
Communication and documentation are crucial in the construction industry. Multiple individuals and organizations are involved, and the documents used range from simple to complex. Some are required, and others are just the icing on the cake. Construction companies and their projects affect and are affected by the local community, suppliers, service providers, and fellow contractors.
This article focuses on the communication and documentation necessary for three major players that affect your construction projects and, therefore, your construction business. They are employees, clients, and governmental agencies.
Just as communication takes place in many ways, remember that documents come in all shapes and sizes – think photos, checklists, audio recordings, filled-in forms, text messages, social media posts, contracts, wall plaques, certificates, and so on. As you can see, neither communication nor documents are limited to written or printed forms.
Communication and Documentation – Employees
Employee engagement goes deeper than having employees who are good at their trade. It is even more profound than having employees who follow instructions. It is based on having employees who:
Understand the appropriate tasks.
Know their permissions concerning problem-solving protocol.
Share in the company’s objectives.
Comprehend the company strategies.
Base their behavior on company culture.
A few of the documents that might be included are:
Contracts
Employee handbook
Written systems and procedures
Field reports
Mentions in company newsletters or on social media
Emails, text messages, or company-wide communication system
Handwritten notes of encouragement or praise
Federal and state tax withholding forms (W-4)
Identity confirmation (form I-9)
Direct deposit form
Emergency contact information
Background check release form
Timesheets
Paychecks
Thorough communication backed by proper documentation gives employees a greater incentive to think, feel, and act as part of the team. As a bonus, comprehensive documentation expedites new employee onboarding, ensuring consistency in knowledge transfer.
Communication and Documentation – Clients
Excellent client relationships are fundamental to your success. Providing superior customer service on every level requires communication and trust. Being respectful, listening attentively to feedback, addressing issues promptly, understanding the client’s goals, and delivering more than the basic requirements are all ways to communicate your desire to build a strong relationship. As a whole, how you communicate with your clients reinforces the value you bring to the table and sets you up for future business.
A few of the documents that might be included are:
Request for Proposal (RFP)
Scope of Work
Material takeoff
Bid documents
Specifications
Construction Submittals
Schedule of Values
Bill of Quantities
Request for Quote (RFQ)
Contracts
Construction schedule
Drawings
Daily reports
Purchase Orders
Invoices
Reminders for unpaid invoices
Change Orders
Punch List
Waivers and releases
Communication and Documentation – Governmental Entities
Although contractors must deal with many governmental agencies, this section focuses on only three: State and Local Planning and Development Authorities, OSHA, and the IRS. Communication and documentation are of prime concern when dealing with these entities.
It may feel like you’ve walked onto a field with landmines scattered about when dealing with these agencies. Take heart. There are maps for you to follow. And more importantly, there are advocates (guides) available for you. The four types of advocates we highly recommend are:
Construction-committed accounting and advisory service providers (Hint. That’s us!)
Construction-centric tax preparers
Attorneys who specialize in construction-related issues
Local and national trade associations (We’ve watched as some of these groups have been instrumental in getting legislators to provide more contractor-friendly legislation.)
State and Local Planning and Development Authorities
From pulling permits to the point at which your client receives a certificate of occupancy, “communication” and “documentation” are best friends who are seen walking hand in hand wherever they go.
The documents needed fluctuate according to your state and local requirements. The items listed below are from a make-believe city in a make-believe state, but they represent the type of documentation necessary for a Plan Review Application.
A few of the documents that might be included are:
Site plan
Code datasheet
Architectural plans
Structural plans
Electrical plans
Plumbing and mechanical plans
Specifications
Calculations
Heating and cooling compliance calculations: Calculations and methodology on the plans
Roofing system details: Include the type and grade of roofing, valley flashing material, underlayment, and installation method
Once the review process is complete, the permit fees can be paid, and a building permit can be issued. That doesn’t mean the docs stop there, as there may be further need for communication and documentation in the form of:
A stop work order (SWO)
Red tags
Request for reinspection
It is about rules and regs, thus ensuring regulatory compliance.
OSHA
Beyond site inspections, employee interviews, and implementation of corrective actions, OSHA representatives require specific documents. They include:
Training records
Employee exposure records
Injury records
Permits and licenses
Written hazard communication programs
Labels on hazardous chemical containers
Safety data sheets
IRS
When dealing with the IRS, it is proper to tread lightly (treat this situation cautiously and proceed carefully) while going boldly (act bravely and confidently) when you allow the best advocates to guide you.
If the IRS is nothing else, it is a document-heavy institution. When we asked, “How many forms does the IRS currently have?” Wikipedia replied, “There are over 800 various forms and schedules.” When we asked the IRS the same question, the reply included Forms, Instructions, and Publications and numbered 2951.
Obviously, not all those forms, instructions, and publications are essential to construction contractors. Yet, it is a good idea to know which are.
A few of the documents that might be included are:
Application for Employer Identification Number (EIN) (Form SS-4)
Employee’s Withholding Certificate (Form W-4)
Request for Taxpayer Identification Number (TIN) and Certification (Form W-9)
Employer’s Quarterly Federal Tax Return. (Form 941)
Wage and Tax Statement (Form W-2)
Non-Employment Income (Form 1099)
Installment Agreement Request (Form 9465)
U.S. Corporation Income Tax Return (Form 1120)
Profit or Loss from Business (Sole Proprietorship) (Form 1040)
U.S. Return of Partnership Income (Form 1065)
Communication and Documentation – Conclusion
Employees – Communication and documentation help employees stay organized and on track by providing a clear understanding of project requirements, progress, and potential risks. It also increases the collective knowledge of everyone on the team.
Clients – Effective documentation and communication can help you and your clients avoid misunderstandings, errors, or delays. It also increases the opportunities to ease clients’ fears and apprehensions about the project and can lead to mutual success.
Governmental Agencies – Understanding, controlling, and monitoring government documentation is essential to align with regulations and policies on every level, from local to state to federal.
Ambitious Construction Contractors look to The Profit Constructors to provide advocacy in dealing with:
Clients and customers
Employees and subcontractors
Vendors and service providers
Governmental entities
Working with The Profit Constructors gives Construction Contractors the means to organize their operations in ways that help them:
Remain informed
Avoid hassles
Reduce risks
Be future-ready
Ready for action? Or want to know more? Get in touch today to schedule a complimentary discovery call. 866-629-7735
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