Tag Archive for: management practices

4 Tips on How to Manage Cash Flow in Construction Projects

Cash flow for a business indicates how much money they are spending and how much money they are making. A positive cash flow means that the business is earning more money than it is spending. A negative cash flow means the opposite and is a scary proposition for any business to encounter.

Cash flow in construction projects is exceedingly important. Construction jobs often rely on a steady flow of materials and labor to complete them. However, construction projects are often prone to large influxes of cash, say at the beginning of a project. And it may be weeks or months until another payment is made by the client.

This type of cash drought can leave construction teams in a tough spot, especially when looking to pay bills, purchasing more materials, or even meeting their payroll.

Why Forecasting Cash Flow is Important

It’s easy to assume that as long as money is coming in, you won’t encounter any cash flow problems. However, successfully managing your cash flow can also allow you to accurately forecast. By predicting when you’ll be paid and how much, as well as taking account of expenses that are on the horizon, it’s easy to anticipate cash droughts and avoid them. It also helps teams stay on budget. By maintaining a current account of what money has been spent and received, construction teams can see the larger picture of where the job is in terms of the overall budget.

How to Manage Cash Flow in Construction

Managing cash flow in construction projects is namely the same as any other business, but there are a few things you should pay close attention to:

  • Change orders – Process these when received, not when the project is complete. A change order is often the result of inclement weather or a need for more labor, materials, etc. Processing these orders quickly will positively impact the project’s cash flow.
  • Invoices – Don’t wait to invoice clients. Invoice them as soon as possible and as quickly as you can. Many companies expect a 30 day grace period to pay invoices, so in most cases, you’ll still have to wait weeks for the money to appear. You can also provide small incentives for businesses to pay their invoices faster; such as a 2% discount if they pay in 14 days. 
  • Payment methods – Another way to ensure faster payment is to provide multiple ways for clients to pay invoices. Make sure to include electronic payments and credit cards as part of your plan. Electronic payments mean that you get paid quickly and easily which increases cash flow and day-to-day operations.
  • Finance big purchases- Instead of paying all in one go, consider financing big purchases from suppliers. This will allow you more cash on hand to be used for the project. This does mean however that you’re at risk for interest charges but you may be able to write them off as business expenses.

Cash flow in construction companies operates differently than most businesses as not all projects are the same. That means that improving your cash flow in a project may require the use of different strategies.

Build a Strong Foundation with U.S. Bridge

At U.S. Bridge we work with our construction teams to successfully manage all aspects of a project, including cash flow. Please contact us if you would like to learn more about our bridge engineering and manufacturing or are interested in working with us. 

Or check out our exclusive BridgeScope tool for a quick quote today!

Construction Site Security Practices

Construction sites are a common place for trespassing and theft to occur, especially when working on residential and commercial sites. In fact, a study conducted found that less than 25% of all items stolen from construction sites are ever recovered. Strong construction site security can keep workers safe, save companies money, and keep projects on time.

Here are some key tactics to consider for maintaining a tight security and keeping your workers and materials safe.

Fences & Locks

Secure fences and locks are a great way to deter trespassers. Make sure that your construction site has a perimeter fence with strong locks to protect equipment storage, expensive supplies, and data. For an even more effective site security, consider tools like electronic locks with keycard or code access.

It’ll provide stronger protection and appear more intimidating to thefts or invaders. Plus, you can even limit access to areas of the job site for certain individuals.

Posts Signs Around the Site

Don’t underestimate the benefit of a well-placed sign. Signs that the site is under 24×7 video surveillance, as well as fines and penalties, can go a long way. This is a great option especially for construction sites that are left unoccupied for extended periods. Having signs around will often prevent theft and vandalism from young trouble-makers looking to stir up some trouble. 

Invest in the Right Tools

Video surveillance systems are a great construction site security solution. They can perform multiple functions, including a full view of your site, 24/7 motion-recording, or even thermal detection. Some systems are also monitored live by security companies who can directly contact the authorities if needed.

Nowadays there are a lot of different options for alarm systems. Instead of getting a loud overbearing alarm, consider a silent alarm that directly notifies essential personnel. This way you can avoid panicking workers or the thief and catch them without delaying the project.

If an alarm system is out of the budget, bright lighting is another great option that will keep your workers and materials safe. Not only will it make it easier for your crew but tools like floodlights make it difficult for thieves to hide or operate unseen. This can discourage them from stealing from your site to look for easier prey. 

On-site Security 

Hiring on-site staff is always an option when you’re looking for strong construction site security. However, this option may be better suited for bigger construction projects or those in residential and commercial areas. Depending on your location, you should be able to find various options for private security for hire.

While it may seem unnecessary, it can save you not only the money of replacing equipment and tools but also lost project time. Compare the costs against purchasing tools like cameras and an alarm system vs personal security to determine which option works best for your project.

Keep Meticulous Records

One easy and effective method for preventing theft is tracking tool usage and inventory. Knowing that at the end of the day someone is checking the items may dissuade workers from attempting to swipe a small piece.

Keep detailed records of what materials and machines are on your site. Write down serial numbers, the equipment’s PIN, or use barcodes to keep easy track of your items and where they should be. Consider registering with companies like the National Equipment Register or the Heavy Equipment Registration to register your heavy equipment. Registering your equipment will help law enforcement to locate and recover your stolen items.

Construction site security concerns everyone involved in the project. Enforce a zero-tolerance policy regarding site access and site conduct. This policy along with the tips above should keep your construction site safe.

Build with U.S. Bridge

With decades of bridge design and building experience, U.S. Bridge is proud to work with companies all around the world. Our bridges are well-made, easy to maintain, and available in a variety of designs. We are confident that our engineering and manufacturing expertise will fit the needs of your project. Contact us on our website to learn more about our bridges or how we can help you with your project. Or fill out our exclusive BridgeScope tool for a quick quote!

Whatever span you need to cross, U.S. Bridge has what you need.

Tips for Conflict Resolution in the Construction Industry

Unresolved conflicts in any workplace can cause a handful of lingering ill-effects such as poor morale, hostility, and inefficient work. The most effective way to handle a dispute is by being prepared with a response plan. To help we’ve compiled a list of tips for conflict resolution in the construction industry.

Addressing the Conflict

Whether passive or combative, allowing conflict to linger is deadly for workplace morale and productivity. Disagreements can easily occur in projects between crew members within a team, supervisors, suppliers, or contractors. Your first step should be to address the conflict head-on as quickly as possible with all the parties involved. The most effective way to do this is by understanding the underlying points of the situation.

Arguments are often due to misunderstandings between parties caused by poor communication or by different interpretations of the project. Sometimes the wrong materials are delivered, equipment is damaged, or a crew member isn’t abiding by company rules. This can delay productivity and jeopardize the project.

As construction sites are already a stressful environment, you might have to calm everyone down before you can get them to calmly discuss what happened. Building a timeline and talking to others helps ensure that there isn’t another underlying cause that you’ve missed that could arise again later.

Then, once you’ve identified every individual involved and their point of view you can then begin to determine how everyone arrived at their current state. 

In some instances, it is easier to keep the dispute contained, however, if the issue is more pervasive it may need to be addressed at a larger scale, for instance, throughout an entire department.

Developing a Resolution

A strong conflict resolution ensures that everyone impacted understands the decision initiated. When developing a conflict resolution on construction sites, or really in general, chances are not everyone will be thrilled with the final result. Demonstrating competence, fairness, and respect for the project and all its stakeholders will encourage others to feel confident in your decisions.

By this point, you’ve already identified the root cause. Most likely your project is comprised of various team members, so you want to build a compromise that will salvage your relationship.

But don’t just focus on the people, instead, look at the problem itself. Consider what is important vs. what is urgent for the matter at hand and the project overall. An acceptable solution often requires both disputants to compromise.

Be clear in your delivery. It’s vital that everyone understands what to expect moving forward. Once a decision is made, offer a rationalization and a follow-up to make it easier for others to accept.

Consider Proactive Measures

You don’t have to wait until after a confrontation to start thinking about how to stop fights. Businesses can take proactive steps to avoid conflicts by building teamwork and enrolling their crew in conflict resolution training. Although this may seem more costly and time-consuming in the beginning, it does save crew time, money, and face by being able to avoid conflict before it even begins. Not to mention, it leaves a better impression on others.

In the end, conflicts are going to happen in any workplace. What’s important is how you react to them. The best way to keep productivity, employee morale, and overall job satisfaction up is through a well-established plan. 

Success with U.S. Bridge

When it comes to your construction project you only want the best. Our 80+ years working with various companies all across the world has provided us with the skills and experience needed for even the most challenging projects.

At U.S. Bridge, we serve to meet the needs of our customers and the industry with our high-quality materials and skills.

Interested in starting your project with us? Contact us for a free quote or check our exclusive Bridge Scope tool to start building your project today.

A Construction Crisis Management Plan

A crisis on a construction site can mean a lot of different things; a natural disaster, medical emergency, hazardous materials or accidents, and more. No matter what it is, a crisis will always have a huge impact on job sites and project funding. The best way to mitigate its effects is with a well-developed crisis management plan. But how do you plan for the unexpected?

The Importance of a Crisis Management Plan

A crisis in any job occupation is a mess and naturally the same applies to construction. It affects all subcontractors, trades, and shipments involved in the project. Plus the delay means a potential loss of money and credibility. A company or crew that can successfully navigate that kind of situation not only proves its leadership and adaptability but also leaves a positive impression.

A prompt and well-organized response will minimize the negative effects of a crisis on the project and your business.

Identify Potential Crises

In order to properly plan for something, you need to know what exactly you’re planning for. Obviously, this becomes tricky when you’re trying to plan for something unexpected. But one way to make it easier is to identify every potential crisis in a project before construction even begins. Even if it never actually happens it’s good to acknowledge every area of the project that could go wrong or that could be a potential danger to the crew. Once you thoroughly identify every potential crisis then you are able to take the next step of the planning process.

Develop a Response

With your list of potential crises, you can now begin crafting a practical strategy. The best crisis management plan is tailored to the construction project and takes location, type of construction, and external conflict into consideration. Understanding what and who is needed for each crisis early on will help you establish a well-planned and effective response. Using this information, create step-by-step templates for different emergency situations. This guide should include a list of risk factors, site hazards, and each person’s role before, during, and after the crisis.

Now, you can then begin to consider what resources such as equipment and materials are needed to address the situation. In addition, you should predetermine your evacuation routes and communication line beforehand and confirm that your crew knows as well.

Establish a Communication Line

An important part of your crisis management plan is establishing a line of communication with local off-site first-aid responders such as hospitals, police, and fire departments. Connecting first responders with construction engineers, project managers, or others who have a thorough understanding of the job site will speed the crisis response. In addition, develop an efficient method to communicate with employees and their families in emergency situations.

The coordination of a well-developed crisis management plan will help you not only handle the crisis as it happens but become pivotal in the investigation of the crisis afterward.

Train your Team

A good crisis management plan is only helpful if your team actually knows it. Training will help your team recognize their areas of weakness as well as any weaknesses in the plan itself. Include a safety checklist to determine how prepared your team and job site are for a real crisis.

Create a system or policy that confirms that training is updated regularly to ensure the best results. Conducting mock drills and training will not only reinforce the plan to your crew but also produce a prompt and well-trained response.

Consider the Aftereffects 

The crisis doesn’t just end when the emergency is over. As a business, it’s important that you have a public relations strategy prepared to avoid causing irreparable damage to the company. This plan of action should specify what you can and can’t say as well as who will be overseeing public announcements. It’s important to have a strategy in place beforehand when you have more time to think than make a mistake in the heat of the moment.

Working with U.S. Bridge

Our 80 years of construction experience is why we can handle construction projects of various caliber. We are confident that our engineering and manufacturing expertise is just what you’re looking for to complete your project! Contact us on our website to learn more about how we can turn your project into a success or fill out our exclusive BridgeScope tool for a quick quote.

How to Find Qualifying Subcontractors

Subcontractors play a key role in any construction project so it’s important that you hire a qualifying subcontractor that will ensure your project’s success. But how do you know what to ask or look for? Here’s a brief introduction to the role of a subcontractor and what should be included in the prequalification process.

What is a Bridge Subcontractor?

In every major bridge construction project, you’ll find a general contractor and subcontractors. The contractor is the manager of most bridge projects; they are essentially in charge of the overall coordination of the project. They’re hired by a municipality or other key stakeholders, and ensure that projects meet their approval.

Subcontractors on the other hand can range from a single person to a large company and are typically hired by the contractor. However, that doesn’t make them an employee of the general contractor as subcontractors are independent businesses. Contractors can hire subcontractors for different reasons such as performing construction tasks, supplying equipment or other materials, and more.

Why it’s so Important to Prequalify your Subcontractors

Prequalification is gathering information about interested subcontractors to assess their capability to complete the project. It’s an important part of the preconstruction phase. A well-thought-out prequalification process not only reduces liability and insurance claims but presents safer worksites and increases profit potential.

This process also ensures that you are selecting the best subcontractor for the needs of your project. Although a subcontractor may be a great choice for one project it does not guarantee that they’ll be the best choice for the next.

Even though this process may initially seem like a waste of time and resources, it actually saves your project from significant financial loss down the road.

What to Consider When Looking for a Qualifying Subcontractor?

When it comes to creating a thorough prequalifying process, it’s important to request information such as the subcontractor’s safety records, finances, litigation history, insurance coverage, relevant work history, and experience, etc.

Financial

Before hiring a subcontractor, you can request financial information such as current year revenues, total and current assets, net equity, current liabilities, average monthly billings, and if available their Dun & Bradstreet number. This will reveal any obvious red flags and help you avoid financial risks.

Litigation History

A company’s litigation history is important as it provides insight into their relationship with previous clients and how likely they are to breach a contract. Find out if they’ve ever had any labor law violations, if their license has ever been suspended or revoked, and if they’ve ever been terminated from a contract. Additionally, inquire if the company has had any judgments filed against them.

Safety Records

It is crucial that you carefully review the safety records of any potential subcontractor. Request information such as their OSHA 300 information, any citations issued, and their Experience Modification Rate for the past three years. Not only that but also implore about their training program and safety plans.

Ask for References

You’ll want to ask your potential subcontractors to provide a handful of references about– three to four. These references will demonstrate how well they collaborate with other contractors on projects as well as the quality and dependability of their work.

Qualifying subcontractors won’t have any issues providing contacts, and sometimes employees can also verify the company’s credibility.

Working with U.S. Bridge

When it comes to hiring contractors or subcontractors for your project, you want to make sure that you’re hiring the best. Our 80+ years working with various companies all across the world has provided us with the skills and experience needed for even the most challenging projects. At U.S. Bridge, we serve to meet the needs of our customers and the industry with high-quality bridges and materials.

Contact us on our website to learn more about how you can collaborate with us or fill out our exclusive BridgeScope tool for a quick quote.

The Best Practices in Bridge Management

Proper bridge construction management is necessary to keep a project organized and completed within the budget and schedule. However, managing such a large project such as a bridge’s construction may seem daunting, so we’ve listed some of the best practices for maximizing your chance of success.

Determine the Scope of the Project

Like in any other industry, proper management is essential to a construction project’s success. What’s the best way to pre-plan your project and effectively manage it? Well, a great solution is by working with key stakeholders to determine an accurate scope of the project.

Understanding the scope is one of the first steps in the successful management of bridge construction. This means taking the time to create a thorough breakdown of what’s required for the project such as:

  • Identifying what is within or out of scope.
  • Noting the work required, the team performing the work, and the schedule of its completion.
  • Include any important elements that may impact the outcome.
  • Determining the constraints that might limit or negatively impact the outcome of the project such as resources, procurement issues, timing, etc.

Once you work out the scope, you can now move on to planning project decisions such as deck construction, railing criteria, live loads, etc.

Start Creating Plans and Strategies Early

Your planning process is essentially how you will achieve the goals set out within the scope. The reality is that while a project of the highest quality scope, at the lowest price, done in the least amount of time is ideal, it is difficult to achieve. Hence, a strategy-based process is necessary to achieve your overall objective.

Understanding your project’s success metrics is key to streamlining the decision-making process. In other words, determine project components such as feasibility, procurement, construction, close-out, and more to effectively work towards accomplishing the goal. In addition, as the project progresses you should continually refer to your detailed scope to determine if there are any changes and how they will impact the project. Recognizing and implementing adjustments in a timely manner will help reduce delays and risks.

This means start planning long before the actual construction begins, and continue revising until the end of the project. The design, pre-construction, and procurement stages of a construction project all require meticulous planning — and may need to be revised as the project progresses.

A properly planned out and scheduled project is a well-managed and successful bridge project.

Ensure Quality Construction

The quality of the construction is a big part of its success and reflects your skills in bridge management. Thus, in your planning process, you want to consider options that will create lasting effects. Consider utilizing durability solutions such as special enhancement and treatments. Galvanized or weathered steel is a popular option to slow the process of deterioration.

Not only should you be deciding what materials and methods to use, but who the manufacturer should be. Supply chain management helps you stay organized and save money. This means careful management of suppliers, manufacturers, distributors, contractors, and designers.

Pay attention to the order and delivery of materials on-site, the selection of contractors, their involvement in design and planning, and methods used to reduce invoice and transaction costs. In addition, reinforce collaborative methods with those involved in the project to keep the system flowing. This will encourage proper accountability, support, and incentives from supply chain partners.

Starting a project with these practices in mind minimizes disputes and delays. Not to mention, it improves safety and business practices and develops better project relationships.

Trust us to Build your Bridge

Our 80+ years working with various companies all across the world has provided us with the skills and experience needed for even the most challenging projects. We are confident that our engineering and manufacturing expertise will fit the needs of your project. Contact us on our website to learn more about how you can collaborate with us or fill out our exclusive BridgeScope tool for a quick quote.