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It’s all about the plan. Rising labor costs, fluctuating trade policy and a rapidly approaching Q4 have many contractors rejiggering 2026 plans and considering strategies for 2027 and beyond. This week, we share the insights you need to inform near- and long-term decision-making alongside advice on the QC function.
But first, we can all relate to this.
QUICK HITS
» You did what? Construction Redditors confess some pretty crazy hacks.
» That’s deep. Explorers discover a well-preserved 7,000-year-old stone wall in the sea off France.
» Forget the big gulp. Scientists find that sipping, not chugging, is the best way to avoid dehydration at the jobsite.
» A doggone good idea. Meet Betzabe Salomon, the 14-year-old inventor of a climate-ready, smart dog house!
LABOR
Competition for workers creates labor cost pressure
The market for crew members remains robust. AGC data shows the industry added 22,000 jobs in July, bringing the year-to-date number to 82,000. The lion’s share of those hires was in non-residential building, which has grown 2.6% in the last 12 months. It’s not so rosy for the residential subsector, though, which shed 44,200 positions in the same period. “That last stat is nasty,” quips industry reporter Keith Gribbins. Competition for workers propelled average hourly wages up, hitting $39.24 in July—21.1% higher than the overall private-sector mark.
Why it matters: With wage growth expected to continue, contractors should increase labor cost figures for Q4 to ensure accurate estimating and financial planning. Another good reason? Failing to keep up with prevailing pay trends could prevent you from filling out crews and completing jobs on time and safely. (Construction Equipment)
FAMILY BUSINESS
Don’t lose control of your construction business
About 14% of construction businesses are family-owned and more than 20% of the nation’s 100 largest family firms are in construction and related sectors. Keeping your venture going under family control requires effective ongoing leadership. Yet BanyanGlobal Family Business Advisors Partner Judy Lin Walsh and Principal Alison Hiler Isaacson say most successors aren’t ready.
“The senior generation (along with their independent directors and advisors) spends enormous energy preparing future business leaders while spending far too little focused on another essential role—that of future owner,” they write. To maintain control and ensure sustainability, they advise educating younger family members on their “roles and rights as owners (not just as employees in the business) and setting clear owner goals and direction for the enterprise.”
Why it matters: You worked hard to form a successful firm. Don’t assume your family members know what it takes to lead on. In addition to growing their skills in building and business, teach them the unique aspects of being an owner so they can steward the company into the future. (Harvard Business Review)
STRATEGY
Now’s the time to build your 2027 strategy
If you’re thinking you don’t have enough time to plan for next year, think again. Sure, you’d ideally spend a few days on this endeavor, but this is clearly a some is better than none situation, according to business advisor Jill James. She created a step-by-step guide for full-day, half-day and even two-hour planning sessions, so even the most harried contractor can find the time.
First, set aside some time to gather your previous 12 months’ P&L or income statement by month, a balance sheet through your last financial close, a list of loans and lines of credit and a summary of your backlog and outstanding invoices. (Your business banker or CPA can help.) Then set aside time to craft your plan. “You probably won’t have every detail settled by the end of the day,” notes James, who works with self-funded founders and small business owners, “but you should know the direction you want to head, have the broad strokes of next year’s goals, and a clear list of the things you still need to figure out and talk to customers about.”
Why it matters: Investing in planning now gives you time to evaluate and execute before the year-end crunch—and gives you a crucial competitive edge. (The Jill James)
THE PUNCHLIST
THE BLUEPRINT
Independence is the key to effective QC
The person in charge of company QC should not be in the reporting chain to construction or project management.”
Quality is crucial to retaining customers, getting referrals and avoiding costly fines and rework. You need a dedicated employee who works independently to oversee quality systems, evaluation and reporting, according to Dee Davis, founder of Davis Consulting Management Group and host of the “Management Under Construction” podcast. “They should be completely separate reporting structure than construction, just like safety can't report to construction. It's for the very same reason: you want to eliminate the potential for a conflict of interest.” (Management Under Construction)
POLL
Is regulatory policy the main reason preventing the U.S. from constructing adequate housing supply?
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The Level is curated and written by Margot Lester and edited by Bianca Prieto
