It can get pretty confusing when trying to figure out the distinctions between different tier builders. Construction’s construction, isn’t it?
Not exactly. There are some major differences you need to be aware of, especially if you’re junior or grad level. The type of environment you choose now is likely to have a huge impact on the direction of your career, for many years down the track.
So, let’s arm you with all the information to make sure you know what you’re getting yourself in to, and so you can make the right decision for you.
Tier 1 Builders
Tier 1 builders are the industry leaders, usually with international presence and a turnover of over $500 million to the multi-billions.
They work on the largest and most significant building and infrastructure projects, and even fund some of their projects as the developer. Examples include Lend Lease, Multiplex, John Holland, CPB Contractors, Probuild, Kane and Hutchinson Builders.
As their turnover suggests, the construction project values in this space are the highest, and so they work with bigger project delivery teams to manage the workload.
With the many aspects involved in large-scale projects, you might find yourself only involved in one trade package at a time, which can lead to being ‘pigeon-holed’ and limiting your learning. Not ideal if you want exposure to the entire build from structure, services to finishes.
Construction programs are also much longer, sometimes even several years, which is an issue if you need project variety but if you love modern architecture and iconic landmark superstructures – Tier 1 is for you!
Tier 2 Builders
Tier 2 builders have a turnover of $100 million or more, but under $500 million – they’re still big players and have a major role in the construction industry.
They typically focus on large-scale commercial projects and small to mid-sized infrastructure projects in the tens of millions of dollars. Examples include ADCO, Built, Icon, Schiavello, Hickory Group, FDC, Buildcorp, Renascent and Crema Constructions.
As you go down the tiers, there’s more of an opportunity to get involved in other parts of project delivery as the size of the teams are smaller. For example, you could get exposure on all trade packages within structures, services or finishes – rather than just one trade package for the whole project.
Tier 3 Builders
Tier 3 builders are those with a turnover of less than $100 million, which most of the building industry falls in to. These range from mid-tier companies that do commercial and apartment projects around $5-10 million, or smaller fit-out builders with projects under $1 million.
Examples include Building Engineering, Cobild, AG Construct, May Constructions, Kontract Interiors, McCormack, Newpol Construction and McCorkell Constructions – but these are just the tip of the iceberg.
The projects are much smaller scale so typically you’ll get 360 exposure to all areas of the projects. You’ll be a lot more hands on whether you’re doing contract admin, estimating or site coordination, often able to negotiate directly and be the first point of contact for trades – crucial skills needed to fast-track your career development.
Project Preferences
There are many other factors at play like your personal interests and which projects you want to work on. Along with different tiers, project type is a big consideration.
Love challenging, fast-paced projects with a quick turnaround? Fit-out and refurb could be for you. Or maybe you prefer working on beautiful living spaces and want to see how large structures are built. Go for apartments instead!
It’s natural to want to go with the big operators when you’re starting out, but in the past I’ve seen some juniors go in to grad programs, and the experience doesn’t turn out as they expected. Others love it and stay Tier 1 or 2 for their whole career.
Having so many options can be overwhelming so reach out if you need help with career mapping and figuring out which builder suits you best.
Phone: 0405 370 548
Email: carlie@bradleyrecruitment.com.au
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