Managing a Wage and Hours Violations Crisis
There are many possible crises that can affect your organization or the manner in which you conduct your business. This issue continues the series of articles based from Doug Staebler’s summer meeting educational lecture in which he presented a system for identifying and dealing with threats and crises.
For review, crisis management is the process of identifying events or series of events that could threaten the survival of your business, and taking steps to reduce the likelihood or severity of the event is an important function in every business, but one that is often put aside for more pressing matters.
However the benefits of crisis management exceed any obstacles that you might have. Planning for a crisis begins with identifying areas where your business is vulnerable, giving you the opportunity to address those weaknesses in the organization’s infrastructure. Developing the proper plan reduces the chance of an event occurring in your business, or it does occur, reduces the severity of the event.
TOPIC TWO: WAGE AND HOUR VIOLATIONS
Employers toady face a virtual minefield when it comes to employment laws and regulations. Disgruntled employees can quickly become plaintiffs in litigation against your business. Federal Wage & Hour, Internal Revenue Service, and state unemployment laws present numerous pitfalls for business owners. Employers are subject to penalties, fines, and litigation if employment practices do not conform with a wide range of laws and regulations.
Problems in this area can prove costly and frustrating, but are often preventable with sufficient planning and attention to details. Many problems originate because businesses are not aware of various employment laws. Unfortunately, ignorance is not an excuse when it comes to employment matters. Employers are expected to keep up-to-date with and correctly apply a wide range of employment laws. Making matters worse, most employment laws are written to protect and favor employees, and the burden of proof is usually on the employer.
Overtime pay requirements are frequently misunderstood and incorrectly applied by business.
Many businesses incorrectly believe they can avoid the requirement for overtime pay by paying employees based on a salary instead of hourly rates. Wage and hour laws provide specific guidelines that must be met in order for employees to be exempt from overtime pay requirements. Employees must fall into a professional or management role in order to be exempt. Examples of professionals include attorneys, architects, engineers, accountants and others with specific educational backgrounds. The management exception would be applied to employees with decision-making authority. Office employees are the most commonly misapplied employees. Although office and administrative employees are often paid on salary, they must meet either the professional or management guidelines in order to be exempt from overtime pay requirements.
Employee agreement to be paid on a salary, and to forgo overtime pay, does not eliminate the employer’s obligation to follow overtime pay requirements. Employees can bring actions to collect back overtime pay either individually or as group. In cases where employees were paid salaries, employers often have little evidence of the hours actually worked, which can make it difficult to counter employee overtime claims. In addition to back pay employees may be entitled to penalties of 50% of the amount of back pay.
Another area that is frequently handled incorrectly, particularly with contractors, is the treatment of travel time to and from jobs. It appears that practices among CFA members cover the entire range, from paying only for time at the job site, to paying for all travel to and from job sites. The fact is, that if your employees are instructed to report to work at your facility, and are transported to and from job sites, then all travel time needs to be paid, and is subject to overtime rates if total hours exceed 40. As with overtime, failure to handle travel time properly can result in large retroactive adjustments, including penalties.
Probably the most common problems occur in the misclassification of employees as independent contractors. Businesses frequently try to classify employees as independent contractors, in order to avoid payment of matching FICA, workers compensation insurance, unemployment taxes, as well as inclusion in the company’s fringe benefit plans. These additional items can add 15-30% to the cost of employees, and create a significant incentive to treat workers as independent contractors. IRS has established specific guidelines to determine in which circumstances workers can be properly treated as independent contractors. The guidelines are based on a number of factors, including common treatment of similar individuals within the industry and the 20-factor test long employed by IRS in this area. The most significant factors include the extent the workers are supervised, the element of profit or loss potential.
If IRS or other governmental authorities determine that employees were improperly treated as independent contractors, the employer can be held liable for the withholding taxes that should have been deducted, as well as penalties and interest. In recent years, the issue of inclusion in employer benefit plan has become equally significant. Workers have successfully sued employers claiming they should have been included in group medical plans, with employers being made responsible for the medical costs of the employees.
Additionally, employers face a multitude of potential litigation from disgruntled employees for issues such as discrimination, wrongful termination, harassment, and ADA claims. A well-written employee manual outlining pertinent policies and practices is one of the best ways to prevent these types of claims. Liability in cases of this type, usually fall outside coverage of business liability insurance. Two additional types of insurance are available to protect business owners. Employment practices insurance provides coverage in cases such as those described, while employment benefits coverage provides coverage in cases where employees are omitted from fringe benefit plans due to administrative oversight.
In today’s labor market, it is important that employees feel valued by their employer, and that they have good access to information, and prompt help in resolving the type of problems employees often encounter. Your employees’ awareness and familiarity with your fringe benefit plans is often far less than you may realize. These areas are typically difficult to understand, and can easily intimidate employees. Their morale can be significantly affected by the manner in which their concerns are handled. The person who handles the human resources and payroll functions in your business is a critical link between you and your employees. A competent, responsive HR manager who show genuine concern for your employees can be areal asset to your business. Whether it’s an error in their paycheck or the denial of coverage by your group medical provider, it is important that they receive prompt, courteous handling of payroll and benefit matters.
Unfortunately, when problems do arise, it is often too late to solve the problem and all that can be done is damage control.
As with many types of crises management, the chance of major and costly problems related to the employment practices in your business can be reduced significantly by the review of your business practices, and identifying areas where problems may exist. Additionally, it provides the opportunity to make improvements in the overall operation of payroll and human resource function in your business.
Web Lesson: Getting Registered
You’ve seen two postcards and anticipation is building for our next summer event. Yes, the CFA Annual Summer Meeting is a mere fifteen weeks away. A lot can be said about taking advantage of getting your travel plans taken care of early enough to reduce the stress on your everyday lives. A lot more can be said about helping out and getting your registrations in order to reduce the stress on your CFA staff. This year we are promoting the use of our new website registration site to complete your transactions for the summer meeting. This article will walk you through the steps that you will take to get registered to attend both the meeting and the fantastic events that await you. So, without further adieu, let’s GET REGISTERED!
Many of you will recall the article that we brought you last issue providing you with some of the core components on this new website. You will also recall that the first thing you need to do is to secure your logon I.D. number and your password. You should have received this very recently in a letter from our office. If you have misplaced this letter or if you did not receive a copy of it, please contact Janette in our office and she will provide the required information. Once you have located your I.D. and password, you should proceed to our website (www.cfawalls.org). Along the top of any page on our site you will see a tab layout. Selecting the Resources (see fig.1) tab will open a new window where you will see the logon screen (fig. 2). You will then enter your I.D. number and password and select the “OK” button. Assuming you have entered this information correctly, you will see a welcome screen and the beginning options for interacting with this portion of the site (fig. 3). We are going to focus solely on the registration process for Summer Meeting so you will want to take your mouse to the “Events” label where a box will drop down displaying all of the available events that are currently active for registration. In this case, our Summer Meeting is currently the only available event for registration.
Once you have selected the 2003 CFA Summer Meeting, your browser will next show a grid or table where you will begin the process of entering the people attending the meeting on your behalf (fig.4). We will process through registering two people for this summer meeting. Please note that there is a fairly detailed process at the bottom of the screen that will lead you through the proper steps.
Begin by selecting the Add Registrant button. This will add a line to the table that includes a pull-down box in the first cell. You may wish to pull this box down with the arrow to select someone that we have existing in our database. By doing so, you can then proceed directly to Activity Registration. If the person you are registering is not listed or you don’t want to pull the box down, simply type the first and last names into the appropriate boxes and proceed to the next step.
Next, you need to select the type of attendee that this person will be by pulling down the box in the cell labeled Registrant Type. Once you have completed these two steps, proceed to the next screen by selecting the Activity Registration button to the right. This will take you to a screen for this specific person that shows you the available activities we have set up for this event (fig. 5).
This year’s Summer Meeting has three pages of activities for you to scroll through. Figure 5 shows the options to register for the Summer Meeting as a full registrant or as a Spouse depending on which person’s activity you have selected. In addition, our event for Thursday which is the bus tour to Top Sail beach is on option here and the first to exhibitor options. You select a specific activity by entering a quantity as shown. Let me add a quick note about the registration process. The first two registration options (Full and Spouse) are for those individuals that will be attending the meetings, the awards luncheon and the opening reception. You may choose to register someone for one of the evening events, golf or the bus tour without registering them for the actual Summer Meeting as long as they don’t plan on attending the meeting portions.
Let’s begin. Bill Esker shown in Figure 4 would likely enter a quantity of one next to Full Registration. Immediately the Total is updated to $320 in both the activity column as well as the Event at the bottom of this table. I would like to stress that we encourage you to register each unique attendee including children and guests separately rather than charging several registrations to one individual. This gives us a better record of attendees and helps us with things like preparation of name tags, etc.
Now, Bill isn’t quite done yet, or at least we hope he isn’t. By selecting Next at the bottom of the table shown in Figure 5, the next screen of available activities will show (Fig.6). We know that Bill isn’t going to exhibit at this event so he will skip over the first three lines of this table. However, we also know that Bill is quickly becoming an avid golfer and he won’t want to miss joining us on Wednesday for our tournament. Entering a quantity of one again here will update his total on this screen. Who can avoid attending our social functions? On this screen Bill will also register to attend the Friday Night party at the beach. Bill should make certain he enters a quantity for the “18+” registration since we are fairly certain he is at least 18. There is an option for each of the evening events for children pricing. This brings his screen total to $175 and he is off to the last activity page (Fig.7) selecting Next.
For this last screen of activities, Bill decides that he can’t stay away from our closing event, Saturday night at The Carolina Opry (see Ed’s Summer Meeting article in this issue). He enters a quantity of one for this event and the page total updates automatically to $65. We are through selecting activities for Bill now and we return to register the next attendee with Bill’s company for our Summer Meeting by selecting the Save & Close button. You will notice that we have returned to the screen shown in Figure 4 except that now a Total Order is shown reflecting our activities selected for Bill of $560. It is likely that Mary Lou will attend this with Bill so we can go back through the previous steps and add activities including Spouse Registration, Golf and our Friday and Saturday night events for her as well. The Total Order will once again be updated for adding her to the event for a total of $1,240. Do this as often as needed until your entire party has been added.
Once all attendees for the company have been registered you will select the Close button that returns you to the original welcome screen updated with the balance for the order you have prepared (fig.8). You will notice a flashing message reminding you that to complete this registration process, you must select the Checkout button. So lets checkout.
By selecting Checkout you are telling the system that you are completely finished with your order. You may choose to order literature or other items with this registration or you may not. We are setting that aside for this tutorial. A screen will appear showing you a summary of your order (Fig. 9). From here you will select your credit card type, enter the number of that card with no spaces or dashes and then the expiration as two number month and two letter year again with no additional spaces or characters. Once finished here you select Complete Payment one time only. The credit card processing center we are using (VeriSign) will now check the card for the amount and validity. If successful, you will get a box that provides the acknowledgement and a reference number and an option to print a receipt. By selecting to print a receipt you are taken to a screen with a blank table (Fig. 10). Don’t be alarmed that nothing is present in this table as from this point on that data will not be shown. Select the Print Receipt button at the bottom of this page and you will get a portable document file (pdf) that you can store on your computer and print out at your leisure for permanent record of your transaction. Should your transaction be denied, a reason for this declination will be given and you may attempt again or contact our office for further assistance.
What other pointers can I give to you? Well, many people are still using dial-up as the means to connect to the Internet. There is absolutely nothing wrong with this but you will need to be patient. You are connecting to a real-time database through this process and this requires data transfer for each stage. Watch you status bar at the bottom of your browser as it will keep you informed of your process during each screen load. Also, don’t back out of any screen without selecting Save and Close unless you intend to go back without adding any information. Lastly, if you have to go back into someone’s Activity Registration, don’t re-enter a number for an event that you’ve already registered for. Your key to knowing what you have registered for is the dollar total that you see above the attendee table (Fig. 4) and on the original intro screen (Fig. 3).
I hope this article will help you experience the fantastic communication and control that we are placing at your hands as a member of this Association. Good luck, and I look forward to seeing all of you in Myrtle Beach.
Increasing Flow and Igniting Fire
Winning Advice for a Tough Economy
by Mike Foti
Do you sometimes feel like you are batting your head against a wall in your business? Prices are going south. Costs are going north. Margins are getting squeezed. Where is the magic “silver bullet” of success? The quick answer – it does not exist! If there was one quick answer, everyone would be using it and profits would flow as freely as water from a tap. As a leader of a business, a department, or a field crew, what can you do RIGHT NOW to move from bleeding edge losses to leading edge profits? Consider 3 Steps:
1. Think People – “Drill Down to Go Up.”
2. Think Strategy – “Jump Back and Get Out” to Move Up.
3. Think Speed, Efficiency, and Flexibility
1. Think People – “Drill Down to Go Up”
Results happen through people. Plain, simple, no rocket science here! Saying the statement is much easier than making it happen. Getting production, profits, results from others is about using influence, expanding ownership, and removing the obstacles for success. How can you drive this process?
• Take down “scaffolding” and influence “your people’s people!” – Are your top leaders influencing the people driving the day-to-day profitability-those closest to the action (estimators, field sales people, service technicians, machine operators etc.)? If not, meet with these profit-generators and explain, in plain English (no “business-speak”), the facts, the realities of your performance, your competitive position, what customers are telling you with their pocketbooks! Then ask them to get specific about how they can deliver exceptional results in their positions. Work together to set up measurements of performance and track actual results.
• Make matches; Reduce fires! Stop putting people into “jobs.” Match your people’s talents and skills to where you need them to “show you the money.” Identify who is unproductive. Determine if they have the skills, talents, and values to be successful in another capacity. If not, work them out of the business ASAP. If repositioning can work, get them working on the “fires,” the problems in your business. Forget “jobs” and start working on goals. Get your talent to dig in and “extinguish fires” while simultaneously igniting results.
• Remove barrels – Your job is to make others’ jobs easier! Are your systems giving those closest to the action the information needed to improve results today? Are bad managers in your organization killing innovation, dampening enthusiasm, and bring everyone else down to their levels? You don’t have time to let your “orange barrels” eliminate “green light” performance!
• Call in the “Dynamic Duo” – No, I’m not talking about Batman and Robin – although it would be great to see the “competitive villains” whisked away! I’m talking about using the dynamic duo of “ignorance and intelligence.” In today’s intellectually competitive world you need to identify (a) what you know, (b) what you don’t know and (c) what you are going to do to improve on “a” and “b.” Some quick ideas:
• Create an advisory board/ Find a mentor. Results magically improve when you surround yourself with smarter people (people with skills you lack) who can both inspire and challenge your current ways of thinking without concern for political correctness or hurting your feelings.
• Develop a “learning plan.” What are you reading, learning, and applying right now? Be strategic with your reading. Can it help you solve a current challenge?
2. Think Strategy – “Jump Back and Get Out” to Move Up
Most leaders are drowning in the sea of their own problems. Gasping for air is not the best time to develop winning plans! To get out of your funk you need to “jump back” from current operations, analyze your current reality, and get focused on winning approaches for the future. To do this, consider these ideas:
• Fix it, Grow it, or Blow The Segment Down! – Get your team involved and break the business in smaller segments (by products, services, markets, geography, customers etc.). Determine your segment profitability, growth, and competitive position. Then ask three key questions:
1. What are the critical issues facing the segment?
2. What can you do to make $ RIGHT NOW?
3. Is this segment worth the effort?
Finally, define the steps and people accountable to fix, grow, or blow the segment up.
• “Coulds vs. Shoulds” – Excitement, growth and profits require stretching your organizational limbs. When someone says “we could do this,” pause, then start digging into “should we do this?” I’ve seen many businesses become unfocused scrap-heaps of energy, effort, and dollars by not investing the time in the analysis to make this distinction.
• Visit the person who pays the bills – See your customers. What do they like/ not like about your performance? If they like you – get referrals so you can start dialing for cash today. Ask them their problems, pains, and challenges? Is there money in solving their problems for your company?
3. Think Speed, Efficiency, and Flexibility
If you’re not achieving the results you want right now don’t be deceived that happiness is right around the corner. I could show you a business I “invested” (that is a nice term for lost) $250,000 in over 4 years waiting for the “corner” that never came! Getting “fixed” in a tough economy requires implementing a thorough, tenacious, “cornerless,” plan leveraging speed, efficiency, and flexibility. Here’s how:
• Rev Up – My Dad (a long-time construction entrepreneur) had a saying on his desk that “Happiness is a positive cash flow.” To win, consider these ideas to open up the cash spigot:
• Reducing in-process materials and increasing inventory turns.
• Offering cash discounts to speed payments.
• Billing quicker.
• Paying faster (yes – not a misprint) while simultaneously negotiating better prices and terms.
• Clean Up – Tough times are made to clean up past “messes” (the fat and inefficiencies built up in the “good ‘ol days). Some ideas:
• Stop paying $2,976 for coffee and water. One of my branches spent this amount on coffee and water last year. How did we not notice? The bills came in monthly for at about $100 to $200 a pop. Switching to Maxwell House and putting a filter on our tap – total cost $400 (yearly savings – $2,576). Look at your expenditures by vendor for last year. Cut the fat!
• Pride of Ownership – Look around at the neatness of your office, plant, job sites. Is a sloppy, disorganized environment inviting waste, inefficiency, even theft. Get pride – get clean – save money!
• Limber Up – Are you stuck with slow-turn inventory, underutilized equipment, and people? Rethink what you see as “fixed” in your business. Look at “rent vs. buy,” “make vs. outsource” decisions and find ways to get flexible now. On the flipside remember one mans junk is another man’s treasure. If you do have cash reserves consider buying up your competitors fixed assets at today’s bargain basement prices.
Conclusion
Tough times call for tough measures. They call for you to do things differently, take new actions. How are you planning to increase your “flows” (reducing costs, improving margins, speeding payments etc.) and ignite the “fires” (getting people matched with work and results required) of those around you? Take action and watch the success flow!
Mike Foti is Chief Executive Officer of Cleveland Glass Block (a Northcoast 99 recipient for best employers in Northeast Ohio and a Community Pillar Award winner for community service) and President of Leadership Builders. Mike is a national speaker, writer, and consultant who helps individuals and companies get results through people. To ask Mike how he might help you, or to receive his free tips and leadership articles, call 216-531-6085 or visit his web site at www.leadershipbuilders.com.
H and B Foundations Profile
As one of CFA’s oldest members, H and B Foundations of Elizabeth, Colorado proudly touts the benefits that membership in the CFA has provided to their company.
“When I think I am the only that could have possibly experienced something,” said Bryan Herboldsheimer, Vice President of H and B Foundations, “there is always a CFA member that comes to rescue with advice.”
In addition to being one of the original members of CFA’s predecessor – the Poured Wall Contractors Association — the company has recently earned the distinction of being named one of the top 100 concrete contractors in Concrete Construction. Founded in 1971 by John Herboldsheimer, the company now boasts more than 180 employees and provides foundations, caisson drilling, flatwork, and excavation services to the greater Denver metro area – averaging about 500 to 600 jobs per year. Although primarily a residential contractor, H and B also has completed projects in the commercial arena, such as restaurants and underground parking facilities. Brothers Brett and Bryan Herboldsheimer will soon be taking over the business for their retiring father, John. CFA members have been instrumental in the transition between generations at H and B through their words of wisdom. Other members have offered advice, with both good and bad experiences, from the transitions in their own companies.
According to Bryan Herboldsheimer, the company recognized an opportunity for growth in 1993 through the addition of caisson drilling services. Herboldsheimer is quick to credit CFA with helping him put this service into practice. “As an active CFA member, I come away from each meeting with a fresh look on the poured wall industry by learning new business practices, including caisson drilling,” he said.
“Colorado is classified as having problematic soil conditions, making foundation installation a challenging feat,” said Herboldsheimer.
In Denver, caisson drilling involves drilling 10- to 12-inch holes into the ground underneath the foundation. This process prevents houses from moving when the soil contracts and expands. According to Herboldsheimer, caisson drilling has become essential in the Denver area because any soil that is not problematic has already been developed, leaving only troublesome soil. Further, the increased dedication to properly engineered foundations has resulted in more conservative designs. The added service was obviously something the market needed and H and B now offers drilling to other contractors as well and boasts 16 rigs.
Beyond recognizing a market opportunity and building a caisson drilling business, Herboldsheimer is dedicated to embracing the latest technology in the industry.
“With foundations accounting for approximately 60 to 80 percent of our business, keeping up with industry changes and technology is extremely important to H and B,” said Herboldsheimer. He forum for sharing information about new technology and field techniques.
“The networking opportunities that CFA provides are tremendous,” said Herboldsheimer. “My father was an original member of this association and he saw a great benefit and passed along this enthusiasm to his sons. He not only enjoyed the meetings and their informative content, but also the camaraderie between members. It does not matter how big or how small your company is, everyone talks to each other.”
In the next year, Herboldsheimer anticipates few changes within his company. In these tight economic times, H and B expects only moderate growth, unlike the double digit growth they have experienced in the last ten years. However, within the foundations industry, Herboldsheimer forecasts an increased use of technology both in the next year and in the next five years.
For more information about H and B Foundations, contact Bryan Herboldsheimer at 303-646-2910.
B.E.P. Forming Systems Big Panel Rotator System Turns Heads at World of Concrete
Nominated for “Most Innovated Products” Contest
Industry experts are praising B.E.P.™ Forming Systems’ revolutionary Big Panel Rotator System for its innovative concept and functionality. This new technology promises to reduce labor and equipment costs for contractors, while bringing a new dimension of design capabilities to poured-wall construction. Recently nominated for Hanley Wood’s “Most Innovative Products” contest at World of Concrete 2003 in Las Vegas, NV, B.E.P.’s state-of-the-art wall forming system has already been awarded top honors in its category by its most critical panel of judges— its customers.
With its patent-pending technology the Big Panel Rotator System challenges conventional concrete construction methods and raises the bar for the concrete industry. The company’s all-aluminum concrete wall forming system for residential and commercial construction features an exclusive (full-rotation) pivot technology. Because of its unique ability to pivot 360 degrees, B.E.P’s Big Panel Rotator System transcends the costly limitations inherent in traditional concrete forming systems. “Fifteen to twenty years ago, the industry was looking for fast, lightweight hand-set forms. During the last five to ten years, cranes have taken the form industry by storm,” said Bill Esker, President of J.B. Esker & Sons, Teutopolis, IL. “Now the industry is ready to take a big leap forward with B.E.P.’s Big Panel crane-set forming systems.”
The Big Panel Rotator System was created by B.E.P. Forming Systems’ President and Founder Greg Peacock; a concrete contractor who envisioned improving business for others in his profession. The B.E.P. Big Panel Rotator System increases efficiency for contractors by reducing their labor and equipment costs. And because the system integrates seamlessly with a contractor’s existing equipment, they are able to extend the value and adaptability of their investment. “I have used other gang and crane-set systems, but B.E.P.’s Big Panel Rotator
System surpasses them all,” said Arie Van Wyk, President of Van Wyks, Inc., of Waldo, WI. “The company’s ability to customize the system for our specific needs enabled us to use our existing equipment. B.E.P. was the answer for us.”
The Big Panel Rotator System includes a line of products and accessories built for delivering superior on-the-job performance. Their new craneset system is highly adaptable to below- and above-grade, cast-in-place residential and commercial concrete projects, and features an innovative one-man lifting hook device. In fact, the Big Panel Rotator System hooks to any conventional aluminum, steel frame or locking wood system on the market today allowing for installation of foam, electrical boxes, ledges, beams and other additions. Other system features include:
• Heavy-rail systems with corner gussets and high penetration welding to a standard .125 inch (full 1/8″) thick facesheet or optional heavy-gauge .160 inch (3/16”) face-sheet to create the strongest big panel in the industry—engineered to handle 1,450 lbs. per sq. ft. loads, based on ACI pour ratings.
• Custom-ordering capability to any length or width, and designed to fit any standard hole pattern.
• Exceptionally strong, yet thin and lightweight, construction for easy transport and stacking.
B.E.P. Forming Systems is an aluminum forming company like no other. This family-owned business is committed to providing residential and commercial contractors with technological innovations in form design and accessories. The company’s goal is to help contractors maximize profits by saving time and reducing labor and equipment costs. The B.E.P. Big Panel Rotator System is distributed through a nationwide network of dealer representatives. For more information about the award-winning Big Panel Rotator System, visit www.bepformingsystems.com or contact Jennie Peacock, Vice-President, B.E.P. Forming Systems, Inc., 325 Industrial Way, Fayetteville, GA 30215, Tel: 1-866-BEP-FORM (866-237-3676)
CFA Presents 2002 Contractor of the Year Award
The Concrete Foundations Association (CFA), an organization dedicated to improving the quality and acceptance of cast-in-place concrete foundations, recently presented its 2002 Contractor of the Year Award to David Martinson.
Martinson, Vice President of Martinson Construction of Waterloo, Iowa, is known throughout the industry as a hard worker constantly striving for perfection. An active member and supporter of the CFA since 1993, Martinson’s selection for this award recognizes his commitment to promoting the benefits of the poured wall industry through use of the newest technologies.
According to Ed Sauter, executive director of CFA, “Martinson’s commitment to his business, family, and community, and his constant goal of perfection, made him a natural choice for the CFA Contractor of the Year.”
The annual award recognizes the contributions of a poured wall contractor to the industry. This year’s award was presented at the CFA Winter Meeting held at Bonnie Springs, Nev. on Feb. 4.
As the third generation in the business, Martinson has developed the 53-year-old company to be the largest concrete contractor in the Waterloo/Cedar Falls area, an area that now boasts a total of 90 percent cast-in-place basement construction. The company completes 275 to 300 foundations per year and has a significant amount of commercial business. Specializing in residential and commercial work, they have a staff of two wall and footing crews, as well as flat work crews and waterproofing employees.
Dedicated to integrating the latest technology into his business, Martinson owns a Telebelt, boom truck and is the first user of the Geodimeter Total Station in Iowa. He is quick to credit his CFA membership for his company’s technological advancements.
“I learned about all the latest technologies from fellow members,” said Martinson. “This has propelled us ahead of our competition, because we are the only contractor in our area using computerized technology.”
Martinson was both surprised and honored to receive this award. “With so many great contractors in the CFA, it is a tremendous honor to be chosen for this award.” He also believes this award is a recognition of the efforts from the entire Martinson Construction team to provide high quality work while keeping customer service as the top priority.
CFA Announces 2003 “Basement of the Year”
One person’s challenge is often another person’s dream. Such is the case with many entries in the Concrete Foundations Association (CFA) 2003 Basement of the Year competition (sometimes referred to as the Basement from Hell competition). The 2003 winner, a 4,177-square-foot residential basement, comprises a unique combination of intricate details and site challenges.
The winning structure is a 5,500-square-foot home located in Olathe, Kansas. A custom designed home, the outside basement wall also serves as part of the in-ground lap pool and the foundation includes an oval shaped wall with a wall height dropping from eight-feet to four-feet that forms the goldfish pond.
According to Dan Bromley of ABI Corporation, Lee’s Summit, Missouri, the concrete foundation contractor for the project, he knew from the beginning that this basement would be a contender for CFA’s annual “Basement from Hell” competition. “I told our team from the project onset that this could be a CFA Basement of the Year winner, which motivated everyone to pursue success with as few problems as possible on this difficult project,” said Bromley.
The recipient of the Basement of the Year competition is selected by a vote at the World of Concrete each year. More than 100 votes were cast this year between Tuesday and Thursday in the CFA booth. The formal award presentation will be made at the Awards Banquet Luncheon during the CFA’s Annual Summer Meeting on Friday, August 8th, 2003 at the Kingston Plantation, Myrtle Beach, South Carolina. For more information on the CFA, attending the Summer Meeting and entries for the 2003 competition visit the Association’s website at www.cfawalls.org, contact the headquarters at 319-895-6940 or send and email to info@cfawalls.org.
In July 2002, ABI Corp., began work on the massive and complex project that boasted a total basement construction time of nine weeks. Located on the side of a steep incline, there is a 32-foot difference from the top of the foundation wall to the bottom level. The excavation for the foundation began at the bottom of the incline and moved upward. Once they had moved up to the next level, they were unable to go back downhill and correct any mistakes. To ensure that there were no excavation errors, ABI used the Geodimeter and AutoCAD technologies. With 13 different footing elevations, 24 wall heights, and seven different wall thickness levels, the basement defines an intricate project complete with detailed formwork. In total, the basement boasts more than 465 lineal feet of wall and footings, which required 266 yards of concrete. Wall setting took two weeks and all pouring was done in one day.
Bromley credits the efforts of the entire ABI team for the success of this project. “By project completion, approximately 90 percent of our team and been involved with this job,” said Bromley. “Our team did an excellent job planning and executing the project with very few problems. We are very proud of the project, as well as receiving this award.”
ABI Corporation has provided concrete foundation work to the Kansas City area for residential and commercial use for more than 30 years. Originally formed as Action Basements, Inc., they have been a CFA member since 1988. Gary Bromley, founder and Chairman of the Board of ABI Corp., served as president of CFA from 1995-1996
National Associate News
The CFA is introducing a new regular section to the newsletter – National Associate News. This will be the venue for national associate members to announce new products, changes in personnel, and other information of interest to members. National associates should submit their National Associate News news releases to Ed Sauter at esauter@cfawalls.org. CFA reserves the right to condense the releases to 200 words or less.
Durand Forms Appointment Enhances Company’s Position
Durand, Michigan, December 16, 2002—
Durand Forms, Inc., a leading aluminum form manufacturer in Durand, Michigan, has announced the appointment of Philip W. Fearnow as Vice President, Sales & Marketing, as well as three new regional manager positions. Fearnow’s experience includes manufacturing, corporate sales and technical services in the area of chemicals, explosives and pre-cast concrete. Fearnow’s initial efforts will be working and visiting with Durand distributors and customers to enhance their poured wall businesses.
Durand’s newest regional managers and their geographic responsibilities include Ted Barringer (MI, CA), Mike Klein (OH, IN, KY, Western PA and Western NY) and Gary Miller (MD, VA, NC, WV, NJ and Eastern PA). These regional manager positions
complement the existing three managers that cover the balance of the U.S. and Mexico.
Sam Keller, Durand Forms President & CEO said, “with new markets on the horizon, new technologies under development, and new leadership in the executive team, Durand Forms today stands stronger than ever to deliver precisely the fine products and services contractors rely on to succeed.”
Durand Forms is a global leader in manufacturing and distributing quality aluminum forms and accessories for residential and commercial contractor use. For additional information, contact Durand at 800-545-6342.
Outsourcing Services – A Practical Alternative for Any Business
Large and small companies alike are seeing more value in outsourcing services as the demand for professional expertise increases and employee base and payroll budgets decrease. “Outsourcing” as defined by the Outsourcing Institute of New York is “the strategic use of outside resources to perform activities traditionally handled by internal staff and resources.” A premier building products company executive says “we outsource services because they specialize in areas that we don’t and it frees up our time to concentrate on business. The fact that they make us look good is a bonus.” Small business owners, in particular, can benefit from the specific expertise of an individual on an as-needed basis for a fraction of what they would pay an employee in wages and benefits.
When selecting an outsourcing service, make sure to check references and reputation. Once you find a company you are interested in, schedule a meeting either on the phone or in person to get a feel for their services, reliability, and quality. Consider their scope of resources and ability to commit to a timely schedule. This initial meeting allows you to assess their capabilities and qualities, existing relationships, value added capabilities, personal and professional attributes. Ask specifically whom you’ll be working with and make sure that there is a comfortable fit. Discuss price and make sure they have flexible contract terms. Some companies charge by the hour and others by the project or service provided.
Sue and Arie Van Wyk recently solicited the marketing services of Wendy Shannon, president and founder of Shannon & Company in Chapel Hill, North Carolina, to assist them with a more professional look for their concrete contractor company—Van Wyks, Inc. in Waldo, Wisconsin. “We outsourced our marketing initiative because we do not have these resources internally and we need to stay focused on what we do best. We wanted a fresh, yet professional new look for Van Wyks Inc. and we were also ready to leap into our first web site in order to generate increased local exposure for our company and services,” said Sue Van Wyk. Shannon & Company designed a new logo, corporate identity package and straightforward one page web site (www.vanwyksinc.com) that was designed to grow as Van Wyks, Inc. grows. “Her expertise in our industry was invaluable in maximizing our efforts while not being demanding of our time. The site even offers our customers the opportunity to check the weather anytime in our area which is a daily necessary in our business,” Van Wyk added.
Many companies outsource conventional services such as accounting and legal expertise, but as companies expand their operations, there is a growing need to outsource graphic design, audio/video services, public relations, marketing and promotions, market research, general staffing, special event planning, catering, payroll services, computer and software assistance, and more. You’ll be pleasantly surprised with the access to world-class capabilities in your local community.
An annual survey conducted by The Outsourcing Institute (1998) reports the
Top 10 Reasons for Outsourcing:
- Reduce and control operating costs. This is the single most important tactical reason for outsourcing. Today’s customers are too sophisticated to accept the costs associated with an organization’s attempt to maintain singular control over all its resources.
- Access to world-class capabilities. Because they are specialized, outsourcing providers can bring world class capabilities to meeting the needs of their customers.
- Improve company focus. Outsourcing lets the company focus on broader business issues while having operational details assumed by an outside expert. It can lead to a clearer, more effective focus on the customers’ needs.
- Free resources for other purposes. Most often these are people resources.
- Resources not available internally. Companies outsource because they do not have or always need access to the required resources within the company. Sometimes this is due to expansion or reorganization. It may also be due to changing business requirements.
- Accelerate re-engineering benefits. Outsourcing is often a byproduct of another powerful management tool – business process re-engineering. It allows an organization to immediately realize some benefits from this process.
- Function is difficult to manage or out of control. Outsourcing is an excellent option for companies only when they can clearly articulate their requirements, expectations or needed resources.
- Share risks. When companies outsource they become more flexible, more dynamic and better able to change themselves to meet changing opportunities.
- Make capital funds available. Outsourcing is a way to reduce the need to invest capital funds in non-core business functions.
- Cash infusion. Outsourcing often involves the transfer of assets from the customer to the provider, such as equipment, facilities, leases and licenses.
Shannon & Company is a marketing communications firm in Chapel Hill, North Carolina serving a variety of clients locally and regionally with their outsourcing marketing needs. Further information on this company can be found on the www.shannonandcompany.com web site.
