Industry Deep Dive – Construction: How to Effectively Manage Subcontractors Using EOS

Jul 21, 2023 | Listen

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  • Industry Deep Dive – Construction: How to Effectively Manage Subcontractors Using EOS
Industry Deep Dive - Construction: How to Effectively Manage Subcontractors Using EOS

Construction is a complex field where creativity transforms plans into actual physical structures. The challenge lies in managing these building projects, which can get quite chaotic, especially when dealing with subcontractors. Success in this industry requires serious skills and a keen eye for detail. So, how can EOS help simplify things in this high-action industry where effectively managing people and processes is vital?

In today’s episode, John Glover and I explore the intricacies of the construction industry. He’ll share effective success strategies for project and people management used in construction that can be directly applied to your business.

John is a Small Business Coach, Fractional COO and Integrator, Personal Growth Consultant, and founder of Core Integration Coaching. He helps entrepreneurs, business partners, organizations, and individuals develop a roadmap to get what they want from their businesses and life.

As a passionate coach and facilitator, he’s helped many set strategic goals, develop customized plans, and execute more effectively to obtain their desired results.



Timestamps for this week’s episode

03:54 Managing people in construction without EOS processes and communication can be more challenging


14:17 Steps to prevent mistakes and misquotes that can affect your profitability


16:35 Small business owners need to delegate responsibility

19:23 How small businesses benefit from the EOS platform


42:14 Adopting EOS and its onboarding processes is vital for finding, training, and retaining the right employees for success


Managing people in construction without EOS processes and communication can be more challenging

Managing people in the construction industry is crucial for success, but it can be challenging without proper EOS processes and communication.

Owners often face frustrations when expectations are unmet, resulting in profit loss, dissatisfied customers, and internal disruptions.

“Never allow a subcontractor to represent you and your company, especially over major issues or miscommunication between the homeowners.” – John Glover

To address these issues, it is essential to take the following steps:

  • Clearly define and communicate expectations to ensure everyone is on the same page. This helps minimize costly mistakes and rework.
  • Foster open lines of communication and encourage feedback. Effective collaboration and timely issue resolution can prevent delays, legal issues and financial losses.
  • Conduct thorough due diligence when hiring subcontractors to ensure their competence and reliability. This reduces the risk of subpar workmanship, which can lead to profit loss and unhappy clients.
  • Implement performance evaluations for ongoing monitoring and feedback. This allows for continuous improvement and identifies opportunities to optimize profitability.


By implementing these strategies, construction businesses can create a more productive and harmonious work environment while maximizing profitability and operational efficiency.

Steps to prevent mistakes and misquotes that can affect your profitability

Trust and verify employees

Giving your team autonomy is great. But you still need to verify their work and ensure they meet the established standards. Trust should be coupled with a system of checks and balances to maintain quality and prevent costly errors that might even close your business.

Have oversight for change orders

Change orders are part and parcel of any service offering, so it’s good to have someone present on the job site to witness and assess the situation firsthand. Phone conversations or even video calls may miss critical details, and having a representative on site will ensure all parties are aligned and involved, minimizing the risk of miscommunication.

Don’t let subcontractors represent your company

It’s best to handle any changes or other issues directly and not delegate the responsibility to subcontractors. By taking charge and addressing the matter personally, you can ensure clear communication, resolve disputes, and protect your company’s reputation. You’ll also foster goodwill towards your client

Small business owners need to delegate responsibility

It’s not easy for many small business owners to delegate. But here are some steps to take to get started: 

  • Establish a comprehensive people process, including recruitment, onboarding, and skill development.
  • Align employee skills with job requirements, so your new hires will be effective in their seats.
  • Train your employees to make independent but informed decisions, especially when interacting with customers. 
  • Foster a shared understanding of the company’s vision and expectations amongst your team members.
  • Delegate responsibilities to team members based on their skill sets and strengths. Don’t ask your numbers guy to do your graphic design requirements, for example. 
  • Provide necessary support and guidance so your employees can thrive. 

By implementing these steps, successful small business owners can successfully delegate responsibility, focus on their core strengths, and empower their team members for collective growth and success.

How small businesses benefit from the EOS platform

  1. Regular meetings: 

Dedicate time to productive meetings where you review progress, tackle challenges, and execute plans. These meetings are crucial touchpoints to assess performance, address issues, and align efforts for the upcoming week.

  1. Set Clear expectations: 

Ensure everyone understands their roles, responsibilities, and goals. This way, you enhance accountability, minimize confusion, and foster a shared understanding of how each team member will contribute to the overall vision.

  1. Set up an effective onboarding process: 

Many companies fail to onboard their new hires properly, expecting them to dive right into the work. But if you equip them with the necessary training, resources, and information to excel in their roles, you will set them up for success. This includes introducing them to the company culture, clarifying job roles, and providing easy access to visual references or standard operating procedures (SOPs).

“It is critical you start out with a people process because without that, things will eventually fall apart, or you won’t be able to reach a certain level past where your current business is today.” – John Glover

Actionable steps

Here are actionable steps you can take within the next week or two to get started on developing your people process:

  • Create a one-page document that outlines your plan. Think of it as your roadmap to success.
  • Find the right fit

Attracting the right candidates is crucial. Think about where your ideal employees are likely to be and utilize those channels. Leverage online job boards, tap into your network, and explore social media platforms to connect with potential candidates who align with your company values.

  • Make your interviews count

Go beyond just assessing skills when you speak to candidates. Structure your interviews to evaluate cultural fit, passion, and motivation. Ask your key team members to take part in the interview process to gather different perspectives and ensure a well-rounded evaluation.

  • Plan for a smooth onboarding journey

Immerse your new hires into your company culture, introduce them to your policies and procedures, and equip them with the necessary resources to hit the ground running. Provide a supportive environment where they can learn, ask questions, and feel connected to the team.

  • Nurture relationships

Support new hires during their first 90 days and even beyond. Schedule regular check-ins to listen to their experiences, address challenges, and provide guidance. This will go a long way in building trust, open communications, and a successful long-term relationship.


Summary

  • Effective people management in construction requires clear communication, thorough due diligence, and performance evaluations to prevent profit loss, dissatisfied customers, and internal disruptions.
  • Establish trust, provide oversight, and personally handle critical matters to prevent mistakes and misquotes and protect profitability.
  • Empowering employees to make informed decisions enables small business owners to focus on their strengths while driving growth and delivering consistent customer experiences.
  • Small businesses can drive success by implementing the EOS platform through regular meetings, clear expectations, and an effective onboarding process.
  • A strong people process and structured onboarding system are essential for small businesses to find, train, and retain the right employees to foster growth and financial success.

Transcript

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About guest – John Glover

Coach, Fractional COO & Integrator

Core Integration Coaching

Website: https://coreintegrationcoaching.com/

LinkedIn: https://www.linkedin.com/in/john-glover

Schedule a Discovery Call with John: https://coreintegrationcoaching.com/contact-me

Email: john@coreintegrationcoaching.com


About host – Kathy Svetina

Kathy Svetina is a Fractional CFO for growing small businesses with $10M+ in annual revenue.

Clients hire her when they’re unsure about what’s going on in their finances, are stressed out by making financial decisions, or need to structure their finances to keep up with their growth.

She solves their nagging money mysteries and builds a financial structure with a tailored financial strategy. That way they can grow in a financially healthy and sustainable way.

Kathy is based in Chicago, IL and works with clients all over the US.

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