This is part of the Interview Method above so make sure to include Value Engineering and your expertise. If you have Alternates or want to suggest using lower cost materials, or want to separate certain costs outside of your base bid, you can use a section for “Alternates”. Check it out. The GC was having trouble figuring out the required space for the duct to determine the final ceiling heights. They are likely to pay a little bit more than the little better. This doesn’t work as well over the phone, and definitely not through email. You are going to need a good Project Manager, Superintendent, Foreman, Accountant/Book Keeper. Ask to meet the Owner or Principal. However, make sure that you offer a healthy balance of products of services. We’ve estimated or built over 3,000 projects, and I’ve never seen a perfect set of drawings. But, before you get too far involved, here are 15 ways that you can build a contracting business that’s going to last or grow the contracting business you already own. A strong social media presence is a good idea as well. Share. By hiring people who are smarter and more talented than you are, you can trust them to handle any assignment on their without your supervision. If you are a GC, most of your required staff will be in your office helping you manage. 2. As you start growing your construction company, you are going to find it very difficult to finance the projects. At the Town, City, County, State, Federal, and Military levels. So you need to convey this expertise to them. We’ve seen material prices tend to be pretty close throughout the nation, but labor fluctuate widely. 1. We can use a better type of trim. This 3-month calendar details exactly what contractors need to do to grow their business the right way. Marketing your construction business business should be one of your priorities when starting out, so be sure to dedicate the necessary time and money to doing it right. 7 Ways to Grow Your Texas Construction Business One of the biggest challenges to running a construction business is figuring out how to expand. It is the engine that drives your entire company. I saw a detail that shows an installation method that can be improved. Whatever you bid today, you’ll see the results 3-6 months from now. For example, if you're doing electrical work and notice that a pipe has a minor leak that you can easily repair, you can fix the pipe instead of having the customer call a plumber. Means you have to bid 11 jobs to get ONE. Even if you can’t get to the phone, you can probably call the customer back faster than waiting to get back to the office. We also helped Don Williams of Builder Solution Group in Arkansas win over 8 projects this year. They might be able to hire you directly. Unlike what strictly online businesses do, though, you should also focus on marketing your business locally. * *NOTE: The numbers used in this exercise are simple in nature and should be readily available even if your books are a mess. Always keep in mind that you want customers who deliver a solid ROI, instead of those who give you headaches. The audition is the bid you submit the sparks the interest because of price, and the interview method is the part where you offer special suggestions and value engineering for this project. Here’s a list of construction associations that you should consider joining. Want more help growing your construction business? For instance, you can ask some of your fellow contractors if they’ve had any experience with this customer in the past. When using Lead Generation Services, you’ll have access to a bunch of projects. They might say: PM/Owner: “We have a few other projects we were awarded that I want you take a look at…..”, Get in contact multiple ways and channels. Related: How the IRS Classifies Independent Contractors. Those issues can be doubly difficult to deal with when you're talking about growing a construction business. Consider branding your company with a professional logo, website, company shirts for you and your employees, high-quality business cards, professional looking templates, and brochures if you are in the residential market. Make it a point to collect their business cards, leads emails, etc. So take away the headache and pay the few hundred bucks a month that it costs to cover your employees. Our favorite strategy to get the best leads is going to start with using commercial and residential lead generation services. business.com Writer Jan 22, 2018. It can be difficult to let go of the reins when you’re the one who has been responsible for building the business over the years. You should have a General Superintendent that is responsible for the entire Field Operations including training. So the electricians need to cut up the wall and and then it has to be patched. After that, network in your community both online and offline by attending chamber of commerce meetings or answering questions in a local newspaper forum. After all, they already have some sort of system in place that they’re familiar with and believe is working just fine. Anything that might be confused or unclear, note it under your inclusions and exclusions. This only works to cover you and any officers of your company. And you aren’t perfect. Many larger projects are going to require bonding. Please revise your invoice to 25%”. We highly recommend you get yourself an in-house Estimator employee to help you with your estimating. Your construction business will grow if you bring it online and it has a dedicated social media page for business promotion. Next, scale the drawing and start measuring using the Linear Tool, Area Tool, or Count Tool. A credit line is designed to help you bridge the gap between the expenses from this months work, and the check that usually takes two months to get there. But this will get you access to government projects, multiple story building projects, and just high value projects in general. The solution is to hire an estimating firm like us to manage your construction takeoffs and estimates. This is the type of insurance that covers your Company from things caused directly by your construction project. Our team has worked with over 900 General Contractors, Developers, and Subcontractors, nationwide and we’ve seen what works and what doesn’t. As a matter of fact, I’ve developed a simple strategy to make you look like a hero even when submitting a change order. One of the ways contractors try to get around this is by using a Worker’s Compensation exemption. Train your team in the field and invest in them. Add to your template or spreadsheet so you can add your pricing. There is no order, but typically you want to build a lead system so you can estimate more jobs, eventually winning you more jobs, and then being fast and efficient in the construction portion of it. HOW TO GROW A PROFITABLE CONSTRUCTION BUSINESS – 4 KEY DISCIPLINES. Please download the PDF to view it: Download PDF. While expanding your construction firm can lead to increased profits if done right, it brings greater challenges than with other businesses. Adjust your business plan. If you send your bid to all the bidding general contractors, you instantly multiply your chances of winning because it guarantees that the winner will have your bid. Sometimes inspector show up on the job and noticed things that are not to code even though they were approved during the plan review phase. These are all real costs that often occur BEFORE a contract is signed. On the other hand, this fluidity can spell the end for other entrepreneurs who either struggle to break even or have gone bankrupt. USA.Gov – https://www.usa.gov/become-government-contractor. Your construction consulting and remodeling business isn't likely to become successful overnight. I recommend using the Title Page Method you just learned above and ask the Owner to bid their job. So make sure you cover your self. Remember: If you want to attract funding, you need to keep detailed and organized records and do your research on the best type of loan for your business based on your current needs. You don’t need to competitively bid, so you shouldn’t bill cheap. That means that you have to pay close attention to overhead expenses and be aware of any additional costs before you accept a job. Now, if you happen to be a do it yourself are, then here is the way to estimate your projects. But the rewards can be great. Home > Articles > Ultimate Guide to Grow Your Construction Business Growing a construction business IS EASY if you follow certain proven strategies. Bid Low with new clients to get in front of decision makers. The reality is this needs to take top priority above everything you do. Freelance contractors are a major contributor to the economy because they’re absolutely a necessity. Save my name, email, and website in this browser for the next time I comment. Do you have critical gaps in your coverage? However, you should pay attention to the fundamentals. 1. Is it really worth chasing down a couple of hundred bucks from a deadbeat customer who only asked for some minor contracting work?