Why Small Contractors Are Scaling Faster Than Large GCs

In this episode of Hard Hat Chat, Justin Smith, CEO of Contractor+, sits down with Gerritt Bake, CEO of Build PRO, to unpack a reality that’s becoming impossible to ignore across the construction industry — small contractors are scaling faster, staying more profitable, and adapting quicker than many large general contractors.

Justin and Gerritt break down why agility, specialization, and smart systems give small construction businesses a serious advantage. From faster decision-making and lower overhead to stronger client relationships and better use of technology, this conversation explains how size is no longer the deciding factor for success.

They explore real-world contractor behavior, common mistakes large organizations make as they grow, and why smaller teams can experiment, pivot, and win without risking massive overhead. Using fictional but realistic case studies, the episode shows how contractors can move from solo operations to multi-crew businesses without burning out or losing margins.

The conversation also dives into profitability, pricing confidence, crew culture, leadership development, and why communication and customer experience matter more than logos and office buildings. Justin and Gerritt share practical checklists, KPIs to track, and a clear growth roadmap contractors can use at every stage of their business.

This episode is a must-listen for contractors who want to scale smart, protect their margins, and build a business that works for them — not the other way around.

🔧 In this episode, you’ll learn how to:

• Scale a construction business without massive overhead
• Use systems and technology to grow faster with smaller teams
• Improve profitability while reducing owner burnout
• Build strong crew culture and leadership early
• Specialize to win more jobs and command better pricing
• Track the right metrics to support sustainable growth
• Avoid common scaling mistakes that slow contractors down

Whether you’re a one-man shop, running a few crews, or planning your next stage of growth, this episode delivers real-world insights that prove bigger isn’t always better — smarter is.

Creators and Guests

Host

Gerritt Bake

CEO at American Contractor Network

Host

Justin Smith

CEO at Contractor+

What is Hard Hat Chat: No-BS Construction Discussion with Justin & Gerritt?

Hard Hat Chat is your backstage pass to the gritty and sometimes mind-blowing world of construction. Hosted by Justin Smith, CEO at Contractor Plus, and Gerritt Bake, CEO at American Contractor Network, this show is all about keeping it real—no corporate fluff, no sugarcoating. Tune in each week for straight talk on growing a contracting business, avoiding industry pitfalls, and sharing the occasional “holy sh*t, did that really happen?” job site story. Whether you’re a seasoned pro or just getting your boots dirty, you’ll pick up hard-earned insights and a few good laughs along the way. Join us, throw on your hard hat, and let’s build something awesome.

Justin: Welcome back to Hard Hat Chat, the podcast where boots on the ground meet brains in the office. I’m Justin Smith, CEO of Contractor+, and with me is the always-legendary, the man who can hang drywall straighter than most people can hang a picture frame… Gerritt Bake, CEO of Build PRO.

Gerritt: Wow. Keep going. I’m blushing under the beard.

Justin: Today’s episode is titled: Why Small Contractors Are Scaling Faster Than Large GCs. Yes, we’re putting the spotlight on the underdogs who are quietly taking over the market.

Gerritt: Those big guys better get used to us waving in the rearview as we zip by.

Justin: Ha! Let’s get right into it. First big reason: agility. Smaller contractors don’t wait around for permission. They see an opportunity and take the swing.

Gerritt: Meanwhile a large GC has to create a meeting to discuss creating another meeting to discuss whether they should approve it.

Justin: It’s like watching a glacier try to roller-skate.

Gerritt: Hah, exactly. Small contractors are fast and flexible. They can jump into fast-growing niches like EV chargers and heat pump installs the moment customers ask.

Justin: Construction Dive talks about how small firms adopt innovations quickly. They don’t have to upgrade a thousand employees. If the owner says go — it goes.

Gerritt: They’re like ninjas. Construction ninjas. But with better footwear.

Justin: Let’s talk tech. Smaller businesses are scaling because technology is leveling the field. Software that used to cost the price of a pickup truck can now be paid off monthly.

Gerritt: And tech actually gets used. A small contractor buys something because it solves today’s problem. Not just to say they’re innovative on a corporate slide deck.

Justin: Right. A GC buys software, makes a beautiful launch announcement, then nobody logs in again after week two.

Gerritt: If your software sees more dust than your shop vac, you’ve got a problem.

Justin: What I love is that software makes admin disappear. Let tech do the paperwork. Let humans build things.

Gerritt: And let’s be honest — paperwork is the worst part of construction. Even hammers hate it.

Justin: This brings us to the relationship advantage. People trust people, not organizations. And small contractors make relationships personal.

Gerritt: When the owner shows up on the jobsite, the homeowner thinks, Someone who actually cares is here.

Justin: There’s no let me check with my department lead who checks with the regional project liaison.

Gerritt: Also known as: We have no idea what’s going on but we’re working hard to look professional.

Justin: Small teams eliminate communication gaps. And when clients feel seen and heard, referrals explode.

Gerritt: Referrals are like compound interest. Once they start rolling, the numbers grow unreal fast.

Justin: Money time. Profitability. Small contractors are outpacing some of the biggest names in percentage returns.

Gerritt: I’ve seen small remodeling companies at 18 to 25 percent net profit. Try finding that in the ENR Top 400 results.

Justin: Large GCs are weighed down by overhead. Offices in expensive downtown towers. Departments for everything. They burn cash before a hammer even swings.

Gerritt: A small contractor could use that same cash to add another truck.

Justin: Or hire someone to do the bookkeeping so they don’t have a mental breakdown during tax season.

Gerritt: Yeah, who knew math could be a safety hazard.

Justin: Now let’s bring in a story. A fictional but completely realistic case.

Gerritt: I love story time. Everybody gather around the job trailer.

Justin: Meet Rachel from Rapid Reno Co. Out of Ohio. Three years ago she was running everything solo. Answering phones. Doing quotes. Buying materials. Hanging drywall. Installing tile. Sending invoices from the Home Depot parking lot.

Gerritt: A true superhero. Without the cape, because capes near table saws? OSHA would not approve.

Justin: She decides she wants sanity and scale. She adopts scheduling software, automated invoicing, digital proposals. Stops wasting 10 hours a week chasing paperwork.

Gerritt: She starts turning around bids in a day instead of four. Clients love it.

Justin: Business grows. She hires an apprentice. Then a project coordinator. Then a second crew. Today she’s managing a 2.5 million revenue operation and working 45 hours instead of 90.

Gerritt: And margins stayed strong because systems work harder than payroll.

Justin: Exactly. She scaled smart, not stressed. Let’s share a practical checklist for anyone listening thinking how do I scale like Rachel.

Gerritt: Here we go.

Justin: Choose a niche and become the best at it. Digitize estimates, scheduling, and invoicing. Systemize repetitive steps like templates and automations. Track actual versus estimated cost on every job. Build a dependable sub network. Ask for reviews as soon as jobs finish. Follow up with customers throughout the year.

Gerritt: And my personal favorite: don’t ghost the client. Communication is not optional.

Justin: True. Contractors sometimes disappear like magicians. Except the customer doesn’t clap when they vanish.

Justin: Another part of scaling is watching your performance numbers. Let’s give some key KPIs.

Gerritt: KPI sounds super corporate. But it means: is the business actually getting better?

Justin: Exactly. Numbers don’t lie.

Justin: Bid win rate going up. Profit per crew per week increasing. Jobs finishing sooner. Reviews improving. Fewer callbacks for rework.

Gerritt: If you think your business is growing but your numbers disagree — your numbers are right.

Justin: Data is the mirror. Sometimes it tells you what you don’t want to hear.

Gerritt: Like when I thought I still fit into my 2015 jeans.

Justin: We’ve all been there.

Justin: But let’s not pretend scaling is easy. What are the growing pains?

Gerritt: Hiring reliable people. Cash flow dips between big payouts. Communication breakdowns. The owner doing everything instead of delegating.

Justin: And don’t forget permitting delays because a signature was missing from a form that nobody told you existed.

Gerritt: If construction had a mascot, it would be a form. Just a guy dressed as a paper form.

Justin: That’s a horror movie.

Justin: Crew culture matters too. Growth doesn’t happen if your team resents the direction.

Gerritt: Some contractors think tough equals yelling. But real leadership is building people up.

Justin: Invest in training. Reward effort. Celebrate wins. Build leaders early.

Gerritt: A business grows in proportion to its people. If your team is leveling up, your company levels up automatically.

Justin: That’s quotable. I’ll put that on a mug.

Justin: Field crew empowerment is huge. Equip them with tools that eliminate friction.

Gerritt: Job notes, time tracking, materials lists, checklists, change orders — all right on their phones.

Justin: That way no one needs to call the boss every 12 minutes to ask where something is.

Gerritt: Unless it’s lunch plans. That’s important.

Justin: Customer experience is rocket fuel for growth.

Gerritt: Show up on time. Communicate proactively. Provide clean work. Send progress photos. Ask for feedback.

Justin: Homeowners compare contractors by how they’re treated, not just by the finished wall.

Gerritt: Better service beats bigger firm. Every time.

Justin: Before we wrap this part, pricing confidence matters.

Gerritt: Say it louder for the folks in the back.

Justin: Underpricing keeps contractors stuck. Profits fund growth.

Gerritt: If you can’t invest in tools or your team, you’re wearing yourself down.

Justin: Raise prices. Deliver quality. Communicate value.

Gerritt: And cheap-only customers can go haunt the bigger GCs.

Justin: Stay tuned. We’ll be right back after a short break.

Justin: If you’re a contractor looking to scale without adding chaos, check out Contractor+.

Justin: CRM, estimates, invoices, payments, plus integrations like QuickBooks Online, Zapier, Authorize.net, ABC Supply and more.

Justin: Welcome back to Hard Hat Chat. Let’s jump right back in.

Justin: Pricing right brings confidence. Confidence brings better clients. Better clients bring growth.

Gerritt: Not every client is your client.

Justin: Small contractors scale faster because they can experiment without risking millions.

Gerritt: They fail small, learn fast, and gain clarity quicker.

Justin: You don’t need a skyscraper office to scale. You need repeatable systems and reputation.

Gerritt: Evolution beats tradition. Innovation beats size.

Justin: Gerritt, this was a killer conversation. Thanks as always.

Gerritt: My pleasure. Any day hyping small contractors is a good day.

Justin: And to everyone listening — keep building, keep growing, keep pushing forward. This is Hard Hat Chat. I’m Justin Smith, signing off.