Inflation. Interest rates. Supplies. Hiring. Recession. Infrastructure. What to bid. There’s more and more to figure out and juggle every day as small and mid-size construction firms face forward. Is growth possible? Here are insights that may help with some of the decisions in your day.
Positioning
According to Ben Johnston, chief operating officer of the business financing firm Kapitus, small and mid-sized contractors should try to avoid the risk of taking on too much this year: “With uncertain labor markets and materials lead times, committing to too many jobs will stretch a contractor too thin, making it hard to fulfill obligations and meet expectations. When you do commit to a job, be sure to price the job with sufficient margin. Materials prices have risen rapidly over the past year and pricing should anticipate additional price increases that may arise during the project.”
Over-reaching is of course tempting. Many contractors find that demand for work remains strong and general contractors are looking to position themselves for more federal, state and local government contracts tied to funds stemming out of the Infrastructure Investment and Jobs Act (IIJA). Experts at Equipment World remind us about the government’s Contractor Performance Assessment Reporting System (CPARS), noting: “Scoring well on previous jobs is the best way to secure additional work, and for subcontractors, partnering with general contractors that perform well on the CPARS assessment is important.”
Know What You Can Bid On—Literally
Of course with the right financial data at your fingertips, it’s easier to know what to bid on and plot your way to growth strategically. That’s why construction company owners trust Colonial Surety. Gain control of your business with The Partnership Account for Contractors®. With it, you’ll have your own private digital dashboard, providing you with a day to day snapshot of your single and aggregate limits, as well as your current and available bond capacity. As your work in progress decreases, you can even update your work on hand—increasing your aggregate so you can go ahead and move that next bid ahead. After all, you’re in control. Get started today: Pre-Qualify and Get Free Scores Here.
Whether you have the capacity to pursue new contracts now or are working your way to up, it’s always helpful to keep an eye on what’s out there so you can position your business strategically. Equipment World reminds general contractors to register in the System for Award Management (SAM.gov), enabling you to search and ultimately apply for federal contracting opportunities. Subcontractor? Experts suggest “Seek out certified general contractors with consistent government workflow and offer to partner.”
To better understand how federal infrastructure funds are being used in your state, find out how your governor’s office is managing IIJA projects— most states have appointed coordinators to oversee implementation. According to McKinsey, over 85% of IIJA funding “will go to state and local agencies via project grants”—which means that state infrastructure coordinators are really wearing the hat of “impact officer in chief.”
Get an Edge
Given the continuous fluctuations in everything from labor to supplies to regulations, contractors appreciate getting an edge with the The Partnership Account® from Colonial Surety. Once qualified, you will use our powers of attorney to issue your own bid bond—and you can do so right up to the last moment, so you can incorporate last minute price fluctuations and supply substitutions. With Colonial behind you, you’re armed with a complete, powerful online surety management system. In addition to issuing your own bid bonds, you can expediently order performance and payment bonds, run management reports, check your current and aggregate limits, view your underwriting profile—and more.
Learn more and pre-qualify for The Partnership Account® here now.
Founded in 1930, Colonial Surety Company is a leading direct seller and writer of surety bonds and insurance products across the USA. Colonial is rated “A Excellent” by A.M. Best Company and U.S. Treasury listed.