Learn More
This is where PayCrew's owners share what they've learned in their combined fifty years of industry experience.
June 1, 2015
The construction industry is the last to keep up with technology advances. I just read an article from Bill Kracunas called, A Scorecard for Technology Debt. In it, Bill has develop a way to calculate the cost that companies are experiencing from the following elements; Ineffective technology leadership 30% Deficiencies in discipline, reporting, and strategic focus of the current IT systems 25% Outdated IT Systems 20% Misspending caused by under-spending, over-spending, misallocating strategic spending, or resource spending (business analysts instead of technical specialists) 15% Process chaos. Many organizations possess incoherent, cross-functional processes, resulting in multiple, separate systems and incomplete or conflicting data. 10% The cost of these elements are astounding. In an ENR.com article dated Dec. 2012 by Isaac Sacolick, […]
May 1, 2015
“Incentive plans can be great but more often they are a nightmare! For incentive programs to be successful they must start with an accurate, timely, and consistent measuring process.” – Lee Clark Incentives can be rewarding and fun but they also can be disastrous to a business if not done right. They often do not need to involve direct cash money. Any incentive program absolutely requires a trusted measuring process. The following suggestions are ones that we have found worked over the last 25 years. 1. Production-based bonuses The ability to earn additional money on top of salary and raises is an incentive that most would love to have. One effective way to set up a bonus program is to […]
February 1, 2015
In today construction economy with a shrinking skilled labor force and no robotics on the horizon you must make every opportunity to retain, train and reward your current crew. “The days of managers yelling and threatening help are over, people don’t respond with maximum productivity to that abuse. With today’s technology, production measuring is very simple and easy to show results. Each person has a head as well as a back and can make daily decisions about jobsite profitability if they have daily access to expectations and results. Here’s why one accurate fact is worth a thousand opinions: Accurate measurements establish current reality. “How did we do today, Boss”? Can you answer that question with accurate facts? Every worker knows […]
January 1, 2015
“How do you check an estimate spreadsheet for errors?” A good question! I have heard it said that; About 90% of spreadsheet templates used in construction contain errors; and An equally high percentage of spreadsheet users are 95 percent confident that their templates do not contain errors. How scary is that? Some reasons for not using generic spreadsheet software include the following: You may seriously underestimate a project due to an overlooked, forgotten, or not properly quantified item. The “time drain” in building an estimate from scratch, one item at a time is significant, and the need to maintain a number of Excel templates with up-to-date pricing and estimate details for specific types of projects is even more time intensive. […]
December 1, 2014
A vital communication tool for your company is the accounting system. Too often it does not give us what we want. The frustration from everyone needing the information and the system unable to provide it can be overwhelming. The following defines when you may want to abandon your current system or keep it and make some changes in the way you are using it. Must haves and grounds for abandonment! Not designed for the construction industry. Job Costs with a Integrated Work in Progress Statement Production Measuring (Units of Measure by Cost Code) Change Orders AIA Billing Certified Payroll or Union Reporting Local Withholding Taxes Proprietary Database (You can only get what they allow you to see) Flexible (User defined […]
September 1, 2014
I received this question the other day during a blog discussion; “I’ve heard that a line of credit should only be used to cover cash shortages to pay for normal operating expenses in the months when we need it…that we should NOT use it to buy equipment (fixed assets). Is this true?” Here are my thoughts: Match the life of the loan to the life of the asset. All assets require some source of funds to acquire them in the first place. When the source is borrowed funds, it is absolutely critical that you match the length of the debt with the asset’s ability to generate cash flow or net profits and thus repay the debt. A short-term loan such […]