LC/DBM provides landscape contractors with Educational, Imaginative and Practical information about their business, their employees, their machines and their projects.
Issue link: https://landscapecontractor.epubxp.com/i/73007
Hardscapes 0!6%23s-!3/.29s",/#+3s2/#+3 Planning for Profit and Success ! (!2$3#!0%2 3 #(!,,%.'% Jimmy Reed – ICPI Instructor; Contractor Liaison, Pavestone, LLC L arge residential and commercial projects come with many potential pitfalls, which can make a big difference in a project's profitability and a company's long-term success. Planning is one of the most important components to having a successful and profitable project. Some basic questions for hardscap- ers to consider include: s (OW MANY MOBILIZATIONS AND HOW MANY SQUARE FEET AT A TIME WILL BE MADE AVAILABLE BY THE GENERAL CONTRACTOR s 7HERE WILL YOU STORE YOUR MATERIALS AND HOW MUCH CAN YOU STORE AT ONE TIME s (OW FAR ARE THE MATERIALS FROM WHERE THE WORK WILL BE DONE 7HAT SIZE TYPE OF DELIVERY TRUCKS CAN ACCESS YOUR JOB SITE Time spent moving product is crucial to reaching maximum profit on ANY PROJECT SO THE EQUIPMENT USED SHOULD BE CAREFULLY SELECTED FOR BEST results. Other factors to consider: s 7HAT WORKING HOURS ARE ALLOWED FOR THE PROJECT s 7HAT OTHER SUBCONTRACTORS MIGHT BE WORKING IN THE AREA THAT MIGHT SLOW WORK DOWN 4HERE WILL BE MANY OTHER PIECES TO THE PUZZLE BUT PLANNING THE transportation and movement of materials before starting a project IS A BASIC STEP THAT WILL ONLY BENEFIT THE BOTTOM LINE Estimating vs. "Guess-timating" Just because the project calendar is full does not guarantee a prof- ITABLE ENTERPRISE $ON T LET EGO OR A BUSY SCHEDULE FOOL YOU n WATCH THE NUMBERS CLOSELY 4HERE ARE PLENTY OF VERY GOOD INSTALLERS IN THIS INDUSTRY BUT HOW MANY TAKE PRIDE IN THEIR ESTIMATING WORK 4HIS IS WHERE THE PAVER MEETS THE ROAD OR BECOMES THE ROAD AS IT WERE (ARDSCAPERS NEED TO BE GOOD AT INSTALLATION BUT SHOULD BE EVEN BET- ter at estimating. %STIMATES ARE LIKE MINI PROFIT LOSS STATEMENTS 7HILE THE FINANCIAL PICTURE OF EACH ESTIMATE SHOWS THE EXPECTED PROFIT ON THAT PROJECT THERE SHOULD ALSO BE A LINE IN THE ESTIMATE THAT SHOWS THE BREAK EVEN NUMBER 7HY "ECAUSE WITHOUT A BREAK EVEN NUMBER YOU HAVE NO FOOTING TO NEGOTIATE YOUR PRICE ON A PROJECT !ND IN THIS ECONOMY NEGOTIATION WILL BE IMPORTANT TO ANY JOB 4HE ITEM MOST OFTEN OVER- LOOKED ON A CONTRACTOR S ESTIMATE IS OVERHEAD RECOVERY 2EMEMBER IF A PERCENTAGE OF OVERHEAD IS NOT INCLUDED IN EVERY ESTIMATE THEN EVERY BID IS ESSENTIALLY SET AT BREAK EVEN LEVELS /N AN ESTIMATE OR PROFIT LOSS STATEMENT EVERY LINE ITEM IS A PERCENTAGE Above: The best investment in labor efficiency is to continually train workers and offer opportunities to expand their certifications and skill sets. Cross training across multiple specialties makes workers more effective and ultimately saves money. 14 LC DBM (Continued on page 16)