Bricks and Mortar

As with the purchase or sale of a property, any decision to significantly alter, extend or build new buildings should start with the question: “How will this decision fit the mission of the congregation?” We are not in the business of property management – we own buildings when they provide the best means of enabling the Church to fulfil its life, worship, and mission.

This means that the parish should consider a wide range of options early in the process and be convinced that the proposed option is the best way to go. This requires you to ask questions such as the following:

• Should we look for a different location or site to use?
• Would it be better to sell the existing buildings as they are rather than altering them?
• Can we share facilities with other congregations either on our site or their site and reduce the capital expenditure?

In some ways, a major rebuilding process is like a purchase, so depending on the project, the advice in Section 2 of this handbook on what to consider may also be useful.

Small alterations can force major costs. The Building Code and Regulations, as well as obtaining Resource and Building Consents, have become more complex. Sometimes, relatively minor projects can grow to expensive major undertakings if full code compliance is required by the local authority (such as upgrading access, improving fire safety or earthquake strengthening). It pays to obtain advice from a professional who knows your local authority’s rules before going too far along the process.

The Design and Building process is based on the DBB Procurement type system, commonly known in the building industry as the Traditional System for building construction.

The DBB Procurement type system comprises of 3 Stages:

1. Design Stage (D)
2. Bid or Tender Stage (B)
3. Build Stage (B)

The Design Stage comes first, followed by the Bid Stage (or Tendering stage), and lastly the Build Stage, which is the construction stage of the buildings until completion.

The Design Stage is made up of the following 5 phases:

1. Project Establishment
2. Concept Design
3. Preliminary Design
4. Developed Design
5. Detailed Design

PHASE 1: Project Establishment

1. Appointment of a Project Manager person with other Major Project Consultants, where necessary by the Church, with the expedition of Fee Offer Proposals, followed by the Engagement agreements for consultants
2. Establishment of Design Brief to meet Church requirements, including discussions regarding time frame, brief budget estimates, stakeholders, procurement method, etc
3. Preparation of the Health & Safety plans for all disciplines and for the project.

PHASE 2: Concept Design

1. Exploration and production of sufficient Concept Drawings by Architect/Architectural Draughtsperson and Major Consultants engaged to test the Design Brief and leading into preliminary design for Resource Consent
2. Identification and development of potential site/land for the project
3. Preparation of the Concept Estimate by a Registered Quantity Surveyor (QS) and establish financial feasibility based on Concept drawings.

PHASE 3: Preliminary Design.

1. Refining the approved Concept drawings to produce Preliminary Drawings, including further discussions with the Church and Local Authority regarding regulatory approval requirements for Resource Consent and Building Consent.
2. Engaging Specialist Consultants, i.e. Town Planner, Traffic Engineer, etc., for their input in the preparation of the Resource Consent application to the Local Authority.
   1. Refining the Concept Estimate as required for the preparation of the Preliminary Estimate by a Registered QS and updating the Feasibility accordingly.
   2. Church to be able to approve the overall form, functionality and cost of the Project and move into Developed Design.

PHASE 4: Developed Design

1. Refine the Preliminary design such that the scope of all major elements, including structural elements, building services, materials and finishes and net/gross building areas, is clearly defined and coordinated.
2. High levels of input and coordination are required from all disciplines. Design documentation is produced to scale, with grids, principal levels, and dimensions shown, outline specifications finalised, and all performance criteria confirmed.
3. Apart from Traditional Tender Processes, other procurement types such as Early Contractor Involvement (ECI) or Novation must be agreed upon, as this may affect the Consultant design programme.
4. A Firm Estimate of Cost is prepared on an elemental basis. Church will be able to approve the aesthetics, functionality and cost of the Project to move into Detailed Design

PHASE 5: Detailed Design

1. Design must clearly define the quantity and quality of all building elements, materials and systems through drawings, specifications, schedules and performance requirements. Design should be comprehensively coordinated with other disciplines.
2. Documents should have critical use in Consenting and Procurement and should, with only minor amendment or clarification, achieve a Building Consent and should also be accompanied by Tender with General and Special Conditions and Contract documentation and used to Procure a Construction Contract.
3. Cost Plan Firm Estimate should be developed into a Tender Estimate, which is used to inform the Church of likely Tender prices and evaluate the tender prices submitted. If a Schedule of Quantities is required, it should be prepared based on the completed Detailed Design, General and Special Conditions of Contract documentation.

The Bid or Tender Stage is the Procurement of Contractors for the Building Construction:

1. Based on client approval and the detailed design outputs, the tender process work should now be undertaken for the selection of a builder/contractor to construct the building
2. The preparation of tender, special conditions and contract documentation is required. Separate procurement processes may be used to procure separate or specialist items for the building
3. When the tender closes, consultants are required to review the tender submissions for technical conformance and assess tender tags. The Quantity Surveyor will produce a Tender Evaluation Report, which gives an assessment of cost review, including a recommendation of a contractor for the construction works
4. Once a contractor is selected, contract documents are assembled into the contract for signing by the Church and the Contractor. All other relevant documents are to be completed as required
5. It is recommended to use NZS 3910:2023 Conditions of contract for building and civil engineering construction works. If NZS 3910:2023 is selected, the Church must appoint two consultants, namely the Contract Administrator and the Independent Certifier, in person. A Project Manager or a single Consultant can do both jobs, but only for minor or small construction projects
6. For large or major projects, the Project Manager can be employed as the Contract Administrator and a separate Consultant employed as the Independent Certifier who must act fairly, impartially, and independently, including the valuing of progress works, Payment Schedule, Variations, Extension of Time claims, etc
7. All other consultants, i.e. architect, structural engineer, QS, etc., cannot be employed as the Project Contractor Administrator or Independent Certifier while at the same time employed as a Consultant as well
8. Contract Works Insurance (CWI) is required for the project. Contact the Connexional Office to arrange the CWI
9. The Contractor is also required to have adequate Public Liability cover. The amount of CWI depends on the project's size and risk level. Generally, the CWI cover provider will request evidence of the Contractor’s liability cover and confirm that this meets the required level
10. The Contract for the project requires the certificate of insurance for the Contract Works (CAR) and the Contractors' Liability Cover. The final contract needs to be approved by the Church lawyer
11. Health and Safety (H&S) plans for all disciplines will be progressively developed, and the coordinated H&S Plan updated.

The Build Stage consists of 4 phases:

1. Construction Administration and Observation
2. Practical Completion
3. Defects Notification Period
4. Final Completion

PHASE 1: Construction, Administration and Observation.

1. The Construction work shall be executed in accordance with the Contract Documents between the Owner, who is the Board of Administration of the Methodist Church of New Zealand, and the Main Contractor, who is the Builder. Brick & Mortar Section 1: The Church and Building Law also provide more information in relation to the Building Act 2004, Building Code, Building Control, Building Consents, Resource Consent, etc.
2. The Administration work during the construction of the project relates to the management of the Construction work, which may include issuing directions or instructions, changing the Drawings or Specifications, organising and attending to Site Meetings, providing progress reports, dealing with and liaising with the council and regulatory requirements, etc.
3. The Observation work during the construction of the project relates to the monitoring of the construction with respect to the Design documents that form part of that Contract. The various design consultants undertake the activities during construction. This normally includes site visits and reviews of Contractor Design information to determine whether the construction materials and installations comply with the contract documents, specifications, and performance criteria.
4. The Contract Administrator/Project Manager will administer all work relating to the Administration of the Construction work.
5. The Contract Administrator will also oversee the Observation work (done by others) relating to the monitoring of the construction work done by the Design Consultants with respect to the Design.
6. The Independent Certifier who must act fairly, impartially, and independently, including the valuing of progress works, Payment Schedule, Variations, Extension of Time claims, issuing Completion Certificates, etc., including making decisions on all matters between the parties during the Administration period.

PHASE 2: Practical Completion.

1. The Practical Completion Certificate is issued at that stage in the execution of the work under the Contract when the Contract Works or any Separable Portion are complete except for “minor omissions and minor defects”:
   1. Which, in the opinion of the Independent Certifier, the Contractor has reasonable grounds for not promptly correcting
   2. Which do not prevent the Contract Works or Separable Portion from being used for their intended purpose; and
   3. Rectification of which will not prejudice the convenient use of the Contract Works or any Separable Portion
2. Documents typically required for Practical Completion
   1. Producer statements
   2. Warranties & Guarantees
   3. As-built drawings
   4. Operation & Maintenance manuals
   5. Certificates (i.e. Electrical certificate for all equipment hardwired)
   6. Test results
   7. Code of Compliance (Optional)
   8. Certificate of Public Use
   9. Others – as determined by the Independent Certifier
3. Work milestones after issuing of the Practical Completion Certificate:
   1. The Owner/Church takes control of the site, including the buildings
   2. Insurances become the Owner/Church’s responsibility
   3. Contractor’s bond and insurance can be released
   4. Liability for liquidated damages ends
   5. Payment Schedule is made with part of the retention monies is being released, usually 50% under NZS3910
   6. The Defects Notification Period starts.

PHASE 3: Defects Notification Period (DNP), also known as Maintenance Period.

1. The Defects Notification Period starts on the date of the Practical Completion Certificate
2. Contractor shall remedy defective workmanship and materials before DNP ends
3. Contract Administrator (CA) gives notice of 5 working days to the Contractor to fix Defects
4. CA can instruct others to fix Defective work if the Contractor fails to do it within the time
5. The Defects Notification Period shall be 3 months unless otherwise mentioned in the Special Condition of Contract
6. A 12-month DNP is typically used when Service Installations are included
7. All defective work (snag list) must be completed satisfactorily before the Independent Certifier issues the Final Completion Certificate.

PHASE 4: Final Completion

1. The Independent Certifier shall consider recommendations from the CA and Adviser, then issue the Final Completion Certificate to Owner/Church, CA and Contractor when in respect of the Contract Works or Separable Portion:
   1. The Defects Notification Period has expired; and
   2. The Contractor has remedied all minor omissions and defects and all defects notified by the CA
2. Documents typically required for Final Completion
   1. Producer statements as set out in Schedule 6
   2. Other forms as noted in Specific Conditions
   3. All completion records
   4. Others – as determined by the Independent Certifier
3. Work milestones after issuing of the Final Completion Certificate:
   1. The Final Accounts with Contractor have been agreed, and the Independent Certifier has issued an outstanding Payment Schedule for the Final Payment.
   2. Final Payment Schedule made with the balance of retention monies being released, usually 50% under NZS3910.
   3. In spite of the issue of the Final Completion Certificate, the Contractor shall remain liable for the fulfilment of any obligation of the Contractor under the Contract, which then remains unperformed or not properly performed.
   4. The Contract Works Insurance Declaration then needs to be signed to confirm the work is complete.
   5. Please arrange the building insurance cover with the Connexional Office. New buildings and significant increases in value will require an insurance valuation.

Significant changes to a building, including renovations over $50,000 and/or requiring a resource or building consent, require approval from the Parish Council, the congregation, Synod and MCPC.

Your application needs to include plans/drawings (where appropriate), cost estimates/quotes, the Parish Strategy, budget, Parish Council and Synod approvals, accounts for the last 12 months, and information on how the project will be funded.

If the building project is major, you should discuss the project with your Synod Property Advisory Committee (SPAC) from the beginning of the process. Your SPAC Property Convenor will be able to assist and guide you through the approval process and advise on the local government requirements, drafting plans and professionals required for the project.

However, if Building Works, including Renovations/Alterations, require Council Consents (Resource Consent or Building Consent), then the engagement of a Project Manager is required to administer and oversee the Construction work.

Once you have Parish approval to proceed with the work, send your completed application, along with the supporting documents, to your SPAC. Find out when your SPAC meets and their close off date.

Applications will require:

1. MCPC Application – please include the details of what you want MCPC to approve
2. Parish Strategy
3. Parish accounts
4. Quotes
5. Budget Estimate Cost
6. Plans
7. Site Plans
8. Asbestos Management Report
9. Asbestos Management Survey
10. Parish Council approval

Send the application, including all the above documents to SPAC, who will ensure the application is complete and send it to MCPC with their approval. Therefore, you will need to find out when your SPAC is meeting. This needs to happen for each stage of the process.

Usually, MCPC meet on the 4^th Thursday of the month. The close off for the meeting is the Monday 10 days before the meeting.

The Church requires all major building projects to go through the Three Stage Approval Process. Especially for projects requiring resource and/or building consent the use of the Three Stage Approval Process is paramount.

First Stage Approval is the approval of Concept Plans and to Lodge for Resource Consent (if required)

If the Concept plans and details are insufficient to provide the information requested by Council for Resource Consent purposes, then Preliminary plans should be expedited to provide the additional details required. Providing Preliminary plans and details to the Council will also help clarify the indicative Preliminary estimate cost budgets.

The concept and preliminary plans, including preliminary cost estimates, must be approved at the Congregation/Parish Council level before being forwarded to the Synod Property Advisory Committee (SPAC). You will need to find out when SPAC meets and their close off date.

SPAC will then forward the application (with SPAC approval) to MCPC for final approval.

MCPC will ultimately need to approve the Synod application for the First Stage Approval, which gives permission to lodge for Resource Consent (if required) and Concept Plans.

Second Stage Approval is the approval to Lodge for Building Consent and Tender Process

Upon receiving the First Stage Approval from MCPC, the Synod can proceed with procuring the Developed Design and Detail Design plans, including compiling a Schedule of Quantities for the Tender Estimate.

At the same time, the Project Manager can proceed with the Tender Stage procurement to determine the likely successful Contractor for the project.

Your SPAC will repeat the same process as First Stage Approval: submitting the application and obtaining MCPC's final approval for Second Stage Approval, in order for Synod to lodge for Building Consent.

Third Stage Approval is the approval to Award the Building Contract

Upon receiving the Second Stage Approval from MCPC, the Project Manager can then proceed to lodge the Building Consent application with Council as required.

The Tender Process will be in its final stages in selecting the successful Contractor for the Project.

The SPAC will repeat the same process as First and Second Stage Approvals in terms of submitting the application, and for MCPC to give final approval for Third Stage, in order for the Project Manager to award a building contract to the successful Contractor for the project

Stage 1 - Approval to Lodge Resource Consent (if required).

To seek approval for any Church building project, approval from the Parish Council, Parish Leaders’ meeting, and/or the Congregation is required before the application is forwarded to the SPAC. The SPAC will then forward the submission, with their approval to MCPC for final approval.

Concept plans and Preliminary plans are required to obtain Resource Consent, and the building process must comply with the Church approval process listed above to obtain Stage 1 approval and move to the next stage.

This is to minimise and safeguard the Parish from incurring unnecessary and often significant expense on consultancy costs without guaranteeing that the project will go ahead.

The Concept Stage and Preliminary Stage are the best design opportunities to make plan changes to meet the revised budget estimate with the least cost impact on the Parish.

It is also important for the Parish to provide its current financial report, including the project's funding strategy and any lending and grant applications.

Parish should also show their intended fundraising for the project. The parish will need to get approval from the Church when submitting grant applications.

As a general guide, Stage 1 Approval will require the following items when submitting an application:

• An outline of the parish strategy for mission and growth opportunities
• Alternatives that have been considered in making the recommendations
• General design proposal and design philosophy
• Concept Plans and Preliminary Plans
• Concept Estimate or Preliminary estimates
• Feasibility costing, if available
• Project strategy
• Parish strategy
• Current accounts and assets, together with income and expenditure history
• Budget/Funding Strategy
• Details of the proposed consultant team, including the Project Manager
• Parish Council approval
• SPAC approval
• Specific design details
• Proposed Quality Assurance plan covering material standards, supervision and certification
• Details of local planning consent requirements

Stage 2 - Approval to Lodge Building Consent and Seek Tenders

Upon receiving approval for Stage 1, approval for the Developed Design and Detail Design should be sought once the design has been finalised, reasonably firm costings have been received, and the details of how the project is to be financed have been determined, but before any commitment to proceed has been made.

This will enable the construction contractors to assess the full scope of works for the project, as required for their costing and tender submission.

As a general guide, Stage 2 Approval will require the following items when submitting an application to MCPC:

• Parish Strategy
• Detail Design Drawings.
• Current accounts and assets, together with income and expenditure history
• Budget/Funding Strategy
• Parish Council approval
• SPAC approval
• QS revised Tender estimate
• QS Schedule of Quantities
• Proposed project execution strategy for tenders and construction
• Project cost and cost control proposals
• Project financing, including final approvals for any borrowing
• Project management and time scheduling control plans.

Stage 3 - Approval to Award Contract

Final approval from the Parish Council, congregation, SPAC and MCPC is required for the project to proceed.

Once the Building Consent is approved, the tender process has been carried out, and the preferred contractor has been selected in a robust process, approval is required from MCPC to award the contract.

As a general guide, Stage 3 Approval will require the following items when submitting an application to MCPC:

• Parish Strategy
• Detailed Design Drawings
• QS Tender evaluation report costings that align with the selected tender
• Tender quotations including scope of works, etc
• Current accounts and assets, together with income and expenditure history
• Budget/Funding
• Parish Council approval
• SPAC approval

In addition to the information required for the approval to award the contract, this will generally require:

• Specific design details
• Details of local planning consent requirements
• Project cost and cost control proposals
• Project financing, including final approvals for any borrowing
• Project management and time scheduling control plans.

Once you have received MCPC approval to award the contract, ensure you contact the Insurance and Property Team at the Connexional Office on 03 3666 049 to arrange Contract Works Insurance.

The Contract for the project requires the certificate of insurance for the Contract Works (CAR) and the Contractor's Liability Cover. The final contract needs to be approved by the Church lawyer.

Most projects require a significant time commitment from the congregation. It is best if the congregation appoints a dedicated team (a ‘works committee’) to oversee the process from the start and ensure its successful completion. For significant projects over $100,000, MCPC expects systems to be established to manage and control the project, with regular reporting that leaves no room for surprises as work advances.

Before signing a major contract, such as for building work, all approvals must be in place, and the contract must be checked by BOA’s lawyer.

This is to ensure that, should a contractual dispute later arise, the parish’s interests are not jeopardised for want of legal standing. A parish is not a legal entity and does not have sufficient legal standing to enforce a contract in its name should it become the subject of a legal dispute. BOA is a legal entity and can take action to enforce a contract.

The contract documents shall be reviewed by the BOA lawyer to ensure they are in order for signing and that both the parish and BOA are adequately protected.

Because BOA acts for many parishes, BOA’s lawyer will need to include a clause limiting their liability to your parish property, which should read something like:

“The liability of The Board of Administration of the Methodist Church of New Zealand under this contract shall be limited to the property set out in the schedule attached, and shall not constitute a debt payable by The Board of Administration of the Methodist Church of New Zealand and their successors in office out of any other fund or property.”

If, at any time, either before or after you commence your project, the approved cost is likely to increase by 15% or more, or major changes to the scope of the work are required, please advise Synod and MCPC immediately, as this may negate the original approval and a further approval may be needed.

For any major project, it is important that you find a professionally qualified principal designer and agree on the extent of the work and that you take advice from other members of the design and construction team. The team will generally consist of the architect and civil and structural engineers. Other engineers (mechanical, electrical and fire services) may need to be appointed by the principal designer depending on the size of the project.

In addition to selecting the designers, we strongly recommend that any major project employ:

• A Project Manager who will report to you on quality assurance certification, the impact of project scheduling and any cost variations.
• A Quantity Surveyor to provide a cost plan, schedule the job for tendering, advise on the prices submitted and handle cost variation approvals. They should be asked to regularly report on the anticipated final cost and to advise on approving progress payments and other claims as they arise.
• An independent Health and Safety Consultant to regularly review site Health and Safety performance and standards.

Normally, for a large project, this is best achieved by tendering with preselected contractors considered capable of doing the work. This ensures you are getting competitive prices for the work. Your professional advisors should be able to suggest suitable tenderers.

There are other ways to have the work designed and constructed outside the competitive tender process. If you use these, then MCPC will want to be assured by Synod’s Property and Finance Committee that the congregation is getting value for their money, that independent advice is used to ensure quality standards are achieved and that cost plans and time schedules will be established and independently monitored. If using a design-build arrangement, it is particularly important that the parish receives the Producer Statement, including the final construction review.

It is important to ensure that the contractors pricing the work provide a work schedule showing target finish dates. The time schedule should become part of the contractual documentation, with regular reports provided on the progress being made against the agreed schedule.

Ensure you have Contract Works Insurance in place. Please contact the Property and Insurance Manager at the Connexional Office 03 3666 049 to arrange this.

Check that your professionals, particularly your builder, have adequate insurance, including professional liability insurance. Make sure you understand that when the project is completed (practical completion), you arrange your own insurance ready to replace the Contract Works Insurance immediately. It is also important to ensure that your contractor is responsible for compliance with Health and Safety regulations and that all members of your congregation comply with these requirements when accessing the site.

All major construction projects, including rebuilds, will require a project manager, also known as a contract administrator, from conception.

If your project has triggered a building consent, once the work is completed and the Code of Compliance is issued, you will be required to have a Building Warrant of Fitness (Building WOF). A building warrant of fitness shows that the specified systems in your building are maintained, inspected and working effectively.

What is a building warrant of fitness (BWoF)?

A building warrant of fitness (BWoF) is an annual statement that the inspection, maintenance, and reporting procedures for the specified systems (such as sprinkler and fire alarm systems) listed on the compliance schedule have been fully complied with during the previous 12 months.

Building owner's responsibilities

As a building owner, you need to display your building warrant of fitness so that people using your building know that all specified building systems are functional and operating effectively, without risk to their health and safety.

As a building owner, you have to:

Engage an independent qualified person (IQP) to undertake the inspection, maintenance, and reporting procedures as required by the compliance schedule.

On each anniversary, supply the Council with a building warrant of fitness stating that the procedures have been complied with during the previous 12 months, and attach the certificates of compliance from the independent qualified person.

Display a copy of the building warrant of fitness within the public area of the building.

You may get a fine if you don't display a building warrant of fitness or if it has expired.

More detailed guidance on your responsibilities relating to managing your building warrant of fitness for buildings with specified systems (external link) is available on the Ministry of Business Innovation and Employment website. https://www.building.govt.nz/building-officials/guides-for-building-officials/building-warrants-of-fitness/

• Congregation’s mission plan is prepared, including what property resources are needed to support this mission
• Determine the options to be considered and the criteria that they will be assessed against to best reflect the mission objectives of the parish
• Agreement to proceed with the project requires the approval of:
  • Parish Council or Church Leaders
  • Congregation
  • The congregation should appoint a ‘works committee’ unless the project is very small
  • Synod
  • MCPC (Application form, Appendix 1 at the rear of this handbook)
• Application to MCPC will require:
  • Strategic Plan
  • Sketch Plans
  • Site Plan
  • Accounts – for the last 12 months
  • Approvals from Synod and Parish Council
  • Asbestos Management Plan (if appropriate)
  • All applications are to be forwarded to your Synod for their approval. The Synod will check all the required documentation is included in your application and forward it with Synod approval to the Connexional Office for MCPC approval
• If you need to borrow money, the Parish Council, congregation, Synod and MCPC all need to give formal approval for this. The details for this are provided in Section 13 of this handbook.

• Ensure contracts are approved by the BOA’s lawyer and provide protection to your congregation through insurance and adequate handling of Health and Safety requirements
• Check that Contract Works Insurance is in place with COI in the contract
• Check your Contractor’s Liability Cover is up to date and adequate for the project
• Check your GST situation and ensure you are able to claim back the GST charged by consultants, contractors and other providers
• Set up the reporting requirements to ensure that your committee will get timely advice on the progress of the project and adequate assurance about the quality of the work
• Before you make your final payment and take possession of the building, check that:
  • your professionals have signed off that the work is complete and to standard
  • The Producer Statement, Code of Compliance and Resource Consent are finalised and have been released
  • You have adequate insurance