5 Ways to Grow Your Construction Company
Most constructions professionals would agree, growing a construction company can be a very difficult and stressful task.
The type of work that construction companies do is inherently very difficult and requires the work of experts with many years of experience in the construction industry. For starters, every project is different – which makes creating a process or a service that can be easily replicated and scaled very difficult. The nature of the construction industry is also very risky – from putting together a budget and schedule and sticking to it, to facing constant changes in design, there are a lot of moving parts that make every project a challenge.
So how does a Construction Executive successfully handle day-to-day operations while continuing to drive long-term growth?
Here are 5 tips construction professionals can implement now to set themselves up for long-term success.
1. Networking & Lead Generation – Relationships are crucial to any company’s success. Building the right relationships can bring a tremendous amount of value. It can of course lead to more business, but more importantly, it can lead to more knowledge. You can learn something from every person you meet and every conversation you have.
Historically, face-to-face networking has always been the most effective kind of networking, but these days you can do a ton of networking online. In addition to social media, there are multiple industry groups and lead generation websites that help both general contractors and subcontractors find new clients and qualified projects in their respective areas. Networking is a powerful tool, but you must be consistent and proactive.
2. Bid More Projects – Bidding projects is the lifeblood of any construction business and crucial to facilitating growth. Don’t be afraid to send out more bids and take on more work at once.
One of the biggest mistakes contractors make is only bidding on new projects when they start to wrap up old projects. If you want to grow, you must first start with a consistent flow of new projects coming in. Don’t hesitate to “bite off more than you can chew”.
Utilizing a Quantity Takeoff Service like Max Takeoffs will enable you to cost-effectively streamline your bidding process so you can bid and win more projects. Quantity takeoffs are the most significant and time-consuming step in putting together a construction cost estimate. Getting an accurate and detailed quantity takeoff can be the difference between a winning bid and losing bid. Outsourcing that function helps you become much more efficient and bid more projects in less time.
It’s more cost-effective than hiring an in-house Estimator.
- Quick Tip – Track your production data in the field to nail down your production rates. This will reveal your true unit costs. Developing and understanding your material & labor unit costs will make producing estimates easier, quicker, and more accurate. It will also show you how efficient you are and where you need to make improvements.
3. Contract Support & Staff Augmentation – So now you’ve bid some more projects and have hopefully won a few more. Now it’s time to perform and you and your current team are at capacity with other projects. What should you do?
Utilizing subcontractors, independent contractors, labor staffing agencies, and other partners to augment your current staff while you take on more projects is a very effective way to immediately start taking on more work without having to go through the risky, expensive and time-consuming route of hiring and training new employees. Utilizing contract support gives you the flexibility to plug-and-play as needed.
Hiring new employees requires a large up-front investment and can also be very time-consuming. It’s ok to augment your current staff with contract support. It also enables you and your current staff to focus on more important tasks.
Self-performing every function of your business process is primitive.
4. Dedicate and Delegate – Dedicate your time to the most important aspects of your business. Delegate the rest. We’ve all heard the phrase “If you want something done right, do it yourself”. Although this is unfortunately true in many cases, it doesn’t build a good foundation for long-term growth. Hiring good people and partnering with the right companies can be a key factor in determining your success.
- Quick Tip – Creating standard operating procedures and training manuals are also a good way to ensure quality, consistency, and standardization.
5. Keep your Organization Lean – Staying organized and utilizing technology will help you be more efficient. Project Management softwares and other Construction Technology (ConTech) applications create an incredible amount of value and help reduce overhead in the long run.
Growing a construction company requires a solid foundation that consists of a great team and a great process. It’s not an easy task, but nobody ever became a builder because it’s easy.
Max Takeoffs is the #1 Quantity Takeoff Service for the Construction industry. Partner with us for accurate and affordable quantity takeoffs.
Contact Us today for more information.