Memo 13 – How to Remind clients about variation approvals

The Building industry in Australia is tough. The insolvency rate is over: 20%. Lies, non-paying etc. strikes, cost surges etc. is all de rigger. Builders are stressed. There’s no need to stress them out even more. Variation work is common the industry.

Simply use the forms on our quote app – they are standard template fields which will save you a lotta headaches.

If you need to remind clients about a variation:

1. Ask nicely.
2. Ask the proper way.

DO NOT DO THIS:

• “This is a variation for both of us”.
• “Please approve the variation. So that we will proceed with the changes”.

No: it is not a variation for both of you: the client will decide the variation. You shouldn’t tell him that. If you do, you will simply annoy the client.

No: do not ever say: “please approve so that we will proceed”. This is akin to threatening the client, and holding up the job. Never, ever do this! It’s the worst way. You will annoy the client and he will walk – this has actually happened (yes there were other factors contributing) but it could be avoided.

WHAT SHOULD I DO?

• We want our clients to voice objections. That’s right, we WANT to hear the objections. Everything we do should be clear, fair, transparent, and should have the consent of all parties. The communication should reflect that. So ask like this:

These are all “no-orientated” questions. They are decided to illicit a “no” – to make it easy and welcoming for the client to object. Use the exact wording above.

1. Do you have any objections to this proposed variation request?
2. Do you object?
3. Sounds like you have an issue with this request?

Fixed Price Contracting

• Some clients agree to our contract, knowing full well that we do not do fixed price contracting. If any client rejects variations because they want fixed price contracting – then please feel to contact me directly about this.

Be Honest

• If it takes 1 hour, then write down: 1 hour.
• Do not write down 3 hours. If you get caught, then clients will loose trust in you, in our firm, and so will I. You will get a reputation as a liar, and that reputation is hard to shake.