How to Manage a Construction Company
Successfully managing a construction company is a multifaceted undertaking that requires knowledge of common business practices, accounting principles, regional economic conditions and expertise in the building process. As long as people continue to buy new houses, update existing homes and open businesses, construction companies will have clients.
A company’s reputation is only as good as its finished product. Most construction workers learn their trades through on-the-job training. Important management duties include hiring, firing, training, and disciplining and conflict resolution.
Construction is expensive, and most construction companies and their clients find it necessary to secure outside financing. In a large construction company, a financial office might be responsible for developing the business plan, but a general manager should still understand the company’s financial needs.
Internal Revenue Service gets its share of the earnings. By delegating business tasks, the construction manager is free to devote more time to bidding, client and worker interaction and job site duties.
A successful manager understands the construction process and provides team leadership and supervision for workers in the field. No matter how large or small the company is, it will run more efficiently if it has a workable structure that provides a set chain of command.
Satisfied clients are a construction company’s bread and butter. An efficient manager knows how to smooth over the rough spots and keep clients happy. Good communication skills are essential to effective management. The successful manager will counsel clients in their options; answer questions.
Problem-solving and decision-making skills are essential for construction company managers, who must be able to minimize conflicts and keep projects running smoothly.