Crisis Communication Plan Crucial to Successfully Surviving the “What Ifs” in Today’s Marketplace

One element of a communications plan that is often overlooked is the all important crisis communication plan. While the construction industry is accustomed to having a written plan for a jobsite accident, such documents also are essential to guide your firm should the media call you and put you in a reactive position for a variety of other scenarios, ranging from layoffs to a disgruntled employee or a contested building project. With a review of the following, you can take the initial steps in assembling the necessary roadmap to effectively communicate in a crisis.

ASSEMBLING THE TEAM

Begin the process of creating a crisis communication plan by collecting a cross-section of your organization, to include someone from accounting, human resources, marketing, project management and more. You may even consider including your legal counsel either formally as a participant in your meetings or informally through a review meeting once your plan is assembled. Be sure everyone selected for the team recognizes the importance of this committee and its role in helping the organization survive a crisis – no matter how big or small. Obviously, it is crucial that all members be in a position to make decisions, represent their role/division, as well as be available. Don’t make the mistake of putting something on the committee simply because of their title or role in the organization. Even more important, this group should meet frequently so all members are familiar with the other members, their style and preferences should a crisis occur.

IDENTIFY THE WHAT IF SCENARIOS

With the proper players assembled, your team should identify the possible scenarios you are likely to encounter. Brainstorm these “what ifs” and then assemble action plans for the scenarios, to include a detailed list of who to call for what and when. Establish a chain of command, recognizing that it may make sense to alter the day-to-day hierarchy as successful execution of this plan requires different skills and objectives. This action plan should be reviewed periodically and updated, especially when your firm enters a new market, secures a high-profile project, or changes substantially in any fashion. In addition to requiring all members of the team to keep a copy of the most recent plan at their residence, be sure to keep copies of the plan in numerous other off-site locations in case of disaster at your corporate headquarters.

WHO SHOULD TALK TO THE MEDIA?

Contrary to popular belief, the highest ranking official at your company is not necessarily the best person to be your corporate spokesperson. Regardless of whether or not he or she is a polished speaker, the appropriate person should not be the highest employee in the organization since that leaves nobody to clean up any blunders or media mishaps. For example, if your president says something out of turn or disseminates the wrong information, there is nobody to retract or set the record straight. Obviously, there are several exceptions to this rule and it is often appropriate for a president to comment on, for example, an employee death due to a job site accident. However, such remarks should be confined to condolences to the family while the cause and explanation should be delivered from someone lower in the company in case controversy surrounding the comments arise. The ideal person should have a high enough title and position in the company to command the respect necessary to serve as a credible source, however, his/her role would allow them to say they don’t know the answer to something.

WHAT ARE YOU WILLING TO SAY?

By clearly identifying what you are willing to disseminate as a general policy, you will be able to respond to a crisis in a much more effective manner. As a general rule, privately-held] companies should be willing and prepared to disclose anything publicly announced, information on products/services active in the marketplace, items of local interest, facts – such as corporate employee figure (in round numbers), as well as policies and practices that are well-established. However, a privately-held company should not be expected to answer questions regarding financial projections, operating results, market share, marketing strategy, products under development, legal matters and upcoming changes. That does not, however, preclude the media from asking about these matters. Document the answers to standard corporate facts to ensure they are readily available.

ANNOUNCING THE PLAN

Once the plan is assembled, it is important to announce the chain of command and procedures internally. This overlooked step often results in the best plans getting thrown off-track simply because the receptionist mistakenly provided too much or wrong information to a reporter. As such, make sure your front-line employees are made aware of the policies and procedures, as well as appropriate contacts, regarding the media so they aren’t caught off-guard by a reporter at a job site or on the phone.

PUTTING THE PLAN TO GOOD USE

Crisis communication is just one element of a public relations program. While crucial to surviving a crisis or challenge, the documented contact list, policies regarding data dissemination, as well as identification of key contacts and spokesperson(s) can also be used as a proactive tactic in sharing positive information about your fi rm. Avoid the trap of using your communications committee merely for reactive tactics by also seeking input on positive ways to communicate corporate information to the community and the industry. Ideas include highlighting community sponsorship and participation in charity events or other causes, new hires, corporate anniversaries and functions, speaking engagements, new technology and comments on trends. This effort also will serve to build a solid working team in proactive, not merely reactive, crisis scenarios.

If you are interested in developing a crisis communications plan for your company, engage your local marketing consultant, discuss your needs with your attorney or contact Constructive Communication, Inc. for assistance (614.529.6551).

Wendy Ward, Vice President, Constructive Communication, Inc.

wward@constructivecommunication.com

GPS Management Tools That Work

The costs of running a business, any business, are rising. Talk with any owner and you are not likely to find any argument to that statement. So as the rising costs of operation tighten the hold on profitability—what are the options to fight back? What are proven means you can employ to improve your chance of maintaining margins or possibly improving them? One way to uncover these is to look among your peers, the companies that are interconnected with you in the network that is the CFA. Here you will fi nd companies thinking creatively and using technology to not just offset these rising costs but also find improvements in their business that are often immeasurable. One such example was demonstrated during the recent CFA Annual Summer Convention in Stowe, Vermont as Bruce Neale of Modern Foundations, located in Woodbine, Md. described the struggle and now success of adding Global Positioning Systems (GPS) to their work equipment.

GPS: MANAGEMENT TOOL THAT WORKS

Fluctuating gas prices, rising insurance, traffic violations—sound familiar? All are pressures on management to maintain the cost of business operation. Fuel costs alone, although unreasonably high, have actually been increasing drastically for the last decade. From 1998 to the present, the average price of gas in the United States has increased nearly 300 percent according to gas price history on zFacts.com. The construction industry uses gas daily and in extreme amounts. The rising price of oil has even forced some construction firms to add surcharges to projects in order to stay ahead. So what if you could discover, from listening to a company that you share a common interest with, an effective way to reduce their gas use. Through the use of GPS not only can the rising cost of fuel be mitigated, Modern Foundations has uncovered opportunities for improving communications, keeping more efficient records, preventing theft, increasing recovery and saving on insurance.

VEHICLE TRACKING

GPS allows a central unit to track where smaller units are located. By tracking the routes a vehicle takes each day, a business can see the direction the trucks are traveling and if there is a better, more efficient way of reaching their destination. Modern Foundations implemented the use of GPS to monitor their trucks and saw these results: Their trucks would travel the main highways from the central office to job-sites because they did not have to pass a scale house leaving the office. However, often on the return trip many drivers would take out of the way rural roads to avoid a scale house knowing it was positioned between them and the yard. This would take them several miles in the opposite direction and add as much as 30 minutes to their return to the office. Not only did this result in extra time but also used unnecessary amounts of fuel, and potentially even more significant—pushing many of the employees to then receive overtime because of their choice to take the longer route.

Another wasteful use of fuel is one that many people are aware of yet do not change — speeding. According to fueleconomy.gov speeding can lower gas mileage by 33 percent at highway speeds. As an example of how GPS can lower costs once again, Modern Foundations was able to reduce their highway speeding by 10 mph. Observing that their drivers traveled on highways at a speed between 75 and 85 mph, they started weekly speeding reports which brought their range of speed down to 65 and 75 mph. They now recognize one person each month for having no speeding events over 70 mph.

IMPROVED COMMUNICATION

Another benefit which Modern Foundations has discovered by implementing GPS is a reduction in unnecessary radio calls to determine crew location or arrival time. GPS has added the ability for crews to identify their locations easier and their estimated times of arrival. This in turn has strengthened the relationship with their customers as the client can be advised more promptly if a crew is running behind and when they will arrive.

Crews have also benefitted from the addition of GPS to their vehicles as communication is improved with the on screen messaging system. This allows the central location to send special directions out to a driver. Messages are helpful in avoiding traffic problems or road closings as well as sending information about the job itself or how to access the site.

“Our ability to communicate as a company using GPS has strengthened our sense of team while greatly improving our safety,” says Bruce Neale. “We have realized a dramatic 50% reduction in two-way radio communication in route. This, coupled with a policy that does not allow employees to use personal or business cell phones while driving has greatly increased our driver safety. This is very important to our company efficiency and structure but where it has also really improved our company is our ability to relate to the customer. We now can alert them as to when crews should arrive. Should they get lost, the system allows them to call back and receive help with directions safely by telling the system not to display text messaging until the vehicle stops.”

EFFICIENCY

Vehicles more than 13 tons that travel over state lines must report fuel consumption to each state. Reporting these records becomes much easier and more accurate with GPS. Records for off-road fuel use can also be pulled from GPS and used for refunds – another cost saving advantage to the GPS. For power take-off operated equipment, a firm is able to deduct the federal on road fuel tax that has been paid while operating truck mounted equipment.

Firms are also able to use GPS to increase efficiency in their time keeping. When a crew arrives at a site as well as when they leave can be detailed in the GPS. According to an America Online and Salary. com survey of over 10,000 workers conducted in 2005, employees on average lose 2.09 hours per 8-hour workday to a variety of things like getting lost, stopping for coffee, etc…. Therefore, a firm is able to verify the hours submitted by crews with the GPS as well as track split wage rates. For a firm that pays higher wages for onsite work than driving or maintenance, these hours can be tracked using the GPS.

EQUIPMENT MANAGEMENT

GPS can also be used to track hourly rental equipment such as concrete pumps or telebelts. Although firms must keep track of their hours for rental equipment, more important is preventing loss of that machinery as well as the company’s tools. Stolen construction equipment from jobsites is an increasing occurrence, one which costs as much as $1 billion annually in the United States. In addition, insurance market reports have shown an increase of up to 20 percent in the value of equipment thefts every year since 1996, according to the NER’s Web site, www.nerusa.com, making these thefts even more appealing. With GPS a firm is able to track the path of the stolen vehicle to help with the police investigation and locate the vehicle easier.

“Our facility was broken into one night and a truck and Bobcat were stolen. We were able to recover this equipment quickly by feeding the police information from the GPS. We employed two systems to make sure we were tracking the vehicle accurately,” says Neale. “We also know based on the reported incidents since implementing these systems that just having the units in the vehicle has been a deterrent to several would-be thieves.”

INSURANCE SAVINGS

Having a GPS allows a firm to negotiate better rates with insurance companies. The use of a GPS can help prevent theft, increase theft recovery and also help keep maintenance schedules for vehicles. With these precautions already taken with the purchase of a GPS, firms have been able to settle on lower rates with insurance companies.

As some firms in the concrete foundations industry have already learned, GPS can be used as a very efficient and cost/time saving management tool. With gas prices continually soaring due to rising oil prices as well as rising demand for it, firms are being forced to implement new tools and actions in order to save money in their everyday practices. GPS is an easy and effective tool that has already proved success to many firms in concrete foundations.

CONSCIENTIOUS EMPLOYEES

All of the time, material and resource savings that GPS can produce, however, are only as effective as the sense of commitment and quality that the employees can develop. By considering strategies to involve your employees in these solutions, firms have proven that many more intangible gains have come with the tangible ones. Modern Foundations knew that most of their crew took trucks home and they didn’t know when they stopped working at the job. GPS not only tracked this but allowed their workers to look at those habits over time, encouraging their crews to be more efficient.

“We had a crew that stopped to play soccer each day for an hour before checking back into the office,” says Neale. “By tracking their habits and then working with them to understand the impact of their decisions, we were able to affect change to this crew positively rather than through discipline.”

Whether it is reducing speeds by helping crews realize how often they drive in excess or by encouraging them to make the right choices in the routes they travel. GPS can be implemented effectively in the team environment to encourage them to be a part of the solution rather than forcing them to except the control measure. Have you looked into technologies to change your business? Contact a fellow CFA member and share your experiences, your concerns or your reservations. You may just find an opportunity that grows from that conversation that you had not previously thought possible.

CFA Company Certification Program Nears “Roll-Out”

The Concrete Foundations Association company certification program is in its final stages of review before anticipated “rollout” early in 2008. An overview and solicitation for input was presented at the summer meeting and committee members are planning to submit the program to the full Board of Directors for possible action at the fall meeting in Salt Lake City.

The program is being considered because several CFA members are operating in jurisdictions where foundation contractors are (or soon will be) required to be certified – not just the traditional trades. Many current company certification programs are designed, administered and enforced by companies and individuals who have limited knowledge about the industry they regulate. The CFA Board decided to be proactive and design a comprehensive but contractor-friendly program with that can be promoted by the CFA and used by jurisdictions requiring certification.

The CFA will introduce the basic elements of the program and expand or modify it as the market and members dictate. A separate board or committee will oversee the program to eliminate conflicts of interest and a board of appeals will be established to resolve conflicts, disputes, and other issues relating to possible denial of certification to a company. Administration of the program, including verification of requirements, will be handled by current CFA staff.

The program contains the following basic elements:

• Basic Knowledge of Concrete and Foundations

• Minimum Insurance Requirements

• Continuing Education (Annual Requirement)

• Safety Program Requirements

• Financial Soundness of the Business Entity

• Related Certifi cations or Verifi able Training for Specialty Equipment

• Experience

BASIC KNOWLEDGE

The Basic Knowledge component of the program would involve a one-time examination covering all aspects of construction that are deemed relevant to foundation construction. Specific categories of knowledge include:

• Safety

• Concrete

• Soils/Excavation

• Footings

• Walls

• Moisture/Waterproofing Drainage

• Backfilling/Grading

• Building Codes

The information needed to pass the examination will be in a variety of publications readily available through the CFA and other sources. They include the International Residential Code (IRC) Chapter 4, the American Concrete Institute (ACI) 332 Documents (Standard and Guide), and the CFA Standard. The CFA will offer a seminar at its regular meetings to prepare for the multiple choice exam. At this time it is anticipated to be an open book test.

INSURANCE REQUIREMENTS

All certified companies are be required to maintain and carry in-force minimum levels of insurance for General Liability and Employer’s Liability. While levels of coverage are still under discussion it is anticipated the minimum levels will be $1,000,000 for general liability and $100,000 for employer’s liability. Evidence of insurance of coverage for the above as well as for Workmen’s Compensation in accordance with respective state law is also required. Any changes in the insurance coverage must be provided to staff in order to maintain certification.

SAFETY REQUIREMENTS

Evidence of an industry approved safety program must also be provided for review and approval. The safety program must have at least the following components:

• A Safety Manual;

• Applicable MSDS Sheets;

• Safety Meetings with times, frequency, sign-off, and content;

• Accident Reporting Procedures;

• Confined Space Guidelines;

• Cement Burns.

CONTINUING EDUCATION

Twelve hours of annual continuing education will be required of at least two individuals in the company. Education must be divided into the following areas:

• Codes and Materials (4 hours)

• Materials and Methods (8 hours)

A variety of options will be available to meet the continuing education requirements. The CFA summer convention, specific seminars at the world of concrete, Foundation Fundamental seminars, CFA regional meetings and pre-approved locally sponsored seminars by builders groups and other industry segments will also apply towards this requirement. It is in the best interest of participants to have educational requirements spread over several individuals in the event someone leaves the company.

FINANCIAL SOUNDNESS

Companies must be able to demonstrate that they are financially sound through a series of questions relative to their business practices. The company must be solvent (assets exceed liabilities); State and Federal income taxes and payroll taxes must be current; Judgments and liens must be remedied; and the company must not be in bankruptcy. A negative answer to one of the above questions will not necessarily preclude approval for certification but it will evoke additional questions with regard to resolving any deficiencies.

RELATED TRAINING

Many CFA companies operate equipment that either requires special operator training or certification or for which special training is available. Examples include concrete pumps, boom trucks, and excavation equipment. If a company operates any special equipment, they must demonstrate to the reviewers that they have trained personnel operating the equipment.

EXPERIENCE

Owning a set of forms and having worked for a foundation contractor does not necessarily mean you are qualified to enter the foundation business. In order to be granted full certification, the business entity must have been in business for at least 3 years. New businesses who meet all other qualifications will be granted a Level I certification. Level II, or full certification, will require at least 3 years of experience in the cast-in-place foundation industry. The Board of Appeals will be able to hear special cases, such as a split-up of a partnership where both parties have the requisite experience. A third level of certification is anticipated in the future for contractors involved in constructing above grade homes with structural decks.

COST

The cost of the program has not been determined as of yet. There may be a special assessment for CFA Certified Contractor status, or it may be incorporated into a different level of basic membership. The amount of staff time involved in administering the program, legal costs, and other parameters are still being evaluated before the cost is set.

No one wants more regulation, hindrances, or requirements in order to operate their business but it is the responsibility of the CFA to anticipate the possibility of these needs and to put programs in place to address them. Once the program is ready, the CFA will be promoting it to builders, building code organizations, and other potential organizations or companies that are considering, or might consider in the future, a certification program. If you have any comments or suggestions about the requirements or details of the program, make certain you contact either Dan Bromley, committee chair (816-795-0073 or DanB@ABI-Corp.com) or Ed Sauter (319-895-6940 or esauter@cfawalls.org) to make your ideas known.

Ed Sauter, Executive Director, CFA

esauter@cfawalls.org

WHAT IS YOUR VISION FOR CFA?

When commenting on any CFA Summer Meeting, I feel that it is almost obligatory for me to tell everyone what a huge success it was and that anyone who could not attend really missed out on a great experience. However, in the case of this year’s meeting that was held in Stowe, Vermont, those comments are certainly true and then some.

The summertime setting in upstate Vermont was of course serene and peaceful as expected, but at the same time opportunities abounded for activities and excursions. Many CFA members found time to explore the quaint village of Stowe and also tour the famous Ben & Jerry’s Ice Cream factory. The CFA sponsored activities included barbeques, hot air balloon rides, canoeing, and of course great golf. The associate members once again came out in force and also contributed with an exciting product rodeo that really put the contractor members to the test. A welcome addition this year was a “kid’s camp” that gave many couples the opportunity to “escape” from their children for a few hours in order to take further advantage of the meeting opportunities. It is also probably worth mentioning that while most of the country was sweltering in 100 degree temperatures, those who were able to attend the summer meeting had to put up with mid 70’s – low 80’s; and as the sun went down many people were even seen reaching for a jacket!

The educational portion of the event was on par with the normal high standards and expectations. The topics this year were very diverse and seemed to be particularly timely with today’s current market conditions and challenges. The crown jewel of most summer meetings is of course the unparalleled networking opportunities. My observations were that this year many people took greater advantage of this opportunity than ever before. Perhaps the slumping housing market and concerns about the economy added to the high level of camaraderie and fellowship.

As we look to the calendar, the next important task is the Strategic Planning Session that is scheduled for late October in Salt Lake City. Some major goals for this meeting include an evaluation of the Association’s performance, reassessing member benefi ts, analyzing committee structures and effectiveness, and reviewing the vision of the CFA to make sure we are appropriately meeting the needs of today’s members. Input and involvement is welcomed from all members. This would be a great opportunity for you to share your thoughts and ideas in a way that will help to shape the direction of the Association for years to come.

Brad Schrock, CFA President, Custom Concrete Company Inc.

bschrock@customconcrete.com

Planning Our Future

Planning for the future is an important part of running a business. Successful companies, whether they have 10 employees or 10,000; whether they are trade associations or residential foundation companies; and regardless of economic conditions all have one thing in common: They convene periodically to assess their companies, the industry, and the future.

The world is changing, and that change is occurring at an ever increasing pace. An assessment that was completed 5 years ago is sorely out-of-date in today’s fast-paced world. While the computer and internet are primary motivators in the current pace of change, they aren’t the only factors that will impact how you do business – perhaps even your company’s survival. The CFA is not immune to that change and to make certain we have the best chance of survival the Board of Directors will convene on October 25th in Salt Lake City to hold a strategic planning meeting.

The session will be led by Wendy O’Brien of Constructive Communications. The process of planning is straight-forward but it is always helpful to have someone not involved in the day-to-day operations of running the business oversee the effort. The board (and other interested parties) will enter the session with and without preconceived ideas but will exit with an assessment of the current condition of the association and a plan of action for the next 3-5 years.

Planning begins with an honest assessment of your company’s strengths and weaknesses. It can be very difficult admitting that there are areas of your business that could be adversely impacting your operations, but identifying these shortcomings is critical to the process. You can’t improve or change a behavior or condition within your company until you acknowledge its existence. One of the goals of planning is to build on your strengths and improve or change areas in which you are weak. This can include facilities, personnel, management, communications, quality control – everything is on the table.

Another part of the process is to assess opportunities and threats, both from inside and outside the company. This can be one of the toughest assignments, in particular when it comes to speculating on threats from outside your company. Most companies don’t have the luxury of a marketing consultant so you must rely on your own observations for what is happening occurring. You might be able to identify opportunities for improvement inside your company, areas for new business, or industry needs that are currently not being met. Threats might be current, or they could be ones anticipated in the future. By midday there will be pads of paper taped on every surface with lots of thoughts and ideas. Focusing on the critical needs and developing a plan of action will occupy the balance of the day.

A good strategic plan balances needs and initiatives with available resources. Some ideas are “no brainers” while others must be evaluated carefully in terms of allocation of resources, both financial and personnel. Some of our assessments of the future will be incorrect and other might be “right-on.” The bottom-line is to gather information so that we can make decisions based on our best estimate of what the future holds rather than simply reacting to whatever the current demand is.

How do you run your company!!

Ed Sauter, Executive Director, CFA

esauter@cfawalls.org

Now Is The Time For Training!

The fall rush is almost upon you. You hope. Wow, residential construction is down. Down a lot. Earlier this year, the Portland Cement Association (PCA) predicted that residential construction would drop 20.5% in 2007 vs 2006. This is quite a dramatic loss of potential work and its associated profits. Everyone knows work would be down. I know you planned. But then what happened? PCA, in June, revised their numbers. The drop will not be 20.5%, but more like a 30% drop.

Ouch! How will you compete. Your customers, the builders, know that they must be more competitive than ever. Home builders who may utilize two or three foundation contractors may now only have enough work for one. Will your company be the one that is chosen to continue work in this down economy?

What will you do to differentiate yourself from your competition? There are may options. Most of you are shifting work more toward commercial construction. This makes sense and is a viable way to deal with lower volumes of residential work. However, we all, deep down, realize that commercial work will not fully compensate for the residential downturn. So how can you make sure your company is the one who continues to work for that builder who now only needs the one foundation contractor?

Let’s turn the table. How would you select the one contractor. The thought process is fairly simple. Let me give you an example, I was in need of a digital camera a few months ago and began to shop. I found the model I wanted. It was $175 at Best Buy and the same camera what $180 at Circuit City. So all things being the same, why would I pay more for the same product? The answer is easy. I didn’t; you wouldn’t. Similarly, let me ask you, if all things being equal, how will your customer determine which foundation contractor he will use. You got it. All things being same, it come down to the price of your services. May I venture to guess that you operate your businesses the same way?

So it seems to me that the name of the game is to separate yourself from your competition. Of course, you can do this by lowering your price. But the notion that this is a viable long term option, does not make sense. So separate yourself. If your company is clearly a better foundation contractor that all of your competition, then you will have the opportunity to survive this downturn. Training your people can afford you to separate yourself from the competition.

I presented an overview of the training I have developed at CFA’s summer meeting last month in Stowe, Vermont. The training, I believe, is suited for everyone on your team. From your general superintendent to the man placing your walls onto the folks in the office that order your ready mix concrete. The more knowledge your entire team has its disposal, the better service your people can provide your customers.

The training is broken down into seven modules that can each be presented in about an hour. I have found that an hour is a good time frame for working with folks who tend to get quickly antsy while sitting in a classroom environment. This type of information can quickly get too technical. This is not the case in this training. The concepts presented are purposely presented in a way that all skill levels can make a connection. Below is a brief summary of each module.

MODULE 1: CONCRETE BASICS

Should people who make their living working with concrete know a little bit about the material? I think so too. In this module, the difference between concrete and cement are discussed. The chemical process of hydration is discussed as well as the notion of water cement ratio. Each of the different concrete constituents are reviewed: cement, flaysh, slag cement, aggregates and water.

MODULE 2: ADMIXTURES

This module simply explains two areas of admixtures: the one that affects the physical properties of the cement paste(air entrainment) and the group that affects the chemistry between the cement and the water (water reducers & accelerators). Air entrainment is likened to protecting a can of pop in the freezer. Water reducers (normal, mid range and high range) and accelerators (calcium chloride, lower chloride and non chloride) are discussed. Other non traditional admixtures are also briefly mentioned.

MODULE 3: READY MIX CONCRETE

This module explains the difference between a dry batch and a wet batch plant. When the group understands that most plant only put the correct amount of each constituent in the truck, the members of the class quickly understand that have a quality, well maintained ready mix truck is critical4 to success. How ASTM C94 addresses job site water addition is discussed. In addition, ordering concrete is covered. As I have said for a long time, the quality of service your ready mix supplier gives you is proportional to the timeliness and quality of the information you give them.

MODULE 4: REINFORCEMENT & FORM OIL

The different types of stresses (compressive, tensile and flexural) seen in a concrete member are discussed. Discussion of how concrete is stronger in compression than is tension is covered. The notion that the reinforcement is placed to take over the tensile stresses come naturally to those in attendance. Bar marking, lap splices and grades of reinforcing steel are discussed. The difference between barrier and reactive form release agents is covered as well in this module. As one CFA member has told me: “Thin Wins” when it comes to form release agents.

MODULE 5: PLACING AND CONSOLIDATION

The different types of placing techniques are briefly covered. From a buggy to discharge directly from a ready mix truck onto pumping and/or conveying equipment – all of these methods are reviewed The idea of proper consolidation is also reviewed. Discussion of the radius of action of an internal vibrator is presented. In both the placing and consolidation discussions, the idea of removing air, either by vibration or by loss due to placing techniques, will result in a loss of concrete volume and thus a creating a yield issue.

MODULE 6: COMMERCIAL CONSTRUCTION.

This is a big one. With more and more of you entering this market, it is important to understand how expectations of your commercial customers differs from your residential customers. The role a superintendent and a project manager are discussed. The notion that inspections and concrete testing will be more thorough is presented as well. A brief review of the different ASTM methods for concrete testing is presented. Finally, the heighten safety awareness required of commercial construction is discussed.

MODULE 7: COMMON PROBLEMS AND RESPONSES

Everyone realizes that all job site have issues. Experience tells us that is how the issues are addressed is what separates a good project from a bad one. In this module, foundation issues such as crack, leaks and honeycombing are discussed. Not just why and how they occur, but what should your company representatives communicate to your customers on these issues. Similarly, flatwork issues such as scaling, cracking and aggregate propouts are thoroughly discussed.

In the past, having this type of training may have been a luxury. In today’s market perhaps having all of your people well versed in these areas may be a minimum requirement for survival in today’s tough environment.

Christopher R. Tull, PE

christull@sbcglobal.net/317-270-4428

 

Monarch Manufacturing, Inc. Hires Dan Summers as New VP of Sales and Marketing

Summers has over 30 years of experience in the retail, wholesale and manufacturing sectors

Trends in Information Technology

There is a common saying “Work smarter, not harder”. This saying was never more true than in the use of computers (or Information Technology) in your everyday business. The title of this article could be named “Trends in Information Technology Which You Can Use to Improve Your Business”. This article is not so much about technology, as it is about key ideas of how to best use information technology. I wanted to share some of my experiences using computer hardware and software – Information Technology – and how current trends can be used to improve your business’s bottom line.

I am not a construction business expert. On this topic I have only a working knowledge. Rather, my background is in Information Technology (IT). Even so I have something in common with the construction industry; I use computers and software to get my job done. I have to buy and manage a great deal of IT in order to serve my customers. Also, I face similar problems many of you have.

Before talking about technology trends, I want to start by summarizing the ways that information technology can be of strategic benefit in running your business. Most of this is common sense, but it will serve as a yardstick for judging the various trends. Information technology is not a goal, but a tool. And like any tool, its proper use can be a benefit, and its improper use can be a risk.

BENEFITS THAT IT CAN BRING TO BUSINESS

Controlling Costs

An important priority of contractors is to pay the correct amount to vendors for services and materials. In principle this seems simple, but in daily operations, it’s all too easy to pay a bill for services you didn’t receive. Computers are well suited for identifying and measuring costs associated with a project. They can record each hour worked and every truckload of material. This vendor record keeping will help you verify the validity and accuracy of each vendor invoice, ensuring that you are paying for only those goods and services that you received. In some cases you will need to verify back-charges levied against you. In these cases you might identify events that did not even happen, for example back-charges for damage to a silt fence at a site you were not present (on the day the damage occurred). Since all work efforts can be recorded and stored on a computer, those records can be a powerful tool in resolving those challenges.

Maximizing Revenues

Tight margins resulting from the current housing market have made accurate customer billing even more important. Getting paid for the work you perform is critical. However, with many simultaneous projects it would be easy to overlook portions of work performed. Easier still is to overlook the numerous changes that happen in the field, which if lost or forgotten mean that you are not being paid for all your work. And, you can’t rely on the customer to let you know they owe you money. Again, computers can make it easy to record and accurately report estimates and change orders. If actual values from the field don’t agree with estimates, the discrepancy can alert you to an unrecorded field change or extra work performed. Not collecting all the revenues you’re due can also occur from not pricing items correctly. In many cases you may be pricing items based upon incomplete information, overcharging for some items and literally giving away others. Computer systems can give you historical cost/revenue information helping you to be on target and consistent with your pricing.

Improving Efficiency of Operations

I was once told by an industry expert: “You’ve worked out the best deals you can with your vendors, and the price of your product is set by the market place. So where are you going to improve your profitability now? In your operational efficiency, that’s where!” Efficiency in operations can impact many areas. One area is the management of crew schedules to avoid conflicts and downtime. Every time you send a crew to a non-workable site (failed inspection, crew already on-site, site not ready…), you waste valuable and expensive work time. The same scenario is true for dispatching of materials (concrete and gravel) to work sites. In some cases, this mistake can be even more costly.

Since computers handle information at their core, letting them be the central point for operational information is a natural. This is where computers can really improve communications. It’s a mathematical certainty that the need for communication will increase exponentially with the growth of a business. As people are added to a business, the need for cross communication soon attains a level that is almost impossible to manage. And the cost of failed or incomplete communications is too expensive to bear. Information technology can help improve the speed and accuracy of communications in a business. Its speed and multi-user interfaces can be an information hub; letting people share information immediately with others who need that information. And since a computer can operate very quickly, that information is available real-time as soon as it’s entered. Computer systems also enforce consistency by implementing business process rules, for instance maintaining agreed upon pricing and discounting policies.

In summary, computers can help your business’s profitability, communications and consistency. It’s important to note again what computers are good at: handling large amounts of information and data; not for making judgments (that’s what human do best). You will get the greatest impact by focusing their impact on those aspects of your business. Consider the cost and value of your staff and what improvement information technology can bring to their performance.

INFORMATION TECHNOLOGY TRENDS

Software that helps you manage your entire operation

In business today there are many complex operations. In the poured wall foundation business, there is estimating, project tracking, dispatching of equipment and materials, scheduling of crews and tasks, and billing, just to name a few. Mixed in with this is the management of customers, vendors, and pricing information. Even from this limited list of issues you can see the complexity. So how can computers help? A relatively new type of software known as Enterprise Resource Planning or ERP can help you manage the many parts of your business as one cohesive unit. Many other businesses have already embraced this need and made profitable use of it. Consider the last time you went to the bank. When you asked for a withdrawal from your account, did the teller open up a spreadsheet and start making some entries? No, they used specialized banking software that helped them accurately and systematically perform your withdrawal request. By using ERP systems they are able to manage the critical aspects of their business operations, while at the same time improving customer service.

The same is true for poured wall foundation contractors. Your business is no less needy than the banking industry. Furthermore, software you use as your ERP platform should be focused on your specific business. There is a great deal of project management construction software available, but most are designed for large general contractors who manage a limited number of large and complex projects. These systems are often ill suited to take on the production management needs of a residential and commercial foundation contractor, which include managing a series of production processes on many simultaneous projects. This is an important distinction when considering software for your business. The correct ERP software platform will help you manage many parts of your business operation and gain efficiency throughout. Since it will serve as an information hub, everyone will gain use and benefit from it. The communication benefits can be profound. For example, estimators can record and communicate the needs of a job which crews will then take to a site. Crews will then communicate what was actually done on the site. The business office can then bill customers knowing the estimates, change orders, worksheets, and purchase orders that were related to this job, and make savvy, informed decision.

This is just one example of the way that ERP computer systems can help bring together many aspects of your business team into a cohesive business operation. There are many more examples of this kind of process that can be enabled and improved using computer ERP systems. These systems may seem expensive on the surface; however the benefits can be even greater. Consider the benefits of improving your staff ’s efficiency even a small percentage, and how much that extra productivity is worth. The benefit of a piece of equipment, like a truck, is easy to understand. Once the benefits of an ERP system are realized, the same value will be easy to understand, and just as critical to your daily business. Lastly, it should help bring together every aspect of your business: operational management, scheduling and accounting just to name a few. Since ERP software is relatively new to the poured wall foundation industry, these integrations will become more common. This approach will help you to manage your entire business and control your costs, maximizing revenues and improving efficiencies in your entire operation.

MOBILE COMPUTER ACCESS

It wasn’t long ago that computers first connected to the Internet. Communication speed and reliability weren’t very good, but that was fine because there wasn’t that much value to be seen. Things have changed. The advent of a more robust internet has created the ability to work from anywhere. This has been helped by the use of wireless air-cards. An air-card is a computer attachment which gives common laptop computers the ability to connect to the Internet from almost anywhere (and therefore to their work environment) through the wireless phone network. This new technology is affordable, fast and reliable. This technology offers a new ability – to communicate and use computers remotely on job sites or wherever the work is.

It is not difficult to see that the poured wall foundation industry’s work is widely dispersed, with locations often an hour or more from a central office. With wireless access you can access critical business information wherever you are. For example, a customer meets a project supervisor at the worksite and wants to make a simple change to a foundation – adding an extra 2 inches to the gravel depth of a garage slab. Failing to record that change or to bill incorrectly would have expensive consequences. Now you have the chance to make the change immediately upon instructions from the customer, and have that change communicated real-time to anyone who has involvement with the job.

Another example is the use of total-station surveying points for a foundation. If a scheduled job is not able to be surveyed for some reason – instead of coming all the way back for the next job’s information, it can be downloaded on the spot and the staking crew dispatched to the next job (which may be only minutes away from the crews current location). Compare that to bringing the staking crew all the way back to the office and then back out again to the worksite. Wireless is not free, but can be well worth the expense.

SIMPLICITY IS KEY

Your business is complex enough. Use information technology only where there is value and in the most cost effective, simple way.

A key simplifying technology is the use of an Application Service Provider. Application Service Provider (or ASP) hosting is a way to use a dedicated off-site computing center to run your application software. The hosting facility is already installed and running so that you won’t need to go to the trouble and expense of hosting the application yourself. In a nutshell, it leaves the effort and responsibility of managing a computer system to dedicated computer system professionals. Consider the last time you bought a substantial computer application (accounting package, time tracking…). You needed a server, with the correct system configuration. You had to be sure that it was secure and properly backed-up. Later you will be faced with upgrades. All of these efforts cost time and money, and can be largely eliminated with ASP hosting, which generally needs only a basic computer and an internet connection. ASP hosting is sometimes coined “On-Demand”, which simply means that the hardware, software application and database are already working and ready for your “demand”. This model of hosting software is becoming more prevalent, because it “lets the computer experts manage the computer”, leaving your key team members free to focus on managing your business. This technology has blossomed with the advent of reliable internet and wireless access.

Another technique to keep things simple is in subscription licensing. Much of the equipment used by poured wall contractors is purchased outright. Its life is limited, its value being depreciated over its useful life. Software has some important differences. Software has a limited lifespan, which if not upgraded and enhanced, will eventually devalue throughout its life. Even though software is often thought of as owned, almost no software is owned; even the Windows operating system is licensed. If you paid a large upfront purchase, say for Windows Vista, you have paid a one time licensing fee to use that version of Vista. However, if you were to do the same for more expensive, complex software, the outright one-time cost would be prohibitive and the terms surrounding the purchase could be very complex. Instead, consider the subscription approach. It is the equivalent of leasing a truck. Instead of a one-time, upfront purchase, you make smaller pay-as-you-go subscription payments. This way if the product or service does not suit you, you are free to walk away without the huge cost forfeiture. It also provides a way to keep your system up to date utilizing new functions and features as they become available. This process is simpler, less risky and puts some discipline back into the service-for-fee arrangement.

SERVICE IS KING

Everything in this world breaks. This reality applies to software. In the end, your success or failure with any IT product will be decided in large part by the service and support you receive. This service is in training, implementation and customer support. IT is a customer service industry; insist on it!

Furthermore, customer service is more that just a required product element, it can be an indicator of which company/product you should choose in the first place. When selecting software I am often faced with the decision to choose between the top product and the top company. Sometimes those two choices are not in conflict, however in cases where they are, I often choose the top company. If I plan to use a product for a long time, the top company will end up being the best choice in the end. The best product is often a temporary situation, in which the better company will eventually create the top product.

HARNESS THE POWER OF THE USER

Users have individual and specific needs. Today there are many high quality software tools available to meet those needs, such as spreadsheets, document generators, database applications and design tools. They have been around for a long time, and many people now use them to solve highly customized needs like estimating and customer billing. These tools have been used to handle very simple needs or loaded with features and business rules. But, with the benefits of these tools come risks. These tools, while simple and effective, often do not handle growth well. You might think that a spreadsheet which handles 10 business rules might be able to handle 20 or 30, but what will happen when it grows to 50 or 100. A mini-van which can transport 7 people would not adequately handle 100 people. This is true of software as well. There are other aspects of computer systems like multi-user sharing of data and interfacing with other information technology products to name a few. Like anything else, software products work well within certain parameters, but once exceeded they struggle.

GET THE MOST FROM YOUR IT DOLLARS

Your investment in IT is like any other. When you buy a piece of equipment, don’t you want that equipment to be used? The same is true of information technology. You need to maximize the benefits from your IT investment.

First, get as many people using a computer system that can effectively use it. This seems obvious, but with licensing, hardware and training costs, there is a tendency to reduce the users of any IT asset. In my experience as an IT provider, I prefer not to charge for the number of users, because it actually discourages its use and value. I want customers to gain the greatest benefit, and that means opening up the lines of communication to as many business users as possible.

Next, when information has been entered into a software product, use it for all it’s worth. If you have a drawing of a foundation, use the drawing for take-off information, staking information, concrete utilization, 3-D imaging, exporting into an estimation tool. In general, use each piece of information to its maximum benefit.

Finally, employ computers at doing what computers do best, manipulation of information in a consistent fashion. Don’t use computers to make judgments; use their strength in manipulating stored information to empower your business team. By sticking to this rule, you’ll improve your general use of any software product In conclusion, I want to reiterate that information technology is the tool that you can use to improve your business. If knowledge is power, then I hope you have some new found power to run your business. Technology can be an empowering tool. Used wisely it can improve your bottom line.

Walter Morgan is the Director of Product Development at Oak Ridge Solutions, a leader in the development of business software products for the poured wall foundation contractor. Oak Ridge Solutions product lines and services can be found at www.oakridgesolutions.com or reached at 877-408-2681

Code Corner — ICC Final Hearings

IRC ANCHOR BOLT PROVISIONS REJECTED

The CFA and its industry partners were successful on a major code change at the International Code Council hearings in Rochester, New York this past May. The change, #RB149, repealed the new provisions for closer anchor bolt spacing that were inserted into the 2006 IRC during (literally) a late night maneuver by proponents of the change. This change reinstates the provisions of Section R403.1.6 from the 2003 code regarding foundation anchorage. These provisions state that anchor bolts shall be spaced a maximum of six feet on center; that there shall be a minimum of two bolts per plate section and that one bolt shall be spaced not more than 12 inches from each end of the plate section. This coincides with the provisions of the ACI 332 Standard as well as the CFA Standard.

These provisions have served the industry well for several decades. Statistics regarding failure of walls due to problems with top plate anchorage were collected by the CFA from its members and presented in testimony at the ICC hearings. The statistics covered a five-year period and represented over 200,000 foundation walls installed by over 87 CFA members. There were a total of 41 problems related to top of wall restraint, but not a single one related to failure of the anchor bolt/plate connection under normal loading conditions. The 41 problems represent only 0.02 percent of foundations, hardly cause for concern. When you eliminate the causes that included driving excavation equipment or loaded drywall trucks within three feet of the foundation, or soaking the unbraced and unbackfilled wall with water, the percentage of problems or failures drops to zero. The proposed modifications that initially made it into the 2006 code would require anchor bolts spaced as close as seven inches or less depending on soil conditions adding hundreds of dollars to the average home. This is a classic case of creating a solution to a problem that does not exist.

There are occasional problems with the top of wall connection as described above but if there is a problem, it is more likely to occur from a failure of the deck-plate connection than the plate/anchor bolt connection.

UNDERSTANDING THE PROCESS

Removing a provision from the IRC is not a simple matter. Our proposed revision, which reverted back to the original 2003 wording, was recommended for disapproval by the ICC committee; meaning that it would remain in the code unless our proposed change was accepted. In order to overturn the committee recommendation, a super majority is required. Ed Sauter of the CFA, Steve Skalko of the PCA, and Gary Ehrlich of the NAHB, together with several building code officials spoke against the committee recommendation, and one individual spoke in favor. Each individual has a maximum of two minutes to make their points – either in favor or against. All speakers have another one minute opportunity to refute the first argument. Voting on final action at this meeting is done only by the building officials. The vote was 57 in favor and 77 opposed to the committee recommendation – the first round was won. The next step was a motion from the floor to accept the proposed change. The vote on this motion was 107 in favor and 38 opposed – the change was officially approved.

You might wonder why so little time is allotted to state your case. First, most if not all of the arguments are submitted in writing ahead of time along with the proposed change, so in theory everyone has had the opportunity to review the arguments. Couple that with the fact that there are usually several hundred proposed changes, and some of them, such as the proposal for mandatory sprinklers in all homes, had at least 50 people lined up to offer their opinions, and you can see why time must be limited. The arguments on this sprinkler change (which was defeated) took nearly two hours. You get the point.

CLOSING NOTES

The CFA was unsuccessful in its opposition to allow compacted gravel footings under precast foundations. Sauter was the only one speaking against the proposal and the committee action was for approval.

The CFA will continue to expand its participation in code activities as a service to members. If you have issues with the IRC make sure you get in touch with us. The deadline for submittal of proposed changes to the 2009 IRC is August 20th of this year.

CERTAINTEED CORPORATION NOW OFFERING V-Buck® Vinyl Blocking System

To offer our foundations customers an increasingly broader range of products, CertainTeed Corporation now offers the VBuck(R) vinyl blocking system, a product manufactured by Vinyl Technologies Inc., (VTI) that helps building professionals simplify the process of creating window cut-outs in poured concrete basement walls.

The V-Buck vinyl blocking system consists of vinyl window blockouts that create window space when foundation walls are poured in both insulated concrete form (ICF) and conventional poured concrete wall construction. Perfect for installing any windows, VBuck is easy to assemble, installs quickly, helps job sites look cleaner and is available at an installed price equal to wood. V-Buck vinyl is also resistant to corrosion, enabling it to look great many years down the road.

“We are pleased to be working with VTI in a capacity that is sure to benefit both of our companies,” says Steve Gross, Marketing Director, CertainTeed Pipe & Plastics. “The V-Buck vinyl blocking system is an innovative product that goes hand-in-hand with our Form-ADrain(R) Foundation Drainage System and ThermaEZE(TM) Foundation Insulation System. We look forward to giving building professionals the opportunity to meet many of their foundation construction needs all in one spot.”

This venture provides VTI with additional representation for its products, while reinforcing CertainTeed’s commitment to providing a broader foundations product selection for builders. V-Buck complements the existing CertainTeed(R) foundations product line which consists of Form-A-Drain, which is used to form concrete footings, drain foundations, and vent radon, and the ThermaEZE Foundation Insulation System.