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When succession planning is about more than just family

For the multiple generations of family involved in Barakat Contractors Ltd, succession planning is about much more than that. It’s also about up-skilling the team, so they have an opportunity to progress in their own fencing careers if they choose to.

A natural progression

Henry Barakat started fencing at 16 while working on farms, so it seems only natural that he would set up his own fencing business. Now, more than 40 years later there are 3 generations of the Barakat family involved – with the next generation already playing with tools of the trade.

In 1979, Henry’s son Dale joined the business and spent many years working with his father as an equal business owner.

“We’ve worked together for 40 years and never had a fight” says Dale, “Because we know when to walk away, think about the issue, and then we’ll come back and talk it through”.

It’s this level-headed approach to challenges that has seen Barakat Contractors continue to prosper.

The next generation

Third-generation family member Carl joined the business as a 20% shareholder in 2006. He then bought a further 30% in 2018. Carl first officially started on the tools when he was at school – though (like his own sons) he’d been playing with spades and other fencing tools for years. “As a 16 year old school leaver I didn’t have a plan to join the business, so I helped a family friend do some roofing. I did that for a week before Dad (Dale) rang me and said I need you back and this is when I joined the business full time and I haven’t left since”

“Some of our foremen/supervisors are older than me but even though I was family to the bosses, I earned their respect by starting at the bottom and working my way up.” says Carl. “They know that I can talk the talk because I know how to be on the tools – and to this day I still am”

Carl goes on to say that succession planning is not just about the family but the people who work for the business too. “We hire a lot of people straight from school and help them learn the trade. They’re not just a number. They can come and talk to any one of us and we will hear them out. We often get told that people love working for us because we are good to work for and it’s not only a job we offer but the little things we help with out of hours.”

Crossing ‘t’s and dotting ‘i’s

When it came time for Carl to join the business, the family contacted their accountant who talked them through the process and how best to structure the business – not only for the new structure but in consideration for how Henry might exit the business at a later date. “So that the process was fair and transparent, the business shares were appraised at market value and that is what we paid” says Emma Barakat, Carl’s wife.

Following proper process is part of the Barakat way of business. Dale says that it is the “small things” that really matter such as returning voicemails, following up on emails, and fair rates. They also don’t tend to pick and choose their jobs. “We get asked ‘can you do it” a lot so we look into how to do it and get it done” Dale adds.

“We started off by fencing in the winter to keep our shearing crews employed, and it grew from there” says Henry. Now rural fencing makes up about 30% of the Barakat projects, predominantly in the Waikato region. The remaining 70% of the work is in security fencing, with the team specializing in fences for high-security facilities such as Corrections, power generation and commercial sites.

“There’s a lot of paperwork and hoops to jump through for some of those big jobs but it is worth it in the end” says Carl

40+ Years of favourite projects

With so many years spent fencing there have been many memorable projects.

For Henry it was building yards for 1600 head of cattle at Lochinver Station. “We designed and built those yards – they could fit 4 truck & trailer units at the same time. The cattle were for export and needed to be moved out of the yards quickly, so they had to be just right.”

Dale has fond memories of working on Waiheke Island. They were supposed to be there for 10 days only but ended up having Barakat crews on the island off and on for over 12 years. During this time they completed many different types of work including 100+ km of conventional fencing, 10+ km of hand dug bush roadside fencing, and installation of 100-acres of vineyard post and wire grape vine runs.

Installing high-security fencing at Rolleston and Tongariro prisons has been a firm favourite for Carl. “You get to meet great contractors and was a nice environment to work in.”
What’s next for the Barakat family and crew? Business as usual completing agricultural and security fencing around the country and running after the 4th generation of Barakat children plus much, much more.

Barakat Contractors are always on the lookout for new people to join the team.

 

Article written by Jaime Bigwood