How do I turn my project manager into the next owner of my building company?

Start with an honest conversation. Some excellent project managers have no wish to carry the risk and the bank guarantees that come with ownership. Ask what they would want, and what worries them. Then compare their strengths with what an owner does: pricing, bidding, client relationships, cash flow, hiring and deciding when to say no. Those are the gaps to close.

Next, close them in practice. Give your manager a share of the owner’s work, such as final pricing, client meetings and supplier negotiations, and see how they cope. Introduce them to your accountant, your banker and your bonding contacts. Let clients get used to dealing with them. The learning period matters as much as the legal paperwork.

Then settle the money and the structure. Employees rarely have enough savings to buy a company outright, so ask about financing, a gradual purchase and what you would accept as payment over time. Each approach has different tax and risk effects, which your lawyer and accountant should explain. Write down the terms, the timeline and what happens if either of you changes your mind. A clear agreement protects the friendship as well as the business.

Key takeaways

• Ask whether your project manager actually wants to own the company.
• List the owner’s tasks they have not done, and hand them over step by step.
• Introduce them to your banker, accountant and key clients early.
• Agree the structure, payment and timeline in writing with advice.