Construction Industry/company organization

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Expert: - 9/3/2008


Question
what are 300 of the duties that a construction company must perform in order to be fully successful, and who do i assign these duties to?

Answer
Serge,

Please excuse my delay in responding - we are preparing for the hurricanes in S.E. Florida.

I don't know where you got the number 300 - but there are many duties that a construction company must complete if it is to be successful.

Assuming a company structure is in place:
    There must be a comprehensive accounting program in use.  That means also having an accountant or bookkeeper that understands the system.
    Next, an estimator is key to successful bidding.  It is essential that the plans are reviewed thorouhly, all materials are properly measured and the estimator must have a good understanding of each operation and it's labor factors.
    Supervision of a job is critical and the actions of the Supervisor or Foreman can make the difference of profit or loss.
    Cost Accounting is necessary in order to discover a problem before it becomes a major setback.  Records must be kept daily to know the labor and material costs as they relate to the budget and subcontracts.
    Cash management is critical.  You must not borrow from one job to pay for another.  Both jobs will suffer.  Keep records on each job independently.
    Control overhead.  Analyze your continuing expenses - rent, truck, fuel, telephone, radio, insurance, etc. to know your daily costs.  
    All contracts must be thoroughly understood.  The "fine print" can be the difference between profit and loss.

I wish there was a pat answer for your question.  Most companies operate on the same general principals.  Much depends on what your goals are - how big of a company do you want to be.  The industry as a whole is very fragmented.  That is, their are many, many more small contractors than big contractors.  You can be a "one-man" shop and do everything yourself or have a complete entourage of personnel with specific duties.  Overhead is a killer.  Just this week another major builder in S.E. Florida declared "insolvency" - the first step before bankruptcy.  And they were top heavy with management personnel.  

I hope this has been helpful.  

Roger

Construction Industry

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Roger Zona

Expertise

I am experienced in all types of construction: residential, industrial and commercial; single family, multi-family, mid-rise and high rise buildings (16 story office building) as well as remodeling, additions and tenant improvements. I can field most any question that relates to general construction. I have consulted with infrastructure (utility) contractors also and have a good general knowledge of underground utility construction for subdivisions and commercial projects.

Experience

After college, I began my career in the construction industry. I chose to become an apprentice Architect and 4 yrs later I opened my own architectural design firm. Six years later I moved to Florida to buy & develop land and build. I became a State of Florida Certified General Contractor and operated my business for 45 years. I built all types of residential and commercial buildings including warehouses, shopping centers, high rise apartments and office buildings and developed sites for other contractors. I retired and became a consultant to the construction industry. I maintain my license and continuing education requirements, operate a small construction company and write a weekly newspaper column for the Palm Beach Post (a Cox publication) with the byline "Ask The Contractor". I am the "technical editor" for a publisher of books that relate to home maintenance.

Organizations
Previously - NAHA Currently - FLCA (Florida Licensed Contractors Assoc.)

Publications
Palm Beach Post newspaper - weekly Q & A column Happy Herald monthly real estate publication - monthly column

Education/Credentials
Michigan State University University of Detroit BS in Engineering

Past/Present Clients
I built a home in Palm Beach for a member of the Pulitzer Family. I was responsible for the completion of a twin hi-rise condominium project for G.E. Credit. I was a partner in the successful development of a P.U.D. (Planned Urban Development) subdivision. I represented the largest home builder from France (Bati Service, S.A.) in the development of a subdivision and the design and construction of the homes.

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