Proposed NZMRM Systems Warranty Initiative
The New Zealand Metal Roofing Manufacturers (NZMRM) is an incorporated body representing the majority of metal roofing manufacturers in New Zealand. Metal roofs constitute over 95% of all Commercial roofs and around 75% of all Residential roofs in New Zealand. The NZMRM is a voluntary organisation and provides the metal roofing and cladding industry with a vehicle to lift standards, by addressing technical and regulatory issues at an Industry level, and to “increase the size of the pie”, by targeting generic promotional opportunities.
In 2002 the New Zealand Metal Roofing Manufacturers launched SCOPE magazine, which promotes the benefits of steel roofing products to some 10,000 designers, builders and roofing companies throughout New Zealand.
In 2003 the NZMRM published the Code of Practice, which has become the Industry guidance document for the selection, design and installation of metal roofing and wall cladding systems.
In 2011 the NZMRM commenced work on an Industry Systems Warranty program. This work was undertaken in direct response to the pending Building Act amendments, which come into effect 01 January 2015, and which require Builders to offer “10 year regime” responsibilities for materials and workmanship. These pending changes have created a “vacuum” opportunity in the market that are not covered by any of the existing Supplier component warranties. Furthermore, the proposed Systems Warranty product is complementary to the existing Builder Warranty & Guarantee products and its proposed cover extends beyond all of the existing guarantee products in the market.
During the last four years the NZMRM has been actively working on an Industry Systems Warranty program for pre-painted longrun products used in new and re-roof residential applications. The development of the proposed NZMRM Systems Warranty program has been an organic journey involving Members, Suppliers and Industry Partners, including the Roofing Association of New Zealand. Latterly the NZMRM has met with the Certified Builders and Master Builders Associations in regards to the proposed program. In due course the NZMRM will meet with ADNZ, NZIA and BOINZ representatives and Building Supply Merchants and other Industry participants in regards to the proposed program. The potential roll out of the proposed Systems Warranty program into other product areas and applications such as Wall Cladding, Metal Tiles and Rainwater Goods will be dependent upon demand.
The key value proposition supporting the proposed Industry Systems Warranty program is that it;
In 2002 the New Zealand Metal Roofing Manufacturers launched SCOPE magazine, which promotes the benefits of steel roofing products to some 10,000 designers, builders and roofing companies throughout New Zealand.
In 2003 the NZMRM published the Code of Practice, which has become the Industry guidance document for the selection, design and installation of metal roofing and wall cladding systems.
In 2011 the NZMRM commenced work on an Industry Systems Warranty program. This work was undertaken in direct response to the pending Building Act amendments, which come into effect 01 January 2015, and which require Builders to offer “10 year regime” responsibilities for materials and workmanship. These pending changes have created a “vacuum” opportunity in the market that are not covered by any of the existing Supplier component warranties. Furthermore, the proposed Systems Warranty product is complementary to the existing Builder Warranty & Guarantee products and its proposed cover extends beyond all of the existing guarantee products in the market.
During the last four years the NZMRM has been actively working on an Industry Systems Warranty program for pre-painted longrun products used in new and re-roof residential applications. The development of the proposed NZMRM Systems Warranty program has been an organic journey involving Members, Suppliers and Industry Partners, including the Roofing Association of New Zealand. Latterly the NZMRM has met with the Certified Builders and Master Builders Associations in regards to the proposed program. In due course the NZMRM will meet with ADNZ, NZIA and BOINZ representatives and Building Supply Merchants and other Industry participants in regards to the proposed program. The potential roll out of the proposed Systems Warranty program into other product areas and applications such as Wall Cladding, Metal Tiles and Rainwater Goods will be dependent upon demand.
The key value proposition supporting the proposed Industry Systems Warranty program is that it;
- Applies when the Product, Supplier or Installer is no longer around
- Mitigates Builders Building Act Responsibilities
- Supports Roofers Building Act Responsibilities
- Supports, in conjunction with the NZMRM Code of Practice, best practice design, products and systems.
- Becomes an inclusive “Quality Mark” for a published list of Approved Suppliers and Products
In addition the proposed Industry Systems Warranty program reduces Industry compliance costs, supports professional and ethical behaviour, via a Systems Warranty Supplier Code of Conduct, inhibits the inappropriate substitution of customer specified products and provides the NZMRM with a financial vehicle to promote metal roofing growth opportunities.
The Certified Builders and Master Builders Associations clearly understand the value proposition of the proposed Systems Warranty program and are supportive of it in principal, subject to viewing the final offer.
The NZMRM expects to have provided committed Members , Suppliers and Industry Partners with a “beta” version of the proposed Systems Warranty program for legal, peer and financial review by mid-December 2014. The NZMRM understands that the December circulation of the Systems Warranty management company and product documents will essentially be the “starting point” in the development of a successful and sustainable Systems Warranty program and that there are still a number of unresolved issues including the ongoing compliance requirements for existing products and the testing and verification requirements for new products. The NZMRM is also working on a final review of the Building Amendment Act, the Fair Trading Act and the Consumer Guarantees Act to ensure that they are fully accounted for within the proposed Systems Warranty program. However, subject to there being no “show stopping” issues and a favourable review of the proposed Systems Warranty management company structure and product options, the actual introduction of a NZMRM Systems Warranty program would then be dependent upon it being accepted by the NZMRM Members at the 2015 Annual General Meeting or an earlier Special General Meeting.
Though the catalyst for the proposed Systems Warranty program has been amendments to the Building Act requiring Builders to offer “10 year regime” responsibilities for materials and workmanship and for Warranty providers to prove that they are financially able to meet their long term liabilities, the proposed Systems Warranty program will also incorporate recent changes to the Fair Trading Act and Consumer Guarantees Act.
The primary intention behind the proposed Systems Warranty program is to make it more attractive for Designers, Builders, Roofers and Homeowners to specify Systems Warranty approved products and suppliers by providing them with a cost effective “minimum performance" backstop warranty program that reflects the “fit for purpose” regime requirements of the Building Amendment Bill. To achieve this the NZMRM will be actively working with Industry Suppliers, including RANZ, to include a best practice design and performance requirements section within an updated version of the NZMRM Code of Practice, which will set the minimum standards required of the Systems Warranty.
Under the proposed program Roofers, Builders and Homeowners would be able to choose from a “Warranty Continuum”, ranging from the existing component Warranty options through to the proposed Supply & Install Systems Warranty program, as best suits the needs of their individual requirements and the project opportunity. It is also envisaged that NZMRM members would lodge the individual Systems Warranty applications from a published list of Accredited Suppliers and Code of Practice approved Products as a result of Designer, Builder, Roofer or Homeowner specification. As a result the proposed Systems Warranty program is an incremental value added offer to existing route to market and supply options.
Due to the “minimum performance” baseline requirements of the Systems Warranty program it is highly likely that, in many instances, the component warranties offered by Individual Suppliers will offer additional cover to that of the proposed Systems Warranty, and Suppliers will therefore be actively encouraged to promote their individual value propositions within the Systems Warranty program.
The proposed Systems Warranty program will be run by a separate Warranty company in order to mitigate potential liability issues. The Systems Warranty Management company will also provide Designer, Builder, Roofer and Homeowner customers with the protection of an independent platform to manage Warranty issues, which is of particular value if a Supplier was no longer around. It is also intended that the Systems Warranty Management Company will be a financial vehicle to lift and maintain standards and to actively target metal roofing growth opportunities. It will also provide the Industry with a co-ordinated vehicle to communicate with the Homeowner in regards to their maintenance and sub-trade responsibilities.
The NZMRM is currently targeting a 01 July 2015 launch of the proposed Systems Warranty program subject to it meeting its various “sign off” milestones and being accepted by the NZMRM Members at a March or April 2015 Special General Meeting.
The NZMRM Systems Warranty sub-committee is composed of Darrell Back (Taranaki Steel Formers), Phil Prior (Roofing Industries), Warren Oliver (Franklin Longrun) and Gary McNamara (Consultant). Please do not hesitate to contact Gary McNamara directly on 021 975 891 or gmacconsult@gmail.com if you would like any further information on the proposed NZMRM Systems Warranty program.