Market Approach Posted on October 11, 2010 by Matt Stevens

Market Approach

The ultimate work acquisition process delivers project opportunities to the contractor from active clients. There is little or no marketing. Word of mouth and repeat business take the place of a business development effort. In all, your construction operations keeps the clients satisfied. The company is the trusted source for contracting services.
This is especially valuable in down economic times (91-92, 2008-2010) or when there is a great industry change (PPP, LEED, IPD, Design Build, BIM etc). Clients go to the trusted source as their first choice. Contrast this with the newly formed construction firm who does not have a body of work. They have not been though the tempering fire of crisis. Sometimes, they have said “yes, we can do that” only to run back to their office trying to figure out, “how, can we do it”. Marriages to a contractor are easy but, divorces from that contractor midway through the project are difficult.
Sophisticated and many times wealthy clients know this. They are cautious when they are going through a negotiation or bid process. They know that are making a promise to their audience in the design and building process. (Board of directors, shareholders, investors, spouse etc.) They certainly don’t want to be embarrassed. They know excuses only go so far then, they themselves are held accountable.
In the public sector, the market approach is defined. A low, qualified bid is the winning bid. However, hard bid contractors are helped by high qualification standards. That is licensing, certifications, bonding capacity and the like assist the contractor to compete against a shorter list and more capable group of construction firms.
All is all, the market(s) you have chosen in helps determine what your work acquisition hurdles may be – high or low. A good strategic plan may include how to move those hurdles higher. This is fair to all. Contractors who have shown a seriousness and carefulness about the business should be the one building our largest and critical infrastructure and shelter