dec/january 2012 inhouse

Common helpline questions answered – Pgs 8-9,12-13

INHOUSE

Activity approved by the Registrar

December 2011 / January 2012

The official magazine of Certified Builders Association of New Zealand Inc

All the tools you need for 2012

Merry Christmas

Pgs 18, 19

Lights ... camera ... action ...

Preparing your Commmunity of Craftsmen Pgs 24, 25

2

New CBANZ website goes live

Easier for the public to understand and locate a

Certified builder

Improved search functions

As part of our CBANZ rebranding we have upgraded

and revamped our website to reflect the new professional era. The new look and

content make it clear what it means to be a Certified Builder and why the public can

have confidence in our brand.

Updated, modern look

Reorganised to reflect the changing environment for the building industry in

New Zealand.

Contents

Holiday season information pg 4

New 3604 Handbook pg 5

ToolTube pg 6

Tax risk falls mainly on employers – PWC pg 8,9

Most common Helpdesk questions – Geoff Hardy pg 12,13

BRANZ updates House Building Guide Pg 14

Don’t throw those old records out Pg 15

CBA Contracts and Insurances pg 16,17

Lights, camera, action ... pg 18,19

ITaB news pg 20,21

Licensed? Show it! pg 23

Preparing your Community of Craftsmen pg 24,25

Helplines pg 26

Restricted Building Work coming into force pg 27

Conference 2012 pg 28,29

Are you prepared for an audit pg 30

Hunting & Fishing giveaway pg 31

Be Sun Sensible pg 32,33

Summer leave pg 33

Affordable High Performance house pg 34,35

Q&A The Law at Work – E2Law pg 36,37

Putting CBANZ on the map in Wellington pg 41

Workshops on Restricted Building Work pg 42

Students work on own house project pg 43

Message

3

CBANZ is making sure you have the right tools to run your business through 2012 and into the future.

ON THE COVER

Contact CBANZ®

Farming House 102 - 104 Spring Street

PO Box 13405, Tauranga Central, Tauranga 3141 Telephone 07 927 7720 Freephone 0800 CERTIFIED

Facsimile 07 927 7721Email [email protected] Web www.certified.co.nz

This year would have to have been one of the

toughest in which to do business. Throughout

the year the forecast of workloads has been

up and down, you have to wonder how much

damage this is doing to the industry and the

effect this is going to have going forward when

the potential work comes on tap.

I believe there will be two economies in 2012

– one being Christchurch/Auckland, the second

the rest of New Zealand. Doing business in the

second economy will be hard and tough, so

spend time checking you have your costings or

tenders correct. You will find you are spending

the greater time in following up on work,

following leads, but those who put in the hard

yards will get the rewards.

A small reminder that 1st March 2012 is looming

and now is the time to check that all your sub

contractors have or will have the correct Licence

to operate under the LBP scheme, as there are

some heavy penalties if you are outside that

scope.

To all our members who have been involved

with Christchurch throughout the year, make

sure you have quality time with your family

and loved ones over the Christmas break, it has

been very tough for you down there. If you

are coming back to start your business up again

after being away for a lengthy period of time,

you will need to put in a big effort to get back

to what you had before.

I would like to say a big thanks to the staff in

the National Support Office for the support and

extra effort you are putting in at the moment.

We all appreciate the effort.

To the Board, Presidents, National Support

Office, members and all our partners, Merry

Christmas and a happy New Year to you all.

Enjoy the break and look forward to 2012 as

the beginning of a brighter future ahead, with

a heavy work load.

Allan Shaw

CBANZ Chairman

from the Chairman

newsassociation

4

Market yourself and your company!

Summer is on its way! Make sure

you’ve got yourself covered!

Grab one of these awesome caps

for just $20.00.

Price includes the CBANZ Logo

embroidered on the front of the

cap:

• 100% Cotton

• Velcro closure

Why not get your caps

embroidered with your company

name or logo just like Digby

Toothill did!

Digby chose to place the CBANZ

logo on the back of his caps.

Contact Millie T at National

Support office and she will

organise it for you!

Contact Millie T ph 07 927 7720 or

email [email protected]

National Support Office would like

to remind members to order any

contracts and merchandise before

20th December to allow for

holiday mail delivery times prior to our

office closure at noon on the 23rd December.

Orders received after 10am on the 23rd

December may not be processed until the

16th January when the office reopens.

Get your business in shape before Christmas

STOP PRESS!

CEO ANNOUNCEMENTOn behalf of the Board of Certified Builders Association we take

pleasure in announcing that Mr Grant Florence has been appointed

Chief Executive Officer and officially took this position on the 5th

December 2011. Grant brings a wealth of knowledge to this role

and we all look forward to working with him.

Grant can be contacted via email [email protected] or

ph 021 906 487.

– Chairman, Board of Directors, Allan Shaw

5

colour coding of the figures and tables

replicates that of the Standard.

SNZ HB 3604 has been designed to

provide as much on-site durability for

users as possible. It is slightly larger than

A5 and weighs approximately 1.2kg.

The cover is made of polypropylene for

protection and a magnetic strip makes

for easy closing. Handbook pages have

2 drill holes and are held in place by a

lever-arch mechanism (the strongest

available) which enables future updates

to be added quickly and easily. A handy

half-pocket has been added to the

inside front cover, and an A5 plastic

pocket is also included for holding

papers. Pages have been printed on

heavier weight paper which has then

been ‘thin-laminated’. While pages

are not completely tear-proof or fully

waterproof, the thin-lamination has

been used to help ensure Handbooks

will stand up to a fair amount of wear

and tear.

Purchase your copy for the CBANZ

members special rate of $160.75 exc gst.

Contact Millie T at National Support

Office or order your copy online

through the members section of the

Certified Builders website.

Ph 0800 237 843 or email

[email protected]

Merry Christmas

and a joyous New Year to all our

valued members, your families and

staff.

To our Strategic Business Partners

and Regional Associates thank you

for your valued support through

2011, we look forward to a

continued alliance in 2012.

Holiday HoursPlease note National Support

Office will be closing down

for Christmas 12pm, 23rd

December, and reopening at 8am

on Monday 16th January, 2012.

National Support Office close down

New 3604 on-site handbook

The new Standards NZ Handbook

3604:2011 provides users with a

collection of figures and tables

extracted from NZS 3604:2011 that are

commonly used on-site. The Handbook

directs users to the appropriate section

of the Standard for full information.

SNZ HB 3604:2011 has been designed

as an on-site reference guide. The

development committee advises it must

not be used as a substitute for the full

Standard, NZS 3604:2011. Users of SNZ

HB 3604 should always refer to the full

Standard when they require detailed

and complete information. On-site

building consent requirements of the

Building Consent Authority (BCA) take

precedence over the guidance in SNZ

HB 3604.

The handbook is laid out in four

sections based on the construction

sequence for a timber-framed building.

To ensure that it aligns with NZS 3604,

the collection of figures

and tables are

numbered

identically and

KoolDri Polos for Summer - $35Grab a KoolDri Polo for the summer!

They are 170gm micromesh fabric with

kooldri moisture removal qualities to

keep you cool and dry and they are quick

drying too!

Different colour options available as seen

at right.

Polos come with the CBANZ logo and

can include your company logo. Email

[email protected] for a quote.

6

Now available to gold card members, enter this link into your address bar/URL

http://www.certified.co.nz/index.php/pi_pageid/199

and watch the first of several educational videos that we will be bringing you to make your lives easier.

The video will be no more than 10 minutes long and not full of jargon.

• The first will step you through filling out your licensing application through the qualified

streamlined process.

• The second video demonstrates the non qualified process for the site licence.

• In the third video Jason McClintock gives an overview of life with licensing, preparing

yourself for when the assessor calls and why you may wish to consider a site licence.

CBANZ will keep you informed when more ToolTube become available.

ToolTube - the CBANZ Video Channel bringing business education into your home

6

77

New Guidance on Barrier Design

is available on the website of the

Department of Building and Housing

(www.dbh.govt.nz/guidance-

information).

The guidance has been written for

designers, manufacturers and installers of

barriers by a working group of industry

specialists.

Users of the document are guided on

how to design and install barriers to

Building Code standard. The document

gives a detailed overview of the main

criteria for designers and installers to

work through.

The guidance provides information

for the design and construction of

barriers made of glass, timber, metals

and concrete. It is based on the current

Standards series for loadings, AS/NZS

1170, and applies to:

• Barriers to decks, stairs and landings,

and

• Walls, glazing (including screens

and full-height glazing), fences and

other building elements intended to

protect against a fall of one metre or

more.

Designers and installers of barriers can

use the new guidance now.

From 1 February 2012, B1/AS2 will no

longer be an Acceptable Solution

B1/AS2 will no longer be an Acceptable

Solution from 1 February 2012.

The Acceptable Solution is based on

the loadings given in the outdated NZS

4203:1992 and not the current Standard

series AS/NZS 1170.

The new guidance document covers

barriers built from the range of materials

used today, whereas B1/AS2 provides a

solution for timber barriers only.

New guidance comprehensive

The Guidance on Barrier Design pulls

together design and construction

information for all the Building Code

clauses that relate to barriers. These are:

• B1: Structure

• B2: Durability

• D1: Access routes

• E2: External Moisture

• F2: Hazardous building materials

• F4: Safety from falling.

A useful checklist for building consent

applications has also been included

for designers and Building Consent

Authorities.

New Guidance on Barrier Design published

88

Steve Brocklebank provides general

business, accounting and tax advice

for PricewaterhouseCoopers.

Steve can be contacted on

Ph 03 470 3615 or 027 433 6025


We lead into Christmas 2011 with some sobering comments to temper the celebrations. It is always worth considering the downside risk when being asked to assist with ‘minimising‘ tax for workers /contractors. Most of the risk falls back on the employer or the taxpayer, so getting the right advice is important and cost effective, in the long term. We trust you will find the following advice helpful as it is an area that regularly features in our Helpline calls.

IRD audits, evasion and avoidance

Whilst the IRD is suffering a major

cutback in resources as a result of the

ongoing fallout from the global financial

crisis, their resources in Audit and

Investigations are achieving better than

budgeted results. At the same time it is

fair to say that the IRD are on somewhat

of an unprecedented winning streak in

avoidance cases, with a major shift in

mindset of the judiciary in the past half

a dozen years. Add to this additional

investigation funding promised in the

various election promises and the mood

in the audit and investigations side of the

IRD is bullish.

For the past couple of years the IRD have

announced that they are focusing on

the hidden or black economy in various

industries including hospitality and scrap

metal. By the hidden economy they

mean the likes of unreturned income

from cash jobs and paying wages in cash.

This type of offending is tax evasion,

a criminal offence, which can carry

significant penalties, including jail time.

To nobody’s surprise, in July this year

the IRD officially announced that the

construction industry had been added to

their watch-list of industries where tax

evasion is thought to be common.

Other than the cash job type scenario

another relevant area of IRD focus for

the construction industry is improper

GST claims. The Government has taken

some steps to combat this issue with GST

by changing the way that GST is dealt

with on the sale of land, but this does

not prevent fraud occurring through

‘artificial’ transactions.

The IRD have been improving and

refining their investigations tools and

systems over the past years and based on

the recent data, this seems to be paying

off for them. Particular improvements

have been made in benchmarking of

data and matching of data from multiple

sources. These tools have enabled

the IRD to target particular taxpayers

for further investigation. A common

example of data matching is to compare

a person’s assets against their declared

income to check if a person’s assets

exceed what someone earning that

amount would reasonably be expected to

be able to afford.

As well as smarter internal methods,

the IRD are now beginning to actively

encourage anonymous tips about

suspected evasion or avoidance.

For the reasons above, the chances of getting caught for evading or avoiding tax have increased in the past few years, although the IRD freely admits they will never stop the hidden economy.

While evasion (a criminal offence) is

high on the IRD’s radar, there is also

a strong push at the lesser offence of

tax avoidance. Tax avoidance is not a

criminal offence, but it can result in large

monetary penalties being imposed (up to

100% of the tax avoided).

The IRD’s main focus for avoidance at

present is where personal income is

diverted away from the person who

should have derived it to reduce tax or

to gain access to social support such as

Working For Families. This scenario arises

Be aware – Tax risk falls mainly on employers

8

9

Be aware – Tax risk falls mainly on employersfrom a recent Supreme Court decision

involving surgeons who traded through

a company but only paid themselves a

fraction of what they had earned when

they previously traded as sole traders.

The IRD has announced that due to a

lack of resources, they will focus on the

extreme scenarios in the first instance.

Whilst there may be cases where a

building company is paying its owner/

operator a low salary and retaining the

profits, we would not expect that these

would be the extreme cases the IRD are

concerned with, especially given the

relatively poor state of the construction

industry at present.

Unreturned income on property has been

a major area of IRD focus since around

2005 and it is our experience that the IRD

commonly request information about

land sales. The IRD has observed that

compliance is generally poor on the tax

treatment of the sale of property, and

we agree. For those involved in the

building industry, the mindset should be

to assume that the sale of land will be

taxable, and advice should be sought to

confirm if there are any reasons why the

sale of land should not be taxed.

The common, if not standard, IRD

practice now is to contact taxpayers

before an audit/investigation commences

with an information request or risk

review. That initial letter will give the

taxpayer an opportunity to make a

voluntary disclosure, which is simply an

admission of an error before the IRD

find it. Where a voluntary disclosure is

made before an audit is commenced,

the penalties charged are significantly

reduced and generally criminal charges

will not be pursued. Therefore, if the

IRD contact you for anything other than

routine information (such as clarifying a

simple error in a tax return) we strongly

recommend that you seek professional

advice to see if there are any errors that

you should disclose.

Best wishes to all members and families

for a safe and happy Christmas and

holiday break.

9

11

James Hardie has unveiled a new brand to the New Zealand market. The culmination of years of research and development, the Scyon® range aimsto counteract the fickle whims of Mother Nature.

The product range combines workability

and durability with simplicity.

This is achieved in the advanced cement

composite of Scyon®, which harnesses

the strength of the tough natural

elements that would otherwise act

against it.

By extracting these properties, Scyon®

pioneers a smarter way to build from the

moment of manufacture right through to

installation.

Michelle Cherrington, Marketing

Communications Manager, James Hardie

New Zealand, said that ‘Scyon® products

not only afford their users a smarter way

to build but also have this efficiency and

sustainability built right in’.

By using renewable natural materials like

recycled water and plantation pulp,

the makeup of Scyon® ensures a viable

and sustainable future for New Zealand.

The products in the Scyon® range include:

Scyon® Linea® Weatherboard:

Designed with the relentless New Zealand

elements in mind, Scyon® Linea®

Weatherboard provides peace of mind

long after installation.

Scyon® Axon® Panel: With its upright

grooves and resilient makeup, Scyon®

Axon® Panel is vertical engineering at its

best.

Scyon® Stria® Cladding: A great

alternative to brick and render, Scyon®

Stria®. Cladding is a modern and efficient

way to achieve the decorative render

look.

Scyon® Axent™ Trim and Fascia:

Formerly known as CLD® Trim and CLD®

Fascia, Scyon® Axent™ Trim and Fascia

provide the same reliable protection on

window and door trim and roof fascia

that is provided by all Scyon® products.

Scyon® Secura™ Interior & Exterior

Flooring: Providing protection against

moisture on interior flooring and tile

finished decks and balconies over timber

or lightweight steel floor joists, Scyon®

James Hardie launches Scyon® in NZ

Secura™ Interior and Exterior Flooring is

as workable as it is durable.

More information about performance,

installation, warranties and warnings can

be found at scyon.co.nz

Should I Fix a Leaky Home?

These jobs are definitely more risky, but

only because it is notoriously hard to stop

water getting in, water is a latent defect

that can cause serious damage, and

homeowners now have an expectation

that someone will always be accountable.

So only do the low-risk jobs. Don’t do the

jobs where the owner wants the damage

repaired quietly without any word to the

Council so he can pass the problem on to

an unsuspecting purchaser. Only do the

jobs where the owner wants the house

fixed properly, he can afford it, an expert

has identified all the problems, a designer

has prepared plans & specifications to

deal with them, and the Council has

issued a building consent.

Even then, you need some special clauses

in your building contract that spell out

exactly where your responsibilities begin

Geoff Hardy is a specialist

commercial lawyer in Auckland

and also a member of the

CBANZ Board.

Contact Geoff on 09 379 0700

[email protected].

Most common helpdesk questions

and end, just in case the leaks do return

within the next 10 years. And to become

even better informed, sign up to one

of the DBH’s one day seminars on leaky

building remediation, which are excellent

value. There is one scheduled for both

Auckland and Wellington in February

2012, but if there is sufficient demand

they may schedule more.

How Can I Get The Final Payment Out of the Homeowner?

Ideally you will have got a deposit

that you carried through the entire

project, so you could set it off against

your final invoice. But if that is not the

case (and it is rare) then you have to

look for alternative leverage. On a full

build project (rather than additions and

alterations) you may be able to withhold

possession, although the owners usually

find a way to beat that. Typically the

owners are in the driver’s seat because

they are in possession of the house and

also the final instalment.

You can withhold producer statements

or documentation required for the code

compliance certificate, but that generally

doesn’t trouble the owners unduly,

nor does the fact that their guarantee

doesn’t take effect until they have paid

you. Although the Disputes Tribunals are

quick and inexpensive, it is dangerous to

file a claim there because the owners can

manufacture a substantial counterclaim

and the Referees usually sympathise

with the owners. If instead you follow

the procedure in the building contract,

you will be negotiating, mediating and

arbitrating until the cows come home,

and at considerable cost.

The same is true of the District Court,

whether you are enforcing a payment

claim or just asking the Court to settle the

dispute. So the only feasible option is to

use adjudication under the Construction

Contracts Act (“CCA”). This is a quick

and reasonably cost-effective system that

delivers a reliable result that the owner

usually complies with.

Can the Homeowner Get Someone Else in to Finish My Work?

If the owners have simply had a gutsfull

of you, they can’t throw you off-site

halfway through the project, unless the

building contract expressly gives them

that right, or you agree to go. Similarly

you can’t just walk off the job. You

are obliged (and entitled) to finish the

building, and they have to pay you in full.

Normally no-one can cancel a building

contract without the other party’s

consent.

However it is different if the other

party has breached the contract. Typical

breaches by the builder include defective

workmanship, massive cost overruns,

or excessive delays. In that case the

owners have rights under the Consumer

Guarantees Act. But if it’s defective

workmanship they want to get fixed,

they have to give you a reasonable

opportunity to fix it before bringing

someone else in. The only situations

12

13

where they can bring in another builder are where you have

failed to fix the defects, or it’s a cost overrun or excessive delay

that is unjustified and can’t be remedied, or where the defects are

“substantial” (ie. very serious).

If you have a written building contract then it will also say when

the contract can be terminated and how to go about it. If you

don’t have a written contract then you fall back on the Contractual

Remedies Act. This allows the owners to cancel the building

contract, but only where you have permanently walked off the job,

or they’ve been conned into signing the contract in the first place,

or your breach of contract is very serious. You have the same rights

where the owners have done those things.

If the job is covered by a Homefirst guarantee, the owners can

get the replacement builder paid for by Contractors Bonding Ltd

(“CBL”). But bear in mind that CBL won’t pay out unless you either

can’t or won’t complete the job. If you’re merely in dispute with

the owners, CBL will wait until the dispute has been resolved or

you have thrown in the towel.

How Do I Make My Subcontractor Do His Job?

In this case you are equivalent to the owners and the subcontractor

is equivalent to you. In other words, it’s the reverse of the owner-

head contractor relationship, and the same rules (except for the

Consumer Guarantees Act) apply. It is much easier to enforce your

rights against the subcontractor if you have a written subcontract.

If he won’t perform then you can withhold his money. To get it, he

will have to use adjudication under the CCA, and then the truth

will come out. If he has breached his subcontract in a serious way,

you can cancel it and get another tradesman to finish off his work,

at his expense.

Should I Work as a Labour-Only Carpenter From Now On?

The advantage of working labour-only is that you don’t carry the

responsibility for all the other trades and suppliers beneath you.

But then you don’t get to charge a margin on their invoices, and

you lose control of the project. If the owners aren’t experienced

in construction, that is going to lead to a lot of inefficiencies and

frustration. Typically they are going to lean on you to do the

project management for them and coordinate all the trades and

suppliers, so you end up doing the work of the head contractor

anyway, but without getting paid for it.

What Extra Liability Will I Face as a Licensed Builder?

You are just as liable now as you will be once you become licensed.

Licensing will not have any material effect on your liability. There

are two minor exceptions to that. First, as an LBP you can

be disciplined by the Building Practitioners Board, and

many disgruntled building owners will try to use this as a

weapon against you. Secondly, over time the Courts will

begin to impose higher standards of care on you, in line

with your new status. But that will only be gradual.

Should I Take Over Another Builder’s Project?

Yes, by all means. But take sensible precautions. Your

written building contract must state that you will be

responsible for your own work but not that of your

predecessor. You should try to get a Council inspection

of the project before you take over, so you have some

independent record of the state it was in at that point.

Finally, you should take hundreds of photos, so you can

use them in evidence later, should the need arise.

This article is not intended to be relied upon as legal

advice.

A new edition has just been launched of the House Building Guide – the big BRANZ book about timber-framed house building.

The latest edition of the book takes into

account the standards and Building Code

changes over 2011, including the new

NZS 3604:2011 Timber-framed buildings

and the new Acceptable Solutions for

weathertightness, E2/AS1, and durability,

B2/AS1. (Only the new versions of 3604

and the Acceptable Solutions can be used

from 1 February 2012.)

There are now 250 drawings in the book.

They have been coloured for the new

edition, and the vast majority are in the

popular, easy-to-follow 3D style.

The 370-page book gives practical

guidelines for good building practice,

from the foundations to internal lining

and finishing.

The book also explains the key standards

and Building Code clauses that designers

and builders need to follow. It gives

checklists of the working documents that

they need to have access to.

While the book indicates the minimum

requirements to achieve compliance, in

many cases, it includes recommendations

for better options based on BRANZ

research findings and experience.

The book also covers contracts, site

practices such as quality control, site

management, storing and moving

materials, and site safety.

The House Building Guide is a BRANZ

bestseller – 26,000 copies of the previous

edition were sold. It is available now

through the BRANZ bookshop.

Buy your copy today for only $66.95 +

$8.00 p&p.

Order online www.branz.co.nz or call

0800 80 80 85 (press 2).

Updated BRANZ House Building Guide

14

15

By Geoff Hardy, CBANZ Board member

and senior lawyer in the law firm

Madison Hardy

Our law firm is assisting a number of builders who have become defendants in leaky home cases. In most of these cases the claim was filed with the Weathertight Homes Resolution Service nearly 10 years after the building project was completed.

After the claim is filed it is often put on

the back burner while the homeowners

decide what they are going to do next.

For example, they might get the repairs

done, or they might wait until they have

arranged finance. Sometimes this can

take years.

While all of this happens, the parties that

the homeowners intend to claim against

(the “Respondents”) remain blissfully

unaware of what is going on. There is no

requirement to notify them as soon as

the claim is filed, or the WHRS assessor

has completed his inspection or written

his report.

So when the respondents finally receive

notice that they have to defend a claim,

it can be 13 or so years after their work

was completed. This makes a mockery

of the 10 year limitation period in the

Building Act.

Inevitably the Respondents will have

thrown out all their old records by

that time, such as the original building

contract, the plans & specifications, their

invoices to their clients, the invoices

they received from their suppliers and

subcontractors, their GST returns, diaries,

time sheets, notes of site meetings,

variation records, and correspondence

files. This makes it all the harder for

them to prove whether they were

the head contractor or a labour-only

carpenter, who was responsible for the

leaks, and what instructions they were

given.

Because of this risk, I strongly urge all

tradesmen to retain all the paperwork

relating to any project they ever worked

on, basically forever. You cannot assume

that they will become irrelevant after 7,

10 or even 13 years.

Don’t throw those old records out!

All Platinum (business) members will receive one FREE copy of the CBANZ® Diary. You are able to purchase further copies

for your staff etc. This year Gold Card holders will also be able to purchase a CBANZ® Diary.

EXTRA DIARIES WILL COST

2012 Diaries

Certified BuildersAssociation of NZ Inc

Please email Millie T to place your order [email protected] or order online in the merchandise section

$15 inc GST and freight

Contract Works

Public Liability

Errors & Omissions (E&O)

Statutory & Employers Liability

Tools

Vehicle

House and Contents

Boat

Life

Income

Medical

If you would like to discuss

any of these covers or get

quotes, please phone us on

0800 237 843 or

you can get a

Contract Works

quote on the web –

www.certified.co.nz

GUARANTEES & INSURANCESLife, Medical and Disability Insurance

We just don’t have the expertise needed for these specialised covers, which often

need discussion at home as they are very personal matters, but we are delighted to let

members know of a partnership we now have with TNP Group, who specialise in these

types of cover and who have qualified brokers based throughout New Zealand.

Life Insurance:Life insurance pays out a lump sum to your dependants, or other nominated

beneficiaries, in the event of your death. Whether it is buying a new house, paying off

the mortgage or bank loans, education or retraining, your loved ones will have more

choices to help them get on with life.

Mortgage Repayment Cover:Mortgage repayment cover is designed to make the monthly mortgage repayments in

the event that the insured person becomes totally disabled.

Trauma Cover:Trauma Cover pays a lump sum in the event of a major medical trauma such as heart

attack, stroke or cancer. Trauma cover gives you financial freedom to make choices,

when your health has been seriously affected, and you may have to rethink your future.

Income Protection:Self-employed Income Cover provides a monthly benefit if you are unable to work

because of a total disability. Ask yourself this - if you had an accident or became very ill

and were no longer able to earn an income, how long would you manage financially?

Income Protection cover takes the uncertainty out of that.

Health Insurance:Nothing is more important than the health of you and your family, and that’s what

makes health insurance such an important part of your life. Unexpected health

problems can impact your family’s life, lifestyle and finances.

Five important reasons to have Health Insurance;

1: You have choice where, and how you get treatment.

2: No added stress about how to pay health bills

3: Avoid long delays in waiting for treatment in public health system

4: Cover for the future

5: Access to many of the latest recognised medical procedures and technology.

ACC:You are all paying ACC Levies, it is a fact of being in business. Most people think that

because they pay their high ACC levies , they will be sorted if they get hurt. Depending

on your business structure this might not be the case. You could be paying far too

much for the amount of cover you have. TNP offers you an assessment and they work

with ACC to ensure that you are getting the best value you can get.

Just give us a call and we will arrange for one of TNP’s experienced brokers to give you

a call to make a time to discuss any of the above.

17

WISHING YOU AND YOUR FAMILIES A MERRY CHRISTMAS

Jim, Keryl, Kylie, Kim, Ben, Dave, Gwenda & Rachael Should you

have any urgent

matters over Christmas,

while the office is closed,

Jim will be available on 0274 505 528

If you would like to discuss any of

these covers or get quotes, please phone

us on 0800 237 843

17

18

On the last weekend of October a number of our builders stepped out of their comfort zone and gave up their time to take part in two new TV advertisements for Certified Builders.

We had a fabulous response from our

local Western Bay of Plenty builders and

we even had members travelling from

Auckland and Hamilton to get their ‘big

break’ and become famous.

The filming took place in various

locations around the Bay of Plenty

Lights ... camera...

Polytechnic, and at one member’s new

build home in Katikati.

After many harrowing hours of “hurry

up” and “wait”, “take your positions”,

adjusting the lighting, and “retake that

shot” our members are more than happy

to continue building houses rather than

become famous silver screen actors! The

new TV advertisements were to be edited

and complete by the end of November, so

keep your eyes on the telly for our long

awaited new campaign ...

19

action!

19

ABOVE: Preparing the set while the actor builders wait for their debut.

LEFT and BELOW: The cameras are rolling and filming is under way.

20

ITaB apprentice Sam Talbot stood in the limelight before an audience of 70 or so students, supporters, sponsors and industry representatives filling “The Establishment” in Wellington on October 13. The occasion was the MNZIOB Central Chapter rewarding its students in the 2011 Student Achievement Awards.

The awards which continue to grow in

popularity and stature within the Central

Chapter region reward the best students

nominated by their tertiary institutes in

Degree, Diploma, Trade and first year

categories before culminating in an

overall Supreme student award.

Although originally based around the

NZIOB certificates, the introduction of

key award sponsors has allowed some

significant prize money to further reward

these high performing students.

The awards ceremony followed, with

award sponsors individually reinforcing

the significance of these awards before

handing out framed certificates to all

finalists, and then the winners.

The RJHA Ltd Award for best Degree

student went to Joseph Sturm from

Victoria University, the Mainzeal

award for best Diploma student to

Samual Taylor from Weltec, the Carters

Wellington Award for best Trade student

to Ben Hanna from BCITO and the

Resene Award for best first year student

to Sam Talbot (ITaB) from EIT Hawke’s

Bay. All the winning students took

the opportunity to thank their tertiary

institutes, teachers, family and friends as

well as the NZIOB and sponsors.

20

ITaB apprentice named best first-year student

The final act of the night was to present

the Redican Allwood Supreme Award,

which was awarded to Samual Taylor

from Weltec whose recommendation

acknowledged not only his own high

standards of achievement throughout his

course but went on to explain how he

had positively influenced the rest of his

class inspiring a “raising of the bar” for

the course.

Congratulations to all the finalists and

winners and thanks to the sponsors for

their generous support in making this

event such an ongoing success.

Mike King

MNZIOB Central Chapter president

Sam has shown great promise in the first year of his carpentry

apprenticeship. His employer Paul Boaler in Havelock North is

extremely pleased with his work ethic and as far as his book

work goes I am frankly amazed, says Shane Sigglekow, EIT

Carpentry Apprenticeship Program Co-Ordinator.

His work is exactly what we need to easily sign off units and

he has used photos well to back up his written evidence. He

shows how dedicated he is to the trade with the high level

of detail he uses. For a first year to be at this standard so

early on is fantastic I wish all of my apprentices were so well

motivated, says Shane.

He is ex-pretrade and it definitely reflects on EIT when the

employer tells his fellow builders that they should take on

a Pretrader from EIT as an apprentice because they show

keenness from the get go. They have paid a lot of money to

do the trade the right way so they definitely know what they

want to do with their lives – they want to be builders.

The overwhelming feedback I have had about Sam is the

reason I nominated him. At the rate he is going I feel he will

breeze through his apprenticeship and he is a pleasure to

have on board.

Sam Talbot – apprentice profile

My selection criteria for the first year apprentice award

was based on site visit observations and record of work

progress. Sam Talbot has completed a pre-trade course so

there were no theory tests for him this year as all theory

is covered in the level 3 pre-trade.

A typical 1st year apprentice will take the better part

of the first year coming to grips with how to fill out the

record of work book and through trial and error over

the 6 eight weekly visits a year will be guided to a good

standard. In the first year I would expect 2-3 practical

units handed in as they are still learning. In Sam’s case he

took it all on board from the first visit. The second visit

was very impressive, his record of work was detailed and

set out as well, if not better, than a 4th year apprentice.

What really grabs you is his willingness to learn and this

is reflected in his very professional record keeping. We

have to remember that he is only 21 and this is maybe

what surprises me most, a lot of apprentices his age are

distracted by their social lives. This combined with his

employer’s comments convinced me that he is my best

1st year apprentice. – Shane Sigglekow, EIT Carpentry

Apprenticeship Program Co-Ordinator

Award selection criteria

21

Nathan Byers completed his 8000hrs,

on 4th November 2011. He has been

a great apprentice and early on

showed his willingness to learn by

completing his theory and practical

book work ahead of time.

Unfortunately for him he had a

period of not having an employer so

his 8000hrs had to be suspended for

up to 6 months until he was signed

back into an apprenticeship.

However, even while the 8000hrs

is on hold our apprentices are still

enrolled students so I can still have

them in night classes and assess their

book work as they are enrolled and

paid up for each year. This is a great

feature of our apprenticeship system

if the employer runs out of work

we can keep up progress on written

work etc until either that builder is

busy again or, as with Nathan, he

finds other employment.

This was the case for Nathan which

is why he was able to wrap up all of

his book work well in advance of his

8000hrs being completed.

ITaB apprentice Nathan Byer’s path to achieving 8000 hours

Nathan has shown great time manage-

ment with being able to travel to the

block courses 4 weeks a year as well as

juggling the demands of a very young

family.

Nathan started with the block courses

for his first 2 years then coped well

with our transition to night classes

where he finished off the theory part

of his apprenticeship last year. His

employers have said that “he has got

his head screwed on right and has the

potential to be a great builder”.

Nathan was a great student and I am

happy to see him qualified. He is keen

to get his Gold Card application to

Certified Builders and will be there

for the monthly Certified Builders

meetings in the future.

– Shane Sigglekow, EIT Carpentry

Apprenticeship Program Co-Ordinator

Nathan Byers receives his Carpentry Certificate and 8000 hours completion certificate from Shane Sigglekow, Carpentry Apprenticeship Program Co-Ordinator School of Trades and Technology Eastern Institute of Technology

Hi Guys

Well it’s been a full on couple of

months since we last talked. On the

Apprentice front I have two more

builder events coming up, one at

Unitec in Auckland and the other in

Rotorua at the Waiariki IOT. I will

update you on those in the New

Year.

As you see with the article our ITaB

apprentices keep on taking out the

awards. This just goes to show the

quality of training. Our Providers

are delivering on their word to

deliver top flight young guns to our

industry.

On a personal note, I want

to wish you all a safe and

Happy Christmas.

See you on the road

Dion Tapper

National ITaB Coordinator

From your co-ordinator

21

23

Licensed? Show it!

Certified Builders can now supply you with a suite of LBP stickers for:

invoicesvehicles

business cards

letterheads

windowsenvelopes

Stickers are available in the black/white version or the green/white version of the LBP logo.

LBP Stickers Green/white version Black/white version

Window stickers (150mm round) $3.50 each $3.50 each

Stamp size stickers for use on

business cards, invoices, letterheads,

envelopes etc (25mm round)

$7.50 per sheet (40 per sheet) $7.50 per sheet (40 per sheet)

Please note: LBP stickers will be supplied only to those of you who are cur-

rent Licensed Building Practitioners and this will be strictly regulated.

Special thanks to Tauranga member Blair Arrowsmith for the inspiration and

ideas for the LBP stickers.

Your nearest workshop

– CBANZ CEO Derek Baxter24

With the “definitions” within licensing becoming clearer, it is evident well informed builders will be at the forefront of the build process taking on board more project management. This is the model I can see working successfully under the LBP scheme. With this comes opportunity to charge for additional services, have a more productive work site and lead a community of Craftsmen that will get it right first time mitigating your risk.

To understand the effects on builders

and your team let’s take a look at what is

and what is not Restricted Building Work

[RBW].

RWB applies only to work done or

supervised on

•Single household dwellings

ofully detached

oor a single residential unit and

one or more residential facilities

e.g. a corridor, foyer, garage,

laundry, lift, sauna, or storage

unit

•Small to medium apartment building

oContains two or more residential

units or residential facilities

oDoes not contain parts that are

neither residential units nor

residential facilities

oMaximum height of 10m [to

highest point of roof]

Restricted Building Works is:

The Primary Structure - The principal

structural system of the building. It

includes all structural elements of the

building intended to contribute to

resisting vertical and horizontal loads.

This includes but is not limited to ...

Foundation, floors and subfloor:

• Slab on ground-steel and concrete

• Piles [including bracing]

• Foundation walls

• Strips

• Rafts

• Pads

• Bearers

• Joins and stringers

• Floor trusses and diaphragms

• Pre stress floor installation

Walls:

• Studs and jack framing

• Lintels

• Panels of interior linings [bracing

and diaphragm]

• Solid construction

• Piers

Roof:

• Rafters

• Purlins

• Trusses

• Diaphragm systems

Columns and beams:

• Columns

• Posts

• Pillars

• Beans

• Structural supporting systems

Bracing:

• Cross bracing

• Sheet bracing

• Shear walls

• Diaphragms

External Moisture-Management

Systems:

External moisture management systems

are the building elements and systems

that prevent the ingress of external

moisture and help control moisture

within the building fabric ...

Preparing your Community of Craftsmen

By Jason McClintock

Operations Manager

From the desk at Operations

24

25

Preparing your Community of CraftsmenThis includes but is not limited to...

Damp proofing:

• Floors

• Walls and floors in direct contact

with ground

• Sub floors/suspended floors and

solid walls exposed to airborne

moisture-including damp proof

protection.

Waterproofing: [tanking and water-

proof coatings]

• Floors, walls and roofs in direct

contact with the ground or floor

• Solid walls exposed to airborne

moisture

• Roofs exposed to airborne moisture

including Water-proofing protection

Cladding system:

• Build wrap

• Drained cavities

• Cladding

• Fixings

• Windows, doors and skylights

• Ventilators

• Openings and penetrations

• Flashings and seals

• Joints and Junctions

• Surface treatment [e.g.

waterproofing coatings]

Fire safety systems:

• Design only of building elements

intended to protect people and

property from the effects of fire

Let’s now take a look at what is not

Restricted Building Work: This includes

but is not limited to ...

Commercial buildings

• Shops

• Offices

• Motels

Building work that does not require a

building consent

• Schedule one

Apartments greater than 10 metres

• Lowest ground point to highest

roof point, excluding chimneys,

aerials etc

Residential Buildings with

commercial parts

• Apartments with shops underneath

• The residential section maybe

subject to RBW [depending on

number of units]

Out Buildings

• Detached garages etc

Elements constructed off site

• Prefab trusses

• Pre stress

• Steel frame etc

Work not covered by a licence

• Straw bale etc

Internal Carpentry work/linings

• These must not be contained with

the discretion of RBW i.e. primary

structure

There is a whole raft of sub trades

involved with RBW, many of whom will

not qualify for a carpentry licence to

be able to sign off their own work e.g.

plaster board installer and garage door

installer. Before these trades even step on

site it should be established who will be

signing off RBW.

The main contractor [LBP] is well placed

to take control, however this should not

be a free service, there is omissions and

errors insurance to pay for, a project

management fee to cover and if this

LBP has to come across town to sign off

the garage door install for instance the

associated costs will need to be covered.

I can see a picture emerging of a

successful site. Propelling the well

informed builder back to the front end

of the project, ideally having input at

procurement stage, selecting sub trades

with a “get it right first time” attitude.

Talk with your team of sub trades about

getting licensed, if you operate from

Gisborne you currently have no Brick and

Block as well as external plasters licensed.

The same for the West Coast and Nelson

- to date nobody is capable of signing

off external plasters. Remember if you

do not hold a licence for a particular

class you cannot sign it off e.g. carpentry

cannot sign brick and block or external

plaster work.

CBANZ will template up a site book

guiding members through the

requirements of licensing. Stepping you

through RBW, memorandums, the clients

obligations, dealing with councils and

inspections and if you are required to

sign off other trades’ work and how to

mitigate your risk.

It has been a pleasure assisting members

through licensing this year and to see

many aspire to the site two, although

economic conditions have made it

somewhat difficult for some to capture

their abilities in the past five years.

Wishing you a pleasant holiday

season, for those that have not applied

for licensing take your application with

you to fill out or you may find yourself

with restricted abilities to work come

March 2012.

25

2626

It’s your call!...

helplines5 FREE

EmploymentAdvice on any employment-related issue

is available from specialist Tauranga law

firm, Employment & Environment Law.

Danny Jacobson and Trudy Paterson will

assess the employment issue and give

general guidance on the best options in

phone sessions of approx 5-10 minutes. It

is not intended as a substitute for formal

employment/legal advice. You must

identify yourself as a CBANZ member

and any information you disclose will be

treated with confidence.

Ph 07 928 0529 or 021 857 529


Danny Jacobson

Trudy Paterson

For help with contracts issues contact

Peter Degerholm at Calderglen

Associates. Phone sessions are limited

to 20 minutes and written questions

must be kept brief though they

may include relevant extracts from

documents.

Peter Degerholm Ph 04 587 0061

or 021 307 232 Fax 04 587 0062


Peter Degerholm

Contracts

General business, accounting or tax

Steve Brocklebank

For general business, accounting or tax

issues you can contact Steve Brocklebank

of PricewaterhouseCoopers. Phone

sessions are limited to 10 minutes at

first, and emails should be kept to the

point. You must identify yourself as a CBANZ member

and any information you disclose will be treated with

confidence.

Steve Brocklebank Ph 03 470 3615 or 027 433 6025


Business-related legal issuesFor advice on business-related legal issues,

Auckland commercial law firm Madison

Hardy is offering a free service to CBANZ

members. It will only cost you the price

of the phone call. Free advice sessions are

limited to 20 minutes.

Experienced lawyer, and CBANZ director

Geoff Hardy and junior lawyer Gagan

Tangri will answer your queries, during

business hours.

Geoff Hardy Ph 09 379 0700

Gagan Tangri Ph 09 970 9567

Geoff Hardy

Gagan Tangri

web www.e2law.co.nz

Insurance

Jim Rickard

For advice on any insurance-related issue

contact Jim Rickard at CBA Insurances. If

you have your own broker they should be

your first point of contact. However, Jim

is happy to help with any claims problems

and with any general question about what

cover you should have as a builder.

Ph. 07 579 6259 or 0274 505 528

Email [email protected]

26

27

The second step in the journey to reform the building and construction sector takes effect on 1st March 2012 when Restricted Building Work (RBW) comes into force.

RBW follows on from the introduction

of the Licensed Building Practitioners*

(LBPs) scheme in 2007, and relates to any

building work which affects the primary

structure or weathertightness of a home

or small-to-medium apartment building.

RBW can only be carried out by those

registered under the Government-

administered LBP scheme and includes:

foundations and sub-floor framing,

floors, walls, roof, columns and beams,

bracing, damp-proofing, roof and wall

cladding, water proofing, as well as the

design of fire safety systems. It doesn’t

apply to outbuildings buildings such as

stand-alone garages or garden sheds, or

to commercial property, or to any work

that does not require a building consent.

In order to get building consent for

Restricted Building Work, the design will

need to be carried out or supervised by a

Design LBP (including a Registered Architect

or a Chartered Professional Engineer).

The designer then needs to provide the

owner with a Memorandum (Certificate

of Design Work) that states who did the

design, identifies the RBW, and certifies

that the design complies with the

Building Code.

The homeowner must provide this to

the local council as part of their building

consent application. The construction

of RBW cannot get under way until the

owner has notified the local council of

the LBPs who will be carrying out or

supervising the work.

Furthermore, once each LBP has

completed their part of the RBW, they

must give the owner and the local council

a Memorandum (Record of Building

Work) stating that they carried out or

supervised that part of the construction.

Given this requirement, it is

good practice for LBPs to take

photographic evidence to record

their start and stop points and to

keep a copy of the Memorandum for

their own records.

The homeowner must provide the

Memorandum to the local council as part

of their Code Compliance Certificate

application.

Penalties will apply and unlicensed

tradespeople caught doing RBW risk

being fined up to $20,000. Likewise

homeowners can also be fined if they are

found to have knowingly employed an

unlicensed person to carry out RBW.

The Department of Building and Housing

is currently developing guidance material

for each licence class - once published,

copies will be available on its website

www.dbh.govt.nz.

* The Licensed Building Practitioner

scheme, administered by the Department

of Building and Housing, covers

designers, carpenters, brick and block

layers, foundation specialists, plasterers

and roofers. The scheme also covers site

managers, but they cannot do RBW.

Some members of other professions

are automatically treated as if they

are LBPs (Registered Architects,

Chartered Professional Engineers,

Registered Plumbers and Gasfitters).

LBPs are practitioners who have been

independently assessed as competent in

particular areas of work.

They are also required to carry out a

range of skills maintenance activities to

ensure their skills remain current and

are required to re-apply each year to

continue being licensed.

Building Amendment Bill (No 4)

focuses on consumer protection

measures and includes:

• mandatory written contracts for

building work over $20,000

• that builders must disclose

information, for example details

about their skills, qualifications,

licensing status, track record,

insurance, and dispute history

• new general remedies

• that builders must fix any defects in

their work within 12 months

Further information on what these

changes will mean for the building and

construction sector will be available

once the Bills are passed.

There are also two Bills before

Parliament which are likely to be

passed in 2012 and progressively

implemented over the next few

years. Both Bills address issues

identified in the Building Act Review

carried out in 2009/10.

Building Amendment Bill (No 3) has a

regulatory focus and includes:

• enhanced accountability

• an owner-builder exemption for

restricted building work

• enhancement and clarification of

the building warrant of fitness

regime

• other minor and technical

amendments

Watch this space

Restricted Building Work coming into force

Certified Builders will template

requirements for licensed

practitioners into a site record

booklet for members. This will

include writing the memorandum

and prompts on the information

required “writing and archiving

Restricted Building work will be vital”.

– Jason McClintock, Operations Manager

Fast facts

CBANZ Conference Accommodation Options:

As a business person, you can expect an audit of your tax returns at some stage. The secret is to be prepared! If you follow Inland Revenue’s 10-point checklist, your audit should go more smoothly:

1. Register for all the taxes that apply

to you (For example, income tax, GST,

PAYE, FBT).

2. Make sure you’re up-to-date with

filing your returns and paying your

taxes.

3. Confirm that you’re paying tax on

all your income, including income

received in cash.

4. If you’ve paid expenses “out of the

till” or out of cash takings, don’t

forget to add the expenses back

when you’re calculating your income

for the day.

Are you prepared for an audit?

5. Test that there’s a clear trail from the

figures in your tax returns to your

invoices, receipts, and bank records,

so you can readily prove your figures

are accurate.

6. Check that you’re claiming only

business-related expenses.

7. Make sure you’re accounting for

private use of business assets and

expenses (Are you making private

use adjustments or paying FBT?).

8. Confirm your logbook is up-to-

date if you’re making private use

adjustments for a motor vehicle.

9. Tell us if you’ve filed an incorrect

return before we find out about

it—a “voluntary disclosure” will

probably save you money.

10.If you’re unsure about anything,

contact Inland Revenue or talk to

your tax agent.

Out there doing it...

Builders’

Brag Page Win H&F NZ clothing

Please note photos submitted must be from a CBANZ or ITaB

member or a company affiliated with Certified Builders.

Send us your hunting and fishing photos ...

and we’ll reward those that get published on this page with a

Hunting & Fishing New Zealand fleece Bushshirt.

Send photos to:

Builders Brag Page

PO Box 4472

Palmerston North

or email in hi-res to [email protected] (be sure and

identify clearly that you are sending an entry for the Certified

Builders Brag Page as well as your full contact details!)

For Hunting & Fishing New Zealand store locations

check out www.huntingandfishing.co.nz

phone 0800 486 834 (0800 hunt fish)

31

We want

your

pics!

Todd Yukich, Auckland ITaB apprentice, with

his best fallow stag shot a few weeks ago

on a trip down in Wanganui.

Mike Knight from Custom Carpentry in Auckland with three goats caught recently.

Danny Rowe, from Christchurch, during an awesome trip to Milford Sound

where they collected their full quota of crays this size!

32

It is noted in the Act that an employer does not comply with

subsection (2)(b) simply by paying an employee an allowance

or extra salary or wages instead of providing the protective

clothing or equipment OR requiring an employee to provide his

or her own protective clothing or equipment as a pre-condition

of employment or as a term or condition in an employment

agreement.

However should an employee choose to provide his/her own

protective clothing for reasons of his/her comfort or convenience

and the employer is satisfied that the protective clothing is

suitable in terms of (2)(b), it is important to note, nothing

detracts from the responsibility of the employer.

The steps that may be taken to reduce the risk posed by solar

radiation include working under cover when the sun is most

intense [greatest risk occurs during the summer daylight saving

months between 11am and 4pm], the use of shade and providing

suitable personal protection.

Consider minimising exposure by:-

• Eye protection [sunglasses should meet AS1067:1990

and allow less than 5% UV-A transmission];

• Lip protection [lips should be protected with sunscreen

or a lip/chapstick with a SPF rating of 15+];

• Sunscreen [Sun protection factor (SPF) of 15+ is

recommended – apply 15 minutes before going out

in the sun and reapply according to manufacturer’s

instructions]

• Personal protection [Hats / Clothing]

• Job organisation [if possible, reschedule tasks when

the sun is most intense]

An example of a workplace sun protection policy is available on

the MEMBERS section of the website www.certified.co.nz.

HSE states Best PracticePart 2 s 10 : Significant hazards to employees to be minimised, and employees to be protected, where elimination and isolation impracticable

• Introduce a workplace sun protection policy

Part 2 s 10(2)(b) : to provide, make accessible to, and

ensure the use by the employees of suitable clothing

and equipment to protect them from any harm that

may be caused by or may arise out of the hazard

• Provide sunscreen (SPF 30+) AS/NZS 2604:1998

conforming protection;

• Provide UV clothing [hat and long-sleeved polo shirt]

Be sun sensible

Summer is here and what better time, to review your

workplace policy for sun protection.

Prolonged exposure to sunlight is a well-established cause of skin

cancer, including melanoma. It is the UV radiation component of

sunlight which is harmful. Even on cloudy days, the UV level may

be sufficient to be harmful. Long term effects on the eye include

damage to the cornea and formation of cataracts.

The Health & Safety in Employment Act 1992 [HSE] requires

employers to identify hazards faced by their employees and, if

it is found that a hazard is significant, apply the hierarchy of

actions – elimination, isolation and minimisation – to ensure

that a significant hazard does not result in harm to employees.

Where the hazard cannot be eliminated or isolated then, as well

as minimising the hazard, the employer is required to provide

protective equipment, monitor exposure and, with consent, help

in relation to exposure.

Public Holiday

Not an otherwise working day

Is otherwise a working day

Christmas Day (Sunday 25th Dec 2011)

Christmas Day

is transferred

to Tuesday 27th

January

Christmas Day

is observed on

the day it falls

Boxing Day (Monday 26th Dec 2011)

Not entitled

to the public

holiday

Boxing Day is

observed on

the day it falls

New Years Day (Sunday 1st Jan 2012)

New Years Day

is transferred

to Tuesday 3rd

January

New Years Day

is observed on

the day it falls

New Year Holiday (Monday 2nd Jan 2012)

Not entitled

to the public

holiday

New Year

Holiday is

observed on

the day it falls.

Public holidays are celebrated on the day they fall

unless the employer and employee agree in writing

to transfer the observance of the public holiday

to another working day, or where Christmas Day,

Boxing Day, New Years Day and 2nd of January fall on

a Saturday or Sunday.

If these public holidays fall on either a Saturday or

Sunday employees who normally work on these days

celebrate the public holiday then –

for employees who don’t normally

work Saturday or Sunday the

public holiday is transferred to the

Monday or Tuesday respectively.

To help you decide whether an employee is

entitled to take the public holiday you will need to

determine if the public holiday falls on an otherwise

working day. The Department of Labour has an

Online Holiday tool that can help you; visit www.

dol.govt.nz/holidaytool. Once you have worked

out if the day is an otherwise working day you can

use chart below to determine which day the public

holiday will be taken.

For more information about public holidays and

what to pay for a public holiday go to www.dol.

govt.nz/er/holidaysandleave/publicholidays

Summer Leave

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Wide Brim Sun Hat: UPF50+

Cover your arms in the harsh sun

33

34

By Lois Easton, Beacon Pathway

There’s a growing debate in New Zealand

about the affordability of our housing.

The Productivity Commission is currently

looking into the issue in recognition

of the impact housing affordability

has on ordinary New Zealanders, the

wider economy, and the size and health

of our housing industry. We believe

that affordability is about more than

the upfront cost of buying a home, it’s

also about your home’s performance:

how much it costs you to run your

home, and the indirect health, social

and employment costs of cold, damp,

unhealthy homes.

The New Zealand Housing Foundation’s

HomeSmart Home is a great example

of affordability over time. The Housing

Foundation is a not-for-profit, charitable

trust set up to provide affordable housing

for low income households. Built in

2009, the HomeSmart Home amended

a standard Housing Foundation design

using Beacon’s HomeSmart Home

guidelines. These guidelines have been

developed out of our experience in

building and monitoring the performance

of two new homes, and they aim to

ensure a home meets our performance

benchmarks, the HSS High Standard

of Sustainability®. The HomeSmart

Home’s energy and water efficiency,

indoor temperatures and humidity were

monitored for a year with a family of 2

adults, 2 children and 2 teenagers living

there.

The results were exciting. Simple but

effective were improvements to the

home’s passive solar design and thermal

envelope. The house was oriented to

the north with the garage on the south

side and the majority of windows along

the northern face. An overhang shaded

living area windows with eaves over

the upper storey windows. High levels

of insulation (R4.6 ceiling insulation

and R2.6 external wall insulation) were

combined with U-PVC framed double

glazing. The family found the house to

be very warm in winter and only used

the heater when they first moved in

with a newborn baby. Warm winter

temperatures in living and bedrooms

improved the family’s health. The family

reported that no-one had been sick since

arriving in the house and they had not

needed asthma inhalers.

Energy use in the HomeSmart Home was

NZ Housing Foundation’s affordable high performance house

34

startlingly low coming in at 3980 kWh

per year. Compare this to a recently

monitored group builder house in

Christchurch where year-round heat

pump use resulted in 14,400 kWh per

year energy use, and you can see what

a saving this is. In part, the great

performance was due to the photovoltaic

panels which generated a third of

electricity used, but even without this,

the home’s design and features made it

a very efficient electricity user – after all,

not many affordable homes would invest

in this level of kit. A combination of

energy efficient appliances, lighting and

hot water combined with good passive

heating and thermal design significantly

reduced the family’s power bills. The

family praised their efficient heat pump

hot water system for its contribution to

their lower power bills and the warmer

home meant minimal heating costs.

The house also included a Centameter

which enabled the family to keep an

eye on their energy use. Other studies

have indicated that energy monitors can

reduce energy use by about 10%.

The New Zealand Housing

Foundation’s HomeSmart Home

• Glen Eden, Waitakere, Auckland

• 160m2 including double garage

• 4 bedrooms, 1 bathroom, 2 toilets

• HERS (Home Energy Rating

System) thermal rating of 8.0

stars

• PV solar power system

• Heat pump hot water system

• Greywater system

• Rainwater tank

• uPVC-framed double glazing

• Low energy lighting

Living areas and photovoltaic panels made the most of the sun on the north face of the HomeSmart Home.

35

NZ Housing Foundation’s affordable high performance house

About Beacon Pathway

Beacon Pathway is committed

to the transformation of

New Zealand’s homes and

neighbourhoods, working to

make them higher performing,

more adaptable, resilient

and affordable through

demonstration projects, robust

research and a collaborative

approach to creating change.

Members of Beacon Pathway

Incorporated include EECA,

Christchurch City Council,

Certified Builders, New Zealand

Steel, Insulpro, Resene, and

Fletcher Aluminium.

For further information about

Beacon Pathway visit www.

beaconpathway.co.nz.

35

Performance against Beacon’s HSS High Standard of Sustainability®

Criteria Benchmark NZHF HomeSmart HomeEnergy Use 5800 kWh/year 3890 kWh/year

Water Use 125 litres/person/day 117 litres/person/day

Living Room Mean Temperature >18°C - 5-11pm in winter* 19.0°C

Bedroom Mean Temperature >16°C - 11pm-7am in winter* 18.0°C

Living Room Mean Relative Humidity 40-70% - 5-11pm in winter* 62%

Bedroom Mean Relative Humidity 40-70% - 11pm-7am in winter* 62%

* Winter = May to September

Heat pump hot water unit and greywater system in the utility area at the back.

Water-wise, the HomeSmart Home also

performed well. Water is metered and

paid for separately in Auckland, so using

less water had a direct financial benefit

for the family. Water efficient appliances

and fittings, a rainwater tank for the

garden, and a greywater system, which

reused 30% of waste water from bath,

shower and laundry, reduced the family’s

water use to 117 litres per person per day.

This is considerably less than the average

in the Waitakere area of 165 litres per

person per day. Given the low cost for

water efficient fittings and the ease of

incorporating them into homes, they

should be a top priority for affordability.

Of course, nothing’s perfect and even the

HomeSmart Home could be improved.

The upstairs rooms tended to overheat in

summer - deeper eaves on both upstairs

and downstairs windows, and high

windows which can be left wide open

for natural ventilation, would address

this. While the greywater system was a

good performer, a larger rainwater tank

plumbed to outside, toilet and laundry

would use Auckland’s excess rainfall

more efficiently. And while it’s true the

upfront cost of a photovoltaic system may

not yet justify its use in affordable homes,

this may change as the price of power

goes up, and the cost of photovoltaic

panels comes down.

Overall, the HomeSmart Home delivered

excellent performance and affordability

for the family living in it, and will

continue to do so over its lifetime. By

and large this has been achieved by

relatively simple and cost effective

features, which should be considered as

standard in all affordable new homes

• Good passive solar design

• Heat pump hot water system

• Water efficient fittings

• High specification insulation in

ceiling and walls

• Double glazing in bedrooms

• In Auckland, rainwater systems

plumbed to toilet, laundry and

outdoors

36

Danny Jacobson & Trudy Paterson

e2Law — Employment &

Environment Law

The following questions have arisen in

cases in which e2Law has recently been

involved:

CONTRACTOR vs EMPLOYEE

Q: Last year, I took on a new guy as a

contract labourer. We don’t have a

written agreement but I told him he

would have to pay his own tax etc.

He has been working for me on a

full time basis. There have been

issues with the quality of his work

and he is often late for work or

doesn’t turn up at all. I have given

him a first warning and a written

warning about these matters. Now,

I have two clients who have advised

that they will not have him on their

sites due to issues with the quality

of his work and his behaviour.

As he is a contractor, I can just

terminate his contract can’t I.

A: We have written about this issue in

previous columns but we are still

regularly dealing with it through

the Employment Helpline.

The legal test for whether someone

is an independent contractor or

an employee is determined by

examination of “the real nature

of the relationship” between the

two parties. What the parties have

agreed or called the relationship,

including in any written agreement,

is not to be treated as a determining

matter although this will still be a

relevant consideration. The focus

is more on how the relationship

operates in practice. Your labourer

may well be able to argue that the

real nature of your relationship is

that of employer/employee. For

example, he would argue that there

is no written agreement recording

the contracting relationship, he

has worked exclusively for you

effectively on a full time basis

and that you treated him like an

employee by giving him warnings.

Based on the information you have

provided, there is definitely a risk

that this labourer could be held

to be an employee. If this is the

case, the Employment Relations Act

would apply. You would then be

liable for paying PAYE and to claims

for unpaid annual leave, public

holidays, sick leave, bereavement

leave, as well as open to personal

grievance claims if you terminate

the relationship without following

proper employment processes.

We recommend you seek advice

if you are in this situation as in a

practical sense, you may be able

to follow a fair process before

terminating to try and minimise the

risk of a claim.

For the future, we also strongly

recommend that you have a written

agreement in place with any

contractor and that you operate the

working relationship as an ‘arms

length’ relationship of principal and

contractor, rather than akin to an

employment relationship or a hybrid

type relationship.

TERMINATING WORKPLACE ACCOMMODATION

Q: Our building business has one

staff member who lives on site in

an upstairs flat above our office/

showroom. This accommodation

was offered to this employee as

part of his “package” when he

started work. He has recently

resigned from his employment

with us, but seems to think he has

the right to continue to stay in the

flat even after his employment

ends. Is this correct? We want

him out as soon as possible so that

his replacement can be offered a

similar arrangement.

A: The Residential Tenancies Act 1986

deals with the termination of this

type of tenancy arrangement which

is called a “service tenancy”. Once

employment ends, you can give him

14 days notice of termination of the

accommodation arrangement. In

certain circumstances, you can give

less than 14 days notice should–

• you believe on reasonable

grounds that he will cause

substantial damage to the

premises if permitted to

remain for 14 days; or

Q&A – the law at work

36

• it be necessary for the

conduct of your business

that a replacement

employee be appointed

and no suitable alternative

accommodation is available

for the replacement worker

within the 14 day period.

SETTLEMENT OF WAGE AND HOLIDAY PAY ISSUESQ: I am trying to negotiate a settlement

with an aggrieved apprentice who

has raised a number of claims

including for unpaid holiday pay

and unfair treatment. As a result of

without prejudice discussions with

the employee’s representative, we

have now reached agreement about

an “exit package” which we wish

to have signed off by a Department

of Labour mediator. I phoned the

Department of Labour about this

and was told that the proposed

settlement would not be able to be

signed off because the employee

is effectively compromising her

holiday pay entitlements in the

interests of the overall settlement

package. Surely we can come to

whatever arrangement we want to

and the Department of Labour just

has to sign it?

A: As a result of amendments to the

Employment Relations Act 2000

which came into effect on 1 April

2011, it is now unlawful for a

Department of Labour mediator

to sign any agreed terms of

settlement in which a party agrees

to forgo all, or part, of that party’s

minimum entitlements. The term

“minimum entitlements” is defined

as meaning wages or holiday pay

or other money payable by the

employer to the employee under

the Minimum Wage Act 1983 or

the Holidays Act 2003. The object

of this change was to ensure that

minimum entitlements cannot be

negotiated away at mediation. If

your employee is forgoing all or

part of her holiday pay, then you

would not be able to have your

settlement agreement certified

by a Department of Labour

mediator as per the usual process

when settlement agreements are

negotiated. We recommend you

seek specific advice as we find it is

often simply a matter of adjusting

the wording of the proposed

settlement agreement to satisfy the

new legal requirements.

Trudy Paterson and Danny Jacobson are Partners at Employment & Environment Law, Barristers and Solicitors, Tauranga. They operate our Employment Helpline for CBANZ members: ph 07 928 0529. They have also previously produced a Guide for Employers in the Construction Industry which CBANZ can send out to members on request.

(The above is by its nature general, and is not intended to be a substitute for legal advice).

37

Carl Davies, General Manager of industry body National Association of Steel Framed Housing (NASH) says that the resulting rise in the number of Steel Frames Homes we see around the country is great news as consumers, builders, developers and Government agencies recognize the benefits of building in light steel house framing. It is encouraging to see that our market share has grown significantly over the last couple of year says Davies.

Most of the steel used in house construction is made in

Glenbrook , Auckland by NZ Steel, so its local and its origin is

therefore easily traceable. Steel for housing produced by NZ

Steel also carries the Asthma Foundation Sensitive Choice tick

which is a great from a health point of view.

Davies says that NZ Steel also backs their product by offering

a 50 year durability statement for their steel providing

reassurance for consumers and builders.

So let’s talk through some concerns that consumers have

about housing these days:

Will the framing for a house rot? - No, nor does it rust if

installed properly.

Q. How does a steel framed house perform in an earthquake?

A. Steel framed houses performed very well in the recent

events in Christchurch and laboratory tests have been

conducted by NZ and international experts that prove that

steel for framing performs well in seismic events.

Steel Steel Q. How will a steel framed house cope in a fire?

A. Steel performs well in fire situations and because of its non

combustable nature can actually prevent the spread of fire

within the dwelling. This is a significant advantage.

Q. I steel framing comparable in price with timber?

A. Absolutely. Also greater spans are possible with steel

meaning larger open spaces are achievable. Another

great advantage for the consumer and builder is that the

construction of the frame is not weather dependent which

means project scheduling and interim payments can be made

on time and as planned. This helps cashflow.

Q. How fast can it be constructed?

A. Steel framing has a high strength to weight ratio which

means lighter structural members when compared to other

materials. This has the advantage of speeding up construction.

Q. Is steel for housing easily available?

A. Yes, just contact a NASH member and they will assist you.

Q. Do I have to have a special building consent?

A. No, just proceed as you would normally. Most if not all

Councils are familiar with the requirements for Steel for house

framing so building consents should not be more arduous.

BRANZ are currently doing a road show around the country

talking about changes to the regulatory regime. They include

details about the new Industry Standard for Light Steel

Framing.

Light steel framing for residential construction is taking off in

NZ as it has overseas. Steel framing for residential dwellings

makes sense says Davies. Let’s give consumers a choice.

39

Steel framed

housing – a great alternative

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SPOTTED

Look what was spotted in the hand of someone on a Wellington railway platform recently.The CBANZ bags were being handed out to people who came through the doors of the Wellington Home and Garden Show. What a great way to promote the Association - well done Wellington.

Just when you thought you had the right power tool for every job ...

... maybe a Christmas present for the worker who has a full toolkit?

40

Wellington Certified Builders have been working on raising their profile by creating a stand for the 2011 Wellington Home & Garden show which was held at Westpac Stadium on 18-20th of November.

Over the three days 15,000 people came

through the doors. Everybody who visited

the stand was invited to enter the prize

draw to win a Certified Builder for 1

day’s free labour and $500 of materials

thanks to the generosity of Paul Boden

from PlaceMakers Kaiwharawhara. There

were 895 entries submitted, of which 213

wanted to be contacted. The winner was

Melanie Redshaw.

Also to help promote the Association

there were 5000 re useable bags with

the CBANZ logo printed on them which

were given to people as they entered

the show. Walking around the stadium

there was no doubt Certified Builders

Association were out there and that all

the exhibitors and the public wanted one

of these bags.

The 14 members who manned the

stand where pleased with the response

from the public and felt that it was a

worthwhile exercise to educate them on

who CBANZ is and what we stand for.

The calm before the onslaught – Nick Jones (left) and Andrew Grimes just before the show opened.

Putting CBANZ on the Wellington map

41

Just a reminder that we still have a relationship with Fisher & Paykel – bringing our members some very

competitive discounts on the full range of Fisher & Paykel and Elba by Fisher & Paykel and now Haier appliances.

For more information contact Millie at National Support Office ph 07 927 7720

or [email protected]

Don’t forget our CBANZ Fisher & Paykel partnership

42

Western Bay of Plenty Certified Builders

recently hosted two DBH workshops

on the definition of Restricted Building

Work. Melanie McIver Project Manager

for LBP took members through

supervision, submitting memoranda,

consenting requirements, what is and

what is not Restricted Building Work. The

second workshop was open to industry

representatives.

Provocative discussions on “real life”

implications were raised at both meetings

with Melanie guiding us through

the legislation and policy behind LBP

requirements.

The system refers to working within your

area of competency, this is often difficult

to ascertain especially when taking on a

new aspect of work that is within your

area of practice. Melanie suggested

another way to look at it; “practitioners

should be asking themselves, are they

working within their abilities?”. Let’s

take a look how this works, by gaining

a carpentry licence it would be assumed

you are competent for example in

installing windows or supervising the

installation of long run roofing iron.

These areas of practice are within the

scope of the carpentry licence, however

if you do not have the ability to execute

this work then you should not be

(a) having a crack at it or (b) signing off

the supervision of this work.

CBANZ will be working with the DBH to

assist with training of builders and sub

trades on the roll out of the licensing

scheme, through Trade Training evenings

and the communications streams

currently in place.

WBOP President Jason McClintock

Around the table at one of the DBH workshops.

Worskhops shed light on Restricted Building Work

For the first time, students on the National Certificate in Carpentry (Level 4) at Kaitaia’s NorthTec Learning Centre are working on their own community house building project.

Tutors, Steve Rameka and Murray Smith

say it is the ninth house now to be built

by the carpentry students over the past

six years but the first to be built off site.

He said the four-bedroom house is being

constructed north-west of Kaitaia and

is a key component for the students’

practical element of the National

Certificate in Carpentry.

In July, 13 students started building

the house at Weber Place. Nearing

completion, the students are now eager

to finish the first house they have been

involved in building and to high standards.

So far, the students have kept to schedule

... they completed the foundations,

frames, wall cladding, roofing, the

carport, doors and the windows of the

house were in, and it was “weathertight.”

Steve believes the project demonstrates

essential life skills to the students. Even

the basics such as turning up to work on

time, was having a desired effect on their

development and can-do attitude.

Steve recognises that planning is

important in the building trade as

working to tight deadlines becomes

critical for whether or not a project slips

behind or stays on schedule. He suggests

that this was a particularly important

work habit to develop early on in a

building career.

“We aren’t teaching speed, this will come

with time when they are employed in the

industry. At the moment we are teaching

basic carpentry skills and techniques, so

that potential employers will have an

apprentice that has at least got the basics

right and is able to take instructions on

the first day of work.”

Steve says that working on the project

was something “tangible” that the

students would be able to use as

evidence of previous work experience to

a prospective employer.

“This practical experience is the most

pleasing part of the course for them,

which backs up the theory they have

learnt during the year. They are able to go

and put all of that into practice,” he says.

If the National Certificate in Carpentry

(Level 4) interests you or would like

information on any of the other

trades NorthTec offers including a new

entry-level Certificate in Elementary

Construction find out more by visiting

www.northtec.info.

Steve says one of his Elementary

Construction students is getting work

experience at Omaha Beach (east of

Warkworth) with a building company

that will employ him as an apprentice, at

the completion of this year’s course.

Students work on their own house project

43

dec/january 2012 inhouse

Documents

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sensible pg

helplines pg

wellington pg

insurances pg

tooltube pg

force pg

audit pg