Successful Benchmarking: 10 Best Practices & 10 Mistakes

We have all heard the term 'benchmarking,' but when it comes to directly learning from other companies, it’s common to get a little fuzzy on the details of how it should work. Understanding the ways in which a benchmarking visit differs from just a tour is critical to making changes that have operational and bottom line impact. To illustrate, here is a typical tour approach to which many of you can relate.

We’re Not Big on Titles

If I had it my way, most of our business cards would not list a job title. Mine never has.

Over the years, I have seen folks get caught up in their name, rank, and serial number for a company, maybe neglecting some important nuances in the process. With all respect to my banking friends, I have never met anyone with a lower rank than vice president listed on their card.

Our project management has a hand in estimating and at times estimating has a hand in project management. It’s just the way we are wired. No silos. Our civil engineering folks are involved with project management, and the list goes on. As business evolves, I think this is becoming true in many other fields. Job descriptions just aren’t as cut and dry as they once were, and a standard business card doesn’t have enough space for an accurate title.

When people first meet us, maybe they need a title to help them get our organization sorted out, but after an introductory conversation, this all seems to smooth out. To me, actions and good work are the best titles.

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When Is Too Much, Too Much?

With each passing year, I think it is easier at times for us to get caught up in the “comparison trap.” I know I have be guilty of this very thing.

A few months ago, I had lunch with an acquaintance, a wealthy individual who had accumulated a substantial amount of wealth during her life. As we talked, she was saying that being blessed with money can actually be a curse. How do you ensure you are a good steward of your funds? What about your children and grandchildren? Will they have good perspective in light of their wealth and work equally hard as she did?

I think the same goes for brains. I have an attorney friend who scored perfect on the LSAT, yet he’s spent his life struggling with depression followed by a bit of addition. I’d argue that somewhere between the extremes of average and excessive might be the sweet spot. If you need to feel perfect for a time, you can always take a trip down to Seaside for the week, which seems to me a lot like Garrison Keillor’s Lake Wobegon, “Where all the women are strong, all the men are good-looking, and all the children are above average.” The regular world will be waiting on you when you return. Hopefully you’ll be feeling glad for what you have and not worrying about what you may not have.

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All About the Bucket Attachment

Bobcat's advice on finding the best bucket attachment to improve productivity and profitability.

Adapt or Die: Assess & Evolve to Change the Construction Industry

“Adapt or Die,” is arguably the most memorable line from the movie version of "Moneyball." The meaning of the quote and how it relates to business and risk management is paramount—we must fight and overcome the current status quo if we want to change the industry. In construction, we continue to encounter challenges, such as shortages of a skilled workforce, fast-paced technology changes, economic impacts, trade partner liabilities, succession issues, and the ability to attract and retain top talent.

4 Ways to Generate More Promising Customer Leads

Read here for 4 ways to generate more promising customer leads while adhering to data-protection regulations, turbocharging your business development.

Accurate Data = Accurate Forecasting

A comparison of the predictive cost and traditional forecast models for construction businesses.

5 Ways to Promote a Culture of Safety at Your Company

Read 5 ways to promote a culture of safety at your company. Here's why prioritizing worker safety makes good business sense

Understanding Cyberrisk & Creating Awareness in Your IT Processes

How to understand cyberrisk and create awareness in your IT processes.

The Construction Industry’s Growth Trajectory

The economic trends in construction & the part they'll play in shaping your success this year.

The Construction Industry’s Growth Trajectory

The economic trends in construction & the part they'll play in shaping your success this year.

IRMI’s 38th Construction Risk Conference

IRMI’s 38th Construction Risk Conference boosted awareness on trends and new issues in the industry. Read more here.

December 2018 Construction Industry Stats

The AIA Architectural Billings Index, U.S. Census Bureau's Annual Value of Construction Put in Place and more here.

The Cost of Not Keeping Up with Technology

Construction businesses need modern internal systems. A cloud-based enterprise resource planning solution could save your bottom line. Find out how here.

5 Questions for Finding the Scissor Lift Your Company Needs

This article list 5 questions to help you decide what type of scissor lift your construction company needs on its jobsites. Additional features beyond height and weight differentiate one machine from another. While all scissor lifts may look similar, they are not the same. Many scissor-lift models allow operators to complete one specific task, but how efficiently and safely that task is accomplished, as well as the serviceability and durability of the machine, are impacted by the model. Find out what aspects you need to pay attention to, such as load-sensing systems, drive systems, and power output, here. 

Healthy, Wealthy and Wise?

This week, I attended the annual year-end dinner and board meeting of the Atlanta Federal Reserve Bank. The Surgeon General of the U.S., along with the president of the sixth district, spoke about a range of common threads affecting both.

Poor health leads to poor economics and good health can lead to good economics. I never thought of this in this way, but it made real sense.

Vice Admiral Adams ranged across several platforms and a call to action, but first he shared that today’s youngest generation of Americans have a lower life expectancy than every other living generation. This is huddled around childhood obesity, adult obesity, hypertension, physical inactivity and diabetes. On top of this, we have a generation or maybe two that will be affected forever by the opioid crisis, which he referred to as a defining moment in our history.

What can be done? It’s simple. We need to start open real discussion among ourselves, not stereotyping individuals suffering from these diseases, and to engage all aspects of the community, from the law to the religious and community leaders and, most importantly I would, say ourselves.

While the Federal Reserve’s system mandate is to maximize employment and work to stabilize prices, to me, there is so much more. Over the last few months, I have observed efforts to create discussions similar to this one, all in an effort to help provide better economics and therefore overall well-being.

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2018 Regulatory Roundup

A recap of all contractor licensing regulations that were enacted or changed in 2018.

How to Pivot in a Slower Economy & Maintain a Healthy Business

A slower economy is inevitable. Here's how to start planning for it now.

3 Areas of Construction Tech Launching the Industry Forward

The 3 technologies that will take your contracting business to the next level in 2019. 

Understanding the True Power of Telematics

According to Occupational Safety and Health Administration (OSHA) statistics, 21 percent of all worker fatalities in 2016 took place in the construction industry—a statistic that must be improved. However, improving safety records has more than the obvious benefits to human safety. Your company’s safety record is also a concern when applying for new contracts. Clients prefer to work with construction companies that have a safety plan in place and maintain a good safety record.

IRMI’s 38th Construction Risk Conference

IRMI’s 38th Construction Risk Conference boosted awareness on trends and new issues in the industry. Read more here.

Why Close-Out Matters to Your Margins

Perfect your close-out/punch-list strategy with these tips from Gregg Schoppman.

Industry Trends You Should Keep an Eye on in 2019

Scott Arias, Ph.D.

Program Coordinator and Assistant Professor, Eastern Kentucky University President, ACE Consulting Company

The Effect of Digitalization on Construction

Technologically speaking, the greatest obstacle to success in construction today is the proliferation of the data silo. Few, if any, companies ever realize the value of all the information created on a single project—data that could be used to improve decision-making, efficiency, quality and safety, as well as reduce liability on that project and all those that follow.

The Era of the Digital Contractor

Tips for approaching digital contracting from Sachse Construction's Andrea Wright and Kathy Sulik. 

Tips for Protecting Your Company’s Data

Tips for Protecting Your Company’s Data from Departing Employees.

November 2018 Construction Industry Stats

The Construction Business Owner team compiles statistics from multiple sources each month, including the American Institute of Architects (AIA) and the United States Census Bureau, to give you a better understanding of the current state of affairs for the construction industry. The statistics featured in each month's print issue are for 3 months prior to the publication of the magazine, based on the data available.

Humble Pie

In a business organization, it’s easy to be drawn to charismatic or strong personality types for the obvious reasons. But what about humility?

I’m talking about people who do their job day in and day out, hoping for respect, but not expecting the spotlight. Those who are eager to appreciate others’ strengths, focusing on bettering the team. These individuals have a pretty good idea of what makes them tick, and fly under the radar in different ways. They are willing to accept critical suggestions to improve, and they admit mistakes, which is huge in my book.

I see humility as a key ingredient in the best leaders.

Beyond the age-old test of whether someone writes a thank you note–print or email–I think a good test for humility starts with the receptionist. How did they interact with him or her?

Once hired, these folks sometimes coast under the shadow of their team, but can be the secret to a company’s success. When humble individuals are at the top of an organization, they let team leaders do what they do best, and everyone is better for it.

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How Shifts in Shopping Have Changed Retail Construction

When large, big-box chain stores were being built during the 1980s and 1990s, breaking into the business was a relatively straightforward enterprise for smaller construction firms hoping to expand. While that pioneering spirit is still needed today to succeed, the digital age has dramatically changed consumer habits making retailers shift the way they design their stores to keep customers coming in, which means construction industry professionals need the experience and knowledge to complete these projects.

Understanding the Road Ahead

Tire management technology musts from Bridgestone's Rob Seibert.

Fuel for Thought

How to reduce your fleet's fuel use and costs.

Tips for Protecting Your Company’s Data

Tips for Protecting Your Company’s Data from Departing Employees.

Navigating Behavioral Health in Construction

How to manage the risks relevant to mental illness in today’s workforce.

How Pink Belts Roofing & Construction is Changing the Way the Industry Views Women in Construction

How Pink Belts Roofing & Construction is Changing the Way Canada (& Hopefully the U.S.) View Women in Construction

How Hoar Construction's Amye Carle is Redefining the Image of Risk in Construction

Sometimes the key to significant improvement is simple: Find a new perspective. And sometimes that new perspective is found where you least expect it. For Amye Carle, director of risk management at Hoar Construction, successful risk management comes from outside the industry entirely. According to Carle, risk can be broken down into two parts: the art of collaborating with the entire team and the science to support why any one company should do it.

4 Tips for Avoiding Jobsite Frustrations

The greatest contractors believe in preparing for success—because putting in some extra time on the front end will pay for itself many times over on the jobsite, through both reduced downtime and fewer moments of frustration.

To keep jobsites and processes running as smoothly as possible, the following four tips and tricks will always reward construction crews, no matter the job.

The Busy Season Isn’t Over Yet

After the devastating effects of Hurricane Florence crippled the East Coast economy, local businesses owners were left to pick up the pieces. In late September, thousands of residents and evacuees began the process of recovery from the estimated $38 billion in damages and will continue to recover for months to come. And, just as this issue went to press, Hurricane Michael reached the Florida coast, creating catastrophic damage and leaving 18 dead in its wake.

2018 Holiday Gift Guide

CAT FOOTWEAR

ExcavatorXL Boot

The launch of the waterproof ExcavatorXL boot series offers an EaseHD (heavy duty) footbed, an aggressive rubber bumper on the toe box for extended wear, and an extended contoured last for even more room and superior all-day comfort, and comes with a 60-Day Comfort Guarantee.

 

Are You Liable for Your Employee’s Sexual Misconduct?

It is tempting to turn away from the steady drumbeat of disturbing news regarding sexual harassment. Because this news is so unpleasant, it can be alluring to convince yourself that sexual harassment couldn’t (and doesn’t) take place on your construction sites or in your office.

October 2018 Construction Industry Stats

The Construction Business Owner team compiles statistics from multiple sources each month, including the American Institute of Architects (AIA) and the United States Census Bureau, to give you a better understanding of the current state of affairs for the construction industry. The statistics featured in each month's print issue are for 3 months prior to the publication of the magazine, based on the data available.

Assets

There are a few phrases that folks in our office are probably tired of hearing me say. One is,“Success is about finding good customers and keeping them.”

If you can keep good customers, you don’t have to be out looking for new ones all the time. It sure saves time and resources, allowing for better delivery all the way around. There is more time to concentrate on what you are supposed to be providing.

The simple fact is, there are many people who provide similar services. Many times, it comes down to the most valuable assets in the company–the ones who maintain the relationships–and solid service, of course. All things being equal, this somewhat intangible value makes the difference between a one-time build and a mutually beneficial long-term relationship.

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5 Tips for Protecting Your Equipment from Seasonal Damage

As your construction season winds down and colder weather blows in, now is a good time to think about what needs to be done to your heavy construction equipment, such as excavators, wheel loaders and articulated dump trucks, before winter arrives—especially if you are located in the northern region of the United States or in Canada, and your equipment won’t be used until after the ground thaws.

How to Position Your Business for Future Growth

Uncovering opportunities for growing any business, no matter the industry, requires that leadership be open to the idea of change. Technological advancements, a changing economic climate and movement within the industry are all contributing factors that can alter the outlook of any business.

Sometimes It’s Best to Expect Little in Return

During a breakfast with a customer this week, we got on the topic of expectations, business and beyond. We both had experiences where we did not expect a return, or anything for that matter, and we were just offering to assist someone else. It’s funny the way things works. Often, those were the times when we received a benefit. 

I interviewed a solid candidate recently who was with another company in Dallas and wanted to move back home. Over several conversations, we talked about his present job, the company, the future and plans for his life. I suggested that he talk with his present employer and give that a good chance first before he looks elsewhere. Why? Just because.

I perceive this person to be sound and a good hire and at the same time suggested what I would think I would do before looking elsewhere. I also expect that our paths will cross again somewhere down the road and he may be working with us one day. It’s about helping, expecting nothing in return. We hire for the long haul. We are not perfect, and maybe my approach isn’t perfect either, but it has worked in the past.

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The Future of the Field

There is a surge of change occurring in and around the industry. Because there is arguably no other industry more resistant to change than construction, the ascendancy will not come easily. But it will be worth it. Theoretically, there is no limit on how far this process will extend, or how quickly it will evolve. So, if you plan on working in this industry 5 or 10 years from now, you should embrace the change because one thing is certain: You will not be able to resist it. Technology and demographic changes will alter the entire work environment, including construction.

What’s Happening to Customer Service?

It’s the best of times. The construction industry is pulsing to the beat of booming business opportunities. Just as other sectors are benefitting, construction is enjoying the positive effects of a thriving economy, in which technological advancements change the way the industry is performing many tasks—from the mundane to the extraordinary—on a seemingly weekly basis. But in a culture of constant praise for technological innovation, trade skills are often neglected or stigmatized. So, for construction, it is as much the worst of times as it is the best.

What You Can Learn from AECOM Hunt's Approach to Jobsite Tech

Although it’s hardly a new solution for the industry, the use of 3D modeling on construction projects is still not ubiquitous on and off the jobsite. But there are many advantages to using a 3D model on even a smaller project for a long-term client. Take, for instance, the Walnut Grove Elementary School, an AECOM Hunt project still in progress in a suburb of Indianapolis, Indiana.

Travelers

From time to time, I am asked how we manage to build projects in multiple states, often a long way from here, and how we have been consistent for 35 years. The answer is pretty simple:

We have developed a group of traveling subcontractors and vendors who we trust. In return, they trust us. The key is working together.

That’s the way our world is built right now, and will probably always be. We depend upon our trade contractors and could not be successful without their input. It’s like a family. We all work together, help each other and deal reasonably with one another. When there is a problem, we try to work together to figure it out for our common customer. It’s worked this long, and we have built in 25 or 30 states over the years.

As an interesting aside, trade contractors almost always tell you that they can build a project out-of-state for not much more than working in their hometown. (Maybe not always, but often, depending on the trade.) This is because traveling crews are there to work. They focus and stay until it gets done.

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How Complete Data Connectivity Improves the Jobsite

In the current construction market, one of the key indicators of a company's future success is its ability or inability to adopt technology. And regardless of where your company stands in the implementation of various tech solutions, you should have a firm understanding of how your company could benefit from a completely connected jobsite.  

Solace

For nearly 30 years, I have spent the third weekend of October in Buffalo Gap, South Dakota. It’s an upland bird hunting trip, which is really more about so many other things, with the hunting license being the excuse. I returned Tuesday evening from my annual trip.

I’ve had a chance to view hundreds of sunsets and sunrises in my time there, as well as clear starlit evenings sitting by the campfire with friends I get to visit only one time a year. This picture is of the “Grouse Tree,” so named because sharp-tailed grouse call it home. Below its branches, some of the ranch’s best hunting dogs have been laid to rest over the years.

The ranch, and this spot in particular, have become special to me as a place of solace. As I type, I am reminded of the importance of honoring special places, seasons and traditions. In these moments, we can be thankful for what we get to experience and not worry about maybe what might have been or what we might have missed. It’s a gift.

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How to Navigate Tariffs in Your Construction Contracts

Like it or not, tariffs on steel and aluminum are real and very much in effect. And whether directly or indirectly, your construction company will be affected by them. Understanding just how much and in what way is a bit more difficult to define, though. We’re here to help. This week, we spoke with Mason Hester, a real estate and construction attorney and shareholder with Munsch Hardt Kopf & Harr, on how to navigate the contractual side of new construction projects in a post-tariff world.

Your Guide to State-by-State Bond Thresholds

Most contractors recognize the need for licensing and bonding in the construction industry, but it can be a challenge to understand the bond size requirements, as bonding thresholds are mandated by each state, not an overarching federal law. Read here for a list of the appropriate bond amounts required by each state to operate legally as a contractor.

400,000 Gallons

Several months ago, we set fuel tanks on one of our projects. While words can describe the process, this time lapse does it best:

Like most building contractors, we’ve found that starting things right with an eye on quality always ends up with the best results. In this case, constant monitoring was also key in beginning, which started with the manufacturer.

A few key elements we learned along the way to ensure quality:

• Tanks actually sit pressurized at manufacturer’s facility for about a year before shipping, where they are monitored for leaks. They are checked before leaving, upon arrival and until installed.
• Tanks are double-walled. The space between walls is called the interstitial space, and it is also pressurized and monitored from top-mounted ports.
• Once the tanks are in place, four measurements are being taken throughout the backfill process to determine any deflection. All measurements are taken by the same tech.
• If a dimension falls out of range, the tank is either deemed flawed or installed incorrectly and most likely will have to be replaced. Deflecting tanks equal leaks.

Quality control has always been top of mind for us, but I was impressed at the science these folks had made out of anticipating any potential problems and delivering a safe concept for their customer. I’ve said many times that in business, there is only one chance to get it right the first time, and this meticulous approach helps shore things up.

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Why It May Be Time to Bring Back Kudos

With the skilled labor shortage in overdrive mode, finding new employees is an issue almost every construction business owner is facing right now. But another side of that issue is figuring out best practices for retaining the valuable employees you already have. Because of this, the CBO team is constantly in search of methods and strategies for keeping employees engaged. We recently talked about one such strategy with Hillary Anderson, vice president of human resources at Werner Electric.

Opioids & the Construction Industry

In 2017, the United States Department of Health and Human Services declared the opioid epidemic a public health emergency, and the construction industry certainly isn’t immune. According to a recent national study, an estimated 15 percent of construction workers have a substance abuse disorder—nearly double the national average of 8.6 percent.

How to Overcome Equipment Management Inefficiencies

In today’s complex, high-stakes construction environment, information about equipment—its cost, whereabouts, utilization and operating condition—can be just as important as the equipment itself when determining project success. Business leaders in the infrastructure space understand the value of taking a holistic view of information to create synergy across field offices and jobsites. Business processes, including construction fleet management, need to be based on informed decision making.

4 Ways to Maximize Mini Track Loaders

In an industry faced with an increasingly high labor shortage, many construction companies are turning to technology and equipment to help fill in the gaps and improve efficiency. For contractors working in congested areas, a mini track loader offers a small frame size with big versatility. The machine is powerful enough to work alongside skid-steer loaders, compact track loaders and compact excavators, yet nimble enough to maneuver on partially or fully developed jobsites where larger equipment won’t fit.

What Impact Will Tariffs Have on the Construction Industry?

There’s no question that the Trump administration’s recent tariffs on steel and aluminum have been met with mixed reviews. As the effects of the tariffs begin to trickle down throughout the industry, a group of associations and businesses, called the Americans for Free Trade coalition, have joined together in a nationwide campaign against the tariffs. The goal of the coalition is to oppose tariffs and highlight the benefits of international trade for the United States economy.

How IoT Is Changing the Equipment Landscape

Construction contractors and materials companies have been some of the slowest industries to adopt business-enhancing technologies. While some larger firms have put in place computer systems to automate processes and improve information flow, many small and midsize companies continue to rely on manual, and therefore, highly error-prone methods to collect information.

Breaking Down the Advantages & Disadvantages of Becoming a Qualified Contractor

The construction industry is continuing its climb out of prerecession lows, meaning there are several opportunities for those in the field to create their own career path. While the industry is broad, many interested in starting or growing a business in construction should consider becoming a qualified contractor. This offers several benefits, but caveats also exist.

How the 179D Deduction is Driving the Industry Forward

Looking at the numbers, it is safe to say there have been major strides made in the area of energy efficiency in recent years. According to the United States Green Building Council, the green building sector is set to outpace overall construction growth and is anticipated to contribute 1.1 million jobs and $75.6 billion in wages to the U.S. by the end of the year.

4 Surprising Benefits of Industrialized Construction

When many people hear the term prefabrication, they think of uniform, unattractive tract housing—the “little boxes made of ticky-tacky” derided in Malvina Reynolds’ satirical anthem. But in fact, design for manufacture and assembly (DfMA) has the potential to help design and construction firms create innovative projects that bring clients’ visions to life in new ways.

Where Technology Is Taking Your Team

Autonomous cars will soon be a regular feature of American highways. The nation’s farmers, suffering from years of agricultural labor shortages, are banking on manufacturers developing robot swarms to make planting and harvesting cheaper and more efficient. Mining companies have already been employing autonomous trucks in various parts of the globe.

Influencers

When you walk into a conference room, the normal thought is that the authority figure is seated at the head of the table. At your next meeting, I’ll challenge you to look to his or her right, and take note of who’s sitting there. That person often has the leader’s ear.

I was talking to our CFO recently about a presentation he gave on these “influencers” in contrast to “authority figures.” I thought his points were worth sharing here.

An influencer:

• Has a reputation for being competent and showing good judgment
• Is known for discernment, and the ability to read between the lines
• Understands when to talk and when to listen
• Often serves as a mediator between the person of authority and the rest of the group.

As a general rule, we respect the authority figure’s position, even if we don’t respect that person. We respect the influencer as a person, and are more likely to go to him or her for counsel.

Given this insight, I’d argue that we might be chasing the wrong thing. Instead of working hard to achieve authority, perhaps we would do better to work on gaining influence, or better yet, being a leader who also has influence. At the very least, think about who one might target on a sales platform. The person in the highest position might not be the one who ends up making the call.

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5 Ways to Spot a Political Player Poised to Wreck Your Success

On paper, Brian was a rock star. In person, Brian was a costly mistake. His team recognized his disdain for real work, and they were appalled by his self-serving demands on those under his leadership. Sure, Brian flashed plenty of smiles. He slapped high-fives out on the jobsite and offered up empty promises like a political candidate, although he seldom kept his word. Poor supervision was Brian’s legacy. In short, he was a leadership disaster. The following are five ways you can detect a political player in-the-making like Brian.

Is the Hybrid Cloud for Me?

The cloud continues to play an increasingly larger role in the construction industry, but many construction business owners aren’t ready to overhaul their systems and go all in on the cloud just yet. Luckily, it doesn’t have to be an all-or-nothing proposition. Many are turning to a hybrid-cloud approach to manage their data and run their businesses more smoothly.

4 Ways to Help Your Estimator Prioritize & Create More Accurate Bids

All the time, effort and energy invested in winning a good construction contract or building a loyal customer relationship, which allows you to negotiate on a project, is wasted with an inaccurate or incomplete estimate. When this happens, firing the estimator will likely do your construction business more harm than good, as you need to continue bidding on a large volume of projects to keep the pipeline full. So, instead, you must help your estimator prioritize.

When Is It Time to Open a Satellite Location or New Market?

A strong market brings more customers, which often leaves business owners wondering if they should expand. Creating a strategy for entering a new market is a popular and attractive component of many business plans. Expansion is often an excellent growth engine, allowing a firm to grow, obtain and retain top talent, and position new talent in strategic roles. Satellite locations also offer contractors the opportunity to protect key accounts and customer relationships, and growing with customers helps maintain strong, lasting relationships.

The Rise of AI in Construction

Today, it seems as though everything is under construction. Be it downtown or beyond the county line, a walk outside unencumbered by a sleek looking building or bridge being built is almost a rarity.

Branding to Bring in Talent & Keep It

To be brutally honest: Prospective employees don’t need you. While the Bureau of Labor Statistics predicts construction jobs will grow 12 percent by 2026, the nation’s unemployment rate continues to hover around 4 percent or less. And you’ve likely heard stories about new employees not showing up for their first day of work, quitting after 2 weeks on the job, or simply biding their time, underperforming until they find a more desirable job. There could also be some other factors at play, but the current job market underscores their confidence.

What Is the Next Hot Technology in Construction?

Keith Boyer

Managing Partner
KMRD Partners Inc.

Pairing two of the most exciting technology-forward trends in construction—augmented reality (AR) and wearables—brings innumerable benefits and some risk.
Wearable technology can monitor physical status and environmental conditions, issuing alerts when conditions become dangerous. It can also increase worker productivity and work quality by generating task and situational awareness.

Key Steps to Combating the Skilled Labor Shortage

Let's talk about the skilled labor shortage. In a recent issue of theHuddle, our weekly newsletter covering top construction news and relevant content from around the construction industry, we spoke with two industry veterans about their takes on the shortage and how the industry can work together to combat it. Read more below. 

How You Can Use the Toyota A3 Planning Model in Your Business

Have you ever pulled up the "Print" options to select how you wanted a document printed, and saw one of the print formats as being an "A3?" It is an odd size—11.69 x 16.54in or (29.7 x 42.0cm). It's a traditional landscape size in Europe, Asia and rest of the world that uses the metric system of measurement. A3 is a paper size that is typically used for drawings, diagrams and large tables. It is also frequently used in laser printers to output two A4 pages as a spread.

Thoughts on Being a Connector

Some time ago, I figured out the value of being a connector, working to connect the right people who may not know each other, but would benefit from being acquainted. I’ve been doing this for several years now, and typically with no strings attached. The realty is that if you expect nothing in return, then one will never disappoint. The second reality is that generally much will be returned either now or in the future. Good people do not forget.

I try to connect people who have resources with people who might not, but have sound ideals. I might try to link a person who is down on their luck, needing a leg up, with someone who can offer assistance. One thing I have also learned is to always try to concentrate on quality people. We all have limited amounts of time to give and might as well spend it with good opportunities and good people, the best we can.

At least in my book, nothing worth doing is ever easy, and while their may be some strike outs connecting folks, there are also some singles and doubles out there.

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3 Tips to Ensure Heat Safety for Construction Workers

As many of us sit in air-conditioned offices and homes, it’s easy to forget that some workers have no choice but to work outside in the elements, whether it be rain, snow or severely hot temperatures. In 2015, 280 construction workers fell ill due to heat, according to the Bureau of Labor Statistics. Between the hot temperatures and extra layers of protective clothing, it’s important construction workers and their bosses are aware of heat safety.

The Power of “No”

Over the years, I have learned the hard way that saying “no” can sometimes lead to just as much success as saying “yes.”

It’s human nature to want to say “yes.” We all wish to be positive and help, but sometimes knowing our own limitations or those of our company means certain business situations or opportunities are not for us. The wisdom of experience can be key here, and I have a few scars on my back to prove it.

This week, I was reminded of my lessons learned. I had been working on a project, something with a duration of maybe five years for the company, and it looked pretty good in the beginning. As I learned more and evaluated the players, it did not seem as inviting, so I made the hard call and said, “Not for us.” Maybe I made the wrong decision, but I made one.

The recipient was taken aback at first, but when I explained the facts, I think he began to understand. The simple truth is that when a potential customer leaves the room, you sometimes make more money than you would have otherwise.

We all have finite amounts of time in our weeks, months and years. How we choose to spend that time, either saying “yes” or “no,” affects us in different ways. The magic is knowing when to say “no.”

 

 

 

 

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7 Tips for Preventing Subcontractor Collusion

Most public and some private companies require a competitive public bidding process to choose the best qualified contractors who will provide the lowest prices, the best services, and the most innovative solutions. The competitive process achieves those goals only when companies compete honestly and ethically and agree to the terms up front. Bid rigging disrupts this natural market competition and often results in shoddy work, cut corners and the use of subpar materials.

The Right Insurance Coverage for Home-Based Contractors

Because many homeowners’ policies cover only up to $2,500 for damages to business property, home-based contractors should not rely on their homeowners’ coverage to protect their business. Find out how to protect your home-based business here. 

Getting the Grades Right

Just a few years ago, a 10,000 sf slab pour was a large one. We are now in the 50,000 sf range.

We have recently made a series of large pours on a 15-acre project, using a laser CAD guided screed. It yields better, more accurate pours. Here is the run down on the means and methods of our equipment.

1. Total station surveying equipment is mounted to the laser screed. Grading information is filtered through CAD, which creates a 3-D model.
2. Slope and grade changes on a slab are handled by the screed, translating to less labor, more accuracy and the ability to make larger pours.
3. This also allows for a lower slump concrete with higher strengths and less labor. On this particular pour, we used a mid-range water reducer to give us more workable slumps but keep the water to cement ratio down. We get better early breaks which allow quicker access on the slabs.
4. Document control is a must. Ensure the latest, most accurate CAD drawings are used. A lesson learned.

 

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The Perils of Uninsured & Underinsured Motorist Coverage

The auto line of business is the loss leader for most, if not all, insurance carriers. Underwriters are scrutinizing companies’ hiring practices, fleet safety and maintenance programs and, most importantly, loss history. History has a way of repeating itself. An often overlooked coverage detail/limit within an auto policy is uninsured/underinsured motorist coverage.

September 2018 Construction Industry Stats

The Construction Business Owner team compiles statistics each month from multiple sources, including the American Institute of Architects (AIA) and the United States Census Bureau, to give you a better understanding of the current state of affairs for the construction industry. The statistics featured in each month's print issue are for 3 months prior to the publication of the magazine, based on the data available.

A True Warrior

The flow chart on this sidewalk sign caught my attention. Simple. All options lead to the “right” answer.

It reminded me of an important truth in sales. Every customer is different, needing a different approach to lead them to the end goal.

The object is the same for us–we wish to earn the business or gain the trust for a relationship. Most of the time, good customer relationships deserve and need a customized strategy and approach if we are to earn this business. To me, taking the time to respect the nuances is what turns potential customers into long time relationships. (This along with dozens of other things along the way.)

As to this sign, I got the haircut. While it might not have turned me into a “true warrior,” it was worth it. And I needed to reward this person’s creative efforts. Just because. And to say thank you.

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Your Guide to the Best Rental Equipment

In today’s construction environment, the name of the game is agility. With concerns about labor and job complexity, contractors are constantly looking for ways to make their businesses more nimble and profitable. Utilizing rental equipment is a cornerstone of building and maintaining a versatile organization. The following examines essential elements of the typical construction rental decision-making process.

3 Leadership Styles to Identify the Next Generation of Leaders

Thirty-eight years of exposure to the construction industry have provided me with a look at a broad spectrum of industry leaders, leadership styles and insights into a correlation between those varying styles and company success. These leadership styles have, of course, evolved over time and will need to continue their evolution in order to remain impactful.

Continued Training Pays Off with Long-Term Growth

There is always much discussion surrounding education, beginning with preschool and spanning all the way through the post-college years. And the question is always the same: How do we improve the quality of education to better prepare everyone to find their talents and equip them with the knowledge to excel.? As a CEO, president or business owner, candidates’ education levels are often a major consideration during the hiring process. But education doesn’t stop with high school or college graduation; it requires an ongoing pursuit of excellence and productivity at work.

Best Practices for the Empathetic Leader

In July, the construction unemployment rate hit 3.4 percent, the lowest monthly figure since January 2000, according to the Bureau of Labor Statistics. At the same time, the industry added 19,000 jobs. It’s safe to say the entire industry is feeling the effects of the skilled labor shortage. It’s more important than ever that contractors focus on creating an environment that both attracts skilled talent and provides those employees with the benefits and culture necessary to keep them around.

6 Steps to Build a Long-Standing Safety Program

Anyone involved closely with workplace safety has heard presentations, webinars or people just generally talking about the need to develop an organizational “culture of safety” in order to reap long-term, incident-reduction benefits. It’s a term that, despite being around since the Chernobyl disaster in the 1980s, recently has become a bit of a buzzword among safety professionals and modern business leaders.

How In-Cab Excavator Technologies Boost Your Productivity

Today’s crawler and wheel excavators offer technologies that make it easier for equipment owners and operators to minimize mistakes while using hydraulic-powered attachments. In fact, the integration of more sophisticated technologies, such as in-cab monitors, continues to improve attachment versatility and productivity. It’s easier to adjust and operate attachment rates, flows, pressures and preferences than ever before.

3 Mistakes that Could Derail Your Business Transition Plan

For most construction business owners, the sale of the company is the largest and most impactful transaction of their lives. The proceeds will likely be the main funding source for the next phase of their lives and provide financial freedom for them and their families.

While every business owner has different goals and objectives when it comes to transitioning out of their companies, there are plenty of common challenges along the way. Retiring owners can put themselves, their families and their businesses in a better position to succeed by avoiding a few common mistakes.

Inside the Minds of Modern Leaders

Today’s business environment requires a different kind of leader. Changing dynamics within internal environments and external landscapes are forcing leaders to think and act differently with increasing regularity.

Today’s leader is required to be agile, responsive and innovative, collaborative, thoughtful, and capable of thinking outside of the box. To accomplish this is no easy task.

Using Root Cause Analysis to Solve Common Problems

Leaders are usually quick to act. However, without careful examination of a problem, leaders often make decisions that simply treat a symptom, rather than address the true cause of an issue. Great leaders don’t make decisions based on superficial information; instead, they dig deep enough to provide real, problem-solving solutions.

10 Ways a Mechanic’s Lien Gets You Paid

Most people in the construction industry have heard of the term “mechanic’s lien.” But if you ask anyone to explain what a lien is, how it works or even how the word is spelled, you will likely learn that their knowledge about mechanic’s liens is basic at best. Aside from a general awareness that liens exist, perhaps the only other shared understanding is that liens are unfavorable.

How to Prioritize Your Business Goals

I recently returned from a trip, throughout which I coached clients from four different construction companies. The owners of these companies come from different backgrounds, have different goals for their businesses, employ teams with varying roles and personalities and entertain projects of different sizes. However, during our conversations together, we found there to be one common denominator: They are all busy, but they are all not earning profits at the pace they could be.

Why Diversity Matters in Construction

To me, the answer is two-fold.

While I think many may subconsciously be more likely to hire folks they easily relate to or find common ground with, we have found diversity matters. Whatever we think separates us–gender, culture or any other “norm”–we have so much more success by finding common ground and sharing different views in the process. Having said this, it also should be understood that we hire the most qualified person for the job, and do not bring in a team member for diversity’s sake alone.

The second part of the challenge of diversity and inclusion is more complex. For many reasons, those underrepresented groups are less likely to enroll in a building science or trade training program. Educational opportunities and options, traditional gender roles, instances of exclusion and non-family friendly work places are just a few of the possible setbacks. By looking for the best and the brightest, no matter what makes us different, we will develop better and more competitive companies.

This leads me to a statement from Warren Buffet that goes something like this: “One of the reasons for my success is that I am only competing against half of the population,” speaking to lack of female executives in the marketplace. It’s something to think about regarding diversity concerns, especially when the talent pool that exists today may or may not look like ourselves.

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4 Reasons to Upgrade Your Construction Equipment

The construction industry is comprised of numerous tools and equipment that are used for some heavy-duty work. Regular maintenance is necessary but you must also know when it is time to upgrade the equipment. Read on to know more.

What Happens When Equipment Fails?

Equipment is constantly being used in the construction business. This makes it critical that you inspect the construction equipment regularly so that they perform at their maximum potential every single time they are used. If you don’t conduct a thorough examination of the construction equipment, you could introduce safety hazards to the site.

Defective equipment will lead to serious injuries or fatalities, apart from causing system, structural and electrical failures. These will cause accidents like electrocution, collapses, burns or cuts. Additionally, you would be subjected to safety violations if you don’t meet the equipment safety requirements required by OSHA.

Let us look at some reasons why you must consider upgrading your construction equipment if you haven’t in a while.

4 Benefits of Upgrading Construction Equipment

– Reduced Downtime

One of the biggest reasons why many business owners think twice before upgrading the equipment is because they fear that it may disrupt the current workload and bring the processes to a halt. On the contrary, it would halt the processes for a longer period if unmaintained equipment breaks down and result in long stretches of downtime. Upgrading the equipment will make sure that your business continues to scale and meet new growth.

Substandard equipment also limits the efficiency of the employees and is more prone to frequent breakdowns. If you think that replacing individual components instead of upgrading the entire equipment would be more economical, you couldn’t be more wrong. Replace the current equipment with a more diverse tool set and you can be assured of reduced downtime.

– Increased Productivity

When downtime is reduced, it would automatically improve productivity. Loss of production is mainly connected to faulty and unmaintained equipment, which leads to downtime. Upgrading the equipment will allow you to prepare for the demands of bigger projects in the future. Other tools that help in increasing productivity in the construction sector include industrial weighing scales such as truck scales, floor scales, crane scales etc as it ensures better weighing of equipment along with accuracy, both of which boost the productivity.

– Increased Safety and Minimized Workplace Accidents

Generally, older equipment has fewer fail-safe mechanisms, industry-specific upgrades and monitoring instruments, all of which contribute to equipment malfunction and workplace accidents. You don’t want to provide an unsafe working environment and you definitely wouldn’t want to be held liable for any employee injuries caused by faulty equipment.

Currently, the construction industry claims the highest number of injuries as compared to any other industry in the U.S – don’t let your company contribute to that number. Upgrading to new equipment will help you reduce those statistics significantly. You cannot put a price on safety so don’t let the cost of upgrade deter you.

– Improved Employee Morale

Burdening your employees with using outdated machinery would affect their morale as not providing them with the best possible tools would send a message that they are not valued. As a business owner, you must ensure that your employees have the right kind of tools to work with as the success of the business relies on having appropriate tools and technology. Improve the employee morale by investing in resources that help them work better. Upgrading equipment will also help in retaining skilled individuals as well as training and creating new ones.

Speed, accuracy and efficiency are key factors that contribute to any business’s success. Upgrading equipment is one way to achieve this and make the processes more efficient and productive.

 

Kevin Hill heads up the marketing efforts at Quality Scales Unlimited in Byron, CA. Besides his day job, he loves to write about the different types of scales and their importance in various industries. He also writes about how to care for and get optimized performance from different scales in different situations. He enjoys spending time with family and going on camping trips.

Clear Your Head

It doesn’t matter if you are in the C-suite or any other position in the organization. For those who are motivated to keep moving forward, it’s hard to get everything off that “to-do list.” That’s the growth mindset. You are always thinking of the next thing to make bigger and better.

If I have a new idea, I either try to act on it right away or dictate the thought to my smart phone. (That’s if I can record soon enough not to forget.) I then wait for quiet time to act, and sometimes these items don’t seem so important.  For me, deleting these unnecessary tasks is almost as much fun as un-friending someone from Facebook when they use that platform for political ranting.

For the tasks that make the cut:

Figure out what can be delegated. Among other things, I discovered some time ago that relationships are what keep us in business. This is where I try to place my focus, and I’ve surrounded myself with others who can handle many of the other details involved in running our business. That’s something I am constantly reminding myself.

Make a point to give yourself uninterrupted time. For me, this is just about impossible in the office. I am an early riser, and often stay at home through 9 a.m. or so, creating a block of time to work through “heads down” tasks that involve my full attention. Also, Saturday’s are great for me when I get up with no deadlines, which allows my mind to soar.

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Socially Responsible Investments

To me, Socially Responsible Investing (SRI) may have a first cousin in the younger generation managers coming online today. These are people who care about ethical framework and community involvement on a deeper level. Gratefully, that’s been part of our corporate culture in different ways over time, and we’ve recently made our efforts more official. Giving back to the community can take several forms, but for us, there are three major resources:

Time. We’ve always encouraged those in the company to be active volunteers in their communities. This year, we formalized a program to show our support. It’s called Stewart/Perry Cares, and among several initiatives, allows each one of us to take a full day (paid) away from the office for service.

Space. Since we first moved to our new place about 10 years ago, we’ve been donating the space to non-profits who might need a venue for a meeting or event. We’ve lent out our conference room countless times, and allowed many groups of elementary school children to fish in our lake. Several fundraising dinners have taken place on our grounds. This is another easy way to contribute, and it’s fun for us as well.

Finances. We support several initiatives with our finances, from the Scouts to United Way, the Symphony and others. When it comes to investments, we consider both financial return and social or environmental impact, to find a win for both our company and the greater good.

Even small initiatives can make a big difference over time. To paraphrase John Harbert, an acquaintance from many years ago, “It’s not important how much you do, but that you do something.”

 

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11 Areas of Cyber Insurance You Should Know More About

Twenty years ago, no one had heard of cyber insurance, and a hacker was someone with a cough. As recently as 10 years ago, many people still did not know how exposed they were to clandestine attacks on their data.

Improve Bids with Database-Driven Numbers & Project Cost Histories

It is widely acknowledged that the construction industry is ripe for digital disruption. Yet, many general contractors and construction business owners struggle to determine which technology investments will deliver the biggest return on investment (ROI) for their companies. The good news is that many contractors are finding the largest ROI by focusing on the basics—establishing standardized, database-driven cost estimating processes.

How to Find the Right Bidding Software

Matt Vetter, vice president of Schafer Construction Inc., has tried a multitude of bidding tools over the years, with varying degrees of success. But, because his Brighton, Michigan-based firm is relatively small, he admits that “the tremendous learning curve and time commitment” involved in getting his team up to speed with an estimating software solution has not been a high priority.

Meet the Bid Boss

For most independent estimators, bid day isn’t (as the name suggests) one, crazy day that revolves around a single, prospective job. Unlike general contractors (GCs), who run a team of people grinding out final numbers, these estimators have rolling deadlines and proposals due daily, making every day bid day.

3 Main Ingredients in Colantonio Inc.’s Recipe for Success

As one of the largest industries worldwide, there is no shortage of great construction organizations outperforming year after year. However, there are a few companies that build a strong legacy of performance with a team that not only has created a superior culture, but also serves as a magnet in their market, geography and niches.

The competition looks at these industry icons and often seeks to capture their “lightning in a bottle.”

Common Licensing Pitfalls

States are cracking down on unlicensed contracting, implementing everything from sting operations and construction site sweeps to consumer hotlines that identify unqualified or fraudulent operators. But professional, licensed contractors can also be cited for unlicensed practice due to innocent mistakes and quirks made during state licensing processes.

Accomplishing More With Less

The construction industry is a very fragmented industry. This is among the reasons one does not see the large-scale technological advances like you might see in other sectors.

Having said this, I was with a group of young project managers today, and I was telling them how “things used to be.” Before power screeds and riding trowel machines, the rule of thumb was one finisher for every 1,000 sf. Last Friday I was on one of our pours and we had six of these riding troweling machines. The pour we made the next day was 50,000 sf. In today’s economy, there would be no way to find 50 finishers. Along the way, we also got smarter and started making these large pours starting around 1 am. Less traffic. Lower temps. Better quality.

As we talked a bit more, we all decided that the next 10 years will bring more changes than the last 40 years. Because of the labor market lowering its number, maybe our industry will be forced to accomplish more with less human capital. We should anyway.

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CFMA’s 2018 Conference Supports Education and Progress

The Construction Financial Management Association (CFMA) held its Annual Conference & Exhibition June 23-27, 2018, at the Fountainebleau Miami Beach in Miami Beach, Florida. Since beginning in 1981, CFMA has focused on the educational interests and needs of construction financial professionals and the industry partners who serve those needs. Represented in membership by varying types of contractors, CFMA currently serves more than 8,200 members in 98 chapters throughout the United States and Canada.

August 2018 Construction Industry Stats

The Construction Business Owner team compiles statistics each month from several sources, including the American Institute of Architects (AIA) and the United States Census Bureau, to give you a better understanding of the current state of affairs for the construction industry. The statistics featured in each month's print issue are for 3 months prior to the publication of the magazine, based on the data available.

8 Steps to Successful Subconsultant Relationships

Prime design consultants often have a great deal of project control and leverage. Unfortunately, such responsibilities increase the potential for significant risk. This is especially true if errors or omissions committed by subconsultants cause damage to the client or project. Under such circumstances, the prime will most likely be held liable as if they committed the negligent acts themselves.

Understanding the Key Role of Municipal Boards in Commercial Development

For many communities throughout the country, each municipality has its own elected and appointed officials who oversee the governing of their respective communities and are tasked with charting and shaping the growth of their towns.  This system of checks and balances plays a primary role when building a new commercial facility; these are the people who approve—or don’t approve—requests for new construction, expansion and/or renovation of an existing space. It is imperative for those looking to expand or develop new areas to get to know these individuals and understand the processes of the

Becoming Inclusive

Last Saturday evening, when I attended KultureCity‘s KultureBALL, I was reminded once again what can happen when a grassroots idea gets the right leadership.

Julian Maha and his wife Michele Kong, both medical doctors, founded KultureCity in 2013 after their oldest child was diagnosed on the autism spectrum. Ever since, their goal has been education, inclusion and to provide the alteration of public spaces, making them more sensory friendly.

KultureBALL is their annual event where celebrity and philanthropy walk hand-in-hand to promote acceptance, foster awareness and raise funds for programs benefiting children and families with autism. Football great Tiki Barber was there, along with Hamilton star Leslie Odom Jr., who I enjoyed sitting with at dinner. Both of these men have children affected by autism, and both have stepped up to set change in motion.

KultureCity has been around 5 short years, but as you can see in this video, the difference they have already made is staggering. As I walked around that evening, hearing the stories and seeing the map of all the current event spaces that have been changed, I found myself getting excited for what’s ahead. I was reminded that a little spark by two individuals can light a fire in the community and then maybe a nation.

 

 

 

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How to Build a Strong Contingency Plan for Hurricane Season

While it is not possible to fully predict when each hurricane will occur, contractors can prepare for all hurricanes with a documented and well-rehearsed contingency plan. Your guide to constructing a strong contingency plan for hurricane season.

Power Up

This week, I visited one of our projects that covers several acres. It’s not ready for permanent power, but also needs power in a lot of locations. In the past, we’ve run conduit to a stationary board, which works, but has its downfalls. If there is too much load demand, breakers get tripped and the whole job shuts down until the problem can be fixed. There is very little flexibility to relocate easily. As walls go up, locations have to be changed. In short, productivity is lost.

On this project, we’ve brought in temporary power distribution units. Simply put, these units are daisy chained throughout the job, so that we now have multiple temp electrical locations. They are easy to move, with no single source. A few advantages:

• Safety. There are fewer cords, less chance of overload and all plugs are GFI protected.
• Portability. We can easily move the units from space to space to accommodate changing needs.
• Convenience. There are multiple plug in spots for equipment that needs to charge overnight.

While temporary power distribution units are frequently used in industrial construction, we are seeing potential with these system in our commercial mix. Good call by the management on this job.

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Construction Efforts Scale with New Drone Mission Capabilities

Drones are already making a difference at construction sites. Companies are collecting data to monitor progress, optimize job reports and complete many other construction functions by deploying these small, unmanned aerial vehicles (UAV). Find out how they're doing this here. 

12 Steps for Developing and Driving Stronger Business Strategies

Benjamin Franklin is credited with saying, “If you fail to plan, you are planning to fail.” The purpose of business planning is to set overall goals for your business and to develop a strategy to achieve them. This includes implementing deducting and balancing approaches, making decisions, setting a destination or direction, and action planning. However, many construction companies have no long-term plan, with some even touting, “We just bid and pray.”