6 minute read
The Australian and New Zealand builders’ scene
Over the last few months, I have been to Australia a number of times and worked with a number of Australian builders, as well as working with our New Zealand builders in the technology and business areas.
What I have observed has been really interesting and, although there are some similarities in the challenges faced, there are also some interesting differences. Now, before I get too far into this article, let me qualify by saying I am making general observations and it doesn’t mean every builder fits into these generalisations. However, there may be some useful lessons in this for you.
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When I was growing up, my dad used to say when it comes to sport and competition with Australia, always back New Zealand in the rugby and Australia in the cricket. Maybe it’s not so true these days, with New Zealand doing well in both. The point, however, is that each side of the Tasman has strengths we can learn from. What are some of the key differences I have picked up in my travels this year?
Estimating/Quoting
As a builder in New Zealand, you can drop your plans in to your merchant, and they will have a takeoff priced for you. This doesn’t happen in Australia, and the builder must sort out their own takeoff solution. In fact, the merchants are often reluctant to give the builder a price file. Australian builders either do a takeoff themselves or they find a QS to do it for them. This has proved a frustration for the Australian builders I have talked to, and we have found the provision of a takeoff service feeding direct into our BuildaPrice software is a concept they really like. (We provide this service in New Zealand as well.)
This leads to one of the first major points I have noticed with Australian builders: that they are looking for ways to improve their productivity and they are happy to pay for it. Anything that can save time through automating their business is seriously looked at. In Australia (like New Zealand), there is a serious shortage of carpenters, and Australian builder owners will pay for solutions that lead to improved productivity from the staff they have. This desire is so strong that, nine times out of 10, when they look at our BuildaPrice software, they see the productivity increase they want, and price becomes a secondary consideration. I see several New Zealand builders with this productivity mentality as well (and it is growing), but I sense there is still a gap to be closed between the two countries.
Admin/Bookkeeping
One of the most popular features in our software with Australian builders (which surprised me) was our invoice processing service (IPS). The Australian builders are jumping on this as they see their supplier invoices going through BuildaPrice into Xero electronically, without any paperwork or manual invoice input required. It is another example of providing a productivity improvement in an area that currently involves time-consuming manual processes.
I sat between two builders in Brisbane recently, who were both looking for a bookkeeping solution so they could focus their time on the business and family. With BuildaPrice, we are seeing more customers picking up the bookkeeping services from our licensees, on both sides of the ditch.
This is one area where the ground is common. Australian and New Zealand builders want ways to get their evenings and weekends back. Builders in both countries want their ‘family time’ to be for family and not for doing paperwork. This is one of our fundamental goals at BuildaPrice: to provide the single solution that gives time back to builder’s families.
This was one of my major lessons from Australia. Australian builders are not allowed to do Cost-Plus contracts, and they couldn’t believe the amount of these we do in New Zealand. This is one of the reasons several Australian building companies have been caught out, as prices rise, and they are caught in the middle without the right cost escalation clauses in place. We are now starting to see the growth of Cost-Plus in Australia, as builders test the process (Government and Banks) and look to provide more Cost-Plus contracts. There is pressure to look at alternative methods for contracts, as high inflation hits Australia at similar levels to New Zealand.
Cost-Plus contracts are one of the many strengths of the BuildaPrice platform. When we show an Australian builder this, they are quick to utilise the tools available to them. New Zealand builders are already working well in this area. There is a place for both Cost-Plus and Fixed Price contracts; you just need the right systems around both.
Health and Safety
This is a key focus for the construction industry and its regulators. This is an area where Australia leads New Zealand, in focus and activity, with Australian builders clearly understanding their personal liability. New Zealand builders are raising their game but, at present, I perceive a gap between the countries process and focus. We expect to see this gap close over the next couple of years. One key to helping this process is to incorporate Health and Safety into your standard operating system. That way, when you establish your projects, data flows through to your task allocation, responsibilities, and customer interaction, to protect Health and Safety for all parties, remembering that as the director your processes protect you from liability and prosecution.
At the time of printing, BuildaPrice will have released its Health and Safety module as part of its single solution for builders. You will now be able to incorporate your tasks, from pricing right through to site, ensuring compliant Health and Safety processes and reporting. Profit
In both Australia and New Zealand, there is a shortage of builders. This situation is not going to get better in the short term. With that in mind, there should be no reason why a building company owner shouldn’t make a reasonable return for the management and delivery of their projects. In both countries the builder is responsible for the site, coordination, project management, risk, and delivery, yet the builder doesn’t necessarily see a return for this. Often, the sub trades do better from the project – without the same levels of pain. The keys to ensuring a good profit include having good processes and procedures, knowing where your profit is made, knowing which jobs you should be doing, what to spend your time on, and what to hand over to others.
In summary, Australian and New Zealand builders are very similar, but there are some differences that both sides of the Tasman can learn from. The key common point is the shortage of time, and how builders can change their business and processes to utilise their time in the most efficient way.
At BuildaPrice we understand these points, and our software is designed to improve your life in these areas. Book a demo at www.buildapricegroup.com.
Darren Wallbank, Builda Price. Builda Price is a NZCB National Partner and was developed to help builders quickly and accurately price jobs along with tracking their progress and costs live on the job. Quoting, Time-sheeting, Job Tracking, bill processing and Project Management (shortly) on mobile and desktop. For more information visit www.buildapricegroup.com.
