Slack & Co.’s New Office Building Wins Project of the Year Award

February 2, 2010 by slackandco

On Friday, January 29, the Houston chapter of the American Subcontractors Association (ASA) held the 13th Annual Excellence in Construction Awards ceremony at the Junior League of Houston. Our new office building and maintenance facility (built by Construction Manager Linbeck) won the Project of the Year Award in the Projects Under $5 Million category.

Winners of Excellence in Construction Awards are nominated and voted for by chapter members. Awards are given in eight categories, including Project of the Year (over $15 million, $5-15 million and under $5 million), General Contractor of the Year, Architectural/Engineering Firm of the Year, Project Manager of the Year, Project Superintendent of the Year, and Safety Director of the Year.

It is an honor that our project was selected by our fellow members for this prestigious award. Congratulations to Linbeck, Owner’s Representative Pin Oak Interests, Architect Michael Graham, and all the specialty contractors that worked so hard on this project.

A complete list of this year’s Excellence in Construction Awards winners can be found on the ASA-Houston Chapter’s Web site by clicking on the Special Events page.

We Have a New Look.

January 29, 2010 by slackandco

You may have noticed Slack & Co. has made a couple of changes recently. From our office building to our Web site, we have a new look that we are proud of!

Our new office building (located at 2990 Holmes Road, Houston, TX 77051) was completed in the middle of December and we moved to the new location right away. You may remember some of our departments were previously located in temporary buildings due to growth in recent years. Our new office has plenty of room for all of us under one roof! We’ve already found this has increased productivity and collaboration across departments, allowing us to better serve our clients.

In addition to these physical changes,  the updates we’ve made to our Web site provide us the opportunity to better communicate with our clients and vendors via the Internet. One of the most exciting additions to the site is our company video. Check it out! You’re sure to see some familiar faces as you hear more about how Slack & Co. is working to build success for our clients, vendors and employees.

Slack & Co. Featured in Constructor Magazine

January 22, 2010 by slackandco

The November/December 2009 issue of Constructor magazine, features an article called “Helping Specialty Contractors Beat the Recession.” Author H.L. Hild asked me several questions about issues that  impact specialty contractors and our industry as a whole. I am honored to have been selected as a spokesperson for my fellow specialty contractors and to represent the AGC Specialty Contractors Council.

Read the article here: Helping Specialty Contractors Beat the Recession

New Hybrid Excavator to Debut at the Slack & Co. Offices

December 15, 2009 by slackandco
Tomorrow, December 16, Komatsu America Corp. will host an equipment introduction event at the our new offices. The event will introduce Komatsu’s new “green” excavator, the Hybrid PC200LC-8.   

The development of the hybrid excavator helps meet market demands for green construction equipment and reduces environmental impact. Powered by the Komatsu Hybrid System, the new Hybrid PC200LC-8 excavator uses cutting edge technology that reduces fuel consumption and CO² emissions.

Several fuel consumption tests have been conducted comparing the new Hybrid PC200LC-8 excavator to the Standard PC200LC-8 excavator. Results of these tests reveal that depending on the application, the hybrid model consumed 25 to 40 percent less fuel than the standard model.

Komatsu is releasing two of their hybrid excavators to the Houston market for a six-month testing period. The new excavators will be available in 2010.

More information on the Komatsu Hybrid PC200LC-8 can be found at www.komatsuamerica.com.

 

 

 

 

 

We Made The List!

November 6, 2009 by slackandco

Slack & Co. Contracting, Inc. was recently listed on the  Engineering News-Record (ENR) 2009 list of top specialty contractor firms in the United States. This is our third time to make the list and this year, we earned the rank of 452!

ENR’s annual list ranks the 600 largest specialty contractor firms in the nation based on the previous year’s revenues. In 2009, a total of 46 Texas-based specialty contractor firms made the list, 19 of them from Houston.

We experienced tremendous growth in 2008, despite the unfavorable economic conditions our market faced during the third and fourth quarters. Our team is very dedicated to Slack & Co.’s success and we are proud to be named among the many successful firms in Texas and across the nation.

E-Verify Reminds Construction Industry of Age-Old Employment Issues

September 10, 2009 by slackandco

This week, federal contractors with contracts of more than $100,000 and federal subcontractors with contracts of more than $3,000 will be required to use E-Verify to confirm the eligibility of all persons hired during the contract term, regardless if they will be working on the federal contract.

With the debate and discussion that surrounds E-Verify, I am led once again to an age-old employment issue—how and where do you find eligible, qualified employees? Employment is an even hotter topic today in light of the layoffs that many companies have undergone in efforts to right-size their companies to endure the down economy.

So I throw these questions out to you—how and where do you find good, qualified workers who are eligible for employment and who WANT to be working in the construction industry? And, when you find those people, particularly in light of our current economic environment, do you hire them on to build your staff for the future, or do you hold out until you have more work to support new hires and risk losing them to another company?

 Let’s talk about the employment issues your company is tackling—I’m interested in what you have to say.

Let’s Keep the Conversation Going.

July 23, 2009 by slackandco

I would like to thank everyone who has shared their experiences and thoughts in response to the white paper, “Can you Afford the Lowest Bid?” This is a hot-topic that hits close to home for many companies, including general contractors and specialty contractors. The discussion taking place in this space has even initiated forums on LinkedIn and constructionexchange.com.

Comments and responses offer us valuable insight into the perspectives of different industry players, suggest steps for change and highlight the many angles of this tough issue.

As the discussion continues, I’d like to encourage participants to address two additional aspects of this topic.

To specialty contractors I ask:
Can you afford to be the lowest bid? (If you are not sure, read the cover story in the June 29, 2009 issue of ENR for discussion surrounding the dangers of reduced margins and long-term impact on reputation).

To general contractors I ask:
Can you afford to work with the lowest bidder? As Keith Elliot’s comment points out—there are dangers of working with inexperienced or unqualified bidders.

 Please share you thoughts and keep this conversation going.

Can You Afford the Lowest Bid?

April 30, 2009 by slackandco

Article By Jim Slack, Jr.

 

No doubt about it, low prices win work in the construction industry. But what is the cost of letting price rule business decisions without careful examination to ensure accurate cost comparisons? Truth is a low price can be deceptive if it doesn’t include the full scope of work a project requires. At the end of the job, the low price may not be as low as it at first seemed.

 

Imagine this scenario: When the ACME Tower project began, Subcontractor John Doe hit the ground running. A couple of months in, the general contractor begins to wonder about the reasons behind a few hold ups and notices quite a few change order requests coming in from John Doe. Seems many of the items being submitted as change orders should have been included in the original estimate. Although it is too late, the general contractor decides to compare John Doe’s bid to the other, higher, prices he received. Turns out that several of the higher bids were actually more complete and even though John Doe’s price was the lowest, his bid left out key components of the job.

 

In this economy, it is especially tempting to choose a subcontractor because they submitted the lowest bid. While the low bid is always attractive, it’s important to know if the estimator did his due diligence to understand the scope of work and prepared an appropriate plan of action. A complete bid will show that the estimator took a ”what will it really take to build this job correctly” approach and came up with unique solutions that can save time and money without sacrificing quality. In other words, the complete bid is always the right bid, regardless of the price.

 

It’s hard to see these nuances when looking only at the bottom line of a bid. Unless it is known how the subcontractor got to the price presented on bid day, it’s dangerous to use a price-only comparison when awarding work. John Doe’s ACME Tower bid is a perfect example of a bid that was submitted incomplete; chosen because it was the lowest bid; and in the end, cost the owner more than competing bids that were more comprehensive.

 

I have long committed my company to the goal of submitting complete and honest bids, even if they are not the lowest. I believe this goal differentiates Slack & Co. in an industry where this mentality is becoming more and more unique.

 

Sadly, a truth exists in our industry that is becoming harder and harder to ignore: there are subcontractors who are intentionally submitting incomplete estimates so they will be the lowest price on bid day. They know that being the low bid means they win work. As long as there is a feeling among subcontractors that price is the only factor general contractors consider, the bidding game will continue to be played dishonestly. Not only does this behavior tarnish the integrity of our industry, but it also ultimately hurts projects and owners.

 

Action must be taken on both sides of the equation to improve the bidding process. General contractors must ensure they are comparing scopes of work when reviewing bids. And subcontractors must remember their responsibility to be good stewards of the owner’s money—meaning they must in good faith, present a bid that is complete to the best of their knowledge.  

 

It seems that one way for general contractors to fully understand the scope of work presented on bid day is to offer an opportunity for competing subcontractors to explain what their cost entails and outline thoughts for how to deliver the job efficiently. Discussing details forces subcontractors to be honest about what their price includes, allowing general contractors to easily see which bids are complete and uncover those that are not. Unfortunately, subs are often guarded about sharing the very details general contractors really need to know to make an informed decision in awarding a contract because experience has told them that some general contractors may ask a competing sub to provide pricing based on the solution they share.

 

There is a negative cycle at work here we have to break. If we don’t trust one another we cannot work together effectively. We are all on the same team. We should consider ourselves partner firms.

 

Industry-wide, we must set higher standards for ourselves. General contractors should have faith that subcontractors are submitting estimates that are accurate and comprehensive. The subcontractor who uses their ingenuity and knowledge to present the best solutions in a complete bid should be awarded the work. And subcontractors should have confidence that general contractors are comparing bids on more than the bottom line without disclosing the subcontractor’s unique ideas.

 

By doing business with integrity and accountability, and making fair practices policy, we all win. If we don’t and we continue to perpetuate deceit among one another, we all lose—general contractors, subcontractors and owners alike.

 

When I stand back and look at this situation it frustrates me. Yet it also inspires me to attempt to start an open conversation about how we, as an industry, can work to instill a stronger sense of business ethics and higher standard of integrity for the way we work.

 

So, now I ask you to sound off. What are your thoughts on this issue? What suggestions do you have for how to move forward and raise the bar?  The future of the construction industry will be built on the decisions and practices we put in place today. Please comment and share your thoughts in the space provided below. 

 

Presenting a bid that matches the full scope of a project is a standard that Slack & Co. strives to always meet. Asking questions, offering suggestions and doing our homework at the start of the project are part of the pre-construction services we provide our clients when estimating a project. Taking these steps before a project begins helps ensure we get it right the first time, minimizing unexpected costs and delays down the road. Our clients can rest assured the price we present covers every last detail. That’s how Slack & Co. builds success.