http://www.constructionmonkey.com/collaboration/rssConstruction Monkey.com(c) 2026 Atalanta Enterprises, Inc.Craig PierceSo 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 ...http://www.constructionmonkey.com/collaboration/post/1094/weight-loss-and-construction-productivity10/2/2014 6:33:46 PMCraig PierceWhen 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 ...http://www.constructionmonkey.com/collaboration/post/93/how-to-improve-construction-productivity6/13/2014 1:32:35 PMCraig PierceFor 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 ...http://www.constructionmonkey.com/collaboration/post/92/focus-on-productivity-to-improve-profits6/5/2014 2:43:15 PMCraig PierceBusiness 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 ...http://www.constructionmonkey.com/collaboration/post/91/you-cant-manage-what-you-dont-measure6/3/2014 3:54:50 PMCraig PierceMeasurements 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? ...http://www.constructionmonkey.com/collaboration/post/90/measurement-is-the-key-to-successful-construction5/12/2014 3:12:05 PMCraig PierceSimply put: productivity is king. As a subcontractor you are required to perform many tasks; from generating an estimate and proposal, to safely performing work, as well as everything in between. So why do I believe that productivity is king? Performing work safely, in compliance with specifications, and to certain quality standards are non-negotiable items. If you cannot do these things well, then ...http://www.constructionmonkey.com/collaboration/post/89/how-important-is-productivity-to-a-subcontractor8/1/2013 5:55:08 PMschultissundbergWe 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 ...http://www.constructionmonkey.com/collaboration/post/88/incentive-programs-for-superintendants1/2/2012 3:09:49 AMjamieIt’s that time of year again…time to put together your company projections for 2012! You may be in the process of crunching numbers to let your partners, bankers, and other stakeholders know your company’s outlook for 2012. Hopefully, 2012 will shape up to be a great year! Instead of rewriting what has previously been written in past articles, below are some articles to reference to assist you in ...http://www.constructionmonkey.com/collaboration/post/87/projecting-201212/29/2011 7:07:32 PMCraig PierceConstruction subcontractors tend to be more like Aerosmith than like an airline. What exactly do I mean? Well to further the analogy, let’s look at the definition of both of these entities. Rock bands are made of a small group of talented people that perform specific functions. As the band forms it is not a big secret what each person is to do, however, there are not written rules on how this ...http://www.constructionmonkey.com/collaboration/post/86/is-your-company-aerosmith-or-an-airline9/27/2011 1:48:50 PMjamieThe most frustrating experience for a project management team and the owners of a construction company is project fade. The process of margin disappearing as the project becomes more complete deteriorates moral, the balance sheet, and may threaten the ability for an organization to continue as a viable concern. Fade comes from many causes: optimistic estimates, poor team performance, work outside ...http://www.constructionmonkey.com/collaboration/post/85/project-fade-discussion-board8/17/2011 4:19:14 PMCraig PierceBest and Final Offers (BAFO) are probably the fastest growing trend in construction, especially given the economy today. In a previous blog, I talked about the ethics of the BAFO process. There are legitimate reasons to utilize the process, but you have to have integrity from everyone involved or you may just be another bid shopper. When dealing with vendors you need to ask yourself several questions ...http://www.constructionmonkey.com/collaboration/post/84/should-you-bafo-your-vendors6/9/2011 3:29:54 PMCraig PierceLast week I wrote about how proposals could help you win work more than numbers. I know that this is a controversial issue and most contractors are convinced that low cost will win the project every time, but in my career that is simply not true. Your customers are looking for the "lowest responsive bidder" and outside of someone buying the project or being smarter than you if they are much lower ...http://www.constructionmonkey.com/collaboration/post/83/how-to-sell-a-project-beyond-cost6/6/2011 11:19:07 PMCraig PierceTypically the Get Work activity for a project in construction is focused 95% on getting the "right" number and 5% on showcasing that number to the client (i.e. the proposal). Most companies don't have a Get Work department or Business Development; instead they have an estimating department. Why is that? It is confusing to me, because most contractors insist that they sell work by having the most complete ...http://www.constructionmonkey.com/collaboration/post/82/proposals-not-numbers-win-projects6/2/2011 3:28:30 PMCraig PierceIn part 1 we covered the basics of the Acquisition Team (A-Team), in this installment I would like to discuss some of the mechanics of procuring work. Like the construction of a building, procuring work does not just happen, it comes about through hard work and planning and a very focused effort. The most skilled craftsman without engineered drawings cannot accomplish as much as those with detailed ...http://www.constructionmonkey.com/collaboration/post/81/enhance-your-a-team-part-24/28/2011 3:35:20 PMCraig PierceRecently Ted Garrison from NCS Radio interviewed Terry Kramer with Kramer Management Consulting regarding acquiring more profitable business. In the interview the theme was repeated over and over that construction companies need to focus more attention on the Work Acquisition Efforts from the personnel they us to the systems utilized. It really struck a chord with me since the past 20 years of my ...http://www.constructionmonkey.com/collaboration/post/80/enhance-your-a-team-part-14/26/2011 5:21:08 PMCraig PierceIt appears with 2010 behind us, the worst year of this economic calamity is behind us, that is good news. This upcoming year should show new projects being started which should allow for expansion in revenues and margin. This increase in construction work however will not be dramatic and increases will be slight over one of the worst years in a generation. So how are you going to handle the increased ...http://www.constructionmonkey.com/collaboration/post/79/increase-productivity-in-your-construction-company1/19/2011 5:19:53 AMCraig PierceThe most successful companies in history have gathered, analyzed, and reacted to the data that is most critical to their survival and success. In retail, Walmart extended this to a whole new level by grabbing real time sales data and transmitting that to all of their managers. The success of the company was in part due to the fast analysis of data and the retailer's ability to change their current ...http://www.constructionmonkey.com/collaboration/post/78/construction-analytics-conalytics10/25/2010 3:01:00 PMCraig PierceYesterday the Department of Commerce came out with the July 2010 construction numbers and the current state of affairs is not very attractive. The numbers represent the seasonally adjusted annual value of construction work put in place and guess what, the numbers look more like the turn of the century then they do the year 2010. The drop off has been so severe over the past 3 years we have wiped out ...http://www.constructionmonkey.com/collaboration/post/77/construction-the-lost-decade9/2/2010 2:26:26 PMCraig PierceWhat is the best way for a contractor to improve their profits? Minimize risk. Let's face it, contracting is another form of gambling. When we look at all of the stipulations placed upon subcontractors from paid if paid clauses to loose lien rights to un-executed change orders for work already completed, the practical business is more of a gamble than we would like to admit. So how do we take this ...http://www.constructionmonkey.com/collaboration/post/75/increase-profits-minimize-risk7/29/2010 4:05:30 PMCraig PierceThe current Congress has passed the 2,300 page Financial Reform Bill which will have major impacts to the construction industry. After the 2008 elections there were three bills that were the focus of the new government: Healthcare, Global Warming, and Financial overhaul. All three of these have major impacts on the construction industry and with the Global Warming bill effectively dead, it is clear ...http://www.constructionmonkey.com/collaboration/post/73/what-financial-reform-means-for-construction7/29/2010 2:08:35 PMCraig PierceSun Tzu wrote the Art of War in the 6th Century BC. Since that time military experts have considered it a complete view on how to operate a military machine and business scholars have claimed it applies to business dealings as well. I can tell you that there are several parts that directly apply to Estimating in Construction. Sun Tzu says: "In respect of...method, we have: Measurement Estimation ...http://www.constructionmonkey.com/collaboration/post/72/the-art-of-estimating6/25/2010 3:20:35 PMCraig PierceWhere are the true Masters in Construction? I am not talking about those that have ventured out to get a Masters License in their prospective trade, I mean real masters. American culture and probably world wide to some extent has moved us away from becoming masters at what we do. Marketing pushed to us is stated as "buy this or do this and get an instant result". We start to believe that in a very ...http://www.constructionmonkey.com/collaboration/post/71/be-a-master-in-construction6/23/2010 6:48:31 PMCraig PierceOne of the largest complaints I hear is "the quality of the workforce is not what it used to be". Whether I am talking to union or non-union, family owned or large business, the message continues to be the same. Besides each generation believing that they are the best generation, is there any truth to this claim? I think so. I don't have any raw statistics to give an accurate assessment, but from ...http://www.constructionmonkey.com/collaboration/post/70/where-have-the-good-craftsmen-gone6/4/2010 1:48:33 PMCraig PierceIt appears as if the market is recovering (at least there are more projects out there to be bidding on), so how can you win that work to turn it from an opportunity to revenue? There are three factors that weigh heavier than any other when it comes to winning new work and if you are bidding many different projects (which I would bet you are), you should be looking at which ones fit this criteria first ...http://www.constructionmonkey.com/collaboration/post/69/best-way-to-win-that-next-project5/25/2010 2:46:16 PMCraig PierceAlmost every construction company out there sees the value in Estimating software and utilizes some form of it. I will agree that not every company is utilizing a specifically designed piece of software from one of the major publishers to estimate their work, but if they haven't purchased the latest version of Estimation, they at least have an in-house spreadsheet system. So why don't companies see ...http://www.constructionmonkey.com/collaboration/post/68/is-pm-software-a-waste-of-money5/20/2010 3:35:02 PMCraig PierceArizona recently took an unprecedented step in passing a law that required the state to action on a federal issue. I am not going to get into the middle of the political ideals at battle here, but I do want to look at the ramifications it could have on the construction industry. People and companies will obviously be directly affected by this legislation. The impacts will come from two fronts: adversion ...http://www.constructionmonkey.com/collaboration/post/67/will-anti-immigration-law-affect-you5/18/2010 3:43:31 PMCraig PierceLast month a terrible accident happened aboard the Deepwater Horizon oil rig, killing 11 workers on the platform and creating an oil leak that is still no fully contained. The investigation of what happened is no where near complete, but with the full weight of billion dollar companies, the US government, and plenty of interested parties (fishermen, enviormentalists, tourism boards), there will be ...http://www.constructionmonkey.com/collaboration/post/66/what-can-the-rig-disaster-teach-a-subcontractor5/17/2010 1:52:50 PMCraig PierceConstruction companies stand on three (3) pillars that define good business; Get Work, Do Work, and Monitor Work. If all three of them are done correctly and efficiently than the business will thrive. Getting work has a lot to do with generating an estimate on a custom product that has never been produced before, so what ensures that you have a good estimate? In the manufacturing world, it becomes ...http://www.constructionmonkey.com/collaboration/post/65/what-makes-a-good-estimate5/3/2010 1:30:03 PMCraig PierceYesterday was Earth Day, a yearly mark that is growing in significance around the world. It is a time for us to understand the issues about our impact on the environment. I am not going to get into the politics (and yes there are a lot of politics around Earth Day) about the environment, but would like to talk about the impacts to us in construction. As most of us are aware, there has been a growing ...http://www.constructionmonkey.com/collaboration/post/64/what-does-earth-day-mean-for-construction4/23/2010 4:09:07 PMCraig PierceGiven the turmoil in the marketplace over the past 2 years, I have heard repeatedly from different contractors that they are looking to move into different markets. We need to focus on larger projects. We need to get into government work. We need to go after renewable energy work. We need to move into City x, y, or z. Most of these comments and business direction are said out of necessity. Everyone's ...http://www.constructionmonkey.com/collaboration/post/62/want-to-win-better-projects4/19/2010 4:43:14 PMCraig PierceThe vast majority of subcontractors in the country do not have a dedicated Safety Manager, so will hiring one make a difference? Short answer, yes. The real answer is much longer. Most subcontractors (by quantity) don't have a safety program let alone a safety culture, so there are other steps that could be taken prior to hiring a Safety Manager, yet a Safety Manager can help in those endeavors as ...http://www.constructionmonkey.com/collaboration/post/61/will-hiring-a-safety-manager-matter4/14/2010 12:57:30 PMCraig PierceIn 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 ...http://www.constructionmonkey.com/collaboration/post/60/risk-mangement-what-is-your-role4/12/2010 3:00:34 PMCraig PierceThree months ago, I took a stab at what I thought ObamaCare meant to Subcontractors. In reviewing that after passage, I still agree with my thoughts in that article. I did not address in that article, whether there would be more or less construction under the near universal health care. I would have to agree with Jim Haughey of Reed Construction Data that construction will not fundamentally change ...http://www.constructionmonkey.com/collaboration/post/59/is-there-more-work-with-obamacare4/9/2010 2:46:48 PMCraig PierceIn any economy and in any service industry, there is a very fair question: "What Value Do You Add?". This question goes for companies and employees and in this economy it becomes imperative to not only ask the question, but to answer it correctly. So have you asked yourself the question? Any good answers? Let's look at the basis of what we do in Construction. We solve problems. Owners and/or Consultants ...http://www.constructionmonkey.com/collaboration/post/58/what-value-do-you-add4/8/2010 1:24:53 PMCraig PierceFor 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 ...http://www.constructionmonkey.com/collaboration/post/57/life-of-an-estimator-tougher-than-you-think4/6/2010 2:16:53 PMCraig PierceAnalytics is simply the science of analysis. In construction, and probably more specific in the subcontractor community analysis of data is few and far between, even though our industry is ripe for analytics. In for analytics to be worthwhile, there are two conditions that really need to be met: (1) that there is a lot data generated and (2) that the data is coming from events that repeat themselves. ...http://www.constructionmonkey.com/collaboration/post/56/analytics-the-best-way-to-improve-your-business4/2/2010 1:43:46 PMCraig PierceThe past two years have been the worst global economic times in more than a generation and it is anyone's guess if we are coming out of it or if there are more challenges ahead. Change for anyone is difficult and for the vast majority of us it does not happen until we are up against the odds. So why is it that when I look at Construction, it does not appear that in the last couple of years we have ...http://www.constructionmonkey.com/collaboration/post/55/can-contractors-change3/29/2010 3:22:49 PMCraig PierceIn retail and real estate there goes a saying that the three most important things are location, location, and location. In construction there is a similar truth that the three most important things are relationships, relationships, and relationships. Given the economic state of the economy (construction has contracted by as much as 60%), winning new work to feed the business is more and more difficult. ...http://www.constructionmonkey.com/collaboration/post/53/three-most-important-things-to-being-a-contractor3/25/2010 2:47:53 PMCraig PierceCustomer service in a service industry is the key to success. As specialty contractors, the service we provide is sometimes the only thing that makes us different than our competitors. So what is Customer Service? I would have to assume that everyone is doing the big things like answering the phone, being polite, responding when you should respond, wearing appropriate clothing in Customer's offices, ...http://www.constructionmonkey.com/collaboration/post/51/customer-service-it-is-about-the-little-things3/10/2010 3:21:52 PMCraig PierceIn Construction the #1 rule is safety. Without the principal of safety, the things we build and the people we employ will not be around once we finish. I hope that fact is not up for debate, so then the question is what is the second rule of contracting? Cost Control. This past weekend millions of citizens went to their local Home Depot, Lowes, or other hardware store to purchase a new light fixture, ...http://www.constructionmonkey.com/collaboration/post/50/cost-control-is-constructions-2-rule3/8/2010 2:45:44 PMCraig PierceIf 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 ...http://www.constructionmonkey.com/collaboration/post/49/best-and-final-offer-are-they-ethical3/4/2010 4:32:39 PMCraig PierceIn construction there are the general trades and then the infamous specialty subcontractors. Ever think what is so special about the specialty trades? The construction industry is one of the most challenging industries out there to perform well, yet due to regulation and general cultural thought most people believe they can do it. When it comes to the general trades (excavation, rough carpentry, ...http://www.constructionmonkey.com/collaboration/post/48/what-makes-a-specialty-contractor-so-special3/2/2010 3:48:43 PMCraig Piercepro·duc·tiv·i·ty (pro'duk-tiv'i-te, prod'?k-) n. The rate at which goods or services are produced especially output per unit cost of labor. Or if you prefer how much does it cost to install a unit. For subcontractors this is a very critical item since the majority of our profit is dependent on the productivity rate. It is also much more difficult in construction since the units and the ability to ...http://www.constructionmonkey.com/collaboration/post/47/how-to-improve-construction-productivity2/25/2010 2:34:10 PMCraig PierceAs spring approaches so does one of the two trade show seasons. With the economy difficult, it begs the question: Should we spend money on attending a trade show? Just a business question my friends. Like any other expenditure it depends on whether you can achieve more value than money you spend. So I guess the real question is what kind of value can you get from a trade show? Trade shows take ...http://www.constructionmonkey.com/collaboration/post/45/are-trade-shows-a-waste2/23/2010 3:43:22 PMCraig PierceIf you are bidding work out there, you are going to be a price taker and not a price setter. In fact throughout the construction industry whether it is bidding, negotiated, time and material, or any other means of procurement you are a price taker and not a price setter. What do I mean by price taker? Someone where their price is dictated by others whereas price setters dictate the price of their ...http://www.constructionmonkey.com/collaboration/post/44/bid-work-risk-taker-price-taker2/15/2010 4:10:54 PMCraig PierceAs I sit here and package up chocolates for the wife and hope she got me that hoodie-footie I have been seeing so much on TV, I have been thinking about my 2nd love Construction. It seems like the other 364 days of the year construction gives us plenty of reasons to complain and sometimes hate it, but let's reflect on Valentine's Day all of the reasons we love this dynamic industry. We build stuff! ...http://www.constructionmonkey.com/collaboration/post/43/construction-my-valentine2/12/2010 3:28:05 PMCraig PierceConstruction is a massive industry and has promoted innovations in tools, equipment, products, and of course the structures that are built. With all of that said it is not hard to state that Construction is a science. Of course to those of us in the industry we would argue that it is also an art form. What I would really like to focus on the is the science part of construction and see if we really ...http://www.constructionmonkey.com/collaboration/post/42/treat-construction-as-a-science2/11/2010 3:23:45 PMCraig PierceWhen you ask Owners what their top priorities for their next construction project, quality control is always near the top if not at the top. With the slow down in the economy the concerns over budget are less than before and given that no one is too busy, the schedule takes care of itself. So what is quality control? Simple, the management of the end quality of the product. However, let's remember ...http://www.constructionmonkey.com/collaboration/post/40/quality-control-be-in-control2/5/2010 1:22:07 PMCraig PierceI have been reading and having discussions on whether it is worth it to save money on safety. Excuse me? Why are they mutually exclusive? If you execute a smart and well orchestrated safety program it actually reduces your cost, it does not add to it. The easy items are the insurance rates you experience and your ability to win projects based on your safety program and performance, but there is ...http://www.constructionmonkey.com/collaboration/post/39/do-we-have-the-money-for-safety-excuse-me2/4/2010 4:17:38 PMbinningMEP Coordination: It’s Expensive to be Cheap. You’re a contractor and you have been awarded a contract to do what your good at, build a building. You assemble a team to manage and grow it during its life cycle. You’ve done this a million times before and you’re good at it. That’s why you got the job right? But, things are different now aren’t they? Times are tougher in this difficult economy and ...http://www.constructionmonkey.com/collaboration/post/37/mep-coordination-it_s-expensive-to-be-cheap2/1/2010 11:51:45 PMbinningRevit: No Place for Amateurs Let us look at the typical building information modeling services firm and how things are done. Typically, a CAD manager is hired to create all of the CAD standards that will be used in the firm. He or she will be given the design from the designer and create a “working” file to eventually be used in a set of construction documents or plans. As they get busy so they ...http://www.constructionmonkey.com/collaboration/post/36/revit-no-place-for-amateurs2/1/2010 11:45:24 PMbinningRevit: An Asset or a Cool Cartoon? According to Wikipedia, Autodesk Revit is architectural building information management (BIM) software for Microsoft Windows, developed by Autodesk. It allows a user to design with parametric modeling and drafting elements. BIM is a revolutionary new Computer Aided Design (CAD) paradigm that allows for intelligent, 3D virtual rendering and parametric object-based ...http://www.constructionmonkey.com/collaboration/post/35/revit-an-asset-or-a-cool-cartoon2/1/2010 11:44:50 PMbinningMEP Coordination: why it’s expensive to be cheap. You’re a contractor and you have been awarded a contract to do what your good at, build a building. You assemble a team to manage and grow it during its life cycle. You’ve done this a million times before and you’re good at it. That’s why you got the job right? But things are different now aren’t they? Times are tougher in this downturn economy and ...http://www.constructionmonkey.com/collaboration/post/34/mep-coordination-why-it_s-expensive-to-be-cheap2/1/2010 11:41:41 PMCraig PierceWhen 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 ...http://www.constructionmonkey.com/collaboration/post/33/sustainable-yes-leed-be-careful2/1/2010 4:59:19 PMCraig PierceContracting is a tough business. Our industry has a reputation among the community of having little or no ethics. That reputation is earned due to our poor communication, but do we also encourage that when the economy gets more difficult? It is hard to say that our ethical boundary is not a band or gray area if you will. I can guarantee to you that I will not steal; however, if my family was going ...http://www.constructionmonkey.com/collaboration/post/32/is-the-economy-affecting-your-ethics1/29/2010 4:32:49 PMCraig PierceOne of the biggest items on the minds of the American public is jobs. With recent unemployment rates and especially construction unemployment rates, it is a very real concern. So how do we create construction jobs? Since most of us are not in Congress nor do we yield a money supply that could finance new construction our options are limited. Those options seem to get all of the headlines and with ...http://www.constructionmonkey.com/collaboration/post/31/how-to-create-more-construction-jobs1/28/2010 5:16:10 PMCraig PierceIn today's world of CADD, fast track projects, out sourcing, reduced design staffs, it is impossible to get through a project without at least a dozen new sets of drawings and hundreds of RFIs being issued. Gone is the day of having a complete and accurate set of drawings prior to starting a project. I remember and loved the Corps of Engineer projects because I could always get a set of documents ...http://www.constructionmonkey.com/collaboration/post/30/do-you-know-what-you-are-building1/25/2010 1:38:54 PMCraig PierceWith Copenhagen behind us and health care on the ropes, will Cap and Trade be on the block? The US House of Representatives have passed a bill, but the Senate has not taken it up yet. The smart money right now would say that Cap and Trade will not be passed with the pressure around the economy, but let's not forget the ruling that the EPA made that they can regulate carbon dioxide. They may be able ...http://www.constructionmonkey.com/collaboration/post/29/cap-and-trade-what-to-expect1/22/2010 9:43:28 AMCraig PierceBonus programs can really suck. Whether you want to call them bonus or incentive programs almost every company has them, but if they are not administered properly they can really rip at the fabric of a company. As subcontractors we are in the service business and that service requires great people. Poorly run bonus programs can have you paying bonuses to individuals who are not satisfied with them ...http://www.constructionmonkey.com/collaboration/post/28/this-bonus-sucks1/20/2010 4:29:59 PMCraig PierceIn my last blog, I discussed the need to track productivity to increase the performance of the company which now comes up with the natural question: What do we track? It is actually not too difficult to figure out, unless you make it too difficult. Since there are so many items in construction from 1/4 x 20 nuts to duct work, the scale of what we are tracking is immense. Keep it Simple With the ...http://www.constructionmonkey.com/collaboration/post/27/construction-production-what-to-track1/19/2010 4:05:36 PMCraig PierceProductivity is defined by economists as the amount of output per unit of labor. For example the number of light fixtures installed per labor hour worked. As a subcontractor I would modify that definition to read: the amount of output per unit cost of labor. There is a specific difference and it is dramatic. Let's say we have a veteran employee that is making $30/hr and a relatively new person to ...http://www.constructionmonkey.com/collaboration/post/26/tracking-productivity-is-the-key-to-productivity1/18/2010 3:15:37 PMCraig PierceLast week we bid a few jobs. This week we bid a few jobs. Next week we will bid a few jobs. I am sure we all know which ones we won and which ones are lost, but do we really know what happened. Are we tracking the metrics of the projects we win? And I don't mean just a won/lost column? To get really good at something, we must track metrics about how we did. Think about any NFL football team, they ...http://www.constructionmonkey.com/collaboration/post/25/contract-sales-how-to-understand-your-performance1/14/2010 12:21:02 PMCraig PierceAt the expense of offending Project Managers as well as the Monkey: A woman was looking at the animals on display in a pet store. A few minutes later, a man walked in and said to the shopkeeper 'I'll take a Construction Monkey, please.’ The shopkeeper nodded and took a monkey out of a cage. He put a collar and leash on the animal and handed it the man, saying, 'That will be $5,000.' The man paid ...http://www.constructionmonkey.com/collaboration/post/24/so-what-does-the-project-manager-do-anyway1/13/2010 4:00:10 PMCraig PierceAs subcontractors we buy the vast majority of our material through Distributors. The system was established well before my time and benefited almost everyone along the supply chain. Manufacturers had someone that could stock their materials locally and provide credit and payment for delivery (thus insulating manufacturers from Owner's, General's and Subcontractor's inability to pay). The subcontractor ...http://www.constructionmonkey.com/collaboration/post/23/will-distributors-have-a-place-in-tomorrows-world1/12/2010 10:35:06 AMCraig PierceSo 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 ...http://www.constructionmonkey.com/collaboration/post/22/keys-to-being-a-great-estimator1/11/2010 3:47:24 PMCraig PierceEven though the health debate is not yet over and the full scope of health care reform is not known (or even if there will be reform), I think it is important to look at how it can impact the subcontracting industry. Required Health Care for All One of the most important parts of the legislation is that everyone will be covered in someway. I doubt that this provision can be dropped from the bill ...http://www.constructionmonkey.com/collaboration/post/21/is-obamacare-good-for-subcontractors1/8/2010 12:53:19 PMCraig PierceIn my last installment I talked about performance in relation to holding people accountable for what they accomplish and not what they do. Let's look at the bigger picture of who are boss really is, the client. For all of us in construction, General Contractors, Subcontractors, Engineers, etc. and for all of the roles, Project Manager, Estimator, Preconstruction Team Leader, Superintendent, Journeyman, ...http://www.constructionmonkey.com/collaboration/post/20/construction-customer-service1/7/2010 4:13:57 PMCraig PierceNo matter where you sit in your organization I would like for you to take a different look at your job duties. Over the years the titles for different positions have become pretty standardized, Project Manager, Superintendent, Estimator, Salesman, Manager, etc. The actual duties of these positions vary drastically from company to company and as you are aware may vary from employee to employee. We ...http://www.constructionmonkey.com/collaboration/post/18/new-year-lets-accomplish-something1/6/2010 3:03:50 PMCraig PierceSo why would anyone BIM, or Building Information Modeling? Unless you are doing a power plant or some very specialized industrial job, our guys in the field can work things out, right? Not exactly, first let me start with some definitions so we can all be speaking the same language. Building Information Modeling (BIM) - The science/art of putting the building elements that will be constructed on ...http://www.constructionmonkey.com/collaboration/post/17/why-bim1/5/2010 3:28:49 PMCraig PierceWell 2010 is finally here. It couldn't come quick enough with the difficulty and challenges we all had to deal with in 2009, it feels good to have a "fresh" start on a new year. I am aware that just because the calendar changed from 2009 to 2010 it doesn't mean that the world is a different place, it does however feel good to be starting new. So what can we expect in 2010? Here are a few of my ...http://www.constructionmonkey.com/collaboration/post/16/where-is-2010-going1/4/2010 3:51:16 PMCraig PierceAs one of the most dangerous industries on the planet, construction focuses significantly on safety. Our industry is focused on the health and safety of our tradesmen and for good reason. Good talent is very difficult to find and none of us find any project so important that we need to hurt anyone. Back in the early days of high rises, it was considered acceptable to kill a person per floor, boy have ...http://www.constructionmonkey.com/collaboration/post/15/need-a-safety-program-try-a-culture-first12/30/2009 4:58:24 PMCraig PierceSo 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 ...http://www.constructionmonkey.com/collaboration/post/14/subcontractor-projecting-2010-conclusion12/29/2009 9:50:36 PMCraig PierceWell, we are almost done. We have now compiled all of our revenue and gross margin amounts for our 2010 year. You should have a spreadsheet that has totals that mirrors the following: Revenue Jan Feb etc... Flow $3,000 $3,000 $3,100 Backlog $2,000 $2,500 $4,000 Pipeline $600 $2,900 $3,400 Total $5,600 $8,400 $10,500 Gross Margin Jan Feb etc... Flow $300 $300 $310 Backlog $200 $250 ...http://www.constructionmonkey.com/collaboration/post/13/subcontractor-projecting-2010-part-412/27/2009 3:10:00 PMCraig PierceIn Part 1 and Part 2, we looked at projecting the flow work and the backlog, now to get a total picture of 2010, we need to look at work we don't have yet, our pipeline. The pipeline for any company is critical and should be viewed in construction as far out as possible. A lot of times, we as subcontactors are only looking at the projects we are bidding immediately and not at all of the known work ...http://www.constructionmonkey.com/collaboration/post/12/subcontractor-projecting-2010-part-312/19/2009 4:29:08 PMCraig PierceIn Part 1, we talked about how to start coming up with a realistic look at 2010 by looking at your continual or flow work. In this part, let's take a look at the next part of the business that you have built, the backlog. Over the course of the year, you have been bidding and hopefully winning work, not all of which will be completed by the end of the year and that amount that you take over into next ...http://www.constructionmonkey.com/collaboration/post/11/subcontractor-projecting-2010-part-212/11/2009 1:53:23 PMCraig PierceAs 2009 closes, most of us are in the process of deciding what we think about 2010. If you have done your job right you already have this answer and if you have been lucky 2010 looks like a great year. For the rest of us, we need to start crunching the numbers so we can let our partners, bankers, and other stake holders know what we think about the coming 12 months. So how do you go about figuring ...http://www.constructionmonkey.com/collaboration/post/10/subcontractor-projecting-2010-part-112/9/2009 7:05:54 AMCraig PierceIn the previous part to this series, I made the claim that customers look towards the subcontractors to find the best "expert" in the field (or group of them) and then select from that group. I also stated that the group of "experts" are not truly "experts". Let me clarify that statement, amongst those of us that know something about the Specialty Subcontracting trade (be it mechanical, electrical, ...http://www.constructionmonkey.com/collaboration/post/9/we-are-selling-trust-thats-it12/3/2009 4:55:23 PMCraig PierceBuilding Information Modeling (or BIM) is all the rage in today's commercial and industrial construction markets. I am unaware of many large General Contractors that haven't invested a lot of money into developing a BIM department or sometimes called Virtual Construction. Even though they have invested money in technology and people, they rely heavily on us Specialty Subcontractors to provide the ...http://www.constructionmonkey.com/collaboration/post/8/so-what-is-bim11/30/2009 11:29:58 PMCraig PierceIf you read the first part of this series, you have looked at the photo of two boats and hopefully gained a different perspective about the photo that has been circulating around the internet. Let's take a deeper look into this photo from the Owner's point of view or that the change order boat was purchased from profits off of change orders and the base contract profits could only afford to purchase ...http://www.constructionmonkey.com/collaboration/post/7/boating-from-an-owners-perspective11/30/2009 12:36:07 AMCraig PierceAs 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 ...http://www.constructionmonkey.com/collaboration/post/6/what-are-we-really-selling11/24/2009 4:33:50 PMCraig PierceBy 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 ...http://www.constructionmonkey.com/collaboration/post/5/a-tale-of-two-boats11/20/2009 8:08:28 PM