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Construction Firms

Construction firms often face job-by-job risk, labor constraints, and intense pressure on bids and margins.
We help owners build a more predictable, systems-driven business that can scale or transition.

Construction Client:
From Volatile Jobs to Predictable Margin

  • A $16M regional general contractor specializing in commercial interiors struggled with uneven job-level profitability and a backlog that swung sharply quarter to quarter.

  • Over 18 months, the company tightened bid/no-bid criteria, formalized change-order discipline, and built
    clearer expectations for superintendents and project managers.

  • Average job-level gross margin increased by roughly 3 points and backlog stabilized at 10–12 months of
    well-qualified work.

More Predictable Job Profitability

Strengthen estimating, change management, and job-cost tracking so you protect margins from bid to closeout.
 

  • Clarify project selection and bid/no-bid criteria.

  • Improve change-order discipline and documentation.

  • Make job-cost reporting visible and usable for field and office leaders.

Stronger Field and Office Leadership

Develop superintendents, PMs, and operations leaders who can run jobs and teams without constant owner involvement.
 

  • Define expectations and decision rights for field vs. office roles.

  • Introduce weekly operating rhythms across jobs and divisions.

  • Free owners from being the only escalation point.

Transition-Ready Construction Business

Reduce dependency on the owner’s relationships and expertise, making the company more attractive for internal buyout, PE, or strategic sale.
 

  • Document how you win, deliver, and collect on work so others can run it.

  • Stabilize backlog, margin, and leadership bench ahead of any transition.

  • Address key buyer concerns before diligence starts.

Construction owners typically complete the Value Builder Score,
then use the strategy call to determine what best supports profit, backlog health, and exit plans.

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Case Study

Regional GC Stabilizing Margin and Backlog

  • Starting situation (Year 0):

    • $16M revenue, ~60 FTEs, self-performing selective trades.

    • Average job-level gross margin around 15–16%, with frequent erosion from change-order and scope issues.

    • Backlog fluctuating between 6–8 months, with heavy reliance on a few key clients.

    • Owner serving as the ultimate escalation point for nearly every major project issue.

  • Key constraints:

    • Inconsistent bid/no-bid discipline; took on low-margin projects to “feed the field.”

    • Change-order processes varied by PM; documentation gaps made recovery difficult.

    • Weekly field/office coordination inconsistent and undocumented.

  • Timeline (18 months):

    • Months 1–3: Baseline analysis of job-level margin, backlog composition, and project failure modes.

    • Months 4–9: Implemented clearer project selection criteria, standardized change-order workflows, and created weekly field/office coordination rhythms.

    • Months 10–18: Developed PM and superintendent role expectations, coached the team on margin and risk, and monitored job-level performance and backlog quality.

  • Before/after metrics:

    • Average job-level gross margin: from 15–16% to 18–19%.

    • Backlog: from 6–8 months to 10–12 months of better-qualified work.

    • Owner involvement in day-to-day escalations: from daily to a structured weekly review plus only highest-risk exceptions.

    • Jobs with unapproved change-order exposure at closeout: reduced by roughly 50%.

  • Result paragraph:
    Result: The business became more predictable at the job level and less dependent on the owner, and was better positioned for an eventual internal buyout or PE interest in a regional roll-up.

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