This blog aims to simplify the licensing process by providing essential information and clear steps for new applicants and existing contractors alike. 

Whether you’re applying for your first license or renewing an existing one, this guide provides the necessary steps and information to ensure you meet all state regulations.

Do you need a contractor license for every type of construction work in Maryland?

In Maryland, not all construction work requires a general contractor license, but many types of work do require proper licensing. The licensing requirements vary depending on the type of work being performed.

For example, contractors performing home improvement work on residential properties with three or fewer units must obtain a Home Improvement Contractor License from the Maryland Home Improvement Commission (MHIC). While no state license is required for new home construction, registration with the Home Builder Registration Unit is mandatory.

Licensing for commercial work is typically handled at the city or county level. Contractors need to contact the Clerk of the Circuit Court in their respective county or Baltimore City for specific requirements.

Certain specialty trades require specific licenses. For example, the Maryland Department of Labor, Licensing, and Regulation (DLLR) provides licenses for: 

• Master, journeyman, or apprentice electricians.
• Master or journeyman plumbers
• Master, limited, or journeyman HVAC work.

Some minor repairs and painting work may not require a license, but it’s always best to check with local authorities to ensure compliance.

It’s important to note that even if a specific type of work doesn’t require a license, obtaining one can still be beneficial. Licensed contractors often have an advantage in terms of credibility, consumer confidence, and access to insurance and bonding.

The importance of licensing for general contractors in Maryland

Operating without a proper general contractor license in Maryland can lead to severe legal consequences and business risks. Contractors who fail to comply with licensing regulations may face fines, legal action, and loss of credibility with existing and potential clients. 

Additionally, unlicensed contractors may not be eligible for certain legal protections, which leaves them vulnerable to disputes and financial losses.

In the same vein, holding a general contractor license offers several advantages, including:

• Access to larger and more lucrative projects.
• Compliance with state and local regulations.
• Increased trust and reputation in the industry.

What are the local Maryland general contractor license requirements?

In Maryland, there is no specific “general contractor” license at the state level. Instead, contractors must obtain appropriate licenses based on the type of work they perform. 

For residential projects, a Home Improvement Contractor License is required from the Maryland Home Improvement Commission (MHIC). For commercial work, licensing is typically managed at the local level, with requirements varying by county or city. 

While it is true that local jurisdictions, such as Baltimore, Montgomery County, and Anne Arundel County, may have additional requirements like permits, inspections, or local business licenses, these specifics can differ widely. So, it is essential for contractors to consult both state and local authorities to ensure compliance with all applicable licensing regulations.

That said, as a general rule, applicants must meet specific prerequisites, including education, experience, and necessary documentation. These requirements ensure that contractors are qualified and capable of performing high-quality work while adhering to state regulations. 

Steps to obtain a Maryland general contractor license

Complete the experience or education requirement

To obtain a general contractor license in Maryland, you must provide proof of at least two years of experience in home improvement, construction, or relevant education. This can include:

• Hands-on work experience in the construction industry.
• Completion of state-approved educational programs or courses.
• Apprenticeships in relevant trades.

Here are some recognized programs or institutions to choose from:

• Maryland Department of Labor-approved courses.
• Accredited trade schools.
• Formal apprenticeship programs.

Pass the licensing exam

The licensing examination in Maryland covers various topics, including construction law, building codes, and safety regulations. 

The test is administered by PSI Exams and typically includes multiple-choice questions and practical assessments. The exam:

• Consists of 55 questions.
• Requires a passing score of at least 70% (39/55).
• Is open-book.

Here are some practical tips for exam preparation:

• Use official study guides and materials provided by PSI/
• Consider taking online practice tests or preparatory classes.
• Use official study guides and materials.
• Attend review courses or workshops.
• Practice with sample exam questions.

Licensing costs depend on the specific exam you take, but the initial cost for a Home Improvement License is around $370, which includes the application fee.

Provide corporate representation proof

If representing a corporation, you must submit:

• Articles of incorporation.
• Certificate of status (also known as “good standing”)

For other business structures, provide appropriate documentation such as:

• Partnership agreements.
• LLC formation documents.

Provide trade name certificate

If you’re operating under a trade name, submitting a trade name certificate is crucial for business identification. To obtain this certificate in Maryland:

1. Apply at the Maryland Department of Assessments and Taxation.
2. Pay the associated filing fee of $25.
3. Receive approval and the certificate.

Provide credit report

A credit report is required to evaluate financial solvency and reliability. Requesting a credit report involves:

• Contacting a recognized credit bureau.
• Reviewing the report for accuracy.
• Addressing any negative entries.

To demonstrate economic responsibility, it may also be helpful to attach financial statements and bank statements to your application.

Get liability insurance

Liability insurance safeguards your business and meets state regulations. The minimum coverage requirements include general liability insurance of at least $50,000.

However, it’s also beneficial to invest in:

• Workers’ compensation insurance.
• Coverage for property damage and bodily injuries.

Key takeaways

Obtaining a general contractor license in Maryland is essential for anyone looking to operate legally and successfully in the construction industry. 

Remember to:

• Understand and meet all Maryland licensing requirements.
• Follow the necessary steps to obtain and renew your license.
• Maintain compliance with state regulations to protect your business and clients.

By following the steps in this article, you can confidently navigate the Maryland general contractor license process and establish a reputable contracting business.

Maryland general contractor license FAQs

What is the purpose of the Maryland Home Improvement Commission (MHIC) license bond?

The MHIC license bond protects consumers and enhances a contractor’s credibility by ensuring that contractors comply with state regulations and fulfill their contractual obligations. In Maryland, the bond is only required if the contractor cannot meet the net-worth requirement of $30,000

How can having a surety bond benefit me as a contractor in Maryland?

Securing a surety bond: 

• Provides financial protection.
• Boosts your reputation.
• Instills confidence in clients and business partners.

How long does a general contractor license last?

A general contractor license in Maryland typically lasts for two years. The renewal process involves submitting a renewal application, paying the renewal fee, and completing any required continuing education.

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This process involves meeting specific requirements, completing necessary training, and passing a licensing exam.

In this blog, you’ll get all the inforrnation you need to learn how to get a Michigan general contractor license. Let’s dive in!

What are the general contractor license requirements in Michigan?

To become a licensed general contractor in Michigan, you must complete several key steps, which are structured to ensure you meet the state’s rigorous standards for quality and safety in construction:

1. Ensure you meet basic requirements: You must be at least 18 years old and hold a valid Michigan driver’s license or state identification.
2. Choose your license type: Decide between Michigan’s two main types of licenses. There is a Residential Builder License and a Maintenance & Alteration Contractor License.
3. Prelicensure education: You must complete a 60-hour prelicensure education program approved by the state. This education covers critical areas including business management laws, project management, and construction safety standards. Examples of state-approved programs include MI Contractor Training and License to Build.
4. Relevant work experience: While not a necessity, practical experience is beneficial and sometimes indirectly required through the types of questions and content covered in the licensing exam. The primary emphasis for a Michigan general contractor license is on educational prerequisites, rather than specific work experience.
5. Submit an application: Submit a detailed application to the Michigan Department of Licensing and Regulatory Affairs (LARA). This application must include proof of your education, work experience, and training, along with the necessary fees. The application fee for first-time applicants is $195.
6. Take the comprehensive licensing exam: Administered by PSI, the exam tests knowledge of Michigan residential code, building codes, and business management. You will also need to pay a fee to take these exams, which varies based on what license you’re applying for:
   • Residential Builder: $117.
   • Maintenance & Alteration Contractor: $70 to $114 (depending on the number of trades being tested).
7. Liability insurance and bonding: Michigan does not require contractors to have liability insurance, but employers reserve the right to make it a requirement. While some specific types of contractors, like security alarm contractors, are required at the state level to have a surety bond (in this case, $25,000), most other general contractor bonding requirements are mandated at the local level. This means that the requirements for surety bonds vary by city or county.

Note that while most general contractors must adhere to these requirements, Michigan provides exemptions for certain professions and specific types of contractor licenses. It’s important to consult directly with LARA to understand if your specific trade or profession falls under these exemptions.

Step-by-step guide to getting a general contractor in Michigan

Step 1: Complete your prelicensure education

Prelicensure education is mandatory and includes courses in business management, project management, and construction safety standards. Accredited institutions offer various courses designed to prepare candidates for the licensing exam. 

You must complete 60 hours of approved prelicensure courses. You must spend at least 6 hours in each of the following subjects:

• Business management, estimating, and job costing.
• Design and building science.
• Contracts, liability, and risk management.
• Marketing and sales.
• Project management and scheduling.
• The Michigan residential code.
• MIOSHA construction safety standards.

Here are some best practices to complete your prelicensure education:

• Select courses that are state-approved and that align with Michigan’s licensing requirements.
• Start preparing for the licensing exam by creating study materials during your courses. There are plenty of resources available for free online.
• Take each lesson one step at a time, and don’t try to rush the process, as it will only negatively impact you down the road.

Step 2: Submit your application and confirm your moral character

1. Complete the application form and submit the application to the Michigan Department of Licensing and Regulatory Affairs (LARA):
   1. Include proof of completed education.
   2. Pay the applicable fee.
   3. Include supplemental documentation, such as proof of experience and training.
2. Submit the application along with the required fees.
3. While there is no specific process to verify your moral character, the law states that applicants must “Be of good moral character.” Try to include supporting evidence to this (i.e., documentation and personal references) in your application.

Step 3: Pass the licensing exam

After meeting other requirements, take the Residential Builder or Maintenance & Alteration Contractor examination.

Each licensing exam covers various topics, including the Michigan residential code, business management, and construction safety standards. It is designed to test the applicant’s knowledge and competency in these areas.

Here’s what you need to know:

• The exam is administered by PSI.
• Exams are available at five PSI testing centers throughout Michigan, six days a week.
• Applicants choose their testing center and day of examination.
• Exam fees are paid directly to PSI when scheduling the exam.

To give yourself the best chance at passing:

• Use study guides and practice tests to prepare for the exam.
• Focus on key areas such as business management laws and building codes.
• Utilize available resources, like online courses and exam prep books.

What are the consequences of unlicensed general contracting in Michigan?

Operating as an unlicensed general contractor in Michigan can lead to severe legal ramifications, including fines and potential legal action.

Michigan law specifically prohibits unlicensed contractors from enforcing any building contract through court actions. This includes being barred from bringing any action to collect fees or foreclosing on construction liens related to their work.

For residential projects in particular, here are some of the possible consequences of operating without a license in Michigan:

• Legal ramifications: Unlicensed contractors are prohibited from bringing legal action to collect fees for their work. They also cannot file liens on properties for unpaid work.
• Financial penalties: If you’re caught operating without a license, you will be charged a fine between $5,000 and $25,000 for your first offense. Fines increase for subsequent violations.
• Criminal charges: You may even see jail time for working unlicensed. Your first offense could lead to up to one year in jail, while subsequent violations mean up to two years in jail.
• Reputational damage: Operating without a license could damage your professional reputation if word catches on.
• Legal action: Without a Michigan general contractor license, you’re vulnerable to lawsuits. The Attorney General’s office has been handling an increased number of cases involving unlicensed builders. In 2022, they dealt with over 200 misdemeanor unlicensed builder cases.

Pro-tip: Michigan has introduced a “Pretrial Diversion Program” that helps unlicensed builders avoid criminal prosecution if they quickly come into compliance with licensing requirements and fully reimburse complainants.

How much does it cost to get a general contractor license in Michigan?

While your exact Michigan licensing fees are dependent on your specific circumstances, a ballpark estimate for your total cost is $600 to $1,800.

Here’s a more detailed breakdown:

1. Application fees: $175, non-refundable.
   • Veterans may be exempt from this fee if they can show their separation from the armed forces was “honorable” or “general under honorable conditions”
2. Exam fees: 
   • Residential Builder Exam: $117.
   • Maintenance & Alteration Contractor Exam: $70 to $114, depending on the number of trades or crafts being tested.
3. Renewal fee (must be paid every two years): $185.
4. Prelicensure education: 60 hours worth of lessons. The cost for these courses could range from a few hundred to over a thousand dollars, depending on the provider.
5. Additional expenses, such as:
   • Study materials for exam preparation.
   • Potential business registration fees.
   • Liability insurance and bonding costs (if required, though not specifically mentioned for general contractors).

Budgeting for these expenses is crucial. Financial assistance and payment plans may be available to help cover the costs.

Do you need a general contractor license in Michigan?

In Michigan, certain construction activities require a licensed general contractor. It is essential to understand who needs a license and the specific activities that mandate licensure.

If you are working on any project valued at more than $600, you need to have either a Residential Builders License or a Maintenance & Alteration Contractors License.

The following jobs require a license under all circumstances:

• Building new homes.
• Major renovations and repairs.
• Commercial construction projects.

Key takeaways

Obtaining your Michigan general contractor license involves several key steps, including: 

• Completing 60 hours of prelicensure education.
• Gaining relevant experience.
• Submitting an application with fees.
• Passing a licensing exam. 

Remember that operating as an unlicensed contractor can lead to severe legal consequences, including substantial fines and potential jail time. So, you’ll want to comply with all the requirements and get licensed as the very first step in launching your career as a general contractor.

Michigan general contractor license FAQs

Does a general contractor license in Michigan increase your earning potential?

Obtaining a general contractor license in Michigan can significantly enhance your earning potential and access to larger, more lucrative projects. A license validates your qualifications and lets you take on more complex and higher-paying work.

How often do I need to renew my contractor’s license in Michigan?

The renewal process for a general contractor license in Michigan involves periodic renewal fees and depending on your locality, can include continuing education requirements to ensure ongoing compliance with state regulations.

Are there additional requirements for specific types of contractor licenses in Michigan?

Yes, certain types of contractor licenses, such as electrical, plumbing, or mechanical contracting, have additional requirements. These generally include specialized training, certification, and adherence to specific building codes. Additional requirements are entirely dependent on your specific trade and locality. 

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Looking forward, this article covers key construction industry trends 2024 brings to the market.

More importantly, you’ll learn some strategies to keep you up to speed with these industry innovations.

Here we go! 

What construction industry trends should you watch out for?

1. The rise of smart cities

The first trend to expect is the rise of smart, connected cities. This article by the Journal of Urban Technology explains smart cities as “high-tech intensive” urban solutions that connect people, data, and city elements to improve:

• Eco-friendliness.
• Economy.
• Quality of life for society.

As smart cities become more common, construction projects become more complex.

And by that, you can imagine more pedestrian sensors and WiFi-enabled lighting. Construction companies need to increase their technical know-how to stay on the same page as these developments.

How sustainability plays a role in the smart city

It’s predicted that two-thirds of the world’s population will live in cities by 2050. There’s an obvious need for smart, sustainable cities.

A few roles that sustainability plays in the construction industry trend include:

• Public transportation using real-time data and sensors to monitor high passenger volumes and accidents. 
• “Smart roads” that reduce fuel costs and emissions.
• Waste management, which includes smart bins and data to improve garbage collection and waste audit. Not to mention, less fossil fuel use.
• The internet of things (IoT) to include sensors that measure air quality, noise levels, and energy.

Here’s what you’ll need to do with these insights:

• Figure out what skills and equipment smart city development requires.
• Plan for this shift, including how your government might respond.

How to overcome this key construction industry trend

Education is key to preparing for the rise of smart cities. Even taking part in skills training early will pay off for professionals who want to own this niche.

2. Increased pressure on the bottom line

Although construction revenues have been increasing in previous years, net profits in the industry are slim.

According to Deloitte, construction earnings before interest and tax (EBIT) account for 5.5% of a company’s sales. This leaves little wiggle room when it comes to unplanned expenses.

“On average, construction earnings before interest and tax (EBIT) account for only 5.5% of revenue.”

—Deloitte, 2019

To make matters worse, the cost of building materials, such as concrete and brick, is going to rise.

Among various business threats, inflation is on the rise. So, construction companies need to look long and hard at areas that can be improved to drive a better bottom line.

“Construction companies need to look long and hard for ways to drive a better bottom line.”

How to prepare for this key construction industry trend

Whether it’s negotiating prices with suppliers or automating sales workflows, construction companies need to prioritize efficiency and cost-saving.

You’ll need to consider how fluctuating materials costs will affect your:

• Budget and funds.
• Estimates and quotes.
• Sales goals.
• Bids.

3. The development of new construction materials

To increase profits and sustainability, construction companies need to:

• Reduce building material costs.
• Source sustainable building materials.

As a result, the following building materials are currently trending in construction:

• Engineered Cementitious Composite (ECC) — AKA bendable concrete. ECC contains polymer-derived fibers that make it stronger than traditional concrete. It’s cost-effective that way and has a smaller carbon footprint. 

• Engineered timber — These are timber products made by engineering several types of softwood together. The result is a lumber material with the power to replace steel and concrete. This means fewer emissions and less waste during the manufacturing process.

• Recycled materials — Using recycled materials isn’t new. But recycled materials are now being used to construct entire structures (small ones for now).

• 3D printed building materials — This includes things like concrete, walls, floors, and others needed in construction. More on 3D printing and construction below.

Another strategy used to reduce material costs is modularization and prefabrication. 

By adding a module assembly yard to a construction site, materials are assembled on-site. That reduces material and shipping costs. 

4. A declining workforce

As far as key trends in the construction industry go, a shortage of workers is nothing new.

While the demand for construction services has been surging in recent years, the bad news is that the number of laborers hasn’t.

According to Deloitte, in 2014 construction job openings increased to 50% while new hires trailed behind at 14%. As a result, there are risks to organizations that are eager to take on new construction projects.

Without enough laborers to meet deadlines, customer satisfaction becomes challenging. So, for companies to get repeat customers it’s important that crews have enough workers.

How to handle this key construction industry trend: Investing in human resources

With construction worker count decreasing, companies need to do more with less. 

Supporting your team’s efforts with more construction equipment or workflow automation are sure-fire ways to get the productivity up.

Another way you can tackle the challenge is to invest in your team. Here are a few ways construction companies can do this:

• Creating training programs, certification programs, and apprenticeships.
• Offering bonuses and performance-based incentives.
• Paying competitive wages.

Following these recommendations has the potential to:

• Reduce employee turnover, which is at the highest rate of all industries.
• Help you recruit highly-skilled laborers.
• Get an up-close look at potential hires and future leaders to develop for your needs.
• Improve client relationships as they appreciate an efficient network of workers. 

5. 3D printing having a bigger impact on the construction industry

As mentioned above, 3D printing continues to play a big role in construction.

While we aren’t 3D printing homes on a mass scale yet, there are models of mansions and office buildings that were 3D printed — in record time, no less.

A more practical use for 3D printing in construction is for low-income and emergency housing. 

The cost of an entirely 3D-printed home is currently around the $10,000 mark and there’s a possibility of that being reduced to $4,000.

And right now, 3D printing of materials, building components, and parts for construction equipment is already in full swing.

And what are the benefits? Think reduction in waste, turnaround times, and the ability to mass print custom designs without changing any machinery. It’s clear why 3D printing is a construction industry trend to have on your radar!

6. The overall trend towards tech and digitalization in construction

Necessity is the mother of invention. With labor shortages and shrinking profits, tech in the construction industry promises productivity and efficiency.

Some of the influence that tech has had on the construction industry includes:

• Robotics like mechanical arms that perform repetitive tasks such as brick-laying.
• Self-driving construction vehicles.
• Drones for inspections and land surveying increasing 239% year-over-year.
• The use of AI and simulations in collaborative building design.
• Wearable sensors for worker safety regulations.
• Smart project management like job scheduling and budgeting tools.

Tech has disrupted every industry, so it’s no surprise that various sectors in the construction industry are following suit.

Construction industry technology trends

Technological advancements are changing the construction sector. And thanks to the latest research and developers, the Internet of Things and AI are fuelling construction growth. 

But what trends and events should you keep an eye out for? Here are a few expectations you should have:

• Digital collaboration software that allows teams to stay connected even when miles apart.
• New building materials to finish construction projects in a shorter amount of time.
• 3D printing with the advantage of faster access to tools and equipment.
• Robots and machines that can work on repetitive and menial tasks.
• Wearable devices like GPS trackers and biometric sensors for safer construction sites.
• New kinds of bricks made from a wide range of recycled materials, including industrial waste.

All of these developments may seem difficult to grasp and implement for your own business. But they’re worth it! 

As construction business owners, you want to grow your business. So, by embracing these new trends before the competition, you’ll be sure you’re delivering the best value for your customers. 

Residential construction trends in 2024

The pandemic has caused more people to realize the importance of comfort at home. As a result, market trends show that customers want more personalized touches in residential spaces. 

As well as that, the looming forecast of climate change is also driving construction market trends across the world. 

To make sure you’re always ahead of the curve, here are some key trends in the home-building market for 2024:

• Energy efficiency: With more people concerned about sustainability, construction industries need to prepare for building environmentally-friendly homes. 
• Outdoor spaces: Being stuck at home for the past few years has inspired people to recreate natural settings at home. This means more requests for livable outdoor spaces like an exterior living room or outdoor kitchens.
• Smart home technology: Statistics show smart homes taking the world by storm. Expect more requests for programmable thermostats, clap-activated lights, and other smart appliances. 

Access to more home improvement resources has also inspired homeowners. Here are some stylistic trends:

• Shiny or matte black accents on windows, doors, and furniture.
• Requests for “biophilic design” with organic materials and an emphasis on letting more sunlight and fresh air into the house.
• Maximalist designs with cultural touches, which compensated for the lack of travel during the pandemic.

Commercial construction trends In 2024

As with residential buildings, the construction market forecast shows market growth in the commercial construction landscape. 

Additionally, the rise of hybrid working environments has changed the way we see offices.

Some more key trends in construction sectors are:

• Potential supply chain disruptions: Recent shortages in wood, steel, and lumber may lead to the inflation of material costs this year. Lock prices early, so they don’t surge once your project kicks off.
• Skilled labor shortages: Many construction companies are still struggling to recruit skilled construction workers, causing delays to their work process. Scout trade schools and colleges to ensure you meet labor supply requirements. 
• Drone usage: Many dangerous tasks can now be done with robots and drones. 
• Sustainable offices: Sustainable offices have become a priority for companies looking to build office space. Expect requests for more greenery and energy-saving measures.
• Multifunctional rooms: With more people working at home, businesses are trying to maximize space, with architecture that includes multifunction rooms and open working spaces. 

Construction industry trends FAQS

How big is the construction industry?

The construction industry is one of the world’s largest industries in terms of spending. 

As of November 2019, there were 10.2 million construction workers in the United States, comprising nearly 8% of the entire U.S. workforce.

Experts estimate that the construction industry is valued at 10.5 trillion USD in 2024 with an annual growth rate of 4.2%. 

Many factors drive this growth, like rising infrastructure needs and increasing housing demand. 

How to get out of the construction industry?

Unless you’re retiring, getting out of the construction industry likely means you need to move into a new line of work. Depending on your age and experience, this can be tricky. 

To prepare yourself for a career change, you can:

• List your interests to start mapping out a new career path.
• Identify transferable skills that you picked up in construction that can be applied in other careers.
• Consider applying for an apprenticeship or have an experienced mentor take you under their wing.

Consider working as a:

• General contractor: Contractor work is a construction-adjacent job where many of your skills are transferable.
• Project manager: The organizational and time management skills you learned in construction will serve you well in this role, where you’re expected to keep track of deadlines and project budgets. 

Is there a concrete shortage in 2024?

Parts of America are going through a concrete shortage in 2024. There’s a high demand for concrete in the construction sector, as well as low supplies. This results in high concrete prices. 

This concrete shortage may be attributed to factors such as:

• Supply chain interruptions.
• Carrier fleet service hour changes and loading restrictions.
• Limited capacity on cargo trains.

If your construction company is affected by the concrete shortage, lock suppliers in earlier or change your construction methods. 

Luckily, this shortage is expected to be temporary, and supply should resume to normal in the second half of 2024.

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Looking forward: Key construction industry trends to come

The key trends in the construction industry highlight the important role technology plays in the future of construction. Looking into this next decade, you can expect:

• Urban development to become more complex.
• Construction costs to increase.
• More employee incentives to support a declining workforce.

When you embrace the changing landscape of the industry, you can expect more opportunities.

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Here are six trends for construction businesses to be aware of in 2020 and beyond.

1. Material costs are increasing

Building material costs will continue rising this year. This trend began at the end of 2017 and it likely won’t end anytime soon. The highest cost increases are currently in steel, manufactured steel, softwood construction lumber and iron. This affects the whole construction supply chain including suppliers, wholesalers, partners, and customers.

When planning projects, industry professionals will need to take extra care to forecast increased material costs. Construction firms should consider implementing technology solutions that connect with their inventory levels and offer functionality to take advantage of real-time buying opportunities. By monitoring market highs and lows, you can ensure you’re making educated and calculated buying decisions.

2. Automation is supplementing workers

Automation is one of the top emerging changes in the construction industry. For example, companies are increasingly using automated solutions for creating pre-fabricated concrete or wood frame structures.

By streamlining and automating manual, repetitive tasks, employees now have more time to focus on what really matters: developing competitive strategies and producing successful outcomes.

While many organizations may fear the rise of automation, you should strive to embrace it. By taking early advantage of this industry transformation, you can ensure that your business stays one step ahead of your competitors.

3. More technology on worksites

When people hear the word “technology”, their first thought is often computers. But technology in the construction industry isn’t limited to the back office. We’ll also continue to see new technology developments on worksites.

One key area for technological advancement will be safety equipment. Some companies already offer smart work boots that come equipped with GPS transmitters. This innovation allows supervisors to find workers who are slowing down because of fatigue or who have suffered an accident. In addition, expect to see more cooling vests, moisture-wicking fabrics and robot surveying equipment.

Beyond new technology for construction workers, support for new types of building technology continues to increase. For instance, there is a growing interest in prefabricated, modular buildings. Modular homes appeal to consumers because there is no on-site construction to impact the landscape and development occurs faster. As an added benefit, these structures can be moved in the future if the owner finds a preferable parcel of land.

4. Increased focus on sustainability

Selling to Millennials isn’t an easy task, so you must get creative. One strategy is to appeal to younger consumers’ interest in environmental preservation.

More and more construction companies are focusing on creating sustainable practices and highlighting the ecological benefits of their products. For example, many suppliers are now offering green alternatives to popular construction materials, such as hempcrete — a hemp-based concrete alternative that produces fewer emissions and is completely biodegradable.

But going green doesn’t just mean using recycled or upcycled materials — it also means being efficient. Cutting down on energy consumption, material waste, and pollution is also key to being sustainable and environmentally responsible.

5. Drones allow for a bird’s-eye view

Drones are becoming more prevalent in land use businesses like construction, urban planning, and real estate. Indeed, drones with cameras offer many benefits in construction, including:

• Taking aerial images of large-footprint projects
• Reaching remote areas
• Helping to create imagery for visual depictions
• Creating high-impact visuals for presentations and pitches

These crewless aerial vehicles are becoming more sophisticated every year. Better yet, the prices of these high-quality systems are becoming more affordable than ever.

6. Construction management software offers advantages

The benefits offered by construction management software continue to increase as technology advances. With today’s increasingly complex projects and company responsibilities, it’s imperative that your company has a system in place to track and organize all of your data. Today’s technology solutions allow you to handle multiple business functions all in one place, including:

• Project management
• Scheduling
• Order changes
• Human resources
• Accounting and invoicing

Construction management software increases project efficiency and accountability by allowing you to access essential communication and documentation on the go. The software also helps to streamline day-to-day, time-intensive tasks. This leaves you with more time to focus on the big picture — your company objectives and key results.

As we move forward, we will continue to see even smaller construction companies taking advantage of integrated software solutions.

Tackling change with the right tools

In a rapidly changing industry, it’s more important than ever to ensure that your projects stay on time and on budget. No matter the size or focus on your construction company — big, small, residential or commercial — your best bet is to start with the basics. Look for technology that will help you manage your customers, streamline estimating and invoicing, and minimize inefficiencies. From there, you can layer on additional technology to enhance your operations.

Taking advantage of the changing construction landscape will ensure your reputation as an industry leader and innovator. Your company is ready to reap the benefits — all you need is the right tools to get started.

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Look at any large-scale construction project today and you’ll see that cloud technology is quickly becoming an essential part of the industry’s work.

It makes sense that an industry with multiple worksites would leap at the chance to digitize its paper-based workflows. However, some of the ways builders are using the cloud may surprise you.

The rise of cloud technology in construction

The Internet of Things (IoT), autonomous vehicles and always-on mobile internet connections are rapidly growing in popularity. Consequently, on-premise solutions for storing and deploying data and applications are no longer practical options for construction companies.

From invoicing software to mobile CRM software for managing jobs and clients, cloud-based solutions can streamline and simplify countless daily tasks. For instance, cloud software can help construction firms by:

• Monitoring and automating maintenance and work schedules
• Tracking equipment and resources to optimize logistics and prevent losses
• Monitoring and assessing individual projects through Building Information Modelling
• Tracking and optimizing work on-site using sensors that monitor downtime
• Using predictive analytics to optimize workflows and predict problems before they arise
• Monitoring staff performance and detecting health and safety issues early on

There’s no doubt that new technology solutions will continue to emerge in the coming years.

Key benefits of cloud technology

Cloud technology has the potential to impact every part of a construction company’s work. Here are some of the key benefits that it offers.

Enjoy greater mobility

Reliable, grounded internet has not yet reached every place in which construction occurs. Just consider the large infrastructure projects in resource sectors like mining or forestry, or large transportation projects like highways or ports. The locations of these projects are often highly remote. Yet when you combine with the arrival of 5G mobile connectivity with the move towards blockchain-based cloud solutions, teams can use data and resource-heavy applications and services virtually anywhere.

Digitize your workflow

For many years, construction companies relied on traditional paper-based workflows for their inherent quality assurance, security, and reliable record keeping. However, the cloud is now more than capable of meeting and surpassing these expectations. This creates opportunities for workflows to be partially or completely digitized, thus eliminating the need to haul files and documents from site to site.

Instantaneous, paper-free communication between the head office, site offices, managers, individual contractors, and partner companies now enables instant updates for all parties involved. For example:

• Individual contractors can track their work by location, hour and day
• Shipments of materials can be located at a moment’s notice and sent to where they’re needed
• Billing can be near-instantaneous through the use of invoicing software that syncs with your accounting software
• Important customer and project data can be made available to all team members immediately, no matter where in the world the build site or head office is located

Overall, the connectivity offered by cloud technology creates a thorough and highly accessible digital “paper trail.”

Drive automation and big data

Automation is a huge part of the digital transformation landscape, with machine learning playing an enormous role in optimizing workflows and predicting problems before they occur. Once they’re based in the cloud, many construction workflows can be automated or at least semi-automated. Tasks like ordering equipment, fuel and other materials to a worksite can be handled digitally, which reduces downtime caused by inefficient logistics planning.

At the same time, big data is becoming more important in every industry. The cloud provides the scalable and flexible storage and networking infrastructure needed for the effective use of big data.

Exceed client expectations

Without the cloud, coordinated account and client management become nearly impossible for an industry with multiple worksites. By making the most of cloud apps and their ability to host services and data online, construction firms can make sure they’re always prepared to meet their clients’ expectations.

Cloud CRM software: an essential tool for modern construction companies

Construction projects are often lengthy endeavors. As such, firms must carefully manage their relationships with prospects and clients over long periods of time. It’s essential that they have a reliable system to keep track of contact information, communication history, and special requests.

Many companies are becoming more digitally sophisticated by adopting client relationship management (CRM) software. These cloud-based systems give managers, sales reps, and marketers quick access to essential client data whenever they need it. In general, a construction company can use their CRM to:

• Track the various contacts associated with each prospect and client
• Maintain detailed records of interactions
• Provide useful insights into the success of their sales and marketing strategies
• Enable team collaboration across multiple worksites — and much more.

Furthermore, an effective CRM for construction will go beyond relationship management by offering some of the benefits described above, like workflow management and task automation.

The benefits of cloud technology in the construction industry are clear. For companies that are looking for a competitive edge, now is the time to invest in solutions that can enhance your current processes and adapt to your future needs.

The post Leveraging Cloud Technology in the Construction Industry appeared first on Method.

Client disputes lead to frustration, wasted money, and smaller profits. Frequent disputes can damage a contractor’s reputation and may result in a loss of business in the future. In some areas, miscommunications can even lead to a complaint against a contractor’s license.

Even though miscommunications are common, they don’t have to be. Good organization, smart business practices and proper use of technology can help construction businesses avoid these problems. In this article, we’ll look at some of the ways in which construction companies can avoid client disputes and manage their client relationships more effectively.

1. Communicate in person and avoid texts

Text messages convey no emotion, so they’re easy to misunderstand. A misplaced period, lack of a comma or even just the auto spell-check function can lead to some very strained communications between the client and your business.

Whenever possible, communicate in person. If you’re not able to communicate in person, the phone is the next best option. And if you must send a text message, make it a yes/no question. Re-read your message once before sending it to ensure you’re saying what you mean.

If you have something longer to say and you can’t say it over the phone or in person, email is a better route. The built-in spelling, grammar, and punctuation checks help to ensure that you get your message across clearly, so the client knows what you’re trying to say.

2. Write a thorough contract

Your contract is one of your most valuable tools for avoiding miscommunications. Always create a contract, even if the job is relatively small or low-cost.

This document should contain all details of the job from start to finish. It should answer questions such as:

• When will work begin?
• What are the payment terms?
• Who will clean up? 
• Who will dispose of the mess?
• What are the client’s responsibilities before the job begins?
• On what days and during what hours will the construction crew be at work?

Have your client initial each page to acknowledge receipt, and require them to sign at the bottom. If your state requires you to provide disclosures or informational sheets to your clients, include a line in the contract acknowledging that the client has received these documents, then have them initial the statements.

3. Always make change orders

Change orders are addendums to a contract that acknowledge changes made to the job while it’s in progress. Change orders are important for ensuring that everyone is on the same page.

When writing change orders, include information about how the changes affect the total cost of the project. Ask the client to sign before moving forward with the work. Keep copies of all change orders with the copies of the original contract. 

4. Designate a single point of contact

The easiest way to ensure that information is transmitted to and from the client in an organized way is to designate a single point of contact at your company. Provide the client with a cell phone number, office number, and email address that will make it simple for them to reach their contact at any time.

Avoid letting other employees on your team get mixed up in this chain of communication. If the client has questions or brings up something they want to discuss, instruct your employees to direct the client toward their go-to contact instead.

5. Speak clearly and avoid jargon

Industry jargon is confusing to many people. When speaking to clients, put everything in simple terms. Speak clearly and in a logical, linear fashion. Stop occasionally to ask your client if they have any questions.

Whenever possible, explain (in layman’s terms) how a project will proceed. Give step-by-step instructions that explain how and why you’ll be doing what you’ll be doing. The more you practice talking to clients who aren’t familiar with the ins and outs of your job, the better you’ll become at communicating clearly. 

6. Become a better listener

Listening skills are not easy to come by, but becoming an effective listener can help you better meet the needs of your clients. Give your client enough time to speak. When they’re done talking, repeat what you believe they said back to them, then ask follow-up questions to clarify what they need and want.

7. Manage expectations

Clients will want you to make promises about what you can do and for how much money. But overpromising can lead to disappointment and frustration.

Be realistic when talking to clients, even when you’re competing for the job. While it may be tempting to go above and beyond to win the project, setting expectations too high can lead to lost money or poor customer service down the line.

8. Improve your bidding skills

Detailed, accurate bids help your company stay on track during construction jobs. Use a template bid sheet for every job, as well as construction bid software to estimate your costs and budget for each project. Keep your own database of costs for your area so your estimates are more accurate.

Your bid must include the raw costs of the job, plus overhead. Keep in mind that the costs for new tools, marketing, and advertising must be included for every job. Markups for this work may be high, but accounting for these costs enables your business to keep growing. 

Submitting accurate, detailed bids to clients also helps to ensure that they know what they’re paying for (and what they’re not). Itemize these documents whenever possible to make sure your client is fully aware of your scope of work before they sign the contract.

9. Use smart software to stay organized

Client relationship management software empowers businesses to stay organized and manage client expectations. A robust CRM can help contractors keep a centralized record of interactions and schedule reminders to follow up with clients. And with the ability to create custom fields and add multiple contacts per client, it’s an excellent tool for any contractor trying to track every detail.

Conclusion

Projects are easier to complete when the client and contractor are on the same page. Avoiding miscommunications can help contractors save money while generating new business through referrals from satisfied clients.

Luckily, there are ways to avoid miscommunications at every stage of a project, from writing a proper contract to tracking conversations to scheduling timely follow-ups. Good communication takes practice, but the more you do it, the easier it will be to maintain strong client relationships.

The post 9 Ways to Avoid Miscommunications with Construction Clients appeared first on Method.

Today, construction projects use technology from initial planning to final completion. For every construction project, there are:  

• Planners in the engineering office using Building Info Modelling (BIM) software to create digital models of their projects.
• Sales Reps using online portals to bid on tenders or submit proposals.
• Project Managers using drones to survey a construction site’s footprint.

With the demand for every type of construction project expected to increase significantly over the next few years, it may seem like a lucrative time to be in construction.

The road ahead, however, isn’t easy when you consider the hyper-competitive nature of construction projects.

In fact, the margins of many winning proposals are often so tight that even a small error or unexpected surprise can cause a project to lose money.

“The margins of many winning construction proposals are so tight that even one small error can mean that the project loses money.”

Construction project case study: Hospital revitalization

With many communities across North America renovating local hospitals to include new technology and infrastructure, we’ll use this context for our case study.

Before we dive into things, let’s consider a few things:

1. Hospital revitalizations are large construction projects with many stakeholders.
2. These projects are often publicly funded, which means they must follow transparent processes for bids, contracts, approvals, and delivery.
3. Hospital revitalization projects have multiple phases and take years to complete.

With so many moving parts integral to a hospital revitalization construction project, it’s clear that there are many opportunities for a customer relationship management (CRM) solution to drive greater efficiency.

Let’s take a closer look at how a CRM solution can improve construction project success!

Phase 1: Bidding and proposal

At this phase of a construction project, an Estimator draws on the company’s financial records to review past projects and estimate costs so that they can put their most competitive bid forward and secure work.

At this stage, there are no shovels in the ground but construction companies are already in need of an accurate, real-time source of data to inform their bidding strategy.

The problem here is that the information Estimators need to competitively bid is all over the place. Whether it’s hidden in a stack of papers on someone’s desk or spread across Excel files, Estimators rarely have access to a data set that’s comprehensive enough to apply to the bidding process.

Enter CRM

Incorporating a CRM system that connects seamlessly with QuickBooks accounting software will alleviate this problem, as Estimators now have immediate access to information such as past invoices and customer records. Which of course, makes formulating competitive, data-driven bids a faster, more effective process for them.

Phase 2: Pre-construction

Now that we’ve been awarded the contract for the hospital revitalization project, it’s time to meet with key stakeholders.

Working in collaboration with the hospital’s construction project committee, it’s time to develop a comprehensive revitalization building plan. Which is when the big questions about cost start to hit the fan:

• What are we paying for trades and sub-contractors?
• How frequently are the payments coming in?
• Which construction projects are profitable?
• Which construction projects were above budget?

And with this many questions, comes many point people.

This means we’ll have to ensure communication runs smoothly between everyone from design contractors to permit and license contacts.

AKA a logistical nightmare.

Enter CRM

This is another area where construction CRM software is beneficial.

As you start coordinating with hospital staff, as well as managing subcontractors and partners, you need a reliable solution to keep your head on straight.

A CRM solution makes it easy to track all these relationships as well as share them with others are your organization.

Phase 3: Construction

Now it’s finally time to break ground, put up walls, and build something great for the community.

To get started, you need to hire subcontractors. Which might have you thinking:

• Are subcontractors part of your project team? Yes, absolutely.
• Are they independent entities? Yes, absolutely (again).
• Is each subcontractor relationship actually a discreet client-service provider relationship inside a much larger process? Yes, absolutely (for a third time!).

Sounds complex…

Enter CRM

An effective CRM platform simplifies your sub-contractor management. And it’s even better if your CRM integrates with QuickBooks, as then you can process transactions and manage construction project progress in one place.

CRM benefits for a complex construction project

Successful construction companies need a comprehensive solution to manage countless data points.

In fact, it’s critical that every person from the estimator to the project manager be able to access data on contracts, customer relationships, costs, and transactions.

This is exactly where a CRM comes in. CRM solutions streamline construction projects of any scale as they make information:

• Easily accessible. With a CRM solution, employees of all levels can access the data they need to do their job.
• Consistent. CRM solutions offer contact details and customer histories that are accurate and up to date to the stakeholders who need it.

Start using a construction CRM with your free trial of Method CRM!

The post Why CRM solutions increase construction project success appeared first on Method.

Without a good construction accounting software, businesses will likely collapse. For those that do have one, there may come a time when they must start looking for a new software package to meet new demands. However, it is worth exploring ways to extend the life of the software instead of replacing it.

Important considerations for your accounting software

The team at Smith Schafer has provided some good insight and outlined two important considerations before committing to a new software package.

1. Determine what your construction company needs in its accounting software.
2. Determine if your current accounting software meets those needs.

In the Smith Schafer article, it goes on to offer four additional, but specific, items to consider if a new accounting software is a final recommendation from the company assessment they suggested. But as mentioned earlier, there is an entire area that is often overlooked which should never be ignored in this day and age that may ultimately lead to a decision to keep the existing solution.

The accounting ecosystem you can’t ignore

Any good accounting software has an important but also limited value to a business when used alone. But, when it becomes part of an integrated technology ecosystem, it sees both its value and longevity substantially increase.

The majority of today’s accounting solutions are backed by entire ecosystems of 3rd party applications, integrations, and other connections. So any construction business looking to remain standing should always consider this ecosystem as part of their accounting assessment.

Take for instance an example with Intuit’s QuickBooks Enterprise Contractor Edition, a powerful accounting desktop solution that helps businesses in the construction industry manage their bids, estimates, change orders, vendors, subs, employees, reporting and a whole lot more.

QuickBooks, a heavyweight in the accounting space, started off on a now-famous kitchen table, trying to solve one specific problem: “how do we balance this checkbook?” It has since evolved into a best-in-class cloud accounting platform with an app marketplace that boasts hundreds of other applications built by third-party developers each solving their own set of unique problems.

Adding value by adding integrations

It’s really within these software ecosystems that you find solutions that not only integrate with your construction accounting but also specialize to solve problems that you may not even be aware of. In most cases, these additional connections turn out to either solve the problems better than the original software could do on its own or solve a problem that it was never designed to solve.

With industry-leading applications like Knowify, TSheets and Method CRM just to name a few, they each add value by solving unique problems while integrating with QuickBooks construction accounting.

Knowify is best known for their powerful job costing tools and offers solutions to help plan jobs and itemize labor and material budgets for creating estimates.

TSheets for QuickBooks offers an easy, cost-effective alternative to traditional punch time clocks on the job site. Employees simply clock in to track time against jobs, equipment, departments, and more. Since TSheets is already a member of the QuickBooks family, it’s no doubt this is an easy addition to your existing accounting software.

In the case of Method CRM, it adds value to any construction company by looking at the entire workflow. Whether it be gaining new customers or finding repeat business, Method CRM helps turn more bids into projects via the shared pipeline for your entire crew to see.  It specializes in eliminating redundancy in your workflow using its bi-direction, real-time sync with QuickBooks sending all your important transactions to accounting. These are just some example of the endless problems that are solved with a Construction CRM as part of the accounting ecosystem tailored just for your business.

How to start adding integrations

It’s important not to be intimidated by the accounting technology landscape. As it turns out, most of us already have some experience with apps and various connections by just tailoring the use of our smart-phones. Yes, it’s remarkably similar to what we already do from the Apple App Store or Google Play.

By simply embracing various apps and add-ons for your mobile devices, you have created your very own tailored experience. Whether it be as a business or an individual smartphone user, you have quite literally built an environment to meet your unique needs and preferences.

So, the next time you’re assessing your construction accounting, include some extra research as part of the plan. Check the software vendor’s website and do some simple Google searches for potential app stores, marketplaces or other integrations. You’ll be surprised at the possibilities to help extend your existing software’s lifespan.

The post Extending The Life of Your Construction Accounting Software appeared first on Method.

So what does that mean for your marketing efforts and your lead generation strategies? In this article, we give you some best practices that are not only going to help your construction company generate leads today, but also tomorrow, next week, next year, and well into the 2020s.

Focus on local search results

The first strategy for boosting your lead generation is to ensure that your construction company is listed in as many online search directories as possible. And definitely go local. You want to make it as easy as possible for people who live and work in your region to find your company in local search results.

The good news is that you don’t have to scour the internet to find every outlet, portal, social media page, and review site where your company gets an online mention. There are applications out there that will scan the furthest reaches of cyberspace and tell you everywhere your company appears online. This makes it easy to ensure that your contact info is correct in all your online listings.

Boost your content marketing

A business card and a sales pitch simply won’t cut it in today’s digital world. Construction companies, like any enterprise or customer-facing business today, need to focus on inbound marketing strategies — like content marketing — to maximize lead generation. While there are many tried-and-true content marketing best practices out there, you only need to know some basics in order to begin.

First, keep a company blog and post on it regularly, as in once or twice a week. If you can publish posts under the company owner’s byline, thereby putting a face to the operation, all the better. Also focus on creating useful, compelling content. To do this, you need to know your audience. Lucky for you, that isn’t so difficult in the construction business: your audience is anyone in the home service/building industry. So focus on publishing how-to blog posts and tutorials on subjects related to the industry. Examples might include “home-building mistakes to avoid,” “how to install drywall for beginners,” or anything else in your wheelhouse.

Also consider producing engaging video content, like tutorial videos in the home-improvement space. Audiences love videos, and if you can link to interesting video content in your email marketing, you’ll generate greater engagement. More on this below.

Elevate your email marketing game

No modern lead generation strategy is complete without good old-fashioned email marketing. Regarding best practices, there are some strategies that construction companies can implement in order to get more sign-ups and grow your list.

For starters, incentivize the audience you’re trying to attract. Tie your email strategy into your content marketing and offer visitors some useful/educational tidbit for free in exchange for their contact info. Normally in the B2B world, many companies offer things like white papers and ebooks in exchange for a sign-up. As a construction company, you’ll want to offer something that aligns with your target audience. Homeowners’ guides are a good idea — you can offer your potential subscribers how-to guides on everything from waterproofing a shed to building a backyard deck to installing thermostats to properly caring for hardwood floors. And as mentioned above, include links to your video content when possible.

There are some other email marketing best practices to adhere to that are equally crucial. First, if your content has driven your audience to your email list sign-up page, only ask for their email address and first name. Asking for more info than that can feel intrusive and might scare them away. Once they are subscribers, send emails at regular intervals (once a week), and continue to offer them more valuable content. Moreover, be sure to include the recipient’s first name in the subject line of the email. Even that little bit of personalization can really boost open rates.

Display your contact info boldly

Modern lead generation strategies aren’t only comprised of digital means. There is still a place for the savvy lead-harvesting tactics of years past. Take your contact info, for example. Certainly, you’ll want this information to be easily accessible to your audience. And if you’re using the inbound marketing strategies mentioned above, you’ll likely be directing a lot of traffic to your homepage and social media sites, where you’ll want that contact info boldly displayed.

But just as crucial is where people see your contact info out in the real world. If, as a construction company owner, you have various contractors doing work in different neighborhoods, then you’ll want your contact info displayed on each and every work vehicle. Just having people in the neighborhood see your company name on your trucks goes a long way toward boosting brand recognition and generating interest.

Optimize for voice search

With the rise of Apple’s Siri and Amazon’s Alexa, as well as Google Now and Microsoft’s Cortana, we can read the writing on the wall: virtual assistants are the wave of the future. And although this technology is still in its relative infancy, AI engines allow it to evolve at staggering rates. Various statistics portend how dominant it will be in the future. For example, according to comScore, 50% of all searches done in 2020 will be voice searches. Moreover, 30% of all searches will occur without even looking at a screen.

What this means for construction businesses is that today’s customers have eschewed the phone book and are moving away from typed online searches in favor of home smart speakers. There are realities, however, to this brave new world that businesses must take into account. For example, when a person performs a voice search, the results are ranked by proximity and online user reviews. So construction companies need to know that optimizing for voice search means simultaneously boosting customer service along with nipping bad reviews in the bud or resolving them as soon as possible.

Get recommendations from related industries

To be successful, you’ll obviously want to amass a long list of good reviews from satisfied customers. But to generate more leads, you’ll also want non-competitive businesses in related fields to recommend your company to potential clients. The way it works is simple. Whenever you recommend a business to a customer, be it HVAC, roofing, electrical, or plumbing, let those businesses know. Then, make it known that you would greatly appreciate it if they recommended your construction company to their customers, should the topic ever come up.

The home-service field is a small world, particularly when you’re limited to one part of a city or region. You’ll want to be part of a circle of businesses all recommending each other to ensure that a rising tide does indeed lift all boats.

Conclusion

Implementing the six practices mentioned above may seem like a daunting task if your construction company has yet to get in on the inbound marketing game. That’s why, to bring all your efforts together and ensure everything runs efficiently, we also recommend investing in a solid CRM for construction companies. It’s the best way to organize your operations, manage your customers, and grow your business all at the same time.

The post 6 Lead Generation Best Practices for Construction Companies appeared first on Method.

A construction CRM should keep all the information you need about prospective customers at your fingertips. In addition, the software should integrate fully with your existing business processes, allowing you to track customers throughout their lifecycle. To help you select the perfect software for your business, this article will look at five key features that any construction CRM should have.

1. Project management

Project management in construction means tracking each bid as it moves through the pipeline. Any CRM you choose should have features that complement your existing project management software. Ideally, CRM software should allow construction companies to create estimates on the fly and send them to prospective clients. In addition, it should allow your team members to schedule follow-up tasks for each project.

The primary benefit of project management in construction is to avoid missing opportunities to secure new projects. Consequently, your CRM should send automatic e-mail reminders to ensure that tasks don’t fall through the cracks. It should also allow you to log customer interactions directly from your inbox, allowing bid information to be easily updated.

It’s important for construction businesses to focus on the hottest bids since they typically have many pending projects. A CRM’s project management features should help you prioritize bids throughout each stage of the pipeline, from prospecting to the proposal. A common approach is to allow users to assign a value to each bid, indicating its potential revenue.

2. Customer history

The ability to view a customer’s entire history in a single location is an essential requirement for a construction CRM. This typically involves maintaining a shared list of bids, allowing you to deliver world-class service to each customer. A shared list helps you maintain strong relationships with your contacts, regardless of who answers your phone.

Having all of your contacts in a single location is important in construction because of the amount of collaboration required. For example, contractors must deal with contacts such as architects, inspectors, and subcontractors while working on a single project. A CRM containing everyone’s contact information makes it easier to identify the person needed for a particular task.

A complete view of customer history also allows you to manage relationships proactively. Your CRM should allow you to schedule tasks reminding you when it’s time to touch base with a customer. This practice helps to ensure that you can identify and correct potential problems before customers become dissatisfied with your service.

3. Complete workflows

A CRM that offers end-to-end workflows allows you to automate many of the steps involved in managing a construction business. In particular, manually entering the same data more than once becomes tedious when it has to be done for every project. Automated workflows allow you to send invoices and receive payments in less time, with fewer people involved.

Another desirable feature in a CRM is the ability to customize these workflows to meet changes in requirements, which is a common occurrence in construction. Customization allows a single system to perform various distinct functions, which eliminates the need to implement multiple software systems.

Construction CRM software should also reduce redundancy by synchronizing with your existing software programs, such as QuickBooks. This allows you to easily create an estimate, convert it to a sales order and issue an invoice in either program without needing to re-enter data. Syncing with QuickBooks also allows your customers to pay invoices online without your team needing access to QuickBooks.

4. Payment services

The ability to accept credit card payments is an essential feature for a construction CRM platform. This feature should also support ACH payments made in the United States. Convenient payment options in your CRM help you simplify the payment process and get paid faster. Some CRMs enable users to send invoices with a link to an online portal, which lets their customers view and pay balances online.

The main advantage of a CRM that offers payment services is that it greatly reduces the risk of error during the payment process. Sales team members will no longer need to process payments manually, which requires multiple steps. This feature also eliminates the need for employees to have access to QuickBooks when processing payments. This is particularly beneficial to construction businesses whose team members are often in the field.

5. Email integration

The integration of a CRM with existing email services is becoming an increasingly important feature in construction. These integrations allow you to view a customer’s personal data from your inbox, including their name, address, and phone number. They also allow you to see account data such as balance, past transactions, and other activities. Additional capabilities of CRM email integrations should include the ability to add new contacts and save new information without leaving your inbox. A construction CRM should also offer email integrations with a high degree of customization, allowing them to meet the distinct needs of construction businesses.

The greatest benefit of email integrations is that they streamline your workflow by eliminating the need to switch between tabs. Instead of pasting emails into your CRM, you can easily log interactions with customers right from your email program. The ability to work within your inbox can significantly increase your operational efficiency.

Summary

CRM software is an essential tool for streamlining operations in a modern business. It’s particularly useful for construction businesses, where team members are often spread across multiple locations. Construction businesses also rely on CRM software to track interactions with their many contacts. By eliminating the need for double data entry and consolidating many business functions into a single platform, construction CRM software can dramatically reduce a company’s workload and improve efficiency.

The post Key features of a construction CRM appeared first on Method.