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Open Book: 4 Builders on Construction, Competition and Covid-19
Four builders, six questions – discover the challenges, turning points and must-have tools for these pros
Vanessa Walker
23 June 2020
Houzz Australia & New Zealand Editor-in-Chief
In this monthly story series, Houzz goes behind the scenes with professionals who have carved out a niche in their field. This month, we caught up with four builders – Neil Hipwell, founding director of Futureflip; Tristan Haddock, director of Renotech Building; Mark Diedricks, managing director of Arklen; and Justin Robertson, director of Everlong Constructions. Read on to discover their greatest business breakthroughs, challenges and the best professional advice they’ve received.
Neil Hipwell, founding director of Futureflip
1. What was the most challenging time in your business?
1. What was the most challenging time in your business?
- Neil Hipwell: The most challenging time I’ve faced was when I chose to cross over from building other people’s designs to focusing primarily on our own designs. It was a big decision to bring our design capability in-house, as it meant I was now competing against architects who had previously sent us work.
Mark Diedricks, managing director of Arklen
- Mark Diedricks: At the start of the business (in 2011) we had just come through the GFC, and trying to establish some form of credibility without having the work and experience was very difficult.
Justin Robertson, director of Everlong Constructions
- Justin Robertson: Probably the recent period, when Covid-19 hit. I think there were a lot of people who were concerned about how Covid-19 was going to affect their lives and livelihood, which resulted in quite a few contracts being postponed.
Tristan Haddock is the director of Renotech Building
- Tristan Haddock: It would have to be what we have just been through with Covid-19 and the residual uncertainty that is still within the general public, though things are definitely improving.
2. How did you trade out of it?
We were able to create a niche offering where we didn’t have any competition. Since starting to offer designs around eight years ago, we’ve been able to streamline the process and it’s now a lot faster and much more cost effective for my clients.
- Neil Hipwell: I put my head down and worked really hard. I’d build by day and design homes by night and continued to produce high-quality work at an affordable price.
We were able to create a niche offering where we didn’t have any competition. Since starting to offer designs around eight years ago, we’ve been able to streamline the process and it’s now a lot faster and much more cost effective for my clients.
- Mark Diedricks: I was very calculated and set small goals that were achievable. I only built one home a year for the first three years, working hands-on as well as running the business.
- Justin Robertson: We’ve got a great client base with a lot of smaller jobs, so we could luckily fall back on those. It did mean lowering a few staff hours for everybody across the board so we could get through to the other side. Luckily for us it didn’t last too long as we are now full steam ahead.
- Tristan Haddock: We diversified into more works rather than solely concentrating on mid- to large-scale renovations. We found ourselves quoting single-room alterations, maintenance works and minor aesthetic works for clients moving in to new properties.
3. What brought about a major turning point in your company?
This helped our company go from strength to strength. Through a long process of trial and error we’ve been able to create a system that runs like a well-oiled machine.
- Neil Hipwell: I needed to work out the best way to complete the design in a way that suited the clients’ budget. There was no software or text book to teach this. It was something I had to create, and work out on my own.
This helped our company go from strength to strength. Through a long process of trial and error we’ve been able to create a system that runs like a well-oiled machine.
- Mark Diedricks: There was no major turning point as such, we have never changed our philosophies and always remained true to our beliefs.
- Justin Robertson: Probably the first two years were a turning point; managing and building up significant cash flow to keep up with how the business was growing. It took a lot of diligent planning to make sure we were always in a good position financially and able to pay all our trades, contractors and suppliers.
- Tristan Haddock: A turning point came with a non-work related shoulder injury. When starting the company we were ‘carpenter builders’, doing all the on-site work and behind the scenes typically post-work hours. Having one of us completely off allowed for quoting more works and larger works.
4. How could the building/construction industry in Australia be improved?
I think it’d be worthwhile for a long-term subsidy scheme to be created that would help builders take on more apprentices – it’s great to be able to act as a mentor and to pass on your knowledge but it’s important that it stacks up financially. I also believe that there needs to be more of a focus on teaching sustainable building principles at TAFE so our upcoming builders are taught how to build homes in an environmentally friendly way.
- Neil Hipwell: I’m a big advocate for training. I was lucky to get my start as an apprentice at 14 and I never looked back. This was in the early 2000s, and it was a lot cheaper for builders to train people and take on apprentices back then. Because the apprentices were receiving a lower wage, builders were able to take the time to properly train them, and you could have multiple apprentices on your books at any one time.
I think it’d be worthwhile for a long-term subsidy scheme to be created that would help builders take on more apprentices – it’s great to be able to act as a mentor and to pass on your knowledge but it’s important that it stacks up financially. I also believe that there needs to be more of a focus on teaching sustainable building principles at TAFE so our upcoming builders are taught how to build homes in an environmentally friendly way.
- Mark Diedricks: That’s a simple question with a simple answer… The Australian Standard must be improved and all trades should require a license. I don’t understand why people still have the option of a ‘good job’ or a ‘bad job’. It’s all price-driven and the cost of the so-called savings far exceeds the actual supposed savings. I think a good job should be the minimum standard.
- Justin Robertson: I’d like to see regulation around the quality of new products that come on to the market. There are so many products that come and go that promise the world but fail to stand the test of time and disappear as quickly as they arrive.
- Tristan Haddock: A push for greener building methods has certainly been implemented, particularly since the fires at the start of the year. As we progress this can only improve. Beyond this, the removal of the ‘dodgy builder/tradie’ tag, which all builders seemingly wear due to an unfortunate few.
5. What do you think are the challenges ahead for the industry?
- Neil Hipwell: One of the biggest challenges facing construction is the lack of knowledge about marketing and social media, especially for small businesses. It’s a totally different ball game to traditional marketing and what we were taught at TAFE and at high school.
- Mark Diedricks: The industry is in a fantastic position in my view. The majority of new home builders are well-educated and much more open-minded than previously.
- Justin Robertson: A lack of qualified tradespeople coming through raises a challenge. The uptake in apprenticeships has been dwindling year-on-year. It is hard to get quality tradespeople; it seems the easy part is winning the work, but it’s harder to get the workforce to keep up.
- Tristan Haddock: I believe a lot of trades and builders out there are still looking ahead concerned as to what job is next; clients are hesitant to sign contracts with Covid-19 not being completely behind us.
How to Connect Your Website and Social Media Presence
6. What’s the best professional advice you’ve been given?
- Neil Hipwell: Let your clients be your biggest form of marketing. The best marketing tool you can develop is a host of happy clients who won’t hesitate to refer you to family, friends and acquaintances. This is why I always do everything I can to go above and beyond for my clients.
- Mark Diedricks: Be yourself at all times and always be open and honest. I once thought you had to ‘pretend’ you were some kind of faultless robot and create a corporate image. In the end people just want honesty and transparency. Always put in 100 per cent and do your best work.
- Justin Robertson: Always follow through on what you promise and always get the job done in the committed time frame, no matter whether it is costing you or not. You have to deliver to people the expectation that you set. It is a simple rule to live by, but one that gives people the confidence to use and recommend you time and again.
- Tristan Haddock: Do work you care about. This makes things easy on our part. We aren’t trying to be builders that we are not, we concentrate on what we are good at and what we love and that is renovating.
Your turn
Which insights in these interviews resonate with your professional experience? Tell us in the Comments below, like this story, follow these design professionals on Houzz, and join the conversation.
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Missed our last interview with Houzz professionals? Catch up here with Open Book: How 3 Interior Designers Hit the Big Time
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