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CONSTRUCTION KNOWLEDGE BLOG

May 31, 2011

Time for 9 Minutes of Smiles?
Filed under: Ned Weirdness — Tags: — nedpelger

Do you have time to smile and feel just plain good for 9 minutes? Then watch this video where the city of Grand Rapids, MI works together to lip sync American Pie. I love the song, but the creativity of the film maker and the cooperation of the participants really touched me.

We live in an amazing world. The capacity for great joy…and great sorrow, are bookends to this crazy human experience. Then, best and worst of all, we get to choose, every single day, every single second, in fact, how we want to live. Choose well, my friends.

CONSTRUCTION KNOWLEDGE BLOG

May 28, 2011

7 Deadly Sins of 2nd Gen Construction Businesses
Filed under: People Skills — Tags: — nedpelger

My friend Rick recently had conversations with some old friends at a local construction firm. In each separate conversation, the story of what is happening within the company is eerily the same. They feel as if the work they are performing is meaningless and that the future of their current employment is almost hopeless in terms of advancement and stability. Much of the conversation leads back to a real lack of leadership and involvement in the business by the current management.

A few years ago this company went through a transition. The business is a family owned business and the management and control has been handed to the second generation to manage the day to day operations of the company.

Because of the similar, separate stories that Rick heard he researched the success and failure rates of family owned businesses. He was surprised by the number of articles that a simple search of Google can bring. One article in particular caught his attention. The article was titled The Top 7 Mistakes Why Second Generation Small Business Owners Fail at Business Success written by Leanne Hoagland-Smith from Ezine Articles. Turns out that 2 out of every 3 family owned businesses fail in the 2nd and 3rd generations. The following is a list of those mistakes taken from the web page article.

  1. Ivory Tower Mentality – Knowledge Failure
  2. Successful first generation business owners had the ability to send the next generation to college to learn improved business skills. Unfortunately, many of these professors in business schools never worked in the real world, but rather pontificated what they believe should be instead of what is is.

  3. External Customers Relationships transfer – People Failure
  4. First generation business owners knew that their businesses needed loyal customers and took the time to develop these relationships. Second generation business owners believe that the relationships their fathers or mothers had would automatically transfer to them.

  5. Source of Employee Loyalty – People Failure
  6. The loyalty of many employees within family businesses began with the first management team and not necessarily with the company. When the second generation came in, they believe that the employees loyalty was to the company.

  7. No Plan – Knowledge and People Failure
  8. The success of many small businesses came from the entrepreneurial spirit and not necessarily from having a plan. With no plan to hand over, the next generation continues to conduct business without a solid written business plan. In today’s market place any business that does not have both a strategic plan for establishing a new vision and a strategic action plan will have great difficulty in surviving less along thriving.

  9. Performance Savvy – People Failure
  10. Since businesses are comprised of people, managing people takes an understanding of what motivates people to do their very best. For example, when the current management team cries poverty and can’t afford raises for the employees, but then purchases brand new expensive cars, their actions have a negative impact on the employees. Employees don’t mind new cars, but do mind luxury cars.

  11. Assumptions – Knowledge and People Failure
  12. Today’s second and third generation business owners carry numerous assumptions that were true for their parents or grandparents, but not necessarily true today. Assumptions include:

  • Market place
  • What motivates employees
  • How much time the business demands
  • Owner entitlements

7. Values – People Failure

Many first generation business owners operated by core values where a man was as good as his or her word. Handshakes instead of formal contracts had much greater value. Today’s business owners appear not to have the same deep seated values of their ancestors. The result of the lack of values can be summed up in one word – greed.

Rick concludes with the following:

Upon reading this article I was able to see almost all of these same mistakes being made within the company that was being described to me. After sharing this article with a few of these friends, they concurred that this article was scary true to the situation they were experiencing.

It is a real travesty for a once successful and strong company to now be sliding backwards. Many of those who had been around since the beginning and helped build the success now sit on the side line unable to change the downward direction. For many people, the careers and employment they pursue are more than the paychecks that they receive.

I think this is a great article that every 2nd and 3rd generation business owner needs to read. Probably wouldn’t hurt for the 1st generation either. I think everyone in construction can take something away from this article.

Thanks to Rick for a thought-provoking post.

CONSTRUCTION KNOWLEDGE BLOG

May 26, 2011

Building Factories in America Makes Sense Again
Filed under: Industry outlook — Tags: — nedpelger

A customer recently told me they want to proceed with a 50,000 sf factory addition. They considered trying to outsource the manufacturing to China, even took a few trips over there. They concluded, however, that they benefited from the close feedback loop of tweaking the design and making changes during manufacturing (the same thing they do during building construction). They keep changing things on the fly, but end up with a great product.

Turns out The Economist article Moving Back to America indicates that the decision  to build here makes sense on a few other levels as well. The labor costs in China have risen 65% from 2005 to 2010. America’s labor costs…not so much.

“Sometime around 2015, manufacturers will be indifferent between locating in America or China for production for consumption in America,” says Hal Sirkin of Boston Consulting Group. Since factories take time to plan and build, many manufacturers have re-directed their efforts to America. Caterpillar starts a plant in Texas soon. Wham-O, the manufacturer of Frisbees and Hula Hoops moved half its production from China and Mexico back to America.

Of course, for goods to be sold in Asia, plants there will continue to make the most sense. As the world settles into globalization, companies learn that simply lowering labor costs doesn’t balance more complex supply chains and higher inventories due to long distance relationships.

So more good news for the American construction industry. If you’re struggling in this crazy construction market right now, hang in there. Remember the words of wisdom from the old contractor, “When it’s good, it’s never quite as good as it seems it is and when it’s bad, it’s never quite as bad as it seems it is.”

CONSTRUCTION KNOWLEDGE BLOG

May 24, 2011

Snakes Canoodling: Further Adventures of a Carpenter Gone Primitive
Filed under: Construction Superintendents — Tags: — nedpelger

Randy’s been watching snakes lately. He called us over for a gander. The photo below shows six water snakes lounging on a section of fence at our meadow. Randy explained that the big female (top right) is already bred, because the males crawl right over her and don’t stop to canoodle. Randy watched them mate a while ago. The female in the fence post on the left, though, seems to be the primary source of interest for the scrawny males.  Randy knows them all.

You may recall that Randy closed his one man construction business over a year ago, partly due to the economy and partly because he wanted a change. He’s morphed his amazing carpentry skills into animal husbandry and natural man. His stress level plummeted, though the wet winter and spring have upset his plans, which causes a different kind of stress.

So he’s out of the rat race, but still watching snakes. I guess that makes sense on some level. He lives a simple life with few needs. It wouldn’t be for everyone, but seems to suit him. It’s good to know there are options.

CONSTRUCTION KNOWLEDGE BLOG

May 23, 2011

When Lives are Cheap, Rotten Worker Safety Follows
Filed under: safety — Tags: — nedpelger

The photo below amazes me, even for India.  They are constructing a shopping mall in Bhubaneswar, India.

It took me a bit of looking to see what was happening. They are building the scaffolding and have step-ups perpendicular to the building to hand up scaffold poles. The workers stand on a small piece of wire mesh (perhaps 12″ x 36″) that straddles two horizontal poles connected on either side to upright poles.

The structure has no stability to resist any type of sudden wind or storm. In fact, I’d imagine the workers could probably bring it down by all moving in the same direction at the same time.

We all complain sometimes about OSHA  and the American judicial system for going too far. This photo makes me glad that we have a system that keeps us focused on not acting stupid. I imagine there is a contractor in India saying, “But I have to do it this way. If I don’t, my competitor will and then they will have the job.”

Take a moment to be thankful if you live in a place that forces reasonable worker safety provisions. If you’re in one of these unregulated environments, think about the moral line you want to keep, then try to stick to it. Actually, we all need to do that. And no, it’s not supposed to be easy.

CONSTRUCTION KNOWLEDGE BLOG

May 20, 2011

Quick Laugh for a Friday
Filed under: Ned Weirdness — Tags: — nedpelger

Here’s a quick bit of construction humor to start your weekend.

httpv://www.youtube.com/watch?v=_0f_8czgB3c

Also, here’s a post from the Construction Knowledge Forum that I thought you’d enjoy:

I was on a construction job recently and we were installing petroflex, it was coiled on a reel cart. I watched as one of the guys thought he could reel it out by himself. I tried to warn him. I told him that he might be able to turn it 2 or 3 times but on the 4th or 5th time, he really would need more than his own strength to unreel it.

You know how construction workers are, a bit on the egotistical side and thought he could handle it…even laughing at me, telling me “Maybe YOU would need help!”

I watched as he unreeled…1..2…3 times on the 4th time, it snatched him off the ground and he spun around the reel 2 or 3 times. All I could hear was..”WOoaaaah” as he spun each time. After completeing his 3rd spin, the reel threw him to the ground. He hollered, “I’m hurt and man, you were right!”

Have a good one.

CONSTRUCTION KNOWLEDGE BLOG

May 18, 2011

Top 10 Reasons to Switch from Outlook to Gmail
Filed under: Productivity — Tags: — nedpelger

I’ve loved Google for years (wasn’t smart enough to invest early, though) and now we’ve moved to the next level of our relationship. I’ve dropped Outlook and switched completely to Gmail for my email, contacts and calendar. I ran them in parallel for months and Gmail performs so much better. Top Ten reaasons?

10. Time Savings. Gmail searches past emails and contacts with amazing speed. Outlook got slower every year, as my number of contacts grew over 3,000 and emails into the tens of thousands. What Outlook did in minutes, Gmail does in seconds. Due to the searching speed, I no longer bother to put old emails into folders (which I did to make them easier to find). Now I archive everything and just search for what I need. By using filters for incoming emails, I further improve my time savings.

9. Cloud based. By all the data stored in Google’s many servers, I have access from any computer, anywhere. I also have much better security (I’m not worried about Google employee’s reading about my life…sometimes I don’t even want to) and loss prevention. Google is virtually never down, due to their redundancy.

8. Reliability and Repairs. I’ve had a few frustrating episodes with Outlook, when I couldn’t get it to work and spent many hours or days trying to repair it. Microsoft support was horrible (that’s when I went from being a fan to a critic) and I recall the level of aggravation well. Gmail provides less options (which I didn’t want anyway) and more reliability.

7. Google Calendar Shares Well. Sharing scheduling info on projects can be tricky. Since everyone can access a Google Calendar, project schedules can be seen and updated easily.

6. Superior Spam Filtering. No one filters spam better than Gmail. As I’ve appreciated this benefit, I’ve also begun to hit the unsubscribe language more often, getting rid of those regular emails that I at one time thought I’d read but never do. More time management savings.

5. Google Plays Well with Others, Microsoft, Not so Much. When I was parallel running Outlook and Gmail, I struggled to sync the programs. Microsoft has a strong vested interest in not cooperating with Google…and doesn’t. So it’s easy to move all the info one time, but not possible to create a real syncing option. As I see it, Google is open and Microsoft closed and open wins in today’s world.

4. Threads Keep Related Conversations Linked. By automatically linking all emails for a topic, Google saves the time of searching and trying to remember what came before. It’s a benefit this old brain appreciates.

3. All Info Shared and Current. Syncing Gmail with an Android or iPhone works seamlessly. Even better, contact groups get updated when contact info changes (Outlook didn’t have this feature to my continued annoyance). The way contacts and groups are handled in Gmail just makes much more sense. I imagine someone at Google used Outlook and thought, “Wouldn’t it be much better to do it this way?”

2. Gmail Groups Work for the Way I Work. I tried for years to mesh my Microsoft Access Database where I kept all my vendor and bidder data and my Outlook. I never could make that work. So I devised ways to use both, but never liked that the data needed to be changed in two places. Now I keep all my vendor data in Gmail groups, as well as meeting minute groups, and other job related groups. I can export those groups easily (which was not possible in Outlook).

1. IT’S FREE! Anyone that knows me knows that I’m cheap. I enjoy saving money for my customers…and for myself. Gmail gives a huge amount of storage for free, and it’s only a nominal cost for much more. I haven’t totally transitioned to Google Docs yet (which will replace Microsoft Office Suite) but I’m heading in that direction. I like options and I like free.

So consider making the switch. I’m glad I did and wonder what took me so long.

CONSTRUCTION KNOWLEDGE BLOG

May 16, 2011

A New “Starchitect” Who Actually Loves Construction
Filed under: Cool Projects — Tags: — nedpelger

Nadine Post wrote another wonderful article in ENR this week about Jeanne Gang, an architect doing some of the best work I’ve seen. The article begins this way:

Unlike many architects, Jeanne Gang, designer of Chicago’s mesmerizing Aqua Tower, respects builders and lives for construction.

Gang combines a wonderful imagination with a love of construction methods/details. Her civil engineer father drove the family to see fascinating bridges on many vacations (my kids relate). As she designed and built the 87 story Aqua Tower,  she worked closely with the foreman to get the undulating concrete details right. The photos show the success:

A mechanical engineers notes that Gang calls him into the project in the earliest stages, the only architect he knows that does that. I’ve told owners for years that one of the keys to cost effective and sustainable building design is to have the structural engineer and the HVAC engineer involved from the very early concept design.

Many folks in the article imply the lack of ego in Gang projects. She seems to strive to listen, think and move toward the best solution for the project, not just for her reputation. That’s the kind of architect I’d love to see move into this “Starchetect” role. Our industry needs more architects living those attributes.

Here’s another great photo showing creative material use and workmanship, with some beautiful design.

If you have a few minutes, I encourage you to read the ENR article. You’ll be glad you did.

CONSTRUCTION KNOWLEDGE BLOG

May 13, 2011

Friggatriskaidekaphobia
Filed under: Ned Weirdness — Tags: — nedpelger

It’s Friday the 13th and we have a special Second Fridays event (Loving Lititz Every Second) in our little town.  I wondered about the probability of a second Friday falling on Friday the 13th. Thought I might have a contest and offer a cash prize to the first person who could figure those odds.

Turns out I couldn’t figure those odds. I started by thinking that any randomly selected month would have the probability of a Friday the 13th as  1/7 odds from the seven days of the week). But leap year complicates that, making a 28 year cycle until the calendar repeats. Then I learned that the Georgian calendar, which we use, only repeats every 400 years. What’s up with that?

Turns out that 365.25 days per year doesn’t quite work. It’s actually a 400 year cycle with year 100, 200 and 300 not being leap years, unlike year 400. So year 2000 had a leap year, but 1900 and 2100 don’t.

So figuring the odds goes from a simple probability problem that I was anticipating to creating a table and inputting dates. Then the odds get determined by counting the numbers.  I think folks in construction should have a basic knowledge of simple probability and odds, it just helps you make better decisions.

Thinking of rational decisions, what’s your opinion of Friday the 13th? Wikipedia had some interesting info:

The fear of Friday the 13th is called friggatriskaidekaphobia (Frigga being the name of the Norse goddess for whom “Friday” is named and triskaidekaphobia meaning fear of the number thirteen), or paraskevidekatriaphobia[1][2] a concatenation of the Greek words Paraskeví (Παρασκευή, meaning “Friday”), and dekatreís (δεκατρείς, meaning “thirteen”) attached tophobía (φοβία, from phóbos, φόβος, meaning “fear”).

As in, “Take it easy on me today, baby, I’ve got Friggatriskaidekaphobia.”

CONSTRUCTION KNOWLEDGE BLOG

May 6, 2011

Construction Cheaters Going to Jail…Where They Belong
Filed under: Construction — Tags: — nedpelger

Lehr Construction Corp renovated office buildings in NYC and ran a scheme that reportedly cheated $30M from their customers. Working for marquis clients like Fidelity Investments and The Economist magazine, Lehr ran an over-invoicing scam.

Lehr utilized both an open book,  Construction Management side of the company that worked on a percentage mark-up on costs along with a General Contracting side that worked at lump sum bids. The management colluded with selected sub-contractors to inflate their invoices on the CM projects, then to low ball the GC projects. Therefore Lehr over-billed their CM customers (and increased their CM fees) while being able to obtain much more GC work at better margins.

I’m not sure the old adage that cheaters never win is always true, but it’s mostly true. These stinking cheaters got caught (and went bankrupt as well) and are going on trial. The charge of enterprise corruption carries a jail term of 25 years. The VPs of finance, operations and estimating are all on the hot seat.

How do guys like these not expect to be caught? Is the arrogance that high? Or just the stupidity? These are crimes with lots of other parties involved. People, for the most part, don’t keep secrets well.

“Sadly, greed and corruption impose a hidden, billion-dollar-a-year tax on New York City’s construction industry,” said New York District Attorney Cyrus R. Vance Jr., whose office is investigating the industry.

These cheaters didn’t win. Even the other guys who haven’t gotten caught have to go through life knowing they are scum balls. I encourage you not to just take the high road, but take the highest road. Behave in such a way that even the appearance of impropriety is absent. Set your personal standards so high that everyone who works with you or knows you has a clear sense of your high integrity. Live like somebody is always watching…because it’s true.

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