Fencing Contractors NZ says undercutting long-established professionals is not new. Photo / Getty Images
Fencing Contractors NZ says undercutting long-established professionals is not new. Photo / Getty Images
Low pay rates for subtrades, such as painting and decorating and fencing, are opening the door for "cowboys" willing to take up the work at a cut-price rate.
That's the view of Bay City Fencing owner Graeme Ward who says some building firms in the Bay of Plenty are screwingthem ''down to the measliest dollar'' on jobs.
He is not alone. Fencing Contractors NZ said "cowboys" who were starting up and "undercutting guys who had been established for a long time was not new" and happened across the country.
The New Zealand Painters Association said the Bay of Plenty area had a reputation for being "one of the lowest-paid areas in our sector for a number of years".
The situation had been amplified by the building boom and skilled labour shortage that was sweeping the region.
Meanwhile, subcontractors spoken to by NZME believe lack of regulation has kept down rates in sectors like painting and fencing, with some rates unchanged in 20 years, they said.
New Zealand Construction Industry Council chairman Graham Burke said it knew from experience a cheap price didn't necessarily mean value for money.
The council covers a broad range of construction from designers to building inspectors, builders and architects.
"It's the race to the bottom that has plagued the industry forever really. As long as people are going to be looking for a cheap price there is always going to be someone who will give it. The main thing is for good businesses to resist the urge to compete on that level."
Fencing company owner Ward said over the years his company had taken on work to fix mistakes made by cowboys but he had drawn a line in the sand.
"We won't do it anymore because, in my view, they can go back to the people that did it."
Ward also said builders "tended to screw the subcontractors down to the measliest dollar".
"So the good ones ... over time they just say stuff it, and they walk away. Then they [builders] end up with poor quality builds because of hiring somebody that's sub-trade."
While there were good fencing companies about "you just have to shake your head at some of them".
"The problem in the fencing game is you get a lot of not fully qualified people looking for work. It's an easy start-up."
Whether they continued and retained their business was another story, he said.
"You'll always get people that come in and they fall away and they disappear. It depends on the market and if it's buoyant or not."
Some painting rates have not shifted in 20 years. Photo / Getty Images
Regency Painters & Decorators owner Darran Richardson said anyone could put up a sign and say they were a painter.
In his opinion, there were "cowboys out there".
"They don't charge as much ... so we end up working for a lot cheaper."
Bay of Plenty Painters owner Josh Kelsall said some rates had not shifted in 20 years and getting paid per square metre could actually work against you on smaller houses that could take the same amount of time.
He said 20 years ago he was getting paid $50 a square metre and there were still housing companies now paying that rate.
That had created a catch-22 scenario and while it opened up opportunities for people to go out on their own it meant "you'll always have young guys willing to give it a crack who will work for that money".
Kelsall said he now opted to charge at an hourly rate and tended to do high-end jobs.
"People don't mind paying for a good job. You have just got to do the best job you can."
Ministry for Business, Innovation and Employment building policy manager Amy Moorhead said painting, decorating and fence building was not covered by existing occupational regulation - because there was little risk to public safety.
The lack of regulation for low-risk building work enabled anyone to undertake DIY jobs themselves without requiring a skilled tradesperson, she said.
Fencing Contractors NZ president Phil Cornelius said industry regulations were lacking although the association had put a focus on certification and it had 34 certified members.
He said technically nothing could be done about the cowboys.
"Apart from striving to do better than the ones doing a rough job that is about all they can do. That is reality, unfortunately."
Cornelius said it was important customers asked for references and sighted previous work before getting a fencer.
Master Painters New Zealand Association Inc chief executive Brian Miller said in his view while maximising returns for those running housing developments was not an issue, it could be a trap.
"In some trades, especially painting, what is seen as an opportunity by many is a trap that leads to poor returns and long hours, or shortcuts being taken to the detriment of the end purchaser and probably does not align with the required NZ Standards."
Good builders recognise the need to have skilled trades in their entire team, Miller said, and painting provided the visual finish to most others' work, "scrimping on this often leads to disappointment".
Miller said the association members were qualified trade painters with proven track records.
Ministry for Business, Innovation and Employment consumer protection national manager Mark Hollingsworth said the Disputes Tribunal was an inexpensive way to resolve issues with lower value work.
When building work exceeded $30,000, consumers should consult their contracts for guidance on what dispute resolution process to follow, and what channel should be attempted first, he said.
If there was no contract or it was unclear consumers could consult the default clauses in the Building Regulations 2014. These covered several aspects of a building contract, including building consents, variations, payments, subcontractors, dispute resolution, and notices.
