Renzo Construction

Documentation of Key Decisions

2013.1
Overall, we were pleased with the performance of our staff for this first quarter.
Employees were unanimously committed and producing superior quality of work. We decided it
would be best to watch closely those few who displayed an Average performance. We also
agreed to leverage Petes availability for the impending workload.
Browsing our progress reports, we noted that the Office-med rise sector seemed to be the
majority of our current projects. The variability of their profit margins concerned us at first.
However, due to their positive tentative forecast, we decided to continue to pursue this sector.
The Warehouse project also caught our eye since it had the second highest profit to date. We
agreed to bid on all future Warehouse construction.
2013.2
The number of bids won in this quarter shocked us. We were not anticipating this result.
The incoming workload worried us greatly and ignited a lengthy debate on future strategy. First
of all, we needed to consider hiring new people in order to manage these new projects. Secondly,
we needed to start bidding less or with a higher mark-up to remove the risk of taking on too
many projects or at least make more profit.
2013.3
In this quarter we decided to raise the general level of sub-contracting in order to reduce
some of the workload on our team members. We also hired three new employees. Swann, a
young pragmatic with a four-year degree, was hired due to his low salary requests and basic level
of field engineer experience. Bridglal was hired at the same time to watch over Swann and help
train him since she had vastly more experience in this field. Lastly, Whalley, a man of many
trades, was hired for his varying experience to fill in any gaps left in the Staff Allocation chart.
2013.4
For the first time in our history we had an employee with weak commitment, Abel. Not
wanting his infectious distaste for the company to spread, we decided to fire Abel and replace
him with a new superintendent with a similar level of experience.
2014.1
After losing every bid in this quarter, we decided it was time to revise our current bidding
strategy again. Our mark-ups during this quarter were way too high compared to our
competitors. To win future bids, we needed to start bidding lower.

Renzo Construction

Documentation of Key Decisions

2014.1 (cont.)
Our net profit also suffered greatly in this period. Thus, we decided to lower salaries of
all new employees from their current rate to the typical or asking rate, based on which was
lower, found on their resumes. This would reduce our Accounts Payable and hopefully increase
Net Profits at the end of the year.
Since our team of superintendents had by far the most intensive workload for this quarter,
we also decided to hire Maskell. The primary reason for this decision was his experience in
projects that were quite complex. Another attractive quality was his experience as both a field
engineer and a superintendent.
2014.2
After recognizing that there is actually a penalty for projects not finished on time, we
started to seriously reconsider the amount of projects we could take on. Thus, we set a goal to bid
primarily on projects with low complexity.
Our bids in this quarter were also way off the mark. We were bidding close to 2.5%
under the competitors mark-up, which is a huge loss for our company, especially on larger
projects.
2014.3
From the Staff Progress Report, we recognized that the largest complaint among our
employees was their salary. With our Net Profit To Date already dangerously low and the ratio
of Accounts Receivable to Accounts Payable reaching close to 1, we decided it was impossible
to raise salaries at this time. Though, if signs of improvement were to appear in the near future,
we would certainly want to settle this complaint as soon as possible.
2014.4
By teaming our newer employees with the more experienced team members in this
quarter, we achieved excellent work output with minimal complaints about load. We decided we
would like to extend this strategy one more quarter before having these employees work entirely
on their own.
With a final Net Profit value that was not only positive but sizeable compared to previous
losses, we are hopeful that, despite rough times, our strategy will pull through for Renzo
Construction in the end.