Preparing for local construction works

Preparing for local construction works

A guide for small business owners

smallbusiness..au

Contents

Introduction...................................................................................................................................................................................................... 3 Planning/pre-construction phase........................................................................................................................................................ 4 Construction phase...................................................................................................................................................................................... 6 Project completion........................................................................................................................................................................................ 8 Resources for the planning/pre-construction phase................................................................................................................ 9 Resources for the construction phase.............................................................................................................................................21 Resources for the project completion phase............................................................................................................................. 22

The Small Business Development Corporation (SBDC) is a Western Australian Government agency that has been delivering relevant, practical support to small business since 1984. Our primary role is to offer free, confidential advice and guidance to small business owners. We also work with all levels of government to improve their interactions with the small business sector.

Note: The information in this guide is not a substitute for legal advice. ISBN: 978 0 6482871 4 8

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Introduction

Construction work and infrastructure projects can have a significant impact on small businesses. This can include both financial and non-financial disruptions, such as a loss in turnover, reduction in customer traffic and disruption to deliveries caused by road works.

This guide is to help small business owners prepare for construction work associated with the development of new infrastructure, or maintenance of existing infrastructure like road works or water pipes near their premises. While the content focuses on public works (government projects), much of the advice also applies to works carried out by private developers.

The information is presented according to the three phases that most projects fall into:

1. Planning/pre-construction

2. Construction

3. Project completion

It is almost inevitable that, at some point, your business will be affected by public works.

Digging up roads or footpaths for pipes and cabling, traffic diversions, major construction projects, and power outages are the sort of activities that can affect your business, sometimes for long periods of time.

Despite the pain, construction works may ultimately be a good thing for your business.

Construction works could increase the value of your business by improving the look, feel and accessibility of the surrounding area, attracting more visitors and potentially resulting in more customers. If works are planned near your premises, there are actions you can take to minimise its impact. Taking action before works begin will help prepare your business for the impacts and ultimately ensure your business reaps the benefits the project may bring.

The checklists at the end of this guide suggest the type of questions to ask the project team responsible for the construction, as well as other useful prompts.

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Planning/pre-construction phase

This stage is about identifying possible negative impacts your business might experience during the construction phase. Taking action in the pre-construction phase may help minimise these impacts on your business, such as losing customers and reduced cash flow.

Typically, major construction and public works are planned several years in advance. If you are aware of these works before they begin you can better prepare your business.

It is important to keep informed about upcoming works in your area. Keep a look out for communication from your local government and the major utility and infrastructure providers (eg. Water Corporation, Main Roads WA) about upcoming works projects through their websites, stakeholder emails or materials posted to you.

It is recommended you gather as much information about the project as possible, before construction begins.

Once you become aware of upcoming works, you should contact the project team and find out when and how they will be consulting with businesses in the area. This is the best time to try to influence change. Get in early to make sure your concerns or suggestions are heard and considered.

During the pre-construction phase you should:

? Make contact with the project manager from the agency or organisation planning the works. Their details should be included on any advertisements for the upcoming works.

? Contact other businesses impacted by the project and discuss the opportunity to work together in attracting customers during the construction phase.

? Make contact with your local chamber of commerce or other local business association. It can be useful to talk with businesses and chambers in other locations that have been affected by construction projects in the past to see what worked well and what they would do differently.

? Plan how you will communicate with your customers. Think about the main message you want to give them about the project and its impact on your business. Also consider how customers will be able to reach you during the construction phase.

? Undertake initial financial planning to prepare for a possible reduction in cash flow.

? Review your inventory ? will you need to reduce stock levels during the construction phase?

? Check your lease for options to renew, or if market rent review dates fall near or during the project, so you can negotiate with your landlord.

? Use the construction period to undertake renovations on your premises or as a chance for you and your staff to take annual leave.

Attend any planning meetings to find out details about the project and to voice your opinion.

For a more detailed checklist to guide your actions during the pre-construction phase, please see Tool 1 on page 9.

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Planning/pre-construction phase

Case study

A small business restaurateur contacted us with concerns about the impact a major infrastructure project would have on their business.

This project involved ripping up the road in front of the restaurant, restricting customers' access to the premises and an expectation of reduced revenue. Taking our advice, the restaurateur diversified their business model by offering catering and deliveries for customers who wanted to avoid the construction.

Need advice on preparing for public works? If you need to prepare for public works, we have a team of advisers who are ready to help. Our services are free and we can provide support across a wide range of issues including:

? new ways to promote your business ? making operational changes ? financial management ? negotiations with landlords ? managing disputes.

Help is available by phone and email, or take advantage of our walk-in service from 8:30am to 4:30pm, Monday to Friday.

W: smallbusiness..au

E: info@smallbusiness..au

Visit: Level 2, 140 William St, Perth (above the Perth Underground train station)

You can also find support and advice from thousands of other WA business owners by joining our Facebook group, `I'm a small business owner in Western Australia'.

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