In the project-based world of construction, keeping a full sales (bid) pipeline is critical to the long-term health of the business. There are many ways to market a construction business, from web campaigns, to postcards, to flyers, and more.
But perhaps the most important marketing resource available to a construction business – unmatched in cost effectiveness and persuasion power – is customer word-of-mouth.
It sounds self-evident, since surely every contractor goes into a job wanting to impress his customer, but far too many contractors expect their work product to speak for itself without putting in the extra effort to manage the customer experience.
Reality check: On the residential side, few customers can tell the difference between good work and great work. And on the commercial side, general contractors (GCs) won’t give you extra points for great work (they expect it). That’s why "professionalism" is so important in the contracting business – it can be a huge driver of future business. Happy homeowners will tell their friends, and happy GCs will keep you on their short list for bid invitations.
On the commercial side, general contractors (GCs) won’t give you extra points for great work (they expect it). That’s why "professionalism" is so important in the contracting business.
Here are some key strategies contractor’s can use to ensure they look more professional in the eyes of their clients:
No. 1 – Be very organized and by-the-book with Change Orders
Make sure change order documents clearly specify why the CO is needed, what it will cost, and what the contract impact will be. Get them signed or, if the GC is the one producing the final versions, make sure your records are updated to match theirs.
No. 2 – Produce very clear invoices, and don’t screw up AIA applications for payment
Construction billing can be confusing for clients. For residential work, you can increase client comfort by including line item language from the original proposal as you bill, and by including high-level contract snapshots to show where they stand in terms of work completed and work remaining. On the commercial side, GCs often have very little patience for AIA billing errors. AIA billing is inherently complicated, and GCs hate trying to figure out why your pay app isn’t tying out in their system (and then getting you to fix it). Do it right the first time.
No. 3 – Communicate, especially with pictures
A picture is worth a thousand words, and nowhere is this truer than in residential contracting. If you’re doing a month-long project for a client, send a weekly email detailing progress with a few pictures attached. Even if you’re communicating with the client on a daily basis, a weekly wrap up is a great way to help them see beyond the daily minutiae and feel like the project is on-track.
No. 4 – Dress well (enough) – appearances matter
Residential contractors must remember that they are asking their clients to trust them with their most important asset: their home. If the work will allow it, consider moving up from printed T-shirts to polos embroidered with a company logo – even if just for foremen or supers. It will show your clients you take your business and your client relationships seriously, while building trust and confidence. It sounds silly, but it’s a very inexpensive investment that provides a big payout in terms of perceived professionalism. On the commercial side, there’s a reason why project managers and superintendents wear dress pants and button-downs – they’re trying to project competence and seriousness to building owners and developers. They probably won’t care if your workers show up in T-shirts, but they’re likely to appreciate a cleaner, more dressed-up appearance from you, your supers and your foremen.
Having put in all this effort to run a job well and to be professional in your dealings with the client, don’t be afraid to ask for referrals or added business at the end of the job. You’ll be surprised how willing people are to help if they’re satisfied.
Dan de Roulet is co-founder and partner program manager for Knowify LLC. de Roulet, who has a long history as an entrepreneur and business developer, strongly believes in the potential of the Knowify software to significantly streamline construction company operations.