Presentation Transcript

1. CONSTRUCTION BUSINESS MANAGEMENT

   Dan Vannoy, Facilitator Gray Systems, Inc.
2. Course Overview Management Risk Management Insurance Contracts Green Construction CBM 2010
3. Basic Management Planning Organizing/Staffing Directing/Leading Controlling/Evaluating CBM 2010
4. Types of Managers Doer Director Counselor Delegator CBM 2010
5. Management Responsibilities Organizational structure; Direction, planning, strategies, values and principles; Relationships between its various affiliated and/or subsidiaries members; Alliances, partners and joint ventures; and Research, design and innovation. CBM 2010
6. Management Effectiveness (1) how well the performance objectives and plans are communicated and accepted (2) how well authority, Direction and control are managed (3) how teams are organized and motivated to produce enhanced results through teamwork. CBM 2010
7. Decision Making Effective communications Accountability Decision-making CBM 2010
8. Vision, Mission And Strategy Our vision Our Mission Our Strategy CBM 2010
9. Innovation Collaborators” seek to cooperate in order to accomplish substantial projects successfully. “Directors” manage and brainstorm. “Hurdlers” do more with less. “Experimenters” formulate and test products, processes and new ideas in implementation. CBM 2010
10. The Process of Management Accountability, Authority and Responsibilities of Management Self Management Team Productivity Retain/Rarely Delegate Certain Key Responsibilities Leadership and Management CBM 2010
11. Managing Time (1) set group goals and priorities and manage multiple priorities based on validity and urgency; (2) redirect their efforts to the most important and valid tasks. CBM 2010
12. To better manage your time (1) Planning Your Way to Success by creating clearly defined goals based on your role ; (2) Taming the Typical Timewasters by (a) handling paperwork as few times as necessary but never more than 3 times; (b) eliminate (or at least) minimize e-mail overload; and (c) avoid your natural procrastinating ways CBM 2010
13. Managing Meaningful Meetings by (a) planning and leading more productive and effective meetings and (b) in future meetings, minimize the reasons past meetings were ineffective; CBM 2010
14. Establish Boundaries to Create Balance by (a) prioritizing and choosing your activities to provide balance and (b) honoring your own time commitments; Crafting Your Time Mastery Plan by beginning with two or three written SMART goals for your time mastery plan and implement action plans to achieve your Time Mastery goals. CBM 2010
15. Construction Risk Management The Past The Present The Future CBM 2010
16. Risk Management CRM is simply a common-sense approach to using readily available tools to handle a construction company’s risks in the most cost-efficient manner feasibly [sometimes most effective (zero risk/zero probability) is impossible or not financially feasible]. CBM 2010
17. Objectives of CRM Saf prepared to seize surprising opportunities limit uncertainty CBM 2010
18. DEFINITIONS Risk Costs of Risk Management RM Loss Peril Hazard Loss Exposure CBM 2010
19. 3-dimensions of Risk (Problems always present risk; acting without thinking is usually risky): Direction: positive or negative Degree of Probability: degree of likelihood (ranges from 10-very-possible to 1-not-likely) Magnitude of the Consequences: losses/benefits slight or severe or somewhere in between CBM 2010
20. 3-dimensions of loss exposure The value exposed to loss (almost anything of value can suffer loss from any # of perils) The peril(s) that causes loss (actions, decisions, practices often create multiple perils that individually or combined can potentially become the cause of loss/reductions in value) The likely financial consequences of that loss CBM 2010
21. 4-action steps of the RM process Evaluate loss exposures; Appraise feasible CRM techniques; Establish and analyze the effectiveness of your CRM program; and Adapt to Changes (certain to occur in construction world of today/tomorrow) CBM 2010
22. REACTIVE vs. PRO-ACTIVE Evaluate loss exposures Appraise feasible RM techniques Establish an Effective and Cost-Efficient RM program Adapt to change CBM 2010
23. Evaluate Risk Management PROPENSITY FOR RISKS Benefits of integrated Risk and Loss Management Benefits that CRM/RM can bring to Action Management Benefits that CRM can bring to Bid Management Benefits that CRM can bring to Insurance Management CBM 2010
24. ASSESSING THE EFFECTIVENESS AND THE ROI ON CRM PROCESSES Employee Environmental, Health and Safety Accidents Project Risk Management CBM 2010
25. Insurance and Bonds Procure appropriate and adequate levels of multiple-lines-of-insurance coverage Avoid gaps in coverage that render the contractor “bear” Avoidwasteful duplications of coverage. CBM 2010
26. Construction Bonds Qualifications and Bond threshold Medium Construction Market ($10M-$100/$150M) Large Construction Market ($100/$150M-$250M) Mega Construction Market ($250M+) CBM 2010
27. Construction Insurance Whether residential or commercial, a construction site is just an accident waiting to happen: falls, cuts, and bruises are par the course. Workers are prone to damage a homeowner's property mishandling materials and tools. One slip of a circular saw or shovel can cause unforeseen damage to electrical wiring or underground utilities. Damage can occur when contractors begin dismantling existing structures in the course of remodeling or building new additions. CBM 2010
28. Anatomy of An Insurance Policy Policy Format Declarations Insuring Agreement(s) Covered Perils Exclusions: Conditions Endorsements Insurance Certificate CBM 2010
29. Casualty Insurance Automobile Insurance (owned and non-owned) Policy Commercial General Liability Insurance Policy Personal and Advertising Injury Coverage Medical Payment Coverage Umbrella Liability Coverage Policy WC Policy CBM 2010
30. 1st-Party Insurance Basic Concepts Covered Perils Covered Property Valuation Insurance to Value Replacement Deductibles CBM 2010
31. 1st-Party Insurance (Cont.) Builder’s Risks Business Interruption Contractor’s Equipment Commercial Property Commercial Crime Inland Marine CBM 2010
32. Match Contractor’s Insurance Coverage to Business and Construction Exposures General Liability Insurance Products / Completed Operations Workers' Compensation Builders Risk Insurance Equipment and Tool floaters Railroad Protective Liability Real and Personal Property Owners and Contractors Protective Liability Insurance Pollution Liability Professional Liability Insurance (CMs, Design-Builders, IPD, etc.?) Surety Bonds CBM 2010
33. Match Contractor’s Insurance Coverage to Business and Construction Exposures (Cont.) Railroad Protective Liability Real and Personal Property Owners and Contractors Protective Liability Insurance Pollution Liability Professional Liability Insurance (CMs, Design-Builders, IPD, etc.?) CBM 2010
34. Alternative Market Approaches Co-insurance Self-insurance Risk-Retention groups Owner Controlled Insurance Programs CBM 2010
35. Contractor Insurance Automobile Insurance Builder’s Risk (Course of Construction Insurance) Comprehensive General Liability (mandatory limits established by CILB/ECLB) Employer’s Liability Policy Employment Practices Liability Equipment Floater Insurance Equipment Floater Insurance CBM 2010
36. Contractor Insurance Key-Man Insurance Pollution Liability Umbrella Excess Worker’s Comp (mandatory for contractors subject to exemptions of 3 owner-officers) Contractor-controlled Insurance Programs (CCIP) Owner Controlled Insurance Programs (OCIP) CBM 2010
37. Insurance Considerations Certificates of Insurance Builder’s Risk Commercial General Liability CBM 2010
38. Contract Management Contracts are the foundation and essence of the construction business CBM 2010
39. Elements of a Contract Mutual Assent Mutual Consideration Subject Matter of the Contract Legal Parties Competent With The Legal Capacity To Act For Self Or Others Esstoppel CBM 2010
40. Contract Issues Estoppel Assignments Of Construction Contracts Mistakes In Bids Contract Compliance Change Orders Site Conditions Matters Of Time Indemnification Governing Law And Venue Price Adjustment Clauses CBM 2010
41. Sources for Contracts AIA ConsensusDocs CBM 2010
42. Contract Issues Rules of Contract Interpretation Potential Liabilities Voluntary Activity Legal Liabilities CBM 2010
43. Statute of Frauds The Florida “Statute of Fraud” requires certain contracts be written to be enforceable under contract law, including: Promises to pay the Debts of Another. Conveying an Interest in Land Performance that cannot be completed within 1-Year from date of Agreement (possible to complete within 1-year but it does not have to be mandated to be completed within 1 year). CBM 2010
44. Written Content The Identity of the Party/Parties sought to be charged with duties; Identification of the Contract’s Subject Matter; Terms and Conditions of the Agreement; Recital of Consideration; and Signature of the party/parties to be charged (or signature of their agents). CBM 2010
45. Damages Direct/General Damages Consequential/Indirect Damages Liquidated Damages Punitive Damages CBM 2010
46. Warranties warranty periods statute of limitation periods statute of repose periods CBM 2010
47. Types of Warranties Expressed Implied Statutory Warranties CBM 2010
48. Green Construction What does it mean? Where are we going? CBM 2010
49. Green Building 8 – Phases 7 – Principles 5 – Resources CBM 2010
50. 8-System Levels Level 1: Optimize building functions—reduce loads, chose most efficient equipment to satisfy the demands of the design’s occupancy and loads Level 2: Optimize the building envelop—proper building orientation, daylighting, insulation, window performances, etc. Level 3: Optimize use of site—shade, funneling of prevailing breezes, evapotranspiracy Level 4: Watershed—natural water flows impact water & energy consumptions Level 5: Community—minimize uses of fossil fuels, transportation distances of materials Level 6: Region Level 7: Planet Earth Level 8: Universe CBM 2010
51. LEED Certification sustainable site development, water savings, energy efficiency, atmosphere, materials and resources selection, indoor environmental quality. CBM 2010
52. LEED for Homes voluntary initiative national consistency points for green features LEED for Homes Provider selected Providers third-party verification services CBM 2010
53. Green Construction Issues Contracts The FTC Coordination and Construcability Products Subcontractors Responsibility for LEED Certification Mitigating Risk ConsensusDocs CBM 2010
54. The Future of Green Lack of Experience Will Increase Design and Construction Deficiencies  Standard of Care Will Be Elevated  Regional Issues Not Addressed  CBM 2010
55. Exterior of Building CBM 2010
56. Building Schematic CBM 2010

57. Construction Business Management

    Thank you for being here. Dan Vannoy, Facilitator Gray Systems, Inc. The End