TRADE APRIL 2019 LEADER.
Vocational Education Training: What’s the direction from here?
THIS ISSUE n
License Quantity The implications How to avoid Legal suspensions – surveying and and future of cashflow requirements it’s YOUR choice! the LBP scheme KiwiBuild mistakes of a clean site
READING TRADE LEADER can contribute towards your LBP Skills Maintenance requirements.
TRADE LEADER. CARTERS Trade Leader is produced by TLP Media Ltd 11 times a year in association with CARTERS.
MANAGING EDITOR Scott Wilson P: 021 725061 In the frame E: [email protected] BY MIKE GUY, CARTERS CHIEF EXECUTIVE LAYOUT Kaz - Design. Brand. Web.
In this month’s Trade Leader, we took It’s a worthwhile read to understand PRINTER a look at the proposed plans recently your responsibilities as a licensed Nicholson Print Solutions released by the Minister of Education building practitioner. ENQUIRIES Chris Hipkins. This month Stewart Germann Law has TLP Media Ltd, PO Box 21081 Big changes may be on the horizon for provided a legal article surrounding Hamilton 3256 New Zealand’s vocational education the risk you pose to the environment E: [email protected] sector, with the Government calling for on building sites with exposed soil input on a proposal to restructure how and clay and toxic materials such as ISSN 2463-3550 (Print) polytechnics, training organisations paint and cement being washed into ISSN 2463-3569 (Online) and trades training groups operate. It’s waterways. To ensure legal compliance TLP Media Ltd reserves the right to accept or reject a topic that has generated considerable always read the resource and building any editorial or advertising material. No part of feedback and will be interesting to see consent conditions pertaining to your CARTERS Trade Leader magazine may be published or reproduced without the express permission of the just how the trade sectors respond to site before starting a build. publisher. All rights reserved. Opinions expressed the proposals in front of them. in CARTERS Trade Leader are not necessarily those As always the safety of builders on of CARTERS or the publisher. No responsibility is accepted for the suggestions of the contributors or BCITO Chief Executive Warwick Quinn and off site is paramount to us here at conclusions that may be drawn from them. Although has, understandably, had plenty to say CARTERS and to the success of our the publisher has made every effort to ensure accuracy, the reader remains responsible for the on the topic and he has responded industry. There is a thought provoking correct selection of any tools, equipment, materials to the proposal in our fairly extensive article this month from Site Safe, or systems followed, as well as the following of any laws or codes that may apply. article. Whatever the outcome, we addressing the potential dangers of agree this is an important subject we carrying loose tools in moving trade can’t afford to get wrong. vehicles and how you can mitigate any harm by implementing some safe On the Licensed Building Practitioners APRIL 2019 guards. TRADE front, we have two articles in this OFFERS. issue, one relating to the relationships Thanks for reading this issue of Trade
FREE STUFF! between quantity surveying and the Leader and for continuing to partner SWANNDRI RANGER LBP scheme, and the second around with CARTERS. XTREME WOOL SHIRT an issue that has continued to be raised – the suspension of building practitioners’ licenses.
In many of our issues over the past when you spend $3500 (excl GST) or more on any couple of years, we have highlighted GIB® Performance * Plasterboard this month!
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CARTERS TRADE ACCOUNT HOLDERS. have been going on within our industry, FREE STUFF exclusive to many of which have resulted in sanctions against LBPs. In this issue’s CHECK OUT OUR article, MBIE looks at the different APRIL types of license suspensions, why they MIKE GUY have happened and how to avoid them. TRADE OFFERS. CARTERS Chief Executive INSIDE THIS ISSUE
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10. EDUCATION 24. LBP RESISTANT TO DAMAGE FROM MOISTURE Built-in water repellent barrier 6. INDUSTRY NEWS 18. BUSINESS 23. HEALTH & SAFETY Public consultation on building SEVEN TIPS TO BETTER CARGO BARRIERS - SAFETY SENSE legislation, workplace injury CASHFLOW Sometimes the biggest threat to prevent grants, Site Safe certificate Every trade business goes through people in a head-on crash is all programme, designing for access cashflow problems at some point. It’s the things that are behind them. In and usability, healthy home part of being in business. These top a collision between two vehicles, standards released. seven mistakes are the ones which unsecured tools and cargo can cause the most damage and stress. become painful, if not deadly, missiles in an accident. Construction safety training organisation Site Safe says 8. LICENSED BUILDING 20. LEGAL PRACTITIONERS putting a barrier between people and NOTIFIABLE EVENTS objects makes good sense. SUSPENSIONS If a “notifiable event” happens at your There are several types of licensed workplace, you are required to notify building practitioner (LBP) licensing Worksafe. But what is a notifiable 24. LICENSED BUILDING suspensions: voluntary, relicensing, or event, and what else do you need PRACTITIONERS disciplinary. This article looks at how to know from a legal perspective QUANTITY SURVEYING they all work. to ensure you are meeting your As an LBP, keeping up to date with requirements? Andrew Skinner looks the latest information is paramount to more closely at the information you running a successful business. This 10. EDUCATION should be aware of. article contains some tools and tricks Building a great home, one that’s built to last, RAB Board wont shrink or warp, so it results in TRADES TRAINING CHANGES for Small Medium sized Enterprise is the result of good building practice and the a flatter more professional finish. (SME) builders from a Quantity Wide ranging proposals to reform 21. LEGAL very best building products. Products that are So to build a home that will stand the test of New Zealand’s Vocational Education Surveying perspective. CLEAN BUILDING SITES Training system (VET) have been specifically designed to perform at a higher level time build with RAB Board from James Hardie Building sites pose a risk to the to traditional building paper. roundly rejected by the building and environment as everything that enters 28. ECONOMICS PERFORMANCE THAT WORKS construction sector following a sector a drain from a building site goes KIWIBUILD UPS AND DOWNS RAB Board not only has resistance to damage summit in Auckland recently. jameshardie.co.nz straight into waterways. Builders can Slow progress with KiwiBuild has from moisture and fire, its also quick and easy be subject to fines of $750.00 if they meant the targets of 1,000 completions to install and allows early close in. do not manage the main risks and, in in the 2018/19 June year and 5,000 in extreme cases, $750.00 per day if the 2019/20 have been dropped, although events continue. the target of 100,000 new homes over RBJH0001R 10 years remains.
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5 INDUSTRY NEWS Healthy homes Public standards released NEW HEALTHY HOMES STANDARDS, ANNOUNCED RECENTLY BY consultation: HOUSING AND URBAN DEVELOPMENT MINISTER PHIL TWYFORD, overhaul AIM TO MAKE RENTAL PROPERTIES WARMER AND DRIER. The standards set minimum ground moisture barrier to stop for building requirements for heating, insulation, moisture rising into the home ventilation, moisture and drainage, • The standards also reinforce legislation and draught stopping in residential existing law that says landlords rental properties. They reflect must have adequate drainage feedback from a wide range of AFTER DISCUSSIONS BETWEEN and guttering to prevent water public health experts, stakeholders GOVERNMENT AND THE entering the home. including landlords, tenants and BUILDING SECTOR IN 2018, • Draughts that make a home building experts. LEGISLATION CHANGES harder to heat will have to be THAT ARE SET TO IMPROVE The new standards are designed to blocked. PERFORMANCE OF THE help make rental homes healthier for Compliance timeline for the new BUILDING SECTOR HAVE BEEN tenants and state that: standards: IDENTIFIED, AND YOU CAN • All rental homes will be required • 1 July 2021 – From this date, HAVE YOUR SAY ON THESE to have a heater that can heat the private landlords must ensure that o CHANGES. main living area to 18 C. their rental properties comply with MBIE says there’s no question • Rental homes must have ceiling the healthy home standards within a number of challenges across and underfloor insulation that 90 days of any new tenancy. the entire building system are either meets the 2008 Building • 1 July 2021 – All boarding houses preventing the building and Code insulation standard, or (for must comply with the healthy construction sector reaching its existing ceiling insulation) has a home standards. potential. Low productivity, skills minimum thickness of 120mm. • 1 July 2023 – All Housing New and labour shortages, and how • Rental homes will also be drier Zealand houses and registered costs are allocated when things under these changes as kitchens Community Housing Providers go wrong are issues the sector is and bathrooms will have to have houses must comply with the currently facing. Within the building extraction fans or rangehoods. healthy home standards. regulatory system, roles and • Where rental homes have an • 1 July 2024 – All rental homes must responsibilities are unclear, there’s enclosed subfloor space, property comply with the healthy home insufficient information to help owners will need to install a standards. perform roles, and an inability to hold people to account when things For more information on the healthy homes standards visit the Ministry of go wrong. Housing and Urban Development website - https://www.hud.govt.nz/ To address these regulatory inefficiencies, government is considering changes to the areas ACC launches new workplace injury of risk and liability, building product and occupational regulation. Within prevention grants and subsidies occupational regulation, the focus is on the regimes for licensed KIWI BUSINESSES ARE NOW ABLE TO MAKE A BID FOR A SHARE OF A NEW building practitioners, engineers and $22 MILLION DOLLAR FUND THAT’S BEEN CREATED TO HELP IMPROVE plumbers, gasfitters and drainlayers. WORKPLACE HEALTH AND SAFETY OVER THE NEXT FIVE YEARS. Ultimately, the result of any Two types of assistance will be available – workplace injury prevention grants changes must be safe and durable and subsidies. buildings. This is dependent on Injury prevention grants will provide funding for organisations to help solve robust, efficient regulations and health and safety problems that affect multiple businesses in an industry or a high-performing building and supply chain. construction sector. Injury prevention subsidies are available to help small to medium MBIE will soon be asking you to get sized businesses access services and other support known to improve involved and will outline more about workplace safety.
what’s changing and where to go to For more information on these grants or subsidies check out the ACC website. learn about the consultation. https://www.acc.co.nz/assets/business/workplace-ip-grants-to-print.pdf
6 carters.co.nz INDUSTRY NEWS New Site Safe Designing certificate for access programme and Site Safe has started offering a new certificate usability “BUILDINGS FOR EVERYONE programme from January this year. – DESIGNING FOR ACCESS The new certificate is a AND USABILITY” HAS BEEN NZQA qualification that focuses on RECENTLY PUBLISHED practical workplace health and safety. ON THE BUILDING PERFORMANCE WEBSITE, The programme is called: WITH THE AIM TO IMPROVE HEALTH AND SAFETY IN UNDERSTANDING OF ALL CONSTRUCTION The biggest boost Previous graduates say completing the certificate BUILDING USERS’ NEEDS gave them the confidence to take the lead on safety. “It really gave me the ability to lead health leading to and safety from the front. Contrary to popular WHEN ACCESSING PUBLIC opinion, safety onsite is not just something for the managers to take by the horns. The whole team – everyone on the site – needs to be involved New Zealand Certificatebecause it’s thein team’s obligation to make sure BUILDINGS. they are all safe at work.” Workplace Health andThe Safety next step is yours The guide is for those who own, For more information on the Health and Safety in Construction programme, or to enrol, contact us on Practice (Level 3) 0800 SITE SAFE, email [email protected] or visit our website. design, build, and manage public Health and Safety in Construction buildings to encourage them to The benefits of achieving our new leading to consider the varying needs of certificate programme: New Zealand Certificate in Workplace Health and Safety Practice (Level 3) members of the public right from Owned and delivered by Site Safe New Zealand, this NZQA approved • become a health and safety leader programme is recognised throughout the industry as a great way to advance your skills, knowledge and career. the start. in your company; Permanent or temporary • develop new skills and gain a disability affects about a quarter NZQA qualification; From January, further information of the population at any one • demonstrate a commitment to about the programme, including how time. Everyone should be able to safety training through theoretical learners can enrol, will be available access and use public buildings. and practical learning; on the website. This guide describes the building • proudly stand for safety in the New user experience for people From 2019, all existing Certificate Zealand construction industry. with different physical, sensory in Construction Site Safety (CCSS) Site Safe are offering the Health and and cognitive capabilities and learners will be automatically Safety in Construction programme shows practical approaches to transferred into the new Health and because the current Certificate in the design, construction and Safety in Construction programme. Construction Site Safety, which Site management of public buildings Any credits previously awarded will Safe delivers in partnership with to meet their needs. be recognised and transferred into Unitec, is ending this year as we align the new programme with equal value. The guide provides information to new Certificate frameworks with about good practice for the For a learner to complete the NZQA. design of buildings that are safe programme in 2019, they will need to Under the Health and Safety in and easy to use for everyone, achieve all 40 credits including two Construction programme, learners some of which may exceed the of three mandatory courses: will complete by achieving 40 credits requirements of the Building • Risk Management – 8 Credits through attending Site Safe courses, Code. completing assignments and • Site-Specific Safety Planning producing workplace evidence. – 7 Credits (previously called Advanced Passport) We believe that learners will benefit • Leadership in Safety – 7 credits from the practical aspect of the programme, where they will get If you have any questions, please to use real life examples of how contact Site Safe at they work safely to help gain their [email protected] or View the “Buildings for everyone: qualification. call 0800 SITE SAFE. Designing for access and usability” guide (https://www.building.govt.nz/ buildingcode- The programme brochure can be downloaded here - https://www.sitesafe.org. compliance/d-access/accessible- nz/globalassets/news-and-events/nz-cert-brochure-web.pdf buildings/).
7 LBP NEWS
Suspensions – it is your choice In past issues of CARTERS Trade Leader, we have highlighted a number THERE ARE SEVERAL TYPES OF LICENSED BUILDING PRACTITIONER (LBP) LICENSING SUSPENSIONS: of sanctions against VOLUNTARY, RELICENSING, OR DISCIPLINARY. licensed building practitioners (LBPs) Voluntary suspensions are end your voluntarily suspension by choice, but relicensing or at any time by completing the which have resulted in disciplinary suspension happens as 'Ending voluntary suspension of the suspension of their a result of your actions as an LBP. licence form'. You need to continue All suspensions appear on your to maintain your skills while on a licences. public register page, the reason voluntary suspension. The information for the suspension is described Voluntary suspensions are shown including for disciplinary or on the public register, but are contained in this article relicensing reasons. Clients described as 'at the request of might steer away from you if you the practitioner', to separate them comes from the Ministry have a disciplinary or relicensing from suspensions placed on your of Business, Innovation suspension history, so maintaining licence by the Registrar or Building your current licence status can be Practitioners Board. and Employment very important to your reputation RELICENSING SUSPENSION (MBIE), which focused and future business. Every year, the Registrar will make on the VOLUNTARY SUSPENSION contact with you about a month You may choose to have your prior to your licence ID card topic of licence licence (or a class of licence) expiring to ensure that you wish to suspensions in a recent suspended for up to two years remain licensed. by completing the 'Voluntary You can renew your licence online, issues of Codewords. suspension of licence form'. You can or contact the LBP licensing team.
8 carters.co.nz LBP NEWS
Your licence will be suspended if you do not respond, if you don't pay your yearly licensing fee, or do not complete your skills maintenance (required every 2 years). It is important to make contact with the LBP team and 1. How long can you voluntarily suspend your licence renew your licence (which can be done online) because (or class of licence) for? if your licence is suspended you will be considered 'non- a. Up to 6 months licensed'. When you are 'non-licensed' you are not able to b. Up to 2 years c. As long as a piece of string carry out Restricted Building Work (RBW) unless you’re 2. When can you uplift your voluntary suspension on supervised by an LBP, and you can't supervise RBW. You your licence (or class of licence)? also can't tell people that you are an LBP. a. When the suspension period you selected has Your suspension is required by law to be shown on the ended b. 2 years after your voluntary suspension started public register for 3 years. You cannot request to have your c. Any time, but you can only voluntarily suspend your suspension history removed. A suspension can impact licence for 2 years on your ability to get jobs as consumers check the public 3. If your licence is suspended because you did not register regularly. complete relicensing, what are you able to do? a. Only carry out RBW under the supervision of an LBP DISCIPLINARY SUSPENSION b. Supervise RBW as long as you're not the person The Building Practitioners Board can suspend an LBP's carrying it out c. Tell people that you're an LBP licence if an LBP commits a disciplinary offence under 4. How long will a suspension stay on your public section 317 of the Building Act 2004. register profile? A disciplinary suspension means you are 'non-licensed' and a. Until you request to have it removed not able to carry out RBW unless you are supervised by an b. 3 years c. 1 year LBP. If your license is suspended by the board you can’t supervise RBW and you can’t tell people you are an LBP. CHECK ANSWERS: https://www.building.govt.nz/ about-building-performance/news-and-updates/ Your suspension will also be shown on the public register codewords/codewords-issue-88/suspensions-it-is-your- for 3 years and may impact on your ability to get work. choice/quiz-answers-suspensions/ Voluntary Suspension and Ending Voluntary Suspension forms can be found on the LBP website: https:// www.lbp.govt.nz/for-lbps/your-licence/suspend-or-cancel-your-licence/
CARTERS branches played host to a huge power tool month in February, with 22 events held around the country and over 700 attendees. Cheers to everyone who joined us, it was a great to for our customers, key suppliers and CARTERS teams to get together and catch up on what’s new in the industry. Congratulations to the lucky winners of our grand prize draw, each customer won a trip for 2 to the F1 Grand Prix in Melbourne. Check out some of our customers collecting their prize at their local CARTERS branches.
BOUNDLESS CREATIONS LTD Petone WILSON CONTRACTORS (2003) Queenstown TIMOTHY G WAYTE Dunedin FRANKS BUILDING LIMITED Panmure CANTERBURY BUILDERS LTD Hornby, Christchurch
MAKE SURE YOU GET ALONG TO THE NEXT TRADE EVENT AT CARTERS, YOU NEVER KNOW WHERE IT MIGHT TAKE YOU! EDUCATION
Construction sector rejects vocational training proposals Wide ranging proposals to reform New Zealand’s Vocational Education Training system (VET) have been roundly rejected by the building and construction sector following a sector summit in Auckland recently.
10 carters.co.nz EDUCATION
THE PROPOSED PLANS WERE RELEASED RECENTLY BY MINISTER OF EDUCATION, CHRIS HIPKINS AND WERE INITIALLY ACKNOWLEDGED, BUT MET WITH SOME CAUTION, BY THE HEAD OF NEW ZEALAND’S LARGEST PROVIDER OF CONSTRUCTION TRADE APPRENTICESHIPS, BCITO CHIEF EXECUTIVE, WARWICK QUINN. HOWEVER, FOLLOWING THE SUMMIT, WHERE THE PROPOSAL WAS DISCUSSED IN DETAIL AND ITS IMPACT ON THE CURRENT AND FUTURE TRAINING SYSTEM CAME UNDER SCRUTINY, THE FEEDBACK SHOWED STRONG DISAGREEMENT WITH THE PROPOSAL. The proposal seeks to change in any future system,” Quinn says. the role of Industry Training “Attendees made it clear that they Organisations (ITOs) and move the value sector control of both the management of apprentices to a standard setting and the arranging new single centralised institution of training. While they liked all of (the New Zealand Institute of Skills the proposals in the reform package “The strong labour & Technology – NZIST), which relating to the Industry Skills Bodies market is encouraging would be formed by merging (and indeed the Government could young people to all existing polytechnics in New have been bolder here) , they are move directly into the Zealand. concerned that control over the ITOs would be replaced with arranging of training is at risk. workforce rather than Industry Skill Bodies, who “Employers value the relationships continue in formal would continue some existing they have with their ITOs. Under education, when it ITO functions, like developing the current system, our field staff needs to be smarter qualifications, and have a stronger build strong relationships with every say over what was taught by NZIST. individual employer and apprentice. and accommodate both. Two-thirds of the attendees – which This allows us to customise our And our system isn’t included a broad mix of industry approach to each firm and learner. geared up for the future leaders and employers who work In construction, most people learn economy, where re- with the ITOs and polytechs – did from mentoring and support and not support the Government’s plans. not from pure bookwork. This focus training and up-skilling Concerns centered around the needs to be retained in any reforms, will be a regular feature negative impact such widespread and the sector is sceptical how this of everyone’s working changes would have on the sector, will work in the new system. The especially at a time when more industry has invested over 25 years life. capacity and capability is required. to get it to its current state and if it “Instead of our “The purpose of the summit was is compromised the system is at risk institutes of technology to agree the non-negotiables any of failing. In fact it is so important new system must provide to ensure that the industry is prepared to give retrenching, cutting employers and apprentices stay away the really positive aspects of programmes, and engaged. What we have gained the reforms to retain the BCITO’s closing campuses, we today is an agreed list of what role in arranging training…such are need them to expand industry expect to be incorporated the stakes. “There was concern from many in their course delivery in the room that the smaller trades more locations around Construction sector rejects will fall through the cracks of a the country. single, large institution. They are also concerned that advocacy work “It’s time to reset the vocational training proposals carried out by ITOs will be lost. As whole system and a result, we will struggle to attract fundamentally rethink people into the sector. the way we view Mr Hipkins says the reason behind the changes are for school leavers vocational education to get higher quality training and training, and how opportunities, employers to get it’s delivered.” the skills they need and so New WARWICK QUINN Zealanders are better equipped for CHRIS HIPKINS BCITO CHIEF EXECUTIVE the changing nature of work. MINISTER OF EDUCATION
11 EDUCATION
“If we get this wrong, we risk losing a cohort of employers, and by default apprentices, which would set the sector back years. We cannot let this happen at a time when the sector faces significant skills shortages. “The overarching question we will be asking Ministers is how they can mitigate the risks identified by industry today in any sector reform,” Quinn says. “This is too important to get wrong.” WARWICK QUINN BCITO CHIEF EXECUTIVE
“The world around us is changing undergone a period of public programmes would be consolidated, rapidly and our education system consultation, which ended on improving consistency and freeing needs to keep up,” Mr Hipkins said. March 27th. up resources to expand front-line delivery. There will be more sharing “At a time when we’re facing critical THE PROPOSALS ARE: skill shortages, too many of our of expertise and best-practice, and • Redefined roles for education polytechnics and institutes of more use of online, distance, and providers and industry bodies technology are going broke. blended learning. (Industry Training Organisations “Our proposals aim to ensure that “One positive in the Government’s (ITOs) to extend the leadership the system is easier to navigate and proposal is the extended reach and role of industry and employers; control over what providers can provides the skills that employers and • Bringing together the 16 existing deliver. This is one aspect we would employees need. Institutes of Technology and support,” says Quinn. “What we are proposing is Polytechnics (ITPs) as one entity ambitious, but it needs to be. We The industry also strongly voiced its with the working title of the cannot continue to tweak the concerns about how the transition to New Zealand Institute of Skills system knowing that the model a new system would be managed. & Technology with a robust is fundamentally broken, and isn’t “We understand what the new regional network of provision; delivering our workforce the skills proposals are trying to do, but we and that they need to thrive. are concerned that they may not get • A unified vocational education Mr Hipkins said that the proposals there. It is a lot of disruption on a funding system. promise that lacks detail." released may go ahead in this or “We would also ensure there’s another form, but the Government He says you don’t have to remove the strong regional influence in the won’t make any decisions until we arranging of training from the ITOs to New Zealand Institute of Skills & have heard and carefully considered improve the VET system. Significant Technology through the proposed feedback from this consultation advancements can be made by formation of Regional Leadership process. introducing the functions of the skills Groups which would identify the BCITO has said it will continue bodies into the ITOs and by ensuring needs of the local economy and to consult the sector to ensure a the funding regime drives the right become a key link between local robust response to the Government behaviours. government, employers, iwi and proposals. The changes, which aren’t due to communities,” Mr Hipkins says, come into effect until 2020, have “The development of courses and
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GIB0006 Weatherline Ad A4 0403.indd 1 4/03/19 2:01 PM ARE YOU AN APPRENTICE LOOKING FOR A NEW CHALLENGE? The hunt is on for the next Registered Master Builders CARTERS Apprentice of the Year, could that be you? Entries are open NOW - closing 20 May 2019!
Registered Master Builders Apprentice of the Year is an annual event that recognises the talent of up and coming carpentry professionals. Apprentices get tested across a range of disciplines, including a regional practical challenge, allowing then to showcase their skills on the tools!
APPRENTICES EMPLOYERS Show us your skills? If you’re Got a star apprentice? Get them tackling your apprenticeship this competition involved in this competition to boost their is a chance to expand your experience and career and your business to the next level. compete against the best in the country. There’s an award up for grabs for you too!
CARTERS are proud to sponsor this event for the 15th consecutive year and value the opportunity to support our future industry leaders.
If you’re interested and want to know more, head along to one of the RMB ‘Head’s Up’ meetings. Previous AOY winners and judges will be there offering advice on what you can expect from the competition. Find an event near you at www.apprenticeoftheyear.co.nz/headsupmeetings
If you’re ready to apply head to WWW.APPRENTICEOFTHEYEAR.CO.NZ
CONZTRUCT MINI
CONZTRUCT MINI 2019 CONZTRUCT Mini is kicking off it’s first show of the series this month in Westport at the Pulse Energy Recreation Centre. In the Westport Tuesday 9 April same expo style as the CONZTRUCT trade shows, these events Gisborne Tuesday 11 June provide a forum for suppliers to reach builders located regionally, Taupo Tuesday 2 July offering networking and learning opportunities to construction Rotorua Wednesday 3 July industry professionals (full event dates on the left). Blenheim Wednesday 7 August Nelson Thursday 8 August Head down to an event near you - between 4:00pm – Kaitaia Tuesday 10 September 6:30pm - and be sure to stop by the CARTERS stand to Kerikeri Wednesday 11 September have a chat with your local team. For more information or to register, please go to www.conztruct.co.nz/registration.
NZCB CONFERENCE 14th – 15th June 2019
The Annual New Zealand Certified Builders Conference is set to be held at the newly refurbished Christchurch Town Hall in June. This is a great event bringing big industry players together to provide the industry with necessary tools and education. CARTERS will be onsite at the Trade Expo, see you there! ARE YOU AN APPRENTICE APRIL 2019 LOOKING FOR A NEW CHALLENGE? TRADE The hunt is on for the next Registered Master Builders CARTERS Apprentice of the Year, could that be you? Entries are open NOW - closing 20 May 2019! OFFERS.
Registered Master Builders Apprentice of the Year is an annual event that recognises the talent of up and coming carpentry professionals. FREE Apprentices get tested across a range of disciplines, including a regional STUFF! practical challenge, allowing then to showcase their skills on the tools!
APPRENTICES EMPLOYERS Show us your skills? If you’re Got a star apprentice? Get them tackling your apprenticeship this competition involved in this competition to boost their is a chance to expand your experience and career and your business to the next level. SWANNDRI RANGER compete against the best in the country. There’s an award up for grabs for you too! XTREME WOOL SHIRT
CARTERS are proud to sponsor this event for the 15th consecutive year and value the opportunity to support our future industry leaders.
If you’re interested and want to know more, head along to one of the RMB ‘Head’s Up’ meetings. Previous AOY winners and judges will be there offering advice on what you can expect from the competition. Find an event near you at www.apprenticeoftheyear.co.nz/headsupmeetings
If you’re ready to apply head to WWW.APPRENTICEOFTHEYEAR.CO.NZ
CONZTRUCT MINI
CONZTRUCT MINI 2019 CONZTRUCT Mini is kicking off it’s first show of the series this month in Westport at the Pulse Energy Recreation Centre. In the Westport Tuesday 9 April same expo style as the CONZTRUCT trade shows, these events Gisborne Tuesday 11 June provide a forum for suppliers to reach builders located regionally, Taupo Tuesday 2 July offering networking and learning opportunities to construction Rotorua Wednesday 3 July industry professionals (full event dates on the left). Blenheim Wednesday 7 August Nelson Thursday 8 August Head down to an event near you - between 4:00pm – Kaitaia Tuesday 10 September 6:30pm - and be sure to stop by the CARTERS stand to when you spend $3500 Kerikeri Wednesday 11 September have a chat with your local team. For more information or to register, please go to www.conztruct.co.nz/registration. (excl GST) or more on any GIB® Performance NZCB CONFERENCE Plasterboard this month!* 14th – 15th June 2019 *Via redemption. Offer excludes GIB® Plasterboard accessories, GIB® Rondo® and 10mm GIB® Standard. See overleaf for terms. Offer applies to cumulative spend on GIB® Performance Plasterboard during April 2019. The Annual New Zealand Certified Builders Conference is set to be held at the newly refurbished Christchurch Town Hall in June. This is a great event bringing big industry players together to provide the industry with necessary tools and education. CARTERS will be onsite at the Trade Expo, see you there! FREE STUFF exclusive to CARTERS TRADE ACCOUNT HOLDERS. TRADE OFFERS. FREE SPECIAL LIMITED HOT STUFF! ORDER NEW STOCK OFFER!
Thermakraft Supercourse 500 Thermakraft Aluband SPECIAL (DPC) 90mm x 30m Xtreme Window ORDER Flashing Tape RPTKCS5009030 RPTKALBCP075025 75mm x 25m • A Damp Proof Course • High strength (DPC) and concealed $ • Easy to use, clean and install 52 PER flashing is a hi-impact • Seals joins and bonds to EXCL GST ROLL polyethylene film, virtually all building surfaces embossed on both sides RPTKALBCP150025 and wall underlays including 150mm x 25m • Fully inert and unaffected rigid wall underlay systems, $ by LOSP Timber treated plywood and fibre treatments 119 PER cement systems EXCL GST ROLL • Supercourse 500 is ideal • Can be exposed to the when used as a concealed RPTKALBCP200025 elements for up to 90 days 200mm x 25m flashing behind brick • BRANZ appraised veneer cladding $ 90 $ • BRANZ appraised (no 329) 5 PER ROLL 130 PER EXCL GST EXCL GST ROLL
ProChoice® Black ProChoice ® Respiratory Kit • Excellent abrasion resistance SFSN843053 Panther Gloves • Nylon liner makes this glove lightweight and breathable • Latex coating for extra grip • Contoured nose piece for • Anti-static liner good fit with glasses or • Made to EN388 Mechanical Risk goggles Standards of 3121 • Replacement filters, • Certified to AS/NZS 2161.3 cartridges and retainer BMP No. 668611 caps all available • Low resistance exhalation valve to reduce heat and moisture build up • Cartridges protect against mechanically and thermally generated particles, SFSN813231 S SFSN813232 M organic vapours and gases SFSN813233 L $ 99 $ SFSN813234 XL 3 PER PAIR 39 SFSN813235 2XL EXCL GST EXCL GST PER PACK
Coast Dual Colour SPECIAL HiKOKI 36V SPECIAL ORDER ORDER Head Lamp EFCOFL14 MultiVolt 255mm • Modes: low / high / red / red flash Slide Compound • 22 metre beam range Mitre Saw Kit • Uses 2 x AAA alkaline batteries (included) PTHKC3610DRAHAZ
• Compact slide system eliminates the need for rear clearance • Front bevel lock • Laser marker for precision cutting • Dual bevel: left 48° / right 48° • LED worklight • 2 x 1440W high powered multivolt batteries and rapid smart charger $ • Optional AC adaptor available to operate as a $ 17 EA 1399 EXCL GST 230V corded tool (coming soon) EXCL GST EA
*Pricing and FREE STUFF rewards valid from 1st April 2019 to 30th April 2019 unless otherwise FREE STUFF rewards are not available in conjunction with any other discount or offer. FREE STUFF stated. FREE STUFF rewards exclusive to CARTERS trade account holders. The actual product or rewards are provided at point of sale or via redemption (as indicated). Limited stock of rewards reward may differ slightly from that pictured. Trade discounts do not apply to advertised pricing. All available, while stocks last. A maximum of one reward per qualifying customer per promotion unless 2 prices exclude GST. Products featured may not be available in all CARTERS branches. Lead time otherwise stated. CARTERS Standard Terms and Conditions of Sale apply. See CARTERS.co.nz for full will apply to SPECIAL ORDER product. Any trademarks are the property of the respective owners. terms and conditions. TRADE OFFERS. FREE SPECIAL LIMITED HOT STUFF! ORDER NEW STOCK OFFER!
Thermakraft Supercourse 500 Thermakraft Aluband SPECIAL (DPC) 90mm x 30m Xtreme Window ORDER Flashing Tape RPTKCS5009030 RPTKALBCP075025 75mm x 25m • A Damp Proof Course • High strength (DPC) and concealed $ • Easy to use, clean and install 52 PER flashing is a hi-impact • Seals joins and bonds to EXCL GST ROLL polyethylene film, virtually all building surfaces embossed on both sides RPTKALBCP150025 and wall underlays including 150mm x 25m • Fully inert and unaffected rigid wall underlay systems, by LOSP Timber $ POWER treated plywood and fibre treatments 119 PER cement systems EXCL GST ROLL • Supercourse 500 is ideal • Can be exposed to the when used as a concealed RPTKALBCP200025 elements for up to 90 days 200mm x 25m flashing behind brick • BRANZ appraised veneer cladding $ $ OF CORDED. 90 • BRANZ appraised (no 329) 5 PER ROLL 130 PER EXCL GST EXCL GST ROLL FREEDOM OF CORDLESS. ProChoice® Black ProChoice ® Respiratory Kit • Excellent abrasion resistance SFSN843053 Panther Gloves • Nylon liner makes this glove lightweight and breathable • Latex coating for extra grip • Contoured nose piece for • Anti-static liner good fit with glasses or • Made to EN388 Mechanical Risk goggles Standards of 3121 • Replacement filters, • Certified to AS/NZS 2161.3 cartridges and retainer BMP No. 668611 caps all available • Low resistance exhalation valve to reduce heat and moisture build up • Cartridges protect against mechanically and thermally generated particles, SFSN813231 S SFSN813232 M organic vapours and gases SFSN813233 L $ 99 $ SFSN813234 XL 3 PER PAIR 39 SFSN813235 2XL EXCL GST EXCL GST PER PACK
Coast Dual Colour SPECIAL HiKOKI 36V SPECIAL ORDER ORDER Head Lamp EFCOFL14 MultiVolt 255mm • Modes: low / high / red / red flash Slide Compound • 22 metre beam range Mitre Saw Kit • Uses 2 x AAA alkaline batteries (included) PTHKC3610DRAHAZ • Compact slide system When your workplace is deep in the mountains eliminates the need for of Sweden, it’s no place for your tools to let rear clearance • Front bevel lock you down. That’s why Isak uses the DEWALT XR • Laser marker for precision cutting range. Durable, powerful and flexible. Making • Dual bevel: left 48° / right 48° them indispensable to your workplace. Wherever • LED worklight • 2 x 1440W high powered multivolt batteries in the world your workplace happens to be. and rapid smart charger $ • Optional AC adaptor available to operate as a $ 17 EA 1399 Now available at: EXCL GST 230V corded tool (coming soon) EXCL GST EA DCS575 184MM DCS388 CIRCULAR SAW RECIPROCATING SAW *Pricing and FREE STUFF rewards valid from 1st April 2019 to 30th April 2019 unless otherwise FREE STUFF rewards are not available in conjunction with any other discount or offer. FREE STUFF stated. FREE STUFF rewards exclusive to CARTERS trade account holders. The actual product or rewards are provided at point of sale or via redemption (as indicated). Limited stock of rewards reward may differ slightly from that pictured. Trade discounts do not apply to advertised pricing. All available, while stocks last. A maximum of one reward per qualifying customer per promotion unless 2 prices exclude GST. Products featured may not be available in all CARTERS branches. Lead time otherwise stated. CARTERS Standard Terms and Conditions of Sale apply. See CARTERS.co.nz for full will apply to SPECIAL ORDER product. Any trademarks are the property of the respective owners. terms and conditions. BUSINESS
The 7 biggest cashflow mistakes tradies make
n BY DANIEL FITZPATRICK
IT’S A FAMILIAR STORY AND IT GOES The thing is, every tradie business goes through cashflow problems at LIKE THIS: some point. It’s part of being in business. A few people haven’t paid you But, if the situation continues to come up, then it’s a sure sign that or you’ve had a couple of slow cashflow management is a weakness in your business that needs months. fixing. Bank account is looking empty Having coached a lot of trade businesses with cashflow problems, I see and you still need to pay staff and many of them making the same mistakes. These top seven mistakes are the ones which cause the most damage and stress (not necessarily suppliers. in this order). Things are getting stressful. The heat is starting to rise and the MISTAKE 1: Letting clients pay money to pay bills and the you when they want, instead of bank while waiting for overdue business is feeling a little out of when they should. amounts to come in. control. Giving too much credit for too How much have you lost in It’s bothering you to the point long can be dangerous and is money and time through late you’re waking up in the middle of one of the biggest downfalls for payers and bad debts? the night with your mind racing. trades. The fix is to set expectations right Worried if there will be enough Many have gone broke because up front with client, have strict money to pay everyone this week. their biggest client didn’t pay credit terms, take deposits at Then you have trouble getting back them. Or, at the very least, they the beginning of jobs, progress to sleep again - now you’re tired - have been sweating it out with payments on big jobs, and be strangled cashflow at the end of prepared to stop work if the it’s going to be a long day. the month, looking for enough account is not paid on time.
18 carters.co.nz BUSINESS
Only when you are paid can you say the money is yours. BE PROACTIVE ABOUT YOUR CASHFLOW. MISTAKE 2: Not billing everything out on time, or at all. Often, especially on complex jobs, bills are sent out months later. Or some details are forgotten, so not everything is billed. Or, even worse, the job is not billed out at all. Make sure you have a good system for your team to record all details - including extras (materials and labour) - on the job, then make sure you invoice everything on completion. Pay special attention to cashflow when your tradie business is growing. If you're not getting paid everything MISTAKE 5: Surprise tax bills you Have enough in the bank to cover you’re due, you are going to feel the didn’t see coming your overheads for a few months if squeeze…and it’s not going to be Unexpected tax bills (due now) will things get tight. But the bigger buffer pleasant. kill cashflow dead, believe me! you can accumulate, the better. Make sure you keep in touch with MISTAKE 3: Not allowing enough your accountant and know what is MISTAKE 7: No planning margin in your jobs. due and when, then put the money Many tradies wing cashflow and it It doesn’t matter how big your jobs aside in a separate account early so gets them into trouble. or sales are. If you’re not making it's there when you need it. Completing a budget and cashflow enough money to cover all your Remember it's not your money. So, to know what money you need to costs, overheads and profit on top, if you spend it, you’ll have problems pay who and when is essential to you won’t ever have the cashflow you with the IRD. You have to pay it all running a good business. It’s an easy need. back and that’s stressful. template which I give all my clients. It This is all about quoting the job with If you are caught short? Don’t bury takes just 15 minutes. good margins at the start - and then your head in the sand. Phone the Think of it like this. If you are in the controlling it so there is healthy profit IRD and make an arrangement. If middle of the road and a bus is about at the end of each job. you don’t, the penalties and interest to hit you and you only have one charges are brutal. Yes, I have seen second to react, this means you have some businesses who left it too long. MISTAKE 4: Not understanding big problems. But what if you have The extra costs were almost as much what is yours a whole 10 seconds? You have way as the original amount! I call this your cash position, which more options - you can wave it down, is simply what you would have left if move to the side, or simply get the all your receivables were collected MISTAKE 6: No cash buffer heck out of the way. and all suppliers, wages, credit cards, Construction is cyclical. In other Same with cashflow in your business. bank, and taxes were paid. words, it has highs and lows. In the If you have time and you can see Is there some money left? Or will you good times, it’s important to put cash what’s going to happen, you have have to chip in the difference from away for when times are not so good. a greater level of control of the your back pocket? If you have been around a while, situation. Unless you have a positive cash you’ll have already been through this Poor cashflow is actually the main position (money after everyone is cycle a number of times. It’s all part reason businesses fail. of the fun. paid), you won’t have good cashflow. SO BE PROACTIVE. It’s basic math.
Also, you want to be improving Daniel Fitzpatrick is a business coach and creator of Next Level this figure over time, so check this Tradie, based in North Canterbury. Find out more about him at https://nextleveltradie.co.nz/ calculation at the end of every month If you need a hand with your business and cashflow, book a time to make sure you’re on the right side with him and have a chat about how he can help. of things. http://nextleveltradie.youcanbook.me/
19 LEGAL What is a Notifiable Injury or Incident?
n BY ANDREW SKINNER
IT SHOULD BY NOW BE WIDELY UNDERSTOOD THAT THERE IS Andrew Skinner is formerly General Counsel A REQUIREMENT FOR BUSINESSES TO NOTIFY WORKSAFE IF A at CARTERS and is now “NOTIFIABLE EVENT” HAPPENS AT THE WORKPLACE. A NOTIFIABLE Senior Associate at Stewart Germann EVENT IS DEFINED IN THE HEALTH AND SAFETY AT WORK ACT 2015 Law Office - (ACT) AS MEANING EITHER A NOTIFIABLE INJURY OR ILLNESS OR A [email protected] NOTIFIABLE INCIDENT WHICH IN TURN ARE BOTH DEFINED IN THE ACT. WHILST THE ACT HAS DETAILED DEFINITIONS, THE WORKSAFE an event occurs the scene of the WEBSITE (WWW.WORKSAFE.GOVT.NZ/NOTIFY-WORKSAFE) incident must be preserved (i.e. CONTAINS SOME HELPFUL INFORMATION REGARDING THE TYPES OF remain untouched) in case Worksafe INJURIES AND INCIDENTS THAT NEED TO BE REPORTED. wishes to inspect it. Once notified, you will need to wait for a Worksafe WHAT IS A NOTIFIABLE INJURY listed on the website include fire, investigator to contact you and OR ILLNESS? fall from height of plant, or electric decide whether they wish to attend shock. The list is prescriptive and Generally, these are work-related the scene or not. A Worksafe it is important to understand that a injuries and illnesses which are inspector may ask you to take photos person needs to be sufficiently close serious and need to be notified. of the scene in order for them to to the event in order to be exposed to The website contains a useful table review the area and decide whether the risk (which is why these events identifying the specific injuries or to attend. There are some limited are often referred to as “serious near illnesses that require reporting and exceptions to the requirement to misses”). examples of each of them to assist preserve the scene, including to help with deciding whether the injury is If a notifiable incident causes a minor the injured person or to make the serious. For example, a serious eye injury but had the potential to cause area safe for other persons. serious injury, illness or death, then it injury includes: If a business fails to notify Worksafe would need to be notified. • injury that results in, or is likely to of a notifiable event, or fails to result in, the loss of an eye or vision NOTIFYING WORKSAFE preserve the scene following an (total or partial) If you have concluded that Worksafe event, these are serious matters and • injury caused by an object entering must be notified then you can either could result in a fine of up to $50,000 the eye (for example, metal call Worksafe or submit an electronic depending on the circumstances. fragment, wood chip) notification on the website. There If you are in any doubt • contact with any substance that is a requirement to notify Worksafe regarding whether could cause serious eye damage. as soon as possible after becoming an event is However, a serious eye injury does aware of a notifiable event. If a notifiable then not include exposure to a substance number of businesses are involved you should or object that only causes discomfort then only one notification needs seek to the eye. to be made. A notification is legal The website examples provide useful often required to be advice. guidance for determining whether an made soon after injury or illness is notifiable. Please an event has note that it is mandatory to report an happened injury or illness if it results in a person when the needing to be admitted to hospital for full details immediate treatment. of the event may WHAT IS A NOTIFIABLE not be fully INCIDENT? understood. You should A notifiable incident is an unplanned provide factual details only or uncontrolled incident that exposes when notifying an event and a person to a serious risk arising from avoid speculating the cause until a immediate or imminent exposure to full investigation is carried out. a specific list of events as specified It is important to remember when in the Act. These events which are
20 carters.co.nz LEGAL
Keeping a clean building site
n BY ANDREW SKINNER Building sites pose a risk to the environment DURING THE SITE WORKS The guide covers how to protect as everything that enters a drain from a waterways during building works by: building site goes straight into waterways. • preventing exposed soil and clay from being washed into According to Auckland Council, the to issue on the spot fines for non- waterways; two main risks from the building site compliance. • protecting drains by installing are: Most of the Councils have issued protection around where the • Exposed soil and clay being guidance for compliance in this water enters the drain; and washed into the waterways by area. Auckland Council have issued • how to work with toxic materials rain resulting in sediment build- “Building on small sites – Doing such as concrete, cement and up; and it right” which provides practical paint to avoid these highly guidance before, during and after a • toxic materials like cement toxic materials entering the project is finished. and paint being washed into environment. waterways. BEFORE THE PROJECT STARTS AFTER THE PROJECT IS Builders can be subject to fines Before starting a project it is very FINISHED of $750.00 if they do not manage important to read carefully the the main risks and, in extreme resource consent and building When the project is complete you cases, $750.00 per day if the events consent conditions. The building need to arrange final inspections for continue. If there is a deliberate consent will likely contain an your resource consent and building and ongoing intent to disregard the Erosion and Sediment Control consent and then remove all of the Resource Management Act and the Plan which was prepared as part sediment control measures. Council, builders can be prosecuted of the consenting process. A copy Whilst Auckland and Canterbury are with much larger fines. of these consents and plans needs leading the way in terms of tackling Recently Auckland Council’s to be retained on site throughout non-compliant construction sites, we Regulatory Compliance Team the build so that all contractors and can expect to see a continued focus undertook a large scale inspection subcontractors are made aware on environmental issues at building of a development site in South of the specific requirements. Most sites across the country. East Auckland and found that 13 building contracts will oblige the This article is intended to provide construction sites in a single street contractor/subcontractor to comply general guidance and does not were in breach of the rules and with consent conditions and so it is constitute legal advice, which consent conditions. The Council important that these conditions are may vary depending on your issued abatement notices requiring readily available to them. Failing to circumstances. the breaches to be rectified follow the consent conditions will immediately. This action by Auckland result in a breach of consent and a Andrew Skinner is formerly General Counsel at CARTERS and is now Senior Council follows the decision made by breach of contract for the offending Associate at Stewart Germann Law Environment Canterbury in late 2018 party. Office - [email protected]
21
HEALTH & SAFETY
TOOLS WENT FLYING WHEN THESE TWO VANS COLLIDED ON THE OUTSKIRTS OF HAMILTON IN FEBRUARY THOUGH THERE WAS NO SERIOUS INJURY. PHOTO: NZ POLICE
When tools become unguided missiles
Cargo barriers are a good way of preventing an saw a large oxy-acetylene cylinder fly out from the back of the van, already bad situation from getting much worse. shooting between them and burying Sometimes the biggest threat to Zealand Herald that it wasn’t the itself in the dashboard. people in a head-on crash is all the wood that broke his windscreen, but Another first responder from Otago things that are behind them. accepted that several tools had gone recalls a call-out to where a vehicle A collision between two vans in rogue. He said four tools - a clamp, had rolled. She says it wasn’t the Hamilton in early February saw a glue gun, hack saw and multi box actual rolling that killed a person in Waikato police warning tradies – flew out the window but they were the car, it was a combination of a that unsecured tools and cargo the only things that were unsecured loose tool box, a chainsaw, and other can become painful, if not deadly, in the van. heavy items. missiles in an accident. Construction safety training There are several ways to minimise In a Facebook posting about the organisation Site Safe says putting a the risk from such things happening. crash (pictured) the police said barrier between people and objects Keeping them secure is one, keeping timber and tools came flying out of makes good sense, particularly for tools and materials separated the van as it collided with another tradies and construction workers. from people via a cargo barrier is vehicle that had crossed the The gravitational force (g-force) on another – ideally those that meet the centre line. people and objects during collisions NZS4034 standard for cargo barriers. at about the 50kmh mark is usually Properly fitted barriers, as well “UPON IMPACT, THE CONTENTS around 20-25 times normal. So, for as protecting people from fast- OF THE TOYOTA HIACE a brief instant, even a 1kg water moving objects, may also offer extra (INCLUDING TOOLS) HAVE bottle will have the force of 20-25 protection if the vehicle rolls. COME FLYING FORWARDS, kgs as it flies forward until it hits the TOWARDS THE DRIVER AND HIS Site Safe also recommends that dashboard, the windscreen, or the PASSENGER. liquids are securely stowed in correct back of someone’s head. bottle containers and where possible, “IF YOU ARE A TRADIE OR OWN Otaki St. John ambulance officer fuel should be in a separate trailer. A COMPANY, THIS MAY BE AN Trevor Hunter has dealt with OPPORTUNITY TO CONSIDER several vehicle accidents involving ANY IMPROVEMENTS THAT unsecured items including, tragically, YOU CAN MAKE (IN CASE OF AN two fatal ones. Another one, he says, EMERGENCY).” was much luckier for the occupants. For more information go to: The van driver later told the New They were in a head-on crash which www.sitesafe.org.nz
23 QUANTITY SURVEYING
IN LAST NOVEMBER’S ISSUE OF Quantity Surveying CARTERS TRADE LEADER, WE RAN AN ARTICLE and Design – how ON QUANTITY SURVEYING AND HOW TO APPLY IT they work together TO RESIDENTIAL BUILDING INCLUDING VALUE ENGINEERING OPTIONS DURING A PROJECT’S PROJECTS. DESIGN CAN HELP MANAGE COSTS AND AVOID A BUDGET IN THIS ISSUE, WE BLOWOUT. FOLLOW UP WITH TWO RELATED Traditionally many see design and • design adjustments that mean standard ARTICLES; ONE quantity surveying as being standalone materials can be used rather than ABOUT THE practices. However, the benefits of specially created materials or materials RELATIONSHIP combining these practices become that create excessive waste obvious when analysing their individual BETWEEN • ensuring a ceiling height is the same as QUANTITY strengths. a standard sheet size for plasterboard SURVEYING AND A quantity surveyor (QS) can provide DESIGN, AND A valuable input at the start of a project • designing the project so work is SECOND RELATING by providing advice about ‘value completed in stages, to allow costs to TO QUANTITY engineering’ and cost management. be set out accurately and keep track of SURVEYING AND specific measurements at each stage. VALUE ENGINEERING HOW IT RELATES DESIGN BENEFITS TO BEING AN LBP Value engineering involves a QS providing different options to realise cost Often, and despite best efforts, an initial saving benefits for a project. budget provided by a client is blown as Examples of value engineering in a excitement about the project grows. To design process include: help manage costs it’s best to bring in a • advising on using different cladding quantity surveyor during several stages of types as a cost saving option the design process:
24 carters.co.nz QUANTITY SURVEYING
• For the initial conversation the budget. If further value with the designer and the engineering is required, this is client, to discuss budgets a good time for a discussion and goals, set expectations between the designer and and identify the limits of client. the design within the cost • After the concept drawings 1. What does Value Engineering provide? parameters. have been signed off and a) advice regarding the structural elements of a project At this point, it’s important the working drawings b) advice regarding the cost elements of a to talk to the client about completed, a quantity project their budget and what they surveyor can provide a c) advice regarding the architectural elements want to achieve. It can be schedule of quantities. of a project easier to identify early on if A schedule of quantities 2. A schedule of quantities is a measured the goals and the budget are is used during the tender document provided to builders to tender likely to work. This is also an process and is a list and from, and is useful for: a) Fair tendering opportunity to discuss ideas measurement for all carpentry about value engineering for b) Making sure materials are measured and concrete items needed correctly the designer and the client to for a project. Using a schedule c) Helping to make the tendering process less think about. of quantities means that time intensive for the builders • Once the concept plans all builders use the same d) All of the above have been completed, measurements; overall this 3. Designers and quantity surveyors should a quantity surveyor can makes tenders fairer and a) Never work together provide an indicative easier to compare. It often also b) Only work together at working drawings budget. encourages builders to tender stage c) Ideally work together at the start of a project This can be useful prior to a price as the exercise is far less labour intensive without Check answers here: https://www.building. the working drawings being govt.nz/about-building-performance/ completed as it can save the need to measure as well news-and-updates/codewords/codewords- as price. issue-87/quantity-surveying-and-design- rework if the plans exceed work-together/quiz-answers-quantity- surveying-and-design-work-together/ Learning opportunities and tools for LBPs
As an LBP, keeping up to date with the latest information is paramount to running a successful business. WE ARE LUCKY IN NEW ZEALAND AS THERE ARE LOTS OF OPPORTUNITIES AND TOOLS TO LEARN AND GROW YOUR BUSINESS, AS LONG AS YOU KNOW WHERE TO LOOK! THIS ARTICLE IS THE THIRD AND FINAL ARTICLE TYING QUANTITY SURVEYING TO BEING AN LBP. Often we hear that LBPs are unsure where to start learning about business practices. Here's some advice for Small to Medium sized Enterprise (SME) builders to pick up some tools and tricks from a Quantity Surveying perspective. Business practices are relevant to your Skills Maintenance. Contractors have a range of regulatory obligations alongside LBP obligations, so knowledge in this area is relevant to being able to contract with consumers and participate in our building industry.
25 QUANTITY SURVEYING
TRADE EVENTS Get along to as many trade events to a range of speakers is your local as you can. Hearing from a range Chamber of Commerce. They will of informative speakers, and the generally cover more than just trade general camaraderie these events information and also give out free encourage, is something you information for those interested can’t put a dollar value on. Trade in human resources, business Events are often held by different acumen, accounting, and all those institutions as well as by merchants other things SME builders need to or other trade suppliers. understand to run their businesses Another great place to meet and profitably and efficiently. 1. Learning about contracting with share your knowledge and listen consumers and complying with your obligations can be relevant for: NZTE – REGIONAL PARTNERSHIP NETWORKS a. LBP Skills Maintenance New Zealand Trade and Enterprise offer learning opportunities and funding b. Running a competitive and to SME's across New Zealand, and in many cases this includes our local resilient business trades. They can offer business mentoring, financial acumen, Human c. Winning contracts and staying Resources support and training and marketing. Support is offered by way profitable of courses around the country and one-on-one consulting and training with d. All of the above regional partners. 2. True or false: If you’re operating You can apply for funding for this assistance if you go to the website and a small business, you won’t become part of the network, it is definitely worth checking out. Suppliers to need to know anything about the NZTE have to be thoroughly vetted to ensure they are going to give value recruiting staff, human resources and help businesses so it is a great place to find real value, and help with or accounting – just turn up and funding. do the work! a. False ESTIMATING TOOLS b. True There are lots of online tools, some use, alongside online services, to free and others by subscription, obtain information about labour 3. Where is one good place to get providing data-based industry constants. You’ll often find one started on learning business averages across the regions for within reach of a quantity surveyors skills and getting support to grow labour constants, built up rates, desk. your company? a. A quantity surveyor and cost planning information. Using resources to make the b. NZTE Regional Partnership Quantity surveyors use this global process quicker and easier is an Networks information for estimating purposes, added bonus. The information in c. You’ll just have to learn it yourself but for builders who are looking for these resources has been gathered estimating guidance, it is a fantastic through years of data analysis, wealth of information. and is a good basis to use when You can also find paperback books completing your own pricing work. Check answers here: https://www. about quantity surveying. These are A very handy tool to have in the building.govt.nz/about-building- a common tool quantity surveyors office! performance/news-and-updates/ codewords/codewords-issue-88/learning- opportunities-and-tools-for-lbps/quiz- More information on the NZTE Regional Partnership Networks https:// answers-learning-opportunities-and-tools- www.nzte.govt.nz/common/regional-business-partner-network for-lbps/
26 carters.co.nz BATHROOMS FOR LIVING Clearlite brings you our latest range of quality showers, baths, vanities and bathroom accessories. Timeless bathroomware made for New Zealand homes.
To view our latest collection please visit www.clearlite.co.nz 100% NEW ZEALAND OWNED AND OPERATED ECONOMICS The ups and downs of KiwiBuild n BY RODNEY DICKENS
REINZ Auckland Median Section Price Slow progress with Weighted average of old cities/districts 700 Rolling 12 month average $000 700 KiwiBuild has meant 600 600 the targets of 1,000 500 500 completions in the 400 400 2018/19 June year and 5,000 in 2019/20 have 300 300 been dropped, although 200 200 the target of 100,000 100 100 0 0 new homes over 10 Jan-98 Jan-02 Jan-06 Jan-10 Jan-14 Jan-18 years remains.
KIWIBUILD FACES THREE CHALLENGES: KIWIBUILD HAS THREE MAIN ‘ARROWS’, WITH ONLY • It does little to get down exorbitantly high section prices, THE FIRST OF THOSE FIRED SO FAR: especially in Auckland (see Figure 1), as well as in other • The "Buying Off The Plans" initiative. As at 12th major urban centres that have priced first home buyers February, developers had signed up to build 10,355 and more out of the market. KiwiBuild homes, 279 were under construction and 62 had been completed. A total • Many first home buyers and second-chancers can't of 47,853 people had expressed afford the "affordable" KiwiBuild homes; up to $500,000 interest in buying KiwiBuild for houses outside of Auckland and $650,000 in homes, but only 313 had Auckland, although less for apartments. prequalified, which • Selling hundreds of KiwiBuild homes in Te Kauwhata includes getting and Wanaka was always going to be a challenge. bank approval before HOWEVER, KIWIBUILD WILL MAKE SOME PROGRESS IN GETTING DOWN NEW HOUSING COSTS: • Speeding up resource consenting will lower compliance costs, reduce holding costs and possibly mean developers can have lower budgeted margins. • The use of smaller new homes and, for houses, smaller sections. • Mass/factory production may generate economies of scale.
28 carters.co.nz ECONOMICS
participating in ballots. For A TOTAL OF 47,853 Monthly Number of Consents for New Dwellings the major Auckland projects, PEOPLE HAD Source: Statistics New Zealand 3,500 KiwiBuild homes will be sold EXPRESSED INTEREST 3,000 via real estate agents which IN BUYING KIWIBUILD 2,500 should help overcome the HOMES, BUT ONLY 313 2,000 problems around ballots. HAD PREQUALIFIED 1,500
• According to the Housing 1,000
NZ website, there are several 500 major Auckland projects that will involve a mix of "social,
affordable [KiwiBuild] and market houses"; Mt Roskill Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 (10,000), Mangere (10,000), Northcote (1,500) and Oranga Number of Consents for New Houses (1,000). Source: Statistics New Zealand 2, 500 • An article on www.interest.co.nz reported “44 different 2, 300 2, 100 organisations have now been shortlisted and asked to take 1, 900 part in the next stage of the [mass building] process”. 1, 700 1, 500 The first arrow has experienced teething problems, but 1, 300 1, 100 the Government’s KiwiBuild Unit has sent emails saying 900 700 significant progress is in the pipeline. In time, the second 500 and third arrows will have an impact. The Government may introduce new initiatives to help overcome the affordability Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 problem, like rent-to-buy or shared equity schemes. Minimum Mortgage Interest Rate (1) Source: www.goodreturns.co.nz IT IS TOO EARLY TO WRITE KIWIBUILD OFF, BUT IT 10 WILL MAKE A MUCH SMALLER CONTRIBUTION THAN 9 THE OFFICIAL FIGURES WILL STATE BECAUSE IT WILL 8 CROWD OUT OTHER BUILDING: • Some of the people buying KiwiBuild homes will have 7 bought new homes anyway, while some will have otherwise 6 bought existing dwellings and some of the sellers of these 5 will have built. 4 • Lack of capacity to build more is often quoted as a 3 constraint but isn't supported by the historical experience Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 of the industry being able to cope with massive upturns.
• To the extent KiwiBuild boosts building activity, it will Monthly Net External Migration (2) add to an already tight labour market and, in time, mean Source: Statistics New Zealand 7000 marginally higher interest rates. This is in the context of the 6000 range of government policies that will boost inflation and, 5000 in time, interest rates. 4000 Hate it or love it, KiwiBuild isn't likely to go away soon, 3000 especially if, as seems likely based on recent political opinion 2000 polls, there is a Labour coalition government after the late- 1000 2020 election. It will most likely continue to disappoint, but 0 should still make enough progress to provide some boost to -1000 the level of building, even after allowing for crowding out. It will have implications for what is built, where it is built and Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 who builds it that will be relevant to builds in most major Monthly National Section Price (3) urban areas and some smaller centres. Source: www.reinz.co.nz 280 260 FOOTNOTES 240 (1) The lowest of the average floating and various fixed 220 mortgage rates charged by the largest mortgage lenders. (2) 200 Adjusted by Statistics New Zealand to remove the seasonal 180 pattern. (3) Median section price reported by REINZ ($000) 160 140 120 Rodney Dickens is the Managing Director of 100 economic and property research specialists, 80 Strategic Risk Analysis Limited – www.sra.co.nz 60 Rodney can be reached on [email protected] or 027 288 2209 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20
29 FREE EVENT
TRADE ONLY
IT’S BACK AGAIN FOR 2019! The CONZTRUCT trade shows are heading to main centres across New Zealand again this year, kicking off at Hamilton’s Claudelands Events Centre on 30th April and touring through to September. These events bring together construction industry professionals and suppliers in one easy, expo environment! You can have valuable discussions with suppliers, look for product developments on the expo floor or attend an LBP workshops that will assist with your skills maintenance requirements. These shows are free to attend and too good to miss, so grab your crew and leave site a little early when CONZTRUCT is on in your area.
For more information and to register go to WWW.CARTERS.CONZ/CONZTRUCT
Hamilton Tues 30 Apr Auckland Nth Tues 23 July ROUND 1 ROUND 3 Claudelands Events Centre Eventfinda Stadium Whangarei Wed 01 May Tauranga Wed 24 July ASB Sports House TECT Auditorium, Baypark Auckland Sth Thurs 02 May Napier Thurs 25 July Vodafone Events Centre Rodney Green Event Centre
ROUND 2 Wellington Tues 18 June ROUND 4 Christchurch Mon 16 Sept Westpac Stadium Air Force Museum Palmerston Nth Wed 19 June Dunedin Tues 17 Sept Central Energy Trust Arena Edgar Centre New Plymouth Thurs 20 June Invercargill Wed 18 Sept TSB Stadium Velodrome, ILT Stadium Queenstown Thurs 19 Sept Queenstown Event Centre
CARTERS are back on board for the 2019 series and bringing the CONZTRUCTION ZONE with us. This zone is set to be packed with 25+ key suppliers showcasing their latest products and solutions direct to you. FREE EVENT
TRADE ONLY
IT’S BACK AGAIN FOR 2019! The CONZTRUCT trade shows are heading to main centres across New Zealand again this year, kicking off at Hamilton’s Claudelands Events Centre on 30th April and touring through to September. These events bring together construction industry professionals and suppliers in one easy, expo environment! You can have valuable discussions with suppliers, look for product developments on the expo floor or attend an LBP workshops that will assist with your skills maintenance requirements. These shows are free to attend and too good to miss, so grab your crew and leave site a little early when CONZTRUCT is on in your area.
For more information and to register go to WWW.CARTERS.CONZ/CONZTRUCT
Hamilton Tues 30 Apr Auckland Nth Tues 23 July ROUND 1 ROUND 3 Claudelands Events Centre Eventfinda Stadium Whangarei Wed 01 May Tauranga Wed 24 July ASB Sports House TECT Auditorium, Baypark Auckland Sth Thurs 02 May Napier Thurs 25 July Vodafone Events Centre Rodney Green Event Centre
ROUND 2 Wellington Tues 18 June ROUND 4 Christchurch Mon 16 Sept Westpac Stadium Air Force Museum Palmerston Nth Wed 19 June Dunedin Tues 17 Sept Central Energy Trust Arena Edgar Centre New Plymouth Thurs 20 June Invercargill Wed 18 Sept TSB Stadium Velodrome, ILT Stadium Queenstown Thurs 19 Sept Queenstown Event Centre
CARTERS are back on board for the 2019 series and bringing the CONZTRUCTION ZONE with us. This zone is set to be packed with 25+ key suppliers showcasing their latest products and solutions direct to you. · The new MS adhesive and sealant that sticks and seals in one · High strength, flexible, multi-purpose · For indoor or outdoor use · Low VOC · Very good resistance to water and weathering · Ideal for use on most building substrates Scan QR code for more info or vist www.sika.co.nz