In most small and mid-size construction companies, the owner is the business developer. That works until the company grows and the owner is pulled into estimating, problem projects and payroll. Then the pipeline dries up, and six months later there is a gap in the backlog. Hiring someone whose job is to find and win work is often the step that separates companies that grow from those that stall.
In this article
Signs it is time to hire
- the backlog swings between too much work and not enough;
- most new work comes from the same three or four clients;
- the owner has not had time for client meetings in months;
- you are invited to bid but rarely get short-listed;
- you want to enter a new market (healthcare, multifamily, public work) and nobody owns it.
What the role does
- builds relationships with owners, developers, architects, engineers and brokers;
- finds projects early, before they hit the bid boards;
- qualifies opportunities so estimating only works on jobs you can win;
- organizes proposals, presentations and project interviews;
- keeps the CRM and pipeline updated so leadership can plan.
The business development manager does not replace estimating or operations. They feed them.
Keep reading — free
The rest of this article is worth the 20 seconds
Tell us where to send it and the full piece unlocks right here, along with everything else on this blog.
Rather just talk? Message us on WhatsApp.
Who to look for
The best hires usually know construction (former project managers, estimators or suppliers' sales reps) and have a network in your market. Someone with sales skills but no construction knowledge loses credibility in technical conversations. Ask candidates for specific examples of projects they found early and helped win.
Compensation
A common structure is a base salary plus an incentive tied to results: a share of gross profit on projects they brought in, or bonuses for hitting backlog goals. Avoid paying only on revenue, which rewards low-margin work. Make the rules clear in writing before day one.
The first 90 days
- Month 1: learn the company, past projects, ideal clients and current pipeline;
- Month 2: map 50 target owners and partners and start meetings;
- Month 3: present a pipeline of qualified opportunities and the plan for the year.
How to measure
Early on, measure activity and pipeline: meetings, new relationships, invitations to bid, proposals and short lists. After six to twelve months, measure signed work, gross profit from new clients and backlog stability.
Alternatives
If a full-time hire is too much right now, an outsourced business development partner can handle prospecting, meetings and the CRM while you keep closing. It lets you test the process before hiring.
An example
A commercial general contractor in Florida with about $30 million in annual revenue depended on two developers for most of its work. It hired a former project manager as business development manager with a base salary plus a share of gross profit. In 18 months, the company added seven new owner clients and reduced dependence on its top two clients from 70% to 40% of backlog.
Common mistakes
Hiring a salesperson with no construction knowledge, paying only on revenue, no CRM or targets, expecting contracts in the first 60 days, and letting the owner keep every relationship instead of introducing the new hire.
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 long until a business development manager pays for themselves?
In construction, sales cycles are long. Expect six to twelve months before signed work clearly covers the cost, depending on project type. That is why leading indicators (meetings, invitations to bid, proposals, short lists) matter in the first months, before contracts show up.