Your first construction arbitrage deal comes down to one thing: being the most professional response a client receives. I say that from experience - not because I had a slicker pitch or a fancier website than anyone else, but because I was the one who called back the same day, showed up to the survey, and sent a clean quote within 24 hours. In construction, that alone puts you ahead of most of the market.
This is the exact process I use to move a lead from first contact to signed deal and deposit in hand.
How to land your first construction arbitrage deal, step by step
Step 1: respond within the hour
The first company to engage professionally almost always wins the survey slot. Construction customers send their enquiry to several companies and go with whoever seems capable and responsive. You do not need a portfolio. You need to pick up the phone.
When someone enquires, call rather than text if you have their number. If you miss it, call back within the hour. Start with: "Thanks for getting in touch - I'd love to come and look at the job. When suits you?"
Step 2: run the survey properly
The survey is where the deal is actually won or lost. Show up on time (being five minutes early is fine; being five minutes late is not a good start). Walk every area that will be touched by the work. Ask questions:
- What is the timeline?
- Is there a budget in mind?
- Have you had other quotes?
- Is there anything specific you are worried about?
Listen more than you talk. Take notes. What you learn here shapes the quote and tells you whether this client is one you want to work with.
For jobs under a couple of hundred dollars, a detailed phone call can replace a site visit. For anything involving a day or more of trade labour, go in person.
Step 3: get sub prices before you quote
Before you write a number, get a price from your subcontractor. Call your vetted trade, describe the scope, and get their price or day rate. Then add materials, any skip or equipment hire, your overhead, and your margin.
A 20-25% markup on sub costs is a normal, defensible starting point for residential work - it covers coordination, risk, warranty and your time. The full mechanics are in Pricing Jobs and Protecting Your Margin. Never quote without a sub price in hand first. Guessing at trade costs is how people lose money on their first jobs.
Step 4: send a clean quote within 24 hours
Send a PDF or a clear document - not a voice note, not a rambling text. The quote should show:
- What is included (the scope, in plain English)
- What is excluded (any items you are explicitly not covering)
- The total price
- Payment terms (deposit, stages, final payment)
- How long the quote is valid for (14-28 days is standard)
Do not show a cost breakdown. You are not a supplier giving them a cost-plus invoice - you are a contractor providing a price for an outcome. What you pay your subs is your business.
Step 5: follow up at 48 hours
If you have heard nothing after two days, send this: "Hi [name], just checking in - did you get the quote okay? Happy to answer any questions."
That is it. Most of my first deals converted at this exact step. People get busy, they mean to reply, they forget. A short, friendly follow-up is not pushy - it is professional. The operators who do not follow up lose to the ones who do, almost every time.
If they still have not replied after a week, one more check-in is reasonable. After that, move on - they have made a decision and have not told you.
Step 6: handle the objection
The most common response you will hear from a client considering your quote is some version of "it feels a bit expensive". This is almost never a genuine price block. It is often hesitation, or them testing whether you will crack.
Do not cut your margin. Instead, ask what their budget is and offer a reduced scope for that number - fewer rooms, a simpler specification, phased work. The saving comes from doing less, not from you earning less. If the full scope is what they want, stand behind your number and give them time to think.
The first time you cut your margin because someone pushed back, it becomes a habit that quietly destroys the whole model.
A client who pushes very hard on price before the job even starts is telling you something about how they will behave throughout. Sometimes the right answer is to let it go.
Step 7: get it in writing and take the deposit
Once they say yes, confirm the price and scope in a written message before you do anything else. Then get the deposit - typically 30-50% of the total - before any work starts or materials are ordered.
The deposit covers your first materials purchase and your first sub payment. It also filters serious clients from tyre-kickers. A client who refuses any deposit at all is a risk you do not need to take on your first job.
For the contract itself, a simple written agreement covering the scope, price, payment terms, and what happens if things change is enough to start. Full contract templates and variation clause guidance are in Contracts, Insurance and Staying Legal.
Your first deal, realistically
Expect to quote 4-8 jobs before the first one converts. That is normal, not a signal that the model does not work. Track every lead and every quote, follow up on all of them, and the numbers work in your favour over time.
Your first job will not be perfect. There will be something - a miscommunication, a scope change, a trade who ran a day over. That is fine. A real job with real money on the line teaches you ten times more than another month of planning.
The 90-day plan covers the full setup and first three months. For getting in front of clients in the first place, How to Find Clients (Without Knocking on Doors) covers the lead channels that work from day one.
Once you have landed the deal, the next question is how to run it from a distance - that is covered in Managing Subcontractors You've Never Met.
Come and share how your first deal goes in Construction Arbitrage Players - the Skool community where people are doing this, not just reading about it. The wins and the lessons from first deals are some of the most useful threads in there.
THE FAMILY SECRET - How Construction Arbitrage Really Works - the book on the full model, coming soon.
Frequently asked questions
How do I get a construction client with no track record?+
Speed and professionalism beat experience every time at the enquiry stage. Respond within an hour, turn up to the survey, send a clean quote within 24 hours, and follow up. Most tradespeople and even GCs are terrible at this. Being fast and clear is the entire competitive advantage when you are new.
How many quotes do I need to send before I get my first yes?+
Expect to quote 4-8 jobs before one converts. That is not failure - it is a normal close rate when you are new and unproven. Track every lead, follow up on every quote, and the law of numbers works in your favour. The operators who stop after three no-replies never find out how close they were.
How much deposit should I take on my first job?+
Take enough upfront to cover your first materials and first sub payment - typically 30-50% of the total quote. Never start a job without a deposit. If a client refuses to pay any deposit, that is a red flag, not a negotiation point. Walk away.
What if the client says my quote is too expensive?+
Do not cut your margin. Change the scope instead. Offer a stripped-back version of the job for a lower price, so the saving comes from less work, not from you earning less. If they want the full job at your price but are hesitant, give them 48 hours to think. Most price objections are actually hesitation, not genuine price resistance.
Do I need a website to get my first deal?+
No. Your first deal will almost certainly come through your personal network, a local Facebook group, or a referral. A Google Business Profile is more useful than a full website at this stage. Get the first job, get a review, build from there.
Rob LazFounder
I'm a founder of several construction companies and of Contractor Club. I run a seven-figure construction business remotely - I haven't touched a tool in two years - and I teach others how to do the same.
@roblaz__ · 20k followers on Instagram →Run the model with people who already do
Reading the method is step one. Inside Construction Arbitrage Players you connect with players from around the world who run construction arbitrage every day and make real money from it - share your deals, get answers, and get in the game. Founding-member access is open now.
For the operator life and the inside story, see Contractor Club.
The Family Secret - how construction arbitrage really works - is coming soon.
A construction business built this way is a sellable asset
Systems, subs and margin - that is exactly what buyers pay for. If you own a construction or trade business and the exit is on your mind, list it on ContractorExit, the marketplace for buying and selling trade businesses. The valuation is free, so you find out what it is worth before you decide anything.
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