advanced search

Understanding the Estimating Process - Part 2 of 12

Feb 23, 2011 5:05 PM, By Linda Candels, Candels Consulting

Understanding the estimating process from start to finish

Last month, we discussed the first step in the estimating process — getting to know your business. Now that you’ve assessed your business, know your overhead, and have a deeper relationship with your accountant, you’re ready to take the next step. Sure, you know your business, but the question is, “Do your potential clients know you?”

We know price is a big driver in purchasing decisions; however, when a general contractor, developer, construction manager, or owner is faced with two similar prices — and they know one company over another — who is more likely to get the contract award? You guessed it: the one with the relationship. In addition to knowing potential clients, it also helps to make your expertise known. If you have a long company history in the type of work you’re bidding, don’t be shy — promote this fact.

As in any business, but especially in the construction industry, the power of relationships is significant. Relationships help you find the private jobs as well as jobs general contractors may already have. Contractors who have remained busy despite the economic downturn have put time and effort into building and maintaining relationships with their client base, making it an integral part of their business — not just something they do in their spare time.

Just as many contractors have viewed the task of getting to know their business as daunting, some may feel the same way about establishing, building, and maintaining relationships with clients. The truth is all you need is time. With a surprisingly small amount of effort, you can build profitable relationships, just by making this goal a priority.

The cold-call method is a great idea. Although you might not get to see the person you’re calling on, you can leave your business card, some company information, and even a box of doughnuts for the office staff. Once you get your foot in the door, be prepared to bid a few jobs before you’re awarded one. This is the contractor’s way of getting to know you as he watches how your prices come in. Watch for potential new clients when you’re driving around town, and stop to introduce yourself. Check out construction sites too; it’s all about being in the right place at the right time.

Clients can also get to know you with documentation about your company. A simple folder with slips sheets detailing your staff, capabilities, tools and equipment, and past notable projects is a good start. For the more creative, develop a professional brochure. If you don’t have experience in graphics, contact your local college. There are always students willing to share their craft at a reasonable price to gain experience for their portfolios. A website is another area that can greatly add to your company’s credibility.

Don’t forget good old-fashioned networking either. A great way to meet new clients is through networking groups, such as the Chamber of Commerce, the Rotary Club, the Elks or Eagles, and other social organizations. Chances are you’ll meet someone that needs work done or knows of someone who does. Check out the Associated Builders and Contractors (www.abc.org) and the Associated General Contractors (www.agc.org) organizations. Both represent all specialties within the U.S. construction industry and are comprised primarily of firms that perform work in the industrial and commercial sectors of the industry.

Whether you choose cold calls, social clubs, industry organizations, or a combination approach, these methods will undoubtedly introduce you to potential clients. One word of caution: When you get the chance to bid, don’t expect to get a job right away. That doesn’t mean you should give up. One day your persistence should pay off. In this day and age of non-personal communication (think texting), it’s still important to put your face to your company’s name and be able to explain why someone should do business with you. It’s a lot easier for a client to say “no” to someone they don’t know. Make it your business to get to know them, and do everything in your power to become indispensable.

Next month, we’ll discuss knowing when to bid (or not to bid) a job based on job requirements, such as bonding or pre-approval, and the signals you receive from those who are soliciting a proposal from you. Stay tuned!

Candels is president of Candels Consulting, an electrical estimating consulting firm in Niantic, Conn. She can be reached at lacandels@candels-consulting.com.

 

Want to use this article? Click here for options!

© 2012 Penton Business Media, Inc.

---

Acceptable Use Policy blog comments powered by Disqus

Browse Back Issues Select an Issue EC&M Magazine | April 2012 March 2012 February 2012 January 2012 December 2011 November 2011 October 2011 September 2011 August 2011 July 2011 June 2011 May 2011 April 2011 March 2011 February 2011 January 2011 December 2010 November 2010 October 2010 September 2010 August 2010 July 2010 June 2010 May 2010 April 2010 March 2010 February 2010 January 2010 December 2009 November 2009 October 2009 September 2009 August 2009 July 2009 June 2009 May 2009 April 2009 March 2009 February 2009 January 1, 2009 December 2008 November 2008 October 1, 2008 September 2008 August 2008 July 2008 June 1, 2008 May 2008 April 2008 March 2008 February 2008 January 2008 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 September 2006 August 2006 July 2006 June 1, 2006 May 1, 2006 April 2006 March 1, 2006 February 2006 January 2006 December 2005 November 2005 October 2005 September 2005 August 2005 July 2005 June 2005 May 2005 April 2005 March 2005 February 2005 January 2005 December 2004 November 2004 October 2004 September 2004 August 2004 July 2004 June 2004 May 2004 April 2004 March 2004 February 1, 2004 January 1, 2004 December 1, 2003 November 1, 2003 October 1, 2003 September 1, 2003 August 1, 2003 July 1, 2003 June 1, 2003 May 1, 2003 April 1, 2003 March 1, 2003 February 1, 2003 January 1, 2003 December 1, 2002 November 1, 2002 October 1, 2002 September 1, 2002 August 1, 2002 July 1, 2002 June 1, 2002 May 1, 2002 April 1, 2002 March 1, 2002 February 1, 2002 January 1, 2002 December 1, 2001 November 1, 2001 October 1, 2001 September 1, 2001 August 1, 2001 July 1, 2001 June 1, 2001 May 1, 2001 April 1, 2001 March 1, 2001 February 1, 2001 February 1, 1995 January 1, 2001 December 1, 2000 November 1, 2000 October 1, 2000 September 1, 2000 August 1, 2000 July 1, 2000 June 1, 2000 May 1, 2000 April 1, 2000 March 1, 2000 February 1, 2000 January 1, 2000 December 1, 1999 November 1, 1999 October 1, 1999 September 1, 1999 August 1, 1999 July 1, 1999 June 1, 1999 May 1, 1999 April 1, 1999 March 1, 1999 February 1, 1999 January 1, 1999 December 1, 1998 November 1, 1998 October 1, 1998 September 1, 1998 August 1, 1998 July 1, 1998 June 1, 1998 May 1, 1998 April 1, 1998 March 1, 1998 February 1, 1998 January 1, 1998 December 1, 1997 November 1, 1997 December 1, 1996 November 1, 1996 October 1, 1996 September 1, 1996 August 1, 1996 July 1, 1996 June 1, 1996 May 1, 1996 April 1, 1996 March 1, 1996 February 1, 1996 January 1, 1996 December 1, 1995 November 30, 1995 November 1, 1995 October 1, 1995 September 1, 1995 August 1, 1995 July 1, 1995 June 1, 1995 May 1, 1995 April 1, 1995 March 1, 1995

browse e-newsletters