NZ's largest housing project welcomes Trade Innovations
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JUNE
2016
NZ's largest housing project
welcomes Trade Innovations
The building industry is booming and so is Trade
Innovations
Does the building industry have
a quality crisis on its hands
An investigation into how sub-standard materials
are slipping through the cracks
The thriving trend of sustainable
buildings
How does New Zealand stack up against the rest of
the world
C O NTENTS
3 Building scene
5 Tools of the trade
6 Building essentials
8 Bunnings news
welcome
The smart and wise side of building
11
14
Trade advice
Bunnings contacts
One of the many by-products of the current, and continuing, building boom is that everyone is on the lookout for
innovative ways to improve on traditional techniques.
This might be in terms of products that are cutting edge as well as services that add value to any project. This If you have any subjects you would like to
might also include information and communication technology tools entering the work place or solutions that Ifdiscuss
you have any subjects
or have you would
a case history like tolike to
you would
make places where people live, and work, more environmentally friendly. discuss or have a case history you would
share, email us at comment@tradeissue.co.nz like to
For the most part, and despite the positive times, there is little evidence of complacency coming to work. share, email us at comment@tradeissue.co.nz
So what is going on with the headlines we see about some of the ‘shonky shortcuts’ related to elements of the #
Christchurch rebuild. The question must be asked is all the hoopla just a media beat-up or is there a modicum
of truth to the accusations? In this issue we look behind the scenes to what’s going on.
Green building is one area where enormous headway, and changes, are taking place. As the name implies it
focuses on creating structures that tick all the boxes of planet friendliness and sustainability. Information from Earn learning points
authority source The World Green Building Trends 2016 indicates that what might have once been a ‘fringe’ topic With Trade Issue
in building forums is instead becoming more and more mainstream.
Once you have read this
The number of such certified buildings has doubled since 2013 with indicators showing similar growth by 2018. edition of Trade Issue
In this issue we talk about why this trend is going through the roof and how New Zealanders, albeit a little more remember to keep a record
slowly than other countries, are coming on board. of your learning.
Innovation and tradition might seem to some to be contradictory but in the case of a new venture, Trade
1 hour of learning = 1 point June 2016
Innovations, the two sit together comfortably.
Read about the changes to the
There is even a strong family element to the story which makes it even more enduring. The concept behind this LBP Skills Maintenance programme.
Find out more at:
new building brand is based partly on historical connections and also opportunities to make changes to what bunnings.co.nz/trade/trade-central
was being used to build New Zealand. Fast forward to literally this year and the launch of Trade Innovations
brings a whole host of smart building products to the market.
Bunnings is an important part of this tale then and now. The part we particularly like is that combining talents,
strengths and expertise has produced something that raises standards and also delivers a better end product to
builders and consumers.
For those with 10 year builders guarantees on their mind we have some soothing and insightful information as
to why these do make sense.
Our Building Scene section brings solid information to the table related to the ongoing debate about whether
foreign investors and local ‘tax dodging’ property traders are really ruining our chances of home ownership.
Supporting your business
with our trade promises
As always be safe and enjoy the read.
Des Bickerton
Commercial Manager
The opinions expressed in Trade Issue are not necessarily those of Bunnings. Although every effort has been made to ensure the accuracy of the information, the reader
remains responsible for the correct selection and use of tools, materials and systems as well as following any law or code mentioned in this issue. Terms and conditions apply. See Trade Desk instore for details.
2
B UI LDI NG SCENE
scene
BUILDING
By Rodney Dickens
scene Number of Consents for New Dwellings
Total Dwellings Houses Other Dwellings
Property tax changes pose a temporary threat
Monthly Annual Monthly Annual Monthly Annual
The October 2016 property tax changes aimed at foreign investors and local
Nov-13 2,267 20,636 1,519 16,385 748 4,251
tax-dodging property traders pose a near-term threat to the level of residential
Dec-13 2,035 21,290 1,382 16,721 653 4,569
building mainly for Auckland. The threat extends to parts of the upper North
Jan-14 1,644 21,622 1,352 16,945 292 4,677
Island where investors were particularly active prior to the tax changes (e.g.
Feb-14 1,768 21,848 1,493 17,165 275 4,683
Hamilton).
Mar-14 1,999 22,372 1,632 17,491 367 4,881
The behaviour of existing dwelling sales reported by REINZ in the chart Apr-14 2,082 22,699 1,374 17,514 708 5,185
provides some insight into the likely impact of the property tax changes on May-14 2,125 22,853 1,685 17,675 440 5,178
residential building. Auckland existing dwelling sales were also hit by the Jun-14 2,002 23,316 1,490 17,924 512 5,392
November 2015 increase in deposit requirements for investors borrowing Jul-14 2,282 23,705 1,584 18,023 698 5,682
from banks that should be less relevant to the outlook for residential building.
Aug-14 2,059 24,016 1,483 18,052 576 5,964
Auckland existing dwelling sales are showing a hint of recovering but in Sep-14 1,985 24,139 1,492 18,031 493 6,108
March were still well below the September 2015 level. March sales in the rest Oct-14 2,152 24,400 1,689 18,175 463 6,225
of the North Island had almost recovered to peak levels, while in the South Nov-14 2,420 24,553 1,639 18,295 781 6,258
Island March sales were above the September 2015 level. Dec-14 2,199 24,717 1,446 18,359 753 6,358
Some foreign and local investors put off by the policy changes are likely to Jan-15 1,703 24,776 1,141 18,148 562 6,628
adapt and return to the market over the next couple of years based on the Feb-15 1,758 24,766 1,349 18,004 409 6,762
experience following the 2010 property tax changes that had temporary Mar-15 2,271 25,038 1,640 18,012 631 7,026
negative impacts on existing dwelling sales and new dwelling consents. Apr-15 2,112 25,068 1,365 18,003 747 7,065
However, it is possible more tax changes or lending restrictions will be May-15 2,171 25,114 1,587 17,905 584 7,209
introduced (e.g. the land tax for foreigners conditionally proposed by the PM). Jun-15 2,042 25,154 1,502 17,917 540 7,237
Jul-15 2,824 25,696 1,799 18,132 1,025 7,564
Tax changes are positive for some places
Aug-15 2,291 25,928 1,617 18,266 674 7,662
To the extent the property tax changes and the lending restrictions for Sep-15 2,242 26,185 1,781 18,555 461 7,630
Auckland investors have negative impacts on the Auckland housing market Oct-15 2,349 26,382 1,732 18,598 617 7,784
and further afield they are positives for the rest of the country. Nov-15 2,831 26,793 1,864 18,823 967 7,970
Any resulting weakness for especially residential building increases the odds Dec-15 2,538 27,132 1,661 19,038 877 8,094
of another OCR cut or will at least prolong the case for low interest rates. This Jan-16 1,695 27,124 1,286 19,183 409 7,941
means the policy changes are mild positives for some parts of the country Feb-16 2,379 27,745 1,712 19,546 667 8,199
and will help the housing boom spread further afield. I expect places like Mar-16 2,317 27,791 1,815 19,721 500 8,068
Wellington and the upper South Island to be beneficiaries. Source: Statistics New Zealand
Housing Accords should start to matter more
REINZ EXISTING DWELLING SALES
The Auckland Housing Accord has so far resulted in 154 Special Housing
Seasonally adjusted month numbers
Areas being approved involving up to 56,000 potential new dwelling sites. 3,750 3,750
Building is already underway for some SHAs but more will come on stream 3,500 Rest of North Island
3,500
this year, which will partly insulate Auckland from the negative impact of the 3,250 Auckland 3,250
policy changes. 3,000 South Island 3,000
2,750 2,750
Housing Accords in some other centres will also start to have some bearing
2,500 2,500
on the level of residential building this year and more so next year. Some
2,250 2,250
progress is being made with Accords in Christchurch, Wellington, Tauranga,
2,000 2,000
Queenstown, Nelson and Selwyn.
1,750 1,750
1,500 1,500
1,250 1,250
1,000 1,000
750 750
Rodney runs Strategic Risk Analysis, a property and economic research company. Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Visit their website www.sra.co.nz to sign up for free property and economic reports.
3
WELCOME TO THE FOLD
2.7m
The insulation will fully fill 2.7metre high steel framing in one go
QUICK and because the insulation will hold firmly in place there is no
INSTALLATION requirement for adhesives.
2m
LESS Each pack will cover an area of 32.4m2*, which means you need
less packs to get the job done.
PACKS
*Area per pack quantity is for the 50mm product
1m
Thickness Density R-Value Width Length Pieces Area per
(mm) (kg/m³) (m2K/W) (mm) (mm) (per pack) pack (m²)
50 11 1.3 600 2700 20 32.40
75 11 1.9 600 2700 14 22.68
Terms and Conditions:
Win 1 of 2 AEG 18V Compact Radios Purchase any Earthwool glasswool: Acoustic insulation at any
participating Bunnings store throughout New Zealand to go in
when you purchase Earthwool glasswool: Acoustic insulation the draw to win 1 of 2 AEG 18V Compact Radios. Promotional
period is between 1st June - 31st July 2016. Prizes will be
worth $99 incl GST. distributed at the conclusion of the promotion. Prize is to be
taken as stated and is non-exchangable.
4
TOOLS OF THE TRADE
innovation
Whether you’re an apprentice or professional, these new products will give
you more power, better performance and offer plenty of options when on site.
Power up 00318741 Trade Essentials 00314029
AEG’s 18V Twin 5.0Ah Pro Lithium Battery Pack is a great With this 18V 11 Piece Kit, AEG has the essential trade
way to enter an 18V cordless system that gives you the option tools covered. It includes a hammer drill, an impact
to use the same battery to power a variety of power tools. This driver, an impact wrench , a 125mm angle grinder, a
pack features current overload protection, thermal overload, 165mm circular saw with blower port, a heavy duty
individual cell monitoring and a fuel gauge. Like all other AEG reciprocating saw, a random orbital sander with 6 speed
batteries, with registration online, these packs come with a 3 settings and 3 x 6Ah batteries to give you plenty of run
year extended warranty. $216.52 excl GST. time. $1,477.39 excl GST.
Longer Lasting Performance
00322394
The AEG 18V 5pce Brushless kit delivers
superior performance and improved runtime
over standard brushed tools. This kit includes
a high torque 3-speed impact driver; a powerful
compact hammer drill; a 184mm circular saw;
a 125mm angle grinder and a high intensity LED
torch. With two 6.0Ah batteries, this kit delivers
exceptional runtime with heavy duty performance
$867.83 excl GST.
See through walls 00314279
Easy access to storage 00723186 The Zircon Stud finder makes studs visible. It features a
This Timber Attic Ladder, made by Sellwood, offers StudScan mode which locates the centre, edges, and direction
plenty of opportunities for your client at your next of wood or metal studs up to 19 mm deep. Its WireWarning®
build. It provides a safe easy access to the attic which detection tells you where live, unshielded AC electrical wiring
will give you more storage space. The ladder features are up to 51mm deep. It also features a SpotLite® Pointer
a full length hinge, a larger opening and can hold a which shines an arrow-shape to clearly indicate the centre of
maximum load of 200kg. $651.30 excl GST. the stud, as well as a backlit LCD display that illuminates when
the centre of the stud is detected. $85.22 excl GST.
A clean workplace is a safe
workplace 00305256
Karcher’s ProNT 400 Commercial Wet & Dry Vacuum was
designed with tradies in mind. Dirt, fine dust and accidental
spills is no problem for this vacuum – especially with its
semi-automatic filter cleaning system and a powerful
1350W motor that provides 230mBar suction and
56 litre per second airflow. Power tool auto
A strong grip 6010506 stop/start on the on-board 10 amp power socket
Engineered and made in Germany, the NWS plier range is forged with high grade steel means that the vacuum can be connected directly
for strength and durability – designed to meet the highest demands. Its ergonomic to power tools and start when the tool starts.
handles ensure comfortability whilst on the job. From $34.74 excl GST. $520 excl GST.
5
B U I L DING E SSE N T I AL S
essentials
BUILDING
166 Piece
Socket Set
1/4, 3/8 & 1/2".
00228312
8m Tape Measure
Magnetic tip. 27mm blade width.
Nylon coated. 00249864
$
1737
EXCLUDES GST
$
17304
EXCLUDES GST
20oz Claw Hammer
Nylon grip. 00127078
$
6522
EXCLUDES GST
Cargo Case
900l x 550d x 400h mm.
Weather sealed. Lockable.
Grey or blue. 00287315
$
207EXCLUDES GST
83 475mm Handsaw
8 point. 00768215
$
11 22
EXCLUDES GST
Tool Trolley
1052 x 963 x 411mm.
00234846
$
520
EXCLUDES GST
87
Safety Boots
Brown buffalo leather, steel
toe-cap & PU/TPU outer sole.
03350498
$
138 EXCLUDES GST
26
PER
PAIR
Landscapers Rake
Fibreglass handle. Braced
aluminium head that doubles
as a soil leveller. 00255361
$
40
EXCLUDES GST
49 Handipour
Wheelbarrow
72L. 00281507
$
138
EXCLUDES GST
26
6 Terms and Conditions: Not all services and products featured are available in all stores, but may be ordered. See in store for product availability.
BUILDING ESSENTI ALS
Impulse
Framemaster
2.2Ah li-ion battery.
00313906
$
816EXCLUDES GST
52 254mm
Table Saw
1850W. 00291062
$
867EXCLUDES GST
83 18V 5.0Ah
Li-ion Battery
00317575
$
173EXCLUDES GST
04
18V
Combo Kit
Includes drill driver, impact
driver & 2 x 5.0Ah li-ion
batteries. 00279744
$
68609EXCLUDES GST
260mm Slide
Compound Mitre Saw
1430W. 00474853
$
52087
EXCLUDES GST
230mm
Angle Grinder
2000W. 00310482
$
20783
EXCLUDES GST
550W Drill Press
06290398
300W
Orbital Sander
06230231
$
164 EXCLUDES GST
35 185mm
Circular Saw
1800W. 00111228
$
260EXCLUDES GST
$
327
EXCLUDES GST
83
50L Petrol
Wet & Dry Waterblaster
Vacuum 190cc. 2700psi.
250W Multi 06290310 00241369
$
196 52 $
242 61 $
738 26
Function
Tool
1 year trade
warranty. 00276902 EXCLUDES GST EXCLUDES GST EXCLUDES GST
We reserve the right to restrict the purchase of commercial quantities. All prices are exclusive of GST. Prices valid to Thursday 14th July 2016. 7
B U NNINGS NE W S
Trade Innovations captures a slice
of NZ's largest building project
The New Zealand building industry is booming.
Those with an innovative approach and a product line
to match are set to nail it even when the tide turns.
Trade Innovations is in some ways the new kid on One of the products Lester came across was Maglok
the building block having set up shop in the early - a made in China material with Australasian
part of this year. Codemark accreditation behind it that was a real
breakthrough in flooring solutions.
The business was created as a joint initiative with
Bunnings Trade and father and son team Lester and The product proved to be the absolute best
Tim Haycock with the purpose of promoting alternative to plywood, strand board, fibre cement
innovative products at a developer and specifier board, and particle board. Although specifically
level. It specialises in innovative and high quality designed for wet areas, this innovative flooring
products that are considered essential parts of any board is also mould, insect and fire-proof. It is made
project build. from environmentally-friendly, non-hazardous
materials that are actually more cost-effective and
Despite its seeming youth the company has strong
easier to install than its predecessors.
connections with the past including an association
with Bunnings. There is no question that Lester’s “Lester began importing this for Southpark jobs
vast experience in this space forms a critical part of specifically. The only problem, which then became a
Trade Innovations’ through understanding of the major opportunity that Bunnings helped drive, was
product selection process. that once builders were exposed to the product they
wanted it for all the building projects they were
Tim says of his father, “He started a business in
involved with.”
1985 that represented a number of major suppliers
in both New Zealand and Australia focusing simply It was at this time that Lester approached Bunnings
on updating and educating architects.” with the idea to take this product to the wider market.
Adding in his experience and understanding of the
With his knowledge and connections Lester was
importance to get the product on the plans, Trade
appointed as procurement director for one of the
innovations was created to target architects and
country’s major developers Southpark Corporation.
specifiers with smart, innovative products like
This role allowed him to literally travel the world to
Maglok.
look for products that allowed the company to build
better quality for the same cost, or the same quality In Lester’s role of Procurement Director at
for less cost than existing options. Southpark, he had also identified other local
innovative products that really had the opportunity to
Many of these products could have been sourced
improve the current industry standards. As a
from offshore, says Tim, but the focus was also on
collective group, the Trade Innovations products
keeping New Zealand working. Southpark had the
have already caught the eye of many architects and
pedigree, and scale, to import and warehouse major
developers.
consignments themselves but, where possible,
chose to support local manufactures.
8
BUNNI NGS NEWS
Innovative Products for Smart Developers • J-FRAME which is a CodeMark certified product smooth finish and high quality yet simple
that is a great alternative to conventionally-sawn installation systems.
A current project that shows the value of these
timber framing. It is resistant to warp, twist and • Deckchair is an ingenious way to install a deck
synergies is, fittingly, one involving a major
bow with every piece of every length true straight over a membrane, meeting code compliances for
Southpark Corporation project at Market Cove.
and dimensionally stable. drainage and entry height requirements. It is made
General Manager of Market Cove, Guy Taylor, is • Mammoth Insulation which is a friction fit from post treated LVL and assembled in factory
using Trade Innovations products as he understands polyester thermal and acoustic insulation that’s making for a very quick and stable decking
the importance of having a high quality product to guaranteed to still be delivering outstanding sub-structure.
sell even when the housing market cools. The performance 50 years after installation. It is also
project will commence with the first 50 terraced
homes to be built by Precision Construction, and the
100% recyclable and a great contributor to “We won’t sacrifice quality
Homestar ratings.
project will eventually have up to 1500 units.
• Maglok engineered “fit for purpose” fibre
for quantity. The products
Grant Millar of Precision Construction finds favour reinforced magnesium oxide flooring board. The we choose to promote reflect
with the team behind the project. ideal alternative for flooring that’s water, mould,
“It has been a revelation working with Southpark fire and squeak resistant. our convictions.”
Corporation, Bunnings and Trade Innovations to • Hydrapanel is a composite magnesium oxide wall Much of the product line distribution wise is
create an optimised timber-framed building that is and ceiling lining that is an ideal alternative to exclusive to Bunnings, says Tim.
both sustainable and cost effective. This has Hardiglaze and Seratone. Making it perfect for
happened because of the inter-relationship between bathrooms, kitchens, laundry’s, commercial food “We’re spending time bringing the Bunnings
the client, architect, builder and suppliers. All had preparation and even garages. Account Managers up to speed on what we’re doing
the objective of producing high quality, stylish and and where mutual opportunities might lie.”
• Redwood which is renowned for its beautiful rich
spacious homes backed by impressive engineering, colour. It is a natural, renewable resource and has “Trade Innovations will succeed because no other
lasting materials and superior attention to weather a natural resistance to decay. A direct replacement merchant has invested the time and resources to
tightness.” for Cedar cladding and decking that will look create a portfolio of innovative products to builders
Essential materials better and last longer. There’s also a very and then pushing from the top to get these products
competitive finger jointed, pre-primed weather specified and on the plans.”
To date the Trade Innovation range includes: board that will outperform pine as well as being By being innovative, cooperative and building smart
• MAXRaft® is a fully insulated foundation system able to be painted dark colours. relationships with the likes of Bunnings shows how
designed to provide warmer, healthier and more • BGC Fibre Cement that delivers exceptional the job can really get done.
energy efficient homes from the ground up. quality and saves you time and money. BGC has a
9
For Cost Efficient
High Quality Ceilings
Install 13mm GIB® Standard plasterboard with
GIB® Rondo® metal ceiling battens at 600mm centres
GIB® Rondo® metal ceiling 13mm GIB® Standard For more information contact
battens to provide a stable plasterboard to help achieve the GIB® Helpline on 0800 100 442
substrate. an overall smooth finish. or visit www.gib.co.nz
BE IN TO WIN A TRAILER LOAD
OF GOODIES WORTH $26K
Buy 13mm GIB® standard or GIB® Rondo® with any other GIB® branded product in the month
of June and you'll go in the draw to win. Not only could you be driving away with a brand
new trailer, but we'll fill it with everything from hand tools to trade essential power tools
- that's $26,000 worth of trade gear!
Terms and Conditions:
Purchase 13mm GIB® standard or GIB® Rondo® with and other GIB® branded product in the month of June at any participating Bunnings store
throughout New Zealand to go in the draw to win a GIB® Trade Trailer filled with goodies valued at $26,000. Promotional period is between
1st - 30th June 2016. Prize will be distributed at the conclusion of promotion. Prize is to be taken as stated and is non-exchangeable.
10BUSI NESS ADVI CE
Does the building
industry have quality
crisis on its hands?
By Nikki Mandow
It seems scarcely a week goes by without another will encompass both building design and products, released over the next couple of months – although
story about substandard building products in and will be starting any time now. there are differences between the two countries.
New Zealand. But is this as much of a crisis as the
“At the same time a group of industry associations are For example, NZ’s product assurance scheme, which
media is suggesting?
carrying out a study into issues raised by the puts the responsibility on building product suppliers
On March 15, Radio NZ ran a story about “shonky Auckland Council with relation to construction there, to provide evidence that their products are fit for
building products”. The construction industry was including building materials. We are hoping to see purpose, is held up as an exemplar of good practice in
looking into product quality “after fielding a flood of some results in the next 2-3 weeks... We are looking Australia, he says.
calls from worried members about a range of untested to find out if there is anything systemic in the system
However, the NZ system is to a large extent dependent
imports”. Building Industry Federation Chief Executive needing whole-of-industry effort.”
on being able to trust manufacturers and suppliers’
Bruce Kohn suggested potential problems existed in Bruce says the message for anyone involved in claims, and with the globalisation of the supply chain,
plumbing and electrical products, exterior claddings, building is simple - be careful. “Make sure you are more of our building supplies will potentially come
glass and power tools. buying from a trusted supplier. Most reputable from outside the country.
At the same time, the media started covering builders and architects know what products they can
At the moment, New Zealand doesn’t have mandatory
Commerce Commission’s investigations into trust to do the job.”
third party testing for building products, Derek says,
sub-standard steel mesh for reinforcing concrete, At the MBIE, Manager of Building System but that could be one possibility. Another would be
with three companies pulling mesh products from Performance Derek Baxter agrees a lack of evidence is expanding the supplier declaration of conformance
the market. The Australasian Certification Authority a problem. The ministry has only received a handful of (SDOC) system beyond energy safety. However,
was quoted saying New Zealand was “the ‘wild west’ complaints, he says, with builders and tradespeople increased compliance often increases costs – which
of steel testing”. often reluctant to come forward. is also part of the equation, Derek says.
Meanwhile, some major suppliers of cladding have The existing international system of accredited
been involved in multi-million-dollar legal battles “Our big message is ‘Make laboratories to test products, means it is relatively
around leaky buildings. And in Australia, the Senate
launched an enquiry into cheap imported building
a complaint’. We want easy to check whether a product from a different
country meets local standards, he says. “It’s a
materials in June 2015 after a spate of problems, people with concerns about sophisticated system. We have IANZ laboratories and
some of which are relevant in New Zealand. there are reciprocal arrangements with overseas
specific products (not laboratories.”
Bruce Kohn says builders are concerned, and it
appears the problem is increasing, fuelled by factors anecdotes) to contact the Derek Baxter says the main message at the moment
like the pressure to build more affordable houses, the
building boom bringing in a wide range of different
Ministry.” for building companies is to be careful what you buy.
“We are aware you can buy building materials on
professionals, and a worldwide glut of steel (“In China If you know of some guy down the road using dodgy
TradeMe or Alibaba, but we’d like to think that if
there's currently a saying that 'steel is cheaper than products, complain. He’s giving the industry a bad
New Zealand builders and tradesmen are offered
cabbages," Bruce says.) name, and he’s taking work away from legitimate
materials at 30%-50% less than they are currently
The first step, he says, is to gather evidence. Are some operators.”
paying, they would be checking that out, rather than
builders, for example, substituting lower-quality, Derek says New Zealand will be looking closely at the just pocketing a bargain. If it looks too good a deal,
cheap imported materials for the ones specified? Is results of the Australian Senate enquiry when they are it probably is.”
poor-quality, out-of-spec product being brought into
Auckland using forged documentation?
Bruce says the leaky homes crisis was a good
example of what happens when problems go
unchecked, and this time the main players want to be
proactive. “We’ve been keeping an eye on the situation
for the last 18 months, especially since there has been
a major surge in imported building products from
Asia. The Construction Strategy Group (CSG) and the
Construction Industry Council (CIC) are
commissioning a major study from [building research
organisation] BRANZ around building quality, which
11S U STAINABI L I T Y
The thriving trend
of sustainable buildings
By Nikki Mandow
Green building is on the rise, according to expenses, and wind and earthquake resistance far quality housing stock, for children to get less sick, but
international research. The World Green Building exceeds Building Code requirements. it’s also a challenge. People are always a bit scared of
Trends 2016 SmartMarket Report suggests the number change to the way they always do things, so they put
Over in Papamoa, Belvedere Group commercial
of certified green buildings worldwide has doubled up barriers; they say it’s going to cost you more.”
manager Iain Gleaves says its 10 Homestar house will
since 2013, and construction companies expect
be priced around $785,000, but will provide significant Alex says that’s a myth. The evidence is that there’s
numbers to double again by 2018. New Zealand has
operational cost savings for its future owner. “We have very little difference in cost, as long as architects and
been slow to adopt sustainable building standards, but
calculated our home would save the average developers factor in green design at the beginning,
proposed changes to the Auckland Unitary Plan have
four-person Tauranga family $3,198.68 per year. Our rather than trying to retrofit it onto existing designs.
put the issue firmly onto the agenda.
starting point for the [sustainable homes] range, which
“In the early adopter phases, when people are building
Christchurch, August 2015, and there’s a bit of will be a 7 Homestar Design-rated house, will save
a green building for the first time, it might be more
excitement in the green building sector. Architectural $1,833.59 per year.”
expensive, but not in the long run - once you’ve built
designer Bob Burnett has become the first developer
The news is a breath of clean, warm air in a generally a few.”
whose house has achieved a 10 Homestar Built rating
sombre picture around green building in New Zealand.
- the highest accolade for an environmental home in The World Green Building Trends 2016 SmartMarket
The NZ Green Building Council, which administers the
New Zealand. The 140sqm, two-storey home at 11, Report study found that internationally, sustainable
Homestar rating scheme, calculates that the minimum
Church Square, Addington, snuck ahead of the houses commanded an average 7% premium over
standard for a healthy, warm, sustainable, energy-
previous front-runner, a Belvedere Group showhome traditional buildings when sold; other international
efficient home is a 6 Homestar rating. But a typical
in Papamoa, Bay of Plenty, which was awarded the first research suggests environmentally-certified homes
New Zealand new house being constructed to meet
10 Homestar Design rating in May the same year, but sell for around 9% more than non-certified homes in
Building Code requirements would rate only around
hadn’t yet opened its doors. the same market. Early NZ evidence suggests the same
4 Homestars, says NZGBC chief executive Alex Cutler.
trend: valuation of one 7 Homestar home showed it
The Addington home features solar power and a And the majority of New Zealand’s housing stock
attracted a 10% premium.
combined greywater and rainwater system. Building would be in the 2-3 Homestar bracket.
materials are environmentally-certified and masses of The Green Building Trends report said sustainable
“We want to see all new homes built to a 6 Homestar
insulation keeps the home warm. A solar wall house owners saved 13%-14% in energy, water and
rating and to encourage people to upgrade their
ventilation system uses the sun’s energy to pre-heat other costs over a five-year period; Belvedere’s Iain
existing homes from 2/3 Homestar to 4/5 over time.
ventilation air, substantially reducing heating Gleaves estimates a 7 Homestar rated house will save
It’s an opportunity for New Zealand to have a better
$1,833.59 per year, as well as being warmer, healthier
and more comfortable.
NZGBC’s Alex Cutler says there’s more customer
awareness around green homes these days. In the
latest NZGBC trends survey, people in the market for a
new home said they valued orientation towards the sun
(91%), high levels of insulation (90%) and energy
efficient features like insulation, double glazing and
solar power (72%).
Customers buying into Auckland’s Special Housing
Areas may already be getting these attributes. A
provision for developers in the SHAs cuts red tape if
they adopt 6 Homestar minimum standards in their
new houses - and the Auckland Council is using this
12S USTAI NABI LI TY
Six for six
Top six things to bear in mind if you are building a 6
Homestar rated home
Site orientation:
• Good house orientation to maximise winter sun;
good ventilation. For example: maximise glazing
on north and east sides; minimise glazing on
south and west sides; Good-sized eaves (600 –
900 mm) on north aspects; Thermal mass (e.g.
exposed concrete) directly adjacent to north facing
windows.
Thermal performance:
• High levels of insulation in walls, ceilings and
under-floor (including edge of the concrete slab)
• Double glazing with low-e glass or thermally
broken window frames.
Heating, lighting, water fittings and
as a test-bed as it considers whether to introduce 6 something you can retrofit at the last minute. appliances:
Homestar as mandatory in the Unitary Plan for all • Efficient heating – e.g. wood burner, pellet burner
“I’m fed up with being brought into design teams, and
developments of five units or more. or ENERGY heat pumps.
they say ‘Here are our plans, we want to get a 6
Already, the new special housing area provisions have Homestar rating - how do we do it?’ And I know it’s • High energy rating appliances: 3.5 star
seen registrations for 6 Homestar ratings rise from 600 going to be expensive because there are too many minimum for fridges, 4 star minimum for
in January 2015 to 3300 now, Alex says, with more windows facing south and there are a lot of dishwashers and clothes washers.
assessors coming on board to certify the properties. modifications to be made.” • Energy efficient lighting (CFLs or LEDs); No
“6 Homestar being in Auckland Unitary Plan is the A better option is to work with a Homestar assessor recessed downlights; Daylight and motion sensing
best piece of news anyone could have.” from the early stages - including getting them involved controls for outdoor lights
in the concept design, he says. • High water efficiency (WELS) plumbing and
Although independent research suggested taking an
fittings: 5 stars+ for taps; 3 stars+ for showers; 4
average three-bedroom home and adding items to Alex Cutler says some of the big property developers
stars+ for toilets; 5 stars+ for clothes washers; 4
achieve a 6 Homestar added 2.2% to the build cost, are starting to understand that they need to work
stars+ for dishwashers.
she says factoring in sustainability from the design differently. “People are beginning to get it. They’ve
stage means green houses needn’t cost more. realised you have to be thinking of your plans and Moisture control
your whole business model in a different way - • Kitchen and bathroom extractor fans, and clothes
Alex Reiche, founder and Director of The Building
including how you orientate your house, what features dryers, vented to outside; No carpet in kitchens or
Excellence Group, and a certified Homestar practitioner
you might include as standard (a water tank, for bathrooms
and assessor, says the first time you build a 6
example), and how to alter specifications to get the • Sinks and baths with built-in overflows
Homestar home it might seem complicated and
best insulation and ventilation.”
expensive, but once architects and builders get used to Materials
a new way of working there’s little additional cost. She says the concept of a green building is about • All paints and sealants are low-VOC (volatile
maximising whole-house thermal performance. organic compounds); Plasterboard, paints,
“It’s new and seems difficult at the moment and not
everyone understands it fully yet, so they are worried “Think of your house wrapped in a duvet. If you don’t insulation, carpets and floor coverings are
about it costing more money. I’m hearing ridiculous wrap the duvet underneath the heat leaks out - but Environmental Choice; FSC certified timber where
things - like some people who claim 6 Homestar will concrete slab edge insulation is still not standard practical; no non-FSC certified tropical hardwoods
add $40,00-$50,000 to the cost of a house. But I know practice in New Zealand. Likewise with ventilation - for decking.
that’s not true, because I’ve done so many assessments you have to take moisture out, so you are looking at Waste
and I know you can do a 6 star home for hardly any range hoods, fans in the bathroom and cross- • A site waste management plan that follows REBRI
more than a standard home.” ventilation - windows that you can open to ventilate guidelines; Construction waste to landfill less than
through the house.” 15 kg per m2 of finished floor area (under 2.7
He says the most frustrating part of his job is when
he’s asked to tack environmental criteria onto plans She says although a few of the components of the tonnes for a 180 m2 house); installing composting/
that weren’t drawn up with that in mind. For example, Homestar points scheme are compulsory, builders can recycling facilities.
one of the most critical parts of green building is mostly pick and choose their credits, giving the Source: NZGBC
“passive solar design” - getting the house oriented to scheme flexibility. For example a builder can get
make best use of the sun, he says. This means, for
example, windows being put on the right side of the
credits for minimising onsite construction waste.
Part 2:
“We have a technical manual and we train people. And Going Wild with Green Building. In our next issue
house, and designing areas of exposed concrete or
Homestar assessors are a good source of information we look at two builders who tried their hand at
tiles in the right place so that the sun hits them in
about specifications.” building an Earthship – the ultimate in self-
winter and warms the house, thereby minimising the
heating required. But passive solar design isn’t sustaining buildings.
13TR A DE A DVI CE
Does a 10 year builders guarantee
really make sense?
The recent announcement from the Certified Builders Act and other legal means to enforce their rights. How does an independent builders
Association that it is now mandatory for all members to However, if the company has closed down then its guarantee benefit the homeowner?
give their clients an independent 10 year guarantee for contractual and legal obligations can’t be enforced, Third party builders guarantees, such as Builtin’s
work above $30,000 brings them into line with similar because the company no longer exists. Homefirst Builders Guarantee, reassure homeowners that
requirements for Master Builders. So are they just That’s OK, many builders say, we don’t plan on going they will:
pre-empting what the government is going to do bust! Indeed, no one does. The issue is that your • protect the homeowner’s deposit
anyway, or should builders and homeowners still have customers can’t be sure you’ll be around for the next 10
the freedom to choose what guarantees they offer and • complete the build if their builder can’t, as well as
years if something does go wrong (and frankly, neither
accept? covering the extra costs to do so
can you). And unfortunately some high profile cases of
building companies going bust have increased the • fix defects for up to 10 years
Firstly, what’s the difference between a
public’s concern about this. We don’t need to tell you They are a guarantee of the builder’s obligations under
homeowner’s rights under the Building Act
about the pressures of running a building business, their contract and in law. In a recent case in
and the cover in one of these 10 year
even the best sometimes get into difficulty and often Christchurch more than $1m has been paid on behalf
guarantees?
through no fault of their own. This is why homeowners of affected homeowners after their builder went bust,
This is one of the most common questions Builtin are and their banks will often require an independent many of whom would otherwise have lost their deposit
asked by builders. “If I have to guarantee it for 10 years guarantee. or faced increased costs to complete their homes or fix
under the Building Act, why should I need to provide a defective work.
separate guarantee?” Put bluntly, if a building company
is still trading then its customers can use the Building
“Your customers can’t be
sure you’ll be around for the
next 10 years if something
does go wrong.”
Do builders have to provide them?
No. The new disclosure rules that came into force in
January 2015 only require you to disclose whether you
can offer a guarantee, you do not have to provide one.
However, building trade associations require their
members to provide them and the government is
examining whether they should be made compulsory.
Either way, as more homeowners, and their banks,
require these guarantees, being able to offer one helps
builders to win business.
Builders that do want to offer their clients an insured 10
year guarantee can contact Builtin New Zealand, an
independent provider of insurance and guarantees for
14TRADE ADVI CE
builders. Only builders who meet Builtin’s accreditation criteria can offer their
Get to know your
guarantee, but there is no cost to become accredited.
Account Managers
How do they benefit builders? Profiling Jeff Scott
It used to be that there was no benefit for builders under these guarantees, however Hornby Trade/Riccarton/Shirley
027 260 2468
this is changing. For example, under the Homefirst Builders Guarantee, if there is a
claim after your initial 12 month defects liability period ends the insurer will not Jeff has 28 years experience in the
chase you to recover their costs (although they may seek recovery from your construction industry and is a keen
motorsport competitor. A key part of the
subcontractors if they were at fault). This effectively insures the builder from the cost
job for Jeff is team spirit and this is what he
of rectifying those defects that are covered by the Guarantee. Homefirst also includes
enjoys most about working with Team at the Hornby Trade Centre.
$10,000 cover to refund deposits paid by the builder to a component supplier who
then goes bust. His biggest challenge has been keeping abreast of all of the new products
that have been launched in NZ for the building trade, most of which
Overseas examples Bunnings stock.
In many Australian states it is a legal requirement for builders to provide what they
call a home warranty for every project, and they can’t be licensed without first being Bunnings Trade Account Managers
Area Sales Managers Pukekohe Heinz Baker
approved to provide warranty cover. In the UK more than 80% of all new homes are Carla Hira 027 442 0234
Rick Reid 027 246 2015
covered by a third party 10 year guarantee, although the scheme there is optional. 021 875 048 Naenae
While the Government here is looking at the possibility of making builders Avondale Trade/ Steve Boyles
Matt Cardey Glenfield 027 445 0955
guarantees compulsory, the current approach is to encourage the building public to Jeff Zhang
027 652 5268 Derek Rodger
become more informed and choose a builder who can provide one. 021 242 5982
027 702 0414
Tim Trowell Louie Liu
In a nutshell 027 200 2034 027 484 2591 William Hurihanganui (CJ)
027 232 5283
You can’t predict what might happen to you or your business, certainly over a Avondale Trade/
Aubrey Grey Silverdale Trade Porirua/Naenae
period of 10 years. It’s the reason you insure for any risk. And it’s why third party 021 626 030 Craig Petzer Jennie O’Regan
027 436 0293 027 442 5467
builders guarantees are increasingly being asked for by homeowners and their
Glenfield/Silverdale Trade Waikane/Naenae
banks. For builders, depending on which guarantee you offer, they also now give Area Account Matt Jenkins
Managers Joanne Smith
cover for you too. 027 246 2002 027 243 1932
Whangarei/Kaikohe/ Northshore/Silverdale Trade Nod Edmonds
Builtin New Zealand is a specialist in insurance & guarantees for builders & Kerikeri Alex De Leeuw 027 274 2947
Taite Raniera 027 431 8504
tradespeople. For more information visit www.builtin.co.nz, email Ben Rickard at 027 499 0812
Rotorua
Cambridge Murray McGregor
ben@builtin.co.nz or call him on 0800 BUILTIN. Avondale Trade/ 027 246 2006
Bruce Robertson
East Tamaki Trade 027 475 8661 Mark Canning
Penny Ke 027 498 7136
027 475 5019 Te Aroha/Paeroa
Nigel Phillips New Plymouth/
Avondale Trade 027 230 8569 New Plymouth Trade
Rhys Lord Danny McVicar
027 246 2001 Hamilton
027 246 2011
Darren Mayo
Avondale Trade/ 027 246 2008 Palmerston North
Mt Roskill/ New Lynn Howard Yates
Greg Dalley Hamilton/Putaruru
027 246 2012
027 200 1964 Alan Miller
027 499 7165 Vanessa Linton
Becky Stanton 027 445 0957
027 498 1942 Te Awamutu/Tokoroa
Brent Pottage Hastings
Avondale Trade/ 027 457 9979 James Douglas
East Tamaki Trade 027 490 6529
Imran Khan Whangamata
027 289 5576 Barry Leighton Feilding
027 493 2018 Kevin Walpole
East Tamaki Trade 027 446 1786
Derek Wang Te Puke
027 459 1734 Dean Cubis Wanganui
027 487 2697 Guido Kroes
Denis Richardson 027 459 1732
027 489 1948 Whakatane
Peter Sauer Ashburton
Tony DeCleene 027 490 4302 Michael Clark
021 528 840 027 652 5271
Taupo
East Tamaki Trade/ Cyrus Joachim Dunedin
Botany/Mt Wellington 027 492 9019 Paul Allison
Blair Wilcock 027 459 1738
027 436 9902 Hawera
Grant Cambie Hornby Trade/
Mark Haddon 027 445 2917 Riccarton/Shirley
027 453 7211 Shaun Parker
Mt Maunganui 027 702 2129
East Tamaki Trade/ Dean Hollamby
Manukau 027 228 6462 Darren Payne
Wini Ryan 027 503 6046
027 246 2003 Roger Corrin
027 246 2004 Martyn Hugo
Sam Marcel 027 240 8950
027 498 1796 Gisborne/Gisborne Trade
Terry Pointon Jeff Scott
Takanini/Papakura/ 027 260 2468
027 445 4375
East Tamaki Trade
Jason Rosnell Lyall Bay/Naenae Blenheim/Nelson
027 246 2010 Gary Sim Stuart Washington
027 246 2014 027 481 0557
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