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70 E L EC TR I C AL CONNEC T I ON
W I N T E R 20 1 6
REPUTATION IS ALL
M
y involvement in this industry
for more than 30 years has
placed me in the privileged
position of dealing and associating with a
lot of smart people.
And during this time I have observed
the rise and the downfall of many
building companies.
It’s no secret that success in any form
stems from a huge amount of hard
work, sleepless nights, untold stress,
commitment and a lot of personal and
business sacrifices.
Most people start a business because
they want to add value in a void created
by non-caring businesses, and to gain
a reputation that lasts well beyond the
completion of a project. This brings a
sense of worth; to be one of a kind.
Some others start a business in the
hope of making ‘loads’ of money. Well,
we all know what happens with such a
business plan.
Many projects these days are run by
builders, who can be fantastic to work
with. They develop positive partnerships
that enhance the work environment and,
as a result, create good-quality projects
that make the participants proud.
Unfortunately, for the electrician and
other important subcontractors, these
quality builders are in short supply.
Other builders’ objective is to
slash prices and pass on the risk to
subcontractors. If you are desperate for
work, you will take it on as a loss or, if you
are lucky, at cost. Then you pray there will
be some variations.
Do that, and you have forfeited the
main objective of starting your own
business in the first place – no sense
of pride, no added value, no self-worth
and, more important, you are unlikely to
gain a good reputation.
Remember, the builder is there
to ensure that the project complies
with all tender documents – and to
co-ordinate all subcontractors for a
compliant result.
On one project I know of, a mechanical
contractor installed incorrect refrigerant
piping insulation that was inferior to what
was specified (R1.0).
The explanation? The lead time was
too long on the specified insulation so an
executive decision was made to use ‘pair
coil’ (R0.4).
The consultant issued an instruction
to replace all piping insulation with the
specified material.
This second installation was
inspected, only to find that the wrong
insulation had been used yet again.
It didn’t meet the Building Code of
Australia thermal ‘R’ rating.
The explanation this time? “This is what
the supplier sent – which we installed,
assuming it was correct.”
Insulation on piping with a diameter of
12mm or greater then had to be installed
– for the third time.
At the final inspection, the consultant
rejected the larger insulation. It had been
cut with a knife for fitting to the existing
pipe, which was fastened with cable ties.
This meant yet another installation –
the fourth.
The builder, who should have taken an
active role in the rectification, just
passed the liability to the subcontractor,
who must have lost a lot of money by
being foolish.
The builder’s only response was: “We’ll
get it fixed.”
But it wasn’t a matter of ‘we’. The
subcontractor copped all the rectification
cost, additional builder’s cost, delay cost,
etc. Reputation – down the drain!
In another example, an electrical
contractor took on the data
communications component under
a sub-subcontract.
It was confirmed in writing that the
data installation would be carried out by
a vendor-certified installer (CI).
Unbeknown to the builder and the
consultant, the CI walked off the site
claiming that the electrical work was
substandard and the electrical contractor
was not able to support him with the
data installation.
The contractor then proceeded to install
the data cabling, and data outlets were
generally terminated using a pair of pliers.
Despite numerous defect reports,
the contractor maintained that the data
installation was carried out by the CI.
The consultant contacted the CI
about the quality of work and was
given the sorry story. The consultant
then contacted the data equipment
vendor which, after a site visit, said
certification would not be granted.
The site had to undergo complete
rectification to the satisfaction of the
vendor and consultant at huge cost to the
electrical contractor.
This is not the way to run a business. It
is pure madness.
At the very least, if you are working
with a set of drawings and specifications,
never assume that no one will check
your work. When they do, and you’ve
made modifications unacceptable to the
consultant, you are in deep trouble.
More to the point, dropping the price to
win a job could ultimately cost you much
money, aggravation and loss of hair.
It would be ideal if you could choose the
projects and the people to work with, but
that’s not going to happen.
BUSINESS SUCCESS COMES
FROM HIGH SERVICE LEVELS AND
DIFFERENTIATING YOURSELF.
JAN
JINADASA
EXPLAINS.
JAN’S OPUS
BY
JAN
JINADASA