New Zealand Building Industry Regulation and Compliance Conference

Practical implications and legal insight for the building and construction industries


Registration and coffee
Opening remarks from the Chair
Polly Pope, Partner, Russell McVeagh
Michael Taylor, Senior Associate, Russell McVeagh
Part A | Leaky buildings: A council class action in the making
Councils are starting to drown under water on leaky buildings that were approved during the past 10 years.  
• Understanding the liabilities that arise as a result of living in or on-selling of a property undergoing leaky issues and were council approved.
• Highlighting the risks of using sub-standard materials and compliance with the building code and how can this contribute to leaky building issues.
• How to use overseas material in buildings here and still comply with New Zealand regulations
Helen Macfarlane, Partner, Hesketh Henry
Part B | Fire in a leaky building
Badly constructed buildings not only result in leaky buildings but can also be a potential fire protection issue. Understanding the dangers of fire in a leaky building.
• Understanding the dangers of passive fire in a leaky building.
• What’s going wrong and who is at risk?
• Mitigating risk factors surrounding fire issues. 
Ron Green, Director, Fire Group Consulting
Morning break
Failings of the Building Act 1991 - Were these a cause of the leaky building crisis? Breaking down the Building Act 2004: What does it really mean?
The discrepancy between the Building Act 2004 and a regulator lies in what is being conveyed and what the regulator is comprehending.  
• Developing a deeper understanding of the system and the opportunities and challenges it offers with respect to legal compliance.
• Understanding what a regulator needs to take into account when enforcing compliance.
• Looking into updates in the Act and how it repurposes the regulators’ focus.
• Are we now better served by a more prescriptive Act so as to avert another leaky building/construction defect crisis?
Tim Bates, Principal, Legal Vision
Mandatory third-party guarantees
The leaky home crisis, coupled with our joint and several liability regimes, subjected many local bodies to a crippling financial burden. Successive governments have been sympathetic to councils’ pleas for a cap on their liability, but have recognised that this would leave many aggrieved homeowners exposed. The preferred solution is to introduce a mandatory third-party guarantee scheme, and this proposal has been gathering steam recently.
• Gain an understanding of the concerns arising from overseas experience and the natural reluctance of the insurance industry to cover the higher-risk projects.
• Learn about the current proposals and the opportunities and threats they pose for the insurance and building industries in general
Geoff Hardy, Partner, Martelli McKegg
Lunch break
Safeguarding your position as a principal
Tom guides you on securing your position as a principal in a project through the process recent developments in relation to claiming under bonds, the new retentions regime and recent court decision regarding direct payment arrangements. 
• How to secure your position as a principal in a project through mechanisms like bonds, retentions and direct agreements.
• Ensure you understand the solutions available to you in case of liabilities in the project in case things don't go as planned.
Tom Bennett, Partner, Bell Gully
Update on key construction contract disputes
The termination of a contract is an issue that has been canvased extensively. It is particularly interesting how it has been applied in the context of construction contracts. There have been a couple of cases in the last few years that have looked at a parties’ rights to terminate and the consequences of wrongful termination. This session will look at:
• Termination of construction contract – When can a party terminate and the consequences of wrongful termination. 
• Suspension of works – When can a party suspend works and what are the risks.
• Payment schedules – How to successfully dispute claims for payment in your payment schedule.
Riaia Donald, Senior Associate, MinterEllisonRuddWatts
Afternoon break
The interplay between head contracts and sub-contractors
In just about every construction development, you will not only have a construction contract between the principal and contractor, but several “flow-on” contracts with the head-contractor and subcontractors. This session will discuss the issues one should adhere to when working with head-contracts/subcontracts.
• Understanding what the key factors are that one should be mindful of in a head-contract?
• Exploring the key factors that one should be mindful of in a sub-contract.
• How does a head-contract affect a sub-contract in practice?
Tina Hwang, Associate, Queen City Law
Brett Heaven, Director, N-Compass
Health and Safety: The collaboration between landlords and lessees
When it comes to health and safety in the workplace, both landlords and lessees have a certain degree of care. This session will explore the relationship between the two parties.
• Understanding the relationship between landlords and lessees and how they co-operate, consult and co-ordinate.
• Highlighting the updates on the Health and Safety Act 2015.
Sarah-Lee Stead, Senior Associate, Kensington Swan
Summary remarks from the Chair
Polly Pope, Partner, Russell McVeagh
Michael Taylor, Senior Associate, Russell McVeagh
Building and construction industry networking drinks
Welcome back from the Chair
Polly Pope, Partner, Russell McVeagh
Michael Taylor, Senior Associate, Russell McVeagh
Earthquake Prone Buildings Amendment Act 2016 - an update and its implications
With the damage caused by earthquakes to both residential and commercial buildings, what does the update in the Earthquake Prone Buildings Amendment Act 2016 have in store for the building and construction industry?
• Adopting the new priorities for earthquake prone buildings.
• Implications of the new changes on building owners and identifying risks.
• What does this mean for local government/councils and other organisations conducting risk assessments on buildings.
Craig Langstone, Partner, Fee Langstone
Insuring for natural disasters – the key issues
Given the inevitability of earthquakes and increased climate change-related disasters it is critical that all the parties to a construction contract both properly manage all the risks and fully understand the terms of their insurance.
• Highlighting the implications of a 'restriction zone' around earthquake prone areas and what that means for contract works insurance.
• How are claims excess calculated after a natural disaster?
• A look at the insurance risks around construction projects in highly disaster-prone areas and how this needs to be reflected in your construction contract. 
• Allowing for post-disaster cost inflation and delays – lessons from Christchurch.
Ben Rickard, Director, Builtin Insurance
Morning break
Case Study | Statistics House Wellington
This case study session will delve deeper into why the Statistics House in Wellington suffered extensive damage from the Kaikoura earthquake.
• Understanding the pitfalls of a ‘pigtail’ construction.
• Implementing ‘best practice’ construction methods to minimise risks associated with natural disasters whilst complying with legislation.
Greg Davies, Auckland General Manager, Miyamoto International NZ
Case Study | Dirt and debris: Asbestos in earthquake
This case study will look at what improvisations, the introduction to new Health and Safety laws has resulted in, post the removal of asbestos in earthquake damaged properties.
• Highlighting statistics around asbestos related health issues pre- and post the introduction of the new Health and Safety laws.
• The cost implications of asbestos removal.
Terry Coleman, Secretary, New Zealand Demolition and Asbestos Association
Lunch break
Standards New Zealand | The building standard and timber standard
As of March 2016 Standards New Zealand is now a business unit within Ministry of Business, Innovation and Employment. Prior to the transition into MBIE, Standards New Zealand operated as a separate Crown entity since 1932. So, what does this mean for the future of the standards specifically affecting the building and construction industry?
• Highlighting the proposed changes to the NZ 3604.
• How to get access to more standards now that the model has changed.
• A look at what resources will be available to industry professionals.
Stanil Stanilov, Team Leader Standards New Zealand , Standards New Zealand (Ministry of Business, Innovation and Employment)
Extended Q and A | Challenge the experts and get your burning questions answered

Following on from the session by Standards New Zealand, this is your chance to delve deeper into the standards discussed above and question the experts and get the answers you need.

Stanil Stanilov, Team Leader Standards New Zealand , Standards New Zealand (Ministry of Business, Innovation and Employment)
Afternoon break
The practical application of building regulatory framework
Louise Swann gives an insight into using a business centric approach to comply with building regulations (council requirements, the building code) and achieving business value as a result.
• Understanding what a business centric approach means – it’s all about reliance.
• Using enablers within building regulation to achieve this approach.
• Applying the reliance model – it is about trusting that as the project progresses through the phases, the people in the value chain have done their parts correctly whilst complying with the legislation. 
Louise Swann, Manging Director, The Building Business
Looking into the future: Where is the construction industry headed in the next 2 years?
The conference will end by taking you on a journey into the future. There will be a focus about how the construction industry will shape in the near future and the important aspects of the regulatory information that will help direct the industry. 
• Where is the industry today and how will it shape in the next 2-years?
• Addressing the pitfalls that exist today and how can they be improved for the future.
• Highlighting the changes within the regulatory information as well as the industries that can be expected.
Mel Orange, Board Member, Licensed Building Practitioners’ Board
Closing remarks from the Chair and end of conference
Polly Pope, Partner, Russell McVeagh
Michael Taylor, Senior Associate, Russell McVeagh
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