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CONSTRUCTION KNOWLEDGE BLOG

November 4, 2011

Pick on Someone Your Own Sise
Filed under: People Skills — Tags: — nedpelger

I was running a job meeting yesterday for a project that’s had all sorts of challenges, yet the progress on site amazed me. The Superintendent has gotten all the trades working together in ways that exceed my project schedule and my expectations. It’s great to see guys shifting around on the jobsite work flow to be efficient and keep things moving. The job meeting was a pleasure as we all laughed about several items and addressed some concerns.

I started thinking about the value of humor on the job site. A good laugh lubricates social interactions, making everything run more smoothly. So inject some humor into your work today. Understand that humor has risks and try not to cross the line. But if the choice is do nothing or get a bit closer to the line than you’re comfortable with, nudge yourself toward that line.

The Economist had a tongue in cheek piece a few years ago addressing the “Problem” of children. They made the economic argument that smoking, driving and mobile phones all cause “Negative Externalities”…a situation where  those around the smoker, driver or loud phone talker were negatively impacted (annoyed) by the experience. The article went on to say:

Governments typically respond to such market failures in two ways. One is higher taxes, to make polluters pay the full cost of their anti-social behaviour. The other is regulation, such as emission standards or bans on smoking in public places. Both approaches might work for children.

For children, just like cigarettes or mobile phones, clearly impose a negative externality on people who are near them. Anybody who has suffered a 12-hour flight with a bawling baby in the row immediately ahead or a bored youngster viciously kicking their seat from behind, will grasp this as quickly as they would love to grasp the youngster’s neck. Here is a clear case of market failure: parents do not bear the full costs (indeed young babies travel free), so they are too ready to take their noisy brats with them. Where is the invisible hand when it is needed to administer a good smack?

The article went on to propose “Child-free zones” in airports, trains, bus stations, etc and advocated for a tax on children. Two weeks later, in the letters to the editor section, Jessica Morley age 6 responded:

Sir, you are wrong when you say that children are like cigarettes or mobile telephones. No one has to smoke or use a mobile phone, but everyone has to be a child and you were once one too. You need children to pay for the pensions of miserable old people like you.

Now pick on someone your own sise.

Yours,

Jessica Morley (aged 6)

CONSTRUCTION KNOWLEDGE BLOG

November 2, 2011

Gov’t in Construction: A Confederacy of Dunces
Filed under: Industry outlook — Tags: — nedpelger

Beacon Power Corp, which previously received a $43M US Dept of Energy loan guarantee, just filed for bankruptcy protection. Beacon developed a 20 MegaWatt flywheel storage facility in upstate New York to help manage electrical grid power fluctuations. LeChase Construction, Rochester NY, built the New York plant and hasn’t received final payment, making them the largest creditor. The photo below gives a sense of the facility.

Beacon Power had also received a $24M Smart Grid stimulus grant to build another 20 MegaWatt flywheel storage facility in Hazle Twp, PA. Since Beacon was still searching for financing for that facility, I assume it won’t be proceeding.

The US Government’s recent record on project funding has had some spectacular flame-outs. The most famous being Solyndra, which received a $535-million Dept. of Energy loan guarantee to make solar panels and filed for bankruptcy in September. As an added kicker to that story, the news today noted that the Solyndra former CEO was given about a half million dollar severance package.

Now I understand that many venture capital firms select losing projects, that the skill in picking a winner is far from a science. For that reason, though, the government shouldn’t be in the VC business. When the government tries to direct businesses with grants and loan guarantees, markets distortions occur. Solar panels all over Germany, which has so little sunshine, tend to be the result. Similarly, corn ethanol in the US, which raises food prices (putting many into poverty) and does nothing to improve the fuel balance.

On a more local note, I spoke last week to a buddy working as a bridge carpenter. He is helping construct a new bridge that boggles his mind in terms of complexity and uselessness. He sees the government simply spending cash for the sake of creating jobs. What a shame when so many bridges and other infrastructure projects really need to be completed.

I propose a merit based government funding process. To begin, the government stays out of VC type funding. A market already exists to fund entrepreneurs and the government can only pollute that process. The infrastructure funding, though, needs to be done by the government, but could be done in a non-political way.

The politicians would decide the amount to go into the pot for annual spending. An independent technical committee would evaluate projects in some double blind way and select those that deliver the most value. Then the politicians could vote only yes or no on the funding package.  Merit project funding could be one of the changes that helps America get back on the right track.

CONSTRUCTION KNOWLEDGE BLOG

October 31, 2011

Crossing the River on Trash
Filed under: Cool Projects — Tags: — nedpelger

When I was in Haiti, some waterways would be so filled with trash that you could walk over the water.

A much less disgusting method to use trash to help cross the river was shown in 50 Tons of Plastic Recycled into a Footbridge. Students at Rutgers and Cardiff Universities worked together to design and build a 90′ bridge made from used water bottles and other plastic trash. The plastic beams don’t need painted and should have a long life span. The photo below shows the attractive bridge that spans the Tweed River in Wales.

A Welsh startup called Vertech plans to use the process to make more structural elements from trash, reducing landfill space and making a profit. It’s another construction related business opportunity.

CONSTRUCTION KNOWLEDGE BLOG

October 28, 2011

Lime Green Hatchback and the Process of Life
Filed under: People Skills — Tags: — nedpelger

My buddy Jim Stuckey, P.E. shared this week’s Friday Fun video. Jim’s watched it dozens of times and laughs every time. It sure cracks me up.  It’s a thing of beauty.

httpv://www.youtube.com/watch?v=AEQw0ztvgZY

I got to know Jim when he left a VP job at a successful consulting engineer firm to become the Executive Director of Facilities and Technology at one of the fastest growing churches in the country. He took on a whole new set of work challenges because he believed it best invested his life.

That idea connected with me as I thought about my supper last night with my friend who just got out of a 15 year prison stay for selling drugs. My friend lived an intense life, both on the streets and in state prison where he reined as power lifting champion for years. As we talked about the struggles of transition, I thought about the process of continuity.

We tend to get more challenges, more work, more fun problems to solve as we successfully complete the ones in front of us. For example, if you can’t manage your personal time or money, don’t think you’ll do better in your own business. Get what seem to be the little struggles done right and you’ll have the opportunity to fight bigger battles.

If you think that you don’t want bigger problems to solve, that you dream of a life free of struggle or aggravation, don’t go into your own business. The rewards of running your own firm or being part of a growing firm are many, but carefreeness isn’t one of them.

Just like the Lime Green Guy in the commercial, we all get to select our own vision of beauty, of how to spend the currency of our life. I hope you don’t fall for the false bargain that implies ease brings happiness. Here’s to struggling, struggling well and struggling at the right things.

CONSTRUCTION KNOWLEDGE BLOG

October 26, 2011

How to Start a Construction Company with Limited Cash
Filed under: Energy — Tags: — nedpelger

As I’ve been writing lately, now’s the time to be planning your new construction venture. When the economy looks too good to be true and news articles are about everyone making money easily, it’s time to start looking for the fire exits. That time was a few years ago. Now, on the other hand, when every news story predicts gloom, opportunities are on the horizon.

I believe this winter will have more US contractors go out of business than I’ve ever seen in my life. As those firms die (often from overzealous new banking regulations), times will be tumultuous. Yet the time to plan for your new, efficient firm that does some thing better than anyone else is right now. If you’re already in that business, keep struggling through and building your niche.

Here’s a helpful video answering the question, “How can I start a construction company with no money?”

httpv://www.youtube.com/watch?v=lrp3o4NFjhI

The first question in any business venture needs to be, “Who will be my customers? Who will pay me to do something for them?” You need some time to work through the understanding of the things at which you excel and how that can be packaged into something that will provide great value to your customers.

Think creatively, not just about how firms worked in the past, but about how they may work better in the future. Spend time on the concept now. It takes effort to drive the dream.

CONSTRUCTION KNOWLEDGE BLOG

October 25, 2011

No Tangle Extension Chord Storage
Filed under: Electrical — Tags: — nedpelger

Here’s a handy trick of the trade that allows long extension chords (or other types of long lines like rope or tubing) to be stored in a way that prevents tangles and allows one handed playing out of the stored line.

httpv://www.youtube.com/watch?v=eaEv9wm6gy0

Lex shot me this tip from BoingBoing and the comments noted that this was just a standard crochet knot. That quickly turned into a discussion on guys crocheting (like Rosie Grier) and this comment followed, which cracked me up.

I knit on the trolley down where I live. Maybe I do get shunned by the guys… but ladies love it and it’s a guaranteed conversation starter.
What’s more manly: looking ‘cool’ in the front of the guys, or constantly getting chatted up by beautiful women? 😉

So keep learning new things and don’t be too concerned with looking ridiculous, you may even get chatted up.

CONSTRUCTION KNOWLEDGE BLOG

October 21, 2011

No Plumbers Like That on My Jobs
Filed under: Plumbing — Tags: — nedpelger

Here’s a 30 second smile, just what you need on a Friday.

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

And some more Kohler fun that may be more appreciated by all my female readers.

httpv://www.youtube.com/watch?v=xV_a3a4T4_M&feature=related

CONSTRUCTION KNOWLEDGE BLOG

October 20, 2011

Building 15 Story Hotel in 6 Days
Filed under: Cool Projects — Tags: — nedpelger

I’ve seen some time lapse photography videos over the years that impress and amaze. The group that gets together and completes a house in a weekend is fun to watch. The video below, though, of a hotel being built in Changsha, China shows a 6 day period that astounds.

httpv://www.youtube.com/watch?v=Ps0DSihggio&noredirect=1

Notice the use of offsite built panels to speed the construction. Some of the other Chinese construction details for structural steel fascinated me as well. The Project Manager triumphed in this project, which was completed last year. Remember this video the next time you’re about to say some construction milestone is impossible.

CONSTRUCTION KNOWLEDGE BLOG

October 19, 2011

Who Shouldn’t Start a Construction Business?
Filed under: Construction — Tags: — nedpelger

If you know you could perform your job much better, but aren’t going to for your (pick one) jackass boss, low wages or company that promotes idiots, then you shouldn’t start a construction company. Customers are harder than all the above annoyances. The folks that excelled for their previous bosses tend to do well in their own firm. The complainers, malcontents and brilliant guys that won’t waste their efforts without appropriate rewards go bankrupt.

If you can’t manage your personal finances and are always on the verge of fiscal ruin, then you shouldn’t start a construction company. The same self control that allows folks to make their ends meet in tough situations cause prosperity in business.

If you are a liar, a chisler or a theif, you shouldn’t start a construction business. In a small business, reputation rules. The poor character and bad moral choices you made in your previous jobs probably won’t change when you run your own business. What will change, though, is that others can much more easily avoid you. Word spreads quickly about bad behavior and no one has to use your firm. In short, good character pays.

So, it’s a great time to start thinking about your own construction business, but not for the knuckleheads described above.

CONSTRUCTION KNOWLEDGE BLOG

October 17, 2011

What Skills Do I Need to Start a Construction Company?
Filed under: Construction — Tags: — nedpelger

The Construction business consists of three main items:

  1. Get Work
  2. Do Work
  3. Keep Score

Let’s start with the middle one. You need to have experience producing great results. If you achieve mid-level results for your current boss, don’t bother going into business for yourself. To succeed, you need to be that guy that already succeeds in your current job.

That doesn’t mean you need to be a master craftsman or have the highest technical skills on the jobsite. You must be competent in your trade and your crew needs to exceed expectations in production, quality, safety and schedule. If you can’t manage a crew to successful outcomes, don’t go into your own business. Put another way, you must be a leader. That means you take charge and others follow.

Most guys contemplating a construction start-up feel confident in their ability to do work. If that’s true for you, then consider your ability to get work. Don’t be afraid to say the S word here. You need to do Sales. That doesn’t mean telemarketing skills or the fast talking of a used car salesperson. Construction Start-Up sales requires the ability to initiate contacts, be organized with follow-ups and accept rejection. It sure helps to have a winning personality (to be someone that people tend to like), though you don’t need a specific personality type. To be successful in getting work, you need to be a bit creative, organized and willing to deal with fellow bipeds.

The Keep Score part scares many would-be entrepreneurs. It shouldn’t. Though the tasks are different from sales, the organizational skills are the same. The administrative portion of a construction company can be set-up well with some expert consulting advice. In fact, by utilizing new technologies such as cloud computing and smart phones, you could easily be operating at a more advanced level than most big firms. So if you can get the work and do the work, you can learn to keep score well.

Remember, when considering the construction industry, smart and fast beats big and slow.

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