Construction Company Capacity Assessment
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- Florence Tate
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1 Business/Firm Name: Vendor NCDOT Number: Contact Address: Construction Company Capacity Assessment Name/Title of Person Taking Assessment: Phone Contact Information: Contact Information: List Current NCDOT Certifications Expiration Date List Current Other Certifications For the Previous Accounting Year: Our previous accounting year started (date) and ends (date) Percentage of total (NCDOT + Other) work performed on NCDOT projects: Total (NCDOT + Other) dollar amount of projects BID: Total (NCDOT + Other) dollar amount of contracts AWARDED: Percentage of our work performed under purchase order: Percentage of our work performed under Formal Contract: Percentage of our subcontractor's work performed under purchase order: Percentage of our subcontractor's work performed under formal contract: Number of General Contractors we are PREQUALIFIED to bid for: Number of General Contractors we typically BID for: Number of General Contractors we WORKED for: Average number of days to receive payment after Pay App. is submitted: Number of OSHA Recordable Events: Number of Worker's Compensation Cases: Number of Hourly Employees: Number of Salaried Employees: Total Revenue: Total Direct Construction costs: Total Gross Profits: Total Company Overhead: Total Net Profits: For this survey, short term assets/liabilities are considered current, long term assets/liabilities are considered fixed. The total is considered the sum of both short term and long term assets/liabilities. Total Assets: Current Portion of Assets: Total Liabilities: Current Portion of Liabilities: Total Owners Equity : For this Year: Our current EMR (Experience Modification Rate) is: Number of vehicles in company owned fleet: Number of drivers authorized to operate company vehicles: Our main indicator of productivity is (i.e., "CY/Man Hour"): Name your estimating software: Name your accounting software: Last time our employee manual was updated: Copyright NC State University 2014
2 1 NCDOT Construction Performance Goals NCDOT Our company understands the NCDOT prequalification processes to bid and perform work with the NCDOT. 2 Our company is prequalified to bid and perform work with the NCDOT. Our company knows how to comfortably navigate the NCDOT website for work opportunities and requirements. 4 Our company regularly bids work for the NCDOT. 5 Our company regularly performs work with the NCDOT Our company is familiar with the submittals, and record keeping processes required to perform work for the NCDOT. We understand how contractual changes (and work directives) are managed on NCDOT projects. Our management and field staff are familiar with the quality standards affecting material and construction methods used in NCDOT construction projects. Our management and field staff understand payment units, methods, and requirements on NCDOT construction projects. Our management and field staff know dispute resolution methods, and are capable of developing dispute resolution documentation on NCDOT construction projects. General Contracting (GC) Our company understands the GC prequalification processes to bid and perform work with a NCDOT prime GC. Our company is already prequalified to bid and perform work with at least 2 reputable general contractors (GCs) that regularly bid and perform NCDOT construction projects. 1 Our company regularly bids work with reputable GCs on NCDOT construction projects. 14 Our company regularly performs work with reputable GCs on NCDOT construction projects We understand the bid selection criteria and process employed by GCs on NCDOT construction projects. We understand the risk factors considered by a GC when they select a subcontractor, and how our company may become more attractive (i.e., less risky) for a NCDOT construction project. We understand and are familiar with project explicit, or implied, general conditions, and how these conditions may affect our price and profitability on projects. Our employees are trained and have made GC work zone safety policies standard practice on NCDOT construction projects. Our company understands the pay application process utilized by GCs on NCDOT construction projects. Our company understands the change order process utilized each GCs on NCDOT construction projects. Our company understands the claims and dispute resolution utilized by GCs on NCDOT construction projects.
3 Business Operations Goals Safety We have in place a safety program that clearly identifies roles and responsibilities for all employees in the company. We provide comprehensive safety training to all new employees before the employee starts work. Every year, as a result of our work on safety, we produce records of all Job Site Training, Job Site Inspections, and Job Site Safety Huddles. We have in place a Fleet Safety program for vehicles/equipment and drivers/operators that includes documented inspections, training, and drivers license record checks. We understand the difference between OSHA "recordable" and OSHA "reportable" incidents. We understand the difference between OSHA "recordable" and Worker's Compensation "compensable" injuries and illnesses. 7 We maintain an updated log of OSHA 00, 00A and 01 records We investigate and maintain supporting documentation of all workplace incidents, accidents, injuries, illnesses, and near misses. We have complied with training to employees related to labeling hazardous chemicals with the Globally Harmonized System (GHS). We have a capacity to develop, regularly update, and implement Job Site Hazard Analysis (JSHA) on each job site. Bidding and Estimating We select projects based on factors other than price (i.e., client background, risk, and complexity) in addition to potential profit. Our company has personnel on staff with the capacity to read blueprints, take off quantities, interpret specifications, and estimate costs. We have a good understanding of our own production rates for key items in our typical scope of work. 14 We periodically print and review budgeted direct costs vs. actual direct costs records. 15 We periodically determine the actual Project Overhead, Company Overhead, and Profit levels for our company. 16 We include a cost contingency in all our estimates as a separate line item. 17 Our company utilizes computer software to perform estimates. 18 Our estimating computer software is integrated with our accounting software For each bid we prepare and submit to the client our own written proposal identifying the scope of work, the cost, the work schedule, and any scope exclusions. Our company has solid relationships with multiple equipment and material vendors, and receives competitive pricing for large orders. 21 We periodically perform bid result analysis to include known bids by our competitors.
4 Business Operations Goals Operations All cost estimates have a work schedule which is consistent with the labor, equipment, and materials planned for the project. During the estimating process, we develop a project turnover folder containing: contract, scope, drawings, specs, submittals, estimate, schedule, schedule of values. As soon as the project is awarded to our company, we have a formal project turnover meeting to transfer all information to the designated project superintendent. All of our project construction supervisors/superintendents have a complete and updated knowledge of the project contract, scope, drawings, specs, estimate, schedule. All of our project construction supervisors/superintendents can quickly identify change orders and are capable of initiating a change order process. We capture project information in a daily report with a high degree of accuracy and reliability. Our company has the capability to capture actual work productivity and job progress as part of the daily report. Our field crews regularly perform a daily "huddle" to define tasks planned and production goals, and to assess and resolve hazards. Our field and project supervisors meet on a weekly basis to evaluate the status of the job and to plan upcoming work. Our company has an internal process to "punch out" items and expedite the close out and demobilization processes. Our company has an internal process to produce complete and timely pay applications with minimum error. Our company has an internal process to produce complete and timely change orders with minimum error. Our company has an internal process to produce complete and timely lien waivers and certificates of insurance from subcontractors and vendors with minimum error. Our company regularly performs "post mortem" or "close out" project reviews with key members of the project construction team.
5 Insurance and Risk Goals General Insurance We know who our insurance policy carriers are, and we maintain regular contact with their agents. We are aware of the insurance policy renewal dates and have a system in place to track these dates. We clearly understand which risk exposures are covered under each of our insurance policies. (Gen Liability, Worker's Comp, Auto, Umbrella, Property) We clearly understand which risk exposures are not covered (exempt) under each of our insurance policies. We clearly understand how to perform a claim under each of our insurance policies. (Gen Liability, Workers Comp, Auto, Umbrella, Property) We understand why our GC clients want our insurance coverage limits to be at least equal to their limits. 7 We require certificates of insurance from ALL vendors and subcontractors. 8 We know which one of our insurance policies/coverage is affected by field laborer payroll. 9 We know which one of our insurance policies/coverage is affected by subcontractor billings to us. 10 We know how an umbrella policy works. 11 We know that our umbrella policy includes "self insured retention". 12 We know that our builders risk policy is on a "per project basis". 1 We understand the "Affordable Care Act" and our responsibilities to our employees regarding health insurance. Bonding 14 Our company is bondable. 15 We clearly understand the importance of being bondable and bonding requirements. 16 We know what our bonding capacity might be at any given time. 17 Our bonding and insurance carriers are separate entities. 18 We know the difference between "compiled", "reviewed", "audited" financial statements. 19 We can produce reliable internal financial statements for a bonding company if necessary.
6 20 Insurance and Risk Goals Subcontractors We review our subcontractor's insurance policies and maintain a system to track insurance policy expiration dates. 21 We utilize a Purchase Order agreement with our subcontractors. 22 We utilize an industry standardized Subcontract Agreement with all subcontractors Our PO's and/or Subcontract Agreements have been reviewed by appropriate legal counsel and reviewed on an annual basis. Our subcontractors do not begin work without an executed PO or Subcontract, and valid Insurance Certificate. Worker's Compensation 25 We understand the Worker's Compensation law and its processes and requirements We have developed a clear classification of each employee's risk/exposure for proper assignment of Worker's Compensation premium rates. We understand what a Worker's Compensation "ghost policy" is, and the potential implications affecting our company. 28 We have in place a pre employment physical examination requirement. 29 We have in place a pre employment drug test requirement. 0 We have in place a Worker's Compensation claims management process. 1 We have in place a reliable accident investigation process. 2 We have in place a contract with a medical provider experienced in Worker's Compensation. We have in place a post accident drug test requirement. 4 We have in place a clear return to work policy. 5 We know how our Experience Modification Rate (EMR) is calculated. 6 We know how our EMR can be affected by open Worker's Compensation claims.
7 Structure 1 We have a designated employee to handle human resources (HR) matters. 2 Our HR activities are aligned with the company's strategic business plan. 4 5 Policies and Postings We have a current Employee Handbook or Policies and Procedures Manual that provides guidance to employees and details expectations of employees. Our HR policies are kept current, employees are provided a copy, and there is a formal process for developing or revising policies as needed. Our company understands Federal, State, and local laws pertaining to the posting of workplace notices. Our employees, supervisors, and managers are trained on anti discrimination and antiharassment practices. 6 7 If a Federal contractor, we have a current Affirmative Action Plan in place. Recruitment We recruit proactively from a planning mode (i.e. projected workforce plan) as well as 8 reactively for immediate replacement and new job openings. 9 Our hiring decision makers are skilled in objective selection practices. 10 We perform background checks, and we understand requirements of the Fair Credit Reporting Act. 11 We require candidates who are offered a job to complete an employment application. 12 We provide offer letters to all candidates who are offered a job Human Resources Goals Onboarding. We complete an I 9 form for every employee (regular, part time, and temporary) within business days of hire, the form is on file for every active employee, and the form is on file for employees who left within the last years after hire date or 1 year after termination date (whichever is longer). For companies with 25 or more employees, our company is enrolled in E Verify and eligibility to work in the US is verified for all new hires. 15 Our employees are provided new hire orientation and position specific training. Employee Information/Required Documentation We maintain a personnel file for each employee and it contains the employment application, resume (if applicable), offer letter, handbook and policy authorization form, personnel change forms, commendations, disciplinary actions, and performance evaluations. Our employee's private health information is maintained separately from the Personnel file; this may include medical information, physician's diagnosis, physician's notes about medical condition, self declaration protected class information, health insurance forms, and Worker's Compensation claims. 18 We maintain a system to track work hours of non exempt employees. 19 Our employees have job descriptions and descriptions are updated regularly. Compensation
8 Human Resources Goals 20 Our company pays competitive wages to attract candidates We maintain fair differentials in pay for current employees when compared with the pay of new hires in similar roles and experience levels. Our compensation system assures that employees are paid in a fair manner relative to their responsibilities, performance, and overall contribution. Performance Management, Termination, and Separation 2 We maintain an effective system for regular performance feedback. 24 Our separation procedures (in regard to wages, vacation pay, company property, COBRA, etc.) comply with relevant State and Federal laws. 25 Our company conducts exit interviews with separated employees. Employee Benefits 26 We offer employee benefits as part of our recruiting strategy. 27 We believe employee benefits are a key retention tool in our industry and organization. 28 We offer a competitive contribution strategy towards our employee benefits program. 29 We have surveyed our workforce regarding their employee benefits needs, likes, and dislikes. Wellness 0 We are strong proponents of promoting wellness in the workplace. 1 We utilize the wellness programs that our current insurance company offers at no additional cost. 2 We believe that healthy employees are more productive employees. We believe a healthy workforce yields less costly insurance premiums.
9 Business Strategy Goals Leadership 1 We know and have recorded our organization s mission and core values. 2 We know and have recorded our vision, including long term and short term goals. Our employees understand our roles and have accountability for delivering on the longterm and short term goals. 4 We set the right course for future success. 5 We always seek new ideas and innovation. Strategy 6 We have a strategic planning session every year where future goals are set. 7 We have a robust and comprehensive strategic marketing plan. 8 We understand our brand and what differentiates us in the market place. We analyze market trends and have a good understanding of the industry and its 9 competitors. 10 We have a very accurate and comprehensive budget forecasting process. Structure 11 Our organizational structure and governance system is clearly articulated. 12 We invest in retaining and developing our workforce for maximum performance. 1 We know our training requirements. 14 We provide a motivational environment that rewards high performers and removes poor performers. 15 We believe our company is a great place to work and will be successful in the future. Industry 16 We have adopted modern business systems to meet business objectives such as reducing cost and improving quality. (ie: Six Sigma, Lean, project management/accounting integration) 17 We benchmark performance to the industry s performance standards. 18 We know our competitive position in the market place. 19 We know who our most important customers are and routinely ask for performance based feedback. 20 We have a clear understanding of the role our vendors and suppliers have in our company. Measurement 21 We track key performance indicators on a regular basis. 22 Processes and systems are evaluated regularly with the purpose of continuous improvement. 2 Our company s performance is well measured and clearly communicated Individual and/or team goals are demanding, but attainable, and are aligned with the company goals. We review these goals regularly. Performance improvement plans are in place to assist employees who are not meeting preestablished goals.
10 Financial and Accounting Goals Corporate Structure and Philosophy 1 We make accounting an integral part of managing our business. We update our corporate records (stock books, minutes, state filings) annually and review 2 for accuracy. We complete tax returns in accordance with Federal and State income tax regulations in a timely manner each year. Our financial statements are completed in accordance with Generally Accepted Accounting 4 Principles. 5 Our accounting staff and estimating staff communicate effectively. 6 Our accounting staff and project managers communicate effectively. 7 Our accounting staff and company officers communicate effectively. We make decisions considering all potential benefits and costs, the lowest price is not 8 always the best option. We place a high degree of importance on obtaining the services of a construction intensive 9 CPA to assist with our annual reporting. 10 We seek opportunities for our staff to obtain continuing education. 11 We continually update our bonding company of our financial position and progress. 12 We maintain a distinct delineation between employer/employee personal funds and company funds. Accounting System/Internal Reporting 1 Our company officers have final approval on all estimates and/or bid submittals. 14 Our company officers receive a monthly close out package and review for inaccuracies. 15 Our company officers receive unopened monthly bank statements and review for inaccuracies. 16 We complete monthly close out procedures in a timely manner. The close out procedures include a reconciliation of job cost ledgers, accounts receivable ledgers, accounts payable 17 Our Work In Progress (WIP) schedule includes: reconciled job costs, percent complete, completion dates. This information is carefully reviewed by management each month. 18 Our Work in Progress (WIP) schedule includes: change orders and accurate cost to complete estimates 19 We complete some form of due diligence (investigate) on owners and subcontractors prior to entering a contract. 20 We review indirect job costs along with administrative rates monthly and/or annually. 21 We charge equipment usage to specific jobs based on usage logs or allocation percentage. Payroll Processing 22 We place a high level of importance on assuring all employees are properly classified between employees and independent contractors. 2 We properly account for all truck allowances. 24 We submit payroll taxes and all other payroll related withholdings in a timely manner. 25 We pay Worker's Compensation premiums based on proper employee classifications. 26 We strictly prohibit compensation in the form of cash.
11 Business Entity Our company selected its current form of business entity (sole proprietor, partnership, 1 corporation, LLC) based on an analysis of the legal and/or financial benefits to the selected Our company has a system in place for preserving the benefits of its selected form of 2 business entity. Our company has checks in place to avoid comingling of personal and corporate funds. Our company is aware of, and has applied for, certification as a minority owned business, a 4 woman owned business, a historically underutilized business, a small business, and/or any Our company would feel comfortable with its business practices if a dispute regarding them 5 went to court. Licensure and Qualifications 6 We have a system in place for keeping our licenses current. We are vigilant about avoiding activities that could violate the licensing requirements for 7 our field of work. Our company is familiar with the requirements for obtaining prequalification to perform 8 public construction projects. Construction Law and Contracts 9 We are familiar with lien and bond laws for construction projects We have personnel on staff who are able to understand and interpret construction contracts, plans, and specifications. We have personnel on staff who are able to negotiate the provisions of construction contracts. Our company is familiar with Federal an State laws relating to public policies for construction contracts. 1 Our company has updated its contract documents in the past three years. Our company would feel comfortable with its contract documents if a dispute regarding 14 them went to court. Systems for Handling Legal Issues 15 We have a system in place for handling collections of overdue accounts receivable. 16 We have a system in place for tracking and documenting project claims. 17 We have a system in place to ensure we comply with Federal and State wage and hour laws. 18 We have a system in place to ensure we comply with unemployment insurance laws Legal Goals We have a system in place to ensure we comply with the requirements of benefits laws, including ERISA and the Affordable Care Act. Our company is familiar with, and complies with, prevailing wage laws when applicable to its projects. Our company has a system in place to ensure it complies with Federal and State OSHA and workplace safety laws. Utilization of Lawyers Our company has a working relationship with a lawyer or law firm to assist with corporate issues. Our company has a working relationship with a lawyer or law firm it can rely upon to assist with construction issues. Our company has a relationship with a lawyer or law firm it can rely upon to assist with collections. Our company has a relationship with a lawyer or law firm it can rely upon to assist with labor and employment issues.
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