TRADE - Bunnings on the build Check out our two new Trade Centres See page 8 - Bunnings Warehouse
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TRADE
NOVember 2014
Bunnings on the build
Check out our two new Trade Centres
See page 8
The professional's choice
for your next ceiling project
The realities of risky business
Protecting yourself
The good oil on governance
Governance is not just for big businesses
Earn learning points
WITH TRADE ISSUE
Ending on a high note
LBP competencies covered in this edition
With the year end fast approaching, the country as a whole, and the • Comprehend and apply knowledge of the regulatory
building sector in particular, is ending on a high note with every reason environment of the building construction industry
to believe that next year the growth will continue. • Organise and manage building projects
• Establish design briefs and scope of work and prepare
This issue we take a particular look at the ‘business’ side of building. preliminary design
In particular how behaving like a ‘big time’ operation can help improve • Apply technical knowledge of construction methods and practice
• Demonstrate knowledge of current building and trade practice
#
your bottom line, whatever your size. We also look at how following
best practice can help sharpen your operational game and how, in Once you have read this edition
simple terms, it relates to running an efficient, sustainable and of Trade Issue remember to
keep a record of your learning.
profitable enterprise that produces a good return on investment.
1 hour of learning = 1 point
You might find some of the suggestions and examples that feature are
November 2014
well worth taking onboard.
welcome
Planning for the future is another subject Trade Issue investigates this
edition. We look at how applying tried and true principles to run your Contents
business can help avoid some of the perils and pitfalls that poor (or total
lack of) planning might produce. We also look at workplace dangers and 04 New Products
the importance of protecting yourself and your team.
06 Building Essentials
We feature the somewhat unusual, but intriguing, case of a building
sitting over two titles and what happens when one side needs work 10 Building Scene
done on it.
11 Trade Advice
Plus, you’ll find out about the next two Bunnings Trade Centres, when
they are open and what that means to you. 14 Determination
We hope you find all this a great read. Till next time…
Des Bickerton
Commercial Manager 08 Bunnings
on the build 10 Building
Scene
13
Booming on
14 Building that
straddles two
sites
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.
2
The professional’s choice for
a quality ceiling finish
Here’s why you should choose GIB® products and systems for your next ceiling project.
A superior finish with stronger 13mm GIB® plasterboard
• Easily installed at 600mm
• Use less battens, screws and glue compared to fixing battens at 450mm centres
• Save up to 3 hours labour on the average job
• Helps achieve a better quality, flatter finish
A straighter ceiling with GIB® Rondo® Metal Ceiling Battens
• Simple systems available, no matter what the design or situation
• Holds no moisture so will not bend, twist or warp
• Less movement and fewer problems
• Minimises the chance of cracking, popping and peaking
Note: Given the wet humid conditions prevalent across many parts of New Zealand ceiling sag can be amplified. To meet
the high expectations of the New Zealand market, Winstone Wallboards ceiling recommendation is 10mm plasterboard
at 450mm batten spacing and 13mm plasterboard at 600mm batten spacing.
If you need more information about ceiling installation, call the GIB® Helpline on 0800 100 442.
Spend $1500 on 13mm GIB® Standard and GIB®
Rondo® metal battens and go into the draw to win
1 of 30 Red Balloon adventure
vouchers valued at $500 each
Terms and Conditions: Promotion runs from 1st – 30th November 2014. To be eligible for the prize you must spend $1500 (excl. GST) or more on 13mm GIB®
Standard and GIB® Rondo® metal battens at a Bunnings store. All eligible customers will be drawn at the conclusion of the promotion and the prize will be sent
during the month of December 2014. There are 30 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 pick-up at the time of purchase.
AEG’S BRUSHLESS KIT.
NO MAN WAS MEANT TO WIELD THIS MUCH POWER
POWERTOOLS
Online registration required.
Brushless Impact Driver. Brushless Hammer Drill. Brushless Grinder. 2 batteries & charger. $799
new
TOOLS OF THE TRADE
TECH SPECS
Masons Dry FIx DPC
• Impact resistant
• Black flexible polyethylene film
• Low slip with a kinetic coefficient of friction
• Non-slip as product is double embossed
• Roll core made from recycled plastic materials
• Codemark certified
Masons
$
From13 03 EXCL. GST
SKU00279108
Rhino DUAL PURPOSE LADDER
Dry FIx DPC 2.1-3.9M 150KG LOAD CAPACITY
• Aluminium
• DRY FIX is a Polyethylene Damp course and
• 12.16kg weight
Concealed Flashing barrier of impervious material, • Width 600 x height 2040 x depth 1355mm
built in to prevent moisture movement to any part of a • Minimum ladder length 2.1m
building requiring protection. It is used as a waterproof • Maximum ladder length 3.9m
strip barrier around an opening in a wall or door or at • Maximum reach 4.5m
a roof junction.
• Approved for use for separating timber, wood-based Everdure (8 Function Oven)
$
22522
products and metal from concrete, masonry or brick; • Oven size: W595mm x H595mm x D570mm
• Oven cutout Size: W560mm x H600mm x
and, as a moisture barrier and flashing in masonry EXCL. GST
D555mm
veneer constructed in accordance with NZBC • 3200W
SKU00313858
Acceptable Solution E2/AS2 and NZS 4229. • 230-240V 50Hz
Everdure (GLASS-CERAMIC HOB) RHINO
Everdure • Cooktop size: W590mm x D520mm x H41mm DUAL PURPOSE LADDER
Oven 8 Function and • Cooktop cutout size: W560mm x D490mm x
2.1-3.9M 150KG LOAD CAPACITY
Glass-Ceramic Hob Combo H25mm (min)
• 6000-6500W • 150kg industrial load rating
• European design and manufacture.
• 230-240V 50Hz • Cross braced spreader for premium stability
• 8 function oven, 55L.
• Double sided
• German Schott Glass hob.
Emilio • Use as an A-frame or straight ladder
• Full touch control. Frameless Sliding Door
• Fast heating and safety features. • 8mm toughened safety glass (NZ Standards AS/
NZ2208)
• 5 year warranty
• Polished alloy fittings
$
86868
• Smooth roller system
• Available as a 1200 x 900mm two sided enclosure
EXCL. GST
with left or right hand entry
SKU00220633
• Tapware not included
Emilio
$
156347
SKU00268202A
EXCL. GST
Frameless Sliding Door
• Contemporary frameless glass shower enclosure with sliding door.
• Two sided shower enclosure available with return panel only or as a
complete package. Complete package includes Emilio return panel with
an acrylic wall liner (choose flat or moulded) and acrylic shower tray.
• Functional smooth roller system effortlessly opens glass sliding door.
4
Quickdam
Flood Barriers & Sandless sandbags TECH SPECS
• It is a great alternative to sandbags as it is very fast and easy to install, can be used on a range of Quickdam Flood Barriers AND
applications and can be installed by most individuals in a matter of minutes. Sandless sandbags
• Quick Dam is a great product for those looking to protect their home, business and construction sites • Compact and lightweight
from water and flood damage. • Reuseable for up to 8 months
• Safe non hazardous and non toxic material
• Quick Dam simply works by absorbing water, swelling, and creates a dam before it becomes a problem. • Naturally decompose overtime and
The absorbent powder contained in each bag expands quickly when activated by water, causing the bag environmentally friendly
to swell and a water barrier to be created . • Contains an absorbent powder that gels water
• Needed for site run-off as per local council requirements NZ wide. • Lasts up to 8 months with continuous use
kincrome X Force Pliers
Available in the below sizes:
• 200mm Combination Plier
• 200mm Diagonal Cutting Plier
• 200mm Long Nose Plier
The HRV
• Certified (2013) to NZ product standard AS/NZS
60335.2.80
• Proven algorithm technology to control fan speed
and achieve HRV system benefits
• Air volume of fan is 780m3 per hour
• Plastic fanbox design minimises noise, and
maximises airflow (68 decibels at fan) Noise level
less than 40 decibels at 1m below diffuser*
$
4346 EXCL. GST
SKU01090867
$
3042 EXCL. GST
SKU01090868
aeg BRUSHLESS GRINDER KIT
• 18V Brushless angle grinder
• 2 x 4.0Ah Pro lithium batteries
AEG
• 18V Multi chemistry charger
BRUSHLESS GRINDER KIT • Carry bag
• Powerful 18V brushless motor delivers exceptional runtime and power performance over brushed models.
• Brushless performance likened to AC power.
• Tool free burst resistant guard for ease of guard adjustment and user safety.
• Current Overload Protection ensures no damage when over working the tool.
• AVS – Anti Vibration System side handle reduces user fatigue.
$
43391 SKU00278920
EXCL. GST
$
3042 EXCL. GST
SKU00278028
SKU00278031
SKU00278034
HRV
The HRV is designed to automate
the ventilation of indoor areas
Kincrome • Maximise ventilation (fresh filtered air, drying effects,
X Force Pliers mould prevention).
• Hi-leverage pivot pin design for twice the cutting • Supplies fresh filtered air to comply with building
and grip power of conventional pliers. code standards.
• Forged chrome nickel steel head. • Utilise thermal differences between inside air and fresh
• Chrome vanadium steel. air to improve heating and cooling energy efficiency.
• Tough hardened jaws. • Installed by HRV accredited and authorised staff only.
• Triple injection moulded soft grip handles. • 3 year Warranty on Product and Installation. $
3150 EXCL. GST
Available through Special Order
SKU00278113
5
essentials
BUILDING
EvEry Day Low priCES on EvEryThinG yoU USE EvEry Day
350mm Folding
Bolt Cutters 8lb
Compactable. High Sledge Hammer
strength. Non-slip handles. Fibreglass anti-vibration
SKU00256548 handle. SKU00312737
Laser Level
$
52
EXCLUDES GST
EXCLUDES
09
GST
with Tripod
Cross and individual
laser line. Self-levelling.
10m range. SKU00275105
$
19913
EXCLUDES GST
$
6955
EXCLUDES GST
Super Yankee
8m Xtreme
Tape Measure
SKU00162394
$
34
EXCLUDES GST
70 Toolbox
1000 x 550 x 525h mm.
SKU00678819
$
233EXCLUDES GST
91 Tool Belt
Left and right hand
available. Accessories not
included. SKU00108902
$
199 EXCLUDES GST
13
Tradesman
Trailer
166 Piece
$
173 04 $
1607 83 $
65 04
1320 x 2500mm.
Socket Set
1200kg load
capacity. Galvanised.
Proline
1/4, 3/8 & 1/2". Fully assembled. 34 Stapler
SKU00228312 EXCLUDES GST SKU00133510 EXCLUDES GST SKU00457256 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. Shelf prices may be lower than advertised to ensure lowest prices every day.
s 50L Air
Compressor
1800W. 2.5HP.
SKU06290392
$
242EXCLUDES GST
61
18V
2 Piece
Combo Kit
Includes drill driver,
impact driver,
charger & 2x 1.5Ah
lithium ion batteries.
SKU00260934
$
34696
EXCLUDES GST
Waterblaster
205cc. 3000psi.
SKU00241356
$
86783
EXCLUDES GST
45cc
$
258 26 $
346 96 $
21652
Petrol Tradesman
18V Drill Driver Chainsaw HD Wheelbarrow
System compatible. 460mm bar. 100L galvanised tray.
SKU00248986 EXCLUDES GST SKU00277728 EXCLUDES GST 8" wide tyre. SKU00309458 EXCLUDES GST
17kg Leaf Rake
125mm Demolition SKU00313097
127 147652 1461
Angle Grinder Breaker
850W. 4 cutting discs,
4 grinding discs, $ 83 1500W. 30mm
Hex shank. $ $
1 diamond wheel. Anti-vibration.
SKU00273018 EXCLUDES GST SKU00253045 EXCLUDES GST EXCLUDES GST
12 Piece
Demolition Recip
Saw Blade Kit
SKU00301986
$
564 35 $
303 48 $
60 85
Mitre Saw & 18V Multi
Stand Combo Function Tool
2 X 2.0Ah lithium ion
SKU00258124 EXCLUDES GST batteries. SKU00254295 EXCLUDES GST EXCLUDES GST
We reserve the right to restrict the purchase of commercial quantities. All prices are exclusive of GST. See trade desk for details. Prices valid to 31st December 2014.
Bunnings on the build
With the building boom in full force, Bunnings Trade increases its
presence in two key markets.
With Auckland and Christchurch leading the charge in the resurgence of the Continued commitment to the regions
building sector, it makes sense that Bunnings Trade is beefing up its profile, and
The Trade Centre will be significantly enhanced compared to the old premises.
offerings, in these regions.
The development comprises approximately 2,590m2 of warehouse space and
Construction is now complete on the new Bunnings Trade Centre at 644 Halswell a 5,730m2 yard area to service the trade and construction sectors.
Junction Road, Hornby. It is purpose built and designed to replace the existing
A focus on ease of access and a quality on-site operation will continue to be
Hornby Trade Centre.
supported by a timely and effective direct-to-site delivery service. The facility will
Bunnings General Manager, Jacqui Coombes, says the initiative is a commitment
also boast 17 on-site car parks and a convenient warehouse ‘drive through’ to
to both the region and the level of service, and offer, for Cantabrians. “Service is a
speed up product pick-up and vehicle loading.
cornerstone of our brand and we’re always on the lookout for ways to further satisfy
our customers. There is no question our new Hornby Trade Centre will be a
positive addition to our existing store network in Christchurch. The opening is also “Team members from the existing Trade
well timed to coincide with the city rebuild coming really on stream.” Centre are being relocated to the new
site ready to hit the ground running...”
Hornby Trade Centre site
“Team members from the existing Trade Centre are being relocated to the new site
ready to hit the ground running, providing customers with the expert advice and
support that they expect from our team of red shirts.”
Meanwhile, to the North, another Bunnings Trade Centre is set to open on what
many say is literally a very ‘sweet’ spot. Located on what was once Cadbury’s
confectionary factory site, the new Bunnings Trade Centre at 494 Rosebank Road,
Avondale, is set to open prior to Christmas this year.
Auckland features a network of Bunnings stores and, says Jacqui Coombes,
Avondale is an important part of the plans to offer our trade customers a choice of
locations and options.
“This new Trade Centre in Avondale will enable us to provide a significantly
improved offer in the West Auckland area. Its layout and location supports and
complements our current Trade Centres in East Tamaki and Silverdale.”
The best service our red shirts can deliver
“The new development will comprise approximately 2,935m2 of warehouse space
and a 2,682m2 yard area. A focus has been on creating a destination capable of
8
Get to know your
Account Managers
Profiling Scott Scampton
Scott has been with Bunnings for 10 months but he has
a wealth of experience from his 12 years in the construction
industry across Canada, Australia and now New Zealand.
His spare time is spent with kids and renovating the home.
Helping people build their homes is the highlight of his
working day and having a great boss helps!
Scott Scampton, Whangarei
Phone 027 499 0812
Bunnings Trade Account Managers
Area Sales Managers Silverdale Trade Centre/ Hornby Christchurch
Glenfield/North Shore Trade Centre
Matt Cardey Jon Copeland Martyn Hugo
027 652 5268 027 703 1076 027 240 8950
Scott Godkin Chris Sunman
Tim Trowell 027 431 8504 027 260 2468
027 200 2034
North Shore/Glenfield Darren Payne
Forrest Jin 027 503 6046
Avondale Trade Centre architect's perspective Troy Taylor 027 484 2591 Dunedin
027 200 2032 Aubrey Gray
Hamilton/Tokoroa/Putaruru
Alan Miller 027 459 1738
Gareth Osborne 027 499 7165 New Plymouth/ New
027 839 0109 Plymouth Trade
Hamilton
Darren Mayo Danny McVicar
Area Account 027 246 2008 027 246 2011
Managers
Cambridge Hawera
Bruce Robertson Grant Cambie
Whangarei/Kauri 027 445 2917
Scott Scampton 027 475 8661
027 499 0812 Te Aroha/Paeroa Feilding
Richie Blake Kevin Walpole
East Tamaki 027 446 1786
027 230 8569
Trade Centre/Henderson
Denis Richardson Whangamata Palmerston North
027 498 1948 Barry Leighton Vanessa Linton
027 493 2018 027 445 0957
Henderson/Mt Roskill Howard Yates
Greg Dalley Waikato 027 246 2012
027 200 1964 Alan Miller
027 499 7165 Naenae
East Tamaki Matt Jenkins
Trade Centre/Botany/ Te Puke 027 243 1932
Mt Wellington Dean Cubis
Caleb Steunebrink 027 487 2697 Heinz Baker
027 498 1942 027 442 0234
Mt Maunganui
Mark Haddon Dean Hollamby David Turner
027 453 7211 027 228 6462 027 445 0955
Blair Wilcock Roger Corrin Nod Edmonds
027 436 9902 027 246 2004 027 274 2947
Rotorua Brian Williams
East Tamaki 027 442 5467
Andrew Chadwick
Trade Centre/Manukau 027 246 2006
Wini Ryan Gary Sim
027 246 2003 Mark Canning 027 246 2014
027 498 7136 Derek Rodger
Sam Marcel
027 498 1796 Taupo 027 702 0414
Hornby Team Members Mel Hoverd CJ Hurihanganui
East Tamaki 027 435 9054 027 232 5283
Trade Centre/Papakura
holding large volumes of core building products for our trade customers, supported Mike Bush Blenheim
Jason Rosnell
by a timely and effective direct to site delivery service.” 027 492 9019 Stuart Washington
027 246 2010
Whakatane 027 481 0557
The site will feature 28 onsite car parks and a convenient warehouse drive through Ryan Silvester
Greg Diemar
027 289 5576
with a further 8 parking spaces to help facilitate speed of product pick-up and 027 490 4302
Tony DeCleene
vehicle loading. 021 528 840 Gisborne/Gisborne Trade
Terry Pointon
Once complete, the trade centre will employ 20 team members. The focus is on East Tamaki Trade Centre 027 445 4375
Derek Wang
assembling a team with strong trade industry experience to ensure that customers 027 459 1734 Hastings/Napier
Ian Sill
are provided with the expert advice and support they’ve come to expect. 027 490 6529
Glenfield/Silverdale/
North Shore Ashburton/Hornby
Joanne Smith
Christchurch Trade Centre
027 246 2002 Shaun Parker
Pukekohe 027 702 2129
Carla Hira
027 246 2015
9
scene
BUILDING
by Rodney Dickens Number of Consents for New Dwellings
Total Dwellings Apartments Non-Apartments
Surging toward the sustainable
Monthly Annual Monthly Annual Monthly Annual
An anticipated pause in the Reserve Banks' Official Cash Rate hikes should hold an Jan-12 1,098 13,893 198 1,264 900 12,629
upside. The evidence is in as the accompanying chart shows—namely that economic Feb-12 1,204 14,124 62 1,237 1,142 12,887
growth has been allowed to head above the 2.75% "sustainable" rate consistent with Mar-12 1,559 14,596 165 1,362 1,394 13,234
inflation target. Leading indicators of economic growth have fallen in response to the four Apr-12 1,230 14,899 138 1,466 1,092 13,433
OCR hikes and falling export prices. Indicators, however, that growth will slow enough to May-12 1,372 15,132 68 1,468 1,304 13,664
avoid the need for more OCR hikes next year. Jun-12 1,277 15,414 118 1,526 1,159 13,888
Any hikes will drive up the cheapest available mortgage interest rates creating a negative Jul-12 1,478 15,722 235 1,631 1,243 14,091
impact on new dwelling consents in 2016. Nevertheless, while the pause button is on, Aug-12 1,513 15,726 140 1,592 1,373 14,134
several factors should drive more upside in the national level of residential building. Sep-12 1,520 16,000 186 1,656 1,334 14,344
Oct-12 1,639 16,401 168 1,735 1,471 14,666
Key factors include:
Nov-12 1,658 16,675 39 1,665 1,619 15,010
• Population growth that could reach 2%;
Dec-12 1,381 16,929 232 1,749 1,149 15,180
• An apartment building boom in Auckland;
Jan-13 1,312 17,143 58 1,609 1,254 15,534
• Housing Accords starting to have an impact;
Feb-13 1,542 17,481 142 1,689 1,400 15,792
• Continued retirement home building;
• Increased social housing construction; Mar-13 1,475 17,397 16 1,540 1,459 15,857
• Canterbury residential rebuilding; Apr-13 1,755 17,922 214 1,616 1,541 16,306
• More people being eligible to use KiwiSaver money to build; May-13 1,971 18,521 219 1,767 1,752 16,754
• Increase in the Government first home buyer grant next year. Jun-13 1,539 18,783 160 1,809 1,379 16,974
Jul-13 1,893 19,198 218 1,792 1,675 17,406
Auckland will benefit the most. Some parts of the country to a lesser extent while some
Aug-13 1,748 19,433 127 1,779 1,621 17,654
face the challenge of falling existing house prices (e.g. Rotorua, Wanganui, West Coast
Sep-13 1,862 19,775 156 1,749 1,706 18,026
and Southland).
Oct-13 1,891 20,027 133 1,714 1,758 18,313
Government initiatives on the go Nov-13 2,267 20,636 492 2,167 1,775 18,469
National’s decisive victory means full steam ahead with initiatives to boost the level of Dec-13 2,035 21,290 473 2,408 1,562 18,882
residential building. This will include: Jan-14 1,640 21,618 154 2,504 1,486 19,114
•Housing Accords for the five areas where Accords are planned but not in place yet; Feb-14 1,768 21,844 66 2,428 1,702 19,416
• Adding to the list of Accord areas (e.g. Hamilton); Mar-14 1,999 22,368 186 2,598 1,813 19,770
• Increased building of social housing; Apr-14 2,082 22,695 432 2,816 1,650 19,879
• More measures to streamline resource applications for subdivisions and other May-14 2,125 22,849 195 2,792 1,930 20,057
RMA reform. Jun-14 1,950 23,260 197 2,829 1,753 20,431
Jul-14 2,282 23,705 373 3,030 1,909 20,675
Clear beneficiaries include Auckland, Christchurch and possibly from the Wellington,
Aug-14 2,022 23,979 254 3,157 1,768 20,822
Tauranga and Western Bay of Plenty Accords. However, for some builders, Government
initiatives will mean more competition for end-user demand rather than increased
8 Annual GDP Growth 8
customers. To some extent this will change what is built and which firms undertake the
building. 6 RBNZ estimate of the 6
sustainable rate
Mixed prospects for Canterbury rebuilding 4 4
The upturn in Canterbury new dwelling consents has stalled for now at around 600 2 2
consents per month, but consents for non-residential buildings are in the early stages of
0 0
the upturn.
-2 -2
* Rodney runs Strategic Risk Analysis, a property and economic research company. -4
Mar-91 Mar-94 Mar-97 Mar-00 Mar-03 Mar-06 Mar-09 Mar-12 Mar-15
-4
Visit their website – www.sra.co.nz - to sign up for free property and economic reports.
10e 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
us at comment@tradeissue.co.nz
TAJINDER
TEAM MEMBER
advice
TRADE
The realities of risky business
With the construction sector in the Top Five of
workplace fatalities the question is. "Can I get
insurance to protect against breaches in health
workplace bullying is also considered a hazard. Failure to prevent it could be
construed as a breach of the law.
Changes to the current Health & Safety in Employment Act are expected later this
year when the Health & Safety at Work Act comes into effect. Among other things,
and safety law?" this will:
By Ben Rickard • Increase penalties.
• Clarify that your responsibility is not just for your employees, but also for
Enforcement actions in the construction industry for inadequate height protection
sub-contractors, employees of sub-contractors, hired labour, apprentices,
have risen nearly 500% in the past three years. Ironically prosecutions have fallen
workers on trial and volunteers.
90%.* This is attributable to a number of factors but kudos must be given to the
• Highlight that you’re also responsible for these groups wherever they go when
Falls From Heights campaign and more proactive action by inspectors. Despite the
they are at work; for example if they need to drive down to the merchant to pick
good work and efforts people are still dying in the workplace and the construction
up some materials.
sector has more than its share. The vast majority of builders we deal with recognise
• Put more onus and legal requirements on managers and company directors to
the importance of good health & safety practices. However, most also subscribe to
manage risks and keep their workers safe.
one or more of the following views:
Defending actions
• Regulation is over the top.
Although the law specifically states that you can’t insure against fines under health
• Compliance costs are a heavy burden on a small business.
and safety legislation, you are able to get insurance for the legal costs of defending
• There’s no personal responsibility anymore. an action, and for reparation payments that may be awarded.
Whether you agree with any or all of the above, the reality for everyone in the Statutory Liability Insurance
construction sector is that ensuring workplaces are safe is not negotiable.
Known as statutory liability insurance, it provides protection for:
Unfortunately, despite the best intentions of employers, sometimes things happen.
If an injury occurs and a WorkSafe NZ investigation determines that it could have • The legal defense costs associated with breaches of most legislation, including
been prevented, you could face a fine and/or prosecution. Under the current law, the Building Act, Consumer Guarantees Act, Fair Trading Act, Resource
11Management Act, Health & Safety in Employment Act and others (but excluding Add to all of this the fact that new fines penalties are regularly being
criminal and tax statutes). introduced, such as:
• The costs of an investigation or inquiry. • Building without a written contract when required – maximum fine still
• Fines or penalties you may be required to pay under these acts (except for health to be confirmed.
and safety fines). • Failure to supply a pre-contract declaration – maximum fine still to be confirmed.
In addition to legal and investigative costs, examples of fines you may be exposed As we become more regulated (for all intents and purposes this continues to
to include: look like a one way train) and as enforcement of this regulation increases,
• Building without a consent when required – maximum fine $200,000. it’s worth thinking about having insurance to cover this risk.
• Complaint to the Building Practitioners Board – maximum fine $10,000. Ben works for Builtin New Zealand, a specialist in insurance for the
construction industry.
• Breaching the Resource Management Act – maximum fine $600,000 plus
$10,000 per day. *Otago Daily Times, OIA request to WorkSafe NZ
The good oil on governance
It sounds like something reserved only for big business board rooms, but Governance is critical for
small businesses in the building and trades industry.
By Lynda Brandish
Good and governance are two words that often come together when applied to That’s what got Aaron Rink’s attention to the whole subject area. As owner of CF Reese
successful business operations. According to William Whittaker, CEO of the Institute of Plumbing, a firm he and his wife bought from its founder after rising through the
Directors (IOD), good governance means running an efficient and sustainable ranks, Rink was plowing ahead to grow the business. He knew he had the
business that delivers shareholder value on a sustained basis. As leader of a entrepreneurial spirit to do so, but he felt he was lacking some of the other necessary
7,000-strong voluntary professional association for people in directing roles, or with a skills. A business mentor turned him on to the idea of governance – so Rink sought
strong interest in governance, he knows the territory. He also knows some of the others to form an advisory board for the business.
misconceptions that crop up around the subject. A sense of direction
“A lot of people confuse governance with compliance regulation; the former is actually “Immediately there was some decision-making put around some of the processes that
about achieving strategic purpose, about growth, about performance and about better I did through gut feel, or through passion. Not only did it improve the reporting and
business.” the financial aspects of the business, but it streamlined decision-making because we
In this regard, size is irrelevant. Regardless of the business, these principles matter had some structure,” says Rink.
greatly for a variety of reasons. “When you own a business, it’s quite a lonely place. You’re on your own. Everyone’s
Taking a bigger picture perspective, the OECD, World Bank and other global looking to you to employ them, pay their mortgages and make this business work.
organizations link positive governance practices to better, and sustainable, growth for Often you don’t have someone to talk to, share ideas or problems with, or even
the individual companies, as well as the economies where they operate. provide feedback.”
Good governance policies and practices are an effective way to reduce the risk of “Having an advisory board created a process where that sort of stuff was happening on
things coming unstuck. a monthly basis. We’d meet and talk about the strategy, about understanding what
parts we wanted to develop, which parts to turn on and which to turn off. Moreover, as
The benefits of smooth sailing the managing director, or the CEO, I had to start reporting back on those issues, which
Directors take on certain legal duties for businesses, and a breach of duties can expose I hadn’t had to do before – so there was an accountability that came into play.”
directors to personal liability. So it is in their best interests to keep the ship sailing That accountability and strategy helped Rink direct and grow the business. That then
smoothly and identify issues before they become problems. Because they are removed led to a situation where he felt he had outgrown that particular structure. He then
from the day-to-day running and emotional investment owner-operators often have in moved to a formal board of directors, before eventually retiring and developing his
the business, directors are, in theory, better positioned to help steer the organisation in consulting business. He now sits on the boards of other businesses.
the right direction.
A good board member will bring skills and knowledge to the table. They often fill in
gaps in the existing leadership. Working well together and with management boards How to give governance a go
can help business owners be accountable, plan for growth and for succession.
For those looking to kick start their business practices try the following:
“Even small family companies and SMEs often benefit from having an independent
• Dip your toes in the water. Establish an advisory board first – members
director involved,” says Nick Scott, corporate law expert and partner at law firm
assume no legal responsibility for the business but can help with strategy
Kensington Swan.
and advice.
“There may be different benefits they can bring. Not only can they offer an objective
• Identify knowledge gaps. What skills would the business benefit from?
viewpoint but they may also bring a particular skillset; in marketing industry Choose board members for their ability to bring something to the board
knowledge, technical skills, finance or what have you. When a SME is thinking about table – not necessarily your lawyer or bank manager.
what’s the best composition of a board, it needs to think about the skills it needs to • Don’t think about it as giving up control. Rink says he identifies with
have in order to perform best.” owners who might feel like establishing board leadership as giving up
What might make governance issues most attractive to the average trades business- control of the business, but he says it freed him up instead.
owner is the potential to grow an operation, free up time from day-to-day • Seek help. The Institute of Directors has plenty of resources to get you
responsibilities, and even to retire early. going in the right direction www.iod.org.nz
12Booming on
It’s no secret the country’s in the midst of
a national construction bonanza. What
are you doing to reap the rewards?
By Latesha Randall
The major action is in Auckland and Christchurch yet the
benefits from the bullish times in the construction sector
are flowing elsewhere. Pundits suggest that growth will be
sustained in both the residential and non-residential
building sectors. So what does this mean for your business?
Are you planning ahead, seeking out funds and preparing to expand?
If you’re a one-person band with a few support staff, or a tradesman with the odd ‘
peak time’ contractor on board, day-to-day operations often get in the way of seeing
the bigger picture. Managing cash flow to pay staff and bills, waiting for clients to
come through with their payments, and the everyday stress of running your own
business may cloud your ability to recognise expansion opportunities available.
While larger, more established companies can perhaps more easily mobilise to meet An open eyes and mind approach
the increased demand without sacrificing quality, it’s often a different story for small
Research, be it through word of mouth, statistics, looking at individual businesses
and medium sized companies.
and their systems, their people, philosophy and the success or lack there of, can all
be helpful in keeping a business, and its bottom line, moving forward. Whatever the
case, and also in keeping with ones' individual style, it is more prudent having a
plan than not. Maintaining a frame of reference and ensuring decisions aren’t made
with a ‘flying by the seat of ones' pants’ attitude are all part of sensible business
practices.
Particularly if you’re not an experienced financial person, it pays to have
connections with people who can read the full story behind a balance sheet. They
can also be helpful in ensuring how the current situation might meet expectations
and perceived opportunities. Growth is one thing but moving too fast without the
solid financial base underpinning this can be a problem. Again, wise counsel will
help avoid any perils and pitfalls.
The Icehouse Business Incubator sees a lot of SME company owners looking to take
the next step to grow their business. Director of sales Mike Stokes agrees it’s
important to plan before choosing a finance strategy to take your company to the
next level.
Firstly, you need to look at your options.
Is it a debt option meaning you need to
get funds? Or is it an equity option, perhaps
one that involves bringing on a partner?
“At Icehouse, we first look to see if the right platform is there, then look at what road
blocks you need to get through. Invariably funding can come into the mix.
Whatever the case we’re very focused on supporting and helping businesses grow
sustainably,” says Mike Stokes. “Whenever significant decisions about funding
need to be made we advise people to talk to financial professionals that work in this
territory on a day-to-day basis. We also advise talking to more than one in order to
get the best outcome.”
With everyone in the construction industry expected to get busier and busier over the
next five years, formulating a plan, identifing the road blocks and exploring funding
options could be the difference between haphazard expansion and strategic,
sustainable growth.
13The tale of the building that straddled two sites
Buildings that straddle two or more allotments need special attention.
By Louise Swann
It is not the norm but sometimes a building consent application is made for landowner (applicant) believed that building meant the construction of an entire
building work that is to straddle two or more allotments. In these cases the Building new building and not alterations. In contrast the Council considered that building
Act requires that a certificate under section 75 is lodged on all affected titles. referred to all building work, which of course includes additions and alterations as
Consider the following scenario. A home is built and half the lounge is constructed well as the construction of new buildings. In particular they stated that the
on a different allotment from the balance of the house. This works fine, that is until construction of the new partition walls came under the definition of construct as
the owner of both allotments decides to sell the land that half the lounge is built on. they were designed and built. The work could not be considered re-erection or
Can the lounge still be used? The section 75 certificate is designed to manage and repaired because they were constructed in a different place to the partition walls
prevent this sort of situation from occurring for new building work. It will state that that were removed.
as a condition of a building consent being issued, the specified allotments cannot For the record section 8 of the Act defines building as a temporary or permanent
be transferred or leased unless undertaken in conjunction with the specified other movable or immovable structure. Building work on the other hand means for, or in
parties connected with all affected allotments. connection with the construction, alteration, demolition or removal of a building.
The determination boiled down to detail and definitions.
Changing the walls and partitions in a hotel
This months determination relates to a situation where a lessee made application
for a building consent to demolish non-load bearing walls and replace them with The definition and interpretation of the wording
alternative non-load bearing walls and partitions. The building in question was a
hotel which was constructed over two allotments, both of which are owned by the
in the legislation became central in determining
one landowner. whether or not section 75 was required.
There was some debate between the lessee, landowner and the local authority as to
whether an section 75 certificate had to be registered on the two titles. The Council
was holding fast that, until section 75 certificates were registered on the titles of the So the Determinations Manager faced a conundrum as buildings and building work
two allotments, it would not issue a code compliance certificate. The owner, are general terms used throughout the Act. Should he rely solely on the definition
however, did not agree since they considered that the section 75 provisions were as set out in section 7 and 8, or should he consider the context within which the
only triggered where a whole building is constructed, rather that the removal and terms are used in different sections of the Act? In this case the Determinations
replacement of some internal walls. Manager decided to adopt a contextual based interpretation.
As a result the owner of the land applied for a determination. Construct and alter are used in different ways throughout the Act and they are
defined differently in section 7. Construct is used in relation to a building and
It’s all about the words
The definition and interpretation of the wording in the legislation became central in
determining whether or not section 75 was required.
First off is the definition of building. How the term
building is defined is important as section 75
applies to the construction of a building
on two or more allotments. The
definition is covered in
section 8 of the Act. The
14includes the design, building, erection, prefabrication and relocation of a building.
Alter is in relation to a building and includes the rebuild, re-erection, repair,
enlargement and extension of a building. Looking at the dictionary meanings
construct is to build or make, while alter is to change.
Based on these definitions and semantics the Determinations Manager concluded
that the removing and rebuilding internal partition walls constituted an alteration.
Once the Determinations Manager had arrived at this decision it became relatively
easy to determine whether or not section 75 applied in this situation.
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Section 75 only refers to the construction of a building. It specifically only uses the
word construct in order to limit the provisions of this section to major building
work only. The intention of a section 75 certificate is to stop allotments being sold, BUILDERS ESSENTIALS*
or leased separately, when a single building crosses all the allotments. The No more out of stocks. We have put
intention is that a section 75 certificate is registered on the titles when a building is a list of your ‘Builders Essentials’
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On the basis of his analysis the Determinations Manager concluded that section 75 or supplied free of charge.
did not apply in this instance. Therefore the decision to issue a code compliance
certificate should be based on whether the building work was in accordance with
the consent. The Council were instructed to reconsider the application for a code
compliance certificate in light of the determinations’ findings.
While it didn’t have any bearing on the determination, the Determinations Manager
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Despite what the determination concluded, there is no doubt that this hotel is
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against them.
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