ConstructConnect Blog

It’s safe to say that 2020 has pretty much been a dumpster fire of a year. The coronavirus pandemic and subsequent shelter-in-place and stay-at-home orders and other health precautions has significantly impacted how we work and live. This year I’ve found myself with, not necessarily more free time, but less things to do to occupy that time like going to the movies, traveling, attending sporting events and concerts, and hanging out with friends and family.

Thrive With the Information Advantage The speed, volume, and variety of digital data produced in the construction industry continue to advance as more technologies are used in the design, planning, and construction phases. The need for construction businesses to uncover insights from the vast universe of relevant project data is a mission-critical task for the industry to achieve better productivity and quality outcomes.

The construction industry is a dynamic and intricate sector that requires precise financial management to thrive in today's competitive landscape. Therefore, accurate accounting processes are not just necessary; they are a strategic advantage for construction companies looking to maximize profitability and comply with ever-evolving regulations.

As a general contractor, you have to be selective when it comes to the subcontractors you work with. You want to choose companies that have a dependable skilled workforce, strong management, financial stability, and can perform quality work to your company’s standards. To do this, you need to have an established subcontractor prequalification process in place. As with any business decision, picking subcontractors to work with requires you to do your due diligence. You should be prequalifying every subcontractor you’re considering working with to reduce risks that could impact your business, such as subcontractor default or substandard work.

Construction is a risky business. Each construction project is unique and comes with its own set of challenges and opportunities. Identifying and managing construction project risks can be tricky, but not impossible with careful planning and execution. When a risk turns into reality it can disrupt and derail a project which is why construction risk management is so important. In order to avoid disaster, you need to be able to properly assess, control, and monitor risks once they’ve been identified.

“To bid, or not to bid, that is the question.” It ain’t exactly Shakespeare, but the decision to bid on a project shouldn’t be taken lightly. You invest a great deal of time and resources into putting together a bid, so it’s important to make sure you are carefully identifying the right projects to go after. One way to do this is by conducting a thorough bid/no-bid analysis that meets your company’s goals and is in line with your long-term strategy.

All construction projects carry some level of risk. Being able to identify and manage risks requires skill, careful planning, and being able to make good decisions quickly. When risks become reality, they can be detrimental to the successful completion of your project. Properly managed risks can lead to higher profits, stronger relationships with clients, and the ability to grow and expand your business.

Effective communication is vital to the successful completion of any construction project. Good communication can improve teamwork and lead to better project collaboration. Poor communication can result in misunderstandings, delays, and issues down the road.

Is it time to grow your construction business? Are you looking to expand into new markets or territories? Growing your construction business, regardless of whether you're just starting out or have been in the industry for years, requires careful planning. In order to strategically scale up your operations, you must ensure you will have the resources (workers, equipment, etc.) to handle the additional work.

Construction estimating is one of the most challenging, yet important jobs in our industry. Profits are won or lost based on how accurate your construction estimates are and how closely they match your final project costs. Chances are one wrong estimate on a construction project that loses money won’t put you out of business, but a couple of unprofitable projects may have you closing the doors for good. Here’s a look at some of the most common construction estimating mistakes and how to prevent them.