Contractors Success Blueprint

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Construction Contractor's Blueprint for Success
Construction is a competitive yet massively rewarding field.
To make it in the construction business takes determination,

intelligence, business savvy, technical know-how, salesmanship and
oh yes, did we mention determination? You have to stay focused and
keep moving forward. Contractors that stand still are contractors that
go under.
The construction industry has always

moved in boom-bust cycles, and now
is no different.
During the boom cycle, you have to

compete with every guy out there
who thinks he can simply swing a
hammer and make a fast buck.
During the bust cycle, you have to
keep flexible to get your share of
fewer jobs until things trend up again.
But boom or bust, there is always

one thing that remains constant
through all the ups and downs:
construction happens.
People always need things built, repaired, remodeled and renovated.

They don’t have the technical knowledge and craftsmanship to do the
job, but you do.
How to take advantage of that

simple fact is a big challenge. You
need a blueprint for success.
By staying focused and being

nimble, your great customer-service
savvy contractor business can
become the new leader in your
area.
Blast the competition out of the

water by following the tried and true
blueprint that successful building trade pros use to grow in even the
toughest environments.
Talk to any successful contractor,

in any building trade, and in any
area of the world. They will tell you
that there are a small handful of
simple rules that they follow
consistently to protect and grow
their businesses successfully.
We’ve taken those elements and

principles, and distilled them into
this simple walk-through. We’ve
also included links to resources
that will help you get the most out
of your plans.
Here are thirteen bedrock concepts that will help you create a
solid, lasting blueprint for your own successful construction
contractor business:
1) Never work without a signed contract.
Never. Seriously. The days of a

handshake deal are long gone.
We’ve become a highly litigious
society, suing each other right
and left. Do NOT leave that door
open.
No matter how small the job,

always use a solid construction
or service contract. Always.
Construction contracts protect both you and your customer.
They make communications clear, manage expectations, and set the

parameters of the job. They lay out, in clear language, what’s what.
Be sure that any contract you use spells out, at a minimum:
- Who the parties involved are
- Exactly what the job consists of
- What materials will be used
- Where the job is to be performed
- When the job will be done (estimated timeframe)
- How the job will be performed
- How and when you will be paid
- How any disputes will be resolved.
Always use solid, professional construction and service contracts.

Always consult with your own legal advisor prior to signing any legal
document for any reason. PROTECT YOURSELF.
• Construction Contracts FormPack - Instant Download

• Professional Contractor Forms & Contracts
2) Any and all extras must have a signed change order.
Change orders are professional forms that

legally modify the parameters of an existing
contract.
Again, never do any work of any kind without

having the work, the timing and the payment
spelled out clearly.
Use change orders for all modifications to an

original agreement, no matter how simple or
complex the change may be. This avoids
misunderstandings, manages expectations
and protects profit margins.
Change orders also provide solid legal corroboration should a dispute

arise over any aspect of the changes or how they affect the original
agreement.
• Contractor's Guide to Change Orders

• Change Order FormPack
3) Use accurate job cost data with good estimating practices.
Your profit margin on any job is the

dollar amount difference between
your costs what you charge the
customer. If you misprice the true
costs of your materials and labor, the
difference comes out of your profit,
plain and simple.
Accurate and current cost data is

essential, both during the bidding and contract stages, and during the
job for change orders and other modifications. Good estimating
practices ensure you don't accidentally undercut yourself.
• Standard Estimating Practice

• Markup & Profit: A Contractor's Guide
4) Use cutting-edge estimating software that integrates

seamlessly with your accounting.
Make sure whatever estimating software you

use to work up your bids, it can integrate
seamlessly with your accounting programs,
transferring your estimate data cleanly across
both platforms.
This way you can not only immediately turn a

bid into an invoice, but also compile solid
detailed sales business data that can help you
make effective business choices. For example,
National Estimator integrates beautifully with QuickBooks and
QuickBooks for Contractors.
• National Estimators and Cost Guides
5) Hold field start-up meetings and weekly employee training

sessions.
Direct communication with your

employees, crews and subs is
crucial. Your team needs to be
treated like one.
Make sure everyone is on the same

page on the day's jobs every
morning to avoid delays, confusion,
duplications and callbacks.
Hold regular training sessions to

raise employee skill levels and get
them invested in company goals.
• Basic Construction
Management: The
Superintendent's Job
6) Base all bonus systems on achieving specific goals.
Make all bonuses for everyone, from yourself on down, based on the
achievement of a clearly stated goal.
Not only does this motivate people to produce desired results, but
every time a goal/bonus is reached, it reinforces the motivation of
other employees to try harder to reach their own goal/bonuses.
• Accounting & Financial Management for Residential

Construction
• Accounting Form Pack Download
7) Track profits on completed jobs, not projected ones.
Too many contractors book profits on

projected jobs by year's end, to their
own misfortune.
Do not gamble with your future - book

your profits on reality, not fantasy, by
tracking real amounts based on
completed jobs paid in.
Make decisions based on what you

know is true, not on what you think may
or should happen.
• Contractor's Guide to QuickBooks Pro

• Builder's Guide to Accounting ( with CD)
8) Consistently work targeted marketing programs.
Decide what your company is,

and what it does. Then see what
kind of customers actually need
what you provide, and go
relentlessly after them.
Make marketing your services

the highest priority part of your
regular business practices.
Marketing is how you reach new

customers that want your
services, and how you retain old
customers and profit from them
again and again. Without marketing, there are no jobs, and without
jobs there is no profit.
• Marketing Made Easy: Principles & Procedures for the AEC

Firm
9) Use a proactive customer relationship tracking system.
Don't stop feeding that job funnel!

Bring in the leads and then follow
them up methodically and
consistently.
Tracking your interactions not only

allows you to mine your customer
base more effectively, it allows
you to see patterns over time that
will help you make crucial
business decisions.
• Free software download: Lead Manager
10) Create and implement strategic business plans.
Working without a business plan is like walking a highwire without a

net. Sadly, most small businesses do not have a working plan, and
instead fly by the seat of their pants, most often right into a brick wall
of reality.
“If you fail to plan, you plan to fail”.
Strategic business plans are a

roadmap for growth, helping you
anticipate obstacles and choose
the most profitable paths.
Business planning is a simple and

straightforward task, and one of
the best things you can do for your
company. Do it now.
• Free software download: Biz Plan
11) Set clear goals and targets.
You will get where you're going if you know where you want to go.
Ask yourself realistic questions,

and make practical decisions.
Use all the data you have

collected about customers, jobs,
costs, and profits so far. Let the
patterns they hold jump out at
you.
How big do I want to grow this

year? How much do I want to net per job this year? What steps do I
need to take to make that happen? Do I need to buy equipment?
Should I get a loan? What kind of advertising works best for me? How
do I know that for sure?
Etcetera. Consider thoughtfully your dreams and aspirations, and

ground them in the reality of actions required.
Setting clear goals and targets are a fundamental part of your

strategic business plan and your blueprint for success.
• Production Checklist for Builders and Superintendents

• Free Software Download: Virtual Boss
12) Have field operational systems in place.
Use proven project management techniques to coordinate jobs,

supplies and crews smoothly and efficiently.
With solid field operational practices, you can minimize profit-eating

delays, overruns, and callbacks. You can quickly improve efficiency
and increase profitability.
• Project Management FormPack Download

• Construction Project Log Book
13) Cultivate a strong management team and vision.
Your leadership decisions determine your everyday results.
Where are you now?

Where do you want to be?
What do you want for the
future? How can you make
it happen?
Be bold. Be brave. Think

outside your own comfort
zone, try something new.
Set clear measurable

goals and targets.
Write out exactly what you

want so you and others
can see it clearly.
Encourage everyone in your team to do the same.
• Managing the Small Construction Business

• Smart Business for Contractors
Building a great business takes hard work, positive decisions and

visionary determination. Have confidence in your ability to take the
necessary actions, and you will not simply survive – you will thrive.
Use all the resources at your disposal to increase your business

knowhow and beef up your business toolbox. Here are just a few
ideas and places that can help you out right now:
Small Business Administration

- An amazing wealth of information for entrepreneurs and small
companies, and a grossly underused resource. For example, do you
know they have an area specifically for hooking up subcontractors
with companies already working government contracts? Get yourself
a piece of that pie!
SCORE (Service Corps of Retired Executives)

- SCORE is a national association dedicated to helping small
business owners form and grow their businesses. They can give you
a personal business coach to help you with every step of your
business. Need a mentor? Get a good one right here.
Contractor City’s Builders Bookshop

- Over 200 professional books, videos and software titles to help you
in every aspect of your construction business.
To Your Success!

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Disclaimer And/Or Legal Notices:

While all attempts have been made to verify information

This publication is not intended for use as a source of legal or accounting

The Author and Publisher assume no responsibility or liability whatsoever on the

The restructuring of the content found in this publication is expressly forbidden.

Construction Contractor's Blueprint for Success

Construction is a competitive yet massively rewarding field.

To make it in the construction business takes determination,

The construction industry has always

During the boom cycle, you have to

But boom or bust, there is always

People always need things built, repaired, remodeled and renovated.

How to take advantage of that

By staying focused and being

Blast the competition out of the

Talk to any successful contractor,

We’ve taken those elements and

1) Never work without a signed contract.

Never. Seriously. The days of a

No matter how small the job,

Construction contracts protect both you and your customer.

They make communications clear, manage expectations, and set the

Be sure that any contract you use spells out, at a minimum:

- Who the parties involved are

- Exactly what the job consists of

- What materials will be used

- Where the job is to be performed

- When the job will be done (estimated timeframe)

- How the job will be performed

- How and when you will be paid

- How any disputes will be resolved.

Always use solid, professional construction and service contracts.

• Construction Contracts FormPack - Instant Download

2) Any and all extras must have a signed change order.

Change orders are professional forms that

Again, never do any work of any kind without

Use change orders for all modifications to an

Change orders also provide solid legal corroboration should a dispute

• Contractor's Guide to Change Orders

3) Use accurate job cost data with good estimating practices.

Your profit margin on any job is the

Accurate and current cost data is

• Standard Estimating Practice

4) Use cutting-edge estimating software that integrates

Make sure whatever estimating software you

This way you can not only immediately turn a

• National Estimators and Cost Guides

5) Hold field start-up meetings and weekly employee training

Direct communication with your

Make sure everyone is on the same

Hold regular training sessions to

6) Base all bonus systems on achieving specific goals.

• Accounting & Financial Management for Residential

7) Track profits on completed jobs, not projected ones.

Too many contractors book profits on

Do not gamble with your future - book

Make decisions based on what you

• Contractor's Guide to QuickBooks Pro

8) Consistently work targeted marketing programs.

Decide what your company is,

Make marketing your services

Marketing is how you reach new

• Marketing Made Easy: Principles & Procedures for the AEC