5 Most Common Mistakes Construction Companies Make & How to Avoid Them

As a business owner within the residential and commercial construction industry, it’s that time of year again when you look to make company improvements. You’re wrapping up projects for the year and sitting down with your analytics. You’ll be reviewing budgets and project management strategies.

The construction landscape has changed over the last year. And you recognize just how important it is for your company to be dynamic and flexible to adapt to any unforeseen trends and changes that lie ahead. To help you carve out your best strategy, we’ve put together a roster of common construction mistakes that most contracting companies make and how to avoid them.

Dodge these potholes with your construction company business strategy, and you’ll be positioned for a successful year ahead!

1. Not Using the Best Software Solutions

If you’re still processing bids, engaging clients, or managing business with manual processes, you’re making a mistake. From construction cost estimators to dedicated software for project budget management, there are a host of upgrades out there to streamline how you do business. Not adapting with these necessary software efficiencies means you have a greater chance of human error. And you’ll be spending way too much time on aspects of the job. When your commercial and residential construction competitors are surging ahead with widespread software adoption, it’s mission-critical that you explore your options, too.

2. Not Creating a Scaling Strategy for Growth

Your construction company has a million moving parts. As the owner, you’re constantly changing hats and tackling day-to-day challenges. It’s easy to become sidetracked and get caught up in the operations. And another construction mistake you could be making involves losing sight of the big-picture growth and scaling strategy. 

As you carve out a plan for yourself now, pay attention to long-term goals for your company. Incorporate time and effort to develop company growth missions. It’s not just about sales or landing new clients. Scaling and growth planning means identifying better ways to bring on more clients without losing efficiency in operations. This might mean more hiring or better software. But it might also mean new company offerings or breaking into new territory, as well.

3. Construction Mistakes with Subcontractor Management

How did you do this year with your subcontractor management strategy? If you struggled to collect payments or get work done in a timely manner, you could stand to make some improvements to your process. Your subcontractors represent your company’s job quality. You can’t afford to have marginal performers on your list. 

Spend some time reviewing your subcontractor relationships. Look to develop better partnerships with those who perform well and take necessary steps to remove those who don’t. In your quest to find new and better subcontractors, conduct company interviews, review the online reviews, and negotiate rates for ongoing work.

4. Not Devoting Enough Effort to Quality Management

Your construction company prides itself on performing quality work. But you also know that one of the biggest pitfalls in the business, and one of the most common mistakes, is an unintentional focus on quantity over quality. Don’t be in a race to get more jobs so much that you lose sight of your initial quality of work. To ensure that your construction company grows and continues to perform quality work, develop and implement a quality management plan. Have follow-up mechanisms in place that allow you to gauge finished products and customer satisfaction. You can then keep your finger on the pulse of overall quality with every project.

5. Not Planning for the Unexpected

If anything taught us about the need for businesses to prepare for the worst, it was the pandemic. It would be a critical construction mistake to presume to know what lies ahead with the economy, the housing market, the commercial development landscape, the workforce, or the continued effects of COVID-19. You can’t necessarily predict what may happen, but you canplan ahead. Look for ways for your company to stay flexible in any scenario, including potential recessions or workforce shortages. Anticipate new standards for eco-friendly solutions. Implement new digital methods for engagement, communication with customers, and project management. Keeping your construction company agile will ensure it also continues to be successful.

If you’re ready to make significant changes to your company brand, messaging, and sales, let Awareness Business Group be your guide! We can help you make sense of current trends within the construction industry and ensure you avoid making these common construction mistakes.

Marcus Wendt

Chief Executive Officer

Marcus helps lead and grow companies from the ground up. He has a proven track record. His experience is diverse with expertise in sales, branding, marketing, automations, manufacturing, building teams, managing operations, sourcing suppliers and outsourcing to offshore locations.