Starting a construction business – start with demolition work

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It is often advised that when you start a new business do not begin with doing something difficult because you may then end up in taking enough stress to complete the job which will have a drastic effect on your job and things may go quite negative for you from there. In order to avoid such a situation you should take up something that is easy and does not take too much of effort. You may also save on your money and need not deploy more resources to get the job done. You will also make good money doing it and will start enjoying your work. However, you should not make that as your comfort zone or else it will be too difficult for you to get on from it. Though you are starting with something small and easy you should not limit yourself to that and should dare to think beyond that as well.

A business that is highly volatile in nature should be dealt with utter carefully and when we talk about a volatile venture, we can’t forego the construction domain from it. A person who is on his way to start up a construction business should keep his foot softly and understand the intricacies well before he goes full on. As every individual likes to work on a particular segment, he should stick to the simplest work in his segment. For instance, a person like to work on machines and is interested in works like road construction should stick to constructing lanes and broaden roads. He should not take up projects of building highways that connects one city to another. He may not be able to complete it as he will experience a lot of hardships coming from various angles.

Similarly, it is advised to business owners to begin with demolition work before they start taking projects like building apartments or commercial houses or things or that extent. Demolition work is considered to be the simplest by all means. He do not have to spend a big chunk of money in procuring heavy equipment as he can do his job with a dozer or any tractor and attach a wrecking ball and break structures. Well, the demolition work also has many layers where if he goes for bigger projects he needs to have modern machines to get the work done. In that case, he may not do the job using a wreck-ball.

Simultaneously, he also needs men who have experience in demolishing a 6-7 story building. He may not be able to go that work using his dozer. There he may need more than a dozer. But before he eyes for bigger projects in the demolition genre, it is important that he tries to first set his foot firm on the ground by taking up jobs that will help him to sustain for some time and help him learn from what he is doing. Once he spends few years and accumulates enough wealth and experience to take up something big, he should call it for the next round.

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Appoint expert mechanics to fix heavy equipment

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Construction and mining industries are highly dependent on heavy equipment and if they do not work for a day can cost them huge sum of money. So the thing that becomes important for them is to ensure the health of the heavy equipment is in good shape and in case if there is any problem irrespective of how big or small it is, get it rectified then and there. It is not the operator’s work to check if the heavy equipment is doing well and is free from all issues. Though in our practical world, construction companies expect the operators to take care of that part as well. What operators can do is identify if there is any issue with the heavy equipment and if they see anything wrong, they can directly report it to the concerned authorities who will take up things in their control and try to fix it before things go out of control.

So when we speak about the concerned authorities, it can be the guys who are given the task to ensure that the heavy equipment are in good shape or it refers directly to the mechanics that are appointed by the companies to keep the machines in order. So the operators if identify any problem with the heavy equipment can report it to the mechanics and try to get it fixed in no time.

Now the crux of the matter is how competent are the mechanics that the company has hired. Well, if the mechanics are not competent enough, then it can be a grave problem for the construction company because they may not know what is wrong with the machine and eventually on one fine day, it will just stop working. There is no point to fire them then. You got to make sure that the selection process is stringent so that you can hire the cream or you can just collaborate with some freelancers who are good mechanics and pay them what they are worthy of.

In no way you should be risking the health of your heavy equipment by giving it to mechanics that do not have complete knowledge or lack experience in the subject matter. Hiring freelancers can be expensive but that will still be a worthy affair as their services will be anytime less than the total cost of the machine. Also you have to keep in mind the loss you may incur if the machine is non-functional for a day or so. Other than this, there are construction companies who appoint contractors to work for them. Now these contractors do not own the heavy equipment. They mostly get it on rent from someone else and they have to return it the way they got it. That is without any fault or any major wear and tear. This is why it is a must for them to have a tie-up with expert mechanics. You can also give the machines for monthly or bi-monthly maintenance to these mechanics. These create a good rapport with them and if there is a situation where a part needs to be replaced they might do that for you with minimum cost.

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Heavy equipment tricks

We use tricks for every small and big thing and we do so to ensure that we get what we want. So even use tricks to get their work done quickly. There may be 2 ways of doing a job. The first one is the tougher one and particularly more time consuming and the second one is the simple way but that will require you to apply some tricks to do it quickly. So the guy who has got some tricks or who can apply his presence of mind and come out with a trick will for sure use the second way to do the thing. Having said so does not imply that the first way is incorrect or should not be used. It is just that people who knows how to deal with situation will go for the second option rather than the first one.

There are lots of tricks that one can apply on heavy equipment. The only prerequisite is to know if the one you will be using will work for sure. While you are using tricks, you also got to be confident that it will work for you or else it will simply waste of effort. Nevertheless, one also should not be shy to use a trick just because he is scared of failing. At times, the trick may not just work but you will be content that you have at least given it a shot. There are people who shy away from applying anything new and follow the same orthodox ways to do a job. These men may argue that using tricks does not work every time. They can be true with their perception. But using of a trick plainly means using an innovative idea which should may or may not work.

Heavy equipment tricks make job simpler:-

When you come across situation that you do not know to deal with, it is perhaps such situations that help you to think and come out with a fabulous trick. You may use the same heavy equipment but may apply something extra that helps you to complete the work. Well that applying something extra means trick here and there have been numerous occasions when people have applied tricks to make the job look simpler. Some of the tricks have later been used to bring certain modification in the machine so that those tricks can be incorporated and a complete package is then given to the consumer.

Heavy equipment tricks used by engineers:-

The engineers working for heavy equipment manufacturing companies are the ones who keep on experimenting with some or the other tricks in order to offer value to the consumers. They understand that inputting few tricks will only improve things for the end user. The engineers play a pivotal role when it comes to applying tricks on earth moving machines. Not all earth moving jobs are the same so how can one machine be capable of doing all kinds of work. This is being the primary reason why tricks on heavy equipment are still used.

Process to acquire a construction company

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The acquisition or buying of construction firms is common in construction industry. This transaction involves a buyer and seller. In terms of business it is also called as acquirer and the prospective acquiree possessing the target company. The buyer may be motivated to buy a target company due to future growth plans, diversification in market, geographic expansion, market penetration, organizational development and to increase the assets.

Construction is a risky business, hence these transactions should not be done in haste. The buyer or acquirer needs to be diligent and should have a strategic plan. The buyer must create database of the interested target companies and collect each company’s information in terms of factors such as revenue, profitability, growth rate, number of employees, and products, so forth. For the transaction to take place it follows an order as

 

1.Initial contact:

The first step in the acquisition process is the initial contact with a prospective acquiree. It can be made by different ways as

Direct call and meeting: The buyer makes a contact with owner of the target company either through a direct phone call or an email to initiate one to one discussion. The initial discussion may be followed by many more discussion before a final deal is struck.

Joint venture: Instead of direct acquisition to enter a joint venture agreements which gives the acquirer the overview of the company’s management and operation.

Third party: Instead of making a direct contact, the acquirer delegates the work of contacting target companies to the third party to make inquiry about the willingness of the owners to sell.

 

2.Non-disclosure agreement:

If the prospective seller is interested in selling his company to the acquirer then both parties sign a non-disclosure agreement (NDA). This stamped document is highly confidential and information is not be given to any other party.

 

3.Letter of intent

Post NDA, the target company should send its financial statements, summary level documents to the acquirer. Based on this information, the acquirer may proceed with the further transactions and is documented in a letter of intent (LOI)

 

4.Due Diligence

It is the process of investigating and estimating a company before buying it, a comprehensive analysis of legal, financial and management documentation. The acquirer then sends a list of information and documents as due diligence requests to the target company. As a rule, for Due Diligence is necessary requires at least the following information:

1) corporate documents; 2) entitled documents (e.g., copies of powers of attorney); 3) licenses; 4) accounting and financial documents; 5) documents relating related to the assets of the company; 6) information on the rights to intellectual property;  7) all commercial contracts and agreements;  8) information on labour relations;  insurance; about disputes and litigation, administrative proceedings;  9) other documents relating directly related to the company. Since due diligence involves a lot of research it is conducted by both legal consultant and technical specialist in construction.

 

5.Final negotiations

The results of Due diligence if not found satisfactory then the buyer may either decide to proceed by decrease in cost or may not go ahead. If everything is favourable then buyer may proceed with the transaction and present the seller with a purchase agreement. If the terms and conditions and price are agreeable to the seller than the transaction would be complete.

 

The process of acquiring a construction firm is not an easy task. One needs to be experienced and understand the market trends to be successful at it.

Heavy Equipment Repair Technician

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Heavy equipment and machines are widely used in construction and mining industries. The equipments are very expensive and cost from hundreds of thousand dollars to millions of dollars. The work at these workplaces causes wear and tear, hence proper periodic maintenance of machines becomes necessary for the machine to be in good working conditions. If care is not taken, it will stop working and will lead to unnecessary delays. Most of the industries have heavy equipment repair technicians. These technicians install, maintain and service large industrial machines and vehicles designed for activities such as transporting objects, lifting material and earth-plowing. These workers are employed by equipment wholesale distribution firms, construction companies, mining industry, and other organizations which operate and maintain heavy duty equipment.

 

For a technician’s job a formal degree is not compulsory. Many technicians complete their high school diploma and undergo vocational training or obtain an associate degree in heavy equipment repair or are acquainted in handling of heavy duty machinery. They have to undergo several years of on job training. Most technicians start at entry level jobs where they work under experienced technician’s supervision. As they start gaining experience of wide variety of different equipments, they are given complex tasks to perform. Generally, it takes 3-4 years on job training to be qualified as a fully experienced heavy equipment repair technician. Salary for this profession is higher than average of all installation, maintenance and repair work.

 

Repair technicians generally work indoors but at times may have to work outdoors. To repair equipment they have to lift, handle greasy parts, stand and lie in awkward positions. Thus good physical conditions and agility are important. Due to size and complexity of equipment, safety is of prime importance. Small cuts, burns and bruises are common. Thus there is always risk while working with heavy equipment. Technicians use a variety of tools in their work: power tools, such as pneumatic wrenches to remove bolts quickly, machine tools, like lathes and grinding machines, to rebuild brakes, welding and flame-cutting equipment to remove and repair exhaust systems, and jacks and hoists to lift and move large parts. With many types of modern equipment, technicians use diagnostic computers to diagnose components which need adjustment or repair.

 

Additional qualifications required for the repair technicians are: they must develop good reading and interpreting ability. They should learn and become comfortable with the latest technology such as; computers and electronics since these are used to adjust and diagnose problems. Further they should have certain attributes such as; the mathematical, mechanical and analytical aptitude, to work as a team-player and work with little or no supervision. Highly adept and experienced heavy duty repair technicians may advance to service manager positions and some can even start their own business.

Going out for vacation? Whom you can handover the business?

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Entrepreneurs work hard to manage and operate the entire business. Due to which they run a risk of burnout. They should take vacation to keep a work-life balance and stay refreshed. Taking time for relaxation will make them better decision makers. However, it is not easy for them to get away from the daily routine job which is very demanding. They should bear in mind that the company can run without them too for some days so taking a vacation will be helpful activity.

The following are some of the tips which may be useful to follow when boss plans to take a vacation.

1.Advanced preparations

He boss should communicate to the employees the dates of vacation. This will allow the employees to complete the necessary projects or approve of deliverables before vacation.

In case of individual clients and direct customers they should be informed early about the absence period. This allows prioritizing projects to be completed and the tasks to be delegated to be completed later.

The boss should take important contacts and their phone numbers on computer, mobile phone and on a piece of paper. Having this list readily available will save time in case of need to contact any of these people to handle an emergency while on vacation.

 

2.Type of communication

One or two people should only be allowed to contact the boss during the vacation period. Especially for updating about projects, when immediate attention is required or a new client has joined. The communication should take place via emails or text messages and only if needed then by phone calls.

 

3.Avoid working on big or major projects

Even when boss takes a vacation, the projects will be going. However any live or major projects should not be started during this period. Since there can be initial problems and project may not get completed thus may ruin the mood of vacation.

 

4.Prepare and train the employees

Make a list with employees so that know how to handle various problems and emergencies Though this responsibility would be delegated to only one employee, others should be also aware of how to handle the situation.

 

5.Every project should have a designated leader

While the boss is on vacation, every project should have a designated chief who ensures that deadlines are met and quality is maintained.

 

7.Do not hand over the reins of company

Although the teams may be running the projects successfully, the project leaders should never be allowed to take any major company decisions in absence of the boss.

8.Handover the projects

The boss should set up a meeting with the person/s who will be handling his project. Hand over the document which lists the important points regarding the project in terms of source of information, main deliverables, main risks/issues, stakeholder and sponsor’s contact details. This allows the work is completed within the given time.

 

9.Built a dynamic and dedicated team

This ensures that the work does not suffer and is completed within the required time frame.

 

Thus with careful planning, putting systems in place and by trusting the team, vacation time of the boss would be spent with enjoyment and relaxation.

 

How to fix the tracks on an excavator when falling off

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While you are at work in the construction jobsite, you can’t afford to see the heavy equipment not functioning due to technical snags. That is perhaps the last thing you want to happen. This is why many construction companies these days hire mechanics who come to the jobsite the moment they get a call and try to fix the issue in the next few hours. However, if the problem is grave then it may even take days for them to resolve and this will have a severe impact on your day’s work. You then have to make it up once you have the heavy equipment up and running and you got to ask your employees to stretch to cover up the pending work. This is a big problem which many construction companies encounter when they are not vigilant about the current status of the machine.

Another big issue is with tracks of the excavator getting off the machine. They just come out while you are at work and you are not sure what to do to get that fixed. Calling up a mechanic may not always be the right option though it is a recommended one. But the fact of the matter is mechanics at times have their own commitments and they may not answer your call or may take their time to come. So you got your work tied up as you are heavily dependent on a mechanic to get the track of the excavator fixed.

When you see the track of the excavator is falling off, you can try things on your own to get it resolved and may not even need the assistance of any mechanic for that matter. All you have to do is make use of the boom to lift the side where you see the track has gone derailed and use a heavy piece of wood to prop it up. In this way you simply back off the tension and then can make use of a bucket to put the track on the line by pressing it against the track. Once that is done you drive the track on from the cab. A word of caution will be do not move the excavator from its place till you fix up the track. You did not need any special tool to get this going and was also quite simple.

In case you do not see that to be working then the next best option will be to call up a mechanic or someone who had encountered this issue previously and was able to fix it on his own. He may be the guy for you and can but it back. What you got to do is check how the mechanic puts it back on track so that if it happens the next time you know what you have to do to get it resolved on your own. There are many things in heavy equipment that does not require the intervention of a mechanic and one can get things done on his own and fixing the tracks on an excavator is one such job.

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Success in construction business is dependent on your foresightedness

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Things do not always move in one particular direction. You will see a lot of changes in things from what it is now and what it was in the past. Changes are bound to happen and when it does happen, it turns out to be good for some section of the population and bad for the rest. There is probably the third section which is not affected by it at all. The one who manages to taste success are the ones who are able to make right estimates at the right time. So the people whom you see at the top of various industries have managed to reach to that position by laying down their strategies after taking some very accurate estimates. Now the estimates are not something that is taken on air but are in fact made on the basis of precise information, some general calculation and most importantly foreseeing opportunities and threats.

One such industry that requires its men to be highly foresighted in order to become successful is the construction sector. This particular sector is indeed dependent on various other sectors and any rise or fall in the prices of the associated sectors can have a major impact on the overall construction sector. So a person who can foresee a challenge or an opportunity will take decisions accordingly and will keep his company safeguarded from any market threats.

Likewise he also will be able to make good money for his company in the same manner. This does not imply that a person who is foresighted never makes an error. Nobody is able to read the market correctly. They can all make some very close estimates but that does not mean that they will be correct at all times. There are also chances that they will end up making a mistake in calculating some facts or taking some accounts into consideration and which will cost them big chunk of capital. There are many instances where construction companies have taken incorrect judgments which have cost them dearly. But these are parts and parcels of the business. If the business owner hits the right note, he makes a bounty but if he somehow fails to get it right, he should be ready to face the music as well.

Strategy makers are ideally people who knows the in and out of the construction segment and therefore they are in a position to foresee things which others can’t. They are considered to be the highest paid in the industry and many even open their business as they do not see any reason not to have a business of their own. If they generate the quality to foresee things as it comes their way, they are able to take better decisions and this can really pay him off well in the construction business or any business that is linked with the construction sector.

Foresightedness has always been considered to be a virtue and people who possess this quality never have to look back at things. They only aim for bigger aspirations in life.

 

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How to purchase worthy heavy equipment

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Be it a construction business that owns heavy equipment or contractors who uses their heavy equipment in various construction sites, they all are worried about one basic thing and that is have they bought worthy heavy equipment? Is the machine going to work for many years as promised by the dealer or the heavy equipment company? These thoughts do make several rounds in the mind of the person who has recently bought heavy equipment and it is also very obvious for them to worry about the worthiness of the machine. They buy heavy equipment after investing thousands of dollars and they want suitable outcome of their invested money. They just want the machine to function when it is required to.

There are few things that one needs to do before he decides to go for procuring heavy equipment. These steps are simple but many skip doing them due to several reasons better known to them.

Go for a good brand:-

Purchasing heavy equipment from a famous brand has a lot of merits. A famous brand will not afford to play around with the quality of the machine and therefore whatever they will manufacture will be of top notch quality. Though they may sound to be expensive but will be very reliable when it comes to performing on the jobsite. You may have to shell more money while buying the item but then it will save your money as far as fuel consumption is concerned which becomes another major cause of worry to the owners of heavy equipment. Moreover, they will cost less on maintenance and will be more productive unlike machines of less popular brands which start giving problem after few months of purchase.

Take valuable suggestion from industry experts:-

It makes a lot of sense to take suggestion from few people who knows the in and out of the subject and then take your call. The heavy equipment company will speak all positive about the machine but you will get to know about its negative side from industry experts who have been working on different kinds of heavy equipment for the last many years. They might be in a better position to give you valuable suggestion about a particular machine. You might also consider taking suggestions from more than one person. However, refrain from involving too many people as that might confuse you and weaken your decision making ability.

Take an expert with you to shop for heavy equipment:-

Ask an expert to accompany you whenever you decide to buy machines. This is perhaps one of the best options you can take to purchase worthy heavy equipment. It will actually allow the expert to personally check the machine and also ask certain intrinsic questions which are technical in nature that you may have skipped to ask. This will always prove to be advantageous to you. The only criteria will be that you should know he is a trustworthy guy and will not mislead you.

 

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Need advice on the best heavy equipment for the job of clearing land of 30 acres

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Today the work of land clearing (of forests) is done efficiently and in minimal time using heavy machines instead of the earlier used hand tools. This has enabled to convert forest regions into productive agricultural practice on smooth land based nearby to the populated places.

Each land clearing or improvement project has its own characteristics. It cannot be achieved by using just a single object but encompasses a variety of tools and heavy machines. Hence, first and foremost the Land Survey is required to gauge the amount of land improvement required. The following major factors should be considered; the characteristics of the land and its size, the intended use of the land, the type of the material to be removed and the cost involved. Appropriate planning and attention to detail will help to protect water and soil resources while keeping the costs to minimum.

The work of clearing can be divided into three phases as light, intermediate and heavy clearing and each of this will require different type of equipment. Light clearing involves surface cutting, undercutting, heavy disking, chemical sprays (herbicides), and controlled burning. Surface cutting is achieved by using heavy duty sickle mowers, large rotary brush cutters and stalk cutters. While undercutting is accomplished by using different type of straight and V-shaped blades mounted on tractors and can travel 10-18 inches below the soil surface which loosens and removes the roots. Heavy disks or root rakes are used to cut and remove the material to prepare land for cultivation. Finally the land is sprayed with herbicides and subjected to burning.

 

Heavy clearing is done using different types of expensive heavy equipment each of which require different amount of horse-powers to operate. Skidders, Bulldozers, Excavators, Tractors and Backhoe are used for land clearing. Skidders are very stable and are considered to be a great tool. However, a skidder cannot dig or grade and a person has to get out of the machine to grab onto the debris. Bulldozers are powerful machines and can effectively remove the stumps and boulders. However, bulldozers generate vibrations and run into maintenance problems. The replacement parts of a bulldozer are also expensive and they results in loss of top soil. Although, Excavators are the most powerful and are very stable during working conditions, however they are slow to operate. Tractors equipped with heavy-duty rakes are used for felling, raking, and withdrawing extremely heavy material having stem diameters up to 72 inches. Backhoe are considered to be extremely versatile, they work fast, dig deep, lift high, and capable to loading very heavy things. In addition, one may have to also use pair of forks and front end loader rack onto a backhoe. However, the disadvantages are that it can get stuck, get flat tires, one has to raise and lower the flaps and move the machine a lot.

 

The selection of these heavy equipment involves learning the type, brand, model and price. In addition, one has to know the limitations of each equipment, their maintenance and how fast the replacement parts be obtained.

 

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