So we went through all of the steps of producing a good business plan for 2010, now what? First let's review what we have covered so far. Part 1: Building our Flow Work Part 2: Projecting our Current Backlog Part 3: Dealing with Our Pipeline Part 4: Projecting Overhead and Calculating ProfitIf we have taken time to calculate each of the numbers and analyze each step we have a very realistic ......

When managers in construction start beating the drum of more production, the message that is typically received from the crews is “you need to be working harder”. While this may be true in some instances, most of the time this is not what is being said. In construction, especially for subcontractors that are performing the labor, money is made or lost in the amount of work being put in per hour charged ......

As subcontractors, especially during tough economic times, sales is a tougher and tougher battle. In the US there are approximately 800,000 specialty subcontractors, which means that whatever line of business you are in, there is a line of competitors for each every opportunity out there. So how do you sell a job? Low price becomes the quick and simple answer, since the economy has changed it ......

In construction, talk to anyone about the single greatest challenge in surviving in the industry and it is risk. "Based on the risk, add more profit to it." "I am not going to do a job that difficult for that amount, I need to cover my risk." "We shouldn't bid that project, it is too risky."Just some of the common quotes you can hear around the offices of contractors nationally. Risk is more ......

So what does it take to be a good estimator? Being great with numbers? Having a desire to color on drawings all day? There are a few key traits I have found in my career that really separate the great estimators from the rest of them. Let's recall how I defined an estimator's job as: finding the lowest cost solution to the project as would be acceptable to the client while identifying the potential ......

For subcontractors, the best way to control and increase profit is by managing labor productivity. Too often, project managers, foreman, and executives focus on material buyouts, squeezing subcontractors, and cutting back on overhead to make gains on profits, but these actions pale in comparison to what can be accomplished by having highly productive labor. There is no doubt money to be made by being ......

Business management for years has taken the advice of statisticians: that if you don’t or can’t measure something, then you can't manage it. In construction, this simple truth is the key to being successful. Management of bidding, projects, labor, or profits is not just a group of tasks that you must perform, it is taking in facts, analyzing those facts, coming to conclusions, taking action, and then ......

Measurements are critical to good construction. Not just in constructing walls, placing tiles, and balancing mechanical systems, but also in tracking contractor's performance on the project. A minute cannot go by where workers are not measuring boards, conduits, walls, concrete volumes, and hundreds of other things on a construction site, but are contractors measuring things for their own betterment? ......

Measurements are critical to good construction. Not just in constructing walls, placing tiles, and balancing mechanical systems, but also in tracking contractor's performance on the project. A minute cannot go by where workers are not measuring boards, conduits, walls, concrete volumes, and hundreds of other things on a construction site, but are contractors measuring things for their own betterment? ......

By now most of us have seen the change order and contract boat image that has been circulating around the internet over the past several years. The big boat is rightly called the change order and the small dingy is called "Original Contract". This brings forward a very interesting question about how people think. When you view the image it enters into your mind that this must be Contractor's set-up ......

If you have been involved in bidding work you have probably at one point in time been apart of the Best and Final Offer (BAFO) routine. In private work it is typically called "scoping out" the sub numbers. It is a process where you are expected to give your best and final proposal for the work after you have turned in your actual bid number. It may be preceded with a list of questions or changes in ......

When LEED was introduced it became a revolution in the construction industry changing the way Owners, Designers, and Builders approached jobs. The major objective was to create "sustainable" buildings, or in another words buildings that would utilize the least amount of resources to construct and operate over their lifespan including ensuring that the lifespan was maximized to reduce demolition and ......

We have recently decided to introduce an incentive program for our superintendents in order to improve productivity and ensure that the schedule is met and customer satisfaction is attained. Here is a synopses of the program... Bonuses are to be awarded and evaluated on a project by project basis. In order to qualify for a bonus the projectmust have a contract amount of $30,000 or greater and pass ......

For those of us in the construction industry, we know the Estimators that are more cynical than the average Joe. They appear to be more prevalent than the fun loving young estimator. The duties of an Estimator change that fun loving young kid into the cynic through years of performing one of the most difficult jobs in construction. So what makes it such a difficult job? The most difficult part of ......

So what does weight loss and construction productivity have in common? If you track the inputs you are much more likely to get better results. In 2008, a study was published in the American Journal of Preventive Medicine that shows that keeping a “food diary” may double your weight loss. What they actually found was that the more participants recorded what they ate, the more weight they lost in the ......