Elevate takeoffs for faster bids and increased project success for FREE. See Details Here.

PlanHub’s Q2 Research Reveals Many Opportunities. Register for the Webinar and Learn More

Four Successful Construction Business Models

4 Successful Construction Business Models

Successful construction companies follow successful construction business models. A business model influences a company’s target customers, hiring practices, funding needs, and marketing efforts. Before we describe four successful construction business models, we’re going to answer the question: what is a business model? We’ll also dive into the best construction bidding websites to ensure that you’re connected to the best subcontractors, for the best price.

What is a business model?

A business model answers the question: What business are you in? It provides the goal and structure for your business. It’s one of the first decisions you need to make when starting a business, as it informs the market, audience, and message of your marketing efforts. It also determines how you conduct your business, where it’s located, your staffing needs, and the amount of financing you’ll need.

Your business model should align with your skills, your employees’ skills, the existing competition, and the available market. Before deciding on a model, you’ll need to assess your knowledge, training, and experience, and find out where your skills best fit into the local market. To learn more, also be sure to visit our post answering the question, “What Is Lean Construction?”

One company can have multiple business plans that they are pursuing at the same time. Generally, larger companies have the resources, both financial and workforce, to provide multiple business models and work towards business model innovation. A small construction company should start out focusing on just one until they have developed a market share and have seen success. From there, they can expand their products or services into other areas.

Succesful construction business models

1. General construction services

General construction companies provide non specialized services to their customers. They may focus on just one customer type or offer generalized services to appeal to a broader market. General contractors are an example of companies that provide general construction industry services. They may focus on appealing to specific sectors of the market, like only residential construction, or may focus on a specific area within the construction sector, like renovation.

General services contractors either hire skilled construction workers, like a project manager, or other contractors to provide services to their customers. Through the use of subcontractors, they are able to provide a wide variety of construction services to their customers.

2. Niche construction services

Niche contractors provide specific construction services that require licensing or special knowledge or training. They often hire workers to provide the necessary specialized skills to perform the work. These companies are hired by general service contractors to perform trade work and specialized work.

Niche contractors are in high demand, but there can be a lot of competition. It’s important to research the demand and state of the market in your local area before starting this type of company.

Post projects in minutes, drive more business. Find over + 300,000 qualified subcontractors and get to work quicker. Request a demo!

3. Production and manufacturing

Production and manufacturing companies produce or fabricate materials used in construction projects. They can provide a wide range of standardized and custom products and materials. These types of companies are always in high demand.

Before starting one of these companies, research the products and materials that are in need in the local market. You may find a niche that you can fill with your knowledge and skills. These companies often need a lot of funding to get started.

4. Suppliers

Suppliers don’t produce or manufacture construction material but are responsible for selling and distributing products manufactured by others. These businesses can be brick and mortar establishments that serve the local market, or an e-commerce site that serves a larger market. Their customers include general contractors and trade contractors that use their materials. They require less money to get started.

How business models influence marketing

Depending on which construction business management model you select, it can have an effect on how you market your business. It affects your target audience, how you deliver your marketing message, and what message you send.

General services contractors market to the general public. The marketing campaign may target only business customers for commercial contracting or homeowners for residential contractors. General contractors may also choose to provide services targeted to specific niches, like healthcare, restaurants, or infrastructure. These companies should target their marketing to these audiences where they get their information. Their marketing message should focus on their knowledge and experience.

Niche contractors, or subcontractors, have a more specific audience – general contractors who can use their services. Their marketing message should be tailored to these companies and describe their experience and expertise. Trade contractors can find GCs looking for their services on lead sites, like PlanHub. It’s an easy way to find work and market effectively to GCs who need them.

Manufacturers and suppliers can market directly to the contractors who need their services or products. They can also target designers who specify their products in project documents. The marketing message should focus on the features and benefits of their products.

Conclusion

Selecting a business model is one of the first steps to starting a new business. It determines who the business’s customers are, which in turn affects the workers they hire and directs their marketing efforts. Contractors looking for work need to be clear about their marketing audience and where they can find them. Free general contractor software like PlanHub connects general contractors and subcontractors. To see how PlanHub can help your company find more work, schedule a demo today.

Be the first to know

PlanHub insights, resources, and news, sent directly to your inbox.

    planhub
    planhub icon

    Data and Deep Insights

    We make construction smarter by connecting with the right people, at the right time, for the right project.

    With our technology and data intelligence, we empower construction professionals to easily build the right business relationships, streamline pre construction processes, and make efficient decisions.

    From competitive intelligence in each project allowing you to know how many other contractors are downloading or bidding to insights as to contractors’ performance, we provide the data you need to lead your business to success.

    By providing faster, simpler, and unmatched data insights in each step of the pre construction process, PlanHub helps your business lay a strong foundation for the success of the rest of the construction process.

    planhub icon

    Bid Leveler & Proposal builder

    Comparing bids to one another has never been easier. Users can now see bids side by side, compare bid amounts, and review subcontractors’ certifications and qualifications all in one place.

    Bid Leveler’s apples-to-apples approach allows you to easily drill down and see detailed, easy-to-scan cost breakdowns. Indicate bid preference, hide bids that don’t meet your needs, and request needed information from subs.

    planhub icon

    Full Bid Management

    From the initial decision to pursue a project to the final bid submission and follow up, bid management plays a central role in pre construction.

    Effectively managed bids during the preconstruction phase set the stage for a successful project execution and satisfied clients.

    Streamline bid management from project posting to estimating, bidding, and awarding in one place with easy project posting, project-contractor automatic matching based on trades, location, and qualification with PlanHub.

    Use bid planner, bid builder, bid leveler, and award tools to always know what’s going on with each project and bid.

    planhub icon

    Estimation and TakeOff

    Let’s face it—time is money. And the more time it takes to perform takeoffs and submit bids, the more you risk losing out on valuable revenue opportunities. Manual methods and locally installed desktop software slow your takeoff process, and many digital solutions currently on the market can be overly complex and not user-friendly. 

    Build faster takeoffs, get more bids out the door, and win more projects. Forget pen and paper, outdated desktop software, and overly complicated digital takeoff solutions. PlanHub’s easy-to-use Takeoff tool helps you and your team build accurate takeoffs faster, minimize errors and material waste, and win more projects that boost your business growth. Performing your takeoffs with PlanHub allows you to:

    • Streamline and integrate your process: Perform your takeoffs in the same platform you use to manage your network and bids.
    • Avoid costly estimating errors: Get better accuracy with digital tools instead of traditional, mistake-prone pen and paper.
    • Collaborate easily: Share and work with your team, no matter where you—or they—are located.
    • Submit more bids and win more projects: Get quality bids in front of general contractors faster and get ahead of your competition.
    planhub
    planhub icon

    Document Management

    Organize, store, and manage various documents, blueprints, drawings and other information related to projects before the actual construction phase begins.

    This phase is crucial for setting the foundation of a successful construction project, and effective document management plays a significant role in ensuring that all necessary information is accessible, accurate, and up-to-date to all interested parties.

    Access, review, work on, and share large complex documents in one platform with amazing speed. From project definition, drawing management, takeoff, estimation, bid management, and contracts, everything happens in PlanHub.

    planhub crm
    planhub icon

    CRM

    Be part of a construction professionals’ ecosystem that enhances collaboration, streamlines project management, and fosters smart relationships between companies, construction professionals, and projects.

    Enjoy seamless communication, build strong relationships, and streamlines project management. By leveraging the power of connections and collaboration, we enhance efficiency, save time and resources, and drive collective growth in the industry.

    planhub network
    planhub icon

    1M+ pre-qualified network

    PlanHub is the leading platform that connects companies, construction professionals, and projects in the pre-construction industry, focusing on building and developing meaningful relationships to enhance efficiency and productivity.

    We have integrated general contractors, subcontractors, and material suppliers’ workflows in one platform to simplify the complex back and forth usually present in preconstruction. By allowing all interactions to be done through PlanHub, tracking projects and relationships is much easier, saving contractors and material suppliers time and money. Interactions in the platform are tagged and measured to provide insights to users.

    General contractors create bid packages that are shared in PlanHub as projects. They can include templatized lists of all CSI cost items as part of the new Baseline feature. Baseline allows for faster and more accurate bid requests, facilitates homogenization of subcontractors’ bids, and simplifies the comparison of incoming bids.

    Subcontractors are automatically matched with relevant projects based on their profile, preferences, and pre-qualification information saving hours of research to both sides. They can review project details, documentation, and blueprints.

    planhub icon

    High-quality projects

    Your one-stop job for qualified hard-to-find private project leads in varying stages like pre-planning, bidding, etc., and across different geographies, zip codes, or distance to your office.

    Projects include plans, specifications, bid dates, and other relevant project information.

    You can segment project leads by type of project, status, project building use, trades and sub trades, or create your own list of keywords — and be notified when one of them is found in a posted project’s documentation or plans.

    We make it simple to find projects that match your business — and make sure you are notified right away.

    				
    					<script src='https://planhub.com/wp-includes/js/jquery/jquery.min.js' id='jquery-core-js'></script>
    <script charset="utf-8" type="text/javascript" src="//js.hsforms.net/forms/embed/v2.js"></script>
    <script>
      hbspt.forms.create({
        region: "na1",
        portalId: "7063061",
        formId: "ced7254f-5c61-49b9-9ce0-6f870b79a958"
      });
    </script>
    				
    			

    Get the report!

    From the very beginning, PlanHub has been a place where people can do meaningful work and build strong relationships.

    Come grow with us! We’re building innovative technologies that simplify preconstruction for everyone.

    Expand your network and connect with general contractors, subcontractors, owners, architects, and suppliers – not to mention thousands of relevant projects at your fingertips.

    Generate relevant leads, faster and with precision. With access to private, hard-to-find projects, you can connect with architects and owners on projects still in the pre-design and design stages.

    PlanHub’s advanced suite of bid management tools allows you to increase productivity, identify relevant projects using data, build bids with Takeoff, and manage bids through the entire process.

    Create quicker, improved takeoffs effortlessly. PlanHub’s Takeoff Core aids your team in accurate, faster estimates, minimizing errors, and driving business growth.

    Expand your network and connect with general contractors, subcontractors, owners, architects, and suppliers – not to mention thousands of relevant projects at your fingertips.

    Generate relevant leads, faster and with precision. With access to private, hard-to-find projects, you can connect with architects and owners on projects still in the pre-design and design stages.

    PlanHub’s advanced suite of bid management tools allows you to increase productivity, identify relevant projects using data, build bids with Takeoff, and manage bids through the entire process.