FROM NZCB —
Shane Ririnui Technical and Education Manager
The importance of managing clients from start to finish It has been three months since I started my new role as New Zealand Certified Builders (NZCB) Technical & Education Manager, and I have already been exposed to challenging homeowner complaints. As I enquire into the complaints, I am finding a common denominator; management of the client and their expectations. It’s best practice for the builder to manage the client and their expectations from first engagement through to the end of the 10-year implied warranties which is stipulated under the Building Act. I am sure our membership takes this approach, but here are some helpful tips to keep it front of mind.
Before the build begins: • Make sure you provide the prescribed compliance documentation to the client giving them full disclosure of who you are, your business details, and what insurances and guarantees you’re offering. • Present the client with a building contract and go through the contract in detail. Ensure the client fully understands the builder and homeowners’ obligations under the contract, how you came to the estimate, labour rates, markups and how they will be applied, payment claims and when they will be submitted, how variations will be handled, and last but not least; defects and how they will be addressed. • A great discussion to have during this time is how you and your client will communicate throughout the job. Agree whether it will be only via email to ensure a paper trail, phone calls followed by an email, or an arrangement for the client to visit the site every fortnight and discuss progress and any concerns. Making this clear is extremely helpful in managing the client’s demands and expectations.
If at anytime the client has concerns, don’t ignore them hoping they will go away, discuss them, and try to resolve them.
• If a variation presents itself, the best practice is to advise the client straight away, present them with the estimate, and have them approve the variation. This ensures the client doesn’t question the additional cost when you submit the variation in your next payment claim. • If at anytime the client has concerns, don’t ignore them hoping they will go away, discuss them, and try to resolve them. If you need any guidance, please contact the NZCB National Support Office (NSO) on 0800 237 843.
Doing the extra legwork is worth the time and energy it takes because successfully managing your client and their expectations may result in client advocacy and referrals. Once the job is complete: • Hand over post-contract compliance documentation, i.e. product maintenance schedules, warranties, and guarantees. • Address any defects raised by the homeowner in the 12-month defects period. If you are not the negligent party, still help the client resolve the defects because it is your responsibility under the Building Act to do so if the work was part of the contract. • If there are defects raised by the homeowner after the 12-month defects period, still address these with the client. If required, help the client if the defective work is not your doing but was part of the contract.
During the build: • Ensure you are serving valid payment claims as per the contract requirements. If you are unsure if your payment claims/invoices are valid, jump into the members’ only Toolshed (under compliance/during the build/tax invoices/ payment claims), where you can read the nine criteria for a valid payment claim. There is also a video from one of Martelli McKegg’s builders breakfast events by Construction Law expert Geoff Hardy, called “Contract Exits & Payment Claims”, which explains this in more detail.
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Doing the extra legwork is worth the time and energy it takes because successfully managing your client and their expectations may result in client advocacy and referrals. What if you do all of this and the client is still being difficult? Check in with NSO on 0800 237 843 and the various helplines available to assist you. Don’t hesitate to pick up the phone because if there is anything we can do to help, we will. Nga mihi.
