Issue 31 get your June 2014 skills maintenance point! UNDER CONSTRUCTION going online! HOW TO STAMP OUT DAMP IN HOMES KEEP YOUR CASH FLOWING WITH THESE SIMPLE TIPS TRADE ONLY: makita brushless 2 pce drill pack $699 +GST FOREWORD View from the CE CONTENTS Working to help you work smarter PlaceMakers continues to evolve its offering to meet industry needs PlaceMakers has always placed great importance on continually adding value to the services we provide to our customers, to assist you in keeping up with the ever-increasing demands and changing requirements of the job. 5 We developed Under Construction in 2011 in response to the launch of the Skills Maintenance programme. We believe the next stage in its development is to put the content online, which is where so many of us now manage our lives, for work, leisure and general communication. We’ve moved forward with this and the new Under Construction website will go live in July. We see this becoming the centre for industry news, gaining knowledge and general discussion. New articles will be posted each week, which will give you the advantage of being able to spread your skills maintenance reading throughout the month and, of course, to record your learning online. Read more about this on Page 3. The new Under Construction website will go live in July. We see this becoming the centre for industry news, gaining knowledge and general discussion The ability to reduce the amount of paperwork we have to deal with in our lives is always a good thing – there is some useful advice on how to streamline your business processes by moving to online accounting systems on Page 20. 17 It’s not all about the office side of things, of course. We’re constantly looking at ways to add value to you, the builders on the ground, and to make it easier for you to gain access to the information you require. On Page 14, you can read about how we’ve developed our frame and truss offering to meet everchanging customer needs by ensuring we deliver customised solutions on time and within budget. Gary Woodhouse General Manager Operations & Marketing 2 SKILLS MAINTENANCE PlaceMakers’ sixth round of seminars provides great insight into builder responsibilities 5 COMMUNITY NEWS PlaceMakers Whangaparaoa relocates to expanded new premises in Silverdale; PlaceMakers Kapiti supports local Coastguard through second annual fishing tournament 12 INDUSTRY NEWS March building consents hit six-year high; PlaceMakers customer receives Women in Construction award; CCANZ offers concrete placement supervison course 4 BUILDERS’ BUSINESS Business practices of your fellow builders 6 BUILDING & HOUSING GROUP MBIE’s newly released Schedule 1 guidance clarifies what building work is now exempt, who can carry it out and what to do if you’re unsure 8 BRANZ Top it off! How to prevent external moisture damage by closing the top of ventilated cavities 10 MBIE - IMMIGRATION Welcome advice – how to maximise your migrant workforce 14 FEATURE Discover how PlaceMakers Frame & Truss is delivering customised solutions on a large scale 17 BUILTIN Don’t sign something you don’t understand! Builtin explains terms used in public liability insurance policies 18 BEACON PATHWAY Damp-proof dilemmas? How to knock moisture problems on the head and stop them from occurring in the first place! 20 BUSINESS TIPS Unsure about online accounting? Learn more about what these systems can do for your business 22 BUSINESS TIPS Money matters – simple tips to ensure you’re not a bank as well as a builder for your customers 25 SPONSORSHIP Hurricanes and PlaceMakers team up to 'Lend a Hand' 25 SKILLS MAINTENANCE Record your LBP skills maintenance – you’ve earned it! 18 PlaceMakers Evans Bay customer and Hurricanes fan Chris Ryan has been running his own business, C J Ryan Ltd, for the past 17 years – but he says raising six kids keeps the workload in perspective. “Monday to Friday have always been busy working on the business, but the weekends were always just as, if not more, busy with coaching and taking the kids to their sports,” says Chris, who’s been building for 27 years since leaving school. “I knew I didn’t want to work in an office, and I thought building would provide a stimulating challenge,” says Chris. “While recent changes have made it seem like I might need an office sometimes, I enjoy the building side of building – and seeing the completed homes – as much as ever.” 2 Chris, who has been a PlaceMakers customer since he started his business in 1997, has also enjoyed some national acclaim over the years, winning a number of House of the Year awards for renovations and new builds. 22 Issue 31 > jUNE 2014 > PUBLISHER > DCL Corporate Publishing > enquiries > [email protected]; (04) 384 5689 DCL Corporate Publishing reserves the right to accept or reject all editorial or advertising material. No part of Under Construction magazine may be published without the express permission of the publisher. All rights reserved. Opinions expressed or imagery in Under Construction magazine are not necessarily those of PlaceMakers or the publisher. No responsibility is accepted for the suggestions of the contributors or conclusions that may be drawn from them. Although the publisher has made every effort to ensure accuracy, the reader remains responsible for the correct use and selection of any tools, materials and systems followed, as well as the following of any laws or codes or standards that may apply. 1 TRAINING TRAINING skills maintenance skills maintenance Don’t ignore your instincts! Under Construction website goes live next month! PlaceMakers' sixth round of skills maintenance seminars encourages builder interaction Keep your skills maintenance reading going throughout the month with PlaceMakers’ new Under Construction website P laceMakers presenter John Tait had everyone involved in the discussion at PlaceMakers’ skills maintenance seminar in Petone, where he quizzed them on the building code, the importance of ROW detail and much more. C an’t remember when the next skills maintenance seminar in your area is? Trying to recall what MBIE’s latest Schedule 1 exemptions included? As of July, this information and so much more will be at your fingertips whenever you need it, with Under Construction content available online! “Don’t lift a hammer until you’ve read all the documentation!” and “If it’s not written down, it didn’t happen!” were two key points John reiterated through a number of personal examples from his building inspector experience. John says it’s particularly important to have a good look at the plans before getting stuck into the work. “Sometimes there might be parts of the design that lack detail, or just plain won’t work,” says John. “It’s much more useful to realise that up front than have to delay your build when it gets to that part – by then it might not be such an easy fix.” Given the number of legislation changes in the industry, and the disconnect that sometimes occurs between designers, homeowners, councils and builders, John said the best advice builders can take on board is to document everything, ask questions and trust your instincts. “If your gut tells you something doesn’t seem right, don’t just ignore it and carry on with the work – ask someone who can alleviate your concerns,” says John. A number of builders recounted situations of that nature that they’d encountered, and John shed light on why it might have occurred and the best course of action to take. Licensed Building Practitioners (LBPs) Kent Slobbé and Andrew Rouse-Wyeth, who work for Ezra Enterprises in Wellington, said the seminar provided great insight into their responsibilities. “While we’re not business owners, we’re LBPs and it’s important that we know what we’re responsible for and what we’re not,” said Kent. “A lot of these projects run on pretty tight timelines, but this serves as a good reminder that saving a few minutes isn’t worth compromising our licence or our reputation.” 2 More than 100 builders attended the PlaceMakers Skills Maintenance seminar in Petone Skills Maintenance Series 2014 with John Tait Venue: Date: Time: Placemakers Pukekohe Wednesday, 4 June 7:00am - 9:00am PlaceMakers Mt Wellington Wednesday, 4 June 5:00pm - 7:00pm PlaceMakers Pakuranga Thursday, 5 June 7:00am - 9:00am PlaceMakers New Lynn Thursday, 5 June 5:00pm - 7:00pm PlaceMakers Te Rapa Tuesday, 10 June 7:00am - 9:00am PlaceMakers Clarence Street Tuesday, 10 June 5:00pm - 7:00pm PlaceMakers Huntly Wednesday, 11 June 7:00am - 9:00am Placemakers Whitianga Wednesday, 11 June 5:00pm - 7:00pm Placemakers Thames Thursday, 12 June 7:00am - 9:00am PlaceMakers Morrinsville Thursday, 12 June 5:00pm - 7:00pm PlaceMakers Cook Street Tuesday, 17 June 7:00am - 9:00am PlaceMakers Waiheke Tuesday, 17 June 5:00pm - 7:00pm PlaceMakers Albany Wednesday, 18 June 5:00pm - 7:00pm PlaceMakers Wairau Park Thursday, 19 June 7:00am - 9:00am PlaceMakers Nor - West/Westgate & Helensville Thursday, 19 June 5:00pm - 7:00pm PlaceMakers Silverdale Monday, 23 June 7:00am - 9:00am PlaceMakers Mangawhai Monday, 23 June 5:00pm - 7:00pm PlaceMakers Whangarei Tuesday, 24 June 7:00am - 9:00am PlaceMakers Kerikeri Tuesday, 24 June 5:00pm - 7:00pm PlaceMakers Kaitaia Wednesday, 25 June 7:00am - 9:00am To cater for those of you who are on board with the digitisation of most things in life, and feel that receiving industry updates once a month doesn’t quite suffice, we’re launching an Under Construction website to serve as a hub for industry news, knowledge and discussion. Regular monthly content – such as features, industry news, product news, LBP information, community news and Sport Report – will continue to be featured, with two to three new articles ready for you every week. The new Under Construction website will also enable you to fill out the ‘Test your Knowledge’ questions as you read through the articles, allowing you to read the entire magazine’s content – and answer the questions – in bite-size chunks as and when you like. Wider discussion will be encouraged, both in a builder’s forum and through the opportunity to post comments at the bottom of each story. This should raise some interesting points and strategies from fellow builders across the country, as well as allowing PlaceMakers to receive feedback on what stories were most helpful or interesting. You will have your own login name and password, so you can comment and have the skills maintenance points you’ve earned recorded against your name. If you’re a Licensed Building Practitioner, when it comes time to renew your licence, you can just print your ‘Learning Record’ to prove the time you’ve spent reading the publication. We’ll be unveiling the website in next month’s issue of Under Construction, so you can create your profile and have a look around – we trust you’ll be impressed! CO S OM I N ON G ONLINE record of learning New articles every week Builder discussion forum More Trade Only deals Through Under Construction, PlaceMakers undertakes to provide you with relevant industry information. Reading its content – and providing evidence of your understanding of it – is a skills maintenance activity. practitioner’s licence. Recording your answers to the questions at the end of each feature provides evidence of your learning. You can either: Proof of learning from such an activity – rather than simply ‘participating’ – is becoming a key requirement for the renewal of your building • Collate your answers at the back of the magazine and file the coupon. • Record your answers at the end of each feature and keep the magazine. Read it anywhere searchable content 3 FEEDBACK NEWS Builders’ Business community Focus Write it down! Bigger, brighter, better New Silverdale branch offers customers a better-located and better-stocked store Builders’ Business is a column by builders for builders. Its objective is to provide a forum, particularly for small business operators, in which to share knowledge, experience, tips and ideas Q: Are you using a written contract for every job? If so, why? Firm: Little Pig Building Principals: Nick Marer Location: Port Nelson Staff: 3 staff (including me) Although we’re based in the Nelson area, we work across most of the top of the South Island – from Wakefield through to Nelson. When it comes to written contracts, we’re about 50/50. New customers ALWAYS have written contracts, but when you get to a stage where there’s mutual trust, it becomes less important. However, it takes a while to reach that stage – I only feel comfortable not using a written contract for trusted, regular clients with whom I have an ongoing relationship and have done hundreds of thousands of dollars’ worth of work for. At that point, they trust that I’m not over charging them and I trust that they’ll pay me the amount I charge them. However, this trust really only applies to small to medium-size alterations or renovations. No matter how well I know a client, or how much I trust them, if I’m building them a new $500,000 home, we’ll be using a written contract. It’s just common sense, and it’s professional, which most home owners want to see. Firm: Porter & Harper Builders Principal: Clive Porter Location: Hawera Staff: 2 principals, 3 staff Firm: Highmark Homes Principal: Warren Whelan Location: Alexandra Staff: 23 employees (1 apprentice) “After 17 years in Whangaparaoa, we've shifted to a new 8,000m2 site on the corner of East Coast Bays and Tavern Roads in Silverdale, Auckland,” says branch operator John Gair. While a lot of builders in larger centres may find it surprising, it’s pretty relaxed here in Hawera and, so far, we haven’t felt that we need contracts. We’re doing a $600,000 job at the moment, but we know the client has the money, so it’s not a concern. We use written contracts for all our work and, if I was a consumer, I wouldn’t work with anyone who couldn’t provide one. The new purpose-built store has been designed with substantially more undercover storage area compared to the previous site, with an “expansive” and easy-access driveway, 65 car parks and a larger showroom. I‘ve been working here for about 30 years, and my business partner grew up here, so we’ve known most of the people we work for and with for a long time. The trust we have in most people, combined with good intuition, is generally enough to assess whether we decide to take on a job or not. However, there’s no doubt that things are changing and documenting our work is becoming more important, so we’ll probably start using contracts some time in the not-too-distant future. There are also some cases where we’re already required to use them, such as when we’re working on educational builds. For really small jobs, we use a single-page contract that has all the necessities, but for any work of significant value – alterations, renovations or new builds – we use the Registered Master Builders contract. By doing that, we can also offer the Master Build Guarentee. We’ve used that contract since we became a Registered Master Builders company seven years ago, and before that we used a contract written up by our lawyers. Before I started my own company, I was the general manager for a larger construction firm and we’d always insist on using written agreements. In my view, it’s mandatory to protect both your client and yourself, and it’s seen as best business practice now, so clients should expect it. Most home owners welcome having a written contract, as they see it both as a guarantee and a safety net. Now have your say... With a number of online business management systems available, what system – manual or online – are you using and why? answer this question to enter our quarterly prize draw E mail your answer with your full name, contact phone number, company name, number of full-time staff and the city or town in which you’re based to [email protected] All responses must be submitted by 25 June. The answers to this question will be published in Under Construction August. 4 P laceMakers prides itself on supplying quality products – and according to PlaceMakers’ property development manager Matt Grainger, that includes their own facilities. The new PlaceMakers Silverdale store has a 2700m2 yard and an easy-access drivethrough “We opened on April, right on schedule, and the change has been great,” says John. “The staff and customers have been hugely supportive of the move, find it a much more enjoyable environment and are impressed with our improved range.” The store has 5,500 products, including 750 new additions and a core trade range, which is pledged to never be out of stock. The construction also employed green building initiatives, including daylightharvesting, energy-efficient lighting and water-saving systems, a pattern PlaceMakers says all of its new stores will be following. Fishing for fun and funds PlaceMakers Kapiti’s second annual Classic Fishing competition was a great success – giving rise to some friendly rivalry between builders and staff and raising $2,500 for the local Coastguard T he competition, which began last year, was instigated by PlaceMakers Kapiti joint venture operator Greg Kusabs. “Given we live in such a beautiful part of the country, with amazing fishing that a large majority of our customers enjoy in their spare time – I figured a social competition would be a great way to bring everyone together,” says Greg. “At the same time, we thought it would be good to turn it into a fundraiser for the local Coastguard, as they do such important work in our community.” Run over two days in March, the tournament’s already grown in popularity; 15 boats were entered last year and 25 this time. points and prizes for the biggest fish in each species and we have overall team prizes based on points accumulated for size and variety.” The competition finishes with prize giving on the Sunday evening, where everyone has a chance to socialise and tell stories about the ones that got away. This year, the PlaceMakers’ team invited ex-All Black Joe Stanley to attend and held a fish auction, which greatly increased their final Coastguard donation to $2,500 (up from $900 last year)! “We’ve been extremely lucky with the support we receive from our suppliers, both on the water and off,” says Greg. “It’s a real family affair with our customers, “The customers love it and word keeps their kids and partners, suppliers and staff,” spreading, so next year we know it will be bigger and better.” says Greg. “Individual fishermen score Builders, bricklayers, plumbers, roofers and PlaceMakers staff all came together to catch ‘the big one’ at PlaceMakers Kapiti’s second annual Classic Fishing competition 5 REGULATION MBiE Building & Housing Exempt from consent? Updated and detailed Schedule 1 guidance for exempt building work has been released, following the November 2013 Building Act amendment – here’s the lowdown A • Chartered professional engineers. s discussed in last month’s issue of Under Construction, a number • Registered building surveyors. of changes were made when Schedule 1 of the Building Act 2004 (the • Building consultants. Act) was amended in November 2013. • Licensed building practitioners. In March this year, The Ministry of • Registered certifying plumbers Business, Innovation and Employment and/or drainlayers. (MBIE) published new guidance to help 2. If, after seeking advice, you keep you up to date with the changes. decide the building work is The guidance concentrates on the 43 outside exemptions 1, 3 to 43, exemptions of Schedule 1 and is full of what should you do? practical examples and photos. Talk to your council to see if it is prepared to exercise its discretion as It’s important that builders are aware to whether or not it requires a building of building work that is exempt from consent (i.e. exemption 2). If the council a building consent, as your clients will does not require a consent, you may often rely on you to advise them. still need to apply in writing for an Carrying out building work that is not exemption from the council. exempt, without a building consent, is 3. If the council will not approve an an offence and can incur a fine of up to exemption 2, what should you do? $200,000 and a further fine of up to $10,000 per day if work continues. Apply for a building consent. To find out more, read the guidance Building work that does not require a building consent - Building Act 2004 at www.dbh.govt.nz/bc-no-consent REMEMBER – building work may require other consents If you’re still unsure… Remember – all building work must comply with the Building Code, regardless of whether it needs a building consent. However, just because it doesn’t require a building consent doesn’t mean you have to go it alone. 1. Does the proposed building work clearly fall within the scope of one or more of the exemptions (excluding exemption 2)? If you're unsure whether the building work is exempt, ask for advice from someone with the appropriate building knowledge and expertise such as: • Building consent authorities (typically district and city councils). • Registered architects. 6 www.mbie.govt.nz All building work, whether or not exempt, must still comply with the Building Code and all other relevant legislation, such as the Resource Management Act (RMA) 1991. Always check with your local council for its District Plan rules (eg maximum site coverage, yard/setback requirements, sunlight access planes or permitted activities) set under the Resource Management Act 1991, as there are some discrepancies between Schedule 1 and local council requirements. If you need resource consent for the proposed building work, it’s important you get this before starting work. Find out more about the relationship between resource and building consents, how they may affect your project, and what you need to do to have your consents approved at: www.dbh.govt.nz/rma-guide-index Examples In the new guidance, each exemption is described in detail with examples, photos and, in some cases, diagrams. It also highlights any concerns to be aware of and clarifies the type of work that is exempt and who can carry it out. Below is an excerpt from the guidance regarding one of the exemptions. All exemptions are described in similar detail, so make sure to take a close look. However, if you are replacing a window, roof window or door that has been installed within the last 15 years and it has failed (eg it has rotted out), this work will require a building consent. This recognises that replacing a window or door that has failed its durability requirements with a similar window or door could result in the replacement also failing. Windows and exterior doorways in existing dwellings and outbuildings Building work in connection with a window (including a roof window), or an exterior doorway, in an existing dwelling that is not more than two storeys, or in an existing outbuilding that is not more than two storeys, except: (a) in the case of replacement, if the window or doorway being replaced has failed to satisfy the provisions of the building code for durability – for example, through a failure to comply with the external moisture requirements of the building code; or ALERT! All new building work must comply with the Building Code, including the structural performance requirements. Also note that, on completion of the building work, the altered building must comply with the Building Code to at least the same extent as it did before the building work was undertaken. If you are considering building work that is close to or involves potentially load-bearing walls, it is important to get professional advice (eg from a chartered professional engineer, registered architect, building consultant or registered building surveyor). (b) if the building work modifies or affects any specified system. This exemption allows you to carry out any building work in connection with a window (including a roof window, whether it is fixed or opening) or an exterior doorway without needing a building consent where it is an existing dwelling or outbuilding. That is as long as the original doorway or window has not failed prematurely and replacing it will not modify or affect any specified system (eg sprinklers or fire alarms). If you are replacing a window, roof window or door, it is important to consider whether it originally met the durability requirements of the Building Code. In most cases, doors and windows in an external wall are required to last at least 15 years. Most windows and doors should achieve this requirement with regular maintenance. If the door or window is older than 15 years and you are replacing it because it has rotted out, then this work will not require a building consent. between the existing roof trusses without altering any specified systems. • A homeowner decides to replace a damaged, non fire-rated window that is 500 mm from the boundary. As the replacement window is within a metre of the boundary and as the new building work must comply with the Building Code, the window must provide adequate protection to the boundary (it could either be a firerated window or a non fire-rated window which is suitably protected; eg by a drencher system). The existing windows (which are non fire-rated) in the same wall can remain because the house still complies to the same extent as it did before the alteration (refer to section 42A(2)(b)(ii) of the Building Act). Examples where this exemption could apply • Removing a dwelling’s lounge window and covering the opening with external cladding and internal linings to form a wall with no opening. Note that minimum Building Code requirements will still need to be met for ventilation, natural light and visual awareness of the outside environment. • Installing a roof window to an upper level apartment of a two-storey multi-unit dwelling (ie an apartment building). The skylight will be installed • Following earthquake damage, a builder decides to install a bi-fold door to replace a pair of French doors leading from the ground floor dining room of a two-storey dwelling. As the wall opening for the new joinery is wider than the existing opening, he needs to install a new lintel to span the opening. • To gain more sunlight, a home owner decides to install a window in an external fire-rated bedroom wall which contains no other openings. As the window will be less than 1 metre from the boundary, the owner instructs the builder to install a fire-rated window to meet the Building Code requirements. Examples where building consent is required • A window installed in an existing outbuilding only six years ago needs to be replaced because of a rotten timber window frame. Replacing this window requires a building consent because it has failed its 15-year durability requirement. • The owner of a commercial building wants to install a roof window into an existing roof and ceiling to a top floor office. As this building is not a dwelling or outbuilding and as the roof window installation will affect the existing sprinkler system, a building consent is required. Circle the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning rather than just ‘participation’ is a key requirement of the LBP renewal process. 1) a b c Who is NOT listed as having “appropriate building knowledge and expertise”? a) b) c) Registered architects. Building consultants. Building managers. 2) a b c In terms of consent, if you are replacing a window, roof window or door, it is important to consider: 3) a b c When is consent required when doing building work involving windows and exterior doorways? a) If the door or window is older than 15 years and has rotted out. a) Whether it originally met the durability requirements of the Building Code. b) When installing a skylight without altering any specified systems. b) Whether it fits with the original features of the build. c) If the door or window is less than 15 years old and has rotted out. c) Whether it's on an internal or external wall. NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation. 7 TECHNICAL BRANZ External moisture control - top it off! Prevent external moisture from damaging a home by closing the top of ventilated cavities C lause E2 External Moisture aims to keep external moisture from damaging a home. E2.3.5 states that: “concealed spaces and cavities in buildings must be constructed in a way that prevents external moisture [from] being accumulated or transferred and causing condensation, fungal growth or the degradation of building elements”. This can be overcome by: • Ensuring insulation is installed for the full framing depth. • Adding an additional batten fixed to the soffit bearer from inside. • Fixing the flexible wall underlay to the soffit bearer from inside to hold the wall underlay tight to the back of the soffit bearer. be required behind the soffit runner when the runner is below the top plate (see Figure 3). The best option for steel framing is to use a thermal break sheet material over the whole frame. Cavity battens, where required, are then installed over the thermal break and wall underlay, and a closing C-section is installed directly under or behind the soffit line, alternatively, fix the sheet material from the inside to the soffit runner. This will then close off the cavity to the roof space. Moist air, if present in roof spaces, may condense on cold nights and drip on to insulation, wetting it and compromising the R-value, which can then create rust or rot problems in ceiling or roof members Restricting moist airflow Specific requirements for cavities in E2/AS1 clause 188.8.131.52c include that a drained cavity, where required, shall restrict air movement between the drained cavity and: • Floor, wall and roof framing. • Attic roof space. • Subfloor space. Figure 1: Cavity air may enter the roof space when the wall underlay bulges away from the soffit bearer Correctly detailing the soffit-to-wall framing junction will help prevent moist air from cavities getting into the ceiling, where a flexible wall underlay is used www.branz.co.nz Attention! The same applies to steel framing that has strips of thermal break applied to the steel. Care is required where thermal breaks are attached to the frames. To close off the cavity to the roof space, an additional full-depth C-section will Are you a building contractor who pays levy fees through a consent authority? If so, then you are entitled to a free subscription of BUILD magazine from BRANZ. Simply email [email protected] to check that you meet the required criteria and get your subscription. Circle the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning rather than just ‘participation’ is a key requirement of the LBP renewal process. 4) a b c What could happen if moist air is present in roof spaces? Timber framing 8 Figure 3: Restricting air movement into the roof space for steel framing where strip thermal breaks are used Steel framing Moist air, if present in roof spaces, may condense on cold nights and drip on to insulation, wetting it and compromising the R-value, which can then create rust or rot problems in ceiling or roof members. Correctly detailing the soffit-to-wall framing junction will help prevent moist air from cavities getting into the ceiling, where a flexible wall underlay is used. For timber frames, the flexible wall underlay may billow or bulge away from the soffit bearer, allowing cavity air into the roof space (see Figure 1). Where vertical weatherboards or sheet claddings are used, there should be a row of dwangs behind the top cavity closing batten to fix the cladding to (see Figure 2). The flexible wall underlay must be sandwiched tight, so nothing extra is required. Figure 2: Restricting air movement into the roof space for vertical weatherboards or sheet cladding 5) a b c What is NOT recommended to prevent the flexible wall underlay from bulging away from the soffit bearer? a) The risk of leaks is increased. a) Add an additional batten fixed to the b) It may condense on cold nights and drip soffit bearer from inside. on to insulation, compromising the R-value. b) Ensure insulation is installed for the full c) D-value insulation will need to be fitted. framing depth. c) Read up on strategies employed in the Battle of the Bulge. 6) a b c What is the best option for steel framing? a) Use a thermal break sheet material over the whole frame. b) Use strips of thermal break applied to steel. c) You shouldn’t ever steal framing! [Dad joke alert! Ed] NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation. 9 Employment MBIE Immigration • Maximising a migrant workforce • Let them know about any social activities, religious groups or clubs they can join. Make sure they get to have a chance to experience New Zealand and its culture. Employers can help by preparing prospective overseas employees for life in New Zealand; in doing so, you can help maximise their productivity within your business Create a Welcome Kit Some companies have developed a Welcome Kit for new workers, which they give to them before leaving their home country. 6. What to do in an emergency. • Means fewer mistakes are made. 7. Local community health services. • Helps your new employee become familiar with your workplace and work practices. 8. Driving in New Zealand (road rules and driver licensing). 9. Food and commodity prices. 10.The local area. • Workers’ roles and responsibilities. 11.Accommodation advice. • Your expectations about employees’ work. • 13.Who to contact for advice and support. Workers’ employment rights and obligations. • Health, safety and hazards. Provide an orientation • Language and cultural differences. 12.Sending and receiving mail. A tailored orientation for migrants can be helpful because it: • It's important to set out your expectations up front, so migrants know what is expected of them If you’re thinking about employing migrant workers, a little planning can go a long way. Preparing foreigners for life and work in New Zealand will help them adapt quicker, which can only mean good news for your business M Planning ahead igrant workers can help fill labour and skill shortages in It’s a good idea to employ migrant the construction sector – but workers before your workload peaks. how well they do that can depend Once hired, prepare some information on how quickly and successfully they that will help them fit into the workplace adapt to Kiwi culture, both inside and and the culture more quickly. outside the workplace. Employers can help by preparing prospective overseas You could: employees for life in New Zealand; in • Meet your workers when they doing so, you can help maximise their arrive in town and give them productivity within your business. a tour of the area. Immigration New Zealand provides • Give them a welcome kit that some simple tips that can make all the includes local community difference to settling and retaining information and important contact migrant workers in its helpful guide details, including your own and Are You Employing Migrant that of the nearest Settlement Construction Workers ? Support office (there are 18 around the country). Over the next few issues of Under Construction, we’ll continue to feature • Advise them where to buy food, content from this guide; so that when clothes and other basic needs, you encounter issues, you’ll have and the location of schools and medical centres. a better idea of how to deal with them. 10 www.mbie.govt.nz • • • Help them or give them some time to make personal arrangements, such as opening a bank account, organising an IRD number and getting a mobile phone. Check they have a valid driver licence for their own country and help them get some transport. Visitors with a valid overseas driver licence can drive in this country for a maximum of 12 months, after which they will need to apply for an NZ licence. The New Zealand Transport Agency has more information and a useful guide, ‘What is different about driving in New Zealand’, available online. Put on a social event to welcome your new worker (and their family) to the team and to the neighbourhood. Sets out your expectations. NOTE : Remember, much of this preparation will only need to be done once and can be used for any subsequent overseas employees. Tips from experienced employers about working with migrants A Welcome Kit should contain information on: 1. The travel and arrival process. Most orientation programmes include information about: It makes a difference if you: are patient and can appreciate other ways of doing things have realistic expectations 3. An overview of New Zealand, including arts, sports, and Māoritanga. give the migrant time to take in new information assist them with basics, such as tax, phones and banking 4. Advice on the New Zealand climate and clothing requirements. are open-minded and interested in other cultures consider whether your workers need to know more about other cultures can put yourself in the migrant’s shoes have a sense of humour 2. Expectations on the job, such as timeliness, honesty and openness. 5. New Zealand language and culture (including New Zealand management and communication culture, plus construction industry jargon and slang). Circle the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning rather than just ‘participation’ is a key requirement of the LBP renewal process. 7) a b c 8) a b c 9) a b c When is the recommended time to employ a migrant worker? What is recommended that you include in a welcome pack? Which of these is NOT a recommended trait for someone employing a migrant worker? a) Before your workload peaks. b) When your workload peaks. c) After your workload peaks. a) Expectations on the job. b) A welcome cash bonus. c) A return ticket, in case things go badly. a) Having realistic expectations. b) Being open-minded and interested in other cultures. c) A compulsion to imitate foreign accents in a 'comedy' manner. NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation. 11 NEWS INDUSTRY focus March building consents hit six-year high Upward trend for new dwellings consented continues R esidential building consents continued to rise in March, which was the best month for house approvals in more than six years, according to Statistics New Zealand’s latest figures. The trend for new dwellings, excluding apartments, has been increasing for almost three years and is 89% higher than the most recent low-point in March 2011; however, it is still 19% below the highest point in September 2003. Excluding apartments, the number of new dwellings rose 1.3%, with 1,813 dwellings consented in March 2014, Including apartments, there were 1,999 new dwellings consented. Of these, 186 were apartments, including 110 retirement village units. TREND FOR NEW DWELLINGS almost doubled since march 2011 Following falls in January and February, the number of new dwellings, including apartments, rose 8.3%. Business indications manager Neil Kelly said the trend for new dwellings has almost doubled since March 2011, but is still 28% below the peak in January 2004. On a seasonally adjusted basis, new Number New dwellings consented Including apartments March month by region Source: Statistics New Zealand Hays’ inaugural ‘Women in Construction Awards’ recognise women who’ve achieved excellence in the construction industry and individuals who support women in construction L “Given the sheer scope of the construction work required to rebuild Christchurch, and the ongoing skills shortages within construction, it is essential that we encourage women to consider a career in the industry. There Pollard, whose background includes is no doubt that they are equally as architectural drafting, quantity surveying, capable as men currently working in project management and construction these roles.” supervision, now runs the Canterbury Landmark Homes franchise with her Of the 45 Landmark Homes Canterbury husband Stephen. employees, six are women. ong-time PlaceMakers customer Coralie Pollard was delighted to receive recognition at Hays Recruitment’s inaugural ‘Women in Construction Awards’ in Christchurch. Region 1 Northland 2 Auckland 3 Waikato 4 Bay of Plenty 5 Gisborne 6 Hawke’s Bay 7 Taranaki 8 Manawatu-Wanganui dwelling consents, including apartments, rose 8.3% in March, bucking the trend of the previous two months. NEW DWELLINGS UP IN 12 REGIONS Including apartments, 12 of the 16 regions consented more new dwellings in March 2014 than in March 2013. The areas with the greatest increases were Canterbury (up 160 to 604), Auckland (up 168 to 561, including 61 apartments) and Waikato (up 64 to 232, including 67 apartments). Other regions that consented more dwellings included Northland, Bay 9 Wellington 10 Tasman 11 Nelson 12 Marlborough 13 West Coast 14 Canterbury 15 Otago 16 Southland of Plenty, Hawke’s Bay, Taranaki, Manawatu-Wanganui, Wellington, Marlborough, Otago and Southland. Those that didn’t were Gisborne, Nelson, Tasman and the West Coast. Canterbury had the highest number of consents at 604, followed by Auckland at 561, which included 61 apartments, and Waikato at 232. EARTHQUAKE-RELATED CONSENTS ACCOUNT FOR ABOUT 10% OF CANTERBURY CONSENTS “I was quite chuffed to receive recognition for something that I believe so strongly in,” said Pollard. “The number of women working in construction has grown significantly over recent years, but it remains a maledominated industry and I do my best to encourage women to come on board – both through hiring and via professional communication. “It’s not a huge chunk but it’s growing, and we always make it clear – both in our job postings and our conversations with candidates – that we will select the best qualified person, male or female,” said Pollard. The awards, which are the first of their kind in Christchurch, were such a success that Hays will extend the awards to Wellington and Auckland in 2015. “The objective of the Women in Construction Awards is to support the associations that bring attention to the outstanding performance of female construction professionals and highlight to young women the benefits of a career in construction,” said Jason Walker, managing director of Hays in New Zealand. “Hays’ objective is for the awards to become an annual celebration of women in construction across New Zealand.” Two other awards – ‘Women in Construction Excellence’ and ‘Outstanding Contribution to Women in Construction – Company’ were presented at the ceremony. Teaching quality concrete construction For comparison, the total value of building consents in Canterbury from September 2010 to March 2014 is $8.1bn and includes consents for 14,718 new dwellings. oncrete is the most widely used construction material in the world and the foundation of most New Zealand homes. While producing a quality concrete slab on ground is easy if done correctly, the cost of rework is high if mistakes are made the first time around. VALUE OF BUILDING WORK The upward trend for new dwellings continues, with buyers scooping up land in and around the main centres She received the ‘Contribution for Supporting Women in Construction’ award, which was presented by Dallas Welch, acting CEO for the Ministry of Women’s Affairs. Company director and owner of Landmark Homes in Canterbury, Coralie Pollard, believes more women should consider a career in the construction industry Since 4 September 2010, $1.7bn worth of building consents have been identified as earthquake-related. This includes consents for 1,688 new dwellings. However, Statistics New Zealand stipulates that not all earthquake-related consents can be identified. For example, if a new house (to replace a damaged house) is built at a different site, it might not be identified as earthquake-related. 12 PlaceMakers customer awarded for supporting women in construction In March 2014, the total value of building work consented was $1.2bn, with $800m of residential work and $422m of non-residential work. CCANZ offers concrete receipt and out by the site foreman (or equivalent) and the formwork carpenter,” says placement supervision course c To help those responsible for supervising the receipt and placement of fresh concrete on-site, the Cement & Concrete Association of New Zealand (CCANZ) has developed a Concrete Construction Course. “This supervision work is typically carried Alistair Russell, CCANZ’s structural performance and engineering systems manager. “Knowing what properties to look for when concrete arrives on site and how to identify any issues during placement is key to overseeing quality concrete construction.” Designed around NZS 3109 Concrete Construction, the curriculum for the two-day, classroom-based course will meet both industry needs and the relevant NZQA standards. The course will include an introduction to concrete, relevant standards and concrete tests for fresh and hardened concrete, reinforcement methods, formwork reinforcement, materials, systems and design and site practice (including handling and placing, compaction, finishing and curing, hot and cold weather concreting and surface finish and crack control. The course will be rolled out in Auckland in July, with Wellington and Christchurch dates to be announced. To register for the Auckland course, or to express your interest in the Wellington or Christchurch courses, contact CCANZ at (04) 499 8820 or email [email protected] Queries about the course content can be directed to Alistair Russell on (04) 915 0384 or email [email protected] 13 feature Placemakers frame & truss Custom-made frame and truss solutions manufacture. The latest in saw technology ensures accuracy and precision, and PlaceMakers provides sophisticated cuts for roof and angle frames, as well as ‘courtesy cuts’ (undercuts) for doorways on bottom plates. To further increase efficiency and precision, PlaceMakers has been replacing open saws with Razer linear saws, which have the latest printing technology to ensure that every component is accurately marked. The fully enclosed, automated machines reduce waste, are much safer to use than manual saws and complete four times as many cuts in the same amount of time. The enhanced printing capability clearly labels the face and edge of two pieces of timber at the same time, making it simpler to identify what should go where, allowing quicker completion of customer orders. PlaceMakers' Frame & Truss employees load and monitor the Razer linear saws PlaceMakers' bespoke frame and truss manufacturing service can save builders time and money c ustomisation and mass production aren’t common bed fellows – but PlaceMakers Frame & Truss has nailed the process of efficiently producing frames and trusses for bespoke house designs. As the largest frame and truss producer in New Zealand, PlaceMakers manufactures unique, high-quality frames and trusses for about 100 different designs per week. STRATEGIC MOVES Demand for PlaceMakers’ frame and truss (PMFT) has seen operations grow over the past two decades as builders recognised the cost effectiveness of pre-cut and pre-nailed framing. In 2008, to meet demand, PlaceMakers began improving its frame and truss production, consolidating 23 small and relatively inefficient plants to eight state-of-the-art operations that are more 14 accurate, highly efficient and in better locations around the country “For PlaceMakers customers, this means precisely cut and clearly marked components for faster and easier assembly on site,” says PlaceMakers national estimating and manufacturing manager Robert Grimmer. “The larger plants have greater capacity, the ability to respond quickly to market demand and improved efficiency that creates cost savings that can be passed onto customers. “For most builders, taking a set of plans, ordering in the timber then setting out, cutting and nailing framing takes so much time and precision that it’s not economical anymore,” says Robert. “It’s become a specialist trade – and PlaceMakers frame and truss plants have the equipment and expertise to supply that service at an affordable rate.” HOW IT WORKS Having fewer but larger manufacturing plants has significantly increased efficiency and capacity, offering builders great value for money. PMFT staff work with builders, architects, specifiers and engineers to provide a tailored solution for every type of job from small, simple houses to large, complex commercial projects. The clearly marked frames are delivered to site stacked in build sequence, wherever possible (depending on transport efficiency and stability, site requirements and health and safety considerations). According to builders, the clearly marked walls and wall intersections make identification easier and erection on site much faster. While frames are usually nailed together in the factory and delivered to site, there are some situations where assembling wall frames on site is required or preferred. As the construction industry prepares for the upcoming building boom, our good relationship with suppliers allows us to provide certainty for builders that we’ll have timber for their projects – PlaceMakers national estimating and manufacturing manager Robert Grimmer “For those customers who choose to build them themselves – such as in hard-toaccess worksites – the pre-cut, clearly marked timber makes it much easier to construct, saving time on the job and reducing waste,” says Robert. While PMFT aims to have Razer saws in all eight plants, the transition is still taking place and isn’t yet available everywhere. PMFT plants use Lumberlok, Gang-nail and Bowmac zinc, galvanised and stainless steel fastenings designed by Mitek, a company with 40 years’ experience within New Zealand. MEETING OUR CUSTOMERS NEEDS PMFT’s goal is to make its customers’ builds as simple and as smooth as possible. The staff can incorporate the balance of roof and loose timber within customer quotes and integrate engineered timber products for mid floors or garage lintels where specified. PlaceMakers also has a range of trucks and experienced drivers to deliver and place builders’ frames and trusses where they’re wanted onsite and PMFT staff liaise with builders to confirm an estimated delivery time. “Overall, our frame and truss plants aim to deliver in full and on time to wherever you need us,” says Robert. SOLID CONNECTIONS To ensure high quality and consistency in the materials we use, PlaceMakers only buys from major timber suppliers. As the construction industry prepares for the upcoming building boom, PlaceMakers’ strong supplier relationships allows it to provide certainty for builders that it will have timber for their projects. “As our customers take on more jobs, they want certainty that we can deliver, and we can give them that guarantee.” “Frame and Truss is a key aspect of PlaceMakers’ relationship with our builders – we see ourselves as more of a specialist sub-trade than a product supplier,” says Robert. “Design and truss layouts are integral to the building consent, so PMFT’s contribution is as critical to the build process as any other. PlaceMakers understands that and it’s reflected in the high quality of our work.” A PMFT detailer turns the designer’s plans into workshop drawings before well-trained, experienced staff begin the A Frame & Truss engineer sets up the Razer linear saw PlaceMakers' Frame & Truss employees assemble different frame and truss components 15 insurance builtIn Deciphering public liability insurance PLI is one of the most important policies a tradesman can have – but understanding all the terms contained within them can be tricky; that’s why the helpful guys at Builtin have provided a list of definitions to make things a bit clearer P LI is intended to protect you from the cost of accidentally damaging other people’s property or causing them injury. This article is intended to clarify some of the definitions contained within most general/public liability policies available from major insurers in New Zealand. The specific wording from different insurers will vary and you should seek the advice of an insurance professional, if necessary. Insurers will interpret and apply their own policy wording, depending on the specific circumstances of each individual claim. Damage/property damage: For a claim to be made, there must first be either accidental damage to property, loss of property (that isn’t actually damaged) or loss of use of property. Don’t labe l your tools , GPS them . Event/occurrence: For a claim to be made, the accidental damage must result from a single event. This event must be unforeseen and unintended from the standpoint of the policy holder. The All-New Transit Cargo Losing your tools on the job is one thing, but with all the room in the newly designed larger Transit Cargo, you might just need to GPS tag them. Test drive today. Key Features • SYNC® with Bluetooth® • Rear view camera • Cruise control • Safety features – DSC, • Front and rear parking sensors Roll Over Mitigation • Protective ﬂooring • Service intervals – 30,000 kms or every • Perimeter Anti-theft Alarm 12 months (whichever comes ﬁrst) ford.co.nz Faulty/defective workmanship: Unfortunately, there is no accepted For a event/occurrence claim to be made, the accidental damage must result from a single event. This event must be unforeseen and unintended from the standpoint of the policy holder insurance definition of faulty workmanship, which is why it can be such a contentious issue at claim time. Was damage caused accidentally or as a result of poor workmanship? Your view might be quite different from that of your insurance company. If your policy does not include cover for faulty workmanship, you could find your claim is declined. building industry, otherwise your liability for damage to a house you’ve built could be excluded from cover. This article is not comprehensive nor is intended to be legal advice, or a substitute for legal advice. About Builtin New Zealand Consequential loss/resultant damage: The policy can also cover the indirect costs of damage you cause: eg, the cost of lost sales due to a power failure, if you cut through a power cable, or the subsequent water damage to walls and carpets caused by a leaky pipe. Builtin New Zealand is a specialist in construction insurance, with policies tailored to meet the needs of builders & tradespeople, including cover for faulty workmanship and damage to the building you’re working on. For more information visit www. builtin.co.nz/Insurance or contact Ben Rickard at [email protected] builtin.co.nz or 0800 BUILTIN . Insured’s products: Your own products are not covered by the policy. This can include anything you have constructed once it is no longer in your possession or control. It’s important you have a policy that is tailored to the Circle the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning rather than just ‘participation’ is a key requirement of the LBP renewal process. 10) a b c What is the purpose of PLI? a) To protect you from the cost of accidentally damaging other people’s property or causing them injury. b) To protect you from stupid members of the public. c) To protect you from sudden or accidental damage to works specified in the contract. 11) a b c 12) a b c Why can faulty or defective workmanship be such a contentious issue at claim time? For an event/occurance claim to be made, what must the accidental damage result from? a) It’s difficult to determine where damage was caused accidentally or as a result of poor workmanship. b) The definition of faulty workmanship is so specific. c) Homeowners always blame the builder. a) An earthquake. b) A single event. c) A hand tool. NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation. 17 training beacon pathway damp, lack of ventilation, insufficient insulation and leaks. Renovations represent a real opportunity to solve these problems, so make sure your client thinks not just about the cosmetic factor, but also gets a house that is drier and healthier to live in. Stamp out the damp! The table below outlines some common problems contributing to moisture, as well as solutions for your clients. If it’s not obvious, it’s a good idea to get an accredited Home Performance Advisor (www.communityenergy. org.nz/training) or, if your council has one, an Eco Design Advisor (www. ecodesignadvisor.org.nz) to come and take a look at the house. They can talk to you and your client about potential solutions and the most effective way to make the house dry and healthy. About Beacon Pathway Beacon Pathway is an Incorporated Society committed to transforming New Zealand's homes and neighbourhoods through research and demonstration projects that show how to make homes more resource efficient, healthier to live in, adaptable, resilient and affordable. Getting advice For further information about Beacon Pathway visit Sometimes it’s hard to work out the underlying cause of dampness in a house. Problems Allow a month for every 25mm of thickness for a concrete slab floor to dry out Dampness and moisture problems are well-known features of many New Zealand houses. When undertaking renovations, or building new, there are some key ways to knock moisture problems on the head – or stop them from occurring in the first place T he biggest concern about damp homes relates to their effect on inhabitants’ health: internal moisture makes it harder to keep houses warm and encourages the growth of mould and breeding of dust mites – all of which can cause or worsen asthma, bronchitis and other breathing disorders. What to watch for when building new Although building design (orientation, insulation, ventilation) can make a big difference to whether houses will be damp, the way you build the house also has a huge impact. New houses usually have high internal moisture levels for up to two years after construction. Moisture comes from concrete, masonry, timber, plaster and paint – all of which take time to dry out. 18 www.beaconpathway.co.nz 95 litres of water, which needs to evaporate out even once it’s been cured. There’s a lot of water in a concrete slab. Wet concrete should have the minimum amount of water added to enable it to be workable – check the slump of concrete which arrives for your slab pour and don’t accept concrete which is too wet. There are a number of things you can do to reduce the amount of construction moisture, and therefore the drying time: • • Building during summer (particularly those early critical stages before the house is enclosed) can make a huge difference – concrete slabs and timber that has been rained on take a lot longer to dry out, even once enclosed. Ensure materials are dry before enclosing the house – materials dry much faster in open air. Timber framing with the 20% moisture allowed by the Building Code will still contribute around 200 litres of water into the average house. Regard the Building Code as a minimum and let timber dry out as much as possible. • Take particular care with concrete – 1m3 of concrete has around • Ensure there is a ground moisture barrier under both concrete slabs and suspended floors – about 45 litres of water per day comes out of the ground under a 93m2 house and 90 litres per day under a 186m2 house. Solving moisture problems in existing houses Many existing homes have dampness and moisture problems caused by a combination of factors, such as rising www.beaconpathway.co.nz Solution • Mould in the house • Condensation on windows Bathroom extract ventilation ducted to the outside (not the roof!). Locate the unit close to or above the shower/bath and make sure the fan size is big enough for the bathroom – 25 litres/second is usually sufficient but larger fans may be needed for big bathrooms • Dampness in the kitchen • Cooking smells • Oils and dirt covering surfaces in the kitchen Kitchen rangehood ducted to the outside – sized to cover the whole hob and close enough to the hob to be effective • Condensation on windows • House being hard to heat • Cold bedrooms Replace single-glazed windows with double glazing. Specify thermally broken aluminium or timber frames • Mould or musty smells in living and bedroom areas Make sure the house is well insulated – in the ceiling, walls and, if possible, under the floor. Aim to bring the whole house up to at least Code insulation levels – ideally better than Code • Rising damp – symptoms are often seen on ceilings, the upper part of walls and in the roof cavity • General dampness in the house – ground moisture can contribute more than half the total moisture in a house Retrofit a ground vapour barrier under suspended timber floors (see photo on right) • Mould and musty smells in the house • Difficulty in heating • Dirt and lint in the laundry area Externally vent clothes dryer • Mould or musty smells in living and bedroom areas • General dampness in the house Install a well-located washing line – under cover if possible • General dampness in the house Fix leaks – roof, cladding, windows, doors and plumbing Ground vapour barriers can stop moisture rising out of the ground into the house Circle the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning rather than just ‘participation’ is a key requirement of the LBP renewal process. 13) a b c 14) a b c 15) a b c What is the biggest concern about moisture and damp in houses? As a builder, what can you do to reduce the amount of construction moisture? According to Beacon, what opportunity do renovations present? a) Adverse health effects. b) The effect on water supply levels. c) How much building work it will give rise to. a) Ensure materials are dry before enclosing the house. b) Follow the Building Code to the letter. c) Use the portaloos provided onsite. a) A chance to quote low and then charge high for ‘unforeseen issues’. b) A chance to resolve dampness and moisture problems. c) None – they are unprofitable and a drain on resources. NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation. 19 TIPS Crowe Horwath Improve insight into your business Debating whether an accounting system is the right choice? Crowe Horwath outlines how it can improve your business processes and help with forecasting W e’ve seen it all before, right? A company with high sales, decent profits and lots of guys doing the dirty work while the owner oversees the operation; all of a sudden, the employees are gone, the business has fallen over and the owner is left to work off numerous debts to creditors and the IRD for the rest of his days. Where did it all go wrong? Time really is money A common issue among business owners is the time spent at the end of the day reconciling their bank accounts, preparing invoices and chasing up debts. During busy periods, these processes can often run into the small hours of the morning; before you know it, you’re back out on the tools and doing it all over again. While that question can’t be answered simply, one thing is for certain: the better a business’ accounting system, the less likely it will fail. There is now a range of systems available to business owners. More than ever, they can be moulded to suit your business, rather than the other way around. From Xero to MYOB and from ‘the cloud’ to the desktop, the options are varied. There are no longer any excuses for not knowing how your business is tracking. Modern accounting systems can provide you with an up-to-the-minute, year-to-date profit figure, GST position, cash balance and more. Some can even provide you with an immediate reconciliation between the amount you’ve charged for a job, and the amount you have left in your budget. This is extremely powerful information and can help to plan future 20 www.crowehorwath.co.nz www.ccanz.org.nz Modern accounting systems can help put an end to, or greatly lessen, the long nights spent in the office. If you’re harnessing the right systems for your business, you no longer have to be a slave to bookwork. If you aren’t already harnessing the power of these accounting systems, you’re only short-changing yourself and your business. More Information If you have questions about accounting systems, whether you want to enhance your current system or are looking to change/ add systems, please contact Peter van der Heijden at [email protected] crowehorwath.co.nz; or contact your local Crowe Horwath advisor. So, do yourself and your business a favour and look into getting an accounting system that works for you – the insight and opportunities are abundant. For the contact details of your local office, please visit: www.crowehorwath.co.nz/ locations or phone 0800 494 569. The better a business’ accounting system, the less likely it will fail Talkin’ bout a revolution Want to reconcile your bank transactions in the shortest time possible? No problem! Need to prepare quotes and email them directly to your customers? Easy! GST returns at the push of a button? Of course! How about a system that allows you to prepare and email invoices to your customers on your smartphone without leaving the site? You can do that, too. Put simply, these accounting systems can revolutionise your business. The ability to understand your business – the impact of late payers, the opportunity to plan out your expenditure during lean times and the chances available during the busy times – is absolutely priceless. The value of real-time information means you and your accountant can both look into the cloud at any time, from any location and adapt instantaneously. Using a modern accounting system could reduce those late nights spent reconciling bank accounts, preparing invoices and chasing up debts tax payments, as well as organising invoice payment and receipt dates – all crucial for businesses at any stage of their lifecycle. Put simply, these accounting systems can revolutionise your business performance on a monthly, quarterly or bi-annual basis. The benefit of being able to drill down into specific areas of concern – without having to dig through records in your office – is invaluable. Conversely, if you don’t have a budget, the systems can help you set one up. Online accounting systems can help you answer all sorts of questions: • Keeping track If your business already employs budgeting, most systems can incorporate these and you can track your Can I afford to pay all my creditors this month? • Am I being too lenient on my debtors? • Is buying that new ute on hire purchase a good idea? The most precious commodity of any business person is time. The old saying ‘time is money’ has never been more accurate. The more time your spend managing your own financials, the less time you have to quote for new work, find new clients, review processes and profitability on current projects and, of course, spend time with family and friends. Online accounting systems can help you determine whether buying a new ute on hire purchase is a wise decision Circle the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning rather than just ‘participation’ is a key requirement of the LBP renewal process. 16) a b c What can modern-day accounting systems NOT provide? a) A sexy secretary to bring you coffee. b) An up-to-the-minute, year-to-date profit figure. c) Your GST position and cash balance. 17) a b c Online modern-day accounting systems can help you answer all sorts of questions, such as: a) Can I afford to pay all my creditors this month? b) Am I being too lenient on my debtors? c) Does anything eat wasps? 18) a b c How can the right accounting system help you avoid spending all night on bookwork? a) It manages most of the finances for you. b) Elves do the work while you sleep. c) It can shut down at a set time. NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation. 21 tips THE SUCCESSFUL BUILDER To avoid causing your customers surprise and angst, check that a proposed job fits within their budget before incurring any cost in designing or pricing. You may not be able to give a fixed price, but in most situations you can use your best judgement and give a ball park figure (it helps to include a best and worst scenario). Listening carefully to their response can save you both time and money. Keep your cash flowing Furthermore, it’s worth enquiring whether or not a lender is involved, since this is likely to affect how and when you might be paid. Simply ask if there are any other parties involved financially. It pays to be sure about this because there is nothing worse than starting a job and not being paid the final amount because your client runs out of money, or a bank holds up payment. 3. Take a decent deposit Homeowners often aren’t aware how much a renovation can cost – once the builders began working on this vintage Wellington home, unforeseen complications made the cost of the renovation increase significantly. Make sure you explain this type of possibility to your clients to avoid unpleasant surprises Don’t get stuck in a situation where you haven’t been paid for months but you can’t afford to stop working – use the tips below to ensure you have sufficient cash flow Y paid on time, every time. Here are five financial disciplines that, when adopted properly, can help make non-paying clients a thing of the past. 1. Ensure your building contracts include your financial terms and conditions ou’ve heard the story: what Check over your agreements to started as a dream job – large, ensure that your terms and conditions challenging and profitable – has set out your invoicing and payment now become unbearable; your client expectations, such as progress has stopped paying bills on time, payments. Make sure that you have questions each and every line item and quibbles over your meagre margins; and, the right to stop work (and remove materials) if a progress payment is all the while, your overdraft is growing. not made on time. Clients like this can make the life of For example, if your normal process a small builder exasperating in any is weekly invoicing for payment of environment. In fact, it seems that all costs incurred in the preceding every builder I’ve met has at least week (labour, materials and one such story to tell. But it doesn’t subcontractors), make sure your need to get to this point; it’s possible agreements specify this process and stipulate when the payment is to organise your business so you’re 22 www.thesuccessfulbuilder.com www.ccanz.org.nz due. Also check that your terms and conditions state that “should payment be delayed, the costs of debt recovery will be added to any outstanding payments”. While most building association agreements are excellent, they may need to be adjusted to suit your particular situation. Having your lawyer check over these is a worthwhile investment, as it’s better to pay them a small fee than incur substantial losses down the track. 2. Discuss your client’s financial position before incurring costs Most people know how much a replacement tyre is likely to cost, so they’re not alarmed when the bill is presented. But most homeowners have no idea how much a renovation can amount to, particularly if there are hidden problems to fix. It costs money to prepare free estimates and quotes and while these costs may be paid for by the profits from your jobs, this profit is not usually realised until after the client has made their final payment. Also, once an agreement is signed, it takes time and money to gear up a job – you may have to spend money recruiting new staff or purchasing new equipment. project estimation and preparation, in builder disputes and builders losing addition to a fair proportion of the money. Again and again, I come across building and labour costs that will be builders who start on variations without incurred before the first payment is getting their client’s authorisation received. Try not to be your client’s bank. “because it needs to be done”. While they’re allowed to carry out variations 4. Keep short accounts that need to be done, clients are allowed to refuse to pay for work they It’s not unreasonable to expect payment did not authorise. on a weekly (or fortnightly) basis. Your client may believe that, because you have monthly terms with your suppliers, he/she should have the same arrangement with you. However, there is no requirement for you to do so. Your arrangement with your supplier is a business-to-business relationship, built on your reputation and your credit history. You cannot afford not to pay your suppliers on time, as failure to do so will affect your ability to make future purchases. It may even close you down. Your client’s arrangement with you is different. For them, it’s a ‘one off’ purchase and, if they don’t pay on time, it doesn’t threaten their income one bit – but it does threaten yours. While it might seem cumbersome, it is cheaper to take the time and effort to communicate with your client and get them on board (in writing!) before starting any variation. Maximise the good times While it might be possible to survive a bad paying client in good times, an astute builder makes use of the opportunity good times brings to review, strengthen and update client payment systems. It’s the disciplines adhered to in good times that enable a business to make the most of growth and survive tough times. About The Successful Builder It’s completely acceptable – and should be expected – that your client pays you in a timely manner, so you can pay your team, suppliers and subcontractors in a timely manner as well. This should ensure the smooth financial operation of your business. Carrying these early costs for the duration of the whole job can affect cash flow and limit your purchasing power, so request a decent deposit. 5. Variations – describe them in detail and gain a signature for each one before beginning To determine a fair deposit fee, make a rough calculation of the costs of In my experience, unpaid variations are the single biggest reason for owner- Graeme Owen, based in Auckland, is a builders’ business coach. Since 2006, he has helped builders get off the tools, make decent money, and free up time for family, fishing, and enjoying sports. Get his free ebook: 3 Reasons Builders Lose Money and How to Fix Them for High Profits at http:// TheSuccessfulBuilder.com Circle the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning rather than just ‘participation’ is a key requirement of the LBP renewal process. 19) a b c 20) a b c 21) a b c Why is it recommended you discuss how much a renovation can cost before the job? What is NOT recommended be covered by a deposit? Why should suppliers be on monthly terms but not homeowners? a) Because most homeowners have no idea how much they can amount to. b) To determine a fair deposit fee. c) To ensure the proposed job fits within their budget before incurring any costs of your own. a) Celebratory drinks for the boys. b) Preparation and estimation costs. c) Building and labour costs before the first payment. a) Because you and your supplier have a business-to-business relationship and not paying them could affect your business. b) Homeowners usually get paid fortnightly. c) Because transactions with suppliers are usually for larger sums of money. NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation. 23 PROTECT YOURSELF FROM THE COLD WHEN LAYING YOUR NEXT FLOOR WITH A * FREE THERMAL PACK WHEN YOU SPEND 1000 $ (+ GST) ON ANY STRANDFLOOR® PRODUCT Sponsorship sport news Hurricanes get a kick from lending a hand Wellington’s Aotea College kids enjoy the perks of winning the Hurricanes ‘Lend a Helping Hand’ 2013 initiative W hile the Canes’ on-field goal for 2014 is the Investec Super Rugby playoffs, its off-field focus continues to be helping the local community, with support from PlaceMakers. In May, Hurricanes players and representatives from PlaceMakers Porirua visited Wellington Aotea College to check out its revamped sports pavilion, which was funded by the ‘Lend a Helping Hand’ initiative. Initiated by the Hurricanes in 2012, when they helped give Porirua’s Rangikura Primary School goal posts for its rugby field, last year the team decided to partner with PlaceMakers. “We assisted in choosing the winner from several school group and charity entries, and supplied the building materials,” said PlaceMakers Porirua owner operator Boyd Kenna. “It’s a great initiative to be a part of and the school is really happy with the outcome.” The ‘Lend a Helping Hand’ partners provided new Suntuf corrugated roofing, Once they finished running drills with the students, the Hurricanes spent time signing autographs Strandfloor® is a high density, reconstituted timber panel, specifically formulated for use as a residential and commercial interior floor platform. Strandfloor H3.1® features an improved resin formula with the addition of insecticide and fungicide, this provides an alternative solution to plywood and meets NZS 3602 requirements for timber floors in wet areas. 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The Hurricanes were pleased to see the completed pavilion and even got to experience the renovated facility by running the students through some skills and drills during their visit! Meanwhile, the Hurricanes are putting in plenty of hard work on the field to meet the challenge of another tough season. With an impressive number of wins already under their belt, and the team appearing to rediscover their form and style, it could be the year for the Capital’s team! l-r PlaceMakers Porirua employee Tank Lapana, Hurricane Brendon Edmonds, Aotea College captain of the 1st XV Sam Filipo, Aotea College principal Kate Gainsford, Hurricane John Schwalger and PlaceMakers Porirua JV Boyd Kenna came together to celebrate the new pavillian june 2014 1) 7) 13) 19) 2) 8) 14) 20) 3) 9) 15) 21) 4) 10) 16) For ease of record keeping, use this coupon to collate your answers from within this issue of Under Construction and then sign and date it as proof of your own learning. 5) 11) 17) Signature 6) 12) 18) Date NB: If you have other LBPs on your team, ensure they’re registered with PlaceMakers to receive their own copy of Under Construction! 25 SHARP PRICES ON THESE PARMCO APPLIANCE PACKS PARMCO PACK ESSENTIAL 4 STAINLESS STEEL GAS PARMCO PACK ESSENTIAL 2 STAINLESS STEEL ELECTRIC ESSENTIAL • Parmco 600mm canopy stainless steel • Parmco 600mm gas hob stainless steel • Parmco waste disposal GD-2 with airswitch • Parmco 5 function stainless steel oven • Parmco economy stainless steel dishwasher 1699+GST $ PARMCO PACK LIFESTYLE 2 STAINLESS STEEL CERAMIC lifestyle • Parmco 900mm canopy stainless steel • Parmco 600mm ceramic hob • Parmco waste disposal GD-3 with airswitch • Parmco 8 function stainless steel oven • Parmco freestanding stainless steel dishwasher 2649+GST $ PARMCO PACK DESIGNER 1 STAINLESS STEEL INDUCTION designer • Parmco 900mm low canopy stainless steel • Parmco 600mm induction hob touch • Parmco GD-5 waste disposal with airswitch • Parmco 10 function stainless steel oven • Parmco digital stainless steel dishwasher 3349+GST $ $ • Parmco 600mm canopy stainless steel • Parmco 600mm electric hob stainless steel • Parmco waste disposal GD-2 with airswitch • Parmco 5 function stainless steel oven • Parmco economy stainless steel dishwasher 1699+GST PARMCO PACK LIFESTYLE 3 STAINLESS STEEL CERAMIC $ • Parmco 900mm curved glass canopy stainless steel • Parmco 600mm ceramic hob • Parmco waste disposal GD-3 with airswitch • Parmco 8 function stainless steel oven • Parmco freestanding stainless steel dishwasher 2649+GST PARMCO PACK DESIGNER 2 STAINLESS STEEL MULTI-ZONE • Parmco 900mm low canopy stainless steel • Parmco 600mm induction hob touch • Parmco GD-5 waste disposal with airswitch • Parmco 9 function multi-zone touch stainless steel oven • Parmco digital stainless steel dishwasher 3349+GST $ Prices available exclusively to trade account customers. All prices exclude GST. Products featured may not be stocked in all stores but, where available, can be ordered in at the advertised price. Offers valid from 1st - 30th June 2014. OFFERS VALID AT YOUR LOCAL PLACEMAKERS STORE BETWEEN 1ST – 30TH JUNE 2014 NORTHLAND Kaitaia Kerikeri Mangawhai Whangarei AUCKLAND Albany Cook St, City Helensville Mt Wellington New Lynn Pakuranga Pukekohe 408 9020 407 4820 431 4236 470 3970 414 0900 356 2899 420 9150 570 8300 825 0088 538 0200 237 0020 Silverdale Waiheke Island Wairau Park Westgate 424 9000 372 0060 444 5155 815 6800 WAIKATO/BAY OF PLENTY Clarence St, Hamilton 838 0716 Huntly 828 2000 Morrinsville 889 8057 Mt Maunganui 575 4009 Rotorua 345 6892 Taupo 376 0220 Te Kuiti 878 8149 Te Rapa 850 0190 Thames 868 0130 Whakatane 306 0320 Whitianga 867 2000 CENTRAL NORTH ISLAND Hawera 278 6013 Hawkes Bay 843 5816 Ohakune 385 8414 New Plymouth 755 9040 Palmerston North 353 5777 Wanganui 349 1919 WELLINGTON Evans Bay 387 8692 Hutt City 568 5042 Kaiwharawhara 472 1616 Levin 366 0960 Kapiti 296 1086 Porirua 237 9189 UPPER SOUTH ISLAND Blenheim 520 6030 Motueka 528 8164 Port Nelson 547 9111 Saxton Rd 547 9111 CHRISTCHURCH Antigua Street Cranford Street Hornby Riccarton CANTERBURY Ashburton Timaru Twizel 344 8950 375 4119 344 8950 348 2039 308 9099 687 4035 435 3133 Limited stock of this product is available. 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