Construction Divisions

cpdatlanta

What Divisions Should A Small Sized Construction Co. Perform Itself And Whats The Rational For Selecting The Divisions. Thanks In Advance. School Project...

Arizona

Trying to make an honest living doing something they love. This is a very vague question.

cpdatlanta

SITE WORK, ETC. WHICH DIVISIONS WOULD BE WORTH COMPLETING VERSUS SUB CONTRACTING AND WHY.

cpdatlanta

COMMERCIAL

PipeGuy

Your question begs a thousand others. For starters, do you mean a specialty trade contractor or General Contractor? In both cases it typically will have more to do with the experience and background of the principals then it does with any other rationale - the old "stick with what you know" rule of thumb.

When it comes to GC's, many of the CSI Divisions encompass a broad enough scope that a small, commercial building, GC will perform some items in a variety of Divisions. Working capital requirements and the availability of a skilled workforce will also play a major role. Around my neck of the woods, you'll probably see more small GC's doing tenant fit-out work that spans various items in DIV's 6 - 9 than you will doing any thing else. When you get into the bigger companies they start doing things that really compliment their target markets. GC's that build big box "tilt-ups" will specialize in DIV 3 while those that build concrete block buildings will do their own masonry. Guys that do medium size office buildings do tenant work because the "shell" contract can transition nicely into the "fit-out" contract.
If you can narrow the scope of your question you're more likely to get more informative answers. Good luck on the project

hatchet

Well said PipeGuy.
I currently work for a large multi-billion a year contractor and we do self-work in Div 3,4, and 8 - (concrete, masonry, and doors and hardware for those who don't know what csi divisions are). I'll be starting up a residential GC firm this year and we'll do self-work in Div 3, 6, 7, 8, 9, (concrete, rough framing and millwork, roofing, doors and windows, and flooring) - the main reason why is that pretty much hits all the scopes from start to finish so we will have someone onsite throughout the duration of the project.

__________________
Rich
WIT Construction Co.
Superior MT Contractor

cpdatlanta

supposed to be a small company about 5 years old on a million dollar project. So not much working capital. Mainly wanted to know why it would be advantageous to do some divisions versus others. Work force would not be a problem to find located in Atlanta. Why would one division be better to tackle than another for a small time construction company. I hope this is more narrow. Thanks for your responses

hatchet

Mostly due to skilled workforce. You don't want to hire an electrician and expect them to finish drywall or frame the house.

__________________
Rich
WIT Construction Co.
Superior MT Contractor