Are you ready to take on larger construction projects, but don’t know exactly how or where to start? This article will prepare you to take on bigger projects, make bigger profits, and help you know where to find them.
Expand your team
All great projects start with a great team. You have to have both an internal and external team to take on larger construction projects.
Your internal team consists of your project manager and field personnel. Make sure both have the skills or experience in projects of all kinds of sizes and scales. You may need to hire additional fieldworkers to take on the amount of work you’ll be performing. It’s best to hire them before you need them and get them trained and ready to go.
Your external team includes subcontractors and suppliers. You’ll need strong team members here to ensure that you have the labor and materials you need to complete the project as scheduled and promised. Talk with your subs and suppliers before you start bidding on larger projects to make sure they are on board and can handle the added load.
Set up your finances
There are several financial considerations that go into taking on larger projects. They include ensuring you have the financing, insurance coverage, and bonds needed.
Larger projects mean larger invoices. You’ll have more expenses and more overhead on bigger jobs. Unfortunately, slower payments are also a regular occurrence on bigger jobs. Prepare ahead of time by requesting a deposit if you can or saving up additional money so you have a safety net. You can also look at temporary financing measures if things get financially tight.
Make sure you have the required insurance policies and limits to cover the project. Talk to your agent to ensure that you have the policies required by the contract, as well as the required limits. Not having enough insurance can put you in breach of contract and cost you more money in the long run.
Public works projects may require that you purchase performance and payment bonds to guarantee your work. You qualify for these bonds based on your work history and financial standing. Don’t wait until the end to find out your standing with bond companies. The more bonded work you do, the easier it is to get coverage.
Secure more equipment
Depending on the type of work that you are doing, you may need to invest in new equipment to meet the needs of larger projects. Assess your current fleet’s capacity and note any gaps or areas where you need additional help.
Purchasing new equipment is the way to go if you can afford it and know that the equipment will be used regularly. There’s nothing like buying a piece of equipment and watching it collect dust. If you can’t regularly use a piece of equipment, or you need a specialty product, look at renting or leasing.
Most companies rent or lease their equipment, especially the larger pieces. It’s economical and ensures that you have the equipment only when you need it. Otherwise, it can sit around collecting dust. Renting is best when you need equipment for the short-term, such as a few months or weeks. Local rentals jobs will deliver and haul away, taking care of the logistics for you.
Where to start looking
Once you are ready to take on larger projects, you have to know where to find them. Besides networking with contractors and project owners, you can search on bid websites, like PlanHub, for larger projects in your area. PlanHub not only allows you to see projects and their scopes, but it also allows you to gauge the competition with its Competitive Analysis tool. Knowing your competition before you go in can save you time and money bidding on projects. For a demonstration of PlanHub’s search and analysis features, contact us today.
