How to expand a construction business.

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R

R.T.C

  • #1
    I have recently taken over my Dads construction business, he ran a very successful construction company back in the 80's 90's employing over 20. But as times moved on and public sector work became a case of showing your self on paper and not on site, he started to struggle. He's far from a office based manager! and was always hands on old school you could say!

    So the last two years I have taken a keen interest in the business and tried my best to expand the company bearing in mind Im only 23.

    This year has been very successful, we have obtained BS8555 Waste management and also ISO 9001 Quality Management system, these hopefully will become a great advantage when tendering for public sector works.

    Where do I start to look for extra work? We cover most aspects in the construction such as Refurbishment, Disabled adaption works, New Builds, extensions and so on.

    Advice would be great on how we can move on with the business.
     
    M

    Merchant UK

  • #2
    I always find a good source is previous clients and customers, get in touch they may had extra additional work. i'm pretty lucky the bulk of my work in repeat work from a selection of clients that use me.

    Get in touch with them and ask if you can quote for any new or existing works

    Have you tried registering with he tendering websites? also your local authority could be a goldmine if you register with them
     
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    R

    R.T.C

  • #5
    Thanks for the above comments, I recently built a website for the company.

    Also where based in south wales which is not the richest part of the UK.

    Many people have said send flyers out ect, but to me that seems being desperate for work which where not?

    The only successful Construction companies near to me are the ones who have won public sector contracts with the council. The managers of these companies always seem to be "office people" I suppose they have a great advantage when its comes to public sector tendering.
     
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    H

    Holcombebuilding

  • #6
    This is something I am familiar with owning a building company myself.

    Ultimately for me, public sector work was a sealed box I let other beg, buy into or dream about. I simply do not want to spend my time chasing this type of work when my time spent in building services has produced a massive increase in business.

    The company started out in remediation and condensation control, and did well!!

    I rolled out the formula and systems into general building work with the assistance of a marketing company, it was a massive amount of money, however it came back and then some!!!

    Initially the company made (for me in extracted wages) 50k a year, triple that in a timescale of 7 months!! just spreading my time across work that is indeed general.

    Extensions, new builds, listed restoration, lime plastering etc etc.

    The core of the business remains remedial. However private sector money is still there, and the whole cowboy builder attitude to men rocking up in rusty vans has been great, the image and precessional feel to our company have won countless large scale works with margins sometimes up to 50%

    You will need to structure properly though or the staff will run rings around you.
     
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    R

    R.T.C

  • #7
    Its always nice to hear from other Building Companies. I would love to say goodbye to public sector work, but I now the company would not survive without it. Next month we find out weather we have won a four year framework contract without that where finished.

    I take it with you being in Manchester theres more work around within the Private sector. At one time we did leave the public sector all together and were very busy on new builds when the economy was good.

    Im keen to find out which way you found best for advertising. How did you target the private sector market? Thanks
     
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    H

    Holcombebuilding

  • #8
    We are based in Manchester, however my first port of call was to simply advertise nationally through a very effective google campaign, everything advertising wise is based online.

    National advertising raised enquiries to the point of the phones ringing off the hook, it was extreme!!

    My view at this time was to simply structure to this, but in key ways. I utilised quite a hard push to get a sales man/surveyor in key locations in defined districts or counties.

    It wasn't easy and expensive as well but ultimately the foot remained full throttle and it all came together.

    If you want the finer details I am willing to share the initial steps but via private message.
     
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    PDRD

    PDRD

    Free Member
    Sep 13, 2012
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  • #9
    We have been finding government sector jobs to be a closed shop. You can tender all you like but the job always goes to the current approved contractors. To prove this I tendered a recent MOD job at a 10% loss and then took a call to say they have gone with the current favoured contractor. :mad:

    Sent from my GT-I9305 using UK Business Forums
     
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    H

    Holcombebuilding

  • #10
    Ultimately government or local authority contracts are not simply handed out to the cheapest contractor. It doesn't work like the private sector.

    In your tender, the appropriate person has about 3 major factors in mind, 1 regarding the local authority: We cannot make a profit in our budget or we will lose next years set budget. We cannot go over budget as we will not have the money to complete, front page news, lose my paid fully for absence job, with with 10 weeks paid holiday and hide in a room with absolutely no daily pressure for £38k a year plus pension.

    The second, given these facts, can the contractor complete can the contractor tick all the required trade association requirements, can they show tangible evidence of three successful years trading at the level of said project value in the private sector?

    Three, as a throw back from the days when these contracts could be cash bought if you knew the appropriate people, we have a list of contractors fully versed in every requirement and working process we require, let's just stick with what we know!!!!!!! Tender the contract to remain legal however!!

    It's a locked door. Death retirement or purchase is the only way in.
     
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    B

    businessfunding

  • #11
    A lot of food for thought here

    You mention that flyers look desperate - I would mostly disagree

    Good promotion (by any means) looks professional - bad promotion (we do all work, we beat any quote etc) looks desperate

    Pick a sector or segment that you particularly want to work in and purvey yourself as a leader in that segment - new builds, extensions, industrial - you will know the segments far better than I do.

    You could either drop the Public Sector stuff or continue to build your presence and contact base as future investment - as has been said, there is a lot of 'who you know' involved.
     
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    CPSMedia Carl

    CPSMedia Carl

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    Oct 18, 2013
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  • #14
    Personally I will echo what others have said here about a strong online approach, you can still be going after the public sector work, but by getting a good marketing startergy you can get your self infront of the private sector also.

    If it were my business, I would concentrate on a solid content stratergy and also paid search, this would be with the aim, that whenever someone searches about any service you provide, you appear.
     
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    theBagShoppe

    theBagShoppe

    Free Member
    Nov 22, 2013
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    Bradford
  • #17
    In my opinion, you should increase your online presence and specially integrate with your social media with your site. You can start a campaign on Facebook and see the results. Offer Special offers on FB. Offer Deals, get surveys, Polls from individuals who are moving to new houses, they would need refurbishment or extra jobs.

    PPC ads on FB should do the great job in your business but you need right point to hit!!
     
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