New Zealand MRM Proposed Systems Guarantee Program
Who are NZMRM?
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.
What publications have NZMRM written?
2002 - launched SCOPE magazine, which promotes the benefits of steel roofing products to some 10,000 designers, builders and roofing companies throughout New Zealand.
2003 - 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.
2011 - commenced work on an Industry Systems Guarantee Program. This work was undertaken in direct response to the Building Act Amendments, which came into effect on 01 January 2015, and which require Builders to offer “10 year regime” responsibilities for materials and workmanship. These 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 Guarantee 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.
What work has been done on the proposed Systems Guarantee Program?
During the last five years the NZMRM has been actively working on an Industry Systems Guarantee Program for Pre and Post Painted Longrun, Metal Tile and Rainwater products used in new and re-roof residential applications. The development of the proposed NZMRM Systems Guarantee program has been an organic journey involving Members, Suppliers and Industry Partners, including the Roofing Association of New Zealand. The NZMRM has also held introductory meetings with ADNZ, BOINZ, Certified Builders, Master Builders and NZIA representatives in regards to the proposed program and it will soon meet with Building Supply Merchants and other Industry participants. It has also sent out a market wide update to all Architects, Builders and Specialist Trades in November last year.
The NZMRM has provided its Members and Suppliers with a “beta” version of the proposed Systems Guarantee program which has recently been legally reviewed by Simpson Grierson, who have found that the proposal meets the various requirements of the Building Amendment Act, the Commerce Act, the Fair Trading Act and the Consumer Guarantees Act. The NZMRM is now in the process of developing the Systems Guarantee product to launch, the adoption of which would be dependent upon it being accepted by the NZMRM Members at a proposed Special General Meeting in March 2016.
The NZMRM is currently targeting an April 2016 launch of the proposed Systems Guarantee program subject to it meeting its various “sign off” milestones and being accepted by the NZMRM Members at a March 2016 Special General Meeting.
Benefits of the proposed Systems Guarantee Program
- Applies when the Product, Supplier or Installer is no longer around
- Mitigates Builders Building Act Responsibilities
- Supports Roofers Building Act Responsibilities
- Supports best practice design, products and systems (in conjunction with theNZMRM Code of Practice)
- Becomes an inclusive “Quality Mark” for a published list of Approved Suppliers and Products
In addition the proposed Systems Guarantee Program reduces Industry compliance costs, supports professional and ethical behaviour, via a Systems Guarantee Supplier Code of Conduct, inhibits the inappropriate substitution of customer specified Accredited products and provides the NZMRM with a financial vehicle to promote metal roofing growth opportunities.
The Certified Builders and Master Builders Associations also clearly understand the benefits of the proposed Systems Guarantee Program and are supportive of it in principal, subject to viewing the final offer.
How will the proposed Systems Guarantee Program help your business?
The primary intention behind the proposed Systems Guarantee Program is to make it more attractive for Designers, Builders, Roofers and Homeowners to specify Systems Guarantee approved products and suppliers by providing them with a cost effective “minimum performance” backstop guarantee program that reflects the “fit for purpose” regime requirements of the Building Amendment Act. To achieve this the NZMRM had been actively working with Industry Suppliers 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 Guarantee.
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 Guarantee products, as best suits the needs of their individual requirements and the project opportunity. If specified the NZMRM members would lodge the individual Systems Guarantee 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 Guarantee is an incremental value added offer to existing route to market and supply options.
Due to the “minimum performance” baseline requirements of the Systems Guarantee 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 Guarantee, and Suppliers will therefore be actively encouraged to promote their individual value propositions within the Systems Guarantee program.
Who will run the proposed Systems Guarantee Program?
The proposed Systems Guarantee Program will be run by a separate Guarantee company in order to mitigate potential liability issues. The Systems Guarantee Management Company will also provide Designer, Builder, Roofer and Homeowner customers with the protection of an independent platform to manage Warranty and performance issues, which is of particular value if a Supplier was no longer around. It is also intended that the Systems Guarantee Management Company will be a NZMRM 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 responsibilities.