It’s easy to get lured in by the profit potential of larger jobs, but without the proper preparation and tools, that profit can quickly turn into a loss.
It’s easy to underestimate the manpower and management required to run a large project efficiently. As a company specializing in remodels costing $250K and up, we’ve found that on jobs exceeding $750K, the complexity can quickly wreak havoc on the project, your company, and your bottom line.
Here are a few steps for growing the size of your remodels without overwhelming your company:
Inventory Company Resources
Field experience and technical knowledge are key on large jobs. Take stock of your team’s experience, strengths, specialties, and ability to handle obstacles. You might have a team and enough subs for a two- bathroom project, but not nearly enough manpower and know-how to complete a four- or five-bathroom project.
Even more critical are your employees’ communication, planning, and problem-solving skills. Larger projects means your team must know how to effectively talk to one another, the suppliers, and the clients while also keeping an up-to-date schedule and tackling any unforeseens that arise. That intensified level of project management is not in everyone’s skill set, so evaluate your team honestly before agreeing to a larger project.
Using a CPM breaks down complicated jobs into an easy-to-read visual that shows how much time each stage takes and which activities need attention when.
Draft a Detailed Plan
Our construction timelines are tailored to each job, and the production manager heads the process, working with the superintendent and on-site team to create a detailed critical path method (CPM) plan. Using a CPM breaks down complicated jobs into an easy-to-read visual that shows how much time each stage takes and which activities need attention when. The CPM is updated as we progress, and helps give clients realistic expectations for a project’s completion date.
Clients who are investing more in a project expect a higher level of communication. Weekly meetings with the client are critical for managing the schedule and expectations. Any further communication is decided upon between the client and the job superintendent. Learn your client’s preferences and stick to them.
If your projects are typically $50K-75K, try a $200K project before making the jump to, say, $500K. As you get a few of those under your belt, determine what’s going well and what still needs improvement. An error made on a $200K job can be remedied more easily than a comparable mistake on a $750K job. Not only is there less revenue at stake, but when you approach those higher price points, you’ve often got site work and heavy structural elements to handle.