The Role of Relationships in Construction Business Development

Some of the most valuable lessons I learned about marketing didn't come from working in marketing. They came from working in construction.

Early in my career, I spent five years managing marketing communications for Clark Construction. I worked with company executives, project managers and superintendents, spent time on jobsites, and met with owners, architects, engineers and specialty contractors.

What I came to understand was that construction is fundamentally a relationship business.

Contractors are hired because they can build. But the opportunity to build often begins much earlier—with reputation, trust, relationships and confidence in a company's ability to deliver.

That distinction stayed with me through the years I subsequently spent advising general and specialty contractors.

The Value of Established Relationships

Many successful contractors have built their businesses by consistently delivering quality work, honoring commitments and developing lasting relationships with clients and other industry participants.

Those relationships are valuable assets. They can lead to repeat business, referrals and opportunities that might never become available through a formal marketing effort.

For many contractors, that approach has worked exceptionally well. And there's no reason to abandon it.

But circumstances change.

A company may want to enter a new geographic market, pursue larger projects, establish relationships with different general contractors or expand into new types of work.

In those situations, the people who already know and trust the company may not be the same people who can help it reach its next objectives.

Establishing Credibility Beyond Existing Relationships

This is where marketing and business development can play a more deliberate role.

A contractor pursuing unfamiliar clients or markets needs to communicate more than its availability and capabilities. It needs to give prospective clients reasons to believe the company can deliver on its commitments.

That may involve demonstrating relevant project experience, explaining specialized capabilities, communicating what distinguishes the company from competitors or presenting its people and approach in ways that establish confidence.

The objective isn't to replace personal relationships with marketing activity. It's to help create the conditions in which new relationships can develop.

Marketing can introduce a company to prospective clients who don't yet know it. Business development can turn that initial awareness into conversations, relationships and, eventually, opportunities.

Both are most effective when they reinforce the reputation the contractor has earned through its work.

Marketing Should Support the Business

Not every contractor needs an extensive marketing program. The appropriate approach depends on the company's objectives, markets, competitive circumstances and existing relationships.

For some, strengthening communication with established clients may be the priority. For others, it may be developing a more convincing presentation of capabilities, identifying prospective clients or establishing a more consistent business-development process.

The important question isn't how much marketing the company should do.

It's what marketing and business-development efforts would help the company accomplish what it wants to achieve.

Good marketing can't make a contractor good at construction. But it can help a good contractor make sure the market understands why it's good.

Previous
Previous

When the Relationships That Built a Contractor Are No Longer Enough