CASE STUDIES
   
Span of Control & Reducing Debt Service
   
Purchase Order System & Lease vs. Buy Equipment
   
Estimating &
Field Feedback
   
Power Struggle & Change Order Management

 

Focus of Business:
General contractor located outside San Francisco, CA

• $25,000,000 Annual Revenue
• In business 11 years

Business Problems (Before DMA):
This construction company is owned by two brothers with equal power. One of the brothers ran the office and the other one was responsible for field operations. Unfortunately, they were always positioning for power and their employees were caught in the middle, and suffering. Productivity, moral and profits were down.

All of their projects had change orders but the company was lax preparing the proper documentation and getting the project owners to sign them. Consequently, they were having a difficult time collecting the increased costs associated with these changes.

Power Struggle Solution:
DMA set up a functional organization chart and wrote job descriptions for management. Both brothers had a much clearer understanding of what they were responsible for and they made a conscious effort not the step on each others toes.

Change Order Solution:
DMA developed a change order procedure which was very easy to administer and allowed them to capture the money they were leaving on the table. We put the responsibility of controlling the change orders on the project managers. DMA also developed reports that track project slippage and win to bid ratios.

Result:
The relationship between the brothers became less tense and they gravitated to their functional roles. They made a concerted effort not to put their employees in the middle. The culture of the whole company changed for the better within a couple of months. The newly implemented change order procedure enabled the company to recoup an additional $425,000 in the first year.


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