Tag: Construction tips

[Resource List] How to Re-open Your Job Site During COVID-19

May 11, 2020

We sense that ‘normal’ isn’t coming back, that we are being born into a new normal: a new kind of society, a new relationship to the earth, a new experience of being human.

Charles Eisenstein

Many states throughout the U.S. are making plans to re-open by the end of May, following the unprecedented shutdown of businesses due to the COVID-19 virus. Hopefully, this means that leadership in government, industry, business, and education have developed answers to questions surrounding working safely during COVID-19’s gradual retreat with the intent to not activate a second wave of the pandemic. 

For those of us in the Architecture Engineering and Construction (AEC) industry, and particularly those who are considered “essential” and must report to the job site, management and workers must be prepared to implement a “new normal” work culture to protect ourselves and loved ones. Fortunately, the following resources have been developed to help those in the AEC industry prepare to re-open their offices and job sites. 

Please note that the resources discussed in this blog are not intended to be considered authoritative guidance, although all are from government or respected industry associations. 

OSHA Guidance

OSHA’s “COVID-19 Guidance for the Construction Workforce” (4/22/20) is one of many industry-specific one-page lists of “tips”. These are geared to management/owners/leadership to utilize as construction workers return to work in the industry. There are twelve (12) direct and short points. You can find OSHA’s website for coronavirus information and an 800 number to OSHA here: https://www.osha.gov/Publications/OSHA4000.pdf

NAHB Industry Guidance

This website created by the National Association of Home Builders (NAHB), has a wealth of COVID-19 resources for all members of the construction industry. One of these is the “COVID-19 Jobsite Checklist and Toolbox Talk” (updated 4/26/2020). It is a downloadable WORD document, re-titled “COVID-19 Checklist for Employers and Employees”. It is a great document for superintendents and foreman to utilize “as is” or develop their own talking points for a “toolbox talk”. It covers employer and employee responsibilities, cleaning/disinfecting, and personal protective equipment, among others. Such conversations will be needed and helpful to employees in order to shift their mindset to work safely and effectively. This document is also in Spanish. The website can be found here: https://www.nahb.org/Advocacy/Industry-Issues/Emergency-Preparedness-and-Response/Coronavirus-Preparedness/Protect-Your-Business/Construction-Jobsite-Safety-Recommendations

Building Trade Unions

Speaking on behalf of union workers across the United States, the Center for Construction Research and Training (CPWR) and North America’s Building Trades Union (NABTU) recently (4/21/2020) issued their “Draft NABTU and CPWR COVID-19 Standards for U.S. Construction Sites”. This is an excellent three-page document that addresses what “employers” should do to implement a COVID-19 exposure control plan. Among the topics addressed are social distancing, decontamination, personal hygiene, respiratory protection (including images) and special guidance for older workers and people with underlying health conditions. This document is downloadable and contains a number of website links to agencies such as OSHA, NIOSH, and the CDC: https://www.cpwr.com/sites/default/files/NABTU_CPWR_Standards_COVID-19.pdf

Construction Industry Safety Coalition (CISC) Recommendations for COVID-19 Exposure Prevention, Preparedness, and Response Plan for Construction

The CISC is made up of 25 trade associations, representing all sectors of the construction industry, including commercial building, heavy industrial production, home building, road repair, specialty trade contractors, and material suppliers. Recently (4/26/20) this organization developed and shared a plan that outlines steps that every employer and employee can take to reduce the risk of exposure to COVID-19. The plan is a template where individual contractors may tailor it to their own work and job sites. CISC also suggests that contractors should check with state and local ordinances regarding essential work in the areas they are operating. The document is about twenty (20) pages in length and can be found at: https://www.nahb.org/Advocacy/Industry-Issues/Emergency-Preparedness-and-Response/Coronavirus-Preparedness/Protect-Your-Business/Construction-Jobsite-Safety-Recommendation

Preparing your business for the full and safe return of all persons working on and around your projects will be extremely critical in the coming months. Owners, managers, and leaders in the construction industry will need to execute plans and communicate necessary changes to their work environment as the economy is gradually re-opened. The tips, recommendations, and guidance provided within these resources could be considered specialized tools for the “new normal” that follows COVID-19. But this is also our chance to transform the construction environment into a more thoughtful, helpful, healthy place to work.

What would you like to see as the “new normal” for the AEC industry? We would love to hear your thoughts.

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Wondering What People Didn’t Tell You About Starting a Construction Business? Read This!

November 22, 2019

All truths are easy to understand once they are discovered; the point is to discover them.

Galileo Galilei (1564 – 1642)

We’ve learned that becoming an owner and leader of a prime or subcontractor construction business can come from many experiences. For example, by being:

  • a family member in a construction business where day-to-day experiences provide insight and exposure
  • a tradesman, starting from apprentice to journeyman to foreman to superintendent
  • an architect, engineer or project manager who has designed or managed construction projects and is drawn to the “hands-on” aspect of construction 

No matter the exposure or stimulation, once the decision is made to take the risk of going out there and making a “go of it”, the ball game changes and more knowledge is required than previous experience may have afforded.

We get it. It’s exciting, it’s rewarding, it’s your chance to bring that “Bob the Builder” fantasy to real life. But doing the job for someone else is different from running the business for yourself.

So how do you skill-up if you haven’t had years of mentorship from construction owners with years of experience? First, we highly recommend you go out and round up that mentor but, in the meantime, here are a few pieces of salient advice budding construction entrepreneurs should consider:

There’s more to do than hang your shingle.

There are many requirements leading up to submitting a bid on a project. Certain trade-specific licensing and certifications may be required to perform construction work. Business licenses and registration are required by most states. Registration of state tax identification numbers for income tax withholding, sales and use tax, and unemployment insurance tax are also required. But these are just the tip of the iceberg.

So, before performing any construction work, make sure to do the following:

  • Check with your state, local city, county or jurisdictions.
  • Get to know what the requirements of agencies, owners, or developers are to submit a bid. 
  • Keep in mind that it takes time to get the required documentation and there are costs involved.

Construction companies are capital intensive.

Becoming a construction business entrepreneur is more than just having a great crew and a few months of work in your backlog. You need a strong, comprehensive financial plan. A good plan starts by knowing and budgeting for all your expected costs. This includes direct and indirect (overhead) costs. The budgeting process should project your annual spending to determine how much revenue you will need to be paid to cover it. If there’s something left at the end of the year, it’s profit!

  • Establish the break-even point in your bid to assess whether your budgeted cost will be more than covered by your price to show a profit.
  • Be prepared to pay for project costs upfront. Payment is typically received for work that has been completed.
  • Seek prompt payment by invoicing immediately after service is rendered. Invoice accuracy will also help avoid payment delays.
  • Work with a seasoned professional, like someone from SCORE or a local small business development center to obtain and use projections of key accounting measures utilized in construction. 

You must continue to feed the beast.

Once you have started performing construction and have amassed staff, equipment, and a sundry of overhead costs, you will need to keep the projects flowing. Keeping the pipeline full of work is not easy. The purposeful efforts of business development resources will need to be tapped to provide ample future bidding opportunities. Winning 1 bid in 8 or 10 submittals is not uncommon and is often considered the norm. Do not underestimate the power of creating a business development strategy.

  • Develop the sources to get on bidders’ lists by signing up for bid notifications through state, federal, and local agencies; Procurement Technical Procurement Centers (PTAC); or from the input of past customers, colleagues, and other professionals.
  • Routinely scan business or agency bid opportunity portals.
  • Ask for reviews and referrals.

You need to show up in more places than just the job site to generate new work.

Even though at times the construction market may appear to be booming, the work volume ebbs and flows. The competition for projects, particularly of the small variety, can be fierce. As the company owner, you realize how important it is to be present on your current job sites but now; guess what? You need to be seen in other places as well to keep your business on the radar of those awarding work.

Here are some important places to be seen:

  • Attend project pre-bid meetings. 
  • Get to know purchasing managers by setting up an introduction meeting to share your business interests and capabilities.
  • Be visible at public agency board meetings.
  • Be a participant in agency-sponsored M/WBE programs.
  • Show up at trade shows.

These are just a few tips that we hope will help enthusiastic construction entrepreneurs as they begin their journey, but we know there are more questions out there.

Share your construction business start-up questions in the comments below and sign up for the CAI Newsletter where we share more articles and tips to help M/WBEs on their journey to success.