Category Archives: Construction

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.

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.

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.

Do not just jump into construction business without prior experience

Getting into a new business is never an easy task. It takes lots of guts and encouragement from others to take such a mammoth step. When you get into a business you will get to see how difficult it is to sustain in a competitive environment where everybody is running to make profits. Well there are few who are not only there in a business for money but they sincerely like that part of work which is why they got themselves into it so that they can pursue their dream work and can make good money from it. This means that they will love every part of their job and will never feel agonized by the pressure that they will probably feel coming from outside. People who are in a business solely for money will not be able to take it for long and there will be a time when they will feel saturated and will want to end it up there.

Other than love for what you do the next most important part is how experienced you are in what you are doing. Your experience will matter a lot when it comes to generating profit out of your business. If you see yourself to be a part of the construction business then having prior experience in this stream is of utter importance. You have to know about stuffs that are important for your business and that will help you to take correct business decisions. A person who has absolutely no experience in the construction sector will be completely dependent on advices coming from others. He will not have even the slightest of ideas if the advices are correct or not. He might take implement those ideas at face value and the repercussions could be drastic.

No doubt that one learns from his mistakes but simultaneously it is also important that they should gather some information on the subject that they would be starting their business. When you are in the construction business you are required to know a lot of things concerning to the business. For instance, you need to know how much to pay to whom. You have to know the industry standards and simultaneously should pay your employees. This is perhaps the most basic thing that one must know before he gets into any form of business.

It is advisable that you should first work in a construction company for few years and try to learn the tricks of the trade. You should have a fair deal of knowledge about how various department functions in tandem with each other. Other than that, heavy equipment play a crucial role in any construction jobsite. Learning few tricks of the machine will also help you a long way. People who get a construction business as legacy are also expected to learn the business first and then be a part of the tenured guys. First he needs to get some experience and learn the business well to make his place amongst the big names in the company.

Not getting enough business should not be the reason to wind your company

Every business has both ups and downs and so one must ensure that he takes all possible measure to try to keep his business afloat during the downs and try to save as much as he can during the ups. This is perhaps the most common phenomenon of probably every successful businessman all around the world. This phenomenon is not limited to just one particular industry but is accepted in any kind of business. We have witnessed the same instance in the construction industry many times.

People belonging to this industry often see it to be the ever blooming one and does not pay much attention to the fact that it can also have a downward trend which can appear anytime sooner. So they simply lack to take any precaution and happy making more expenses. But there also comes a time when you stop getting business. This could be due to several reasons. There has been a sudden increase in the price of raw materials or the policies of the government as such that it does not favor the construction segment. These could be few reasons why the business may take a dip and it becomes imperative for the business owner to take necessary steps in advance so that he can eventually save his business from completely winding up.

There are few tips that one should follow to keep his business floating and not think about winding it up.

Maintain a contingency fund:-

Maintaining a contingency fund is quite crucial when you are part of a business that is highly volatile. While you have set up the contingency fund, it is also imperative that you add some amount on a monthly basis and increase its corpus. At the same time, you should invest that amount is some debt funds where you averse from taking risks and are also content with the little returns that it is able to give you. What is important for you is to accumulate funds for the bad time keeping aside the intention to achieve good returns. So when you see the business is on its down, you can depend on the money that you have in the emergency kitty. Likewise you can also maintain a separate fund for business expansion which can be used for purposes related to the expansion of your business.

Cut down your operational costs:-

Cutting down your operational costs will help you big deal at times when the business is not doing to its potential. You have to give a clear instruction to the various levels of departments that they need to reduce the operational cost or they may have to face expulsion. Construction business being a volatile one does not stay put at one juncture for a long time and therefore there is every chance for it to bounce back real soon. If at all things get worse, then you might even take the decision to do away with assets that are no longer worthy to the company. These are few things that can be done to keep your business alive.

Heavy equipment mechanics are paid well in foreign nations

The demand for skilled labor exists in every country around the globe. Industries are in search of people who know their work well and can complete the task given to them with complete sincerity. If we can inculcate this in our lives, we will never go out of demand. Industries faces bad phases but they all come and go. Bad phases do not stay for long and definitely not forever. Therefore, one needs to understand what they want to become in life and accordingly master the stuff they want to do. It is only when they are master at it that they will be recognized by others and also they can expect volume of money flowing in. Other than that, they can also expect a good career. It is very crucial to give a good start to your career and once you have given that start, you will not find short of takers who will be willing to absorb you in their companies.

Construction business is a quite a thriving one these days. Industry experts believe that the year 2017 has great prospects for this industry and it will grow by all means. This also means that the businesses that are attached to the construction industry will also have its day in the sun. They will equally thrive along with this industry and so do the people who are connected with it. There is a lot of opportunity for heavy equipment mechanics in the US and also worldwide. Competent mechanics are in huge demand in the overseas market and are also paid in good sum. All they have to do is contact the company directly and talk to them about the requirements and also the remuneration that will be given to them. After you are done with the preliminary talks you can take some time and decide if you want to take the jump.

People should be mobile:-

For heavy equipment mechanics who are looking for a great career in the industry can go overseas. However, prior to this, they first need to be sure if they really want to go abroad. For a person who is quite attached to his family and friends, it will be very difficult for him to work in a foreign land. He will just not be able to adjust himself there. People who do not have problem being mobile and can easily get adjusted with people of different culture can think to move to a foreign land. They will not have much problem to adjust themselves there and can easily make some local friends. So before you start looking for opportunities abroad, give a thought to the fact that will you be able to survive in a place that you have never visited before.

Mechanics should be experienced:-

Since the foreign construction companies are in search of skilled workmen, heavy equipment mechanic should be experienced and should know his work well. Just by hearing the sound of the issue, one must realize the real cause of the problem and if you feel that you are that experienced then you can certainly give a shot in an overseas construction company.

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How to rent off-road articulated trucks

Heavy equipment always has a pretty decent sales value attached to it. This is why people do not mind paying more for equipment that will last for long and at the same time will fetch them a good price while selling it off. But selling the machine will be the end of the story and he can’t expect anything more once it’s sold. Therefore, there is something that can be done rather than simply selling the equipment. The machine can be put on rent if it is not required for the time being and once the tenure is over, it will be returned to the owner. It in fact makes more sense to let out your heavy equipment as you keep getting regular income and at the end of the tenure, you can let it out again at an increased price. Not just heavy equipment that are used for construction works but also trucks are widely let out across US.

A person can earn anywhere around $10,000 to $30,000 depending on the type of truck he has. It is simple to let out your articulated truck on internet. You only need to ensure that you have an account with an online portal that deals with letting you rent out of heavy equipment. There are some portals who only deal with selling heavy equipment and some deals with both selling as well as letting rent out. So you need to list it in the right place.

Articulated trucks are quite high in demand. It is because of their ability to carry loads of dirt at a go. It can also move on bouncy routes with the load on it. You seldom get a proper road on a construction site. More often, you have to carry the load on bouncy uneven paths. Using a normal can be a big pain for the driver but articulated trucks offer a bit ease to them while driving in such horrendous paths. Now if you have an articulated truck and you know the website where you can list the item, become a member and post the truck out there.

Few things that need to be remembered to catch the attention of the taker is how well you put down the information on the site. Just giving complete information is not much helpful. Putting it in the right way so that people find it easy to read must be your priority. Other than that, putting sufficient pictures of the truck is important. The look of the truck will form an impression in the minds of the takers and they might find your truck to be suitable over others. You can mention the rental value on the listing or can just state “Call for price”. This means that you will discuss the rental value over the phone or only when the taker likes the stuff. It also leaves both the parties with the option of negotiation.

Construction investor should not restrict themselves to domestic market

A wise investor is the one who believes in investing his money into multiple investment avenues and not just depend on a handful of instruments. As it correctly said, that one should not put all the apples in one basket because if one apple begins to rot, it will rot the entire basket of apples and therefore investors should always hunt for investment avenues that are less risky, little risky and some in high risk categories. Coming to the investors who invest in construction industries or projects, the rule remains the same. They should not stick to only domestic projects and should look out for opportunities outside.

Be it outside their city, or state and at times in foreign land as well. Investing in domestic projects will never allow them to understand the outer picture and the potential they have to make money by investing in projects outside the country. Big construction investors have all started domestically but as and when they saw themselves growing they opted to move to global markets and especially in countries where the economy is on the upsurge. This decision of theirs has given them more returns than they could have earned by being a domestic player.

Studying the economies of different country:-

A construction investor when thinks about investing in other country has to be very sure about the economy of that place. He has to do a thorough study about the government policies pertaining to construction projects. For instance, if the government of the country is interested to develop the rail and road infrastructure, it should give you a clear indication that you should invest your money in projects that relates to infrastructural development. Apparently, you also should be checking the health of the economy and if it has been doing well in the last few years. These sorts of research should be probably done by people who have studied and worked in such spheres so that they understand the ground situation well and can come up with better advices.

Government backing should be a must:-

It makes no sense in investing in a project that does not have government backing of that country. For instance, you are interested in the mining project happening in some African country and you find out that though it will give you high return but the risk associated with it is pretty high. Alternatively, the project should have political backing which if not present can cause enormous issues in the due phase of the work. In case, you do not see much political backing, irrespective of how profitable the project may sound, it is advisable that you stay out of it. However, analyzing the situation first and discussing it with experts is also recommended before you take the final call.

Think big to achieve more:-

It is imperative that you think big to achieve more in life. If you are content in investing in domestic projects throughout, then you may limit yourself to local projects and may not be able to cash-in from work happening in other states or countries which may be a big loss for you.