How to Run a Construction Company: Making Growth Happen

More than 1 million new residential buildings are built every year in the United States. This is a sure sign of confidence in the economy after the housing crisis of 2008.

As the owner of a construction company, this is exciting news. It means there are plenty of opportunities to secure construction contracts.

However, competition in the industry is very fierce. In your local area alone, there are probably tens of construction companies eyeing the same projects as you. What will put you ahead of the pack is how efficiently you run your company.

Read on to learn how to run a construction company and achieve growth.

Build a Skilled Team

Construction is a labor-intensive trade. On any given construction sites, you will find plumbers, roofers, electricians, project managers among others. In the office, there are accountants, cost estimators, surveyors, and others.

Regardless of the size of your firm, it’s vital to ensure it’s adequately staffed with skilled workers. You can outsource the recruitment task to a construction industry staffing agency,

As the company owner or manager, it’s your job to provide a conducive work environment for your employees. Compensate them competitively, and ensure they have the right safety gear at all times.

Only Take on Projects You Can Handle

There are large construction companies capable of taking on multiple multi-million projects. As a small company, however, it’s not financially wise to take on more jobs than you can handle.

Several projects require large financing, which your company might not have. Even if you can secure financing from banks, it’s not advisable to go into debt because of a job you’re yet to be paid. Things can go wrong down the road. The client, for instance, could go into bankruptcy before paying you.

Always conduct a proper project evaluation before submitting a bid. Do you have enough money and manpower to complete it within the given timeframe? Will you make decent profits once the project is complete?

Keep Tabs on Industry News and Trends

The last decade has seen massive technological innovations in the construction industry. Today, for instance, companies can use drone technology to monitor projects.

The ability of your company to adopt these innovations can mean the difference between failure and growth. The modern client wants to work with the most innovative firms.

Staying abreast of industry news and trends is the best way to ensure you’re aware of what’s happening and shaking. This way, you are able to roll along with the changes.

Learn from the Best

You don’t have to reinvent the wheel to achieve business growth. Oftentimes, and especially for construction companies, you just need to do what other companies are doing, but better.

This needs you to keep a watch on the best performing construction companies in your region. What are they doing that you aren’t? Explore their websites and see what stands out. The Hanson website, for example, is what every construction company website should look like. It’s clean, easy to navigate and clearly describes the products and services the firm offers.

That’s How to Run a Construction Company

A construction business has the potential to grow into a multi-million-dollar company. It’s your job to steer it to this kind of growth.

It might look difficult, but you just need to keep learning how to run a construction company. The more knowledge you have, the better equipped you’re to drive the company to success.

In the spirit of learning more, be sure to explore our business resources.