Building Customers turn to Quality

PRESS RELEASE : 9 June 2008

Certified Builders Association of New Zealand (CBANZ®)

Building Customers turn to Quality

Certified Builders Association of New Zealand (CBANZ®) is observing a market shift with customers demanding higher quality, says CEO Derek Baxter

“A while ago people were happy to get a guy with a hammer; today customers are more thorough checking out qualifications, previous work and other references,” he says.

For some time now we have also been observing a trend towards substantial renovations and additions. Figures announced today from Statistics NZ support this. “People are not putting their house on the market but spending the money that would otherwise go in fees on an addition or alteration,” Baxter says.

“When you like the area, neighbours and schools zone but have outgrown your house you can adjust it to suit your lifestyle without over capitalising,” he says. “When you don’t have land costs in the equation, now is probably the best time to build.”

Many of the ‘bargains’ on the market at the moment need quite a bit of work so why would you want someone else’s problems.

“Building in the Additions and Alterations (A&A) market requires a whole different skill set to new construction, trade skills are important, but strong communication and relationship between builder and customer is vital. Often people are still occupying their home, and blending the new extension into the existing structure takes real craftsmanship” he says.

“I have heard of a builder doing renovation work who hasn’t moved out of a 5 block radius. He has been handed over on the BBQ and dinner party circuit, and people are still waiting for him to become available” Baxter says.

“Trade qualified builders are therefore partially insulated from the current slowdown as they can switch from new construction to additions and alterations, in particular for customers who want a high quality finish. It is a smaller number of high value construction work out there, at that end of the market quality is remembered long after price is forgotten” he concludes.

Background.

Certified Builders Association of New Zealand (CBANZ) is an association of trade qualified builders. All members must have completed a formal qualification in construction.

CBANZ has over 1500 companies that operate mostly in the residential and light commercial parts of the construction industry.

It is estimated that CBANZ members have a combined turnover of over $2billion.

All CBANZ members are required to offer the Homefirst Builders Guarantee on new residential construction. This 10 year guarantee covers loss of deposit, guaranteed completion and structural warranties. Other guarantees are available for additions and alterations, and labour only construction.

ENDS

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