Align Builders & Clients Using a Maturity Model

Engaging the perfect builder for your client’s project can often feel like part science, part social experiment. Here’s what to do.

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Sometimes, tried and true builders aren’t the perfect fit, while new faces deliver more than you anticipated.

To create some rhyme and reason to builder selection for client projects, we’ve developed a model that explores the stages of a builder’s business maturity and how you can harness that to better support your clients.

We break a builder’s business maturity into four stages:

  1. The Lean, Green Building Machine

Having become registered in the last few years, this younger builder is still working onsite with the help of a couple of loyal employees/mates they used to work with.

Advantages

  • Keen and receptive to constructive feedback
  • Open to refining their work methods to better suit your requirements
  • Cost competitive – ideal for clients on tight budgets

Disadvantages

  • They’re still making rookie mistakes that are a natural part of their learning curve
  • Need for more supervision and support through the build from you
  • Paperwork may be a bit slow (because they’re most likely doing it at night when they get home)

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2. Growth/Transition

This builder is now looking to grow their business and become more sophisticated. The builders operating at this stage can be highly variable in their approaches (and success). Typically, the builder floats across a few projects and has 2 – 5 trusted people they rely heavily upon.

Advantages

  • These builders have already learnt some lessons and approach the process with the benefit of that experience
  • Pricing can still be highly competitive but requires solid due diligence
  • Choosing the right builder can deliver a great project for clients

Disadvantages

  • Builders who are not systemising their business with online project management tools or business procedures often experience very painful growth
  • Due to the increased scale and complexity of their business, cashflow can become an issue.
  • Given they’re a hungry, growing business, they may take on projects that are not a good fit for their company.

3. Maturity

This builder has managed to grow because they’ve implemented good business systems, project management software and have possibly even undergone some business training or coaching to develop their approach.  They have 2-7 people they rely upon. Each has a defined role.

Advantages

  • This builder has dealt with most issues that pop up during build and has the ability to solve these issues with relative ease
  • Their system delivers projects. That is, if their system is sound, your project should be in good hands.
  • You would expect the business to be relatively stable, reducing financial and project risk for your clients.

Disadvantages

  • This builder (not unreasonably) will be expensive. They’ve consolidated all their experiences, learnings, systems, risk management, insurances – and more – into your client’s construction estimate.
  • These builders will be selective about what projects they undertake and who they work with.
  • They may not be a flexible/forgiving as less mature builders. To manage their risks, they like to do things their way.

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4. Grumpy Grandpa

This builder works with a small group of referrers and is not looking for new work. They’re happy to keep their team small and are planning for retirement.

Advantages

  • They’ve seen it all and won’t be to phased by anything that can happen on a building site.
  • They’ll have a level-headed approach that supports a relaxed, but professional culture.
  • They have achieved financial stability and therefore are low risk

Disadvantages

  • They rarely want new work so they’re difficult to engage
  • Most likely, they just want to work on projects with which they have an affinity
  • Little interest in new approaches from architects or designers.

So, to support your clients, consider what builder’s attributes are required for your next project. Matching builders to clients, and the projects, helps you manage expectations and be project-ready.

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Author Richard Armstrong is a project manager & former registered builder who specialises residential construction pricing. With post-grad property qualifications and over 15 years’ design & construct experience, he is the Founding Director of ProCalc – Professional Construction Estimator. Free trial at www.procalc.com.au.

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