Author Archives: Kevin

Take rational decisions when it comes to budget of your construction company

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

The success of every business is largely determined on the way you plan it out and also the manner you execute those plans. It is evident that the actual will never be at par with the estimate, which means that things will never go exactly the way you planned it will work. There will always be some sort of deviations from what you have estimated. The ground situation will differ from what you have contemplated; but the thing that is crucial is the difference between the estimated and the actual. If the difference is huge then it is a problem. This means that you do not have complete control on your work and there is a chance that it is going in a haywire direction. Pertaining to construction business, one can never afford to let his budget go haywire. It will cost him more than anything else. Also, the company needs to ensure that the completion of the project happens within due course of time because if it kind of lags then it will eventually cost to the company.

Plan by considering every possible situation:-

When you prepare a budget for a construction project, you should take into consideration every minute detail. Right from the operating cost to the miscellaneous everything should be accounted. If you foresee any increase in the price of raw materials that should also be included in your budget. Try to keep your budget on a higher end so that if price of any commodity shoots up in the mid of the project you should not get a shock of your life and should rather take the inflated price comfortably. Also consider the cost that the company will have to bear for any unknown reasons. For instance, during monsoon if it rains a lot leading to blocking the roads then you might not receive the materials in time which will delay the work. However, you still have to pay your employees for the day. There may be other such instances that may crop up which will be temporary in nature but can have quite an effect on your business. So it is advisable to account those situations in your budgetary.

Review the ground situation with the estimates:-

Once you have laid your plan, it is highly significant that you review the ground happenings with the estimates on a periodical basis. This will let you know if you are falling short or if things are in your control. Also, if you figure out any complication then that can be taken care right at the beginning. You should weed out any problem right at the beginning and not keep it for the last minute. This is possible only if you do a reality check periodically. While you are reviewing the plan with the actual, get involved the men who are in charge of different departments so that they all know the ground reality and can pass on the message of the meeting to the lower ranks.

Steps taken to prevent early ageing of heavy equipment

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

There is no denying the fact that the heavy construction equipment come for quite an expensive price. However, they are very vulnerable to damage and premature ageing, especially when they are mishandled and not taken care of properly. Hence, if you want to make sure that there is no early ageing of heavy equipment, you need to take some preventive steps.

  • Add and Test Lubricants Frequently:

Lubricants play a very important role in any machinery function. It reduces the friction. When you use the good quality lubricants, it will work as a maintenance for the equipment and increase its life-span and performance.

You must also be careful about checking the oil and grease deposition on the pistons of your heavy equipment machinery. Always follow the recommendations and guidelines regarding the choice of lubricant.

  • Keep the Heavy Equipment Clean:

One of the most important steps that you need to take in order to increase the life of the heavy equipment and prevent its ageing is to keep it clean. The heavy construction equipment almost always works in a dusty and dirty environment, being exposed to mud, concrete, cement etc. these need to be cleaned off properly. Otherwise, it can deposit on the equipment or the machinery and make it weary. The machinery might be jammed and stop working.

  • Check for Signs of Wear:

What makes it easy to maintain the health and condition of your heavy equipment is that it will give you signs of wear. You should be careful about –

  • Any sort of vibration that comes from belts and gears
  • Any sort of sudden and high temperature increase
  • Any sort of shock in the machinery.

These can be the result of poor alignment, poor operating technique and poor use of lubrication. As soon as you experience any of these, you need to take special care of the equipment and get rid of these problems as soon as possible. What most people make the mistake about is that they continue using the equipment in that condition, until it completely stops working. And that is too late for the equipment to be saved.

  • Take for Regular Servicing:

Just as the private vehicles and commercial vehicles need maintenance and service for better performance, it is also important for the heavy equipment and construction machinery to be taken for service. Servicing will make sure that the machinery is cleaned, lubrication is proper and every single part of the equipment is in perfect working condition.

When you take the heavy equipment for service, they will take care of the –

  • Power transmission
  • Pulleys and V-belts
  • Seals, bearings, gaskets and other friction materials
  • Do a torque check on the bolts?

These are just a few of the many maintenance services that they will run.

  • Always have Trained Professionals:

The last but not least important step that every heavy equipment owner must be careful about is that only trained operators run the equipment. It is because; trained operators would know how to run the equipment and when to report a problem. This is crucial for the life of the machine and for preventing it from early ageing.

Buy and sell heavy equipment online

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

E-commerce has evolved majestically during the last 2 decades. Almost every company in today’s time is in some way or the other engaged in the online business. It means they either buy or sell their products online and this being their core business they tend to make good money from it. Probably a couple of decades ago, nobody must have thought that the E-commerce business will become such a big thing in the global market. However, now we are all in some way or the other are connected to it. We use all sorts of applications to buy and sell things online and this has been the trend of the day it seems. Taking this trend as the opportunity, the owners of heavy equipment have also plunged into the business and now want to sell heavy machines online. The buyers also prefer to buy it from an internet platform.

Connects you quickly to a lot of prospects:-

When you use an online platform to sell heavy equipment you are exposed to a lot of people who have similar needs for their business. They check your listing and if they find the machine valuable for their business they buy it online. The payment is also done through an internet gateway and once the seller receives the money, the item is shipped across. Unlike the conventional method where you do not get much exposure and hardly anybody get to know if you are selling a machine, the online platform just works the way you want it to. Remember that you are also exposed to international businesses and you should make it very clear on your listing if you are ready to ship the machine internationally. A seller needs to follow a lot of legal process to ship the item outside US. So before you take the call to go international, make sure that you are prepared to deal with the government procedures.

Buyers get multiple options:-

The buyers in turn have a lot to get by buying heavy equipment online. They get multiple options at their disposal and can make their choice from the given options. They can also review the ratings of the seller and accordingly can take a call if they would like to deal with that seller. Ideally, at the end of a transaction every seller is given a rating on the basis of how effective and transparent the transaction was. The buyer leaves a feedback mentioning his experience with the seller. So if the buyer had a good experience he can give him a good rating or else he can mark it as “Poor”. This will help others to know if the seller is at all worthy to be dealt with and the can accordingly decide on what they should do. So the buyer always has the option to check the listing of another seller and can also expect a better price as compared to the earlier guy.

It is not just heavy equipment but also ancillaries are sold on online platform. So if you want to buy an attachment or a part of the machine has gone faulty, you know where you can find them.

 

Renting an excavator

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Since the construction and heavy equipment industry has risen over the years so has many other industries that are associated with them have developed in these many years. Out of the many industries, one is renting heavy equipment. It is now never a problem to let out your machines as you will always find takers for it. Gone are the days where a person had to struggle giving ads in newspapers to find someone who wants to take the equipment on rent. Now people are educated about how to move ahead with renting equipment. There are number of ways by which you can rent your machine. You can get in touch with a rental company whose main focus is to find parties who have need to give the machine and rent as well as take it on rent. So primarily, they try and bring both the parties at a common place and strike a deal between them. The other option is going online and listing your machine there.

The heavy equipment that people take more than anything is an excavator. It seems that an excavator is quite a flexible machine which can be used for multiple purposes unlike other heavy equipment. You only need to change its attachments and it gets ready for work other than excavating. Due to its flexibility, it is probably the only machine that is high in demand and often gives the owner a good rental value. You can try and know the rental value of your machine from rental companies or from websites where people list their excavators on rent. That is really not a tough job and can help you to know the correct value of the excavator.

Ensure that the excavator is in good shape:-

Before you rent your excavator, it is very important to you ensure that the heavy equipment is in good working condition. If you see any issues with it, get it fixed before you rent it to someone. It creates unnecessary hassles if you hand over the stuff with some faults in it and without informing the user about it. They might even feel cheated and many not want to do any further business with you. This all puts you in a negative light which may turn uglier if he spreads it out to other people. You may find it hard to rent the excavator to anybody else. Also, paint the machine and make it look new every time before you rent it to a new person.

An agreement is mandatory:-

You are required to make an agreement where you explicitly state that you are giving the excavator on rental basis and the person will return it with no or minor wear and tear. Also mention the amount you will receive as rent on a monthly basis as well as the tenure of the contract. Any other details that you feel is important should be mentioned in the agreement. You can appoint an attorney for this purpose who can take care of this part.

Do not keep old heavy equipment for long – Sell them off

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

To expect a re-sale value on a used commodity is not wrong but if you expect to get a good price on an item that has nothing left in it, you may become highly disappointed. When it comes to heavy equipment you will also come across people who do not believe in buying new stuff. They see profit in buying old machines, renovating them and make them new. In this way they get heavy equipment at a cheaper price. But these guys do not buy machines that are extremely old and has absolutely no use. You can’t do any modification on them nor are they compatible for installing any modern features. It is just scrap and needs to be re-built all over again. This means that the seller if tries to sell such a stuff will get nothing but peanuts.

List it in an auction site:-

There are plenty of online websites that deals with auctioning heavy equipment and its parts. You can select one such site which is popular with people and list your heavy equipment out there. Please do mention the model number and the year the machine was made. Do mention about the recent changes that you have made in the machine. For instance, if you have painted the machine or have replaced any critical part of it that needs to be stated. The members of the site should know about the improvements that you have made on the machine. It will only help them to gain confidence on you and your product.

Sell it to a friend or amongst your peers:-

This is perhaps the safest way to sell your used heavy equipment. Your friend might have a need for the equipment and he has a lower budget. You can help him by selling your stuff at a lesser price. In this way, you do not have to hang around looking for buyers when you have one next to you. Let your friend inspect the machine and if he find it worthy, he will make an offer. However, if you offer him to buy quite an old model, he might not show any interest. For that matter, nobody will show any interest if you sell machines that are way back in time. They need machines that can support the modern technology and are also less expensive.

Sell it to heavy equipment workshop:-

If you do not get any buyer for your heavy equipment, you can sell it to a guy who runs heavy equipment workshop/company. They might be interested in buying it but they will not be ready to pay you the price that you expect. Ideally, these guys are the last option that people go for and they also know that. If you have to really do away with your machine and are not getting any takers then you have to take this as an option rather to sell it as scrap. These guys will anyways pay you more than a scrap dealer.

Right strategy is what you need to grow your construction company

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Before you start your day, you need to plan it well so that you can execute them and make your day somewhat useful. In the same fashion, while you are in the mode of setting up your construction company, it is important that you plan your things well so that you can execute them without any hassles. Please remember construction sector is one such sector where you can’t accurately assume anything. Situations may change anytime and you got to be ready to accept them and deal with them as and when they come up. Therefore you should be ready to take up any challenges that come your way. This preparedness to deal with any situation is possible if you have proper strategy in place. There are few things that are very crucial when it comes to laying down of strategies.

Strategies are often made by consulting the heads of all the departments. You need to know the ground situation before you come up with any plan. It is not feasible for you to know everything about all the sections of the company and this is why you need the help of the department heads to give inputs. Now once you have the inputs, you can put up your plan in front of them and check what they feel about it. Never plan something without a proper discussion. There has to be few Yes’s and No’s while you are in for a discussion and all of you have to come to a common ground. Once everybody is on a common ground, you can take that plan for implementation.

It is to be noted that not all plans are meant to be implemented right away. Some also needs to be kept in the parking lot so that it can be implemented at the right juncture. At the same time, the plans that you have executed should not be permanent in nature. Though you should give some time for it to work or to give desired results but if you see that it is not working, move on to something next before it causes severe damage to the growth prospect of the company. This movement of strategy is also known as flexibility which is the next important criteria towards the growth of the company. You should know when to move to the next plan and also you should not have difficulty while you are in switching mode.

Many companies find it difficult to switch plans. For instance if the prices of oil have risen drastically or the prices or raw materials have fallen, you should be ready to revamp your plans and perhaps do it all over again. Not doing things at the right time can cause severe problems to the company or at times you will not be able to make the most while others are minting money. You should also have the right people to get the job done. People who takes up their job passionately are needed to make hay while the sun shines.

Becoming employee centric construction company is difficult but achievable

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

We all want to work with a company that not only provide us with good growth but also takes interest about the welfare of its employees. Companies that provides us with good perks and facilities are hard to get by but if we ever land up in such a company we may not want to leave it unless and until we have a very strong reason for it. Companies on the other hand are focused on earning profits. They are ready to provide their employees with basic benefits that they are supposed to as per the guidelines laid by the law of the land but there are absolutely not ready to take the extra step to look after the welfare of their employees. They understand that their relationship with their employees is quite professional and they should not add anything more to it. This is the story of almost every industry irrespective of which sector one belongs to.

If we talk about construction companies, it is harder to find an employee centric company, a company that takes initiatives keep into consideration the betterment of its employees. But the point remains is it really so difficult for a construction company to think for the betterment of its people, the same people who works all day in the scorching heat of the sun and does not complain when there is storm and heavy rainfall and tries to remain punctual even when there is snow on the roads.

These sorts of guys should be rewarded with bonuses and extra pay and this is absolutely not difficult to do. A little raise in their salary or a monthly incentive can bring a big smile on their faces. In addition to this, you can also provide them with free medical insurance. In this case, they do not have to pay the premium of the insurance and will be covered against all ailments (as per the policy of the insurance company). The insurance companies will be more than happy to offer discounts on the insurance premium if the insurance is taken in bulk. So in this way, you get your employees covered against ailments and also against any accidents that happen in and outside the jobsite. If they want to add their family members as part of the medical insurance they can do so by paying the premium from their pocket. What you can try to do for them is get the premiums discounted so that they pay an amount that suits their budget.

All these features can also act as a good retention policy as well. Your employees will not leave you just because they have found a company who is ready to pay them more than what you do. That company may not provide them with these additional features which will act as a binding force and will kind of compel them to not leave your company. You only end up paying a little extra but in return you can enjoy the loyalty of your trusted employees.

Take suggestions before starting a construction company

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Before you get into anything big that can either shape up your career or can ruin it, it is very important that you sit with someone who knows about the subject and take adequate suggestion from him. Do not do anything in haste and for something that is so crucial for your life and career you just can’t take any chance on it. You have to be more than 100% sure of what you are doing and why you are doing. As long as you do not have the answers for your questions it will not be wise enough to get into it. We all want to have a business of our own where we do not have to work on other’s instructions. A place where we can take our own decisions and will not worry about what the boss will say. But to start your entrepreneurial journey you must ensure that you know the first step that you should take.

People who start their construction business are also found to be working with some other construction company. They may not be able to give their 100% to their business but they ensure one thing and that is they will have a source of income even if the business does not work. Now there are few people who are smarter than others. What they do is they stick around with a construction company but work there for few hours in a day and the rest of the time they devote it to their business. People come out with real smart ideas but the fact is they also get some ideas from others. They take sound advices from their peers and accordingly apply their mind to come out with a great idea.

Construction sector is one such business where you will not be able to understand the entire business in one life. It is pretty complex. People who have spent their entire life in this business at times learn a thing or two and also encounter situations where they have to seek for advices. They do have a team of advisors who are experts in their respective fields and they help the owner of the business to come to a decision. So when you intend to get into something as complex as this it is inevitable to not look for advice from an expert.

If you are already working in a construction company and have great rapport with the guys who are older than you and also far experienced than you, it makes ample of sense to approach them with the idea of starting a construction company. They will be the right folks to advice you on it. Their advices will be quite in-depth and will hardly miss out on any crucial point. Right from heavy equipment to hiring competent construction laborers they may speak to you about everything under the sun. Most importantly you should ask them to advice you on how to tackle the various challenges that you may encounter. You will learn the rest with experience.

Construction workers should know their worth

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

To know what we are really worth as far as our profession is concerned is a matter of pure confusion. Why it is confusing is because we actually do not know what the worth of your services is and this is why without knowing much about our worth we get ready to offer our services for a lesser price. This should really not happen because at the end of the day after having worked in a company for a couple of years when you actually know your price and also the fact that you are getting paid much lesser than what you should have been it causes great deal of frustration within yourself. Some even start to get the feeling of being cheated and then they start looking for some other organization again without knowing their current worth. It is therefore crucial to know how much you should be paid for your services keeping into consideration the talent and skill you possess and the amount of experience you have under your belt.

When we talk about the construction sector the most neglected genre of workers in terms of being the right amount of salary are the construction laborers. A construction laborer at the start of his career is paid quite low. That should be alright with them as they are gaining some experience and learning new things but as they grow a bit older in the company their package is not increased in the appropriate scale which leaves them with a poor pay package. Now as a result of this many construction laborers quit their job in the middle of a project and join some other contractor who pays them more than what they were getting. It often leaves the former company in a pickle and their project comes to a standstill.

Construction companies have taken this seriously and are now paying the laborers at par to the industry standards. The worrying part is not all construction companies are following the same route. There are still few small time companies who are exploiting the workers right left and center and the workers who do not know much about the worth of their services stay in the same company. Well the laborers should know about their rights and also what they should be paid. There is a standard rate across the industry and the companies are expected to pay their employees on those standards. The workers on the other hand should also check government websites that speaks in volumes about the rate per hour that should be paid to the laborers. Projects are completed on time because the workers work hard to get it done on time and if they are paid less then they have all the liberty to leave the company any moment.

They will also get work easily as they need not be highly qualified. All that is required from them is the knowledge to construct a building and if they possess that knowledge any construction company is ready to take them by paying them the standard rate.

Negligence of any form can turn out to be fatal in the construction business

Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

Right from our childhood we have the tendency to neglect things and feel that we can do it later. We just skip things for now and believe that someone else will do it for us or we will get it done some time later. We grow with the same tendency and then it starts getting costly to us. We can’t have the same approach that we had during our childhood days in our professional lives. It can have a nasty impact on our businesses and can hamper it big time. We need to take special care of things that are pending for a while and need to know the reasons why they are not done yet. Negligence of any form is fatal for any industry but when it comes to construction industry; it can become more damaging than ever. Here if you neglect important things there is every chance that it will back fire you and you end up paying a heavy price for it.

Negligence towards heavy equipment:-

Negligence of work can be of many forms. One can even be negligent towards heavy equipment. For instance, every machine do give some sort of signals become breaking down completely. Now, it is not a rocket science to comprehend those signals. One can easily understand those signals and work accordingly to fix the stuff. But if you are negligent towards fixing the machine and feel that you will do it later then there will come a time when you will not be able to get that thing to work. That will be followed by calling up a mechanic who might diagnose problems that can be fixed only if you change certain vital parts of the machine. In other words, it means that you now need to be ready to shell good sum of money on something that could have been managed effectively at the very moment you realized something wrong with it.

Negligence on part of stock keepers:-

Stock keepers are the ones who keep a stock of raw materials and whenever they feel that they may go short of materials they give an order to the suppliers who in turn transport the stuff to them. Negligence has been found by stock keepers who for some reason fail to provide orders of raw materials in time which leads to no work for a day or two. One needs to understand that the suppliers may also run out of stock and this is why it is important that you order the stuff in advance so that the suppliers have ample time to send it to you. In case of any eventuality, you do not run out of stock and the work continues. One can’t ever afford to be negligent during monsoon and winters as during these two seasons we experience numerous issues related to road blocks and accidents which can delay the delivery of raw materials. Keeping these things into consideration one must pro-actively order materials in advance and don’t fall into unnecessary chaos.