In a best-case scenario, a construction claim will make the contractor financially whole again on the matter. In a worst-case scenario, the contractor goes out of business. Most claims conclude somewhere in between with all parties unhappy. There are some commonalities among claims. They all put the claimant in a negative cash position. They all redirect […]
Continue ReadingTop 5 Excel Tips for Contractors
Executive Summary: Microsoft Excel is probably the most common tool in the construction industry. Most people use it daily. Here are five simple, everyday things to make you better with Microsoft Excel. Right to the tips! To some this list will be elementary, to some it will be lifechanging! Feel free to go to this quick video of our tips […]
Continue ReadingCost Codes: What, Why & How
Executive Summary: Many construction companies run their operations with too little specificity; costs ought to be reviewed on an activity-by-activity basis. Learn what, why and how to set up a good cost code structure. The bid and execution. Let’s use an example, say, Concrete Curb & Gutter. Suppose this was a proposal item for our client, and she wanted a […]
Continue ReadingWhy be an Engineer: It’s the Mornings
Executive Summary: A recent article by the American Bar Association caught my eye. It was entitled “When is it okay for a lawyer to lie?” I could probably end the article right here. I’ll keep going. [QR] Contemplating a law career. Yup, I get it, you know someone who watched television like the rest of us and you became […]
Continue ReadingThe Internal Pre-Con: Top 10
Executive Summary: Contractors usually are mandated to attend a pre-construction meeting with the Owner. There’s no reason not to also have an internal pre-construction meeting. The agenda. Here’s a Top 10 list for your Internal Pre-Construction Meeting Agenda: My story. We always talked a good game, but never did these meetings on a regular basis. It was a mistake. Primarily because it didn’t allow […]
Continue ReadingThe Construction Daily Report: Why & What
Executive Summary: The importance of the daily report cannot be overstated. Knowing whyto write them and whatto put in the report is critical for defense of yourself, and offense against another party. Why should I do daily reports? I think most people know whata daily report is, but whydo we write them. We write a daily report for two parties – the […]
Continue ReadingSpearin and Modified Total Cost Method Adopted in Missouri
One of contractors’ most reliable defenses, the Spearin Doctrine, has been upheld in a Missouri Court. Certainly, for Missourians, this is a good thing, and to the extent, others may be able to reference this case or use a similar approach in claims, is a win for the construction industry.
Continue ReadingTraining: Now I See the Value
The benefits of training can be great for numerous reasons. You’re making capital investments, you should also treat your employees as an asset worthy of investment too.
Continue ReadingChoosing a Construction Consultant
Once the decision is made to engage a consultant, choosing the firm to assist you can be one of the biggest challenges. Consider asking key questions to flush out the quality and value of the service.
Continue ReadingConstruction Claims Hierarchy
Construction claims are an unfortunate part of the construction process in today’s world. When you have a claim, know the order of hierarchy in your presentation of the data for maximum remuneration from the client.
Continue ReadingProfit Fade – Avoiding It
Executive Summary: Reduce profit fade at the end of your projects by adjusting building habits and getting the right people in place to finish your jobs strong. Several suggestions from years of experience are provided here. What is profit fade? So often a good job goes bad, but just at the end. Your company executive asks you […]
Continue ReadingCustomized Programming: Easy Access and Low Cost
Executive Summary: There are no perfect software solutions out there for many industries. Many companies must settle for “close enough” to achieve their control goals. If you have relatively simple needs, considering a custom program may vastly improve your efficiency for less cost than you think. What do you mean, custom programming? Is there a process in your company […]
Continue ReadingSome Basic Analysis Techniques in Claim Preparation
A claim is made because a contractor has lost money and/or time on a project. The method chosen by the contractor to substantiate these costs can vary. Some popular methods of calculating cost are presented.
Continue ReadingEquipment – Buy, Rent, RTO, RPO, Lease – Which One???
Executive Summary: Construction equipment is a necessary tool to perform many types of construction work. How to acquire the equipment has a significant effect on the financial aspect of a company. There are many options which should be considered when temporarily or permanently acquiring a piece of gear. What are my options? Now that you’ve […]
Continue ReadingInventory Tracking: A Money Saver
Construction companies have inventories that should be managed to improve efficiency and, in turn, improve the bottom line. Consider a mobile solution or at least one that gets away from the clipboard.
Continue ReadingTop 10: Basic Business Etiquette
Executive Summary: Landing the work has enough challenges in meeting the scope, schedule, and cost requirements of the client. You’re defeating yourself if you can’t be polite and practice simple business etiquette. Low hanging fruit. If your client has been kind enough to consider doing business with you, don’t give him or her a reason […]
Continue ReadingThe Unilateral Change Order
Executive Summary: The purpose of a change order is to add work to an existing contract. Ideally, this work is added with mutually agreeable terms in scope, time, and cost. These terms often cannot be agreed upon and contractors feel coerced into signing the document. Consider not signing the change order. Origination of the change order: Whether you are […]
Continue ReadingProject Management Triple Constraint
Executive Summary: There’s an adage, fast/cheap/good, pick any two. This relates to the Project Management Triple Constraint. It also has other names like Iron Triangle and Project Triangle. The Triple Constraint. A common teaching in the project management world is the Triple Constraint. This is represented by the simple triangle shown. All projects are constrained […]
Continue ReadingCost versus Price
Download PDF Executive Summary: Cost and price are two different measures of money in a construction bid. Knowing the difference is fundamental and can improve profit. What is cost? Cost is the expense associated with an activity or item. It is just cost. It has nothing to do with price. In construction terms, the cost […]
Continue ReadingTwo for Today: Taxes and Fuel
Download PDF Executive Summary: Do two things today to improve your company: (1) check to make sure you are current on your 940 and 941 taxes and (2) make sure you’re reviewing your fuel bill. Confirm you’re current on your 940 and 941 payments. The federal Form 940 is used to pay Federal Unemployment Tax […]
Continue ReadingA Quickie on DEF
Executive Summary: The U.S. Environmental Protection Agency implemented a rule on May 11, 2004 [QR1] which rocked the construction industry. It has made DEF (Diesel Exhaust Fluid) a household name. What is DEF? What is DEF? DEF is an acronym which stands for Diesel Exhaust Fluid. It’s a liquid. It’s a mixture of 32.5% urea […]
Continue ReadingThe Connected Jobsite
By now you’ve heard buzzwords like “connected construction”, “internet of things (IoT)”, or even “VR / AR”. The idea and use of the connected construction site is not new, but as each day passes, it seems that the amount of jargon associated with building technology doubles daily. A connected jobsite can entail many things from […]
Continue ReadingPlans Constructability Review: Why, When, and What?
Executive Summary: A constructability review of a plan set can greatly benefit the project. On the surface, it looks like it benefits primarily the Owner, but the benefits to the design team and contractor can also be significant. All project parties should encourage this service on their projects. I’m only covering half here. A full […]
Continue ReadingCredit Unions versus Banks
Executive Summary: A credit union is a viable option for many small businesses. Consider the advantages of a credit union over a traditional bank. What is a credit union? It’s “big bank lite”. It’s a bank with checking accounts and savings accounts, with mobile banking services, with internet access, tellers, the whole deal. All […]
Continue ReadingConversion of Inches to Feet (in decimals)
Length in the United States is still primarily measured using inches and feet – inches add up to feet add up to yards add up to miles. These are called Imperial units. The vastly more common way on the planet of measuring distance is by using the metric system – millimeters add up to centimeters add up to meters add up to kilometers.
Continue ReadingAn RFI can Satisfy Notice Requirement, said the Feds
Download PDF Executive Summary: Possibly the leading cause of contractor claim denials – lack of proper notice – just got a little bit easier for contractors thanks to the U.S. Armed Services Board of Contract Appeals’ conclusion that a request for information (RFI) can satisfy a notice requirement under F.A.R. (Federal Acquisition Regulation). Here we go […]
Continue ReadingEscrowing Bid Documents: What, Where, How, Why, & When?
Escrowing your bid documents and
estimate calculations allows the contractor and owner to
review all documents relied upon and created by the
contractor as of bid day. If this method of price evaluation
is accepted by the owner, it can be an invaluable asset
during a project dispute.
Standardized Contracts and ConsensusDocs: a Win-Win
Download PDF Executive Summary: Standardized contracts provide tremendous benefit to the construction industry – they benefit the owner and the contractor. ConsensusDocs is the leading standardized contracts provider utilizing plain speak and fair risk allocation. Consider using them on your next project. [QR1] What’s out there now. We’d all agree that it’s a good idea to […]
Continue ReadingA Cheap Lawyer
Download PDF Executive Summary: Construction projects are becoming more and more litigious. The cost of outside counsel is practically its own line item in a contractor’s estimate these days. Hiring a junior attorney today for pennies may later save you dollars. The problem. I was listening in on a webinar this morning with the industry’s […]
Continue ReadingLetters – Keep them Simple & Discrete
Download PDF Executive Summary: Written communication is a skill every good project manager must have. Knowing how to write a letter is critical during the project, and afterward in the case of a claim. Basic pointers for writing good construction letters are presented here. You can listen to my presentation here: [QR]. Letter beats […]
Continue ReadingTemperature Effects on Productivity
Download PDF Executive Summary: Effects of weather on labor productivity can be difficult to quantify. Consider efficiency factors generated by the National Electrical Contractor’s Association and presented by Adrian & Adrian in Total Productivity and Quality Management for Construction. This is also discussed in many other publications. Why and when to use it? If you […]
Continue ReadingThe Runjob Review
The weekly Runjob Review highlights news, topics, and trends in the construction industr
Continue ReadingUnbalancing a Bid and Cash Flow
Download PDF Executive Summary: Cash flow is vital to a contractor’s survival. Taking advantage of setting unit prices in a bid, and also knowing cash strangle points is imperative for business owners and project managers. Here’s a video. The first ten minutes of this video (presented by this article’s author) is a great presentation on bid […]
Continue ReadingUsers of Your Financials: What They’re Looking At
Download PPT Download PDF Executive Summary: Some parties may require their own review of your financial reports before doing business with you. The two documents of interest to these parties are the income statement and the balance sheet. The major items they’re looking at are briefly discussed here and a presentation made by a construction […]
Continue ReadingBuild your Business into a Machine
Download PDF Executive Summary: Without solid processes and controls in place, too many decisions can be left in the hands of employees who approach things in very different ways. The end result is that executive management has no consistency in the data presented to them. Lockdown processes to establish consistency – turn certain aspects of your […]
Continue ReadingDivisional Separation: Pure Crap
Read PDF Executive Summary:Companies lose money and affect reputation by divisive behavior between divisions. Work to make this better by improving morale, efficiency, and the bottom line. How it goes. You’re a member of a successful construction company. You work in the heavy/civil division building treatment plants. The boys and girls down the hall run […]
Continue ReadingWhy Hire a Management Consultant?
Executive Summary: Consultants sometimes carry a bad rap for what they do. They’re expensive and actual or perceived value is not recognized in their effort. Consider what they do bring to the table that your firm cannot. What does a management consultant do? At the heart of their duties, management consultants solve business and […]
Continue ReadingI See Claims…
Download PDF Executive Summary: Construction is a litigious business. Often times the signs were right in front of you from day one. Pay attention and look for the behaviors of the parties that often indicate inevitable dispute and possibly a claim at the end of the job. See 20/20 today. Too many construction professionals […]
Continue ReadingEngineering or Communication Failure?
Basic communication would have prevented mass casualties in Kansas City in 1981. Almost 40 years later, we still should be learning from the tragedy at the Hyatt Regency in Kansas City. Yes, an engineering failure, but the real failure was just in simple jobsite communication. #collapse #hyatt #communication #worksafe
Continue ReadingProposal Terms and Conditions
Watch Listen Read Download PDF Executive Summary: Submitting a clear and concise proposal is an important step in getting the project off on the right foot. An ambiguous proposal welcomes dispute. Be complete in the listing of terms and conditions in your proposals. What are terms and conditions? Terms and conditions are provided in […]
Continue ReadingThe Engineer Was Negligent
As published in Civil Engineering, February 2017 Click for PDF The Law in the June 2016 issue ( “Engineer Found Negligent for Not Verifying Product Data,” page 92) discussed a legal case in which a contractor installed an engineer-specified rain tank that later failed, causing financial damage to the project owner. The column explains that […]
Continue ReadingEngineers and Architects Gotta Step It Up
Executive Summary: Contractors for as long as I can remember have been taking on risk that is not theirs to take. Engineers and architects can do a much better job of protecting projects by improving design and management of the construction process. What is the definition and purpose of the engineer, or architect? Merriam-Webster defines […]
Continue ReadingIf I Told You, You Would Have Screwed Everything Up
I’ve written a couple posts about my superintendent Mike. This one involves another one of my superintendents in the past named Jon. Jon and I were running a good sized job at a large, public transportation facility. Of course, the location of this facility shall remain nameless to protect the innocent. This was a fast-tracked […]
Continue ReadingThe Difference Between a Good and Great Estimator
Executive Summary: Estimators are difficult to find, but one way to determine whether you have a good or great estimator on your staff, or in the interviewee chair, is whether or not they talk productivity rates or unit prices. What is construction estimating? A construction estimator has many skills – takeoff, scope analysis, means and […]
Continue ReadingIt’s Concrete, not Cement.
Executive Summary: Defining concrete and cement. The common misconception. Once a month or so it seems I’m watching the news or listening to the radio and I hear about the guy who fell on the “cement sidewalk” or crashed into the “cement wall” with his truck. It’s concrete people, not cement! Definitions. Hawaiian Cement, a […]
Continue ReadingHere’s where you should be using QR Codes today in your Construction Company
Executive Summary: If you have a discrete thing that you want to know about or report about now, use QR codes. Don’t be wary of the technology or think it’s a hassle to use. It’s simple and powerful technology. You can use it today. You need it. One email or phone call to us and […]
Continue ReadingConstruction Contract Review Basics
Executive Summary: Each day we hand contracts down to our subs or we are signing contracts down from Owners or General Contractors. Know some of the basics of what to look for here. What is and when will I ever use a Contract? A contract is a laying out of the “Rules of the Game”. […]
Continue ReadingTop 3 Reasons to Leave Spreadsheets
Executive Summary: The electronic spreadsheet is arguably the most common tool used in the industry for everything from construction documentation to estimating to human resources. Here are the top three reasons not to use them in some instances. What you’re using them for currently. You probably left a spreadsheet to read this article – I […]
Continue ReadingDead is the Handshake
Executive Summary: The “Steel Team” composed of fabricator and erector joined together to sue the owner and general contractor for failure to pay on changes. The “right” parties appeared to win, but they paid dearly. The Project and Players. The project was the Ascent at Roebling’s Bridge – a 21-floor, luxury condominium in Covington, Kentucky. […]
Continue ReadingGeneral Contractors Labor Association Holiday Schedule
2017 1 Jan Sun New Year’s Day 2 Jan Mon New Year’s Day (Observed) 16 Jan Mon Martin Luther King Jr. Birthday 20 Feb Mon President’s Day 26 Mar Sun Prince Jonah Kuhio Kalanianaole Day 27 Mar Mon Prince Jonah Kuhio Kalanianaole Day (Observed) 14 Apr Fri Good Friday 29 May Mon Memorial Day 11 Jun Sun […]
Continue ReadingGiving Workers a Voice Makes Job Sites Safer
A highly effective means of improving the bottom line with minimal cost is the implementation of a site safety committee (SSC) on your projects.
Continue ReadingWhy is the Accounting Department Telling Me How to Estimate?
Executive Summary: Estimators know the construction work while the accountants know the financials. These two parties must work in harmony to benefit the company and their own livelihoods. This article recognizes the needs of both parties. The dilemma and end goal. Most firms beyond the “Mom and Pop” stage, have separate groups of personnel who […]
Continue ReadingAnticipate Non-Obvious Movement to Prevent Serious Injury
Executive Summary: There exist thousands of hazards on a construction site. Some are obvious, some require more intimate knowledge of the industry and its equipment. Below are some of the non-obvious, learned hazards. A bed and other leaning things. Not your mattress, but a truck bed in its upright and dumping position. The safe place […]
Continue ReadingTop 5 Uh-Oh Signs of a Client
Executive Summary: If you do not have a relationship with a client, or you are moving to a different management team within a familiar client, there can be some telltale warning signs. Listen to your client for some of the items listed below and beware. #5 The taped meeting. I haven’t been to many of […]
Continue ReadingTop 5 Countdown: Things to Look for in Vendor Quotes
Each quote on bid day, whether from a subcontractor or a supplier, needs to be thoroughly reviewed before incorporating into the bid. Here’s a Top 5 countdown!
Continue ReadingIn Choosing a Software – Best Advice is to Talk to a Friend
Executive Summary: There exists construction software to do nearly all functions in your construction company. Your best source of software advice: your friends in the industry. I’m drowning in choices. There exists software to “help” your construction company in many functions: Estimating Takeoff – two and three dimensional Accounting Job Costing Timecard collection Insurance certificate […]
Continue ReadingChanges in the 2017 AIA A201/A101/A401 Documents
Executive Summary: Probably the most common construction contract documents in use in America are the AIA (American Institute of Architects) documents. The A101/A201 for Owner-General Contractor and the A401 for General Contractor-Subcontractor were both reissued in 2017. See some of the substantive changes here. What are the changes? I recently attended a webinar by two […]
Continue ReadingThe “All Zeroes One” Code Prevents Lost A/P Invoices
A key component of job cost reporting is accurate posting of accounts payable (A/P). The time between receiving the invoice in the mail and posting it to your job cost reports can be fatal to a job, or a company. The answer is to not let the invoice out of the main office until it’s been posted to the project. Use the “all zeroes one” code to capture this cost in a job immediately.
Continue ReadingAn Alternative to Eichleay: HOOP!
Executive Summary: Contractors delayed by the owner often want to be reimbursed ‘x’ dollars per ‘y’ days for the cost of home office overhead. Most contractors are used to using the Eichleay Formula to recoup this cost. There’s a new formula available from a case in Ohio: the HOOP Formula. It’s stupid simple. What is […]
Continue ReadingGetting Paid: Some Suggestions
Executive Summary: The law* provides the rules of getting paid in construction. Sometimes contractors must use the law, other times there are other easier (less expensive and quicker) ways of getting paid. *I’m not a lawyer, so please make sure to consult with your attorney on any of your legal questions resulting from this read […]
Continue ReadingBidding a Civil Construction Project: Part II
Letting, or bidding out, a civil construction project can be a challenge for an Owner. Questions inexperienced owners may have involved choosing an engineer, what sort of contract to use, how to collect bids from contractors, and finally how to manage the construction of the contract. In this two-part series, in Part I, we concentrated first on Engineer […]
Continue ReadingBidding out a Civil Construction Project: Part I
Letting, or bidding out, a civil construction project can be a challenge for an Owner. Questions inexperienced owners may have involved choosing an engineer, what sort of contract to use, how to collect bids from contractors, and finally how to manage the construction of the contract. In this two-part series, in Part I, we concentrated first on Engineer […]
Continue ReadingRFID (and NFC): What is it & how can it help you?
Executive Summary: RFID is defined and the differences between RFID and NFC are explained here. Also discussed is how they can help your company. RFID defined. RFID stands for Radio Frequency Identification. It’s a process. It is a process where items can be uniquely identified using radio waves. By taking a tag of some sort […]
Continue ReadingHawaii Case: A Subcontract is Valid and Binding Without a Signature
Executive Summary: Contractors too often allow their subcontractors to commence work without a fully executed subcontract. A contract between the two parties can be binding even without a signature. Learn from this June, 2017 case in Hawaii how a contract can be formed without a signature. No signature required. Pacific Commercial Services, Inc. (PCS) sued […]
Continue ReadingFraud: Stop Thinking it won’t Happen to You
Executive Summary: Fraud is a real risk to businesses and most do not realize they’ve become a victim until it’s too late. There are simple controls to put in place to help prevent it, or perhaps bring it to your attention. Learn preventative measures and examples of embezzlement techniques. “No, that couldn’t happen here.” “We […]
Continue ReadingOwners Need to Stop Expecting Filet Mignon on a Hamburger Budget
Executive Summary: An August 19th, 2017 cover page headline in The Economist magazine reads Construction: the least efficient industry. Their general position on our industry’s efficiency I didn’t think was far off, but the blame was misplaced. Owners need to help turn this industry. For their own sake, not just for contractors. Owners get what […]
Continue ReadingMake Claim Preparedness the Standard, not the Exception
More and more construction jobs year after year go to litigation – or at least go “legal” as I say, by requiring the services of a lawyer. Don’t make preparing for a claim a monstrous duty towards the end of the job, prepare as you go with good documentation habits.
Continue ReadingThe $5 Casio: Your Best Tool
With all of today’s fancy and complex tools available in the marketplace, nothing is more important than simple calculations (and common sense). Rely on simplicity and basic math to check your work.
Continue ReadingCut Out the Office Cancer for Better Office Health
Executive Summary: A lot of offices have that one person or that one small clique that creates a negative atmosphere in the office. You and your office will be better off with this cancer removed. Cut it out. Bad attitude. This person or persons I’m referring to may exist in your office. He’s always negative, […]
Continue ReadingInvoice Your Clients Clearly and by the Rules to get Paid Quickly
Executive Summary: Invoices get paid untimely for numerous reasons. The reason for slow payment should never be because of you – the party billing. Keep billing simple and in accordance with the payer’s guidelines to get paid quicker. What is an invoice? An invoice is a document generated by you that you provide to your […]
Continue ReadingSoftware Reduces Overhead Labor
Labor. It may be your largest, but is most certainly your most volatile, construction cost. The craft labor is the major cost, but the overhead labor can eat into budgets as well too.
Continue ReadingWhat’s a Banking Covenant?
What are banking covenants? Banking covenants are conditions put upon a borrower by the bank. Although they can be general in nature, they often are quantitative. Some typical covenants are listed here.
Continue ReadingThe Power of Habit
Executive Summary: Although policies can be created overnight, getting them to function and last in your organization takes time. Read here about the value of persistence. Change is tough. We’re in the construction business and many of you reading this are doing it as a professional in America. Change for us American constructors doesn’t come […]
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Runpatrol
Simple Patrol Reporting Runpatrol is a simple, affordable, and powerful means of protecting facility users and property owners!
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Runasset
On-Demand Asset Management Keep track of the location, condition, & history of your small tools to heavy equipment using any iOS or Android smartphone or tablet!
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Runjob
Runjob Software Simple, affordable, & powerful software for contractors.
Continue ReadingSmall Tools Tracking Software – Get It!
Executive Summary: Estimates vary on the financial loss suffered by contractors due to lost or stolen tools. Pick any number you want, it’s certainly worth a discussion at any value. The direct cost loss is most obvious, but consider also the inefficiencies suffered by crews not having the tools they need to operate efficiently. How […]
Continue ReadingIncluding the Portion of Corporate Overhead in a Bid
Executive Summary: Determining how to account for the portion of corporate overhead to be included in a bid is a calculation that every company makes a bit differently. Learn the definition of corporate overhead and how it is included in a bid. What is corporate overhead? Corporate overhead is the cost associated with “keeping the lights […]
Continue ReadingChoosing a Professional Services Provider
Executive Summary: There are many factors in determining who should provide your firm professional services. Read on to find that it’s more than just their technical ability. General: As a contractor, you need the following professional services on a regular basis: Legal Banking Accounting Insurance Engineering Some construction companies may provide these services in house, […]
Continue ReadingBalance Sheet – Knowing the Basics of Liabilities
The balance sheet says a great deal about a company. If you’re a business owner you better know how to read your own, as well as that of your clients and subcontractors. This week we discuss the Liabilities section.
Continue ReadingBalance Sheet – Knowing the Basics of Assets
Executive Summary: Knowing the basics of accounting is essential in business. Knowing the balance sheet will help you assess your own financial health as well as that of your clients or subcontractors. Here are some basics on the balance sheet and, specifically, the assets section. Just the basics. I entered as a student in the business […]
Continue ReadingEstimate Handoff – Estimators to Field Team
Executive Summary: It’s great that your estimators just landed a new project, but your competitive advantage can be lost without a synchronized handoff to the field team. Make sure to have a formal meeting between the estimating and project management teams before the project starts. Estimator knows best. There is no one in your company […]
Continue ReadingBid Unbalancing – How It’s Done To Increase Profit
Executive Summary: Contractors unbalance unit prices in their bids to take advantage of anticipated quantity overruns and underruns. An intelligent unbalancing of the unit prices can result in higher profits. Of course, that’s the contractors’ goal. Review the example provided to see how it’s done. The bid proposal. Let’s look at a sample project which […]
Continue ReadingAward Reversed Because of No Expert Testimony
Executive Summary: A Washington concrete contractor, Salinas Construction, Inc. (SCI), was awarded $404,000 of its requested $425,000 for a job at U.S. Army Joint Base Lewis-McChord only to see this decision reversed in district court. The problem was that SCI did not offer expert testimony, despite warnings that it was needed. [The information for this […]
Continue ReadingField Tip: If in a Confrontation, Don’t Hang Up on the Police
I just learned this one a couple months ago from a fantastic superintendent – Mike. One of his foremen called to him to say that he was having a confrontation with a homeowner – we cut down a tree that was shown on our plans to remove, but the homeowner thought for years that he […]
Continue ReadingConcrete Formwork – Pressure not a Function of Wall Thickness
Just a quickie on formwork pressures. One of my foremen once asked me if we needed more form ties in a 24″ thick wall versus a 12″ thick wall. That answer is “no”. Concrete, when being placed, is liquid. Just like water. And as all carpenters know, form ties are used to resist pressure pushing […]
Continue ReadingOwner Involvement, Careful What You Wish For
Executive Summary: Owner involvement in the way of project management and furnishing material is done for one primary reason: to save money for the owner. It doesn’t always happen. The owner’s decisions in these regards can cost the contractor money. Or the taxpayer. The owner as a project manager. I think that many owners feel […]
Continue ReadingThe Good and the Bad of Contracting
Executive Summary: Contracting can be the most fantastic of businesses, but also one of the toughest. Read about some of the things that make it the best and the worst of businesses. What makes contracting unique? I think that everyone thinks their business is different from everyone else’s. As I travel the country, I hear […]
Continue ReadingConsistency Results in Predictability
Executive Summary: Sustaining a business, and more so growing a business, relies heavily on consistency in business practices. Start today with improving your company’s practices so that profitability can be maintained and even improved. Better yet, let your consistent practices help you better predict the future. What is inconsistency? In construction, inconsistency can be seen […]
Continue ReadingJury Finds City Acted in Bad Faith and Contractor Still Pays His Own Attorney’s Fees
Executive Summary: Kevin McKeon, Senior Partner at Watt Tieder (McLean, Virginia), reported in their firm’s Fall 2016 newsletter on an interesting case in the Pennsylvania Supreme Court. Despite the jury finding the City of Allentown acted in bad faith, the trial judge, at her discretion as permitted by law, did not award attorney’s fees and […]
Continue ReadingKiller Clauses: No Damages for Delay
Executive Summary: A presentation on March 8, 2017at the 98th Annual AGC Convention reviewed ten (10) “killer clauses” in contracts. The “No Damages for Delay Clause” was #4; it is discussed, and proposed language to neutralize the clause is presented. What’s at stake. A presentation prepared by Brian Perlberg (Senior Counsel, Construction Law, AGC of […]
Continue ReadingA Contractor’s Cash Flow: Acknowledgement and Improvement
Executive Summary: Managing cash flow is imperative and it never hurts to see these challenges on paper. This article reminds you as the owner, the chief financial officer, or as a member of the project management team of the challenge of staying cash positive. Cash is king. If you’ve had a career with a large […]
Continue ReadingBest Way to Save Money is to Not Spend It
Executive Summary: When in a changed condition situation, the best way to minimize loss or to survive, depending on the case, is not to spend less, it’s to not spend at all. Take advantage of situations where you can spend zero. We’re going down. We’ve all been in a situation where we’re going about our […]
Continue ReadingNeed it or Want it?
Executive Summary: Develop behavioral cost controls in your employees by incubating a need versus want mentality on purchases. The ATM perception. Things look great – you own the company and your last name is on the side of excavators and dump trucks all over town. The guys in the field think the company can afford […]
Continue ReadingConstruction is a Battlefield
I was surfing the web recently and I saw an article by a construction management student. I read it, and it was good. It talked about the efficiency of communication and the ability to manage people and to track budgets etcetera, etcetera. And all that is true. But that’s usually how it goes inside the […]
Continue ReadingSoftware Designed by Construction Professionals
Runjob Software is not like other construction management software – it’s designed by industry professionals. And because of this, we will always be on the cutting edge of ideas and improvements in the software. Runjob’s founder and designer, Scott Jennings, has been designated as a Certified Construction Manager (CCM No. 8538). Scott earned this designation […]
Continue ReadingWhy track extra costs…and how?
Executive Summary: Whether you use a functional cost coding system to track the cost of your original scope or not, it is imperative that you accurately account for costs outside of your base scope. Learn why, and how, to account for these extra costs outside of your original scope. Why you need them. The biggest […]
Continue ReadingDetermining Equipment Rates in Estimating
Executive Summary: Equipment cost within an estimate is one of the most common areas to make large scale adjustments in a bid’s price. It is also a large component of a heavy/civil construction company’s bid and balance sheet. Because of these reasons, it is vital to know what your fleet is costing you. Start to […]
Continue ReadingIs that a “Pinky Ring”?
Yup. It’s a “pinky ring”. Get over it. Respect it. Keep reading. I wear one on the outside finger of my right hand. If you live in Canada, there’s a good chance you’ve seen an engineer or two wearing one also. The story is a classic. A classic tragedy, unfortunately. The ring is worn on […]
Continue ReadingNotice – When in doubt, write it out!
Executive Summary: Looking at a recent case in the state of Washington, a contractor attempted to be compensated for additional cost resulting from the project engineer’s direction to perform work different from the contractor’s desired sequence. The Court ruled against the contractor because of his failure to provide notification in accordance with the contract requirements. […]
Continue ReadingOwner Paralysis – i.e. Vapor Lock
When a tragic event happens, even the most rough and tumble executives can suffer from decisional paralysis. I don’t mean physical paralysis in your body, I mean the inability to make a decision.
Continue ReadingDo Something Awkward Every Day
As a manager, it may be often that you run in to a situation in which you must do something outside of your comfort zone. Mitigate stress and make this exercise easier for you by practicing uncomfortable and awkward situations every day.
Continue ReadingIncentive Clauses: Do they Work?
Engineers have wondered if incentive clauses are a benefit to Owners in producing a timely, or accelerated, contract completion. My experience has been that it is of great benefit to the Owner because of the aggressive nature of project completion by the Contractor.
Continue ReadingGrammar for Professionals… and the Rest of Us
A friend recently sent me a link to a grammar website, Grammarly. Honestly, I don’t know if it’s any better than the next, but I do know one thing. I know that the majority of engineers and construction professionals cannot put together a paragraph void of grammar mistakes. It’s excusable to communicate without finesse but untenable to consistently do it sloppily.
Continue ReadingSafety: Communication, Communication, Communication
To be successful in heavy/civil construction, it is imperative to have a rudimentary understanding of engineering concepts. However, more often than not the primary reason for a project failure is the human factor versus gross misunderstanding or misapplication of an engineering principle. One of my personal experiences was in a crane failure, and one of the world’s most impactful events killed 114 people.
Continue ReadingReader Response
Let us know what you think about important topics in the construction business and industry.
Check out some questions and leave your responses!
Embezzlement: Password Protection
Protecting your company passwords is like protecting any other asset. Protect them or risk losing confidential information and/or thousands of dollars.
Continue ReadingChoosing a Professional Services Provider
Executive Summary: How do you pick an attorney, a banker, a certified public accountant, an insurance agent, or an engineer?
General: As a contractor, you need the following professional services on a regular basis:
Continue ReadingCalculation of Workers’ Compensation, General Liability (GL) & Bond in your Estimates
Many estimators do not understand how workers’ compensation, general liability, and bond costs are calculated. This article discusses these calculations and how to properly include them in your bid.
Continue ReadingContractor Wins Acceleration Impact Cost and the Incentive Payment
The Pennsylvania Department of Transportation (PennDOT) awarded a time sensitive bridge rehabilitation project to a contractor and, within the contract, provided a large daily incentive payment for early completion. PennDOT delayed the project and refused to pay the acceleration claim. PennDOT lost in Pennsylvania court.
Continue ReadingNo Good Deed Goes Unpunished
Proverb #1: No good deed goes unpunished. I’ve got a couple of these proverbs up my sleeve when it comes to construction. This one I normally share with the newbies to the biz, but I find that those that have been around awhile benefit from it too. Where’s this applicable? I usually find the most popular way […]
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11/03/2016: ACECH November Breakfast
What A/E Consultants and Project Owners Should
Know about Engineers’ Cost Estimates & Contractor
Bids for Hawaii Construction Projects
Wages and Hours of Employees on Public Works
Contractors who perform public projects for the State of Hawaii or the federal government are likely well aware of the term “prevailing wage”. Prevailing wage is a minimum wage (base wage combined with fringe) that must be paid by a contractor when performing on most public projects.
Continue ReadingRunjob Events
Upcoming Events Stay tuned for more events in 2017! Past Events 11/18/16 : Lunch with Runjob Software – Hawaii’s Preferred Construction Software 11/18/16 : Free Runjob group training – Honolulu, HI 10/21/16 : Lunch with Runjob Software – Hawaii’s Preferred Construction Software 10/21/16 : Free Runjob group training – Honolulu, HI 9/23/16 : Lunch with […]
Continue ReadingImportance of Timely Notification
I have not done the official research on what are the most common causes of success or failure in a construction claim, but I would bet that the quality of notification to your client is a leading indicator of success – or failure. I can tell you this with certainty: if your notification to your […]
Continue ReadingHow to write an RFI
An RFI is a Request for Information. We write an RFI because we a. Need direction due to an omission in the documents, or b. Require clarity on a discrepancy, or c. Want to get something on the project record When writing an RFI, the author must consider what he or she is trying to […]
Continue ReadingConstruction software that is easy and affordable
By Christine Hitt, HawaiiBusiness Magazine February 2015 Scott Jennings has degrees in civil engineering and 25 years of experience in the construction industry. He owns construction businesses in Hawaii and Washington that produce roughly $20 million in sales a year. Runjob Software is his first program, designed to meet a need he said hadn’t been filled: affordable and easy-to-use […]
Continue ReadingTired of overly complex software, local contractor develops his own
Tired of overly complex software, local contractor develops his own By BENJAMIN MINNICK Seattle Daily Journal of Commerce Journal Construction Editor But what was supposed to be a one-month project for Scott Jennings ended up taking nearly three years. Sometimes a good idea is born out of necessity. Just ask Scott Jennings, who runs construction […]
Continue ReadingRunjob Software versus Procore
We have often been asked what our software does or does not do compared to the competition. Procore™ is the one we hear about the most. The simplest answer is that Procore™ is not really the competition. Runjob Software™ keeps it simple. Everyone likes plain french fries: There’s nothing flashy or fancy or complicated about […]
Continue ReadingConstruction project management software for the public works contractor
Public works contracts are all very similar. Generally speaking, they all require more formality than private contracts. By that I mean that questions must be in writing, requests for information must be in writing, notifications must be made to various people or agencies before work can commence, et cetera. And if a dispute arises, and […]
Continue ReadingWho needs a letter?
Why not just correspond via email? Who needs a letter? Project managers challenge this all the time. They take the position that if they are writing an email it is being adequately documented. Well, that’s partially true. And by using the same logic, you can also cut your lawn with a weed whacker instead of […]
Continue ReadingVersatility of Runjob’s PCO Log
We find that contractors use the PCO (Potential Change Order) log for two main reasons: To assign a “bucket” to capture costs for work out of scope that is payable by the Owner To track costs missed in their estimates that they don’t want contaminating the cost report. We also see the assignment of PCOs […]
Continue ReadingBeing a small construction business owner: tough, tough, tough
So, you want to start a construction business? Install tile, frame houses, lay pipe, move dirt, paint ceilings, wire fixtures, sweat pipe, hang drywall, tie rebar – one of these, right? Well, that’s the easy part. So is making money, right? After all, the economy’s healthy and we’re out of the Great Recession!? Right? …right? […]
Continue ReadingLose the political correctness and go find that pipe stretcher
We all hear on the news about this over political correctness and how everyone’s become so sensitive. Well, get over it. Sometimes people get a laugh at your expense. It doesn’t have to be mean – good fun is good fun. The year: 1990. The contractor: Peter Kiewit. The job: a huge highway job in […]
Continue ReadingConstruction management software for site work contractors
EXECUTIVE SUMMARY: Runjob SoftwareSM provides a simple, affordable, and powerful software for site work subcontractors and suppliers: clearing/grubbing, mass excavation, utility, flatwork, and asphalt. Document your project through submittals, RFIs, letters, PCOs (Potential Change Orders), and transmittals. Clearing the land, doing the mass excavation, laying the underground utilities, and finally putting down curbs, sidewalks, and […]
Continue ReadingEngineering tip, steel erection: if it’s taut, it’s carrying load
I’ve got the fancy degrees on the wall. Even have myself a professional engineering license or two in a couple states. I guess that makes me a smart guy. Well, I guess. Yes, it’s true that having the knowledge to work fancy mathematical equations is of value and necessity to ensure things stay standing and […]
Continue ReadingContract favors the non-drafting party
If you get into a contract dispute, and you did not draft the contract agreement, know that the rule of contra proferentem adopts the interpretation that favors the non-drafting party (Administration of Government Contracts written by John Cibinic, Jr. and Ralph C. Nash, Jr.). This basically states that if something is not clear in the […]
Continue ReadingSpearin Doctrine – a Landmark Construction Law Case
Have you ever had a project you were building according to plans and specifications and it just couldn’t be built the way they drew it up? George B. Spearin did in Brooklyn, New York. He sued the federal government in 1918 and won – click here to see it in Wikipedia. Runjob has a client who […]
Continue ReadingLetters made simple – Runjob populates the fields for you!
One of the reasons we developed Runjob Software was to keep simple things simple. What do we mean by that? Well, each time you write a letter on your project, you likely have the date, the name of the company you’re writing to, the name of the person you’re writing to, and then some sort […]
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