BUILDING A SUCCESSFUL CONSTRUCTION COMPANY

“If a contractor understands which contracts are their most profitable, it makes sense to place more emphasis on them and pursue that particular field or client. This sounds obvious, but unfortunately some contractors don’t always know how much profit each project has made, nor have they analysed the reasons why some projects are more profitable than others.”

Quote from ‘Building a Successful Construction Company’.

A practical guide for building a successful construction company?

This book title definitely carries a big promise. No surprise then that my expectations of it going in were high and the pressure was on.

The author acknowledges the reality that some companies are successful while some struggle to stay afloat. The dynamics of delivering a project are challenging enough without the additional reality that you are in it to make a profit.

He starts off with a list of several things that could go wrong and with each item my heart sunk just a little, making me wonder why people found it enjoyable to start a Construction company.

He is the big brother who does not sugar coat the realities of life to you. With over twenty eight years experience in the Construction Industry, I was all set to soak in all the information he has to offer to save us from the associated business struggles.

This is not a book about Project Management, but one about how to make money as a Contractor in business. Starting from identifying the right clients and projects, winning profitable work and financial management. He dedicates two chapters on managing and growing your Construction company.

“Working on a project should not be about being employed. The only reason you want to be doing a project is so the company can make money, or occasionally so it can win further work which will make money.”

Cash flow has to be the number one challenge for Contractors. There are seasons when work is plentiful and a season when that tap runs dry. How can Construction companies plan for lean times and ensure continuity in their business? He gets into how to manage this and other associated cash flow issues to save your business from going under after a couple of successful runs.

He does not shy away from talking about corruption involved in some areas to win work, an unfortunate reality in Kenya.

It’s amazing how he can handle heavy topics such as Corruption and Cash Flow but also bring to the surface other light topics like how to have a great business card. He also gives a great example of how a site signboard can be free advertisement but when applied wrongly can hurt the reputation of the company.

The readability of this book is another win. He is not drowning you in long rambling essays. He splashes numbered lists that allow the reader to gloss over quickly with a checklist of sorts. For example, he gives a list highlighting items required for preparation and submission of variations and claims.

To push this even further each chapter is also concluded with a summary of numbered tasks in relation to the issues tackled in that chapter. Ending the book with an itemised list of tasks that guard the reputation of the company.

No judgement if you take a year or two to complete this book, it is packed with too much information for one sitting. This is the kind of book you get when you are thinking about starting your company or looking to change its fortune for the better. Best for you to read this guide slowly over time with emphasis on chapters that are relevant to you at that particular point of your career.

Think of it as your business partner in a book. Don’t sleep on this my dear friends.

I recommend getting this book, then pairing it with The Cafe Construct Podcast Season 02 Episode 13. We get into a candid discussion with two buddies and business partners on how they resigned from their 9-5 jobs to start a shared life long dream of co-owning their construction business and how they are faring three years down the line.

Addressing matters concerning maintaining a partnership, cash flow management, client acquisition, professionalism as a Contractor among other extremely beneficial tools for those who would like to take a similar path.

With the book and our podcast episodes, I can confidently say- Go forth and conquer.