Construction: The Lost Decade
by Craig Pierce
Yesterday 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 ...
Increase Profits, Minimize Risk
by Craig Pierce
What 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. ...
Interesting News 7.27.2010
by Craig Pierce
Some of the news over the past few days that we found interesting:Report: UnitedHealth nears $1.5B acquisitionOn Tuesday, July 27, 2010 National Business News - Local Business News | bizjournals reported that:UnitedHealth Group Inc. is nearing a $1.5 billion acquisition of Executive Health Resources Inc., according to a report from Bloomberg Businessweek. (UNH)
....Read More By Visiting Nati...
What Financial Reform Means for Construction
by Craig Pierce
The 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...
The Art of Estimating
by Craig Pierce
Sun 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:
M...
Be A Master in Construction
by Craig Pierce
Where 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". ...
Where Have the Good Craftsmen Gone?
by Craig Pierce
One 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 ...
Best Way to Win that Next Project
by Craig Pierce
It 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 crit...
Is PM software a Waste of Money?
by Craig Pierce
Almost 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 ...
Will Anti-Immigration Law Affect You?
by Craig Pierce
Arizona 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 fr...
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Life of An Estimator, Tougher than You Think
by Craig Pierce
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 mo...
Will Anti-Immigration Law Affect You?
by Craig Pierce
Arizona 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 fr...
So What Does the Project Manager Do Anyway?
by Craig Pierce
At the expense of offending Project Managers as wells 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....
This Bonus Sucks!
by Craig Pierce
Bonus 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 s...
A Tale of Two Boats
by Craig Pierce
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 thi...
Keys to being a Great Estimator
by Craig Pierce
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 separates 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...
What Value Do You Add?
by Craig Pierce
In 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. W...
Construction News U Can Use 4.20.2010
by Craig Pierce
Some of the more important news for subcontractors for the week of April 20, 2010
Commodity prices are on the march again
Reed Construction Data is reporting that commodity prices across the board are being pushed higher and that those prices will be realized in the US Construction market.
Project Labor Agreements will raise federal construction costs
Reed Construction Data explains the use ...
Tracking Productivity is the Key to Productivity
by Craig Pierce
Productivity 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 r...
Best and Final Offer, Are They Ethical?
by Craig Pierce
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 li...
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