Staying Ahead: Four Misconceptions in the Contracting Business

Editorial Staff     June 11, 2020

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Staying Ahead: Four Misconceptions in the Contracting Business

People hire general contractors for their expertise in home building, remodeling, and so on. But in the job market, it can be difficult to obtain leads in a business filled with industry veterans and tenacious competition. It is easy to believe that the best way to get ahead is to work for connections and minimize spending. The problem, however, lies with having misconceptions that can jeopardize your opportunity to grow. 

In this business, expanding your horizon is crucial. You need to be open to ideas that can help you in your career growth. Don’t let these four misconceptions cloud your judgment. 


1.  A PCAB Contractor’s License is a waste of money.

Contractors price their services based on these four factors: 

  • How much they value themselves

  • How much the contracting service are valued in the local market

  • How well-established their brand is

  • If they are licensed by PCAB

The fourth one is often the determiner of whether or not a contractor will undervalue themselves for the sake of getting commissioned. 

The disadvantage of hiring an unlicensed contractor is that it is a danger to both the client and the worker from a contractual perspective. With licensed contractors, you can expect better professionalism. The extra money spent on them would amount to less of what a client may have to spend on repair jobs caused by careless contractors.


2. Contracts aren’t necessary for small jobs.

No matter how small or inconsequential the job is, if someone is getting paid for official work, then a contract should exist. This would limit liabilities and protect both the contractor and the client from an agreement breach.


3. Limited, free publicity is enough.

Getting work depends on local demand and word of mouth. One reason why some firms fail in getting leads is that they limit themselves too much on garnering publicity. Some do not even believe in new-age advertising.

Contractors should consider every available opportunity to get their name out. While there are valid reasons for some to forego the marketing options, such as having inadequate funds or dire local events, they should avoid staying complacent if they only have one or two lead sources. They should not also rely solely on basic social media marketing (such as having a social media page and sending out DMs to prospective clients), as the best way to get ahead of the competition is to have your brand in various channels to standout in the competition

4. There is no need for brand promotions.

In relation to the above, maintaining a profile is vital for contractors looking to grow their company’s image. One of the most popular ways of doing so is by creating a business website. It helps in making your firm look more professional, plus it provides a bit of publicity since they’re more likely to show up on online search engines than social media profiles. 

If you are looking to up the ante, you can hire a marketing firm. It won’t break your bank account, but it won’t be as cheap as buying ad space in the newspaper. There are budget-friendly agencies out there who can give you the publicity you need while keeping tabs on leads and probable clients. Alternatively, you can also go for a cheaper option of hiring a consultant or partnering with a construction lead finder. 


The best way for anyone to stay in the business is to be responsible and to be resolute in the face of uncertainty. The contracting business is tough most specially at present, but it ultimately gets easier so long as you stay optimistic and opportunistic in the years to come. 

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