FMANZ e-mag banner2
August 2014 issue                                                                                                      Latest news, events & papers

In This Issue


  • FM Online
    Jack Crutzen surfs the net for current FM trends.

  • Legal Update
    Everything you need to know about construction contracts.

  • Congratulations
    Two more members become accredited.

  • Wormald Connect 
    A new online tool to help you keep track of your fire equipment maintenance and servicing.

  • Water Survey
    Researchers call for feedback on the use of rainwater and greywater in commercial buildings.

First FM Master Classes


Be part of FM history when FM education launches in NZ

The only first of four Master Classes starts next month, on September 5. The classes are a joint initiative between AUT University and FMANZ and will focus on small groups in an interactive workshop environment. They will be taught by AUT lecturers and guest speakers using the latest FM material.

The four two-day Master Classes are being held at AUT University on Fridays between September and December, and are proving to be popular so get in quick!  You may enrol for as many of the classes as you like. Attendance certificates will be awarded on completion of each two-day module.

Suggested pre-course reading will include recent articles and YouTube videos. Participants will also be asked to submit self-assessment questionnaires before the Master Class to help tailor the course material to the needs of the participants.

The two-day classes are:

  • Professional and Team Management
    Improve your personal and team leadership styles
    September 5 and September 26
     
  • Facilities and Asset Management
    Improve your understanding of facilities and asset management
    September 19 and October 17.
     
  • Procurement and Supplier Management
    Improve your understanding of tender methods and managing suppliers
    October 10 and November 7.
     
  • Leadership, Strategy and Change Management
    Improve strategic thinking and develop better boardroom connection
    November 21 and December 12

Take a positive step forward in your career and enrol today. 

 

Click Here to Register.....
 

 

BACK TO TOP

 

Candid Camera


Photos from recent events...
 

  • Vanessa Stoddart shared her experiences on how to manage your team, but also your work/life balance during our latest Women in FM event. The event was kindly sponsored by Fire Security Services, with an introduction by another woman in FM, Sarah Nathan. 
WomenFM 1(copy) WomenFM FireSecurity SarahNathan(copy)
FMANZ's June Women in FM Event
 
 
  • FMANZ celebrated World FM Day with a shared Auckland/Wellington event at Beca, looking at different aspects and tools in the Facilities Management industry. 
BecaFMDay 1(copy) BecaFMDay 2(copy)
   
BecaFMDay 3(copy) BecaFMDay 4(copy)
FMANZ World FM Day Event at Beca

 
  • Waste Management kindly hosted an FMANZ Auckland 'After 5' event, with a presentation and visit to their Technical Services Site in East Tamaki. 
Transpac Visit pic1(copy) Transpac Visit pic2(copy)
 
Transpac Visit pic5(copy)
Transpac Visit pic3(copy) Transpac Visit pic4(copy)
Waste Management Site Visit
 
 
  • The FMANZ Wellington branch held its very successful 3rd Annual Quiz Night, kindly sponsored by Resene.

Letter from Des Brennan, CEO


Capability Building and Professional Recognition


Des BrennanMaster Classes  - Carpe Diem!
 
You will see a number of references to the AUT University/FMANZ series of Master Classes in this edition of FMANZ e-mag. This is an important and significant step for FM in New Zealand. It is important because it responds to member feedback via research and anecdotally. It is significant because it is FMANZ’s first step in formalising an educational pathway aligned to its Professional Competencies Framework. I encourage you to seize this opportunity to advance both your professional development and your career in FM. Register here.
 
Des Brennan, CEO, FMANZ

Service Management – Leading Thinking
 
I was pleased to read a recent FM white paper forwarded to me by Jack Crutzen. The paper published by ISS - Service Management 3.0 (see link below) looks to the next generation of service provision in a competitive market. The paper clearly and thoroughly examines the key elements of customer service and relates these back to corporate vision, purpose, values and leadership. The authors of this paper find that the companies who do deliver excellent service are superior in the areas of people, processes, leadership and culture.

The approach examines value creation for the customer and how to exceed expectations. The elements of customer value creation are considered to be Service Culture, Employee Engagement, Service Quality and Customer Experience. By creating a common vision, mission and values in the organisation alignment is achieved so that everyone is working towards the same goal. All of this fits perfectly with Jim Collin’s revolutionary research, presented in his book Built to Last – Successful Habits of Visionary Companies.

http://www.issworld.com/en/media-library/whitepapers
 
FM Salary Survey Covering OZ and NZ - Now Open
 
The 2014 Facilities Management Salary Survey covering the roles, responsibilities and employment conditions of FM professionals in Australia and New Zealand is now open. We took up this offer from FMA to create a picture of a bigger market. This year’s survey will build on the 2012 FMA survey to take a deeper look at the industry and tease out emerging trends. The information will be made available to members in an appropriate form with the full survey available at a fee yet to be determined. Click here to take the survey…

Social Media – FMANZ Moving In

For some time FMANZ has had a LinkedIn group. This has enabled discussion of topics of interest to group members and the ability to publicise events and services. We have now added FMANZ’s YouTube channel. This provides opportunity to present interesting FM video via links to select third party content, and to post content that we originate. We can also promote products and services.

Facebook has also been added to the mix. Here again we wish to present informing content which engages members in online dialogue and experiences. It is hoped that members and sponsors will be a rich source of content provided for these channels.  Thoughts and suggestions are very welcome as we open these channels  - we are not experts but we will have a go!

Building information Modelling – NZ Handbook Released

The Building & Construction Productivity Partnership released the New Zealand BIM Handbook on July 29. The use of this handbook is supported by:

Facilities Management Association of New Zealand (FMANZ)
New Zealand Institute of Architects (NZIA)

Association of Consulting Engineers New Zealand (ACENZ)
New Zealand Institute of Building (NZIOB)
 
BIM is defined as the digital representation of the complete physical & functional characteristics of a built asset – everything from bridges to buildings. It involves creating a model with real-life attributes within a computer and sharing that information to optimise the design, construction & operation of that asset.

The handbook is a free resource and can be downloaded via the following link:  New-Zealand-BIM-Handbook.pdf

The Productivity Partnership commissioned it, and the BIM Acceleration Committee, a voluntary industry and government body, produced it with extensive industry input and the support of BRANZ. The Productivity Partnership, a joint government-industry organisation, was set up in 2011 to address low building and construction productivity – very important economically.

This handbook is a hugely valuable resource. Given that FM oversees 87% of whole of life costs of an asset (handbook P7), BIM presents a unique strategic opportunity for our members to create value for their organisations and to gain recognition upstairs. 

Chairman - Stepping Down

Jason Happy will stand down as FMANZ chairman at the Association's AGM on August 22. He has given outstanding and generous service to FMANZ since its inception. He is one of its founding fathers. I want to personally acknowledge his support, pragmatism, calmness and vision.
 

Des Signature(copy)
 
 

Q & A with Jason Happy


Outgoing Chairman reflects on the past two years

Jason Happy(copy)One of FMANZ’s founders, Jason has been a board member for six years and chairperson for the past two years. He is stepping down from the board at the AGM this month.  

Jason describes himself as “perhaps rather unusually, a deliberate facilities manager”.  He holds a Master of Architecture degree specialising in Facilities Management from Bartlett College in the UK, as well as an honours degree in Mechanical Engineering from Auckland University.

Before moving into FM 18 years ago, Jason practised as a professional engineer both here and overseas. He believes mechanical engineering was a valuable lead into facilities management, as generally engineers and facilities managers “like to see buildings running really well".  


Jason Happy

In his role as National Facilities Manager for Kiwi Income Property Trust, Jason is responsible for ensuring the company’s existing properties and new developments are market-leading performers in operational efficiency and effectiveness.  He also manages Kiwi Property’s health and safety and environmental programmes.

Q: You have been involved in FMANZ from the very beginning. What was your vision for the Association?
It was three-pronged - we wanted to give facilities management an identity in New Zealand, provide a vehicle for collective development through networking and the sharing of knowledge and skills, and ultimately, we hoped to give facilities management a voice at a national level.

Q: Do you think that vision has been achieved?
Yes, in part. We have given facilities management in New Zealand a real identity. The collective development is a work in progress, although already we have delivered a means to recognise professional competency and have identified a clear need for FM education given the number of “accidental Facilities Managers”. To address the latter we are in the final phases of setting up an educational structure through which we can all develop our knowledge. Developing a national voice has yet to be explored but that can only really come once we have delivered a credible education offer thereby providing a clear development pathway. In short, we’re well advanced in two out of the three areas and the third will come as we build our credibility.

Q: What are the key roles and responsibilities of facilities managers as you see them?
Our key role is ensuring facilities are effective – that is, they do the job they need to do; and efficient – that is, they use the minimum amount of resources to do that job.  Something like 90% of our lives is spent indoors, so effective facilities have huge benefits both at a societal and individual level.  A lot of organisations have facilities managers without realising it.  For instance is the property manager or caretaker at a large secondary school, age care facility or factory a facilities manager? Absolutely, and they share a common set of needs in terms of skill sets!   

Q: What do you think we do well in New Zealand in terms of facilities management?
There’s a huge scale difference between New Zealand and countries with much larger populations, such as the UK. For example, British Telecom built four buildings around London, each 20,000m2, when I was working in the UK. That’s 80,000m2 for one organisation in one city! The largest building in New Zealand is around 40,000m2.  As a result, facilities managers in the UK usually have a great depth of knowledge in a particular area.   Having said that, because we manage smaller-scale facilities in New Zealand, our facilities managers often have a broader skill set and can adapt very quickly to change.  To use the old figure of speech, we tend to be a jack of all trades rather than a master of one.
 
Q: Where do you think we fall short?
We can sometimes lack the depth of knowledge when compared to our overseas counterparts. As a result, our practices can sometimes be a bit thin.  Facilities managers in larger countries can have a deeper understanding in one area in which they specialise, although the downside is they can be slower-moving and slower to adapt.

Q: What do you think we as an industry can learn from overseas?
Standards, professional practices and tremendous expertise can be drawn from overseas. Learning from other countries, we can improve our practices and set standards. I believe FMANZ is an excellent vehicle for doing this.

Q: What have some of the big challenges and issues been for facilities managers in recent times?
The Global Financial Crisis has put a lot of pressure on costs – it’s not unheard of for facilities managers to be in their third year of operational expenditure cuts. It’s hard to have facilities humming under those kinds of constraints. We’ve also lived the last 4-5 years under an ever-tightening ‘compliance regime’. The governmental response to the Christchurch earthquakes, Pike River and so on has seen higher compliance standards to such things as health and safety, fire safety etc. Seeing a way through all of these changes has been challenging.

Q: What are some of the challenges the industry is facing going forward?
The depth and breadth of understanding we need isn’t always there. We need to try to move from a purely cost management equation to being regarded as adding to an organisation’s momentum, output and value. We need to help organisations extract better outcomes by changing the way we use facilities. For example, in shopping malls the rise of online shopping has meant a shift to malls as entertainment centres and social hubs.   Facilities and management of facilities have had to adapt to support this change i.e. longer hours of trade, cleanliness and security in more permeable malls, ambience delivery etc. It’s simply not solely about shopping any more.

Q: What is it that FM as an industry should be aiming for?
As an industry, we need to find the ‘value lever’ to turn conversations around FM away from the negative cost control to the positive and over-quoted ‘value add’.  Currently we know we’re doing well when there’s radio silence from management, whereas we need the powers-that-be to more continuously measure and acknowledge the worth of FM.

Q: How far along that road do you think we are?
Not far; it’s a work in progress. With the GFC we have all been operating in a very cost-focused environment which has elevated FM but in a relatively negative sense. Ironically, the current compliance focus could be seen as an opportunity. One way to demonstrate value is risk-mitigation and increased compliance affords us an opportunity to present a value case in risk mitigation. Long-term, we need to find a better value lever than this, although, in the short-term this isn’t a bad route to Rome.  Hopefully to the Senate and not to the Colosseum as lion bait!
 

 
 

2014 AGM and 2015 Summit


Two dates to put in your diary
 

  • The FMANZ Summit will be held on 6 & 7 May next year at Villa Maria, Auckland. The summit committee has already met and will be working hard over the upcoming months to secure engaging speakers and lock everything in place for another successful summit.
     
  • The FMANZ AGM is to be held on Friday 22 August at 7.20 am (following breakfast at 7.00 am) at The Bluestone Room, 9 - 11 Durham Lane in Auckland. The AGM will be held before the Auckland National Breakfast Seminar.
     
    The National Breakfast Seminar will also be held in Wellington on Friday 15 August at The Green Man Pub and in Christchurch on Friday 29 August at Your Place Café and Bar.
     
    The topic of the seminar is Auckland Airport: Present and Future. Mark Thomson, General Manager Property, will describe the vision for Auckland Airport in detail and talk about the components of one of New Zealand's key investment programmes. For the Wellington and Christchurch seminars this part of the presentation will be covered by Campbell Jensen, Manager – Master Planning.  Paul Vaughan, Facilities Manager – Property Team, will consider an FM perspective of managing the growing commercial property portfolio.
     
    To find out more and/or to register, click here: FMANZ August National Breakfasts

    For details on the conduct of the AGM including composition, notices, quorum, voting rights, elections and general business, members can refer to the Constitution. A copy can be found on the FMANZ website: FMANZ Constitution
 
 

Dockside Facilities Management


Behind the scenes of the America's Cup

Team NZ Boat(copy)
Emirates Team New Zealand on the water in San Francisco.

As Operations/Logistics Manager for Emirates Team New Zealand, yachtsman Ian Stewart knows all about managing facilities. He was in charge of relocating the 120-strong team and their families (280 people in total) from Auckland to San Francisco and setting up the dockside team base.

Ian Stewart with Tom Cruise(copy)














Ian Stewart with actor Tom Cruise who visited the team
“My job was to make sure we hit the ground running,” says Ian. “Like any successful entity, our valuable commodities are time, people and money. We needed to utilise every day possible on the water.”

Touching down in San Francisco in mid-March last year, Ian and his team had three months to set everything up in order to be on the water by mid-May. “We couldn’t afford to have any hiccups; the consequence of stuffing up was massive.”

Helpfully, the team had learnt a lot from the challenges in Valencia where they had streamlined the set-up logistics; what Ian calls, “the whole ‘plug and play’ mentality”.

“Spain laid the foundations for us to be able to operate in two different hemispheres.”

The team headquarters in San Francisco consisted of the same 70 shipping containers and several existing structures the team had been operating from in Spain plus the all-important wing shed - a portable tent structure system set up in New Zealand to accommodate the new AC72 yachts which have wings bigger than those of a 747.

Team NZ Wing Shed(copy)
A customised wing shed was needed for the AC72 yachts which have longer wings than those of a 747.

 “The main platform had containers for everything, ongoing from Spain - the workshop, engineering, boat builders, the physio room, sail design office, showers, lockers, washing and drying room … Pretty much everything was containerised which meant the guys were working in much the same environment as they had been in other races.”

The containers were set up around the dining room, meeting room and performance analysis room, which collectively became the team hub.
 

Team NZ Gear Room(copy)
A container becomes the gear room.
Team NZ Dining Room(copy)
The dining area became the hub for Team New Zealand.

They also brought in a large waka, built by Ngati Whatua for the Rugby World Cup, which was used as the hospitality facility for sponsor and government engagements. “Sitting on the pier in San Francisco, it looked really striking.”

The turnaround time from sailing in Auckland to setting up in California was “remarkable”, says Ian. “We shared a pier with the Italians and stopped sailing at home a month after them and started sailing in San Fran two weeks before them. They were gobsmacked at how we rolled into town and set up so effortlessly even though the footprint of our entire office area and team meeting room and dining area was the same as their dining room!”

But it wasn’t plain sailing by any stretch of the imagination. Unlike Spain, where Team New Zealand had “a wonderful event facility”, in San Francisco they were faced with an empty, derelict pier; an old cargo wharf which usually operated as a car park for the Giants baseball fans. “Which meant the fans immediately disliked us!” There was no power, no water, no waste. “Virtually nothing,” remembers Ian.

Team NZ Pier 32
Pier 32 as it looked before Ian and his team got to work.

The facilities in San Francisco had hinged on a plan for the event authority to develop the old pier 32 which didn’t go according to plan. “The cup-holders had tried to deal with the City and secure a long-term lease but the pier was structurally riddled and the whole deal fell apart. Because of the structural instability of the wharf, moving containers, cranes and trucks on and off site was an engineering project which required approval from the Port Authority.”

However, the biggest hurdle wasn’t the structure of the wharf but the Longshoreman Union. “Unbeknown to us, we inherited an agreement from the event authority to use local Longshoreman union labour for all movements on and off the piers as well as any contracting work on the pier.”

Unlike the Italians, who contracted labour out (“they hired some pretty hefty American companies”), Emirates Team New Zealand had planned to – and did – erect and set-up the containers and other structures themselves. In protest, the union put a security ring-fence around the pier. “Pier 32 had been under their jurisdiction since way back in the early days of San Francisco when that area was the commercial port so we certainly had an understanding of their point of view,” says Ian. “I spent a lot of time walking the union reps around the premises showing them the guys building the loft etcetera were part of the team."

Team NZ Protests
Longshoreman Union protests.

 “We got on with the Unions just fine due to the fact we were straight-up, do-it-yourself Kiwis and not a large corporate trying to pull the wool over their eyes.  We were able to negotiate a deal which kept both parties happy as well as forge a fairly amicable association. In the end, the union boss would drop beer down to us on a Friday afternoon.

“But it was an expensive and somewhat clunky exercise - getting 70 containers on and off the wharf - and something we had not foreseen with our budgets.” 

Another obstacle was the consenting process needed to put in a simple dock system, for example. “San Francisco City is fantastic but fairly wrapped up in some heavy bureaucracy.”

As you’d expect in the birthplace of flower power (“the hippies are all grown up and reproducing”), there were many conservation and environmental hoops to jump through. “Everything was protected – seals, red herrings… I’m all for that but it did mean we had to find our way through a lot of bureaucracy. We would wait for the next protection society to turn up on our doorstep – the red herring monitoring people were one of them,” recalls Ian.

"I'm all for protecting the environment and understand it's about ensuring the issues are addressed and everyone is comfortable with what we're doing but sometimes, in practicality, it gets in the way. Plus the cost was huge.”

The Italians had a Plan B – to move across the harbour – if it all got too hard, but there was no Plan B for Team New Zealand. “For our stakeholders, our set-up needed to be front and centre.”

Once the actual racing was underway, Ian’s thoughts turned to ‘how would we be getting out of San Francisco?’ He knew the pier had to be left absolutely barren as per their lease agreement but wasn’t sure what kind of mood they would be in packing up. Unfortunately, the result of the racing meant the 'pack-up' was a much more sombre affair than they'd hoped. “It was gutting.”
 

Team NZ from Water(copy)
Pier 32 from the water.
Team Nz Performance Room(copy)
The performance analysis room.

A professional yachtsman for many years, Ian knows from experience what makes a good shore base. “Once you understand boats, you understand what facilities are needed to run them properly.”

He has competed in two Volvo World Races (Whitbread Round the World) as helmsman and trimmer aboard Tokio with Chris Dickson 93-94 and with Grant Dalton aboard Merit Cup 97-98. In 1995 he raced in the America’s Cup onboard Chris Dickson’s lead team Tag Heuer, then went on to become shore and team manager for Kevin Shoebridge’s 2000-2001 Volvo Ocean Race campaign boat Tyco before joining Team New Zealand after the 2003 Amerca’s Cup.

The location of the 2017 challenge is still to be announced, with San Francisco still a distant possibility. The other options include San Diego and Bermuda.  In the meantime, the containers are all stacked up on the forecourt of Emirates Team New Zealand’s Auckland base, ready for the next relocation.

“Every time we get a bit better.”

For a short guided tour of Emirates Team New Zealand’s facilities – a work in progress – click here

FMANZ Embraces Social Media


FMANZ launches its Facebook page and YouTube channel


FMANZ now has a Facebook page and YouTube channel! Included on the channel are links to FM TV, an industry partnership formed by ITN Productions and the BIFM to promote facilities management as a professional discipline; and a case study which looks at the concept of ‘The Changing Workplace’, which was developed by Tjeu Verheijen and OCS Workplaces. The concept has been applied in the Maastricht office of Vodafone in the Netherlands, and showcased in a video which we link to.



Check out our YouTube channel:
 

YouTube icon(copy)


and FMANZ’s Facebook page:

 

Facebook icon(copy)

If you come across any videos, links, photos, news, research or reports you think members would be interested in, we can put them in the social media mix. We’d love to hear from you. Please contact Marjolein de Graaf at events@fmanz.org

 

Spotlight on INSCAPE


Focusing on people and the environment

 
One of FMANZ’s Diamond sponsors, Inscape is a family-run indoor plant hire and landscape company, owned and operated by husband-and-wife team Richard and Sharron Furniss. Their daughter Courtney is the company’s National Accounts Manager.

In business since 1998, Inscape is a values-based company that focuses on long term relationships and working partnerships with their customers. “It may sound glib, but we treat people as we’d like to be treated and we do what we say we’ll do,” says Richard.

As well as a focus on customer satisfaction, Inscape believes it has a duty of care towards the environment; Richard’s favourite quote reflects this belief: “You are a guest of nature. Behave!” (Frederick Hundertwasser)
 
Richard Furniss
Richard Furniss,
Managing Director of Inscape
Richard, who graduated from both Lincoln and Auckland Universities, is passionate about greening the indoors. As he says on their website: “We believe that the way forward in today’s modern society is to infuse grey architecture with flecks of green, to create energy and life where there was once a soulless edifice of concrete and steel.”

“One of the things people don’t get is there is ugly stuff in the atmosphere which plants - or more specifically the soil they’re grown in - can remove.” He explains that the soil acts like a liver, breaking down toxins such as volatile organic compounds (VOCs) and CO2 from the air. “The plant foliage (the heart) takes the toxins out of the air, but it’s the soil (the liver) that breaks them down.” To find out more about the benefits of potted-plants on indoor air quality and the wellbeing of building occupants, click here: IEQ.

Cost Justification

A savvy businessman, Richard is aware that adding to the aesthetics of a building - or even improving corporate image - isn’t enough to justify indoor plants, cost-wise, so on their website, Inscape has cost-justification information based on scientific studies.

To download ‘office plants cost justification’ spreadsheets and punch in your own figures, click here:
Cost Justification

Richard encourages people to give him or his team a call to discuss cost justification - or any issues - further. “If people have any questions, we’d love them to pick up the phone and talk to us, or email us if they prefer.”

The Triple Bottom Line

Unsurprisingly for someone with a successful business and a passion for people and the environment, Richard talks a lot about the Triple Bottom Line (TBL), which an organisation publishes in order to depict its economic, ecological and social success. This report informs stakeholders of a company’s approach to managing its impact and behaviour in terms of profit, planet and people, Richard explains. “And the bottom line is that TBL can be improved with indoor plants.”

Indoor plants improve a company’s profit by decreasing money being spent on building repairs, reducing employee absenteeism (studies have found that staff sick leave was reduced by over 60% when indoor plants were installed) and increasing worker productivity (studies have shown that interior plants may improve worker productivity by 12%), while attaining and retaining top employees. Inscape’s conclusion: “In an office of 10, staff productivity gains of $60,000 are achieved.”

A company’s impact on the planet can also be improved by using indoor plants. Indoor plants improve the indoor air quality of workspaces and reduce energy consumption by keeping interior air at a comfortable temperature level and humidity level, therefore reducing the need for air conditioning and other modern climate control systems. Plus, as we’ve seen above, indoor plants have been scientifically proven to be effective at removing harmful particles and toxins from interior air.

“And indoor plants make a positive difference to employees. Since they improve the indoor environment quality of workspaces it logically follows that they aid in the health and wellbeing of staff. They improve quality of life not only by creating healthy air spaces but by also reducing stress levels.”
 
Botany Town Plants(copy)
A living wall in Botany Town Centre
Christchurch City Council Plants(copy)
Christchurch City Council
Emirates Lounge(copy)
Emirates Lounge,
Auckland International Airport

Top Staff

Inscape employs 40 staff spread across Invercargill, Dunedin, Queenstown, Christchurch, Kaikoura, Picton, Nelson, Wellington and Auckland. All staff are well-educated and qualified, with key staff being Green Star Accredited Professionals. Inscape believes in eco-sourcing plants and employing experienced experts with a sound knowledge of the local climate and habitats.  “There is a saying in horticulture that you need to have seen at least five summers and winters in a place to really know what plants will grow well there.”

Inscape services a wide range of blue chip companies, including most destination retailers in New Zealand. “We work with companies with a large footprint, either inner city or across New Zealand; companies who know what business they’re in and understand asset management versus cost management.”

Wholesale Pots

The Furniss family also owns Tauira, an eco-friendly designer pot and outdoor furniture company they started in 2009 to source quality European-made pots for Inscape. They also sell wholesale across Australasia.
 
Pots(copy)
 
At Miele, Auckland.
Pots sourced from Tauira.
“We can purchase planters at wholesale prices which is good news for our customers,” says Richard. The stylish pots are also a point of difference and enable Inscape to bypass the “unpleasant habits” of pots (for example, ceramic pots tend to crack and leak and concrete pots are porous). All Tauira pots are made from recycled components including ‘second-life’ plastics.

With both businesses, Richard and Sharron are constantly looking for ways to innovate and re-engineer to become as environmentally-friendly as possible, while avoiding ‘green-wash’. “Everyone can always do better as far as the environment goes,” Richard says, “but we do things that make a real difference such as reducing the carbon footprint of our fleet by using small energy-efficient cars rather than large vans.”

When it comes to getting rid of their old pots, the focus is once again on people and the environment.  They are given to Women’s Refuge who then sells them on TradeMe to raise much-needed funds. So far they have raised about $20,000 this way. “It’s a community approach where everyone gets involved.”

 
To find out more about how indoor plants can help your business, phone 0508 INSCAPE

Richard Furniss can be contacted directly on 0212240064 or Richard@inscape.net.nz

Websites:
www.inscape.net.nz
www.tauira.com/

To find out more about the benefits of indoor plants, check out www.ieq.co.nz
 

Building Showcase: Ceres Organics 


Ceres' new award-winning building leads by example

Ceres Office and factory lowres(copy)
Ceres Office and Factory

Ceres Organics has a new purpose-built premises in Auckland’s Mt Wellington which fittingly, for an organically-certified and Eco-Social-certified company embraces the latest in sustainability design.

 “It’s a really strong statement of who we are,” says David King, one of Ceres’ founders and directors.

Designed by Williams Architects, the new office (1000m2) and warehouse facility (4500m2) features a rainwater collection system along with low water usage fittings and a solar hot water system. The need for mechanical air conditioning and artificial lighting is minimised with extensive use of natural ventilation and daylight harvesting.

Ceres StairsA fully automated building management system (BMS) monitors lighting, CO2 levels, and water and energy usage. There is also a dedicated recycling area to minimise the volume of waste that would potentially end up in landfill.  Plants thrive in the open, light-filled office area and a two-storeyed green wall covers one side of the atrium reception area.

Every aspect of the premises has had the sustainability spotlight shone on it, from location (it’s situated close to public transport - a ‘must-have’ for staff) down to the worm farm and boardroom floor, built from recycled rimu.

As David explains, “Everything from the building materials, carpet and installation, to the windows, fittings and even the building positioning has been chosen with minimal environmental impact and optimal energy efficiency in mind.

“While all these building features may sound like corporate jargon, they are in fact the very expression of our eco-friendly culture.”


Office entranceway with living wall

Time to Move

Ceres started looking for new premises in 2012. The lease on their existing premises was due to expire and the company, which has been growing by more than 20% each year, was “bursting at the seams”.

“We saw it as a good opportunity to ‘walk the walk’ and create a certified green building that reflected our ethos,” says Ceres director David Josephson.

The company did consider buying land and building themselves, but felt it was more prudent to invest capital in growing the business than in bricks and mortar. So they went looking for an existing site they could lease and sculpt to their needs. They found what they wanted - a brown field development with existing services - just down the road at 82 Carbine Road.

“We found this site and convinced the owners to knock down the building for us,” David recaps. “The owners had never heard of Green Star buildings but they embraced it because they realised that’s the way the market is heading.

“The running costs are so much lower than a conventional building; you can reduce your OPEX immediately, which is what tenants and investors will want increasingly in the future.”

He admits that the upfront cost is more expensive (some of this extra cost was borne by the developer, Norak Properties Ltd, but Ceres shouldered a lot of it) but says they expect to recoup some of these costs in two to three years.

Ceres is in Carbine Road for the long haul. They have a 12 year lease on the site, which has an extra 2000m2 they can expand into and space in the office for over 50% more desks.
 
The Build
 
Experienced in designing both industrial and green buildings, architect Simon Williams “absolutely connected” with the brief and worked closely and seamlessly with Ceres, Norak Properties and the contractor Watts and Hughes. “Simon really got it right from day one,” says David King.  
 
It took only one year to construct the new building which included demolishing the existing building to obtain materials for re-use and recycling. Steel was re-engineered for use in the new building and concrete was ground down and re-used in the driveway. 

This is in keeping with the basic requirements for Green Star certification, which assesses the environmental impact of a building’s site selection, design, construction, materials and maintenance.

Ceres is well on the way to becoming the first distribution facility in New Zealand to gain a 5-Star (signifying ‘New Zealand Excellence’) Green Certification. “Perhaps even a 6-Star rating [which signifies ‘World Leadership’],” says David King. Green Star certification is a time-consuming (it will take another 8-12 months for Ceres to be certified) and expensive business but one they felt was worthwhile. “It’s an important statement of who we are.”

And the building isn’t just being held up as an exemplar of sustainable building; it recently won the Industrial Property Award at the Property Council New Zealand Awards, announced in June.
 
Emphasis on Staff

Ceres employs 80 staff at their Mt Wellington premises (110 in total) and the wellness of employees was a prime consideration during the design of the building. “We wanted to enhance their working environment.”  The aim was to create a healthy building as opposed to the sick buildings we so often hear about.

All materials are recycled or low-VOC (volatile organic compound) and meet Green Star standards. And as well as saving money, the fully-automated building management system (BMS) which monitors lighting and CO2 levels, has made a real difference to energy levels, David says, especially at that mid-afternoon ‘slump’ time. The windows automatically open and close when CO2 levels get too high, allowing fresh air to come in and stale air to flow out. In summer, large glass doors on either side of the open-plan office area can be opened, allowing air to flow through; and even though the heating system is rarely used, even on a chilly winter’s day the offices are comfortably warm.

Ceres Panorama office lowres(copy)
Ceres office space

The office space has been set up to encourage staff to “mix, mingle and converse.” Rubbish/recycling bins, informal meeting areas with sofas, and filing cabinets are located away from desks to foster this and the large café-style staff cafeteria is a popular meeting place. “There’s a lot more conversation and collaboration here than in our old premises,” observes David Josephson.

It’s an office space with a striking industrial look. All the cabling etc. is exposed beneath a high roof. “We try to be real,” explains David King. “Why conceal the truth?” Plus, when they expand – which they have done already in their Customer Services area – cables can be easily located and dropped down wherever they’re needed.

In the warehouse, which has abundant natural light, lights are on sensors and only switch on when someone moves down the aisles. In the summer months very little lighting is needed at all. As the result of such things as the BMS, LED lighting in the outdoor canopies of the warehouse (which have a payback period of just two years), rapid-close roller doors and so on, David Josephson estimates that efficiency in the warehouse has increased by 40%.
 

Ceres warehouse 1 Ceres warehouse 2

Inside the Ceres Warehouse

“In so many respects our new building has met and exceeded our expectations,” he says. “It’s good for our bottom line, for our staff, for our customers and for the environment. And it’s good for the investor as green buildings are the way the market is going.

“Increasingly would-be-tenants will be looking at operating costs and the operating costs in a green building are significantly lower than in a conventional building.”

“We haven’t had any second thoughts or regrets on any level,” agrees David King. “We’re all very proud of it.”

To see more photos and a floor plan area of the building: click here   

To learn more about Ceres, go to www.ceres.co.nz

Watch out for the multi-page feature on the Ceres building in the next issue of Trends magazine, due out this month.

To find out more about Green Star: click here

Market & Salary Update


Property & Facilities Management update from Robert Walters

Robert Walters looks back on a buoyant first half of 2014 and at some key trends going forward in its half yearly update.  Plus, how much can facilities and property managers expect to earn?

Click here to read.
 

BACK TO TOP

FM Education


Why FM Education is an important stepping stone

By Anne Staal, PhD researcher at AUT’s School of Engineering, member of the Centre for Urban Built Environment (CUBE – NZ) and senior lecturer at Hanze University of Applied Sciences (the Netherlands).

Pic Anne Staal master class(copy)















Anne Staal
Worldwide we are seeing facilities management developing from an operational level to a more strategic level. The drivers behind this are globalisation, a focus on core business and life-time cost reductions.

At the same time we are seeing the importance of adding value to customers and users of the built environment. Organisations are starting to recognise that employees work much better in well-managed facilities.

Of course there is always the dilemma between short-term savings and longer term benefits - but that’s quite normal in management.

 

I see facilities management as a wide and interesting business domain. And I think this makes FM an interesting career path both for mid-career professionals and for young graduates.

FM Education in the Netherlands

Training and education has become an important stepping stone in FM. Every year, at our Hanze School of Facility Management in the Netherlands, 20 to 25 mature part-time students decide to follow a full Bachelor degree in FM. At the same time we ‘produce’ around 200 young FM Bachelor graduates, as do some other Dutch universities, and there is a steady market demand for these young and ambitious FM people.

In fact, some of these young FM graduates would very much like to work in New Zealand. These are young professionals with good skill sets and some bright ideas. Students like Herma Schutte, who presented her research at the FM Summit, win prizes at European FM or IFMA conferences.

Our Dutch professoriate in FM, headed by Professor Mark Mobach, focuses its research on space and how it relates to the well-being of patients and the elderly in hospitals. This research, which has received boardroom attention in Dutch hospitals, doesn’t have anything to do with technology management (of heat pumps, boiler-rooms, standard office furniture etc) but instead starts with user-perception and requirements.

FM Education in New Zealand

Our FMANZ Master Classes, which start 5 September, have been jointly developed by AUT and FMANZ and are hosted at AUT.  At AUT we’ve also started an FM paper for our regular students. We hope this is the start of good FM education in New Zealand.

The first FMANZ Master Class is on Professional & Team Management and will help participants climb the FM career ladder. Our second Master Class is on Facilities & Asset Management and will discuss research of AUT colleague Erwin Losekoot: people’s perception of hospitality when they arrive at Auckland Airport. Balancing necessary funding and service levels on Asset Management will be discussed in a ‘pragmatic best practice’ guest lecture by David Long.

I look forward to welcoming many of you to our FMANZ classes starting next month.

Click here http://procurementgreeninnovationsphd.blogspot.co.nz/ to see my PhD weblog.


To find out more about the Master Classes, click here: FMANZ Master Classes 

 

 

Research Update


Herma Schutte continues to showcase NZ research overseas

Herma Schutte, a graduate of the School of International Facility Management at Hanze University Applied Sciences in the Netherlands, spent several months in New Zealand last year researching and analysing the needs and opportunities for FM education in New Zealand. The study was her graduation project for her Bachelor of Business Administration degree, majoring in International Facilities Management, for which she won ‘Graduate of the Year 2014’. Many of you will have heard her speak when she presented her findings at the Summit in May.

To read her research, which is produced in two separate reports, click here:

Now back home, Herma wrote to fill us in on what she has been up to since leaving our shores.
 
First of all, I would like to thank FMANZ and AUT for the amazing opportunity to write a report on the professional and educational development of FM in New Zealand. I look back on four incredible months in New Zealand during which I learned a lot from all the FM professionals that I had the pleasure to meet, as well as the AUT and FMANZ teams. It was a real honour to present my work during one of the workshops at the FMANZ Summit.
 
The EFMC

Only four days after returning home from New Zealand and still slightly jetlagged, I travelled to Berlin for the European Facility Management Conference (EFMC). Students from all over Europe were competing in the Bachelor Poster Competition, for which I was selected as a finalist. I was one of three finalists selected at the end of the first day and had to present in the finals on the last day of the conference. We were competing for a grant and a fully-funded trip to the IFMA conference in September. Unfortunately I didn’t win but the learning experience was great.

Officially Graduated

Since March this year, I can officially call myself ‘a Young Facility Management Professional’ but we didn’t have the official graduation ceremony until the beginning of July. I had the pleasure of being awarded ‘Graduate of the Year 2014’, the first International Facility Management student to have received this title. The magnificent award was designed by artist Jimi Kleinbruinink and represents the flexibility of the FM profession.

Herma and finalists
Herma with the two other finalists at EFMC.
 
Herma award(copy)
Herma with her Graduate of the Year award and artist Jimi Kleinbruinink, who designed the award.

Where to from here?
 
It has been a busy period with lots of decisions to make. I’ve decided to focus on gaining more professional experience in the FM field. I do want to get a Masters Degree but that is something for the near future. I will not forget about New Zealand and all the great challenges that the FM market has to offer (including a PhD), but I will first work on my personal and professional development.
 
It is now time for a little holiday. In August my partner and I are going to Macedonia to explore a country a little bit closer to home and we have recently started making our own wine (inspired, in part, by my time in New Zealand). This has been a fun challenge, although I might have underestimated the time and effort needed to produce a proper bottle of wine!
 
I definitely hope to return to New Zealand one day soon, but in the meantime I would like to take this opportunity to thank everyone for their hospitality and willingness to teach me about FM in New Zealand. I had an amazing time.
 

BACK TO TOP

Salary Survey


Salary Survey open

The call is out for participants to take part in the 2014 Facilities Management Salary Survey. A partnership between FMA and FMANZ, the survey is designed to gather valuable industry insights across a range of issues, from both sides of the Tasman. Importantly it allows the level of earnings across the industry to be benchmarked and tracked. All information provided is confidential.
 

Click here to start the Survey...

BACK TO TOP

FM Online


Jack Crutzen surfs the net for current FM trends

jack










 
Jack Crutzen,
Chair of the Education Committee
Surfing the web, you will find a good overview of current trends in facility management as it’s also a reflection of conversations I have had with a lot of colleagues in facility management or corporate real estate, on both the supply and demand side of the spectrum.

As we focus on value-add services in the area of ‘people, place, and process’, we have the opportunity to make a real difference to productivity, risk management and sustainable initiatives.

In my role as chair of the FMANZ Education Committee, I try to keep an open mind on ‘what’s next’ and how that relates to the required competencies of facility managers, now and in the near future.

A number of organisations and websites track facility management trends and this overview is based on a review of these and other reports, blogs and websites.
 
An overview of ‘what’s coming’ is also handy to define development plans for your staff, business and service; in the development of your current and future scope of service delivery; in  influencing the strategic agenda of your organisation; in defining ‘grey areas’ in your team’s delivery capacity; or just for some cool stories around the dinner table!

Ken Balmer has listed a brief overview of FM trends on his blog, see: Ken Balmer on FM Trends

Rather than qualifying them as trends, I would define them as ‘ongoing focus areas’ for the facility manager. Ken has identified five ongoing trends and issues, and four facility management trends that appear to be emerging solutions. Ken then describes high level themes for facility managers to translate these ‘trends’ in a solutions framework.

The International Facility Management Association (IFMA) has completed two relevant research papers. The first, Facility Management Forecast – Exploring the Current Trends and Future Outlook for Facility Management. The second report, the 2013 Global FM Trends Research Paper, was produced together with CBRE.

Our friends across the Tasman at FMA have identified the following trends for 2014: Cloud computing, BIM , biometric systems, BYOD mobility, the focus on strategic FM, outsourcing and integrated/total FM and workforce integration, and smart building technology such as motion detection. See: Trends for 2014 

Facility managers today are expected to understand their company’s core business and contribute to the bottom line — not only by reducing facility costs, but also by improving the productivity, revenue generating capacity and image of their organisations. To keep an eye on what’s next, this link could be of use: http://www.fmlink.com/WhatsNew/

Some Web Surfing Trends

Surfing the web, I have identified some common themes, what I personally think will ‘hit’ the FM agenda in New Zealand.
 
1.  Service excellence in FM
 
With a growing economy, more focus will be on customer experience, customer-centric service delivery and the associated FM models to make this happen. In Western Europe the FM focus tends to be more of a human experience, ‘happy shopper, happy trade’ approach. Staff is the most important resource and with the war for talent it’s obvious that one gets the most productivity out of staff once FM provides a ‘service or hospitality experience’. This approach is also crucial in the brand perception once visitors and stakeholders visit an organisation.

See: FM link Article on Service Excellence

Or: FM Link Article on Service Management Model
 
2.  Doing more with less

Facilities managers are charged with the task of improving maintenance; accomplishing this objective with reduced capital outlay, less time and fewer people per square metre than in the past. As a result, managers are constantly seeking ways to improve efficiency.

With this, there is an ongoing desire for automation.

According to asset and facility management software and services providers, the three significant automation developments include: 1) increased reliance on handheld devices to minimise paperwork and boost the accuracy of data collection; 2) integration of facility management and maintenance management functions and departments; and 3) greater focus on integrating facility/maintenance/building control systems (hardware and software).

We can expect more focus on the integration of Helpdesk software, maintenance planning, asset management functionality, finance and planning and space management. The market for integrated facility management systems (FMIS) will further increase as this functionality will take over routine tasks in operational FM and support decision making via meaningful data supply and analysis.
 
3.  Value-driven design
 
Faced with limited space, managers are squeezing the most functionality out of every square metre. Facilities managers and their designers are creating cost-effective and productivity-enhancing facilities by tailoring spaces to the needs of the organisation and its workers. As a result, trendy offices are out, while classic designs are in. Additionally, workspaces that are flexible, able to accommodate multiple functions and capable of supporting cutting edge technologies, such as wireless LAN, are much coveted. In short, this value-driven trend is characterised by a renewed emphasis on maximising usage and practicality.
 
4.  Increasing complexity

This trend is related to outsourcing as companies often decide to outsource because of the growing complexity of facilities management. Both the industrial-plant sector and the non-industrial facility segment are employing more sophisticated technology for maintenance.
 
Moreover, in the service industry, facilities managers have to keep track of complex data over long periods of time in order to monitor improvements. But also the increasing complexity of organisation structures or lack of structures (matrix type organisation) require smart FM solutions (who sits where/space management solutions, meeting rooms support technology, individualised building services per space area).
 
5.  Cost control & procurement analysis
 
Cost control remains a priority for many organisations. Procurement analysis tools are often beneficial to determine how costs currently are allocated within the business and if other business units are spending money on FM related scope of services. Economies of scale can often be achieved.
 
6.  The focus on ‘Strategic FM’
 
One of the key tasks of FMs to explore is how FM can help their business achieve competitive advantage, with companies taking a more strategic approach to FM resources and contracts. There will be more of a focus on aligning FM services with operational performance to result in tangible cost savings, enhanced productivity and workforce efficiencies. The focus is rapidly shifting away from service-oriented task taker role to value-driven dialogue, meaning FM high achievers are thinking more strategically when responding to new opportunities by articulating a clear and measurable value proposition.
 
7.  Space optimisation and FM service demand management
 
At present, research data shows that there is an increasing demand for space. But with the backlog in available space and buildings (new to build) we will likely face a space shortage for some years to come. Organisations reported that they have reduced their real estate footprint by occupying space more efficiently. Such space optimisation strategies are increasingly prominent for corporates due to the balancing act between cost savings (reported by a majority as a key driver of alternative workplace strategies) and providing a collaborative working environment with the aim of improving employee productivity.

It is therefore interesting to see that the vast majority of companies are not widely adopting remote working strategies and that still the majority of staff has limited opportunities for flexible working strategies. This indicates that the office environment is still key, which explains the focus on improving the quality of the workplace. This is an opportunity for the facility manager to provide a value-add service.

The other driver for costs management, or should I say ‘cost avoidance, is the management of customer demand. Having clear service level agreements in place and clarity of FM scope in the business will support expectations of FM service delivery in volume and quality. Financial on-charge mechanism will support the debate that FM is not the cost-centre but the business creating those costs based on their FM-demand.
 
8.  Optimal work environment
 
This leads to companies placing greater emphasis on providing staff with the right environment in the right locations. European research shows that although cost is the principal factor when companies choose office space, the majority of organisations report that they see the quality of their workspace as integral to attracting and retaining talent. In turn, three-quarters believe public transport accessibility is important to staff, with the provision of ‘value-add’ amenities such as an on-site gym or restaurant and flexible workspace being seen as also important. Overall, the results indicate that for occupiers, a central, amenity-rich location that provides lifestyle options for the workforce outside the work environment is crucial.

9.  Sustainability gets a new agenda
 
In the mid 2000’s we faced the sustainability wave of green-washing and corporate branding and we’re slowly moving into a phase where sustainable strategies are supported by smarter building performance and efficient and green portfolio asset management strategies. The quick-win approach has been replaced by a life cycle focus approach and within that an acceptance that sustainability initiatives have a sensible ROI of four to seven years. Refurbishing buildings to green standards will be a trend, especially when there is a shortage of space or a need for new space management initiatives. Smarter buildings are surely greener buildings!

Conclusion
 
With the broad overview of trends and opportunities, I personally would limit the key trends to these topics:
 
  1. Workspace management and FM service demand management: effective use of space in a property market that is experiencing pressure on available square metres.
     
  2. Workplace experience: with more and more pressure on resourcing fit we need to create a better experience to support brand, staff retention and productivity. If the basic FM experience is perceived to be poor there is no chance facilities managers will get a place at the C-suite table.
     
  3. Asset management and life cycle (cost-avoidance) management.
     
  4. Focus on revenue growth, value-add proposition and ongoing cost management.
     
  5. Training and development: the battle for good staff or the war for talent.
     
  6. IT and smart technology: what are the IT tools we need to do our job and how can we apply smart technology to create smarter FM, smarter buildings and smarter performance?
     
  7. How to influence: strategic FM.
     
  8. Integrated FM solutions: with the facility manager acting as the ‘strategic conductor’ of FM.
     
  9. Partnership models/ professional procurement: the next stage.
 
Facility managers today are expected to understand their company’s core business and contribute to the bottom line — not only by reducing facility costs, but also by improving the productivity, revenue-generating capacity and image of their organisations.

So keep your eyes open for the opportunity and for what’s next.   
 
The above list could also be handy as a reminder when you write your annual FM plan or review your FM strategy.

Hopefully this has provided you with a guide to surfing the web for more insights and knowledge and will help you develop your competences to make a difference. Have fun on the journey and please advise me if you see trends and developments not mentioned in this article!

For those of you interested in the FMANZ Competency Framework and becoming professionally accredited, have a look at the FMANZ Professional Competency Framework 
 
 
 

Legal Update


When is a contract a "construction contract"?

Janine Stewart, Partner, and Anna Cornelius, Senior Solicitor, Minter Ellison Rudd Watts, discuss when a contract is a ‘construction contract’ under the Construction Contracts Act 2002.

The term “construction contract” commonly evokes images of building sites and hardhats. However, the Construction Contracts Act 2002 (CCA) has a broad coverage and applies to contracts which may be traditionally assumed as falling outside the term “construction contract”.  
 
This is important because the CCA is a prescriptive, ‘no contract out’ regime that regulates, among other things, progress payments and provides an adjudication framework for the resolution of disputes arising out of construction contracts. 
 
Parties are frequently caught unaware that their contract is a ‘construction contract’ and therefore subject to the payments regime, fast-track adjudication and subsequent debt recovery provisions in the CCA, with unexpected and occasionally dire consequences.
 
So when is a contract a ‘construction contract’ and what do you need to be aware of if you are a party to one?
 
Construction contract = contract for construction work

Section 5 of the CCA defines a ‘construction contract’ as a contract for carrying out ‘construction work’.
 
Construction work defined extensively in the CCA
 
For a construction contract to exist, the work that is being undertaken must be captured by the definition of ‘construction work’ in section 6 of the CCA.  The definition includes obvious works such as the construction, alteration, extension, demolition or removal of any building or structure forming, or to form, part of land as well as the prefabrication of customised components of any building or structure, whether carried out on the construction site or elsewhere. 
 
However, it may come as a surprise that the definition also includes less obvious works that are not regarded as “construction” in the traditional sense, but that are caught by the provisions in the CCA, such as contracts for:

  • Repair and maintenance – this means that contracts for the repair and maintenance of lifts, air conditioning systems and electrical services will be considered construction contracts;
  • Painting or decorating of the internal or external surfaces of any building or structure; and
  • External or internal cleaning of buildings and structures (so far as it is carried out in the course of their construction, alteration or repair).
 
Whether the work under a particular contract falls within the definition of ‘construction works’, and is therefore a construction contract, will turn on the particular facts.  For example, in Gulf Harbour Investments Ltd v Y Gulf Harbour Ltd (HC Auckland CIV-2005-404-386-7, 16 March 2006, Christiansen AJ), the High Court held that a contract to paint a yacht was not captured by the definition of ‘construction works’ as a yacht was not a ‘structure’ in terms of the CCA.
 
Where one or two items of work under the contract are outside the definition of ‘construction work’, the contract may still be a construction contract.  In Herbert Construction Co Ltd v Reinforcing Steel & Mesh Ltd [2013] NZHC 376, part of the work, cutting pieces of steel to an exact length and transporting it to the work site, fell within the definition of construction work (prefabricating customised components).  However, the contract also included the supply of some items that did not require customisation and were therefore not ‘construction work’.  The High Court held that it was clear that the contract related to ‘construction work’ and the inclusion of small number of items outside of the definition was not sufficient to change the nature of the contract.  Accordingly, all aspects of the contract fell within the ambit of the CCA.
 
Construction work excludes construction-related professional services (for now)

The current version of the CCA applies to construction works only and excludes construction-related services such as architectural, engineering, quantity surveying and other professional services.
 
Presumably this distinction came about due to the CCA’s ‘pay now, argue later’ approach to facilitate cash flow and was therefore limited to the parties traditionally viewed as directly involved with the construction process itself rather than industry professionals involved in preliminary and other steps related to the construction works.
 
However, the status quo is set to change when the Construction Contracts Amendment Bill 2013 comes into force.  One of the key changes will be to increase the scope of ‘construction works’ in the CCA to include design, engineering, quantity surveying work and related services in the definition of construction work.  This change will expose more parties to the adjudication process under the CCA, allowing a more streamlined dispute process:  Currently where a dispute arises during a project only the principal and contractor can utilise the adjudication process; however when the definition of ‘construction works’ is expanded, the adjudication process can be utilised by all the key professionals involved in a project.  The aim is to reduce costs for parties involved in a dispute and lead to consistency of outcomes.
 
Form of construction contract is immaterial

The form of a construction contract is immaterial as long as the contract relates to ‘construction works’ and the key requirements of a general contract are present (offer, acceptance, intention to be legally bound and consideration).  The High Court in Finesse Residential Ltd v Vasanthan [2013] NZHC 3202 confirmed that, unlike contracts for the sale of land, it is not necessary for a construction contract to be in writing.  A construction contract may be written or oral, or partly written and partly oral (however, in the interests of certainty it is always preferable for the contract to be written so that the intentions of both parties are clearly documented).
 
Key things to be aware if you are a party to a construction contract

Before you enter into a construction contract ensure that you fully understand how the CCA regime will apply.  In respect of the payments, adjudication and debt recovery provisions, the key things to be aware of are:
  • ‘Pay if paid’ clauses in construction contracts are invalid, i.e. a clause that says you will not pay the contractor until you get paid by someone else.
  • Where a contractor serves a payment claim for its works, the payment claims either needs to be paid before the due date (20 working days after received or as otherwise set out in the contract) or a payment schedule, responding to the payment claim, needs to be provided. Otherwise, the claimed amount becomes a statutory debt.
  • If the scheduled amount in the payment schedule is less than the claimed amount in the payment claim, the payment schedule must indicate how the lesser amount was calculated and the reasons.
  • If the claimed amount is disputed, the parties can use the CCA fast-track adjudication procedure to resolve their dispute.
  • The default timeframes in the CCA allow for a dispute to be determined in as little as 35 days from the date of notice of adjudication.
  • The adjudicator’s determination is binding and enforceable as a Court judgment, providing access to a range of enforcement procedures.
  • Alternatively, nothing in the CCA prevents the parties from implementing other dispute resolution procedures alongside, or instead of (by consent), the CCA adjudication procedure (e.g. mediation, arbitration, litigation).
 
This brief article is not legal advice to be relied upon. Readers are advised to obtain their own specific legal advice from an appropriately qualified professional.
 
Anna(copy)
Anna Cornelius
Senior Solicitor

 
Minter Logo from July 2015
Janine(copy)
Janine Stewart
Partner

 

Congratulations!


Two more members become accredited

Graham Bottom(copy)(copy)
Graham Bottom

Congratulations to Graham Bottom and Mark Sinclair who were recently accredited as Professional Members of FMANZ. A Professional Member of the Association (PFMANZ) is an Individual Member who has satisfied the Board of a level of experience, knowledge and skill that is sufficient to award accreditation based on the professional Competency Framework published by the Board.  

The Board has recently agreed that IFMA's CFMZ and FMAA's FMA 1, 2 or 3 will be recognised as comparable and transferable to PFMANZ.  People holding these qualifications would be awarded PFMANZ by supplying a copy of the qualification, executing FMANZ's code of conduct and paying the one-off application fee of $175.

FMANZ currently has nine Professional Members and nine Fellows.  For a full list, click here.
 
mark sinclair 1(copy)
Mark Sinclair

BACK TO TOP

Wormald Connect


A new online tool to help you keep track of your fire equipment Wormald Logo(copy)

Fire protection specialist Wormald now has a 24/7 online portal called Wormald Connect to help managers keep track of vital fire equipment maintenance and servicing.
 
Wormald Connect allows users to review testing data and log defect calls online at any time.  Data can be stored on the portal for analysis or exported in easy-to-read reports online, whenever it is needed.
 
Iain McKenzie, from New Zealand Sugar Company, who currently uses Wormald Connect says, “The portal provides transparency and greatly assists in the management of building safety information. 
 
“We can quickly and easily access testing and servicing information and download important documentation relating to our building’s fire protection.  The reporting functionality is hassle-free so it’s easy to share details with my management team.”
 
Wormald says New Zealand Sugar Company is one of a growing number of customers enjoying the benefits of having 24 hour access to fire safety management data, giving their employees greater visibility across maintenance and servicing requirements. 
 
To help manage a building’s fire safety information, documents such as 12a, building warrant of fitness and building compliance certificates, can also be uploaded to Wormald Connect.
 
The portal will work for businesses of any size and each customer is provided with a unique user name and password so they can easily and securely access their fire system information online.


Watch the Wormald Connect video here:

 
For more information visit www.wormald.co.nz or call 0800 4 WORMALD.

 

Water Survey


Researchers call for feedback
 

BRANZ is researching rainwater and greywater in New Zealand commercial buildings and needs your help. The study aims to increase industry knowledge of rainwater harvesting and greywater recycling system feasibilities in buildings by developing a strategic framework for New Zealand.

The research is organised across three research streams, all of which require industry input:
 
  • Policy/Social: considers the drivers and barriers that exist. The survey is now open and your opinion is needed.
     
  • Buildings: investigates the performance of rainwater harvesting and greywater recycling systems in a number of case study buildings.
     
  • Water Networks: looks at existing strategies and potential impacts on networks across New Zealand, through network surveys and modelling.
     
If you’re interested in participating in the online survey, providing case study buildings or learning more about any aspect of the study, please contact Dr Lee Bint, phone (04) 237 1170 or visit the project web-page.

 
FMANZ gratefully acknowledges the support of our major sponsors
 
our Platinum Sponsors
our Diamond Sponsors
 
Meridian Logo  new(copy)








 
© Facilities Management Association of New Zealand Incorporated
Unsubscribe from this newsletter | Contact us