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Information, Instruction, and Implementation…This is Where the Real Work is Done

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Do You Think the Construction Business of Your Dreams is Worth it?

Last week we discussed how hard it is to keep a construction company from failing. If you have a construction company, this all-too-common outcome doesn’t have to be yours.

We’ve talked about how building a dream construction business starts with BEING AWARE of the issues construction companies face. The next thing is UNDERSTANDING these issues, which starts with asking questions and finding answers.

One of the biggest issues in construction is that most people in this industry are willing to do the hard physical work of building a building but will work even harder to avoid the work of building the business.

Building the business of your dreams is a choice.

Our lives are a string of choices, one after another, after another, after another, after another. These choices are the things that direct our paths through life and business.

We need to be aware of these choices and understand how they affect who we are. Understanding this leads us to gathering the information needed for building a business.

The INFORMATION that we consume determines who we will be.

Information comes from what we read, listen to, watch, and who we surround ourselves with. This is true for every aspect of our lives including our businesses.

Information is knowledge obtained through learning, investigating, experiences or study. It is the answers to questions that we ask. Knowing what’s needed to build a successful business begins with having the right information.

INSTRUCTION is an efficient way to consume information.

Instruction is advice or direction about how to do or use something. It happens when someone with more experience and knowledge teaches or trains others.

This lack of knowledge and understanding is why most people in construction don’t have business systems and tools. Sure, it can be learned without instruction over time, but why wait? Instruction is a more effective way to learn how to do or use things.

Don’t spend years by yourself in the “School of Hard Knocks” when is much quicker and less expensive to get instruction from someone who’s already graduated.

IMPLEMENTATION is making instruction and information real.

Implementation is the act of putting things learned into action or to use. This is where knowledge becomes reality. It’s where the rubber meets the road.

This is the scary part.

What if it doesn’t work right the first time? – It won’t.

What if I forget something? – You will.

What if it feels overwhelming? – It will.

Without implementing the things you’ve learned, you gain nothing.

This fear of failure is why most people choose to do nothing. They will just keep doing it the way they always have, knowing there’s a better way but just like the GEICO commercial, they’ll hide behind the chainsaws rather than getting in the running car.

Your construction business is worth the effort needed to gather the INFORMATION, get some INSTRUCTION, and IMPLEMENT what you learn.

If you would like some information about tools to help you build the construction business of your dreams, check out the 5-step Business BUILDing Process. Or if you need some tools for building that dream business, check out the Business BUILDing Toolbox. If you have any questions, you can schedule a free 30-minute consultation here!

Why is it so Hard for Construction Companies to Stay in Business?

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It’s Really Not That Hard…It Just Requires a Change of Perspective

It’s crazy the number of business that start and fail. Millions of businesses get started each year, but only a small portion survive. Why is it that 90% of all businesses fail? An article by Luisa Zhou is full of research-backed business failure statistics.

  • 18.4% fail within the first year
  • 49.7% fail within the first 5 years
  • 65.6% fail within the first 10 years
  • Only 25% make it beyond 15 years

There are countless reasons that businesses fail, but just because other businesses fail, doesn’t mean yours will too. Being aware of and understanding these statistics increases your chance of survival.

You can’t succeed if you don’t try.

If your dream is to own a successful construction business, you need to do your homework and then commit to it. Construction businesses do have a high failure rate, but that’s not to say you should avoid the construction business.

It just means you need to be aware and get prepared.

Listed below are five small business types with notoriously high failure rates.

  1. Restaurants – Independent restaurants have a failure rate of over 60% at the 10-year mark. The key to success is the ability to raise capital when needed. If a business owner cannot do that, there’s not much left but to close the doors.
  • Retail stores – Another business with intense competition is retail stores. Not only do you have to contend with other brick-and-mortar stores, but you also have online businesses undercutting your prices. Like independently owned restaurants, retail stores have a failure rate of over 60% at the 10-year mark.
  • Direct sales – Yes, it’s your own business, but if a friend asks you to become part of a multi-level marketing (MLM) business, say no. What you’ll hear are success stories. You won’t hear that, like a pyramid scheme, 99% of direct sales reps suffer significant financial loss. It’s the people at the top and the person who recruits you who makes money. 
  • Construction – Starting your own construction business is a tough gig. Construction businesses also have a failure rate north of 60% at the 10-year mark.

Not only do you have to be good at your craft, but you have to become a full-time salesperson, accountant, administrator, bookkeeper, and part-time counselor.

If you have a passion for building and offering unique touches that buyers can’t get from another builder, you’re off to a good start. The thing that’s usually missing is a business plan and the right business tools.

  • Insurance sales – Insurance agents face the same challenges of construction…wearing too many hats. They must be a master of administrative work, sales, and an ever-changing insurance scene.

If you’ve been in construction for any length of time, or know someone who has, you’ve become aware of how hard it can be to operate a successful construction company. Understanding the things that are needed to achieve this is one of the BUILDing blocks in a solid business foundation.

NOW WHAT? Now you need to change your perspective.

Perspective is a particular way of looking at something. This doesn’t mean it’s right or the only way. It just means that it’s our perspective.

Rather than assuming you’re the only one in construction dealing with issues you need to understand that this is not the case. These struggles are common across the construction industry. But changing your perspective is just the beginning.

Real change requires action. You’re going to have to do something.

So, what is the something that you need to do?

You need to lay the next block to BUILD the foundation of your business. This block is INFORMATION, INSTRUCTION, and IMPLEMENTATION. This is the third block in our 5-step Business BUILDing Process. Check back next week, and we’ll take a hammer to this building block to see what it’s made of.

It can be really frustrating trying to figure out how to build a successful construction business. But you don’t have to do it by yourself.

After owning and operating a construction business for more than forty years, I’ve developed business tools and systems that we are now making available to construction companies to give you an advantage over the competition.

If you would like to learn more about BUILDing a successful construction business, you can schedule a free 30-minute consultation here.

Why Understanding is Critical to BUILDing a Successful Construction Business

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Because Your Company is Too Important to Just Roll the Dice

Why is it that people operating construction companies are willing to gamble with their business? This random hit and miss business model is an all-too-common practice in the construction industry.

Somewhere along the way as we grow into the routine of life and business, we stop asking questions.

As kids we’re expected to ask questions. In school we’re taught to ask the five Ws (who, what, when, where and why) and how. These questions are considered basic to information gathering.

UNDERSTANDING starts with asking questions.

Asking questions is the first step to understanding success. The questions are more important than the answers. Asking questions is necessary to break out of routines. Questions cause us to dig deeper and ask more questions. If we don’t ask questions, we will stay stuck in the mundane habits of doing the same old things over and over hoping for a different outcome.

It’s like people in horror movies. If you’ve ever watched a horror movie then you’ve seen this. Teenagers are in a dark scary place and instead of getting out when they have the opportunity, they continue to hide in a basement, an attic, a cemetery, etc. The GIECO “horror movie” commercial is a great example of this.

If you don’t want your business to be ‘chopped up by a chainsaw’ you need to BE AWARE and start asking questions.

Asking questions leads to UNDERSTANDING.

Like any tool, if you don’t understand how to use it, what its purpose is, and how it works it won’t be any help to you when you’re doing construction. The same is true for tools used to build a successful construction business.

  • Sales tools like Proposals and Contracts
  • Production tools like Change Orders and Payment Applications
  • Financial tools like Job List and Savings Account Transfer Sheet

Understanding how these tools work, their purpose, and how to use them can be just what you need to build that business of your dreams.

Understanding is the mental grasp or comprehending of something. It is the knowledge about a situation, how something works or what it means. Understanding is also an agreement between two or more people. It is the sharing of thoughts and ideas of others and willingness to listen with an open mind. This kind of understanding leads to trust.

If you’ve been in construction for very long, you’re aware of problems like –

  • Balancing construction projects and paperwork
  • Feeling like your business is out of control
  • Keeping projects on schedule
  • No money for bills, taxes, or emergencies
  • Keeping projects within budget
  • Disappointed or upset customers
  • Communication breakdowns

You can either ignore these issues and keep doing things the way you have, or you can start asking questions and figure out what to do about them.

Questions like why…

  • Why should construction contractors do proposals? –

This question is the one that baffles me as much as any. How can contractors expect customers or production crews to know what work is going to be done and what it’s going to cost without some clear communication? I don’t think you would buy a truck without knowing what you were getting. I know I would be disappointed if I ordered a new $70,000 truck and when I got it, it was a 1999 ½ ton pickup missing a wheel and the driver’s door.

  • Why don’t contractors do proposals? –

The most common answer to this question is that they simply don’t know how. This is something that just isn’t taught. Most contractors start out doing construction, not paperwork. They figure out some guesstimation process and then wonder why customers are upset when they get a bill that is higher than they expected for less work.

  • Why does this customer want to do this construction project?

This should be the primary question that a contractor gets the answer to. It is more important than what. The “what” answer has a “why” answer behind it. The why question doesn’t have to be asked directly, but regardless, needs to be answered. The why is the foundation for the customer’s dream. A foundation is critical to building construction projects and dreams.

  • Why do we do the same things over and over expecting different results?

We all do this to some degree. Why? Why do we continue to repeat things thinking it will be different this time? We shouldn’t do things just because… “we’ve always done it this way”. The more we walk back and forth in a rut, the deeper it gets and the harder it is to get out. I heard it said that a rut is just a grave with both ends kicked out. Stop walking and determine if this is what you want and if it’s the best plan. If not do something different.

These questions are a starting point to understanding how you can BUILD a better construction business.

Like so many things out there UNDERSTANDING can be a scary thing. It may take us outside of our comfort zone and we don’t like that. We would prefer to be like the people in scary movies…and just go hide behind the chainsaws.

At Solution Building we’ve developed a 5-step BUILDing process to make stepping out of your comfort zone a little less scary. If you would like some help knowing which questions to ask or answering questions you have, schedule a free 30-minute consultation here.

What’s the Number One Problem Construction Companies Struggle With?

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It Would Be So Much Easier If There Was Only One Problem to Deal With

The construction industry is a complicated business and is only getting more so in today’s fast-paced world. If you’re working in construction, or know someone who is, you know how overwhelming it can be trying to keep up with the business.

As complicated and overwhelming as the physical on-site construction portion is, the business part is equally daunting. This includes things like budgeting, scheduling, communication, labor issues, planning, and cash flow to mention a few.

While researching the number one problem construction companies faced, it was confirmed that there is more than one problem, and they are common across the industry. Trying to ensure that projects stay on schedule, within budget, compliant with safety regulations, and running smoothly is difficult.

Wouldn’t it be great if there was only one problem?

Blackridge Research and Consulting is a market research and consulting organization. Their 2023 blog about the Major Challenges Facing the Construction Industry confirms what I’ve been saying for years.

Here are seven major construction industry problems –

  • Cost overruns – This is one of the top construction industry problems. This is when a project exceeds its pre-planned budget. A McKinsey study estimates that 98% of large construction projects deal with cost overruns of more than 30%. This is often caused by poor cost estimates during the planning phase, design change requests, and payment delays. This results in lower profit margins, material shortages due to running out of funds, damage to the company’s reputation, and delays.
  • Delays – The same McKinsey study also shows that 77% of construction projects are at least 40% late. Some factors that contribute to this can’t be controlled, i.e., weather, labor shortages, and equipment failures. But there are as many or more factors that can be controlled and prevented, including scheduling issues, project conflicts, and incorrect data. One of the best ways to reduce delays is through the use of technology but the industry’s willingness to adapt is a problem.
  • Push back on new technology – This is one of the biggest problems in the construction industry. Its hesitancy to adopt new systems and processes that could make their companies more efficient is a problem. Even when construction companies acknowledge that there are solutions that they could benefit from they tend to stick to the mantra, “This is the way we’ve always done it”.
  • Poor communication – One of the most prevalent construction issues is poor communication. Since construction projects require multiple people during the planning and construction, effective information exchange is crucial for the project’s success. Oftentimes, there’s a disconnect between the office and on-site workers. Poor communication is linked to a high percentage of construction problems resulting in complications such as unrealistic expectations and important tasks being overlooked. Keeping everyone in the loop by sharing obstacles and daily progress is a great way to avoid conflicts. Documented communication helps in cases where conflicts do arise.
  • Poor planning and budgeting – When projects aren’t planned well it leads to unachievable goals that can result in construction issues like stagnant productivity. It helps to break larger goals down into smaller and more attainable ones with daily objectives. In terms of budgeting, incorrect estimates can disrupt progress and can cause projects to be delayed or dropped altogether. It can also lead to a reduction in company profit.
  • Lack of organization and poor document management – This is another prevalent problem in the construction industry. Construction involves dealing with a lot of information, from contracts to material orders to receipts to insurance certificates. Document management is not something that people in construction typically like doing. Not doing it is inefficient and creates room for mistakes. Having a system that is digital allows for better access and centralizing important information.
  • Cash flow issues – Problems with cash flow can cause construction challenges. Having a steady stream of funds is crucial to paying employees, subcontractors, vendors, and suppliers on time. When payments fall behind, it further disrupts cash flow, halting project progress and causing delays. The reason so many construction firms struggle with managing a project’s funding is that they rely on outdated systems. Having more modern solutions can ensure that all payments are made and accounted for.

Dealing with these problems is the reason I developed the business tools that I use at Timber Creek Construction every day. Seeing other construction companies struggling with the problems is the reason I started writing about them on Solution Building.

Now we’re going to make these tools available to construction companies that are tired of feeling trapped with no way out.

We plan to open our digital Business Building Toolbox next week. These tools and training are designed to help construction companies build the business that they always dreamed of. We will continue to add new tools and training in the future. If you would like more information about these tools and training and how they can help your construction company with these problems as well as others, schedule a free 30-minute consultation here.

Getting Signed Construction Proposals, What’s the Best Number for You?

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How to Know What Your Number Is and What You Should Do with It

I have been reading Simon Sinek’s book Start with Why this past week. In it, he discusses how customers will do business with companies and not even really know why. He says that it often has more to do with trust than price.

This is where word of mouth marketing comes in. If someone you trust shares about the great experience that they had with a company, you’re more likely to do business with that company.

This got me to thinking about the closing ratio of our proposals. Our closing rate has almost always been higher than industry standards. This is in large part due to many of our projects either being

repeat customers or someone that has been referred to us by one of our past satisfied customers. It does not seem to be this way for most construction companies.

With the hit and miss way of doing business in the construction industry, it’s amazing to me that there are any construction companies out there at all.

Another thing to be aware of and something that is often overlooked is when our closing ratio gets too high. Selling a lot of jobs is a good thing, but when this number gets too high, it’s a good indication that your pricing is too low.

Is your bid-hit ratio ok?

When asked the questions… “Do you know what your bid-hit ratio is? Do you keep track of it? How do you use it?” Most contractors have no idea. Well over 50 percent don’t have a clue what their ratio is. Less than 25 percent know and track theirs.

This is like driving a car blindfolded — trying to go somewhere without a clue where you are headed!

In order to determine how many jobs to bid on and what type of jobs to bid on, you must know your bid-hit ratio. Track it regularly. Track it for all projects you bid on. Track it by customer.

Having a system will help you determine which jobs to bid on and which jobs not to bid on. It will also help you determine when to eliminate a project type or customer from your plate and seek out better opportunities to invest your estimating dollars.

Knowing the percentage of proposals that get signed can be a critical piece of information and may determine whether your company will stay in business or not.

Most small to medium sized construction companies run their businesses by just throwing a dart and hoping it hits a dart board. They have no real idea of what they’re doing.

I would bet my annual salary that most construction companies have no idea of what percentage of their proposals turn in to actual construction projects. This is vital information to have for building a profitable business.

This is why we have a Job List tool for tracking this information in our construction business. This tool will do a lot more than just tracking the percentage of signed proposals.

You can find out more about this tool here –

I realize that the whole business thing can be daunting and overwhelming, but it doesn’t have to be.

The Job List tool, as well as, the Proposal, Contract, Change Order, Payment Application, and Saving Account Transfer tools are some of the tools that will be coming soon in our Business Building Toolbox.

If you have questions about the Business Building Tools and if they would be a good fit for your construction company, you can schedule a free 30-minute construction company consultation here.

Poor Communication is the Number One Reason for Disagreements, Part 2

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Written Communication is Really the Only Way to Avoid This Problem

I have written multiple times about communication and the problems that come from the lack of communication. Most of the time this has been focused on communication between construction contractors and customers. This is certainly a problem, but can also be a problem between general contractors and subs.

Whether it’s subcontractors or customers, the communication responsibility lies with the general contractor.

Verbal communication leaves too many things open to interpretation.

Several years ago, a partner and I were meeting with a customer early in the process of building a new home. The customer pointed out that the distance from the electric meter to the house was more than the 50’ allowance, as per the written proposal.

He asked if this was a problem. My partner told him that it wasn’t a problem. Guess what…

It was a problem.

The problem didn’t surface until later when the customer was billed for the additional 100’. After some “digging”, the communication breakdown was uncovered.

The customer asked, “if it was a problem”. What he really was asking was…”is it going to cost more?”. 

My partner’s response in reality was, “we can dig the additional 100’, but it will cost you three times as much as the 50’ allowance in the proposal”. But this isn’t what was said.

Neither of them intended nor expected this to be a problem. It was a simple matter of misunderstanding…a lack of communication.

Communication is, …the exchange of information and the expression of feelings that result in understanding.

Understanding is the tricky part.

Over the past few weeks, I’ve been reminded of the importance of communication with subcontractors as well as customers. When I had a situation where I hired a sub to do a bathroom remodel that I had never used.

He came with a couple of positive recommendations.

After talking with him on the phone, I sent him a scope of work and before and after drawings. He gave me a verbal price range over the phone. The high end of his price was in line with my budget.

I asked him if he would get me something in writing.

We met at the job site later that week on Friday and physically looked at the project. It so happened that he had a crew that could start the following Monday and have the job done ahead of schedule. This was important because the bathroom that was getting remodeled was the only one they had. Again, I asked for something in writing. Again, he assured me that his price was still good.

He showed up on time and things progressed on schedule. They got the demo done quickly and got the customer a shower back within a few days. Things were going well.

There also was some moisture damage that was unknown when we started. This meant I needed to give the customer a change order for this additional work. I called the sub to get a price. He said the way things were going, it should still be close to the high-end price he had given me previously.

I prepared a change order for the customer based on the extra work and felt that should be sufficient to cover the subcontractor.

When it was all said and done the subcontractor’s bill was almost $4,000 more than he told me or what I had budgeted. On top of that he was unwilling to negotiate a settlement somewhere in the middle.

Surprise! I should have gotten something in writing.

Looking back, I should have pushed back more and gotten something in writing. But I was looking out for the customers and the subs availability. The speed with which they said they could do the work swayed me to move forward without anything written down.

I know that small and midsized contractors don’t like to spend the time and effort to do paperwork.

I understand, it takes time. The question we should ask is this…

Is it better to spend the time communicating before the project starts or wait until there’s a problem and everybody’s upset?

I understand that details and information take time, but I think it’s essential to good communication.

I knew better and can’t blame anyone but myself for being in this situation.

Even though I had the tools I needed to avoid this situation I didn’t use them. If you don’t open the toolbox and get the tools out, they can’t help you build your company.

Most construction contractors don’t have the tools they need for building a better business. That’s why we’re in the process of filling up a toolbox with tools to help you build the construction company of your dreams.

Whether it’s proposals, contracts, change orders, progress payments, or having money to pay your taxes, there’s a tool for it. We also plan to offer instructions, coaching, and consulting to help you learn to use these tools.

If you have questions and would like to find out if these tools would be a good fit for you, you can schedule a free consultation here.

Poor communication is the number one reason for disagreements. Avoid disagreements by taking the time to get the tools needed to avoid costly miscommunication.

How to Build the Construction Company of Your Dreams

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It’s Like Building Anything…You Need a Plan and the Right Tools

Labor Day is coming up on Monday. It’s the only Monday holiday that I don’t work. Actually, there are only three holidays each year that I don’t work. Those being Christmas, New Years Day and Labor Day.

I celebrate Christmas because it is the day we honor our Savior’s birth. The other two are days that our family has celebrated together as far back as I can remember.

This sounds like I’m a workaholic. And yes, I’m a recovering workaholic, but…

It’s easy to be a workaholic when you love the work you do.

On the other hand, working a lot of long hours and not having anything to show for it can feel like drudgery. It’s like being stuck in a rut without a way out. I’ve heard it said that “A rut is just a grave with both ends kicked out.”

Owning and operating a construction company can feel this way. We get in a rut and don’t even realize where we are. Plodding back and forth going through the daily routines of operating the business, never looking up to see where we are or where we’re going. If we’re not careful the rut will get so deep that we’ll never get out.

Change can be scary; it might not work. We know our rut, and we like it. “We’ve always done it this way”, isn’t a very good plan for building a better business. Too many construction companies find themselves in ruts, and “rut thinking” doesn’t allow for building your dream business.

So how do you get out of that rut and build the business you always dreamed of?

When you started your construction business you had this vision of how things would be, and I’ll bet that it hasn’t turned out at all like what you expected. This is something that I’ve seen way too many construction companies struggle with.

I know what it feels like because I went through it too.

That’s why early on in my business when I became aware of these issues, I decided to do something about it. I wanted to get out of the rut.

I began researching the problems and studying alternatives. Then I began to understand what was needed to get out of the rut. This is when I started building and designing business building tools that I could use to build the business of my dreams.

If you’re like I was and started your construction company with a dream and no plan, you probably find yourself stuck in a rut. Building a business is like building anything…if you don’t have a plan, it probably won’t turn out well.

After I understood what was needed, I designed and built business tools to help me build that business that I had dreamed of.

If you would like to build the construction business of your dreams but don’t want to spend the time and energy making your own tools…I have good news. At Solution Building we’re going to be offering our Business BUILDing tools and training to help you get out of the rut quicker and easier.

If you’d like to get out of your rut, check out our tools and systems to help you build the business of your dreams. complete with the 5-step business BUILDing process for implementing and learning to use them.

Becoming aware of the rut you’re stuck in is the first step to building the construction company of your dreams.

Clarity of the Plan is Key to Knowing What to do and How to do it

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How an Operating System Can Help Your Construction Company Navigate the Business Fog

The past couple of weeks we’ve discussed how an operating system can help you build a successful business and a list of what should be included in a standard operating procedure. This week we’ll look at style and formatting ideas for putting together a plan for operating your company.

It takes thousands of pieces to construct a building. If these pieces aren’t put together in the right place and in the right order, the end project is not what was expected. It might even lead to the building collapsing.

This can be avoided with a clear plan and good communication.

The same is true for a business. There are thousands of pieces that need to be put together in the right place and in the right order if the company is going to survive and become successful.

You don’t want your business to collapse, do you?

A Standard Operating Procedure (SOP) is the current hot title for this document. I will agree that these three words do a pretty good job of summarizing what this is, but don’t want to get caught up in what it’s called. You can call it whatever you want.

Just like you can call it what you want, you can design it however you want. Here are some ideas that you might want to include in your operating system.

  • Determine the format – This can be as simple or as complex as you want it to be.
  • Gather the relevant stakeholders – When you start discussing the system you should include anyone who has a stake in the process.
  • Define the structure – Bigger companies will likely have a more formal structure and startups, or smaller companies may use a more informal process.
  • Determine the scope – Keep in mind that you should have a clearly defined scope. It may involve multiple areas and people but be sure to not lose focus on your goals.
  • Be consistent in style – This makes it easier for the person who’s going to be using it if it’s a clear consistent style throughout the whole document.
  • Include all steps of the process – Record all steps that are required to complete a certain process.
  • Choose the right metrics for measuring success – To understand if you’re achieving your target results, you need to determine what the key performance indicators are.
  • Test the process – To make sure that your system is good or to make any final edits and tweaks, ask some of the team who will be using it for their feedback.
  • Implement the process – Once you’ve completed the above steps, you’re ready to implement. Keep in mind that these procedures are dynamic and will change with time.
  • Plan for regular reviews and updates – Since the construction industry and your business processes are changing all the time, your standard operating procedures should too!

An SOP is not a document to be made and forgotten about. It’s a manual that people use daily. So…it must be reliable.

Revising your SOPs every 6 or 12 months is a must if you want to stay on top of any changes and keep on delivering the best possible results.

As the owner or operator of a construction company, your head probably feels like it’s going to explode with all the things you’re trying to keep track of and do. Wouldn’t it be great if you had some help doing some of those things?

The problem with this is…now you have to teach and train them, and either you or they are going to forget something. Wouldn’t it be nice if there was an operating manual that they could refer to?

There could be. You just have to decide if you want to continue doing things the way we’ve always done it, hit and miss way. Or use the better, clear plan that can be implemented by a new hire or used by the most experienced team member.

If you would like to discuss this more set up a free 30-minute construction company consultation.

How Can I Prepare a Standard Operating System for My Company

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Why Building a Successful Construction Business Requires Having a Plan

Over the past few weeks, we’ve discussed how building your business is critical to the success of your business and the importance of keeping your business in balance. After more than forty years of construction experience, I tend to view most things from a “building perspective”. Today we’re going to compare once again building a business and a construction project.

One of the most important parts of the plan for building a good building has nothing to do with physical construction. It has to do with processes and systems.

I have written about how building and operating a business can be like standing in the shadow of an overwhelming mountain and not knowing how to get past it. When you find yourself facing a mountainous obstacle it helps to have a plan.

One of those mountains when running a construction company is being pulled in too many different directions. Trying to operate all the different pieces of a business can be a big mountain. Having a clear plan and being organized can help you manage your mountain.

In your business, you have a specific way of getting things done.

But things are constantly changing, employees come and go, customers come and go, and if your company is going to stay in business you need to keep delivering high-quality construction projects regardless of the obstacles. This chaos just makes the mountain bigger.

So how can you maintain steady consistency with your company’s end results?

In an online article Workflow Automation shares how having standard operating procedures (SOPs) can help your business eliminate confusion around processes that are performed daily. This will allow your employees to be more productive and minimize mistakes! These procedures help you break down even the most complex processes so even a novice can manage these tasks from start to finish.

So, what exactly is a standard operating procedure?

A standard operating procedure is a set of detailed step-by-step instructions that describe how to carry out any given process. Companies that are serious about process management use SOPs to manage their day-to-day activities.

Having Standard Operating Procedures allow you to:

  • Achieve consistent results. With standard operating procedures, you complete your processes in the same way and achieve the right results every time.
  • Reduce costs and increase productivity. When everyone does the same task in different ways, eventually your organization will run into inefficiencies that cost you time and money. With SOPs you can streamline the process and increase productivity.
  • Create a consistently higher level of standards. SOPs are very useful when it comes to getting everyone on the same page and provides a standard way of getting things done.

Organizational paperwork is critical to having a business that operates smoothly and successfully. Having an organizational plan can answer a lot of questions before they’re ever asked.

This whole operational procedures thing sounds like a great idea, but also sounds like a lot of paperwork.

And the problem is…most construction people don’t like paperwork.

In a future post we will dig deeper into what is included in an operating procedure and how to prepare and implement one in your business.

Having an operational procedure is an important part of the Blueprint for Building a Better Business and is one of the tools that we plan to include in the Business Building Toolbox.

Portions of this are from a previous post on 10/27/18

The Time Spent on Clear Communication is Worth Every Second

by

So, if it’s Worth It…Why is it Not Done?

You probably guessed it already; this week’s topic is COMMUNICATION and the all-too-common lack of it. Because poor communication is such a big issue, I’ve written about it a lot.

In a production meeting with a customer yesterday I was once again reminded of the importance of clear communication and…the lack of it. The conversation revolved around how the subcontractors were doing.

The customers were very happy with their work and pleased with the effort to put plastic over door openings and to cover furniture in the work area. But she said, “We’ve never had an interior construction project done before.

I wish I had known how much dust was created, and I would have covered some additional things.”

Keep in mind that after forty plus years of doing construction, I knew that this was a very clean job site. The point is this…she didn’t know what to expect, and I should have let her know.

I should have communicated better.

Let’s look at reasons, results, and remedies for…

  • Misunderstandings due to poor or no communication
  • Being blindsided by cost overruns or hidden costs
  • Completed projects not being what you wanted or expected
  • Not understanding construction terminology

What is communication?

According to the Britannica Dictionary, communication is:

            “…the act or process of using words, sounds, signs, or behaviors to express or exchange information or to express your ideas, thoughts, feelings, etc., to someone else”

We all have our own perceptions and understanding of words, phrases, and gestures. I presume I know what you mean, and you do the same thing. This happens with spouses, family, close friends, and people we know well. If it happens in these relationships, it only makes sense that it will be more common with strangers.

Reasons people don’t communicate:

  • Takes time – People now expect things instantaneously. We have high speed internet at the tips of our fingers. Photos are developed the moment they’re taken and can be printed instantly via a wireless connection to a printer. We don’t have time to prepare or read through a multi-page document explaining a construction project.
  • Overwhelming – Reading through pages and pages of descriptions and explanations of construction legalese is a daunting task. As a customer, I probably won’t understand half of it. It’ll be easier to just go ahead and start. We’ll figure out the details as we go. I know what I want and I’m sure the contractor does too…NOT!
  • Lost skill – Communication is a two-way process. It requires both giving and receiving, speaking and hearing, writing and reading, expressing and understanding. If we don’t know how to use these skills, we can’t communicate effectively. Good communication requires more than emojis and hashtags.
  • Don’t like conflict – Most people don’t like conflict, but it can be positive. Conflict is always difficult but can lead to growth and change. It indicates commitment and can lead to better outcomes. It allows us to see the other side’s position. We should be willing to discuss disagreements without our feelings being hurt.

Results of poor communication:

  • Project wasn’t what you expected – You have a vision of how your finished project is going to look. You can see it in your mind. When you come home one evening, excited to see what has been done and then…it doesn’t look anything like the picture in your mind. What happened?
  • Cost overruns – You’ve saved and/or borrowed the money you think you’ll need to do the upcoming construction project. You get an estimate of what it’s going to cost. Sure, it’s more than you expected, but that’s alright; it will be worth it in the end, right. Then you get the final bill, and it’s a lot more than expected. Now what? Where are you going to find the additional money?
  • Time overruns – The contractor says, “Your project will be done in no time.” “This won’t take too long.” “We’ll be finished by the end of the month.” “This project will only take a few weeks.” This sounds great, but how long is too long, by the end of which month, how many weeks is a few? Trust me, your contractor’s definition of time idea is most likely different than yours.
  • Not knowing what’s going on – As you’re talking with your contractor, he’s telling you how this thingamajig is going to support that doohickey. We use the newest and best gadget to build our gizmos. All the while you are nodding your head as if you know exactly what he’s talking about. When, in reality, you have no clue. Wouldn’t it be worth it to ask some questions?

Poor communication can be solved with time and effort.

Trust me, clear communication is worth every second spent so just do it.

Updated post from 9/23/19