Sundt and Growth of Wealth

One of the most common and dangerous misconceptions we hear about ownership in a construction company is that it’s all about perks owners get.

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Perk (/pərk/) noun:  Abbreviation of perquisite - money, goods, or other benefit to which one is ENTITLED as an employee or as a SHAREHOLDER of a company.

Succession: Investing in a Construction Business. Book: Level Headed, Inside the Walls of One of the Greatest Turnaround Stories of the 21st Century by J. Doug Pruitt and Richard Condit.

  • What kind of vehicle can I get?
  • What kind of expenses can I get reimbursed?
  • What memberships can I get paid for?
  • What travel and entertainment can I get as benefits?
  • How much time can I take off?
  • How big will my office be?  

If these are the questions that come up, they are 100% the wrong level of questions.  

The biggest “perk” to being an owner of a construction company is the opportunity for your money get a 20-35% annual rate of return versus the 8% or so that the market provides.  

Owners who are focused on exploiting that single “perk,” viewing it more as a privilege, are the ones who will truly outperform in the long run.

Sundt is a great example of this alignment




Lean Principle - Value Add vs. Non Value Add
For specialty contractors the field workforce represents most of their competitive advantage as well as their biggest source of variability. Making improvements to field productivity requires deeply understanding what truly adds value to the customer.
Time-on-Tools and Minimum Required Installation
Labor productivity IS NOT the biggest problem with field productivity. Under similar conditions the variation in how fast two crafts people actually “turn wrenches” is about 2X but there are far bigger problems to tackle. Focus on these three areas.
Lean Principle - Observation (Gemba Walks and Learning to See)
One of the most important tools for improving productivity is going to the jobsite or work area and observing for an extended period of time with the intent to understand but not to immediately interact. Observation progresses through about 7 stages.