Building & Construction Remains Steady in May '07

Building and Construction Industry Remains Steady in May

The residential building consent figures for May 2007 were almost identical to the same month last year, with only six fewer consents being issued, says the chief executive of the Registered Master Builders Federation, Pieter Burghout.

Statistics New Zealand reported that the value of residential building consents for May 2007 was $734 million - a $64 million increase on May 2006. Of the 2322 new housing unit consents issued in May 2007, a drop in apartment units was offset by 101 new dwelling units compared to May 2006.

Year end results for May 2007 show the number of consents issued for residential buildings, including apartments, had a 1 percent increase, while their value rose by 9.5 percent. Regionally, the largest increases were in Waikato and Otago, while the largest decrease was in Auckland, mainly due to fewer apartments being built.

"The increase in the value of consents in May 2007 continues the trend we have seen in recent months. The flattening out of the actual numbers of consents show that home owners are spending more on building and the quality end of the housing market remains strong. Anecdotal evidence tells us that most Registered Master Builder members are enjoying good volumes of work and will continue to do so in the coming months," Mr Burghout says.

Commercial building consents showed an increase of $3 million in value for May 2007 compared to the same period in 2006, continuing the overall fairly flat trend over the past year.

Statistics New Zealand says the major commercial increase was in office and administration buildings while the largest decrease remains in hotels and other short-term accommodation.

"The current environment of the building and construction industry remains steady. We expect to see more softening throughout the remainder of 2007 and early 2008, but the current trends remain very positive."

ENDS

About Registered Master Builders Federation (RMBF)

* The Registered Master Builders Federation (RMBF) represents New Zealand's premier building companies who pride themselves on delivering the highest quality houses and buildings to their clients

* RMBF has more than 1700 registered master builder member companies nationwide, who employ more than 15,000 employees and subcontractors

* RMBF members represent 65% of every dollar spent on construction

* RMBF has been in existence for more than 100 years, providing industry leadership, training and services for its members

* There are 22 regional Registered Master Builders Associations throughout New Zealand

* Registered Master Builders are assessed on their building experience, trade or professional qualifications, and practical experience before membership is approved. Re-certification of members occurs when required, with checks on their financial viability, client satisfaction and workmanship

* Then engaging a Registered Master Builder for a new home, or alterations or additions (built under either full contract or a labour only contract), clients will be offered a Master Build 7-Year Guarantee, which covers loss of deposit, non-completion of the work, defective workmanship and materials and structural defects (conditions apply)

Checklist for finding a builder

Along with getting your plans in order - you must also choose the right builder for you. Here are some points for you to consider before starting your building project:

* Type of Builder - volume, custom or individual

-- Volume: Larger firms that have building gangs, painting crews, joiners, plasterers etc. They are able to manage the project from beginning to end. They may cost more because they manage the process but they tend to be quick and efficient

-- Custom: These are builders that have set plans which within certain limits, you can customise to your taste. Building from a set plan can be a very economical choice.

-- Individual: These are small one-two person operators. They can offer a lot of flexibility, and provide a greater opportunity for you to be more involved in the whole building process.

* Registered Master Builders - Make sure your builder is a Registered Master Builder. To be registered, they must have proved that they can run a successful business and meet stringent quality standards. They must also be able to guarantee their work with a 7-year Master Build Guarantee. This is separately guaranteed by the Registered Master Builders Federation up to a certain limit.

* Type of home - Make sure you select a company or builder that has extensive experience constructing homes in your price range and general design style.

* Reputation - Reputation is important. Look for an established builder or building company with an extensive, satisfied client list.

* Compatibility - Building a home is a highly personal and emotional experience. Question and listen to everything about prospective builders. What do other people say about the builder and what does your instinct say?

* Warranty - You should be offered a comprehensive written warranty.

* Price - The cheapest price may not be the best. Remember you need to trust this builder and a good working relationship is essential for a successful project.

* Do your homework - Look at more than one option, even if you have a preferred builder in mind. When you get quotes, tell the builder you are getting other quotes - they will appreciate your honesty.

* Award Winning - Registered Master Builders build award winning houses. Awards are given to entries that are judged to be 50-80% higher than industry standard, so if your builder carries a quality mark - you can be assured of building excellence.

© Scoop Media