Background
A commercial electrical contractor decided to add structured cabling and electronic security to its service offering. The firm had been subcontracting this scope for years and was watching margin leave the business on projects where it held the electrical package and had the client relationship.
The Challenge
The firm’s instinct was to hire technicians first, since technicians perform the work. That sequence is close to the most common way a new low voltage division fails. Without an estimator who understands low voltage pricing, the firm would bid the work on electrical assumptions and win jobs at prices that could not be delivered. Without a project manager, submittals and closeout documentation would fall to electrical staff unfamiliar with the requirements. Leadership also had no way to judge the quality of technician candidates, having never employed one.
The Solution
Advastar recommended reversing the hiring order and made the case with reference to how comparable divisions had gone wrong elsewhere. A low voltage project manager and an estimator were recruited first, establishing the ability to bid and administer work the firm could actually deliver. Two working foremen followed, chosen for their ability to set field standards and train rather than purely for production speed. Only then were technicians added, and those were placed contract-to-hire so that headcount tracked confirmed backlog rather than optimism.
The Outcome
The division bid its first work three months after the estimator started and has operated at a positive margin from its second project. Four of the six contract-to-hire technicians have converted to permanent positions as backlog held. The firm has since stopped subcontracting cabling scope on projects where it holds the electrical package.