Business Efficiency

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sfav8r

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I was waiting for an inspection last week, and found myself thinking about inproving efficiency (like not waiting for inspections ;)

I was wondering what other people do to minimize wasted time, so I thought I would put a few things out here:

Inspections:

Some inspectors give a 2-3 hour window (most try for 1 to 1 1/2 hours). I'm sure it's not really true, but it seems like they usually arrive near the end of that timeframe. I try to utilize that time by, straightening out and organizing my van, making a list of inventory items I need, etc. It makes the time go by faster and I'm all ready for the next job.

If the van is already in good shape, I'll look through the schedule, make calls, follow up on estimates, or check on supplies.

Does anyone have any useful ways to spend idle time?

One area that seems to eat away at productive time is runs to the supplier :mad: We do a lot of service work and it seems like it is impossible to stock the right parts. This year has been better, but there is only so much room in a van and you can't pack everything. Any good tips in this regard? We do keep a list of every item that we have to make a parts run for. I keep hoping that a trend will emerge.

How about billing for parts runs. Should the client expect we'll have whatever they need in stock? Should we expect the client to pay our shop rate to go shopping? I'm sure there are lot's of ways to handle this. So far, if we feel we should have anticipated the need of a part, we eat the time. If it is something unexpected or custom, we bill 1/2 our shop rate of $75/hr for parts runs. There is no science involved in this formula, I'm just on the fence as to whether or not we should bill for that time so I split the difference.

Job site:

On bigger jobs, the biggest factor for us is the actual job site. The difference in efficiency between a nice clean site and one where the GC has piles in every room and tools all over the floor is like night and day. Our tracking has shown about 40% increase in time between our best case site and worst case site. How do others deal with this. I don't feel our contract addresses this very well. It states that the site must be "accessible", but one man's accessible is another mans disaster area."

In the interest of not making this the world's longest post, the last topic is bidding tips. We do almost exclusively remodel work. You can throw the price guides out the window on these jobs. Sometimes, if the entire building is being torn down to the studs, you can use them as a guide, but in general, I find them useless for remodel.

The method that works best for us now is to walk the job and estimate days, then add in parts and markup. I suppose that we "guess" as good as anyone else, but the concept just bugs me and I'd like to dial this in better. Particularly because it requires a good knowledge of how MY crew works. Any thoughts?

Hope this wasn't too lengthy.

[ July 25, 2005, 12:37 AM: Message edited by: sfav8r ]
 
Re: Business Efficiency

Originally posted by sfav8r:
Does anyone have any useful ways to spend idle time?
Don't spend it waiting for an inspector. Wire your houses to pass inspection. If they fail, you'll get a call, and the GC should be aware that you'll be out the next day for corrections, and he can re-call the house then.

Generally, my stuff passes, but the framers and plumbers have corrections. If my stuff fails, then the plumbers and framers have their corrections as well. Electricians aren't the only ones that get inspected and hold up production on a house.

Do the plumbers/framer/tinners make immediate corrections on the spot?

One area that seems to eat away at productive time is runs to the supplier :)
 
Re: Business Efficiency

Originally posted by sfav8r:
In the interest of not making this the world's longest post, the last topic is bidding tips. We do almost exclusively remodel work. You can throw the price guides out the window on these jobs. Sometimes, if the entire building is being torn down to the studs, you can use them as a guide, but in general, I find them useless for remodel.

The method that works best for us now is to walk the job and estimate days, then add in parts and markup. I suppose that we "guess" as good as anyone else, but the concept just bugs me and I'd like to dial this in better. Particularly because it requires a good knowledge of how MY crew works. Any thoughts?
What type of remodels are you doing, and how large?

Are you talking about residential or commercial?

What types of building construction and wiring methods are involved?

What kind of square footage, time duration, dollar range, etc, etc?
 
Re: Business Efficiency

Originally posted by georgestolz:
Originally posted by sfav8r:
Does anyone have any useful ways to spend idle time?
Don't spend it waiting for an inspector. Wire your houses to pass inspection. If they fail, you'll get a call, and the GC should be aware that you'll be out the next day for corrections, and he can re-call the house then.
Not usually an option around here. :p

95% percent of the time we need a licensed electrician at the job to meet the inspector. Waiting for them is all part of the job.

Also no one can call for inspections on our permit but us. :cool:
 
Re: Business Efficiency

Originally posted by iwire:
Not usually an option around here. :p

95% percent of the time we need a licensed electrician at the job to meet the inspector. Waiting for them is all part of the job.

Also no one can call for inspections on our permit but us. :cool:
Wow -- that must eat up some time. Around here, the inspectors don't care who calls for the inspection or who meets them on the jobsite. They just want access. If there is something wrong, they call whomever pulled the permit.

I generally try to be on hand for rough-ins, but even that's not required. I once showed up at a house at exactly 8:00 am for an 8:00 meeting with the inspector for a rough-in, only to be told by the HO that he had already been and gone.

Most of my jobs don't require rough-ins, so the procedure is for me to call the inspector and leave a message with the HO's contact details. The inspector then calls the HO to make arrangements. I'd sure hate it if I had to be on hand for every inspection, and I'm sure the customer would hate having to pay for it!
 
Re: Business Efficiency

"Don't spend it waiting for an inspector. Wire your houses to pass inspection. If they fail, you'll get a call, and the GC should be aware that you'll be out the next day for corrections, and he can re-call the house then."

I always try to be there.Stop and think,the inspector can't go back and say NO RED TAGS TODAY ,that just won't happen.So who is the easiest to fail ? the guy thats there or the guy thats not ?
My method is soon as he arrives have my helpers stand ready to be dropped off at anything he doesnt like.They are told not to say anything just fix it.When possable i save things like phone and cable to do while waiting.After that sweep the place up or clean truck.Most inspectors are glad your there to answer there questions.Also think about this,the item is minor like a missing nail plate.If your there he will just say fix it and sign you off.But if your not there then what ? he can't be sure you will fix it and did not even get your word that you will.
 
Re: Business Efficiency

Jim is absolutely correct. (except for the "no red tags today" comment. We have no fail quota.

It is much easier to fail a job when no one is there. When someone is there, little things can be corrected at that time or the electrician can give his word it will be corrected. You learn whom you can count on, and those you can not.

It's also nice to be able to discuss an issue with the electrician in person. We don't have time to call every contractor during the day. In most cases, calls are made and taken in the morning or late in the day. Half the time, you just get some office clerk that can only take a message. I've played phone tag for over week once. I won't do that again.
 
Re: Business Efficiency

Originally posted by iwire:
Originally posted by georgestolz:
Originally posted by sfav8r:
Does anyone have any useful ways to spend idle time?
Don't spend it waiting for an inspector. Wire your houses to pass inspection. If they fail, you'll get a call, and the GC should be aware that you'll be out the next day for corrections, and he can re-call the house then.
Not usually an option around here. :p

95% percent of the time we need a licensed electrician at the job to meet the inspector. Waiting for them is all part of the job.

Also no one can call for inspections on our permit but us. :cool:
What part of MA are you from. I'm in Western MA and I think I'm only around 5% of the time when the inspector shows up.

I agree if you do quality work, you don't usually have a problem.
 
Re: Business Efficiency

Originally posted by adidas532:
What part of MA are you from. I'm in Western MA and I think I'm only around 5% of the time when the inspector shows up.

I agree if you do quality work, you don't usually have a problem.
I am in between between Boston, MA and Providence RI.

[ July 25, 2005, 07:32 PM: Message edited by: iwire ]
 
Re: Business Efficiency

Bob, in the residential stuff I do I am rarely there for the inspector. I would not be able to get any work done if I had to wai for some of these guys.
 
Re: Business Efficiency

Next time you have to wait for an inspector take along a Mike Holt book to read. :D

[ July 26, 2005, 08:52 PM: Message edited by: GG ]
 
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