Search

Building A Dream Business

What is Your Mission and Why Does it Matter?

by

It’s the Most Important Thing to Turning Your Dreams into Reality

I’m currently going through Business Made Simple University’s online course Mission Statement Made Simple. I’ve gone through this course before but,

I don’t think you can ever be too clear about your mission.

This time I’m going through it with a mastermind friend. This gives us both the opportunity to get outside perspectives. Alternate viewpoints are a huge help to getting the mission honed to laser clarity.

A clear mission is what gives you clarity of direction and purpose. It is the filter that all your business decisions should be ran through.

A mission is a clear direction for overcoming a conflict that is causing havoc in the world.

Over the past several weeks I’ve had numerous conversations with people struggling with clarity. I know how difficult and overwhelming this uncertainty can be.

As entrepreneurs, the responsibility of having a clear mission rests on our shoulders…should we do this or should we do that? When we’re employed by someone else, we just show up and do what we’re told.

This is why in most cases there’s so much discontent of employees working in large companies…there’s no clear mission.

Without a clear mission we just wander through life with no purpose.

How do you determine what your mission is?

This seems to be the most difficult question and one in which the answer continues to be refined every day. We are all given natural abilities and things we are drawn to. For example, I have no skills or desires to be a brain surgeon, a dentist or a teacher and trust me you’re better off because I’m not.

One thing that is a determining factor if you’re fulfilling your mission is if you love what you do.

Do you look forward everyday to getting to work and have to force yourself to stop at the end of the day. Granted there are varying degrees of this based on different personalities, but if you don’t love what you do…it’s not in alignment with your purpose.

I think there is a specific core purpose that goes beyond our vocation. I think this core purpose can be put to use in different businesses or ministries.

My purpose is to help people find solutions for building their dream business, construction project and life. With this foundational purpose my mission can change over time.

I love what I do and can’t imagine doing anything else.

Whether it’s my current mission to help construction companies struggling with a lack of business knowledge and customers who don’t understand or know what to expect from the construction process. Helping both accomplish their dreams, by providing businesses with systems and training to make their companies more efficient and profitable while educating customers in what to expect throughout the entire construction process.

Or my future mission with a NASCAR team. 😊 This is me turning my dreams into reality.

The important thing is to know yourself, search your heart and be connected to your Maker. The more you do this, the clearer the picture becomes. Having a clear mission moves your dreams towards reality.

Over the next few weeks, as we go through the rest of Mission Statement Made Simple, I’ll share other aspects of having a clear mission, i.e., key characteristics needed, critical actions taken by people in alignment with the mission and how to clearly share your mission with others.

Benefits to a Construction Proposal That We Haven’t Even Talked About Yet

by

An Overview of the Blueprint for Building a Better Proposal System

This past week John used the Blueprint for Building a Better Proposal system to do a couple of proposals. Just like when he’d learned to build a house, he had some questions.

As John smelled the pizza setting in the passenger seat, it reminded him of his first meeting with Gene. It’s hard to believe that today’s meeting was going to be the 8th time they’d met to learn this proposal system.

As they are eating some pizza, Gene asks John if he had used the proposal system this past week. John said he had. Gene asked what questions he had.

In between bites John said, “The project I was doing the proposal for was a small repair project to a deck that was settling and pulling away from the house. As I put in the numbers for digging a couple of holes, filling them with concrete and setting some posts…the price didn’t seem to be enough for the work that would be needed.”

Cartoon man looking up at large question mark

“Great question.” said Gene. “Sometimes a specific task is small or more difficult than normal. This will be determined once the quantity is entered and the price is deemed too low.

To adjust this, insert an additional row in the spreadsheet, below the row with the low price. Fill down the content from the row with the low price to the new row. Then in the description cell of the new row write small and in the quantity cell put in an amount that will adjust the price as needed for the time to do the small task. Usually the material price can be removed from the second row, due to the small task not requiring additional material. This will depend on what the specific task is. (See the highlighted cells in the example below)

If the low price is due to the task being more difficult, instead of, or in addition to being small, you will use the same procedure listed above. An example of this would be a small concrete project in the back yard where a concrete truck couldn’t get to the construction area and the concrete was going to be moved with a skid loader.

If you remember early in the process, we talked about the common mistakes that contractors make when bidding projects and one of those that this system solves is…

A construction proposal system that is customizable.

This leads to some of the other benefits this proposal system offers that we’ve only discussed in passing. These include, but aren’t limited to, a Scope of Work, a Production Budget and accurate progress payments.

A Scope of Work is important so that production crews and subcontractors know what’s included in the project and what’s not. This prevents the subcontractor/employee from doing more or less than was expected – if too much work is done there will be cost overruns, if everything the customer expects is not done then the customer is unhappy.

A Scope of Work is easy to do. It is simply saving a copy of the proposal and removing the customer’s prices for each item and the totals at the bottom of the page. Making a couple of simple changes to the document title and removing the signature lines.

That easily you have a Scope of Work

Preparing a Production Budget that can be shared takes a little more work. It involves the transferring of numbers from the Worksheet to a separate Production Budget template. The numbers that get transferred are generated automatically when the Worksheet is prepared.

We’ll wait to get into the payment application until later. For now, you just need to use the system for a while and get familiar with it.

This whole system comes down a clear description of what work the project includes or doesn’t and a consistent and accurate process for pricing.

This proposal system is the foundation for building a profitable business.”

Previous posts in this series –

What is “business clarity” and how do you find it?

Learning How to Get a Construction Project Started Out Right

It’s Time for the First Meeting

Being Aware of the Common Bid Mistakes is the Best Way to Avoid Them

Constructing a Building is Better with a Plan, a Proposal is No Different

A Good Construction Proposal Starts by Asking the Right Questions

What is a Construction Scope of Work and Why Do You Need One?

Dollars and Cents Are What Make a Construction Project Profitable…or NOT

The Final Step to Completing a Professional Construction Proposal

The Final Step to Completing a Professional Construction Proposal

by

It’s as Rewarding as Seeing a Construction Project Completed

As John is driving to his weekly Saturday training with Gene, he remembers how hard it was in the beginning to convince himself to take the time to learn this system and how glad he was that he did. He thinks back over what he’s learned over the past several weeks:

John’s getting excited as he pulls up to the XYZ Construction Company office. Today they are going to put all the pieces together, creating a finished proposal.

After Gene and John have some lunch and get caught up on the past week’s events, Gene asks John, “You know how exciting it is when you build a new home from blueprint? That is what we’re going to do today…we’re going to be seeing…

A proposal taken from blueprint to reality.

Let’s get started.

The final step in preparing the Proposal is to transfer the information you have gathered from the customer and prepared on the Scope of Work and the Worksheet to the Proposal template.

Start out by opening a Proposal template in the Blueprint for Building a Better Proposal system.

If you use a project number insert it behind the number sign at the top of the page, below the proposal title. Next insert the customer and project information in the open areas as it pertains to the project.

Insert your company name at the beginning of the introductory sentence.

Copy and paste the description of the work to be performed and material to be supplied from the Scope of Work in the body of the Proposal template.

Next, take the prices from the Worksheet for each individual task described on the Proposal and place it on the right side of the page. At the end of each section put the total price for that section. This allows the customer to see a price for each section, i.e. foundation, framing, roofing, etc.

Now that the description of the work to be performed, the materials to be used, the prices for each task, and the subtotals of each section have been placed on the Proposal, it’s time for the project subtotal to be inserted at the bottom. Insert a separate price for the sales tax below the subtotal. Sales tax rates will be determined by the location where the work is to be performed.

Now insert the project total after, “For the Sum Of:” on the Proposal both in written and numerical forms, this duplication (just like on a check) helps with clarity.

Now that you have a project total you need to determine how payments will be made. There are several different factors which can determine how this will be done, i.e. the size of the project, when material will be ordered and/or paid for, the financing of the project, your personal preferences, etc. This could be done at the completion of set production tasks, scheduled times (weekly, monthly, etc.) or when the project is finished.

Determining the date in which the Proposal will expire will be up to you. If the Proposal includes some materials that fluctuate in price often then you may want the expiration date to be sooner. A standard time frame is 30 days.

The duration of time to complete the project can be determined from the Worksheet. At the bottom of the Worksheet there are four cells, with corresponding amounts for each.

The Labor Price is the total amount of labor costfor the project. The Hours, is the total man hours needed for the project, dividing the hours by $60/hr. This hourly rate can be adjusted to whatever dollar amount you determine. The Days are the total hours divided by 7 hours of production per day. The Weeks are total working days divided by 5 days of production per week. You then have the number of working days needed to complete the project. This will then be entered into the corresponding blank space on the Proposal.

You now have completed the proposal

At this point I recommend going back through and proofreading the scope of work for each task, checking the math to make sure that the prices on the Proposal add up correctly. Don’t be surprised if a few of the numbers on the Worksheet totals are off a cent or two from the total on the Proposal. This happens sometimes due the combinations of formulas on the spreadsheet. The most important thing is that the prices on the Proposal add up correctly.

Now sign the proposal and deliver it to the customer.”

Gene looks over at John and asks, “Well what do you think?”

John smiles and says, “You’re right. It does feel like seeing a house where there wasn’t one before. It’s very satisfying.”

“Know this John, it’s also going to be similar to building the first house. You’re going to have questions, when you start using the proposal system. Start using it and let me know when you have questions. It will be tempting to go back to doing bids like you used to, but don’t.”

“Next week we’ll review and spend our time answering questions.

“Now go use this system and build better proposals.”

Previous posts in this series –

What is “business clarity” and how do you find it?

Learning How to Get a Construction Project Started Out Right

It’s Time for the First Meeting

Being Aware of the Common Bid Mistakes is the Best Way to Avoid Them

Constructing a Building is Better with a Plan, a Proposal is No Different

A Good Construction Proposal Starts by Asking the Right Questions

What is a Construction Scope of Work and Why Do You Need One?

Dollars and Cents Are What Make a Construction Project Profitable…or NOT

Dollars and Cents Are What Make a Construction Project Profitable…or NOT

by

Having a System for Proposals, Is Better Than Just Guessing

It’s week six of learning the Blueprint for Building a Better Proposal system. As time consuming as learning new things is…John is beginning to see the benefits this proposal system will provide.

Just like building a house using a system that repeats routine actions prevents time being spent rethinking and guessing at how to do things. This system will do the same thing when preparing proposals.

As they settle in and begin the meeting, Gene tells John, “Let’s take a quick look back at what we’ve covered so far. We started by asking ourselves some foundational questions. Next, we discussed the common mistakes contractors make when bidding. Then we went over the system and it’s parts. The last couple of weeks we’ve worked on gathering information and turning that info into a Scope of Work. Today we’re going to start working on…

Pricing the Project

In this step we will determine the price for the project. Communicating a clear description of the project took place in the Scope of Work which is important in avoiding misunderstandings. Accurate pricing is equally as important.

Poor communication will cause heartache, poor pricing will cost you money.

Open the Worksheet template. This blank Worksheet is where you will paste the information from the Data Base as it relates to each of the specific tasks of the project.

The Worksheet template has six different options for overhead and profit ranging from 20% overhead and 10% profit to 40% overhead and 20% profit. You can use whichever of the six options works best for you on the specific project you’re working on.

Typically, larger projects, i.e. new construction, large renovations, remodels or large additions will use smaller percentages, while small projects will use bigger ones. You can use whichever works best for you. These percentages can be adjusted after you have finished the pricing if you want them to be increased or decreased. These documents can be modified with custom percentages as well.

Open the Data Base and prepare to copy the appropriate content into the correlating cells of the Worksheet of the project you are working on. Use the previously written Scope of Work, to determine which of the categories, specific to the project need to be used from the Data Base and copied to the Worksheet.

If more than one item for a specific task is needed, for example shingles, synthetic underlayment and metal edging, flashings. These individual items will be entered separately then added together to create one price for roofing.

You can add as many additional rows as you need, just be careful to keep the formulas intact by filling the content of the existing row to the new ones.

How to determine which tasks should be inserted into the Worksheet

Most of the tasks on the Data Base have options; determining which to use, will depend on the specifics of the project. For example, how is the excavation, trenching and landscaping going to be done…with a skid loader, mini excavator or by hand?

Once it’s determined which methods, actions or materials are to be used for a specific project, copy the pertinent cells from the Data Base and paste them to the Worksheet.

After the pertinent information from the Data Base has been placed on the Worksheet it’s time to…

Enter the quantities of the work to be done.

Fill in the quantity needed to do the work for each item on the Worksheet. This may be lineal feet, square feet, square yards, cubic feet, cubic yards or numbers of pieces. Once this is completed for all the categories, you’ll have prices for each task of the Proposal.

This system offers a constant repeatable process for preparing accurate proposals and is the difference between making money or losing money on construction projects.”

Gene looks at John and asks, “Well, what do you think?”

“Well, I thought my head was spinning before today. Now I’m getting dizzy.”, replied John with a grin.

“I know it seems like a lot, but it really isn’t, once you get started using it.” Says Gene reassuringly. “Experiment with it this week. Call if you have any questions. Next week we’ll bring everything you’ve learned together into a proposal ready to be presented to the customer.”

Guessing is not a good way to build a profitable business.

Previous posts in this series –

What is “business clarity” and how do you find it?

Learning How to Get a Construction Project Started Out Right

It’s Time for the First Meeting

Being Aware of the Common Bid Mistakes is the Best Way to Avoid Them

Constructing a Building is Better with a Plan, a Proposal is No Different

A Good Construction Proposal Starts by Asking the Right Questions

What is a Construction Scope of Work and Why Do You Need One?

What is a Construction Scope of Work and Why Do You Need One?

by

Because It’s Critical to Clear Communication, Whether You’re the Contractor or the Customer.

Last week Gene explained to John what project information needed to be gathered…

  • Project info (customer name, mailing address, project address if different than mailing, phone number, email address, project overview, budget, project deadline, any other relevant information that you need)
  • Measurements and dimensions, existing and new
  • Building materials, existing and new
  • Pictures of pertinent areas and existing construction
  • Customer’s design ideas and finishes

Overlooking or forgetting something is a sure way to lose money when doing a construction project.

This week they’re going to take the information gathered and turn it in to a scope of work. This will be the foundational form of communication between everyone involved in the process, i.e., customer, contractor, sub-contractors, employees, etc.

As they get started this week’s meeting Gene asks John if he had an opportunity to use the Bid Sheet this past week and if so, how it worked.

“Yes.” said John. “It was a little awkward in the beginning. By the time I was finished gathering the project information I was glad I had it, because there were a couple of things that it reminded me to do.”

Gene replied, “That’s great. Do you have any questions?” Not yet.” said John. Gene smiled, “You will before we’re done.”

Okay. Did you bring it with you? Asked Gene. “I did.” said John, “I’ve got it on my laptop.” Gene told him to open it up and follow along. “Today we’re going to work on the most important part of communication between contractor and customer.

The Scope of Work

What is a Scope of Work?

A Scope of Work clearly defines and explains the work to be done. It should describe what is included in each specific task in terminology that both the customer and the contractor understand. A scope of work describes the work to be done on a project, who is responsible for completing the work, how the work must be performed (techniques used), and what materials will be used. It helps in the smooth operation of a project, minimizing situations leading to disputes. It is the first step to building a mutually beneficial relationship between a contractor and customer.

Communication with the customer needs be simple and direct while explaining clearly and thoroughly.

After having gathered the information needed for the project using the Bid Sheet, write out in a few sentences, or less, of what each specific task is going to consist of. Explaining what you’re going to do in a way that a person with little or no construction knowledge can understand. Include as much detail and specifics as is needed to be clear on what is or is not included as a part of the project.

Once this process has been finished for each task included in the project, you have a Scope of Work ready to be transferred to a blank Proposal template.

Here’s an example of a Scope of Work using the information from the Bid Sheet we worked on last week.”

As they’re wrapping up this week’s training Gene tells John. “Next week we’ll get into the pricing of a project.”

The real value of this Proposal System is in the pricing.

Previous posts in this series –

What is “business clarity” and how do you find it?

Learning How to Get a Construction Project Started Out Right

It’s Time for the First Meeting

Being Aware of the Common Bid Mistakes is the Best Way to Avoid Them

Constructing a Building is Better with a Plan, a Proposal is No Different

A Good Construction Proposal Starts by Asking the Right Questions

A Good Construction Proposal Starts by Asking the Right Questions

by

This Proposal System Helps You to Not Overlook Things You Need to Know

Another week has gone by and John’s looking forward to today’s meeting. As they wrapped up last week’s meeting, Gene indicated that they will “actually” learn the first step in the proposal system today.

As John goes into XYZ Construction Company’s conference room Gene is sitting at his computer with a Power Point on the big TV ready to go. “Good afternoon Gene, are you ready to get started learning the first step for doing better proposals?”

“I’ve been looking forward to it all week long.” says John.

“Okay. There’s oriental takeout there on the counter. Fill a plate and let’s get started.”

As they fill their plates, Gene asks John,

“When you begin talking with a new customer, what’s the first thing you ask?”

John ponders the question as he sets down. “I ask them about their construction project. What is the work they want done? For example, are they wanting to add on a room addition or remodel the kitchen or do they want to replace the windows? You know…

“WHAT is it they want done.”

“This is the typical question asked by most contractors. Without a doubt it’s a question that has to be asked. But, there’s another question that helps you serve your customer better and achieve their construction dream.

The most important question is WHY.

Why does the customer want to do this project? Do they need more space, does something need repaired or replaced, are they looking to make an area more usable, or is it just because they want to? Learning their why early helps determine a clear direction of ’the what’.

As the construction professional, it’s your job to guide the customer through this process. Most customers have very little if any experience doing construction projects. Often, they get ideas from DIY programs on TV or the internet, other people’s projects, etc. and they just want one of “those”, whatever that is.

Every project is as different as the customer. Without blueprints, specs or seeing the existing location the chances of giving the customer the project they want, is almost impossible. Unless they have a full set of blueprints and specifications to bid from, you need to gather the information for the specific project.”

The customer will have a vague image in their mind of what they want. It’s the contractor’s responsibility to guide them to the realization of that dream.

Information that needs to be gathered:

  • Project info (customer name, mailing address, project address if different than mailing, phone number, email address, project overview, budget, project deadline, any other relevant information that you need)
  • Measurements and dimensions, existing and new
  • Building materials, existing and new
  • Pictures of pertinent areas and existing construction
  • Customer’s design ideas and finishes

The important thing is to not overlook something.

“Use whatever way works best for you to gather the information. If you prefer to write on paper, print out a copy of the Bid Sheet template, it has a list of the different construction tasks that might be needed. Use the space next to each task for writing down a brief description, dimensions, specific notes, drawings, etc.

A pre-determined list minimizes the possibility of forgetting something.

If you prefer using an electronic device (tablet, smart phone or laptop) enter the information in the appropriate space on the Bid Sheet template.With most of the electronic devices now, you can either type, write or draw right on the device. Using the electronic form streamlines the process and reduces the chance of something getting overlooked. Be sure to keep a copy of the template for the project you are working on; this will leave a blank template for the next time.

Forgetting to include something in the proposal is a sure way to lose money.

There are over one hundred items listed on the Bid Sheet and it still doesn’t cover every possibility. Construction projects vary a lot. Even small projects can include a lot of different pieces. If you leave one of the pieces out, someone’s going to be disappointed.

If you start with a list, you’re less likely to overlook things.

Here’s an example of finding out the WHY:

When meeting with customer Jane Smith she explained that she wanted to add a laundry/sewing room to her house but didn’t know where to start or what it should include. We asked her WHY. We found that she loved to sew and did a lot of it. Currently she used the table in the main floor dining room for measuring and cutting and did the sewing on a machine in the basement. In addition to this her washer and dryer were in two separate closets in the master bathroom. Both situations were inconvenient for her.

Finding out her why helped us to present solutions for building her dream.

Here’s an example of the information gathered on the Bid Sheet:”

“If you’re serious about doing better proposals and haven’t bought your Blueprint for Building a Better Proposal system yet, I would suggest that you get that done. Then you could use the Bid Sheet this week when you meet with someone wanting a proposal. Bring it with you and we’ll go through it and answer your questions.

Next week we’ll take the information from the Bid Sheet and prepare a Scope of Work for Jane Smith’s project.”

Previous posts in this series –

What is “business clarity” and how do you find it?

Learning How to Get a Construction Project Started Out Right

It’s Time for the First Meeting

Being Aware of the Common Bid Mistakes is the Best Way to Avoid Them

Constructing a Building is Better with a Plan, a Proposal is No Different

Constructing a Building is Better with a Plan, a Proposal is No Different

by

We’ve Discussed the Why, Now Let’s Work on the How

It’s Saturday and today will be John’s third meeting with Gene. Even though there’s been no change in John’s overwhelming workload, today is the first time he’s not considered canceling. He knows the value of this information and is looking forward to opportunity to learn more.

It’s John’s turn to provide lunch and Gene’s in for a treat…John’s bringing chili-cheeseburgers and fries from the Burger Station. On the way to Gene’s office, the smell of those burgers is more than John can bear and he has a few fries on the drive.

As soon as John steps in the office door, Gene yells out from the conference room, “You brought Burger Station”. Over the years when John was working for Gene, the two of them frequented this fine establishment often.

As John gets lunch out, Gene says, “We have a lot to cover today, so we better get started. As we go through this today, consider the similarities of building a proposal with building a construction project. Now let’s review…

First, we started with WHY.

Why do you do what you do? Why do should you do proposals? Both of the questions are similar to the question that should be asked of a customer when they’re considering a construction project. Why do you want to do this project?

Second, we discussed that communication is the contractor’s responsibility.

We are the professionals in the arrangement. We shouldn’t expect the customer to know everything about construction. This is why they are looking to hire someone to do their project. It’s up to us as contractors to communicate clearly.

Third, we discussed bid mistakes.  

The ones that are commonly made and are costly. Being aware of these mistakes helps you know what to avoid and increases the opportunity for happy customers. Not to mention it gives you a big advantage over your competition.  

In our meeting two weeks ago (link to 1st meeting post) I gave you the bid proposal overview to take and review. Today we’re going to go through it. I know it seems like were still not doing proposals. Think about it like a construction project…

The designing and planning take as long as the construction.

Let’s start by looking at the documents included in the system and a brief definition of each.”

Bid sheet – A Word document with the various construction categories and individual tasks listed with space for filling in the scope of the work to be done, dimensions, materials, locations, etc., for each category as needed for clear communication.

Worksheet – An Excel spreadsheet with all the construction categories and individual tasks listed with overhead and profit markup formulas.

Proposal – A word document with space to fill in pertinent information, i.e. customer’s information, what will or will not be supplied by the contractor, the scope of work, the proposed price for each specific element, a total project price, payment arrangements and project duration.

Data Base – An Excel spreadsheet with prices for material and labor for a wide variety of specific construction tasks. This information will be used to fill out a blank worksheet template by copying and pasting.

After reviewing and discussing these documents and definitions they looked at the the process of doing a proposal.

STEP 1 – Gathering Information

Gathering the right information correctly and effectively is critical to preparing an accurate and thorough proposal. Once you’ve been contacted by a potential customer start by scheduling a meeting to discuss their project and find out what they hope to accomplish. At this initial meeting gather –

            Measurements and dimensions, existing and new

            Building materials, existing and new

            Pictures of pertinent areas and existing construction

            Customer’s design ideas and finishes

The information gathered at this meeting can be recorded in whatever way works best for you. The important thing in this step is to gather any and all information needed to prepare an accurate proposal. It can be handwritten on a printed out Bid Sheet template, or it can be entered directly to a Bid Sheet using a tablet, smart phone or laptop. Using the Bid Sheet minimizes overlooking things because the different areas of a construction project are already listed.

STEP 2 – Preparing the Scope of Work

After the preliminary information has been gathered it’s time to clarify the scope of the project by writing out the description of each specific task in terminology that both the customer and the contractor understand. It needs to include enough specifics to be thorough without being too technical. It doesn’t help communication if the terminology is confusing to the customer. This written description on the Bid Sheet will be transferred to the Proposal and serve as a written scope of work to be performed and materials to be provided.

STEP 3 – Pricing the Project

Next is putting prices to the project. This process involves two different Excel spreadsheets, the Worksheet and Data Base. Based on the descriptions written on the Bid Sheet, content from the Data Base will be copied and pasted into the correlating cells on the Worksheet. After the pertinent information from the Data Base has been placed on the Worksheet it’s time to fill in the quantities.

STEP 4 – Quantities

On the Worksheet you will fill in the quantity needed to do the work on that line item. This may be lineal feet, square feet, square yards, cubic feet, cubic yards, numbers of pieces, etc. Once this is completed you will now have prices for each of the different tasks listed on the Proposal.

STEP 5 – Preparing the Proposal

Now you have everything you need to complete the Proposal. You will take the descriptions from the Bid Sheet and the prices from the Worksheet and put them both on the Proposal. After filling out the customer’s information at the top of the page, the scope of work, the price for each task, the total project price, how payments are to be made and the duration of time to do the project, the Proposal is ready to present to the customer.

As they wrapped up the meeting, Gene looked at John and asked him what he thought so far. John said, “I had no idea there was this much to doing proposals.

Gene said, “I know. That’s why most contractors either guess at their bids or just give estimates…and we’ve all seen how that well that works out.

Next week we’ll dig deeper into GATHERING INFORMATION.

Previous posts in this series –

What is “business clarity” and how do you find it?

Learning How to Get a Construction Project Started Out Right

It’s Time for the First Meeting

Being Aware of the Common Bid Mistakes is the Best Way to Avoid Them

Being Aware of the Common Bid Mistakes is the Best Way to Avoid Them

by

This is the First Step in Building a Better Proposal

Even though John was still overwhelmed and his schedule was packed, he knew the only way to ever get control was to keep his upcoming appointment with Gene.

John had spent a lot of time this past week considering the questions Gene had asked at the first meeting.

Why do you do what you do?

Do you love what you do?

Why do we need to do proposals?

As John was driving to the office of XYZ Construction these questions were still banging around in his head with a wide variety of answers and no real clarity.

Going in John smelled something amazing. He hadn’t realized how hungry he was. Gene was providing lunch this week and the smell made his hunger apparent.

In the conference room Gene was stirring some chili. “Lunch is ready. Grab a bowl and let’s get started.”

As they sat down Gene asked, “Did you come up with answers to the questions?”

John sat there for a minute and said, “I’ve come up with way too many answers. About the time I think I have it figured out; another answer shows up.”

Gene grinned, “That sounds about right.

The important thing is not having every answer to every question, but rather to continually be asking the questions and actively looking for the answers.

I still ask and answer questions every day.”

“A good way to find WHY answers is to figure out things that work and things that don’t. Let’s start with a WHAT question. Gene handed John some papers and said,

“What are the common bid mistakes made by contractors and how can you avoid them?”

#1 Your customers lack clarity – You remember the story I told you last week about that misunderstanding I had with a customer? This is a perfect example of how the lack of customer clarity is a problem. You need to provide a clear detailed description of the work and the materials that you are going to provide. A clear scope of work helps avoid customer confusion. The Blueprint for Building a Better Proposal will provide you a system for giving clarity to your customer.

#2 Production crews lack clarity – The scope of work not only provides customers with clarity, but it also gives the production crews a clear understanding the work to be done. This prevents subcontractors/employees from doing more or less than the project includes. Too much work done means cost overruns. Too little and the customer is unhappy. The Blueprint for Building a Better Proposal will give the production crews a clear description of the work to be done.

#3 No production budget – When the production crews don’t know what dollar amounts have been figured to do the project, they often spend more than expected. These cost overruns mean less profit.

If you take care of the pennies, the dollars will take care of themselves.

Let your production crews know how many pennies they have to spend. This will lead to more dollars of profit. The Blueprint for Building a Better Proposal will provide you with budget numbers automatically.

#4 Unsatisfied customers – Discontented customers are the worst. Not only can they be a drain on company morale, they can become serious problems that can cost you money and hurt your reputation. They’re paying you to have their dream turned into reality. When they don’t have an accurate dollar amount before the work is done, they will not be happy when it’s finished and costs more than they expected. The Blueprint for Building a Better Proposal gives the customer a clear expectation of cost before the work starts so that when it’s done for that price, they will be happy.

#5 Unprofitable projects – One of the biggest problems in construction is Guesstimates. Guessing at the amount of time and material it’s going to take to do a project is a big risk. Different size projects require different overhead and profit margins. The Blueprint for Building a Better Proposal provides predetermined options of overhead and profit when preparing a proposal. Proposals done this way can increase the profitability of your projects.

#6 Trying to do everything yourself – Most small construction companies only have a few people working. The focus is on the physical construction and doesn’t leave time for doing accurate detailed proposals. Most contractors don’t like paperwork. This leads to hasty, inadequate and oversimplified proposals. The Blueprint for Building a Better Proposal is a system that allows you to focus on doing construction while office staff does paperwork.

#7 Your bidding system isn’t customizable – Most construction projects consist of a variety of different areas of construction. You need a system that can include all or one. Because markets and geographic locations are so different, you need a system that you can adjust to your specific requirements and rates wherever you are. The Blueprint for Building a Better Proposal allows you to be able to customize proposals in these ways and more.

Gene could see that John’s eyes were glazing over. “I know this was a lot to take in and doesn’t feel like we’re getting any closer to actually doing proposals, but I assure you…

Getting clear on these mistakes will give you a head start to providing better proposals.

And next week we’ll start working on the first step to Building a Better Proposal.

Previous post in this series:

What is Construction Clarity and How Do You Find It?

Learning How to Get a Construction Project Started Out Right

It’s Time for the First Meeting

Action is Required if You’re Going to Accomplish Anything

by

A Plan is a Great Place to Start, But Won’t Build the House

I don’t know about you, but I find it easier to plan than to do. Last week we discussed how overthinking things slows down our plans. The thinking part is important, but it alone isn’t going to accomplish our goals.

The week before we examined how learning can keep us stuck and prevent us from moving forward. Like thinking, learning is also essential to moving forward toward our dreams.

It became evident that while both of these are great, neither will work without action.

We must “do” if we’re going to succeed.

On the other hand, just doing has issues as well. If you don’t know what you want to accomplish how will you know if what you’re doing is the right thing.

If you want to build a new home, you need a plan before you start. Granted, it doesn’t have to be a full blown super detailed set of blueprints. It could even be just in your mind, but there’s still a plan.

The problem is that it’s hard to clearly share plans when they’re only in your head.

So, if there are any others you plan to share the home with…it might be a good idea to find a clear way to communicate your plans.

The key to accomplishing the things you want is in understanding how planning and doing work together. Napoleon Hill summarizes this well with his quote…

“Plan your work and work your plan.”

Building a house is a great example for building anything, whether that’s a building, a business or a life. You need to start with the end in mind. What is it’s purpose? What will it look like when it’s finished? What needs to be done to achieve that outcome? In what order do these things need to be done? This is the planning part.

The doing part comes with some questions as well. Are you going to do it by yourself or hire professionals? Do you know how to do it or are you going to need to learn how? How long is it going to take if you do it yourself? Do you have that much time?

The bottom line is that you need to be clear on what it is that you want to accomplish and then determine the best way to get there. Once you’ve figured this out get started building.

If you don’t get started, you’ll never get finished!

Being Aware of Mental Roadblocks is the First Step to Overcoming Them

by

Stop Overthinking Things and Do Something

Last week we discussed learning as a form of procrastination. Too often, time is spent learning rather than doing. There’s less risk with learning. Doing is scary. What if I do it and nobody likes, it, needs it or wants it?

Overthinking things is a form of procrastination

Clarity of your goals and the best way to get there is hard to know. There are so many great and important things that I want to do, how can I know which ones to do?

“The person who chases two rabbits catches neither.” This proverb is a great illustration of a lack of focus. Achieving your goals is like chasing rabbits…often way more than just two.

I don’t know how many rabbits you’ve actually chased, but trust me they’re hard to catch. Rabbits seldom run in a straight line despite being pretty quick, they change direction often to throw off their pursuer. In order to catch one, you need to follow its every move if you are to have a chance.

Our goals are a lot like rabbits…they run fast and keep changing direction.

Being clear about where you want to go is the first step to achieving your goals. I’ve always been an overthinker. I naturally spend a lot of time thinking about things. Which thing should I do first? Is it the right thing to do? What’s it going to take to get it done? Do I have time to do it right now? Should I wait and do it later.

Determine which rabbit is the most important and chase that one first.

The opposite of overthinking is diving in without thinking. This can be a problem too. Diving in without any consideration or planning can lead to a bad outcome as well. It’s a good idea to know the depth of the water before you jump.

Finding the balance of these two things is the key. Somewhere between overthinking and not thinking.

There have been a lot of times when I have dreaded starting some project because I thought it was going to be too hard or take too long. Then after it was done…the actual doing was way easier than it was in the thinking version.

Thinking is like learning. There’s less risk with thinking.

The way to deal with overthinking is to think. I know this sounds backwards, but you need to spend some time thinking about it so that you know how to be prepared to handle it before it happens.

Be clear about who you are. What your tendencies are. What things you like doing. What are the things that are most important for you to accomplish your purpose?

Get clear on these things and then be intentional about focusing intensely on the most important things first. If you’ve thought about it ahead of time you will be way better prepared when you need to make decisions.

The problem with overthinking is in the “over” part.

Overthinking is a roadblock to productivity, but it doesn’t have to be if you avoid the “over” part.