ISSUE 47 : FEBRUARY 2013

HOW TO AVOID HOLD UPSPG 17 - 19

BUILDING CONSENTSMISTAKES COSTING INDUSTRY DEARLY

PG 20 - 21

PRICING JOBS

BUILDING BUSINESSTHE LATEST NEWS FROM YOUR BUILDING SUPPLIES SPECIALIST

READING BUILDING BUSINESS WILL CONTRIBUTE TOWARDS

YOUR LBP SKILLS MAINTENANCE REQUIREMENT. ENSURE YOU LOG THIS IN YOUR ITM DIARY TODAY.

FEBRUARY 2013

ENTRIES OPEN FOR HOUSE OF THE YEAR

AWARDS PG 21

Southern Region Registered Master Builders 2012 House of the Year Winner New Homes over $2 millionA J Saville Builder Ltd

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LEAKY BUILDINGSTHIS ARTICLE LOOKS AT SOME OF THE CONSIDERATIONS WHEN TENDERING FOR A RE-CLADDING PROJECT. I WILL BE SHARING SOME OF THE EXPENSIVE LESSONS I HAVE LEARNT REMEDIATING HUNDREDS OF NZ HOMES.

In the current market where rates and margins are being squeezed it is even more important that we are aware of what we are getting into and that we minimise the unknowns so we can preserve our margin.

SCOPELet’s face it, the market is largely price driven so in order to try to level the playing fi eld with other builders less experienced in tendering, its important to be clear about what has and hasn’t been allowed for and why. This alerts the designer and client to things they may not have considered and that other tenders may not have included. This helps minimise variations and unknown costs blowing the budget and reduces the chances of a dispute. Clearly outlining timelines allowed for each section of the build process assists not only with internal pricing clarity, but also with extension of time claims considering the common down time that can occur on such projects as various parties document the building failures or are waiting on remediation design clarifi cations.

SITE ACCESS AND STORAGESite access and storage can be more challenging on remediation projects due to the nature of the works and the fact that the site is mature with neighbours, fences, landscaping and possibly a swimming pool. These along with the scaffolding setup, have a critical impact on site productivity and therefore a builder’s bottom line and are rarely covered in a set of contract documents.

Careful consideration of the distance at which scaffolding is set up from the building for easy removal and reinstatement of the cladding and windows as well as access points can make a

signifi cant difference to on-site effi ciency. Plan carefully when the most effective time is to erect the scaffolding if concrete nibs are to be installed or decks re-laid and waterproofed. Has time been allowed to frequently empty water from and re-tie the tarpaulins and side mesh to the scaffolding after inclement weather over the project? Will there be scaffolding changes required during the project?

CONTRACTORSThe use of contractors for parts of the project such as cladding removal not only fi xes a diffi cult to quantify cost (especially tip site unfriendly EFIS), it also means a messy and unpopular job is not being done by the site staff.

Contract documents may or may not mention the reuse of some items such as spouting, insulation or downpipes. But how practical is this with the new cavity cladding thickness and damage free storage? Are roof extensions required or thought of? Will the stormwater downpipe risers have to be moved?

WINDOWSThe new cladding thickness and weathertightness details will probably result in the windows having to be re-installed, re-jammed, with some TAs requiring the sealing and re-mitering of reused joinery. In these cases, can a 15 year durability warranty be provided or is a better long term solution to replace the windows with new ones?

Other issues that need to be considered are: • Will additional framing need to be installed for

a new cladding system?

IN THIS ISSUE

Leaky Buildings – Tendering 2-3Building Seismic Performance Consultation 3The GIB® Plasterboard System 4ITM 400 Auckland 5Hand Tools 5Dricon: Bag a Summer Tee 6Power Tools 7On the Level 8-9

Beacon – Building Warm Homes 10Adhesives 11-12Cemix 13Sika iPhone 5 Promotion 13Rebuild Right with RibRaft® 14Don’t Crack Under Pressure 15 POD Floor Systems 15Safety 16New Product – Skylite 16

How to Avoid Building Consent Hold Ups 17-19Digging Tools 19Mistakes in Pricing Jobs 20-21House of the Year Awards 21The ITM Fishing Show 22Hardware 23ITM Store Details 23ITM 400 Auckland Promotion 24

SERIES OF ARTICLES ON WEATHERTIGHT REMEDIATION

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For feedback contact: ITM Support Offi ce, PO Box 101556, Rosedale, Auckland. buildingbusiness@itm.co.nz, Ph: 09 415 2787

Written by Harry Dillon

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• The need to straighten an existing structure to meet any new cladding warranty requirements is diffi cult to determine pre-start.

• Non-compliant work discovered during remediation is commonplace. How has this been allowed for?

THIS IS NO STANDARD JOBPreliminary and general costs are often signifi cantly higher than on standard projects. The additional paperwork, supervision, liaising with the various experts (both the client’s and potential defendants) and the collection of detailed information on the cost breakdown of each of the building points of failure can take signifi cant time and therefore money.

Due to the nature of the works, ‘making good’ can be a major potential cost and cause of dispute. This can be reduced with a thoroughly documented pre-start survey. Whether the client is staying during the works can have a considerable impact on the project in many ways, which we will investigate in future articles. In this instance cleaning the affected areas every day because a client is living there can accrue a signifi cant cost. What is the client’s expectation regarding a third party warranty and can it be provided?

If a builder allows for all of the above, will they get the job if other tenderers have not made these considerations? And if these costs are going to be incurred by the builder, do they really want the job?

BUILDING SEISMIC PERFORMANCE CONSULTATION

The author: Harry Dillon has been involved with the repair of more than 300 homes as a builder over the last ten years. This article represents Harry’s views which may not necessarily be same as the Ministries.

COMING UP IN APRIL

The next article will be about managing your risks from a legal standpoint and will be written by Geoff Hardy from Madison Hardy Lawyers.

THE MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT IS CURRENTLY CONSULTING ON PROPOSED CHANGES TO THE SYSTEM FOR DEALING WITH EARTHQUAKE-PRONE BUILDINGS

The proposals in the Building Seismic Performance document set out a consistent national approach for dealing with buildings that are earthquake prone.

An earthquake-prone building is defi ned in the Building Act 2004 as being likely to collapse in a moderate earthquake. A moderate earthquake is defi ned in the Act as being one third as strong as what a new building at the same site would be designed to withstand. This has become shorthanded over time to 33% of New Building Standard, or NBS. This defi nition would not change under these proposals.

Essentially, the proposals would require all non-residential and multi-storey, multi-unit residential buildings (buildings that are two or more storeys high AND have three or more household units) would need to have a seismic capacity assessment done within fi ve years of the law change taking effect. Other domestic buildings (including single storey dwellings) are not covered. Owners of buildings identifi ed as earthquake-prone would then have up to 10 years to strengthen or demolish these buildings.

Public information meetings will be held during February 2013. The consultation runs until 5pm, Friday 8 March 2013. To have your say, please read the consultation document, Building Seismic Performance and complete the online questionnaire before the closing date. The consultation documents can be viewed online at www.dbh.govt.nz/current-consultations

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USING THE COMPLETE SYSTEM GETS THE BEST RESULTSGIB® COMPOUNDS, TRIMS, ADHESIVES AND FASTENERS ARE AN INTEGRAL PART OF GIB® PLASTERBOARD SYSTEMS. TO CREATE A QUALITY, SMOOTH WALL FINISH THE WHOLE LINING SYSTEM NEEDS TO WORK WELL TOGETHER.

With the wide range available, you can select the right GIB® plasterboard system for the right application to help you:

• Protect wet areas from steam and moisture damage

• Reduce noise inside your customer’s home

• Achieve a superior quality wall and ceiling interior fi nish

• Provide resistance to wind and earthquake forces and more.

The adhesive strength, fi ller performance and fi nal surface fi nish from GIB® Compounds play an important role delivering overall system performance and in creating the fi nal fi nish for decorating.

GIB® Trims are important to provide appropriate corner protection. The GIB® range includes trims for high impact corners (e.g. GIB® Ultrafl ex®) and GIB®

Goldline™ to create straight corner fi nish lines and control joints.

GIB® jointing tape and some corner trims are bedded in with compound and are also critical in achieving the overall joint strength in a GIB® system.

The best practice for fi xing GIB® plasterboard involves the use of GIB® Screws and Adhesives. Fixing wall lining correctly has a direct infl uence on levels of fi nish, and are essential to strength and performance within GIB® Systems. The correct use of screws and adhesives will ensure that wall linings are fi xed to the substrates correctly.

As GIB® Systems are not generic, substitution of specifi ed or recommended GIB® components can compromise performance.

For more information on correct installation of these products, refer to the GIB® Site Guide. Alternatively, contact the GIB® Helpline on 0800 100 442. Our experienced technical team can provide you with all the support you need to complete your project.

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That’s the view of Mark Skaife, who as Chairman of the V8 Supercar Commission is overseeing the major revamp. Skaife is also excited by the 2013 season with the introduction of the new Car of the Future, promising more competitive racing with more passing, which he believes will prosper at Pukekohe when it hosts the ITM400 Auckland on 12-14 April.2013 also ushers in two new marques in Nissan and Mercedes to join Ford and Holden.

While the circuit needed change to comply with FIA regulations, Skaife believes the transformation, incorporating two new corners along the back straight, will improve racing. He should know. Skaife has won fi ve V8 supercar Championship titles, 88 round wins and six-time winner of the Bathurst 1000. He also

heads the Australian Driver Trainer Association and is passionate about the Pukekohe track.

“When we have fi nished, the circuit will have all the same attributes as before but it will now have three passing opportunities instead of one as before.”Work is progressing well with the old pits to be replaced, new control building and facilities used at the Hamilton street circuit. There will also be safety barriers and debris fencing erected along with resurfacing some of the track.

The changes have been funded jointly by ATEED, Counties Racing Club and V8 Supercars.

SKAIFE EXCITED BY CIRCUIT AND RACINGTHE UPGRADE AND CHANGES TO THE PUKEKOHE PARK RACEWAY WILL ENHANCE THE CIRCUIT AS WELL AS PROVIDE YEARS OF LIFE AS AN INTERNATIONAL MOTORSPORT FACILITY

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The new Nissan Car of the Future in a test run in Sydney recently.

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8

Not every builder is licensed under the Building Act 2004, and not every builder needs to be licensed. The Act only requires the restricted building work on a residential project to be carried out or supervised by a licensed building practitioner. Technically, all the carpentry work on a residential project can be done by unlicensed builders, as long as a licensed builder supervises it.

It is the licensed builder who provides the “record of work” at the end of the project. This states which licensed building practitioners did what. And if he was the only licensed builder, then it will state that

he carried out or supervised all the carpentry. The question is, is it safe to do so? And the answer is – yes, if you have confi dence in the people who did the work, and/or you supervised it carefully. On the other hand, if you can’t vouch for the people who did the work, and/or you didn’t closely supervise them, then you have every reason to worry.

MANAGING THE RISKIf you employ a bunch of carpenters and apprentices (or they work for you as independent contractors) and you are actively involved on the site, then the risk is easier for you to manage. But there are two common situations where you can’t easily manage the risk. The fi rst is where an unlicensed builder

offers to pay you a fee in return for you signing off the work on his project. The second is where you work for a group home company and they have engaged an unlicensed builder to build one of their houses, on the basis that you (as a licensed builder) will sign it off. I have already come across both of those situations. Here are the reasons why they aren’t a good idea.

The starting point is that becoming licensed isn’t supposed to expose you to any greater liability than you had before. That is because a builder was always liable for defective workmanship, even before licensing came along. And that is true even if the builder is an employee. Everyone who does negligent work is potentially liable for it, no matter who they are. It’s just that people don’t typically sue employees when they can sue the employer instead. Employers are automatically liable for their employees’ workmanship, and the employer typically doesn’t pass the liability onto the employee, unless the employee was particularly reckless.

However there are a few exceptions to the general rule that licensing doesn’t increase your potential exposure. First, you are now subject to being disciplined by the Building Practitioners Board. Secondly, over time the standards expected of licensed builders will gradually increase. Thirdly, the reluctance to sue employees won’t apply, if the employee was licensed, and was signing off the work. So that does put you in a riskier situation.

LICENSING SHOULD BE TAKEN SERIOUSLYThe licensing regime is not just a rubber-stamping exercise - it is a quality assurance regime designed to ensure that building work is done or closely supervised by individuals who have proven they have the required expertise. So you can’t just pay lip

ON THE LEVEL

If you can’t vouch for the people who did the work, and/or you didn’t closely supervise them, then you have every reason to worry

A REGULAR COLUMN BY GEOFF HARDY A COMMERCIAL LAWYER

SHOULD YOU SIGN OFF AN UNLICENSED BUILDER’S WORK?

9

Geoff Hardy has 37 years’ experience as a commercial lawyer and is the senior lawyer in the Auckland fi rm “Madison Hardy”. He guarantees personal attention to new clients at competitive rates. His phone number is (09) 379 0700, fax (09) 379 0504, and e-mail geoff@madisonhardy.com. This article is not intended to be relied upon as legal advice.

service to it, or rely on loopholes to get around it. A superfi cial attempt at compliance is going to be found out, and heavily punished.

The fact that you are signing off the work means that you are required to supervise it thoroughly. To do that diligently, you would need to carefully inspect the work on a continuous basis. In reality, if you are “hiring out” your licence number, or you are a head offi ce employee who doesn’t spend much time on site, then your work commitments are going to prevent you from doing that. So to avoid liability, you will be gambling that nothing will go wrong, and you will be relying on insurance.

INSURANCE HAS ITS LIMITATIONSIf there is insurance (such as errors & omissions cover, or a directors & offi cers policy) the insurance policy will contain all sorts of exclusions and limitations. You won’t know what those exclusions and limitations are, until someone like me goes through it line-by-line for you. And what I will tell you is that in the very situations where you are relying on the insurance cover to protect you, you probably have no protection at all.

But it gets worse. These days, these insurance policies are all “claims made” policies. That means the policy has to be in force at the time the claim is made against you by the homeowner. And a homeowner has 10 years in which to bring a claim for defective workmanship - which is typically how long it takes for latent defects to emerge. Therefore, you need to ensure the policy is renewed, and the premium paid, for 10 years after the last project you signed off. If you are self-employed, then this is going to be a big expense in your retirement. And if you are employed and your employer goes out of business in the meantime, they won’t be able to keep the policy going. Or if you have a falling-out with them, they won’t want to include you in their cover any more. So you are at their mercy.

There are some possible solutions. Your employer may be able to buy a policy that covers you without exceptions for the next 10 years (although that is highly unlikely). Alternatively you could get an indemnity from the directors of the company, so that they personally guarantee to reimburse you for any liability (which is equally unlikely). There is only one sensible solution, in reality. Don’t sign off an unlicensed builder’s work, unless you have the utmost faith in his workmanship, and/or you supervised it carefully, 24/7.

In the very situations where you are relying on the insurance cover to protect you, you probably have no protection at all

10

WHY IS INSULATION SO IMPORTANT? Without insulation, heat escapes from a home’s roof (42%), fl oor (10%), and walls (24%). Insulation maintains an even temperature in a home, by stopping heat loss in winter and stopping heat coming inside in summer. It means that heaters will warm the home much more effi ciently. Heating a home without insulating is like driving around in a convertible car with the heater on full … and a rip in the roof. As hard as the heater works, the air will escape out the hole in the roof!

A well-insulated home is a warmer home. And this is important because living in cold indoor environments is increasingly being linked to poor health. New Zealand research has shown that internal air temperatures below 12°C can have a signifi cantly detrimental impact on health. And it’s not just a matter of warmth. Cold air holds far less moisture than warm air. In cold temperatures the moisture naturally in the air settles on cold surfaces such as un-insulated walls, ceilings and windows as condensation. Condensation and cold are the perfect conditions for growing mould which, with its tiny spores, is at the root of many respiratory illnesses and asthma as well as some forms of gastroenteritis. The Insulation, Housing and Health study found every dollar spent on insulation saves four times as much in health costs, in addition to the energy conserved in home heating.

WITH INSULATION, MORE IS BETTERThe thermal envelope is the insulation barrier between the heated and unheated spaces which protects the inside of the home from the outside climate. An ideal thermal envelope is continuous with no gaps and minimum weak points (such as windows, doors, skylights, ceiling fans, down lights and chimneys). For best thermal performance, you need to insulate the ceiling, under the fl oor AND the walls.

Insulation generally works by trapping air (the most effective method) and/or refl ecting heat. The ‘R value’ measures how good the insulation material is at containing heat. The higher the R value, the better insulated the home will be. While the Building Code advises the minimum insulation levels required, these are a minimum only. It’s strongly recommended that you exceed these standards to achieve optimum

results for your clients, both in better warmth and comfort, and in reducing their energy bills.

ABOUT BEACON PATHWAYBeacon Pathway is an Incorporated Society committed to transforming New Zealand’s homes and neighbourhoods through research and demonstration projects that show how to make homes more resource effi cient, healthier to live in, adaptable, resilient and affordable.

BUILDING WARM HOMES: INSULATE, INSULATE, INSULATE!By Verney Ryan, Beacon Pathway

ONE OF THE MOST BASIC STEPS IN BUILDING A WARM HOME FOR YOUR CLIENTS IS INSULATION – THE MORE THE BETTER!

11

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CEMENT

14

Firth Industries RibRaft® EQ fl ooring system has been designed to comply with the seismic specifi cations of the Department of Building and Housing’s approved fl ooring solutions for the Christchurch rebuild. It is an enhanced version of Firth’s original RibRaft® fl oor.

FURTHER DEVELOPMENT OF THE RIBRAFT® EQ SYSTEMThe demand for Firth’s RibRaft® EQ system – suitable for Technical Category 2 (TC2) land categories – has been extraordinary. With much of Christchurch’s land classifi ed as TC3 post the earthquakes, and the cost to either repair or rebuild the foundations for existing or new homes almost prohibitive, Firth has been further developing the RibRaft® EQ system.

“We have modifi ed this successful formula to create an even stronger, more secure fl oor to deal with TC3 ground conditions because we want Christchurch residents to have confi dence in the foundations of their new homes,” says Jon Hambling, National Technical Manager for Firth. “One of the options engineers have for properties zoned as TC3 is piling. Piles are required to be up to 20m down, but this option is extremely expensive and won’t always cope with the lateral spread caused in some events.”

TC3 ZONE REQUIREMENTSThe guidelines for this zone require that, following a settlement causing event, houses must be able to be re-levelled quickly and reoccupied within four weeks. This requirement has dropped many properties into the ‘too hard or expensive basket’. Firth’s RibRaft® TC3 system comprises of upper and lower slabs that can be jacked apart following an earthquake event that causes settlement, allowing the house to be re-levelled quickly and easily.

RIBRAFT® TC3 DEMOThis demonstration shows a slab that was loaded with concrete bricks to simulate the actual weight of a standard house. 25 people from various agencies, Canterbury Earthquake Recovery Authority (CERA), councils and insurance companies were all on hand to view the display.

REBUILD RIGHT WITH RIBRAFT®

REBUILDING FOUNDATIONS IN CHRISTCHURCH’S TC3 CLASSIFIED LAND NO LONGER IN THE ‘TOO HARD BASKET’

WHAT EXACTLY IS TC3?Technical Categories (TC1, 2 and 3) are a classifi cation developed by the Department of Building & Housing (DBH) to describe how the land is expected to perform in future earthquakes. They are part of the guidance provided by DBH regarding engineering options for new or repaired residential foundations in Canterbury.

See the Canterbury Earthquake Recovery Authority website www.cera.govt.nz for detailed information about technical categories and what they mean.

For more information on Firth’s RibRaft® Floor System go to www.fi rth.co.nz or contact Firth at info@fi rth.co.nz or 0800 800 576.

15

Expol Tuff Pods are a component used to create 100mm concrete ribs throughout the fl oor, providing additional strength and superior insulating qualities.

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Expol also supplies spacers to align the Tuff Pods, and bar chairs for mesh support.

POD FLOOR SYSTEMSEXPOL MANUFACTURES POLYSTYRENE TUFF PODS SUITABLE FOR ALL RAFT / FLOATING FLOOR SLAB SYSTEMS

Product Options & Sizes

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17

Around 75% of building consent applications get held up at some point in the process for common reasons, according to a recent survey.

Talk to any council up and down the country and you’ll get the same story, like a record stuck in a groove: Lack of detail, detail, detail.

LACK OF DETAIL“The main reason why building consents are suspended is that the designers simply don’t provide the information we request at the beginning,” saysNeil McLeod of Dunedin City Council.

“Around 80% of applications that come in the door get at least one RFI (request for further information). The other 20% sail through, and it’s usually the same guys,” says Bill East from Malborough District Council.

Another reason for delays is even more basic: Building consent application forms and certifi cate of design forms haven’t been fi lled in correctly or are incomplete.

POOR QUALITY PLANSEvery council contacted by ITM singled out poor plans and documentation as being the biggest factor in consent delays.

Whether the designer is an architectural draughtsman or a registered architect apparently makes little difference to the quality of plans.

One BCA manager commented: “Quite often, you’ll get a home building company that employs a designer, not a registered architect, and he’ll provide brilliant plans. Then you’ll get an architect with all these letters after his name and the plans are terrible.”

“The successful group housing companies have got their act together. They have it down pat. They know

that if they can get it in and out quickly, they’ve got themselves a job. The least time spent mucking around with us, the better off they are.”

Another bugbear mentioned by many BCA’s is the use of generic specifi cations.

“Specifi cations are instructions to build and must be specifi c to the project with materials and systems that relate to that project,” commented one council representative.

“We often get screeds and screeds of generic specifi cations and unnecessary information and it just wastes time.”

RESOURCE CONSENT DELAYSAnother major cause of delays is failing to do due diligence regarding resource consent requirements.

Neil McLeod explains: “Previously, the building act used to allow for something called a PIM (Project Information

“The main reason why building consents are suspended is that the designers simply don’t provide the information we request at the beginning.”

TOP TIPS AND ADVICE FROM THE COUNCILS

HOW TO AVOID BUILDING CONSENT HOLD UPS

18

Memorandum) which meant applicants would apply for a PIM and get all of the information they needed to design a building for that particular site.

“But the Act changed in 2004 and nowadays, very few people apply for a PIM. They fi nalise their design, put in their building application, and then discover, ‘oh bugger, I’m building over a sewer, or I’m in the side yard and I’m not allowed to do that unless I get my neighbour’s permission.’”

Another BCA spokesman commented: “It’s putting the cart before the horse. If the designer is up with the play, then resource consent delays can easily be avoided.”

WEATHERTIGHTNESSDespite all the publicity in recent years about leaky homes, BCAs say that many designers are still not paying adequate attention to weathertightness and many plans lack fl ashing details.

“We still fi nd the odd application that comes in where they have fl ashings around the wrong way,” says Neil McLeod.

“The courts have made councils the default insurers for building problems with homes. Often, the councils are the only party when there’s an issue, and we often get lumbered with paying for 100% of the remedy although we might have been responsible for only a small portion of the problem.”

“If we’re going to be made responsible by the courts, then we are going to spend more time making sure the consent application is correct in every detail.”

CHANGING THE GOALPOSTSBCAs also site the ever-changing regulatory landscape as an issue that creates hold-ups.

“Things are always changing with new regulations, new materials and new ways of doing things, and frankly we struggle to keep up,” said one building inspector.

“We get to go to regular seminars to update us on these things, but the designers and the builders can’t afford to. The fees for the seminars are high, then there’s the time off to attend, and it all adds up.

“So the only way they get to hear about these things is when they submit a consent and we say hey, the rules for this have changed. You can’t do it this way anymore, you have to do it this way.”

SIMPLE SOLUTIONSMany of the BCA’s ITM surveyed said they were encouraging applicants to meet with the council face-to-face before submitting consent applications.

Neil McLeod says Dunedin City Council has recently introduced a new system that has reduced consent hold-ups signifi cantly.

“We meet with applicants when they come in and our new system is a little more interactive so it forces the designer or builder to make sure they give us all the information we require.”

Bill East concurs. “If someone wants their plans to go through with no hassles, make an appointment and bring in the plans for a face to face meeting, builder, designer and council. It makes our life easy, it makes their life easy.”

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BUILDING CONSENT

• Only work with experienced designers

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• Ask the designer about their past record

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• Make sure the building consent and

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• Make sure the specifi cations are specifi c

to the building plans application form fully

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• Make sure the consent checklist published

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• Check with the BCA to make sure their

published checklist is current.

• Get a PIM to ensure the plans comply with

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• If in doubt about whether your application

may require Resource Consent, speak to a

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“If someone wants their plans to go through with no hassles, make an appointment and bring in the plans for a face to face meeting.”

19

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TOP REASONS FOR CONSENT APPLICATION HOLD-UPS

Many BCAs carry out annual audits to identify the most common causes of delays and RFIs (requests for further information) in granting building consents. Here are some of the top contenders:

1. Failure to provide all information and documentation specifi ed on the BCA processing checklist.

2. Failure to demonstrate compliance with NZS 3604:2011/ Building Code on design and layout.

3. Smudged and unclear drawings not meeting the required standards.

4. Missing critical design calculations eg: bracing, sub-fl oor, and truss design calculations.

5. Owner details on certifi cate of title differ from owner details on the building consent application.

6. Conditions imposed by approved Resource Consents requiring changes to building consent plans and specifi cations.

7. Distances of buildings from boundaries not clearly indicated on the site plan.

8. Wind zone incorrect or not specifi ed. 9. Timber preservative treatment incorrectly

specifi ed. 10. Structural members size and/or spacing do not

comply with specifi ed NZ standard.11. Cladding/system specifi cations not provided.

12. Missing information on plumbing and drainage drawings eg location of private drainage in relation to boundaries and public drainage lines.

13. Existing and fi nished fl oor levels for proposed building alteration project not shown on elevations and sections of building consent documents.

14. Producer statements not fully completed and signed by author, or author is not on council approved list.

15. Location of smoke detectors and hot water cylinder not indicated on plans.

16. Manufacturer specifi cations and installation details missing.

17. Missing Risk Matrix information halting compliance checking of risk associated with external moisture.

18. Geotechnical reporting not provided where required.

20

Nearly a third of all homebuilding projects end up costing signifi cantly more than the original estimate submitted by the builder, putting huge stress on builder-client relationships, and in some cases, prompting expensive litigation and bankruptcy. SO WHAT’S GOING WRONG AND WHY?While industry commentators point to a wide range of factors, they generally agree on the major causes. POOR PRICING SKILLS When a builder submits plans to a merchant to get a price for materials, the plans are usually forwarded to outside estimating companies that effectively act as independent quantity surveyors. These estimates are exactly that – “an estimate” based on the plans and specifi cations provided – complete but limited to information provided and as “tagged” by the estimation company. Their estimates are then sent back to the merchant to be collated with estimates for materials the merchant may not stock eg roofi ng, windows, special doors, concrete. The builder then adds on the cost of outside trades, plumbing, electrical etc and the overall labour component. “The estimation system has proven to work perfectly well, but in recent years due to the impacts of the GFC (Global Financial Crisis), errors and subsequent fi nancial losses have become more apparent,” says Paul Waite, business partner for Tumu ITM Building Centre.

“In my view the majority of our LBP builders are great tradespeople, but when you probe into situations that have turned to fi nancial loss, they often point to little or no formal project management experience.

“Often, they are employees who have been working for a builder or building company and for whatever reason, they’ve decided to go out on their own. They have been taught great building skills but in many cases have not had the opportunity to be exposed to other aspects that are required to run a business – including job costing. “Plus after doing a full days work, and then coming home at night and having to complete compliance documentation, book work and chase debtors, they often don’t have the time to price every job in detail. And if they’re pricing a number of jobs at a time, it’s a huge amount of work.” RIPPLE EFFECTAccording to Paul, the impact of this has a ripple effect throughout the industry. “We’ve all seen examples where the less experienced builder’s quote is often the lowest and they get the job while the experienced builders who costed it out accurately miss out. “The cheapest price gets the job, it turns to custard and the builder either survives or he doesn’t, but the whole industry suffers because the prices are lowered and the customer gets into disputable issues because the builder is trying fi nd ways, sometimes shortcuts, to make up for something that’s gone wrong.”

MISTAKES IN PRICING JOBS COSTING INDUSTRY DEARLYMOST BUILDERS CAN TELL YOU A HORROR STORY ABOUT NEW HOME OR RENOVATION COSTS SPIRALING OUT OF CONTROL. IN TODAY’S HIGHLY COMPETITIVE TIMES, THE PROBLEM SEEMS TO BE MORE AND MORE APPARENT.

“We’ve all seen examples where the less experienced builder’s quote is often the lowest and they get the job while the experienced builders who costed it out accurately miss out”.

21

CONFLICTING PLANS According to Greg Lee of Estimating Services, communication problems are a big factor in the process. “When there are a lot of people on the project – designers, engineer, builder, homeowner – often the communication channels get blurred,” he says. “Sometimes each of them will have something different in mind, but it’s not down on paper on the plans and so the expectations can be different for each.” Greg says the other big issue is the quality of plans they have to work with. “Most of the drawings we work on have confl icts in them. In fact, 99% of them do. One part of the plans says one thing, and another part contradicts that. Compounding this is that there are also differences within the builder’s spec, engineer’s drawings and specs, architectural drawings and specs. “It’s a huge pitfall, the inconsistencies and lack of detail in the plans. And it’s a major cause of where the errors come from in the sense of whether the builder is making money or not. And it’s not improving.”

NOT READING THE TAGSWhen a quantity surveyor provides an estimate, there is usually tag sheets attached which highlight areas of uncertainty or where assumptions have been made. “The quantity surveyor can only allow for what they see on the plans, so if it’s not there, it’s not included. What they mean is, hey we couldn’t get clarity on that, so I’ve allowed for this,” says Greg. He explains: “Within the software we use, we have the template of how something common will be minimally constructed and these are the default settings used when the detail isn’t on the plans. “In most cases, it’ll be 100% right, but it is nevertheless based on an assumption because the detail wasn’t in the plans and so therefore we tag it. “But the problem is time and again, a lot of builders just don’t read the tags full stop, or they don’t understand the terminology. “Not reading the tags properly can make the difference between making $15,000 on a job or losing $30,000. That’s really where it’s at.”

SIGN UP TODAY FOR BUILDING BUSINESSREADING THIS WILL CONTRIBUTE TO YOUR LBP SKILLS MAINTENANCE REQUIREMENT.READING THIS WILL CONTRIBUTE TO YOUR LBP SKILLS MAINTENANCE REQUIREMENT.

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21

ENTRIES NOW OPEN!

The Registered Master Builders House of the Year competition is New Zealand’s premier residential and commercial building awards programme. Entry to the competition is open to RMBF members only and is a fantastic way for builders and their clients to celebrate the completion of outstanding building projects. The programme involves a series of regional events throughout New Zealand, followed by a national event where the coveted National titles are awarded. This is the fi rst year ITM has sponsored the competition.

Entries are now open for the competition, for more information visit www.houseoftheyear.co.nz/

Southern Region Registered Master Builders 2012 House of the Year Winner New Homes over $2 millionA J Saville Builder Ltd

ITM SUPPORTING BUILDERS THROUGH THE ITM LPB PROGRAMME

22

HARDWARE

These days we can click away on digital cameras and phones with reckless abandon with no thought given to the cost, or qualifying the importance of the photo subject. I used to fi nd taking photos a hassle, I thought so long as I had seen it, I would remember it and that was good enough for me. But having children teaches you how much you forget, and how valuable seemingly insignifi cant snaps become as time passes.

So now a camera is mandatory in my fi shing kit, not because I feel a need to prove I caught a fi sh I released, but to be able to have a record of a great moment or sight and ensure the memory will last.

This photo nostalgia has come to me as I’ve trawled through some old fi shing pics and I’ve decided to share a few of my favorites. They qualify as favorites not because of perfect lighting, composure or a huge fi sh, but because of the memory attached.

HERE’S A COUPLE OF PHOTO’S I’VE PICKED OUTMy friend and colleague Bill Miles took the picture above (top left). The woman holding the kingfi sh is my mum, Maureen. My son Shaw is looking on very proudly, impressed by his nans effort. I have photos of many bigger kingfi sh, but to me this isn’t a photo of a kingfi sh, it is a picture of pure elation. Mum was so stoked, and it was so well deserved.

I snapped the top right picture of myself earlier this year while on holiday. I had a whole day to myself, so I went out into the bay and had a look for marlin. The plan was to livebait, but I’d only caught two kahawai

and one trevally. ‘Not to worry, I’ll catch a skippy’ I thought. At the fi rst sign of good water I set out my skippy lure, and put out a single marlin lure as well. I hadn’t even got the lure set when a marlin raced in. I pulled in the lure with the marlin in pursuit and threw it a live kahawai, it ate it in plain view, but at the same time got tangled, jumped a couple of times and I lost it. I wasn’t disappointed, I’d seen the best bit, the bite, and it was only two minutes into my fi rst game fi shing trip of the season. Later that day I set out my live trevally in a fi shy looking bit of water, two minutes later I had a striped marlin lit up and buzzing between the bait and the boat. It eventually ate it and ten minutes later I tagged a ninety kilo stripy, and I leaned out and took a quick snap before I let it go. There are hundreds of marlin catches I’ve forgotten about, and chances are I will have eventually forgotten about this one too, if not for my decision to snap this pic. Because this pic exists, so does my memory of the great day I had.

I’ll be posting some of my favourite pics on The ITM Fishing Show Facebook page over the next couple of months – log in and check them out.

‘Till next timeKeep ‘em tight

Matt

ONLY A COUPLE OF GENERATIONS AGO, GETTING A PHOTO TAKEN WAS AN EVENT FOR WHICH YOU WOULD GROOM YOURSELF IMMACULATELY AND DRESS IN YOUR BEST CLOTHES, NOT THESE DAYS

CAPTURE THE MOMENTMatt’s mum Maureen with a kingfi sh Matt with a striped marlin

2323

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MAKE A TIME TO SEE A SPECIALIST

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