#2 Big Results Get Big Rewards

Big money changes hands on construction projects. Whether a house addition or a new stadium, construction projects always seem expensive to the Owners. The one time nature of each project and the resulting lack of efficiency means the variance between what things could cost and what they actually cost can be large. So what does that mean for you?

Let’s see. Performance on the construction project can vary greatly depending on the Foreman,  Construction Superintendent and Project Manager. A project that runs smoothly and comes in under budget (sometimes way under budget) is a Big Result for those involved. Since projects involve substantial cash outlays, the smart construction company owner ties those Big Results to some Big Rewards.

Performance based pay may mean project bonuses or an excellent salary. Generally, though, peak performers in construction receive excellent compensation for their work. It’s just good business.

In another positive corollary, expertise trumps discrimination in construction. If you have a Construction Supervisor who consistently shows promise, does projects well and makes you money, you treat that person well even if you are a bit uncomfortable with him or her (which is the basis of discrimination).  So the possibility of Big Rewards can be open to effective workers, regardless of gender or race.

Finally, Dr Salary in his PayScale Blog writes about jobs that can pay over $100,000 per year with no 4 year college degree required. Of the 14 jobs listed, he includes both Construction Superintendent/Manager and Cost Estimator, Construction. He also includes Owner / Operator, Small Business, many of whom work in the construction industry. The financial opportunities in construction abound.

#3 The Fast Whip the Big

Do you ever watch Ultimate Fighting Competitions? The super strong slow guys get hammered by the fast guys with great technique. Most industries favor the big, strong slow firms. Telecommunications, power production, manufacturing, financial services all get some great scale advantages from just being huge.

Construction, on the other hand, gets done on a project by project basis. Any firm is only as good and as strong as their current projects. A lean, small firm that thrills their customers and makes a decent profit on a project usually gets rewarded with more projects to build.

I’ve seen several waves of consolidation move through the construction industry, with large firms buying up small firms and looking for economy of scale. Mostly I’ve seen the small firms then become inefficient, lose market share and often get sold back to the original owners (at a big loss to the large firm). I can’t think of any consolidations that I’ve seen that have improved the gobbled up firm.

The talented individual in construction often gets to make decsions far above their pay grade. By allowing Construction Supervisors and Project Managers to really run projects, the opportunities for efficiency and great results goes way up. Small firms tend to understand this concept and live with the attendent risk. That’s why the fast whip the big.

#4 Peak Earning Years Extend Longer

When I was a young man, someone shared the concept of the seasons of a career. It went something like this:

1. 20s: a time for learning and growing
2. 30s: a time for finding your place
3. 40s: peak performance and earning years
4. 50s: settling into a comfortable pattern
5. 60s: focusing on ending the work life

I remember this illustration because it has seemed true for many people I’ve observed. In fact, with the booming technology changes, the peak performance and earning years for many industries has pushed down into the mid-thirties.

Construction, on the other hand, rewards thoughtful experience and competence more than most industries. Many contractors extend their peak performance into their 50s and 60s. The relationships you build and the improved understanding of the process continue to make you more valuable. Also, the varied nature of projects tends to keep you from getting bored.

I have to add a caveat here, though. Some people get 25 years of experience while others get one years of experience 25 times. The Construction Industry rewards those who strive to learn and grow from their experiences. If you do that, the older you get, the more you’re worth.

#6 You Can Start a Business with just Gumption and a Pick-up Truck

Economists call this phenomenon “Low barriers of entry to the market”. Competitors say with derision, “He just put a sign on his truck and now he’s a Contractor.”

Of course, some of those people that jump into owning their own little construction business stumble right back out, having learned some hard lessons. Others, though, persevere and create first rate firms and lots of wealth.

Most general contracting and trade contractor firms I know were started by an individual (or a few partners) with limited resources and big dreams. Many of these firms have survived generations and changed scores of lives.

Certainly every Construction Superintendent doesn’t have the goal of starting their own firm. It’s nice, though, that the real possibility exists.

Most businesses that have the upside potential of a construction company require tremendous assets and difficulty to enter the market as a viable firm. To begin a manufacturing firm, for example, requires office and shop space, approvals for your product from whatever body regulates or inspects, complicated bookkeeping and customers.

A new construction firm, on the other hand, really just needs customers. And since the primary method people decide on their contractor is from word of mouth, satisfied customers begat more work. It’s a wonderful cycle and a great industry.