Being a general contractor is a tough job. You have to be good at a lot of things, or at least be well connected to a lot of professionals with particular skills. As the general contractor, you oversee the entire building project from foundation to gutters. You have to know when each specialist is needed because timing matters. You have to be part meteorologist so that you can work with rather than against the weather. And you have to be a bit of a fortune teller to properly estimate the budget for the project.
There are a lot of opportunities for the client to be very angry with you. The budget and timing are two big ones because they directly affect the client's wallet. Go too far over budget and the client will not be able to complete the project. That's a problem. Get the timing wrong and the client will have already sold their home and be stuck footing the bill for a hotel for the family until the project is complete. If that project has to be delayed over the winter due to timing and weather, that can be a financially devastating proposition. One wonders how any general contractors find success. Here is some of what is in their toolkit.
The Right Bid
With jobs that require bidding, the right bid is the main tool. Successful contractors use tools that help them make the right bid on construction jobs. There is a lot to making the right bid. First, you have to give the lowest bid relative to what you are offering. It is not always the absolute lowest number that wins. Your bit could be higher but also include better warranty service. You might have the lowest bid but the longest time to completion.
You have to realize there are some contracts you don't want. You could win a contract that ruins your business. If it is a contract that cannot be changed later due to budget, you will have to eat the costs if something comes up for which you didn't plan. You might also be on the hook for missing deadlines that were unreasonable in the first place. So part of winning a good contract is knowing which contracts are actually going to be good for your business. Use the software and services that help you win the bids you want. Don't just leave it to chance. Your competitors aren't.
Get Great Reviews
Not all contract work involves a bidding process. Working for consumers is usually a matter of getting the word out and getting great reviews from your previous customers. We shop in a different way than what we did in the past. If you are looking for a contractor and do a local search, you are not just going to click on the first one listed. You are going to click on that Yelp link and factor the reviews into your decision.
If your reviews are mostly negative, you will find it difficult to get new work. You have to manage your reputation because what people say about your work on review sites is your reputation. It can be difficult to overcome it. You might have a bad run of clients who are disgruntled because of things beyond your control. It doesn't matter that it wasn't your fault. If you can't come to equitable compromises, you will be overlooked when the next person needs the services that you provide. Master the art of getting positive reviews and you will have a decided advantage.
A Large Partner Network
Being a general contractor is a little like being a project manager. The importance of networking in project management cannot be overstated. You need a list of trusted partners that will get the job right, on time, and at a fair price. If you use shoddy subcontractors, the project will be wanted with low quality and you will be the one on the hook for the unsatisfied customers and ensuing bad reviews. That's why it's great to know what questions to ask your partners in advance.
General contractors risk a lot with every job they take. But they also stand to gain a lot if it all goes well. You can tip the scales in your favor by using tools that help you win the bid, mastering the art of getting good reviews, and filling your network with quality subcontractors.
