leveraging technology solutions for your heavy highway/civil

AGC'S Contractor to Contractor Webinar Series:

Leveraging Technology Solutions For Your Heavy Highway/Civil Business Needs

Richard Forrestel, Jr., CPATreasurer

Ron CampbellDirector of IT

Goodfellow Bros.

Sponsored by www.computerguidance.com

John ClancyDirector of IT

Cold Spring Construction Company

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Discussion Points• Industry trends, business and IT strategies• Fact-based decision-making on equipment based on historical usage

data, associated expenses, and projected cash flow• Processing different billing types: quantity-based, dollar-based,

equipment utilization based and more• Convenient access to equipment information and dissemination of such

information across the organization• Material billings and management (produced and purchased)• Human resources management and payroll processing, including

handling prevailing wage scenarios• Incorporating, selecting and managing technologies, systems and IT

infrastructure

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Ron Campbell• Ron is the director of Information Technology for

Goodfellow Bros. where he has been since 2008. • Ron is responsible for the company’s IT

infrastructure and related technologies. • Ron championed the engineering and

implementation of a central processing area for technology which drove costs down while increasing availability for Goodfellow Bros.

• Ron’s forward-thinking IT strategy has enabled Goodfellow Bros. to remain a leader in their market.

• Prior to Goodfellow Bros., Ron has more than 25 years of experience in a variety of technical positions including both management and front-line IT. His expertise include in-depth knowledge with enterprise systems and networks, large infrastructures, network optimization and solution implementation.


Goodfellow Bros.Goodfellow Bros. is a fourth generation, family-owned business with nearly a century of experience in building key infrastructures (airport, bridges, roads, landfills), transportation systems, housing facilities, recreation sites and more. The heavy highway contractor with approximately 450 employees and $300M in revenues self-performs most of its work and is known as a leader in innovation leveraging state-of-the-art, satellite-guided equipment, GPS modeling and surveying capabilities as well as equipment monitoring and management technologies.


Richard Forrestel, Jr.• Richard has served as treasurer for Cold Spring

Construction Company since in 1986.• Cold Spring was founded by Richard’s grandfather, Eugene

P. Forrestel, in 1911 and is primarily a highway contractor in western New York state.

• Richard spent eight summers in the field for Cold Spring from 1975 to 1982. During that time, he earned a BA from Princeton University and an MBA from the University of Michigan.

• Richard worked for Peat, Marwick, Mitchell & Co. in Philadelphia from 1982-84 and was awarded a CPA from the Commonwealth of Pennsylvania in 1982.

• Richard is a member of the AGC Tax and Fiscal Affairs Committee as well as the Small Business Advisory Committee to the FASB.


John Clancy• John is the IT director for Cold Spring Construction Company since 1987. • John's responsibilities include the management of the IT infrastructure and

associated technologies• He has been working with Computer Guidance since 1997 implementing various

applications of eCMS with emphasis on equipment accounting, maintenance and productivity.

• Recently over the past three years he has been beta testing GPS Tracking & Maintenance software with Caterpillar & Trimble, going live with 640 assets in January of 2012.

• John's main objective is to get the most out of the equipment for the least amount expenditures. Using the latest technology he has been able to extend maintenance schedules and track the life cycle of detailed components.


Cold Spring Construction Company

Cold Spring is a family-owned, heavy highway/civil contractor located Akron, New York. Cold Spring self-performs most of its federal and state work with 150-160 employees. The heavy highway/civil contractor engages in site preparation and construction of roads, bridges, airports and landfills in the states of Pennsylvania and New York.

Industry Trends & Considerations For Heavy Highway/Civil Contractors

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Business Strategy• Get work• Build up backlog• Lean work• Partnerships• M&As• Customer Service


IT Strategy• Start with a solid core system • Integrate best-of-breed applications

with the core ERP system • Collaborate with the field• Simplify field operations• Add intelligent asset management• Leverage business intelligence• Focus on business objectives,

not on IT projects and systems• Don’t forget about business

continuity

Reduced expensesLess overheadMore flexibilitySmarter business processesFact-based decisions

Corporate Financial and Tax Management

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Corporate Finance & Tax• Tax vs. Book Depreciation Methods• Segmented Analysis• Analytical Flexibility of the System• Cash and Asset Analysis• Quick Visibility into the Future


Cash Flow• Improve timeliness of billings• Decrease DSO• Automate T&M billings• Extend life of the asset• Preventive maintenance • Reduce cash outlay


Billings• Quantity-based Billings• Dollar-based Billings• Equipment Utilization Based Billings• D.O.T. Jobs• Time & Material Billings


Technology Solutions For Corporate Financial Management

ERP

• Integrated Applications• Single Data Source• Scalability• Flexibility• Reliability• Accessibility

Equipment

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Utilization

Planning

Maintenance

Performance

Shared Resource

Equipment Accounting

Risk

Safety


Utilization• Planned utilization• Utilization management• Measuring idle time vs. productive time• Best practices to minimize equipment time• Use of preventive maintenance • Extending the life of your asset


Challenges Equipment Operators Face• Wrong equipment• Poorly maintained equipment• Wrong location• Inadequate training• Transportation logistics

The company was moving the overhead runway beam within a warehouse when it collapsed onto an office. The slings used to lift the beam failed. Investigators found that the operation had not been properly planned by the contractor, which led to the wrong equipment being used. Article by PP Construction Safety H&S Assistance and Consultancy service


Planning• Coordination of activities• Owned equipment vs. rented equipment• Knowing where equipment needs to be• Knowing what resources are needed

How much does it cost to build a road one mile?Hundreds of thousand dollars to over twelve million not including design, engineering and land acquisition. Amazon research study from various DOT case studies


Maintenance• Minimize downtime• Improve scheduling• Maintain asset value

While rentals account for only 1% to 3% of total project costs, experts say, a non-functioning machine can bring a jobsite to a standstill. An idle crew waiting for a replacement machine or repairs can add unexpected costs that skew project profitability. Maintenance is a big part of the decision. Engineering News-Record


Performance• Idle time• Fuel usage• Meter reading• Performance correlation with equipment condition• Measuring fleet performance―per equipment, job and operator


Equipment Accounting• Charging for equipment cost more efficiently• Impact of equipment cost on the overall job• Evaluating low and high margin jobs• Correlation between equipment utilization and equipment cost per job


Equipment Accounting• Cost recovery based on historical data• Rate structure based on corporate standards • Rate structure based on customer contract• Ownership and leasing

The U.S. rental business grew an estimated 18.6% in 2011, according to the Associated Equipment Manufacturers, a Milwaukee-based industry trade group. Engineering News-Record


Risk ManagementOperations• Location Tracking• Utilization abuse• PM upkeep• Theft• Carbon footprint• Equipment efficiency• Buying decisions based on carbon

footprint• EPA compliancy • Contract compliance

Safety• Safety certifications• Operator certifications• OSHA• Liability management

Insert visionlink slidesEquipment history eCMS


Operations Risk Management


Technology For Equipment Management• Core Business Management System (ERP)

• Equipment Accounting• Equipment Maintenance• Service Management• T&M Billing• Payroll/HR• Job Cost/Core Financials

• Intelligent Asset Management• Trimble VisionLink• Zonar• Many Others

• Business Intelligence & Analytics• Mobile/Self Service Applications


Intelligent Asset ManagementEngine Data• Max fuel • Idle fuel • Idle time • Starts – total number of engine startsFuel Data• Consumption • Level value - % of fuel remainingMeter Data• Service meter value – total lifetime by location• Number of hours machine is on• Odometer reading • Latitude and longitude

Human Resources

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Resources• Do I have the resources I need?• Do I have the right resources?• What skill sets do I need?• What skill sets do I have?• Do I self-perform? Do I sub it out? Both?• Union or non-union?• Do I have training certifications in place?• Do I have all safety items administered?

Prevailing WageUnion and non‐Union Labor

Materials

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Materials• Self-produced Materials• Buying Materials• Scale Ticketing• Plant Sales• Transportation• Schedule of Values

Technology, Infrastructure, and Systems

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Considerations• Does my IT Strategy support my Business Strategy?• Is my IT System, Technology and Infrastructure flexible to accommodate

my changing business?• Do I outsource IT? Do I perform it and manage it in-house?• Where do I spend my time and money?

• IT Infrastructure• Overhead/Expertise• Outsourced Services

• What is the most important to automate?• Communications• Asset Management (human resources and equipment)• Financials/Accounting• Project Management• All of the above


ConsiderationsBusiness Needs• Multi-company • Multi-division• Shared Services• International presence/work• Growth through M&As, JVs, partners• Government jobs• Union and non-union • Audits and compliancy• Contracted or self-performed work• Office and field employees


ConsiderationsSystem• Stability• Performance• Scalability• Accessibility• Integration Capability• Business Continuity/HADR• Communication• Collaboration• Mobility• Cloud

Solution Provider• Corporate Stability• Proven Business History• Experience, Expertise, Skills• Support Model• Corporate Strategy


Computer Guidance• eCMS Construction ERP Software

for General, Heavy Highway/Civil, Specialty Contractors

• Customers include numerous Engineering News Record Top 50, 400 and 600 contractors.

• eCMS ranked as the No. 1 Job Costing/Accounting/Payroll Software for commercial contractors with annual revenues of $250 million and higher* in 2010, 2009, 2008, 2007 Proud Supporter and Affinity

Partner of the Associated General Contractors of America

*Construction Financial Management Association’s (CFMA) Annual Information Technology Survey for the Construction Industry


Q&A

www.computerguidance.com888.361.4551

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leveraging technology solutions for your heavy highway/civil

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