Four ways to make your construction business a success

Securing contracts, getting the project done and managing employees, sub-contractors and clients are some of the challenges of running a construction business.

“External factors like the economy, interest rates and investor demand can influence the success of any business,” says QBE Insurance National Product Manager for Construction, Dale Gleeson.

But, he explains, there are some specific skills that are the backbone of successful construction businesses whether they’re large or small.

Keep these four factors in mind when planning your successful construction business

1. Keep key contacts

 Making and maintaining contacts is particularly important for all contractors.

“For construction services companies operating in niche markets, it’s especially critical to form lasting strategic relationships or alliances with other building and construction companies,” Gleeson says.

It’s mutually beneficial if you can cross-over sub-contractors, labour and services for certain jobs.

2. Business expertise

It’s essential for construction business owners or operators to have strong project management skills, such as budgeting, time and project scheduling, strong skilled labour coordination and excellent customer service.

“The ability to be flexible to market demand and embrace emerging technology should also be part of a construction business owners skillset,” Gleeson says.

3. Maintain reputation

Word of mouth and referral is a great sales channel for small businesses in the construction world, particularly in the residential space.

“Meeting your promised time, quality and cost specifications help construction companies in tenders for new commercial projects,” adds Gleeson.

4. Have the correct construction insurance

Building projects are almost always expensive time and labour consuming so if a builder experiences injury, loss and damage it is likely to have an impact on job profitability and reputation.

These types of unforeseen events can often be out of the builder’s control, according to Gleeson who says weather and worker injury are the two most common insurance claims lodged in the Contract Works area.

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The advice on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. You must decide whether or not it is appropriate, in light of your own circumstances, to act on this advice. You should ensure you obtain and consider the Policy Wording or Product Disclosure Statement and Target Market Determination for the policy before you make any decision to buy it.

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