Building a Strong Contracting Business: Insights from the Field
Running a successful contracting business is about more than just swinging hammers and pouring concrete. It’s about understanding the nuts and bolts of business operations, building strong relationships, and adapting to the ever-changing landscape of the construction industry. In this article, we’ll explore the foundational elements that can elevate your contracting business, drawing on real-world experiences, expert advice, and the unique perspectives of industry professionals.
The Importance of Contracts in Construction
Demystifying Contracts: More Than Just Paperwork
Contracts are the backbone of any construction business. They define the scope of work, set expectations, and protect both parties from misunderstandings. Yet, many contractors view contracts as intimidating legal documents, filled with jargon and fine print. The reality is much simpler.
At its core, a contract boils down to three essential elements:
- Terms: What is being agreed upon? (e.g., “I will paint your room for $1,200.”)
- Acceptance: Both parties agree to the terms, often with a signature or handshake.
- Consideration: Something of value is exchanged (usually money for services).
Surprisingly, even a verbal agreement can constitute a legally binding contract if these three elements are present. This means that casual conversations, text messages, or even a handshake can create obligations—sometimes without you realizing it.
Protecting Your Business: The Two-Way Street
Contracts aren’t just about protecting yourself from clients; they also safeguard your clients from you. A well-drafted contract ensures clarity, sets boundaries, and provides a roadmap for resolving disputes. It’s not about creating adversaries—it’s about documenting mutual understanding.
However, it’s crucial to be aware of the nuances. For example, the difference between “negligence” and “gross negligence” in a contract can have significant legal implications. Gross negligence refers to extreme carelessness, while simple negligence could be as minor as missing a delivery. Tightening up language in your contracts can prevent costly misunderstandings down the road.
Change Orders and Communication
One of the most common pitfalls in construction contracts is the handling of change orders. Any modification to the original agreement—whether it’s a new paint color or an additional room—should be documented as a separate contract or change order. Failing to do so can lead to disputes, delayed payments, and even legal action.
Clear communication is key. Make sure your salespeople and estimators understand the power of their words and the potential to inadvertently alter contracts through casual conversations or texts.
Waste Management: The Hidden Engine of Construction
Beyond the Dumpster: The Complex World of Construction Waste
Waste management is an often-overlooked aspect of construction, but it plays a critical role in project efficiency, environmental responsibility, and even profitability. Nicole Wilson, a construction account manager at GFL Environmental, sheds light on the intricacies of the industry.
From early morning pickups to landfill operations, there’s a lot more to waste management than simply “throwing it away.” Drivers, landfill managers, and recycling coordinators all work behind the scenes to keep job sites clean and compliant.
Recycling and Sustainability: The LEED Certification Journey
Sustainability is becoming increasingly important in construction. LEED (Leadership in Energy and Environmental Design) projects are on the rise, especially in states like California and in Canada, where recycling and green building practices are more established.
GFL Environmental stands out by offering comprehensive recycling solutions for construction sites, including the ability to certify the recycling of wood, concrete, metal, and gypsum board. This not only helps contractors meet LEED requirements but also positions them as environmentally responsible builders.
Achieving LEED certification involves meticulous sorting of materials—either on-site by the contractor or off-site by the waste management company. While this can be a daunting process, it offers significant value for builders looking to differentiate themselves in a competitive market.
Practical Tips for Contractors
- Don’t Overload Dumpsters: Overfilled dumpsters can lead to regulatory violations and unhappy drivers.
- Follow Local Regulations: Business days, right-to-cancel periods, and recycling requirements vary by state.
- Embrace Recycling: Even if full LEED certification isn’t feasible, recycling concrete, metal, and other materials can reduce costs and environmental impact.
Women in Construction: Breaking Barriers and Building Community
The Rise of Women in Construction
The construction industry has long been male-dominated, but that’s changing rapidly. Organizations like the National Association of Women in Construction (NAWIC) are empowering women to take on leadership roles, build networks, and support each other in navigating the unique challenges of the field.
Nicole Wilson, a board member and director of the Oklahoma City NAWIC chapter, highlights the rapid growth and camaraderie among women in the industry. Monthly luncheons, socials, and guest speakers provide opportunities for learning, mentorship, and professional development.
Overcoming Stereotypes and Embracing Diversity
One of the biggest hurdles for women entering construction is the fear of not fitting in or being accepted by male colleagues. However, the landscape is shifting. More men are recognizing the value women bring to the table—organization, attention to detail, and a relentless drive to get things done.
Physical strength is often cited as a barrier, but as Nicole points out, many women are more than capable of handling the demands of the job. The key is to focus on skills, attitude, and work ethic rather than outdated stereotypes.
Advice for Contractors: Why You Should Hire Women
- Diversity Drives Results: Companies with women in leadership roles often outperform their peers in profitability and customer satisfaction.
- Women Get Things Done: From managing job sites to coordinating logistics, women bring a unique perspective and organizational prowess.
- Expand Your Talent Pool: With labor shortages plaguing the industry, tapping into the female workforce is not just smart—it’s necessary.
If you’re hesitant to hire women for field roles, Nicole’s advice is simple: “Do it. Let them prove you wrong—they will.”
The Value of Community and Professional Growth
Building Networks and Supporting Each Other
Construction is as much about relationships as it is about technical skills. Whether it’s through professional organizations like NAWIC or informal networks, having a support system can make all the difference.
For women, in particular, these networks provide a safe space to share experiences, seek advice, and celebrate successes. They also offer resources for career advancement, from resume workshops to leadership training.
Encouraging the Next Generation
Nicole’s personal story is a testament to the power of mentorship and encouragement. Her daughters are following in her footsteps—one as an electrical apprentice and another studying civil engineering. By supporting and inspiring the next generation, industry veterans can help bridge the skills gap and ensure a bright future for construction.
Emerging Trends and the Future of Construction Waste
Technology and Best Practices
While waste management may seem like a static industry, it’s evolving rapidly. New technologies and best practices are emerging, particularly in recycling and sustainability. As more states and municipalities adopt stricter environmental regulations, contractors will need to adapt by:
- Implementing On-Site Sorting: Separating materials at the source to streamline recycling.
- Partnering with Innovative Waste Companies: Working with providers like GFL Environmental that offer advanced recycling and certification services.
- Staying Ahead of Regulations: Proactively preparing for changes in local and national waste management policies.
The Human Element: Recognizing Unsung Heroes
The COVID-19 pandemic highlighted the essential role of “forgotten workers” like truck drivers and waste collectors. These individuals keep job sites running smoothly and deserve recognition for their hard work and dedication.
A growing trend is tipping or gifting trash truck drivers during the holidays—a small gesture that goes a long way in showing appreciation.
Lessons Learned: Mistakes and Growth
The Value of Experience
Every professional makes mistakes, but the key is to learn from them. Nicole reflects on her own journey, wishing she had discovered the trades earlier instead of following the traditional college path. Her advice to others is to consider alternative career paths, embrace lifelong learning, and never be afraid to try something new.
Bring Back the Trades
There’s a growing movement to “bring back the trades” and encourage young people to pursue careers in construction, plumbing, electrical work, and other skilled professions. These jobs offer stability, good pay, and the satisfaction of building something tangible.
Practical Takeaways for Contractors
- Simplify Your Contracts: Focus on clear terms, acceptance, and consideration. Don’t overcomplicate things, but make sure you’re protected.
- Document Everything: Verbal agreements and text messages can be binding. Keep records of all changes and communications.
- Embrace Sustainability: Recycling and LEED certification aren’t just buzzwords—they’re opportunities to stand out and save money.
- Support Diversity: Hiring women and fostering inclusive workplaces leads to better results and a stronger industry.
- Appreciate Your Team: From drivers to project managers, every role is vital. Show gratitude and invest in your people.
- Stay Connected: Build networks, join professional organizations, and never stop learning.
Conclusion
The construction industry is evolving, and so must the businesses that operate within it. By focusing on strong contracts, responsible waste management, diversity, and community, contractors can build resilient, successful companies that stand the test of time. Whether you’re a seasoned pro or just starting out, these insights offer a roadmap for growth, innovation, and lasting impact in the world of construction.