Not “If” – Rather “When” Something Goes Wrong on Your Construction Site

 

 

If you’re a construction contractor who hasn’t experienced anything go wrong on one of your projects, you’re either brand new to the biz or you’re not being honest with yourself. Things go wrong.

The wrong size gizmos were ordered. Your top hand falls and is injured. The weather is playing havoc with the job site. Your supplier is totally out of the widgets you must have today (and won’t be able to get them in anytime soon.) Change orders are raining down on you.

Turns out a mistake was made

For many mistakes made on a construction job what is often required is stepping to the plate and explaining any mistakes or delays to your customer. This gives you the added advantage of being able to tell what you plan to do to that will fix or make up for the problem area. Being upfront and honest concerning the problem adds to the ability your client has to put trust in you to complete the project for them.

Even when there has been a natural disaster you can stay ahead of the rebuild game through planning and preparation. Construction Executive offers these valuable tips concerning taking steps to minimize operational downtime after a natural disaster.

Still, there are ways you can help to avoid some of the common problems found on construction sites and in construction businesses.

Steps to mitigating risk

Be certain your contract covers all the details including who is responsible for what

Be sure to include information concerning how change orders will affect both the dollar amount as well as the time frame for the project.

Purchase the best insurance

Some things to consider are, general liability, workers’ compensation, commercial auto insurance, business owners insurance, project specific coverage, environmental legal liability, contractors errors and omissions insurance.

Hire and train your staff well

Build safety training into the routine of how your construction company operates. You can’t tack on the idea of safety training as an afterthought or a “once in a while” meeting that takes place following an accident. Putting safety at the top of your list of ways your construction company benefits both your employees as well as your clients is a sound way to keep the risk factor in control.

Establish formal policies and procedures concerning risk management

Identify the hazard, assess the extent of the risk, provide measures to control the risk and manage any residual risk. This article from Capterra offers much information concerning the identification and control of risks.

Develop relationships with more than one supplier

Having an excellent relationship with your suppliers is very advantageous as this article from Entrepreneur points out. And as the saying goes, don’t put all your eggs in one basket. While you may get the best deals and the fastest service from one special supplier, having more than one source is an excellent step to avoiding the risk of supply failure.

Join industry related associations and build relationships with others in your trade

Knowing you have a trust-worthy fellow tradesman who can step into the gap when your job is at a breaking point is a balm worthy of taking time to achieve. Of course, you’ll be there for someone else when they need help also.

Establish an emergency fund

From natural disasters to broken down vehicles there is always something which hasn’t been anticipated and which will cause problems or delays on your jobs. Having funds reserved just for these types of emergencies can be the one thing that will save your construction contracting business from going under.

What now?

Considering all the above, it is understandable that construction risk management is a tough nut to crack. You need all the help you can get when you are dealing with risk in construction. We, at Schulte and Schulte are here to help you gain the traction you need and are prepared to help you take the necessary steps to establish and maintain the emergency fund you’ve always wished you had but didn’t think you had the dollars for. We’ll show you how.

Call today 866-629-7735 or get in touch here.

Owning then Scaling a Construction Contracting or Service Business

In the beginning you had to:

  • Figure out the legal, financial, and operational aspects of your business
  • Understand how to communicate and negotiate
  • Learn how to promote your business, yourself, and your products or services
  • Comprehend how to keep the accounts, stay organized, and run the office
  • Grasp the responsibilities of entrepreneurship

Now, you’re ready to scale

Not simply running with the big dogs – being a big dog. You’ve mastered so much already and the time has come to master even more. In fact, you’ll need to hone the above-mentioned aspects of starting a construction contracting or service business to a greater degree.

While it doesn’t hurt to know how to pick up the tools of your trade and apply them to good use what matters more is understanding the tools inherent to being a successful business owner.

Consider this

Which is more important?

  • Knowing how to cut a short board or knowing how to cut a meeting short
  • Knowing how to paint a room or knowing how to paint the picture which your potential customers need in order to purchase a painted room from you
  • Knowing how to twist the wrench or knowing how to twist out all the information necessary so you’ll be able to go above your clients’ expectations
  • Knowing how to celebrate your personal achievements or knowing how to celebrate the accomplishments of your crew
  • Knowing how to build then install a cabinet or knowing how to build then scale your construction contracting business

Mindset matters

It is perfectly acceptable to be proud of the skills you have and your ability to accomplish the various tasks associated with your particular trade. Those skills have likely played a great part in getting you where you are now.

And, if you’re going to scale your construction contracting business now is the time to build on the additional skills you’ve been learning all along. Not every carpenter, electrician, plumber, painter, or other tradesman has the where-with-all to become the owner of a business within their discipline. But, you do! Congratulations!

Because you’ve already accomplished much, it is only a small degree of difference to begin your journey of scaling your construction contracting or service business.

Let’s put it this way, we at Schulte and Schulte don’t believe in mumbo-jumbo about wishing or thinking your way to success. We do believe it takes hard work and the proper mindset. We further believe that, while “thinking you can” doesn’t always accomplish the task, “thinking you can’t” will always achieve its goal.

There is more to learn

In an earlier article, I talked about some things you should be doing when working ON rather than IN your business.

  • Planning
  • Hiring
  • Training
  • Leading the management team
  • Delegating
  • Presenting
  • Selling
  • Negotiating
  • Tracking results

If you’re not proficient at any of these skills, begin learning and practicing. Being the leader of an enterprise which is scaling is not an easy job, but it is certainly a rewarding one and one worth putting your best efforts into.

We at Schulte and Schulte are happy to stand beside you and work with you to aid you in scaling your construction contracting or service business.