Is construction still a relationship business? According to top executives in the field, absolutely.
At ABC’s Regional Construction Summit in March, construction executives from across the DC/Baltimore metropolitan region came together to discuss the ideal partnership between general and subcontractors. The key takeaway? Trust and communication are essential to every phase of business, from preconstruction and sales to site design and project closeout. Each panelist had their own compelling stories of how relationships—good or bad—played the starring role in making decisions and solving problems.
General contractors stated they were more likely to award projects, accommodate needs arising during construction and view requests as legitimate when dealing with trusted subcontractor relationships. Subcontractors shared that they were more likely to give better pricing, accommodate needs, and submit fewer and fairer change orders when working with a trusted general contractor.
Hearing this, the audience’s questions sought to make sense of the world many felt they were living in; one in which relationships don’t seem to matter anymore.
MORE (DIS)CONNECTED THAN EVER
If two things can be true at the same time, then the takeaway is this: Relationships do still matter, and the industry is increasingly less relationship-based. The difference today is that there are fewer real relationships being developed. Mired in the volume of tasks and reliance on technology, construction professionals are simply transacting business together without building enough real, meaningful relationships along the way.
If asked to pause and reflect, it’s almost certain that any construction executive can think of at least one powerful relationship they’ve developed over the years that brings significant value to their business. This proves two things: First, it is still possible to build relationships, and second, those relationships do matter.
THE EFFICIENCY FALLACY
One contractor from the panel shared that, when first starting his drywall business, he would drive to his clients’ offices to physically pick up a set of plans to bid. Inefficient as it was, that process forced a level of human interaction between general and subcontractor in the earliest stages of project pursuit. Today, with the use of any number of estimating software packages, general contractors invite a wide array of subs to bid projects with the click of a mouse—and subs, in turn, download plans in seconds and submit bids with not so much as a chat about the project.
Fundamentally, efficiency is a good thing—but it’s impossible to deny the natural barriers to communication and relationship-building this particular brand of efficiency creates. The same can be said for countless everyday interactions that used to occur in meetings or phone calls that have now been replaced with a mountain of emails waiting to be processed.
Contractors expressed: Emailing back and forth on a topic for days that could have been resolved with a five-minute call. Wasting hours producing a bid you never had a shot to win. Joining a virtual progress meeting and answering emails the whole time rather than paying attention. The easiest solution? Pick up the phone.
MAKE RELATIONSHIPS HAPPEN
Without naturally occurring human interactions to rely on, developing relationships in the construction industry today requires contractors to be much more intentional. Knowing that relationships and the trust they inspire are essential to success in every phase of business, contractors must consider proactive strategies to cultivate relationships with one another and be prepared to overcome the barriers presented by the modern world.
Everyone on the panel discussion referenced the valuable relationships that began through associations such as ABC, attending networking events getting involved in various boards or committees. But the effort cannot stop there. After meeting someone at an event, take the next step and schedule time to meet for a lengthier business conversation. Then, do it again. Then, resist the temptation to resort to email and suggest a call or meeting to discuss project-specific items.
STRANGER DANGER
The absence of relationships makes people transactional and mean. If you need proof of this statement, observe how people drive in traffic. Or perhaps you can just read the threatening, procedural email sitting in your inbox right now from a customer or vendor you’ve never actually met face-to-face.
In an industry struggling with some of the worst mental health statistics of any sector in the economy, relationship development can be the antidote to high-stress, low-reward environments. No one should dread going to work. When you develop relationships, take time to collaborate and resolve issues, own mistakes and thank one another for the hard work that successful relationships require, it makes it all worthwhile.
PLANNING AND ACTION
There is a huge opportunity in the building industry to create fun places to work on a solid foundation of repeat business with partners who genuinely want to help one another succeed. All it takes is planning and intention. Build a relationship development and maintenance plan for your business, assign team members to carry it out and reap the rewards for many years to come. It is not enough to build just a few relationships—your business should be built around a long list of friendships.
Relationship development takes effort, but it pays off in better win rates, better margins, smoother projects and an overall more positive work environment.
