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The
ACENZ Advisor MAY 2018
a Member firm, you can request a login here.
CONTRACTS
CCCS and SFA Review Ministry of Education
With the completion of the CCCS Review in November The recent MoU meeting of ACENZ/MinEd/CEAS was
2017, ACENZ circulated a Member Advisory email on 27th March 2018. An issue raised by ACENZ is that
in late January 2018 containing the new CCCS with there is an issue with their CCCS Special Condition 2.2 -
appendix A and B, Short Form Agreement (SFA), Sub- Duty of Care.
Consultant agreement, and a draft agreement for D&C
contracts. Our advice from Aon is that the original clause mirrors
the legal position on Negligence. Generally, a client
We’ve since held four roadshows in Auckland, or third party can bring a claim for loss against a
Wellington, Christchurch and Dunedin to gather professional if that party has been negligent and owed
feedback from Members and highlight the major the plaintiff a Duty of Care.
changes to the CCCS and SFA. Chair of the CCCS
Review Committee, Graham Chapman is currently Clearly a Duty of Care will exist if a consultant has been
revising the SFA based on feedback received as well as engaged. Common law generally states the professional
collaborating with industry stakeholders to release a is not negligent if they have carried out their work to
truly robust document. In addition, we’re working on a the same standard that another reasonably competent
draft form for panel agreements. member of his profession would have met.
AON’s Ross Meijer also participated in the Auckland The amended clause is a slightly stricter requirement
session which was videoed and placed on the website as it compares the work to an ‘experienced consultant’
for members (and clients) to access. You can access the rather than just a ‘reasonably competent’ consultant. We
video on the ACENZ Website (you’ll be prompted to are awaiting further advice.
enter your name and email before viewing).
The June MoU meeting with the Ministry will include
You can always find the most up-to-date version of these NZIA for a conjoint discussion about the ministry
contracts either in the Library or the Members Only forward work programme and various procurement
Library. matters including MBIE progress on a Government
Procurement Model for professional services (together
Documents in the Library (public access) with NZTA & DIA they support a model that emulates
• CCCS CCCS).
• Appendix A
• Appendix B MBIE Procurement Review
• Short Form Agreement
The release of MBIE Tranche Three procurement
Documents in the Members Only Library (just one of guideline covering professional services relevant to our
the many benefits of being an ACENZ Member).: sector does not seem to be imminent.
• Subconsultant SFA
• Special Conditions for D&C We are aware that at the behest of some CCCS public
• Special Conditions for Panel Agreements (coming sector stakeholders, MBIE is participating in a review
soon) towards agreeing common CCCS Special Conditions
• Practice Note P17 – Changes to the Fourth Edition as a sector standard for engagement of professional
of CCCS services. They are considering a set of generic conditions
in addition to any organisation specific conditions.
If you don’t already have access, but you are employed by
The ACENZ Advisor - 1
Producer Statement Issues to their Group explaining the unacceptable liability/
insurance position and requesting that they use the
Kieran Shaw had a meeting with Auckland Council ACENZ SFA contract or we would need to advise
in December. The council had been very intransigent members not to sign their current agreement.
regarding the matter of B2 being incorporated within
ACENZ Producer Statements, but they are now much We heard that this matter has been resolved with use of
more communicative and flexible in positively addressing a standard SFA. We have not had a formal response from
the situation. the Fletcher Group.
Subsequently there has been a follow-up meeting with Wellington City Council -Alternative
AC in March 2018 that was also attended by Ross Producer statement
Meijer (CEAS/Aon). The meeting was very positive
with confirmed AC agreement to continue standard PS1 Member firms are now undertaking the first parapet/
format (with B2 letter – a B2 letter template is available in facade strengthening projects. These are projects initiated
the Members Only Library) and to consider a long term by Minister Nick Smith’s Order in Council to carry out
B2 solution proposed by Adam Thornton for ACENZ that urgent seismic securing works to URM facades in specific
spells out work specific B2 compliance in clearer terms locations (mainly in Wellington but also some other
but outside of the Producer Statement and limited to that locations).
work which can be verified.
The works do not require a Building Consent or Resource
Current PS4 & Construction monitoring process issues Consent (i.e. for heritage considerations). The WCC is
were briefly discussed, but it was agreed that a solution seeking some assurance that the work has been designed
to B2 sign-off covering this activity would be more and carried out in accordance with their adopted
challenging. We have asked AC to respond to ACENZ guidelines. Our existing Producer Statements are not
with realistic expectations for addressing this process so suitable because they relate to a work that is granted a
as to seek acceptable solutions for all parties. Building Consent. However, an ACENZ team believe that
some standardised ‘other’ form of Producer Statement
Responses of other councils relevant to B2 compliance is necessary (and desirable). An initial alternative
issues associated with Producer Statements are fairly draft Producer Statement that covers both the design
muted at present but will not be fully resolved until MBIE and construction monitoring has been proposed with
has endorsed a national approach relevant to this matter. amended wording
A recent MBIE deliberation relevant to these issues has
been completed recently but is not formally released. There is some concern about encouraging a proliferation
of alternative Producer Statements, but the need is seen
There have been recent meetings with BOINZ (Building for a generic alternative PS form for work outside of
Officers Institute) who are also keen to resolve the Building Act/Consent. An ACENZ team is working to
various Producer Statement issues and get consistency develop an agreed standardised format for approval from
in proforma’s and process across the NZ territorial the ACENZ Board and from WCC - who are keen to
authorities. They have undertaken to work with ACENZ progress the matter.
and have asked us to join them in a national program
to inform their members about PS practice and relevant
guidance once we have an agreed solution in Auckland.
Commercial Advisory Group
Our working party comprising of industry legal
Watercare Certificate professionals convened an inaugural meeting in February
(not attended by *representatives). The members include:
There is an ongoing issue with the Watercare certificate • Tristan Meo (Aurecon) Clinton Lawgun (Beca) Julie
of compliance that requires unlimited liability on both Chuor (Opus) Helen Davidson (!Engineering NZ)
firm and by implication the engineer. Prior to an ACENZ • Josie Lewis (Stantec ChCh)
advisory being sent to members, ACENZ Board Member • Sean Garelli (Tonkin & Taylor)
Robert White is liaising with the client to seek a resolution
to the issue. The group of legal professionals saw value for ACENZ
Membership in having such a forum to proactively discuss
Fletcher Residential commercial issues affecting member firms, whilst not
offering a formal legal representation. It was agreed that
In March, Fletcher Residential Division introduced a there would be a rotating Chairperson and the meetings
Short Form Agreement that included two indemnities would be two monthly. Topical issues would be identified
and a ‘fit for purpose’ clause. A communication was sent and circulated for consideration prior to each meeting.
The ACENZ Advisor - 2
Local Government Advisory Group • Safety and access to the regions will be a focus.
• Urban Development Authority is being set up with a
In order to have a regular forum for interface with Local focus on Mass Transit and coastal shipping.
Government to discuss issues relevant to both their sector • PPP’s will continue to be considered as a mechanism
and our member service providers, a new Advisory Group for financing large transport infrastructure.
has been formed to meet quarterly. It was agreed that a • Business Case process is being reviewed.
topic for each meeting will be selected and that a Local • Recognition for the ATAP funding gap was
Government and an ACENZ member will be tasked with highlighted.
preparing a thought piece on a pre-agreed topic. • Let’s Get Welly moving is a focus for government.
• ECl’s being considered again to give comfort to the
It was proposed that the issues of procurement practice or Contracting industry that work will emerge quickly.
industry resource constraints could be considered for the • Local Authority inefficiencies has been highlighted as
next meeting. an area that needs improvement
• New technologies will be a focus as a result of
Representatives that attended the first meeting of this technology disruptions.
group included:
• Dave Adamson (CCC)* Dean Kimpton (AC)* Gary NZTA / ACENZ Liaison Meeting- March
Poole (TCC)* 2018
• Colin Crampton (Wellington Water)* Peter Higgs
(IPWEA) Main items discussed at the meeting were:
• Samantha Gain (IPWEA) Nick Hill (BOINZ) • Safety & Wellbeing - The Agency has appointed Tim
• Peter Silcock (CCNZ) Barry to lead safety initiatives across NZ.
• Susan Freeman-Greene (Engineering NZ) • A Quality Right Group meeting is to be arranged in
order to discuss and determine initiatives to improve
It was debated during the meeting discussion whether quality of project delivery. This is mainly targeted
the group should stick with the same representation as towards design and construction phases.
currently attending that session, or to have equal numbers • Supplier Relationships being reinstated after the
of LG representatives and relevant member firm service transformation.
provider representatives form the core group with • Design Certificates being used as an alternative to
other representatives brought in if the discussion topic Producer Statements. Legal considerations being
demands. investigated.
• Business Case process is being reviewed with a
The meeting determined that the best option would be to Business Case Lessons Learned workshop held with
continue meetings with regular attendance of four each industry representatives. Outcomes to be shared soon.
representatives of local government (as asterisked) and • Principals Agent accreditation roles to be reviewed
suitable ACENZ member firm reps. Other parties could with new thresholds.
be invited to attend as agreed on a case by case meeting • The Liaison meeting was reinforced as critical for
basis. We have acceptance from some member firm industry members to engage with the Transport
leaders to commence the four representative roles - Craig Agency as they were questioning the value of the
Davidson, Ian Fraser, Simon Hatherill and Glen Cornelius meeting.
have already accepted. • Auckland Transport
Transport Contact has been made to reinstate Liaison meetings
now that CEO Shane Ellison has commenced at AT. A
NZ Transport Agency Industry Liaison Meeting March small ATG team will initially meet to agree on how to
2018 strengthen contact with industry. A meeting is to be
arranged with Greg Edmonds of Auckland Transport.
Brief update is below:
• Vanessa Brown is Acting General Manager following Auckland Council
Tommy Parkers departure. Acknowledgment for
Tommy’s contribution to the Agency was noted. There have also been communications with Infrastructure
• The RONS programme is being reduced as a result & Environmental Services to reinstate Liaison meetings.
of the change in Governments focus for transport They have agreed to attend an ACENZ TG meeting
infrastructure around safety and public transport. during 2018.
• The GPS (Government Policy Statement) is expected
end of March/April and will provide direction on
investment for transport infrastructure. One month’s
consultation will follow.
The ACENZ Advisor - 3
Have your say on the Government’s draft Engineers dual role under NZS 3910:2013
Health and Safety at Work Strategy
Under clause 6 of NZS 3910:2013 the engineer is a person
(rather than a company) appointed by the principal. The
The Minister for Workplace Relations and Safety, Hon
engineer has two distinct functions;
Iain Lees-Galloway, is seeking input on the draft Health
and Safety at Work Strategy for the next 10 years from all
1. An agent for the principal. As the principals agent
New Zealanders including businesses and organisations,
the engineer must work in the best interests of
workers, unions, specialists, researchers, whānau and the
the principal, and is authorised to legally bind the
Māori community.
principal. For example, when the engineer receives
payment claims, and issues payment schedules, this
Read the consultation document and find out how to
is explicitly done in their capacity as the principals
submit
agent.
2. An impartial quasi-judicial decision maker. Payment
Submissions are open until 5 pm on 8 June 2018. Your
claims and schedules may be received and issued
submission will support the development of the Health
by the engineer as the principals agent, but this is a
and Safety at Work Strategy and action plans to ensure
distinct function from those claims and schedules
we are focusing on the right areas to get a significant and
being assessed by the engineer. When the engineer
sustained improvement in health and safety across New
assesses the value of the contractor’s payment claims,
Zealand.
he or she must do so as an impartial administrator.
The same standard also applies when making
Regional Workshops decisions, such as approving and valuing variations,
confirming unforeseen physical conditions, and
During May 2018, WorkSafe New Zealand and the granting extensions of time. Further to this, under
Ministry of Business, Innovation and Employment will clause 13.2 of NZS 3910:2013, disputes between
be holding a series of workshops on the draft Strategy the contractor and the principal are referred for an
around the country. engineer’s determination.
The locations and dates for the workshops are: The dual role of the engineer is not without challenge so
• Auckland (South) – Monday 21 May the boundaries need to be well understood. (Item supplied
• Auckland (Central) – Tuesday 22 May by CCNZ in association with Kensington Swan)
• Rotorua – Wednesday 23 May
• Gisborne – Friday 25 May
Memorandum of Understanding
• Christchurch – Monday 28 May
The ACENZ Board has approved two new MoU’s between
Locations, timing and registration for these workshops is
ACENZ and:
available here.
• Civil Contractors NZ (CCNZ)
• Institute of Public Works Engineering Australasia
About the Strategy (IPWEA)
The Strategy seeks a significant improvement in health MoU’s with NZ Institute of Surveyors (NZIS) and
and safety at work by focusing on the things and Building Officers Institute (BOINZ) are currently being
capabilities that will make the biggest impact. New progressed.
Zealand’s level of work-related harm is still high by
international standards. Over the last five years, more
than 250 people were killed and almost 2,000 seriously
injured at work. It is estimated that around 600-900
AWARDS
people die every year from work-related ill health with
many more living with health conditions caused by their 2018 INNOVATE Awards
work. Some population groups are at greater risk of
harm – for example, Māori workers are 44 per cent more The 2018 INNOVATE Awards are currently underway.
likely to be seriously injured at work than the general You can read about all the project submissions online
population. here.
Further Questions Judging is currently underway, and the winners will be
recognised at the Awards of Excellence Gala Dinner on
Please email any questions about the submission process Friday, 3rd August in Hamilton at the Claudlands Event
or workshops to HSWStrategy@mbie.govt.nz Centre. This dinner concludes the annual conference,
The ACENZ Advisor - 4
and some registration types will include a ticket to the 2018 FIDIC Awards
awards dinner (please check your conference registration
if a ticket is included). For those wishing to purchase Nominations for the 2018 FIDIC Awards are now open.
your tickets, they are $165 plus gst per person and can be Firms who are interested in submitting a project can find
purchased online through the conference registration site. more information on the call for nominations here along
with the entry form here.
If you wish to group your attendees at one or multiple
tables, please email your requests to Catherine Chong at It’s important to note that your entry form should be sent
catherine@acenz.org.nz. first to ACENZ as Member Organisation endorsement is
needed to complete your award nomination. Send your
2018 Future Leader Award completed entry form to service@acenz.org.nz
The 2018 Future Leader Award is again proudly Wellington YP Needed!
sponsored by Tonkin + Taylor in partnership with
ACENZ. Nominations close on Wednesday, 23rd May and The Young Professionals Committee in Wellington is
guidelines are available to assist in your application here. looking for one additional member to join the crew!
This is a voluntary position empowering ACENZ YPs to
One winner and up to two finalists will be chosen and help plan future events and provide valuable feedback to
recognised at the Z People Awards Luncheon during ACENZ. If you’re interested in joining, email hmorchat@
conference on Friday, 3rd August in Hamilton. Prizes acenz.org.nz to find out more.
for all three finalists include a complimentary Young
Professional registration to attend conference among
other great opportunities! Don’t miss your opportunity
to be recognised as one of the industry’s top emerging
leaders and apply now!
Deadline of Wednesday, 23rd May 2018!
Get the knowledge and skills needed to succeed with
a Master of Engineering Project Management.
engineering.auckland.ac.nz/mepm
The ACENZ Advisor - 5SMARTER
TOGETHER
CLAUDELANDS EVENTS CENTRE, HAMILTON
REGISTRATION NOW OPEN
EARLY BIRD CLOSES 31 MAY 2018
FEATURING KEYNOTE SPEAKERS
GILBERT ENOKA PETER HILLARY ANDREW PATTERSON
Gilbert Enoka has a long history Peter Hillary comes from one of the great Joining the National Business Review
of success as a mental skills coach families of mountaineering and has a in 2015, Andrew is an experienced
with New Zealand’s corporate and history of world-class achievements in freelance business correspondent and
sporting elite. He is internationally climbing. broadcaster and the host of NBR’s
renowned for his 16-year history Like his father, the late Sir Edmund Hillary, popular weekend podcast Sunday
with the All Blacks, first as their who made the first ascent of Mt Everest Business.
mental skills coach and now as with his climbing partner Tenzing Norgay Andrew has a particular interest in
manager. in 1953, Peter has summited Everest and disruptive innovation, technology,
forged a new route to the South Pole. entrepreneurship, future trends,
The names Everest and Hillary are forever youth engagement, the future of work
linked, and will always be associated with
and business start-ups.
high adventure.
For more information
www.smartertogether2018.co.nz
Enquiries to: ForumPoint2 Conference Partners | T: +64 7 838 1098 | E: conference@fp2.co.nz
THANK YOU TO OUR major conference partners
The ACENZ Advisor - 6The ACENZ Advisor - 7
2018 JOINT CONFERENCE
WITH CCNZ- HAMILTON
The conference recognises the close relationship
between the two associations and the proven benefit of
members working together to build and maintain NZ’s
infrastructure. The fantastic conference programme
reflects that collaboration.
There are opportunities to participate, learn, be inspired
and for industry suppliers to promote their goods and
services. The networking and social events will be a
highlight and give the forum to catch up with old friends
and meet new people.
We have three confirmed keynote speakers:
• Gilbert Enoka (mental performance coach with the
All Blacks)
• Peter Hillary (adventureist)
• Andrew Patterson (futurist)
Along with two panel sessions, concurrent streams, and UPCOMING EVENTS
Minister Phil Twyford as our confirmed MP speaker.
View the full programme n the conference website.
ACENZ EVENTS
In addition to an action packed programme, we’re again
We’d like to keep you informed of upcoming ACENZ
offering discounted Young Professional rates for any
events all across the country. You can always find more
staff employed by an ACENZ Member firm (aged 35 or
information and register for events online on the ACENZ
younger by conference) which includes a complimentary
events page here.
ticket to attend the Young Professionals pre-conference
workshop.
President’s Roadshow
Conference registration is now live and Early Bird • Blenheim Lunch- May 9, 2018
• Nelson - May 9, 2018
Rates close on 31st May! Visit the conference • New Plymouth - May 15, 2018
website to find more information and to register to attend. • Palmerston North - May 16, 2018
Visit the Conference Website here • Napier - May 17, 2018
• Whangarei - May 23, 2018
Members Breakfast with Hon Phil Twyford • Hamilton - June 12, 2018
• Tauranga - June 12, 2018
On May 3rd, ACENZ hosted the Hon Phil Twyford at a • North Shore - June 13, 2018
Wellington Members Breakfast at the Wellington Club. • Wellington - June 21, 2018
With record attendance of over 70 attendees, this was an
incredible opportunity for Members to hear directly from Other events
the Minister for Transport and the Minister for Housing • Auckland- June 14th, 2018 - Members Breakfast with
and Urban Development. Connal Townsend, CEO of Property Council NZ
giving an update on the property sector across NZ
If you missed the breakfast and would like to see the • Auckland - July 10th, 2018 - Young Professionals
Minister’s presentation, we have recorded it for Members Event, Contracts 101
Only. You can view it here, or find the link in the • Wellington - late June - Young Professionals Event
Members Only Library under Other. Remember...any (RSVP hyperlink online soon)
staff employed by an ACENZ Member firm can request • Dunedin - July 3rd, 2018 - Breakfast with Mayor Dave
a Members Only login to gain access to this protected Cull (Mayor of Dunedin) giving a 10 year strategic
content. report on Dunedin’s future. (RSVP hyperlink online
soon).
• Hamilton - August 3rd, 2018 - 2018 ACENZ AGM
The ACENZ Advisor - 8EXTERNAL EVENTS
For further information and registration details please
refer to the ACENZ website External Events page here.
• Hamilton, Christchurch & Tauranga - Speed
Interviews with Engineering New Zealand - May 15-
28, 2018
• Auckland - New Zealand Women’s Leadership
Symposium - June 5-6, 2018
• Nationwide - Strategic Pay Remuneration Briefings -
May 22 - June 14, 2018
• Rotorua - IPWEA NZ Excellence Awards - June 22
2018
• Auckland - Auckland Build 2018 - November 8-9,
2018
• Wellington - IPWEA NZ’s Engineer to the Contract On April 11th, over 200 people rallied together for the
Workshop - November 13-14, 2018 official launch of the Diversity Agenda in Auckland at
• FIDIC Online Contracts Course the Ellen Melville Centre. Attendees heard from keynote
Michelle Dickinson, along with ACENZ President Mike
Kerr, Engineering NZ President Dean Kimpton, and
MEMBERSHIP NZIA President Christina van Bohemen among others.
We gained a lot of Founding Partners and Changemakers
The Diversity Agenda that night and we hope you’ll join us too. Find photos
from the launch event on April 11th below.
Why The Diversity Agenda? It’s time to stand up for a
better gender balance in architecture and engineering. Wellness/Mental Health initiative overview
While other professions have increased their proportion
of women, our industries have remained stubbornly male At the large firm forum meeting late last year there
dominated, especially at senior levels. was an agreement that mental health in the workplace
was a prevalent issue whereby ACENZ could help by
The Diversity Agenda is about driving change in New providing guidance documents and training. In the
Zealand’s engineering and architecture firms. It started ACENZ February Personnel Survey we asked members
as a partnership between Engineering New Zealand, the to nominate a Health and Wellness Ambassadors to
New Zealand Institute of Architects and ACENZ – and disseminate information on health and wellness in the
more than 40 firms have already come on board. Our workplace. We are pleased to say that we currently have
goal is to get 20 percent more women in engineering and 131 Ambassadors appointed by senior managers. If you
architecture roles by 2021. wish to nominate an Ambassador from your firm, please
email Catherine Chong at catherine@ acenz.org.nz.
We’re looking to grow! The Diversity Agenda offers
two ways to joint as either a Founding Partner or ACENZ has also established partnerships with a few key
Changemaker. If you’d like to join as a Founding Partner organisations:
but have concerns over the financial contribution, we’ve • Mental Health Foundation (MHF) - MHF is gathering
got solutions for you! Reach out to Holly Morchat Stanko new information to develop materials relevant to the
at hmorchat@acenz.org.nz to discuss your options. workplace and will be released in June 18. ACENZ
has forwarded the survey onto Ambassadors. MHF
are keen to raise awareness among engineers/
contractors and we will likely partner with us for the
pre-conference workshop.
• Fit For Work provide occupational health therapy
and we are currently in talk to get these services at a
discounted rate for members.
• EAP provide counseling and have agreed to waive
the establishment fee and reduce the one on one
counseling session fee. Members would have to
partner with EAP to allow workers to receive this
service. For details please refer to the Member
Benefits section of our website located in the
members only area.
The ACENZ Advisor - 9• Business NZ have agreed to offer our members a
discount on early bird registration for their half day
Managing Stress course for $250+GST.
ACENZ are planning the pre-conference workshop to
focus on mental health and/or wellbeing in the workplace.
For more information, visit the conference website at CivilPlan Consultants Limited
http://www.smartertogether2018.co.nz/ CivilPlan Consultants Limited is a vibrant, progressive
land development and property advisory consultancy
ACENZ is also building a wellness page on the website based in the heart of Manukau City. They are a team of
and in the months to come will be engaging with the enthusiastic professionals with considerable experience
Health and Wellness Ambassadors so they can promote in town planning, civil engineering and land survey,
best practice in this area. One of our members Tony responsible for designing, consenting and managing the
Harrison from GHD shared a very brave story about his implementation of land development projects. They work
battle with depression. Click here to read Tony’s story. to an ethic of responsive project delivery and high quality
service to valued clients, understanding client needs and
Additional Member Benefits Added proactively managing clients’ strategic property interests.
They provide everything needed to deliver the following
Please note that ACENZ members now receive discounts services:
from the following suppliers:
• EAP - Employee Assistance Programme Services Congratulations to Members
• Noel Leeming. Please note that the Friends and • BCD Group who received recognition at the Waikato
Family offer and Torpedo 7 offer are currently Property Council awards late last year, including
available during May only. the Young Achiever Award (Jonathan Brown) and
• CEAS Outstanding Leadership Award (Blair Currie).
• Rainbow Creative - Design and print house • Blue Barn Consulting won the Most Improved
Workplaces Award in the Small Workplace Category
To find out more about the above offers and to get a list of at the IBM Best Workplaces Awards.
all other discounts available please refer to the Members • Dunning Thornton win the Concrete Award for
Benefits section of our website. PrefabNZ
Welcome to our new members! Other Member News
Geospatial Solutions and Abley Transportation
Consultants have decided to move forward as one, unified
Civix Ltd brand: Abley. This has been done to create clarity for you,
Civix is based in Auckland and
their clients, people, operations, stakeholders and wider
delivers a wide range of land
industry.
development services. The
company has many years of
experience and delivers solutions to DRAFT Practice Notes online
Architects, Planners, Developers, ACENZ has recently completed the update to practice
Builders and individuals who note B23 - Employment Agreement Template and
require the necessary preparation and planning to make Guidance document.
subdividing and building on land as simple and coherent
as possible. The guidance has been written for novice users of
employment agreements featuring a table of contents so
that more experienced users can go directly to the area
they need more information on.
The employment agreement template also features clauses
that are optional, should the employer wish to remove
or edit them, with highlights around what clauses are
Tektus Consultants Ltd mandatory to include.
Tektus is also based in Auckland and is a professional
services firm which delivers collaborative engineering, ACENZ has partnered together with Ford Sumner
environmental and planning solutions based on a Lawyers, specialists in employment law to update this
foundation of five contemporary values - creativity, practice note. The DRAFT editions are online in the
flexibility, optimism, simplicity and responsive Members Only Library here. You’ll need a Members login,
understanding. so if you don’t have one yet, email service@acenz.org.
The ACENZ Advisor - 10nz to get one set up. We’ve tried to create this guide for congestion charging, it has made provisions for building
most users in most circumstances, but should you have more capability in public transport, light rail, which are
specialist needs, feel free to reach out to Ford Sumner for necessary for a demand management system in the future.
more detailed or specialist employment advice. We are pleased to see projects such as the East West link
have been retained, if at a significantly reduced funding
level. However, one of the key questions for Government
BUSINESS NEWS is how proposed changes to employment law will impact
this programme of work? Projects such as these rely on
the ability to have a flexible workforce, often using a vast
Updated ATAP project announced number of contracted workers, yet there are legislative
changes afoot which could make this process problematic.
A realigned version of the priority transport projects
for Auckland to meet the city’s broader needs is to be
commended, say many in the industry. The Auckland Reviewing electricity prices
Transport Alignment Project 2018 announcement
confirms the projects the Government and Auckland Minister of Energy Megan Woods has issued the final
Council will prioritise in the next decade, along with $28 terms of reference for the Government’s review into
billion funding required for these. “Auckland’s a growing electricity pricing across New Zealand.
city and it needs a transport network which supports this.
We know congestion is stifling the city’s economy and Following months of consultation, the finalised terms
productivity. Which is why we encourage the Government appear to have toughened the scope of the review,
and council to keep the pressure on to streamline these which will now also examine whether power companies
projects and ensure they happen at pace,” says EMA. “We can make “excessive profits” and whether the costs of
are heartened that using models such as public private providing electricity services are or should be socialised
partnerships will be used for some of the projects outlined or spread evenly across different classes of consumers.
today. And there will be value to capture benefits that will
flow from this programme of work too. The review will not only assess whether consumers have
fair and equitable access to affordable electricity services
While this announcement was silent on the use of (taking into account that other factors, such as the role
The ACENZ Advisor - 11CEAS
Engineers working
for Engineers
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Engineers manage risk in today’s commercial environment.
• Comprehensive Professional
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350+
PEER
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based on current insurance MANAGED
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• Advice on negotiating fair
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claims 15+ years
Insurance consultancy provided by
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For further information or to obtain a quote, please contact:
bryce@aon.co.nz or visit ceas.co.nz
The ACENZ Advisor - 12of emerging technologies, will impact affordability), but in international equity markets and continued with the
will also ensure that the electricity market is delivering resignation of the White House National Economic
efficient prices to end-consumers. The roles of the Council Director Gary Cohn (speculation that he could
Commerce Commission, the Electricity Authority and be replaced by Kiwi Chris Liddell was proved to be false)
MBIE in regulating the electricity sector will also be and threats from the European Union that they would
reviewed. It is expected that the final review report will be respond with tariffs on Levi’s, bourbon and Harley-
completed by April 2019. Davidsons.
Government accounts show surplus In contrast to Trump’s protectionism, the member
states of the rebranded Comprehensive and Progressive
Net debt lower than expected as the Government’s Agreement for Trans Pacific Partnership (CPTPP)
accounts continued to track slightly better than expected signed the CPTPP into existence on 8 March without the
in the eight months to the end of February, with the participation of the USA (ironically this occurred on the
Government surplus nearly $500 million higher than the same day that Trump signed his tariffs into law). Watch
Treasury forecast in December, Finance Minister Grant this space as he appears in April to want to backtrack and
Robertson says. be part of the future agreement. Perhaps over Europe’s
dead body!
“The latest financial statements show that the Coalition
Government is sticking to the Budget Responsibility At a glance, the economies involved in the CPTPP:
Rules, which require us to run a sustainable surplus, keep • account for 13.5% of the world’s GDP;
net debt on track to fall to 20% of GDP in 2022 and to • include four countries with which New Zealand has
ensure that we manage Government spending responsibly never had a free trade agreement (of particular note is
by keeping it in line with previous governments,” Grant Japan, one of our top 10 trading partners); and
Robertson says. “A strong jobs market this year has • account for 65% of the total foreign direct investment
meant employment growth has been higher in recent into New Zealand.
months than the Treasury expected, meaning PAYE is
above forecast. Greater residential investment and private One of the key changes arising out of the CPTPP from
consumption have boosted GST receipts, while a rise in an M&A perspective is that the Government has agreed
customs and excise duties have also contributed to core to increase the threshold for the significant business
Crown tax revenue coming in $692 million better than assets test under the Overseas Investment Act for
expected. nongovernment investors from other CPTPP member
states from $100 million to $200 million. The National
The Treasury has said that most of the positive variance Interest Analysis released in connection with the CPTPP
in revenue is expected to remain through the rest of the reflects that this threshold increase for CPTPP nations
year. This reflects underlying economic conditions, with will also trigger most favored nations clauses in other
surveys of business and consumer confidence pointing free trade agreements (including those with China, Hong
to sustainable growth rates of about 3% over the next few Kong, the Republic of Korea and Taiwan) also allowing
years for the New Zealand economy. NZ Government investors from those nations to receive the benefit of
[April 2018] the increased threshold. These changes do not appear
to affect the higher significant business assets threshold
afforded to “Australian non-government investors” (which
When one door closes, another opens... is set at $516 million for the 2018 year), although we
note the practical difficulty of meeting the Australian
March saw U.S. President Donald Trump continue his “nongovernment investor” test (including, for example,
tendency to legislate via Twitter when he (apparently that the acquirer must be an Australian person or an
arbitrarily) imposed tariffs of 10% on aluminium and 25% entity incorporated in Australia, which rules out the most
on steel imported into the U.S. While Trump’s rhetoric common structure whereby a New Zealand incorporated
about putting “America First” has been prevalent in recent subsidiary makes the purchase).
times, the tariffs came as a surprise to many and were
initially touted to apply to steel and aluminium imported The CPTPP itself won’t be implemented in New Zealand
from any country, although U.S. allies Mexico, Canada unless and until at least half of the signing countries ratify
and Australia were later exempted (New Zealand has also it and, even then, only if New Zealand is one of those
since formally requested a similar exemption). countries. Although it is uncertain exactly when this will
occur, MFAT has estimated it is likely to happen within
Even though Trump has since continued to proclaim the next 12 to 18 months.
the benefits of this policy (and to discount the risks
of any potential trade wars it could create), the fallout It is proposed that the required legislative changes will
from the tariff announcement began with a sharp drop be effected by amending the Trans-Pacific Partnership
The ACENZ Advisor - 13Agreement Amendment Act 2016 so that it commences handling of privacy complaints. The Bill is set to receive
at the same time as the CPTPP (although this Act was its first reading in Parliament.
passed by Parliament, it never came into force). As it is
currently drafted, only acquisitions after this Act (and the New Corporate Governance Handbook
provisions of the CPTPP) come into effect will be subject
to the increased thresholds. We expect to receive more The Financial Markets Authority (FMA) has published
clarity on the exact date that the increase in thresholds its latest edition of the Corporate Governance Handbook,
will occur as the legislative process develops. its first update since 2014. The Handbook removes any
unnecessary overlap with NZX’s 2017 update of its own
Given that the CPTPP members and other nations corporate governance rules. It is designed as a guide for a
detailed above account for the majority of foreign direct wide range of companies and businesses including issuers
investment into New Zealand, there is a chance that of unlisted securities, those who want to raise capital or
raising the significant business asset threshold will ease list on the NZX. The Handbook also contains updated
some of the pressure on the Overseas Investment Office. sections on non-financial reporting, environmental
This would be welcome at a time where the OIO is likely and social governance reporting, guidelines on auditor
to be feeling some heat from the regime changes relating independence and audit committees, transparency of
to residential land (which Treasury estimates could remuneration disclosures and board composition.
increase the number of applications screened per year
from 150 to 4,700). However, because the bulk of foreign This latest edition of the Handbook recognises that
direct investment from CPTPP nations originates in the NZX Code is the primary guidance on corporate
Australia (and the thresholds for these investors will not governance practices for NZX-listed companies, as
change) and, assuming the test for persons from CPTPP such the Handbook has been refocused for non-listed
nations mirrors the current Australian regime, very few entities. However, we note that the corporate governance
persons will meet the “non-government investor” test, the principles do not differ substantially for non-listed
OIO may not receive a great deal of respite. - Webb and listed companies in the Handbook. For further
Henderson. information, refer to the FMA’s website.
Updating NZ’s Privacy Laws
STATISTICS
This month, the New Zealand Government introduced
a new Privacy Bill which will repeal and replace New • The consumers price index (CPI) rose 0.5 percent in
Zealand’s 25-year old Privacy Act 1993. The Bill includes the March 2018 quarter, Stats NZ said this month.
a majority of the changes recommended by the Law The annual inflation rate was 1.1 percent, down from
Commission in 2011. 1.6 percent in the year ended December 2017.
• Government-influenced price changes affected the
In addition to incorporating the Act’s core principles, the annual figure, with higher cigarette and tobacco
Bill gives the Privacy Commissioner enforcement power prices being countered by cheaper tertiary education.
and strengthens its information gathering abilities. For The annual tobacco tax increase on 1 January 2018
example, the Commissioner will be able to make binding lifted quarterly inflation, with prices up 10 percent.
decisions on access to information complaints and issue “The average price for packet of 25 cigarettes
compliance notices to entities who are found to be in was $35.14 in March, compared with $31.68 last
breach of the privacy laws. The Bill will also require December,” Stats said.
“agencies” (i.e. any entity handling personal information) • Higher prices for accommodation services and petrol
to notify the Commissioner and affected individuals also contributed to the quarterly CPI rise, but they
of any unauthorised access to or disclosure of personal were slightly offset by seasonal falls for international
information where that access poses a risk of harm. airfares.
• Prices for tertiary education fell 16 percent in the
While the current Commissioner is generally pleased with March 2018 quarter. This is the first time this series
the Bill, he has noted that the fines for non-compliance has fallen since 2003; it was due to the introduction
are currently set too low. The Bill has proposed a fine of the Government’s fee free first year policy. The
of $10,000, but the Commissioner wishes to see this policy applies for all New Zealand secondary students
threshold be raised up to $1 million for organisations finishing school from 2017 onwards, and adults who
and $100,000 for individuals who severely breach their previously studied for less than half a full-time year of
privacy obligations The Commissioner’s recommendation tertiary education or industry training.
is consistent with Australia’s privacy sanctions. The • Housing and household utility prices increased 3.1
Commissioner also recommended that the privacy percent in the March 2018 year, led by construction
functions of the Director of Human Rights Proceedings be and rents.
delegated to the Commissioner’s office to streamline the • Construction prices increased 4.7 percent in the
The ACENZ Advisor - 14year, and 0.4 percent in the quarter. This was the Draft strategy revealed for Health Safety at
smallest quarterly rise since the March 2011 quarter.
“Rising building prices in Auckland and Wellington
Work
have begun to slow. Both were up 0.3 percent in the
The Government’s draft strategy for improving the health
latest quarter,” SNZ said. “For Auckland, this is the
and safety of New Zealand workers over the next 10 years
smallest rise since December 2012.” Construction
has been released, with submissions now being called
in Canterbury fell 1.1 percent in the March quarter
for, says Minister for Workplace Relations and Safety.
as the market continued to cool. Statistics NZ (April
“New Zealand has made good progress in recent years
2017)
in reducing the rate of acute harm. However, urgent
work still remains. I believe that we can be among world
HEALTH & SAFETY leaders for healthy and safe workplaces,” says WorkSafe.
“The Strategy outlines an opportunity to drive ambitious,
Co-operation key to safety on big projects sustained and system-wide improvements in our health
and safety performance to significantly lift the wellbeing
Big construction projects require co-operation between and living standards of all workers and their families
parties in order to keep people safe, and Worksafe is in New Zealand. “I want to ensure that we are reducing
reminding contracting firms that New Zealand’s health all types of significant harm at work – this includes
and safety laws actually require it. “Building sites can broadening the focus from acute harm to make sure we’re
involve hundreds of people coming and going over managing wider health risks, including mental health. “A
the course of a build. Co-operating with other parties, key priority highlighted in the Strategy is ensuring better
and knowing what safety systems are in place is key to outcomes for Māori, and other workers at greater risk
keeping workers safe from harm,” says WorkSafe Manager, who are over represented in injury statistics and high-risk
Investigations and Specialist Services. Premier Project sectors, such as forestry and construction, or more likely
Management Limited was sentenced in the Auckland to be engaged in temporary, geographically remote or
District Court yesterday after an incident on an Auckland precarious employment.
building site they were managing, where a lack of
communication between companies led to a worker being The Strategy aims to provide a common direction and
severely injured. priorities and an opportunity for everyone to work
together more effectively on strengthening our health
In September 2016, a worker employed by another and safety system. Once finalised, it will also outline
contractor on the site fell six metres to the ground after more meaningful measures and targets for monitoring
scaffolding failed. He suffered injuries to his head, our performance as a country. “Health and Safety is
abdomen and arm which required six days hospitalisation a collective responsibility of all New Zealanders. I
and five months away from work. “Workers and encourage you to take part in creating better health and
contractors were unclear on who was responsible for safety outcomes for our workers by giving your feedback.
what and as the project managers, Premier Project The public consultation is open until 8 June 2018 and
Management should have consulted and co-ordinated a summary of the consultation will be made available
their activities with others on site, particularly about later this year,” Ministry of Business, Innovation and
how the risks of the scaffold should be managed,” said Employment’s website.
WorkSafe. Our investigation found unsafe scaffolding,
inadequate and irregular scaffold inspections, a lack of Creating healthier and safer workplaces
systems and procedures and a lack of communication and together
co-ordination on the site. Two other parties have been
charged in relation to the incident and their cases are still People are your business’s most valuable asset. ACC is
before the Court. Notes: A fine of $14,000 was imposed. proposing some new, enhanced products they believe will
help lead to healthier and safer workplaces and they’d like
Project Management Ltd had made a voluntary payment to know what you think. These products will more closely
of $5,076 to the victim prior to sentencing, and no further link your health and safety performance with the amount
reparation was ordered. Premier Project Management you pay ACC. So, it’s important you understand what’s
Limited was charged under sections 34(1) and (2)(b) of being proposed and how it might affect you.
the Health and Safety at Work Act 2015. Being a PCBU
who had a duty in relation to work being carried out, Find out more and have your say at shapeyouracc.co.nz/
failed to, so far as was reasonably practicable, consult, workplace-incentives
co-operate and co-ordinate activities with all other
PCBUs who had a duty in relation to the same matter. The For a quick flavour of what’s being proposed, see the video
maximum penalty is a fine not exceeding $100,000.
The ACENZ Advisor - 15Asbestos Regulations now in full effect work, or a formal training programme for dealing with
machine malfunctions - even though chain jams were a
WorkSafe says Time’s up! Businesses must now take known issue.
greater responsibility for managing asbestos in their place
of work. On 4 April, the two-year window for industry, Notes:
the regulator and training partners to implement changes • A fine of $371,250 was imposed.
created by the Health and Safety (Asbestos) Regulations • Reparations of $30,000 were ordered.
2016 expired. This means that the requirements in the • Costs of $1,584.50 were ordered.
Asbestos Regulations around managing the risks of • Avon Industries Limited was charged under sections
asbestos are in full force. This includes the requirement 36(1)(a), 48(1) and (2)(c) of the Health and Safety at
for asbestos management plans and greater competency Work Act 2015.
requirements on the asbestos removal industry. • Being a PCBU, failed to ensure so far as was
reasonably practicable, the health and safety of
While we generally understand that asbestos poses a workers who worked for the PCBU, while the workers
serious health risk, the Regulations are about raising the were at work in the business or undertaking and that
bar for the removal industry and bringing New Zealand’s failure exposed the workers to a risk of serious injury.
approach to managing asbestos in the workplace and any • The maximum penalty is a fine not exceeding $1.5
associated removal in line with Australia and the UK. million. Worksafe [April 2018)
Do you really know what your workers are Mental Health & Wellness Workshops
doing? Did you know that mental health and wellbeing is
included in your H&S requirements? It’s an important
The importance of risk assessments and implementing part of keeping not only yourself but your staff healthy.
appropriate controls - including training and monitoring
workers to ensure they’re working safely, was a dominant ACENZ has teamed up with Mental Health Foundation
message in the sentencing of Avon Industries Limited on to provide a pre-conference workshop on Mental Health
health and safety charges. and Wellness. You can read more about the two half-day
workshops online here.
The Whangarei District Court released their sentencing These workshops are aimed at HR professionals, H&S
decision on Wednesday, after Avon Industries appeared managers, senior staff or anyone else wanting to ensure
in court for sentencing in February. Avon Industries is their workplace has a mental health and wellness plan in
a production engineering firm who carry out work that action. You’ll be able to walk away from these workshops
includes hot dip galvanising at temperatures over 450C. In with practical solutions for your own office.
October 2016 a team of workers were re-galvanising chain
when the bespoke machine they were using jammed. A
worker climbed onto the frame of the machine, which was LEGISLATION
situated above a bath of molten zinc, to shake the chain
free. The worker’s left foot fell through a gap in the frame Note: Bills go through several stages before becoming an
and went into the bath, resulting in molten zinc pouring Act of Parliament: Introduction; First reading; Referral to
into the worker’s boot. He sustained deep burns to his left select committee; Select committee report, Consideration
foot and ankle and spent 21 days in hospital as a result of of report; Committee stage; Second reading; Third
the incident. reading; and Royal assent. Business Central regularly
submits on bills open for submission but encourages our
WorkSafe investigation found that Avon Industries had members to as well. Bills open for submissions: 12 Bills
not conducted a risk assessment on either the process or
the machine. They did not have in place a safe system of There are twelve bills currently open for public
The ACENZ Advisor - 16submissions to select committees. panel discussions, and expert commentaries, you will
• Health (National Cervical Screening Programme) learn how to promote positive change within yourself,
Amendment Bill (3 May 2018) your organisation and redefine the future. This is a great
• Psychoactive Substances (Increasing Penalty For opportunity to invest in your future, develop new skills
Supply And Distribution) Amendment Bill (4 May and create networks with leaders from across the sector.
2018) Find more information on the ACENZ External Events
• Te Pire Haeata ki Parihaka / Parihaka Reconciliation page. Use Association of Consulting Engineers
Bill (7 May 2018)
• Crimes Amendment Bill (10 May 2018) New Zealand Exclusive Discount: 10% Off
• Employment Relations (Triangular Employment) Standard Rate with the Priority Booking
Amendment Bill (11 May 2018) Code WICE0918Z - A Q5
• Corrections Amendment Bill (17 May 2018)
• Social Assistance (Residency Qualification)
Legislation Bill (23 May 2018) Social Media Links
• Residential Tenancies (Prohibiting Letting Fees) Follow us on facebook and LinkedIn so you are kept up to
Amendment Bill (23 May 2018) date with industry information and events.
• Privacy Bill ( 24 May 2018)
• Coroners (Access to Body of Dead Person)
Amendment Bill (25 May 2018)
• Local Government (Community Well-being)
Amendment Bill (25 May 2018)
• Earthquake Commission Amendment Bill (31 May
2018
Overviews of bills and advice on how to make a select
committee submission – available at: https://www.
parliament.nz/en/pb/sc/make-a-submission/ Full text of
bills available at: http://www.parliament.nz/en-nz/pb/
legislation/bills
2nd Annual Women in
Construction, Infrastructure &
Engineering Leadership Summit
Construction, Infrastructure and Engineering are among
the largest growing industries in New Zealand. To sustain
this growth, organisations are beginning to embrace
diversity and unlock the benefits of an innovative, future-
focused workforce. But despite the sector being ripe with
opportunity, diversity is not reflected in the representation
of women in senior leadership roles. To ensure the
continued success of the sector,women must take charge
of their careers and empower others towards an inclusive
future. The 2nd Women in Infrastructure, Construction
and Engineering Leadership Summit brings together
accomplished women and men who share the vision of
mutual success. Insightful case studies, interactive panels
and expert commentaries will empower professionals
to create possibilities out of challenges. In creating a
platform for collaboration, this summit will empower
aspiring leaders to ensure a successful future for the
sector.
Be inspired by our line-up of accomplished leaders as
they share their journeys and insights on what drives
their success. Through our case studies, interactive
The ACENZ Advisor - 17You can also read
