Contracting to Commercial Construction: What You Need To Know

About the Author: Ashley Thomson
Ashley Thomson

Commercial Construction Contractor
Ash’s notes for coaching businesses that contract to commercial construction

Commercial construction is a tough market, you need to get great at:

• Numbers
o Accurate billable hours versus quoted hours
o Accurate take offs and quoting
• Financials
o Job profitability reporting throughout the job so you know whether you are on track and over/under by how much
• Contracts
o Understanding: liquidated damages, variations processes

Niche =
• The work you do, try to do the same type of work each time
o i.e. a client that specialised in medical centre fit out – ‘body protect’ work
• The builder you work for, so you learn their systems
o A builder a client worked for on Aldi stores – Mainbrace, PM lost his bonus because contractor payment was delayed by several days due to him not submitting paperwork on time
• The PM you work for so you can align with a good operator
o One who is organised, has a schedule and respects that contractors want to get in, do the work and get out

Chargeable rate calculator is really important to know exactly what your guys are costing you

• Be wary of outsourcing more than just take off and counts
• Estimator is motivated to complete the quote quickly, no bonus for accuracy
• Overseas or local outsourced estimators

• Maybe not your guys on the jobs as PMs across 2 or 3 jobs
• Maybe train up current guys and get the reporting structures in place so that you know where they’re up to at all times, handle client interaction from remote