Cost-Benefit Analysis and numbers The cost-benefit analysis allows commercial construction subcontractors to compare expected potential revenues to likely potential costs. In effect, a cost-benefit analysis allows you to minimize risk and proceed only when there is more certainty than uncertainty. While the essence of decision making in the construction industry often calls for quick reasoning and decisive action, an adept cost-benefit analysis takes time to gather informatio

The whole team When you run a commercial construction subcontracting business, it is vital to have people who know what you don’t know on your team. It goes beyond the people on your payroll, to include your consultants, advisors, and other experts. These professionals step in to allow you to create a Whole Team. Some examples may include: Accounting Estimating and Takeoff Compliance and Legal Business Coach Human Resources (HR) Information Technology (IT) Virtual Assistant (

The tale of a water crossing About thirty years ago, I drove an 18-wheeled truck from Farmington, New Mexico, to Page, Arizona. It was my job to deliver a load of gasoline to one of the convenience stores owned by the company I worked for. After I made the delivery and was headed back to home base, a rainstorm marched heavily across the high desert. And, as is often the case during Arizona’s desert rainstorms, the arroyos crossing the road I was traveling began trickling with

There I was, scrolling through a personal social media account when I saw what I was certain was just one more post telling me how to live my life during the Coronavirus pandemic. Who needs another set of Coronavirus guidelines? Not me! And, probably not you. But that word, “maybe” and that question mark in that first line made me pause. I read. So should you. It is time for a bit of mirth. FOLLOW ALL OF THESE, maybe? Here are the official Coronavirus guidelines: Basically, y

Every Monday morning, The Profit Constructors’ social media posts are routinely filled with something akin to an Irish blessing. They vary slightly week to week, but typically they look like this, “May your coffee be strong, your influence be ever-growing, and your week be profitable.” It is that last portion of the “blessing” we’re discussing today. That part about being profitable – because it never varies. Those are the same words week after week. Even during the Coronavir

Proper budgets and estimates If your commercial construction contracting business is to survive, then you must be equipped to provide proper budgets and estimates. More importantly, if your construction business is to be profitable, then having budgeting and estimating skills in place is essential. Develop a total project budget Developing a project budget includes: Analyzing requirements and drawings to verify the scope Determining cost and time parameters Allocating enough

Want to know what your employees want, so they feel satisfied with their job? Ask them! It isn’t as daunting as you may think. There are reasons you should be asking the right questions of your team members, both your employees and subs. It makes them know you care. You’re better able to lead. It improves your construction business. It makes them know your care The questions you ask go beyond “How’s it going?” to showing you do have an interest in their well-being. The follow

Safety counts The most important tool in your “safety toolbox” is found in the minds of your workforce. Therefore, the first hurdle to overcome is the mindset which incorrectly identifies safety and productivity as enemies of one another. Consequently, it is your job to make certain your subs and employees understand that safety and productivity walk hand in hand. From the human point of view, no one wants to see someone be injured or killed. That simple. In addition, from th

Financial storms in varying sizes Financial storms can be minor or they can be devastating. Think of  the way dust devils and tornados create different levels of damage. However, even a dust devil can grab and keep your attention when you’re in the heart of it. Financial storms are real Joe, Tonya, and I were having a chat. Consequently, this post was born. I mentioned  I had come across another wayward piece of information. In short, the owner of an accounting service declar

Indirect Costs can cause hair loss You know what I mean; trying to figure out what amount goes into which column can be a hair pulling adventure. And, making matters worse, indirect costs can mount in a hurry. At first glance, it would seem differentiating a direct cost from an indirect cost would be somewhat intuitive. And, in one respect it is. Because, you can name the labor cost and the materials cost per job and you’ve got the foundation for your direct cost column. Ther

Uber – what it means From Dictionary dot com, we learn that “uber” can be used as either an adverb or an adjective. When used as an adverb it means, “having the specified property to an extreme or excessive degree,” and as an adjective, “designating a person or thing that exceeds the norms or limits of its kind or class.” There is no mention at all of how the word is now being used as (I think) a verb. Here’s an example of how it is used in a sentence, “We thought about walki

We’re here in Salt Lake City, Utah at the Scaling New Heights convention produced by Woodard. We thought we would let you in on what we’ve been up to while we’re here. Keep in mind, everything we do (including convention attendance) hinges on our mission of helping our clients (small to medium commercial construction contractors) Run With the Big Dogs. And, we must tell you, we believe our experiences here have added to our ability to do so. Scaling New Heights through attend

Brand Personality including logos and such Brand Personality is made up of many different (and some moving) parts. How many times have you heard a product or service being noted as the “Rolls Royce” of their industry? Good thing the folks at Rolls have worked so hard to provide both an excellent product and an exemplary Brand Personality. Otherwise, those claims wouldn’t mean as much. Yet, there is much more to a Brand Personality than hood ornaments or company logos.  Let’s

Investing is different than paying to attend No matter which industry you’re in, seems there’s a convention or trade show for it. Perhaps more than one. And, unless your money tree is sprouting new leaves there is likely to be a cash consideration concerning attendance. So, you must make your attendance evaluation based on the ROI. Yep, Return on Investment. If you get more in value than what you pay, a conference can certainly be worth it. Look for the 3 “Es.” The best conve

Turn your contingency budget into your performance budget You can get your commercial construction team on board for saving time,  reducing rework, diminishing safety issues, and integrating increased productivity on each project. One way to do it is by giving your team the opportunity to reap the reward through moving the money from the contingency fund to the performance fund. Contingency budgets are real Before you get too excited about the possibilities. Or, before you ge

Advisory Board for Construction Contractors Advisory Board explained Before we go further, there is a distinction to be made. Don’t confuse an advisory board with a Board of Directors. A board of directors is made up of people who manage the CEO and formally approve all key decisions of the company. An advisory board, on the other hand, is an informal group of mentors, guides, or service providers who each have useful knowledge or expertise to bring to the table. So informal,

Promoting Your Commercial Construction Business Promoting your construction business While promoting your commercial construction business falls under the umbrella of marketing, don’t get it confused with your other marketing strategies and tactics. Briefly, a few things your marketing can include are paid ads, social media, blogging, sponsoring, and promoting. Plus, while we’re removing some confusion, I hasten to add that promoting is NOT the same as having a promotion. Thi

Counting the Cost in Construction Accounting Counting the Cost in Flood Waters There is an interesting law here in Arizona which is known by the name, “Stupid Motorist Law.” It says something to the effect of “any motorist who becomes stranded after driving around barricades to enter a flooded stretch of roadway may be charged for the cost of their rescue.” Apparently, the law can be found in Arizona Revised Statutes section 28-910. Also, just as apparently, the law isn’t reg

Growing Your Construction Business in 2019 Growing your construction business is much like planning to run with the big dogs. As a matter of fact, I wanted to title this piece, “How to Run with the Big Dogs.” I thought better of it. Yet, getting out and romping with the big dogs does have a great appeal, right? Growing up My cousin, (I’ll call him Andy) tells an “in my youth” story. Seems Andy had gotten his first full-time job soon after receiving his high school diploma. It