While describing the type of business he didn’t want to be,  my client threw out an abbreviation that I thought was golden: AFAB

Anything For A Buck

He understood that his recent pattern of doing anything for a buck (AFAB) was re-enforcing several poor habits among his team – himself included. It was teaching them to act like typical me-too contractors who fight clients and designers every step of the way over every little cost add as he had no other choice due to the manner in which the jobs ended up in their hands (by being the low bidder).

All the result of AFAB.

Companies that grow do not pursue AFAB. They identify profitable niches and customers they can excel with and build their businesses around those customers.

That’s what my client is working towards and that’s what you should be working towards too!

Just finished my three week preparation for the LEED AP test. Pretty much had to put everything aside, including launching our new private club, to take my shot at the last opportunity to become a full LEED AP “easily.” I got lucky and passed. Not sure how.

Never have I heard of or experienced such a difficult test that so many people have passed with no intention of putting their certification to use.
Hundreds, probably thousands, of contractors have passed down the edict that their staff shall earn their LEED AP. For the most part, they are using them as a marketing tool as most of the certification processes will probably be led by design consultants.

I plan on putting my certification into action at first chance just to stay ahead of the game.

LEED is going to bring tremendous new opportunities and challenges to your business.

Don’t get left behind.

The last few weeks I’ve been cramming for the LEED Commercial Interiors AP exam. It’s a bear of material to memorize. It’s also turning out to be information well worth knowing.

Rest assured, over the next few years green building construction as defined by the LEED certification process is going to be a Tsunami of change crashing upon the construction industry.

A huge chunk of public work is going to require LEED construction techniques. I’ve been hearing rumors about pressure being applied to Fortune 500 companies who receive government contracts. Don’t be surprised if several of the techniques work their way into building codes.

No trade is going to be left untouched. My former trade is one that is suffering some of the most dramatic impact.

Prior to jumping sides, I was a consulting mechanical engineer who designed, commmissioned, and retro-commissioned many a mechanical system. I often went into the field to take performance data on existing sytems, designed retro-fits, verified system start-up, tested control systems, and tuned control loops. Many of the services our select manufacturing clients valued – and no commercial clients ever were willing to pay for – are now being required by LEED.

To say that I am shocked and delighted would be a grand understatement. The positive impact on mechanical engineers, mechanical contractors, test and balance contractors, and operations and maintenance staffs is almost mind-boggling. Finally, buildings and their occupants will receive mechanical systems that operate as they should to maintain comfort and health with minimal energy consumption.

Your trade will be touched. Bank on it.

Your costs will rise as productivity drops, materials cost more. material handing consumes more time and the volume of paperwork sky rockets.

My recommendation is:

1. Learn the LEED requirements that apply to you.

2. Take on a couple of small LEED projects to get a feel for the change in job costs.

3. Build your strategy to take advantage of competitors who fail to respond to the rapidly changing landscape.

Good luck.

Ron

In case you haven’t heard contractors have a new political spokesperson.

“Joe the Plumber” was tossing a football in the front yard with his son while presidential candidate Barack Obama was canvassing the area where he lives. Obama approached Joe and solicited his questions. Joe is a plumber in Ohio who desires to purchase the company he has worked for for many years.

The rest is history with Joe making appearances on all the prominent talk shows and becoming a focal point of the third debate. If you’d like to see some of his interviews they are easily accessible by doing a “Joe the Plumber” search on the Internet.

First I’d like to start by saying that I think this guy “Joe the Plumber” is pretty bright and intuitive. Some pundits say that he has articulated some of the issues better than any of the candidates.

Joe asked Obama a fair question about how his policies would affect him if he purchased the plumbing business he was working for. Since that debut Joe “the Plumber” Wurzelbacher has been launched in the national political spotlight for both the Democratic and Republican campaigns.

But let’s not forget the real issue! Taxes!

Yes, I believe that taxes for small businesses are too high. However, I would never advise a contractor to stop growing their business to avoid paying more taxes.

Go out and grow your business by hiring the right people, getting the right customers, acquiring the proper tools and equipment to complete the work efficiently and profitably; and retain a good certified public accountant to help you with your tax planning.

With proper advice from a sharp accountant you should be able to retain at least sixty cents for every one dollar you earn. So go out and get more sales to make more money! By the way a side benefit is that you will stay in business longer.

The government needs to be accountable to all taxpayers for how they spend our money.

I’m not sure that “Joe the Plumber” represents the majority of contractors since he doesn’t even own a business today. But if and when Joe does by that plumbing business I’d rather that he decides who gets raises based on their contribution to the company and the merits and he puts into place rather than the government spreading his company profits equally to individuals taxes payers because they fall into a certain tax bracket.

Best of luck with your business,

Guy