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  • Writer's pictureYvonne Root

The 3 Rs of Construction Contracting




As part of a recent post concerning transparency in your construction business we said, “The best way to avoid anxieties or suspicions is to provide information. The holy grail of construction business information is found in the three Rs.”


We listed them as follows:

  1. Reasonable pricing

  2. Realistic timelines

  3. Reliably performed actions


Have you noticed that the construction industry doesn’t fit easily into a single business category? While you’re a mobile manufacturing company, you’re also a part of the service industry. Additionally, your construction company takes on aspects of a retail business with markups on materials.


So, how do you proceed when you have the daunting task of meeting expectations concerning the 3 Rs?


Reasonable Pricing

Reasonable pricing is straightforward.


The outcome of reasonable pricing means:

  • The client is provided with something tangible that they need and can afford.

  • You can give something meaningful to your community – not limited to but including the paychecks you provide for your employees or subs.

  • You take the risks and are rewarded by making more than you spend – a profit.


Realistic Timelines

Your team may have many factors going for it – good planning, excellent strategies, adeptness, and above-average capabilities – but other factors can and do come into play when thinking about realistic timelines.


Some timelines are disrupted by one or more things on the following list.

  • Unusual inclement weather

  • Natural disasters

  • The efficiency (or lack thereof) of other subs or trades

  • Multiple change orders

  • Supply chain disruptions

  • Theft of tools or materials

  • Death or disability of a key team member


As you know, realistic timelines can be disrupted by many factors. Yet the most crucial determinant of meeting a deadline depends on the practical thinking of all parties involved.


Whether it turns out to be a situation where everyone is affected (like natural disasters or weather,) or it is a problem only your team faces (such as the theft of tools,) the best way to begin a process for deadline resolution is to communicate with everyone who is affected.


Some handy ways to deal with disruption factors include:

  • Having the right amount and type of insurance

  • Cross-training of employees

  • Documented plans for dealing with supply chain issues

  • Drawing the owner or GC’s attention to non-performing subs

  • Using your profit account to replace stolen items while awaiting settlement with your insurance provider

  • Asking for grace – and being prepared to give grace when warranted


Reliably Performed Actions

It’s your history.


It’s your business acumen.


It’s your integrity.


Your construction company’s ability to perform reliably is tied directly to reasonable pricing and realistic timelines. Yet there is more to the story. Your ability to bring excellence to all your construction endeavors depends on what you do, such as:

  • Meeting your obligations

  • Owning your mistakes

  • Going the extra mile


And it depends on what you don’t do, like:

  • Cutting corners

  • Giving or receiving bribes

  • Blaming others


Bringing it All to the Table

Getting winning bids, satisfying clients, and growing your construction business hinges on your determination to provide reasonable pricing, support realistic timelines, and perform reliably. It’s the 3 Rs of construction contracting!


Reflection: What can you do to improve your 3 R strengths?



Ambitious Construction Contractors look to The Profit Constructors to provide advocacy in dealing with:


  • Clients and customers

  • Employees and subcontractors

  • Vendors and service providers

  • Governmental entities


Working with The Profit Constructors gives Construction Contractors the means to organize their operations in ways that help them:


  • Remain informed

  • Avoid hassles

  • Reduce risks

  • Be future-ready


Ready for action? Or want to know more? Get in touch today to schedule a complimentary discovery call. 866-629-7735

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