MONTHLY EDUCATIONAL JOURNAL OF THE FOUNDATION OF THE AMERICAN SUBCONTRACTORS ASSOCIATION
APRIL 2022
Finance Corner
Numbers/Costing/KPIs
KPI= Key Performance Indicator
1004 Duke Street, Alexandria, VA 22314 | (703) 684-3450 | www.asaonline.com | communications@asa-hq.com
FASA'S
APRIL 2022
EDITORIAL PURPOSE The Contractor’s Compass is the monthly educational journal of the Foundation of the American Subcontractors Association, Inc. (FASA) and part of FASA’s Contractors’ Knowledge Network. FASA was established in 1987 as a 501(c)(3) tax-exempt entity to support research, education and public awareness. Through its Contractors’ Knowledge Network, FASA is committed to forging and exploring the critical issues shaping subcontractors and specialty trade contractors in the construction industry. The journal is designed to equip construction subcontractors with the ideas, tools and tactics they need to thrive.
F E AT U R E S The New Era of Subcontractor-Led Prequalification ...............................10 by Bespoke Metrics
Essential Construction KPIs to Improve Profits and Productivity.......13 by Grace Ellis, Autodesk
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).
How a Compelling Organizational Purpose Enhances Creativity......16
MISSION
How To Stop Buying Into Projects With Your Own Money................... 18
To educate and equip subcontractors and suppliers with the education and resources they need to thrive in the construction industry. Additionally, FASA raises awareness about issues critical to and about construction in the United States.
SUBSCRIPTIONS The Contractor’s Compass is a free monthly publication for ASA members and nonmembers. For questions about subscribing, please contact communications@asa-hq. com.
ADVERTISING Interested in advertising? Contact Richard Bright at (703) 684-3450 or rbright@ASA-hq.com or advertising@ASA-hq.com.
EDITORIAL SUBMISSIONS Contributing authors are encouraged to submit a brief abstract of their article idea before providing a full-length 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 and FASA. The editor reserves the right to edit all accepted 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 ASA is a nonprofit trade association of union and non-union subcontractors and suppliers. Through a nationwide 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 integral part of the construction team. For more information about becoming an ASA member, contact ASA at 1004 Duke St., Alexandria, VA 22314-3588, (703) 684-3450, membership@ASA-hq.com, or visit the ASA Web site, www. asaonline.com.
LAYOUT Angela M Roe angelamroe@gmail.com © 2022 Foundation of the American Subcontractors Association, Inc.
by Mark Marone, Dale Carnegie Training by Duane Craig, Writer
Lowering DSO: Best Practices to Get Invoices Paid Faster............... 20 by Patrick Hogan, Handle.com
Realism in Job Cost Integrity: Why some projects....................................22 appear to be winning when they lose at the end by Gregg Schoppman, FMI
Numbers, Costing, KPIs — Oh My!....................................................................24 by Jack Rubinger, Freelance Journalist
SESCO 2022 Webinar Series................................................................................25
D E PA R T M E N T S ASA PRESIDENT'S LETTER.................................................................................. 5 CONTRACTOR COMMUNITY..............................................................................6 ALWAYS SOMETHING AWESOME....................................................................8
QUICK REFERENCE Upcoming Webinars................................................................................................27 Coming Up....................................................................................................................27
Save on everyday business needs. ASA understands and supports your personal and professional needs. That is why we have leveraged the buying power of our members to deliver business solutions and services that can help control costs and improve your bottom line.
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For more visit: 1800members.com/asa Forinformation, more information, visit: xxxxxxxx.com/ilea or call or call xxx.xxx.xxxx, monday-Friday, 8am - 5pm, 1.800.Members (800.636.2377), Monday-Friday, 8amET - 5pm ET
PRESIDENT 'S LET TER Dear Readers — I hope everyone had a wonderful time with family over the Easter Weekend, and is looking forward to warmer weather, summertime around the corner and a bright future ahead. I know at Lone Star Paving, the temperatures are now well above freezing and we are into the hot mix asphalt season, which means we have a lot of business days to come. I also wanted to welcome Autodesk to the family of ASA Sponsors, and I am grateful for their support of the subcontractor community. If you were able to attend ASA’s SubExcel conference this year, I hope you took away as much as I did from the experience! The leadership training was top-notch, and the peer-to-peer networking (now that we are moving beyond COVID-19) was great to enjoy. As always, hats off to the ASA staff for putting on an amazing program, and all of the magic they do behind the scenes to make these events a success. This issue has a number of interesting articles. I hope you will enjoy Dale Carnegie’s article about motivation, purpose, and innovation, which on the surface doesn't directly deal with finance, but of course...in the end, it's all about productivity, and greater productivity leads to greater profitability. Likewise, Gregg Schoppman writes about cost integrity - why some projects appear to be winning, but when all is said and done, they lose. Those that are involved in operations or finances should find this article very interesting. As was mentioned at SUBExcel, we are starting the relaunch of ASA’s Foundation (FASA). We hope to have a related article each month, and believe this is the first step in a truly remarkable plan for subcontractor and industry education, advocacy and leadership consistent with our vision of fair contracting, better quality, and a safer working environment for all stakeholders. As always, thank you again for the opportunity to serve as your National ASA President. Start thinking about, and make sure your calendar is blocked off for SUBExcel in Ft. Worth next year, March 8-11. Sincerely, Brian K. Carroll ASA President 2021-2022
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CONTRACTOR COMMUNIT Y Welcome to our Newest Platinum Sponsor
Automation and artificial intelligence are changing the nature of work. Future-proof your workforce and your career with insights, technology, and training from Autodesk.
Prequalification Technology Built for and by Subcontractors As we operate during uncertain times, Subcontractor risk management has been instrumental in maintaining the integrity of the construction supply chain. Over the next few months, the majority of the market will be requested to renew their
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prequalification as 2021 financial statements become available, known as The Great Expiry. General contractors have never had this much choice in digital tools to streamline requalification. With the rapid adoption of preconstruction technology, general contractors are following prequalification best practices regardless of insurance requirements. This further widens the technology gap, perpetuating the need for subcontractor involvement in the development of said digital tools.
To combat the increasing volume and repetitiveness of prequalification, the ASA is coordinating efforts to bring
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awareness and an openness to subcontractor-led prequalification to the general contracting community. With this initiative, the ASA supports the use of COMPASS, built for subcontractors to address the concerns of form fatigue, data ownership/privacy, lack of feedback and transparency. Subcontractors need only to update their information once per year through their standard 1Form, and satisfy all requests for prequalification securely. Throughout The Great Expiry, COMPASS aims to disconnect prequalification from the project. By updating data when its first available, subcontractors are in control and are better prepared to discuss prequalification limits with general contractors, which may result in larger
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contract sizes and more business opportunities. We understand there is a cost associated with COMPASS and believe prequalification is a benefit to our industry. The responsibility and costs should be proportionately shared across the supply chain. In this competitive environment where there is a race to the bottom, prequalification not only ensures all parties on the jobsite are capable of meeting contract obligations, but promotes qualitybased selection, further protecting our margins and interests. To learn more about Bespoke Metrics, visit https://compass. bespokemetrics.com or email info@ compass-app.com to schedule a demo.
ASA Will Comment on OSHA’s Recordkeeping Regulation Relating to Construction On March 30, 2022, OSHA issued its proposed amendments to its recordkeeping regulation. The current regulation requires certain employers to electronically submit injury and illness information to OSHA. The most significant change is that covered establishments with 100 or more employees in certain high-hazard industries—including construction— are now going to be required to electronically submit information from their OSHA Forms 300, 301 and 300A to OSHA once a year (rather than just the 300A), and the data will be posted online by OSHA. In addition, the proposal will remove the current requirement for establishments with 250 or more employees not in a designated industry to electronically submit information from their Form 300A to OSHA annually and require establishments to include their company name when making electronic submissions to OSHA. ASA will plan to submit comments to the rule by May 31, 2022.
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The "Chapter Scholarship Fund" Is Now the "Brianna Wright Memorial Scholarship Fund"
being there made for them. Brianna Wright loved coming together with her ASA family, and we hope that this effort will help others join in something she enjoyed so much. If you are interested in joining this effort the link to the donation page will be on the SUBExcel page year round, and we appreciate everyone who donates in her honor.
DOL’s Reviewing Minimum Wage and Overtime Exemptions
ASA is proud to share that the Chapter Scholarship Fund has been renamed the Brianna Wright Memorial Scholarship Fund in honor of the late Brianna Wright, the beloved Executive Director of the ASA of Houston chapter. This decision was made by the ASA Executive Directors Council to honor Brianna's incredible 25 year career with the association, and the ED Council considered this the one of the most significant efforts they have recently brought to fruition. Brianna Wright's dedication to ASA and her contributions to the organization over her decades of service will never be forgotten. The renaming of the Scholarship Fund is an effort to keep her cherished memory alive for those who loved her most and miss her every day. The Brianna Wright Memorial Scholarship Fund helps chapters send participants from their local region to ASA National events in order to network, learn from their peers on a national level, and to help ensure that all ASA chapters are represented at national gatherings. Many of today's leaders in ASA attended their first SUBExcel with funds from this important effort, and those members continue to attend every year since after seeing the important impact that
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The Department of Labor’s Wage and Hour Division previously announced that it is reviewing the regulations that implement the Fair Labor Standard Act’s minimum wage and overtime exemptions for bona fide executive, administrative, and professional employees. In the last few months, DOL has held multiple listening sessions. DOL has announced additional virtual overtime listening sessions for May and June 2022 for both worker and employer stakeholders. These sessions are being organized by region. Sign up for these listening sessions. The agency seeks stakeholder input on issues such as: • the appropriate salary level above
which the exemptions for bona fide executive, administrative, or professional employees may apply;
• the costs and benefits of increasing
the salary level to employers and employees, including increasing wages and reducing litigation costs;
• the best methodology for updating
the salary level, and the appropriate frequency of updates; and
• whether other changes to the
overtime regulations are warranted.
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No Way to Cram in The Highlights— You Just Had to Be There by Mary Klett, ASA Communications Team Member There’s a valid reason for industry conferences. They work. Where else can you bring hundreds of people together with similar objectives and passions, yet come at these goals from a myriad of different paths and perspectives? The discussions, idea bantering, and “what ifs” are sometimes overwhelming. But then you get a moment to yourself to
think things over, write stuff down, and plans start to gel and take shape. Or maybe that doesn’t happen until you’re back home and can start to discuss ideas with your team and figure out what will or won’t work for you. Or you start to discuss details with that fellow you met, and realize how you both can help each other succeed in a big way. Or not. But it leads to new ideas,
thoughts, shake-ups. A break-up of the ordinary. After a two year break, SUBExcel last month was extra special. Here are a few takeaways: "It was so good to see all our old friends and meet some new ones at this year’s SUBExcel. After two years of not meeting in person, seeing everyone was a great morale booster.
2022-2023 ASA National Board of Directors after their oath of office pledge
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A Toast!! to the New Mexico attendees enjoying the SDLF Wine Tasting Fundraiser
the bipartisan infrastructure law last November, along with the discussions revolving COVID-19’s impact on the construction industry. There’s nothing like the enthusiasm felt by the SUBExcel attendees interacting with each other and with me. I look forward to next year’s event! " - Mike
I’ve been attending SUBExcel for the past 10 years and every year it gets better and better. The unity, knowledge and support we gain from the other Executive Directors is priceless. Mingling with industry professionals from across the country is an added bonus and the relationships you build can last a lifetime. The keynote speakers as well as the education topics were fantastic at this year’s event and I can’t wait to see what next year’s event will hold. I recommend everyone attend at least one SUBExcel and when you do, you’ll be hooked and attend year after year. Looking forward to SUBExcel 2023 in Ft. Worth Texas." - Gia Espinoza,
Oscar, Director of Government Relations
Executive Director, ASA-New Mexico
"The return of this year’s SUBExcel provided ASA membership the inperson opportunity to attend advocacy sessions, networking events, along with highlighting the importance of congressional interaction as it relates to public policy and contracting reforms. The conversations at SUBExcel took on a new tenor this year; especially with the passage of T H E
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"Our Attorneys’ Council and its associated Task Forces, covering Contract Documents, Government Relations and the SLDF, welcomed the opportunity to regroup for the first SUBExcel in two years. They came roaring back with many ideas for resources, presentations and webinars for the subcontractor community, so be on the lookout for more content coming your way! We were also grateful to the many who gathered and contributed at SUBExcel to raise more than $10,000 in funds for the Subcontractor Legal Defense Fund. Thank you for keeping this vital asset moving forward for subcontractor rights." - Shannon
The next SUBExcel is March 8-11, 2023 in Fort Worth, Texas. Mark your calendar now. You make it worth our while.
The Contractor’s Compass is recognizing excellence in ASA’s ranks. Every month we are highlighting the activities, achievements, and actions of ASA members that might inspire others. Do you have something you want to share? Send us an email at communications@asa-hq.com.
Oscar, Attorneys Council & Related Task Forces Director
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F E AT U R E The New Era of Subcontractor-Led Prequalification by Bespoke Metrics
With the increased adoption of prequalification technology supporting risk management, inefficiencies and inequalities are beginning to surface, particularly for subcontractors. This needs to be resolved by educating and empowering the subcontractor with digital tools that support their needs. Traditionally, prequalification has focused solely on the needs of general contractors, and has only become more so, with the increasing pressure from owners and insurers to implement stronger risk management standards, along with increased data requirements (environmental, sustainability, diversity, corporate governance) being implemented down the supply chain. The pressure to fulfill requirements intensifies during The Great Expiry,
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which occurs every April through June as the majority of prequalifications expire. With newly available financial data, a lack of standardization and the rise in volume creates the perfect storm of repetitive requests and the duplication of effort across the country. Due to the increased workloads and deadlines, the quality (accuracy, timeliness and completeness) of the data provided suffers. In response, some general contractors implement stronger enforcement strategies by tying it to bid invitations, awarded contracts or payment, further increasing inequalities and lack of control on the part of the subcontractor. Engaging the subcontractor can help resolve a number of these issues. A COMPASS survey found
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the top five items that would enhance the subcontractor prequalification experience: The most common feedback is the push to standardize requirements on a single platform. The reason for different requirements stems from a lack of direction and definition of prequalification. Each general contractor has taken it upon themselves to implement their version of prequalification, creating a fragmented process for the industry and ultimately passing on the data requirement burden to their subcontracting partners. Many organizations have tried and failed to bring the industry together due to the customization of the data requirements for each general contractor.
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Andrew of Compass Constructors - "If subcontractors could cut the number of prequalifications, we would be happy to take a little more time to complete a "prequel" that a large number of general contractors would accept." Another common concern among subcontractors is identifying strong partners as the financing and payment for project costs are often fronted by the subcontractor. Karin, ABC First Coast Chapter sees an opportunity for the prequalification to work in both ways: "Prequalification needs to be truly counterpart to ensure subcontractors are entering contracts with strong general contractors with good payment track record and contract terms." Standardization allows subcontractors to receive
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feedback and transparency on not only the contract sizes they are qualified to complete, but also the factors that influence their capacity and expertise to complete larger jobs to grow with their general contractor partners. Eli of Nexen Construction is taking one step further by using prequalification to market and promote themselves on why they're the best for the job. "We are constantly looking for ways to edge over our competition. Utilizing COMPASS is a great way to show our strength, sophistication and proactiveness to win more jobs." Michael, of Bespoke Metrics: "In today's data-centric world, subcontractors that provide their data in a "free" prequalification platform are doing themselves a disservice. They
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are no longer a partner or a customer. The subcontractor and their data are now the end product." Risk management and appropriate data usage through technology will continue to increase in importance, volume and requirement. Trade partners need to be proactive to learn and understand the technology out there to better support your business. Speak up and take control of your prequalification before it defines you, and this becomes the new normal.
About Bespoke Metrics COMPASS by Bespoke Metrics is a leading prequalification platform that supports data collection, verification and analytics across the entire construction supply chain. To learn more about Bespoke Metrics, visit https://compass.bespokemetrics. com/ or email info@compass-app. com to schedule a demo.
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As risk management becomes more prevalent, subcontractors are often forced to fill lengthy forms for a chance to win the project
COMPASS is the first tool built for subcontractors to efficiently and securely satisfy General Contractor prequalification requirements using one standard form (1Form), updated once a year. To support moving the industry to a universal qualification form, sign up for the petition below
https://forms.gle/CKoejWC7jCJowvPt9
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1-800-689-6819 info@compass-app.com O http://compass.bespokemetrics.com N T R A C T O R ’ S C O M P A S S
F E AT U R E Essential Construction KPIs to Improve Profits and Productivity by Grace Ellis, Autodesk
Why Construction Teams Should Be Tracking Way More Than Financials How do you measure project success? For many of us, it’s easy to see financials as a leading indicator of performance. Is it over or under budget? And by how much? As owners and project executives usually are looking at high-level metrics, it’s easy for teams to get driven purely by the money. In fact, 43% of construction firms prioritize immediate financial goals over organizational resilience. Nevertheless, there are a number of other essential construction KPIs that can signify if a project is on track and provide more actionable insights into what changes need to be made. Using budget as your primary indicator of performance is a lot like calculating the calories of a cake to assess its healthiness after it’s been baked. While it might be an interesting fact to know for your own interest and perhaps dietary concerns, it’s a little too late to make any changes needed to alter the outcome. On the
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other hand, if you were to measure and adjust the ingredients during the baking process, you could tweak results for a more desirable outcome (should healthy desserts be your thing). Clearly, pure financials should not be the main indicator of performance. So, why are they constantly the primary focus of project scrutiny? Other critical measurements need to be taken into account to track construction progress and productivity–the primary factors that are going to get teams that want success. Below, let’s discuss the importance of construction KPIs and critical metrics your company should be measuring to affect profits and productivity.
Key Takeaways • Construction teams need to track more than financials to determine a project’s success. • Using a budget as an indication of a project’s success may not give a team enough actionable insights about possible changes that need to be made.
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• Construction KPIs, or key performance indicators, produce a well-rounded look at a project to help companies build long-term resilience and to meet their short-term financial goals. • Tracking key KPIs like safety, quality, employees, and performance gives construction companies a better opportunity to analyze their performance. • Predictive KPIs may provide a look into future productivity and performance. • Standardizing KPI construction metrics ensures accurate input. Today, many companies do not integrate their applications, track quality KPI data, and monitor the life cycle of projects. However, standardizing the way software is used may correct this. • Using the Workflow Benchmarking Tool (a free tool) allows you to measure your company’s KPIs against other top construction companies.
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Construction KPIs: A Breakdown Tracking and carefully interpreting an array of key performance indicators (KPIs) helps a construction company build longterm resilience while also meeting shortterm financial goals. But just in case you need a refresher on the purpose KPIs serve, here is how the Construction Financial Management Association (CFMA) defines them. CFMA describes KPIs as being vital signs that show whether “your business is functioning according to plan.” It explains that the “key” part of the acronym indicates prioritized metrics. The “performance” aspect of the acronym refers to ways in which your company operates or behaves. Likening a construction business to an auto engine, CFMA stresses that engine analysis is based on more than miles per gallon. Similarly, although basic construction project metrics concern costs and time, profit isn’t the only performance issue to measure. As to the “I,” CFMA notes that indicators usually are quantitative data, such as numbers or percentages, that present a quick picture of a condition and its “favorable or non-favorable status.”
SAFETY A safer site incurs less risk and longterm costs. If issues do occur, they could set your project back both in time and money. Beyond that, safety incidents can mean higher insurance payments. Therefore, knowing and understanding your safety rating is key to reducing your costs and keeping your staff productive. Important construction safety KPIs include: • Safety/ incident rate
QUALITY Having a better understanding of the total quality of your projects will help reduce changes and rework. Therefore, keeping a thumb on quality metrics is a surefire way to keep on budget and schedule. The following construction KPIs will help your team maintain a high level of quality: • Number of defects • Number of defects due to workmanship • Time to rectify defects • Number of site inspections conducted • Ratio of the number of inspection passed to total number of inspection
Before all else, it’s vital to understand where your company currently stands when it comes to KPIs. Enter the Workflow Benchmarking Tool. This free tool allows you to see how you stack up against the top construction companies. In a few minutes, you can get an overview of your blind spots and identify processes that can help improve the way you record and use information to formulate a construction quality management plan with KPIs.
• Customer satisfaction
The Essential Construction KPIs Your Projects Need Although your company may measure many details of a project, effective performance analysis requires prioritizing a limited number of key categories of concern for tracking overall project success and company health. These would be both financial and non-financial matters that can be quantified. Here are types of data these KPIs might scrutinize:
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• Internal customer satisfaction
PERFORMANCE Performance metrics can provide a project’s productivity. By measuring and understanding just how time and efforts are being spent, teams can adjust and allocate additional resources or tools to the areas that need them the most to reach project goals. Here are a few KPIs related to construction performance: • Waste/recycling per job • Average revenue per hour worked • Percentage of equipment downtime • Percentage of labor downtime
EMPLOYEES While tracking your employees’ performance is crucial for a successful project, measuring their development and satisfaction are also critical for success.
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• Training completion percentage rate
A Note on Predictive KPIs
• Number of accidents per supplier
• Total cost of rework
• Worker satisfaction • Turnover rate
• Number of safety meetings/ communications
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Staff who are invested in and happy will be able to work more efficiently for the longterm and contribute more to the bottom line. Not to mention, employee turnover is a major expense and reducing this cost can save teams enormously. The following construction KPIs are vital to employee retention:
The issue of using KPIs as predictive measures is one raised by CFMA, which asserts that performance management should be more than a “rearview mirror” process of analyzing productivity based on historical financials. It suggests a number of ways that KPIs can provide a glimpse into future productivity. For example, instead of simply viewing financial performance based on past and current projects, CFMA suggests measuring bid development and setting expectations based on actions such as: (1) pending bids; (2) scheduling and completion of business development meetings; and (3) active proposals. A “subcontractor inventory” is another predictive performance indicator that CFMA recommends. It would be aimed at avoiding tying up cash in the overpurchase of construction materials. CFMA states that a KPI could be designed to predict buildups in unneeded inventory by comparing monthly spending for materials with what already exists. As to safety, it notes that aside from past figures concerning accident rates or “high number of days without lost work,” a KPI could predict performance based on quantification of planned events such as “the number of safety meetings, communications, notifications, or awards that recognize someone doing something safe.” Construction Dive magazine also discusses the issue of using KPIs predictively through an analysis of “lagging vs. leading indicators.” The magazine points to “cash flow and receivables” as “backward-looking” or lagging financial indicators. Leading indicators would be data showing the ongoing progress of a project in such a way that the information can
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lead to remediation of procedures or work before the construction schedule is badly affected. Talking about KPI analysis of company data–whether rear-view or forward-looking–the magazine states, “Measurements help bring standardization and repeatability to processes on a jobsite.” So, the quantification of KPIs helps construction companies more accurately predict costs and schedules for future projects. Learn more: Getting Started with Predictive Analytics in Construction
Implementation and Evaluation As already noted, successful implementation of construction KPIsrequires prioritization of top concerns and selection of appropriate technological support. Other important demands include:
• Standardizing reporting and measurement • Gaining support by involving key players • Incentivizing participation • Measuring progress • Evaluating the impact and making adaptations
STANDARDIZING REPORTING AND MEASUREMENT To get started implementing and evaluating construction KPIs, standards need to be set to ensure accurate input and use of the information. Standardizing construction measurements and processes is easier than ever these days due to digital transformation of our industry. This change encompasses cloud technologies that improve workflow by allowing real-time sharing of files from office to field and back again. What makes this immediate communication more powerful is the use of standardized workflow processes made possible by standardizing the construction planning software used within a company. Problems occur between the jobsite and front office when the general contractor, field team, designers, and project managers use varying kinds of software. In a Construction and Technology Report, JB Knowledge noted that 30%
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of companies they surveyed reported problems due to not being able to integrate the many applications they use. However, construction companies can achieve integration, track KPI data, and standardize the life cycle of projects by standardizing their own use of software. It helps to select a construction productivity product that is as easy for workers on jobsites to use as for managers in the home office. In fact, learning how to use construction software is a goal that fits well into a KPI for staff development. Companies can tie incentives to adaptation and reward employee teams for top performance. Staff buy-in also increases when employees who’ve become adept with the software become teachers for those who are new to it.
GAINING SUPPORT For adoption of KPIs to work, companies need to encourage all employees to understand and participate in the processes these performance tools encompass. To improve the speed and smoothness of implementation, it helps to provide up-front training for influential key staff–such as the general contractor and other field managers–who are willing to repeatedly demonstrate how and why KPIs are important. At the same time, these leaders need excellent software support, including virtual and on-site consulting. Everyone needs a hierarchy of support and the knowledge of whom to go to for help. INCENTIVIZING PARTICIPATION You might think that participation incentives in any industry would primarily be based on financially rewarding employees. However, a process of mentorship is one of the best motivators available. Key players train up other employees to become trainers themselves. This builds confidence and self-esteem. This principle of a cascade of empowerment works across a multitude of industries. As Inc. magazine indicates, when employers in any business provide effective training, they’re treating staff “in a way that will make them want to stick around.” Other popular incentives may involve awards and celebrations for meeting or surpassing KPIs. However, these incentives must be clearly connected to expected
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outcomes and be announced at the outset of implementation.
MEASURING PROGRESS Another opportunity for gaining buy-in from key employees is to assign key staff responsible for tracking and sharing measurement data company-wide. However, first provide training about how the company’s performance software measures and evaluates progress whether about money matters, quality or employee satisfaction. EVALUATING AND ADAPTING Be prepared for an ongoing team effort to improve KPIs so they will be as beneficial, relevant and up to date as possible. This means you need to build in time for discussion and adaptation including digital change. Digital transformation is also an ongoing process. This means both KPIs and new technology you embrace should be viewed from the same perspective. Neither can become static because that won’t improve productivity, profits or company health.
Go Beyond Financials With New Construction KPIs While keeping a watchful eye on financials is essential, adding new construction KPIs that relate to safety, quality, performance and staff are key to understanding your project’s full story. In time, this will allow for better control of costs and schedule and increase your company’s bottom line.
About the Author
Grace Ellis is the Editor in Chief of Digital Builder Blog at Autodesk. This article originally appeared in autodesk’s blog, Digital Builder on December 21, 2021.
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F E AT U R E How a Compelling Organizational Purpose Enhances Creativity by Mark Marone, Dale Carnegie Training In Start with Why, Simon Sinek points out that “Happy employees ensure happy customers. And happy customers ensure happy shareholders—in that order.” How do we inspire happy employees willing to look for new and better ways to make customers happy? Start by giving them something purposeful to work toward.
Importance of An Organizational Purpose In Motivating Employees An organizational purpose answers the question “Why do we do what we do?” A meta-analysis from the Harvard Business Review led them to declare unequivocally that “why we work determines how well we work.” And there are plenty of case studies to prove this. LEGO, Apple, Starbucks, and Schwab were all famously reinvigorated by their CEOs recommitting to the organizational purpose. In a McKinsey report, 82% of responding employees said it’s important to have a company purpose and 72% said that purpose should receive more weight in decision making than profit. That’s because organizational purpose is a great motivator for employees. Employees with strong intrinsic motivation are more engaged, take more initiative, and are more creative than their counterparts. More importantly, people’s innate creativity is more likely to become useful innovation when it is focused on achieving the organization’s purpose. The reasons for this become clear when we consider the journey a creative idea takes to become an innovation.
From Creativity to Innovation: How Organizational Purpose Affects the Idea Journey Not all creativity is useful in business. It can even become a distraction, if it isn’t focused on achieving the organization’s purpose more fully or in a faster, more efficient way. A potentially useful creative idea is born when an employee recognizes an opportunity. But it’s tough to get inspired by work that exists only to turn a profit. It’s a compelling organizational purpose that feeds people’s intrinsic motivation to come up with
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novel ideas and solutions that can become beneficial innovations. In the second phase of the Idea Journey, the creative idea is shared with others. This requires a high level of psychological safety where employees feel safe bringing up and responding to challenges to the new idea and suggestions for improving it. Nonetheless, there is always some level of risk in sharing a new idea with others, and viewing the idea as connected to something bigger (i.e. delivering on the purpose) gives people an incentive to take that risk. The organizational purpose at this stage also keeps feedback focused and people aligned as they shape the idea further. When the creative idea is ready to share more broadly with people who have the authority to give it the go-ahead, the organizational purpose is also important. An idea that is aligned with the company’s purpose naturally has an advantage in overcoming the inertia of the status quo. It makes it easier to express the idea’s relevance, show how it is aligned with priorities, and justify the allocation of resources. Finally, people must work together to turn a creative idea into an innovation. During the implementation phase, seeing the connection between the new process, practice, product or service and the organizational purpose engages employees, increasing the likelihood they will put forth their best efforts.
Why Do We Need to Write Down Our Organizational Purpose? A written-out purpose is the first step in communicating the organizational purpose and inspiring intrinsic motivation within employees. Leaders at every level of the organization are key to bringing the purpose to life by consistently incorporating it into their communication and by clearly connecting people’s tasks to achieving that purpose. They can’t do that if they aren’t completely clear on exactly what the purpose is.
Crafting a Purpose that Promotes Creativity in the Workplace A great way to start is to involve employees T H E
directly, even if you think that everyone in your organization already understands the purpose. In fact, one way to test that hypothesis is to simply ask people to write down what they think the organizational purpose is. You may be surprised at the variation in responses. You can also start by asking workers at all levels what they find meaningful in their work. Together, also try answering some of the following questions: • Why does the company exist – what problem does it solve for people? • Who are we helping by doing it? • Why does it matter? • What values does the company and/or
its founders believe in?
As you gather responses, the organizational purpose should begin to emerge. With the “what” and “why” clear, employees will be inspired to find better answers to the question of “how” – using their creativity to drive the innovation that can help organizations achieve and sustain success. About the Editor Robert Graves, MBA, is a Dale Carnegie Certified Trainer for Rick Gallegos and Associates. His focus is Relationship Sales and Customer Service. He is the author of “Making More Money with Technology.” He often speaks on the evolution of Marketing, Sales, and Service. Robert can be reached at robert.graves@dalecarnegie.com or call/ text 813-966-3058.
About Dale Carnegie Dale Carnegie is a global training and development organization specializing in leadership, communication, human relations, and sales training solutions. More than 9 million people around the world have graduated from Dale Carnegie training since it was founded in 1912. Dale Carnegie Training can help an organization build effective interpersonal skills that generate the positive emotions essential to a productive work environment and that lead to increased employee engagement.
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F E AT U R E How To Stop Buying Into Projects With Your Own Money by Duane Craig, Writer When you first saw the project, you thought the scope was too optimistic for the budget. But, you wanted to work with the owner, so you let the optimism take over. You started doubting your best estimate and began gradually convincing yourself it was probably too high. You signed the contract, but now, a few months into the work, you find yourself buying into the project with your own money. The money you’re losing on work that should have cost more. While it might be too late for this project, here are some strategies to keep it from happening again.
With client expectations set, go to work on the best estimate you’ve ever done. Factor the variables, account for unknowns, test the work breakdown, confirm your costs, and verify the methods. While you’re at it, try to line up alternate sources for specialized components and equipment. Finally, test your subcontractor bids against the proposed scope to confirm they are realistic and complementary to the overall project budget. Then, put on your pessimistic hat, and ask yourself what could possibly go wrong. Adjust the estimate accordingly.
Stay Pessimistically Realistic
Stand Firm
Optimism sinks more projects than anybody wants to admit. There is a place for realistic optimism, but only if it’s tempered by realistic pessimism. To understand why you should be pessimistic about any project, just consider the risks. You can’t control the weather. You can’t control the local zoning or approval authorities. You can’t control the material sources. You can’t even really control the labor force you’ve got. So why be exuberantly optimistic about finishing on time or coming in under budget? But, with a realistically pessimistic outlook, you can see the risks clearly. This allows you to plan for them or mitigate them. That can get you to realistic optimism. That’s the best place to be when talking with a potential client, when estimating, and when imagining a schedule.
Be Very Thorough in Your Estimating Don’t give “best guess” estimates, or put it in writing that the estimate is only preliminary and state clearly that it will definitely change. Don’t say “may change.” Say it will definitely change. While starting out wishy-washy might get you the contract, it also sets the tone for the rest of the project, signaling to the potential client that you are flexible on everything.
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Once you have a well-defined scope, an estimate you’re confident about, and a signed contract, resist changing the scope or price without a change order or a contract change. Some clients see the budget as just a starting point, hoping for it to get lower as you get more invested. But you’re already deeply invested at this stage. Some clients talk about doing some of the work themselves or hiring others to do it while chipping away at your portion of the scope. If you go along and adjust your price, you’re in for a rough ride. This is simply changing the contract terms without actually changing the contract. Remember that clients can also grow to expect favors. Make sure your team knows where the contract ends and favors begin. If your sub, a crew leader, or a super starts doing favors for the client, that’s the same thing as scope creep, but you’re paying for it. Your team should know the rules of engagement so when a client goes behind your back, they can politely ask them to check with you or whoever you have in charge.
Don’t Over Promise It might make the potential client’s eyes light up when you promise them to hit their unrealistic deadline, but it’s a
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foolhardy move on your part. Instead, it’s much better to work with them to adjust the scope or the deadline so the promises you make are promises you can keep.
Don’t Under Deliver It might be tempting to cut corners once you see you’re investing your own money in the project. However, new problems show up in rework or warranty issues later on. A well-worn phrase is quite accurate: If you don’t have time to get it right the first time, where will you find the time to get it right later? Using change orders to make up for poor management or sub-quality work creates a double-edged sword. This approach will eventually have you fighting with the client over every change, and when the project’s over, your reputation will take a hit. You’re better off figuring out creative ways to deliver what the client wants without sacrificing quality. Can you get more efficient by adopting new or different technology? Can you improve the mix of labor so your highestpaid employees can reach maximum productivity? Can you use a different type of equipment to speed up work or to allow moving workers to better-suited jobs? Can you convince the owner to make a scope change that provides equal or better benefits while saving you cost? There are many ways to lose money on projects. When you eliminate inadvertent investments of your own money, you open the door to better profitability. About the Author Following roles as photojournalist, education director, landscaper and residential project manager/ superintendent, Duane Craig moved to writing for a less stressful life. For the past 14 years Duane has covered the construction, food, finance and tech industries. This article originally appeared on Procore’s blog, on Mar 6, 2022.
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“We’ve reduced rework by up to 15%.” Tim Anderson CEO, Anderson Mechanical
No one can predict the future, but Procore and the American Subcontractors Association (ASA) have partnered to do everything we can to help you prepare for it. From keeping your workforce productive to staying on top of job costs—we have everything you need to manage your projects in one place. Learn more about special resources and pricing for ASA members now. procore.com/asa
F E AT U R E Lowering DSO: Best Practices to Get Invoices Paid Faster by Patrick Hogan, Handle.com In construction, finance and credit managers know how crucial it is to keep a pulse on their DSO. Daily Sales Outstanding or DSO is a critical metric that provides a snapshot of how long it takes to collect on credit sale invoices. A higher DSO means significant work needs to be done to get invoices paid faster. A low DSO can indicate a healthy clientele that pays on time but can also indicate conservative selling and the prospect of extending more generous credit terms to increase sales. DSO is typically measured regularly – monthly, quarterly, and annually. The DSO for a definite period is calculated using this simple formula:
issues and where most sales are on credit, getting invoices paid faster is ideal.
Strategies to Lower DSO Improve customer experience Getting invoices paid faster requires a multi-pronged approach. One primary strategy you must consider is improving the overall customer experience around payments. Delivering a great experience to customers doesn’t end with product and services. For payments, there are several ways to ensure that the process is as seamless as possible for customers.
Accounts Receivable balance/Credit sales x Number of days in the period = DSO
• Accounts receivable balance is the total dollar amount of outstanding invoices, including overdue accounts • Credit sales is the total dollar amount of unpaid sales For example, the DSO for a particular month for a company with $40 million in collectible invoices at the time of computation and $20 million in credit sales for the entire month is 60 days. Lowering DSO is always a goal for many credit departments in construction businesses. Industrywide DSOs in construction are reported to be around 60 days on average compared to 45 days for various business sectors in the United States. In an industry rife with payment
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Providing preferred payment methods Ensure that you know what payment methods your customers prefer. In the past, most construction transactions were made through cash, checks, or wire transfers. These days, more and more buyers prefer to pay via digital channels. They may also want to have a way to pay directly from the electronic invoices you send. Credit cards remain popular, and there are many ways to integrate credit card payments with digital invoicing and billing. Regular billing and invoicing To stay top of mind of your customers’ accounts payable teams, it’s best to ensure regular invoicing and billing. This allows your customer
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to make timely payments and not have invoices stacked together for each payment cycle. Disputes and discrepancies can also be discovered earlier when invoices are sent regularly. Itemized invoices and statement Ensure that your invoices have all the information customers might need to process payments. Some customers will have their own A/P software that will require specific data to process payments–it’s best if your team finds out about these details early on. Inquiring about their invoicing preferences at the beginning of the customer relationship is a best practice. Incentivize early payments In construction, late payments are almost the norm. Most customers are used to getting slapped with late payment penalties, and some may have even incorporated these fees into their internal budgets to hold on to cash for longer. However, late payment penalties carry a negative signal for customers. Incentives have the same function but are seen as a positive signal. Late payments cost money, and it’s better if you’re able to get paid earlier and avoid the added work of chasing invoices while also giving customers a great experience.
Strengthen your credit approval process Vetting new customers and prospects Lowering DSO is not all about chasing payments--it begins with ensuring that your clients are of good financial standing and can pay. Vetting new customers and prospects,
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especially for larger projects on credit, can save you a lot of resources–in time, personnel, and money–in the longer run. Looking into credit records and if they have liens on the projects they’ve worked on can help you paint a complete picture of prospects’ and customers’ financial positions. For bigger projects, it’s not unusual to request a copy of financial reports that can prove they are creditworthy. Regularly updating credit files for all customers Financial positions for businesses change, so credit reviews for your customers must be done regularly and not only once at the beginning of the relationship. If their situation has changed, you can adjust accordingly per your internal credit policy. This allows you not to overextend credit and strategize around how to keep payments updated. Following credit policy Your credit policy should be the chief guide in navigating collections for credit sales. Ensure that your sales teams are adhering to the credit limits set for customers based on the criteria on your policy. Ensure that the collections process is being followed. For any overrides and special cases, it’s best to keep everyone on the same page and update your credit policy if needed. Ultimately, your credit policy is your primary tool for minimizing credit risk and promoting timely payments for a lower DSO. Completing credit applications for all customers In order to apply your credit policy well, getting as much needed information as possible is vital. Credit applications at the beginning of client relationships are paramount to ensuring that you have the records to reference as you make credit and collections decisions related to a customer. Handshake deals are not unusual in construction. However, that doesn’t mean that you have to
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skip over protocol, which can cost you significantly, especially as contract sizes increase. Firing customers Sometimes, the relationship between you and your client is just not working out. Their capacity to pay or internal payment protocols are costing you resources. There, of course, is a sting whenever you end a relationship with a customer, but in the end, it’s business. Making difficult decisions for the company’s best is what will pay off in the longer run. Protecting your payment rights Payments have always been a sore point in construction, and as a response, specific laws were created to protect all parties in a construction project in case of payment issues. Mechanics liens are one of the best tools in your payment arsenal that could come in handy if you need to recover payments from non-paying customers. They also help promote timely payments as customers are well aware of the risks of non-payment. However, mechanics liens come with responsibilities. There are preliminary notices that you must serve for many states to ensure that you preserve your lien rights. In many
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cases, failure to serve a preliminary notice or serving an inaccurate one can invalidate your lien, and you only find out when it’s time to enforce that lien. Using lien services that ensure the accuracy of the information included in preliminary notices and that notices are delivered on time and in line with delivery methods required by law is a great way to protect your rights and save time and money. Lowering DSO is a companywide effort that credit departments can spearhead. By promoting smart business practices in your company, you can get invoices paid faster while keeping customers happy. About the Author: Patrick Hogan is the CEO of Handle.com, where they build software that helps contractors, subcontractors, and material suppliers with late payments. Handle.com also provides funding for construction businesses in the form of invoice factoring, material supply trade credit, and mechanics lien purchasing.
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F E AT U R E Realism in Job Cost Integrity
Why some projects appear to be winning when they lose at the end by Gregg Schoppman, FMI The vicious job loop. An endless cycle of misrepresentations, mistruths, and fake news. There are so many things that can go wrong in job cost reporting, and the interesting thing is that most of the issues lie NOT in information technology but human psychology. Sure, there was a time where there was not a great, seamless system of real time feedback, allowing construction organizations to make project course corrections. However, most of the systems on the market today provide timely data to make better decisions earlier in any project. If there are adequate systems for just about every type of contractor, why do projects routinely go over budget in most direct cost categories? The diagram below illustrates the common occurrence adversely
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impacting the job reporting cycle. The most obvious disconnect is the lack of clarity and collaboration that so many organizations fail to capture. Whether it is an outright snub or simply an oversight, too many organizations bid projects without realistic feedback from the field. The field then proceeds to build with a distrust of the “numbers” giving little credence to the budget set forth. It isn’t until the end of the project that the score of the game can be actualized and even both the office and field can hardly explain how the proverbial sausage was made. As an operations leader, it is critically important to examine the root causes of these behaviors to not only leverage their technological platforms but also drive superior operational performance.
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“Filling the Buckets” Consider a firm with only three cost codes. A drywall contractor with codes “Framing”, “Hang Drywall” and “Finish Drywall”. Or a civil contractor with codes “Clear and Grub”, “Rough Grading” and “Finish Grading”. Three linear codes that in essence capture the hours associated with each phase of a project – beginning, middle and end. However, how often does an organization believe they underperform in that third code when they really operate poorly in the first code? Examine the root cause – the field leader is overrunning that first code’s labor budget. Rather than run over, time is charged errantly to the second code. Subsequently, the same thing happens again, until that third code is utilized. However, there
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is no fourth labor code, resulting in a distorted overage. The primary reasons for even considering the initial overrun comes down to misguided optimism (“I’ll make it up in the end…”), ego (“Not on my watch…”) and fear (“The last time I went over, I got chewed out by my boss…”). Ego may be tough to predict, but operational leadership cannot exacerbate this problem by chastisement. There is a difference between asking “Why did we go over?” and “WHY DID YOU GO OVER AGAIN?” The overage may have been an estimating error or site condition but if the answer is always viewed as a “field problem”, the root cause may never appear.
Course Corrections Imagine playing a basketball game in which the scoreboard was broken. Two teams play a game without knowing the score. The only feedback they receive is at halftime or at the end of the game. As far fetched as this sounds, how often does the field receive feedback on their performance? At the end of the project? Much of the software today can provide real time labor feedback yet the field never hears about how a job is performing. If they do hear, it is normally long after corrective action can be made. The important questions to ponder are as follows: • Is the forecasting and cost
feedback process iterative and collaborative?
• Does the field leader have to
actively “get on the system” to learn the score or is there an interactive process that brings the office and field together to review?
• How often does the project team
actively manage the costs and bring them into prime focus? It is hard to turn a ship that has run aground. In the same way, a project that fails probably had good indicator lights to provide predictivity. However, if no one is using the data to manage the project or believes the data is
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inherently in error, there are deeper, more insidious factors at play.
Change Order Management Hearing from a project team “Oh, that code has a change order attached to it…” is a little like hearing “Well, the check is in the mail.” First, it is hard to gauge performance in the short term if there is an asterisk of a change order buffering realism. Secondly, how hard is it to trust the information you are seeing if you are the field leader? Am I really behind, or am I ahead, or will I be behind later, etc.? There is not an easy solution for change order manager relative to job cost feedback. However there are a few words to the wise: • If this is truly a change order – one
that is either expected or possibly subject to debate – inform the field that they are to charge time to a different code altogether.
• Additionally, even if the change
order is under debate or contention, adjust the budget. While this sounds like heresy, if the organization has committed to doing the work– without an approved change order – there is a budget. Collections are a different thing entirely and while there may
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be no applicable revenue to offset, the field needs to see realism in production rates and budgets. A business decision to proceed with work on a change order that may make the firm zero profit should not distort the field’s production budget. • Lastly, one solution would be timely
processing and collection of all change orders. In the event that this is not an options, refer to #1-2… Job cost feedback should be timely, realistic, collaborative, and functional. The tools are available to do this correctly. The scoreboards are fully operational, and it is important to recognize the most likely impediments to accuracy and timeliness are rooted in bad behaviors. About the Author FMI is the largest provider of management consulting, investment banking, and research to the engineering and construction industry. FMI works in all segments of the industry providing clients with valueadded business solutions. For more information visit www.fmicorp.com or contact gschoppman@fmicorp.com.
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F E AT U R E Numbers, Costing, KPIs — Oh My! by Jack Rubinger, Freelance Journalist Some construction firms are embracing key performance indicators (KPIs) beyond traditional financial metrics to develop a keener understanding of their projects, trends, and margin-eroding issues. Unfortunately, KPIs don’t always paint an accurate picture, according to Wally Adamchik of Construction Leadership. “Most are not using KPIs or THINK they are using KPIs when they are really using the same metrics they have been for years, but now are paying more attention to them,” said Adamchik. “Those precious few that are using KPIs with success take the deeper view that KPIs call for looking at the business with a much finer view, and gaining insights and intelligence that enables them to act/react more quickly. One of the KPIs we discuss on the people-side is bench strength. There are a few ways to measure that but it helps focus on retention and development,” he said. Smaller companies may sidestep this process completely. “We don’t track anything before or after a project. We bake in 40% profit on top of all hard & soft costs, bid it and build it. No tracking, no spreadsheets, no pre or post analysis,” said Steve White, Senior Estimator at Milestone Construction, LLC. Construction manager Bruce Roy is also skeptical about the estimation process. Roy believes that forecasting in today’s market would require a crystal ball and wand! Vernon Nielson, Collaborative Construction Solutions, LLC, thinks that if a company has eroding margins then they are not paying 24
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attention to performance indicators and trends. “We look at the market and understand that there are severe material shortages, unworkable delivery times and a mass shortage of the workforce and to make matters worse, subcontractors know that they are a rare commodity these days and are charging a premium for their work. We have even seen subcontractors attempt to get double and triple what they should,” said Nielson. Nielson recommends choosing projects that have shorter durations. “Long duration projects require material orders to be spread out over a long duration allowing for inflated prices, material price increases and unforeseen shortages. We choose smaller short duration projects that we can order all the material within the first month controlling the costs to our budget, get them on site and then billed out. We also choose projects that have limited exposure to specialty subcontractors, complex construction and unique materials. All of these will put you at risk to things that you can’t control,” he said. Michael Knight, President of Exponential Technology Group and SVP Corporate Business Development at TTI, Inc. believes in the power of technology. “Regardless of the type of project being quoted, the process often isn't fully (or even partially) digitized. By that I mean all the sources of input aren't connected digitally so that real time pricing, availability and scheduling information can be integrated across the entire project to build a quote and project schedule,” he said. T H E
“There are lots of reasons for this deficiency, and lots of negative connotations... low transparency, low sensitivity to cost and logistic changes, dependence on continuity of the people in the process,” he added. Years ago, there was a video of a home building contest in which the winner went from bare dirt to certificate-of-occupancy ready structure in less than 10 hours... and this was pre-digital when all planning was done in analog. The message of course was the better the planning, the better, more efficient the outcome. In the digital age, this should be the norm... but it is not. Effective estimating is not an easy job. There are so many unforeseen things that may occur, but it’s imperative to work with experts either internally or externally to help with this process. The American Society of Estimators (ASPE) is a great place to start when you’re seeking project estimation expertise. They have resources for education, certification, and standards.
About the Author Jack Rubinger is a freelance writer, as well as a social media specialist in the healthcare, workplace safety, transportation, and technology arenas. Jack is moving on to other ventures, and will not be able to be a regular contributor to The Contractor’s Compass. We wish him all the best in his future endeavors.
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2022 Webinar Series (Part 1) "HR Essentials" ASA is excited to announce that members can get a 15% discount on SESCO's upcoming webinar series! SESCO Management Consultants is ASA's Human Resource experts and are one of the incredible member benefits available through the ASAdvantage program. Just use the promo code we’ve been sending to members in your ASAToday and Hammer & Nails newsletters when you register for the webinar to receive the discount!
May 11: Navigating the Complexities of Wage and Hour Law The Fair Labor Standards Act (FLSA), the federal wage and hour continues to cause big headaches for employers given the intricacies of exemptions, pay plans and state permissible pay practices. Non-compliance exposes companies to individual and other representative actions. Wage and hour laws continue to multiply, with new regulations, court decisions, and myriad changes to existing laws impacting employer compliance obligations. The webinar will cover the rules for classifying employees as exempt or nonexempt and address other common wage and hour pitfalls. Participants will learn how to avoid mistakes in paycheck deductions, how to avoid problems with meal and rest break laws, and will provide a refresher on the newly revised federal overtime rule. For experienced human resources professionals, this session will be a practical “refresher.” For less experienced human resources professionals, this webinar will introduce real-world advice regarding wage and hour essentials. To learn about what your organization needs to do to stay in compliance and out of court, join us for an overview of the legal requirements and best practices of federal wage and hour law.
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May 25: Management’s Role in Recognizing & Preventing Harassment and Discrimination in the Workplace Harassment is rampant and it happens daily in our workplace. Whether it’s Hollywood, politics, academia or business, you cannot escape the reports of misconduct in the workplace. With heightened awareness, employers must do what they are required by law and in their power to prevent harassment in the workplace. This session will explore the true definition of harassment and discrimination under Equal Employment Opportunity regulations, such as Title VII of the Civil Rights Act, and the problems caused by inappropriate workplace behavior. Additionally, we will focus on preventing sexual harassment and discrimination, how to respond to harassment or discrimination, how to address unwelcome behaviors, the negative impacts of workplace misconduct, proper procedures for reporting and investigating complaints and consequences of false accusations. Last, we will cover how leadership should properly handle and respond to charges of discrimination received from the Equal Employment Opportunity Commission.
June 8 – Understanding the Ins and Outs of Medical Leave of Absences As experts in employment law compliance, SESCO will explore the practical application of crucial federal regulations such as the Americans with Disabilities Act and the Family Medical Leave Act. Further, we will delve into these pertinent and complex regulations to give participants a fundamental understanding on how to navigate and apply these regulations compliantly within their organization.
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This session focuses on the intent and purpose behind ADAAA and FMLA and will cover the basic interpretations and practical applications of the law. Additionally, we will discuss and demonstrate how to reduce liability by avoiding common compliance mistakes. Participants will learn how to properly engage in the interactive Reasonable Accommodation process for ADAAA and effectively manage FMLA leave for eligible employees. Key take-aways include: • Understand the basic requirements of ADAAA and FMLA regulations and the impact to the organization. • Explore the most common violations and how to avoid them. • Recognize whom and when to apply the ADAAA and FMLA regulations and supporting documentation. • Assist employees in handling accommodation and leave appropriately to protect yourself and the company from liability.
June 22: Essential Skills of Leadership Leaders (managers and supervisors) are normally chosen for their positions because of their knowledge about the products and services they provide to their customers. All too often, however, their training has covered only the technical aspects of their duties, neglecting the people related skills which are extremely important in ensuring a successful organization. The Essential Skills of Leadership session will give you the four foundational skills for effective leadership: focusing on behaviors and facts (not attitudes or opinions), encouraging team member participation, maintaining team member self-esteem, and running effective meetings.
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Special pricing for ASA members
Upcoming Webinars WEDNESDAY, APR 27, 2022 | 12:00 – 1:00 PM (EDT) Unlocking the Benefits of ASA Membership: A primer for new members, a refresher for the rest of us Learn about the benefits you may not know about in your ASA National Organization membership. Whether you just joined last month, or you joined ten years ago, this easy-going session will show you what is available to you and how to access it. Presented by: Matthew Levine and Mike Oscar Register today.
TUESDAY, MAY 10, 2022 | 12:00 – 1:00 PM (EDT) Unlocking the Benefits of ASA Membership: A primer for new members, a refresher for the rest of us Did you know that owners of construction projects pay a premium of 20% according to an industry study. Even during the pandemic ConsensusDocs contracts, which ASA actively participates and supports, have continued to innovate to help improve your business results. This webinar will provide you some of the top issues that you should look for in all your contracts as well as some new trends that need to be addressed contractually to help protect your business and help it thrive. You will learn: How ConsensusDocs standard construction contracts, and specifically the ConsensusDocs 750 Standard Subcontract differs from “original” subcontracts as well as the AIA A401 Subcontract Learn how to spot some of the most important provisions in your contract and strategies for negotiating them. Learn how you can benefit from the latest trends in the industry such as prefabrication and design-assist and how ConsensusDocs has published off-the-shelf contract standards that solves how to address these issues contractually. Presented By: Brian Perlberg, Esq. CM-Lean Executive Director and Senior Counsel for ConsensusDocs; Senior Counsel to AGC of America Brian Perlberg serves as the Executive Director & Senior Counsel for ConsensusDocs, a coalition of 40 leading construction organizations. He also serves as AGC’s in-house attorney for construction law and contract matters.
Coming Up in the May 2022 issue of FASA’s
THEME
Bidding to Win: Sales & Marketing • Those Filthy Animals • Conditioning Your Bid to Create Better Leverage to Negotiate Favorable Subcontract Terms • Contractor's MBE/WBE/ SBE certification
Look for your issue in May. To access past issues of The Contractor’s Compass, please click here. For questions about subscribing, please contact: communications@asa-hq.com
Mr. Perlberg serves on the ABA Forum on the Construction Law Steering Committee for the Contract Documents; Executive Committee for the Arbitration Association of America (AAA) National Dispute Resolution Committee, and the Board for Construction SuperConference. He was recently recognized as a top legal voice by ENR magazine and recognized by Whose Who Legal for Construction. He is on the only construction attorney to achieve a CM-Lean credential. Previously, Mr. Perlberg served as General Counsel at the Design-Build Institute of America (DBIA). Register today.
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ASAdvantage 2020-2021 Program
