For you, winning the job is just the first step. The way you then deal with your clients – and any complaints – is equally important. Open and honest communication with your client is the key to success.

Building and renovating are complex tasks. Most of your clients won’t have a clue about the technical aspects of your work. But that won’t stop them from asking questions – it’s only natural. After all, the project may be costing them a lot of money.

This guide looks at the steps involved in adopting customer service standards that will help your business prosper. It covers your first contact with clients and includes the importance of contracts, home warranty insurance, effective complaint handling, and most importantly, good communication.

While most of the information is commonsense, the guide may raise some issues you have not considered before. Take time to read it.

Good service – big dividends

You work in a competitive industry. If you don’t provide good service, the going can get tough. Think about the times you personally have dealt with other enterprises only to be confronted by indifference and a lack of commitment to service. A slap-dash approach to customer service certainly doesn’t encourage repeat business.

Customer service is crucial to the success of any business – and the building industry is no exception.

Yet providing good customer service is simple. You don’t have to be a rocket scientist to set up a workable customer service system. And it won’t cost you an arm and a leg, either. With a little thought and commitment, customer service can pay

handsome dividends for your business. But it’s essential to believe in the importance of customer service – and practice what you preach.

What are you offering?

It pays to promote your business and advertising takes many forms.

It can range from a one-page flyer distributed through letterboxes, advertisements placed in local newspapers and increasingly, websites. No matter what format you choose, the information you provide must be accurate and truthful. When communicating with potential customers through advertising, the following details should be provided:

• details about your business
• description of the range of services provided
• price and technical specifications (if relevant)
• qualifications and experience
• possible examples of completed work.

By law, your licence number must be included in all advertising, stationery and signage. Only the person who holds a contractor licence can advertise for work (eg. you cannot put your individual licence number on an advertisement by your company). Accurate information helps consumers make informed choices.

First impressions

First impressions are lasting impressions. A positive initial contact is vital, whether it is face-to-face or over the telephone. It can be the deciding factor in winning or losing a client. Don’t blow it. Here are some helpful tips:

• be on time, if you’re running late, phone your clients
• be responsive, treat your clients as individuals and listen carefully to what they say

• use plain language when speaking to your clients
• don’t rush your clients, as building or renovating may be new to them, so they are on a sharp learning curve. In other words, give your clients time and understanding to think things through.

The importance of contracts

By law, home building work, renovations, additions, maintenance and swimming pool installations must be covered by a written contract between you and your client, the home owner where the contract price (including labour, materials and GST) exceeds $1,000.

Disputes can easily arise between builders and owners if there isn’t a written record of what has been agreed to. That is why written contracts are a legal requirement.

It’s always a good idea to provide your client with a copy of the contract prior to signing. This allows them time to read it through and ask questions. It is also helpful to take your client through the contract and discuss possible variations at this time. This helps to manage their expectations.

Before signing the contract, outline to your client the materials specified for the job (eg. type of door handles, doors, number of power sockets etc). Don't forget the importance of explaining to your client about the different termite management systems.

You must provide your client with a copy of the contract within five working days of signing the contract. If the contract price or the cost of labour and materials is more than $12,000 (including GST), the contract is subject to a cooling-off period of five clear business days. Within the cooling-off period, your client may cancel the contract.

The Office of Fair Trading produces two plain English contracts for residential building work. The simple, easy-to-understand contracts contain explanatory notes and instructions to give you and your client a step-by-step guide to the contracting process.

To find out more information or to buy contracts, call 13 32 20 or visit the Fair Trading website.

Home warranty insurance

If a contract involves more than $12,000 (including labour, materials and GST), then home warranty insurance is a legal requirement. Before commencing work or receiving any money up front (including deposits) you must provide your client with a certificate of home warranty insurance. This informs your client that in the event that anything happens (you become insolvent, die or disappear), the work to be done is covered for structural defects, failure to commence or finish work, or any breaches of statutory warranties.

Talk to your clients

Things don’t always go to plan. With something as complex as building, you have to expect the unexpected. For this reason, it makes sense to hold regular meetings with your clients to outline progress.

Two-way communication helps prevent disputes. Most home owners don’t understand the building process. For example, they may see a nail sticking out in a wall stud (which will be covered later) and ask about it. Use these regular contacts to educate and inform them. It will stimulate positive interaction between you and your client, and they will appreciate your efforts.

Be understanding

Having a house built or renovated represents a huge investment for your client. And it’s not just the money – emotions can run high as well. As a builder, your worst enemy is indifference. While it may be just another job to you, it means much more to your client. Put yourself in their shoes and try to understand their concerns and talk about them.

Finishing the job

At the completion of the job, builders often forget to inform their clients of some important points. This oversight can result in unnecessary and unpleasant disputes. Inform your client that there may be a ‘settling in’ period for building materials. For example, door hinges may need adjustment. Advise your client of their entitlements under a ‘defects and liability period’ (usually 13 weeks for new homes but can vary from builder to builder).

Provide your client with written information on the termite management system and pest control requirements, general post-construction and standard maintenance routines.

You should also provide written information about the recommended protection and maintenance regimes for specific areas of the building.

Managing complaints

No matter how good you are, it’s inevitable that you will encounter complaints during your career.

The way you handle complaints can make or break your business.

Essentially, you have two options:

Option 1: You can stick your head in the sand and hope the problem goes away. But complaints that are left unattended can get out of hand. Before you know it, you have lost control. That can be bad news for your business.

Option 2: You can identify the problem early and take intelligent steps to manage a potentially difficult situation. It’s the sensible option, and it’s better to be proactive than reactive. Make an effort to keep one step ahead of the game by:

• being approachable and ready to discuss problems
• keeping your clients informed of progress and delays
• keeping in regular contact with your sub-contractors
• informing your sub-contractors and clients of problems as they arise. Small problems have a tendency to snowball if left unattended
• making your client aware of any difficulties that may arise due to the nature of the work, for example practical and engineering problems associated with sloping sites.

Formal complaint handling

You should have a formal, written system in place for recording and keeping track of complaints. Even if you are in business by yourself, you can record complaints in your diary or notebook. This allows you to keep on top of complaints and helps identify emerging problems. Always keep copies of any documents you give to your clients and record any steps you took to try and solve the dispute.

Make sure your employees (if any) know how your complaint handling system works.

Your system should include such basic information as:

• the nature and details of the complaint

• the date, or when you became aware of the complaint and the name of the person making the complaint
• contact details of those involved in the job to help sort out the problem quickly
• a process to keep everyone up to date about the situation
• a diary containing details of all contacts made and commitments given
• copies of all letters/faxes/emails received and sent
• regularly check your diary to follow up and finalise any issues and or complaints.

Sharpening your skills

Successful builders need to keep up-to-date with a range of skills to guarantee the success of their business. 

Continuing professional development requirements have been introduced to assist the industry to be more competitive, reduce the level of disputes and raise the standards of the industry in the interest of builders and consumers. There is a wide range of options available to enable you to fulfil your continuing professional development requirements.

Summary

In summary, to achieve good customer service:

• maintain regular discussion with your client
• provide copies of contracts and variations, warranties and insurance
• have complaints handled by one person
• keep up to date in every aspect of your business.

For more information on any of the topics outlined in this fact sheet, go to the Fair Trading website.