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

• Rising to the Challenge of Climate Disclosure

• New Preliminary Energy Efficiency changes proposed in the Building Act

• 3910 Review – Recommended Special Conditions
   

Rising to the Challenge of Climate Disclosure

Investors, stakeholders, and regulators are increasingly looking to understand how organisations are addressing climate related risk.

Many governments are beginning to mandate climate related financial disclosure in line with Task Force on Climate-Related Financial Disclosures (TCFD) recommendations.
New Zealand was the first country to introduce legislation making climate related disclosures mandatory for some organisations. From the end of 2023, reporting will be required against standards issued by the External Reporting Board (XRB) in line with TCFD recommendations.

Organisations must understand this changing reporting environment and the impacts on governance, strategy, risk management, metrics, and targets.
Aon’s whitepaper explores climate disclosure requirements across the Asia Pacific region and shares insights and guidance on developing TCFD-compliant disclosures. Read more here.

 

New Preliminary Energy Efficiency changes proposed to the Building Act

The New Zealand Government are currently contemplating whether to implement changes to the Building Act to implement mandatory energy efficiency standards for all new buildings. These proposed changes were released by the Ministry of Environment in the middle of 2022. Further detail can be found at the Building Performance website here.

Certain new projects undertaken for the construction or demolition of a structure would require a Waste Minimisation Plan to be implemented prior to commencement. This plan would look to create a requirement around specific actions and activities that are currently being undertaken by contractors during the build and construction phase. This amendment has come about as there has been more discussion around the amount of construction waste that is going to landfills around New Zealand with some sources citing that up to 50% of landfill waste is due to the construction waste around the country. Due to this, MBIE is looking to tackle and incentivise contractors and those in the construction sector to look at ways in which they could minimise or reduce the amount of waste that is being produced – through thoughtful design, incentivised recycling, reusing materials where possible, and waste diversion schemes.

If this change were to be implemented, contractors would need to consider the need to potentially increase their Removal of Debris and Demolition reinstatement limits under contracts/in turn contract works insurance to compensate for any increased costs which may be incurred due to the requirements under a Waste Minimisation Plan.
 

3910 Review Committee – Recommended Special Conditions

We can confirm that the changes advised to Special Conditions 8.5 and 8.8 regarding Public Liability are acceptable and should be adopted in contracts going forward. here is the link.
You will see we have added these changes into our (Aon) Summary of Recommended Amendments to NZS3910:2013.

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.

Michael Twyman | National Construction Manager

Mike’s true passions are American classic cars and golf.

He houses his cars on a lifestyle block where he enjoys hanging out with his son Seb, four dogs and other farm animals. Some call this a ‘life sentence’ block but Mike is an active relaxer, and DIY farming is something he enjoys.

Mike prides himself on his market relationships, enjoys new challenges, thinking outside of the box and most importantly, goes the extra mile for his clients.
Mike is the current National Manager of the dedicated Construction team at Aon.

He has 18+ years of liability insurance experience and during that time he has specialised in the design and placement of professional indemnity and companion liability insurance accompanied by professional advice.

Mike brings a wealth of knowledge and experience in conjunction with access to international insurance markets through global relationships, having worked in both the New Zealand and London insurance markets.

Michelle de Lange | Account Executive
 

Michelle is an avid hiker and gym goer. She spends her downtime exploring New Zealand trails with her husband Pierre.

She plays touch for the Aon team every Monday and even though she has only been playing for 2 years, she is a star of the team!

Michelle has been part of Aon for 5+ years across Hong Kong and New Zealand and has been with the Aon Construction team for 12 months.

She has experience across corporate property, casualty and motor placements and has spent significant time working with SME construction clients.

Michelle brings a dedicated and positive approach to her clients and prides herself in providing efficient and tailored advice.

She looks forward to working with Aon’s valued clients throughout 2023.

Say hello to a construction specialist today, to find out about construction insurance and risk management.