It looks like the big picture for construction is changing fast in 2020. What you might have expected to happen at the beginning of the year is probably significantly different from the industry now. There are still a lot of options for contracting businesses, but you’ll need to go in the right direction. Here’s how to decide if public or privately-funded projects are the way to go.

Stability
When private investors lose confidence in the construction industry, they stop investing in projects. If the financial industry is worried that contractors and investors are about to default on their loans, they may tighten their lending standards. This makes funding in the private sector harder to get. By comparison, funding for public sector projects tends to be more stable. California still has a lot of development projects in the works, and the funding for it probably won’t dry up overnight. Just keep in mind that the funding intervals may take longer, and there’s no guarantee that you’ll be able to get more if you run out unexpectedly.

Variability
Some business owners prefer the ability to pick and choose who they work with and which kinds of projects are best for their bottom line. If you are dying to break into a niche service that may not necessarily have a lot of demand, the private sector is probably your best bet. This may not be the safest financial approach at the moment, but it does give you more variability. On the other hand, if you like the comfort of the familiar, public sector projects tend to be larger and more predictable in general.

Timelines
Do you like to pick a project to work on next week, with the idea that you can finish it quickly and move on? Or, do you prefer to plan out your projects as far in advance as possible, giving you greater assurance of income for the long term? The answer to these questions can help you decide. Public works projects often run on much longer timelines, in part because there is more bureaucracy to get through. This means that if you’re in a hurry to start the project and finish it so you can get paid, private projects are probably better for you. But if you are willing to wait a few months before you begin, public projects may make it easier for you to book your schedule a few months in advance.

Bureaucracy
When they say that public sector projects maintain a lot of paperwork, they’re not joking. Although you should plan to carefully review any documentation that you receive for private or public projects, work funded by the government generally carries an extra load. You must be ready to invest the time it takes to understand what you need and how to meet those standards for every project. This is why some experts say that it is often more difficult to break into public projects after years of working with private companies than it is to go in the other direction. It’s still a choice you can make, you just have to be ready to do the homework.

Flexibility
When you’re first starting your contracting business, you may have no idea which direction is best for you. And as the industry changes throughout 2020 and for the next couple of years, you might want flexibility more than you need to make a single firm decision. If you have the ability, it may make sense to try working with both private and public projects. This will give you experience and let you determine which one is already working out better for your business. That should make the path forward much clearer, with a higher likelihood of success.

When you run a contracting business, you’ll have options to work in the public or private sector. The choice you make this year may affect your success for years to come. To learn more about creating a viable contracting business, visit CSLS today!

It feels like parts of the world keep spinning, while others are set off their axis. You may have projects to complete, while your suppliers are considered non-essential. This can cause backlogs in your work, as you try to find ways to keep meeting client expectations as you can. Here are a few delays you can expect related to COVID-19, now and for several months into the future.

Inspections
Many construction projects require inspections at various points in the process. Since it will be more difficult to locate qualified people able to do the inspections, you should plan for significant delays in the inspection process. Right now, you are more likely to notice a slowdown because fewer people are working and more people are trying to minimize their contact with others. Overtime, as more industries open up for business again, the construction industry may face a glut of projects that need to move ahead as quickly as possible. This means that it may take you longer to get permits as well.

Labor

Finding labor has been tricky for several years, due to construction’s labor shortage. But finding qualified workers is going to be even more difficult right now. This is particularly true in fields where you were already having to pay more and search longer to find a qualified person ready to take on the project. Moving forward, you may need to prepare to offer higher rates as you can and start your search for work on specific projects further in advance. This can help you to avoid significant delays while you try to secure a subcontractor.

Materials
Since much of the world is currently dealing with COVID-19 or its aftermath, you can expect a number of delays tied to materials. If you typically outsource a lot of goods for construction from places like China, you may have already noticed a significant slowdown in the rate that you can receive them. It’s also worth keeping in mind that shipping is also taking longer on almost all deliveries that are less than a truckload. To mitigate this issue, you may want to source materials that are closer to your location, so that shipping times are less of an issue for you. Investigating your options to pick something up can also save time.

Tool and Equipment Rentals
Finding the tools and the equipment you need may be more difficult whether you are trying to buy or rent. Most retailers, even those deemed essential, are limiting their hours and restricting how customers can make purchases to reduce contact. Be prepared to order online and wait for shipping if needed. Once construction moves back to regular speed, you might have a harder time getting equipment rentals as everyone tries to catch up on delayed projects. If you can’t buy the equipment that you need, you should see if there is a way that you can book reservations earlier than you usually would.

Tips to Smooth the Process
Although running over time on your project is pretty common in construction, COVID-19 is making those typical delays much longer. The last thing that you want to do is lose money or reliable clients because you failed to estimate how long you need. You can minimize your chance of problems if you:

• Revise estimates on time and pricing based on the most current data
• Add extra time for each step of the project
• Reconsider projects with equipment or materials that are difficult to source
• Look for other ways to trim time off projects without cutting quality

Regular communication with your clients will help assure them that you are continually working in their best interest.

COVID-19 is changing the world as we know it, with significant effects for your construction workflow. Finding ways to predict problems so you can solve them in advance is how your contracting business survives. For more information about preparing for your contractor licensing exam, contact CSLS today!

Construction has had a labor shortage since 2012. But this year, it’s only got worse. While this may seem like an absolute win for someone new to the field, it’s more complicated than that. It’s true that entering a field while it needs skilled workers can make it easier to find work, but you’ve got to balance that with the project delays and struggle to find other workers. Here’s how a labor shortage can affect your future business plans, and why it’s still a good idea to get started now.

How Is Construction’s Labor Shortage?
If you aren’t living it, it may be difficult to understand the dynamic of the construction labor shortage. The pandemic of 2020 has led to millions more people who are unemployed. You might think that this could address the shortage within a month. However, the major issue with the construction labor shortage is a lack of skilled workers, not just labor in general. This means that even if a government program could flood the industry with millions of new workers, they may not be qualified to do the work required. The solution takes years to implement, especially for people who are just starting in the industry.

What Does the Shortage Mean for Contracting Businesses?
Construction may have slowed down a little in the early months of 2020. But now, it is back with bigger demands. The housing shortage in California in recent years has yet to be resolved, leaving millions more in need of affordable housing options. Wildfire damage spawns recovery efforts. This creates a glut of possible construction projects in a variety of fields within the industry. It also creates problems for contracting businesses, especially those that struggle to find qualified employees or subcontractors to perform certain kinds of tasks. After all, if you can’t find the workers, you may not be able to complete the job.

What Does It Mean for Employees?
Ultimately, the shortage may mean that there are excellent opportunities for employees or people who are interested in building a business in construction over the next few years. When business owners can secure projects, but they struggle to find people who will do the work, the ones who can will be in higher demand. This translates into higher wages and better benefits, on top of more power for employees to bargain. Of course, that assumes that each project will have enough people available to complete it. This is why a majority of contractors are currently reporting delays and even canceled projects, on occasion.

How Could the Shortage Change Over Time?
Although the labor shortage has waxed and waned, it has remained a noticeable problem for almost a decade. This year has forced many businesses, large and small, to invest in ways to tackle it for good. The most practical solutions involve:

Resolving the extensive backlog of construction projects

Helping interested workers gain the skills and experience they need for the jobs most in demand

Balancing the needs of the population with the dynamic of the economy, as far as possible

At present, many organizations are investing in construction education. The goal is to increase the number of people in construction, while also ensuring that they have the skills needed to fill the gap. Within 10 to 15 years, the shortage may be gone or mostly managed.

Is Now a Good Time to Start in Construction?
Experts have been talking about construction’s labor shortage for years. And since many people are old enough to remember the housing crisis of 2008, it’s easy to conclude that it might be too late to start now. In fact, now is one of the best times to invest in construction. Building a portfolio of education and experience to take a position that’s high in demand requires years. But the sooner you start, the sooner you can take advantage of that demand.

Construction’s labor shortage gives employees lots of opportunities, and businesses the responsibility to meet them. To find out where a construction career could take you, visit CSLS today!

Payroll taxes are one thing that you’ll need to pay as part of your contracting business. As of September 1st, the federal government gave businesses the option to decline withholding these taxes from employee paychecks, as long as they meet certain requirements. There are benefits to this program, but also possible drawbacks. Here’s what you need to know.

What Are Payroll Taxes?
Payroll taxes are a percentage of an employees’ wages that must be withheld. These taxes come on top of withholding for federal or state income taxes. The payroll tax, which runs 6.2% of most employees’ wages, helps to pay for programs like Social Security. Employers are required by law to withhold it from their employees’ wages. People who are self-employed must pay these taxes either as part of their quarterly estimated taxes, or at the end of the year.

What Is the Payroll Tax Deferral Program?
The payroll tax deferral program issued by President Trump’s executive order in August defers payment of these taxes from September 1 through December 31, 2020. The program functions entirely on a voluntary basis. This means that employers must opt in by holding off on withholding these taxes from employees’ paychecks. It’s worth noting that this program is unique from other payroll tax holidays that have been enacted in the past. Unlike those times, this program is a deferral. In other words, any employer that chooses to participate in this program will need to withhold more taxes from employees’ wages to make up for it by April 30, 2021.

How Can the Program Affect Businesses?
Since the execution of the payroll tax deferral program comes primarily through executive order, some businesses aren’t clear on how they should use it. Employers aren’t required to take advantage of the program, but they also aren’t required to get employees’ support in order to implement it. Many businesses have chosen to participate in the program, in the hopes of ensuring a slightly higher wage for employees during difficult times. Other businesses have decided that the complication of determining eligibility, which may fluctuate for employees with variable income, makes the program too difficult to be worthwhile.

How Can the Tax Deferral Affect Individuals?
For those who qualify for the payroll tax deferral, a 6% temporary increase in paychecks could be a significant benefit. The program is limited to individuals making less than $4,000 every two weeks. This covers the vast majority of workers across the country. Employees should consider how paying it back may affect their paychecks in the first part of 2021. The federal government has made businesses that opt into the program responsible for withholding the additional taxes to cover for the deferral. This may mean that they have to enact new policies for employees who quit, to ensure that those taxes are repaid.

Could the Tax Deferral Program Change?
Given that the program came about through executive order, it’s possible that there may be additional legislation to support it, extend it or make it a true tax holiday. People who don’t pay much attention to the changes in tax laws may not know how common it is for a policy to be extended or changed right before it expires. If the government chooses to, the tax deferral could become a holiday that doesn’t need to be paid back. However, employees should pay attention to the news, and be wary of assuming anything will happen until it’s written into the law.

Figuring out taxes is something that you’ll do as an individual and a business owner. With the latest information, you’ll make wiser choices. For expert exam preparation on your way to becoming a licensed contractor, contact CSLS today!

Have you ever met someone who knew exactly what they wanted to do in life from the time they were a small child? Some people are like that. They are practically born knowing where to go. For the rest of us, it’s important to find a good fit. But having a career is so much better when you know you can bring passion to your work. Here are five ways you can tell that your passion (and your future) lies in construction.

You Can’t Stop Building Things
Like kids who can’t stop playing with Legos, there are adults who absolutely love building things. This doesn’t necessarily mean that you’re constantly creating new structures, however. You’ll know that you’ve got the passion if you are constantly finding new ways to rethink your living or working spaces. For example, if you’re always working on a personal home improvement project or helping your friends with theirs, this is a good sign that you’ll enjoy doing it as a career.

You Love to See Physical Results of Your Work
Centuries ago, most of the work the people did had some kind of physical result. They might create, produce or grow something that others could use or consume. These days, much of what people do for a living isn’t tangible. And while many people believe that these are rewarding careers, it isn’t the best choice for everyone. There are still millions of people who love to work with their hands and see something grow or change before their eyes. Construction provides an immediate reward of progress that can give you a sense of satisfaction with your effort.

You Love Active Work
One of the things that industrialization created for society was the ability to produce more while working less. Instead of having one person produce all components of a product, they are more likely to be in charge of one aspect of it. As a result, in the 21st Century, most people do not work on their feet. This is certainly true for people who have found long-term careers. And while many people find this approach very accessible, there are others who need more activity during the workday. If you find long hours spent outside to be the best way to earn a living, you’re ideally suited to a career in construction.

You’re Always Ready to Learn Something New
While construction is an extremely old profession, this doesn’t mean that it never changes. There are always new technologies and building practices to learn. The people who are better set for a career in construction are the ones who are willing to adapt over time. The last several years have brought significant changes in the construction workflow. As such, some tasks are easier to do and provide a better long-term result. But in order to develop skills in those innovations, you have to have some courage and a love of learning. Always wanting to find out what’s next on the horizon will serve you well in this industry.

You Take Pride in Building on Ancient Tradition
A mix of old and new practices is what makes up the construction industry. You might build something in a way that people have been doing it for 500 years or more. In fact, there’s a whole niche of the construction industry in period construction and renovation. If the process is solid, there may be no reason to change it. But at the same time, there are new developments that can make things better, stronger or more likely to last. Your interest in honoring the past while you create structures for the modern world are signs that you will enjoy this career now, and in the future.

Working in construction might be a job, but it could also be a passion. To find out how you can take advantage of your interest in construction to build a great career, contact CSLS today!

When you’re getting ready to take the contractor licensing exam, you’ve got a few ways to prepare. Of course, you can study from home. But having someone with the experience to help guide you through what to expect and fill out your knowledge can save you a lot of hassle and stress. This is what exam preparation schools do. With these tips, you’ll know how to choose the best one.

Comprehensive Learning Options
Not everyone learns in exactly the same way. Some people benefit from in-person instruction, while others prefer to study on their own. When you are looking for schools that will help you prepare for the contractor licensing exam, you want as many options as possible. A good system will give you several choices, such as:

• Live instruction
• Online courses
• Self-paced programs
• Additional practice

This way, if you’re not sure which learning environment is best for you, you can try out a little of each and decide.

Convenient Locations
If you’re going to take advantage of in-person instruction or classrooms where you can practice some of your skills, there needs to be a location convenient to you. For example, CSLS maintains more than two dozen locations across the state of California. This makes it easy for anyone who wants that experience to find a location in their area and receive it.

Construction Focus
There are hundreds of schools that specialize in exam preparation. This does not mean that they will be able to give you adequate preparation for the contractor licensing exam. Many national companies try to do too much, by offering exam preparation for testing in a wide variety of different industries. But this may mean that they cannot specialize in construction as an industry, and specifically the rules concerning becoming a licensed contractor in the state of California. Finding a school that focuses on construction, and what you can expect when you build a career in the state, will give you a better preparation for your career in the years to come.

High Passing Rates
Going to school for exam preparation is a great tool to make sure that you understand all of the concepts covered, as well as what to expect from the exam itself. One of the best ways that a school can show you their success rate is through a higher rate of students passing the exam. While you look for this data, keep in mind that the number of times it takes a person to pass an exam matters. Schools with a higher rate of students who pass the contractor licensing exam on the first try may be a better investment in the long run.

Guarantees
If an exam prep school is confident that their preparation classes will help you to pass the exam within the first couple of tries, they may offer a guarantee to that effect. Guarantees indicate that if you follow their guidelines and do not receive the desired result, you may be able to get at least a portion of your investment back. This is an opportunity to read the fine print, because guarantees don’t usually come without requirements. Check to see how many opportunities the school gives you to attempt the exam before you request a refund. Confirm that the requirements for the guarantee are clearly outlined and easy to understand.

The right exam school will make you feel much more prepared to take the licensing exam. To find out more about what CSLS can do for you, visit us today!

As a general rule, you’d like to get back to your clients when they have questions. This is particularly important at the early stages, when they aren’t yet your clients. The thing is that communication is highly specialized, with preferences that tend to run along generational lines. If you talk to a baby boomer like a Zoomer, there’s going to be a lot lost in translation. But the same is true for the other way around. Here are a few observed communication preferences that your contracting business can use to get your message across.

Generation Z
At the oldest, members of generation Z are in their early 20s. They have never known a time when internet was not freely accessible, and only the oldest of them can easily remember a world without smartphones. People in this generation are extremely adept at using technology and will often expect businesses to be able to respond in kind. This doesn’t mean that they prefer not to have face-to-face contact where appropriate, however. Rather, they prefer a fluid set of options that they can indicate based on the type of communication. For example, they’re very familiar with email but would probably prefer a text message for timely communications.

Millennials
Millennials, currently in their 20s and 30s, may have different communication preferences based on where they sit in that range. Given that the median age for a construction worker is late 30s or early 40s, you may fit in this category yourself. Research indicates that Millennials prefer to avoid phone conversations where possible. Many people in this generation say that they don’t answer calls unless they know the person who is calling. While this doesn’t apply to everybody necessarily, it does mean that you’re more likely to reach people in this generation by text or email.

Generation X
Generation X comprises people who are in their 40s up to their mid to late 50s. Given the rise of digital technology in the 1990s, you may notice an abrupt shift in preferences between younger generation X and older generation X. For example, people in their 40s may be equally adept at using text messages and email. They’re probably also happy to accept phone calls, but somewhat less likely than their older cohorts. By comparison, older members of generation X may be more comfortable with emails than text messages. As they head toward retirement, they may be unfamiliar with other types of communication or collaboration software.

Baby Boomers
Baby boomers are more likely to have the most traditional communication preferences of any age group you’re likely to encounter. This group ranges from their late 50s to their mid-70s. They grew up in a time when television was relatively new technology, to say nothing of computers and smartphones. They may own a smartphone, but they are much less likely to use it for functions beyond making phone calls and taking pictures. They would often prefer to receive a phone call than an email, although they can usually manage either. They may be able to send and receive text messages, but it would be wise to ask first.

Tips for Good Communication
Ultimately, the best businesses will ask clients about their communication preferences and then stick with it throughout the transaction. No one in any generation likes to be classified based on the highlights of their age group, especially when it’s used to mock them. You’ll find teenagers who love to make and receive phone calls, and baby boomers who love all the latest technology. Your best bet is to offer a variety of options, and make sure that you can operate within that framework.

Communication is one of the best soft skills you can develop for your business. If you find that you’re struggling to communicate with your clients, try a new method and you’ll usually notice an improvement. For more information about running a successful contracting business, contact CSLS today!

You’ve spent years learning skills and weeks or months practicing the details. Now, it’s time to practice for the exam. The best way to ensure that you know what to expect from the contractor licensing exam is to take practice tests. This may seem like an unnecessary extra step, but it’s actually one of the most useful tools you can use. Here are five reasons you can benefit from it.

Find Out What to Expect from the Real Exam
One of the biggest reasons that people struggle with taking exams is that they don’t know what to expect. No matter how much you can practice skills, hit the books and re-read your notes, there’s no replacement for knowing just what the exam is going to be like. This is even more important for people who haven’t taken multiple choice tests in a long time, as well as people who struggled with them when they were in high school or college. Having the opportunity to test it out in a stress-free format can make it easier for you to pay attention to what you see and to how the test goes.

Fill in Information Gaps
For a lot of people, taking a practice test is a way to find out what they don’t know as well as what they do. You may be an expert in certain parts of your field. But if the test doesn’t focus as much on those, you may have parts where you struggle to know what the best answer should be. While practice exams aren’t going to be exactly the same questions, they often cover the same subjects. Once you’ve taken one, you’ll have a concrete list of items that you need to study.

Address Issues with Testing
Everyone has quirks about the way that they take tests. If you don’t know what they are, they’re more likely to come up at the worst possible moment. For example, if you tend to gloss over the questions and just look at the answers, you’re more likely to choose the wrong one. It may be something as simple as getting tired halfway through the exam. Practicing with exams of the same length and for the same duration of time can make it easier to spot what’s likely to go wrong. If you can take it in a setting with similar seating and lighting, you’ll get even more information.

Learn to Pace Your Timing
Having a few hours to take an exam may make it seem like you don’t need to pace yourself. In fact, learning how to use your time wisely is an important benefit of practice exams. If you think you have all the time in the world, you might be tempted to get lost thinking about all the different aspects of the harder ones. But by the end, you could find yourself rushing to finish the last ones. By practicing with the same time limits, you get a sense for how long you need to devote to each question, and how much time you have to do it. This makes it easier to keep a steady pace that can avoid building tension over time.

Overcome Test Anxiety
Test anxiety tends to involve a variety of possible problems. For example, if you are unsure of what the test will be like, you may be worried that you haven’t studied enough or that you don’t know the right subjects. Having an opportunity to practice helps you to fill that in and know what you’re likely to see. You may also be anxious about taking a test because you need to perform on the fly. Being able to think quickly and come up with an answer is an important part of running a contracting business. The good news is that practice can make the unexpected into a common task that doesn’t bother you as much. You might have been afraid of driving at first, too. But after a while, it’s just something that you do.

Passing the test is one of the final steps you need to get your contractor license. To learn how CSLS can help you prepare, contact us today!

Part of running a contracting business involves making sure that you and your employees can be safe on the job. This requires a number of safety measures. While most of them depend on the field and the specific task at hand, others apply to almost everyone. Here are five safety measures you can expect to see in most construction jobs.

Operate Equipment Only While Alert
You probably already know that you shouldn’t be operating construction equipment while you are under the influence of drugs or alcohol. This is true for many other types of heavy equipment operation, like driving. But more specifically, you should ensure that you can use equipment while you remain alert. This may mean taking care to schedule tasks when you have the most focus and energy. That way, you can save low-risk jobs for the end of the day or while you’re waiting for your coffee to kick in.

Handle Dangerous Substances with Care
Construction involves interaction with a variety of substances that could possibly be dangerous. Some of them are naturally occurring, like radon. Others, like lead pipes or asbestos, may be present on the jobsite and require special handling to mitigate or remove. You may also have to work with solvents or treatments that can be hazardous if you touch or aspirate them. Even common substances like paint can be a problem. Knowing what you can do with them and how to dispose of them helps you avoid injuring yourself or others.

Wear Personal Protective Equipment
OSHA keeps a list of the most common construction safety violations for each quarter of every year. One of the most common causes of accidents or injuries is a failure to wear personal protective equipment (PPE). PPE that you may frequently use in construction work includes:

• Hard hats
• Protective eyewear
• Gloves
• Heavy clothing
• Masks and other forms of respiratory protection

Making sure that you know what to wear based on the task can protect you from immediate and long-term injuries.

Pay Attention to Your Surroundings
Another common source of injuries, according to OSHA, are falls or accidents that happened because you or someone else on the jobsite weren’t paying attention to the surroundings. At all times while you are working, you should be paying attention to where you are walking, where other people are positioned and how your tasks and their work affect each other. In many cases, there are risks happening behind you that you don’t realize because you can’t see them immediately. Using a system of notification or alert can help you and other workers avoid hurting each other by accident.

Report Unsafe Working Conditions
On almost any job site, accidents could happen. And when this occurs, people often ask themselves after the fact if there were some things they could have done to prevent it. This requires you to periodically evaluate your working environment and determine if there are ways to make it safer. Preventing injury or illness on the jobsite obligates you and everyone else to make a note of unsafe working conditions. Sometimes, employees are afraid to call attention to it out of fear that they may get in trouble. However, this can lead to a higher risk situation. Cultivating an environment in which people feel safe reporting issues to management leads to improved safety measures.

Learning how to stay safe while you do your job is part of running a successful contracting business. For more information, visit CSLS today!