bout a week after having my fourth child, I received several kind comments and gestures from people across our industry. But two in particular stuck out. The first involved a residential client and the second was from a commercial general contractor. The interactions made me ponder the pros and cons of residential construction versus commercial.
Honestly, I cringed going into it. Throughout my career, I’ve been warned many times not to go “fix” other concrete contractor’s mistakes because it only leads to trouble. The concrete contractor who placed the basement floor did a great job. However, like in most construction, something got missed and additional plumbing had to be run through the floor. So, a portion of the floor was removed and replaced.
But, the initial portion of staining one slab to match the others, I took on myself … at eight months pregnant. I sat on the cold basement floor finessing colors and watching paint dry (literally) until the pour-back resembled the same color as the rest of the floor. I don’t know who was more surprised and relieved — me or the owners — but we were all happy to problem-solve together.
That encounter that made me wonder if residential concrete work wasn’t as bad as I had believed all these years. With a great team in place, and reasonable/honest expectations set upfront, it can be very rewarding to help problem-solve with the end user.
Very soon after having our boy, she texted me to say she was just thinking about us and wanted to know how we were doing. Nothing about submittals or RFIs or anything project related — just a genuine person-to-person check-in.
It was such an important reminder of why I love our industry — we work with real people every day. We relate to them, and they relate to us. Even in commercial construction when the client may seem like a big unknown entity, it’s the day-to-day interactions and victories which make the work rewarding.
Upon starting my own company, I had to decide whether to focus on commercial construction or residential. My preference has always been commercial construction. I love the evolution of a commercial project — the beginning design ideas of architects, helping build upon those aspirations with the general contractor, working with the crew to help translate the desires into reality and then with a sense of accomplishment walking the final product with the owner.
The teamwork a commercial project takes to succeed requires fine tuning and attention of many moving parts, but the accomplishments produced by a well-run team always amazes me. However, my recent interaction with residential reminded me of the intimacy of that kind of work and the sense of accomplishment and pride that comes with helping homeowners achieve what they dreamed of in concrete.
Meanwhile, Willie Barber in Idaho responded, “Commercial. More money, full benefits and better equipment. The work is more challenging than houses and is always changing.”
I could relate well to Matt Murphy in Michigan who stated, “I’ve been on both sides … they both have pros and drawbacks … I personally prefer commercial … a little more precision involved, and the tolerances are incredibly tight!”
And Danny Rosa in California had a similar yet slightly different take on the balance of the two, “I’ll pour whatever I have to. That being said, it depends on the specific traits of the finisher. Each industry has its own pros and cons. Residential has a little more freedom as far as space and rules. Commercial is less picky on the quality but more volume. More wildcards to deal with as far as personalities in commercial as well. So, if I’m choosing: Residential all day long. I can use my creativity more and overall it really engages me.”
- Better payment terms.
- More intimate team.
- More profit if risks are mitigated properly.
- Personal connection with homeowner, builder and/or designer.
- Can help cash flow woes.
- You can usually determine all the players of the “team” before signing a contract or starting work.
- Creative canvas and freedoms.
- Usually a more flexible schedule.
- Managing realistic expectations.
- Less safety enforcement.
- Contracts tend to be looser and can be harder to “win” if conflict arises.
- Smaller contract sizes — takes a lot more projects to fill a pipeline.
- The person writing the check may not be an expert in construction.
- Continuously “reselling” your company’s capabilities.
- Realistic expectations are usually established and managed as a group of construction professionals (rather than a Pinterest page or DIY network).
- Larger contract sizes — stability for the crews.
- Safety enforcement and accountability.
- More detailed plans and specifications.
- Creative influence possibilities if established early on with the design team.
- Develop and grow relationships with people who can take you with them in their career.
- Typically, a more even playing field with competition and qualifications.
- Payment can lag.
- You’re at the mercy of a larger schedule with many other outside influencers/trades.
- Sometimes the exact team you’ll be working with is unknown until after you start the job.
- Price driven in a competitive bid situation.
- More legal implications.
- More complicated contracts.
- Mountains of paperwork.
- Union and/or prevailing wages when necessary.
- Insurance, bonding, retention, pre-qualifications.
Whether commercial or residential, you can still develop personal relationships and become the go-to expert in your field. Building a reputation based on expertise and respect benefits you in either market. I know many contractors who choose to do both to balance their company structure.
Whatever your preference, there is a strong case for either. Both require communication, quality, relationships and a personal approach when crafting decorative concrete.