| There are three separate entities that a construction | | | | have come to the conclusion that a mix of both |
| company has to satisfy in order to remain in business | | | | gives the best result. In any hiring agreement, make |
| for an extended period of time. Licensing by the | | | | sure there is a trial period stated and a time certain |
| state, county and city can be the first hurdle the | | | | evaluation date. This lets both parties know that |
| construction company must conquer. There are | | | | there is a probation period that must be completed. |
| licensing test that must be taken and passed in order | | | | Bidding jobs, carefully to win |
| to get the license to operate. When this is acquired, | | | | A job is up for bid that sounds like it is right up your |
| the insurance that most clients will demand you have | | | | alley. Make sure all the job details are clear and any |
| can be obtained to cover the job liability. Having the | | | | questions you have are answered before committing |
| license will also allow bidding on jobs and doing | | | | your company. Go over the bid with a find tooth |
| subcontracting work. | | | | comb to find any math errors or mistakes in entry in |
| Subcontracting work is the second entity that needs | | | | the spreadsheet. Let the bid sit for a few hours or |
| to be satisfied. A general contractor on a project will | | | | days if you can and then look at it again with fresh |
| contract work to qualified businesses based on | | | | eyes. If there are obvious contingencies, make sure |
| licensing, reputation and price. The better the general | | | | they are noted as part of the bid. Do not assume |
| contractor, the better the jobs that can be found | | | | that something is understood as common practice. |
| this way. Solid general contractors are better to | | | | This can get a construction company in financial |
| work for as their checks should be delivered on time | | | | difficulty very quickly. If there are time constraints, |
| and will clear the bank. If you are new to the | | | | make sure that the contract states how the |
| contracting business, make sure you ask around | | | | scheduling will be handled and how it will be agreed |
| about any general contractor you are thinking of | | | | upon. Scheduling problems can escalate in a |
| working for or with. Some big companies have lousy | | | | construction job and throw all kinds of plans and |
| pay practices and can put a small contractor in a | | | | money up in the air. If there is a dispute, the way it |
| world of hurt very quickly. | | | | will be resolved should be included in the bid. |
| The third entity to satisfy is the final customer. Some | | | | Cover the possibility of rising material costs in the bid. |
| contractors will only work for the final customer as | | | | Commodity prices can soar over night and could have |
| these are the payers for the job, and the terms can | | | | a very serious effect on your cost for the job. |
| be ironed out, completed and the check will be paid. | | | | Construction firms have been damaged when copper |
| There is no middleman in the way, like there can be | | | | prices or fuel prices suddenly go crazy. Office staff |
| with a general contractor. Employees you can count | | | | and the telephone |
| on | | | | Make sure your phone calls are answered in a friendly |
| Solid construction companies with excellent | | | | and professional way. When a possible customer calls |
| reputations have people working for them that are | | | | in to your business, how they are treated on the |
| very good at what they do, are great with the | | | | phone will make an impression. Poor phone technique |
| customer and finish the job as agreed or earlier. If | | | | can leave a bad impression. Let the staff and those |
| they are well treated by the owner of the business, | | | | who answer the phone know explicitly how you |
| they will always go the extra mile for the boss. | | | | want the phone answered and then test it yourself |
| Respect and trust are a two way street. Good | | | | to see if it is being put into effect. If a specific staff |
| employees demand it and good employers will make | | | | person is needed to answer a question, try to do it |
| sure it is part of the operating plan of the business. If | | | | then or let the person calling know how soon an |
| you lose your quality people, you will suffer on the | | | | answer will be available. People are willing to wait, |
| job and could end up out of business. Some owners | | | | usually, if they know that the answer will be coming |
| just cannot seem to get this idea through their thick | | | | in a reasonable time frame. |
| head. But the proof is just watch the construction | | | | Quality staff work is another sign of a well-run |
| companies with good reputations and see how their | | | | business. Details are the nuts and bolts. These should |
| people act on the job. They are pros and do the | | | | be handled efficiently and with accuracy. Once a |
| work with skill and expertise. There is an obvious | | | | good staff is put in place, the business should seem |
| respect between the owner and his people. If you | | | | to run on its own. Compliments will go a long way to |
| ask around it becomes quite apparent which | | | | keeping it that way. Conclusions |
| companies’ people want to work for. Pay is only | | | | Constructions companies can be moneymakers and |
| part of the answer. On site treatment of the | | | | financial disasters. Running a construction company |
| employee is also an important element of the job. | | | | takes planning and careful attention to detail by all |
| Mutual respect and trust are a big part of why some | | | | involved in bidding a job. Bad bids cost money that |
| companies always have a list of people who want to | | | | could kill the profit for a year or more. The money in |
| work for them. | | | | any bid is in the details. The secret is to understand |
| If there is a problem, it should be settled in private. | | | | the terms of the bid and make sure that is exactly |
| Public dressing down is very poor management by | | | | what you are quoting on. Special considerations |
| the owner. No one wants to be embarrassed on the | | | | should be noted and specifically agreed to before |
| job. On the other hand public recognition of a job well | | | | accepting a contract. |
| done will never be frown on if the owner is sincere in | | | | If there are time constraints or time penalties for the |
| the praise. Skilled, smart employees can make a | | | | job, make sure you know the details of who sets |
| company stand out and poor employees can quickly | | | | the constraints and what will happen if there are |
| ruin a company with the people who hire. This one | | | | situations that cannot be foreseen. Scheduling delays |
| element of a construction company must be | | | | are the biggest danger here and who sets the |
| constantly handled in a professional manner and | | | | schedule must be spelled out. Your contract should |
| certainly not like a plantation owner. | | | | set the time needed to do your job if the job site is |
| Hiring experience is never cheap and training new | | | | ready. |
| employees has its own cost. Successful companies | | | | |