From Skyscrapers to Side Jobs: Finding Your Niche in Construction

In episode 81 of The Subcontractors Blueprint podcast, host Jacob Austin is explores the distinctions between large and small construction projects. He advises subcontractors on tailoring their commercial strategies to different project scales, emphasising profitability, cash flow management, and contract comprehension. Jacob discusses the complexities and risks of large projects, such as high-rise buildings, versus the quicker turnarounds and steady cash flow of smaller projects. He also highlights the importance of internal capabilities, marketing, and risk management. The episode aims to help subcontractors make informed decisions about the types of projects that best align with their business models.

 

KEY TAKEAWAYS:

•  Adjusting commercial strategies based on project scale
•  Timeframes for project completion and their impact on finances
•  Complexities and risks associated with big versus small projects
•  Cash flow management and profitability considerations
•  Marketing benefits of working on large projects versus smaller projects
•  Hybrid approach to project selection for financial stability and diversification

Link to the Cost Reporting Episode Mentioned in this Episode

 

BEST MOMENTS:

"The bigger and the more educated your client is, the more likely they are to try and tilt that contract in their favour."

You need to do your due diligence not just on the contract that you're appointed under, but on the client themselves that's going to pay the bills."

"Smaller projects might have less absolute risks. There's less people to impact if things go wrong, and that means less greedy mouths to feed when it comes to things like contra charges."

"Cash flow is really important to your business, so consider before you commit to doing a job that you can see it through to the end and remain financially stable."

"Don't be afraid to carve out a niche in one area if that's where you particularly excel, or perhaps maintain a smart blend."

 

Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.

HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.

LinkedIn - www.linkedin.com/in/jacob-austin/

Instagram - www.instagram.com/qs.zone/

www.qs.zone/all-links