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Bidding Group Projects Are Well Worth the Headaches
Every time I used to get a lead from a condo association, church, multiple business owners or other group, I would get a bad chill or headache.
It seemed that there was always a lot more work and time involved in bidding and trying to get this type of group job than it was for a project for an individual or couple. And putting all of the pieces together was only the beginning.
So, early in my career I simply tried to avoid group remodeling projects. Today, however, I welcome them because I know that they can be very rewarding on several levels.
The First Hurdle: Finding the Decision Makers
Trying to qualify a group project always seemed difficult. The first hurdle I almost always encountered was not knowing who the real decision makers were. So, at your first meeting with a group, be sure to try to find out who among the group is the most influential and get from them the right information for the bidding process.
Have the Group Appoint a Point Person for You to Work With
Experience has taught me that you should handle a group project very much like a regular type of lead. At that first meeting, ask the group to appoint or elect an agent or representative for you to deal with. Be explicit that you will deal with no one else and that all instructions must come from that person.
In your presentation to the group, you must point this out and explain the importance of appointing a responsible individual so that the work flows smoothly and there is a single point of contact in case questions or problems arise.
Be sure to point out that such an arrangement will result in a much more efficient and timely project than one in which you had to wait and schedule group meetings for each question that came up. Mention that having an individual point of contact also will help keep the total price of the project lower.
Set Yourself Apart From Your Competition
Show them the type of insurance coverage you have ― property damage, liability, workman’s comp, etc. — and how it will protect them and their building. Ask if they will require a surety performance bond.
Finally, let the group know that you have done similar projects for groups and can furnish references. This will help you set yourself apart from your competition and let them know you are a professional.
Meet With Their Representative Before Submitting Your Bid
After that first meeting, get an appointment to meet with their representative to determine the scope of the project (and to really qualify the lead). Find out everything you need to know so you can decide whether or not you want to bid on the project. For example, do they have completed plans or drawings for the project ― sometimes, groups have designers develop plans and specifications beforehand ― or will you have to spend extra time estimating the job.
If you don’t want to bid the project, tell them why and refer the group to another contractor. You want to keep the process as professional as possible — and keep the door open for future work.
Making the Final Bid Presentation
If you decide to present a bid, plan the presentation so you can put yourself in the best possible light. Find out how much time you will be allowed, when other companies will be presenting their bids and what the order of presentations will be.
There is a lot involved, but as I mentioned, I like to do these types of projects because they are rewarding.
Each one of the owners or individuals involved in the group can and should be a referral. They all have relatives, friends and neighbors who can become potential jobs and sales. Another job or two adds to your gross and net profit. And isn’t that what it’s all about?
Doug Sutton, Sr., CGR, CAPS, president of Sutton Siding & Remodeling in Springfield, Ill., was the 2004 Remodelors™ Council chairman and is active in his local, state and national associations. He was the first remodeler to be elected president of the Greater Springfield Home Builders Association and president of the Home Builders Association of Illinois. Sutton is a past chairman of the NAHB National Representatives and was the first individual to be named National Representative of the Year twice. He is also an NAHB life director and served as chairman of the Remodelors™ Council in 1998. For more information, e-mail Sutton.
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