Proposed NZMRM Systems Guarantee update

Strategic Background

Recent and signalled changes in Law, around Builder liability, Council liability and Risk based consenting, have created a legal environment that is conducive to the development of an extended range of builder guarantees.

On the back of its work with the New Zealand Metal Roofing Manufacturers (MRM), and in response to the new legal environment, Master Build Services (MBS) has commenced discussions with the various Trade Associations in regards to the development of a suite of Industry Systems Guarantee programs. The key value proposition of these voluntary offers is that they will support Builders and HomeOwners, by offering an “alternative remedy”, when a supplier is no longer around.

In holding these discussions MBS are capitalizing on their expertise, and 20 year plus history, in managing builder guarantee programs.

MRM Systems Guarantee Opportunity

The MRM’s development of an exclusive relationship with MBS provides it with a unique Sales & Marketing opportunity to introduce a Standards based Systems Guarantee program (MRG), that sits alongside the existing component warranties, and which will differentiate MRM Members and Suppliers over competitors that are not supported by an independent third party program.

The proposed MRG program has been developed on the basis that;

n Builder guarantees are an established and accepted part of the market
n It covers all metal roofing products used in residential new and re-roof applications
n It provides both materials and supply & install cover
n It can be sold to all Builders and HomeOwners.
n It meets the requirements of the Building Amendment Act, the Commerce Act, the Fair Trading Act and the Consumer Guarantees Act

Specialist Trade Systems Guarantee Programs

The Master Painters Association (MPA) have advised that they intend to undertake a “soft launch” of their Systems Guarantee program in April 2016.

MBS will commence follow-up discussions with the 6 other Specialist Trades following the MRM’s Special General Meeting and the launch of the MPA Systems Guarantee program.

Operational Roll Out and Budget

The MRM are holding a Special General Meeting on Friday 15 April 2016 to vote on the adoption of the proposed MRG program. If adopted, the MRM Systems Guarantee Sub-Committee (Sub-Committee) are targeting a Friday 01 August 2016 “soft launch” of the MRG offer to targeted “early adopters”. The soft launch would progressively gain momentum during 2016, and would cumulate in the Industry wide launch of the program at the ADNZ, BOINZ, Certified Builders, Master Builders, NZIA, and RANZ Conferences in 2017.

If adopted by the MRM Members, New Zealand Steel and Pacific Coil Coaters have committed to providing “seed funding” Sponsorship support to MRS through until June 2018. This funding support, along with other funding sources, covers Contractor Expenses, Promotional Material, Trade Conference Participation, Director Fees and the MRS equity contribution.

Once the business is producing a profit the MRM can review a wide range of initiatives including using MRS as a financial vehicle to achieve its various strategic objectives, which include the development & maintenance of standards, the promotion of the COP and the establishment of the MRM as a Quality Mark.

Supplier Discussions

The Systems Guarantee Sub-Committee are currently in communication with the following Suppliers as a result of Member feedback;

•  Pre Painted Steel:  New Zealand Steel and Pacific Coil Coaters
•  Post Painted Steel:   Gerard Roofs, Metrotile and Metalcraft 
• Fasteners:  Bremick, EDL, Fortress, Konnect, Nuts Bolts & Screws and Ramset
• Underlay:  Paul Industries, Tasman Insulation, TCL,  Thermakraft and Weather Barrier Systems
• Clear Sheet:   Alsynite, Ampelite and PSP
•  Soft Edge Flashings:   DLM and Edging Systems

This list is non-exclusive and any further Suppliers expressing interest in the program will be welcomed.