An Industry Ready for Rapid Change

When my wife and I were new parents, our go-to parenting guide was a book by pediatrician T. Berry Brazelton called, “Touchpoints.” The premise was that children go through rapid cognitive and development changes. They can, literally, grow over night. Brazelton calls these “touchpoints.” The idea that we grow and improve a little bit at a time in a steady progression is false. Our bodies and minds grow in leaps and bounds.

93% of parents of current high schoolers would support their child’s choice to pursue a career in the skilled trades. 57% would offer major financial support to pursue that option.

StrataTech Education Group Study

At a touchpoint, such as a when a child is learning to talk, they often forgot how to do things they had previously learned. In simplest terms, the new advancement requires so much energy and concentration that previous improvements are forgotten. A child learning to talk may struggle with walking. It feels like they take a step backward. Also, during these developmental leaps, children are fussier and don’t sleep as well. Then, boom! They start talking, remember how to walk and move on to build-up to the next touchpoint.

In evolutionary biology, this change process is called punctuated equilibrium, and I believe industries and businesses follow the same pattern. We change by leaps and bounds, in sudden bursts and not by incremental steps. And at the moment of change, things can get messy.

In the last few months, I’ve spoken with hundreds of people in the industry, ranging from residential and commercial contractors to architects to suppliers to building product manufacturers. I’ve also had the opportunity to talk with leading experts on the industry. If I can take away one thing from those conversations, it would be that people are optimistic about the future of the industry but recognized we are in a very uncertain period. A messy period.

The COVID pandemic turned our world upside down, upsetting supply chains, work requirements, demand for services, etc. That disruption has mostly abated , although it is not nearly as clearly identifiable what isn’t working well. There are not just a few big things going wrong; there are lots and lots of little things failing, and there is a malaise of uncertainty that is washing over the industry.

To me, that means we’re nearing a massive leap forward. Job-site technology, business software processes, and cultural influences are all changing rapidly and their effect on our industry will be massive. Consider that the number of parents actually encouraging their children to go into the trades is increasing. It’s unheard of in my lifetime. A survey in 2019 by StrataTech Education Group found that 93% of parents of current high schoolers would support their child’s choice to pursue a career in the skilled trades. 57% would offer major financial support to pursue that option.

That, ladies and gentlemen, is a huge change in cultural attitudes.

My conclusion? The construction industry is poised not for a small leap, but a significant change. Unlike with pediatric development, though, we don’t have any data or patterns that we can point to that would suggest what the developmental process might be.

What does the future of the industry look like? That crystal ball is clouded, but the only thing I’m 100% certain about is that how we will be working five to 10 years from now will look very little like how we work now.

Every Worker Goes Home After Work

The most important job in construction is for every worker to be safe

When I was a kid, we didn’t wear bike helmets. We didn’t skateboard with knee and elbow pads. We didn’t climb on plastic jungle gyms with rubber pads beneath them. But you know what? A lot of kids from my generation didn’t survive childhood because we didn’t do those things.

The U.S. Bureau of Labor Statistics data show that the rate of construction fatalities hovers between 9.5 and 10 per 100,000 workers annually.

The same is true with construction safety. When I was a carpenter, we didn’t tie off. We didn’t wear hardhats on residential projects. We didn’t wear eye protection. What we did do was remove guards from table saws, and I spent a lot of days stripping paint with a heat gun. Paint that probably had lead in it. (No comments, please, on how that was appropriate training to be a journalist.)

People and pundits are calling the current younger generation the “Fragile Generation,” which is guarded by overprotective parents who sport monikers such as “helicopter parent” or “bulldozer parent.” Stories of parents sitting in on job interviews abound.

Yes, we may have gone too far in our overprotectiveness. And our hyper focus on dangers that are rare compared to real dangers has caused us to make curious choices. For example, on average about 350 people under 21 are abducted annually by strangers, and a very, very small percentage of them are murdered. In 2011, it was 17. But that scenario looms large as a fear among parents, who routinely strap their children into automobiles, where we lose on average 11 of them a week to car accidents.

But I don’t think we’ve gotten anywhere nearly overprotective enough on job sites. We’re still learning how to improve our best practices, safety equipment, and training. The U.S. Bureau of Labor Statistics data show that the rate of construction fatalities hovers between 9.5 and 10 per 100,000 workers annually. With a couple of exceptions, it has done so for the last decade.

I have no doubt that our best managed general contracting and trade contracting companies run excellent safety programs that focus on making sure their employees understand and follow best safety practices. But our industry also features a lot of companies that pop up today and disappear tomorrow. They’re money spinners at worst and incompetent at best.

If we’re going to improve the safety performance of the construction industry, we need to find a way to reach those companies and get them to start caring. Caring about their workers. Caring about their worker’s families. Caring about themselves.

I wish we could remove incentives, such as lowest-price contracts, to discourage the fly-by-night operators. I wish we could through market forces even the playing field so that quality would rise to the top. I wish I could convince those owners that the best way to learn how to run your company is by joining a trade association and getting exposed to the best practices of the best companies.

Unfortunately, the most efficient way to manage safety across the industry and establish minimum standards is through government regulation. Every company pays the price for the bad actions of the worst of us. They spend a lot of time dealing with regulations that may or may not be beneficial to improved safety. They live in fear of the OSHA inspection and/or fine for a minor incident that could irreparably harm their company.

Unlike some government regulations that teeter on the edge of diminishing marginal returns, though, safety regulations have a very specific and important benefit: workers go home to their families at the end of the day.

Dealing with government safety regulations isn’t nearly the highest price you could be paying.

First Day on the Job

The first day on a jobsite can make or break the success of retaining an employee

Everybody remembers his or her first day on a job. It begins with excitement and a little apprehension, but most of us can’t wait to get going.

What happens at the end of the first day, though? For people looking to hire skilled workers and make sure they are successful, answering that question is essential to being able to address our labor shortage issues.

Let’s face it, the construction industry has a history of giving rookies a tough time. Old pros send the new guy out for sky hooks or point out that half the nails he fetched have the heads on the wrong end, then send him back for more. Most of these pranks are kind of dumb, but, if you need more suggestions, a quick Google search will supply you with all the semi-hilarious pranks you could possibly need.

The trouble is that those pranks are little more than hazing, and they do absolutely nothing to ensure that the young worker will return on day two of the job he was excited to start. Let’s put that failure into perspective. You spent a lot of time looking for qualified workers, then you used company resources to ensure that the person you found would be a good fit, could do the work and had the right attitude. Finally, you sent him out to the job site, and there all your good work was undone because of old-school attitudes.

Pranking rookies is probably the worst of the first-day experiences. Even if your crews don’t do that, new workers often face taciturn employees who don’t talk to them, don’t ask them to join them for lunch or make sure that all the tasks the newbie does on the first day are crappy, dirty, nasty jobs.

The trouble is that those pranks are little more than hazing, and they do absolutely nothing to ensure that the young worker will return on day two of the job he was excited to start.

That’s no way to ensure their success and help build someone to long-term employment, even a career in the trades.

There is a better way.

Consider the onboarding process at John Deere, the agriculture equipment manufacturer headquartered in Moline, Ill. You can find details in in the book, “The Power of Moments,” by Chip and Dan Heath. The authors describe a first-day experience that ensures the new employee is excited about the job and feels incredibly welcome.

The day begins by having someone greet the new employee at the door and walking her to her desk, where a tall banner lets everyone know that she’s a new hire. Her computer background has a glamour shot of a piece of John Deere equipment and the phrase, “Welcome to the most important work you’ll ever do.” Her first email is a welcome from the CEO and includes a video message about the mission of the company. John Deere does all that on the first day as well as gives her a memento—a replica of the first plow made by Deere—and her welcome host takes her to lunch with other employees.

Most contractors can’t deliver that kind of experience, but we can all improve our first-day adventure for new employees. We want people to succeed because when they do, they improve our businesses. Employees who feel they’re doing important and satisfying work, who believe they’re welcomed and who can find personal connections with other employees are going to believe in our company and our mission. That begins on day one.

For an industry struggling with attracting qualified, skilled labor, making sure you get off on the right foot is essential to overcoming that challenge. Spend a little time thinking through what you want your next hire to encounter on his first day at your company. Make sure you communicate that to your team. At the end of the day, you want that employee to look back on the day with the same pride and excitement with which he began it.

Managing the Construction Workforce Using Tenets of Trauma-informed Care

My wife works with homeless families in a nonprofit that provides transitional housing, mentoring, and other support services. Many clients have experienced the worst kind of trauma, from childhood abuse to domestic violence as adults. A number are homeless because they are fleeing abusive situations. Because of that, figuring out ways to break through the barriers her clients put up so they can help themselves requires a deft touch and a careful approach.

Her nonprofit and other social services dealing with marginalized populations use a methodology that has evolved over the last couple of decades into a more formalized system now known as “trauma-informed care.” It begins simply with changing the question asked of people from “What is wrong with you?” to “What happened to you?”

“I’ve spent enough time on job sites, and seen enough anger and confrontation over simple issues that I’m convinced that people in our industry are more likely to have been traumatized than the general population, not less likely.”

I find this approach fascinating for two reasons. One is that it is actually the same communication strategy a practiced manager would use to get the most out of their employees. A bit on that in a moment.

The second reason this caught my attention is that I’m convinced that many of the people who end up on construction sites have been changed because of some trauma. The Center for Disease Control statistics show that one in four children has experienced some kind of abuse—physical, sexual, or emotional. Given this prevalence, it only makes sense that some percentage of our workers has been traumatized. I’ve spent enough time on job sites, and seen enough anger and confrontation over simple issues that I’m convinced that people in our industry are more likely to have been traumatized than the general population, not less likely.

Now, I don’t recommend supervisors begin treating workers with trauma-informed care methodology. That should be left to trained professionals.

I do, though, recommend that supervisors learn about the tenets of trauma-informed care, because they are the same tenets of good personnel management. The acronym experts use is STCCE, and the cool kids pronounce it “sticky.” It stands for safety, trust, collaboration, choice and empowerment. Supervisors need to

  • Create a Safe environment that is predictable and respectful.
  • Earn Trust over time by themselves being trustworthy.
  • Establish Collaborative environments where employees feel that their judgement and ideas are valued and important to the success of the operation.
  • Encourage Choice. You want workers who can think for itself and take initiative.
  • Empower staff to take control of their daily lives and be responsible for those decisions.

I especially like that safety comes first in this list. In the construction industry, it is our highest priority. Every worker should make it back to his or her family, and we can only do that by creating safe environments.

That also extends beyond just physical safety. Nobody should dread coming to work because they fear they’re going to be hazed or yelled at. Nobody should quit after just one day because the job site is too unfriendly, too threatening.

Although it isn’t nearly as common now as days past, too often the culture in our industry is one of near bullying. Supervisors yell at employees and belittle them. Other, more experienced workers, haze young workers because they themselves were hazed. Usually, that’s seemingly harmless. Asking a newbie to get a skyhook or sending him back down three stories because half the nails he brought up have their heads on the wrong end sound like fun pranks. What it really does, though, is reinforce that the work environment isn’t necessarily safe. And it certainly doesn’t build trust, encourage choice, or empower.

Many of your employees may have experienced trauma. A hard worker who belittles others may have been emotionally abused when growing up. An office staff member may be experiencing domestic violence that she hides from everyone. No matter what the issues individuals are struggling with, all of your staff would benefit from a culture that is sticky. And remember, the question is “What happened to you?” not “What’s wrong with you?”

Elevating Excellence: The Significance of AC-478 Accreditation for Metal Building Assemblers

In the world of construction, metal buildings are becoming increasingly popular due to their durability, cost-effectiveness, and versatility. These structures are not just a modern architectural choice but also a symbol of innovation in the construction industry. However, ensuring the safety, quality, and integrity of metal buildings requires a skilled workforce. This is where AC-478 accreditation for metal building assemblers comes into play, signifying a commitment to excellence that benefits both builders and clients alike.

What is AC-478 Accreditation?

AC-478, or the Accreditation Criteria for Metal Building Assemblers, is a rigorous certification program administered by the Metal Building Contractors and Erectors Association (MBCEA). It is designed to establish and maintain a high level of proficiency and professionalism among metal building assemblers. The accreditation process evaluates an assembler’s knowledge, skills, and commitment to industry standards, ensuring that they can competently handle the complexities of metal building construction.

The Importance of AC-478 Accreditation

  1. Quality Assurance: AC-478 accreditation ensures that metal building assemblers adhere to industry best practices and safety standards. It helps guarantee the quality of work, reducing the risk of structural issues or safety concerns down the road.
  2. Safety First: Safety is paramount in construction. Accredited assemblers are well-trained in safety protocols and are more likely to create a secure work environment. This not only protects the workers but also minimizes risks for clients and the public.
  3. Meeting Building Codes: Compliance with local building codes is crucial for any construction project. AC-478 accreditation ensures that assemblers are well-versed in these regulations, reducing the chances of costly delays or modifications.
  4. Client Confidence: When hiring a metal building assembler, clients want assurance that their project is in capable hands. AC-478 accreditation serves as a mark of trust, giving clients confidence in the skills and expertise of the assembler.
  5. Efficiency and Cost Savings: Accredited assemblers are likely to work more efficiently, potentially reducing project timelines and costs. They are also less likely to make errors that could lead to costly rework.

The Process of AC-478 Accreditation

To achieve AC-478 accreditation, metal building assemblers must undergo a thorough evaluation. This evaluation includes:

  • Demonstrating experience in metal building assembly.
  • Providing evidence of training and education in the field.
  • Passing written exams that test knowledge of industry standards.
  • Completing practical exams to showcase proficiency in assembling metal buildings.
  • Agreeing to adhere to a strict code of ethics and conduct.

Once accredited, assemblers are expected to stay updated with industry developments and maintain their commitment to safety and quality.

Choosing an AC-478 Accredited Assembler

For clients planning to have a metal building constructed, selecting an AC-478 accredited assembler is a wise decision. It not only ensures a higher level of quality and safety but also provides peace of mind throughout the construction process.

For metal building assemblers, pursuing AC-478 accreditation is a testament to their dedication to their craft and their clients. It sets them apart in a competitive industry and opens up opportunities for growth and success.

AC-478 accreditation for metal building assemblers is not just a certification; it’s a commitment to excellence. It safeguards the integrity of metal building projects, upholds safety standards, and instills confidence in clients. As the construction industry continues to evolve, AC-478 accreditation remains a vital step toward elevating the standards of metal building assembly, ensuring that the future of construction is safe, efficient, and built to last.

It’s Hot on the Job Site

This summer there have been lethal heat waves across the country, turning some cities into blast furnaces. Phoenix hit 119 °F. Houston 109 °F. Can you imagine working on a roof on those days?

For the men and the women on the job site, the summer heat can be a thornier issue to deal with than winter cold. Unfortunately, we’re not always as careful in the summer as in winter. Yes, the sweat is dripping into your eyes and, yes, the back of your neck is feeling the roasting rays of the sun, but your body is less adept at sending signals to your brain that you’re in trouble.

As wet-bulb temperatures approach 95 °F, even the healthiest people, relaxing in the shade without heavy clothing and with an endless supply of water, cannot prevent themselves from overheating. Even at lower wet-bulb temperatures, like 79 °F, those with pre-existing health conditions … as well as those performing strenuous outdoor labor …, are at a high risk.

Radley Horton, Research Professor, Columbia University

Part of the reason is we get discombobulated and the heat oppression can be cumulative. Last summer, I rebuilt our deck, and on a couple of sweltering days in the sun, I wasn’t thinking with my usual sharpness. While filling the car at the gas station after the second afternoon of working in the sun, I forgot to remove the hose from the tank and drove away, pulling the hose from pump. Fortunately, there’s a breakaway spot on the hose, so no damage was done and no gas was spilled, but the accident was purely because I wasn’t able to concentrate on a task that I’ve done my whole life.

Such a lapse of concentration on a job site can have much more catastrophic results. During these hot days, regular hydration breaks in the shade are essential for workers to be safe and to function fully.

But even the shade might not be safe in some places. Have your heard of wet-bulb temperatures? It’s measured by a thermometer covered with a wet cloth and is a measurement of heat and humidity. At 100% humidity, the wet-bulb temperature is equal to the dry-bulb temperature.

In a wet-bulb temperature of 95 °F or higher, your body essentially runs a fever with no way to cool it down—even in the shade. The high humidity prevents the sweat from evaporating from your skin, which keeps your body cool. An hour of working on a wet-bulb temperature day can be life threatening.

Fortunately, such days are not common, but here’s the danger. According to Radley Horton, a Columbia University professor who co-authored a National Oceanic & Atmospheric Administration (NOAA) 2020 study on wet-bulb temperatures, “Wet-bulb temperatures above 86°F are rare in the U.S. As wet-bulb temperatures approach 95 °F, even the healthiest people, relaxing in the shade without heavy clothing and with an endless supply of water, cannot prevent themselves from overheating. Even at lower wet-bulb temperatures, like 79 °F, those with pre-existing health conditions (like respiratory, cardiovascular and renal disease), the elderly, as well as those performing strenuous outdoor labor and athletic activities, are at a high risk.”

They’re not common, but they are becoming more common, especially in the Southeastern United States along the Gulf Coast. There are a whole lot of construction workers between East Texas and the Florida Panhandle. They should know the dangers of high heat and high humidity. And in 50 years, according to NOAA, several states in the Midwest are likely to see significant increases in wet-bulb temperature days.

Want more information? Check out the NOAA study, “The Emergence of Heat and Humidity Too Severe For Human Tolerance,” at research.noaa.gov.

Construction’s Productivity Decline

Over the last decade there have been several studies on productivity in the construction industry. Almost without fail, the research has shown that the industry has grown less productive since the 1970s.

Now the issue has hit a broader audience. In a Feb. 5 column for the New York Times, Ezra Klein writes about a recent study by two economists from the University of Chicago Booth School of Business. Austen Goolsbee (who was recently appointed chair of the Chicago Federal Reserve) and Chad Syverson have produced a paper titled, “The Strange and Awful Path of Productivity in the U.S. Construction Sector.”

It’s a provocative title, and it attempts to address some of the concerns about previous studies, such as whether we are mismeasuring the labor or material inputs, and how much we build with them. In other words, are we correctly measuring the amount of steel that goes into a building, and are we correctly measuring how much building that steel constructs?

There are a lot of variables in this study, but the biggest issue I see (and I am not an economist, so please take my observations advisedly) is that they we use the wrong metric to measure productivity. For Goolsbee and Syverson, the measure boils down to square footage. Are we building more with less?

I see several problems with this metric:

  1. Quality improvements. Today’s buildings and homes are more sophisticated, giving each square foot greater value. Solar panels, ground-source heat pumps, high-efficiency HVAC, home-run water systems, improved insulation and vapor barriers are all an increased investment that pays off over time.
  2. Increased complication of construction. CADD and BIM programs give architects the ability to create incredibly sophisticated designs that couldn’t be built 50 years ago. Soaring interior spaces and complicated exterior façades don’t add to square footage but do add to the value of the building and are part of a worker’s productivity.
  3. Growth of the renovation market. Renovation of existing structures is more costly per square foot than construction of new structures. Last year, architectural billings for renovation exceeded new construction for the first time. As our building and housing stock ages, we are spending more to repurpose, repair and improve it instead of building new. That would drive productivity down.
  4. Value of reduced maintenance and repair. With improvement in building materials and construction techniques, contemporary structures need less maintenance and repair than older buildings. So, the productivity of a worker reduces the requirements for more work. Shouldn’t productivity be measured over the life of the building and not just its construction?
  5. Labor cost of increased safety. Improved safety protocols tend to slow workers. For example, fall arrest systems, while sophisticated, reduce productivity. They take time to set up and slow the pace of construction. But the number of workers injured or killed on the job site has plummeted over the years. Shouldn’t productivity measurements include the impact on society of workers going off line due to injury or death?
  6. Price-based competition. The construction industry has always been a bid-based business where the winner often offers the lowest price. That incentivizes companies to cut corners, which requires more oversight. There is a disincentive in the industry to be more productive. 
  7. Skilled labor shortage. For the last 30 years, there has been a shortage of skilled labor. Boomers aged out of the 18- to 32-year-old cohort that formed the backbone of the labor supply, and Gen-Xers were unable to fill those spots, which were then occupied by immigrant labor. Simultaneously, society decided every kid needed to go to college–even the ones who shouldn’t go to college. Most economists I know say recent industry growth was hampered by a lack of available labor. 
  8. Slow adoption of building technology. Even though building materials and techniques have improved over the last few decades, the industry is notoriously slow to adopt new building technologies. The reason is simple: the liability is too high. If an architect specifies a new product that then fails, the entire building needs to be retrofitted and the lawyers will line up in droves. It’s hard to improve efficiency without improved technology.

There is enough doubt on the measurement of productivity to give us pause about drawing conclusions. Still, there is a huge opportunity to improve productivity in the industry. Modular construction is one way, and increased job-site technology is another avenue.

What the Heck is a Subcontractor?

I am not a big fan of the word “subcontractor.” Oh, I admire the talents and skills of companies that do subcontracted work, but I don’t think the word does them justice. It’s a great description of a legal relationship. It says to the world that a company does work that is supporting a general contract.

The word “subcontractor” doesn’t come close to giving specialized trade contractors their due credit and even minimizes their importance.

You know what a better term is and one I wish the industry would adopt more completely? “Trade contractor.” Trade contractors ply a specific trade, and they are experts at what they do. Trade contractors are metal building erectors, plumbers, foundation contractors, electricians, glazing contractors, sheet metal contractors, excavators, mechanical contractors, ceiling contractors, etc. These are the people who have developed the essential skills necessary to complete the very sophisticated and complicated tasks that building construction requires.

“Subcontractor” does not come close to giving them their due credit and even minimizes their importance to a project. In a way, the term says they are less necessary.

Why is it important to get these terms correct? Words matter, of course, and what we call people and things and services is important to show what we think about them. Many general contractors in commercial and residential construction are developing stronger relationships with their trade contractors.

The history in the construction industry is that the trade contractor is selected based almost solely on price, but as building design has become more sophisticated, the downside to that process has become readily apparent. As a friend of mine likes to say, “If you take the lowest bid, you should probably hire a lawyer at the same time.”

In the low-bid pool, swim the fly-by-night operators and companies who are more ambitious than their skills allow.

Among the better general contractors is the realization that stronger working relationships with trade contractors improves their own abilities and can create more opportunities and business growth. Good GCs leverage those relationships to get better projects and showcase themselves as a company that can handle complicated problems smoothly.

Where do you begin when you want to establish better relationships with your trade contractor partners? As with most things in relationships—personal and business—it’s always a good idea to learn what your trade contractors want. Survey them to find out what their needs are, and how you can improve the flow of projects. Get together with them regularly to learn how your own business can improve. Work with them to help smooth the operations of their business. In short, establish a working partnership that tightens the relationship between your two companies.

The benefit is that you’ll learn how to work together better, and when a problem does arise (and in the construction industry, problems always come up) you’ll have the foundation necessary to solve the issue without damaging your overall relationship.

The best contractors we talk to have been in long-term relationships with their trade contractors. They work with the same teams on job after job after job, and they’ve come to know each other’s moves in the same way a quality basketball team does. They know how to hand off that job packet in the same way a point guard knows how a shooting guard likes to receive a pass: on the bounce, on the move, feet planted, etc. He offers it up in the way that the shooter is mostly likely to make the shot. He feeds into his partner’s success.

The term “subcontractor” doesn’t capture that kind of relationship.

If I haven’t convinced you yet that changing the term to “trade contractor” is better, let me try this argument. During the shortage of skilled labor we’re facing, everyone agrees that we need to attract more young people to the trades. The “trades.” Not the “subs.” Let’s give these skill companies the respect they deserve and stop calling them “subs.”

The Construction Industry is Built on Trust

Who do you trust? Who trusts you? The entire construction industry is built on these two simple questions. Without trust, without the belief that people will do what they say they will and can do, the whole industry collapses. We trust the subcontractor will show up on time. We trust the GC can execute the design. We trust the architect has worked through all the pesky design details. And we trust the engineer has anticipated all of the loads and done the calculations correctly.

The most honest person in the world who can’t manage a crew is not trustworthy in the construction world.

We trust all of these people and their talents, and without that trust the entire industry would collapse. The result of that reliance on trust is two-fold. First, we tend to work with the same people over and over again because we know what we’re going to get. We’re familiar with their capabilities and understand their constraints, which we can work around. The upside of that is the more trustworthy you are, the broader your reach and the greater the likelihood you can expand your business.

We often talk of trust in terms of truth-telling honesty, reliability and other personal characteristics of what we would consider a “good” person. But trusting someone in a business relationship also means you trust their ability to manage people and resources in a way that is efficient and predictable. The most honest person in the world who can’t manage a crew is not trustworthy in the construction world.

The second result of an industry entirely built on trust is that it is slow to change. If you are uncertain about a product, such as a new rainscreen fastening system, or a service, such as an automated final-mile distribution model, you’re going to be slow to adopt it. You’ll wait till it’s proven and has shown its trustworthiness.

In our industry, we like our well-worn paths because we’re confident in our success and we can build a business based on that success. Experimental ideas bring in too much potential for chaos, and that is the death of any company in our industry.

There is, though, a chaos agent in our midst that undermines all the trust we build with our business relationships and they with us. Price. The industry’s reliance on low-price bidding undermines the very foundation of the industry itself. It strikes at the heart of trust because we are pushed to accept the lowest (or a lower) price even when we don’t trust the outcome or the people involved.

I would like to see research on this, but I would be willing to bet that 99.9% of conflict in construction comes about because we trusted someone to do something but because we had to get a lower price they were actually incapable of delivering on what we trusted they would do.

There’s a lot to unpack with that idea, including improved communications helping to build trust, but the idea is that price and trust work in opposition to each other.

Think of trust as value. With trust, we build value. Our clients get more for their money because we are trustworthy. But price lies in opposition to value and if our clients want a lower price, that means they are also asking for lower value. And what they’re really telling you is they don’t completely trust you. You have not convinced them of the value of your service or product.

The only way to do that is to work over time to build up trust so they will begin to value you and move away from undermining the process with a focus on price. Companies that can demonstrate their value earn trust and can stop competing on price.

Doing vs. Knowing How

There is a great scene in the James Michener novel “Chesapeake” that serves as a model for the metal construction industry. A Chesapeake Bay waterman piloting a skipjack comes across some day trippers out of Annapolis who have run their sailboat aground. He offers to get them back on their way, but they’re dubious that his little sloop will be able to get their large sailboat unstuck.

Doctors get paid for knowing how, carpenters get paid for doing.

The captain offers to do it for $50, and the day trippers finally agree. He then directs a young crew member to take one end of a line, swim to the other boat and tie it to the very top of the mast. The agile crew member completes the task quickly and the captain secures the other end of the line to the skipjack. Then, he sails out perpendicular to the sailboat, pulling the mast down toward the water. Just as the gunwale is about to touch water, the boat pops free and the task is completed. Simple.

In fact, the day trippers feel it was too simple and are reluctant to cough up the $50. The captain replied with words that every person in our industry should memorize. “It’s not in the doin’. It’s in the knowin’ how.” The day trippers paid up.

All of our construction pricing is based on the amount of time it takes to complete a project. We project our costs for installation almost entirely on how long it takes to erect the steel, install the roofing, pour the concrete, hang and tape the drywall. Every project is broken down into discreet tasks that have an effort-related element to it. Additional services, such as engineering, are based on time involved in the work, so even the obviously “knowin’ how” part of the work is priced on the “doin.”

In short, we get paid for doing the work, not for knowing how to do the work.

Another quick anecdote. When I was a carpenter back in the day, we often joked that after eight or 10 years we’d know everything we needed to know about carpentry and could truly call ourselves carpenters. But, if we spent the same amount of time in college and medical school, we would be able to call ourselves “doctors.” Doctors get paid for knowing how, carpenters get paid for doing. Granted, there is a bit of difference in technicality and responsibility between a doctor and a carpenter, but the main point is to show how much we undervalue trades people.

So, how do you get paid for knowing how? For most in the construction industry it’s by finding a better, more efficient way of doing the task. You discover a shortcut and you can still charge the rate at the traditional time. That only holds, though, for as long is takes the industry to catch up with your best practice.

Another way is through the design-build process. By getting involved in the design and engineering stage of a project, contractors and trades can see their knowledge get rewarded. It’s essential to be able to articulate how that involvement betters the entire construction process, and contractors should be adept at saying what they bring to the table.

Can you do that? Can you explain in a clear way the value of the knowledge you bring so that you can be paid for it? If not, you’ll only ever get paid for your effort, not your brain.