Issue 9 of 9: Low Barriers to Entry

Construction Ownership Transition Issue 9 of 9: There are Few Barriers to Entry for New Contractors.

D. Brown Management Profile Picture
Share
Succession: Ownership Transition Issues - Number 9 Barrier to Entry. Don't Let an Ownership Transition Create Another Construction Contractor to Compete With You.

About 500 construction contractors start up each day.  

  • Many of those are just people having an “entrepreneurial seizure,” as Michael Gerber describes in The E-Myth Contractor.  
  • A few of these will have the grit and skills to build the ENR Top 400/600 contractors of tomorrow.  
  • Others are experienced construction executives who will go on to build substantial construction businesses relatively quickly.  
  • In most cases, a new contractor starting up will cause a serious talent drain on the contractor they leave, as well as changing the competitive landscape.

Make sure that your ownership transition plans don’t create another competitor.  


Issue 9 of 9: Low Barriers to Entry
Continue building value in your business, yourself and your key team members with a good succession strategy....

Issue 9 of 9: Low Barriers to Entry
Continue building value in your business, yourself and your key team members with a good succession strategy....

Foreman - Four Sometimes Competing Responsibilities
No other position in the construction industry has a bigger impact on field productivity than the Foreman who is leading the crew on front-line. There are four major responsibilities the foreman has that often seem to be competing with each other:
Responsibility Assignment Matrix (RAM) and Contractor Growth
A responsibility matrix is a simple but powerful tool for helping everyone on a project and in the company see who is responsible for what. With a few added columns, it can easily indicate when, what tools, and link to the "how-to" procedures.
Definition - Delegation
Delegation is the process of distributing and entrusting work to another person. This includes standards, resource allocation, follow-up, and quality checks to ensure the work is done correctly. Accountability for outcomes does not diminish.