Fraudulent activity rises
How can you ensure compliance when regs are rapidly changing? What can you do to deliver Day 1-ready projects? And why should you review safe digging procedures with your crew? This week's edition of The Level provides insights on these issues and includes a local market look-in from a business banker. But first: "Nearly one in four construction workers are noncitizen immigrants," says the New York Times, which takes a look at how immigration policies and tariffs are set to roil the construction industry.
>> Show me the money! Bradley Hartmann (@bradleyhartmannandco on Instagram) serves up sales advice and leadership lessons specifically for construction teams in easy-to-digest bites.
>> Listen up. The latest episode of the Design Build Central podcast showcases a proactive approach to managing vulnerabilities specific to your business and the general uncertainty impacting your customers and the economy.
>> Expert opinion. JLL analyst Andrew Volz's latest report reveals core tactics for taking on the challenges facing our industry, including being more strategic about capital planning and sourcing options.
>> Back to the future! The Engineering News-Record's next conference delivers a deep dive into the "revolutions, evolutions and inventions" that drive construction productivity, efficiency, safety and profits. (May 6-7, San Francisco)
>> Just for fun. Just-released LEGO sets include a Tudor-style home and Iron Man's fancy lab.
'Plan carefully for economic fluctuations'
While it's important to stay up on regional and national trend lines, understanding how they impact enterprises closer to home is crucial, too. Commercial bankers have a unique perspective that allows them to gauge the sentiments and concerns of local business owners and contextualize the issues. We checked in with Steve Eck, managing director of commercial banking at FNBO, to find out what financial issues construction clients in Omaha, recently named the nation's top housing market, are focusing on. -Margot Lester
What's the overall mood of the Omaha business community?
Leading the commercial banking team in our community, I spend a lot of time with companies who are contemplating all stages of growth, expansion and next steps. FNBO is seeing and hearing a lot of positivity and optimism in the business community.
What are you hearing from your construction clients?
While construction businesses do not seem to be planning for recession, they continue to plan carefully for economic fluctuations, which seems to be the new “business as usual.” Balance sheets continue to show strength and backlogs of the work ahead are consistent with what we saw a year ago.
What other issues should construction leaders monitor?
One challenge for this industry, as in many others, is a continuing rise in fraudulent activity. It’s important for customers to discuss fraud trends with their bank and work together, as partners, to mitigate these threats and protect their operating accounts. A great first step would be implementing products such as check and ACH positive pay [which flags suspicious transactions before they are posted to your account]. We are consistently educating our customers on fraud trends and important tactics to protect their businesses.
This interview has been edited for brevity and clarity.
Make your healthcare project Day 1-ready
A recent survey of hospital and health system managers and executives who oversee construction projects identifies best practices for ensuring new and renovated buildings are ready to go on Day 1.
Conducted by the American Society for Health Care Engineering’s Health Facilities Management magazine, the survey shows that more than three-quarters (80%) of survey-takers are now commissioning building equipment and systems (BSE). The top three are:
- Fire safety
- Building automation and control
- Electrical
Other tactics to ensure readiness include:
- Policies for BSE training (79%), building tours for staff (64%) and emergency management drills (57%).
- PDC contract language requiring BSE training (83%) and commissioning (76%), and meeting with the facilities management team during the PDC process (77%).
Why it matters: Delivering Day 1-ready projects not only avoids costly fines and assessments; it builds your reputation with prospective clients as a reliable contractor. (Health Facilities Management)
>> Tariff Troubles: Homebuilders report huge materials price increases
>> Building Boom: Logistics space demand expected to soar
>> Survey Says: Construction still struggling to fill openings
>> Funding Fiasco: President axes $12.4B NSF building budget
April is Safe Digging Month!
Dig this: The easiest way to avoid damaging buried utilities is to locate them before you break ground. It's as simple as 1, 2, 3:
- Call 811 or your state’s public utility location service.
- Designate a point person to communicate findings from the locate contractor to the job site.
- Train site managers and crews on the American Public Works Association Uniform Color Codes.
Why it matters: According to data from the Common Ground Alliance, contractors were involved in 83% of natural gas-related damages and 92% of telecom-related damage to underground utilities. (Nationwide)
Improve compliance with a proactive approach
It's hard to ensure compliance with rapidly changing federal and state regulations on paid leave, taxes, retirement, privacy and wage and hour issues. Experts suggest that a proactive approach is the best way to avoid miscues.
- Stay informed and adaptable.
- Review tax and employment law updates regularly.
- Update policies to reflect new requirements.
- Deploy technology to improve processes and manage data.
- Consult your attorney.
Why it matters: Responding quickly and correctly to changes empowers you to reduce risk, maintain compliance and improve organizational performance. (HRO Today)
- Be a building-code beast! Tune into this episode of the ICC Pulse podcast to learn the benefits of earning your Master Code Professional credential.
- Get up close and personal. Use the Impact Map to gather data for information decision-making with real-time information on how federal funding/contracting, employment and policy decisions affect your business, your customers and your community.
- Turn it around. Learn how to bounce back from setbacks in this TED session featuring leadership coach Amy Shoenthal.
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The Level is written by Margot Lester and edited by Bianca Prieto.
