We are making positive changes that will impact our industry for generations. We are grooming younger students for construction industry apprenticeships. Technology continues to dominate our development.
It’s a good time to be a construction industry business owner.
A construction business is still, after all is said a done, a business. Here are 7 contractor tips* to help you get a better idea of how to succeed in the construction contracting industry.
- Create financial relationships – Get prequalified to “establish surety credit for future projects and growth,” says Liberty Mutual. Make sure you have the right insurance and permits for every job. Look for partners that include:
- Construction industry CPA
- Knowledgeable-in-construction surety company
- Surety bond producer
- Develop a business plan – What’s your mission? Your vision? You’ll return to your business plan when times are tough. It serves as a reminder of what you want to accomplish as a construction contractor.
- Document processes – In construction, there are many variables but implementing industry-best policies and procedures should be every contractor’s goal. Another reason to develop and document procedures: If a critical employee is unavailable, can someone step up to the plate and serve, using the documented processes for the job?
- Don’t hire the wrong people – It’s difficult to avoid hiring friends and relatives but unless they are qualified for the job’s responsibilities it’s a big mistake. If you do hire the wrong people, replace them asap.
- Equipment (lease or buy) – Operating expenses are different for every company so explore the benefits of leasing vs. buying equipment. Monthly payments are one thing; maintenance and repair are another.
- Invest in technology – Tracking finances with the right software is critical to your success. Software can keep billings and payments on schedule and provide a real-time look at your business. Estimating software is equally important. Your new business may not recover easily from a badly estimated project.
- Scrutinize every contract – If you don’t trust yourself to adequately understand a legal document, partner with someone who does. Conflict resolution, scope of work, and deliverable timelines must be clear to all parties.
For more information you can use, call 800.925.6085 (International/435.586.1205) or contact Construction Monitor today.
*This is not professional/legal advice; it is provided for information only.