Specialty Contractor Creation Program The Problem of Sustainability
Question: How can we assure that new contractors gearing up for ARRA Weatherization jobs survive inevitable cutbacks? The short answer is that we can not. The long answer is that we can help.
Contracting is a business. It should be managed like any other business. But frequently it is not.
The Contractor's Core Mission is Organizational Survival
Contractor Business Training Has Three Facets, Which Are Learning… 1. The role of contractor 2. The details of the specific construction field 3. To be a competent business manager
Self-Perception Matters: Which of these photos best represents a “contactor at work? ”
Role Confusion is the Contractor’s Greatest Long Term Risk The contractor uses their knowledge of: § Builder’s risk § Construction techniques § Material purchasing § Labor management § Marketing, and § Bidding, to: Complete, and get paid for construction activity.
The Contractor is not: A developer A construction worker Anybody’s savior § The Owner § The Developer § The Workers
Role Definitions Developers: § Are the connection between the project and the end user § Develop the project concept § Perform or secure project design services § Arrange the financing § Shoulder most project risk In Wx Jobs – the CAP is the Developer Labor Includes: § § Carpenters Wx Installers General Laborers Occasionally, the Contractor Labor: § Is employed when there is work § Is selected to match skills to specific job needs “Right Sizing” is the Key to Success
Community Action Team’s Wx Training Includes: Manufactured Homes Stick Built Homes Health and Safety Single Ply Insulated Roofing Systems Duct Tightening Under Floor Insulation Indoor Air Quality House Tightening Furnace Replacement Blower Door Lead Testing IR Technology Health & Safety Ventilation Attic Insulation Wall Insulation Under Floor Insulation Duct Tightening Furnace Replacement Blower Door Lead Testing IR Technology
Business Management Skills Strategy & Planning Marketing Bookkeeping Financial Management Bidding Crew Supervision Working with Lenders Required Skills Clatsop Community College’s Small Business Development Center Enterprise Cascadia (formerly Shore. Bank) Trainers & Program Partners
“So, what has all this to do with managing the eventual loss of ARRA funds? ” Everything!
Business Environments Always Change Good Management and Adaptability = Survival 1. Right Sizing - personnel scaled to match available work 2. Diversify – look for new, compatible lines of business 3. Minimize Debt – low balances, low payments 4. Build Profit – seek to maximize profits 5. Create Margins– always pay self less than available residuals. Build these up for bad times
Local Wx Partnership Seeks New Lines of Business Utility Rate Wx Financing § NGO “patient capital” programs § Utility-driven Wx programs Wx-Related Construction Work § EPDM roofing § Healthy Homes projects § Housing rehab projects Prospecting is part of the job
In the end, each contractor is the captain of their own fate. We must accept our limitations, calmly, if possible.
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