Category: Managing Your Business

Need Help Managing Your Business Finances? Check Out These Bulletins!

Staying on top of your company’s finances can be challenging, especially during periods of economic volatility. With that in mind, MCAA’s Management Methods Committee produced bulletins that address the most critical accounting and financial issues facing your business.

The bulletins cover a wide range of topics from general guidelines—Tips to Help Contractors Manage Through an Economic Downturn, Guide to Financial Statements and Credit Policy Criteria—to more specific issues, such as Cash FlowService Mark-ups vs. Construction Mark-ups and Other Direct Job Costs (ODJC’s) and Indirect Job Costs. Each bulletin provides detailed, current information that will not only help you keep your finances in balance but may also streamline your company’s accounting processes and improve your business relationships with your customers, project associates and equipment suppliers.

Want to See All of the Management Methods Bulletins?

You can find them on our Management Methods Bulletins page, where they’re listed by category with links.

GO THERE NOW

Or in the Resource Center, where you can use the blue Refine Your Search bar to pinpoint exactly what you’re looking for.

VISIT THE RESOURCE CENTER

OPUS…Your Online Pipeline to Piping Knowledge!

The Online Piping and Usage Specification (OPUS) tool helps users dynamically evaluate combinations of pipe types, materials, applications and joining methods. Plus, the data in OPUS links directly to the world-class members of MCAA’s Manufacturer/Supplier Council who can provide the materials and methods to make it all work!

While OPUS is geared toward those who are new to the industry, it’s powerful enough to be used by experienced professionals who need to make dynamic combinations of systems and materials on the fly. If you just need to know what the most prevalent materials used in the mechanical contracting industry are, their most typical applications or uses, simple definitions (e.g., What is a ball valve?), photos, diagrams, and who on earth provides and can explain all this “stuff,” www.opuspiping.org should be your first stop!

Developed by the Mechanical Contracting Education & Research Foundation (MCERF) with the assistance of MCAA contractors, Manufacturer/Supplier Council members, students and other stakeholders, this is one resource you won’t want to miss. And you can’t beat the price…it’s free to all who use it. OPUS is your online pipeline to piping knowledge!

CBCA Decision Supports the Use of MCAA Loss of Labor Productivity Factors and the Measured Mile

In a decision published on May 5, 2017, the Civilian Board of Contract Appeals (CBCA) decided in favor of claimant Turner Construction Company regarding delays and loss of labor productivity experienced during the renovations to the National Museum of American History located in Washington, DC.  The contract required substantial structural, architectural, mechanical HVAC and electrical demolition and renovations to the museum.

During the course of construction, Turner and its subcontractors, that included the mechanical and plumbing subcontractor and the sheet metal subcontractor, both MCAA member-firms, encountered concealed conditions that critically delayed the schedule and caused a loss of labor productivity.  Turner filed a claim to the Smithsonian Institution and the parties agreed to litigate the case at the CBCA.

After hearing testimony over a period of several weeks, the CBCA issued its findings and decisions on April 14, 2017.  The Board issued several important findings:

  1. Fact witnesses from Turner and Turner’s subcontractors presented compelling testimony regarding the pervasive concealed conditions that delayed the schedule and impacted labor productivity;
  2. Turner presented a damages claim for which it was partially compensated;
  3. None of Turner’s subcontractors presented independent CPM type delay analyses and the Board denied their extended performance costs;
  4. The MCAA-member mechanical firm presented expert and fact witness testimony regarding loss of labor productivity based on the MCAA labor inefficiency Factors to the extent of a 42% impact, and the Board accepted the use of the MCAA Factors and all of the 42% loss of labor productivity; and
  5. The  MCAA-member sheet metal firm presented expert and fact witness testimony regarding a classic “measured mile” loss of labor productivity comparison and was awarded 100% of its claimed amount.

This reported decision contains clear language supporting the use of the MCAA loss of labor productivity Factors and many citations to some of the authorities that are very important to MCAA member firms.

Details

Turner Construction Company, Appellant, v. Smithsonian Institution, Respondent. CBCA 2862, 4085, 4802, May 5, 2017.

  • Messrs. Douglas Patin and Michael Koplan, Partners, Bradly Arant Boult Cummings, Counsel to the Claimant Turner Construction Company
  • Mr. Paul Stynchcomb, CCM, PSP, CFCC, Principal, Vero Construction Consultants, Corp., testifying expert, loss of labor productivity representing the mechanical and sheet metal subcontractor claimants

Read the CBCA Opinion

Learn More About the Factors and the Measured Mile

Participate in the 2017 Benchmarking Survey

At the 2017 MCAA Convention, MCAA announced a new partnership with the Construction Financial Management Association (CFMA) to make benchmarking data relevant to mechanical contractors available to all MCAA members. We also introduced our newest publication: The 2016 Benchmarking Data for Mechanical Contractors (based on 2015 results). This publication, available free as a benefit of MCAA membership, provides members with data for comparing their business performance against industry averages for the mechanical contracting industry and featuring 20 key financial ratios with data segmented by region, revenue, form of business and best in class.

Download Your Copy

We are now moving into the next phase of our partnership with CFMA. As such, MCAA members are invited (and encouraged) to participate in the 2017 Benchmarking Survey (based on 2016 results). In addition to helping to collect additional relevant information making the survey even more meaningful to mechanical contractors, you will receive 3 reports analyzing your company’s financial information as a thank you for participating.

Completion is Easy

You only need to provide your financial data – and it should only take 30 minutes or less to input!

Why Should You Participate?

We need your company’s information to best deliver the data that details the industry!

PLUS, all participants will receive, free of charge:

  • Your Company’s Performance Report – A $225 Value*
  • TWO FREE Peer Group Comparison Reports – A $198 Value*

* Based on 2017 CFMA Non-Member Pricing

What’s Your Deadline for Participating?

All Financial Survey Online Questionnaires must be completed no later than May 12, 2017.

How Do You Participate?

It’s easy! After logging on to www.MCAAFinancialBenchmarker.com just click on the “Online Questionnaire” tab.

REMINDER: For security and privacy reasons, you are not able to automatically log on to the Benchmarker site with your MCAA user name and password. If you have not used the site before, you’ll just need to register as a new user (takes less than a minute!) and then you are ready to begin entering your information!

Is Your Data Kept Confidential?

All submitted data is held in strict confidence and is accessible solely by those authorized by CFMA. Only aggregate data is disclosed in the Financial Benchmarker Website. CFMA will have access only to respondents’ names and company names to verify participation.

What If You Have Questions?

Need assistance completing the questionnaire? Send an e-mail to cfmasurvey@cfma.org.

MCAA’s ConsensusDOCS Discount Code Has Changed

We’re thrilled that so many of you are interested in ConsensusDOCS! When placing your order, be sure to use MCAA’s new Discount Code – MCAA100 – at checkout to receive the discounted MCAA member pricing.

Not familiar with ConsensusDOCS? The organization, of which MCAA is a participating member, publishes a comprehensive library of some 100 form documents drafted in a co-equal consensus process among the leading industry, owner, contractor and specialty contractor groups. Included are trend-setting contracting forms that address BIM and the newest forms of integrated project delivery.

Learn More

 

Update Your HR Policies with MCAA’s New Guide

Have your human resources policies kept pace with change? If they don’t address electronic communications and social media, cell phones and other technology-centric issues, MCAA’s Guide to Human Resources Policies can help fill the gap. The guide, which reflects current trends and law, provides examples of human resources policies and guidelines. These provide a starting point from which you can customize the guide to meet your company’s needs.

Download Your Copy

Tool & Equipment Rental Guide Rates Are EquipmentWatch Rates

Are you being asked to use rates other than those included in MCAA’s Tool & Equipment Rental Guide? Not to worry… EquipmentWatch prepares the rates in MCAA’s guide using the same cost formulas and methodology they use for their own rates.

Need to prove it to a customer? The Introduction on page 3 of the guide states that:

The Tool & Equipment Rental Guide is a comprehensive, current guide to cost recovery for equipment used by mechanical contractors. The rates in this guide are intended as guidelines paralleling amounts an equipment owner should charge during rental or contractual periods to recover equipment-related costs on a single-shift (8-hour) basis.

These rates are derived from cost formulas and data developed by EquipmentWatch and from analytic methods used in the construction industry. Generally, these methods consider purchase price, depreciation, maintenance and overhaul costs, indirect equipment costs, and average annual use hours. Specific market conditions, such as local supply and demand, are not considered in these calculations. These rates are not a tabulation of rates being charged nationally. They do not reflect rates charged by rental companies except by coincidence. Recognizing that costs may vary considerably from state to state, a Regional Rate Adjustment Table is provided as Appendix I.

Additional information about the guide’s definitions and methodology can be found on pages 5-6.

Download the Guide

ALI Course 17 Is Sold Out!

MCAA’s 2017 offering of its Advanced Leadership Institute (ALI) is now sold out.  Starting in 2014, every ALI has sold out before March for a class that starts the following September.  The 2017 class will be held at the Babson Executive Education Center, Wellesley, MA on the weeks of September 10-14 and November 5-10.

ALI 17 will be capped at 36 attendees as the rise in demand has also pushed the size of the classes ever upward…ALI 16 saw a record 39 graduates.  To insure that each graduate of each class gets the very best professional leadership experience they can receive, ALI Chair Jody Ralston (CEO of High Purity Systems, Manassas,VA) says, “We will balance the demand for the ALI with the end goals and we will cap the class size at 36. We believe this allows us to maximize the number of MCAA members through each course while maintaining ideal group sizes for various exercises and team competitions.”

A waiting list will be started to accommodate persons who may still wish to attend pending any program cancellations.  To get on the list or to learn more about the ALI, contact Dennis Langley.

Get Your Copy of the New Tool and Equipment Rental Guide

MCAA has released the 2016-2017 edition of its Tool and Equipment Rental Guide. The guide puts the latest comprehensive cost recovery information for commonly used tools and equipment at your fingertips. The single download includes both a PDF version and an Excel spreadsheet. The guide is free as a member benefit.

The rental rates are based on ownership and operating costs for contractor-owned equipment and are derived from formulas and data developed by the experts at EquipmentWatch and from analytic methods used in the construction industry.

Generally, these methods consider the purchase price, depreciation, maintenance and overhaul costs, indirect equipment costs and average annual use hours.

Profit, project overhead and general company overhead costs such as office facilities and supplies are not included in the rates.

Download your copy here.

MCAA Releases Updated HR Manual

The MCAA Guide to Human Resources Policies–just updated to reflect current technologies, practices and laws–is now available for download at no charge as a benefit of MCAA membership.

The Guide was designed and is intended to be a tool for mechanical contracting firms to use in creating employment policy manuals for their personnel. New sections have been added concerning employee use of social media, computers, and vehicles, immigration law requirements, nondisclosure of confidential information, security procedures, benefits, leave and much more. The Guide includes two formats—Adobe Acrobat for reading and Microsoft Word for customization.  Bookmarks allow for easy navigation, quick scanning and convenient reference.

Download your copy here.  For assistance, contact publications@mcaa.org or call 800-556-3653.

 

New Management Methods Bulletin on Fabrication Shops

Planning to build or renovate a fabrication shop for your business? You may want to read through MCAA’s latest management resource, Factors to Consider in Establishing, Operating and Maintaining a Fabrication Shop.

Developed by an Advanced Leadership Institute (ALI) team as a Class 15 project, this Management Methods Bulletin takes you through all the considerations that affect your decision to establish a fabrication shop, design issues, equipment needed, and operating and maintenance concerns as well.

The bulletin contains drawings and photos to help you plan your facility. This is an excellent resource that may help you avoid costly design, operating and maintenance mistakes.

This resource is free as an MCAA member benefit. Download your copy now.

MCAA’s New Management Resource Will Help You Improve Employee Reviews

Employee reviews are a management asset that can strengthen administrative relationships and improve employee productivity and satisfaction.

MCAA’s latest management resource—Employee Reviews—provides information about how to prepare for and conduct employee reviews effectively so that supervisors and employees benefit from the experience.

Helpful forms are also provided to guide you through the review process.

This latest bulletin is a product of MCAA’s Management Methods Committee, but was prepared by an Advanced Leadership Institute Course 15 project team. The bulletin received an award for the best management resource produced by an ALI team.

MCAA/MSCA members can download this valuable management asset now!

Pay Forward Your Business-Building Innovation

If a unique management idea helped your company overcome an office or project challenge and improved its bottom line, consider nominating that innovation for the E. Robert Kent Award for Management Innovation. Winning the award brings well-deserved industry accolades and publicity to the nominating company in MCAA and industry publications.

As important, however, the innovation becomes part of our industry’s culture, providing companies that may have been struggling with the same issues and challenges with a way to overcome them.

Last year’s winner was honored for PIPES (Process Information Portal Enabling Success) – developed by The BP Group (Glendale, N.Y.) and ATX Advisory Services. PIPES is an innovative tool that allows a company to easily view the entire workflow of its business while drilling into specific processes to see each step in the flow, the resources involved, the systems used, business policies, systems, procedures and links to forms, reports and other business intelligence used during the course of business.

It is essentially an online “how to” for the business with links into all its operations’ details for employees to use. Built on the foundation of MCAA’s “Planning for Profitability – Step by Step,[link to resource center doc]” PIPES is a template that MCAA members may use to map their business operations. It uses Microsoft® software products, including VISIO, is available in two forms to accommodate all versions of the software and comes with a Users’ Guide to assist with its installation. PIPES is available to MCAA members at no charge as a benefit of membership, so request your copy here..

Nominations for the next E. Robert Kent Award to be presented at MCAA 2017 in San Diego are due to MCAA by October 3. Commercial products are not eligible for this award. Click on the link below for more information and the nomination form.

Information and Nomination Form

It’s Not too Late to Find an Intern, and Get a Grant

MCAA_GREAT_FUTURESIf you are considering hiring an intern for this summer and you haven’t yet lined up candidates, go to MCAA’s website, MCAAGreatFutures.org.

Over 200 resumes of well-qualified students from across the U.S. and Canada are posted and they’re eager to work for a mechanical, mechanical service or plumbing contractor to learn the business.

And, once you’ve hired someone, you can apply for a Student Internship Grant from the Mechanical Contracting Education & Research Foundation (MCERF). The grants are $1,200 each and you may apply for up two grants (if you hire two interns).

View Resumes

Apply for a Grant

NEMCA Contributes to MCERF

The Mechanical Contracting Education & Research Foundation (MCERF) recently received a $10,000 contribution from the New England Mechanical Contractors Association, raising its total contributions to $220,800.

The MCERF Board of Trustees greatly appreciates the generous support which enables the Foundation to continue funding industry-relevant education and research programs.

Find out more about how MCERF has been helping your industry by checking out their website.

MCA of Kansas City Contributes to MCERF

The Mechanical Contracting Education & Research Foundation has received a $10,000 contribution from the MCA of Kansas City, raising its total contributions  to $295,000.

The Foundation Board of Trustees is very grateful for the generous contribution which will help support MCERF’s continuing industry education and research activities. Find out more about how MCERF is assuring the growth and advancement of our industry by visiting the Foundation’s website.

MCERF Information

MCAA 2016 Fabrication Conference was Over the Top

About 180 MCAA members traveled to central Texas last week for MCAA’s 2016 Fabrication Conference. Hosted by Dynamic Systems, Inc. (Austin, TX), the tour of the company’s fabrication operation gave attendees an appreciation of the company’s focus on process and productivity and dedication to providing its employees with the best possible work environment.

Attendees saw the virtual design area; machines, tools and equipment including a spiral machine, CNC plasma tables and coil line and delivery, the Vernon 5 Axis and Victaulic machine; the bar coding and basketing operation; cutting and welding procedures; quality assurance/quality control; and much, much more.

Educational sessions augmented the program. Dynamic Systems Senior Vice President Jay Rohan started off the conference with a detailed overview of the company and its fabrication operation. UA Training Director Chris Haslinger and International Representative Mark Buss shared their expertise about issues affecting fabrication operations, including new equipment, such as “Mega Stir” and other technologies that are changing the way jobs are managed in the field.

Sessions led by Amanda Comunale of Victaulic (Easton, PA) andDutch Martinez of Harder Mechanical (Portland, OR) and Lean consultant Dennis Sowards (Mesa, AZ) provided more perspectives and insights on managing fabrication processes effectively and profitably.

Attendees also had an opportunity to see the latest technologies during an exhibit presented by Autodesk, BD SysQue, Pentair, DeWalt, Eaton B-Line Series, Get the Point, Milwaukee Tool, Pipe Fabrication Institute, Team Industries, Trimble, Victaulic and Zurn.

E. Robert Kent Award Winner PIPES is Now Available

The winner of the 2015 E. Robert Kent Award for Management Innovation – PIPES (Process Information Portal Enabling Success) – developed by The BP Group (Glendale, N.Y.) and ATX Advisory Services – is now available for MCAA members.

PIPES is an innovative tool that allows a company to easily view the entire workflow of its business while drilling into specific processes to see each step in the flow, the resources involved, the systems used, business policies, systems, procedures and links to forms, reports and other business intelligence used during the course of business.

It is essentially an online “how to” for the business with links into all its operations’ details for employees to use. Built on the foundation of MCAA’s “Planning for Profitability – Step by Step,” PIPES is a template that MCAA members may use to map their business operations.

It uses Microsoft® software products, including VISIO, is available in two forms to accommodate all versions of the software and comes with a Users’ Guide to assist with its installation. PIPES is available to MCAA members at no charge as a benefit of membership. Click on the link below to request your copy.

Download PIPES

MCAA Leads Industry Group Seeking Industry Exemption from Paid Sick Leave Executive Order

An MCAA-led industry group provided analyses to the Office of Management and Budget (OMB), Office of Information and Regulatory Analysis (OIRA), and the Department of Labor’s (DoL) Wage and Hour Division as part of its efforts to obtain an industry exemption from President Obama’s Executive Order 13706—requiring paid sick leave accrual for those working on federal contracts—for employees covered by a collective bargaining agreement who are working on direct federal construction and federal facility HVAC service contracts.

MCAA representatives Adam Snavely of The Poole & Kent Co. (Baltimore, MD), Chip Mitchell of the Kirlin Group (Rockville, MD), Steve Weissenberger of MCA-Maryland, Bob Battista representing the MCA-MD and MCA Detroit and MCAA General Counsel John McNerney met with OMB/OIRA/DoL officials on February 11 to discuss the rationale for providing a collective bargaining exemption in the upcoming EO 13706 regulatory proposal.

MCAA’s position, also supported by the Construction Employers of America, laid out an analysis of ways to implement EO 13706 that are consistent with federal procurement, labor, and regulatory implementation policies. MCAA’s effort is aimed at gaining a favorable regulatory approach before a proposed regulation is published, rather than waiting for a proposed rule to be issued with less favorable options.

EO 13706 proposed regulations may be issued within the next month. MCAA’s initial letter to OMB and an outline of MCAA’s February 11 oral presentation are available by clicking on the links below.

Written Comments

Oral Presentation Outline

New Comprehensive Inventory of Construction Industry Multiemployer Pension Plans Released

MCAA, in conjunction with Horizon Actuarial Services, LLC, has released the Fourth Edition (February 2016) of its comprehensive inventory and analysis of construction industry multiemployer defined benefit pension plans for all 790 construction industry plans covering the 2004 through the 2013 plan years.

In releasing the report, MCAA President Steve Dawson said, “MCAA is extremely proud to partner with one of the premier actuarial firms in the industry, Horizon Actuarial Services, LLC to bring this ground-breaking work forward and maintain it on a periodic basis for the benefit of the industry… Before MCAA and Horizon began this collaboration, this type of comprehensive in-depth analysis of the Form 5500 database was not available….”

The report examines trends in plan demographics, cash flows, investment returns, funding status, and other plan costs and expenses over the plan years, which represent the most current Form 5500 data completely available for compilation and analysis.

The Inventory shows continuing steep challenges to the sustainability of the multiemployer system with long-term adverse demographic challenges remaining intractable, with fewer than seven active contributing employees for every 10 participants in the median plan data.

The Inventory data document the continuing need for Congressional action to enact reforms—such as the Solutions Not Bailouts legislative reform proposal. The proposal allows trustees to choose alternate plan designs—composite plans—that will build greater resilience and sustainability into the future of the valuable multiemployer defined benefit plan system for the industry workforce, sponsoring employers, and participants and beneficiaries of the plans. The Solutions Not Bailouts alternate plan design proposal option is strongly backed by MCAA and the National Coordinating Committee for Multiemployer Plans’ (NCCMP) legislative coalition.

Read the full news release about the Inventory at the link below. The Inventory is available as a free download to MCAA and MSCA members.

Download the Inventory

Read the News Release