Contractor'sToolTipGuide-UpdatedJune102017

Contractor’s Tool Tip

Guide

a publication of the

Austin Area Black Contractors Association, Inc.

© January 2008 | Revised: January 2017

services offered:

• Marketing, Outreach & Networking
• MBE/WBE/DBE/HUB Certification Referrals
• Company Profile Resumes
• Weekly Online Bid Briefs
• Quarterly Newsletter
• Contractor’s Tool Tip Guide
• Cost Estimating
• Business & Contract Law
• Technical Assistance & Training
• Plans Center
• Contractor’s Roundtable
• Website: (abcatx.com)
• Advocacy

to set-up an appointment with the ABCA
call 512-467-6894

to review “Bid Briefs” on-line

go to abcatx.com and
click on the Bid Briefs link
to review or download the
Contractor’s Tool Tip Guide —

ABCA is housed in Business Resource Consultants’ Office
6448 Hwy 290 East | Suite E-107 | Austin, TX 78723
E-mail Address: [email protected]
Office Hours: 9am-4pm | Monday-Thursday

Page No. Table of Contents
6–7
TOOL TIPS
8
9 INFORMATION YOU NEED TO KNOW
10-11 ABCA Business Development Assistance

14-15 Services Program
10 Principles To Guide You How To Become A
18
19 Successful Contractor
20-21 The Four Main Construction Categories You
22
23 Should Know
24-27 Why Contractors Fail

30-32 BUSINESS AND CONTRACT LAW
25 Common Mistakes Small Contractors
33
Make With Their Contracts
36
37 BIDDING AND ESTIMATING TIPS
38 Construction Delivery Methods
39 Local Plan Room Sites
40 Top 10 Cost Estimating Software
41 Getting Ready To Bid A Project
42-43 When To Bid or Not
44 Bid Calculation Worksheets
45
BONDING REQUIREMENTS
Contract Surety Bonds

Bid Bond
Performance Bond
Payment Bond
Maintenance Bond
Prequalification Checklist
Financial Statements and Reports Required
Miller Act and FAR Requirements—Federal

SAFETY AND HEALTH
Safety Plan Checklist
Construction Safety Tips
OSHA’s Top Violations
Construction Accidents
Safety Tips for Construction Workers on

Avoiding Stress
How To Stay Warm During Cold Weather
Health and Safety Risks In Construction
Cell Phones Safety While Driving
Protect Yourself Against Identify Theft

Table of Contents

Page No. TOOL TIPS

48-49 MARKETING • NETWORKING • MEETINGS
56-57 Construction Marketing Plan
13 Tips to Develop Strong Networking
58-61
62 Relationships
63 Company Profile Resume Worksheet
64 Marketing Tools; Must Have Equipment
65 Marketing Tools: Proper Telephone Etiquette
66-67 Marketing Tools: Company Brochure
68-69 Marketing Tools: Business Stationary
Where to Sit During A Meeting
72 Unprofessional Behavior

73 CONSTRUCTION TECHNOLOGY
74 Time for the Construction Industry to
75
76 Embrace Technology
77 Livescribe Smart Pen
iPad Plan Grid App
80 Experimental Smart Vest
81 The Smart Hard Hat
82 Robotic Masonry

83 CONSTRUCTION MECHANICS LIEN
84 What is a Lien?
Lien Notice Affidavit Timeline
85 How To Perfect a Mechanics Lien
88-89
AWARENESS
Reporting Waste, Fraud and Abuse
Definition of a Small Business
Definition of a Business Plan
Bid Shopping Law and Definition

CONSTRUCTION WORKER’S DRESS

to set-up an appointment with the ABCA
call 512-467-6894

to review “Bid Briefs” online

go to abcatx.com and click on the Bid Briefs’ link
to review or download the

Contractor’s Tool Tip Guide — go to abcatx.com

ABCA is housed in Business Resource Consultants’ Office
6448 Hwy 290 East | Suite E-107 | Austin, TX 78723
E-mail Address: [email protected]
Office Hours: 9am-4pm | Monday-Thursday



INFORMATION YOU NEED TO
KNOW

•ABCA Business Development Assistance
Services Program

•10 Principles To Guide You How To
Become A Successful Contractor
•The Four Main Construction Categories
You Should Know
•Why Contractors Fail

Page 6 Contractor’s Tool Tip Guide

AUSTIN AREA BLACK CONTRACTORS
ASSOCIATION

BUSINESS DEVELOPMENT ASSISTANCE
SERVICES PROGRAM

The Austin Area Black Contractors Association, (ABCA) is cur-
rently recruiting African American Contractors who are City of Aus-
tin Certified Minority Construction Contractors in need of services
and assistance to help grow their businesses in the construction
industry. The following is a list of services and assistance offered to
the user at no cost:
” Construction Management and Administration

• Provide a plans room to view & check-out plans & specs

• Assist with reading & interpreting plans & specs

• Advise on Cost Estimating Techniques

• Advise on bid packaging requirements & documents

• Disseminate Bid Tabulations

” Business Law and Contracts

• Review & advise on contracts & agreements

• Advise on filing liens, bond claims & change orders

” Marketing

• Develop Company Profile Resumes

• Assist with networking, pre bid conferences & referrals

• Provide guidelines for user friendly marketing plans

• Publish and disseminate weekly, Bid Briefs announcing

upcoming construction bid opportunities

Contractor’s Tool Tip Guide Page 7

” Provide Interactive Group Training Sessions

” Provide One-On-One Technical Assistance

The program have contracted with professional consultants to de-
liver services and assistance that are listed in this notice. Profes-
sional services also includes --- group training and one-on-one indi-
vidual assistance in the areas of cost estimating; construction man-
agement; business law and contracts; marketing; networking; con-
struction procurement notices; and administrative support.

DUE TO LIMITED FUNDS, TECHNICAL ASSISTANCE SUCH AS, COST
ESTIMATING TECHNIQUES AND ADVICE ON CONTRACTS AND
AGREEMENTS WILL BE PROVIDED ON AN INDIVIDUAL AND FIRST
COME, FIRST SERVE BASIS.

Firms seeking one-on-one cost estimating and legal assistance
and services, are required to participate in ABCA’s sponsored
training sessions regarding these topics.

Firms interested in participating in this program will be requested
to complete the Contractor’s Need Assessment /Survey. This
need assessment/ survey will be used . . .
• to assess company needs for services and assistance; and
• to identify barriers that restricts African American Contractors

participation in City construction procurement

If you have any questions regarding the program’s services and
enrollment process, please contact:

Carol S. Hadnot
Program Manager / Consultant
Phone: 512-467-6894 ofc | 512-467-9808 fax

e-mail: [email protected]
location: 6448 Highway 290 East, Suite E-107

Austin, TX 78723

go to ABCA’s Website: abcatx.com
to download copies of the

Bid Briefs • Newsletters • Contractor’s Spotlight
Contractor’s Tool Tip Guide

Page 8 Contractor’s Tool Tip Guide

10 PRINCIPLES TO GUIDE YOU ON

HOW TO BECOME
A SUCESSFUL CONTRACTOR!

Just how does one become a successful contractor?

The answer is neither simple nor certain. The construction industry is a rugged
profession with pitfalls and risks which brawn alone will not assure success.
Success in this industry can not be accomplished in a lighthearted and carefree
manner. It can only be best accomplished by men and women who are prepared
to furnish this service with — knowledge of business principles that involves con-
struction engineering, finance, law, accounting, human resources, safety and
other critical factors such as technology and impacts on marketplace forces.

The following 10 Principles are provided to use as a guide
on what it takes to become a successful contractor:

1. Must have the ability to estimate accurately the cost of a given project.
2. Must have the ability to evaluate intangible factors which influence the cost of

a project.

3. Must have the ability to plan construction in such a manner as to assure
the maximum practical efficiency at the lowest cost.

4. Must have the ability to secure full performance from employees.

5. Must have the ability to establish and maintain adequate banking relationships.

6. Must have the ability to secure adequate bonding services.

7. Must recognize the need for keeping accurate and complete cost records.

8. Must apply sound safety practices.

9. Must be knowledgeable of basic principles of the law as related to
construction.

10. Must be willing to make personal sacrifices when job conditions demand it.

Contractor’s Tool Tip Guide Page 9

THE FOUR MAIN

CONSTRUCTION CATEGORIES
YOU SHOULD KNOW!

The construction industry is as diverse as it uses;
and commonly divided into four (4) main categories:

1. HOUSING
the building of single family homes, condo-
miniums, multi unit townhouses, garden-
type and high rise apartments.

2 NON RESIDENTIAL
institutional, educational, light industrial,
commercial, social, religious, governmental,
recreational buildings, and facilities.

3. ENGINEERING
highway and air field construction, heavy
construction, sewage and water treatment
plants, dams, levees, pipe and pole lines,
and harbor structures, tunnels, large bridges,
reclamation and irrigation work, flood control
structures, and railroads, utility construction,
mostly municipal work such as sanitary and
storm drains, curb and gutter, street paving,
water lines, electrical and telephone distribu-
tion facilities, drainage structures, and pump-
ing stations.

4. INDUSTRIAL
petroleum refineries, steel mills, chemical
plants, smelters, electric power generating
stations, heavy manufacturing facilities.

Page 10 Contractor’s Tool Tip Guide

WHY CONTRACTORS FAIL

AND WHAT TO DO ABOUT IT?

S ubcontractor default is a problem that is neither understated nor under-reported.
Everyone in the industry is familiar with it and the consequences of the likely, yet
always surprising, situation when a subcontractor goes into default on a project.

Starting in 2008, the construction economy started to tank, and the industry experi-
enced a wide number of subcontractor defaults. Now that the economy is recover-
ing, it’s natural to think that defaults will be less common.

The unfortunate fact is that subcontractor default is three times more likely in this re-
covering period than it ever was in the economic downturn. Therefore, it is more im-
portant now than ever to review why subcontractors fail, and what everyone else
should be doing about such failures.

Why Do Subcontractors Fail?

Subcontractor failure is a clear problem, but there are options for companies to miti-
gate the risks of such failures. Understanding why subcontractors fail can help fix the
problem at the source, as opposed to focusing on too many failure symptoms.

• Cash flow. The most basic explanation for subcontractor failure is that the

business organization runs out of cash. There are many reasons for this; most nota-
bly, subcontractors are expected by many to float the project costs. They pay for
all materials on terms, pay all laborers weekly, give up 10 percent of their reve-
nue to retainage withholdings, and then wait for 30, 45, 60 days, or longer, after
fronting the cash to get paid from the general contractor or owner. These are
unrealistic expectations for any company that is not flush with capital.

• Lack of access to capital. Because subcontracting is such a risky and

cash-hungry business, it’s really difficult for these businesses to get capital access
from traditional banking sources. This is especially true in the recovering econ-
omy, where lenders are more reluctant to fund construction investments than
ever. The result is that subcontractors lack any access to affordable capital.
When they are pushed to get funding, they pay higher rates, putting them into a
vicious cycle of interest payments and cash needs.

• Tough work. The transaction is simple if you sell washing machines. A buyer

gives the seller money, and the seller gives the buyer a washing machine. The
machine may have a flaw, but identifying the flaw and fixing it is pretty simple.
Such is not the case with subcontracting. In that business, work is layered upon
the work of tens or hundreds of other parties; the work itself must meet a subjec-
tive-type approval; and there are many things that can wrong on the jobsite that
puts the subcontractor in a practical or legal cross-hairs. This all feeds into the
aforementioned problems, a as this is yet another cause for heightened cash
needs.

Contractor’s Tool Tip Guide Page 11

WHO IS AFFECTED BY

SUBCONTRACTOR FAILURE?

Everyone associated with a construction project is affected by a subcontractor failure.
Those at the top of the chain (general contractors, developers and lenders) must
absorb the loss, find another contractor to do the work, and deal with the inevitable
payment and damages dispute. This likely causes project delay and additional ex-
pense.

Other subcontractors on the job, although likely horizontal to the defaulting contrac-
tor, are affected because of the delay and expense caused to the job as a whole,
becoming yet another thing that contributes toward the odds of their own failure. And
finally, the suppliers and equipment providers are left hanging dry on their terms to the
defaulting subcontractor.

Three Ways to Handle Subcontractor Failure ——

The failure of a subcontractor can be sudden and can cause vast problems. There-
fore, the question is whether anything can be done about it. Here are the top three
ways to protect against subcontractor failure.

1. Lien rights. Though this one doesn’t apply for those at the top of the chain

(general contractors, owners and lenders), it is still the number one protection measure
because of how enormously effective it is for all of the other affected parties. In fact, it
is even effective for the defaulting subcontractor, as it can put it in the best position
possible to claw its way out of a bankruptcy proceeding. Lien rights protect a com-
pany’s right to get paid for work, and more importantly, prevent companies from
being placed into the back of a payment line. A subcontractor in the front of the
payment line avoids cash problems, and is insulated from others defaulting on the
project.

2. Surety bonds. Subcontractors can obtain performance bonds and payment

bonds, and it’s common for general contractors, owners and lenders to require some
subcontractors to acquire these bonds. When a subcontractor has these bonds, a
default is less burdensome because the surety bond will compensate the affected
parties for the losses.

3. Prequalification. Prequalification often is used by top-of-the-chain parties to

assess the likelihood of failure by a lower-tiered party (i.e., a subcontractor). It also can
be used by lower-tiered parties to assess the problems that might arise by higher-tiered
parties. Everyone is affected by default and should do preliminary analysis to avoid
the same. Examining the ability for a subcontractor to deal with the expected cash
flow challenges is a necessary evil in today’s construction economy. Also, it serves
everyone well to make sure the subcontractor is also taking measures to protect lien
rights. If not, the subcontractor is going to be in the back of the payment line, and the
result is a heightened default risk.

Source: Scott Wolfe Jr., the CEO of Zlien, a software and services that helps building
material supply and construction companies reduce their credit risk and default re-
ceivables through the management of mechanics lien and bond claim compliance.



BUSINESS AND CONTRACT LAW

•25 Common Mistakes Small Contractors
Make With Their Contracts

Page 14 Contractor’s Tool Tip Guide

25 COMMON MISTAKES

Small Contractors
Make With Their Contracts

1. When performing as a subcontractor, not reading and fully understanding the con
tract or subcontract terms.

2. Not getting up front, a signed copy of the Prime’s contract with the other party
(usually the owner) signature along with a copy of the Prime’s payment bond.

3. Not reviewing the documents or exhibit that are incorporated into the contract or
subcontract by reference.

4. Not reviewing the terms of the Prime’s contract with the governmental agency or the
property owner before signing a subcontract that is subject to the terms of the Prime’s
contract with the governmental entity or owner.

5. Not insisting that the subcontractor’s Schedule of Values be specifically incorporated
by reference in the subcontract , especially in lump sum contracts.

6. Not insisting that the same delay damage, changed conditions or time extension
clauses, rights, and benefits enjoyed by the Prime be included in the subcontract.

7. Not insisting that the work to be performed under a lump sum contract be specifically
delineated (in detail) with language specifically excluding any other work not so listed,
and not having such list be incorporated into the contract or subcontract and signed
by the Prime or Owner.

8. Failing to carefully review subcontract terms to make sure Prime has not transferred
or required subcontractor to waive claims for liability, damage or delay caused by the
Prime or other tier subcontractors.

9. Not insisting on a delay damage or time extension clause protecting subcontractor
from delays caused by other subcontractors, inspections, owner or changed condi-
tions.

10. Not requiring that the Prime’s or the Owner’s “Notice To Proceed”; “Stop Work
Orders” or other time and performance matters be made in writing.

11. Not requiring that all Change Orders and Additional Work requests be in writing
before performing.

12. Not insisting that all notices of defective, substandard or unacceptable work
be made timely and in writing; and include a reasonable opportunity to cure;
and not requesting that acceptance of the cure work be in writing.

13. Not inserting and insisting upon language entitling the subcontractor to attorney fees
in the event of a dispute resulting in litigation or dispute should the subcontractor be
the prevailing party.

14. Failing to verify that the contract language governing any price, fee formula
or fee calculation is correct and that when applied accurately, reflects the in
tended agreed upon amount (s).

Contractor’s Tool Tip Guide Page 15

15. Not deleting language which would allow the Prime to issue joint checks to subcontract-
tor’s, suppliers, tier subcontractors at their sole discretion, and to then impose an admin-
istrative fee on the subcontractor for the service.

16. Not requiring at each state of completed work (or shipment of materials), the Prime’s or
Owner’s signature confirming acceptance of receipt.

17. Failing to be aware of and timely comply with all written notices and requirements such
as (Notice of Delays, Changed Conditions, Request For Extension, Default by Prime/
Owner, Request for Mediation, etc.).

18. Failing to comply with statutory deadlines and statutory notice requirements for liens,
retainage, etc.; and not pursuing enforcement of valid claims, debts or entitlements.

19. Not insisting that any amendments or modifications of contract or subcontract be submit
ted in writing or to confirm same in writing before doing the work.

20. Failing to establish and maintain mechanisms or procedures to verify prime or owner’s
receipt of written notice, example: faxed notice receipt verified by print out; certified
letters with return receipt; signed copy confirming receipt of notice.

21. Failing to insist that language be included in subcontract be extended to subcontractors
the same late payment interest given by statue to the Prime Contractor on governmental
projects. And, where a Prime insist on making the subcontract’s payment dependent
upon Prime’s receipt of payment from the governmental or private owner, the subcon-
tractor should insist on the following or similar language be inserted at the end of such
payment due clause of subcontract with Prime:

“Except, however, in the event a dispute arises between Prime and Owner regarding
payments, change orders, changed conditions or delays, and such dispute results in or
causes a delay in the Prime’s payment to the subcontractor in excess of for-five (45) days
from the date subcontractor’s invoice or billing to Prime, payment shall be due on or be-
fore the expiration of such forty-fifth (45th) day. Failure of Prime to comply herewith shall
constitute breach entitling the prevailing subcontractor to attorney fees.”

22. Failing to maintain a day log of work performed, hours worked and by whom, with time
value and performance cost (equipment rental, insurance, etc.) accurately recorded or
tracked (especially once a delay or changed condition oc- curs).

23. Failing on a large or extensive project to insert into contract or subcontract, language
creating Prime or Owner liability for delay of Notice to Proceed beyond a pre-designated
date with accompanying reliance on breach language.

24. Failing to obtain written acceptance of work material, etc. where contract required an
agreement for substituted work or material be in writing.

25. Failing to have an attorney review all contracts before signing; and not making it a prac-
tice of adding one percent (1%) to each bid for attorney fees

Source: Beverly J. Landers, Attorney at Law
The Law Office of Beverly J. Landers & Associates



BIDDING AND ESTIMATING TIPS

•Construction Delivery Methods
•Local Plan Room Sites
•Top 10 Cost Estimating Software
•Getting Ready To Bid A Project
•When To Bid or Not
•Bid Calculation Worksheets

Page 18 Contractor’s Tool Tip Guide

CONSTRUCTION DELIVERY METHODS

Options Available before Sep1, 2001
(Senate Bill 510 Effective Date)

• • Competitive Bidding:
Construction contract (s) procured by City, with award going to lowest
responsible bidder.

• • Construction Manager – Agent (CM-A):
Provides professional services and construction management consul-
ting to supplement City’s own resources.

• • Job Order Contracting:
An indefinite quantity contract designed to accomplish small to medium
maintenance, repair and renovation projects, and minor new construc-
tion projects, on an as-needed basis.

Options Available after September 1, 2001

• • Construction Manager - at - Risk (CM-R):
Essentially a general contractor selected on the basis of best value,
rather than price alone and typically contracted early in the design
process to allow for interface with design consultants.

• • Competitive Sealed Proposals:
Alternate method of contracting that differs from competitive bidding in
the selection of the contractor. Construction contract (s) procured by
the City, with award going to firm providing best value.

• • Design-Build:
City secures a single entity to provide both design and
construction services.

Note: The government code requires that City Council determine, before advertisement, when a

method other than competitive bidding will be used to procure a construction contract. The City is
also required to publish its evaluation criteria and their relative weights in its solicitation. The Austin
Area Black Contractors Association has a complete description of the abovementioned Deliv-
ery Methods in their Contractor’s Tool Box Kit.

Contractor’s Tool Tip Guide Page 19

LOCAL PLAN ROOM SITES
To View & Checkout Plans & Specs

City of Austin Construction & Technology
Center (Small and Minority Business Resources)
4201 Ed Bluestein Blvd., Suite 2103
Austin, Texas 78721
512-974-7799

Austin Area Black Contractors Association
(ABCA)
6448 Highway 290 East, Suite E-107
Austin, Texas 78723
512-927-8290 or 512-467-6894

Asian Contractor Trade Association
(ACTA)
4201 Ed Bluestein Blvd., Suite 2104
Austin, Texas 78721
512-926-5400

Associated General Contractors
of America, Building Branch (AGC)
609 South Lamar Blvd.
Austin, Texas 78704
512-442-7887

Associated Builders and Contractors
(ABC)
3006 Longhorn Blvd., Suite 104
Austin, Texas 78758
512-719-5263

United Hispanic Contractors Association
de Austin (USHCA)
920 East Dean Keeton Street
Austin, Texas 78705
512-922-0507

Page 20 Contractor’s Tool Tip Guide

Top 10 Most Recommended Systems
Construction Cost Estimation Software

QuickMeasure OnScreen

QuickMeasure offers Excel-based takeoff for all sizes and types of
contractors. It is especially popular for estimators looking for a
straightforward, low-price system that can generate quick takeoffs
and integrate with Excel.

eTakeoff

eTakeoff is useful for construction firms want to manage their take-
off electronically. The system helps the estimating process by pro-
viding functionality to flip and rotate measurements, include bid
codes, and drawing comparisons.

WenDuct and WenPipe

WenDuct and WenPipe are construction estimating and onscreen
takeoff systems designed specifically for mechanical contractors
working on HVAC, piping, plumbing, sheet metal, and ventilation
projects.

ConEst IntelliBid

ConEst IntelliBid is currently used by more than 4,000 contractors
across the world. ConEst IntelliBid helps estimators automate their
process with features for material and labor pricing, Excel integra-
tion and more.

Clear Estimates

We recommend Clear Estimates to small residential remodelers,
homebuilders and specialty contractors looking for an affordable,
easy-to-use estimating program. Offers material pricing from Re-
modelMax and pre-built bid templates.

Source: Google Website

Contractor’s Tool Tip Guide Page 21

Top 10 Most Recommended Systems
Construction Cost Estimation Software

On-Screen Takeoff

OnCenter's Onscreen Takeoff was the pioneer in digital takeoff sys-
tems and is still one of the market leaders. The system is in use by
more than 20,000 contractors of all specialties. It is intuitive and
easy to use.

ProEst Estimating

ProEst Estimating software is a strong solution for contractors of all
specialties. It can perform cost estimates, digital takeoffs, and bid
day analyses. The flexible SQL database makes the system easily
customizable.

QuoteExpress Piping & SheetMetal

Quote Software specializes in estimating and takeoff software for
mechanical, HVAC and plumbing contractors. They offer a feature-
rich system with 3D takeoff, digitizer integration, visual assemblies,
Excel integration and more.

WinEstimator

WinEstimator is best for medium and large commercial, utility and
general contractors. It's a robust estimating system with Microsoft
Excel integration, visual assemblies, RS Means database, a proposal
generator and more.

FastPIPE & FastDUCT

FastPIPE and FastDUCT were developed for plumbing, mechanical
and HVAC contractors. They're feature-rich estimating systems with
material and labor pricing for over 150,000 items, built-in assem-
blies, digital takeoffs and more.

Page 22 Contractor’s Tool Tip Guide

WHEN TO BID OR NOT BID
A PROJECT?

The decision to bid or not bid a project age the future credibility of the com-
is often times one of the greatest dilem- pany. Often times, passing up on the
mas a contractor faces following an opportunity to bid on a project is the
inquiry to bid. Often times, the immedi- best decision a builder can make. How
ate temptation is to bid on most pro- then, does a contractor faced with this
jects that become available in order to dilemma make an informed decision
keep work coming in and avoid idle whether to bid the job? While there is
production. Yet the decision to bid on no clear cut answer to this question, the
a construction project which is not builder should consider the following
suitable for a particular company can after receiving the bidding documents
have costly ramifications not only fi- and reviewing the project:
nancially, but could just as well dam-

Competition:

•Who else is likely to bid this job?
•How many bidder will there be?
•Are the bidders equal, or are they smaller contractors with lower overhead?

Nature of the job:

•Is the firm capable of building the project?
•Has the company done any similar work in the past?
•Do the firm’s superintendents and project managers have the right kind of

experience to handle the job?

Market conditions:

•Is the job extended over a long period?
•Will there be many unknown factors such as labor rates, material prices,

or other prevailing economic conditions which may upset the project?

Firm’s previous experience with the owner or architect:

•Has the company done any work with them in the past?
•Has the relationship been satisfactory?
•Are they a good client or a good architect?
•Would it be prudent to work for them again?
•Is the company obliged to submit a bid due to this past relationship?

Cost to prepare a proposal:

•Does the probability of getting the job warrant the cost of preparing the proposal?
•What are the chances of winning the job at a reasonable profit?

All of these factors should be considered in a logical way in order to reach a decision
to bid or not bid a job. It is also important that the contractor pursue this thinking as
early as possible and reach a firm decision in order to allow as much time as possible
for the estimating staff to prepare an accurate bid. Good planning and sound decision
making during the bidding process can make the difference between a successful
project and an unsuccessful one, but the decision to bid or not bid a project is argua-
bly the most important factor in the success of a business.

Contractor’s Tool Tip Guide Page 23

GETTING READY TO BID CHECKLIST

Nothing is more important than once you have identified a
potential bid opportunity is to pursue it aggressively and set-up
a contracting infrastructure to:

□ Get the plans and specs ASAP

□ Request a copy of the plan holder’s list

□ Attend the pre bid/proposal conference, (request a
copy of the sign-in sheet); and market your service (s)
with a company profile resume, brochure or business card

□ Request copies of the pre bid conference sign-in sheet

□ Follow-up on contacts

□ Study the plans and specs

□ Decide what you're going to bid

□ Give the plans and specs to your estimator

□ Analyze and understand your estimate

□ Read, follow and understand the bid packet instructions and
requirements

□ Develop an internal bid checklist to verify that all bid
documents are included in your bid package, i.e...addendum,
amendments, forms, documents, and bid bond

□ Have at least two company contract personnel to check and
verify that all bid documents, forms, addendum, amendments,
bid bond are included in your bid submittal. Check with owner
to verify if all addendum or amendments have been received

□ Contact potential prime bidders if you're bidding as a sub

□ Bid with as many prime bidders as possible

□ Follow up with prime bidders to find out whether or not your
bid was used; and if not, reason why!

□ Utilize information and experience gained to bid future projects

Source: Development Assistance Services Program
Construction Management Training Session

Page 24

BID CALCULATION WORKSHEET

John Doe Construction Co.

P. O. Box 355 Contractor’s Tool Tip Guide

Austin, Texas 78702

512/407-6000 office

512/407-8888 fax

e-mail: [email protected]

___________________________________________________________________________________

_______________________________________________________

Project Name

Project Name: _________________

Project No.: _________________

Contract No.: _________________

Date: _________________

IFB/RFP No.: _________________

1. Direct Salary Costs (Number of employees pus payroll taxes and worker compensation)

Title Hours Rate/Hour Costs

_______________ _________ _________ _________ $ ____________ Contractor’s Tool Tip Guide
__________________________ _________ _________ $ ____________
__________________________ _________ _________ $ ____________
__________________________ _________ _________ $ ____________
__________________________ _________ _________ $ ____________
__________________________ _________ _________ $ ____________
Payroll Taxes
Worker’s Compensation $_________
$_________
Total Direct Salary Cost
Total Hours $ ____________

_________

Page 25

2. Labor and General & Administrative Overhead* $___________ Page 26
Percentage of Direct Salary Costs: ________%

3. Direct Non Salary Expenses (includes but limited to: equipment leases or rentals; job trailer; materials;
printing; telephone; legal; gasoline; tools; vehicles, etc.)

_____________________________ $__________________ Contractor’s Tool Tip Guide

_____________________________ $__________________
_____________________________ $__________________
_____________________________ $__________________
_____________________________ $__________________
_____________________________ $__________________
_____________________________ $__________________
_____________________________ $__________________
_____________________________ $__________________
_____________________________ $__________________
_____________________________ $__________________
_____________________________ $__________________
_____________________________ $__________________
_____________________________ $__________________

_____________________________ $__________________
_____________________________ $__________________
_____________________________ $__________________
Total Direct Non Salary Expenses
$____________
4. Subtotal of Items 1, 2, and 3. Contractor’s Tool Tip Guide
$____________
5. Fixed Payment % of Items 4 (Varies by Job) $____________
$____________
6. Subcontractor Costs (specify by name)

____________________________ $ _______________
____________________________ $ _______________
____________________________ $ _______________

7. Total Bid $____________
Formula:
Total ODL Expense _______ = .0000
Total Direct Labor _______
= .9999
Total G & A Expenses _______ = .09999
Total Direct Labor _______
.0000 + .9999 _______

Page 27



BONDING REQUIREMENTS

•Contract Surety Bonds
ºBid Bond
ºPerformance Bond
ºPayment Bond
ºMaintenance Bond
ºPrequalification Checklist
ºFinancial Statements and
Reports Required
ºMiller Act and FAR Requirements

Page 30 Contractor’s Tool Tip Guide

Contract Surety Prequalification
Bonds Checklist

Here is what a contractor may need

Contract surety bonding protects a to provide:

project owner from financial loss An organization chart of key employees
should the bonded contractor fail to and their responsibilities; and detailed
fulfill the contract in accordance resumes of key employees;
with it's terms and conditions. Per-
formance bonds are usually pack- A business plan outlining the type and size
aged with payment bonds. of work sought, prospects for such work,
Bid Bond the geographic area in which the company
Is a bond which provides financial operates, and growth and profit objectives;

assurance that the bid has been Current work in progress as well as a
submitted in good faith, that a con- history of the largest completed jobs,
tractor will enter into a contract at including the name and address of the
the amount bid, and will provide the owner, the contract price, date completed,
appropriate performance and pay- and the gross profit earned;
ment bonds. These bonds are used
by obliges (project owners) to pre- A continuity or completion plan
qualify contractors submitting pro- outlining how the business will continue in
posals. the event of the owner’s death or disable-
Performance Bond ment (the surety may suggest that the
A performance bond guarantees plan include life insurance on key owners

performance of the terms of a con- with the construction company named as

tract. These bonds frequently incor- beneficiary);

porate payment bonds (labor and Evidence of a bank line of credit
materials) and maintenance bonds. to augment working capital and to handle
Bonding ultimately aims to protect temporary cash flow deficits or strains.
the project owner from financial loss Sureties will look at the security for the
should the contractor fail to perform credit and the extent to which bank loans
the contract in accordance with its are used and the amount and terms of
terms and conditions. their repayment. Sureties generally look
Payment Bond for an unsecured line of credit or a line of
A payment bond covers payment of credit obtained through the long-term
subcontractors, laborers, and materi- financing of equipment or real estate; and
als suppliers associated with the pro-

ject. Payment bonds are issued for Letters of recommendation or references
the protection of those supplying from subcontractors, owners, architects,
labor or materials to a particular and engineers on completed projects.
bonded project.

Maintenance Bond

A maintenance bond guarantee

upkeep (maintenance) of the com-

pleted project for a specified period

of time after completion. These

bonds protection from defective

workmanship and/or materials.

Contractor’s Tool Tip Guide Page 31

Financial Statements letters.

Depending on how long the contractor has Schedule of general and administrative
been in business, the surety will request
fiscal year-end statements for at least the expenses—may reveal how well overhead
expenses are controlled and managed.

past three years and may require a financial Explanatory footnotes—
statement audited by a certified public ac- qualifications made by the accountant.

countant (CPA). Financial statements typi- Management letter—conveys the CPA’s
cally include the following:
findings, observations, and recommenda-

Accountant’s opinion page— tions about the contractor’s business. Not
discloses whether the statements were all CPAs provide management letters.

prepared according to audit, review, or Accounting Methods
compilation standards.
Complete and accurate accounting

Balance sheet—shows the as sets, liabili- systems are extremely important to
ties, and net worth of the business as of the surety companies. The American Institute
date of the statement. This helps the surety of Certified Public Accountants’ (AICPA)
company evaluate the working capital and Audit Guide for Construction Contractors
overall financial condition of the company. recommends the percentage-of compl
tion accounting method, which is also
Income statement—measures how well the preferred by most sureties. Contractors
business performed. The surety analyzes also need to prepare a quarterly schedule
each item, including gross profit on con of work in progress. This schedule should
tracts, operating profit, and profit before list each job by name and include:
and after tax provisions.
•Total contract price;

Statement of cash flow— discloses the •Approved change orders;
cash movements from operating, investing, •Amount billed to date;
and financing activities. •Cost incurred to date;
•Revised estimate of the cost to complete;
Accounts receivable and payable •Estimated final gross profit;
schedules—should reflect aging.
and anticipated completion date.
Schedules of contracts in progress
and contracts completed —show the The format of this list and the amount of
financial performance of each contract information required varies among surety
and provide insight into the potential for companies and almost always is required in
future earnings from contracts in pro- connection with the full CPA reports.
gress. This should tie into the balance

sheet.

Schedule of general and administrative SURETY BOND
expenses—may reveal how well over
head expenses are controlled and man
aged.

Explanatory footnotes— qualifications
made by the accountant.

Management letter—conveys the CPA’s Source: SuretyOne, Inc., Raleigh, NC
findings, observations, and recom-
mendations about the contractor’s busi-
ness. Not all CPAs provide management

Page 32 Contractor’s Tool Tip Guide

What do Bonds Cost? comes very important if a contractor is in-
volved in private construction. Many contrac-

Surety bond premiums vary from one surety tors have faced bankruptcy because they did

o another, but can range from one-half of one not ask the source of funding on private

percent to two percent of the contract projects. The surety will insist on knowing the

amount, depending on the size, type, and source and adequacy of funds before it will

duration of the project and the contractor. commit to bonding a project.

Typically, there is no direct charge for a bid

bond, and in many cases, performance ■Contract reviews—Many sureties perform

bonds incorporate payment bonds and main- contract reviews to identify contract terms,

tenance bonds. general condition requirements, or anomalies

in the specifications, or bond forms that may
When bonds are specified in the contract be onerous, unacceptable, or add undue risk
documents, it is the contractor’s responsibility to the project.
to obtain the bonds. The contractor generally

includes the bond premium amount in the bid ■Continuity plans—Sureties can assist the
and the premium generally is payable upon contractor with a continuity plan to protect the
execution of the bond.
contractor’s family, estate, partners, credi-

If the contract amount changes, the premium tors, employees, and assets.

will be adjusted for the change in contract Conclusion
price. Payment and performance bonds

typically are priced based on the value of the Even after all the information is provided to
contract being bonded, not necessarily on the the surety, there is no guarantee it will result
size of the bond.
in approval. The bond will be approved only if

Benefits of Bonding the surety is confident the contractor is quali-
fied to perform the contract and work pro-

gram successfully and has the financial
The surety industry is an integral part of the capacity to withstand the numerous risks
construction business. A good surety under- involved in the construction business. The
writer and surety bond producer can be two decision to seek surety bonds should be
of a contractor’s greatest assets. The pro- based on long-term considerations.
ducer and underwriter are professionals who
possess or have access to a wide variety of To obtain bonds, some changes in the way a
resources to assist contractors. They do all contracting firm does business may be nec-
they can to see that a contractor remains essary and these changes could have asso-
viable. The surety team interacts with a cross ciated costs and benefits.

section of the construction industry and can

assist the contractor with:

■Professional references—
The surety team knows accountants, bank-
ers, and lawyers who understand the con-
struction business.

■Corporate experience—Producers and
surety company personnel can share their
experience on issues facing a contractor.

■Funding verification—This service be- Source:

SuretyOne, Inc., Raleigh, NC

Contractor’s Tool Tip Guide Page 33

MILLER ACT AND FAR mand on the bid bond or bid guarantee to
offset the difference in price between that bid

R E Q U I R E M E N T S — and the next lowest bid.

FEDERAL Bid bonds and bid guarantees are returned to

unsuccessful bidders after bids are opened;

The Miller Act, 40 U.S.C. §§ 270a- bid guarantees are returned to the successful
270f, provides that all federal con- bidder after all contractually required docu-
struction contracts performed in ments and bonds are executed.

the United States must require the PERFORMANCE BONDS — As amended
contractor to furnish a perform- by the FASA, the Miller Act requires payment
ance bond in an amount satisfac- bonds and performance bonds for all federal

tory to the contracting officer; a contracts over $100,000. The penal amount
payment bond in a penal sum of of the performance bond is generally one
up to $2.5 million, and other surety hundred percent of the contract amount, and
bonds as well.
the penal sum is generally increased for each

change order.

Congress made the Miller Act

inapplicable to contracts under The surety is entitled to receive information

$100,000, and directed agencies from the contracting officer concerning the

to develop alternatives to surety progress of the work, payments, and esti-
bonds for contracts between mated percentages of completion whenever it
$25,000 and $100,000. These statu- so requests in writing. The form of the Miller
tory requirements are imple- Act performance bond is set out at FAR
mented in FAR part 28, bonds and 53.301-25.

insurance. PAYMENT BONDS — Payment bonds are

BID BONDS — A bid guarantee is required now required for all federal construction
on federal projects whenever a performance contracts over $100,000. The penal amount
bond and/or a payment bond is mandated. of the payment bond is required to be a
Bid guarantees usually are in the form of bid maximum of $2.5 million where the contract
bonds, but on federal projects they may also price is more than $5 million; for contracts
be submitted as a postal money order, certi- less than $5 million, the penal sum of the
fied check, cashier’s check or an irrevocable payment bond is to be forty to fifty percent of
letter of credit. the contract price.

A bid guarantee must be in an amount equal Each solicitation must state that a payment
to at least twenty percent of the bid price; the bond and performance bond are required, the
maximum amount is $3 million. penal amount required for the bonds, and the
deadline by which bonds must be submitted

The standard solicitation provision requiring after contract award.

bid guarantees says that if the contractor

awarded the contract fails or refuses to exe-

cute all contractually required documents, the

agency may terminate the contract for de-

fault.

In such a case, the agency will make a de-



SAFETY AND HEALTH

•Safety Plan Checklist
•Construction Safety Tips
•OSHA’s Top Violations
•Safety Plan Checklist
•Construction Accidents
•Safety Tips for Construction Workers on

Avoiding Stress
•How To Stay Warm During Cold Weather
•Health and Safety Risks In Construction
•Cell Phones Safety While Driving
Protect Yourself Against Identify Theft

Page 36 Contractor’s Tool Tip Guide

CONSTRUCTION SAFETY PLAN
CHECKLIST

What is in the “Basic Safety Plan”? — A good plan contains the
following OSHA Safety Topics:

•Safety and Health Policy Statement
•Safety Organization
•Safety Education and Training Program
•Assignment of Responsibilities
•Safety Committee
•Disciplinary Policy
•Accident Reporting Procedures
•Supervisor Responsibilities
•Accident Investigation
•Employee Suggestion Program
•Safety Inspection Checklists
•Orientation & Training Responsibilities
•Safety Incentive Program
•Hazard Communication Basic (HAZCOM) Program
•Bloodborne Pathogens
•Emergency Action Plans
•OSHA Record Keeping and Posting Requirement
•Job Safety Analysis

INDUSTRY AND ACTIVITY SPECIFIC NEEDS ANALYSIS THAT MAY
BE ADDED TO YOUR SAFETY PLAN:

Construction Tools Heavy Equipment Excavation Trenching
Concrete Work Grading Foundation
Floor/Hole Openings Lifting Ropes, Slings, Chains Elevated Surfaces
Stud Guns Electrical Plumbing
Heating/Air Conditioning Finish Carpentry Scaffolding
Skill Saws, Radial Arm Saws Paints/Solvents Chemicals
Compressor Compressor Gases

DO NOT BE CAUGHT WITHOUT A SAFETY PLAN!

For more information on how to access various types of construction safety plans to customize for
your company, do a GOOGLE search! There are many on-line sample plans., CDs, DVDs, and
books that you can use in developing this most important and critical guide to save lives and to pro-
mote the health, safety and well being your employees and the general public.

Note this checklist is not conclusive. Other elements may be added or applicable according to your
trade specific need.

Contractor’s Tool Tip Guide Page 37

SAFETY TIPS

FOR CONSTRUCTION WORKER

Everyday construction workers face dangers that threaten their health and lives. Working in the
construction industry can be dangerous. The nature of the work carries risks, and accidents can
result in serious injuries or even death. OSHA (Occupational Safety and Health Administration) law
requires employers to provide a work place that is safe and free from hazards. Yet, everyday con-
struction workers face dangers that threaten their health and lives. According to OSHA, each year-
1000 workers die in construction related accidents - A quarter of a million workers suffer injuries
resulting in lost work days - Construction accidents cost the industry 13billion in workers compensa-
tion cost alone.

OSHA statistics also show that 90% of the fatalities occur in four categories - (1) Caught
between objects - (2) Struck by objects - (3) Electrocution - (4) Falls.

These accidents are, therefore, preventable and can be avoided with the proper safety training,
precaution, and common sense. Construction work can indeed be dangerous. The line between a
near miss and a fatality is thin. Although, the government will enforce safety and health laws and
employers have an obligation to provide a safe and healthy workplace, it is still your responsibility,
and you owe it to yourself and your loved ones, to stay safe and out of harms way.

Government regulators and inspectors cannot be present at construction sites at all times and, due
the nature of the construction business, employers cannot guarantee a 100% safe work place. Sim-
ple things such as a change in the weather or the momentary inattention of a fellow worker can lead
to a dangerous situation in an instant. With the proper safety training, awareness of your rights and
responsibilities, and vigilance against hazardous work conditions you can reduce, if not eliminate
altogether, your risk of being injured at work.

Here are some things you can do:

►Take advantage of training programs provided by your employer, your union, and your safety
society.

►Observe safety rules and regulations at all times.
► Know your equipment and use them correctly.
► Wear and use the right personal protective equipment at all times.
►Use proper barriers and guards always.
►Don't take short cuts with fire, electrical, or fall protection safety equipment.
►Be sure to crib, block and secure all loads as soon as possible.
►Take the time to do the job correctly.
►Report unsafe work conditions.
►Refuse to work in unsafe conditions.
►Watch a free construction safety video online by visiting —

http://www.osha-lc.gov/SLTC/video/constructionsafety/video. html

Above all, be alert. It's your life and health that is at risk.
If you notice a hazardous situation at work you should bring it
to the immediate attention of your employer, your craft steward, or OSHA.

To report an emergency, fatality, or imminent life threatening situation to OSHA call
1-800-321-OSHA (6742), TTY 1-877-889-5672.

Page 38 Contractor’s Tool Tip Guide

CONSTRUCTION SAFETY TIPS
FOR PREVENTING

OSHA’S TOP VIOLATIONS

Citations for violations of 29 CFR 1926.451 Scaffolds General Requirements has consistently led
the list of the most frequently violated OSHA standard for the last several years not only for the
construction industry but for all industries. Moreover, in 2008, construction workers incurred more
fatalities than any other industry. A lot of workers get hurt--and some get killed--every year in scaf-
fold accidents. But the good news is, almost all scaffold accidents can be prevented by proper train-
ing. Have you identified the hazards? Scaffold safety training should begin with identification of the
hazards.

Common hazards include:
•Falls from elevation, due to lack of fall protection

•Collapse of the scaffold, caused by instability or overloading
•Being struck by falling tools, work materials, or debris

•Electrocution, principally due to proximity of the scaffold to overhead power lines

Is your training in line with OSHA requirements? OSHA says that each employee who works on a scaffold must be
trained by a "qualified" person (i.e., someone who is knowledgeable about scaffold safety) to recognize hazards
associated with the type of scaffold being used and understands the procedures necessary to control or minimize
those hazards. Training should include:
•Nature of any electrical hazards, fall hazards, and falling hazards in the work area
•Correct procedures for dealing with hazards and for using personal fall arrest systems and falling object protection
systems
•Proper use of scaffolds, and the proper handling of materials on scaffolds
•Maximum intended load and the load-carrying capacities of scaffolds use in addition to these topics, employees
who are involved in erecting, disassembling, moving, operating, repairing, maintaining, or inspecting scaffolds
must be trained in:
• Correct procedures for erecting, disassembling, moving, etc., the type of scaffold in question
• Design criteria, maximum intended load-carrying capacity, and intended use of the scaffold and

under OSHA regulations, retraining is required whenever:
• Changes at the worksite create hazards about which employees have not been previously trained.
• Changes in the types of scaffolds, fall protection, falling object protection, or other equipment that

create new hazards.
• Inadequacies in employee performance indicate that workers have not retained the essential safety

Information they were taught initially.
Do they or don't they? To make sure employees are safe when working on scaffolds, teach them
these life-saving tips:

DOs knock them off the platform.
•Make sure a competent person has inspected the •Hit a scaffold with anything heavy--a truck, a forklift, a
scaffold before you go up. load of lumber, etc.
•Wear a hard hat whether you work on or under a scaf- •Leave materials and equipment on the platform at the
fold. end of the day.
•Be sure to wear sturdy shoes with nonslip soles as well. •Use an outdoor scaffold in stormy or windy weather, or if
•Use a personal fall arrest system whenever required.
•Watch out for co-workers on the scaffold as well as it's covered with ice or snow.
people below. Why Construction Safety Matters
•Always use common sense when working on any •It is estimated that more than 2 million construction
scaffold, and move around slowly and carefully. workers frequently work on scaffolds.
•Ask a supervisor if you're not sure if a scaffold or work- •OSHA estimates that protecting these workers from
Ing conditions are safe. scaffold
related accidents would prevent 4,500 injuries and 50
DON 'Ts deaths every year.
•Take chances. •Improved construction safety performance can also
•Overload a scaffold. translate into $90 million saved in lost workdays
•Keep debris or unnecessary materials on a scaffold
where someone could trip over them or accidentally Source: Safety.BLR.com

Contractor’s Tool Tip Guide Page 39

CONSTRUCTION ACCIDENTS

Construction workers are exposed to a wider variety of hazards and face a greater risk of work-related injury or

fatality than employees in any other U.S. industry. Construction accidents comprise a wide variety of scenarios and

include: Carbon Monoxide Poisoning Chemical Exposure
Defective Equipment or Machinery Drug User by Employees
·Asbestos Poisoning Lead Poisoning Lifting Injuries
·Construction Trips or Falls Repetitive Motion Injuries Scaffolding Accidents
·Electrocution Unsafe Equipment Welding Accidents
·Negligence of Employees
·Trench Accidents

Protecting construction workers from injury and disease is among the greatest
challenges in occupational safety and health. Consider these statistics.

• More than 7 million persons work in the construction industry, representing 6% of the labor

force. Approximately 1.5 million of these workers are self-employed.

• In 2000, there were about 6,000 fatalities as a result of construction accidents, which is over 15

construction accident related deaths per day. Electrocution causes more construction accident
deaths than anything else.

• Of approximately 600,000 construction companies, 90% employ fewer than 20 workers. Few

have formal safety and health programs.

• From 1980-1993, an average of 1,079 construction workers were killed on the job each year,

more fatal injuries than in any other industry.

• Falls caused 3,859 construction worker fatalities (25.6%) between 1980 and 1993.
• 15% of workers' compensation costs are spent on construction injuries.
• Assuring safety and health in construction is complex, involving short-term work sites, changing

hazards, and multiple operations and crews working in close proximity. In 1990, Congress
directed The National Institute for Occupational Safety and Health (NIOSH) to undertake re
search and training to reduce diseases and injuries among construction workers in the United
States. Under this man date, NIOSH funds both intramural and extramural research projects.

Construction Accident Safety Tips. The top four causes of construction fatalities are:
Falls | Struck-By | Caught-In/Between | Electrocutions

1. Construction Accident - Falls
Wear and use personal fall arrest equipment.
Install and maintain perimeter protection.
Cover and secure floor openings and label floor opening covers.
Use ladders and scaffolds safely.
2. Construction Accidents - Struck-By
Never position yourself between moving and fixed objects.
Wear high-visibility clothes near equipment/vehicles.
3. Construction Accidents - Caught-In/Between
Never enter an unprotected trench or excavation 5 feet or deeper without an
adequate protective system in place; some trenches under 5 feet deep may also
need such a system. Make sure the trench or excavation is protected either by
sloping, shoring, benching or trench shield systems.
4. Construction Accidents - Electrocutions
Locate and identify utilities before starting work.
Look for overhead power lines when operating any equipment.
Maintain a safe distance away from power lines; learn the safe distance requirements.
Do not operate portable electric tools unless they are grounded or double insulated.
Use ground-fault circuit interrupters for protection.
Be alert to electrical hazards when working with ladders, scaffolds or other platforms.

Construction Accident Statistics for 2005 and 2006
As reported by OSHA, In 2005, occupational injury and illness rates declined again to 4.6 cases per 100 employees, with 4.2 million
injuries and illnesses among private sector firms. Approximately 33 percent of work-related injuries occurred in goods-producing
industries and 67 percent in services. There were 5,703 employee deaths in 2006, a slight decrease from the 2005 total of 5,734. The
fatality rate of 3.9 deaths per 100,000 employees was down slightly from a rate of 4.0 in 2005. Fatalities related to highway incidents

and homicides increased, while deaths related to falls decreased. NIOSH Alerts on Construction Hazards: NIOSH has
published a number of Alerts on hazards that are faced by workers in the construction industry. These Alerts provide brief overviews
of the problems, present case descriptions of fatal incidents, outline the relevant safety standards and practices, and summarize
NIOSH recommendations for prevention. Source: http://www.legalawhelp.com/safety_and_health/construction/

Page 40 Contractor’s Tool Tip Guide

5 SAFETY TIPS FOR CONSTRUCTION
WORKERS ON AVOIDING STRESS
AND INJURY

Working as a construction worker is much like being a superhero. Every
day, you’re tasked with bearing heavy loads and using ultra cool equip-
ment and tools. Riding in cranes and squatting on scaffolds put you so
high in the sky that you almost feel like flying. But the same things that
make construction job extraordinary could put you in a lot of stress. If
you’re not too careful, you’d likely meet injuries along the way. Fortu-
nately, there are some safety measures you can follow to avoid common
stress and injury in construction sites. Here they are:

1. Lift objects properly. Back aches are every construction worker’s
number one enemy. While it’s easy to get injured by carrying heavy
loads, it’s not that hard to avoid this hazard altogether. Remember to
always bend your knees and to avoid twisting to the side when lifting.
To maintain balance, put one foot slightly in front of the other.

2. Use ergonomically correct portable and high-powered tools.
Tools are supposed to make your life easier. Of course you know this
but still you find yourself reaching out for the same hammer that puts
a strain on your hand or those pliers that always slip from your grip.
You may not know it but by frequently using poorly designed tools,
you could develop such conditions as carpal tunnel syndrome, ten-
donitis, white finger, and trigger finger. Even powered tools can
cause you serious problems with their high vibration and excessive
noise. For this reason, employers must make sure that power tools
they choose for workers not only have lower vibration but have a long
trigger. They should also consider both left-handed and right-handed
workers when selecting tools. In the case of hand tools, employers
or safety coordinators must choose those that need less force to use
and do not strain the hand when you hold them tight. Hand tools must
also be balanced and do not conduct heat or electricity.

3. Sit down when working at lower levels. Avoid squatting or kneel-
ing when you have to work at lower levels. By sitting on a stable
stool, you avoid straining your knees and waist.

4. Keep your wrists in neutral.
Same goes with your arms. Otherwise, by the end of the shift, your
body will be suffering from swelling, tingling, strains and pains. If
things get worse, you could develop carpal tunnel syndrome.

5. Balance the weight of your tool belt. Tool belts sure are small and
handy but they have the ability to pull your body out of alignment.
That is unless you keep its weight balanced. If you find that one side
of your belt is heavier than the other, then make the necessary ad-
justments by transferring tools to the lighter side.

Source: www.safetyservicescompany.com/

Contractor’s Tool Tip Guide Page 41

A HEALTH AND SAFETY ISSUE:

How to Stay Warm as they are furthest from the body’s
During Cold core. It’s important that cold-weather
clothes don’t compromise safe working
Weather Projects? conditions, so consider mimicking work
movements when trying on items like
boots, coats and gloves.

Tight clothes may seem like a good
idea, but they actually constrict circu-
lation, causing body temps to drop.
Choose clothing items that are com-
fortable and don’t restrict movement.

Layers

You probably already know that layering
clothing is a necessity for outdoor work,
but you may not know the best way to
do it.

Layering several thin layers is better

than wearing a couple of thick layers.

The space between each layer pro-

vides extra insulation, and the more

What most people consider inclement layers you wear, the more you can
weather is not always what builders, adjust your body heat if you become

laborers and project managers con- too hot or too cold.

sider inclement weather. The layer closest to the skin should not

The recent polar vortex that hit much of actually be cotton, because once it gets
the Midwest at the start of this year wet, it no longer provides insulation.

brings home just how important it is to Instead, make sure the first layer is a
be prepared for extreme weather condi- wool, silk or synthetic fabric that can
tions. While even the toughest of pro- wick away moisture. For the same
ject managers might have ceased work reason, the middle layer should also
during the negative temperatures, it’s be a synthetic. The outermost layer
important to remember that average should be waterproof and well venti-
cold can also present dangers to ill- lated.
equipped outdoor workers.

Must-Haves Though we usually worry about not
being warm enough, it’s also dangerous

There are certain cold-weather clothes to become too warm. When your body
that are simply non-negotiable. You starts to sweat, the clothes become wet,
should invest in quality, thermal long decreasing their insulation. Also, as
underwear that will serve as your first sweat evaporates, it lowers your body’s
layer of protection under any work temperature, which is just what you want
clothes. It’s also critical to keep ex- on a 90° June day but exactly what
tremities warm by wearing warm you’re trying to avoid in the cold.

hats, masks, socks, boots and

gloves. fingers, toes, ears and noses

are especially susceptible to frostbite

Page 42 Contractor’s Tool Tip Guide

HEALTH & SAFETY tion sites can get quite hectic what
with the shear volume of constantly

RISKS IN moving vehicles and trades people
– overhead lifting equipment shifting

CONSTRUCTION heavy loads, supply vehicles,
dumper trucks everywhere, maneu-

vering around a usually uneven ter-

The construction industry accident rain.

fatality rate stands at more than Slips, Trips, & Falls
double that of the all sector average When you consider the diverse
– more minor accidents are almost range of activities going on at a
incalculably more. Put simply, con- construction site at any one time it
struction sites are a health and seems hardly surprising slips, trips,
safety nightmare – almost every con- and falls happen on an almost daily
ceivable hazard exists within this basis. Construction sites are a mish
constantly changing working envi- mash of holes in the ground, build-
ronment. But the hazards associated ings at various stages of completion,
with construction sites are well scaffolding, stored materials and
known – most responsible employers equipment: you really do need eyes
are aware of their duty of care to in the back of your head at times.
employees, visitors, and those that
may be affected by their activities, Noise
and will manage the site effectively, Noise is a major hazard within the
implementing appropriate accident construction industry. Repetitive,
prevention measures. Risk assess- excessive noise causes long term
ments are carried out by manage- hearing problems and can be a
ment to identify hazards and risks dangerous distraction, the cause of
posed. Listed below are just a few of accidents. Beware, using simple ear
the main hazards that are encoun- plugs does not necessarily offer total
tered on a typical construction site: protection against hearing damage
Working at Height – employers are required to carry out
The construction of buildings – or and document a comprehensive
indeed, demolition works – fre- noise risk assessment – and issue ap-
quently requires tradesmen to work propriate PPE.

at height. Fatalities and injuries in- Hand Arm Vibration Syndrome
volving height relating factors ac- Hand arm vibration syndrome, or
count for many accidents each ‘blue finger’ as it is commonly re-
year. The risks associated with work- ferred to, is a painful and debilitating
ing at a height are often increased industrial disease of the blood ves-
by added access and mobility re- sels, nerves and joints, triggered by
strictions. Training, including safety prolonged use of vibratory power
awareness training is essential for tools and ground working equip-
employees required to work at ment. This industrial disease is fre-
quently cited in compensation claim
height.
cases opened by ex-construction
Moving Objects workers who worked for years with
A construction site is an ever chang- little or no protection, using inappro-
ing environment; hazards are inher- priate and poorly maintained equip-
ent to this industry and only increase ment.
as a construction project progress,

as things rise and expand. Construc-

Contractor’s Tool Tip Guide Page 43

Material & Manual Handling Airborne Fibres & Materials –

Materials and equipment is being Respiratory Diseases

constantly lifted and moved around Construction sites are a throng of

on a construction site, whether activity and kick up a lot of dust…an

manually or by the use of lifting often invisible, fine, toxic mixture of

equipment. Different trades will in- hazardous materials and fibers that

volve greater demands, but all may can damage the lungs, leading to

involve some degree of risk. Where diseases such as chronic obstructive

employee’s duties involve manual pulmonary, asthma and silicosis.

handling, then adequate training Simply issuing PPE is not enough…

must be carried out. Where lifting employers have a duty to ensure

equipment is used, then adequate protective equipment is actually

training must also be carried out, but used. Failure to do so could render

may involve some form of test, to an employee to disciplinary action

confirm competency. Records of and in hot water with the health and

training must be maintained for veri- safety executive.

fication. Electricity

Collapse On average, three construction in-

Not exactly a hazard, more a risk – dustry workers are electrocuted

an accident in waiting. Every year each year during refurbishment work

excavations and trenches collapse, on commercial and domestic build-

bury and seriously injure people ings. People working near overhead

working in them – precautions need [2] power lines and cables are also at

to be planned before the work risk. There are also a growing number

starts. The risk of an unintended col- of electrocutions involving workers

lapse is generally more associated who are not qualified electricians

with demolition works or when a but who are carrying electrical work,

partially completed building or scaf- such as plumbers and joiners and

folding collapses, but still accounts decorators.

for a percentage of fatalities each Operating throughout the UK and
year. via a global network, the Alcumus
Asbestos Group works with organisations of all
Today there is a new generation of sizes across a variety of sectors. We
construction workers, including; join- support our clients to manage their
ers, electricians and plumbers for exposure to risk, comply with the
whom asbestos is seen as a historical latest legislation, improve business
problem, something from the past performance and encourage work-
that’s now long gone…but that is a force engagement. If you need
mistakenly. training on the health and safety of

There are an estimated 500,000 pub- your construction sites, get in touch

lic buildings in the UK that contain with us today.

harmful asbestos materials: often

hidden away, forgotten, and by and

large, harmless – in its undisturbed

state. Workers need to know where it

is and what to do if they come

across suspicious materials that

might contain asbestos.

Page 44 Contractor’s Tool Tip Guide

97.5% Can't behind the wheel and were supertaskers maintain the ability
assigned a second, demanding as they age, the researchers

Drive Safely activity -- a cell phone conver- say. Watson says brain pic-
sation that involved them tures have been taken of a
While Using memorizing words and solving fighter jet pilot, because it’s
math problems. suspected his brain is similar to

Cell Phones Watson and Strayer measured those of multitaskers. Results
performance of the participants aren’t in, though. The two also
in four areas -- braking reaction hypothesize that professional
March 31, 2010 -- Driving while time, following distance, mem- football quarterbacks and high-
talking on a cell phone is ex- ory, and ability to solve the end chefs may share the ability
tremely hazardous for most math problems. Results to multitask. One preliminary
people, and only a tiny fraction showed that for most people in conclusion is that gender does-
of “supertaskers” can do both the group, performance suffered n’t seem to play a role in deter-
simultaneously without any ill across the board when they mining who can multitask,
effect, a new study says. Uni- drove while talking on a hands- Watson says.
versity of Utah psychologists
found that only 2.5% of people free cell phone. It took most Further research on the study
they studied could successfully people 20% longer to hit the participants, all undergraduates
drive and use a cell phone at brakes and increased following when tested, may reveal some
the same time. Most people -- distances 30%, meaning they shared characteristics. “We’re
97.5% -- aren’t able to drive like failed to keep pace in the simu- hopeful that a combination of
they should if they’re talking on lator with virtual traffic. Also, various measures -- behavioral,
a cell phone, researchers say. their memory performance genetic, brain patterns indexed
dropped 11% and their ability to by neuroimaging -- could be
The findings don’t mean that do the math fell 3%. But for a used to provide markers ... that
supertaskers are smarter than few, it was all a snap. They could help identify supertask-
most folks, but probably that displayed no change in normal ers,” Watson tells WebMD.
genetic factors are at play, braking times, following dis- “From a practical point of view,
making some people better able tances, or math ability, and the knowledge could be used to
to do two or more things at memory actually improved 3%, help identify individuals who
once, one of the study authors, the researchers say. The might be optimally suited for
Dave Strayer, PhD, tells findings are published in the occupations that would seem to
WebMD. We were excited to journal Psychonomic Bulletin require extraordinary multitask-
find this small group of people and Review. The researchers ing ability.” Strayer says the
with extraordinary multitasking say the results were in line with differences in multitaskers and
ability,” Strayer says. “We hope Strayer’s previous studies most people “seem to be ability
comparing them with the rest of showing that driving perform- differences rather than differ-
us will help us better under- ance routinely declines when ences due to practice.”Previous
stand how the brain coordinates people talk on cell phones, even research has shown that cell
multitasking”. to the point of being on a par phone conversations “lead to a

Co-author James Watson, PhD, with the impairment seen in form of inattention blindness,
says they used the term drunken drivers. Yet the super- causing drivers to fail to see up
“supertasker” to describe multi- taskers managed just fine.
tasking ability. He says the odds to half the information in the
are “overwhelmingly against”
most people being multitaskers The Study of Supertaskers driving environment that they
-- “about as good as your Watson and Strayer have col- would have noticed” had they
chances of flipping a coin and lected brain scan data (by not been talking, the authors
getting five heads in a row.” functional magnetic resonance write. They also note that the
The researchers analyzed the imaging) on all participants and National Safety Council esti-
performance of 200 participants hope to get a better understand- mates that 28% of all accidents
over a single task -- driving a ing of brain differences that and deaths on U.S. highways
simulated car on a virtual free- might explain why a few people involve drivers using cell
way. Then the same people got can multitask while most can- phones.
not. It’s possible that young
Source: Bill Hendrick, WebMD

Contractor’s Tool Tip Guide Page 45

PROTECT YOURSELF AGAINST
Identity Theft!

•Never give out personal or business information over the phone.
No credit card company will ask you for that information via phone or e-mail.
Likewise, never give your personal information to anyone unless it is required

•Keep track of your monthly statements.
One reason criminals get away with identity theft is that the victim
doesn’t check financial statements (invoices and billings) for mistakes. Make
sure to read statements carefully and dispute any inaccuracies immediately.

•Limit what you carry in your wallet (purse).
Avoid carrying you Social Security card, birth certificate, passport, or seldom-
used credit cards. Also, keep your ATM receipts with you instead of throwing
them away. This prevents thieves from discovering your account balance and
possibly the last four dig-its of your debit card.

•Check your personal and business credit reports.
There is an inquiry section in your credit report that lists everyone who has
granted you credit. You can get a free annual credit report from
www.annualcreditreport.com.

•Secure your personal and business mail.
Never leave mail in your box. It is safer to leave it in postal service mailboxes.
Instead of having new checks mailed to you, pick them up from the bank.

•Shred or tear up documents that contain personal or business

information.
Buy a shredder, preferably cross-cut style, which cuts documents and credit
cards, across the length and width. Put your garbage out on the morning of
pickup instead of the night before. These actions decrease the probability of
becoming a victim of identity theft through Dumpster diving.

For More information on how to protect yourself and get help if you
do become victim of identity theft, checkout Black Enterprise website
www.blackenterprise.com



MARKETING • NETWORKING •
MEETINGS

•Construction Marketing Plan
•13 Tips to Develop Strong Networking
•Relationships
•Company Profile Resume Worksheet
•Marketing Tools: Must Have Equipment
•Proper Telephone Etiquette
•Business Stationary
•Company Brochure
•Where to Sit During A Meeting
•Unprofessional Behavior

Page 48

published by the Austin Area Black Contractors
Association’s
Contractor’s Tool Tip Guide
Marketing and Outreach Program
managed by

Business Resource Consultants

Marketing Plan Worksheet

The Marketing Plan Worksheet, designed by ABCA Marketing and Outreach Program, is to Contractor’s Tool Tip Guide
serve as a guide to help small construction and construction related firms; and non-
Page 49
professional service firms to identify, evaluate and possible rethink how their firms
can get more business.

The worksheet will also help your firm to identify . . .

• industry trends
• long and short range goals
• company strengths and weaknesses
• market forces that may affect the business; and
• explore innovative approaches needed to grow and

develop the business market client base and area.

Help Your Business Grow and Prosper

by completing, reviewing, fine tuning the attached

Marketing Plan Worksheet into a plan of action

Marketing Plan Worksheet!

MARKETING PLAN WORKSHEET Page 50

FOR CONSTRUCTION AND CONSTRUCTION RELATED FIRMS Contractor’s Tool Tip Guide

AND NON PROFESSIONAL SERVICE FIRMS

1. List the types of services or material supplies your company offers:

_______________________________________________________________________________________________________________
_______________________________________________________________________________________________________________
_______________________________________________________________________________________________________________
_______________________________________________________________________________________________________________
_______________________________________________________________________________________________________________

2. Describe your industry’s sales trend for the next five years:

_______________________________________________________________________________________________________________
_______________________________________________________________________________________________________________
_______________________________________________________________________________________________________________
_______________________________________________________________________________________________________________
_______________________________________________________________________________________________________________

3. Describe your present market geographical area (s) where your customers are located, the type of customer and

potential market growth:

_______________________________________________________________________________________________________________
_______________________________________________________________________________________________________________
_______________________________________________________________________________________________________________
_______________________________________________________________________________________________________________
_______________________________________________________________________________________________________________