When the economy and construction is booming, contractors may be able to get away with less-than-perfect management practices and financial controls. However, since the major housing correction about 10 years ago, plumbing contractors and businesses of all sizes have had to adjust and pay more attention to the internal side of their operations, especially key Read more
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When the economy and construction is booming, contractors may be able to get away with less-than-perfect management practices and financial controls. However, since the major housing correction about 10 years ago, plumbing contractors and businesses of all sizes have had to adjust and pay more attention to the internal side of their operations, especially key financial factors. However, we all get busy sometimes and need a quick refresher. Here are a few key tips contractors can use to use to review and run your business operations more efficiently and successfully.
Estimate Jobs Accurately
For many projects, contractors must submit bids well in advance of the anticipated start date. However, the actual cost of materials, labor, permits, and other factors can change before the job is completed-and sometimes even before it starts.
Today, accurate estimating is more important than ever. Otherwise, you can underbid on a job and wind up losing money and profit in the end. While everyone today is anxious to win a job, there’s no point in sending out bids so low you can’t make a profit on the work.
Handle change orders quickly
Here’s another area where contractors can get yourselves into trouble unless you estimate your costs accurately and communicate the situation to your customer. Determine the extra costs and get the customer to approve the change order quickly. That’s the best way to be sure you don’t end up eating those costs.
Stay on top of billing and collections
In leaner times like this, customers can start falling behind on their payments. Tracking your account receivables and the incoming cash flow is essential in order to identify collection problems and take corrective action before it’s too late.
In fact, contractors are advised to strive to be ahead in their billing on progress payments – just in case the customer runs into a problem. That means billing a littler more than your incurred costs plus a share of the profit you expect to recognize from the job.
If payments do fall behind, be polite but persistent in your collection activities. Keep the lines of communication open and try to work with your customer to bring in at least a partial payment, if possible. If you call every one – two days with a gentle approach not in anger or force, you might be paid before another vendor who sits back quietly.
Pay your own bills on time
By regularly paying your bills on time, you may be able to negotiate better terms with your vendors or receive advance notice on special sales or inventory closeouts on materials you buy. In fact, if you have been doing this, have you asked your sales or supply contact for a discount or special? Maybe it’s time to leverage your loyalty and partnership.
Review each project’s financial results
Get into the habit of reviewing the actual financial results of every project after completion. Look at the original budget, the impact of any change orders and the actual costs. If the profit on the job was less than expected, try to determine the cause. And if there was a flaw in the estimating or budgeting process, the time to update the figures is before submitting the next bid, not afterward. You don’t always need to add a higher price on your next bid, many times you will find internal processes, using new technology, or using new installation processes or products that vastly reduce your expenses to make a higher profit.
Reduce your risks
Review your insurance policies with your agent on a regular basis and keep your coverage up to date. The number of construction-related lawsuits continues to grow and you need to protect your business. If you hire and subcontractors on projects, be sure to verify that they are bonded and insured to limit your own potential liability. In addition, setting your own safety procedures can vastly reduce your worker’s compensation claims and insurance rate by a substantial amount. This means you can use that extra cash flow as pure profit or allow you to earn more jobs with the ability to submit lower bids with the insurance savings. Having a quality safety policy and procedure in place is vital to your business but very few contractors take advantage of this opportunity.
Think Training
Plan training activities that boost morale while adding to the company’s base of skills. People generally work harder for a business when they feel the company is taking care of them. Keeping your employees up-to-date on installation techniques, new products and skills will give you an advantage over your competitors. Think long term and remember that market conditions are always changing.
Manage your overhead
Take a close look at your financial spreadsheet and analyze those monthly costs. There may be ways to cut your utility bills, reduce monthly bank fees, revamp your business cell phone plan, or your inventory procedures.
Think seriously about reducing any costs you can. Good cost-containment measures can make or break a business in leaner times.
I just finished up a year of traveling for business and have learned several lessons on the road. When I travel by plane, I am TSA Pre-check so I never need to stand in the long line waiting for the x-ray machines. There’s no need to pull my shoes off or take my computer out Read more
I just finished up a year of traveling for business and have learned several lessons on the road. When I travel by plane, I am TSA Pre-check so I never need to stand in the long line waiting for the x-ray machines. There’s no need to pull my shoes off or take my computer out of the bag. I recently traveled from Phoenix, AZ and when I got to airport I discovered the Pre-Check line was down. In addition, there were about 150 people in line with only three lanes open and a forth is sitting vacant. At the end of this line was a sign that said, “Questions? Tweet TSA, @askTSA.” So I quickly pulled out my phone and sent over a question via twitter that said, “Why do we not have all 4 lines working and why is Pre-Check shut down?”
Before I got through the line I already have an answer from TSA. They came back and said that they try to match the expected load with staff, but missed the fact that the colleges in AZ were out for the holidays that added to the additional traffic. They did say that they were working to get extra help and had a guy walking the line asking people if their flight was leaving in the next 30 min. If so, they would move that person to the front of the line. So they were pro-active in doing what they could to help out.
I went through the line and got my computer out along with my toiletries and proceeded through the scanner. I then put my toiletries back in my bag and walked away without my computer. I realized this tremendous error when my flight landed in Denver and was not feeling good about this turn of events. Once again, I pulled out my phone and tried the TSA twitter account again. This time I tweeted, “Help, left my computer at terminal 2 in Phoenix, what do I do?”
They tweeted back and asked the time I was at the terminal, the date, and which terminal etc. After I replied, they said someone would call me when they located my computer. A lady called the next morning and said she had my computer. I arranged for it to be picked up and everything was all right in the world. I realize the TSA group is not always our favorite friends when we travel but when I needed them most. They were there for me using the latest technology and responding to my needs.
I stayed at a Marriott hotel called the Epicurean, a boutique hotel and gave my rental car to a valet to park. When I went to check out, I gave the attendant my claim check and went back in to settle up my stay at the front desk. The attendant pulled up and parked my car outside and ran out to get another car. When he came back by I asked for my keys but he did not have them. They were in his hand when he locked up my car but left them in another car. So I immediately thought, “My rental car is locked and the keys may be anywhere in the parking lot or possibly on the way to the airport in someone else’s car.” In addition, he cannot remember exactly where he left them. I had a flight home in a couple of hours so I was a little frustrated.
Then enters Genevieve Wojick, the front desk clerk who had helped me check out. She had seen me out front and noticed that I had not left yet and came out to see if everything was OK. She was cool and calm and told me not need to worry, she would handle everything. She said she would arrange for the car to be towed or a second set of keys delivered to get the rental car back. She also would get me a ride to the airport and let the rental car company know what was going on and that the hotel would handle any extra charges and I would not miss my flight home.
As she was calling a cab, the attendant came running back in and said he found my keys! I was so impressed that she had the ability to work past this potentially huge problem and handled it with such a calm manner that provided comfort. She was the “voice of reason” for me during this problem. Marriott does a great job in hiring people to work their hotels and she is a testimony to going the extra mile.
After arriving at the airport, I put my phone down on the scanner to read my boarding pass as I boarded the flight. The United Airlines gate agent said, “Thanks for flying with United Mr. Hinshaw.” I listened in amazement as she called out the people behind me by name as well. That has only happened one time before in my travels and it sure makes an impression.
As I boarded the plane, a tall flight attendant named Sylvia welcomed me aboard. She had a distinctive accent and I asked her where she was from. She responded “Germany.” She saw a young mom coming down the isle with a baby and child seat that was having a hard time. Sylvia said, “Let me help you.” She quickly grabbed the child seat and walked her to her isle. Coming back, she saw an elderly woman about 5 foot tall looking up at the bins wondering how she would get her bag up that high. Sylvia took the bag and hoisted it up for her pleasantly without a problem. That made me feel good about flying United.
So how does this apply to you and your business as a contractor? Do you equip your front line (or actually any employee) to handle a situation when something comes up you didn’t plan on? I am confident that Genevieve’s hotel manager did not have a “what do we do when the keys are lost” drill. I’m quite certain the manager does have a customer service policy that says “Make a decision in the best interest of our customers and we’ll figure it out later!” He assuredly gives them the authority to make things happen, and in my case, it eased my mind completely. What happens when a routine plumbing install doesn’t go as planned? For instance, what happens when someone from your team steps through a ceiling or damages adjacent mechanical equipment? The truly impressive companies today have a system and policy in place to work through those opportunities when they occur, not if they occur. And I said correctly, opportunities not disasters. A real chance to show your customer whether you and your company have honest integrity to take care of them and own your own mistakes. A chance to build complete and total trust if handled respectfully and properly. Good companies actually plan on a problem arising, sort of like a fireman training for a house fire. They train to put out fires with an actual burning building, not just by reading a manual.
What can your team do to make that customer seem special? Make it a goal this year to do more than just what is on the proposal, make the customer feel like you are looking to serve them, not just make a profit. Then your customer will know that you and your company are going to do whatever is necessary to provide the best service and install the best products in their home or building. When you go the extra mile and deliver more than what they expected, most customers become raving life-long fans that tell others about your company. Your customers are your best marketing team if you please them. They tell neighbors, friends, and share it on social media like Facebook.
So sit down with the entire company and ask them how they can make customers feel better by doing business with your company. Don’t have time? You might want to make time because some of your competitors are doing that today. If not, your customer may simply decide to work with your competitor instead in the future. Or you may turn them into life-long partnerships that will make your business grow and keep your customers happy at the same time.
A tractor trailer is more than just a large piece of on-road equipment. It’s a major investment, foundation to a livelihood and a home away from home. Collectively, big rigs are the engine that keep industries and economies in motion. But none of that comes cheap. A new truck and trailer can cost well over Read more
A tractor trailer is more than just a large piece of on-road equipment. It’s a major investment, foundation to a livelihood and a home away from home. Collectively, big rigs are the engine that keep industries and economies in motion.
But none of that comes cheap. A new truck and trailer can cost well over a quarter-million dollars, and that’s not including a lot of chrome and aftermarket equipment so often added to personalize vehicles. After all, plenty of truckers find ways to make their million-mile rolling office as comfortable as possible.
The miles are a given, so long as the truck is properly maintained, and clean. The challenge of removing snow, ice, mud and salt gave rise to the modern, roadside truck wash.
Washing big rigs – from over-the-highway trucks to off-road energy industry trucks – is infinitely more involved than washing cars. They’re bigger, sure, but they also come in a wide variety of sizes and shapes.
Water, the lifeblood of everything
“Whether you’re washing an oil field truck covered in 5,000 pounds of mud or you’re cleaning a chromed-out road truck, water is a huge consideration,” said Jyrki Koro, president of Truck Wash Technologies, Inc., in Sault Ste. Marie, Ontario. “It takes a lot of water, and it needs to be processed accordingly.”
With 21 years in the truck wash industry, Koro started the company in 1999, with a vision to develop the commercial, for-profit truck wash that has eluded other manufacturers to date. Designing superior automation and water treatment technology that can adapt to a very diverse trucking industry was key, but equally important is minimizing capital costs related to building and land, and developing a service and operational standard which allows the business model to work.
“Until recently, little has changed in the truck wash industry in the past 40 years or so,” said Koro. “We aim to provide a fast and affordable public wash that offers value and consistency while delivering what every owner wants: a clean and shiny truck.”
Their unique, innovative wash system provides an automated cleaning rivalled only by a long, labor-intensive manual wash, but utilizing advanced technology that delivers high wash quality with minimal labor costs.
For the portion of the wash when cleaning chemicals are used and also on the final, spot-free rinse, conditioned fresh water is used. For all other facets of the washing process, large amounts of recycled water are used. The fresh water portion of the system includes filtration, scale prevention and reverse osmosis for uncompromising purity.
“During the design of our truck wash systems, we researched the trucking industry to determine the needs of the end user and tailored a system using innovative designs and vendors to complement the application with quality components,” said Koro. Though he’s been designing truck wash systems for 16 years, the current model has been seven years in the making.
Two types of fresh water
As fresh water comes into the facility from a well or municipal supplies, it’s treated for scale prevention either by TAC (template-assisted crystallization) technology or traditional water softener with brine tank. Using both technologies provides a more cost effective approach to treating all incoming water to a degree that suits its application in the wash process.
If used for high-pressure rinsing applications, water first goes through a 100 GPM Watts OneFlow anti-scale system to treat water before entering a large storage tank for use. This chemical-free, TAC anti-scale technology bonds calcium ions together so that they’re inert, and won’t build up on surfaces downstream. It’s used chiefly to reduce the negative effects of water hardness (calcium carbonate) in plumbing systems, appliances, valves and other components.
After TAC treatment, water is used in the high-pressure, fresh water rinsing of the vehicle. For fresh water used during the chemical application process, a different anti-scale approach is used.
“Because calcium and magnesium rapidly absorb the cleaning chemicals and render them less effective, we need to be absolutely sure that all minerals are removed from the water stream for chemical application. TAC reduces scale buildup, but the ions are still in the water. So, a commercial Watts water softener conditions the water used in the chemical application. This amounts to roughly 30 gallons per truck wash.”
Fresh water supplied to the softener passes first through a large Watts carbon filter that features automatic backwashing. The activated carbon media in the large tank is generally used for dechlorination, removal of tastes, odors and as pretreatment for reverse osmosis systems. Chlorine causes destruction of reverse osmosis membranes and polymer based ion exchange resins used in water softeners.
A spot-free, final rinse is the very last phase of a truck wash. For this, water is treated by a large reverse osmosis system. A 4,400 GPD (gallon per day) reverse osmosis system provides ample water volume. The RO removes any remnant of minerals that could otherwise create powdery looking spots on the vehicle surface after drying.
Sediment removal
The freshwater purification components of the truck wash system insure we minimize chemical costs and produce a clean truck with no streaks or spotting. Nonetheless, recycled water does the heavy lifting.
Each Truck Wash Technologies system uses recycled water for the bulk of the washing process. Heavily-soiled trucks can require as much as 12,000 gallons of recycled water, but never less than 2,000.
“We have off-road trucks come in with so much mud that it actually reduces the amount of cargo they can legally haul,” said Koro. “Needless to say, this cuts into their paycheck.”
As the system’s moving gantry makes pass after pass over the vehicle, tons of sediment drains into an in-floor catchment system. A series of screens and settlement tanks strain solids from the liquid.
A cluster of high-volume hydro cyclones manufactured by Bailey-Parks Urethane provides a second level of water filtration, spinning fine dirt out of the stream in a centrifuge. Finally, a liquid polymer is injected into the water. This substance binds any remaining fine solids together so that they settle out more quickly. All sediment is continuously removed from the wash water and dewatered for ease of disposal.
On down the road
A Truck Wash Technologies installation will service upwards of 1,000 trucks each month. As drivers wait 15 or 20 minutes for their rig to come out sparkling clean, they’re oblivious to the hi-tech processes going on in the background.
Truck Wash Technologies currently has two truck washes in Canada, and a third under construction in Tacoma, WA. The company is slowly watching trends in the industry shift favorably.
“We have the potential to change the truck washing landscape in North America,” said Koro. “But being the first mover in a large, untapped market, it’s imperative we remain involved in all facets of the truck wash business to maximize the potential for our customers’ success. The superior technologies we’ve developed and assembled speak for themselves.”
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There was a great deal of activity swirling in the atmosphere in Hollywood, Fla., and fortunately it was all in the form of workforce development solutions, leadership tips, new technologies, and results-oriented strategies geared for PHCC members and their businesses. While Hurricane Joaquin only threatened to interfere with some travel plans home, attendees at PHCC’s Read more
There was a great deal of activity swirling in the atmosphere in Hollywood, Fla., and fortunately it was all in the form of workforce development solutions, leadership tips, new technologies, and results-oriented strategies geared for PHCC members and their businesses. While Hurricane Joaquin only threatened to interfere with some travel plans home, attendees at PHCC’s CONNECT 2015 stayed focused on charting a clear course for success for their businesses and the industry, engaging in valuable educational sessions, Product & Technology Showcase demonstrations, and those always-productive conversations with other contractors.
Some highlights of the week included
- Two inspiring keynote speeches:
“Digging for Hope: Turning Wine to Water and Other Modern Day Miracles” by Doc Hendley
“Lessons in Leadership” by the U.S. Navy’s first F-14 fighter pilot Carey Lohrenz.
- The annual changing of the guard of new PHCC officers.
- A recognition of the many deserving award winners.
This year’s top three plumbing apprentice awards went to:
- 1st Place – James Peterson, John J. Maurer, Inc., Cataumet, Mass. – sponsored by A. O. Smith
- 2nd Place – Jared Beninati, Evan Hibbs Plumbing, Portsmouth, Va. – sponsored by Milwaukee Tool
- 3rd Place – David Spaeth, Harty Mechanical, Austin, Minn. – sponsored by Uponor
The Foundation’s Plumbing Apprentice and Journeyman Training Committee members were on hand to set up and judge the contest, which was a highlight of the PHCC–National Association’s CONNECT 2015 Product & Technology Showcase.
In 2016, CONNECT heads to the Lone Star Next
They say everything is bigger in Texas! Make plans to come partner with your peers in San Antonio. Mark your calendars now…Oct. 19-21 at the San Antonio Marriott Rivercenter.
Check out more plumbing articles and plumbing news
Living in the 21st century it’s not always easy to keep up with all the innovativeness being thrown around. Everyday the world is introduced to new inventions which throw the old ones under the bus, never to be used again. Due to the fast rate of recent inventiveness, most products tend to be off the Read more
Living in the 21st century it’s not always easy to keep up with all the innovativeness being thrown around. Everyday the world is introduced to new inventions which throw the old ones under the bus, never to be used again. Due to the fast rate of recent inventiveness, most products tend to be off the shelves in no time for their newer bigger brother to reign supreme. It has been this way for a long time, and the only way to stay ahead is to build products that keep their niche within the industry they are sold. One industry has stood out, releasing newer and bolder equipment to their consumers for affordable everyday prices, the plumbing industry. Below is a list of the top 10 plumbing products of yesterday, today, and tomorrow!
- PEX Pipe – Throughout a half century of pivotal usage in Europe, this tubing has slowly but surely made its way to America. PEX tubing has become the single-most used product in the plumbing industry today, due to its variety of features at a fair cost. Virtually replacing the likes of Copper and CPVC, PEX pipe offers all the same advantages with plenty to spare. At nearly one-quarter the price of Copper pipe, PEX piping offer consumers’ easy installation, freeze-burst resistance, longevity, and most importantly the ability to install without any experience necessary.
http://www.canarsee.com/pex/pipe
- Tankless Water heater – Tankless water heaters have securely positioned themselves among this list, through sheer science and overall production. These water heater units are able to fit inside confined spaces; where they are connected to either a natural gas or electrical supply, to convert cold water to any temperature pre-determined by the consumer. The tankless water heater provides instant never ending hot water supply to any fixture it is installed to. Tankless offers all the advantages of a conventional water heater, minus all the necessary space to install one.
http://www.takagi.com/products/tankless-water-heaters
- Push-Fit Fittings – Fitting are installation products used too connect different plumbing pipes to form one solid piece of piping. They can be used to connect two different types, and usually require a professional to solder, glue, or use another connection method for proper installation. With the invention of push-fit fittings, the professional aspect of connecting two pipes has flown out the window. A simple push of the piping into its corresponding size on a push-fit fitting allows for a tight, secure, and properly connected component. This method of connecting a system has grown quite popular in the industry today, attaining interest from not only plumbers, but Do It Yourselfers (DIY) as well.
http://www.johnguest.com/speedfit/plumbing-heating-2/
- Anti-Siphon Freeze-Proof Sillcocks- Sillcocks used to be re-installed annually due to frigid weather conditions causing breaks and cracks in the equipments. This faltering eventually led to the invention of the Frost Proof Anti-siphon Sillcock faucets we are endowed with today. These Sillcocks are used to prevent the water line from freezing in the winter cold, along with restricting unsanitary water from contaminating the system. These advantages are the key to avoiding costly home repairs, and that’s why these Sillcocks made the cut.
http://www.americanvalve.com/plumbing/sillcocks/m72as.html
- Automatic Sump Pumps with Back-Up Battery – Sump Pumps are electronically functioning pumps used to remove excess water from a designated area. Their utilization is necessary to get rid of leaks, floods, and many other water related incidents. In some instances harsh weather conditions can cause a residence to not only flood, but lose power in the process. That’s when this little piece of equipments shines brightest. Equipped with a back up battery, this device is the perfect for accommodating its consumer regardless of the circumstances. This capability earns it a spot on the top 10 roster.
https://www.libertypumps.com/Products/Category/SubCategory/?s=23&c=14
- Macerating toilet – A Macerating toilets is available at all fixture depots where regular toilets are being sold. What makes them special is their ability to degrade any waste sent through the toilet, allowing the consumer to never have the need for a plunger in the residence. Most macerating units function by using a blade to chop down all human waste and toilet paper, in return attaining a smooth comfortable flush every time. A clogged toilet can cost hundreds of dollars to be fixed by a professional. Installing a macerating unit allows many advantages over a long period of time, making it fit perfectly into the 21st century plumbing products.
- Repair clamp – Repair clamps are specifically designed to lock in and hold the pressure and components of a broken or leaking pipe. These clamps are pulled around the pipe and securely tightened using various methods usually utilizing bolts. This allows for easy and quick adjustments to the problem, as opposed to having to re-pipe the damaged area. Considered extremely cost and time effective when compared to other methods, the repair clamp is constantly being utilized by professionals and DIY enthusiasts.
- Kinetic water Ram – A Kinetic Water Ram is exactly what the 21st century has expected from plumbing innovators. Through the utilization of kinetic energy, this device sends compressed air through the system to break the stoppage. This device can be used with sinks, toilet, and even tubs to quickly and cleanly get rid of clogs and build up. Pump, place, and snap the trigger to release a force of kinetic energy to unclog numerous fixtures? That’s why this product will continue to make the cut for our 21st century plumbing products.
http://www.drainbrain.com/pro/waterram.html
- Leak-Seal Tape – Tape is used on a global scale for quick fixes on a variety of different products. Probably the handiest tape to have around is leak-seal tape, which can provide a moisture and chemical resistance barrier to the product while adding corrosion protection. This tape is perfect for everyday fixes such as leaking pipes, faltered hoses, and even exposed electrical wires. For the price it’s being sold, and the abundance of applications it can be applied to Leak-seal tape that proven its value over and over again.
http://www.amazon.co.uk/Everbuild-EVB2SOSBK-Pipe-Repair-Tape/dp/B004GKSSF4
- Electric Pipe heating cables – Electric Pipe heating cables are only utilized during the cold months of the winter, where the piping in a system is expected to freeze. These cables are wrapped around a pipe and turned on using basic electricity to provide the piping with a freeze-proof resistance. If these safety precautions aren’t taken, the piping could freeze, eventually bursting and causing the owner to shell out big bucks on hefty repairs.
http://www.canarsee.com/12-ft-electric-pipe-heating-cable-110v-120v-66-watt
This article is provided as an “online special” and the views of the author are their own and not the expressed views of Plumbing Perspective.