Comparing Policies
Public Liability
The Next Step A Guide to Dealing with
UNCERTAINTY What path to take...
Financial reporting to the QBCC The secret to making it a breeze!
www.aussiepaintersnetwork.com.au
CONTRIBUTORS • Angela Smith
From the Editor
• Anthony Igra
Hey Everyone,
• Daniel Wurm
Welcome to the 90th edition of the Aussie Painting Contractor Magazine.
• Elizabeth Shi • Jim Baker • Leo Babauta • Monroe Porter • Raymond Loveridge • Robert Bauman • Sandra Price
EDITOR Nigel Gorman EXECUTIVE EDITOR Caroline Miall
I hope that 2020 has started with a bang. And those that have been affected by the natural disasters in the last couple of months are all doing ok. We are here to assist you if you are needing help. Call us if you need. From all reports work looks to be on the up and up with a lot of painters talking about having work booked in for a month or more. This is great to hear considering this time of year is traditionally very slow. In February we will be traveling around Queensland, training apprentices and catching up with as many of you as we can. Check out where we will be or contact us to arrange a catch up. Our training schedule is on page 2. From many discussions with painting business owners there are 2 things this year that I think most businesses need to focus on if they aren’t already. 1. Understanding your break-even rate. 2. If you are winning more than 40% of the work you quote, are you too cheap? These are just for you to consider. Feel free to contact us if you are wanting some help in these areas. There are only a couple of days left to sign the Qld Home Warranty Insurance Scheme Petition to have painting removed from the Scheme. Sign it before its too late. https://www.parliament.qld.gov. au/work-of-assembly/petitions/petition-details?id=3216
'Till next time, Happy Painting!!
GRAPHIC DESIGNER J. Anne Delgado
Nigel Gorman
nigel@aussiepaintersnetwork.com.au
07 3555 8010
Contents 06
12 15 18
Painting Australia in the 2020’s Those who think ahead and adopt new technology and ideas are better
29
The secret to making Financial Reporting to the QBCC a breeze!
33
PETITION TO HAVE PAINTING REMOVED
34
Avoiding Employee Risk
37
Exact steps to win Exact steps to win more quotes as a painter
40
Tips for updating your business plan
42
Registration in Victoria for PAINTERS & DECORATORS
46
Industry Idiots
47
Important Contacts
One Out of Ten Contractors Face Internal Theft, Will You Be One of Them?
Comparing Public Liability Policies Check the exclusions to see if there is a good reason for price difference
Australian building codes don’t expect houses to be fire-proof THE NEXT STEP Generally go through life taking the exact same steps
21
What employers need to know: the legal risk of asking staff to work in smokey air
24
A Guide to Dealing with Uncertainty What path to take...
Opinions and viewpoints expressed in the Aussie Painting Contractor Magazine do not necessarily represent those of the editor, staff or publisher or any Aussie Painters Network’s staff or related parties. The publisher, Aussie Painters Network and the Aussie Painting Contractor Magazine personnel are not liable for any mistake, misprint or omission. Information contained in the Aussie Painting Contractor Magazine is intended to inform and illustrate and should not be taken as financial, legal or accounting advice. You should seek professional advice before making business related decisions. We are not liable for any losses you may incur directly or indirectly as a result of reading Aussie Painting Contractor Magazine. Reproduction of any material or contents of the magazine without written permission from the publisher is strictly prohibited.
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Painting Australia in the 2020’S
As we approach the new decade, it’s time to reflect on how the economy, government policy, environmental issues, new technology and trends will affect our industry. Although none of us has a crystal ball, (and crystal balls don’t actually work, by the way), we can use current trends and policies to predict the major impacts on our industry. It’s something smart business people do all the time, and its what makes us leaders in the industry. In 2007 when I first started talking to painters about VOCs in paint, most painters thought I was some kind of tree-hugging hippy. But only ten years later Low-VOC paints dominate the industry, and they are specified on most large projects. When I spoke to painters about saving water in 2007, a lot of painters thought that I was exaggerating the need to become sustainable. But fast-forward to 2019 and large parts of Australia have been under severe drought for several years and most painters have used waste-water recycling units. In 2013 when the National Painting and Decorating Institute launched e-learning for the painting industry, the MPAV published a press release saying that e-learning could never be used for training painters. By 2019, almost 80% of all apprentices in Queensland are studying on-line using our e-learning system, over 1500 painters across Australia and New Zealand have enroled in an on-line course, and TAFEs across the country are rolling out e-learning for all apprentices.
across Australia have publicly said that these were directly caused by climate change. How will this impact our industry? One way is through increased demand for intumescent coatings, or ‘bush-fire retardant coatings’. After the devastating 2009 fires in Victoria the government introduced new regulations for houses and buildings in bush-fire risk zones. These regulations mean that new buildings built in those zones must meet new Bushfire Residential Building Standards. One method that building designers can use to improve a building’s resistance to bush-fires is to use intumescent coatings on exposed doors and walls. There will no doubt be increased use and awareness of these coatings as state governments scramble to create new regulations to help residents cope with increased bush-fire risk from climate change. If you haven’t, we recommend you complete the Intumescent Coatings Course with the National Painting and Decorating Institute, to prepare your business for this growing market.
So, what does the next decade hold? CLIMATE CHANGE AND BUSHFIRES In case you are still wondering, climate change is not only real, its impacting us right now. Last month 11,000 of the world’s scientists signed a declaration warning that the world’s governments must act urgently on climate change to avoid catastrophic environmental and economic collapse. All leading economists are warning that action must be taken, and business leaders are pushing the government to take meaningful action. The recent devastating bushfires through eastern Australia are not a hoax, they were very real, and unprecedented. Fire chiefs
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Climate change will also affect drying times for paint. There is already an increase in the number of extremely hot and dry days in many parts of Australia, and this will continue to increase. Manufacturers may change formulations, but contractors will need to plan their projects to cope with changing climatic conditions. In addition, employers need to plan ahead so that their staff have the physical resources to cope with increasing days of hot and dry conditions.
ENERGY EFFICIENCY AND BUILDINGS Energy efficiency is a core focus of the Australian Building Codes Board and forms part of the Australian, state and territory governments’ strategies to improve energy productivity and reduce greenhouse gas emissions. After focusing on commercial building energy efficiency in NCC 2019, the emphasis of the NCC 2022 energy efficiency work will be on residential buildings. This will involve the development of enhanced energy efficiency provisions for residential buildings, including a possible increase in the level of thermal comfort and a whole-of house-energy use budget. For commercial buildings, initial investigations will be carried out to support possible future changes in NCC 2025. Schemes are already in place to retro fit existing buildings to improve energy efficiency. Products such as heat-reflective coatings are becoming widely used to cut air-conditioning use. The use of these products will continue to rise. In addition, there will be increased focus on air-tightness of buildings. For painters this means we will be increasingly held responsible if we fail to replace door and window seals after painting. ELECTRIC UTES AND COMMERCIAL VEHICLES Almost all vehicle manufacturers have launched or will be launching electric versions of their most popular models. Chances are, when you visit a showroom in 2022 you will see battery powered versions of your favorite models, and by 2030 lots of your mates will be driving them.
General Motors’ first electric pickup truck model will go on sale in the US in autumn of 2021, the company’s top executive said this month, around the same time as
electric carmaker Tesla’s own model is expected to debut, with a starting price under US$50,000. The electric Ford F-150 will possibly debut in 2021. The first electric ute in Australia could come from China, with Great Wall confirming the pure-electric version of its new ute was “always” in its plans. Timing hasn’t been confirmed, but Haval Australia’s managing director Koma Li says Great Wall will take the as-yet unnamed electric pickup despite of ourmarket’s reticence to adopt battery-powered vehicles. Although a lot of painters have scoffed at the idea, just wait until they actually try one of these vehicles. Electric utes have better acceleration, higher torque, the same payloads, 4X4 capability, extremely low maintenance costs (imagine, no more oil changes or fuel filter changes), and the best part; they will cost 75% less to fuel, and if you have a solar PV system it will cost you virtually nothing to run. In 2019, Australian manufacturer ACE EV launched a unique range of electric cars and light commercial vehicles; ACE Cargo, ACE Yewt and ACE Urban. The world is shifting to electric vehicles. Internationally, governments are supporting uptake with measures such as Electric Vehicle targets, bans on internal combustion sales, road access restrictions (congestion / low-emission zones), purchasing grants and registration / tax discounts. People want them, most governments want them and businesses want them. The shift is undeniable and accelerating rapidly. REGISTRATION FOR VICTORIAN PAINTERS After decades of lobbying the government, industry associations have finally achieved the goal of bringing in mandatory registration of most building trades, including painting and decorating. Registration of painters in Victoria is proposed to kick off in 2022, with painters being given one year to apply and register, followed by a 5 year probationary period before full registration by 2028. Although the details have yet to released, we expect that registration will be limited to qualified painters, just as it is now for other trades. Thousands of painters in Victoria will need to be assessed, and training provided for them to become qualified and licensed. This is a tremendous opportunity to improve the professionalism of the industry.
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States with licensing or registration schemes have increased apprenticeship uptakes, and generally a higher standard of workmanship.
PRE-FABRICATED BUILDINGS Within the next 10 years the move to modular and prefabricated construction will result in 10% of all new Australian homes being built and assembled off-site. How will this affect the painting industry? A large percentage of the painting industry will become part of a home manufacturing industry, instead of the building industry. This is a fundamental shift in the way we build. After speaking to several manufacturers, it seems that many components are now being factory finished, instead of painted in situ. For example, standard doors and windows are being sprayed in virtual ‘factories’ and then simply installed in standardised modules. Even walls are being factory finished by spray.
IMPROVEMENTS IN TRAINING AND APPRENTICESHIPS Above: Thousands of painters across Australia and New Zealand are learning on-line with the NIPD elearning system
The national qualification for painters and decorators has been reviewed and is getting a major update. The new qualification is expected to go live in March 2020, and RTOs and TAFE will have 12 months to transition to the new qualification. On behalf of the Construction, Plumbing and Services IRC, Artibus Innovation has reviewed and developed the CPC30619 Certificate III in Painting and Decorating qualification and 19 units of competency. A technical advisory group has met frequently to discuss the update of the qualification and has provided key input into the development of the units of competency and assessment requirements and has considered the feedback received.This review has been guided by a Technical Advisory Group (TAG) and has received feedback and contributions from industry practitioners and teaching networks as well as State Training Authorities. This important work happens about once every 12 years and it sets the curriculum for apprentices for the next decade. Certificate III Painting and Decorating is the nationally recognised qualification for painters and required for licensing in SA, NSW, and QLD, and can be used for registration in WA and Victoria. It is the certificate issued to apprentices on completion of training.
New draft changes include: • Two new core units have been developed: • CPCCPD3035 Prepare uncoated surfaces for painting • CPCCPD3036 Work safely to encapsulate non-friable asbestos in the painting industry • A new elective unit has been added MSFID4016 Design colour schemes for interior and exterior spaces • Protective Coatings will be a core compulsory subject. All apprentices to recieve training in mixing two-pack epoxies, working to specifications, quality control, preparation of metal and concrete. • The number of core units to now be increased to 26, with only 3 elective units. • The unit on basic wallpapering now requires all students to learn how to wallpaper ceilings • Detailed specifications on minimum sizes and amounts for trainers to use during assessment. • The unit on calculating construction work is now a level 3 unit, requiring higher level skills in estimating. (essentially becoming a third year subject)
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TAFE in NSW will be introducing e-learning for apprentices next year, as will several TAFEs in Victoria. The rise of e-learning has eliminated unecessary paperwork, and connected trainers with employers and apprentices in regional areas. Over 1500 painters are currently enroled or have completed on-line courses with the National Painting and Decorating Institute and our partner colleges, including Master Painters Queensland. This trend will continue to rise as employers realise the benefits of higher quality consistent education, and flexible on-site training.
be able to paint large surfaces without the need for scaffolding and ladders. The process consists of three steps. First, the target surface is scanned and an accurate 3D map is generated. Then a designer lays out what needs to be painted -- whether that be a filled in area or a line drawing -- onto the 3D model, and generates the necessary robotic painting commands. And once that’s done, PaintCopter, a modified DJI Matrice 100, can get to work. How will you react to new technology and ideas? How you choose to react may determine the success of your business. Some people react negatively and are scared to try new ways of doing things. But in my experience, those who think ahead and adopt new technology and ideas are better prepared for when the technology inevitably becomes standard practice. ----------------------------------------------------------------------
ROBOTICS AND TECHNOLOGY One of Disney’s latest projects is PaintCopter -- a drone that can autonomously spray paint both flat and 3D surfaces. Disney Research says the goal is to
10 | Aussie Painting Contractor
Daniel Wurm
National Painting and Decorating Institute.
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2020 February Issue | 11
吀爀愀搀攀猀洀愀渀 䤀渀猀甀爀愀渀挀攀 匀攀爀瘀椀挀攀猀 倀琀礀 䰀琀搀 琀⼀愀猀 吀爀愀搀攀 刀椀猀欀 ⠀䌀䄀刀 㐀㈀㈀㠀㐀㜀⤀ 椀猀 愀 䌀漀爀瀀漀爀愀琀攀 䄀甀琀栀漀爀椀猀攀搀 刀攀瀀爀攀猀攀渀琀愀琀椀瘀攀 漀昀 圀攀猀琀挀漀甀爀琀 䜀攀渀攀爀愀氀 䤀渀猀甀爀愀渀挀攀 䈀爀漀欀攀爀猀 倀琀礀 䰀琀搀Ⰰ 䄀甀猀琀爀愀氀椀愀渀 䘀椀渀愀渀挀椀愀氀 匀攀爀瘀椀挀攀猀 䰀椀挀攀渀挀攀 一漀 ㈀㌀㠀㐀㐀㜀⸀ 䄀䈀一 㠀 㤀 㐀 㜀㜀㈀⸀
Comparing Public Liability Policies What makes one tradies public liability policy different to another? We speak with a lot of trade business owners every week, and sometimes we’re asked why there is a difference in cost between two policies which seem the same. The thinking is, if one public liability policy covers for $5 million, it’s no different to another policy which covers the same trade for the same amount. And with that being the case, why would one policy be more expensive than the other? Presumably the more expensive one is just a rip-off, right? Wrong! Two policies which seem the same on the surface can actually be massively different, and can have huge consequences at claim time.
When comparing the premiums on two different public liability insurance policies, make sure you look at the excess and not the initial cost.
Domestic V Commercial Work All polici es don’t necessarily cover all types of work. Taking an electrician as an example, some insurer’s standard public liability policies only cover domestic, some cover domestic and light commercial, whilst others cover anything other than industrial. But that might not be completely obvious when looking at the quote. Instead you need to dig into the Product Disclosure Statement (PDS), policy wording or policy schedule.
Excess
As an electrician you might get one public liability quote for $500 and another for $700. You might think the $700 policy is too expensive, without realising that the cheaper one won’t actually cover the industrial work you’re doing.
This is a fairly basic difference that most people will understand. Just like your home or car insurance has an excess, so does public liability insurance. Some policies have an excess as low as $250 per claim, whilst others can be $2,500 or more.
If you then need to make a claim for the industrial work you were doing, you could find your claim declined and yourself out of pocket by thousands of dollars (or much more) just because you tried to save a couple of hundred on the premium.
The higher excess could be a result of your higher-risk trade, your claims history or perhaps an insurer which just has a higher excess for their own reasons.
Make sure you check that all of your work activities are included. A good trade insurance specialist broker (such as Trade Risk) can help you through this process.
Let’s take a look at some of the differences…
Either way, the difference at claim time is important. You might choose a policy which is $50 a year cheaper but has a $500 excess. If you don’t make a claim, you’ve done well. But if you do make a claim, you would have been better off with the slightly more expensive policy that had a lower excess.
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Exclusions Whilst there are some fairly standard exclusions across the public liability insurance policies offered by different companies, there are some unique differences too.
Most standard policies will exclude work on airports and oil rigs for example. If you’re comparing a couple of common policies, you won’t notice much difference in that area.
The cost of an insurance policy is generally going to take into account the cost of the people standing behind it. If you want the best service, you’re probably not going to get it from the cheapest policy.
But there can be other differences in exclusions between policies, and sometimes in areas that you wouldn’t expect.
Putting it into context
For example one well-known insurer recently limited cover for plumbers working on buildings greater than three storeys. If you have a policy with that particular insurer, the difference between a three-storey building and a four-storey building could be a declined claim leaving you in major financial trouble.
We completely understand that business insurance can become quite complex, which is why we recommend using a specialist trade insurance broker such as us. But to put the above into context, here’s an example to think about. Let’s say we’re comparing two cordless drills. I found this Ozito drill at Bunnings for $49, and this Festool drill at Total Tools for $824.
So before you decide one policy is more expensive than the other and therefore a rip-off, check the exclusions to see if there is a good reason for the difference in price.
One is almost 20 times more expensive than the other! But they’re both just cordless drills right? You stick a drill bit in the end and makes holes in things…
Customer Service
As a tradie, you’d laugh at us for even mentioning those two items in the same paragraph! But the same is true of public liability, and any other form of insurance for that matter.
It’s one thing for the policy to be up to scratch, but what about the service behind the product? This is another area where you need to consider the differences between what’s on offer. One policy for example could be offered by an onlineonly provider who doesn’t offer phone support. Their public liability quote might be super cheap, but so is their service. Or perhaps they do offer phone support, but you’re dealing with a call centre filled with staff who only meet minimum training and experience requirements, and may only deal with a tradie once or twice a week. Compare that to Trade Risk, where every client has their own account manager who is a qualified and experienced insurance broker. You have their direct mobile number to call them anytime, and you know that you’re dealing with someone who specialises in the trades. That might not mean much when purchasing the policy, but it could mean an awful lot when things go pear-shaped and you need an expert on your side to guide you through the claim process.
You might think that two policies are both the same, but to us we might immediately know they are completely different and not comparable at all. Just like the Festool drill isn’t a rip-off just because it’s more expensive than the Ozito, one public liability policy isn’t a rip-off just because it’s expensive than another.
Getting advice Ultimately it pays to get the right advice. If you can’t tell the difference between two policies, or more likely don’t have the time to conduct a thorough comparison yourself, trust a professional to do it for you. You’re the expert at your trade and know which tools you need, whilst we’re the experts in trade insurance and know which policies you need. If you’d like to speak with a trade insurance specialist about you needs, click here to contact us online or call our friendly team on 1800 808 800.
www.traderisk.com.au 1800 808 800 2020 February Issue | 13
FREE
STAFF!
SAFETY COURSE Introduction
DUTY OF CARE REQUIRED TRAINING AND LICENSING IDENTIFY HAZARDS
Safety Principles
SWMS & JSA PU PUTTING OUT A FIRE MANUAL HANDLING SITE SIGNAGE AND BARRICADES ADHERE TO OH&S FOR SPRAY PAINTING
Electrical Safety
ELECTRICAL SAFETY INSP INSPECT POWER LEADS USING POWER TOOLS SAFELY RECORD FAULTS AND TAG
Working at Heights
WORKING AT HEIGHTS EWP SAFETY SET UP SSEQUENCE FOR TRESTLES AND PLANKS For more details, click on the link https://courses.painters.edu.au/
Hazardous Materials
YOUR DUTY IDENTIFYING ASBESTOS IDENTIFY WHERE ASBESTOS CAN BE FOUND ENCAPSULATING ASBESTOS LEAD PAINT HAZARDS LEAD PAINT RISK CONDUCTING A FIELD TEST FOR LEAD EXTERIOR PRECAUTION PREPARATIONS PROTECTION AGAINST LEAD EXPOSURE CONTAINMENT LEAD ABATEMENT DRY SANDING LEAD ABATEMENT CHEMICAL STRIPPING WET SANDING ENCAPSULATION OF LEAD CLEAN UP PROCEDURES OF HAZARDOUS SUBSTANCES HEALTH SURVEILLANCE
More than 2,000 homes have been destroyed in Australia since the start of the bushfire season. More will certainly be destroyed before the season ends in March. Could these houses have been built to better withstand fire? Quite probably. But that doesn’t necessarily mean Australia’s building regulations need reforming to ensure homes are made more fireproof. Appropriate building codes are about weighing costs and benefits. Only analysing the reasons buildings were destroyed will tell us if more needs to be done.
Performances standards Not all buildings are created equal. Newer buildings will generally be more fire-proof than older ones, due to building regulations having been improved over time. In particular, national building requirements for residences in bushfire-prone areas were improved after the 2009 “Black Saturday” bushfires in Victoria, in which 173 people died and more 2,000 homes were destroyed.
Buildings are regulated by states and territories but governments have recognised the value of nationally consistent building codes through the National Construction Code. This code, among other things, sets minimum standards for the design and construction of new buildings on bushfire-prone land. (What land is deemed “bushfire prone” is defined by state and territory legislation.) The National Construction Code is “performance based”. It doesn’t specify how a building must be built, but how a building must perform. This means innovative designs, materials and construction methods can be readily approved. A residential building on bushfire-prone land, the code states, must be designed and constructed to “reduce the risk” of ignition from a bushfire, appropriate to the risk from bushfire flames, burning embers, radiant heat and intensity of the bushfire attack. The risk to which a building is expected to be exposed depends on the individual site and conditions such as vegetation type and density, and slope of land. Properties are assessed and given a “Bushfire Attack Level” (BAL) rating by inspectors. There are six BAL levels that classify the severity of potential exposure to bushfire. The highest – BAL FZ – is for buildings exposed to an extreme risk, such as a house surrounded by trees that could produce direct contact from flames.
A house in Flowerdale, Victoria, destroyed in the 2009 bushfires. About 80% of houses in the small town were lost, along with 10 lives. Raoul Wegat/AAP
Lower BAL levels take into account risks from burning debris, ember attack and radiant heat. The lowest deems the risk insufficient to warrant any specific construction requirements.
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Construction details for each BAL cover building elements such as floors, walls, roofs, doors, windows, vents, roof drainage systems, verandahs, and water and gas supply pipes. For example, fire-resistant timber may be required for floor framing, or windows may be required to use toughened glass.
Balancing competing interests Are the requirements of the National Construction Code good enough? If the aim is to minimise the number of buildings damaged or destroyed in extreme fire events, the answer is no. But that’s not the aim. Like most government regulation, the code requirements are about balancing competing interests. All building regulations are subject to cost-benefit analysis. They must demonstrate a “net cost benefit” to the community – that the cost of compliance will be less than the benefit delivered to the general community. It’s a cold calculation about the risk and potential cost of homes being destroyed in bushfires versus the more certain costs involved in requiring all homes to be built to more stringent building codes.
The commission’s report made a number of recommendations for changes to the National Construction Code. These included new provisions to: • make protection from ember attack a performance requirement • address the design & construction of private (underground) bushfire emergency shelters • include design and construction requirements for non-residential buildings, such as schools and aged-care centres, in bushfire-prone areas. All governments agreed to the first two recommendations, which were promptly implemented in the National Construction Code (2010). The recommendation about non-residential building was not implemented at the time because governments considered that planning laws would not allow these types of buildings to be built in a bushfireprone area. However, the 2019-2020 business plan of the Australian Building Codes Board (which administers the National Construction Code, includes a “bushfire provisions for non-residential buildings” project, so it is reasonable to expect changes to the code in future. Read more: Bushfires won’t change climate policy overnight. But Morrison can shift the Coalition without losing face
Government policy treats potential property loss as a matter for owners to address through property insurance. There’s no reason to expect this to change any time soon.
This season’s fires may also provide impetus for other changes to the construction code. One key factor that will be worthy of research is the age of the buildings destroyed.
Learning from experience
Depending on how many homes lost were built after 2010, it might be argued that changes made after the 2009 Victorian fire have been insufficient to keep up with evolving conditions.
If the cost of building destruction in bushfires turned out to be greater than the cost of more stringent building requirements, there would be a strong rationale to improve the regulations. This is why postfire analysis is so important. A prime example is the royal commission into the causes and costs of the Black Saturday fires.
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Raymond William Loveridge
Adjunct Professor - School of Built Environment, University of Technology Sydney
2020 February Issue | 17
The Next Step As all humans living on this earth, we go through a multitude of ‘steps’ in life. We start out as a baby making silly/cute ‘goo-goo, gaa-gaa’ noises and then after a while being able to communicate in a language that is understandable. From there we grow into children, teenagers and then into adults. We go to school, go to college, get a girl/boyfriend, buy a car, get a job, break-up with the girl/boyfriend, find a new one, buy a house, get married (or not), have kids (or not), get divorced (hopefully not), find another partner and then, retire and gradually grow old (or in some cases, grow old and then retire). So as you can see, we generally go through life taking the exact same steps and in the exact same order.
percent by the end of the second year and seventy five percent by the fifth. This should come as no surprise when you consider that only a small number of businesses prepare a ‘Business Plan’ before they commence, in fact, only three to five percent of existing small Australian businesses prepare one.
Many of these ‘steps in life’ can’t be planned; they just happen as they are, part of life, but when it comes to having your own business, you can decide on your own path and the way you want it to take. For this to happen, it is imperative to have something in mind, or something in place for the direction your business should head in as it could determine the success or failure of your business.
An important bit of advice though is to do it in an order that is achievable. You can add or swap the list around at any stage as things can change throughout the course of being in business.
It is estimated that thirty percent of new small businesses fail in their first year of operation, fifty
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A ‘Business Plan’ will help keep you on track. It is a simple process of making a list of items you need to undertake during the building of your business. It doesn’t matter if you’re content in just working by yourself, or if you want a larger business with many employees, in either case you need to know the ‘steps’ to take to achieve the goal you have in mind.
Having been in the painting industry myself for over 50 years and self-employed for 37 of those years, I have personally seen many businesses attempt to go too big too fast and after a short period of time, have found themselves in financial trouble. This can easily happen to anyone.
For instance a one-person-operator hiring a lot of staff because they have been inundated with work and then not being able to pay them as cash-flow is slow. Or it could be a new business going out and purchasing new vehicles and equipment, promotional gear for the employees, expensive advertising, private plates, 1800 numbers, etc, etc, and then finding they have over-capitalised and the work has dried up. No matter what stage you are in business, plan for the future and plan it carefully, and gradually. Make note of the steps you need to take to get there. Don’t purchase things that you can’t really afford; it can wait. The customer is first looking at the quality, professionalism and reputation of you, your work and your business. They are not looking at your expensive equipment or your fancy work vehicle. It can help, but it’s not worth going into great financial debt just for an extra acceptance here and there. So in this case, one of your steps would be; ‘Have ‘x’ amount of dollars in the bank (after all bills are paid) and purchase a spray-gun’. Another step could be; ‘Secure consistent work and employ tradesperson/s’. Now if you’re a single operator and everything is just cruising along, you may think there’s nothing else to
plan. You just ‘keep doing what you’re doing’. What about retirement though? This is a huge step that needs to be thought of 20 years before you hit that magic (scary) year. So this is where you need to take the step at putting money away into a super fund. It doesn’t have to be a lot, just make sure they are regular payments. When you get to my age of 65, you will really appreciate the monetary sacrifice you have made and also know that you won’t have to rely on a Government Pension. I have now reached my ‘last step’ in business and that is, Retirement. I can now look forward to enjoying the rest of my life with my wife and family and it’s all due to the planning and taking the right steps to get there.
So what is your ‘Next Step’? ----------------------------------------------------------------------
Jim Baker
www.mytools4business.com
2020 February Issue | 19
www.mytools4business.com
My Hourly Rate My Paint
Costing Guide 20 | Aussie Painting Contractor
Calculator
Amid thick bushfire smoke in cities including Canberra and Melbourne, employers need to consider their legal obligations.
Meaning of ‘reasonably practicable”
Some have directed their workers not to turn up in order to avoid to occupational health and safety risks. Among them is the Commonwealth department of home affairs which last week asked most of its staff to stay away from its Canberra headquarters for 48 hours.
that which is, or was at a particular time, reasonably able to be done in relation to ensuring health and safety, taking into account and weighing up all relevant matters
Other employers want to know where they stand.
Under the section 18 of the Model Act, “reasonably practicable” means
By themselves, these words aren’t much of a guide, so the Act includes examples of “relevant matters”, among them: • the likelihood of a hazard or risk occurring • the degree of harm that might result • what the employer knows or ought reasonably know about the hazard or risk, and ways of eliminating or minimising hazard or risk • the availability and suitability of ways to eliminate or reduce hazard or risk • the cost associated with available ways of eliminating or minimising the risk, including whether the cost is grossly disproportionate to the risk
Each state and territory has its own occupational health and safety laws. However most line up with the so-called Model Act, intended to harmonise state laws. Under section 17 it imposes on employers a duty to, so far as is reasonably practicable, ensure health and safety by eliminating or minimising risks. This employer’s duty applies not only to its employees, but also to other types of workers including independent contractors.
Meaning of ‘likelihood’
Employers should make themselves aware of the risk of an air quality hazard. This can be achieved by checking the most up to date air quality index in the location on an environment protection authority website: • • • • •
NSW • Victoria Queensland • South Australia Western Australia • Tasmania Northern Territory Australian Capital Territory
2020 February Issue | 21
Workers who work outdoors are more likely to be subject to harmful effects of bushfire smoke than indoor workers. They are more likely to experience irritation to their airways, nose and eyes. They might also experience low visibility which might make their work more dangerous. The machines they operate could also be impacted by the smoke and dust in a way which would make operating them more dangerous. Special measures should be taken to protect workers who work outdoors, such as providing them with face masks or rescheduling their work.
It’s very likely law enforcers will presume the information on these websites constitute information the employer ought to have known in determining the appropriate action to take. For example, it would be difficult for an employer to argue they didn’t know P2 rated face masks should be provided to workers when the Safe Work Australia website specifically mentions them as an appropriate way of eliminating or reducing air quality hazards.
Meaning of ‘availability of ways to reduce risk’ Safe Work Australia says employers should have in place measures to manage the risks to health and safety of working outdoors when air quality is reduced, including: • working indoors (where possible) • rescheduling outdoor work until conditions improve • ensuring buildings and equipment are
functioning correctly and have not been affected by dust or debris • cleaning dust and debris off outdoor surfaces • providing personal protective equipment such as eye protection and correctly fitted P2-rated face masks. Smoke emissions from Australian bushfires from 1 December 2019 to 4 January 2020.
Meaning of ‘degree of harm’
It is certainly arguable the likelihood of harm for indoor workers is much lower, especially if the air quality in their workplace is the same or even better than the air quality in their homes.
Meaning of ‘cost of minimising hazard’
The cost of elimination or minimising hazard will be higher for some measures than others. For example, it might cost more to direct workers to stay home than to provide face masks. These costs need to be weighed up against the likelihood and degree of potential harm.
Employers should have up-to-date information about the health of their workers, especially those workers who have pre-existing conditions that might predispose them to harm from smoke.
If the likelihood and degree of harm is high, it’s unlikely law enforcers will be particularly sympathetic to arguments about cost.
Among these would be workers who have asthma or other respiratory disorders.
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Special steps should be taken to protect them, taking into account their pre-existing conditions.
Elizabeth Shi
Meaning of ‘reasonably ought to know’
Employers should be checking up-to-date information on an environment protection authority website and on the website of Safe Work Australia.
22 | Aussie Painting Contractor
Senior Lecturer, Graduate School of Business and Law, RMIT University
units.
2020 February Issue | 23
A Guide to Dealing with Uncertainty What path to take... The amount of time spend fretting over what path to take, when we’re feeling uncertain, can sometimes be staggering. We’re entering into the unknown territory, and we don’t know how to proceed. It happens all the time for many of us: we start a new job, launch a new venture, change careers, have to deal with incredible change, decide to write a book or create something online, put ourselves in a new social situation.
Some of the things we do in response to this uncertainty:
These are very common reactions to entering into uncertainty, but usually not very helpful. They get in the way of doing the work and living the life we’d like. So how do we deal with uncertain path that we’d like to embark upon? It’s not always easy, but I’ve found there to be a set of practices that can help tremendously.
The Mindset Shift
• Extensive research, often to the point of very diminishing returns, sometimes to the point of being overwhelmed by how much information we’ve found.
The first mindset shift to consider is that uncertainty is not bad, or something to be avoided. It’s a natural part of doing anything meaningful. In fact, feeling uncertainty is a great sign that you’re doing something challenging and meaningful.
• Buy books, courses, programs, other materials that we think will guide us — this isn’t necessarily a bad idea, but in truth, none of this will give us certainty.
Uncertainty can be embraced, opened up to, even loved. We can learn to cherish the uncertainty in our lives, if we shift our mindset and practice with it.
• Try to find teachers or people who will guide us, who have been there before — again, hoping that they’ll give us certainty, but often this isn’t a magic pill either. • Delay making a decision, putting it off over and over because it’s too hard to decide. Avoid, avoid. This might be the most common option, actually. • Give up because you don’t know if you can do it, don’t know what to do, don’t know what the hell you’re doing. This is pretty common too — most people give up before they even start.
24 | Aussie Painting Contractor
The second mindset shift is to see an uncertain path as a practice opportunity. It’s not something to run from, but a place to stay, so that we can grow, learn, and create. Every time we feel uncertainty, it can be seen as a calling to open up and practice. To turn towards and try a new way of doing things, rather than indulging in old, unhelpful patterns.
The Uncertainty Practices So let’s say you’re about to head down an uncertain path — starting a new job, moving into a new phase of your life, writing a book, launching a business or product …
How do you open to the uncertainty and practice with it? Here’s what I’ve found to be useful, in writing books and launching programs, along with dealing with huge life changes: Stay in the uncertainty as a practice, and with devotion. You are staying in this place of uncertainty to practice with it, but also to serve those you care deeply about. They are worth it. Remind yourself of them, and that doing this for them is more important than your discomfort with uncertainty. Let yourself feel uncertainty in your body, staying with the sensations in the moment — and learn that it’s not a big deal to feel that uncertainty. With practice, this becomes easier and easier. Go with the gut (or the heart). If you’re unsure of what path to take (need to make some decisions), it’s easy to get frozen in indecision, because there’s not clear answer. You can ask a hundred people, and not get a clear way to make a decision. You can read a million articles and books, talk to experts, but there’s no right
answer. And so, you have to learn to trust your gut. Or your heart. When I’m at a crossroads, what I try to do is sit still for a little while, contemplating the question. I feel into my heart, and decide what feels right. I don’t have any certainty, because there’s no right answer. Instead, I have to trust my gut or heart, and just go with it … the real trust is that even if it’s the wrong answer, I’ll be perfectly fine. More on that bit below. Embrace the not knowing. So you’ve used your heart to make an uncertain choice … but you don’t know exactly how it will go. That’s OK. In fact, you can embrace this not knowing … it’s like reading a book or watching a movie without knowing how things will unfold. That’s part of the fun! Not knowing is a beautiful thing, even though most of the time we really want to know. Can you take the next step without knowing, being completely open to how things might turn out? Being curious to find out more, without having a fixed idea of how it should be? Letting things be fluid and fresh? Try it and see! Let things unfold as you walk the path. As you move along this uncertain path, see how things turn out. Notice what you can notice, learn from this new information. For example, if I’m going to launch a new product, I don’t know how people will respond. I can launch it without knowing, and see how they respond, listen to their reactions, talk to them and find out more.
2020 February Issue | 25
If I’m dealing with a health issue, I can try different solutions, noticing how they affect things. I don’t know how things will unfold, but I can walk the path and find out. Get information, adjust the path. As you let things unfold, you’ll be gathering new information. You’ll learn whether things turned out as you expected or not. You’ll be open to all of this, but it might turn out that you need to make adjustments. For example, when I launched my Fearless Training Program, I didn’t know exactly what people would need in the program, or how they’d respond to the training. Listening to them has helped me to understand better, and I’ve adjusted the program a lot in the past 18 months. Over and over, I listen and learn and adjust. It’s good to build in regular reviews so you can make adjustments as you walk the uncertain path — weekly reviews are great. Learn to trust you’ll be fine. You might flop on your face — but what’s the worst-case scenario (of all likely outcomes)? Probably nothing too bad. You won’t die, in most cases. What I’ve learned is to trust that things will turn out fine. Not as I expect, but fine. I might fail, but I learn to deal with the failure. A failure is just a way to grow, learn, get better. It’s not the end of the world. Walking the uncertain path, let yourself develop trust in yourself to respond resiliently to whatever happens. With this trust, you’ll learn that you don’t need to avoid the uncertainty. Create rituals to support the uncertainty. All of this is great in an ideal world — but in reality, we’re likely to go to our old patterns. The way to work with this is through rituals designed to
26 | Aussie Painting Contractor
support these practices. For example, you might start your day with meditation, letting yourself feel the uncertainty in your body. You might set a focus session for first thing in your work day, where you let yourself push into uncertainty every day, at least once a day. You might set up a weekly review, where you make adjustments based on how things are unfolding. In that review, you might notice how things are going just fine, and let that cultivate trust in the process and in yourself to handle things. You might get a group of advisors and check in with them once a month, talking to them about your uncertainty. Figure out what rituals you need to support your practice with uncertainty, and set them up. This path of uncertainty isn’t anything you can’t handle. Many people have walked similar uncertain paths in the past, and are doing so now. You can do it just as well as anyone. Our paths must contain uncertainty, because no one knows what the hell they’re doing. We’re making it up as we go along, learning as we go, and if we’re conscious about it, we can dance with the uncertainty with a smile on our face.
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Leo Babauta
a successful ‘simplicity’ blogger and author from California, the creator of top 25 Blog
ZEN HABITS
2020 February Issue | 27
Lead Kills
Find out if the things around you are safe for humans and pets.
Buy your DIY- Sampling Lead Test Kit/Lab Analysis Lead Kit Lead Group’s lead Test Kit are the only ones available in Australia. Even LOW level of lead is HARMFUL CLICK HERE for videos on How to use the sampling kit For donations, CLICK HERE This Lead Safe World Project of The LEAD Group, aims to achieve a lead safe world by 2041
You take the samples and send them to Sydney Analytical Labs. www.lead.org.au 28 | Aussie Painting Contractor
The secret to making Financial Reporting to the QBCC a breeze! Have you been burning the midnight oil in your office to finalise bookkeeping tasks or work on your business financial administration recently just so you could meet the QBCC reporting requirements? It’s certainly one way to get yourself out of trouble but it doesn’t have to be like this. In this article I’ll give you some tips on how to take back time you might have wanted to spend in a different way. Deadline to submit your financial information for the 2019 financial year to the QBCC has just passed. All QBCC licence holders were required to submit their financial information by 31 December 2019. Incredibly, approx. 40,000 builders and contractors have not complied. However, some licensees who have not submitted their reports to the QBCC by this date can now breathe a sigh of relief. The QBCC has agreed to extend a further 12 months to SC1 and SC2 and Category 1 to 3 builders and subbies to strengthen their financial health in line with new laws and the Minimum Financial Requirements (MFRs). If you’re in any of these categories, be aware that the QBCC nonetheless expects you to submit your financial information as soon as possible. Unfortunately, for Category 4 to 7 licensees the situation is different. If you haven’t submitted your financial information you can expect a follow up call from the QBCC in the next few weeks. Unless you act then, your license may be at risk of being suspended or cancelled.
Challenges of QBCC Financial Reporting Many builders and tradies have asked me what to do to make QBCC reporting easier for them and not have it turn into a nightmare. My stock-standard answer usually is: systemise and streamline your business’ financial administration. When you have to provide your financial information to the QBCC at set intervals, or even on an ad hoc request, you need to have financial systems in place that allow you to tap into real-time data and produce reports easily.
For example, you need to provide the QBCC with a figure for both your Maximum Revenue and your Net Tangible Assets. They are set at the following levels: • For self-certifying category 1 (SC1) licensees, the minimum NTA is set at $12,000 for a fixed maximum revenue of $200,000. • For self-certifying category 2 (SC2) licensees, the minimum NTA is set at $46,000 for a fixed maximum revenue of $800,000. If you have your figures handy you can go straight to the QBCC website and use the online Calculator to work out your Maximum Revenue and Net Tangible Asset.
2020 February Issue | 29
How to be well prepared for QBCC Financial Reporting There are three key things you need to do to get your preparation up to scratch for QBCC reporting purposes. 1. Review your accounting system and ensure that you have expense chart of accounts set up the right way. It is important that you have assets posted with the right account code in your system. There are also various report types that you can set up in accounting systems that will allow you to easily access the data. 2. Make sure you enter your financial data every week and reconcile the ledger at least once a fortnight or monthly against your bank account. 3. Review your financial position on a quarterly basis. In particular, look at the two critical areas of assets and liabilities.
Once you’ve set up your system properly and utilise the processes, it’s easy to produce the reports and meet your QBCC reporting requirements at the click of a button. It is important though that you are consistent in your practices. Don’t let your data entry lag behind, as that’s what can trip you up to produce accurate reports.
The portable, inexpensive method to prevent paint waste-water polluting the environment.
30 | Aussie Painting Contractor
Prevention is better than cure Most builders/tradies love making good money, but when it comes to managing the money for the business, there’s usually less passion for it. While it’s often regarded as a necessary evil and red tape, it is what it is and businesses will always need to have rigorous financial administration and budgeting processes to be successful and get the edge over their competitors. Having your accounting system set up properly to equip you with better reporting capability is definitely true to the adage ‘Prevention is better than the cure’. I’ve recently been involved in helping a business owner fix a non-compliance issue they had with the QBCC MFRs. Interested to find out more about how to make meeting your QBCC reporting requirements a breeze? Call my office on (07) 3399 8844, or you can just visit our website at www.straighttalkat.com.au Copyright © 2020 Robert Bauman.
Phone: 13 25 59 Fax: (07) 3877 2285 sales@quickally.com.au
ALUMINUM ACCESS EQUIPMENT
10 YEAR Manufacturer’s Warranty
Supporting the trades of Australia with Quality Aluminum Products
2020 February Issue | 31
Pantented Helps prevent falls Easy and quick to fasten in 5 seconds Can be used on either side of the ladder or both for extra support Meets general requirements ANSI-ASC A14.8-2013 Holds ladder in strong winds One of a kind jaw mechanism
32 | Aussie Painting Contractor
PETITION TO HAVE PAINTING REMOVED
from the Qld Home Warranty Insurance Scheme! Petition to amend the Queensland Building and Construction Commission Regulation 2018 Queensland residents draws to the attention of the House the excessive cost to Homeowners being forced to pay the Queensland Home Warranty Insurance Scheme pursuant to the Queensland Building and Construction Commission Regulation 2018 to give them a warranty for repairing their homes in the event of faulty workmanship. The Regulation requires every private homeowner to up to pay 6% of the contract price into the Scheme. As an example, for painting defects where the contract value is $3,300 Inc. GST, the insurance premium would be $206.95 Inc. GST. Prior to the introduction of this legislation the Queensland Building Construction Commission (QBCC), had, and still has, the power to enforce all licensed contractors to rectify any defective work without the homeowner having to contribute to the Scheme as required by the Queensland Building and Construction Commission Regulation 2018.
The changes to the Regulation has also increased the legislative red tape for small painting and decorating business owners, causing hardship for them while they are often competing against unlicensed contractors as they do not, and are not able, to force the homeowner to contribute to the Queensland Home Warranty Insurance Scheme. Your petitioners, therefore request the House to take all the necessary action to remove painting and decorating of residential properties from the Statutory Insurance Scheme (Qld Home Warranty Insurance Scheme) from the Queensland Building and Construction Commission Regulation 2018, which would require the following amendments to the Regulation;
1. Section 26 – add (i) work for painting and decorating of residential properties. 2. Section 27 (a) – remove the example “painting and external wall of a residence or related roof building. 2020 February Issue | 33
Avoiding Employee Risk One Out of Ten Contractors Face Internal Theft, Will You Be One of Them?
Contractors work hard each and every day. The sheer daily tasks of finding, estimating and installing jobs can be overwhelming. Many are too busy to keep a close eye on the numbers and fail to put anti-theft safeguards in place. Remember, you put locks on doors to help honest people from being tempted. Many of your employees face daily financial challenges. Put processes in place to protect them from themselves. Despite our best warnings and teachings, we find 1 out 10 of our customers experience some type of office embezzlement. It happened this week to one of our customers. In contrast, only 1 out 100 experience a fire, tornado or other natural catastrophic events. It can happen to you and the electronic nature of banking and financial transactions creates an ever-growing threat. Most banks no longer want to provide written copies of checks making the risk even greater. Start by reviewing theft insurance coverage. Rates for theft insurance varies greatly from state to state. Some policies automatically includea certain amount of coverage. Understand how the coverage works, how much are you covered for and is that amount per incident or per year? You name it, we’ve seen it. From the office manager having an affair with the warehouse manager and they doing side work; to a case involving a working class 60k a year bookkeeper having a 10k watch and 60k car. Another contractor’s daughter was the office manager and stole hundreds of thousands of dollars to support a drug habit. Ironically, his insurance cov-
34 | Aussie Painting Contractor
ered him but to collect, but he would have to prosecute his daughter. He chose bankruptcy and financial ruin instead of prosecution. In each case, the owner wasn’t paying attention to the details. When the theft was discovered, the owner’s first remark is he/ she can’t be stealing from me. Here are some of the many ways we have seen office personnel steal from contractors. Falsifying checks, using company credit cards, overpaying themselves, creating phony employee checks, overpaying their family members that may be working for you, buying material and doing side jobs, creating fake jobs and customers. These are just a few of the ways you may fall victim. In accounting class, they teach you to create the illusion of inventorying a liquor store every week. No one can inventory every week but if employees think you are looking, they are less likely to steal. If your people think you are not on top of things, they are more likely to get sloppy with your money. It can start with something as simple as using company stamps and graduate to charging thousands of dollars on your credit cards. You can’t always protect yourself but here are some safeguards to put in place: • Have bank and credit card statements come to your home or personal email. • Try to have someone independent or who does not write the checks balance the checkbook each month.
• Get written copies of checks and if not available, create an established process for you to look at checks each and every month. • Run a monthly financial meeting. If things don’t seem right, ask lots of questions. Know your numbers. • In states where it is legal, always run a credit and background report on office managers, bookkeepers and others that will handle your money. If they can’t manage their money, how can they manage yours? • Don’t steal from the company yourself by taking cash and not reporting it. If its ok for you to steal from the government, why is it not ok for them to steal from you? • Put limits on all employee credit cards and review them carefully. • Create a purchase order system. • Do common sense things like compare employee gas cards to how many miles are put on the company vehicle each month. • Employees can also steal time. Field electronic payroll is a rapidly growing industry. For the office, there are simple programs that monitor when a computer is logged in and out of. GPS on phones and trucks can help with monitoring employee
hours. If you use GPS, create simple reports and spot check them when payroll is done. One contractor was surprised his project manager had a drug habit. However, when reviewing the GPS on the company truck, the PM was frequently taking the company truck into the “projects” at 3am. Don’t want to appear that you don’t trust people? Let your accountant and insurance company be the bad guy. Let them write a letter making safeguard suggestions. If people ask, simply say it is not for them, you know they are honest. It is just part of company policy. Another area of risk is cyber theft. You may want to have a security audit. You also may want to do accounting on a separate server that does not get email. Let the professionals see if you are at risk. Remember that consumer laws regarding bank accounts and credit cards do not necessarily cover business accounts. You may find it tough to collect on a 100k funds transfer that went to Russia or Nigeria at 2am. Worse than the financial hit of having employee theft is the loss of trust in someone you entrusted. Such betrayal can be emotionally devastating. Do everyone a favor and put processes in place to protect the company and employees.
Monroe Porter
is president of PROOF Management a firm that teaches seminars and runs networking groups for painting contractors.
www.proofman.com
2020 February Issue | 35
Come and share your painting ideas! www.facebook.com/groups/aussiepaintersnetwork/ 36 | Aussie Painting Contractor
Exact steps to win
more quotes as a painter How many quotes do you provide a day? A week? A month? And what’s your average-dollar sale? How many of them do you win? Have you ever wondered why you don’t convert more painting quotes? In this article, you’ll learn the exact steps to convince customers to choose your painting business. Lifestyle Tradie’s The Trust Escalator TM represents the buying journey. Your chance of converting customers involves completing all five levels as you make your way to the top floor — the customer-conversion zone! Are you ready to understand your customer’s perspective through the buying journey — and how you can influence the experience along the way?
Level One – Business
How is reputation and integrity typically established these days? Your potential customer is looking for information about you and your painting business. All you’re trying to do is encourage them to make contact. Think about your target customer. How do they establish a business’s credibility? Mostly, they’ll go straight to the internet. Let’s say they end up on your website. Their decision to choose your business will be made within seconds.
If you pass, you claim a tick on the first level of The Trust Escalator TM.
Level Two – You
This refers to the first contact your potential customer makes with you. Most likely, it’ll be over the phone and then, in person. Think about your tone and speed of your voice, how you enter their property, how you present yourself and introduce yourself. There’s power in the one per centers to get through Level Two.
Level Three – Product/Service
Are you the right person to complete this customer’s painting work? Your professional suggestions, your knowledge, your confidence, the language you use and the visual aids you share will all have an impact on the customer continuing to climb The Trust Escalator TM. Customers want to know you’re highly capable. They’re asking themselves, ‘Should I work with this painter?’.
How professional is your website? Is it modern? Quick to load? Easy to navigate?
2020 February Issue | 37
Level Four – Price
We have entered the conversation of price. Where you can, quote on-site. It’ll help you win more quotes through the simplicity and professionalism of the customer experience. They’re talking about the job now, why not discuss this now? Strike when the iron’s hot!
Level 5 – Time
Time is the final stop on The Trust Escalator TM . If you have the opportunity to ask for the sale on the spot, you must. Your job is to help the customer buy both now and later. Depending on the size and scale of work you’re quoting on, you could let the customer know your availability for the coming months. By forward planning, you can pencil in a date to make your next visit.
Patience also pays. Some customers may sit on your quote for weeks before they’re ready to make a decision. Stay in touch. Adding them to your email and SMS list is a good way to keep your business top of mind.
Welcome to the top floor
If you can succeed in applying The Trust Elevator TM in your business, you’ll see your quote conversion rate increase and your profits rise to new levels. People don’t remember details. They do remember how you made them feel. Make sure every customer contact is a positive one and you’ll have a steady stream of loyal customers. Want to convert more quotes in your painting business? Grab your free digital copy of Lifestyle Tradie’s new book Start Up. Scale Up. Sell Up which will provide you with the exact steps to build a profitable painting business. ----------------------------------------------------------------------
Angela Smith
Co-founder – Lifestyle Tradie
“Helping Trade Business Owners Fast-Track Financial & Lifestyle Success”
Construction Industry Mentoring Flyer BUSY At Work and Construction Skills Queensland (CSQ) have teamed up to offer a new and exciting mentoring program for apprentices and trainees in the construction industry. Industry Specialist Mentoring for Australian Apprentices (ISMAA) provides individual support to Australian Apprentices and Trainees in the first two years of their apprenticeship or traineeship. The program is aimed at industries where automation, robotics and other new technology or influences are changing the future roles of apprentices and trainees, and tradespeople. BUSY At Work are proud to be delivering the ISMAA program on behalf of the Australian Government. We will work intensively with apprentices to help them stay engaged, complete their training and achieve great things in their careers and to become the great tradespeople of the future.
Our ISMMA mentors have a wide range of experience and understand the changing nature of your industry. Our Industry Specialist mentors will engage with the mentee to create a specific and individual mentoring plan to be implemented over a 6 month period. Visits will focus on workplace and industry changes, future career options and new skills that may be required. BUSY At Work believes this program will benefit all involved and help improve the retention rate of apprentices and trainees in the construction industry.
Tim Gillespie ISMAA Mentor - BUSY At Work 0438 869 227 Tim.Gillespie@busyatwork.com.au Visit busyatwork.com.au/ismaa
Specialist Contractor Mentoring for Australian Apprentices (ISMAA) is funded by the Australian Government Department of Education and Training. 38 | AussieIndustry Painting
2020 February Issue | 39
40 | Aussie Painting Contractor
Tips for updating your
BUSINESS PLAN
Think of your business plan as a roadmap designed to point the way to your current destination, knowing that where you land may not be your ultimate end point. After all, things are constantly changing in a healthy, thriving business. Market fluctuations, competitors, changes in staffing or your sales figures may nudge you in a direction you wouldn’t have previously dreamed of, requiring new goals and strategies to achieve them. A change in plans may also require refinancing – another important reason to keep your business plan up to date. These tips will help you revise your plan painlessly, so you’re best positioned to stay on course and impress a potential lender when applying for funding. Schedule adequate time Most likely, it took several weeks – even months – to do the initial research, data organization, goal setting and number crunching when you drafted your first business plan. An update will be a lot less time consuming, but you’ll still need to set aside adequate time in your schedule to review your company mission and goals, analyze new data, consult with your accountant and decide on the most profitable strategy moving forward. It’s recommended that you review and update your business plan at least once a year. While many business owners update their business plans at year end, it may make more sense to time your update with your income tax cycle, to take advantage of the latest financial data available. Do your homework Before you sit down to revise your plan, spend a few hours reviewing the latest market research as well as your business metrics. This exercise will help you brainstorm ideas, set goals and make better decisions on how to achieve them.
Specifically look at any untapped opportunities your business can look into as you review: • Key market trends you can take advantage of with a new product or service; • Gaps in what your competitors are offering that your company can fill; • New technologies that can move your business forward by improving efficiency or productivity; • Your marketing and sales processes that yield the best results. Know your numbers Want to save time as you update your business plan? Schedule a meeting with your accountant to discuss your company’s current financial health and what you can do to maximize profits going forward. After all, your financial data is only as useful as your ability to analyze it and act appropriately. Accountants are trained to look at the facts and give you a clear-eyed view of actual results – something many business owners aren’t naturally skilled at. Final Tip As you prepare to update your business plan, take note: the most compelling piece to a lender, investor or any other reader is the Executive Summary. The key is to draft the Executive Summary only after you’ve completed the other sections of your business plan. That way you’ll have all the information you need to succinctly describe your company’s mission, direction and goals for success. For more useful tips on how to write an Executive Summary, check out this helpful post from Entrepreneur.com. ---------------------------------------------------------------------
Sandra Price
www.tradiebookkeepingsolutions.com.au Facebook : Tradie Bookkeeping Solutions
2020 February Issue | 41
Registration in Victoria for
PAINTERS & DECORATORS If you’ve heard about the new laws concerning painters licensing and painters registration in Victoria, but are not sure what it’s all about, you’ve come to the right place. Here, we’ll explain the new painters registration and painters licence requirements in Victoria. If you are a painter in Victoria, or run a painting business in Victoria these changes may apply to you. Recently, the Victorian Government made some changes to the Building Act 1993. These changes are called the Building Amendment (Registration of Building Trades and Other Matters) Act 2018. The aim is to ensure certain trades have licencing and registration, and was introduced after years of lobbying by the Master Builders Association, the National Painting and Decorating Institute and other associations In 2015 in Victoria, the National Institute of Painting and Decorating surveyed over 550 members of the painting industry, with support from Aussie Painters Network. The survey responses revealed that: • 74% of Victorian painters believed licensing is ‘very important’ • 74% of Victorian painters believed licensing should be limited to qualified painters • 85% believed Certificate III Painting and Decorating (or equivalent) should be the minimum qualification • 55% believed licensing should be required for any work over $1000 • 96% believed licensing should be required for companies, and 93% for sole traders • 55% believed interstate licenses should be recognised in Victoria • The majority believed licensing should cost less than $200 per year This was the basis of our submission to the Department. In 2018 the legislation passed parliament. In 2019 the government asked for feedback as to which trades should be prioritised. We recommended that painters be prioritised because of the risk of unqualified painters preparing asbestos and lead paint.
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Recently, the Department of Environment, Water and Planning released the priority trades. The Minister for Planning has determined that carpentry will be the first scope of work to be considered for regulation, starting in 2021. Remaining scopes of building work performed by trade contractors and employees will be gradually considered over a five-year period in accordance with a staged implementation plan. Registration for Painting and Decorating is scheduled to be implemented from 2022.
WHAT ARE THE BENEFITS OF REGISTRATION AND LICENSING OF TRADES? The objectives of the new registration and licensing scheme are: • there is greater accountability for non-compliant work • there is confidence that people who carry out or perform restricted work have adequate qualifications, skills and experience • incentives for skills formation in the building industry are improved (including completion of apprenticeships) • there is relative consistency between the approach taken to trade contractors and building trade employees so as not to create incentives for the replacement of employees by trade contractors, including the use of ‘sham’ contracting arrangements • the incidence of non-compliant building work is reduced • builders will not be allowed to contract unqualified and unregistered painters. This means more opportunities for qualified and skilled painters • less risk to the public. Qualified painters understand how to identify lead paint and asbestos, and treat it correctly.
WILL THE REGISTRATION SCHEME BE ENFORCED? The VBA launched its Proactive Inspection Program (PIP) in 2015, which involves checking building and plumbing works under construction throughout Victoria. The purpose of PIP is to reduce non-compliant building and plumbing work in Victoria. The VBA monitors and regulates registered building practitioners, and in some cases disciplinary action is undertaken that results in a building practitioner being deregistered. The show cause process is the VBA’s mechanism for holding building practitioners to account for their performance when they fail to meet community expectations. This might be by doing unlawful things or by simply not doing good enough work, or both. The process also allows the VBA to remove building practitioners who are no longer fit and proper persons (that is, they are unsuitable). The process protects consumers from building malpractice and makes sure building practitioners comply with the Building Act 1993 (the Building Act) and related laws such as the Domestic Building Contracts Act 1985 and the Building and Construction Industry Security of Payment Act 2002. The show cause process initiates disciplinary action against currently registered practitioners. Breaches of the Building Act and other legislation by people other than registered practitioners are dealt with by criminal prosecution. See the latest prosecutions
WHAT DO I HAVE TO DO? Here’s what the government is saying so far. To be a registered trade in Victoria, you have to submit an application to the Victorian Building Authority (VBA). You need to choose the category of domestic builder – limited (DB-L) registration. It’s not confirmed yet, but
it’s also likely that a registered trade will need to have a o=certificate or trade qualification such as Certificate III Painting and Decorating. Currently any painters applying for registration are required to be qualified, and we expect this to continue. The National Painting and Decorating Institute has also recommended to the Department that minimum requirements should also include qualifications in business and estimating, such as in Western Australia. An options paper will be released for consultation and there will be opportunities for engagement. Further details will be provided shortly.
WHAT WILL HAPPEN AFTER THE NEW SCHEME IS INTRODUCED? A period of one year will be given after the start of the new scheme to apply for provisional registration or a provisional licence (‘the application period’). • If a person applies during the application period they can continue working until their application is decided. • The offences inserted into the Building Act will not apply to them during this period. • If the applicant has the required qualifications, knowledge and/or experience they may also apply for a full registration or a full licence during the application period.
WHAT WILL HAPPEN AFTER THE APPLICATION PERIOD? After the application period expires, new entrants who want to perform painting and decorating work (who haven’t applied for a registration or licence during the application period) will need to have full registration or a full employee licence. • A provisional registration or a provisional employee licence will not be available. • The offence provisions within the Building Act will begin.
2020 February Issue | 43
HOW LONG WILL PROVISIONAL REGISTRATION OR A PROVISIONAL LICENCE LAST?
has not released the details on the final cost. We will continue to lobby the government to keep it affordable.
Provisional registration and provisional licences will last for five years.
HOW THE NATIONAL PAINTING AND DECORATING INSTITUTE CAN HELP
During this period (‘the qualification period’), provisional registration holders will need to upgrade to a full registration and employees will need to upgrade from provisional to full employee licences.
The new changes are going to impact trades working as subcontractors who are not registered. The changes may impact your ability to work in your current capacity.
A period of one year, after the commencement date for each implementation stage, will be given to apply for provisional registration or a provisional licence. I A provisional registration or licence is a stepping stone to upskill to a full registration or licence. Provisionally registered trade contractors and provisionally licensed employees are expected to upgrade to full registration or a full licence within 5 years. After expiration of 5 years, a full registration or licence is required to carry out painting and decorating.
WHAT IS THE DIFFERENCE BETWEEN REGISTRATION AND AN EMPLOYEE LICENCE? Both registration and the employee occupational licence give the right to physically perform prescribed work. But registration may also give the right or duty to perform certain business functions – for example, to contract for building work. An employee occupational licence does not relate to performing business related functions. Basically, to be a painting contractor or sub-contractor you will need to be registered. If you are licensed but not registered you will only be able to work as an employee for a contractor.
WHAT ABOUT APPRENTICES AND TRAINEES? There will be no offence if prescribed building work is performed by apprentices and trainees, provided the person is employed under a training contract to carry out the prescribed building work. The employer must be approved by the Victorian Registration and Qualifications Authority to employ that person under the training contract (as per section 5.5.7 of the Education and Training Reform Act 2006).
HOW MUCH WILL IT COST? The National Painting and Decorating Institute has recommended that registration should cost no more than $200 per year to maintain registration. The government
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The National Painting and Decorating Institute have dedicated licensing and registration specialists who are here to help. Our staff can give you advice and information on your next steps to getting your licence or registration.
PAINTING AND DECORATING CERTIFICATES If you are already qualified and hold a trade certificate from completing and apprenticeship, or have completed Certificate III in Painting and Decorating, we recommend waiting until further details are released before doing anything about registration. We have recommended to the government that these qualifications should be recognised for registration purposes. What does the word ‘qualified’ mean? It means you have completed a formal course and assessment of your skills and knowledge at a government recognised college. Simply having ‘experience’ is not enough to be ‘qualified’. Painters who are qualified have a certificate from TAFE or a Registered Training Organisation to confirm their competence.
RECOGNITION OF PRIOR LEARNING (RPL) If you are not qualified and have less than 4 years experience in the industry we recommend completing an apprenticeship with an employer, so you can learn the trade properly. If you are not qualified but have more than four years experience you can apply for Recognition of Prior Learning to achieve Certificate III in Painting and Decorating. This is a process where you will be tested on your existing skills and knowledge, and given credit for what you are already competent in. There are usually some subjects that painters need gap training or upskilling in. These subjects usually include wallpapering, colour matching, decorative finishes, and safe lead paint testing and removal. It is very common for even experienced painters to need training in these subjects. The college conducting the RPL assessment must provide you with training in any subjects you need training in before issuing you the qualification.
BEWARE OF DODGY COLLEGES! There are some colleges that are advertising RPL Skills Assessments for Certificate III Painting and Decorating to get a ‘Victorian Painters Licence’. We urge all painters to be careful about who they enrol with. Always ask the college if they provide training or upskilling in the subjects such as wallpapering or lead paint management. If the college does not, do not enrol! There have been many cases of painters enrolling in RPL courses only to find out that they need gap training and are forced to pay extra to complete, or they fail to complete the course. Only enrol in colleges that have training facilities and assessors based in Victoria who can help you complete the qualification. The National Painting and Decorating Institute can help you find a college that is recognised by the government for registration purposes and offers quality assistance and training.
MORE INFORMATION The National Painting and Decorating Institute can keep you up-to-date with everything you need to know about these new laws. We’ll be attending trade nights and visiting paint stores around Victoria over the coming months to keep the industry informed. Subscribe here to receive emails with important updates and opportunities. ---------------------------------------------------------------------------
Daniel Wurm
National Painting and Decorating Institute.
2020 February Issue | 45
The Industry Idiots
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IMPORTANT
Contacts
Aussie Painters Network www.aussiepaintersnetwork.com.au
Ph. 0430 399 800
National Institute for Painting and Decorating www.painters.edu.au
Ph. 1300 319 790
Australian Tax Office www.ato.gov.au
Ph. 13 72 26 / Ph. 13 28 65
Award Rates www.fairwork.gov.au
Ph. 13 13 94
Fair Work Building & Construction www.fwbc.gov.au
Ph. 1800 003 338
Mates In Construction www.matesinconstruction.com.au
Ph. 1300 642 111
Workplace Health and Safety Contacts Comcare WorkSafe ACT Workplace Health and Safety QLD Victorian WorkCover Authority WorkCover NSW SafeWork SA WorkSafe WA NT WorkSafe WorkSafe Tasmania
www.comcare.gov.au www.worksafe.act.gov.au www.worksafe.qld.gov.au www.vwa.vic.gov.au www.workcover.nsw.gov.au www.safework.sa.gov.au www.commerce.wa.gov.au/WorkSafe/ www.worksafe.nt.gov.au www.worksafe.tas.gov.au
1300 366 979 02 6207 3000 1300 362 128 1800 136 089 13 10 50 1300 365 255 1300 307 877 1800 019 115 1300 366 322
Cancer Council Australia ACT NSW NT QLD SA VIC WA
www.actcancer.org www.cancercouncil.com.au www.cancercouncilnt.com.au www.cancerqld.org.au www.cancersa.org.au www.cancervic.org.au www.cancerwa.asn.au
(02) 6257 9999 (02) 9334 1900 (08) 8927 4888 (07) 3634 5100 (08) 8291 4111 (03) 9635 5000 (08) 9212 4333 2020 February Issue | 47
