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Building Relationships, Not Just Projects

By RUSTY NORRIS
I am pleased to represent Joe Funk Construction Engineers (JFCE) and our association in writing this column reserved for a QUOIN contractor. With this issue, we are beginning the third year since the first column appeared in your magazine. The idea for a quarterly contractor column originated from a long-standing relationship between AGC and BOMA. The relationship between our two organizations has only strengthened as a result of this collaborative effort.
And it is the importance of relationships in our industry and what goes into building relationships that I want to address. With so many people agreeing about the importance of relationships, why is it that only a handful of companies seems to be focusing on relationship-building as a key business strategy or training priority? It appears that most people underestimate the skills and knowledge needed to effectively build relationships. They also do not realize it can cost a company six to eight times more to win a new client as opposed to keeping an existing client. Plus building relationships takes time and an incredible amount of energy and patience.
In addition to today's customer requiring on time, within budget, quality work, a customer also cares about the "experience" they have when they do business with you. People who do business together want to know each other, and they want to know that they can depend upon the other to follow through on what they say they will do. The ability to meet and exceed customer expectations and build stronger relationships is essential to withstanding competitors and changing market conditions.
Having recently celebrated 46 years in business, our firm knows that a company's staying power is directly linked to its ability to build lasting relationships. We are proud of the projects and the many relationships we have built. We also know that when it comes to building stronger relationships, JFCE can and must do more.
For us, building relationships seems easier once a project gets under way. The task becomes more challenging when we try to establish relationships before a project starts and when we need to maintain the relationship after a project is completed. At JFCE, the combination of having a relationship-oriented marketing person on board and making long-term relationships a company priority is helping to make a difference.
At JFCE, we strongly believe the foundation of a good relationship is built on trust-and trust usually is earned as the relationship progresses. Opportunities will present themselves before, during, and after the completion of a project that we use to build this trust. For example, when JFCE was building a religious school recently, the owner had property damage insurance, and we had insurance included in the estimate. Since we allocated $15,000 in the initial bid for insurance, we took it upon ourselves to return this amount to the owner.
Some of the ways each of us can go about building stronger relationships include:

  • Following through on promises
  • Being able to meet people's expectations
  • Treating others fairly
  • Listening with an open mind
  • Standing behind what we do
  • Being dependable
  • Asking for feedback
  • Being able to anticipate problems
  • Stepping up to the plate and taking responsibility when there is a problem
  • Knowing what is important to the other person and making sure you have asked them for this input
  • Being yourself
  • Being able to convey your sincerity in having someone else's best interest at heart
  • Making sure the value received by one party equals the value delivered by the other party insuring "reciprocity"
  • Making others feel comfortable even with different personality types involved
  • Knowing what is important to someone and asking for this input

At JFCE, we are always striving to build long-term relationships with owners, developers, brokers, architects, specialty contractors, vendors, and suppliers as well as with our employees. And we continue to learn new ways to make this happen so the relationship is more satisfying and enjoyable for all parties involved.
As a result of the construction industry changing over the years, much more is required now on the part of the contractor to understand the needs and preferences of an owner, the architect, and the specialty contractors who are on the team. Staying "close to the customers" you work with to achieve a higher level of "customer intimacy" can help build relationships and repeat work opportunities. In some instances, JFCE has become painfully aware of the need to stay in touch, serving as a powerful wake up call for making ongoing relationship building a priority.
For all of us in the real estate community, building a highly loyal customer base cannot be done as an add-on or something nice-to-have. It takes careful planning, skill, and commitment. Client loyalty is one of the key determinants of long-term business growth and viability-building client relationships one person at a time is what leads to loyalty. The true value of client relationships is not measured by the number of clients, nor by their prestige, but by how "deep" the relationship is, its duration with the organization, and the extent of its influence, i.e., referrals. Recurring opportunities for people coming together to meet mutual and multiple needs over a long period of time is what contributes to enhanced value of any company.
A few questions we continue to ask ourselves at JFCE that you may want to consider: What are you and your company doing each day to build stronger relationships? What does building stronger relationships mean to you and your company? Who is responsible for building relationships at your company? How does the thinking about relationships at your company get translated into specific strategies and actions?
Relationships have to do with delivering value, knowing what is important, establishing trust, and creating a safe and comfortable place where people can interact honestly with each other. Sounds easy enough. But we know it takes a lot of hard work.
At QUOIN, building relationships means helping members know one another as we work toward "building the best contractor community in the world." It also means helping members build relationships throughout the industry and with local real estate and business leaders. Dorothy Shaw, executive vice president of QUOIN says, "As QUOIN contractors work hard to differentiate themselves from other contractors, the ability to excel in building lasting relationships is just one of the ways they can do this!"

Rusty Norris is executive vice president of Joe Funk Construction Engineers (JFCE), a Dallas-based general contractor specializing in ground up and building renovations in both the private and public sector. The firm is well known for its expertise in handling complex construction assignments.

QUOIN (formerly Dallas/East Texas AGC and Fort Worth AGC) is the local trade association whose members include the top 220 commercial contractors in North and East Texas and approximately 1,300 service and supplier companies supporting our industry. The association's website is www.quoin.org.

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