The ProfitDig Blog

A construction project will generally involve numerous types of specialties. Nobody knows how to do everything! That’s why General Contractors hire subcontractors to perform specific parts of the job in which they have expertise. A project generally starts by having to dig into the ground – excavation! Excavation is a specific type of construction work […]

Rapidly rising materials costs are a real concern for any construction contractor, especially in light of the price inflation we are experiencing these days. But there are strategies you can use to mitigate the risk and save your profit. Here are ten strategies you can use to account for rising materials prices: Including a contingency […]

An escrow account is essentially a savings account that’s managed by your mortgage servicer. How can this be helpful in managing the cashflow in construction? If you are thinking of becoming self-sufficient in the construction industry, investing your profits into an escrow account is one thing that you might want to consider. YOU NEED TO […]

The hard bid estimating process is a widely used method of estimating construction costs and time. The process involves listing the various items that go into the building, such as labor and materials, and calculating their total cost. A hard bid is a rough estimate of construction cost. In other words, it is a starting […]

AIA contracts are standard forms used in many construction projects across the United States. It outlines the responsibilities of both the contractor and the owner and can be used as a legal agreement between both parties. In this article, we will discuss the key points that contractors need to know about the AIA contracts. We […]

Here are some items that represent MAJOR dangers to your business. Putting All Your Eggs in One Basket One thing that you’ve got to be aware of is something my Dad always warned about (even though we ended up falling into the same trap), which is putting all of your eggs in one basket. That […]

Excerpt from Digging for Profit: Secrets to Success in the Construction Industry, by Jeff Spencer and Jerry Work   There are going to be times when you can’t self-perform every part of a project yourself. It’s very common to be looking at a project, especially something you really want to bid on, that is above […]

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 […]

We talk a lot about job bidding because it is an absolutely critical skill if you want to start and grow a successful construction firm. This article summarizes some of our best job bidding advice and contains several videos in which we discuss various aspects of the bidding process. Research the Job Thoroughly I would […]