Does Your Company Have a Drug Policy?

Every company should have a strict drug policy in place including new employee drug screening, random drug testing and, of course, post incident or accident drug testing.

A well written policy for drug screening upon employment is the first step in a good company plan to protect yourself and your company from loss.  Screening all new hires should not only be good for your risk management but will also go a long way in protecting your bottom line against losses.

Random drug testing should be performed 'randomly' and you should not single out employees based on unfair criteria.  Fortunately, you can establish the criteria and you can determine how you will choose who will be drug tested in a pool of employees and how often you will do these random tests. 

For example, you could specify that employee names will be randomly selected from a list of 'all' employees on a quarterly or monthly basis and then you could set up a random number generator in Microsoft Excel with the RAND function in a spreadsheet and keep copies of all random selections for your records.

  

Record keeping is also very important and you should have a separate file for all employees for health related records.  The 'Construction Administration Handbook' explains the need for 3 separate files for employees (and the I-9 should not be filed in any employee files).

Using the same facility all the time for screenings will help you get a better pricing structure and will also provide you with the same standards for results.

Other than random screening, you should also have a policy for post incident and post accident testing.  This policy should be strictly adhered to and should include alcohol and drug screening.  Your insurance companies, general liability, auto and workers comp,will all want to know that you perform these tests immediately following incidents and accidents.

Make sure you have any policy reviewed by your legal counsel so that you are safely within the guidelines of employment law.  Don't wait until something happens to start testing, you could lose a lot more than the money that you will pay to the attorney to put this policy in place.

If you don't know where to start on policy and procedures for your company, contact myself or someone who can help you get these in place as soon as possible to avoid loss of money, health or even worse, some one's life.

Protect your company by getting these in place today.

Charlene S Reed, Owner/Author

www.MyConstructionOffice.com

"Construction Administration Handbook"

Project Managers Must Understand Project Accounting

Project Managers are tasked with overall project planning and scheduling, resource allocation, project accounting, control, technical direction and ensuring compliance with quality standards to meet all deadlines and budgets.

All of that to say, project managers are more than superintendents who wanted to come in out of the field and work in an office environment.  Not to say that superintendents can't or shouldn't be brought in to the office, just to say that a person who is given the title of "Project Manager" needs to have all the traits and education of a true project manager.

Project Managers need to understand the dynamics of their project budget and the accounting including: 

• Project overhead costs,
• Corporate overhead percentages,
• Labor burden rates,
• Costs to operate equipment,
• Resources that will be used on the project from the corporate office (safety, O & M Manuals, Warranty Manuals, vehicle maintenance, Submittals, etc.)

Where I see the most revenue spent that is improperly tracked is labor, equipment and soft costs.  Project Managers must also consider the soft costs on the project including:

• Insurance (General Liability, Auto, Umbrella, Professional Liability, etc),
• Legal Costs and Fees,
• Financing costs,
• Engineering and Architectural fees,
• Pre-construction expenses including bid costs,
• Post construction costs and warranty items.

Project managers also need to understand the billing for their projects and be able to bill by percentage, amount complete and project for trades that will complete items by a specific day or date. Many project managers can tell you what is in place at the job site but have no idea what that equates to in project line item dollars.

Using a program such as Microsoft Project or Primavera Suretrak will allow you to not only keep a project schedule up to date but will also allow you to put dollars to those time lines which will change as your schedule changes -- as long as it is kept up to date.

Construction companies need to have regular accounting meetings with their project managers to go over the schedules, budgets and expenses of all projects to ensure customer satisfaction and company profitability.  Companies that don't have regular project manager/financial meetings will not survive when even 1 project goes bad.  

How long can a company survive with just 1 project that is behind schedule and costing them in extended conditions that are not reimbursed by a customer?   How deep are your pockets?

Charlene S Reed, Owner/Author

www.MyConstructionOffice.com

"Construction Administration Handbook"

What is Your Business Plan? Is It Written, Current and Complete?

A business plan should reflect your plan for the next year, the year after that and all the way through the next 5 years.  Business plans are a critical part of your business and are required in some federal government programs.

Things change during the progress of a business. Business plans should be adjusted to reflect those changes on a regular basis. New goals should be set, new marketing plans and your financial data and projections must be included as well.

Items that are usually included in your business plan are:

• Introduction to the company (an overview),
• Company description,
• Personal financial statements for all owners or shareholders,
• Company financial statements,
• Cash flow projections for the next two years,
• Profit and loss projections for the next two years,
• Break-even projects,
• Sales projections and revenue forecasts,
• Marketing plan for the next 2 years including advertising plan, 
• Fixed costs forecasts,
• Loans and repayment plans,
• Projections of product developments, wholesale sales, manufacturing projections or project development projections, depending on your business type,
• Facilities that you are working in -- description and status (rental or owned, outstanding loans on property, etc.)
• Market research into development or projects,
• Description of services or products,
• Management bios and position held in the company,
• Patents, copyrights or other ownership rights, 
• Capital spending plan,
• Business Accomplishments,
• Competition in your market and market growth projections,
• Owner's ability, experience, education, and background,
• Business Risk Analysis or a Major risks you face in your business and a plan to deal with these risks should they arrive,
• How and where you will find qualified employees for your business,
• Resumes of key personnel and owners.  

If you are looking for funding, you would want to include this request in the business plan as well.  You will need to explain how much you are requesting, how it will be utilized and a re-payment plan.

Your business plan should be tailored to fit the reason you are preparing the plan.  If you are preparing the plan for yourself, you will include details that you would probably not want released to the general public.  

If you are preparing the plan as part of a federal government program such as the 8(a). Economically Disadvantaged, women owned, service disabled, veteran owned, small business or other programs, you will want to make sure it fits their requirements.

Whatever your reason for preparing your business plan, make sure you know what is required to be included.  If you don't know or don't have someone who knows how to prepare one, get in touch with someone who can help you get your business plan completed and who understands what is required in the different situations.

Whatever you are doing in business, get a written business plan in place today.

Charlene S. Reed, Owner/Author

www.MyConstructionOffice.com

Safety is Every One's Business

Safety is critical to any company's survival.  Accidents and injuries can impact your company in more ways than just lost work time.  Your workers compensation insurance company will increase your premiums and you could be placed into an assigned risk pool if your company has too many incidents or injuries.  

An assigned risk pool will nearly double your average premiums for workers comp insurance if you are forced into one.  Not only would you pay a higher price for workers comp but you could be forced to pay for lost time to workers who are injured and not able to work and for medical expenses in some cases. 

Every company needs someone in charge of the safety of your workers both on and off the project sites.  No matter the size of your company, you should have at least one person who is responsible to keep everyone up to date on training and safety.

You may choose to out source your safety program, in which case, someone in your company will need to make sure that people are being scheduled for training and attending.  Whatever your company decides to do, make sure your employees are properly trained and that they are adhering to the prescribed safety standards.

You should have employees trained in either the 10-hour or 30-hour safety training.  Every construction job site should be having weekly on site training or "Tool Box Talks".  Every other type of business should have weekly safety meetings pertinent to your specific business type.

In construction, you should also have a person on site, whether it is your superintendent or a safety director, who 'patrols' the site while anyone is working on the site, who watches to make sure there are no safety violations happening.  If there are safety violations occurring on site, they should be stopped and noted, with violation notices going to the company who violated the safety policy.

In other business types, you should have someone on site that watches employees, visitors and customers for violations or unsafe conditions.  Unsafe conditions should be corrected or taped off until corrections can be made.

Safety is every one's business in any business.  Making sure your company, it's employees, visitors and customers are in a safe environment is your business and failure to adhere to safety in your business puts your company at serious risk of loss.

Get your safety plan in place today -- don't wait until something happens and you suffer loss or worse some one's life is changed forever due to an avoidable accident.

Charlene S Reed, Owner/Author

www.MyConstructionOffice.com

What is Your Disaster Recovery Plan? Does Your Business Have One??

Do you have a Disaster Recovery Plan in place in your company?  Does your staff know what it is and what to do to keep it up to date?  How long can you go without your company's data and survive?

If you lost all of the data on your server and all of your project files,  how would you survive?  Could you piece together how much is owed to you and who you owe?  What about employee records and payroll information?  Your business and your income could suddenly cease to exist.

A disaster recovery plan is a necessary part of your business and is only as good as the person or people who keep the plan up to date.  What and where is your plan?  Do you have one in place?  If not, you are taking a huge risk and stand to lose more than just time away from your business.  You stand to suffer a huge financial loss.

What happens in your business if disaster strikes?  Flood, fire, hurricane, tornado, theft, server crash, or any other disaster that would otherwise destroy your records.  You need to have a plan in place in case of a disaster so that you can restore your data and your business back to what it was prior to the disaster so that you can continue to go about business as usual.

You should at the very least have a back up copy of your data off site.  You should have a scheduled back up time, preferably daily of your data files and you should have a way of verifying the validity of your back ups to be sure you have a viable back up away from your primary place of business.  

If you don't have someone on site to do your back ups daily, you might want to look up a company that can do it for you and get it set up.  There are plenty of companies that will get you set up in the 'cloud' so that your back ups are happening.  There are other advantages to cloud computing such as access to your data files from anywhere and the fact that they back up to redundant servers in different geographic locations of the country.

Timberline, Quickbooks and other accounting software should be backed up everyday regardless of any other scheduled back up you have in place.  Get our disaster recovery plan set up today.  Don't waste another day with the fear of disaster looming over your business.  

Take the time today to get your business disaster recovery plan in place.

Charlene S Reed.Owner/Author

"Construction Administration Handbook"

www.MyConstructionOffice.com

Daily Reports Are a Legal Document

Why do daily reports daily on your projects?  There are several reasons why daily reports should be done daily.  The most important reason is that these are legal documents and should be done the day that they are dated and signed by the person completing them.

Daily reports are critical and should be maintained as part of the project files even after the project is complete and for the period following the longest warranty on the project or until all issues on the project, including lawsuits, are resolved.

Some of the items that need to be included on every daily report are:

• Date and day of the week (Monday, Tuesday, etc.)
• Temperature and weather conditions (cloudy, rainy, etc.)
• Name and location of the project
• Project number as assigned by the home office and other identifying numbers from the Architect or Owner
• List of subcontractors on site and how many workers from each company
• Visitors to the site and what they were there for (IE: meeting, inspections, etc.)
• Inspections or testing performed by your company or others on site
• Working hours on site (some projects require that you keep track of all hours worked by all employees and a cumulative total on the project - mostly Government)
• Deliveries to the site or pick ups from the site - materials or equipment -- if equipment is called off, you need to note the call of number for future reference
• Safety items or issues, warnings or citations
• What work was performed and what needs corrected or completed
• Correspondence received or sent, including safety notices or 24/48 hour notices, etc.
• Any photographs taken should be noted and labeled
• And any thing else that happened at the site.

The report, once completed, should be signed by the person completing it and scanned into the project file or have an electronic signature attached to it and filed in the project file.

Some software will allow you to customize reports or documents such as Sage Timberline.  Timberline custom reports can be developed to track the things critical to your company's success including daily reports.    

In a legal proceeding or in any issue where weather or other delays take place, these records will prove invaluable to your cause.  Make sure these are done daily by your team on all projects.  

You or someone on your team needs to make sure that these important documents are completed on a daily basis and that someone is reviewing them for accuracy and completeness.  

Don't let anyone save them all for the end of the week because important details will be lost.  I find that about 75 - 80 percent of the companies that I work with will allow their superintendents to wait to complete them until they have "spare time" -- this is a very bad habit and bad habits such as these can cause your company to fail or lose contracts, bonding, money or your reputation.

Establish a policy and procedure for completion of your daily reports and make everyone accountable for their duties in the process.  Don't allow these 'little things' to become big issues in your progress.

Daily reports are something that I stress heavily in my book and I can't say it enough, you need to be sure your company is staying on top of document management.  If you need help in these items, contact myself or someone else to get the help you need.  Don't put your income and company at risk of serious loss or failure.

Choose to succeed -- Document EVERYTHING ! !

Charlene S Reed, Owner/Author

www.MyConstructionOffice.com

Reports Your Business Needs to Review Regularly

"Successful people form the habit of doing what failures don't like to do. They like the results they get by doing what they don't necessarily enjoy." - Earl Nightingale

No one enjoys reviewing reports and running through mounds of papers to try to make sense of where your company is from 10 or 12 different reports.  We just want to be told in one page or less that things are great !  So many software packages are lacking in this area while others have a custom dashboard such as Timberline.  If you are using Timberline and don't have the dashboard set up, get it set up.  With some tweaking, you will be well pleased.  

That being said, there are some reports that you cannot get away with not seeing on a regular basis.  A list of the reports that you, as a business owner or department manager, should see on a weekly basis are:

• Accounts Payable Report with Aging,
• Accounts Receivable Report with Aging,
• Job Cost Reports for all jobs individually and collectively,
• Updated Job Schedules for all jobs,
• Cash requirements report (projected cash requirements report), 
• Check Registers for all accounts,
• Correspondence (If you don't see it everyday),
• Status reports on any legal issues.

Other reports that you need to review on a monthly basis (at a minimum) are:

• Budget vs. Actuals,
• Monthly progress and goals reports,
• Marketing and business plans,
• Bank Statements (Including canceled checks or thumbnails),
• Financial statements (Balance Sheet, Income Statement, Trial Balance),
• Cash flow projections for the next 6 to 9 months,
• Projects list - completed, pending, bidding, current, negotiating and new prospects,
• Bond capacity and availability.

These reports would be a minimum list for review and you can do these as part of a meeting with your staff or prior to meeting with your staff.  Every company should evaluate where they are on a monthly basis so that they are informed and so that they can make informed decisions when looking at future projects, purchases or other expenditures.

Laying out these rules for yourself and your staff will set up good habits that will prove successful for your company.  Without setting up standards for your business, you risk certain failure at your own hands.  

Ensuring that your staff meets or exceeds these standards will help you in planning for future growth.  If you need help with setting up these types of reports or systems, please call someone.  My company does this type of set up and reports for all types of companies including construction, retail, medical and legal.  The book I wrote earlier this year is for construction companies and can be found on my website.  

Pull your calendar for the next 14 months (now through the end of 2013) and start planning your meetings and on what days you want to get your reports to review prior to those meetings.  Don't let bad habits ruin your company, you have too much invested into it already.  Start today forming good habits for success.

Thank you and please share your thoughts and reports that you would add to the lists above.

Charlene S Reed, Owner/Author

www.MyConstructionOffice.com

PS:  Now is the time to get with your CPA to do year end tax planning if you haven't already.  Call today and make that appointment to maximize your tax savings NOW.  Don't delay, there is just over 2 months left in this year.  

Procrastination -- Putting Off Until Tomorrow What You Should Have Done Yesterday

"Do you know what happens when you give a procrastinator a good idea? Nothing!" - Donald Gardner

You probably at least smiled at this comment but procrastination in construction is no joke.  If you put off till tomorrow something that should have been done yesterday or today, you could pay a hefty price tag for waiting.

Not understanding or knowing what to do is even worse.  A lot of times people put off doing things that need to be done because they aren't sure what to do in a situation.  It's easy to lay aside those things that we are most uncomfortable doing, those things that are not easy. 

What are you putting off doing today?  What will it cost you if you wait too long to do it?  Why keep putting it off when you can dive into it and do it now?  

It seems like almost every office I walk into, there is something there that no one wants to do, sometimes several things.  In a lot of cases, those things that get stacked by the wayside have due dates on them and since no one wants to touch them, no one sees that the dates are closing in or have passed.  

Stop procrastinating now !!  Go get that stack of 'stuff' that you've been putting off and go through it, prioritize it and get it done.  If you can't get all of it done, then delegate or ask for help.  Once those things are out of the way, you can focus on other more important tasks at hand without those things hanging over your head and clouding your mind.

One reason I like using MS Outlook is the task list.  You can also assign reminders to the task list and you can check them off once they are completed.  Learn to schedule your tasks, even the ones you don't want to do, on your calendar or task list in Outlook so that important items don't get lost in your office.

Office procedures can be learned and in my company I find that I teach people where their priorities must lie to avoid or minimize the risks associated with running a successful business.  In my book, the "Construction Administration Handbook", I teach you what you need to know in construction including accounting, contracting, project management and documents management.

Prioritize your duties now, get those things done that you've been putting off.  Then enjoy your day doing the things you enjoy.

Charlene S. Reed, Owner/Author

www.MyConstructionOffice.com

Preparation is THE Key To Success

“One important key to success is self-confidence. An important key to self-confidence is preparation.” - Arthur Ashe   ~  Are you prepared for what is coming?

Preparation is the key to success in business as well as your personal life.  If you aren't prepared to take on whatever is coming your way in business, you stand a good chance that you will fail.  There is so much riding on the election but don't wait until it is over to get your plans together.

Planning today for whatever happens is the smart thing to do.  You should have a big picture plan and a contingency plan so that you are prepared no matter what happens.  Having a well thought out plan and involving everyone in your company will help to build confidence so that everyone knows what will be expected of them in either scenario.

What are you afraid of?  Get a plan together and a contingency plan and be ready and willing to change things up based on all the scenarios that could happen.  Find someone who understands the changes and improvements that need to happen in your company now while things are slower.

Whatever your company needs, find someone who can help you attain those goals now before it is too late.  If you are needing help with contracts, find someone who can help.  If you are needing help with office policies, procedures or training, find someone who can do these things with you ~ whatever it is, find someone who can get you in a position to take on whatever comes along.

If you or your team are having a problem with self confidence, get someone to coach all of you to reach your goals.

The things that I see that are lacking are a lot of training and procedural items.  These are the things that are lacking that should be dealt with now.  Let me know if there are things that I can help you achieve today in your company.  My book, the "Construction Administration Handbook", can help you with a lot of construction related training in your office also.

Don't lose any more money this year or waste any more time not achieving your goals, get on course now and get whatever your company is lacking ! !

Go get those contracts and be your best !!

Charlene S Reed, Owner/Author

www.MyConstructionOffice.com

"Construction Administration Handbook"

What Are You Breeding In Your Company?

“Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy.” - Dale Carnegie

Some great advice -- now what are you breeding in your company? Are you breeding doubt?  Do you wander around all day and talk like you have little to no hope left?  Are you giving off the feeling that you are afraid your company will not survive?  Stop doing this !!

Starting now stop having those doubts and start planning on what you can do that will help you get past these tough times.  People with plans survive -- people with no plans fumble and spend way too much money while they bounce from one thing to another and accomplish nothing worthwhile.

No matter what profession you are in, you need to stay focused, have a plan and be ready to re-assess your plan during the course of your business.  

• Accountants in construction need to be ready to update financial records quickly and accurately to reflect the most current position of the company.  
• Project Managers need to keep schedules of their projects up to date and know whether or not they are on budget and on time.  
• Office and support personnel need to make sure they are keeping track of all items necessary to keep the office functioning at top performance.
• Superintendents must be on top of all items and people coming and going from their job site.  They are the people who need to work closely with the Project Manager and Construction Administrator to keep a project moving forward from the field.  

Being prepared and positive in your daily job will help you overcome the doubt and fear.  It is good to have a healthy fear of the unknown but you have to have a plan to overcome that fear.  If you don't have the experience or knowledge to overcome the fear or doubt in business, make a point to find someone skilled in the construction industry to help you plan your next step.

The "Construction Administration Handbook" can help you with the knowledge necessary and help you get the experience while doing things correctly from the beginning.  

Stop fighting the doubt and fear and do something positive today for you, your company and your personnel.  Don't just sit there and feel sorry for your situation, get out and get busy !!

Charlene S Reed, Owner/Author

www.MyConstructionOffice.com

Choosing to Do Things Correct From the Start

Why do people go to all the trouble and expense to set up a company and put all of their life into the company to not run it correctly?  How much will it cost you to get it 'right'?

Successful companies don't just happen because you are a nice person.  Successful companies and successful people are made.  Any one can be a success but not everyone will be a success.  

Don't sit back and wait for people, places and things to fall into place.  I don't believe in evolution of any kind ~ 'things' don't just evolve.  WE didn't evolve from apes and successful people don't just evolve from employees who think they can do the job better than their boss did the job.

Tony Robbins said:

“You see, in life, lots of people know what to do, but few people actually do what they know. Knowing is not enough! You must take action.” - Anthony Robbins

This is true -- lots of people 'know' what to do but actually carrying it through to completion is a different story.  Then again, lots of people don't know what to do ~ this is where I come in . . .  The book "Construction Administration Handbook" covers everything from the contract award through close out and warranty.  It also covers personnel management, subcontract and contracting issues (Federal and private) and construction accounting.  You won't find another publication that is as detailed and helpful as this book is for the contractor or subcontractor.

Don't spend all of your money and time learning from the school of hard knocks -- I have already attended and put it all down in one book for you to use so you don't have to attend the school of hard knocks.  Don't lose money trying to figure out all the items necessary to run a successful business.

Take the action today and order the 'Construction Administration Handbook' at www.MyConstructionOffice.com.  Consulting and business development has been my career for the past 10 years.

REMEMBER:   Knowing is not enough! You must take action.

Charlene S Reed, Owner/Author

Contract Negotiations for Maximum Profitability

What are you doing to acquire new contracts?  Contracts that will last you into 2013?  What does the future hold for your company?

When the clock hits midnight on December 31st, 2012, will your financial future be bright?  Your future will not plan itself nor will contracts just fall into your lap to keep you financially stable throughout the coming year.

Financial analysts are sharing mixed reviews about the outlook for 2013.  Depending on your area of the country or world, there are a lot of deciding factors on how construction will play out over the next 12 months.

Learning to negotiate your contracts and learning to run a successful company are critical now.  You must either learn to negotiate contracts and win bids or hire someone who can help you that has the knowledge necessary to take your company into the next year.  

Negotiating takes skill and knowledge ~ are you prepared? Whether it is Government or private sector contracting, you need to be prepared from the pre-bid process through close-out to maximize your profits.

Negotiating skills can be taught and in a lot of cases, people are hampered in their performance by a lack of confidence.  I see this regularly in my company ~ I spend a fair amount of my time coaching people to build confidence and teaching them the skills they will need to not only survive this economy but to thrive in this economy.

People who are willing to be coached and are eager to learn and accept the changes necessary in their company seem to be the survivors.  The people who evolve with the times will be here long after a lot of people are closed down.

Don't choose to be one of the companies who will close down -- that choice is yours.  You can make the decision to invest in yourself and in your company now.  

Choose to thrive !!

Charlene S. Reed, Owner/Author

www.MyConstructionOffice.com

"Construction Administration Handbook"

How To Run A Successful Construction Company

Running a successful company in any economy takes knowledge and experience.  You can't survive without one or the other.  You can have knowledge but without experience, everything seems to be trial and error.  You can have the experience, however, without the knowledge to complete all items necessary in a company, you will find that you struggle unnecessarily.

During the 16 years that I have been in construction, I have consistently learned new and better ways to do things and have worked with many contracting officers and contractors to find out what people in this business need to know.

There is no one thing that will make you successful, you need to know how to perform those everyday tasks that keep your company going and to be profitable.

Face is, no one goes into business because they have money burning a hole in their pocket and they want to spend it on something that means nothing to them and then they want to work like crazy till they drop.  NO ONE wants this -- so why do people go blindly into business and not have all the skills and knowledge that they need?  Why do they not search out people who have done these things before them and who have had great success?  

I have taken all of my experience from the last 20 years in business (16 of those in construction), and put them all together into one book that is on my website.  This book covers everything from the time you get the contract until you close it out and do all the warranty work, including accounting and personnel management.

This book covers dealing with Federal Government contracting, competitive bid work and negotiated work.  I didn't put this book together to take people's money for things that they could find easily on the web but to give people in the business a manual to keep beside them in contracting.  I have boxes printed, bound and ready to ship to you today.

Keeping the most money in business is the bottom line why people are in business for themselves in the first place.  I, too, didn't go into the business of consulting to not make money - but I had another reason too, to help people establish their goals, train them and their employees on how to reach those same goals and to see them succeed in their profession.

Why are you in business?  Is it to make money or just have something to do or some place to go to everyday that takes all of your free time?  

If you need someone who has the experience to help you out in your company, contact me and we can work on a plan together to help you and your company succeed.

Charlene S Reed,Owner/Author

"Construction Administration Handbook"

www.MyConstructionOffice.com

Why Have Job Descriptions for Employees?

Job Descriptions - More paper, more hassle, more legalities or are they more than all of that?  I say they are way more than that.

Job descriptions not only explain what a person is responsible for in a particular position but they also give them other information including:

• Who they report to,
• Who they supervise,
• Their competencies, abilities and physical requirements,
• The skills, education and any licenses or certifications required for the position.

Every company should have detailed job descriptions for their employees.  Everyone then knows what they are expected to do in their positions and the employee knows what to expect from the company.  Think of it as a contract of sorts between you and the employee -- each has an obligation to the other.

Too often in my consulting business, I hear complaints from employees who tell me that they didn't know they were supposed to be doing something or I hear from an employer that the employee is just not performing to the qualifications and responsibilities of their position.  I can honestly say that in 99% of these cases, there are no job descriptions in place and no Policy and Procedure manuals either.  

How can you hold an employee responsible for something that they did or didn't do if they didn't know they were supposed to do it or know how to do it?  Or how can you hold an employee responsible in a disciplinary issue if you don't have a job description to back up what you are giving them notice for?

Job descriptions are good for employees but they are also necessary for employers too.  If you don't have them and you want to terminate someone for poor performance, what do you use to evaluate their performance?  What measurement tool do you have that will stand up in court or in a labor law dispute if they file claim against you for wrongful termination?

Job descriptions protect you and your profitability in more than one way.  If you don't have job descriptions in place in your company, no matter how big or small your company is, call someone and get them in place now -- before there is an issue.  The money you spend today to get them in place will surely save you money later when an issue arises.

Charlene S Reed, Owner/Author

www.MyConstructionOffice.com

"Construction Administration Handbook"

Building a Cohesive Team In Your Company

Being part of a team that everyone enjoys being part of is a great way to spend your day at work.  When your workplace is calm and people all do their part to make things work, your day seems to fly by and you enjoy your job.  Business is hard enough without having to live with unnecessary stress all the time.

Not every one has the pleasure of working in a stress free environment but those who do understand the feeling of enjoying going to work everyday.  

I don't buy into the supervisor who says that they can't be friendly with their subordinates because they can't discipline them if they do.  You don't have to be harsh to your subordinates to keep things running smoothly.

I have learned that:  

• If you want respect from your employees/subordinates, give respect.  
• If you want honesty, be honest.  
• If you want people to put their all into the company, be the example and put your all into the company.
• If you want integrity from your employees/subordinates, have integrity.
• If you want people who reflect your company values to your customers and vendors, treat them as valuable members of your team.

If you want to see problems:

• just start gossiping, 
• telling lies, 
• treating people like they are less important than you are, 
• act like they don't matter in the company at all or 
• you could find someone else who wants their job, 
• make them do all the work and then take all  or most of the credit for it, 
• treat them like they have no opinion and that any idea they have is not important.

You will find that human nature is that people will gravitate to the lowest possible position to get by, especially if they are unhappy or stressed at work.  

If you want good employees: 

• treat them right, 
• educate them, 
• let them know they are important to your company or team, 
• reward them when a job is done well, 
• share the praise with them when it is received, 
• plan to have a fun event with them on a regular basis where everyone can just have fun and just be comfortable,
• be open and honest with them on their productivity and performance,
• deal with issues right away and fairly,
• hand out discipline that fits the crime and praise that fits the level of performance.

One common thing that I have seen in happy and cohesive teams is companies that believe in the 'work hard, play hard' mentality.

The team mentality must be fostered.  You need to keep people happy and educated in your company for YOUR own best interest. I have gone into companies where people hated each other and worked with them to bring cohesion to an otherwise unhappy bunch of employees.

My experience has been that you have to bring all players to a common ground where peoples' opinions and feelings are taken into consideration.  People can discuss all issues without retribution and listen to what others have to say in a workshop where things can be worked out and solutions can be offered by others for the common good of the company.

You would be surprised at how things will change when all employees know they are being heard and that they can make a difference too.  If you need company coaching, please hire someone to take on this task for the betterment of your company.

Get back to working together and making the most of your company and the bottom line.

Happy contracting !!

Charlene S Reed, Owner/Author

www.MyConstructionOffice.com

"Construction Administration Handbook"

Past Performance Makes A Difference In Your Business

How much do you think Past Performance impacts your bottom line?  Do you think what you did 5 years ago, 10 years ago or even 20 years ago matters today?  

Even though the business of construction has evolved over the last few years, past performance matters more than most people care to know.  Things in your past such as complaints at the Contractor's Licensing Boards, liquidated damages or projects delayed without good cause, all impact how you are viewed for future contracts especially in negotiated work.  

In government contracting, your performance matters in every contract especially when you consider that they don't always take the lowest bid, but the most 'qualified' bid.  Qualifying for these bids means submitting ALL of your past performance on projects including any issues involving completion of projects.

Projects that have had delays or problems with 

• safety, 
• supervision,
• budgets, 
• subcontractors, 
• payments, 
• liquidated damages, 
• contract documents, 
• complaints, 
• certified payroll, 
• schedules,
• lien releases, 
• or any other issues can become an issue on future projects.

 I hate to see companies put days and weeks into a bid only to be disqualified at the bid opening based on past performance.  Make sure things that happen on projects are dealt with promptly and courteously (yes, you have to be nice).  

Documenting everything and working with your subcontractors and suppliers to resolve any issues in a timely manner will go a long way in keeping your past performance records clean.

Remember, what you do today will follow you tomorrow, not only in your personal life but also in your business life.  If you need help, don't hesitate to ask for it.  It is far better to admit that you need help than to be denied projects and opportunities later.

Happy Contracting !!

Charlene S. Reed

www.MyConstructionOffice.com

The Business of Construction

Construction has become a tough business and if you are going to stay in the business of construction, you need to be well advised and have well trained and skilled workers.  

Knowing where the projects are and bidding on projects successfully takes skilled workers who are part of a cohesive team.  The bidding process has become very competitive and companies are taking projects  at a loss sometimes just to get work.  

I have found that it is hard to find skilled workers for open positions.  In some cases, it is because companies have raised their standards but in most cases, it is because the skilled workers have moved on.  Some have moved away while others have moved into other company types.

Employee training is very important and for your business to thrive, you need to make sure you have skilled employees or you need to make sure you offer exceptional training in your company.  You shouldn't look at it as spending money for nothing -- you should understand that well trained employees can only improve your bottom line.  

Well trained staff gives you the benefit over the company who is hiring people that aren't trained or who aren't trained well enough.

I can't say that I didn't think about moving to another area where construction work was more abundant after the economic downturn.  However, I do see a change in the Phoenix Metro area in construction.  Home builders are once again building and I see certain types of construction increasing.  Other types of construction such as strip mall construction has dropped in some areas and has increased in other areas.

I love construction even with the downturn.  There is just something about the building industry that I like to be involved with.  Now in the 2nd printing of the book, the "Construction Administration Handbook", I have covered every aspect of construction including employment and accounting.   Topics covered are employee relationships, subcontractors, contract documents, accounting, change orders, necessary logs, and many other things necessary in a construction office.

Knowledge is power and having this power will help your company survive in this new era of construction.

Charlene S Reed

www.MyConstructionOffice.com

Fraud Prevention and Detection

What are you doing to protect yourself from fraud, theft - including identity theft and embezzlement?  Are you doing enough to protect yourself?  Do you even know if you have any controls in place?

These questions are meant to upset anyone or to ridicule anyone.  These questions are to get you to evaluate your current situation and to think about the risk that your company is at, and to do something about it.

Often I get calls from people who want things done in their office such as simple accounting, setting up a new accounting program, covering for someone who is out sick, training new staff or many other reasons.  During those times when I am in their office, I do a little check to see what controls are in place to prevent financial risk.  Sometimes, things just fall out in the open because they are so blatant and other times, it is not until I have been there a short time that things start to fall out.

None the less, these things should (most of the time) have been obvious to the management or owners with a few controls in place.  With proper Policy and Procedures in your office and with strict adherence to those Policies and Procedures, it would be obvious.

Some of the most obvious things to look out for or to look at include:

• Not allowing the same person who writes your checks to sign those same checks,
• Not allowing the same person to open and reconcile the bank statements who writes or signs checks,
• Making sure that all charges on company credit cards are truly for company business and having all receipts verified,
• Viewing thumbnails of all checks on your bank statement each month
• Reviewing charges and EFT purchases on your statements each month
• Keeping a file of voided checks, a list of lost checks, a list of checks that you have put a stop payment on,
• Keeping all signature stamps under lock and key where only you have access to -- never the person writing checks,

There are so many things that you need to be aware of and if you are the owner an not the one doing all of these tasks (which I hope you are too busy making money to do these things), then you need to make sure that these things are being done and that there are cross checking procedures in place and being followed.

In the event that you do have an issue of employee dishonesty, your insurance carrier will ask you what you were doing in your business to prevent fraud or theft.  It is YOUR responsibility to protect yourself and the insurance carrier against loss where possible.  

Check your coverages and make sure you have employee dishonesty in place under your insurance policy.  Also, make sure you are doing your part to prevent loss.  If you need help, ask -- I do this all the time for people.  Protect yourself -- this is important for your bottom line.

Charlene S. Reed, Owner/Author

www.MyConstructionOffice.com