Issue 3 of 9: Relationships

Construction Ownership Transition Issue 3 of 9: How Strong are the Post-Transition Relationships with Customers, Employees, Vendors and Subcontractors?

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Construction businesses rely heavily upon a network of interconnected relationships for their sustainable growth.  

Succession: Ownership Transition Issues - Number 3 Relationships. Construction businesses rely heavily upon a network of interconnected relationships. Book: Never Eat Alone by Keith Ferrazzi.

These relationships are built on a foundation of trust over many years.  

  • Customers who know you will get the job done and do the right thing throughout the construction process, even when things go wrong.  
  • Employees who have seen how you have weathered the ups and downs of the business, including how fairly you have treated everyone even when there was no right answer.  
  • Vendors and subcontractors that are aligned with how your team works and will help you win critical projects.  
  • Financial partners, including the bank and surety and insurance companies that have confidence in how you manage through the inevitable ups and downs of the market.

Take a critical look at your post-transition management team and rate the quality of their relationships with each of these groups and down to the specific people.

Identify the gaps and develop a plan to close them.  

Never Eat Alone.


Issue 3 of 9: Relationships
Continue building value in your business, yourself and your key team members with a good succession strategy....

Issue 3 of 9: Relationships
Continue building value in your business, yourself and your key team members with a good succession strategy....

Cash Flow and the 5Cs of Credit - Capital
The 2nd of the 5Cs of Credit is how much capital you are putting at risk, along with your financial partner. Contractors should design and follow their own capital management policies appropriate for their business.
Production Tracking - Don't Be a Dry Monkey
Put a few monkeys in a cage with a ladder that has bananas on top. One monkey immediately goes for the bananas. Cold water sprays on the others. Don't let anyone on your team be a dry monkey when it comes to production tracking or schedule management.
Cash Flow Tip 7 - Schedule-of-Values
Having a good SOV and billing format will set you up for cash flow success throughout the project.