Welcome to issue 3 of Aon Construction’s Know the Drill for 2023. In this issue, we focus on three topics:

• Retention Amendments

• BDO Annual Construction Survey

• Construction Contract Works Insurance – State of the Market

Retention Changes

Amendments to the Construction Contracts Act (CCA), regarding the management of retentions, were passed on 5 April 2023 and take effect from 5 October 2023. 

The management, reporting of retentions and fines for breaches of the CCA clearly falls to the Principal (in contract with the head contractor) and the Head Contractor (in contract with their sub-contractors).

Many leading construction lawyers have put out summaries on the changes, as well as MBIE. Visit: Changes to retention money requirements | Building Performance

The good news is the Aon Retention Instrument still remains a complying instrument under the CCA.  The advantages of the Retention Instrument are numerous but the main one is that it works by protecting a specific dollar amount of retentions so that it is not necessary to hold retention money on trust in the form of cash, freeing these funds u so that they can be used in the business.

Read more on the retention instrument here or contact Warren Tucker warren.tucker@aon.com, +64 27 523 0085

 

Beyond Boom and Bust: A construction industry taking control of an uncertain future – Brought to you by BDO

BDO offers leading accountancy, tax, and advisory services to clients all over New Zealand. Their dedicated Construction Sector team has published their fifth annual BDO Construction Sector Report looking into topics including inflation and interest rates continuing to rise, the Reserve Bank actively pursuing a slowdown in our economy and the impact of climate change on our country and its infrastructure.

Read the full 2023 BDO Construction Sector Report here.
 

Construction Contract Works Insurance – State of the Market

Our latest Aon Construction Insurance Market Insights provides a snapshot of the current state of the insurance market. Read more here

Read the full Aon Insurance Market Insights which includes other key products and market dynamics here.

Get to know Aon Construction

Aon’s specialist Construction practice is second to none in New Zealand - both in terms of experience and size. Get to know some of the team here:

Warren Tucker | Executive Director

Introducing Warren Tucker - the construction insurance expert with a (good) difference. With over a decade of experience at Aon and a 6-year stint as an underwriter, Warren's knowledge of construction insurance and risk transfer mechanisms for contractors is second to none. But it's his commitment to finding practical solutions for his clients that sets him apart.

It was this solution-driven approach that led Warren to develop a brand new insurance product - the Retention Instrument. This innovative product complies with the Construction Contracts Act and is a rare addition to the insurance market. Warren has also expanded his expertise to include insurance performance bonds, giving his clients even more options for managing their risk.

But Warren's passion doesn't stop at the office. As a member of the Devonport Volunteer Fire Brigade for over 17 years, he brings a unique perspective to risk management. Whether he's behind the wheel of a fire truck or in charge as the "boss," Warren is always looking for ways to give back to his local community.

So, if you're looking for an insurance broker who truly understands your needs and is committed to finding solutions, look no further than Warren “the Fireman” Tucker.

Shannon O’Brien | Associate Director

Shannon is an insurance professional with 15 years of experience in the industry. Having worked as a liability underwriter for key insurers in New Zealand, Shannon has now ventured into insurance broking with a focus on the construction sector.

What sets Shannon apart is her ability to combine technical expertise with efficiency, resulting in excellent client experiences. Her passion for providing top-notch service is evident in every aspect of her work.

In her spare time, Shannon enjoys spending quality time with her 12-year-old daughter, exploring various hiking trails. She is also a proud fur mum to a 2-year-old Spitz Mix dog named Lord Dashington.

On top of all this, Shannon has a passion for fitness and is currently training for a marathon. However, she isn’t necessarily sold that running is her thing and she thinks she might pivot back to weightlifting – her first true fitness love.

With Shannon, you can trust that your insurance needs will be in the hands of a knowledgeable and dedicated professional who goes above and beyond for her clients.