The Contractor's Compass April 2016 by American Subcontractors Association

THE

ASA’s

THE OFFICIAL EDUCATIONAL JOURNAL OF THE AMERICAN SUBCONTRACTORS ASSOCIATION

WWW.ASAONLINE.COM

The Pieper Houston Story: Defining The Company’s Legacy Exit Planning— Is it Time? Corporate Strategy from a Concrete Superintendent Point of View Leveraging the Service of Service Contractors Strategic Marketing That Works—Would You Buy Your Own Services? Legally Speaking: Business Resources Disappearing Before Your Eyes

APRIL 2016

Defining Your Company’s Legacy

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THE

ASA’s

April 2016

Features

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. The journal is designed to equip construction subcontractors with the ideas, tools and tactics they need to thrive.

The Pieper Houston Story: ....................................................... 7 Defining The Company’s Legacy by Stephane McShane

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).

Exit Planning—Is it Time?....................................................... 10

EDITORIAL STAFF Editor-in-Chief, Marc Ramsey

Corporate Strategy from a Concrete ...................................... 12 Superintendent Point of View

by Gregory Caruso, Esq.

MISSION FASA was established in 1987 as a 501(c)(3) taxexempt 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. FASA provides subcontractors and specialty trade contractors with the tools, techniques, practices, attitude and confidence they need to thrive and excel in the construction industry. FASA BOARD OF DIRECTORS Richard Wanner, President Letitia Haley Barker, Secretary-Treasurer Brian Johnson Robert Abney Anne Bigane Wilson, PE, CPC SUBSCRIPTIONS The Contractor’s Compass is a free monthly publication for ASA members and nonmembers. Subscribe online at www.contractorsknowledgedepot.com.

by Gregory Caruso, Esq.

Leveraging the Service of Service Contractors....................... 14 by Gregg Schoppman

Strategic Marketing That Works— ........................................ 16 Would You Buy Your Own Services? by Gregg Schoppman

Departments CONTRACTOR COMMUNITY............................................................ 4

ADVERTISING Interested in advertising? Contact Tony Kozak at (716) 844-8174 or advertising@asa-hq.com. EDITORIAL SUBMISSIONS Contributing authors are encouraged to submit a brief abstract of their article idea before providing a fulllength 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.

LEGALLY SPEAKING.......................................................................... 18 by Patrick C. Barthet

Quick Reference

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.

ASA/FASA CALENDAR..................................................................... 20 COMING UP....................................................................................... 20

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Contractor Community

April 12 ASA Webinar Examines Construction Industry’s ‘Payment Dance’

Protect Your Payment Rights on P3s, Nelson Tells ASA Greater Kansas City Chapter

More than 200 years ago, Thomas Jefferson invented the mechanic’s lien right and therein established the right of construction suppliers and subcontractors to get paid as a bedrock principle of the nation. “Ever since then, there has been tension between the top and bottom of the chain about payment timing, rights, and abuses,” said Scott Wolfe Jr., zlien, New Orleans, La., who will present the April 12 ASA webinar “The Payment Dance in the Construction Industry.” “GCs and owners fear subcontractor default and double-payment. Subcontractors and suppliers fear non-payment and payment abuses.” This webinar will examine: • Public policy reasons and background behind lien and bond claims laws. • Rights that can be leveraged to mitigate the risk of non-payment or payment abuses. • Tools and rights available to mitigate subcontractor default and lien exposure. • How industry predators abuse payment processes to unfairly leverage against other participants. How to get positive results with fair and ethical practices. This live, 90-minute webinar will begin at 12:00 p.m. Eastern time / 9:00 a.m. Pacific time. The registration fee is $99 for members and $179 for nonmembers and allows access with one Internet connection. Project the webinar onto a screen or wall and listen to it on a speakerphone for a group training event. After the program, registrants will receive a link to a recording of the webinar, and an ASA Certificate of Completion that can be downloaded and printed for each person who watched. Register online.

“Subcontractors and suppliers at all tiers must be particularly vigilant to protect their payment rights on projects delivered through a publicprivate partnership arrangement,” ASA Chief Advocacy Officer E. Colette Nelson told members of the ASAGreater Kansas City Chapter on March 10. A P3 is a contractual agreement between a public entity and a private partner in which the private partner invests its own assets and delivers a public facility or service in exchange for compensation. Because most construction projects financed by P3s are on public property, mechanic’s lien rights available for payment protection on private construction are foreclosed and the prime contractor may not provide a payment bond unless required in the state authorizing law the P3 or in the government’s contract with the private entity, generally known as the concessionaire.

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The Kansas legislature is considering a bill (SB475) that would require a prime contractor on a public-private partnership to provide a performance and payment bond. In the meantime, Nelson said, construction subcontractors and suppliers on P3 projects in the state should take steps to protect their payment rights: • Evaluate the financial soundness of the concessionaire and the prime contractor on a P3 project. • Determine whether the prime contractor has provided a payment bond. • Determine whether another contractor in the tiers above you has provided a payment bond.

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• If no surety bond is in place,

determine whether any other subcontractor/payment assurances (e.g., letter of credit, parental guarantee) are in place. • Obtain a copy of any payment bond provided by the prime contractor or other contractor higher in the tiers and/or details on the structure and claims procedures of any alternative payment assurance. • Verify the authenticity of the bond. The Surety & Fidelity Association of America’s Bond Obligee Guide contains a list of surety companies that have volunteered to be included on this list along with information as to how they can be contacted for the purposes of authenticating a bond. Subcontractors and suppliers also can determine if a surety is admitted in the jurisdiction of the project by checking with the state insurance department; the National Association of Insurance Commissioners’ Web site has an interactive map that links to each state’s department. The Department of Treasury’s Circular 570, commonly known as the Treasury List or T-List, contains a list of approved sureties for federal projects. • Read the payment bond and determine if it meets your needs. Are you covered? Is the bond for a sufficient amount? Can you meet notice and claims requirements? Are there any other terms that would make it difficult or impossible to meet claims requirements? • If the concessionaire or prime contractor has provided other payment assurances in lieu of a or in addition to a payment bond, such as a letter of credit or a parental guarantee, determine whether it meets your payment assurance needs and whether you can meet notice and claims requirements, etc.

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• Determine if the state’s prompt

payment laws apply to the project and, if so, whether they provide adequate protection. It is unlikely that a state law governing prompt payment on public work will apply. However, in many states, the prompt payment law governing private work may.

the methods of filing the annual report on veterans’ employment covered by the new form. The new rule applies to solicitations and contracts awarded on or after Feb. 26 and to modifications on or after the effective date to existing contracts, if the contracts are otherwise being modified.

New EEO Forms for Corporate Contractor Reporting Vets Effective on Integrity Information to Feb. 26 Be Included in Federal Federal contractors and Database subcontractors must use new forms to report veteran participation in their workforces effective Feb. 26. The amendment to the Federal Acquisition Regulation implements through contracts and subcontracts a rule issued by the Department of Labor in September 2014, dealing with reporting requirements under the Vietnam Era Veterans’ Readjustment Assistance Act and the Jobs for Veterans Act. VEVRAA requires federal contractors and subcontractors to annually report on the total number of their employees who belong to the categories of veterans protected under VEVRAA and the total number of those protected veterans who were hired during the period covered by the report. One of the main purposes of the DOL rule was to revise the reporting requirement applicable to government contracts and subcontracts over the simplified acquisition threshold by changing the manner in which federal contractors report on their employment of veterans. DOL’s final rule also changed the name of the annual report required under those regulations to the Federal Contractor Veterans’ Employment Report VETS-4212. In addition, the FAR rule incorporates the revisions to certain definitions, the text of the reporting requirements clause included in the government contracts and subcontracts, and

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Effective April 6, federal contracting officers will have access to increased information about the owner and subsidiaries of offerors on federal contracts. The new rule, issued on March 6 by the Federal Acquisition Regulatory Council, is required by an amendment o the National Defense Authorization Act of Fiscal Year 2013. That provision required new information to be included in the Federal Awardee Performance and Integrity Information System. The new information must include, to the extent practicable, the identification of any immediate owner or subsidiary, and all predecessors of an offer that held a federal contract or grant within the last three years. The objective is to provide a more comprehensive understanding of the performance and integrity of a corporation before awarding it a federal contract.

OSHA Third Annual Safety Stand-Down to Highlight Fall Protection

OSHA, the National Institute for Occupational Safety and Health and the Center for Construction Research and Training are leading the effort to encourage employers to pause during their workday for topic discussions, demonstrations and training on how to recognize hazards and prevent falls. “Falls still kill far too many construction workers,” said Dr. David Michaels, assistant secretary of labor for occupational safety and health. “While we regularly work with employers, industry groups and worker organizations on preventing falls and saving lives, the National Safety Stand-Down encourages all employers—from small businesses to large companies operating at many job sites—to be part of our effort to ensure every worker makes it to the end of their shift safely.” The National Safety Stand-Down in 2016 is part of OSHA’s ongoing Fall Prevention Campaign. Begun in 2012, the campaign provides employers with lifesaving information and educational materials on how to take steps to prevent falls, provide the right equipment for their workers, and train all employees in the proper use of that equipment. To learn how to partner with OSHA in this Stand-Down, visit www.osha. gov/StopFallsStandDown. The page provides details on how to conduct a stand-down; receive a certificate of participation; and access free education and training resources, fact sheets and other outreach materials in English and Spanish. To learn more about preventing falls in construction visit www.osha.gov/stopfalls.

The Occupational Safety and Health Administration has announced that its third-annual National Safety StandDown, scheduled for May 2-6, will focus on reminding and educating employers and workers in the construction industry of the serious dangers of falls—the cause of the highest number of industry deaths in the construction industry.

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Feature The Pieper Houston Story: Defining The Company’s Legacy by Stephane McShane If you ask your customers—and your employees—to define what your company stands for, what do you hope they will say? What legacy is being defined? Certainly, the major contributing factors to that legacy are your reputation, your business practices and most importantly, your people. It is common for companies to have a definition of how they want to be viewed. Many have published mission, visions, and values. Having these defined is great, but do we believe it? Do we live it? Why does legacy matter? Simply put, it is well known that people remember the great things that you’ve done, but they remember the bad things longer. Pieper-Houston Electric, an ASA member company in Houston, Texas, has produced an environment that many may wish to replicate. They have developed an enviable business model, exceptional team atmosphere, and a leadership culture that is nothing short of amazing.

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Pieper-Houston CEO Bud Walters says that the secret to his company’s success is having great people. That is the standard and heartfelt answer that defines the legacy of Pieper Houston. In lieu of using profit as the primary driver to success, the focus at Pieper-Houston is to develop people, process, and technology first. Increased profit is a measurable and important, but downstream, effect.

Paying Respect to the Past Pieper Houston was established in 1958 as a small, family owned residential contractor. The focus was on developing a company with a family culture and a level of customer focus unparalleled in their market. The company was founded on the roots of strong relationships and negotiated work. In building a history and a legacy for an organization, we must understand that how we have conducted business in the past will either enable or cripple our

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future ability to succeed. This is the difference between decisionmaking based on short-term goals, or developing a culture poised for longterm success. At Pieper, the culture was developed early to nurture and develop customer relationships to ensure that they exist well into the future. How about the internal clients? The philosophy does not change whether the focus is on internal or external customers. The construction industry can be a nomadic business, with long-term employees becoming a rare commodity. At Pieper Houston, that is the norm, not the exception. Building a team of franchise players has enabled the company to scale with trusted, proven performers. As an example, their field operations officer has been with the company for 37 years. His career began as a green apprentice working in the field. He is now responsible for managing the 275-person field crew. “During these 37 years I have experienced the highs and lows of the organization and the economy that drives our industry,” says Willie Cyr, field operations officer. “Cutting grass, fixing boat trailers, sweeping floors, or whatever it took during the lean years. There were Christmas bonuses that consisted of a turkey or ham ... but, there was always something. After Hurricane Katrina, a spare building was converted to a home for displaced residents from Louisiana and the outpouring of help and donations from Pieper was fantastic. When Hurricane Rita closed the city of Houston and

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forced millions to leave home, many Pieper employees were also impacted. Every one of the Pieper employees returned home safely and received a full paycheck, no questions asked. Leaders have been given the opportunity to improve themselves not only on a professional basis, but also on a personal basis, so that family lives can improve. The common denominator in all of these examples is the caring philosophy that has been demonstrated and continues to be demonstrated in this organization (family). It may not seem like much to receive a turkey as a Christmas bonus, but when it’s a lean year for the company and the owner comes out of his pocket to make sure that his employees (family) don’t go without, it speaks volumes.” The examples of home-grown executives are also evident in longevity of Pieper’s president (31 years), chief financial officer (30 years), and chief estimator (36 years). All agree that the past has demonstrated the company’s admirable, unwavering set of core values, and has solidified their commitment to the continued success of Pieper Houston.

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Celebrating Current Successes—Living in the Present With humble beginnings in small residential construction to its transformation to today, it is apparent that the foundations of solid business practices and engagement of its employees has led Pieper to be one of the undisputed leaders in its market. So, what is the secret to maintaining such a level of success? In the construction industry, it is difficult to remember to celebrate the successes of today. It is easy to overlook the opportunity to recognize those who are contributing heavily to the financial success of the organization. From the field to the office, and at all levels of the organization, the pride of working at Pieper Houston is prominently displayed. Organizational structure is critical in ensuring that the right people have the authority and responsibility to perform their duties effectively. The focus on safety is evident, with an outstanding record and welldocumented processes. This rare level of employee engagement, however, is all based on Pieper’s commitment to supporting and developing people.

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Not a day goes by where a member of the executive team is not checking in with members of their staff, offering insight, assistance, or simply lending an ear. On a weekly basis, foremen or field personnel in the office discuss ideas, contribute field perspectives, and mold the team atmosphere that drives positive project performance. This is far from a dictatorship model of leadership. This is collaboration at its finest, with internal clients being held in the very highest regard. Members of the executive team prefer to be called champions as it is their mission to take the “great people” and give them even more opportunity to grow. One of the internal champions states: “Bud has created a work environment that feels more like family than work… We treat everyone with respect and value their ideas. We want everyone to reach their full potential.” The employees of Pieper Houston are successful and are given the tools and opportunity to grow. The end result is a positive atmosphere which drives productivity and raises profitability. This is certainly no accident. When you ask Walters how he has achieved his current success, his answer is always steadfast, “We have great people.”

Planning for Performance Excellence—The Future Defined There is a danger that exists when the tenure of the executive group is as long as Pieper Houston’s. The concept of not knowing what is occurring outside of the walls of your own organization can severely limit the progression and improvements that firms must make to remain relevant and profitable. The solution to that is visionary leadership. Walters has been heavily involved with ASA for many years, serving as vice president and president of its

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board of directors of ASA–Houston Chapter. Walters has leveraged the educational opportunities provided by ASA to ensure that he and his operations team stay up to date with advances in the industry and opportunities for professional growth. Because of this focus on the future, Pieper Houston has embarked on an improvement initiative that will position it strongly as a continued leader operationally, financially, and structurally. Reaching out externally for assistance from Maxim Consulting Group, Denver, Colo., is expediting these critical improvements. They have created and enabled teams to define, implement, and train on the improvements as internal subject matter experts—in essence, creating internal change management experts to ensure that the organization remains agile, evolving, and on the leading edge of technology improvements. Their move toward total process control will separate them from others in the industry, creating a seamless and transparent environment

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where estimating, BIM and CAD design, purchasing, manufacturing, and field execution all flourish. This transformational thinking and entrepreneurial spirit exists at many levels of the organization. Their staff is completely on board as they witness the positive impact of the changes. This is where history proves the point and drives the current success. This is an exciting, albeit rare, combination of attributes. It is not just the internal customers of Pieper Houston that recognize its excellence. Their external customers are invested as well in Pieper’s continued success. As Pat Pollard, vice president, Tellepsen Builders, LLC, lightheartedly teases: “Pieper is one boring subcontractor out there … no drama, no chaos, good looking work, great team, good team players … Happy owner … What the hell is that all about?” It is rare to find a company that still pays respect to the strong foundations of its core values. Even more uncommon is seeing that same company living very much in the

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present to operate with speed, agility, and unwavering customer focus. To have one company recognize its past, live exceptionally in the present, while strategically positioning itself as an industry leader for the future is truly a shining example of excellence. The secret to Pieper Houston’s success? Talented staff, visionary leadership, loyal customers, welldefined strategy, transparent project performance metrics, and world-class technology solutions. All those wonderful attributes aside, what is the legacy they hope to leave behind? The legacy will be left by the people it has touched, those it has influenced over time, and those lives it has improved along the way. If you sit in Bud Walters’ office long enough, you will hear him sing the praises of his staff at all levels, not taking one iota of credit in the conversation, but very much the innovator responsible. If you ask him why Pieper has been, continues to be, and will continue to be an industry leader in the future, he will always respond with, “We have great people.” Stephane McShane is an associate director at Maxim Consulting Group responsible for the evaluation and implementation processes with our clients. She works with construction-related firms of all sizes to evaluate business practices and assist with management challenges. With a large depth of experience working in the construction industry, McShane is keenly aware of the business and, most specifically, operational challenges firms’ face. Her areas of expertise include: Leadership development, organizational assessments, strategic planning, project execution, business development, productivity improvement, and training programs. McShane is an internationally recognized speaker, mentor, author, and teacher. Her ability to motivate, inspire, and create confidence among your work groups is extremely rare and very effective.

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Feature Exit Planning—Is it Time? by Gregory Caruso, Esq.

Let me make it clear—there is absolutely nothing wrong with running your business into the ground and closing when it is time for you to retire. Nothing wrong. Unless YOU want a different outcome. Then it is a shame. • The biggest problem we see with exit and succession planning is that there isn’t any. “I need to make sure we get the _____ installed today. I’ll plan on a slow day.” • The next biggest problem we see with succession and exit planning is that people are not honest with themselves. Unfortunately, usually they don’t even know it. Things like “my managers would love to buy me out.” Of course, in this true example, no one had talked to the managers and they were older than the owners. How do you think that turned out?

• The next problem (still big with

huge negative impacts) is not understanding the long (very long) timeframes it takes to plan, negotiate, and then implement

most exit/succession plans. Sometimes, this is a version of not being honest with oneself (I know—your case will be quick and everyone will jump to pay your full price in cash) and, sometimes, it is a lack of knowledge (which does not shorten the process). • Another big problem we encounter repeatedly is owners who think that they are going to get a good result selling at the bottom of the business cycle. One version of this is, “Why reinvest, I’m going to sell.” Another is, “Times are good and I am making too much money to sell.” Unfortunately, it just does not work that way. • Finally, the misbelief that potential has pricing power. Profits, processes, and good people today have pricing power. Potential only has power after you currently have profits, processes, and people. When you take a typical subcontracting business owner and combine two or three of the above, the result is often wind-down and

then liquidation of the trucks and equipment. Again, I have seen cases where people semi-retired intentionally and continue to run a job or two. For them, this was a great result. For many owners, this is a sour way to end a great career.

Is It Time? Exiting a subcontracting firm takes a long time: • If you decide to close shop, it will take a year or two to complete the jobs you have. Maybe longer to collect retentions and release bonds. • If you want to sell to managers or children, usually you will be financing the transition for five to 10 years. • Even a market sale is likely to take a year to get to closing and then often one to three years of transition time. Generally, you will take a price reduction, if you do not agree to some sort of earn-out extending from one to three years. Finally, you may end up financing a portion of this sale, too. These timelines do not include the time it takes to prepare yourself; your business; and, if selling to managers or family, prepare your buyer for the purchase. It often takes five years of conversations and informal negotiations with your children or managers before the five- to 10-year buy-out begins.

Is It Time? What about the economy and the ability of a buyer to finance? Remember a few years ago when your banker would not even talk to you? “Just pay the line of credit off—we don’t lend to contractors.” Now, they want a relationship with you. (Isn’t that nice?) Well, if you need outside financing as part of your transition (some internal and

almost all external sales have outside financing), the banks need to be willing to lend. Out of a typical seven- to 11year economic cycle market sales for contractors tend to be financeable and profitable for four to seven years. What this means is that, in order to have a successful exit transition, you must sell at or near the top of the market—yes, when running the business is highly profitable and fun, when it is easy decide to stay one more year. (That strategy is as successful as timing the stock market.) Selling when times are good takes both planning and discipline.

Is It Time? Let’s look at what really goes into exiting a business. What you and a buyer have to agree to. These are big issues that take time: • A price for the business needs to be agreed to. The hard part with subcontractors is that profits tend to be large one year and small the next. Gross margins and net profits vary. Is the price going to be fixed or will the price vary with future results? All of this makes pricing tricky, even when everyone really is trying to be fair and find middle ground. • What are the financing terms for the sale? Who is going to finance the sale? Over how many years? What interest rate? Are you going to get a salary for transition and management? What if everyone assumes you will be involved in management for a period and your health deteriorates early? • What if the market unexpectedly collapses—how will the price or terms adjust? • How will bonds and supply personal guarantees be transferred? • Who is going to have the final say and when in the process? Control is a huge issue. Especially when things do not go as planned— and they never go as planned. Many owners are used to doing everything their way when they want. (It’s often why you started the

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business in the first place.) Can you really behave as a partner for two to five years if you are selling to managers or family? • That does not begin to get into personality matters that may exist with managers and almost always exists with children. All of this must be worked out and it takes time. Let’s look at what many buyers (particularly your managers or children) are thinking about. When you buy a business, you often must personally guarantee a loan to the seller, a loan to the bank, loans to large suppliers, a real estate lease, and guarantee bonding. The buyer’s spouse must sign. The house and savings (if any) are at risk. Most owners don’t think about that much. You have lived with this fact for years. To a buyer it is a big deal. Many of them also are not truthful with themselves about taking that risk. “Of course I want to be an owner,” they say. Often it turns out they wanted 5 percent of the upside with no downside risk. They meant they wanted a bonus, not true ownership. When you talk to them about buying your business from you, make sure your buyers understand what you really mean.

Is It Time? Profits, systems, and people create value. It takes time to create and perfect (and perfect again) the right systems. It takes time to get the right people fully trained to run them. It then takes more time for the profits to show up on the bottom line. If you are not highly profitable now, in all likelihood, you missed this economic cycle— at least to get your full value. Cut expenses—run tight. As a consultant, I can’t quite explain it, but some owners just run tight ships. Others always have a reason why they have two extra employees or consistent job busts. Those reasons are very expensive.

It Is Time. What this means is you should start planning your succession early. Most owners don’t plan and most

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businesses are run into the ground and then given away or shut down. That is the truth. The owners who do plan often do it hidden from view. They are afraid of anyone knowing the plan. Some of these owners even have a general planning process that includes staff and management, yet, somehow, succession is not part of the process. Too dangerous, they say. Why is that? I can assure you that your staff, customers, bonding company all know one day you will leave. Succession should be part of every company’s planning process. The conversations should include both, whether the succession comes as an emergency (heart attacks happen) or as planned. Succession can become an opportunity for individual job growth— perhaps, an opportunity to become an owner. With open conversations, you can really talk about what it will take to be an owner and if there is interest. You can set up options to create winwin situations so that, if that once-ina-lifetime, 10-times earnings roll-up opportunity comes along, you can sell out and they get a big bonus. If it does not come along, you have the right people in place with a transition in hand. Much better than a surprise. It is time to make succession planning part of your company’s planning process. It may even be time to start moving forward implementing your plan. Remember—it is time! Gregory Caruso, Esq., CPA, CVA, is a principal, Harvest Business Advisors, with offices in Columbia, Md., and Princeton, N.J. He regularly works with construction business owners to appraise business value, create succession plans, and broker/ sell businesses. He has been involved in more than 50 sale transactions and hundreds of transactions as an advisor and principal. He can be reached at (410) 507-5441 or gcaruso@ harvestbusiness.com, and http://www. harvestbusiness.com/. Read more about exit strategies in the white paper, “Succession and Exit Planning for Construction Subcontractors,” at http://goo.gl/rio820.

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Feature Corporate Strategy from a Concrete Superintendent Point of View by Gregory Caruso, Esq.

My father was CEO of a major general construction company. (It would be over $1 billion annual revenue in today’s dollars.) His corporate rise was predicated on his ability to get concrete poured on time and under budget. In many ways, he was always a concrete superintendent at heart. He had a few phrases, which he recited over and over to me as I grew up working at his company. So, let’s talk about strategy from a concrete superintendent’s point of view.

Did You Pour the Concrete or Not—No One Cares Why You Did Not How does your strategy address performing the work with high quality, on time, and under budget? Planning, people, and perseverance. In construction, many of your costs are tied to how long it takes to produce. Certainly, your hourly labor costs. But also your allocated administrative costs, your fee, and your profit. Not to mention, your own personal focus. In the end, the biggest success factor in subcontracting usually is “Did you pour the concrete or not?” Let me assure you, quality subcontractors pour the concrete. Your strategy must look at how you can improve your production timeline and quality. How do you coordinate with your general contractors or owners and make sure that the job is ready? If you start from the premise you have no control over things like that, then you will have no control. You have more control than you think. How do you make sure that your employees know the work to be performed and will have all the materials and tools necessary to do the work? Too many crews relax, while the foreman runs to the hardware store to pick up fasteners or some other necessary supply. This costs you a fortune.

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A Quality System— Where Ordinary People Get Extraordinary Results Every Time How does your strategy address business systems and the people that run them? Your business is based on systems that work (or often don’t work). Bidding, buying, scheduling, accounting, etc. How do you create and continue to improve systems so they work perfectly every time? Most construction subcontractors provide labor, which must be managed. Even with the goal of creating simple repeatable systems, the systems are still worthless without good people to run them. In good times, the biggest impediment to profitable growth is usually finding good people to manage and perform the work. Related is how you bring new people on board and train them so they follow your systems your way. When I worked in my dad’s estimating department, for the first three months, every take-off I did was reviewed. Not just the quantities, but the quality of the handwriting (I’m telling my age), the layout of the take-off information on the page, the placing of the page in the folder, etc. This produced a system where anyone could pick up a folder and know what had been done and not done. You must always be looking for the best people. You don’t know when you are going to get a great opportunity or have a key person leave unexpectedly. Knowing who just might be available can greatly speed up the hiring process. If someone really exceptional comes along, you may need to hire them and let someone else go. Always difficult, but sometimes necessary. Finally, while my dad never did this, he knew a subcontractor that, when the market got tight, would place a few of his key men in building maintenance roles or other positions with a

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handshake deal that he could get the guys back when work returned. Really good people are hard to find and are worth protecting.

The ‘Conduit Theory of Liability’ How do you plan to reduce the liability created by your work? This is a tough one for subcontractors. The reality is you are where the liability is often being shifted—particularly if you work for large general contractors on large jobs. Their subcontracts are written with the conduit theory in mind. The concept is, if you put a marble in a conduit and tilt the conduit, the marble will roll from one end to the other. A general contractor and a wise subcontractor are going to try to do the same thing with liability. Either give the liability to the architect, owner, or general, or try to give it to your insurance company, sub-subs, suppliers, etc. The key is to shift absolutely as much liability as possible. The Conduit Theory of Liability really ties into a way of assessing and reducing risk in general. How can you shift risk? Other ways of shifting risk are to work for quality owners and generals. Have effective safety programs. Train your people so they work efficiently. How can you shift risk from your company to some other entity? Always seek to reduce the risk you must take for any given profit.

Know When to Take a Risk Even with the Conduit Theory of Risk, there are risks you must take. In fact, successfully running a business means knowing when to take a risk. What is your strategy to assess and then manage the risks you take? Some risks are too high and need to be passed on. Some risks are high and need to be watched every day, so they do not get out of hand. Other risks are just smart. My dad took lots of smart

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risks. Like making sure he bid tight to win the job that fell right in his company’s sweet spot. When he took a big risk, you can bet he made sure systems were in place to monitor the risk and manage it. For instance, he focused on collections. To him, a big risk was working for a developer that had a history of payment issues. In that case, he had the project manager alert him directly if the requisition was unreasonably cut or if payment was more than a day late. Take smart risks, take necessary big risks and manage them. Finally, don’t forget the risk of succession and transition. My concrete superintendent father’s biggest accomplishment in his mind was a company that ran seamlessly without him when he retired. This rose from making succession a “normal” conversation that was regularly addressed as opposed to allowing it to become the elephant in the room.

It’s Not the Dollars That Pass Through Your Fingers—It’s What Ends Up in Your Pocket You work for the bottom line, not the top line. How does your strategy make sure you will maximize your profit today? Focus on your bottom line. Focus on how you get profits to stick. A $2.5 million revenue subcontractor that makes a 10 percent profit plus pays a $120,000 salary to its owner is far more successful than a $5 million revenue company that can barely pay a salary to the owner and does not make a profit. Things you should be doing to maximize profits include benchmarking your

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results against competitors. Benchmark for 75 percent or above. You are not shooting to be average. My dad never accepted average. Many trade associations sell benchmark data. Many accountants can get you lower quality, but often more affordable benchmark data. Look at your job cost data and expense reports from different jobs and different services and products. See where you get the best margins. Then, seek that type of work. Is there a new process or product that might allow higher margins and falls in your firm’s abilities? If so how do you move into that area?

Putting It Together Your strategy must start by honestly (a topic for another article) assessing your business as it is today. Using the above phrases as a guide, review your company now and review what you would like the company to look like in one and three years. Do this with your key people so you get their valuable input and they are invested. Review it with your accountant, lawyer, insurance expert, etc., so you get their knowledge. Yet, keep your plan simple and to the point. Where do you and your people excel? What systems are really working and which ones need rapid improvement? How will you recruit the best people? Write this all down. A few clear to the point sentences are better than pages of fluff.

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Next, look at who you should be marketing to in order to have plenty of profitable opportunities. How do you track those jobs and select the right ones to really focus on and obtain? How many jobs must you follow and bid to get the amount of work you want? Who are your best clients and what are your best products and services? Write this all down. Write down key financial numbers both by dollars and units for the three years. Then break them down to a monthly projection, taking into account any seasonality in your “typical” year. These last few items can be in a very summary format. We do not want to get lost in detail, but we do want to be able to compare our plan to what actually happens. Next, prepare a 90-day list of action items. Each month, review how you are progressing on the action items. As these action items are performed, add new action items so you keep moving toward your one year and three year goals. Follow this and you will have the beginnings of a great strategic plan. A strategic plan that is action-oriented. A strategic plan like the one that worked for my dad, a concrete superintendent at heart who did not have to ask, “Did you pour the concrete or not?” because he knew it had been poured. Gregory Caruso, Esq., CPA, CVA, is a principal, Harvest Business Advisors, with offices in Columbia, Md., and Princeton, N.J. He regularly works with construction business owners to appraise business value, create succession plans, and broker/sell businesses. He has been involved in more than 50 sale transactions and hundreds of transactions as an advisor and principal. He can be reached at (410) 507-5441 or gcaruso@harvestbusiness.com, and http://

www.harvestbusiness.com/.

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Feature Leveraging the Service of Service Contractors by Gregg Schoppman In an industry where “bigger means better,” service-oriented contractors are the oft forgotten group of builders and constructors. For many firms, the service element of their business is the “smaller cousin,” accounting for a significantly smaller portion of the firm’s volume. However, as firms continue to explore the secrets to their success, this “smaller cousin” is often the more successful and financially stable family member representing the lion share of the margin dollars. Higher margins and the annuity stream associated with service businesses are just two of the benefits electrical, mechanical and even general contractors are realizing as the result of having true service-oriented components of their business. Definitions abound when it comes to service businesses. Often, the volume is an amalgam of preventive maintenance, repairs and even small construction projects. Expediency and intimate customer contact are two of the common threads that weave through most service contractors. This is not to say a shell building general contractor cannot have an intimate customer relationship but building/repairing/maintaining inside an existing facility takes a different level of customer management. When considering a service business it is easy to apply a broad brush to the understanding of profitability—“These projects are so small, you HAVE to charge a high premium for it to make sense …” However, the customer ultimately dictates what they will pay or more importantly who they will choose, regardless of what a contractor charges. If the “service” is there—speed to solve a problem, cleanliness in an active workspace, etc.—the premium becomes worth it. It is this element of a service business that requires deep examination and continual refinement. Why do customers choose us and why are they willing to pay a premium? Many executives look at their service groups and describe them as “not really construction.” However, it is this

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“not real construction” that garners some of the highest margins and often carry their construction siblings through times of economic uncertainty. Service is different, yet there are many attributes that firms can refine or glean from this discipline and enhance other aspects of their business: • The focus on structured processes. • The utilization of metrics and key performance indicators to identify trends and manage the business. • The symbiotic nature of service and construction and the cross proliferation amongst the business units.

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variability. So should contractors. Whether it is two technicians or 20, there should be an established, replicable “Brand X Service” standard. With a defined process, it is also easy to make course corrections as feedback is received.

• Trainability—As the industry

Consider the flow of work within a service business. A customer has an “issue.” From the time the service technician is dispatched to the time the work order is invoiced, the entire series of events could be plotted on a value stream map with ease. Whether it is the truncated nature of the work or simply the staccato flow of the events, service work appears to lend itself to better to a flow chart than its construction counterparts. It is this structure that creates ownership of the various events within the work cycle, as well as the value drivers within the process as it relates to the customer. For example, if a customer states, “We had an emergency and it took three days for the contractor to show up …” or “They left a mess in our patient rooms …” it is easy to pinpoint the broken linkages within the process, as well as apply corrective measures to drive success. Ironically enough, this same process mapping could be applied to any project, regardless of size, but the prevailing belief is that larger projects offer greater variability, thus creating an infinite number of possible outcomes. While false, service contractors can use the value stream mapping/process mapping concept to achieve several advantages:

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• Replicability—Customers hate

continually wrestles with the scarcity of labor, it is important to have a model that can easily be transferred to new associates and technicians. A defined and structured process also improves the ramp-up time associated with new technician orientation when compared to the haphazard approach of “on the job training” or simply being “thrown to the wolves …” The key word is “value.” From the time the work order is placed to the time the technicians leave, have they established value in the eyes of the customer? If not, why? The value stream mapping process examines the touch points, drives increased value within these points and also removes waste. How often have managers, superintendents and technicians said, “Well, that’s the way we’ve always done it.” Has this way cost the firm excessive amounts of time, overhead and most importantly customer relationships?

Metrics and Key Performance Indicators With an established process, leaders also have the ability to measure more accurately. Once again, whether it is the brevity of this type of work, it is also easy to gather the ever-important metrics of project performance.

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However it is this same brevity that provides a litany of other problems. For instance, labor tracking, unless done “real-time,” becomes a challenge. A day-long job becomes arduous to track when labor summaries are only released at the end of the month. However, consider many of the other elements of a service business that can be tracked with relative ease: • Work Order Completion Time. • Preventive Maintenance Tracking. • Customer Service “Grades.” • Work Completion—Invoice Generation Time. • Inventory Tracking/ Replenishment Time. The list above is hardly innovative. In fact, each one of these metrics could be applied to its construction counterparts.

is the core business and in most cases, the same customers. One important question to always ask is, “When the customer sees our business, do they see the same firm or two entirely different groups with two completely different standards of service?” One could argue that customer service is important regardless of the type of work performed but in reality it is easy to see how a distortion may come about. For instance, a project might be awarded through a low-bid, plan and specification process, while the selection of a service group might be based on criteria completely devoid of price. This dichotomy in business development can easily lead to internal cultural differences on client management. Simply put, change orders management alone can create

However, there is this belief that the construction jobs are “too long” or this level of minutia doesn’t apply. Business owners lull themselves to sleep by measuring the critical few— profitability and safety. This is not to say these two items are unimportant or that measuring a cavalcade of items which translate to future success. If constructions firms are to be successful in the future, becoming a data-driven business like Google or Amazon will be necessary. However, they need not look to Google or Amazon, but rather just down the hall at their own business units.

a myriad of challenges—one group may be hyper-focused to argue for every last cent, while another group might discount a change order for the sake of the relationship. Customer perception must also be considered and how they see the processes, standards of service, policies, etc., of two groups under the same roof. It is also imperative to examine the internal processed that allow for leverage. For example, how do the groups handle the ever-sensitive transition? As a construction project winds down, how is the service group introduced? Best-of-class firms have a detailed process to handle this transition to leverage existing relationships and grow the business organically. There is no “fend for themselves” attitude when it comes to business development, and these firms actively pursue collaboration opportunities. The sales and business development entities of the two internal business units meet frequently to discuss everything from client proclivities, leveraged opportunities, and long-term market conditions. Construction and service groups may look like Oscar and Felix sharing little

Connection to the Core Business It is probably a safe bet that in many construction/service organizations there exists an uneasy peace. They may share the same colors and uniforms, but that is about as far as the commonalities go. More than likely, there is an uneasy alliance about “that other group” that shares the building, stemming from a simple lack of understanding about what that other group does every day. It is understandable that there would be confusion. Metaphorically speaking, one group is focused on building new cars while the other looks more like an automobile mechanic. However, at the heart of this situation

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more than an office building. However, this odd couple should be considered the ultimate in construction matrimony. Short-term profitability and long-term value generation for the firm lies in a construction firm with a service mentality. As a principal with FMI, Tampa, Fla., Gregg Schoppman specializes in the areas of productivity and project management. He also leads FMI’s project management consulting practice. Prior to joining FMI, Schoppman served as a senior project manager for a general contracting firm in central Florida. He has completed complex and sophisticated construction projects in the medical, pharmaceutical, office, heavy civil, industrial, manufacturing, and multifamily markets. He has also worked as a construction manager and managed direct labor. Furthermore, Schoppman has expertise in numerous contract delivery methods as well as knowledge of many geographical markets. He can be reached at (813) 636-1259 or gschoppman@fminet.com.

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Feature Strategic Marketing That Works— Would You Buy Your Own Services? by Gregg Schoppman

The days of “send it and forget it” are over. As consumers, we are inundated by millions of advertisements. Fortunately for the trees, more of the sophisticated builders have migrated to an electronic media. However, with little to no constraints on emailing, Tweeting, and Facebook and LinkedIn posting, buyers navigate through a sea of “people that will save them money, time and, of course, be safe.” It is almost as if buyers would relish getting an actual brochure in the mail to break the monotony of email sludge they get on a daily basis. Contractors too have migrated to electronic transmissions to demonstrate their affinity for technology. Pop quiz—is this the extent of your business’ marketing department, a heavy reliance on blanketing potential customers with email messages touting superior quality, safety and service? Marketing continues to morph and transform to accommodate advances in technology all with the aim of establishing a firm’s brand in the marketplace. With all of the noise, there has to be a way to establish a superior strategic marketing message, leveraging a firm’s ability to message deeper and achieve higher conversion to actual construction revenue.

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Targeted Audiences, Themed Messaging The good news with technology is it has enabled inexpensive, mass communication. The bad news is— consumers are becoming desensitized to seeing emails and Constant Contact. While there is undoubtedly a statistic that shows the relevance and benefit of blanket communications such as this, it resembles more of a shotgun blast than a targeted rifle shot. There should be a deep connection between the firm’s strategic plan and the marketing audience. Revenue potential, current contractor alternatives (for the vendor/customer), buying traits, etc., are all relative factors that should enter into the equation of triaging this marketing list. With a healthy list assembled, it is important to tailor the messaging appropriately. First, it is probably time to shelve the messaging associated with “being on time, on budget and safe.” While it sounds like heresy, these three expectations are overused, trite and to be blunt, a requirement! Themed messaging should be the first priority. For instance, consider the following: Overarching Themes—Consider something that the firm “wants to be famous for.” For instance, maybe it is a portfolio of technology projects or sustainability. Maybe it is for working in sensitive environments (i.e. hospitals, clean rooms, etc.) The firm’s messaging should be constantly

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reinforced—saying it one time will not be enough. To be famous, the firm should consider pounding the drum over and over on its capabilities. Statistics that Sell—With a theme established, consider your numbers. For instance, everyone has seen the commercial about “Four out of five dentists agree …” What testimonials and fact-based marketing can be leveraged? For instance, “On average, our crews finish our work 12 percent more efficiently than our competition …” or “We’ve completed 25 clean rooms …” The key here is two-fold— definitively prove the value you provide and ensure the right message is making it to the right audience.

Be the Expert—Training Not Selling Let’s be honest. Most people don’t like sales meetings. They are necessary, but cold or warm meetings are somewhat of an awkward courting process. Business developers want to maintain an appropriate balance of selling and listening. On the other hand, most customers have heard it all before. Promises of greater value, better delivery, etc., etc., etc. Additionally, there may be an added wrinkle. A business developer may be speaking with a senior leader of a firm—say a general contractor—but is that person really the right audience or decisionmaker? Should the courtship really include an audience of estimators,

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procurement managers, project managers and superintendents? One tactic to consider is to provide customized training to this larger cadre of associates. For instance, as a mechanical contractor it might be beneficial to provide training on the latest HVAC systems, the “do’s and don’ts of mechanical construction,” the intricacies of clean environments, etc. Granted, there is always a certain “spin” to this free training, but consider the benefits of having a captive audience, all while being the smartest technical people in the room? Ultimately, this establishes and reinforces the firm’s ability to “be the expert” and more importantly develop deeper relationships. With a dose of interactive learning, the keen marketing professional can establish a training that allows a potential customer to share their deep reservations, concerns and hot buttons. Even the most intimate sales meeting may never allow for this level of dialogue.

Proposals that Sell Look at your proposal. Really examine it. Would you buy your own services? Once you are passed the bias of ownership, a deep dive into a proposal often provides a startling realization. It looks the same as every other contractor’s proposal. Price, a brief scope, a litany of exclusions and a signature. For larger proposals, there may

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be the obligatory “Personnel Tab” with resumes and “Firm Experience Tab” with glossy photos of past projects. Overall, this is hardly true differentiation. It is important to realize that strategic marketing is as much a fact-finding expedition as it is discovery of new customers. Done correctly, a strong marketer will determine important value drivers in the customer’s perspective. All too often, contractors determine what is important to the customer based on experience with other customers, hence the reliance on “on budget, on schedule, and safe.” Given the right amount of discovery, each customer has his or her own list of hot buttons. Maybe this project is dependent solely on schedule. However, your firm’s proposal only touts your safety record. Misalignment leads to a “commodity view” of a contractor’s proposal—since nobody listened to what was truly the most important driver of success, everyone is evaluated on price. It is naïve to think that no customer cares about price. However, each proposal should be customized to hit on that customer’s most important feature. Done correctly—the targeting, the selling, the proposing—there should be a seamless flow and more important a true alignment from customer prospecting to building. This is simply one avenue to examine. There is no shortage of avenues to explore in the marketing arena.

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The key themes to understand is that strategic marketing requires time and inter-firm collaboration to be successful. For instance, measuring performance from a labor perspective to provide meaningful statistics requires a strong bridge from the do-work team to the get-work team. Ultimately the value chain is truly realized when customers buy what we are selling and most importantly performing. As a principal with FMI, Tampa, Fla., Gregg Schoppman specializes in the areas of productivity and project management. He also leads FMI’s project management consulting practice. Prior to joining FMI, Schoppman served as a senior project manager for a general contracting firm in central Florida. He has completed complex and sophisticated construction projects in the medical, pharmaceutical, office, heavy civil, industrial, manufacturing, and multi-family markets. He has also worked as a construction manager and managed direct labor. Furthermore, Schoppman has expertise in numerous contract delivery methods as well as knowledge of many geographical markets. He can be reached at (813) 636-1259 or gschoppman@fminet.com.

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Legally Speaking

Business Resources Disappearing Before Your Eyes by Patrick C. Barthet You’ve worked hard—very hard— to build a successful business. You’ve developed procedures and sales methods that distinguish you from your competition. You have a solid customer base and great sales. And, you have a number of key employees who have learned your system and who excel at customer generation and retention. All good news, but do you also have the right agreements in place to protect your company’s assets? Unfortunately, business owners and employers can be easily drawn into a state of complacency, overestimating the loyalty of their employees while underestimating the aggressiveness of their competitors. In an economic environment where every sale matters, and any advantage can make a difference, companies have little compunction in raiding their competitors’ employees and customers. So just like you’d never think of leaving your valuables where anyone could simply take them, you don’t want to overlook those business

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resources in which you have likely invested the most time and money— your trade secrets, your customers and your key employees. You need to put in place nonsolicitation, non-competition and non-disclosure agreements. First understand that non-solicitation and non-competition agreements, while seemingly similar, actually accomplish quite different goals. A non-solicitation agreement prohibits an ex-employee from asking your customers, as well as your employees, to leave you. A noncompetition covenant is a promise by your employees that they won’t go out and compete with you. While it is bad enough to have an ex-employee go to a competing company, it is surely much worse to have him or her calling on your customers and your current employees, asking that they come over and join him. You’ll want to be sure your trade secrets— that confidential and proprietary information which you have developed for your business—isn’t

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made available to others. Everything from customer preferences, sales figures and vendor arrangements to unique formulas, proprietary software and specialized techniques acquired over years of trial and error all belong to you and need to be protected. The last thing you want to see is an exemployee using the knowledge and experience gained at your expense. When drafting these agreements, keep in mind that the initial threshold requirement to their enforcement can sometimes be the most difficult. You’ll need to show that there is a legitimate business interest that needs to be protected. Keeping proprietary and confidential information, trade secrets or customer lists from getting in the hands of a third party is such a legitimate interest. And, even after establishing this requirement, you will still need to show that the restriction being imposed is not overly broad and is limited to those geographic areas related to your business. Any restriction should not be unnecessarily long. Two years

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Just like you’d never think of leaving your valuables where anyone could simply take them, you don’t want to overlook those business resources in which you have likely invested the most time and money—

has become customary in many jurisdictions. Finally, the employee must receive some benefit for agreeing to these covenants. To sum up, the restrictions you impose must be necessary to protect your interests, reasonable in time and scope, supported by consideration or benefit, and uniformly applied if they are to be enforceable. Remember, each restrictive agreement is fact specific—one size does not fit all. For example, some employers think they can have employees sign such agreements anytime—even after they’ve been working at the company for a while. But without providing something of value in exchange, employers may end up with an agreement they can’t enforce. Also attempting to restrict someone for too long or too far could result in a court finding that the agreements are too broad. Don’t fail to recognize how green the grass across the street may appear to your employees and how eager your competitors may be to recruit some of them. In either instance, you could be in for a

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your trade secrets, your customers, and your key employees.

surprise. Be prepared. Non-compete, non-solicitation and non-disclosure agreements, whether they are part of an employment contract or stand alone restrictions, are absolutely critical to protect your company’s investment in its people, customer relationships and know how. Finally, you’ll want to be sure that all departing employees agree not to disparage you or your company after leaving. You don’t want or need an ex-employee bad mouthing you to your customers, existing employees or general public. You’ll want to have a non-disparagement agreement in place stating that such behavior won’t be tolerated and could result in legal action. This may all sound like so much legal mumbo jumbo, but be clear: failing to insulate your company’s

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trade secrets and to erect some legal obstacles to restrain your employees could be very costly. Don’t let what you’ve worked so hard to develop just walk, or run, out the door. Patrick C. Barthet is founder and president of The Barthet Firm, a 14-lawyer commercial law practice focusing on construction-related matters. The firm’s board certified construction law attorneys have mediated, arbitrated and litigated all types of contract, lien and bond claims. Read more at www.thelienzone.com. Barthet can be reached at pbarthet@barthet. com. This article is for informational purposes only and is not necessarily representative of the current state of the law. It is not intended as legal advice and the reader is encouraged to consult an attorney before taking any action. This article originally appeared in the May 2016 edition of The Contractor’s Compass.

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ASA/FASA Calendar May 2016

12 – Webinar: The Payment Dance in the Construction Industry

3 – Free Webinar: Proposed Wage and Hour Regulations 10 – Webinar: Websites, Email, Social Media and Your Domain Name

Contact information for all ASA and FASA events/ programs:

www.asaonline.com education@asa-hq.com

June 2016

•

What Subcontractors Should Know About Lien and Bond Claims

•

Didn’t Get Paid? Now What?

•

ASA’s Reservation of Rights Stickers

•

Legally Speaking: Preserving Claims Look for your issue in May.

THE QQ

THEME: Preserving Claims

14 – Webinar: Driving Project Success: Keys to Improving Productivity

Win. Win. QQ

in the May 2016 Issue of ASA’s

THE

April 2016

Coming Up

Sell your products and services. Advertising reaches industry leaders and decision-makers who spend $11+ billion annually on products and services.

PAST ISSUES: Access online at www.contractors knowledgedepot.com

Support ASA. Advertising supports ASA, the industry voice of trade contractors.

That’s a win-win situation. To advertise in The Contractor’s Compass, contact Tony Kozak at (716) 844-8174 or advertising@asa-hq.com

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JUNE 5TH, 11:08 A .M.

A STAGGERING STATISTIC INSPIRES A LIFE-SAVING RULE IN AN INS TANT,

C A LV IN B ERGER SAW THE VA LU E OF IN - C A B B EH AV IOR TR A INING FRO M CN A

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To learn more about CNA’s coverages and programs for building contractors, contact your independent agent or visit www.cna.com/construction. The examples provided in this material are for illustrative purposes only and any similarity to actual individuals, entities or places is coincidental. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. CNA is a service mark registered by CNA Financial Corporation with the United States Patent and Trademark Office. Certain CNA Financial Corporation subsidiaries use the “CNA” service mark in connection with insurance underwriting and claims activities. Copyright © 2016 CNA. All rights reserved.