Financial stability in construction is the 7th article in our series on what the key factors are for sustaining and building a successful construction contracting company.
Why Financial Stability is important for a Construction Company
Financial stability is crucial for any company, including construction companies. In the construction industry, where projects can be large-scale and involve substantial investment, financial stability becomes even more significant. Here are some reasons why financial stability is important for a construction company:
Project Financing
Construction projects often require substantial upfront investments in terms of labor, materials, and equipment. Financial stability ensures that a construction company can secure the necessary funding to initiate and sustain projects. It enables them to access loans, lines of credit, and bonding facilities, demonstrating their ability to repay debts and meet financial obligations.
Cash Flow Management
Construction projects typically involve extended timelines, and payments are often received in installments based on project milestones or completion stages. Financial stability allows a construction company to effectively manage its cash flow by covering immediate expenses, paying employees and subcontractors, and maintaining a positive working capital position. It ensures that the company can meet its financial obligations throughout the project duration.
Bid and Tender Competitiveness
Financial stability enhances a construction company’s competitiveness when bidding for projects. Clients and project owners often evaluate the financial strength and stability of construction firms to ensure they can complete the project successfully. A financially stable company demonstrates its ability to mobilize resources, complete projects on time, and handle any unforeseen financial challenges, giving it a competitive edge over less stable competitors.
Relationship with Suppliers and Subcontractors
Construction projects rely on a network of suppliers and subcontractors who provide materials, equipment, and specialized services. Financial stability enables a construction company to build and maintain strong relationships with suppliers and subcontractors. It ensures timely payments and fosters trust and reliability, leading to favorable terms, priority service, and access to the best resources in the market.
Long-Term Business Sustainability
Financial stability is essential for the long-term sustainability of a construction company. It enables the company to weather economic downturns, industry fluctuations, and unforeseen circumstances such as project delays, cost overruns, or legal issues. A financially stable company can absorb setbacks, adapt to changing market conditions, and continue operating profitably, ensuring its survival and growth in the long run.
Reputation and Credibility
Financial stability contributes to the reputation and credibility of a construction company. Clients, investors, and stakeholders perceive financially stable companies as reliable, trustworthy, and capable of delivering projects successfully. A strong financial position enhances the company’s brand image and helps attract new clients, secure repeat business, and build long-term relationships based on trust and confidence.
Overall, financial stability is vital for a construction company as it enables them to secure project financing, manage cash flow effectively, remain competitive in the market, build strong relationships, ensure long-term sustainability, and maintain a positive reputation.
In this article we’ll cover some of the most commonly used building automation input sensors and where there located. Building control sensors are located throughout a building in strategic positions to monitor and control various aspects of the building’s systems.
If you prefer to watch the video of this presentation than scroll to the bottom click on this link. Building Automation Input Sensors
Here are some commonly used building automation control sensors and why they’re used.
Current Sensor
A Current sensors, also known as current transducers, are used to measure the electrical current flowing through a conductor or piece of equipment. They play a key role in tracking energy usage of equipment by monitoring the current draw.
The current sensor is typically installed around the conductor carrying the electrical current of the equipment being monitored. The sensor may be a split-core design, allowing it to be easily clamped around an existing wire without interrupting the electrical circuit.
Current Sensor for Monitoring of Equipment Power Consumption using and Energy Meter
The output signal of the current sensor is typically an analog voltage or current that is proportional to the measured current. This signal can be fed into data acquisition systems, energy meters, or control systems for further processing and analysis.
By continuously monitoring the current draw using the current sensor, the energy usage of the equipment can be calculated. The output signal from the current sensor can be processed and integrated over time to track the energy usage of the equipment. This information can be used for energy monitoring, load profiling, energy management, or billing purposes.
A dew point temperature sensor is used to measure the dew point temperature, which is the temperature at which air becomes saturated and condensation begins to form. There are some that calculate the dewpoint by reading the temperature and humidity and having an onboard program calculate the dewpoint temperature.
Dew Point Temperature Sensor serving a Chilled Beam
A dewpoint temperature sensor is required on a chilled water radiant panel, like this chilled beam here. This dewpoint sensor is mounted on the pipe and sends the information to the controller. If the dewpoint temperature hits the setpoint, an output signal is sent to the control valve to close, preventing anymore chilled water from circulating through the chilled beam until the proper conditions are met that prevent condensation from occurring, as chilled beams have no condensate drains.
Carbon Monoxide Sensor
Carbon monoxide (CO) sensors are commonly used in conjunction with garage exhaust systems to monitor the concentration of CO in the air and ensure the safety of occupants.
Garage exhaust systems are designed to remove exhaust gases, including CO, from the garage space. They typically include ventilation fans or ductwork connected to the outside. The CO sensor can increase the fan speed in conjunction with a VFD when certain concentrations of carbon monoxide are reached. The activation of the exhaust system helps to reduce CO levels, providing a safer environment for occupants.
Carbon Monoxide Sensor serving a Garage Exhaust System
When the CO concentration exceeds the threshold, the sensor can provide an audible or visual alarm to alert occupants of the hazardous conditions.
Differential Pressure Transmitter for Dirty Filters
Differential pressure is used to indicate when filters have become dirty. When the filters are clean there is less pressure drop across them. As dirt becomes trapped on the filter media the pressure drop across the filter increases which increases the differential pressure.
Differential Pressure Transmitter for Dirty Filter Alerts
By putting a differential pressure transmitter an alert can be sent to the facility personnel to change the filters. Increased pressure drop across the filter causes an increase in fan energy and utility cost.
CO2 Sensors
Carbon dioxide (CO2) sensors are used to monitor indoor air quality and ensure adequate ventilation. They are often placed in areas where people gather, such as conference rooms, classrooms, and auditoriums. CO2 sensors, when integrated with economizers, play a vital role in controlling ventilation air to a room based on the levels of carbon dioxide (CO2) present in the indoor environment.
The CO2 sensor continuously measures the concentration of carbon dioxide in the air.
Carbon Dioxide Sensor for Ventilation Control
Based on building codes and standards, such as ASHRAE standard 62.1, there are recommended or required ventilation rates for occupied spaces. These rates are designed to maintain healthy indoor air quality. CO2 sensors help determine if the current ventilation rate is adequate or if adjustments are necessary.
The CO2 sensor provides a control signal based on the measured CO2 concentration. As CO2 levels rise due to occupancy or other factors, the sensor sends a signal to the building automation system (BAS) or the economizer control system.
When the CO2 concentration surpasses a pre-set threshold (often referred to as the setpoint), the economizer control system increases the outdoor air intake. This adjustment brings in more fresh air from the outside to dilute the CO2 and maintain acceptable indoor air quality.
The setpoint for the CO2 concentration can be adjusted based on the specific requirements of the space and occupant density.
Differential pressure sensors, in combination with variable frequency drives (VFDs), can be used to control the speed of pumps in a system. Here’s a general explanation of how this control mechanism works:
Differential pressure sensors are installed in the system to measure the pressure difference between two points, typically just before the most remote coil in the system. The sensor measures the difference in pressure across a flow element, such as an orifice plate or a flow sensor.
Differential Pressure Transmitter for Pump Speed Control
The differential pressure sensor provides a feedback signal to the control system, indicating the actual pressure differential in the system. This feedback is used to determine the flow rate and the speed of the pump using a variable speed drive (VFD). See our other video on “How VFD’s work”
A desired or target differential pressure setpoint is established based on the system requirements and design parameters. The control logic compares the actual differential pressure (feedback signal) with the setpoint.
Based on the comparison between the actual differential pressure and the setpoint, the control logic determines whether the pump speed needs to be adjusted. The control logic sends a control signal to the VFD to modulate the speed of the pump motor.
The VFD receives the control signal and adjusts the frequency and voltage supplied to the pump motor accordingly. By reducing or increasing the frequency, the VFD changes the speed at which the pump motor operates.
As the pump speed changes, the flow rate through the system is adjusted. The control system continuously monitors the differential pressure and adjusts the pump speed through the VFD as necessary to maintain the desired setpoint and optimize system performance.
By utilizing the feedback from differential pressure sensors and adjusting the pump speed through VFD control, the system can effectively maintain a desired pressure differential, regulate flow rates, and achieve energy savings by matching the pump speed to the system’s actual requirements.
Occupancy or Motion Sensors
These sensors detect the presence or absence of people in a room or area. They are commonly placed in spaces such as offices, meeting rooms, restrooms, and hallways to control lighting, HVAC systems, and security systems based on occupancy.
Static Pressure Sensor
A static pressure sensor is commonly used to control fan speed and maintain a desired static pressure within a duct. (See image above for example)
The static pressure sensor is typically installed at a strategic location or approximately two-thirds of the way down the main ductwork.
The static pressure sensor contains a pressure-sensing element, such as a diaphragm, that is exposed to the air pressure in the system. As the air flows, the pressure changes, and the diaphragm deflects in response to these pressure variations.
The deflection of the diaphragm generates an electrical signal proportional to the static pressure. This signal is transmitted to the control system for further processing.
The control system is programmed with a desired static pressure setpoint, which represents the target pressure level. The control logic continuously compares the measured static pressure from the sensor with the setpoint.
Based on the comparison between the measured static pressure and the setpoint, the control logic determines whether the fan speed needs adjustment to maintain the desired static pressure. If the measured static pressure deviates from the setpoint, the control logic sends a control signal to the fan motor or a variable frequency drive (VFD) to adjusts the speed of the fan motor.
There is a variation of the fixed static pressure setpoint strategy that uses resetting of the static pressure setpoint based on the feedback of terminal damper positions.
By utilizing a static pressure sensor in conjunction with fan control systems, HVAC systems can maintain the desired static pressure levels or reset levels, optimize airflow, and ensure efficient operation. This control mechanism helps balance air distribution, control temperature differentials, and improve energy efficiency in HVAC applications.
Pressure Monitor
In a hospital operating room, pressure monitors are used to ensure and control the air pressure within the room to maintain specific pressure differentials and prevent the entry of contaminants. Here’s a general overview of how a pressure monitor helps control the pressure in a hospital operating room:
Pressure Monitoring: The pressure monitor is typically installed in the operating room and is connected to pressure sensors strategically placed within the room. These pressure sensors measure the air pressure inside the operating room and provide real-time feedback to the pressure monitor.
Setpoint and Control Logic: The pressure monitor is programmed with a setpoint, which is the desired pressure level for the operating room. The control logic within the pressure monitor continuously compares the measured pressure from the sensors with the setpoint.
Differential Pressure Calculation: The pressure monitor calculates the pressure differential between the operating room and adjacent areas or reference points, such as the corridor or anteroom. This differential pressure is crucial to ensure air flows from clean to less-clean areas, preventing the ingress of contaminants into the operating room.
Control Action: Based on the comparison between the measured pressure and the setpoint, the control logic determines whether the pressure needs adjustment to maintain the desired differential pressure. If the measured pressure deviates from the setpoint, the control logic triggers a control action.
Air Handling System Control: The pressure monitor sends control signals to the air handling system, which may include HVAC systems, fans, and dampers. These control signals adjust the airflow rate, temperature, and damper positions to modify the air supply and exhaust within the operating room.
Pressure Correction: By controlling the airflow rates and adjusting dampers, the air handling system modifies the air pressure within the operating room. The objective is to bring the measured pressure back to the desired setpoint, thereby maintaining the proper pressure differential.
Alarm and Alerts: Pressure monitors often incorporate visual and audible alarms to alert personnel in the event of pressure deviations beyond acceptable limits. This allows for immediate attention and corrective action to maintain the required pressure conditions.
Real-Time Monitoring: Pressure monitors provide continuous real-time monitoring of the pressure in the operating room, ensuring that the pressure differentials are maintained within the specified range throughout surgical procedures.
By utilizing pressure monitors in conjunction with the air handling system, hospital operating rooms can effectively control the air pressure to create a controlled environment that minimizes the risk of contamination and supports a sterile surgical environment.
Humidity Sensor
A humidity sensor, also known as a hygrometer, is a device used to measure and monitor the moisture content or relative humidity in the air. There are different types of humidity sensors, but one common type is the capacitive humidity sensor. Here’s a simplified explanation of how a capacitive humidity sensor works:
Capacitive Principle: The capacitive humidity sensor utilizes the principle that the electrical capacitance of a material changes with the amount of moisture it absorbs. It consists of two conductive plates separated by a moisture-absorbing dielectric material.
Dielectric Absorption: The dielectric material used in the sensor has the ability to absorb water molecules from the surrounding air. When the moisture content in the air increases, water molecules are adsorbed onto the dielectric material, causing it to expand.
Capacitance Change: As the dielectric material expands or contracts due to moisture absorption or release, the distance between the conductive plates changes. This variation in distance alters the capacitance between the plates.
Capacitance Measurement: The sensor measures the capacitance between the plates using an electronic circuit. This circuit applies an electrical charge to the plates and measures the time it takes for the voltage to decay. The rate of decay is influenced by the capacitance, which in turn is influenced by the moisture content.
Conversion to Relative Humidity: The capacitance measurement is converted into a relative humidity (RH) reading using calibration curves or algorithms. These curves or algorithms map the capacitance values to corresponding relative humidity levels, providing an accurate humidity reading.
Output and Integration: The humidity sensor provides an output signal, usually in the form of an analog voltage or a digital signal, which can be interpreted by a microcontroller or other electronic systems. This information can be used to control ventilation, HVAC systems, or trigger alerts based on humidity thresholds.
It’s important to note that humidity sensors require calibration to ensure accurate readings, as factors such as temperature and aging can affect their performance. Additionally, there are other types of humidity sensors, such as resistive, thermal, and dew point sensors, which operate on different principles but serve the same purpose of measuring humidity.
Light Sensors
Light sensors, also known as photocells or light-level sensors, measure the amount of light in a space. They are typically placed near windows or in open areas to automatically adjust the artificial lighting levels based on the available natural light.
Water Flow Sensors
These sensors are installed in plumbing systems to monitor water usage, detect leaks, and prevent water damage. They can be found near water fixtures, in mechanical rooms, or along water supply lines.
Smoke and Fire Sensors
Smoke detectors and fire sensors are crucial for fire safety. They are typically installed in various locations throughout a building, including hallways, common areas, and individual rooms.
The Importance of Technology in the Construction Industry
This is the sixth article in our series on what it takes to create and sustain a successful construction contracting company. See why Technology in Construction is one of the key factors for creating a successful construction company. Technology plays a crucial role in the construction industry, revolutionizing various aspects of the entire construction lifecycle. Here are some key areas where technology has immense importance in the construction industry.
If you prefer to watch the video version of this presentation then scroll to the bottom or click on the following link. Technology in Construction
Drones
Unmanned aerial vehicles (UAVs) or drones are used for aerial surveys, site inspections, and data collection. Drones equipped with cameras and sensors can capture high-resolution images, videos, and 3D maps of construction sites, assisting in site analysis, progress monitoring, and quality control. Drones also enhance safety by reducing the need for workers to access hazardous areas manually.
Drones in Construction
Virtual and Augmented Reality
Virtual reality (VR) and augmented reality (AR) technologies are transforming the construction industry. VR allows stakeholders to experience immersive virtual walkthroughs of buildings before they are constructed, facilitating design reviews and client engagement. AR overlays digital information onto the physical environment, aiding in on-site visualization, quality control, clash detection, and maintenance.
Virtual Reality in the Construction Industry
Design and Visualization
Technology enables architects and engineers to create sophisticated 3D models and visualizations, allowing stakeholders to better understand and review the proposed structures before construction begins. This helps identify design flaws, optimize efficiency, and enhance collaboration.
Internet of Things (IoT)
IoT devices and sensors are deployed on construction sites to monitor and collect data on various parameters, such as equipment performance, energy usage, environmental conditions, and worker safety. IoT data enables real-time monitoring, predictive maintenance, and data-driven decision-making.
Wearable Technology
Wearables, such as smart helmets, vests, and glasses, incorporate sensors and communication capabilities. They provide real-time data on worker location, vital signs, fatigue levels, and exposure to hazardous conditions, enhancing safety and health management on construction sites.
Robotics and Automation
Robotics and automation technologies improve construction efficiency and productivity. Robotic systems can perform repetitive tasks, such as bricklaying, concrete pouring, and material handling, with precision and speed. Automation is also used for off-site prefabrication, reducing manual labor, and enhancing quality control. These technologies improve safety, productivity, and efficiency, while also addressing labor shortages in the industry.
Prefabrication and Modular Construction
Technology has advanced prefabrication and modular construction techniques. Off-site manufacturing of building components allows for better quality control, faster construction timelines, and reduced waste. Prefabrication also enables higher precision and cost savings, particularly in repetitive construction processes, and improves safety by minimizing on-site work.
3D Printing
3D printing, or additive manufacturing, is used to create building components and prototypes with precision and efficiency. It enables complex geometries, reduces material waste, and allows for customization. 3D printing is often employed in the production of architectural models, structural components, and prefabricated elements.
Building Information Modeling (BIM)
BIM is a digital representation of a building’s physical and functional characteristics. It integrates various data sources, including architectural designs, structural analysis, and material specifications, into a single platform. It facilitates integrated project management, allowing architects, engineers, contractors, and other stakeholders to collaborate and share information seamlessly. BIM improves coordination, reduces errors, enhances efficiency, and enables better decision-making throughout the project lifecycle.
Construction Modeling using Technology
Construction Management Software
Construction management software provides tools for project planning, scheduling, resource allocation, cost estimation, document management, and collaboration. These software solutions help streamline project workflows, enhance communication, and improve overall project management. Real-time project tracking and communication tools facilitate better collaboration between teams, subcontractors, and clients. Real-time updates and mobile applications allow project managers to monitor construction activities on-site and address issues promptly. This leads to improved productivity, reduced delays, and enhanced project control.
Sustainability and Green Construction
Technology plays a vital role in promoting sustainable construction practices. Energy modeling software helps optimize building designs for energy efficiency. IoT devices and sensors enable real-time monitoring of energy consumption, water usage, and indoor air quality. Additionally, technologies like green materials, renewable energy systems, and smart building management systems contribute to reducing the environmental impact of construction projects. Green building technologies, including solar panels, energy-efficient systems, smart lighting, and water conservation techniques, help minimize environmental impact and reduce long-term operational costs.
Data Analytics and Automation
The construction industry generates vast amounts of data, and technology enables its collection, analysis, and utilization. Data analytics provides valuable insights into project performance, productivity, and cost management, enabling informed decision-making. Automation and robotics streamline repetitive tasks, increasing efficiency and productivity.
Mobile Applications
Mobile apps are extensively used in the construction industry for project management, communication, and on-site operations. These apps facilitate access to project documents, drawings, and schedules, enable collaboration among team members, and provide real-time updates from the field.
Safety and Risk Management
Technology plays a crucial role in improving safety on construction sites. Wearable devices, such as smart helmets and vests, can monitor workers’ vital signs, detect hazards, and alert them to potential risks. Sensors and IoT (Internet of Things) devices enable real-time monitoring of safety parameters, such as air quality, temperature, and structural integrity, ensuring a safer working environment.
Construction Techniques and Equipment
Technology has revolutionized construction techniques and equipment. Advanced machinery, such as cranes, excavators, and robotic systems, enhance speed, precision, and safety in construction operations. Drones are used for aerial surveys, inspections, and monitoring construction sites, providing valuable data and reducing human risk.
These are just a few examples of the many technologies that are transforming the construction industry, improving productivity, reducing cost, improving safety, collaboration, and sustainability. Embracing these technological advancements allows construction companies to stay competitive, reduce cost, deliver better-quality projects in a timely manner, and adapt to the evolving needs of the built environment.
How to write a professional construction proposal. In this presentation we’ll discuss how to write a professional looking construction proposal that is more than a simple single page document. A well-designed and professional-looking proposal demonstrates your commitment to quality and detail, and it creates a positive impression of your business and enhances your credibility with potential clients. We’ll show you how you can customize this proposal template for your own company.
In the competitive construction industry, a professional proposal can help you stand out from the competition. There are projects that require the contractor to submit a proposal that includes information on their proposed project team and past projects completed. Having a proposal template that includes some of these requirements will make it quick and easy to customize for any future projects. We’ll cover the 11 key pages in this proposal that is available from this link. Construction Proposal Template
Construction Proposal Template (Fully Customizable)
The Cover Page
The cover page should provide the reader with a quick overview of what they can expect from reading further. This would include the following.
The name of the project. This is important because there are often many projects going on at the same time.
The clients company name and contact. This would be the person receiving the construction proposal.
Your company name and contact information. This would be the person who the proposal is submitted on behalf of.
Your Company logo.
The date of the proposal.
You could also include any internal proposal tracking numbers for quick reference or for connection with a CRM program.
Table of Contents
This is a list of all the sections and subsections with their respective page numbers for easy navigation. Just click on any of these titles and it will jump to that section.
Executive Summary
Give an overview of the project with a brief description of the scope of work. In another section we’ll provide our full scope of work. Identify the key objectives of the project as expressed by the RFP or owner. This could be timely completion, quality and safety, cost management, client satisfaction, sustainability and environmental considerations, innovations, or long-term durability and maintainability. This communicates to the proposal recipient that you heard their concerns.
Executive Summary in Construction Proposal
Identify your companies expertise and years in business. If you’re a new startup then leave this portion out and highlight the experience of your team.
Key Proposal Highlights
You can customize this section to meet the specific concerns of the project. This covers a description of what will be included in your detailed scope of work including major task, milestones and deliverables.
There is a “Quality Assurance” statement ensuring that you’ll be providing the highest quality workmanship and materials along with best practices and quality control measures.
There is a statement on “Timely Completion”, and the acknowledgement of the importance of completing the project on time, and that you have the experienced project management team to do so.
There is a statement on “Safety and Compliance”. Safety is always a concern for owners and contractors, so reiterating your commitment to safety is a good reminder that you focus on safety and complying with building and safety regulations.
There are statements on “Cost Control”, Client Collaboration”, and your commitment to excellence. Just personalize the proposal with your company name and the name of the person writing the proposal.
Scope of Work Section
The next section provides a detailed scope of work. Start by inserting the project name and a brief description of the project including the location. The following scope of work can be customized for any trade, just enter the scope of work that you are bidding on, and describe the main items of work. Keep the first description to identify the documentation that you are bidding on. This provides a reference for which set of documents and the dates of those documents that your proposal is based on.
Scope of work section in construction proposal
Then identify all the major portions of your scope of work. This informs the proposal recipient that you understand the specific project requirements.
Clarifications
In the clarifications section it’s important to identify areas of the scope that maybe confusing. Here you can clarify your interpretation or understanding of the documents, and how you have priced your proposal based on these clarifications. Listed are some areas that you might review for clarification purposes, but edit this section and all portions of this proposal for your project specifics.
Proposal Exclusions
Just like the clarifications seek to bring everyone to the same understanding of what is being proposed, the exclusions make it clear on what is not included in your proposal. In this section it’s important that you identify those areas of the construction documents that assign you scope of work that you are not including. When in doubt, be sure to exclude it, but don’t go overboard and list everything here, just those items that might be attributed to your scope of work that you want to make clear that you’re not providing any cost for.
Project Team
Some Request for Proposals (RFP’s) or Request for Qualifications (RFQ’s) require that you identify the project team that will be assigned to the project bidding. You can easily insert the photo of your team in these placeholders, or you can submit your proposal without photos and just the descriptions of your team members. List the key team members and a little about their background and expertise.
Project Team in Construction proposal template
References and Past Projects
Along with the project team, some projects require that you submit references for past projects. Here you can easily insert your own project photos and descriptions, or once again just provide a description.
It’s important that you insert your standard terms and conditions here, so that they become part of the contract. Make sure to customize this section to fit your companies requirements. We’ve listed some common terms and conditions for your reference, but be sure to make them fit your needs.
Terms and Conditions in Construction Proposal Template
Pricing and Signatures
The last page will contain the pricing and signatures. Customize this page with the name of the company your submitting your proposal to and your own information.
Header and Footer Section
The header contains the project information so that every page of your proposal is identified as to which project it is attached to including the date and project tracking number for internal purposes.
Get a Copy of this Professionally Written Construction Proposal for your company and start to project a higher quality image of your company. Construction Proposal Template
Learn how to write a Professional Looking Construction Proposal
