I’ve heard builders claim they take only 10% of the work that comes their way. Even when work is scarce, every builder’s challenge is selecting the good jobs and taking a pass on the losers.
“So how do I know a good job when I see it?” Here are some rules most successful builders would endorse.
Start by understanding what the owner needs and can pay for. That requires careful listening. Your prospect has a problem: a site that needs a building or a building that needs improvement. Listen as your prospect explains the problem – exactly what’s needed. Be especially alert to likes and dislikes. Prospects are usually more emphatic about what they like or don’t like than about what’s really needed. Make notes on expressed dislikes. Offer a solution that ignores a key dislike and you’ll get nowhere.
Qualifying Your Prospect
When your prospect has explained what’s
needed, begin qualifying your potential client. Is this work you want or a job you
should skip? Many projects will never be built. Don’t waste time estimating a project
and writing a contract for a job that’s never going to happen. Here are some clear
danger signals:
- The owner is undercapitalized or isn’t a good prospect for commercial lenders.
- Code or zoning restrictions make the work impractical.
- The owner isn’t being realistic about the cost or what can be built.
- The perceived need is based on assumptions that seem tenuous or transitory.
- The owner has been turned down by several builders.
- Your prospect may not have authority to contract for the project as conceived.
Within the first few minutes, your owner is likely to start asking questions: “What’s the best way to do this?” or “What do you think about . . .?” or “What would it cost to . . .?” or “Can you supply a list of references?” Respond to the questions, of course. But treat this as an opening to begin asking your own questions:
- “Have you talked to anyone about financing?” Obviously, finance is a key question. Every owner wants to improve their property. Not every owner can qualify for the financing needed to carry a project.
- “Do you have a budget in mind?” This is another key question, the beginning of price negotiations.
- “When would you like to see this job finished?” Identify unrealistic expectations as soon as possible.
- “Have you talked to any other builder [architect, engineer, or consultant] about this job?” If so, ask, “What did they say?”
- “Have you considered . . . ?” Try to identify zoning or code problems, potential issues with neighbors, design review committees, setback requirements or anything else that could halt the project.
- A clear danger signal: The owner isn’t being candid – doesn’t give believable answers to these questions.
If You Really Want That Job
- Be the most thorough, most complete, most diligent competitor. If you ask owners, especially private owners, why they selected a particular contractor, the most common response will be, “They gave me a good proposal.” In the eyes of an owner, a contractor who doesn’t respond promptly and completely is unlikely to complete the job as expected.
- Be friendly and likable, someone the owner would consider a good contact. No one wants to disappoint a friend.
- Provide something unique, an insight or option the owner didn’t consider. You’ve probably won the job if an owner likes one of your suggestions well enough to request the same feature from other contractors.
- Respond 100% to every concern. The essence of salesmanship is eliminating objections. If necessary, ask the question, “What do I have to do to get this job?
Part of every complete response is a professional-quality contract that complies in every way with state law. I recommend Construction Contract Writer. The trial version is free.
