Building wall collapses

Oh I thought all that was about to collapse holy all right you guys today we're going to be bidding and repairing a construction job and there's four main components to a construction job and we're going to cover all of them from start to finish by the time you're done with this video you're going to learn more about bidding a construction job then you're ever going to be able to find out in any University course that they offer because I'm going to knowledge dump everything I have on you but let's check out what we're getting into right now like a solid day and a half of rain um on top of really frozen ground and uh this wall collapsed so there's a basement to this building and this bit of the basement wall collapsed that's kind of what was going on is obviously the ground's frozen insulated with a whole bunch of snow and all the rain that we got the other day obviously you know it needs to go somewhere and with the buildings they put off thermal heat which is residual heat coming out from the building so it'll keep the ground thawed for a couple of feet off of the building and the water went on down there couldn't go any further out so it went in oh man [Music] so maybe we put a couple screws right here and then strap it to that and you know we're extracted uh back over there yeah morning Sam good morning so yeah show up to your uh place of business and on a Monday morning and walk downstairs turn on the light and then you see this I mean that all that water had to go somewhere dude yeah no this was before it rained oh really yeah okay never mind it rains huh I take back everything I said outside yeah it wasn't raining yeah it wasn't the sidewalk was actually intact until we got all that rain yeah came right off but yeah it might be where we did okay I'll take what I want so the Brick's all tied up good yes good can't go anywhere yeah you want to say [Music] right we'll just have to uh first phase is try to get a bunch of this concrete off out of here and then this is the support holding up the floor and this end of the building that uh this is sitting against right now so might have to get crafty and start sledgehammering you know this that's away yeah and then if I can get a little dirt but the only problem is once you start moving any of this stuff and it pushes this into here we might want to just try to break this free and clear at least like to hear and that looks like the only spot they may have core filled I don't think they cornfield this looks like it is right here the one right there well I mean if that one's if that bits core filled I'll just cut it up on the other side of the core field and we can take this bit that's up against some plastic we're gonna be doing any type of cutting down here I want to get some plastic stapled in along this back edge here yeah yeah I don't think we're gonna do any cotton it's just going to be up there along the asphalt maybe I won't even cut that yet but no it'd be nice to get a little pull a little bit of get a little bit of room up top to work open it up a little bit so if we can get another three feet up there two three feet so it'd probably be best to start with kindness probably saw cut that start pulling that away I just don't want anything to come down and hit this but I don't like that that did shift since last time we were here that got pushed out more I don't you can see the side marks right here where it was actually scratching on the ground you can see what it definitely was yeah Oh I thought all that was about to collapse holy how the job gets done but before we start to break down how you bid this job we've got to go back to the basics and the basics are right here and it's this important that I put it on my fingers so that every time you guys do a job you should stick your hand in front of your face and look at your fingers because every single construction project is broke down into these four pillars and this specific order pillar number one is labor you always have to calculate your labor pillar number two is your materials you account for your materials pillar number three is your overhead and you notice why pillar number three is right here there's a very specific reason why pillar number three is this finger because this is the point this is the pillar that always bites you in the butt at the end of the season this is the pillar that takes down more small businesses than anybody else and that pillar is overhead and your next pillar is profit and you know and you can see exactly why profit is on this finger because it's number one this is the reason you're working and this is what's going to keep your doors open and allow you to get better guys better help and to do better work for your customers when you have enough profit you're not being selfish you're helping your customers you're helping your crew you're helping yourself have better peace of mind this is your number one pillar now take a close look do you see how your overhead is bigger than your profit that's because your overhead will eat your profit if your overhead is not accounted for and we're going to talk about the simplest easiest way to account for overhead before we're done with this video here's your four pillars remember them every time you go to bed it's worth repeating labor materials overhead profit that's your basic components of every construction site from there we take it even further and I'm going to do that for you in just a minute [Music] so how do you do your very first job with no experience you're going to guess yep I said it right you're going to guess you're going to do your best guess at what it's going to take to do that job and in a moment I'm going to break down this project exactly how we do that and yeah you're going to be nervous as a long tail cat in a room full of rocking chairs on that first project but after you do you after you take your best guess and you do your first job you're never going to guess again because you're going to job cost every project from that moment forward and yes I'm going to cover job costing as well because these are your keys to success don't use me as an example I use g m Outdoor Services as an example they're 20 some year old kids and now they are running a 5 to 10 million dollar company because they have gone through and job costed every single project they've ever done and we're going to tell you how to do the exact same thing they're doing there's no mystery behind this thing it's just buckling down and doing the work that it requires to be successful but now we got to get back to these four pillars because before you can job cost before you can break anything down you've got to understand these four pillars and this one is the one that we're going to be tackling here in just a minute [Music] thank you [Music] the easiest way to calculate overhead I found is on a day-to-day basis meaning I know exactly how much every single working day that I spend my company cost me so if you've been in business for a year congratulations you have all the information you need to do overhead if you've been in business one month congratulations you still have the information you need to calculate your overhead what you're going to Simply do with your overhead is you're going to remove the other things out of the component you're going to take your labor out of your statements you're going to take your materials out of your statements you're going to take your profit out of your statements and you're going to be left with this nasty little bugger here that bites everybody and so what you're going to do is you're going to look at how much expense you have over the course of last year minus your labor and materials and you're going to divide that by how many actual days you worked this is an important number to remember it's not how many days in a year you've worked it's how how many actual days you physically spend out on a job site and that number will be your overhead on a day-to-day basis now that doesn't work for you Google how to calculate overhead because there's tons of information on how to quickly and simply break down overhead into whatever way works the best for you guys but let's do a quick overhead calculation here in just a second [Music] push it down last year my company spent five hundred thousand dollars on fuel on marketing on insurance on taxes on t-shirts on food on tires on oil on blah blah blah blah blah blah blah blah blah it's everything minus labor and materials my company spent five hundred thousand dollars we worked 256 days actual work on job sites you divide 500 000 by 256 and what you get is one thousand nine hundred and fifty three dollars that's how much money my company cost me every single day to own so this is the most critical element that I can Hammer into you guys is and share with you is the fact that if I go over on the job by one single day it's not the extra labor that it cost me it cost me one thousand nine hundred and fifty three dollars so you can see Justin overhead how going over on a job by just one or two days can cost you thousands of dollars that you may not have calculated into and you may just be analyzing your labor and forgetting all about this one and this is the one that's eating away at this one your overhead eats your profits calculate this dial this in and you're going to be way far ahead of anybody else that you're going up against and by the way if a video like this helps you guys out a hell yeah in the comments down below goes a long way and lets me know I'm on the right track and the whole point to this video is the fact that some of you guys have been coming up to me at conventions and telling me thank you for helping me get my business started you guys are all saying the same thing that you watched all of my early videos and it's how you based bidding your jobs from that point forward and so I'm going to try to incorporate some of that back into my channel to keep you guys going and if that helps you out let me know in the comments below but let's do this thing [Music] now in this very specific case you can see I've got two excavators on this job site one skid loader but I own like four or five excavators and like nine skid loaders and a bunch of other equipment so how do I expense all of that equipment that isn't on this job against this job how does that even work you expense it against this job you expect and if you have multiple jobs then that daily overhead number 1953 dollars is how much money your entire organization has to make on a day today basis so if by some miracle you're able to allocate and you're able to run 1953 jobs simultaneously that means every single one of your projects only has to make one dollar per day to break even but if you only won run one job site then that one job site has to make that much money per day to break even if it's two job sites you run well you just simply divide your overhead by two and that's 976 dollars that's how much per job site per day that crew is either costing you or has to make money to break even so it's very you gotta understand exactly how to allocate that overhead but now let's actually break this job down how we bid this very particular job and yeah let's just do that good yeah in the whale all day yesterday [Music] do I you want to take a chunk out of the middle kind of here I mean you could you could get down you could get her down in there and drag it this way the first time you do a project like this you're going to guess and then you're never going to guess again because of job costing if you get a job once you put a bid together if you get that project you need to job cost which means you actually need to take a stopwatch and calculate precisely everything that you do on that job because what you do on that job sets the stage for the next job the next job and every job thereafter because what you're doing is you're calculating data for yourself for your future estimates so you are legitimately going to take a stopwatch and you are going to click it and keep track of exactly how many man hours you did on that job you're going to calculate exactly how many hours you put on an excavator how many hours you put on a backhoe how many hours you put on your skid loader you're also going to calculate exactly how many hours your dump truck was on the job site you're going to calculate how many hours that it traveled going down the road how much fuel that truck burned you're going to keep track of how many dumps it took to remove it and then you're going to keep track of every single expense associated with that job because that one single job sets up the blueprint for how you're going to bid all of your future work when you start to calculate data on every single one of your jobs it tightens up your numbers for future projects the Beauty and the curse of what we do as contractors is no two jobs are ever alike but we can calculate data and use bits and pieces from past projects to help us figure out our future projects so when we look at a job like this we start to break down exactly how we do it and on a project like this we try to make it into bite-sized chunks how do you eat an elephant one bite at a time and I'm gonna teach you in just a moment how we break down a job into bite-sized chunks so we can take this monster elephant in the room and make it digestible and understandable so we break this down into bite-sized chunks and the first bite-sized chunk is removing clean just cleaning up the failed wall the second bite size trunk is replacing the re the wall that failed the third bite-sized chunk is backfilling compacting and putting the dirt back so now instead of having one big monstrous thing that we're trying to understand we've got three little components that we can then put together at the end of the day and one of the things I Gotta Throw in here to make sure I get answered and I planned on doing it later on and the video is I showed you how to take this son of a duck and turn it into a day-to-day understandable number do the exact same thing with this one Whatever you want your profits to be that's how much money you need to understand you should make in profits on a per day-to-day basis so this one and this one go hand in hand these two oh look at that there they're like that but sometimes they don't get along alright so next up let's break this thing down and show you what we did so let's break down chunk number one and before we actually go through these numbers line item per line item I need you to understand these aren't the real numbers I'm not here to go to the back of the book and cheat and give you the actual answers if I spoon feed you little baby birds the answers what happens is you don't learn it and the most important thing you need to do is learn and understand not be given the answers what I am going to do is I'm going to give you the guideline right now so chunk number one clean up this is how we break this down labor how many hours is a guy going to be shoveling picking up dirt doing laboring if we calculated at 76 hours again this is just a guideline I'm not giving you the actual bid labor 76 hours at 65 dollars an hour that's four thousand nine hundred and forty dollars on this job site the excavator runs 27 hours at 250 dollars an hour that's six thousand seven hundred and fifty dollars the dump truck is 11 hours at a hundred and seventy five dollars an hour that's one thousand nine hundred and twenty five dollars the dump fee for the materials we had three loads calculated in it if it cost us two hundred and fifty dollars per load that's seven hundred and fifty dollars in dump fees and we go through and we just look at what does it take for chunk number one next up we're gonna look at chunk number two but we're not done with chunk number one yet Chuck number one with those main components added together costs us 14 365 dollars on top of Chunk number one we're gonna take these two bad boys and add them in now if we calculate we need three days to do chunk number one that's the cleanup portion of it then we take our overhead on a day to day and we add that into our bid and we take how much profit we want on a day to day and we add that into to our bid and that becomes our final number for chunk number one now you have to add in how many labor hours you think and what you want to get per hour how many excavator hours you want to get and etc etc again those aren't the actual numbers that we had calculated but that is the simplest form that I can teach you guys on how to break this down so that when you start to look at a job you can understand where do these numbers come from we don't throw a number at a dart board we actually have a little bit of a strategy and we're going to take that into chunk number two and chunk number three next so chunk number two is repairing and replacing the failed painting wall That's the actual installation of a new foundation wall and we don't do that in-house so we hire a subcontractor now here's unfortunate truth some contractor was camera shy didn't want to be on film and we completely respect that so you don't get to see the installation process but that doesn't have any impact or effect of what we're doing talking about the numbers now when you hire us up contractor as the prime contractor or the general contractor if you have hired that subcontractor you can typically add in the industry standard is 10 onto their bid so if their bid is ten thousand dollars it's okay for you to add ten percent onto that bid and turn that in to your customer that's what the industry standard says and the reason that that's okay is because you are going to be taking payment for from the for that subcontractor from the customer you've got to allocate the funds you've got to be financially prepared to be able to pay that subcontractor to wait to get paid in the first place you are also taking partial responsibility for the work that that subcontractor does because it falls underneath your umbrella and there's it's not just handing something over and having it be in your customers responsibility the work of that subcontractor falls under your responsibility and that gives us as contractors the right to take ten percent and that's why it's the industry standard a lot of times what happens is you contractors will just give your subcontractors bid to your customer not take anything in between and you've got to realize you have a certain level of responsibility in between there and sometimes that goes super smooth and it doesn't cost you a dime but sometimes it doesn't go so smooth and your subcontractors don't work out quite as well and things don't go the way you want it to and that can bite you in the butt especially if you have nothing baked into their proposal to save your butt so make sure you put that 10 percent in there remember profits are your friend profits help make your jobs go smooth your life easier allowing you to pay pay your own people better to pay yourself better to be more relaxed to do a better job for your customers and to treat your subcontractors better this is not an evil thing this is what makes things go smooth oh and on a side note the wall that was there that failed we found out didn't have any core filling at all they thought there was one section that had core filling on that entire thing but they were wrong once we started to dig it out and remove it there was nothing there but now let's break down chunk three and wrap this video up [Music] all right so we got some back filling going on today sorry I didn't get the first couple loads in there because uh distracted so you're doing six to eight inch lifts avoiding that line there it's definitely around the actual blocked wall see they shorted up in there and waterproofed it about a foot maybe 14 inches away from there wall doesn't cave in and looks a lot different than when we first got out here…