In the construction industry, trust and relationships are paramount. They form the foundational elements of success and the bedrock of business growth. However, in an incredibly fast-paced industry, strengthening key relationships while trying to expand your network is always challenging.
In this article, I’ll explore the pillars of relationship management in the construction industry, run through some tips on how to strengthen relationships, and take a look at the role a construction-specific Customer Relationship Management (CRM) system plays in doing all of that successfully and strategically.
The Cornerstones of Construction Relationship Management: Communication & Trust
Too often in the history of the construction industry, there's been a tendency towards conflicting relationships rather than cooperative ones. Read more about why this happens in this article from our partners at AutodeskⒸ. Clear communication and the trust that comes from it serve as the binding forces for clients, vendors, and project partners alike. These elements ensure the establishment of a collaborative environment that will strengthen the entire project team.
Over time, a reputation for trustworthiness will attract top-tier vendors, improve project partner loyalty, and ultimately lead to more favorable contract negotiations that result in repeat business and longevity. Trust, therefore, is not just a nice-to-have, but a must-have in the construction industry. It should be your identity.
5 Top Tips for Ensuring You’re Building Trusting Relationships
- Embrace Personalized Relationship-Building and Be Genuine.
Personalized interactions are crucial. Approach business development with transparency and authenticity. Really get to know your clients, vendors, and project partners. Strive to learn more about their lives outside of their profession—their interests, their families, what school they went to (for all you know, they might be fellow alumnus!). Look for any opportunity to connect on a personal level. Authentically-based relationships that develop over time will open doors to the highest quality projects. Avoid being transactional.
- Invest in Transparent and Authentic Communication.
Being open and genuine in your communications strengthens trust, particularly when you’re actively engaged on a project. Even when you're not directly involved, keeping clients, vendors, and project partners informed about industry developments is an excellent way to demonstrate that you value their business and keep their interests top of mind. In one of our webinars last year, sharing market trends was highlighted by our developer panel as a key factor in how contractors can stay top of mind with them.
- Strengthen Relationships Throughout the Project Lifecycle.
Focus on building strong relationships at every phase of the project lifecycle. Encourage your assigned project team to have the same mindset. Treat each project directory as its own ecosystem and network strengthening opportunity. It is an amazing way to create strong relationships that last a long time.
Pro Tip: Make an effort with project social events. Project teams can get incredibly frustrated with one another and it’s important to take time to step out of that environment and connect with your partners on a personal level. Some of the best memories are social events with the full project team.
- Enhance Project Partner and Client Loyalty.
Show your project partners and clients that you value their collaboration. Host bi-annual or annual events, invite their families, and get them involved.
- Facilitate Intros between Trustworthy Partners.
Utilize your network by introducing your reliable partners to each other and your clients. Act as an extension to their team (you may have seen my recent post on this). Show that you care about their business and them getting ahead. This compounds in a big way.
How a Construction CRM Can Support the Building and Maintaining of Relationships
A construction CRM plays a particularly crucial role in building and maintaining relationships during the following phases of the construction project lifecycle:
Pre-Construction & Planning Phase
Client Acquisition & Pursuit Management
- Centralized Information: Manage leads, client inquiries, and bid opportunities in a centralized location, ensuring that no person or potential project is overlooked.
- Proposal Generation: Efficiently create and manage the RFP and SOQ development process to deliver high-quality proposals to your clients, ensuring their confidence in your capabilities.
- Client Relationship Management: Establish and maintain relationships with potential clients, ensuring a strong foundation for future interactions.
Communication Command Center
- Real-Time Communication: Incorporating real-time communication tools within the platform allows for immediate updates and seamless information sharing. This reduces delays and ensures all parties are on the same page, enhancing project pursuit efficiency.
- Segmentation and Targeted Interaction: Construction CRMs allow for the segmentation of contacts, promoting targeted and effective communication and collaboration.
Post-Construction Phase
Client Follow-Up and Satisfaction
- Feedback Mechanisms & Data-Driven Insights: Construction CRMs collect client feedback and help you address any concerns, ensuring high levels of client satisfaction and fostering long-term relationships. This ability to aggregate client feedback data also provides insight to leverage when making strategic big-picture decisions for future pursuits.
Ongoing Relationship Management
- Historical Data: Construction CRMs provide access to historical project data and documentation, which can be valuable for website updates, company reporting, RFP responses, and interview preparation. Additionally, consider the people side of this: What construction firm wouldn't want clarity over who has worked on which projects or an entire historical database of every partner and client involved? This information is crucial!
- Continued Engagement: Construction CRMs maintain relationships with clients, vendors, and project partners for future projects, leveraging past successes to secure new opportunities.
Construction Relationship Management: The New “CRM”
When you hear us say 'Construction Relationship Management', it’s not just a buzzword play on an acronym. It’s our way of emphasizing how incredibly important building trust and relationships is in the construction industry - at every level.
By investing time and tools in the right process, construction businesses can proactively transform the way they approach relationship development and create new opportunities.
The time to invest in relationship building is now! See how ProjectMark CRM can help you do that by requesting a free demo!
