How to Make Money in Pre-Construction
In this blog, we’re diving into how you can actually make money during the pre-construction phase when most others are bleeding cash. We’ll explore real stories, proven strategies, and affordable resources you can use right now to set yourself up for success.
The Big Idea: Pre-Con as an Investment, not a Cost
Pre-construction can seem intimidating because it requires money upfront. But here’s the truth: pre-construction saves you more on the back end than it costs up front.
Jason shares a powerful quote from the president of Lean Core:
“We want to deliver a project with the highest quality, the shortest possible duration, and the lowest overall total project cost.”
Most contractors mistakenly avoid pre-con costs, only to bleed cash during execution. The result? Blown contingencies, damaged fees, and missed deadlines.
A Painful Lesson:
Jason shares a story about a project where skipping field engineers to “save” on pre-con costs led to a $450,000 mistake in floor leveling. Hiring field engineers would have cost at most $210,000. The lesson: you always pay either in planning or in fixing.
What Pre-Construction Helps You Achieve:
- Targeted Design: Design to a cost rather than cutting features later.
- Scope & Fee Protection: Ensure your general conditions and requirements stay intact.
- Constructability Reviews: Guide design in real time to avoid major issues later.
- Detailed Planning: Use tools like Takt planning and Last Planner for reliable project outcomes.
Real Data Doesn’t Lie:
From the book How Big Things Get Done:
- Only 48% of projects hit budget.
- Only 8% hit budget and time.
- Only 0.5% met the owner’s expectations on time and budget.
Why? Because pre-con was skipped. Problems were discovered during construction, not before. When discovered late, they’re 10x more expensive.
Pre-Con is Strategic:
Even when owners don’t pay for it, Jason’s construction company invests in pre-con because a $50K investment up front prevents hundreds of thousands in losses later. It’s that important.
Pre-Con Also Helps With:
- Early involvement of trade partners.
- Long lead procurement.
- Design accuracy.
- Site coordination.
- Utility planning.
- Avoiding scope gaps.
- Maintaining contingencies.
- Meeting substantial completion dates.
Want to Know Exactly How to Do It?
If you’re wondering how to implement all of this practically, Jason has you covered. Check out the book “Elevating Pre-Construction Planning” available on Amazon. It gives you a step-by-step process to win at pre-con.
Key Takeaway:
Investing in pre-construction isn’t a luxury, it’s your best chance to protect profit, maintain quality, and deliver on time. Contractors lose money not because of pre-construction costs, but because they skip them.
If you want to learn more we have:
-Takt Virtual Training: (Click here)
-Check out our Youtube channel for more info: (Click here)
-Listen to the Elevate Construction podcast: (Click here)
-Check out our training programs and certifications: (Click here)
-The Takt Book: (Click here)
Discover Jason’s Expertise:
Meet Jason Schroeder, the driving force behind Elevate Construction IST. As the company’s owner and principal consultant, he’s dedicated to taking construction to new heights. With a wealth of industry experience, he’s crafted the Field Engineer Boot Camp and Superintendent Boot Camp – intensive training programs engineered to cultivate top-tier leaders capable of steering their teams towards success. Jason’s vision? To expand his training initiatives across the nation, empowering construction firms to soar to unprecedented levels of excellence.
On we go