Construction is a tough business. I am in a lot of offices and I see companies that are thriving and I see ones that are fading away. Here are some warning signs that more than likely a company is heading into rough waters.

  1. Accounting is a mystery to everyone. When I hear “we don’t ever talk to accounting” warning bells go off.  And it should. Good accounting is a key as the excavator is out the field. It can’t be ignored and it must be mastered and made a key component of management.
  2. Quantity takeoff is still manual even with all the software tools available today to do good and fast takeoffs.  I get it that every now and then it is faster to do a takeoff by hand but taking off for example utilities for a subdivision?
  3. Estimating is still done on paper or on Excel.
  4. There is no attempt to update the main office with up to date furniture (standing desks) and ergonomic chairs.  I have been in offices that have not been touched other than cleaned for 30 years or more.  Depressing to those who work in those surroundings.
  5. Everyone in key decision making positions are pushing retirement age.  There has been no attempt to recruit younger talent. I remember being at a very large (publicly traded) main office of construction company and seeing that a majority of employees were pushing retirement age and beyond. Sure enough the stock of that company has plunged. Experience is great but a construction company also need young (and healthy) employees.
  6. Upper management has nothing to do with estimating and doesn’t even understand the tools that the estimating department uses.
  7. One employee has their hands in about every aspect of the business. I have been at companies where the chief estimator was also the IT director and pretty much ran the accounting department. At another company the chief estimator also was in charge in printing all the plan sheets for the field. Diversify responsibilities and the company will be stronger for it.
  8. Every day is crisis management with no time taken to plan and execute.

Those are just a few lessons I have learned observing companies over the 20+ years I have been a HeavyBid trainer. As a trainer, I get to see more construction companies than most 3rd party vendors. So my advice is if you are an owner take a step back and look over your company with a critical eye and resolve to keep your company up to date not only with technology but with modern business methods.