Taking the Risks out of Project Profitability With BIM

High risk, low margin. This all too familiar description of the construction industry is at the heart of contractors’ laser focus on bottom line profitability and overcoming the variables that can (and often do) go awry.

The proof of that challenge is in the numbers. According to KPMG’s “Climbing the Curve, 2015 Global Construction Project Owner’s Survey,” just a quarter of construction projects in the last three years came within 10 percent of their original deadlines. And Turner and Townsend’s 2016 International Construction Market Survey found that the average global construction project margin fell from an already low 6.3 percent in 2015 to 6.1 percent.

No matter the size of the project or the timeline, there has always been a harsh reality: Expect the unexpected. But what if you could remove more of the surprises and reduce risk—all with increased profits? 

State-Level GOP Dominance Yields Advancements in Pro-Merit Shop Policies

  Throughout the remarkable 2016 election cycle, the political media generated impressive ratings by bombarding voters with sensational and hyper-focused coverage of the contentious and divisive race for the White House and a handful of competitive U.S. Senate races. After the dust settled and voters elected a GOP-controlled Congress and White House, it became clear the media failed to give enough attention to one of the most important storylines in American politics: the GOP’s domination of Democrats in state government. 

State government policy is likely to impact America’s voters, businesses and the economy as much—or more than—anything coming out of Washington in 2017.  

The GOP now controls the most legislative seats since the founding of the party—helping to advance free enterprise-focused policies supported by Associated Builders and Contractors (ABC) and the merit shop contracting community. 

How do you tap into employees’ most valuable talents and talk to them about career advancement?

"One of our company’s greatest strengths is that it is employee owned. Our more than 85 shareholders come from every level, which means we have people on every job who have a personal stake in its success.

We also empower our employees, many of whom have been with us for more than 25 years, at the project level by implementing a flat organizational chart and giving them more control in the decision-making process. This approach has saved our clients millions of dollars."

Wired for Success

When Adam Ruff was promoted to field supervisor at Price Electric, Robins, Iowa, last year, he set some personal goals to help develop the company’s next crop of leaders, improve operational efficiencies and have a positive influence over a larger group of people. He can place a definitive checkmark next to that last goal now that he has been named Associated Builders andContractors’ (ABC) 2017 Craft Professional of the Year. Ruff received the award in front of hundreds of contractors, apprentices and their families at ABC’s Workforce Week, held in March in Fort Lauderdale, Fla.

Regain Control With Weather Monitoring

While weather is completely out of a contractor’s control, advances in technology have allowed inclement conditions to be better predicted—increasing worker safety, improving productivity and driving profitability. In an industry that is always on the go, companies adopting innovative technology early on can create more effective and efficient workplaces and jobsites. 

Both skilled and unskilled workers engage in a number of activities that put them at risk of injury and expose them to serious hazards even before factoring in dangerous weather conditions. Safety incidents or onsite injuries should never be a factor in finishing a project on time. When working outdoors, supervisors should continuously monitor weather conditions to keep their crews safe. 

Resolving Disputes and Negotiating Contracts Without Breaking the Bank

  Legal services are notoriously expensive, yet they are necessary to protect companies and their owners, assert legal rights, recover payment for construction services and defend against meritless claims. Attorneys are especially useful in developing and negotiating contracts and significant change orders, setting up corporate structures to minimize and maintain risk, resolving disputes through compromise or litigating them to judgment. From a construction executive’s viewpoint, legal services are like any other service: They must be managed with the goal of obtaining the most value for the lowest cost.

Reduce Risk Through Planning, Collaboration and Brainstorming

  Properly managing risk in the construction industry can have a major impact on project cost, schedule and resource use, potentially offering significant savings, according to a new Dodge Data & Analytics study. 

Produced in partnership with Alliant and supported by e-Builder and Procore, the “Managing Risk in the Construction Industry SmartMarket Report” reveals the top construction risks, their impact on the industry and the benefits associated with using specific risk evaluation and mitigation strategies. One clear finding that emerges from this data is that the industry’s growing focus on collaboration and integration may be an important step toward reducing construction risk.

Qualifying for and Pursuing The R&D Tax Credit

When the topic of research and development (R&D) tax credits is discussed, chemists with lab beakers typically come to mind. In reality, it’s more accurate to envision construction superintendents and engineers in hardhats on a jobsite. More construction companies are taking advantage of the credit than ever before and are realizing substantial savings in the process. 

Recent changes in applicable law have allowed construction companies, engineering firms and architectural firms to reap the benefits of R&D incentives that come in the form of a federal tax credit to offset tax liabilities dollar for dollar. In addition to the federal credit, most states have R&D tax credits of their own. The combination of these incentives can provide major savings for qualifying companies.

Meet the Competitors

Associated Builders and Contractors’ (ABC) 30th annual National Craft Championships (NCC), held March 1-2 in Fort Lauderdale, Fla., raises the profile of careers in construction and highlights the $1.1 billion that ABC member companies spend annually on workforce development. Each year, the competition draws some of the nation’s most talented craft professionals and highlights the important role that skilled craft training plays in the construction industry.

Reduce Lien Exposure With Anti-Assignment Clauses

Property owners, general contractors, subcontractors and materials providers must understand their rights and obligations with respect to construction liens in order to avoid delays in finalizing a project (from the perspective of the property owner) or to avoid forfeiting lien rights (from the perspective of the subcontractor).
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