For most in the construction industry (and, for that matter, virtually all industries), the number one resolution is to be more profitable in the new year. We polled our Construction Counseling & Dispute Resolution and Real Estate teams for tips to help you keep this resolution. This is what they shared:
1. Take stock of what you did well in 2013 and why, and incorporate those principles and lessons learned into your 2014 business plan. (In turn, identify what you did not do well and why, and incorporate lessons learned into your 2014 business plan.) This should include, for example:
A. Bidding;
B. Contracting;
C. Collections;
D. Disputes and dispute resolutions;
E. Employees;
F. Training;
G. Safety.
2. Identify who you worked well with in 2013 and determine whether there are or may be opportunities to work with them on other projects in 2014.
3. Consider industry growth trends and determine how your business model can meets the needs of the key players (e.g., renewable energy).
4. Look beyond your core business model to identify opportunities that you are not taking advantage of as part of your current business model (e.g., public projects, joint venture opportunities, additional scopes of work that are complimentary to your core business, etc.).
5. Consider federal and state financial incentives that may be available ( e.g., renewable energy).
6. Review your company’s own talent pool and pursue opportunities leveraging their strengths.
7. Recognize what your top competitors did well with in 2013 and determine whether there are or may be opportunities for you to do the same in 2014.
8. Don’t ignore that there may have been regulatory or legislative changes that are effective in 2014 that will require you to incorporate policies and procedures to address these changes in your 2014 business plan (e.g., recently, in California, the mechanic’s lien law was amended to require actual notice of the lien to the owner and to contemplate forfeiture of the contractor’s lien rights if notice is not given).
9. Consider emerging risk scenarios and incorporate policies and procedures to manage these risks in your 2014 business plan (e.g., recent trend to shift non-traditional risk to contractors).
Photo: Jiya Aggarwal, Taken Dec. 7, 2013 – Creative Commons