Lead Carpenter's Handbook
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Introduction | Table of Contents | Back Cover

Foreword
By Linda Case

The most difficult challenge in a growing company is the development of "systems." A system is a known and tested way to accomplish a task or series of tasks that allows for a predictable outcome for the customer.

McDonald's made their money not with hamburgers and shakes - those were available everywhere and often in a tastier form. McDonald's made their fortune by developing a system that made it easy for their franchisees and employees to deliver their products and services predictably. Think of the most successful businesses - whether it's Price Club, Home Depot, Federal Express, UPS, or Jiffy-Lube - and behind each one's success you’ll find strong systems that support fairly ordinary employees, those systems are the reason that repeat customers can anticipate a positive buying experience and a satisfactory level of product quality and service before they walk in the door.

Those of us in smaller businesses must strive mightily to create the systems that will support our employees in delivering our vision to the market place. In a tiny business, the systems often exist only in the head of the owner. But as the business grows, the contents of the owner's brain must be distilled into a set of procedures that can he written down and taught to employees.

Tim Faller's book is about establishing a Lead Carpenter System in your company. Why? Because what area of your business is more unruly, more unpredictable, more subject to turnover than production? When your company was small, you made sure the quality was there personally. To do so you wore many hats. You sold the job, you estimated the job, you wrote up the contract, and then you put your belt on and did the job.

As your company grows, responsibility for different parts of that continuum, from sales to production, are assumed by different employees. But quality often suffers. In the past, construction companies tried to overcome this decrease in quality by paying supervisors to find the mistakes and then paying field staff to rework them. Tim Faller rightly points out, however, that depending on rework is expensive in time, money, and client satisfaction. Rather, empower the smart field employees you've hired. Only by pushing decision-making and management to the field level can you overcome the expense of supervising quality into the job. You want quality built into the job - built right the first time. That can only come from a responsible, well-trained, accountable field work force.

In my thirty years of remodeling experience - the first half from within a remodeling company, the second half working with hundreds of contractors of all sizes and types - I have seen one company after another try to invent the Lead Carpenter System, whether they knew it or not. How do you estimate for waste and mismanagement, for inaccurate or missing communication, for lack of training and technical knowledge? You don't. Your profitability and competitiveness is based on doing it right at the front line level of production. Now, how do you do that?

A well-planned and thoughtfully implemented Lead Carpenter System is the answer. Contractors have been crying out for a book that tells them how to achieve this. I can't imagine a book more chock full of ideas and solutions - not just from Tim's company, but from many other contractors as well. I particularly applaud Tim's non-dogmatic and open-minded approach which says, "Take from this idea buffet whatever will help you in your company." Tim doesn’t present one job description, but many. He leaves open to choice whether your company will need a production manager, and, most importantly, he clearly recognizes the difference between the idea and the real.

Distilled into this well-written book are thousands of hours of research and learning. You are lucky to have found such a resource!

Linda Case is president of Remodelers Advantage, Inc. in Silver Spring, Maryland.

Introduction: A Strategy for Growth

With hard work and a little luck, a time comes for every remodeling or custom building company when there is more work than the contractor can do, more jobs than the contractor can supervise, and more tasks than a single person can handle in any given day. With the harried contractor rushing from job to job during the day (scheduling, ordering, and putting out fires) and cranking out bids and estimates during the evenings and weekends, every element of the company begins to suffer. The contractors family and personal life often suffer as well.

Eventually, it's time to spread out the duties and responsibilities among more people. This is where the lead carpenter system comes in, which means a carpenter on the job is given the power to "own" the job: to plan it, schedule and supervise subs, supervise other employees, and deal effectively with the client, as well as perform carpentry.

I know how this system can transform a company because I have been both a lead carpenter and a production manager supervising other lead carpenters, and before that, I owned my own contracting company. My belief is that a lead carpenter system, when implemented correctly, can allow a remodeling enterprise to grow and prosper while maintaining the attention to detail typically found in a one-person company. The goal of this book, therefore, is to provide a blueprint for a lead carpenter system, which you can implement in your small- to mid-sized construction company.

While I'll refer throughout this book primarily to remodeling companies, many of the issues discussed apply as well to small custom building companies and to companies that do both remodeling and custom building. So while the lead carpenter system has been developed primarily to help remodelers, it can be adapted readily to custom builders. And for the sake of clarity, I will use the term “contractor” to refer throughout the book to the company owner, whether that person is a remodeling contractor or custom home builder.

WHY THE SYSTEM DEVELOPED

It's easy to see how the Iead carpenter system developed when you analyze the different types of construction projects and their specific management needs. For instance, the position of site superintendent has evolved in the area of new home development because of the need to supervise a number of home projects being built at the same time on contiguous sites. Likewise, large commercial developments function best with a project manager on hand who may not be a tradesman but who has the organizational skills needed to keep a large project running smoothly (see “Definition of Terms” below).

In the remodeling industry, the lead carpenter system developed to meet the specific demands found on jobs that are too small for a full-time supervisor to be cost-effective, but where there are so many job-site issues that supervision from a distance can lead to costly mistakes.  Therefore, it makes perfect sense to give the responsibility for the supervision of a job site to a person — in this case, a carpenter — who is already working there

PROBLEMS UNIQUE TO REMODELING

In remodeling, several conditions exist that require the degree of supervision that a lead carpenter can offer. First, there are the difficulties of dealing with an existing building. The floors are out of level. Termites may have taken up residence. The walls are 51/2 inches thick instead of 4 9/16 inches. If you’ve done much remodeling, I'm sure you can relate all too well. On these jobs, someone has to sort out how the new structure will tie into the existing and how the new and old finishes will blend. How will the new floor match the level of the existing? This is the kind of decision-making that begins at the start of the job and lasts throughout the project. These decisions cannot be made in haste or at a drafting table. They must be made by someone intimately involved with the job.

The second problem particular to remodeling projects is the presence of a homeowner. Of course, owners are involved in other building situations, such as new custom homes, but on those jobs you do not have owners living on the construction site. The presence of owners creates a number of problems. For example, homeowners often want to discuss the job first thing in the morning. They have questions about how the project looks or the location of a window. They are concerned about lead in the air and the dust on the floor. They invariably have a cat or dog that needs to be looked after during the day. They need the house secured against theft and weather at the end of the day. They worry about allowing subcontractors into their home (their sanctuary) and whether or not these subs are doing a good job. Plus, living on a construction site makes homeowners more than a little cranky. Often, they need some “hand-holding” and calming down. These are issues that cannot be effectively addressed from the office or supervised from the truck – even with a cell phone.

The third problem is the need to carefully supervise subcontractors. This is not because they can’t do their work, but because of complications in working in an older home. Reworking an old structure to meet current codes and standards often involves creative on-the-job problem solving. And even the best designers can’t see through walls and know what you will run into. Surprises are the norm.

Add to that the continuous changes to the schedule, the need to complete some work out of sequence, and the need for decisions to be made quickly. Often the project is small enough, for example, that the plumber has allotted only half a day for his work. If a decision that affects the plumbing cannot be made quickly, the plumber may walk away and not be able to return for several days.

Having a lead carpenter on the site to address these kinds of problems can bring peace of mind to the client as well as the contractor. Indeed, peace of mind, greater profits, and the potential for growth – while preserving your sanity – are what the lead carpenter system is all about.

DEFINITION OF TERMS

Because different terms are used in different parts of the country, and from one company to the next, this is a good time to define how key terms will be used throughout the book. For instance, while the lead carpenter position we are discussing is sometimes referred to as the "project manager," I use the latter term in a different sense.

Here are the definitions for the key terms used in this book:

• Project Manager: This term applies to an individual who assumes management of an entire project. This is a person not working with his tools (and, in fact, may not even be a tradesperson) but whose main responsibility is to manage the flow of work, coordinate trades, and bring the project to completion. This is a term more typically used in commercial work, but is also used in large-scale residential construction.
   
• Site Superintendent: This refers to individuals who supervise an entire site, usually containing more than one home, such as new home development. "Supes" are there on the site to supervise and coordinate. They spend a large amount of time scheduling so that the subs are working to maximum efficiency.
   
• Production Manager: This is the term for individuals who are typically based off-site and travel from job site to job site. They have responsibility for more than one job in different locales, and give on-site direction -- often specific instruction on the work to be accomplished that day. They also order material, schedule subs, etc. This role is often played by the owner of a remodeling company (if they don't have carpenters on the jobs that they can trust) the jobs become too numerous to handle.
   
• Lead Carpenter: I use this term to refer to a tradesperson who assumes management responsibility while continuing to work with his hands on the job. These jobs are typically smaller in nature than the jobs a project manager would manage-anywhere from $10,000 to as high as $500,000. For larger jobs, it is probably cost-effective to use a project manager.

WHO NEEDS A LEAD CARPENTER SYSTEM?

The lead carpenter system described in this book works best on full-scale remodeling projects, These are projects that involve an addition or substantial renovation work where the remodeling company will be in the home for a month or more, and the remodeler wants to use his own employees to perform the carpentry work. These projects typically involve several trades and a variety of materials.

The size of a company and the number of jobs produced each year will also dictate the use of this system. Obviously, if a company has one job going at a time, and the owner chooses to work on that job, a lead carpenter would not he necessary.

Let's look now at the typical evolution of remodeling companies, Most often they start out with a person who has some experience in the trades and who wants to "go it on his own." He has the truck, a couple of jobs lined up, and has just taken the test for a contractor's license, In the beginning, these brave and hardworking people don all the hats -- manager, salesman, bookkeeper, carpenter, and helper. As the work proceeds, most realize this is not as much fun or as profitable as they had thought, and some return to the relatively simple life of working for someone else.

However, a fair number like the challenge of being the boss and recognize the need to have assistance. Usually, the first employee is a helper, someone to dig, clean, cut, nail, etc. As the business grows, the company owner recognizes the need to be gone from the job regularly during the day to make sales calls, prepare bills, perhaps collect a check. This creates a need to hire a carpenter who can “run” the job while he is gone.

The need for a lead occurs when one or more of the following conditions exist:

Greater Sales Volume

When the company reaches a sales volume that can no longer be produced by one person, the owner then needs help meeting all the demands of scheduling, ordering, communicating, and supervising. This volume level will vary for every person and every company, and will also depend on the number of jobs it takes to reach that volume. For instance, if a company is doing $500,000 of work in a year, but it’s done on only one or two jobs. The owner will want to stay involved. It would be counter-productive, and therefore not profitable, for the owner to hand only one or two jobs over to a lead carpenter. But if the same company is doing $500,000 a year with eight jobs, the owner will want some help with the production and supervision of each job.

Anticipated Growth in Sales

Sales leads have increased and there is a happy expectation that the company will grow. Of course, we must recognize that not all people want their companies to grow. We have seen and read about people who never want to move away from the field; they enjoy the construction part of the business, and the company is profitable. If that is their goal, they should keep it that way. But if the expectation is that the company will grow, and the leads are increasing, the owner will need to delegate some part of the business to someone else. This someone else can be either a new salesman or a lead carpenter. In the first case, the owner can remain in the field and stay involved in hands-on production, and in the second case, the owner can continue to do sales and marketing and delegate the production work to the lead carpenter, or several lead carpenters on several jobs.

Desire for Time Off

We change, as we age and mature, and our lives must change. Marriage, children, and aging bodies all contribute to the need to share the responsibility or load of a construction company with others. Many people work 60 to 80 hours a week to keep the business running, or perhaps just afloat. For some, this is what keeps us young; for others, it brings gray hair. These people need some relief. A vacation. A long weekend. As you may know, families demand more and more time as the kids get into Little League, Scouts, soccer, and other social activities. In short, delegation to the lead carpenter allows a contractor time to enjoy life outside the company.

WHO DOESN'T NEED A LEAD CARPENTER SYSTEM?

One question I am often asked in my lead carpenter seminars is: Will this system work with new home construction? The answer depends on several factors. One is the size of the house. Just like the size of a remodel, the size of the project will determine whether the lead carpenter is really a lead carpenter or a project manager. The difference lies in how much he uses any tools other than a calculator or tape measure. Many new home projects are large enough to warrant a full-time superintendent rather than a lead carpenter. If the project is small enough that a carpenter can work on the site and manage the job, the system will work.

The second factor that might preclude the lead carpenter system in new home building is the source of labor. If a company is building a house primarily with its own labor (that is, the company has the carpenters on the payroll), then this system will work. However, if the company decides to subcontract out all the labor and simply be the general contractor, the system does not fit, mainly because there won't be a carpenter employed by the company on the job from start to finish. Because the labor on the job would be subcontractors that come and go, the benefit of continuity is lost and must be supplied by a site superintendent or a project manager. This person fills management roles but does not provide the carpentry labor.

never want to move away from the field; they enjoy the construction part of the business, and the company is profitable. If that is their goal, they should keep it that way. But if the expectation is that the company will grow, and the leads are increasing, the owner will need to delegate some part of the business to someone else. This someone else can be either a new salesman or a lead carpenter. In the first case, the owner can remain in the field and stay involved in hands-on production, and in the second case, the owner can continue to do sales and marketing and delegate the production work to the lead carpenter, or several lead carpenters on several jobs.

Desire for Time Off

We change, as we age and mature, and our lives must change. Marriage, children, and aging bodies all contribute to the need to share the responsibility or load of a construction company with others. Many people work 60 to 80 hours a week to keep the business running, or perhaps just afloat. For some, this is what keeps us young; for others, it brings gray hair. These people need some relief. A vacation. A long weekend. As you may know, families demand more and more time as the kids get into Little League, Scouts, soccer, and other social activities. In short, delegation to the lead carpenter allows a contractor time to enjoy life outside the company.

WHO DOESN'T NEED A LEAD CARPENTER SYSTEM?

One question I am often asked in my lead carpenter seminars is: Will this system work with new home construction? The answer depends on several factors. One is the size of the house. Just like the size of a remodel, the size of the project will determine whether the lead carpenter is really a lead carpenter or a project manager. The difference lies in how much he uses any tools other than a calculator or tape measure. Many new home projects are large enough to warrant a full-time superintendent rather than a lead carpenter. If the project is small enough that a carpenter can work on the site and manage the job, the system will work.

The second factor that might preclude the lead carpenter system in new home building is the source of labor. If a company is building a house primarily with its own labor (that is, the company has the carpenters on the payroll), then this system will work. However, if the company decides to subcontract out all the labor and simply be the general contractor, the system does not fit, mainly because there won't be a carpenter employed by the company on the job from start to finish. Because the labor on the job would be subcontractors that come and go, the benefit of continuity is lost and must be supplied by a site superintendent or a project manager. This person fills management roles but does not provide the carpentry labor.

Another reason a lead carpenter system is not as critical in new home building is that a new home does not require the same constant supervision as a remodel. Therefore, it is difficult to justify the added cost of having a person in a management position who could be spending more time "producing." Indeed, the lead carpenter system does cost more to run, but in remodeling the expense makes sense, while in new home building it may not make sense.

Also, for smaller remodeling projects like siding replacement, window replacement, or other jobs that take only one to ten days to complete, you are better off with a modified lead carpenter system. For example, if the project is to replace kitchen cabinets and a countertop, the preliminary work-measuring, ordering, and scheduling-will fall into the hands of someone who sees the job eight weeks before the lead carpenter begins work. However, once the job starts, the lead carpenter will still be responsible for quality control, talking to the homeowner, keeping the site clean, and other job-site functions.

In Chapter One, I'll explain exactly how the system works, how the team members involved with a project interact with each other, and the best communication methods to make the lead carpenter system "sing."

Introduction | Table of Contents | Back Cover