Home » Blog » 10 Things Top Construction Companies Have in Common

10 Things Top Construction Companies Have in Common

Reading Time: 4 minutes
Picture of Megan Ng

Megan Ng

Alt text: A smiling Asian woman with long hair, donning round glasses and a floral top, situated in a circular frame against a plain background. She represents the persona of a user of Jonas Construction Software.

Megan is the Content & SEO Manager at Jonas Construction Software. She is fascinated with ConTech and is dedicated to providing educational content and stories to support the challenges and needs of construction and service businesses.

Last Updated on July 17, 2023

Sep 15, 2020

Estimated Reading Time = 5 minutes

The construction industry is volatile, with only 47 percent of companies lasting four years. While countless construction companies close their doors, others get bigger and stronger by the year. This has nothing to do with luck. The most successful companies share some traits that allow them to make money, even during economic downturns. Find out what traits these companies share and incorporate them into your own business.

1. Adaptability 

Top construction companies understand that adapting is part of the business. The contractors at these companies plan for each project while still understanding that unknowns can creep up at any time. Common variables include weather conditions and unmarked underground utilities, but anything can happen on a jobsite. The scope of the project can even change. The ability to adapt to change can turn a good construction company into a great one.

2. Commitment to Safety

The top construction companies do more than put up safety signs and use personal protective equipment. While that’s important, the best companies make safety a part of the culture. When safety is part of the culture, employees understand that following safety protocols is more important than efficiency. To make safety part of the culture, companies must embrace constant training, collaboration, and transparency, while also providing the best gear possible.

3. Embrace Technnology

Technology has changed the way companies in various industries conduct business. That includes the construction industry. Industry leaders have adopted technology to help them complete jobs. GPS technology allows companies to track employees, technicians, or equipment on jobsites. This cuts down on the time they spend looking for pieces of equipment, making them more efficient.

Industry leaders have also embraced drones to help them on jobsites. They use drones to survey land, surveil jobsites, improve safety, and more. Many believe that construction companies have only begun to see what drones can do for the industry. In the future, they could play an even larger role.

Leading companies have gone beyond implementing new technology and have also created new roles. Some of the most successful construction companies now have construction technologists on the payroll. Construction technologists empower employees by training them to use the different software solutions and tools that are now available.

4. Build a Diverse Portfolio

Far too many construction companies focus on a specific niche. That’s fine when there’s lots of work available, but the construction industry tends to ebb and flow.  When companies only offer one type of work, they can expect to experience dry spells. It’s hard to go weeks or months without jobs and still be successful, so the best companies expand their offerings and create a diverse portfolio of projects. Companies should not confine themselves to a specific niche or type of construction. Instead, they should embrace opportunities and bid on new projects. When they do this, they’ll discover that there’s lots of money to be made in construction. The trick is to open up to different types of projects.

5. Have Enough Capital to Seize Opportunities

Top companies understand the importance of seizing opportunities. If a key hire or an opportunity for an acquisition presents itself and the company cannot act, it won’t be competitive. To ensure that companies can take action, they must have enough capital on hand. Because so many construction companies live project to project, those with the extra capital can quickly differentiate themselves and become success stories

6. Have a low Turnover Rate

The construction industry has a 3.5 percent monthly turnover rate. The high turnover rate indicates some serious problems in the industry, including low employee morale. The best companies have managed to reduce employee turnover by providing a better experience for employees. Lower employee turnover makes companies more reliable and efficient. Also, it’s easier for these companies to attract the best talent. The best workers want to work for a company that appreciates them and provides a positive experience. Because of that, they are most likely to land at companies that have low turnover rates.

7. Use Robust Construction Financial Management Software Packages for Better Oversight

Poor organization is one of the top reasons construction companies lose money. Disorganization can lead to a variety of problems, including missed invoices and forgotten payments. Disorganized companies also tend to misallocate costs, making it impossible to track profits or losses on a per-project basis. When you combine these problems, it’s easy to see why so many companies don’t survive.

Successful construction companies avoid this problem by using robust construction financial management software packages to manage every aspect of operational and accounting tasks. The software has modules, including project management, document management, service management, accounting, and more. The software allows companies to manage the details while also understanding the big picture. This type of organization makes it easier to be successful.

8. Only Take on Profitable Work

Some construction companies get in the habit of saying yes to every project. The owners believe that they need to keep saying yes, so they can build their portfolios. However, they should turn down projects unless they are profitable. The right software can help with this, as long as your project management and accounting are under one roof. Companies should easily be able to see similar previous jobs, including variance between estimates and actuals and what the profit margins achieved were.

9. Experienced in All Phases of Construction

The most successful construction companies are turnkey operations. These companies can assist in each stage of construction, beginning with site selection and ending with the final occupancy approvals. Customers prefer a turkey solution since there is a single point of contact, allowing for smoother communication and improved efficiency.

10. Solid Risk Management Strategy

To be successful, a construction company must have a solid risk management strategy in place. The right plan protects customers and the company from potential risks. Successful companies determine all potential risks and create a plan to deal with them. Sometimes, risk can be avoided or transferred, but other times, the company might have to mitigate the risk. After determining how to deal with the risk, companies then choose a resource to handle it. While risk management doesn’t make risks magically disappear, it does make them less impactful

Embarking on the Road to Success

When you incorporate the best practices, you can begin to compete with the best in your industry. All companies have the ability to be successful. It comes down to adopting the best practices, so you can grow as a company

About the Author:

Cedric Jackson is a contributing writer. His writing draws on his rich life experiences, time spent traveling and years working with the written word. He is passionate about internet marketing, finance, travel and the construction industry. When not busy writing, he spends his time traveling, reading and keeping up with world events.

You Might Also Like

Alt text: A vibrant green emblem showcasing Jonas Construction Software's recognition as "2020 best construction management software for specialty contractors." Awarded by digital.com, a white stylized letter 'd' in a hexagonal frame is at the centre, signifying the digital platform.
Project Management

Jonas Enterprise Named Best Construction Management Software of 2020 by Digital.com

Last Updated on July 17, 2023 Dec 08, 2020 The software system was recognized among the most efficient solutions for planning, design, and full oversight ...
Learn More
Alt text: "A computer keyboard in sharp focus with the 'enter' key highlighted to represent Jonas Construction Account Software, set against a blurred city skyline at night, illustrating the software's application in the construction industry and urban development.
Service Management

3 Ways Information Technology is Transforming the Construction Industry

Last Updated on July 17, 2023 Nov 30, 2020 Today, the construction industry faces a variety of challenges that legacy workflows struggle to meet. From ...
Learn More
completed per technician," and a pie chart labelled "expenses breakdown."

Alt text: "Business analytics visualized using Jonas Construction Software; bar charts demonstrating conversion times and work orders completed per technician, a gauge chart showcasing total sales, and a pie chart breaking down expenses.
Service Management

12 Field Service Management Metrics to Help You Track Success

Last Updated on July 17, 2023 Nov 12, 2020 How do you know if your field service operations are successful? Are you keeping a close ...
Learn More

Search Our Resouces