Building finances for your construction company. Does it take time?

Construction is a multifaceted industry and a risky business. It requires huge financial investments, which get returned as profits much later. Thus, it is an expensive business which offers delayed benefits. The construction project cannot proceed without adequate finances. Hence, the owner of construction facilities must obtain reliable capital resources to finance costs of construction. The owner does not just work on one project but numerous projects which are all financed together. In addition, there are other problems such as budget overruns, unreliable contractors and delays. If the owner is unable to cover costs, the capital investors face financial problems.

However with a pragmatic approach, owner of construction industry can build finances (achieve profits) in less time. Some of the guidelines for the same are as follows:

  1. The owner should be aware of the amount of work to be undertaken. Further obtain knowledge of the technical skills required which will enable to calculate the correct cost of construction project. Thus he should define goals and set expectations. Emphasis have to be on long term planning. Setting expectations enhances confidence of both clients and employee’s in the owner.
  2. Generally it costs less during planning and designing of the project but involves substantial expenses during construction. Instead of giving importance to sales, and getting deals, owner should develop understanding of the financial aspects and costs involved in the construction project. They can also hire appropriate project managers and financial consultants to understand the actual costs incurred by a project.
  3. Estimate the true profit by considering overhead costs, risks and job costs.
  4. Managing the job production to achieve profits: the job should be done in the cost-effective manner to make profits. Changing daily orders of operation and determining the productivity of labour force. When the work to be completed in 2 days, takes 6 days, it incurs additional costs. Thus jobs should get delayed.
  5. Accounting for profit by employing a project manager who keeps track of the budget and purchase orders. He has accurate knowledge of the expenses since he is present on the site. He applies construction specific accounting knowledge.
  6.  Since education always helps, hence training to be given to labourers, employees and management professionals.
  7.  Emphasis on written procedures (SOP) is important. Procedures should change improve. They should be evaluated periodically.
  8.  Effective Good communication with employees is valuable and necessary. They result in strong relationships with all parties and frequently result in future referral business.

Overall building finance in construction industry takes time. Following the above guidelines will enable the owner to develop business skills to reap profits in less time and have sustainable career in construction industry.

Why should we do preventive maintenance for heavy construction machinery

In order to increase the life of any mechanical substance it is highly crucial that it is serviced, checked and maintained at regular intervals. The mechanical instrument is perhaps being used all throughout the day and if any such instrument works for hours at a stretch then the chances of it breaking down increases manifolds. This is the reason why the owner of the stuff should take uttermost care to service it at regular intervals and ensure that if it shows any signs of wreckage that should be addressed then and there. Heavy construction machinery falls under the category where it works almost all throughout the day. Heavy equipment are quite expensive and the owner of the machine can’t afford to just leave it unattended and uncared. On top of that, you can’t work for a day without the help of heavy equipment. They constitute an integral part in the growth and success of your business and therefore their ill-health can’t be and should not be ignored.

Can’t buy another one easily:-

Due to the high price of heavy equipment you can’t afford to buy a new one whenever you see a need for it. No one wants to sell their used heavy equipment for cheap and if that is the case then one can easily imagine the price of brand new heavy equipment. For that matter if your machine goes out of order and you need to keep up with your work pace you have to get another one its place or repair the existing one. Getting another one is not a wise idea and getting repaired means you have to wait for days to get it back fixed. This means that your work is now in jeopardy. This is one of the prime reason why you should always ensure that the construction machines are serviced and maintained regularly so that it does not develop any glitch at the time when you need it the most.

Hiring a mechanic can prove to be expensive:-

Heavy equipment mechanics are equally expensive as they understand the complex stuff that they are dealing with and when you deal with a complex thing you charge more for that. So if there appears to be any technical glitch that may have surfaced due to improper maintenance, you have to call a mechanic. Now this guys will fix his rate depending how complex the problem is and how long will it take for him to get it fixed. Moreover it will not be a day’s affair. He might just take the machine with him and will give it after a couple of days or may be even more. The same is applicable if you give it to an authorized dealer who fixes heavy equipment.

Servicing and maintaining heavy equipment is not a thorny thing to do. It is all about remembering the last time when you serviced the machine and also recognizing from the signals the machine throws if it develops any problems.

Hard work and dedication is all needed for the growth of construction business

We generally believe that construction business is a highly profitable one and people who are associated with it know the secret of making quick money. Well as a matter of fact, first and foremost there is nothing like easy money. It may be quick money but one can’t guarantee how long does the quick money last but there is definitely no easy money. People belonging to whatever industry have to work hard all day to earn money and they do not want to emphasize that as neither quick nor easy money. Same goes with the men in the construction domain. Right from the person who owns a construction company to the one who work in that company, all of them have to go through rigorous hardship day in and day out to achieve success and the money that comes attached with the success.

There are basically 2 most important attributes that is required to form or to transform a small construction company to a giant organization and these attributes are something that we have been doing all our lives without knowing the importance of it. The first one is hard work and the second is dedication. As you spend more time in the construction business, you keep on learning new things that were completely unknown to you or is probably unknown to many in this domain. However, you get to know those things only if you are dedicated towards your business. One who gets knowledge is the one who seeks it. Therefore, you have to keep your dedication intact irrespective of whatever challenges comes up in your life. Difficulties are part of our daily life and they come and go often. If they start bothering you, it will be tough for you to take things ahead in life.

Dedicated towards your work will also keep you focused towards what you want to achieve in life. It has been often witnessed that people after having started their construction business plan to wrap it down in few years time. This happens because they have entered the sector thinking that life here is a bed of roses where challenges are rare to come. They can make good, easy and quick money and will still rich forever. Things are not what these men contemplate it to be. It is indeed absolutely contrary to their imagination and they fall flat on their face when they see the industry is giving them several blows without anytime to recuperate.

Dedication and hard work goes hand in hand. In fact, it is dedication that gives rise to hard work. You will not work hard on things that you are not dedicated to do. You will find the work monotonous and after some time you may lose interest from it. Stories of ace construction companies should be read to know the pain they have gone through to reach the place they are in. That will motivate you to work harder and extend your limits of persistence.

Veterans should focus on new entrants and guide them throughout

In every industry the role of veterans in nurturing the business cannot be ruled out. They play a pivotal role in shaping up the future of the company and also the career of many individuals who learn from them. At the same time they also earn a special place in the company and if ever the company goes through a rough patch, it is the veterans in the company that secures their place in the company. They are probably the last one to be kicked out. The experienced ones however have to make this place for themselves by giving their time and paying attention on the new guys. It is the experienced lot who can train the new guns about the systems in place and the process of work along with the culture that is followed in the company. In a nutshell they have a big role to play irrespective of what industry they belong to.

Veterans have a stronger role to play when it comes to the construction sector. This sector being quite vast in nature, it takes years for a person to learn things and to master them. People commit lot of mistakes when they are new to work and with every mistake they take a step forward in learning something new. Veterans can make things a bit simple for them by providing them with proper guidance and showing them the correct way to get the assigned work done. Construction business is not only a vast one but also quite complex and the newcomers will for sure find it difficult to comprehend things in the beginning. They need someone who can walk them through the initial phases and be with them whenever they need their advice.

Try to become their mentor:-

The newbie who get into the construction sector look for people who can turn out to be their mentors. They may come across many people who will help them. The new guys will try to pick a mentor out of the many people whom they feel is able to guide them in the most appropriate manner. The work of a mentor is undoubtedly a difficult one as he will be bothered with all sorts of questions. It will be a real test of his patience and he needs to prove his credibility by being calm and answer their queries as and when it shows up. After spending anytime between 8-10 years in an industry one becomes a veteran but you need special qualities to become a mentor and not everybody can become one. It is only those who have sound knowledge about his work and can calmly impart it to their juniors and subordinates can ultimately possess the quality of becoming a mentor.

Be a problem solver:-

Day in and out the new guys will come across new things and that will indeed riddle them and compel them to ask questions. Now if they turn up to you, they come to you with believe that you have the potential to answer them. This is when you also need to do your best and try to solve the problem they are in. Try to be a problem solver. This will mean a lot to them.

How are bridges built over water?

Bridges are one of the most important constructions of the modern civilization. It connects distant places with each other and people can easily travel from one place to another. We all have travelled by many bridges some time or the other. But, have we ever thought how the bridges are built over water?

Not only just the river banks are connected with bridges, but even two creeks or more creeks of the oceans are also connected with magnificent bridges. Building flyovers on the concrete roads is easier than building bridges over water. Here is something interesting and knowledgeable that will stun you about the advancement of modern civilization, power of construction and technology.

Factors associated with building bridges:

Before you go into how bridges are made, there are a few things that you need to keep in mind. The bridges over water can be of two types – the floating ones and the permanent ones. Quite obviously, the floating ones are not permanent and are used only temporarily. Hence, they do not need a foundation. But the permanent bridges need a foundation and for that there are three basic factors that need to be kept in mind. These are –

  • The condition of the site
  • The technical ability and engineering capacity of the contractor
  • The technology available in the country.

The first two factors are dependent on the engineers to measure. But, the factor of availability of technological support depends entirely on the construction equipment that is available. For that matter it must be mentioned that there are various types of construction equipment available in the market that are specially designed to support bridge construction.

Steps of constructing a bridge:

When bridges are built over large water bodies such as a very deep river or even the sea, the following steps are followed.

  • Constructing the Foundation:

 

In order to build the foundation, a bed is sunk inside the waterbed from the top. It is like a frame to the pillars that will hold the bridge in place. After that, a support pier is made with the help of rigs.

  • Construction of Cofferdam:

 

Around the support pier and rigs, a Cofferdam is made. It is a special type of wall that is created surrounding the foundation. Continuous pumping removes the water from inside. The area is completely dried out and then, the foundation is made.

  • Bringing everything together:

 

After the construction of the foundation, the support piers are either cast in the yard or cast in place. Sometimes, this process is done elsewhere and then, barges are used to bring everything together.

Once this is done, the gaps are joined with segments of concrete structure.

Sometimes, the segments are supported by huge suspension cables. As they are brought into position, they are stitched together. Though these are the most common methods of constructing a bridge, there are other methods as well that are followed to construct the bridges. Certainly, the methods that are followed for bridges in shallow water are different from that in the deep water.

Rent an excavator

For guys who has lot of heavy equipment that are lying idle for the time being and they are unsure as to when they might need them again they can rent it out to people who will make some use of it and keep the machine in working order. If you keep heavy equipment idle for a long time and then all of a sudden start using it, it will generate issues. It may just not start or might give problems for which you need the help of a mechanic to get that sorted. This is why it is always better that you rent the machine out to someone who can use the machine and also pay you the rental.

There are some companies who solely deal with renting heavy machines to contractors and other small and big sized construction companies. As a matter of fact most of the big construction companies to a certain extent depend upon rented heavy equipment. The big sized companies hire contractors for the job who in turn largely depend on rented heavy equipment. This means that as long as you have a thriving construction industry, the parallel business of renting heavy equipment will never run dry. One of the most common heavy equipment that is used in almost every construction jobsite is an excavator. So you will normally find the demand for excavators on an increasing trend and if you have them in plenty then you can for sure make good sum of money by not doing anything.

All you got to do is simply rent them out to contractors or construction companies and ensure that they do not misuse it or overload it with work. Normally people have the tendency to get more work done on heavy equipment that are rented. They know that they do not have to keep the machine with them forever and therefore do not have to bother about the maintenance and service costs. Since it belongs to you, you are supposed to make sure that the excavator is not overloaded with work and is also serviced at regular intervals.

You can rent your excavator by listing the machine on an online portal. Portals that are meant for renting heavy equipment should be used for this purpose. Register on one such website and take few pictures of the excavator to post it on the listing. Please mention the model number of the excavator on the title of the listing and be a little descriptive about the machine. You may want to add things like the age of the machine and few of its features that will attract the attention of the prospect. The pictures that you add should be clear for the prospect to make out if at all the machine is worthy to be taken on rent.

Leave your number on the listing for interested people to contact you and if they want to inspect the machine you should not have any problem with that. The website will charge you some fees to list the item but that will be too nominal and should not be an issue.

Why do airport runways cost so much to build

To construct an apartment or a townhouse, it requires good amount of investment on the part of the construction company. They also need to be well prepared when it comes to the investment part and can’t just enter in a project without considering the ups and downs and other monetary challenges that the company may experience in the short or in the long run. A lot of heads need to come together to decide the viability of the project and the amount of money that might come as an expenditure on the project. Once they all come to a common consensus they give their nod for the commencement of the project. Well constructing a township is not as expensive as constructing an airport. When you are in the process of building a new airport you got to think of lot many factors that does not play any role while constructing a condominium or for that matter a one unit family.

Constructing airport is a different ballgame altogether. There you got to understand many things and keep into mind every small stuff as you also will be dealing with the safety and security of the passengers. So you just can’t afford to go wrong at any point in time either with the design or with the construction. Moving our focus from the airport to the runway, it is believed that the runways cost more than building an entire airport. The reason is simple. The runways are the major load takers. On a daily basis there are countless of planes that takes off and lands on the runway. Now the weights of the plane are not less than 100,000 pounds and some are even heavier than that. So one can imagine what the runway has to go through on a daily basis. Million pounds of weight taking off and landing over it only suggests the quality of the runway and the kind of material one has to put to construct a runway.

Other than that, it also has to take the wrath of the monsoon and other extreme weathers and still has to continue to perform. You can’t have a runway with potholes. The plane will just not be able to fly and therefore the maintenance is also crucial. You need to put in a lot of concrete materials and can’t think of saving any money in terms of exercising low cost raw materials during the making of the runway. You have to use the best materials and the best does not come at a cheap rate. You also need to be ready to pay the right price for it which eventually makes the entire process of constructing airport runways an expensive affair.

It is not only about expensive raw materials that one puts in to construct a runway. It also involves people who have the required experience to build such a massive project. These guys will undoubtedly demand higher package which also impacts the cost of the construction.

Second hand machines are better alternative to newer heavy equipment

If you have a start-up business and are aware that you will always have the need of funds to function, then it makes little sense to buy new heavy equipment which will cost thousands of dollars. On the other hand, you should focus on buying used heavy equipment which has the potential to function if not like a brand new machine but no less than that. Second hand machines are always a safer bet for young construction companies. They need not spend a fortune in procuring machines that will perhaps be a bit faster than a second hand machine.

We will speak about few advantages of buying second hand heavy equipment over a brand new one.

Functions may be user friendly to the operator:-

One of the major disadvantage of new heavy equipment is that the functions involved in the machine are completely new and the operator may take few days’ time to learn the stuff and set its hand on it. For the first few days he will experience a bit of uneasiness on the new machine. This can happen with a highly experienced operator as well. He will be bound to make few mistakes while operating the equipment. They feel at home to work on machines that they have already worked on in the past.

The functions of the second hand machine will be quite familiar to an experienced guy and he will not take much time to begin the work. Simultaneously, if the machine breaks down, he may have some idea on the probable issue and might give some advice to get it back and running but if he is working on a new machine and is having a hard time to operate it; you got to call the technician of the company to fix a problem.

Second hand machines are pretty economical:-

Money plays a vital role in the construction business. A contractor will be happy to invest his money in machines that cost less to him and are highly productive. He will not want to compare it with newly manufactured heavy equipment with advanced technology attached with it. It hardly matters to him as far as he is able to make sizable profit and run his business after paying all his debts to the stakeholders. In a situation like this, the contractor will certainly want to invest his money in buying used machines as that will help him to save a lot which can be utilized for other operational expenses.

Procuring second hand heavy equipment is no tough job:-

Buying second hand machines have become relatively simpler than what it was a few years ago. Now one need not depend on newspaper classifieds to know about the person selling used machines. All he needs to do is type the kind of machine he wants on the internet and he will find a number of sellers who are willing to let go their machines at a reasonable amount. Establish contact with them and make the deal.

For beginners – Don’t buy heavy equipment. Rent them

Beginners joining any profession have to be really careful on the expenses they are making on their business. They might have extremely no control on their expenses as they may not understand how to block the flow of expense. They have to take care of a lot of recurring and non-recurring expenses and while they do so, they may completely lose track of the money left in their bank account. One fine day, they may find their bank account showing very less balance and may foresee lot of expenses to clear. They may find themselves to be in a very tight position and therefore it is important that they refrain from doing any expenses that is not much needed for the smooth running of the business.

To be more precise, if you are in the construction business, you got to be more cautious than ever. For timely completion of projects, you got to possess heavy equipment that are very expensive and if you do that then you tend to spend a good portion of your money for procuring the machine. This may leave you with very little money to meet other business obligations. Hence, it is advisable that if you are a beginner in the construction industry, do not spend your money in buying heavy equipment. On the contrary, you can take them on rent. That will turn out to be a good deal for you where you do not have to spend a bounty and things will be very much in your control.

Identify the heavy equipment you may need for your project:-

It is very crucial to know what type of heavy equipment is required for your business. As long as you do not know that, moving ahead will be difficult. Take guidance from people in the industry if you have any or join some blogs where you can put your questions about heavy equipment to them and you might get real good replies which will prove to be very helpful to you. Once you have identified the heavy equipment, the next goal will be to check the rental price of the machine. Not every owner of the equipment will rent it at the same price. The rental price of the machine may vary keeping into consideration the quality of the machine, the period for which it has been used. In other words, if the machine is not much older then you may have to pay more rent. However, if it is an old piece then you supposedly have to pay less for it.

Go to online portals to check the machine:-

Owners list the heavy equipment on websites that deals with selling and renting of construction machineries. Going to such websites will be really helpful to you as you will get to see a lot of options at different prices. You can then select the one that you seek to have and speak with the owner. If possible you can negotiate the price and try to bring it lower. You will end up getting a good deal at a considerably lesser price.

Rent a compaction roller (Sheep Foot or Smooth)

Rent heavy equipment and make good money out of it rather than keeping it idle should be the intention of a person who has a construction machine and does not make any use of it. By renting heavy equipment people they not only make money by literally doing nothing but also ensure the machine does not go dead. If a construction machine has not been working for days there are higher chances that it will not even take a start on the day you need it. Therefore it is a must for one to make sure that the machine does not catch rust by sitting idle. So the best alternative is to let-it out in case you will not need it for the next few months. If you have a compaction roller it will not at all be a problem to rent it because there are whole lot of people who wants compaction rollers (Sheep Foot or Smooth) for road building work.

Compaction rollers play a pivotal role in road construction and for leveling the ground. The Sheep Foot or Smooth rollers are used on the basis of the soil that they have to work on. So if you ever find a person who is looking for a compaction roller, do let them know the type of soil your machine can work on.

Take help of a Rental Salesman:-

You will find a lot of small companies and rental yard that deals into renting heavy equipment. You can approach one of them and check the rental price that you may get. You need to tell them the model number and what type of soil does the equipment compacts. The agent will be a big help to you to understand the price that you may expect and also if they know anybody who is looking for a compaction roller then they can pitch in your item. They will charge some percentage of the rental price as their commission but the entire affair will be an easy one for you. You will not be bothered with calls from prospects as they all will be calling the rental salesman to inquire about the roller.

Listing the roller online:-

If you are a tech savvy person and know how to list items on websites then you can register yourself on an online portal and list the compaction rollers out there. Try to be as descriptive as you can and also post some good pictures of the rollers. The prospects have no other way to understand the real worth of the machine other than going through the description. If the machine has any issues try to get that sorted before you have listed the item and also do mention about it in the description. Also if you have changed any parts of the machine, please describe that as well out there. The prospects if they like the rollers will get in touch with you and may want to inspect the machine before going ahead to take it on rent.