Financing Challenges Many Construction Companies Face And How to Deal With Them

Every construction company has daily charges and long-term expenses that have to be catered for. With this need to address the charges also comes stalled projects that could not get fully financed due to the lack of enough money or issues with clients not submitting the needed amounts on time. When you are facing slow client payments, you need to consider alternative methods to keep key projects moving, otherwise it might prove difficult to keep the business afloat. If you are among construction companies that have financing challenges, you need to take this word from an expert to help your business claim its ground. Here is how to deal with the challenges.

Addressing slow owner payments

Generally, construction projects are expensive investments and owners have to submit the required monetary support for the projects to proceed. But this is not always the case as some of them opt for slow payment while others realize too late that they did not prepare adequately. Once the facility is constructed, your company incurs a huge short-term cost with the benefits expected being long-term. This creates a situation where most owners cannot get money to pay in one lump sum, which leads to slow client payments that could lead to financing problems for the company.

To address this challenge, you might want to consider factoring. This is where you invite factoring companies that buy your accounts receivable and give you immediate access to cash. What factoring does is take delinquent accounts off the liability list of your company, and this allows you to meet any cash-flow needs you have without the need to apply for a loan. It will help solve your problem more smoothly and within a shorter period of time.

Interest charges on loans

Construction companies that are suffering from large financial problems often don’t have the credit required to cover the payment delays. Most contractors lack sufficient capital assets, and this triggers loan companies to view them as a credit risk. Large projects come with a bigger interest due to the risk involved, and premium charges in this case can lead to a bad debt and financial pitfalls for the company.

This is where the advice of debt experts like Nationwide Debt Direct comes in handy. Instead of opting for a loan to finance the project, you might also consider factoring, which is a boost you won’t need to repay. Don’t add debts when the company is already struggling to find a solution.

Cost overruns

Each construction projects comes with its pitfalls and some of them are costlier than others. In the event the unexpected occurs, expensive delays can be experienced and in worse cases losses. For costs beyond the original estimate, you need to come up with a better way to finance them as this is where loss of money occurs most. The best solution is to steer clear of expensive cost overruns by ensuring problems are addressed as soon as they show up and reviewing estimates carefully before embarking on the project.

Drops in demand

Those who have worked in the construction industry can tell that demand can be cyclical in nature and the market can drop or rise from one year to another. What this does is create financing problems that construction companies have to face because the flow of income is not steady yet expenses remain high. If your construction company finds itself in a business slump, you should consider getting a quick cash float that should cover the daily expenses of the business until the next peak arrives. Selling outstanding accounts receivable to a factoring company could be a solution to help lift the pressure to repay off. For more support, talk to experts like Nationwide Debt Direct.

Why Software Analytics Is Important In The Construction Industry

Big data analytics have come as a viable tool in the construction industry that experts are now embracing to lead better teams and to strategize for increased efficiency. The ability to sift through a lot of information to get results that are relevant is beyond most human skills, but with software analytics, this is made easier and faster. Construction companies, therefore, are able to save a lot of time by sifting through large amounts of data to get relevant information that can help them to implement different actions. This allows them to lay more focus on events and projects that matter than worrying about IT issues.

Problem solving

One of the biggest incentives for having software analytics is that construction companies are able to solve complex problems with Ad Hoc Reporting. For these companies to be successful in their problem solving processes, they need to collect the right data and in an organized manner that is searchable. Software analytics allows them to accomplish this effectively as the data returned is accurate and sifted for errors, which again eliminates the need for construction companies to spend a lot of time trying to validate data.

Risk prediction

Additionally, big data offers you the unique ability to gather insights that allow you to make improvements to your systems to prevent risks. You can easily detect errors before they happen and finding opportunities for optimization that is focused on the future is easier. You can get long-term improvements if you use software analytics. The accuracy at which software can give information is beyond human capabilities and this could be the reason most companies that use software analytics have been seen to achieve better results than their counterparts that don’t use analytics.

Performance evaluation

You also want to know how your company or its departments have been performing over a specified period of time. It could take a lot more time to implement this process if one chooses to follow traditional methods, but with software analytics, you get real-time results when monitoring performance. You could even make adjustments to the software to receive reports after every specified period of time, so you are informed about changes in different parameters in a more dynamic manner.

Construction companies that keep large amounts of data would find it challenging to assess their performance in the absence of analytics software. Knowing project profitability and efficiency is important when making decisions and these are reports you will easily get with software analytics.

Track assets and construction equipment

Apart from leading experts in decision making processes, software analytics also helps in the monitoring of construction equipment and assets. Construction companies spread most of their assets and equipment geographically and this could be a source of disaster if not controlled. You need to know which equipment or asset is where, so having a monitoring system that keeps records and gives information about assets and equipment is necessary.

Simulation

The more data you have, the more potential you have to make remote predictions about construction site limitations and possibilities, and this could help you to plan accordingly.

Rocco Basile Director at Avo Construction

 

Rocco Basile graduated from Xaverian High School, New York University in 1990 and attended graduate courses at St. John’s University. After years of success working in real estate he founded Avo Construction. Since he was born in a construction family, he has had many years of experience in the construction industry. At Avo Construction, Rocco supervises all aspects of the Ground-Up Construction and Interior Renovations departments.

 

On the Benefits of Streamlining Certain Aspects of the Construction Process

proposable construction process

 

There is a lot that is demanded of all construction professionals throughout the process of building a home, including a tremendous amount of paperwork concerning permitting as well as a wide range of other requirements that may differ based on the specific geographic location. Due to the time-consuming nature of some of these requirements — paperwork or otherwise –many builders are consistently on the lookout for any way possible to streamline their operations without having to sacrifice the quality of the construction.

Proposable.com’s templates — including everything from a software development proposal to straightforward sales proposals — may provide a means through which construction professionals can use their time more efficiently with regard to this critical component of the initial building process. For professionals that find it difficult to remain attentive to the sales proposal process while also working on meeting all of the other various professional responsibilities that demand their attention during the actual process of building a home, a comprehensive sales proposal system may prove to be an ideal solution for streamlining their business operations.

Of course, streamlining the sales process also means that builders are able to devote more of their attention to meeting the specific needs for their clients, something that is especially critical for custom homebuilders. Any opportunity in which it may be possible to streamline certain processes that enable a more client-centered approach should be recognized as incredibly valuable for so many reasons.

Value-Adding Home Improvement Projects Not Always Associated With Curb Appeal

David R Gray Jr home improvementThere is a multitude of reasons why homeowners take on all kinds of home improvement projects, with many citing a simple desire to improve the quality of their surroundings while others just enjoy spending a weekend working with their hands in order to create something unique. Though the reasons are quite varied, homeowners are most likely to at least reference the fact that the projects they undertake will add value to their home in some way.

As David R. Gray Jr. would likely point out, this common form of reasoning often leads homeowners to select projects associated with aesthetic improvements, especially when it comes to curb appeal. Curb appeal projects do offer a significant return in terms of the real estate value added, but homeowners should be careful not to overlook the sizable return on investment made possible through a host of other possible options.

Installing insulation in an attic is perhaps the best example of a value-adding home improvement project that is commonly overlooked, but it is one of the few projects that result in an immediate increase in real estate resale value of well over 100 percent of the cost of the project. While installing attic insulation may not seem like the most enjoyable weekend project, it is certainly one of the best when it comes to adding value to a property.

Behrman Communications on the Importance of Building a Strong Team of Professionals

Health_professional_answers_questionsAnyone in the custom construction industry is already keenly aware of the inherent need to first focus on building a strong foundation and infrastructure in order to create a home that is truly built to last. For Behrman Communications, a public relations and brand building firm helmed by founder Nancy Behrman, a strikingly similar notion can be easily applied to businesses in any industry, though not in a literal sense as in the construction industry.

In industries such as the one that has benefited so tremendously from the development of the Behrman PR strategic approach to brand building, the concept of a strong foundation and infrastructure has far more to do with human resources than anything else. This is why attracting and retaining the top professional talent is so very critical across all industries, particularly one in which personal relationships and exceptional communication skills tend to play such a major role.

One of the ways in which companies can ensure they are attracting and then retaining top level talent is to ensure that the lines of communication remain open among all team members and that organizational goals are clearly outlined and adhered to by all personnel. This creates a stable and consistent environment in which all team members are able to thrive in their responsibilities and to contribute to the betterment of their colleagues as well.

Applying Behrman PR Strategies to Home Improvement Projects

Regardless of the size and scope of a home improvement project, the strategies utilized at every stage of the project will have a sizable impact on the degree to which the final result is deemed a success. While it is not all that common for public relations and brand building strategies to be applicable to home improvement projects, there are many aspects of the Behrman PR strategy that can help anyone carrying out any such project, independent of whether they are a homeowner completing a minor project or a professional contractor tasked with carrying out a major one.

Nancy Behrman, the founder of Behrman Communications, has enjoyed a distinguished career in the public relations industry and recently celebrated her company’s 30-year anniversary, which is why her insight and expertise regarding PR strategies is so widely respected among her industry peers. In fact, it is those specific PR and brand building strategies that are believed to potentially yield an exceptional benefit for those in the home improvement industry or those simply seeking to complete a home improvement project in a manner that is indistinguishable from the efforts of a professional.

According to those who have applied some of the strategies utilized by Behrman’s immensely successful public relations and brand building company, the results they were able to achieve were deeply reflective of the brand building company’s reputation as one of the most creative and insightful companies operating in the industry today. Due to the fact that the Behrman PR strategy is known to rely on a detail-oriented approach that evaluates the individual goals of each client in order to yield the greatest potential impact, the application of these strategies in construction projects has proved to be incredibly valuable on a number of distinct and critical levels.

1 Stop Maintenance Reviews Home Builder Ralph Slaske of Slaske Builders

Recently, the news and review group known as 1 Stop Maintenance decided to offer a job to Ralph Slaske of Slaske Builders, or rather, the 1 Stop Maintenance CEO did. The long story short, The CEO of 1 Stop Maintenance needed a new home up around the Toledo, Ohio area and from reading nothing but positive reports of Mr. Slaske on social media and blogs, decided to offer a job that Mr. Slaske couldn’t refuse.

It was an early Monday morning, about 7am I believe, when I gave Ralph Slaske a call and said, ‘hey, I have a job for you if you’re interested. I’m needing a new home and you’re the only one I trust to have it materialize,'” said 1 Stop Maintenance CEO. “We talked for a bit and he asked a me a few basic questions. Mr. Slaske then said he would like to meet in person with me tomorrow morning after he gets all the details squared away. At that point, we would be able to discuss details more in depth.”

While the CEO of 1 Stop Maintenance was waiting for their planned meeting, “I was doing my homework and making sure all the details I had covered on the phone with my new client were covered before I met with him,” says Ralph Slaske. The next morning, the two met and Slaske got straight to work asking questions about the new home, the dimensions needed and even building materials to be used in the product.

“Ralph Slaske taught me a lot about working with clients. I suppose in this case you could say this is something one businessman has taught another. He made sure all my questions were answered and checked in with me frequently to ensure I was taken care of. No questions, comments or concerns went unanswered. I would have to highly recommend Slaske Builders to anyone wanting a custom home in northern Ohio.”

 

Getting the Most Out of a Custom Construction Project

Getting the Most Out of a Custom Construction ProjectLots of builders advertise custom construction projects that ultimately turn out to be what is essentially a cookie-cutter design that has just a few customizable options. While this may technically be “custom,” this is rarely what a customer expects when they request a custom design. This can make it difficult for a prospective homebuyer to get the most out of their construction project, but a few simple strategies can help ensure that a custom project is truly unique and designed according to the precise specifications of the customer.

“People tend to be far too deferential when outlining what they have in mind when it comes to a custom home,” says Arturo Alvarez Demalde. “They may say exactly what they want when they first meet with the builder, but are then easily convinced to take a different approach by a builder who is looking to make the project easier and more cost-effective. This only benefits the builder and not the person who is spending six or seven figures on a custom homethat they intend to make their residence for the next several decades.”

Randi Glazer would likely tend to agree on this particular subject. Homebuyers need support while buying a custom home, which means that they should be reminded that they are spending a lot of money to build the home of their dreams. During this process, the homebuyer should be assertive and remember that it is not their responsibility to be accommodating to a builder. The homebuyer can always consult other builders willing to design a truly custom home, or they can stand firm that a custom home should be custom in the truest sense of the word.

Ralph Slaske The Hardest Job In Construction

I think I’ve probably done just about every job there is in the construction field and as I sit here thinking, I’d have to say framing was the hardest part of construction. If you were to ask anyone with little knowledge in construction about framing, they would probably say framing has something to do with the foundation of the structure that is being constructed. Framing, is the basic building skill construction today. The term, “framing,” also is called, “rough woodworking,” and this skill is done frequently in near about every project that deals with remodeling. Sounds like fun already, doesn’t it?

Timber is so common and it’s the most used material for a framing job because you can find it just about anywhere. Already, you can see this is a very heavy job. The lumber is also easy to work with and compared to other materials that could be used in framing, it’s not nearly as costly. Working in framing also means you have to know your trees and what they are good for, just as a survivalist would. A survivor in the woods knows that if it’s cold and he’s surrounded by pine trees, he’s out of luck because pine makes terrible firewood but a good fire starter. Pine, however, is a great source of lumber for framing and so is hemlock. If you have those nearby, you’re good to go.

Trees aren’t the only things used to frame. Concrete is commonly used because it can be made on the spot and delivered if need be. Steel and bricks are materials that are used, too. These materials are important to use rather than just the lumber because they can support more weight. However, things get expensive when you are working with heavy materials.

Just thinking about framing and writing about it makes me not want to ever do it again, but whatever puts bread on the table, right? Since I’ve started my blogs, I could switch gears and teach people how to make money online, but I am too passionate about construction and my business to do that.

Long story short, although it’s a bit late for that, framing is an incredibly complex, yet highly important job. As stated before, it’s what makes remodeling possible.