Contractor Business Quarterly INSIGHT and ANALYSIS for STRATEGIC LEADERSHIP May 2015

Contractor Business Quarterly INSIGHT AND ANALYSIS FOR STRATEGIC LEADERSHIP May 2015

STRATEGY STRA CONCIERGE CONTRACTING Shawmut Design and Construction CO President Lee Hiscoe builds a C customized service model for clients

c PHOTO BY JAMES LEYNSE EMPLOYEE SMART PICTURE WORTH OWNERS TOUT SATISFACTION REPORTING PERFECT RETWEETING VALUE OF BIM New survey says Safety experts offer Jobsite photography How peer-to-peer Industry research construction workers tips on how to keep becoming a skilled websites help to reveals owner trends are among the recordables low trade in its own right manage equipment in virtual building happiest (p. CBQ9) (p. CBQ13) (p. CBQ16) sales (p. CBQ19) (p. CBQ21)

CBQ1 ENR Contractor Business Quarterly Ⅵ Season 2012 enr.com

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GLOBAL MERGERS AND ACQUISITIONS- Rockville, Md., which specialized CATCHING THEIR BREATH AFTER BUSY 2014 in renovations of landmark fed- Number of engineering and construction sector transactions valued at $50 million or more eral buildings, died on April 17 250 in Bethesda, Md. James C. “Jim” Number of deals Smith, 74, who led the construc- 218 Number of deals excluding deals “IT’S A 200 with U.S. targets and/or acquirers tion program at Texas A&M Uni- Number of deals with U.S. targets PUNCH IN and/or acquirers versity and was a sta member of 173 173 THE GUT 150 the U.S. Senate Armed Services TO SEE PAY 134 Committee, died on April 20 in DISPARITY 100 Houston. The cause of death was WITH A cancer, the school says. MAN FOR 50 THE SAME 45 LEGAL 39 34 32 WORK. YOU 2 FIRM FACES CRIMINAL 0 HAVE TO 2013 2014 2015 CHARGES IN FATAL CRASH FIND THE SOURCE: PWC NASHVILLE READY MIX INC. and FACTS, FIND MERGERS AND ACQUISITIONS its president, Mark S. Mead- YOUR VOICE, ows, face a 24-count indictment TAKE A RISK Taking a Pause? charging vehicular homicide and AND SET reckless homicide after one of the THE RIGHT 2014 WAS DIZZYING in the number and size of industry mergers and acqui- ready-mix firm’s trucks su ered a PRICE FOR sitions “as firms made aggressive moves” to acquire capabilities and market brake failure, causing a fatal crash YOURSELF.” share, says management consultant FMI. Global M&A activity was “near in 2013. The charges, brought by —Ivette Vanas, Senior Vice President, record” last year, adds consultant PwC, but shows signs of decline in 2015’s a Cheatham County, Tenn., grand Skanska, at the ENR Groundbreaking first quarter. The firm says low oil prices, an improving U.S. dollar and re- jury, could generate fines of up to Women in bounding European economies may drive “a modest expansion” of M&As, $3 million against the firm, says Construction conference, May 6, in even as currency pricing and other factors “may obscure” deal growth. FMI Bob Wilson, assistant district New York City sees oil prices as a risk factor, creating a “wait and see” approach, it says in attorney. The case is one of the few a May 6 report. Clouded public-project funding outcomes and sector mis- in the U.S. that led to a corporate matches in available buyers and sellers also could impact activity, says FMI. criminal indictment for vehicular % homicide, says Wilson and Hal 7.5 Hardin, a company attorney. MOVERS AND SHAKERS Jay McQuillen Jr. has joined Construction STERLING CONSTRUCTION has Garney Construction as president PROJECT DELIVERY jobless rate in April, down from named as its permanent CEO of its new federal business unit PREFAB BARRIERS SEEN 9.5% a year Paul J. Varello, who had been and to expand its western U.S. RESPONDENTS to a National earlier, said the U.S. Labor Dept. firm chairman. Formerly chair- operations. He was a vice presi- Institute for Building Science on May 8. The man of oil-and-gas-sector firm dent of Granite Construction Co. study released in April say design total of 652,000 unemployed Commonwealth Engineering & Dale Swanberg has joined Granite and construction culture and workers is the Construction, he replaces Peter as vice president and deputy factory-to-site distance are the two lowest since 2001, but AGC MacKenna, who left Sterling after group manager for large projects. biggest barriers to use of prefabri- economist Ken two years. He is a former Skan- He had been COO of Flatiron cation, modularization and o -site Simonson says job growth is ska executive. Vanir Construction Construction since 2012. Sundt construction. But respondents “spotty” in Management Inc. has named Guy Construction Inc. has hired Thomas also rank schedule advantage— sectors. Mehula as president. He was a re- S. Case as senior vice president and speed to market—as key gional president at Parsons Corp. of its civil group. He had been a benefits, followed by quality and and replaces John Kuprenas, who Granite senior vice president and cost e ectiveness. About 93% of GET MORE left the company. The ironwork- is now chairman of the Associated respondents say they have used ONLINE ers’ international union board General Contractors’ highway and some o -site fabricated compo- has elected General Secretary transportation division. nents, while 83% expect to use the Eric Dean to fill out the term of approach to the same degree or President Walter W. Wise, who will IN MEMORIAM greater in the next year. The survey For information on retire July 1. Dean will serve in MARTIN R. GRUNLEY, 98, found- had about 312 respondents. other people, visit the role until Dec. 31, 2016. er of Grunley Construction Co., —Debra K. Rubin enr.com..

enr.com May 2015 Ⅵ ENR Contractor Business Quarterly CBQ3

(15B&%4BB%8==LQGG 30 05112015133707 STRATEGY Ⅲ COMPANY PROFILE

CUSTOMIZED SERVICE MODEL APPEALS TO A-LIST CLIENTS Boston’s Shawmut has tailored its business model to provide highly personal service to its high-proﬁle clients across the country BY JENNIFER SEWARD

ooking through Shawmut Design and Con- tele with a customer-service model that makes it feel struction’s portfolio is like browsing a list of like a much smaller contractor. Specialized groups— who’s who in the industry. Headquartered called project teams—focus their expertise within one Lin Boston, the firm has strategically placed of Shawmut’s eight divisions: academic, tenant interi- its other oces to focus on clients in New ors, cultural and historic, health care and life sciences, York; Las Vegas; Los Angeles; Miami; North Haven, hotel, restaurant, retail and sports venues. Conn.; Providence, R.I.; and West Springfield, Mass. Each team is designed to operate like a $30-million The 33-year-old, $968-million national construc- to $60-million business. A project executive leads a tion management firm is known for completing com- Shawmut team that stays with a client from project to plex and logistically challenging projects for retail project on a nationwide basis and provides continu- stores such as Louis Vuitton, Polo Ralph Lauren and ity and a single point of contact. The project execu- Christian Dior; high-end hotels; celebrity-chef res- tive serves as the team’s account manager, determines taurants; Ivy League universities; and other clients stang needs and directs all budgeting, scheduling with a need for heightened detail and a touch of class. and procurement. Shawmut meets the special needs of its A-list clien- “We’re a large company and we’re proud of that. We’re also proud of our highly personal service—the kind you’d expect from a smaller company,” says Les Hiscoe, Shawmut president and incoming CEO. Hiscoe will suc- ceed current CEO Tom Goemaat, who is retiring July 1. “Our project executives handle one or two customers,” Hiscoe adds. “These feel like small business owners running a small segment. We want the customer to feel that personal attention of a small company but with absolute confidence in the resources of a large company.” “The result is the best of both worlds—the horse- power of a billion-dollar company with focused service from these individual smaller groups,” adds Randy Shelly, Shawmut vice president. “The fact that we do work nationally appeals to many clients. They know what they’re going to get from one project to the next, and it eliminates risk for them. Instead of finding a contractor in each city, they know we will deliver. Shawmut is currently 30% along on construction of the single largest project in It’s a luxury for them to have someone they know any- the firm’s history, a $175-million complete renovation of the 15-story InterConti- where in the country.” nental New York Barclay. The project is located on the corner of 48th Street and Lexington Avenue in midtown Manhattan. Built by the New York Central Railroad, Strategic Locations the historic hotel’s renovation requires coordination with the MTA and constant “When you think of luxury [builders], the first thing communication among the project team to upgrade all 702 guest rooms, the you think of in this industry is Shawmut,” says Loretta lobby, gin bar and restaurant, InterContinental club lounge and fitness center as Turk, senior director of construction for Ralph Lau-

well as add two ballrooms in the building’s lower levels. ren. “Shawmut has the experience, knowledge and SHAWMUT OF PHOTO COURTESY PHOTO BY JAMES LEYNSE

CBQ4 ENR Contractor Business Quarterly Ⅵ May 2015 enr.com

(15B&%4BB&6LQGG 30 05112015122222 PHOTO COURTESY OF SHAWMUT (15B&%4BB&6LQGG

PHOTO BY JAMES LEYNSE enr.com on store flagship Vuitton Louis 8,000-sq-ft the of tion renova- ayearlong completed Shawmut centers. city burgeoning those in opportunities into tap to year this earlier Miami in oce an opened just and ago years says. us,” Shelly benefitted has is growth the where being center; urban the in really is focus Our retail. and restaurants high-end these spawning D.C. and are L.A. York, New velopments in Miami, de- residential urban “Large-scale centers. urban to back shift apopulation to part in growth the tributes for 2015—and at- $330 million 2011 aprojected in to million $139 from increase sector—an hospitality its York Miami. and New in stores Lacoste building Lauren, role Ralph at Turk her to with worked prior Shawmut Galleria. ton Hous- the Vegas and Las in Forum Caesar’s at stores restaurant. Lauren Polo Ralph the and rock river and stone wood, carved custom fireplaces, working four includes site high-end the ing, Build- Avenue Coca-Cola the in on Fifth mer. Located sum- York New in last store City flagship 35,000-sq-ft house.” the of back the from you supporting them hind [Shawmut] your with ing be- but rep, there’s ateam You’re stores. deal- retail of doing high-end longevity The builder launched an oce in Los Angeles two two Angeles Los in oce an launched The builder in growth significant seen has Shawmut says Shelly Lauren Polo built Ralph has also The contractor Lauren’s Polo new completed Ralph Shawmut

05112015122237 projects that have been in planning for many years years for many planning in been have that projects fund up to alot of donors stepping we’reside, seeing “And says. private on the Simoneau schools,” for its over year, says RonSimoneau,Shawmut vicepresident. 25%growthyear yearandareprojecting last revenue Ivy ocesearned$367millionin schools.The League academicclients,includingfiveoftheeight onkey cus tothemprovidebetteroce toberightnext service.” volves aroundthis,includingsetting upregionallyinan happen todoconstruction,” Hiscoe says. “Everythingre- thread.” common the is ness—this busi- their not disrupt to important it’swhere very sector, this work “We in how to son,” says. know Shelly o-sea- the in events and concerts having continually They’re close. venues never Sports work in. to dicult are environments retail neously. luxury “All of these simulta- site project each at located superintendent a with stadiums, baseball major league 28 dierent people. 500 up to seat can that patio outdoor an featuring arestaurant and bar; arooftop stadium; a baseball inside market tegrated in- fully first the Market, Seaside the year—including last Diego’s Park for Petco San concepts concession new built and January in Drive Rodeo Hills’ Beverly “Massachusetts has had a robust building program program building arobust had has “Massachusetts Shawmut’s New Englandoceswerecreated tofo- “We just we firm; a client-service ourselves consider in working was Shawmut year, last time this At May 2015

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ENR Contractor Business Quarterly tion.” tion.” do construc- happen to ﬁrm; wejust client-service ourselves a “We consider CEO CONCIERGE to itsclients. focused services provides highly management ﬁrm construction the $968-million a culture inwhich has helpedcreate incoming CEO, president and Shawmut Shawmut President President Shawmut and IncomingCEO LesHiscoe, — LesHiscoe, CBQ5 30 STRATEGY Ⅲ COMPANY PROFILE

CONTEMPORARY UPGRADE Shawmut’s renovation and expansion of the Isabella Stewart Gardner Museum in Boston included a 300-seat performance hall and a 2,000-sq- ft exhibition gallery.

PRESERVING and are now moving into construction. We’re putting “Like most firms, we did downsize during the reces- HISTORY a lot of people back to work.” sion. Some [reduction in sta] was healthy and some Shawmut’s 115,000-sq- Shawmut’s academic unit specializes only in aca- was due to the economy,” Simoneau says. “What it’s ft renovation demics. From its estimators to the project manag- really done is let us look at our processes, what we do of St. Mary’s ers and down the line, these individuals specialize in and how to be an e cient company. There was a lot of Hall at Boston College spanned space planning, climate control, furniture, technology price pressure [during the downturn] to sta projects two years and and issues that give their educational clients access to e ciently while maintaining the high level of client incorporated a high degree of expertise. service we’re known for.” new construction and historic Recent New England institutional projects in- Shawmut partnered with an outside technology con- preservation clude Boston College’s St. Mary’s Hall in Chestnut sultant to map out all of its processes and looked at how to methods using Hill, Mass.; the Bruce C. Bolling Municipal Building execute them with technology to become more e cient. BIM expertise. in Roxbury, Mass.; and Brown University’s Applied “Most companies look at their existing processes and try Mathematics Building and RISD’s Eliza G. Radeke to shoehorn technology into them,” Simoneau adds. Building, both in Providence. Today, the contractor is back up to its prerecession numbers. Its 1,100 employees completed 500 proj- New Technology, Systems ects last year, including its first $100-million job and a Construction of Brown’s 13,000-sq-ft Applied Math- handful in the $70-million range, with the majority of ematics Building, a design-build project, led to the its projects between $2 million and $10 million. $80-million expansion of the School of Engineering on A 100% employee-owned firm, Shawmut’s culture the math building’s former site. The new engineering of ownership is created through its leadership de- building is being constructed through an integrated velopment program, an immersion plan designed to project delivery model (IPD). The owner, architect, take college graduates through a three-year program, contractor and major subs all share in a risk pool to spending a year each as a project manager, estima- keep the project on time and on budget. tor and superintendent. As the newbies reach higher “This ties everyone’s performance to the overall levels, executive management classes and programs project success—it holds everyone accountable. We’re prepare them to be the best people managers, partners seeing a trend toward these collaborative delivery and client managers, Hiscoe explains. methods. Owners did a lot of hard-bid projects during The contractor recently renovated its New York City the recession, and now they’re moving toward more o ce and is starting to renovate its Boston headquar- collaborative approaches. IPD is about as collabora- ters to create highly collaborative workspaces that 500 tive as you can get,” Simoneau says. allow people to interact and learn from each other. Shawmut is delivering the o ce renovation as an IPD Projects Shawmut is implementing lean principles in its completed by project teams and evaluating all of its internal pro- project as well, further illustrating its investment in a Shawmut last cesses, looking for ways to be more e cient. It’s also collaborative approach. year. moving to cloud-based, collaborative software with “From the folks we hire to our o ce space, train- completely digital files maintained in a digital library. ing programs and how we solve problems and partner 100 Tradespeople can view up-to-the-minute drawings on with our customers—every step has to be thoughtful an iPad on the jobsite, encouraging more interaction and focused on this goal,” Hiscoe says. “If a client came Percent employee-owned with the architects, who do not need to be on site to to us and needed us to start eight projects tomorrow in firm. Ⅲ communicate with team members. dierent areas of country, we could do that.” SHAWMUT OF PHOTOS COURTESY

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PHOTO COURTESY OF KBR H 30-year industry veteran andnowABC’s veteran 30-year industry vicepresident projects. colleagues andthejobenjoyed completing with workers satisfaction says expressed construction TINYpulse thegovernment andnonprofit sectors. after just cameinlast, manufacturing third, respectively; andsoftware wereranked in technology secondand employeesandthoseworking andservices products Consumer surveyed. way the led industries 12 among professionals craft white-collar workers, construction tion that analyzesemployeehappiness.Far aheadof byTINYpulse, conducted satisfaction anorganiza- ranked ofjob inaFebruary first the industry survey somuch sothat people whoworkinconstruction, freeing andrelaxingat thesametime.” I’m makingrightthen,” “Soit’s explains. Thomas very is that I’m notthinkingaboutanything theweld except professionaloftheyear. itscraft named Thomas tor. In March, BuildersandContractors theAssociated a pipinggeneralweldinginspec- foremanandcertified Since then,shehasrisenthroughtheranks tobecome inHouston. firmheadquartered global construction and in2009washiredasawelder’s helperbyKBR,a onthetask at exclusively hand. out theworldandfocus toblock skiers, golfers anopportunity andfly-casters, the feeling of peace and concentration described by Still, itwasarequirement,sosheplunged in. the requiredcourseswaswelding,andshedreadedit. at of alocalcommunity last college. The ics curriculum enr.com of jobsatisfactionamong12industrygroups New workplacesurveyshowsconstructiontradespeoplereport thehighestlevels Happy WithTheir Jobs Construction Employees The findings come as no surprise to Greg Sizemore, a findingscome asnosurprisetoGregSizemore,a The Taking pleasureinone’s iscommonamong craft “Probably thingIlike whenI’m thebiggest welding washooked. Shetookmoreweldingclasses Thomas She lovedit.Whilemakingaweld,sheexperienced INDUSTRY TRENDSⅢ an automotive manufacturing androbot- an automotivemanufacturing Double Springs, Ala., she decided to try in home Back do. to something needed not gone asplanned,andHolley Thomas er freshmanyearat Mississippi State had WORKFORCE ISSUES WORKFORCE 05072015090107 on winningaRampickupafterbeing namedABC’s craftprofessional oftheyear. NEW WHEELS then.” then.” making right weld I’m except the anything about thinking ... I’mnot welding When I’m — HolleyThomas, Stuart Bradie,KBRpresident andCEO,congratulatesHolley Thomas KBR BY SCOTTDAILEY decades to come.” to decades for last to going that’s something built of having tion day. Thesatisfac- every challenges on dierent taking and environment ateam in involved being to faction More there’s broadly, asatis- sta. for their attractive more employment pay, and making benefits creasing in- We it’s ofview, lot a offirms a worker’s see market. play,” at point alabor “From couple of factors he says. a are there “I think of America. Contractors General Associated for the of communications director mail, tion alongthat samepath.” genera- aremorethanwillingtohelpthenext so they traveledthe careerpath are, they towherethey toget up throughtheindustry. professionalsremember Craft come inhelpersasthey invest theirtimeandenergy helpers workingwiththemaremorethanwillingto Sizemore says. professionalsthat “Craft have good ment. workers take “Construction careofoneanother,” of environment, andworkforcedevelop- health,safety May 2015 May That rings true for Thomas. She says, “The greatest greatest Shesays, ringstrueforThomas. “The That Tur- Brian says play arole, also forces Economic Ⅵ ENR Contractor Business Quarterly Business Contractor CBQ9 $0 INDUSTRY TRENDS Ⅲ WORKFORCE ISSUES

TOOL TIME James Balius Jr. of Eustis, Fla., competes in the ﬁre sprinkler portion of ABC’s national craft championships on March 5.

TRADING UP Mike thing is to go back to the parking lot each day and say, more, stick around, want to be there. They’ll feel ap- Bradley of Iowa ‘There’s something I helped to build. My weld is in that preciated. There’s a lot of trades where you talk to the Insulation installs a protective place, and my weld is the only thing that’s holding that employees and the employer doesn’t give them raises, aluminum jacket up.’ When I first get to the site, it’s just dirt. Two years tries to keep their pay scale as low as possible,” Golder over 2-in.-thick later, when I leave, there’s this huge plant.” says. “And then I’ve also seen companies where they pay Styrofoam insulation on an Aaron Velasquez, an electrician with Anaheim, their employees, they pay for training, and they show outdoor duct Calif.-based Sunwest Electric Inc., says, “Taking pride the employees respect and appreciation. And you can at a feed mill in in your work, and being a builder of a city—it’s a great definitely tell a major dierence in the type of work they Hedrick, Iowa. experience.” For the past two years, Velasquez has been do and their appearance and just all-around. I think it working on a large addition to San Antonio Regional looks good for the company, and also the employees are Hospital in Upland, Calif. The future import of his happy that they’re being taken care of.” work fuels him with a strong sense of urgency. Darrell Bunting, president of Iowa Insulation, be- “One day, somebody’s life is going to be on that re- lieves in good pay, training and advancement and ceptacle, that emergency power that you’re installing,” recently created an employee stock ownership plan he says. “Or maybe a machine is going to be breathing (ESOP) for his people. for somebody who just got out of a car accident. Every- “The idea [of the ESOP] is to get more of our em- thing has to function correctly every single time. The ployees’ involvement in what they do, to take more of install has to be perfect.” an interest,” Bunting says. “It also helps … to get their opinions, to get their ideas … just more engagement, “One day, Upward Mobility and getting more of their ideas out there is what gets somebody’s That kind of commitment pays o in job advancement them really committed and involved.” life is going in an industry where people can build their skills, mas- Bunting is hardly alone in his views. Pat Lynch, pres- to be on that ter a craft and possibly own their own company. ident of consulting firm Business Alignment Strategies receptacle, “In this business, hard work really does show through Inc., says employers improve productivity when they that right away,” says Mike Bradley, a journeyman and me- enable sta members to voice their opinions about the emergency chanical insulation installer with Iowa Insulation in Ne- organization. It is also important for companies to fo- power vada, Iowa. He also teaches the company’s apprentices. cus on job growth for promising employees. The lack that you’re “If you work hard right away and do your job right the of career advancement was among the three biggest installing.” first time, especially in construction, people will take sources of employee dissatisfaction in the TINYpulse — Aaron Velasquez, Sunwest Electric Inc. notice instantly. And once people take notice, that first survey. The other two were unsupportive managers impression … you can only go forward from there.” and a lack of tools to get the job done. Drew Golder, a journeyman electrician with Tri-M “If you want to build a winning team,” says Bunting, Group, an electrical contractor in Kennett Square, Pa., “you really need good people, and you keep good people emphasizes training and career growth as the keys to by treating them well and by developing career paths employee satisfaction. “I know where I started, about for them and by having your finger on the pulse of five years ago. I didn’t know much of anything about where they want to be and how fast they want to move.” electrical, and looking back, how far I’ve come. I still For contractors, retaining good employees will have a ton to learn—and, year by year, I can see that … become even more challenging over the next five to I’ve come a long way. And that feels satisfying to know 10 years. U.S. Labor Dept. statistics project a 24.3% where you were and where you’re going,” he says. growth in the job market for construction laborers Golder also stresses the importance of compensa- between 2012 and 2022. That’s good news for people tion and investment in employees. “The reason why we entering the industry, but it also means company own- all work is because we need to pay bills … I think taking ers will need to work harder than ever to keep their Ⅲ care of [employees] will kind of push them to learn employees safe and satisfied. ABC OF (RIGHT) COURTESY INSULATION; OF IOWA PHOTOS: (LEFT) COURTESY

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PHOTO COURTESY OF JE DUNN from worsening. injury amuscle prevent can massage and therapy cold or heat Similarly, work. to return safely employee to the allow to enough be may abandage it with ering cov- and or abrasion cut aminor like wound a skin Cleaning aid. first with treated be it can if cordable” it’s not.”long is done as legally,” “Evasion she says. as “Avoidance permissible is taxes. paying not unlike is recordables to approach management injury sound a applying says Magnus workers. a ected for the care compromising without possible wherever recordables into incidents avoids turning that astrategy ment, manage- injury is she says, legal—approach, ter—and bet- Afar &Co. Magnus firm advisory construction Ala.-based Birmingham, of the principal Magnus, Teresa them,” says report to obligated is a contractor sifying incidentsorsimplynotrecordingthemat all. means—deliberately misclas- by unethical their TRIRs for comfort. high too deem managers or construction owners that a TRIR by undercut be availability—can quality, fer—price, of- can acontractor Theadvantages opportunities. for project new afirm’s candidacy or break make can e ectiveness program safety where environment tive acompeti- in particularly loomlarge, can tor’s TRIR incidents still occur. workers, its among awareness aheightened instill to e orts best acontractor’s But despite all. at happening recordable incidentrates Experts offer commonsense waystoimprove safetyprograms andlower Help LowerRecordables ManagementInjury Can enr.com W In such cases, the contractor has no regulatory obli- no regulatory has contractor the cases, such In “re- not considered is injury ajobsite For example, bylaw, defined specifically are recordables “Because haveSome contractors attempted lower toartificially on have acontrac- can incident an that The e ect PROJECT DELIVERY Ⅲ related injuries and illnesses from from illnesses and injuries related work- bypreventing is answer ous The obvi- (TRIR)? rate incident recordable alow total maintain and achieve to way best hat’s the JOBSITE SAFETY JOBSITE BY JIMPARSONS 05072015085419 for the contractor to establish its own nursing station station nursing own its establish to contractor for the is jobsites, more at remote particularly ment tactic, physicians. their interview and rectly di- facilities the contact to need may director safety firm’s the activity, construction less with areas In ful. help- be may contractors other and owners from rals refer- though areas, industrial in found easily usually may that ase ective.”derstand flushingtheeye bejust Magnus says. “An orclinicwillun- informeddoctor injurieswithtweezers,eye makingthemrecordable,” definitions. and rules OSHA in versed well (IH) clinics hygiene industrial 24-hour and cians physi- with relationships establishing recommends Magnus aid, first with injuries don’t rooms treat cy emergen- hospital most Because for treatment. taken be should workers injured where identifying cludes in- That management. injury to essential is aration recordables. its to incident the add to gation Another potentially cost-e ective injury manage- injury cost-e ective potentially Another are physicians and clinics IH that adds Magnus “An always room willalmost emergency treat certain prep- program, of asafety elements other with As May 2015 May Ⅵ ENR Contractor Business Quarterly Business Contractor culture. ingrained inits says safetyis The company briefings. onsite safety requires regular Construction JE Dunn DAILY MANTRA CBQ13 $0 PROJECT DELIVERY Ⅲ JOBSITE SAFETY

compensation,” she says. “OSHA regulations clearly LESSONS LEARNED ABOUT state that the employer is responsible for its workers’ LOWERING RECORDABLES safety. That means the subcontractor has a legal ob- Understand what injuries may be treatable using onsite first aid versus ligation and authority to control treatment of its em- emergency room care. ployees, regardless of who pays the worker compensa- Establish relationships with clinics and physicians that are well-versed in tion bill.” OSHA incident-reporting rules. In addition, contractors and subs can also obtain Ensure that all employees understand safety incident-reporting protocols insurance to protect themselves from employee acci- and procedures. dents that occur away from work. “They provide short- Be willing to experiment with potential safety improvement practices, term disability so the worker won’t be able to make a including those that may have only indirect benefits. false work-related claim,” Magnus says. Gain worker buy-in to the company safety culture through ongoing man- Prescriptive Practices agement commitment and support. Even if a contractor already has a low TRIR, there’s always room for improvement. For example, Scott Ritter, “You simply sta ed with people trained in first aid. safety manager for Columbus, Ohio-based commercial can’t fake “It’s also a good idea to hire site safety supervi- contractor Elford Inc., discovered that the highest per- a safety sors who are former military medics,” Magnus adds. centage of his firm’s recordable injuries involved hands culture.” “They’re experienced in treating injuries with first aid and soft tissue on the back and legs. — Jim Smith, CEO, in the field and getting the employee back to work. “For the hand injuries, we went out and bought all Elford Inc. And it’s a good opportunity to hire veterans as well.” the di erent types of gloves the workers needed be-

cause they cost much less than an injury,” Ritter says. Constant Contact “We also developed di erent protocols for which gloves As with every other aspect of safety, good communi- are used for di erent types of work, such as demolition cation is critical to injury management. Magnus says and framing.” every person in the company needs to be trained on Suspecting that the extensive use of various ladders the appropriate chain of command for safety incidents. might be contributing to soft-tissue injuries, Elford in- “Every incident has to be reported to the project su- vested in several platform ladders to give employees a pervisors and company safety leadership whether or larger, more stable base to work from. not it turns out to be recordable,” she says. Ritter notes that there’s no direct evidence that a Similarly, the contractor’s safety director must retain subsequent decrease in soft-tissue injuries is a direct control of the treatment by staying in touch with the result of the ladder switch, “but it had to have an im- employee to ensure that injury management treatment pact,” he says. He adds that the company has also de- has been successful. veloped a program of task-specific stretching and flex- “Once the employee leaves the site, the safety profes- ing exercises as another preventative measure. sional should check in with the individual to ensure Though pleased with the program’s success at that his or her condition is improving,” Magnus says. shrinking an already low TRIR, Elford CEO Jim Smith “If the condition worsens, and the employee wants to believes the program would not be as e ective without seek additional care, the safety professional must re- management setting the example to gain workers’ buy- main involved to manage the care.” in for adopting these practices and holding each other In addition, the employee should have a good con- accountable. tact number for the safety professional, who should be “You simply can’t fake a safety culture,” he says. on call 24 hours a day. While OSHA has established the distinctions be- “If the employee seeks treatment after hours, first tween what is and is not considered a recordable in- aid should still be the first course of action,” Magnus jury, contractors may still find themselves facing cir- says. “Should more extensive care be required, the inci- cumstances that defy conventional definitions. Several dent could eventually become recordable.” sources of guidance are available to help navigate these Magnus also notes that any subcontractor can make gray areas. injury management part of its safety program, even on For example, osha.gov provides interpretations of projects where owner- or contractor-controlled insur- workplace safety rules and responses to employers who ance is involved. request clarification of specific situations. Third-party “The subcontractor may feel it has no authority to safety consultants are also available to provide guid- implement injury management because someone else ance or manage some or all aspects of a contractor’s is paying for insurance, just as they do for workers’ safety program. Ⅲ

CBQ14 ENR Contractor Business Quarterly Ⅵ May 2015 enr.com

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Jobsite Photography Becoming a Skilled Trade Sophisticated documentation technology ensures that contractors and owners get the most out of their project photos BY JIM PARSONS

began a $25-million commercial construction project. “There was a lot of paper associated with the project,” Stadnik recalls, “but of all the things I paid for, no one had the capacity to show how that money was being spent in a real-time way.” Stadnik heard about MultiVista, a Vancouver, Brit- ish Columbia-based construction documentation start-up co-founded by former electrician Luis Pascual and materials engineer Graham Twigg. MultiVista o ered not only expert digital photography services specifically tailored for construction projects but also technology tools to store and organize the images and to facilitate immediate access across the project team. “What Luis and Graham o ered solved a number of problems with my project and avoided others,” Stadnik says. Stadnik was so impressed with MultiVista’s potential application to a variety of project types that he joined the company in 2007 as chief operating ocer. Headquartered in both Vancouver and Phoenix, Mul- tiVista now operates more than 50 franchises across the U.S., plus locations in Canada and the United Kingdom. All provide a variety of still and video documentation services to owners and contractors, including preconstruction site surveys, interior and exterior WORK IN ith the proliferation of easy-to-use progressions and finished surveys of projects ranging PROGRESS MultiVista’s cameras in smartphones and oth- from health care and education facilities to stadiums photo- er electronic devices, contractors and apartment buildings. Videography and streaming documentation can gather an almost unlimited webcam services are also available. captures interior W and exterior number of project images. “A contractor may take ... 50 photos over the course of progress and But more is not always better. If a problem arises a project, whereas we’ll take hundreds, all of which over- substantial during construction or after work is complete, how lap to ensure 100% coverage,” explains Ethan Gunnip, construction details at pre- can a contractor be sure it has the right photographs operations director for MultiVista’s Washington, D.C., determined to capture exactly what happened, and why? Photos oce. “The scope and frequency of what we shoot is all intervals. can be lost or forgotten if not shared immediately or dictated by the clients and what they want to see.” taken too late to be of much use, as is often the case Within 48 hours of each shoot, images are linked to after MEP systems are covered by drywall. a digitized site and floor plans in a cloud-hosted system Dave Stadnik recognized this need in 2003, when that Stadnik asserts has “bank-level security.” It allows

the Phoenix-based development company he founded team members to examine photos and collaborate from OF MULTIVISTA IMAGE COURTESY

CBQ16 ENR Contractor Business Quarterly Ⅵ May 2015 enr.com

(15B&%4BB7(&+LQGG $0 05072015092404 IMAGE COURTESY OF MULTIVISTA (15B&%4BB7(&+LQGG success as concrete and piping. project’s a to critical liverable—information—that’sas tion itself as a “trade,” providing a clearly organized de- trades.”other photo-documenta- sees Stadnik Indeed, the with coordination close in and schedule struction con- the in points exact at system every ceiling, every wall, every capture they site, On conditions. lighting various for adjusting to patterns shoot odology,from meth- our on them for,”“Wetrain look says. Stadnik and site supervisors. workers trade construction former are whom of many tions throughout the by project trained photographers, taken systematically from the same pre-identified loca- are images MultiVista’shigh-resolution of All tation. documen- photo “do-it-yourself” from MultiVista ate to $0.50 per sq ft over the life of the construction phase. $0.20 from range to tends services MulitVista’score of cost The system. the into uploaded be also can sources formance and research quality issues. Photos from other per- verify progress, monitor to them allowing project, the during location that for image every see can users plan, the in point specific a on clicking By location. any Anthony Bell, Turner Construction Co.’sTurner QAConstruction Bell, CMO Anthony whatknow it’s whatand to site a likeon be to “They dierenti- access and organization that says Stadnik to learn more. Visit bcsp.orgtolearnmore. supervisors to professionals—hire theproven andproud. culture byrequiring certifi ed safety practitioners from a successfulcorporate environment. Supportasafe work making experiencedand knowledgeable decisions creates Having the highest quality certificants in the safety profession Get Certified... Proven andProud! 05072015092404 the activity.” for there be can’t you if especially site, on happening what’s of sense make and collate to eort an have you “Now,Campus. Safety Public $243-million city’snew tent,” says who used MultiVistaChui, the to document dreds of photos but with no kind of organization or in- indexing. the in is documentation photo of power the that adds Francisco, of San county and for city the construction, says. he dispute,” a there’s when vantage ad- big a is which documentation, the of source ased unbi- an “They’re performed. been had work certain that claim subcontractor’s a disproved photographs free.” worry It’s pictures that are stored the take alongand out go they withand oursMultiVista, inwith onedinate place. coor- “We project. 1-million-sq-ft $4.5-billion, the for firm whose documentation as-built for Bell, MultiVista on says relying is time,” takes that and it do to sta cisco, agrees with the distinction. Transbaythe for manager TransitFran- San in Center “For any construction program, you might have hun- and design building manager, project Chui, Samuel Bell recalls a change-order issue in which MultiVista your need you photographs, own your do you “If Ⅲ E: [email protected] P: +1217-359-9263|F: +1217-359-0055 2301 W. BradleyAvenue, Champaign,IL61821USA Professional Since1969 Advancing theSafety, HealthandEnvironmental construction.com enr_web_editors@ send an e-mail to Newsletter ENR Future Tech To receive the TECH FUTURE ENR , $0 . 21,000 sq. ft. completed under budget

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IMAGES COURTESY YARD CLUB (TOP) AND GETABLE(BOTTOM) I showcase suppliersinthat thebest area to you.” you’re city, intoanew expanding wewant tobeable relationships withsuppliersinyourown region,butif rience indetail,” says Hyer. “You may alreadyhave good delivery, both sidesrate pickuptimes—welet the expe- “We peoplerate let thingslike responsetimes,on-time profilesofsupplierperformance. on buildingdetailed more focuses rate adeal.ButGetable eachotherafter asks renters andownersto other rentalapps,Getable businessrelationships.”tions inlong-standing Like worked butalsosetting connec- with before, upnew Hyer, CEO. haven’t Getable “Not tosuppliersthey just andsuppliers,” contractors between nections says Tim rentalfirms.“We toexisting contractors facilitate con- isanappdesigned tobetter connect tor deals.Getable keeping histories. usersuptodate onperformance matics data on equipment throughitstracker devices, on idlemachines.” EquipmentShare alsotracks tele- utilization andshowthey’re losingmoney their asset out,butwecananalyze don’t wanttorenttheirstu below thegoing rentalrates. “At somecustomers first, contractors.” Schlackssays theirpricesareusually30% for large point fairly pain a are costs “Rental notes, pricequotesandarrangeequipment, get rentals.He intheMidwest contractors list EquipmentShare lets brother Jabbok Schlacks.BasedinColumbia,Mo., his with EquipmentShare startup rental peer-to-peer save money,” says WillySchlacks,whoco-foundedthe online withfreemobile-basedequipment-rentalapps. aretakingthisinformaleconomy tious techstartups ambi- afew But afee. for out handshakeit lend to deals enr.com equipment through decentralized rental models. The ‘sharingeconomy’comestoconstruction,helpingcontractorsfindidle Rental AppsGainSteam Peer-to-Peer Equipment Not all rental apps focus oncontractor-to-contrac- Not allrentalappsfocus “It’s about helping the makecontractor and money ASSET MANAGEMENTⅢ often eat the cost of idle equipment or set up eat ofidleequipmentorset the cost often piecesofironorbigfirmswithmassivefleets few not putting it towork. Smallwithcontractors a from revenue in maintenancebutalsothelost money. equipmentcosts dle construction Not just DIGITALRENTALSEQUIPMENT 05112015134611 eciency and lower the cost ofownership?” andlower thecost eciency have toincrease theabilitycustomers toshareassets weasked us, on around why ourselves, our shouldn’t going all oftheadvances inpeer-to-peertechnology vision, seesitasanatural forthecompany. step “With formedanalyticsandinnovationdent foritsnewly di- own rentalbusiness.GregFoley, Caterpillar vicepresi- tegic financing toYard andwillusetheapp inits Club this isn’tarace tothebottom onprice,” hesays. wanthigh-qualityusers sofaristhat they equipment— feedbackfrom California.“Ourprimary pand beyond intheapptoday listed andareplanningtoex- assets says have they about$200 millioninheavy-equipment onthesite,”listed says ColinEvran, Yard CEO. Club He ment andhave onwhat pretty standards canbe strict join up.“We moreonheavy, focus equip- earthmoving they bers anteupsomeoftheirownironforrentbefore On May 7, Caterpillar announceditwillprovidestra- San Francisco-based Yard asksthat itsmem- Club BY JEFFRUBENSTONE May 2015 May Ⅵ ENR Contractor Business Quarterly Business Contractor Ⅲ TAP-TO-RENT contractors. owners orother demand from equipment on construction to rent idle allow contractors Getable (bottom) Club (top)and startups Yard Mobile appsfrom CBQ19

RESEARCH Ⅲ VIRTUAL BUILDING

Building Owners Find Greater Value in BIM New research says more owners are leveraging building information modeling for help with facilities management BY STEVE JONES AND DONNA LAQUIDARA-CARR

uilding owners are becoming more but also across the entire building life cycle. aware of the benefits that building in- This investment and commitment are reflected in formation modeling brings to their the study findings: U.K. owners are significantly more B construction projects, and to a lesser engaged in the use of BIM on their projects. They more extent, its value in the management and widely recognize its benefits and are far more likely to operation of their buildings. That’s one of the conclu- require its use, even on projects where it is not man- Steve Jones is sions supported by a recent Dodge Data & Analytics dated, than their U.S. counterparts. senior director of study about building owners’ perspectives on BIM However, even the findings from the U.S. alone dem- industry insights published in “The Business Value of BIM for Owners” onstrate that BIM’s potential to benefit the operations for Dodge Data & Analytics. He SmartMarket Report. phase of a building will help drive its use. Building own- oversees DD&A’s The SmartMarket Report, sponsored by Autodesk ers who say that they have at least a medium level of thought leadership, and Skanska, features data collected from building capability for leveraging BIM in facility management market research and SmartMarket owners in the U.S. and the U.K. The findings reveal (FM) report significantly higher engagement with BIM Report initiative. a strong contrast between these countries, largely overall and a higher recognition of its benefits, and they because the U.K. government announced in 2011 it are more likely to require BIM on their projects. would mandate BIM on central government-funded Contractors that wish to remain competitive, espe- projects beginning in 2016. cially in sectors involving complex buildings, can lever- This has generated enormous interest in and adop- age owners’ growing respect for BIM to improve their tion of BIM there. To support this eort, the U.K. BIM relationship with their clients.

Task Group has developed extensive standards and Donna guidelines and provided education on the implemen- Owner Engagement With BIM Laquidara-Carr tation of BIM. This eort extends to all players, in- On average, building owners in the U.S. with at least a is director of industry insights cluding owners, not just for design and construction, moderate ability to leverage BIM for facilities manage- for Dodge Data ment report that architects and contractors are using & Analytics. She BIM on a higher percentage of their current projects— has served as managing editor on OWNERS REQUIRING BIM ON THEIR PROJECTS on average, about 55%—than building owners with numerous Smart- less ability to leverage BIM for FM, with an average of Market Reports 37% of projects involving BIM. covering diverse industry trends. While this is not necessarily an objective measure of the degree to which BIM is actually being used on projects, it clearly indicates that owners who can leverage BIM in their FM plans are at least more widely aware of BIM use on their projects. In addition, a signiﬁcantly higher percentage of own- 17% 41% ers who can leverage BIM for FM actually own BIM software (81% compared with 49% of those with less ability Owners With No/Low Owners With Medium/High Capability for Leveraging Capability for Leveraging to leverage BIM), and they are also more than twice as BIM for Facility Management BIM for Facility Management likely to use it if they own it, according to the ﬁndings.

enr.com May 2015 Ⅵ ENR Contractor Business Quarterly CBQ21

(15B&%4BB5HVHDUFKLQGG 30 05112015163303 RESEARCH Ⅲ VIRTUAL BUILDING

OWNERS WHO SEE THE BENEFITS OF BIM

Medium/High Capability to Leverage BIM for Facility Management cases, it is likely that owners may be more capable of No/Low Capability to Leverage BIM for Facility Management leveraging BIM in FM because they have strict guidelines in place for their design and construction team Use of BIM has a beneficial 66% impact on control of to help them do so. construction costs 33% Benefits of BIM Use BIM analysis and simulation 66% This higher level of BIM engagement may also en- capabilities produce a more well-rounded design 43% able owners who can leverage BIM for FM to be more aware of the benefits of using BIM for design and con- There are fewer problems struction. In fact, two-thirds (66%) find that BIM re- during construction related to 62% design errors, coordination duces construction costs. That’s double the percentage issues or construction errors 49% of those with fewer capabilities to leverage BIM for FM (33%). Use of BIM has a beneficial 62% A significantly higher percentage also finds that impact on project schedule 42% BIM reduces their construction schedule and provides them with a more well-rounded design. And while the dierence is not statistically significant, a notably higher percentage (62%) who can leverage BIM for FM see However, it is notable that only 38% of those who that BIM reduces problems during construction, com- can leverage BIM for FM actually do use the software, pared with the 49% who have less capability for that. % suggesting that they are finding other ways to extract 66 data from the model for their building operations. Owners Who Require BIM

Of owners with The most telling finding—the one which demon- Given the greater awareness of BIM’s benefits, it’s not a medium/high strates that owners who can leverage BIM for FM are surprising that 41% of the owners who can leverage capability to leverage BIM for generally more engaged with BIM—is the high per- BIM for FM require it on their projects, compared FM say that BIM centage (62%) who report they have well-developed with just 17% who cannot. Not only are they capable cuts construction costs. guidelines for BIM. That’s much higher than the 35% of drawing value from BIM throughout the project life % of those who are less capable of leveraging BIM for FM. cycle, but their greater knowledge and engagement 62 This finding is important because it suggests that with BIM also allows them to perceive more clearly its these owners recognize the need to guide the industry benefits during construction. Of owners with to ensure that the final model contains the informa- One last finding demonstrates the longer-term im- a medium/high capability to tion they need. For an owner to best take advantage of plications of this trend: Nearly all U.S. owners (90%) leverage BIM BIM for FM, architects and contractors must create believe that by 2019, BIM will oer at least moder- for FM have well-developed models with that goal in mind, as well as the needs of ate value for the operation of buildings, a dramatic BIM guidelines. the design and construction process. In fact, in some growth over the 61% who believe it currently does. This strongly suggests that owners expect BIM tools to improve enough to extract more value across the life of the building from models created during design and PERCEIVED VALUE OF BIM IN FACILITY MANAGEMENT construction. No/low capability Medium/high capability All owners to leverage BIM to leverage BIM If that expectation holds true, then contractors can for facility management for facility management expect to see a significant growth in the number of owners with specific BIM guidelines and growth in the number of owners who will require BIM use on their 15% 9% 38% projects. This trend oers an opportunity for contractors who can proactively demonstrate their knowledge of BIM to potential clients. However, knowledge of how to improve construction processes may not be enough to truly gain a com- 52% 43% 72% petitive edge. Instead, construction companies can work with owners to create models that have value throughout the building life cycle. Those firms may be the ones that build the strongest and most lasting re- Owners who currently believe BIM is valuable for facility management lationships with clients, creating repeat business and Owners who believe BIM will be valuable for facility management in the next 5 years distinguishing themselves from their competitors. Ⅲ

CBQ22 ENR Contractor Business Quarterly Ⅵ May 2015 enr.com

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ENR_0813_9252.pgs 08.06.2013 12:38 INDUSTRY DATA Ⅲ FACTS & FIGURES The Numbers A compilation of key data from targeted segments of the industry

REGIONAL FOCUS Where Is the Growth in Construction Starts? EQUIPMENT RENTAL RATES Steady Recovery (Rental rates relative to January 2011) NE MW S W 1.3

$20B $18B $81B $28B 1.2 $18B $18B $51B $27B +10% 0% +58% 1%

Ⅲ Q1 2015 Ⅲ Q1 2014 1.1

NORTHEAST SPOTLIGHT Top Metro Areas for 2015 Q1 ($ Mil.) METROPOLITAN AREA NON-RESIDENTIAL RESIDENTIAL NON-BUILDING ANNUAL 1.0 New York-Northern NJ, NY-NJ-PA $3,694 $4,342 $2,372 $10,408 Boston, MA-NH $952 $1,087 $643 $2,682 0.9 Philadelphia, PA-NJ-DE-MD $380 $450 $415 $1,245 JAN 11 JUL 11 JAN 13 JUL 12 JAN 13 JUL 13 JAN 14 JUL 14 JAN15

Pittsburgh, PA $160 $320 $157 $636 SOURCE: ROUSE ANALYTICS; ROUSE RATE INDEX, ALL CATEGORIES New Haven, CT $448 $22 $25 $494 FUEL PRICES What Am I Paying at the Pump? Bridgeport-Stamford-Norwalk, CT $233 $215 $35 $483 QDiesel QGas Hartford, CT $269 $56 $61 $386 $4 Albany, NY $119 $48 $89 $256 $2.81 $3 Buffalo, NY $134 $69 $46 $249

Providence, RI-MA $41 $72 $118 $231 $2 NORTHEAST INCLUDES: CT, MA, ME, NH, NJ, NY, PA, RI, VT $2.57 $1

TOP NORTHEAST OWNERS Commercial Construction in Q1 2015 $0 JAN FEB MAR APR

SOURCE: U.S. ENERGY INFORMATION ADMINISTRATION. WEEKLY RETAIL PRICE $298B FOR REGULAR GASOLINE AND ON-HIGHWAY DIESEL. $306 $400B B MISC. OFFICE DORMITORIES NONRESIDENTIAL HOT SECTORS: YANKEES AHEAD $13B HOUSING: Dodge Data & Analytics reports that the EDUCATION Northeastern region of the United States posted a healthy 10% increase in construction starts value in the ﬁrst quarter of 2015. This growth was driven by the states of New York and Massachusetts, which saw increases of 24% and Oxford Properties Yale New York City Transit 43%, respectively. Expansion in both the public works Group Inc. University Authority and residential multifamily markets drove most of the

SOURCE: DODGE DATA & ANALYTICS Massachusetts expansion.

ENR CONSTRUCTION STOCK INDEX How Are Construction Stocks Performing?

3% 1% 0% -1% -3% -5% -7% -9% ■ S&P Super Composite 1500 Index -11% ■ ENR Construction and Engineering Index -13% J F M A

CBQ24 ENR Contractor Business Quarterly Ⅵ May 2015 enr.com

(15B&%4B1XPEHUVLQGG 30 05072015144907 VIEWPOINT Ⅲ CONSTRUCTION FINANCE

Alternative Funding Sources For Construction Projects

BY EVAN SINGER online providers, that may be the best option. Before “The DESPITE THE UPTICK in construc- applying though, check with your bank and make sure company tion, many firms are feeling ham- your company is asking for an allowable use of funds. must specify strung by the hesitancy of tradition- The company must specify exactly how loan proceeds exactly al banks to provide growth capital. will be used in order to pass banking guidelines. how loan Unfortunately for smaller players The loan also has to be demonstrably repayable. Man- proceeds in construction, the small business agement must provide documentation showing that will be used lending process is not working well, with banks often the business has an ability to repay the loan. Typically, in order to reluctant to lend to smaller firms and oering high- past business and personal tax returns as well as a busi- pass banking rate and fee-laden business credit cards. ness and personal debt schedule are used as evidence of guidelines.” Some Small Business Administration loans are repayment ability. A newly formed construction busi- available, but they can be cumbersome to obtain, with ness will also likely need to provide a financial and busi- many banks preferring not to oer SBA loans of less ness plan that projects the business’ future cash flow. than $350,000. Fortunately, new online SBA options Construction firms applying for SBA loans should do exist. If you apply for some of these or other new understand the importance of accurate and updated online options—whether at a bank or through an alter- paperwork, including documents relating to insur- native lender—construction firms should follow sever- ance, taxes and the structure of the business. The al tips to find the capital they need at a reasonable cost. management applying for the loan will also need to • Maintain a good credit score. Good personal and demonstrate a positive tenure in the construction busi- business credit scores will help you qualify for reason- ness so the lender can see the firm or the project has ably priced financing options. However, if the con- the greatest possible odds of success. struction firm’s owner has a history of bankruptcies or • Consider peer-to-peer lenders. If your business can’t charge-os, or if the business does not have a strong qualify for an SBA loan, then construction firms may credit history, that can hurt the firm’s ability to secure want to look to marketplace-lending options. These a low-priced loan. Business credit can be improved by lenders oer business term loans and lines of credit as creating a Data Universal Numbering System (DUNS) well. With rates typically at 10% to 20%, these loans number and providing Dun & Bradstreet with past can be a good alternative if you don’t mind the higher payment information and vendors. interest. Additionally, just as you monitor your suppliers’ and • Choose cash advance lenders as a last resort. Beware vendors’ credit ratings, your customers can monitor of expensive cash advance loans. Construction manag- yours. You might lose business without knowing it. ers considering such financing should carefully weigh Evan Singer has extensive experi- Also, commercial credit fraud is increasing, and you the risks and rewards. For example, if capital is bor- ence in financial need to keep track of your business credit report for rowed from a cash advance lender, ideally it should be services and con- any transactions you did not initiate. just a one-time infusion that helps complete a lucrative, sumer industries. He is the general • Look at an SBA loan first. The Small Business Admin- nearly finished project. Similarly, if you’re trying to grow manager for Smart- istration is an agency that supports entrepreneurs and your business, a credit card is usually not the right way Biz, the small small businesses. SBA loans are made through banks, to go, as the rates are a lot higher than other options. business division of Better Finance, credit unions and other lenders who partner with the Another drawback to using a credit card is the high a venture-backed, SBA. annual fees, fees for late payments or fees for being over technology-based SBA loans have some of the lowest interest rates, the borrowing limit. If you do need a credit card, be finance company. For more informa- longest terms and lowest monthly payments in the sure to read the terms and conditions on the credit card tion, visit smartbi- industry. If you can secure an SBA loan quickly from agreement carefully so you’re aware of all the costs. Ⅲ zloans.com.

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