It's that time of year again...

Yes, it is.

And I'm stunned, not to mention a little embarrassed to see that it's been over a year since I've updated my blog.

How very shabby of me!

Let me give you some updates on what's been going on - 2014 has been an awful, awful, trying and testing year - and why I find myself not writing here for a year....



You may recall this post here that I made in October, 2013 (!!) where I was complaining that a client owed me $140k in delays.

Well, let me now finish the story for you....

I never did hand over the house to the client in November, 2013 as they expected.  Or December, or even January, February or March in 2014.

In fact, sitting here now in December, 2014 they still do not (legally) have their house.

Eventually the client caused even further delay to the completion of their house, and in total those delays equated to an invoice to them in the order of $240k in delays alone.

On top of that, they were refusing to pay me some $100k in contract sum that they are contractually obliged to finalise.

In the end my final claim against them was in the order of $357k (including GST).  Can you believe it??

They simply, point blank, refused to pay.  The nerve of these grubs.  I saw the worst of the worst of humanity in these grommets - they disgust me so much that I can't even call them people.  I'm still so angry over this matter (so much so that this blog post has been stopped and started on several occassions because I just couldn't continue thinking about it all).

I eventually took it to my lawyers, which upset the client.  For some reason they thought I'd just roll over and give in to their position.  Of course, I should have expected it....afterall, the wife did once say that she hoped I'd go bankrupt so I'd accept any loose change she throws at me!!!!  Bitch.  Cow.  <edit>.  <edit>. 

Anway, I took it legal and told my lawyers to go for the jugular.  And they did.  The clients ended up ringing me directly in February 2014 requesting a settlement meeting.  I agreed, naturally.  Anything to settle the matter quickly, inexpensively, and to get these pricks off my books.

After much argy bargy and difficult discussion - which was all conducted very maturely, I must say - we reached agreement at $200k.  

Isn't that just a massive, massive concession to them?  If you were them wouldn't you be jumping for joy and get the settlement done pronto so I couldn't re-neg on the deal?  I certainly thought so.

As part of the settlement we negotiated a number of terms; some favourable to them, others favourable to me.  I've been taught to always leave something on the table - and that's what we both did.

BUT....there's always a BUT....

When it came time to finalise the settlement document they re-neged on the deal!  Those terms that we all agreed upon - they didn't want some of them in the settlement deed.  They were quite happy to keep the ones favourable to them in the deed, but the ones that were favourable to me...well, no....they just couldn't seem able to include them.

Needless to say - the deal didn't proceed and they didn't get their house; but I didn't get paid either.

Remember that I've already paid my subcontractors for this job.  See what an arse the construction law is?  I have to pay my subcontractors - but I have to wait OVER ONE YEAR BY THIS STAGE to be paid...My cashflow is screwed, and I have effectively funded the construction of their home.  Where on earth is the sense in that?  This is what our stupid laws result in.  I hope to goodness that one of these dumb politicians stumbles across this blog and reads this - I swear they don't live in the real world.

Anyway - back to the point.

I went legal again...and this time we had to spend even more money getting expert consultants to shore up our position.  More $$ down the drain.  

I turned up at the house one day in around June or July, because legally I'm still in possession of it, as I had to meet one of these consultants there, and I couldn't get in.  These people changed the locks!!!  I eventually gained access and changed all the locks.  The following week my husband attended the house with another consultant, and these grubs had changed the locks again and taken illegal possession of the house.  The wife was actually sitting in the house and guarding it when my husband arrived there.  Then they had the nerve to send me a letter accusing me of trespass, break and enter and threatened legal action should I gain access to the house again.  OMG!!  

Of course, their possession didn't mean all that much because they couldn't legally reside in the house.  I still have all the certificates and documentation they need in order to obtain an occupation certificate.

Anyway, we're going through the slow legal processes, preparing our claim, getting our ducks in a row so to speak and we finally lodge our claim in the courts.  Our total claim for our outstanding contract sum, approved variations, approved adjustments to provisional sums and prime cost items, and delays as a result of tiling, joinery, toilet exchanges and a few other bits and bobs is circa $360k including GST.  And then we have to throw interest on top of that, too. 

I have to be honest here - I was dragged to the lawyers office kicking and screaming.  I did not want to go the legal route.  Going the legal route is just an emotionally draining, financially draining exercise - and I just didn't want to endure it again....but we had no option in this case.  All hopes of an amicable settlement were well and truely gone.

The matter is now about to settle.  We didn't make it to a hearing.  In fact, I don't think the matter even made it's second directions hearing.  The grubs put in an "Offer of Compromise" through the courts.  The offer was insulting, disgusting, and just plain rude.  But it was accepted.  Only to save the effort, expense and emotional tax of a hearing.  We've signed confidentiality agreements so I can't even disclose the settlement amount (which is roughly a third of our claim).    

Then, in an attempt to get more from me whilst I'm already bent over they asked for a quicker settlement.  I told them to get F'ed...they can wait the full 28 days and they're not getting anything from me a moment earlier.  The nerve of some people.

So, the matter will officially be over around the middle of January, 2015.  I don't even know the settlement date - I just don't give a damn any more.

This, my friends, is the construction industry in all it's marvelous, wondrous glory.  It's the powerhouse of the country, the driver of the ecomony, and it's run like a fucking brothel.  As a direct result of this particular matter (and a few others involving residential work) we have completely pulled the pin on residential work.  We've declined the opportunity to renew our eligibility for home warranty insurance, and we've surrended our licence.  Now we're only taking on commercial work.

Mind you, commercial is also wrought with danger.  But in my view it's less risky.  At least we have the Securities of Payment Act to help us with our cashflow when someone decides to withhold payment.  All we need to do is be vigilient in our debt recovery/accounts receivable.

We did finish that juicy little commercial job that I've previously mentioned.  It turned out to be quite a profitable job....thank goodness....We completed and handed over in March, 2014, and haven't picked up another job till just last month!!  That particular client still owes us $10,000.  Why?  Because he feels like not paying it.  


Then, we have this post here in which I discussed the search for my groove.  

As I already said, I abandoned the idea of JGF.  And I'm thankful I made that decision.  I have no regrets at all about that one.

I also completed my investigations for DSW.  I made a decision not to proceed given that it would be entirely reliant upon my husband's qualifications, and it would entrench me in the construction industry even further.  

As you can probably gather - the sooner I get out of this terrible, disgusting industry, the better off I'll be (regardless of the move to commercial work only).  I have honestly struggled with the industry.  It's turned me into a person I'm not happy with - a person I don't like.  

Is that a reflection of my own weak, malleable personality?  I don't think so.  To survive in this game one has to be strong, tough, ruthless even, otherwise you simply won't make it.  I admit I am those things, and then some.  But I don't like being that way any more.  I never used to be like that.  Yes, I've always been strong, tough, and ruthless....but in a different way....a softer way, if you will.  I can't quite articulate it properly.  Perhaps it's a matter of degrees.....perhaps I've become just an amplified verson of strong, tough and ruthless.  Whatever it is - I don't like it, and I want to be the old me again....the me that gave a damn about people, the me that wasn't always stressed and cranky, the me that could laugh a little more freely and relax a little more quickly.

Anyway, back to my point.

I do believe I've rediscovered my groove.  

I've settled on a business that is easily systemised and procedurised.  It's a business that can be run by others (in due time).  It's a business that generates revenue month in, month out, without fail.  It's a business that doesn't suffer during economic hardship.  It endures.  Always.  Managed correctly, it's very profitable.  

I've made the decision to re-establish TRS.  I've gone through the process of re-branding it.  I've purchased 1300 and 1800 smart numbers.  I'm currently going through the process of updating my requisite qualifications.  I'm finalising my service offerings and have commenced preparing system and procedure documents.

And I've never been more sure about something than now.

I'm over my "running out of time, I'm 40" mentality.  How dumb.  When I think about how I feel, I certainly don't feel like I'm 40.  I have the same energy as I did when I was in my mid 20's - the difference now is that I have a couple of kids that I need to fit in amongst my work - but that's certainly not impossible to do.

The other major difference is time, and life.  I'm smarter and more experienced now than I was when I was in my mid 20's.

I do recall when I sold TRS back in 2002 (it was actually 2002, and not 2000 as I said in my original post).  I recall being stuck.  I was young and I was in a very successful business, but I couldn't move forward.  I couldn't expand it.  Some people may think that ludicrous.  But it's true.  I didn't know HOW to employ someone (thanks, Dad, for the trust issues!!).  I didn't know HOW to manage expansion.  I didn't know HOW to deal with banks to even explore a debt funded expansion.  And even worse is I didn't have a support network or mentor that I could turn to and talk with about the issues I was facing.  So, I was stuck, with no where to go, and felt totally overwhelmed.  So, I cashed in.

Today as I sit here typing I have no doubt that having experienced all of life's extremes over the last 12 years (and moreso in the last 5 years) it stands to reason that I now possess so much more knowledge and experience than I did back in 1997 when I first started TRS.  So, bringing all this acquired experiernce and knowledge to TRS 2.0 can only be a great thing.

I've told Hub (who supports me completely) that I'll be doing this 100% this time.  Not that I didn't give it 100% last time, but this time I will be making it a major enterprise.  I won't be selling out when I get stuck.  

I'm reminded of a saying I use all the time - When You Know Better, You Do Better.  I believe that definately applies to TRS 2.0 and I couldn't be more excited by it.

Naturally Hub is concerned about what will happen with his business.  We're just going to have to employ someone to take over my role in his business.  My mental health, my professional satisfaction, my career, my self-worth is far too important to me to not do this.

Then of course, I've been kept very busy with my various family and school committments.  School life can be quite consuming.  And so can club sport.  My son is involved in club sport and I put up my hand to be the age group co-ordinator.  And I've been asked to take on the role of Treasurer in 2015 for the club as well as maintain my age group co-ordinator role.  So 2015 is already going to be a busy year and my daughter hasn't even started club sport seriously yet.


I remain cigarette free.  In February 2015 it will be 4 years.  I'm still amazed at how easy it was.  Unfortunately I did pile on the kg's as a result.  I spent the last 12 months getting rid of them.  It's been a yo-yo ride with the scales.  Up, down, up, down.  But, I've joined a gym.  I do pump classes twice a week and I was doing HIIT on the treadmill 3 times a week.  I managed to work my way up to 10 cycles runninging 30seconds full pelt between 13 and 14klm/hr and walking 2 minutes, which is pretty bloody good.  But for some reason I stopped doing that about 3 months ago (I think time just got the better of me on one or two occassions and then it was just easier to not go).  

Anyway - I'm currently on my annual holiday right now (arrived yesterday afternoon) and this morning I went for a run and realised just how much my fitness has plummeted as a result of not doing the HIIT.  I'm totally devestated.  I ended up power-walking instead of running, and did a few rounds of stair sprints.  No need to tell you what one of my goals for 2015 will be.


So, there's my year in brief.  Well, this could only ever provide just a brief snapshot. It's been far more busy, far more difficult, far more consuming than I could ever possibly regale here. 


Till next time...

Good bye...

See ya, Kev!

It's about bloody time.

Don't let that door hit you on the bum on the way out.

Good riddance.


Till next time...

"F" for FAIL...

Indonesia submitted you to a pop quiz, and you failed.

The boat was in Indonesian waters.  The boat wasn't in Australian waters, and the boat wasn't even in International waters, so why did the Australian's even "rescue" it?

This was a classic example of Indonesia flexing their muscle, and you've let them.  

Shame on you.

Why are you even letting Indonesia make the refugee's that are leaving FROM THEIR COUNTRY our problem?

They are living in Indonesia at the moment, so isn't it Indonesia's problem?

How are you going to stop the rest of them from coming now?  You've just proved that you're nothing but hot air and hope.

Till next time...

A typical subcontractor in the residential sector....

So, we have a house to finish and it's almost done.  We've sent the requisite notice to the clients advising them of the date they can inspect the completed works and pay us our final progress claim.

All that's left to do is some external painting.

The painters were supposed to be there on Friday.  They weren't.  The head guy was "sick".

They were supposed to be there on Monday.  They weren't.  The head guy's "car broke down".

Phone calls go unanswered and so do text messages and emails.

The painters were supposed to be there this morning.  They're not.

Again, phone calls go unanswered and so do text messages.

I eventually get in touch with the head guy.  Lovely man - really.  Lovely family, too.  Heart of gold but unorganised to the extreme.

He confesses that he has no money to buy the rest of the paint he needs to finish my job, so he's had to contract himself out at day labour just to bring in some quick cash to buy the paint he needs for my job.

WHAT THE HELL?

I don't get how these people run businesses!?!?

OK...I understand that someone passes you a bum cheque and you were counting on it to pay your own suppliers and because of that you become temporarily stuck.  But all my painter needed was $1000.  That's it.  Just $1000.

Surely, surely these "businesses" have some sort of float they can dip in to?  I don't understand how they can't have one.

So, he's delayed the completion of his work on my house for 4 days because of $1000.

Bless him - he was too embarrassed to tell me the real reason for not showing up, and he was worried that if he asked for a 'start' I may think that he was trying to shaft me (ie: take the money and never show up again - a practice rife in this segment of the industry), but still, we all have a job to complete and it needs to be completed.  It's that simple.

Subbies - please become better business people, and please learn to open your mouth and say something if you have problems.  There are some builders out there who aren't your enemy.


Till next time...

The proposed SOPA changes...

A Summary of the proposed SOPA changes:

Building and Construction Industry Security of Payment Amendment Bill 2013 – Summary of changes

1.    Prompt payment provisions.

These amendments will not apply to a residential construction contract that is connected with the main contract. Exception does not apply to other work that may be described as residential e.g. high rise apartments and other commercial developments.

Proposed s11(1):

·               A progress payment to be made under a construction contract is payable in accordance with the applicable terms of the contract.

Proposed s11(1A):

·               A progress payment to be made by a principal to a head contractor becomes due and payable on the date occurring 15 business days after a payment claim is made.

Proposed s11(1B):

·               A progress payment to be made to a subcontractor becomes due and payable on the date occurring 30 business days after a payment claim is made.

Proposed s11(1C):

·               The existing due and payable provisions for construction contracts connected to an exempt residential contract are retained.

Proposed s11(8)

·               Any provision in a construction contract that provides for payment of a progress payment later than the periods stipulated in s11(1A) and s11(1B) are void.

2.    Removal of existing requirement under s13(2)(c) for a statement that a payment claim is made under the Act.

   

3.    Requirement for a payment claim to be accompanied by a supporting claim.

Proposed s13(7):

·               A payment claim submitted by a head contractor to a principal must attach a declaration that all subcontractors and suppliers have been paid all amounts that have become due and payable in relation to the construction work concerned.

Maximum penalty: $22 000

Proposed s13(8):

·               To serve a supporting statement with knowledge that it is false or misleading in a material particular is an offence.

Maximum penalty: $22 000 or 3 months imprisonment or both

4.    Investigation of compliance with provisions regarding supporting statements

Proposed s36 to s36B:

·               Appointed authorised officers (public service employees) may require a head contractor or associated persons to provide information or documents relating to compliance with the new provisions of s13 regarding supporting statements.

Maximum penalty: $22 000 or 3 months imprisonment or both

Not happy, Jan.

Till next time....

Yet another step in the road...

...toward a Nanny State?
...toward total Government involvement?
...toward being completely, totally, utterly restrained that you just can't do business anymore?

When, oh when, will the Government just F* off out of our businesses and let us get on with the job?

I've received this today from a construction solicitor and I'm not impressed in the slightest.

MORE GOVERNMENT CONTROL PLANNED FOR THE NSW CONSTRUCTION INDUSTRY

On 30 October 2013 the New South Wales Legislative Assembly passed the first of a number of proposed amendments to the Building and Construction Industry Security of Payment Act 1999 (NSW) (“Security of Payment Act”)  that will change the construction legal landscape in New South Wales for many years to come.

All that is required now is the bill’s passage through the Legislative Council for the amendment to become law.

In Australia, the Security of Payment legislation exists in some form or another in all States and Territories. The Security of Payment legislation typically governs the contractual relationships of principals (developers), head contractors (builders) and subcontractors.  

The effect of the existing Security of Payment legislation is to override the contractual relations of the players in the construction process. The existing legislation provides a statutory process to circumvent the agreed contractual clauses to determine the amounts due to a claimant for construction work performed by it. The system is far from perfect and provides little more than rough justice to the parties to resolve disputes concerning payment.

Subcontractors are the main users of the Security of Payment legislation. Head contractors do not often use the powers against principals.

No other industry in Australia has such legislative interference in its commercial relationships.

In 2012 the Collins enquiry, headed by Bruce Collins QC, looked into insolvency in the construction industry and made various recommendations to the Government. (This was at approximately the same time as the Reed Constructions Pty Limited insolvency which involved major government contracts). These recommendations are now being enacted in response to the growing number of insolvencies of major head contractors and the knock on effect to subcontractors.  The bill creates yet more legislation reflective of the Queensland legal and regulatory regimes governing its construction industry.  This is in stark contrast to American politics and its swing towards reduced government involvement.  

The new legislative amendment represents a dramatic first “phase” of changes to further limit the way parties contract in commercial construction contracts and residential subcontracts.

Whilst the Minister for Finance and Services, Mr Andrew Constance, admitted in the second reading of the bill that “the majority of the industry does the right thing” the majority of head contractors must by this proposed bill bear yet another burden created by a few.

The proposed amendments dictate when progress payments must be made under head contracts and subcontracts despite what the parties might otherwise agree. This change reflects the Security of Payment legislation (and other legislation) in Queensland. In another section the proposed amendment changes the form in which payments claims are made. The result will be that every demand by subcontractors for payment (whether by letter of invoice) from head contractors will now require a special statutory response, which if missed becomes an automatic debt due to the subcontractor regardless of the work done and its true value.

Australian head contractors and subcontractors have never seen legislation like this.

The amendments further require that a head contractor attach to its own payment claims a declaration (referred to as a “supporting statement”) that all subcontractors and suppliers have been paid all amounts that have become due and payable in relation to the construction work concerned. If they do not, a maximum penalty of $22,000 applies. Further, if a head contractor serves a supporting statement with knowledge that it is false or misleading it will be an offence with a maximum penalty $22,000 or 3 months imprisonment or both.

On major constructions sites a head contractor will manage up to 70 subcontractors, consultants and suppliers to complete the works and each may make monthly or even weekly claims. During the course of any project, thousands of requests for payment will be made. The management of that process created by these proposed laws could have extraordinary consequences if the head contractor’s statement is in error.

Finally, the Government may (by these amendments) appoint public servants who can require a head contractor to provide information and all documents relating to compliance with the new provisions regarding supporting statements. Failure to comply with the requirements of such a notice may result in a maximum penalty of $22,000 or 3 months imprisonment or both.

In this instance the Government’s first legislative phase (as it puts it) comes at a high cost to the majority of the head contractors that do the right thing. The bill represents just the beginning of a legislative and regulatory regime to change the way construction takes place in the State of New South Wales.

The major builders will cope with this proposed legislation and the costs will be passed to principals. The costs will be substantial to ensure compliance, however, it is the mid-tier head contractor that will be forced to increase its administrative workload to accommodate the proposed changes. The bottom of the construction market will ignore the law. As always it’s not about creating yet more laws that will be ignored but about enforcement against those few bad apples.

In the meantime our economy which is highly dependent on new housing starts and capital expenditure for growth staggers on. If construction is the engine room of the State then the drivers of that engine are its builders. These builders continue to have their contractual rights restrained and if all the recommendations are enacted, they will within a short time, be operating under even stricter laws and controls. No doubt the other States and Territories will be looking on to see how the New South Wales economy performs if the bill is passed what affect it will have on its builders. 

You know what effect this will have?  It will screw us even more and screw our cashflow even more.

Have you ever stopped to think about how much the subcontractors actually screw over the builders with dodgy and inflated progress claims?  As it is we've got nothing in the way of protection against that.  The SOPA essentially states that we have to pay their full claim and then fight it out in court!  If that's how it has to be managed then why even have the SOPA in the first place?

Government....Please understand this.....All you manage to do is screw things up!  

GO AWAY!  YOU ARE NOT WANTED IN OUR BUSINESSES AND YOU ARE NOT WELCOME IN OUR BUSINESSES. 

I have not even started on this particular topic yet.  Stay tuned...


Till next time...

The people have spoken...

mandate

noun

ˈmandeɪt/

1. 1.

   an official order or commission to do something.

   "a mandate to seek the release of political prisoners"

   • 
     

     
     
   • 
     
   • 
     

     
     

     
     
2. 2.

   the authority to carry out a policy, regarded as given by the electorate to a party or candidate that wins an election.

   "he called an election to seek a mandate for his policies"

   • 
     

     
     

     
     

verb

manˈdeɪt/

1. 1.

   give (someone) authority to act in a certain way.

   "the rightful king was mandated and sanctioned by God"

   • 
     

     
     
2. 2.

   historical

   (of territory) be assigned to (another power) under a mandate of the League of Nations.

   "mandated territories"

During the 1998 election the Liberal's campaigned on their GST policy and won the election.  The GST was implemented (with just a bit of negotiation with Meg Lee's of the Senate) with the legislation passing through both houses.

During the 2007 election Kevin '07 campaigned against the Liberal's WorkChoices policy and won the election.  Labor immediately set about dismantling the WorkChoices legislation and the legislation to do so passed through both houses (noteworthy here that Liberals did not oppose the legislation).

During the 2013 election the Liberal's campaigned against the Carbon Tax and won the election.

In all three elections the victor had received a clear mandate from the electorate.  There can be no confusion and no misunderstanding on this.

Labour did the right thing and allowed the passage of the GST legislation through the houses and the Liberals did the honourable thing and allowed the passage of the legislation to dismantle WorkChoices through the houses.

So right now I simply can't fathom how Labor can not recognise the clear mandate that Liberal has received from the election to dump the Carbon Tax. 

It is beyond rude.  It is beyond arrogant and it is just very, very poor form to say the least.  I just don't have the words to express my disbelief at this latest little sooky-la-la behaviour from the Labor party.

Tony Abbot's campaign was so clear - he was going to dump the tax.  It was his mantra every single day - day in and day out of the election campaign.  At every single opportunity it was his catchphrase.  He did have 3 or 4 other key platforms that he campaigned upon - and he can rightfully consider that he has a mandate for those also.

So Labor, you need to "man up", accept your punishment (ie: the mandate from the electorate) and let the Liberal's get on with the job.  If you want to sook and carry on, do it behind closed doors where we can't see it.


Till next time...

Our job as a parent...

I was listening to FM radio station yesterday morning as I was doing the school run and I heard a comment about a man who'd purchased an apartment as an investment property that will eventually be owned by his son who is currently 5 years old.  The radio station were inviting people to call in and voice their reaction to this little bit of "news".

I was staggered by the comments against what this father was doing!  It was terrible to listen to, to be honest.  

This man's "story" even made the nightly news and some of the printed and online news:

http://brisbanetimes.domain.com.au/real-estate-news/lawyer-buys-710000-city-unit-to-set-up-son-5-on-ground-floor-of-property-market-20131028-2wc2p.html

http://news.domain.com.au/domain/real-estate-news/the-best-reason-for-not-buying-your-child-a-property-20131029-2wdod.html

http://smh.domain.com.au/real-estate-news/lawyer-buys-710000-city-unit-to-set-up-son-5-on-ground-floor-of-property-market-20131028-2wc2p.html


That the man even wanted to share what he was doing with the media is a little curious, but that's not the point right now.

People....we are parents.  It is incumbent upon us to provide our children with the best possible start in life that we're able to provide for them.  It really is that simple to understand.  And it's almost like an unwritten contract that we entered into the moment that the child is born.

It's our responsibility to do this, so good on this man for doing what he's done.  

There's no question that prices right now are ridiculous, and history tells us that it's just going to get worse in the future.  I always ask myself how on earth my kids are going to be able to afford to buy something when they're adults if I'm not able to help them out.  I wish I was in a position right now to do the same thing for my kids as this man has done for his son.


Till next time...