Politics NZ Politics

[miket12]

I wonder how much PPG have been paid via progress payments and not paid subbies . It will be plenty.
I also wonder what KO paid to take over the sites, if anything, but what their cost to complete is. Another badly managed development contract.

Years ago, I was doing contract drawings for a south Auckland building company called Tuscany Homes. The first house they built was a “nappy valley” 3 bd, 1 bath, 95m2 house…. think Beazley Homes. They worked out a sq. m. rate from that and decided they could build any house for the same rate. Of course, they couldn’t and went under within three years. They were using deposits and progress payments from their freshly started projects to finish off older projects.

The three main things they got wrong. Firstly, not employing a QS to price every project and determine the quantity of materials required. Secondly, building more upmarket houses at a “nappy valley” price rate. And, thirdly, not having individual accounts for all their projects so they had no idea what profit or loss they were making on each one.

What annoyed me most was the owner of the business knew he was calling in the liquidators on a Monday but had a hardscaping company work on the weekend to doing fencing, planting and driveways on four projects…. he knew they’d never get their money.

Last I saw, he had three other housing companies in Northland go under…. including one where he negotiated with suppliers to build a showhome at a reduced cost for their materials they supplied. It was supposed to be open for 12 months and the building company would advertise their products. Less than three months after that, the company went bust….. but not before he transferred the house to a family member.

 

[snake77]

What annoyed me most was the owner of the business knew he was calling in the liquidators on a Monday but had a hardscaping company work on the weekend to doing fencing, planting and driveways on four projects…. he knew they’d never get their money.

Last I saw, he had three other housing companies in Northland go under…. including one where he negotiated with suppliers to build a showhome at a reduced cost for their materials they supplied. It was supposed to be open for 12 months and the building company would advertise their products. Less than three months after that, the company went bust….. but not before he transferred the house to a family member.

That calling in the company to work when he knows he is going to liquidate on the Monday is pretty rough. I had a company where we all returned to work after the Christmas break. We had a meeting which wasn't unusual as we had an all staff meeting every Monday. The first announcement "A bit of bad news we are closing".

He had staff working over the holiday period even though he knew they were closing.

He also had to major contracts sign again for another year. One of which was the IRD. These would have been used to pay our last month's salaries and potentially the redundancies. More likely he wanted to line his own pockets on the way out. There was a bit of conjecture if Directors should/would get redundancies.

6 months to a year later he was running another business. Sure a different industry and different sized business. But after owing one vedor over a million dollars (may have been 3 mill) plus essentially screwing over the IRD I'm surprised more didn't come of it.

 

[wizard of Tauranga]

I had a company where we all returned to work after the Christmas break.

Typically companies wind up prior to Christmas so they don’t have to pay holiday pay and all the stay days with no chargable work done.

 

[wizard of Tauranga]

The media has no one to blame but themselves:

The media have became just a lobby group for the left highlighted by the post election reporting.

The poll proves Winston was right along. Jack must be sweating wondering when the utu catches up with him…

 

[Bay39er]

The media has no one to blame but themselves:

View attachment 6630
The media have became just a lobby group for the left highlighted by the post election reporting.

The poll proves Winston was right along. Jack must be sweating wondering when the utu catches up with him…

See the responses to posts #8124 & #8126

 

[wizard of Tauranga]

See the responses to posts #8124 & #8126

Problem is I’ve been saying about the media bias for a while and it’s all come true.

Histories on my side

 

[wizard of Tauranga]

Problem is I’ve been saying about the media bias for a while and it’s all come true.

Histories on my side

In 10 years time we will look back at the Auckland extended lockdown and the Wellington protests as a turning point in NZ history.

I believe it costs Jacinda her job, Labour the election, the media it’s credibility and Newshub it’s newsroom.

Weather you agree or not, NZ has forever changed since that time.

 

[Rizzah]

Newshub closed because google and meta have captured advertising revenue. Not because of the lockdown.

 

[wizard of Tauranga]

Newshub closed because google and meta have captured advertising revenue. Not because of the lockdown.

Definitely a factor.

But the lack of trust in the media directly leads to people switching off and looking for other media sources. And the media has lost half its credibility post covid. This flows into advertisers ALSO choosing to spend their money elsewhere.

I honestly believe the rot set in when news became more opinion based. Just like with politics, people get sick of a world view after hearing it for long enough and switch off. Mainstream media that’s catering for all, has to be a-political or it inevitably ends up switching off people.

Clearly left or right will always has its niche.

 

[Rizzah]

Definitely a factor.

But the lack of trust in the media directly leads to people switching off and looking for other media sources. And the media has lost half its credibility post covid. This flows into advertisers ALSO choosing to spend their money elsewhere.

I honestly believe the rot set in when news became more opinion based. Just like with politics, people get sick of a world view after hearing it for long enough and switch off. Mainstream media that’s catering for all, has to be a-political or it inevitably ends up switching off people.

Clearly Left or right will always have its niche.

It becomes more opinion based when there isn't enough money in the new orgs to properly fund journalism.
For the long term success of NZ, they should have continued a govt journalism fund, dolled out like NZ on Air does for other media.

 

[wizard of Tauranga]

Newshub closed because google and meta have captured advertising revenue. Not because of the lockdown.

On the lockdowns, etc, I believe it’s had a huge effect on society.

Less people voting, less interested in the census, less trust in police and authority, less kids in school, etc.

More sovereign citizen type people, more nutcases emboldened, more mental health issues, more crime, etc.

I’m not totally blaming Labour or the lockdowns. Covid was a huge event in human history. And society has been strained and regressed as a result.

 

[wizard of Tauranga]

It becomes more opinion based when there isn't enough money in the new orgs to properly fund journalism.
For the long term success of NZ, they should have continued a govt journalism fund, dolled out like NZ on Air does for other media.

Agree on first paragraph.

Semi agree on the second but it had to be done in an a-political way. The media stuffed it up for themselves though by losing the public credibility. That’s on them.

I honestly believe National would have been more open to this if the media coverage over the last few years was more balanced. But it wasn’t.

 

[miket12]

dean, more on the Build Partners saga...

Subcontractor complains of money owed by Build Partners on state housing projects, boss defends​

A subcontractor from a troubled Build Partners’ state housing site claims he is owed “hundreds of thousands of dollars” but the company chief executive said the business had tried to be as supportive of subcontractors and suppliers as possible when price escalations caused problems.

Crown agency Kāinga Ora has taken control of four residential projects for 91 new state apartments previously being constructed by housing construction specialist Build Partners after the state agency said it was contacted by several Build Partners’ subcontractors claiming they had not been paid for their work.

The subcontractor said he hoped Kāinga Ora would pay his bills and those of many others on the project also claiming to be owed money.

He expressed great dissatisfaction with the project his business worked on and said he was left disillusioned.

Mounting bills went weekly without payment.

Patrick Dougherty, Kainga Ora construction and innovation general manager, said: “Kāinga Ora has contacted all known subcontractors and we are meeting with as many as we can this week and next to verify the information provided to us by Build Partners on the amount they are owed.

“We want to assure all subcontractors impacted that we are working with urgency to ensure they get paid, and we are establishing a plan so work continues on all four social housing developments.”

The subcontractor claimed other subcontractors had not been paid since the end of last year, and that he knew of several struggling as a result.

The man did not want his identity known saying he still hoped Kāinga Ora would pay him for work completed but if he speaks out, he fears the money could be at risk.

Steve Mikkelsen, a director of Build Partners and chief executive of its owner Property Partners, said today he anticipated Kāinga Ora would pay the subcontractors.

“When you’ve got 100 subcontractors calling you every day ... we are not a rogue contractor but a trusted partner with the Government that came unstuck because of the current situation,” Mikkelsen said.

The business had built nearly 700 new state homes, he added.

“My understanding is Kāinga Ora are going to make payments for all subcontractors and suppliers. It’s been a really, really tough market. These projects were priced a long time ago and there’s been a lot of cost escalations.

“We got to a position where we had completion problems with cash flow on these projects. This is pretty standard. It’s nothing new,” he said.

Projects were priced three or more years ago “and you can imagine in the construction business, the build process is 18 months to two and a half years”.

That created a big gap between the contract price and what it was costing to complete, he said.

“We are doing everything we can. We are supportive of the subcontractors and suppliers.”

Problems were not related to modular construction, Mikkelsen said.

The four projects which Kāinga Ora have taken control of are;

• Corner Great North Rd/Cadman Ave, Waterview: 40 units and a community room;
• Hindmarsh St, Johnsonville: 29 units and a community room;
• Fowlds Ave, Sandringham: 15 units;
• Corner Hendon Ave/Hargest Tce, Ōwairaka: nine units.

Kāinga Ora’s move comes amid the Government-ordered, Bill English-led inquiry into the state agency.

The biggest project is Build Partners’ Waterview site for a five-level project.

The 40 units are to have 38 car parks and the company expected a Homestar 6 rating on completion which had been set down for early 2025.

Build Partners’ website described the Johnsonville plot as “a classic tricky Wellington site with challenging access and multiple building platform levels required so this project will provide a combination of both modular and traditional delivery.

“We successfully won this project due to our well-considered approach to the site, community, and environmental approach and our capability in delivering a complete modular three-storey apartment building,” the business said.

The modular apartments would be “totally built and finished in our Auckland factory and transported to Wellington by road”.

“Due to the width of each module, these can be transported on a standard flat deck container truck. With a crane positioned on the road below the site, we will work with the local council and transport authority to minimise site and neighbour access issues,” Build Partners said.

Mikkelsen acknowledged the Johnsonville project “was a hybrid of modular and traditional [construction]. However, the modular component did not contribute to the financial issues on that site”.

Construction costs 25 per cent higher than pre-Covid​

Residential construction costs spiked during 2022 due to Covid-affected supply chain issues, as well as a boom in construction activity. CoreLogic’s Cordell Construction Cost Index (CCCI) recorded a rise of 10.4 per cent that year, higher than overall inflation which was 7.2 per cent.

But the rate of construction cost inflation has fallen since then. In 2023 the index recorded an annual rise of 2.4 per cent while overall inflation was 4.7 per cent.

CoreLogic chief property economist Kelvin Davidson said this week that supply chains had normalised while house-building activity had pulled back, easing the pressure on capacity and therefore cost growth.

“Most costs have stayed relatively stable since the end of 2023 and the CCCI has recorded no significant movement across any particular product or labour rates, which can account for up to half the cost of a new build, excluding land.”

Davidson said the return to more normal construction growth rates would benefit both builders and consumers following unprecedented industry volatility, resulting in construction costs being 25 per cent higher than pre-Covid levels.

“The industry is facing less pressure on workloads and the decline in new dwelling consents suggests this softer phase of construction activity may remain in place for a reasonable period.”

Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.

Build Partners' job: Director says he's doing his best in tough market

'Not a rogue contractor but a trusted partner with the Government that came unstuck.'

www.nzherald.co.nz

 

[Rizzah]

Agree on first paragraph.

Semi agree on the second but it had to be done in an a-political way. The media stuffed it up for themselves though by losing the public credibility. That’s on them.

I honestly believe National would have been more open to this if the media coverage over the last few years was more balanced. But it wasn’t.

It was done in an a-political way, the body that administered the money was similar to NZonAir. The other part(s) are purely in your head and the head of other conspiracy people.

 

[wizard of Tauranga]

It was done in an a-political way, the body that administered the money was similar to NZonAir.

Two issues -
1 - conditions (eg around Maori)
2 - if was not set up as a long term solution hence it created loyalty and appeasement issues to try to maintain that funding

The other part(s) are purely in your head and the head of other conspiracy people.

Not according to the poll… data’s says you’re in the minority here.

 

[Rizzah]

Two issues -
1 - conditions (eg around Maori)
2 - if was not set up as a long term solution hence it created loyalty to try to maintain that funding

Bullshit, your saying Labour got a free ride in the media?
And this is because of an a-political journo fund? Where is the evidence? And you can't just use feels. The media confidence report is also not evidence of perceived media bias either.

 

[wizard of Tauranga]

Bullshit, your saying Labour got a free ride in the media?
And this is because of an a-political journo fund? Where is the evidence? And you can't just use feels. The media confidence report is also not evidence of perceived media bias either.

Other polls have clearly shown journalists have a natural left biased and it definitely shows through.

The evidence is the poll, everyone switching away from MSM (numbers support this) and them shutting due to people moving their spend elsewhere.

Now obviously there’s a bigger trend with how we consume news but that wouldn’t be reflected in a dramatic fall in trust in media foreshadowing media outlets closing.

Govt funding them if there’s no trust is rewarding a failing industry when they actually needed to look in the mirror first.

 

[Rizzah]

Other polls have Cleary shown journalists are left biased.

The evidence is the poll, everyone switching away from MSM (numbers support this) and them shutting due to people moving their spend elsewhere.

Now obviously there’s a bigger trend with how we consume news but that wouldn’t be reflected in a dramatic fall in trust in media foreshadowing media outlets closing.

Govt funding them if there’s no trust is rewarding a failing industry when they actually needed to look in the mirror.

News media has caved in perception and in it's ability to do anything meaningful due to lack of funds, that's it.
We should fund it so it works properly, because it is critical to democracy.

Your last sentence is concerning. Govt should fund it because we need news media and good journalism in this country. Not because it rewards the govt of the day.
The govt could make new laws making google and meta fund it, like they have done in part in Australia.

 

[wizard of Tauranga]

Your last sentence is concerning. Govt should fund it because we need news media and good journalism in this country. Not because it rewards the govt of the day.

Even the media needs checks and balances. Funding it ‘just because’ when they have failed (massive trust issues) is daft. WERE NOT GETTING GOOD JOURNALISM!

The biggest falls in trust: RNZ fell 7.5 per cent, Newshub 7.8 per cent, TVNZ 9.4 per cent, and Whakaata Māori TV 14.6 per cent. All left biased and currently some of the biggest govt funded organisations.

75 per cent of people surveyed now say they avoid the news. (World leading where the international average is only 40 per cent). Blame the internet companies aye…

Why automatically fund something people are so fed up with they actively avoid it?

The main AUT report on media trust provides some details of what the public say is their problem with the New Zealand media: “Those who say they don’t trust and/or avoid the news are most concerned about the negativity of news, including its impact on their mental health, and what they perceive as political bias and opinion masquerading as news. 82 percent said news reflected the political leaning of the newsroom.

Massey University’s Worlds of Journalism survey in 2022. It found that about two-thirds (65 per cent) of journalists identify as being leftwing, 23 per cent call themselves centrists, and 12 per cent say that are rightwing

Are Massey University and AUT conspiracy theorists? Those that continue to have their head in the sand and blame everything else, when the actual answer is closing newsrooms, need to reflect if their bias is blinding them to reality.

 

[Damo]

This is purely my opinion but I think Newshub and TVNZ failing is a lot due to the changing in the times, hardly anyone I know even watches TV anymore.
This coming from a 30 - 40 year old who works with a lot of <30 year olds as well as people fresh out of school.