Building a better construction business involves many different factors. However, none of the others will matter if you are unable to win bids and clients.
Whether launching a startup in this sector or looking to breathe new life into your company doesn’t matter. Understanding the reasons why your construction firm is struggling will give you the foundation to build upon. When followed with the right steps, you should be able to build a better situation for immediate and future success.
Focus on addressing the 10 issues listed below and you should see the difference.
#1. Compliance
First and foremost, all clients must feel able to place their trust in your company. They need to know that the company is legitimate and ready to provide a safe and reliable service. Therefore, compliance with all safety programs and construction regulations should be at the top of your agenda.
It may seem a daunting prospect but help is available. For example, ISNetworld compliance assistance will take care of OSHA Form 300 logs, COI renewals, and client site tracking. Avoiding the self-managed route saves both time and money. It also ensures that compliance is maintained in a changing landscape.
Construction firms should also look to join various Builders Guilds in their region. Aside from actively helping you follow the right protocols in business, it is a move that impresses clients. After all, it is an instant verification of your professional approach.
#2. Market Positioning
While all prospective clients will check for compliance, their other demands can vary greatly. A private home builder, for example, will have different needs from large commercial clients. Likewise, governmental projects may be hit with unique requirements. So, if you try to impress everyone, you may end up impressing none.
It is better to succeed in a small arena than fail by being too generic. Knowing how to position yourself for a specific niche like rеsidеntial, commеrcial, or industrial is a key step to success. Aside from allowing you to approach the right clients, it will direct your pitching strategy and support your market research.
Bidding for unsuitable projects is a waste of time, money, and resources. Conversely, when you are focused on a specific type of client, you will find it far easier to develop more impactful bids. Your portfolio is sure to resonate well too.
#3. Branding
The role of branding and marketing should not be ignored in any industry. The construction sector is no different. Once you know your niche, you should find it far easier to construct a winning website supported by brand imagery. Likewise, selecting the content and tone of voice that engages your target audience will feel easier.
As well as a memorable logo and visual identity, you should tell a story. Humanizing your brand while simultaneously showing your core values is vital. It highlights why you are the right match for them and can open the door to USPs. Whether it’s using green materials or innovative tech, this plays a key role.
Of course, the right brand image must be supported by being seen in the right places. Once you know your target market, finding offline opportunities is easy. Meanwhile, a strong SEO and social media marketing strategy will help clients find you.
#4. Reputation
Strong internal branding and marketing can help your construction firm stand out from the crowd. Nevertheless, clients will also want to see that you have a reputation for producing quality results. It should not surprise you given the cost and importance of their projects. Verified and unbiased external sources are your greatest friend.
People now look for social proof with all major decisions, not least because they can find it from their smartphones. Testimonials and client reviews instantly let leads know that your firm is capable of completing jobs to high standards. When supported by images of past projects, success is assured.
Aside from building a strong reputation with the help of past clients, you should look for accolades. Industry awards and local business awards will make a huge difference to your reputation. Proposed clients will often trust this and respond better to your firm.
#5. Speed
When managing any business operation, you must put yourself in the client’s shoes to understand what matters. Completing projects to the highest possible standards is the priority, but many clients also want fast results. They want to either enjoy or monetize the assets ASAP. Quick turnarounds will make a big difference.
You mustn’t lie with unrealistic time frames as this could lead to partial refunds and bad reviews. So, going the extra mile to work fast without compromising quality is vital. Maximizing the efficiency of machinery is vital for manufacturing and completing on-site assignments. Employees must also be trained.
Other steps to improve speed include working through the night on civil construction jobs. Or using fleet management for journeys. When supported by a network of contractors who can fill in for absent workers, your teams can deliver greatness.
#6. Project Planning
Showing that your business is capable of completing a client’s type of project is one thing. In reality, though, true success comes from highlighting that you understand their vision and can make it a reality. Rushing through project specifications will mean you miss key points. It also suggests that you don’t care.
Site visits should be viewed as a necessity. They give you the chance to survey the area and get a far better feel for the project. You can also use drones and 3D laser scanners to deliver accurate results. When combined with visual representations from CAD designs and videos, you can give clients far clearer insights.
It is also a chance to analyze issues like access while also conducting risk assessments. In turn, you can provide a comprehensive and clear bid that is tailored to the client. Working with them ensures that they retain some control, which also aids the cause.
#7. Bid Costs
When thinking about what matters to the client, it’s impossible to ignore the role of pricing. Residential project owners will have limited funds. Similarly, commercial or government clients will have budgets that must be adhered to. Providing an accurate and detailed look at how much the project would cost the client is vital.
An accurate estimate must factor in material costs, labor costs, and other expenses. Likewise, you must consider what resources are already available. Crucially, you must avoid basic mathematical errors. Cost Project Management Software can help you stay on top. Not least because decision-makers will find it easier to understand the proposal.
As a construction firm owner, you need to be competitively priced but leave some room for profit and unexpected issues. It’s better to price yourself out of a job than take on a project that leaves you at a financial loss. Do not forget it.
#8. Outdated Ideas
The construction industry is moving at a rapid pace. In fact, the North American sector alone is valued at nearly $ 2.5 trillion. As populations grow, there is an added pressure on residential, commercial, and industrial clients. As well as increased volume demands, construction firms must keep pace with the latest capabilities.
Working with outdated technologies, tools, or tactics will hold you back. It becomes very hard to catch the eye and win bids when you have fallen behind your competitors. Following the latest Construction Market Trends should be considered essential. If you have a passion for the sector, this should be emotionally rewarding too.
Staying ahead of the competition from a tech standpoint isn’t the only key step, though. Knowing material costs, labor costs, and other key landscape evolutions will help you construct better bids.
#9. Value Proposition
As already mentioned, the budget is a key part of any bid. However, cost and value aren’t always the same thing. Ultimately, clients want the best. Given that they are likely to view several bids and quotes, even if it’s for a home, you need to show your value. Otherwise, you will lose out to competitors.
There are many ways to highlight your value. This can range from having highly trained staff to exceptional records of completing jobs and time and budget. Your experience in jobs like the one the client needs could also sway their decision. Your new equipment or flexible payments can also support your bid.
Ultimately, the goal isn’t to show that you are the best construction company. Instead, it is to show that you are the best match for the client. Therefore, adding a little personalization to every proposal should be on the agenda.
#10. Communication
Finally, clients want to hire the right people. Transparent communication throughout the process adds convenience and confidence. Ignoring inquiries or delaying your responses can have drastic impacts. After all, it suggests that they will struggle to contact you should any issues surface.
Meanwhile, you need to be friendly and consistent while providing clear expectations. This can only work if you have a company-wide buy-in from project managers and workers. Cultivating a better working environment for your employees is essential. Their positivity will subsequently spread to the client.
Great communication alone doesn’t yield success. However, it does help you express ideas and keep clients at ease. Better still, after the bid has been won, it’ll position you to satisfy their demands. Perfect.