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The Power of Relationships

Bret Necessary is the business development lead at our MW Builders office in Temple, TX. Bret is responsible for researching and finding new opportunities for partnerships and projects to further grow the company.

Relationships in the construction industry are not only important — they are a necessity. The nature of selecting a general contractor for a construction project has transformed over time. In the past, most owners awarded projects to the lowest bidder, sometimes referred to as “hard bid.” Through time, the low bid process has been supplemented by additional qualifying steps, and, in some cases, replaced by other project delivery methods such as construction management and design-build.

As more and more of the projects moved away from the hard bid method into qualifications-based selections, other project delivery methods, or even negotiations with a lone contractor, the relationship aspect of the industry advanced to the forefront. General contractors could no longer wait for bid advertisements to hear about projects, because, typically at this stage, either a list of qualified contractors or a general contractor/construction manager has already been established. Consequently, construction companies must now be involved in the early stages of a project to be considered for the construction phase. It is no longer your bid number that stands out — it is your relationships and qualifications to get the job done.

In addition to “being in the know” about upcoming projects, relationships are crucial to help land projects as well. Going after a project with a client with which we have an established relationship as opposed to first time client dramatically increases the success rate of being considered for a project. People tend to do business with those that they know and trust. Trust is earned through working with each other on previous projects. The construction industry lends itself to be more trust driven than others due to the nature of the business. Owners and design professionals rely heavily on the performance of the contractors, as the owner has to operate and maintain the facility throughout its life while the design team must maintain their professional reputation through a successful project.

Maintaining our current relationships and cultivating new ones has become easier after the launch of our CRM system, Cosential. This tool has proven to be an excellent way to track and maintain our industry relationships, because up-to-date information regarding projects, bid opportunities, and any correspondence with MW Builders contacts are shared through the web-based format by all in-house users. This allows us to see contact history to be sure we are providing clients what they need from us, whether we have an active project together at the time or not. One of the best features of Cosential is the capability of designating an established contact to receive MW Builders periodic mail outs such as Strong Foundation and Year in Review (annual report). This feature ensures that each designated contact is receiving information about MW Builders throughout the year.

MW Builders is focused on growth while maintaining and fostering relationships with repeat and new clients alike. Without sustained relationships business goals, company growth could not be achieved in the construction industry today. Pure and simple, the industry is driven by relationships, and our shared success is a testament of our commitment to our partners and to keeping the trust we have earned by delivering an unparalleled construction experience project after project.