Staples

Jake Burns remembers growing up surrounded by all things fencing and farming –  he soaked it all up. At 15, he left school and began working for a local contractor in Matamata. It is safe to say that he loves the fencing life.

Jake’s dad, Bryce Burns, was a fencing contractor too. Bryce carried on farming but had hung up the wire strainers by the time Jake took up the tools 12 years ago. 

Fence work quickly took the teenager across the Waikato, down to Taranaki, over to Gisborne on the East Coast, and South to the Mackenzie Basin, then through the rest of the Mainland. He gained first-hand experience of the variety of terrain, environments, and fencing styles New Zealand has to offer.

“Gisborne is challenging land. Steep rough rugged country in the back blocks. At the time I started there, everything was done by hand because you couldn’t get a lot of machinery up into the hills. It was spade and hammer stuff. Physical work.” 

“Now, in Te Anau, the ground is hard. We use rock spikes and rock drills to blast through bedrock. Some people use explosives as well. It is definitely some of the hardest ground that I have fenced in. Steep in places, but mostly rolling hill country down to flat land. It took me some time learning how to fence in this ground coming from the Waikato. Up North, it is soft ground and beautiful soil. Down here, it is hard rocky ground, totally different.” 

Over the last decade, Jake has found what techniques work for him and developed his own style. 

“When I started fencing, I knew the basics. Then, as I moved around the country, I saw that many fencing contractors had their own ways of doing things. It was a great way to learn a lot of different fencing skills and techniques as well as what fence or wire work might suit one environment more that another. I love that variety.”

“Another great aspect of fence contracting, is that we are a curious bunch. It’s not unusual to have a bit of a yarn and share ideas about different fencing systems or the best tools we’ve used across various projects.”

Jake and his partner Chelsea George are now in the Te Anau Basin, having relocated near the end of 2021 while still in the sting of Covid restrictions.  Access to the great outdoors, hunting, and the good nature of Southland people were big parts of what drew them in. Jake started JB Fencing in August 2021.

“As a business, I focus on rural fencing and stock yards. I don’t expect to be the biggest fencing contractor in the region, but I want my reputation as a fencer to be built on the quality of my work, efficiency, and reliability.” 

Greg, Jake’s very first employer, encouraged him to go out on his own. 

“Greg is a very successful fencer himself. His confidence in my abilities helped me take the leap. I can call him up for advice which has been invaluable. Reaching out and getting to know local farmers and fencing contractors has also been really key to managing these early days of the business. Presently, I’m subcontracting as part of a crew on a big predator fencing project with waratahs and six-foot netting.”

As part of the new business set up, Jake purchased a Stockade ST400i cordless power stapler. 

“It is probably my favourite tool – I rate them. I’d used the ST400i a lot during several contracts around the country. I love the speed and reliability. By the time I can staple off two posts with a hammer, using the ST400i I would have already done four and it doesn’t bash up insulators like a hammer will.  It will shoot straight. It’s simple and there’s no mucking around.”

“Also, it’s so easy to use, when you have new staff, you can send them away with the ST400i and you know that the tool will do the job correctly.” 

Still, moving into a new business was not without trepidation. Jake had moved to a new region, bought large ticket items including a tractor and post driver, and began building up a client base from zero. 

“The reward of starting my own business by far outweighs the risk. For me, it’s the reward of meeting new people, being my own boss and forging my own path, and I’m always still learning. There’s flexibility of working on your own or as part of a crew. I love do

ing a good job, seeing the finished product, and seeing people happy with my work. My hope is to build the business and take on staff — and I’d like to get some big station project work.”

“Fencing is a good business to be in.”  

Article supplied by Stockade

www.stockade.com

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Business Coach Daniel Fitzpatrick shares the client communication soft skills you’ll need to make sure your customers are thrilled with the end result, pay on time, and tell all their friends about you.

Ever found yourself at the finish line of a job but the customer still wanted more?

You did everything you could to get it right. Hustled to find materials. Answered their calls after hours. Agreed to meet them on site whenever they had concerns. 

If only they knew everything you’ve done to ensure a quality job.

So why are they complaining? 

• Usually, the pushback is over workmanship.
• But in most cases – the real cause is a breakdown in communication.

Here’s what’s interesting: If you can bring your communication up a notch – most complaints will disappear before they even begin. Saving you hours of extra work and stress. 

The secret is that great communication is proactive. From the first conversation with your customer to the final walkthrough to ensure they’re happy.

The good news? Communication is a skill. This means it can be learned. You can always be improving. 

Here are 5 winning strategies:

1. Invest in your onboarding (and win back your time)

Often we are too close to our work and assume that the client knows more than they do. Many clients have no idea what goes into a job. That’s why they’re often coming to you with queries as the job progresses.

Instead, set things up right: Create a brief “how we work” guide. It serves as a conversation starter on what clients can realistically expect.

This sets your standards from the outset and is something you can go through with every new client. Include things like:

The process – very clearly lays out each step including due dates of decisions they’ll need to make.

• When and how they can contact you (eg you’ll reply ASAP but only during work hours).
• When and how they can expect updates? Is it site photos, videos, or in-person walk-throughs?
• When milestone meetings will be (these should be in person for bigger jobs).
• What happens if progress payments are missed (ie. work stops).
• What handover will look like?

Getting your onboarding right builds trust with customers and means they aren’t left in the dark about what’s coming next. So you’re free to work on the job itself. Without being bombarded with questions at inconvenient times.

2. Find the real issue (if they’re getting too involved)

What if the customer starts questioning your work? It’s a familiar scenario: They’ve spent 2 minutes on Google or chatted to a builder mate. Now they’ve got some “helpful tips” for you. 

They think they know better when you’ve been in the trades your whole working life! It’s perfectly natural to feel frustrated – but it won’t make things better.

These customers probably just heard too many stories. From people with leaky homes, or who had a bad reno and told them all about it.

You can stay in control by digging deeper: Ask them what they’ve heard. Uncover their main concern. Repeat back to them to make sure you understand. 

Then explain your process and why what they are afraid of won’t happen. You’ll diffuse the situation, and make them feel reassured they’re in safe hands.

No doubt about it: When potential issues crop up during the job, clear and transparent communication is a must. Be in touch early and often.

3. Learn to say no to the clients you don’t want

Some customers are, of course, more trouble than they’re worth. 

We’ve all been there: They didn’t pay on time. Had unrealistic expectations. Maybe even got aggressive. They definitely complained about everything. 

The trick is to be clear about what your ideal client looks like – so you can quickly recognise the ones you don’t want. Look: It’s okay to turn down work. Just because someone offers you work doesn’t mean they’re a good customer.

Make sure you notice any red flags when you first chat with clients. Have they had problems with other tradies before you? Do they want the job done yesterday? Do they complain about their neighbours even? These might be signs they’re difficult to deal with. 

You’ll need to test if your assumptions are correct. If they are, be the nice guy with a backbone. Tell them your company isn’t the right fit for this work. Avoid the temptation to explain these signs away; you’ll thank yourself later.

4. Separate yourself from the rest

Most tradies aren’t concentrating on delivering great communication. It’s an easy opportunity to get ahead of your competition.

You can easily wow and delight customers if you just do a few small things right: 

• Tell your clients about the things you aren’t charging them for. Like when you encounter a hiccup and have to spend extra time spent prepping the job.
• Arrive on time, or if running late, text an update. (81% of customers find lateness highly unprofessional. Don’t get off on the wrong foot.)
• Explain things in their terms. (If your mum wouldn’t understand it, they probably won’t either.)
• Train your crew to be extra polite – please, thank you, excuse me. No swearing.
• Treat their property like your own. Remove rubbish. Leave the site better than you found it.
• Give a final handover worthy of their investment. Take your time, walk them through, show them all that went into the job. Any niggles can be easily squashed.
• A quick courtesy call to follow up after completion.

Make “looking good to the customer” a team mission. 

And educate staff on the actual value of a customer. Show them how much it costs to acquire new customers. You’ll get more effort and buy in from them when they understand this.

5. Build a team your customers love

As your team grows, it gets harder to keep consistent standards on all jobs. Quality slips. Mistakes happen. 

Still, it’s your reputation on the line. You’re the one explaining it to the customer. 

That’s why when tradies come to me for business advice, one of the first things we look at is team performance. Getting everyone on the same page and improving individually and as a team. 

You need to have good systems and rules for your crew so things aren’t missed. Send your team into jobs fully loaded: Use detailed job folders, set processes for the way things should be done, and quality control checklists.

Have clear standards and expectations that your team is accountable to – and rewarded for. This helps your staff take ownership. (Those with attitudes will either step up or step out.)

Getting these operating systems right means you can be away from site without worrying what is going on. Keep tabs on the right things – then you or your foreman can intervene early if issues crop up.

With these things in place, you can deal with problems before the client ever sees them. Less re-work and complaints. No squabbles over the bill. 

Ultimately: Put a bit of extra effort into communication and you’ll quickly become known as the best. Expect 5-star reviews, good recommendations… and bigger and better jobs with clients you enjoy.  

Article supplied by Daniel Fitzpatrick

www.nextleveltradie.co.nz

Published in Business, Health & Safety, Environment in WIRED Issue 66 / September 2022 by Fencing Contractors NZ

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What is your duty? A reminder for PCBU and Officers/Directors. Employers MUST pay for Personal Protective Equipment (PPE).

Every employer shall ensure that suitable personal protective equipment is provided to their employees who may be exposed to a risk to their health or safety while at work except where and to the extent that such risk has been adequately controlled by other means which are equally or more effective.

You cannot pass on the cost of providing PPE (in full or part) to your workers. 

You cannot make your worker provide their own PPE as a condition of employment. 

Even when a worker provides his or her own PPE, the employer must ensure that the equipment is adequate to protect the worker from hazards at the workplace.

“I’m not their mother” no excuse for lax health and safety

In a recent WorkSafe prosecution, a Kaikoura fencing contractor was convicted and ordered to pay costs for failing to provide appropriate eye protection for an employee. 

The agricultural fencing sole trader had a 17 year old worker who was chiselling when a piece of metal flew into his right eye in March 2020. Despite multiple surgeries, the teenager lost sight in the eye. 

The fencing contractor did not notify WorkSafe of the injury, as required, but several months later the victim’s mother did, triggering an investigation. 

The contractor was charged under the Health & Safety at Work Act and in July 2022 was sentenced to pay $22,500 in emotional harm and consequential loss in the Kaikoura District Court. 

When a WorkSafe inspector asked the fencing contractor whether he told workers to use protective gear, his response was: “I’m not their mother and going to dress them every morning”.

It was confirmed that he had not provided full instruction to the victim on the use of personal protective equipment (PPE), such as safety glasses, because in his words “it was common sense”.

He also indicated to WorkSafe he felt it was too expensive to buy PPE, saying: “I’m too small for that sort of… carry on”.

WorkSafe’s national manager of investigations, Hayden Mander says the employer’s comments reflect an outdated, unacceptable, and cavalier attitude.

“A young man at the start of his working life now has seriously impaired vision. It’s astounding for an employer to not understand the seriousness of the situation.”

“The cost of health and safety is part of the cost of doing business. The worker should have been provided with appropriate PPE, including eye protection, and required to wear it when using a chisel and hammer or any other task where there is a risk of an eye injury.”

Workers who are vulnerable because of age, inexperience, or conditions of employment may be less likely to question health and safety practices or to speak up if they are unsure.

“Beyond the obvious health and safety gaps in this case, it’s both illegal and morally wrong for an employer of any size to not notify WorkSafe of an incident like this. No employer is exempt,” says Hayden Mander.  

WorkSafe prosecution: 

• Judge Raoul Neave ordered $22,500 be paid to victim for emotional harm and consequential loss
• The fencing contractor was charged under sections 36(1)(a), 48(1) and (2)(b) of the Health and Safety at Work Act 2015 being a person conducting a business or undertaking (PCBU) having a duty to ensure, so far as reasonably practicable, the health and safety of workers who work for the PCBU, while workers were at work in the business or undertaking, namely while erecting a fence, did fail to comply with that duty, and that failure exposed workers to a risk of serious injury.
• The maximum penalty is a fine not exceeding $300,000.
• The fencing contractor was also charged under sections 56(1) and (6)(a) of the Health and Safety at Work Act 2015 being a PCBU who became aware that a notifiable event arising out of the conduct of the business or undertaking occurred on 12 March 2020 (the notifiable injury), failed to ensure that the regulator, WorkSafe New Zealand, was notified of the event as soon as possible.
• The maximum penalty is a fine not exceeding $10,000

Article supplied by Rural Safe

www.ruralsafe.co.nz

Published in Business, Health & Safety, Environment in WIRED Issue 66 / September 2022 by Fencing Contractors Association NZ

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In this second instalment of our focus on retaining walls, Nick Liefting explains the conditions under which Retaining Walls are exempt from building consent. 

Consent for retaining walls

Retaining walls that do not require a building consent under the Building Act 2004 are as follows: 

Retaining walls up to 1.5 metres depth of ground:

The Building Act 2004, Schedule 1, Exemption 20 allows you to build a retaining wall (which is any wall constructed to retain or support the surrounding ground) without needing to get a building consent as long as it does not retain more than 1.5 metres (vertically) of ground and it includes ground water drainage in relation to retaining walls.

This exemption does not apply to retaining walls that are subject to any additional load or surcharge such as:

• vehicle driveways
• parking spaces
• swimming pools
• buildings
• other retaining walls
• sloping ground above the top of the retaining wall

If the ground above the top of the retaining wall is only gently sloping, this may not be considered as ‘surcharge’.  To determine the impact of the sloping ground and its pressure on the stability of the proposed retaining wall, you may wish to seek professional advice, for example, from a Chartered Professional Engineer.

Examples:

What is exempt? 

1.   A builder plans to reconstruct an earthquake-damaged timber retaining wall that is less than 1.5 metres high. There is no surcharge on the retaining wall, so a consent is not needed.
2.   A motel owner decides to terrace the motel’s uphill sloping section by building three, 1.2 metre high concrete crib retaining walls to create three level platforms, each of which will be planted. As there will be sufficient horizontal separation between each of the retaining walls so that no surcharge load will be imposed on a lower wall, no building consent will be needed.

What needs consent?  

1. An owner wishes to form a level platform for a garden below a neighbour’s driveway. To do this, she intends to construct a 1.2 metre high retaining wall.
   As the proposed retaining wall is subject to a surcharge from the neighbour’s vehicle driveway, it will require a building consenT
2. A retaining wall ranges in height from 900 millimetres to 1.8 metres. The part of the retaining wall that exceeds the maximum allowable height of 1.5 metres will require a building consent.
3. Retaining walls with surcharge regardless of height. 

Retaining walls up to 3 metres depth of ground 

The Building Act 2004, Schedule 1, Exemption 41 exempts retaining walls designed or reviewed by a Chartered Professional Engineer of up to 3 metres and in a rural zone, as long as they are not too close from the boundary or existing buildings. This exemption recognises that in low-density rural zones such as farms, the consequences of failure of any retaining wall are less likely to cause injury than they would be in higher density urban environments. The additional requirement for a Chartered Professional Engineer to be involved also helps to make sure that retaining walls covered under this exemption are less likely to fail.

Examples:

What is exempt?

1. Constructing a retaining wall on a rural property that is 2.5 metres high, 3 metres away from an existing dwelling, and is designed by a Chartered Professional Engineer.
2. A farmer decides to rebuild an earthquake-damaged retaining wall on their rural property that is 3 metres high and located 6 metres away from a legal boundary. The wall design has been reviewed by a Chartered Professional Engineer.

What needs consent?

1. Constructing a retaining wall on a rural property with a height of 3 metres, 1 metre away from an existing dwelling and designed by a Chartered Professional Engineer. A building consent is required because the wall is closer to the dwelling than its own height.

2. Constructing a retaining wall on a rural property that is 3 metres high and 5 metres away from the property boundary which has been designed by an engineer, but not a Chartered Professional Engineer. Though the retaining wall is not located closer to a legal boundary than its own height, a building consent is required as the wall has not been designed or reviewed by a Chartered Professional Engineer. 

 

Article provided by Nick Liefting 

www.nlcontractors.co.nz

Published in Training & Events in WIRED Issue 66 / September 2022 by Fencing Contractors NZ

 

Read the other articles here:

• Part 1
• Part 2
• Part 3
• Part 4
• Part 5
• Part 6
• Part 7

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© Fencing Contractors Association NZ (FCANZ)

The easiest and fastest way to keep a healthy mindset is to make sure we’re cleaning out the ‘little stuff’ before it becomes ‘big stuff’.

If we don’t clean our minds of the little niggles early on they tend to pile up and get out of control to the point where they can become overwhelming. By taking actions daily we’re going to eliminate small unwanted negative thoughts building up to become big all-encompassing negative thoughts.

3 key steps to a healthy mindset are as follows:  

1. Focus

This is the most important thing to maintain a healthy mindset, because where you focus your energy and attention is exactly what you’ll get more of. 
By focusing on what’s wrong, we’re going to find more of what’s wrong. If we’re able to focus on ways to resolve a problem or challenge then we’re going to look for opportunities and other ways to resolve the problem or challenge we have. It takes a conscious effort to focus on what’s right versus what’s wrong. Ask yourself better questions like “What am I missing here? What am I not yet seeing? What’s a better way?” 

What’s WRONG is always available, but so is what’s RIGHT.  

2. Meaning

The meaning we give to any situation is 100% responsible for how we see the way through it (or seeming like there is no way through it). 

If we’re looking at an issue and then we say to ourselves ‘this is going to be hard’, or ‘it’s annoying’, or ‘it’s frustrating’, then we’re going to end up focusing more on hard, annoying or frustrating. 

What we want to do is apply an empowering meaning to any situation. We want to look at how the situation is going to benefit us, or make us stronger, or make us better, or give us a lesson which will help streamline our life/business. 

On a deeper level if we say ‘this means I’m failure’, or ‘this means I’m not worthy’, or ‘this means I’m not good enough’, then this is going to produce a more negative state of mind. By shifting the meaning to something more empowering, such as ‘there is a lesson here’, or ‘this is a weakness I need to work on’, or ‘this will help me become better at what I do’, then it means we will look for ways to grow and strengthen ourselves. And as we grow and strengthen our self we are then able to have a stronger mindset. 

Only EVERYTHING has the meaning we give it. 

3. Communication

How we communicate is very important to the outcome that we want. It is not just the way we communicate with others such as staff members or family, it’s very important to understand how we communicate with ourselves. The things we say to ourselves when we are by ourselves are the most dangerous things we will ever hear. Because if we’re putting ourselves down, saying ‘I’m a failure’, or saying ‘I’m hopeless’, or saying ‘I am no good’, then this will lead to more self-doubt, low self-worth and low self-esteem. When we shift the internal dialogue again to empowering statements, then we build up our self-worth, and self-esteem, and self-confidence. And isn’t it true when we are confident we believe we can handle any situation? 

When we are speaking to others communication is also very important because the words we use directly are only responsible for 7% of how the communication is received, 38% of it is actually the tonality in which it said, and 55% is the physiology in which we hold ourselves. So if we are frustrated, angry or overwhelmed, our physiology reflects that, and the people we communicate with read our physiology more than the actual words we speak. If we are upbeat, or optimistic then our physiology reflects that and we will be more approachable and the conversation will be much more constructive. 

Applying the three key steps to a Healthy Mindset will mean when we are stressed (and we will all face some sort of stress) then we can handle the stress with ease.  

What can we do to lower and eliminate the stress that has been caused by not maintaining a healthy mindset?

Prevention is the best medicine – every day we should apply these three ‘Daily Reflection Questions’: What was most stressful today? How well did I handle it? What will I do differently next time? If we are caught up in a negative mindset and need to process a situation, ‘Ask Better Quality Questions’: What is working well? What am I not seeing here? What is another option here?

Written by Shane Bird

www.shanebird.com

 

 

Published in Training and Events in WIRED Issue 66 / September 2022 by Fencing Contractors NZ

Laurel Maclay talks about how to work smarter, not harder in your business.

When you first started up (or joined) your fencing business, you were probably looking forward to a lifestyle business, where you could enjoy the scenery, escape the rat race, and maybe even enjoy doing something together with your spouse if you are in business with them.

Fast forward to today, and the reality might look quite different.

• You are working more hours than ever
• There is a pile of work out there, and you are worried that if you don’t ‘make hay while the sun shines’ then the bubble will burst, and you will be financially strained
• Your customers are stressed (some can be particularly demanding) and you don’t like pushing back on their price or timeline expectations, after all, you pride yourself on your outstanding customer service.
• Sometimes you feel like an imposter, wondering if you really are cut out for running your own business, and that doesn’t feel very good.

What’s more, if you are in business with a family member, you might find that it is consuming you both day and night and there is simply no time to switch off.

So much for your previous rat race, suddenly the idea of working in a 9 to 5 job, where all you need to do is show up, is looking way more appealing.

And is there even an end in sight? Well, the answer is, unless you change the way you work, the end may very well be a health issue (particularly mental health), a crisis or sadly even a marriage break up.

So, what can you do about it? 

Here is a simple road map to help you feel more confident about your future and be able to switch off and have more down time.

STEP ONE

Work out exactly where you are right now

As human beings, we tend to focus on the negatives not the positives, or ‘deficit thinking’. It’s all about neuropsychology and being hard wired to keep a watch on threats that have long since stopped being a reality (it’s just our operating system hasn’t caught up). Here’s how to work out exactly where you are right now, in many situations you may discover things aren’t quite as bad as you think they are.

Stop and take a deep breath (this is probably the most important step; we need to slow down to speed up).    Think about the following areas and ask yourself questions which will provide you with an accurate assessment of where you are right now, here are some examples
	Finance
		Am I happy with what I am earning? Do my margins cover my expenses and give me enough profit? Do I have a pricing model that keeps me on track for doing profitable work?
	Workload
		How does my upcoming work look? What is my own workload like? Do I often work after hours? Do I have systems in place which save me time? Is there any type of work that I am particularly good at, or like? Is there any type of work which looks like it is becoming more in demand?
	People
		Are my fellow workers engaged? Productive? Do we have an open environment where we can talk freely? Do we all work well together? Can we stick to what we each are meant to be doing, and muck in when needed? Do I have access to experts who can help me? Eg admin, accounting, marketing, pricing, networking, coaching?
	Customer
		Do I know who my ‘ideal customer’ is, eg pays on time, doesn’t change their mind, understands realistic timeframes, pays me what I am worth? How many of my existing customers are ‘ideal’ or close to it? How many are high maintenance and may even cost me money?
	Self
		How is my work impacting my personal life? Do I have a simple way of winding down?

Once you have reflected on these areas, you will have a better idea of where you are. This might sound obvious, but time and time again, people don’t stop to assess their current situation. 

STEP TWO

Decide (and agree with any partner) where you want to be

What do you want out of your business? So many of us never stop to think about this. We know what sports team or Netflix series we like to watch, but we don’t know what we want out of something we are involved with, day in day out.

Have a look at each of the five areas above, and ask yourself, what would they ideally look like? In fact, better still, what would ‘satisfactory’ look like? Sometimes we are unrealistic with what we want, but there is nothing unrealistic about wanting a satisfactory work life blend where you can switch off from work regularly. Involve a partner if they work with you. For each area, write down a paragraph that captures your goals. As an example, for customers it might be “I have a select group of customers, who pay on time, pay me well and appreciate my value. They understand the reality of the current situation and trust that I am working as well as I can to deliver what they need in a professional and timely manner.”

STEP THREE

Work out a simple plan to get there and get some help to make it happen.

Once you have worked out what you want, the final step is so much easier. It’s when we continue to exist in a vicious cycle of survival and lack of clarity on direction and priorities that we don’t know what to do.

Here are three simple parts to a plan, which could not only help you feel less stressed, but also deliver a profitable and consistent return on your business,

1. Refine your business model
   Trying to be all things to all people is exhausting. Is there a type of customer you particularly work well with? How about specialising? Are there any customers who you could let go of?  A scary thought, but when we are selective and focused on who we work with, we have a better chance of delivering value and generating consistent profit.

2. Set up boundaries
   Your whole business is about boundaries. What about the boundaries you set yourself?  Identify (to start with) a couple of nights of the week where you won’t work after dinner. Plan a trip away, even a short and inexpensive one.
   If you work with your partner, agree with them when you can talk about work, and when you can’t. Review your agreements with your customers and see if you can introduce a bit more wiggle room around deadlines and pricing. They can be a lot more reasonable than we imagine, so often the challenge is that we never ask them!
   Quietly let go of any customers who are causing you too much stress and are quite simply a hassle in your life.
   Health boundaries are especially important. Be mindful of any sleep or eating patterns that drain your energy. Make sure you place priority on your personal activities, this goes a long way in making sure you get replenished and can stay on top of your game during your work hours.

3. Get help!
   Are you doing it all on your own? When anyone offers help, do you politely decline? As humans, we rely on each other way more than we realise, and trying to be independent all the time will not help you get what you want. Hiring an expert or business coach who can look at your business model or accounting system might sound expensive but could save you thousands in the long run.
   Are there jobs that you do as the business owner that a local contractor could do instead?
   And finally, do you have someone in your life who can hold you to account? Eg make sure you follow through on the commitments you have made on your plan?

By putting aside a few hours, where you can assess where you are, work out what good looks like and draft up a plan to focus on what next, the future may in fact look better than it did!  

Article supplied by Laurel McLay

www.laurelmclay.comPublished in Training & Events in WIRED Issue 66 / September 2022 by Fencing Contractors NZ

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The proposed Fencing Career Pathway and Qualification structure has been circulated with Fencing Contractors NZ Members for consultation.

Should you have any questions, comments or concerns regarding the structure, please contact any of the FCNZ Board members who would be happy to talk you through the proposed changes.

Careers & Training

Details

• Worker level qualification
• NZQA National Certificate in Fencing Level 3
• Apprenticeship – being explored
• Read about training here
• Explore the Northtec Courses here

FCANZ Certified Fencer

Details

• Individual qualification – Foreman level or business owner
• Annual Certificate
• Renewed annually

Requirements

• FCANZ current member and employed in the industry
• NZQA National Certificate in Fencing Level 4
• Employer verification confirming that the fencer is a foreman or capable of running a job

FCANZ Registered Fencing Contractor 

Details

• Business Entity qualification
• Subject to five-year renewal audit
• Not transferable on sale of the business
• Application process – refer to criteria list below

Requirements 

• FCANZ current member
• One of the ‘Principals’ of the business must be a Certified Fencer
• Three client testimonials (including contact details)
• Signed declaration and agreement to comply with the Registered Fencing Contractor programme, FCANZ Rules and Standards
• Professional Development: Attendance at two FCANZ Best Practice Days and one FCANZ Conference over five year period (evidence required for renewal)

Must also provide evidence of:
– A minimum of three years in business
– Current First Aid Certificate
– Employment Contracts
– Sub-contractor Contracts (if used)
– Public Liability Insurance (minimum $1 Million)
– Completed third-party Health & Safety prequalification  OR  working Health & Safety manual audited by an External Auditor

Master Fencer

Details

• Proposed – for future use
• FCANZ has permission from Fletcher Steel Limited New Zealand to use the trademark

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The first webinar in the Business Staples series was held on Tuesday 22 March and presented by Graeme Bratty of BizAssist. The insightful session provided practical tips and guidance for fencing contractors to improve their chances of getting paid.

Quotes and estimates are an essential but often under-utilised business tool that provide business owners and their customers with peace of mind. They are the template by which a job is completed – and go a long way to ensuring that the customer is happy that you delivered what they asked for, thereby drastically reducing your chances of not getting paid. Where cashflow is king, quotes are the royal advisors that get the work done!

What’s the difference?

The terms quotes and estimates are often used interchangeably but in actuality they are very different. They both hold a different legal definition which means that it is incredibly important that the right phrase and documentation are used.

The definitions as per NZ Government website consumerprotection.govt.nz are:

Estimate

An estimate is not a set price. An estimate is roughly how much the contractor thinks the job will cost, based on skill and past experience.

An estimate can be verbal or in writing – there’s no legal difference between a written or verbal estimate. It’s a best guess. The actual price may be more or less, but it is commonly expected that it should be within 10 to 15 percent of the final cost.

Quote

A quote is an offer to do a job for an exact price. Once you accept a quote, the contractor can’t charge you more than the agreed price unless you agree to extra work, or the scope of the job changes while it is underway. Legally, this is known as a variation to your contract.

Be very careful that you are using the correct wording for any information sent through about a potential job – especially if you use the word “quote” on what is essentially an “estimate”.

Why quote?

Always provide a quote on every job – whether it is for new or existing customers. Providing a quote to customers assures them that you are a reputable business and it helps protect you if the customer doesn’t pay. It not only locks in the scope of the work but it also gives you the opportunity to advise existing customers of any price increases and potential changes to terms of trade including payment terms.

Providing Quotes – best practice

1. Provide the quote in writing
According to the Commerce Commission, there is no distinction in the law between an oral or written quote or estimate. For your own protection providing a written quote allows you to go back to the customer to discuss the quote should any variations or questions arise. When talking with a customer on-site let them know that you’ll be sending them a written quote. This is known in many business circles as C.Y.A (cover your a%$&).

2. Include enough detail
While every job and customer need will differ, you should consider providing enough detail to be able
to discern when the scope has moved and a variation may be required, yet not so much that you are hamstrung by the commitment. Your quote may include:
• a breakdown of labour and material costs
• dates the work needs to be started or completed
• the type of contract (full, labour-only, or managed labour-only)
• deposit requirements

3. Specify the Scope of Works
When providing a quote to a customer, clarity around the wording of the scope of work is incredibly important as it forms a large part of the contract with the client. Should there be any queries (from either side) then the scope is the part of the document that is most valuable.

4. Include an expiry date
With supply chain issues and unprecedented price fluctuations it is well worth including an expiry date in your quote. This helps to manage the customer’s cost and timing expectations and provides you with the security of knowing that you won’t be present with a quote that is many years out of date. This “valid until” date is arbitrary so set it based on your business needs – many opt for 60 or 90 days.

5. Attach your Terms of Trade
Often called T’s & C’s or Terms of Engagement, Terms of trade are as important to your business as any other document. The Terms set out the key components or trading with your business such as payment terms, conditions, limitations, liabilities, obligations etc. They should also specify how variations might be handled. When terms are agreed upfront it is less likely there will be a dispute later on.

6. Get it accepted in writing
Ensure your customer accepts both the quote and your Terms of Trade in writing. This can be as formal as having them sign the document/s
and send them back to you or confirming by email that they accept both. An example of the email wording could be:

Please find attached the quote and terms of trade for the above work. You don’t need to countersign this, just confirm acceptance by return email. Do let me know if you have any questions.

How to handle variations

A variation is when the scope of work is altered from the original quote. This is most often due to the customer changing design and/or material requirements. Your terms of trade should cover how variations will be handled.

The simplest way to handle a variation is to carry a variation book with you. Take notes while you are with the customer and have them sign it straight away. Follow up with an email and use a tweaked version of the suggested email above. If you are not with the customer or don’t have a variation book, email the details of the variation to the customer including the time and cost implications. This could be in an email or a branded company document if you prefer. If possible, don’t begin work on the variation until it has been accepted in writing.

Quote Tools

There are a number of tools available for the creation of quotes. You will usually find quote templates built into accounting tools such as MYOB and Xero. Alternatively, a Word or Excel template can work just as well. Try to use the same tool for your quotes as you do for your invoices.

TIP: always send documentation through as a PDF not Word or Excel. Not sure how to do that? Save as PDF should be one of your print options.

When should I send an estimate?

Estimates are particularly useful as a “ball-park” figure for a job. They allow the customer to go away and finalise the details of their project before coming back to you. Often in the early phases of project planning, customers will look to an estimate to form their decision making. Estimates are much quicker to prepare than quotes due to the reduced level of information contained.

Communicate, communicate, communicate

The most fundamentally important behaviour for running a successful business is regular communication with your customers and suppliers. Sending quotes, terms of trade and variations are simply another form of communicating with your customer. Great communication in the early stages, and throughout the project means that potentially awkward conversations later are much less likely
to happen.

 

Read other business best-practice articles here: FCANZ Business Staples Articles

Watch the webinar here: FCANZ Business Staples Webinars

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© Fencing Contractors Association NZ (FCANZ)

The second of FCNZ’s Business Staples webinars was hosted by Stephen Conti of New Zealand Business Tools (NZBT) , and focused on the importance of Terms and Conditions for protecting your business.

Terms and Conditions of Trade, Terms of Trade or just ‘Ts & Cs’ (‘Terms and Conditions’ for the purpose of this article) are a critical part of any business and they form the basis of a healthy relationship between you and your customers. Having robust Terms and Conditions can save you a lot of money by addressing any potential future issues with new clients, from the start of your relationship.

When written specifically for your business they can help mitigate any problems or contentious areas, and also give you an opportunity to set payment terms in your favour, along with providing a clear recourse action, should non-payment occur.

Your Terms and Conditions is the contract document that sets out the terms and conditions that apply to the sale or supply of your goods or services. It is recommended you do not copy Terms and Conditions from another business as no two businesses are exactly the same and there is no guarantee that the original Terms and Conditions you might copy are actually effective.

Terms and Conditions can be crucial to your business as they greatly affect your contractual obligations, payment terms, debt collection, liability exposure and other fundamental factors which can influence whether your business succeeds or fails. Terms and Conditions are vital to any well managed business and a business without them is vulnerable to a range of problems. Add to your business’s competitive advantage by ensuring you have the right Terms of Trade for your business. It’s always better to be ahead of the pack.

Many small businesses do not have written Terms and Conditions, often instead relying on a handshake or a basic written quote. And if they do have Terms and Conditions, they (unknowingly) are often not legally enforceable because they are not effectively included in contracts with customers and therefore do not bind the customer. This unenforceability may only come to light when the business owner seeks to recover an overdue debt from a customer, but by then it’s too late.

The importance of getting your Terms and Conditions accepted

Many businesses work on the assumption that it is enough to include their Terms and Conditions on the back of an invoice or even just on their website. This approach does not allow you to prove that your customer agreed to your terms, especially if your terms are on the back of an invoice. In fact, the contract with your customer is normally deemed to have been formed long prior to an invoice being issued. The best most robust ways to get your terms accepted are to get your customer to:

• Sign a copy of the terms
• Click a box on your website when they place an order

When drafted correctly, Terms and Conditions:

• are legally binding
• outline the rights and obligations
(for you and your customers), relating to the sale of products or provision
of services
• set out what customers can expect when dealing with your business and how disputes will be dealt with
• specify how and when goods and services should be paid for, and what the consequences are if payment is not made in line with the contract
• allow you to undertake credit checks and assess the Credit Risk before you start work or issue an invoice
• allow you to register a financing statement on the Personal Properties Security Register (PPSR) to become a secured creditor
• help protect your business and may limit your liability
• recover or pass on any collection costs in the event an invoice is not paid on time and is referred to a collection agency
• allow you to collect and use your customers Personal Information

One of the easiest ways to get your Terms and Conditions accepted is to include them on the back of a customer information form, which you would give to a customer when you first meet them. This allows you to record all the information for quoting and/or billing purposes and allows you to get your Terms and Conditions accepted at the same time before any discussion about the price is started. You will always need this information and it is good practice to form this habit. Good habits make successful businesses.

Overcoming objections

Terms and Conditions are intended to be fair and reasonable to both parties, and it is not normal for a customer to object to signing them. In effect if your customer refuses to sign your Terms and Conditions then we strongly suggest you do not continue to do business with them. Having your Terms and Conditions signed is one of the most effective ways of ensuring that you get paid and for a customer to refuse to sign them is a good indication of how they will treat your invoice when work is completed. If a customer is uncertain about what they are signing, then seek feedback about what they are not happy with.

Payment terms

Setting appropriate payment terms is an important part of ensuring your business has sufficient cashflow to meet your obligations to staff, suppliers, and yourself. Many businesses default expecting payment on the 20th of the month after the invoice is issued. This does not need to be a default position and just by changing payment terms to; on completion, 7 days, 20 days, significant improvements to your cashflow can be made. Having a clause within your Terms and Conditions to specifically address this allows you the flexibility to set the payment terms and take advantage of the improved cashflow.

What if I do not issue invoices

Even if your customers pay for everything in advance you should still get your Terms and Conditions signed as this helps to resolve and disputes that may arise during a project. For example, if you are working on a boundary fence and require access from a neighboring property but this is not granted then the project may be delayed or cost more because alternative access needs to be arranged. Similarly if you intend to use equipment onsite but access is restricted due to weather conditions or other unplanned events. The responsibility for who has to provide access or obtain permission to access a site is just one area that can be easily addressed in the Terms and Conditions and though it might seem trivial, it can easily solve arguments that are presented to you later by a client.

Know your customers

Covid has caused a multitude of disruptions to all of our businesses, had a large impact on the economic environment. It is now more important than ever to evaluate your customer’s ability to pay before you start work and also to take advantage of the added security that being a secured creditor brings. These are both important elements that are dependent on
what has been included in your Terms and Conditions.

Drafted correctly they should allow you to undertake a range of credit checks and also to register a security on the Personal Property Securities Register (PPSR). These steps allow you to make informed decisions about a potential customer’s ability to pay and also allow you to further protect yourself by becoming a secured creditor which becomes important if your customer becomes insolvent. Sadly this is becoming more common and this trend is expected to continue for the next 18-24 months.

Getting paid should not be an arm wrestle. Following some basic steps before starting any work and if any variations or changes occur along the way, goes a long way to eliminating any disputes at the end of a job.

There is always the chance that once you have finished the work your client might admit they have no money to pay. Again some simple steps taken before work commences can identify this issue and also highlight any previous history of non-payment etc.

Establishing a Terms and Conditions document specifically for your business is a worthy investment to increase the likelihood of payment, to minimise and prevent bad debt, and to mitigate risk. More often than not, people or businesses who supply goods or services without Terms and Conditions regret not drafting one once unfortunate circumstances arise that eventually lead to disputes.

The best time to start using Terms and Conditions was when you started your business. The second best time is now.

Please feel free to contact New Zealand Business Tools if you’d like to review your Terms and Conditions to ensure your business is protected.

 

Article provided by

Stephen Conti

New Zealand Business Tools
nzbt.co.nz

 

Read other business best-practice articles here: FCANZ Business Staples Articles

Watch the webinar here: FCANZ Business Staples Webinars

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© Fencing Contractors Association NZ (FCANZ)