Want to Be More Productive? - MONTHLY EDUCATIONAL JOURNAL OF THE FOUNDATION OF THE AMERICAN SUBCONTRACTORS ASSOCIATION - The Contractor's Compass
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MONTHLY EDUCATIONAL JOURNAL OF THE FOUNDATION OF THE AMERICAN SUBCONTRACTORS ASSOCIATION
FEBRUARY 2021
Want to Be More
Productive?
1004 Duke Street, Alexandria, VA 22314 | (703) 684-3450 | www.asaonline.com | communications@asa-hq.com
1 FORM. MULTIPLE QUALIFICATIONS.
Join us and take part in bringing standardized qualifications
to the industry!
COMPASS aims to streamline the data collection process and help Subcontractors satisfy
multiple qualification requests with our standardized form (the 1Form); eliminating the need
to complete multiple unique forms. We are engaging General Contractors and other industry
participants to adopt standardization, and would benefit from your support.
If you agree with standardization in the qualification process, please show your support by
filling out this short survey
https://forms.gle/FWPJrfaXZMKcGfer7
1-800-689-6819
info@compass-app.com
http://compass.bespokemetrics.com
FASA'S FEBRUARY 2021
EDITORIAL PURPOSE
The Contractor’s Compass is the monthly educational
journal of the Foundation of the American Subcontractors
F E AT U R E S
Association, Inc. (FASA) and part of FASA’s Contractors’
Knowledge Network. The journal is designed to equip
construction subcontractors with the ideas, tools and Lagging or Leaping? Technology in Construction..........................................11
tactics they need to thrive.
by Jenny Harris and Mary Klett, ASA Communication Team members
The views expressed by contributors to The Contractor’s
Compass do not necessarily represent the opinions of FASA
or the American Subcontractors Association, Inc. (ASA). When Good Projects Go Bad....................................................................................12
by Gregg Schoppman, FMI
MISSION Why Contractors Need to Make an IT Plan and Stick to It........................14
FASA was established in 1987 as a 501(c)(3) tax-exempt by Steve Antill, Foundation Software
entity to support research, education and public
awareness. Through its Contractors’ Knowledge Network,
FASA is committed to forging and exploring the critical Three Behaviors Top Teams Avoid to Excel in Struggle...............................17
issues shaping subcontractors and specialty trade by Chad Pearson, Plexxis Software
contractors in the construction industry. FASA provides
subcontractors and specialty trade contractors with the
tools, techniques, practices, attitude and confidence they Six Ways to Improve Productivity in Construction
need to thrive and excel in the construction industry. Using Technology...........................................................................................................20
FASA BOARD OF DIRECTORS by Patrick Hogan, Handle.com
Richard Wanner, President
Courtney Little
Richard Bright Want to be More Productive? Safety and Productivity
Anthony Brooks Go Hand in Hand............................................................................................................22
Brian Cooper
Jack Austhof by Jack Rubinger, freelance construction writer
SUBSCRIPTIONS
The Contractor’s Compass is a free monthly publication
How a Connected Platform Translates to Improved Performance........24
for ASA members and nonmembers. For questions about by Michelle Turner, Procore Technologies
subscribing, please contact communications@asa-hq.
com. Productivity in Construction – The Elephant in the
ADVERTISING Room Needs to be Addressed.................................................................................26
Interested in advertising? Contact Richard Bright by Eric Crawford, Fonn Construction
at (703) 684-3450 or rbright@ASA-hq.com
or advertising@ASA-hq.com.
Using Contract Skilled Labor Can Save You Time,
EDITORIAL SUBMISSIONS
Contributing authors are encouraged to submit a brief Increase Profit and Productivity..............................................................................28
abstract of their article idea before providing a full-length by Ed Rojeck, Tradesmen International
feature article. Feature articles should be no longer than
1,500 words and comply with The Associated Press style
guidelines. Article submissions become the property of ASA Five Tips to Improve Your Construction Productivity...................................30
and FASA. The editor reserves the right to edit all accepted by Jessica Meno, writer for Raken
editorial submissions for length, style, clarity, spelling
and punctuation. Send abstracts and submissions for The
Contractor’s Compass to communications@ASA-hq.com.
ABOUT ASA
D E PA R T M E N T S
ASA is a nonprofit trade association of union and non-union
subcontractors and suppliers. Through a nationwide ASA PRESIDENT'S LETTER.......................................................................................4
network of local and state ASA associations, members
receive information and education on relevant business
issues and work together to protect their rights as an CONTRACTOR COMMUNITY...................................................................................6
integral part of the construction team. For more information
about becoming an ASA member, contact ASA at 1004 ALWAYS SOMETHING AWESOME.......................................................................10
Duke St., Alexandria, VA 22314-3588, (703) 684-3450,
membership@ASA-hq.com, or visit the ASA Web site, www.
asaonline.com.
LAYOUT
QUICK REFERENCE
Angela M Roe
angelamroe@gmail.com Upcoming Webinars..................................................................................................... 32
© 2021 Foundation of the American
Subcontractors Association, Inc. Coming Up........................................................................................................................ 32
PRESIDENT 'S LET TER
Dear ASA Members:
I hope that many of you are beginning to feel as I do that we finally
have two feet planted firmly in 2021. With the turn of every year
there is always excitement for what is on the horizon, and now I am
pleased to see that all of our enthusiasm wasn’t unwarranted. There
are incredible things happening here at ASA, and I am thrilled to
share just a few of them with you. All of us at ASA recognize that
SUBExcel was cancelled this year, which is why we are going out
of our way to offer additional webinars, both live and recorded, as
well as podcasts to meet all of your educational needs. Make sure
that you are unlocking all the value of your membership by reading
ASAToday, checking the members-only area of the website called
the "Info Hub," and subscribing to our social media channels. Making
sure that you are getting the most out of your ASA membership
is incredibly important to everyone at ASA National, and I highly
encourage you to take advantage of everything this organization has
to offer.
There has also been exciting news on the advocacy front. On
February 5, 2021, I am very pleased to report that ASA, along with
13 construction industry trade and professional organizations,
sent comments to the Federal Acquisition Regulation (FAR)
Council regarding their proposed rule to amend the FAR to
provide guidance on the use of reverse auctions. Collectively, our
comments represented tens of thousands of firms and individuals
engaged in architecture, engineering, construction program and
project management, surveying and mapping, prime contracting,
subcontracting, specialty trade contracting, supplying, and surety
bond producing. As such, these organizations have a unique
knowledge concerning reverse auctions and federal procurement.
It was our recommendation that FAR Subpart 17.803 be amended
to comply with the recently enacted law (Public Law No: 116-260),
which ASA drafted and advocated for during the 116th Congress,
directing the FAR Council to prohibit the use of reverse auctions in
the procurement of construction services.
I want to thank all of you for your continued dedication to the
subcontracting community, and I look forward to the day when we
will all be able to gather together again.
God Bless,
Brian Cooper
ASA President 2020-2021
4 F E B R U A R Y 2 0 2 1 T H E C O N T R A C T O R ’ S C O M P A S S
PER THE LETTER: Reverse Auctions are an Inappropriate Method of Procurement for Design and Construction Services Reverse auctions are inappropriate platforms for Reverse auctions ignore the protections of sealed procurement of construction services. Due to the bid procurement laws and regulations, and years of complexities of design and construction projects, precedent that address critical factors and ensure the procurement of these services using the reverse the integrity of the process. Where price is the sole auction method fails to take into account the unique determinant, the sealed bid procurement process mix of services and systems tailored to individual ensures integrity by assuring that the successful owner needs and budgets, site conditions and bidder is the most responsive and responsible requirements, and the changing composition of the competitor with the best price. The pressure and pace project team, unlike products and commodities which of the auction environment removes any assurance are manufactured with little or no variability. The bids will be responsive and material to the owner’s reverse auction procurement method often favors needs. This encourages significant risk taking, which businesses offering the lowest price, rather than is not appropriate for construction services that those that are most qualified, which will compromise potentially impacts life and property safety. quality, overlook small businesses, or even require a Proponents in support of utilizing reverse auctions new bidding process down the road, eliminating any might view this procurement method as practicable perceived initial savings. and economically advantageous for procuring Reverse auctions do not offer federal owners a simple off-the-shelf commodities; however, design good way to evaluate non-price factors nor do they and construction services are vastly different, far guarantee any proven savings over competitive too complicated, and present a high risk of failure bidding. When price is not the sole determinant, when procuring construction contracts using this owners increasingly rely on selection criteria such as procurement method. It is for this reason that qualified past performance, qualifications and the capacity to and sophisticated construction firms do not participate meet the project’s unique needs. Reverse auctions in federal reverse auctions as the process moves too do not promote this dynamic. Instead reverse rapidly in order for bidders to accurately assess their auctions promote an approach in which parties costs, which in turn has the potential to jeopardize focus only on price. Software vendors and other their construction firm, as well as downstream parties, similar industries promoting reverse auctions have i.e., subcontractors, and suppliers. Furthermore, the not proven that reverse auctions generate savings in surety industry responsible for furnishing surety the procurement of construction or provide benefits bonds, which are mandated on federal construction of “best value” comparable to currently recognized contracts above $150,000 by the Miller Act (40 USC selection procedures. Unlike many products, for 3131, et, seq.) is opposed to reverse auctions for design which the government awards contracts to the lowest and construction services due to high-risk and the bidder, or other services, which are awarded based potential for contract default. on the “best value”, construction services have long These are just some of the many reasons reverse been recognized as having a significant impact on auctions are an inappropriate method of procurement public health, welfare and safety. Moreover, reverse for design and construction services. auctions can put small businesses at a competitive disadvantage. T H E C O N T R A C T O R ’ S C O M P A S S F E B R U A R Y 2 0 2 1 5
CONTRACTOR COMMUNIT Y
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we can't be together physically at this
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provide its subcontractor members automatically a National Purchasing
an organization, and hope you will join
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On February 25th will be the ASA solutions.
Virtual Awards Presentation. Come as well. Members can also save on
celebrate all of the ASA Award winners Our Construction Blueprint process 5G capable devices. Restrictions may
this year! Every year ASA honors starts with listening and collaboration apply.
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Presentation will be virtual, but all Total Cost of Risk.
award winners will be recognized Our exceptional relationships with ASA Calls Upon Congress for
during SUBExcel 2022. Click here to Insurance and Surety underwriters A Robust Multi-Year Highway
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and Public Transportation
On March 10th will be the ASA Reauthorization Bill
Annual Business Meeting. This event Broker and Risk Management
Consultant with local services and ASA joined 32 national associations
is open to all members, and so here’s
responsive attention. It’s what we call of the Transportation Construction
another chance to know what’s going
Power through Partnership. Coalition (TCC) calling upon
on, and how you can make our
congressional leadership for a robust,
multi-year highway and public
6 F E B R U A R Y 2 0 2 1 T H E C O N T R A C T O R ’ S C O M P A S S
transportation reauthorization bill. (OSHA) released guidance for 4. Implementing protections from
Our surface transportation system is employers titled, Protecting Workers: retaliation and setting up an
in dire need of additional investment Guidance on Mitigating and anonymous process for workers to
and the American Society of Civil Preventing the Spread of COVID- voice concerns about COVID-19-
Engineers (ASCE) identified a near 19 in the Workplace. This guidance related hazards.
$2.5 trillion funding gap for our surface contains recommendations as well as Return to Work Criteria
transportation network, of which descriptions of mandatory safety and The guidance discusses additional
$1.7 trillion is needed for our nation’s health standards. It does not create measures for limiting the spread of
highways, $181 billion for bridges, and new legal obligations for employers. COVID-19, starting with separating and
nearly $535 billion for our nation’s Instead, as stated by OSHA, “the sending home infected or potentially
transit system, over a 20-year period. recommendations are advisory in infected people so they cannot infect
Addressing this gap with additional nature, informational in content, and other workers. Employers should
investment would pay dividends by are intended to assist employers follow a symptom-based strategy for
improving safety and mobility. in providing a safe and healthful identifying, separating, and sending
Meanwhile, the COVID-19 workplace.” The Construction Industry home workers according to OSHA,
pandemic continues to take its toll on Safety Coalition (CISC) prepared the although there may be limited
transportation construction revenues following outline of OSHA’s Guidance: circumstances where a test-based
and programs, and state and local COVID-19 Prevention Programs strategy is appropriate.
transportation agencies are plagued by The guidance encourages employers Under a symptom-based strategy,
uncertainty surrounding the September to implement COVID-19 Prevention workers who think or know they had
30th expiration of federal highway Programs in the workplace. According COVID-19 and had symptoms should
and public transportation programs. to the Agency, these programs are an only return to work after:
A robust, multi-year reauthorization of effective way to mitigate the spread 1. At least 10 days have passed since
the FAST Act would provide a much- of COVID-19 at work and employees symptoms first appeared;
needed boost to economic recovery and/or their representatives should
and restore confidence that Congress be involved with the program’s 2. At least 24 hours have passed with
and the president can work together to development and implementation. The no fever without fever-reducing
achieve shared national objectives that guidance lists 16 elements—four of medication; and
will improve the lives of all Americans. which are considered key elements— 3. Other symptoms of COVID-19 are
To that end, we called for three core that should be included in a COVID- improving (loss of taste and smell
principles: 19 Prevention Program. The four key may persist for weeks or months
• at least a five-year reauthorization elements that should be included are: and need not delay the end of
to allow for long-term planning and 1. Identification of where and how isolation).
investment; workers might be exposed to Some workers may need to isolate
• significant funding increases over COVID-19 at work by conducting a longer than 10 days, as recommended
current levels to meet America’s hazard assessment. by their doctor. Please keep in
transportation needs and improve mind that while the Americans
2. Identification of a combination of
the safe and efficient movement of with Disabilities Act (ADA) permits
measures that will limit the spread
people and goods; and employers to ask for a doctor's note
of COVID-19 in the workplace.
to verify that workers are healthy and
• build on the project delivery and This includes a combination of
able to return to work, OSHA does not
regulatory approval process eliminating the hazard, engineering
encourage such a practice given the
enhancements made in the controls, workplace administrative
potential delays and demands on the
previous two surface transportation policies, personal protective
healthcare system.
laws to ensure the timely delivery of equipment (PPE), and other
measures, prioritizing controls from As for workers who have been in
projects and benefits.
most to least effective, to protect close contact with a COVID-19 positive
workers from COVID-19 hazards. individual, local health departments
typically establish the quarantine
OSHA’s Recent COVID-19 3. Instruct workers who are infected guidelines for such individuals. While
Workplace Guidance or potentially infected to stay the CDC continues to recommend that
On January 29, 2021, the U.S. home and isolate or quarantine such individuals stay home for 14 days
Department of Labor’s Occupational to prevent or reduce the risk of after their last contact and monitor
Safety and Health Administration transmission of COVID-19. their symptoms, it recently provided
T H E C O N T R A C T O R ’ S C O M P A S S F E B R U A R Y 2 0 2 1 7
the following two options to shorten an between workers and ventilation. At employers provide all workers with
individual’s quarantine below 14 days: fixed workstations where workers are face coverings at no cost to the worker.
1. Quarantine can end after 10 days not able to remain at least six feet away In addition, employers should require
after an individual’s last contact from other people, OSHA recommends any other individuals at the workplace
with COVID-19 without testing and that transparent shields or other solid (e.g., visitors, customers, non-
if no symptoms have been reported barriers (e.g., plexiglass, flexible strip employees) to wear a face covering
during daily monitoring. curtains) be installed. These barriers unless they are under the age of two
do not replace the need for social or are actively consuming food or
2. Quarantine can end after seven distancing according to the Agency, beverages on site.
days after an individual’s last and six feet of separation should still OSHA standards may require
contact with COVID-19 after be maintained between individuals employers to provide PPE to
receiving a negative test. The test when possible. supplement other controls when the
must occur at least five days after
OSHA also recommends that measures discussed above cannot be
the individual’s last exposure.
employers improve ventilation to implemented or do not protect workers
In either of these scenarios, the prevent the spread of COVID-19 in fully. In these scenarios, employers
individual must continue to monitor buildings. The guidance lists a number must determine what PPE is necessary
their symptoms until 14 days after of helpful strategies to achieve this and provide all necessary PPE to
their last exposure and self-isolate if goal, such as: workers at no cost in accordance with
symptoms reappear within that period, relevant OSHA standards.
1. Increase ventilation rates when
wear a face covering, stay at least six
possible. Sanitization, Cleaning, and Disinfecting
feet from others, wash hands, and
2. When weather conditions allow Practices
avoid crowds, amongst other steps to
prevent the spread of COVID-19. and it does not pose a safety Per OSHA’s guidance, employers
or health risk to others in the should ensure that workers, customers,
In limited circumstances, employers
building, increase fresh outdoor air and visitors have adequate supplies
may consider permitting critical
by opening windows and doors. and time to clean their hands
infrastructure workers to continue to
Fans can be used in conjunction frequently and cover their coughs
work when it is necessary to preserve
with open windows to increase and sneezes. Posters encouraging
the function of critical infrastructure
effectiveness. hand hygiene and physical distancing
workplaces.
3. Reduce or eliminate air should be posted at the entrance to a
Social Distancing Measures workplace and in other areas where
recirculation.
Maintaining at least six feet of they are likely to be seen. These
4. Improve central air filtration
distance between individuals can posters should be in a language
to the MERV-13 or the highest
be one of the best ways to protect workers can understand, including
compatible with the filter rack,
individuals from infection. As such, non-English speakers.
and seal edges of the filter to limit
OSHA recommends that employers Employers should also develop,
bypass.
implement various measures such as implement, and maintain a plan to
limiting the number of people in one perform regular cleanings to reduce
place at any given time (including Face Coverings and PPE
the risk of exposure to COVID-19 in
during toolbox talks and safety Face Coverings are simple barriers
the workplace. This should include
meetings), increasing the physical that help prevent respiratory droplets
routine cleaning and disinfecting of
space between workers and/or from reaching others. According
all frequently touched surfaces and
customers, altering work spaces to add to OSHA, face coverings should
portable jobsite toilets, prohibiting the
physical cues reminding individuals to be made of at least two layers of a
sharing of objects or tools between
physically distance from one another tightly woven breathable fabric and
workers or ensuring appropriate
(e.g., signs, tape marks, decals, etc.), should not have exhalation valves or
cleaning and disinfection of shared
offering vulnerable workers duties that vents. They should fit snugly over
tools, providing disposable disinfecting
minimize their contact with others, and the nose, mouth, and chin with no
wipes so that commonly used surfaces
prohibiting handshaking or other forms large gaps on the outside of the face.
can be wiped down before each use,
of physical contact. When worn properly, face coverings
storing and using disinfectants in a
can suppress the spread of COVID-
responsible manner, and advising
Engineering Controls 19. Wearing a face covering, however,
workers to always wear gloves or
is complementary to and not a
The guidance discusses two additional PPE appropriate for the
replacement for physical distancing.
specific types of engineering controls chemicals being used.
for employers to consider: barriers The guidance recommends that
8 F E B R U A R Y 2 0 2 1 T H E C O N T R A C T O R ’ S C O M P A S S
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A LWAY S S O M E T H I N G
This is the first in a series that we will include in The Contractor’s Compass on an
ongoing basis, highlighting the achievements of ASA members. Do you want to
share something awesome?! Send us an email at communications@asa-hq.com.
As one of the largest Mark Drury, S&D’s
mechanical contractors vice president, business
in the DC metropolitan development, gives the tour,
region, Shapiro & Duncan and explains each aspect of
has built a team of welders, the facility, including the 302-
pipefitters, plumbers, kW solar farm on their facility
instructors, and virtual roof, which produced 97
design coordinators percent of the energy used at
to create state-of-the- the facility in 2019. In 2020, it
art plumbing and HVAC was 99 percent. In addition,
assemblies and modular they sell back to the grid
system components ready any energy produced during
for just-in-time delivery and include captions, since many people non-operating times. They
installation. need to watch in silent mode. With estimate their investment will be paid
In a normal year, Shapiro & Duncan good planning, the filming took a day. off in about six years, with a 25-year life
(S&D) gives dozens of behind the Shapiro & Duncan pride themselves on span for the panels. Here’s a different
scene tours to students, customers - the preparation and thought process of video on the solar installation.
and even competitors, of its 52,000 sq.ft their prefab facility, and included that in Future plans for the plant include
prefabrication facility in Landover, MD - their video production as well. expanding the laydown space, as they
the largest open merit shop in the Mid- The video shows how their find themselves needing larger areas to
Atlantic region. But 2020 changed all of equipment maximizes the efficiency of assemble pre-fab components.
that, and while the interest in the shop each cut, reducing waste; showcasing Thanks to Shapiro & Duncan for
continued, the practical alternative was their solar farm, modular construction, sharing this video and letting everyone
to put the tour online. And so they did. productivity, equipment, quality get a glimpse of what goes on inside a
After researching other shop tour control, safety, training, storage, and well-run pre-fab facility.
videos, Stacey Holsinger, S&D’s technology. Their 2016 Fab Shop video Again - if you have news to share,
marketing manager, knew they needed details how S&D handles the creation innovations, or just want to highlight
to focus on sound quality (how do you of Spool 53 - the largest pipe in the something you think your company is
drown out welding and cutting noises HVAC system. Take a look at this video, doing well, just send us a note.
while recording?) and to detailing the “life of pipe.”
10 F E B R U A R Y 2 0 2 1 T H E C O N T R A C T O R ’ S C O M P A S SF E AT U R E
Lagging or Leaping? Technology in Construction
by Jenny Harris and Mary Klett, ASA Communication Team members
Initially, construction may have been a slow adopter of industry to the front of the tech pack. They’ve been able to
technology, but over the years we have seen a significant do just fine “the old way.” Construction industry workers have
shift. The construction industry now embraces technology not had the luxury of an incremental tech adoption, like many
and all the advantages it provides in helping contractors other industries.
manage the myriad of multifaceted, intricate and extremely ASA is experiencing a surge of tech companies joining our
complicated construction processes. The recent (and organization, bringing their software and systems to ASA
ongoing) adoption of hand-held computers for tasks such members. It’s a win-win for everyone, but it can be difficult to
as reporting, measuring, and contract-signing, has brought know what is the best product for your business. Below is a
the construction industry to the forefront of technological brief summary of the software-based technology companies
advances for productivity. that have joined the ASA fold. As fellow ASA members, we
Sometimes it’s still tough for construction workers who encourage you to give them a look and see if the answer to
are accustomed to working with pen and paper to push the your most recent issue could be right at your fingertips.
Bespoke Metrics (COMPASS) report critical, construction-related information Visit their website for a demo. Email to: connect@
Bespoke Metrics blends expertise in data control, like retainage, prevailing-wage rates, certified plexxis.com. Tel: 1-905-889-8979.
model development and user interface to provide payroll, multiple trades, job activities, percent
innovative solutions for industries looking to complete, change orders, POs and subcontracts, Procore Manage your projects, resources, and
utilize data to its fullest. Their COMPASS tool equipment usage, AIAs, union deductions and financials on one open, easy-to-use platform—
analyses risk for subcontractors and contractors fringes, etc. Executive dashboard, timecard designed for how you actually build. One million
by looking at financial statements, assets, submissions, document imaging - store and projects running on Procore. Pre-construction,
revenue, income. For subcontractors the “1Form” access. Visit their website for a live demo. Email project management, quality & safety, design
is a qualification form whereby you get approved to: info@foundationsoft.com. Tel: 1-800-246-0800. coordination (VDC, design, ops, field teams).
by 70+ general contractors across North America. Located in 125 countries. Received 2021 Best
Subcontractors satisfy multiple data requests. GCs Kahua Computer Software Customer Support Award from TrustRadius. Visit
get higher quality data. It also satisfies more than Construction program and project management their website for a demo. Tel: 1-866-477-6267.
92% of surety applications. Their new DataControl software. Manage construction program costs,
app lets subcontractors respond directly and documents and processes from inception through Raken More than 4,000 GCs and specialty
securely to questions from contractors. Visit their turnover to improve efficiency and reduce risk. contractors use Raken’s field management
website. Email to: info@compass-app.com. Tel: Founded in 2009 and first product released in solution. Designed to integrate with other
1-800-689-6819. 2014. Kahua means foundation or platform in construction management tools. Raken won
Hawaiian. Project management and collaboration more than 12 awards in G2's latest report such
Fonn Construction team collaboration software for real estate, design, engineering, as best ease of use, best estimated ROI, highest
management software. For builders, created by construction and operations.More than 5,500 rated support, and most implementable in the
builders. Create and share forms, documents, customers, 80,000 projects managed on Kahua construction software space. Visit their website for
warranties, communications. Cost is per project. software, and 1000+ apps developed. Named to a demo and 15-day free trial. Tel: 866-438-0646.
Company was founded in 2016 in Norway, and Deloitte’s Technology Fast 500 of 2020. Visit their
major construction companies in Norway, UK, website for a demo. Email to: info@kahua.com. Tel: Rhumbix Transform your field reporting into
and U.S. are clients. In January they reached 1-770-641-9994 data-driven workflows to save time and increase
a milestone of 20,000 projects using Fonn your project insights. The Rhumbix Field Data
technology. Visit website for a demo and free, Plexxis Project management, accounting, Platform enables your team to seamlessly capture
2-week trial. Email to hello@fonn.io. Tel: 1-888-418- estimating and mobile apps on a single tech stack and connect your vital field data to gain stronger
1995. that enables live feedback between bidding, field project-level visibility. Time & Materials Tracking,
& finance while eliminating the need to build and Timekeeping & Payroll tracking, Production
Foundation Software Construction maintain integrations. In-house lifetime services Tracking, Daily Construction Reports, Custom
Accounting Software - Job costing, payroll, for development, DBA, deployment, support & Workflows. Designed for the field. Visit their
and project management. With construction optimization, delivering a 98.4% rate of adoption. website for a demo. Email to: info@rhumbix.com.
accounting software, you can track financials and Features focused on subcontractor workflows. Tel: 855-748-6249.
T H E C O N T R A C T O R ’ S C O M P A S S F E B R U A R Y 2 0 2 1 11F E AT U R E
When Good Projects Go Bad
by Gregg Schoppman, FMI
Most projects don’t start off being bad. “spotting” the Polar Wolves 14 at the start
They begin with the best of intentions but of the game or handicapping their odds.
possibly lack the nurturing, caring and In the end, if the Reptiles win – which
planning to be successful. There are also was expected – but fail to achieve a two-
those projects that take a dark turn, but touchdown advantage, fans, pollsters, etc.
their trajectory provides a false sense of see it as a failure. An uncanny example of
security to management. They exhibit winning but failing at the same time.
signs of being a best in class project, Similarly, consider a contractor that has
one that will become the cover page of a project that they bring in at 20% gross
the sales brochure. However, below the margin. On the surface, this sounds like a
surface, there are signs and indications. A win. However, after you factor in that the
client starts to pay just a little bit slower. project was estimated at 45% and the handicapping factor.
A key trade partner goes bankrupt. The overhead of the firm is 21%, you realize that For each project, the collection rate
supply chain sees a small interruption. A this project was an unmitigated disaster. show Pre- and Post-COVID. The resulting
ripple. Before long, the poster project Now consider projects in the new “Payment Risk Handicap” is shown on the
quickly becomes the pariah. environment. What if projects in this new far-right side. The aim of this factor is to
Firms are spending a great deal of Post-COVID world had similar normalize the data in such a way provides
energy to understand the short and long- handicapping practices to provide a an accurate comparison. For instance, the
term ramifications of the Post-COVID-19 different set of optics on a project? factors are shown in Table 3.
world. Throughout the world, there are Consider the list of projects in Table 1.
It is important to note that all of these
handicapping factors are deeply subjective.
While there are most likely industry
benchmarks, the idea is to use the internal
firm comparatives. For example, industry
collections hover around 45 days for above
average performance. That being said, the
contractor in this example operates
in multiple sectors so it is important to
projects that were irreparably harmed due This snapshot illustrates the firm’s work provide a factor that can translate to all
to stops and restarts, while others barely in progress for its complete portfolio. In project types.
saw a hiccup of a delay. For many, their addition to showing the variance from bid Now look at Multi-Family B. This project
work in progress report may have seen day, additional comparisons are shown actually showed some modicum level of
little disruption, allowing leaders to take a Pre-COVID and the margin as of today. The margin enhancement (7.15% from 7.00%)
deep sigh of relief. Is this a tad premature? contract values are shown to help provide but it is also showing a deterioration
Are some of these projects heading into the context on the margin contribution. From in collections. On the surface, this one
“Bad Zone?” this perspective, the forecast for the firm indication does not demonstrate potential
In what seemed like an eternity ago, we looks relatively strong. It appears our team failure but is it a portent of things to come.
had sports. Take a college football game will win but as we know from sports, this is In an similar fashion, the same process
pitting two rivals - the Southern Reptiles also the reason we play the game. could be done for other aspects of the
versus the Northern Polar Wolves - against One of the first areas that should be project. For instance, the aim is to examine
each other. The Southern Reptiles in this analyzed is the collection cycle. Table 2 areas that might have been adversely
game are favored by 2 touchdowns, or 14 is an illustration of the same project list affected by the COVID-19 pandemic or
points. Put another way, the Reptiles are but with a different characteristic – the
12 F E B R U A R Y 2 0 2 1 T H E C O N T R A C T O R ’ S C O M P A S SHowever, the scoreboard actively provides
feedback throughout the game and team
leaders use that data to develop course
corrections. If they are down by two
touchdowns in the first quarter and they
have zero yards of rushing, the coaches
enact a mitigation plan. Construction
leaders today cannot be lulled to sleep by
a “satisfactory” scoreboard. Doing so will
allow complacency to set in and the good
to become the bad.
any other economic deviation. In the process compliance are also calculated,
example in Table 4, the supply chain and the Table 7 provides a summary of each
About the Author
the critical path are investigated. Hospital B handicapping factor as well as a total.
project shows the greatest impact related As a principal with FMI, Gregg specializes
It comes as no surprise that Multi-
to material procurement. Interestingly in the areas of productivity and project
Fam B shows the greatest POTENTIAL
enough, this project was performing at a management. He also leads FMI’s project
for becoming “bad.” So, was the intent to
margin of 11% but it also shows the greatest management consulting practice. He has
create a tool that serves as a self-fulfilling
potential risk through schedule overages. completed complex and sophisticated
prophecy? The aim of any tool – whether
The handicapping factor was calculated construction projects in the several different
it be a standard work in progress report
based on the overage in Table 5. niches and geographic markets. He has
or a handicapped version – is to drive
also worked as a construction manager
action. With so many warning signs, senior
and managed direct labor. FMI is a unique
management not only has the optics to
and fast-growing firm of professionals
defuse a potential disaster but implement
passionate about creating a better future for
a series of steps to protect the firm. For
engineering and construction, infrastructure
instance, the firm can do any of the
and the built environment throughout
following:
North America and around the world. For
• Owner Meetings – Discuss payment more information on FMI, please visit www.
terms and examine customer liquidity fminet.com or contact Schoppman by email
• Schedule – Develop alternate work at gschoppman@fminet.com.
Similarly, a firm can measure the schedules or alternate products that may
potential “General Condition Burn Rate” be more readily available
which is another extension of the schedule
impacts. See Table 6. • Subcontractor Performance
– Conduct a series of deep
We see once again Multi-Fam B rears its trade partner coordination
ugly head again. While it would be intuitive meetings to discuss
to assume that any projection or forecast performance, risk mitigation,
would account for general condition etc.
overages, there are probably many
instances where managers fail to correlate Harkening back to the
the critical path and monthly cost report football example, if the Reptiles
effectively. were down by two touchdowns
at the end of the game, there
After additional factors for trade would be great disappointment.
contractor performance and internal
T H E C O N T R A C T O R ’ S C O M P A S S F E B R U A R Y 2 0 2 1 13F E AT U R E
Why Contractors Need to Make an IT Plan and Stick to It
by Steve Antill, Foundation Software
According to the 2020 JB Knowledge
ConTech Report, more than 22% of
construction workers said they use more
than six construction-based apps.
team to use the technology correctly,
it doesn’t always go according to plan.
According to AGC, while over 60% of
contractors indicated that they had a
formal IT plan that supports business
initiatives — compared to 48% in 2019
— many still struggle with choosing
tech and training employees to use
As the COVID-19 pandemic and realize the extra benefits technology their technology effectively. By creating
its restrictions continue at the start brings to their businesses. In its an effective plan — and sticking to it —
of 2021, the dust is still settling for 2021 Construction Hiring and contractors can succeed in their tech
contractors and the construction Business Report, Associated General goals throughout every stage of the
industry. Although a stimulus package Contractors of America (AGC) stated process.
and recovery could be on the way, that over 25% of respondents said that
in the meantime, contractors’ focus they planned to increase spending Starting your Own IT Plan
should remain on finishing existing on tech for document management,
Often, the best place to start creating
projects while preparing their business project management, accounting,
your IT plan is by reviewing what you
for whatever the future holds. To be estimating, and human resources.
already have. Begin talking with your
ready for what’s in store, contractors Along with this increase in individual IT person or perform your own internal
need a plan — or, more specifically, pieces of software, IT plans are also audit to get an idea of the software and
an IT plan. A formal IT plan can beginning to take a more rounded systems you currently have in place,
help contractors explore viable tech approach by looking at the entire along with which of those programs
options to increase the efficiency of picture of the tech platform to increase integrate to “talk” to one another.
their business, even in the face of the efficiency at every step of the way. Next, list the areas of your business
unfamiliar. Assessing which programs and that you know need improvement.
platforms are client-hosted compared In Foundation Software's 2020
Keeping Ahead of the to vendor-hosted, for instance, helps Construction Business Report, for
Competition to make sure that future software example, 41% of contractors noted that
A good IT plan can save your decisions align with IT plans. By having they needed better communication
business time and money, improve this mapped out ahead of time, owners between teams. 32% contractors
remote work, speed up workflow can get a clearer picture of how they struggled with manual processes, and
and strengthen data security, but it should proceed when implementing 17% had problems with the lack of
also helps to keep you competitive. new technology, and ultimately reduce mobile and integrated technology. As
That extra edge will be necessary costs. common areas where problems tend
to keep up as seemingly more and However, from finding the right to pop up, these may be good areas to
more contractors are beginning to product or platform to getting the begin your review.
14 F E B R U A R Y 2 0 2 1 T H E C O N T R A C T O R ’ S C O M P A S SKnowledge ConTech Report, over 22%
of construction workers said they use
over 6+ construction-based apps. Not
only can this cause “app fatigue” for
your staff from having to cycle through
all of these programs but without
integrations connecting these different
tools it also becomes too easy for data
to become scattered and segmented
across multiple platforms. With the
proper integrations in place, necessary
information can be easily shared with
minimal user intervention, ultimately
reducing errors and creating a single
source of truth for your data.
What’s on the horizon
While projections initially were
Fig. 1 Construction Business Report thrown off by the COVID-19 pandemic,
contractors may see government
With your audit of current tech get rid of it — or specifically invest in
relief sometime within the next few
complete, list out some of the needed new technology because it offers that
months. But in the meantime, don’t
features that your current tech doesn’t feature if they don’t have it. It can make
sit around waiting for recovery to just
have. If you have one, talk to your IT all the difference in how work moves
happen. Be proactive about improving
person to see what feedback they through the office.
your workflow through information
have. Similarly, see what the office staff
technology. Forming an IT plan will
likes and dislikes about your current Exploring Integrations help you recognize areas you can
tech — and make sure not to leave out After finding what you and your improve in the short and long term and
the field team, either! They may have employees need from your tech, talk prepare you for whatever the future
different problems or encounter other to your software vendors to see what holds.
issues that your office staff doesn’t. suggestions they have, even if it’s for
Keep this wish list in mind to help products they don’t specifically offer.
you narrow down your search to the Ideally, your vendor will have a solution About the Author
technology you actually need and not that addresses all your needs while Steve Antill is the CRO at Foundation
just the software or tech that looks also integrating with your current Software and Payroll4Construction.
“pretty.” As always, whenever you’re software. com, where he leads the charge for
looking for new tech, make sure it’s Through integrations, you can continual revenue growth, including
addressing your needs first. connect separate programs together new entry points into market to
Keeping your employees involved in to allow for cross-usage that normally serve contractors. He invests much
the IT plan also helps make it easier for wouldn’t be possible. For instance, of his time building partnerships and
them to “buy in” to any changes that a contractor may have software that relationships across the construction
have to occur. While a few employees specializes in job costing, but they industry with contractors, CPA
may suffer from technophobia and be may find that they’re spending too firms, associations and technology
naturally resistant to any tech changes, much time moving that data over to vendors. Over 20 years, he’s led more
putting new systems in place or their bidding estimate software. With than 1,000 software selections and
altering the steps to routine processes the right integration, they’ll be able to implementations for contractors of
can be frustrating for everyone access job costing data and features numerous sizes and trades.
involved. On top of that, new tech right from the bidding software’s Foundation Software delivers job
almost always requires more training, interface. In the end, this results in cost accounting, project management
disrupting already busy schedules saving time while also preventing any and mobile applications, along with
while making more demands from the costly re-entry mistakes. payroll services, to help contractors
staff to fit in training time. Because Many contractor’s IT plans often fail run the business side of construction.
of this, it’s important to keep your to include services that work with each For information, call (800) 246-0800 or
employees in the loop with your tech other, resulting in more time wasted email info@foundationsoft.com.
plans. If there’s a feature that makes on entering the same data in multiple
their tasks easier, you may not want to locations. According to the 2020 JB
T H E C O N T R A C T O R ’ S C O M P A S S F E B R U A R Y 2 0 2 1 15GOLD SPONSOR
F E AT U R E
Three Behaviors Top Teams Avoid to Excel in Struggle
by Chad Pearson, Plexxis Software
The bad news is struggle will define in a group completes 50% of the work, We serve the team by providing
the next five years. The good news is while the rest of the group shares the everything they need to succeed
those who excel in struggle will define remaining 50%" while protecting them from threats
the next 20 years. For example: and three categories of harmful
Thankfully, top teams who consistently • If there are 10 people in a group, behaviors: distracting, destructive, and
outperform competitors, regardless approximately three people do incompatible.
of the struggles they face, share one 50% of the work and 7 share the As leaders protect and serve the team,
common thread we can all learn from in remaining 50%. teammates protect and serve each other
order to build teams that not only excel • If there are 25 people in a group, by giving their best effort to make each
in struggle, but absolutely love it. approximately 5 people do 50% of day easier for everyone while supporting
A little warning first. This is a long the work and 20 share the remaining each other through bad days and
article so if you’re concerned about the 50%. protecting each other from bad habits.
next 5 years, set some time aside...If you • In a group of 100 people, Here’s a detailed breakdown of the
got the attention, we got the tips. Enjoy! approximately 10 people complete three categories of behaviors we avoid in
50% of the work and 90 share the order to prevent Price's Law and excel in
Here we go remaining 50%. struggle.
Many teams use their collective Any reasonable person would agree
wisdom and historical data to predict that Price's Law exposes unfairness Category 1 of 3:
and plan but that’s not enough anymore. between those who invest their best Distracting Behaviors
While past behavior has normally been effort, often referred to as ‘The Roots’ or An exceptional experiment called ‘The
a great predictor of future behavior, ‘A Players’ versus those who invest just Bad Apple Experiment’, by Will Felps
we now live in a VUCA world (Volatile, enough effort to get by. Even though from the University of South Wales
Uncertain, Complex, Ambiguous) where most would agree, few try to prevent it identifies three distracting behaviors.
the future is unpredictable and how when it becomes visible. (You can read about the experiment and
people interact is changing. how it ties to culture in; ‘The Culture
Past experience and metrics are How do top teams prevent Code: The Secrets of Highly Successful
becoming dangerously unreliable for Groups, by Daniel Coyle). Felps labels
predicting and planning for the future of
Price’s Law?
the behaviors as;
our VUCA world. Top teams who consistently
outperform others, despite challenges, • The Jerk (aggressive and defiant)
Top teams who excel in struggle and • The Downer (has a tired depressive
maintain an exclusive culture of
constantly outperform others go beyond attitude)
performance and family-like chemistry
metrics and focus heavily on preventing
that naturally protects them from Price's • The Slacker (withholds effort)
Price's Law from infecting their team.
Law in the same way strong families care While these three types of behaviors
Teams who prevent Price's Law turn
for each other and protect each other impact teams differently, Felps showed
the struggle of VUCA scenarios into
from threats and harmful behaviors. that all three categories of behaviors
advantages instead of obstacles while
taking immense pleasure in doing so. Our company, Plexxis Software, decreased the effectiveness of the
Following their path may be the single creates software for subcontractors. groups by about 30%.
most effective way to crush the next 5 As subcontractors work in a VUCA In short, when there’s a Jerk in the
years while becoming a defining force for industry, we have been hyper focused room, people don’t feel safe enough to
the next 20. on maintaining a culture that prevents open up, which harms the team and their
Price's Law for over 20 years. Of the outcomes.
What is Price’s Law? dozens of tactics we use at Plexxis, the When there’s a Downer in the room
MOST important for maintaining a strong who starts telling everyone how tired
Price’s law is an imbalance of effort culture that prevents Price's Law is our
on the team that gets worse as groups they are and shows physical signs of
‘protect and serve’ mindset. defeat, such as hanging their head low,
get bigger. The law itself says that “the
square root of the total number of people others in the room start behaving the
T H E C O N T R A C T O R ’ S C O M P A S S F E B R U A R Y 2 0 2 1 17same way and adopt the low energy There are many destructive behaviors, tech companies have invested trillions
attitude. In a relatively short period of but we labelled four as the top behaviors of dollars into creating ways of stealing
time, others have their heads down and needing swift decisive action in order to people’s time and attention while
arms folded just like the downer. protect teammates: influencing human behavior. Depending
When there’s a Slacker in the room, • HENIs (Hoarder of Information, on the study you read, people are
the group quickly picks up on the Emotional, Narcissistic, Impatient) interrupted by their phones between
vibe. They tend to get their work done • LALAs (Low Attention, 90-160 times per day. This is not healthy
faster but do half-assed jobs. What’s Low Absorption) in any arena, let alone on a team, but it
interesting is that they end up believing shows how powerful social tech tactics
• Smiling Assassins
they are doing good work when in fact, have become.
• Entitled
it is not good work at all. They simply Social tech is so good at what they do
pick up on the bad attitude and their The HENI is that person who that many people cannot even drive a
insufficient work ends up hurting the hoards information, is highly car without checking their devices. So
team. emotional, narcissistic and impatient. many people have fallen victim to social
These behaviors by themselves are tech tactics that distracted driving laws
Felp’s experiment also found that when
manageable, and at times can be found had to be put in place in order to keep
strong teammates lead engagements,
in any one of us, but together they are a people alive. Even car manufacturers
deflect negativity and keep others
destructive cancer that needs to be cut have started building lane automation to
engaged, the harmful behavior was
out from any team. keep drivers in their lanes. (Let that sink
mitigated.
These are the types of people who in)
An important thing to recognize here
need to control the world around them LALAs are extremely susceptible to
is that attributes like intelligence, talent,
and are willing to make their teammates' social tech’s theft of time and attention.
experience and other abilities you find on
lives more difficult in order to maintain Just like distracted driving, an effective
resumes matter much less than people’s
their own comfort. They will consistently way to protect teammates from LALAs is
attitudes and interactions. It is not what
inconvenience others just so they can to mandate and educate.
people do...it is how they interact that is
get what they want while refusing to
most important. Mandates command a healthy use
learn about and empathize with other
When teammates are aware of of devices and online content while
perspectives.
distracting attitudes they bring into education informs of the risks to mission,
The LALA is that person who willfully self and the team so teammates can
action, they can put effort into a healthier
invests low attention to teammates and make healthier decisions on their own.
mindset that helps them be their best
tasks and fails to stay in step with the
while maintaining an environment that Smiling Assassins are those who
team. They have a disregard for mission,
helps others be their best. are nice in front of you but gossip
self and team and tend to spend their
and undermine you in secrecy. While
time on things that have little to no value
Category 2 of 3: to anyone.
everyone deserves a chance to improve
their behaviors, this type of behavior
Destructive Behaviors Every working hour that a teammate should be considered a one strike you’re
Cutting these people from the team invests into ‘low attention and low out violation.
is usually an easy decision as they are absorption’ re-distributes workload
Entitled are those who believe
so toxic to the team. The challenge with onto other teammates while the lack of
oneself to be deserving of special
these people is when they are owners, attention to detail often results in errors
accommodation. Entitled behavior is
family, friends or key talent such as that require other teammates to repair
difficult to change but not impossible. At
CFOs, controllers or top salespeople. later.
Plexxis, we use a macro/micro empathy
In that scenario where the destructive LALAs are not to be confused with test to help make decisions on personal
behavior is from an owner, friend, family neurodiversity. Those with conditions accommodations. When someone has
member or key talent, leaders can lack such as ADHD or dyslexia do not choose a personal ‘micro’ request, we test to
the courage to protect the team. This to pay less attention while in action and see if it fits and helps the team ‘macro’
lack of courage comes at a great cost. when provided the right environment, mission. If the macro and micro fit, the
It may help those in this scenario to they can be among the highest accommodation is considered.
know that this scenario is the leader’s performing and most caring teammates.
biggest opportunity to show the team LALAs choose to give their attention Category 3 of 3:
how important they are. The single away to other things that result in harm
courageous act of cutting seemingly to teammates, the mission and even their
Incompatible Behaviors
indispensable people who are toxic can own heath. These behaviors are extremely
reset an entire team on an incredible challenging to avoid in today’s
Today’s biggest threat in relation to
path. environment as they can be great
LALAs are online distractions. Social
18 F E B R U A R Y 2 0 2 1 T H E C O N T R A C T O R ’ S C O M P A S SYou can also read
