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. In the quest for more business, 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 your initial appointment with the client, on time. This is basic. A dependable contractor is gold to a customer. However, getting from one location to the client’s property requires that the sub-contractor negotiate road hazards – and that takes time. If the contractor has not appropriately scheduled his time, he might find himself navigating the traffic flow or vehicular accidents; which normal defensive driving might not be able to overcome. If it isn’t possible to get to your appointment on time, call before you head out to warn or push the appointment time back altogether. If that isn’t possible, arrange the appointment for another day.  For your part, consider that so many auto accidents occur when people are running late for an appointment.  It’s far better to be late than dead!

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 customer’s budget, while satisfying their expectations for the best result on the job. 

The customer’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.  If the customer changes 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. Your customer is not. They may have absolutely no 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. 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 customer’s budget is negotiable upward from the very start. If it isn’t, then you will have to be realistic with that customer about how their change affects their wallet. Money is always a difficult conversation with a customer but a financial surprise, is worse!

Remember, as cost rise, it may have the effect of squeezing your budget on the job financially. If you can’t defray your costs back onto the customer, where they belong; having the job out of budget, may affect your ability to comply with safety regulations yourself, such as purchasing personal protective equipment.  Always make sure you budget enough for safety and that your customer 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.

Job safety costs money. Watch your customer’s budget, and they will be more willing to partner with you on budget-friendly alternatives for the changes they wish to make.

Set Internal Policies to Deal with Special Circumstances: If 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 the customer; rather than stressing your laborers to rush through jobs – a define safety issue.  Don’t base on-time completion, on cutting safety corners.  No amount of profit on the project is worth the life or well-being of a worker.  

The Perception of Dependability: Keeping to Set Policies + Communication With the Customer

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.

Once you set a policy about how to handle job completion delays; enforce it consistently. Use your cell phones, e-mail and other technology; to communicate with the existing and new customers about how re-adjustments in your schedule affect their job.  But remember, drive safely and only use communication tools when it is safe to do so.

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:  My inspector would not approve my work because my materials did not have an up-to-date ICC listing.  He said that the listing referred to the UBC and not the ICC.  Is this correct?
Don H.

There has been an on-going problem with the out of date listings of building materials.

The older ICBO listings for materials were used by building departments to approve the work.  The specifics of the listing were enforced to the letter, in most cases. If the nailing pattern was 6d at 6 inches, then that was what the inspector typically enforced.  Anything different and the inspector’s duty was to deny approval and cite the problem in a correction notice.

It is no different today.  The installation of materials must still adhere to the listing.

The current problem is that many materials are not current with the “new” ICC codes.

It is my understanding that there is a tremendous backlog in the review of applications by manufacturers for a listing.  The approval process requires an application with supporting technical data and adherence to the ICC codes.  The application is reviewed by the ICC Evaluation Service technical staff and is further reviewed by the ICC Evaluation Committee. 

hese reviews take time and have an associated high cost for the manufacturer.  I have been asked by a few manufacturers to assist with the review process and depending on how many committee meetings I have to be present at can drive the costs upward so as to seem unreasonable.  Consequently, I have not taken on any of these potential clients.  In many cases they just handle the process themselves without any outside help.  It still takes a lot of time.  I have been told that the review takes at least six months.  This is where the problem arises. 

Even though the IBC has been published since 2000, there has been a delay, for whatever reason, in manufacturers submitting for an updated listing. 

To solve the problem, there has been an acceptance of “LEGACY” reports of listings.  In this case, LEGACY means that the older listings could still be accepted by building departments.  I am in total agreement with the use of Legacy listings.

Let’s say that a metal joist hanger was good enough under an ICBO listing and the manufacturer’s standards were consistent with that listing why wouldn’t it be acceptable today?  The only difference could be that the listing does not include the language that it complies with the 2009 IBC.

However, there could be materials that the Legacy listing does not conform to new engineering standards.  I know of a few but I won’t mention them because I don’t want to banish them from use. 

In these cases, it would be incumbent upon the building departments to consider the differences and to make an educated determination on whether to accept the material even though it is in the process but has not yet received an ICC listing.  Please remember that a listing is a service.  It allows a material to be used in accordance with the listing and is usually accepted by an inspector.  The listing gives the contractor an assurance that the work will likely be approved unless the material was installed incorrectly. 

Getting back to Don’s question, he needs to convince the building department that the materials he is using are safe to use and will perform in the proper manner. 

In his case, there is an engineer of record and I suggested that he request the engineer to give an opinion that the materials will meet the requirements of the design.

In my opinion the inspector was only “half right”.  If you are going to call out some materials then why not call out all materials that need a listing?  You contractors probably don’t want the hear that!!

It is probably a prudent thing to discuss the use of a Legacy listing beforehand with the inspector.  You will probably need to get an update from the manufacturer that it has submitted for a new listing but there is a time delay in getting it finalized. 

Because of the time delay in the ICC evaluation process, there are other agencies that are offering listing reviews.  You best be careful if you are relying on a listing other than ICC.  Many building departments are “uncomfortable” with accepting listings from these other agencies.  The main concern is that they cannot be certain that the testing and review is within acceptable standards.

Close Calls - Take a Close Look at Close Calls

A “close call” or accident without injury is easy to shrug off and forget. But, there is a danger in brushing off accidents that don’t hurt, harm or damage. When a “close call” happens, it should immediately send up a red warning flag that something was wrong, unplanned, unexpected, and could happen again. The next time it happens, it could result in serious damage, injury or death.

For every accident there are usually several contributing factors, most of which can be controlled. The best way to prevent the reoccurrence of an accident is by looking at those “close calls.” By investigating the root causes of an accident, steps can be taken to eliminate the hazard and improve the work system.

Sometimes there are multiple causes for an accident involving: equipment (unguarded machinery), environment (poor lighting or noise level), people (procedures not understood or not followed) or management (allowed shortcuts). Don’t rush to judge. Examine the facts and find what’s missing. Look for immediate and underlying causes. An immediate cause may be an unsafe condition like a mechanical failure or it could be an unsafe action by an employee. The underlying cause could be poor machine maintenance, a missing guard, a crowded work area or a lack of training.

All incidents should be reported to the supervisor so that accident/injury report forms can be completed. Once an investigation is completed, solutions should be sought to prevent the accident from occurring again. Solutions may involve engineering controls, administrative controls, additional training, or increased communication between management and workers.

Workers should daily inspect the work area for unsafe conditions or unsafe actions and, if found, report them to the supervisor. Hazard awareness is key to preventing accidents before they happen. Take steps to eliminate hazards as soon as they are discovered. Learn the real lesson from close calls. They can happen again and again until they cause injury, so tell your supervisor about every accident, no matter how minor it may seem at the time. You never know when an incident may be repeated and result in an injury or even death.

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.

Preste atención si se salvó “por un pelo”

Es fácil olvidarse de los accidentes que casi ocurren o los que no resultan en lesiones. Pero existe peligro en hacer caso omiso de accidentes que no resultan en lesiones o daños. Cuando esto ocurre, debe inmediatamente alertar que algo anda mal, estuvo mal planeado u ocurrió inesperadamente, y que puede volver a suceder. La próxima vez que suceda puede resultar en daños, lesiones o muerte.

En cada accidente generalmente existen varios factores contribuyentes, la mayoría de los cuales pueden controlarse. La mejor manera de evitar que vuelva a ocurrir una situación peligrosa es examinar esos accidentes de los que se salvó “por un pelo”. Haciendo un examen de las causas básicas del accidente se pueden tomar medidas para eliminar el peligro y mejorar el sistema de trabajo.

A veces existen causas múltiples en los accidentes, que pueden incluir: equipos (maquinaria sin resguardos), ambiente (mala iluminación, alto nivel de ruido), personal (procedimientos que no se han entendido o no se observan) o gerencia (permite uso de métodos no autorizados). No se deben hacer acusaciones instantáneas. Examine los hechos y descubra lo sucedido. Busque las causas inmediatas y subyacentes. La causa inmediata puede ser una condición insegura, tal como una falla mecánica o una acción insegura por parte de un empleado. La causa subyacente puede ser mantenimiento incorrecto de una máquina, un resguardo faltante, un área de trabajo con demasiada gente o falta de entrenamiento.

Todos los incidentes deben reportarse al supervisor correspondiente para que se llenen los formularios de reporte accidente/lesiones. Una vez terminada la investigación, se deben buscar soluciones para evitar que el accidente pueda volver a ocurrir en el futuro. Las soluciones pueden requerir controles de ingeniería, controles administrativos, entrenamiento adicional o mejores comunicaciones entre la gerencia y los trabajadores.

Los trabajadores deben inspeccionar diariamente el área en búsqueda de situaciones peligrosas o acciones inseguras, y si descubren alguna, informar al supervisor correspondiente. Estar consciente de los peligros es la clave ene la prevención de accidentes antes de que sucedan. Tome medidas para eliminar los peligros tan pronto como sean descubiertos. Aprenda su lección de los accidentes de los que se salvó “por un pelo”. Éstos pueden suceder una y otra vez hasta que causen una lesión; por eso se debe informar al supervisor sobre cualquier accidente, sin importar lo insignificante que parezca ser en el momento de ocurrir. Nunca se sabe cuando un accidente pueda repetirse y resultar en lesiones o aún la muerte.

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

Parting may be ‘sweet sorrow’ but it’s also more paperwork for contractors. Nothing ‘ventured’, nothing gained.  As a license qualifier departs it can also open up new avenues of individual opportunity. Another contractor faces a dire situation, and last I want your feedback to share…

Q:  I am in the process of leaving my company.  What steps do I need to take to remove myself from their license as I was the Responsible Managing Employee (RME) for the A & B. Being that I took and passed the tests is it possible for me to carry my own license forward into my next venture or do I need to re-test?  Please let me know how to go about this.  Thank you

A:   The first step would be to complete and file a Notice of Disassociation to remove yourself from your present license.  Since the license belongs to the corporation not you as the RME, you can take these classifications anywhere you want; however, you may not take the license number.   If “your next venture” is to operate as a Sole owner, you’ll need to apply for a new original license.  If you intend on qualifying as a RME on another corporation, you’ll need to file two applications for additional classifications.  Either way there is no need to re-test.

Q:  I have enjoyed reading your Q&A in the 'California Builder & Engineer' for many years.

About 10 years ago I was forced to bankrupt my Engineering Company.  I also had an unrelated contracting company.  One of the listed creditors was a bank.  About the same time as I was making this filing, a company purchased what they thought was a recoverable obligation. They either did not know or did not care if they were violating an automatic stay.

Nevertheless, they failed to file a demand under a list of creditors and proceeded to secure a judgment from a Court.  I knew nothing about the court action and was not served notice of the hearing. This is by way of background.

I am upset at the actions of the Contractors Board since they will not issue my 'pocket card', even though my fees are paid, and I requested 'inactive' status.  After the Contractors License Board had deposited my renewal check, they sent me a letter saying they could not issue my pocket license, which is required when contracting.

Section 7071.17 of the B & P Code regarding judgments states "construction related".  What does a credit card issued to Engineering Company have to do with my contractor’s license?  Any suggestions on what to do?

A:  Your license has been renewed Inactive until 2013 but is suspended due to “an outstanding civil judgment”.  I do not know why the Board would hold back issuing a pocket card with an “inactive” license.  Conversely, with an Inactive license the pocket card is not critical since you cannot do any contracting.  

I would suggest providing the CSLB with a copy of your BK, which lists the applicable bank creditor?  Often this is the only thing the Board looks for.  I do not believe it matters that someone else purchased the asset; however, I would consult with a bankruptcy attorney to see if this is an issue.

If this doesn’t work you might try making the argument that “a credit card issued to an Engineering Company” is not “construction related” however, it’s up to the CSLB to determine what does and does not fall into this category.

CONTRACTOR ALERT:  If you have called or emailed the Governor’s Office regarding the CSLB hiring freeze, please contact me with the response you have received.  Hardest hit are the Board’s enforcement efforts against the underground economy and the “phone units” ability to respond to everyday calls from contractors and consumers.

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.