14 minute read
Member Spotlight
Left to Right - Rhett, Max, Doug, and Elliot
Keeping it in the Family
The Secret Ingredient to a Successful Plumbing Business
For the Lewis family in Roma, there is no secret to success when running a family-built, small business. The days are long, the admin work can be daunting, and the hours spent on job sites in the middle of nowhere are increasing. But to them, the time spent together as a family and the memories created far outweigh any of the negatives. MPAQ’s Corbie O’Brien visited the family in Roma to discuss their thriving plumbing business.
I was fortunate enough to sit down with Max, Belinda, and their three sons Doug, Rhett, and Elliot as MPAQ highlights the important roles fathers play in our lives as we celebrate Father’s Day this September.
The Lewis family are the proud owners of Roma Plumbing, a small business located in Roma, Queensland, a 500km drive west of Brisbane. Having completed his apprenticeship with the previous owners of Roma Plumbing, eldest son Doug runs the family business next to his younger brothers Rhett and Elliot, all qualified plumbers and gas fitters. .
When the family bought Roma Plumbing, Doug was just 21, and Max and Belinda admitted that they worried they might have jumped into the deep end a little.
“We spoke about it in the beginning, that we are all in this together, and we must get along to make this business work; otherwise, it would selfdestruct. Nothing could really come between us,” said Belinda.
As the boys began their apprenticeships, it was clear that Roma Plumbing was going thrive, harnessing the power of the boys’ relationships, Max’s knowledge and skills, and Belinda’s determination to succeed.
Family Life
When the boys were little, Max worked on the Wild Dog Fence in regional Queensland, and Belinda owned a successful beauty therapy business. Reflecting on their time growing up, the boys weren’t affected by Max’s absence when he spent long periods of time away on site, noting that they understood his hard work was a sacrifice he made for the family.
“When it was school holidays, dad used to take us out to where he worked, so we got to see huge machines and the things he worked on,” said Rhett. “It was pretty cool.”
Max would also oversee the show and tell at school when his sons were little. “I remember this one time; he bought a snake home for Elliot’s grade two show and tell. We put it in a jar, so he could safely transport it, and he walked into the front steps of the classroom, dropped it, and it smashed everywhere,” Belinda said.
But what’s it like working with their dad now?
“He’s always there to give us advice, or just a helping hand if we need. We’re pretty lucky to have him,” said Doug.
Every member in the Lewis family works in some way for Roma Plumbing, even the family dog Buzz. Coined “Buzz the Plumber Dog”, he has earned his stripes in the business as he drives around in the front seat with Max delivering tools and supplies when needed.
“An apprentice and I were working on a low set house and Buzz would run tools to me when we were under the house. It’s saved my knees, that’s for sure,” Elliot said.
Working with Your Family
As Roma Plumbing grows, so do the size of the jobs and the distance required to travel to them. When Doug, Rhett, and Elliot have found themselves in neighboring towns without the critical tools or parts required to get the job done, they have leaned on their dad for assistance.
“I don’t charge them a call out fee whenever they ring me,” joked Max. “I probably should: one beer, two beers, etcetera per minute. For the bigger jobs, I’ll make them buy the case.”
“We have a family rule: if someone does something really, really stupid, we make that person buy a case of beer. So, we call sit around and laugh at it at the end of the day,” said Belinda.
“Max taught the boys everything they needed to know about Workplace Health and Safety, because he had done it for years on the oil rigs. He brought his knowledge over from his previous job and helped instill them in the business from day one, so that has been so helpful with keeping the boys and their colleagues safe.”
After spending so much time away from home for work previously, Max cherishes the time he gets to spend with his sons now through their business.
“Years ago, I never thought I’d be working with my guys. I was hardly ever home, and the opportunity came to purchase the business, so we just jumped and never looked back.”
“I don’t have to go to job sites with them as much anymore, probably because I can’t help myself, and I’ll probably say something… I’m probably better off not going,” said Max with a laugh.
“I love seeing them succeeding. When they were little, I never thought they were going to be grown up one day, making their own decisions, and doing their own work. It’s pretty amazing actually, to think where they started to where they are now,” he said. “If someone told me this is how your life would turn out, I wouldn’t believe them. I’m so lucky, and so proud of my boys.”
Working in Regional Queensland
With the decreasing vacancy in rentals in the southwest region, Roma Plumbing has a strong relationship with local real estate agents in town, with Elliot dealing mostly with the maintenance of rentals.
“Just this year we’ve completed nearly five brand new builds in town, which is pretty good for out here considering we’re only a town of 6,000 people,” said Doug.
“We didn’t have any issues through COVID-19. I mean, out here we were lucky in the fact we didn’t really have lockdowns or huge restrictions. But we had a huge amount of people at home, which made us so much busier,” said Doug.
“More people were home noticing all the things wrong with their house or things they wanted to change, so we just got busier and busier” Elliot replied.
Since its start in 2011, Roma Plumbing has grown exponentially, hiring apprentices to help manage the ever-growing workload. However, the added stress that comes with the growth caught up to the team.
“We ran into some trouble recently, and with being a small business located in regional Queensland, there’s not a whole lot of avenues for us to lean on. I rang Master Plumbers’, and they were great; they put us in touch with the support services we needed. We spoke with the technical team, who told us to call them if we needed anything throughout the process, or just for a chat if we needed to rant. I was blown away—it was like a best friend offering support. It was fantastic,” said Belinda.
“Being in a small town, we can’t exactly talk about it much. But to talk confidentially to a friendly person on the other end, is just mickeymouse,” Belinda said. “Sometimes it can take weeks to get a reply from the Queensland Building Construction Commission (QBCC), so it’s great to know Master Plumbers’ are always there whenever you need them.”
Roma Plumbing is a successful family business. But more than that, it’s an example of three sons taking the lead with the examples inherited from their parents, and two parents offering the support, knowledge, and encouragement to help their sons on their way. Buying a plumbing business has meant that Max has been able to spend more time with his sons, and Doug, Rhett, and Elliot have been able to lean on their dad for support, it may just cost them a beer or two.
Written by Corbie O’Brien – MPAQ Communications Assistant
Buzz the Plumber Dog
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PHASE 2A OF QUEENSLAND’S PROJECT TRUST REGIME ON THE HORIZON
On 1 July 2021, the next phase of the implementation of the requirement for head contractors to establish Project Trust Accounts (PTAs) and Retention Trust Accounts (RTAs) on Queensland projects commenced.
In 2020, the Queensland Government released the set of reforms to laws applying to the building and construction industry in Queensland, including the implementation of PTAs. Phase 1 of the PTA rollout is currently in effect and commenced on 1 March 2021.
The commencement of the new phase will require head contractors to establish a PTA on a broader range of State Government, hospital, and health service than before by removing the previous $10 million valuation ceiling, making the scheme now apply to larger projects.
Over these five major phases, the framework progressively expands to capture more projects and contractors. PTAs will soon be required on most private and public sector commercial construction projects in Queensland valued at over $1 million.
Who is Required to Establish Trusts?
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For Project Trust accounts, the contracted party for the contract that required the Project Trust is responsible for establishing and maintaining the trust (generally the Head Contractor). They are the trustee. For Retention Trust accounts, the contracting party who is withholding retentions from the contracted party’s/parties’ payments is responsible for establishing and maintaining the trust. They are the trustee. Initially, the trustee will, in most cases, be the head contractor. However, as Retention Trusts are progressively expanded to cover more projects, the trustees may also be the principal or a subcontractor that holds cash þ retentions from its sub-subcontractors. Fully equipped þ Potential Penalties 20% less ute space than trolley mounts þ There are many penalties specified throughout the legislation for non- Class A ... no operator certication requiredcompliance with various aspects of the trust’s regime ranging from small fines to large fines or imprisonment.
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Statutory Trust Penalties
• 60 offences, with 21 carrying jail time • Maximum total of 11,840 penalty units • Maximum total of 29 years in jail • $1,580,048 in maximum fines
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There will be other parties who will genuinely struggle to come to terms with their new responsibilities. AS/NZS 4233.01
If you haven’t already, now is a critical time to be aware of the commencement of the new phase of the regime and consider how it will impact your current financial and project administration procedures.
If you need any assistance in understanding your obligations under the new regime, please contact Cornwalls. We have considerable knowledge of Queensland’s legislative landscape and can assist with any concerns you may have. If you have any questions about this article, please get in BUY NOW!
touch with Cornwalls Building & Construction team by phoning 07 3223 5900 or emailing brisbane@cornwallsqld.com.au. Disclaimer
This information and the contents of this publication, current as at the date of publication, is general in nature to offer assistance to Cornwalls’ clients, prospective clients and stakeholders, and is for reference purposes only. It does not constitute legal or financial advice. If you are concerned about any topic covered, we recommend that you seek your own specific legal and financial advice before taking any action.
Article written by Ian Heathwood, Partner at Cornwalls.Australian Pump Industries (02) 8865 3500
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COVID-19 AND CONTRACTS IN THE BUILDING AND CONSTRUCTION INDUSTRY
To adapt to the evolving COVID-19 landscape, business owners should put in place plans, processes, and strategies that effectively deal with the challenges that it presents.
This article distils the immediate challenges faced by the plumbing industry and probes into measures that business owners can harness to weather the ongoing impacts of COVID-19.
In the short term, trades in the construction industry are facing supply chain disruptions and issues with increased material costs. Often supply chain disruptions result in project delays and additional costs.
Supply chain shortages and bottlenecks are being caused by:1 • A global surge in demand for building materials; • A local surge in new home builds and renovations following the Homebuilder grant, a spike in interstate migration, relaxed lending rules with low interest rates, and early access to superannuation; and • Global supply chain disruptions due to COVID-19.
Plumbing companies have also absorbed significant increases in material costs, which ultimately affects their bottom line and profitability.
We will now consider how you can effectively protect your business from the adverse impacts of supply chain disruptions and increases in material costs.
Safeguarding Your Business from Supply Chain Disruptions
Having a greater understanding of your supply chain will enable you to respond to supply chain issues well before they materially impact a project.
Before making any significant changes, a business should first understand where any vulnerabilities in its supply chain may lie. This can be achieved by conducting a supply chain vulnerability audit across the whole business.
Once you have a good understanding of your business’s supply chain, you can consider implementing processes and controls to minimise COVID-19 risks. For your example, if you know that a particular material has been subject to long delays, you might work with project managers to factor these constraints and time delays into schedules or develop contractual clauses that allow for time delays in sourcing such materials without penalty.
Having open lines of communication across your business, and with relevant stakeholders, can also help to manage supply chain risks. For example, if you have good relationships with your suppliers, you may pre-order materials or get them to reserve materials for you in advance.
You may also want to consider enhancing the flexibility of your supply chain so that it can adapt to the risks and challenges you have identified.
If you are experiencing delays with existing suppliers, for example, you may benefit from reviewing your existing Terms and Conditions with the suppliers and considering your right to terminate contracts where the supply of materials is delayed and sourcing from elsewhere. Similarly, you can amend your contracts to ensure that you can obtain an extension of time in the event of delays or disruptions to supplies of trades or building materials.
Protecting Your Profits from Price Increases
Some practical legal tips to protect your business from price increases and supply chain disruptions include: • Seeking legal advice in relation to your existing terms and conditions and any potential disputes before they arise – prevention is better than a cure; and • before you sign a contract, check that you can deliver in light of the impacts of COVID-19. Consider reviewing your standard form contracts and including cost escalation and extension of time clauses. Cost escalation clauses and extension of time clauses accommodate increased material costs during a pandemic in the overall pricing of a project and allow you to claim an extension of time due to the impacts of the pandemic.
In summary, whilst the COVID-19 landscape has created a number of uncertainties in the plumbing industry, you can effectively navigate the challenges of the pandemic by making a few changes to your business model. Some of the strategies you can implement to protect your business include seeking legal advice to ensure that your contracts are drafted to effectively respond to the challenges of COVID-19 so that your business does not bleed its profits.
If you would like to discuss how best to approach any of the issues identified above, please contact one of our experts by email at info@rcrlaw.com.au or by telephone on 07 3009 8432 to engage in an obligation-free discussion.
