Contractors are always complaining that they can’t find skilled people. We often hear complaints like: “You can’t find good people anymore”, or “None of these youngsters want to work these days”, or “I have a problem with my staff stealing”, or “My workers are so unreliable”, or “I can’t find skilled people” and more. I’m sure you’ve heard all the complaints, maybe you’ve even said some of these things. Of course sometimes they are true, although often they are generalisations and it’s only a few bad individuals.

Yet, many contractors and construction project managers have a set idea on who is employable in construction. Probably, ideally the person should have experience, they should be fit and healthy, probably young, and even in many cases a male. But are these always essential characteristics? Are we excluding many in this employment process that perhaps may be suitable? What we do know however is that we are including people who don’t always prove to be suitable.

I was fortunate to be born with no physical or mental disabilities. I was even more fortunate to come from a stable home where I had good influences and I was able to attend good schools. Yet, despite this good luck I’m sure I have my faults and shortcomings, and I’m sure I’ve messed up some opportunities and made a mess of a few things in my life.

Of course not everyone is as fortunate. By a stroke of bad luck something goes wrong with a person’s genes, or something influences development of the embryo, or there’s a problem during birth and the person has a mental or physical disability. These disabilities can range from relatively mild or even benign issues, to major problems that radically impact the person’s mobility and speech.

Unfortunately even those born without a disability can be impacted later in life. Some fall in with the wrong crowd, even serving prison time. Veterans suffer stress and trauma during active service. Motor vehicle accidents can change a person’s life in an instant. People suffer sickness which can drain them physically and financially. Life can be tough for some people.

​ Many contractors have poor employment practices which leads them to employing the wrong people, or being unable to find people at all. We all discriminate in some manner, we all tend to pigeon hole people on their backgrounds, looks, race, age, gender, etc. But, in doing this are we excluding people who could fill a role perfectly on our construction project or elsewhere in the company? After all, what is the right person in construction?

When you start your next construction project, how about setting a goal to employ the following 6 people. Employ one person with a disability – physical or mental disability, it doesn’t matter. Employ one older person – someone over 50. Employ a homeless person. Employ a veteran. Employ at least one woman – and not in an office role. Employ at least one person who has no construction experience, someone that you plan to mentor and train. Of course if you can employ a homeless, disabled and elderly veteran, then all the better. 

I believe that you may be surprised, you may just find that you’ve employed a hardworking, reliable and loyal individual. What have you got to lose? How often have you employed an individual that you thought was just right for the role, only to have them let you down when they turned out to be lazy, unreliable or dishonest?
Not everyone has been born lucky like most of us have been. Some have had tragedy, disability or a poor upbringing. Yet, many of these people aren’t looking for an excuse, they often understand their limitations, but all they are looking for is an opportunity to have a job and prove their worth. All they’re asking is a fair go. All we have to do is give them a fair chance, not just exclude them because of our prejudices, rather listen to them and see what they can offer your company and construction projects. Be open to new ideas and possibilities. Maybe even adjust and reorganise the construction project slightly. Of course the process requires buy in from the rest of the project team, who usually have their own preconceived ideas and prejudices. Everyone in the team needs to be open to giving new employees a fair opportunity. I believe that your construction company and projects will be well rewarded for your efforts.
What successes have you had when employing a disabled person, perhaps a homeless person or an ex-convict?
What are your thoughts on employing some of the people mentioned above?
 
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​You are about to start your construction project. The owner (or their project manager) hands you access to the work site. You are good to go – or are you?

Unfortunately, contractors often accept possession of project construction sites, or construction work areas, and don’t check it. Only several weeks later do they discover that there’s a problem, they’re losing money, the construction work is going slower than expected, or something doesn’t fit. Only when they investigate do they discover that the problems originate because the work site given to them wasn’t in accordance with the construction project specifications and contract document. Often by then, it’s too late to complain.
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So next time you are handed access, or possession, to a work area or construction project site, make sure you check it properly before accepting handover.

​Before accepting handover of an area from the client/owner or their project manager it’s important to check the following:

1. Can you get to the construction work area – sure the owner may have handed you access to the area but can you actually get your people, materials and construction equipment there? Frequently owners hurriedly clear the work area and think that’s good enough. If contractors can’t get their people, materials, and construction equipment to the work area, or it’s difficult to get stuff there because the owner is blocking the routes to the site then it will impact construction progress, cause delays, and ultimately cause the contractor additional expense. When pricing the construction project always understand how you will get access to the work areas. If the owner must provide a road so your team can access the work areas then ensure that they deliver the road so that you can get to the area. If there is doubt, then stipulate in your price what access you require, then ensure these requirements are included in the contract that you sign. Then importantly, before accepting the work area check that you can easily access it – can you get to it?
2. Do you have access to the full work area? Owners and clients often only provide partial access to construction work areas. They seem to assume that as long as the contractor can start work somewhere that’s okay. But, often construction schedules require work to start in a specific area first, an area that’s on the critical path. In addition, contractors plan their construction work so that resources aren’t working on top of each other, so that work can proceed in an orderly direction, a direction where access isn’t impeded by previously completed work, where construction equipment can easily get to, and where materials don’t have to be double handled and moved backward and forwards across the work site. Be very wary about accepting partial access to the work area when you should have been granted full access. Make sure that this won’t adversely impact the construction schedule or the productivity of your resources, and that the work you complete now won’t block your access to other areas you are only able to get to later.
3. Is the area prepared properly, to the correct specifications and tolerances? Frequently owners have to hand over sections of work that other contractors have prepared. This may be a leveled earth platform, an excavation or a concrete slab. It’s imperative that contractors check the previous work to ensure that it is in the right position, that levels and heights are correct and that the items meet the required specifications. So, if you’re accepting a leveled earth platform, is it in the right place? Is it to the right height and level? If it’s too low and you’re pouring a concrete slab on top of the platform you may find that you require additional concrete to make up the low spots. If the area is too high you may find that your crews are spending additional time and money trimming the ground lower so that your concrete will be at the right level. If the ground hasn’t been compacted properly you may later find that your concrete slab and foundations constructed on the platform cracks and the owner will blame you. Always carry out your own checks to ensure everything is in the correct position. Ask for the test results to confirm that what you’ll be building on has been formed and constructed to the correct specifications.
4. Is the area safe? Once you accept access to the construction work area you will be responsible for the safety of the area. Sometimes owners hand over excavations done by previous contractors. Don’t accept them if the sides are excessively steep, meaning they could fall in on top of your crews. Make sure that there aren’t boulders on the sides of the excavation which could fall onto your team working below. Fixing these problems will be expensive and time-consuming. You don’t want to have the owner or other contractors working above you, or performing dangerous tasks nearby which could injure your crew. Only accept a work area if it’s safe.
5. Has the owner fulfilled all of their contractual obligations? These might include completing demolitions, installing security and moving existing service and utility lines. If they haven’t you might end up doing the work, which will be an added cost and cause delays, or the client may do the work, but invariably this will interfere with your progress. Understand the client’s obligations and ensure that these have been met before accepting the work area.
6. Is the construction area as you expected? If it’s recently rained and the works are flooded or boggy is it reasonable for you to take the problem over? Well, it depends on the construction project contract and what should be accepted as being reasonable. So if a previous contractor, or the owner, has excavated an area for your work, or they have prepared concrete foundations, then it would be reasonable to expect that these be handed to you in a dry state. Sure, once you accept the area it will probably be your responsibility to keep the area dry unless otherwise stipulated in the contract, but you should be handed a dry area. So too if you are expecting to be handed a leveled area to work on you would expect this area to be firm ground. If the owner or another contractor has previously worked in the area churning up the ground, excavating trenches which they haven’t filled and compacted properly, then probably you shouldn’t be expected to accept this mess. Always understand the contract document.

​To read more about the author’s books and find out where you can purchase them visit the pages on this website by clicking the links below:

• '​Successful Construction Project Management: The Practical Guide'
• 'Building a Successful Construction Company: The Practical Guide'
• 'Construction Claims: A Short Guide for Contractors'
• 'Construction Project Management: Tips and Insights'
• ​'Construction Management: From Project Concept to Completion'
• and 'Build and Renovate Your Home With Your Eyes Wide Open'

'Construction Book reviews'
To read more about the author visit the page 'Paul Netscher'
Want to contact Paul Netscher please enter your details on 'Contacts'
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Bullying is rife on some construction projects. Workers bully co-workers. Managers and supervisors can even bully those working for them. Clients bully contractors.

Bullying takes many forms, from physical contact to even discriminatory jokes. The bullying happens during work hours and after work.
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Nowadays, cyberbullying is rife, and circulating rude messages and comments is a popular form of bullying. We often think of cyberbullying as being a scourge that only impacts kids, but it’s frequently used by adults as a nasty weapon.

People on construction projects come from diverse cultural backgrounds. They have different educations and different intellectual abilities, practice various religions and have been brought up in different ways.

People that are different are often picked on and bullied. It’s unimportant that people have external differences. What’s important is that we work as a unified team, working to a common goal, using the best of our combined skills and abilities to deliver the project successfully.

Discrimination in construction – is it holding your company back?

The suicide rates among construction workers are among the highest of all industries. Bullying is a major contributing factor. What you can do about the silent killer in construction that no one talks about – Suicide.

Bullying undoubtedly leads to mental health issues in construction workers. It results in depression. It impacts morale on the project. It lowers productivity. It results in absenteeism. It disrupts teamwork and causes disunity.

Bullying also leads to other problems, like alcoholism and drug addiction. Problems at work are often taken home where they impact families. It can result in sleep disorders. All of these inevitably negatively impacts the person’s work, leading to lower productivity, poor quality, and unsafe acts. The use of drugs and excessive consumption of alcohol - how does it affect your construction project?

Bullying sometimes leads to violence on construction projects when the bullied person can no longer take it and they turn on the bully. In the worst cases, people have been shot dead on construction project sites. Unfortunately, often others are injured and killed in these incidents – incidents that scar those on the project and lead to disruption of the construction project.
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In “rough and tough” construction, workers can be scared to report bullying and they are afraid to seek help for depression and other mental health problems.

As mentioned above bullying takes place between clients and the contractor, and between contractors and their subcontractors.

Paying contractors late is a form of bullying. Threats and intimidation are bullying tactics. Threats that “you’ll never work for me again” are intimidation.

Of course these forms of bullying place enormous stresses on the construction project and construction company managers. They can’t afford to deliver a service below cost and they also can’t afford to be blacklisted by clients. They have to pay their bills at the end of the month.
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Bullying of contractors leads to contractors becoming bankrupt. When a contractor becomes bankrupt, they can’t pay their bills and they become demotivated.
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In construction it’s important to know your clients. It could save you.

Stopping bullying starts with the example you set.  Here are a few personal checklist questions you can ask yourself about bullying on your project.
How do you treat people? – Are you fair and respectful? Would you want others to treat you in the same way as you treat them? Respect in construction - why it's important
Do you respect and understand the differences between cultures and people? – We are all different and have our own unique and sometimes quirky ways of doing things. What’s important is that we are all working to the success of our project and company.
Are you aware of what’s happening in your teams and between co-workers? – Is there bullying?  Pull bullies aside and remind them that bullying is unacceptable. Serial bullies should be reprimanded and even removed from the project.

Bullying and harassment are never acceptable and everyone on the project must be aware that bullying will not be tolerated. Those who have bullying problems or mental health issues must have a sympathetic ear to talk to. They must know that they can safely report bullying. They must know that bullies will be dealt with by management.
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Stand up to bullies.

Nobody likes working in an unpleasant or toxic environment. Everyone should feel safe at work. No one should be bullied because of their physical, cultural, educational or monetary differences.

Bullying wrecks lives and it can wreck your project.
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Make this a month to stamp out bullying on your project and in your company.
The good mental wellbeing of those working with you is essential to the success of your project.
​​Good employees are critical to the success of your construction project in more ways than one

​This article was first published on the ClockShark website. 
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​To read more about the author’s books and find out where you can purchase them visit the pages on this website by clicking the links below:

• '​Successful Construction Project Management: The Practical Guide'
• 'Building a Successful Construction Company: The Practical Guide'
• 'Construction Claims: A Short Guide for Contractors'
• 'Construction Project Management: Tips and Insights'
• ​'Construction Management: From Project Concept to Completion'
• and 'Build and Renovate Your Home With Your Eyes Wide Open'

'Construction Book reviews'
To read more about the author visit the page 'Paul Netscher'
Want to contact Paul Netscher please enter your details on 'Contacts'
Find out how Paul Netscher can help you

We often focus on the way people dress. Sure being dressed appropriately does show respect. But, does the way you dress really reflect the talents, skills and work ethics that you can bring to a company. There are even some who won’t offer a person a job because they have weird hairstyles, tattoos or dress differently. Indeed, I was surprised to hear a few years back that because I have a beard it was seen as reason not to promote me – now I know I have many shortcomings which could potentially be held against me, but I never considered having a beard was something that in anyway impacted the way I did my work!

The other night I was watching a television program where a partially disabled person had been searching for a job for eight years. Another had been in prison and four years after being released nobody was prepared to offer her a job. They were desperate for a job. Was a partial disability, or a prison sentence enough to condemn them to never having a full time job?

We all take our preconceptions with us. The way we were brought up, the environment we grew up in, our past experiences, and of course the people we associate with all contribute to the way we act and operate. We are all guilty of being racist to some degree. We often talk about people in terms of their nationality, country of origin, gender, colour or ethnicity.

This article was first published in an abbreviated form on the ClockShark website. 
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​To read more about the author’s books and find out where you can purchase them visit the pages on this website by clicking the links below:

• '​Successful Construction Project Management: The Practical Guide'
• 'Building a Successful Construction Company: The Practical Guide'
• 'Construction Claims: A Short Guide for Contractors'
• 'The Successful Construction Supervisor and Foreman'
  
• 'Construction Project Management: Tips and Insights'
• ​'Construction Management: From Project Concept to Completion'
• and 'Build and Renovate Your Home With Your Eyes Wide Open'

'Construction Book reviews'
To read more about the author visit the page 'Paul Netscher'
Want to contact Paul Netscher please enter your details on 'Contacts'
Find out how Paul Netscher can help you

In a previous article, I discussed how important it is to know whether your construction project is making or losing money. Some contractors don’t bother with project cost reports. They simply hope for the best, and that the construction project ends profitably.
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While some contractors do sometimes prepare monthly project cost reports, unfortunately, these cost reports are of little value because they contain errors, or the information contained in them is ignored by the project team.

​Common construction project cost reporting mistakes include:

1. The cost reports take too much time to prepare. This takes valuable management time away from managing the construction project. Cost reports should be easy to complete and require minimal time. Reasons for reports taking time to complete include that:
   1. The information required to complete the report isn’t readily available. It’s essential that the company’s systems supply accurate costs in the same format and codes as the reports use.
   2. The cost report is too complex to fill in.
   3. The cost report breaks items down into lots of detail, making it difficult and time consuming to track down the costs and revenue for each item or code. 
2. The cost reports are sometimes only completed months after the events occurred. This is because the data required for the report isn’t immediately available, or the company only requires the cost report by that date. Unfortunately in the interim since the data was collected much has happened on the project. Frequently when a loss is detected it’s too late to rectify the problem and in the meantime the losses have become worse. Cost reports need to be current and should never be later than a month after the project costs were incurred.
3. The project cost reports include revenue from variation claims which haven’t yet been approved by the client. I’ve had managers instruct me to add in variation claims to our project revenue, even though these claims hadn’t been accepted by the client. As long as the client hasn’t approved a claim it’s in doubt and may be rejected, or the final agreed quantum could be less than the amount claimed. Trading on variation claims provides a false sense of security and the project could appear profitable, only to take a dramatic loss when the claim is later rejected. But, as long as the project team doesn’t allow for the variation claim the cost report shows a loss and the project team will be spurred into action to quickly agree the variation claim with the client so that the losses can be recovered. 
4. The cost reports don’t include all the construction project costs. This obviously means that the project shows a profit until the missing costs are added, surprising management when the project suddenly shows a loss.  Construction projects costs might be missed because:
   1. Subcontractors or suppliers are late submitting their invoices. Always ensure that all work has been accounted for in the cost report, even if it’s only an estimate.
   2. Not all project costs have been captured. This might be because the processing of invoices are late or because some costs have been accidentally omitted. Again efficient company systems are essential to ensure all costs are captured when they’re incurred.
   3. Suppliers’ and subcontractors’ invoices haven’t been paid. This might be because the project team is disputing part of the invoice. 
5. The cost reports aren’t comparing revenue against the correct costs. This is because costs or revenue haven’t been allocated to the correct items or codes. Although the overall construction project profit or loss could be correct, individual items may be incorrect, meaning that the losses seen aren’t actually for those items but are for something else. This makes tracking the cause of the loss difficult.
6. The revenue used is incorrect. Often the project revenue is overstated because:
   1. The monthly progress valuation or claim is incorrect and includes an over claim – a claim for work that hasn’t been done or is incomplete.
   2. The preliminaries or overheads are claimed from the client each month according to a set pre-agreed rate. However the costs associated with the preliminaries are frequently not incurred at the same rate and these costs vary depending on the stage of the project. 
7. The data hasn’t been entered correctly. Sometimes in the rush to complete the report the project team makes the incorrect assumptions or even guesses costs.
8. The cost report doesn’t take into account the costs of completion. Often construction projects appear to be profitable (their cost reports show a profit) until the last few months when things suddenly go wrong. Project teams regularly underestimate the costs of completing punch-lists (snag-lists), completing project documentation, and handing over the construction project.
9. The project team assumes the wrong reason or cause for a loss. I’ve previously written about a construction project where the cost report showed the project was losing money on concrete materials and the project manager attributed the loss to the fact that the client had changed the concrete mix design, asking for additional cement which we would claim later. Yes, this did contribute to the loss, but when we eventually uncovered the real cause for the loss, which was that cement was being stolen from the project, we had lost over a half million dollars. Frequently the project team is quick to blame the estimating team for losses on the project, when in fact the main contributing factors are something else. Often losses are caused by a number of different problems, so uncovering and solving one reason may only be part of the solution.
10. The reports are deliberately manipulated by the project team so that losses aren’t shown. They either deliberately hide costs or add in additional revenue. Of course, ultimately the truth will come out. I’ve never found a construction project making a loss suddenly became profitable without action being taken to stem the loss and reduce costs, or to find additional revenue, such as a justifiable variation claim.
11. The information contained in the cost report isn’t acted upon. Cost reports should highlight areas of concern and, if required, additional information could be sought to uncover the actual cause of the problem.
12. Cost reports are ignored by the project team. There is little point in completing a cost report if it's going to be disregarded. Ignoring a cost report which is showing signs that the project is losing money could mean that losses continue to increase leading the project and company into financial difficulties. Actions aren't taken to stem the losses.

Cost reports are only valuable if they are correct and if the information produced in the cost report is acted on by the project team. They should be easy to complete and simple to interpret so that project management time isn’t taken up preparing the report.

It’s important to investigate anomalies in cost reports. Don’t just take the report at face value. I’ve discussed investigating your losses, but sometimes it’s equally important to investigate where you are making money. You don’t want to find later that where you thought you were profitable you actually aren’t, and there were in fact errors with your report.
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What mistakes have you encountered on construction project cost reports?
#constructionfinances #constructionmanagement #contractors #constructionprofits

​To read more about the author’s books and find out where you can purchase them visit the pages on this website by clicking the links below:

• '​Successful Construction Project Management: The Practical Guide'
• 'Building a Successful Construction Company: The Practical Guide'
• 'Construction Claims: A Short Guide for Contractors'
• 'Construction Project Management: Tips and Insights'
• ​'Construction Management: From Project Concept to Completion'
• and 'Build and Renovate Your Home With Your Eyes Wide Open'

'Construction Book reviews'
To read more about the author visit the page 'Paul Netscher'
Want to contact Paul Netscher please enter your details on 'Contacts'
Find out how Paul Netscher can help you