Latest / Contractor Business Builder Podcast / How To Manage A Construction Project Step By Step
Transcript
- 0:00Most contractors are trapped working 12 hours a day because
- 0:04they do not know how to manage construction projects the right
- 0:07way. I didn't have proper project
- 0:09management methods. I used to be super stressed and
- 0:13was forced to work extra hours. So in this video, I'm going to
- 0:16be sharing with you every single detail from selections to
- 0:20scheduling so your jobs run with joy instead of all that stress.
- 0:24We'll break down how to lead your team, manage trades and
- 0:27keep clients informed so you're not stuck on site every single
- 0:30day. And I will walk you through my
- 0:32personal project closeout process to get you more
- 0:36referrals on autopilot. Alright, you are in luck.
- 0:39We're going to be building a complete system to ensure every
- 0:43project runs smoothly and profitably in your business.
- 0:46Why am I sharing this with you today?
- 0:48I have 20 years of contracting experience.
- 0:51Everything from tools to project management to general
- 0:54contractor, business owner systemized well over 30 plus
- 0:58general contracting companies. Very closely worked with them
- 1:01and I'm here to lead a movement towards systems leadership and
- 1:05generational wealth for contractors.
- 1:07I'm tired seeing contractors burnt out, stressed out, not
- 1:11having the right systems and processes in place.
- 1:12So you are going to be getting everything here today.
- 1:17So First things first, world class mindset need to get the
- 1:21thinking right first. I'm not big on, you know,
- 1:23mindset and all that kind of stuff, but there is some
- 1:25important things that you should be able to think about and know
- 1:28before we dive into building the system.
- 1:30So planning reduces stress. The if you have a lot of stress
- 1:34in your business and your life and your project management is
- 1:37because there's a lack of planning, 95% of the time all
- 1:40this stress that comes up is because you weren't proactive
- 1:43and didn't have a good system in place.
- 1:45So just recognize that lots of stress, it's, it's a, it's a
- 1:49data point that you need better planning.
- 1:51The secret of growth is speed. When you're running a project,
- 1:56don't wait for anybody, anything, any.
- 1:58Anyhow, it does not matter what happened.
- 2:00Your mindset needs. I'm not waiting around for
- 2:03anything. So the trade says they can't get
- 2:06there today. You need to call them, figure
- 2:08out why. If someone, something goes on
- 2:11back order, you need to go in and figure out why is the
- 2:13material on back order? What can we get instead?
- 2:15Why did this happen? It's very common and it can be
- 2:19tempting sometimes that when something comes up, oh, the
- 2:22homeowner didn't select the shower, whatever door for this
- 2:26shower. So now we didn't order on time.
- 2:29So we're not going to kind of get things rolling.
- 2:32We're going to have like a week break until we, we wait for the
- 2:35shower door, right? You have to get that kind of
- 2:37thinking. You don't want to make excuses
- 2:39for why something should take longer or you guys can't be
- 2:42working there. You always want to be pushing
- 2:45and have your, your foot on the accelerator for projects because
- 2:47as you know, every project runs into scheduling delays.
- 2:51Something happens, things get pushed out and that often leads
- 2:54to just a lease there too easy going idea of of speed.
- 3:00So if you want to grow your construction company, if you
- 3:02want to grow as a project manager, speed is the name of
- 3:05the game with planning caveat. You don't want to be speeding so
- 3:09much that you're missing details and things like that.
- 3:12But as far as like schedules, everybody knows this is a
- 3:15schedule. We need to stick to it total
- 3:17problem thinking. Not every problem is your
- 3:19problem, but every problem on a project will affect you one way
- 3:24or the other. So if the electricians guys
- 3:26aren't showing up because they're all sick, if there's
- 3:29some supply chain issue, that's someone else's problem to figure
- 3:33out and deal with. But it is your problem because
- 3:35you are accountable for the entire project.
- 3:37So if there is something that's gone wrong on the project,
- 3:40blaming someone else or coming up with excuses does not cut it.
- 3:44And it's not a way to operate. And you're just going to look
- 3:47unprofessional and you're not going to really get to the real
- 3:50heart of the problem if that is the way that you're thinking.
- 3:53Become a world class leader. The best project managers aren't
- 3:56just good managers, they are leaders.
- 3:59They are leading everybody by example, leading everybody by
- 4:02communicating well with them, leading everybody by having a
- 4:05system and a process, by being personal with people.
- 4:08Sometimes a personal touch is needed.
- 4:10So know that you're not just here to manage a project.
- 4:13You're here to lead a group of people to achieve a certain
- 4:17outcome, which is, you know, amazing projects that are on
- 4:20time, on schedule, on budget. I have yet to have a client come
- 4:24to me and say, Derek you are over communicating.
- 4:27I need you to stop talking and sending me emails and sending me
- 4:30texts and providing schedule updates.
- 4:33It's too much. I'm overwhelmed.
- 4:34I can't, I can't, you know, I don't want to hear from you at
- 4:37all. Just do the project I.
- 4:38Have yet to hear that happen from a client so just realize
- 4:41that the majority of contractors if if this is like perfect
- 4:45communication. Most guys, project managers,
- 4:48contractors are somewhere. Over here where communication is
- 4:52not high enough, very rarely the people over communicate.
- 4:55And even if they do, very few clients are gonna be upset that
- 4:59you're overcommitted. There may be a little annoyed
- 5:00sometimes, like I'm getting all these like notifications and
- 5:03they're sending all these updates, but it's their project.
- 5:05They're paying their good hard earned money for you to provide
- 5:08a service and create a project for them.
- 5:11They want to hear from you. They want to know what's going
- 5:13on and then finally go upstream. So you've ever heard this
- 5:18analogy, This guy, he's at a river and there's babies that
- 5:22are floating down the river and he's jumping into the river to
- 5:24go save the babies. Like, you know, why is why are
- 5:26all these babies like drowning in the river?
- 5:28So he saving these babies and then this guy jogs by and he
- 5:31says, oht, what's happening? He's like, all these babies are
- 5:34drowning in the river. He's like, OK, And he keeps
- 5:36jogging. He's like, are you gonna help
- 5:37me? He's like, well, I'm gonna go
- 5:38see who's throwing all these babies in the river.
- 5:40So make sure that you are not just putting out fires every day
- 5:44and saving babies that you're actually figuring out.
- 5:46Why is this keep cropping up? What's the heart of this
- 5:48problem? Go upstream and figure out
- 5:50what's the root cause so that we can put a system around and put
- 5:53communication around it. Build some sort of automation
- 5:56around it so that this stops happening in the future.
- 6:00OK, so now that we got some of those those mindset things out
- 6:03of the way and how to think, now we're going to be doing this set
- 6:06for success. So with the project, we want to
- 6:09be proactive and the pre con checklist is instrumental in
- 6:13making sure that we're moving into the project with everything
- 6:17in place and nothing is forgotten about.
- 6:19So we want to be checking the design and architectural, making
- 6:23sure that it is complete. It's been reviewed by yourself
- 6:27as a project manager or somebody on your team and when you can
- 6:30provide. Feedback to a designer
- 6:32architect, you want to do it in a nice wave so that they don't
- 6:35get upset. You know, who are they to tell
- 6:37me how to build a design a project?
- 6:40But if you can, if you can bring up things like, hey, I'm not
- 6:43sure if this design is going to work or this architectural
- 6:45piece. We're missing this information.
- 6:47When you can provide a bit of a list, it's like a professional
- 6:49take on some things that they may have missed or over or not
- 6:53thought about. It really elevates you as a
- 6:55professional. So always make sure you're
- 6:57reviewing the plans and the architectural drawings and going
- 6:59through everything to make sure that you are first and foremost,
- 7:03you're not going to have huge surprises when the project comes
- 7:06up, but also to be able to provide feedback.
- 7:07Next thing is scheduling. So complete scheduling of the
- 7:11preconstruction process of not just scheduling the actual
- 7:16project, which I will show you later, but scheduling the
- 7:18reconstruction process of how long is it going to take for
- 7:21design or for drawings or for permitting for any of you know,
- 7:24selections, all that kind of stuff.
- 7:26And then having a really good client onboarding process is is
- 7:29key. So this is where they have
- 7:33signed a contract and now you are going to be on boarding them
- 7:36as a client. What to expect, setting
- 7:38expectations. The biggest kind of place where
- 7:41frustration, friction, upset clients comes into play is not
- 7:45setting good expectations. So you should have a document
- 7:49that outlines all the expectations, what they can
- 7:51expect. As far as the construction
- 7:53project, you know how it gets started guys.
- 7:55Coming and going. Access to the sites, payments,
- 7:59invoicing, all these little things that if the clients ever
- 8:03got upset with you about something, you want to make sure
- 8:05that you put that expectation into the document so that they
- 8:08know going into it. This is what to expect
- 8:11essentially. Shared files.
- 8:13So you want to share files out to them, the plans, the
- 8:16schedule, their dashboard, whatever it may be to make sure
- 8:20that they have everything they need.
- 8:21And you have gone through a full checklist of like clients taking
- 8:25care of design architecturals in place, scheduling is in place,
- 8:28everything is in order. And we know that we are set for
- 8:31success. So now the $10 million
- 8:36selections process, any company doing $10 million projects or
- 8:39even, you know, doing $10 million in revenue, they have
- 8:42nailed down the selections process and the preconstruction
- 8:45process. If you want to scale up 10,
- 8:48twenty, $100 million construction company, even if
- 8:51you just want to get more organized and have less client
- 8:54complaints, you need to nail down the selections process.
- 8:56This has to be a condition for starting the project.
- 9:00I remember when I started moving in general contracting and doing
- 9:02remodels, and this is something I didn't do well and it
- 9:05definitely affected me and my clients.
- 9:07And looking back, it just seems so unprofessional.
- 9:10Now. Everything for the project
- 9:12should be agreed upon, selected before you even think about
- 9:15starting the project. And this is something that you
- 9:18should have a designer, somebody that's managing the selections
- 9:22process, that has design input. You as a project manager,
- 9:25business owner, yeah, you may know what looks good and you've
- 9:29been in the business long enough to know what you know materials
- 9:32and and stuff works together, but you're not a designer.
- 9:35If you're like me like you know, I don't have any clue.
- 9:37I can never make a beautiful interior like this and this may
- 9:41not be everyone style, but you get the idea right.
- 9:43So make sure you're offering design help, whether that is
- 9:46bringing in an interior designer from outside your company or
- 9:50hiring one inside your company. Depending on what kind of design
- 9:53build process that you have a strong selections schedule.
- 9:57So this should be either in your project management software or a
- 10:00spreadsheet that has all of the selections by area by.
- 10:04Room so that and everything is detailed, it's knowing this is
- 10:09the supplier, this is the dimensions, this is the the
- 10:12colour, the QR there the code, whatever you know like all of
- 10:16that information should. Be in there so anybody can go
- 10:19into it really easily and find it.
- 10:21And then you want to be adding your preferred vendors.
- 10:23So giving your clients a list of preferred vendors so that they
- 10:27know like, oh, if I want to show for tile, I should go to this
- 10:29place and go look at tile. I should talk to this sales Rep
- 10:32about tile instead of them going out to maybe, you know, coming
- 10:35back to you is like, yeah, we went profile and we like, you
- 10:38know this tile from this supplier and this one.
- 10:39And so you got like 3 different places you're ordering tile from
- 10:42or they're ordering it from places that you know, or just
- 10:44have like poor customer service or crappy products or or
- 10:47whatever, right? So good designer should
- 10:49essentially take care of this again, but you as a company as
- 10:52well should be providing to your designer or to your client.
- 10:55Like these are the people that we like to work with.
- 10:57This is where we have accounts for this, where we can get
- 10:59discounts from. And so that not that they can't
- 11:01go outside and get stuff, you know, that if they really like
- 11:04something somewhere else, they can get it, but they should be
- 11:07pregaming it so that they're more than likely gonna go with
- 11:11the your preferred vendors. And then before the project
- 11:13starts, making sure someone's going through it line by line
- 11:16allowances versus selections and making updates to the budget or
- 11:21making change orders depending on what's happening.
- 11:23So the clients went and picked their 15, you know, $15 per
- 11:26square foot tile for the shower. Great.
- 11:29But we only had $10 in our budget.
- 11:32So we need to make up that difference, right?
- 11:34And provide, you know, budget update or change order, however
- 11:36you handle that. But that needs to be gone
- 11:39through so that you're getting, you're taking care of these
- 11:42issues and conversations before it becomes critical.
- 11:46Nobody wants to be standing in the living room with their
- 11:48client. Like, yeah, here's the two
- 11:50different types of flooring that we have.
- 11:53And this one is going to take like 4 weeks, but we need to
- 11:56install it in two weeks because our flooring guys showing up,
- 11:59right? But you don't want to be having
- 12:01these kind of conversations on an ongoing project.
- 12:03Everything money wise, selections wise, scheduling wise
- 12:06should be figured out, discussed and ironed out before anybody
- 12:11steps foot on the site for construction and lead time
- 12:14planning, very important that we're checking lead times.
- 12:17If they've ordered some crazy tile from straight from Italy
- 12:20that's gonna take three months, you know, to come across on some
- 12:23ship or whatever, then you need to know about that so and put it
- 12:27in your schedule and plan for it.
- 12:29So checking lead times super critical when going through the
- 12:32selections process. If you've ever been to trivia
- 12:34night, I've got one for you here.
- 12:36What's the average percent of projects go over schedule?
- 12:40You might be thinking, well, pretty much 100% it hit 6777 or
- 12:4587%. What do you think?
- 12:46So it is in fact 77%. So 8 out of 10 projects go over
- 12:52schedule and 85% of projects experience cost overruns.
- 12:56So you can see the bar is set pretty low.
- 12:59And if you get these systems and processes in place, if you as a
- 13:03company can improve upon these numbers, which is again.
- 13:06Pretty pretty low and you can get some.
- 13:09Low hanging fruit of good project management,
- 13:12preconstruction, scheduling and job costing.
- 13:16You are going to be well ahead of all the other builders in
- 13:19your area. Alright, so who wouldn't like to
- 13:22have a crystal ball and see exactly what's gonna happen in
- 13:25the future? Maybe with AI this is gonna
- 13:28become more of a reality. But until then, we've gotta
- 13:31create project schedules. And the schedule is paramount to
- 13:36running an effective project, to being an effective project
- 13:39manager. If you've run projects without
- 13:42schedules, you know how chaotic and how crazy things can get.
- 13:45And really, you're in the dark and clueless about what's
- 13:48happening and what's going to happen.
- 13:50So a good schedule, first of all, that tells everybody what's
- 13:53happening. Second of all, it lets you know
- 13:55ahead of time what things are looking like into the future.
- 13:58So time judgment and buffers, if you're a little bit optimistic,
- 14:01like most people, your time judgment, even if you're very
- 14:05experienced construction is probably not accurate because
- 14:08there's always little things you forget.
- 14:10There's always like variables that can come up.
- 14:12Nobody can predict the future. So that's why you need to have
- 14:15some buffers in place. Buffers are just little windows
- 14:18between major phases of the project, so.
- 14:21Between. Permits and getting the project
- 14:24started have a few weeks in their potentially in case the
- 14:27permits go longer, your guys are finishing up another project
- 14:30can't get started right away, whatever it may be, as well as
- 14:33between trade. So if you have, you know,
- 14:36subcontractors, plumbing, electrical, what have you.
- 14:39Well, how often does 1 trade finish in the next one start
- 14:42perfectly, you know, day after day, very rarely in in my
- 14:47experience. So put a day buffer in there.
- 14:49If you don't use that buffer, great, you're a little bit ahead
- 14:51of schedule and maybe you can bump up the next trader, what
- 14:54have you. You don't want to elongate your
- 14:56schedule like crazy amounts and have huge buffers in there, but
- 14:59small buffers along the way just make things much more realistic
- 15:02because as you know something's going to go wrong, something's
- 15:05going to come up, and inevitably that the schedule is going to
- 15:08get pushed out. Next thing is lead time.
- 15:10So lead times ordering should be in your schedule.
- 15:13I like to see ordering in there if you have cabinets that you
- 15:16know are going to need to be installed in three months and
- 15:19your cabinet manufacturer takes about 6-7 weeks to produce
- 15:22cabinets and you've got to get it in there.
- 15:24System and get the design then 8 to 9 weeks before you need to
- 15:29install there should be something in your schedule that
- 15:31says order cabinets and then it's like Oh yeah I need to
- 15:34reach out to whoever to get the cabinets ordered right that way
- 15:38when it comes down to the day install it's all scheduled and
- 15:41ahead of time low stress you know what's happening critical
- 15:45path and phases so the critical path is things that have to get
- 15:50done before the next thing happens if you're building a new
- 15:53home whether the deck. Goes on during drywall or during
- 15:58landscaping. At the end it's, it doesn't make
- 16:00a huge difference. So something like a deck would
- 16:03not be on a critical path. Whereas plumbing pipes are very
- 16:07critical before you can drywall or do anything else with the
- 16:10project. So knowing what's on the
- 16:12critical path, what's very necessary needs to get done and
- 16:15other things that can maybe slide a little bit or you can
- 16:17move them around to convenient times.
- 16:19That's what critical path is. Phases.
- 16:22I like to see large phases in the schedule and then you've got
- 16:25all your items underneath. That way you can show the client
- 16:29the large phases without having them see all the little
- 16:32individual items. So they're not diving into like,
- 16:34hey, the electrician was supposed to show up yesterday,
- 16:37but they're still not here. You know why, why is why are we
- 16:40off schedule? Right?
- 16:41So instead of that, you might have like a rough end stage
- 16:44where you've got, you know, the client just sees roughens for
- 16:47three weeks or whatever. And then but on your schedule,
- 16:50you're going to see, you know, plumber, electrician, HVAC,
- 16:52whatever it may be. And those phases kind of give
- 16:55you a larger picture of how things are going step by step
- 16:58dependencies. This is probably the main
- 17:02mistake that I see a lot of contractors, project managers
- 17:05not using effectively or not getting 100% right.
- 17:10Everything in your schedule should have a dependency on it
- 17:13so that it's linked with something else in your schedule.
- 17:15Unless it's like your birthday, which I don't think you put in
- 17:18your schedule, but that's like a specific day.
- 17:20Everything else is going to be linked to something else because
- 17:24it has to get done in a certain order.
- 17:26And if you change the start date or you change how long something
- 17:29takes, let's say you're finished, Carpenter took extra
- 17:33amount of time. Well, that means you can't start
- 17:36the next thing, whatever it may be, right?
- 17:38So make sure that every single thing in the schedule, it has a
- 17:41dependency on something else so that when you change one date,
- 17:44everything else changes and you don't have to manually start
- 17:47moving stuff around. Now, trade stacking is effective
- 17:52and sometimes necessary, but it should be a last resort.
- 17:55What I mean by trade stacking. Because you've got multiple
- 17:58trades doing multiple jobs on the same project.
- 18:02If you got a massive warehouse or shopping mall or something
- 18:05like that, yeah, you're going to have a whole bunch of different
- 18:08trades there and on different places.
- 18:09But if you're building like a home or doing a remodel, nobody
- 18:13wants to be working around each other.
- 18:15Like electrician doesn't want to be around the plumber or the
- 18:17HVAC guy, right? So if one has taken longer and
- 18:19you want to get the other one in there, make sure you're
- 18:22communicating that, hey, you guys are running late.
- 18:24I've got to get the other guy in.
- 18:25Tell the other guy, hey, these guys are running late.
- 18:27You're gonna have guys working over each other and try to
- 18:30smooth that situation out. But that's why you have buffers
- 18:32in there. So ideally, they don't have to
- 18:34work on top of each other. They're trying to make up time.
- 18:37Just realize that they're probably gonna be a little
- 18:39pissed off. And you don't want to be a
- 18:41contractor that's always pushing projects and making life
- 18:44difficult for your tradespeople. Yeah, you gotta let them know
- 18:47what's what, and you got to keep them on track.
- 18:49But at the end of the day, they can go work for another
- 18:51contract. And if they've got a choice
- 18:52between, you know, who they're working with, hopefully it's you
- 18:55because you've got schedules in place.
- 18:57You got a plan, you're good at communicating, that's what you
- 18:59want. Another way to make sure that
- 19:01trades are not going, you know, grossly over schedule is get
- 19:06their feedback. So when you're creating your
- 19:08schedule, call your plumber and ask, hey, how long is this
- 19:11project going to take? Well, that's about, you know, 7
- 19:13days of work. Great.
- 19:14Put seven days in there. Put a buffer of an extra day
- 19:17just in case. And later, if they are running
- 19:20over schedule, tell them, hey, you told me this would take
- 19:23seven days. You're at like 9 days.
- 19:24What you know what the hecks going on here.
- 19:26So that way at least they're accountable and you're getting
- 19:29their feedback. If you're like, oh, I think that
- 19:30should take four days. It's a small project.
- 19:32They're telling you it should be take six.
- 19:34Well, they're probably more accurate because they know their
- 19:37guys, they know their schedule, they know what's going on,
- 19:39right? If they're just like way out to
- 19:41lunch, like it's telling you it's two weeks when you know it
- 19:44should be one, call them out on it.
- 19:45Figure out what what's what's appropriate, but get their
- 19:48feedback, get their accountability of how much time
- 19:50they think it should take and how much time you're going to
- 19:52give them to take snowballing. So this is where small little
- 19:56changes in the schedule just snowball into like Major.
- 20:00Delays and projects going over weeks, months, you know,
- 20:03hopefully not years, but weeks and months sometimes.
- 20:05If you're gonna make an adjustment and a schedule, make
- 20:08sure that you. Are.
- 20:10Giving yourself extra time if let's say your plumber took an
- 20:14extra, I'm picking on plumbers here, but it could be anybody.
- 20:16Let's say your electrician does that takes an extra 2 days and
- 20:20now you need to tell the client, hey, we're two days over
- 20:24schedule, whatever. Don't tell your client or two
- 20:26days over schedule. Tell your client, hey, we're
- 20:27three to four days over schedule or whatever, right?
- 20:29And you want to kind of lump it together.
- 20:32So you'd say, hey, you know, the rough in phase, we're a little
- 20:35bit behind. We kind of lost a little bit of
- 20:37time, you know, earlier on. And now in the Ruffins, we lost
- 20:40a little bit of time. So I need to adjust the schedule
- 20:42like an extra week or an extra 4 days, right?
- 20:45That way it's not like, oh, the HVAC guy took a little extra
- 20:50time and now my finisher is taking extra time.
- 20:51And, and like you're always adding like a few days here and
- 20:54there. Put a proper adjustment on the
- 20:55schedule. And that way you can kind of get
- 20:57yourself ahead so that if things do fall behind again, you don't
- 21:00have to adjust it right away. You don't want to be adjusting
- 21:03the schedule every week or two. Plus your sub trades don't wanna
- 21:06see that come over to their desk too.
- 21:08It's like, hey, you're starting on the 16th.
- 21:10Well, no, we lost little time. So you're starting the 18th.
- 21:13Oh, no, we lost little time. And I was going to be, you know,
- 21:15the 20th. And they're like, well, when are
- 21:17we actually starting this project, right?
- 21:19So give yourself a little bit of extra grace there.
- 21:22And then with change orders, ensure that you are accounting
- 21:25scheduled time for change orders.
- 21:27I see this quite often again, where it's a small thing.
- 21:31It's going to take us half a day or it's going to take us a day.
- 21:33Do this tiny change order, then put an extra 2 days in the
- 21:36schedule. Do yourself a favor, tell the
- 21:38client, hey, you know, we need to take care of this change
- 21:40order can be extra 5 grand. It's going to take three days.
- 21:43Even if it's going to take you 2, tell them it's going to take
- 21:453 because you never know, it could go over.
- 21:47And that way again, you can pad the schedule a little bit.
- 21:49And there's a reason behind your change of the schedule instead
- 21:53of just doing a change order. And then you get down later and
- 21:55it's like, we lost like a week of time what happened?
- 21:58And it's like, Oh yeah, well we had like 3 change orders that
- 22:01took each day each, right? So make sure you're putting
- 22:03those in there as well. OK, so now we're getting into
- 22:08the good stuff, the systems, the templates and all that beautiful
- 22:11things and the project template. Having good project templates
- 22:14going to save you hours on every project and a lot of headaches.
- 22:17So what are project template is is just pretty much a snapshot
- 22:21of all the little templates and checklists and things that you
- 22:24need to get into place so that you can just copy it for every
- 22:28new project. First thing is a schedule with
- 22:31schedules. You want to have a pretty large
- 22:33schedule. So if you are a residential
- 22:35contractor and general contractor, then having like a
- 22:39full home build or new home build is ideal.
- 22:42Even if you do remodels and like let's say you're doing a
- 22:45basement, you're still going to use most of the steps that you
- 22:47would have in full. Home.
- 22:49Project, it might just be shorter, maybe you don't have
- 22:51like the site work or something like that.
- 22:53But essentially you've still got all the same phases.
- 22:55So having a project schedule template is super important and
- 22:58helpful. And I know some project
- 23:01management software is you can import a schedule from your
- 23:05estimate. So it's got all like the
- 23:06estimate items you don't like that because every time it's
- 23:10kind of different and I prefer to have something more templated
- 23:15if you will. But if it's a very like one off
- 23:18remodels or like custom projects, then you may be better
- 23:21off pulling in schedule from the actual estimate items.
- 23:26So either. Way you don't want to be doing
- 23:28it manually from the. Start Quality and procedure
- 23:31checklist. So these are your quality
- 23:32control checklists. Quality control checklists are
- 23:35one of the easiest things to implement and one of the most
- 23:38impactful as well. It's really low hanging fruit if
- 23:41you don't have good quality control.
- 23:43Essentially you're gonna have lists of everything that needs
- 23:46to be checked to make sure that it's 100% complete and proper.
- 23:50These are things like foundation framing your ruffins.
- 23:54You should have quality control checklist for all the different
- 23:57stuff that goes into a project and that's being followed.
- 24:00I had a client, we're talking with them.
- 24:02We have implemented a quality control checklist for his
- 24:04project managers, talking with him, asking him, hey, how's it
- 24:07going with the quality control stuff for guys following it?
- 24:09Is it being effective? It's like, yeah, I couldn't
- 24:11believe it. I called one of my project
- 24:13managers were finishing up a host and I asked them, you know,
- 24:16what's the timeline? When do you think we can be
- 24:18done? He's like, we're pretty much
- 24:20done now or probably be like a day or two.
- 24:22And typically it took them weeks at the end of a project to
- 24:26figure out and finish up and take care of all those little,
- 24:28you know, tiny things that that you need to finish on a project
- 24:31because they had good quality control checks in place.
- 24:35By the time they. Got to the end of the project
- 24:37was just finished off a few little minor things, smooth
- 24:39sailing. Turn it over to the client
- 24:41procedure checklist. These are things usually like
- 24:44project start, project closeout. Those are the big 2.
- 24:46So project starts, what do we need?
- 24:49Site signs first save material, porta potty like fencing,
- 24:53whatever it may be, right? Checking off everything and as
- 24:57well as closeout. You know what's all this stuff
- 24:59that we need to to close off a project?
- 25:01So standard folders and files. This is usually how I can tell
- 25:04how organized the company is if I take a look at their file
- 25:07management system. You've maybe heard this saying
- 25:10before, if you go to a restaurant and the bathroom is
- 25:12dirty, probably the kitchen is dirty as well.
- 25:15If I look at a general contracting company and their
- 25:18file sharing system is a bit of a mess and things are all
- 25:21numbered and named different things and unorganized and
- 25:24clients have different folders here and there, I can probably
- 25:27guarantee that the the management of that company is
- 25:29also fairly sporadic and unorganized.
- 25:33So do yourself a favor, every client should have a folder.
- 25:37They should all be named the same way, like clients name the
- 25:42address of the project and maybe like what type of project it is
- 25:46or something like that. But anyways, every folder should
- 25:49have the client's name and address on it so it's easy to
- 25:51search for. Then inside that folder you
- 25:52should have a standard set up, plans, estimates, site
- 25:56documents, change orders, financials, whatever it may be.
- 25:59But you're going to have a couple of subfolders and in
- 26:02there you're going to have their selection sheet.
- 26:04If it's not in your project management software, you're what
- 26:06to expect documents in there. You can share access and
- 26:09permissions to it with anybody and your team and the client
- 26:11who's going to need access to it.
- 26:13So everybody knows anything to do with this project.
- 26:16All the files are in this location.
- 26:18If we get new files, they need to go there.
- 26:20So everyone has Open Access. It's organized and that is
- 26:24something that's easy to set up. You just template it, copy it
- 26:27for every new client. OK, now we're going to be
- 26:29talking about project management software, and I get this
- 26:32question all the time. Which software should I use?
- 26:35What do you think about this software?
- 26:36This software could be telling you specifics here today.
- 26:39I do have other videos about that if you want to go, but this
- 26:41is what you should be thinking about for Project Microsoft.
- 26:43You probably already using some sort of software.
- 26:46Most companies are nowadays, there's so many new ones coming
- 26:49out all the time. But this is what I look for and
- 26:51what you should be thinking about because maybe the software
- 26:54using right now is not going to serve you well into the future.
- 26:57Or if you're a little frustrated with it, look at something else
- 27:00that has this. So first thing is ease of use,
- 27:02because it's not just you that's going to be using it, it's going
- 27:05to be your other project managers and everybody else on
- 27:08your team, possibly your clients experience as well.
- 27:11So make sure it's easy to use, it's intuitive, and you're not
- 27:14getting super frustrated with it because if you're getting
- 27:17frustrated with it, you can guarantee everybody else on your
- 27:19team is going to get frustrated with it as well.
- 27:21Speed is huge. I hate sitting around and if I
- 27:24click a button, it's got to think and think and bring me to
- 27:27another screen. Or even if things are just
- 27:29unorganized, it takes forever to go change settings or whatever.
- 27:32So how quick is this system? Is it responsive?
- 27:34Does things move quickly? That's super important because
- 27:37it's not just you as well, like your whole team.
- 27:39If it's slow for one person, it's wasting everybody else's
- 27:42time as well. And it's integrations.
- 27:45And if you do me a favor, make sure that you, the software you
- 27:49get has an open API, which simply means that it can
- 27:53integrate with any other open API software.
- 27:56Most software has integrations that'll be inherent to it, like
- 28:00QuickBooks or maybe a HubSpot, something like that.
- 28:04They've usually got a number of different programs that they
- 28:06link to and integrate with, but an open API integration means
- 28:09that they can essentially link with any other software.
- 28:13So we can move information from one software the next because
- 28:16you're probably going to update your software as every now and
- 28:18then and you want everything to move together.
- 28:21It's really important because you do not want to be having to
- 28:24do things manually or be like trapped where you have to use
- 28:29this software because it integrates with this software
- 28:31and you kind of want that integration, but you're not
- 28:33super happy about the software. So integration is a really
- 28:37important thing to check out. Next thing is support.
- 28:40How good is their support? Most of them.
- 28:43The Ichabods, which work fairly well, but can you get someone on
- 28:47the phone? Do you can get someone like that
- 28:49will e-mail you or you know, do a live chat with you?
- 28:54Do they have videos inside their software?
- 28:57I like to see that where inside the project management software
- 29:00it has training videos. If you're in the estimation
- 29:02module, there should be a little training video.
- 29:04Here's the training video of how to use this module.
- 29:06So it's super easy because the last thing you want to do is be
- 29:09training your staff on how to use the software.
- 29:11You should have like talk with one of you know, the softwares
- 29:15people or go watch these videos. They should be able to train
- 29:19themselves more or less, and you're just helping them with
- 29:21the process of the way that you want to run your company's track
- 29:24record. Another important thing, as I
- 29:26mentioned, lots of new software nowadays seems like there's you
- 29:29know, I see it pretty much every day, every week some new
- 29:32software someone like have you seen this?
- 29:33Have you checked this? Like, no, something that has a
- 29:36track record, if it is new, IT may be good, but in my
- 29:40experience, until the software's been around for at least two to
- 29:43three years, it probably hasn't ironed out the kinks.
- 29:46It probably hasn't implemented all the different functions that
- 29:49it should. So I wouldn't be a little bit
- 29:52hesitant to get on with a new software that's just getting
- 29:56going. That's me.
- 29:57Figure it out, but just realize that if you're making an
- 30:00investment for the long term, you're thinking long term.
- 30:02You probably want something that is been around for at least a
- 30:05little while. The last thing is the
- 30:07investment. How much money is it going to
- 30:09cost? In my opinion, the investment,
- 30:12as long as it's reasonable is going to be worth it.
- 30:14And you know, I wouldn't make a decision based off of all this
- 30:17one's $200 a month, this one's $400.00 a month.
- 30:21I'm gonna go with the $200 a month because it's cheaper.
- 30:23The $400.00 a month maybe a much better software, the $200 a
- 30:26month, maybe much better software.
- 30:27But make your decision based off of the software.
- 30:30How good is going to fit with your company, the feel you get
- 30:32from it? Because a few $100 a month is
- 30:35nothing compared to the time savings and just the less stress
- 30:38that you're going to have with using a proper good software
- 30:41over something that may be just cheaper.
- 30:46There's a saying in aviation called fly ahead of the plane.
- 30:50And that is the thought of the pilot as they're flying the
- 30:54plane to actually think of themselves as being outside of
- 30:57the plane and in the future in like in the out out in front of
- 31:03the plane. The reason they want to do that
- 31:04is because they don't want to be reactive and just think about
- 31:08what's happening right now. They want to especially, you
- 31:10know, a jet fighter, they're going to be in another mile
- 31:14within seconds, right? So you always want to be
- 31:16thinking, especially things move fast in construction projects,
- 31:19you go, a lot of them go thinking ahead of the plane and
- 31:21stay in the future of what's happening.
- 31:24So you're less reactive and you're being proactive and
- 31:27planning. So and this saves months of time
- 31:29because you're always thinking like the next day, the next
- 31:31week, the next month, what's coming up?
- 31:33What do I need to prepare for? And the way you do that is by
- 31:36having a really good project start checklist.
- 31:38So we did all that preconstruction.
- 31:39Now we getting into the checklist.
- 31:41As you can see, there's so much planning that happens on a
- 31:45project before you actually start your construction and
- 31:48having a good checklist in place, make sure that your guys,
- 31:50you know, mobilization, what are they going to need for materials
- 31:53is ordered. What about tools and equipment?
- 31:55Have you communicated with the trades, with your with your
- 31:58laborers, with everybody that needs to $10 million
- 32:00construction businesses do this 2030 million, $100 million
- 32:04construction business do this. The guys that are scratching it
- 32:06out at 123 million, they're the ones who are scrambling and
- 32:09don't put this kind of thought or attention into it.
- 32:12And it shows. And so do yourself a favor, if
- 32:14you want to grow and scale to, you know, 8-9 figure
- 32:18construction business, you need to be able to fly ahead of the
- 32:21plane and really make sure every project is you're moving in with
- 32:26momentum and everything is set in order.
- 32:28So it's just follow the plan essentially throughout the
- 32:32project. And then another really useful
- 32:34exercise that I did as a project manager, I learned this from a
- 32:38guy that was really on the up and up, do a RAID review every
- 32:44week. And I'm an optimist and you may
- 32:47be like this too. Projects running, things are
- 32:49going good, you know, just kind of getting in in the groove and
- 32:52the rhythm, but you're not really thinking critically about
- 32:54what could go wrong or the risks or, or things like that.
- 32:56So rate review is risks, assumptions, issues and
- 33:00dependencies. So what risks are there?
- 33:02Is there bad weather coming up is, you know, this subcontractor
- 33:06didn't really do a good job on the last project, so they could
- 33:09be a risk on this project too. Assumptions.
- 33:11I'm assuming that, you know, material order is going to show
- 33:15up on Friday, but I haven't heard them both them for a week.
- 33:18Well, maybe you should just send them a quick e-mail and just
- 33:20double check to make sure that they have the right information.
- 33:23So what are you assuming is going to happen or assuming
- 33:25about the project that you haven't really double checked
- 33:28issues? Is there any lingering issues?
- 33:30Those little things that's not really important yet.
- 33:33We don't need to worry about it. I've got other more priority
- 33:36stuff which is good on you, stick to your priorities.
- 33:39But those little issues, those little small things can come
- 33:42back to bite you in the ass later on when you are at the end
- 33:45of the project or maybe you've got a critical stage like
- 33:48inspection or drywall is going on.
- 33:50And now it's like, oh, I've got to scramble to get someone here
- 33:53to fix those little things. So what issues have not been
- 33:56taken care of or could come up that need to get taken care of?
- 33:58And then dependencies, who are you depending on that's critical
- 34:01for the project? Maybe you're depending on the
- 34:03designer to get a certain schematic or, or or selection in
- 34:08place and you're approaching that deadline, you know, knowing
- 34:11what dependencies are going to maybe hold you back on a
- 34:14project. And by doing this every week,
- 34:16just a quick 10-15 minute review going through like what I said
- 34:19there, and you can pick out and save yourself a lot of time for
- 34:23headache and frustration in a project and be flying ahead of
- 34:27the plane. Alright.
- 34:30So now we're actually moving into like doing actual work on
- 34:33the project. And I hope you haven't talked
- 34:36your ear off yet about all the pre planning and preconstruction
- 34:39and checklists and templates, all that stuff because it's it's
- 34:43actually essential. And that's probably where you're
- 34:45going to spend 50 to 70% of your time setting up that system.
- 34:50If you get that dialed in, the rest is, is easy and the walk in
- 34:54the park essentially. And if you've ever managed a
- 34:56project, very rarely as a walk in the park, you do the other
- 34:59stuff, it becomes crazy easy compared to not doing it.
- 35:03Now, if you want help with this, I know that like I said, there's
- 35:05a lot that goes into really nailing down these systems.
- 35:08Make sure all the operating procedures, the training, the
- 35:11software, everything is really working together.
- 35:14If you need help with this, look in the description below.
- 35:17There's a link for to work with us as well as a free course on
- 35:22systemizing your business. Let us help you.
- 35:25We've done this with countless other general contractors.
- 35:28Help them build those systems. It's what we do, making this
- 35:31super easy for you. Skip all the trial, error and
- 35:34frustration. Reach out to us.
- 35:35We'd love to talk to you about how to build and scale up your
- 35:39construction business. All right, proper site
- 35:41protection this is. Another kind of rookie thing
- 35:44that I see with contractors that are not experienced or are not
- 35:49flying ahead of the plane as I mentioned is having good site
- 35:51protection and it's one thing to.
- 35:53Have the site protection on site.
- 35:55It's another thing for your people to be using it
- 35:57effectively if you've ever had a scratched floor where you needed
- 36:00to RIP out a bunch of boards. You know, put in a new.
- 36:02Piece like how annoying is that? Or guys leaving their tools on
- 36:06the countertops and it just looks like a mess or they get
- 36:08things dirty that doesn't need to.
- 36:10Or you got to get your painter back there and there's big
- 36:11scuffs all over the walls. Set up ram board on the floor.
- 36:14It's any high traffic areas, holy walls to make sure dust
- 36:18isn't getting anywhere. It's not any client items.
- 36:20If you're doing remodels and the client has valuables or
- 36:23keepsakes, tell them in the what to expect document.
- 36:26If you leave anything valuable or that you don't want damage
- 36:29inside the construction zone, we are not liable whatsoever for
- 36:33any damages. So you need to get it out of the
- 36:36area and provide for them for this.
- 36:38If you want our guys, I, I wouldn't get your guys to help
- 36:40move it, but maybe you have a moving company, you know, let me
- 36:43give my moving company in here. They will move this, put it in,
- 36:46you know, AC can or the garage or whatever, right.
- 36:49So make sure anything valuable is out of the out of the picture
- 36:52signage, put up site signs, you know, hard hat area, PPE,
- 36:56whatever, right, brooms and bins.
- 36:58I don't know how many sites have gone to where you hear the
- 37:01contractor complaining and the things are dirty, but there's no
- 37:05garbage bins around, there's no grooms.
- 37:08You know, guys, you're using plywood to scrape some stuff off
- 37:11the floor and what have you, right?
- 37:13Do everybody a favor, buy some brooms, buy some garbage bins,
- 37:17whatever. People need to clean up garbage
- 37:19bags, put them on site, put your sticker on them so they know
- 37:23that it's from your company and tell them no excuses.
- 37:26Your guys need to clean up every day.
- 37:28There's, you know, they've got everything they need, right?
- 37:31So make it easy for them to keep the site clean.
- 37:34Security, big believer in having security cameras.
- 37:37It's easier than ever. You can go grab them on Amazon
- 37:39or wherever, put a little security camera up on the site.
- 37:42You can see when guys are coming going and makes it more secure.
- 37:45It deters theft, all those kind of things.
- 37:47Yes, you may need to install Wi-Fi or whatever and then
- 37:50expense this to the client. Tell the client, you know, we're
- 37:53setting up a security system on here.
- 37:55We do this for all of our clients.
- 37:56It's a $50.00 a month charge or whatever.
- 37:58Like doesn't have to be super expensive, but essentially
- 38:01they'll cover the cost of your security should be factored into
- 38:05the pricing of the project. And you know, less, less
- 38:08materials getting stolen, less guys showing up Willy nilly.
- 38:12Or you can always check the progress.
- 38:13If you're on vacation, you can see what's happening, right?
- 38:17You're project manager should whoever's management project
- 38:19like actively should be worried about that.
- 38:21You shouldn't. But anyways, you get my point.
- 38:23No house parties. This is where if you've ever
- 38:26been to a party, you know the kind where you show up and the
- 38:31house is a complete mess. It's kind of smelly.
- 38:33People are going everywhere. You know, typically your teenage
- 38:36years is probably what you're thinking back to maybe maybe
- 38:39recently, but how likely are you to take off your shoes?
- 38:41How likely are you to to put your your can, you know, in the
- 38:45garbage or the recycling or whatever?
- 38:47Probably unlikely because the rest of the house is a complete
- 38:49mess. Everyone's partying and no ones
- 38:51given, you know, a rats ass. Essentially change that to when
- 38:54you go to like a nice party. Everyone's very organized,
- 38:58everybody's taking their shoes off.
- 38:59The house is very clean, everything's in place, they've
- 39:02got the nice, you know, trays out and everything.
- 39:04Are you likely to just walk in with your shoes and and throw
- 39:06your garbage everywhere? Not really.
- 39:08So you're your sites are gonna be the same way.
- 39:11If a sub trade shows up to a site, last trade kind of left
- 39:14their wire strippings or framing junk everywhere, whatever it may
- 39:19be, that next tree is not going to clean up after them and
- 39:22they're going to think that that's acceptable.
- 39:23It was a mess before we showed up.
- 39:25You know, what does it matter if I leave a few coffee cups here
- 39:28or, you know, a pile of garbage in the corner or whatever,
- 39:30right? So just consider that everybody
- 39:33needs to have that high standard.
- 39:35And if they don't reach that standard, tell one of your
- 39:37laborers go clean up. Let this expectation with your
- 39:40trades, go clean up that house and then back charge your
- 39:43subcontractor 100, two, $100, whatever it costs you to send a
- 39:47laborer to go clean up their mess.
- 39:49OK, now you've nailed down the preconstruction, getting
- 39:52everything in place, planning everything out, and we're going
- 39:55to move on to what happens during actual construction.
- 39:58So what's the secret behind elite projects?
- 40:01What's the difference between doing no small remodels or
- 40:04cookie cutter houses to some big mansion like this or high high
- 40:08end, you know, commercial projects?
- 40:10Big difference that it boils down to is communication.
- 40:14The difference between large elite projects is how much
- 40:16communication and the higher the higher level of communication
- 40:20that happens on those types of projects.
- 40:24First part of nailing your communication is going to be
- 40:27impressing clients with luxury communication.
- 40:31May not have heard that before, but as a client, think about if
- 40:35you go to do a really fancy hotel, you're expecting a
- 40:40certain level of communication and organization from that
- 40:44hotel, right? If you go to some cheap motel on
- 40:48the edge of town, you're not really expecting too much.
- 40:50So if you want to level up your business, you've got to nail the
- 40:54type of communication that you're having with clients now,
- 40:58the art of written communication.
- 41:01How many times have you had a conversation with a client or,
- 41:05and even maybe some text messages and later the clients
- 41:09like, no, that's not what I thought or that's not what I
- 41:12said, or you know, I thought you meant this or whatever, right?
- 41:15So start writing down important notes.
- 41:18If you've, if you talk to the client, hey, we're going to be
- 41:20doing a change order. We've got to make these changes.
- 41:22It's going to be about this much.
- 41:23Make sure right after the call you're sending an e-mail with
- 41:27just some very small amounts of like information, but the very
- 41:31pertinent notes like we're doing a change order.
- 41:33This is the reason. This is what the expected cost
- 41:35is and and can you please reply to confirm or whatever and then
- 41:39you'll send a more detailed change order later.
- 41:42But this way there's just. No confusion, and if there is,
- 41:45you always have something to go back to in an e-mail.
- 41:48Emails are great too because you can search them, whereas you
- 41:50know a text message you got to be scrolling through it.
- 41:52Ideally, you've got some sort of CRM that also manages
- 41:55communication, but get in the habit of making sure that
- 41:58anything really important is written down somewhere because
- 42:02it's gonna make you actually have to think about what you're
- 42:05writing and also make sure that both parties know what's going
- 42:09on. And then a dashboard is
- 42:11essential for clients to really feel like you have a business
- 42:16that's above and beyond, right? Not a lot of, especially smaller
- 42:20residential contractors have really good dashboards or any
- 42:23dashboards at all. And I get it.
- 42:25I know why because it's not the easiest thing to keep in place
- 42:28and you have to be on top of your game.
- 42:30But if you really want to level up as business and you want
- 42:32those high-end clients, you need to provide a little bit more.
- 42:35And the dashboard should have quick links to any files, to any
- 42:40files that they have. It should have the schedule as
- 42:43well as ideally some financial information.
- 42:45The finances don't always want to be on on the dashboard
- 42:48because it's a little tricky to kind of keep that up to date
- 42:51sometimes. But the more information you can
- 42:53provide to the client on a dashboard, the less they're
- 42:56going to need to call you and ask you, hey, what's happening.
- 42:59Setting smooth managing expectations are the key to a
- 43:04good client relationship as a project manager, letting them
- 43:07know what's happening. Hey, we've got guys showing up.
- 43:11It's gonna give you messy. And This is why you can expect
- 43:14or hey, we are getting into this phase of the project.
- 43:18There may be something that unknown's come up just to to
- 43:21give you a heads up, right. So always tell them what's
- 43:23happening next and set those expectations so that they're not
- 43:26disappointed or they've, you know, clients.
- 43:28If you leave them to their own devices, they're gonna have
- 43:31expectations that are super high.
- 43:33Like they want to know exactly what's going on.
- 43:34Everything's going to be on schedule, on budget and
- 43:37everything. Tell them from the beginning,
- 43:39hey, 5% contingency is typical for projects.
- 43:43You know, budgets change, there's change orders, things
- 43:45that come up, not to scare you, but just so that you're prepared
- 43:49and that you have the expectation that we've set the
- 43:51budget. But often there are small things
- 43:54that could increase that budget, you know, over the extent of the
- 43:56project. And a great way to do this in a
- 43:58systematic way and a good system you need to put into place in
- 44:02your business right now is start sending weekly updates to the
- 44:05client. So every week you're going to
- 44:07send them an e-mail and you're going to say what got done this
- 44:09week and what you're going to do next week.
- 44:11This gets the client in the habit of opening your emails.
- 44:14Ideally you'll do it on Friday or something like that so you
- 44:17don't get a bunch of calls over the weekend when they've gone to
- 44:20site or asking what's going on and just tell them, hey, this
- 44:22week we got the drywall board on her insulation passed
- 44:27inspection. We put the drywall boarding on.
- 44:29Next week we're going to finish the boarding and start doing
- 44:32the, you know, mudding, taping, whatever, right?
- 44:34So just play by play and then some pertinent notes.
- 44:37So it's, you know, fixtures are on back order or we had a small
- 44:41change order for this or hey, if you notice there's some extra
- 44:44windows on site. The supplier sent us ones that
- 44:47weren't the right size. We're going to return them for
- 44:50refund. There's not gonna be any extra
- 44:51cost for it, whatever, right? So set the expectations, tell
- 44:54them what's happening. And this way they are not going
- 44:56to be like wanting to call you every time something comes up or
- 44:59they don't know what's going on. They know every week, OK, you
- 45:02know, makes sense. This is what's happening, right?
- 45:04And then the final thing to talk about with communication is
- 45:07obviously what do you do when you have difficult clients,
- 45:11those clients that are digging into all the little details,
- 45:14those clients that are just giving you a hard time or maybe
- 45:17their uncles, brothers, cousin people was a builder or home
- 45:21inspector and they're thinking that you're doing everything
- 45:24wrong on site. So the best way to kind of nip
- 45:27this in the bud is to be honest, even with bad news.
- 45:31So if something comes up on site, you don't need to tell
- 45:33them PrettyLittleThing that goes wrong, But if it's something
- 45:35that's gonna affect them or they're gonna notice or even if
- 45:38they're not gonna notice, but get in the habit of calling them
- 45:41when you, when there's bad things come up.
- 45:43Hey, you know what? We weren't able to meet the
- 45:46deadline for this or hey, you know, one of our guys left
- 45:50whatever window open and there's a raccoon in your house.
- 45:53You know, whatever it may be, you don't make yourself look
- 45:56bad, but at the same time you want to be honest and upfront,
- 45:58but also call them with good news.
- 46:00So don't just call them when something bad happens cause
- 46:01they're thinking every time you call them, it's like, oh, what
- 46:04now? Wait, what now?
- 46:05So hey, we just installed the cabinets.
- 46:06Everything's looking really good guy was able to get done in a
- 46:09day earlier. Here's some pictures of it,
- 46:11right? So show them good news, tell
- 46:13them the good things that are going on.
- 46:14And then if you have a few like odd things that come up that
- 46:17are, you know, bad news or unfortunate, it's, it's just,
- 46:20you know, no big deal. Essentially.
- 46:21Next one is get your head right. It can be stressful.
- 46:24It can be really annoying to have to deal with the bad
- 46:28client. You know the ones, I'm sure
- 46:30you've dealt with them before where you just cannot please
- 46:32them. Something's gone sour with the
- 46:35build. You need to get your head in the
- 46:37right space and justice. Realize that you need to frame
- 46:41it as in they've hired you to do a job.
- 46:43You need to be professional, even if you may be blowing
- 46:46gaskets and getting red in the face because you're just, you
- 46:48know, upset and and done with this client already.
- 46:51You need to take a breath, let it go and just do your best to
- 46:54help facilitate that relationship.
- 46:56Get to the finish line or whatever you need to do and
- 46:58hopefully just finish the project off as best you can and
- 47:01communicate that with them. Just be upfront again with being
- 47:04honest. You know what, I know things are
- 47:06a little jaded. We haven't had the best
- 47:07communication, but we made mistakes.
- 47:09You know, if you made some mistakes and I'm hoping we could
- 47:12put that behind us. I do want to just finish this
- 47:14project. I understand we, we may be on
- 47:16different, you know, ideas of what everything needs, but at
- 47:18the end of the day, we're going to provide you with a good
- 47:20quality project. And I hope that you will be up
- 47:24front with you and I hope you'll be up front with us and we can
- 47:26get this done in a in a civil kind of manner.
- 47:29So just let them know. The last one is stop holding the
- 47:32bag. This can be a little difficult
- 47:35with to be commercial clients and certain parties where it's
- 47:40where there's a lot more paperwork involved.
- 47:42But if you're a residential contractor, you should never be
- 47:45left holding the bag where your client has holding money over
- 47:48top of you. They're saying like, oh, we're
- 47:50not going to pay you until you get this thing done or you fix
- 47:52this or, you know, you're off schedule.
- 47:54So we're we're gonna wait, you know, a couple of months or a
- 47:57week to to pay you or whatever, right?
- 47:58You never want to be in that situation.
- 48:00You should be collecting a deposit up front and you should
- 48:02always have money in the bank from the client so that they are
- 48:05financing their project. You should never be putting your
- 48:07own companies money into their project when at all possible.
- 48:11So you get a deposit first day on site, you know, first week.
- 48:15Once that week is done or the first two weeks, you are then
- 48:18invoicing client for the next, you know, payment so that you've
- 48:22always got a deposit and you're taking essentially from the
- 48:25deposit. And there's never you're never
- 48:27behind on a project where you're putting your own company's money
- 48:30into the project. This puts you in a really bad
- 48:32position with the client and the client can then sort of jerk you
- 48:36around as far as waiting for you to, you know, get some little
- 48:40thing done or some minor stuff and and say that it's reason not
- 48:44to pay you not have thought of it specifically.
- 48:48But like I said, communication is the key to project
- 48:52management. Communication can smooth out
- 48:54rough spots. It can get people motivated.
- 48:56It can take care of clients and everything.
- 48:58Now we're talking about the field crew communication.
- 49:01So this is probably the most fun one.
- 49:03I mean, these are your site guys, your laborers, your
- 49:06carpenters, whatever your your in-house carpentry team.
- 49:10And they can be a lot of fun, but they can also take a lot of
- 49:13work to communicate with, as you probably know.
- 49:15So how do you get some communicated with and make sure
- 49:18they're communicating with you, which is it's always a two way
- 49:21street. So every day make sure that they
- 49:24know specifically what the goal is and the instructions.
- 49:27And you as a project manager need to be able to lead leaders
- 49:31because you're going to have a site manager or superintendents
- 49:34depending on the structure of your business.
- 49:36And you're going to make sure you're going to have to make
- 49:38sure that they whoever is managing the site to know they
- 49:42need to be instructing everybody on exactly how to do everything.
- 49:46And then also, what is the goal today?
- 49:47So we're gonna stand these walls today or we're gonna, you know,
- 49:50get these cabinets installed today.
- 49:52They'll usually set goals that are unrealistic, as is often the
- 49:56case, but at least it gives them something to work towards.
- 49:59And again, they're setting expectations.
- 50:01So setting expectations for client key, but also with your
- 50:04subcontractors and your field crew is also very important.
- 50:07So make sure there's always a goal that to work toward report
- 50:11logs. So every day site manager,
- 50:13Superintendent should be doing a daily report.
- 50:17This is, you know what got done today, this is who showed up.
- 50:19These are the materials that you know, whatever it is, it doesn't
- 50:22have to be big. It can be very short.
- 50:24And nowadays with your phone, you can essentially talk into AI
- 50:28and it'll just send off a communication or put it into
- 50:32text. And it's really easy way, hold
- 50:34down, you know, Chapt, Gemini, whatever.
- 50:36Today we did that and then you just copy that, put it in your
- 50:40site, report in the project management software, super easy.
- 50:43And that way you've always got a track record and it keeps people
- 50:46up to date on what's happening. And then finally, time tracking,
- 50:49time tracking, if you're trying to start this for the first
- 50:52time, can be very frustrating with your site guys, because
- 50:56guys don't check in. They wait till, you know, one
- 50:58week or two weeks out, all pay days tomorrow.
- 51:01So I gotta get all my hours in. How many hours did I work last
- 51:03Monday? I was at this job, right?
- 51:05So having up to date time tracking, make sure it's
- 51:07accurate is super critical. I like to be able to have the
- 51:10everybody to manage their own time.
- 51:13And I know that can be some trust issues there where it's
- 51:17like, I don't really want my guys to be putting in their own
- 51:20time. They're gonna exaggerate it or
- 51:21what happened, whatever. So if that's the case, you can
- 51:24have the site manager review everybody's time daily or at
- 51:28least once per week just to make sure everyone is is accurate.
- 51:31Or you have the site manager fill in everybody's time or, or
- 51:34the Superintendent. But that can just kind of cause
- 51:37problems in and of itself. I know guys that just have
- 51:39everybody write down their time on site because it keeps them
- 51:42more honest. So do what you want, but ideally
- 51:45everybody is tracking their own time through an app.
- 51:47So you know, what project were on, what kind of tasks that
- 51:50they're doing and when everyone gets in the habit, it's not
- 51:53really a difficult thing. Now, as a project manager, you
- 51:57need to ensure that there's on site leadership.
- 52:00And I've seen this happen very many times where my guys just
- 52:04don't follow the instructions or my guys slack off, You know,
- 52:07like this having some fun on site, which you want guys to
- 52:10have fun and be enjoying their work.
- 52:12But at the same time, if they're taking, you know, 1 1/2 hour
- 52:14lunch breaks, they're going to pick up materials every single
- 52:17day and kind of slacking off. Often it comes down to no
- 52:20specific leadership on site. And I've again, I've seen this
- 52:23where you may have like two or three people in a crew and
- 52:27everyone is like kind of the same level or very experience.
- 52:31And and there's no clear like this is the person in charge,
- 52:34Especially when you've got people kind of moving around to
- 52:38a lot of different sites and you may not have guys on one site
- 52:40for a long time. So you need to be very clear of
- 52:43like this person is responsible. You are the site leader and I
- 52:47expect you to do this and this and this.
- 52:49So very clear on the structure of like who's in charge and
- 52:53everyone. You know, if you've got
- 52:54problems, you go to that person, that person then then goes to
- 52:57you or, or what have you. And beyond that, you really need
- 52:59to play to people's strengths because depending on the size of
- 53:03your business, but if you've got even just like 3 to 510 twenty
- 53:07different laborers, carpenters, you know that some are better at
- 53:11finishing, some are better at framing.
- 53:13Some are just your get in there and swing a sledgehammer and
- 53:15demo, demo a house in the day by themselves kind of guys.
- 53:19So you want to put them in places that make sense and move
- 53:22them around to play to their strengths.
- 53:25Materials is another big pain point and being very clear with
- 53:29communication and the leadership of who is able to go get
- 53:33materials, what facilitates a material run, who should they be
- 53:37calling for? Materials needs to be very, very
- 53:39clear because as you know, you can eat up two hours of driving
- 53:44to Home Depot or Rona to go pick up a $5 part and you spent 90 or
- 53:50$100 on labour for a $5 part that maybe could have waited a
- 53:54day or two and they could have picked it up with something
- 53:56else. So being very clear to anybody
- 53:59that's going for deliveries of like, you know what it, it costs
- 54:02anywhere from 100 to $200 just for you to go there with the
- 54:05time, the gas, the vehicle, whatever it is.
- 54:09So we need to start doing deliveries, you know, once every
- 54:12couple of days or what have you. And then having a specific place
- 54:16for a running list as well. So where do you list out the
- 54:19materials? Ideally you have in a project
- 54:21management software in a notes or tied to specific projects
- 54:25where if you need something for this project, here's the things.
- 54:28If you need something for just general for the trailer or for
- 54:32just site materials or tools, you know this is the thing.
- 54:36So list for tools as well materials and then make sure
- 54:39that if you do have someone that's running around, get all
- 54:42the materials for three different sites and have them go
- 54:44and drop them off right. If you're big enough company,
- 54:47you could probably have someone dedicated to this potentially
- 54:49like a clean up Gopher type of person, but have it very
- 54:53structured and communicate that no matter what we cannot be
- 54:57going from to go get materials every single day.
- 55:01Now, the last group of people that you need to be
- 55:03communicating at a very high level with your company is
- 55:05subcontractors and professionals.
- 55:07These could be architects, designers, that kind of thing.
- 55:10And what what I'm talking about this communication, like I'm
- 55:12giving you some tips and tricks and ideas, but what you need to
- 55:15do is put this in a complete system and have it as a process
- 55:19of procedure, just the way that you do business.
- 55:22It's one thing to communicate this to your people, which you
- 55:24need to, but you need it documented somewhere and
- 55:27training in a handbook, whatever.
- 55:29And I like to have a subcontractors handbook that I
- 55:32give to every subcontractor so that all of this stuff is is
- 55:36detailed in there and they know exactly what to do.
- 55:40So and that's part of the what to expect.
- 55:41So quality, what kind of quality do you expect from them?
- 55:45Specific things like level plum, what you know, if you've got
- 55:501000 square foot floor, how far out of square can it be for a
- 55:55framer or for a concrete person? So specific levels of quality of
- 56:00what's expected cleanliness, you know, broom swept at the end of
- 56:03the day, full clean at the end, all garbage in a nice neat pile
- 56:08outside or in the dumpster, whatever.
- 56:11Me and and communication what to expect.
- 56:13I expect you to communicate when things go wrong.
- 56:16I expect you to communicate when you're going to start.
- 56:17I expect you to communicate if you're running behind all of
- 56:20this kind of stuff. Very clear on expectations stuff
- 56:24is scheduling. And the way that I'd like to do
- 56:28scheduling that I found to be the most effective is you want
- 56:31to send an e-mail, a call, and if they don't pick up the phone,
- 56:34leave a voice memo until you've actually talked with someone and
- 56:37confirmed, hey, are you starting on Tuesday?
- 56:40What time are you guys gonna show up, whatever they might
- 56:43say, but you need to confirm through a call, through voice
- 56:47exactly what day they're going to be there.
- 56:50And the scheduling, because I've seen it all too often where
- 56:53people are like, oh, we have automations that go out so they
- 56:56get automated, you know, messages and automation does
- 56:59does not have any weight to it. When you get an automation like,
- 57:02oh, you're starting this, it's like, well, someone's willing to
- 57:04send you a specific e-mail or phone call, they're just not
- 57:08gonna register. It's like, yeah, well, it's a
- 57:11notification, but I didn't know that they actually wanted us
- 57:13specifically that day. And then for scheduling, as a
- 57:17project manager for trades, you wanna be thinking one to two
- 57:20months out at all times and planning what's going to be
- 57:24happening. So every one to two months out,
- 57:26every subcontractor should have a heads up of, hey, this is when
- 57:29we're starting sub. Subcontractors may even need
- 57:31three months depending how busy they are.
- 57:32And then the week before they're ready to start again.
- 57:35Phone. Well, how are you guys doing?
- 57:37Are you going to be done your next project?
- 57:38You have guys lined up or starting this day?
- 57:41Do you have your materials and things like this?
- 57:43You really need to kind of dive into them.
- 57:45Not just like, yeah, OK, we'll be there.
- 57:46But like how many guys you gonna have?
- 57:49Do you have your materials ready?
- 57:51That kind of thing. So you can dive into it a little
- 57:52bit so that they know like, hey, this guy's on the ball.
- 57:56You must make sure that we've got the right people and the
- 57:58right materials. And he's really expecting us to
- 58:01be there and fully ready to like really hammer down on this
- 58:05project. Now, proactive quality control
- 58:07with sub trades is super important to your trades may not
- 58:11appreciate you pointing out things that they're, you know,
- 58:13doing wrong or what have you, But when you could be proactive
- 58:17with quality control because they're going to be there for
- 58:19whatever it is, you know, three days a week, 2 weeks a month,
- 58:23whatever it may be. Make sure that while they're
- 58:25going through their job that you are trying to help them and make
- 58:30sure if you see something out of place that you tell them about
- 58:34it. Obviously there's things in
- 58:35progress and something's not finished finish, but if you can
- 58:38just kind of tell them, hey, make sure to remember this right
- 58:41before you guys leave, I noticed you didn't put in this low
- 58:44voltage wire here or whatever, right?
- 58:46So that way if you can help them through that, then you know when
- 58:49you do your inspection for quality control inspection,
- 58:52you're not calling them back for like 10 different things, right?
- 58:54Maybe there's one, ideally none and it'll help you, it'll help
- 58:58them. So be proactive.
- 59:00And then 3D scans are phenomenal.
- 59:02Before you close up the walls, do a 3D scan so you get all of
- 59:06the new plumbing, HVAC, framing, you can see everything behind
- 59:10the walls. And that way when you eventually
- 59:13it's going to come up sooner or later.
- 59:14I'm sure you've been through this where it's like, where do
- 59:17we put that piece of backing or did we actually run a wire here?
- 59:20Why is this not connected or whatever, right?
- 59:23Go back to your 3D scan and you can look at it.
- 59:25If you don't want to hire someone to do a 3D scan, then at
- 59:28the very least take video or panorama pictures and just
- 59:33massive amount of pictures before the walls get closed up
- 59:36because you're going to want to go back and and check out those
- 59:39pictures beforehand. And if you want to be really
- 59:41organized, have separate folders for different stages of the
- 59:44project because as you know, you may end up with hundreds of
- 59:48pictures per project. So I like to have sort of demo
- 59:51and framing your rough ends pre board and then post board
- 59:55drywall and so on. And you could even have like buy
- 59:58room or something like that. So you can always go back and
- 1:00:00see specifically what happened at what stage of the project.
- 1:00:04Now subcontractors they can work for, pretty much.
- 1:00:08Anybody else there, they're free agents and they can go to the
- 1:00:13next guy if you don't treat them well or they don't feel like
- 1:00:17they want to be doing your projects.
- 1:00:18So make sure you're treating them and you're thinking about
- 1:00:21retention and prioritizing them as well.
- 1:00:24So appreciation and benefits for them.
- 1:00:27Typically, if you want them to do their job properly, they want
- 1:00:30you to do your job properly. So don't have a whole bunch of
- 1:00:33other trades there. Don't have a messy site.
- 1:00:35Don't be unorganized. Don't be calling them the day
- 1:00:37before telling them. Hey, I need you to.
- 1:00:40Send someone to go fix this thing because we got inspection
- 1:00:42tomorrow and you know always having to these like fires that
- 1:00:46you need to call them to put out or asking them for minute
- 1:00:49details on plans, little tiny things like that, right.
- 1:00:52So really appreciate them do your best.
- 1:00:55If they're messing around and they're not doing well, then you
- 1:00:59need to tell them, but you need to go out of your way to make
- 1:01:02sure that you've created a great environment.
- 1:01:04And the biggest thing to doing that is by being really
- 1:01:07professional and making sure that you're doing like heads up
- 1:01:11on issues. So something comes up.
- 1:01:13Hey, my whatever drywaller is behind, it's taking longer to to
- 1:01:18sand out. I'm sorry, I'm going to have to
- 1:01:19push you guys, you know, off a couple of days, you know, for
- 1:01:22the painters or whatever, right? So just tell them straight up
- 1:01:25and then tell them as well that you always want to know what's
- 1:01:29going on. If they're going to be late, if
- 1:01:30something bad happened on site, they need to tell you.
- 1:01:33And you're not going to lose your crew.
- 1:01:35Hold and flip over and get angry like cool, calm and collected
- 1:01:38and let them know obviously, and and you guys are team.
- 1:01:41You've got to figure it out. Yeah.
- 1:01:42So that's at the end of the day, that's what it is.
- 1:01:44You're a team. You're both wanting high quality
- 1:01:47project that finishes on time and on budget, and you're both
- 1:01:50working together. Now inevitably you're going to
- 1:01:53have difficult Subs. Subsets have either grown too
- 1:01:57big for you and and don't really care about your projects
- 1:02:00anymore, or Subs that don't show up or just do bad work, or maybe
- 1:02:04they hired a guy that's just not cut out for it or whatever it
- 1:02:08may be. And essentially what you need to
- 1:02:10do there is be upfront with them, tell them what's
- 1:02:14acceptable, what's not. And if yeah, if they've done,
- 1:02:18you know, 2-3 projects and they've all kind of been the
- 1:02:21same and unorganized and you just know what to expect from
- 1:02:24them, then it's time to probably cut ways and look for somebody
- 1:02:27else. And if you got to pay them a
- 1:02:29little bit more, then do that. Better to have someone who is
- 1:02:32accountable and who can manage schedules and organized then
- 1:02:37someone who's going to waste your time and make you look bad.
- 1:02:40In front of a client. Essentially, at the end of the
- 1:02:42day, the subcontractors you hire is a representation of your
- 1:02:46company and employees for that matter too.
- 1:02:48So if your clients are seeing like guys that just don't care,
- 1:02:52they're messy, they come and go whenever they please and they
- 1:02:56just don't communicate well, that's going to reflect badly on
- 1:03:00you and it's going to keep you from having high levels of
- 1:03:02communication and high level clients.
- 1:03:07Now that you've got amazing communication on your sites, we
- 1:03:09gotta talk about the money behind it all.
- 1:03:12Burning budgets. How many times have you got into
- 1:03:15a project and things look pretty good and then you get halfway
- 1:03:18and it's like getting a little tight and then by the end, you
- 1:03:21know you're just burning off all your profits.
- 1:03:24Try to eke out and finish the job.
- 1:03:26That is not where you want to be.
- 1:03:27You want to know well ahead of time where a project is at and
- 1:03:31be able to track it throughout the entire project.
- 1:03:34So job costing is the way to do that.
- 1:03:36It's easy to understand, but very difficult, I would say to
- 1:03:41really get set up and operating 100% at, at full accuracy.
- 1:03:46Now the way that I like to set up job costing, and again, this
- 1:03:49is something I would suggest hiring someone to do, so reach
- 1:03:52out to us. There's links in the
- 1:03:54description. We can help you set up all the
- 1:03:56systems for your project management, whether that's your
- 1:03:58software, your job costing, the financial side of things,
- 1:04:01whatever it may be. But essentially the way you want
- 1:04:04to be thinking about it and the way that I've found it works the
- 1:04:06best is you want to leave your accounting software as is and
- 1:04:11not do job costing through accounting software.
- 1:04:13What I suggest is do your job costing through your project
- 1:04:17management software, but you want an integration so that your
- 1:04:20accounting software, your bookkeeping software is sending
- 1:04:23information to the project management software.
- 1:04:26And in the project management software is where the project
- 1:04:29manager is categorizing the different expenses.
- 1:04:33So miss, miss project framing materials and, and you can just
- 1:04:37do everything in there. And the reason you want to do
- 1:04:39that because it keeps your books clean.
- 1:04:41Your bookkeeper doesn't really know what's happening on site.
- 1:04:43And you probably don't want your project managers having like
- 1:04:46full access either to your bookkeeping accounting software
- 1:04:49because things get mixed up and they can see a whole lot of
- 1:04:51stuff that they just really don't need to have access to.
- 1:04:55So that's the way that I've seen it work best.
- 1:04:57Now, every project management software is a different story.
- 1:05:00And a lot of them don't communicate well with other
- 1:05:02programs. And that whole thing can be
- 1:05:04quite messy. Plus you've got the human
- 1:05:06component of, you know, you as the project manager.
- 1:05:08If you're watching this, you're the one I'll be doing this, you
- 1:05:11need to be able to keep accurate with this and keep it up to
- 1:05:15date, which can be challenging, especially when you got a lot of
- 1:05:18projects that are managing to really let that slip.
- 1:05:20And that's what you essentially don't want to be doing.
- 1:05:22But job costing, you've got your time and hour tracking.
- 1:05:25So we talked about that with the field crew.
- 1:05:27They should be clocking in and out of of jobs and also which
- 1:05:31part of the job they're working on.
- 1:05:33And if they're not, then the Superintendent or site manager
- 1:05:35should be doing it. And then expense tracking.
- 1:05:37So expense tracking should all be automatic.
- 1:05:40All the everything is paid by credit card or bank transfer or
- 1:05:44whatever. And all those transactions are
- 1:05:46going to go into your bookkeeping software and then
- 1:05:48they just pull over into your project management software and
- 1:05:52then get categorized there. Now once that system set up, you
- 1:05:56are, I call it the Holy Grail of construction businesses because
- 1:06:00essentially once you have jaw like good job costing set up,
- 1:06:04now you know exactly where you are at on projects.
- 1:06:07You know your profitability, you know when things are starting to
- 1:06:10go sideways over next you'll project that you estimate where
- 1:06:14things are up or down. So be doing a weekly review on
- 1:06:17the project. Just as I mentioned, a weekly
- 1:06:19review of the schedule to make sure everything is, you know
- 1:06:22you're looking month, two months out, weekly review of the
- 1:06:24budget. Where are we going over?
- 1:06:27Where are we under? And you don't want to get fooled
- 1:06:30again. I'm sure you've got fooled where
- 1:06:33you thought you were making money on a project.
- 1:06:35The project ends, you look at your bank account and it's like,
- 1:06:38where did all the money go? Why didn't I make any profit on
- 1:06:41this? And you essentially have no idea
- 1:06:43because the job costing is, is just not in place.
- 1:06:45So weekly review of financial budgets, change orders are
- 1:06:49another quick way to burn money and light it on fire.
- 1:06:53And if you need to burn $100 bill in front of, you know,
- 1:06:57whoever's needs to know about change orders, then do that to
- 1:07:00get the point across. But essentially every change
- 1:07:03order needs to be communicated right away.
- 1:07:06And you should have a decision kind of matrix or decision
- 1:07:09communication to your guys that, hey, if it's something small,
- 1:07:13it's going to take you half an hour to fix, Just go ahead and
- 1:07:15fix it and don't worry about it. But make sure you're putting in
- 1:07:18the daily report or communicating it to a
- 1:07:21Superintendent or whoever so that we know how many small
- 1:07:25little changes are outside of the scope.
- 1:07:27Now, if something's going to take, I don't know, one hour or
- 1:07:30two hours, it's going to cost over $300 to fix something,
- 1:07:34whatever it may be. You're going to have like the
- 1:07:37threshold of like below this. Just take care of it above this.
- 1:07:40We need a change order in place and documenting that.
- 1:07:43I'm working with a client where they've been running a project
- 1:07:47and they're just pushing progress and getting things
- 1:07:49done. And now two months later into
- 1:07:51the project, the financials are a bit tight.
- 1:07:54And it's like, well, you know, we have all these different
- 1:07:57change orders or things that have changed in the scope or
- 1:07:59updated architectural drawings. And now they need to go back and
- 1:08:02sort through all these different, you know, what was
- 1:08:04the change order? How much time do we spend and,
- 1:08:06and what was the materials that we picked for this?
- 1:08:08And it's a bit of a mess and it doesn't look good with the
- 1:08:11client, right. If it's like, yeah, you know,
- 1:08:14we're doing change orders like retroactive after the fact and
- 1:08:18now it's gonna cost you a whole bunch of extra.
- 1:08:20And these are like even if they're legitimate, which they
- 1:08:22are, it just doesn't look great. And no client wants to get that,
- 1:08:26you know, big bill of here's all the change orders, now you owe
- 1:08:29us whatever, you know, an extra $20,000 or something like that.
- 1:08:32Much better to do small ones, communicating with them ahead of
- 1:08:35time. Be proactive with that.
- 1:08:37And as I mentioned with the scheduling, make sure that every
- 1:08:39change order also has a schedule update as well.
- 1:08:42This is going to take an extra 2 days and this is an extra week
- 1:08:45of work or whatever. Subs and independent
- 1:08:47contractors. This is an easy way if you're
- 1:08:50doing like cost plus or if you're just pulling this up, you
- 1:08:54know, that last scramble of like, I don't care, just charge
- 1:08:57me for it. I need you to get in here and
- 1:09:00just do finishing and you're trying to push the project
- 1:09:02forward, but the, the sub gives you a bill and it's like, well,
- 1:09:06$10,000, well, we only had budgeted like four or five.
- 1:09:09You know, like either you're going to eat the cost or you
- 1:09:11going to talk with a sub and try to bring them down, which nobody
- 1:09:14wants to be in that situation because they kind of did you a
- 1:09:16favor with maybe coming in there quicker or what have you.
- 1:09:19So I would, I would very rarely give us some free rein and just
- 1:09:23do like cost plus or just say like, Hey, just come in here,
- 1:09:26finish that and charge me. What what you need to, if you
- 1:09:29know, you've got the budget for it, OK, in a pinch, but always
- 1:09:33be getting pricing from a sub, even if it's just like something
- 1:09:36small and you need them in there for a day.
- 1:09:38Ask them what they think it's going to take, how many hours,
- 1:09:41how much cost or money and always be holding them to their,
- 1:09:44their estimates that they're doing to make sure that you're
- 1:09:47not just again, throwing money out the window because you guys
- 1:09:50were not on the same page. And if they give you a price,
- 1:09:52it's way over what you budgeted. Now at least you have something.
- 1:09:55Maybe you can go to the client and just let them know, Hey,
- 1:09:58this is the stuff that's going to cost more or whatever and,
- 1:10:00and try to work that out. And then finally, the clients,
- 1:10:04if you have had those clients before where they just talk
- 1:10:07nonstop, They're always on site, they're talking to your guys and
- 1:10:11they're just sort of necessary wasting everyone's time, but
- 1:10:14they're wasting a lot of time. You need to talk with those.
- 1:10:16Hence, if you're doing a cost plus job, tell them, hey, happy
- 1:10:20to answer all these questions, happy for you guys, you talking
- 1:10:23with the guys. But just know that all those
- 1:10:25conversations, all that time that we're putting into this
- 1:10:28that you're asking my project manager go dive through all
- 1:10:30these like old receipts or whatever it's costing you money
- 1:10:34or or vice versa. Just let them know that, hey,
- 1:10:36you know, all of this is like costing money.
- 1:10:38So tell the clients, obviously you need to do it with some tax
- 1:10:41and a little diplomacy, but let them know that if they're asking
- 1:10:44for a lot of detailed information or they're talking
- 1:10:46with you guys, obviously they're coming to site and kind of using
- 1:10:50up a lot of time that it's, it's costing money and it's it's
- 1:10:53burning through the budget. Congratulations.
- 1:10:57We are getting close to the end of the project, but not done
- 1:11:01yet. We still gotta close it out.
- 1:11:02And then we got to do a recap and review.
- 1:11:04So we know that the next projects going to be even
- 1:11:07stellar. And that's where you hit the
- 1:11:09sweet spot with business. When you can finish something,
- 1:11:12review it, improve it so that every new project is getting
- 1:11:16better and better every time. So now we're gonna talk about
- 1:11:19the double time closeout. Who doesn't want to get to the
- 1:11:22end of the project? Spend one day.
- 1:11:25Doing the final cleanup and then hand it over to the client.
- 1:11:27And you can get there may not be one day, but your closeout
- 1:11:31should be a few days for to fix a couple of things, not two
- 1:11:34weeks of loose ends and a whole bunch of random stuff that needs
- 1:11:38to get done. And it starts with great quality
- 1:11:40control earlier, but at the end you need to completion
- 1:11:43checklist. So these are all the things that
- 1:11:44need to be completed. And those are things both on
- 1:11:47site by sub trades, the quality control, all of that kind of
- 1:11:51stuff, but also for permitting, for final inspections, for
- 1:11:56education for the client on their new HVAC systems or, or
- 1:12:01plumbing fixtures or whatever, right?
- 1:12:03So whatever needs to get done should be in a checklist so that
- 1:12:07it's very easy. This is everything that's done.
- 1:12:09These are the few things we need to get completed.
- 1:12:11Everyone's on the same page. And in the end, quality does
- 1:12:15trump time. I know clients who are obviously
- 1:12:18not happy with things taking longer, but if it's a decision
- 1:12:22between do we do a little bit better quality or do we get it
- 1:12:26done on time? More often than not, I found
- 1:12:29quality is king. If you can't reach a certain
- 1:12:32level of quality, then your company is gonna suffer.
- 1:12:36Whereas if you're a bit behind schedule, not the end of the
- 1:12:40world, it's easier to tell clients, hey, I know we're
- 1:12:42behind schedule. I know this is taking longer,
- 1:12:44but we really want to ensure that we're at least getting the
- 1:12:47quality really top notch and we're getting things done right
- 1:12:50and proper so that when you move in, you're 100% satisfied with
- 1:12:54everything that we've done. And then the thing that I hope
- 1:12:57you've learned and I learned the hard way is no work after move
- 1:13:01in. So once the client moves into
- 1:13:03the house or the project or they take ownership of the building,
- 1:13:07whatever it may be, to not be that contractor that then has
- 1:13:11people coming in to fix up some random little stuff that got
- 1:13:14done and your carpenters in there with their tools while the
- 1:13:18family is trying to eat their breakfast and they're still
- 1:13:20moving in. When they move into their new
- 1:13:22space, they're going to be super busy moving everything in.
- 1:13:25They're enjoying the space and they've just went through a very
- 1:13:28traumatic, you know, whatever is 8-9 months of building.
- 1:13:32They don't want people coming into their house to come fix
- 1:13:35things. So make sure everything is 100%
- 1:13:38done. Have a final walkthrough with
- 1:13:40them. Any little things get picked off
- 1:13:43and, and and identified. Then give yourself another
- 1:13:47couple of days or a week, even if you need again, you want to
- 1:13:50close that that closeout process time, but give yourself whatever
- 1:13:54time you need to finish absolutely everything.
- 1:13:56So it's 100% Immaculate before the people move in.
- 1:14:01And then the final things to discuss and confirm is warranty.
- 1:14:04So let them know I'm going to follow up with you in two months
- 1:14:08or three months and ask to see how things are going.
- 1:14:11You may notice that there might be some little drywall pops or
- 1:14:13some screw pops or maybe a little something is like maybe a
- 1:14:17little loose or, or stuff comes up.
- 1:14:19Tell us about those. We want to know those.
- 1:14:21We will list them out and then we will do a warranty call at 3
- 1:14:25months or whatever the reason you.
- 1:14:26Want to say this? Is because as you know, you
- 1:14:28don't want to be sending a Carpenter there every week,
- 1:14:31every two weeks to go fix some little baseboard or, or fix some
- 1:14:35minor little screw pop or crack in the drywall.
- 1:14:38If it's if it's something really bad or, or what have you, yeah,
- 1:14:42you may send someone, but you wanna be creating a list and
- 1:14:45tell your client that so that you can tackle everything.
- 1:14:47You send a guy for three or four hours, they go fix all these
- 1:14:50little things, take care of this and that and then you know it's
- 1:14:53done and you've spent maybe 3 or 4 hours on warranty time.
- 1:14:56But it beats having to go back four or five different times
- 1:14:59with a Carpenter or your finisher.
- 1:15:02And now they've had to, you know, drive and communicate and
- 1:15:05they've got to disrupt the family, you know, a bunch of
- 1:15:07times and all this stuff, right. And then so I like to do two or
- 1:15:10three months kind of in fix everything that needs to get
- 1:15:13fixed and then call them like a month before.
- 1:15:16Usually you have a one year for workmanship on warranty, but a
- 1:15:19month before the warranty ends, call them and ask them, Hey,
- 1:15:23your warranty is coming up in a month.
- 1:15:25We can send someone out next week.
- 1:15:27Is there anything you'd like us to come and fix any issues that
- 1:15:30you found in, in your, you know, whatever, right?
- 1:15:32So be really proactive with the warranty and do it on specific
- 1:15:37times. Make sure you're getting a final
- 1:15:38sign off. I know a lot of contractors who
- 1:15:41do this as well where they don't really have any documented thing
- 1:15:45where the client is signed off that they're that the project is
- 1:15:48100% complete. You need to be getting that sign
- 1:15:51off from the client so that later they can't say, well, you
- 1:15:54know, you guys never came and fixed this or this was never
- 1:15:58actually completed, right? Get their sign off after that
- 1:16:01final walkthrough going to list out or there's, you know these
- 1:16:04couple of things, right Alright, sign the paper that were 100%
- 1:16:08complete except for these few things.
- 1:16:09You get those few things fixed in the next day or two days and
- 1:16:13now you've got something on paper.
- 1:16:14Hey, we fixed these things. That was it everything 100%
- 1:16:17complete. We have final sign off good to
- 1:16:19go and then final invoicing as well.
- 1:16:21If you you know, like I said, don't have them holding the bag
- 1:16:24over you. If you've structured your
- 1:16:26invoice and correctly, you should have their money in your
- 1:16:30bank account that you need to give back to them.
- 1:16:32Now this may be counterintuitive for you, but if you have the
- 1:16:36deposit and you've always been invoicing before the deposit
- 1:16:39runs out or before that the amount of money is gone, then at
- 1:16:43the end they should have paid you above and beyond the actual
- 1:16:46work that you did. And then you can give them a
- 1:16:48check back of like, yeah, here's the last things we fixed and
- 1:16:52everything worked out here is, you know, the remaining 5% or
- 1:16:56couple $1000 of your deposit back that covers that final
- 1:16:59invoice. Like you going to give a final
- 1:17:01invoice, maybe let's say it's 20,000, they gave you 25 $1000
- 1:17:04deposit. Now you're going to give them
- 1:17:06their $5000 back so that they're paying the final invoice and
- 1:17:09you're returning whatever is left of their deposit.
- 1:17:12So that you are always like they're financing their their
- 1:17:15build and you are never left having your money out that they
- 1:17:19can say, well you didn't fix these.
- 1:17:21Few minor things, so we're not. Going to pay you that $20,000
- 1:17:25last invoice until you fix them, right?
- 1:17:26That's where you do not want to be in that situation.
- 1:17:31So now the project is complete, but you want to make sure that
- 1:17:35your next project is even better and I'm sure you've gone.
- 1:17:38Back to the. End of the project knows what
- 1:17:40happened, you know, over schedule, over budget.
- 1:17:42I don't wanna repeat that again. And this is the way that you
- 1:17:45don't do it. One thing to keep in mind when
- 1:17:46you do complete a project, make sure you congratulate and
- 1:17:49appreciate everybody Subs, your employees, whoever that worked
- 1:17:53on the project, just say, hey, great job finishing the project,
- 1:17:57handing it over to the client. So if you know, if you've
- 1:17:59figured out by now, I like checklists because that's the
- 1:18:02way you build a process proven, structured, systemized company.
- 1:18:05So this should be a project review checklist.
- 1:18:07And on that checklist, typically you're going to have checking
- 1:18:10your actuals to budget it. So you've done your job costing.
- 1:18:13What did we go over? What did we go under both on the
- 1:18:17cost of the project, but also on the schedule.
- 1:18:20And from there you can ask like, was this a one off case just
- 1:18:24because something you know, out of the blue kind of happened or
- 1:18:27is this a repeating thing? Or do we always go over on
- 1:18:29framing? Or are we always maybe under
- 1:18:31budget on demo and depending on that, you can then adjust your
- 1:18:35estimating to know to get a little bit more accurate on it.
- 1:18:38Reoccurring issues, what you know, we seem to always have
- 1:18:42trouble getting into tile guy in here and finding a good tile
- 1:18:46guy. Well, maybe we should reach out
- 1:18:47and get a few more tile guys in our database, right?
- 1:18:50So always be thinking upstream of like what's kind of
- 1:18:53reoccurring on projects, what continues to can happen and then
- 1:18:57how can we make sure that it doesn't continue to happen on
- 1:19:00future project process changes. Same thing with process changes.
- 1:19:05You know, it seems like every time we closeout a project, the
- 1:19:07clients are calling us the next day because they don't know how
- 1:19:10to use the heating system or they're, they're, they're unsure
- 1:19:14about, you know, this certain thing.
- 1:19:15We should put that in our closeout process that we provide
- 1:19:19that information to them where we show them.
- 1:19:20Specifically, this is how you set your heating controls and
- 1:19:24and whatever, right? So figure out what do you need
- 1:19:27to change, maybe in your processes to to build, to build
- 1:19:30better projects and then start, stop, continue.
- 1:19:33This one is good for the whole. Company, but especially for
- 1:19:36project management as well, what can we start doing that will
- 1:19:39improve what we do? What can we maybe stop doing?
- 1:19:42Well, we don't really need to continue to whatever may be
- 1:19:46right and what should we continue?
- 1:19:48So this is working really well. Don't touch it.
- 1:19:50If something's working, just continue doing it well.
- 1:19:53So at this point you are so far ahead of so many other project
- 1:19:57managers and construction companies out there.
- 1:19:59If you can implement and follow what the lessons and information
- 1:20:03and put those systems in place. You're well on your way now this
- 1:20:07is what separates the good from the great or the elite is the
- 1:20:10post project. So after every project, you
- 1:20:14should be doing a client survey of what went well.
- 1:20:17What did you enjoy? Why did you choose us?
- 1:20:19What things were you unsure of or what kind of what?
- 1:20:22What was the most stressful part of the project, right.
- 1:20:25You need to be getting that client feedback and most clients
- 1:20:27are more than happy to fill out a quick, you know, 10 minute
- 1:20:29survey. Make it as anonymous as you can
- 1:20:32or have like an office admin or something send it out because
- 1:20:35you as the owner or the project manager, they may be a little
- 1:20:39bit reserved about providing feedback to you.
- 1:20:41But when it's somebody else in the company, they may be more
- 1:20:45open or more of an anonymous like form to fill out.
- 1:20:47Ask for a review. Never waste a good review.
- 1:20:50You wanna be getting five star reviews on, you know, Google or
- 1:20:53any other Facebook, whatever sites that you want reviews
- 1:20:56from. Google is the big one.
- 1:20:58Make sure you're always getting reviews so you can put it on
- 1:21:00your website. And that they're in all the
- 1:21:02profiles and then ask for referrals if they've done a good
- 1:21:05project. Ask for referrals.
- 1:21:06I, I did a project for a client. He had a beautiful cottage.
- 1:21:11We went and built him the garage, but it was, it was
- 1:21:14mirrored the, the cottage and was Immaculate, like workshop
- 1:21:17and everything. And he ended up referring us to
- 1:21:19someone else on the lake. They ended up referring us to
- 1:21:21someone else. So keep that chain of referrals
- 1:21:24going and find your Tony. Tony was this great client who's
- 1:21:28actually referred to me by somebody else I had worked with.
- 1:21:31And then he referred me and then they referred me.
- 1:21:33And you had these, they were old, like really great clients
- 1:21:37to work with. And you'll find these groups of
- 1:21:39people that if you have a really good client, they're going to
- 1:21:43know other people that are generally really good.
- 1:21:45And we're going to do high quality projects.
- 1:21:47And once you've built something for somebody, they're kind of
- 1:21:50like keeping up with the Joneses.
- 1:21:51Now their neighbors want, you know, that new thing or, or that
- 1:21:54new house or whatever, right? follow-ups.
- 1:21:56You're going to be following up for warranties, as I mentioned,
- 1:21:58but you should be following up every 33130 and then 365 for
- 1:22:02sure. And then every year after that
- 1:22:04or every six months, continue to follow up with them.
- 1:22:07Hey, how's it going with the project?
- 1:22:08You still happy with everything? You know, what's going on?
- 1:22:11How are the kids? Whatever.
- 1:22:12A little bit of small talk, not a big conversation, but keep in
- 1:22:15touch with them. It's great customer service and
- 1:22:18it also opens the door for more referrals and feedback for
- 1:22:22yourself. And then the warranty portion,
- 1:22:23as I mentioned, if you can really nail down the warranty,
- 1:22:26even if you got to spend a little extra to send guys over
- 1:22:28there, they're going to want to refer you so much more.
- 1:22:31Even if there's little issues that crop up.
- 1:22:35Now here are some final keys for you to get right to put
- 1:22:40everything together and really get started implementing all
- 1:22:44this stuff. I know this is a lot, and like I
- 1:22:46said, if you want help with this, we've got programs and
- 1:22:48we've got all the templates and everything already dialed in for
- 1:22:51you. So just click the link in the
- 1:22:52description below to get in touch with us.
- 1:22:55But good practices that are needed throughout the industry
- 1:22:58viewing completion as the start. So when you complete a project,
- 1:23:02view it as the start of improvement of your business
- 1:23:05because now you've got a project completed.
- 1:23:08Now you're going to start improving your business.
- 1:23:10Celebrating a completed project. As I mentioned, make sure every
- 1:23:13project there's a celebration. Ideally you want to be doing a
- 1:23:16video interview with your clients, having a little
- 1:23:18celebration with them. Get, you know, a nice little
- 1:23:21gift basket for them. Give them a gift basket, say
- 1:23:24like you know, really work. It was really great working with
- 1:23:27you. Celebrate their big achievement
- 1:23:30of completing. The project for them 1% better
- 1:23:33on every project. So every single project.
- 1:23:36Do if you can get 1% better, improve this, improve that
- 1:23:39better, whatever communication systems, this and that, you're
- 1:23:42just going to slowly keep leveling up and you're going to
- 1:23:45slowly get away from the pack of other builders and you're gonna
- 1:23:48be the go to builder. Charge premium prices, work with
- 1:23:51premium clients, taking time for details.
- 1:23:54As you know, we like to work rapidly.
- 1:23:56And this was one of my maybe issues as a project manager is I
- 1:24:01like to move fast. I like things to get done on
- 1:24:04time. I like to have systems in place.
- 1:24:05I like communication. Happened and I would rush things
- 1:24:07sometimes and sometimes there come to, you know, bite me in
- 1:24:10the ass after because I maybe missed some details of the plans
- 1:24:14or I didn't maybe communicate as good as I should have been a
- 1:24:17missed some some key details or what have you.
- 1:24:19So make sure that you are you want to have that momentum and
- 1:24:24energy in a project, but you also don't want it to be rushed
- 1:24:27where people are missing details and running around with like a
- 1:24:30bunch of chickens with their heads cut off.
- 1:24:31So take time to make sure the details are in place.
- 1:24:34Do that pre planning and the rest of the project will run.
- 1:24:36Really asking for help and opinions this is another thing
- 1:24:39for me I like to run my own show and in construction you get a
- 1:24:44lot of guys like this, you know the kind of desperado, lone wolf
- 1:24:47kind of mentality of I'll figure it out I don't need help and.
- 1:24:51But asking for help and opinions is important, especially from
- 1:24:54guys who have been there for a long time.
- 1:24:56I can remember as a project manager when I, when I imagine
- 1:24:58projects, you know, way back in the day was working with the
- 1:25:02company and I was new to the company, had been project
- 1:25:05managing for a long time. But I didn't know the way that a
- 1:25:08company worked and exactly how they built and all this kind of
- 1:25:10stuff. And the one of the guys that
- 1:25:13have been there for like 15 years, he was able to give me
- 1:25:17some really great, no suggestions and help as far as
- 1:25:20like how to build things. And I wasn't super receptive to
- 1:25:23it. But later I realized that even
- 1:25:25just because, someone's maybe a labour outside.
- 1:25:27Or a Carpenter. That doesn't mean that they
- 1:25:29don't have knowledge and expertise that they can really,
- 1:25:32you know, help you. So take opinions, take help.
- 1:25:36You don't have to listen to everything you know, not all
- 1:25:38suggestions and and help is is good, but but be open to it and
- 1:25:42ask for feedback from your Subs, from your workers, from, you
- 1:25:45know, architects, engineers, whatever, right?
- 1:25:48And you'll just become a much better project manager.
- 1:25:50And then the final thing I'm going to leave you with is
- 1:25:53rigorously implement systems. Every single thing can become a
- 1:25:57system. You're going to be the human
- 1:25:59touch and connection. And that's why project managers
- 1:26:02are so valuable and important on a project because they really
- 1:26:05bring everything together. But the system should make your
- 1:26:07life. Easier and everything you do
- 1:26:10should be in a systemized, process driven way.
- 1:26:13And that's when projects really become fun.
- 1:26:15Everybody knows what's happening, everyone smiling
- 1:26:17everyone's like if you're on a site and people are joking
- 1:26:20around, but still progress is getting done and you hear the
- 1:26:23saw running and you and you hear, you know construction work
- 1:26:26happening and people are are, you know, in a good, good mood.
- 1:26:29You know that the project manager has good systems and
- 1:26:32good communication in place, and that's what you need.
- 1:26:35Now that you know how to manage projects, you're going to want
- 1:26:38to go. Check out this next video.
- 1:26:39You now have a full guide A-Z on how to manage construction
- 1:26:43projects at a very high level. If you want help with a full
- 1:26:47done for you implementation of these systems and processes,
- 1:26:51getting your tech in place, getting your documentation in
- 1:26:53place, training your project managers and how to use
- 1:26:56different systems, check out the link in the description below
- 1:26:59and you can get in touch with us to help you level up your
- 1:27:04business.