The construction industry is on the rise. As of 2022, the spending on private construction has been at an all-time high. This industry has existed since the beginning, from building pyramids to erecting lavishly designed skyscrapers today. While this industry keeps growing, the issues that existed decades ago still hinder the timeline of construction projects by causing delays with no real solutions to cater to the prevalent problems.
Some of the most common problems that have existed since forever in this industry include inadequate communication, project management flaws, delays, labor shortage, cost overrun, and cash flow. These are just a few of the problems that make the completion of projects challenging. The most significant problem for companies in this industry is cash flow and cost overrun. These companies usually operate at a negative cash flow which creates problems. From processing payrolls to rolling out payments to the vendors, it pushes companies into a vicious cycle, stepping out of which becomes impossible.
This gives rise to much more significant issues, the inability to curate relationships with employees, vendors, and even clients. When building a successful general contracting business, it is critical to developing lasting relationships. The workforce and the management should be tightly knit as it helps boost productivity by enhancing collaboration between employees and allowing timely completion of projects. Additionally, having strong relationships with vendors allows a GC firm to delegate tasks easily to trusted vendors with whom the company has worked earlier. Choosing a new vendor for every project requires companies to assign more resources to ensure the vendors fulfill the requirements. The most critical aspect of running a GC is establishing and nurturing client relationships.
The companies in the construction industry are so caught up with cash flow issues and internal matters that they fail to pay attention to relationship building. Jesse Lane, the founder and CEO of J. Lane Construction has stepped into the industry to put an end to this problem and help companies curate sustainable relationships with clients, vendors, and employees.
Jesse Lane values relationships over money, which is why he has developed methodologies and systems that allow him and the employees to develop relationships.
For any company to build strong relationships, its internal operations must be perfectly sorted with seamless processes. This is the only way the resources will have the room to build and maintain relationships that ultimately help a company succeed. Jesse realized this and decided to ultra-systemize the company’s operations. He developed three different websites; one for the clients, another one for the vendors and subcontractors, and the third one for the employees.
These websites offer end-to-end assistance, allowing all to interact with the company in the most effective manner. The clients can access the history of the company’s projects, read the reviews and testimonials, and get all the required information about the company through the website. The vendors can also check schedules and other needed details from the website. The internal website, on the other hand, serves as an operation manual for the employees and offers them the necessary information to perform at their full potential.
Linking Project Management with Cash Flow
While he expertly systemized his company’s internal and external operations, he also worked to link his project management app with the bookkeeping app. Jesse utilizes BuilderTrend to manage his projects. Clients can also get insights into their projects through images and videos. They can always stay connected to their project managers and get an update on their projects. For bookkeeping, Jesse uses QuickBooks Online. This allows him to keep track of his cash flow and manage his finances without much paperwork. To make things much more convenient, he connected his project management software with his bookkeeping tool.
With these two powerful strategies, J. Lane Construction stands at the forefront of relationship building. These smoothly run operations allow Jesse and his team to focus on clients, and their needs, enabling them to nurture relationships and increase the degree of client satisfaction. The employees can spend time designing strategies to offer clients the best value and services.
The fact that the project management processes are flawlessly connected with the bookkeeping app allows Jesse to maintain a positive cash flow, send payments to the vendors, and process payroll in a timely manner. As compared to most of the GC firms, J. Lane Construction pays the subcontractors fast, in the shortest possible time frame. There are no unnecessary delays in payment which encourages vendors and subcontractors to keep working with the company, saving J. Lane Construction from the hassle of finding new vendors for every project.
Jesse Lane, who has taken his company to the $15,000,000 mark and is planning to take his business up to $100,000,000, was someone that did not start out as someone who would be so successful. He is just 31 years old and has proved to the world that he indeed carries a spark that will change the GC industry for good. For someone who got repeatedly kicked out of school for his unwillingness to learn the dated curriculum, Jesse has come a long way. Jesse had a knack for innovating and bringing change. This is exactly what he is doing by changing the dynamics of the construction industry and creating a culture of kindness by always putting people over money, by paying his subcontractors fast, by developing a strong culture that listens and cares, and by giving his all to the clients of J. Lane Construction.