dec 2015 - PlaceMakers
Transcription
dec 2015 - PlaceMakers
ISSUE 48 GET YOUR DECEMBER 2015 SKILLS MAINTENANCE POINT! WHAT'S ON YOUR CHRISTMAS LIST? 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Thanks to your support – which is always strong and hugely appreciated – we were able to donate more than $200,000. 6 Every year, the quality and scale of events put together by PlaceMakers branches around the country reminds me how much can be achieved with commitment and good planning. They say failing to plan is planning to fail, a warning that is reiterated throughout this month’s issue of Under Construction – whether you aspire to become a millionaire, buy a new business, or better manage your workforce. Looking ahead, assessing the risks, and determining how you might overcome them is key to sustainability and success. They say failing to plan is planning to fail, a warning that is reiterated throughout this month’s issue of Under Construction 16 This month’s update on the Health and Safety Reform Act, which focuses on overlapping duties, also highlights the importance of planning. Where more than one PCBU (person conducting a business or undertaking) is responsible for workers’ safety, it’s much more productive to consult and coordinate ways to meet the shared responsibilities than to duplicate efforts – or worse, both assume the other will take responsibility. Other regulatory changes – to the LBP skills maintenance scheme (see page 3) and the Construction Contracts Act (see page 15) – have also recently come into effect. Arm yourself with the information you need in order to plan with confidence. 22 With the holiday season and a new year approaching, make time to look at your business and determine your priorities for 2016. 2 SKILLS MAINTENANCE PlaceMakers seminars calendar; Fake LBP fined $3,000; New ‘mixed-model’ skills maintenance scheme now in effect 5 COMMUNITY NEWS Blue September raises more than $200,000; With hundreds of thousands left homeless in Nepal after two earthquakes, you can make a difference by volunteering your skills 8 PRODUCT NEWS Firth Designer Series 14 INDUSTRY NEWS Dwelling consents trend upwards; The Government has commissioned a report to improve urban planning rules; Construction Contracts Act amended 4 Business practices of your fellow builders BUILDERS’ BUSINESS 10 BUILDING & HOUSING GROUP In light of a recent report, MBIE reminds us what work is exempt from consent under Schedule 1 12 BRANZ Bevel-back weatherboards are back in vogue, but are you installing them properly? 16 WORKSAFE Who has the duty of care on a worksite with multiple PCBUs? Find the answers here 18 BCITO BCITO has developed a Strategic Workforce Development Framework to help construction industry businesses and employers better manage the development of their workforce 20 CROWE HORWATH Buying another business is a good way to expand, but make sure you go into the process with your eyes wide open 22 SUCCESSFUL BUILDER To take your building business to the next level and become a millionaire, learn to plan ahead 25 SPORT REPORT Hayden Paddon earns three more years with Hyundai Motorsport, while claiming another WRC Top 10 finish at Rally Spain 25 SKILLS MAINTENANCE Record your LBP skills maintenance – you’ve earned it! I wish you all a safe and enjoyable time! Gary Woodhouse 25 General Manager Operations & Marketing ISSUE 48 > DECEMBER 2015 >PUBLISHER >DCL Corporate Publishing > ENQUIRIES >[email protected]; (04) 384 5689 DCL Corporate Publishing reserves the right to accept or reject all editorial or advertising material. No part of Under Construction magazine may be published without the express permission of the publisher. All rights reserved. Opinions expressed or imagery in Under Construction magazine are not necessarily those of PlaceMakers or the publisher. No responsibility is accepted for the suggestions of the contributors or conclusions that may be drawn from them. Although the publisher has made every effort to ensure accuracy, the reader remains responsible for the correct use and selection of any tools, materials and systems followed, as well as the following of any laws or codes or standards that may apply. 1 TRAINING SKILLS MAINTENANCE xxx Building code clauses de-coded Skills maintenance – more than just points! Stay up to speed with industry changes and building code clauses SKILLS MAINTENANCE SERIES DEC 2015 with John Tait New ‘mixed-model’ skills maintenance scheme is now in effect PlaceMakers next round of skills maintenance seminars will focus on regulatory changes, technical guidance, ensuring you maintain the level of competence necessary to be a licensed building practitioner. C P laceMakers ninth round of seminars is almost complete, and the focus on building code clauses – and their common compliance issues – is generating unprecedented discussion among attending builders. Presenter John Tait, who has extensive experience as a building inspector, is using live examples to prompt builders to share their experience handling different situations. This round focuses on fall safety, warning systems, and access routes. “I expect builders to be a little surprised at what does and does not comply,” says John. “Come prepared Venue: Date: Time: PlaceMakers Blenheim PlaceMakers Nelson (Richmond) PlaceMakers Motueka Wellington Session 1 - Porirua Tuesday, 1 Dec Tuesday, 1 Dec Wednesday, 2 Dec Wednesday, 2 Dec 7:00am - 9:00am 5:00pm - 7:00pm 7:00am - 9:00am 5:00pm - 7:00pm Wellington Session 2 - Kaiwharawhara, Evans Bay, Hutt City Thursday, 3 Dec 7:00am - 9:00am PlaceMakers Kapiti PlaceMakers Levin Thursday, 3 Dec Friday, 4 Dec 5:00pm - 7:00pm 7:00am - 9:00am at Work Act, as well as outlining the changes to LBP skills maintenance. to get involved in the discussion!” Given that the Health and Safety Reform Bill has now passed, and changes to the skills maintenance scheme are starting from November, this round of seminars will include a review of the key concepts in the new WorkSafe Health and Safety Contact your local PlaceMakers to register your interest and build on the skills maintenance points you’ve already earned through reading Under Construction. Fake LBP brought to justice Prosecution of unlicensed builder fined for posing as LBP ‘first of its kind’ for MBIE M BIE’s Occupational Licensing Team has successfully prosecuted an unlicensed North Shore builder for misrepresenting himself as a person licensed to carry out or supervise building work or building inspection work, while not being licensed. Thirty-two-year-old Bin Zhang, also known as Aaron Zhang, was convicted and fined $3,000 in the North Shore District Court for charges brought under the Building Act 2004. Zhang, who has never been a Licensed Building Practitioner (LBP), undertook a bathroom renovation at a North Shore home and stated he was qualified for the job, completing and signing a Record of Building Work for Restricted Building Work, and provided a fake LBP licence number. The contract with the homeowner was terminated 2 Thomas says this prosecution is the first of its kind that MBIE has brought against an individual. a month later due to concerns about the quality of Zhang’s work. “The Building Practitioners Board, which oversees the LBP scheme, can take action against LBPs; however, the investigation of non-LBPs is undertaken by MBIE, as the government’s building regulator,” says Thomas. We hope this recent prosecution sends a clear message to builders that they can only sign off on restricted building work if they are an LBP - Investigations team leader Simon Thomas He was also trading as XR Builds and Renovation Limited, which is not registered as a limited liability company on the Companies Register. Investigations team leader Simon “We hope this recent prosecution sends a clear message to builders that they can only sign off on restricted building work if they are an LBP – the same goes for carrying out or supervising restricted building work. “Where MBIE has evidence of anyone operating outside of the law, they can expect to be caught and prosecuted accordingly.” hanges to the LBP skills maintenance scheme, announced earlier this year, come into effect last month and the gradual transition to the new skills maintenance scheme has begun. The new framework moves away from an entirely points-based system in favour of a new ‘mixed-model’ approach, with the aim of promoting more meaningful and relevant learning for LBPs. 2. YOU STILL HAVE TWO YEARS TO COMPLETE ALL ACTIVITIES Timeframes for meeting your skills maintenance requirements will not change – you still have two years to complete all activities before applying for relicensing. The new model will require LBPs to complete both compulsory and elective activities. Compulsory activities include reading LBP Knowledge articles in Codewords, completing a quiz after each article and demonstrating two examples of on-the-job learning. 3. READING LBP KNOWLEDGE ARTICLES IN CODEWORDS The articles cover important regulatory and technical information relevant to your licence class. Articles will be delivered directly to your inbox. The elective part of the new scheme remains largely the same. Each hour of relevant elective activity equals 1 LBP point. The only change is that the minimum number of points required has now been reduced by half. 4. COMPLETE A QUIZ AFTER EACH ARTICLE You will need to complete a short quiz following each article, which reinforces the information covered within that article. Although the new scheme officially started on 2 November, LBPs are only required to transition to the new system once they renew their licence on or after the change date. 5. ON-THE-JOB LEARNING IS NOW A COMPULSORY ACTIVITY On-the-job learning is an effective and efficient way of capturing how you continue to learn through the course of your work. Over the two-year timeframe, select at least two project examples where you’ve had to learn something new, or you’ve had to complete a more complex job. Evidence can include a copy of a Record of Work (RoW) form, a Certificate of Design Work (CoW form), or any other form which documents what you have done and what you have learned on the job. For example, if you are required to submit your next skills maintenance form by 13 May 2016, you will continue to do activities and earn points under the current scheme until then. From 14 May 2016, you will transfer to the new scheme. Key details on the upcoming changes to the LBP skills maintenance scheme include: 1. COMPLETING BOTH COMPULSORY AND ELECTIVE ACTIVITIES Completing compulsory and elective activities promotes meaningful and relevant learning, while saving you valuable time and resources in meeting your skills maintenance requirements. 7. THE NEW SCHEME COMES INTO EFFECT ON 2 NOVEMBER 2015 You will transfer to the new scheme once you have completed your skills requirements under the current scheme. For example, if you are required to submit your next skills maintenance form by 13 May 2016, you will continue to do activities and earn points under the current scheme until then. From 14 May 2016, you will transfer to the new scheme. 8. AUDITING Each year, a number of LBPs will have their skills maintenance records audited. Keep up-to-date copies of the skills maintenance activities you have completed by either uploading your records online or keeping a paper copy on file. 9. IT’S NOT ALL ABOUT THE POINTS! The purpose of the new scheme is to promote meaningful learning and encourage LBPs to focus on doing activities that are relevant to their licence class and area of practice. It is designed to focus on key areas of learning, which LBPs can effectively apply to their line of work. 6. ELECTIVE ACTIVITIES The elective part of the new scheme remains largely the same. Each hour of relevant elective activity equals 1 LBP point. The only change is that the minimum number of points required has now been reduced by half. The elective part of the new scheme remains largely the same. Each hour of relevant elective activity, such as reading Under Construction, equals 1 LBP point 3 FEEDBACK NEWS BUILDERS' BUSINESS COMMUNITY FOCUS Do you carry out exempt work? Rallying for a true blue cause Builders’ Business is a column by builders for builders. Its objective is to provide a forum, particularly for small business operators, in which to share knowledge, experience, tips and ideas Q: Do you carry out exempt work under Schedule 1? What are the pros and cons? Firm: Ohlson & Whitelaw Ltd Principal: Craig Ohlson Location: Whitianga Staff: 10 We don’t do a lot of the exempt work under Schedule 1. It does have a number of benefits, though, including that building owners can look after their properties, including any repairs or maintenance, without having to get a building consent. Anyone is able to perform work under Schedule 1 exemptions, so it’s difficult to ensure that the work actually complies with the Building Code Also, not having to deal with councils, or the extra cost of plans and permits, is an advantage, particularly in cases where they would be greater than the cost of the actual building work. On the downside, anyone is able to perform work under Schedule 1 exemptions, so it’s difficult to ensure that the work actually complies with the Building Code. Firm: Mudge Builders Principal: David Mudge Location: Wellington Staff: 2 Firm: Leader Homes Ltd Principal: Kevin Neil Location: East Auckland Staff: 8 Everyone does at one or stage or another. To me, a major negative is that it creates a loophole, so that work can be deemed as maintenance and therefore not require a consent, when it probably should. Bathroom upgrades are an example: waterproofing and changing internal linings need a consent, but people could classify it as maintenance and avoid getting one. Having exemptions is a good start, but I think what is included needs to be looked at more closely by a working committee. Personally, I feel that there is currently a lot of room for manipulation and that DIYers have too much scope to tackle jobs around the home. Self-certification is also pretty topical at the moment, but there have been too many examples of poor work shown up in the media recently to make it practical, because it throws a cloud over all builders in some people’s eyes. Even though the current system isn’t perfect, it’s the one we have and is more thorough than self-certification. We do some repairs and maintenance work under it, and occasionally other work too. While I support the idea of exemptions under Schedule 1, I think it needs to be clearer about what is and isn’t included. For example, if you were performing repairs or maintenance on a wall where 50% needs to be replaced, and you’re using the same materials, at what point does that become a recladding job, which requires a consent? PlaceMakers staff and customers across the country raise over $200,000 for prostate cancer S ubtlety went out the window for this year’s Blue September campaign, with a clear message to ‘man up and give prostate cancer the finger’! Thanks to the efforts of PlaceMakers staff and the generosity of PlaceMakers customers, the country’s leading trade merchant donated more than $200,000 to the Prostate Cancer Foundation. At the moment, it isn’t very well explained. It can also cause confusion for customers, who might think they don’t need a consent and wonder why you’re asking them to pay for one. “Prostate Cancer is the most common cancer in New Zealand men, killing around 600 fathers, sons, brothers, husbands and friends each year,” says chief executive Graeme Woodside. I think the most important thing for both contractors and customers is to make sure that if they are unsure whether or not work is exempt, they should go and have a conversation with their council. “The effects of the disease are confronting, so we decided our message should be as well. ‘Give prostate cancer the finger’ seeks to directly address the inhibitions men have to having a digital rectal examination (or DRE) – the physical examination required to check for prostate abnormalities.” Graeme says key supporters such as PlaceMakers have embraced the concept and are doing all they can to communicate the message and raise money for the foundation, which promotes awareness of the disease, supports those diagnosed, and helps fund research on diagnosis and treatment options. Increasing awareness is a key focus for the foundation, as early detection leads to better outcomes. “For the seventh year in a row, PlaceMakers has played a key part in our annual awareness campaign,” says Graeme. “I’d like to say a massive thank you to staff and customers for supporting the cause around the country. From quiz nights, to scooter challenges, to BBQs, the types of events vary dramatically, but the support is consistent. “It’s incredible to see how many of our builders come out to these events,” says Gary Woodhouse, PlaceMakers general manager operations and marketing. “Their commitment is admirable. As well as supporting such a good cause, it helps strengthen a sense of community and the support inherent within that. “We strongly encourage all men over 40 – employees and customers alike – to get checked!” You might not agree with what they say, but because of how liability is dealt with now, you really need to make sure you’ve got it right! Now have your say... WHAT INDUSTRY CHANGES DO YOU HOPE TO SEE IN 2016? ANSWER THIS QUESTION TO ENTER OUR QUARTERLY PRIZE DRAW Email your answer with your full name, contact phone number, company name, number of full-time staff and the city or town in which you’re based to [email protected]. All responses must be submitted by 25 December. The answers to this question will be published in Under Construction February 2016. 4 PlaceMakers Pakuranga staff had a busy Blue September decorating the store, hosting a morning tea and planning a battle of the BBQs. Overall the team raised more than $8,000! The PlaceMakers Wairau Park team put their hair on the line to raise money for Blue September PlaceMakers Clarence Street employees held a number of Blue September events, including a dress-up day and ‘Shoot the Boss’ opportunity! 5 NEWS COMMUNITY FOCUS Building a better future who benefit from better educated teachers, and their communities.” They recently returned from another trip, where they spent time teaching locals how to install roofs on earthbag structures. Earthbags provide a cheap, earthquake-resistant building technique particularly in Nepal where the people are renowned for their friendliness. “Volunteers bring phenomenal motivation to community projects and, when the locals see people from all across the globe working to help them, it can act as a catalyst to further motivate them to rebuild,” she says. “In addition, our accommodation is normally communal spaces shared with the other volunteers. You make a lot of friends and, at the end of it, they almost become like your family.” Volunteering your building skills can leave a lasting legacy Builders’ skills in hot demand to help improve quality of life for Nepalese families M ore than 9,000 people were killed and hundreds of thousands left without homes, following two devastating earthquakes in Nepal earlier this year. Having developed a connection with the country after various trips to Mt Everest basecamp, PlaceMakers Wanaka customer Mark Ayre wanted to do something to help. Mark and New Zealand-based Adventure Consultants, which operates climbing expeditions in Nepal, came up with the idea of exporting Kiwi builders to the quake-stricken country to help with the recovery process. The first step was to connect with All Hands Volunteers, an American6 based non-profit organisation working to rebuild homes and schools. All Hands are involved in a number of projects, including reconstructing five schools in the Nuwakot district and 50 homes in the Sindhupalchok district. ALL HANDS ON DECK All Hands partnerships manager Michelle Thompson says that more than 600 volunteers have offered their services since work began in April. “Our focus as an organisation is to connect people who want to help, and remove the barriers to volunteering,” explains Michelle. “We cover all of their living costs while they’re working here; they just need to pay for their own flights.” To ensure each job is completed as efficiently as possible, the organisation only accepts volunteers as required. “We provide some training and quite often we’ll ask our volunteers to lead teams, which can be made up of locals and other volunteers. At the moment, people with experience in construction and project management are in high demand.” She says people can choose to help for as long as they like, with their placement depending on what stage a project is at and their relevant experience. “Anyone interested in volunteering just needs to jump on our website and fill in an application form. We send them an info pack, which advises them about visas, vaccines, and what they should bring, as well other important information. “At the moment, the days are really warm, but it can be quite cold in the morning and at night.” Teams generally work six days a week, using materials such as wire mesh and corrugated iron to build homes and schools. INVESTING IN EDUCATION Because of the poverty that affects Nepal, education is critical to help the country’s young people create a better future for themselves. EXPERIENCE OF A LIFETIME Michelle says that volunteering is a hugely rewarding experience, Someone who knows that first-hand is Cam Court, a PlaceMakers customer and director of Auckland-based building company Court Construction. Cam and his wife Tracey developed an affinity with the Nepalese during trekking trips through the country, which has led them to get involved in a number of community initiatives. Michelle says that volunteering is a hugely rewarding experience, particularly in Nepal where the people are renowned for their friendliness “We just gravitated towards the country,” Cam says. “Despite having nothing, it has some of the most amazingly friendly and generous people we’ve ever met.” Last year, the couple teamed up with First Steps Himalaya – a New Zealand-based charity working to give Himalayan children access to quality schooling – to raise money for an education and training centre. Together with 11 other volunteers, including seven of their own builders, Cam and Tracey went back to Nepal in March to build the centre. “At the moment, lack of education results in a cycle of poverty with poorly educated children, growing up to become parents who know no other way,” says Cam. “We hope this type of project will help transform the lives of the children Earthbags (literally bags filled with earth) are commonly used in Nepal and are well suited to community projects, because they’re earthquake resistant and this unique, eco-friendly method of construction can be created quickly from readily available components at a low cost. TOP TIPS Cam says that anyone going should be prepared to live in tough conditions, and also has some practical advice for any builders keen to help. “You can source some materials locally, such as timber and iron, but you can’t really buy fixings,” he says. “We’ve taken our own tech screws and nails both times. There’s no power, so we also took our own saws – you have to do everything by hand.” Unless you like cold showers every day, he also recommends taking a solar shower! About All Hands In its tenth year, All Hands has completed 57 projects worldwide, with over 31,000 volunteers of 85 different nationalities, 40,000 families assisted, and 1,000,000 hours worked. In the process, we have developed an expertise in both project and volunteer management. Anyone interested in lending a hand should visit All Hands’ website at http://hands.org/volunteer/, and select the Nepal Earthquake Rebuild project. 7 NEWS PRODUCT NEWS New brochure in-store now Paving perfection With our laundry tubs built in New Zealand, our tapware tested and assembled here too, you can have peace of mind that our products on your next project have a Kiwi company backing them SALUTO LATINO KLENSSA PLUS The simple, compatible paving dimensions mean your client can easily create expressive and unique patterns Firth Designer Series pavers created for easy installation and a high-end outdoor transformation T he basic function of residential pavements, such as driveways, paths and patios, is to provide safe, easy access onto or around a property. However, Firth’s new Designer Series premium paving range offers more than access – its larger format and lighter colours reflect the global trend in residential paving, adding style and visual appeal to outdoor areas. This new, affordably priced range will excite homeowners looking for an exceptional, high-end tile-look finish backed by tried-and-trusted Firth concrete durability. The simple, compatible paving dimensions and consistent 50mm depths allow your client to easily create expressive and unique patterns for paths, patios and other outdoor living spaces. Improved density ensures smoother, more compact surfaces, while new spacer nibs on the sides reduce spalling and support even spacing. See the new brochure in-store or online for a full range of colours and designs. Available to order now. 8 pavers, blend from various pallets to mitigate any colour variation that may occur. To get the best results when paving, here are some top tips to keep in mind: • • Ensure surface water is directed away from buildings. • All pavers require some form of edge restraint, kerb or haunching to prevent lateral movement. • It is best to use darker colours for driveways as tyre marks will not be as visible. • Consider sealing your paving to help prevent the absorption of dirt and stains. A good sound basecourse is critical for the long term performance of paving. • Keep the surface of the pavers clean whilst laying. • Firth concrete pavers are made from locally sourced, natural materials. When laying more than one pallet of RAYMOR LE6200 MAX 7587996 BUILT IN NEW ZEALAND Firth’s new Designer Series premium paving range comes in three versatile sizes and light, contemporary colour RAYMOR LE6200 SLIM 7587995 BUILT IN NEW ZEALAND RAYMOR LE6200 7587994 BUILT IN NEW ZEALAND REGULATION MBIE BUILDING & HOUSING Using Schedule 1 exemptions retaining wall, is still relatively complex. EXISTING BUILDINGS: ADDITIONS AND ALTERATIONS WHAT’S INCLUDED? Below are the general headings in 8. Windows and exterior doorways in Schedule 1’s list of exempt work. If existing dwellings and outbuildings you’re doing any work in the areas listed below, check the full guidance to 9. Alteration to existing entrance see if it is exempt or not. Some of it is or internal doorway to facilitate tricky to decipher so, if you’re unsure, it’s access for persons with disabilities important to get advice from someone with the appropriate building knowledge 10. Interior alterations to existing and expertise, such as your local council. non-residential building Just because building work is exempt doesn’t mean the work doesn’t require skill, it just means it doesn’t require a consent 11. Internal walls and doorways in existing building 12. Internal linings and finishes in existing dwelling 13. Thermal insulation GENERAL 14. Penetrations 1. General repair, maintenance, and replacement 15. Closing in existing veranda or patio 2. Territorial and regional authority discretionary exemptions 16. Awnings 23. Tanks and pools (excluding swimming pools) 24. Decks, platforms, bridges, boardwalks, etc 25. Signs 26. Height-restriction gantries 27. Temporary storage stacks 28. Private household playground equipment Network utility operators or other similar organisations 29. Certain structures owned or controlled by network utility operators or other similar organisations DEMOLITION 30. Demolition of detached building According to Schedule 1, a building consent is not required for work on decks, platforms, bridges, boardwalks and like structures where it is not possible to fall more than 1.5 metres Have you been getting consents for low-risk jobs that don’t require them? MBIE reminds builders to use the expanded list of Schedule 1 exemptions where possible P assed in November 2013, the Building Amendment Act 2013 expanded the range of work not requiring a building consent. However, despite the list of minor low-risk jobs expanding twice in the past two years, the Rules Reduction Taskforce recently found that it’s often misunderstood and underused. • Who can carry it out. • What other conditions apply. out by people authorised under the Plumbers, Gasfitters and Drainlayers Act, with some exceptions. The scope of building work covered by • The third part covers building Schedule 1 doesn't vary greatly from the work which has been designed or reviewed by a chartered previous version (which was amended professional engineer. in December 2010). However, it has a new numbering system and has been divided into three parts depending on EXEMPT – NOT EASY who can carry out the building work. To ensure Under Construction readers Part 1 Exempted building work lists understand what’s included, we’ve work that anyone can carry out. included a reminder for this month’s article. Exempt building work is listed However, just because building work is in Schedule 1 of the Act, which exempt doesn’t mean the work doesn’t has been split into three parts to SCHEDULE 1 require skill, it just means it doesn’t make it easier to navigate. Schedule 1 was amended with the require a consent, which should speed intent of making exemptions easier things up for the homeowner. Also, • The first part lists exempt building to use. A new section (section 42A exempt building work is not restricted work with no limitations on who of the Building Act) was added building work, so it doesn’t trigger designs or carries out the work. the LBP requirement. However, many to the Building Act to clarify: homeowners may choose to employ • The second part deals with an LBP as exempt work, such as • What type of building work is exempt from requiring exempt sanitary plumbing and designing a 1.5m-high deck with fancy a building consent. drainlaying, which must be carried balustrades or building a 2.99m-high 10 www.mbie.govt.nz 17. Porches and verandas 3. Single-storey detached buildings not exceeding 10 square metres in floor area 31. Removal of building element NOTE: All building work, whether exempted or consented, must comply with the Building Code 18. Carports Guidance 19. Shade sails 4. Unoccupied detached buildings OTHER STRUCTURES For more details about the Building Amendment Act 2013 and to read the exempt building work for yourself, go to http:// 5. Tents, marquees, and similar lightweight structures 20. Retaining walls 6. Pergolas 21. Fences and hoardings www.dbh.govt.nz/building- 7. Repair or replacement of outbuilding 22. Dams (excluding large dams) you can download a fact sheet or read key information. amendment-act-2013, where Tick the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning rather than just ‘participation’ is a key requirement of the LBP renewal process. 1) Who can carry out exempted building work? 2) Why is some building work exempt from requiring a building consent? 3) Is all general repair and maintenance exempt from consent? a) Anyone. a) Because it’s easy. b) Only LBPs. b) Because it’s considered low risk. a) No, there are exceptions that should be reviewed in the guidance document. c) c) Only homeowners. Because there aren’t enough consents to go round. b) Yes. c) No, only for houses built before 1960. NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation. 11 TECHNICAL BRANZ Bringing back the bevel Figure 3b: Erecting the wall first Figure 2: Correct fixing location Special offer on BRANZ Good Repair Guide Receive 30% off Good Repair Guide There are sixteen titles in this essential Good Repair Guide series, which are now available in electronic or hard copy format. Presented as a box set or individual titles, these Repair Figure 1: Bevel-back weatherboards were popular in the 1920 Guides are packed with easy-to-read drawings and photos. They provide useful information for the DIY homeowner and building professional with practical hands-on advice on how to repair and Bevel-back weatherboards are back in vogue, but there’s a lack of experienced installers. This has led to some poor installations, so here are the key pointers to getting it right B evel-back timber weatherboards have been used on New Zealand buildings for more than 150 years. The first boards were simply square inch-thick planks that were installed horizontally, with the upper board overlapping the lower. In the intervening years, the boards acquired the profile we see today, but in essence, they have changed very little. RETURN OF BEVEL-BACK WEATHERBOARDS As is common with many claddings, there have been periods when the bevel-back timber weatherboard was popular, like the 1920s (see Figure 1) and 1940–50s, before fading from popularity. Since the leaky building crisis, there has been a marked 12 www.branz.co.nz resurgence in the popularity of bevel-back timber weatherboards, particularly when installed over a drained and vented cavity. INEXPERIENCE LEADS TO POOR INSTALLATION This resurgence has highlighted a shortage of tradespeople experienced in bevel-back timber weatherboard installation. Recent issues with installation include: • Not effectively sealing cut ends, notches and holes in boards. • Double nailing of timber boards. • Poor-quality cutting of mitres to external corners and omitting soakers or backflashings or mitre joints opening up as a result of timber movement. • Incorrect installation sequence at internal corners. • Sealing of the board laps – this is not recommended as it restricts drainage and drying. THE CORRECT METHOD Figure 2 gives the correct fixing location. This is a single nail to each board located just above the lap. Guidance for the installation of timber weatherboards is given in E2/AS1 section 9.4 and in the following BRANZ publications: • Good Practice Guide: Timber Cladding (3rd edition) • House Building Guide (3rd edition) • Renovate: Bungalows maintain common problems in New Zealand homes. Book box set $336 + $8p&p I Books $21 + $8p&p I Book $18 Figure 3b: Interleaved corner Visit branz.nz/grg or call 0800 80 80 85 (Press2) and use promo code GRGPM (offer expires 31 December 2015. Discount excludes ebooks) Attention! Are you a building contractor who pays levy fees through a consent authority? If so, then you are entitled to a free subscription od BULID magazine from BRANZ. Simply email [email protected] to check that you meet the required criteria and get your subscription. Tick the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning rather than just ‘participation’ is a key requirement of the LBP renewal process. 4) What is NOT an issue seen recently with the installation of bevel-back weatherboards? a) Double nailing of timber boards. b) Incorrect installation sequence at internal corners. c) 5) What led to the resurgence of bevel-backed weatherboards? 6) What is the minimum required lap? (answer in diagrams) a) Fire safety rules. a) 32mm. b) The leaky building crisis. b) 16mm. c) c) Earthquake-strengthening regulations. 8mm. Horizontally installed planks, with an overlap. NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation. 13 NEWS INDUSTRY FOCUS Building consents rise despite volatility Construction Contracts Act amended Auckland and Canterbury combined account for more than 50% of new dwelling consents in September Commercial contractors and subcontractors’ retention payments to be held in trust S tatistics New Zealand’s latest data shows that 2,242 new dwellings were consented in September, including 1,781 homes and 109 apartments. Seasonally adjusted, the number of new dwellings consented fell 5.7%, following a 5.3% fall in August. For homes only, it rose 1.5% on the back of a 2.6% drop in August. Building and Housing Minister Dr Nick Smith said the new law will benefit tens of thousands of small subcontracting businesses, such as plumbers, electricians, plasterers, tilers and painters. The trend for the number of new dwellings consented is at its highest level since November 2004. Statistics New Zealand’s business indications manager Clara Eatherley said that, overall, new building consents are on the up. “While we see a bit of volatility from month to month, the overall picture recently has been growth in building consents, both on the residential and non-residential sides,” Ms Eatherley said. IN THE REGIONS In September, nine of the 16 regions consented more dwellings than in September 2014. The regions with the biggest increases were Waikato (up 158 to 320; +98%), Auckland (up 106 to 643; +20%) and Bay of Plenty (up 72 to 188; +62%). Other regions to record an increase were Gisborne, Hawke’s Bay, Northland, Southland, Taranaki and Tasman. “In the regions surrounding Auckland, growth is being driven by new houses, while in Auckland itself, apartments are also a big part of the picture,” Ms Eatherley said. Wellington (down 67 to 126; -35%), Canterbury (down 54 to 525; -9%) and Nelson (down 16 to 19; -46%) recorded the largest decreases. Manawatu14 C ommercial contractors and subcontractors across the country are set to benefit from the passage of the Construction Contracts Amendment Bill on October 30, with changes to be progressively introduced from the start of December. The trend for the number of new dwellings consented appears to be increasing across the country, except in Wellington Wanganui, Marlborough, Otago and the West Coast were the other regions to consent fewer dwellings in September compared to the same month last year. Despite the decrease, Canterbury still accounted for nearly a quarter of that national total, and, when combined with Auckland, the two regions accounted for 52% of the national total. The trend for the number of new dwellings consented is at its highest since November 2004 The trend for the number of new dwellings consented is at its highest level since December 2004 in Auckland, while it appears to have stabilised in Canterbury after falling 10% from its August 2014 peak. The trend appears to be increasing across the rest of the country except in Wellington, where it has been in a slow decline since February. The value of non-residential building work consented in September was $619 million, up $134 million (28%) compared to September 2014. CONSENT VALUES TOTAL $1.5 BILLION The total value of building work consented in September 2015 was $1.5 billion – comprising $911 million of residential work, and $619 million of non-residential work. For the year ended September 2015, compared with the September 2014 year, the value of building consents increased for: • All buildings – up $1.7bn (12%) to $16bn. • Residential buildings – up $945m (10%) to $10bn. • Non-residential buildings – up $755m (15%) to $5.7bn. “It will require that retentions money, which could previously be put at risk by the main contractor and used as working capital, be held in trust and given priority in the event of a business failure,” Dr Smith said. “It means the people who do the bulk of the physical work on building projects get properly paid for their labour.” The issue of retention money being misspent was highlighted by the collapse of construction company Mainzeal in 2013, which saw various subcontractors lose an estimated $18 million. The changes only apply to commercial construction contracts entered into or renewed on or after 31 March, 2017. It’s important to note that varying a contract does not constitute a renewal. Parties holding retention monies must also keep proper accounts that correctly record all dealings and transactions in relation to the money. Yet to be developed regulations will specify a list of acceptable accounting methods. RESIDENTIAL IMPACT The new Act was also updated to cover residential construction contracts, with the exception of charging orders (and retentions, which only apply to commercial construction contracts). This gives parties to residential contracts full equal access to the Act’s dispute resolution and payment regimes, which has also been amended, from 1 December 2015. Changes to adjudication and enforcement, around timeframes and prescribed forms, also come into effect from 1 December. The scope of the Act has also been widened to include construction-related services, such as work done by architects, engineers and quantity surveyors. From 1 September 2016, these professions will also be able to access the payment and dispute resolution processes in the Act. “Meanwhile, consumers will have greater means to hold architects, engineers, and quantity surveyors to account for their work,” said Dr Smith. “New Zealand is on the cusp of a building boom, which is projected to reach unprecedented levels in the next few years. This new construction law is about underpinning this strong growth with improved standards of business and building practice.” Government to review urban planning rules The Productivity Commission will undertake a first principles review of the urban planning rules, with its findings expected to be released late next year F inance Minister Bill English says the Government has asked the Productivity Commission to review urban planning rules and processes, and identify the most appropriate system for land use allocation. The Productivity Commission will undertake a first principles review of the urban planning rules that fall under acts such as the Local Government Act, the Resource Management Act, and the Land Transport Management Act, to ensure they support a responsive housing market. “Urban planning in New Zealand not only underpins housing affordability, but also the productivity of the wider “The review should look to consider economy,” Mr English said. “Many alternative ways of delivering improved parts of the regime are out-dated and urban planning and, subsequently, unwieldy, having been developed development,” the terms say. over the years in a piecemeal fashion. International best practice has moved on, On TV One’s Q+A, Mr English said and so must New Zealand.” that the Government has asked the Productivity Commission to do some “blue-sky thinking”, but that over the next three to four years, it needs to make the current system work. “There are homebuyers out there, who would prefer to be able to buy a home today. The Government is shelling out tens of millions more to subsidise accommodation costs in the high-growth markets, and we’ve got to keep working with councils to get the number of houses on the ground up faster.” The Government’s proposed RMA reform was put on hold earlier this year. 15 HEALTH&SAFETY WORKSAFE Managing overlapping duties This means that in practice, the measures a PCBU should take in relation to its own employees and contractors are likely to be different from the measures it should take in relation to the employees and contractors of another PCBU, as it will have less influence and control over the workers of another PCBU. The extent of a PCBU’s duty depends on the level of influence and control the PCBU has over health and safety matters at work, and the different circumstances that might be at play when there are multiple PCBUs A PCBU that has less direct control and influence is more likely to fulfill its duty by making an arrangement with the PCBU that is closer to the work and has more direct influence and control. Many modern work situations involve multiple duty holders with overlapping duties With the Health and Safety at Work Act coming into effect in April next year, it’s important you understand your responsibilities under the new laws. In this two-part series, we’ll examine who is responsible when two or more PCBUs duties overlap B ecause a person conducting a business or undertaking (PCBU) has duties to all workers affected by their work, not just to those they employ, it’s possible for PCBUs to have overlapping duties. This is a fundamental part of the Act’s design. Many modern work situations involve multiple duty holders with overlapping duties. For example, there may be a number of different businesses working together or alongside each other on a single work site, such as a construction site, and through contracting or supply chains. The previous Act created and provided 16 www.worksafe.govt.nz for such overlapping duties, so the need for duty holders to work together to meet their duties is not new – it’s just more explicit in the new Act, and many workplaces will already be taking this approach. and coordinate activities to meet their shared responsibilities. The Act also makes it clear that PCBUs need to collaborate to meet their duties and ensure that the work does not place people’s health and safety at risk. PCBUs cannot ‘contract out’ of their duty. However, they can and should make reasonable arrangements and coordinate responsibilities with the other PCBUs to fulfill their duty – so far as is reasonably practicable. The PCBUs should also monitor each other to ensure everyone is doing what was agreed. HOW SHOULD PCBUS WORK TOGETHER? Overlapping duties do not automatically require PCBUs to duplicate efforts. Instead, PCBUs will need to consult, cooperate, The extent of a PCBU’s duty depends on the level of influence and control the PCBU has over health and safety matters at work, and the different circumstances that might be at play when there are multiple PCBUs. EXAMPLE 1: OVERLAPPING DUTIES IN LABOUR HIRE A labour-hire PCBU contracts out a worker to a host PCBU. Both the labour hire PCBU and the host PCBU owe a duty of care to that worker – both are fully responsible for meeting that duty to the extent to which they have capacity to influence and control the matter. The labour hire PCBU cannot ‘contract out’ its duties to that host employer when it places a worker with them. Both PCBUs need to consult and co-ordinate activities to ensure the health and safety of the labour hire worker. EXAMPLE 2: OVERLAPPING DUTIES ON A LARGE CONSTRUCTION SITE A large construction site has many PCBUs present: the head contractor, the subcontractors, and the client. While all of these PCBUs have overlapping duties, the measures that they can take to discharge those duties will differ. The client will typically owe duties to the workers that they influence or direct through any requirements they include in their contract with the principal contractor that will affect the health and safety of those workers. If a client requires that work be performed in a certain way or in a certain time, that may affect the health and safety of workers. The subcontractors will also have a duty to the workers that work for them. The head contractor and the subcontractor should consult each other about the job requirements, the skills required of the workers, any health and safety risks associated with the work, and what each will do to control the risks. Subcontractors will have a duty to each other’s workers, even where they do not have a direct contractual relationship with them. For example, the activities of a scaffolding PCBU can affect the safety of other workers on site. The PCBUs can make arrangements with the other PCBUs on the site where they have overlapping duties. In this case, the head contractor and subcontractor have to ensure access to first aid facilities. The PCBUs can make arrangements with the other PCBUs on the site where they have overlapping duties The head contractor will have a duty to the workers that work for them. The head contractor will also have a duty to the workers on the site that it influences or directs. This is because the head contractor usually determines the sequencing of work and sets work methods, equipment and other site requirements that may affect all the workers on site – even those who aren’t employed by the head contractor directly. It’s likely the head contractor will provide those facilities for all workers on site, but the subcontractor must confirm they’re in place and accessible to their own workers as well. The head contractor would also usually provide security for the site as a whole. Tick the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning rather than just ‘participation’ is a key requirement of the LBP renewal process. 7) When a labourer is contracted out, who holds the duty of care? 8) Who is usually responsible for providing security for the whole site? a) The labour hire company. a) The head contractor. b) The PCBU contracting the labourer. b) Subcontractors. c) c) Both. Individual workers. 9) How can a PCBU with little direct control or influence on health and safety fulfill its duties? a) Contract its duties out. b) Make an arrangement with a PCBU that is closer to the work. c) They won’t have any duties under the new Act. NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation. 17 TRAINING BCITO Sustaining the workforce Currently, just under 3% of BCITO’s active apprentices are women our current workforce capability, we are building 15,000 homes. In 2014, there were 155,200 people employed in the construction industry sectors covered by BCITO. By 2019, this is forecast to climb on average by almost 5% per year to 197,300. Capability and capacity of the current workforce will struggle to meet future demand do not attain a post-secondary qualification of any kind. KEY POINTS • Growth is set to continue but negative pressures in some regions exists. • Government will use policy settings to free up market conditions and stimulate some activity. • Capability and capacity of the current workforce will struggle to meet future demand. • Growing demand in Auckland may require increasing numbers of the workforce to move from locations throughout NZ. • Consideration of sustainability, as a workforce development driver, will deepen. Ambience Tiling business owners John and Janet Turner (far left and far right) are looking forward to using BCITO’s SWDF plan to strategically manage the development of their workforce. They are both pictured here with their team of recently qualified tilers BCITO launches strategy to better manage workforce development I influence and realistically change. n a bid to help construction industry businesses and employers better The SWDF identifies four priorities manage the development of their for action that can be used to help workforce, BCITO has developed participants plan and strategically a Strategic Workforce Development manage the development of Framework (SWDF). The plan was their building and construction officially launched by Dr Nick Smith workforce. These priorities are: at the BCITO Skills Summit held in Wellington in October, with more than • Build an accurate picture of the 100 BCITO national advisory group current skills and capabilities of members, board members and other key stakeholders from associated federations, each industry sector’s workforce. associations and government bodies in attendance. • Identify future requirements for each workforce and the The SWDF aims to educate the industry outcomes they wish to achieve. on preparing to meet predicted skills shortages. The industry’s • Develop strategies to address participants need to address the any gaps between the workforce and desired outcomes. factors that each employer can most 18 www.bcito.org.nz • THE CONSTRUCTION INDUSTRY WORKFORCE Consider and understand the overall impact of business strategies on workforce development. Industry needs to actively work to attract people into the industry and make sure they understand that construction offers a career – not just a job These priorities and the catalyst for developing the framework are covered below: CONSTRUCTION ACTIVITY National demand for new houses in 2017 is forecast to be 28,000. With • The average age of people in the construction industry is 42, which is increasing much faster than the rest of the population. • Increasing cultural diversity in New Zealand means strategic employers cast a wide net in respect to recruitment. • Just under 3% of BCITO’s active apprentices are women. • A project-driven ‘hire-andfire’ business cycle causes some skilled workers to leave the industry permanently. • 40% of workers in the industry • The industry’s skilled workforce is aging quickly and exiting the industry. • The industry is recruiting from a shrinking pool of people. • Greater workforce diversity is required to meet labour requirements. • The current rate of industry training does not match demand. • Skills demand will continue to develop. • Industry training needs to align with workforce development. • Industry needs to actively work to attract people into the industry and to keep them for a longer period of time and make sure that people understand that construction offers a career – not just a job. To read BCITO’s Strategic Workforce Development Framework and find out how it can assist you to build your People Plan, visit BCITO.org.nz/news-andpublications/strategy-documents. This initial document is just the first step in an ongoing process to help skills-proof our industry. In the next phase, BCITO will engage you with a sector-specific plan for your particular trade. This will happen in the first half of 2016. 19 TIPS CROWE HORWATH Buying a business parties on the final selling price, but due diligence reports provide a good starting point for negotiations. by shareholders, then this must be repaid either by the shareholder or from proceeds of the sale of the business. DO THE DUE Due diligence is all about cutting through the sales pitch and bluster. It provides a degree of certainty about what you’re buying, and what to expect once the transaction is complete. It also supports a closer working relationship between the buyer and seller throughout the negotiation period. As a result, most owners are more than happy to provide the required information for this process. Be particularly wary of anyone selling a business, who is reluctant to provide information requested for a due diligence report. This should be seen as an immediate ‘red flag’, and an indication that particular business opportunity might be best left alone. Another point regarding debts is that any shareholder loan accounts (money owed to/from the shareholder by the company) will need to be repaid, unless you come to an agreement with the seller. Usually, the amount will be incorporated into the business’ purchase price. Buying a business is a big decision – make sure you do all your due diligence before finalising the deal Business growth is an important consideration for those who aspire to ‘get off the tools’, but the days of doing deals on a handshake are long gone. This month, we focus on a couple of key points to keep in mind when buying a business I n the May issue of Under Construction, we provided information on how to grow a business, including the risks and rewards associated with acquisition. This time, we outline some of the key things to watch for and provide a general overview of what you need to know before finalising any deal. PAPERWORK, PAPERWORK, PAPERWORK Obviously, for a transaction of such a large size, it is important to work closely with your lawyer and the seller to ensure the business’ sale and purchase agreement is fully documented. It’s also particularly important to 20 www.crowehorwath.co.nz/locations document how any debts and potential issues relevant to the business will be handled. There needs to be a clear agreement in place on how defect periods and potential liabilities for works undertaken by the previous owner/s are handled. If this isn’t done properly then you, as the new business owner, could be left responsible for any outstanding bills. Furthermore, your name could potentially be tarnished by work done under the previous owner/s. When it comes to the required paperwork, consider this: no one would ever buy a house or enter into a job without a formal contract. So why would you consider buying a business without having the proper paperwork in place? KNOWN AND UNKNOWN DEBTS Any known liabilities in the business’ financial statements are still held by ‘the business’, therefore, these will need to be taken into consideration. These are debts owed by the business, not the owners. For that reason, performing due diligence in conjunction with your accountant is crucial. They can help you to identify both known and potential liabilities, and will provide a written report detailing their professional opinion of the business and its value. Usually, there will be give and take between both However, if you are buying a majority share (ie, more than 50% of the business), there may be another agreement in place – such as the previous owners loan account being paid off over time, or that the account remains in place due to their ownership interest in the company. On the other hand, if the business is owed money Due diligence is all about cutting through the sales pitch and bluster. It provides a degree of certainty about what you’re buying, and what to expect once the transaction is complete PITFALLS In our May article, we discussed the potential issues that can occur with an acquisition. Most notably: buying an underperforming business, where turnover was inflated by a one-off transaction and has systems that are incompatible with your own. These issues further reinforce the need to do your homework via the due diligence process, so that a business’ financial and general operations are fully understood. DON’T FORGET THE STAFF Another issue to be aware of is the business’ ‘culture’. While this can often be viewed as a buzzword, the fact remains that if your new employees do not work well with existing staff, then the disruptions that could cause are immense. While you cannot be sure that these issues won’t arise before buying a business, a considerable amount of time and effort can be spent trying to identify and resolve these sorts of issues if they do. Taking the time to make sure that all employees are well looked after is arguably just as important as ensuring that you keep the financial performance of the newly acquired business intact. If you have questions about how to acquire a business, or you would like to discuss any of the points raised in this article, please contact Peter van der Heijden at peter. [email protected]; or your local Crowe Horwath advisor. For example, is a key employee due to retire in the next 12 months? Is a key contract about to lapse and not be renewed? These sorts of situations need to be identified in advance, as they could have a significant impact on the longterm value and performance of a business. Having a thorough understanding of the potential of the business is critical for success. Contact For the contact details of your local office, please visit www.crowehorwath.co.nz/ locations or telephone 0800 494 569. Tick the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning rather than just ‘participation’ is a key requirement of the LBP renewal process. 10) During a sale process, who holds liabilities in a business’ financial statements? 11) What is NOT a pitfall listed in the article? a) The outgoing owner. a) A key employee leaving the business within 12 months. b) The business. b) A key contract lapsing. c) c) They’re wiped once a sale is completed. A key employee remaining to complete a key contract. 12) What should be seen as an immediate ‘red flag’? a) An owner unwilling to provide information required for a due diligence report. b) A business with a history of completing jobs behind schedule. c) A business with no debt and high turnover. NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation. 21 TIPS THE SUCCESSFUL BUILDER What makes a millionaire builder? Because owning your own business means that you need to think much further ahead than you did Not all business owners go on to become millionaires, but those who do seem to have at least one thing in common – they make the effort to plan well ahead, for at least a year Millionaires are good at planning in advance and arranging immediate tasks in light of their long-term plans Most builders I meet would love to become millionaires – and some get there. You’ve heard the expression ‘failing to plan is planning to fail’; could it be that millionaires plan better than others? I t’s not that simple, everyone plans – it’s just the time scale they plan on is different. EMPLOYEES (OFTEN) PLAN FOR A DAY Often, those who work for a boss don’t have to concern themselves too much with the business’ long-term goals – they have a plan for the day and, as long as they complete the work required, they can head home and not think any more about it. Not all employees take that approach, particularly those who are looking to move up, but usually a perk of being an employee is you’re able to concentrate solely on the task at hand. MANAGERS PLAN FOR A WEEK Things change when the employee 22 www.thesuccessfulbuilder.com becomes a manager. It’s not quite as easy to get by on daily planning, and it’s harder to avoid taking work home with you. Rather, since they are responsible for organising work for employees, managers need to be a step ahead. They need to plan at least a week in advance to ensure their employees have all the direction and resources necessary for efficient work day by day. It’s harder to plan a week ahead, and not every manager succeeds. Have you ever watched a project manager who is still acting like an employee? They spends the day fighting fires, chasing up late deliveries and subcontractors. Jobs run late. Materials run short. Subcontractors can’t turn up and variation and change orders get overlooked. Their projects run overtime and over-budget. That’s simply because they haven’t yet learnt to plan far enough ahead. Successful managers plan at least a week ahead. Then, when something goes wrong, they have time to intervene, resolve the problem and get the project back on track. Managers learn to plan further ahead, and get paid more for doing so. BUSINESS OWNERS PLAN FOR THE MONTH You might think that becoming a business owner is as simple as getting a client and working for yourself. It’s easy to start. But it’s not so easy to finish well, and a high percentage go back to working for someone else. Why? Successful business owners delegate the urgent (immediate) stuff to their team of employees and managers. They know that they need to focus on the long-term business plan. The thing about longer term planning is that it doesn’t need to be perfect. You can’t predict the future accurately, so the important part isn’t the detail, it’s the concept. And, because the important stuff is rarely urgent, the business owner (ideally) gets to take time out to watch the rugby, take the family on holiday, go fishing or even play golf! If being a millionaire is your goal, make foresight top of mind. Millionaires don’t necessarily have fewer problems or better plans than anyone else (although no doubt it would help), but they definitely think long-term. when you were an employee or a manager. If a manager thinks ahead a week, then a business owner thinks at least a month ahead. However, unlike employees and managers, business owners (especially of SMEs) rarely get to check out completely – there’s always the chance they may get a call about an urgent matter they need to deal with. Things that are urgent are put aside in favour of things that are important. Important things are the tasks that don’t need to be done today, but can be done tomorrow – eg, updating the website, or posting on Facebook. MILLIONAIRES PLAN FOR A YEAR Not all business owners go on to become millionaires, but those who do seem to have at least one thing in common – they make the effort to plan well ahead, for at least a year. However, tomorrow never comes, so business owners need to learn to identify important tasks as urgent and do them now. And then, once they have the plan in mind, they arrange their immediate tasks in light of that longer-term plan. Sure, it takes time, effort and practice to learn to do this – but it can be mastered. They value time and priorities differently. The work they do today, as a business owner, may not reap immediate rewards, but it will bring benefits next month, or the following month, or even next year. For example, pricing a job for next year today makes no difference to today’s income, but it makes a difference to future income. The lifestyle they enjoy today, grows out of the future they planned yesterday. As Warren Buffet once said, “Someone is sitting in the shade today because someone planted a tree long ago.” About The Successful Builder Graeme Owen, based in Auckland, is a builders’ business coach. Since 2006, he has helped builders get off the tools, make decent money, and free up time for family, fishing, and enjoying sports. Get his free ebook: 3 Reasons Builders Lose Money and How to Fix Them for High Profits at http://TheSuccessfulBuilder.com. Tick the correct answers below and record what you’ve learnt in the record of learning on the back page! Evidence of actual learning rather than just ‘participation’ is a key requirement of the LBP renewal process. 13) Why is delegating important for a business 14) What does the article identify as owner? a negative of being a business owner? a) It leaves more time for golf. b) It allows them to micro-manage on-site. c) It allows them to focus on the business’ long-term plan. a) It’s harder to separate your personal and work life. b) You’re your own boss. c) You get to take more time off for fishing. 15) What is identified as a common trait among millionaires? a) They plan a week in advance. b) They plan at least a year ahead. c) They all own holiday homes in the Bahamas. NB: The questions and answers in this section have been produced by the publisher and do not necessarily reflect views or opinions of the contributing organisation. 23 SPONSORSHIP SPORT NEWS Paddon’s career enters the fast lane FREE * RUGGED RUKUS Hayden Paddon and John Kennard are one step closer to achieving their goal of winning a WRC championship, after signing a three-year deal with Hyundai BLUETOOTH SPEAKER WHEN YOU PURCHASE A TEAK 5PCE DINING SETTING • IPX-4 water resistant • Play up to 8 hrs of music wirelessly • 1 yr warranty T he Kiwi rallying duo could be forgiven for thinking that Christmas has come two months early. In October, their three-year, fullchampionship contract with Hyundai was sandwiched between a fifth-place finish in France and sixth in Spain – taking them to eight top-ten finishes this season. “It's amazing to have the security of the next few years, in which time we aim to be at the top,” he said. SPANISH SHAKE UP The only mixed-surface event on the WRC calendar, Spain offered a new test for Hayden and John, but they tackled it with confidence and shook up the field by winning the pre-event shakedown. They carried that form into the opening stages, posting several top-five times, including a joint fastest with Citroen’s Mads Ostberg (Norway) on Stage 2. hindered their push for a spot in the top five. They maintained their position in seventh, tying with Belgian teammate Thierry Neuville at the end of the day. on the mixed surface, and we have certainly shown improvement on tarmac compared to this time last year.” (They finished ninth at last year’s event.) “We had an okay day in places. Had it not been for the punctures, things might have looked very different on the classification,” Hayden said. “We set some good times and, other than those issues, have shown decent improvement compared to last year.” The final round of the year, Wales Rally GB, starting 12 November, presents Hayden with a big opportunity, as he’ll take Thierry Neuville’s spot as Hyundai’s lead driver. The Kiwis finished strong, edging clear of Neuville to strengthen their hold on seventh. They were promoted into sixth after championship-winner, Sebastien Ogier (France), crashed out on the power stage. “All in all, it’s not been a bad weekend,” said Hayden. “We made a good start FOLLOW THE LEADER The team made the decision to promote Hayden to help them overhaul Citroen for second in the WRC Manufacturers’ Championship. Currently they are third, four points adrift of the French team. “It’s a rally we have good experience of and one that reminds me of rallying at home, in the middle of winter in the southern forests,” Hayden said. With no chance for a gravel test, the pair used their set-up from Rally Australia and achieved mixed results in the afternoon. They finished the day in seventh, and went into the next morning’s day tarmac stages keen to continue learning following their success in Corsica. Frustratingly, two separate punctures cost them more than 20 seconds and OUTDOOR FURNITURE NOW IN-STORE COME IN & PICK UP A CATALOGUE OR VISIT PLACEMAKERS.CO.NZ TIM POLYRATTAN OUTDOOR BER FURNITURE OU TDOO R FU RN ITU PlaceMakers OUTDOOR FURNITURE AND BBQ’SBET TER MONACO LOUNGE SET WITH STORAGE TABLE 5442319 ROM • 2000 A 3 PIEC •2 1700x 1000 E TAB mm mm LE bench rectan & $ seats gular table 59942 00 ROM REC A TAN 1600 2000 ROM 1300 mm mm 7) 13) 2) 8) 14) 3) 9) 15) 4) 10) 5) 11) 6) 12) • 4 piece lounge set • Heavy duty plastic resin in a wicker design • Waterproof storage table • Cushions included • 3 year warranty I D E TO YO U R COM PLETEOGU O UTDO R LIVIN G 1700 RE 1) KHC GUL x 900m x 1000 54490 m mm A BEN 54490 1,2 99 AR 54490 54490 TAB 26 $ 949 $ Ice cube can be purchased separately BEN CH RO MA & BEN 5 SET TIN EXCLUDED • 1500 CH PIECE •4 SET TAB 1300x 1500 TIN mm mm bench squar G LE $ seats e table G 59942 03 1,7 99 KHC LE EXCLUDED 699 27 $ 799 CH 24 $ 259 299 25 $ MERANO LOUNGE SET • 4 piece lounge set • Heavy duty plastic resin in a wicker design • Cushions included • 3 year warranty 5442324 899 $ ICE CUBE • Practical hand grips • 3 year warranty 54490 5442318 129 $ KEN HIG NED Y CHA H BAC IR K KHC EXCLUDED 22 KETER SHERWOOD CUSHION BOX 179 $ • 1170 (W) x 450 (D) x 575 (H) mm • 270L • Wood look • Keeps contents dry & ventilated • Easy assembly 5449391 KEN 9954490 $ NED Y SUN Cushions not included 33 $ 399 LOU NGE KETER ROCKWOOD CUSHION BOX Out R • 1550 (W) x 724 (D) x 644 (H) mm • 570L • Keeps contents dry & ventilated • Easy assembly doo 5449394 r Furn 349 $ itur Accessories not included. 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The future is bright for Hayden Paddon and John Kennard following a sixth-place finish at Rally Spain, with their next three years in the WRC secure courtesy of a new contract with Hyundai. Photo: Hyundai Motorsport DECEMBER 2015 FOR EASE OF RECORD KEEPING, USE THIS COUPON TO COLLATE YOUR ANSWERS FROM WITHIN THIS ISSUE OF UNDER CONSTRUCTION AND THEN SIGN AND DATE IT AS PROOF OF YOUR OWN LEARNING. 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