Masonry Magazine August 2006 Page. 39
It's really difficult for someone to write a scathing letter to your company, complaining that you are being way too helpful!
Within two days I had my change order! Coincidence? Very recently, I had an incident with a school board. I was pretty sure that the CM had dropped the ball on a billing to the school district. They were a few months late. This had happened before. So I let the CM know how displeased I was; I told him that I understood that the school district had sat on the change for a couple of months. After some back and forth, I realized that this CM really needed our "help," and I told him so. I sent a letter to him, with a copy to the district, explaining how this situation had occurred over the life of the project, and that something had to change. I also explained that I was willing to go before the board at the next meeting and share with them some of my experiences. That way they could benefit from them, we could learn from each other, and we would help to improve the situation for the contractors coming after us.
Predictable: "You really don't need to do that." Me: "I don't mind." "I think we have it figured out now; it should be straight by next month." Me: "That's okay." "It's not really necessary." Me: "I'm still willing to help. I'm available Thursday night."
Funny thing: Both the school district people and the CM told me the same thing! Even funnier: the situation was resolved immediately, and I didn't have to give up my Thursday night!
I realize that your situation is different. Everyone's is, so you have to just learn from my experiences and apply them to your own. But here's the key to all of this stuff: keep your cool; you are never threatening, you are a "helper." And it's really difficult for someone to write a scathing letter to your company, complaining that you are being way too helpful! This stuff works for me, and it should for you, too.
Gary Micheloni is a project manager, author, consultant and speaker. He can be reached at coachgary@fullcontactPM.com. Copyright © 2006, Gary Micheloni and Full Contact Project Management
COACH GARY'S PLAYBOOK:
Coach Gary has something special for his readers. Get a free audio download summary of his new book, "Get Paid for a Change!". which is now available for purchase as both an e-book and in print. Also, for the blog link and other valuable and "helpful" stuff, go to the web site: www.fullcontactPM.com.
Pay Your Bills Before They are Due
MASONRY NEWS CONTRACTOR TIP
Is it better to wait full-term to pay your bills, to squeeze a few more days out of paying a vendor, maybe eam a little more interest on your money? Or is it better to bite the bullet and pay your bills even before they are due? At Lang Masonry, I have found the contractors who pay their bills on time get preferred treatment in material delivery.
Imagine this: You're a dispatcher at a local block supplier and you have 12 loads of block to get out today. Who will you deliver the first loads of block to? Obviously, the contractor who pays their bills the quickest will get first priority. That's what I would do if I were the supplier, and whether we realize it or not, it's what our suppliers are doing now.
Or, maybe there is a certain type of block that is really low in stock. A contractor who pays their bills on time needs this block and so does a contractor who has strung his account out over 60 days on his past orders. Who is going to get that block? The slow-pay contractor will be the one waiting
As contractors, we need to consider the whole picture when conducting our business. Do we want to call to see where the materials are and get the normal excuses, ones like: you didn't get your order in on time, one of the trucks broke down, or a driver didn't show up today? This waiting on materials costs our companies thousands of dollars each year. In fact, lost production time waiting for materials costs us much more than we could possibly save on interest by holding our suppliers money a few extra days.
Let's look at this from the supplier's standpoint. Isn't it fairest that whoever takes longer to pay their bills should wait longer to get their materials?
At Lang Masonry Contractors, when we bid a job we factor in how quickly we will get paid into our bid. If we expect to have to wait on our money, we price it higher to the owners or general contractors who pay their bills slower. I'm guessing the material suppliers do the same thing This means, if your not paying your bills on time, you are probably paying more for your materials without even knowing it.
And how about the price we pay for equipment? Equipment dealers sell equipment at a much lower price when they know they can count on receiving their money at the end of the month. This is almost like waving $100 bills in their faces.
At Lang Masonry, we don't wait until bills are due to pay them, we process and pay them as we receive them. This saves us having to pay our accounts payable department to sift through late notices. Many suppliers offer a discount for paying early as well.
So the next time your foreman calls because the supplier didn't show up and now his men are standing around waiting on materials, check with your accounts payable department. Make sure they are paying your bills on time. I think you will find a direct link between how you pay your bills and how you receive your materials. You can make your company more efficient and profitable by paying your bills earlier. In tum, it increases your credibility and also allows you to take advantage of any discounts offered by suppliers.
Damian Lang is the author of the book "Rewarding and Challenging Employees for Profits in Masonry." To order a copy of his book, or to attend one of his seminars held specifically for mason contractors, call Kerri Huck at Lang Masonry at (800) 417-9272.
Provided by Damian Lang, President of Lang Masonry Contractors, Inc. and EZ Great Corp.