4 Principles of Top 1% Contractors

4 Principles of Top 1% Contractors

Read time: 3 minutes

Welcome to Building Balance, a weekly newsletter where you'll get actionable strategies to help you build balanced construction companies, careers, and people.

Today's Highlights:

• The Goal: help you do business like the top 1% of Contractors in the Construction Industry.

• I asked Baby Boomers with hundreds of years of construction experience what makes the Top 1% of Contractors stand out. 4 Principles reigned supreme.

• The 4 Principles are Support the craftsperson in the field, Don't use the contract as a weapon, Use subs and vendors as a resource, and Do what's best for the community.

• The key is taking these Principles, applying them to your business, and trusting the process.

Over the last three years, I have spoken to over 50 Baby Boomer project managers, superintendents, and executives.

These seasoned professionals have seen it all.

They know how to build, have witnessed the highs and lows of the industry, and built a foundation for the next generation of construction leaders to stand upon and succeed.

So when they speak, it’s crucial that we listen — no matter our age or experience.

I asked them what’s wrong with the industry and what the best Contractors are doing to fix it.

Through their insights, I have distilled the "4 Principles Of Top 1% Contractors." These principles represent the best practices of top-performing contractors who are driving positive change in the industry.

By adopting these principles, you can help create a brighter future for construction.

So let's dive in and discover how we can build a better world together.

Principle #1: Top 1% Contractors support the craftsperson in the field

Construction is severely understaffed.

Not only that, less and less people — especially in the Millennial and Gen Z demographics — see the trades as a viable option for their career.

Therefore, almost every Baby Boomer construction professional mentions the importance of treating craftspeople right.

Great construction companies:

• Show craftspeople they are important

• Prioritize their well-being

• Ensure they are working in clean and safe environments

This will never be perfect, but we absolutely need to strive for it.

Here’s a few ideas how:

• Have a safety day every year with raffles and giveaways

• Give performance bonuses for craftspeople with consistently good safety records

• Buy lunch and water for craftspeople on your jobsite as often as is feasible

• Have your HR team sit down with your craftspeople and sign up for your 401k program

I’d love to hear some other suggestions if you have them!

Principle #2: Top 1% Contractors don’t use the contract as a weapon

There’s a huge problem going on in the industry.

Millennials and Gen Z don’t know how to build, so they don’t use logic to make decisions. They just say “do what the contract says.” In other words, they use the contract as a weapon.

(I’m a Millennial, so I know this is true — not proud of it — but true.)

We all know the contract is important, but we also know it often contradicts itself and ignores the reality of the current state of Construction Documents.

And when you use it as a weapon, it creates friction.

Friction that leads to fighting, stress, lost time, and bad blood.

It’s not necessary.

Great companies don’t use the contract as a weapon. They use it as an objective measuring stick, as a roadmap, and then use logic to determine how to proceed on specific issues. And they push their architects and owners to do the same.

You’ll still get screwed from time to time, but you'll get screwed way more often when you consistently use the contract as a weapon.

Principle #3: Top 1% Contractors use their subs/vendors as a resource

There’s another benefit of not using the contract as a weapon:

It allows you to use your subs/vendors as a resource instead of as an adversary.

You’d be shocked how much more your subs and vendors are willing to help when you approach a situation with:

• “I don’t understand this detail.. is it possible to actually build this?”

Instead of:

• “I don’t care if it’s not constructable, you need to follow the detail.”

It’s a simple shift that takes almost 0 effort (I actually think it’s WAY easier to collaborate than demand), but it makes certain companies great.

Use your subs/vendors as a resource → Build a team atmosphere → Get better results.

Principle #4: Top 1% Contractors do what’s best for the community

I've asked this question hundreds of times:

 "What's the #1 thing you love about the construction industry?"

The answer is almost always the same.

• “We’re not building buildings, we’re building communities, hospitals, schools, and neighborhoods.”

• “We’re changing the physical landscape of our community.”

• “We’re making the world a better place.”

So of course the people who have been doing it for years all acknowledged that great construction companies do what’s best for the community!

They don’t focus on making money.

They focus on helping people.

Funny enough, that usually leads to them making money too.

Don't forget that.

"You shouldn’t have to have conflict to get resolution.” 

I really get so much joy from talking to tenured people in the construction industry.

I learn so much every time and it gives me confidence that there's good people out there who want what's best for the industry.

So I hope these principles give you something to aspire to at your company.

I’ll leave you with this quote from one VP that has stuck with me over the years:

“You shouldn’t have to have conflict to get resolution.”

Remember that on Monday as you’re negotiating whatever deal or change order you’re working through.

Once you have your results, reply to this email or tag me on LinkedIn and let me know what you learned.

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 Around The Industry: People To Know

Evan Roberts

Evan is Founder and Managing Partner of Clipper Construction in Baltimore, MD. I personally met Evan because we shared a belief in making construction fun, fair, and relationship-focused.

Check out this article showcasing Clipper's tech-enabled approach to General Contracting.

I also highly recommend following Evan on LinkedIn.