This Article Will Focus On helping you understand the true meaning of some of the terms that are used in construction. Since this is a family friendly website I have purposefully left out some of the more colorful language and kept to the basics of construction definitions.
This Collection Has been put together by Randal DeHart based upon his experience as a contractor and outsourced contractors bookkeeping services provider to contractors all across the USA and I sincerely trust you will find value in it.
You May Experience some “Ah-Ha Moments” in the near and distant future when you least expect it because you will read or hear a term being used and suddenly you will get it, the light bulb in your head will turn on and something new will make sense as a result of this list.
Have Fun With This List Of Construction Definitions and feel free to share it with 10,000 of your closest friends or more as you wish.
*** ALL COMMENTS IN RED ARE THE THOUGHTS OF THE EDITOR. THEY ARE IN NO WAY A REFLECTION OF RANDAL’S THOUGHTS, INNER THOUGHTS MAYBE. RANDAL IS A GENTLEMAN HOWEVER I’VE BEEN IN THE PLUMBING BUSINESS FOR 21 YEARS AND I THINK WE’VE HEARD A FEW SWEAR WORDS IN OUR WORKING LIVES. I FIGURE SOME THINGS WILL BE EASIER TO UNDERSTAND
Construction Definitions From P to Z
11 Steps To Contractor Success – A program designed by Randal DeHart, PMP “The Contractors Accountant” for plumbing contractors, general contractors, trade contractors, home builders, commercial tenant improvement contractors and handyman contractors to make more money faster Click here to download diagram
Peter Principle – Promoting a construction journeyman / technician to working Project Manager or working foreman without formal training which leads to Construction Train Wrecks. You know companies used to have time and money to bring in a star and train them however, now it’s sink or swim.
Pioneer – Contractor with flaming arrows in the back from asking the bookkeeper for accurate reports
Plans – Drawings showing what the finished product would look like if it were built in Heaven.
PMP – Project Management Professional. Someone who has been trained in managing construction projects and is skilled in planning and communication.
Process – System to produce predicable quality results and reap dividends for the owners
Process Development – Do it, Document it, and Delegate it
Project Manager – The conductor of an orchestra in which every musician is in a different union
Purpose of Firm – Acquire clients and satisfy their needs
Rain Maker – The person in the contractors firm that acquires new clients
Retainage – Method used to help finance the construction project and reduce contractor’s profit. OMG no truer words. A true partnership is when your GC tries to negotiate the retention at the end of the job in the “spirit of cooperation” of course. So you give them your best number at the beginning and you give them profit back at the end. It’s a win win…..for them.
Retired – Means you got tired of them, or they got tired of you
Rich – Income exceeds outgo
ROI – Risk of Incarceration because of bad bookkeeping. That’s funny and not funny.
Salesperson – Amateur sorter
Sales Process – Documented system for acquiring new clients for the Firm
Signer – Someone other than the business owners with access to your bank account to pay bills or make tax payments….NEVER EVER A GOOD IDEA because everyone runs short of cash and the temptation to “Borrow” with the “Intention” of putting it back is having a high calorie snack with the intention of exercising later to get rid of it!
Shoe Salesman Contractor – Someone skilled in servicing, repairing and being a handyman for houses, commercial buildings and other structures.
Sorter – Professional Rain Maker sorts for clients instead of selling to tire kickers
Strike – An effort to increase egg production by strangling the chicken
Success – A few simple disciplines practiced everyday
Warranty Work – The never-ending project
Wealth – Not working because you have enough cash to live the rest of your life
Wealth Prevention Tool – Bad Bookkeepers and Cheap Bookkeepers who do everything possible to make certain business owners a paid the same or less than the Bad Bookkeeper
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About The Author:
Randal DeHart, PMP, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington, www.FastEasyAccounting.Com He is the leading expert in outsourced construction bookkeeping and accounting services for small construction companies across the USA. He is experienced as a Plumbing Contractor, General Contractor, Project Management Professional, Construction Accountant, Intuit ProAdvisor, QuickBooks For Contractors Expert and Xero Accounting Specialist, Bill.Com Guru and Tsheets ProAdvisor. Follow Randal on Google+
I leave you with this heartfelt blessing – “You are the right person in the right place and your time is now. All of the time and effort, blood, sweat and tears you shed were for your own good and meant to make you strong and resilient and prepare you for the opportunities that await you. Do your best and expect great things to come your way!”
Randal L. DeHart, PMP, QPA