Is Price Really all that Matters Right Now to Land Commercial Construction Projects?
Dec 8, 2010 Surveys, marketing tips
Craig Noble
I hear the buzz in the industry just like everyone else…there’s a concern that it’s currently a foregone conclusion that projects are being awarded soley on price, and that industry relationships no longer matter. So, I decided to find out what the masses really had to say about the matter by including the question in one of our surveys. I think you will find the results encouraging.
Keep in mind as you read on, our national database of architects, engineers, general contractors, specialty contractors, material suppliers and other companies related to the commercial construction industry is who answers our surveys. These businesses are then able to apply the results to their strategic planning when they receive the responses via email the following week.
The exact survey Q&A was:
When your company converts a project lead into a contract, is it most often the result of RELATIONSHIP or PRICE?
RELATIONSHIP 55%
PRICE 45%
So, what this information tells us is that despite the industry buzz, more than half of the project decision-makers are still primarily considering their business relationships when awarding work to companies. Therefore, it bears repeating that you should continue to maintain a high level of awareness for your company among your current and potential industry relationships, because it’s really not all about the lowest price.
If you think this is interesting, check out another survey question that we asked about the importance of COMPANY RELATIONSHIPS vs. COMPANY EXPERIENCE.
If you start putting together the pieces of info learned from these two survey questions (and the others we’ve done), the very basic formula for success in our industry is simple:
Company Relationships + Company Awareness = Projects/Revenue.
For more information about the commercial construction and design industry’s most comprehensive (and easy) qualifications tool, visit jobsite123.com.
Showcase Your Local Market Knowledge When Bidding on Construction Projects
Nov 23, 2010 Surveys, marketing tips
Craig Noble
A recent survey of our national database of architects, engineers, general contractors, specialty contractors, material suppliers and other companies related to the commercial construction industry revealed an obvious competitive advantage opportunity…
The exact survey Q&A was:
What is the maximum distance your company would consider pursuing a project bid opportunity?
ENTIRE U.S. 19%
NEARBY STATES 36%
HOME STATE 21%
LOCAL COUNTIES ONLY 24%
It shouldn’t come as any surprise that 76% of companies are pursuing projects beyond their own backyard. This means that you are likely bidding for projects alongside companies from “out-of-town”. Therefore, when you are bidding on projects within your immediate market area, keep in mind that you can differentiate your company from the “out-of-towners” by showcasing your local market knowledge to gain a competitive advantage.
Good advice huh, Little Buddy!?! Now go checkout jobsite123.com …it’s full of smart architects, engineers and contractors.
Does Your Company Subscribe to a Business Leads Service?
Nov 17, 2010 Surveys, marketing tips
Craig Noble
A recent survey of our national database of architects, engineers, general contractors, specialty contractors, material suppliers and other companies related to the commercial construction industry revealed how important it is to subscribe to a business leads service…
The exact survey Q&As were:
Does your company currently subscribe to a formal service that provides project bid opportunities (Examples: Dodge Reports, Bidclerk, etc.)?
YES 68%
NO 32%
If you answered YES to the question above, have any of them become paying clients?
YES 74%
NO 26%
Three-quarters is a huge percentage turning their subscription-based leads into paying clients. So, just incase you were “on the fence” about whether or not this business development tactic was worthwhile…now you know!
This also explains why we began offering this service. Click the following link to check out our new Construction Project Notification Service.
Act now…we are currently offering this new service at an “introductory price point”, so it is way under-priced, Fella!
Effective Business Development for Commercial Construction and Design Companies
Oct 25, 2010 Surveys
Craig Noble
A recent survey of our national database of architects, engineers, general contractors, specialty contractors, material suppliers and other companies related to the commercial construction industry revealed the key to effective business development…
The exact survey Q&A was:
Which do you believe is more important to business development: COMPANY RELATIONSHIPS or COMPANY EXPERIENCE?
COMPANY RELATIONSHIPS 90%
COMPANY EXPERIENCE 10%
Effective business development is simple. It starts with Who You Know, and is closely followed by What You Did. So get out there to the local meet and greet Events in your market area…then, just refer clients and prospects to all of your project successes in your built-out company profile in jobsite123.com.
Not Interested in Higher Profit Margins on Federal Construction Projects?
Oct 1, 2010 Surveys
Craig Noble
We recently surveyed our national database, which includes: architects, engineers, general contractors, specialty contractors, material suppliers and other companies related to the commercial construction industry. The percentage of companies that answered NO to one of the questions was particularly startling to us…
This was the exact survey Q&As:
Would you like to learn how to make HIGHER than average profit margins on federal construction projects?
Yes 72%
No 28%
We think it’s amazing that so many companies said NO.
Translation: it’s not likely that 28% of the industry is so fat and happy with work right now that they would rather not learn how to make more money with federal construction projects…what’s more likely is that the 28% that said NO are so intimidated by the federal process that they don’t believe that learning more would be worth their time.
Time to Pursue Federal Construction Projects?
Sep 22, 2010 Surveys, commercial construction industry
Craig Noble
A recent survey of our database revealed that more than half of the companies in the commercial construction and design industry are NOT pursuing federal work. And roughly the same percentage of companies in the industry are not even registered with the United States CCR (Central Contractor Registration).
The two survey Q&A’s were:
Is your company currently pursuing any federal construction projects?
Yes 44%
No 56%
Is your company registered with the CCR to bid on federal construction projects?
Yes 42%
No 58%
Translation: with more than half of the companies in the commercial construction and design industry not pursuing federal work, perhaps your company should consider the opportunity.
Got Construction Projects as a Result of the Federal Stimulus Package?
Sep 20, 2010 Surveys, commercial construction industry
Craig Noble
A recent survey of our database revealed that almost a third of the companies in the commercial construction industry have work that is directly attributable to the federal stimulus package. The percentage of companies that have found a way to tap into the federal stimulus is higher than we thought, so we believe it indicates a trending opportunity.
The exact survey Q&A was:
Has your company been awarded any work as a result of the federal stimulus package?
Yes 29%
No 71%
Translation: if your company is not pursuing work associated with the $11 trillion stimulus, perhaps you should be.
Suggestion: create an awesome company profile in jobsite123.com, and use it to get the word out to project owners and project managers about your company’s experience and reputation.
Construction Activity: Private Sector vs. Public Sector
Sep 14, 2010 Surveys
Craig Noble
A recent survey of our database revealed a much higher level of privately-funded construction activity in the market. Contrary to the popular belief that the only place to find construction projects is in the public sector, more than half of the companies in the commerical construction and design industry are still working on private sector projects.
The exact survey Q&A was:
Which market sector is your company currently deriving most of its revenue from?
Private Sector 52%
Public Sector 48%
Translation: if your company is more comfortable working in the private sector, there is still activity to pursue.
Suggestion: stand-out from the Wannabes by making it easier for project owners and project managers to access your company’s experience and reputation by creating an awesome company profile in jobsite123.com.
LEED Projects Experience is now a Must-Have for Construction and Design Firms
Sep 9, 2010 Surveys, marketing tips
Craig Noble
A recent survey of our database indicates that 64% of companies in the commercial building industry have LEED projects experience. So from a marketing perspective, LEED experience is now a must-have for construction and design firms competing for projects.
The exact survey Q&A was:
Has your company worked on any projects that have achieved a LEED designation?
Yes 64%
No 36%
For the 36% of the industry that does not yet have LEED experience, here are the basics:
There are four LEED levels for commercial buildings…
LEED Certified
LEED Silver
LEED Gold
LEED Platinum
And, each of the above LEED designations are awarded according to a 100-point scale based on the environmental impact of the following five categories…
Sustainable Site
Water Efficiency
Energy & Atmosphere
Materials & Resources
Indoor Environmental Quality
Additionally, there are two bonus categories…
Innovation in Design
Regional Priority
The above survey of our national database of commercial construction and design companies included: architects, engineers, general contractors and specialty contractors.
Competition Among Construction Companies is Heating Up
Sep 3, 2010 Surveys
Craig Noble
Our national database of commercial construction and design companies includes architects, engineers, general contractors, specialty contractors, material suppliers and related vendors/corporate services.
We recently surveyed our database, and we learned that 2/3’s of the industry is entering new markets. The exact Q&A was:
Is your company pursuing work outside of your normal market area?
Yes 67%
No 33%
We all already know that the ailing economy is causing increased competition among companies chasing fewer construction projects in their local market area. But the above survey results also tells us that competition is further intensified with companies entering new markets to chase work.
Translation: only the strongest companies will survive the current economic cycle.
Suggestion: stand-out from your competition by making it easier for project owners and managers to access your company’s experience and references by creating a profile on jobsite123.com
