Sundt and Growth of Wealth

One of the most common and dangerous misconceptions we hear about ownership in a construction company is that it’s all about perks owners get.

D. Brown Management Profile Picture
Share

Perk (/pərk/) noun:  Abbreviation of perquisite - money, goods, or other benefit to which one is ENTITLED as an employee or as a SHAREHOLDER of a company.

Succession: Investing in a Construction Business. Book: Level Headed, Inside the Walls of One of the Greatest Turnaround Stories of the 21st Century by J. Doug Pruitt and Richard Condit.

  • What kind of vehicle can I get?
  • What kind of expenses can I get reimbursed?
  • What memberships can I get paid for?
  • What travel and entertainment can I get as benefits?
  • How much time can I take off?
  • How big will my office be?  

If these are the questions that come up, they are 100% the wrong level of questions.  

The biggest “perk” to being an owner of a construction company is the opportunity for your money get a 20-35% annual rate of return versus the 8% or so that the market provides.  

Owners who are focused on exploiting that single “perk,” viewing it more as a privilege, are the ones who will truly outperform in the long run.

Sundt is a great example of this alignment




Bechtel and Business Development
Nothing will have a bigger impact on a contractor’s business than bringing in more quality revenue on a recurring basis. Knowing there is a stable stream of quality projects coming in allows making the investments necessary for operational excellence.
Owner Occupied Real Estate for Contractors - Lease or Buy?
There is no simple answer to this question. Much of the advice you will get has bias attached. Start your decision making process by building your own models and making general assumptions looking into the future. Use this Excel model to start.
The Right People - Jim Collins
What differentiates contractors is their ability to execute basic strategies consistently. Effective execution comes down to people, process and tools - in that order.