Monthly Archives: January 2017

Heavy equipment used to a rapid transit system

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For different kinds of construction projects, we require different types of heavy equipment. So if one has just started a construction company and is checking out for the machine he should possess to start working, quite frankly he will not find one. However, once he has been able to bag a project he can start looking for the heavy equipment using which he can start the work. One type of heavy equipment can’t be used for all kinds of work. For instance, you can’t use a loader to roll the roads. You need a roller for that purpose and if you try using other machines then you may not be able to do the work as precisely as you would have been able to by using the right sort of machine. A construction company owner should pick the machines on the basis of the kind of projects he generally wants to work.

There are some construction companies who specialize in constructing roads. So you will find all the necessary heavy equipment required for road construction at their disposal. In case if they do not have it with them they will manage to buy one or get it on rent. For companies who take the project of constructing a subway, they got to be really choosy with the kind of machines they are using. Ideally, most construction companies all around the world use Tunnel Boring Machine also known as (TBM) and other equipment that are primarily used to complement TBM’s during construction of Subways.

Tunnel Boring Machine is made of a rotating cutter-head that is located at the front of cylindrical steel shell this is pushed forward to excavate the ground. The steel shield is used to support the excavated earth until the lining of the final tunnel is constructed at the back of the shield. Hydraulic jacks are being used for propulsion that pushes against the vertical tunnel lining system. The material that the tunnel boring machine generates during this process is removed by a conveyor system and ferried away in trucks.

As the tunnel boring system gets ready to move to the next level, liners are placed behind the machine to form the tunnel. These liners are nothing but pre-case concrete tunnel segments and are carried in huge trucks to the construction site. Now while the tunnel boring machine is working all throughout the day, it causes little or no disruption to the surface above. So people walking on the surface of the road may not even know what is happening just right down under him. Once the job is done, the tunnel boring machine is broken down into parts so that it can be hauled to the next jobsite and can be restructured as per the design of the subway. So before the tunnel boring machine and the liners go to the next jobsite, the preliminary works are already done and the charge is given to the machine once it arrives at the site.

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Being in the company of good people is crucial in construction industry

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We generally meet all kinds of people when we are associated with an industry like construction. Generally people are tends to be good but some may not have that good intention. Hence, it is very crucial that you pick the people whom you feel that you can be compatible with. This does not mean that you will not have any relation with guys whom you feel does not fall in your compatibility zone. You will maintain your relationship with everyone but will restrict yourself to few people rather than getting open to everyone. If you make yourself available to everyone, there are chances that people might take undue advantage which will not be in anyway healthy for you. However, if you are in the company of people whom you trust, there are lesser chances that they will ever cheat on you.

Threat of losing project/client:-

If you get yourself in the company of wrong guys who may pose well to you, they might try to get info of your work and you never know when they will snatch away your project and start working on it. There have been numerous such cases where contractors have lost their project after they came into contact with someone they hardly knew and gave too much space to them. They on the other hand took as much info as they can to snatch away the project or just the client. They established their contact with the clients and ensured that the future projects are given to them. By the time the contractor came to know about this, he has already lost the client.

You will grow in the company of good people:-

Construction sector can often show you turbulent times. This being a dynamic industry, we can face any sort of threat from any corner. Therefore, it is important that you be in the company of people you know and whom you can trust. They might come for your help during your bad phase and bail you out. Alternatively, they can also give you valuable advice that you may hardly get from people in this circle. At times, this advice helps you a great deal. You might have taken a stand on the basis of certain information which may or may not be correct. However, you have a slight confusion on this and want to take a second opinion. Therefore, you decide to discuss it with your guys and you get to know more insights that you were complete unaware of. This eventually clears your thoughts and you are able to take a wise decision thus having a positive impact on your company.

Be in touch with them even if they are not your employees:-

We feel sad when we lose men who served our company for years and now want to retire. Even if they retire, they are very much a part of the company as they have served it for years. Therefore, being in touch with such people can always be beneficial for the company. They can guide you in difficult times and help you come out of a crooked situation.

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Want to rent/buy heavy equipment. Avoid involving middlemen

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Heavy equipment are highly expensive items and people who deal with buying, selling or renting heavy equipment usually earns good commission out of it. However, the person who has to pay commission may not find himself in a comfortable environment to pay money just to procure machines. The buyer in this case pays to two parties. First it is the seller and the next is the agent. So eventually, he ends up paying more for the same item and therefore he may not be so happy with the transaction. On the other hand, the seller also needs to pay his part of commission to the agent. This means that the agent gets a good deal of money from both the parties. His part of work was to understand the needs of the buyer and then search for a seller who is selling exactly what the buyer is looking for and ultimately introduce both the parties to each other. He needs to push the buyer a bit to buy the machine and if he gets convinced, the sale is done and he gets the commission.

The seller does not have much to lose here as he gets rid of the machine and does not mind paying someone who has helped him to get it sold. The problem is with the buyer who has to pay for the heavy equipment and also to the agent. Now by any way if he can manage to get the agent out and deal directly with the seller he does not have to pay any cut to anybody. So just pay the price of the machine and it belongs to you. The difficult part would be to locate the seller who will have exactly the stuff he needs.

Well there is a solution to this. We have many online portals that deal with buying, selling and renting of heavy equipment. So all you need to do is become a member of one such website and search for the heavy equipment that you require for your business. You will find almost everything under the sun. Right from scrapers to loaders and from CAT to Volvo, you will find a seller for all kinds of heavy equipment. The important part for you would be to join the portal that does not charge any fee from the buyer. The seller usually does not mind paying a small amount as fees to the online portal.

There are also some agents who work in the same manner as the online portals do. There is no harm in using the service of the agents as long as they do not bill you for earning commission. So you got to be pretty sure that they are not charging anything from the buyer and if they do, make it clear to them that you do not want their service as you do not want to pay commission to them. Try to avoid the involvement of middlemen ad it can save lot of your hard earned money.

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Equipment purchase advice

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An advice received from a knowledgeable person boosts our confidence towards our commitment in accomplishing a task. We as humans are meant to take advices from people in things that we do not know and also at times we go for advices for things that we know. We just want to be double sure about what we are doing and therefore we want to hear the person out and whatever he speaks go in sync with what we have thought, then we go for it.

So advice is something that is not only taken by guys who do not know about a particular thing but also by folks who knows about their stuff but just want to get a sort of assurance to their thoughts. Advices become all the more important when it is asked at critical junctures like a team of junior doctors operating a patient and want to confirm things from their senior or when you are about to purchase a new apartment and need advice from your attorney and from other people who are associated with the sale of the property.

Advice coming from an expert makes a lot of sense at critical junctures and especially when it is related to construction business. You need all sorts of advices from various sections as nothing is less important in that form of a business. Advices pertaining to purchase of heavy equipment is of immense importance for any construction house no matter how big or small his business is. It becomes more important when the scale of your business is big and any incorrect decision can take a big toll on it. For big construction companies, a lot of planning is needed before they go for buying heavy equipment. Heavy equipment are basically bought on the basis of the current requirement and how it can be used for future projects. It makes no sense to use the machines for just one big project and then sell it off at a much lesser price.

Involving men and take their inputs:-

Involvement of men who can give inputs on the purchase of heavy equipment is crucial for taking decisions. You have to ask them to go through the entire project and check what kind of heavy equipment will be required and at what stages they will be needed. You may not buy everything at one stroke. Just when you see the requirement is felt, you can go for the purchase. Now selection of heavy equipment is imperative. Get all the minds rolling on the model, brand and type of heavy equipment required for the work? Their advices will be will really helpful for you to take the final call.

Brand new or used heavy equipment:-

We often see ourselves in a dilemma when we have to decide if we should go for brand new or used heavy equipment. Probably due to lack of experience or knowledge we are unable to make our mind on this and desperately need an expert advice. This is where you talk to someone who is a part of this industry for long and take this advice.

Purchasing heavy equipment can really become a pain and only an advice from a knowledgeable person can make you feel comfortable.

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Protect your heavy equipment during winter

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Winter has often caused enormous problems for heavy equipment owners. Construction companies have at times suffered huge losses as they were unable to get the machine to operate. This is therefore very crucial to protect your heavy equipment during this time of the year when there is heavy snow on the road and the weather out is absolutely chilled. One of the prime reasons why heavy equipment fail to work during winters is lack of maintenance. You have to make it a point to service the heavy equipment regularly or else it is bound to give problems at some point or the other and winters can be really vulnerable.

Heavy equipment like graders that are used to get snow off the road should be really well maintained. Right from the engine to its blades every part of the heavy equipment plays an important role in removing snow. Just before winter arrives, you should do some tests with the machine and check if everything is in order. If it gives slightest of indication of any issues, you should get it resolved from a mechanic. If at all you have the skill to fix heavy equipment reading the user manual you can try that out as well.

Read user manual to protect heavy equipment during winter:-

The user manual of particular heavy equipment is quite a crucial book and one should always keep it handy. It speaks in volumes about the way and methods that one can adopt to keep the machine active and running during any weather of the year. So just before the onset of winter the heavy equipment owner should check the manual and see what care has been advised by the book. Try to follow the user guide as much as you can. It will really help you to lengthen the overall life of the machine and also protect it during winter.

Keep your heavy equipment parts well lubricated:-

Start with the engine oil and end to the various crucial parts of the heavy equipment which require oil to stay lubricated. The oil that you use for the engine should match the outside temperature and try to use low viscosity oil that flows faster. Changing engine oil is most crucial and probably the most neglected part in this business. People have to compensate it with changing the engine or other vital parts which are damn expensive. Coolant is another thing that you must apply on the machine. Try to keep a mixture of 70% coolant and 30% water during the winters and in other seasons, it should be 50:50. Also you must ensure that the radiator is filled to the cap. This should be done before the start of the winter.

Apply tire chains so that it does not skid:-

While the heavy equipment is busy removing snow, there is a high possibility that it skids off from the road and hit the other lane. This could be dangerous and therefore applying tire chains is of utter importance. It will protect the tires from skidding and will ensure the safety of the operator and the machine.

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Selling a backhoe loader

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We live in a world where we have to multitask to keep things in place and also expect the same from others. Multitasking has now become the order of the day. We even need home appliances that can multitask. In an environment like this, it has become very important that we also deal with machines required in our work to perform multitasking activity. In the construction business, we have few heavy equipment that fit perfectly in the role of a multitask machine. Heavy equipment like excavator and backhoe loader are absolute multitasking machines as you can get to do more than one work at a time and also multiple kind of work in phases. This is perhaps the reason why a person never has problems to sell a backhoe loader. If he is trying to sell a second hand loader, then he needs to ensure that the machine is doing well and the dents in the body of the machine are well removed and also painted before it changes hands.

A backhoe loader is heavy equipment that has the ability to work in any treacherous work or weather condition. They normally do not give up easily and is worth every penny the owner puts into it. Other form of heavy equipment if put in tough working condition will soon generate complication and the need to call a mechanic to fix the machine arises. Having said that, one also needs to check the brand from where he is buying the equipment. If the machine is of a good brand then the chances of having a mechanic working on the machine diminishes. But as far as a backhoe loader is concerned, it normally does not give much complication and especially when it comes from a renowned brand, the frequency of it breaking down becomes all the more lesser.

A contractor can use a loader for 5 years and can still expect a good price for it. He only needs to know the various platforms where he can sell his machine. Other than that, people are always ready to pay the price of a worthy item.

Selling it through a dealer can be a safer way to sell the backhoe loader. Here the dealer will take the onus to take the machine from your place and ship it to the new owner. It also becomes his responsibility to find a buyer for you. It is just that you have to pay a cut to the dealer for the successful sale. The dealer on the other hand will also give you advices on what you can do to get a better price. For instance, he may ask you to paint the machine in case if it is looking a bit old or to change the faulty parts if any. So you will get some good help and also an opportunity to fix the machine before you sell it to the next person. Before you contact the dealer for the sale, it is crucial that you check his fees. It should not be exorbitantly high that you find to be cheated later.

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Placing a lien when you are already paid can be a serious problem

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There was a time when construction companies once having taken a project will complete the entire project on their own. They will not like the involvement of any other party in the work. However, the dynamics have changed completely. Now big construction companies only take up projects and let it to other construction companies who further sub-let it to small construction companies or contractors. So one big project is worked by many different companies and the main company who initially took the work has to ensure that all the parties involved in this work are paid in full because if either of the party is not paid then it can have serious repercussion on the project.

The parties who are unpaid can place a lien on the project which means that only when they are paid first that the owner of the project will be able to sell anything to anybody. It also means that the parties who are unpaid and have placed a lien are in a way the actual holders of the property. However, once they are paid in full they will withdraw their lien and then it becomes lien free. As a lien on a project can have serious impact on the project owner in the same fashion if someone has wrongfully placed a lien to harass the project owner, it can again have serious impact on the person for taking incorrect advantage of the lien. Contractors and sub-contractors are allowed to place lien so that they can safeguard their interest if they are not paid by the project owner. But this should not be in any way misused or else the entire purpose of having a mechanism like this goes for a toss.

The law in the United States is strict enough to weed out any menace like this. People who take place wrong liens are punished once they are proven guilty. However, an equal opportunity is given to both the project owner and the contractor to prove their point and if it is found that the project giver has paid in full but it was because of some kind of confusion the contractor did not receive the money and placed a lien, then the court tries to clear out the confusion and at times also gives the contractor a warning to check things first before placing a lien.

Ideally, a lien is supposed to be placed after a series of discussion between the project owner and the contractor and nothing has come out of it. One can’t just go and place a lien when things can be solved via discussion. Placing a lien should be the last option. Therefore, it is suggested that the contractor gives ample of time to the project owner to pay him for his work. If he places a lien without giving sufficient time, it may back-fire him. By no means should the contractor do anything that will place him into problems. If proven guilty he may end up paying good chunk of money as penalty and may also have to be behind bars for few months.

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What is the Construction Forecast for 2017?

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The year 2016 is almost at its end and business honchos across various industries are trying to find out how the year 2016 was for them. This year may have been great for few industries and for the rest not that great. So since this year is about to end market pundits are busy contemplating how the year 2017 will be for them and what it will bring along with it. As far as the construction industry is concerned it was a busy year for this industry and is also expected to continue its legacy in the forthcoming year. Construction industry across various sectors has seen phenomenal growth in the past year particularly the commercial construction sectors which is considered to be in the most profitable zone and is also expected to growth at the rate of 6 percent per annum.

Well there are some industry experts who feel otherwise and they predict a slight fall in the commercial construction sector but will remain steady. So we will not have to fear about any job cuts and things like that. They also believe that the institutional sectors will fare better than last year. These estimates are coming from experts who have been studying the market for years and on the basis of some research they put their rationale. It is not always that they have to be correct with what they say about the market but construction industry far and wide likes to go with their study and follow their suggestions. The year 2015 was an excellent one as far as the US market is concerned. The demand of hotels, amusement parks, commercial spaces and stuff has only increased its demand further. This demand is not going to die down anytime soon and therefore we can expect a bright 2017.

More so, after Donald Trump becoming the President of the United States, the chances of the growth of the construction industry has grown to be brighter. Many believe that since the President has its hand in the real estate business, he will probably not let it go down by any means. Keeping the influence of politicians in the construction industry aside, there are still number of reasons why one should believe that the year 2017 will be a better one for newcomers as well as for the ones who have been in this industry for years. According to Dodge Data and Analytics it is presumed that the overall industry will grow from 5% to 713 billion dollar which will be an overall gain of 11%as compared to 2015 and 2% as compared to 2016.

It was the statistics of Dodge Data and Analytics that had also forecasted for 2016 and said the beginning will be a bit sluggish followed by a rise in the sector post the mid of 2016. Things were more or less correct as per their assumption and we saw some real big projects which includes the liquefied natural gas export terminal that has been set up in Texas. More projects like this followed real quickly and it shaped the size of the construction industry for better.

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Small contractors can quickly get small projects

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We usually have a belief that it is only the big construction companies that can make most of the monies in the construction industry. However, this belief of ours is no longer true and even small time contractors are able to make good money by taking small projects. Unlike big construction houses, who find it difficult to get projects, small contractors do not experience this issue so severely and always tend to get few projects at quick intervals. Projects such as constructing a small road or clearing up the garden are works that are not so difficult to get. However, these days many people tend to do the work on their own; but at times, they need help of professionals and this is when the contractors come handy.

The prerequisites that a small contractor should always keep in mind are mentioned below.

Should have good sales and marketing segment:-

In order to keep your business moving, it is very important that people should know about you and your business. If you want to keep your business limited within your city limits, you then have to ensure that the sales and marketing team of your company approaches people who may need your service. Since you are a small contractor, not everybody may know about you and this is why you need a strong sales and marketing team that will pervade the word to people and also check if there is anybody who is looking for a service that you are offering.

Goodwill of your company is the key for expansion:-

If you have made a good reputation in the construction market, be rest assured that you will keep getting work. Other than having a strong marketing team, goodwill of your company plays a key role in determining how soon you will be able to expand your business. Like every other businessman, you would want to expand your business and in order to do this, the goodwill can be very crucial. It is therefore essential that you maintain the quality of your work and try to satisfy your clients. Your clients will want you to give them excellent work by charging less. It depends upon your skill on how you negotiate with them and get the money that you deserve.

Have the right set of heavy equipment:-

A business moves on certain plans. You need to ensure that you incorporate the right set of heavy equipment in your business plans. Not having the machinery you need to get the work done will only lead to complications and that will cost you dearly. So before you start the job, do a survey of the field and check what you may need to complete the work. Also see how many days it may take to get the work done. You should not commit something and later on find yourself incapable of fulfilling it. According to the survey, you can arrange the equipment you may need for completing the job. Just in case, you don’t have heavy equipment with you, you can try to get it on rent so that it doesn’t cost you a lot.

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The first few years decides your future in the construction industry

Worldwide, construction industry shows an enormous growth potential. It is a good career option for those looking for job satisfaction and lifelong learning opportunities. It involves variations in jobs such as constructing a residential apartment/house, institutional and commercial constructions, heavy industrial construction and civil engineering such as building of bridges, dams and highways. The construction process can be summarized as comprising of design, construction, operation, maintenance, renovation and demolition. It is important to understand that construction industry is very different and complex as compared to other industries since it has a number of variables. Each project is unique with different nature of work, placed on different locations, involves different types of skilled and unskilled labours, and produce different types of products. In the modern era, the large scale projects make use of increased automation and more complex processes. Due to its extremely challenging nature of work, there is existence of hazard during every project. Thus, construction industry is regarded as a high risk work environment as compared to others.

 

Although this being the case, in last few decades construction industry has shown a speedy growth. The initial years are very important for ‘a beginner/starter’ in order to have good future. Since it directly impacts life of people, hence building strong and reliable structures becomes necessary to gain life-long confidence and trust of people. This leads to increase in number of customers and thereby generation of a brand name. However, this journey may not be easy due to number of variables.

The following are some of the important variables which need to be considered for gaining initial success in the construction industry:

  1. Good and ample financial resources.
  2. Study of the location and the climate conditions. Be aware of the potential dangers.
  3. Employing professionals with construction management degrees: they have knowledge about building a structure. They are analytical and have good problem solving abilities.
  4. Employing educated and skilled laborers with an aim to retain them permanently rather than on contract.
  5. Due to rapid evolution of technologies training needs to be imparted to the workforce (labor, professionals and management).
  6. Encouraging good partnership, leadership, and teamwork
  7. Investing in R&D activities to enable high quality construction
  8. Good planning and effective execution so that work progresses in a smooth way.
  9. Health and safety of construction workforce is important to avoid fatal injuries/deaths. This will benefit in terms of time, cost and daily operation. Hence, it is essential to set up a safety culture for good working environment.
  10. Affordability, delivery on time and few occupant related illness and injuries.
  11. Constructions should be environmentally safe, healthy and fulfilling human needs.

Among these, the construction quality and occupational safety and health are fundamental issues to be given priority. When all these variables are considered and accordingly work is planned, it will lead to 90% success in the construction activities and lead to safe and healthy constructions. This enables to win customer’s trust and will guarantee success in future of construction industry.