, to reduce the amount of trauma and should lead to a faster recovery time. Adam spent only one night in hospital after his August operation and was back at work with Takapuna firm Galbraith Plumbing and Drainage two weeks later. People who have the standard procedure would usually need a month off work. “The knee is still sore and I’m limping but the surgeon has said it will be 12 months before I am 100 percent,” he says. “I was back at work in two weeks but I wasn’t on the tools and diving into trenches. I have been in the digger, driving, quoting and getting round our different sites.”
Test candidates Adam, a father-of-three, required the high-tech treatment after an injury in a motorcycle crash and the effects of osteoarthritis had seen his knee deteriorate over the years.
I was back at work in two weeks but I wasn’t on the tools and diving into trenches
Above: Adam Squire back at work after having the country’s first robot-assisted partial knee replacement surgery. 30
December 2017/January 2018
v
Above: Waitemata DHB’s Matthew Walker with the Mako Unicompartmental Knee Replacement system.
“A lot of the problems with the knee were wear and tear, but a lot also came from a motorcycle accident in 1993. I damaged the knee then and it has got worse and worse over time. The inside of the knee had essentially worn down to bone on bone,” he says. “The surgeon said the knee needed to be operated on and he brought up the robotic surgery and seemed to think I was the perfect candidate because of my age and the fact that I was still working. “First up I was a little nervous when they mentioned the robotic arm, but they said they have done millions of these operations around the world—it’s just we’re a bit behind here in New Zealand.” Adam’s operation was the first of an estimated 60 per year that will be carried out at the North Shore Hospital as part of a study designed to compare results with current practice. Patients involved in the research will receive regular post-operative checks in the 10 years after their surgeries. Waitemata DHB orthopaedics Clinical Director Matthew Walker, who operated on Adam, says the UKR system “allows consistently accurate placement of implants which ultimately means better outcomes for patients”. “It reduces the magnitude of the surgery and improves the longevity of the implant, resulting in a shorter stay in hospital, earlier mobilisation, less pain, a greater short to mid-term outcome and increased patient satisfaction.”
Looking to the future In the future, North Shore Hospital will look at using the robot for other knee operations and possibly hip replacements. After the surgery Adam had six weeks of regular physiotherapy to ensure he was getting mobility back into the joint and since then has “been pumping the exercise cycle and trying to walk as much as possible”. He says he is looking forward to being able to walk pain-free again and enjoying time with his three grandchildren. “The knee is feeling better week by week. It feels stronger than it has felt in a very long time and it is nice to know I can go back to the beach with the grandkids and be able to enjoy activities with them as they grow up.” ■
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NUTS & BOLTS
Soak pits When a soak pit is required, a building consent application with calculations for pit sizing must be lodged. So, how do you make the calculations? By Alide Elkink. SOAK PITS, ALSO known as soakaways or soakage pits, are required for properties with no reticulated stormwater system provided by the council for removing water run-off from roofs and hard sealed surfaces. They can be: • a hole filled with rocks (see Figure 1) • a lined underground chamber with porous sides and base (see Figure 2), into which surface water can drain and be dispersed by percolation or soakage into the surrounding soil • a series of factory-made plastic drop-in modular interlocking infiltration cell blocks wrapped in geotextile fabric. All options must be lined with a filter cloth with a mass per unit area of 140 grams/m² and a minimum thickness of 0.45mm. In addition to water dispersal, a soak pit must also provide water storage to ensure water that drains into the soak pit will not overflow before soakage has occurred. Their efficiency depends on their size, the permeability of the ground (the rate at which soakage occurs) and the rainfall intensity of the region.
Above: Figure 1 Rock soak pit.
Building consent required Where a soak pit is required, a building consent application with calculations for soak pit sizing must be approved by the building consent authority. Guidelines for soak pit design, including sizing, are provided in Verification Method E1/VM1 to New Zealand Building Code clause E1 Surface water, or can be obtained from your local council.
Steps for designing a soak pit The first step in designing a soak pit is to determine the soakage rate of the natural ground. This is done by conducting a percolation test and, from the results of the test, determining the soakage rate. Conduct a percolation test E1/VM1 provides a percolation test method in paragraph 9.0.2. Percolation testing should be done when the groundwater is high and is carried out as follows: 1. Drill a test hole 100–150mm in diameter for the expected depth of the soak pit. If groundwater is struck before the expected depth is reached, the depth of the ground water is taken as the maximum depth of the soak pit. 2. Fill the hole with water and maintain it for at least 4 hours to presoak the ground. 3. Refill the hole with water to 750mm below the ground level (if possible). 4. Measure and record the drop in water level at 30-minute intervals maximum until the water is approximately 250mm from the base of the hole or for 4 hours, whichever occurs first. 5. Plot the results of the fall in the water level against the time it takes on a graph. Determine the soakage rate Using the results of the water level drop rate from the minimum slope of the curve on the graph over a 10-minute period, determine the soakage rate (mm/hour) using the formula: soakage rate (Sr) = 6 × (water level drop in mm) / 10 minutes. Where there is a significant decrease in soakage rate as the hole empties, disregard the lower rates and use a value closer to the average. Calculate volume of storage required Once the soakage rate is determined, the volume of storage required (in m3) can be calculated according to the formula given in E1/VM1 paragraph 9.0.5 as follows:
Above: Figure 2 Chamber soak pit. 32
December 2017/January 2018
Vstor = Rc - Vsoak where
Rc = run-off from catchment to soak pit in 1 hour (m3)
Vsoak = volume disposed of by soakage in 1 hour (m3)
and
Rc = 10 CIA
where
C = run-off coefficient (from E1/VM1 Table 1)
I = rainfall intensity (mm/hr) based on 1 hour duration of an event having a 10% probability of occurring annually
A = area (in hectares) of the catchment
where
Asp = area of the base of the soak pit (m2)
Sr = soakage rate (mm/hr).
discharging to the soak pit and Vsoak = AspSr/1000
Rainfall intensity (I) is based on rainfall with a 1 hour duration and a 10% probability of occurring annually. Information about rainfall intensity can be obtained from local rainfall intensity curves produced by the building consent authority or from rainfall frequency duration information from NIWA.
Ways to reduce soakage capacity The effectiveness of soak pits can be increased by storing or retaining stormwater on site with water storage tanks, areas planted in trees and shrubs that soak up water and irrigated areas. When these are incorporated, the soakage capacity of a soak pit may be reduced if supporting calculations are provided.
Check for other council requirements Soak pits should be located above the winter water table and not on a stormwater secondary flow path. Most local authorities have specific requirements for soak pits, such as minimum distances from boundaries and existing buildings. These should be checked before making a soak pit application.
Soak pit maintenance needed annually Soak pits require maintenance to prevent them becoming blocked with silt, vegetation or other matter that may cause flooding problems. Maintenance and cleaning should be done annually by a company that specialises in the cleaning and maintenance of soak pits. Calculate soakage rate and storage Use the E1/VM1 formula: Vstor = Rc - Vsoak Step 1: Get the soakage rate from the percolation test Assume that, from a percolation test, the soakage rate (Sr) has
been calculated at 300mm/hour. Then, where the soakage rate is: • more than 500mm/hour, soakage rather than storage is the main factor in the design of the soak pit
•
significantly less than 500mm/hour, storage becomes the main factor in the design around 500mm/hour, the soak pit design must consider both soakage and storage to make sure that water will
•
disperse into the ground before it overflows. Step 2: Assess the stormwater catchment volume (Rc) Use the formula: Rc = 10 CIA Assume:
Roof area = 200m2
Paved area = 50m2
Total run-off area (A) = 250m2
(0.025 ha)
Use run-off coefficient (C) = 0.9 (from E1/VM1 Table 1 for hard surfaces) Rain intensity (I) = 70mm/hour Rc
= 10 CIA
Rc
= 10 × 0.9 × 70 × 0.025
Rc
= 15.75m3
Step 3: Calculate the volume of water disposed by soakage (Vsoak) Use the formula: Vsoak = AspSr/1000 Assume:
Soak pit size = 5.0m × 3.0m × 2.0m
= 30m3
The soak pit is to be a hole filled with rocks. (When calculating the size of a soak pit, the volume of water storage available for a rock-filled hole is 0.38 times the volume of the hole.) So:
Vstor = 0.38 × 30m3 = 11.4m3
Calculate:
Asp (area of base of soak pit) = 5.0m × 3.0m = 15m2
Vsoak = 15 × 300/1000
Vsoak = 4.5m3
Step 4: Calculate storage volume required Use the formula: Vstor = Rc - Vsoak
Vstor = 15.75m3 - 4.5m³ = 11.25m3
11.25m3 ≤ 11.4m3 so soak pit sizing is OK.
© BRANZ Build 159; www.buildmagazine.org.nz
December 2017/January 2018
33
NUTS & BOLTS
Updating AS/NZS 3500 REVIEWING A STANDARD is no simple task. It takes a great deal of time, effort and input by many people. For Rotorua plumbing business owner Jon Lewis, it has involved meetings with Standards New Zealand and the Ministry of Business, Innovation and Employment (MBIE) plus several trips to Sydney as part of the joint WS-014 Technical Committee assigned to the project. Jon is one of only two installers on the committee, which also comprises manufacturers, suppliers, water utilities and government regulators from both sides of the Tasman. AS/NZS 3500 is a weighty document. Parts 0 to 4 of the series are included in the review, which excludes Part 5. The public comment period for Part 3 closed in May, while Parts 1, 2 and 4 were out for comment through Standards Australia until 7 December. Jon is now due to return to Sydney where the committee will consider all comments received and redraft if necessary. The revision of Part 2, Sanitary plumbing and drainage, includes changes to align the Standard with the Plumbing Code of Australia, which sits within Australia’s National Construction Code. The revisions of Parts 1 and 4, Water services and Heated water services, aim to update requirements relating to backflow prevention, plastic pipes in direct sunlight, thermostatically controlled taps, circulatory heated water and non-drinking water, and to clarify jointing methods. “The whole Standard is relevant to New Zealand, so we’ve got to be there and we’ve got to be involved,” says Jon. He admits
All Standards are reviewed from time to time, and it’s currently the turn of AS/NZS 3500.
Above: Parts 0 to 4 of AS/NZS 3500 are being reviewed.
that communication with Standards New Zealand and MBIE has been challenging, and he would like to see more interest from the government in aligning Building Code G12 Water Supplies with the revised AS/NZS 3500. “Master Plumbers is the only installer organisation in New Zealand represented on the committee,” says CEO Greg Wallace. “For Jon it means time away from work and family, but we must play our part in the creation and review of Standards for our industry in New Zealand.” Master Plumbers supports members on other Standards committees, too. Jon, for example, is also part of the WS-023 Technical Committee that is reviewing backflow prevention Standard AS/NZS 2845. ■
Amendments to AS/NZS 3500.2:2015 In its latest InfoBrief newsletter, the PGDB gave the following reminder of amendments to AS/NZS 3500.2:2015, published in June. “The specific clauses affected are 4.9.1, 4.9.2, 4.9.3, 5.3, 6.5.2.3, 6.5.2.4, 6.5.2.5, 6.5.2.6, figures 4.9.2, 4.10 and 6.5.2.1. “Many of the changes have affected the general design requirements for sanitary plumbing. Specifically, there has been a move away from the use of sweep junctions (e.g. swept 88° junctions) to connect in combined discharge pipes. “Two areas that will have a noticeable effect on plumbers are with junctions in graded pipes and junctions installed in a vertical plane. “With regards to junctions in graded pipes, pre-amendment 6.5.2.3 outlined that ‘Junctions (whether equal or unequal) shall be either 45° or sweep type,’ however, post-amendment 6.5.2.3 states ‘Junctions (whether equal or unequal) shall be 45°.’ “With regards to junctions installed in a vertical plane, pre-
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December 2017/January 2018
amendment 6.5.2.6 outlined that ‘Sweep and 45° junctions may be installed in the vertical plane for the connection of a single discharge pipe....’ “However, post-amendment 6.5.2.6 states ‘45° junctions shall be installed in the vertical plane for the connection of a single discharge pipe and common discharge pipe.’ “A noticeable change in drainage systems is in figure 4.10 which shows a typical vertical jump-up from the main drain to graded branches. Pre-amendment this figure displays a sweep 88° junction and post-amendment it displays a 45° junction. “The move to 45° junctions and away from sweep junctions will be an improvement to the system as it improves airflow in the discharge pipes resulting in a lower chance of blockage. “The updated version of 3500.2:2015 can be accessed by authorised plumbers, gasfitters and drainlayers through the trade login at www.pgdb.co.nz by clicking on the Standards New Zealand logo.”
Pipe penetration through roof
NUTS & BOLTS
Small pipe penetrations in roofs are typically flashed using proprietary EPDM boot flashings. By Alide Elkink. FOR PROFILED METAL roofing, E2/AS1 permits use of boot flashings where: • the maximum roof pitch is 45° • the minimum pitch is 10° if the base of the flange covers one or more complete troughs • the pipe diameter is no more than 85mm • they are installed on the diagonal so water will flow around the flashing. The boot flashings must be dressed, sealed and fixed to the roof profile (see Figure 1).
soaker flashing dressed to the tile profile, or a lead sleeve taken 100mm up the pipe and soldered to a lead flashing that is dressed to the roof tile profile 150mm all around and carried up to the top edge of the tile – E2/ AS1 Figure 29. For larger framed penetrations, refer to E2/AS1 Figure 31 or use a proprietary boot flashing designed for flues. These are outside that scope of E2/AS1 and must be submitted for consent with supporting information as an alternative method. A preferable option is to carry the soaker flashing up the roof to a ridge flashing (see Figure 2) rather than the details shown in E2/AS1: Figures 54 and 55. The NZ Metal Roof and Wall Cladding Code of Practice recommends a maximum length for a soaker flashing of 1.5m to a ridge. ■ •
Figure 1: Pipe flashing.
For larger penetrations, flashing is using: a soaker flashing with an EPDM boot flashing for penetrations up to 500mm – E2/AS1 Figure 54 • a soaker type flashing (for penetrations up to 1200mm) – E2/AS1 Figure 55. For masonry tiles, a pipe penetration may be flashed using: • an EPDM boot flashing fitted to an integral malleable •
Figure 2: Detailing option for a larger penetration.
© BRANZ. From Build 162, October 2017, www.buildmagazine.nz
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December 2017/January 2018
35
NUTS & BOLTS
MEPS requirements for HWC Rinnai explains why electric hot water cylinders must comply with MEPS in New Zealand. THE ELECTRIC HOT water cylinder is one of the appliances with a MEPS requirement in New Zealand. MEPS, or Minimum Energy Performance Standards, is a series of energy-use standards for appliances, which looks to minimise appliance energy consumption. Any cylinder from 6.5 to 630L needs to meet MEPS requirements—which covers the vast majority of domestic HWC in NZ.
conducting MEPS testing, Rinnai felt the rigorous accreditation process would result in a very robust test process, giving quality results Rinnai and its customers could rely on. The accreditation process includes an independent assessment by a process expert as well as a full process and documentary check and an assessment of staff knowledge and suitability. The Rinnai laboratory is the only HWC manufacturers’ test facility to have IANZ accreditation in NZ.
HWC manufacturer compliance
New cylinder technology
For manufacturers such as Rinnai, it is important that we are able to test and ensure compliance with MEPS. To enable us to do this, we have built a HWC test laboratory, featuring stateof-the-art temperature measurement and recording systems, as well as highly accurate calibration equipment. The lab is able to perform tests to any of the NZ test methods. To ensure the lab follows best practice and can give quality results, we have gained IANZ accreditation for the testing we undertake. While IANZ accreditation is not essential for labs
Rinnai has been working in the areas of cylinder insulation and standing heat loss determination to bring to market a range of new hot water cylinders suitable for both indoor and outdoor installation. The cylinders feature a Colorsteel corrosion resistant outer case and are electrically approved for outdoor fitment. Rinnai has also worked on a design that meets MEPS requirements while allowing ease of installation in domestic hot water cupboards by keeping the outer case diameter under 500mm.
Above: Rinnai has built its own hot water cylinder test laboratory where IANZ-accredited testing is carried out to ensure MEPS compliance. 36
December 2017/January 2018
We have worked with the leading insulation foam suppliers in NZ and Australia to determine a new formulation of insulation foam that allows us to meet the combined challenge of a practical outside diameter on the cylinder for ease of installation by the tradesperson, along with meeting MEPS requirements to ensure the cylinder minimises heat loss. The foam formulation also has a low Global Warming Potential index. This means its overall contribution to climate change and ozone depletion is minimal.
NZBC H1 Energy Efficiency EECA calculates that up to 30 percent of the average household annual electricity bill can be apportioned to hot water production, which shows how much impact energy-efficient hot water cylinders have on domestic power bills and overall energy use. MEPS is set in New Zealand legislation by the Energy Efficiency (Energy using Products) Regulations 2002, which set out requirements for appliance suppliers to follow. For specifiers and installers, MEPS for HWC becomes a consideration in the NZ Building Code (NZBC)—specifically section 5.0 of H1/AS1. NZBC H1 covers energy efficiency, and in many building consents H1/AS1 will be the method cited for compliance. Section 5.0 is quite specific in that it says: “Electric Storage Water heaters that do not comply with NZ MEPS do not comply with this solution.” It is important to note that MEPS requirements for New Zealand are different from those for Australia. MEPS for Australia and NZ are set out in electric water heater Standard AS/NZS 4692.2:2005. This details the test methods used to determine if an HWC meets the MEPS requirements. In simple terms, the test looks at how much energy is needed to maintain a cylinder at a fixed temperature over a given length of time with no water flow in or out of the cylinder. The amount of energy needed to maintain this temperature is directly related to the amount of energy being lost to the outside. This energy loss is known as standing heat loss.
Causes of standing heat loss Several factors can influence standing heat loss, which is measured in Kilowatt-hours (kWh) per 24 hours. Examples include: • level of insulation on the tank • type of insulation used • cylinder surface area • number of ports • temperature of the water inside the cylinder. Using AS/NZS 4692.2, a typical NZ specification mains pressure 180L cylinder has to perform better than 1.76kWh/24h. A cylinder complying with Australian MEPS of broadly the same specification has to perform better than 2.02 kWh/24h. Over a year that’s a difference of around 95kWh. So you can see why the NZBC mandates hot water cylinders with NZ MEPS must be used. ■
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NUTS & BOLTS
Gas Ring
Our latest round up of gasfitting news.
5601 under review
Ongoing reviews are underway for parts 1 and 2 of gas installations Standard AS/NZS 5601:2013, which are cited in the Gas (Safety and Measurement) Regulations. The JAS-ANZ AG-006 committee reviewing the Standard comprises around 20 members who meet bi-monthly to discuss gas installation and appliance matters for the New Zealand and Australian markets. It includes technical regulators from both countries, with New Zealand contributing through Energy Safety. Master Plumbers Board Director John DeBernardo is among a total of three NZ members of the group—the others being Keith Rogers of Energy Safety and Peter Gilbert of the LPG Association. John gave a summary of the review at the Master Plumbers half-yearly meeting in October. Part 1: General installations One key proposal for change is to prohibit the use of composite PEX gas pipe outside above ground. This, says John, is as a result of the destruction of this type of pipe during the recent Australian bush fires. The pipe sizing tables in Appendix F are also being reviewed,
with the view that some may take an overly conservative approach. “For example, when sizing pipes for a multi-storey building, the load is calculated to allow for every appliance to be running at the same time, which possibly results in oversized pipes,” he said. There are also plans to increase the requirements for fireresistant construction and facing materials used in commercial kitchens and for combustible surfaces in domestic kitchens. Part 2: LP gas installations in caravans and boats Key proposals for change are: • •
Revising the clearances around LPG cylinders on caravans and mobile vehicles. Introducing a standard metallic compliance plate for new marine and mobile applications.
There is no desire to stop manufacturing innovation and quality imports, explained John, but there are safety concerns around the quantity and location of LPG cylinder storage in some mobile installations—particularly caravans and trucks.
Gas appliances in imported caravans and motorhomes Energy Safety is reminding importers of caravans and motorhomes that they can’t be sold without certified or endorsed gas appliances, even if the importer tells the buyer that it needs doing. Anyone who sells something that isn’t certified when it needs to be may be committing an offence, it says. “All gas appliances and installations have to be safe. Certification and endorsement provide means of demonstrating safety. Regulation 44(3) of the Gas (Safety and Measurement) Regulations 2010 states: Every person who supplies or intends to supply an imported gas installation to a retailer or consumer must, before supplying the gas installation, ensure that it complies with the requirements of section 2 of whichever of the following applies: (a) AS/NZS 5601.1; or (b) AS/NZS 5601.2. “This Regulation applies to anyone who imports a gas installation and supplies it to another person (which includes sale). It doesn’t apply to someone who imports an installation
Gasfitting infringement
Energy Safety recently issued an infringement notice to a gasfitter who issued a gasfitting Certificate of Compliance (CoC) indicating that the work performed complied with AS/ NZS 5601.1 when in fact the work did not comply. “Gasfitters and electrical workers have to ensure that the gasfitting or prescribed electrical work they do complies with the relevant provisions of the Gas (Safety and Measurement)
38
December 2017/January 2018
for their own use unless or until they subsequently supply it to another person. “The Regulation is met by obtaining verification that the essential requirements in section 2 of AS/NZS 5601.2 have been met. A certificate of verification using the methodology of NZS 5255:2014 Safety verification of existing gas installations would do that. “This isn’t the only way. For example, if the caravan or motorhome is imported from Australia it is likely to have been constructed to AS/NZS 5601.2 in the first place and if the importer has the compliance documentation that would also meet Regulation 44 provided the installation is not unsafe. “Regulation 54 applies to appliances in imported installations. They have to be certified or alternatively be endorsed in accordance with regulation 57 (endorsement may replace certification for certain appliances and fittings) before they are offered for sale.” ■
Regulations or the Electricity (Safety) Regulations 2010,” says Energy Safety. “Each of these regulations cites an installation standard that contains a means of compliance that installation should comply with. Gasfitters and electrical workers who undertake installation work need to ensure they understand and follow the means of compliance for the work undertaken.”
®
SecuraGoldTM
KemPex
Auspex
Ginde
Forza
Averaged Install Times (Min/Sec)
18.07
26.17
26.48
28.49
29.02
% average slower to install vs SecuraGoldTM
-
45.08%
47.93%
59.06%
60.26%
INDUSTRY TALK
A super weekend Three lucky plumbers and their families got up close to the action at the ITM Auckland SuperSprint, thanks to Rheem. The winners of the Rheem Super Weekend competition with Rheem and Master Plumbers were treated to a VIP experience at Pukekohe Park Raceway on 4 and 5 November for the New Zealand round of the Virgin Australia Supercars Championship. The special weekend, which included travel and accommodation, began with a behind-the-scenes tour of the pits and a chance to meet Shell V-Power Team Racing stars Fabian Coulthard and Scott McLaughlin. A grid walk moments before the race gave the Rheem Super Weekend winners a chance to check out the teams’ last-minute prep, before watching the Supercars from a VIP suite in prime position above the pits. Steve O’Connor of Whakatane’s Eastern Bay Plumbing took his 90-year-old dad, Ray, a retired mechanic, to enjoy the unforgettable weekend. “It was, for me, extra special that I could take my father. He had a ball,” says Steve. Kyle and Rhonda Smythe, from Auckland’s Premium Plumbing & Gasfitting, said they were blown away by their “amazing” experience, while Vicki and Peter Rine of Marton’s Cobham Plumbing & Drainlaying took their son Daniel with them for the once-in-a-lifetime chance to get close to V8 racing’s best drivers. It was an action-packed weekend as Coulthard flipped his Ford Falcon on Saturday, before a near-miraculous car rebuild overnight put him back on the track for Sunday’s racing. He stormed back for fifth while McLaughlin came in second, keeping his hopes of a championship victory alive. Rheem is a major sponsor of the Shell V-Power Racing Team, and was thrilled to share this year’s ITM Auckland SuperSprint with its loyal customers. The winners were chosen from entrants who had recently purchased a Rheem Gas Continuous Flow Water Heater. “We’re proud to support these legends of V8 Supercars, and the ITM Auckland SuperSprint is a great opportunity for our clients to enjoy the thrill of their success,” says Brian McFarlane, Marketing Manager at Rheem New Zealand.
Above: The winners and the Rheem team met Shell V-Power drivers Fabian Coulthard and Scott McLaughlin.
Above: On the pit tour, the winners spotted what they thought was a Shell V-Power Racing Team mascot—but is actually a sophisticated stand that uses air to dry the drivers’ gloves and helmets.
Gold Partner
Above: The grid walk gave the winners a chance to check out the Shell V-Power Racing Team’s preparations in the moments before the race.
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December 2017/January 2018
Above: Winner Steve O’Connor, right, took his dad with him to the VIP experience. Ray, 90, is a retired mechanic and helps Steve’s brother race a BMW.
INDUSTRY TALK
Top talents
It’s been another year of high achievers in the Certifying exams, says the PGDB. Each year, the Plumbers, Gasfitters and Drainlayers Board (PGDB) present Merit of Excellence Awards to top performers in the Plumbing, Gasfitting and Drainlaying Certifying Exams. In 2017, they were awarded to Michael Williams of Taupo, Warren Shervey of Wellington and Sven Hogenesch of Hawkes Bay. “It is top performers such as these who are contributors to the growth of the industry and lead by example in raising the profile and ensuring the highest of professional standards within the trades,” said PGDB Chair Peter Jackson. Michael Williams started his plumbing, gasfitting and drainlaying apprenticeship in 2005. He completed his Plumbing and Gasfitting National Certificates in 2010, achieving that year’s highest mark for plumbing, and registered as a Tradesman Plumber the following year. Michael went on to pass the Certifying Plumber exam in June 2016, scoring 86.5 marks, and became registered as a Certifying Plumber three months later. Warren Shervey started his plumbing and gasfitting apprenticeship in the 1990s, and went on to become a Certifying Plumber and Gasfitter in 2004. He then became registered as a Tradesman Drainlayer in 2016, after having completed his National Certificate and passed the Tradesman Drainlayer exam. Warren sat his Certifying Drainlayer exam in November 2016, scoring 94 marks. He will be eligible for registration in 24 months. Sven Hogenesch started his training in plumbing and gasfitting in 2008, adding drainlaying in 2010. He registered as a Tradesman Plumber and Gasfitter in 2012, having completed his
Above, from left: Michael Williams (Plumbing), Warren Shervey (Drainlaying) and Sven Hogenesch (Gasfitting) with Peter Jackson (PGDB Chair).
National Certificates and passed his exams. Sven passed his Tradesman Drainlayer exam in 2015 and became registered the following year. He then sat his Certifying Plumber and Gasfitter exams in 2016, scoring 94.5 marks in gasfitting. He became registered as a Certifying Plumber in 2017 and is eligible for registration as a Certifying Gasfitter.
Makeover at MBIE
A recent MBIE review showed that ‘Building System Performance’ was the regulatory system most in need of improved performance. As a result of the review, Building System Performance (BSP) is being ‘transformed’, according to the Ministry of Business, Innovation and Employment (MBIE). A new BSP structure took effect on 2 October, with new General Manager Anna Butler at the helm. The aim is to help ensure a more joined up approach, with a ‘whole of system’ view of building and construction. “The work MBIE and BSP does matters,” says Anna. “Building and construction make a significant contribution to our nation’s economy and social wellbeing. These changes will effectively shape the building regulatory system to meet New Zealand’s current and future needs.” The changes have seen the addition of 22 more positions across MBIE’s building services.
BSP is also streamlining its work programme to focus resources on the big issues. “We’re building our culture and capability so we can deliver a higher-performing building system, directed by strategic goals and a good understanding of the sector,” says Anna. “We know we can’t do this alone—MBIE will collaborate with our industry partners to provide quality policy advice and guidance. The whole sector has a role to play in lifting performance, embracing innovation and moving forward.” As part of the change, the Determinations team and a new Building System Assurance team have become part of the Market Services group within MBIE. This group already houses the LBP and Weathertight Services teams.
December 2017/January 2018 41
INDUSTRY TALK
Sam’s speak
This edition, Sam Tyson reflects on the importance of being professional.
Disaster struck with a job we were working on recently. We were installing a radiator system into a new-build home and were at commissioning stage. The homeowners were set to move in within the next two weeks. We had balanced the radiators and left the system under pressure with the autofill hooked up to work out any air. The homeowner wanted to be able to turn the system on when winter arrived without issues. Overnight, a pipe connected to a fitting by the boiler gave way. The boiler was in the ceiling space on the second level. Water poured down through the ceiling, flooding the upper level which happened to be a concrete slab. This caused water to travel mainly to the outer edge and cascade down into the outside wall cavities, soaking and swelling the plasterboard and wood. There was damage to walls, ceilings, carpet, light fittings… you name it. As you can imagine the homeowners were devastated when they discovered the flooding the next morning. It had taken a year to get to the point where they were so close to moving in. On finding out, we immediately kicked into action by sending one of our tradesmen out to stop the water flow and isolate the system. We contacted our insurance company and I visited the
homeowners that day to discuss what had happened and to present them with a voucher for dinner, bed and breakfast at one of our local boutique hotels. This in no way compensated for what had happened, but the gesture was appreciated. In talking with the homeowner, he told me they had a choice of three plumbing and heating businesses to go with when deciding on their heating system, and chose us because of our professional approach. We weren’t the cheapest but we presented ourselves as competent, trustworthy, courteous and respectful—and, right now, we were demonstrating accountability. The homeowner, a retired carpenter, said of all the tradesmen on site, our guys worked diligently and competently without distraction, and he had told our lead tradesman how pleased he was with his work the day before disaster struck. We don’t know whether it was a workmanship issue or a faulty fitting, but at no point have we blamed, shamed or justified what has happened. We have simply taken responsibility to put it right, because that’s what a professional business does.
Public loos feel the strain…
Laser Group’s Scott Carr is calling for increased investment in water sanitation to keep up with population and tourism growth. With New Zealand’s growing population and increasing numbers of tourists visiting our country, the government needs to ensure that our waste management facilities and practices meet demand, says Laser Group New Zealand General Manager Scott Carr. New Zealand’s tourism market is booming, with more than 3.4 million tourists arriving on our shores in 2016. The influx of tourists is beginning to place a strain on public infrastructure around the country, says Scott—particularly on public toilets. With ageing infrastructure, the amount of public amenities in several of New Zealand’s tourist hotspots are struggling to keep up with tourist numbers, leading to reports of defecation in public parks and overflowing septic tanks. “It’s important that the organisations responsible for waste management stay at the forefront of technology and community needs, to keep the environment and water quality of New Zealand pristine,” he says. “Whilst plumbing isn’t all about waste management, it is important to take the time to appreciate the role our plumbers 42
December 2017/January 2018
Above: Scott Carr.
play in keeping our population safe and healthy, as well as the impact on our economy through industries such as tourism.”
INDUSTRY TALK
Workout for water
UNICEF partnered with Les Mills in November for a global fundraiser. The worldwide Move The World fundraising event was linked to UNICEF’s celebration of children on World Children’s Day (20 November). UNICEF partnered with fitness company Les Mills International in creating this global fundraising campaign and one-day fitness activation to help children and their families in some of the world’s poorest nations to gain access to safe water, healthcare and food. This year’s event focused on Workout for Water, with Les Mills’ instructors and gyms asked to fundraise $414 USD—the
cost of a well in East Africa that could bring clean drinking water to an entire community. On 18 November, in gyms and fitness clubs around the world, instructors led special group fitness classes with participants asked to make a donation to the cause. Each workout included a challenge representing an East African child’s journey to collect clean water—for example, walking 3.7 miles (8,000 steps) whilst carrying water cans weighing up to 20kg.
Warning for solar retailer
A solar panel retailer has been issued a warning by the Commerce Commission. Solar panel retailer New Zealand Home Services Ltd (NZHS) is likely to have breached the Fair Trading Act, according to the Commerce Commission, by making unsubstantiated representations about the financial benefits of solar panel installation on its website and in its sales presentations. “It is important for traders to properly substantiate claims which cannot easily be verified by the consumer,” said the Commission’s Head of Investigations, Ritchie Hutton. “Solar panel installation requires significant up-front cost and in our view NZHS made claims about the financial benefits of installing solar systems without sufficiently backing up those claims in the
New Zealand market.” The Commission asked NZHS to provide materials to substantiate its claims. “In our view the materials provided were of varying degrees of reliability, were from overseas sources not relevant to the representations made about the New Zealand market, or were created or compiled after the representations were made,” he said. The substantiation provision of the FTA requires a trade to have reasonable grounds for making a representation at the time it was made. NZHS has since removed the representations from its website and sales presentations.
INDUSTRY TALK
Melbourne Cup Day
The Auckland Master Plumbers enjoyed a day at the races in November. Plumbers and their partners turned out in all their finery for a private marquee Melbourne Cup Day event at the Ellerslie Race Course in November. Also attending were representatives from the 14 Master Plumbers’ Business Partners kindly sponsoring the event. The day was hosted by the Auckland Master Plumbers, and President Dale Lovell kept his promise of a fine, sunny afternoon for the assembled crowd of 120 people. Guests mixed and mingled at the 15 tables and some took a flutter on the horses, with Geoff Miles of Caroma particularly pleased with his $1,600 win on a $6 bet. Best dressed male and female prizes were also given on the day—Milan Kumar of simPRO and Jo Jeffries of Jeffries Plumbing scoring the prize vouchers for their race day outfits.
Above: The best-dressed prize winners.
A costly outbreak
The Havelock North water contamination event cost around $21 million, according to a Ministry of Health report. The Stage 2 Inquiry hearings into the Havelock North water contamination event were completed in August, with the final report due on 8 December, as this edition of NZ Plumber went to print. In an article in Water Journal magazine, Water New Zealand Technical Manager Noel Roberts said the Inquiry “heard evidence of the lack of compliance with the NZ Drinking Water Standards, and expressed dismay at the lack of enforcement of the regulations by the Ministry [of Health] over the past 10 years.” According to the article, hearing panel members showed “considerable frustration” at the Ministry’s lack of leadership, and it was being expected to “get on and make changes” ahead of the December deadline. In September, the Ministry of Health released an independent report on the economic costs of the Havelock North outbreak. According to Water New Zealand, the report states the outbreak has cost around $21 million, including an estimated cost of $12.4m for ‘household inconvenience’, such as boiling water and taking time off normal activities. Water New Zealand CEO John Pfahlert says it cost just $1m to install a water treatment plant for the Havelock North
community following the outbreak, showing that effective water treatment makes economic sense. “Twenty-one million dollars is a significant amount of money, especially compared to the cost of water treatment,” he says. “But we also know that water contamination outbreaks have a big human toll.” The outbreak could have been even worse if the campylobacter strain had been slightly different, he says. “In that case we could have been looking at a way bigger calamity including a scenario of many more deaths. Whatever way you look at it, water treatment is a no brainer and water suppliers need to be very aware that outbreaks are way more costly than preventative treatment.” The Office of the Auditor-General announced in October that it is to explore New Zealand water management system in its 2017/18 work programme, partly as a result of the Havelock North drinking-water contamination and Edgecumbe flooding issues. “What we bring to the topic is the independence that enables us to look at the water management system as a whole— across central and local government and beyond political cycles.” When the work is completed, the Office will highlight any improvements needed.
Anti-theft project
Your feedback is sought on a planned project to record and protect tradespeople’s tools. A long-standing member of the New Zealand Police is looking to develop a simple, user-friendly tool to record and protect your tools and other assets. Too often he has seen offenders get away with unlawfully taking tradespeople’s tools and assets, with no way of identifying who actually owns them. As a result, the items can’t be removed from the offender or returned to the owner. It is extremely frustrating leaving tools and other valuable items 44
December 2017/January 2018
with someone you know they don’t belong to (ie, a criminal), he says. He wants to change that and hopes you can assist by answering 18 quick yes/no questions to ensure this project suits tradespeople’s needs. NZ Plumber has verified this survey is legitimate, and encourages you to assist by participating. To take part, go to https://idyourstuff.typeform.com/to/TVStBq
INDUSTRY TALK
Measuring construction costs NZIQS has signed up to the new international construction measurement standards. The New Zealand Institute of Quantity Surveyors has signed up to the new International Construction Measurement Standards (ICMS), which provides consistency in classifying, defining, measuring, analysing and presenting construction industry costs. By providing a global framework for measuring, costing and reporting, ICMS enables governments and investors to compare construction costs like with like. Previously there was no universal standard and, internationally, the construction industry used different methods of measurements. Nor was there any commonality in terms of costs and construction reporting. The ICMS coalition was formed to address these issues, and the New Zealand Institute of Quantity Surveyors joined as a trustee member 18 months ago. NZIQS President Barry Calvert says New Zealand is pleased that ICMS is very similar to the standard already in place here. “NZIQS now has training in place for their members to become familiar with the ICMS format and we will be encouraging quantity surveyors to use it for both public and private sector projects going forward. “With ICMS in place, construction agencies and their clients will be able to compare the cost of a building in New Zealand to
any other country in the world and know that the costs and the standards of the building will be equal.” Another New Zealand member of the coalition, registered valuer John Darroch, says the ICMS means the public will have more confidence in costs that are quoted to them. “ICMS will standardise how construction costs are reported. This will assist in evaluating properties and the public will know they are receiving accurate information.” To find out more, go to www.nziqs.co.nz/Resources/ International-Construction-Measurement-Standards-ICMS
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December 2017/January 2018 45
SAFETY FIRST
Hazardous substance changes are here
WorkSafe explains the new focus on hazardous substance safety.
HAZARDOUS SUBSTANCES ARE widely used across New Zealand workplaces, so it’s important to know the risks and how to protect people from harm. On 1 December, the Health and Safety at Work (Hazardous Substances) Regulations 2017 came into force. They apply to all workplaces that manufacture, use, handle and store hazardous substances. One in three businesses work with hazardous substances in New Zealand and that includes tradespeople. Common hazardous substances are fuels and LPG, acids, cleaning solutions, paints, glues and chlorine. “Used safely, hazardous substances can contribute to the nation’s economic growth and prosperity,” says WorkSafe General Manager Operations and Specialist Services, Brett Murray. “But they also pose real risks to the people working with or around them, including explosion, fire, and serious health issues.”
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Work-related health risks It is estimated that New Zealand workers are 10 times more likely to die from work-related health risks, such as hazardous substances, than workplace safety incidents, he says. However, despite this harm, there can be more complacency about the dangers of hazardous substances than other workplace risks. “The harm from inhaling toxic vapours or contact with some substances is often unseen. Workers may be unaware they are being exposed, and the effects of exposure may not be discovered for many years. “The regulations are aimed at reducing the harm from hazardous substances in the workplace and will increase the focus on their safe management. They bring an expectation on everyone working with them to know what those substances are, the risks they pose and how to manage those risks.”
SAFETY FIRST
What’s different? This is not about wholesale change. The rules for work-related activities involving hazardous substances are moving from the Hazardous Substances and New Organisms (HSNO) Act to the Health and Safety at Work Act (HSWA). Many of the existing requirements continue under the new regulations, so if your business is complying now, there may not be much more you have to do. However, there are key changes that will help ensure you, as the person in charge, are doing your duty to protect people from harm. The starting point is to identify the risks in your workplace. Make a list of the hazardous substances on site, the quantities and where they are stored. Then read the safety data sheets (SDS) to understand the risks they pose, how to use and store them safely and what to do if there is a spill or you are exposed to them. A SDS will be required for each substance. “You will also need to keep an inventory of your hazardous substances, and the simplest way to do this is to use the Hazardous Substances Calculator,” says Brett Murray (see box below). The calculator will help you work out the safety measures (or controls) you need to put in place to keep people safe. This includes general requirements, such as labelling, packaging and ensuring workers have sufficient instruction and supervision, as well as any additional measures triggered by certain substances or quantities. “Some highly hazardous substances will require a certified handler, while certain quantities of some substances may mean you need to engage a compliance certifier to issue a location compliance certificate. So, as well as reducing risk, keeping your substances to a minimum can help reduce the costs to your operation. “That’s why you should first look at whether you can remove any products, reduce the amount, or replace them with a safer alternative.” It is important to note that the required controls may not be enough to protect people from harm, and you must remove or reduce any remaining risks. This can include installing safety measures, such as extractor fans or using automated enclosed areas to conduct hazardous work. “Personal protective equipment may also be necessary, but should be the final step after implementing other measures. And remember, even the most safety-conscious business can have an accident. Make sure you have an emergency plan in place, including who to contact and who is responsible for what.” ■
Useful resources •
• • •
Go to www.worksafe.govt.nz for guidance and information to help you understand your obligations (under Information & guidance/guidance by industry/hazardous substances). Find the Regulations at www.legislation.govt.nz Find practical help at www.hazardoussubstances.govt.nz (including the Hazardous Substances Calculator). Keep updated by subscribing to the Hazardous Substances e-newsletter at http://www.worksafe.govt.nz/ worksafe/about/subscribe
Seven key changes According to Site Safe, some of the key changes include: 1 Inventory There is a new mandatory requirement to keep an inventory of all of your hazardous substances used, handled, manufactured or stored in the workplace, including hazardous waste. 2 Safety Data Sheets Safety Data Sheets are a key source of Above: You will need to keep an inventory of all the hazardous information about substances in your workplace. managing your hazardous substances. You must have a Safety Data Sheet for all hazardous substances in your workplace, regardless of the quantity you hold (some exceptions apply). 3 Information, instruction, training and supervision The Health and Safety at Work (Hazardous Substances) Regulations have specific requirements around providing information, instruction, supervision and training to make sure workers know how to safely use, handle and store the hazardous substances in their workplace. 4 Emergency preparation You should be managing your risks to avoid an emergency, but it’s equally important to plan for one. The Regulations set out specific requirements for this. This includes understanding procedures to deal with emergencies. 5 Labelling containers of hazardous substances (including hazardous waste) There are new requirements for making sure that hazardous substance containers in the workplace are labelled, including process vessels—as well as maintaining the labels on hazardous substances supplied to you. 6 Signs These continue to be an important part of hazardous substances management, as they warn other people in the workplace and emergency services that hazardous substances are on site. 7 Focus on risk assessment, and elimination or minimisation It is important to manage the risks associated with hazardous substances and to review what you have in place to keep people healthy and safe. Eliminate risks if reasonably practicable and minimise risk where elimination is not possible. The new Regulations come into force on 1 December but there are some later commencement dates and transitional arrangements that are summarised on the WorkSafe website (see box on the left).
December 2017/January 2018 47
SAFETY FIRST
H&S: are you onto it? The ‘new’ workplace health and safety legislation has been in place for nearly two years. Doing enough? Cecilia Milne of Duncan Cotterill provides a point-by-point refresher.
1. Plumbers, gasfitters and drainlayers work in a high risk sector. Ensuring the health and safety of everyone on and around your worksite, including workers, clients and members of the public, is essential. 2. The Health and Safety at Work Act 2015 (HSWA) is New Zealand’s main workplace health and safety law. The HWSA was introduced as part of an overhaul of New Zealand’s health and safety regime, after an independent taskforce concluded that Kiwi attitudes to health and safety are too laid-back. If there’s one take-away message from this article, it’s that a ‘she’ll be right’ approach just won’t cut it any more. 3. All of us, at every level of an organisation, should be adopting a proactive, rather than a passive or reactive, approach to workplace health and safety. Organisations must create a culture where staff and management ‘walk the talk’. Failure to do so can result in injury or death, and risk prosecution, hefty fines and imprisonment.
What are my obligations as a plumbing business or organisation?
4. The primary duty under the HSWA is on the ‘Person Conducting a Business or Undertaking’ (PCBU). The definition of PCBU covers all types of modern working arrangements, including a plumbing organisation (be it a company, partnership or other entity) or an individual plumber operating as a sole trader or a self-employed person. PCBUs that work together—such as multiple subcontractors working together on a construction site— will have overlapping duties. 5. A PCBU must ensure health and safety, so far as is ‘reasonably practicable’, of its own workers, as well as other workers whose activities are influenced or directed by the PCBU. It must also protect others who might be put at risk from the conduct of the business or undertaking, such as visitors or the public.
What does this mean in practice?
6. Each PCBU must work together with its officers and workers (see points 8 & 9) to identify potential hazards or risks and take reasonable steps to eliminate or minimise risk and ensure health and safety. Such steps will vary according to the
a ‘she’ll be right’ approach just won’t cut it any more 48
December 2017/January 2018
• • • • • •
industry, organisation and worksite, but will include at least a duty, so far as is reasonably practicable, to: Eliminate or minimise risks Provide a safe work environment Provide safe equipment Ensure suitable procedures Provide appropriate training, induction and supervision Monitor conditions at the workplace.
7. The following table identifies some areas that may be relevant to plumbers, gasfitters and drainlayers and suggests non-exhaustive examples to assist readers in thinking about the sort of practical steps you might take in your business.
What are my obligations as an officer or worker?
8. ‘Workers’ and ‘others’ must take reasonable care for their own and others’ health and safety, and comply with the PCBU’s policies, procedures and instructions. A ‘worker’ will include employees, contractors, subcontractors, temporary or labour
SAFETY FIRST Area
Examples of practical steps
Training and worker participation
• Are staff properly supervised and given clear instructions? • Are workers trained, competent and fit to do the job safely and without putting their own or others’ health and safety at risk? • Are workers involved in ongoing discussions about health and safety issues and given opportunities to participate in improving health and safety?
Site and services
• Is access safe, tidy, and well lit with edges/holes marked? • Have all necessary services been provided and steps taken to prevent harm from them (eg, gas or electricity mains)? • Are tools, leads and cables appropriate and in good condition? • Is the worksite fenced off from the public, with clear signage and secured overnight?
Working at height
• Where persons are working at height—for example, on scaffolds, ladders or roof work—are they and those around them protected from harm/falls/dropped equipment?
Moving material
• Have steps been taken to avoid harm to persons involved in manual handling of heavy materials or the loading and unloading of goods? • Are any excavations being carried out in a safe manner?
Working with vehicles and machinery
• Are vehicles and plant in good condition, and used or driven safely and properly with appropriate training? • Are the right tools and machinery being used for the job, with the right training and maintenance, and with all dangerous parts guarded?
Critical health risks
• Are all potentially hazardous substances identified and controlled, and used only with appropriate training? • Are workers protected from noise? • Is suitable personal protective equipment provided and used?
Worker wellbeing
• Are workloads suitable and are there steps in place to address the risk of fatigue? • Is there policy and procedure in place to manage alcohol and drug related hazards?
Emergency situations • Are there procedures and training to deal with emergencies and fire? Working off-site
• Is health and safety ensured when staff are working off-site?
hire workers, apprentices or trainees and volunteer workers (for example, someone on work experience). 9. ‘Officers’—individuals in the position of a director in a company, a partner in a partnership, or a comparable position with significant influence over the management of the business—must take reasonable steps to plan, deliver, monitor and review the PBCU’s management of health and safety risks. 10. The duty on officers is a personal one—it can’t be delegated to a health and safety manager or consultant.
The implications of non-compliance
11. By way of example, successful prosecutions under the previous legislation have included the following situations: • Company specialising in plumbing, gasfitting and drainlaying services: The employee was working on a roof and was attempting to untangle a hose when he stepped forward onto a skylight and fell six metres into the workshop below, suffering a broken clavicle. • Company involved in installing effluent management systems and tanks: The victim was working in a deep excavated trench that had not been protected from collapse, when the trench face collapsed and buried him. The victim died at the scene. • Company carrying out general electrical and refrigeration work: An employee came into contact with live terminals while carrying out electrical work on a refrigeration unit in the roof space of a chiller room and was fatally electrocuted. 12. Penalties under the HSWA depend on the offence and what type of duty holder the offender is, as well as the seriousness of the conduct.
13. The maximum penalties for the most serious health and safety duty offences are: • For an individual who is not a PCBU or an officer (ie, a worker or other person): five years in prison or a $300,000 fine, or both • For an officer or an individual who is a PCBU (eg, a sole operator or self-employed individual PCBU): five years in prison or $600,000 fine, or both; and • For anyone else (ie, an organisation that is a PCBU): $3 million fine. 14. Fines will depend on culpability, but will be much higher than previously. There are other less serious offences under the HSWA that nevertheless attract hefty fines. Penalties frequently also involve reparation payments to victims. 15. When things do go wrong, a PCBU must notify WorkSafe as soon as possible after a notifiable event. Serious events, such as a serious illness, injury, incident or death, will need to be notified. Specific examples are detailed on the WorkSafe website. ■
About the author: Cecilia Milne is a Senior Solicitor at Duncan Cotterill in Christchurch. You can contact Cecilia on 03 372 6537; email cecilia.milne@duncancotterill.com
Disclaimer The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose. December 2017/January 2018 49
SMART BUSINESS
Awkward conversations AS YOUR BUSINESS grows, you hire tradesmen and office staff. It’s an exciting time, full of possibilities. However, after a few months, the niggles set in. Someone turns up late. Or it’s a bad attitude. Perhaps a few mistakes, and your team stop following the systems and the processes you’ve put in place. Now, what do you do? Most people do nothing! It’s just a minor blip and you sweep it under the carpet. But then it happens again and frustration levels reach boiling point. Perhaps you say nothing, because you’re scared people might leave or may not like you. The rest of the team notices, they get frustrated and you find the whole culture of your operation suffers. Eventually you get to the point where you’re ready to explode and you’re not able to be constructive. What you want is a process for having those hard conversations so you can have the confidence to take control of your business and team. Step one is a clearly written code of conduct, which outlines the expected behaviours. If and when the code is broken there’s a 10-step process for having those difficult performance conversations.
1. Call it This seems straightforward, but it’s usually the most challenging. If you can call the behaviour early and consistently, this will usually be enough.
2. Pick the right time It’s best to call the behaviour when it’s fresh in people’s minds. However, best not in front of clients or the team. Humiliating someone isn’t going to get you anywhere, plus it’s unprofessional.
3. Acknowledge your feelings If you’re uncomfortable, acknowledge it! Say something like, “I don’t feel comfortable talking about this, but I’ve
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been disappointed that you’ve shown up to work late the past few days.”
4. Ask permission Choose a time to call it that best suits both parties, preferably the next available time.
5. Correct the behaviour, not the person Don’t pick something personal and make them feel bad about themselves. Saying something like, “It looks like filling out your timesheets is becoming a problem. We all agreed to this with the rules of the game, and it seems like you’re having a tough time?” What you’re doing is letting the code of conduct legislate the behaviour, as an impartial policeman.
6. State specifically what didn’t work It would be easy to turn it into a grump session about every issue, but that’s not going to help. Stick to the specific issue and deal with that. If you deal with issues early, you won’t have more than one to deal with.
How to address those niggles with team members? Tony Fraser-Jones has some advice.
7. Clarify the benefits Clarify the benefits for correcting the behaviour, not just for the team but for the person involved.
8. Listen Let them answer without any rebuttal, and get some feedback from their perspective.
9. Acknowledge the desired behaviour When the team member exhibits the behaviour you want, acknowledge it and give them positive reinforcement.
10. Call yourself! Leading from the front will have the biggest influence on encouraging the behaviours you want. If you break the code of conduct, put your hand up and say, “Hey guys I didn’t come up to standard; I’ll do better next time.” ■ If you want more information around having difficult conversations with staff, go to profitabletradie.com/code-of-conductenforcer for a free report titled ‘10 points to enforce your code of conduct’.
EXCLUSIVE
NZ PLUMBER NOW AVAILABLE DIGITALLY
TO MASTER PLUMBER MEMBERS! HOW BINDING IS A QUOTE? AND CAN IT BE WITHDRAWN?—See p62 CONTENTS
24
AUGUST/SEPTEMBER 2017
ON THE COVER HOW BINDING IS A QUOTE? AND CAN IT BE WITHDRAWN?—See p62
AUGUST/SEPTEMBER 2017
RESIDENTIAL CONTRACTS Your rights and obligations
12
60
45
Inside this issue
RESIDENTIAL CONTRACTS Your rights and obligations
62
30
DODGY PRODUCT
HOW ORGANISED ARE YOU? Work smart tips
15
NEW!
Better policing needed
TECHNICAL THEME
TOMORROW’S GASFITTERS Learning support
20
HOT WATER
Water chemistry, home heating and more
70 Cover photograph: A new consumer campaign from MBIE.
AUGUST/SEPTEMBER 2017
WHAT’S ON 7
Check out our industry calendar
MASTER PLUMBERS NEWS 8
CEO Greg Wallace on apprentice training; new Comms & Marketing Advisor; product advocacy and Best in Brand prize
50 Staying strong Outstanding Services to Industry Award winner Dave Strong
TECHNICAL THEME: HOT WATER TECHNOLOGY 21
IN FOCUS 12
15
Policing products Why better controls are needed around imported product
24 Warm water—warm home Combining household hot water with the central heating system
Customer contracts A new campaign reminds contractors of their obligations
26 Legionella control Legionella in potable water systems
REAL LIVES 18
Driven to succeed Plumber Jacob Smith sets himself a high bar
42 Walking into retirement Why this 76-year-old ex-tutor is tramping the length of New Zealand
4
Water pH impact Why water pH matters when choosing hot water products
August/September 2017
29 HPWH technology How they work plus installation tips
PROJECT SPOTLIGHT 30 Preservation plumbing Heritage house plumbing work
NUTS & BOLTS 35
Taken in isolation Benefits of isolation valves
36 Backflow basics What plumbers need to know about backflow prevention 39 Device types Unsure which type of backflow device to use? 40 Tech points Technical updates in brief
INDUSTRY TALK 44 Asbestos removal training Training requirements for an asbestos removal licence 45 Heating up Emirates Team New Zealand Rinnai’s hot water solution for the Bermuda crew 45 Watercare changes in Auckland Changes to compliance statements and connections 46 Sam’s speak What’s the answer to the plumber shortage?
48 Steel mesh charges Charges filed against three producers 48 Cylinder restraint study Could be time for a new approach 49 Homestar rating tool updated Homestar v4 makes the assessment process easier
HEALTH MATTERS 52
P aware The risks of working in meth houses
SUSTAINABLE FUTURES
58 KiwiSaver—10 years on It’s a no-brainer for young working people to join, says the IR 59 Contract Works cover When your subcontract agreement includes Contract Works excess 60 How organised are you? Top tips to working smarter—plus two case studies
NEXT GENERATION 70 Tomorrow’s gasfitters How Rinnai is supporting gasfitting apprentices 73
Taking on the world Young Kiwi plumber prepares for Worldskills Internationals
77
Apprenticeship designed by you A new website from Skills to have your say
62 Quote, unquote How binding is a quote?
54 Water recharge Two new managed aquifer recharge projects
64 Pricing & payments Tips on optimising efficiency and profitability
SMART BUSINESS
INNOVATION
56 We’re watching you Legal boundaries of electronic staff surveillance
66 Drain brain Odour eating floor waste product
57
67 Urgency needed on skill shortages BNZ on why business and government need to work together
Process for change What to know when altering an employee’s agreement
WORLD VIEW 69 Hospital on hold Lead contamination in water at new Perth Children’s Hospital
SUPPLY LINES
PRODUCTS & SERVICES 79 What’s new in the marketplace
AND FINALLY 81
Offcuts Bits and pieces of the unusual kind
82 Dodgy plumbing The best of the worst August/September 2017
5
SMART BUSINESS TIPS FROM THE 2017 MASTER PLUMBER OF THE YEAR—See p50
DODGY PRODUCT Better policing needed
HOW ORGANISED ARE YOU? Work smart tips
TOMORROW’S GASFITTERS Learning support
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SMART BUSINESS
Insolvency: enemy #1
Don’t rely on a director’s personal guarantee to ensure you get paid, advises George Owen.
Q: What is insolvency? A: In simple terms, it’s a company with more liabilities than assets.
There are many reasons why insolvency happens, but the one we will talk about here is because someone did not pay their account to the company. The accounts receivable, or sundry debtors, are a company asset. When they disappear—or some disappear—it can have a big effect on the company’s ability to trade. There is every chance you rely on accounts receivable to pay your bills. When you don’t get paid, because your client didn’t get paid, you can find yourself in trouble too—or with a cashflow problem at the very least. It can happen very quickly.
Q: What happens if a creditor wants to be paid and because of my cashflow crisis I’m not in a position to pay? A: The creditor can legally serve a Statutory Demand under
section 289 of the Companies Act, asking for payment in full within 15 days. If you are unable to pay, or cannot come to some arrangement with the creditor, he has the legal right to apply to the High Court. If he can prove you are insolvent, winding up procedure might follow.
Q: How can he or she do that? A: The Companies Act states that companies must be solvent to trade.
Q: If they prove I am insolvent what does that mean for me? A: It most likely means the end of the road for the company and a huge loss for you. Business owners use different ways to try and protect themselves from this. The one we look at here is a personal guarantee from the company’s director.
Q: Does holding a personal guarantee ensure I will be paid? A: Not necessarily. A director’s personal guarantee is a piece
of paper he has given you to say that, if his company is unable to pay its debts, he will pay them personally. There are many reasons why this may not happen—and it may not be quick or cheap if it does. The first is the validity of the guarantee. Not all hold up in Court if challenged.
So, it depends how much money the director has and how many guarantees he has signed. Often, if a business person is passionate about keeping his business afloat, he will sell everything he owns to inject money into the company, so he will have no personal assets to satisfy the guarantee if the company fails. You will be out of luck. Sometimes a business person does not feel morally or socially responsible for the debts of his company, so he will ensure he has no assets in his name when the company fails. You will be out of luck again. Don’t assume a personal guarantee will ensure you get paid, and definitely don’t sign any personal guarantees on behalf of your company. Put a line through this clause on any form you may be asked to sign. ■ Next up, we look at what happens if the business owner has lots of money but not quite enough to pay all his guarantees—plus your potential liability if you have signed personal guarantees.
About the author: George Owen is Managing Director of Debtorinfo NZ Ltd, a Master Plumbers Business Partner. If you have a question, call George on 0800 734 335.
Q: Do I get paid if my personal guarantee ticks all the boxes? The guarantor cannot get out of the obligation to pay you. Either he pays, comes to an arrangement with you or goes bankrupt.
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December 2017/January 2018
Disclaimer: This article is not intended as legal advice in any way, but a commentary on what happens when things go wrong.
SMART BUSINESS
Host with the most Employers have certain responsibilities when hosting client or staff socials. WITH THE SILLY season upon us, it’s a good time to think about those works parties that are being organised for your employees, contractors and clients, and the responsibilities of being a good host. Social events can be a great way for employees to celebrate a job well done or to get to know their colleagues a little better away from the daily grind. However, they can easily go wrong—particularly when alcohol is involved. If people over indulge, safety and behaviours tend to go out the window, so it’s important that, as a responsible host, you reduce the risk to your employees to ensure everyone enjoys themselves and stays safe. Set the scene—when organising the work event, let your people know what’s expected of them and the behaviours that will not be tolerated. Highlight that drunken behaviour is not acceptable. You want everyone to have a great time and enjoy the moment, and not have it remembered by drunken acts. At such events, employees are there as representatives of your business. You want the public to see them in a good light, not intoxicated.
LOOKING FOR GREAT STAFF? Why not train your own? By getting an apprentice into your business, you’ll have the extra pair of hands you need and staff who are ready to learn. Take on an apprentice. Contact us today on 0508 SKILLS (754 557) www.skills.org.nz
As a responsible host, ensure that you serve plenty of food and non-alcoholic drinks and that arrangements have been made for people getting home at the end of the night. Take care of your younger people, too. Keep an eye on them and remember they need to be 18 years or have the written consent of the parent or guardian to be allowed to drink. Think about having your drinks served to your team rather than it being self-service, and limit the tab or have a maximum number of drinks per person by giving them a set number of tickets to swap for a drink. Summer is here, so let’s enjoy it and stay safe. ■ About the author: Lisa Duston is HR Manager at Master Plumbers. Lisa offers HR advice to Master Plumbers’ members at competitive rates (first 30 minutes free). Contact Lisa on 021 245 1704 or email lduston@masterplumbers.org.nz
SMART BUSINESS
Payroll changes Get your business in order for payroll changes coming in April, says Craig Hudson. BY 1 APRIL 2018, small to medium businesses (SMEs) will experience some changes to the way they pay staff. Inland Revenue is undergoing an overhaul, bringing all of its systems and processes into the digital age. This will mean easier tax reporting and compliance for your business, and there will be changes in payroll administrators’ processes. You may have been frustrated with PAYE in the past, trying to account for the complex variables involved in payroll. Not only does a business’s payroll have to be accurate and flexible, but it also has to account for seasonal work and annual leave, variable rates, contractors and more. Businesses are increasingly using cloudbased software and accounting programmes to enable information to flow smoothly between the business, the accounting software, the banks and the employee. Inland Revenue is introducing an online system that will integrate with cloud-based payroll systems, which will make online reporting and filing part of the seamless process, allowing small businesses to reconcile in real-time.
Inland Revenue is introducing an online system that will integrate with cloudbased payroll
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December 2017/January 2018
Now is a good time to plan for how these changes will impact your business. Firstly make sure you finish all your pay runs for the financial year. Ensure things are organised, so that when the 2018 changes roll around you won’t be left mucking around with old accounts that need reconciling.
Payroll subsidy being removed
The most critical change likely to impact your business is IRD’s removal of the payroll subsidy. Currently, the business cost of a PAYE intermediary is partly or fully subsidised for small businesses. The subsidy is a relic of the first years of online tax filing, where PAYE information was confirmed using a listed payroll intermediary. The reason for removing the subsidy is to establish that there is no longer a case to subsidise one type of payroll service over others. If your business has been receiving this subsidy, it would pay to do your research and plan for your next financial year so you’re not caught short. There are many online tools you can leverage to get the most out of your accounting software. The most effective apps and online services integrate with your existing software—for example, cloud-based options like Xero. This integration allows for a seamless flow of information between programmes
and processes. When online accounting programmes ‘talk’ to each other, SMEs get the most out of information collation. Whether or not you choose to adopt a cloud-based software programme, make sure you get your ducks in a row for the coming financial year to ensure there are no PAYE road bumps. ■ To find out more about payroll in Xero, go to www.xero.com/nz/payroll About the author: Craig Hudson is Xero’s Country Manager for New Zealand. Craig has been with Xero for several years, having returned to NZ from the UK, where he led Xero’s entrance into Europe, the Middle East and South Africa markets. In his current role, Craig is a key member of the global sales leadership team, responsible for driving relationships with government, financial institutions, enterprise, and promoting the small business economy. Craig is a father of four and a successful former rugby player who spent more than eight years playing professionally in New Zealand, France, England and Wales.
SMART BUSINESS
Business security As we approach the holiday period, things get busier… and so do criminals. BNZ offers some tips on keeping it safe. AT THIS TIME of year, increases in physical and online sales present an opportunity for criminals to entice us to provide personal and financial information.
1. Verify any changes in supplier details Invoice fraud has proved to be a significant threat to businesses throughout 2017 and is expected to rise during the holiday period. Criminals compromise email accounts, look for invoices and change account numbers to steal payments. Verify any account number changes with your suppliers, using a known phone number or process. Avoid using phone numbers listed in emails that are sent requesting change, as they may be false.
2. Only open links and attachments on emails from senders you know or are expecting Phishing attempts and malware attacks tend to increase as the holidays approach. Watch out for emails infected with malicious software such as ransomware, which is designed to lock the files on your computers and only allow you to regain access after you have paid a ransom. Phishing emails are designed to make you click on a link and enter personal or financial information, such as credit card data. Report them to the organisation they are imitating and then delete these emails.
3. Consider what you share on social media Keep business and personal posts separate where possible. Check the privacy settings on your pages so that you’re only sharing information you allow, with people you know and trust. While you might want to share the exciting news that you’re off on holiday, you’re also publishing that your house may be empty while you are away.
4. Be aware when using public wi-fi s tempting as it may be to use free wi-fi, A it potentially opens the door for others to see what you’re doing online. Avoid using banking services, password stores and online shopping when you’re on unsecure networks.
5. Increased storefront traffic and business hours If you have a physical front to your business, ensure that any festive decorations aren’t blocking the cameras, and make sure that your security system is in working order. If you’re taking a break over the holidays, don’t leave deliveries in unsecured locations. Have someone available to collect the items and sign for them, or ensure you cancel these while you are closed.
6. Preventing equipment theft Your vehicle and equipment can be an easy target for thieves, so take extra care over the holiday period to keep them safe and secure. We recommend using ABUS Close Shackle Padlocks to lock away your tools. Make sure equipment is not left unattended in your
watch out for emails infected with malicious software vehicle. If possible, park your vehicle off the road in a secure premises if you are not using it during the holidays. It is also a good idea to check that your alarms are functioning correctly and activate them when you are away. Finally, make sure you’ve got business specific insurance for your business vehicle and equipment so, if something does happen, you are covered.
7. Trust your instincts If you sense that something online or in an email doesn’t look or feel quite right, just pick up the phone and check. Verifying information may take an extra couple of minutes, but it can potentially end up saving you a whole lot more. ■ Check out more security information at www.bnz.co.nz/support/security and take a look at cert.govt.nz for information on common security threats.
December 2017/January 2018 55
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Got your NZBN?
SMART BUSINESS
The NZBN is transforming the way Kiwis do business. Are you ready? THE NEW ZEALAND Business Number (NZBN) has been designed to save you time and effort when doing business. Over time, the NZBN will create a transactional environment with greater certainty of identity, more reliable information and less duplication.
How does it work?
The NZBN is a unique number used to identify a business. All businesses in New Zealand can have an NZBN, whether you’re a big corporate, a self-employed gasfitter or a small local plumbing firm. Your NZBN is linked to the key business information you most often share with other businesses and government agencies—like your trading name, phone number and email address. Working in the plumbing industry means dealing with a large variety of customers and suppliers. By holding your business information securely in one place, you’ll save time and money because you won’t have to repeat the same basic details over and over again. Because you own the information that’s held on the NZBN Register about your business, it’s quick and easy to keep this up to date. Through the NZBN Register, your customers, suppliers and government agencies can instantly see that your business is real and tangible—giving them peace of mind in dealing with you. In turn, you can see the key information of businesses you work with, making it faster and easier to connect and transact with them.
What’s the benefit?
By streamlining business processes and making it faster to share information, the NZBN will offer you a range of benefits over time. Some initial benefits include: • •
Financial transactions will be smoother, as new ways to invoice customers, pay bills and apply for credit will be enabled Procurement will be more efficient and transactions such as onboarding new suppliers and customers will be faster and simpler
•
•
The NZBN Register will offer you more certainty about the businesses you work with—reducing risk and resulting in better decision making Businesses will be able to see supply chains, build trusted networks, improve customer service, and a whole lot more.
The future of business
More and more organisations are building the NZBN into their systems and processes right now, in areas like finance, procurement, customer relationship management, tenders, reporting and more. These businesses may be your customers or suppliers now or in the future, and they’ll begin asking for your NZBN as part of doing business with you. No matter what your business size, you can get and use an NZBN. Visit nzbn.govt.nz now to get yours. ■ Want to learn more? Visit nzbn.govt.nz or call 0508 696 926.
CLASSIFIED ADS
The cost to advertise is $60+GST for Master Plumbers' members; $100+GST for nonmembers. Just send your text (up to 100 words) to advertising@masterplumbers.org.nz
Plumber & Foreperson/Team Leader sought The University of Otago is looking for one experienced Plumber and one Foreperson Team Leader to join our in-house Plumbing / HVAC Engineering team. These challenging positions have a great variety of work across our Dunedin campus. Are you looking for the opportunity to work on different types of plumbing systems in a mixture of heritage / non heritage buildings?
Main duties include: • General plumbing and gas fitting repairs and maintenance; • Alterations and installations This position requires a person who can work under minimum supervision with good communication skills. Send a CV to yourcareer@otago.ac.nz or call David – 03 479 4082
December 2017/January 2018 57
SMART BUSINESS
Be tax ready
When you take holidays, your tax obligations don’t. Chris Cunniffe outlines steps to ensure you’re ready for January’s payments.
HAVING TWO IMPORTANT Inland Revenue payments—provisional tax and GST—due on 15 January is never going to win most people’s favour. After all, this is a time when business activity slows down and cashflow can become an issue as many of us take time off work to enjoy the delights of a Kiwi summer. Even the tax specialists (accountants) are quick to trade the office for the beach, BBQ and good weather. However, having to pay the IR in January is a reality that many plumbers face. And it’s important to face it because the taxman charges usurious interest (currently 8.22%) and late payment penalties to taxpayers who do not pay on time. So, as the sun sets on the working year, what can you do in the lead-up to Christmas to make sure you are taxready in January?
check who owes you money and see if they can pay early
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December 2017/January 2018
A few business basics spring to mind. Many of you are probably already doing these (apologies if it seems I’m teaching you how to suck eggs), but the small things can make a big difference. Start by doing a financial review. Make sure you have accurate information to hand and that your books are up to date. This will give you an indication of how your cashflow is placed. Next, work out what you are going to need to cover expenses during the period you are off work until you start earning again. The beauty of doing a quick budget is it allows you to identify any problems you may encounter. In terms of optimising your cashflow, make it a priority to complete jobs that can be finished quickly so you can bill clients and have money in your bank account before you clock off for the year. Be sure to check who owes you money and see if they can pay early. Incentivise early payment by offering a discount. For outstanding invoices, be persistent and chase, chase, chase. Conversely, if you owe creditors money, see if you can come to an arrangement to settle what you owe later. Last, but not least, you can use an IRapproved tax pooling intermediary either
having to pay the IR in January is a reality that many plumbers face to defer payment of your 15 January provisional tax to a date in the future or to pay what you owe in instalments. When you pay through an intermediary, you incur an interest cost that is lower than what IR charges for unpaid tax, but you get to keep cash in your business at a time when you need it most or for things that are important. As always, do not forget to speak with your accountant. They can recommend options that help with your 15 January tax obligations. ■
Chris Cunniffe is the Chief Executive of New Zealand’s largest tax pooling intermediary, Tax Management NZ (TMNZ). He is also the former head of tax at BNZ and Air New Zealand.
SMART BUSINESS
From the IR: Beware cashies IN A HARD-hitting campaign from Inland Revenue, tradespeople are being reminded that every undeclared cash job leaves a trail. The message started appearing around Auckland, Wellington and Christchurch in mid-October as part of a long-running programme to address tax crime in the building and construction sector. Investigation work into the hidden economy uncovered $159 million worth of unpaid tax in the past year. Inland Revenue Marketing and Communications Group Manager Andrew Stott says research shows that, although most are doing the right thing, a large proportion of undeclared cash jobs are being paid for services like building, plumbing, painting and electrical work. “There’s a misconception out there that this work flies under Inland Revenue’s radar but undeclared income leaves a trail, which can be easily uncovered when looking for irregularities in a tradie’s books. “You place yourself in a difficult position when you accept these jobs, so the best advice is to record everything, declare every dollar and make sure you’re charging GST if required.
“If you have been doing undeclared cash jobs, we can help you get back on track.” A recent Inland Revenue survey found a quarter of respondents were still prepared to pay their tradesperson with cash compared to 35 percent when the question was first asked six years ago. “It’s great that fewer people are paying cash jobs,” says Andrew Stott. “More people are aware that not declaring them is against the law. They’re grossly unfair on the tradies who play by the rules, and they take away funding earmarked for improved public services. “We’re trying to make people in the construction industry aware that there’s a risk associated with not declaring a cash job. Hopefully this makes them think hard about whether that risk is worth it.” ■ Inland Revenue can help tradespeople do the right thing at www.ird.govt.nz/getitright. The web page includes a video of some Kiwi builders talking about why declaring all their income is important for their business and reputation.
Planning for retirement? THREE OUT OF four small to medium businesses in New Zealand plan to fund their retirement by selling their business, yet 30 percent say the business wouldn’t survive without them— and 47 percent have no exit plan in place. These findings are from research released in November by Xero. “The lack of planning and forward thinking by SME owners about the succession of their business is concerning, as many Kiwis will be impacted when these business owners decide to sell up or exit the company,” says the company’s NZ Country Manager Craig Hudson. “The fact a third of owners haven’t even spoken to anyone regarding what happens to their business once they exit means they haven’t thought about who their potential buyers are, how much the business is worth and whether the business would survive without them. “Any business owner who has put in the time, money, blood, sweat and tears to build their company would want to keep it thriving, and any owner looking to retire needs to find someone competent to take over,” he says. “The best way to make sure of that is to develop a succession plan.” Xero’s five tips are to get an advisor on board, get your books
Every undeclared cash job leaves a trail—is it worth it?
A recent survey shows many SMEs are ill prepared for retirement.
in order, decide whether you’re going to remain involved in the business in some capacity or exit completely, and give yourself time to come to terms with the changes ahead.
December 2017/January 2018 59
NEXT GENERATION
WorldSkills Abu Dhabi THE NEW ZEALAND Skills team were proud to bring home a Gold medal and no fewer than five Medallions of Excellence from the 44th International WorldSkills Competition, held in Abu Dhabi from 15-18 October 2017. Congratulations go to plumber Hunter Turner, of Master Plumbers’ member business JJ Plumbing in Auckland, who was among the Medallions of Excellence winners in the NZITP Skills Team of 13 (see table opposite). Hunter came in 8th place out of 29 Plumbing and Heating Skill Category competitors. The plumbing competition was marked out of 800 points, with the Gold medal winners earning 729 points. Nine competitors received Medallions of Excellence for gaining over 700 points, including Hunter for getting 712. Mark Jordon, Hunter’s employer, must also be congratulated for training and supporting him in achieving such a successful result. All the New Zealand Skill Managers arrived in Abu Dhabi five days out from the competition and were busy helping prepare for it. For the Plumbing & Heating Skill Managers, this included voting on the 30 percent change to the test project, checking that all the materials and equipment were available for the competitions, and helping the competitors prepare on the familiarisation day. 60
December 2017/January 2018
Plumbing and Heating Skill Manager Bryan Smith looks back on a successful International WorldSkills Competition for the Kiwi team.
Top: Hunter Turner using the butt-welding machine. Above: Lining up the offset for the copper gas pipe.
NEXT GENERATION
Skill Category
Name
Awards
Plumbing and Heating
Hunter Turner
Medallion of Excellence
Welding
Andrew Champion
Aircraft Maintenance
Jarrod Wood
Gold
Electrical Installation
Chabbethai Chia
Medallion of Excellence
Industrial Control
Logan Sanders
Carpentry
Todd Hamilton
Floristry
Nicole Keeber
Automotive Technology Logan Candy Medallion of Excellence
Cooking
Nicholas Todd
Restaurant Service
Kimberley de Schot
Car Painting
Alex Banks
Graphic Design
Sarah Browning
Medallion of Excellence
Industrial Mechanic Millwright
Shea Keir
Medallion of Excellence
Above: Hunter’s completed project.
On this day, the competitors were given access to the equipment that was going to be used for the competition, including the HDPE butt-welding equipment, as well as a small quantity of each of the pipe systems that were going to be used. This allowed each of the competitors to re-familiarise themselves with the accurate bending of the steel heating pipe and to practise soft soldered joints for copper. The competition ran for 22 hours, spread out over four days.
•
Plumbing project
• •
The project the Plumbing & Heating competitors were asked to complete consisted of: •
Design (with the aid of a plan and side elevation drawing or an isometric drawing), quantify and install an indirect
• •
• •
pumped solar hot water heating system in copper. A heating system, using external galvanised carbon steel heating pipe with compression fittings, consisting of a continuous gas hot water heater servicing a water heated towel rail, a radiator and a second coil in the storage hot water cylinder. A cold water PEX system feeding the HWC, kitchen sink, WC, shower and WHB. Circulating hot water PEX system supplying the kitchen sink, shower and WHB. Copper gas line supplying the continuous gas water heater. HDPE waste pipe system servicing the WC, kitchen sink, shower and WHB. Installation of close couple WC, pedestal WHB, shower mixer and rose. Commissioning the sanitary fixtures. >
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December 2017/January 2018 61
NEXT GENERATION
Above: The international Plumbing and Heating Group. Far right is Shayne La Combre, Chairman of the World Plumbing Council, who presented the medals.
Day 1 By the end of the day the contestants had to complete the solar hot water heating system and all the pipework associated with the HWC up to the isolating valves—and, if possible, start on their heating system.
Day 2 By the end of the day the heating system needed to be installed and the pressure test passed. During days 2 and 3, the eight HDPE butt-welding machines were rotated around the contestants, with each having three hours to complete the waste pipe system.
Above: The NZITP Skills Team. 62
December 2017/January 2018
Worldskills International facts and figures • • • •
1,300 – the number of competitors 60 – the approx number of member countries and regions 51 – the number of skills categories at the event 13 – the number of competitors in the NZITP Skills team
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Day 3 The copper gas main had to be installed and pressure tested.
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Day 4 Project completion day. The hot and cold water systems had to be completed and pass the pressure test; the HDPE waste pipes installed; and the sanitary fixtures installed, commissioned (water turned on), and the operation and maintenance demonstrated to a judging team. In the afternoon, all the competitors and their experts were invited to gather at the IAPMO (International Association of Plumbing and Mechanical Officials) stand, and each person was presented with a medal from the World Plumbing Council as well as a two-year Honorary Individual Membership for the competitors. ■
Thanks go to… Worldskills NZ would like to thank 2015 International competitor Adam De Pass, who took annual leave over a long weekend to travel up to Hamilton three weeks prior to the Abu Dhabi event. His expertise in helping Hunter with his final preparation was invaluable. I couldn’t have managed the weekend without the help of the Worldskills NZ Deputy Manager Paul Dempster (Open Polytech Tutor), who also took annual leave to be there. A very big thank you goes out to our sponsors The Skills Organisation, Mico Te Rapa, Plumbing World, Placemakers, SPK, Felton, Marley, Dux, Kembla, Caroma, Rheem, Masterlink, ATT, Edward Gibbon, Plastic Systems, Hydroflow and RMC. A special thanks goes to Wintec for making their facilities available, storage of materials and weekend training. Without all your support Hunter could not have achieved the result that he did. This says a lot for our industry in New Zealand—with everyone’s input we are right up there, with the best in the world. The search begins again for a young plumber to represent New Zealand at the next Worldskills competition, being held in Kazan in Russia. If you will be under the age of 23 in November 2019, you are eligible to attend. Employers, if you have someone that fits within the age criteria and they are interested, please encourage them to find out when the regional competitions are and enter the one for your region. The winners for each of the regions will travel to Hamilton to compete in the Nationals. For further information, please contact Bryan Smith: bryan.smith@worldskills.org.nz; 022 091 0535.
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NEXT GENERATION
10 of the best
Plumbing World reports back on its first-ever Young Plumber of Year event. THE INAUGURAL YOUNG Plumber of the Year final in Hamilton was a massive success. Nearly 200 people came along to support the 10 finalists, who all did an exceptional job in representing themselves and our industry. All 10 spent the day before the competition in Auckland and were taken to a number of factory visits from sponsoring suppliers, which the guys found extremely educational and fun. On game day, the finalists were put to the test with a demanding 30-minute questionnaire/exam, followed by an even more demanding three-hour practical test. Contestants were faced with a freestanding frame, product, tools and a basic plan to follow. This was a basic bathroom install with behind-the-wall (piping a Rheem cylinder, Nefa valve train, simple Dux hot/cold water system with Marley pipe for a vented sanitary line and waste) and front-of-wall product (involving fixing a Felton Shower mixer/ slide shower, Toto basin, Methven mixer, Caroma pan and inwall cistern). All this within the allotted three-hour timeframe! They were cheered on by everyone, including All Black Captain Kieran Read, and Young Plumbers Club ambassadors Logan Dodds and Jesse James. The winner on the night this year, taking out the top prize, was Julian Parker from Rotorua, who works for The Lewis Plumbing Company. Rob Kidd, Plumbing World GM notes: “The camaraderie being developed through the Young Plumbers Club and Young Plumber of the Year is absolutely fantastic, with many friendships solidified and, as a result, lots of industry contacts made for our contestants.” “It was also great for the event to raise the overall industry's profile and receive lots of media coverage across 7 Sharp on TV One, The New Zealand Herald, Stuff and the Rotorua Daily Post online,” says Rob. “Many thanks to all our sponsors, including Master Plumbers and Masterlink—your support is greatly appreciated.” Plumbing World’s Young Plumbers Club is all about helping to attract and retain people in our industry, and amongst the prize pool, Julian won a trip for two to next year’s ‘Plumbing World Fun times in Fiji’ convention. 2018 is shaping up to be an even bigger competition, so keep a look out in the New Year. ■
Above: Master Plumbers and Masterlink were among the event sponsors. 64
December 2017/January 2018
Above: Contestants had to carry out a three-hour practical test.
Above: Julian towards the end of the practical assessment.
Above: Julian celebrating his win with (from left) Plumbing World General Manager Rob Kidd, boss Jon Lewis of The Lewis Plumbing Company and Plumbing World brand ambassador Kieran Read.
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For further information regarding our range of designer towel rails contact Central Heating New Zealand today Above: The judges assessing the finalists’ work.
Congratulations to all finalists All 10 finalists work for Master Plumbers member businesses!
Finalist
Company
Hayden Findlay
Quix Commercial
Dylan Plowright
BT Plumbing
Julian Parker
The Lewis Plumbing Company
Alex Hyland
Steve Wolter Plumbing
Jason Gamble
PJ Plumbing
Andrew Nickson
Hutt Gas & Plumbing Services
Aaron Partington
Precision Group
Josh Ratten
Layne Watson Plumbing
Daniel Warren
Hi Flo Plumbing
Hamish Van Der Klei
Queenstown Plumbing P: 0800 357 1233 E: info@centralheating.co.nz w: www.centralheating.co.nz
NEXT GENERATION
Masterlink round-up
It’s been a year of intense activity for Masterlink, with several positive initiatives introduced— including a new look.
Poaching qualified staff from other firms is not going to protect our industry into the future, said Master Plumbers and Masterlink CEO Greg Wallace at this year’s half yearly meeting. Training apprentices, however, will. Only 19 percent of nationwide plumbing firms currently train apprentices (for Master Plumbers member businesses that figure is a healthier 36 percent). In a bid to increase these stats, Masterlink and Master Plumbers have been lobbying for financial assistance for employers who do take on apprentices. In its 100 Day Plan, the government is promising support for employers to train 4,000 apprentices and we wait with interest to see how this will be provided. In other advocacy work, Master Plumbers and Masterlink have raised concerns with the Tertiary Education Commission and The Skills Organisation about the consistency of PGD training delivery across New Zealand’s training providers. As a result, Skills is to conduct an independent review. With new apprentice qualifications launching in 2018, we have provided feedback and support to Master Plumbers regarding the Level 3 and Level 4 qualifications. Master Plumbers has worked closely with Skills and the Plumbers, Gasfitters and Drainlayers Board to help ensure the qualifications meet industry needs in the 21st century.
New appointments This August, Tania Forsyth joined the Regional Manager team of four to support Masterlink hosts and mentor their apprentices in the Northland and Auckland region. Watch this space for news of a second Auckland Regional Manager to handle the workload in what is the busiest building and construction market in New Zealand. In November, Lower North Island Regional Manager Bob McCoy was appointed to the role of Masterlink National Business Manager, working closely with all Regional Managers to develop and grow the scheme. Bob will continue in his existing role, so it’s business as usual for hosts and apprentices in the region. Due to the volume of candidates applying to Masterlink for apprenticeships, Masterlink HR Advisor Lisa Duston now has part-time support to help handle our robust recruitment process. This includes phone, face-to-face, medical, drug and attribute testing to ensure only the highest quality applicants make the grade.
Apprentice stars It’s hard to know where to start with our apprentice highlights during the year. In April, we celebrated Masterlink apprentices 66
December 2017/January 2018
Photograph from Leaving School Issue #10 by Oliver Lee Publications Ltd.
Advocacy work
Above: Masterlink apprentice Gavin Wilding recently featured in Leaving School magazine.
Brendan Baker, Josh Edwards, Robert Harrop, Braden Lawton and Tane McGuire receiving Plumbing World Scholarships at the New Zealand Plumbing Awards, each receiving $1,000 to spend at Plumbing World. James Douglas Medallion overall winner Kris Rangitaawa also did his apprenticeship through Masterlink. Kris is now a registered plumber and gasfitter at Plumbing & Gas Works in Hamilton, who say he is an asset to the firm for his professionalism and high-quality work. The two finalists were also Masterlink apprentices: Colby Baker in Drainlaying and Andrew Ranger in Gasfitting. Masterlink was a Gold Sponsor of Plumbing World’s inaugural nationwide Young Plumber of the Year, and several of our apprentices took part in the competition, including Ben Stanley in Hastings, Jarrod MacLean and Brendan Baker in Tauranga, Dave Hodgson in Rotorua, Daniel Warren in Oamaru and Lauren Phillips in Invercargill. Lauren and Daniel made it to their regionals, with Daniel, who works with host Peter Ryder at Hi Flo Plumbing, going on to the national finals (see p64.) What an achievement! It has been great to see Masterlink apprentices Gavin Wilding, Esmey Parata and Lauren Phillips featuring in regional, trades and careers media during the year. You may also have seen Esmey on the cover of the last edition of NZ Plumber.
Promoting our trades With plumbing business owners in many parts of NZ in desperate need of extra hands, Masterlink has been hard at work promoting and placing apprentices. The team were out and about promoting careers in plumbing, gasfitting and drainlaying to school leavers. In May and June, we attended the NZ Careers Expo—the country’s leading careers event—held in Christchurch, Auckland, Hamilton and Wellington, with prizes for students who could assemble a double trap in double quick time.
NEXT GENERATION
In November, we had a stand at the CATE Conference in Invercargill to help get us in front of careers advisors and youth educators. The theme of the event was changing perceptions about trades careers—something we are passionate about. Masterlink and Master Plumbers also shared a Above: Regional Managers Dave McGall and Tania Forsyth at one of the Got a stand at this year’s CPD Trade Speedmeets. trade shows. And this November, we attended four Speedmeet events, hosted by Got a Trade in conjunction with Skills. It was a great opportunity to meet students from local colleges in Upper Hutt, Christchurch and Auckland, who are interested in a plumbing career.
Health and safety The Masterlink apprentice app makes it easy for our apprentices to report any accidents, incidents and near misses. During the year, a Hazard Report Form was added to the app, enabling apprentices to report and photograph potential workplace hazards. Safety Data Sheets on the app will also our apprentices Above: Masterlink H&S rep Josh Kenyon. comply with the new Hazardous Substances Regulations. In the spirit of the new Health and Safety Act, we are encouraging apprentice engagement with health and safety in the workplace. We have appointed an apprentice member to Masterlink’s Health & Safety Rep team. Welcome and thank you to willing volunteer Josh Kenyon. Masterlink apprentices can use a new Social Wall feature on the app to raise any health and safety issues with Josh. Masterlink once again received tertiary level ACC accreditation for our Workplace Safety Management Practices during the year. “It’s great recognition of the focus we place on ensuring a safe and healthy workplace,” says Operations Manager Kate Jenkins.
All systems go Paper timesheets are now a thing of the past at Masterlink. A user-friendly online apprentice timesheet process was rolled out during the year, with full training provided for all host business. The new online payroll system has had positive feedback from hosts, with many wanting to use it within their own businesses. We have also introduced the BWARE system to collate reporting of any accidents, incidents, near misses and hazards by our apprentices.
Sign-ups and certificates We’d like to congratulate all our National Certificate recipients in 2017: Kelly Adam, Mason Anstis, Michael Armitage, Brendan Baker, Jarrod Bryan, Liam Driver, Gregory Ede, Jared Frew, Harry Gedye High, Harrison GreyBird, Ian Hill, Michael Judd, Above: Matt Park receiving Alex Mitchell, Matt Park, Glen his National Certifcate from Robertson, Gus Wilmot and Isaac Regional Manager Tania Forsyth. Wairau. >
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December 2017/January 2018 67
NEXT GENERATION
There is currently some cautiousness in the market. Some companies are holding off signing up apprentices until the New Year, as they wait to see if there will be government funding for employers. By mid-November, Masterlink had 59 sign ups
nationwide—slightly under the 2016 figure of 61, but an increase on all previous years. Sign ups in Auckland are lower than last year due to staffing changes in the region. However, all other regions are ahead of last year’s sign-up numbers. National Sign Ups 2017 YTD
YTD 2015
YTD 2016
YTD 2017
70
Auckland & Far North
13
19
10
50
Central NI
5
10
11
40
Lower NI
10
14
17
30
Upper SI
0
4
6
20
Lower SI
19
14
15
10
Total sign-ups
47
61
59
0
Region
60
YTD - 2015
YTD2 - 2016
YTD - 2017
Market update Masterlink is the only specialist plumbing, gasfitting and drainlaying mentored apprentice scheme in New Zealand and any profit made is reinvested into the industry. If you are a successful business wanting a succession plan, or just wanting to grow, please contact the Masterlink Regional Manager in your area. Details at www.masterlink.co.nz Here, our Regional Managers provide their market update.
I’d like to say thanks to all the Auckland and Northland hosts who are doing a fantastic job. I feel thankful to be helping them with their business growth plans.
for sign-ups. As I travel around the region talking to plumbers, I am constantly reminded how busy everyone is. As we approach the festive season, the customer panic has started as they all want jobs Masterlink Central North completed yesterday. Demand is high Island Regional Manager: and, with the lack of qualified tradesmen Dave McGall looking for employment, there is no The Central North Island better time to take on an apprentice—or has continued to develop at least sign them up now to start in the throughout the year, with a New Year. The construction industry good number of apprentices signed up in is set to continue to boom for at least 2017. New hosts also continue to come on Masterlink Auckland the next 10 years, so this is a great board, and the area has grown with hosts and Northland Regional opportunity to train quality apprentices now throughout the Volcanic, Bay of Plenty, the way you want the job done. Talk to Manager: Tania Forsyth & Waikato regions. The Auckland region me with your requirements. I will find We’ve developed our relationships with accounted for 37 percent of you the right one. secondary schools through this year, which all building and construction has increased our applicant numbers. activity in NZ in 2016, and accounts for 41 Masterlink South Island 2018 is already looking encouraging. percent of the forecast value from 2017 to Regional Manager: The new qualification, along with a the end of 2022. Auckland had 12 percent Roger Herd growth in building and construction in 2016, number of companies trialling their future By November this apprentices, looks to increase our numbers year, there had been 21 and continued demand is expected, which in the early part of the year. would result in 38 percent more growth. sign-ups in the South, This is forecast to be sustained after levelling including two females, which is good Masterlink Lower North out in 2020. Both new host and apprentice to see. The market in Oamaru is flying, numbers are on the increase and I have been Island Regional Manager: as are Tekapo, Otautau, Wanaka and Bob McCoy busy attending trade shows, Speedmeet Queenstown. Dunedin and Invercargill Growth has continued in events and school careers evenings to help have remained stable during the year, the Lower North Island, encourage the next generation into the with most Masterlink hosts satisfied with and it has been a great year industry. their apprentice numbers. 68
December 2017/January 2018
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December 2017/January 2018
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AND FINALLY
Offcuts
This edition’s media snippets of the plumbing kind. That’s my swamp
Florida’s Cape Coral is a disaster waiting to happen, according to an article in The New Zealand Herald in October. Built in the 1960s from ‘a soggy floodplain’ of drained mangrove swamps just 1.5m above sea level, it is now one of America’s fastest growing developments. The town was designed without water or sewer pipes, says the article. Developers dug 643km of canals (more than Venice) to act as both selling point and stormwater plumbing. Water from a salty pool 250m underground must be treated to make it fit for consumption. Cape Coral also narrowly escaped Hurricane Irma in September. Residents were ordered to evacuate, but the Red Cross declared the town too vulnerable to bother opening shelters, as it is so low to the sea, according to the article.
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December 2017/January 2018
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Behind the eight ball?
Construction firms across NZ are struggling with the uptake of even basic digital technology, reported Stuff in October. A Spark survey of 270 construction firms showed only 23% felt they had the digital skills to perform their jobs correctly and understood what could be done online. According to the survey, small to medium sized construction firms (fewer than 100 employees) were also less likely to have an online presence than any other sector. Apparently, time to learn skills was a major factor. Digital skills could make a big difference to efficiency, said the article—and having a company website was ‘the tip of the iceberg’. Modelling, prefabrication and robotics were all things that would eventually make a major difference to the construction sector’s low productivity rate, it noted.
Game of drones
A Spanish firm is pioneering a drone project to speed up and improve the inspection of Barcelona’s 1,500km sewerage system, reports WaterWorld magazine. The aerial robot (somewhat unfortunately known as ARSI) is equipped with multiple sensors to monitor water and air quality, including a 3D camera to calculate its position and a 2D laser to detect walls and calculate flight paths, says the magazine.
If it’s good enough for the Queen… Some of the 108 shops around the world where the Queen gets her groceries were revealed in a recent article in UK newspaper The Telegraph. To get a spot on the Royal Warrant register and the right to bear a coat of arms on its packaging, all must have supplied the Royal Household for more than five years, according to the article. But it’s not just food and drink that gets on the list of the best of the best. “The register stretches to more than 800 names, with other firms providing anything from tailoring and plumbing to cleaning and cars.” Take a bow, A Hester Ltd, says the article, for being the Royals’ preferred septic tank services company.
AND FINALLY
DODGY Plumbing Keep them coming! Send your Dodgy Plumbing examples to the Ed: beverlysellers@xtra.co.nz
A bumper double-page Christmas edition…
On a lean
Barry Stewart of Barry Stewart Gas came across this water heating installation in Invercargill and informed the PGDB and Energy Safety.
Living dangerously
“What can happen when a valve is installed wrongly and the expansion of the system is not allowed for fully—luckily no one got hurt,” says Martin De Gouw of Clyne & Bennie Plumbing, who sent in these photos.
And more dangerously still...
“On inspection there are several issues at this property that require attention due to being potentially quite dangerous and possibly being able to cause significant damage around the cylinder and the vent,” adds Martin De Gouw. Please send the biggest size photos you have. The bigger the file, the bigger we can show it on the page!
Round the twist
Bend your mind to this one, sent in by Bruce Trenwith of BT Plumbing in Auckland.
December 2017/January 2018 73
AND FINALLY
Not a bar of it
This anonymous entry is of a dodgy job done at a Hamilton bar.
Long-distance runner
“Another dodgy homemade plumbing and gasfitting installation,” says Chris Downey of Tuffnell Plumbing in Nelson. “Of course this has now been put right.”
Old potboiler
“Photos of a discovery in an old South Dunedin house,” says Alan Sorrell of Barry Dell Plumbing. “Valve on top of pipework to allow you to fill up pots with hot water; a rubber radiator hose for seismic and thermal movement; and the radiator cap on the bottom to allow for easy draining and as a temperature/pressure relief. “This way when it boils it will spray boiling water down and at a lower level, thus making it somewhat safer—because if it was at the top it could spray up and all over the place, thus causing a serious injury (LOL). You may also notice the conveniently installed isolation valves to make further maintenance a breeze (LOL).”
A bob each way
“Found this on a low pressure cylinder. I guess they weren’t sure if it was a mains pressure cylinder or a low pressure so they’d fitted both valves. That’s diy farmers for ya,” says Tim Charlton at Tauranga Plumbing. 74
December 2017/January 2018
When you want something done properly‌ Training a Masterlink apprentice
l Ensures they’re trained the way you like it l Builds quality and loyal employees
l Ensures your apprentice is motivated to do a good job
l You’ll also be training yourself, ensuring you stay up to date with industry developments and technology
0800 502 102 admin@masterlink.co.nz www.masterlink.co.nz
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