The ONLY Unfair Advantage You Have in Construction
(hint: it’s not AI, not software, or another “system”)
I just watched a $5 million construction company implode in under six months.
Not from lack of work.
Not from underbidding.
Not from shoddy workmanship.
Their key people lost faith in their leadership.
So they left.
Three weeks later, those same people launched their own company. They took the best clients with them. Brought the best subs along too.
That new business is thriving now
Why?
Because in service businesses, your people aren't just your competitive advantage.
They are your business.
The Collins Connection
Jim Collins knew this when he wrote in "Good to Great":
"People are not your most important asset. The right people are."
After 40 years in construction, I've learned this is an understatement.
The right people aren't just your most important asset - they're often your only sustainable advantage.
The People Crisis No One's Talking About
Our industry runs a 56.9% turnover rate—nearly double the national average. One Texas contractor reported 400% annual turnover in 2023.
Think about that: Their entire workforce turned over four times in twelve months.
These aren't workflow problems. They're people problems masquerading as operational challenges.
The young talent we desperately need?
They're walking out the fastest.
Workers under 25 show 64% turnover rates. And contrary to popular belief, it's not just about money.
Half of construction workers say they'll switch jobs for just $1-4 more per hour.
All the systems in the world can’t fix that.
The $300K Lesson
I helped a handyman scale from $300K to $3M in thirty-three months. The systems were perfect. The processes flowed. Revenue climbed.
Then it collapsed.
Why? The owner never bought into developing his people. Never trusted the process. Never believed in his team.
His best craftsmen—absolute studs on the job site—lost faith. The whole operation dwindled back to where it started.
All the systems in the world can't fix a people problem.
What Actually Works
The construction companies that sustain growth understand a simple truth: People amplify systems, not the other way around.
I've seen this play out hundreds of times:
Companies invest in project management software, then hand it to field teams who don't want to use it
Why? Because their leaders don’t model the behavior
Meanwhile, other companies build multi-million dollar operations on half-broken spreadsheets—because the leaders and their teams care
The difference isn't technology. It's trust.
The Hidden Cost of Faking It
Every departing employee costs at least 20% of their annual salary to replace. But that's just the visible cost.
The real price walks out the door with them:
Institutional knowledge
Client relationships
Team chemistry
Cultural momentum
You can't put a price tag on those losses. But they show up in your bottom line anyway.
Building Different
Want sustainable growth? Start here:
Develop your leaders first
Create clear career paths
Build trust before systems
Measure what matters to people, not just profits
The best construction workers are self-motivated. They don't need to be managed.
They need guardrails.
They need your trust.
And they need to see you modeling the behaviors you expect out of them
Your Real Advantage
That $3M company that imploded? They had excellent systems. State-of-the-art software. Perfect processes.
What they didn't have was people who believed in working there.
The competitor that launched from their ashes?
They started with relationships. Everything else—systems, processes, procedures—they're building as they go.
Because you can copy:
Pricing strategies
Equipment choices
Management systems
Operating procedures
But you can't copy culture. You can't replicate trust. You can't duplicate the relationships that keep great people choosing you every morning.
That's your only sustainable advantage.
Get the right people, and they'll make any system work.
Get the wrong people, and no system will save you.
That's not philosophy. After four decades in construction, it's the only reliable truth I've found.
So you can keep your fancy software, your optimized operating system, your quotas, your pep talks, and whatever else you’re selling…
People first. Everything else follows.
—Paul
🧰 Need a little help?
I thought you'd never ask:
1. Quick Fix Focus Call – $75 - Let's get it done. One-hour consult to troubleshoot tech, workflow, permits, or crew issues. Clear answers. All action. 🚀
2. System Tune-Up – Starting at $950 - Audit and optimize your tools (e.g., Buildertrend, JobTread, Procore, G-Suite, etc.). Includes SOP review, automation tweaks, and hands-on improvements to streamline your operations. ⚙️
3. Full Ops Overhaul – Custom Pricing - Full back-office transformation. I handle tech setup, SOP creation, subcontractor systems, permit coordination, and team training—so you can scale without chaos.
Schedule a call with me here.