Repeat and Referral Business
by Shirley Caraveo, M.S. Safety

Repeat business is the life blood of any small business. Referrals are the gravy. For the contractor, repeat business and referrals prevent him from having to expend a portion of his time and budget on marketing; to get new customers. In the quest for more business however, contractors should consider that some of the steps for promoting repeat and referral business, have a safety component.

Marketing for Repeat and Referral Business: Be Dependable.
Schedule your day so that you show up to the job site on time. This is basic. A dependable contractor is gold to a General Contractor. Keep in mind though, that getting from your yard or home, to the job site, requires that the sub-contractor navigate around ordinary traffic for the time of day which he’s traveling and that he also needs to negotiate road hazards – both take a certain amount of on-the-road time, to do safely.

If the contractor has not appropriately scheduled his time, he might find himself at the mercy of the traffic flow or stuck, due to vehicular accidents. These are predictable conditions which normal defensive driving might not be able to overcome to assist him in getting from one location to another on time. If it isn’t possible to get to the job site as scheduled; call before you head out, to warn the General Contractor about the delay, or push the arrival time back altogether. This is particularly important if you are delivering machinery or supplies which will be needed for the job to proceed. From a safety standpoint, consider that so many auto accidents occur when people are running late for an appointment.  It’s far better to be late than dead!

Communicate with your Customer – Regularly and On Every Aspect which Affect Them
From the General Contractor’s standpoint, communication issues are a consistent theme when considering the dependability of other contractors. Here are some things which a contractor can do to increase the General Contractor’s perception of their dependability:

Keep in mind that, for each project; you; as a contractor aren’t just working a job, you are running a business. If you want repeat work from the same GC or referrals; your business has to be run well.

Customer Relations: Watch the Budget
Another tenet of repeat and referral business, is customer relations. One of the biggest impediments to keeping good customer relations; is sticking to the budget for the job, while satisfying the General Contractor’s expectations for the best result on the job. 

The GC’s budget may balloon out for a variety of reasons: change orders, inspection code upgrades, inflationary pricing in material costs between the quoting time and construction, etc. Let’s focus on change orders for a moment. 

If there are changes to the specifications of the job at any point, or if an inspector requires that upgrades be made to comply with today’s code requirements as a result of the change; communicate, at that point – directly - how the pre-arranged budget may take a hit. When it comes to change orders, keep in mind that you are the construction professional for your specialty. Neither the GC, nor the ultimate customer; may have a realistic perception of the cost of all the materials involved to complete the change, or the time required for your labor force to work on that change. These combined costs alone, can drive up the price of the job as whole. If you have to pull laborers off other jobs, your costs can rise even higher.

As a contractor, you have to be clear on whether the budget on the job is negotiable upward from the very start. If it isn’t, then you will have to be realistic with that GC about how the change affects their budget. Money is always a difficult conversation with a General Contractor but a financial surprise, is worse!

From the start, you need to point out that costs are subject to increases for change orders, inspector approvals, materials and other related construction costs. Though you clearly state, in your written contracts, that additional specifications created by code requirements; are not covered in the cost; it is advisable to state it verbally as well.

Once again, remember that you are running a business and that you are seeking repeat work and referrals to keep the jobs coming in. Even though cost increases may be specified in your written contract or on the written quote; it doesn’t mean that the anyone has been clearly notified from their point of view.

Safety, Job Quality and the Budget: As cost rise, changes may have the effect of squeezing your budget on the job financially. If you can’t defray your costs back onto the job’s budget, where they belong; then having your portion of the job out of budget, may affect your ability to comply with safety regulations yourself such as purchasing personal protective equipment; or job quality. 

Always make sure you budget enough for safety and that the General Contractor understands there is a price for keeping the job safe and law suit free.  When serious incidents occur, everyone's costs go up, and the only winners are the attorneys. 

If necessary, caution the GC that other contractors might bid their job without the necessary safety measures in place, so the customer should make sure he or she is seeing 'apples to apples' bids.   

Job Safety Costs Money. Watch the budget, and the General Contractor will be more willing to partner with you on budget-friendly alternatives for the changes they wish to make.

The Quality of Your Labor

Behavior which might be acceptable between friends may be entirely unacceptable in a business setting. While your crew is on site, they are conducting business on your behalf. So you may wish to ask yourself several questions about your labor pool:

Basically, you need to consider if your labor pool appropriate represent the values of your business and the values of the GC. Your employees are the face of your business, especially when you aren’t there to supervise them.

The Perception of Dependability = Keeping to Set Policies + Customer Communication
Though each contractor wants to please their current customers, a delay on their current job it may affect the start dates of new jobs. This comes back to the perception of whether your operation is dependable.

Set Internal Policies for dealing with instances when Your Crew is Delayed on a Job: If your crew is delayed on the job; set an internal policy for dealing with the issue. Then communicate with your next job superintendent; rather than stressing your laborers to rush through jobs – a define safety issue.  On-time completion, should not occur based on cutting safety corners.  No amount of profit on the project is worth the life or well-being of a worker.   

If a GC presses you to complete more work once the quoted job is over, make sure that you set a policy for how to handle that as well. Though each contractor wants to please their current customers, it may affect the start of new jobs which are supposed to start on a pre-arranged day.

Once you set a policy about how to handle job completion delays; enforce it consistently. Then use technology to help you.

 Determine the best way to contact customers, from the get-go. Cell phones, e-mail and other communication technology; may then be used to your best advantage with the existing and new customers; when communicating how re-adjustments in your schedule, affects the start-date of their job.  But remember, when on the road; drive safely and only use these tools when it is safe and legal to do so.

Insurance

Purchase of Materials and Labor
Determine ahead of time, how you are going to finance the labor and material costs of the job. The start-up costs are the contractor’s biggest investment for each project.So review contractual  arrangements to make sure that you can operate under their payment schedule. Among the things which you have to consider are:

Quote the job appropriately from the get-go. Don’t employ short cuts on labor to cut costs. If a budgetary challenge arises, avoid offering lower material quality as part of the solution unless the GC fully understands what you are doing, the implications it has on the job; and has agreed to it – in writing.

The Customer Satisfaction Experience
Customer Satisfaction is the best way to assure repeat and referral business.  What is the best way to create this experience for your customer?

Customer satisfaction is most likely when contractors partner with their customers to achieve a constructed product: a collaboration between form, function, costs and maintenance.
Form: Set aside the basic form of the project for a moment and focus on the specifics. To the extent to which the contractor can perform their portion of the job, which fulfills the picture the customer had in mind; the General Contractor experiences satisfaction.
Function: This is the basis for everything. As a contractor, under another’s direction; your part will be to complete your work so that the final constructed product, operates well. To the extent that the form of the project allows it to function well, the ultimate customer will experience satisfaction. To the extent that the form fails to perform the function; you may need to collaborate with the General Contractor to bring the ultimate customer’s vision to reality.
Cost: Though the function is the basis for the project, the ultimate customer’s ability to pay for it all; determines if and when the project starts. It may even determine if, and when, the project proceeds to completion; in a way that the customer has envisioned. And that leads the discussion right back to the budget.
So watch for cost increases in the budget! This can’t be stressed enough!  If they are rising, and compromises in materials, the process or regulations must be made; communicate, communicate, communicate – verbally and in writing! If a change order is necessary, the ultimate customer will experience satisfaction when he feels that he was able to get the best function from the nicest looking form; which he could afford.
Maintenance: Be prepared to discuss the long term costs to keep the project looking nice, and working as the ultimate customer had envisioned; at a reasonable cost. Here is where your expertise is most valuable.
If a job looks pretty and works as envisioned today; how fast will the materials degrade in existing conditions? The ultimate customer may not be the best judge of materials or how they will perform over time. To the extent that future maintenance costs are low, or the ultimate customer can realistically afford to pay for future maintenance costs out of their anticipated future budget, they will experience satisfaction.

Think of customer satisfaction with the entire project, as an experience the ultimate customer has; as a result of your company’s specific work and the job as a whole, performed by the General Contractor and other contractors on the site.

When the ultimate customer experiences satisfaction, the General Contractor will experience satisfaction.

From that perspective, the General Contractor has to be satisfied with your business practices in two ways; with your company and the results of the entire job; each time you work with them. As a business, the only perception you can control however, is the one General Contractor has about your operation.

To the extent to which your crews can create the “customer satisfaction” experience while on the job; your company is most likely to get repeat and referral business, through:

To obtain more information about General Contractor Specifications for Site Safety Requirements , go to:

S.C.B.A. website: www.socalbuilders.org .
State Fund website: www.scif.com

Ask the Code Consultant
By Chuck Daleo

Q:  Can you explain where minimums and maximums in the Code come from? Fred W.

In past articles, I have written about minimums and maximums as they apply to certain parts of the Building Code.  I don’t remember if I explained the background of their genesis.  I probably didn’t so I guess this is as  good a time as any to TRY to take on this task.

I have to rely on my experiences in writing and voting on Code changes.  Because many of you did not have the opportunity to attend the Code change sessions, I will also try to explain how that process worked (or used to work).

I’ll give you an example.  For many editions of the Code, we couldn’t decide on how many dust producing machines could be in a use other than an H Occupancy.  At one time, the number was three.  I wrote a Code change that set a 1,000 cfm limit on the dust production based on the mechanical exhaust requirements for any wood-working machine.  The 1,000 cfm limit was discussed at length and adopted based on the combined opinions of those in attendance at the session.  There was no logic or scientific study to support the limit other than it seemed reasonable.  In future editions, this limit was removed apparently because building departments didn’t know how to determine the required exhaust rates for each machine. 

The change to increase the height of a stairway handrail from 34’ to 38” was based on a Canadian study that found that children were more likely to raise their hand to grasp a handrail in the same manner that they raise their hand to hold Mom’s hand.   So, in this case, we approved the change based on a scientific study.

When accessibility is a concern, there is the ANSI process that brings together a diverse group of individuals who have demonstrated expertise in the field.  They have the sane type of discussion and reach a conclusion based on real experiences or studies or opinions. 

For example, a MAXIMUM slope of 5% is allowed to have a path of travel not be called a ramp.  If the slope exceeds 5%, then it is a ramp and there are more requirements.  Where did the 5% come from?  I would guess that it came from the ANSI group.

Is it important to know where the minimums and maximums come from?  In some cases, it can be helpful especially if your job is a little out of whack because you exceeded a maximum or is less than a minimum. 

Let’s say you installed a bedroom window as part of a new room addition and the window sill height exceeded 44 inches, as required by Section 1029.3, by one-half inch.  The purpose of the requirement is to provide an occupant an emergency escape for the home in case of a fire.  Does the one-half inch make a difference in the ability to get out the window?  Maybe not, but if a person is injured or can’t get out in time and succumbs to the effects of the fire, the forensic analysis will spot that discrepancy and you might be held liable. 

When the Code states specifically minimums and maximums, you best adhere to those limits. 

But, there will be times when it is difficult and physically impossible to comply.  That is when you need to get a specific approval from the Building Official. 

For example, the Code requires, in section 3113.9, that a masonry chimney has a vertical clearance of two feet measured ten feet horizontally from the roof.  The purpose is to provide sufficient clearance above the roof to create a plume away from the roof.   Your new construction of the chimney ended up an inch shy of two feet.  Would it be reasonable to accept your job as built?  Does it meet the intent of the Code?  Is it a reason to cause a fire, especially now that roofing materials have to be listed as Class C or better? Is it a reason that the fireplace doesn’t function properly?

In all of the above cases, the answer would be no.  Could the inspector require you to add the extra inch? Yes.  But, there is the good chance that the Building Official could approve a code modification based on the actual conditions. 

There are many minimums and maximums that you just can’t play with.  Mainly because many of these limits directly affect fire-life safety issues.

The maximum height of a residential stairway riser is now 7 ¾”.  It used to be eight inches and that’s the way you built them.  The inspector missed it and you aren’t even aware that it was wrong.  Somebody falls down on the stairs get severely injured..  A lawsuit ensues and the stairs are measured and it is determine that the riser height exceeded the maximum.  You will likely be found to be at fault merely because the Code was violated.

The end result of this discussion is that however the minimums and maximums were developed, you best pay attention to those limits and comply.

First Aid

What would happen today, if there was an accident at your workplace? Would employees and management know what to do? Would the injured person get the best possible care?

When an accident happens, a first aid program that meets the requirements of the law and is tailored to the type and size of the workplace can literally make the difference between life and death, or between recovery and permanent disablement.

Employers should insure that all employees know where emergency information is posted at the work site. The emergency notice should state the phone numbers of the closest ambulance service, fire/rescue unit, police station, and hospital. The amount of time it takes to look up one of these important numbers can make a big difference to a seriously injured person. The location of first aid equipment and rescue equipment, should also be posted prominently.

All work sites should have a person with first aid or medical training readily available in case of an emergency. First aid equipment and supplies, including a variety of dressings and instruments, as well as an up-to-date first aid manual, should be stored where they can be reached quickly and easily in case of an accident. These supplies should be inspected frequently, making sure they are kept in sanitary and usable condition and re-stocked after use. Larger workplaces may need more than one, fully-equipped first aid kit.

In isolated work sites, emergency supplies and an action plan are especially important. At least one person trained in emergency first aid should always be on-site. If first aid is not given properly, it can sometimes hurt rather than help an injured or ill person, or even be harmful to the person giving the first aid. All workers should know who on-site is trained to give first aid, where the emergency first aid equipment is located, and what medical professional or medical facility should be contacted if a medical emergency should occur.

The above evaluations and/or recommendations are for general guidance only and should not be relied upon for legal compliance purposes. They are based solely on the information provided to us and relate only to those conditions specifically discussed. We do not make any warranty, expressed or implied, that your workplace is safe or healthful or that it complies with all laws, regulations or standards.

Primeros Auxillos

¿Que pasaría si el día de hoy hubiera un accidente en su lugar de trabajo? ¿Sabr’an que hacer los empleados y los gerentes? ¿La persona lesionada recibiría la mejor atención posible?

Cuando ocurre un accidente, un programa de primeros auxilios que cumpla con lo que requiere la ley y que esté diseñado según el tipo y el tamaño del lugar de trabajo, puede ser la diferencia entre la vida y la muerte, o entre la recuperación y la incapacidad permanente.

Los empleadores deben asegurarse que todos los empleados sepan dónde se ubica la información de emergencia en el lugar de trabajo. El aviso de emergencia debe incluir los números de teléfono del servicio de ambulancia, la unidad de bomberos o rescate, la estación de policía y el hospital más cercanos. El tiempo que se necesita para buscar uno de estos números importantes puede ser una gran diferencia para una persona gravemente lesionada. La ubicación del equipo de primeros auxilios y del equipo de rescate también debe ser un lugar destacado.

Todos los lugares de trabajo deben de contar con una persona capacitada en primeros auxilios o con conocimientos médicos para que esté disponible rápidamente en caso de emergencia. El equipo y los suministros de primeros auxilios, incluyendo diversos vendajes e instrumentos, as’ como un manual actualizado de primeros auxilios, se deben almacenar donde se puedan encontrar rápidamente y con facilidad en caso de un accidente. Estos suministros deben de inspeccionarse con frecuencia, asegurándose que se mantengan en condiciones higiénicas y utilizables, y almacenarse nuevamente después de usarlos. Es posible que los lugares de trabajo más grandes necesiten más de un botiquín de primeros auxilios totalmente equipado.

En los lugares de trabajo aislados, los suministros de emergencia y el plan de acción son sumamente importantes. Por lo menos debe haber en el lugar una persona capacitada en primeros auxilios para emergencias. Si no se ofrecen adecuadamente los primeros auxilios, algunas veces se puede lastimar en lugar de ayudar a la persona lesionada o enferma, o incluso puede ser perjudicial para la persona que ofrece los primeros auxilios. Todos los trabajadores deben saber quién está capacitado para brindar los primeros auxilios, dónde está el equipo de primeros auxilios de emergencia y a qué profesional médico o instalación médica hay que llamar si surgiera alguna emergencia médica.

The above evaluations and/or recommendations are for general guidance only and should not be relied upon for legal compliance purposes. They are based solely on the information provided to us and relate only to those conditions specifically discussed. We do not make any warranty, expressed or implied, that your workplace is safe or healthful or that it complies with all laws, regulations or standards.

Kalb's Q&A for Contractors
By David Kalb, President of Capitol
Services, Inc.
Kalb's Q&A for Contractors

There was a lot of news for California contractors coming from the latest CSLB meeting. New regulation may extend the definition of who is a ‘contractor’ and those waiting for LLC licensing now have a date certain to apply.  We begin with a contractor’s question that ‘qualifies’ as unusual…

Q: I have a client who is the sole Officer of a company that is going out of business due to some problem projects.  My client is NOT the Qualifier for the company; however, he has his own Class “B” license.  The company may file for bankruptcy (BK) protection but my client wants to be able to start a new company using his own license.  Is there any need for him to disassociate as an Officer of the current company?

A:  The only reason would relate to his current licensing issues.  If his present license ends up with a judgment or any disciplinary action, it could impact your client's ability to secure a new license (until the problem is resolved).  If his new license was already issued, and the present license was suspended, the new license could be threatened with an "associated License suspension".

The BK would likely resolve this but it adds one more layer to the process.  If your client is off the license prior to any judgment, he can likely avoid this "associated" problem. Of course, the CSLB still retains jurisdiction over the contractor and could pursue him regarding the ‘problem’ projects.

Q:  I was surfing the Internet and came across your web site and many of your prior columns. It was funny being told when I called your office that you were out all afternoon “attending a Contractors Board meeting”. This was after I had been watching the CSLB meeting streaming live for about 20 minutes.

My call was prompted by the Board’s brief mention of proposed legislation to regulate or license construction managers.  This item went by very quickly.  What can you tell me about the Board’s reasoning and discussion?

A: This is one of several legislative proposals discussed by the CSLB on December 6th at their bi-monthly meeting.  Code Section 7026.1 defines the term “contractor”.  An Appellate Court decision in 2009 found that someone acting in the capacity of a construction manager is not required to be licensed as a contractor.  Therefore, to address what the Board views as overruling their related 2008 ‘Precedent-setting Decision’ they’re proposing to add Section (f) which would expand the definition of a contractor by adding:  “provides a bid for a residential construction project; arranges for and sets up work schedules for subcontractors and maintains oversight of the project”. This would relate to home improvement contracts.

A second legislative proposal will seek to amend 7026.1.  According to the Board’s Staff report, “It has become commonplace for contractors – licensed and unlicensed –to attempt to circumvent Contractors License Law and Public Contract Code requirements by asserting they are not subject to licensure as contractors because they are ‘Renters of Operated Equipment’”.  An example would be a business that provides tractors, backhoes, or graders with a full crew to operate the equipment.

The proposed language would expand the definition of a contractor to include “vendors of operated equipment that exercise direction and control of work covered by this chapter”.

While knowledge is power, knowing where to go for the answers is half the battle. Get expert assistance immediately when you call 866-443-0657, email info@cutredtape.com, or write me at Capitol Services, Inc., 1225 8th St. Ste. 580, Sacramento, CA 95814. Research past columns at www.cutredtape.com.