What worries construction industry professionals most? Rising costs, compliance risks… A senior lawyer and a finance expert highlight issues you must watch!
New Zealand construction business owners have recently faced pressure on several fronts: fewer building consents being issued, persistently high construction costs and increasing difficulty securing finance… These harsh wider conditions have pushed the construction industry into contraction.
New Zealand construction business owners have recently faced pressure on several fronts: fewer building consents being issued, persistently high construction costs and increasing difficulty securing finance… These harsh wider conditions have pushed the construction industry into contraction.
Under this pressure, countless small construction businesses are on the brink of bankruptcy or have already gone under. Yet bankruptcy is just one of the risks currently facing the industry. Industry publication ARCHITECTURE NOW noted in an article that, apart from the risk of bankruptcy, 66% of industry respondents were most concerned about the risks posed by rising construction costs, while 54% said their greatest concern was construction projects’ “regulatory and compliance” risks 。
Against this backdrop, the South Island branch of the New Zealand Chinese Building Industry Association (NZCBIA) will jointly host a series of seminars with Meredith Connell, one of New Zealand’s largest law firms, and BNZ. The first seminar will explore legal and financial knowledge relevant to the construction industry.
Topic one: Can you simply sign a standard construction contract?
Speaker
Simon Rickit
Simon Rickit is a legal expert in property, construction and commercial matters. His experience includes providing specialist legal advice on property transactions, development structures, and construction and infrastructure projects. He has long represented the Auckland and Queenstown councils in these matters and has extensive expertise in public sector projects and transactions.
A standard construction contract may be one of the most fundamental documents in the construction business, but does having one in hand mean everything will go smoothly? In the first presentation, speaker Simon Rickit will examine the many legal risks and common disputes hidden within standard construction contracts. He will uncover the pitfalls and risks involved and offer possible solutions to help you minimise potential problems when signing a contract.
Topic two: How can you ensure you receive the payments you are entitled to on a project? If an earlier quote no longer reflects current costs, how can you reasonably increase your charges?
Speaker
Julia Carlyon
Julia serves a wide range of clients, including major government departments, financial market regulators, listed companies and private property owners. She works across a variety of dispute resolution processes, from litigation at every level of the New Zealand courts to arbitration, adjudication and alternative dispute resolution. She provides responsive, thoughtful advice to clients on breaches of contract and banking arrangements, project liability, negligence, breaches of warranty and tort claims.
At the outset of a construction project, participants have expectations about the costs they will incur. However, when costs rise beyond expectations or a project changes, increasing charges reasonably becomes a challenge. Julia, the speaker for the second presentation, has worked across a variety of dispute resolution processes and has extensive experience in project liability, negligence, breaches of warranty and tort claims. At this seminar, Julia will share how to ensure you receive the payments you are entitled to on a project. Understanding payment rules and contractual terms will help you protect your interests effectively when circumstances change.
Topic three: How to use legal contracts and asset protection measures effectively in joint projects, profit together and exit unscathed when difficulties arise.
Speaker
Royal Reed
Royal Reed
Royal Reed is a senior lawyer with more than 20 years of litigation experience and the founder of the law firm Royal Lawyers. In 2020, she was invited to formally join Meredith Connell (MC) with her team, continuing to focus on a wide range of litigation services for Chinese clients. Her expertise spans immigration, property, overseas investment, compliance across multiple jurisdictions and cross-border litigation. Her keen awareness of different cultural perspectives helps her provide clients with more appropriate legal advice and support.
In New Zealand, finding a trusted partner to undertake a construction project together is common. However, joint projects can present more complex challenges for everyone involved. From project planning and execution to risk management and profit sharing, the parties need clearer legal contracts and appropriate asset protection measures to safeguard their respective interests. Speaker Royal Reed will explain how to use legal contracts effectively to profit alongside your partners. She will also provide a detailed introduction to other asset protection methods that can help you exit unscathed if unexpected circumstances arise.
Topic four: Understanding bank financing policies and processes can improve your chances of a successful loan application and help with risk management
Speaker
Jake Urlwin
Jake is BNZ’s Head of Property for its Central and Southern region, with more than 20 years of experience in commercial property. He has worked in the Australian and New Zealand commercial property industries for more than 20 years, spanning the full credit cycle and holding senior lending and risk roles.
Bank financing is a major source of funding for many construction projects. Understanding banks’ financing policies and processes can help you plan projects more effectively and optimise their funding arrangements. When borrowers discuss financing with a bank, the bank needs a thorough understanding of the borrower or their construction project. Banks also adjust their lending strategies as market conditions change. Keeping up with these policies and meeting their requirements is therefore crucial to a successful loan application. Speaker Jake Urlwin, a property finance head at BNZ, will explain lending policies and processes for commercial property and development projects from a bank’s perspective.