Painting and Decorating Training Package The last chance to have your say
Your Mood is as Contagious as the plague... It is your duty to try and monitor your mood
Buying too much Stuff is driven by uncertainty Completion & Retentions Improve your processes around completion..
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眀眀眀⸀愀甀猀猀椀攀瀀愀椀渀琀攀爀猀渀攀琀眀漀爀欀⸀挀漀洀⸀愀甀
CONTRIBUTORS • Angela Smith • Anthony Forsyth
From the Editor
• Anthony Igra • Harjinder Singh • Jim Baker • Justin Kenardy • Leo Babauta • Monroe Porter • Nigar Sultana • Peter Whiteford • Rachael Langford • Robert Bauman • Sandra Price • Yeut Hong Tham
EDITOR Nigel Gorman
Hey Everyone,
Welcome to the 86th edition of the Aussie Painting Contractor Magazine. In this month’s edition you will find you have a last chance to have your say on the new Painting Training Package. The validation stage will end at close of business Thursday June 13, 2019. So, if you want to have your last say get in quick. We have been hearing that quotes and work have been slow for the last couple of months. Thankfully the elections are over and hopefully we can expect people to start getting some confidence, so they start picking up the phone and call wanting their houses painted. For the last couple of weeks, we have been travelling around training apprentices throughout regional areas of Qld, at the end of this month keep an eye out for us travelling up to Townsville and many towns in between. If you see us give us a wave or if you see us in a paint store come and say hi.
'Till next time, Happy Painting!!
EXECUTIVE EDITOR Caroline Miall GRAPHIC DESIGNER
Nigel Gorman
J. Anne Delgado
07 3555 8010
nigel@aussiepaintersnetwork.com.au
Advertise with us...
1800 355 344 07 3555 8010 info@aussiepaintersnetwork.com.au
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Contents How to make sure you DON’T LOSE YOUR QBCC LICENCE Safeguard Your QBCC Licence With Regular Bookkeeping
6
9
EGGING THE QUESTION: 12 Can your employer sack you for what you say or do in your own time?
17 Your Mood Is As Contagious as the plague…
CPC30611 Certificate III 18 in Painting and Decorating Buying Too Much Stuff is Driven By Uncertainty
20
YOUR CREDIT REPORT 23 is a key part of your privacy – here’s how to find and check it BUDGET 2019: What’s in it for Tradies?
26
More money in your own pocket rather than the Government coffers is always a good thing.
Completion & Retentions HOW TO MEASURE A ROOM
30 35
GETTING UNSTUCK
38
Hopkinson Painting
42
Industry Idiots
44
Important Contacts
45
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 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.
How to make sure you
DON’T LOSE YOUR QBCC LICENCE
Depending on who you ask, then the Queensland Building & Construction Commission (QBCC) is either bureaucracy gone mad or the best thing since sliced bread. A QBCC license holder who was unable or did not know how to meet the new QBCC reporting requirements might find his license cancelled or suspended. You can imagine how they might react... On the other hand, you could talk to a sub- contractor or even an average person or family who were glad that the QBCC laws and regulations exist, as that was the only thing which protected them from suffering major financial losses. From all accounts in the construction industry the last couple of years were very tough in Queensland, with a large number of the second-tier building companies going bankrupt. Then last year, the QBCC announced that new Minimum Financial Requirements (MFR) Regulation will
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commence on 1 January 2019. We’ve been spending a lot of time with our clients in the building industry to adjust their reporting routines and to make sure that they don’t violate their licensing conditions. Many tradies and building companies that are now affected are struggling to stay on top of all the financial reporting requirements they have to comply with. Often this leads to suspension or cancellations of licences. It really is crucial that licensees know about their responsibilities, or they could find themselves in trouble unexpectedly with QBCC and in a situation where all work has to stop.
How does Financial Reporting impact on your licence? Under the new laws, QBCC licensees who hold a contractor grade licence (within financial categories self-certifying 1 (SC1) to Category 3) will be required to submit financial information to QBCC by 31 December 2019. The financial information submitted must be no older than four months and provide more detailed financial information in the form of a ‘balanced scorecard’. Smaller companies (Categories SC1 and SC2) will continue to self-certify and will also need to report their Current Ratio of assets to liabilities.
Then there are the many other occasions that will require a license holder to report their financial information or show their continued compliance again, for example:
successful financial compliance reporting is having your business financial systems set up so that you can access the information you require at the time you need it.
• when the business Maximum Revenue requires adjustment the license holder needs to provide the self declaration form to QBCC. • mid-sized companies (Categories SC1 to Category 3) will continue be required to report decreases in Net Tangible Assets of 30% or more. • when your Professional Indemnity Insurance Policy expires • if the business doesn’t meet the required ratios of assets and liabilities
Clearly, the goal of the QBCC is to provide better oversight of the construction industry players. While different level license holders have different financial reporting requirements, we have found that many licensees are either not aware of, or overlook the licensing regulations that require them to produce and review quarterly management reports.
If you don’t comply with Minimum Financial Requirements (MFR) Regulation, your licence could be cancelled. Why robust financial business systems are the answer
No matter what category of QBCC licence you have, I know one thing with 100% certainty: When you have your business financials in order by running good systems, when you have a financial plan and stay
on top of your bookkeeping, no amount of QBCC licence conditions will cause you any sleepless nights. You will always be able to plug your business numbers into their reporting regime without a problem. If you are confused about the current QBCC licensing conditions and reporting requirements, feel free to arrange a FREE QBCC Compliance Check with me. Call my office on (07) 3399 8844, or just visit our website at www.straighttalkat. com.au and complete your details on our Home page to request an appointment. ---------------------------------------------Copyright © 2019 Robert Bauman. Call: (07) 3399 8844
Financial reporting to QBCC is fast becoming a specialist service niche. However, the basic ingredients for
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Safeguard Your QBCC Licence With Regular Bookkeeping Keeping your books up-to-date has become even more important now for tradies and anyone working in the construction industry, who is required by law to hold a QBCC licence to operate their business. Last year, the Queensland Building & Construction Commission (QBCC) has introduced new Minimum Financial Requirements (MFR) which came into play early this year. Starting from 1 January 2019 QBCC licensees need to provide financial information to the QBCC each year (as was the case prior to 2014). In addition, depending on their licence category, businesses will also be required to provide more detailed financial information in the form of a ‘balanced scorecard’. We’ve provided some general information in this article to highlight what it means for license holders of Categories 1 to 3. Not only do QBCC license holders have to report to the authority on a regular basis, there are certain trigger points where QBCC will again be asking you for a current financial report.
What bookkeeping has to do with your QBCC Licence Since the beginning of 2019, the QBCC has suspended many businesses for non-compliance with the MFR. It seems that the biggest stumbling block for business owners is the accurate reporting of maximum revenue and asset ratios. While it’s easy to complete a form and send it to the QBCC, it takes a well run financial system to be able to confidently project maximum revenue and report on asset values, because that’s what you are certifying to the QBCC. As a bookkeeper I can only imagine the heart ache and sleepless nights a cancelled or suspended license would be causing Queensland tradies and business owners. I can also tell you that the only way to avoid this is to keep your book work up-to-date and regularly reviewed (quarterly at the minimum). If you have not yet implemented cloud-based bookkeeping with a package like XERO for example, now is a good time.
With the real-time reporting features of a powerful online bookkeeping system you could literally save your QBCC licence. The changes to the QBCC financial reporting means that you need to be able to provide financial data on turnover and asset ratios at the drop of a hat. For example, an event outside the normal reporting period can require you to update your financial information with QBCC. The event could be expiration of your Professional Indemnity Insurance Policy or a variation by 30% or more in Net Tangible Assets. In order to spot a variation by 30% or more in Net Tangible Assets you absolutely need reliable financial data on revenue throughout the year. Plus, you’ll need an accountant, who is on the same page with you or your bookkeeper when it comes to monitoring your asset distribution and depreciation details.
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Financial Reporting for Category 1 and 2 Licensees
Financial Reporting for Category 3 Licensees
Depending on your licence category you will need to complete and lodge Self Certifying forms. Category 1 is for Trade Contractors only and requires you to certify that you will NOT exceed maximum revenue of $200,000, and that the business has at least $12,000 Net Tangible Assets.
Here the reporting requirements start to be more onerous. Instead of a 1-page form for Cat 1 and 2 licences, you now have to complete an 8-page form. The maximum revenue is up to $30,000,000 and the rules to calculate Net Tangible Assets are very specific.
On this form, which can only by completed and signed by the license holder, you need to acknowledge that you are required to maintain the above Net Tangible Assets at all times and not exceed the above Revenue in the reporting year without reporting it to the QBCC.
The QBCC is also very particular that the forms be completed diligently and might even reject forms that have small hand-written alterations, other than the completion of the spaces provided on the form.
If you hold a Category 2 license the maximum revenue is up to $800,000 and the business needs to have at least $46,000 Net Tangible Assets. For Category 1 and 2 licensees there is no immediate impact. You will need to submit your financial information to QBCC by 31 December 2019.
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need to know exactly what kind of assets to include or the asset and liability ratio could be wrong and may trigger a cancellation of your licence. We are bookkeepers who understand the QBCC requirements, but also the challenges tradies and contractors are facing to meet them. Our regular reviews and quarterly QBCC compliance check can help tradies have peace of mind, and save a little before getting their accountant involved.
What are the Reporting Challenges? If your business is experiencing a growth phase it’s especially important to keep an eye on your revenue. If you get a business growth spurt that tips you over the threshold of your current asset and liability ratios, you need to know about it, because you’ll need to report it to the QBCC. The other critical part is that you
Sandra Price
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2019 June Issue | 11
EGGING THE QUESTION:
Can your employer sack you for what you say or do in your own time? It probably wasn’t exactly how eggtossing activist Amber Holt thought her hit on prime minister Scott Morrision would go down. The egg bounced off his head. He cracked jokes about it. She’s been charged with common assault, and may yet lose her job for her efforts. “I’ve got to go to work, no comment,” she told media after the incident, with a Cotton On Kids lanyard visible around her neck. The clothing company has since confirmed Holt is a casual employee and that it is “investigating” the incident. “The Cotton On Group is disappointed to hear about yesterday’s incident involving one of our team members,” it said in a statement. “While individuals are entitled to hold their own opinions, we do not condone this behaviour and it does not align with our company values.” Does Cotton On, or any other employer, have the right to sack an employee for something they say or do in their own time? The short answer is, in many cases, yes – especially if the business can show the employee’s actions reflect badly on it. In this case the company might find Holt has breached her obligations as an employee to protect the company’s image.
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Amber Holt, with Cotton On Kids lanyard, after attempting to egg Scott Morrison on Tuesday, May 7, 2019. Mick Tsikas/AAP
EMPLOYMENT LAW Australian employment law requires that an employee cooperate with their employer, and not engage in any conduct that would undermine the business or bring it into disrepute. These are terms implied into every employee’s contract of employment by the common law. Over the past 30 years or so, the courts have increasingly interpreted these principles to enable employers to control the private or out-of-hours conduct of employees. You could therefore find yourself lawfully sacked for untoward behaviour at a work Christmas party, or for posting derogatory comments about the business on Facebook – so long as your employer can show there is a sufficient connection to the employment.
That connection will exist where, for example, drunken behaviour at a party affects your workplace relationships (or constitutes sexual harassment), or where your “private” Facebook post damages the employer’s reputation. This is why Fair Work Australia upheld a Good Guys franchise dismissing an employee because of his Facebook comments about colleagues, including one interpreted as a threat. On the other hand Fair Work ruled lighting company LED Technologies had unfairly dismissed an employee for “rude and vulgar” Facebook comments, which he argued was about his mother’s workplace, not his own.
CODES OF CONDUCT Employers have also sought to extend the common law obligations of employees through company policies and codes of conduct. Typically these documents impose very high standards of employee behaviour in a wide range of situations. The employer is then able to discipline or dismiss you for behavioural breaches, even outside the workplace or work hours, especially where (as is common) you have signed a contract in which you agree to observe company policies.
a political opinion and had been discriminated against for exercising that right. The parties reached a settlement out of court, so we didn’t get a ruling on a few important issues. Did the tweets amount to “political opinion”? If they did, would antidiscrimination laws have trumped employer policies?
This case was a bit different, though. The university argued Ridd breached its code of conduct. But the court decided Ridd had a right to intellectual freedom under the university’s enterprise agreement (a common feature of academic employment).
In the past five years we have seen many examples of the collision between “corporate values” and employees’ right to a “private life”. In 2015, SBS dismissed sports journalist Scott McIntyre for tweeting on Anzac Day a series of comments critical of Australia’s obsession with the Anzac legend. McIntyre’s Twitter account identified him as an SBS employee, and he had more than 30,000 followers. SBS sacked him the next day on the grounds his “disrespectful” comments breached the public broadcaster’s code of conduct and social media policy. McIntyre contested his dismissal in the Fair Work Commission. He argued he had a legal right to express
One of Scott McIntyre’s offending tweets.
Read more: Anzacs behaving badly: Scott McIntyre and contested history
Last month, the Federal Circuit Court ruled James Cook University had unlawfully dismissed a physics professor, Peter Ridd, for making public comments critical of university colleagues for their research on the effects of climate change on the Great Barrier Reef.
Later this year the High Court will consider an appeal by Comcare, the federal workers’ compensation agency, against an Administrative Appeals Tribunal ruling that the Department of Immigration and Border Protection unfairly dismissed public servant Michaela Banerji in 2013 for (anonymously) tweeting comments critical of the federal government’s immigration policy.
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The tribunal determined Banerji’s right to make such comments was protected by the implied constitutional freedom of political communication. Her dismissal therefore constituted unlawful administrative action. The tribunal likened seeking to control the anonymous political comments of a departmental employee to the Orwellian notion of “thoughtcrime” in 1984. Read more: Is liking something on Facebook ‘protected political speech’? It depends
In 2017 the Australian Public Service Commission was widely criticised for issuing a new social media policy seen to intrude excessively on the right of government employees to engage in free speech. And of course we’re now witnessing the Israel Folau case. A Rugby Australia panel this week decided he breached the players’ contract
through his social media posts critical of homosexuality. It is yet to decide on a penalty but if he’s sacked, I can definitely see this one being challenged, Folau arguing discrimination on the basis of his religion.
EMPLOYER’S PREROGATIVE Cotton On’s employee code of conduct is not publicly available – possibly because of the adverse publicity it received in 2015, when it was revealed its code required employees to “keep it real” and observe other company values like being “fun”, “ethical” and “entrepreneurial”. However, I expect the code of conduct would include language broad enough for Cotton On to argue Holt has engaged in misconduct that
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as damaged its public reputation. An important factor here is that she is charged with high-profile criminal behaviour. She might try to argue she was expressing political views, protected by discrimination law, but this doesn’t look like the right “test case” to win that argument. Only where there are clear protections of employee free speech (such as for academics) is the steady march of employer policies controlling employees’ private conduct likely to be halted. Unfortunately most of the Australian workforce is not covered by these protections. Anthony Forsyth
Professor of Workplace Law, RMIT University
2019 June Issue | 15
Your Mood Is As Contagious
AS THE PLAGUE…
Uh oh! You’ve started the day off ‘waking up on the wrong side of the bed’ and it’s gotten you in a bad mood. Perhaps there was an event that triggered your mood, or maybe you’re simply just having a down day (you’re only human). One thing is for sure though, at this point, putting on a happy face and going about your day is the last thing you feel like doing. But, it’s exactly what you NEED to do, if you want to have a successful painting business. “20-30% of business performance is determined by the mood of your employees. The number one predictor of their mood is their leader. ” – Daniel Goleman As the owner of your business, your mood is CONTAGIOUS. Your bad mood will spread to your employees like the plague. If you as the business leader, show your bad moods, are unmotivated, and communicate aggressively or negatively towards your employees, you are encouraging your team to act the same way. Meaning they will be less motivated, increasingly disengaged, and their productivity levels will decrease. It seems like a big ask of you to be positive and happy 24/7. Things happens in life that just don’t allow for this optimism.
4. Eat healthily and ensure you’re getting enough sleep and exercise. These are simple activities that everyone underestimates the mood-boosting benefits from!
However, you have responsibilities as a leader! So it is your duty to try and monitor your mood (so your team isn’t negatively affected) using these strategies... 1. Don’t act in the moment! If something happens that gets you in a bad mood, don’t react! Remove yourself from the situation and consider everyone’s perspective on the situation. Only then should you decide how you will approach the situation. 2. Learn how to read the mood of your staff. If you think they are feeling down, their mood probably won’t change by being upbeat and positive around them. In fact, it might worsen. Instead, speak positively but gently. Monitor yourself to mirror their pitch and actions without being negative. 3. Always look for the good in people. If you look for the good in people you will be much happier because there will be less that annoys you about them. If you show appreciation for particular traits it will also encourage employees to express more of these traits.
5. When the business, yourself, or individual employees have successes you must celebrate them. All together. 6. When you walk through into the office or onto a job site, leave negativity behind. Become the leader that you are, a happy, upbeat, smiling one! We know it’s hard to believe that something so simple has such a large impact on your trade business’s success. But it’s an easy fix! We challenge you to actively apply these tips and see the difference not only in your team but also in the way you feel! Interested in learning more tips on how to lead your business to success? Check out Episode 10 of The Tradie Show, ‘How To Become A Great Leader For Your Trade Business’! CLICK HERE to gain FREE access!
Angela Smith
Co-founder – Lifestyle Tradie
“Helping Trade Business Owners Fast-Track Financial & Lifestyle Success”
2019 June Issue | 17
CPC30611 Certificate III in Painting and Decorating
This projects is at validation stage. The latest version of the qualification and units of competency are available for stakeholders to ensure that their content and structure meet your industry’s needs. The validation stage will end at close of business Thursday June 13, 2019. This review has been guided by a Technical Advisory Group (TAG) and has received feedback and contributions from industry practioners and teaching networks as well as State Training Authorities.
The proposed packaging rules are for 29 units of competency, composed of 26 core and 3 elective units. This link will take you to the relevant project page on the Artibus Innovation website, where you will find the components for downloading as well as a feedback tool. We look forward to hearing from you and to proceeding to the endorsement stage of this project
• CPCCPD3035 Prepare uncoated surfaces for painting • CPCCPD3036 Work safely to encapsulate non-friable asbestos in the painting industry
KEEP IN TOUCH Please keep an eye on our website for information about project consultations and technical advisory group nominations, progress reports and invitations to participate.
and minor title changes have been made to clarify the intended outcomes of the units of competency.
373 Elizabeth Street, North Hobart, Tasmania 7000 03 6218 2841 |
Two new units have been developed:
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50 YEARS A HOUSE PAINTER This book contains 36 topics of industry related knowledge and information which will help you in the way you operate your business. Topics under headings of; Business Checklist, Staff, Marketing and Sourcing Customers, Professional Behavior, Successful Operation and Looking Ahead. Highly recommended by Jason Osborn, Dulux Business Development Executive as; ‘A very easy interesting read, that combines industry facts and great topics.’ SIGN UP NOW
Buying Too Much Stuff is Driven By Uncertainty “If you are invested in security and certainty, you are on the wrong planet.” ~Pema Chodron Eva and I and our two younger kids are in the process of moving back to California from Guam, where we’ve been living with family for the last 9 months. As we pack our stuff, get some stuff ready to ship to California, and donate other things to charity … it is a great time to reflect. Why do people have so much stuff? Even though we have relatively little compared to most, we’ve still managed to accumulate too much, from getting gifts from other people to buying necessities (and nonnecessities) along the way. Stuff just piles up over time — that’s the nature of stuff. But most of it is not necessary. Most of our stuff, we buy because of one feeling: the feeling of uncertainty. This is the underlying groundlessness, shakiness, insecurity we feel about the future and the present moment. It’s the uncertainty we feel all day long, every day, to varying degrees. It’s what causes us to feel fear, stress, anxiety, worry, even anger. It’s what causes us to procrastinate and put off our healthy and productive habits. The feeling of uncertainty is the root of our buying too much stuff.
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Think about these examples: • You are going on a trip, and you’re feeling a bit nervous about it, so you do research and buy a bunch of stuff to take with you to help you feel more secure, prepared, certain. You’re going to attend a conference, and it brings up some anxiety, so you get some gear to help you feel more prepared. • You get into a new hobby, and don’t know what you’re doing so feel a lot of uncertainty, and do a ton of research for days, buying everything you can possibly think of to be fully prepared. • You are hosting a social gathering and this is giving you some stress, so you buy a bunch of things to make sure the party goes as well as you can hope for. • You are feeling a lot of disruption and uncertainty in your life, and find yourself procrastinating on things while doing a lot of online shopping. • You are feeling uncertainty about yourself, about your looks. To help with that, you buy a lot of nice clothes and gear to make you feel better about yourself. I could go on with endless examples, but you get the idea. Uncertainty brings with it an urge to get certainty, control, preparedness, security. And so we buy stuff to try to get that feeling.
The Futility of Shopping to Deal with Uncertainty We don’t like the feeling of uncertainty and insecurity – we try to get rid of it as soon as we can, get away from it, push it away. We have lots of habitual patterns we’ve built up over the years to deal with this uncertainty and insecurity … and buying things is one of the most common, other than procrastination. Here’s the thing: it doesn’t actually give us any certainty or security. We buy things and we’re not really more prepared, in control, or secure. We hope we will be, and yet the feelings of uncertainty and insecurity are still there. So we have to buy some more stuff. We’re looking for the magical answer to give us control and security, but it doesn’t exist. Life is uncertain. Always. It’s the defining feature of life. Read the quote from Pema Chodron at the top — it says it all, we have to accept the uncertainty of life. And in fact, this is the answer to our drive to buy too much stuff — if we lean into the uncertainty, embrace it, learn to become comfortable with it, we can stop buying so much. We can learn to live with little, sitting with the uncertainty of it all.
Here’s how to practice with it The Practice of Opening to Uncertainty, to Live with Little instead of buying something: Imagine owning very little, living in a spare room, eating simple whole food, not being involved in social media, just working, reading, walking, spending time with loved ones. Meditating, drinking tea.
• Notice you have the urge to buy something (or procrastinate, get control of everything, etc.). • Notice that underlying the urge is a feeling of uncertainty, that you don’t want. • Instead of rushing to follow your It’s a life of very little, urge to buy something, pause and just sit with the uncertainty for a and is beautiful in its minute or two. • Turn your attention to the physisimplicity. cal feeling of uncertainty in your But then uncertainty comes up, as body. Where is it located? What it inevitably does. You have a trip, does it feel like? you have to go to a party, you have • Stay with the feeling and get rea new kind of project to take on, you ally curious about it. are starting a new venture. You’re • Relax around the feeling. Be generous with it, giving it compassion, feeling insecurity and uncertainty. openness, gratitude, love.
• Notice that this is just a sensation, just an experience, nothing you need to run from, hate, or push away. You can be with it, even open up to it. With this practice, you don’t need to fill your life with more stuff. This is my practice right now, as I see the effects of too much stuff that’s come into my family’s life. Sit with the uncertainty, embrace it, and fall in love with the groundlessness of my life.
Leo Babauta
a successful ‘simplicity’ blogger and author from California, the creator of top 25 Blog,
ZEN HABITS
2019 June Issue | 21
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吀栀攀 猀攀挀甀爀椀琀礀 昀漀爀 琀栀椀猀 瀀爀漀搀甀挀琀 椀猀 瀀氀愀挀攀搀 瘀椀愀 䰀氀漀礀搀猀 漀昀 䰀漀渀搀漀渀 愀猀 眀攀氀氀 愀猀 漀琀栀攀爀 䄀甀猀琀爀愀氀椀愀渀 愀甀琀栀漀爀椀猀攀搀 椀渀猀甀爀攀爀猀⸀ 㠀 ㌀㔀㔀 ㌀㐀㐀 椀渀昀漀䀀愀甀猀猀椀攀瀀愀椀渀琀攀爀猀渀攀琀眀漀爀欀⸀挀漀洀⸀愀甀 眀眀眀⸀愀甀猀猀椀攀瀀愀椀渀琀攀爀猀渀攀琀眀漀爀欀⸀挀漀洀⸀愀甀
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YOUR CREDIT REPORT is a key part of your privacy – here’s how to find and check it The Australian government encour- dling of personal information about ages citizens to protect their privacy individuals. The Privacy Act has very strict rules, reflected in 13 Australand personal information. ian Privacy Principles, that control Most of the tips provided by the Of- the way information about you is fice of the Information Commission- accessed, used and corrected. er are pretty intuitive – know your rights, read privacy policies, use se- The Privacy Act gives you the right to find out what’s in your credit recurity software and more. port and change any incorrect inforBut you might be surprised to know mation in your report. “check your credit report” is also on As well as stopping others from stealthe list of recommended actions. ing your identity, having an accurate Checking your credit report, prefer- credit report is also crucial if you want ably annually, is a good way to ensure to borrow money. For example, when incorrect information is not listed applying for credit such as a home against you. Having the right informa- loan, the lender will obtain your credtion in place can protect you against it report to assess your credit worthiidentity theft, so is an important com- ness and also your ability to repay the loan. You really don’t want your appliponent of privacy in this sense. cation for a home loan to be knocked The Privacy Act 1988 is an Austral- back because of errors in your credit ian law which regulates the han- report, do you?
How to check your credit report The first step is getting a copy of your credit report. This can be obtained free from credit reporting agencies such as Equifax, illion and Experian. Tasmanians can also refer to the Tasmanian Collection Service. Make sure you spend a bit of time looking carefully for this free option – it is there, but can sometimes be a little buried. The report will be sent to you in about ten days. If you are in a hurry and need it faster, you can pay between A$30 to A$50 dollars and the credit report will arrive in a day or two.
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Look at the details Once you have your credit report, there are certain things that you must check. First, as a minimum, check that your personal details such as name, date of birth, employment and driver’s license or other identifying documents are correct. Second, have a look at your credit history in the report. This will include details of all credit or loans that you applied for, any overdue payments more than 60 days for which default actions have been initiated, and any other credit infringements. Such credit infringements can be listed on your credit report for between five to seven years, depending on their severity. Third, examine your repayment history to determine whether you missed any payments on due dates.
Last, check whether any recorded serious adverse credit activities such as bankruptcies, court judgements and debt agreements are correct and accurately reflect your circumstances. What happens if it’s wrong? You are entitled to request changes to any incorrect listing and this should be done free for you. In the first instance, you can contact the credit reporting agency directly and they will be able to fix small errors immediately. For other errors originating from a credit provider such as a bank, they will sometimes even contact the bank on your behalf.
If they refuse, you can then go to an independent dispute resolution scheme, such as the Australian Financial Complaints Authority. If all else fails, you can also contact the Office of the Australian Information Commissioner who will deal with your complaint if it is not older than a year. So, what are you waiting for? It really is in your best interest to check your credit report, and no one else can do it for you. Harjinder Singh
Senior lecturer, Curtin University
Nigar Sultana
Senior Lecturer, Faculty of Business and Law,
However, if you have to contact the Curtin University credit provider yourself, do so and Yeut Hong Tham explain why the listing is incorrect. Lecturer, Curtin University Most often, they will fix the mistake.
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
24 | Aussie Industry Painters Network Specialist Mentoring for Australian Apprentices (ISMAA) is funded by the Australian Government Department of Education and Training.
2019 June Issue | 25
BUDGET 2019: What’s in it for Tradies? Another year, another budget… But be depreciated to zero immediately what does it actually mean for you rather than over a number of years. as a tradie or trade business owner? Result: WIN Every year since 2015 we’ve been putting together a summary of the Tax Cuts changes that we believe are most relevant. Being an election year, it’s no surprise the Government is throwing This year there are quite a few around a bunch of tax cuts to keep changes that will impact on tradies voters happy. and trade business owners, and we’ve summarised them below… Last year the Government introduced a tax offset which meant taxpayers Instant Asset Tax Write-Off earning up to $90,000 could receive up to $530 extra back at tax time. Kicking off with some good news, the Government is increasing the This year it has been more than amount a business can instantly doubled to $1,080 and will apply to write-off from $25,000 to $30,000 the 2018/19 financial year. for a single asset. Our ‘How much do tradies earn’ report This scheme was originally intro- last year revealed that the average duced in 2016 and has proven to be taxable income for a self-employed very popular with tradies and small tradie was $81,636. With that being the case, most tradies can expect to business owners in general. get some level of tax offset when they This scheme doesn’t actually mean lodge their next tax returns. you get any more money back in your pocket, but it does mean you Looking further ahead, tax brackets up get it years earlier as the asset can to $200,000 a year may be reduced
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from 32.5% to 30%. Whilst a $200k+ taxable income isn’t the norm for tradies, it’s not completely unheard. More money in your own pocket rather than the Government coffers is always a good thing. Result: WIN
Apprenticeship Funding The Government has announced a $525 million skills package to help create 80,000 apprenticeships. Each apprentice will receive a payment of $2,000 when they hit key milestones, whilst employers can receive an incentive payment of $8,000. It’s unclear exactly which apprenticeships will benefit, however the ABC reports that trades include (but are not limited to) bricklayers, carpenters and plumbers. Better funding for apprenticeships can only be a good thing in this industry. Result: WIN
倀甀戀氀椀挀 氀椀愀戀椀氀椀琀礀 椀渀猀甀爀愀渀挀攀 昀爀漀洀 樀甀猀琀 ␀㐀 㜀 ⴀ 䤀渀挀氀甀搀攀猀 挀漀瘀攀爀 昀漀爀 猀瀀爀愀礀椀渀最 ⴀ 唀渀爀攀猀琀爀椀挀琀攀搀 栀攀椀最栀琀猀 漀瀀琀椀漀渀⨀ ⴀ 䌀漀瘀攀爀 昀爀漀洀 ␀㔀洀 琀漀 ␀㈀ 洀 ⴀ 䴀漀渀琀栀氀礀 瀀愀礀洀攀渀琀 漀瀀琀椀漀渀猀 ⴀ 䔀愀猀礀 漀渀氀椀渀攀 愀瀀瀀氀椀挀愀琀椀漀渀
倀爀攀洀椀甀洀 漀昀 ␀㐀 㜀 椀猀 戀愀猀攀搀 漀渀 ␀㔀Ⰰ Ⰰ 瀀甀戀氀椀挀 氀椀愀戀椀氀椀琀礀 椀渀猀甀爀愀渀挀攀 瀀漀氀椀挀礀 瀀愀椀搀 愀渀渀甀愀氀氀礀 昀漀爀 愀 瀀愀椀渀琀椀渀最 戀甀猀椀渀攀猀猀 椀渀 儀䰀䐀 眀椀琀栀 漀渀攀 洀愀渀甀愀氀 眀漀爀欀攀爀⸀ ⨀ 䄀 㔀洀 栀攀椀最栀琀 氀椀洀椀琀 愀瀀瀀氀椀攀猀Ⰰ 戀甀琀 挀愀渀 戀攀 爀攀洀漀瘀攀搀 昀漀爀 愀渀 愀搀搀椀琀椀漀渀愀氀 瀀爀攀洀椀甀洀⸀
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㈀⸀ 2019 June Issue |
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夀漀甀 琀愀欀攀 琀栀攀 猀愀洀瀀氀攀猀 愀渀搀 猀攀渀搀 琀栀攀洀 琀漀 匀礀搀渀攀礀 䄀渀愀氀礀琀椀挀愀氀 䰀愀戀猀⸀ 吀栀攀 氀愀戀 愀渀愀氀礀猀攀猀 琀栀攀 猀愀洀瀀氀攀 愀渀搀 眀攀 攀砀瀀氀愀椀渀 琀栀攀 爀攀猀甀氀琀猀⸀
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More Construction Work A $100 billion infrastructure spend has been announced nationally, which mainly benefits Victoria and Queensland. Being infrastructure means there will be plenty of labour required to keep things moving. With residential construction coming off the boil, this extra work will come at a great time. Result: WIN
Final Thoughts
There aren’t too many losers in this year’s budget, which is really not Tradie Dads and Mums surprising given how close we are Many young tradies have children to a federal election. in child care, and if you have them in care every day of the week you At Trade Risk we specialise in business know you’ll probably hit the num- insurance, not accounting. We might have a good handle on the accounting ber of hours threshold. side, but it’s definitely not our thing! The Government is helping by allowing an extra 15 hours per week We strongly recommend you speak of subsidised care. The catch is that with your own accountant about your the increase only applies to three personal circumstances. If you don’t have one, then you should follow the year old children. link to check out our tradie accountant guide. Result: WIN – If your child is 3yo
www.traderisk.com.au 1800 808 800
2019 June Issue | 29
Completion & Retentions Without doubt the messiest part of projects we see is the end. Rarely is the completion processes of a project followed as per the contract. If there is no contract then no one brings any formality to the end of works. Very often the work ends because the parties fall into dispute and one party walks away, or is terminated. When the dust settles, there are disputes over payment, work incomplete, retentions, liquidated damages, and delays. I thought it would be useful to look at the many factors around the completion of a project for you to consider, with view to tightening up your processes and getting paid for the work done. The most relevant way to do this is to look at the most common reasons for nonpayment at completion, and how you can avoid them. This breaks down further into three reasons:
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Not to ‘pay for work done’ Not to pay for retentions’ Reasons to ‘back charge’.
Not Paying for Work Done Work is incorrectly valued: The client will argue at the end that some part of the works was over charged and so will seek to deduct the alleged overcharge from the final payment. You must provide at the end of the works a reconciliation of the whole project, no matter how small. Include a copy of the contract or agreement along with any agreed rates. If you have done work adopting reasonable or market rates you should have had those approved prior, but in any case if your client has accepted and paid on those rates in previous claims it makes their reasoning much weaker.
Work is Defective: The client will often say that works are defective when no issue with defects was raised during the works. When you reach completion you should invite you client to inspect the works and create a defect list and rectify quickly and get a sign off. Doing this forces your client to commit to defects if any, upfront; rather than leave the issue to fester for your final claim. If you tackle it head on it will be to your advantage. Once committed to a list of defects it is very hard for your client to later argue for a while lot more defects. Another way to deal with it is to invite a court accredited expert to prepare a report on the works. This may cost $1500 but is worth it in many situations. That way your client can’t invent new defects. The expert’s view will prevail.
Work was Done by Others: The client will argue that some of the work was not done by you, but by another contractor engaged by the client. This is either true or not. If it is true then you need to value and quantify what work was done by the other contractor as your client will often overstate this amount. Send your valuation to the client and incorporate it into your final claim as a deduction. If it not true then it must be rejected in writing immediately. These kinds of issues may need to be adjudicated to get resolved.
Not Paying Retentions Work is not Complete: The client will argue that the work is not complete and this will arise from how ‘Complete’ or ‘Completion’ is defined in the contract. Often contracts will say work is only complete when it is defect-free. You must reject these definitions as a $2 defect can prevent $100 000 retention payment. Further the client can always say there is a defect for the hell of it. It is far better to carefully consider a realistic definition of ‘Completion’ when you contract. One definition based around ‘complete such that the works can be used for their intended purpose barring minor defects’ and similar, are the more sensible definitions. If there is work that is not done then the client is right and you have not completed the work. So it is always worth going through your scope again to ensure all the work is done and all variations completed. No Formal Notice: Whether the contract requires it or not, it is always good practice to formally send
your client written notice that you consider the work complete, and the date that you think completion was reached. Too often no one has any idea what date completion occurred and yet it is central to retention claims and liquidated damages claims. If your client is not giving you a date then you provide notice of what date you think completion was achieved.
Reasons to Back Charge Defects: see the notes on Defects above. The two key issues to be settled are 1) Are there in fact defects? and 2) What is the realistic rectification cost? You will be best placed if you are controlling these issues. Otherwise your client will argue that there are defects when there are not, or value them at 10 times their true value. If you cannot get agreement here then engage an expert to report on the works. It will be well worth it. Liquidated Damages: By far the most abused provision of most contracts. The key to avoiding this issue is to claim Extensions of Time [EOT’s] when they occur in the correct documented manner. At time of contract look at what it says about claiming EOT’s, and have the fight early if they are too limiting. Your client will try to avoid issuing any EOT’s. You need to be on top of that by claiming them when it is fair to do so.
Also be aware that unless it can be shown that you alone prevented the works from completing on time then your client will find it hard to make liquidated damages stick. But to avoid the issue you need to be satisfies that the contract allows you enough time to complete and that you get the EOT’s you need during the work. Arbitrary Costs: The client will argue that because you didn’t do your work correctly or completely it incurred an array of costs, that you must cover. The key here is substantiation. This is either true or it isn’t, and if it is, your client had better be able to show how those costs relate to your work. Often these will be raised without any notice during the work. Unfortunately these disputes end up in adjudication most of the time. All you can do is reject them in writing and ask for proof. The above is but a brief summary of issues to manage when you complete work. Most contractors have slacked off by this time and there is almost no documentation about what happened at the end of work; yet it is the most important time, as now you are claiming that final amount which holds your profit. So get focussed, and improve your processes around completion.
Anthony Igra
For more great articles and video information about dealing with payment problems go to www.contractorsdebtrecovery.com.au
or call us on 1300 669 075
2019 June Issue | 31
POSTPONED
䴀礀 䠀漀甀爀氀礀 刀愀琀攀 䌀愀氀挀甀氀愀琀漀爀 䴀礀 倀愀椀渀琀 䌀漀猀琀椀渀最 䜀甀椀搀攀 34 | Aussie Painters Network
How to Measure
A ROOM
There are a few ways to arrive at pricing particular substrates. One of the most popular is by measuring the surface area; be it ceilings, walls, doors, frames, concrete floors, etc. Many painters do not know how to do this, but it is a simple calculation where you need to know four basic things to work it out: • The Area of the item to be painted. • The Time it will take to paint. • The cost and spread rate of the Paint. • The Hourly Rate you charge. I will use an example of a room that is 5 metres long by 4 metres wide and 2.4 metres high. It has one window frame measuring 1.8 metres by 1.2 metres, a standard door of 2.04 metres high and 0.820 metres wide, the surrounding door frame and a skirting. It has no furniture or carpet and requires standard preparation and two coats of paint. I will calculate the square metre area, the time it will take and how much paint you need for each substrate separately. The hourly rate will depend on the individual per-
son as every business has different expenses. To make it simple, I will use $60 as an hourly rate. GST is not included in any of these figures.
Ceiling (Standard gyprock/ plaster board) This is calculated by multiplying the length by width to give you the square metre area. 5m x 4m = 20sqm. The time taken will depend on each individual painter as some are faster than others, but the standard area suggested a person can paint is around 14sqm/hour. The material used will depend on the product, being a cheap budget paint to a premium line as the spread rate and cost will differ. Look at the back of the paint can and find how much it can cover per litre. I like to use the premium line so I will work on $11/litre and the spread rate of 15sqm/litre. There is 40sqm in total to paint (two coats, 20sqm x 2), divided by the suggested rate of 14sm/hr (again, this depends on your speed) which gives you a time of 2.86 hours. Multiply this by the $60 hourly rate and it comes to $171.60. The paint is calculated by dividing the spread rate, 15sqm/lt, into the ceiling area
of 40sqm. This totals to 2.67 litres of paint required. The cost of the paint is 2.67 litres multiplied by $11/lt which comes to $29.37. Now add the labour and paint together ($171.60 and $29.37) and the total is $200.97 to paint the ceiling.
Walls (Standard gyprock/ plaster board) This is achieved by adding the four walls together (called the perimeter) multiplied by the height. The formula can be either; length plus width, plus length plus width, multiplied by the height (5m + 4m + 5m + 4m x 2.4m = 43.2sqm) or, length multiplied by 2, plus width multiplied by 2, multiplied by height ((5m x 2) + (4m x 2)) x 2.4m = 43.2sqm). As we are painting two coats, the total to paint is 86.4sqm. You can take out an amount for the window and door openings but for this example I will leave it in. The suggested rate for time taken to paint a wall surface is the same as the ceiling surface (14sqm/h) and the spread rate, being a premium line, is also the same (15sqm/lt) but the cost of the paint will be slightly more expensive, so I’ll allow a slightly higher amount of $13/lt.
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We can now work out the cost of painting the walls the same way as the ceilings. 86.4sqm divided by 14sqm/h, multiplied by $60/ hr which gives you $370.20 for the labour. The cost of the paint is; 86.4sqm divided by 15sqm/lt multiplied by $13/lt which equals $74.88. The total to paint the walls is again by adding the labour and paint together ($370.20 and $74.88) which totals to $445.08.
Door (Standard 4 panel, one side only, two coats). 2.04m high x 0.82m wide (1.67sqm) x 2 coats = 3.35sqm. I will allow 6.7sqm that can be painted in one hour which includes time for removing and replacing the hardware. The labour to paint the door is 3.35sqm divided by 6.7sqm/hr multiplied by $60/hr which equals $30.00 for labour. The material for the undercoat and premium topcoat can be averaged at $13/ lt (I calculate this from a 10 litre purchase. If you have to buy a 1 litre can specifically for the job, then the cost will be more). If the spread rate is 15sqm/lt, your calculation for the cost of the paint will be; 3.35sqm divided by 15sqm/lt x $13/lt which equals $2.86. This gives you a total of $32.86 ($30.00 plus $2.86).
Door Frame A standard door frame is 5.1m in length (2 sides and top) with a width of about 25cm but as we are only pricing for one side, it will be around 12.5cm. This will be a total of 5.1/lm x 0.125m x 2 (2 coats) which equals 1.275sqm. 1.275sqm divided by a suggested rate of 4.9sqm/hr will give you a time of 0.26hrs, multiplied by $60/hr is $15.61. The material
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is 1.27sqm divided by 15sqm/lt multiplied by $13/lt giving a cost of $1.10. The total to paint the door frame is $16.71 ($15.61 + $1.10). You may have to add more to this price depending on which side of the door frame you are painting.
Window Frame (1.8 + 1.2 x 0.14) As with the walls, you add the four sides together. 1.8m + 1.2m + 1.8m + 1.2m which equals 6 lineal metres. I will use the standard width of 0.14m. This in square metres works out to be 0.84sqm (6m x 0.14m) or 1.68sqm for 2 coats. 1.68sqm divided by a suggested rate of 3.5sqm/hr will give you a time of 0.48hrs, multiplied by $60/hr is $28.80. The material is 1.68sqm divided by 15sqm/lt multiplied by $13/lt giving a cost of $1.46. The total to paint the window frame is $30.26 ($28.80 + $1.46).
Skirting (Standard height 0.10cm) The length of the skirting is the same as the perimeter of the walls minus the door opening of approximately 1 metre, so the length will be 17metres in total. The suggested amount of skirting (at the width of 10cm) that can be painted in one hour for one coat is 38 lineal metres. The labour cost will then
be 34/lm (2 coats) divided by 38/ lm (lineal metres) x $60/hr which equals $53.40. The square metre area is 17m x 0.10m multiply by 2 coats which equals 3.4sqm. At a spread rate of 15sqm/lt, the paint required will be 0.23 litres at a cost $2.99 (3.4sqm divided by 15sqm/lt x $13/lt). The cost of painting the skirting will then total to $56.39 ($53.40 + $2.99). Summary The total to paint this room will be a cost of $782.27 plus GST. The price could vary if there is furniture in the room or down-time if you need to wait for the paint to dry and need to make an extra trip. You may need to add your ‘smoko break’ too. If you would like to know more of the suggested rates for painting particular surfaces, you can find it in the membership area of the APN website. You can also purchase ‘My Paint Costing Guide’ on my website which is a fully automated program where you just enter the measurements. If you would like to learn more about estimating, you can enrol in the online ‘Advanced Estimating Course’ through www. painters.edu.au which I will be your trainer.
MyTools4Business.com
2019 June Issue | 37
GETTING UNSTUCK Change is never easy. This is particularly true for contractors and small business people. We work hard. We are busy. We are production oriented. Many of us believe that hard work will fix things but sometimes hard work with our shoulder to the grind stone just ends up giving us a sore shoulder. If your business is not offering the rewards you are looking for, you must strive to make changes. There is an old contractor joke about the wage and hour auditor who could not find any employees who were not being paid fairly and was talking to the owner of the business following the audit. The owner said, “There is one person with an issue. He works 70 hours a week, does not get overtime, rarely takes a vacation and makes very little per hour.” The auditor replies, “I need to talk to that person right away.” The owner replies, “You are, it’s me.” Why is change so hard? It all starts with our own attitudes. You just put in a 10 hour day and tomorrow looks the same, the thought of taking on the task of making things better can be overwhelming. When we are busy doing what is urgent,
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sometimes we forget that other things may actually be more important but just not as urgent. No one is screaming at you for a plan or new approach. People are screaming at you to finish their job, do an estimate or some other day to day task. Our network groups were founded on the concept of forcing people to get away from their business for 3 days to work priorities and build long term goals. That old saying, “fail to plan and plan to fail” really does hold true. Habits can also play a significant role. Think not? Try crawling into bed tonight on the side your significant other normally sleeps on and see how that goes. The problem is just because something is new does not mean it is wrong. So how can you change your business and make sure you are doing what you need to do? Start with an attitude rebuild. Denial and indecisiveness play a large role in getting people to change. “I will quit smoking next year, this year has been stressful.” “I am not into computers, email and stuff.” “Our customers don’t use the internet.” Start envisioning what your business would look like if you made a few changes.
Next build some new habits: 1,. Schedule just 3 hours of uninterruptable time every week to work on business goals that are not immediate. Turn your cell phone off and close your door. 2. Keep a time card on yourself and determine how you are spending your time. Delegate things that are not a priority to someone else and substitute business building and planning time. 3. Do a brand analysis. Search yourself on the web (from another computer) and see how you come up. Are you on all the free listings? Do a survey and see who would people recommend in your area? Are you in the top 3? Are your trucks wrapped and visible? 4. Visit other contractors from trades other than yours and see how they do things. Mechanical contractors, drywall, air conditioning, flooring, etc. will not see you as a competitor. See if your systems are ahead or behind theirs. 5. Consider hiring some younger people into the organization. Their computer and tech ability will be better and can bring some new insight. 6. Consider hiring a consultant or a best practices group to take a look at your business. If you do hire someone, make sure they are used to working with small businesses. May be you can find a successful contractor in a different trade and ask him to review his business and you review his.
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Last but not least, build a long term vision. Project what you would like your life and business to look like 10 years from now. Too many business owners think they will sell their business for a lot of money and retire. Such a plan includes two basics flaws. One, contracting businesses are hard to sell. Two, retired business owners get bored when they don’t have anything to do. Be realistic about your goals. Start with some simple questions.
Five years from now:
• What would you like your work week to look like? • What will your financial needs be at that point? • What changes in personnel will you have to make, to make this happen? • What outside interests do you have that will keep you happy and active?
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One of the things I really like about contractors is that they are alive, active and working at it each day. I was at social gathering recently and many of the people there were government workers. They were all counting the days until they retired and it seems that most of their life was about working to retire. They plodded to work each and every day with little control of their own domain. Heck, live to work and work to live. Enjoy both. Change your business. Make the changes you need to make it more rewarding.
Monroe Porter
is president of PROOF Management a firm that teaches seminars and runs networking groups for painting contractors.
www.proofman.com
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Hopkinson Painting Hoppy shares the secrets to his success
With more than 24 years’ experience in running a painting company, a thriving customer network based on repeat work and referrals, and a swag of industry awards, you could say Michael Hopkinson of Hopkinson Painting in Geraldton, WA, has learned a thing or two about the business. Michael has kindly agreed to share how he has created his success: making customers happy and team culture. So how does he do it?
Market and marketing
Hopkinson Painters focusses solely on the repaint market, painting a range of residential, commercial and heritage projects. Not only do repaints generate more net profit, word-of-mouth exposure is amplified in this sector. Michael explains “you get to deal with the customers, you get to interact with them and create a relationship with the client who then recommends you to other people.” His key marketing tool is “making customers happy”. “As soon as I meet our clients, I start working out what they want,” says Michael. “We do very little advertising - our work is almost all repeat business and word-of-mouth. “We also use site signs out the front and signage on vehicles and trailers, and we do occasional sponsored ads on Facebook to stay front of mind with our customer base.”
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Crew Responsibility
Michael says the main reason for his success is the culture of his crew. “They’re an awesome team who know how to paint and know the finish we need,” says Michael. “They take ownership and I can leave them to do their best. “They know the level of quality we need to achieve – because if they do a great job and the clients are 100% happy, that’s how we win more work.” Michael says he regularly discusses expectations with his team, right from the start. “It’s important to grow that culture,” says Michael. “I believe it’s setting the standard at the beginning. “Explaining, sitting down with the guys before they even start working with us and talking to them about the level of quality required, and why it’s important for business to thrive, about the things that must be done to achieve the quality we need. “I explain about taking responsibility. The things we overlook is the standard we are setting.”
Colour Help and Success
Hopkinson Painting won five awards at last year’s Master Painters and Decorators Australia Awards For Excellence, including: - Business of the Year [Small Business], which they’ve won three years running, and - Repaints: Commercial up to $100K, for heritage building Grantown Guest House in Geraldton.
One of the ways Hopkinson Painting helps clients, including Grantown Guest House, is with colour. Hopkinson Painting’s clients are offered a free colour consultation with an interior designer, Michael’s wife Anne Marie, and receive colour sample boards. He also provides digital overlays when his clients want help with visualising colours. “We offer it when people aren’t too sure how it will look, when people can’t visualise it. “Overlays give the client an idea of which way to go.” Grantown Guest House was a large job, which took two weeks to prep and 5 coats of paint, but the effort was worth it. “The clients are really happy,” says Michael. Rachael Langford Digital Overlay Australia rachael@digitaloverlay.com.au 0413 007 890 | 1800 015 935
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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
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
Cancer Council Australia ACT NSW NT QLD SA VIC WA
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