Adding Value to Win Work
To succeed, companies either need to be the lowest cost supplier in the market (like Ryan Air) or differentiate themselves by adding value. In good times this allows you to charge a small price premium, in tough times you may not be able to increase your price, but offering value will increase your chances of winning work.
Value can be delivered in many ways; speed of completion, flexibility during construction, minimal disruption, innovative design solutions or providing architects with design advice.
Research conducted a few years ago by the publishers of Building Magazine found that 74% of architects involve specialist contractors in product or material selection. Further research conducted by RIBA Enterprises last year found that 55% of architects consider that collaboration with the contractor on a specification reduced errors. Research conducted by Competitive Advantage amongst a group of specialist interior contractors in 2009 also found a high proportion were involved in advising architects.
So why invest time advising architects when you might get no return from your effort? There are a number of benefits to be gained:
The opportunity to influence the specification is the most important. If you have your own system or are one of a few approved installers of a system, helping an architect to design a solution using your system will restrict the number of contractors able to install and hence reduce competition. If as part of that design solution you can include features where you have a high level of expertise, then you may also create a situation where your competitors see a high risk in the work and increase their prices to reflect this. Either way, you will have a good understanding of the nature of the project when you come to bid and should be able to prepare a comprehensive and competitive proposal.
By giving the architect advice, you will be demonstrating your competence and building his confidence in your ability. However do be sure to make it clear that it is only advice you are giving and you are not accepting any design liability.
Depending on the type of contract, the Main Contractor may invite the architect to propose suitable sub-contractors. He may also be involved in reviewing the bids, especially where aesthetic considerations are involved. If there is a close call between two contractors, having the architect’s support could win you the project.
By giving the architect budgetary prices you can also ensure that there are sufficient funds for your proposed solution and that at the time of bidding your price will be within budget, reducing the chance of low spec solutions from competitors being considered.
Having a “friend” in the design team can also help to keep you informed about progress with the project and any design or cost issues which arise during construction, providing you with the opportunity to propose a new solution.
If you decide to start working with architects do not expect quick returns. There will be long lead times on projects before they go to tender. It will also be time consuming, so decide how much time you can devote to this activity, and ensure that whoever will be advising the architects has the time. The thing that architects hate most is unreliable support.
When dealing with architects do not be concerned about their high level of training and expertise. Although some are specialists, most need to be generalists and do not have the level of specialist expertise combined with practical experience that you offer. What they want is accurate, reliable design advice which is available on demand. They will have a list of preferred advisors that they trust and will only consider alternatives when this list does not offer what they want or they have been let down. Getting onto that list is hard work and staying there even harder. But the reward is early involvement in projects and the opportunity to influence it in your favour.
Start by contacting just a few architects based on the time you have available to give advice. It is important to be selective in your choice so that you maximise the return on your investment of time.
You should be talking to architects who design the type of project where you have most success as a contractor. Also ensure that they have commissions, you do not want to be spending your time advising on a speculative project. The best way to identify targets is to purchase a list of architects who have recently won projects of your preferred type from Glenigan or Barbour ABI. You do not have to subscribe to these services to buy this information and £500 can get you a comprehensive list of the best prospects and projects.
Having drawn up a list of target architects look for the ones you know from past projects, especially where the architect was pleased with your work. It is very difficult to make the initial contact with an architect so a past relationship will make an effective door opener. You can then explain that you are developing your technical support, ask where he goes for this type of advice at the moment and offer him your advice.
If you are an approved installer of a proprietary system get maximum support from the manufacturer. They should be talking to architects already and while the salesman will not want to give up his contacts he should be pleased to have you follow-up on leads he does not have the time for. However ensure they are not just Glenigan leads but genuine enquiries and that you receive them on an exclusive basis, you do not want to find your competitors talking to the same contacts. Joint calls with the manufacturer can also be beneficial for both parties. Often it will help the manufacturer to involve someone with the practical experience on installation, so offer this support. Similarly, if you are able to bring the manufacturer to a meeting with one of your contacts it demonstrates the close working relationship between your companies, building your credibility.
Manufacturers often run CPD seminars for architects. These are usually held at the practice at lunchtime and contribute to an architect’s compulsory technical learning. While it is not worth running your own seminars, try to get invited to seminars being held by partner manufacturers for architects in your area. This will give you the opportunity to meet some of the architects and perhaps even demonstrate your technical expertise by answering questions.
Giving design advice to architects is demanding but has many benefits to the specialist contractor. At times of recession it is the opportunity to gain competitive advantage. When the construction industry does start to recover architects’ practices will become stretched, needing your help more. Then the opportunity to work with them and secure early involvement with projects will be even greater.
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Chris Ashworth, founder of Competitive Advantage Consultancy, provides strategic marketing, research and training services to the construction industry. He is a member of the organising committee for the Chartered Institute of Marketing Construction Industry Group (CIMCIG)
First Published: March 2010, Interiors Insight
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