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Using Information to Find Construction
Work
by: Larry A. Cain
Key to growing a construction company, or any business, is having sufficient
and accurate information. Knowing what opportunities exist and how to
pursue those opportunities is critical. This
article is intended to outline prudent methods for procuring work as
pertains to the chronological life of a project. It is not intended
to offer advice on salesmanship or other selling techniques or styles. The fundamental
four basic phases in a construction project's life are:
Conception,
Design, Bidding and Award.
Conception
Projects in the conception phase are defined as those
in which a design team has not yet been selected. Projects in this stage
are detected because some preliminary action has been taken by the owner
or his or her representative (e.g. property tax transfer, environmental
permit, etc). The opportunity for contractors here is in design-build.
Selling points to the owner include your ability to employ value engineering
from relevant experience, lower overall design costs, faster delivery,
easier changes as the projects evolves. One important consideration
in pursuing pre-design projects is that your first competition will
be from architects and engineers. Their selling points will be greater
expertise in design, value engineering, the ability to place the project
in the competitive bid market, etc. How you, the contractor, approach
the owner is critical. Every consideration must be taken to appear as
professional as any architect will.
Your first contact should be by mail. Few owners appreciate
a cold call and will immediately become suspicious of your level of
professionalism. To actively pursue conception projects, upon hearing
of any good opportunity contractors must routinely send letters of introduction,
and if possible, a professionally prepared company brochure to owners.
The use of a computer here is critical so introductory letters can be
sent routinely and with a professional appearance. To simplify this
a series of introductory letters should be developed and stored in the
computer, ready to be personalized for common project types, e.g., residential,
light commercial, heavy commercial, etc. Each stock letter could include
examples of similar projects successfully completed. The quality of
your letter is crucial. The importance of such introductory letters
may be a reason to contact a professional writer. One such individual
who specializes in construction is David Wood of Words From Woody, (800)
439-9663.
Once the appropriate letter has been sent, wait 7 to 10
days before making a follow-up call. An effective letter will get you
in touch with the right individual when calling, and good sales skills
will get you a face to face meeting, the next step to closing the deal.
Design
Design projects are defined as those where an architect or engineer
has been selected and the projects are being prepared for the construction
phase. Contractors can benefit from information on projects in the design
phase by contacting the selected design team, so as to request inclusion
among bidders being allowed to bid the project. Ideally, you as a contractor
can enter into a negotiated contract at this time, thus keeping the
project out of the bid forum. Suppliers can use planning information
to get their product specified in the bid documents. Subcontractors
who supply or perform a unique service can benefit similarly.
As with contacting owners, your first contact to an architect
should be by mail. The reasons for this are the same as for when contacting
an owner, but here there are additional sensitivities. Projects in the
design phase offer real opportunity and thus the architect or engineer
now will be pursued by general contractors as well as suppliers of products
for possibly all 16 CSI divisions. As a natural defense he or she will
become selective about who they talk with. Only a professional introductory
letter followed up with a correctly timed phone call will yield your
company fair consideration.
Bidding
Once a project reaches the bid stage, opportunities change. Hopefully
by now the general contractor has insured inclusion in the list of bidders,
subcontractors have had their subbids qualified, suppliers have had
their product specified or at least approved. Bidding, by definition,
is competitive and thus accurate, current information at this point
is a benefit in ways much different then previously. General Contractors
need a list of bidders to see who they're competing with, bid dates
and times, project walk-through information, project descriptions, bonding
requirements, where and how to obtain or view plans, etc.
Subcontractors need project descriptions so they'll know
if their services are needed, complete lists of bidding general contractors
so their bid will go out to all potentially successful bidders, information
on how to obtain or view plans, etc. Suppliers need project descriptions
to access opportunity, plan locations, etc.
Award
Now it's all over but the construction. The benefits of timely, accurate
information at this point are limited to generals who wish to see how
their bid compared to their competition, and subcontractors who need
to know which general contractor will be awarded the project so they
can insure their subbid is considered. Subcontractors and suppliers
who provide services bought-out late in a project's life, such as trash
removal and equipment rental, need accurate award information also.
In conclusion, the key to growing a successful construction
company is acquiring projects with profit potential. Accurate and timely
information, along with the appropriate response to that information,
will ensure growth. Know what projects exist, what phase the projects
are in, and respond accordingly and professionally. Key to this is current
and correct information.
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