Construction is a people-based business. Business is a fun, complex and high-stakes game. Winning is FUN!!! Contractors with teams that work together the best will win the game.
There are five main value levers that contractors can pull to truly increase the value of the business as measured in long-term return on capital and valuation during a succession.
Nothing will have a bigger impact on a contractor’s business than bringing in more quality revenue on a recurring basis. Effective business development is a capability to be designed and managed no different than the ability to build a project.
Project execution is the #1 priority for contractors. Effective project review meetings are the #1 control mechanism for ensuring projects stay on-track.
Construction in any given industry sector or geographical area is a cyclical business. There are four major levers a contractor can pull to ensure the business performs well throughout all economic cycles.
As contractors go through different stages of growth it often makes sense to expand the financial management role into more comprehensive business management role. At exactly what stage a contractor starts to expand this role depends on.
Contractors can improve business results by applying many of the same processes and vocabulary to their business that the industry is applying to projects. Consider how the different Levels of Detail (LOD) could be applied to your planning processes.
“Hard Skills” including the technical ability to design and build a project are the foundation of the construction industry. The “Soft Skills” such as the ability to deal with people is the glue that holds complex projects and contractors together.