By Lynn Pearcey, MBA, Copywriter, AIA Contract Documents
February 7, 2024
Table of Contents
Effective Brand Management
Positive Mindset That Embraces Change
Focus on Integrity
A construction contractor is defined as a firm or individual that works on construction projects on the basis of a contract. Builders are usually the ones that hire contractors to create any number of structures. From skyscrapers to single-family residences and large stadiums where professional teams play to elementary schools where small children learn, the scope of work for a construction contractor is broad.
Contracting in the construction industry can be a rewarding career, but it can also be challenging. The rewards a contractor reaps and the challenges they overcome along the way sets them apart. On the surface and to the naked eye, contractors might look similar using the same tools, verbiage, and protocols to govern and guide their efforts. But in reality, no matter how closely they may resemble one another, the truth is that not all contractors were created equally.
Why do some contractors start and stop, enjoying sporadic victories followed by a flurry of losses that bring them back to square one? By the same token, how is it that other contractors become the model of consistency, rising to, and maintaining a market-leading position while building a viable business and a roster of satisfied clients? What sets them apart, and most important of all, what are the characteristics of a successful construction contractor?
So glad you asked …
Effective Brand Management
Every business has a brand to manage, and that includes construction contractors. How well a contractor does in this area goes a long way in determining their success. With a strong brand, a contractor won’t have to go hunting for opportunities; those opportunities will go hunting for them. Architects, engineers, and other stakeholders also have brands and reputations to protect, and if they know they’re in safe hands with a contractor, hiring them to do the work is a no-brainer. The most valuable resource any business owner has is their brand. It speaks volumes about their service philosophy, the core values that shape their operation, and gives the end-user insights into what they can expect from a partnership. Brand management is critical and it’s a cornerstone to a successful construction contractor.
Proactive Mindset That Embraces Change
Successful businesses are renowned for being proactive, perfecting what stands before them while looking forward to the challenges that lie ahead. These truths encompass contractors, too, as the market leaders understand that the industry is evolving with fresh ideas and new ways of thinking being introduced at a rate never seen before. Technology was once a forbidden word on a construction site as pencils, paper, and elbow grease ruled the day. Those days when a contractor could exist solely based on those crude resources are long gone. With that, when the proverbial dust clears, the ones always standing, the successes are the ones who moved with a proactive mindset while embracing change.
Focus on Integrity
The argument can easily be made that integrity is the hallmark of any strong brand. Where there is no integrity, there is no trust, there is no word-of-mouth marketing that cost-effectively opens doors, there is no repeat business, and there is, in effect, no brand. Construction contracting often comes with slim margins, and the urge to cut corners, tip the terms in their favor, or stretch a dollar is always present. The contractors who refuse to cave in and instead use integrity as their compass are the ones who routinely see repeat business, revenue, and profit growth while earning the trust of the core customers.
Payment delays are a challenge most entrepreneurs have faced at one time or another, and that includes construction contractors. The seemingly never-ending cycle of signatures and approvals, red tape, reviews, and submissions can send a contractor into a financial freefall that can take years to recover from, if ever. Building a strong financial infrastructure means sound billing and payables management. It also means integrating solutions into the business that safeguards against fiscal disasters and expedites payments.
When it comes to being a successful contractor there are so many factors that come into play. They understand the role of branding and how to build one based on integrity and sound business ethics. Successful contracts aren’t averse to change and in fact, they embrace it, understanding that as the industry evolves, their business must do the same. And when it comes to finances, contractors large and small realize that activating proper controls in this area is a must. One other thing that successful contractors understand is the power of AIA Contract Documents. The tools offered through AIA are rooted in integrity, fairness, and created with all parties in mind. On the leading edge with next-generation software and solutions has become a hallmark of our existence and we’re committed to remaining true to these ideals. If you’re a new contractor, start with us. If you’re an existing contractor, stay with us.
It’s what successful contractors do.
AIA Contract Documents software allows you to efficiently create, share, and manage the industry’s leading construction documents. Request an ACD5 Product Demo Here.
AIA Contract Documents has provided this article for general informational purposes only. The information provided is not legal opinion or legal advice and does not create an attorney-client relationship of any kind. This article is also not intended to provide guidance as to how project parties should interpret their specific contracts or resolve contract disputes, as those decisions will need to be made in consultation with legal counsel, insurance counsel, and other professionals, and based upon a multitude of factors.