Essential construction insurance
The 2008 recession hit the construction industry hard, leaving many construction companies unable to turn a profit. The main problem is that competitors win work in price and value projects, and when on site, they suddenly reveal all the hidden extras. Alternatively, they create inferior work due to improper cost-cutting techniques and value engineering, bringing the finished project to a happy conclusion for all concerned.
In today’s manufacturing marketing environment,
While cash-strapped construction firms often award contracts at prices below profit margins to pick up work, smaller companies struggle to win anything. In situations like this, the only way to win a contract over a low-cost competitor is to show your potential customer that you offer a service far superior to that of your competitor.
In times of financial distress,
Clients in all segments of the construction industry are not only looking for value for money, but also for first-class service. Cash flow is a problem for many developers and contractors, and contract terms are becoming too tight for some.
However, this type of environment is not sustainable in the industry as more and more small contractors come into our business and the standard of work done requires better work, thus costing the end user more money.
So what’s a small contractor to do?
You can provide service beyond the call of duty, focusing on solution-oriented service that delivers great value to your client in their quest to complete their project without a hitch. A great way to provide low-cost, high-value services.
Savvy manufacturing marketing can get your company through tough times by focusing on a few easy-to-adopt key principles:
First, by building good relationships with people in the related construction trades. A smaller company has an advantage here as larger companies can present a more personal face.
Second, by seeking strategic partnerships with like-minded, related businesses. This allows smaller specialist companies to offer a more comprehensive service to clients looking for a complete management solution for their construction project.
Third, by changing the way your business inquires about price tenders and profit estimates. Find ways to reduce margins by implementing efficiency savings.
Fourth, by making sure you’re on as many approved lists as possible. It can be a time consuming business, but it is necessary if you want to get opportunities with big clients like local governments, public sector projects, medical projects, large building contractors with different types of works. A reliable source of subcontractors is essential. .
Fifth, by providing value engineering for your potential client before the project reaches the planning stage of the construction process. For example, providing a quote to an engineer before a project moves into the planning phase is very useful. Value engineering explores various cost-effective options in equipment and technical specifications.
Fifth, by getting more competitive rates and discounts from your suppliers. If you are coming from a specialist trade such as electrical, plumbing or air conditioning, you will already have big discounts available from your suppliers and passed on to your customer.
Construction marketing is becoming an important part of the construction business environment, but it should be done sensitively and by people who know the industry.
Steve has experience as a Business Development Manager in the construction industry. Y in one
Article Source: http://EzineArticles.com/7211220 Although there are many types of construction projects, most of them fall into one of two categories: building construction and industrial construction. They overlap, but each type requires its own process—planning, design, and implementation (not to mention the various permits required).
Construction projects are a big part of the construction industry. Although most of these are small projects (additions and renovations), there are also large projects such as the construction of a skyscraper. The first type of building construction is commercial construction. It includes structures for commercial use – skyscrapers, banks, gas stations, hotels, restaurants, supermarkets, etc. Naturally, these are usually more expensive and time-consuming than residential construction. Commercial construction is rarely done without hiring a construction company because it often requires access to not only the work, but heavy, dangerous machinery.
Residential construction is another type of building construction