NACC Case Study: Financial Rewards of Certification

NACC Certified Glazier

Bagatelos Architectural Glass Systems, Inc.

Sacramento, Calif.

Team

President & Founder: Nick Bagatelos

CEO/COO: Chris Bagatelos

VP Operations: Dave Ferret

Quality Control Manager: Chris Lade

About BAGS

Bagatelos Architectural Glass Systems, Inc. (BAGS) was founded in 1999 by Nick Bagatelos. One year later, his brother Chris joined the company. Over the past 20 years, BAGS has established itself as one of California’s leading union-based glazing subcontractors, providing design, engineering, fabrication, and installation, all while fostering innovation and meeting schedules and budgets. BAGS attained NACC certification in April 2018.

Introduction

Since attaining NACC certification in April 2018, Bagatelos Architectural Glass Systems, Inc. (BAGS) of Sacramento, California, has noticed quality and efficiency improvements that drive continued financial savings. The thriving company proves the wealth of opportunities inherent in third-party assessment.

In its 20-year history, BAGS has evolved from small glass replacement and storefront projects to major mid- and high-rises with clients that span healthcare, multi-family residential, commercial, and civic work.

The company has its own in-house engineering team, two 50,000-sf manufacturing plants (one is Net Zero), and demonstrated proficiencies in quality management and Lean methodology. Striving to become the premiere provider of glazing solutions in the state of California led BAGS to pursue NACC certification, and the process was at once eye-opening and financially rewarding.

About NACC

The North American Contractor Certification Program provides architectural glass and metal contractors with certification recognition through a professionally administered, third-party assessment, as a means of creating a baseline for competency and adherence to industry-accepted guidelines.

In his 2018 article published and presented at GlassCon Global 2018, “The Magic of Certification—Solving the Qualifications Dilemma,” author David Stutzman outlines advantages NACC certification brings to owners, designers, construction managers, and general contractors: simplified specifications and reduced risk. He laments that other construction industries should make qualifications so accessible.

NACC: Defining Practice

“Implementing the systems in NACC saved my company tens of thousands of dollars,” BAGS CEO/COO Chris Bagatelos enthusiastically described, only months after attaining certification.

The NACC Certification Program helps contractors create, implement, and improve aspects of their practices. By focusing on systems, procedures, and processes, it is the program’s mission to help contractors take proactive approaches to their projects.

According to Bagatelos, certification encouraged his company to better define its practices. “It’s been a critical improvement for us,” he explained. BAGS evaluated every process and business practice from dual lenses of quality and safety. Identifying best practices leads to efficiency and consequent cost savings.

The processes become more easily repeatable and safer. That affects the bottom line, especially when extrapolated to all of a company’s work. “If you can gain an efficiency, even a single digit, it translates into thousands of dollars of savings across the entire business.”

Monetizing Benefits

As contractors become more quality and safety conscious as a result of NACC certification, they will gain efficiencies that lead to increased financial savings. Safer workplaces naturally lead to safer employees. Workers compensation insurance premiums may be adjusted down to a lower modifier based on safe working conditions.

Quality Control

As a result of assessments during certification, BAGS opted to hire a full-time Quality Control Manager. Rather than look at the new salary as additional overhead expense, the company found that the oversight to produce a superior product and repeat efficient processes saves money in the long run. Especially on the manufacturing side of business, Bagatelos sees better defined practices producing a better quality product. “Ultimately, efficiencies lead to saving more money.”

He believes all aspects of certification correlate – quality, safety, and financial rewards. BAGS saves money with a lower insurance modifier, the BAGS workplace is safer with fewer injuries, and employees feel more confident and happier. Bagatelos also knows they are producing a quality product every time. “And that peace of mind leads to customer satisfaction as well as allowing me to sleep at night,” he adds.

Biggest Surprise

The biggest surprise of the NACC certification process was how it pointed out areas for improvement. Chris Bagatelos explained that his company was successful and operations were going well before certification. But the process added a layer of unexpected – and financially beneficial – refinement. “This process helped us see where we had flaws and weaknesses,” he said. “Certification not only saved us money, but made us a better company.”