Want to Be More Productive? - MONTHLY EDUCATIONAL JOURNAL OF THE FOUNDATION OF THE AMERICAN SUBCONTRACTORS ASSOCIATION - The Contractor's Compass
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MONTHLY EDUCATIONAL JOURNAL OF THE FOUNDATION OF THE AMERICAN SUBCONTRACTORS ASSOCIATION FEBRUARY 2021 Want to Be More Productive? 1004 Duke Street, Alexandria, VA 22314 | (703) 684-3450 | www.asaonline.com | communications@asa-hq.com
1 FORM. MULTIPLE QUALIFICATIONS. Join us and take part in bringing standardized qualifications to the industry! COMPASS aims to streamline the data collection process and help Subcontractors satisfy multiple qualification requests with our standardized form (the 1Form); eliminating the need to complete multiple unique forms. We are engaging General Contractors and other industry participants to adopt standardization, and would benefit from your support. If you agree with standardization in the qualification process, please show your support by filling out this short survey https://forms.gle/FWPJrfaXZMKcGfer7 1-800-689-6819 info@compass-app.com http://compass.bespokemetrics.com
FASA'S FEBRUARY 2021 EDITORIAL PURPOSE The Contractor’s Compass is the monthly educational journal of the Foundation of the American Subcontractors F E AT U R E S Association, Inc. (FASA) and part of FASA’s Contractors’ Knowledge Network. The journal is designed to equip construction subcontractors with the ideas, tools and Lagging or Leaping? Technology in Construction..........................................11 tactics they need to thrive. by Jenny Harris and Mary Klett, ASA Communication Team members The views expressed by contributors to The Contractor’s Compass do not necessarily represent the opinions of FASA or the American Subcontractors Association, Inc. (ASA). When Good Projects Go Bad....................................................................................12 by Gregg Schoppman, FMI MISSION Why Contractors Need to Make an IT Plan and Stick to It........................14 FASA was established in 1987 as a 501(c)(3) tax-exempt by Steve Antill, Foundation Software entity to support research, education and public awareness. Through its Contractors’ Knowledge Network, FASA is committed to forging and exploring the critical Three Behaviors Top Teams Avoid to Excel in Struggle...............................17 issues shaping subcontractors and specialty trade by Chad Pearson, Plexxis Software contractors in the construction industry. FASA provides subcontractors and specialty trade contractors with the tools, techniques, practices, attitude and confidence they Six Ways to Improve Productivity in Construction need to thrive and excel in the construction industry. Using Technology...........................................................................................................20 FASA BOARD OF DIRECTORS by Patrick Hogan, Handle.com Richard Wanner, President Courtney Little Richard Bright Want to be More Productive? Safety and Productivity Anthony Brooks Go Hand in Hand............................................................................................................22 Brian Cooper Jack Austhof by Jack Rubinger, freelance construction writer SUBSCRIPTIONS The Contractor’s Compass is a free monthly publication How a Connected Platform Translates to Improved Performance........24 for ASA members and nonmembers. For questions about by Michelle Turner, Procore Technologies subscribing, please contact communications@asa-hq. com. Productivity in Construction – The Elephant in the ADVERTISING Room Needs to be Addressed.................................................................................26 Interested in advertising? Contact Richard Bright by Eric Crawford, Fonn Construction at (703) 684-3450 or rbright@ASA-hq.com or advertising@ASA-hq.com. Using Contract Skilled Labor Can Save You Time, EDITORIAL SUBMISSIONS Contributing authors are encouraged to submit a brief Increase Profit and Productivity..............................................................................28 abstract of their article idea before providing a full-length by Ed Rojeck, Tradesmen International feature article. Feature articles should be no longer than 1,500 words and comply with The Associated Press style guidelines. Article submissions become the property of ASA Five Tips to Improve Your Construction Productivity...................................30 and FASA. The editor reserves the right to edit all accepted by Jessica Meno, writer for Raken editorial submissions for length, style, clarity, spelling and punctuation. Send abstracts and submissions for The Contractor’s Compass to communications@ASA-hq.com. ABOUT ASA D E PA R T M E N T S ASA is a nonprofit trade association of union and non-union subcontractors and suppliers. Through a nationwide ASA PRESIDENT'S LETTER.......................................................................................4 network of local and state ASA associations, members receive information and education on relevant business issues and work together to protect their rights as an CONTRACTOR COMMUNITY...................................................................................6 integral part of the construction team. For more information about becoming an ASA member, contact ASA at 1004 ALWAYS SOMETHING AWESOME.......................................................................10 Duke St., Alexandria, VA 22314-3588, (703) 684-3450, membership@ASA-hq.com, or visit the ASA Web site, www. asaonline.com. LAYOUT QUICK REFERENCE Angela M Roe angelamroe@gmail.com Upcoming Webinars..................................................................................................... 32 © 2021 Foundation of the American Subcontractors Association, Inc. Coming Up........................................................................................................................ 32
PRESIDENT 'S LET TER Dear ASA Members: I hope that many of you are beginning to feel as I do that we finally have two feet planted firmly in 2021. With the turn of every year there is always excitement for what is on the horizon, and now I am pleased to see that all of our enthusiasm wasn’t unwarranted. There are incredible things happening here at ASA, and I am thrilled to share just a few of them with you. All of us at ASA recognize that SUBExcel was cancelled this year, which is why we are going out of our way to offer additional webinars, both live and recorded, as well as podcasts to meet all of your educational needs. Make sure that you are unlocking all the value of your membership by reading ASAToday, checking the members-only area of the website called the "Info Hub," and subscribing to our social media channels. Making sure that you are getting the most out of your ASA membership is incredibly important to everyone at ASA National, and I highly encourage you to take advantage of everything this organization has to offer. There has also been exciting news on the advocacy front. On February 5, 2021, I am very pleased to report that ASA, along with 13 construction industry trade and professional organizations, sent comments to the Federal Acquisition Regulation (FAR) Council regarding their proposed rule to amend the FAR to provide guidance on the use of reverse auctions. Collectively, our comments represented tens of thousands of firms and individuals engaged in architecture, engineering, construction program and project management, surveying and mapping, prime contracting, subcontracting, specialty trade contracting, supplying, and surety bond producing. As such, these organizations have a unique knowledge concerning reverse auctions and federal procurement. It was our recommendation that FAR Subpart 17.803 be amended to comply with the recently enacted law (Public Law No: 116-260), which ASA drafted and advocated for during the 116th Congress, directing the FAR Council to prohibit the use of reverse auctions in the procurement of construction services. I want to thank all of you for your continued dedication to the subcontracting community, and I look forward to the day when we will all be able to gather together again. God Bless, Brian Cooper ASA President 2020-2021 4 F E B R U A R Y 2 0 2 1 T H E C O N T R A C T O R ’ S C O M P A S S
PER THE LETTER: Reverse Auctions are an Inappropriate Method of Procurement for Design and Construction Services Reverse auctions are inappropriate platforms for Reverse auctions ignore the protections of sealed procurement of construction services. Due to the bid procurement laws and regulations, and years of complexities of design and construction projects, precedent that address critical factors and ensure the procurement of these services using the reverse the integrity of the process. Where price is the sole auction method fails to take into account the unique determinant, the sealed bid procurement process mix of services and systems tailored to individual ensures integrity by assuring that the successful owner needs and budgets, site conditions and bidder is the most responsive and responsible requirements, and the changing composition of the competitor with the best price. The pressure and pace project team, unlike products and commodities which of the auction environment removes any assurance are manufactured with little or no variability. The bids will be responsive and material to the owner’s reverse auction procurement method often favors needs. This encourages significant risk taking, which businesses offering the lowest price, rather than is not appropriate for construction services that those that are most qualified, which will compromise potentially impacts life and property safety. quality, overlook small businesses, or even require a Proponents in support of utilizing reverse auctions new bidding process down the road, eliminating any might view this procurement method as practicable perceived initial savings. and economically advantageous for procuring Reverse auctions do not offer federal owners a simple off-the-shelf commodities; however, design good way to evaluate non-price factors nor do they and construction services are vastly different, far guarantee any proven savings over competitive too complicated, and present a high risk of failure bidding. When price is not the sole determinant, when procuring construction contracts using this owners increasingly rely on selection criteria such as procurement method. It is for this reason that qualified past performance, qualifications and the capacity to and sophisticated construction firms do not participate meet the project’s unique needs. Reverse auctions in federal reverse auctions as the process moves too do not promote this dynamic. Instead reverse rapidly in order for bidders to accurately assess their auctions promote an approach in which parties costs, which in turn has the potential to jeopardize focus only on price. Software vendors and other their construction firm, as well as downstream parties, similar industries promoting reverse auctions have i.e., subcontractors, and suppliers. Furthermore, the not proven that reverse auctions generate savings in surety industry responsible for furnishing surety the procurement of construction or provide benefits bonds, which are mandated on federal construction of “best value” comparable to currently recognized contracts above $150,000 by the Miller Act (40 USC selection procedures. Unlike many products, for 3131, et, seq.) is opposed to reverse auctions for design which the government awards contracts to the lowest and construction services due to high-risk and the bidder, or other services, which are awarded based potential for contract default. on the “best value”, construction services have long These are just some of the many reasons reverse been recognized as having a significant impact on auctions are an inappropriate method of procurement public health, welfare and safety. Moreover, reverse for design and construction services. auctions can put small businesses at a competitive disadvantage. T H E C O N T R A C T O R ’ S C O M P A S S F E B R U A R Y 2 0 2 1 5
CONTRACTOR COMMUNIT Y ASA Annual Business organization better. Click here to Verizon 5G network and 22% register today! Meeting and Virtual Awards Discount for ASA members Presentation Whether your employees are working ASA has TWO exciting events from home, the office or a job site, coming up that are incredibly they can now access Verizon’s new 5G important to all ASA Members. Don't network. Plus, receive a corporate miss out on meeting with members discount on Verizon. Eligible business from across the country. Even though members can save 22% off Verizon AssuredPartners signed a monthly access fees. we can't be together physically at this cooperative agreement with ASA to As an ASA member, you’re time, we look forward to celebrating as provide its subcontractor members automatically a National Purchasing an organization, and hope you will join with innovative Insurance & Risk Partner member, and you can offer a us. Management education and product similar discount to your employees On February 25th will be the ASA solutions. Virtual Awards Presentation. Come as well. Members can also save on celebrate all of the ASA Award winners Our Construction Blueprint process 5G capable devices. Restrictions may this year! Every year ASA honors starts with listening and collaboration apply. chapters, businesses, and individuals with our Claims, Safety & Risk Transfer • Verizon 5G marketing material who excel in a wide variety of ways, teams to determine your risk tolerance, so together we may find • Link to ASA's NPP Landing Page and we hope you will join us in honoring them. This year's Awards innovative solutions that lower your Presentation will be virtual, but all Total Cost of Risk. award winners will be recognized Our exceptional relationships with ASA Calls Upon Congress for during SUBExcel 2022. Click here to Insurance and Surety underwriters A Robust Multi-Year Highway join us for the Awards Presentation! gives ASA Subcontractors the benefits of a globally connected Insurance and Public Transportation On March 10th will be the ASA Reauthorization Bill Annual Business Meeting. This event Broker and Risk Management Consultant with local services and ASA joined 32 national associations is open to all members, and so here’s responsive attention. It’s what we call of the Transportation Construction another chance to know what’s going Power through Partnership. Coalition (TCC) calling upon on, and how you can make our congressional leadership for a robust, multi-year highway and public 6 F E B R U A R Y 2 0 2 1 T H E C O N T R A C T O R ’ S C O M P A S S
transportation reauthorization bill. (OSHA) released guidance for 4. Implementing protections from Our surface transportation system is employers titled, Protecting Workers: retaliation and setting up an in dire need of additional investment Guidance on Mitigating and anonymous process for workers to and the American Society of Civil Preventing the Spread of COVID- voice concerns about COVID-19- Engineers (ASCE) identified a near 19 in the Workplace. This guidance related hazards. $2.5 trillion funding gap for our surface contains recommendations as well as Return to Work Criteria transportation network, of which descriptions of mandatory safety and The guidance discusses additional $1.7 trillion is needed for our nation’s health standards. It does not create measures for limiting the spread of highways, $181 billion for bridges, and new legal obligations for employers. COVID-19, starting with separating and nearly $535 billion for our nation’s Instead, as stated by OSHA, “the sending home infected or potentially transit system, over a 20-year period. recommendations are advisory in infected people so they cannot infect Addressing this gap with additional nature, informational in content, and other workers. Employers should investment would pay dividends by are intended to assist employers follow a symptom-based strategy for improving safety and mobility. in providing a safe and healthful identifying, separating, and sending Meanwhile, the COVID-19 workplace.” The Construction Industry home workers according to OSHA, pandemic continues to take its toll on Safety Coalition (CISC) prepared the although there may be limited transportation construction revenues following outline of OSHA’s Guidance: circumstances where a test-based and programs, and state and local COVID-19 Prevention Programs strategy is appropriate. transportation agencies are plagued by The guidance encourages employers Under a symptom-based strategy, uncertainty surrounding the September to implement COVID-19 Prevention workers who think or know they had 30th expiration of federal highway Programs in the workplace. According COVID-19 and had symptoms should and public transportation programs. to the Agency, these programs are an only return to work after: A robust, multi-year reauthorization of effective way to mitigate the spread 1. At least 10 days have passed since the FAST Act would provide a much- of COVID-19 at work and employees symptoms first appeared; needed boost to economic recovery and/or their representatives should and restore confidence that Congress be involved with the program’s 2. At least 24 hours have passed with and the president can work together to development and implementation. The no fever without fever-reducing achieve shared national objectives that guidance lists 16 elements—four of medication; and will improve the lives of all Americans. which are considered key elements— 3. Other symptoms of COVID-19 are To that end, we called for three core that should be included in a COVID- improving (loss of taste and smell principles: 19 Prevention Program. The four key may persist for weeks or months • at least a five-year reauthorization elements that should be included are: and need not delay the end of to allow for long-term planning and 1. Identification of where and how isolation). investment; workers might be exposed to Some workers may need to isolate • significant funding increases over COVID-19 at work by conducting a longer than 10 days, as recommended current levels to meet America’s hazard assessment. by their doctor. Please keep in transportation needs and improve mind that while the Americans 2. Identification of a combination of the safe and efficient movement of with Disabilities Act (ADA) permits measures that will limit the spread people and goods; and employers to ask for a doctor's note of COVID-19 in the workplace. to verify that workers are healthy and • build on the project delivery and This includes a combination of able to return to work, OSHA does not regulatory approval process eliminating the hazard, engineering encourage such a practice given the enhancements made in the controls, workplace administrative potential delays and demands on the previous two surface transportation policies, personal protective healthcare system. laws to ensure the timely delivery of equipment (PPE), and other measures, prioritizing controls from As for workers who have been in projects and benefits. most to least effective, to protect close contact with a COVID-19 positive workers from COVID-19 hazards. individual, local health departments typically establish the quarantine OSHA’s Recent COVID-19 3. Instruct workers who are infected guidelines for such individuals. While Workplace Guidance or potentially infected to stay the CDC continues to recommend that On January 29, 2021, the U.S. home and isolate or quarantine such individuals stay home for 14 days Department of Labor’s Occupational to prevent or reduce the risk of after their last contact and monitor Safety and Health Administration transmission of COVID-19. their symptoms, it recently provided T H E C O N T R A C T O R ’ S C O M P A S S F E B R U A R Y 2 0 2 1 7
the following two options to shorten an between workers and ventilation. At employers provide all workers with individual’s quarantine below 14 days: fixed workstations where workers are face coverings at no cost to the worker. 1. Quarantine can end after 10 days not able to remain at least six feet away In addition, employers should require after an individual’s last contact from other people, OSHA recommends any other individuals at the workplace with COVID-19 without testing and that transparent shields or other solid (e.g., visitors, customers, non- if no symptoms have been reported barriers (e.g., plexiglass, flexible strip employees) to wear a face covering during daily monitoring. curtains) be installed. These barriers unless they are under the age of two do not replace the need for social or are actively consuming food or 2. Quarantine can end after seven distancing according to the Agency, beverages on site. days after an individual’s last and six feet of separation should still OSHA standards may require contact with COVID-19 after be maintained between individuals employers to provide PPE to receiving a negative test. The test when possible. supplement other controls when the must occur at least five days after OSHA also recommends that measures discussed above cannot be the individual’s last exposure. employers improve ventilation to implemented or do not protect workers In either of these scenarios, the prevent the spread of COVID-19 in fully. In these scenarios, employers individual must continue to monitor buildings. The guidance lists a number must determine what PPE is necessary their symptoms until 14 days after of helpful strategies to achieve this and provide all necessary PPE to their last exposure and self-isolate if goal, such as: workers at no cost in accordance with symptoms reappear within that period, relevant OSHA standards. 1. Increase ventilation rates when wear a face covering, stay at least six possible. Sanitization, Cleaning, and Disinfecting feet from others, wash hands, and 2. When weather conditions allow Practices avoid crowds, amongst other steps to prevent the spread of COVID-19. and it does not pose a safety Per OSHA’s guidance, employers or health risk to others in the should ensure that workers, customers, In limited circumstances, employers building, increase fresh outdoor air and visitors have adequate supplies may consider permitting critical by opening windows and doors. and time to clean their hands infrastructure workers to continue to Fans can be used in conjunction frequently and cover their coughs work when it is necessary to preserve with open windows to increase and sneezes. Posters encouraging the function of critical infrastructure effectiveness. hand hygiene and physical distancing workplaces. 3. Reduce or eliminate air should be posted at the entrance to a Social Distancing Measures workplace and in other areas where recirculation. Maintaining at least six feet of they are likely to be seen. These 4. Improve central air filtration distance between individuals can posters should be in a language to the MERV-13 or the highest be one of the best ways to protect workers can understand, including compatible with the filter rack, individuals from infection. As such, non-English speakers. and seal edges of the filter to limit OSHA recommends that employers Employers should also develop, bypass. implement various measures such as implement, and maintain a plan to limiting the number of people in one perform regular cleanings to reduce place at any given time (including Face Coverings and PPE the risk of exposure to COVID-19 in during toolbox talks and safety Face Coverings are simple barriers the workplace. This should include meetings), increasing the physical that help prevent respiratory droplets routine cleaning and disinfecting of space between workers and/or from reaching others. According all frequently touched surfaces and customers, altering work spaces to add to OSHA, face coverings should portable jobsite toilets, prohibiting the physical cues reminding individuals to be made of at least two layers of a sharing of objects or tools between physically distance from one another tightly woven breathable fabric and workers or ensuring appropriate (e.g., signs, tape marks, decals, etc.), should not have exhalation valves or cleaning and disinfection of shared offering vulnerable workers duties that vents. They should fit snugly over tools, providing disposable disinfecting minimize their contact with others, and the nose, mouth, and chin with no wipes so that commonly used surfaces prohibiting handshaking or other forms large gaps on the outside of the face. can be wiped down before each use, of physical contact. When worn properly, face coverings storing and using disinfectants in a can suppress the spread of COVID- responsible manner, and advising Engineering Controls 19. Wearing a face covering, however, workers to always wear gloves or is complementary to and not a The guidance discusses two additional PPE appropriate for the replacement for physical distancing. specific types of engineering controls chemicals being used. for employers to consider: barriers The guidance recommends that 8 F E B R U A R Y 2 0 2 1 T H E C O N T R A C T O R ’ S C O M P A S S
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A LWAY S S O M E T H I N G This is the first in a series that we will include in The Contractor’s Compass on an ongoing basis, highlighting the achievements of ASA members. Do you want to share something awesome?! Send us an email at communications@asa-hq.com. As one of the largest Mark Drury, S&D’s mechanical contractors vice president, business in the DC metropolitan development, gives the tour, region, Shapiro & Duncan and explains each aspect of has built a team of welders, the facility, including the 302- pipefitters, plumbers, kW solar farm on their facility instructors, and virtual roof, which produced 97 design coordinators percent of the energy used at to create state-of-the- the facility in 2019. In 2020, it art plumbing and HVAC was 99 percent. In addition, assemblies and modular they sell back to the grid system components ready any energy produced during for just-in-time delivery and include captions, since many people non-operating times. They installation. need to watch in silent mode. With estimate their investment will be paid In a normal year, Shapiro & Duncan good planning, the filming took a day. off in about six years, with a 25-year life (S&D) gives dozens of behind the Shapiro & Duncan pride themselves on span for the panels. Here’s a different scene tours to students, customers - the preparation and thought process of video on the solar installation. and even competitors, of its 52,000 sq.ft their prefab facility, and included that in Future plans for the plant include prefabrication facility in Landover, MD - their video production as well. expanding the laydown space, as they the largest open merit shop in the Mid- The video shows how their find themselves needing larger areas to Atlantic region. But 2020 changed all of equipment maximizes the efficiency of assemble pre-fab components. that, and while the interest in the shop each cut, reducing waste; showcasing Thanks to Shapiro & Duncan for continued, the practical alternative was their solar farm, modular construction, sharing this video and letting everyone to put the tour online. And so they did. productivity, equipment, quality get a glimpse of what goes on inside a After researching other shop tour control, safety, training, storage, and well-run pre-fab facility. videos, Stacey Holsinger, S&D’s technology. Their 2016 Fab Shop video Again - if you have news to share, marketing manager, knew they needed details how S&D handles the creation innovations, or just want to highlight to focus on sound quality (how do you of Spool 53 - the largest pipe in the something you think your company is drown out welding and cutting noises HVAC system. Take a look at this video, doing well, just send us a note. while recording?) and to detailing the “life of pipe.” 10 F E B R U A R Y 2 0 2 1 T H E C O N T R A C T O R ’ S C O M P A S S
F E AT U R E Lagging or Leaping? Technology in Construction by Jenny Harris and Mary Klett, ASA Communication Team members Initially, construction may have been a slow adopter of industry to the front of the tech pack. They’ve been able to technology, but over the years we have seen a significant do just fine “the old way.” Construction industry workers have shift. The construction industry now embraces technology not had the luxury of an incremental tech adoption, like many and all the advantages it provides in helping contractors other industries. manage the myriad of multifaceted, intricate and extremely ASA is experiencing a surge of tech companies joining our complicated construction processes. The recent (and organization, bringing their software and systems to ASA ongoing) adoption of hand-held computers for tasks such members. It’s a win-win for everyone, but it can be difficult to as reporting, measuring, and contract-signing, has brought know what is the best product for your business. Below is a the construction industry to the forefront of technological brief summary of the software-based technology companies advances for productivity. that have joined the ASA fold. As fellow ASA members, we Sometimes it’s still tough for construction workers who encourage you to give them a look and see if the answer to are accustomed to working with pen and paper to push the your most recent issue could be right at your fingertips. Bespoke Metrics (COMPASS) report critical, construction-related information Visit their website for a demo. Email to: connect@ Bespoke Metrics blends expertise in data control, like retainage, prevailing-wage rates, certified plexxis.com. Tel: 1-905-889-8979. model development and user interface to provide payroll, multiple trades, job activities, percent innovative solutions for industries looking to complete, change orders, POs and subcontracts, Procore Manage your projects, resources, and utilize data to its fullest. Their COMPASS tool equipment usage, AIAs, union deductions and financials on one open, easy-to-use platform— analyses risk for subcontractors and contractors fringes, etc. Executive dashboard, timecard designed for how you actually build. One million by looking at financial statements, assets, submissions, document imaging - store and projects running on Procore. Pre-construction, revenue, income. For subcontractors the “1Form” access. Visit their website for a live demo. Email project management, quality & safety, design is a qualification form whereby you get approved to: info@foundationsoft.com. Tel: 1-800-246-0800. coordination (VDC, design, ops, field teams). by 70+ general contractors across North America. Located in 125 countries. Received 2021 Best Subcontractors satisfy multiple data requests. GCs Kahua Computer Software Customer Support Award from TrustRadius. Visit get higher quality data. It also satisfies more than Construction program and project management their website for a demo. Tel: 1-866-477-6267. 92% of surety applications. Their new DataControl software. Manage construction program costs, app lets subcontractors respond directly and documents and processes from inception through Raken More than 4,000 GCs and specialty securely to questions from contractors. Visit their turnover to improve efficiency and reduce risk. contractors use Raken’s field management website. Email to: info@compass-app.com. Tel: Founded in 2009 and first product released in solution. Designed to integrate with other 1-800-689-6819. 2014. Kahua means foundation or platform in construction management tools. Raken won Hawaiian. Project management and collaboration more than 12 awards in G2's latest report such Fonn Construction team collaboration software for real estate, design, engineering, as best ease of use, best estimated ROI, highest management software. For builders, created by construction and operations.More than 5,500 rated support, and most implementable in the builders. Create and share forms, documents, customers, 80,000 projects managed on Kahua construction software space. Visit their website for warranties, communications. Cost is per project. software, and 1000+ apps developed. Named to a demo and 15-day free trial. Tel: 866-438-0646. Company was founded in 2016 in Norway, and Deloitte’s Technology Fast 500 of 2020. Visit their major construction companies in Norway, UK, website for a demo. Email to: info@kahua.com. Tel: Rhumbix Transform your field reporting into and U.S. are clients. In January they reached 1-770-641-9994 data-driven workflows to save time and increase a milestone of 20,000 projects using Fonn your project insights. The Rhumbix Field Data technology. Visit website for a demo and free, Plexxis Project management, accounting, Platform enables your team to seamlessly capture 2-week trial. Email to hello@fonn.io. Tel: 1-888-418- estimating and mobile apps on a single tech stack and connect your vital field data to gain stronger 1995. that enables live feedback between bidding, field project-level visibility. Time & Materials Tracking, & finance while eliminating the need to build and Timekeeping & Payroll tracking, Production Foundation Software Construction maintain integrations. In-house lifetime services Tracking, Daily Construction Reports, Custom Accounting Software - Job costing, payroll, for development, DBA, deployment, support & Workflows. Designed for the field. Visit their and project management. With construction optimization, delivering a 98.4% rate of adoption. website for a demo. Email to: info@rhumbix.com. accounting software, you can track financials and Features focused on subcontractor workflows. Tel: 855-748-6249. T H E C O N T R A C T O R ’ S C O M P A S S F E B R U A R Y 2 0 2 1 11
F E AT U R E When Good Projects Go Bad by Gregg Schoppman, FMI Most projects don’t start off being bad. “spotting” the Polar Wolves 14 at the start They begin with the best of intentions but of the game or handicapping their odds. possibly lack the nurturing, caring and In the end, if the Reptiles win – which planning to be successful. There are also was expected – but fail to achieve a two- those projects that take a dark turn, but touchdown advantage, fans, pollsters, etc. their trajectory provides a false sense of see it as a failure. An uncanny example of security to management. They exhibit winning but failing at the same time. signs of being a best in class project, Similarly, consider a contractor that has one that will become the cover page of a project that they bring in at 20% gross the sales brochure. However, below the margin. On the surface, this sounds like a surface, there are signs and indications. A win. However, after you factor in that the client starts to pay just a little bit slower. project was estimated at 45% and the handicapping factor. A key trade partner goes bankrupt. The overhead of the firm is 21%, you realize that For each project, the collection rate supply chain sees a small interruption. A this project was an unmitigated disaster. show Pre- and Post-COVID. The resulting ripple. Before long, the poster project Now consider projects in the new “Payment Risk Handicap” is shown on the quickly becomes the pariah. environment. What if projects in this new far-right side. The aim of this factor is to Firms are spending a great deal of Post-COVID world had similar normalize the data in such a way provides energy to understand the short and long- handicapping practices to provide a an accurate comparison. For instance, the term ramifications of the Post-COVID-19 different set of optics on a project? factors are shown in Table 3. world. Throughout the world, there are Consider the list of projects in Table 1. It is important to note that all of these handicapping factors are deeply subjective. While there are most likely industry benchmarks, the idea is to use the internal firm comparatives. For example, industry collections hover around 45 days for above average performance. That being said, the contractor in this example operates in multiple sectors so it is important to projects that were irreparably harmed due This snapshot illustrates the firm’s work provide a factor that can translate to all to stops and restarts, while others barely in progress for its complete portfolio. In project types. saw a hiccup of a delay. For many, their addition to showing the variance from bid Now look at Multi-Family B. This project work in progress report may have seen day, additional comparisons are shown actually showed some modicum level of little disruption, allowing leaders to take a Pre-COVID and the margin as of today. The margin enhancement (7.15% from 7.00%) deep sigh of relief. Is this a tad premature? contract values are shown to help provide but it is also showing a deterioration Are some of these projects heading into the context on the margin contribution. From in collections. On the surface, this one “Bad Zone?” this perspective, the forecast for the firm indication does not demonstrate potential In what seemed like an eternity ago, we looks relatively strong. It appears our team failure but is it a portent of things to come. had sports. Take a college football game will win but as we know from sports, this is In an similar fashion, the same process pitting two rivals - the Southern Reptiles also the reason we play the game. could be done for other aspects of the versus the Northern Polar Wolves - against One of the first areas that should be project. For instance, the aim is to examine each other. The Southern Reptiles in this analyzed is the collection cycle. Table 2 areas that might have been adversely game are favored by 2 touchdowns, or 14 is an illustration of the same project list affected by the COVID-19 pandemic or points. Put another way, the Reptiles are but with a different characteristic – the 12 F E B R U A R Y 2 0 2 1 T H E C O N T R A C T O R ’ S C O M P A S S
However, the scoreboard actively provides feedback throughout the game and team leaders use that data to develop course corrections. If they are down by two touchdowns in the first quarter and they have zero yards of rushing, the coaches enact a mitigation plan. Construction leaders today cannot be lulled to sleep by a “satisfactory” scoreboard. Doing so will allow complacency to set in and the good to become the bad. any other economic deviation. In the process compliance are also calculated, example in Table 4, the supply chain and the Table 7 provides a summary of each About the Author the critical path are investigated. Hospital B handicapping factor as well as a total. project shows the greatest impact related As a principal with FMI, Gregg specializes It comes as no surprise that Multi- to material procurement. Interestingly in the areas of productivity and project Fam B shows the greatest POTENTIAL enough, this project was performing at a management. He also leads FMI’s project for becoming “bad.” So, was the intent to margin of 11% but it also shows the greatest management consulting practice. He has create a tool that serves as a self-fulfilling potential risk through schedule overages. completed complex and sophisticated prophecy? The aim of any tool – whether The handicapping factor was calculated construction projects in the several different it be a standard work in progress report based on the overage in Table 5. niches and geographic markets. He has or a handicapped version – is to drive also worked as a construction manager action. With so many warning signs, senior and managed direct labor. FMI is a unique management not only has the optics to and fast-growing firm of professionals defuse a potential disaster but implement passionate about creating a better future for a series of steps to protect the firm. For engineering and construction, infrastructure instance, the firm can do any of the and the built environment throughout following: North America and around the world. For • Owner Meetings – Discuss payment more information on FMI, please visit www. terms and examine customer liquidity fminet.com or contact Schoppman by email • Schedule – Develop alternate work at gschoppman@fminet.com. Similarly, a firm can measure the schedules or alternate products that may potential “General Condition Burn Rate” be more readily available which is another extension of the schedule impacts. See Table 6. • Subcontractor Performance – Conduct a series of deep We see once again Multi-Fam B rears its trade partner coordination ugly head again. While it would be intuitive meetings to discuss to assume that any projection or forecast performance, risk mitigation, would account for general condition etc. overages, there are probably many instances where managers fail to correlate Harkening back to the the critical path and monthly cost report football example, if the Reptiles effectively. were down by two touchdowns at the end of the game, there After additional factors for trade would be great disappointment. contractor performance and internal T H E C O N T R A C T O R ’ S C O M P A S S F E B R U A R Y 2 0 2 1 13
F E AT U R E Why Contractors Need to Make an IT Plan and Stick to It by Steve Antill, Foundation Software According to the 2020 JB Knowledge ConTech Report, more than 22% of construction workers said they use more than six construction-based apps. team to use the technology correctly, it doesn’t always go according to plan. According to AGC, while over 60% of contractors indicated that they had a formal IT plan that supports business initiatives — compared to 48% in 2019 — many still struggle with choosing tech and training employees to use As the COVID-19 pandemic and realize the extra benefits technology their technology effectively. By creating its restrictions continue at the start brings to their businesses. In its an effective plan — and sticking to it — of 2021, the dust is still settling for 2021 Construction Hiring and contractors can succeed in their tech contractors and the construction Business Report, Associated General goals throughout every stage of the industry. Although a stimulus package Contractors of America (AGC) stated process. and recovery could be on the way, that over 25% of respondents said that in the meantime, contractors’ focus they planned to increase spending Starting your Own IT Plan should remain on finishing existing on tech for document management, Often, the best place to start creating projects while preparing their business project management, accounting, your IT plan is by reviewing what you for whatever the future holds. To be estimating, and human resources. already have. Begin talking with your ready for what’s in store, contractors Along with this increase in individual IT person or perform your own internal need a plan — or, more specifically, pieces of software, IT plans are also audit to get an idea of the software and an IT plan. A formal IT plan can beginning to take a more rounded systems you currently have in place, help contractors explore viable tech approach by looking at the entire along with which of those programs options to increase the efficiency of picture of the tech platform to increase integrate to “talk” to one another. their business, even in the face of the efficiency at every step of the way. Next, list the areas of your business unfamiliar. Assessing which programs and that you know need improvement. platforms are client-hosted compared In Foundation Software's 2020 Keeping Ahead of the to vendor-hosted, for instance, helps Construction Business Report, for Competition to make sure that future software example, 41% of contractors noted that A good IT plan can save your decisions align with IT plans. By having they needed better communication business time and money, improve this mapped out ahead of time, owners between teams. 32% contractors remote work, speed up workflow can get a clearer picture of how they struggled with manual processes, and and strengthen data security, but it should proceed when implementing 17% had problems with the lack of also helps to keep you competitive. new technology, and ultimately reduce mobile and integrated technology. As That extra edge will be necessary costs. common areas where problems tend to keep up as seemingly more and However, from finding the right to pop up, these may be good areas to more contractors are beginning to product or platform to getting the begin your review. 14 F E B R U A R Y 2 0 2 1 T H E C O N T R A C T O R ’ S C O M P A S S
Knowledge ConTech Report, over 22% of construction workers said they use over 6+ construction-based apps. Not only can this cause “app fatigue” for your staff from having to cycle through all of these programs but without integrations connecting these different tools it also becomes too easy for data to become scattered and segmented across multiple platforms. With the proper integrations in place, necessary information can be easily shared with minimal user intervention, ultimately reducing errors and creating a single source of truth for your data. What’s on the horizon While projections initially were Fig. 1 Construction Business Report thrown off by the COVID-19 pandemic, contractors may see government With your audit of current tech get rid of it — or specifically invest in relief sometime within the next few complete, list out some of the needed new technology because it offers that months. But in the meantime, don’t features that your current tech doesn’t feature if they don’t have it. It can make sit around waiting for recovery to just have. If you have one, talk to your IT all the difference in how work moves happen. Be proactive about improving person to see what feedback they through the office. your workflow through information have. Similarly, see what the office staff technology. Forming an IT plan will likes and dislikes about your current Exploring Integrations help you recognize areas you can tech — and make sure not to leave out After finding what you and your improve in the short and long term and the field team, either! They may have employees need from your tech, talk prepare you for whatever the future different problems or encounter other to your software vendors to see what holds. issues that your office staff doesn’t. suggestions they have, even if it’s for Keep this wish list in mind to help products they don’t specifically offer. you narrow down your search to the Ideally, your vendor will have a solution About the Author technology you actually need and not that addresses all your needs while Steve Antill is the CRO at Foundation just the software or tech that looks also integrating with your current Software and Payroll4Construction. “pretty.” As always, whenever you’re software. com, where he leads the charge for looking for new tech, make sure it’s Through integrations, you can continual revenue growth, including addressing your needs first. connect separate programs together new entry points into market to Keeping your employees involved in to allow for cross-usage that normally serve contractors. He invests much the IT plan also helps make it easier for wouldn’t be possible. For instance, of his time building partnerships and them to “buy in” to any changes that a contractor may have software that relationships across the construction have to occur. While a few employees specializes in job costing, but they industry with contractors, CPA may suffer from technophobia and be may find that they’re spending too firms, associations and technology naturally resistant to any tech changes, much time moving that data over to vendors. Over 20 years, he’s led more putting new systems in place or their bidding estimate software. With than 1,000 software selections and altering the steps to routine processes the right integration, they’ll be able to implementations for contractors of can be frustrating for everyone access job costing data and features numerous sizes and trades. involved. On top of that, new tech right from the bidding software’s Foundation Software delivers job almost always requires more training, interface. In the end, this results in cost accounting, project management disrupting already busy schedules saving time while also preventing any and mobile applications, along with while making more demands from the costly re-entry mistakes. payroll services, to help contractors staff to fit in training time. Because Many contractor’s IT plans often fail run the business side of construction. of this, it’s important to keep your to include services that work with each For information, call (800) 246-0800 or employees in the loop with your tech other, resulting in more time wasted email info@foundationsoft.com. plans. If there’s a feature that makes on entering the same data in multiple their tasks easier, you may not want to locations. According to the 2020 JB T H E C O N T R A C T O R ’ S C O M P A S S F E B R U A R Y 2 0 2 1 15
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F E AT U R E Three Behaviors Top Teams Avoid to Excel in Struggle by Chad Pearson, Plexxis Software The bad news is struggle will define in a group completes 50% of the work, We serve the team by providing the next five years. The good news is while the rest of the group shares the everything they need to succeed those who excel in struggle will define remaining 50%" while protecting them from threats the next 20 years. For example: and three categories of harmful Thankfully, top teams who consistently • If there are 10 people in a group, behaviors: distracting, destructive, and outperform competitors, regardless approximately three people do incompatible. of the struggles they face, share one 50% of the work and 7 share the As leaders protect and serve the team, common thread we can all learn from in remaining 50%. teammates protect and serve each other order to build teams that not only excel • If there are 25 people in a group, by giving their best effort to make each in struggle, but absolutely love it. approximately 5 people do 50% of day easier for everyone while supporting A little warning first. This is a long the work and 20 share the remaining each other through bad days and article so if you’re concerned about the 50%. protecting each other from bad habits. next 5 years, set some time aside...If you • In a group of 100 people, Here’s a detailed breakdown of the got the attention, we got the tips. Enjoy! approximately 10 people complete three categories of behaviors we avoid in 50% of the work and 90 share the order to prevent Price's Law and excel in Here we go remaining 50%. struggle. Many teams use their collective Any reasonable person would agree wisdom and historical data to predict that Price's Law exposes unfairness Category 1 of 3: and plan but that’s not enough anymore. between those who invest their best Distracting Behaviors While past behavior has normally been effort, often referred to as ‘The Roots’ or An exceptional experiment called ‘The a great predictor of future behavior, ‘A Players’ versus those who invest just Bad Apple Experiment’, by Will Felps we now live in a VUCA world (Volatile, enough effort to get by. Even though from the University of South Wales Uncertain, Complex, Ambiguous) where most would agree, few try to prevent it identifies three distracting behaviors. the future is unpredictable and how when it becomes visible. (You can read about the experiment and people interact is changing. how it ties to culture in; ‘The Culture Past experience and metrics are How do top teams prevent Code: The Secrets of Highly Successful becoming dangerously unreliable for Groups, by Daniel Coyle). Felps labels predicting and planning for the future of Price’s Law? the behaviors as; our VUCA world. Top teams who consistently outperform others, despite challenges, • The Jerk (aggressive and defiant) Top teams who excel in struggle and • The Downer (has a tired depressive maintain an exclusive culture of constantly outperform others go beyond attitude) performance and family-like chemistry metrics and focus heavily on preventing that naturally protects them from Price's • The Slacker (withholds effort) Price's Law from infecting their team. Law in the same way strong families care While these three types of behaviors Teams who prevent Price's Law turn for each other and protect each other impact teams differently, Felps showed the struggle of VUCA scenarios into from threats and harmful behaviors. that all three categories of behaviors advantages instead of obstacles while taking immense pleasure in doing so. Our company, Plexxis Software, decreased the effectiveness of the Following their path may be the single creates software for subcontractors. groups by about 30%. most effective way to crush the next 5 As subcontractors work in a VUCA In short, when there’s a Jerk in the years while becoming a defining force for industry, we have been hyper focused room, people don’t feel safe enough to the next 20. on maintaining a culture that prevents open up, which harms the team and their Price's Law for over 20 years. Of the outcomes. What is Price’s Law? dozens of tactics we use at Plexxis, the When there’s a Downer in the room MOST important for maintaining a strong who starts telling everyone how tired Price’s law is an imbalance of effort culture that prevents Price's Law is our on the team that gets worse as groups they are and shows physical signs of ‘protect and serve’ mindset. defeat, such as hanging their head low, get bigger. The law itself says that “the square root of the total number of people others in the room start behaving the T H E C O N T R A C T O R ’ S C O M P A S S F E B R U A R Y 2 0 2 1 17
same way and adopt the low energy There are many destructive behaviors, tech companies have invested trillions attitude. In a relatively short period of but we labelled four as the top behaviors of dollars into creating ways of stealing time, others have their heads down and needing swift decisive action in order to people’s time and attention while arms folded just like the downer. protect teammates: influencing human behavior. Depending When there’s a Slacker in the room, • HENIs (Hoarder of Information, on the study you read, people are the group quickly picks up on the Emotional, Narcissistic, Impatient) interrupted by their phones between vibe. They tend to get their work done • LALAs (Low Attention, 90-160 times per day. This is not healthy faster but do half-assed jobs. What’s Low Absorption) in any arena, let alone on a team, but it interesting is that they end up believing shows how powerful social tech tactics • Smiling Assassins they are doing good work when in fact, have become. • Entitled it is not good work at all. They simply Social tech is so good at what they do pick up on the bad attitude and their The HENI is that person who that many people cannot even drive a insufficient work ends up hurting the hoards information, is highly car without checking their devices. So team. emotional, narcissistic and impatient. many people have fallen victim to social These behaviors by themselves are tech tactics that distracted driving laws Felp’s experiment also found that when manageable, and at times can be found had to be put in place in order to keep strong teammates lead engagements, in any one of us, but together they are a people alive. Even car manufacturers deflect negativity and keep others destructive cancer that needs to be cut have started building lane automation to engaged, the harmful behavior was out from any team. keep drivers in their lanes. (Let that sink mitigated. These are the types of people who in) An important thing to recognize here need to control the world around them LALAs are extremely susceptible to is that attributes like intelligence, talent, and are willing to make their teammates' social tech’s theft of time and attention. experience and other abilities you find on lives more difficult in order to maintain Just like distracted driving, an effective resumes matter much less than people’s their own comfort. They will consistently way to protect teammates from LALAs is attitudes and interactions. It is not what inconvenience others just so they can to mandate and educate. people do...it is how they interact that is get what they want while refusing to most important. Mandates command a healthy use learn about and empathize with other When teammates are aware of of devices and online content while perspectives. distracting attitudes they bring into education informs of the risks to mission, The LALA is that person who willfully self and the team so teammates can action, they can put effort into a healthier invests low attention to teammates and make healthier decisions on their own. mindset that helps them be their best tasks and fails to stay in step with the while maintaining an environment that Smiling Assassins are those who team. They have a disregard for mission, helps others be their best. are nice in front of you but gossip self and team and tend to spend their and undermine you in secrecy. While time on things that have little to no value Category 2 of 3: to anyone. everyone deserves a chance to improve their behaviors, this type of behavior Destructive Behaviors Every working hour that a teammate should be considered a one strike you’re Cutting these people from the team invests into ‘low attention and low out violation. is usually an easy decision as they are absorption’ re-distributes workload Entitled are those who believe so toxic to the team. The challenge with onto other teammates while the lack of oneself to be deserving of special these people is when they are owners, attention to detail often results in errors accommodation. Entitled behavior is family, friends or key talent such as that require other teammates to repair difficult to change but not impossible. At CFOs, controllers or top salespeople. later. Plexxis, we use a macro/micro empathy In that scenario where the destructive LALAs are not to be confused with test to help make decisions on personal behavior is from an owner, friend, family neurodiversity. Those with conditions accommodations. When someone has member or key talent, leaders can lack such as ADHD or dyslexia do not choose a personal ‘micro’ request, we test to the courage to protect the team. This to pay less attention while in action and see if it fits and helps the team ‘macro’ lack of courage comes at a great cost. when provided the right environment, mission. If the macro and micro fit, the It may help those in this scenario to they can be among the highest accommodation is considered. know that this scenario is the leader’s performing and most caring teammates. biggest opportunity to show the team LALAs choose to give their attention Category 3 of 3: how important they are. The single away to other things that result in harm courageous act of cutting seemingly to teammates, the mission and even their Incompatible Behaviors indispensable people who are toxic can own heath. These behaviors are extremely reset an entire team on an incredible challenging to avoid in today’s Today’s biggest threat in relation to path. environment as they can be great LALAs are online distractions. Social 18 F E B R U A R Y 2 0 2 1 T H E C O N T R A C T O R ’ S C O M P A S S
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