Are you struggling to get commercial construction projects? Contrary to popular belief, it doesn’t have to be challenging. Here are some tips to help you secure more leads, jobs and help your business flourish. And if you’re new to the industry or currently work in residential construction, there are also tips to break into the commercial construction industry.
Billd Commercial Construction Financing
How Can You Find Commercial Construction Contracts?
Keep these ideas in mind as you search for commercial construction contracts:
1. Pursue Jobs as a Subcontractor if You are a General Contractor
Even if you’re a general contractor, you could unlock the door to more opportunities by pursuing work as a subcontractor. Suppose you’re hired to complete a job. In that case, you’ll already have the contacts in place to perform the work on your behalf. You’ll only be responsible for ensuring projects are completed on time and materials are managed effectively.
2. Use Commercial Lead Generation Services
Instead of doing all the research on your own, consider using a commercial lead generation service to do the legwork for you. These companies help connect contractors with clients who are currently accepting bids for projects.
If you’re working with a shoestring budget, sign up for platforms that offer free trials and capitalize on the opportunities to bid until you’re up and running.
3. Sign Up for Government Construction
Both federal and local governments always need contractors to complete projects. Learn more about government contracting and search for federal contracting opportunities by visiting USA.gov.
4. Ask Your Contacts in the Commercial Construction Industry for Referrals
Are you connected with others in the commercial construction industry? Reach out to inquire about current or upcoming projects. They may be aware of projects that don’t fit into their busy schedule or with a scope of work that could be a good fit for you.
5. Attend Networking Events and Trade Shows to Make New Contacts
Network with architects, developers, realtors, interior designers, property managers and other general contractors to keep a pulse on current and upcoming commercial construction projects in your area. You can also connect with 3D rendering companies, construction management firms, suppliers, vendors and mortgage brokers to get leads.
Billd Commercial Construction Financing
How Do You Break into Commercial Construction?
Breaking into this industry doesn’t have to be overwhelming. By following the proper steps, you can set your company up for long-term success.
Start a Commercial Construction Company
Consider taking these pertinent actions before pursuing commercial construction jobs:
- Write a business plan
- Decide on a business structure
- Apply for an employee identification number (EIN)
- Register is a business in your state and locality (if applicable)
- Get insurance coverage
- Hire a bookkeeper
- Hire a certified public accountant (CPA)
- Hire the right employees
- Hire an attorney to assist with workplace agreements and project-related contracts
- Create pre and post-construction project checklists
Do construction companies make a lot of money?
On average, construction company owners earn $80,700 annually. This equates to $39 per hour, notes ZipRecruiter. However, the amount your company can earn depends on your location and the number of projects you take on.
What type of construction is most profitable?
Both commercial and residential construction is profitable. However, the level of profitability for each depends on market conditions. When there’s a demand for new homes, residential construction profits usually outperform commercial construction. But when there’s a dip in housing demand, commercial construction projects are generally more profitable.
Transition from Residential to Commercial Construction
Are you ready to make a move from residential to commercial construction? It’s a transition that can be quite lucrative if done correctly. There are some critical differences between the two sectors to be mindful of:
- The bidding process is more involved, and it’s often challenging to win jobs.
- Architects have rigorous standards and are particular about what materials can be used on the project.
- Commercial building codes are more complex.
- Scheduling can be challenging as there are several parties involved in commercial construction projects.
- The insurance and licensing insurance requirements are more stringent for commercial construction projects.
- There is a substantially higher amount of documentation required for commercial construction projects.
- You’ll likely need a higher volume of materials on commercial construction projects.
How does commercial construction bidding work?
There are many lead generation and commercial bidding websites that make it easy to find jobs. But to increase your chances of winning a bid, bid on public projects or offer to become a subcontractor for a general contractor or larger subcontractor. You can also join the local contractor’s association to network or submit proposals to complete interior finish-outs.
How do you make money in commercial construction?
It’s not uncommon to get off to a rocky start in commercial construction. In fact, you’re likely to face several rejections before winning your first contract, and the profit margins could be smaller than what you’re accustomed to with residential construction. The upside is commercial construction projects tend to be larger in scope, so there’s a greater opportunity for growth over time.
How Do You Finance Materials for New Commercial Construction Projects?
As mentioned earlier, materials for new commercial construction projects can be costly. This is especially true when you’re transitioning from residential to commercial jobs that require far more supplies to complete.
Luckily, you can leverage an alternative payment solution, like Billd, to take the stress out of covering commercial material costs. The supplier gets paid right away, and your company gets 120 days to repay Billd.
Here’s how it works:
- Enroll with Billd. Enrollment is open to commercial contractors and material suppliers, and you could get approved for materials financing in just 24 hours.
- The contractor purchases the materials needed for the project from the supplier of their choice.
- Billd pays the supplier directly for materials before they are shipped to the contractor.
- The contractor pays Billd for the materials within 120 days. (Quick note: Expect a purchase fee on weekly payments until you pay the balance off).
It’s that simple, and the enrollment process only takes a few minutes. So fill out this form today to request enrolling with Billd for free.