Contractor Update

Service companies in the construction industry are constantly changing, expanding, and evolving. Bringing in new workers to handle those adjustments is a key component to any successful business. Here are some tips on how to make sure you avoid mistakes when you're hiring new full-time, part-time or contract employees:

1. Screen your Applicants - Make sure you investigate potential employees by doing background checks to look for past problems. Check for accuracy on their resumes or applications. Look for any criminal records. You might even consider drug testing and, if they're going to be handling money, credit checks. Spending a little time and money at the beginning could save you a lot of time and money down the road.

2. Interview your Applicants - Even if the potential employee is a strong referral, you want to make sure you ask questions and evaluate the person. You need to know how well that person communicates, how they handle situations, and if they can do what they say they can do on their resume. Interviewing is more than just asking where they see themselves in 5 years. Make sure you ask questions that put them in difficult situations to find out how they would react. Look for answers that offer multiple alternatives or options to see how creative they can be. Ask questions that give you an idea of how well their personality will match with yours.

3. Hire the Right Person - Sounds simple, but it's not. You may have two top candidates for a position. One has superior qualifications but you know your two styles will clash. You may need to go with the less qualified person, knowing that you'll be able to work together and bring that person up to speed. There will be a greater chance that this employee will stay become part of your team. The more qualified applicant could end up being a cancer to your other employees, your clients, and you.

4. Be Prepared - Know everything you can about the job you're hiring this person for. He or she is going to ask a lot of questions and you'll need to know the short and long range plan for the position, the salary range, potential for growth within the company, and skill requirements for the job. You should know what is needed from the position more than the potential employee. If you are not prepared, you may find out too late that you don't have the right person for the job.

5. Be Realistic - Don't promise the world to a potential employee if you cannot deliver it. And do not expect a potential employee to be able to deliver the world to you. No applicant is perfect. It's not a good idea to set up or expect unrealistic performances - you will both be disappointed and the relationship will not last.

6. Get it in Writing - Whatever promises you make to each other, put down all the details in a written contract or offer. It can avoid problems that might come up later. By listing how long the employee or subcontractor will be engaged, how much will be paid, what benefits are included, and what the job requirements are, you can prevent arguments and even lawsuits. Be as detailed as possible with any offer or contract you make and you'll be starting out your new relationship on the right foot.

Labels: Construction Hiring, construction jobs

For our Contractors - the next time you think you've had a "tough" day on the job, out there building and remodeling and repairing... you might stop and consider the day these guys had!






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Labels: Humor

As a small business owner in the construction industry, you might be considering ways to expand your company. Expansion is not for every company. However, if your business has maintained steady profitability, your service area has potential for growth, and you have systems in place to handle the growth then it might be time to expand:

1. Add a New Service - If you're an electrician, you might consider adding low voltage installations to your list of services. If you're a residential remodeling company you could include home additions as an avenue for growth. The great thing about adding a new service is that you have an excuse to promote it. You'll be able to contact every past lead and every old client to let them know you now offer new services. It could lead to more business and more referrals.

2. Expand Your Market - If you currently work in one city or one county, you could expand and advertise in new locations. Many conduct business near another state -- it makes sense to get licensed in that other state and offer services there. It could mean hiring another crew or adding additional vehicles to cover the new ground so having available financing could be an issue. Increase slowly to test the waters and pull back if it's not feasible. You may end up doing well in a new market because those customers may be sick of or tired of their choices of service professionals in their area.

3. Open a New Location - Similar to expanding to a new market, you might consider opening an office or hiring a crew in a new city or state. You'll need to focus your marketing efforts in that area as well as maintaining your current marketing projects for your area. It will also mean frequent travel to the new location to ensure quality of work. Pay attention to advice from any crew you hire because they'll know more about suppliers, competitors, and potential clients.

4. Partner Up - Merging with another service competitor or a company in a different line of work could provide an increase in market share. Another company may have a lot of great workers, tools and equipment, and a long list of referrals but is being poorly run. By acquiring a company in bankruptcy or merging with a strong competitor, you can quickly expand and maybe even double revenues in your area. There will always be problems of merging technology, management styles, and visions for the business. Make sure you have an exit strategy if the alliance does not work out. Have that strategy in writing in the form of contracts.

5. Work New Categories - If your company only focuses on commercial work, residential work, or contracts with the government, you might consider expanding into one of the other categories. It's certainly not an easy task to make this sort of switch. It is not a fast transition to make because it requires extensive retraining, retooling, and better infrastructure for the business as a whole.

Whenever you're planning to change your company by expanding it:

- You need to make sure that you won't be affecting your current business or quality of your work

- You have financing in place to handle the change

- You have employees with the right skills to handle additional work and paperwork

- You are ready to delegate work to others and that they're ready to handle higher demands

- You have the support system to handle any length of transition to your new business model

Labels: Business Expansion, Small Business Expansion

According to the LA Times: "Housing construction in California dropped sharply last month, led by a steep decline in single-family homes.

In October, the number of permits declined 29% to 10,520 compared with a year ago, the California Building Industry Assn. said. Builders are backing off constructing new homes until they can sell existing inventories.

That prompted a 47% plunge in single-family permits, the trade group said. Permits for apartments and condominium complexes fared slightly better, falling 28%. In Los Angeles County, however, multifamily permits rose 53%."

From the Orlando Sentinel: "The phone has been ringing lately at Terry's Electric in Kissimmee, and many of the calls have been from electricians looking for work now that home building in the area has started to slacken.

Terry's, with about 550 employees, is happy to snap them up because the company is still busy with commercial-construction jobs, wiring schools and mixed-use developments across Central Florida.

Residential construction is slowing here and across the country, and layoffs have been thinning the ranks of home builders everywhere, raising fears of a job bust that could ripple through the rest of the economy. But the commercial side of the construction business is helping to buffer the downturn.

"The housing souffle has finished baking and is out of the oven and cooling quickly," said Sean Snaith, the UCF economist who heads the institute.

"There is some softening on the condo side, but the commercial side is strong -- for hospitals, large-box retailers, schools, infrastructure," said Gary Redwine, senior vice president of Resource, Acquisition and Management Services, a Tampa-based construction employment-and-training company known as RAMS.

"Most nonresidential-construction people say the labor market is tight," even with the home-building slowdown, said Ken Simonson, chief economist for Associated General Contractors of America. "They still have a hard time finding qualified workers and subcontractors."

Nationally, the outlook for commercial construction is strong for hotels and resorts, hospitals and health-care facilities, schools, and water and sewer projects, said Simonson, the industry economist.

"Retail construction will suffer, along with home building," he said, but overall, "unemployment remains low, and construction workers in general should be able to find jobs."

Some skills, such as concrete finishing, plumbing, wiring, and heating and ventilation, are transferable from residential to commercial jobs to some degree, Simonson said. Specialty carpentry jobs are not as easily transferred, and not all subcontractors have the size, or "scale," to work commercial projects when residential contracts dry up, he added."

Labels: construction jobs