Electric Smarts Interview - Contracting Profitably

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These are the slides from an interview with Electric Smarts (www.electricsmarts.com). The audio / video file is online and these slides can help make sense of some of the discussion.

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Electric Smarts Interview - Contracting Profitably

  1. 1. CONTRACTING PROFITABLY ElectricSmarts Brain Bank Series See Audio / Video Online At www.electricsmarts.com www.dbrownmanagement.com D. Brown Management A Hands-On Approach
  2. 2. About David & D. Brown Management <ul><li>In industry since 1988 </li></ul><ul><li>Apprentice, electrician, superintendent, project management, executive </li></ul><ul><li>Stints with GC and CPA </li></ul><ul><li>Projects from service calls through $20M design & build </li></ul><ul><li>construction + business </li></ul>www.dbrownmanagement.com D. Brown Management A Hands-On Approach Field | Management | Consulting
  3. 3. Making a Perfect Cup of Coffee www.dbrownmanagement.com D. Brown Management A Hands-On Approach Craftsman | Manager | Owner
  4. 4. Electrical Construction Cost Breakdown <ul><li>The installation costs (both labor & equipment) are highly variable and make up the largest part of the construction costs </li></ul>www.dbrownmanagement.com Opportunities & Risks D. Brown Management A Hands-On Approach
  5. 5. How Time in Construction is Spent <ul><li>Planning makes actual installation more efficient </li></ul><ul><li>Other activities such as planning and layout shifted to beginning of the project </li></ul><ul><li>Other activities such as site movement, material logistics, general non-productive time and re-work are minimized </li></ul>www.dbrownmanagement.com Opportunities For Improvement D. Brown Management A Hands-On Approach
  6. 6. Understanding The Average Construction Day <ul><li>Source </li></ul><ul><li>RS Means Electrical Estimating Cost Data </li></ul><ul><li>NECA has similar breakdown </li></ul><ul><li>Labor units are based on these standards – watch over time and you’ll see they are very close </li></ul>www.dbrownmanagement.com Where Can We Improve On This? D. Brown Management A Hands-On Approach
  7. 7. Running 100’ of ½” EMT (3.5 Hours Time) <ul><li>6 minutes spent with plans </li></ul><ul><li>6 minutes gathering materials </li></ul><ul><li>10 minutes getting mobilized to work area </li></ul><ul><li>15 minutes laying out area </li></ul><ul><li>10 minutes moving around in work area, bathroom, etc. </li></ul><ul><li>6 minutes cleaning up </li></ul><ul><li>12 minutes breaks & general non-productive time </li></ul>www.dbrownmanagement.com How The Work Typically Happens Just over 2 hours is spent on actual installation D. Brown Management A Hands-On Approach
  8. 8. Four Areas of Focus – What Can You Save? <ul><li>11% Plans & Layout </li></ul><ul><li>6% Material Procurement & Logistics </li></ul><ul><li>13% Mobilization, Site Movement & Cleanup </li></ul><ul><li>6% Breaks & Non-Productive Time </li></ul>www.dbrownmanagement.com 36% Of Your Labor Budget! D. Brown Management A Hands-On Approach
  9. 9. Material Procurement & Logistics <ul><li>6% of your time is spent on these activities </li></ul><ul><li>300 man hours for a 5,000 man hour project! </li></ul><ul><li>That’s 1 person for 2 months! </li></ul>www.dbrownmanagement.com Getting What You Need To Build With Making material lists Keeping the commodities stocked in storage container Moving materials from container or shop to gang boxes From gang box to work area Receiving fixtures and equipment Figuring out where fixtures and equipment go Staging fixtures and equipment around project Dealing with missing parts D. Brown Management A Hands-On Approach
  10. 10. $75,000 15 Person Company (Saving A Few Minutes Per Day) www.dbrownmanagement.com D. Brown Management A Hands-On Approach
  11. 11. MORE INFORMATION dbrownmanagement.com (916) 716-1696 [email_address] www.dbrownmanagement.com D. Brown Management A Hands-On Approach

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