What’s Most Important as You Consider Doing a Construction Project?

April 16, 2022 by Mark Eastman

Isn’t That a Question That Everyone Would Like an Answer To?

Whether doing a construction project yourself or hiring it done, there are some questions you’ll need answered. These will include things like…

What is the problem(s) or issue(s) that need addressed?

It may be as simple as a door not latching or a window sticking

Maybe it’s some damage or wear i.e., rotten floor framing or water damaged window sash.

Could be the need of something to make life easier i.e., a ramp for a wheelchair, or an enlarged shower with a bench to make it easier for someone with physical restrictions.

Might be needing more space for a growing family i.e., a second bathroom, extra bedroom, or larger kitchen.

Possibly it’s a combination i.e., your existing deck is in bad shape and didn’t get used much because of the sun in the afternoon so a covered deck to replace the existing one.

These questions are the starting point of a construction project.

The question about these questions, is where do you get the answers?

With the ease of access to information on the internet, people use this as their go to professional. The problem with this is, more often than not, that information is generic…and your project isn’t.

Every construction project is specific and unique.

With the exception of cookie cutter new construction, which is like going to a car lot and buying an already built house. Which there’s nothing wrong with but is not what most construction projects are.

I’m currently working with multiple customers asking the questions listed above. Let me give you some examples of why you need someone to help you find the solutions to your specific question.

A few weeks ago, I wrote about a project where a customer was looking for a contractor to repair some floor/wall framing damage and couldn’t find one locally. Currently we’re working to find the best solution. They probably wouldn’t find a solution to this specific issue on the internet.

Another example of the need for having a professional’s help is a window project that I was asked about.

This customer had a window that was put in in the early ‘90s and the bottom frame of the wood sash is rotting. They contacted the manufacturer’s retail store and met with a sales representative. The rep. told the customer that the problem was hail damage and all the windows needed replaced.

The customer received a quote for over $36,000 to replace these windows.

Having done other work for this customer before, they asked my opinion.

I agreed to give the customer a proposal for replacing the windows using the same windows previously quoted. My price was almost $10,000 less for the same work with the same windows.

This was before I even went to look at the project.

Having installed a lot of these windows over my career, I found it hard to believe that all of them needed to be replaced. So, I scheduled a meeting to look at the project.

After looking at it, I determined that of the thirteen windows originally quoted…only one needed replaced. All the others needed was some interior wood refinishing.

I haven’t got the proposal for this completed yet, but it’s going to be considerably less than $36,000. (I’ll let you know what it is, once it’s done)

This was a simple one size fit’s all solution that did not have the customer’s best interest at heart.

It takes experience, knowledge and a desire to help the customer find the best solution. To go beyond one size fits all.

The problem is…I can’t do this for everyone. There’s not enough of me to go around.

Just like a construction problem…

I’ll keep looking for the solution.

What is a Construction Scope of Work and Why Do You Need One?

April 3, 2021 by Mark Eastman

Because It’s Critical to Clear Communication, Whether You’re the Contractor or the Customer.

Last week Gene explained to John what project information needed to be gathered…

Project info (customer name, mailing address, project address if different than mailing, phone number, email address, project overview, budget, project deadline, any other relevant information that you need)
Measurements and dimensions, existing and new
Building materials, existing and new
Pictures of pertinent areas and existing construction
Customer’s design ideas and finishes

Overlooking or forgetting something is a sure way to lose money when doing a construction project.

This week they’re going to take the information gathered and turn it in to a scope of work. This will be the foundational form of communication between everyone involved in the process, i.e., customer, contractor, sub-contractors, employees, etc.

As they get started this week’s meeting Gene asks John if he had an opportunity to use the Bid Sheet this past week and if so, how it worked.

“Yes.” said John. “It was a little awkward in the beginning. By the time I was finished gathering the project information I was glad I had it, because there were a couple of things that it reminded me to do.”

Gene replied, “That’s great. Do you have any questions?” Not yet.” said John. Gene smiled, “You will before we’re done.”

Okay. Did you bring it with you? Asked Gene. “I did.” said John, “I’ve got it on my laptop.” Gene told him to open it up and follow along. “Today we’re going to work on the most important part of communication between contractor and customer.

The Scope of Work

What is a Scope of Work?

A Scope of Work clearly defines and explains the work to be done. It should describe what is included in each specific task in terminology that both the customer and the contractor understand. A scope of work describes the work to be done on a project, who is responsible for completing the work, how the work must be performed (techniques used), and what materials will be used. It helps in the smooth operation of a project, minimizing situations leading to disputes. It is the first step to building a mutually beneficial relationship between a contractor and customer.

Communication with the customer needs be simple and direct while explaining clearly and thoroughly.

After having gathered the information needed for the project using the Bid Sheet, write out in a few sentences, or less, of what each specific task is going to consist of. Explaining what you’re going to do in a way that a person with little or no construction knowledge can understand. Include as much detail and specifics as is needed to be clear on what is or is not included as a part of the project.

Once this process has been finished for each task included in the project, you have a Scope of Work ready to be transferred to a blank Proposal template.

Here’s an example of a Scope of Work using the information from the Bid Sheet we worked on last week.”

As they’re wrapping up this week’s training Gene tells John. “Next week we’ll get into the pricing of a project.”

The real value of this Proposal System is in the pricing.

Previous posts in this series –

What is “business clarity” and how do you find it?

Learning How to Get a Construction Project Started Out Right

It’s Time for the First Meeting

Being Aware of the Common Bid Mistakes is the Best Way to Avoid Them

Constructing a Building is Better with a Plan, a Proposal is No Different

A Good Construction Proposal Starts by Asking the Right Questions

Learning How to Get a Construction Project Started Out Right

November 15, 2022April 19, 2020 by Mark Eastman

John Gets Excited About His First Meeting with Gene

As usual John had been on the go, nonstop, trying to keep construction projects moving forward, collecting money, paying bills, meeting with new potential customers when he realized, he had six projects that needed proposals. As he thought about this, he realized it had been more than two weeks since he had talked with Gene about how to do proposals.

He picked up the phone and dialed Gene’s number. “Hey Gene, this is John, have you got a few minutes?” “Sure,” Gene said, “What can I do for you?” “I just realized that I’ve got six projects that need priced. This reminded me of our conversation a few weeks back when you offered to go through your bidding process with me. Does that offer still stand?”

“Sure,” said Gene, “when would you like to meet?” John thought for a minute realizing he wasn’t sure when he would have time to squeeze this in. “I don’t know Gene, as usual I’m booked pretty full.” Gene waited for a minute and then said, “I understand. Think back to what you said in our previous conversation. Do you remember how frustrated you were?”

“Your situation isn’t going to change until YOU decide to make it change.”

John rubbed his forehead. He knew Gene was right. “Okay”, John said, “I can squeeze in an hour or two Saturday. Would that work for you?” Gene shook his head and smiled, remembering what it was like to be where John is.

Then he said, “John I appreciate where you are, but the process of getting from where you are, to where I am, isn’t going to happen in an hour or two. I’ve been doing it for forty years. If you can commit to four hours Saturday, I will be glad to meet with you.”

“Realize, YOU are the only one that has the power to make this change.”

John sat there with all the things that needed done, bouncing around in his head. Then he thought about how tired he was of feeling out of control. Once again, he knew his mentor was right. Gene had taught him so much about construction and how to build things.

Now it was time to learn about the business part of construction.

“Okay,” said John, “How about we meet at noon on Saturday and I’ll bring the pizza.” Gene said, “That sounds great and we can get started, but that’s all this meeting will be…getting started. Like I said before I’ve being doing this for years. It takes work, it takes commitment, but the end result is worth it.”

“It’s more than just learning. It’s a lifestyle change.”

“John, most people in construction never learned the business side of operating a business. This is where they struggle until they get to a point where they give up. Bring an open mind and an open heart and be ready to have them both filled.”

“Nothing is going to change until you take action and do something.”

Now John was getting excited and looking forward to meeting with his friend and mentor and making some changes in his life. He was beginning to realize that a getting a construction project started out right, begins long before any construction takes place.

What is “Construction Clarity” and How Do I Find It?

September 19, 2020April 6, 2020 by Mark Eastman

Lack of Understanding is a Sure Way to Ruin a Construction Dream

It was Saturday morning and Jane was cutting some cloth for the dress she was making for her niece, when there was a knock at the door. She was surprised to find her friend and neighbor Connie when she answered it.

Connie said, “I was just out for a walk and thought I would stop by to see how things were going.” Jane had just made a pot of coffee, so she invited Connie in for a cup and a visit.

She offered Connie a chair at the table as she moved the material out of the way. As she brought the coffee to the table she said, “I sure wish I had a better place to do my sewing. The way it is now, I do my measuring, cutting and pinning here at the dining table. Then I carry it all downstairs to the sewing machine.”

“It sure would be nice if I had a separate room here on the main floor where I could do it all. For years I’ve dreamed of having a sewing room added onto the house. I just don’t have a clue where to even start. Hey, you had a room added on a few years ago, maybe I should get your contactor’s info and check into it?”

“Oh”, Connie said, “I don’t know if having a room built on is such a good idea. That construction project was the worst experience of my life!”

“What do you mean,” asked Jane. “Like you”, said Connie, “We had this dream project in mind…it turned out to be a nightmare. We had no idea what we were getting ourselves into. The contractor we hired was the brother-in-law of someone my husband works with. I just wish we’d never done it.”

“What happened that made it so bad?”, Jane asked. Then Connie started in, “You name it, if it could go wrong, it did. We were excited when we first met with the contractor and discussed our ideas. We had this vision of our beautiful new master bathroom. Shortly after that the problems began.”

“It started with waiting and waiting to get a price. Then the bid we got was a short brief description with a price that seemed kind of high. My husband I talked it over, we really want this new bathroom, so we decided to go ahead. Then the real problems started.”

“There was little to no communication from the contractor, we never knew when or if he was going to be there working. We never knew what we were being billed for. He would ask us questions using terminology that we didn’t understand. There were tools and construction material scattered everywhere throughout the project. Sometimes he was gone for weeks and nothing was done. His last bill pushed the project over our planned budget by 30%”, he said “it was the additional work we had him do.”

“The worst part of the whole thing…the finished project wasn’t anything like what our dream had been.

Jane sat there for a few minutes with a puzzled look on her face. Then she looked up at Connie, “Wow, I never knew. Maybe you’re right. Maybe my sewing situation as it is, isn’t so bad after all.”

A few days later Jane went to a book club meeting at Lucy’s house. When she pulled up in the drive, she noticed the new addition to Lucy’s house. Jane immediately started feeling bad about what Lucy had to go through.

After Lucy invited her in, Jane said, “I’m sorry that you had to go through this terrible construction ordeal.” Lucy asked her what she was talking about. Jane replied, “I was visiting with a neighbor Saturday and she told me how terrible construction projects are.”

With a puzzled look on her face Lucy said,

“I’m not sure what hers was like, but this has been the best experience of my life!”

“It’s like watching my dream turn into reality. Would you like to see it?”, Lucy asked. “Sure,” said Jane. They went into the addition and Jane was amazed. From the outside she assumed it was finished, inside she could see that it wasn’t.

Jane asked, “I assume the construction crew has taken a break between processes and haven’t been here for a while?” “Why would you assume that?”, asked Lucy. Because, Jane said, “According to Connie, builder’s leave everything scattered around, and everything is clean and organized here.” Lucy said, “No, the crew was here today, and they’ll be back again tomorrow. It’s been like this every day.”

Now Jane was really confused. What was the difference between these two projects? Maybe this one would still turn out to be a bad experience before it’s finished.

“Who’s doing your project?”, asked Jane. Lucy answered, “Gene with XYZ Construction. He’s been great to work with.” Then Jane had an idea and thinking out loud, “I’ve been thinking about adding on a sewing room. Would you be willing to visit with me more about Gene and your project?”

“Sure”, answered Lucy, “They’re scheduled to be done in a few weeks. Let’s set a date and we can meet here. That will give you a chance to see the finished project.”

Jane was looking forward to meeting with Lucy and finding out more about Gene and XYZ Construction.

How To Put The Pieces Of The Construction Proposal Together

November 15, 2022December 22, 2019 by Mark Eastman

The Last Piece Is Always the Most Fun

If you’ve ever done a jigsaw puzzle, you know how frustrating it is to get to the last piece…and you can’t find it anywhere. This is the same frustration a customer feels when they don’t have the full picture of what is to be included in their construction project.

Giving the customer a complete and thorough proposal gives them the full picture.

Doing puzzles growing up I remember when getting near the end of a puzzle the level of excitement would begin to amp up. In the accelerated push to get it finished more people would get involved, in the rush, often a piece would get lost. Finding the missing piece and putting it in made the picture complete.

There’s a real sense of accomplishment when the last piece of the puzzle is put in place.

It’s the same finishing a proposal…the final piece is now in place. The hard work of gathering the info, preparing the Scope of Work, and pricing are done. All that’s left is putting them together to provide a clear picture for the customer.

Jane Smith’s laundry/sewing room project.

Start with the Proposal template.

Insert the customer information in the open areas at the top of the first page as it pertains to the project.

To: This is the name of the person who requested the proposal or is responsible for the project organization.

Re: This is a name describing this specific construction project.

For: This is the party or organization for who the project is going to be done for.

At: This is the address of where the construction project is going to be performed.

Copy and paste the description of the work to be performed and material to be supplied from the Bid Sheet on to the Proposal template. (See below)

Next, take the prices from the Worksheet for each individual described action on the Proposal and place it on the right side of the page. At the end of each section put the total price for that section. (See below)

Now that the description of the work to be performed, the materials to be used, the prices for each action and the totals of each section have been placed on the Proposal template, it’s time for the project to be totaled. Complete the Proposal by defining the payment schedule, determining the date in which the Proposal will expire and the duration of time to complete the project. The only thing left is signing of the document.

Once the proposal is signed, I recommend following up with a Contract. Even though the signed Proposal serves as a legal and binding document, there is nothing in the Proposal about when the project will be started. The Contract also includes more detailed customer information, a list of any referenced documents, a place for construction funding information, property specifics and legal terms and conditions.

We’ll look at a Contract in the next post.

If you’ve found this series on the “Blueprint for Building a Better Proposal” helpful and you or someone you know would be interested in the templates for Building a Better Proposal, keep checking back. In the next few weeks we have a big announcement coming.

How To Price A Construction Project Proposal

November 15, 2022December 16, 2019 by Mark Eastman

Now It’s Time to Give the Project A Dollar Amount

The next step in the “Blueprint for Building a Better Proposal” is to determine the price for the project. We’ve talked a lot about the importance of communication to provide a clear description of the work to be performed. Now we’ll go through the process of determining consistent and accurate prices.

Poor communication will cause heartache, poor pricing will cost you money.

We’ve gathered the necessary information and prepared the Scope of Work so let’s put some numbers to the project.

Here we’ll combine the next two steps in the process; determining what pricing is needed for each specific construction tasks to be performed and quantities pertaining to each.

STEP 3 – PRICING THE PROJECT

This process uses two different Excel spreadsheets:

The Worksheet –
An Excel spreadsheet with all the construction sections and tasks listed out with optional overhead and profit markup formulas inserted in the appropriate locations.

The Data Base –
An Excel spreadsheet with prices for material and labor for a wide variety of specific construction tasks.

Based on the descriptions on the Bid Sheet, content from the Data Base will be copied and pasted into the correlating cells on the Worksheet.

EXAMPLE PROJECT:

Using Jane Smith’s Scope of Work for her laundry/sewing room addition we’ll determine the right information that needs to be copied from the Data Base and pasted to the Worksheet. Reference the Smith, Scope of Work here.

Questions need to be answered like:

Which tasks need to be inserted into the Worksheet? Many of the tasks have options; which to use, will depend on the specifics of the project.

For example; How is the excavation, trenching and landscaping going to be done…with a skid loader, mini excavator, by hand or a combination?

Smith, Addition – Scope of Work, Sitework Section:

Data Base:
Copy pertinent cells to be pasted to the worksheet. (highlighted cells)

Smith Addition – Worksheet, Sitework Section:
Paste copied cells in worksheet template. (highlighted cells)

More questions that need to be answered:
Is the footing going to be formed with wood or poured in the ditch without any forms?

Smith, Addition – Scope of Work, Foundation Section:

Data Base:
Copy pertinent cells to be pasted to the worksheet. (highlighted cells)

Smith Addition – Worksheet, Foundation Section:

Paste copied cells in worksheet template. (highlighted cells)

After the pertinent information from the Data Base has been placed on the Worksheet it’s time to fill in the specific quantities. This will then provide the prices for the work to be done.

STEP 4 – QUANTITIES

On the Worksheet you will fill in the quantity needed to do the work on that line item. This may be lineal feet, square feet, square yards, cubic feet, cubic yards or numbers of pieces. Once this is completed you will now have prices for the Proposal.

Notice the highlighted cells in this spreadsheet. These are adjustments made due to the attributes of specific tasks on specific projects. In the case of this project the small size and location of the work in the back yard require some additional work and therefore additional cost.

I know this is a lot of content and information but it’s not as scary as it appears at first glance. The question that you need to ask yourself…

Do I want to be intentional at serving the customer’s needs at a profit or just guess and take a chance?

The next step is to bring all the pieces together in a thorough and accurate proposal that will give the customer a clear picture of what they’re getting and how much it’s going to cost. Check back next week for this part of the process.

How To Price A Construction Project Proposal

November 18, 2022December 16, 2019 by Mark Eastman

Now It’s Time to Give the Project A Dollar Amount

Poor communication will cause heartache, poor pricing will cost you money.

We’ve gathered the necessary information and prepared the Scope of Work so let’s put some numbers to the project.

Here we’ll combine the next two steps in the process; determining what pricing is needed for each specific construction tasks to be performed and quantities pertaining to each.