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Gold-Fringed Business Cards?

I spend a large portion of my days managing construction projects. It is my job to hire lots of contractors and subcontractors. Know what my number one criteria is?

Gold-fringed business cards?

Nope. It’s plain old honesty.

More on that later. First, let’s discuss a few things I don’t care so much about.

Price. I don’t always take the low bid. I believe you get what you pay for, and expect to pay a fair price for a job well done. Certainly, I appreciate a bargain. But in the world of construction, any contractor worth his salt will be sure to include a little profit in his bid. No profit, no prosperity. No prosperity, go out of business. Faithful clients want you to stay in business. They understand the concept of profit.

I might note, however, that I am very impressed with a clever contractor who figures out cheaper, innovative ways of doing things. I see nothing wrong with discussing inventive methods of construction prior to bid day.

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Fancy Trucks, Cars, Business Cards, etc. A contractor’s material possessions can speak volumes. For example, if you come to my job in a Hummer, I’ll act impressed, but will make a mental note that you are probably making too much money — at my cost. I drive a 97 Jeep Cherokee with over 100,000 miles. Even though I may have a nicer car in my garage, no client of mine will ever see it. I want to portray an image of middle class — not too poor, not too rich. I once knew a contractor who actually used gold-fringed business cards. When I asked him why, he said he was trying to appeal to high-end clients. I didn’t bother telling him most high-end clients got that way by being cheap.

On a related note, you don’t want to portray poverty either. If all your equipment and vehicles are dilapidated beaters, clients may think they’re a reflection of your work quality.

Slick Talking. It’s great if you can talk the talk. But you’d better deliver. I have little tolerance for slick talkers who don’t walk the walk. You are far better off under-promising and over-delivering. Let your workmanship and other satisfied clients do your talking.

Back to honesty. How honest are you? Is a little white lie every now and then okay?

Not in business. Any savvy client who catches you in even the smallest lie will forever wonder whether you’re hiding bigger ones. Here are a few of my "honesty" pet peeves:

  • Change Orders. Since there are no perfect plans, change orders are inevitable. I have no problem paying a fair price for a change. However, any contractor who tries to skin me on a change order will do it only once. I consider it bad policy to bid low to get work, then make money on over-priced change orders. It smacks of dishonesty. If this is your reputation, please don’t bid my job.
  • Dummying T&M Timecards. This one is obvious, but is probably the one most abused. Many owners are not as ignorant as they seem. They have a feel for how long things should take. I suggest offering to go over timecards and material slips with owners. Make them cozy with your integrity.
  • Charging for Mistakes. Mistakes triple the cost of things. If I have a time and materials or cost-plus contract with you, and you botch something, please don’t charge me for the botch or the fix.
  • Charging for Lazy or Sluggish Workers. I work hard, have all my life. I expect anyone on my job, from superintendents to laborers, to work hard too. If you run out of things to do, grab a broom. There’s always something needing attention.

Much of the hiring I do is sole source. I literally give contracts to those companies I trust. No one else even gets a chance. It should be every contractor’s goal to be on lists like these. Of course the only way to get there and stay there is…. honesty. Still the best policy.

Tim K. Garrison, P.E., M.S.C.E., of ConstructionCalc.com™ has authored a book and several short courses, and lectures on topics relevant to builders. Reach Tim at timg@constructioncalc.com.

The views expressed in this article represent the personal views, statements and opinions of the author and do not necessarily represent the views, statements, opinions or policies of the National Association of Home Builders. NAHB does not necessarily endorse any of the views expressed by the author and NAHB is not responsible for any direct or indirect consequences arising out of the views expressed in this article.

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