Having a lot more time to think about your workflow outside of the jobsite might make you realize that your workspace isn’t working. And even if it is, it may be a good opportunity to revisit what you’re getting from the space, and what you could have instead. A sudden vacation of a lot of commercial spaces due to COVID-19 has changed the dynamic. It’s also changed the way you think about doing construction, on and offsite. These five aspects can help you determine if you should stay where you are, or consider moving to something different.

Your Workspace Needs Have Changed
It would be hard to find some aspect of your workflow that wasn’t changed by COVID-19, but your workspace may be the biggest. If you were accustomed to doing most of your work onsite and relying on a separate workspace for administrative tasks, you may find that this no longer suits your work dynamic. Many companies are shifting to offsite construction, mostly through the use of modular building practices. If you have discovered that you need much more space than you had before, or much less, it may be time to think about moving.

You’re Overpaying on Your Rental
A sudden decrease in demand for workspaces has led to a drop in prices in some areas. If you are overpaying on the rent you pay for your office or shop, you may be able to negotiate a better deal right now. Do some research in your area to see how often owners raise rates, and how much. It also may be practical to take this information to the owner or property manager of your current space, in the hopes of getting a discount on your next renewal. Keep in mind that if you have an active lease that’s not on a month-to-month schedule, you may have to pay hefty fees to break it early. It may or may not be worth it, so be sure to do the math before you pull the plug.

You’re Barely Making Ends Meet
Getting a big discount on rent for a workspace can be a boon, but you’ll pay for it at first. Rentals usually involve deposits and possibly the first and last month’s rent required in advance. While this might not be a big deal for an established business with a lot of assets, not everyone is feeling that kind of stability right now. In some cases, trying to cut your future expenses may have the potential to sink your business in the present. If your cash flow is running too close to empty, you may be better off waiting.

Pandemic Closures Limit Your Access
Many office complexes and coworking spaces closed during the pandemic, which made it far more difficult for tenants to get in and use the space. And while some landlords compensated by discounting or even canceling the rent, it was hardly the norm. If you were one of the lucky ones who enjoyed unimpeded access to one of these spaces, that stroke of fortune might serve you well in the future if closures happen again. On the other hand, if you were unable to retrieve your equipment or complete work offsite because your workspace was closed, you may need to consider alternatives.

You’re Not Sure What You Need
It’s hard to predict where construction will be in six months, much less in a year or two. As such, it is perfectly fine not to be certain what you need right now or going forward. This is a good indicator that you should stay put. If you can, give yourself the time to think. Revisit the subject in a month, when you have more information.

Finding a great workspace may be easier in the next few months than it will be next year or the year after. If your current situation just isn’t working, your contracting business may thrive better somewhere else. For more information about running a modern business as a licensed contractor, contact CSLS today!

If you look back at the way you thought the year would go in January, it might be hard to imagine a different conclusion. So much has changed in the past few months that the whole world seems almost unrecognizable. Yet, work will continue, and over time, you’ll find ways to get back to the jobsite. Here are five things you can expect will be significantly different, so that your contracting business will be better prepared.

Long-Term Changes in Demand for Projects
Industry experts have wondered regularly over the last couple of years when the backlog of construction projects would finally ebb. While it seems that 2020 has tipped the scale as they predicted, most people did not anticipate the way the demand for projects would change. In most instances, the predictions included a general decrease in demand for all projects, not a sharp decline in certain areas.

In this case, demand for commercial construction, specifically hotels, hospitality and retail spaces, has significantly dropped. Large hospitality industry stakeholders like Airbnb have seen a huge decline in demand and revenue. This means that while construction may see an increase in certain kinds of commercial and residential projects, there will probably be a notable decrease in demand for projects like these.

Adaptation to Remote Work and Project Management
Although it isn’t usually possible for construction-related businesses to do all of their work offsite, you’ll probably observe an increasing reliance on remote work. This may also be a good time to re-examine your project management practices. If you’re in the habit of keeping an eye on people as they work, this will probably have to change. Instead, you may find more opportunities to give your employees greater freedoms to control their own productivity. You may also discover developments to the modular construction segment of the industry. In fact, that may offer new career fields or an expansion of existing ones.

Heavier Reliance on Technology
Just like you can plan to spend more time off the site going forward, you can expect to use more online or virtual tools to collaborate and communicate. This isn’t necessarily a bad thing, of course. Using tools to get certain aspects of the job done more quickly increases your efficiency and may also improve your income. However, not everybody in the industry is excited to grab the latest app or device. This means that you may need to do more work to persuade subcontractors, clients and employees to get on board.

Increasing Project Delivery Times
Ultimately, one of the biggest hurdles that contracting business owners and clients alike will have to accept is that projects will simply take longer. The need to invest more time into safety, coupled with the importance of reducing the number of people on the site at any one time, makes it harder to accomplish more in one day. You may be able to minimize the worst of it by scheduling separate shifts. This may not be possible for all projects, or for all regions of the state at any time of year. If you want to reduce overrun in your project timelines, you will need to add in these factors and adjust your commitments as needed.

Greater Attention to Site Cleanup and Sanitation
Dropping work equipment and leaving debris at the jobsite was neither a clean nor sanitary practice. But now more than ever, people are putting their own lives at risk if they fail to clean up after themselves and ensure a sanitary workspace. The level of risk in any given area is going to depend on the state of the virus at the time. However, contracting businesses should prepare to clean and sanitize equipment and protective gear after each use. They will probably also need to provide PPE like masks and gloves, and additional hand-washing or sanitizing facilities.

COVID-19 has changed the world, and in many cases, your contracting business. The way you move forward helps determine your future. To start on your career path, visit CSLS today!

If your goal has always been to become an independent contractor, the independent part might be one of the most appealing aspects. You get to set your own hours and run your business in your own way. In an economic downturn where the whole industry has been turned on its head, you may need to collaborate. Here are five factors that can help you decide if forming a partnership would be a better path forward.

Related Fields
In order to form a partnership, you need to have someone whose skills and services relate closely to yours. If you’re finding that there are too many contractors and not enough jobs in your own field, you may want to find someone whose services and products are in an adjacent field. For example, if you find that you’re hiring the same subcontractor every single time you have a project, this might be an indicator that you have two businesses that could work well together. Be wary of duplicating your own skills, though. Unless you have more work than you can handle, doubling the paycheck obligations may not be enough.

Working Relationships
As a general rule, business partners get together as a result of a long-term professional relationship or other type of relationship. This means that you have to have somebody in mind before you can form a partnership. Advertising that you’re looking for a partner may take a lot longer, and it would be harder to tell if the people who are interested would make a good candidate to partner in your business. Think about the people that you have a good working relationship with, who aren’t employees. If you don’t know of anyone who meets this requirement, it might be time to beef up your networking skills.

Financial Stability
In the middle of an economic downturn, no one may truly believe that they are financially stable. But the last thing that you want when you start a partnership is for one person to be on great financial footing while the other is inches from disaster. This kind of imbalance can create a lot of conflict in the partnership, that may ultimately cause it to fail. Make sure that you are forming a partnership so that you can both help each other, instead of one person providing financial support to keep the other one going. A slight imbalance is manageable. But unless you have so much work and stable funding guarantees, you’re probably going to struggle to support two on the money that used to support one.

Balance of Skills and Services
Similarly, you want to confirm that both professionals have at least a moderate wealth of skills and services that they can provide. This depends greatly on the field you’re working in, and the nature of the industry at large. But typically, you both should have a variety of advantages that you can bring to the table. Don’t forget soft skills and other needs for business administration like sales and marketing. Ensuring that you can split tasks in a way that feels even to both of you will help to guarantee that everyone remains satisfied with the partnership going forward.

Collaboration
Ultimately, not everyone is cut out to be in a partnership. Sometimes, you can end up in a partnership with someone that is simply unsuited to work with you or vice versa. In other cases, you are just better off working by yourself. Think about the way you collaborate. If you can set aside your individual ambitions and work together to reach a consensus almost all of the time, then you will have a much higher chance of a successful partnership. By comparison, if you have a difficult time conceding the point to others, that may be a sign that you will have a lot of conflict in a partnership.

Forming a partnership is one way to run a contracting business, but you need to be sure you can do it right. To start on your career path in construction, contact CSLS today!

When you read about consumer or business confidence, it feels like it could mean a variety of things. What does it mean to be confident in a particular aspect of the economy? How does this data change the way that you make decisions for your contracting business? And what if people turn out to be wrong? With this information, you’ll understand what confidence means in finance and how it may affect your contracting business.

What Is Confidence?
If confidence feels like a somewhat nebulous standard of measurement, that’s because it is. Confidence is the way that people feel about themselves or some aspect of their world. It is not always an indicator of the way things actually are. However, finance experts use confidence as a way of determining what may happen in the future. People make decisions based on the confidence they have in certain aspects of the economy. For example, contractors look at their existing and expected sales and profit margins as a way of determining how confident they are in their own fields for the next several months or longer. It’s not a certain way of predicting the future, but it helps complete a more robust picture.

What’s the Difference Between Consumer, Investor and Contractor Confidence?
Now that you have a general idea of what contractor confidence means, you should know that there are indexes meant to measure confidence in other aspects of the economy. For example, you may read about increases in investor confidence in a thriving stock market, or decreases in consumer confidence based on rising housing prices. While you must keep in mind that confidence is highly subjective and heavily dependent on specific measurements, it can still give you an idea of what people plan to do with their own money. Specifically, if confidence in the economy starts to drop, you’ll notice that people will become more reserved in the types of financial risks they are willing to take.

How Does Confidence Affect Your Business Right Now?
At the moment, contractors are reporting lower levels of confidence in their ability to continue to grow sales and keep their profit margins high for the near future. As a business owner, you can imagine what those kinds of concerns may do for the way that you run your business. If you’re worried that you won’t be able to get enough sales this year, you might limit your overhead as much as you can. You may decide against hiring more workers, and if the trend continues, you may have to consider laying people off. This can affect the way that your business runs. That might mean that you have a simpler workflow, or it could mean that you have fewer services you can offer and more limited selection of projects.

How Can Low Contractor Confidence Change the Construction Industry?
Confidence in one aspect of the economy can change on a dime, but it depends heavily on the pivot point. Once people are worried about the future of their contracting businesses, they may make decisions that affect their ability to continue the business long-term. If these changes happen at the same time as lenders tighten loan requirements, or at the same time that a lot of other industries are noticing a drop in sales, there may be broader effects. Ultimately, part of rebuilding the economy after an economic downturn or recession lies in establishing confidence once again. After the last recession, it took a few years before the construction industry was able to run at levels even close to where they were before the housing crisis.

Contractor confidence may not mean a lot to you yet, but it poses serious long-term effects to your contracting business success. For more information about starting on a construction career path, visit CSLS today!

When the world is operating as usual, you probably spend most of your time on the jobsite. There, it’s easy to set goals and determine if you’ve achieved them. If you’re working from home or trying to manage an ad-hoc workspace, productivity takes on a whole new meaning. Here are some ways you can evaluate your work and set goals that are easier to measure and reach in a different working environment.

Communicate with Employees and Subcontractors
From the very beginning, you should communicate with your employees and subcontractors to get a sense for what they are able to do off the site. At present, lots of people are dealing with interruptions to their time due to trying to work with children or other family members at home. This makes it harder for people to focus, and can make it even more difficult for someone who needs to work on a dangerous task. Although productivity is important, it is also vital to start with goals that people can reasonably achieve.

Re-Evaluate Project Risks
If you are like many business owners, you conduct at least a basic risk management analysis for each project that you do. Some projects that you formulated prior to shelter-in-place orders may need to be re-evaluated. Specifically, you may want to look at timelines, budgetary concerns, and alternatives for components that you planned to assemble or build onsite. This will help you to figure out where you need to put most of your resources, and which areas are best for getting work done off-site.

Set Goals Based on Current Expectations
Businesses in a lot of industries will be finding their way to a new normal over the course of the next year. You can do the same by recognizing that the standards you set for productivity last year probably won’t work this year. Take a look at your current situation, including limits on where you can work and with how many people. Build in some flexibility if you can, to take advantage of changes in restrictions as they happen. Ultimately, be sure to keep your goals realistic not just for your employees, but for you as well. It serves no one if you are constantly setting standards for yourself and others that you simply cannot meet.

Aim for Self-Management
In a new, post COVID-19 world, your management practices will also need to change. If your standard so far has been to keep a close eye on everybody working under you, now is a good time to rethink that. People don’t tend to be more productive if they have the sense that a supervisor is watching them constantly. Micromanaging bosses in all sorts of industries are starting to find out what a productivity-killer this can be. Let this be an opportunity for you to invest in employees and subcontractors you can trust. That way, you can let them do their work and focus their time on productive activities, instead of responding to your monitoring system.

Use Tools to Collaborate
Since people working offsite and individually may keep different hours, being able to standardize your expectations and make them accessible to everyone is crucial. If you haven’t already started using online collaboration tools that allow everyone to look at goals for the project and the individual day, this is your opportunity to start. Collaboration is likely going to look very different for the construction industry in the next few years. Learning how to share visual updates and keep everyone on the same page can make it easier for you to measure progress and ensure that the workflow continues forward.

When you run a contracting business, productivity isn’t just a buzzword. Finding way to stay on top of it during a crisis can make the difference between success and failure. To get started, visit CSLS today!

States set orders to stay at home or shelter in place for a few weeks at a time. By this point, you’ve probably noticed that the dates have been extended more than once. This makes it harder to know when things might get back to normal. If you’ve been reading the news and reports from the rest of the world, you know that it may take some time before COVID-19 is no longer such a big threat and the healthcare system is equipped to manage it. These tips based on current assumptions can help you figure out what’s coming.

Track State Numbers
Although a state as large as California may have rates of COVID-19 that radically differ from one county to the next, keeping track of numbers at the state level is useful. At the moment, it seems that California may have hit the peak in cases reported each day. This could change, but it indicates that the existing stay-at-home orders are proving effective at slowing the spread. If you see a significant jump in numbers, you may need to prepare for a scaling back of the services that are currently considered essential. This could include construction, although it is unlikely that such a variable industry would be shut down at a statewide level.

Monitor National and International Concerns
If you were watching countries like China in January, you might have had a sense of what was on the horizon. Since the threat posed by COVID-19 is unlikely to be mitigated entirely without a vaccine, this means that you should pay attention to what is going on in the country as a whole and also elsewhere in the world. It’s reasonable to expect that if the western states lift restrictions and see a sudden rise in cases, they may choose to shut down again or restrict their services even further. The only way that you will know that this may be coming is if you are also watching what is happening outside of the state.

Anticipate Several Extensions
If your business is already teetering on the brink of insolvency because of the current situation, it’s tempting to think that you could start planning for the state to reopen. But it’s worth noting that the initial closures anticipated that they may be able to reopen at the end of March. Of course, now we know that would have been far too early. At present, experts say that re-opening much earlier than June or July is unrealistic. Still, you can expect government officials to extend stay-at-home orders by a few weeks at a time. This allows them the space to consider how the current limitations are working.

Expect a Slow, Regional Reintroduction
Just like other parts the world are beginning to re-introduce normal operations of society, you can expect that there will eventually be similar actions taken here. How it rolls out and when depends as much on the county that you live in as the state. Some counties with a higher population, or other reasons to believe they may be at higher risk for a resurgence, may choose to continue stay-at-home orders for longer. It’s important to balance the limitations set by the county as well as the state. For example, if the state lifts restrictions on how you can complete projects but the county doesn’t, you should plan to continue to practice social distancing on the jobsite.

Plan for a Resurgence
To protect yourself and your employees, it may make sense to keep up with many of the safety guidelines implemented as a result of COVID-19. Experts believe the COVID-19 is less likely to spread in hot weather. And while this means that summer might give a brief reprieve, it could also mean that the virus will come back in the fall. Do what you can to minimize the spread even if you think the threat is generally over. This will help to keep you in practice in the event that the state needs to place restrictions again later.

Stay-at-home orders will eventually be lifted, and you’ll need to be ready. To prepare your contracting business for whatever lies ahead, visit CSLS today!

Learning to answer questions may feel like a skill you picked up in preschool, but it’s more complicated than you think. Within a question, even a short one, may be assumptions and details that you miss if you’re not paying attention. Knowing how to break down a question can help you figure out how to answer it in ways that your clients, employees, and other people will understand. Here are five tips you can use to clarify your communication.

Listen Carefully
You’ve probably had many experiences where you needed clarification on something, and the person was so quick to answer that they didn’t actually listen to the question. When you know much more about the status of a project and its unique needs than the client, it’s tempting to assume you know whatever they are going to ask and can save time by answering quickly. But sometimes this means that you miss a crucial component to the question. This can lead you to giving an incomplete answer. Instead, listen carefully to the entire question and give yourself time to think about how you want to answer. Make sure to minimize distractions so you can pay close attention.

Get Clarification Before Crafting an Answer
In some cases, clients may be in such a rush or so worried about wasting your time that they don’t give you all the information you need to answer the question. For example, they might ask you about your expectations on the delivery of a particular project, but you’re not sure which aspect they need to focus on. In this case, it is perfectly acceptable to respond to a question with more questions. This allows you to make sure that you are getting all the details before you craft a reply.

Avoid Answering a Different Question
Many politicians and others prominent in public affairs are very good at listening to a question and turning it into something completely different. But if clients are to understand the details of the project, as well as your needs and expectations, you must answer their questions as they have asked them. Sometimes clients ask questions that indicate a concern about something else. For example, someone might ask you about when you expect to be done with the project because they are worried about when they will have to pay for it. But as a general rule, you should assume that you need to answer the question as the client indicates.

Tailor Answers to the Listener
The way that you answer a question depends heavily on the person who asks. You may be able to anticipate a much higher degree of understanding from one of your employees or a subcontractor than you would a homeowner with limited experience in the services you offer. Most people appreciate avoiding the use of jargon or making answers to questions unnecessarily complicated. Sometimes, people already think they know the answer and they just want to confirm it. If you can do so, you may be able to save a lot of time and hassle.

Follow Up to Confirm Understanding
It’s customary, after you have answered a few questions, to ask a client if they understand or if they have any other questions. But you should also know that it is customary for people to say that they understand or that they don’t have any other questions, even if they didn’t know how to interpret your answer. This is where you can ask them questions about their expectations and concerns. It may provide an excellent opportunity to confirm that they were asking the right question, and help to assure them that you are ready to clarify any aspect of the project as needed.

Working in construction means meeting with people from all walks of life, and learning to interact with them in ways that get both parties what they need. When you know how to answer questions efficiently, you can clear up confusion and make projects run more smoothly. To learn how to build a successful contracting business, contact CSLS today!

One big concern coming out of the COVID-19 pandemic is the sheer number of people in the United States who have no sick leave. If they contract the virus, many of them worry they would have to choose between staying home sick and paying the bills. The federal government recently passed legislation to provide some assistance to people working for certain kinds of businesses. But since paid leave by the federal government is a new concept, there are a lot of details you need to know. Here’s how the new law could affect your contracting business.

What Are the Basics of the New Paid Leave Law?
The fact that the federal government has never mandated paid leave before creates a lot of questions. Prior to this point, the closest available has been unpaid leave based on the Family and Medical Leave Act of 1993. There may be adaptations or updates to the new paid leave law over the course of the COVID-19 crisis, but here are the basics:

• Employees of qualified businesses with fewer than 500 workers may be eligible.
• Workers who must stay home due to a coronavirus-related sickness or mandated shutdown may be able to get up to 80 hours of paid leave.
• The amount is based on their regular income and the reason for leave, e.g. sickness or need to care for another family member.
• Employers are expected to pay for the leave and then request tax credits.
• The law applies to leave taken after April 1st, 2020 and by December 31st, 2020.

There are some exceptions, so it’s important to check on your eligibility and consult with an accountant, as needed.

How Does This Law Relate to FMLA?
FMLA has been around for 27 years, and the new paid leave laws are being administered as a part of it. For decades, FMLA has provided up to 12 weeks of unpaid leave for qualified employees without worry that they will lose their jobs. Traditionally, they’ve needed to work in the job for about a year to qualify. The new leave law makes a few changes tied specifically to the COVID-19 pandemic:

• The law expands eligibility to employees who have worked with a company for 30 days.
• It requires qualified employers to paid for up to two weeks paid leave for virus-related healthcare needs and closures.
• Employers may also be required to pay up to 10 weeks paid leave for parents who can’t work due to school and childcare center closures.

Many of the ways that employers can administer these policies are tied to FMLA. Companies that already have leave policies under this guideline, such as requiring employees to use all their accrued sick pay or vacation time first, may be able to apply them to this law.

How Does This Law Relate to Contractors?
This rule, and the tax credits, apply to most companies with fewer than 500 employees. This means that even if you have only a few employees, you probably are not exempt from these requirements. Many contractors may be surprised to learn that there are provisions for self-employed workers. This means that if you are out of work due to COVID-19, you might be able to claim the credits on your 2020 taxes or adjust your contributions to your quarterly estimated tax payments.

Where Can Contractors Get More Information?
Given that the requirements come right now and tax credits usually come later, it’s not surprising that people are confused and have a lot of questions. The IRS maintains a section on its website with frequently asked questions about the policy. Contractors can also check the U.S. Department of Labor’s website for updates to the policy and clarifications.

Keeping a business going during COVID-19 is a struggle. The paid leave laws may help, but contractors need to pay close attention to the details. For more information about starting your own contracting business, visit CSLS today!

The longer you develop your business, the more opportunities you have to build relationships with business partners. Your contractors, subcontractors, supply chain and other companies help to keep you running smoothly. When you do it right, it’s a win-win for everyone involved. The trick is that you have to maintain the relationship so that it’s always there when you need it. Here’s a few ways to make it a priority.

Get on a First-Name Basis
You hear a lot about business success not being so much what you know, as who you know. In a competitive industry with a lot of small contracting businesses, this is certainly true. The better someone knows you and your work, the more likely they are to call you first when they need something. This is where all those networking skills come in handy. Whether you’re a B2B or a B2C, selling your services is paramount. You need to make sure that people with the right connection in the industry not just know your name, but can remember it. You can do this by communicating with them on a regular basis and remembering who they are, as well.

Keep Tabs on Your Contractors and Subcontractors
Businesses change names or switch owners all the time. Your job is to know who you need to talk to and how best to reach them. Once you get this information, write it down in a place where your employees can get easy access to it. At least once every six months, follow up with your most important business partners and confirm that your contact information is correct. The last thing you want to do is end up with a dead phone number or an email address that now goes into a black hole, right when you need it most.

Give as Much as You Take
Everyone has a friend who only comes around when they want something. Not surprisingly, there are plenty of businesses that run on the same premise. If you’re always asking for favors and not offering something in exchange, you may find that businesses are less interested in maintaining the relationship. Instead, make sure that you reciprocate on a regular basis. If you’re at the point where you might consider someone a colleague or a friend, get together for lunch or coffee on occasion. This little effort can remind someone that you’re a valuable part of their own business success.

Keep Your Promises
A lot of making sure you have a smooth workflow involves keeping up with your business partners, but there’s another step. You need to be a person they want to continue working with. When you first get started, it is really tempting to overpromise as a way to secure a bid or contract. The trouble is that if you underdeliver, you’ve given a cast-iron reason not to work with you again. Sure, completing a project late and over budget is practically part of the job description, but that doesn’t mean people will be happy about it. Set realistic goals you know you can achieve, and let your reliability secure your reputation.

Build Redundancy Into the System
In a field like construction, turnover is as predictable as the Santa Ana winds. The difficulty with cultivating long-term relationships with your subcontractors or supply chain is that you’ll develop relationships that break from time to time. This is where you want to build some redundancy into the system. If you have an employee who always talks to a particular company, make it a point to call them yourself on occasion. This helps them remain familiar with you, as you are with them. It makes for a more seamless transition, when one of your employees needs to move on.

Running a successful contracting business requires help from other businesses. To get their regular assistance, you need to develop a relationship that you can maintain for years to come. To learn how you can become your own boss in construction, contact CSLS today!