Monthly Archives: August 2016

Safety: Working around heavy equipment

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Just like the owner of the construction company cares a lot about this heavy equipment, in the same way he also needs to care about the people who are working all day around the those machines. The operators are the ones who remain very close to the equipment. However, there are also other people like the construction laborers, engineers, site officers, and supervisors, who also remain in close contact with these machines. Though they not have any direct relationship with the machines but they all remain around the heavy equipment for most of the time during their working hours. Hence it is very crucial to ensure the safety of these men. Accidents of any sort should be avoided and there should not be any chance for anybody to not follow the safety parameters. The safety rules are meant for everybody who is inside the construction site and particularly close to heavy equipment and it also becomes the responsibility of the individuals who goes close to the machines to follow the safety rules religiously.

We will be discussing few very basic safety parameters one must be doing to keep himself safe while he is around heavy equipment.

Operators should always wear gloves and strong boots:-

Since operators are the one who always remain in close contact with heavy equipment, they must always ensure that they wear their safety gears at all times whenever they are in close distance with the machine. They must always wear gloves and strong boots that are not too heavy. Wearing gloves will protect them from any outer substance that has gone very hot and by coming in close contact with that substance they might injure their hands. Strong boots ensure that their feet are protected with any sharp element that may be present inside the cabin of the machine or anywhere on the site. They are the ones who are more prone to hazards and hence they should keep their safety gears on while working on the site.

Various safety sessions should be given:-

There are high chances that people especially laborers working on the construction site may not be aware of the importance of wearing safety gears when they are around heavy equipment. This is why they should be given different types safety lessons at regular intervals. The sole purpose of giving such trainings is to ensure that they do not injure themselves while at work causing problems to the project as a whole. Advanced safety training lessons should be given to the operators educating them to tackle situations. Also teaching them what to do in case there is a medical emergency on the site will help them to save a life of their colleagues. These types of sessions are very important as the availability of doctors can’t be always immediate. They would be the ones who will do the first aid and easing things for the doctor.

The construction company should make every attempt to ensure that the employees are following the safety parameters. This will all lead to a healthy working atmosphere in the construction site.

 

Resale of CAT heavy equipment can fetch higher price

Heavy equipment after a certain period of time needs to be upgraded and while you are in the mode of upgrading it, you either do away with your existing one or you install more features in it. Sadly, not all heavy equipment are compatible with upgrading feature and one has to eventually do away with it. But the question here is that once expensive heavy equipment which is now no longer in use for you, does it fetch any resale price for you and do you have a market where there are buyers who are ready to buy your heavy equipment which has perhaps now become almost redundant. Well, as we say there is a market for everything in this world. You only have to find the right channel to put it across. The next important question is at what price you should be selling your used and possibly redundant heavy equipment.

Heavy equipment of different companies have different rates. You sell a machine of a reputed brand and you are sure of the fact that you will get god money out of the transaction. However, if you have heavy equipment which is not of a famous brand then getting a decent price could be a problem. It is quite logical for anybody to not pay you more for a machine that does not have a good brand name attached to it. Therefore, the crux is to buy heavy equipment of famous brands so that when you have to sell them, you can expect a good price. Heavy equipment of CAT are famous for its quality, durability, high performance and low maintenance cost. So owners of CAT equipment ideally do not experience hardships in selling their machines at a price they want to. They normally get the amount they quote and also owners of heavy equipment of other top notch brands have an easy time selling their used ones in the second hand heavy equipment market.

So eventually, it is the brand name that plays a major role in getting a good resale value and CAT heavy equipment are undoubtedly the best. So there are more takers for that than machines of any other brands. The avenues where you can sell your used CAT heavy equipment are online, word of mouth and to companies who deals with second hand machines. When you sell it via word of mouth, you end up paying nothing to anybody for selling the machine but using any other mode apart from this will cost you an amount. If you try to sell the heavy equipment online, the website will charge you a nominal fee for listing the item and also an additional fee if it turns out to be a successful sale.

If you approach a company who buys your used machine and sell it after making some modifications, you only get the sales price and do not pay any sort of fees to anybody. In this scenario you got to wise enough as you are dealing with professionals who will try hard to negotiate with you and bring down the price of the machine. Stick to your price and you may see them paying you the amount you have quoted.

Heavy Equipment Transporter

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It has always been a big challenge for the heavy equipment manufacturing companies to ferry their machines to the place from where it has been ordered. It is not a simple task as it may sound because here you are not dealing with couriering a small package but you will be ferrying an item that is quite big and weighs in tons. Moreover there is always a risk of the item getting damaged during transit. Heavy equipment if not loaded properly are prone to damages and also lead to unwanted accidents. Therefore it is absolutely important to load the machines on something that is bigger in size and can move on the roads with ease. This is given rise to heavy equipment transporter. It is just another form of truck. However, the only difference here is that it is way bigger than those normal trucks that you see on the roads and also it looks lot different.

Ideally, heavy equipment transporter is widely used by militaries of different countries all over the world. They are used to ferry tanks, at times war planes and stuff from one place to other. However, that has not restricted its use to only military purpose but is also used by industries that deal with heavy equipment. So, it is not just about the construction or mining industries but basically any industry that requires big machines. For instance, a company that is into producing iron bars may also need big heavy equipment or companies that require cranes in their factories will also need the help of heavy equipment transported to ferry the machine from the source to their place.

There are many companies who are involved in the business of ferrying heavy equipment and it is crucial that you understand their terms and conditions before you opt for their service. Some companies may charge you a fortune in the name of excellent service. No doubt you require good service from them but there has to be a limit in terms of its price. You just can’t pay anything that they ask you in the name of good service. Therefore, you got to be a bit cautious when you are dealing with such companies and check their reviews before you finally give your order. It will be prudent on your part to get the quotation of other companies as well and if possible try and see if you can at all negotiate the price with them. Price negotiation is always a possibility. It is also important to know the mode of payment. If you have to pay them via check or cash or do they accept card payment.

In many of the cases, it has been found that companies who are in the business of transporting heavy equipment like to deal in cash and not much with check or credit card. This means that you need to ensure that you have sufficient money with you to pay them. In case, if the seller is ready to pay the transportation charge then you need not worry or else you got to do all the research work.

 

The Most Revolutionary New Construction Technologies

By

Jason Hurdis, Sr. Market Professional, Caterpillar Inc.  (Guest Post)

Tim Crane, General Manager Safety Services, Caterpillar Inc.  (Guest Post)

 

The construction industry has transformed drastically over the past 20 years. Smartphone apps have enabled real-time information exchange; armloads of files and blueprints are being replaced by a few taps on a tablet. Technology is changing almost every aspect of the industry, and companies that refuse to adapt and implement it risk being outdone by tech-savvy competitors.

One of the biggest fears construction company owners face when considering implementing new technologies is understanding what they do and how to use them effectively. Below are snapshots of some of the newest and most innovative construction technologies available to the industry:

 

  1. UAV Technology

 

Unmanned aerial vehicles or UAVs are a hot technology in several industries today because of all the different business use cases they can provide. In the construction industry, companies are sending camera-equipped UAVs into the air to take dozens — if not hundreds or thousands — of images. The pictures, which are linked to GPS data, can be stitched together with special software, transforming them into a 2-D or 3-D site model. The model can be used to:

 

  • Assess progress on a project — daily, weekly or at some other regular interval
  • Locate specific areas where work is falling behind schedule
  • Measure stockpile volume
  • Determine the amount of overburden that needs to be removed from an area
  • Monitor width and slope of haul roads
  • Analyze quarry faces and berms
  • Inspect hazardous areas
  • Confirm that employees are wearing protective gear and working safely
  • Get a high-level view of operator technique, load-zone placement, tire rotation and     other factors that affect efficiency
  • Show clients work in progress
  • Create images for marketing presentations and materials

 

These tasks and many others can be done quickly, accurately and economically with UAV systems — assuming you have access to the right technology, analytics and expertise. Caterpillar has a small team of UAV experts whose sole focus is determining how the technology can be used to improve site safety, efficiency and profitability.

 

Companies that are considering taking advantage of UAV technology need to be aware of the laws governing the commercial use of UAVs because they are different depending on where you do business. The United States has the tightest federal regulations in regard to UAVs, with new laws slated for 2016. We think UAVs are going to take off in the construction and aggregates sectors over the next few months and years. As this technology evolves, you’ll be able to combine machine data from your telematics systems with geo-spatial data from UAVs, giving you the power to take site efficiency to all-new levels.

 

  1. GRADE with Assist

Grading technology helps make excavators, dozers and motor graders more efficient because it allows operators to get to grade faster with less effort. Caterpillar’s precision grading system, Cat® GRADE, part of Cat Connect technology, can help both new and experienced machine operators deliver dramatic improvements in grading efficiency over a wide range of applications. GRADE with Assist, which adds automated grading sequences, is featured on Cat Excavators, is the most advanced worksite technology available. Among the benefits grading technology can provide:

 

  • Keeping people off the ground and out of trenches
  • Reducing the cost of staking and grade checking
  • Cutting grading time by up to 45%
  • Conserving fuel and materials when you finish in fewer passes
  • Saving time and costs related to rework
  • Helping less experienced operators work like pros

 

Grading technology, like Cat GRADE, enhances jobsite safety, improves reliability and adds to the machine’s value, both on the job and at resale. Just to show some real-life examples, below are 10 things you can do faster and more efficiently with grading technology:

 

  1. Dig a basement
  2. Build a detention pond
  3. Put in a sewer line
  4. Dig foundation footings
  5. Cut a drainage ditch
  6. Prep a commercial site pad
  7. Build an access road
  8. Install underground utilities
  9. Slope an embankment
  10. Construct a retaining wall

 

  1. Workplace Safety Technology

 

Several new technologies have become available to safeguard worksites and better manage risk. One of the most common accidents in the construction industry is being struck by or trapped by equipment or vehicles. Blind spots and backing up accidents account for between 25 and 50 percent of the total. One in 10 construction workers are injured every year, so worksite safety is paramount. Here are some of the newest worksite safety technologies that can help prevent injuries:

 

  • 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
    • A camera installed in the cab that monitors pupil size, blinking and how long eyes stay shut determines fatigue detection. 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 has 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.

As it becomes more evident that technological innovations will shape the future of the construction industry, it’s up to you to determine if your company is going to embrace these new construction technologies or be left behind. We here at Caterpillar encourage you to re-think the process of using, managing and owning heavy equipment by incorporating these new technologies to help make your equipment more productive and efficient, and your business more profitable.

By

Jason Hurdis, Sr. Market Professional, Caterpillar Inc.  (Guest Post)

Tim Crane, General Manager Safety Services, Caterpillar Inc.  (Guest Post)

Determination is the key when it comes to construction industry

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In almost every industry, in order to attain the highest level, a person needs to be highly determined to reach till there. Skill also plays a pivotal role in his success but it seems that determination to succeed is the key when it comes to the construction industry. Construction sector is a highly competitive sector and one may have to experience a lot of ups and downs when they are a part of this industry. Many a times they are subjugated by their competitors and at times have to work at their whims and fancies so that they can simply survive in this sector. The big players hold a major share of the market and in order to just stay in and survive, small time companies often have to comply with the orders of the big companies. Other than that, there are different kinds of lobbies that one has to get associated with, without which it will be really difficult for them to carry on in this sector.

In this midst of all these hassles, there is one thing that keeps most of them going and that is the zeal, the determination to make it big in this sector. There are few things that one must do to keep that flare on.

Always think about your goal and move in that direction:-

This is pretty tough to do. However, it really pays you off handsomely. The only think that should be there in your mind is your business. This will help you to keep getting different kind of ideas, plans in your mind that you can make use to expand your business. You will undoubtedly be experiencing many other issues that will be other than your business. However, that should not affect your business plans and your intention to grow. Having said this, you should not mix your business life and your personal life together. This is real tough to do but you got to learn this with time. People may give you some advices. You may check if any of them actually works for you and in case if any of their advice works for you, then you can follow that whenever a crisis of that sort appears. The key is to just keep your focus intact and move in the same direction. Some problems or the other will always keep on surfacing. It will be ultimately your talent how you handle them and continue to move in the path you have chosen.

Always follow the guidance of a mentor:-

The construction industry is a highly complex industry and time and again you will come across issues that you may find new and may not know how to deal with it. This is when you require a mentor, a person who will guide you all the way through, a person whom you can trust and you know that he will never give you any wrong advices. While working in such a multifaceted industry, having a mentor who will help you to be focused is very essential.

 

 

Youths making their way in the construction domain

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We all have the wish to set up a company of our own and be our own boss but very few are indeed able to fulfill this dream of theirs. It is often the level of competition that weeds out the new talent and also the lack of preparedness on the part of the youngsters before they begin with setting up their business. One such industry that has given the wings to fly is the construction sector but the sort of competition one gets to experience in this industry is enormous. There is a rat race that exists in this sector. People are expected to do everything to just get a deal. It is not that getting work is way harder. It is just that people for some reason do not have the patience to wait for the right deal to come by.

Youths in particular who aim to become a part of this industry needs to take care of many things. Firstly they should work on their knowledge on this industry. This sector is pretty vast and involves lot many things that affects it on an everyday basis. So having a fair amount of idea often helps while taking the right decision. You should not want to see yourself lost when you get to know some common stuff about the industry that you are a part of. Therefore keeping your eyes and ears open and accepting new things from others should be your mantra to learn things.

Heavy equipment play a pivotal role in the construction segment. It is said that the companies who have the best machines and backed with a better workforce can stand tall at all times. So just having modern heavy equipment is not going to help you. You also need to back it up with efficient workforce who knows well how to work on those machines or else it is futile to have them in the first place. Simultaneously, not all machines that have the modern look over it should be purchased. You may never need that stuff in your entire project work and hence there is no need to possess that in your arsenal. The better way to work it out is first know your requirements and then go for the purchase. Also, purchase of heavy equipment should be done after thoroughly scrutinizing your finances. Heavy equipment are expensive metals and you may not want to spend your money on something that you may not use for the time being.

Last but not the least; keep a tab on your finances. If you do not do that, then you will not know when you have exhausted all your resources in the spree of buying heavy equipment and stuff that you feel is important but now you do not have any money left to run the business. Many young entrepreneurs have gone through this situation and they have to ultimately take loans to run the business or simply give away the idea to continue any longer.

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Starting a construction business – start with demolition work

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

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

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

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

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Appoint expert mechanics to fix heavy equipment

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

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

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

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

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Heavy equipment tricks

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

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

Heavy equipment tricks make job simpler:-

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

Heavy equipment tricks used by engineers:-

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

Process to acquire a construction company

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

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

 

1.Initial contact:

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

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

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

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

 

2.Non-disclosure agreement:

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

 

3.Letter of intent

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

 

4.Due Diligence

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

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

 

5.Final negotiations

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

 

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