ConstructConnect Blog

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.

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.

Is your construction firm planning to increase headcount in 2022? That could prove to be a difficult task. According to a recent survey by the Associated General Contractors of America, 88% of construction firms indicated they are experiencing project delays and worker shortages are the second leading cause (61%) cited behind longer lead times or shortages of materials (75%).

I hate to state the obvious, but if you are planning a new commercial construction project, your work has already begun. Break out your to-do checklist and prepare for what may not be as obvious or simple to calculate. These would be the costs, both planned and unpredictable, involved with bringing a commercial project to life. The steady uptick in costs from year to year has made access to materials, land, and labor a tough commodity. Detailed budget planning and strategy are necessary during preconstruction to bring the bottom line to light before your project hits rock bottom.

Construction companies are in business to do two things: build things and make a profit. So why do so many excel at the first thing but struggle to be profitable?

Networking is all about making new connections and building longstanding relationships. In the commercial construction industry being able to effectively network is a vital skill that as an individual could land you your next job or put your company on the path to your next big project.

“Change is inevitable,” as the old saying goes. On construction projects, a more appropriate statement might be that “change orders are inevitable.” If the mere thought of a change order makes you cringe, it may be time to take a look at tweaking your change order process.

Keeping your construction projects on schedule to meet your completion deadline is no easy task. Adverse weather, costly rework, unavailable resources, and subcontractor default are just a few of the things that can throw your timeline off course. Damages and penalties for not hitting your deadline can ruin your profit and hurt your construction company’s reputation.

As a contractor, when was the last time you reviewed the substantial completion terms in one of your contracts? Sure, you probably know the date set in the contract for work to substantially complete, barring any authorized extensions from justified delays, because that means it’s time to get paid the remainder of the contract amount along with any retainage that was withheld along the way.

All in all, 2021 was an okay year for the commercial construction industry. Overall construction spending was up, with residential construction put-in-place seeing an increase but nonresidential experiencing its second year of decline.