Trade industry update: Unlicensed builder and Undercutting Competitors

An unlicensed builder in Adelaide, 58-year-old Paul Arneric, has been charged a penalty of more than $10,000 for a stolen range hood and unfinished jobs. Mr Arneric pleaded guilty to breaching Australian Consumer Law as well as the South Australian Building Work Contractors Act.

It is a harsh reminder that every entity providing labour services to the public should be registered with a relevant body, perform the engaged work with integrity and conform with the law. For construction service businesses in Queensland, the entity needs to be registered with Queensland Building and Construction Commission.

Due to a boom in residential construction in South East Queensland, tradies have been increasing their charge rates. This in turn, causes other trade businesses to be able to offer competitive prices and undercut their competitors to win new customers. ServiceSeeking marketplace found that 42% of small business owners have reduced their prices to gain new business.

Gaining new business by lowering prices sometimes results in rushed jobs and unsatisfied customers. It is vital to maintain high job standards and excellent reviews by customers because satisfied customers will result in repeat business as well as refer new business.

If you would like to talk more about this with one of our business advisors, please feel free to contact us.

Ellen Mubwandarikwa