This company earns very respectable profit margins in the same range as many service and replacement shops. When one considers the dollar volume a mechanical contractor can churn, great profit margins can mean lots of cash.

Admittedly, I've not been too excited about construction type contracting just because the market is so crowded and the margins are so low. Now that I've seen it done right, I'm much more heartened at the prospects of this important branch of our profession.

So, what did I observe? What can be implemented by anyone who wants to do it? Here's my list in no particular order of importance ( although several items work hand in hand with other items.)

* Commit to top quality: It is not just a slogan, it is a commitment. For this company, quality means making sure their work is done right, even if no one sees it. Their reputation is such that inspectors don't necessarily have to inspect their workmanship because they know the company standards are higher than the code minimum.

Case in point: As I was doing a 'ride along' with a tech I had a chance to observe his workmanship. Although he was in the service department, he was trained in the construction side of the business. On one job, he discovered that he had missed a measurement on some 1/2" copper. That made a drop come down just ever so slightly crooked. This meant another trip up a ladder, cutting out a fitting and shorting a cut by about 1 inch to get it to look just right. Folks, this level of attention to detail was really refreshing to me, especially because this journeyman plumber was a young guy, one of the "gen-x" generation.
There is hope!

* Cooperation: Getting along with the GC and sub contractors means give and take. They've learned that being helpful and considerate where possible pays off in efficiency for everyone.

* Be quick to fire misfits. This is a great company to work for and the employees are very loyal but if someone doesn't fit, they are allowed to become an asset somewhere else. Beyond that, "firing misfits" means firing GCs who are difficult to work for, unorganized, combative or just plain cheapskates. They realize that working for the wrong GC can not only cost them profits, it can hurt their excellent reputation.

* Effective management: This company sets budgets for each phase of each job. They don't wait till the retainage check to find out if they made a profit, they track it step by step. They know when to allocate manpower and materials and their "on time" performance proves it. This efficiency not only helps them be more productive and more profitable, it enhances their value to the GC.