Issue 44 - August 2015

Red flags

11 Aug 2015, Builders business

Prior to quoting a job, what ‘red flags’ do you look out for when speaking with prospective clients?

Firm: Azco Builders Limited
Principal: Aaron Crook
Location: Thames
Staff: 4

There’s a few red flags that I look out for when I’m speaking to a client for the first time. Two key ones are if they don’t have any plans or a clear idea about what they want, or have more than five builders giving them quotes.

Both indicate that either they’re not that serious about starting work, or are looking for the cheapest price, which isn’t me; I believe in doing a quality job with quality materials.

Another one is when you’re coming into a job that’s already started. If they’ve got rid of another contractor, it normally means there’s been some sort of dispute. I try to find out who the builder was and call them up to get their story.

Gut feel is another big one; if it doesn’t feel right, I just don’t go there. My old boss told me that and it has stood me in good stead. In my experience, it’s not worth taking on jobs you don’t feel comfortable with; they can end up costing you and the client a lot of money.

 

Firm: Court Construction
Principal: Cameron Court
Location: North Shore
Staff: 14

I look at the site first. Shared driveways can make access tricky, plus there needs to be enough parking for all my guys and the contractors. When you’re building or doing excavations right on the boundary line, which is pretty common in Auckland, it can be tough.

Location is important as well; we’re based on the North Shore and I don’t like going too far away. But otherwise, we have a saying that ‘an obstacle can be turned into a stepping-stone’.

An example would be a job we did last year. It was a 26-week project finishing just before Christmas. It was a tight site and we hit volcanic rock during some excavations. It was pretty tough, but we got in two diggers with diamond-tipped augers and dug in.

Then we drew a new plan that involved ten weekends of work to get them in their home for Christmas. We do specialise in those sorts of jobs that no one else wants, because there’s less competition for work. I can’t think of any jobs I’ve turned down because of a ‘red flag’.

Also, if the detail in an architect or draughtsman’s drawings is lacking, it often coincides with the client having unrealistic price expectations. That can be a tough conversation to have, but it pays to have it early.

We see red flags as an opportunity. If opportunity doesn’t knock, build a door!

 

Firm: Franklin Renovations
Principal: Lane van den Brink
Location: Franklin
Staff: 13

I think you have to feel the client out to see if they’re genuine or not. Checking the detailing on drawings is important as well. A good indicator is, if they come to us with plans, it shows that they’re organised and aren’t just shopping on price.

I also find if the client is very demanding early on, it’s a potential red flag, because they’re likely to give you issues throughout the whole job.

Making sure they’re willing to work with you is important, because you’re coming into their space. They need to be able step back and let us work. We also induct them onto the site, as part of our health and safety policy. We’re going pretty overboard at the moment, but it ensures everyone is safe.

Getting variations signed off in writing is also key. I think just being up front from the start of the job is the best way to avoid any problems; telling them when you expect payments to be made and updating them on what you’re doing helps things go smoothly.

 

Now have your say…

How do you manage council inspections to best avoid downtime?

Answer this question to enter our quarterly prize draw:

Email your answer with your full name, contact phone number, company name, number of full-time staff and the city or town in which you’re based to editor@pmundersconstruction.co.nz. All responses must be submitted by 25 August. The answers to this question will be published in Under Construction October.


Register to earn LBP Points Sign in

Leave a Reply