This National Association Has Your Back…
I just returned from a week in Chicago where just about every concrete and masonry industry group was represented at combined meetings for the Alliance for Concrete Codes and Standards (ACCS), the Masonry Alliance for Codes and Standards (MACS) and the Concrete And Masonry Related Associations (CAMRA) executive council. These are bodies that I interact with on a regular basis and represent the interests of this organization and industry consistently.
CFA members define leadership in the market through this connection to the higher industry effort and bring further intangible value to their company. This past week in Chicago was direct evidence of the benefit and essential nature of the seat at the table that CFA maintains.
Within the circles of the concrete and masonry industries, the buzz is all about wood. The wood industry is coordinated and single-voice in what it offers to the market despite having as many or even more segments as the concrete and masonry industries combined. This means fewer low-to-mid-rise structures are being built with concrete due to the perceived lower costs and “adequate” engineering for wood systems. It also means that high-rise structures are the next target with lower structure weights and messages of sustainability piquing the interest of developers throughout the U.S. and Canada. Where is the common sense for rebuilding tornado-ravaged sections of the Midwest with concrete shells or schools with virtually indestructible concrete shells? The answer can best be attributed to message.
The first part of this effort has been developed by NRMCA in their new initiative labeled “Build with Strength”. You can Google that or go directly to the .com site with that title (no spaces). The strategic goal at CAMRA includes your opportunity at a grass roots level, participating in labeling and lobbying the real issues.
OSHA’s new silica regulation was another hot topic this past week. While the final ruling has been established, the CAMRA executives are not finished yet. You can read more about the regulatory impact to your business in the article we’ve included in this issue of Concrete Facts. Know that CFA, on your behalf, is part of this effort to find a more appropriate solution for this issue that protects from exposure properly without further handcuffing this industry in the competitive ‘market place’.
I want you to be informed and want you to know you are part of a much bigger effort. You don’t have time to do it yourself but if you have an issue burning, your CFA membership provides a vehicle for it to be heard and acted on. Together we can be vocally dominant, technically superior and strategically effective. That is why we are at the CAMRA table. Are you at the CFA table?
Getting the Last Word…
Eight years ago I accepted the encouragement from Ed Sauter, Jim Baty and the incoming President at that time, Dan Bromley, to enter the officer track for the Board of Directors. After joining the Board in 2004, I have looked back on the past twelve years to see unbelievable transformation for both this Association and the industry. At the Board level there are new, equally great and very energetic leaders for a strong future to those I came in with and join™ed. This transformation has taught me how important it and tradition are to the future of this industry and my business.
At CFA Convention 2016, this July, I will step down from this two-year presidency and give the reins to Dennis Purinton from Connecticut. I am confident in this transition and want to take this moment to write to you as two distinct groups of readers.
First, to those of you in companies that benefit from the CFA but are yet to become a member. As president, I have seen us accomplish more work than I can remember us completing at any time in the past. This is evidence of a strong association and proof of recovery to the point where the Board can return to strategic thinking and planned direction rather than survival. This Association has delivered an insurance program specific to your business and one that includes a Safety Committee, regular risk management advice and Toolbox Talks free to our members for safety training their workforce. We have transitioned to an ACI Certification for individuals to better inspire and represent our professionalism and evidences our ability to be the resource for technical information and the ones that customers can rely on for truths. As a company not yet investing in yourself through CFA membership, you have already gained from the CFA and it is likely you don’t realize it. Each of the contractors I sit with on the Board and many more that I meet at our events or talk with by phone and email can attest to the strength that comes from one thing, this network made up of each other. But you have to be part of it to get the most…that is the easy part.
Secondly, to the many great members of the CFA. While we are certainly not large in numbers for this industry, I want each of you to realize that collectively we drive, inspire and evolve this industry. Through our efforts we maintain logical and justifiable standards for the industry. The CFA Board now meets during both ACI Conventions so our Board can also participate economically on key committees to further the interests of the cast-in-place contractor. We don’t see this is as a legacy, like a foundation, but rather a process that continues to evolve. It needs your support and your involvement. It is important for you to know that CFA is your voice into codes but also your opportunity. We need persistence in this Association from both new energy and ideas as well as traditions and trusted or reliable experience. There is room for each and every member to get involved.
I have found first hand that the single biggest benefit to my company in the last twelve years has been what I have brought home from the CFA. I don’t make all the meetings, haven’t been to every Convention and I certainly can’t catch all of the emails. However, what I am able to attend, what I am able to stop and read, is never a waste of my investment of time and/or money. I didn’t know this upfront and I didn’t always believe it when those in front of me made similar claims. But I do believe it now and I have to give you the chance to see it as I close this presidential chapter. Thank you for supporting this Association and for supporting me, my company and your leadership.
SCHWING SUPPORTS “BUILD WITH STRENGTH” CONCRETE INDUSTRY CAMPAIGN
ST. PAUL, MINN. (June 1, 2016) – Schwing America (http://schwing.com), an industry-leading manufacturer of ready-mix concrete pumps and truck mixers today announced support of the National Ready Mixed Concrete Association (NRMCA) “Build with Strength” campaign. The campaign champions the strength, safety and value of using concrete construction.
“When it comes to building structures that must be strong, safe and provide long-term value, concrete should be the choice,” said Brian Hazelton, CEO of Schwing America. “We are proud to join NRMCA in helping demystify common misconceptions about concrete and educate the industry on choosing the safest options.”
Supported by comprehensive research findings from a study by the NRMCA, the “Build with Strength” campaign seeks to educate the building and construction industry on misconceptions, such as cost and environmental impact, surrounding the use of wood, wood products and other construction materials.
“Builders often choose construction materials, such as wood and cross-laminated timber for foundations and other vital support areas without fully understanding the safety concerns these types of materials can cause, especially in low- and mid-rise structures,” said Aaron Lian, Vice President and General Manager, Ready Mix Products for Schwing America.
Key messages of the “Build with Strength” campaign are the strength, safety and value of concrete construction. Unlike wood products, concrete creates solid, fire-resistant structures that resist mold, rust and rot with little maintenance. Concrete additionally provides a safer environment, as it becomes stronger over time, stands up to natural disasters and offers an environmentally friendly option when considering the longevity of the building and reduced CO2 emissions. For the building and construction industry, concrete gives virtually limitless options for architectural design, creativity and flexibility.
Schwing is proud to support the concrete industry, one that they have been part of for over 40 years.
Learn more at http://buildwithstrength.com.
###
About Schwing America
Schwing America is part of the Schwing Group, headquartered in Germany with plants as well as sales and service centers in several countries. Located in St. Paul, Minn., Schwing America manufactures industry leading concrete pumps, truck mixers, reclaimers and genuine parts for distribution in North and Latin America. http://schwing.com
Contacts:
Joal McAlister, Schwing America
651-653-4208 • JMcAlister@schwing.com
Robin Scherrer, Linnihan Foy Advertising
612.238.3007 • robin@linnihanfoy.com
Angela Fante appointed Ballinger’s Chief Structural Engineer succeeding Ed Zinski
FOR IMMEDIATE RELEASE May 23, 2016
Angela Fante appointed Ballinger’s Chief Structural Engineer succeeding Ed Zinski
PHILADELPHIA, PA — The architecture/engineering firm Ballinger is proud to announce the promotion of Angela Fante, PE, SECB, LEED AP to the position of Chief Structural Engineer. Ms. Fante began at Ballinger in the year 2000 and is currently an Associate Principal and Structural Group Manager. She succeeds Ed Zinski who has served as Chief Structural Engineer for 26 years and will continue to serve at Ballinger as a quality assurance advisor.
“Angela Fante brings to the role of Chief Structural Engineer a combination of vision, unrelenting drive, and passion for our clients. She has successfully led many of Ballinger’s most significant projects over the past decade,” Engineering Principal Jonathan Friedan said.
Mr. Friedan continued: “She is a superb engineer. She uses a full range of digital tools to make great design for exceptional buildings happen. She guides every step of the process from initial concepts to value engineering, to well-integrated detailing to field consulting. With a brilliant mind, worn steel-toed boots and a good heart, she makes everyone of us better. Angie is the ideal Chief Structural Engineer to succeed Ed and will continue to lead Ballinger well into the 21st century.”
Ms. Fante will lead Ballinger’s structural engineering into the realm of new analysis and modeling technologies, delivery methods, and innovative ways of revisiting traditional building solutions.
Ed Zinski and Angie Fante at Ballinger’s Philadelphia office Photo credit: Ed Wheeler
In addition to her responsibilities within the firm, Ms. Fante is currently a member of the Delaware Valley Engineers Week PR committee. In 2011, she was named Young Engineer of the Year by the Engineers’ Club of Philadelphia. She earned a Bachelor of Architectural Engineering and Master of Architectural Engineering from Pennsylvania State University. She is licensed in 16 states, including Washington, DC.
“It is both an honor and a great responsibility to carry on the legacy of structural engineering excellence at Ballinger,” Ms. Fante said. “I’m taking the lead at a time when our team’s ability to execute and deliver both consistent and innovative results for clients is strong. This is in no small part due to Ed’s prior leadership, his disciplined process and attention to detail, and instilling in the team the notion that anything is possible in structures if we remain vigilant in adhering to basic engineering principles.”
Mr. Zinski became Ballinger’s Chief Structural Engineer in 1990, having previously worked as vice-president of a national structural engineering consulting firm. During his tenure, Ed has led the advancement of the Quality Assurance / Quality Control (“QA/QC”) program across all disciplines throughout the firm, enhancing Ballinger’s reputation as one of the leading design firms in the country. Ed earned his Bachelors of Architectural Engineering from Penn State and Masters in Engineering from University of South Florida.
In recent years, Ballinger’s structural project engineering has been the recipient of the prestigious “Presidential Award of Excellence” from the American Institute of Steel Construction, as well as many other project awards from the American Concrete Institute, the American Institute of Architects, Engineering News Record, the Concrete Foundation Association, and the Delaware Valley Association of Structural Engineers.
Ballinger’s History of Chief Structural Engineers
Ballinger’s traces its founding to 1878, making it one of the first architecture/engineering firms in the United States. Excellence in structural engineering has a long tradition at Ballinger with a distinguished lineage of Chief Structural Engineers over the past 65 years including:
- Angela Fante; 2016 –
- Edward Zinski; 1990 – 2016
- Felix “Phil” DiNicolantonio
- Walter Bruhns
- John DeMoll
About Ballinger
Ballinger’s single office in Philadelphia houses a staff of 220 people, comprising three architectural studios, two multi-disciplinary engineering studios, and an interiors studio.
Ballinger Engineering is multi-disciplinary and includes mechanical, electrical, plumbing, life safety, structural, IT and controls engineering professionals.
Ballinger has made interdisciplinary design excellence the centerpiece of our firm culture, and today, we are nationally recognized leaders in academic, research, healthcare, and corporate planning and design.
About the CFA
Ballinger AE has been a professional firm member of the Concrete Foundations Association since 2014. They were the recipient of the Overall Grand Project of the Year last year for their work on the George Washington University – Science and Engineering Hall. For more information on participation in the CFA, contact Association headquarters at 866-232-9255 or visit www.cfawalls.org.
Formed Finish Not a Structural Concern
As published in Concrete Contractor Magazine, April 13, 2016. The Concrete Foundations Association explains the references supporting the decisions to form cast-in-place concrete with any material and why aluminum is not a structural concern when used as the form.
Question:
I constructed a basement foundation for a home owner last week with a new set of aluminum forms we had just received. With work increasing I didn’t have the time to wait for pre-treatment on the forms and I didn’t have the chance to condition the forms like I would have normally. After the forms were stripped, the owner contacted us through the architect to inform us that they had structural concerns for the condition of the wall and expected us to tear the walls out or provide an approval from a licensed engineer endorsing the walls for performance – Foundation Contractor (Arkansas).
Lines formed by the bubbling and subsequent movement of hydrogen at the interface of new, untreated aluminum forms and concrete prior to initial set are commonly misunderstood as cracks. This wall is more than fifteen years old and exposed throughout its duration with no protective coating. It is a yard wall formed for the sole purpose of pre-treating new aluminum forms, a process they no longer use due to manufacturer pre-treatments.
Answer:
Thank you for directing this technical inquiry to our attention. As Executive Director for the CFA and as Chair for the ACI 332 Residential Concrete Committee responsible for ACI 332-XX Requirements for Residential Concrete, I have been part of this conversation of aluminum and concrete for quite some time. I am repeatedly surprised by the design industry’s lack of understanding for the issues related to aluminum and concrete and positioning with an overly-conservative viewpoint.
You have asked my interpretation of the building code issues as they relate to the presence of aluminum as a forming material for concrete. I can tell you, with absolute certainty, that there is no provision of a current building code, commercial or residential, that prevents the use of aluminum forms for any concrete construction method, including that of vertical cast-in-place walls.
The primary references for residential codes, or mandatory compliance would be the IRC1 and ACI 332-142. A common statement in the IRC can be found in R402.2 Concrete:
…Materials used to produce concrete and testing thereof shall comply with the applicable standards listed in Chapters 19 and 20 of ACI 318 or ACI 332.
Before moving on to ACI 332, however, note that in the IRC, Section R404.1.3.3.6 Form materials and form ties, states:
…Forms shall be made of wood, steel, aluminum, plastic, a composite of cement and foam insulation, a composite of cement and wood chips, or other approved material suitable for supporting and containing concrete.
Here direct reference is given to the acceptability and general practice of cast-in-place forming for residential wall construction using aluminum forms.
The first official release of a concrete code for new construction other than ACI 318 was ACI 332-04, designed to be a companion code to the projects under the jurisdiction of the IRC. A review of ACI 332’s residential concrete code notes that there is zero reference to aluminum offered in the discussion throughout the document. Aluminum is not a common structural element seen used or attempted for use to be embedded in concrete walls (e.g. an anchor bolt or wind strap). This is because the code is minimum requirements only. ACI 332 produces another document, ACI 332R3 where the committee does discuss the presence of aluminum in proper use for concrete construction. Section 3.7.2 Metal, states:
…Aluminum that has not been treated or properly cured for use in forming concrete will produce a reaction with the alkali resulting in a damaged finished surface. These forms can be chemically treated or cured through a minimum of two contacts with concrete placements to prevent the affected surface conditions.
To be noted here is the reference to “finished surface” as the finished surface is not the structural condition for the wall. ACI’s Concrete Terminology, the common definition standard for all ACI documents provides two guiding definitions:
Finish — The texture of a concrete surface after consolidating and finishing operations have been performed.
Finishing — Leveling, smoothing, consolidating, and otherwise treating surfaces of fresh or recently placed concrete or mortar to produce desired appearance and service.
The finish, the surface condition of a concrete element is cosmetic and an issue of durability (i.e. frozen concrete affecting freeze/thaw cycling durability) rather than affecting the inherent nature of the structural performance.
The primary technical issue is that a reaction between aluminum and concrete produces hydrogen that results in one of two concerns, the hydrogen bubbles try to work out of the concrete surface and create lines, trails or pocks and if sustained contact lasts long enough, the aluminum cross-section itself is reduced…not that of the concrete.
There is no report or evidence in any building code authority or in technical guide reference to corroborate a concern for the structural integrity of the concrete when in contact with aluminum rather than aluminum that has been embedded. In fact, ACI 303R-044 states:
Aluminum, magnesium, and zinc all react with alkaline material in concrete, liberating hydrogen gas that causes sticking and bubbling on forms containing these metals. Extreme care and attention is needed to minimize these effects. Therefore, these materials should not be used to produce architectural concrete.
It is for these purposes, that aluminum form manufacturers offer pre-treated aluminum forms or concrete contractors condition their new forms with several non-exposed or test placements until the raw aluminum has been conditioned to be non-reactive with the concrete.
The surface condition for any concrete wall placed with untreated aluminum forms is a surface that can, if necessary or required, be finished just like any standard concrete architectural element that has remediation work to be performed. There are a variety of patching components that are available for the finish work on exposed concrete surfaces. Otherwise, any waterproofing or other coating will more than suffice in completing the work for long term, durable performance of non-exposed conditions. A cosmetic issue with a wall should never be a condition for failure to approve the structural performance unless it is first investigated by a licensed design professional that is fully knowledgeable of the conditions for the service of the structural element. However, contractors should always inform their client of the finished condition that they are prepared to deliver and communicate the options to the client for accepting or upgrading those finished provisions.
Jim Baty is the Executive Director for the Concrete Foundations Association after having served as Technical Director since 2001. He is immediate past chair of ACI 332, currently chair of 332-D for Footing and Foundations and a voting member for ACI 306 and C-655 with priorities of establishing better guidance and structure for residential concrete construction as well as ACI 551 and C-650. For more information on this topic, contact Jim Baty at jbaty@cfawalls.org. Find out more at www.cfawalls.org.
References:
- 2012 International Residential Code For One- and Two-Family Dwellings published by the International Code Council, Inc., 4051 West Flossmoor Road, Country Club Hills, IL 60478-5795 | Phone 1-888-422-7233 | www.iccsafe.org
- Residential Code Requirements for Structural Concrete (ACI 332-14) and Commentary published by the American Concrete Institute, 38800 Country Club Drive, Farmington Hills, MI 48331 | Phone: 248-848-3700 | www.concrete.org
- Guide to Residential Concrete (ACI 332R-06) published by the American Concrete Institute, 38800 Country Club Drive, Farmington Hills, MI 48331 | Phone: 248-848-3700 | www.concrete.org
- Guide to Cast-in-Place Architectural Concrete Practice (ACI 303R-04) published by the American Concrete Institute, 38800 Country Club Drive, Farmington Hills, MI 48331 | Phone: 248-848-3700 | www.concrete.org
Management By Objectives ‘MBO’
Management by Objectives is a well-established, effective set of principles for bringing an organized approach to business management. As the name implies, MBO establishes objectives as a means for guiding and directing the business toward achievement of desired results.
Vital Signs and Short Interval Management are also introduced in this article as companion approaches for running your business in a planned, organized and disciplined manner. The basic objectives of these approaches are to:
- Enhance management focus and efficiency
- Promote behaviors among employees that are proactive and accountable
- Implement practices for consistent follow-through among managers and employees
- Improve the organizations ability to achieve desired results.
- Establish communication tools for ensuring clarity of expectations and purpose.
There are five basic steps to MBOs:
- What do we want to do?
What is it exactly that we want to accomplish? This may be a simple statement or a more detailed plan, but an objective must be clearly stated if we are expected to achieve it.
- When do we want it done?
What is the schedule? How long will it take to accomplish the objective? What is the ending or due date for completing the initiative? The time element must always be includedto ensure progress and efficiency.
- How is it to be done?
What is the path we need to follow to reach our objective? As the HOW is defined, we will be able to identify the necessary resources and functions to include in our action planning. As a part of resource requirements, we also determine HOW MUCH DOES IT COST? The answers to these questions will become our budget, forecast or pricing model.
- By Whom?
Specifically, who is to be tasked/ assigned to the effort and given the responsibility and necessary authority for attaining the objective? Who needs to be involved, when, and for how long? This is the assignment of accountability.
-
Short Interval Management and Vital Signs are to ways that we will put Management by Objectives into practice. Except for wine, nothing improves with age – bad news usually gets worse and tactical advantages usually become opportunities lost.
The goal of Short Interval Management is to reduce management processes to the shortest meaningful cycle. This is defined as that period of time where the most complete information can be accessed that will support effective decision-making. The Short Interval Management approach is simply the application of Management by Objectives within a weekly or bi-weekly cycle.
A week is the shortest time in which most businesses are able to gather useful information about their performance – and act on that information to ensure profitable operations:
• Appropriate progress toward objectives
• Adequate and economical resource commitments
• Coordinated work activities
• Satisfied customers.
Measurement and evaluation of progress/results are most effectively performed in a weekly management cycle because it is a long enough time for meaningful achievements to happen and a short enough period to assure everyone’s complete understanding and retention of what results were expected, what tasks were delegated/assigned versus what actually occurred.
A week is also a short enough time interval for follow-up to be effective. Problems are attacked sooner rather than later, thereby limiting exposure to risk and curtailing waste of resources on a doomed undertaking, or conversely, to quickly take advantage of favorable conditions and reinforce positive performance.
When you increase your attention on any desired outcome, you have a better chance of making it happen. Short Interval Management promotes overall corporate discipline because its frequent repetition intensifies everyone’s focus on procedures, systems, expectations, follow-through and accountability.
The Vital Signs report provides one mechanism by which management can monitor key indicators of the company’s “health” at a glance, allowing prompt investigation and corrective action and rapid follow-through to take advantage of positive conditions. The Bi-Weekly Leadership Meeting is another way that management can apply Short Interval Management by Objectives through the review of results vs. targets.
The Financial Plan (Business Performance Projection) sets the foundation of objectives for these management disciplines. Each element of Sales, Cost and Expense is assigned a target. SIMs simply breaks these objectives down into weekly increments.
While the Short Interval approach is extremely effective in focusing management attention, it does not serve the need to periodically perform a more comprehensive review of the company’s overall position. We need to look at financial results after monthly and year-to-date adjustments have
been made to be able to recognize and adjust to more slowly evolving and emerging trends that might not be sufficiently perceptible in a weekly cycle.
Vital Signs Meetings are conducted bi- weekly, bringing together the company’s key staff to:
• Review selected performance measures,
• Identify and interpret disparities between planned and actual results, and
• Plan actions that are appropriate to the team’s findings.Adopt the “Big Business” practice of holding Bi-Weekly Vital Signs Reviews as a forum for selected staff to review selected sales, administrative and operational performance measures that are viewed to be critical factors in gauging the health of the business and to monitor progress toward achieving company objectives.
When you go to the emergency room or your physician, the first task they perform is to take your vital signs (Pulse, Heart Rate, Blood Pressure, Temperature, etc.). These measurements, when compared to the baseline (normal), will lead to a diagnosis of the problem and in many cases the needed treatment of the ailment. Businesses, and departments of businesses, have these same vital signs. From there comparison to the baseline (normal) or an objective set, will again lead our managers to a diagnosis of the problem and then the necessary treatment to make the department or business “healthy”.
The Vital Signs are set up in a simple format that requires identification of the four to five most critical measurements in each area of management or in each department. These vitals are then shown in the following order:
1. Objectives: Each Vital Sign has its “norm” or an objective set for each period. These objectives should be based from the Financial Plan and consistent with market conditions.
2. Results: For each period, the results to date will be tracked and reported on the form. A comparison to the objective is made and pace is determined. Any contributing factors to the result if important are listed to assist in facilitation of discussion.
3. Action: For each objective and results, action is identified to impact the result enabling an enhancement or improvement to the result through implementation of these strategies.
Setting a “core” agenda is important to the ongoing success of Operations Reviews or Vital Signs Meetings. Repeated review of the same types of information will improve the team’s ability to recognize trends, to make projections for the likely financial impact if the trends continue and to evaluate what adjustments should be made.
Bi-Weekly Vital Signs Meetings are established to serve the following objectives.
- Improved Financial Control and Accountability – With the discipline of bi-weekly preparation and reporting, staff members will become more aware of the specific areas that impact the profitability of the business. Enhanced awareness leads to improved control. Vital Signs meetings also promote increased accountability for financial performance because the results are made more visible and traceable to specific individuals and functions within the organization.
- Enhanced Communication – Bi-Weekly Vital Signs Meeting participants will exchange information on a new level, promoting clearer understanding of “the Big Picture” and promoting clearer understanding of “the Big Picture” and promoting greater involvement and shared commitment among the staff. Any perceived barriers to communications should disappear as a by-product of Operations Reviews.
- Clear Expectations – Reviews of business goals and objectives will be linked and tracked with the Employee Performance Evaluation System, the Financial Plan (Annual Budget) and the Incentive Plan for continual reinforcement and emphasis.
- Organizational and Individual Development – Vital Signs provide an avenue for accelerated management and organizational development. Each participant’s general business knowledge and skill sets will grow as they prepare for and participate in the bi-weekly meetings. Improvements made in one area of the business are often emulated and applied in another.
- Owner Benefits – Vital Signs Meetings present an opportunity for the “Owners” to: maintain the “Big Picture”; demonstrate leadership; instill drive and accountability in others; and, Assess staff capabilities, delegate more authority down the line and exchange ideas and get buy-in on suggestions for operational and administrative improvements or any other initiatives that have potential for enhancing business results.
As you grow your company, (and your profitability), you need to realize; “if you don’t run your business, your business will run you.”
ABOUT THE AUTHOR
Peter Wallace, RWI Business Solutions, is a strategic and results driven management executive with proven abilities in business management, strategic planning, new market channel development, project management and personnel management.RWI Business Services is a diverse team of seasoned business professionals advising clients on all aspects of business ownership and the challenges presented by a dynamic, ever-changing marketplace. Based upon the objectives of a specific engagement, our advice may be limited in scope or broadly applied across such areas as operations, finance, and/or sales and marketing; and it may incorporate business development strategies, process improvement, asset conversion strategies, profit enhancement, or even business turnarounds.
Emergence of Risk
In the dynamic world we live in today, the only constant is change – whether it’s yourself, your industry, or the environment around you…
Take a moment to think about your business. How has it changed in the past five years? Is your environment the same? How will that environment change in the next five years? Sure, some things like company culture can stand the test of time – but what about things outside of your control? The development of new technology, the loss of a key customer or supplier, or a downturn in the economy all impact your business.
As part of the CFA 360° Insurance Program we believe in a comprehensive approach to managing risk: the Total Cost of Risk (TCOR) approach. This concept takes into account a company’s hard and soft costs which contribute to the overall cost of their insurance program. Historically the role of the insurance broker has been centered on reducing hard costs, like premium. While this will always remain a part of the TCOR model, making it your only focus leaves you and your business vulnerable to significant risks associated with soft cost exposures. Examples of soft costs include insufficient limits, losses below your deductible/retention, coverage gaps, and uninsurable losses.
The changing environment your business operates in can lead to an emergence of risk that significantly impacts your TCOR. Often times these developments are difficult to predict, making them hard to insure. Without a focus on the soft cost aspect of TCOR, your business can be left incurring a cost which you did not plan for, and thus, do not have the capacity to absorb. Below are three examples of how the emergence of risk can impact a business.
Technology – Cyber Liability
While we’ve all been aware of the advancements of computer technology and internet connectivity for many years, the risks to businesses have been relatively unknown. For the longest time, many individuals within the insurance industry felt the exposure was limited to large corporations conducting their primary business online. As big box retailers moved from storefronts to websites the risk of a cyber-attack on client information became apparent. What was unknown, however, was the potential scale and cost of such attacks, as well as who could be affected. Target Corp. experienced perhaps the most public breach in recent years when nearly 40 million credit and debit cards were exposed. Target settled with Visa for roughly $67 million, with MasterCard settlements expected to reach similar levels, according to the Wall Street Journal. Many insurance carriers began offering products years ago to cover such breaches, but they unfortunately did not have the loss experience to develop strong products or provide adequate limits. Few in the industry really knew what level of coverage – if any – individual businesses needed.
This is an excellent example of an emerging risk. The expansion of the internet and online commerce happened so quickly that many businesses were unprepared to keep up with the trend, let alone protect themselves against potential exposures associated with it. Within the construction industry, more and more companies are collecting information from their clients online. Whether it’s emails addresses, phone numbers, or billing information, the ease of conducting business online is making the transfer and storage of sensitive information a necessity. We often think of a cyber breach as a direct attack on your company. In some cases, however, smaller companies can be brought into large lawsuits. Hackers can use your network as an access point for a larger company – perhaps one of your supplies or customers. This leaves your business vulnerable to the cyber liability associated with any loss.
Beyond the hard cost ramifications of having to pay for a cyber related lawsuit out of pocket, businesses have to deal with the soft cost ramifications of not carrying enough limits, damage to their reputation, and the potential for lost business. Engaging the CFA 360 Insurance Program in a discussion about how the emergence of cyber liability exposure can impact your business is a great way to protect your company and help reduce your TCOR.
Loss of a Key Supplier
The emergence of risk can manifest itself in many different forms. As we saw with cyber liability, it can be the development of technology that totally changes the way you operate. In other cases, however, it can be something more predictable. The loss of a key supplier can leave a contractor scrambling to complete a job or fill an order. It’s something that many business owners worry about, but not all plan for. Suppliers of parts, materials, and equipment are just some examples of partnerships that – if lost – can drastically impact your bottom line.
When looking at the risk associated with the loss of key suppliers, it’s easy to think of it as a simple inconvenience, but what about the monetary impact? Do you know what it would actually cost you to replace that supplier? How long would it take? Will the next partner be as reliable as the last? These are all considerations when evaluating the total cost of this risk. The new supplier may cost more, take longer to deliver, or have a more limited product offering. If you’re in the middle of a job, the loss of a key supplier can leave you weeks behind schedule, resulting in damage to your reputation, financial penalties, or an inability to take on additional work.
Market Downturn
Markets, economies, and demand can be cyclical. People and businesses prosper in good times and feel the pain in bad. The construction industry is highly sensitive to these swings. One type of emerging risk that nearly every contractor will confront at multiple points in their career is the risks associated with a market downturn. In these situations businesses with a plan stand the best chance of survival.
The unfortunate reality is that a downturn in the economy often results in a reduction in the workforce. According to Economics Modeling Statistics International (EMSI), nearly 2.4M construction jobs were lost during the most recent downturn (2007-2012). Other companies, however, find a way to diversify their product offerings to keep business going. Contractors find synergies in the work they do and adapt to take on new jobs in segments not hit as hard.
There are many costs to these types of industry cycles. Some lost employees may change industries, leaving a talent gap to fill once business picks back up. Other companies have to invest in new equipment or processes to allow them to enter new niches. These are examples of soft costs that are not often factored into the cost of risk. The common thread among companies that are able to weather these storms is the vision to plan ahead and adapt to their changing environment.
Preemptive Fight
The most effective way to limit your exposure to emerging risks is to anticipate them before they occur. The CFA 360 Insurance Program has the resources to assist contractors in developing business continuity plans, conduct coverage analysis, and help identify industry trends. Our experience with similar clients and relationships with insurance carriers gives us access to niche experts that specialize in a broad spectrum of risks – even those that are still developing. The CFA is engaging its members to assist in the creation of an emerging risk Heat Map. The Map allows members to place a series of risks on a sliding scale depicting the frequency and severity (business impact) of certain exposures.
By collecting this feedback from members, the CFA Insurance Program can more effectively address the emerging exposures in the industry and focus of solutions that help limit the Total Cost of Risk. Reacting to a loss after it occurs can leave your business vulnerable. The Heat Map is one way the CFA is preemptively engaging members to prevent costly losses before they occur. It is impossible to plan for every type of emerging risk. With the help of a strategic partner like the CFA, however, it is possible to mitigate the impact these risks can have on your business’s Total Cost of Risk.
ABOUT THE AUTHOR
Tyler James is a commercial insurance broker focusing on construction industry business for Arthur J. Gallagher & Co. His clients include general and specialty contractors seeking to reduce their total cost of risk. Working with the experienced Construction Practice Team at Arthur J. Gallagher & Co., he provides strategic guidance around contract review, claims management, safety practices and much more. With experience as a commercial insurance construction underwriter, he has a unique perspective, as well as the ability to creatively sell construction clients to the marketplace. Currently, Tyler is in charge of growth and content for CFA 360 ̊, the insurance program for CFA members, with a goal of connecting with CFA members interested in reducing their total cost of risk through engagement with a broker who delivers business insights tailored specific to concrete contractors. You can reach him at 312.416.6826, by email at Tyler_James@ajg.com.
Lead From Need: Four Ways to Motivate Employees
His CEO performance review is in and Scott is clearly alarmed. Unless next quarter’s KPI goals are met the Governance committee will ask for his resignation. He grabs his phone and calls Jarin, his gregarious college roommate and the person who transformed Silicon Beach’s most dysfunctional company into one of its most electric. “Jarin, I need your help. My staff is not producing like they once were. They are lethargic, apathetic, unmotivated, dis…”
“Disengaged,” interjects Jarin. “So how are you keeping your people engaged?”
“We’ve been investing heavily into employee engagement programs, but they’re not really working. We keep pouring money into recruiting and retaining the best. We even keep increasing salaries, benefits and perks, basically giving them everything they want, but nothing’s working.”
“The problem is you’re giving them what they think they want, but not what they really need,” explains Jarin. “Your employees are emotionally detached; their real needs aren’t being met. Fat salaries and perks are great, but what they really want is to be inspired, connected and living a life of purpose. They need to feel valued. As their leader you need to lead from need. Once our basic survival needs have been met, we all aspire to satisfy the four deeper needs: connection, contribution, freedom and growth.”
Jarin is right and is part of a new wave of leaders who know that to get the best out of someone you need to coach and empower them to greatness. As a leader in your organization you want to ensure that your employees feel they are:
• Connected: building relationships with others
• Contributing: doing something meaningful
• Free: have a sense of choice and autonomy
• Growing: developing personally and professionally
Connection
Companies with employees who have strong personal ties to each other have far higher engagement rates than those that don’t. To connect with your employees, create greater trust and loyalty by being more authentic. Great leaders don’t fret over public opinion and neither should you. Let go of who you think you should be, and just be yourself. You will gain their trust and respect in the process. Be vulnerable. Show them the real you. We all have the same fears of not being good enough, smart enough or worthy enough, so why pretend we are the exception? The best managers connect deeply with their employees by paying attention to what’s important to them. Carve out some time each week to grab lunch or a coffee with your key team members. Find out what they enjoy doing outside of work and get to know them personally. Finally, let them know that you and the company care for them. As their need to belong is met, they will give more of themselves, which, in turn, fuels their next need: their need to contribute.
Contribution
Studies show employees are happiest when they know they are making a difference and helping others. Often their contribution goes unnoticed. Metrics for measuring an employee’s contribution should shift from measuring their individual performance to measuring their team’s performance. How are your staff members influencing those around them? A staff member with excellent soft skills who constantly uplifts his fellow employees is an incredible asset to your team, yet this won’t show up in any assessment. To help your workers feel they are contributing something meaningful you can try recognizing and publicly celebrating their accomplishments as often as possible or sharing a client story that shows your employee the difference they are making in someone’s life.
Freedom
Self-direction is the key to performance, creativity and engagement. The real you only shows up when you feel free. Employees are far more loyal and productive in workplace environments that respect their freedom and encourage their self-expression. To ensure your staff feels a sense of autonomy remind them that everything they do is a choice. Choice is power, and when your employees believe they have a choice they will become more engaged in the process. Align their choices with their values, not their fears. When we choose from fear, our actions lack power. When we choose from our values our actions have more power, more meaning and more energy. Give your employees more flexibility to accommodate their schedules. What long-held beliefs might be blocking new win-win opportunities? Decentralize whatever authority you can to give your workers more decision-making power. This will empower them and make your company much more efficient.
Growth
If your staff feels they are not making progress in their own personal development they will soon become disconnected and seek opportunities elsewhere. Ensure that each employee is constantly challenged so that they can grow. The greater a person’s belief in their own power to influence an outcome, the more likely they are to succeed with a new challenge. To help your employees grow, try building confidence. Challenge any belief they might have that is limiting their performance. For example, if an employee thinks they aren’t experienced enough to manage a project you can remind them of their unique strengths and capabilities.
Another way to promote growth is modeling. Have inexperienced employees watch other colleagues with similar skills perform more advanced tasks. Seeing others with similar abilities succeed at a task will help them develop positive, “can-do” beliefs. Recognition and positive feedback are key to helping your employees feel more competent, motivated and open to growth. Negative feedback can devastate those with low self-esteem. Finally, optimize the environment. Create a vibrant, energetic, stress- free workplace that encourages your employees to get the food, exercise, rest and water their bodies need so they can perform at their best.
The most successful CEOs in the world unleash the energy and creative power of their employees by honoring those four needs: connection, contribution, freedom and growth. They know that what really motivates people – once their basic financial needs have been met – is their desire to grow and develop as human beings, connect and collaborate with others, and contribute something to a worthy cause. Like Jarin, you can inspire your employees to reach their full potential by making your company a place where those four needs will be met.
ABOUT THE AUTHOR
Ascanio Pignatelli is an award winning speaker, seminar leader, coach and author of the forthcoming book Lead from Need. He is the founder of ApexCEO, an executive coaching and leadership development group that helps C-level executives develop the leadership and communication skills to create more engaging workplaces. To book Ascanio for your next speaking event or workshop, please call him at 310.913.2313 or visit www.apexceo.com.
Elevating Board Form Concrete to a Marketable Aesthetic
If the Great Recession has taught us anything as a company, it is that a concrete construction company can be extremely resilient when everything is on the line.
In order to be resilient, our company had to be creative and apply ourselves to finding work and finding uniqueness any way possible. Out here in the West, we noticed an architectural trend in housing toward what was being referred to as a “contemporary aesthetic”. This challenged us to see our ability as not just a concrete contractor but to apply our craftsmanship and generate a marketable product.
Now, whether or not a concrete contractor really knew what contemporary aesthetic meant was somewhat beside the point. What we saw changing in architecture was that contemporary was a trend to save cost. The designs were simple, straight lines and crisp, clean forms. Gone were the high pitch roofs, eyebrows and extensive elevating forms. Roof lines had become flat and simple. It seemed the architectural change offered ways of achieving structures with less cost because land prices recovered quickly. Builders and developers condensed forms and simplified designs to make housing affordable in our market.
As the architecture changed to the contemporary or more modern style, it was natural that concrete would participate and in some ways return to being featured. While concrete would be more expensive, it had important value among three timeless, organic and natural elements (wood, stone and concrete) that elevated the sturdiness of housing or grounded it when combined with steel and glass. We found owners began developing an interest in a combination of concrete and wood in a “rough” look for their homes, desiring a board form concrete finish. We started with a few small board form jobs during the deepest parts of recession in 2008 to 2011. These jobs gave us some experience and opened our minds to the possibilities. Utah then recovered more quickly than some regions of the country and all of a sudden we saw a number of jobs proposed with a lot of above grade, board form concrete walls. Not all were full or even significant amounts of board form. More than a few of these projects were patio or retaining walls where the board form anchored the style of that specific space.
Our first big job was designed by an architect from Seattle, Washington with considerable experience designing uninsulated, above-grade concrete having an exposed architectural finish. This look can be a real challenge and after several mock-ups, which we have come to realize are extremely important on every architectural wall, we decided to go with a liner of 6 in. wide ruff-cut cedar.
We looked into information from ACI and talked with local consultants before deciding to pretreat the cedar with a cementitious covering to draw out the sugar in the wood. Our research identified that natural sugars in the softer parts of the wood grain act as retarders to the hydration process. The cementitious covering was intended to pull those sugars out and leave the wood neutralized for our casting operation.
Once the project started, however, we realized the size and scope of what we were dealing with and underestimated the amount of cedar we would need. This project had board form in the site work, three fire places each thirty-five feet tall, retaining walls and enclosure walls. Needing additional wood, we didn’t have the time to pretreat cedar so we went forward with untreated wood. The resulting finish between the treated and untreated cedar showed zero difference. We saw nice horizontal lines and a crisp look with both. We didn’t get a lot of wood grain but we did see clear expression of the knots. This remained confusing to us with all the warnings of retardation due to sugaring. I deduction was it may have been due to the form release we use. We strongly suggest mocking up your finish before attempting it without pretreatment or some other precaution against the sugaring potential.
Designing the Mix
The mix we developed through the mock-up process to minimize bug holes consists of a 7-bag mix with 30% fly ash replacement. We added a mid-range water reducing admixture to increase flowability and lower the w/ cm. This permits us to place concrete at a 6 in. slump (+/- 1 in.), which we test out of the truck. The mix does tend to get a little hot so when the ambient temperatures are above 60 ̊F we add a delay-setting admixture. Over the last four years this mix as proven consistent and has yet to disappoint us in its workability or durability…other than the heat it generates. There is an extra cost of this design mix but the trade- off to performance in the architectural finish and placement consistency is worth the premium.
Attaching Board Form to Aluminum
One of the biggest questions that came up was the best way to attach the cedar boards to our forming system. Most of the concrete contractors we know use aluminum forms, like we do. Having access to conversations with others was important for our research and this network helped us come up with two plausible options.
At first we tried using self-tapping black screws. These are your common, inexpensive drywall screws and they worked well enough. However, we found that the screws were very difficult to locate when it came time to remove them and the liners.
We received a suggestion then to try a very sturdy steel screw called “Remove Right”. This screw as a 1/4-in. hex headed end that is painted orange, making it easier to install as the head is less likely to strip and doesn’t snap off from torque. This screw was far easier to find, remove and then reuse.
We also discovered through our challenges that you need to consider the form tie. With our aluminum forms, we needed a tie that has a 1 in. break-back notch. We talked with the manufacturers and found we could order them. We use a multi-tool to cut a slot in the boards to accommodate the tie and keep the concrete crisp around this penetration.
Moving Forward
One of the challenges we faced with the acceptance of our board form finish was the lack of wood grain. We knew we would encounter owners that would want to see more grain expressed in the finished concrete surface. We started by distressing the grain using a wire wheel brush to remove the softer wood from the grain. The harder wood was left as raised areas and the grain had almost a burnished surface. It worked well enough, but in the end we decided that it took considerable time and still didn’t give us the consistency. Depending on the attention we gave the wood, we would end up with additional unnatural lines or wearing.
Our current solution is to use a weed burner over the entire board surface. We then use the wire wheel to take off the charring. This method has proven to produce the most beautiful wood grains with highs and lows. We then seal the burnt cedar with a standard wood sealer. This has provided us the actual control of the sugars in the wood and eliminated the expensive and time- consuming step of pre-treating the wood with a slurry mix. The sealer has also helped us more consistently reclaim the wood liners for multiple uses.
Basic Costs
As a whole, the experience is our major investment. For materials we end up with about $2.50 per square foot for the cedar. We have mastered the reuse of the wood such that the cost to prepare the boards by burning, char removal and sealing is very minimal to the cost of the wall, although you would want to figure it in that first start-up, perhaps a $1.00 to $1.50 per square foot. This gives us a rough board liner cost of about $4.00 per square foot. Compare that to some of the labor costs for installing boards or for multi-use liners.
We believe the patterns and the results are speaking well for the time and energy we have invested in carving out this market niche or rather a response to the architectural trends of our market. For more information, give us a call, we’re proud to be part of the Concrete Foundations Association and have benefitted from talking through some of this development with several of our peers along the way.
ABOUT THE AUTHOR
Kirby Justesen and his wife Pam reside in the Salt Lake City, Utah area where he is an owner at SCW Footings and Foundations. He is a leader in the concrete industry, now serving for his second time on the Board of Directors for the CFA and is a voting member of ACI 332, the residential concrete committee for ACI (www.concrete.org). Kirby has served as the chair of the CFA Technical Committee and has been part of the development of the three CFA Standards published to date.
Previewing CFA Convention 2016
Spring has sprung and no doubt your company is headed out the door in a frenetic pace. Most of the U.S. residential market is ramping up for a solid 2016 forecast as we have heard from so many of you. While PCA has tempered their projections from the Spring of 2015, all indicators are for a good and solid year for the residential construction industry. In fact, with so much at stake later this year for elections, many presume that there will be a strategic effort to increase the pace over the summer to fall.
Right in the midst of that is CFA Convention. Each year we answer the question by those that weren’t able to attend the previous year (but so much desired to), “why is it that CFA’s convention is held during the busiest time of the year for the foundation contractor?” After fifteen years on board with the CFA, I believe I have finally come to know the market well enough and the businesses each of you manage intimately enough to be able to see it. It isn’t easy, that’s for certain but there are several major variables that permit and even direct Convention to have its own place in the middle of the year.
Convention is a family-friendly environment – The values of business in this industry start with the family. It is important to maintain that feel and to celebrate it while the kids are able to take advantage of a great destination. Today’s kids become tomorrow’s management. They get a chance to grow up in the environment.
Convention is a strategic break – In the midst of a busy construction season, by the time July rolls around the schedule should be in good shape and company processes controlling the daily schedule. It is also at this point when the pressures are mounting and a break is needed to be best prepared to lead. Taking two to three days away can be the right refresher to renew passion, commitment and fine tune leadership through interacting with your peers and realizing you are not at this alone.
Convention builds identity – The rest of the concrete industry is defined by off- season and late-season opportunities for learning. These are times when the cash is the hardest to come by or the pressure is the greatest trying to fit things in. Here in the middle of summer there are no other major concrete industries representing themselves or gathering. This gives way to CFA Convention being the right location to bring together all industry interests, contractor and technology alike to make true the identity of the ‘Largest Gathering of the Poured Wall Contractor.’
Conflicts come and they go. Some of them are unavoidable and some of them are value-driven. What you can’t mistake is the value of being in a space and time with others that have your responsibilities, your mindset and also that of your next generation of leadership.
