How do I judge how many of an electrical contractor’s jobs come from repeat builders?

Ask the seller for a job list that names the customer, the type of work, the date and the amount billed. Sort it by builder. You are looking for names that come back, how regularly they come back and how much of the total they represent. A handful of loyal builders can be a strength, but only if you understand what holds them.

Ask how jobs are won. Do builders call the seller directly, request quotes each time or pass work under a standing arrangement? Read any written agreements, and note the payment terms and whether the builder has ever held back money.

Watch for gaps in the pattern. A builder who stopped sending work after a dispute, or who has recently begun to use someone else, tells you about risk. Ask the seller to explain both. With permission, speak to one or two builders about how they see the company. Ask whether they would continue after a change of owner. Finally, check whether the contractor has built relationships beyond the owner’s own contacts. Remember that a long list of small repeat customers can be as steady as a few large ones, so judge the pattern rather than the names alone.

Key takeaways

• Sort completed jobs by builder across several seasons.
• Ask why builders come back, and who they actually deal with.
• Speak with a builder before closing, with the seller’s permission.