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December 2014

Change for the better?

02 Dec 2014, Builders business, Feedback

What do you think have been the best/worst construction industry changes over the past ten years? 

Firm: C W Kelland
Principal: Colin Kelland
Location: Invercargill
Staff: 4 employees (1 apprentice, 1 admin)

There have been a number of changes over the past decade, but in general I find the positives outweigh the negatives.

For example, the focus on health and safety, while it does add some cost, is a good thing overall. I’ve made it a priority for some time, because it keeps my employees and business safe. Injuries cost money; avoiding them makes ACC levies cheaper and helps the business run more efficiently. I think it’s a shame safety actually has to be enforced – it should be a given that you look after yourself and your employees.

I also think the renewed focus on apprentices is very positive, as I believe the current skills shortage is a result of that support petering off during the recession.

Overall, the biggest negative for me is the increasing cost of compliance associated with building, despite government’s continued promise to consumers that building costs will be reduced.

 

Firm: Davis Contracting Limited
Principal: Gary Davis
Location: Levin
Staff: 6 staff (1 apprentice)

There have been a number of significant changes over the past ten years and, while I think some of them are a step in the right direction, I don’t think that we, as builders, have really seen the benefits yet.

A great example is the LBP scheme. Being part of a regulated industry is a good thing, but so far it’s just a lot more work and not many advantages. There was discussion of being licensed cutting down on costs and paperwork, and we haven’t seen that happen yet – but hopefully in time we will. There was also talk of consumers only hiring LBPs, but that hasn’t really happened in our area. Some people are still just hiring whoever quotes the lowest price, whether they’re LBPs or not.

I also think that health and safety has gone a step too far. It did need a change but unfortunately everyone’s been tarred with the same brush and employers have substantially more responsibility as a result. I’ve also noticed a negative impact of there being so much discussion around health and safety. It’s almost like people have a perceived sense of being safe because it’s been talked about, and therefore neglect to apply common sense. It’s also another added cost, so, if not everyone is on board, you lose work because you’ve incorporated the additional costs into your pricing.

The other change I’ve noticed is that councils directly affect building development more these days. They seem more keen on dictating what can and can’t be built, and where.

 

Firm: Paul Karels
Principals: Paul Karels Building
Location: Whangarei
Staff: 3 staff (1 apprentice)

There have been a few positive changes over the last decade, but for me, the most important is the increasing support the industry is getting for bringing on apprentices. As a result, there are a lot more people giving young guys a chance; I’ve had two just become qualified and it’s been great to see their skills improve and develop over time.

I also think that the LBP scheme is awesome in theory, and hope it continues to grow, but I don’t find they’re policing it enough yet. It seems like there’s a few too many guys out there who are licensed and shouldn’t be.

The change I don’t support is the new approach to health and safety. While I do believe it’s important to ensure everyone is working in a safe manner on a safe worksite, I believe they’ve almost completely removed the onus on personal responsibility, and placed everything on the employer’s shoulders. There really should be a balance between the two.

 

 

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