PEOPLE of Construction

Business Tips for First-Time Business Owners

(Third in a series of Five)

(Note: This blog is posted out of sequence in error so please click on previous posts for the entire five-part series)

This is the third in a series of blogs intended to guide new business owners in the design and construction industry to the path of success.  In the first blog, we talked about the importance of visibility, administrative/office organization, and accurate and timely accounting records.  I believe that if business owners do not set these points as high priority in their business, they will eventually fail.

In the second blog, we went off course a bit and talked about the need for business owners to have passion for their work and for the industry; have respect for the process; and conduct business in all forms, with integrity.

Now would be a good time to go back and re-read those two blogs.  They are available on my website at www.PEOPLEofConstruction.org.  They are also available upon request by emailing me at PEOPLEofConstruction@gmail.com.

In this blog, we will once again focus on three points.  I pondered just where to take this series but eventually settled in on continuing to talk about jobsite behavior and management techniques you will not find within the plans and specifications.  As previously mentioned, all points we discuss will be tied together in the end.  You cannot simply select a point or two and think you are going to climb the mountain and find success.  All points discussed in these blogs must happen if you plan to be a shining star and be an example for those behind you—and maybe closer to home, be invited back for the next project.

So, let’s explore the concepts of planning and preparation; communication; and performance.

_____________________________________________

POINT NUMBER ONE: PLANNING AND PREPARATION

We start planning and preparing from the very moment our feet hit the floor in the morning.  We may go through certain routines without thinking deeply, but somewhere in our mind we are contemplating what we are going to do today; what we are going to have for breakfast; who we are going to meet; what we want to accomplish.  By the time we make it to our office environment, be it outside the home or around the corner from the kitchen, we have several thoughts in mind.  Are they organized thoughts, written down in a notebook in numerical order or are they scattered thoughts flying every which way in your mind?

Planning and preparation are two of my “P” words that are so extremely important when involved as a participant in a commercial construction project.  As a trade contractor, at some point your time will come to be onsite, next to multiple trades, and perform your designated scope of work.  You will be expected to hit the job running, materials and required tools on hand, workmen carefully instructed, safety plan in place, properly announced to the superintendent and other trades that may be impacted by your work.

You can make your entrance, find your workspace, and figure it out from there, or you can carefully plan and prepare days ahead and be ready for action when the bell rings at starting time.  It is up to you.  The businesses that succeed are the ones that plan and prepare.  Once you are onsite with a team of workers, the clock starts ticking and the payroll starts counting. Costs are accruing rapidly, regardless of progress.

Your involvement with this project started when you received the bid invite and decided to estimate your costs and submit a proposal.  If you prepared the estimate and submitted the proposal which painstakingly detailed your scope of work and you are now the designated project manager and/or jobsite superintendent, you are a step ahead of many.  Most of the smaller firms with business owners that grew up in the field fit the description I just detailed.

So, what does good planning and preparation look like?

It starts with having a detailed knowledge and understanding of your scope of work, from start to finish.  If you were not the individual putting the job together, it is essential you sit down with the estimator and understand all his or her thoughts.  If an estimator gives you 240 working hours to start and complete the work, find out just how that number was calculated.  Work out a detailed plan of action as to how and when you will start to spend those hours, the materials you will need, the space you will need to store your materials and tools, the individual workers you plan to have on site, the hours they will work, whether overtime is involved, and what obstacles may exist that could possibly keep you from meeting your goal.

Will you need a crane or a fork-lift to offload materials?  Will you need a materials hoist or equipment of any sort to perform your scope of work?  Is there anything out of the ordinary with this project?  How about access to the site or parking for your workers?  Can materials be delivered anytime or is there a set time and place for material deliveries?  Are you prepared for clean-up and have a good feel for the dumpster location?  How about water or safety equipment for your workers?

It is likely this job will start sometime in the future so find out the expected start date and then set up follow-up calls or emails with the GC superintendent to make sure you can accommodate the schedule when the time comes to perform.  Plan to visit the site monthly to check on progress and get a feel for the jobsite conditions, the layout spaces available, the work of the trades before you, the condition of the space in which you will work, any equipment, materials, or gang boxes of other trades that may be in your way.

Successful firms do this sort of planning and preparing and more.  It takes time and it takes effort and it demands focused attention to the project long before you send your crew to the site.  This planning effort should continue and be center stage for the entirety of the project.  This is how you control your costs; this is how you reach the level of overhead and profit you set for the project.

I might add that it takes “passion and respect for the process” to make this happen as effectively as needed to stay on the road to success.  My intent with this discussion is to make you think; not provide all the answers.  You know what it takes; now make the time and effort to make it happen.

Let’s move on to Point Number Two in this series.

POINT NUMBER TWO: COMMUNICATION

Someone once said there are no stupid questions in construction.  I might want to debate that statement a bit, but I get their point.  Whatever question you ask at a jobsite walk-through there is most probably someone else in the room that is looking for the same answer.  It seems that all architectural firms prepare their work in just a slightly different way.  There are some firms that give the trades folks much more credit than warranted in the understanding of their documents and there are some that spend a lot of time and effort on excruciating details.  Regardless of which process is right, speak up if you fail to understand clearly any detail that may have an impact on your scope of work.

Communicating clearly and communicating often is probably the most important trait of a successful business in the design and construction industry.  There are a time and a place for certain communication, and it is imperative that you seek this information out and record it in your mind and in whatever workbook you are keeping on your desk—and you use it.  Do not guess; that is a costly substitution for asking a question and receiving an educated answer.

Communication starts at the beginning of a relationship; is important in the middle; and is crucial at the end.  There should be no break in actively communicating with all those involved in the process, especially in a major commercial construction project.  When you receive a bid invite and you decide that this is a project that may fit your business well, communicate with the sender and let them know your interest.  I suggest that you take it a bit further and tell the sender just why you feel this project works for you and let them know that you would love to establish or further your relationship.  Step out of your box a little and give this company a reason to remember you on bid day.  In addition, I suggest that you follow up with a question or two before bid day just to let them know you are working on it.  Active communication at this stage of the game will set you apart from the pack.

Once you have submitted your very comprehensive and detailed proposal, follow up with a phone call or an email and let them know you are available to respond to any questions or to provide additional information.  This lets the company know you are interested and ready for further action.  Email is perfectly fine for this sort of correspondence as the company seeking bids is dealing with a multitude of companies and probably have their hands full the first few days after bid day.  Leave them room to sort things out but a quick email never hurts anything.

Assuming you win the project, stay active with communicating with the company through the contract phase and the days, weeks, or months leading up to the time of on-site performance.  Introduce yourself to the superintendent and make sure he or she has accurate contact information.  This is best done by a personal visit, allowing both parties to meet each other and get a better feel for each other’s needs.  Remember, people love to work with people they know, love, and trust. 

Leave them a business card and a clear path of communication for anything and everything that may be needed prior to your entering the site and performing work.  If your time for job performance is out in the future, stay in touch with the superintendent monthly just to check in and to stay updated on the progress of the job.  This will show you are interested; you are engaged; you are ready.  It will also give the superintendent an avenue for providing you with any possible changes or job information which may be helpful to both parties.

If there are monthly job meetings, ask to be involved, especially in the weeks before you actively visit the site.  Attend all meetings during your time on the project, without fail.  If you have issues with other trades, or conflicts of any kind, or compliments of any kind, bring them up at the jobsite meetings.  Do not sit in silence.  Communicate.

During the period of time you are working, check in with the superintendent routinely, keeping him or her updated on your progress, what you have planned for the next few days or weeks, your proposed manpower, and stay in sync as to overall schedule.  Jobsite management will love this and this will put you in the category of a preferred sub.  Do not make a pest of yourself, these updates can be brief, to the point, and perhaps by a simple note or email.  This interaction will invite the superintendent to discuss any concerns with your work on a very timely basis.

When complete with your work, do not sneak off in the middle of the night.  Check in with the superintendent and make sure he knows where to find you if any issues should arise and let them know you stand behind your work and are always available to return to the site if needed.  This would also be a good time to let them know you enjoyed working on their project and would welcome the opportunity to expand your relationship with their firm.

Some of these meeting activities may be performed by your lead worker on the site but only if you have made it quite clear that this worker has the power to speak for your company.  Remember that everyone likes to talk with the owner of the business, and for good reasons.

Now, that is jobsite communication at its best. For all the introverts reading this, I know this is bit out of the norm, but effective and timely communication means the world to a superintendent or project manager trying to keep all trades working at the highest level.  The goal is to make yourself the business owner or the firm that they do not have to worry about.

My focus on this business point is with jobsite communication, but effective and timely communication is so important in all phases of managing your business.  From networking, marketing events, internal office meetings with employees, safety meetings, interactions with your suppliers, vendors, business relationships, and anyone that you may come in contact with through the routine course of managing your business activities.  Everyone likes to feel they are involved and part of the team; everyone loves the feeling of knowing what the heck is taking place at every step of every transaction.

The more you openly and timely communicate with all parties involved with your business, the greater chance you have of success in this industry.  This may not be your style, and certainly I know many business owners that may well feel otherwise, and I also have met many superintendents and project managers that think and operate differently, but I personally feel that communication simply has to be one of the keys on the keychain of success.

We all know that it is impossible to please everyone but that should not keep us from doing the right thing.  If we were to conduct a survey of 100 project managers as to what they want to see out of their subcontracting relationships, 95 of them would have timely communication on their list.

POINT NUMBER THREE: PERFORMANCE

In my Guide to Better Business books, I must have made the point a dozen times or more that “performance is the key to success.” 

You can be a resounding success at every business point I include in this blog series, but if you can’t perform when the curtain goes up, all is lost.  I can help you plan and prepare and I can give you great tips on how to communicate, and I can talk to you all day long about passion, respect, and integrity, but if your workers cannot perform your designated scope of work with efficiency and quality—meeting or exceeding the expectations of the architect, GC and owner–you are not going to succeed long-term.  It is as simple as that.

That may sound a bit scary but that is reality.  Conversely, if your company performs to perfection, every time out of the gate, possibly you can sneak by with less than perfection on every other business point I mention.  But, if you think about it, life does not really work that way.  The business owner that makes their company known in the marketplace, organizes their office well, keeps accurate and timely financial records, has passion, respect, and integrity, and plans, prepares, and communicates timely and effectively, is the company that is going to perform beyond expectations on the main stage.  Does anyone want to argue that point?

When I talk about performance, like communication, performance starts at the very beginning.  A successful business owner will perform at top peak in all phases of their business, not just when performing their scope of work on a job site.  They will excel in marketing, in planning and preparing and they will be especially good at communicating.

It is essential that a business owner keep up with the times, employ qualified workers, staff the projects appropriately to meet the project schedules, have all the up-to-date tools in top working order, provide safety gear to their employees, have site and scope specific safety plans in place, and plan, prepare, and communicate all intentions to the onsite superintendent and project manager.  That is performance.  It starts well before you hit the job and it extends well beyond just putting materials in place.

Performance is the end result of all the other business traits we will talk about in this series.  Excellent performance, meeting all specification and jobsite requirements will be considered the expected norm; and will be remembered when the time comes to solicit bids for the next project.  Poor performance, defined as poor quality work, lack of proper planning and preparation, failure to communicate, and indifference to the schedules of others, will also be remembered long after the project ends, but for different reasons.

Everything you do as a business owner, every step you take with your name on your hat, leads to performance of your scope of work in the field.  Don’t ever forget that

I am not going to tell you how to perform your scope of work, that is all on you.  I will tell you though that if you have any questions as to whether your capabilities match the project you are seeking to win, stop there and clear up those questions before you proceed.  Not every project is for everyone and do not be afraid or so arrogant to think otherwise—and/or to seek outside technical help to assist in the field.

Performance is the key to success. 

Maybe it is just one of many keys on the ring, but without exceptional performance, you will stumble through this industry until you eventually fail.  Regardless of the price you put on your proposal, failure to perform in the field is not something you can sell.

This is the third in a series of blogs on tips on how to start and manage a successful business in the design and construction industry.  In future blogs, we will take on other important ingredients to a successful business, always at three points at a time.

These blogs will be posted on my website at www.PEOPLEofConstruction.org and they are available via email by request to PEOPLEofConstruction@gmail.com