476: How High-Profit Jobs Can Make Or Break Your Construction Company

<h1 style="text-align: center;"><span style= "color: #0000ff;"><strong>This Podcast Is Episode Number 476, And It's About How High-Profit Jobs Can Make Or Break Your Construction Company</strong></span></h1> <div>Knowing which jobs have the highest probability of success and profit before getting involved moves your construction company from an unpredictable roller coaster to a peaceful merry-go-round.</div> <div> </div> <div>You have what appears to be a high-profit job, and now you think you have it made, and I hope you are right!</div> <div> </div> <div>The problem is that high-profit jobs can turn into low or no-profit jobs. In some cases, they can bankrupt your construction company because you bid on the project using whatever model you are accustomed to using, and in the end, you wind up with cash flow problems.</div> <div> </div> <div> <p><span data-preserver-spaces="true">Many problems can be traced back to the "Halo Effect," which happens when a contractor thinks, "We are so good at (fill in the blank) we should expand into (fill in the blank). </span></p> <p><span data-preserver-spaces="true">The most common situation is when a residential remodel contractor who has built a reputation and a substantial company generating profits of 15% or more decides to start building custom homes. Or the opposite, a home builder who decides to branch out into residential remodeling.</span></p> <p style="font-weight: bold;"><span style="color: #0600ff;">Home Builder Doing A Residential Remodel</span></p> <p><span data-preserver-spaces="true">The processes, tools, equipment, materials, skills, and invoicing procedures required to modify a home with people living there are entirely different from building a house from the ground up.</span></p> <p><span data-preserver-spaces="true">New construction workers are more like cave people with a brute force mentality. If something doesn't fit or will not work the way they want it to, they use more brute force until it does. Every problem has one answer "Brute Force."</span></p>