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It’s Football Season: What do football and construction firms

have in common?

Copyright 2019 Albin, Randall & Bennett

Starting Lineup

David V. Jean, CPA, CCIFP, CExPPrincipal, Albin, Randall & Bennett

• Football - “More sport than business, but it’s still a business” -Coach Bill Belichick

• Players• Construction firm

• Owners, employees

• Subcontractors and

• Surety and agent

• Insurance agent

• CPA \ Attorney \ Banker

• Does your team have the most experienced players?

Business is a Team Sport

• Football teams never skip the draft

• More important than ever to strengthen the bench

• Be prepared for growth and unexpected losses

• Opportunities to improve team performance

• Dedicate significant time and resources to develop leaders

• “Talent sets the floor, character sets the ceiling.” – Coach Belichick

Continuing the Draft

• Football teams always emphasize the fundamentals

• Accurate job cost system• Construction accounting software• Financial management reporting

• Timely, accurate, business intelligence

• Documented systems, polices and procedures• Next person up mentality• “Patriots Way” - culture

• Project management systems• Formalized and standardized

• Training and safety systems• Risk management• “There are no shortcuts to building a team each

season. You build the foundation brick by brick.” – Coach Bill Belichick

Fundamentals: Blocking and Tackling

• Morning huddle• Safety – Tool Box talks

• Production goals

• Material handling

• Site conditions

• Subcontractor coordination

• Field access to job information• Mobility

• Plans

• Documents

• Budgets

• Technology

• Biggest time wasters on job site – waiting for work and instructions and executing the wrong instructions (rework)

Communication

• Fumble – game changer

• No different when estimating hand off project to project manager

• Formalized process

• Job strategy meeting

• Key areas to communicate • Construction risks -CPM

• Contract provisions

• Site conditions

• Safety issues

• Owner's expectations

• Scheduling

• Plans and documents

• Budget

The Handoff

• Football coaches practice every conceivable situation to prepare their team

• Safety environment and site conditions

• Critical path disruptions

• Loss of key supplier, subcontractor, project manager

• Accidents \ catastrophes

• Bidding environment

• COVID?

Situational Awareness

• SWOT analysis

• Short-term and long-term business strategies • Differentiation is a

challenge in a competitive environment

• What is your value add?

• In-game adjustments• Adaptable and flexible

• Culture driven

Game Planning

• Players, coaches, owners, GMs

• Construction owners and key employees

• Training and coaching

• Develop your bench

• “Stretching”

• Incentives to retain employees

• Work environment

• Upward mobility

• Contingency plan

• Comprehensive exit plan for owners

Replacing Your Star Player

• Know your job cost numbers

• Labor and overhead costs

• Gross and net profit margins

• Break-even

• Key Performance Indicators (KPIs)

• Bank covenant ratios

• DSCR

• Tangible net worth

• Months in backlog

• Performance factors

• Surety capacity

• Track bid win work and spreads

Analytics

• Post job completion review• Budget vs. actual

• Production

• Personnel issues

• Subcontractor management

• Customer satisfaction

• Formal process for jobs above a certain limit

• Safety incidents

• Identify successes and failures• Action steps

• Accounting, estimating and project management• Feedback loop

• Self-improvement process

Watch film

• Who?• Customers, architects, engineers,

subcontractors, vendors, bankers

• Customer satisfaction surveys

• Newsletters

• Profile successful projects

• “Quotes”

• Public relations

• Project portfolio

• Community involvement

• Social media• “I don't Twitter, I don't MyFace, I don't

Yearbook,” – Coach Bill Belichick

Cheerleaders

THANK YOU !!

Questions ?

David V. Jean, CPA, CCIFP, CExPPrincipal, Albin, Randall & Bennett207-772-1981djean@arbcpa.com