How to Get Work as a New Construction Company

Being a new construction organization is tremendously difficult. I'm sure this is the case for being any kind of new organization, but construction has a unique set of challenges. These challenges become even more trying during poor economic times and in the construction climate we are in now, the likelihood of a new company getting work becomes darn near impossible.

I've been experiencing these challenges first hand over the past couple months, and I can say that it is certainly as difficult if not more than anybody could really imagine. However, the reality remains they everybody is out looking for work and there are ways to do this. The process just isn't very easy.

Above anything else, a network of potential clients is probably the most advantageous resource for a new company. If there are people for whom you have delivered work in the past while working for another company, a new firm can approach these folks and try to drum up some business. The potential client will have a better feeling about this new firm because, although they are new, there is at least some history of past performance which will establish some confidence in the mind of the client. So that's avenue number one - hit up your past clients.

But what if your network is sparse because you are in a new area or you are working in a slightly different market than one you have worked before? Well, this is where you need to pound the pavement like a marathon runner. You also have to explain to any potential clients what features and benefits your company offers. Construction services are not a commodity, they are unique to every organization. Your company must have a competitive advantage in the marketplace in order to get off the ground. Of course low price can be one of these advantages but there also has to be more. Something creative, something new, something to differentiate yourself from the ranks of ho-hum organization doing similar work.

The next challenge becomes finding clients that have money to do construction work. In this economy finding construction projects is much more difficult than running a marathon and is more along the lines of running an Iron Man Triathlon - and it takes much longer. I recently subscribed to a construction lead service which basically does research in the market and compiles all potential work in one place. I like this in theory, because you at least know there is money available to do these projects and while I have yet to land a job in this fashion, I sure as heck ain't gonna stop tryin'.

And of course there is always the competitive bid on public projects route to obtaining construction work. This game is ruthless. I went to the pre-bid meeting for a waterproofing job about a week ago and there were probably twenty-five companies bidding this thing. The project value is probably around $100k. The owner then has the luxury of disqualifying bids of companies that they don't feel to be qualified for the work. This is of course a very subjective topic, and when they have this many bidders, their standards become much more strict. Then there is of course the problem of bonding. These projects all require bonds and a bonding company can be just as selective with who they bond as an owner can be with who they qualify.

So to sum it up, it's difficult, not impossible, but difficult. I suppose persistence is the key, but you will certainly be no stranger to a strong dose of frustration.

How to Get Work as a New Construction Company