PROTECTING YOURSELF 

By: Marcy Lawton, Dynamic Designs, 1-800-PAINT-JOB

In order to maintain a successful business it is imperative to protect the company, the staff and the customers against situations that could potentially jeopardize the solvency of the company.

Protecting our companies has to be the primary objective because without stability we cannot support ourselves, our workforce and we cannot service our customers. Common sense should dictate your company follows all applicable laws, rules and regulations for your area. In addition, it is absolutely essential to ensure that your transactions are legal and that you protect the company from litigation. Making sure you have a paper trail of documentation saves a lot of heartache in the long run.

The Written Document 
The basis of legal protection begins with a signed and dated written estimate/bid/proposal. Regardless of what format you choose, every "agreement" to perform a painting project must be in the form of a written document signed and dated by the customer and by a representative of your company. Please remember to have the customer date their own signature as it makes the document legally binding on them. Dates also serve as the landmarks for the history of the relationship. We all think we will remember the details of a job but when a crisis occurs, it's amazing how quickly our memories fail us.

The written contract must clearly and succinctly spell out everything that your customer expects from the job and everything that you are providing in your service. Make sure the language of the document accurately reflects the verbal communication between you and your customer. Then, spend time going over the contract with your customers to read and reconfirm the details before the agreement is signed and accepted.

A job should never ever be commenced until the contractor has a complete, signed colour selection form listing the areas to be painted, paint brand, paint colour and type of finish. To avoid disputes later on, ensure that all owners sign off on the colour selection form.

Lastly, change order forms should be used whenever there is any change in the original agreement, regardless of how small or insignificant the change may seem. Be careful how you word the change orders because you don't want to inadvertently void the original contract by mistake. If you're not sure how to prepare a change order ask a colleague or consult your attorney because it is a legally binding document.

The Workforce 
Protecting yourself and your workforce just makes good sense because without people to actually perform the painting projects we don't have much to offer as a painting business. Adequate personal disability insurance is mandatory regardless of your income, position in the company or marital status. The bottom line is, if you are unable to work you need to ensure you have the funds to support yourself.

Offering disability insurance to employees is totally up to the individual contractor. However, it will certainly help when recruiting quality employees. Protecting employees with worker's compensation is law in most places, but still many contractors refuse to cover their employees with this insurance. We can debate the necessity of worker's compensation all day, but in the end we must respect the laws and work within them.

Consumers 
What sets us apart as professional painting contractors is the integrity of our companies and our dedication to our customers. The best way to protect our customers and ourselves is by having general liability insurance for the company. It protects against damage or injury resulting from the work being performed by our company. Not only will it give customers peace of mind knowing your company takes full responsibility for the protection of their property, but it will cover you in the case of a lawsuit.

The bottom line is we can never forget that we are in business dealing with the public and anything is possible. We are in charge of our own businesses and how we want them to run. It is therefore our sole responsibility to ensure that all business transactions are legal and that our interests are protected at all times. If you are not sure about how best to accomplish this, please ask someone for help. It has been said many times that we do not need to reinvent the wheel and it is so true. Business is one place we do not need to make mistakes ourselves in order to learn the lesson. Just think of it this way, when you make a statement or promise to a customer (either written or verbal) check yourself to see how it would sound to an objective observer, such as a judge, and make any necessary adjustments to protect yourself.

Marcy Lawton © 2000, Dynamic Designs

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