Hiring for Growth in Commercial Construction: Why Your First Project Manager Matters

Starting or scaling a construction company is about more than landing jobs. The real challenge comes when you need to deliver multiple projects at once, maintain quality, and protect profit margins — all while building trust with your clients. For a commercial contractor focusing on tenant improvements and mid-sized projects, one of the most important decisions you’ll make is who to hire first. At Blackstone, our focus is on commercial building projects and tenant improvements in the 10,000–20,000 sq. ft. range. This type of work demands speed, precision, and exceptional coordination. Based on my own experience — both running a framing company for 10 years and now launching a new commercial contracting firm — I’ve learned that the right Project Manager (PM) is the single most critical first hire for long-term success.

Why a Project Manager Should Be Your First Hire

Tenant improvement projects can be deceptively complex. They may not carry the massive budgets of ground-up construction, but they are fast-paced and detail-heavy. Move-in deadlines are often non-negotiable, and multiple trades must be scheduled in tight coordination.Without a strong project manager:• Schedules slip. Missed milestones can quickly impact client move-in dates.• Margins erode. Poor tracking of change orders and subcontractor coordination can bleed profit.• Reputation suffers. Clients expect commercial TIs to be seamless — one messy job can cost you repeat business.A seasoned Project Manager protects against these risks. They own the schedule, the budget, and the communication. They keep subcontractors accountable, track documentation, and give clients confidence that their project is in good hands.

What Makes an Ideal Project Manager Candidate?

Not all PMs are created equal. For a growing contractor, you need someone who can wear multiple hats — not a “corporate PM” who only thrives with layers of admin support.Look for these traits:• Commercial TI experience — they’ve managed projects of similar scale and understand the pace.• Organizational skills — they live by logs, schedules, and checklists.• Tech comfort — familiarity with Procore, Buildertrend, or similar systems.• Financial literacy — they can track budgets, forecasts, and change orders.• Leadership and communication — respectful with subs, professional with clients, and accountable to the owner.Above all, you want someone who embraces the challenge of building with a smaller, growing contractor. They should see the opportunity to help shape systems and grow into a leadership role as your company scales.

Timing the Hire

The question many contractors wrestle with is: When do I actually bring on that first PM?Here’s a simple framework:• Early stage (first couple of projects): You can manage schedules and communication yourself, especially if the jobs are small.• Growth stage (2–3 concurrent projects or first larger TI): This is the tipping point. If you’re trying to run multiple jobs at once, a PM becomes essential to avoid burnout and mistakes.• Superintendent timing: A superintendent often comes second — when your projects are big enough to need daily on-site leadership. Early on, you can lean on subs or part-time supers until volume justifies the hire.For most tenant improvement contractors, the first PM hire comes when annual backlog reaches around $2–3 million.

Setting Up Your PM for Success

Hiring the right person is only half the battle. You also need to give them a clear framework to operate in. That’s where Standard Operating Procedures (SOPs) and a structured 90-day onboarding plan come in.At Built With Blackstone, here’s the roadmap we use for new Project Managers:

• First 30 Days:

• • Learn company processes and tools.

• • Shadow the owner in client and subcontractor meetings.

• • Take ownership of documentation (RFIs, submittals).

• • Deliver a draft schedule for review.

• Days 31–60:

• • Run one project independently.

• • Lead weekly subcontractor meetings.

• • Issue a complete change order package.

• • Propose one process improvement.

• Days 61–90:

• • Manage two projects with minimal oversight.

• • Deliver monthly budget forecasts and risk reports.

• • Lead client meetings independently.

• • Standardize a new SOP template for future jobs.

The Buyout Process: Protecting Margins from Day One

One of the PM’s most critical early responsibilities is project buyout.Buyout means turning your estimates into signed subcontractor agreements with clearly defined scopes, prices, and schedules. Done right, it prevents scope gaps, overlaps, and budget surprises. Done poorly, it drains profit and creates disputes.A simple Buyout Checklist keeps the process consistent:1. Review drawings and contract documents.2. Confirm subcontractor scopes and eliminate overlaps/gaps.3. Negotiate pricing, schedule, and clarifications.4. Issue subcontracts with all attachments (scope sheets, insurance, safety requirements).5. Hold kickoff meetings to align subs before mobilization.This repeatable system not only protects your bottom line but also sets a professional tone with subcontractors.

Final Thoughts

Hiring your first employee is always a milestone. For a commercial contractor focused on tenant improvements, that first hire should almost always be a Project Manager. They’re the linchpin that holds schedules, budgets, and relationships together — freeing you, the owner, to focus on growth.But hiring isn’t enough. Success comes from giving them a clear onboarding roadmap, documented SOPs, and the trust to operate with accountability. With the right PM in place, your company won’t just grow — it will grow with consistency, predictability, and a reputation that wins repeat business. At Blackstone, we believe construction success is built on systems, leadership, and people who care about the details. That’s why our first hire will always be the person who makes sure our projects — and our clients — are set up for success from day one.