EARLY TO BED, EARLY TO RISE · EARLY TO BED, EARLY TO RISE MAKES AMAN HEALTHY, WEALTHYAND WISE...
Transcript of EARLY TO BED, EARLY TO RISE · EARLY TO BED, EARLY TO RISE MAKES AMAN HEALTHY, WEALTHYAND WISE...
EARLY TO BED, EARLY TO RISE MAKES AMAN
HEALTHY, WEALTHYAND WISE
BENJAMIN FRANKLIN
• Aim for everyone to work 44 hours a week;
• Minimum 7.30-5pm Monday - Thursday;
• Finish @4 on aFriday;
• 1hr extra Mon-Thur - 4hrs
4hrs x5 guys = 20hrs
20 hrs x50 weeks = 1,000 hrs
1,000 hrs @$50/hr = $50k
...Net result $45k
• If you pay your guys an extra$20/week incentive towork
the extra 4 hrs =$20 x 5guys x 50weeks = $5k/year
• Stick to set smoko times;
• E.g. ½ hour earlier, ½ hourlater;
• Request & ensure that everyone isready to start on
time (i.e. arrive at 7.15am for a 7.30am start)
• Let everyone on site know the labour allocation
for each task
E.g. FORECAST: - Framing 70hrs
- Int. 100hrs
- Ext. Clad. 80hr
• Align the labour allocation with individual ability
- Who does what? Skill level vs. charge-outrate;
• Keep daily site logs;
• Encourage efficiency by introducing incentives
to save labour time
E.g. $20 @Toolbox meeting for any great ideas
implemented
• Encourage punctuality
(don’t let the team down); and
• Check productivity by breaking the jobdown
by stage in real time/ backcosting in real time
• Get the right guy for the right job - the correct
task for pay rate
• Introduce incentives for apprentices to not
make mistakes e.g. tool purchases/allowance
• Hire/allocate labour to match the skill level
required e.g. apprentices/labourers/hammer
hands on demos and Jumbobins
• Make sure the onsite foreman isintimate
with the job and knows the scope (take him
through the plans and contract before starting);
• Daily task lists/plan everyone’s day
- based on experience
- Minimum 2 days in advance
• Timetable & GANTT chart visible to everyone
IF YOU THINK IT’S EXPENSIVE
TO HIRE APROFESSIONAL,WAIT UNTIL YOUHIRE
AN AMATEUR
• To be found through ‘work experience’
• E.g. university students (studying
construction/architecture/design)
• E.g. Through the ‘Gateway program’
(work placement through BCITO)
bcito.org.nz/schools-and-providers/gateway-programme
• Can help with easy tasks such as:
• Cleaning the site
• Setting up
• Purchasing materials
• Coffee run
Even if just in the office (marketing/admin.)
• Be aware of health & safety issues if on-site &
make sure the appropriate systems are in place.
• Define your KPI’s, know your numbers and
respond accordingly. E.g. if framing runs over
by 20+ hours, address this in a toolbox meeting -
ask your guys how to get the hoursback;
• Enable ALL staff and subbies (and even
clients) to have access to your PM
software so they can feel ‘in the know’ &
can see how everyone’s part is ‘part of the
whole’.This Createsmuch higher
motivation & buy-in during the build;and
• E.g. Buildertrend, Co-Construct, RaveBuild or
Microsoft Project.
• Order with profit in mind: accurately, detailed and
complete to save unnecessary trips tosuppliers;
• Track the materials going into the job;and
• Order in bulk to save ontransport;
• Check invoices for variances in materials - get the
Foreman to check the dockets to ensurethat
what was ordered is actually onsite;
•Price checking with merchants - every 90 days send
plans to PlaceMakers/ITM/Carters etc. to price check
a job e.g. for a 150sqm project;
• Check your ‘Terms of Credit’
• Use your credit card to get an extra 30-50 days credit;
• Negotiate free delivery for orders over $1,500; and
• Don’t order on the 31st of the month, order in the
begining of the month eg. 1st - 15th tomaximise.
• Use left-overs from the last job;and
• Use the remaining material on otherjobs;
• Encourage changing the ‘rubbish culture’ mentality
on site (incentives for saving materials e.g. the
money made from scrap metal goes towards the social
club/fishing trip);
• If you can’t reuse, return theunused
materials to get a refund (where possible
free return of excess product);and
• Be mindful in the first place to make sure your
orders are correct - spend time todouble check!
• Lock up on site; or
• Use site security; and
• Use a cover overmaterials;
• Check your insurance to ensure you are protected for:
- Theft from vehicles (and your team’s vehicles)
- Replacement value rather than ‘market value’; and
• Plan where to store your materials - minimize
re-handling because it cost you every time
you move it!
• Charge an administration fee for variations($200);
• Minimum flat fee for all variations e.g. $500;
• Include extra time for gear hire e.g.
scaffolding, Jumbo Bin etc.;
• Use a detailed checklist
• Invoice straight away to improve your cashflow as
opposed to the end of thejob
• ‘Tag out’ certain items in your initial quote
which can be identified in variations later e.g:
- Rock excavation
- Asbestos
Lack of detail on plans.
II T’S B ETTERTO HANG OUT WITH PEOPLE BETTER
THAN YOUPICK OUT ASSOCIATES WHOSE
BEHAVIOR IS BETTERTHAN YOURS AND YOUWILL
DRIFT IN THATDIRECTION
WARREN BUFFETT
• Make sure all your subbies take their
own rubbish off the site or they will be
charged;
• Encourage everyone including subbies
to fill bins with extra items that could
be recycled for free (e.g. Gib board);
• Often clients will use the skip bin for their own
rubbish (e.g. furniture/whiteware/fittings
boxes)...organise a way of charging them for
this e.g. split the costs 50/50
• Be clear on the scope of works they will do;
• Set an agreed number of trips per job;
• Use acontract;
• Shop around (minimum every 90 days);
• Negotiate a better rate; and
• Then add 15-20% markup.
IF YOU REALLY WANTTODO SOMETHING, YOUWILLFIND A WA Y. IF YOUDON’TYOU WILL FIND ANEXCUSE.
JIM ROHN
This could be...
• For a $200 - $250k job:
2.5 hours per day @$65
over 11 weeks (55 days) = $8,937.50
x 3 jobs = $26,812.50
Add expenses
• Your PM costs $80k + car, phoneetc.
+ margins on top...5% incl. admin, phoneetc.
SPEED OF IMPLEMENTATION ISTHE COMMONALITY BETWEEN THE
MOST SUCCESSFUL PEOPLE.
THEY TRANSFER THEIR IDEAS TOACTIONS AS QUICKLY AS POSSIBLE.
THE DIFFERENCE IN YOUR LIFEIS GOING TO BE MADE BY THE
ACTIONS THAT YOU TAKE...
EBEN PAGAN
• Work closely with your QS in the beginning;
• Double check all quantities;
• Keep reviewing the quoting process:
Every 4-5 jobs, check
- Subbies
- Site Entry/access set-up
- Health &Safety
- Forecast vs. actual labour times per stage
- Materials
- Your guys & their speed/expertise on eachstage
• Note hours on each stage; and
• Set a min. Gross Margin %per job
E.g. - min. 20% if converting < 50%
- min. 22% – 24% if converting > 50%
• Stop doing free quotes!
• Charge for your QS’s time - make him a valued team
member in your business ...do this especially if
YOU are theQS;
• This works well for insurance companies, especially if
doing earthquake repair work in Christchurch
• E.g. $1,200 - $2,000 per quote
• There is a process for being able to position yourself to
do this - starting with:
- improving your marketing
- Your website
- Your information pack
- Scripts
- Your paperwork
• In real time i.e. labour, materials, subbies...
• Have the guys & site foreman fill in your daily site logs
• Break it down by stage - Forecast vs.Actual
• Make changes accordingly
• E.g. 1. Guys are good mates & talk too much?
- Split them up
2. Grumpy foreman?
- More remedial work needed by
apprentices &hammer-hand
- Chat with him
- 360 deg. Peer review
1. Guys not skilled in certain areas?
- Train them in the areas they
are not good at
2. Difference in numbers was simply
underforecasted for that stage (e.g. Joists20hrs vs
35hrs)
- Allow for more hours nexttime
- Add Safety margin of 20%
• Hunt around to ensure the bestprice
e.g. price a 150sqm house, do this every 90 days;
• Buy in bulk e.g. nails, timber
• Negotiate free delivery to site over$1,500;
• Make use of all promotion specials
• Get suppliers to tender; or
• Show a supplier another supplier’s quote and
get them to compete on that price.
• Keep an accurate cutting list on-site;
• Quality control: measure x2, cut x1; and
• Order properly!
• Get the right guys for the job (ensures the
specialists are there when needed);
•Be crystal clear on trade times on site
(Project Management Software provides a great
visual of this);
• Get subbies involved in your project
management software;
• Scheduling to minimimse downtime;
• Incentives for reaching time targets
e.g. Friday lunch shout;
• Set a targets/time-frames for each task; and
• Use handover checklists for your subbies.
WHAT YOU LACK IN TALENT CAN BE MADE UP WITH
DESIRE, HUSTLEAND
GIVING 100% ALL THE TIME
GEORGE ZALUCKI
• In-house purchase order systems;
• Foreman to always check the delivery docket with
exactly what was delivered to site;
• Make sure to get faulty products credited;
• Check prices: charged vs. what was quoted;and
• Be careful when the client supplies items... - what
is the true cost of that to you? Who loads and
unloads? Who does quality control? Who measures?
Make sure a client supply arrangement is not
costing you money.
• In your ‘WOW information book’
(Lofroth Builders charged 5 advertisers
$500 each to advertise in their information
book)
• On your website
• On site (containers, fences)
• On uniforms
• Site signage
• Have a systemised process for capturing
variations;
• Maintain a checklist on each job with
everything e.g: - insurance
- materials
- labour
- scaffolding
- jumbo bins
• Consider who presents the variation - it is a sales process
• Double check the variation with the QS/management
• Maximise staff per vehicle to reduce running costs;
• Encourage guys to pick up from home/
carpool;
• Choose to work closer to your base, market locally
(this saves fuel and time); and
• Charge your clients for travel costs e.g. perkm.
COMMITMENT IS DOING THE THING
YOU SAID YOU WOULD DO,LONG AFTER THE MOOD YOU
SAID IT IN HAS LEFT YOU
GEORGE ZALUCKI
• This works when you:
• Keep culture aimed to high-end
jobs (and clients);
• Dress your guys all in a professional
uniform including your apprentices;
• Encourage a professional manner at all
times (use TPB’s ‘Rules of the Game’ document)
• See the below examples for a gain of up to $80k to your
bottom line
HE WHO IS NOT COURAGEOUSENOUGH TO TAKE RISKS WILL
ACCOMPLISH NOTHING IN LIFE
MUHAMMAD ALI
• Foreman to let your guys know what they are doing
at least 2 days in advance so they can prepare
to have the right tools for the job;
• Make sure that each staff has a ‘minimum’ tool kit
on site at all times:
- toolbelt
- handsaw
- hammer
- ruler
- nail pullers
- ear muffs
- set square
• No smoking during workingtime;
• No cellphones during work hours; and
• Tool allowance for apprentices or you can help to
fund their tools.
- pencils
- tape measure
- nips/pullers
- nail punch
- craft knife & blades
- steel capboots
- safety glasses
• AN EXAMPLE: (Fixed price contract)
- 3 Guys charged out at $6K per week
($50/hr x40hrs)
- Foreman + you forecast the job @12 weeks, BUT the
team does the job in 11 weeks...
- 1 week saved = $6K
- Foreman gets 20% =$1,200
- You get an extra $4,800
- Plus the team now has an extra week’s capacity,
They can slot in another week’s job.
-With a 50% GP Margin for a new job
($6k - $3k =$3k GP)
...$3,000 + $4,800 (1 week saved) = $7,800
Original job $4,800+ $3,000 = $7,800...From that we
project a happy foreman & a productive team!
• Charge a margin on Cost of Goods Sold
(COGS) - 15% minimum; or
• 20% Markup = 16.7% GPMargin
• 15% Markup = 13.0% GPMargin
• Ensure you know the difference between mark-up
and margin, and its impact on how much work you
have to do to hit your profit goals
• If you already charge a margin, increase
the percentage. - 10%is not enough
• Higher mark-up on materials
• Capture everything involved e.g:
- Heritage listing checking
- Admin
- Scaffolding
- Insurance
- Jumbo Bins
• Increased labour rate ($50/hr to $65/hr) - this
may involve more of your Foreman’s time
• Increased administration fee (specify the rate
in the contract)
Yes/No Items(Yes only to workif 100% on in theof the next90time) daysPlace a tick orcross
Labour1 Start earlier (30min)
2 Finish later(30min)
3Control onsite labour, let people know your labour allocation to provide a goal to aim for leading to
more efficiency
4 Keep daily site logs
5 Keep track of smokobreaks
6 Align the labour allocation with individual and team goals with incentives
7 Encourage efficiency by introducing incentives to save labour time
8 Check productivity against projected costs by breaking the job down by stage (in real time)
9 Work experience college kids for simple labour
10 Send the apprenticeout to do the coffee run & smoko
11 Target the market for the staff you have
12 Hire/allocate labour to match the skill level required
13 Make sure the onsite foreman is intimate with the job and knows the scope
14 Get everyone to check quality control on their own work via a checklist
15 Enable ALL staff and subbies to have access to your projectmanagement software
16 EffectiveToolboxmeetings ($50 for the top 3 ideas used by team members)
17 Maximise staff per vehicle to reduce running costs e.g. pick guys up from home/carpool
18 Keep professionalism at alltimes
19 Keep entire culture aimed to high-end jobs (and clients)
20 Maximise staff per vehicle to reduce running costs
21 Foreman: a) forecast hours b) 20% of labour saved
22 Finish @ 4pm on a Friday
23 Stick to breaktimes
24 Encourage punctuality (don’t let the team down)
25 Use salary earners for night shifts
26 Weekly prize forproductivity
27 Make sure the staff know what extras(variations) are so they can keep the labour component separate
28 Site van with the correct tools for the job that all builders can use. Saves down time looking for gear
29 Employ an extracarpenter
30 Introduce incentives for apprentices to not make mistakes
31 Define KPI’s, know your numbers and respond accordingly
32 Choose to work closer to your base (this saves fuel and time)
33 Make sure all your workers have the right tools for the job
34 Make sure that each staff has a ‘minimum’ tool kit on site at all times.
35 Nocellphones during work hours
36 Keep a fridge of Red Bull – Full
37 Cut loose the badapples
38 A clean site worksfaster
39 Send the young apprentice to pick up materials pay him petrol money each week when he does it
40 Check your employees productivity against projected cost
41 Clear precise instruction forteam
42 Goal setting for the week ahead
43 Set daily goals perworker
44 Use your time in traffic to answer messages ( hands free ) instead of being interrupted whilebuilding
45 Let everyone on site know the labour allocation for each task
46Make sure you bring your apprentice up to speed as quick as possible, don't leave them constantly on
menial work, especially in a small crew
47 Have the apprentices/labourer set up in the morning leaving builders to do their work
48 Keep pre site visits to a minimum
Yes/No Items(Yes only to workif 100% on in theof the next90time) daysPlace a tick orcross
Pricing49 Charge a Project Management fee (eg.$200-250 per job, per day for foreman)
50 Charge forQuotes
51 Charge for QS’s time
52 Charge for travel
53 Charge a margin on materials - 15% minimum
54 Charge an Administrationfee
55 Charge Administration fee for variations not actually followed through on e.g. $200+gst
56 Charge foroverheads
57 Back-cost in real time - Make changesaccordingly
58 Add an overhead to all jobs - 8-10% minimum
59 Capture as much detailupfront
60 Work closely with the QS in the beginning
61 Double check allquantities
62 Keep reviewing the quotingprocess
63 Note hours on each stage (Forecast vs. Actual)
64 Overall Gross Profit Margin should be 20-25%
65 VALUE your time
66 Increase your % margin on COGS
67 Consider charging out all team members at the same rate.
68Stop doing free quotes - There is a process for being able to position yourself to do this - starting with
marketing , sales process andscripts
69 Increase charge out rate for apprentices
70 Outsource pricing
71 Implement automated pricing/invoicingsoftware
72 Use TPBtemplates for pricing
73 Price off consented plansonly
74 Use unit/metre rates for certain tasks instead of a dollar value for hourly rate and margin on materials
75 Use cheap office staff to chase subbies for quotes or chase payments
76 Schedule right - Use PM Software
77Double-check working drawings/details before submitting for building consent to eliminate rework and
holdups.
78 Take all your business funds out of your account to offset your mortgage
Subbies79 Get the right guys for the job (ensures the specialists are there when needed);
80 Be clear on trade times on site
81 Scheduling to minimisedowntime
82 Fixed prices from forsubbies
83 Tender/shop around every 90days
84 Be clear on the the scope of works
85 Add 15-20% Markup
86 Contracts with allsubbies
87 Charge subbies for rubbish (take their own rubbish off the site or they will be charged)
88Encourage everyone including subbies to fill bins with extra items that could be recycled for free (e.g.
Gib board)
89Q-Code' barcodes - b. Codes can be created for emails etc, that anyone can scan and send without
having to have any further info.
90 Rebate fromsubbies
91 Handover checklists
92Set a time-frame for each task – this needs communication between the projectmanager and the
foreman
93It is often cheaper to get subbies to undertake the work rather than your carpenters or your tradies
doing it
94 Right person right job. $50 workers do $50 tasks etc.
Yes/No Items(Yes only to workif 100% on in theof the next90time) daysPlace a tick orcross
Suppliers95 Negotiate prices
96 Hunt around to ensure the best price (every90 days)
97 House priced (E.g. 150sqmhouse)
98 Negotiate free delivery to site (ordersof $1,500)
99 Negotiate free hireage ofequipment
100 Pay with credit card to get air points/flybuys etc.
101 Charge for supplier advertising in information book/ on site
102 Always check the delivery docket against actual products delivered
103 Buy in bulk e.g. nails,timber
104 In-house purchase orders - control orders and costs
105 Be clear on costs to you if the client supplies items (i.e. charge them)
106 Return rentedequipment ina timely manner. Don’t just leave it lying around.
107 Negotiate financial help with your suppliers for uniforms, signage etc.
108 Use Purchase Order (PO)system
109 Supplier to do yoursite signage
110 Get suppliers to tender
111 Show a supplier another supplier’s quote, get them to compete on price.
112 If using regular suppliers, get clients to pay upfront for better discounts
113 Make sure to get faulty products credited
114 Order 2-3 days inadvance
115 Get subbies to use theirsuppliers
Variations116 Administration fee for variations of $200 which are not proceeded with
117 Minimum flat fee for variations (min.$500)
118 Includeextra time for gear hire e.g.scaffolding, Jumbo Bin etc.
119 ‘Tag out’ certain items in your initial quote which can be identified in variations later
120 Maintain a checklist on each job with everythinge.g.insurance, scaffolding, jumbo bins
121 Have a process for capturingall variations
122 Educate your guys what constitutes a variation
123 Lack of detail onplans constitutes a variation
124 Increase fees on variations - mark-up/labour rate/Admin fee
125 Higher markup onmaterials
LABOUR /48
PRICING /30
SUBBIES /16
SUPPLIERS /21
VARIATIONS /10
MATERIALS /26
GRAND TOTAL 151
Yes/No Items(Yes only to workif 100% on in theof the next90time) daysPlace a tick orcross
Materials126 Track the materials going into thejob
127Order materials as early as possible to avoid delays (e.g.scaffold cost can blow out if windows, cladding,
roofing, etc.delayed)
128 Order accurately, detailed and complete to save unnecessary trips to suppliers
129 Order in bulk to save on transport e.g.orders over $1,500
130 Recycle/re-use excess materials
131 Encourage changing the ‘rubbish culture’ mentality on site;
132 Return unusedmaterials (to get a refund);
133 Check the Jumbo Bin each day for extra timber for nogs, any recyclable things, scrap metal.
134 Utilise equipment like gib lifters to reduce manpower needed
135 Check invoices for variances inmaterials
136 Check your ‘Termsof Credit’ – get smart on it
137 Makeuse of all promotion specials
138 Use left overs from thelast job
139 Always have a separate trailer for all recycled rubbish (e.g.Gib board recycle skips).
140 Use the remaining material on other jobs
141 Use where possible free returnof excess product
142 Charge the client to fill your bin with their own rubbish
143 Use a cover overmaterials
144 Protect your materials onsite:
145 Accurate cutting liston-site
146 Quality control cutting: measure x2, cutx1
147 Check brand substitutions
148 Rubbish bin near each builder to save on clean-up time
149 Margin onmaterials
150 Don't over buymaterials
151 keeping control ofexpenditure