For construction professionals starting their businesses, success depends on more than just skill and dedication. Mastering the Construction Startup provides an essential blueprint for creating the foundational infrastructure every contractor needs to achieve sustainable growth and upon which every strategic decision will be made. Written by industry expert Nick B. Ganaway, this real-world guide details how to strategically align people, systems, and processes with business goals to proactively address risks, reduce errors, and build lasting operational resilience.
Grounded in decades of general contracting experience and research, each concise and accessible chapter breaks down the key components of sustainable success, such as such as identifying elements of a solid legal and financial base, establishing relationships with essential professionals, and creating a culture that attracts and retains the best talent. Throughout the book, Ganaway, often engaging directly with the reader, offers expert insights on everything from the role of the contractor to elements of leadership to advantages of niche contracting.
Empowering contractors to set up their companies for success during the challenging early years and beyond, Mastering the Construction Startup: - Provides a structured, step-by-step framework for building business infrastructure in the construction industry - Discusses the causes for contractor failure and how to avoid them - Features checklists, sample forms, and a unique “Summary Checklist for Startup Businesses” to ensure nothing critical is overlooked - Contains case studies highlighting common startup pitfalls, including a personal account of a major business crisis and recovery - Offers detailed strategies for securing funding and presenting confidently to lenders and investors - Explains various risk management techniques to help contractors avoid common industry pitfalls and legal challenges
Mastering the Construction Startup: A Business Infrastructure Guide is perfect for trade school and college courses in construction management and entrepreneurship, and a must-have resource for contractors, project managers, and subcontractors at all levels.
Table of Contents
CONTENTSAuthor’s Disclaimer
Why Read This Book?
What is Business Infrastructure?
You’re Not Alone
What You Can Learn
About the Author
Introduction
PART 1
THE CONTRACTOR
Chapter 1. Entrepreneurial Characteristics
It’s Not Easy
Your Dual Role as Owner and Manager of Your Company
Passion for Your New Baby is Good, but…
Chapter 2. Company Culture
Chapter 3. Elements of Leadership
Vision and Strategic Direction
Emotional Intelligence
Communication Skills
Adaptability and Resilience
Integrity and Ethical Leadership
Team Development and Empowerment
PART 2
REGULATORY MATTERS
Chapter 4. Business and Government Regulations
Incorporating Your Company
Registration in Other States
Registered Agent
Professional Licensing
Municipal Business Licensing and Permitting
Corporations and LLCs
The LLC
The S Corporation
The C Corporation
Sole Proprietorship
Partnership
Partnership Agreement
Establishing Your Corporate Identity
Choosing the Name for Your Company
PART 3
GETTING IT DONE
Chapter 5. The General Contractor
The Owner - Contractor Relationship
Managing Risk
Construction Type
Union or Non-Union
Managing the Common Causes for Contractor Failure
Increase in Project Size
Changing Your Geographic Area
Taking on a New Type of Construction
Lack of Management Maturity
Task Dependency Software
Construction Document Software
Construction Bookkeeping Software
Awareness of the Economy and Other Business Threats and Opportunities
Negotiation
Proactively Manage Budgets
Demand High Quality
Cultivate Relationships
Meet the Schedule
Stakeholder Communication
Human Resources Management
Trust
Marketing
Chapter 6. Subcontractor Management
Effective Subcontract Documents
Trust
Prequalification of Subcontractors
Subcontractor Proposal and Scope of Work
Notice to Proceed Precaution
Official Notice
Inspection of the Subcontractor Work
Topographical Site Survey
Differing Conditions
Independent Contractor vs Payroll Employee
IRS Regulations for Independent Contractors
Managing Change Orders
Effective Change Order Procedures
Chapter 7. Construction Disputes
Design Defects
Workmanship Defects
Negligence
Changes in Scope
Changes in the Work
Contract Terms and Conditions
Payment
Methods of Dispute Resolution
Negotiation
Mediation
Arbitration
Chapter 8. Project Delay
Causes for Delay
Be Prepared
Chapter 9. Contracts and Agreements
What is a Contract?
The Value of a Written Agreement
Types of Construction Contracts
Lump Sum Contract
Unit Price Contract
Cost-Plus Contract
Incentive Contract
Design-Build Contract
Getting Paid
Example Lawsuit
PART 4
RESOURCES
Chapter 10. Lawyers
Construction Industry Lawyer
General Practice or Business Lawyer
Employment Lawyer
Workers Compensation Lawyer
Real Estate Lawyer
Mergers & Acquisitions Lawyer
Civil Litigation Lawyer
Tax Lawyer
Intellectual Property Lawyer
Personal Injury Lawyer
Immigration Lawyer
Estate Planning Lawyer
Deal Making
Chapter 11. Accounting and Taxes
Tax Preparation
The Income Statement (Profit and Loss Statement)
The Balance Sheet
Statement of Cash Flows
Summary
Chapter 12. Hiring the Right People
So, Who Are the Right People?
Tips For Interviewing Prospective Employees
Job Benefits
Jobsite Facilities and Conveniences
Onboarding New Employees
Employee Meetings
Employee Handbook
Non-Compete Agreement
Chapter 13. Banking
Loan Documentation
Personal Guarantee
Variable Rate Loans
Credit Unions
Private Lenders
Chapter 14. Construction Insurance
General/Commercial Liability Insurance
Workers Compensation Insurance
Builders’ Risk Insurance
Business Owners Policy
Product Liability Insurance
Professional Liability Insurance
Commercial Property Insurance
Fidelity Insurance
Home-Based Business Insurance
Co-Insurance
Making Claims
Performance and Payment Bonds
Performance Bonds
Payment Bonds
Summary
Chapter 15. Business Plan
Purpose and Evaluation
Presentation for the User
Proposal Guidelines
PART 5
IDEAS
Chapter 16. Niche Contracting
Advantages of Niche Contracting
Additional Niche Advantages
Chain Store Owners and Franchisors
Chapter 17. Outside Board of Advisors
Is an Advisory Board Necessary?
Chapter 18. Case Study of an Existential Business Crisis - A Personal Account
Another Shoe Drops
A Perfect Storm
Looking Back
A Tough Decision
The Personal Effect
Success, at Last
Chapter 19. Investing in Real Estate as a Parallel Business
Owning STNL Properties - a Successful Proven Strategy
General Characteristics of Single-tenant Net-lease Properties
The STNL Marketplace
Primary Factors in Pricing an STNL Property
Replacing the Property Early
STNL Properties vs the Stock Market
The Case For Investing In Real Estate
Dealing With Capital Gains Tax
The 1031 Tax-Deferred Exchange
In Conclusion
Chapter 20. Summary Checklist for Startup Businesses
What to Do First
Chapter 21. Useful Reading
Acknowledgements
Appendix Contents
Appendix A - Partnership Agreement Example
Appendix B - Non-Compete Agreement Example
Appendix C - Business Loan Proposal Form Example
Appendix D - Business Plan Example 1
Appendix E - Board of Advisors Agreement Example
Appendix F - Employee Handbook Example
Appendix G - Independent Contractor Agreement Form Example
Appendix H - Business Plan Example 2
Appendix I - Acord Certificate of Insurance Form Example
