Running a Successful Construction Company

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    C 05                         BSA’S TIPS FOR RUNNING A
BRISBANE                           SUCCESSFUL BUSINESS
299 Montague Rd
West End QLD 4101
                       BSA staff get the opportunity to liaise with many licensees operating in the
                       Queensland building and construction industry and have observed varying
                       levels of business success. BSA has these tips to make licensees aware of good
GPO Box 5099
                       business strategies that may help them achieve greater business success.
Brisbane QLD 4001
                       Form positive relationships with clients
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                       Our licensees claim client satisfaction and positive relationships with the
CAIRNS                 consumer seem to be the two main keys for business success. A good gauge
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                       of client satisfaction is referrals to family and friends; if your past clients are
                       satisfied with your work and professionalism you will find you get a lot of work
GOLD COAST             through referrals.
Facsimile 5575 7666    Successful businesspeople form a positive relationship with their clients and
                       keep them informed during the construction process, but our most successful
                       licensees form a relationship with their clients well before signing a contract
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                       and continue on after the hand over and maintenance period.
ROCKHAMPTON            It is a good idea to meet with the consumer regularly during the construction
Facsimile 4926 1377    process and inspections should be arranged at the completion of the various
                       building stages. Often the owner will have concerns during the various stages
                       of construction and by having the inspection at the completion of the stage any
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                       concerns that remain can be addressed.
                       Maintain appropriate paperwork
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                    Maintaining appropriate paperwork in line with all the requirements of the
TOOWOOMBA           Domestic Building Contracts Act 2000 (DBCA) also assists in running a
Facsimile 4638 1917 successful business. Successful licensees will discuss, at the quote stage, the full
                    details of work the client requires and try to give the client a fixed price. They
TOWNSVILLE          will also ensure they have an appropriate contract in place for the work they
Facsimile 4725 3401 will perform and that any variations to the contract are agreed upon by both
                    themselves and their client and are recorded in writing. They also make sure
TELEPHONE STATEWIDE there is a payment schedule, contract information statement and cooling off
1300 BSA BSA        period in place.
                       Good businesspeople will take the time to explain the paperwork to their
WEBSITE                client. The owner should also be given a copy of the approved plans as part     of the contract and should receive copies of all inspection certificates as they
                       become available.
Build Better
Communicate effectively
In line with keeping communication open and positive, the most successful licensees give their
clients information first-hand and allow the clients to talk about the building project with the on-site
supervisor. This means any concerns the consumer or builder have can be discussed openly, thus
reducing the potential for disputes to occur further down the track.
The successful people will also keep the lines of communication within the company honest, open
and positive. BSA commonly receives complaints from owners who say they are being kept in the
dark about the construction process on their dwelling.

Remain realistic
When successful businesspeople make a promise to a client, they keep it. They are mindful, however,
not to give the client a higher expectation on a project than they can deliver. For example, builders
will sometimes promise high quality work will be completed by the completion date. Owners often
interpret this to mean perfect quality work that will be completed on time no matter what - even if it
has been raining steadily for the last two weeks of the contract. Misunderstandings can leave an
owner disappointed and unhappy.
To run a successful business, you should always be realistic when quoting for jobs and drawing up
timelines. During building booms, successful business people take into account shortages in qualified
tradespeople and allowed for this in their construction timelines. Some may even close their books to
new work when they discover they can not start projects for over 12 months.

Surround yourself with good staff
Good businesspeople realise they are only as good as the staff they employ and will surround
themselves with competent, committed, professional people who share the company ideals. Our most
successful licensees advise good staff are found through a comprehensive interview process which
includes an extensive referee check. Job satisfaction and a healthy salary help to retain good staff.

Monitor company finances closely
Keeping a close eye on company finances is also a factor that makes some licensees a cut above
the rest. Watch your cost control and cash flow. Some builders believe their business is going well
because their staff are signing up new contracts and the work under construction is on time. Upon
close inspection they find they have not allowed sufficiently for price increases, overheads etc. This
reduces their profit margin which can lead to problems with cash flow down the track.

Comply with current standards and legislation
It is essential to keep up with legislation and Australian Standards and ensure that you and your
staff comply with all necessary requirements. BSA runs educational shows and seminars across
Queensland that can help keep you up-to-date with new legislation, standards and regulations.
Contact BSA for more information.

Further information
If you would like information on any building related issue, please contact BSA on 1300 BSA BSA or

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