TRADE New life in old town - NZ Homebuilders and Bunnings break new ground - Page 8 - Bunnings Warehouse

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TRADE New life in old town - NZ Homebuilders and Bunnings break new ground - Page 8 - Bunnings Warehouse
TRADE
                                     APRIL 2015
New life in old town
NZ Homebuilders and Bunnings
break new ground – Page 8

Working with the taxman
Managing business ACC commitments

Lured by the lifestyle
Kynoch Construction profile

The green, green buildings of home
Sustainability in construction
TRADE New life in old town - NZ Homebuilders and Bunnings break new ground - Page 8 - Bunnings Warehouse
There is a lot of winning going on in the
    country. From the sports fields to the                                                                                                    Earn LBP Skills
    business arenas, New Zealand is on a                                                                                                      Maintenance Points
    positive roll.                                                                                                                            WITH TRADE ISSUE

                                                                                                                                                                                                      #
    There is a spirit of achievement and success that is flowing through the                                                               Once you have read this edition
    country. Long may it continue!                                                                                                         of Trade Issue remember to keep
                                                                                                                                           a record of your learning.
    This edition of Trade Issue covers a great deal of ground and subject matter.
                                                                                                                                           1 hour of learning = 1 point April 2015
    It is often said the two certainties in life are death and taxes. The latter can
    be much easier to deal with once you have a handle on managing your
    businesses ACC responsibilities.                                                                                                                                     Changes are happening to the LBP
    ACC is perhaps the one area of taxation that people tend to take a ‘hands
                                                                                                                                                                         Skills Maintenance programme
                                                                                                                                                                         from 2 November 2015.
    off’ approach to managing. This, says a high profile tax expert, is a lost
    opportunity. EY tax partner Jo Doolan, who has more than 20 years’                                                                                                   Find out more at

welcome
                                                                                                                                                                         bunnings.co.nz/trade/trade-central

    experience with IRD and the accounting profession says too many small
    and medium-sized companies see their ACC commitments as a “passive
                                                                                                                                        Contents
    nuisance”, whereas, in fact individuals and businesses need to take a hands-on
    approach. In this issue we explore why and how.
                                                                                                                                        05         New Products

    The green movement is alive and well in NZ, and sustainability and protecting                                                       06         Building Essentials
    the environment are key considerations for many. The building sector is
    no exception to this. As we explain people are willing to pay a premium for
                                                                                                                                        10         Building Scene
    buildings that are environmentally friendly and sustainable. Those in the know                                                      11         Trade Advice
    in New Zealand suggest builders and tradies would do well to tap into this
    potentially lucrative market.                                                                                                       14         Determination

                                                                                                                                        08                                     12
    Our Determination section of this issue covers an important topic area –
    Restricted Building Work or RBW. Despite the information provided by the                                                                                New life in
    Ministry of Business, Innovation and Employment it would be fair to say that                                                                            old town
    not everyone knows what is RBW and what is not. Citing two cases from                                                                                                        Working with
                                                                                                                                                                                 the Taxman
    Wellington we delve into the ‘nitty gritty’ of this area of building compliance.
    Our profile this month is on Scottish born builder Peter Kynoch. Now resident
    of Palmerston North he left the Highlands of home for the chance to start his

                                                                                                                                        14                                    15
    own enterprise down under...and also the lure of the great outdoors.
    We also cover a new addition to one of Auckland’s oldest suburbs with the
    story of how Bunnings helped New Zealand Homebuilders put roofs over first
    homebuyer’s heads.                                                                                                                   The green,                             Restricting
                                                                                                                                         green buildings                        restricted
    As always, we hope you enjoy what you read and we are always keen to hear                                                            of home                                building work
    your comments on other matters you wish us to cover.

    Des Bickerton
    Commercial Manager

    The opinions expressed in Trade Issue are not necessarily those of Bunnings. Although every effort has been made to ensure
    the accuracy of the information, the reader remains responsible for the correct selection and use of tools, materials and systems
    as well as following any law or code mentioned in this issue.

                                                                                                                                        *Terms and conditions apply. See Trade Desk for details.
2
TRADE New life in old town - NZ Homebuilders and Bunnings break new ground - Page 8 - Bunnings Warehouse
Kaboodle Kitchens
Kitchens are often the ‘make or break’ part of creating someone’s dream home. Done to
perfection they can be the finishing ‘touch’ to ensure clients are delighted with the job. Yet the
cost and time pressures involved in having to make the area both functional and good looking
can hamper budgets and work flows.

Cost pressure?
Kaboodle kitchens are a fraction of the cost that you would normally
expect to pay if you were opting for a custom built kitchen. This price
saving is largely due to the modular nature and standard sizes of the
Kaboodle kitchen products.
A comprehensive range of cabinets are available. Cabinets, accessories,
colours & finishes can all be tailored to meet the required budget.
Cost savings don’t come at the expense of quality however. The
Kaboodle kitchen range has all the core features you would expect in a
custom built kitchen: Soft close full extension drawers, solid 16mm
backs, adjustable feet, soft close hinges, moisture resistant board,
recessed backs & a 10 year warranty on cabinetry.

Time pressure?
The modular nature means Bunnings Warehouse stores carry the three
most popular colours, with another two by Special Order. Delivery to
smaller stores is usually within 5 days.
A design service specifically for the Bunnings Trade Customers is also
available. Send through your plans for an easy path to a quality kitchen.
Still struggling to meet deadlines? Kaboodle can assemble the cabinets
for you.
All Bunnings Warehouses have display kitchens on show. Contact a
Bunnings Account Manager or head to a Bunnings Warehouse store
to discuss your requirements.

                                                                                                     3
TRADE New life in old town - NZ Homebuilders and Bunnings break new ground - Page 8 - Bunnings Warehouse
Repairs to plasterboard
                                      walls and ceilings
                                      Winstone Wallboards has a
                                      range of GIB® products
                                      well suited to make minor
                                      repairs easy and to create
                                      a professional finish.
                                                   Visit www.gib.co.nz for more information.

                                      Purchase any GIB Plus 4® (4L pail) or GIB®
                                      TradeFilla™ (5kg bag) or GIB® Gapfiller (300ml
                                      cartridge) from Bunnings between 1st - 30th
                                      April 2015, and go into the draw to win.

                                      1 of 3 Flight Centre Gift Cards,
                                      valued at $1000 (incl. GST) each.
                                      Terms and conditions: This promotion is open to trade account holders only. Purchase your GIB Plus 4® (4L pail), GIB TradefillaTM (5kg bag) or GIB GapfillerTM
                                      (300ml cartridge) from any participating Bunnings stores throughout New Zealand and you will automatically go in the draw. Promotional period is between
                                      1st – 30th April 2015. Promotion will be drawn on Friday 1st May. Prizes are to be taken as stated and are non-exchangeable.

                                      MORE FROM WOOD.

                                      EGGER OS’Floor by IBS
                                                                                                            TM

                                      PERFORMANCE YOU CAN RELY ON
                                      Fast installation                                                                     Certified
                                      and easy handling
                                                                                                                            • Fit for Purpose AS/NZS 1860.1 Particle Board
                                      • Pre-marked nail grid on the top face
                                                                                                                            • Continuous third-party testing
                                      • Major axis marked on surface
                                                                                                                            • Hardwearing exposure tested by SCION
                                      • Edge sealed T&G profile                                                               New Zealand
                                      • Lightweight
                                      Proven performance
                                      • Strength and stiffness properties
                                      • Dimensionally stable
                                      • Edge swelling protection
                                      Environmentally friendly
                                      • E0 Formaldehyde-free glue
                                      • Supports healthy indoors

                                      Purchase 15 sheets of the OSB Floorsheet and be in the draw to win
                                      1 of 3 AEG 18V 3 Piece Brushless Combo Kits
                                      worth $799 incl. GST
                                      Terms and Conditions: Promotion runs from 1st – 30th April 2015. Purchase 15 sheets of the OSB Floorsheet from a
                                      Bunnings store. All eligible customers will be drawn at the conclusion of the promotion and the prize will be sent during
    For samples, brochures and more   the month of May 2015. There are 3 prizes to be won. Offer open to trade account holders only, limit of one prize per
                                      customer account. The prize is non-refundable, non-transferable or redeemable for cash and will not be available for
    info check out our webpage        pick-up at the time of purchase.

4
TRADE New life in old town - NZ Homebuilders and Bunnings break new ground - Page 8 - Bunnings Warehouse
new
TOOLS OF THE TRADE

                                                 $
                                                    65130        EXCL. GST
                                                       SKU00288549
                                                                                                                  TECH SPECS
    Bosch Brushless 18V Combo Kit
    • 3 x 4.0Ah 18V-Li batteries and AL1860 Charger in tool bag                                                   Bosch Brushless 18V Combo Kit
    • Powerful sound for FM/AM and MP3 radio                                                                      18V GSB 18V-EC
                                                                                                                  Brushless Drill/Driver Striker
    • Brushless technology provides higher performance and longer runtime
                                                                                                                  • Voltage                       18V
                                                                                                                  • No-load speed (1st /2nd gear) 0-500 / 1700rpm

                                                                                9   $ 91 –
                                                                                   From   EXCL. GST
                                                                                                                  • Impact rate (bpm)
                                                                                                                  • Max torque
                                                                                                                                                  0 – 25,500
                                                                                                                                                  50Nm
                                                                              $
                                                                               10334          EXCL. GST
                                                                      To SKU00286409/SKU00286310/SKU00286316
                                                                                                                  • Max drilling Ø wood/steel
                                                                                                                  • Torque setting range
                                                                                                                                                  38/13 mm
                                                                                                                                                  18 + 1
                                                                                                                  • Weight                        2.2kg
                                                                                                                  18V GDX 18V-EC
                                                                                                                  Brushless Impact Driver/Wrench
                                                                                                                  • Voltage (V)              18
                                                                                                                  • No-load speed (rpm)      0 – 2,800
                                                                                                                  • Impact rate (bpm)        0 - 3,200
                                                                                                                  • Max. Torque (Nm)         170/185
                                                                                                                  • Screw diameter           M6-M16
                                                                                                                  • Weight (kg)              1.8kg
    Arteor Range
    • Timeless design                                                                                             GML 18V-LI SoundBoxx
    • A wide choice of ergonomics and finishes from the elegant                                                   • Voltage (V)                  18
      simplicity of the neutral finishes to the refinement of the signature line                                  • Battery (Ah)                 1.3– 4.0
    • A collection rich in choice and fine materials to                                                           • Music Source                 FM/AM/Aux-In
      make each room truly unique                                                                                 • Presets                      5FM/5AM
    • Creates a modern look in your home                                                                          • Loudspeaker (W)              2x5W Neodymium
    • Ideal to modernise power points and switches
    • Order only                                                                                                  Arteor Range
                                                                                                                  • Cover plates available for switches
                                                                                                                    and powerpoints
                                                                                                                  • Push button dimmer mechanisms available
                                                                                      $
                                                                                          16434
                                                                                          SKU00275027
                                                                                                      EXCL. GST
                                                                                                                  • Sizes vary for different products
                                                                                                                  • Switch grids and powerpoints available

   Foreno Sprint Sink Mixer
   •   Elegant and modern look, square style with soft edges                                                      Foreno Sprint Sink Mixer
   •   All pressure designer style sink mixer                                                                     • WELs Rating: Mains 3 Star; 8L/min, Low/
   •   Swivel spout                                                                                                 Unequal 5 Star; 6.0L/min
   •   Watermark and Codemark certified                                                                           • Minimum pressure 35kpa
   •   7 year warranty

                                                                                                                                                                    5
TRADE New life in old town - NZ Homebuilders and Bunnings break new ground - Page 8 - Bunnings Warehouse
essentials
             BUILDING

1200mm
                                  $
                                      173                  04                                                          $
                                                                                                                            34            70
                                                                                                                                                                                 173
                                                                                                                                                                                 $                   04
Cargo Case                                                                                                                                             166 Piece
Blow moulded
                                                                                  8m Xtreme                                                            Socket Set
heavy duty plastic.                                                               Tape Measure                                                         1/4, 3/8 & 1/2".
SKU00188101                               EXCLUDES GST                            SKU00162394                                EXCLUDES GST              SKU00228312                   EXCLUDES GST

20oz
Claw Hammer
Nylon grip. SKU00127078
                                          $
                                               59
                                               EXCLUDES GST
                                                             13                    1200mm Level
                                                                                   1 horizontal, 2 vertical
                                                                                   vials. Lightweight.
                                                                                   SKU00260797
                                                                                                                      $
                                                                                                                           93
                                                                                                                           EXCLUDES GST
                                                                                                                                         91            Work Boots
                                                                                                                                                       Stout brown. Sizes
                                                                                                                                                       7-12. Steel cap.
                                                                                                                                                       SKU00268821
                                                                                                                                                                                 $
                                                                                                                                                                                     155
                                                                                                                                                                                      EXCLUDES GST
                                                                                                                                                                                                     65
                                                                                                                                                                                                     PEr
                                                                                                                                                                                                     PAir

                                                                                Long                                                                   Concrete

                                   1258                                                                                   34                                                         17304
                                                                                Handled Shovels                                                        Wheelbarrow
Trailer
7" x 4". Galvanised.           $                                26              Round, square,
                                                                                trenching, plumbers.                  $                  74            Bolt free plastic tray,
                                                                                                                                                       heavy duty tyre, well     $
Fully assembled.                                                                Fibreglass handle.                                                     balanced construction.
SKU00809306                              EXCLUDES GST                           SKU00198753G                               EXCLUDES GST                SKU00208035                    EXCLUDES GST

Terms and Conditions: Not all services and products featured are available in all stores, but may be ordered. See in store for product availability.

                                                                                                     EACH
TRADE New life in old town - NZ Homebuilders and Bunnings break new ground - Page 8 - Bunnings Warehouse
s   18V
    Combo Kit
    Includes hammer drill,
    impact driver, circ saw,
    angle grinder & area
    light. SKU00254287
                                      $
                                          781EXCLUDES GST
                                                               74                   710W
                                                                                    Hammer Drill
                                                                                    SKU00281350
                                                                                                                    $
                                                                                                                         123EXCLUDES GST
                                                                                                                                             48
                                                                                                                                                     1050W
                                                                                                                                                     Reciprocating
                                                                                                                                                     Saw
                                                                                                                                                     Variable speed.
                                                                                                                                                     SKU00894305
                                                                                                                                                                                  $
                                                                                                                                                                                      259
                                                                                                                                                                                       EXCLUDES GST
                                                                                                                                                                                                       13

                                                                                                                                                                                  1600W Mixer
                                                                                                                                                                                  Ideal for concrete &
                                                                                                                                                                                  mortar. 2 speed gear
                                                                                                                                                                                  box. SKU00288999
                                                                                    18V/240V Radio

                                     121565                                                                                   260                                                     17304
    Slide
                                 $                                                                                       $                                                        $
                                                                                    Powered by 18V AEG
    Compound                                                                        Battery or 240V mains.
                                                                                    USB charging with device
    Mitre Saw                                                                       storage. Battery not                                                                                               EACH
    SKU00212444                            EXCLUDES GST                             included. SKU06230214                        EXCLUDES GST                                           EXCLUDES GST

                                         $
                                             127                 83                                                   $
                                                                                                                           260                                                    $
                                                                                                                                                                                      30348
                                                                                                                                                     18V Multi
      185mm                                                                         230mm                                                            Function Tool
      Circular Saw                                                                  Angle Grinder                                                    2 x 2.0Ah lithium ion
      1050W. SKU00236024                        EXCLUDES GST                        2200W. SKU00328946                        EXCLUDES GST           batteries. SKU00254295             EXCLUDES GST

                                                                                    17kg
                                                                                    Demolition
                                                                                                                                                     9500W

                                        433                                                                       147652                                                          208609
                                                                                    Breaker
    50L Air
    Compressor
    2200W. Belt drive.
                                    $                         91                    1500W. 30mm
                                                                                    Hex shank.
                                                                                                              $                                      Generator
                                                                                                                                                     2100 OHV 420cc           $
                                                                                    Anti-vibration.                                                  engine. 28L fuel
    Dual pressure gauges.                    EXCLUDES GST                           SKU00253045                          EXCLUDES GST                capacity. SKU00278934            EXCLUDES GST
    SKU06290393

    We reserve the right to restrict the purchase of commercial quantities. All prices are exclusive of GST. Prices valid to Sunday 31st May 2015.
TRADE New life in old town - NZ Homebuilders and Bunnings break new ground - Page 8 - Bunnings Warehouse
New life in old town
    In one of Auckland’s oldest residential areas, New Zealand Homebuilders
    is breaking new ground with the help of Bunnings.
    In 1843 the suburb of Avondale greeted its first European settler. Once the Great
    North Road was completed, and with a railway connection coming on track in
    1880, the area grew rapidly and became home to key industries such as brickyards,
                                                                                               “We started the company in
    tanneries, mills and pottery works. Fast forward to 2015 and a whole new                    April 2013 and prior to that
    generation of Aucklanders will soon be calling Avondale their very first home.
    A major project is nearing completion at 27 Powell Street. Working alongside a              my relationship with Bunnings
    development company, New Zealand Homebuilders has been charged with the task
    of completing 35 houses — designed primarily for first time owners — in record
                                                                                                was well established. They had
    breaking time.                                                                              proven their ability to deliver on
    According to director William Bouman it was an undertaking that needed a great
    deal of team work and coordination. “This part of Avondale is well established but
                                                                                                a number of other projects but
    land became vacant and the opportunity arose to create this new residential area.           the Avondale one was a whole
    The scale of the project was a challenge in itself and involved developing a variety
    of two and three story houses with a choice of two floor plans. The time frame              new scale of development.”
    made matters even tighter. The building began in September 2014 and the
    completion date is June this year.”

                                                                                           A whole different scale
    Account Manager Ryan Sylvester and Builder Steve Blake on site.
                                                                                           “By any measure this is a really fast turnaround. Our role was really developing
                                                                                           everything from the ground up so there were a variety of major responsibilities that
                                                                                           needed to be managed.”
                                                                                           While partner Steve Blake looked after the project management side of things,
                                                                                           William’s role was looking after management, marketing and other functions
                                                                                           including the liaison with Bunnings.
                                                                                           “We started the company in April 2013 and prior to that my relationship with
                                                                                           Bunnings was well established. They had proven their ability to deliver on a
                                                                                           number of other projects but the Avondale one was a whole new scale of
                                                                                           development.”
                                                                                           “We had total faith in Bunnings to deliver and they were also mindful of how critical
                                                                                           each and every step of the process was. They made sure they had everything in
                                                                                           stock when it needed to be and were incredibly good to deal with. They have
                                                                                           always been our key building supplier but this latest venture has only solidified the
                                                                                           relationship.”

8
TRADE New life in old town - NZ Homebuilders and Bunnings break new ground - Page 8 - Bunnings Warehouse
Get to know your
                                                                                            Account Managers
                                                                                            Profiling Mark Canning
                                                                                            Having been with Bunnings for 10 years and in the
                                                                                            industry all his working life, Mark knows the value of
                                                                                            keeping good relationships to get the right results for
                                                                                            everyone. Mark has a grown up family and says a
                                                                                            round of golf helps keep him sane!
                                                                                            Mark Canning, Rotorua,
                                                                                            Phone 027 498 7136

                                                                                            Bunnings Trade Account Managers
                                                                                            Area Sales Managers          Avondale TC/North Shore      Hornby TC/Riccarton/
                                                                                            Gareth Osborne               Craig Canty                  Shirley
                                                                                            027 839 0109                 027 246 2001                 Darren Payne
                                                                                                                         Glenfield/Avondale TC        027 503 6046
                                                                                            Matt Cardey                  Forrest Jin                  Hornby TC/Riccarton/
                                                                                            027 652 5268                 027 484 2591                 Shirley
                                                                                            Tim Trowell                  Pukekohe                     Chris Sunman
                                                                                            027 200 2034                 Carla Hira                   027 260 2468
                                                                                                                         027 246 2015
                                                                                                                                                      Hornby TC/Riccarton/
                                                                                            Troy Taylor                  Te Aroha/Paeroa              Shirley
                                                                                            027 200 2032                 Nigel Phillip
                                                                                                                                                      Martyn Hugo
                                                                                                                         027 230 8569
                                                                                                                                                      027 240 8950
                                                                                            Area Account                 Whangamata
                                                                                            Managers                     Barry Leighton               Dunedin
For Bunnings trade account manager Ryan Sylvester the project felt somewhat like            Whangarei/Kaikohe/Kerikeri   027 493 2018                 Aubrey Gray
                                                                                                                                                      027 459 1738
being thrown into the ‘deep end’.                                                           Wayne Duxbury                Hamilton/
                                                                                            027 475 5019                 Putaruru                     New Plymouth/
“I had joined Bunnings in August last year and my first assignment was working              Whangarei                    Alan Miller                  New Plymouth Trade
with the New Zealand Homebuilders team in trying to win the tender for building the         Scott Scampton               027 499 7165                 Danny McVicar
                                                                                            027 499 0812                 Hamilton                     027 246 2011
35 homes. I felt a real sense of responsibility and was somewhat scared of losing                                        Darren Mayo
                                                                                            Avondale TC                                               Hawera
the job. Fortunately for me our area manager, and Steve Blake, were extremely               Denis Richardson             027 246 2008                 Grant Cambie
supportive and helpful.”                                                                    027 498 1948                 Te Awamutu/                  027 445 2917
                                                                                            Avondale TC/Mt Roskill       Tokoroa
                                                                                                                                                      Feilding
Once the good news was received there was undoubtedly a moment of celebration,              Greg Dalley                  Brent Pottage
                                                                                                                         027 457 9979                 Kevin Walpole
                                                                                            027 200 1964
then down to the serious business of making sure the project ran smoothly.                                                                            027 446 1786
                                                                                            ETTC/Botany/Mt Wellington    Cambridge
                                                                                                                         Bruce Robertson              Palmerston North
                                                                                            Mark Haddon
                                                                                            027 453 7211                 027 475 8661                 Vanessa Linton
Nearing the end                                                                             ETTC/Botany/Mt Wellington    Te Puke                      027 445 0957
                                                                                            Blair Wilcock                Dean Cubis                   Palmerston North
“Our task was to supply trusses, roofing and all associated hardware. Given the                                          027 487 2697                 Howard Yates
                                                                                            027 436 9902
scale of the project and the time frames, we had to keep an eye on all sales going          Manukau/ETTC                 Mt Maunganui                 027 246 2012
through the account to ensure we were keeping to budget.”                                   Sam Marcel                   Dean Hollamby                Waikane/Naenae
                                                                                            027 498 1796                 027 228 6462                 Matt Jenkins
With the finishing line in sight this new chapter in Avondale’s building history is         Manukau/ETTC                 Mt Maunganui                 027 243 1932
about to be completed.                                                                      Wini Ryan                    Roger Corrin
                                                                                                                                                      Lyall Bay/Naenae
                                                                                            027 246 2003                 027 246 2004
                                                                                                                                                      Heinz Baker
                                                                                            Takanini/ETTC                Rotorua                      027 442 0234
                                                                                            Jason Rosnell                Andrew Chadwick
                                                                                            027 246 2010                 027 246 2006                 Naenae
                                                                                                                                                      David Turner
                                                                                            Takanini/ETTC                Rotorua
                                                                                                                         Mark Canning                 027 445 0955
                                                                                            Ryan Silvester
                                                                                            027 289 5576                 027 498 7136                 Waikane/Naenae
                                                                                            ETTC                         Taupo                        Nod Edmonds
                                                                                            Derek Wang                   Mel Hoverd                   027 274 2947
                                                                                            027 459 1734                 027 435 9054                 Naenae
                                                                                            Takanini/ETTC                Taupo                        Derek Rodger
                                                                                            Tony DeCleene                Mike Bush                    027 702 0414
                                                                                            021 528 840                  027 492 9019
                                                                                                                                                      Lyall Bay/Naenae
                                                                                            Silverdale/Avondale TC       Whakatane                    Gary Sim
                                                                                            Craig Petzer                 Greg Diemar                  027 246 2014
                                                                                            027 436 0293                 027 490 4302
                                                                                                                                                      Naenae
                                                                                            Glenfield/Silverdale         Gisborne/Gisborne Trade
                                                                                                                         Terry Pointon                William Hurihanganui
                                                                                            Joanne Smith                                              027 232 5283
                                                                                            027 246 2002                 027 445 4375
                                                                                                                         Hastings                     Nelson
                                                                                            Silverdale TC
                                                                                            Jon Copeland                 Ian Sill                     Rowan P Ellison
                                                                                            027 703 1076                 027 490 6529                 027 652 5271
                                                                                            Silverdale TC                Ashburton/Hornby TC          Blenheim
                                                                                            Scott Godkin                 Shaun Parker                 Stuart Washington
                             A brand new bathroom nearing completion at 27 Powell Street.   027 431 8504                 027 702 2129                 027 481 0557

                                                                                                                                                                             9
TRADE New life in old town - NZ Homebuilders and Bunnings break new ground - Page 8 - Bunnings Warehouse
scene
BUILDING

     by Rodney Dickens
     It’s getting better all the time                                                                    Number of Consents for New Dwellings
     The good news is that the good news for 2015 keeps on improving. Most fixed                                        Total Dwellings              Apartments            Non-Apartments
     mortgage rates have fallen significantly since Reserve Bank Governor Wheeler
                                                                                                                        Monthly      Annual      Monthly         Annual    Monthly      Annual
     announced a pause in the Official Cash Rate hikes in July 2014 (see the chart).
                                                                                                         Jan-13        1,312       17,143       58           1,609         1,254       15,534
     Most spectacular has been the fall in the average five-year fixed rate offered by the               Feb-13        1,542       17,481       142          1,689         1,400       15,792
     major banks that is under 6% for the first time on record. The lower two, three and five            Mar-13        1,475       17,397       16           1,540         1,459       15,857
     year fixed rates should provide a significant boost to the housing market mainly                    Apr-13        1,755       17,922       214          1,616         1,541       16,306
     because borrowers will have certainty of low interest costs for some time.                          May-13        1,971       18,521       219          1,767         1,752       16,754
     Interest rates are the most powerful driver of upturns and downturns in residential                 Jun-13        1,539       18,783       160          1,809         1,379       16,974
     building nationally. This also includes most regions. Changes in interest rates take                Jul-13        1,893       19,198       218          1,792         1,675       17,406
     around a year to have any impact. Therefore the upside in the number of consents for                Aug-13        1,748       19,433       127          1,779         1,621       17,654
     new dwellings – on the back of the fall in mortgage interest rates – should begin in                Sep-13        1,862       19,775       156          1,749         1,706       18,026
     around mid-year and continue until around March 2016.                                               Oct-13        1,891       20,027       133          1,714         1,758       18,313
     Nationally, and for most regions, the boost to residential building from lower interest             Nov-13        2,267       20,636       492          2,167         1,775       18,469
     rates will be supported by above average population growth that should reach around                 Dec-13        2,035       21,290       473          2,408         1,562       18,882
     2% nationally by mid-year. It should remain above average for 12-24 months.                         Jan-14        1,644       21,622       154          2,504         1,490       19,118
                                                                                                         Feb-14        1,768       21,848       66           2,428         1,702       19,420
     But the good times won't last forever                                                               Mar-14        1,999       22,372       186          2,598         1,813       19,774
     The housing market will remain cyclical and the good times ahead over the next 18                   Apr-14        2,082       22,699       432          2,816         1,650       19,883
     months or so will play a part in undermining future prospects. Increased residential                May-14        2,125       22,853       195          2,792         1,930       20,061
     building will contribute to a lower unemployment rate and higher labour cost inflation.             Jun-14        2,002       23,316       243          2,875         1,759       20,441
     The labour market is at the centre of medium-term consumer price inflation and                      Jul-14        2,282       23,705       373          3,030         1,909       20,675
     interest rate prospects.                                                                            Aug-14        2,059       24,016       291          3,194         1,768       20,822
     At the moment inflation is low, largely as a result of the appreciation in the exchange             Sep-14        1,895       24,049       262          3,300         1,633       20,839
     rate in 2014 and falling agricultural product prices and petrol prices. Lower consumer              Oct-14        2,152       24,310       179          3,346         1,973       21,054
     price inflation contributed to the fall in mortgage interest rates since mid-2014.                  Nov-14        2,420       24,463       474          3,328         1,946       21,225

     But the three factors that largely drove the fall in inflation are reversing. They are,             Dec-14        2,199       24,627       466          3,321         1,733       21,396

     however, of limited relevance to medium-term inflation prospects that will be                       Jan-15        1,703       24,686       314          3,481         1,389       21,295

     determined predominantly by the tightness in the labour market. Equally, while above               Source: Statistics New Zealand
     average population growth may last another 18 months or so, past experience points
     to it not continuing indefinitely.
                                                                                                                                  Mortgage Interest Rates
                                                                                                                                   Averages of the major banks
     Resource Management Act and Productivity Commission review                                           11
                                                                                                                                                                                        5 year
                                                                                                                                                                                        4 year
     The Housing Accords - either in operation or in the pipeline for nine urban centres -
                                                                                                          10                                                                            3 year
     will in time boost the supply of land for residential building. They may not, however,
                                                                                                                                                                                        2 year
     improve the affordability of section prices that much. Things are moving slowly in                                                                                                 1 year
                                                                                                           9
     making new housing more affordable, but the planned changes to the RMA and the                                                                                                     6 month
     Productivity Commission's review of council land supply policies should eventually                    8                                                                            Floating
     result in more affordable sections.
                                                                                                           7
     This will deliver an underlying upturn for residential building as distinct from the
     cyclical impacts of interest rates and population growth.
                                                                                                           6

                                                                                                           5
             Rodney runs Strategic Risk Analysis, a property and economic research company.                Jan-05       Jan-07       Jan-09       Jan-11          Jan-13      Jan-15
             Visit their website – www.sra.co.nz - to sign up for free property and economic reports.

10
e    Every issue of Trade Advice will cover a number
     of topics that effect how we as an industry
     go about our daily business. If you have any
     subjects you would like to discuss or have a
     case history you would like to share email
                                                                                                        ANDREW,
                                                                                                    TEAM MEMBER

    advice
     us at comment@tradeissue.co.nz

    TRADE

     Working with the taxman
     Death and taxes are the oft-quoted certainties in                                    with 10 or fewer employees can get a 10% discount by providing evidence about
                                                                                          good H&S practices and then passing an ACC-approved audit. The discount lasts
     life with one more enduring than the other.                                          for three years, but companies need to make a declaration they still meet the
     By Nikki Mandow                                                                      standard after the first and second years.
                                                                                          Bigger companies can get a two-year discount of between 10% (for minimum
     On a year-by-year basis, most people working in the construction and trades
                                                                                          H&S compliance) to 20% for best practice.
     sectors are not going to get the tap on the shoulder from the Grim Reaper. A visit
     from the Taxman, under the particular incarnation of ACC, on the other hand,         ACC technical advisor Rachel Massey says there are also savings to be made
     is pretty much inevitable.                                                           beyond ACC levies from companies which improve their H&S standards.
                                                                                          “By establishing good health and safety practices in your workplace, you’re likely
     That doesn’t, however, mean you should blindly accept your ACC payment.
     Taking the initiative with ACC can bring your premiums down, and ensure that         to have more motivated and productive employees, lower absenteeism rates,
     if you do have an accident, you get the money you need.                              fewer business disruptions, and reductions in the costs of sick pay and
                                                                                          temporary replacement staff.”
     EY tax partner Jo Doolan has more than 20 years’ experience with IRD and the
     accounting profession. She says too many small and medium-sized companies see
     their ACC commitments as a “passive nuisance”, whereas, in fact individuals and
     businesses need to take a hands-on approach.
     “The message is that you should be proactive. There are savings to be made
     and a better outcome to be had.” Knowing the nature of the ‘beast’ allows for some
     particular pitfalls to be avoided.

     Pitfall 1: Paying too much
     ACC payments aren’t an immoveable feast, Jo says – in several areas there’s room
     to manoeuver. Health and safety is one. ACC offers a discount for self-employed
     people, and SMEs, with good health and safely policies and practices. Companies
                                                                                                                                                                               11
Degrees of separation
     A second area, says Jo, is knowing that ACC offers a no-claims discount of 10%
     for SMEs and self-employed people with a history of low claims. On the other side,
     companies with a high claims record can pay 10% more.
     Lastly, she says, bigger companies (ones that might have a dozen or so people
     working purely in the office, doing management or administration) can reduce their
     ACC bills by splitting their company in two.
     Because ACC levies for people working on a construction site are higher than for
     those working at a desk, companies can save money by separating the two
     operations, she says, and getting a different classification for people that never
     get out of the office. “If you have a lot of people employed it can be worthwhile
     engaging with ACC and making sure the classifications are right.”

     Bigger companies can get
                                                                                          Grant says less than 10% of the SME business people he sees opt for CoverPlus
                                                                                          Extra, partly because not many people realise you can negotiate your own deal with

     a two-year discount of between                                                       ACC. Another factor putting people off is that it is expensive at the beginning (the
                                                                                          first year customers are effectively hit with a double bill because they are moving

     10% to 20% for best practice.                                                        from paying in arrears to paying in advance).
                                                                                          However he believes more SME businesses should consider switching to
                                                                                          CoverPlus Extra. Largely because of the flexibility it gives them to set ACC levies
                                                                                          either higher or lower, depending on their particular circumstances.
     Pitfall 2: Insufficient cover
     A trap for new players is not having enough cover when you first become              He gives by way of example the hypothetical case of a husband and wife team
     self-employed or set up a business, says Grant Johnston, director of                 (Harry and Wendy) running a plumbing business. Harry does the plumbing work
     Auckland-based JMV Chartered Accountants.                                            and earns $40,000 and Wendy does the books and gets $12,000. The company
                                                                                          gets $3000. If Wendy has an accident, the business won’t necessarily be
     “ACC has no history of what your income is, so even if your previous income
                                                                                          affected, but if Harry can’t work, there’s no income coming in.
     as an employee might have been quite high, they’ll start with the minimum amount.
     Although that is an advantage in terms of low premiums there can be risks of         “Ordinary ACC would insure Harry for only $40,000, and if he had an accident the
     getting a low ACC pay out, if you have an accident in the first year or two”.        pay-out would be based on that $40,000, whereas the real income loss is $55,000.
                                                                                          CoverPlus Extra allows you to increase the husband’s cover (to a maximum level),
     The minimum ACC cover for shareholders of new companies is $28,600 a year,
                                                                                          while decreasing the wife’s cover as much as possible. Furthermore, ordinary ACC
     or $550 per week. “Could you survive for the rest of your working life on this
                                                                                          pays out on 80%, whereas CoverPlus Extra pays out 100%.”
     income?” Grant asks. Similar issues arise if you’re trading as a company and have
     an accident shortly after a bad year, he says. “ACC would pay you based on the       Another advantage of the scheme is that because the level of pay-out has been
     income for your last financial year,” he says. “Low income equates to                agreed in advance, people don’t have to prove their loss of earnings when
     low ACC pay out.”                                                                    they make a claim. That makes it quicker and easier to get money out of ACC,
                                                                                          Grant says.
     He suggests one solution is switching to ACC CoverPlus Extra – a lost earnings
     compensation system where you agree in advance with ACC on how much money
     you will receive weekly if you have an accident. You then pay premiums based on      True reflections
     that figure, not on what your income might have been the year before.                ACC’s Rachel Massey also believes CoverPlus Extra is a good option when a
                                                                                          company’s taxable income is not a true reflection of its actual earnings. “For
                                                                                          example, if you’ve started a new business you may have start-up costs that will
                                                                                          offset your taxable income. Or if you have been in business a while it might be time
                                                                                          to purchase a new company vehicle or new equipment, which may offset your
                                                                                          taxable income.”
                                                                                          Jo Doolan says she is surprised how many people choose the standard ACC,
                                                                                          rather than negotiating their own deal. “CoverPlus Extra is a very good option,
                                                                                          but quite neglected.”

                                                                                          Pitfall 3: Low profit = low pay-out
                                                                                          Jo says another situation which can lead to problems with low ACC pay-outs is
                                                                                          when a company tries to minimise its profits or boost its expenses. The motivation
                                                                                          behind this is to pay less tax. For example, a husband-wife team might pay the
                                                                                          part-time partner for 20 hours a week of work, when in fact they only work five.
                                                                                          On the books, that reduces the profit, and therefore the amount of tax the
                                                                                          company pays (and the ACC levy).
                                                                                          But it might also hide the amount of earnings the couple needs if one has
                                                                                          an accident. Companies that do this, she says, are taking a gamble.
                                                                                          In short, you gain if you don’t have an accident, but if you do you may
                                                                                          end up trying to live on an unrealistic income.

12
Lured by the lifestyle
 In making the move from Scotland to Palmerston North, Peter Kynoch literally
 took the bait of the great outdoors...which also led to his own business.
 By Nikki Mandow

 When starting out in the carpentry trade in the United Kingdom, Peter Kynoch             Give thanks
 saw a future full of “putting nice houses together”. The last thing he imagined was
                                                                                          One lesson he learned from a mentor early on was to always thank his staff at the
 moving to the other side of the world to establish the Palmerston North-based
                                                                                          end of each day. He also phones clients personally to thank them when their
 company Kynoch Construction. He almost certainly wouldn’t have
                                                                                          payment comes through. This creates lasting relationships - and an opportunity to
 anticipated spending most of his time behind a computer.
                                                                                          hear any feedback before it becomes a complaint, he says.
 Entering the industry because he was good with his hands, and not particularly
                                                                                          Not that he’ll shy from a challenge but the biggest headaches he faces are the highs
 academic, Kynoch came second in his apprenticeship year, even though he failed
                                                                                          and lows of the industry. "We can all build, but it is a huge challenge to manage the
 arithmetic. "The good news for my business is my maths is fine now.
                                                                                          booms and shortages. Recessions come and you've got no control. Good
 Once you find your thing, you’re away."
                                                                                          employees – who’ve become good friends – rely on you, and through no fault of
 On the subject of moving away, he willingly admits the hunting and fishing lifestyle     your own they’re dealing with financial stress. It becomes a question of ‘how
 lured him Down Under. It wasn’t long before he got the chance to start out on his        many recessions do you have in you?’”
 own –allowing the ‘call of the wild’ to be answered when needed.
                                                                                          Peter reckons he has at least one more. He may find himself sharing it with his son,
 "I was working in Palmerston North as lead carpenter on a site, and was asked            currently exploring carpentry through the Gateway programme at school. "He'd have
 to fit a lock for the company contracting on the site next door. Though my employer      to do his apprenticeship with someone else first, and then come back with his
 wouldn't have approved, I fitted it. The company offered me a box of beers to            own new ideas and ways of doing things.”
 say thanks, and I said no – just give me a crack at your next contract.
 They did, and before long Kynoch Construction was born".
 The company began in the 1990s as a labour-only company, supplying men to                Peter’s principles for success:
 big commercial building sites. Later it developed into a contractor for large-scale
 commercial work, sometimes taking on the odd home that was outside the                   1. If you’re new in the business, choose your employer well. Don't just
 scope of residential builders.                                                              take the first person who offers you a job. It has to be a win-win situation.
 When the last recession hit, Peter saw an opportunity to enter the residential market,   2. Get stuck into the job. Aim to do it better than the person beside you.
 a move which also provided him with a platform for apprenticeship training.                 A mentor once told him: “Do everything 5% faster and better than everyone else."
 "We've always been big on apprenticeships and training. I get a lot of pleasure out      3. When you have your own business, live within your means.
 of it. It's all about training good industry professionals and turning out good              When you’re doing well, "keep your barn full", because no matter how good
 men into society."                                                                           it seems now, it will get tough.
 In November, Kynoch Construction apprentice Takey Boli was one of three to               4. Be trustworthy, and loyal. Create long-term relationships with
 win a Palmerston North Building and Construction Industry Training Organisation              subcontractors and suppliers. "We don't shop around for price; we work
 Rookie of the Year Award. Burmese-born Boli arrived here as a refugee with                   with the same people for years. Our regular clients know the team who
 no English seven years ago.                                                                  will be working for them."

"It's important to give staff
 more than a pay cheque"
 Wise investment
 "It's important to give staff more than a pay cheque. We like to help them in other
 ways and with other training such as accounting and ethics. We want them to know
 how to get through life and do it properly."
 Clearly people working with him are returning the favour. Peter now has 38,
 including some who have been with his business for 10-15 years.
 "A lot started with us as trainees, went away to do their OE, and came back.”
 Kynoch reckons leadership isn’t hard, if you’re fair and honest.
 "Lead from the front. You have to be respected and can only get it by earning it,
 not demanding it."
 Equally important is putting the right people in the right place and letting them do
 their job. "Let your leaders lead, you don't have to do everything yourself. You’ve
 chosen your people well, they’re good competent men, so let them go and do it."

                                                                                                                                                                                  13
The green, green buildings of home
     The world is moving fast to clean and green. Buildings are no exception.
     So what are the opportunities for those with a penchant to build?
     By Lynda Brendish

     People are willing to pay a premium for buildings that are environmentally friendly
     and sustainable. Those in the know in New Zealand suggest builders and ‘tradies’
     would do well to tap into this potentially lucrative market. For a number of reasons.
     When it comes to housing, Kiwis are dealing not only with a short supply and high
     prices, but an inventory that is largely drafty, inefficient, and cold. Sustainable,
     or 'green' building is the term given to structures, both commercial and
     residential, that buck this trend.
                                                                                             Sustaining credibility
     Green building practices are generally defined by energy and resource efficiency,
                                                                                             There are several things builders can do in their own practices to keep building
     reduced environmental impacts, and other planet friendly criteria.
                                                                                             sites and operations greener. That generally involves limiting waste so it is wise to
     “Green building involves approaching the planning, design and build to achieve          purchase only as much product as needed where possible, avoid offcuts, reuse
     better outcomes for the environment and people,” says Clare Gallagher, senior           leftover supplies, and other such safeguards. Source supplies locally, where
     technical coordinator at the New Zealand Green Building Council (NZGBC).                possible, and from independently-certified sustainable suppliers.
     “For an ideal outcome, all members of the project team need to work together            The NZGBC offers independent ratings for both residential and commercial
     and think about the broader picture and how they’re contributing to it. In terms of     buildings – these being Homestar and Green Star respectively. Homestar rates
     practice, it means good site management, thinking differently about construction        homes on a scale of 1 to 10 and Gallagher says the average new home built to
     – for example, to fit in extra insulation in houses – and collaborating with others.”   current building codes rates around a 4. However, many builders around the
     Energy efficiency and sustainability in home building is more than just a trend or      country are commonly achieving 6 Homestar ratings or higher.
     a superficial nicety. Various research studies show sustainably-built homes are         Meanwhile, Green Star rates non-residential buildings, such as schools, offices and
     healthier to live in, leading to lower rates of asthma and other illnesses.             industrial buildings, from 4 (best practice) to 6 (world leadership). There are 111
     Sustainable buildings are also generally better for the environment. According to       Green Star buildings across New Zealand.
     a 2006 Ministry for the Environment (MFE) value case they are found to “reduce          “The important thing for builders to understand about these ratings is that they’re
     waste and are much more efficient in their use of key resources such as land,           independent verification that buildings have reached a certain level of environmental
     energy, water and materials.”                                                           performance,” says Gallagher. “Without a rating, there’s no guarantee or evidence
                                                                                             to back up sustainability claims.”

     “Green building involves                                                                Although NZGBC rates buildings, rather than businesses, individuals can be
                                                                                             accredited as Green Star or Homestar professionals – but that doesn’t mean every

      approaching the planning,                                                              project they work on will be rated. What it does do, however, is give customers the
                                                                                             assurance that a builder is knowledgeable about green building practices,
      design and build to achieve                                                            and backed by an independent body.

      better outcomes for the
      environment and people”

     Green is growing
     If the case for healthy occupants and a healthier environment doesn’t sway you
     then economic factors just might. Overseas survey data shows homeowners are
     increasingly seeking energy efficient and sustainable homes with findings that
     suggest 88% of homeowners are willing to pay more for those features.
     The MFE’s value case suggests sustainably-built office buildings may have a
     land value 40% more than that of a conventional building. “In commercial
     building,” says Gallagher, “figures regularly show Green Star-rated buildings
     outperform their un-rated peers in terms of asset value and occupancy.”
     While sustainable buildings start at the design phase, Gallagher says it’s
     up to builders and tradespeople to understand these principles and make sure
     they’re delivered. A builder working on a green project should understand the areas
     where they will have an impact,” she says. “For example, separating waste on site,
     and using products that have an environmental certification, are important.”

14
Restricting restricted
building work
If you’re a Licensed Building Practitioner, chances
are you’ll know a thing or two about Restricted
Building Work, also known as RBW.
By Louise Swann

RBW relates to small to medium residential buildings that, in particular:                  or not a Council can include a condition whereby a Record of Building Work be
• Contain two or more residential units or residential facilities                          provided before the CCC could be issued.
• Do not contain commercial units or facilities                                            The definition of RBW is covered by an Order in Council and since its first
• Have a maximum height of less than 10m                                                   introduction it has been amended. As of 4 December 2011 RBW is limited to work
                                                                                           related to a house, or a small to medium apartment building, that is:
RBW became part of NZ building law in September 2011. Its purpose was to ensure
that critical work relating to design or construction was undertaken, or supervised,       1. The design of fire-safety systems.
by ‘competent people’ in the form of a Licensed Building Practitioner or LBP. Initially    2. T he design work relating to the primary structure or external moisture
the focus was on the primary structure and external envelope of the building. For             management systems.
those with an interest in the building code, this related to compliance with               3. The construction, or alteration, of
B1(structure) and E2 (external moisture). Since then the scope of work covered has             • The primary structure, or the external moisture-management system, and is
been increased to include fire safety systems (referred to as the C clauses).                     covered under the following types of building work: bricklaying or block laying,
                                                                                                  carpentry, external plastering, foundations, roofing, and
                                                                                               • Is covered by an LBP license class as defined by law.
Correct or incorrect,                                                                      While the installation of tanking is building work, it is not covered by a license class

that is the question                                                                       and so cannot be RBW. The fact that tanking is not RBW does not negate the
                                                                                           obligation to ensure that all building work complies with the building code as
                                                                                           required in section 17 of the Act. Plans and technical specifications need to be
With the introduction of RBW came two Memoranda: the Certificate of Design Work            provided to Council when applying for consent.
and the Record of Building Work. The law defines them and this includes the format         And, as for whether or not a Council can apply a condition whereby a
of the memoranda. In fact these two memoranda have more status in law than any             RBW memorandum must be provided prior to the issue of a CCC. This is a little
producer statement.                                                                        more difficult.
Despite the information provided by the Ministry of Business, Innovation and
Employment, it would be fair to say that not everyone knows what is RBW and what           Avoid confusion
is not. The case in point is this particular determination – two in fact – that covers a   We all think of Council as one entity but in Building Act issues a Council is actually
particular property in Wellington.                                                         two organisations. The Building Consent Authority (BCA) deals with matters relating
The first determination arose because Wellington City Council issued a Code                to building consents and CCCs, whilst the Territorial Authority deals with matters
Compliance Certificate (CCC) with the condition that the tanking was excluded              relating to RBW. The person behind the desk might look the same, talk the same,
because a Record of Building Work had not been provided by the LBP. The Council            even wear the same clothes but they might be working for different organisations.
considered it was correct to issue the CCC in this way because, at the time the            So RBW and building consents/CCC are managed by different organisations using
consent was issued, documents showed that Council required a record of building            parallel processes. As ridiculous as it seems, the Council acting as a BCA cannot
work before it would issue the CCC.                                                        refuse to issue a CCC because a RBW memoranda has not been provided.
                                                                                           Furthermore it cannot make the issue of a CCC conditional on the provision of a
Tanking it                                                                                 RBW memorandum.
The owners considered that this was not the case arguing that the tanking had been         As confusing as all this sounds the key thing is to be able to operate in the
installed by a certified applicator, the applicator had provided the manufacturer’s        system. With that in mind here is my advice.
warranty and the Council had gone out on site and inspected and passed the
                                                                                           Be knowledgeable about what is, and what isn’t, RBW. Be knowledgeable about the
installation of the tanking. Furthermore the owners had been advised by MBIE
                                                                                           demands Councils can, and cannot, make. Most importantly make sure you have all
that tanking was not considered RBW.
                                                                                           the discussions/arguments before the consent and document stage on what is
This determination concluded that the owners were correct and that the CCC should          agreed. This will then ensure that when the building work is finished you won’t be
be reissued without the exclusion of the tanking.                                          having the ‘tail end Charlie’ scraps with Council.
However, the determination also noted that the lack of RBW documentation –                 In short, be knowledgeable, be consistent, document what is agreed and then stick to it.
namely the memoranda – does not play any part in whether the Council is satisfied
on reasonable grounds that the building work complies with the building consent.
Put another way, the lack of a Record of Work does not provide grounds to                    Changes are happening to the LBP Skills Maintenance
refuse to issue a CCC.                                                                       programme from 2 November 2015.
In response to this decision, Wellington City Council applied for another                    Find out more at bunnings.co.nz/trade/trade-central
determination. It wanted to establish whether or not tanking was RBW and whether

                                                                                                                                                                                      15
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                                                  Deck Chair Joist Mount
                                                  A rubber mount specifically designed to support floor joists and provide drainage over
                                                  membrane decking or concrete floors NZ Design App No NZ419836

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