Every market contains a mix of smaller contractors who are extremely competitive going after smaller projects with a few larger players including some from out of the area who build the larger projects. These larger projects have less competition and are often negotiated with the contractor selected based on qualifications.
If you are at the smaller end of the scale you must execute a three-phase strategy for growth. Execute well and you will find that within years you will be regularly competing with and winning against the bigger players.
- Build to “Fighting Weight” where you have the project team resources to reasonably compete for larger projects. You simply need to be able to compete in the heavyweight range. Not win every time but at least go through a few rounds and be good competition.
- Build and maintain operational efficiency so that you can continue to compete on the smaller projects. You can’t lose this ability as you build to your fighting weight.
- Build very strong preconstruction services to give you a competitive advantage. By getting creative at the precon phase a “David” can easily beat a “Goliath” - don’t assume you are at a disadvantage.
Bonus - getting in at the precon phase gives you time to recruit rather than the shorter fuse of a Design-Bid-Build project.