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Insurance cover for LBPs – Pgs 16, 17
INHOUSE
Activity approved by the Registrar
April / May 2012
– Pg 15
Calling all ITaB and CBANZ employed Apprentices ...
... Are you up to a challenge?
Consumerism gone mad in building – Pg 12, 13
The official magazine of Certified Builders Association of New Zealand Inc
CBANZ welcomes new Chief Executive Officer – Pg 5
CBANZ Annual Conference18-19 May 2012 Wellington
Pgs 6,7
Contents
Unique Antarctic opportunity pg 4
Conference discount for ITaB apprentices pg 4
Notice of Special Business pg 5
CBANZ Annual Conference pg 6,7
Licensing - Supervision: LBP pg 8
Licensing - Earning your points pg 9
Consumerism gone mad in building sector – Geoff Hardy pg 12,13
ITaB news pg 14
3rd Annual Apprentice Challenge pg 15
Guarantees and Insurances pg 16,17
RBW Seminars pg 18,19
Around the regions – Wanaka Pg 20
Hunting & Fishing giveaway pg 24
Health and Safety update pg 25
Tax and property sales – IRD pg 26,27
Q&A: The law at work – E2Law pg 29
Installing insulation and getting it right pg 30,31
ToolTube pg 32
Licensed – Show it! pg 32
CBANZ websites pg 34
CBANZ Helplines pg 35
Message
3
Te Papa in Wellington is the stunning venue for this year’s Annual CBANZ National Conference – 18-19 May
Pgs 6,7
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 is my final inhouse report as my term as
Chairman comes to an end at the 14th CBANZ
Conference to be held in Wellington on 18th
and 19th May 2012. I would like to thank
everyone for their support and help during this
term. The three years have gone very quickly
but enjoyably and it has been a bonus to have
had this role.
The Certified Builders Association, Department
of Building and Housing and Winstone
Wallboard’s Roadshow on Restricted Building
Work has been in your area. The support this
Roadshow has been given by CBANZ members
is very pleasing to see. Thank you to Dion and
Melanie for presenting a great Roadshow. To
our partners thank you for your support.
I often wonder about those builders who don’t
belong to this Association, as to how they are
going to understand or work in this industry
when they don’t have any of the contractual
documents or Guarantees this Association has
available for its members. I can only say that
you need to belong to this Association so you
are kept up to date in what is happening in
your industry.
The economy is starting to show signs of
improvement which will bring a heavy
workload to all of us. I refer you to the article
in the inhouse February/March 2012 page 12
(Make sure all your contract documents say the
same thing) – well worth the read.
For those still making up their minds on going
to the 14th CBANZ Conference to be held in
Wellington this is a great time to learn from
the workshops available and network with
the other members, so come and join us in
Wellington.
See you there.
Allan Shaw
Chairman
from the Chairman
newsassociation
4
The CBANZ Conference in Wellington offers
the opportunity to make a unique purchase
on Saturday 19th May. A core sample of
granite from Antarctica will be auctioned
with funds going to the Apprenticeship
Scholarship Trust. The auction will be held at
1.30pm during the conference lunch break.
The granite sample was donated to the
Cook Strait region of CBANZ by Webster
Drilling and the region has kindly passed on
the donation for the auction to benefit the
Apprenticeship Scholarship Trust.
The core sample was taken from the Italian
Base at Terra Nova Bay in Antarctica in 1999.
It is 300mm in diameter with a 100mm hole,
approx 75mm thick though the thickness
varies.
The pilot hole was drilled to provide a large
diameter hole through a granite bluff to
A unique opportunity
Certified Builders Association of New Zealand Incorporated
NOTICE OF ANNUAL GENERAL MEETING
2011 FINANCIAL REPORT
A copy of the 2011 Financial Report is now available on
CBANZ website. It will also be included in the Conference
Programme in delegate’s satchels at Conference.
Any items that you would like discussed at the AGM, please
email or fax to CBANZ CEO Grant Florence by 5.00pm
Monday 30th April 2012.
Facsimile: 09 927 7721
Email: [email protected]
Notice is hereby given that the Annual General Meeting of Certified Builders Association of New Zealand Incorporated will
be held on Saturday 19 May 2012 commencing at 2.15pm at Soundings Theatre, Te Papa, Wellington
AGENDA
1 Welcome and Apologies
2 Minutes from last Annual General Meeting 11th June 2011
3 Chairman’s Report
4 Chief Executive’s Report
5 Presentation of the Annual Financial Report for the year 2011
6 Announcement of Directors of Board
7 Special Business (as required)
8 General Business
ITaB Apprentices have the
opportunity to further
their learning by attending
CBANZ Conference in
Wellington and are
sponsored by the AST Trust
(Apprenticeship Scholarship
Trust) 50% discount off the
Registration fee. (Function
costs are at full rate.) Go
online www.certified.
co.nz and download the
Registration form, complete
and send to CBANZ.
Conference discount for ITaB Apprentices
come out into the sea well below sea
level. The hole then provided a conduit
for pipework to the seawater intake.
Pipes draped over the bluff were being
constantly crushed by the sea-ice.
5
6
7
The scope of the carpentry licence covers many aspects of Restricted Building Work on site from footing excavations to installation of bracing plaster board. Many of these specialist trades will require supervision for a record of work [memoranda] to be signed off.
The description under the licensing
system is as follows. Provide control or
direction and oversight of the building
work to an extent that is sufficient to
ensure that the building work
• is performed competently
• complies with the building consent
under which it is carried out
On page 11 of your CBANZ Site
Handbook the Association offers advice
for wage earners and labour-only
engagement associated to supervision.
Do not assume the role of supervision
– this must be acknowledged in writing
and preferably within your terms of
engagement i.e. contract/employment
agreements.
As an LBP you will be required to declare
within your Record of Work [memoranda]
that supervision took place. Don’t forget
to note who was the contractor engaged
in the restricted building work.
Prior to licensing as a practitioner you
had a “duty of care” to the homeowner
and subsequent homeowners. Under
licensing this does not change, duty of
care also encompasses the LBP engaging
in the role of supervision.
On page 3 of your CBANZ Site Handbook
the Association has listed some guidance
points to assist you with meeting the
requirements of supervision. In addition
to these you might like to obtain a
producer statement from the unlicensed
contractor, which in itself is a record of
work for the job file outlining ...
• who the contractor is and
company legal identity
• company details
• site address
• contractors qualifications – are
they an approved applicator of
a system? [this is a competency
indicator]
• scope of work undertaken
• product/install guarantees on
offer
• have them sign as a declaration
that their work complies with the
approved plans and specifications.
Along with the suggestions listed on
page 3 of your Site Handbook this is
compiling evidence of your competency
involving supervision. It also creates a
paper trail of trades involved with your
particular job.
The free record of work [memoranda]
that you receive with the Site Book
will now include producer statement
templates and record of works that
you can use for your specialist trades,
no excuses for them not to have these
signed before they leave the site.
Supervision – LBP
By Jason McClintock
Operations Manager
Licensed Building Practitioner
From the desk at Operations LICeNSINg
8
To order your Site Handbooks
email Millie Turkington on
These will be charged out at $10
for a pack of 5 Site Handbooks
plus additional free record of
works [memoranda] and producer
statement templates.
9
Licensed Building Practitioner skills maintenance pointsOne hour learning = one skills maintenance point
Any learning of building related information of a
technical nature is valid for points
• inhouse
• Local members meeting
• Reading a merchant’s magazine
• Onsite training
• Any off site training or seminar
• Business training that will affect your
building business
• Formal training such as a level 5 course
Don’t forget to keep your own register of points
accrued and evidence of attendance e.g. meeting
flyer.
eArNINg your PoINTS
The leaky home crisis was the catalyst for most of the new building laws that have been introduced over the past decade. Those reforms have largely stemmed from the Hunn Report of August 2002, which was a very good analysis of the state of the building industry at the time, and the factors that gave rise to leaky homes.
However the one weakness of the Hunn
Report was that it made a number of
assumptions about the inadequacies
of our justice system, without a proper
understanding of the relevant law. The
overall thrust of their conclusions was
that homeowners were at a significant
disadvantage when attempting to
Geoff Hardy is a specialist
commercial lawyer in Auckland
and also a member of the
CBANZ Board.
Contact Geoff on 09 379 0700
Consumerism gone mad in the building
sectorhold builders to account for shoddy
workmanship, and that the power
balance was very much in favour of the
builder.
The reality, in fact, is the opposite.
Our law of contract and our tort of
negligence, which applies to builders as
much as to anyone else, has been around
for centuries. Since 1993 consumers have
also had the benefit of the guaranties
and remedies that apply to building
services under the Consumer Guarantees
Act. Homeowners can enforce those laws
against builders in the Disputes Tribunals
and in the Courts, just like any other
citizen can.
But unlike any other citizen, homeowners
have two additional methods of resolving
their grievances that are unique to the
building industry – the Weathertight
Homes Resolution Service, and the
Construction Contracts Act 2002. On
top of that, under most of the building
contracts in common use they have the
options of negotiation, mediation, and
arbitration as well.
They can also enforce their rights. Owner-
operators of building companies that
have gone into liquidation are just as
much liable as their insolvent companies
would have been. And in New Zealand,
Councils are liable to homeowners to a
much greater extent than in overseas
countries. Plus, under our joint and
several liability rules the homeowner can
often recover 100% from the Council and
leave the Council to recover from the
other liable parties.
Despite this, it remains the official view
that homeowners are starved of legal
rights and remedies. And so a raft of
consumer-friendly provisions were duly
approved by the Cabinet in August
2010, and have found their way into the
Building Amendment Bill (No. 4) that will
shortly be referred to a parliamentary
select committee for a round of public
submissions.
If the No. 4 Bill is passed without
modification, then homeowners who
believe they have been the victims of
shoddy workmanship will have a choice
between five different laws covering
essentially the same thing, but all
slightly inconsistent with each other.
They will be able to sue for negligence,
or for breach of contract, as they have
always been able to do. They will also
be able to enforce the builder’s implied
service guarantees under the Consumer
Guarantees Act. They can also enforce
the implied warranties under the
Building Act, which are very similar to the
Consumer Guarantees Act guarantees,
but run in parallel with them. Finally,
they can enforce the new one year
warranty for defective building work.
The implied warranties under the
Building Act require the builder to be
conscientious and diligent, to comply
with the plans & specifications, building
consent and Building Code, to achieve
12
13
the agreed completion date, and to meet
the client’s reasonable expectations.
Those obligations seem fair enough, but
if the homeowner believes they have
been breached, he can simply cancel the
building contract. It doesn’t matter how
minor the breach is or how far advanced
the project is, and he doesn’t have to
give the builder an opportunity to fix it
first.
These warranties (and the corresponding
right to cancel) apply not only to
builders, but also to designers (architects,
engineers, and draftsmen) who design
the structural components or the
external envelope of a household unit.
The warranties are also automatically
implied into every agreement for the sale
and purchase of a household unit where
the vendor is an “on-seller”. On-sellers
are people who build a household unit,
or arrange for it to be built, or acquire a
household unit from the first owner, in
each case for the purpose (or with the
intention) of selling it. However the same
right to cancel does not apply, so the
purchaser’s remedies will be found in the
sale and purchase agreement itself, or
the Contractual Remedies Act 1979.
In addition, if the homeowner believes
there has been “defective” building
work, and the defect is capable of being
remedied, he has the option of notifying
the builder or designer within one year
of completion. In that case the builder
or designer must remedy the defect (in
his own work) within a reasonable time.
However, all the homeowner needs to
do is “assert” that there is a defect. If
the builder or designer does not then
prove (on the balance of probabilities)
that it is not in fact a defect, then the
homeowner’s assertion is automatically
deemed to be correct.
Of course all these rules assume that
shoddy workmanship is self-evident,
whereas in reality it is often just a
genuine difference of opinion. Builders
may argue that the alleged defects are
too trivial or nit-picky, or the client wants
a better standard than the one agreed
and paid for, or the work won’t be
shoddy once it is finished, or the defect
has been caused by the designer or a
tradesman who has contracted directly
with the owner, rather than the builder.
The smorgasbord of rights and remedies
that homeowners are going to be given,
will only make these issues much more
complex to resolve, not less.
DISCLAIMER: This article is not intended
to be relied upon as legal advice.
.From your co-ordinator
Apprentice news
Completion Certificates
What an incredible two months since the
last inhouse. On 1 February l started a
national roadshow with the Department
of Building and Housing (DBH) presenting
the latest information on Restricted
Building Works (RBW).
The roadshow has exceeded
my expectations and the DBH staff were so impressed with our
professionalism they decided not to use independent contractors to do the
majority of the events and only sent their own staff (kudos for CBANZ).
We have been using venues throughout NZ – from our loyal resellers
to Unitec and polytechnics – which have paved the way to get all the
information to our members and unaligned builders.
The feedback from each region and the numbers attending shows how
aware we are of the importance of Licensing. We have given away over
500 membership packs in the past 6 weeks, so hopefully we will start
seeing a real spike in our membership.
A special thank you to Winstone Wallboards, loyal supporters of Certified
Builders, who have been sponsoring every event throughout the country
and are once again supplying first prize for our Apprentice Challenge.
On that note, we have sent out all the competition forms for our National
Apprentice of the Year, which once again is being supported by ITM in all
the regions. If you have a young apprentice please make sure you let them
know it’s happening, we need as many participants as possible to make it
as successful as last year.
Ben from Builtin NZ and myself joined Deane Fluit and the Central Otago
CBANZ team to help raise the profile of CBANZ in the southern region at
the 75th Annual A&P show in Wanaka. Over 20,000 people attended the
event over two days, so it was well worthwhile, with great feedback from
the public, so keep up the good work guys.
See You On The Road
Dion
ITaB would like to congratulate the following
Apprentices on Completion of Apprenticeship
Carpentry
Andrew Sloan BOPP
James Gilbert CPIT
Joseph Henry CPIT
George Cowper NMIT
Joel Davies Northtec
Cameron Barratt-Boyes UNITEC
Matthew Bell UNITEC
Stefan Biggelaar UNITEC
Ian Burt UNITEC
Michael Christianson UNITEC
Joe Dowden UNITEC
Tyson Edwards UNITEC
Jonathan Hicks UNITEC
Daniel Sutton UNITEC
Adam Bungard Wintec
Martin Goile Wintec
Bryce Hickey Wintec
Nathan Loveridge Wintec
Joel Macreadie Wintec
David Mulingani Wintec
David Samson Wintec
Dylan Tuckey Wintec
David Young Wintec
CPIT – Christchurch Polytechnic Institute of
Technology – Canterbury Region
NMIT – Nelson Marlborough Institute of
Technology – Nelson Region
BOPP – Bay of Plenty Polytechnic
Wintec – Waikato Institute of Technology
Congratulation on the completion of
Apprenticeship in Carpentry, proudly supported by
the Apprentice employers, Polytechnic’s and Tutors
and ITaB.
ITaB Stickers are being sent directly to
all new ITaB employers, please contact
ITaB directly if you would like free
promotional stickers to show your
support of the ITaB programme.
ITaB Green Cards are now being sent
directly to the paid apprentice.
The benefits include;
• Discounted Publications including the
NZS3604:2011, E2 Moisture Manual
and SNZ 3604 onsite Handbook.
Contact Millie T ph 0800 482 284
• inhouse Magazine delivered bi-monthly
with articles and information to keep
you up to date with the industry.
• Vodafone, Swazi Clothing, Caltex
and AA and Fisher & Paykel, Harvey
Norman, Noel Leeming discounts and
plans upon application. 0800 482 284
• General Liability/Car/Contents
discounted insurance call Gwenda
CBA Insurance ph 0800 237 843
Contact ITaB on 0800 482 284 if you have
any problem relating to your Green Card.
green Cards offer numerous benefits:
1515
3rd Annual Apprentice Challenge
Are you employed by a Certified Builder or are you an ITaB apprentice?
Sign up to the challenge and elevate yourself to the next level.
Step one: Fill in a registration form and questionnaire return to [email protected] or if you are an ITaB apprentice return to your Tutor at your enrolled Training provider before 15th April. To download your application, please visit www.certified.co.nz, click on the About Certified Builders tab, click on conference information on the left hand navigation bar.
Step two: Finalists will be chosen from the regions to master a practical challenge, held at your local ITaB provider or ITM store, you will be advised of venue and dates. Full details will be supplied of practical challenge requirements.
Calling all Apprentices…
Step three: The regional finalists from this challenge will receive an all expenses paid trip to Wellington* to attend the Certified Builders National Conference 18th-19th May.
Step four: The winner will take home an Outward Bound Course to the value of $3,750. The runner up will win $2,000 worth of DeWalt power tools and the third placegetter will win a $1,000 voucher from ITM.
For more details contact: Dion Tapper on 0800 482 284 * Conditions Apply
16
• Include it in your quote as “Homefirst 10 Year Builders Guarantee – underwritten by CBL Insurance Limited”
• Complete the guarantee application at the same
time as your building contract
• For an application form contact Millie T on 0800 237 843 email: [email protected]
17
A man noticed that his credit card had been stolen but didn't report it.
The thief was spending less than his wife.
The Department of Building and Housing (DBH) roadshows on Restricted Building Work – in conjunction with CBANZ – have been rolling through the country.
By Thursday 1st March the roadshow had
reached Hawke’s Bay. The event was a
great success with 153 builders turning
up to learn about the changes in the
industry with the introduction of the
new Licensed Building Practitioners (LBP)
licences.
The EIT-organised event was the biggest
turnout the roadshow has had to date
from when it started in Invercargill
and began working its way north from
the beginning of February. The great
attendance was a reflection of EIT’s
dedication to the local building industry.
EIT made sure that as many builders as
possible were aware of the event and
able to attend.
The speakers were very impressed
with the EIT trades complex and how
well organised and professional the
EIT Carpentry team is. We even had
inquiries from the DBH speaker if it
would be possible to host other future
seminars at EIT.
The food for the evening was provided
by EIT’s hospitality students and was
very well received. It was definitely the
best spread we have had at any venue
restricted Building Work seminars
and brought another positive comment,
from a roadshow speaker.
We also took the opportunity to present
a power point presentation on all of
our carpentry programmes from level
2 to level 5. Builders really enjoyed
the evening and we received a lot of
positive comments and encouraging
feedback on the direction we are taking
Above and top: Builders pack the Restricted Building Work seminar at EIT in Hawke’s Bay.
18
Around the regions
with our carpentry programmes.
The EIT carpentry team was very
busy with questions about signing
up apprentices and securing work
experience for our students. Overall a
great evening and a fabulous way to
showcase the top quality facilities and
get greater industry involvement and
support for EIT’s carpentry programmes.
– Shane Sigglekow,
Carpentry Apprenticeship Programme
Co-Ordinator, EIT
Builders are all ears at the Restricted Building Work seminar in Papakura last month.
19
Wanaka had its 75th Annual A&P Show this year and being the
second largest show of its type in the country the Central Otago
CBANZ branch decided to put a stand in. The main aim was to get
the CBANZ brand out there and noticed by the public. CBANZ
Business Relationship Manager Dion Tapper and Ben Rickard from
Builtin were asked to attend – two reasons for this:
1. If the public asked specific questions about insurance or CBANZ
membership the people were there to give the answers
2. To give local members the opportunity to have a personal client.
So with the framers sponsored by PlaceMakers Wanaka and the
Around the regions
Central otago builds CBANZ brand at Wanaka showroof trusses sponsored by Mitre 10 Wanaka (our two main
local suppliers) CBANZ Central Otago built a little house
for Ben and Dion. The bonus for them was the coffee cart
parked right next door which provided a constant queue so
you could see people looking and reading.
Central Otago CBANZ President Deane Fluit says his gut
feeling was that the public needed to be made more aware of
the CBANZ brand: “So hopefully we helped this a little bit.”
Deane says a big thank you is due to National Support Office
for sending signage and support information and also to
Dion and Ben for their support during the weekend.
22
The Best Practice Guidelines for Working at Height in New Zealand are being published by the Department of Labour.
These guidelines provide practical
guidance for employers, contractors, sub-
contractors, and employees and all others
engaged in work associated with working
at height.
They have been prepared in association
with 21 representatives from businesses
and organisations in the construction
industry in New Zealand.
Preventing falls from height is a priority
for the Department of Labour and the
guidelines are designed to help everyone
meet their obligations under the Health
and Safety in Employment Act (1992).
The Department is producing a Working
Safely at Height Toolkit of 6 factsheets to
be used together with these guidelines.
The factsheets cover topics including
planning a safe approach to working at
height, how to select equipment for the
job, short duration work at height, edge
protection, temporary work platforms
and restraint technique.
Investigations by the Department of
Labour show that more than 50% of
falls are from less than three metres and
approximately 70% are from ladders and
roofs.
Construction workers are getting
seriously injured and killed from falls
from height for a number of reasons
• the wrong safety gear has been
selected
• the gear isn’t up to standard
• the gear hasn’t been set up
properly
• there’s nothing in place at all to
ensure the safety of workers.
Builders, roofers, electrical workers,
painters and decorators are the most
likely to fall from height and seriously
hurt while they are working.
The Best Practice Guidelines for Working
at Height in New Zealand provide
everyone who is involved with working
at height clear direction on how to
manage the work in a way that will bring
down the death and injury toll.
These guidelines are generic and not
specific to one particular industry so they
can work together with other guidelines
that cover specific issues unique to
particular working environments.
The Department is reminding everyone
to think about the hazard of working
at height – before the job starts, when
it’s kicking off, and when the work is
underway.
It’s about spelling out the need to select
the most effective controls for managing
the hazard of working at height, starting
with elimination (do you need to go
up there at all?), then isolation (edge
protection, scaffolding), and only then
minimisation (fall restraints, ladders).
It’s also about making sure people have
the skills and supervision to work safely
at height.
Falls from height in construction are
preventable. Doing nothing is not an
option.
For more information about working
safely at height visit www.dol.govt.nz/
prevent-falls/ or call the Department’s
Contact Centre 0800 20 90 20 if you have
specific questions or concerns about your
workplace.
Best Practice guidelines for Working at Height
From 1 August 2011 the NZBC B1
Compliance Document required
that concrete slab-on-ground
constructed in accordance with NZS
3604:2011 Timber Framed Buildings
on good ground be reinforced with
a minimum of 2.27kg/m2 of Grade
500E reinforcing mesh fabric which
conforms with AS/NZS 4671 Steel
Reinforcing Materials.
To assist builders to produce a robust
and resilient concrete slab-on-
ground CCANZ has made available
‘Residential Concrete Slab-On-Ground
Floors’, an easy to read 12-page
leaflet that gives guidance on good
practice in relation to such aspects
as slab levels, concrete strength,
the new reinforcing requirements,
control joints, bay sizes, crack
minimisation, as well as placing,
finishing and curing techniques.
The leaflet is part of the Coming Home
to Concrete campaign, which has been
designed to raise awareness of the
advantages of residential concrete
construction, from floor slabs through to
fully concrete houses.
CCANZ chief executive Rob Gaimster
believes that New Zealand currently
has a unique chance to fully explore
the possibilities that can be achieved
through the use of concrete and concrete
products in our homes.
“As we move forward to tackle the
challenges posed by the Canterbury
rebuild as well as the predicted housing
shortage in Auckland, the significant
role concrete can play in providing
comfortable, stylish and strong homes
at affordable prices must be part of
everyone’s thinking.
“The Coming Home to Concrete
campaign illustrates how we have the
opportunity to enhance our residential
building stock by utilising the many
reinforcing concrete best practicebenefits of concrete, and in turn
help ensure resilient and healthy
homes for all New Zealanders.”
Along with the slab-on-ground
leaflet, the Coming Home to
Concrete campaign provides a
range of print and web-based
resources to help all those involved
with residential construction make
informed choices and optimise the
potential of concrete and concrete
products.
Key amongst these resources is a
short film fronted by television
personality Kevin Milne that
highlights the candid views of
homeowners, architects and
builders, during interviews
structured around the attributes of
concrete.
A copy of the Residential Concrete
Slab-On-Ground Floors leaflet is
enclosed with this issue of inhouse
magazine. For additional copies contact
CCANZ – [email protected]. Or
to find out more about the benefits
of Coming Home to Concrete visit
www.cominghometoconcrete.co.nz
Recent amendments to the New Zealand Building Code (NZBC) in relation to reinforced concrete slab-on-ground are detailed as part of the ‘Coming Home to Concrete’ campaign, recently launched by the Cement & Concrete Association of New Zealand (CCANZ).
Builders Brag Page
24
Ph: 0800 486 834 (0800 HUNT FISH)
Shop online or register for catalogues www.
huntingandfishing.co.nz
Send us in your hunting & fishing pics
and we’ll reward those that get
published on this page with a
Hunting & Fishing New Zealand
Fleece Gutbusta Bush Shirt
valued at $39.99.
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 full contact details!)
Please note photos submitted must be from a CBANZ or ITaB
member or a company affliated with Certified Builders.
32 stores nationwide
Above: ITaB apprentice Callum Rogers, of MVZ Builders Ltd in Nelson with a 197 pound boar taken in Nelson area.
Left: Apprentice Mark Gill from CBANZ member Dunnet Builders in Napier with a goat.
25
There are a number of compelling reasons to have an effective Health and Safety System. The most obvious of these include the desire to keep everyone safe and the need to meet the legal requirements of the Health & Safety in Employment Act.
Until recently the Residential Building
Industry appeared not to be a prime
target of the Department of Labour
(DoL). In certain parts of the country
the only time you would ever see an
inspector was if you reported a serious
harm injury. As part of DoL’s new
initiative to reduce the number of falls
from height, this is about to change.
Department of Labour inspectors will
focus on getting out and visiting sites
to check if they are up to the required
standard. Special attention will be given
to working at height and fall protection.
If they find a problem they will issue an
improvement notice that requires you
to fix the issue. If they return, and the
required improvements have not been
made, they will issue instant fines. For
more information on the new Fall From
Height Prevention Campaign go to www.
dol.govt.nz/prevent-falls/
update on Christchurch
As those of you already in Christchurch
will know you cannot do any EQR related
work without having a Health and
Safety System that meets the agreed
standard. This standard is much higher
than previously expected in Residential
Construction as the Key Industry
Associations and Project Managers are
taking the opportunity to raise the bar.
All contractors need to complete a pre-
qualification document that shows their
Health and Safety System meets the
required standard.
A Health and Safety update:Department of Labour to Get Tough
All builders intending to do EQR work
will need to have or seek a system
that meets this pre-qualification
standard. HazardCo can help you
meet the requirements of the Project
Managers running insurance projects in
Christchurch. We are available to provide
assistance for all builders working or
intending to work in the Christchurch
area.
The year ahead
No doubt 2012 is going to get busier for
all of us and Health and Safety is always
the first thing to get stuck on your “to
do list“ when this happens. We urge you
to ensure that you have an approved
system in place. They are very simple and
inexpensive.
I am sure you do not want to become
another builder who thought “it would
never happen to me“.
Mark Potter0800 555 339
You’ve just sold a property. Have you
checked to see if there are any tax
implications? Even the sale of your
private home could be taxable in some
cases. It pays to get it right! In this article,
Inland Revenue tells you what you need
to know.
Please get advice!The tax laws applying to property transactions can be complex. In this article, we only give you an overview of some of the most common situations.
If you’re planning to buy or sell a
property, we recommend you talk to
your tax advisor before you take action.
Properties are ‘big ticket’ items and if
you’re not aware of all the ins and outs,
you could run a significant financial risk.
Please refer to our guides!
There’s a lot of general information about
properties and tax at www.ird.govt.nz.
Please refer to the following guides:
• Tax and your property transactions
(IR361)
• Buying and selling residential
property (IR313)
• I have bought and resold a property
at a profit. Do I have to pay tax?
(IR314)
All of our guides are found under ‘Forms
and guides’ in the right-hand margin of
the homepage.
Our property decision tree can indicate
whether you have a tax liability when
you sell a property. You can access the
decision tree by clicking through the
path “Businesses & employers/Residential
property/Buying property/Why your
reasons for buying a property are
important”.
Tax and property sales
As an overview, to determine if a
property sale is taxable you need to ask
yourself three questions:
1. What was my intention when I
bought the property?
2. What is my history of buying and
selling properties?
3. Am I a builder, developer, or
property dealer, or associated with
any of these people?
The intention testIn general, if you buy a property solely as
an investment to earn rental income, and
you have no plans to resell the property,
any profit on sale will be a capital gain,
which is not taxable. You won’t be able
to claim a deduction if you make a loss.
On the other hand, if you buy the
property with the firm intention of
selling it when prices rise, you’ll have
to pay income tax on your profit. A loss
on sale is likely to be deductible. This
rule applies even if you’ve owned the
property for a period of time, or you’ve
rented it out while you wait for the right
time to sell.
It’s important to note that you may
have to pay tax even if you only sell one
property – the deciding factor is your
intention at the time of purchase.
your historyPeople who have established a regular
pattern of buying and selling properties
may fall into the category of ‘property
dealer’. If you’re a property dealer, you’ll
need to pay income tax on your profits.
Any losses on sale will be deductible.
Builders, developers, and property dealersIf you’re a property owner, and you or
an associate are involved in dealing in
land, building and construction work,
or in subdividing or developing land,
you may be subject to special tax rules.
For example, the amount of time you’ve
owned your property becomes an
important consideration for tax purposes.
If you or an associated person are
undertaking any of the above activities
and:
your income tax return
Any rental income you earn is
taxable, and expenses related to
earning that income are deductible.
If you sell a rental property for more
than its book value, the depreciation
recovered becomes taxable income.
Do you need to pay income tax on
your profit from a property sale? The
sale price is returned as income in
your tax return, and you deduct the
purchase price in the same return.
Any losses are calculated in the same
way.
your gST return
If you receive rent from a commercial
property, you need to include the
rental income in your GST return.
You can claim GST credits for some of
the expenses related to earning that
income.
When a property is part of your
taxable activity, you may be able to
claim a GST credit at the time you
purchase the property. When you sell,
you’ll probably have to include GST
in the sale price and pay the GST to
Inland Revenue.
Rent received from a residential
property is exempt from GST. As such,
you are unable to claim GST credits
for any expenses related to this
source of income.
26
27
• sell any property that is part of the
assets of the activity, or
• sell any other property (which is not
part of the activity) within 10 years of
buying it or (for builders) completing
improvements to it,
any profit may be taxable.
There are some exceptions: the sale of
your private home or business premises
will not normally be taxable under these
rules.
Example
Trent started buying and selling
residential houses in 2004. By the end
of 2004, he had established a regular
pattern of buying and selling and was a
dealer for tax purposes.
Trent co-owns Trent Rentals Ltd, a
company that buys residential rental
investment properties. In January 2006,
the company buys a rental property to
hold and rent. In December 2010, rentals
in the area are falling and the company
sells the property. Income tax would not
normally be due on the profits from the
sale, because the company bought the
property as an investment. But, because
Trent Rentals Ltd is associated with Trent,
who established himself as a dealer
before this property was bought, and it
was sold within 10 years, Trent Rentals
Ltd must pay tax on the sale regardless of
the company’s original intention to hold
the property as a rental investment.
Private homesBuying and selling your private (family)
home usually has no tax consequences.
However, some people buy a family home
intending to resell it, and they may do
this regularly as a way of earning income.
If you have a regular pattern of buying
and selling your family home, you may
have to pay income tax on your profits.
Phil Penney & his team at Superior
Construction Limited are looking
smart with their work shirts branded
up with their Company name and the
Certified Builders logo!
Thanks to Dina (Phil’s wife) and her
careful fashion decisions, the team are
looking great!
Keep up the great looks guys!
Looking Superior
29
Danny Jacobson & Trudy Marshall e2Law — Employment &
Environment Law
The following questions have arisen in
cases in which e2Law has recently been
involved:
eMPLoyee oBLIgATIoNS AFTer eMPLoyMeNT eNDS
Q: We are a small building company
operating in a very tough
environment with a lot of
competitors. Our senior foreman
has resigned from employment and
is currently working through his
notice period. He has told us he is
going to work for one of our main
competitors. We have checked his
employment agreement and there
are no restraint of trade or similar
clauses. Can we stop him contacting
our customers or competing with us
after employment ends? He is very
popular with our key customers and
they could well choose to transfer
their building business to his new
employer.
A: While your employee will continue
to have a number of obligations
to you during employment,
once employment ends there
is no legal duty or obligation
towards a previous employer. If
there are no restraint of trade
or non-solicitation clauses in his
employment agreement, then after
her employment ends he will be
able to contact your customers,
encourage them to move their
business to his new employer,
encourage other employees to
change employment, and actively
compete with you. For the future,
you may consider updating your
agreements to include restraint of
trade, non-solicitation of customers
and non-solicitation of employee
clauses. These can provide your
business with vital protection in the
event that a key employee leaves,
at least for a period of time while
you try to preserve your existing
customer relationships.
LeAVe WITHouT PAy
Q: One of our builder employees has
recently told us that he is planning an
extended 3 month holiday overseas
to visit his children in the UK and
Europe. He seems to be proceeding
on the basis that he can use up the
15 days annual leave he has owing
and he can take the balance of the
holiday as leave without pay. We are
agreeable to him taking the 15 days
annual leave but in our small business
it is simply not practical to be one
employee down for that lengthy
period and we are concerned that
this would also set a precedent for
other staff to take extended breaks.
What are our rights here?
A: An employee does not have the right
to take leave without pay whenever
he or she pleases. It is entirely up
to you whether you agree to this
extended break or not. If you advise
your employee that you do not agree
to him taking the leave without
pay, it will then be up to him to
either shorten his holiday to the 15
days annual leave, or to resign from
employment in order to take his
extended break.
PAyINg ouT HoLIDAy PAy
Q: For some years, we have followed
a practice of paying out any annual
leave owing to each employee at
the end of every financial year
regardless of whether the employee
actually takes the leave or not. This
works for us as it keeps annual
leave balances under control. One
of our admin staff has told us that
she thinks this is unlawful – is it?
A: Yes, this is
unlawful. You
cannot pay out annual
leave other than when
an employee leaves his or her
employment, or in accordance
with the 2011 amendments to the
Holidays Act, which allow for up to
one week’s annual leave to be paid
out in every entitlement year if an
employee requests and an employer
agrees. It is unlawful to include
a requirement in an employment
agreement (or otherwise) that an
employee must make a request for
leave to be paid out. A requirement
to pay out a portion of leave
cannot be a term or condition of
employment or raised in negotiations
about terms and conditions relating
to salary or wages. An employer
may have a policy that allows the
employer not to consider a request
for pay out – if so, the employee
cannot make the request.
Q&A – the law at work
29
Trudy Marshall and Danny Jacobson are Partners at Employment & Environment Law, Barristers and Solicitors, Tauranga. They operate the Employment Helpline for CBANZ members: ph 07 928 0529. They have also 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).
30
Installing insulation and getting it right!
30
By Verney Ryan, Beacon Pathway
While the focus of Building Code changes and Government subsidy schemes has been on encouraging more insulation in both new homes and retrofitted into existing homes, there’s growing concern that poor installation is undermining the campaign.
Installing insulation incorrectly reduces its
effectiveness at stopping heat loss. BRANZ
fitted insulation to a wall panel and tested
different sized gaps in their Guarded Hot
Box1. They found that R2.8 insulation with
16mm gaps would only perform as well as
R1.4 insulation. Even 4mm gaps reduced
the R value by 12-15%.
The danger is that if installation
problems occur throughout the house,
the cumulative effect on the thermal
performance of the house may mean that
it does not meet the energy efficiency
requirements of the Building Code, even
if the correct R value materials are used.
Typical problems
An audit undertaken for EECA (the
Energy Efficiency and Conservation
Authority) of insulation installed in new
build homes provides worrying reading2.
None of the installations, in their audit
of 58 houses, met the requirements of
New Zealand Standard NZS 4246:2006
Energy Efficiency – Installing Insulation
in Residential Buildings. This Standard
provides a best practice guideline to
installing insulation in order to achieve
good thermal performance.
The audits found typical problems
affecting the home’s thermal
Tips for good insulation
• Only insulate when moisture
content of timber is less than 16%.
• Fit insulation closely to framing –
there should be no gaps around
the outer edges of the segments
and framing, or between butted
joins.
• Make sure there are no folds in the
segments themselves.
• Make sure there is no tucking.
• Insulation material should not be
compressed – it will not perform to
its best.
• Insulation materials should be dry
and undamaged.
• Leave a clear space of at least
25mm between the insulation and
roof or roof underlay.
• Leave clearances around recessed
downlights, unless they have a
CA (close abutted) rating. Better
still, don’t use downlights in your
build at all – read about Consumer
NZ tests on downlights and
heat loss to find out why (www.
consumer.org.nz/reports/recessed-
downlights).
• Leave clearances around auxiliary
control equipment, metal chimneys
and flues.
1. Cox Smith, I. (2010) SR232 Using infrared thermal imaging to audit retrofitted wall insulation in houses.
2. Symon, S. (2010) Investigating quality of installation in new build residential houses.
performance were: folds, tucks, gaps,
compressions, missing insulation, and a
lack of insulation to the middle of the
top plate.
Other issues with installation included
the lack of a 25mm gap to the underside
of the roof underlay, which has the
potential to transfer condensation
and moisture to the insulation; as well
as significant safety faults through
insulating over or around recessed
downlights and electrical equipment.
ensuring good installation
The Insulation Association of New
Zealand has been formed to encourage
better performance in the supply and
installation of residential insulation
throughout New Zealand. The
Association has developed a training
programme offering industry-specific
training in site safety and on the key
requirements of NZS 4246:2006.
To get the best quality installation for
your clients, consider using a graduate of
their training programme. You can find
the names of graduates on the IAONZ
website (www.iaonz.co.nz)
Alternatively, if you prefer to install
insulation yourself, consider undertaking
the IAONZ training programme – you
may be surprised how much you can
learn about this important aspect of the
builder’s craft.
The better the installation, the better the
return for your clients in lower power
bills, and the warmer and cosier they will
be in their new home. All part of the
quality build process.
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.
www.beaconpathway.co.nz
3131
These photographs show typical installation problems from a range of houses. Using a high quality insulation product with a high R value is important – but no matter which product you use, installation of that product is the key to good performance.
Avoid compression and slumping of the insulation – it needs to be a good even fit to work effectively.
Tucks and folds in the insulation reduce its effectiveness and mean that the money spent on insulation is wasted.
Loose fill has covered this downlight – this is a significant fire risk.
Leaving gaps between
insulation and framing
allows heat to escape – and this
can halve the effectiveness of the insulation.
The whole area should be insulated for the best possible thermal performance – gaps like this ‘bleed’ heat from the building.
Gaps between blanket insulation laid in the ceiling
will reduce the effectiveness considerably.
32
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
Licensed? Show it!Certified Builders can now supply you with a suite of LBP stickers for:
Stickers are available in black/white or green/white of the LBP logo.
LBP Stickers green/white version Black/white versionWindow 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 current 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.
invoices, vehicles, letterheads, envelopes, windows and business cards
What they wanted:The Reliabuilt team specified a clean and user friendly website
with major emphasis on their past projects.
Job Build: The home page was designed to draw the browser’s attention
directly to Reliabuilt’s past projects, with easy viewing without
leaving the home page.
Job Outcome:A vibrant 4-page website with a Team page to build confidence
in the browser and lots of great quality images of past projects to
sell their services and prove their experience.
In easy steps you can have youR very own 4-page website
Take a look at one of the websites we have created www.reliabuilt.co.nz
Get a Website ... and your business can be on display 24 hours a day, 7 days a week, 365 days a year!
To find out how ... Contact eve ph 0800 CerTIFIeD or email [email protected]
just $695 (+ GST)
3
easier for the public to understand and locate a
Certified builder
Improved search functions
The upgraded and revamped website reflects 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.
Have you checked out our revamped website?
35
helplines5 FREE
employmentAdvice on any employment-related issue
is available from specialist Tauranga law
firm, Employment & Environment Law.
Danny Jacobson and Trudy Marshall 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
email [email protected]
Danny Jacobson
Trudy Marshall
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
email [email protected]
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
email [email protected]
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]
35
It’s your call!