SOLUTIONS TO COMMON CONCERNS

PROBLEM: Exceeds budget due to poor estimates, design changes, and payment delays. SOLUTION: Improve planning, manage changes, ensure timely payments. Shapcott & Lauber can assist our construction clients in mitigating cost overruns by providing expert guidance in accurate budgeting, effective change management, and streamlined payment processes, ultimately enhancing project efficiency and protecting profit margins.

PROBLEM: Projects often face delays from uncontrollable factors and management issues. SOLUTION: Leverage technology for scheduling and data accuracy. Shapcott & Lauber can help construction clients reduce project delays by providing expert consulting on best practices in project management, optimizing scheduling processes, and facilitating effective communication and conflict resolution to enhance overall project efficiency.

No construction project is without risk. We collaborate with clients to establish systems that identify, allocate, and mitigate risks throughout the entire project lifecycle, enabling them to minimize delays, avoid disruptions, and prevent costly disputes. Our comprehensive services include: Pre-Contract: Capital planning and budgeting Contract drafting, negotiation, and execution Strategic contract advice Development of policies and procedures Procurement guidance Program preparation and management Tender process oversight During Construction: Audit and due diligence services Budget management support Commercial placements Training in contractual and commercial practices Document control and retrieval systems Project controls administration With our expertise, you can navigate challenges confidently and ensure the success of your projects.

At Shapcott & Lauber, we help construction clients optimize their overhead absorption strategies by ensuring each profit center is effectively managed and held accountable for gross profit generation. We emphasize the importance of using a profit plan, rather than subjective standards, to determine how overhead is allocated across profit centers. Our approach aligns with the owner's strategic plan, which helps establish a competitive advantage by tailoring overhead absorption to the unique needs of each division. ​ We also focus on developing clear overhead allocation strategies that inform pricing decisions and support the growth of new divisions. By ensuring that financial statements are accurately stated and true costs are understood, we empower small businesses to differentiate themselves from competitors. Our guidance enables clients to implement effective strategies that elevate their operations to the next level, fostering sustainable growth and profitability.

This challenge suggests that while the expenses associated with materials, labor, and overhead are increasing, your revenue or profit margins are not growing accordingly. This may mean that project bids are becoming less profitable as competition drives prices down, or that unforeseen costs are eating into your budgets. On the other hand, you might be facing similar pressures, where the cost of supplies and labor is rising, yet you are unable to charge more for your services due to fixed contracts or competitive market forces. Overall, these scenarios creates a financial strain, making it difficult for both GCs and subcontractors to maintain healthy profit margins and potentially jeopardizing their long-term sustainability in the market. By leveraging the expertise of Shapcott & Lauber, we help construction firms mitigate the impacts of rising costs and stagnant profits, positioning them for greater financial stability and growth.

To ensure efficient business operations and optimal financial performance, our experts collaborate closely with management to develop and implement strategies that harness data and innovative technologies for sustainable transformation. We focus on balancing both short- and long-term objectives to drive success. Our comprehensive services include: Cash Flow Optimization Cash Liquidity and Working Capital Management Margin Improvement and Cost Reduction Programs Performance Enhancement Process and Systems Improvement Commercial Modeling: Financial Forecasting Operational Analysis Options Analysis Strategic Planning Interim Management Communications: Change Management Stakeholder Engagement With our expertise, we can help you navigate these complexities, ensuring that your business and projects not only meet financial targets but also achieve lasting success. Let us partner with you to unlock your company's full potential.

In times of stress and distress, our team offers unparalleled expertise, experience, and technical capabilities to navigate challenging situations effectively. We deliver tailored advice that addresses the specific circumstances and challenges facing your business, always prioritizing the best possible outcomes for stakeholders. Our comprehensive services include: Independent Business Reviews Performance and Profitability Improvement Safe Harbour Advisory Secured Creditor Advisory Informal Restructuring Turnaround Management With our dedicated support, we can help you implement effective strategies to stabilize your business and pave the way for recovery, ensuring that you emerge stronger and more resilient. Let us partner with you to achieve the best results during these critical times.

At Shapcott & Lauber, we help construction clients understand the importance of managing retainage effectively. Retainage is the portion of payment that clients withhold until a project is completed to ensure that all work meets their standards. This can impact cash flow, as it means that contractors don’t receive the full payment until the project is finished. ​ By optimizing their collections process and reducing the time it takes to release retainage, our clients can improve their cash flow. We assist them in setting clear standards for retaining payments and ensuring that they communicate effectively with clients about the status of the project. This way, our clients can access funds more quickly, allowing them to reinvest in their business and manage expenses better, ultimately boosting profitability.

These challenges highlights critical issues that owners face in the construction industry. When employees feel undervalued, overworked, or unsupported, their morale can decline. This can lead to a lack of enthusiasm for their work, decreased productivity, and a negative workplace atmosphere. Disengaged employees are less likely to take initiative or contribute positively to their teams. They may feel disconnected from the company’s goals, resulting in minimal effort and a lack of commitment to project success. High turnover is particularly detrimental, where skilled labor is already in short supply. Frequent turnover can disrupt project continuity, lead to increased training costs, and result in the loss of institutional knowledge. By leveraging our years of expertise in construction management, Shapcott & Lauber can help organizations cultivate a positive work environment, enhance employee engagement, and ultimately reduce turnover. Our comprehensive approach can lead to improved team cohesion, productivity, and overall project success within your organization.

PROBLEM: Goals unmet due to improper planning, forecasting, and budget issues. SOLUTION: Set realistic goals, communicate effectively, and plan finances carefully. Shapcott & Lauber can assist construction clients by implementing procedures that will enhance their planning and forecasting processes to set achievable short-term objectives, ensuring realistic budgeting, and facilitating clear communication with stakeholders to proactively address potential issues and keep projects on track.

Project completion issues leads to customer dissatisfaction" it's particularly relevant for general contractors (GCs) and subcontractors in several ways: Delays, Quality of work, Communication breakdowns, Budget overruns Change orders . . . . . . touching on the most important ones. Addressing project completion issues is essential for maintaining customer satisfaction. Ensuring timely, high-quality work, effective communication, and transparent budgeting can help mitigate risks of dissatisfaction, fostering stronger client relationships and encouraging repeat business. Shapcott & Lauber's services and years of experience helps to enhance project delivery, improve customer satisfaction, and strengthen client relationships, ultimately leading to more successful project outcomes.

PROBLEM: Payment delays disrupt the ability to pay for labor and materials. SOLUTION: Implement modern payment systems and manage finances efficiently. Shapcott & Lauber helps facilitate the implementation of (CMS) "construction management software" designed to streamline accounting, project management, and operational processes for construction companies. It provides features such as job costing, payroll management, project tracking, and financial reporting, helping firms enhance efficiency, improve accuracy, and gain better insights into their financial and project performance and cash flow.