Construction Company Business Plan Equipment Needed To Launch

A major variable in the startup costs listed in your construction company business plan is the cash needed for equipment and tools. As you think through these needs, consider these choices.

Choosing Services

You cannot begin to estimate equipment requirements before knowing what type of construction you engage in and what services you will or will not offer. This decision should be driven by the experience of the team and the opportunity in the market, although the overall cost of equipment may enter into the decision as well. If it becomes apparent that you will not be able to recover the cost of equipment in a reasonable period of time, you may have to rethink offering services which require that equipment.

Buy, Lease, Rent, or Subcontract

Secondly, it is important to remember that purchasing outright the equipment required for a service you must offer may not be necessary. Leasing equipment can reduce the cost of launching and the needs for raising capital, although the total cost of acquiring the items will be higher in the end. If the equipment will be needed for tasks which wont be necessary on every project, or will only be needed sporadically or at one stage, renting the equipment for those periods of time may be a better option, assuming a quality renter is available in your locale.

Finally, it may make sense to simply outsource the work that requires certain specialized equipment to companies which already own the needed tools and have staff trained specifically. Subcontractors specializing in roofing or framing, for example, have the needed tools of the trade and the expertise to do the work less expensively than your company. However, keep in mind that the more work your company subcontracts, the greater the burden on your managers to check quality, to manage vendor schedule, and to develop other skills of vendor communication and negotiation.

IT Project Management Whats Coming in 2013 and Beyond

What got you here wont get you there. Its a simple, catchy line that over the past several years has become part of our business lexicon. The phrase was popularized by Marshall Goldsmiths best-selling book of the same title in 2007 and it essentially means the skills and behaviors that you possess today may prevent you from being more successful tomorrow.

Nowadays you hear the phrase used often in many contexts: sports, business, politics, and international affairs. And for project managers, especially IT project managers, Goldsmiths axiom is especially true. It wasnt so long ago that a PMI certification and expertise in waterfall project management made you a hot commodity in the job market.

But the times are changing. And considering several of the current trends in IT project management, what got you here in 2012 may not get you far in 2013 and beyond.

Agile Evolution

Since its introduction in 2001, the Agile development framework has seen incredible growth in popularity. Agiles flexible, iterative approach has gained steady approval in the marketplace as a more collaborative, real-time methodology than the more traditional waterfall model (for more on software development methodologies read our recent series on the topic).

What many industry insiders are now seeing, however, is that as Agiles use becomes more widespread, some organizations are favoring a hybrid approach that encompasses aspects of Agile as well as their own traditional methodologies. This may be a more practical approach for IT departments who may not be ready to make a big leap into Agile.

In a recent article, Jon Arnold of Centresource Interactive Agency explains his companys blend of traditional waterfall and Agile methodologies. The standard waterfall approachs main drawback, Arnold writes, is that youre never truly done with each phase. Despite the best laid plans, reality always sets in: a design decision needs to be amended to fit within a development environment; a forgotten interior page element suddenly becomes a necessity; or a developer needs a consult with a designer to work out an animation or visual transition.

Arnold says his teams love the iterative approach of Agile for development-intensive projects, but some clients can be a bit intimidated by what can be viewed as a frenetic, stressful schedule (though I suspect Agile purists might refer to this as cost-effective delivery). By combining some of the traditional planning and communication aspects of traditional waterfall with an Agile approach to development, Arnold has found a hybrid approach that works for many clients, and some industry watchers believe this best-of-breed approach may become more common in the future.

Show Me the Money (And Not Just the Cost Savings)

As more organizations take a portfolio management approach to their projects, the pressure to rationalize project investments via quantifiable business results will continue to increase. In todays tough economic climate, PMO heads face higher scrutiny than ever from organizational stakeholders, and more and more PMO heads are seen as portfolio managers, ensuring that projects meet or exceed a broad range of business metrics.

Cost savings, increased employee productivity, and higher application availability are just a few of the ways that PMOs have traditionally measured IT projects success (or lack thereof). For the most part these metrics are reflect a cost-based criteria for project justification (by lowering existing costs or avoiding costly failures and inefficiencies). And in a larger sense, the cost argument underwrites the organizational justification for the PMO itself. In other words, PMOs exist first and foremost to help an organization run more efficiently, not necessarily contribute directly to the bottom line.

Theres a growing point of view, however, that PMOs should make the leap from cost center to profit center. Simply said, a PMO must justify its existence and its collective project portfolio by directly contributing the organizations bottom line. While this may not sound revolutionary on the surface, it represents a fundamental shift from a passive PMO that prioritizes and implements projects as directed from organizational leaders to an active PMO that identifies and sells projects to internal stakeholders, emphasizing projects that materially impact business results. The PMO becomes, in effect, an internal, self-funded consulting organization. And within this new PMO paradigm the impact on project metrics is clearthe days of measuring project success based solely on a cost-based approach may be over.

PMP Certification, Not What It Used To Be (But Still Worth Having)

Over 470,000 people have earned the Project Management Professional (PMP) certification, and it remains easily the most well-known and valuable credential in the project management profession. But in a recent article discussing major industry trends, UK-based project management training firm ESI claims, Internal certifications in corporations and federal agencies will eclipse the PMP. This is quite a bold prediction.

And this may prompt some to ask if a PMP certification is worth having.The answer is (even if ESI turns out to be 100% correct) almost certainly yes. Even while many Fortune 500 companies and government agencies may have their own internal, proprietary credentials that are undoubtedly important inside the organization, those credentials lose much if not all their relevancy (and market value) once an individual leaves the company. Will the IT department at Ford care if youre a certified Bank of America project manager? Its hard to say, but theres little doubt the folks at Ford would fail to recognize the value of someone with a PMP credential.

The significance of ESIs prediction isnt necessarily what it says about the relative value of a PMP credential. What we should take away from the statement is that the skills and certifications organizations value can and will change over time. And for project managers, this underscores the importance of keeping current with their organizations and, in a larger sense, the marketplaces requirements.

The Future Is Change

For IT project managers the adage what got you here wont get you there seems especially apt. The profession continues to evolve, not only in terms of the skills needed to be successful, but also in light of a market place with an ever-increasing bottom line emphasis.

So what other factors or trends do you think will shape the future of project management? Id love to hear from you.

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Top 10 Secrets Of Federal Government Employee Discounts

Although government jobs are some of the most stable careers in the economy, federal employees are still watching their bank accounts and trying to save money. The good news is that many companies offer public servants deals on vacations, clothes, phones, auto insurance and home improvement. We have researched and compiled a list of the Top 10 Secrets of Federal Government Employee Discounts.

1. Food

10 percent discounts are offered to military members dining at IHOP, Denny’s, T.G.I Friday’s, Long John Silver’s and the Hard Rock Cafe. Applebee’s also offers a 15 percent discount at selected locations.

2. Clothing

10 percent discounts are offered at Nautica and New York and Co. Fans of Old Navy know the company offers a discount on the first of every month. These discounts can also be used in conjunction with coupons and other methods of saving.

3. Auto Parts
5 to 10 percent is offered at Kragen Auto Parts. Advance Auto Parts offers active and retired military members 10 percent off. AutoZone offers military discounts as well.

4. Insurance

Depending on the state, Geico offers between 3 to 10 percent off automobile insurance. Liberty Mutual also offers car insurance discounts.

5. Home Improvement

Lowes and The Home Depot offer 10 percent discount at most locations. The government is also offering up to $1,500 in tax rebates for installing energy-efficient products. LongFenceandHome.com offers a discount to federal employees and military personnel on a wide variety of products and services.

6. Eyes

Group Health Eye Care offers a 20 percent discount on prescription eyeglasses or sunglasses. Additionally, there is a one-time offer of 20 percent on contact lenses.

7. Gyms

Washington Sports Club offers 33 percent discount on their monthly membership fee.

8. Travel

When planning a trip, Govarm.com is our recommended site for vacation and leisure services. However, some other respected government travel sites are: Club Quarters, Government Vacation Rewards, Holiday Inn Express, and La Quinta Inns and Suites.

9. Communication and Technology

Verizon offers a 20 percent discount on phones, calling plans and accessories. When looking for home computing software and hardware consult Dell. They offer at least 10 percent when purchasing their products. Do you prefer Macs? Apple has recently offered various discounts on iPods and computers.

10. Fedsave.com and RecGov.org

These are the top recommended sites for searching government discounts. Fedsave.com offers a subscription which includes a free monthly newsletter highlighting savings and special offers on everything discussed above.

Government discounts are abundant, but are often overlooked. With some quick research, you may find yourself saving a lot of money.

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