Tier 1, Tier 2, Tier 3, Tier who?
Sure, knowing the number of staff and annual turnover is useful information when looking at future employers, but that means very little to a student, as it doesn’t provide the insight as to what actually working at a company in each tier can look like.
Crash course; companies are differentiated into their tiers by the value of works they can undertake. eg. your Tier 1 builder’s (Probuild, Multiplex) have the capacity to deliver a $500 million project, for example, and your CPB, Lend Lease and Laing O’Rourke’s of the world delivering on billions of dollars of work. Your Tier 2 builders can undertake work anywhere from a few hundred thousand dollar fit-out, to a $100M project. Within tier 2 there are also tiers.. As if it wasn’t confusing enough. Your Tier 3 and under are typically in the residential sector, or only under-taking small fit-out or refurb projects. Number of employees is also factored in. I'm not here to give you information you can google though.
Standing at the outset of the industry, it is commonplace to get swept up to go and work for the big names, the ones with the cranes in the CBD skyline. This suits some people, but definitely not others. I certainly had no desire when I was starting out to be channeled into a 2-year graduate programme, nor did I perceive my personality at the time suitable to working in a very large organisation.
So what are the key things you students need to consider when weighing up who you’d like to work for, in terms of company size, when starting out your career in construction?
In no particular order;
Project size
Larger organizations have projects with a larger value. What this means, is more people on the project delivery team, which is required because of the sheer size of the workload. This can result in members of the project team being ‘pigeon-holed’ – meaning you only get exposure to certain aspects of project delivery at a time, and you don’t have full exposure or visibility to all aspects on a project. For example, you may be doing defects for 6 months, or may be a project coordinator for one trade package (façade, concrete, etc). On the contrary, when you go down the tiers, you have more exposure and are more involved in many more aspects of project delivery, because the size of the team has decreased. A $100M project demands more resources than a $10M. You can think of this as either being a big part of a small thing, or a small part of a big thing.
Project Duration
Larger projects have longer durations, which means you can be on one project for years. This has its benefits, as you get a full appreciation for a build and can really get to know the details. For example, you could be on a CBD tower for 5 years if you’re there from start to finish. The other end of the spectrum is fit-out. Fit-out projects are typically short and sharp – I’ve done a $4M fit-out in 15 weeks for example. If you want more diversity and turnover between projects within an organization, look at the size and duration.
Project type
If you’re into bespoke type unique projects, apartments aren’t probably going to be your thing. What happens on level 5 is probably the same that’s happening on level 9 in an apartment building. Bespoke projects are one-of-kind, like civic buildings, healthcare, educational, etc that can have unique structures and spaces. If you’re into large, big things, maybe industrial type builds is your thing. In it for the glory– maybe a CBD tower if you’re fascinated by cranes and super-structures with incredible finishes and incredible complexity. Want even more complexity? Hospitals and pharmaceuticals! Project typology is quite personal and what interests and thrills you. Maybe it's repetition, maybe it's diversity.
You choose the company - don't let the company choose you. Elinor Moshe
〰️
You choose the company - don't let the company choose you. Elinor Moshe 〰️
There are certainly other considerations, such as company culture, growth opportunities, remuneration. In next week’s post, I will provide insight into the considerations students and graduates should make when vetting companies in industry which is relevant regardless of the tier a company is in.
The consideration with the above to students; think about the type of projects you will want to work on/want exposure to, and then find the company that suits. If you are not too sure, you can approach a company that does a variety of projects to help familiarize yourself with different types. Based on my experience, I don’t recommend going to a company and letting them decide on your career path. Your path is your own for the choosing and making.
I'd love for you to share this with your networks on LinkedIn so I can reach as many students and graduates as possible! If you have any questions, get in touch with me via the contact page.
