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How To Build A Better Proposal

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One of The Foundational Building Blocks of a Successful Company

 

Small and medium size construction companies struggle with preparing detailed and accurate proposals. This problem isn’t restricted only to small companies. It begins there, but only gets worse until they either get big enough to absorb the costs of guessing at project costs or give up trying and quit.


When I started doing construction forty plus years ago, I had no clue how to prepare proposals and like every other small construction company…I guessed. I used a common method called, trial and error. Doing proposals this way is a real crap shoot and doesn’t leave much room for mistakes.


Preparing accurate proposals that communicate clearly doesn’t have to be a roll of the dice.


Early on I began working on a proposal system that worked for me. It has gone through years of experimenting and tweaking to become what it is now. Over the last fifteen or twenty years I’ve been asked multiple times by other contractors who saw my proposals how I did them. I just assumed that everybody else was doing something similar.


Several years ago, it hit me that this wasn’t the case after being hired by other contractors to do proposals for them. This is when it became apparent that there was a real need for a proposal system. I kept pushing this down the road until God hit me upside the head with a board and pointed out that my system could help other contractors.


I’ve been busy with construction projects and life in general and continued to procrastinate developing a system that other companies could use. Earlier this year I decided I better get to work on this before I get hit in the head again.


I’m happy to announce that we are currently in the final stages of preparing a proposal system that will be made available for other contractors to use. It’s currently being tested by independent contractors. We are rebuilding the Solution Building website to allow for downloading the proposal documents. It’s not just for general contractors either, it will work for any of the construction trades.


This proposal system will include templates for:

 

  • Bid sheet – A Word document with all the construction sections and individual items already listed out with space for filling out the scope of the work to be done, dimensions, materials, locations, etc., as needed for communication.

 

  • Worksheet – An Excel spreadsheet with all the construction sections and individual items already listed out with optional overhead and profit markups inserted in the appropriate cells.

 

  • Estimate – A word document with spaces to fill in the pertinent information, i.e. customer’s information, what will or will not be supplied by the contractor, the scope of work, the estimated price for each specific element and a total estimated price.

 

  • Proposal – A word document with spaces to fill in the 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.

 

  • Contract – A word document with spaces to fill in the pertinent information, i.e. customer’s information, list of referenced documents, construction funding information, property specifics, project start date and legal terms and conditions.

 

  • Proposal-Contract – A word document that is a combination of a proposal / contract in one.

 

It also will include a data base for material and labor costs:

 

  • Data Base – An Excel spreadsheet with prices for material and labor for a wide variety of specific construction tasks. This information will be copied and pasted to a blank worksheet.

Clear communication between contactor and customer is difficult, especially when there isn’t any. Last week I wrote about the importance of communicating clearly through proposals and reasons contractors avoid doing them. 


Next week I will break down the proposal process even more.

 

 

I Know Why Rome Wasn’t Built in A Day

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It Was A Lack of Web Presence

 

I’ve written a lot recently about the high cost of no communication. I think this might be why it took so long to build Rome. The people in charge of the project struggled to find qualified contractors.


If they only had someone like Stacey with Custom Internet Services to help them with a website.


A few weeks ago, I wrote about rebuilding our Timber Creek Construction website. Drum roll…it’s finished, live and amazing. Check it out here. Like any construction project, I had a dream and a vision of what it would be. I couldn’t be more pleased. Great job Stacey!

 

 


Our reason for having a website is so interested people can find out more about the construction process. Construction doesn’t have to be overwhelming. Our site also includes pictures and information of past projects. This helps customers see what can be done and incite ideas for their own projects.


Most customers don’t have an in-depth knowledge of the construction industry. This includes questions to be asked and answered, what should be expected from their contractor including documents that should be included. The site is designed to help with this too.


Our site had gotten old and stale, as websites go. This was pointed out to me a couple of years ago by Shannon Martin a previous assistant. We’ve been thinking, talking, designing and planning this rebuild, off and on, since then.

 


I was given an opportunity to speak to the Kansas Barn Alliance about the importance of communication through proposals and contracts. Shannon was responsible for this as well.


It was decided that it would be good to have the new site finished by the presentation and we did. Thanks Shannon. 😊


Our goals were a site that was fresh, fun, clear, informational, easy to use and looked great. Mission accomplished.


The Timber Creek Construction site turned out so good, we plan to make some changes and updates to the Solution Building site next.


Check out the Timber Creek site and let us know what you think in the comments below.

What Should Be Included in A Contractor’s Communication

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The Nuts and Bolts of a Construction Agreement

 

The last two weeks I wrote about how to prevent your construction project from falling apart and the high cost of no communication. 


In the first post I focused on –

  • The fact that bad construction experiences are way too common
  • The most frequent reasons that it happens
  • The number one reason it does


Last week’s emphasis was on –

  • The high cost of this bad communication
  • Reasons communication is avoided
  • The results that can be expected when it doesn’t


What can you, as the customer, do to avoid having a bad construction experience?


It’s not as difficult as it initially appears. It will require some time, effort and education. Reading this week’s solution is a good start.


Communication needs to be thorough and understandable. If it’s not, then it really isn’t communication. When considering a construction project, it is even more important because you have a lot at stake, i.e. time, money, finished project, etc.


Before you start your project, you should expect a written proposal. This proposal should include:

  • Information pertaining to customer and job – Customer’s name, project address, what the job is, who the proposal is going to.
  • What is going to be provided by the contractor – Labor, services, material, equipment, etc.

  • Scope of work – A written-out description of what the project is going to include, specific work to be done, dimensions, materials to be used, etc.
  • Price – Amount for each specific element of the project in addition to a total for the complete project.

  • Payment arrangement – When the payments will be made (at specific time intervals or at completion of specific portions of the project).
  • Project duration – The amount of time the project will take to do after starting.


Now you have the important pieces you need to make an informed decision about your project. You should be able to determine if you and your contractor are in agreement about what the project includes, the price to have it done and how long it will take. One piece of information that is still missing, is when will the project get started. This information will come in a contract after the proposal has been signed.


If your contractor is qualified to do your project, they should be busy doing other construction projects as well as preparing other proposals. This means they can’t realistically schedule your project until the proposal has been signed.

 

Then they can follow up the signed proposal with a contract. This contract should include:

  • Information pertaining to customer and job – Same as on the proposal including any additional pertinent legal information needed.
  • Reference to any additional documents – This could be drawings, specific information about materials used, requirements of the governing body, etc.
  • Construction funding – Pertinent banking information if money is being borrowed.
  • Property specifics – Location of boundaries and/or need for surveying.
  • Start time – The time for the project to be started and the duration.
  • Terms and conditions – More in-depth explanation of project specifications, expectations, requirements and permissions.

 

This amount of communication can lead to information overload, but don’t let it. If you don’t understand something, ask your contractor. If they’re unwilling or unable to satisfactorily explain it to you, this may be another indication that they aren’t the right fit for you.

 


This construction project is your dream don’t let it turn into a nightmare.

 

I’ve spent a lot of time on the communication reason construction projects fall apart. Next week we’ll look at the second half of the list.

  • Poor quality
  • Cluttered and unorganized job site
  • Left hanging part way through an unfinished project
  • Lack of scheduling or poor time management

 

Share your construction nightmares in the comments below.

How To Prevent Your Construction Project From Falling Apart

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Emphasis on, “The Project”, Not the Construction

 

 

You or someone you know has had a construction project, ‘not go as planned’.

 


To get it back on track may have just required a little clarification or…it may have ended up in court. Clarity of the project up front is the most important and most overlooked part.

 


I’ve heard people say the worst experience of their life was a construction project gone bad. It doesn’t have to be this way!


This problem can, and should, be addressed before any actual construction begins. The underlying issue with any disagreement is, different people seeing things differently. A good contractor’s job is to sort through these differences and develop a clear picture of the project scope, design, schedule and price.


Most construction projects fall apart for one of these reasons:


• Misunderstandings due to poor or no communication
• Blindsided by cost overruns or hidden costs
• Completed project wasn’t what you wanted or expected
• Not understanding construction terminology
• Poor quality
• Cluttered and unorganized job site
• Left hanging part way through an unfinished project
• Lack of scheduling or poor time management

 

The number one foundational problem between customer and contractor is –


LACK OF or POOR COMMUNICATION.


The first four…half of the list, are communication related. Good communication takes time and effort. Time and effort translate into additional cost. Additional cost means your project’s price is higher. Price is important and often leads to choosing a lower bid. Full circle back to the importance of communication. If you are aware of the differences and are presented a clear plan, you can make the best decision for you and your project.


The next two on the list have to do with trade skills and a LACK of QUALITY WORKMANSHIP. The level of craftmanship expected has been decreasing for years. I believe this is the result of importance placed on price rather than quality.


The last two focus on the LACK of HONESTY AND INTEGRITY. This is another place where the bar has been lowered and needs to be raised back up. Contractors need to say what they do and do what they say.

 


This entire list of issues can be remedied with attention given to these three overarching areas –


Better Communication
Quality Workmanship
Honesty & Integrity

 

 

Next week’s solution will focus on the number one reason construction projects fall apart – LACK OF or POOR COMMUNICATION. We will look at things you should know and expect from your contractor before any construction begins and throughout the project

 

Share your worst construction experiences in the comments below.

Rome Wasn’t Built in A Day and Neither Is A Colossal Website

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A Website Isn’t as Important as Rome, But Pretty Close

 

 

We’re in the process of rebuilding our Timber Creek Construction web site to freshen it up and provide a clearer and more informative message. Whether building Rome or a website, both are big projects. I thought it would be good to share –


The reasons behind the rebuild


A sneak peek at what’s coming

 

Why does anyone even bother having a website anyway?


According to How Stuff Works, “A website lends an air of credibility – it lets people know that you’re serious and ready to do business. It’s a guaranteed sales booster and a whole lot less expensive than buying ads.” So, if you’re in business and you want to connect with someone who might need your product or service, having a website is a good thing.


Okay, but we already have a website, why do we need to rebuild it?


 

 

That’s a good question and one that I asked myself. What’s wrong with the site we have? It’s not that old. We built it when we started Timber Creek Construction…in…2003. Okay, so that’s a little longer ago than I thought. It was cutting edge then but now…not so much. It took someone on the outside to bring this to my attention.

 


We need to clarify our message.


There is a whole list of issues that customers typically have with building contractors, almost all of them come down to one thing – poor communication. Good communication takes two, but in a business to customer relationship the majority of this responsibility lies on the contractor. Clearer, better communication is one of the main things that we hope to accomplish with the new website.


One way to improve the communication is to improve contractor’s business systems. Most small construction companies knew how to do their trade when they started their business but didn’t have any idea how to manage the operational part of their company.


As I looked closer at the Timber Creek website, I discovered that both Timber Creek Construction and Solution Building’s messages at the foundation were the same. In both cases we help people find solutions for building their dreams, whether that’s constructing a building or an operating system to run a more effective business.


Helping small businesses develop and implement business systems and informing and educating the customer is the purpose for Solution Building.

 


Let us know about any issues or problems that you’ve have with construction projects or operating your business in the comments below.


We will be sharing progress updates and more details of both Timber Creek Construction and Solution Building in future posts.

What Are the Benefits to Having A Porch?

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How Adding a Porch to Your Home Can Change Everything

When talking about houses one of the things that is discussed with pride or envy is a porch. Porches will make all the difference to how your home feels before ever stepping foot inside. You’ve probably heard it said that you only have one chance to make a good first impression. This is true for your home as well.

A porch done right can make a great first impression.

Timber Creek Construction is in the pre-construction stages of building a front porch on Will and Ivy Tatum’s new home. They are currently in the process of getting a home set in the country on some family property. The family connection and history lend itself to making the home special. The porch on this home will do just that.

Factory built homes have come a long way from the early days of single wide trailer houses when they weren’t much more than a camping trailer with skirting. I don’t know but having a trailer tongue sticking out on one end and a license plate on the other, just doesn’t feel very long term.

Tatum’s purchased their new Commodore modular home from Shocker Homes east of Wichita in Augusta, Kansas. It is a structurally sound wood framed home bolted to a concrete foundation. (No trailer tongue sticking out on this house.) LG Pike Construction in Arkansas City, Kansas set the home on the foundation with a crane. This process alone was impressive. (Follow this link to see some video.)

Porches vary depending on geographic location, architectural design and purpose. According to Dictionary.com, a porch is, “an exterior appendage to a building, forming a covered approach or vestibule to a doorway.”.

A porch without a roof is not a porch.

A wood structure with spaced flooring is a deck. A concrete slab without a roof is a patio. A raised uncovered concrete area at a doorway is a stoop. All of these serve a purpose, but none of them can offer what a porch can.

The roof portion is what makes all the difference. It’s the part that adds the real value.

Here are a few of the benefits to a porch:

  • Additional protection from the elements (sun, wind, rain)
  • A protected and shaded place to enjoy a cup of coffee, read a book, entertain guests or simply take a nap.
  • Protection from bugs if it is screened
  • Improves appearance of the home’s exterior
  • Increases the value of your home

One of the reasons decks or patios are done rather than porches is the cost. There’s no question that the addition of the roof will increase the cost substantially. Like any construction project that is undertaken, the more that is done, the more that it will cost.

The question…Is it worth it?

Watch the difference that this porch will make to Tatum’s home. Once you see the finished project, I think you and they will both agree.

It was definitely worth it.

Keep watching to see the difference a porch can make.

If you have questions about this project or others contact us in the comments section below.

The Next Chapter in “The Saga of the Grain-Bin Home”

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The Hero and Her Guide Are Defeating the Evil Budget Monster

As the voyage continues, Hannah and Mark trek forward on their journey toward the allusive ‘Grain-Bin Home’. An expedition like this is not for the faint of heart. It requires the passionate desire of a hero and the experience and knowledge of a trusted guide.

This story began a year ago with the idea of building a small home by repurposing a couple of used grain bins. The two steel bins would be connected by framed wood construction. This idea was dreamt about, discussed, thought about, revised, discussed some more and over the next several months, the preliminary plan emerged.

The collaboration of the hero and the guide in developing a plan before starting on an adventure like this is critically important to achieving a positive outcome. This planning stage is often as long or longer than the building portion. Turning a dream into a reality is the hardest part of the quest. It’s also the most exciting. It is the part where the imagining turns into the doing.

We prepared a proposal based on the preliminary plans. The dollar amount was more than Hannah wanted to spend. So, we went through a list of things that could be changed or removed to get the project closer to the target figure. This included things like radiant floor heating, Pella Designer Series windows with blinds between the glass, and a pass-through indoor/outdoor fireplace.

As we worked on these revisions, Hannah on the drawing and me on the proposal we were presented with some benefits of having an experience guide and the connections that come with them.

First, I became aware of some tongue and grove V-jointed 1×6 pine that a painter had, which had been stained the wrong color for one of his projects. There was enough of it to do the interior wall that we are planning to put stained wood on. It was offered to us at the cost of the wood…we bought it.

Next, I received a communication from my Pella representatives, that Pella Products of Kansas was going to have a “Contractor Garage Sale”. This was to reduce the number of unclaimed, mis-ordered or slightly damaged items taking up space in their warehouse. Hannah and I went to this sale. With some ‘on the spot’ creative solutions we made some idea adjustments and were able to get all the windows and one of the doors needed. This was a price reduction for the customer of over $23,000 from the original proposal. We will spend a portion of that savings on painting the windows so they will all be the same color.

We are on the cusp of transitioning to the doing.

Hannah is finalizing the design changes created by the earlier price reduction list and the windows and door that were purchased. At the same time, I’m finalizing the figures as per those things as well. In the next few weeks Hannah will securing the money needed, and we will be starting on this adventure.

Keep watching for the next chapter in “Saga of the Grain-Bin Home” and share it with others you think might enjoy this story.

A Missing Piece of The Puzzle

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What Ever Happened to Contractor Etiquette?

Last week I wrote about etiquette after a friend had a plumber spit tobacco juice in her sink while they were talking. The lack of professional conduct (especially in the building industry) baffles me. As I have been considering this topic it’s become apparent to me that this piece of the professional puzzle is missing and needs to be found.

Where has this important piece of the business relationship puzzle gone?

It’s easy to find, but hard to put in place. This puzzle piece is right here in each of us. The problem is the unawareness that it’s even missing. We’ve become so busy in this fast paced, need to get things done life, that we’ve become self-centered. Not necessarily in an intentional knocking people out of my way selfishness. Its more production focused rather than people focused. As I think back on situations that I’ve witness or heard of, it is apparent that this problem needs attention. Whether it’s –

  • Standing in a customer’s upholstered chair using it for a ladder
  • Leaving an electric circuit turned off over a weekend which had a customer’s freezer plugged in to it
  • Laying down after lunch and taking a nap on a customer’s couch
  • Throwing food trash in the void behind a stone veneer and leaving it or
  • Spitting tobacco juice in a sink

As professionals it is up to us to do something about this.

So, what are we going to do?

The first thing is to be aware of the problem. If we ignore it, it won’t go away, it will continue to get worse. This means that we need to hold each other accountable for our actions. As professionals, if we see something unacceptable being done, we need to call each other out with respect and in private. This isn’t about public humiliation. It’s about raising the bar. The difficult thing is my acceptable behavior and yours may be different. That’s why we need to find a reasonable standard.

Here’s a good place to start –

GOLDEN RULES FOR CONSTRUCTION CONTRACTORS

  1. If you open it, close it.
  2. If you turn it on, turn it off.
  3. If you unlock it, lock it up.
  4. If you break it, admit it.
  5. If you can’t fix it, call in someone who can.
  6. If you borrow it, return it.
  7. If you value it, take care of it.
  8. If you make a mess clean it up.
  9. If you move it, put it back.
  10. If it belongs to someone else and you want to use it, get permission.
  11. If you don’t know how to operate it, leave it alone.
  12. If it’s none of your business, stay out of it.
  13. If it will brighten someone’s day, say it.
  14. If it will tarnish someone’s reputation, keep it to yourself.

Okay…so these are the same as the Golden Rules for Living in last week’s post. If they make sense for life, they make sense for business.

In my research I came across a Construction Etiquette blog post by Stefaney Rants. She points out some specific etiquette for the contractor to the customer.

  • Return calls, send contracts in advance, sign papers in a timely manner.
  • Be on time!  If you are going to be late, call the home owner.
  • Keep the job site “clean”.  Have the crew pick up their lunch trash and water bottles.  Ask the home owner for recycling bins.  Dust will be expected, but use a plastic tarp if possible to contain the dust and/or clean some areas if it gets out of hand, like on the home owners grill for example.
  • Be aware of landscaping.  Don’t park on flower beds or other plants.
  • If something breaks, let the home owner know!  You want to keep a good reputation and the home owner will definitely tell their friends about your work.

She also lists some etiquette for the customer to the contractor. Next week we will approach this missing puzzle piece from that perspective.

Contractors – start working on your business relationships – the BAR IS BEING RAISED.

What Does It Take to Be A Builder?

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There’s So Much More to This Building Thing Than Just Construction

I regularly go back through my life plans, especially at this time of the year, reviewing and revising them as needed to build the best life. Just like a construction project needs reviewed and revised in different phases of the project. Whether a building or a life, this process shouldn’t stop once the initial construction is complete. It is an on-going process until the end.

It is amazing to me the correlations between building a business, a life or doing construction. Building terminology is used everywhere. As a part of my life plan review, I was going back through some Michael Hyatt’s Platform University training. One of the things that caught my attention were the words that were used. In the first two sentences of the instructions I found this; “…building your website…”, “…lay an important foundation….” and “…platform-building…”.

The use of this construction terminology is a great analogy with life building as is evident in the more than eighty times it’s used in Scripture. You can find some examples here. In Luke 6:48 (NCV) it says, “…everyone who comes to me and hears my words and obeys. That person is like a man building a house who dug deep and laid the foundation on rock. When the floods came, the water tried to wash the house away, but it could not shake it, because the house was built well.” This sounds like a pretty good plan for building a life to me.

If you have read more than a few “Weekly Solutions” posts, you will have noticed the connections with building in many of them. Here are just a few – Building the Life of Your Dreams, Building the Best Life, Means It’s Always Under Construction, The Importance of Intentionality for Building Your Dream Life and Building Your Business Is Critical to The Survival of the Business. This really is the underlying theme for Solution Building. The central purpose is to “help people find solutions for building their dream business and life through improved communication, better business systems, quality construction projects and life lessons.

Most importantly any kind of building, whether it’s a construction project, a life or a business, needs to start with a solid foundation. My foundation is my CORE VALUES built on the SOLID ROCK of Jesus. 1 Cor. 3:11

As we move forward into this new year, we will be sharing more specific examples and systems to help you build your dream business and life. If there are areas in your business or life where you need a solution, let me know in the comment section below.

How to Simplify A Complicated Business System

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Focusing on One Shovel Full of the Mountain at A Time

With my years of construction experience, I tend to view things from a building perspective. The things needed to build a good structure are the same for building a good business.

 

These things are:

• Purpose – The why, the reason for building it, who is it going to serve?

• Design – How is it going to look, how is it going to serve (products, services or both)?

• Style – Personal preference of the finished project, not everyone wants everything to be the same, we are all individuals.

• Foundation – This is what supports everything else, the core values of the construction.

• Framing – This is what sets on the foundation and connects everything, it is the system of operating.

• Tools – These are used to put everything together and maintain it daily.

• Team – The people employed to put the pieces together and to perform the daily operations.

 

There is a lot that goes into building something. I have written about how building and operating a business can be like standing in the shadow of an overwhelming mountain and the importance of having a clear plan and being organized. It is easy to be pulled in many different directions when trying to build and operate all the different pieces of a business.

 

By nature, I tend to make things complicated (sometimes more than they need to be). This is in part due to my focus on detail and isn’t all bad. The down side to being like this is that things don’t get done very fast. I know that I need help to build my business and move my mountain.

 

I have been working to get better at sharing shovels. I have determined that one of the things I’ve done in the past is to overwhelm new team members. So, to avoid this I am working on ways to simplify the system and to focus on one shovel of the mountain at a time.

 

Our business has three areas of focus; Sales/Marketing, Production/Operations and Administration/Finance. There is a lot in each of these areas and they all are critical to the support of the business. Keeping them operating equally is one of the most important and difficult tasks.

 

The focused shovel today is preparing a Proposal. This is the area that I’m currently working on in preparation for my Administrative Assistant. It involves things that both I need to do and things I can delegate.

 

Preparing a Proposal involves:

• Meeting with the customer – Finding out what the project consists of and helping them figure out what their dream is. Take pictures, get measurements and make the necessary notes needed.

• Writing down the scope of work to be done – Fill out the areas and categories of the Bid Sheet with the explanation of the work to be done.

• Preparing the price for doing the work – Use the information gathered to determine lineal feet, square feet, cubic feet, etc. of the different areas described in the Bid Sheet and enter it into the Worksheet.

• Compiling this information on to the Proposal – Take the information of the two previous bullet points and put it on the Proposal to be presented to the customer.

I know that I have almost forty years of developing this system and I need to get it out of my head, simplify it and put it on paper if I ever hope to move this mountain.