In today’s competitive construction industry, it’s not enough for contractors to just keep busy — profitability is the name of the game. Smart contractors don’t just work hard, they work smart. Managing jobs efficiently, cutting unnecessary expenses, and protecting your business from costly risks can mean the difference between barely breaking even and building lasting wealth.
If you’re a contractor looking to increase your margins and improve cash flow, here’s your go-to list of the 10 best ways to be as profitable as possible — plus a bonus tip that could put thousands of dollars back in your pocket.
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🔧 1️⃣ Bid Strategically — Not Cheaply
One of the fastest ways to shrink profits is by underbidding jobs just to win them. Profitable contractors:
• Know their numbers down to the penny.
• Include realistic labor, materials, overhead, and profit margins.
• Walk away from projects that don’t meet profitability standards.
Smart Move: Use estimating software and historical job cost reports to refine bids and protect margins.
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🔧 2️⃣ Invest in Project Management Technology
Poor scheduling, miscommunication, and change order mistakes cost contractors thousands. Investing in project management apps like Procore, Buildertrend, or CoConstruct streamlines communication, tracks costs in real time, and prevents expensive mistakes.
Bonus: You’ll spend less time putting out fires and more time finding your next profitable job.
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🔧 3️⃣ Build Strong Supplier Relationships
Material costs can make or break a job. Contractors who cultivate relationships with suppliers often get:
• Better pricing
• Priority delivery
• Access to hard-to-get materials in emergencies
Consider locking in prices on bulk materials to shield yourself from market fluctuations.
🔧 4️⃣ Manage Labor More Efficiently
Labor is one of your biggest expenses — and the easiest to mismanage.
Profitable contractors:
• Hire reliable, skilled workers.
• Cross-train employees to perform multiple tasks.
• Use scheduling software to reduce downtime.
• Offer incentives for productivity and safety.
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🔧 5️⃣ Stay on Top of Change Orders
Change orders can be goldmines — or profit killers.
Protect yourself by:
• Requiring all changes to be in writing.
• Pricing them fairly and promptly.
• Sticking to clear contract language about handling changes.
If you’re doing extra work without extra pay, you’re donating profits.
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🔧 6️⃣ Monitor Job Costs Daily
Waiting until the end of a job to check costs is too late.
Track labor, material, and overhead expenses in real time so you can make immediate corrections. Job costing apps like Knowify or QuickBooks Contractor Edition can help identify problem areas before they destroy your margins.
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🔧 7️⃣ Reduce Overhead Expenses
Lean companies are profitable companies.
Look for savings in:
• Office rent
• Insurance costs (more on that later)
• Equipment rentals
• Marketing and advertising
Every dollar cut from overhead is a dollar added to your bottom line.
🔧 8️⃣ Focus on Niche Markets
Specializing in a niche allows contractors to charge premium rates and avoid competing solely on price. Whether it’s luxury kitchen remodels, medical facility build-outs, or custom concrete work, becoming the go-to expert means better clients and higher margins.
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🔧 9️⃣ Prioritize Safety
Job site accidents are not only dangerous — they’re expensive.
Smart contractors implement strict safety programs, regular toolbox talks, and pre-job safety meetings. A solid safety record keeps your workers’ compensation premiums low and prevents costly downtime from injuries or OSHA violations.
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🔧 🔟 Protect Your Business with the Right Insurance
Nothing kills profitability faster than an uninsured claim or lawsuit.
Profitable contractors partner with insurance experts to secure:
• Workers’ Compensation
• General Liability
• Umbrella/Excess Liability
• Commercial Auto
• Builders Risk
• Equipment Coverage
Not only does this protect against job-stopping claims, but it also improves client confidence and contract eligibility.
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🎁 🔧 Bonus Tip: Save Up to 30% with BGES Group’s Payroll, Workers’ Comp, and Group Health Program
Here’s where you can really turbocharge your profitability: BGES Group offers a payroll, workers’ compensation, and group health program that can save contractors up to 30% annually.
How it works:
• Payroll services tailored for contractors, ensuring proper tax filings, certified payroll reports, and workers’ comp audits go smoothly.
• Workers’ Compensation Pay-As-You-Go programs so you only pay for actual payroll, not estimated premiums. This improves cash flow and eliminates year-end surprises.
• Group Health Insurance programs negotiated for construction companies, providing excellent coverage options at significantly reduced rates.
Contractors leveraging this program often see five-figure annual savings — money they can reinvest into equipment, marketing, or profit distributions.
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🏢 Meet BGES Group — The Construction Insurance Specialists
For over 44 years, BGES Group has been the Tri-State area’s trusted advisor for contractor insurance programs. With a sharp focus on New York, New Jersey, and Connecticut construction businesses, they understand the unique challenges and risks of your trade.
✅ Why Contractors Choose BGES Group:
• 50+ Carrier Options: They shop your coverage with multiple carriers to get you the best rates.
• Construction Industry Focus: From general contractors to specialty trades, BGES knows the exposures and coverage contractors need.
• Claims Advocacy: If a claim occurs, BGES fights for fair settlements and helps control insurance costs.
• Specialized Programs: Including workers’ comp for tough industries, umbrella policies, and the 30% savings payroll/health plan.
They don’t just sell policies — they become part of your business strategy.
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📍 Serving the Entire Tri-State Construction Market
BGES Group proudly works with:
• General Contractors
• Roofing & Siding Contractors
• Demolition Companies
• Concrete & Masonry Firms
• Mechanical, Electrical, and Plumbing Contractors
…and all construction trades throughout New York, New Jersey, and Connecticut.
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📞 Contact BGES Group Today
Office: Larchmont, NY 10538
Phone: (914) 806-5853 (ask for Gary Wallach)
Email: bgesgroup@gmail.com
Website: http://www.bgesgroup.com
If you’re a contractor looking to improve profitability, cut insurance expenses, and protect your business, BGES Group is the partner you’ve been waiting for.
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📣 Final Thought
Profit isn’t about working harder — it’s about working smarter. By applying these 10 strategies and tapping into BGES Group’s exclusive payroll, workers’ comp, and group health program, contractors can dramatically improve their bottom line.
Your profits are built by the decisions you make today. Make this one count.