Service Agreement Ideas for Project Based Businesses

Question

This one has got me racking my mind. One thing they always talk about when you are building enterprise value in a business is having predictable revenues. I think for something like window washing, lawn care, poop scooping etc it'd be easy to have predictable revenues because it's pretty straightforward to have a re-occuring service agreement. But what about us GCs?

I originally thought I could get people with a membership for a percentage off jobs. This seemed like a good idea till the first two people to sign up only did so because they had large $40k plus jobs so it was a no brainer (it paid for itself 2x over). If I tried to make the percentage off smaller, it wouldn't be enticing enough to get people interested.

Let's brainstorm here guys - what can a general contractor do as a monthly or quarterly service to get in to the service agreement game?

roselvaggio · Answer

I don’t think recurring revenue has to come from the same large project repeating, it can come from becoming the long-term maintenance partner after the project is complete.

Instead of selling a $40k remodel and hoping they call again in 10 years, what if the project naturally transitioned into an ongoing relationship?

A few ideas:

Annual home maintenance inspections with a written punch list.
Quarterly handyman memberships (drywall touch-ups, caulking, door adjustments, seasonal repairs, etc.).
Priority scheduling and preferred labor rates for members instead of a straight discount.
Exterior maintenance plans (deck inspections, fence repairs, pressure washing coordination, gutter cleaning through partners) ** I have a friend who’s a paint contractor and he sells “paint-enance programs”
“Home Stewardship” memberships where clients have one trusted company to call before little issues become expensive ones.

The goal isn’t necessarily recurring projects, it’s recurring trust. Once you’ve renovated someone’s home, you’re already the contractor they know. I’d rather monetize that relationship than spend thousands acquiring them again years later.

matt_kaleafirm · Answer

I really like the community coach's idea of becoming the long-term maintenance partner instead of viewing every remodel as a one-time transaction.

One thing I'd add is that the membership itself doesn't necessarily have to be the product. It needs to solve an ongoing problem for the homeowner.

I've been working on designing membership programs in another industry, and one of the biggest lessons has been that people don't join because they want a membership. They join because it gives them convenience, peace of mind, priority treatment, and helps them avoid larger, more expensive problems down the road. Unfortunately, there are always going to be client who utilize this to their advantage. If the premise is right the pros outweigh the cons in the long-run.

For a GC, I'd lean into being the homeowner's long-term advisor rather than just the contractor who completed the remodel. Annual home assessments, seasonal maintenance planning, a digital home maintenance record, priority scheduling, preferred pricing, and proactive recommendations all reinforce the value of staying connected.

From a business perspective, I think the goal is bigger than recurring revenue. It's increasing customer lifetime value, reducing customer acquisition costs, and creating predictable touchpoints that naturally lead to future projects.

One question I'd have is, if you offered a membership, what ongoing problem would your ideal client be paying you to solve every month or quarter?

As always, I'm happy to dive deeper or bounce ideas around if anyone wants professional feedback on their specific business or membership strategy.

Matt
Kalea Consulting

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Service Agreement Ideas for Project Based Businesses

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