85 ISSUE

GET YOUR FEBRUARY/MARCH 2021 SKILLS MAINTENANCE POINT!

PLACEMAKERS MT 2020 TRADE STORE OF THE YEAR ANSON TAN 2020 TRADE ACCOUNT MANAGER OF THE YEAR COVER

The great service throughout the PlaceMakers network gets better every year, and the folks at the Hardware Journal obviously noticed. 2020 Get the full run-down on how PlaceMakers did at the 2020 Hardware Awards. Check it out on page 6. FOREWORD VIEW FROM THE GM OPERATIONS

REASONS TO BE POSITIVE

Welcome to the first edition of Under Construction for 2021 – I hope the year has started well for you all. While we look to the rest of the world with some concern, especially where friends and relatives overseas are still affected by Covid-19, from a construction point of view here in New Zealand, the good times continue to roll and look set to continue.

Most economic analysts see a positive 2021 ahead, as Tony Alexander has been suggesting for some time, whose predictions for our sector we look at on page 22.

Many of you will have upcoming workstreams that are looking pretty full, which is a great place to be. Still, especially when business is looking busy, it’s important to look ahead. See page 26 for business coach Graeme Owen’s advice on setting targets in unpredictable times.

For all the damage it has wrought across the globe, Covid-19 and the threat of its economic repercussions might well have made a positive contribution in helping to solve our longstanding undersupply ADVERT of apprentices. For all the damage it has There has been a huge increase in the number of apprentices, since the Government’s support on both sides of the line was introduced last year. wrought across the globe, On page 24, we talk with Greg Durkin, interim CEO of BCITO, about the Covid-19 and the threat of factors behind the apprentice boom. its economic repercussions We also hear from builders about their take on apprenticeships – might well have made check out page 6 to read their views. Finally on this topic, Mat Stockwell a positive contribution is a former Air New Zealand pilot, whose job disappeared almost in helping to solve our overnight, and who is now following a long-held ambition to become a qualified builder – read his story on page 3. longstanding undersupply of apprentices Lastly, I am proud that our staff took out two awards at the Hardware Journal Awards last year. As one of the stores operating during lockdown, our Mt Wellington team were working hard for our customers during a challenging time, and it is encouraging to have their efforts recognised by the industry. As always, we will continue to work hard to meet and exceed your expectations.

I hope you enjoy our latest issue and all the best for the busy times ahead!

Gary Woodhouse General Manager Operations

1 PAC NEWS CONTENTS PLACEMAKERS APPRENTICE CREW

NEWS HEADLINE 3 PAC NEWS Apprentices of the Month for October and November; former pilot Mat Stockwell’s A NEW CAREER new career takes off 6 PLACEMAKERS NEWS PlaceMakers success at Hardware Awards TAKES OFF 21 INDUSTRY NEWS State housing gets its own BCA; New home consents in the highest since Our apprentice column provides an opportunity for PAC members to share their views, experiences and ideas, while providing insight for builders who employ them. 6 regional series began 22 INDUSTRY FOCUS Tony Alexander’s economic analysis Mat Stockwell was one of hundreds of New Zealand airline pilots who lost their jobs in the 24 INDUSTRY TRAINING Why apprenticeships are booming fallout from Covid-19 – so he took the opportunity to revisit a long-held desire and is now an apprentice carpenter

fter years of training and Fortunately, he didn’t have to think Mat has been impressed with the level of FEATURES some time as a flight instructor, long about what to do next. problem-solving required on building sites. AMat spent seven years flying commercial planes, most recently A320s “I’ve always had an interest in building “I never thought building would be 8 BUILDERS’ BUSINESS How do apprentices fit in your business? for Air New Zealand, domestically and I wanted to be a builder when I simple, but I’ve still been really pleased and overseas to Australia and the Pacific left high school, but I ended up to see that to be a successful builder, 14 12 MBIE – CODEWORDS Bringing rentals up to standard Islands. But his flying career came to becoming a pilot. I always kept that you really need to be thinking and an abrupt halt mid-2020, when he was interest in the back of my mind, so, when coming up with different solutions every one of more than 300 pilots laid off. I lost my job, it presented an opportunity day, which keeps it really stimulating.” 14 MBIE – CODEWORDS Carports without consents to follow that dream again.” “No one expects their career to In terms of the future, Mat is focused 18 BRANZ Hold-down fixings knowledge nailed disappear overnight, but it happened to As an apprentice, Mat is under no on completing his apprenticeship first a lot of people in 2020 and I was one illusions that he has a lot to learn, but and has some ideas about what might 26 SUCCESSFUL BUILDER Focus on milestones instead of goals of them,” said Mat. he has found there are transferrable come next. skills from his former career, such as people skills. “My first goal is to become qualified 28 LEGAL Directors’ duties in the face of insolvency builder. Further down the line, I’d like “As a pilot, you can meet the person to see what options are available in the 30 BUILTIN Understand the Building Defects Exclusion you’re flying with on the day and you design side of things. Right now, I am 26 have to quickly work well together happy to be contributing to building as a team. Building is similar when quality houses for New Zealanders to you go into new teams on a new site live in. I’ve found a lot of satisfaction – getting on with people well means in seeing a build come together – it’s OTHER STUFF everyone is able to do their jobs.” a very tangible result you can see and this is an aspect of the job that There are big differences, too. Mat I really appreciate.” 32 INDUSTRY NEWS NZS 3604:2011 to be updated says he was surprised just how physical building is and the regular hours took Mat has a message for anyone 32 SKILLS MAINTENANCE Record your LBP skills maintenance – some adjusting to. considering shifting careers and you’ve earned it! becoming an apprentice builder. “Physically, it’s been quite demanding. 30 I would have considered myself “I don’t claim to know it all after a relatively fit guy from competing in 4-5 months, but I’ve already triathlon, but building is very tiring on learned a lot. I’m really enjoying it ISSUE 85 > FEBRUARY/MARCH 2021 the body and it has taken me time to and I can see a rewarding future in it. >PUBLISHER > DCL Corporate Publishing > ENQUIRIES > [email protected]; (04) 384 5689 adjust to that. The predictable routine So, I recommend building to anyone

DCL Corporate Publishing reserves the right to accept or reject all editorial or advertising material. No part of Under Construction magazine may be published without the express permission of the is a change for me, too. Starting at willing to put the work in for a long-term publisher. All rights reserved. Opinions expressed or imagery in Under Construction magazine are not necessarily those of PlaceMakers or the publisher. No responsibility is accepted for the suggestions of Ex-pilot Mat Stockwell puts his 7:30am and finishing at 5:00pm is career. I also love the idea that I might the contributors or conclusions that may be drawn from them. Although the publisher has made every effort to ensure accuracy, the reader remains responsible for the correct use and selection of any tools, apprentice skills to work a more stable work pattern than I be able to contribute to building my materials and systems followed, as well as the following of any laws or codes or standards that may apply. was used to as a pilot.” own house some day.”

2 3 PAC NEWS NEWS PLACEMAKERS APPRENTICE CREW PRODUCT NEWS

OCTOBER APPRENTICE OF THE MONTH LEVENE, THE LEGENDARY KIWI PAINT IS BACK!

Second-year apprentice tackles big renovation job with client as hammer-hand

onrad Kotze, a second-year I double-checked my maths, that’s for work got done and it was all ready for apprentice from Wellington, was sure! Then I had to get all the gear and my boss to continue with the next phase Cgiven the opportunity to manage do the job up to my boss’ standards!” when he arrived the following week.” the work on site for a week when his boss had other commitments. Not only Conrad says that he overcame this Conrad learnt a lot when he took on that – the client was on site too to give challenge by making sure he knew a challenge of being in charge on site. Conrad a hand!. what was expected of him and by communicating clearly with the owner “It was good not having the boss around, Conrad explains that between them, while working alongside him, so that so I could take on more responsibility, they had to do some big structural jobs. they were both on the same page. and I found out that I had picked up skills that I wasn’t even aware of”. “We had to plant piles and build bearers “The client and I worked well together, to name just a couple of the big tasks,” so we made good progress every day. says Conrad. To make sure I was getting things right, I reported back to my boss each day Managing the job for a week with photos of the work we’d done.” meant Conrad had to take on more organisational responsibility than he Conrad explained the client was had before. happy that work continued even when Conrad’s boss couldn’t be there. “I had to make key decisions, including ordering the right amount of concrete. “Keeping on with the job meant that the Levene has a paint for every house - from bold colours to many shades of grey

NOVEMBER APPRENTICE OF THE MONTH Levene, the legendary Kiwi paint is back. Made right here in New Zealand with the latest paint technology, Levene is a full paint range including interior and exterior broadwall, enamels, Third-year apprentice makes a splash with bath cradle ceiling, roof, fence finish, multipreps and undercoats

ndrew Hopley, a third-year “I looked it up online via a few different asy-to-apply, with great coverage, When it comes to undercoats,Levene For doors, windows and trims, there’s apprentice from Christchurch, avenues, like YouTube and Skillshare, so Levene topcoats are built for the has you covered for any job: Levene Water-Based Enamel. Made for Awho is becoming a regular winner when I arrived at work the next day, I felt E trade. Levene offers a 15-year a pigmented sealer with excellent interior and exterior jobs, it offers good here, was faced with the challenge of prepared and ready to get stuck into it.” guarantee* on exterior broadwall paint, sandability, designed to cover any block resistance and excellent adhesion. installing a bath, including making the 10-year guarantee* on roof paint water-based stain; a fast-drying, bath cradle. It turned out to be worth the effort, and a 5-year guarantee* against mould tintable acrylic sealer undercoat Available only from PlaceMakers, because when the boss inspected and mildew on kitchen and bathroom with great adhesion; plus oil and water- the Levene paint range is tintable off the Andrew had heard from qualified builders Andrew’s work, he was rapt! He paint so you know that the job will be based multiprep undercoats that do Dulux colour wall, featuring the iconic how difficult bath cradles can be. suggested a couple of little things that Andrew receiving his prize from done right. the lot, with great coverage and Dulux Colours of New Zealand. There Ali Scarlet of PlaceMakers Riccarton could be improved, which Andrew is excellent adhesion. are hundreds of Dulux Colours of “Most builders I know, their pet-hate is looking forward to getting right next time. “A little bit of nervousness is OK, but try Made to withstand New Zealand’s New Zealand to choose from, all bath cradles! I have to admit, this made not to take it home with you. That said, tough weather conditions, Levene inspired by the places in which we live, me a bit nervous,” says Andrew, who There are two things that Andrew will walk research and preparation is vital to Exterior, available in semi-gloss or low Available only from work and play. From the rich red of prepared himself by researching how to away with from his bath cradle challenge make a job you haven’t done before sheen and touch dry in just 20 minutes, PlaceMakers, the Roaring Meg to the brilliant blue of install a bath and frame-up a cradle. – try not to stress and do your research. that much easier!” is durable and features built-in long- Lake Tekapo, natural shades like lasting UV protection. Levene Interior, Levene paint range is Narrow Neck to the soft pinks of available in semi-gloss and low sheen, tintable off the Dulux Alexandra. And of course, the most is hard-wearing and fast-drying with colour wall, featuring popular whites, including Okarito, PAC CASH TRADE DISCOUNTS low roller splatter;it is touch dry in 30 Mt Aspiring and Cardrona. minutes and can be recoated after two the iconic Dulux Colours Don't forget that all current PAC members have access to hours, so you can get that crisp, clean Levene. We’re back. Only from cash trade discounts on safety gear and hand tools plus of New Zealand finish faster. PlaceMakers. other product ranges (some exclusions apply) at all PlaceMakers branches. Visit the PAC hub for more details - pac.placemakers.co.nz 5 NEWS PLACEMAKERS NEWS

In terms of the future, Roger is looking Former Branch Operator Mark Moffit YOUNG RETAILER OF PUTTING OUR CUSTOMERS FIRST forward to the team having another explained Anson had worked hard THE YEAR FINALIST good year in 2021. and his customer-service strengths resulted in this award. “This year is going to be exciting – with some of the new systems that were “Anson’s performance in the ultra- rolled out in 2020, like ‘Trade App’ competitive market has been and ‘Skip the counter’, we are set up to outstanding – a tribute to his tenacity further cement how we make our service and having built genuine trust with his all about our customers. Some of our many long-standing customers,” said customers are old school – they want to former Branch Operator Mark Moffit. come in and chat, while others want to order on their phone at night – we now Anson was grateful for the team have options to suit everyone.” he had around him and proud to have his efforts recognised. TRADE ACCOUNT MANAGER Morgan Caine, PlaceMakers Westgate OF THE YEAR WINNER “This award is the most exciting and unforgettable moment in my career,“ This award recognises a young retailer said Anson. “I feel like after coming or builders’ merchant who has achieved a long way, I have finally made it. I also a high standard in their retailing career. really appreciate the support I’ve had Morgan Caine, from PlaceMakers from the team, which has been a big Westgate was a finalist in this award. part of why I have this award now.“

PlaceMakers also had two finalists in this category – Bradley Cross The strong presence from PlaceMakers Queenstown of PlaceMakers team and Craig Wallis from PlaceMakers members in these The Mt Wellington crew, winners of the Trade Store of the Year award Cook Street in Auckland. categories further RETAILER OF THE YEAR FINALIST demonstrates our The 25th annual Hardware Awards took place early November in Auckland, where PlaceMakers ongoing commitment was nominated in all ‘Hardware and Builders’ Supply Merchant’ categories and took home two awards. to better serving our customers fter a year of uncertainty “I would say Mark Moffit, who was member plays a part and every and challenge, it was great to Branch Manager until recently, part works together – from sales, have our teams’ achievements deserves a lot of credit for unifying to customer service, to operations. RETAIL STORE OF THE YEAR A Anson Tan, Trade Account Manager of the Year recognised and celebrated, with our 80-strong team, but I know It’s definitely a case of ‘teamwork FINALIST PlaceMakers taking out the Trade Mark agrees that every team member makes the dream work’.” The category is open to hardware Store of the Year and Trade Account went above and beyond in their own The 2020 Trade Account Manager of and builders’ supply merchants of all Manager of the Year awards. efforts to adapt and to always keep the Year was won by Anson Tan from sizes, who were judged for the quality the customers’ needs in mind during PlaceMakers Mt Wellington. of their service. PlaceMakers Waiheke TRADE STORE OF THE YEAR the very challenging 2020 year.” was a finalist in this award. PlaceMakers Mt Wellington branch Some of our customers This award acknowledges an was named Trade Store of the Year Roger is clear that the award is account manager who continuously The strong presence of PlaceMakers are old school – they Joe Reece, PlaceMakers Whitianga – a category open to all hardware, evidence that staff have worked want to come in and demonstrates the highest standard team members in these categories builders supply trade stores that service together to put their customers’ of professionalism in sales further demonstrates our ongoing the trade sector. needs first. chat, while others and account management. This award recognises a truly commitment to better serving our want to order on their outstanding retailer – builders’ customers. We are pleased to be Mt Wellington was one of the handful “We’ve got a service promise and phone at night – we Anson impressed the judges with merchant who has shown initiative acknowledged by the industry in this of PlaceMakers branches operating the company values to uphold, both his strong customer focus to create and enterprise in leading their team. way and would like to extend our at Level 4 lockdown. Roger McRae, of which put the customer at the centre now have all the options value and solve problems. Anson Joe Reece, from PlaceMakers congratulations to all the winners, recently promoted to Branch Manager, of what we do, and I believe these to suit everyone was a consistently strong performer, Whitianga, was a finalist in this finalists and nominees! believes that teamwork is what really come alive in our branch. The delivering strong results regardless of award, and not for the first time, mattered most. way we work here is that every team the market conditions. having been a finalist in 2017 too!

6 7 BUILDERS BUSINESS

XXXNEW KIDS ON THE BLOCK Builders’ Business is a column by builders for builders. Its objective is to provide a forum, particularly for small business operators, in which to share knowledge, experience, tips and ideas

Have you taken on any apprentices lately? What else can be done to encourage more people : Q to become apprentice builders?

Firm: Tom Wilson Builders Limited right person – a younger person this for the subsidy and the opportunity to Today’s apprentices are tomorrow’s qualified builders time, I think, to balance out all the old support all these young people. Interviewee: Tom Wilson guys I have on staff now! I know the apprentices themselves have Role: Owner / Director found the free training so valuable. experience, by the time they’re qualified necessarily appreciate what a career Location: Wellington Firm: Kuriger Builders Firm: A1 Homes Wairarapa These are young people who can see builders, they couldn’t be happier. in building can offer. Building also Staff: 4 a way forward. Interviewee: Conrad Kuriger requires good academic levels with Interviewee: Paul Southey While I appreciate the government’s Role: Owner today’s technology, regulatory I took on a new apprentice in early Role: Owner operator I have noticed the homeowners are apprentice wage subsidy scheme Location: and compliance systems. Wairarapa 2020. He had been a hammer hand Location: now aware and more interested in for employers, it has not affected our Staff: 11 already for a few years and is older, Staff: 11 (office staff) the growth in apprentices too – they decisions - we would have taken on When I left school 49 years ago, my so he’s already capable of doing a lot ask who the apprentices are and they two apprentices anyway. We started two new apprentices teacher rang my parents to ask why of proper building work. He is the first At A1 Homes, we don’t employ check in with them to say hi and see last year. One is straight out of I wasn’t going to university, yet here apprentice I’ve taken on since I started tradespeople directly – we have what they are doing. We recognise there is school and the other is in his mid- I am all these years later with a career the business back in 2009. Since then, 150 subbies, most of whom we’ve 30s and came from a transport I’ve loved in an industry that I’ve loved I’ve hired qualified and experienced been using for over ten years. I know Before I was a builder, I used to be a shortage and we believe and infrastructure background. The and has given me so much. We need builders, rather than apprentices. all of our subbies have taken a secondary school teacher and I think we should play our part government’s apprenticeship subsidy to show that the trades offer a really advantage of the government’s to encourage more people to take up to train up the new didn’t influence our decision to take good life to a lot of school leavers, Back when I did my apprentice subsidy scheme – including trades, we have to reach the kids early, these guys on; we’ve trained more than and that it isn’t a second-best option. carpenters, painters, plasterers, and the in primary school. Make sure they generation of an industry 40 apprentices over the past 40 years. apprenticeship, we had to concrete guys. can still get access to the old ‘manual’ that’s given us so much To an extent, I think as a society, with pay all the fees and book classes, but let them know it’s not just Most of our apprentices aren’t such a focus on what is high risk, we costs, so making training There is lots of confidence out there woodwork and metalwork, there are Typically, we take on two every year. straight out of school, they often come have dissuaded people from taking now, because there is lots of work so many paths in construction, like It’s a company decision we’ve made from previous careers. We’ve had on physical jobs, but there are various free is a great bonus for coming in. We’ve been in business for design for example. Teachers need to to support the industry. We recognise former police officers, ice cream store avenues that open up when a young the apprentice too 16 years and 2021 is looking like it will know that trades are a great option for there is a shortage and we believe we owners, all sorts of backgrounds. I person takes up building. Those who be our busiest year ever. As a result, a lot of their students – you can travel should play our part to train up the new have noticed a theme that they come find the physical side too demanding Taking on an apprentice is I’ve noticed young builders who have the world on a trade now, if worldwide generation of an industry that’s given from employment where they feel often shift into the compliance and a commitment from the employer, gone out on their own, three to four travel comes back, of course! us so much. constrained and they come to building regulatory side of things, which also to ensure the apprentice can be years after becoming qualified, who to be creative. offers a good career-path. People just exposed to all the different types of are taking on apprentices too, which Firm: Dunlop Builders Limited In terms of how else to attract more need to know it is an option. building work needed to qualify. So, is great. young people to the trades, from It isn’t an easy transition for people, Interviewee: Bryce Dunlop the apprentice subsidy scheme has what I have seen, BCITO has been though. It’s a physical job and this Lastly, I know that some office been a good incentive for employers I think to encourage more Role: Managing Director getting some traction with encouraging shouldn’t be under-estimated, but professions get paid more. While because it assists with the work time people to take up trades, Location: Wanaka school leavers to consider trades. The the outdoor lifestyle and sense of builders can also make very good lost to the learning process in the we have to reach the kids Staff: 20 government’s free training is helping, achievement outweigh this ten-fold. money, that isn’t the main point – early years. Back when I did my but I think we need to show more young Nevertheless, I tell my apprentices it the real value comes from doing apprenticeship, we had to pay all early, in primary school. Staff shortage is our biggest people when they’re in school, what will take two years to develop something you love. If you get to the the fees and books costs, so making Make sure they can still challenge for 2021 – it has been it means to work in a trade. It’s tricky, a builder’s physique, and until then, end of your life and you’ve loved doing training free is a great bonus for the get access to the old since I was an apprentice 30 years because all the teachers have been it will be tiring. Once a builder gets what you’re doing, I would say that is apprentice too. It’s exactly what the ago. We’ve just taken on two to university, so they can’t tell students to 55 years old, it can be tough to still living your best life. If young people country needs to help address the ‘manual’ classes but let apprentices – a man and a woman what it’s like being a tradie. What be in such a physical job. have an opportunity to understand this, tradie shortage. them know it’s not just – and both have been to university. we’ve done as a company, is go to the trades will be a very attractive option woodwork and metalwork More and more of our apprentices schools ourselves, and have the years In terms of how to encourage more for them. 2021 is already booked up with work have been to uni – they either don’t 11, 12 and 13 come out on site visits. apprentices, I think we need to get in and there seems to be more past that The government’s response has been love the course they’ve taken, or they This gives them a sense of what it’s like front of school students more. School is too, so I will take on another apprentice the best thing ever for our industry graduate and soon realise they don’t on a building site and what the career an academic place and teachers are in early 2021. I just need to find the and everyone is really grateful, both want to be in an office all day. In our might look like. usually academic people, so they don’t

8 9 NEWS WHAT'S ON

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10 11 REGULATION - CODEWORDS MBIE

After 1 July 2019, newly installed Rental properties must have efficient doesn’t have unreasonable gaps BRINGING RENTALS UP TO STANDARD extractor fans must have a minimum drainage for the removal of storm or holes in walls, ceilings, windows, diameter and exhaust capacity. These water, surface water and ground skylights, floors and doors which differ for kitchens and bathrooms: water. Rental properties with an cause noticeable draughts. All unused New Healthy Home Standards for rental properties in New Zealand became law on 1 July 2019. enclosed sub-floor space must have open fireplaces must be closed off These set out specific and minimum standards for heating, insulation, ventilation, moisture ingress • In kitchens, extractor fans must a ground moisture barrier. or their chimneys must be blocked to and drainage, and draught stopping in rental properties have a minimum diameter of prevent draughts. 150mm or an exhaust capacity of GROUND MOISTURE BARRIERS at least 50 litres per second. MUST EITHER: The draught stopping guidance s the deadline for compliance • There must be one or more fixed The online insulation tool will help • Be a polythene sheet and installed document, which has more specific with the standards is fast heaters that can directly heat the landlords find out whether they need • In bathrooms, extractor fans must in accordance with section 8 of information on the draught stopping Aapproaching, when working at main living room. to upgrade the insulation in their rental have a minimum diameter of NZS4246:2016, or standard, can be found at tenancy. a client’s property, you might get asked property to meet the standards. You can 120mm or an exhaust capacity of govt.nz/healthy-homes/draught. some questions about the standards and • Heater(s) must be fixed (not search for the tool at tenancy.govt.nz. at least 25 litres per second. • Have a vapour flow resistance of what landlords need to do to make sure portable), and must be at least at least 50MNs/g and be installed EXEMPTIONS TO THE HEALTHY their properties comply. 1.5 kW in heating capacity and The insulation guidance document, The online ventilation tool is available by a professional installer. HOMES STANDARDS meet the minimum heating capacity which contains more specific for landlords to figure out if they need In some situations, a property may From 1 July 2021, all private rental needed for the main living room. information on the insulation standard, to install new extractor fans in the The moisture ingress and drainage be exempt from complying with the properties must comply with the can be found at tenancy.govt.nz/ kitchens and bathrooms of their rental standard document, which has healthy homes standards or parts of standards within 90 days of any new There is an online heating assessment healthy-homes/insulation-standard. properties. You can search for the tool more specific information on the the standards. More information on or renewed tenancy. tool to calculate the requirements at tenancy.govt.nz. moisture ingress and drainage exemptions is available at can be for the living room in a rental home. standard, can be found at found at tenancy.govt.nz/healthy- Responsibility for meeting these Alternatively, landlords can use the The ventilation guidance document, tenancy.govt.nz/healthy-homes/ homes/exemptions-to-the-healthy- standards sits with the landlord of the formula outlined in Schedule 2 of the which contains more specific moisture-and-drainage-standard. homes-standards. property and, if they haven’t already, Residential Tenancies (Healthy Homes information on the ventilation landlords should now be thinking Standards) Regulations 2019. There is standard, can be found at DRAUGHT STOPPING STANDARD about the work that needs to be a handy guide to read before getting tenancy.govt.nz/healthy-homes/ Draughts increase the likelihood of completed to ensure their rental started with the Tool – landlords will ventilation-standard. lower temperatures in houses and can properties are compliant with the need the measurements of their living make it more expensive for a tenant to standards by the deadline. room walls, floor, windows, ceiling MOISTURE INGRESS heat their home. Fixing draughts is an and any other features to accurately AND DRAINAGE STANDARD easy way to reduce heating bills Tenancy Services’ website has calculate the heating requirements. Moisture in a home can lead to poor and keep rental homes warm and dry. a wealth of easy-to-understand You can find the tool and guide at health outcomes for tenants and can be information about the standards, tenancy.govt.nz/heating-tool. destructive to the quality of a house. Landlords must make sure the property as well as easy-to-use tools that calculate the requirements for The heating guidance document individual properties to be compliant contains information on how to find This article is an excerpt from Codewords Issue 98. Reading Codewords articles that are relevant to your licence class is with the standards. out what size heater(s) are required, a mandatory requirement for Licensed Building Practitioners. These questions can be answered through the LBP portal, exemptions to the heating standard online at underconstruction.placemakers.co.nz or recorded on the magazine, then provided at the time of renewal. The standards can be accessed whether and further details. This guidance you’re in the office or on site using your can be found at tenancy.govt.nz/ The insulation requirements cover new mobile phone. Below is a brief overview heating-standard. builds and existing rental homes CODEWORDS QUIZ ISSUE 98 of some of the standards you may get asked about, and where to point people INSULATION STANDARD 1 How can a landlord calculate 2 A house has some insulation, but 3 When must landlords comply 4 To comply with if they need more information. The healthy homes insulation VENTILATION STANDARD the heating requirements for you are not sure if it meets the new with the new standards? the healthy homes a living room? healthy homes requirements. Where standards for rental properties, standard builds on the current Mould and dampness caused by poor can you find more information? a) From 1 January 2021, where must extractor fans HEATING STANDARD regulations, meaning some existing ventilation is harmful for tenants’ health a) Using an online tool at all private rental properties be located? The World Health Organization insulation will need to be topped up as well as a landlord’s property. The tenancy.govt.nz/healthy-homes. a) Guidance documents must comply with the available from tenancy.govt.nz/ standards. a) In all kitchens (WHO) recommends a minimum indoor or replaced. All existing insulation ventilation standard targets mould b) By using calculations in formula healthy-homes. and bathrooms. temperature of 18˚C. By installing must still be in reasonable condition and dampness in rental homes. outlined in schedule 2 of the b) From 1 July 2021, all private Residential Tenancies (Healthy b) Residential Tenancies rental properties must b) In all kitchens, and in heating that can reach this temperature to meet the requirements. This means Homes Standards) Regulations (Healthy Homes Standards) comply with the standards. bathrooms where you on the coldest days of the year, tenants there should be no mould, dampness, Rental homes must have openable 2019. Regulations 2019. cannot open an external c) From 1 July 2021, all private window. will be able to keep warm all year round. damage or gaps. All insulation must windows or doors in the living c) 1.5 kW heating capacity is OK for c) By using an online calculation tool rental properties must be installed in accordance with room, dining room, kitchen and all living rooms, regardless of size. attenancy.govt.nz/healthy-homes. comply with the standards c) In kitchens that are The heating standard means rental NZS 4246:2016 Energy efficiency – bedrooms. Kitchens and bathrooms within 90 days of any new located in the main d) A and/or B. d) All of the above. or renewed tenancy. living area (open plan). properties must comply with the installing bulk thermal insulation in must have extractor fans that vent to following requirements: residential buildings. the outside.

12 www.building.govt.nz 13 REGULATION - CODEWORDS MBIE

and is commonly used in connection carport, or a ready-to-assemble a carport in order to achieve a better CARPORTS WITHOUT CONSENTS with a dwelling. A carport is covered, carport kit, they would need to fire performance. Also, these side-walls but not fully enclosed, which must be make sure that the design has been can result in less likely use of a carport open on one or more sides. A fully verified by a Chartered Professional for the storage of any substantial enclosed space with doors would be Engineer. If a supplier or manufacturer quantity of substances or materials that reasonably considered a garage, does not have such verifications, may increase the potential for fire. and these are covered by different rules. you will still be able to cater for this exemption as an LBP under exemption CONSIDER THE EXTRA STRUCTURAL CONSIDERATIONS 3B, but a homeowner will not be ROOF AREA A carport may be freestanding or able to exercise it without obtaining It is important to note that the storm attached to another building. However, verifications from the right people. water runoff from larger carports if you wish to attach a carport to may be significant, and this will need a building, due consideration should A producer statement may be a good to be taken into account, and be always be given to the impact the means of demonstrating that a kitset compliant with the Building Code, fixtures or connections may have on design complies with the clause B1 of as stormwater must be collected in the weather tightness and structural the Building Code, for example, if the a way so that it does not create a risk integrity of the existing building. structure is designed by an engineer to land, buildings and structures using B1/VM1. nearby. This would generally be All carport structures are required to achieved by installing gutters, comply with the requirements of clause BE AWARE OF FIRE RISKS downpipes and stormwater pipes. The B1-structure of the Building Code. For Regardless of whether a building roof-water must then be discharged example, a carport must resist the consent is required, a carport must appropriately. It is recommended that lateral force acting on its structure comply with the Building Code and your you check with your local council about (wind and seismic), as well as potential council’s planning rules. The Building where to discharge the stormwater. loads on top of its own weight (such Code limits fire spreading and heat as snow loads). The structure of carports transmitting across boundaries. FURTHER INFORMATION A carport can be covered but cannot be fully enclosed, otherwise it becomes a garage, which is not covered by this exemption is outside the scope of the Acceptable You can find the updated information in Solution B1/AS1, especially when A carport generally has a lesser risk of the guidance document Building work cantilevered structural elements are fire spread to neighbouring buildings that does not require a building consent designed to resist loads. than a garage due to the venting of on the Building Performance website at From 31 August 2020, a range of new and extended building consent exemptions were added to heat and smoke from its open sides. building.govt.nz. Schedule One of the Building Act, including a range of options for building carports. Read below KITSET SOLUTIONS It is common practice to use low-height to find out more about what is and isn’t included in the exemptions If a homeowner is looking to use this walls or lattice type screens (trellis type exemption for a pre-manufactured components) to cover the side-walls of everal of the new and extended without a building consent. with the building code requirements. exemptions require the assistance Sof a Licenced Building Practitioner Exemption 18A applies to free-standing It’s important to remember that the This article is an excerpt from Codewords Issue 98. Reading Codewords articles that are relevant to your licence class is (LBP) to supervise or carry out the design or attached carports where: building consent process is only one part a mandatory requirement for Licensed Building Practitioners. These questions can be answered through the LBP portal, and construction work, which will allow of the legal requirements for building online at underconstruction.placemakers.co.nz or recorded on the magazine, then provided at the time of renewal. consenting authorities to focus more • They are built on ground level. a carport. All the usual requirements on higher risk building work. It is also about durability of materials, district a great reflection of the expertise that • The floor area is between 20m2 planning, location of services LBPs provide, and will help boost their and 40m2. and boundary restrictions still apply. CODEWORDS QUIZ ISSUE 98 profile to the public. • Any design or construction work CARPORT VS GARAGE 5 Who can design, or 6 For a carport to be 7 What rules apply to 8 Who can design, The current Exemption 18 in schedule 1 is carried out or supervised by There is no detailed or fully explicit supervise the design, eligible under the distance from a boundary or construct, a carport of the Building Act, amended in August a licensed building practitioner definition for a carport in the current of a carport under schedule 1 exemption: under exemption 18A: under exemption 18? 2020, applies to free-standing or or the design is carried out building regulations. However, Clause exemption 18A? a) It must have one or more a) The Building Code. a) A LBP. attached carports that are: or reviewed by a chartered A1 of the Building Code classifies a) A design LBP. sides open. professional engineer. a carport as an outbuilding. This b) The council’s b) A chartered professional b) A chartered professional b) The floor area must be planning rules. engineer. • On ground level. classification primarily applies to engineer. less than 40m2. Exemption 18A recognises the capacity buildings not intended for human c) A and B. c) A Homeowner. 2 c) A carpentry LBP. c) It must not touch the • No greater than 20m . and capability of professional people habitation that are an accessory to the main building. d) None. d) All above. in design and construction of carports principal use of associated buildings. d) A and/or B. This amendment also introduced over 20m2 and less than 40m2. These d) A and B. Exemption 18A to allow greater floor professionals are well placed to manage A carport is a covered parking structure area of carports to be constructed the risks associated with compliance for the storage of lightweight vehicles,

14 www.building.govt.nz 15 ADVERT ADVERT NEWSTECHNICAL BRANZ

Clause 2.4.4.1 relates to nails generally, • For lintels, see clauses 8.6.1.7 and FIXING THE BOTTOM HOLD-DOWN FIXINGS and Table 2.2 is a reference guide for 8.6.1.8, Table 8.14 and Figure 8.12. OF WALLS fixing requirements and describes the Fixing the trimming stud to the floor types and capacity of fixings. OPENINGS IN WALLS joist, continuous boundary joist or NZS 3604:2011 paragraphs solid blocking of a timber-framed floor ROOF FIXINGS 8.6.1.7 and 8.6.1.8 cover where applies to a single-storey building or to The roofing must be secured to the tile there are openings in a wall. Where upper floor framing to the intermediate battens or purlins in accordance with a lintel supports a rafter or truss floor. Fixing is with a 25 × 1mm strap the manufacturer’s requirements. (and depending on the wind zone, with 6/30 × 2.5mm nails into both E2/AS1 also has information on fixings lintel span and loaded dimension), the joist or solid blocking and the and layout for some roof materials. it must be fixed against uplift as per stud. Alternatively, a fixing providing Table 8.14. a minimum of 7.5kN in tension may The fixings/connection for roof be used. members are specified in This includes using 25 × 1mm NZS 3604:2011 Tables 10.1 to 10.18. galvanised steel straps to secure the Specific requirements for truss fixings lintel to the trimming stud and the will be stated on the truss layout plans trimming stud to a floor joist or solid It is better to be safe than provided by the truss supplier. blocking as shown in Figure 8.12. sorry, and as hold-down

FIXINGS IN WALLS Each strap must be fixed with metal straps and proprietary Walls are covered in NZS 3604:2011 6/30 × 2.5mm nails into both the lintel fixings are relatively clause 8.8.6, Table 8.19 and Figure 8.12: and the trimming stud. Alternatively, inexpensive and easily a fixing with a minimum 7.5kN capacity • For top plates, see clause 8.7.6, in tension along the line of the trimming fixed in place, it is Table 8.18 and Figure 8.12. stud may be used. reasonable to also use them elsewhere, even if not specifically required

Where ground floor framing is on a concrete floor slab, the strapping is folded under the bottom plate and fixed to each side of the stud using The fixings required on a lintel to secure structure against uplift 6/30 × 2.5mm nails. A proprietary anchor that meets the requirements of NZS 3604:2011 clause 7.5.12.3 or BRANZ regularly receives queries about hold-down fixings to the exterior walls of a cast-in bolt must fix the bottom plate timber-framed buildings. This overview sets out the fixing requirements in NZS 36 0 4 :2011 to the slab within 150mm of the stud. for resistance to uplift for the various framing members PROPRIETARY FIXINGS n high wind conditions, roofs are are openings in the wall and none AVAILABLE subject to powerful uplift forces. to other walls where there are no Where a roof is Proprietary fixings are available for IBoth the roof and its framing must be openings. BRANZ is often asked if all locations requiring to be secured securely fixed, so the uplift forces travel this is correct? supported by a lintel against uplift. These include timber down through the building structure to over a window or door, connectors, stud straps, stud anchors, the foundations. NZ S 3604 :2011 IS AN it is critical that the load cleats, bottom plate fixing anchors ACCEPTABLE SOLUTION and hold-down brackets. Where a roof is supported by a lintel NZS 3604:2011 Timber-framed is properly transferred over a window or door, it is critical buildings provides solutions for around the opening NZS 3604:2011 does not allow for that the load is properly transferred resistance to wind uplift for the plywood or any other wall lining, either around the opening. different parts of the building by tying to the exterior or the interior of the wall the building structure together with NZS 3604:2011 is a stand-alone framing, to substitute for the connections However, it can seem strange to fixings, including bolts, nails and solution, so if you are using this required between the wall framing have multiple straps and other hold- metal straps. NZS 3604:2011 is an pathway to show Building Code members to resist wind uplift forces. down fixings on exterior walls of Acceptable Solution to Building Code compliance, it is important to use the However, several proprietary solutions timber-framed buildings where there clause B1 Structure. solutions in the standard. can provide for this.

18 www.branz.co.nz Story continues overleaf 19 TECHNICAL NEWS BRANZ INDUSTRY NEWS

HOLD-DOWN FIXINGS CONTINUED NORTH ISLAND CONSENTS AT ALL-TIME HIGH

New home consents in the North Island reach 29,310 in November - the highest number DISTRIBUTION OF FIXINGS the lintel is wide. These forces THESE ARE MINIMUMS, recorded since the regional serious began 1991 CAN SEEM UNEVEN must then be transferred to the two YOU CAN DO MORE Complying with NZS 3604:2011 trimmer studs (at each side of the Remember, NZS 3604:2011 prescribes n total, 3,881 new dwellings were the year ended November 2019. This The remaining two regions, requirements to resist uplift generally opening), so higher capacity fixings the minimum standards necessary to consented in November– an increase consisted of 21,947 houses; 10,633 Marlborough, and the West Coast, results in numerous straps and fixings are required than provided by attain compliance. It should never be Iof 1.2% from October accounting townhouses, flats, and units; 3,557 saw no changes to consented dwellings. to the wall framing wherever there nailing only. These concentrated a barrier to designers and builders for seasonality. This is down from the apartments; and 1,844 retirement units. are openings for windows or doors. forces must then be transferred to providing better options to the 8.8% month-on-month increase from NON-RESIDENTIAL BUILDING However, other parts of the wall the ground via the connection at the construction of the building, especially September to October. IN THE REGIONS CONSENTS where there are no openings may base of the trimming stud. To do this, where the time and costs to do so are Eight of the 16 regions consented more In the year ended November 2020, only have nail fixings. nail straps or other proprietary relatively minimal. The November figures comprised dwellings in November 2020 compared non-residential building consents fixings are required. of 2,056 standalone houses; 1,219 to November 2019, led by Auckland totalled $7.0 bn, down 6% from the townhouses, flats, and units; 408 (up 620 to 1,740; +55.4%) Canterbury November 2019 year. The building CHEAP TO ADD MORE apartments; and 198 retirement units. (up 70 to 596; + 13.3%) and Hawke’s types with the highest value were: By their nature, individual nail fixings Bay (up 39 to 130; 42.9%). Northland, are less precise than metal straps or “Townhouses, flats, and units have been Bay of Plenty, Gisborne, Taranaki, • Education buildings – $1.1bn Finally, it is better to proprietary fixings. It is better to be a major driver of housing growth in and Nelson also showed an increase. (up 9.3%) have a relatively even safe than sorry, and as hold-down recent years. Auckland in particular has distribution of stiffness metal straps and proprietary fixings seen a rapid increase in the number of Six of the remaining regions saw • Storage buildings – $1.1bn are relatively inexpensive and easily medium- to high-density housing being a decrease in dwellings consented (up 20 %) and connections around fixed in place, it is reasonable to consented,” said Construction Statistics over the same period, led by the perimeter and also use them elsewhere, even if not Manager Michael Heslop. Wellington (down 74 to 284; -20.7%), • Offices, administration, and public throughout a building specifically required. Otago (down 26 to 150; -14.8%) transport buildings – $967m In the year ended November 2020, and Manawatu-Whanganui (down 24 (down 1.3%). Finally, it is better to have a relatively the total number of new dwellings to 117; -17%). Waikato, Tasman, and even distribution of stiffness and consented was 38,624 — up 4.2% from Southland also recorded decreases. This distribution of fixings may connections around the perimeter seem uneven, but the wind uplift and throughout a building. A similar forces transferred from the section distribution and spacing of hold-downs of roof above the lintel to point loads will homogenise the behaviour of the STATE HOUSING GETS IN-HOUSE BCA at each end can be quite large, structure under extraordinary loadings Metal straps are inexpensive and effective fixings especially when the opening below such as storms or earthquakes. Kāinga Ora, the government agency that builds and maintains state houses, has set up its own building consent authority, called Consentium, to improve standards and service

Article first published in Issue 180 of BRANZ Build magazine. www.buildmagazine.org.nz. Words and figures supplied by BRANZ. onsentium’s National Building housing quality and helping Kāinga Ora and repairs and maintenance that Consent Authority Manager scale up its build programme to ensure require a building consent. CAnna McCrossan says the aim the delivery of healthy, warm and dry of the new building consent authority state houses, which provide homes for Setting up the new BCA has not PROVE YOUR KNOWLEDGE (BCA) is to lift building consent generations to come.” been without controversy, with standards and provide exceptional Auckland Council losing 18 staff to Tick the correct answers below and record what you’ve learnt in the record of learning on the back page! service to Kāinga Ora and its The consenting team will operate it, before councils went to the new contracted builders. out of hubs in Auckland, Wellington and agency in protest. 1) Wind uplift forces transferred from the 2) As a substitute for connections between 3) Where ground floor framing is on Christchurch, with building inspectors section of roof above the lintel to point wall framing, NZS 3604:2011 allows for a concrete floor slab, a proprietary loads at each end can be quite large. plywood or other wall lining either to the anchor that meets the requirements of “Our team will work with our design located across the country. It will It is not clear if the existence of Which of the below is NOT sufficient to exterior or the interior of the wall framing NZS 3604:2011 clause 7.5.12.3 or and build partners to deliver high quality independently process, grant and issue Consentium will have any impact on transfer this load through the trimmer studs to be used to resist wind uplift forces. a cast-in bolt must fix the bottom plate consenting and inspections services building consents for public housing, builders not contracting to Kāinga Ora. and to the ground: to the slab: within statutory timeframes. as well as provide inspections and Code On one hand, it will remove workload a) True. a) Nails. a) Within 150 mm of the stud. Compliance Certification (CCC). from council BCAs. On the other hand, b) False. We will also engage with our design if council staff who have left to join b) Nail straps. b) Within 100mm of the stud. and build partners early to provide Consentium’s scope will cover building Consentium cannot be replaced, it c) Proprietary fixings. c) Within 200mm of the stud. education and advice on how to comply consent services for public housing remains to be seen if councils will be with the Building Act. Ultimately, it’s of up to four levels. This will include able to process the remaining consent NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation. about contributing towards improving new homes, the retrofit programme, applications any faster.

2020 www.branz.co.nz 21 NEWSVIEWS INDUSTRY FOCUS

rates were the cause, or they were one BENEFITS OF THE BUILDING BOOM element aggravating other factors. This time around, the Reserve Bank cut its official cash rate by 0.75% in 2019 and by the same amount again in March last year.

They have also promised to keep interest rates low for a number of years and even for a while allowed people to think they might take their cash rate negative this year – which they now almost certainly will not do.

Third, one element of this pandemic- related shock is an increased focus The table displays Dwelling consents issued from 1974 to 2020 from people on their living arrangements and a desire for them to reason is that the ability of the things like computer game development, be better. This has spurred a surge in sector to respond quickly to any movie filming, and getting ready to home renovations bigger than anything boosting measures is limited by serve food and make beds for foreign we have seen before. a range of factors. tourists when they return over 2022, the best employment opportunities for many The benefits to the economy from One of these limiting factors is the people now lie in the construction sector. a likely surge in annual consent numbers availability of land able to be built from 38,000 recently to over 40,000 on with short notice. Another is But even within the construction sector this year are many. Most significantly, the sometimes lengthy consenting itself, there will be competition for there is the large multiplier effect of process. The big constraint, however, labour between the different sections. home construction. is a shortage of not just skilled That house building is strong is no Whether its an a apartment block, a row of townhouses, or a house, building generates a multiplier effect for the economy tradespeople, but even labourers who surprise, we can now say in hindsight. The building of a house, block of can undertake the sometimes quite But commercial construction may also 2020 brought a lot of unexpected things. One was a recession that didn’t behave like previous townhouses, retirement village, or physical work on a building site. show some unexpected strength for recessions, which was particularly relevant for our industry. Economist Tony Alexander explains mid-rise apartment building provides two reasons. some of the background to this and what the next challenges are a boost for multiple sectors. There are The government moved quickly to ensure the planners, architects, environmental the growing number of apprentices in One reason is that many businesses uring the 1970s, when the Now we have had another recession. term shock to activity is associated consultants, council staff, civil the building sector was kept on during across all sectors have to boost New Zealand economy Is it like the 1970s and GFC downturns not with a housing collapse, not even engineering firms, concrete suppliers, the depths of the Covid-19 crisis last productivity because of labour Dexperienced recession resulting with collapsing house construction? a flattening out, but instead an actual timber processors, manufacturers of year with a special programme to fund shortages. For some, that means better from soaring oil prices and loss of No. Is it like the other recessions, where lift in construction, which looks likely to home fittings, contractors across the businesses for their apprentice costs. configured premises perhaps in more access to key export markets, house construction mainly flattened out though continue through this year and next. full range of skills, real estate agents, But the need for more people to build efficient locations. Plans for getting such construction plummeted. In fact, the with a lot of caution? No. financiers, mortgage brokers, marketers, the tens of thousands of houses Kiwis premises built would have been put annual number of dwelling consents This unique situation comes about transport operators, and so on. are demanding (with more to come on hold with the onset of the Covid-19 issued around the country fell from from a variety of factors. First, there home, we suspect, when borders fully pandemic. But now that we can see 40,000 in 1973 to just 15,000 come The huge spillover effects is the well-known shortage of housing The huge spillover effects of building reopen), means the construction sector the NZ economy is bigger than it was 1982. After a recovery through to of building a house and increasing efforts being made to: a house explain why, in the old provides career opportunities across before the pandemic, and there is 1986, there was another downturn – days, when politicians would seek to a multitude of fields for all types of light at the end of the tunnel regarding not quite so large – associated with explain why, in the old • Free up land. artificially boost our economy ahead people with all sorts of existing skills or infections – courtesy of vaccinations – the 1987 sharemarket crash, then the days, when politicians of a general election, they would non-skills! businesses will be looking to action high interest rate-induced recession would seek to artificially • Encourage the entry of people into target increased home building. That their construction plans now. just after that. boost our economy ahead the construction sector. doesn’t happen these days and a key At a time when so much focus remains There was another recession late in of a general election, they • Intensify land use through rule the 1990s associated with the Asian would target increased changes preventing some councils Financial Crisis, drought, and high stopping mid-rise developments. Tony Alexander has worked as an economist in New Zealand since 1987, initially with Westpac, then a share broking firm before almost 26 years with the BNZ as Chief Economist. He went out on his own late in 2019 and spends considerable time writing interest rates, and house construction home building about the NZ economy with an emphasis on the housing market and explaining key economic developments in layman’s terms. eased again, but only slightly. Then came Second, interest rates did not rise He is a columnist for the Sunday Star-Times, publishes a free weekly newsletter at tonyalexander.nz and frequently delivers the GFC, when consent numbers fell from This is a unique downturn in our heading into this downturn. In all webinars as well as presentations in person. 26,000 to just 13,500 come 2011. economy, whereby the biggest short- previous recessions, either rising interest

22 23 NEWSINDUSTRY TRAINING BCITO

REACHING THE AUDIENCE ROVE AND BCITO APPRENTICESHIPS BOOMING Promoting the trades to a wider When I was at school, the AND THE FUTURE audience is primarily the responsibility attitude was that trades The government’s recent Review of BCITO. Last year’s TV commercial of Vocational Education (RoVE) ‘A Tricky Chat’, which framed a teenager’s were further down the recommended a change to how announcement to his parents that he ladder, but we have seen vocational education is provided. wants to be a tradie as a type of ‘coming a significant shift in the BCITO will be replaced by new out’ conversation, addressed the issue organisations in a transition period over of pursuing a career in the trades as not views of students, teachers the next couple of years. Durkin believes being commonly accepted. and parents, especially in the transition will be smooth for both the past ten years employers and apprentices. “It was a very successful campaign and has been seen and enjoyed in “BCITO will work with the new agencies homes across the country,” says Durkin. “We’ve done a lot of work with schools that will take responsibility for “However, a lot of our marketing is on and I believe those we work with now apprenticeships, and I know many of social media, where we have tens of have a broad approach to the options our existing staff will be employed by thousands of people interacting with us.” put in front of students. these new agencies. That is where our capability lies, in our people, so I am SCHOOL FOCUS “Having said that, NCEA does orient hopeful the momentum we have built Engaging schoolkids is another strand students toward full-time study when they will only grow from here.” of BCITO’s approach to promoting leave school. Our view is that completing a career in trades. an apprenticeship is a tertiary education, HOW BCITO WORKS but that educations is being completed “We are in 350 of the 500 secondary at work.” BCITO oversees 15 different Alexey Plyshevsky, Blade Rapina, Troy Patu, carpentry apprentices at L T McGuinness Ltd schools in New Zealand. We help run construction trades, with 85% of what is now called Materials Technology, A UNIQUE RELATIONSHIP apprentices registered with it. which many of us would haver known Asked if builders can get involved in Last year, BCITO announced an all-time-record of more than 16,000 apprentices in training. as woodworking when we were at promoting building trades, Durkin The organisation assists employers We talk to interim CEO Greg Durkin about the factors driving the boom school,” says Durkin. says that builders are in a unique with apprentices’ training by position with their clients, because providing training materials, he undersupply of apprentices and he supports the view that As part of the $1.6bn Trades “We now provide a digital environment they often form relationships that are meeting up with the apprentices has been a long-term problem employers can’t take it lightly – for and Apprenticeships Training Package, to upload evidence of work, which high in trust. and assessing their progress. T in New Zealand, especially in the benefit of both the apprentice $320m has been set aside to support becomes part of a student’s portfolio construction; however, 2020 saw and the employer. free trades training in critical industries, to take into an apprenticeship. Up “When you build or renovate a house “Across the 15 trades we look after, a big increase in numbers. BCITO including the construction sector. to 11,000 students every year will that the client is happy with, they trust we have 200 staff who travel out to interim CEO Greg Durkin says there are “The main factor for an employer about A further $412m has been invested achieve credits in that program, which you and, as part of that relationship, they see employers every day, catching a number of reasons behind the surge. whether to take on an apprentice, is in the Apprenticeship Boost initiative, is used to prepare them and make see you as a good person. So when up with each apprentice every the work in front of them. Employers which offers support for employers to them aware of the options available a builder is looking for an apprentice, couple of months. “We’ve seen a significant increase in need range and continuity of work retain apprentices and to hire and train in construction.” a good place to start is with people who the number of apprentices training to take on an apprentice and do the more people. already trust you – your previous clients, “The employer provides the training since the first Covid-19 lockdown – apprentice justice. When asked how he would respond who may have children or friends who in a real-life building setting, and carpentry is up about 20% and some “The two initiatives had a big impact to builders who say that schools don’t would be suitable. we help ensure that the apprentice other trades are up more than 100%,” “Also, apprentices are not a viable on the number of apprentices from present trades as a good option for is making progress towards the says Durkin. business proposition in their first year, both sides of the equation – fees-free students, Durkin says that, while up to “There is value to a builder in standards they must meet, and make so knowing you can carry that study for apprentices and the subsidy ten years ago that was often the case, promoting the fact that they take on sure their training is being recorded, “I know that builders who train apprentice into future years, when their for employers. So now we’ve got more things are changing. apprentices, because apprenticeships so they can qualify. apprentices will sometimes complain skill level is such that they start paying apprentices keen on taking up a trade are a strong brand – people like them. about builders who don’t. In the past, the employer back, is important.” and more employers keen to take on “When I was at school, the attitude was Mums and dads and grandads like “It’s a training model where BCITO we’ve thought about 20% of builders apprentices,” says Durkin. that trades were further down the ladder, apprenticeships. When these people assists with learning resources who could train apprentices actually GOVERNMENT INITIATIVES but we have seen a significant shift in the choose a builder to work in their home, and assessment, while the employer do, but this year over 50% of employers This year, some of the challenges of “BCITO has also played its part with views of students, teachers and parents, they choose on values as well as just is the primary teacher.” taking on apprentices have either never employing apprentices have been effective marketing to make sure the especially in the past ten years. price,” says Durkin. had an apprentice before or haven’t taken away. As a pre-emptive move right message gets to the right people. trained one in the past two years.” to address a possible industry With a coalition of those three factors, downturn, the government introduced apprenticeships are now experiencing BCITO is the largest provider of construction trade apprenticeships in New Zealand. It is appointed by the Government to develop Durkin appreciates that taking on an initiatives to support trades training a genuine boom and we are thrilled and implement industry qualifications for the building and construction sector. BCITO provide a range of apprenticeships across apprentice is a big commitment, and the construction industry. about that.” fifteen trades within the building and construction industry. To find out more visit www.bcito.org.nz

24 www.bcito.org.nz 25 TIPS THE SUCCESSFUL BUILDER

2 SHORTER TIMEFRAMES The key here is to review your plan INTENTIONS, NOT GOALS TOWARDS MILESTONES on a monthly basis and stick with In most small businesses, At the moment, you can’t really cement it. However, when life happens the details of a long-term plan. So, quit and/or new opportunities come along, a one-page 90-day plan worrying if you don’t have one written be prepared to revise your plan. is quite long enough. down. You still need to set targets, but Especially when it focuses just make the time frames shorter. Look 3 FOCUS YOUR EFFORT for the milestones in between rather Riverbanks determine where the water on tactical stuff than aiming straight for the finish line. flows – unless it’s in flood and then the water overcomes the bank. Yet even In most small businesses a one-page 90- a small flow can be quite powerful in 4 CLARIFY YOUR WHY day plan is quite long enough. Especially one narrow channel. Just so, while most Living in unpredictable times is a new when it focuses on tactical stuff. small businesses are constrained by experience for all of us. The present outside factors, when such a business uncertainties raise questions that A 90-day plan may only have the is concentrated on one thing, it can be demand answers. following three sections: quite powerful. • Why are you making the effort? 1. Your long-term intentions So rather than rail against the (eg, to deliver well-planned external things you can’t change • Why are you taking the risk and affordable renovations to (the riverbank), look for opportunities and staying in business? family homeowners in my locality). you can pursue (the channels) and focus your energy on these. You • Why do you do what you do?” 2. Your strategies (eg, create can’t change the banks, but you can a website that showcases family select the channels. I often say to my Questions like these challenge your home renovations and master clients: “Don’t tell me what you can’t fundamental reason for being in a couple of strategies so we will be do. Tell me what you can do. Then business. Yet when you can answer found in online searches). do that!” them in a way that motivates and excites you, you start to feel passionate about 3. Some weekly task lists (eg, choose Narrow down the focus of your business why you are in business. It creates an a web designer, get testimonials (the things you can do) and become energy that others (new clients and Setting milestones and focusing on what can be done is a good approach when the future is less predictable than usual together, collate web materials, a specialist in one key area. This is the team members) will want to be a part of. learn how to use Google ads, way to increase your prowess in this Because not many people answer the learn how to use Facebook, start particular skillset and become sought “why?” question. How can you effectively plan in these unpredictable times? Business coach Graeme Owen says posting on Facebook, start after and even more attractive to your don’t make plans too detailed, focus on what can be done, and know what your ‘why’ is Google ad campaign etc). potential clients. So, why are you in business?

ou’ve heard the gurus say that you 1 SET INTENTIONS AND So, don’t get stuck in familiar Graeme Owen is a builders’ business coach at thesuccessfulbuilder.com. Since 2006, he has helped builders throughout should set goals if you really want CONSIDER FRESH APPROACHES approaches to tasks. Instead, identify New Zealand get off the tools, make decent money, and get more time in their lives. Grab a copy of his free book: The 15 Minute Sales to get ahead in business The way things are done is changing. what it is you need to do, then look for Call Guaranteed To Increase Your Conversion Rate: thesuccessfulbuilder.com/book-15-min-sales-call or join Trademates Y www.facebook.com/groups/TradeMates and in life. That is all well and good There is no certainty that you can do new ways to achieve that. Rather than and connect with builders who are scaling too: when the future is predictable. But in business the way you used to. For hoping to return to what was (and note: these changing times, who knows what example, recent events have provided the past always seems better than it next year will bring? a perfect opportunity for technology really was) embrace some fresh ways of PROVE YOUR KNOWLEDGE to penetrate our business practices doing things. It’s always good to have Tick the correct answers below and record what you’ve learnt in the record of learning on the back page! You may have been able to plan with – for handling pricing and quoting, different options. Don’t expect to be some certainty pre-Covid. But that same communications, supplies, automation able to do everything as you once did! level of certainty hasn’t quite returned. etc. If you stick with the processes you 4) Because the future is less 5) When setting a 90-day plan, 6) The idea behind focusing your effort is: However, all is not lost! developed over the past decades, you This is a time to look for newer (better) predictable than it was before it should include: Covid-19, you should: a) If you try as many things as possible, may be left behind by those adapting to ways of doing things. It may be the time a) 90-day strategies. some of them are bound to work. a) Stop setting goals and just go with It just means that we need to adopt newer ways. to upskill on that software package you b) Weekly tasks. b) By working on the things you can a method for setting directions and have been trying to avoid, but know the flow. control, you will make progress in spite staying on top of things. I call these Further, complications in obtaining you need! Or it may be the time to teach b) Consider new approaches that c) All of the above. of not being able to control everything. intentions and milestones. Get clear on international products and materials your builders to train the newbies. can help you towards the revised c) By working hard on the things you intentions you’ve set. your intentions. Then identify the next may give rise to new, more local can control, you will eventually bring everything under your control. milestone. Rinse and repeat. solutions. You may need to become Whatever it is, identify what you want c) Make no changes to your previous goals or ways to achieve them. familiar with substitutions you hadn’t to achieve and look for new ways of Here’s how it works. considered before. getting there. NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation.

2626 www.thesuccessfulbuilder.com 27 LEGAL LEGAL

“The removal of decision-making BREACH OF DIRECTORS’ DUTIES powers from directors in such circumstances is a recognition that directors are not the appropriate The Supreme Court recently issued a decision that is relevant to any business facing decision-makers in times of insolvency hard trading conditions or near-insolvency. This is because their decisions may be compromised by he Supreme Court has issued had breached his duties as a director, as and when required. The focus conflicting interests and, even where that a new decision, Madsen-Ries and ordered him to pay $280,000 to of this section is on a particular is not the case, they may be too close to Tand Levin as Liquidators of the liquidators of Debut Homes, to cover obligation, rather than the business the company and its business to be able Debut Homes Limited (in liquidation) v some of the shortfall to creditors. as a whole. to take a realistic and impartial view of Cooper, which reviews the law relating the company’s situation.” to breaches of directors’ duties. The The Court of Appeal overturned the The Supreme Court’s view on decision provides important guidance High Court’s decision, determining section 136 is: If a company is or may be insolvent, for company directors when facing that the decision to complete the “It is not legitimate to enter into a director must consider the views hard trading conditions. houses was a “perfectly sensible a course of action to ensure some of all of its creditors. Quite when Trading insolvent can result in legal consequences business decision”. creditors have a higher return, where and how this is done remains a difficult The Supreme Court found that this is at the expense of incurring new balancing act. companies in insolvency or near- THE SUPREME COURT liabilities which will not be paid. WHAT SHOULD THE DIRECTOR • Voluntary administration, insolvency situations must use the The Supreme Court overruled the Court In other words, it is not legitimate to HAVE DONE? which provides for the If you are a director of a company various formal mechanisms provided of Appeal and restored the decision of ‘rob Peter to pay Paul’.” The Act has a number of mechanisms appointment of an administrator which is in an insolvency or in the Companies Act 1993 (the Act), the High Court, including ordering available for dealing with insolvency to maximise the chances of the near-insolvency situation, it is critical rather than trying to trade through. Mr Cooper to pay $280,000. Section 131 – duty to act in and near-insolvency situations: company’s survival, and which for you to take steps to deal with A copy of the decision is available good faith and in best interests also must be approved by the situation as quickly as possible, here: courtsofnz.govt.nz/assets/ In coming to its decision, the Supreme of the company • A creditor’s compromise, a majority of creditors. otherwise you face potentially cases/SC-29-2019-Debut-Homes-v- Court reviewed each director duty This section requires a director to act in which usually involves all or part significant personal liability. Cooper.pdf contained in the Act: good faith and in the best interests of of a company’s debts being • Liquidation, to wind up the the company. cancelled and must be approved by operation of the company. NEED MORE INFORMATION? BACKGROUND Section 135 – reckless trading a majority of creditors. If you need advice on any of the The defendant, Mr Cooper, was the Under this section, a director must not The Supreme Court confirmed that this A feature of all of these mechanisms is above, please contact Alysha Hinton sole director of Debut Homes Ltd, agree to the business of the company is a subjective test and that the courts • A court-approved creditor’s that the decision-making is placed in on (04) 471 9452 or at a residential building company. being carried on, or cause or allow the are not well-equipped to second-guess compromise, where the court must the hands of either the creditors or an [email protected], At the end of 2012, one of Debut business of the company to be carried on, business decisions made by directors. also agree that the compromise is independent party. The Supreme Court or your local Duncan Cotterill advisor Homes’ financiers decided to cease in a manner likely to create a substantial However, the Court also noted that fair and reasonable to all creditors. noted that: (duncancotterill.com). funding them. Based on advice from risk of serious loss to creditors. there are a number of exceptions to the the company’s accountant, Mr Cooper subjective test, including where: decided to wind down operations, The Supreme Court decided: Duncan Cotterill is a full-service law firm with offices in Auckland, Wellington, Nelson and Christchurch. Its dedicated while completing existing developments “If a company reaches the point where • There is no evidence of actual construction and projects team can help make your business a success by working with you to put the deal together. but not taking on any new projects. continued trading will result in a shortfall consideration by the director of the Disclaimer: the content of this article is general in nature and not intended as a substitute for specific professional advice on any It was expected that once the company to creditors and the company is not best interests of the company. matter and should not be relied upon for that purpose. wound down, there would be salvageable, then continued trading approximately $300,000 owing in will be in breach of s135 of the Act… • In an insolvency or near-insolvency GST to IRD. this applies whether or not continued situation, there is a failure to PROVE YOUR KNOWLEDGE trading is projected to result in higher consider the interests of creditors. The decision to wind down operations, returns to some of the creditors than Tick the correct answers below and record what you’ve learnt in the record of learning on the back page! rather than cease trading immediately, would be the case if the company had • There is a conflict of interest, or the was to the benefit of the homeowners been immediately placed into liquidation, action was one no director with any 7) The Supreme Court’s decision in this 8) If a company is or may be insolvent, 9) The Supreme Court’s decision found that: case is relevant to: a director must consider the views of of the completed residential properties and whether or not any overall deficit understanding of fiduciary duties a) The respondent had breached his duties which creditors? and unsecured trade creditors, who was projected to be reduced.” could have taken. a) Only the appellant and respondent in as Director and was personally liable supplied materials and labour, but this particular case. a) Secured creditors. for $280,000. was to IRD’s detriment as the company Section 136 – duty to not • A director’s decisions are irrational. b) The respondent had breached his duties b) All business owners. b) The largest creditor. as Director, but because he had paid most neglected to pay GST on the sale of incur obligations c) Any business owner trading c) All creditors. of his creditors, he was not liable. the properties. Under this section, a director must In this case, Mr Cooper had failed to near-insolvent or insolvent. c) The respondent had not breached his not agree to the company incurring consider the interests of all creditors duties as a Director, because most of the THE HIGH COURT AND COURT an obligation unless the director in an insolvency situation. Instead, parties were better off as a result of his decisions. OF APPEAL reasonably believes that the company he considered some creditors, but The High Court decided that Mr Cooper will be able to perform the obligation discounted the interests of others. NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation.

2828 www.duncancotterill.com 29 INSURANCE BUILTIN

specification, including to adequately apply waterproofing includes this clause and that it could BUILDING DEFECTS EXCLUSION but not limited to faulty membranes, flashings or other essential be relied on to decline such claims. sequence, procedure weathertightness components. or programme, or FAILURES Some interpretations have the effect Failing to paint the cut ends of timber 3. faulty materials, or of ruling out the majority of the largest weatherboards is likely to fall foul of potential claims from trades such as this exclusion. A basement that leaks 4. faulty workmanship, roofers and anyone installing cladding. due to improperly installed coil drainage is another claim that is likely when the building or structure was If the claim arises from mould or to fail due to this exclusion. It should be constructed, manufactured, altered, gradual deterioration, such as a slow noted that just the allegation of a failure repaired, renovated or maintained. leak that rots timber over time, then it could be enough for an insurer to is explicitly excluded as well. decline a claim under this exclusion. This exclusion does not apply to loss that is caused by or directly arises The exclusion does not apply to internal from the leakage of internal pipes, water penetration, such as leaks internal water reticulation systems from internal pipes or the failure of or internal cisterns. waterproofing in showers. IN A NUTSHELL

BREAKING IT DOWN BUILDING IT VERSUS The first point is that for a liability WORKING ON IT If your claim is due to actual claim to be triggered there must first We are strongly of the view, and have or alleged penetration of be “property damage”. This generally been successful arguing with insurers, external moisture or water means actual physical damage to that this exclusion is intended to apply into the building you’re not property owned by a third party. It to the construction of new “buildings covered. However, there are can also mean loss of use of property or structures” and not to situations circumstances where the right Insurance companies instigated building defect exclusions to limit their exposure from claims for which results in a quantifiable financial where tradespeople are working on interpretation, and the right external water penetration into buildings, following the leaky homes crisis cost to a third party. an existing building. supporting argument, can result in a successful outcome. To trigger this exclusion, there must SUCCESSES These complexities are one of Have you ever heard of the Building Defects Exclusion? Ben Rickard, from Builtin Insurance, be a failure or alleged failure of the For example, it should not apply if the most important reasons explains how this is an important detail to be aware of in many builders’ insurance policies building to meet the Building Code. a leak happens when retrofitting for using a specialist, such as Arguably, any external penetration that a heatpump or installing a skylight to Builtin, for your insurance. ollowing the leaky homes crisis of Building defects exclusion (from or any similar or like forms, in any allows water into the building is a failure an existing building. However, you the early 2000s (many would say a public liability policy) building or structure. of E2. It can also apply to the failure need to be aware that your policy F it is still ongoing) insurers wanted We will not indemnify You for any to limit their exposure to what they claim under this Policy in respect of Building defects exclusion (from saw as the substantial risk of claims or alleging Personal Injury or Property a contract works insurance policy) from external water penetration into Damage arising out of: This policy does not insure loss in Builtin is New Zealand’s trade insurance expert. For more information and an instant quote visit builtininsurance.co.nz buildings. They saw this as a risk that connection with a building or structure was just too big and too uncertain to • the failure or alleged failure of being affected by: price into ongoing coverage. any building or structure to meet or conform to the requirements a) moisture or water build-up or the PROVE YOUR KNOWLEDGE of the New Zealand Building penetration of external moisture or Tick the correct answers below and record what you’ve learnt in the record of learning on the back page! Some interpretations have Code contained in the First Schedule water, or of the Building Regulations 1992 the effect of ruling out the or any applicable New Zealand b) the action or effects of mould, 10) For the purposes of an insurance 11 ) A building defect exclusion is 12) Which of these answers is NOT true. majority of the largest Standard (or amended or substituted fungi, mildew, rot, decay, gradual policy, the meaning of ‘damage’ capable of excluding cover for: A building defect exclusion can be Regulation or Standard) in relation deterioration, micro-organisms, to property may include loss of use used to decline a claim relating to: potential claims from trades of the property which results in a) New buildings. to leaks, water penetration, bacteria, protozoa, or any similar a) Mould or gradual deterioration, such such as roofers and anyone a quantifiable financial cost to b) Work on an existing building. weatherproofing, moisture, or any or like forms, that is caused directly a third party: as a slow leak that rots timber over time. installing cladding effective water exit or control or indirectly by: c) Both other answers. b) Internal water penetration, such as leaks a) True. system; or from internal pipes or the failure of waterproofing in showers. They introduced what is known as 1. non-compliance with the b) False. the ‘building defects’ exclusion. • mould, fungi, mildew, rot, decay, New Zealand Building Code, or c) Retrofitting a heatpump or installing a skylight to an existing building. Here are a couple of examples from gradual deterioration, micro- different insurers: organisms, bacteria, protozoa 2. faulty design or faulty NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation.

30 www.builtininsurance.co.nz 31 NEWS INDUSTRY NEWS

NZS 3604:2011 TO BE UPDATED

It has been more than a decade since NZS 3604 was last revised. The building industry changes rapidly, and a lot has happened during this time, so MBIE’s Building Performance team has commissioned a review of this standard

wo of the key aims of the 1. Facilitating better thermal update are to help streamline performance. T the process of designing and consenting higher-density 2. Extending the scope to three full housing, and to support the Building storeys within the standard. for Climate Change programme by improving the operational efficiency 3. Foundations on expansive soils of buildings and improving the health and on liquefaction-prone soils. and wellbeing of their occupants. 4. Steel bracing elements for wide The standards development committee openings. responsible for the revision will also look to streamline the construction of 5. Support details for long-span beams several other design features that are and lintels. commonly consented. 6. Framing around internal stairwells. For a detailed outline of the areas this revision project will address 7. Isolated internal masonry walls. go to: standards.govt.nz/touchstone/ building/2020/nov/timber- 8. Reviewing a number of noted ADVERT standard-nzs-3604-being-revised- corrections and updates. experts-invited. The article also explains how technical experts can 9. Bracing. express their interest in participating in working groups responsible for It is planned for this revision to be those areas. published by Standards NZ in late 2023, and cited in the Building Code in the In summary, the following specific areas 2024 update. will be looked at as part of the revision NZS3604 is is one of the most widely used building standard in New Zealand to NZS3604:

PROVE YOUR KNOWLEDGE Evidence of actual learning rather than just ‘participation’ is a key requirement of the LBP renewal process. CODEWORDS UNDER ISSUE 98 CONSTRUCTION FEBRUARY/MARCH 2021 1 5 1) 6) 11) For ease of record keeping, use this coupon to collate your answers from within this issue 2 6 2) 7) 12) of Under Construction and then sign and date 3 7 3) 8) it as proof of your own learning. 4 8 4) 9) Signature Date 5) 10)

NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation.

3232 ADVERT