How High-Performing Contractors Drive Predictable Profits
In the construction industry, project success is often won or lost during the execution phase. While a solid estimate sets the stage for potential margin, the actual financial performance of a project depends entirely on how that opportunity is managed once work begins.
A new report from FMI, “2026 Project Management Study Part 2: What High Performers Do Differently During Execution,” reveals that the most successful firms are those that combat “execution chaos” through rigorous discipline and consistent processes.
The Reality of Execution Chaos
“Execution chaos” is defined as the inconsistent processes, reactive firefighting, and uneven leadership rhythms that hamstring both productivity and profitability. According to FMI’s research, which surveyed 243 executives and 84 project managers, there is a notable disconnect between leadership and staff regarding what causes this chaos:
- Executives view schedule/logistics (74%), staffing/labor (43%) and change-order management (41%) as the top risks to profit goals.
- Project managers are more concerned with inaccurate or incomplete estimating (61%) and trade contractor issues (34%).
Despite these differing perspectives, the data shows that project failure rarely stems from a lack of skill; instead, teams struggle to maintain discipline under the intense pressure of execution.
Three Non-Negotiables for High Performance
High-performing contractors distinguish themselves by adhering to three core pillars of execution discipline:
- A Structured Operational Playbook. While 90% of firms claim to have a defined “company way,” only 24% actually use these guidelines consistently. High performers treat their playbooks as non-negotiable guides that turn potential chaos into predictable outcomes.
- Disciplined Change-Order Management. Change orders are described as the “litmus test” for a firm’s operational health. The report found that contractors with highly consistent change order processes meet or exceed their schedules 80% of the time, compared to just 65% for their less-disciplined peers. For specialty contractors, this discipline leads to 87% profit reliability.
- Prudent Financial Management and Forecasting. Accurate cost-to-complete forecasting is essential for hitting profit targets. The study found that firms with the highest level of forecasting rigor hit their budgeted profit objectives 92% of the time.
Moving Forward
The report emphasizes that small misses in execution, if left uncorrected, compound into cascading failures that erode both credibility and profit. To avoid these “expensive misses,” leadership must ask whether they are investing enough in execution discipline up front or simply paying for avoidable rework later in the form of margin erosion.
By focusing on monitoring metrics, tight change-order control and reliable forecasting, contractors can transition from reactive management to a culture of predictable, high-performance execution.
The E-Verify Workforce Integrity Act: What Ohio Contractors Need to Know
Starting March 19, 2026, Ohio’s construction landscape undergoes a significant shift with the implementation of the E-Verify Workforce Integrity Act. For nonresidential builders, what was once a voluntary federal tool is now a mandatory state requirement.
Here is a breakdown of what you need to know to stay compliant and protect your business.
The Core Mandate
The new law requires all nonresidential construction contractors, subcontractors and labor brokers to use the federal E-Verify system. This system cross-references information from a worker’s Form I-9 against Department of Homeland Security (DHS) and Social Security Administration (SSA) records to confirm they are authorized to work in the United States. Who is covered?
- Commercial Builders: Projects involving office buildings, retail and industrial sites.
- Infrastructure Contractors: Work on highways, bridges, utilities and public infrastructure.
- Public Works: All contractors on state agency or political subdivision projects.
- Exclusions: The law does not apply to residential-only builders (single-family homes, apartment complexes) or agricultural structures.
Key Deadlines and Compliance Steps
Compliance isn’t just about a one-time check; it’s about integrating E-Verify into your permanent onboarding workflow.
- Registration: If not already enrolled, you must register your business at e-verify.gov .
- Verification Timeline: You must create an E-Verify case for every new hire within three business days of their start date.
- Recordkeeping: You are required to retain E-Verify records for three years after the hire date or one year after termination—whichever is longer.
- Final Nonconfirmations: If the system issues a “Final Nonconfirmation,” you must terminate the employee immediately. Continued employment is a direct violation of the Act.
Elevating Your Standards for Ladder Safety
Ladders are so ubiquitous on the job site that they often blend into the background. They are the ultimate “hidden in plain sight” tool—and because of that familiarity, it is easy to become complacent. But as any veteran tradesperson knows, gravity doesn’t take days off.
March marked a milestone in workplace safety: the 10th anniversary of National Ladder Safety Month. Spearheaded by the American Ladder Institute (ALI), this month-long initiative serves as a vital reminder that “common sense” isn’t always common practice.
Training for a Ladder? Really?
It’s a common refrain in the breakroom, but the ALI’s answer is a resounding yes. Proper ladder usage isn’t just about climbing; it’s about the physics of stability, the nuances of equipment inspection, and the discipline of the “Three Point Control” rule.
To make this transition easier for crews and safety managers alike, ALI provides a comprehensive, completely free online training portal at laddersafetytraining.org . The site offers an organized curriculum, video libraries and resources tailored to every type of equipment, including:
- Stepladders and extension ladders,
- Telescoping and articulated models and
- Mobile ladders for industrial applications.
OCP Contractors Form Heartfelt Bond with Young Patient
In a touching display of community spirit, the construction crew from OCP Contractors—a proud AWCI member company—has turned a standard jobsite into a source of daily inspiration for a four-year-old girl awaiting a heart transplant.
Working on the new Neurological Institute at the Cleveland Clinic, carpenter Devan Nail and his teammates noticed a flickering light from the window of the children’s hospital across the street. That small signal sparked a life-changing connection with Brinley Wyczalek, who has been hospitalized since October due to heart failure.
A Signal of Support
What began with a simple “Get Well Soon” sign in a construction window has blossomed into a daily ritual of hope:
Daily Greetings: Every day at 3:05 pm, the OCP crew gathers to wave and signal heart shapes with their hands to Brinley’s room.
Messages of Strength: The team frequently tapes up new signs, including one that reads: “Not All Superheroes Wear Capes, Some Wear Pigtails and Smiles.”
Tangible Kindness: Beyond waves, the workers delivered a gift basket containing a teddy bear, pajamas and—most significantly—a hard hat signed by every member of the crew.
Financial and Emotional Aid: The workers contributed to the family’s GoFundMe and provided an LED heart light for Brinley’s window. When the light is on, the crew knows she is doing okay.
The Impact on Healing
Brinley’s medical team emphasizes that this bond is more than just a sweet gesture; it is a vital part of her clinical care. Dr. Shahnawaz Amdani, her pediatric cardiologist, noted that a patient’s mental health significantly impacts the outcome of major operations like a heart transplant.
For Brinley—who is currently tethered to a Berlin Heart device—these interactions break the monotony of hospital life and provide the “nurturing of the soul” necessary to keep fighting.
While Brinley continues to wait for a donor, she knows she has a dedicated “work crew” across the street rooting for her every single day.
Construction Job Openings Rebound
The construction industry is showing renewed momentum as we head into 2026. After a sluggish autumn, new federal data reveals a significant bounce-back in job openings, though industry experts warn that “cautious hiring” remains the theme for the year.
If you are a contractor or project owner, here is a breakdown of the latest labor trends and how they impact your bottom line.
Construction Jobs on the Rise
According to the latest Bureau of Labor Statistics (BLS) data, the year closed with a surge in demand for skilled trades. Key highlights from December 2025 include:
292,000 Open Positions: Employers were actively recruiting for nearly 300,000 roles—an increase of 87,000 compared to the previous year.
3.4% Job Opening Rate: While demand is high, about 3.4% of all construction positions remain unfilled.
Falling Unemployment: The industry-wide unemployment rate dipped to 5%, signaling a tightening labor market.
Economists See Mixed Signals
Despite the uptick in openings, the hiring environment remains complex. Associated Builders and Contractors (ABC) Chief Economist Anirban Basu noted that while the labor market is stabilizing, long-term demand is still trailing pre-pandemic patterns.
The “Caution” Factor
While more jobs are being posted, actual hiring has been slower than in previous decades. Experts attribute this to a “subdued” demand caused by:
- Economic Uncertainty: High interest rates and uneven project pipelines.
- Rising Costs: Spikes in insurance and building material prices.
- Labor Shortages: Stricter immigration enforcement and a lack of specialized training.
Looking Ahead
The industry is far from saturated. ABC estimates that the construction sector will need 350,000 net new workers in 2026 to keep up with projected infrastructure and manufacturing projects.
The gap between available labor and staffing needs is slowly easing, but the “war for talent” is far from over.
Three Strategies for Contractors to Win in 2026
With nearly 300,000 openings currently active, how can your firm stay competitive? Industry leaders are moving beyond traditional recruiting:
- Expand Apprenticeships: Investing in “grow-your-own” talent programs to bridge the skill gap.
- Offer Flexibility: Experimenting with flexible schedules to attract a more diverse workforce.
- Focus on Retention: Raising wages and improving site culture to keep the workers you already have.
The Bottom Line
December’s rebound offers a reason for optimism. While the industry faces headwinds from tariffs and supply chain disruptions, the steady rise in job openings suggests that the worst of the construction slowdown may be behind us.
