Increasing profits by successfully managing deliver: Contractor's Corner

By Dave Stafford

It would be wonderful if we could just sell a vision of new flooring and eliminate all the hassle of actual delivery, but sadly, despite our fervent wishes, that is not reality. A great deal of labor stands between the vision and the delivery of the completed project. Managing crew labor effectively means larger profits, while not managing crew labor can mean a disaster of unmitigated proportions. Yes, training does figure in, but not nearly as much as selecting the right crew, quirks and all, to install the job.

Assuming that crews are trained and educated and can install according to the best practices of the trade, there are still a number of steps that will help deliver the job without going broke or winding up in court.

EATING THE ELEPHANT
Divide the delivery into its respective pieces. That means deciding how many crews are going to be needed to install the various product types or, in the case of a large job, how many crews, and of what size, will be required to install the product by the contract end date.

How much can a crew reasonably expect to install within a day, given the site conditions within which they must operate? It is always best to assume less than optimal conditions: it is July, the weather is hot, the HVAC may not be operating perfectly and there will be other trades in the way.

Just as important is how to distribute the responsibility of the crews. Is there outright dislike between crew chiefs or a sense of cordiality? Separating crews into specific areas, in different buildings or on individual floors may make sense, especially when there must be an accounting for crew payment. Otherwise, you may end up paying twice.

THE CREW
The project manager and the installation manager must exercise their mental muscles and discuss crew assignments. Where are the landmines within the project? Are there high priority variables that will have a bearing on crew selection?

We once had a project blow up because some crewmembers were not U.S. citizens and thus couldn’t legally work. In a similar case, only union members were allowed to work on a project.

For a multiphase project, stretching out over several months, will this crew be available for the duration? How is their record of consistent performance? I once had a bad experience because of high crew turnover, all the result of a crew chief with great technical skills but limited management abilities.

Whenever possible, it always makes sense to assemble the entire crew for a meeting to talk about the project specifics. And you might as well uncover thorny issues and discuss solutions rather than start out a job with an ugly surprise.

This type of open meeting can generate a lot of enthusiasm and underscore the importance of a project. Handled right, it can inspire crew members to be on their best behavior. At one such critical meeting, I drew up a ten-point code of conduct that outlined crew responsibilities and had each crewmember sign it. That made a big impression, and one apprentice remarked, “I had no idea this job was so important.”

GETTING OUT OF THE GATE
Is the job really ready to begin? Sometimes a general contractor falls behind schedule and feels he must show some overall progress. You may find yourself saying to your crew something like, “They haven’t finished installing all the windows, the HVAC isn’t operating yet and they’re still working on the drywall. But they want us to begin installation in adjacent areas.” It’s happened to all of us, but one sure way to start off on the wrong foot is to send a full crew to a job that isn’t ready.

To handle this type of pressure, insist on a pre-installation walk-through just before the crew is dispatched to review site conditions, starting points, product delivery areas and other time-killing aspects. Nothing is more frustrating for a crew chief than to show up ready to work and blow half a day dealing with paperwork or scheduling issues.

INITIAL REPORT CARD
It’s essential to always take stock of conditions and progress. How are you doing, and are there any specific problems that are holding you up? Are other trades being scheduled so that your team can perform their work?

After extremely slow progress on a particular job, I finally pulled the crew, telling the general contractor, “Joe, we’ll be glad to return when you give us cleared areas. I’ll do another walk-through with you on Wednesday, and can have a crew back on site by Thursday.” Joe screamed and made some threats, but that’s what we did—and in the end, we finished the job on schedule.

Your eyes on the job make a difference. Walking the job, looking at challenges and taking note of crew frustrations will help you deal with delays. If the HVAC isn’t operational and the temperature is high, it can affect adhesive drying times, and it can also drain a crew’s energy. A cooler filled with ice and bottled water might be a nice surprise and pay big dividends. Likewise, a new stripping machine might just mean the difference between staying on schedule and falling far behind.

THE CHOKE POINTS
Are you ahead of schedule or behind? It is devastating to hear a crewmember say, “We couldn’t get into some of the rooms, so now we have to backtrack all over the building to finish.” One or two rooms would have been okay, but not 12 rooms spread out over six floors!

Will better scheduling speed up the job and allow more production? Do you need more bodies on-site or more help from the general contractor? It is much better to talk with the general contractor’s project manager and outline the problems and potential solutions before you’re behind schedule.

If you wait, it all becomes your fault: “Dave, there’s no way you’ll be finished in time, so you’ll be on the hook for liquidated damages of $500 a day.” My protest that areas were not turned over in a timely manner fell on deaf ears. That was an expensive lesson.

To save time, money and frustration, it is always better to stress quality installation as you go, rather than catching it on the punch list. However, you need to set the standard for quality and production, and pass that standard along to your crews.

Your quality assurance technician should be inspecting right behind the crew, correcting any deficiencies. Remember, too, that with some types of installation, such as vertical lift, you can’t return to the areas, so you must correct any problems as you go along.

INSPECTION, SIGN-OFF AND RECAP
What are your client and his inspector looking for on your job? You need to know what standard will be applied to the work you’re delivering. With some inspectors, even a tiny imperfection will be noted as a deficiency while others will overlook irregularities that should have been on the punch list.

Usually, the crew chief should do his own inspection and fixes any mistakes. Then the flooring company project manager and his inspector should do a walk-through. Finally, a formal inspection should be done with the client. If your standards are high enough, there should be little that the client can object to in his inspection.

With a few inspectors, it may be best to leave them something to find so they can easily demonstrate that they are doing their job. Otherwise, their standards may become unreasonably high.

On the first go-round, limit any re-inspection to punch list items. I once lost control of an inspection, and each time the inspector came up with additional items that had already been passed. His frustration and mine increased exponentially. We finally sat down and established the ground rules; we would fix everything on his punch list, by area, and re-inspection would be judged on those specific items. Any items uncovered later would be part of a warranty issue rather than a specific reason to avoid project sign-off.

I cannot overemphasize the importance of having a clear understanding with the client of what will constitute substantial completion and project sign-off, as opposed to a warranty repair.

KEYS TO PROFIT
Know what you’re getting into with each project, because being oblivious to crucial nuances can spell failure. An experienced installation manager should be asking the project manager questions like, “What are the critical steps in getting this project done?” and “How much time do we have to deliver?” The answers will tell him which teams should be assigned and alert him to potential problems.

The flooring company’s project manager and his estimator need to do a complete review of the parameters of the bid, award and components. A review should help spot any differences or additions that must be made prior to order, delivery, staging of products and beginning the project.

The installation crew chief and the project manager (or company field supervisor) should walk the project site together so as to spot any anomalies or other problems that would prevent successful installation. There will always be some issues to address, such as extent of floor prep needed; other trades and debris still in the area; changes in the site versus the final blueprints; secured storage location; reaffirmation of the timeline on the project; specific details of inspection; signoff; and what must happen for the final payment to come your way. It’s important to make sure everyone’s on the same page.

There will likely be changes, additions or problems. Expect them and relish the opportunity to handle them with a smile: “Frank, I hate to spring this on you, but we need four more rooms with carpet by Monday, okay? It’s got to be fuzzy and in the color blue.” As you might imagine, there was a lot of leeway in this request and terrific potential for profit. However, be sure and get the change order signed!

When I have seen outright disaster on a commercial project, it has almost always been a litany of mistakes in customer service. An astute salesperson, project coordinator or expert installation manager can handle product defects or installation hiccups. Having a problem is nothing more than a wonderful chance to demonstrate impeccable service skills and commitment to quality delivery. Make every job special and look for those chances to excel in customer service, and you won’t have to dream about virtual installation.