Posted on

Unsafe quad bike killed farmhand

A quad bike rollover, which cost a Tararua farmhand his life, could have been avoided if the farm manager had kept the bike in good working order, WorkSafe New Zealand says.

Worn brakes, uneven tyre pressure, and poor suspension were among the defects found on the bike that flipped at low speed and killed 31-year-old Ethen Payne at an Eketahuna dairy farm in November 2022.

The bike was purchased second-hand and had no crush protection device installed. The farm manager and bike owner, Dane Hemphill, has now been sentenced for health and safety failures uncovered by a WorkSafe investigation. A victim impact statement read in court said Mr Payne’s mother has since died of a broken heart.

“This tragedy should be the lightning rod the agriculture sector needs to up its game on quad bike safety,” says WorkSafe’s central regional manager, Nigel Formosa.

“First and foremost, WorkSafe strongly recommends installing a crush protection device on the back of a quad bike.”

Pre-start checks are important, primarily to check tyre pressure and brake function before setting off.

Regular servicing in line with the manufacturer’s recommendation is also a must. This may include oil changes and filter replacements. A checklist can be handy to document the frequency of servicing, what was looked at, and any fixes undertaken.

Any issues identified during pre start checks or servicing should be addressed promptly to avoid further problems or potential hazards.

“We know life is busy for farmers, but there’s no excuse for letting your quad bike maintenance slide – especially when the consequences can be catastrophic. Ideally maintenance checks are done by a mechanic. If you are too busy to take your quad bikes in for a service, arrange for a mobile mechanic to come out to you. The cost is nothing compared to having a preventable death on your conscience,” says Nigel Formosa.

WorkSafe Media Release, 1 May 2025

Published in WIRED issue 77/June 2025 by Fencing Contractors Association NZ

You may also like: Health and safety pre-start for plant and machinery

Read WIRED online
Follow us on Facebook

© Fencing Contractors Association NZ (FCANZ)

Posted on

Using quad bikes and SxS in fencing: risks and controls in rural New Zealand

In rural New Zealand, quad bikes and side-by-sides (SxS) are invaluable tools for fencing work. They offer mobility and efficiency across challenging terrains. However, their use comes with significant risks that need to be managed to ensure safety.

Setting the scene

Imagine a typical day on a New Zealand farm. You’re tasked with repairing and installing fences across hilly, uneven terrain. The quad bike or SxS is loaded with fencing gear, including posts, wire, and tools. The landscape is rugged, with steep slopes, loose gravel, and hidden obstacles.

Risks involved

Terrain hazards: The uneven and often slippery terrain can cause vehicles to tip over or lose control. Steep slopes and hidden obstacles like rocks or holes increase the risk of accidents. Complete a risk assessment on the day.

Load management: Carrying heavy or unbalanced loads can affect the stability of the vehicle, making it more prone to tipping. Can you move material a different way or with a different vehicle?

Weather conditions: Adverse weather, such as rain or fog, can reduce visibility and make the ground more treacherous, slippery, with hard to see hazards. Rushing in wet conditions can lead to incidents occurring.

Operator fatigue: Long hours of operation can lead to fatigue, reducing the operator’s reaction time and increasing the likelihood of mistakes.

Controls and safety measures

Training and competency: Ensure all operators are trained and competent in handling quad bikes and SxS. This includes understanding the vehicle’s limits and how to navigate difficult terrain. Look for reputable companies that offer specialised training programs for bike use.

Protective gear: Always wear appropriate protective gear, including helmets, gloves, and sturdy footwear. Helmets are crucial in preventing head injuries. In New Zealand, approved motorbike helmets must comply with either the New Zealand Standard NZS 5430 or one of several recognised international standards: UN/ECE Regulation No. 22, Australian Standard AS 1698, Snell Memorial Foundation, or Federal Motor Vehicle Safety Standard No. 218. Look for helmets with certifications from DOT, ECE, or SNELL.

Vehicle maintenance: Regularly check and maintain vehicles to ensure they are in good working condition. This includes checking tyre pressure, brakes, and throttle. Basic maintenance tasks like oil changes are essential.

“ We know life is busy for farmers, but there’s no excuse for letting your quad bike maintenance slide – especially when the consequences can be catastrophic. Ideally maintenance checks are done by a mechanic”

Load securing: Properly secure all loads to prevent shifting during transit. Use appropriate straps and ensure the load is balanced.

Route planning: Plan routes in advance, avoiding the most hazardous areas when possible. Walk new routes to identify and mitigate potential hazards.

Weather monitoring: Keep an eye on weather forecasts and avoid operating in extreme conditions. If caught in bad weather, find a safe place to wait it out.

Rest breaks: Schedule regular breaks to prevent fatigue. Ensure operators are well-rested before starting their tasks.

Stop safely: Ensure that the vehicle is safely stopped, and the brakes are fully engaged before getting off.

Seek assistance: Don’t be afraid to seek assistance when you need to – neighbouring farmers are usually more than willing to lend a hand.

Care and maintenance

Regular inspections: Conduct regular inspections of your quad bike or SxS. Check for any signs of wear and tear, and address issues promptly to prevent breakdowns.

Oil changes: Keep up with regular oil changes as specified in the owner’s manual. Using the correct oil and filter is crucial for engine longevity.

Fuel management: Use fuel stabilisers if the vehicle will be stored for an extended period. This prevents fuel from breaking down and clogging the fuel system.

Battery care: Ensure the battery is charged and in good condition. Regularly check the terminals for corrosion and clean them as needed.

Common maintenance mistakes

Neglecting regular oil changes: Some operators believe oil changes are only necessary once a year. However, quad bikes and SxS often operate in harsh conditions, requiring more frequent oil changes.

Ignoring air filter maintenance: The air filter can quickly become clogged, especially in dusty environments. Failing to clean or replace it regularly can lead to engine damage.

Overlooking tyre pressure: Incorrect tyre pressure can affect handling and increase the risk of accidents. Both over­ inflated and under-inflated tyres can lead to uneven wear and reduced traction.

Skipping battery maintenance: Neglecting the battery can result in starting issues. Regularly check the battery’s connections and use a maintainer during periods of inactivity.

Infrequent greasing: Failing to grease pivot points and bearings can lead to premature wear and tear. Regular greasing is essential for smooth operation.

Effects of weights carried

Stability and control: Carrying heavy or unbalanced loads can significantly affect the stability and control of quad bikes and SxS. Extra weight can alter the centre of gravity, making the vehicle more prone to tipping, especially on slopes.

Steering and braking: Additional weight can impact steering and braking performance. Heavier loads require more force to stop and can make steering less responsive.

Load limits: Always adhere to the manufacturer’s recommended load limits. Overloading can strain the vehicle’s suspension and brakes, leading to mechanical failures.

Securing loads: Ensure that all loads are securely fastened and evenly distributed. Unsecured or uneven loads can shift during transit, further compromising stability.

Fatality statistics in New Zealand

The use of quad bikes and SxS in rural New Zealand has unfortunately led to numerous fatalities.

  • From January 2006 to April 2023, there were 69 confirmed workplace fatalities involving quad bikes.
  • In 2024 alone, there were several quad bike and SxS incidents, including multiple fatalities due to quad bike and SxS rollovers.
  • The majority of these incidents occurred in the agriculture sector, highlighting the risks associated with using these vehicles in rural environments.

Safety measures to reduce fatalities

Crush Protection Devices (CPDs): Installing CPDs on quad bikes can prevent serious injuries or fatalities in the event of a rollover. These devices help keep the vehicle from crushing the operator.

Regular training: Continuous training ensures that operators remain aware of the latest safety practices and are competent in handling their vehicles. Refresher courses can help reinforce safe driving habits.

Risk assessments: Conduct thorough risk assessments before using quad bikes or SxS. Evaluate the terrain, weather conditions, and the nature of the tasks to identify potential hazards.

Speed control: Encourage operators to drive at safe speeds, especially on uneven or unfamiliar terrain. Excessive speed is a common factor in many quad bike accidents.

Passenger restrictions: Avoid carrying passengers on quad bikes unless the vehicle is specifically designed for it. Extra weight can affect the balance and control of the vehicle.

Emergency preparedness: Equip vehicles with emergency kits, including first aid supplies, communication devices, and tools for minor repairs. Ensure operators know how to use these items in case of an emergency.

Age restrictions for operating quad bikes and side-by-sides (SxS):

  • Quad bikes: Children under 12 years of age should not drive a quad bike. Additionally, riders under 16 years of age should not operate adult-sized quad bikes.
  • Side-by-Sides (SxS): For SxS vehicles, it is generally recommended that individuals are 16 years or older, and that only individuals who are mature enough and have received proper training should operate these vehicles. Ensuring that young riders are appropriately supervised and trained is crucial for their safety.

 

Using quad bikes and SxS for fencing in rural New Zealand can greatly enhance efficiency, but it’s essential to manage the associated risks. By implementing proper training, maintenance, and safety measures, you can ensure a safer working environment.

Stay vigilant, stay safe, and make the most of these versatile vehicles in your fencing operations.

Best regards,
Deb and the RuralSafe Team

www.ruralsafe.co.nz

Published in WIRED issue 77/June 2025 by Fencing Contractors Association NZ

You may also like: Health and safety pre-start for plant and machinery

Read WIRED online
Follow us on Facebook

© Fencing Contractors Association NZ (FCANZ)

 

Posted on

Three simple ways to free up your time

You can’t get more time. But you can make yourself use it better. Business coach Daniel Fitzpatrick from Next Level Tradie explains how.

If you’re like most tradies, you’re so busy you can barely catch a breath right now. Make hay while the sun shines. I couldn’t agree more.

But there’s one small catch: Avoiding burnout is paramount. For you, your family, your team, and for the success of your company.

Sucking it up “to just get through the next big job”? Not the best plan. Why? Because there’s always another “next big job” around the corner.

To stay on your game, handle the curveballs of this ‘new normal’, maintain strong margins and profits (and still have family time), you’re going to need tried-and-true strategies that work in the real world.

You’ll need to get a better handle on managing your time. 

Here are three of my favourite insights:

1. Only 20% of tasks move the needle

Heard of the 80/20 law? Here’s how it works:

  • 80% of referrals come from 20% of your contacts;
  • 80% of your profit comes from 20% of the jobs you do;
  • 80% of the problems come from 20% of your clients;
  • 80% of staff issues come from 20% of your team (if you have 10 staff, most of the headaches are caused by the same 1 or 2 individuals).

Same with your time: 80% of results come from 20% of the efforts.

In 8 hours at work, you’ll find that less than 2 hours of your time is spent on tasks that make a real difference.

Take a look at your week. What are the things that move the needle?

Profit-generating tasks might be: speaking with key clients; negotiating  deals; organising your team; staff training and keeping standards high; setting targets with your team; working on profitability; hiring; streamlining systems so things happen without you being involved every step of the way… and so on.

It’s very easy to get caught up in the wrong things. Fires and squeaky wheels distract you from what you should be doing. This can leave you shattered week after week. Chasing your tail. Frustrated that there is no time left to make the business better. No time left to get the important stuff done.

Instead of reacting to the demands of the day, step back. Just for a moment.

Don’t let other people’s priorities dominate your day.

Identify the 20% of tasks on your plate that drive results – things that move you closer to your goals.

Here’s how: grab a piece of paper. On the left, list all your daily and weekly activities. On the right, write down your recent wins. Then draw a line to connect your wins to tasks directly responsible for making them happen. Then you’ll know exactly where to focus your efforts.

Start each day by jotting down your top 3 tasks. Do the most important or hardest one first – minimise interruptions during this time.

Remember: you can’t do it all anyway. So you’re going to have to choose. Be strategic and intentional about how you spend your time. And you’ll be way ahead.

2. Using money to save time makes you happier

As a skilled professional, you probably think it’s crazy when a homeowner wants to DIY. It’s stressful. It takes longer. And the quality isn’t nearly as good.

But here’s something really interesting:

Most of us DIY stuff inside our own business. All the time.

I’ll tell you what though. Just because you can do something doesn’t mean you should.

Let’s be honest: The bulk of your time is probably spent on stuff you could pay someone else $30/hour (or less) to do.

Did you know using your money to free up your time actually makes you happier?

A study by University of British Columbia found people felt happier when they spent money on a time-saving purchase, rather than a material one.

People who invested in time-saving services (such as house cleaning, grocery/meal delivery, lawn mowing, errands, childcare) reported higher levels of satisfaction with life.

This was true regardless of income level, even when participants had very little disposable cash.

Let’s apply this to business. Take another look at your to-do list. Ask: does this task need to be done? For real? Does it need to be done by me? Who else could do this?

Could you outsource, employ an admin person, a foreman, or an extra pair of hands on the tools?

Do you need to be: answering the phone 24/7 (dealing with the tyre­kickers)? Wrestling paperwork, doing all the bookkeeping (invoicing, following up late payers, handling payroll)? Fiddling around sorting out IT issues, or wasting 40 minutes fixing the printer? Manning social media?

Running out to collect materials for jobs (could you pay for delivery?).

Don’t get me wrong. Delegating is not just about handing work over – but also checking in to ensure it’s done to the same high standards you expect.

Letting go is easier than you think. But having the confidence to let go – staying in control – happens by putting in place standards and systems, so you can trust that your team will get it done right.

Don’t forget to consider what you can automate. Bad systems cost you time and make your life harder. You might invest in apps so you can get paid on the spot, log timesheets, use GPS, or project management software for job tracking, and to keep clients updated/ get the same information out to everyone in real time.

3. Work expands to fill the time available for its completion

Ever swore you couldn’t possibly fit one more task into your busy day, then something urgent cropped up, and somehow you still got everything done?

Weird, right? When push came to shove, you did have time.

The secret is, for the most part, things get done when they need to get done.

It’s Parkinson’s law: work expands to fill the time available for its completion.

In other words, time is elastic. That’s why we often get more done when we have less time to do it. We fit the task to the timeframe.

Try it: set yourself deadlines. Shorten the allocated time.

Here’s another clue: “My #1 productivity hack is understanding the difference between “doing” and “done”. When you shift your focus from what you are going to be “doing” in a given time period, to what you are going to get “done”, your productivity skyrockets.” – Dr Sam Hazledine.

By now, you’ll be wondering: Can I use this idea with my team? Heck yes!

Give your crew set targets for when you expect the job to be completed by. How many hours are allocated on fixed price jobs before you start eating away at profit? Break it down to each stage to stay on track.

Sure, sometimes things take longer, and delays are unavoidable. But I can almost guarantee that if you adjust expectations and set targets, you’ll shave significant time off each job.

A drainlayer I worked with would book inspections on jobs before they were complete. When they didn’t, jobs would take 2.5 days instead of the usual 2. Staff productivity increased when “gotta get it done, because the inspector is turning up on Friday” was in play. Interesting, isn’t it?

Let’s wrap things up

A word of caution: Ideas are useless without execution. Yet to get results, you don’t have to implement every idea that comes along. Just the ones that make the most difference.

You can have your nights and weekends back and a highly successful business. My clients have achieved this and so can you.

Like the idea of getting some support and accountability to be the best version of yourself as a business owner? Book a free call with me. It’s a zero-pressure chat to see if private 1 on 1 mentoring might be right for you.

Go here and book a time now: nextleveltradie.co.nz/nextstep/

Written by Daniel Fitzpatrick, Business Coach, Next Level Tradie

Published in WIRED issue 77/June 2025 by Fencing Contractors Association NZ

You may also like: 4 mindsets that separate successful business owners from the rest

Read WIRED online
Follow us on Facebook

© Fencing Contractors Association NZ (FCANZ)

 

Posted on

Balancing family and business – employment issues in family businesses

There is a general common law presumption that family members who enter into an agreement do not intend to
create legal relations.

But how does this presumption play out in the employment jurisdiction, especially in situations where an individual finds themselves in an informal arrangement to perform work for a family member’s business?

Recent case law highlights the difficulties which can come from such informal familial arrangements, and why having a soundly constructed agreement is important even when doing work for a close and trusted relative. This lesson may be particularly important in New Zealand, where approximately 97% of our businesses have fewer than 20 employees. Many of these small businesses are likely to be family businesses.

What issues may arise from familial arrangements to perform work?

Defining the working relationship 
The main issue likely to arise in the context of an informal familial working arrangement is whether there is an employment relationship between the individual performing the work and the person for whom they are working. A workers’ employment status is important as there must be an employment relationship for a worker to be afforded many of the statutory rights available under the Employment Relations Act 2000 and Holidays Act 2003, such as the right to the minimum wage, leave and the ability to pursue a personal grievance.

In Dillon v Tullycrine Ltd [2020] NZEmpC 52, Mr Dillon claimed unpaid wages from Tullycrine, a company owned and operated by Mr Dillon’s son, Hayden, and daughter-in-law, Lisa. In 2010, Hayden, Lisa, Mr Dillon and Mrs Dillon agreed to purchase a farm to run as an agistment business, whereby customers paid to have their livestock grazed and fed on the farm. It was agreed that Hayden and Lisa would provide the funding and Mr Dillon would be responsible for the day-to day running of the farm.

In determining whether the arrangement gave rise to an employment relationship, the Employment Court noted the general presumption against an intention to create legal relations in family arrangements. However, it also confirmed that a family context does not preclude a finding of employment and noted that there are circumstances where one member of a family is vulnerable to exploitation by virtue of the family relationship. Accordingly, each case needs to be carefully considered in context and on its own facts.

The Court held that the arrangement did not give rise to an employment relationship. While Hayden and Lisa principally dealt with the management and financials, and Mr Dillon with the running of the farm, the usual control an employer would be expected to have over an employee was not present. At all material times, the arrangement was based on their familial relationship with the hope that the business would be successful to everyone’s benefit.

Conversely, in McKay v Wanaka Pharmacy Ltd [2020] ERA 230, the Employment Relations Authority (the Authority) found there was an employment relationship in the context of a familial working arrangement. In this case, Ms McKay performed a range of work for a newspaper company and a pharmaceutical company, both owned and operated by her husband, Mr Heath. This work included answering phone calls which were directed to her mobile, uploading the newspaper to the website, managing social media accounts, assisting with recruitment, taking charge of rostering and taking photos for the newspaper. There was no employment agreement between the couple and these tasks were mainly performed remotely around Ms McKay’s family commitments to her three sons.

When the couple split, Ms McKay raised a personal grievance for unjustified dismissal after being informed she would no longer be working for the companies. While Ms McKay was being paid for the work she undertook, Mr Heath claimed the payments were set up as a way of “income splitting” for tax purposes and argued that Ms McKay was not an employee because of the matrimonial relationship between the pair. However, the Authority referenced Tullycrine in noting that a family context does not preclude a finding of employment, and each case needs to be considered on its facts. In this case, the Authority applied the control, integration and fundamental tests to determine Ms McKay was an employee despite the matrimonial relationship with her husband. She had therefore been unjustifiably dismissed.

Holiday pay

Another issue which may arise in the context of informal family working arrangements is determining the amount of holiday pay due and owing on termination where it is determined that a worker has been an employee, but no record of holidays taken has been kept.

The Employment Court dealt squarely with this issue in McKay v Wanaka Pharmacy [2021] NZEmpC 112. Following the Authority’s determination that Ms McKay had been an employee for 13 years, but not had these holidays deducted from her holiday entitlements, the Court had the difficult task of determining her holiday pay entitlements on termination. This required the Court to figure out how many holidays Ms McKay had taken over this period – a challenging factual assessment to make several years after many of the holidays in question. The Court dealt with conflicting accounts from Ms McKay and Mr Heath as to how many trips away Ms McKay had taken. It then turned to consider the equally challenging question of whether and how much Ms McKay worked during her holidays, and how this affected her rights under the Holidays Act 2003. Coming to the conclusion that Ms McKay was required to work about 10% of each week she was on holiday, the Court credited this time to Ms McKay.

Ultimately, the Court determined that Ms McKay was entitled to 34.25 weeks’ holiday pay, being the difference between the accrued holiday entitlement figure in the payroll system and the holidays Ms McKay had taken. At the rate of $1208.12 per week, Ms Heath was required to pay Ms McKay a gross payment of $41,378.11 plus interest.

What does this mean for employers?

Employers cannot rely on a familial relationship to argue that a working arrangement is not an employment relationship. The common law presumption against an intention to form legal relations with family members derives from an English contract law case. While this presumption is recognised by the New Zealand employment institutions, the Employment Court has made it clear that intention is not the only factor to be considered when determining whether the true nature of the parties’ relationship was one of employment. The courts will continue to apply the well-established common law tests of control, integration and the fundamental test to the facts to determine whether there is an employment relationship, so that a family context will not preclude a finding of employment.

It is therefore important to consider the true nature of any working arrangement (including those involving family members) prior to its commencement and put in place a sound and legally compliant employment agreement which reflects this. While a party’s statement as to the nature of their relationship is not conclusive, reflecting on the working arrangement in advance will minimise the likelihood of an unexpected declaration that a worker has always been an employee. Such a declaration can see the employer slapped with an order to pay a hefty sum towards unpaid entitlements under the Holidays Act or Employment Relations Act, and open the employer up to unexpected personal grievance claims.

If you have any questions about the nature of your working arrangements or meeting your obligations as an employer, feel free to reach out to our national employment team.

Rosie Judd – Senior Associate, Wynn Williams Dispute Resolution Team (Employment)
Angela Black – Law Clerk, Wynn Williams Dispute Resolution Team (Employment)

Article republished with permission from
wynnwilliams.co.nz

You may also like: How to use a 90-day trial period legally

Read WIRED online
Follow us on Facebook

© Fencing Contractors Association NZ (FCANZ)

Posted on

Health and safety pre-start for plant and machinery

Ensuring health and safety in the fencing business is crucial, especially when dealing with plant and machinery. A well-structured pre-start process can help identify potential hazards, ensure equipment is in good working order, and protect workers from injury. By adhering to these guidelines, fencing businesses can ensure the safety and well-being of their workers while maintaining efficient and compliant operations.

1. Pre-start Meeting
Before starting any work, conduct a pre-start meeting with all team members. This meeting should cover:

  • Job Overview: Outline the tasks for the day and the equipment to be used.
  • Safety Briefing: Discuss potential hazards and safety measures.
  • Roles and Responsibilities: Assign specific roles to team members ensuring everyone knows their duties.

2. Equipment Inspection

Inspect all plant and machinery before use. This includes:

    •  Visual Inspection: Check for any visible damage or wear and tear.
    • Operational Check: Test the equipment to ensure it is functioning correctly.
    • Safety Features: Verify that all safety features, such as guards and emergency stops, are in place and operational

3. Hazard Identification

Identify and assess potential hazards associated with the use of plant and machinery. Common hazards in the fencing business include:

  • Mechanical Hazards: Moving parts that can cause injury.
  • Electrical Hazards: Faulty wiring or exposed electrical components.
  • Noise Hazards: High noise levels that can damage hearing.
  • Manual Handling Hazards: Lifting and moving heavy materials.

4. Risk Assessment
Conduct a risk assessment to evaluate the likelihood and severity of identified hazards. Use the following steps:

  • Identify Hazards: List all potential hazards.
  • Assess Risks: Determine the likelihood and potential impact of each hazard.
  • Control Measures: Implement measures to eliminate or reduce risks, such as using personal protective equipment (PPE) or modifying work practices.

5. Training and Competence
Ensure all workers are trained and competent in the use of plant and machinery. This includes:

  • Formal Training: Provide training on the safe operation of equipment.
  • On-the-Job Training: Offer hands-on training under the supervision of experienced operators.
  • Certification: Ensure workers have the necessary certifications for the operation of machinery.

6. Personal Protective Equipment (PPE)
Provide and enforce the use of appropriate PPE, including:

  • Hard Hats: To protect against head injuries.
  • Safety Glasses: To shield eyes from debris.
  • Hearing Protection: To prevent hearing damage from loud machinery.
  • Gloves: To protect hands from cuts and abrasions.
  • High-Visibility Clothing: To ensure workers are easily seen if required.

7. Emergency Procedures
Establish and communicate emergency procedures, including:

  • Emergency Stops: Ensure all workers know how to use emergency stop mechanisms on machinery.
  • First Aid: Provide first aid kits and ensure trained first aiders are on site.
  • Emergency Contacts: Display emergency contact numbers prominently.

8. Documentation and Reporting
Keep detailed records of all pre-start checks, training, and incidents. This includes:

  • Pre-start Checklists: Document the results of equipment inspections.
  • Training Records: Maintain records of all training sessions and certifications.
  • Incident Reports: Record any incidents or near misses and investigate their causes.

9. Ensuring New or Modified Plant and Machinery Have Risk Assessment and Training
When introducing new or modified plant and machinery, it is essential to conduct a thorough risk assessment and provide adequate training for safe operation. Here’s how to ensure this process is effectively managed:

Risk Assessment for New or Modified Equipment

  • Initial Assessment: Conduct a comprehensive risk assessment before the equipment is used. Identify potential hazards and evaluate the risks associated with the new or modified machinery.
  • Control Measures: Implement appropriate control measures to mitigate identified risks. This may include engineering controls, administrative controls, and PPE.
  • Review and Update: Regularly review and update the risk assessment to ensure it remains
    relevant and effective as the equipment is used and as new information becomes available.

Training for Safe Operation

  • Training Programs: Develop and implement training programs specifically tailored to the new or modified equipment. Ensure that all operators receive training on the safe use, maintenance, and emergency procedures related to the equipment.
  • Competency Verification: Verify the competency of operators through assessments and practical demonstrations. Ensure that operators understand the risks and safety measures associated with the equipment.
  • Ongoing Training: Provide ongoing training and refresher courses to keep operators updated on best practices and any changes to the equipment or procedures.

10. Ensuring Competency for Use of Plant and Machinery
Ensuring that all operators are competent in the use of plant and machinery is critical for safety and efficiency. Here’s how to manage this:

Competency Assessment

  • Initial Competency Check: Assess the competency of all operators before they use any plant or machinery. This includes verifying their qualifications, experience, and understanding of safety procedures.
  • Practical Demonstrations: Require operators to demonstrate their ability to safely and effectively use the equipment
    under supervision.
  • Regular Reassessments: Conduct regular reassessments to ensure ongoing competency, especially when new equipment or procedures are introduced.

Training and Development

  • Continuous Training: Provide continuous training opportunities to keep operators updated on the latest safety practices and equipment advancements.
  • Mentorship Programs: Implement mentorship programs where experienced operators can guide and support less experienced colleagues.

11. Keeping Maintenance Records
Maintaining detailed records of all maintenance activities is essential for ensuring the longevity and safety of plant and machinery. Here’s how to manage maintenance records effectively:

Maintenance Log

  • Record Keeping: Keep a comprehensive maintenance log for each piece of equipment. This should include details of all inspections, repairs, and servicing activities.
  • Scheduled Maintenance: Document all scheduled maintenance activities, including the date, time, and nature of the work performed.
  • Unscheduled Repairs: Record any unscheduled repairs, including the cause of the issue and the corrective actions taken.

Benefits of Maintenance Records

  • Preventive Maintenance: Regularly updated maintenance records help in planning and performing
    preventive maintenance, reducing the risk of equipment failure.
  • Warranty Claims: Detailed records can support warranty claims by providing evidence of proper maintenance.
  • Safety and Compliance: Keeping accurate maintenance records ensures compliance with safety regulations and helps in identifying potential safety issues before they become serious problems.

Additional WorkSafe NZ Regulations

In addition to the guidelines mentioned above, here are some specific regulations and requirements from WorkSafe New Zealand that are relevant to the fencing business:

1. Health and Safety at Work Act 2015 (HSWA)

  • Primary Duty of Care: PCBUs (Persons Conducting a Business or Undertaking) must ensure, so far as is reasonably practicable, the health and safety of workers while they are at work. This includes providing and maintaining a work environment that is without risks to health and safety.

2. Health and Safety at Work (General Risk and Workplace Management) Regulations 2016

  • Risk Management: PCBUs must identify hazards that could give rise to reasonably foreseeable risks to health and safety and eliminate those risks so far as is reasonably practicable. If elimination is not possible, risks must be minimised.
    Personal Protective Equipment (PPE): PCBUs must provide PPE to workers unless it has been provided by another PCBU. PPE must be suitable for the nature of the work and any associated risks, and it must be maintained, repaired, and replaced as necessary.

3. Health and Safety at Work (Hazardous Substances) Regulations 2017

  • Hazardous Substances: PCBUs must manage the risks associated with hazardous substances, including ensuring that substances are correctly labelled, stored, and handled. Workers must be trained in the safe use of hazardous substances.

4. WorkSafe Guidelines for the Provision of Facilities and General Safety in the Construction Industry

  • Site Safety: Guidelines include requirements for fencing and securing construction sites to protect the public and workers. This includes ensuring excavations are fenced, materials are stacked safely, and plant and machinery are immobilised when not in use.
  • Public Safety: Adequate security measures must be in place during non-working periods to prevent unauthorised access and potential hazards.

5. Workplace and Facilities Requirements

  • Workplace Conditions: Workplaces must be clean, healthy, safe, accessible, and well- maintained to ensure work can be carried out without risks to worker health and safety.

By adhering to these regulations, fencing businesses can ensure they are providing a safe working environment and protecting their workers from potential hazards.

In conclusion, maintaining our equipment is crucial for ensuring the safety and efficiency of our rural operations. By keeping detailed maintenance logs and addressing repairs promptly, we can prevent downtime and extend the lifespan of our tools. Let’s continue to prioritise safety and diligence in our daily tasks.

Together, we can achieve a productive and successful fencing season. Stay safe and keep up the great work!

Best regards,
Deb and the RuralSafe Team

www.ruralsafe.co.nz

Published in WIRED issue 76/March 2025 by Fencing Contractors Association NZ

You may also like: Health & Safety News

Read WIRED online
Follow us on Facebook

© Fencing Contractors Association NZ (FCANZ)

Posted on

Guilty: significant outcome in health and safety prosecution of former chief executive

The District Court found Tony Gibson, former chief executive of Ports of Auckland Limited (POAL), guilty of charges brought under section 48 of the Health and Safety at Work Act 2015 (HSW Act) in November 2024.

This judgment is of relevance to all officers of businesses and organisations across New Zealand, including directors, executives, and other leaders with significant influence over the management of that  business or organisation.

In short, the District Court found that:

  • Mr Gibson was an officer of a “person conducting a business or undertaking” (a PCBU) (i.e., POAL);
  • who failed to exercise due diligence to ensure that POAL complied with its primary duty of care to ensure, so far as was reasonably practicable, the health and safety of workers at work in POAL’s business or undertaking; and
  • that failure exposed POAL’s workers to a risk of death or serious injury.

The decision includes detailed analysis regarding the elements of the officer’s due diligence duty, in explaining why Mr Gibson had not met the relevant standards in the particular facts of this case.

The judgment is significant as it is the first time that an officer of a large New Zealand company has been charged and found guilty of offences under the HSW Act.

Judge Bonnar recognised this significance in the judgment:
“A practical tension exists… between the purpose of the legislation, which is to sheet home the due diligence duty to those at the “apex of large hierarchical organisations” and the fact that officers in such organisations will be, by virtue of the nature of their role and the size of such organisations, removed from the day-to-day implementation of business systems, processes and health and safety standards.”

Background

In August 2021, POAL and Mr Gibson were each charged with offences under the HSW Act, relating to the death of port worker, Mr Pala’amo (Amo) Kalati, on 30 August 2020. Mr Kalati died after being crushed when a container was dropped during a lifting operation.

POAL pleaded guilty to the charges laid against it. In doing so, it admitted that:

  • it failed to ensure, so far as was reasonably practicable, the health and safety of its workers on the date of the incident leading to Mr Kalati’s death, and thereby exposed Mr Kalati and one other worker to a risk of death or serious injury; and
  • it had committed a series of systemic failures, which meant that it had failed to ensure, so far as was reasonably practicable, the health and safety of its workers over a period of 14 months, which exposed those workers to a risk of death or serious injury.

Maritime NZ charged Mr Gibson as an “officer” of a PCBU, with offences under sections 48 and 49 of the HSW Act.

Judgment: summary

In a previous article, Bell Gully anticipated that the District Court might follow or rely on the recent decision from the District Court of New South Wales (NSW), SafeWork NSW v Miller Logistics Pty Ltd; SafeWork NSW v Mitchell Doble [2024] NSWDC 58 (Doble).

In that case, the NSW District Court considered an officer’s due diligence duties under an equivalent provision applicable in NSW. SafeWork NSW (the NSW equivalent of WorkSafe New Zealand) alleged that the sole managing director of the company (the “officer”) breached his due diligence duties following an incident involving a worker being struck by a forklift. The NSW District Court held that, although there had been a failure by the PCBU, the officer had not failed to exercise due diligence. In particular, the NSW District Court held that the “duty on an officer to exercise due diligence does not mean that the officer must do everything that the PCBU must do to ensure compliance with its own duty and that a failure by the PCBU does not, of itself, demonstrate a failure by an officer to exercise due diligence.”

Judge Bonnar considered the Doble decision, as well as other Australian cases decided under previous statutes. However, Judge Bonnar recognised that the Australian precedents, including Doble, were not binding and that the charges faced by Mr Gibson needed to be determined on the facts of his own case.

Judge Bonnar’s analysis included reference to the following facts, which were material to the finding that Mr Gibson had failed to exercise the care, diligence and skills that a reasonable officer would have exercised in the same circumstances:

  • Mr Gibson was ultimately responsible for health and safety at POAL. He was tasked with a number of key health and safety responsibilities and retained responsibility for monitoring and reviewing the performances of his subordinates and POAL’s systems. In this sense, he was a “hands on” CEO in relation to port operations and safety issues in many practical ways (as opposed to “acting remotely from actual port operations or acting simply as a ‘head office-based CEO’”).
  • Mr Gibson had failed to adequately address recommendations to make changes to the structure of assigned responsibilities and accountability for the POAL executive team with regard to health and safety, despite being aware of the specific recommendations to do so.
  • Mr Gibson failed to ensure that POAL’s Health and Safety Steering Committee (the functional body for overseeing occupational health and safety management within POAL) was adequately performing its functions (Judge Bonnar found that it was not).
  • Mr Gibson was aware that POAL’s assessments of critical risks were inadequate (or ought to have been aware of this, by reason of monthly safety and wellbeing reports).
  • Mr Gibson was on notice to POAL’s ongoing difficulties in adequately monitoring work done on wharves, by virtue of POAL’s previous convictions. It was his responsibility to ensure that appropriate systems and processes were put in place to address those failures.
  • Mr Gibson, with his knowledge and experience in all the circumstances, would have recognised the shortfalls in POAL’s management of the specific work that led to Mr Kalati’s death and should have ensured that POAL utilised appropriate resources to address those shortfalls.

Judge Bonnar held that these circumstances made it materially more likely that POAL would breach its duty of care to ensure that stevedores were not exposed to the risk of death or serious harm. Mr Gibson’s failure to exercise due diligence as a result of these matters thereby exposed the stevedores to the risk of death or serious harm by being struck by objects from operating cranes. Accordingly, Mr Gibson was found guilty of charges under section 48.

Importantly, Judge Bonnar confirmed that the fact that POAL breached its primary duty of care to workers did not automatically lead to the conclusion that Mr Gibson failed in his personal duty:
“A PCBU can breach its duties despite proper efforts by its officer to do all that he or she could reasonably have been expected to do in the circumstances, having regard to what the officer knew, what they ought to have known, and their ability to make or influence decisions in relation to the relevant matter.”

Broader considerations

While each case turns on its own facts, it is important for New Zealand officers to carefully review this decision, and reflect on learnings for their own organisational contexts.

Some key reflections may include:

  • How do I review the business’s health and safety systems and ensure that they adequately address health and safety risks – on an ongoing basis?
    The decision confirms that compliance with the due diligence duty is not achieved through simply relying upon personnel with specific health and safety duties – rather, officers should ensure that they properly enquire into the organisation’s systems and are adequately addressing health and safety risks. This requires regular monitoring, review, and auditing of systems, and pro-active monitoring, verification, and interrogation of the information received.
  • How am I demonstrating active engagement in my due diligence obligations, beyond “oversight”?
    The decision emphasises that the duty to exercise due diligence is not met through “governance or directorial oversight functions” alone – it requires something more. The officer must personally acquire and maintain sufficient knowledge to be reasonably satisfied that the PCBU is complying with its duties under the HSW Act.
  • Am I relying on the “best” expertise and advice in relation to health and safety matters in my industry?
    Although evidence about the state of knowledge of health and safety matters within the relevant industry at the time, and practices of comparable businesses, may be relevant to an assessment of whether the required due diligence standard has been met, Judge Bonnar noted that “if the officer’s actions objectively fall below the standard required by the statute it does not assist the officer that comparator officers may also have routinely been falling below that standard.”

This decision confirms that due diligence duties apply to all officers across all PCBUs, large and small, with both flat and hierarchical structures: “the fact that an officer may operate at the head of a large, hierarchical organisation does not mean that the officer’s obligations are diminished.” However, we note that Judge Bonnar emphasised that each case is highly fact specific.

It is not known at this stage whether Mr Gibson will appeal this decision. The maximum penalty that Mr Gibson may face in respect of the charges upheld against him is a fine of NZ$300,000.

Article republished with permission

Published in WIRED issue 76/March 2025 by Fencing Contractors Association NZ

You may also like: Incident and Injury Reporting and Investigation

Read WIRED online
Follow us on Facebook

© Fencing Contractors Association NZ (FCANZ)

Posted on

New ACC Recovery at Work Resources

ACC has two new resources to help businesses support recovery if an employee is injured and needs time off work.

In many cases, and with some temporary adjustments, people can safely recover from injury while working and use work as an active part of their recovery and rehabilitation process.

The sooner an injured person can get reconnected back to work, the better it can be for their mental well-being and physical recovery. They’ll also be more likely to return to their job, helping you and your team get back to business as usual.

Each year, ACC receives almost two million new claims. Be prepared so you can play an early and active role in the
recovery journey for your employers, regardless of whether they’re injured inside or outside of work.

The new ACC resources are:

  1. Getting started guide for supporting your injured employee
    This resource provides an overview of how employers can support their employee after an injury and help them return to work.
  2. Recovery at work guide
    This one-page guide is for employees to help them identify key steps they can take if they are injured and how to work with their employer to return to work. Employers can share this with any employees who get injured.

There’s more information and resources on ACC’s website acc.co.nz

www.acc.co.nz/assets/business/Supporting-your-injured-employee-getting-started-guide.pdf

www.acc.co.nz/assets/Uploads/Your-recovery-at-work-guide.pdf

Published in WIRED issue 76/March 2025 by Fencing Contractors Association NZ

You may also like: Health and Safety News

Read WIRED online
Follow us on Facebook

© Fencing Contractors Association NZ (FCANZ)

Posted on

7 tips for parenting while running a business

Anyone who has kids and a small business deserves a medal. It’s not easy. Running a business takes a lot of focus and energy, so how do you juggle all this and still look after your family, especially if both of you are working in the business?

I have 6 kids, but I’m no expert on parenting. So I went looking for answers and found 7 proven ideas to help all of us balance work and home:

1. Pick and choose

To improve your business, taking stock is the first step.  If you’re feeling guilt, pinpoint the root cause. Did you miss a birthday? Left the kids hanging while you took a work call? Worked on Sunday instead of going to the beach together like you promised?

Get clarity around what you’re okay (and not okay) with missing out on. Figure out what’s important and let yourself off the hook for other stuff. What’s non-negotiable for you? Being there for Christmas Eve, the annual fishing trip, school performances, their Saturday games, weekly movie nights, or maybe it’s just being home in time for dinner every night?

Once you know what it is, protect that time by having a “no” speech ready anytime something (or someone) else tries to encroach. Be aware that “yes” and “no” operate in balance. Just like dropping your price might have dire consequences later (especially in this environment), saying “yes” to a certain client, might mean saying “no” to your family for the next few weekends.

Make sure to let go of other people’s expectations. Weigh your own actions. Most people have no idea the amount of work and sacrifice it takes to run your own business. Just don’t miss the things that would gut you to miss.

2. Set the tone

What we expect is what we will see. Don’t buy into ‘terrible twos’ or ‘disrespectful teens’. Focus instead on the best things each season of parenting brings.

Likewise, focus on what is good about being in business. How you talk about your business = how your kids will feel about it. If you talk like you hate your business, your kids are probably going to internalise that, parrot it, and feel a bit septic about the time you spend working.

A good business makes you more money than a regular job would. Gives your kids better opportunities and a head-start in life. Heck, you’ve created flexibility to help out with the kids more and spend more time with them. You’re providing for your family. That’s badass. Own it.

Talk this through with your kids, help them see the reasons you work so hard. Soon they will be grown and have their own careers (or business). Kids learn by watching (and mimicking) us. Are we modelling healthy behaviour in how we handle the curveballs and how we treat our clients and team?

3. Accept that it’s messy

You can’t do it all. Don’t try. Get help with the kids, the house, the business. As much as you can in the current scenario.

We’re not supposed to parent alone. Encourage healthy influences in your kids’ lives that are not you. Find childcare options your kids love and don’t feel guilty. Hire an online tutor, cleaner, lawn-mowing service, meal delivery, anything that makes it easier!

Work-wise, outsource and delegate as many of the $25/hour tasks as you can. To be a successful leader, spend your time on the high-level tasks. Save time by systemising and streamlining as much as you can in every area. Now is a great time to lean on technology.

4. Optimise the in-between

Research shows the in-between moments of regular family life (activities like chores or taking the car for a warrant) can do as much for family bonding as any planned ‘family fun’.

Here are the things studies have associated with improved outcomes:

  • Talking to and listening to your kids.
  • Making it clear you have ambitions for their future.
  • Being emotionally warm.
  • Teaching them letters and numbers.
  • Taking them on excursions.
  • Reading to them daily (and encouraging them to read for pleasure).
  • A regular bedtime.

Easy ways to make the most of things you’re doing anyway: Implement a ‘no screens at the dinner table’ rule. Turn your phone on silent – clients can wait an hour. In the car: practice times tables, ask your kids what problems they want to solve in the world, or listen to an audiobook together. Cooking, doing dishes, folding laundry? Have the kids help; blast the family soundtrack or ask them about Minecraft. Going out to pick up supplies, or clear the PO Box? Take one kid along for some 1 on 1 every time you run an errand (if it’s safe). Bring the kids into the business. Give them simple jobs in the office, or begin teaching them your trade.

5. Make memories

For parents struggling with lack of time, Karthik Rajan shares this gem: Time doesn’t matter. Memories do.

Question: “What are some of your best memories of things your parents did for you?” In a FB group, this generated 286 comments. Most were about simple moments that didn’t cost money:

“My dad tucking me in at night and making up stories!”
“Chasing us around the house endlessly.”
“My mum would put her hand on my forehead when I was sick.”
“She always put notes in my lunch.”
“Working on projects with me.”
“Going fishing with my Dad.”
“Tuesdays was the day dad picked
me up, it was our tradition to stop for
chocolate on the way home.”
“Every Sunday he would make pancakes.”
“Work wise, outsource and delegate as many of the $25/hour tasks as you can. To be a successful leader, spend your time on the high-level tasks.
“My mum used to make the bed with me in it.”
“She’d put towels in the dryer to warm them before we got out of the bath.”

I teach my clients the 80/20 rule to create more profit. Similarly – identify and focus on the 20% of daily activities, the simple moments that matter most to your kids.

6. Play at 100%

One study found children were better off when parents’ work was challenging and enjoyable, even if it limited time at home. However, this only held if, when Dad was home and off-duty, he was available, and not on his phone constantly or obsessively thinking about work.

Gary Vee is known as a workaholic. Yet he says: “I play in extremes. My daughter had a recital, I was the first parent in line for it. On weekends, I am all in – 100%. I’m not playing 4 hours of golf. I’m not doing things other people are doing. I’m all in on the kids.”

CEO Sharran Srivatsaa has a good tip: “On my way home, I pull over, I finish any calls, load my meditation app, change my state to ‘father and husband’. When I get home, I walk through the door present and joyful. This simple 6-minute state-change transformed my life”.

7. Love your work, or quit

It’s probably not possible to build a family business without your partner having some role. However, it’s important you’re both playing to your strengths and on the same page. It’s always helpful to take a step back and assess: “Is this working?”

A common scenario is when the female partner has agreed to do accounts and run the show behind-­the-scenes, while he is on the tools, or with clients. If this isn’t her natural skillset, or she’s constantly overwhelmed, it may be time to look at another option. Not all couples can, or should, work together (especially if there’s an eroding baseline of respect).

It’s also wise to consider how much time she really has available, especially if you have kids under 5 or still in primary. Factor in relentless interruptions and school (either at home or school pickups and drop-offs), sick days, and school holidays – and the required consistency in the role may be hard or impossible to achieve.

Research also showed kids are mentally healthier when mum feels she has control over what happens in her workday and also has time away for self-care (this increased her capacity, compared to using that same time on housework).

As we wrap up, here’s a sobering stat:
93% of the time we spend with our kids is over before they finish high school. Once they move out, we won’t see them nearly as much, and have less influence.

Time is short. Life has to be on your terms. Yes, your business is probably going to require more attention in this season. To avoid regrets, and your kids missing out, the key is to set your boundaries and schedule in advance. So work doesn’t encroach on family time.

If you need help to get your business in line with your family – or just want someone to talk strategy with – hit me up for a free 45-minute coaching session here: https://nextleveltradie.co.nz/nextstep/

Written by Daniel Fitzpatrick

Published in WIRED issue 76/March 2025 by Fencing Contractors Association NZ

You may also like: The right to disconnect

Read WIRED online
Follow us on Facebook

© Fencing Contractors Association NZ (FCANZ)

Posted on

Health and Safety News

Launch of the new Health and Safety Governance Guide

The Institute of Directors is launching with WorkSafe, and in association with the Business Leaders Health and Safety Forum and the General Manager Safety Forum, a new Health and Safety Governance Guide.

New guidelines for Directors of companies and business groups for health and safety have been released – it’s worth a read through team. WorkSafe and the Institute of Directors have been looking at the requirements of the business owner and Directors to ensure that robust compliance is in place for the management of Health and Safety following the 2019 Whakaari incident.

DOWNLOAD THESE PDF RESOURCES

Health and Safety Governance – Quick Guide

Health and Safety Governance: A Good Practice Guide

Health and Safety Governance 2024 Self Assessment

 

The Guidance states that Directors should be asking:

  • What can I do to support my organisation to deliver safer outcomes and protect our people?
  • Are we doing enough to keep our people safe?
  • Do we have a clear enough idea of what success looks like in health and safety?
  • What are the critical risks for my organisation?

Directors should focus on the organisation’s purpose, developing a vision of success, a plan to achieve it safely, and how to measure its performance.

What else should Directors be doing?

They need to lead and develop a strong purpose and health and safety culture, but they also need to be aware of their business.

  • The board needs to exhibit ‘tone from the top’ – and actively encourage near-miss reporting. It should act on this information, reflecting on improvements that could be made, but also what worked to prevent a fatality or catastrophic event.

The final tip from each panellist for leading better governance of health and safety, included:

  • Understand your business risks, how the business is managing them, and ensure you’re comfortable with the process in place. If not, do something about it! Be brave, be courageous
  • Directors must remain curious and sceptical and not accept things at face value, and keep asking deep, penetrating questions
  • Consider the ethics and common sense you can apply to your organisation.

Published in WIRED issue 75/December 2024 by Fencing Contractors Association NZ

You may also like: Thriving through the summer – A guide to Health, Safety & Wellbeing at Work

Read WIRED online
Follow us on Facebook

© Fencing Contractors Association NZ (FCANZ)

 

Posted on

Estimating how many hours the job will take: why 83% get it wrong

How often have you quoted a job but ended up losing on it because the hours blew out? It happens to everyone once in a while… but get this wrong too often, and you won’t be very profitable.

Even the big players in our industry get this wrong more than they’d like to admit… Fletcher’s got in trouble last year with overruns on a number of their major projects. It cost them millions.

Did you know: the Sydney Opera House was completed a massive 10 years behind schedule?!

Clearly, when you want to make money on your jobs, it’s very important to accurately estimate how much time they will take. If you’ve ever wondered why your quotes don’t work out, this is a good starting point.

Research shows only 17% of the population can accurately estimate how much time a job or task will take. Basically, we’re all optimists. We tend to believe the future will be better than the past.

If only 17% can estimate time correctly, that means 83% are getting it wrong. Mistakes include:

  • Failing to consider how long it’s taken us to complete similar tasks in the past (science calls this the planning fallacy)
  • Assuming that we won’t run into any complications that will cause delays (science calls this an optimism bias)

There are a lot of moving parts in a business, and if you often underestimate hours on jobs, or don’t allow for unexpected curveballs, you won’t make the margin you need to.

Achieving target margins consistently on every job is key when it comes to being profitable. Let’s not forget: when costs exceed what you quoted, that cold hard cash comes directly out of your pocket.

In very real terms, that means less income for you, and stressful cashflow. And that is all kinds of bad, especially for a family business. Plus, cashflow headaches are the #1 reason for going broke.

So how can the average tradie business owner override their planning fallacy and optimism bias?

The secret is to be dealing with concrete numbers. They make things very black and white, allowing for smarter decision-making. That’s the kind of strategic thinking required for both quick wins and long-term success.

I’ve worked with hundreds of tradie businesses, and I can tell you: it’s amazing the insights you can get from a simple deep dive into the numbers – when you know what to look for (most don’t).

Yes, one important part of this is back-costing (checking all costs – including time/labour – on previous jobs to see how your quote stacked up against what actually happened).

To do this, you first need to be working with the right project management software, time-tracking app or system for your specific business. Then, the main thing is, use a structure – so back-costing is easy and doesn’t take all day! It is especially important if you run multiple jobs and have a large team.

Revisit regularly and make sure you are charging enough. The trick is to then actually deploy this historical data and turn it into increased accuracy on your next job.

When I assist clients in the business coaching process to really look at their previous jobs, they can see exactly where they’re losing money on under-quoting. From then on, everything becomes much easier.

Be sure to use a pricing formula, so you have certainty that your price is fair. Not too low that you won’t make money. Not too high that you’ll be priced out (or if you are, you can walk away confident, knowing the margin was not enough – you don’t work for free).

Using a formula also means you price consistently regardless of whether you’re feeling optimistic, tired, are desperate for work for your team, or have too much on already.

Include your ‘fudge ratio’ calculation and buffer percentage to build in extra hours for delivery delays, staff absences, weather, etc.

Finally, you need a strong gross profit margin

A ‘good’ margin to add on top varies for each company, depending on your overheads and industry. So it’s important to know what is a good margin percentage to be aiming at in your market.

Although, if it’s not at least 20%, I’d encourage you to make some adjustments right away. Anything under this, and you won’t be able to cover overheads and still make the profits you need to maintain a successful business.

Studies also show that while we are generally bad at estimating how long it takes us to do the job, we’re quite good at estimating how much time the job will take when others are doing the work. So, harnessing the talents and objectivity of someone outside your immediate team (like a QS) could be a smart move.

Ultimately, accurate predictions and back-costing effectively ensures you will achieve the target margins you need, become more profitable, and grow safely, even with the variables and any bias you may have.

Tweaks like this in profitability and productivity typically get my clients return-on-investment far exceeding costs inside 3-6 months.

Book a time with me here to find out how I might be able to help you:
nextleveltradie.co.nz/nextstep/

Daniel Fitzpatrick

Published in WIRED issue 75/December 2024 by Fencing Contractors Association NZ

You may also like: 4 mindsets that separate successful business owners from the rest

Read WIRED online
Follow us on Facebook

© Fencing Contractors Association NZ (FCANZ)