Glenn Matteson

In part, the lag in adopting technology has to do with the perception by middle and field management that every project is so unique, that they are unable "to see the bigger picture and the efficiencies [of technology]," says Glenn Matteson, a senior consultant with FMI Corp."[Contractors] get into a rut and focus on the details and how to solve problems rather than to avoid problems," he says."I think that can get into the way of the process of how we procure, estimate and bid work."

Moving into the technological age is more than just building up your business, and it occurs in a much more complicated way since the results and benefits of doing such are not always clear, Matteson says.

The ideal way to integrate technology into the workplace "is to start small," Matteson says."Find an internal champion and go from there.If it starts at the top, you can coach and guide and take small measures , find the baseline and figure out if production was better, for example."

Several applications used in construction can be enhanced or reinvented using technology, Matteson says.
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In fact, Matteson and Mathews both say the cost of technology isn't really a barrier at all.
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Matteson suggests improving on a company's existing resources.Contractors, for example, can start by applying the equipment they have in a smarter way.Put simply, companies should do more using less.Matteson uses the example of the heavy-highway and civil contractor who knows little about how its fleet performs in terms of lost fuel costs due to idling time, or the effects of a poor maintenance program.So by outfitting an already top-performing piece of heavy equipment with a telematic device, field productivity is positively impacted.
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"I think it comes down to trying something and see if it improves productivity," Matteson says.

Managerial maturity is often a problem with small and startup companies because they can not adequately handle the three functions of construction : getting the work, completing the work and accounting for the work, says Glenn Matteson, senior consultant for FMI.

For instance, a superintendent in a large firm gets the idea he wants to be his own boss, says Matteson.Getting the work and doing the work come naturally to him because he has grown up in it.Keeping score is often where he falls down.If you do not know it be fourth down and you think it be first down, you may very well call the wrong play..

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When the market is very good, contractors can overextend themselves, says Matteson.They get beyond what their good people can manage.They get beyond the capacity of what their supervision can manage and the labor and equipment productivity start to deteriorate.The job costs start to run over and they be not making the kinds of profits they ought to be getting in a flush market..

Schleifer recommends a company limit its annual growth to 15 percent plus inflation.He says a company growing at 16 to 20 percent is at financial risk and a company growing at a rate greater than 20 percent annually is at exceptional financial risk.
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Another warning sign is when a contractor starts experiencing profit fade, according to Matteson.

You can watch their work-in-progress statements and as the job is nearing completion, the original estimated gross margin is fading, Matteson says.They may have estimated 15-percent gross profit on a job at the start of a project and halfway through the job they still think they are going to get 15 percent, but by the time the job is 90-percent complete, they all of a sudden realize they are only going to get 8 percent.When you start to see this happen with the majority of the jobs, it means the projects are out of control and have probably been from the beginning..

Matteson says this problem often stems from overextension, poor supervision and allowing manhours and equipment hours to spiral from day to day.

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Glenn MattesonFMI