Take control of your construction contracting business and manage it through the natural highs and lows of the construction market.
Learn from a team of construction business veterans led by Thomas C. Schleifer, who is commonly referred to as a construction business "turnaround" expert due to the number of construction companies he has rescued from financial distress. His financial acumen, combined with his practical, hands-on experience, has made him a sought-after private consultant. His experience and no-nonsense philosophy have truly given him a unique perspective. Important topics covered include:
* Understanding the primary areas of construction business failure in the next decade
* Minimizing business risk with real-world examples
* Developing a positive and competent management attitude and strategy
Discover how to maneuver through this complicated and risky industry by using the authors' research and proven success strategies to sustain and grow your business.
Autorentext
THOMAS C. SCHLEIFER, Ph.D. has 45 years of industry experience and was founder and President of the largest international consultancy firm serving the contract surety industry. He was an Eminent Scholar and Research Professor at the Del E. Webb School of Construction at Arizona State University. Dr. Schleifer, is known as "a turnaround" expert because of the number of companies that he has rescued from financial distress.
KENNETH T. SULLIVAN, Ph.D. is an Associate Professor of Civil and Environmental Engineering at Arizona State University. He is Director of the Facility Management Research Institute and Co-Director of the Performance Based Studies Research Group.
JOHN M. MURDOUGH, CPA is Principal of Pittman & Murdough, founded in 1989. Mr. Murdough is a well-known and respected construction accounting and business strategies specialist.
Inhalt
Foreword xiii
Preface xv
Acknowledgments xix
How to Use This Book xxi
Part 1 xxi
Part 2 xxi
A Teaching Text xxi
About the Authors xxiii
PART 1 1
1 Managing with Confidence 3
1.1 Lessons Learned 3
1.2 Objectives of This Book 4
1.3 Managing Areas of Risk 4
1.4 Recognizing Signs of Potential Trouble 5
1.5 Layers of Management 6
1.6 Owner versus Top Management 7
1.7 Disciplining Performance 7
1.8 Boards of Directors 8
1.9 Accountability 9
1.10 Selecting the Members 9
1.11 Importance of Credit 10
1.12 Volume versus Profit 11
1.13 Employee Benefits and Compensation 12
1.14 Borrowing 13
1.15 Business Planning 13
Chapter Review Questions 17
Critical Thinking and Discussion Questions 17
2 Elements of Contractor Failure 19
2.1 Capitalizing on Experience 19
2.2 Increase in Project Size 20
2.3 Unfamiliarity with New Geographic Areas 21
2.4 Moving into New Types of Construction 23
2.5 Changes in Key Personnel 26
2.6 Lack of Managerial Maturity in Expanding Organizations 28
Chapter Review Questions 29
Critical Thinking and Discussion Questions 30
3 Increase in Project Size 31
3.1 Limits of Growth 32
3.2 Increased Risks with Larger Projects 32
3.3 Case Study 33
3.4 Case Study Review 37
3.5 Underestimating the Size 37
3.6 Owners and Retainage 39
3.7 Allocating Time 39
3.8 Alternatives to Taking on Large Projects 39
3.9 Conclusion 41
Chapter Review Questions 41
Critical Thinking and Discussion Questions 42
4 Change in Geographic Location 43
4.1 Defining Normal Area 43
4.2 Reasons for Changing Geographic Area 43
4.3 Case Study: Long Distance Project 44
4.4 Review of the Long Distance Project Case Study 46
4.5 Managing the Risk with Long Distance Projects 47
4.6 Case Study: Regional Office 48
4.7 Review of the Regional Office Case Study 49
4.8 The Need for Personal Attention 50
4.9 Opening a Regional Office 50
4.10 Regional Office Contingency Plan 51
4.11 Conclusion 53
Chapter Review Questions 54
Critical Thinking and Discussion Questions 54
5 Changing or Adding to Type of Construction Performed 57
5.1 Reasons for Changes in Type of Work 57
5.2 Challenge: Lack of Experience 58
5.3 Challenge: Differences That Appear Subtle 60
5.4 Resolution: Know Your Specialty 60
5.5 Background to Case Studies 61
5.6 Case Study 1 61
5.7 Case Study 2 62
5.8 Example: Union versus Open Shop 64
5.9 Know the Risks 65
5.10 Volume versus Profit Alternative 65
5.11 Withdrawal Plan 66
5.12 Conclusion 67
Chapter Review Questions 67
Critical Thinking and Discussion Questions 68
6 Replace Key Personnel 69
6.1 Identifying Key People 69
6.2 Partners 70
6.3 Founders and Succession 71
6.4 Inactive Founders 72
6.5 Succession Case Study 72
6.6 New Management Team 75
6.7 Adding Key Personnel 75
6.8 Management Dilution 76
6.9 Summary 77
Chapter Review Questions 78
Critical Thinking and Discussion Questions 78
7 Managerial Maturity 81
7.1 Start-Up Construction Companies 81
7.2 Importance of Management Skills 82
7.3 Company Growth Phases 83
7.4 Limit of Managerial Effectiveness 84
7.5 Company Growth and Management Thresholds 85&...