For project owners, there’s no magic formula for evaluating project costing, cost-benefit analysis, or ROI from one project to the next. However, not taking a hard look, on a case-by-case basis, ignores an issue central to profitability and blindly accepts unnecessary risks. Partnering with reputable union affiliated contractors ensures a culture of risk aversion and mitigation, and ultimately safer and more financially viable construction projects.
A contractor’s culture of risk aversion is often reflected in their policies, practices and procedures. For union affiliated contractors, it’s reflected in whom they choose to partner with to strengthen their most valuable asset, namely their workforce in the field. This professional partnership ensures greater contractor performance through higher quality, fewer delays, greater price controls, and an emphasis on worker and project safety.
Experience and Reputation
Through specialized training and industry certifications, contractors can lean on their field leaders to get jobs done to spec. It’s been this way for years, enabling union-affiliated contractors to grow their experience in all settings so they can meet the demands of any project, no matter how simple or complex, and no matter how small or large. This results in greater productivity and efficiency at all levels.
Aesthetics and public perception matter too, so it’s good that owners don’t have to sacrifice form over function. The level of care and attention to detail a skilled tradesperson provides creates more opportunities for contractors to bring that added value for their clients and their projects. A higher level of artistry permits contractors to move fluidly into other project types, like repair and restoration. Partnering with union contractors is also good for public relations, because it says a lot about your company if you’re willing to hire the most highly trained, safest workers in your community. Not to mention that you’re helping to keep it local, supporting the people and families who live in your community.
On Time Delivery and On Budget
When selling a pro-forma, one of the main factors of a smart investment is how quickly the developer can get the leases filled up. Delays can disrupt anticipated cash flow, placing unnecessary financial strain on the smallest aspects of a project already under development, not to mention the financial viability of the entire endeavor.
Owners, developers, investors, contractors and workers all have a financial interest in making sure a project stays on schedule. Bad estimates, poor production, subcontractor failure and default, and price escalations can result in excessive change orders, disputes, delay damages, liquidated damages, and litigation. That’s why it’s critical to engage with a team that understands the financial ripple effect of cutting corners, and who refuses to compromise on doing things the right way.
A Culture of Safety
How a contractor treats their workers will be directly reflected in how those workers treat your construction project. The decision to hire a contractor who emphasizes safety pays dividends in terms of a project with limited safety incidents. This is not only the morally right thing to do, but also helps avoid unnecessary and unforeseen expenses, and builds good will with community stakeholders.
By choosing a union affiliated contractor, you’re hiring an industry that has built a culture of safety. From safety plans and site walks, to advanced safety training and certification, the union building and construction trades ensure that their contractors have the safest workforce in the industry. Everyone involved has a vested interest in making sure that every crew member leaves every job site safely at the end of each shift.
Stats like EMR, loss rate or incident rate should play a huge role in how a contractor is selected. Reputable contractors with a focus on safety will have safety managerial roles within their company and job site programs to promote safe habits for their tradespeople. A contractor’s position on safety ultimately reflects how they run their projects and how your money is spent. Each union contractor understands the direct correlation between a safe job site and higher returns for themselves and their project owners.
Beyond the human toll, contractors still have a business to run, and the real costs of accidents add up quick. Hard costs can include medical bills, equipment damage, fines and lost time. Soft costs pull resources from other priorities, and can include time spent investigating and responding to claims, and delays and shutdowns. Not to mention the drag on reputation and morale, affecting procurement of future work and retention of employees.
Protect Your ROI, Build Union
Basically, just think of the extra volume of work a contractor needs to perform to make up for any one of these financial losses. Now extrapolate this concept to any other stakeholder with a financial interest in a construction project, and it’s quickly apparent why it’s vital to partner with an industry ready to protect your ROI.