7 Construction Business Management Tips


Managing a construction business is not an easy task as it requires not only expertise in the building process but also knowledge of common business practices and regional economic conditions, along with excellent motivational, organizational, and financial skills.

In the US alone, construction is a $1.3 trillion industry, so it’s no wonder that competition is fierce.

In order to help you stand out from the crowd and continue growing, we’ve highlighted 7 ways you can manage your construction business.

1.  Create a Killer Construction Proposal

A construction proposal is one of the most important sales and marketing tools available to a construction company. A good construction proposal should persuade a client to give you the job but it should also be able to safeguard your company and your best interests.

A construction project has to be right from the very beginning, which is why you’ll need a good construction proposal template. A good template will serve as a guide in creating an attention-grabbing construction proposal that contains crucial information such as project summary, project timetable, as well as cost.

2.  Plan Your Projects Ahead

Emergencies are not unusual in the construction business, making it difficult to properly order materials and schedule the correct crews. For this reason, you should make sure to plan projects at least two weeks ahead.

In addition, you should have a detailed construction schedule for the entire project that will allow you to check the progress periodically and react on time if there are any major delays.

3.  Hire the Right Employees

Investing in your employees always pays off as they are the people who are going to be running your business. The basic office team consists of a project manager, office manager, accountant, estimator, and purchaser.

Smaller construction companies can have the same person working on several responsibilities. However, it is important that all of these positions are assigned to people other than the business owner as each one requires time and focus.

Business owners, on their part, should be ready to delegate tasks in order to ensure good quality of work. Give people responsibility and show that you trust them, and you’ll be surprised at how well they perform.

4.  Set Up a Great Sales Team

In the construction business, you need someone responsible to find new clients and bring in money. Without a dedicated sales plan and an effective sales team, your company won’t be able to generate enough revenue to keep the doors open.

A good sales team can make or break your construction company. The construction industry is built on relationships and if the business owner acts as the only salesperson for their company, the number of potential projects will be extremely limited. That’s why the best way to promote a construction company is by building a team of experienced salespeople.

5.  Develop a Solid Marketing Strategy

Marketing is one of the most important tools in order for a construction company to operate at its full potential. No matter how good your business is, without the right marketing strategy, it won’t reach the right audience.

Some of the competitive advantages you will get from having a solid marketing strategy in place include targeting your customer base with ads and promotions in order to help them remember your brand over competitors, researching and entering new markets, bringing new clients and turning existing ones into repeat customers, and so on.

6.  Rely on Technology and Automation

The construction industry is constantly changing and evolving. For instance, did you know that more than 35% of construction companies are experimenting with drones?!

In addition, software companies are constantly launching various types of software solutions that can greatly benefit your company. Consider investing in a CRM system, accounting software, construction management software (preferably with change order management), estimating software, or requisitions management software.

7.  Offer Outstanding Customer Service

Construction businesses are unique because they provide services that result in physical products. There is nothing worse than a job that isn’t on schedule or an uncompleted job, which makes good communication a foundation for customer service.

In construction, customer service means meeting deadlines, carefully handling any disputes, assisting your clients with anything they may need; in other words, doing everything you can to turn them into long-term happy customers.

Final Thoughts

Managing a construction business can be very challenging but hopefully, these 7 tips and strategies will help you set up your company for success.


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