Why is one construction company successful and a similar company struggling? How do we attain success? Malcolm Forbes said even a failure is a success if we learn from it.
Certified construction business coach George Hedley is a construction manager, author, general contractor, and real estate developer. His article Set Your Sights on Success shares top construction company leaders’ tips for success.
4 Tips for Construction Company Success
Hedley asked top contractors what they do to make their construction companies successful. Their answers provide can serve as a guide for construction business managers.
1. Enforce the Right Systems
Most construction businesses have processes, but they are often ignored. Hedley says protocols must:
- Define each employee’s level of authority
- Identify supervisory/management tiers
- Include a description of the expected results
- Require performance reviews/compliance checkpoints
…and followed. Construction leaders recommend:
- Don’t wait for problems or people to come to you. Seek them out; ask questions.
- Make sure everyone knows what everyone is supposed to do.
2. Know the Right Numbers
Hedley says wise contractors keep their eyes on the ball. They know the score on every job, project supervisor, equipment, and stakeholder.
- Continuously look at financials in-depth. Ensure they are complete and accurate.
- Review financials monthly.
- Track/update project numbers every week to stay on-budget and on-schedule.
3. Pursue the Right Clients
Some contractors are chasing cheap work. Target the right clients and build strong relationships with them.
- Focus on projects you know will be successful. This eliminates learning curves and new project expenses.
- Transparency builds trust. Show clients everything; the bidding process, estimates, project management, supervision, and scheduling. Invite them to meetings and open the books to share expenses.
4. Recruit the Right People
“Stop tolerating poor performers and build a culture of winning,” says Hedley.
- Foster a culture of transparency and communication.
- Hire good people with good attitudes and good work ethics. Offer above-market compensation.
- Invest in culture.
- Proactively touch base with your people. Ensure they are fully engaged with the entire company, managers, subcontractors, and customers.
- Take better care of what you have before you go out and get more.
Top contractors know success depends on investing in the right processes, data, customers, and employees. The building permit experts at Construction Monitor know the right marketing strategies can help you gain clients. Ask us about customized data analytics.