We usually have a belief that it is only the big construction companies that can make most of the monies in the construction industry. However, this belief of ours is no longer true and even small time contractors are able to make good money by taking small projects. Unlike big construction houses, who find it difficult to get projects, small contractors do not experience this issue so severely and always tend to get few projects at quick intervals. Projects such as constructing a small road or clearing up the garden are works that are not so difficult to get. However, these days many people tend to do the work on their own; but at times, they need help of professionals and this is when the contractors come handy.
The prerequisites that a small contractor should always keep in mind are mentioned below.
Should have good sales and marketing segment:-
In order to keep your business moving, it is very important that people should know about you and your business. If you want to keep your business limited within your city limits, you then have to ensure that the sales and marketing team of your company approaches people who may need your service. Since you are a small contractor, not everybody may know about you and this is why you need a strong sales and marketing team that will pervade the word to people and also check if there is anybody who is looking for a service that you are offering.
Goodwill of your company is the key for expansion:-
If you have made a good reputation in the construction market, be rest assured that you will keep getting work. Other than having a strong marketing team, goodwill of your company plays a key role in determining how soon you will be able to expand your business. Like every other businessman, you would want to expand your business and in order to do this, the goodwill can be very crucial. It is therefore essential that you maintain the quality of your work and try to satisfy your clients. Your clients will want you to give them excellent work by charging less. It depends upon your skill on how you negotiate with them and get the money that you deserve.
Have the right set of heavy equipment:-
A business moves on certain plans. You need to ensure that you incorporate the right set of heavy equipment in your business plans. Not having the machinery you need to get the work done will only lead to complications and that will cost you dearly. So before you start the job, do a survey of the field and check what you may need to complete the work. Also see how many days it may take to get the work done. You should not commit something and later on find yourself incapable of fulfilling it. According to the survey, you can arrange the equipment you may need for completing the job. Just in case, you don’t have heavy equipment with you, you can try to get it on rent so that it doesn’t cost you a lot.
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Modern technology is the need of the day. The industry and our businesses will not flourish if we do not accept technology as a part of our daily lives and the incorporation of it in our businesses will take it to the next level. The growth of the business is to a larger extent dependent on how open we are in adopting technology in our lives and simultaneously in our business. For people who are owners of big construction companies, they might find it extremely difficult to go to every jobsite that is running parallel in different places of the state. It is virtually impossible for him to make a trip to each of its jobsite if they are located in different cities and states. So what can he/she do to get an updated report?
Well, he/she has 2 options. They can either rely on the reports that are sent to them by their men/women or can put in a camera to check in the status of the work in a timely manner. Now again it is not possible to put cameras all over the site and the cameras will all be stationed at one place. They will not be moving which will not portray the correct picture. This means that installing cameras at different locations on the jobsite will not do any good to them as long as they have something that can move throughout the location and can give live updates to him. Here comes the importance of drones. These flying machines can be used to get live pictures of the work happening on the jobsite. The camera of the drones will be always rolling allowing the business owner to see all the progress that is happening on the site and then compare it with the report he/she has received. It is just that the drones are used to provide ground report which can be then compared with the report he/she has on his table.
Allows you have better control on the project while you are holidaying/vacation:-
It is a fact known to every person in the construction industry that owners of big construction houses do not get to spend quality time with their family. It is always business for them and at the end of the day they are so tired that they have nothing left for the family. Now suppose that you have a long planned holiday/vacation and this time you have decided to finally take your family for a vacation. However, you also have an important project going on whose progress you can’t miss to check. You can make use of drones to catch live pictures and correspond with your employees on the ground. In this way you can spend time with your family holidaying in Hawaii and also keep a close watch on the progress of the project.
Using drones can prevent delays in the project:-
By getting regular live pictures, you will be able to identify mistakes happening on the jobsite. You can jump in straight and point it out to the respective supervisor and ask him to correct that rectified. Had this skipped your attention, it could have taken the project on a ride and have caused delays in its completion.
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There may have been few instances where you are not paid for the work done on a project. You have been given some or the other reasons by the construction company that you found to be absolutely vague and got the hint that you will not be paid for your work. Situations like these are nothing but a nightmare for small contractors. Firstly, the small contractors do not have sufficient money to pay the workers and if at all they manage to secure the money from any of their sources, they experience a hard time to meet the other operational expenses of their business. On top of that if they see the construction company to be defaulting on them, they can’t imagine anything worse than that. In such a situation, the only thing that they can do is place a lien on the property that will disallow the company to get any loans or any sort of finance on the property.
You can’t place a lien on any property just because you want to. For that, you have to approach the court and put forth your matter to them. Take help of a competent attorney who will guide you with the legal proceedings and also will fight the case for you. Once the court acknowledges and sees that you owe money on the property that will allow you to place a lien on the place. Now once you get the lien, you also get the legal right to sell the property and claim the due amount.
Now the kind of evidences that you can submit to the court is the invoices of the materials that were bought for the construction of the building in the property. Additionally, you can also show the bills that were incurred for the wages you paid to the workers. These evidences will certainly make your case strong and you can hope that the court will rule in your favor. However, there is a timeframe for placing liens. You need to place the lien within a stipulated period of time or else the court will not entertain your plea.
Once you get the ruling in your favor, you have to inform your debtors about it and send a copy of the notice to them. This will give a strong message to your debtors that you are just not letting them go and placing a lien can bring trouble to them. They might then intend to pay you in full and once you are paid in full, you should drop the lien by informing the court that you have received the money in full.
Though placing a lien can work as a tool in recovering your dues, this should not be misused by you in any manner. In case, you approach to the court stating that you have not received the money whereas you have been already paid, it can backfire hard on you. The court may direct the authorities to put you behind the bars. Hence any such intention should be strictly avoided.
By Lonnie Fritz Heavy Construction Industry Consultant Caterpillar Inc. (Guest Post)
Most contractors agree that project success is largely determined by four factors: time, cost, quality and safety. But there isn’t a “one size fits all” approach. The same is true of technology, in that each company’s journey is unique. In this article, Caterpillar will help you take a quick look at key areas where technology can make a difference.
Get Rid of the Paper Trail, Design a Digital One
Running from the jobsite to your office or trailer to update, print and distribute information eats up time, one of your most critical resources as a project manager. Here at Caterpillar, we say stop chasing the paper trail and instead adopt cloud computing. The cloud platform simply means that users with an internet connection and approved access can get “live” information from anywhere. Do you check your email on your smartphone? You’re already using the cloud. Listed below are eight quick ways the cloud can save you time, money and headaches:
Rapid decision making as personnel can connect with each other from almost any location.
Faster response time to RFIs (Requests for Information), change orders and purchase orders.
Snap and send photos of jobsite activity.
Check manufacturers’ instructions.
Confirm calculations.
Instantly look up specifications and special provisions.
Quickly check contracts.
Track weather.
Get Your Crew on the Same Page, Even with Different Devices
Smart devices like phones and tablets let employees access and share information with the tap of a finger. 72 percent of construction contractors use smart phones, while 50 percent use tablets. One contractor found that superintendents using a voice-to-text application could save at least 30 minutes a day in preparing reports. There are a wide number of apps that can be useful for your team in the field; here are some of the most widely used:
Permit apps (for sending and receiving permits).
Resource tracking apps (tag assets and monitor their location).
Inventory apps (monitoring items that are depleted & restocked).
Safety apps (notification system to alert foremen of problems).
Resource tracking apps (for documenting and submitting employee hours, progress quantities and other day-to-day activities and metrics).
Reduce Risky Business on the Worksite
New technologies (like Cat® DETECT, a Cat Connect Technology) have become available to safeguard worksites and better manage risk. One in ten construction workers is injured on worksites every year. One of the most common accidents on a construction worksite is being struck or trapped by equipment or vehicles. Blind spots and backing up accidents account for 25–50 percent of the total. Here are some of the technologies we recommend that can help prevent such accidents from occurring:
Object Detection technologies
Complete object detection systems include back-up cameras and pulsed-radar object detection. Cameras give operators a view of what is typically their biggest blind spot, and radar identifies objects and people hidden from the operator’s view and sounds an alarm.
Fatigue Detection technologies
Fatigue detection is one of the most recent advancements. A camera installed in the cab monitors pupil size, blinking, and how long eyes stay shut. If the system senses the operator is falling asleep, an alarm sounds and the seat vibrates
“Smart” wearables
Safety gear with Radio Frequency Identification (RFID), sensors and bio-monitors have all hit the market within the last several years. The most common are RFID systems that alert workers and equipment operators when they are both moving through a work zone. Wearable devices are now reading heart rates and body temperature to fend off potential medical incidents.
Stay on Track with Telematics
Most people can use basic telematics information — machine operating hours, location, fuel consumption — to produce measurable improvements in operating costs. 80 percent of new equipment has telematics built-in, so all that’s required is activation. However, only 17 percent of contractors are using telematics within their projects. Telematics provide multiple cost saving benefits:
Location features help keep equipment and people safe by alerting operators and sounding proximity warnings.
Telematics can help optimize utilization—because equipment doesn’t get rented when it’s not needed or isn’t parked and forgotten.
Most OEMs provide apps that allow you to access information via smartphone or tablet, so you can check on equipment condition, fuel burn, idle time or service hours.
Condition monitoring alerts help control maintenance and repair costs by reducing downtime.
Machine Control & Automation Adds to Your Bottom Line
The introduction of control technologies for grading, compacting and measuring payload has given construction companies more ways to increase production and enhance operator performance. Productivity and cost saving advantages come primarily from:
Improved accuracy of machine–guided buckets and blades.
Increased accuracy of automated “assist” features that make the operator faster and more consistent.
Reduced man hours because fewer workers are needed to check progress/complete jobs.
Elimination of rework, tasks are completed right the first time.
Fewest passes achieve proposed grade efficiently.
Optimal number of passes reach compaction target(s) without over or under compacting.
Reduced cycle times and machine wear due to payload technologies eliminating over and under loading of hauling units.
Increased safe operation because operators are more aware of activities and individuals around them.
Data-driven estimating and planning that accelerates payback periods on technology investments.
Caterpillar is constantly developing and refining advanced technologies to help you make your equipment more productive and efficient. The faster you recognize technology as an essential part of your operation, the faster you will begin to see a difference on your worksites and your bottom-line.
There has always been a huge demand for houses all across the United States. However, it has been seen that the construction company is finding itself short of workers and this is why the end users have to wait for longer than they were told. The construction workers are of the opinion that the housing market is to a larger extent quite unpredictable and a major blow can come at any given point in time. This will lead to job loss and they have to look for other means to continue their livelihood.
They no longer want to be a part of the construction industry that is pertaining to the housing market. Well, the construction workers should understand that ups and downs are part of any industry and one should not just return because it is uncertain. On the contrary, they can make full use of the opportunity where they can demand more money for their work. As the construction company is already running late in giving possession of the house, they will not mind a slight increase in the wages to the workers.
If we go as per the statistics, we will find out that the job opportunities of a construction worker in the housing market is the highest since 2007 and they should waste no time in grabbing this opportunity. The work of a construction worker can’t be supplemented by any other person and therefore the need of the workers can really give them a good jump in their wages. As per the Home Builders Institute that prepares construction workers and train those in constructing houses believe that the shortage of labor is getting worse as there is a huge increase in their demand.
The repercussion of this has been felt on the US economy as well as it is struggling hard to get through with the problem of scarcity of construction workers in the housing segment. The most cases the industry runs through a sluggish state due to scarcity of demand but in this case it is almost the opposite. It becomes quite important to win back the confidence of the construction workers because once that is done and workers start flocking in, they will build homes and the construction companies will start meeting their deadlines. The shortage of workers has been mostly felt in hot residential zones where people have money but they do not have houses as the construction companies are unable to give possession at the stated timeframe. The construction companies in such location are seeking for extension in deadlines so that they can arrange workers by paying those more and can get the work done.
Other than this, construction companies also want to make the most during this troubled times. They are not paying heed to small housing segments and are more focused on expensive markets. So the starter homes are going through a rough phase. However, it also seems to be a good opportunity for new construction companies to make their presence felt. They do not have to look to get big projects and can work on building homes. All they need to do is manage the construction workers well and can make it big in this segment of the industry.
Sales constitute a major role towards the making of any company. If you have a good sales team that believes in the product you make, then your company may probably not see many bad days irrespective of any phase of the market. Sales play a dominant role in any sector as you got to sell things that you have produced and you got to do it real quick. Products staying with you for long is a not a good sign of development. You need to sell it fast in a market where others are able to sell things at a steady pace. Having a sales team that is experienced enough to sell apartments (if you are into construction of apartments) is a huge plus point. No doubt that you have to pay them handsomely but you should be pleased to do so if you have a team that delivers.
Many construction companies find it immensely difficult to sell apartments in a sluggish market condition. However, there are few companies that are clearing their stock despite of the poor market condition. Industry experts reckon that the sales team you have has a major role to play in getting the stocks cleared. It is also very important to set up some standard for the sales team to follow. A salesman can go to any level to sell a product. He may even misguide his customer leading to several complications in future. It is therefore very crucial that you set up some standards for the sales team and ensure that they all carry out their responsibilities within the framework.
The sales team should believe in your product:-
Be it selling heavy equipments or residential apartments, the sales team should believe that the stuff they are selling is one of the best in the industry. That does not mean that they should start believing that whatever they are selling does not have any drawbacks. If a customer highlights a drawback, they should be in a position to take the feedback positively and if possible can counter it with logical reasoning. If he does not have anything to say then just take the feedback and move that up to the higher level.
A good salesman will never have unwanted debates:-
Having any kind of debate with the customer can lead to a no-sell. On top of that, it may even irk the customer and he may pass it on to others. This will only make things more difficult. Construction business runs mostly on goodwill and if that is tarnished it is rather very difficult to regain what you have lost. Customers may usually have issues with the amenities provided in an apartment. A sales guy can handle the situation by having a word with his supervisor if anything can be done with the amenities part and convey the same to the customer. The customer will be content with the fact that you have at least tried to work things out for him.
Not every industry has its golden era forever. There are times when they see ups and also times when they also have to see the downs. You name any industry and you will see people related to it cheering during the good times and struggling when things are not so good. So as a business owner it is crucial that you make the most when things are positive in your sector and stay low when things are not doing well. This may not be the only mantra but is certainly an important one when it comes to finding success in any industry. We have often heard the saying “Make hay while the sun shines”. It makes a lot of sense in an industry that is dynamic and has lot of competitors all wanting to make the most. Construction industry is one such sector where people are vying for almost anything and everything.
Construction business owners know one thing for sure that it is pointless to struggle to get business when the overall industry is not performing well. For some it may sound weird when they get to hear that the construction industry is not doing well. They may have the belief that it is most rewarding industry in today’s time and for some reason can never see any downslide. Well as a matter of fact, every industry has a phase when it has to see the bottom and so it is with the construction sector as well.
Companies should have patience:-
Many new companies wind up their business when they do not see work coming. They probably get into the sector when it is trending downwards and since they do not have work in hand, they can’t take care of the operating costs and are compelled to give it up. Well for such enterprises, the only advice would be drastically cut down on the operational costs even if it means running the business from your house. If you have to do that, you should do so. Having an office and paying rent for it can become too strenuous for you to handle especially when things are bad. Therefore working from home becomes the most viable option and also cut down on the workforce. Stick to any small project that you get and learn to work on heavy equipments so that you can operate the machine on your own. This saves the cost of employing an operator.
Be aggressive when the sector is doing well:-
As understood by many, construction sector rewards you well when it is at its peak. You can take the risk and work aggressively to make the most. While you making profits, you got to remember to save resources for times when the business may take a downturn and you have to keep it afloat using those resources. This is why try and be aggressive when others are minting because you also will make lot of money then.
Today the heavy equipment industry is in great demand due to the huge growth in urban population and infrastructure projects. Heavy construction equipment is a critical tool for any construction project since they reduce the labor cost and time. A variety of these are present in market to serve different purposes of heavy construction work. Although all may not be required, it is imperative for the owner/builder to buy a sizeable amount of these equipment to ensure that work proceeds smoothly.
The existing heavy construction equipment market is dominated by large firms such as Caterpillar Inc. (U.S.), CNH Global N.V. (The Netherlands), Hyundai Heavy Industries Co., Ltd. (South Korea), Volvo Construction Equipment AB (Sweden), JCB Ltd. (U.K.), Komatsu Ltd. (Japan), Deere & Company (U.S). These companies provide advanced heavy construction equipment and by gaining considerable expertise and experience over the years, they have optimized their processes and practices to become even more efficient. These key players use different strategies such as expansions, agreements, contracts, joint ventures and partnerships to garner share in the market. They also focus more on the emerging markets in developing countries with inclination towards industrial growth. They also rely on regional and local distributors to increase their profits and presence in geographical markets. They also acquire companies or other business to meet the demands of heavy construction equipment.
There are challenges faced by these key players too. There is demand for machines which are highly efficient, safe, and reliable, with highest productivity and lowest environmental impact. Further, if fitted with the latest technology which is user friendly and with numerous applications it becomes more popular among users. In addition, there are changes in the heavy equipment industry due to advent of big data, analytics and advanced technology. Some new entrants in the market produce complex products using big data analytics which are cost effective, hence are in demand. Further competitive business analytics allows new analytics to assist in pricing, budgeting, improving management of demand and supply, minimize costs and risks and maximize profits. This has lead to a tough competition within the heavy equipment industry. Industries which are not interested in being tech-savvy will find themselves difficult to survive in such a competitive market.
To retain the position of a being a key player in heavy equipment industry, one has to have key strategies such as:
Product and technology: Top priority of many key players is innovation of their products. Hence, they invest more in research and development activities.
Improvement in operations: global expansion increases level of complexity which makes it important to improve basic capabilities and processes.
A Go market Approach: to expand operations and business in the developed countries.
In addition they should have winning strategies and should be prepared for the new changes in market. Although there is competition in heavy equipment industry, yet the companies which will have right business strategies, innovative products and can adapt to changing markets will survive and grow to make huge profits.
In addition they should have winning strategies and should be prepared for the new changes in market.Although there is competition in heavy equipment industry, yet the companies which will have right business strategies, innovative products and can adapt to changing markets will survive and grow to make huge profits.
A construction company requires businesses to survive and they get their businesses from the reputation they have earned for the last many years working with different clients. In the construction industry earning a goodwill is extremely difficult and it is more difficult to maintain it. One mistake (you do not know if the mistake is big or small) can tarnish your reputation and has the potential to bring down your business to a new low. If a thing like this happens, you will have a real hard time to survive and bring it up again. This sector has less friends and more foes.
Animosity in this industry is quick to happen and can turn real severe with bad results. It is very imperative to have cordial relations with your business clients, with your competitors and with people who want to get associated with you in your business but you want to stay some distance away from them. Oh yes, you definitely want to stay away from some people as you may see them to pose possible complications in your business. However, you still can’t manage to upset anybody or else you seem to be in a position where you would be inviting problems.
We will be talking in length about what one needs to do to establish a good reputation and keep the good name to continue getting more businesses.
Company should have a vision:-
You will get clients when you show them that you are a company with a vision. You need to have the right set of heavy equipment, operators and workers that knows their work well. A good strategy is always important to put things on the right track. The better you lay down the strategy, more are the chances that you end up getting good businesses. If you have your things organized, people will take that as a sign of a serious businessman and someone who is in this trade to become really big.
Track your plans and ensure that they are acted upon in a timely manner:-
Creating a strategy isn’t enough but you got to follow it religiously. If you act upon your plans and implement them, you are getting yourself closer to creating a goodwill that will eventually draw upon more businesses making your company a highly profitable one. There are instances when you see the need to amend your plans. You should be quite flexible with any kind of changes that comes up your way at any point in time. At times, you have to change a part of the plan completely. You should be ready for all the challenges. If you are able to keep a control on these few things, you will see your business is completely in your grasp and your clients will have the confidence to invest their money in your company by giving projects to you.
Take work that requires a sense of responsibility:-
If you take up projects that requires you to show some responsibility and you succeed in completing it in time, you manage to set up a very good reputation for your company. Work like these will take you a long way ahead in life and will help you to establish the goodwill that many companies have only dreamt of making.
By: Jason Hurdis–Sr. Market Proffessional for Caterpillar Inc.
How many times have you heard the saying, time is money? That old adage has never been truer in the construction industry than it is right now. But today we can update that passage to say, “tech is money.”
Every construction company owner faces pressure to control costs and operate at lower profit margins. As you evaluate your own business operations, technology is something you should consider. By identifying areas where you can become more efficient, you can determine the types of technologies that will bring the biggest benefit to your organization’s bottom line.
Based on customer experiences and data, Caterpillar is constantly developing and refining advanced technologies to help make your equipment more cost-effective and efficient. CAT Connect technologies and services such as, LINK, GRADE, PAYLOAD and EMSolutions all help increase profit margins and worksite productivity. Here are several ways the right technology can help make your company more profitable:
Control fuel costs
Fuel consumption information is some of the most valuable information you can collect and use as a construction company. Idle time can represent 40-50 percent of a machine’s total running time. Tracking and reducing idle time in your machines with CAT technologies can reduce fuel costs by as much as 50 percent.
Such technologies enable insights that wouldn’t otherwise be available to you. If fuel consumption goes up suddenly during a job, it could signal a bigger issue. Here are just a few problems CAT technologies can flag and help you uncover before it becomes a real problem.
Dirty fuel injectors
Plugged/Contaminated air filters
Defective sensors
Faulty Engine Control Modules
Worn piston rings or leaky valves
Slipping clutch or transmission
Improper lube oil viscosity
Undersized machine, bucket or work tool
Low tire pressure or worn tires
Aggressive or untrained operators
Manage maintenance intervals
Analyzing the data our technologies provide can help business owners increase the efficiency and cost effectiveness of your maintenance schedules. The longer you can effectively stretch maintenance intervals, the more time and money you can save. The importance of planned maintenance – and the profitability it enables – cannot be overstated. CAT technologies can help you interpret your data, provide monitoring services and help you develop the most profitable maintenance schedules for your fleet.
Increase machine utilization
It’s hard to see patterns or trends when you have multiple machines working at multiple worksites. With data produced from CAT technologies, business owners can make decisions on machine activation and optimization from one central point. If a truck is sitting at idle too long waiting to be loaded, you may find there is so much idle time between trucks in your fleet that you can park one of them.
The data produced by CAT technologies can identify underutilized assets in your fleet, and can help managers eliminate the need for rental machines while also providing them with the information they need to forecast future equipment needs.
Increased uptime
CAT technologies can provide companies with fault code alerts, which are messages delivered when a machine is working outside a predetermined set of parameters. These alerts cover machine-specific situations including engine over-speeding, high-speed directional shifts and changes in temperature and pressure. The benefits of receiving alerts like these are that they notify managers when maintenance and repairs are needed, which reduces unscheduled machine downtime and equipment repair costs.
Improved bidding accuracy and competitiveness
CAT on-board systems allow companies to submit tighter, more competitive bids because of the data they provide. Companies today don’t need to pad their fuel numbers when bidding for a project; they can calculate exactly how many gallons per hour they need to get the job done.
Such technologies also are proven to increase materials savings by up to 10 percent, and decrease rework by as much as 50 percent. Using fewer materials and spending less time on rework allows companies to lower their bid prices, therefore, giving them a leg up on their competition.
CAT technologies are reshaping the process of using, managing and owning construction equipment. Construction companies that want to stay ahead of their competitors for projects both now and in the future must adapt and implement the proper technologies. It’s the best way to become more efficient while maintaining margins, quality and safety. Why give the competition the edge when the technologies present profitable opportunities? Because tech is money, and a more efficient fleet equals a better bottom line.
