2. Session 1 -
Union Heritage
Module 1 -Union Heritage
and Safety Training
2
Management Function
• With growing competition from open shops, new
attitude required
• NO LONGER TRUE--“If my employer goes out
of business, I’ll find a job with another
contractor.”
• Next job may go to a non-union contractor
• Therefore, every unionized contracting
organization that fails hurts industry AND YOU
3. Session 1 -
Union Heritage
Module 1 -Union Heritage
and Safety Training
3
Successful Contractors
• Make profit
– Money left after all
expenses are paid
– Profits contractors
earn for putting
skilled craftsmen,
materials and money
to work
4. Session 1 -
Union Heritage
Module 1 -Union Heritage
and Safety Training
4
Quote
• “The worst crime
against the working
man is the company
that fails to earn a
profit.”
--Samuel Gompers
5. Session 1 -
Union Heritage
Module 1 -Union Heritage
and Safety Training
5
Bidding Process
• Owner announces plans for a project due on
certain date
• Contractor analyzes specifications for project
– List of materials and equipment
– Labor requirements are figured
– Overhead is calculated
– Bid price established
• If too high, contractor may lose job; if it is too
low, company may lose money
6. Session 1 -
Union Heritage
Module 1 -Union Heritage
and Safety Training
6
Contractor Responsibilities
• Hire best journeyworkers, apprentices, foremen
and supervisory personnel available
• Develop and maintain sufficient capital reserves or
borrowing capacity
• Make careful analysis and selection of jobs to bid
• Convince potential customers that company has
technical competence to plan, coordinate and
execute work
• Make accurate estimates of job costs
7. Session 1 -
Union Heritage
Module 1 -Union Heritage
and Safety Training
7
Contractor Responsibilities
• Plan for a reasonable and realistic profit
• Develop effective methods of cost control
• Maintain a reputation for superior job
performance
• Keep on top of new developments in field
8. Session 1 -
Union Heritage
Module 1 -Union Heritage
and Safety Training
8
Controlling Direct Costs
– Materials
– Productive labor
– Other costs
9. Session 1 -
Union Heritage
Module 1 -Union Heritage
and Safety Training
9
Your Responsibility
• Time
• Materials
• Tools
10. Session 1 -
Union Heritage
Module 1 -Union Heritage
and Safety Training
10
Indirect Costs (Overhead)
• General and administrative
– salaries and fringe benefits for managerial and administrative personnel,
– telephone
– postage
– Stationery and printing
– Office equipment
• Building and Shop
– Shop labor
– Janitorial and security
– Building rent and maintenance
– Utilities
– Insurance
– Taxes
• Selling Expenses
– Salaries for engineers and estimators
– Advertising and promotion expenses
– Travel and entertainment
11. Session 1 -
Union Heritage
Module 1 -Union Heritage
and Safety Training
11
Contractor Associations
• Mechanical Contractors Association of
American
• National Association of Plumbing-Heating-
Cooling Contractors
• National Constructors Associations
• Air Conditioning Contractors Association
• National Fire Sprinkler Association
12. Session 1 -
Union Heritage
Module 1 -Union Heritage
and Safety Training
12
Arbitration
• Arbitration for contract
differences, grievances, and
jurisdictional disputes
• Industrial Relations Councils
formed as alternative to
arbitration in settling local
disputes
• IRC composed of eight
representatives, two from
each of the two contractor
associations and four from
UA
