FROM NZCB —
Jason McClintock Group Technical Manager
Let’s talk about goodwill During my 10+ years at New Zealand Certified Builders, I’ve talked to a lot about good sorts. You know who you are – you go to extra lengths for your clients, throwing in those extras without expecting payment for them. To sum it up; you put a heap of goodwill into your client’s homes. I’ve heard it all, from pouring paths for free to picking up the client’s kids for soccer each Saturday.
No more freebies I’m going to ask you to cut it out, stop the goodwill, especially if it’s your time and at your cost. Tell your homeowner you can do it as a variation, after all, that’s what they signed up for when they penned their signature on the building contract. Five years ago, I wouldn’t have given such a harsh recommendation, however, times have changed and your clients are now a different beast. I frequently talk to builders who have been kicked in the guts on this and they discover it when their client has already beaten them up by not making payment, is fabricating issues, or simply not accepting quality that is within industry-accepted tolerances. Save yourself the pain.
Claims made by clients When I talk to builders about the type of claims made by clients, the subject of goodwill comes up frequently. Goodwill means a lot to most of them and they see it as a part of their
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integrity. However, clients are very quick to dismiss any level of goodwill when they are looking for some sort of compensation or monetary discount. Instead, they will fall back on what’s in black and white when it comes to questions regarding roles and responsibilities. The Building Act, Consumer Regulations, and building contracts mention nothing about goodwill, even when it might be considered of some help to the builder’s position when a client is coming down heavy.
Know when to put on your business hat Many of our members have very good working relationships with their clients, with referral work a validation of this. The common thread with these builders is they know when to put their business hat on and when to put their ‘mates’ hat on. By ensuring the extras are captured as variation, both parties now understand their boundaries. This stops clients’ expectations of freebies or thinking the builder was so generous they do not need to pay the last invoice. Keep those string lines tight, bye for now.
