Lower your risk!

Q: Builders today face a number of factors that could negatively affect their business. How do you manage your risk?

Firm: Just Build It NZ
Principal: Geoff McNee
Location: Queenstown
Staff: 15 staff (2 apprentices)

I believe that managing risk is two-fold. First of all, you need to have comprehensive insurance in case anything goes wrong. Second, you need to promote a work culture that keeps your staff safe and healthy, because without staff, you can’t complete the work.I have comprehensive insurance, which includes public liability insurance, contract works insurance and LBP liability insurance, which is organised for me through a broker.I’ve always been of the belief that insurance is a necessary investment, especially with four or five vehicles going between sites. It’s one of those things where you’re never sure if you’re going to need it, but the alternative – more than likely serious financial trouble – isn’t appealing at all.Managing risk is also about making sure your staff don’t take any unnecessary risks. Our policy is ‘safety first’ and my foremen are responsible for enforcing that, which they do very well. My staff are my most important asset and any risk they take is a risk to the business.

Firm: Jason Williams Builders Limited
Principal: Jason Williams
Location: New Plymouth
Staff: 2 staff, use contractors as well

It seems as though we have more responsibility than ever before, but I think the key to managing that risk is ensuring we keep up to date with the building code, so that we know we’re carrying out the work properly.

“Insurance is one of those things – the minute you decide not to get it, something will go wrong!

It’s also extremely important to have the proper insurance. I have public liability insurance, to protect me from the cost of accidentally damaging other people’s property, and contracts work insurance for fire, theft, vandalism or any damage that occurs that’s out of my control. Luckily, in all my years of building, I’ve never had to use it, but that doesn’t mean I don’t need it. If something does go wrong, the last thing I want to be doing is struggling to find the money to cover the damage. Insurance is one of those things – the minute you decide not to get it, something will go wrong!

Firm: Lester Building Group
Principal: Gary Lester
Location: Porirua
Staff: 4 staff (1 apprentice)

I would say communication with my team is the first step to mitigating risk all round. Before we start a new job, my crew and I always have a toolbox meeting to discuss any risks – whether they’re safety or quality related – associated with that job.We also have weekly meetings to re-evaluate those risks and see if anything new has come up. I find it’s important to discuss where you have to take care and why.But there’s no way to guarantee that nothing goes wrong, and that’s why insurance is essential. I’ve found that if you let your insurance company know the steps you’re taking to mitigate risks, sometimes they’ll give you a better rate.I have public liability insurance and, when necessary, contract works insurance. Because we do a lot of alterations, the contract works insurance is normally dealt with by the homeowners.