dec 2015 - PlaceMakers

ISSUE 48
GET YOUR DECEMBER 2015 SKILLS MAINTENANCE POINT!
WHAT'S ON YOUR
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FOREWORD VIEW FROM THE GM OPERATIONS & MARKETING
CONTENTS
New year, renewed focus
Planning ahead is key to making the most of your knowledge
Firstly, I’m pleased to announce that this year’s Blue September events
made another significant contribution to the Prostate Cancer Foundation’s
annual appeal. Thanks to your support – which is always strong and
hugely appreciated – we were able to donate more than $200,000.
6
Every year, the quality and scale of events put together by
PlaceMakers branches around the country reminds me how much
can be achieved with commitment and good planning.
They say failing to plan is planning to fail, a warning that is reiterated
throughout this month’s issue of Under Construction – whether you
aspire to become a millionaire, buy a new business, or better manage
your workforce. Looking ahead, assessing the risks, and determining
how you might overcome them is key to sustainability and success.
They say failing to plan is
planning to fail, a warning
that is reiterated throughout
this month’s issue of Under
Construction
16
This month’s update on the Health and Safety Reform Act, which focuses
on overlapping duties, also highlights the importance of planning. Where
more than one PCBU (person conducting a business or undertaking) is
responsible for workers’ safety, it’s much more productive to consult and
coordinate ways to meet the shared responsibilities than to duplicate
efforts – or worse, both assume the other will take responsibility.
Other regulatory changes – to the LBP skills maintenance scheme (see page 3)
and the Construction Contracts Act (see page 15) – have also recently
come into effect. Arm yourself with the information you need in order to plan
with confidence.
22
With the holiday season and a new year approaching, make time to
look at your business and determine your priorities for 2016.
2
SKILLS MAINTENANCE
PlaceMakers seminars calendar; Fake LBP fined
$3,000; New ‘mixed-model’ skills maintenance
scheme now in effect
5
COMMUNITY NEWS
Blue September raises more than $200,000; With
hundreds of thousands left homeless in Nepal after
two earthquakes, you can make a difference by
volunteering your skills
8
PRODUCT NEWS
Firth Designer Series
14 INDUSTRY NEWS
Dwelling consents trend upwards; The Government
has commissioned a report to improve urban
planning rules; Construction Contracts Act amended
4
Business practices of your fellow builders
BUILDERS’ BUSINESS
10 BUILDING & HOUSING
GROUP
In light of a recent report, MBIE reminds us what work
is exempt from consent under Schedule 1
12 BRANZ
Bevel-back weatherboards are back in vogue, but are
you installing them properly?
16 WORKSAFE
Who has the duty of care on a worksite with multiple
PCBUs? Find the answers here
18 BCITO
BCITO has developed a Strategic Workforce
Development Framework to help construction industry
businesses and employers better manage the
development of their workforce
20 CROWE HORWATH
Buying another business is a good way to expand, but
make sure you go into the process with your eyes wide
open
22 SUCCESSFUL BUILDER
To take your building business to the next level and
become a millionaire, learn to plan ahead
25 SPORT REPORT
Hayden Paddon earns three more years with
Hyundai Motorsport, while claiming another WRC
Top 10 finish at Rally Spain
25 SKILLS MAINTENANCE
Record your LBP skills maintenance – you’ve
earned it!
I wish you all a safe and enjoyable time!
Gary Woodhouse
25
General Manager Operations & Marketing
ISSUE 48 > DECEMBER 2015
>PUBLISHER >DCL Corporate Publishing > ENQUIRIES >editor@pmunderconstruction.co.nz; (04) 384 5689
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 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 the contributors or conclusions that may be drawn from them. Although the publisher has made every effort to ensure accuracy, the reader remains
responsible for the correct use and selection of any tools, materials and systems followed, as well as the following of any laws or codes or standards that may apply.
1
TRAINING
SKILLS MAINTENANCE
xxx
Building
code clauses de-coded
Skills maintenance – more than just points!
Stay up to speed with industry
changes and building code
clauses
SKILLS MAINTENANCE SERIES DEC 2015 with John Tait
New ‘mixed-model’ skills maintenance scheme is now in effect
PlaceMakers next round of skills maintenance seminars will focus on regulatory
changes, technical guidance, ensuring you maintain the level of competence
necessary to be a licensed building practitioner.
C
P
laceMakers ninth round of
seminars is almost complete, and
the focus on building code clauses
– and their common compliance issues –
is generating unprecedented discussion
among attending builders.
Presenter John Tait, who has extensive
experience as a building inspector,
is using live examples to prompt
builders to share their experience
handling different situations.
This round focuses on fall safety,
warning systems, and access routes.
“I expect builders to be a little
surprised at what does and does not
comply,” says John. “Come prepared
Venue:
Date:
Time:
PlaceMakers Blenheim
PlaceMakers Nelson (Richmond)
PlaceMakers Motueka
Wellington Session 1 - Porirua
Tuesday, 1 Dec
Tuesday, 1 Dec
Wednesday, 2 Dec
Wednesday, 2 Dec
7:00am - 9:00am
5:00pm - 7:00pm
7:00am - 9:00am
5:00pm - 7:00pm
Wellington Session 2 - Kaiwharawhara,
Evans Bay, Hutt City
Thursday, 3 Dec
7:00am - 9:00am
PlaceMakers Kapiti
PlaceMakers Levin
Thursday, 3 Dec
Friday, 4 Dec
5:00pm - 7:00pm
7:00am - 9:00am
at Work Act, as well as outlining the
changes to LBP skills maintenance.
to get involved in the discussion!”
Given that the Health and Safety Reform
Bill has now passed, and changes to the
skills maintenance scheme are starting
from November, this round of seminars
will include a review of the key concepts
in the new WorkSafe Health and Safety
Contact your local PlaceMakers
to register your interest and build
on the skills maintenance points
you’ve already earned through
reading Under Construction.
Fake LBP brought to justice
Prosecution of unlicensed builder fined for posing as LBP ‘first of its kind’ for MBIE
M
BIE’s Occupational Licensing
Team has successfully
prosecuted an unlicensed
North Shore builder for misrepresenting
himself as a person licensed to carry out
or supervise building work or building
inspection work, while not being licensed.
Thirty-two-year-old Bin Zhang, also
known as Aaron Zhang, was convicted
and fined $3,000 in the North Shore
District Court for charges brought
under the Building Act 2004.
Zhang, who has never been a Licensed
Building Practitioner (LBP), undertook
a bathroom renovation at a North
Shore home and stated he was qualified
for the job, completing and signing
a Record of Building Work for Restricted
Building Work, and provided a fake
LBP licence number. The contract
with the homeowner was terminated
2
Thomas says this prosecution is
the first of its kind that MBIE has
brought against an individual.
a month later due to concerns about
the quality of Zhang’s work.
“The Building Practitioners Board, which
oversees the LBP scheme, can take
action against LBPs; however, the
investigation of non-LBPs is undertaken
by MBIE, as the government’s
building regulator,” says Thomas.
We hope this recent prosecution
sends a clear message to
builders that they can only sign
off on restricted building work
if they are an LBP
- Investigations team leader
Simon Thomas
He was also trading as XR Builds
and Renovation Limited, which is
not registered as a limited liability
company on the Companies Register.
Investigations team leader Simon
“We hope this recent prosecution
sends a clear message to builders
that they can only sign off on
restricted building work if they are
an LBP – the same goes for carrying
out or supervising restricted
building work.
“Where MBIE has evidence
of anyone operating outside of the law,
they can expect to be caught
and prosecuted accordingly.”
hanges to the LBP skills
maintenance scheme, announced
earlier this year, come into effect
last month and the gradual transition to
the new skills maintenance scheme has
begun. The new framework moves away
from an entirely points-based system in
favour of a new ‘mixed-model’ approach,
with the aim of promoting more
meaningful and relevant learning
for LBPs.
2. YOU STILL HAVE TWO YEARS
TO COMPLETE ALL ACTIVITIES
Timeframes for meeting your skills
maintenance requirements will
not change – you still have two
years to complete all activities
before applying for relicensing.
The new model will require LBPs to
complete both compulsory and elective
activities. Compulsory activities include
reading LBP Knowledge articles in
Codewords, completing a quiz after
each article and demonstrating two
examples of on-the-job learning.
3. READING LBP KNOWLEDGE
ARTICLES IN CODEWORDS
The articles cover important
regulatory and technical information
relevant to your licence class.
Articles will be delivered directly
to your inbox.
The elective part of the new scheme
remains largely the same. Each hour
of relevant elective activity equals 1
LBP point. The only change is that the
minimum number of points required
has now been reduced by half.
4. COMPLETE A QUIZ
AFTER EACH ARTICLE
You will need to complete a short
quiz following each article, which
reinforces the information
covered within that article.
Although the new scheme officially
started on 2 November, LBPs are
only required to transition to the
new system once they renew their
licence on or after the change date.
5. ON-THE-JOB LEARNING IS
NOW A COMPULSORY ACTIVITY
On-the-job learning is an effective
and efficient way of capturing how
you continue to learn through the
course of your work. Over the two-year
timeframe, select at least two project
examples where you’ve had to learn
something new, or you’ve had to
complete a more complex job.
Evidence can include a copy of
a Record of Work (RoW) form,
a Certificate of Design Work
(CoW form), or any other form which
documents what you have done and
what you have learned on the job.
For example, if you are required to
submit your next skills maintenance
form by 13 May 2016, you will
continue to do activities and earn
points under the current scheme
until then. From 14 May 2016, you
will transfer to the new scheme.
Key details on the upcoming
changes to the LBP skills
maintenance scheme include:
1. COMPLETING BOTH
COMPULSORY AND
ELECTIVE ACTIVITIES
Completing compulsory and elective
activities promotes meaningful and
relevant learning, while saving you
valuable time and resources in
meeting your skills maintenance
requirements.
7. THE NEW SCHEME COMES INTO
EFFECT ON 2 NOVEMBER 2015
You will transfer to the new scheme
once you have completed your
skills requirements under the current
scheme. For example, if you are
required to submit your next skills
maintenance form by 13 May 2016,
you will continue to do activities and
earn points under the current scheme
until then. From 14 May 2016, you
will transfer to the new scheme.
8. AUDITING
Each year, a number of LBPs will
have their skills maintenance records
audited. Keep up-to-date copies
of the skills maintenance activities
you have completed by either
uploading your records online or
keeping a paper copy on file.
9. IT’S NOT ALL ABOUT
THE POINTS!
The purpose of the new scheme is
to promote meaningful learning and
encourage LBPs to focus on doing
activities that are relevant to their
licence class and area of practice. It
is designed to focus on key areas of
learning, which LBPs can effectively
apply to their line of work.
6. ELECTIVE ACTIVITIES
The elective part of the new scheme
remains largely the same. Each hour of
relevant elective activity equals
1 LBP point. The only change is that
the minimum number of points required
has now been reduced by half.
The elective part of the new scheme remains largely
the same. Each hour of relevant elective activity, such
as reading Under Construction, equals 1 LBP point
3
FEEDBACK
NEWS
BUILDERS' BUSINESS
COMMUNITY FOCUS
Do you carry out exempt work?
Rallying for a true blue cause
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
Q:
Do you carry out exempt work under Schedule 1? What are the pros and cons?
Firm: Ohlson & Whitelaw Ltd
Principal: Craig Ohlson Location: Whitianga
Staff: 10
We don’t do a lot of the exempt
work under Schedule 1. It does
have a number of benefits, though,
including that building owners can
look after their properties, including
any repairs or maintenance, without
having to get a building consent.
Anyone is able to perform work
under Schedule 1 exemptions,
so it’s difficult to ensure that
the work actually complies with
the Building Code
Also, not having to deal with councils,
or the extra cost of plans and permits,
is an advantage, particularly in cases
where they would be greater than the
cost of the actual building work.
On the downside, anyone is able
to perform work under Schedule
1 exemptions, so it’s difficult to
ensure that the work actually
complies with the Building Code.
Firm: Mudge Builders
Principal: David Mudge
Location: Wellington
Staff: 2
Firm: Leader Homes Ltd
Principal: Kevin Neil
Location: East Auckland
Staff: 8
Everyone does at one or stage or
another. To me, a major negative is
that it creates a loophole, so that work
can be deemed as maintenance and
therefore not require a consent, when it
probably should. Bathroom upgrades
are an example: waterproofing
and changing internal linings need
a consent, but people could classify it
as maintenance and avoid getting one.
Having exemptions is a good start, but
I think what is included needs to be
looked at more closely by a working
committee. Personally, I feel that there is
currently a lot of room for manipulation
and that DIYers have too much scope
to tackle jobs around the home.
Self-certification is also pretty topical
at the moment, but there have been too
many examples of poor work shown
up in the media recently to make it
practical, because it throws a cloud
over all builders in some people’s eyes.
Even though the current system isn’t
perfect, it’s the one we have and is
more thorough than self-certification.
We do some repairs and maintenance
work under it, and occasionally other
work too.
While I support the idea of exemptions
under Schedule 1, I think it needs to be
clearer about what is and isn’t included.
For example, if you were performing
repairs or maintenance on a wall where
50% needs to be replaced, and you’re
using the same materials, at what point
does that become a recladding job,
which requires a consent?
PlaceMakers staff and customers across the country raise over $200,000 for prostate cancer
S
ubtlety went out the window for this
year’s Blue September campaign,
with a clear message to ‘man up
and give prostate cancer the finger’!
Thanks to the efforts of PlaceMakers
staff and the generosity of PlaceMakers
customers, the country’s leading trade
merchant donated more than $200,000
to the Prostate Cancer Foundation.
At the moment, it isn’t very well
explained. It can also cause confusion
for customers, who might think they don’t
need a consent and wonder why you’re
asking them to pay for one.
“Prostate Cancer is the most common
cancer in New Zealand men, killing
around 600 fathers, sons, brothers,
husbands and friends each year,” says
chief executive Graeme Woodside.
I think the most important thing for both
contractors and customers is to make
sure that if they are unsure whether or
not work is exempt, they should go and
have a conversation with their council.
“The effects of the disease are
confronting, so we decided our message
should be as well. ‘Give prostate cancer
the finger’ seeks to directly address
the inhibitions men have to having
a digital rectal examination (or DRE) –
the physical examination required to
check for prostate abnormalities.”
Graeme says key supporters such
as PlaceMakers have embraced the
concept and are doing all they can
to communicate the message and
raise money for the foundation, which
promotes awareness of the disease,
supports those diagnosed, and helps
fund research on diagnosis and
treatment options. Increasing awareness
is a key focus for the foundation, as
early detection leads to better outcomes.
“For the seventh year in a row,
PlaceMakers has played a key part in
our annual awareness campaign,” says
Graeme. “I’d like to say a massive
thank you to staff and customers for
supporting the cause around the country.
From quiz nights, to scooter challenges,
to BBQs, the types of events vary
dramatically, but the support is consistent.
“It’s incredible to see how many of our
builders come out to these events,” says
Gary Woodhouse, PlaceMakers general
manager operations and marketing.
“Their commitment is admirable. As well
as supporting such a good cause, it
helps strengthen a sense of community
and the support inherent within that.
“We strongly encourage all men
over 40 – employees and customers
alike – to get checked!”
You might not agree with what they say,
but because of how liability is dealt
with now, you really need to make sure
you’ve got it right!
Now have your say...
WHAT INDUSTRY CHANGES DO YOU HOPE TO SEE IN 2016?
ANSWER THIS QUESTION TO ENTER OUR QUARTERLY PRIZE DRAW
Email your answer with your full name, contact phone number, company name, number of full-time staff and the city or
town in which you’re based to editor@pmundersconstruction.co.nz. All responses must be submitted by 25 December.
The answers to this question will be published in Under Construction February 2016.
4
PlaceMakers Pakuranga staff had a busy Blue September decorating the store, hosting a morning tea and planning a battle of the BBQs. Overall the team raised more than $8,000!
The PlaceMakers Wairau Park team put their hair on the line to raise money for Blue September
PlaceMakers Clarence Street employees held a number of Blue September events, including a dress-up day and ‘Shoot the Boss’ opportunity!
5
NEWS
COMMUNITY FOCUS
Building a better future
who benefit from better educated
teachers, and their communities.”
They recently returned from
another trip, where they spent
time teaching locals how to install
roofs on earthbag structures.
Earthbags provide a cheap, earthquake-resistant building technique
particularly in Nepal where the people
are renowned for their friendliness.
“Volunteers bring phenomenal motivation
to community projects and, when the
locals see people from all across the
globe working to help them, it can act
as a catalyst to further motivate them
to rebuild,” she says. “In addition, our
accommodation is normally communal
spaces shared with the other volunteers.
You make a lot of friends and, at the
end of it, they almost become like your
family.”
Volunteering your building skills can leave a lasting legacy
Builders’ skills in hot demand to help improve quality of life for Nepalese families
M
ore than 9,000 people
were killed and hundreds of
thousands left without homes,
following two devastating earthquakes in
Nepal earlier this year.
Having developed a connection with
the country after various trips to Mt
Everest basecamp, PlaceMakers
Wanaka customer Mark Ayre wanted
to do something to help. Mark and
New Zealand-based Adventure
Consultants, which operates climbing
expeditions in Nepal, came up with
the idea of exporting Kiwi builders
to the quake-stricken country to
help with the recovery process.
The first step was to connect with
All Hands Volunteers, an American6
based non-profit organisation working
to rebuild homes and schools. All
Hands are involved in a number of
projects, including reconstructing five
schools in the Nuwakot district and 50
homes in the Sindhupalchok district.
ALL HANDS ON DECK
All Hands partnerships manager
Michelle Thompson says that more
than 600 volunteers have offered their
services since work began in April.
“Our focus as an organisation is
to connect people who want to
help, and remove the barriers to
volunteering,” explains Michelle. “We
cover all of their living costs while
they’re working here; they just need
to pay for their own flights.”
To ensure each job is completed as
efficiently as possible, the organisation
only accepts volunteers as required.
“We provide some training and quite
often we’ll ask our volunteers to lead
teams, which can be made up of
locals and other volunteers. At the
moment, people with experience
in construction and project
management are in high demand.”
She says people can choose to help for
as long as they like, with their placement
depending on what stage a project is at
and their relevant experience.
“Anyone interested in volunteering
just needs to jump on our website
and fill in an application form. We
send them an info pack, which
advises them about visas, vaccines,
and what they should bring, as
well other important information.
“At the moment, the days are really
warm, but it can be quite cold
in the morning and at night.”
Teams generally work six days
a week, using materials such as
wire mesh and corrugated iron
to build homes and schools.
INVESTING IN EDUCATION
Because of the poverty that affects
Nepal, education is critical to help
the country’s young people create
a better future for themselves.
EXPERIENCE OF A LIFETIME
Michelle says that volunteering is
a hugely rewarding experience,
Someone who knows that first-hand is
Cam Court, a PlaceMakers customer
and director of Auckland-based
building company Court Construction.
Cam and his wife Tracey developed
an affinity with the Nepalese during
trekking trips through the country,
which has led them to get involved in
a number of community initiatives.
Michelle says that volunteering
is a hugely rewarding
experience, particularly in
Nepal where the people are
renowned for their friendliness
“We just gravitated towards the country,”
Cam says. “Despite having nothing, it
has some of the most amazingly friendly
and generous people we’ve ever met.”
Last year, the couple teamed up
with First Steps Himalaya – a New
Zealand-based charity working to
give Himalayan children access to
quality schooling – to raise money for
an education and training centre.
Together with 11 other volunteers,
including seven of their own builders,
Cam and Tracey went back to Nepal
in March to build the centre.
“At the moment, lack of education
results in a cycle of poverty with
poorly educated children, growing
up to become parents who know
no other way,” says Cam. “We
hope this type of project will help
transform the lives of the children
Earthbags (literally bags filled
with earth) are commonly used
in Nepal and are well suited to
community projects, because they’re
earthquake resistant and this unique,
eco-friendly method of construction
can be created quickly from readily
available components at a low cost.
TOP TIPS
Cam says that anyone going should
be prepared to live in tough conditions,
and also has some practical advice
for any builders keen to help.
“You can source some materials locally,
such as timber and iron, but you can’t
really buy fixings,” he says. “We’ve
taken our own tech screws and nails
both times. There’s no power, so
we also took our own saws – you
have to do everything by hand.”
Unless you like cold showers
every day, he also recommends
taking a solar shower!
About All Hands
In its tenth year, All Hands has
completed 57 projects worldwide,
with over 31,000 volunteers
of 85 different nationalities,
40,000 families assisted, and
1,000,000 hours worked. In the
process, we have developed
an expertise in both project
and volunteer management.
Anyone interested in
lending a hand should
visit All Hands’ website at
http://hands.org/volunteer/,
and select the Nepal
Earthquake Rebuild project.
7
NEWS
PRODUCT NEWS
New brochure
in-store now
Paving perfection
With our laundry tubs built in New Zealand,
our tapware tested and assembled here too,
you can have peace of mind that
our products on your next project have
a Kiwi company backing them
SALUTO
LATINO
KLENSSA PLUS
The simple, compatible paving dimensions mean your client can easily create expressive and unique patterns
Firth Designer Series pavers created for easy installation and a high-end outdoor transformation
T
he basic function of residential
pavements, such as driveways,
paths and patios, is to provide safe,
easy access onto or around a property.
However, Firth’s new Designer Series
premium paving range offers more
than access – its larger format and
lighter colours reflect the global trend in
residential paving, adding style and visual
appeal to outdoor areas.
This new, affordably priced range will
excite homeowners looking for an
exceptional, high-end tile-look finish
backed by tried-and-trusted Firth concrete
durability. The simple, compatible
paving dimensions and consistent 50mm
depths allow your client to easily create
expressive and unique patterns for paths,
patios and other outdoor living spaces.
Improved density ensures smoother,
more compact surfaces, while new
spacer nibs on the sides reduce spalling
and support even spacing. See the
new brochure in-store or online for
a full range of colours and designs.
Available to order now.
8
pavers, blend from various pallets to
mitigate any colour variation that may
occur.
To get the best results when paving,
here are some top tips to keep in mind:
•
•
Ensure surface water is directed
away from buildings.
•
All pavers require some form of edge
restraint, kerb or haunching to prevent
lateral movement.
•
It is best to use darker colours for
driveways as tyre marks will not be as
visible.
•
Consider sealing your paving to help
prevent the absorption of dirt and
stains.
A good sound basecourse is critical for
the long term performance of paving.
•
Keep the surface of the pavers clean
whilst laying.
•
Firth concrete pavers are made from
locally sourced, natural materials.
When laying more than one pallet of
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REGULATION
MBIE BUILDING & HOUSING
Using Schedule 1 exemptions
retaining wall, is still relatively complex.
EXISTING BUILDINGS:
ADDITIONS AND ALTERATIONS
WHAT’S INCLUDED?
Below are the general headings in
8. Windows and exterior doorways in
Schedule 1’s list of exempt work. If
existing dwellings and outbuildings
you’re doing any work in the areas
listed below, check the full guidance to
9. Alteration to existing entrance
see if it is exempt or not. Some of it is
or internal doorway to facilitate
tricky to decipher so, if you’re unsure, it’s
access for persons with disabilities
important to get advice from someone
with the appropriate building knowledge 10. Interior alterations to existing
and expertise, such as your local council.
non-residential building
Just because building work
is exempt doesn’t mean the
work doesn’t require skill, it
just means it doesn’t require
a consent
11. Internal walls and doorways
in existing building
12. Internal linings and finishes
in existing dwelling
13. Thermal insulation
GENERAL
14. Penetrations
1. General repair, maintenance, and replacement
15. Closing in existing veranda
or patio
2. Territorial and regional authority
discretionary exemptions
16. Awnings
23. Tanks and pools
(excluding swimming pools)
24. Decks, platforms, bridges,
boardwalks, etc
25. Signs
26. Height-restriction gantries
27. Temporary storage stacks
28. Private household playground
equipment Network utility operators
or other similar organisations
29. Certain structures owned or controlled
by network utility operators or other
similar organisations
DEMOLITION
30. Demolition of detached building
According to Schedule 1, a building consent is not required for work on decks, platforms, bridges, boardwalks and like structures where it is not possible to fall more than 1.5 metres
Have you been getting consents for low-risk jobs that don’t require them? MBIE reminds builders
to use the expanded list of Schedule 1 exemptions where possible
P
assed in November 2013, the
Building Amendment Act 2013
expanded the range of work not
requiring a building consent. However,
despite the list of minor low-risk jobs
expanding twice in the past two years,
the Rules Reduction Taskforce recently
found that it’s often misunderstood and
underused.
•
Who can carry it out.
•
What other conditions apply.
out by people authorised under the
Plumbers, Gasfitters and Drainlayers
Act, with some exceptions.
The scope of building work covered by
• The third part covers building
Schedule 1 doesn't vary greatly from the
work which has been designed
or reviewed by a chartered
previous version (which was amended
professional engineer.
in December 2010). However, it has
a new numbering system and has been
divided into three parts depending on
EXEMPT – NOT EASY
who can carry out the building work.
To ensure Under Construction readers
Part 1 Exempted building work lists
understand what’s included, we’ve
work that anyone can carry out.
included a reminder for this month’s article. Exempt building work is listed
However, just because building work is
in Schedule 1 of the Act, which
exempt doesn’t mean the work doesn’t
has been split into three parts to
SCHEDULE 1
require skill, it just means it doesn’t
make it easier to navigate.
Schedule 1 was amended with the
require a consent, which should speed
intent of making exemptions easier
things up for the homeowner. Also,
• The first part lists exempt building
to use. A new section (section 42A
exempt building work is not restricted
work with no limitations on who
of the Building Act) was added
building work, so it doesn’t trigger
designs or carries out the work.
the LBP requirement. However, many
to the Building Act to clarify:
homeowners may choose to employ
• The second part deals with
an LBP as exempt work, such as
• What type of building work
is exempt from requiring
exempt sanitary plumbing and
designing a 1.5m-high deck with fancy
a building consent.
drainlaying, which must be carried
balustrades or building a 2.99m-high
10
www.mbie.govt.nz
17. Porches and verandas
3. Single-storey detached
buildings not exceeding 10
square metres in floor area
31. Removal of building element
NOTE: All building work, whether
exempted or consented, must
comply with the Building Code
18. Carports
Guidance
19. Shade sails
4. Unoccupied detached buildings
OTHER STRUCTURES
For more details about the
Building Amendment Act 2013
and to read the exempt building
work for yourself, go to http://
5. Tents, marquees, and similar
lightweight structures
20. Retaining walls
6. Pergolas
21. Fences and hoardings
www.dbh.govt.nz/building-
7. Repair or replacement of
outbuilding
22. Dams
(excluding large dams)
you can download a fact sheet
or read key information.
amendment-act-2013, where
Tick the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning
rather than just ‘participation’ is a key requirement of the LBP renewal process.
1) Who can carry out exempted building
work?
2) Why is some building work exempt from
requiring a building consent?
3) Is all general repair and maintenance
exempt from consent?
a) Anyone.
a) Because it’s easy.
b) Only LBPs.
b) Because it’s considered low risk.
a) No, there are exceptions that should be
reviewed in the guidance document.
c)
c)
Only homeowners.
Because there aren’t enough consents to
go round.
b) Yes.
c)
No, only for houses built before 1960.
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.
11
TECHNICAL
BRANZ
Bringing back the bevel
Figure 3b: Erecting the wall first
Figure 2: Correct fixing location
Special offer on BRANZ Good Repair Guide
Receive 30% off Good Repair Guide
There are sixteen titles in this essential Good
Repair Guide series, which are now available
in electronic or hard copy format. Presented
as a box set or individual titles, these Repair
Figure 1: Bevel-back weatherboards were popular in the 1920
Guides are packed with easy-to-read drawings and photos. They
provide useful information for the DIY homeowner and building
professional with practical hands-on advice on how to repair and
Bevel-back weatherboards are back in vogue, but there’s a lack of experienced installers.
This has led to some poor installations, so here are the key pointers to getting it right
B
evel-back timber weatherboards
have been used on New Zealand
buildings for more than 150 years.
The first boards were simply square
inch-thick planks that were installed
horizontally, with the upper board
overlapping the lower.
In the intervening years, the boards
acquired the profile we see today, but in
essence, they have changed very little.
RETURN OF BEVEL-BACK
WEATHERBOARDS
As is common with many claddings,
there have been periods when
the bevel-back timber weatherboard
was popular, like the 1920s (see
Figure 1) and 1940–50s, before
fading from popularity.
Since the leaky building crisis,
there has been a marked
12
www.branz.co.nz
resurgence in the popularity of
bevel-back timber weatherboards,
particularly when installed over
a drained and vented cavity.
INEXPERIENCE LEADS TO
POOR INSTALLATION
This resurgence has highlighted
a shortage of tradespeople
experienced in bevel-back timber
weatherboard installation. Recent
issues with installation include:
•
Not effectively sealing cut ends,
notches and holes in boards.
•
Double nailing of timber boards.
•
Poor-quality cutting of mitres to
external corners and omitting
soakers or backflashings or
mitre joints opening up as
a result of timber movement.
•
Incorrect installation sequence
at internal corners.
•
Sealing of the board laps – this
is not recommended as it
restricts drainage and drying.
THE CORRECT METHOD
Figure 2 gives the correct fixing
location. This is a single nail to each
board located just above the lap.
Guidance for the installation of
timber weatherboards is given
in E2/AS1 section 9.4 and in the
following BRANZ publications:
•
Good Practice Guide: Timber
Cladding (3rd edition)
•
House Building Guide (3rd edition)
•
Renovate: Bungalows
maintain common problems in New Zealand homes.
Book box set $336 + $8p&p I Books $21 + $8p&p I Book $18
Figure 3b: Interleaved corner
Visit branz.nz/grg or call 0800 80 80 85 (Press2) and use
promo code GRGPM (offer expires 31 December 2015. Discount
excludes ebooks)
Attention! Are you a building contractor who pays levy fees through a consent authority? If so, then you are entitled to a free
subscription od BULID magazine from BRANZ. Simply email publications@branz.co.nz to check that you meet the required criteria
and get your subscription.
Tick the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning
rather than just ‘participation’ is a key requirement of the LBP renewal process.
4) What is NOT an issue seen recently
with the installation of bevel-back
weatherboards?
a) Double nailing of timber boards.
b) Incorrect installation sequence at internal
corners.
c)
5) What led to the resurgence of
bevel-backed weatherboards?
6) What is the minimum required lap?
(answer in diagrams)
a) Fire safety rules.
a) 32mm.
b) The leaky building crisis.
b) 16mm.
c)
c)
Earthquake-strengthening regulations.
8mm.
Horizontally installed planks, with an
overlap.
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.
13
NEWS
INDUSTRY FOCUS
Building consents rise despite volatility
Construction Contracts Act amended
Auckland and Canterbury combined account for more than 50% of new dwelling consents
in September
Commercial contractors and subcontractors’ retention payments to be held in trust
S
tatistics New Zealand’s latest
data shows that 2,242 new
dwellings were consented in
September, including 1,781 homes and
109 apartments.
Seasonally adjusted, the number of
new dwellings consented fell 5.7%,
following a 5.3% fall in August. For
homes only, it rose 1.5% on the
back of a 2.6% drop in August.
Building and Housing Minister
Dr Nick Smith said the new law
will benefit tens of thousands of
small subcontracting businesses,
such as plumbers, electricians,
plasterers, tilers and painters.
The trend for the number of new
dwellings consented is at its highest
level since November 2004.
Statistics New Zealand’s business
indications manager Clara Eatherley
said that, overall, new building
consents are on the up.
“While we see a bit of volatility from
month to month, the overall picture
recently has been growth in building
consents, both on the residential and
non-residential sides,” Ms Eatherley said.
IN THE REGIONS
In September, nine of the 16
regions consented more dwellings
than in September 2014.
The regions with the biggest increases
were Waikato (up 158 to 320; +98%),
Auckland (up 106 to 643; +20%) and
Bay of Plenty (up 72 to 188; +62%).
Other regions to record an increase
were Gisborne, Hawke’s Bay, Northland,
Southland, Taranaki and Tasman.
“In the regions surrounding Auckland,
growth is being driven by new
houses, while in Auckland itself,
apartments are also a big part of
the picture,” Ms Eatherley said.
Wellington (down 67 to 126; -35%),
Canterbury (down 54 to 525; -9%) and
Nelson (down 16 to 19; -46%) recorded
the largest decreases. Manawatu14
C
ommercial contractors and
subcontractors across the country
are set to benefit from the
passage of the Construction Contracts
Amendment Bill on October 30, with
changes to be progressively introduced
from the start of December.
The trend for the number of new dwellings consented appears to be increasing across the country, except in Wellington
Wanganui, Marlborough, Otago and
the West Coast were the other regions
to consent fewer dwellings in September
compared to the same month last year.
Despite the decrease, Canterbury still
accounted for nearly a quarter of that
national total, and, when combined with
Auckland, the two regions accounted
for 52% of the national total.
The trend for the number of new
dwellings consented is at its
highest since November 2004
The trend for the number of new
dwellings consented is at its highest
level since December 2004 in
Auckland, while it appears to have
stabilised in Canterbury after falling
10% from its August 2014 peak.
The trend appears to be increasing
across the rest of the country except
in Wellington, where it has been in
a slow decline since February.
The value of non-residential building
work consented in September was
$619 million, up $134 million (28%)
compared to September 2014.
CONSENT VALUES
TOTAL $1.5 BILLION
The total value of building work
consented in September 2015 was
$1.5 billion – comprising $911
million of residential work, and $619
million of non-residential work.
For the year ended September
2015, compared with the September
2014 year, the value of
building consents increased for:
•
All buildings – up $1.7bn
(12%) to $16bn.
•
Residential buildings –
up $945m (10%) to $10bn.
•
Non-residential buildings –
up $755m (15%) to $5.7bn.
“It will require that retentions money,
which could previously be put at risk
by the main contractor and used as
working capital, be held in trust and
given priority in the event of a business
failure,” Dr Smith said. “It means
the people who do the bulk of the
physical work on building projects
get properly paid for their labour.”
The issue of retention money being
misspent was highlighted by the collapse
of construction company Mainzeal in
2013, which saw various subcontractors
lose an estimated $18 million. The
changes only apply to commercial
construction contracts entered into or
renewed on or after 31 March, 2017. It’s
important to note that varying a contract
does not constitute a renewal.
Parties holding retention monies must
also keep proper accounts that
correctly record all dealings and
transactions in relation to the money. Yet
to be developed regulations will specify
a list of acceptable accounting methods.
RESIDENTIAL IMPACT
The new Act was also updated to
cover residential construction contracts,
with the exception of charging
orders (and retentions, which only
apply to commercial construction
contracts). This gives parties to
residential contracts full equal access
to the Act’s dispute resolution and
payment regimes, which has also been
amended, from 1 December 2015.
Changes to adjudication and
enforcement, around timeframes
and prescribed forms, also come
into effect from 1 December.
The scope of the Act has also
been widened to include
construction-related services, such
as work done by architects,
engineers and quantity surveyors.
From 1 September 2016, these
professions will also be able to
access the payment and dispute
resolution processes in the Act.
“Meanwhile, consumers will have
greater means to hold architects,
engineers, and quantity surveyors to
account for their work,” said Dr Smith.
“New Zealand is on the cusp of
a building boom, which is projected to
reach unprecedented levels in the next
few years. This new construction law is
about underpinning this strong growth
with improved standards of business and
building practice.”
Government to review urban planning rules
The Productivity Commission will undertake a first principles review of the urban planning rules,
with its findings expected to be released late next year
F
inance Minister Bill English says
the Government has asked the
Productivity Commission to review
urban planning rules and processes, and
identify the most appropriate system for
land use allocation.
The Productivity Commission will
undertake a first principles review of
the urban planning rules that fall under
acts such as the Local Government
Act, the Resource Management
Act, and the Land Transport
Management Act, to ensure they
support a responsive housing market.
“Urban planning in New Zealand not
only underpins housing affordability,
but also the productivity of the wider
“The review should look to consider
economy,” Mr English said. “Many
alternative ways of delivering improved
parts of the regime are out-dated and
urban planning and, subsequently,
unwieldy, having been developed
development,” the terms say.
over the years in a piecemeal fashion.
International best practice has moved on, On TV One’s Q+A, Mr English said
and so must New Zealand.”
that the Government has asked the
Productivity Commission to do some
“blue-sky thinking”, but that over the
next three to four years, it needs to
make the current system work.
“There are homebuyers out there, who
would prefer to be able to buy a home
today. The Government is shelling
out tens of millions more to subsidise
accommodation costs in the high-growth
markets, and we’ve got to keep working
with councils to get the number of
houses on the ground up faster.”
The Government’s proposed RMA reform
was put on hold earlier this year.
15
HEALTH&SAFETY
WORKSAFE
Managing overlapping duties
This means that in practice, the measures
a PCBU should take in relation to its
own employees and contractors are
likely to be different from the measures it
should take in relation to the employees
and contractors of another PCBU, as
it will have less influence and control
over the workers of another PCBU.
The extent of a PCBU’s duty
depends on the level of
influence and control the PCBU
has over health and safety
matters at work, and the
different circumstances that
might be at play when there are
multiple PCBUs
A PCBU that has less direct control
and influence is more likely to fulfill its
duty by making an arrangement with
the PCBU that is closer to the work and
has more direct influence and control.
Many modern work situations involve multiple duty holders with overlapping duties
With the Health and Safety at Work Act coming into effect in April next year, it’s important you
understand your responsibilities under the new laws. In this two-part series, we’ll examine who
is responsible when two or more PCBUs duties overlap
B
ecause a person conducting
a business or undertaking (PCBU)
has duties to all workers affected
by their work, not just to those they
employ, it’s possible for PCBUs to have
overlapping duties. This is a fundamental
part of the Act’s design.
Many modern work situations involve
multiple duty holders with overlapping
duties. For example, there may be
a number of different businesses
working together or alongside each
other on a single work site, such
as a construction site, and through
contracting or supply chains.
The previous Act created and provided
16
www.worksafe.govt.nz
for such overlapping duties, so
the need for duty holders to work
together to meet their duties is not
new – it’s just more explicit in the
new Act, and many workplaces will
already be taking this approach.
and coordinate activities to meet
their shared responsibilities.
The Act also makes it clear that PCBUs
need to collaborate to meet their duties
and ensure that the work does not place
people’s health and safety at risk.
PCBUs cannot ‘contract out’ of their
duty. However, they can and should
make reasonable arrangements and
coordinate responsibilities with the other
PCBUs to fulfill their duty – so far as
is reasonably practicable. The PCBUs
should also monitor each other to ensure
everyone is doing what was agreed.
HOW SHOULD PCBUS
WORK TOGETHER?
Overlapping duties do not
automatically require PCBUs to
duplicate efforts. Instead, PCBUs
will need to consult, cooperate,
The extent of a PCBU’s duty depends
on the level of influence and control
the PCBU has over health and safety
matters at work, and the different
circumstances that might be at play
when there are multiple PCBUs.
EXAMPLE 1: OVERLAPPING
DUTIES IN LABOUR HIRE
A labour-hire PCBU contracts out
a worker to a host PCBU. Both the labour
hire PCBU and the host PCBU owe
a duty of care to that worker – both are
fully responsible for meeting that duty to
the extent to which they have capacity
to influence and control the matter. The
labour hire PCBU cannot ‘contract
out’ its duties to that host employer
when it places a worker with them.
Both PCBUs need to consult and
co-ordinate activities to ensure the
health and safety of the
labour hire worker.
EXAMPLE 2: OVERLAPPING
DUTIES ON A LARGE
CONSTRUCTION SITE
A large construction site has many
PCBUs present: the head contractor,
the subcontractors, and the client.
While all of these PCBUs have
overlapping duties, the measures
that they can take to discharge
those duties will differ.
The client will typically owe duties
to the workers that they influence
or direct through any requirements
they include in their contract with
the principal contractor that will
affect the health and safety of those
workers. If a client requires that
work be performed in a certain way
or in a certain time, that may affect
the health and safety of workers.
The subcontractors will also have a duty
to the workers that work for them.
The head contractor and the
subcontractor should consult each
other about the job requirements, the
skills required of the workers, any
health and safety risks associated
with the work, and what each
will do to control the risks.
Subcontractors will have a duty to each
other’s workers, even where they do not
have a direct contractual relationship
with them. For example, the activities
of a scaffolding PCBU can affect
the safety of other workers on site.
The PCBUs can make arrangements with
the other PCBUs on the site where they
have overlapping duties. In this case, the
head contractor and subcontractor have
to ensure access to first aid facilities.
The PCBUs can make
arrangements with the other
PCBUs on the site where they
have overlapping duties
The head contractor will have a duty
to the workers that work for them.
The head contractor will also have
a duty to the workers on the site
that it influences or directs. This is
because the head contractor usually
determines the sequencing of work
and sets work methods, equipment
and other site requirements that
may affect all the workers on site –
even those who aren’t employed
by the head contractor directly.
It’s likely the head contractor will
provide those facilities for all workers
on site, but the subcontractor must
confirm they’re in place and accessible
to their own workers as well. The head
contractor would also usually provide
security for the site as a whole.
Tick the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning
rather than just ‘participation’ is a key requirement of the LBP renewal process.
7) When a labourer is contracted out, who
holds the duty of care?
8) Who is usually responsible for providing
security for the whole site?
a) The labour hire company.
a) The head contractor.
b) The PCBU contracting the labourer.
b) Subcontractors.
c)
c)
Both.
Individual workers.
9) How can a PCBU with little direct control
or influence on health and safety fulfill its duties?
a) Contract its duties out.
b) Make an arrangement with a PCBU that is
closer to the work.
c)
They won’t have any duties under the
new Act.
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.
17
TRAINING
BCITO
Sustaining the workforce
Currently, just under 3% of BCITO’s active apprentices are women
our current workforce capability,
we are building 15,000 homes.
In 2014, there were 155,200 people
employed in the construction industry
sectors covered by BCITO. By 2019,
this is forecast to climb on average
by almost 5% per year to 197,300.
Capability and capacity of the
current workforce will struggle
to meet future demand
do not attain a post-secondary
qualification of any kind.
KEY POINTS
•
Growth is set to continue
but negative pressures in
some regions exists.
•
Government will use policy settings
to free up market conditions
and stimulate some activity.
•
Capability and capacity of the
current workforce will struggle
to meet future demand.
•
Growing demand in Auckland
may require increasing numbers
of the workforce to move from
locations throughout NZ.
•
Consideration of sustainability,
as a workforce development
driver, will deepen.
Ambience Tiling business owners John and Janet Turner (far left and far right) are looking forward to using BCITO’s SWDF plan to strategically manage the development of their workforce.
They are both pictured here with their team of recently qualified tilers
BCITO launches strategy to better manage workforce development
I
influence and realistically change.
n a bid to help construction industry
businesses and employers better
The SWDF identifies four priorities
manage the development of their
for action that can be used to help
workforce, BCITO has developed
participants plan and strategically
a Strategic Workforce Development
manage the development of
Framework (SWDF). The plan was
their building and construction
officially launched by Dr Nick Smith
workforce. These priorities are:
at the BCITO Skills Summit held in
Wellington in October, with more than
• Build an accurate picture of the
100 BCITO national advisory group
current skills and capabilities of
members, board members and other key
stakeholders from associated federations,
each industry sector’s workforce.
associations and government bodies in
attendance.
• Identify future requirements
for each workforce and the
The SWDF aims to educate the industry
outcomes they wish to achieve.
on preparing to meet predicted
skills shortages. The industry’s
• Develop strategies to address
participants need to address the
any gaps between the workforce
and desired outcomes.
factors that each employer can most
18
www.bcito.org.nz
•
THE CONSTRUCTION
INDUSTRY WORKFORCE
Consider and understand the
overall impact of business strategies
on workforce development.
Industry needs to actively
work to attract people into the
industry and make sure they
understand that construction
offers a career – not just a job
These priorities and the catalyst
for developing the framework
are covered below:
CONSTRUCTION ACTIVITY
National demand for new houses in
2017 is forecast to be 28,000. With
•
The average age of people in
the construction industry is 42,
which is increasing much faster
than the rest of the population.
•
Increasing cultural diversity in
New Zealand means strategic
employers cast a wide net
in respect to recruitment.
•
Just under 3% of BCITO’s active
apprentices are women.
•
A project-driven ‘hire-andfire’ business cycle causes
some skilled workers to leave
the industry permanently.
•
40% of workers in the industry
•
The industry’s skilled
workforce is aging quickly
and exiting the industry.
•
The industry is recruiting from
a shrinking pool of people.
•
Greater workforce diversity
is required to meet
labour requirements.
•
The current rate of industry
training does not match demand.
•
Skills demand will
continue to develop.
•
Industry training needs to align
with workforce development.
•
Industry needs to actively work
to attract people into the industry
and to keep them for a longer
period of time and make sure that
people understand that construction
offers a career – not just a job.
To read BCITO’s Strategic Workforce
Development Framework and find out
how it can assist you to build your
People Plan, visit
BCITO.org.nz/news-andpublications/strategy-documents.
This initial document is just the
first step in an ongoing process
to help skills-proof our industry.
In the next phase, BCITO will
engage you with a sector-specific
plan for your particular trade.
This will happen in the first half
of 2016.
19
TIPS
CROWE HORWATH
Buying a business
parties on the final selling price, but
due diligence reports provide a good
starting point for negotiations.
by shareholders, then this must be
repaid either by the shareholder or from
proceeds of the sale of the business.
DO THE DUE
Due diligence is all about cutting
through the sales pitch and bluster. It
provides a degree of certainty about
what you’re buying, and what to
expect once the transaction is complete.
It also supports a closer working
relationship between the buyer and
seller throughout the negotiation period.
As a result, most owners are more
than happy to provide the required
information for this process. Be
particularly wary of anyone selling
a business, who is reluctant to provide
information requested for a due
diligence report. This should be seen
as an immediate ‘red flag’, and an
indication that particular business
opportunity might be best left alone.
Another point regarding debts is that any
shareholder loan accounts (money owed
to/from the shareholder by the company)
will need to be repaid, unless you
come to an agreement with the seller.
Usually, the amount will be incorporated
into the business’ purchase price.
Buying a business is a big decision – make sure you do all your due diligence before finalising the deal
Business growth is an important consideration for those who aspire to ‘get off the tools’, but the
days of doing deals on a handshake are long gone. This month, we focus on a couple of key
points to keep in mind when buying a business
I
n the May issue of Under Construction,
we provided information on how
to grow a business, including the
risks and rewards associated with
acquisition. This time, we outline some of
the key things to watch for and provide
a general overview of what you need to
know before finalising any deal.
PAPERWORK, PAPERWORK,
PAPERWORK
Obviously, for a transaction of such
a large size, it is important to work
closely with your lawyer and the seller to
ensure the business’ sale and purchase
agreement is fully documented.
It’s also particularly important to
20
www.crowehorwath.co.nz/locations
document how any debts and potential
issues relevant to the business will be
handled. There needs to be a clear
agreement in place on how defect
periods and potential liabilities for
works undertaken by the previous
owner/s are handled. If this isn’t done
properly then you, as the new business
owner, could be left responsible for
any outstanding bills. Furthermore, your
name could potentially be tarnished by
work done under the previous owner/s.
When it comes to the required
paperwork, consider this: no one would
ever buy a house or enter into a job
without a formal contract. So why would
you consider buying a business without
having the proper paperwork in place?
KNOWN AND UNKNOWN DEBTS
Any known liabilities in the business’
financial statements are still held
by ‘the business’, therefore, these will
need to be taken into consideration.
These are debts owed by the business,
not the owners. For that reason,
performing due diligence in conjunction
with your accountant is crucial.
They can help you to identify both
known and potential liabilities, and
will provide a written report detailing
their professional opinion of the
business and its value. Usually, there
will be give and take between both
However, if you are buying
a majority share (ie, more than 50%
of the business), there may be another
agreement in place – such as the
previous owners loan account being
paid off over time, or that the account
remains in place due to their ownership
interest in the company. On the other
hand, if the business is owed money
Due diligence is all about
cutting through the sales
pitch and bluster. It provides
a degree of certainty about
what you’re buying, and what
to expect once the transaction is
complete
PITFALLS
In our May article, we discussed the
potential issues that can occur with
an acquisition. Most notably: buying
an underperforming business, where
turnover was inflated by a one-off
transaction and has systems that are
incompatible with your own. These
issues further reinforce the need to do
your homework via the due diligence
process, so that a business’ financial and
general operations are fully understood.
DON’T FORGET THE STAFF
Another issue to be aware of is the
business’ ‘culture’. While this can often
be viewed as a buzzword, the fact
remains that if your new employees do
not work well with existing staff, then the
disruptions that could cause are immense.
While you cannot be sure that
these issues won’t arise before
buying a business, a considerable
amount of time and effort can be
spent trying to identify and resolve
these sorts of issues if they do.
Taking the time to make sure that all
employees are well looked after is
arguably just as important as ensuring
that you keep the financial performance
of the newly acquired business intact.
If you have questions about how to
acquire a business, or you would
like to discuss any of the points
raised in this article, please contact
Peter van der Heijden at peter.
vdh@crowehorwath.co.nz; or your
local Crowe Horwath advisor.
For example, is a key employee
due to retire in the next 12 months?
Is a key contract about to lapse and
not be renewed? These sorts of
situations need to be identified
in advance, as they could have
a significant impact on the longterm value and performance of
a business. Having a thorough
understanding of the potential of
the business is critical for success.
Contact
For the contact details of your local
office, please visit
www.crowehorwath.co.nz/
locations
or telephone 0800 494 569.
Tick the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning
rather than just ‘participation’ is a key requirement of the LBP renewal process.
10) During a sale process, who holds liabilities
in a business’ financial statements?
11) What is NOT a pitfall listed in the article?
a) The outgoing owner.
a) A key employee leaving the business
within 12 months.
b) The business.
b) A key contract lapsing.
c)
c)
They’re wiped once a sale is completed.
A key employee remaining to complete a
key contract.
12) What should be seen as an immediate
‘red flag’?
a) An owner unwilling to provide information
required for a due diligence report.
b) A business with a history of completing
jobs behind schedule.
c)
A business with no debt and high turnover.
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.
21
TIPS
THE SUCCESSFUL BUILDER
What makes a millionaire builder?
Because owning your own business
means that you need to think
much further ahead than you did
Not all business owners go on
to become millionaires, but
those who do seem to have at
least one thing in common –
they make the effort to plan
well ahead, for at least a year
Millionaires are good at planning in advance and arranging immediate tasks in light of their long-term plans
Most builders I meet would love to become millionaires – and some get there. You’ve heard
the expression ‘failing to plan is planning to fail’; could it be that millionaires plan better than
others?
I
t’s not that simple, everyone plans –
it’s just the time scale they plan on is
different.
EMPLOYEES (OFTEN)
PLAN FOR A DAY
Often, those who work for a boss
don’t have to concern themselves too
much with the business’ long-term
goals – they have a plan for the day
and, as long as they complete the
work required, they can head home
and not think any more about it.
Not all employees take that approach,
particularly those who are looking
to move up, but usually a perk of
being an employee is you’re able to
concentrate solely on the task at hand.
MANAGERS PLAN FOR A WEEK
Things change when the employee
22
www.thesuccessfulbuilder.com
becomes a manager. It’s not
quite as easy to get by on daily
planning, and it’s harder to avoid
taking work home with you.
Rather, since they are responsible
for organising work for employees,
managers need to be a step ahead.
They need to plan at least a week in
advance to ensure their employees
have all the direction and resources
necessary for efficient work day by day.
It’s harder to plan a week ahead, and
not every manager succeeds. Have you
ever watched a project manager who
is still acting like an employee? They
spends the day fighting fires, chasing
up late deliveries and subcontractors.
Jobs run late. Materials run short.
Subcontractors can’t turn up and
variation and change orders get
overlooked. Their projects run
overtime and over-budget.
That’s simply because they haven’t
yet learnt to plan far enough
ahead. Successful managers plan
at least a week ahead. Then, when
something goes wrong, they have
time to intervene, resolve the problem
and get the project back on track.
Managers learn to plan further ahead,
and get paid more for doing so.
BUSINESS OWNERS PLAN
FOR THE MONTH
You might think that becoming a business
owner is as simple as getting a client
and working for yourself. It’s easy
to start. But it’s not so easy to finish
well, and a high percentage go back
to working for someone else. Why?
Successful business owners delegate
the urgent (immediate) stuff to their
team of employees and managers.
They know that they need to focus
on the long-term business plan.
The thing about longer term
planning is that it doesn’t need to be
perfect. You can’t predict the future
accurately, so the important part
isn’t the detail, it’s the concept.
And, because the important stuff is
rarely urgent, the business owner
(ideally) gets to take time out to
watch the rugby, take the family on
holiday, go fishing or even play golf!
If being a millionaire is your goal, make
foresight top of mind. Millionaires
don’t necessarily have fewer problems
or better plans than anyone else
(although no doubt it would help),
but they definitely think long-term.
when you were an employee or
a manager. If a manager thinks
ahead a week, then a business owner
thinks at least a month ahead.
However, unlike employees and
managers, business owners (especially
of SMEs) rarely get to check out
completely – there’s always the chance
they may get a call about an urgent
matter they need to deal with.
Things that are urgent are put aside
in favour of things that are important.
Important things are the tasks that
don’t need to be done today, but can
be done tomorrow – eg, updating the
website, or posting on Facebook.
MILLIONAIRES PLAN FOR A YEAR
Not all business owners go on to
become millionaires, but those who
do seem to have at least one thing
in common – they make the effort to
plan well ahead, for at least a year.
However, tomorrow never comes,
so business owners need to
learn to identify important tasks
as urgent and do them now.
And then, once they have the plan in
mind, they arrange their immediate tasks
in light of that longer-term plan. Sure, it
takes time, effort and practice to learn
to do this – but it can be mastered.
They value time and priorities differently.
The work they do today, as a business
owner, may not reap immediate
rewards, but it will bring benefits next
month, or the following month, or
even next year. For example, pricing
a job for next year today makes no
difference to today’s income, but it
makes a difference to future income.
The lifestyle they enjoy today, grows out
of the future they planned yesterday.
As Warren Buffet once said, “Someone
is sitting in the shade today because
someone planted a tree long ago.”
About The Successful Builder
Graeme Owen, based in Auckland, is a builders’ business
coach. Since 2006, he has helped builders get off the tools,
make decent money, and free up time for family, fishing,
and enjoying sports. Get his free ebook: 3 Reasons Builders
Lose Money and How to Fix Them for High Profits at
http://TheSuccessfulBuilder.com.
Tick the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning
rather than just ‘participation’ is a key requirement of the LBP renewal process.
13) Why is delegating important for a business 14) What does the article identify as
owner?
a negative of being a business owner?
a) It leaves more time for golf.
b) It allows them to micro-manage on-site.
c)
It allows them to focus on the business’
long-term plan.
a) It’s harder to separate your personal and
work life.
b) You’re your own boss.
c)
You get to take more time off for fishing.
15) What is identified as a common trait
among millionaires?
a) They plan a week in advance.
b) They plan at least a year ahead.
c)
They all own holiday homes in the
Bahamas.
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.
23
SPONSORSHIP
SPORT NEWS
Paddon’s career enters the fast lane
FREE
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Hayden Paddon and John Kennard are one step closer to achieving their goal of winning a WRC
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he Kiwi rallying duo could
be forgiven for thinking that
Christmas has come two months
early. In October, their three-year, fullchampionship contract with Hyundai was
sandwiched between a fifth-place finish
in France and sixth in Spain – taking
them to eight top-ten finishes this season.
“It's amazing to have the security of the
next few years, in which time we aim to
be at the top,” he said.
SPANISH SHAKE UP
The only mixed-surface event on the
WRC calendar, Spain offered a new test
for Hayden and John, but they tackled it
with confidence and shook up the field
by winning the pre-event shakedown.
They carried that form into the opening
stages, posting several top-five times,
including a joint fastest with Citroen’s
Mads Ostberg (Norway) on Stage 2.
hindered their push for a spot in the top
five. They maintained their position in
seventh, tying with Belgian teammate
Thierry Neuville at the end of the day.
on the mixed surface, and we have
certainly shown improvement on tarmac
compared to this time last year.” (They
finished ninth at last year’s event.)
“We had an okay day in places. Had
it not been for the punctures, things
might have looked very different on the
classification,” Hayden said. “We set
some good times and, other than those
issues, have shown decent improvement
compared to last year.”
The final round of the year, Wales Rally
GB, starting 12 November, presents
Hayden with a big opportunity, as he’ll
take Thierry Neuville’s spot as Hyundai’s
lead driver.
The Kiwis finished strong, edging clear
of Neuville to strengthen their hold on
seventh. They were promoted into sixth
after championship-winner, Sebastien
Ogier (France), crashed out on the
power stage.
“All in all, it’s not been a bad weekend,”
said Hayden. “We made a good start
FOLLOW THE LEADER
The team made the decision to promote
Hayden to help them overhaul Citroen
for second in the WRC Manufacturers’
Championship. Currently they are third,
four points adrift of the French team.
“It’s a rally we have good experience
of and one that reminds me of rallying
at home, in the middle of winter in the
southern forests,” Hayden said.
With no chance for a gravel test, the pair
used their set-up from Rally Australia and
achieved mixed results in the afternoon.
They finished the day in seventh, and
went into the next morning’s day tarmac
stages keen to continue learning
following their success in Corsica.
Frustratingly, two separate punctures
cost them more than 20 seconds and
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The future is bright for Hayden Paddon and John Kennard following a sixth-place finish at Rally Spain, with their
next three years in the WRC secure courtesy of a new contract with Hyundai. Photo: Hyundai Motorsport
DECEMBER 2015
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Pakuranga
Silverdale
Waiheke Island
408 9020
407 4820
431 4236
470 3970
414 0900
237 0020
356 2899
237 0020
420 9150
570 8300
825 0088
538 0200
424 9000
372 0060
Wairau Park
Westgate
444 5155
815 6800
WAIKATO/BAY OF PLENTY
Clarence St, Hamilton
Huntly
Morrinsville
Mt Maunganui
Taupo
Te Kuiti
Te Rapa
Thames
Whakatane
Whitianga
838 0716
828 2000
889 8057
575 4009
376 0220
878 8149
850 0190
868 0130
3060320
867 2000
CENTRAL NORTH ISLAND
Hawera
Hawkes Bay
278 6013
843 5816
New Plymouth
Ohakune
Palmerston North
Wanganui
755 9040
385 8414
353 5777
349 1919
WELLINGTON
Evans Bay
Hutt City
Kaiwharawhara
Kapiti
Levin
Porirua
CHRISTCHURCH
Antigua Street
Cranford Street
Hornby
Riccarton
344 8950
375 4119
344 8950
348 2039
387 8692
568 5042
472 1616
296 1086
366 0960
237 9189
CANTERBURY
Ashburton
Timaru
Twizel
308 9099
687 4035
435 3133
UPPER SOUTH ISLAND
Blenheim
Motueka
Port Nelson
Saxton Rd
520 6030
528 8164
547 9111
547 9111
SOUTHERN
Alexandra
Cromwell
Dunedin
Gore
Invercargill
Oamaru
440 0198
445 9202
466 4609
209 0055
211 0366
433 0460
Queenstown
Te Anau
Wanaka
450 9000
249 7774
443 0080
Products featured may not be available in all stores but
as part of our rain check policy can be ordered in at the
advertised price. Contact your local store for availability.
Consumer Guarantees Act excluded. PlaceMakers Terms
of Trade apply.
Limited stock of this product is available.
Products may not be stocked in all stores,
but can be easily ordered in for you.