Acquiring new business in the construction industry is accomplished in many ways, especially in a strong economic development cycle. General contractors, construction managers and subcontractors should know their risk control limits and be efficient and confident in the pursuit of new business. The work acquisition process in construction has as many inherent risks—as does work execution. Following are two of the most common ways to gain new projects.
In every industry, technological advancements are helping companies to be more efficient and save money. Construction is no exception. According to the 2016 report on the results of a global PwC survey, Industry 4.0: Building the Digital Enterprise, respondents anticipate a return on their investment in technology over the next five years. Participants in all industry sectors expect to realize a 2.9 percent increase per annum in revenue. Engineering and construction companies anticipate a revenue gain of 2.7 percent per annum. On average, companies across all sectors expect to reduce costs by 3.6 percent annually.
A successful contractor does everything possible to run a lean, financially sound company. Finding ways to save money while increasing margins, improving cash flow and operating more efficiently is key. Following are 12 financial strategies contractors can implement to stay financially healthy.
Private Equity’s Ability to Improve Cash Flow and Further Business Growth Private Equity is One Way for Contractors to Grow Their Business
As the economy remains solid and businesses generally are doing well, most construction contractors have likely thought about ways to continue growing their companies. By investing in a minority stake in a business, strategic equity partners can provide capital for growth or shareholder liquidity and help take the business to the next level.
Prevailing business wisdom holds that the way to reduce credit risk is to limit credit lines, be stingy in allowing credit and freeze orders on past due accounts. This line of thought posits that it is generally impossible to lower “bad debt” losses without adverse consequences to sales and business expansion.
Verify Clients’ Credit History and Cash Flow to Protect the Bottom Line Construction Contractors Must Research Potential Clients to Ensure Timely Payment
Most construction contractors don’t consider how the creditworthiness and cash flow of their customers can impact their bottom line. But they should. More than 40 percent of small businesses have customers that are more than 90 days late on a payment, according to a survey by RocketLawyer.
Back in Session New era of K-12 construction requires contractors to excel at meeting tight schedules by working efficiently
After years of stagnation, construction of K-12 schools is finally ramping back up in many districts across the country. In fact, institutional construction is expected to increase 10 percent this year to $118.5 billion, according to Dodge Data and Analytics’ 2017 Dodge Construction Outlook. This number largely is driven by the education sector, which comprises more than 40 percent of the institutional market.
Staying on budget and schedule is a front-and-center priority for any project team and ultimately how performance is evaluated. While there are many tools to control projects, having the best controls doesn’t matter if the job is destined, from its inception, to fall behind on schedule and cost more than expected. There are two reasons this occurs, each with its own cure.
Easy Tips to Stay On-Schedule and Within Budget Three Ways Construction Contractors Can Complete Projects On Time and Within Budget
Let’s face it, projects are a necessary evil that cause all sorts of headaches. No matter how much scheduling and budgeting goes into pre-project planning, projects always seem to last longer and cost more than anticipated. However, budgets and schedules are two sides of the same coin. What affects one, will almost certainly affect the other. By using the following tips, staying on-schedule and within budget will no longer be the headache it once was.
Construction industry professionals often focus on the technical details of projects and personnel. After all, they’re all technically trained, and those details must be properly coordinated and executed to complete a project successfully. However, there is another key driver to project success that the construction industry often doesn’t value highly enough: project culture.
Turn Your Website Into a Recruiting Machine Construction Contractors Can Recruit Better Employees by Focusing on Their Websites
The construction industry is staring down the barrel of a decades-old talent shortage. There is no clear answer to the problem. The only thing certain is that firms will continue to compete fiercely to attract and recruit talent.
Construction sector executives named geopolitical instability and workforce management issues as the biggest challenges facing their industry, according to new research by leading global advisory, broking and solutions company Willis Towers Watson. The company surveyed 350 C-suite executives across the globe to look at the most significant megatrends and critical risks facing the construction sector.