Hiring Best Practice to Include in 2021 Capital Project Plans
If 2020 has taught us anything, it's that there's no such thing as predictability. This is most certainly true in the construction industry. In an instant, "business as usual" became a foreign concept. Firms across every sector had to adapt, adjust, and remain agile throughout the year to navigate a continually changing terrain.
Now that 2020 is almost behind us we're taking lessons learned into 2021. Our team recognized a significant change that clients and partners made around capital expenditure construction (CAPEX) projects. New thinking and planning is proving to be a positive shift.
Staff Augmentation is the Best Strategy for Capital Project Management
The shift in thinking is to augment staff, rather than hire or reassign, to 'load balance' resources. Even in the best of circumstances, deadlines and workloads for internal construction projects ebb and flow throughout the year. Demand for staff vacillates between zero to being stretched beyond capacity to meet an upcoming (or pending) need. Companies find themselves trying to balance between justifying employee costs and keeping them busy during slow times and struggling to find enough qualified staff to keep operations running when projects gear up.
An expert helps to meet and exceed the demanding objectives of CAPEX projects. These objectives go well beyond scope and include strict budget control, meeting tight deadlines and following detailed safety and operational plans. The project owner, typically an engineering or facilities manager, can't expect current staff to have the skills needed achieve all objectives.
A capital project execution expert is what they need.
Rather than hire new full-time staff or rely on an engineering design firm or contractor to provide this, they are turning to specialty firms like Perry Construction Management with capex construction management expertise. Doing so delivers several distinct benefits.
Augmenting staff with an outside capital project management expert delivers instant access to a wealth of industry insight and expertise. These individuals stay on top of the latest industry guidance and government regulations to ensure an efficient and compliant build from start to finish. They vet contractors for credentials and hold them accountable for the quality of work provided. They maintain the highest jobsite safety standards. They keep internal stakeholders up to date on progress.
Turning an Expense into an Investment
This strategy allows the company to reinvest working capital into the organization. Payroll expenses are considered a liability and reduce a company's value. Staff augmentation fees are considered an investment into the business, adding value. In this model, the cost of an expert to manage the capital project is treated the same as payments for materials, real estate, and equipment and, thus, increase the value of the company (according to generally accepted accounting principles (GAAP)).
Augmenting rather than hiring staff saves time, money and avoids many governmental requirements. Hiring employees is expensive. Keeping underutilized employees on staff can be a challenge to justify. Laying them off is an expensive, necessary evil when projects dry up. An unexpected bonus: the cashflow hit of staff augmentation can be less than hiring a full-time employee.
Augmenting staff with a capital project expert is a smart move for 2021. Construction management companies provide staffing services that save time and save money; reduce employee turnover; complete capital projects safely; and meet project specifications.
Perry Construction Management LLC. can Help Develop Your Staff Augmentation Strategy
We are capital project experts - the CAPEXperts. If you would like to discuss staff augmentation strategy further or need to find a resource for a capital project, we are happy to oblige. Fill out this form to set up a free consultation. We are a construction management company that specializes in capex construction project execution and food processing capex projects. Our newest focus area is the public sector and government construction project management.