Paid Construction Meetings Can Waste Money Or Be Your Greatest Productivity Tool!
Most Construction Meetings are designed to satisfy a legal requirement and end up being a boring waste of time for everyone and starts the day on a low tone.
For example if your construction meeting last thirty minutes, with six people being paid $25.00 per hour you just spent $106.92 {Fully burdened labor cost $35.64 x 6 people x 0.5 hours}
If Your Company Earns 10% Profit It Will Need $1,069.20 In Sales And Installation To Stay Even
Your Actual Costs May Vary As The Video Below Shows
Consider The Following:
In all our construction companies we used a process to encourage innovation and Optimize Production at three specific times during the day.
#1 Morning Meeting
Provide light snacks, pastries, fruit, bottled water, juice, coffee and tea*. Begin with the legal requirements and end with sheet of paper listing the goals for the day for EACH Person which the superintendent / foreman / lead person whatever title you use keeps in their portfolio.
#2 Lunch Meeting
Provide lunch* for everyone and EACH Person gives a morning progress report and afternoon target which is updated on the sheet of paper listing the goals for the day for EACH Person.
#3 Afternoon Meeting
Work stops ten minutes before everyone is due to clock out and everyone gives an afternoon progress report and next day target which is updated on the sheet of paper listing the goals for the day for EACH Person.
You should find production increasing steadily because everyone has a voice, Journeymen, Apprentices and Labors which creates a positive atmosphere and as a bonus you should find substantial increases in innovation as an ongoing process without disrupting production.
Why Provide Snacks And Meals?
Three Reasons - PROFIT!! PROFIT!! PROFIT!!
Your construction workers may or may not have a hearty breakfast before coming to work depending on a variety of factors outside your control and maybe theirs for that matter.
Well-fed construction workers produce more work, in less time with fewer mistakes which saves you time and money on your labor, material, warranty work and other costs.
After a few hours of intense construction work they could be a bit dehydrated and having burned a number of calories they could be getting important messages from their stomachs regarding food. This usually results in them slowing down a little bit....costing your company some profit dollars. What Does Ten Minutes Waste Cost Your Construction Company?
Real Life Example From One Of Our Construction Companies
The Names Have Been Changed
Our Construction Worker Frank skipped breakfast before coming to work because he did not feel like cooking.
When Frank Is Hungry he produces less work, in more time with more mistakes which costs us time and money on our labor, material, warranty work and other costs.
After A Couple Hours of intense construction activity Frank was dehydrated a bit and having burned a number of calories he was getting some very important messages from his stomach regarding food which caused Frank to slow down a little bit....costing our company profit dollars.
Lunch Time and Frank didn't pack a lunch because he wanted to "work through lunch" and leave early. If you were able to watch Frank real close around 02:00 PM you will see the metabolism dance right out of his body and now he is uncomfortable and getting a bit edgy, grouchy and a little bit nasty.
02:00 PM Until Quitting Time Is when Frank messes something up, get careless, and in some cases suffers an injury which requires medical attention, ($$$, Labor and Industries investigation, $$$) or if you are lucky his afternoon production will be roughly 80% of his morning production.
15 Minutes Before Quitting Time Frank begins picking up his tools and putting everything away in preparation to leave the job site.
Let's Run The Numbers
Without Snacks And Beverages:
With Snacks And Beverages:
This Example Shows profits that could be slipping through your fingers and you didn't even know it. "Profits Are Made In The Office, Not In The Field" - Randalism
What You Don't Know - Can destroy profitability because it is hidden. If you don't know how to analyze your QuickBooks reports get someone that does, perhaps Fast Easy Accounting.
If you ever wonder how I discovered these ways to optimize profits in a construction company all I did was invest several decades learning, studying and analyzing the principles that all successful companies have in common.
Perhaps you would enjoy some light reading. Download the two e-Books below to get started:
Or if you simply contact us for a FREE one hour consultation to learn how we may be able to help you get control of your contractors bookkeeping services, earn more money and have a better financial future.
Most of our clients have 1 - 10 employees, one location, most operate from their house and have annual sales under $1,000,000. A few of our construction company clients are in the $1M to $5M and only a handful are over $5M in annual sales.
QuickBooks Expert Specializing In Contractors Bookkeeping Services
About The Author:
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor and QuickBooks For Contractors Expert. This combination of experience and skill sets provides a unique perspective which allows him to see the world through the eyes of a contractor, Project Manager, Accountant and construction accountant. This quadruple understanding is what sets him apart from other Intuit ProAdvisors and accountants to the benefit of all of the construction contractors he serves across the USA. Visit http://www.fasteasyaccounting.com/randal-dehart/ to learn more.
