When you stop estimating, you’ re essentially hitting a pause on future opportunities.
rely on you for proposals. If you stop providing proposals for, let ' s say a year, you won’ t be top of mind and you’ ll soften the strong relationship you once had which took you many years to build.
Charge Higher When Demand is High
When work is flowing in, that’ s your chance to boost your profit margins. Clients know the market is competitive and that quality contractors are in demand. Take advantage of that! Charge a bit more for your projects. Don’ t undersell yourself just because you’ ve got enough work for now. Trust me, you’ d be surprised at how often clients are willing to pay more if it means they get topnotch work done on time.
Back off aggressive unit prices, increase your profits and stay away from price negotiating. I’ ve personally run a project where we submitted a high number during a busy time, and guess what, we got awarded the project, made a ton of money and it was the least stressful project I was ever on!
Look at these higher-priced projects as an insurance policy against future slowdowns. The more you save during the busy years, the less stress you’ ll feel when things get quiet. And if you happen to land a big project, that’ s a great opportunity to train some of your newer team members and boost your team’ s morale.
When you stop estimating, you’ re essentially hitting a pause on future opportunities.
It’ s also important to not ruin existing relationships you’ ve spent many years building during this time. Be honest with general contractors or owners whom you’ ve worked with in the past— and even new clients— and let them know you ' re busy. Open communication and honesty are always the best policy!
Be Smart About What Projects You Take On
In busy times, there’ s a temptation to take on every job that comes your way. But just because you can doesn’ t mean you should. When you overcommit, you run the risk of stretching your team too thin or compromising on quality. Worse, if the work slows down, you might find yourself overstaffed and struggling to keep everyone on board.
Being selective is a good thing. It lets you focus on the projects that bring in the most profit and match your company’ s strengths. Remember, a packed schedule doesn’ t always mean high profits. Sometimes, it’ s better to turn down a project if it doesn’ t fit your goals or if it would require you to overextend your resources. After all, keeping your reputation solid and delivering quality work is more valuable in the long run.
Train Your Team to Handle the Load
Busy periods are a perfect time to develop your team. If you’ re winning more bids than you expected, use it as a chance to train newer project managers, supers and foremen or help your junior staff step up. Not only does this prepare them to take on more responsibilities, but it also strengthens your whole company. A team that can handle challenges together, learn on the job and build skills is a huge asset.
Delegate larger responsibilities to less seasoned managers and help mentor them. When you bid on less profitable work, you’ re so worried about losing any kind of momentum. You now have the financial breathing room to do so.
If you’ re worried about overwhelming your crew, start small. Bring your junior project managers into the fold on larger jobs, pair them with seasoned leaders and make sure they feel supported. This way, when you need them to step up
12 January 24, 2025 www. contractorshotline. com