How to design a Bonus Plan for contracting


You’ve probably heard it many times: Incentive Plans in the construction industry (this includes all sub-contractors) may actually be counterproductive. Employees find out how the system and what began as an attempt to motivate and reward employees blows up in the face of management. Not only that, ill-defined incentive programs can be very effective in motivation than being insensitive to the company’s profits.

A good example is to use a bonus system for rewarding hours of work under the budget. Indeed, assessing work is the most difficult of bidding variables-especially when crews are new or capabilities are largely unknown. What can happen is the job gets done quickly and rework costs addressing quality issues can eat up the benefits of the effort. Employees enjoy but not the company. Remember, rework has a triple cost: the first attempt, the rework and the opportunity cost of using workers dedicated to rework on new profit work

Most contractors have a weak understanding of their own economic .. They are not sure what their total labor costs are. They are not sure what the cost is, in fact, nor how it should be allocated. They do not understand how to properly engineer profit jobs. They have little idea of ​​what the load neither their nor how to use it to their advantage. Even worse, most contractors do not really know what profits they make actually the work of

To build an effective incentive system, contractors must understand the financial position of !; something they should know in any case. For workers in the field (Direct Labor) it involves the use of proceeds over the amount of six months, and shoed annual administrative employees (Overhead labor).

Here is an example of incentivizing direct labor. Each job is predicted profit in the budget. Whenever a job is more profitable to predict, a certain percentage of the excess goes into the bonus account. Job foremen get a certain percentage of the pot and each employee receives a certain percentage depending on the longevity of the company. For the administration, the company reaches breakeven for the year, a certain percentage of the profits will be divided between employees. Exactly how bonuses are distributed can decide on such items as a percentage of salary, longevity or importance as defined by the Board.

Bonus incentive programs must be clearly understood by all employees and monitored aggressively. Consideration must be taken to avoid untreated rework for each job. Also incentive plan must be based on objective criteria as much as possible. Bottom-line, properly designed and measurable bonus system should be applied consistently and without notice. But get this :. A conceptual based bonus plan should be strictly avoided


Top Ten Factors running a successful building contractor business


It is not easy to run a construction business. There are many pitfalls and ways to lose money, but if you follow a few basic steps you can not only survive but become very rich. Many successful construction contractors have learned there are certain things you absolutely must do what is right all the time and specific skills you need or get to do it in this very competitive industry. In this article, I will summarize what it takes to be a successful construction contractor to the importance of

important factor :. Hands on experience

Do not even think about starting a construction contracting business unless you have at least five years of savings (which means, in general, not specific) construction experience. The only exception to this is if you intend to specialize in one area and one area only. We call this niche. Niche can be very profitable, but they can also go away, changed or replaced by technology, new products, changes in the industry or societal changes. The best chance for success in the general contracting company to gain experience to do everything. This general experience has many benefits. It gives you the ability to identify and hire competent individuals, fire incompetent ones, appreciate the good work product and identify poor work product. Probably the most important thing it gives you is the ability to transition from being a technician to be a manager. The best experience comes from small and mid-sized construction companies that need to be jack of all trades. Larger companies tend to pigeonhole you into niches. It’s OK if the business is a niche, but if you start general contractor construction company with skills in just a few niche areas, you will not unless you hire a weakness

Second most important factor .: Outstanding Accounting System

If you do not have a sound accounting system construction business will ultimately fail. This CPA has seen this too many times than I care to recount. Sound accounting system allow you to assess whether you make the work of the job itself. To go with your gut instinct is dangerous and fraught with danger. A sound accounting system helps you to find the things you do right on each job and the mistakes you made. Numbers do not lie. Unfortunately, my experience has shown me that most housebuilding pay little attention to their accounting systems. There is a fear that the proper accounting will put the business owner up for higher taxes. Thus, the cash received on the work and the money paid out go unreported in an effort to avoid tax. What a mistake. I do not care how great your gut feeling on every job, if you do not have an accounting of every penny of each job, you can be sure that you are flying blind and losing money on every job. You have to go out of business and family will suffer. If you decide to start your own business you have to act like a professional business owner it means to create a sound accounting system. Failed accounting led to litigation, failure and bankruptcy

The third important factor :. Effective management of

When you have hands on experience in the industry, forged by many years (at least five years) working in all areas of the construction business, you are better able to make the transition from technician to the manager. Effective management requires that you have sound procedures in many areas of your business. Well-defined work product process, accompanied by project-specific checklists, allows you to drill staff on all aspects of project work within. You should have a working product process with accompanying checklists for just about all major projects within the work. This eliminates human error and allows you to make corrections before the project is formally completed. It is the owners of the construction company # 1 management tool. You will develop a process for each job and each project. This process must be written and stored in binders for each job, along with the project checklist. Projects checklist should calendarized. Jobs binders website should include the following:

Tab # 1 – A copy of the signed contract and any change orders.

Tab 2 – The budget for the work. The budget for each change to.

Tab # 3 – Accounting for income and expenses. Income components would include an offer price, money, either deposits or stage of the project is completed and the funds received for change orders.

Tab # 4 – Task List Summary.

Tab # 5 – Projects # 1 Process Summary and Checklist.

Tab # 6 – Project # 2 Process Summary and Checklist.


Last Tab – Customer sign off on the letter completed work along with standard testimonial letter signed by the client, listing the customer’s name and contact information along with permission to use the testimony in marketing and as a reference for potential customers. You must export a copy of each testimonial letter to the special binder that you will take with you every prospect. This testimony binder may be the only thing that separates you from the competition. It provides assurance that the prospects you take customer satisfaction very seriously and can be the difference maker. It makes the prospect a chance to reach out to previous customers to get the references. It also shows the potential business is very organized and well run. Finally, the image of before and after each job in this binder

The fourth most important factor :. Business Partnerships Strong

Stable competent subcontractors who have years of experience working together is critical to the success of the work. Each work is a team effort and a strong network of qualified individuals / companies available for you for each job, and who understand your business processes, will make every job run much more efficiently. Efficiency and competence = profit per job

Fifth important factor :. Project Bidding Process

You can be the most skilled, best managed construction company, with constant talented subcontractors and still go out of business if you do not have a strong process in place to offers for every job. You can lose your shirt if you underbid work. How does this work? The most common cause of dumping is not to do your homework and rely on gut or unverified food rather than fail safe process of checking and double checking every cost within each project. The devil in any construction work is in the details. The bidding process is very much like a business plan for each job. You will find every project, every cost and what the cost will be checked and double checked before bidding the job. Since many construction contractors go wrong to estimate the cost of projects wrong. This false estimates are caused by faulty reasoning tasks and associated costs, as a result of not exactly confirm and again to verify each project and each costs. It is a painstaking process, but you must get the right offers. Your assumptions each project will be vetted not once but at least twice. You know the rule: measure twice cut once. This adage is especially true in the bidding process

Sixth important factor :. Marketing

All construction companies understand the importance of referrals. Most of your potential customers come by recommendation. But the reference is not enough. What should be part of a marketing tool belt?

1. You should have an active website that contains customer stories front and center.

2. You should join the network group.

3. You should join a civic organization.

4. You should provide valuable assistance to local community groups, non-profit (one or two will suffice nicely).

5. You should have regular career jobs bids that are not based Referral

6. You should have a method of direct mail very week.

7. You should have business cards, stationary, workspace labels.

8. You should advertise in the yellow pages or newspaper.

9. Customer Reference Binder (referenced above).

10. You should have brochures

Seventh important factor :. Stay current with technology and renewal of production / Tools

You need to upgrade equipment and tools to stay current with technology changes. This will not only improve efficiency, but also the quality of each job. You will also need to replace old equipment and devices in order to get each job done efficiently and on time. You’ll know when it’s time for new equipment and tools when old equipment and tools begin to break down at a rate that causes repeated delays. When the equipment / tools breakdown it can cause excess runs and lead late completions. No matter how good the quality of your work, missing completion dates will hurt your reputation

Eighth important factor :. Hire Weakness

No matter how much experience you have and how skilled you may be that there are certain things one does well and some we do badly. More often than not, what we do well are the things that we enjoy doing and what we do poorly are things we hate to do. A skilled business owner will hire people who do not have strength in areas of the business owner needs weakness. For example, one of my clients almost went out of business because he did not like having a call to gather requirements. Advise me about him? Hiring someone who is an expert in museums. He took me up on my advice and finally, his collections expert, became his partner. His business is thriving now. Employing the weaknesses and watch your business boom

Ninth important factor :. Document Mistakes and failures

This should be incorporated in the job search process / task Binder. You must learn from your mistakes. Mistakes should not be considered anything other than experience learned. Document those bad experiences and incorporate them into the work process and task list binder so that never repeat them

Tenth important factor :. Change Orders

Most agreements include language about change orders. Change orders are caused by many factors, which are beyond the scope of this article, but let me be clear in saying that you have to cost out all changes in sequence as if you were to cost the job. You will then process the change order (list each task and assign the date of completion for each project) and attach task checklist for each new project as a result of the change order. Finally, you must get the user to understand and sign off on the order or you will not collect the full price for the job. Many construction contractors unfortunately do a poor job in addressing change orders. They are reluctant to shed light on the customer and gloss over it in an effort to avoid confrontation. The reason? Reality change orders are not addressed up front when you are offered the job. Customers only see the price you gave them and it’s in the contract. You must deal with the reality of changing the order in place at the beginning of the bidding process and before the contract is signed. If the client understands from the beginning of change orders do not occur often and change it will increase the price of work, you will be less shy about confronting customers when it occurs.


Construction Industry in Albania and tax authorities


General overview of the construction industry in Albania

Construction is one of the most dynamic areas of the Albanian economy, with real growth of 14% for the recent period of 2008. The project is concentrated in major urban centers. State involvement in the construction industry is mainly focused on infrastructure and engineering projects. State funding for engineering structures generated 85% of total state-funded construction.

private sector construction is mainly focused on apartments and buildings for families, which account for 82% of the total financing private construction. The more people in the economy, the greater the demand for housing. it may require housing services, typically one home in each house. The size and demographic composition of households varies and not just external.

Construction Industry – Accounting and tax legislation

accounts between the owner / builder and subcontractors must be standardized GDT accounts and need to be up on a monthly basis. The accounts of all other suppliers’ obtained as and when stocks are taken, such as cement and steel rods are delivered. Other accounts, such as sales and purchase ledgers will be present along with stock inventory. The files will follow the normal pattern of accounting, however, accounts can be associated with one particular building. If a building contractor involved in more than one building and it is necessary for the accounts to reflect the cost for each site separately so as to be able to determine the final cost of employees. It is likely to be to build up an account, which all costs relating to this particular construction diagnosed

Taxation of construction supplies and repair work includes :.

1. VAT

2. Profit and Personal Income Tax

3. Withholding

4. Dividend taxation

5. tax base and;

6. Job taxes

One of the changes in the Albanian Value Added Tax Act, includes the supply of buildings, but in the process of construction, is exempt from the supply and also the rental of buildings is exempt supply, except in cases a) lease for a period of not more than two months; b) accommodation in hotels or resort buildings.

Since 2005 various interpretations were given GTD to clarify confusion about the land and buildings. To understand the impact of VAT and buildings, some basic definitions to be clarified.

Land and building

He wanted to have a building constructed is the “construct” such building. Leasing of land or sites is excluded supply, except for the cases when land is used for parking of vehicles transport and other vehicles. Free transport and other portable vehicle VAT taxable. Services supply of construction, so the process of construction and maintenance of buildings, are taxable supplies. The rental of buildings, unless they are public property, the central authority is taxable. Rental of public buildings by state or local agencies should be considered exempt supply for VAT. The definition of “ground”, under this Act, includes unfinished area, unattended, undeveloped, containing no erections, but simple divisive walls or fences that determine the boundaries of these areas. Building includes a permanent structure on the ground, part of that structure (such as a room or apartment), which includes the ground she stands as well as the environment in the sales, but does not roulots or trailers.

Specialties VAT treatment

On the basis of VAT Albanian law on the minimum taxable buildings for dwelling purposes in process of construction based minimum fiscal prices and construction surface.

Minimum orient ting prices for fiscal purposes in the process of construction of buildings for dwelling purposes are defined by a decision of the Council of Ministers after consultation with the Builders Association of Albania.

Every month the constructor is obliged to introduce the ‘work in progress’ report needs to be checked by the auditor. Technical construction engineer belong GTD estimates the amount of work that has taken place in the month and accountant combines the program with the stock movement of goods. In addition, taking into account all other expenditure items, ie the cost of land, wages and social insurance payments, electricity, etc. When the engineer has completed his work as an accountant monitoring exercise stock to ensure figures reconcile with the amount of work is considered to have been completed

For overall food cost of work a month levy on between 6 -. 10% is added and the VAT is paid in total. VAT on purchases is allowed to be deducted in the normal way.

At the end of all construction reconciliation takes place between the VAT paid monthly and VAT due on final sale. The difference is said to be minimal!

The seller does not have to charge VAT on the possible sale of apartments, considering it to be an apartment block.

If the work is paid in advance, the taxable person to get an advanced payment is required to issue an invoice and record this account in the list of sales belong to the taxable period for advanced payment was made.

profit tax and personal income tax

In the construction and repair projects covering a calendar year, the final decision on the profits and losses shall each year, and where the project ends. Income calculated in the temporary approval is made are taxed under the legislation of the same year. Profit tax rate is 10%. Companies must file tax returns profits to March 31 next year and pay tax in place until the end of the month in which the application is submitted.

real estate, land and buildings should be taxed at 10% of realized capital gains. Such a requirement does not apply in cases where there is an exchange of right of ownership of the land with the right of ownership of the building constructed on this land.

Withholding (taxation task-in -progress)

According to the Income Tax Act, both work progress and advancement of the invoice amounts paid to those performing the work, ie contractors or subcontractors, are subject to withholding tax at a rate of 10%.

Dividend Taxation

In construction, the final decision of profits and losses shall be made each year; Profits from the project are distributed later.

According to current regulations, in Albania, the dividend withholding tax rate is 10% if the dividend is distributed to foreign entities and individuals residing. Dividend payments to domestic companies are exempt from withholding tax. However, bilateral agreements taxes, which may set lower tax rates, should also be considered.

Tax treatment of construction supplies and repair work performed outside Albania

Earnings from construction and repair and technical services performed outside Albania, which are added to the income generated in Albania, are exempt from income tax if such profits are transported to Albania or not.

On the other hand, should these kinds of profits distributed to shareholders, they are taxed as dividends.

special tax audits if amalgamation, merger or splitting of construction companies

Integration involves more than all the fixed assets and liabilities of the merging UCITS business with a company that takes over. The rights and obligations of the merging fund company go to the company that takes over. The decision to review the integration code of the Company are issued in the name and identification number of the company that takes over. Authorized to represent the merged entity has already been transferred through a merger with a company that takes over. The decision to review the company that has been routed through integration includes only time the moment combined. If the review must be achieved in the time after the merger, it is necessary to request a second review of the order for the company which has taken over the former company. If the merger of the review is ongoing, the parties automatically change, in other words, all communication is done by a company that is taking over.

merged company is subject to tax until the moment merge is executed. Companies that receives is believed to have been working on the operations of the merged company from the beginning of the last fiscal year of the merged company; If the review focuses on the review of the operation time before or after the merger fund today, it is necessary to prepare review notes, one for each company. The merger, one or more companies can transfer their heritage to the existing company or a new company established by them, or provisionally been “cooperative”. With the split, the company can also transfer his inheritance to some existing companies or some new business.

Such opportunities are open to companies in the process of liquidation, provided that the distribution of its assets among the partners has not been the subject of implementation. Partners companies transfer their inheritance within the framework of the above actions, benefit shares or initial capital stock of good company or companies. Sometimes they can benefit compensation in cash, the value of which can not exceed 10% of the nominal value of the capital shares or stock.

If the operation involves the creation of new companies, each of them shall be established according to the rules governing the form of the company to be formed. Merger or change causes dissolution without liquidation of the mineralized companies and their legacy is completely transferred to the benefit of companies, in the condition that it is at the moment the operation proceeded.

However, no action is taken to exchange initial capital shares or stock of the benefits of the company / companies with capital stock or the stock of the merged or split company / companies if these items are owned by

– The good organization or person acting on its behalf or for the benefit of this company.

– merged or split company or an entity on its behalf or for the benefit of this company

merger or change goes into effect :.

– When one or some new companies are created, on the day when the last newly created company is registered in the commercial register.

– In other cases, the date of the last session, approved the operation, except for cases when the contract expected that the operation will enter into force on the second day, which should be no later than the final day of running fiscal interests of the company / business and not until the final day of closed financial year of the company / companies are moving their legacy.

partner companies can agree to re-split the company, in order to free it. It often happens that there is a real danger. We can talk about the real risk when members of a company take over part of the company’s operations and run them as separate companies.

What next? … Influence compliance behavior with tax experts …

freedom to deal with taxpayers through their agents substantially reduce the cost of tax administration. Think about what life was like for the tax authorities if there were no tax experts. Some who work for tax administration could say that life would be much easier without them. Yes, it might not be so great tax planning, or challenges to tax, and taxpayers might be willing to agree to review the tax authority is. This could make life easier for tax officials. But given the complexity of the tax system for them as it is not part of the tax administration, despite all efforts at simplification, think about what defects might be?

Instead of funneling corporate communication and business with tax experts, it was necessary to communicate directly with an additional two-three thousand subcontractors and supply companies and over one hundred VIP building taxpayers. This would have major cost implications for tax administration, as more workers would have to serve the substantial additional revenues contacts and inquiries that would ensue.

It would also be infinitely more difficult for tax authorities to ensure that all taxpayers understand their obligations and this would adversely affect voluntary compliance.

For these reasons, tax structures recently are trying to make it as easy as possible for tax professionals to meet in accordance with its customers and we offer a variety of support services and measures to support and achieve compliance customer.


OSHA 10 Hour Training – The Difference Between Construction and General Industry – What is the best



OSHA – Occupational Safety and Health Administration United States -. Has created two different versions of the OSHA 10 Hour Card program to reach the most dangerous situations workers in the United States face

Therefore, OSHA has two OSHA training classes for 10 hours card program: 1) A specific OSHA 10 Hour Construction Course and 2) A General Industry course program for all other industries. You can get 10-hour card online through OSHA approved provider.

The OSHA Construction Program

This is by far the most popular version of the OSHA 10 hour card programs. To be approved by OSHA that OSHA training program will take the following materials:

· Introduction to OSHA OSH Act including

· General Health and Safety Provisions

· Hazard Communication

· Hazardous

· Rigging and Crane

· Electric security

· Struck- By and Caught in between

· Fall Protection

· PPE – personal protective equipment

· Power tools and hand

· Scaffolding

· Ladders & Stairway safety

The General Industry Program

This 10 hour card program covers all industries other than construction. This requires that the material be comprehensive in nature and touch on the top few most important areas for many industries

be approved by OSHA General Industry program needs to achieve :.

· Introduction: OSHA & the OSH Act

· Walking and working surfaces

· Action Plan for Emergencies

· Hazardous

· PPE – personal protective equipment

· Machine Guarding Safety

· Electric security

· Hazard Communication

· Industrial Hygiene & hazardous substances

· Safety and Health Programs

jointly by two OSHA 10 hour Card Programs

You will see by the list of materials above, there is some overlap in the syllabus for the two different versions of OSHA Programs. These areas are, Introduction to OSHA, PPE, Hazard Communication and hazardous substances. However, even in these areas, a good course will use a different example, language and images covering materials to appeal to students / employees. Remember General Industry course it needs to reach a much wider industries and issues: a. Good course will use the material to appeal to a broad group of employees

What course should you take?

In the vast majority of cases, have the right to choose is obvious. If an employee in the construction industry, they take OSHA 10 Hour Card program for the construction, if not, they need General Industry version. The most common cause for confusion is the manufacturing industry. Production is covered by general industry card issuance program. Always looking for the words “OSHA good” in connection with either version of the course. This means that OSHA has reviewed the material and has approved it for online distribution.

OSHA 10 Hour Card Summary

OSHA has created two different programs to get workers face in the American workplace. The OSHA 10 Hour Card Program construction focuses on security issues involved in the construction. The OSHA 10 Hour Card program for General Industry covers all other sectors except construction. If necessary, with General contractors, insurance agency or state agency to take the right course, and always looking for OSHA Approved guide for online courses.


Safety Engineer For Managing Workplace Safety in construction


High rise buildings not just sprung up – they are built. The construction of a tall building takes a lot of management and organization to become a complete and safe from workplace casualties. Managing workplace safety is not easy to make the most of the city managers are strict with OSHA policy that are necessary for construction companies to comply. Aside from employment and building permits, construction companies priority is the safety of their employees.

If you happen to pass by the ongoing construction site, you will find a billboard posting information about the project, progress and security or index number of accidents that have occurred so far. These are just some of the strict compliance most city managers need all construction companies to send.

The workplace controls usually Safety Engineer (SE) in the implementation of OSHA (Occupational Safety and Hazard Administration) for a project. The SE has received special training and other courses in first aid and emergency to get in position. He is responsible for the coordination requires training, exercises, equipment and devices to ensure safety during working hours. He makes a report every day to help his own records of security-related major concern at all about the possibility of falling.

he draws out different strategies and policies that are useful in the security project. He designs Fall Protection Systems and designated levels responsible for the major parties. This is to help him control the number of workers in the field with groups or departments and one representative each to check on the level of security every day for him as he goes by. He tries to resolve safety issues by reporting them to management.

he recommends methods Fall Arrest Systems as lifelines or nets around the edges levels. Construction Fall Protection devices as quality helmets, including belts for employees or more railings. He could even conjure plans for the installation of Fall Protection netting agreement around the perimeter of the building, called Fall Protection safety. These networks are designed to achieve the collapse of the staff or debris to prevent harm from reaching the sidewalk or the ground below. He can also train some of the key men in his dealings with accidents and unseen catastrophes.

The Safety Engineers bears a lot of responsibility. Leave or his job depends on the security level of the construction. It is not surprising to hear that some Safety Engineer was fired after one person died of vision. He has to deal with different people every time

In Aircraft Fall Protection, they use completely different things, but they share a common concern -. The safety of others. Different tools and equipment can do this job more difficult as it is more accurate because scripts plane.

Construction Industry should keep a good record of or otherwise have to wait a little longer to get their next certificate or license. With the help of existing technologies is easier for us to manage workplace safety in construction.


Lean Construction? – If not now, when


The Lean Construction Journal in the 2009 white paper pegs percentage of non-value added activities or waste in a typical construction 55% to 65%. White papers Creating Value: A Sufficient way to eliminate waste in Lean Design and Lean Production goes on to say, [“skapaverðmætiogaðeinsgildierbestaleiðintilaðdragaúrsóuníhönnunogsmíði”19459005]

Needless to say, the construction industry is badly broken and needs to be decide. How does the industry rise up and meet the challenges of customer demand for higher quality, improved profitability, and the lack of skilled workers? The first step is to cast aside not invented here syndrome and embrace the time-tested manufacturing solution -The Toyota Production System-often called Lean.

Why should construction managers even believe Lean as a way to improve their business? Here are some eye opening facts about the US construction industry

  • 60% to 85% of construction time is often waiting or fixing failures
  • The average construction worker operates at 40% efficiency
  • Critical shortage in qualified and skilled workers
  • ROE construction pales in comparison to all other US industries
  • Customers are frustrated with the poor, conflict, excessive change orders and scheduling delays

These are some of the same or similar issues Japanese companies such as Toyota faced in 1950. Lean construction can help remediate dire situations described above. While Lean is no silver bullet, lean construction offers significant improvements to the problems facing the construction industry. If construction companies want to thrive in the 21st century it should go towards Lean Thinking.

Why so much garbage?

Why so much garbage? Construction is so fragmented. Many times subcontractor work disregarding how they do affect the work of other subcontractors. We call this “throw over the wall” mentality. One functional departments (in this case a subcontractor) completes its part of the project and throws it over the wall to the next division (subcontractor) who throws it back over the wall because it is not right. This mentality sub-optimizes your entire project to create a quality and schedule problems.

Lean thinking is a new way to manage the building. Many people object because they believe lean manufacturing technology and has no application in the “unique” as the construction industry. Lean Improvement objective is to maximize value and eliminate waste using technologies such as one-piece flow, Just-in-time delivery and inventory reduction.

There is a small but growing movement to apply lean principles to be implemented. Using lean principles effect really means to apply them to the project. This transformation involves mapping your building process, determining the optimal work flow and establish a pull system. How do you create a pull system? As a developer you can start by looking at what the finished project should be, and then work backwards, identifying each previous step. Downstream processes to determine what the upstream process will be and when they should take place. Take this picture of the project will help you manage your work flow. You should also look at creating value stream or process map of work processes as well as support the project process. Process as work organization, food, payroll, accounts payable, purchasing, tool and material handling are good candidates for mapping.

Need for Change

Construction is broken five facts below show why the industry needs to change

  1. If takes six months to build a house, then 85 percent of the time is spent in two activities: waiting for the next trade show, and fixing mistakes
  2. Clemson Professor Roger Liska analysis of the productivity of the construction industry and found that the average construction worker operates at only 40 percent efficiency.
  3. Critical lack of qualified, skilled workers are expected to only get worse.
  4. Despite the construction boom of 2006, Business Week’s 2007 Investment Outlook Report present the return on equity (ROE) for all US industry was 17.9 percent, while return on equity for the construction industry was only 9.7 percent.
  5. Industry customers are frustrated with the poor, conflict, excessive change orders in volume and dollar value, timing delays and litigation.

Adding Value

Lean construction focuses on identifying and delivering products or services that the customer / owner attaches great value. Customers often emphasis on

  • no or limited change orders
  • High labeling meets the requirements / information
  • On-time delivery of the project

To learn what specific value client, the contractor must effectively communicate, then work with the client to achieve these desired results. While it may be easier to take this idea in a negotiated level, it also works in a very competitive offer on the market.

Although there are fewer options offer market than in a negotiated environment, there are still numerous ways contractors can add value to the construction process for owners to cost contractors little or nothing. Simply by eliminating conflicts and achieve better communication and collaboration, developers can dramatically increase the value for the owner.


When contractors focus on providing maximum value to customers, they usually find that the margin increased. This is not surprising, since in almost all industrial cheapest products usually produce the smallest margin. Therefore, if developers compete on price, the contractor is forced into a low margin industry sectors. Industry data supports the belief that a highly competitive bid to mention profitable. Second, where the slope of the construction is to reduce waste, this means lower costs. The developer is under less pressure to lower its margins. Toyota was able to almost immediately double its productivity. When you consider that the average construction worker is working at only 40 percent efficiency, the construction industry should expect progress. Before blaming the employee should be noted that research Roger Liska revealed that the majority of lost efficiency was due to poor management to 20 percent results from waiting materials or supplies, 20 percent results from inefficient business processes and 15 percent results from the work rules or congested work areas.

Lack of skilled workers

Another challenge the industry faces is the lack of skilled workers. If the industry wants to attract employees, it will change the perception that construction is undesirable. Again, lean construction is an important tool in the struggle. When there is a shortage of workers, there is a tendency to reduce the job to find more workers. To make this work, tend demands to revise down so lower skilled workers can be considered. While this works in the short term, it creates a boring jobs to highly skilled workers do not want. Further, this approach tends to reduce productivity and increase pressure on wages because wages reflect productivity. Throwing money at a problem is never a solution, while wages are a factor in the equation. The emphasis on increased productivity so highly skilled workers can be attracted and risen. This is not an illusion due to lean manufacturers have already proven that this concept works.

Although there are no panaceas, Lean offers significant improvements to the problems faced by the construction industry. Those contractors who want to thrive in the 21st century should go towards lean thinking to improve their processes.

Power of Lean in Construction

Lean construction is a systematic application of lean thinking to the design and construction of buildings that make what customers and users will-provide value. Over the past 50 years, lean thinking has revolutionized some parts of production and is now facilitate significant improvements in the way services institutions like hospitals, banks, etc. are meeting customer requirements.

Adopting Lean Thinking requires sustained work over several years. There are no instant solutions. For most people, the slope requires changes in the way they think and behaviors that support their actions. There are many things that lean organizations that can be copied – in collaboration, supply chain management, value stream analysis, flow, etc. – but they are only to tilt when they are doing a deficit intent . It does Lean Thinking about how the organization works.

Not all construction companies take waste is a prerequisite for doing business. They reduce or eliminate it using Lean tools and techniques. Some examples of companies with Lean principles and tools to overcome the poor quality, poor delivery and less than stellar profits are: Boldt Construction, Linbeck Construction, Mortenson, Sutter Health, Veridiana homes, and Walsh Group


Lean process improvement is not a new concept, but it is relatively new to construction. There are many skeptics who believe Lean is a manufacturing technology and is not suited to the construction industry. Many aspects of the Toyota Production System and other lean tools can and should the construction process.

Courageous, out-of-the-box construction organizations like Boldt, Turner Construction, and Messer construction along with others, are leading the way by showing that lean process improvement can reduce waste in construction with results mirroring other industries.

Lean principles hold promise for reducing or preventing harmful activities, costs and inefficiencies in the construction industry, to create a system that provides value to customers.


Construction Site Accident Statistics: What You Should Know to Stay Safe


If you work in an industrial work place, there are dangers everywhere. From heavy duty tools for equipment that might cause serious laceration with just one misstep, accident or mistake, it is important to know about the latest casualty reports construction. Knowing what the most common type of injury can help employees stay aware and alert to the dangers. If you or a loved one works in an industrial work place, you will not miss this guide construction accident statistics.

Construction Industry Accident Statistics

Construction site accident statistics report that more than 10% of employees have at least one accident every year – more than 150,000 people each year. Younger workers (those under 35) have a greater chance of being hurt, perhaps because they do not pay close enough attention to what is happening around them. Back injuries are the most common and it is not uncommon for a worker to lose more than 30 days of work because of an injury.

In addition, at least 1,000 people are killed on the spot every year, and 30% of these deaths occur because workers have fallen scaffolding, roofs and other elevated surfaces.

Types of Injuries

Accidents can be large or small, from small scrape that only requires a bandage to injury leaves the employee with a head injury. Construction accident statistics report that many of the accidents come with cranes, generators, power tools, heavy equipment such as bulldozers and forklifts, and also due to fires and explosions, items falling from the rise to the surface and from slips, trips and falls.

prevents Common Injuries

The most common injuries in the work location are actually almost all entirely preventable. For example, someone who is working on a table saw without protective goggles is at risk of eye damage from a small piece of wood could fly up and be placed in the eye. A tool falling from a person who is working on a ladder could harm the person on the ground floor without a hard hat.

slips, trips and falls can happen due to untidy work place, employees are wearing inappropriate footwear and even workers who just are not paying proper attention. Industrial placement is not like regular work place it is important that the staff who work there understand how important it is to pay attention to their surroundings to keep themselves and their colleagues safe.

Knowing the latest construction accident statistics is the first step in preventing these injuries in the first place. This industry has one of the highest workplace injury cases, and because of this, it is extremely important that employees pay strict attention to what is going on around them while they are working. One misstep can literally mean the difference between life and death. If you are in charge of safety at work on the site, consider putting together a refresher safety courses to help keep your employees safe from day to day.


Commercial trucks – the backbone of the construction industry



Construction companies prepare pages and assemble houses, buildings and roads; they build communities and improve towns. Without the work of construction companies, the communities in which we live and work would not exist. Now imagine running a workplace without a commercial dump truck; This picture just does not compute!


Commercial Trucks store nuclear construction. They include equipment choices when it comes to transfer any available building materials such as gravel, sand or fill dirt for the construction as well as handle all waste such as excavated dirt. It can transport any bulk material in large quantities quickly and safely to and from any place. They are essential to the daily operations of construction companies.

Usually, a truck passes a quarry or any other supplier to be loaded with needless stuff. The dump space is open so sometimes shelters may be placed over the cargo hold debris from falling out while the material is transported. During construction, truck load releases its specific location by opening the gate and lift dump bed with hydraulic lift, depositing material usually in a heap on the floor.


Commercial trucks are made in the same manner to other cars pregnant. Chassis is made from reinforced steel for durability. The plant is a large diesel engine, topped with reinforced cockpit host driver. What distinguishes this truck and makes it the number one choice for construction companies is hydraulically large capacity dump space. Since the dump bed is hydraulically, making it fast and easy release without further employee needs other than the driver and the spotter.


trucks come in many different sizes and configurations for various applications. These trucks can be classified according to their abilities or weight of cargo they can carry and the number of axles. At the truck in production today is 2 x 4 truck with 10 tons powered by a single axis, the longest truck is known as “Centipede” and has as many as 7 axes with a capacity of more than 50 tons.

Dump Types

Small size trucks are designed to meet the required capacity limit for driving, as well as to maximize control of their ability. In many countries, 10 wheeler truck with a maximum load of 30 tons is adequate capacity for driving on highways. A commercial truck of this size is perfect for transferring loads onto construction sites within the city while keeping the regulated capacity.

large capacity trucks come in various forms, including transport, truck and pup, and super trucks. They also come in different styles including the dumping side dump more corporate end dump.

Another type dump truck is a semi-trailer truck, which is designed to maximize payload capabilities through a truck and trailer combination. It also offers the ability to greater mobility in reverse.

Articulated trucks have a hinge between the cab and the dump bed box, which reduces the load on the truck frame. Steering is by rack and pinion steering that allows for easy handling on rough terrain.

Some of the large capacity trucks are not even designed to run on normal roads. Mammoth off-road trucks can be larger than a house and used for very large earth-moving work such as highway construction.

The commercial truck is an important piece of equipment for any construction company. The buildings we work in and the house in which we live are just a few of the buildings that have been constructed with the help of these solid commercial trucks.


The role of scaffolding in construction


Scaffolding is actually temporary construction or development you can tell, which is produced in order to assist the materials used in the construction of residential or industrial buildings. The main reason scaffolding items is to give full safe workplace always safe entrance suitable for the work to be completed. It allows for the recommended work area that can easily reach many high meters. In fact, the scaffolding is completely bound and even if you use a ladder, but it can not help you to achieve the same level of stability. As such, scaffolding is the only solution that can help you reach the heights you will get a huge platform for tools for the construction and functional workplace.

Although the use of scaffolding elements in building construction, only specialized professionals and experts are allowed to raise the towers. In fact, there are some courses available on the formation of scaffolding. Nowadays, many scaffolding and shuttering points of service available in all over India. Some of the key enhancements scaffolding and tools that are commonly used in construction are as Cuplock System, prop, Jack Base, U Head Jack, Ledger, shuttering Plate, Bottom Cup, bottom plate, scaffolding Chali and much more. The main principle of the platforms are transforms ledgers and standards. Indeed, standards are vertical tubes that help in moving the entire structure mass to the ground. On the other side, the ledgers horizontal tubes that go between standards and transoms take a break over the ledgers perpendicular

Some scaffolding tools are well described below :.

Fitting and tube

Indeed, there are two types of tubes used in the scaffold and they are steel and aluminum. Tubes are mostly available in different sizes length and diameter 48.3mm with 1.5NPS pipe. The only difference between these tubes to aluminum head with my weight by 1.7kg / m which contrasts to 4.4kg / m. Also, they also have great elasticity and less conflict to power. In fact, couplers basically used for scaffolding fittings that join pipes.


There are many jacks on turbo scaffold used in building construction, and you can put them scaffold jacks always at least such numbers each level. It is really a great strand rod along the wing nut and welded steel plate called base plate right at the bottom. These are very mandatory for safe, secure and level working level.


Coupler is a coupling that actually make the tube all. These are available in various forms like some pipes are connected end-to-end and some keep tubes perpendicular to each other.


There is one important accessory that is used these days. It is basically concentrated on the right side of the scaffold formation is widely used to pull content from one level to another one. They are used for scaffolding and are very prepared with motor and pulley wheels. It is actually a cable and pull back when it is really needed.

In short, scaffolding accessories very useful structures that make it more easy and convenient while.


Why is risk assessment important for the construction industry?


The construction industry is an area that is full of potential potential problems and the risk assessment required for any project. The construction industry is one that has the potential for a wide range of health and safety to rear their heads, and the food is one way to ensure that the chance of any incidents as low as possible, to protect everyone involved with the project.

risk assessment not only involves identifying potential risk of construction, but also weigh these against several other factors, including contractual obligations, financial constraints and requirements of the proposed projects. It is important to consider the health and safety risks construction associated with these other factors and not the individual problems that are not affected by other aspects of the project, doing this may mean leaving yourself open to other dangers you may not have initially considered or prepared for.

There are numerous competent health and safety advice can be employed to carry out a professional assessment and have experience in a wide range of settings, including in the construction industry. Having an expert assessment of the project is important, especially where construction is often considered high risk areas, and that assessment can highlight issues that you can not even considered could be at risk or potential problems, allowing you to prepare for potential problems and reduce the likelihood of them coming.

Often at the same time test, many companies further on this by applying the same companies that perform air testing environment after project to ensure that it complies with and meets the UK building regulations. There are expert risk assessment and air testing companies across the country who have experience in many areas, including in the construction industry. These often provide services on site, for example, specializing in risk assessment in the Dorset area and air testing Bournemouth.

When the company any project, whether it is done or that it is important to consult with experts and a thorough and complete risk assessment carried out before. And by contacting experts can ensure that all potential problems have been assessed and measures for health and safety have been put in place to reduce the risk of everyone involved.