MOUNTAINLANDS AREA PLAN ROOMS

Since 1990, now over 700 members strong

Dear Editor,

Thank you for the opportunity to present my views on the construction industry. For those of you who read this article last year, or visit one of our plan room offices, this will sound repetitive. Most who know me get the networking lecture, and are encouraged to join the several Construction Trade Associations available in the state. People do business with people. Especially true when buyers are selective, or work is scarce. Service is still your best attribute, buyers need problem solvers.

Our research this year which relied on the Engineering community more so than our architects, show there is still 92% of the volume of work we saw this year for permitting and construction in 2002. We are tracking about 250 projects worth 2.8 billion. This figure was 241 last year. Overall our Architects have an average backlog of 4-5 months, also down slightly from 2001. Again it is the size of the projects, not the dollars that is in question. The big jump is in the 1-5 million $ projects about 150 vs. the 100 of this year. The small projects appear to have dried up temporarily, yet the 10, 25 and 50 million jobs are out there. They just do not satisfy the many companies that exist now.

The real difference is who will be winning that work. The easy work that was available for all that wanted it over the last 10 years is gone. Now the winners will be those with successful track records and the rolodex full of contacts. Bid procedures and professionalism will be key factors in winning and negotiating bids.  With an average cycle of less than two weeks to  hear about then produce a bid on this work, networking helps get this information timely. Quick and easy access to plans is what we offer at the Mountainlands Area Plan Rooms, personal service, availability and multiple copies of documents are what make us unique.

The ability to bid a diverse range of projects or geography will be as helpful as being absolutely productive as possible. Check for licensing requirements prior to bidding other states, then stay within your expertise. The best tools for bidding and construction, people and management will separate the masses soon. Qualified labor, and available workforce will be a national issue that is true here yesterday, today and tomorrow. Your local Association should be working on training issues for you.

As always our biggest complaint we hear is problems getting paid. Too many suppliers and subcontractors are stuck with contract clauses that can legally delay progress payment for months, without recourse for the lack of owner funding. The new prompt pay act being debated now is a great step forward for subcontractors rights. But ultimately I believe the owners should have to prove funding, so the General Contractors can be assured their financial risk is minimized. Let banks and owners finance and contractors build, then get paid monthly.

Besides owning the Mountainlands Area Plan Room LSC, Orem, Ogden, we headquarter the Western REgion of the American Society of Professional Estimators. Certification of Estimators (CPE) is available thru ASPE nationally. ASA the American Subcontractors Association is locally headquartered here as well. ASA also offers a Certified Constructor program for those wishing to add some clout to their companies resume. We interview and network extensively with our members at all 3 offices, and the Architects we call on.

The ASPE hosts an annual dinner and tradeshow event 'Forecast 2000' this January 16th at the Embassy Suites to panel these views. The construction public statewide is invited. Hundreds have attended this informative event over the last several years. For more information on the plan room or our networks visit our website:

www.constructutah.net

Best Regards
Michael Luke
Mountainlands Area Plan Rooms SLC, Orem, Ogden
ASPE West Region Governor
ASA Utah State Director

Headquarters

american society of professional estimators ASPE

american subcontractors association of utah ASA

& official plan room for associated builders and contractors of utah ABC

583 West 3560 South, Suite #4, Salt Lake City, Utah  84115  801-288-1188  fax 288-1184