The Contractor – Sub-Contractor Wars

I got an interesting call the other day and I think this potential client and I may have found a solution to the contractor vs. subcontractor wars. You know what I am talking about, right? The seemingly inevitable struggle between contractor and subcontractors – the contractor wants the project to come in at or under budget, the subcontractor wants to be fairly compensated for their work.

Well, after talking with this potential client, I offered to provide a quantity takeoff that he could furnish to the subcontractors. If the subcontractors were able to base their bid on this takeoff, then they could make apple to apple comparisons of the bids. This approach would be a better way to evaluate and compare the subcontractors.

boxer training

©123rf.com

Oh by the way… Is this the end all solution for strife between contractors and subcontractors? No of course not, but my potential client and I saw that providing the quantities for the subcontractors would be the best way for him to proceed.

Demolishing the Washington Monument

Could you imagine demolishing the Washington Monument and using the stone as road fill? I know I could not fathom doing that.  In Belize, there was a construction company that was demolishing an ancient Mayan pyramid and using the stone as road fill. Some of the regulations that are in place in the US may seem overly basic and common sense, but apparently everything does need to be spelled out. Otherwise people may try anything, such as the destruction of culturally significant places and structures.

Cost Estimator – A Thriving Career Field

A colleague sent me a blip from a Yahoo Education article on dying careers by Terence Loose. Cost estimator is listed as a thriving career alternative to an auto insurance appraiser. Here is part of the article:

 It’s been said that if you’re not growing, you’re dying. Well, that seems true when it comes to careers, too. Unfortunately, in today’s fast-paced, technology-driven world, sometimes it’s hard to predict which jobs will be winners and which will be losers. But understanding the likely trajectory of your chosen field will be crucial to your professional success.

“People need to ensure that they’re in an industry, or working to enter one, that has long-term potential and security,” says Debra Wheatman, a certified professional career coach and president of Careers Done Write. She says that if you’re not careful, you could find yourself putting your best earning years into a dead-end job.

Or worse: By the time you do see the light, you might be stuck. “A career change often times means you have to start over at a more junior level,” says Wheatman, “If you have a family or other debt obligations, it could be really difficult. These things have to be considered.”

With your professional future in mind, we combed the U.S. Department of Labor, the authority on the nation’s job trends, to find five common careers that may not be so common by 2020. And while they might not be completely phased out by then, they’ll likely be either on their last legs or barely staying afloat.

And yet there is a silver lining. We also identified five alternatives that the Department of Labor says have a more promising future. Read on to see if your career goals are destined for success, or headed to the unemployment line.

 Dying Career #4: Auto Insurance Appraiser

You know those nice men and women who tell you just how much damage your car sustained in your recent fender bender? Well, according to the U.S. Department of Labor, there will be far fewer of them in the near future.

Projected Decline: The Department of Labor says this occupation will contract by 8 percent between 2010 to 2020. And although that only amounts to 800 jobs lost overall, it will have a significant impact on the field when you consider that just 10,600 appraisers were employed in 2010.

Why It’s Dying: Believe it or not, the decline in insurance appraisers of auto damage is good news. Why? Because, says the Department, the loss of employment is due to our cars getting safer. That, they say, will lead to fewer accidents and this will mean less need for insurance adjusters.

So these workers might want to try…

 Alternative Career: Cost Estimator

If you’ve got a bit of the appraiser in you, cost estimator might be a better gig. These are the folks who collect and analyze data to estimate the time, labor, resources, and, of course, money it will take to produce a certain product or service, says the U.S. Department of Labor. It’s an important position for any business.

Projected Growth: Job opportunities for cost estimators will grow by a surprising 36 percent from 2010 to 2020, says the Department of Labor. What does that look like in jobs figures? Try 67,500.

Why It’s Growing: The Department says that this profession will grow as companies continue to look for more cost-effective services and products. The greatest growth, says the Department, will come in the construction industry, especially in national infrastructure projects such as roads, bridges, and airports.

Education Options: More and more employers of cost estimators prefer their candidates to have a bachelor’s degree, says the Department, and though field of study may vary by industry, a background in mathematics is important. Some employers could prefer candidates with business-related majors in areas such as accounting, economics, business, finance, and others.

Construction cost estimators, on the other hand, probably need a bachelor’s in building science or construction management, says the Department. Likewise, cost estimators working in manufacturing usually are required to earn a bachelor’s in engineering, math, statistics, or the physical sciences. Click here to read entire article.

Let me know your thoughts on the article.

Oh by the way… Thanks to Bob for sending me the article.

RTFM

Lately, I have been trying out new hardware, software, and apps.

When I try new products, I am one of the strange people that likes to read the manual. That way, I don’t waste time just trying to figure it out on my own.  There is an acronym for this and it is RTFM. If you are unfamiliar with the term you can find the definition here http://en.wikipedia.org/wiki/RTFM. You may be surprised what you may learn if you do just read the manual.

Once I have the basics down, I will ask other people that have used the product for advice on what they like best about it. Asking a person for what they consider to be a “pro tip” can help you find that hidden feature that you can’t live without. I have also found it very useful to watch demos online if there is no one that has the product that I am learning. I would go to YouTube, vimeo, or use my Google foo to find the helpful videos.

I know that many people learn in many ways, what kind of a learner are you?

DSS 35 – A Project I Would Have Loved To Estimate!

I have worked on some amazing projects in the past – a roller coaster, a man-made island, and a refueling station in the middle of an ocean. But I have never worked on something that was quite like this!

I recently saw a news report about the construction of the Deep Space Station 35 (DSS 35). They are about ready to set the big dish atop its support structure. You can watch the progress at the following links.

Webcam 1

Webcam 2

latestC2

Webcam 3

latestC3

Webcam 4

latestC4

Oh by the way… Thanks to Emily Lakdawalla from The Planetary Society for the showcasing these links.

Supreme Court Clarifies PTO Payout Rules

A local attorney published the following e-brief on a decision that requires employers in Nebraska to not only pay accrued vacation but also PTO time.  I thought it was a very interesting article and I wanted to share it with you on our blog site.  – Mark Mentele

Supreme Court Clarifies PTO Payout Rules

Do you pay accrued PTO to departing employees? If not, please read below because the law recently changed.

That was then . . .

On October 20, 2006, the Nebraska Supreme Court unanimously held that “accrued vacation time . . . is due and payable as wages upon termination.”  In Roseland v. Strategic Staff Management, four employees who voluntarily resigned demanded payment for their unused vacation time.  The company vacation policy provided that an employee accrued one week of vacation after one year of continuous service with the company, two weeks after two years of continuous service, and three weeks after five years of continuous service.  There were no other conditions to be eligible for vacation pay.  After the employees resigned, the employer refused to pay the accrued vacation because its employee handbook provided that “upon termination employees will not be paid for unused vacation time.”  The employees filed suit alleging that the company violated the Nebraska Wage Payment Collection Act (“Act”).  The Nebraska Supreme Court agreed.

Everyone knows that employers must pay unpaid “wages” after an employee resigns or is let go.  What is not so common knowledge is that the Act defines “wages” broadly to include “fringe benefits, when previously agreed to and conditions stipulated have been met by the employee  . . . .”  The Act specifically includes sick and vacation pay within the definition of “fringe benefits.”

In response to the Roseland decision, in 2007 the Nebraska Legislature amended the Act to clarify that accrued “sick leave” need not be paid out at termination. The amendment provided:

Paid leave, other than earned but unused vacation leave, provided as a fringe benefit by the employer shall not be included in the wages due and payable at the time of separation, unless the employer and the employee or the employer and the collective-bargaining representative have specifically agreed otherwise. 

But what about Paid Time Off (“PTO”), which typically allows employees time off for any purposes?  When the Nebraska Legislature considered amending the Act in 2007, it debated whether other forms of leave including PTO need to be paid out upon termination.  During the floor debate, Senator Abbie Cornett, the chair of the committee that advanced the bill to the entire Legislature stated:

The Committee felt that it was appropriate to address sick leave; however, there are numerous other types of paid leave, such as bereavement and paid time off, or PTO.  By using the generic term “paid leave” it is our intention that any type of paid leave other than vacation leave does not have to be paid out at the time of separation unless otherwise bargained. 

Consequently, many employers and a Lancaster District Judge (in Gallentine v. B&R Stores, Inc.) believed that “PTO,” a hybrid of vacation and sick leave, was different than “vacation” and not includable in “wages” after an employee resigns or is let go.

This is now . . . .

In July 2010, two employees separated their employment from PayFlex.  PayFlex denied their demand for payment of their accrued PTO hours because its policy clearly stated, “PTO will NOT be paid out upon separation of employment.”

Both the county court and the district court concluded that PayFlex’s policy deprived the employees of earned “vacation.”   The district court stated PayFlex’s PTO plan:

by its own definition, includes vacation leave.  There is nothing in [PayFlex’s] PTO program that designates or apportions its PTO to reflect a separate determination of earned vacation leave, and [PayFlex] admits that an employee could use all of his or her earned PTO for vacation leave.  The Court therefore finds that all of the earned PTO credited to [the employees] at the time of their separation from employment with [PayFlex] should be paid to the [employee’s.]

Upon appeal to the Nebraska Supreme Court, PayFlex contended that PTO hours are not unused vacation leave that must be paid to an employee upon separation of employment.  It also argued that the county court’s determination is contrary to the legislative history of the 2007 amendment.  The employees contended that because an employee can use earned PTO hours the same as earned vacation hours, PTO hours are an earned benefit—not a contingent benefit—which an employer must treat as “wages.”

On May 3, 2013, a deeply divided Nebraska Supreme Court weighed in on this debate and held 4 to 3 that the definition of vacation leave is indistinguishable from PayFlex’s definition of its PTO benefit because the PTO could be used for purposes of taking a vacation.

The court explained that vacation leave and PTO are not conditioned on anything other than an employee rendering services for an employer.  In contrast, “sick leave” is ordinarily understood to be paid leave for an illness or injury while employed.  In other words, the distinction between paid vacation leave, PTO and paid sick leave is that sick leave is contingent upon an occurrence and vacation leave and PTO are not.

What does this mean for Nebraska employers?  Upon termination, an employee is now unequivocally entitled to payment for any accrued and unused vacation and, because it is like vacation, for accrued and unused PTO.  The policy before the Supreme Court in the Payflex case contained a “use it or lose it” provision under which not all accrued PTO could be carried over from year to year.  The Court did not comment on this provision, but such provisions could pose problems for employers in the future.  Please let us know if you need help revising your PTO policy to minimize the impact of this decision.

woods itken

Woods & Aitken LLP focuses its practice of law on estate planning, labor & employment, bankruptcy, agricultural, banking, corporate, real estate, and other legal practice areas throughout the United States. For more information visit their website woodsaitken.com.

Bid Sim Part 2

When our local chapter of ASPE held a bid simulation for the college students we made the decision to have them not use computers.  Some of my fellow ASPE members were saying that we needed to allow the use of computers. Their reasoning was that it is what they will be using when they are bidding projects in the real world. The others side maintained the point of if you know how to do it by hand then making the transition to computer will be easy.  Also compiling a bid by hand leaves room for errors in your calculations and opportunities to learn from them.

One of the teams did make a calculation mistake while applying a percentage. If they had not made that mistake then they would have won the event.  I bet they will not make that mistake again!  However, if they had used a computer they probably would have not made the mistake, and therefore not learned from that mistake.

All seasoned estimators have stories of the mistakes they have made and learned from.  Why not have the newer estimators  make those mistakes when nothing but pride is on the line.

Bid Simulation

We had a few people at Tempest helping out with a Bid Simulation in collaboration with a local university.  The event was hosted by the Omaha chapter of the American Society of Professional Estimators. The students were graded on their effort during the bid simulation, so participation was mandatory.  The event was an eye opening experience for the students in regards to what actually goes into a bid on bid day. We had a few general contractors helping with any questions that the students had.

For the most part the students took the bid very seriously and worked really hard.  There was one area where they struggled though. The students did not ask enough questions to the subcontractors about their bids. That was a major downfall in their bidding of the project.  I would attribute the students not asking questions to their inexperience with the process.  This was a great learning experience for all that participated and I would recommend that you attend a bid simulation.

The Benefit of Being Honest

When I first started out in estimating, I made a huge jump from field helper to estimator.  Shortly after starting to estimate, I also began to manage projects.  I went from, as one of the foreman used to say, “his shovel with ears” to his superior in a matter of months.  The field craft guys and I all knew that I had not somehow magically gained a wealth of knowledge during that short time.  However, I was still able to successfully manage them.  The trick I used was not smoke and mirrors, but good old fashion honesty.

I have found it way more successful being honest with a person than trying to blow smoke over their eyes.  I remember some project managers that would always tell their foreman that the projects were losing money;  that they needed to hurry up to break even.  That could work for a while, but the long term result is that eventually they will catch on to you. On the other hand, I would show my foreman exactly what we had in the estimate for hours by system.  Not only did they consistently beat the hours, but when there was an issue, they would kick it in high gear to overcome the obstacles.

I believe that being honest built a strong relationship with my craft workers, in which they trusted and respected me as the manager.  With that trust and respect, I was able to achieve more with the same craft workers compared to other project managers that didn’t have this type of relationship.

Oh by the way, back in my younger days (prior to being 21), being honest with the law helped me keep a clean record.  I bet my friends back then wish they could say the same thing.

7 Must-Have Mobile Apps for the Traveling Construction Professional By James Benham

A few weeks ago I mentioned that I attended a training seminar with James Benham. James and I were talking afterwards – swapping blog writing stories. James was kind enough to let us share some of his blogs here with you.  I thought you might find some good information from this one here.

7 Must-Have Mobile Apps for the Traveling Construction Professional

By James Benham

Many construction managers now travel extensively in order to secure projects, visit job sites, and meet with project stakeholders. Areas of work are expanding and technology has made it easier for companies in different regions, states, and countries to work on the same projects – but there will always be a few project participants who must travel to be onsite, and whose role can’t settle with attending via Skype. For those who sometimes feel that they spend more time finding clothes in their suitcase than their closet, here are some of my favorite mobile apps for traveling.

Google Earth  - The whole world at your fingertips – or maybe just the location of the hotel or construction site you’re trying to find. Google Earth lets you explore anywhere on earth by location, business, geography, photos, integrated Wikipedia articles and more.

Tripit - Flight, hotel, rental car, send all your confirmation numbers and details to TripIt and watch as it organizes your schedule and provides a succinct snapshot of any and all trips. You can also share your trips with family and coworkers so they can keep track of you.

FlightTracker Pro – There’s nothing quite like rushing to the airport and skipping your favorite restaurant that comes before the security check only to find that your flight is delayed an hour. By inputting your flight number, FlightTracker Pro gives you real-time notifications of the status of your flight. We once had 10 clients fly into Houston and I monitored all ten flights from one app.

Autodesk Sketchbook Mobile – This is probably the most advanced drawing and painting application available. The zoom, utensil, color, sharing, and editing capabilities go far beyond what you would think possible on your mobile device. This tool is essential for documenting concepts and designs on-the-go, whether you’re an architect, designer, or just have a lot of ideas.

ENR Mobile News – This app provides an easy platform to read and stay current on-the-go with access to all the latest articles and content from Engineering News Record’s publications.

SmartBidNet – For all the preconstruction managers, estimators, and other commercial builders, this app lets system subscribers access bid project and subcontractor data on-the-go because Bid Day doesn’t care if you’re traveling or not.

MagicPlan – Estimate, measure, and calculate on-site using the camera on your phone and this nifty app. Creating and sharing a floor plan without picking up a pen or touching a computer will make you wonder how you ever got through life without a smartphone.

 Oh by the way… You can read more about James here.

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