Course Title:

Tactics to Protect Your Construction Business

Trust me...

After three decades in construction, I have realized that you have to be constantly on guard against people and/or circumstances that can endanger your company.

These are the go-to management tools, documents and procedures you must implement if your business is going to survive.

You will use these survival tools to placate government regulators, keep your clients in line, maintain job-site quality with your subcontractors and handle the multiple risks you face when operating a construction company.

Not always nice, but always necessary. These lessons are fundamental to protecting your business in a selfish and dangerous world.

Protecting your company means managing risk

There are three steps to managing risk:

Identify the risk → Develop a risk management strategy → Implement the strategy

In this course, the first section, the Risk Management Decision Model, will help identify the risks faced in managing a construction company.

The second section deals with developing a risk management mindset.

The remaining sections explain, and provide tools for, some of the most helpful risk management strategies I have developed in my construction company.

Course Information

Course Instructor

Dennis Dennis Author
 

Free 3-month access

FREE
3 months of access

Feel free to contact Dennis if you have additional questions. d.anderson@builder-resources.com.

If you need additional access following the three months, just register again.

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Use the Risk Management Decision Model

The Model
Rank your Risk. This useful decision model will show which areas of risk should be considered first.

Learn how Business Management = Risk Management

Risk Taker vs. Risk Manager
You need to be a RISK TAKER to go into business…You need to be a RISK MANAGER to succeed in business.
Types of Risks Contractors Face
A construction job site is full of risks. So is a construction company.
What Does a $100,000 Business Risk Look Like?
Real-world horror stories from my own past and from client experiences.

Contract the Build

Intro to the Sample Client Contracts
This lesson contains a list of the business considerations you should include in your contracting package.
NAHB Residential Construction Guidelines Booklet
Acquiring this booklet from the NAHB will be one of the smartest risk management tactics you ever employ. Learn how to use the booklet in this lesson.
Addenda for the Standard Real Estate Sales Contract
If you build spec, and wind up selling the project before completion, this document provides reminders of some important considerations in the transaction. Selling a spec project is good, selling it smart is even better.

Set Initial Specifications and Expectations

Establishing Initial Specifications
Use the Initial Specifications document to establish and document the baseline materials list from which you develop your proposal. Eliminate the confusion your clients might have about what is or is not a change to their contract.
Worksheet for Standard and Variance Specifications
How to complete and use the Initial Specifications document to mitigate client transaction risk in your construction business.
Old-School Specifications Detail Fill-In
An alternative Initial Specifications form. Not as comprehensive as the Initial Specifications document, but it is more visual. You can also use this form as a training tool for the Client.

Control Risk At the Jobsite

Safety Checklist for the Jobsite
Have a series of these completed and on hand when OSHA comes snooping around. Show that you are serious about safety.
Daily Job Progress Report
If it isn’t written down, it didn’t happen. Nothing is more effective at answering vague accusations than a written record of what happened on the jobsite day-by-day.
Job Board
Get all the important jobsite information gathered into one location on your jobsite. The Job Board is the answer for jobsite communication.
Job Binder
When all the information relating to a project is gathered in one place in your office, you can sleep better knowing that the details are handled. The Job Binder is a low-cost, efficient way to accomplish that task.
Permit Checklist
Shorten up the permit issue lag by having everything you need in the first permit submission. This comprehensive, editable checklist can save you time, save you money, and help your processes be more professional.

Manage the Client Relationship During the Build

Intro to the Client Management Documents
Here are five of the most important documents in the Builder Academy library. The Confirmation of Instructions, Notice of Completion, Draw Request, Delay Notice and Restart Notice are key to controlling your client relationship. Failure to use these documents could put your business at risk.
SC – Specification Change
Clarify what the Buyer wants. Inform the Buyer of the effects of changes on the finances and the schedule for the project. The Confirmation of Instructions is the document to accomplish these important tasks.
NOA – Notice of Acceptance
A series of mini-punchlists and signed acceptances is far superior to the usual practice of the final walkthrough. See how to use this document to move the project along and protect your company at the same time.
DR – Draw Request
This draw request contains all the information the Buyer and the Lender will need to make payment. Speed the draw payment up with this document.
DN – Delay Notice
If you are going to stop production on a project, you must document why, provide remedies for the problem, and explain the impact on the schedule of the decision. This document provides that information to the client and for your records.
RN – Restart Notice
The Restart Notice documents the remedies that offset the Delay Notice and, importantly, document the effect on the building schedule. Like peanut butter and jelly, the two documents have to work together.

Guarantee Subcontractor Quality

Intro to Subcontractor Management System
One of the biggest frustrations and largest source of profit slippage is dealing with subs who aren’t on the same track as you. Use the Terms and Conditions, Scope of Work, Work Order, and Inspection Report to get the results you want at the jobsite. Control jobsite quality and profit slippage with these documents.
T&C – Terms and Conditions 
If you want to be a member of my team, this is how you will conduct yourself.
SOW – Scope of Work
If you want to work on my project, this is how you will build it.
WO – Work Order
If you do what I need done, this is how much you will be paid.
IR – Inspection Report
If you have done it the way I want it done, I’ll pay you.

Transfer Subcontractor Performance Risk

Monitor Subcontractor Insurance Coverage (Quickbooks and Asana)
A major portion of the risk you face comes from the work of your subcontractors. Your insurance carrier requires that you monitor the insurance coverages of your subs. Here is how to set up and use the Sub Insurance Coverage Monitor in Quickbooks Desktop and Asana.