Part 3 – By Ron Pestone
He then put a brown paper bag on my desk and said, “Bud before you open it I needed $40.00 bucks for gas.”
I looked at him, opened the bag and counted the money. The bag had ten thousand dollars in it.
While I was really happy with the bag of money I was happier how the job turned out. On a tight $297,000 we cleared almost $100,000 and that was without the $10,000 in the bag.
It really set me to thinking. Even with a good foreman and a hard working crew the job should never have made that kind of money. The reason it had turned out so well was Alex. So the question in my mind became can I take what happened here spread it throughout the company. Could I find enough Alexes to make it happen and more important could I find enough Alexes out in the world to do this on a grand scale. The answer was a resounding, NO! So I began to think, could I develop a system with an invisible Alex that could generate the same results.
I started to think about job costing in a way I had never thought of it before. No matter how many hours I thought about it I was always stuck with the fact that it had worked so well on the job because Alex was there and that the men had not only accepted him but had liked and trusted him. In short, for any system to work the men in the field would not only have to buy into the system they would have to trust it.
I started working on a system that would meet this basic criteria. I tried many different systems while a mechanical contractor with some measured success. When I moved on to the New York City School Construction Authority which was on a billion dollar plus a year building program I got to meet hundreds of contractors. Besides the business at hand we talked shop on all aspects of the business. It was amazing the amount of knowledge I gained on job costing in those years. All the while I continued to fine tune my system one that I thought could be the answer to every subcontractors dream.
Then I went back into the private sector where I was given the opportunity to develop a job costing system managing hundreds of millions of dollars of work. I took the best parts of their existing software systems and folded them into my job costing system and after hundreds of hours I implemented a Job Costing System. The system proved successful and I continued to fine tune it in the following years.
Today, the ELM Job Costing System does it all. It’s simple, effective and most importantly the field not only likes it, they trust it. It works if you are a small subcontractor or one that is billing hundreds of millions of dollars a years.
Now this might seem like a shameless plug and I guess it would be fair to say it is. This spring I have a book coming out called, THE BOOK OF ELM, COMMON SENSE SUBCONTRACTING WITH ELM JOB COSTING & MORE. It describes in detail with templates and practical step by step instructions the job costing system I have founded and used to successfully managed millions in work.
In this day and age there are all kinds of sales pitches promising remarkable results. Most are not worth the paper they are written on.
The only promise I make here is if you faithfully embrace the ELM Job Costing System you will get your own private Alex. And Alex delivers because in this business there is no better or bigger blessing than having your own private Alex.