How to build work and make money

TL;DR: 

“This how we do it where I’m from” - DJ Mannie Fresh

34 tips I wrote down 10 years ago about profitably building civil construction projects

A project manager’s guide to the galaxy

1. Know the money

2. Know how you are getting paid

3. Memorize the specs, the plans and the money

4. Focus on cost. If money is being spent that’s not in the budget, you need to know about it. Field management must know this communication is expected

5. Safety of your people trumps the money. Not a victory if someone gets hurt. No "just win baby"

6. We have to make budget and outperform budget

7. We have to win every day on the job somehow

8. Do not be a victim

9. Know what you have in the item before you get to it and plan your work accordingly. Do not plan for failure

10. Plan and stay ahead of the work

11. A delayed crew because you and the Superintendent weren't prepared better not happen often if ever at all

12. Luck does not make money

13. When you get a job, look at the money and the specs before the plans. What are my variables to making and losing money? Where is the money – labor, material, subs, which items? What items are we into? What items are we out of? Your job is to know the answers

14. It's not brain surgery, just know your variables before you start the item

15. Translate the game (lump sum, unit price, reimbursable) into the field

16. Pick key field team members and tell them about the money in terms they can understand

17. The crews won't know what you want unless you tell them

18. Get out in the field and talk to the people who are actually doing the work. Ask them what can we do better? They usually know. You are only as good as your people and the standards you hold

19. Help the crews win, tell them they're winning and they'll love to win. You've got to let them know that they are doing a good job when they are performing

20. One extra worker is about $300 per day, $1,500 per week or $6,500 per month. Less labor often means more money. Always watch your labor, this is where money is normally made or lost

21. Check yield, let the employees know you are checking it and why it matters

22. The plans are the plans and the specs are the specs. Get along with the Owner so that you can give them the product they designed at the price that you want to do it for

23. Document changes in writing, be able to explain why and how

24. More money is made on extras with pricing is submitted ahead of time. Submit pricing beforehand using fair, standard rates. Avoid T&M unless it is the only way

25. Stay overbilled

26. Job site safety, housekeeping, equipment condition matter

27. Positive attitude and project team chemistry will improve the job outcome especially on long term jobs

28. When the job team is not aligned, it is ugly and obvious to the outsider

29. Be prepared for and expect obstacles and change

30. Embrace good ideas that aren't your own

31. If an item is losing money, go look at it with your own two eyes and make changes. Don't freeze up or throw the “We are destined to lose” towel

32. A job that was bid at 15% where you made 16% and could have made 20% is not a success

33. A skilled, motivated field workforce that knows what needs to be done to win is your advantage

34. The bosses are looking for leaders who positively affect the job outcome on money and safety

I wrote these 10 years ago and shared them with new hires at our civil and paving construction company.

A lot has changed since then. Much hasn’t.

Would this sign scare you?

This. Is. Awesome.

Shoutout to Ajax Paving Industries of Florida, LLC + Teleo + Dobbs Positioning Solutions. Finding a better way is never easy… Bravo!! 🦾

Stoic Wisdom Quote

“The quality of your life is the quality of your relationships.” 

- Anthony Robbins

Reflect on this as we embark on another week of bidding and building!

We value your feedback. Tell us what you think about this week’s newsletter below.

Warmly,

Tristan

About the Author

Tristan Wilson is the CEO and Co-Founder of Edgevanta. We make software that helps contractors win more work at the right price. He is a 4th Generation Contractor, construction enthusiast, bidding nerd, ultramarathoner, and paving nut. He worked his way up the ladder at Allan Myers in the Mid-Atlantic and his family’s former business Barriere Construction before starting Edgevanta with his Co-Founder Matt in Nashville, where the company is based. Reach out to him at [email protected]