Small crews, smart moves: How going Lean benefits smaller contractors

There’s a perception in the construction industry that Lean methods are only meant for megaprojects and ENR 400 contractors. That is, going Lean is a resource-intensive effort requiring dedicated staff, expensive software and massive changes only worth doing if you’re working with big budgets on big projects. There’s a notion that the large companies are so far along in their journey that, if you’re a smaller contractor, there’s no point in putting in any effort to catch up.

But that couldn’t be further from the truth.

While the process of transforming operations to become Lean is something that requires effort for businesses of all sizes, smaller companies are usually capable of implementing the changes needed. And often, they’ll see the benefits much faster than those experienced by their larger counterparts.

So, why should small and midsize contractors consider applying Lean methods to their businesses? There are three main reasons.

Benefits of going Lean

1. Better worker performance — Embracing Lean construction practices empowers people and strengthens organizational culture by fostering respect, collaboration and continuous improvement, leading to better performance and long-term success. Teams grow stronger through:

• Worker engagement — Lean encourages input from those closest to the work, giving frontline tradespeople and site workers a voice in decision-making and problem-solving.
• Trust and collaboration building — Transparent communication and shared goals lead to mutual respect among team members, subcontractors and clients.
• Continuous learning — Workers are supported in developing new skills and improving processes, which boosts morale and retention.

2. More manageable workload — Utilizing Lean methods like the Last Planner System® and takt planning helps teams get their work sorted into short, manageable increments. More predictable workflows mean:

• Less downtime — Everyone shows up prepared, the project scope is clear and materials are where they need to be.
• Optimal staffing levels — A steady stream of work puts less stress on people, avoiding furloughing during slow times and excessive overtime during peak seasons.
• Better resource allocation — Companies avoid paying for equipment and workers to sit idle because of scheduling bottlenecks.

3. Better cashflow and profitability — For small contractors, even minor delays and rework can have a big impact on the bottom line. Lean methods help with:

• Waste reduction — Less rework, fewer idle hours and better material usage all contribute to freeing up budget to invest back into your business.
• Improved scheduling — Being able to reliably book projects farther into the future opens up the potential for more revenue. Fewer delays mean fewer billing disputes.
• Repeat customers — Reliable delivery creates satisfied clients. Satisfied clients usually return and will refer you more business. This is a much cheaper way to grow than continually having to hunt for new contracts.

Common objections

Even if you’re excited about the potential of Lean construction, it’s natural to have some hesitations. The good news? Most of the common roadblocks are easier to navigate than you might think. Here’s how to tackle them head-on.

“It sounds too complicated for a small team.”

Lean is as complex as you make it. Start small with simple practices like daily huddles or visual planning boards. As the comfort level increases, consider more advanced methods.

“We’re just too busy to change how we currently work.”

Implementing Lean is like sharpening your tools before you start cutting. It might take a few extra minutes, but it makes the job faster and cleaner. Even small changes in how you plan and communicate can lead to big savings in time, money and stress.

“We don’t have Lean experts on staff.”

You don’t need a full-time Lean manager to start taking advantage of these methods. Research them using free online resources (the Lean Construction Blog is a great place to start), join a Lean Community of Practice to learn from industry peers or engage the services of a Lean consultant or coach on a fractional basis.

“Our crew just won’t buy into this.”

Lean is all about making life better on the jobsite — which starts with listening to your crew. When you can show your team that their ideas are valued and contribute to real improvements, they’ll more readily buy into the process. And if the term Lean makes your team wary, consider giving your initiative a name that fits the vibe of your crew. Something like Operation Get Things Done just might do the trick!

“We don’t have the budget.”

Some of the most powerful Lean practices — like defining responsibilities and respecting your team — are completely free. And the ones that do cost money? They’re not expenses — they’re investments. With better performance, fewer mistakes and more repeat business, they pay for themselves many times over.

Closing thoughts

Going Lean doesn’t require a massive overhaul or a huge budget. It starts with small, intentional steps that lead to big results — less waste, better cash flow and happier crews. For small and midsize contractors, Lean isn’t just possible — it’s practical. And in a competitive market, it might just be your edge.

Going digital isn’t just for big contractors! Hear from Extreme Concrete, a concrete subcontractor in rural Alberta, on how Nialli™ Visual Planner helped them transform their operations.