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hello everybody dennis engelbrecht with the family business institute digging deeper today is the last in a series of four discussions about how to deal with the extreme pricing and supply chain disruption uh aspects of today's construction economy and you know we kind of are calling that the new abnormal and you know this could go on for six to 12 months possibly even longer that that we're trying to deal with this craziness in the construction market so the last aspect that i want to talk about from this craziness is really managing your pipeline and your resource schedules and construction even over the last five to ten years there's been a definitive trend toward not knowing when projects are going to start and that of course has caused uh you know disruption right on through the chain of you know construction companies because if you don't know when a project's going to start it's very hard to plan your resources and especially if you go downstream and you're at the trade level and you've got a couple hundred people working for your company and you don't know when your projects are going to start and end you don't know how to load those resources and whether to take on additional projects or not because you're very uncertain about you know what the schedule is going to be for for your people the people you have to commit and even as you go to the general contractor level you know you've got your superintendents and your project managers and if a project doesn't start gets delayed for several months well you have two problems there one is uh of course idle people uh for when things push and then the second problem is for when all of a sudden everyone says okay time to go again and now you know you've got you know you don't have a superintendent available or you've got too much piled on a project manager or you're having to pull a superintendent from a prior job before it's over or start a project with an assistant superintendent all of those all of that craziness that's going on well this has been going on for a while now for several years in fact it takes more backlog now as a percentage to produce your annual revenue than it used to if that used to be at eighty percent it's probably now at ninety or a hundred percent if it used to be at a hundred percent of your expected revenue it's probably now at 110 or 120 percent and that's because continually we're seeing projects spend longer in pre-construction and more projects delayed and pushing out and of course covet accentuated that and now we've got the whole pricing and supply thing which is creating more disruption so what do you do about that how do you plan in a in what's almost could be described as chaos in terms of when you can get projects launched started committed to uh and and when they actually occur well first of all again there is no magic bullet for solving this uh because you know it really is you're trying to deal with an unknown and a continued set of unknowns so i you know number one recommendation is overfill your capacity first of all if if you're stuck in that old paradigm remember it takes more backlog now to produce revenue because it just doesn't start on time and continues to push so you have to take some chance and overfill or else you find yourself you know with various soft patches during the course of the year and you end up with your bottom line impacted by those soft patches and difficulty maintaining your your manpower and your flow of work for your superintendents the next thing is you know it really needs again hyper management and super flexibility uh you can't look at your manpower schedule you know looking out 12 you know 6 12 or 18 months and assume it's going to stay the same it seems like today it's changing weekly uh and almost daily uh as projects push and new thing comes on board and all that all of a sudden somebody says go and you're off to the races so you've got to stay flexible um you know the hard bid market is a place where a lot of people are are filling these holes as they develop unexpectedly to try to keep their manpower working uh so you know look for those holes also by the way say you know if if if you're at the general contractor side your subcontractors schedules are being delayed and pushed as well and again it it's like we're in a system where it's nobody's fault but that actually creates some opportunity so if you get projects that all of a sudden want to start uh you may be able to go out in the market and go out a little broader and find people who now have holes as well who can fill into those holes that all of a sudden have been created by your schedule changing so it really takes super flexibility uh you know on the project acquisition side takes super flexibility on the manpower planning side uh you know at times you may have to run some projects you know lower on manpower in order to you know have an extra project running alongside of it all of this is really taking a lot of flexibility to be able to accomplish all this without missing your schedules missing your deadlines for the projects you're committed to so a couple of things one is you know overfill your your pipeline because it is going to push it is going to move number two maintain flexibility and number three you know stay on task on a sort of a daily and weekly basis so you can make adjustments uh and and sort of go with the flow as things change on that daily or weekly basis again dennis engelbrecht trying to solve the new abnormal thanks for tuning in

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