Q:
I have been bidding construction of exterior architectural metal walls, soffit and roofing as a subcontractor on State truck shed maintenance facilities. We have worked on only one shed and have bid on two projects that we didn't get. On the one job we completed, the facility manager told our crew we had performed the "best quality of metal panel and trim work" that he had ever seen. We also came in ahead of schedule. When the final punch list by the state was issued, we came back the next day and fixed our two items.
Because of the job's prevailing rate compliance issues, all subs had to have their time reports accurately submitted. And until all subs reported, the state would not settle final payment. We complied within one week of our completion, but we didn't receive full payment of our retention for ten months because three subs on the job had not kept accurate time, and their reports were rejected.
On one of the jobs that I bid and didn't get, the general contractor (GC) chose to self-perform and finished later than the time requirement. This was the second time this GC failed to finish on time, but the state saved some money because at least they were the low bidder! I could go on and on.
What should I do? GCs need a standard of business practices to follow, and it is also important to have customers who are willing to pay for the best quality. GCs and owners who buy on a low-bid basis can't expect the best quality workmanship. GCs who demand timeliness of subs need to be timely in their contract payments, or they should develop a system who rewards subs that perform in excess of their minimum expectations. Any thoughts?
Dan Williams
Williams Builders, Inc.
A:
Unfortunately, your story is the same story most public works contractors continuously experience. When customers don't pre-qualify contractors and award projects based solely on price, quality takes a back seat and isn't valued much. The state issues a standard specification outlining their minimum standard and then seeks the lowest price to do the work. Seek out GCs who also value your business practices and pre-qualify subcontractors for the projects they build. In public works bidding, the GC has no choice but to take the lowest bidder in order to also be the lowest bidder, so they can be awarded the job. Then in most states, the GC must list out the low subcontractors with their bid. This requirement doesn't allow them to choose the most responsible and qualified bidders. This is a bad practice for all involved.
I am afraid that if you keep bidding on similar projects, the same outcome will continue. Your choice is to grin and bear it, or seek out different customers who value quality workmanship. Are there any manufacturing companies in your area that need what you offer? Are there any ongoing maintenance contracts that you could seek in your area? These type of customers place a much higher value on service and quality than the state. Invest a little time in marketing and sales, and go after more private construction and service work.
Q:
We are a general contracting company that pours a lot of concrete foundations, slabs and structures. Any suggestions about how to get my field crew to work a little faster on our projects?
Jerome Furlow
Star Contractors
A:
Hold an all crew meeting, and explain the reality of why you have to get them working faster-the slow economy requires you to bid more competitively, and you need to eliminate as much downtime and waste as possible. Ask the crew for ideas on how to eliminate waste, build faster, work better as a team and increase efficiency. Get their suggestions to make improvements in your methods, tool maintenance and equipment management. This will help you focus on what needs to be done. Some of the crew won't feel comfortable volunteering ideas in front of all the others, so pass out notecards, and ask each person to write down three suggestions for improvement. Have an open discussion about how to implement these ideas, and then assign crew members to implement the ideas.
Construction Business Owner, May 2010
