Discussion continues about adopting the NEC3 contract as the standard form of contract and I still have strong reservations about doing this, as I believe the standard conditions of contract (NZS 3910) has many features that serve the New Zealand construction industry well.
Over the past three to four years most surfacing contractors have suffered losses because of the fluctuations in bitumen prices.
The Contractors’ Federation has developed a healthy industry statement to guide it in its work, and to inform stakeholders of the direction it is looking.
Even more than usual, this year the Heavy Haulage Association has come across roading projects on heavy haul routes that are simply not up top scratch.
Dempsey Wood Civil Contractors took an innovative approach to surmounting the environmental challenges posed by working in watercourses with the result that the project achieved the highest possible environment ratings from start to finish.
A payment schedule is not invalid simply by virtue of the payer having taken an extreme position, for example, stating that the sum payable is nil - a key requriement is that the basis of the calculation is then explained.
The contracting industry has several concerns with the Auckland Regional Contracts Group review of the standard form of contract, believing some conditions are unfair and heavy handed, perhaps even to the point of being hostile towards contractors.
The revised code of practice for cranes came into effect at the beginning of the year and there have been a number of changes made to try and ensure no sector has been disadvantaged.
Liquidated damages must be a ‘genuine pre estimate of loss’ to be enforceable. Myth or reality? Despite this widely recited mantra, largely myth.
As the scope for international companies working within New Zealand increases and contracts are formed with local companies by global logistics suppliers, there is an increasing need for harmonisation of standards and better communication globally.
The federation conducted a survey of job numbers in the industry in late 2009 and found the workforce had declined by almost 12 percent over six months, especially in the latter part of what should have been the strongest phase of the construction season.
Fifteen years after the mandatory tendering out of all roading work, competition is still strong in the sector with 189 different contractors actively winning work in the sector during 2008/09.
What happens when title in the construction site (generally the only asset owned by the development company) is transferred away to a related party, to frustrate a contractor’s efforts at recovery?
Simply loading all risks on to the contractor – regardless of his ability to manage them – is not good risk management. But it does give the legal profession lots of work!
As projects are being prepared for tender and construction you should consider the importance of site investigations and, in particular, who is responsible for locating services.
Given everyone in the industry knows that the civil construction industry goes through severe boom bust cycles, it seems somewhat surreal that we are again heading toward a period of intense construction while tossing out staff on the way so as to ensure the industry stays afloat until the wave gets here.
In a recent judicial review, the Court examined the requirement under the Construction Contracts Act 2002 for an adjudicator to give reasons for his determination. In particular, did a failure to give reasons render an adjudicator’s determination void?
Competition in the tender market is fierce with contracts hard to win, making it more important than ever to plan tender bids and to present them in the most competitive way possible.
After 65 years and with a membership of more than 400 companies, plus a significant number of associate members representing our supply chain, the federation finds itself as the only organisation in New Zealand representing the interests of the whole range of the civil construction and general contracting industry.
Having done your best to avoid getting into disputes, once they arise this does not automatically mean a drawn out and costly exercise in litigation. Despite the provision for mediation in most standard construction contracts, the use of mediation is sporadic, often left to the last minute and, when used, is facilitated in a way which fails to achieve many of the real benefits of mediation.
Risk management allows clients, consultants and contractors to identify, evaluate and analyse the risks associated with a project and then to manage those risks and their impacts on their business operations.
If our clients are better informed, they can make more intelligent and informed purchasing decisions based on market cycles and current conditions.
Obtaining the right to payment under the CCA is only the beginning. If the payer refuses to pay, there are several options for “getting your hands on the money”.
If a serious harm incident occurs in your workplace there are a number of things you should do.
Some important points a contractor should consider when preparing a tender.
If ever there was the time for renewed focus in the use of the Construction Contracts Act it is now.
Many companies have already recognised the link between training and productivity, and have made significant ongoing commitments to upskilling their workforce.
Councils should consider their procurement practices and ensure they have processes that are robust, transparent and provide real value for money while maintaining integrity through the tender process.
There is a plethora of mismatched health and safety delivery and management systems and qualifications in the New Zealand construction industry.
It is time the industry practiced what it preaches. It is time we stopped promoting one form of contract as being better than another and it is time we worked collaboratively within the industry.
Parties will invariably find ways to avoid paying their debts under the Construction Contracts Act. One tactic we’re seeing parties employ more frequently to frustrate prompt payment is the use of judicial review procedures in the High Court.
Tuffstuds are chromium carbide laden wear resistant alloy studs that arc welded onto wear surfaces to greatly increase their service life.
An on-going study between the University of Auckland and Actronic Technologies illustrates huge savings in fuel, equipment and labour costs per tonne of material moved by using Loadrite onboard electronic weighing systems to optimise truck loading.
NZS 3910 was written specifically for the New Zealand construction industry and is well understood by the industry. This has resulted in fewer contractual arguments, particularly when the standard form is used.
To maintain the strength and value of your intellectual property, and so your market position, it is important to take a proactive attitude.
The Local Government Act dealing with the transitional process for Auckland governance, has important implications for those who currently, or intend to, contract with a local government organisation in the Auckland region.
Businesses that are market leaders usually have not only a good brand but also a clear advantage over their competitors relating to some type of innovation, new technology and/or innovative business model.
The professionalism displayed at the Fletcher/MacDow open day by both organisations’ employees was impressive. Was it a coincidence that these businesses managed to acquire such a committed, self motivated team with great pride in the work and in the companies they worked for? I think not.
Did you hear the one about the developer, the contractor, the subcontractor and the engineer?
There are a number of significant infrastructure projects either under way, or coming up. However, in many cases, it is the larger players that are positioning to pick up these contracts and there is still a hiatus for many of the small to medium-sized contracting businesses.
Why should businesses should obtain trademark registration for their names and any other important brands.
The need for ‘complete’ contract documentation cannot be stressed enough following two cases in which I have been involved to determine a resolution of disputes.
Let’s face it, developing business proposals or tenders is probably not your core business. But the difference between a great tender - and an average one - can have a significant impact on your business success.
Dispute resolution is a major issue within the construction industry and is one that has many facets. Why do disputes occur and how can their occurrence be minimised?
A recent decision delivered in the Court of Appeal, Laywood & Rees v Holmes Construction Wellington Limited, is arguably the most important decision under the Construction Contracts Act 2002 (CCA) to date.
Traditionally a contractor who wishes to suspend work for non‑payment by a principal must rely on the terms of the contract (typically being NZS3910).
The Government’s long awaited announcement on bringing forward infrastructure spending has finally been made.
For many contractors retentions are a major cash flow challenge. Having funds retained for up to two years is bound to make your eyes water in difficult times.
Bridge research has declined significantly over the last decade and there is a real need for establishing an active and focused bridge research programme if we are going to be able to face future challenges.
The Tertiary Education Commission is currently running an awareness campaign regarding literacy needs in the workplace (Skills Highway). But how relevant is this for infrastructure?
One of the National Party’s key election platforms was to simplify and streamline the Resource Management Act 1991 (RMA). Since its enactment the Act has come under significant criticism.
We are regaled on a daily basis about our weak economy and the recession that we are weathering. So how do you manage your business through hard times?
One thing on which there seems to be broad agreement is that infrastructure investment could have a role, both in softening the recession in the near-term, and in underpinning growth over the longer-run.
The recent volatility of the foreign currency exchange rates with the New Zealand dollar has impacted on the cost of imported goods as well as the cost of living. Couple these with the increased cost of diesel, and contractors need to be very careful with the rates that jobs are priced at – especially plant rates.
Over recent months there has been much discussion regarding the carbon footprint of different pavement types, namely concrete vs. asphalt. Judging by the various opinions expressed, it appears that there are strongly opposing views.
The recent ‘Alliancing – The Real Story’ conference in Auckland, was a timely examination of this procurement technique after a short, but so far successful, history in New Zealand.
Funding infrastructure construction is an option that not only primes the pump economically, but also provides sound long term economic benefits for the country.
Unpredictable weather and volatile financial markets pose serious threats to the rural contracting sector as well as many other parts of the economy.
Contractors need to know how to value variations – especially when related to on- and off-site overheads, profit percentages and the working day rate – and apply them.
Safety-related tendencies aren’t easy to detect up-front at interviews or referee checks and it’s not as if employers can put candidates out on the road and watch them over a period of time to find out.
A new era of shoring safety and efficiency in trench construction has hit our shores with the arrival of the Krings DGVP double slide rail.
A new scourge has arisen in the war against employees who ‘pull sickies’ – doctorsnotestore.com. This website purports to sell New Zealand medical certificates for ‘novelty purposes’.
Worldwide, people with practical skills are in short supply and the problem is getting worse. It is increasingly difficult to recruit experienced people. From now on we are largely going to have to grow our own talent. To do this will require our vocational training system to deliver.
Questions about receiving payment for work done are often raised by smaller contractors. In 2002 the Government passed legislation to help contractors, particularly small operators and those performing subcontract works, in the form of the Construction Contracts Act.
The Government released its Transport Strategy and Policy Statement on transport in early August. The transport strategy looks out to 2040 while the policy statement covers the next five years and indicates funding levels for a further five years.
A willingness to apply the same safety focus to its community as it does to its labour force has netted the Bay of Plenty’s division of Fulton Hogan a top spot at the New Zealand Community Safety and Injury Prevention Awards.
Pioneer brand products financial controller Jason Morris outlines a simple tool to calculate the true cost of contracting services.
Local government is our sector’s largest customer collectively, and is therefore critical to our success. In recent times, however, there have been a number of developments that are making life difficult for some contractors who undertake work for local authorities.
Contractors tendering for projects that have a significant machinery component should be asking for cost fluctuation clauses to be included in the contract.
The Government has finally succeeded in buying back the rail operations activities from Toll Holdings, and, no matter what your views might be about the politics of the decision, it should be good for the civil construction sector.
One of the most important tasks when setting up a contract is to read the documentation to fully understand what you’re signing up for.
The Government has been taking a slamming over its ambitious ‘planet saving’ emissions trading scheme as the public becomes more aware of its cost to the economy.
Crunch time is approaching for New Zealanders if they want to continue building houses and roads at a reasonable cost, says Aggregate and Quarrying Association president, JAMES BOYCE.
As the saying goes – it is five times harder to find new customers than retain old ones. Likewise, it’s a lot harder and more expensive to recruit new staff than to keep existing ones.
A number of municipal authorities are looking to change the core requirements of NZS 3910-2003 and, from a bonding point of view, some of the changes have quite wide ramifications.
The Government's policy statement (GPS) on transport is to be issued every three years and will show priorities and funding levels for transport. Over recent months the Government sought input into its first GPS, and Roading New Zealand obliged.
Fuel taxes are in the news again with lots of political rhetoric from all sides of the argument about the inaffordability of these taxes in times of high fuel prices, a slowing economy and an imminent election.
The New Zealand concrete industry has long promoted the low maintenance, long-life and reduced fuel consumption benefits associated with constructing concrete road pavements. Yet, time and time again, decision makers have specified flexible pavements as a result of an apparent short-term strategy to minimise initial cost.
The cost and availability of funds for business have tightened considerably. Of concern to the New Zealand economy, heavily dominated by small to medium sized businesses, is the potential reduction in the availability of funding.
Are bonds just another bureaucratic impediment to doing business or is there another side to the story? Charles Sampson explains how bonds work.
Given the backlog of infrastructure projects in New Zealand, it makes sense to look at all options for delivering new construction projects.
Paul Buetow offers a legal view on the hot topic of PPPs.
The sub-prime situation in the US has already had a major affect on our economy and the construction market. Richard Michael looks at the immediate and ongoing effects on contractors and the wider community.
New regulations overseas that limit machine and vehicle vibrations have encouraged equipment manufacturers to develop all sorts of technologies to improve operator comfort levels.
The announcement of an enquiry to look at the viability of a Public Private Partnership (PPP) to build the Waterview Connection project in Auckland is a positive step in completing the Western Ring Road route. It will be the largest single transport infrastructure project in New Zealand. Even though the actual physical start of project is still sometime away, this is certainly a step in the right direction.
Over the past six months bitumen prices have risen around 30 percent to almost $1000 per tonne. Never before have bitumen prices been so high.
Who is responsible for locating services in the road reserve or, for that matter, on any site?
Principles relating to drug and alcohol policies were set out by the Employment Court in 2004 in NZ Amalgamated Engineering Printing and Manufacturing Union Inc v Air NZ Ltd. This case remains the leading decision relating to drug and alcohol polices.
Looking after your back while you’re working is key to being able to earn a living over the long-term. Everyone can get the odd backache after a day on the job but if you have chronic or acute pain, you need to visit your GP.
Publicity stunt protests aside, alledged greenhouse gas polluters are being called on to account from a number of quarters, and it could eventually effect their bottom line, says Chapman Tripp partner, Brigid McArthur.
Workplace fatigue can be fatal, and in a industry that is inherently dangerous it is essential that employers and employees know the signs of fatigue and the solutions to problems that arise from a lack of sleep.
Chris Olsen gives his views on the Land Transport Management Amendment Bill currently passing through the Select Committee process.
We all know the civil construction industry has an ageing workforce. Many of you have been working outdoors in all weather for years and years. A lot of sun damage has already occurred and the results are possibly showing on your skin. And some of this damage could kill you.
There is no doubt at the moment that the labour market is extremely tight. Finding skilled staff is increasingly difficult, this means it's important to retain good employees.
What do you do when one of your staff resigns to go and work for one of your competitors?
There has been renewed interest in the subject of public private partnerships (PPPs) after comments by the leader of the opposition, John Key. Contractors' Federation CEO Richard Michael looks at what they are all about, some of the politics around them and where his association stands on all of this.
LTNZ released its Stage 1 and Stage 2 reports on the review of roading physical works and professional services procurement procedures. Roading New Zealand CEO Chris Olsen summarises his organisation's suggestions input into this review.
Charles Finny from the Wellington Chamber of Commerce explains why climate change demands the essential links in and out of the capital city are upgraded so there are more and better roads.
Paul Buetow and Brigid McDonald of Kensington Swan Lawyers explain how the call-in process can be used to fast-track important infrastructure projects.
As we head into the construction season, contractors should review their contractual arrangements compared with those that are commonly used in the industry.
The excavation of a tunnel joining Europe and Africa, deep below the Strait of Gibraltar, could start as early as next year. This follow the recent commissioning by Spain and Morocco of detailed engineering studies.
For hire - Highly motivated worker, eager to start, strong work ethic, drug and alcohol free and punctuality guaranteed. Sound too good to be true?
Malcolm McDonald knows a bargain when it comes to excavators. He has been buying and trading them through his company, McDonald Construction, for a long time. However, a recent online auction went awry.
Global demand for steel, oil and rubber are impacting the cost of construction. How do you account for cost increases over the duration of a project?
Under traditional contracts common in the construction industry the engineer has a dual role, which can often result in disputes.
In a recent high-profile court case Manawatu Waste was fined $10,000 and ordered to pay reparations of $30,000 to one of its employees after a tragic accident at its refuse transfer station.
Contract documents may try to modify what is or isn't a variation.
From minor safety improvements to major new motorways, Transit New Zealand's goal in the construction of any state highway project is to achieve value for money. But while it's important to consider cost and quality factors such as safety, community and environmental outcomes for any project, at the heart of value-creation and best-practice procurement is the principle of risk allocation.
Court considers extreme payment schedules
The code of practice for cranes
Myths and realities of liquidated damages
Is an adjudicator required to provide reasoned reasons?
Towards a more informed market
Getting your hands on the money
Guide to incident investigation
The future of concrete bridges
The transport strategy and contractors
The future of rural contracting
Rail buy-back good news for contractors
Future investment
