Listen in as Patrick, Sue, Megan, and McKall give their professional backgrounds leading up to their joining the AFT team and the scope of their current roles.

McKall dives deep into the process of calculating for profit with your WIP and how to stay within realistic margins as your projections change every month towards the completion of a given project.

Patrick, Sue, and Megan talk about the biggest risks in the construction industry, navigating cashflow challenges throughout a project, and how to write a forward-looking contract that minimizes these risks by adequately defining scope-of-work.

Finally, the team discusses billing regulations in Arizona and whether trade partners should have any variation in a contract. They also speak on the immense value of site visits and working with designers and architects.

Brought to you by Pella Windows

Topics Discussed: 

• [01:35] An introduction to Megan, McKall, Patrick, and Sue
• [05:12] Our team’s backgrounds and career lessons they brought into AFT
• [16:24] What your WIP tells you
• [22:12] The biggest risks in the construction industry
• [29:43] How a company can be effective at scope-of-work
• [36:10] Managing time as Project Coordinators
• [41:00] Fighting through the cashflow challenge in a timely manner
• [48:44] Continuing education and staying on top of issues and trends in the industry
• [51:15] Navigating price increases
• [56:13] Managing expectations with team members, vendors, and clients
• [1:00:39] The Arizona Prompt Payment Act and AIA contracts
• [1:00:55] The value of site visits
• [1:12:04] The pros of working with a designer and an architect
• [1:14:46] Advice to younger companies

Key Quotes by the AFT team:

• Being in-house makes a really big difference because then you have someone who can do an actual analysis of what’s going on and give you a real picture of what needs to change in order to get you to where you want to be, financially. ~McKall
• The biggest risks in the construction industry, for me, are construction defect claims; job site-related issues such as injuries or property damage; and labor and material shortages along with price volatility. ~Patrick
• We have a standard at AFT, and we want to make sure that our subs are going to uphold our brand and standard. ~Patrick
• What’s been beneficial for me is going out to site visits and seeing what is on the plan come to life. That is like a stepping stone for other projects. ~Megan
• The biggest thing is to not forget how important your policies and procedures are because that can actually make you a lot of money. Have a clear path. ~McKall