Growth

Entering a new market as a contractor

By Scavi Company · · 3 min read
Entering a new market as a contractor

Expansion works when contractors learn the market before betting on it.

Research

Demand, competition and pricing.

Licensing

State and local requirements.

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Local subs

Reliable partners.

Suppliers

Accounts and lead times.

Relationships

Owners, architects and inspectors.

First project

Small and well managed.

Pricing

Local labor costs.

Where to start

Visit the market, meet five subcontractors and two suppliers before bidding the first job.

An example

A contractor followed a repeat client into a new city. The first project was small, which helped build a local sub bench before bigger work.

What to track

Track project margins in the new market, subcontractor performance and bid win rate.

Questions to ask

Who will lead the new office? Which clients can we follow? Do we understand local labor costs?

Common mistakes

Bidding big work before knowing local subs, underestimating travel and supervision costs and assuming that what worked at home will work the same way in the new market.

Run tighter jobs and win the right ones.

We help construction companies build the systems, online presence and client relationships that bring better projects.

Frequently asked questions

How should a contractor enter a new market?

By researching demand and competitors, getting licensed, building local subcontractor and supplier relationships, and starting with a manageable first project.