management in the construction industry - course work 1 procurement & the context of construction

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    Faculty of Science and EngineeringCivil Engineering Department

    MASTER OF CONSTRUCTION MANAGEMENT

    MANAGEMENT IN CONSTRUCTION INDUSTRY (709300)

    PROCUREMENT AND THE CONTEXT OF CONSTRUCTION

    COURSE WORK I

    By: VINU FRANCIS Student ID No.

    1128992

    I the undersigned declare that I am the author of this work, and that anycontent from other sources has been acknowledged and fully cited.

    Signed:Time spent on assignment: hours

    Assessor:Assessor comments:

    Date of assessment: 23 -08-2011 Mark awarded:

    C ONTENTS

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    1. INTRODUCTION 3

    2. BUILDING ACT 2004 4

    2.1 RESOURCE CONSENTS 5

    2.2 PROJECT INFORMATION MEMORANDUM 5

    2.3 BUILDING CONSENTS 6

    2.4 PRODUCER STATEMENTS 7

    2.5 CODE COMPLIANCE CERTIFICATES (CCC) 7

    2.6 COMPLIANCE SCHEDULES & BUILDING WARRANT OFFITNESS (BWOF)7

    3. PROCUREMENT SYSTEMS 8

    3.1 TRADITIONAL 9

    3.2 DESIGN AND BUILD (D&B) 10

    3.3 MANAGEMENT 12

    3.4 PRIVATE PUBLIC PARTNERSHIPS (PPP) 12

    4. IMPACT OF BUILDING ACT ON PROCUREMENT SYSTEMS 13

    4.1 ISSUES OF BUILDING CONSENTS 14

    4.2 ISSUES OF LICENSED BUILDING PROFESSIONALS 17

    4.3 MANDATORY WARRANTIES 18

    5. PRESENT ECONOMIC SITUATION - NZ 19

    6. CONCLUSION 19

    7. REFERENCES 20

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    1. INTRODUCTION

    Building Act was introduced into the construction industry for the regulation of

    building works in New Zealand. The Act affects the construction, modification,

    destruction and maintenance of all new and existing buildings all over New Zealand.

    It sets standards and techniques for personnel involved in construction work to

    guarantee that buildings are built right first time. It also covers how a particular

    building work can be done, who can do it, and when it needs to be inspected and

    maintained. So any type of buildings which is to be constructed or renovated is

    affected by the Building Act. Major provisions given out in the BA 04 for the issue of

    a building consent or consents (BC) were not interpreted very clearly and so theamendment acts were introduced in the following years. [www.dbh.govt.nz, n.d.]

    Considering the New Zealand economy, it has always been small and operates on

    open market principles. Building and construction industry plays a very important

    role in New Zealand economy. Project procurement has a vital role in construction

    industry. It is the purchase of construction related services with the objective of the

    creation of a new building or structure and/or alteration, renovation, maintenance and

    extension of an existing building or structure. In other words, it can be described as an

    predetermined process and technique for clients to acquire construction materials.

    Apart from the traditional methods, now there are different complex and highly

    efficient procurement systems used by the construction industries worldwide. The

    different procurement systems vary each other in allocation responsibilities, order of

    activities, process and procedure and organizational approach in project delivery.

    In this coursework we discuss how the building act, which was revised in 2004, has

    an impact on the procurement systems available in New Zealand today. Also we go in

    detail about how the new act affects the consents, licensed experts and professionals,

    building consents and mandatory warranties. Further the economy of NZ is analysed

    and suggest some remedies for the better productivity in the construction industry

    which could elevate the economy of New Zealand thus getting out of bad times to

    some extent.

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    2. BUILDING ACT 2004

    In New Zealand, the entire construction including both residential and commercial

    buildings which includes structures, bridges etc. are controlled by the Building Act

    2004. It applies to the construction of a new building as well as the modification and

    destruction of current ones. The BA 04 has dismantled the BA 91 and introduced a

    series of variations to the regulations regarding building and construction work that

    will contribute to a more productive, efficient building and construction sector. These

    changes are introduced in several stages. Some have already been into effect, while

    some will be implemented in the future. Moreover the case of leaky buildings has

    resulted in making the amendments faster. Building act has resulted in a higher initial

    cost structure, unknown lifecycle costs, inconsistencies in the application of the

    consent and compliance process around the country and has inhibited industry

    productivity and innovation. [http://www.dbh.govt.nz/blc-building-act, n.d.]

    The Act aims at improving the control and further encourages better practices and

    performance in, building design and construction which in a sense has a good

    influence on the entire NZ construction industry. i.e. ,

    We can expect more simple standards on constructions to meet.

    More supervision on how those standards can be met.

    We can assure that more experienced and talented people are undertaking

    building design, construction and inspection.

    More enquiries in the building consent and inspection procedures.

    Better protection for the property holder by mandatory warranties.

    [http://www.dbh.govt.nz/ba-about-the-building-act, n.d.]

    Building act was introduced with a vision of cost reduction within the building and

    construction without comprising quality. The ultimate aim of the BA was to make

    sure that

    People who uses the buildings are safe while at the same do not risk their life

    and health

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    Buildings have characteristics that contribute to the health, safety and well-

    being of the people who uses it.

    At times of fire, people can escape easily from the building.

    Aiming a sustainable development by creating buildings in a better design and

    using efficient construction methods.

    Although it was introduced with an intension of cost reduction, safety and

    sustainability by the legislation, majority of the matters which were interpreted in the

    act were not very clear regarding the consent issues, mandatory warranties and the

    issues of licensed professionals etc. [http://www.dbh.govt.nz/blc-building-act, n.d.]

    2.1 RESOURCE CONSENTS

    Resource consents are licences that allow taking or utilizing water, land or coastal

    resources. They also include permits on disposal of water or other wastes into land,

    air, land or to water. Resource consent has special consideration towards the

    protection of environment and it makes sure that approved activities are conducted

    safely without any harm to the environment. Basically there are four major types of

    resource consents which are

    Land use consents: Different land uses can affect the quality of water, stability

    of land and can even lead to soil erosion.

    Water consents: Many water related activities such as constructing a dam or

    diverting the path of a river can have adverse effect on the availability of

    water as well as the quality of water.

    Discharge Consents: Discharge consents are related with the disposal activities

    of contaminants into the air, water or to the land.

    Coastal Consents: Costal consents try to protect the coastal areas of New

    Zealand where construction works take place.

    [http://www.waikatoregion.govt.nz/Consents/Resource-consents/Activities-

    requiring-consents/, n.d.]

    2.2 PROJECT INFORMATION MEMORANDUM

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    and plumbing works, destruction and relocation, modifications made in the existing

    buildings and construction of new buildings, installation of HVAC systems, solar

    panels, fireplaces etc. [http://www.nelsoncitycouncil.co.nz/what-is-a-building-

    consent, n.d.]

    2.4PRODUCER STATEMENTS

    Building consent authority can check the authenticity of a construction or the

    alteration done in a construction which follows the building code with the help of

    producer statement. Its a written document given either by the architect, designer or

    the builder himself who is very much involved in the project stating that they have

    done the works to the required standards. [What Is A Producer Statement? GeoffHardy, October 2010]

    2.5 CODE COMPLIANCE CERTIFICATES (CCC)

    A code compliance certificate, or in other words CCC is only given after a thorough

    examination if the Council is reasonably satisfied that the particular construction

    complies with the New Zealand Building Code. A CCC keeps record of the building

    work and provides information to future buyers or guarantee that the work done is

    legal.[Code Compliance Certificate, North Shore City Council, December 2009]

    2.6 COMPLIANCE SCHEDULE & BUILDING WARRANT OF FITNESS(BWOF)

    A Compliance Schedule is a document regarding the safety systems installed within

    the building and is prepared by the Council. It gives information on the inspection

    maintenance and reporting of a particular system within a building to ensure that the

    owners of the building take up the entire responsibility to guarantee the safety of the

    people using the building and the building. The particular system can be either any of

    the following,

    Automated fire sprinkler system

    Automatic doors or windows

    Emergency lighting systems

    Smoke control systems

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    Alternate power sources at times of emergency/ automatic shutdown of power

    HVAC systems etc.

    A Building Warrant of Fitness (BWOF) is a statement by the building owner which

    guarantees that the stated above systems or any other systems which are used for the

    safety of the building and the people who uses it, have been maintained in accordance

    with the Compliance Schedule. A copy of the BWOF must be submitted before the

    Council and public annually.

    [http://www.ccc.govt.nz/homeliving/buildingplanning/buildinginspections/buildingw

    ofandcompliance.aspx, n.d.]

    3. PROCUREMENT SYSTEMS

    Procurement system has a vital role in the construction industry and has a wider

    meaning in NZ construction industry. It is not just the purchase of goods and services,

    but rather it covers the .initial planning, designing, development, construction,

    maintenance and finally the overall monitoring of the entire building sector processes.

    In the last two or three decades, there have been so many significant changes to the

    procurement systems both under technical and economic conditions that are

    prevailing in the construction industry today in New Zealand. A wide range of

    procurement systems exist in the NZ construction industry ranging from simple

    traditional method at one end to D&B, together with new forms of contractual

    systems which are continually being improved to match consumer and public

    requirements, such as partnering and alliancing.

    FIG 1: PROPORTIONS OF PROCUREMENT SYSTEMS IN NZ

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    [Effect of Procurement Systems on the Performance of Construction Projects, Rosli

    Abdul Rashid, Ismail Mat Taib, Wan Basiron Wan Ahmad, Md. Asrul Nasid, Wan

    Nordiana Wan Ali & Zainab Mohd Zainordin, (Department of Quantity Surveying,

    University of Technology Malaysia), June 2006 ]

    [ Reconstruction Procurement Systems: The 2005 Matata Flood Reconstruction

    Experience Kelvin Zuo, Suzanne Wilkinson, Jason Le Masurier, Jetske Van der Zon,

    n.d.]

    A variety of procurement systems exist within the construction industry today and

    new methods are being devised to meet the needs of both the client and the

    community (Construction Industry Council, 2009). The systems which are impliedwithin the NZ construction industry are the

    Traditional

    Design & Build (D&B)

    Management and

    Private Public Partnership (PPP)

    As a result of the introduction of the building act there were many impacts on these

    systems which we shall discuss below.

    3.1TRADITIONAL PROCUREMENT SYSTEMS

    The traditional form of procurement system is the one in which the architect or the

    designer has no direct contact with the professional and all the communications are

    transferred via the main contractor. There will always be a clash of ideas while the

    information is passed and so it makes the traditional system more responsible. In

    common, under the traditional scheme, the architect is the project head and represents

    the customer to implement the design process and takes the responsibility to ensure

    that the project is executed, delivered under right time, cost and quality. Under this

    system, the client employs independent professionals who design the entire project

    and prepare tenders which are competitive, and are obtained from contractors.

    Successful tenderer enter into a deal with the client and carries the project work under

    the supervision of the professionals. [Review of traditional construction models and a

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    comparison of product Development processes with other industries, Unit 3, Halim,

    University of Liverpool, n.d.]

    The involvement of design contractors within the traditional system is so high and

    even before the tendering processes start, the design will be finalized and so the

    building contractors have absolutely little role in the constructability of a particular

    design. As a result of the building act, the client should be a good professional and

    also has to have a great knowledge about the construction industry. The client has to

    ensure that an initial study to be carried out on behalf of the resource consents, PIM or

    any other troubles which can have an effect on the delay of the building consent.

    Under this Act, the client is loaded with the problems of compliance and other issues.

    The design contractor is totally away from the building process. Building process is

    just confined to the minimum quality just because the major focus is not on the client

    rather its on the cost which results in the performance to the minimum level. After

    completing the project successfully, the client has to apply for the CCC and he should

    have all the certificates related with the construction like producer statements to avoid

    the possible delay of the project.

    FIGURE 2: A TRADITIONAL PROCUREMENT SYSTEM

    [Effect of Procurement Systems on the Performance of Construction Projects, Rosli

    Abdul Rashid, Ismail Mat Taib, Wan Basiron Wan Ahmad, Md. Asrul Nasid, Wan

    Nordiana Wan Ali & Zainab Mohd Zainordin, (Department of Quantity Surveying,

    University of Technology Malaysia), June 2006 ]

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    2. Design & Build Procurement System

    D &B system is the one in which a client approaches a D&B contractor and contracts

    him for carrying out the entire project starting from the design phase to the

    completion of the construction work. When the client approaches the contractor he

    might have some ideas within his mind and it is sketched with the help of a design

    contractor and he decides whether the project is buildable or not. If not, the design

    contractor redesigns it to make it into a workable design. We can gain a lot of time

    and cost under this system since the workability and feasibility of the project is

    estimated by the designers within the design stage.

    Under this Act, there are many things which are not clear at time of signing the

    contracts. The contract is contracted even before sending to council for approval. In

    such a situation there can be a chance of time delay for the approval, redesigning etc.

    So under such a situation its the contractor who must take the entire responsibility of

    the risks involved. Issues regarding the consents, LBPs, mandatory warranties and

    compliance can be easily tackled by contractor, if the initial research was carefully

    done. A better design resolves the majority of the problems. Advantages of a D&B

    system are

    Single-point responsibility for design and construction

    Inherently more buildable projects and proposals submitted

    Prices which reflect more closely the ultimate cost to the client

    Overlap of design and construction phases leading to early completion

    onsite, which in turn saves a lot of money

    [http://www.scquantitysurveyors.com/procurement.html, n.d.]

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    FIGURE 3: A D & B PROCUREMENT SYSTEM

    [Effect of Procurement Systems on the Performance of Construction Projects, Rosli

    Abdul Rashid, Ismail Mat Taib, Wan Basiron Wan Ahmad, Md. Asrul Nasid, Wan

    Nordiana Wan Ali & Zainab Mohd Zainordin, (Department of Quantity Surveying,

    University of Technology Malaysia), June 2006 ]

    3.3 MANAGEMENT PROCUREMENT SYSTEM

    The management of the design and construction of a project is contracted to a sub-

    contractor who acts as a management consultant from the part of the client. The

    building work itself is given to various sub-contractors who get the contract approval

    either with the management contract or client. The entire responsibility of the design

    and construction of the project is in the hand of a project management contractor. Asthere are so many contracts, sub contracts etc. this system is a lot more complex as

    compared with the two previous models.

    FIGURE 3: A MANAGEMENT PROCUREMENT SYSTEM

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    Like the D&B system, the client is not actively involved during the project. The

    management contractor supervises the entire activities and the updation of the project.

    [Effect of Procurement Systems on the Performance of Construction Projects, Rosli

    Abdul Rashid, Ismail Mat Taib, Wan Basiron Wan Ahmad, Md. Asrul Nasid, Wan

    Nordiana Wan Ali & Zainab Mohd Zainordin, (Department of Quantity Surveying,

    University of Technology Malaysia), June 2006 ]

    3.4 Private Public Partnerships (PPP)

    Public Private Partnerships (PPPs) can be defined in general as an agreement between

    the Government and private sector to deliver specified public services over a long

    period such as a decade or two. According to Peter Owles, it is a contractual

    agreement formed between public and private sector partners that meets clearly

    defined public needs through appropriate allocation of resources, risks and rewards

    and which may also involve the use of private sector capital to wholly or partly fund

    an asset that would otherwise have been purchased or constructed directly by a

    government agency. [http://www.conferenz.co.nz/whitepapers/public-private-

    partnerships-and-new-zealand-land-transport-projects, n.d.]

    4. IMPACT OF BUILDING ACT ON PROCUREMENT SYSTEMS

    By the introduction of the building act there were a lot of issues revolving round the

    construction work and processes. The last two decades of NZ construction industry

    has undergone a series of changes. It all started when the building act was introduced

    in 1991. It led to the greater innovation, better building practices, efficiency and

    competitiveness within the building industry which together declined the building

    industry training and a greater relaxation of standards too. It resulted in the Leaky

    Building crisis. The Government introduced the new act for the improvement of the

    building practices and safety of people while it ultimately resulted in the decline of

    various reputed organisations brought about by the immense competitions, squeezed

    margins and corrupt practices. The Government introduced another act to help the

    leaky house owners, contractors, sub-contractors and the building industry as a whole

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    which was known as the Weather tight Homes Resolution Services Act. But again

    it also became worthless which needed further improvements.

    The Building Act 2004 (and the acts which was amended in the following years 2005,

    2007, 2008 & 20090 was aimed at lifting the standards in the construction industry

    and it was BA04 that introduced the LBP scheme to be competitive in the

    construction industry. Building Act 2004 still has to solve two major problems in the

    construction industry.

    1. Building industry was stuck by the government policies and inefficiency,

    which made the Councils very risk-averse, and there was no regularity in

    planning.2. Residential projects ended in clashes between the building professionals and

    the house owners and it was quite frequent than ever before. Disputes were

    extremely expensive and time-consuming to resolve, because not much of the

    projects were covered by insurance and not enough of the homeowners and

    builders are good at resolving disputes practically. To solve these issues,

    amendment acts were brought into action.

    On 23 November 2010 a bill was introduced which spells out more clearly about the

    duties and responsibilities of the designers, builders, housing owners and Councils.

    The building consents were grouped into four depending upon the complexity of the

    projects namely low risk, simple residential, standard and commercial. The second

    amendment bill issued somewhere in between 2010 after the first one, mainly

    focussed on the house owners protection measures. This bill describes about the

    mandatory building contracts that shows the home owners rights, necessity of the

    builders to show their qualifications and the possibility of whether they offer a third

    party warranty, mandatory twelve month defect liability time, and better proceduresfor solving disputes between clients and building practitioners.

    It further continues its work on the building consent process to make it much simpler;

    and the Legislation too is making efforts from its part to clear the defects within the

    Building Code. It also aims at investigating the different procedures on how to

    improve efficiency in the construction sector. It is also evaluating whether the rules

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    around penalty for defective labour needs a modification. All the above mentioned

    activities are improving the construction industry and its different practices. When all

    of these activities become completely active, the entire scenario of the construction

    industry will be totally different from which we used to see [Where are we up to with

    the building law reforms? Geoff HardyJanuary 2011 newsletter]

    4.1 ISSUES OF BUILDING CONSENTS

    Once the building act was introduced, there were a lot of problems related with the

    approvals of the building. The Department of Building and Housing (DBH) is the

    organization which decides on how the consent authorities perform their building

    control tasks under the 2004 Building Act. As the building act was passed there were

    a lot of complaints regarding the BCA. The major problems highlighted was

    Consenting Process

    About half of the issues were regarding the core building processes mainly receipt,

    evaluation, permitting and issuing. Many other issues were related to the timeliness, cost

    etc. Majority of the issues which came front show that there is a lot of deficiencies with

    the current assessment processes. The specific problems related with the consenting

    authority were

    The request of additional information along with the consent application which

    the applicants consider to be completely as a crap or waste of money, time and

    effort.

    Allocation of technical staff without prior professional experience to tackle with

    the consent application processes.

    Assessing compliance against a standard which is definitely much higher than the

    one required by the New Zealand Building Code.

    Technical Competence & Professionalism

    The technical staffs within the building consent authority without prior knowledge,

    skills, or experience are assigned to the building consent work. The main concern

    about the technical competence of the staff were related to their understanding and

    assessment on

    Legislative requirements (BA04 and the regulations)

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    Accessibility compliance needs

    Fire and weather tight compliance requirements

    Timeliness

    The concern about the time was that the consent processing and approval functions

    were taking much time than required. The council were

    Not granting consent applications within 20 working days which is abided by act

    that it is mandatory

    Asking for further detailed information in close proximity to the 20 working day

    time limit.

    Approval and certification functions

    The concerns over the certification was that BCAs were

    Allowing public buildings to operate and publically open without code

    compliance certification

    Providing false advice by informing consent applicants that code compliance will

    be issued to them and then changing their stands.

    Accepting non-compliant construction works, including disabled entry and

    facility provisions of the Building Code.

    Communication and customer service

    There were a lot of issues on how the council staffs communicate with their clients and

    deals with general customer care services. Council members were

    Reluctant to get into discussion about issues or problems, or attend phone calls,letters or e-mails

    Not customer centric in their attention and are not prepared to be active in

    addressing issues of the people that they may raise.

    Lacking to coordinate between Council planning and building control

    departments

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    Overly risk adverse and mainly focussed in their decision making by a fear of

    liability

    Enforcement and follow-up

    BCAs were not noticing unauthorised building work and delivering notices to fix

    without relevant detail for Building Code contraventions. Specific concerns were

    about

    Follow-up of unauthorised building work taking place

    Manner of issuing notices without solution (e.g., issuing a notification without

    clearly defining the remedies and the reasons)

    [Performance improvement lessons from the formal complaints about building consentauthorities, DBH, January 2010]

    Despite of the continued attempts, of the council, the developers say that the reform will

    only prohibit the growth. As per the survey report conducted by the CTMA World,

    overall satisfaction with building consents has dropped to 35.6% in 2008 from 55.9% in

    2007. This was a survey inclusive of different professionals including developers,

    architects, builders and the house owners. The major complaints the building

    professionals have are about the complexity of processes, the cost of consent to

    applicants and turnaround time.

    [http://www.nbr.co.nz/article/building-industry-says-consent-processes-prohibit-growth-

    100094, Jazial Crossley, April 06, 2009]

    4.2 ISSUES OF LICENSED BUILDING PRACTICIONERS

    Licensed Building Practitioner was the latest innovation brought out by the building

    act 2004. This was introduced with an overview that people who want to build a

    house or a commercial building can have much confidence in the building

    practitioners that they are competent, experienced and they build the house following

    the building act and regulations. Licensed Building Practitioner (LBP) scheme is a

    competent based policy. People who have good track record in the building sector can

    show their skills and knowledge publically and they are officially recognised. LBP

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    has paved the way towards a competitive construction industry where the

    organisations need to improve their design and build strategies in order to survive.

    [http://www.dbh.govt.nz/lbp, n.d.]

    According to Building and Construction Minister Shane Jones,"The licensing scheme

    requires practitioners to show they have the skills and experience to do the job

    properly. It also gives good builders, who are not paper-qualified, a real opportunity

    to be recognised for the great work they do. Industry has been hugely supportive in

    creating this licensing scheme, and now for the first time, individuals have the chance

    to demonstrate their competence, and to apply for a nationally-recognised mark of

    quality." [http://www.beehive.govt.nz/release/licensed-building-practitioner-scheme-good-start, Shane Jones, January 3 2008]

    There are several advantages for the LBP which are

    It makes designers and workers to maintain and improve their skills and

    knowledge through better training and expert development.

    It makes the profession accountable

    LBPs can certify their own job and the work of others thus reducing the

    processing time

    [http://www.beehive.govt.nz/speech/announcement-building-act-review-and-

    licensed-building-practitioner-scheme, Maurice Williamson, 27 August2009]

    LBP gives more freedom to the consumer and the rights of the building practitioner

    get reduced. LBP brings credibility back to the construction and building sector.

    Building professionals who wish to become the head of a project will have to become

    much more cautious about the contracting practices that they make, management

    systems within their organisation, and finally about knowledge of the Building Code.

    Builders who are self-employed will have a lot of pressure on their head to merge

    their works with larger building firms. [Where are we up to with the building law

    reforms? Geoff HardyJanuary 2011 newsletter]

    4.3 MANDATORY WARRANTIES

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    A warranty under construction context implies that the one who constructs the home,

    the builder, guarantees the home owner that the construction will be completed in

    accordance with the building contract and that the house will be free from all kinds of

    defects. Builders warranty eases the tension of the home owners and investors that

    they do not need to suffer, in case that the builder experiences financial or any other

    difficulties which could have a bad effect on the home owner, or in the case that the

    constructed home is defective. So in other words it is a guarantee to satisfy the

    customer that whatever happens for the building, the builder should bear the

    responsibilities. [http://www.bonded.co.nz/builders_warranty.html, n.d.]

    Third party insurance for the house owners which covers the losses including incompleteor defective construction will be the base in every case and so there will be very less

    projects which can be settled with formal discussions and there will be clashes between

    the building personnel and the house owners and the builder will be controlled by the

    board of the Building Practitioners. It ultimately results in the increment of risk and

    money within the construction sector.

    5. PRESEENT ECONOMIC SITUATION NZ

    Economy of NZ has always been relying on natural resources. Although there was an

    increase for the national GDP, the economic growth is slowing down. The boost in

    GDP reflects the high consumption rate, investment levels and trade activities. The

    building and construction industry contributes a major part to the NZ economy.

    Construction industry has been showing steady rise recently until inflation where it

    contracted gradually. Residential building activities have increased recently, while the

    number of consents issued also got increased. Under the construction industry, the

    salary of the workforce increased, which reflects in the shortage of skilled workers

    under building sector. Material costs have also increased significantly.

    The number and value of Non-residential building consents started trending upwards,

    and this trend continues even today despite a recent decline as a result of the

    Christchurch quakes. Government spends a lot of amount for new hospitals and

    prisons together with the demand of the public for more commercial buildings.

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    Recently so, a lot of big infrastructure projects, like roads and bridges, which are the

    pillars of development, are being done that keeps the non- residential building

    activities much higher in the future. [http://www.dbh.govt.nz/soi0710-partc2, n.d.]

    6. CONCLUSION

    Building consents play a vital role in assuring health and safety and that is why

    Government is so particular about every aspect of the building sector. What needed is

    still not accomplished, i.e., this was not what the Government was aiming at. There

    must be amendments again in order to make sure that the building processes are done

    following the act while the project is done in time, cost and quality. For this we must

    make sure that all the members within the building control learn and understand what

    building act is and its technical application. They must provide clear and

    understandable data for the customer. Productivity of NZ economy has been declining

    for the past two decades and also the education level of the work force is much below

    than average. Another problem is related with the bid. Always in NZ economy, the

    lowest price tender gets the contract which means the quality of building will be low.

    Having done with that, we can further look into the green building techniques. NZ is a

    country where the renewable resources are used very low. The implementation of

    green technologies can alleviate the present crisis to some extent.

    5. REFERENCES

    Department of Housing and Building (DBH). Retrieved 01/08/2011 from

    http://www.dbh.govt.nz/

    Department of Housing and Building (DBH). Retrieved 01/08/2011 fromhttp://www.dbh.govt.nz/blc-building-act

    Department of Housing and Building (DBH). Retrieved 01/08/2011 fromhttp://www.dbh.govt.nz/ba-about-the-building-act

    Waikato Regional Council. Retrieved 29/07/2011 from

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    http://www.waikatoregion.govt.nz/Consents/Resource-consents/Activities-requiring-consents/

    Nelson City Council. Retrieved 03/08/2011 from

    http://www.nelsoncitycouncil.co.nz/what-is-a-building-consent/

    Property Institute, Data taken on 01/08/2011 fromhttp://www.propertyelearning.co.nz/mod/resource/view.php?id=264

    Department of Housing and Building (DBH), Retrieved on 29/07/2011 fromhttp://www.dbh.govt.nz/pim-guidance

    Department of Housing and Building (DBH), Retrieved on 09/08/2011 fromhttp://www.dbh.govt.nz/blc-building-consentinspect-process

    What Is A Producer Statement? Geoff Hardy, October 2010. Data taken on09/08/2011 from

    http://www.madisonhardy.com/LinkClick.aspx?fileticket=%2BVl997MXedA%3D&tabid=101&mid=510&language=en-GB

    Code Compliance Certificate, North Shore City Council, December 2009, Retrievedon 12/08/2011 from,http://www.northshorecity.govt.nz/Services/ConsentsAndCompliance/BuildingConsents/Documents/CodeComplianceCertificate-information.pdf

    Christchurch City Council, Data taken on 13/08/2011 from

    http://www.ccc.govt.nz/homeliving/buildingplanning/buildinginspections/buildingwofandcompliance.aspx

    Department of Housing and Building (DBH), Retrieved on 09/08/2011 fromhttp://www.dbh.govt.nz/bofficials-bca

    Department of Housing and Building (DBH), Retrieved on 10/08/2011 fromhttp://www.dbh.govt.nz/lbp

    Bonded NZ Surety Brokers, Data taken on 12/08/2011 fromhttp://www.bonded.co.nz/builders_warranty.html

    Review of traditional construction models and a comparison of product DevelopmentProcesses with other industries, Unit 3, Halim, University of Liverpool. Data taken

    on13/08/2011 from

    http://www.liv.ac.uk/~halim/SECTION1UNIT3.pdf

    Effect of Procurement Systems on the Performance of Construction Projects.Rosli Abdul Rashid, Ismail Mat Taib, Wan Basiron Wan Ahmad, Md. Asrul Nasid,

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    Wan Nordiana Wan Ali & Zainab Mohd Zainordin. June 2006 Retrieved on12/08/2011 from

    http://eprints.utm.my/790/1/Procurement_performanceRosli.pdf

    Seamus Culley (SC) Quantity Surveyors, Data taken on 15/08/2011 from,http://www.scquantitysurveyors.com/procurement.html

    Public Private Partnerships and New Zealand Land Transport Projects, Peter Owles,Data taken on 16/08/2011 from

    http://www.conferenz.co.nz/whitepapers/public-private-partnerships-and-new-zealand-land-transport-projects

    Department of Housing and Building (DBH), Retrieved on 14/08/2011 fromhttp://www.dbh.govt.nz/UserFiles/File/Building/information%20for/Performance-improvement-lessons-from-formal-complaints-about-

    BCAs.pdf

    Department of Housing and Building (DBH), Retrieved on 12/08/2011 fromhttp://www.dbh.govt.nz/ris-lbp-streamlining#problems

    Announcement on Building Act Review and Licensed Building Practitioner scheme,Maurice Williamson, 27thAugust 2009 . Data taken on 19/08/2011 from

    http://www.beehive.govt.nz/speech/announcement-building-act-review-and-licensed-building-practitioner-scheme

    Performance improvement lessons from the formal complaints about building consentAuthorities, DBH, January 20102, taken on 19/08/2011 from

    http://www.dbh.govt.nz/UserFiles/File/Building/information%20for/Performance-improvement-lessons-from-formal-complaints-about-BCAs.pdf

    The National Business Review, Jazial Crossley, April 06, 2009 and taken on12/08/2011 from

    http://www.nbr.co.nz/article/building-industry-says-consent-processes-prohibit-growth-100094

    Reconstruction Procurement Systems: The 2005 Matata Flood ReconstructionExperience, Kelvin Zuo, Suzanne Wilkinson, Jason Le Masurier, Jetske Van der Zoutaken on 17/08/2011 from

    www.grif.umontreal.ca/pages/ZUO_Kelvin.pdf

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