Onward and Upward- 4 Ways to Keep Your Construction Company Thriving
Globally, labor-productivity growth in the construction sector has averaged just 1 percent a year over the past two decades, compared with growth of 2.8 percent for the total world economy and 3.6 percent in the manufacturing industry [McKinsey].
That growth moves about as quickly as a toddler trying to tie their own shoes for the first time.
Talk about moving at a glacial pace.
But just like you wouldn’t keep your child in velcro shoes the rest of their lives because “it’s just easier that way”, so, too, should you avoid stagnation by “doing things as they’ve always been done”.
A little healthy challenge and pushing yourself and your team beyond your comfort zone is the key to continued growth and success.
Shifting Gears: From “Boss” to “Leader”
As the owner of your own construction company, not only have you spent years developing your trade, you have also put your heart and soul into creating your business. At this point in your career, with hundreds of jobs under your belt, there’s no doubt you know what you’re doing. You’re the boss.
Shifting the mindset from “boss” to “leader” is the first step to cultivating a culture of continual growth. Think for a moment what it means to be a “leader in the industry”. What does this statement usually entail? Mutual trust. Integrity. Knowledge. Experience.
As the focus changes to providing instruction, coaching, and encouragement, you equip your team with the right tools to swiftly resolve the obstacles that arise at a jobsite, manage time more effectively, and promote confidence as they develop their own trade skills.
Maintain Transparency & Open Communication
As mentioned above, two key attributes of a leader in the industry is mutual trust and integrity. This stems from transparency and open communication, both within and outside of your organization.
Within your business, transparency and open communication promotes a well-oiled, collaborative machine. It allows office members to streamline the payment approval process, having a steady flow of communication between superintendents, project engineers, and the in-office project manager. It keeps the line open for the final approval from the accounting team, leading to reduction in payment lead times. Transparency also allows better understanding of the project status for subcontractors preparing to go onsite, leading to stronger, longer lasting relationships with your subs.
Now, think about transparency with your clients and lenders - how much faster could the job move forward when everyone is on the same page? Are you providing clear estimations of the job at hand, as well as a concise proposal package?
Proof of guidelines and expectations bring trust to the table, and establish better relationships with those involved in the project.
Protect Your Company
It’s no secret that contractors and subcontractors can be hit the hardest during recessions or other circumstances, like pandemics and natural disasters. As the leader of your company, how do you protect your team from risk?
Contractors spend countless hours hunting down lien release information, only to collect half of what they really need. Some skip filing the correct documents completely, due to difficulty or lack of time to go through the proper legal channels.
In a recent survey conducted by Construction Dive, of 540 construction professionals surveyed, 80% revealed that they spend a significant amount of time during the workweek pursuing payment [Construction Dive]. Only 52% of respondents said they are usually paid in full for their work.
As a result of the COVID-19 pandemic, the number of liens filed through March 2020 jumped 40% since January. Although taking this precaution can be time consuming, and sometimes uncomfortable when legal action is required, it is a necessary step in ensuring protection for your company, and subcontractors, during this pandemic.
Implement the Right Technology
The construction industry has not changed much over the years in terms of technology. This is precisely why productivity growth has lagged behind compared to other industries for the last 20 years.
Implementing the right technology will give you and your team the resources you need for continued growth and success. That’s exactly what the founders of CoFi had in mind when they created CoFi software: removing excess paperwork, opening the line of communication between lender, contractor, and borrower, and reducing payment times up to 10 days.
By increasing productivity and streamlining processes, you spend less time in the office, and more time doing what you do best: construction and development.
Onward and Upward
As an experienced contractor, you know what you’re doing. CoFi is here to help your company continue to thrive. Learn more about how CoFi software can help your business here.