The ProfitDig Blog

Excerpted from the book \”Digging for Profit: Secrets to Success in the Construction Industry\” by Jeff Spencer and Jerry Work.   So you have just bid on a job, or part of a job as a subcontractor, and you’ve received a contract back from the general contractor, or whomever you’re going to be working for. […]

In construction, “GMP” stands for “Guaranteed Maximum Price.” It is a contract whereby the General Contractor guarantees that the total cost of a project will not exceed a set amount. It is often a sort-of design-build kind of thing because the GC and its subs do the design work along the way (especially during the […]

Constructiondive.com recently published an article that we thought did an excellent job of explaining the surge in lumber prices. You can read the complete article here. Here is a bullet point summary of the items discussed in the article: Many sawmills closed down during the recession of 2008 – 2009, reducing supply. Tarriffs on Canadian […]

As we discussed in our last issue, 2021 is going to be a competitive year. If you want to succeed, you need to manage your business well (professional job bidding, accurate costing, etc.) AND you need a marketing plan to create new business! So let’s talk about the basic components of a solid marketing plan: […]

Construction activity is slowing down in some places, so this is a good time of the year to evaluate your business from a high level standpoint and begin considering what you can do to build a bigger, more successful company. We talk often about strategies for better performing the actual work, but today we thought […]

Here are some of the major recent upgrades to the ProfitDig system that will save you time and make your job easier: Project Manager viewing restrictions. There was some concern from larger companies that Project Managers had too much visibility on employee hourly rates/salaries. The company owners do not want all Project Managers to know what […]

It doesn’t matter how good you are at performing the work for which you are hired – if you don’t manage the money coming in and going out, you will end up broke. If you own a construction company, you’ve probably got a lot of money going out, and hopefully some moneycoming in, but at […]

If you’re leasing equipment, that’s not a bad thing. A lot of time that is an especially good decision if you are just starting out. If you get into a situation where you are going to have a long-term need for a piece of equipment – 5 or 6 months or longer – we recommend […]

I want to talk about the importance of choosing the right personnel for your construction company and managing your expenses. These are two things that will have a major impact on the success of your business. There’s nothing that will give you a bad rep any quickr than having someone onsite doing a project in […]

Dave Ramsey is best known for his work in personal finance, but some of his ideas can be applied to managing your company’s finances. Ramsey talks about using an envelope system for managing your money. I’m going to talk about how a system like that can work for a construction company just like it does […]