The Importance of Trust

Last month we discussed “What to Look for in a Contractor When Planning a New Project.” This month, we will explore that in a little more depth, emphasizing the importance of trust and how trust between all parties is essential throughout a successful project.
“Trust” is an integral component of the construction industry, not just the “buzzword” it has become in the business world. A construction project (small or mega-large) represents a considerable investment in time and money for any client project type.
  • Public or private sector.
  • TA tenant starting a new business.
  • Municipality constructing a bridge and a new eight-lane highway.
Every client makes an investment, signs a contract with a General Contractor (GC), and then needs to trust that the Contractor they selected will provide the expected outcome.

Construction is an industry where numerous companies (people) are thrust together in one location daily. They are there to meet a common goal (for someone else) and together to meet it efficiently, on time, and within budget. They are asked to do this quite often without ever having met each other, much less having worked together. A daunting ask. Would you have a deeper level of trust in your General Contractor going into the project, knowing that they have a strong relationship with the subcontractors because they have a proven track record of working together? There is an immense difference between a contractual relationship and a personal relationship.

A contractual relationship by itself does not require trust. Terms are defined, scopes of work are explained, and procedures to handle every situation are spelled out. As long as we both sign the document (and it is a well-written contract), trust doesn’t enter the equation. On the other hand, a personal relationship is based on trust and, in conjunction with a contract, becomes a formula for success.

A relationship based on trust doesn’t need a contract except in rare circumstances. The contract becomes a “fallback” document if something goes wrong and the two parties cannot agree on a solution.
Let’s explore some qualities that foster trust and the impact various levels of that trust have on a project’s outcome. When subcontractors know what to expect from a General Contractor, and the General Contractor knows what to expect from subcontractors, there is a mutual benefit to the client and all personnel involved. The project will be completed quicker, and each day brings a higher level of productivity and levels of collaboration. The more communication and collaboration between subcontractors, the fewer mistakes are made. Less work needs to be re-done ($) because one subcontractor wasn’t thinking about where the other subcontractor’s work overlaps his. For example, if the electrician is not communicating with the cabinet installer, we may wind up with a receptacle covered by a backsplash.
The “lowest bidder” comes into a job with a lower level of trust before they even start a project, as the GC is wondering why the bid was so low. The Superintendent is at a distinct disadvantage because they don’t know who they are working with, their skill level, communication skills, or how they will interact with the other subcontractors.
The subcontractor has little trust in this Superintendent because in the last project he worked on, the Superintendent lied to him, belittled him, etc., so, in his mind, all Superintendents are the same. Building a relationship takes time.

Consistency is a quality of trust that seems academic but unfortunately not easily found. If a person always does what they say they are going to do, trust increases. Trust builds teamwork.

Familiarity is a key to building trust and teamwork. When subcontractors work together on multiple projects, relationships are formed and strengthened as the goals become equal. Helping one another is easy when there is trust and a team atmosphere. Multiple perspectives amongst trusting peers bring faster solutions and require less money and less time.

One of the difficulties found in Design-Bid-Build projects is that the collaboration between GC, Subcontractors, Clients, and designers rarely exists and doesn’t have an opportunity to grow, thereby reducing the level of trust (i.e., between subcontractors and designers). If there were direct contact, such as in Integrated Project Delivery, the trust between the Architect and the subcontractors is being formed from the start, and the collaboration flows through the entire project, not just when there is a problem.

When there is a centralized data system, and everyone has access to the same information simultaneously, there is less room for finger-pointing. Every member of the team has to take equal responsibility.

The chances of conflicting sources of information are reduced, and members of the team trust that everyone has the most recent data.

Trust requires fostering an atmosphere of personal responsibility and mutual respect. When I make an error, it is essential to own it and not blame someone else. Everyone involved now knows that integrity is present. Building a relationship in the field (external trust) also requires trust inside (internal trust).
When subcontractors witness the relationship between the field Superintendent and their office and see that information flows freely, timely, and accurately the subcontractors then know they can trust the Superintendent because of how others trust him/her.
And finally, as customers become more committed to your organization, their behavior progresses from recommending your services to others and resisting competitor’s approaches all the way to paying a premium to do business with you. Taking a risk on a newcomer becomes less attractive. Customers know the outcome to expect when they work with you. This will create more business. With repeat work, you develop a deeper relationship, and through that relationship, you build even more trust, making the work more enjoyable.
And as we know, if you enjoy what you do, it isn’t work!
In future issues, we will discuss why greater trust leads to better performance on every project.

Tri-Bay Takes Pride in Going the Extra Mile

Is doing the right thing the same as going the extra mile? Many construction companies pride themselves on “doing the right thing” during construction. Tri-Bay Construction will go the extra mile from beginning to end. We take experiences from previous projects where we’ve worked with suppliers and subcontractors and evaluate for continuous ongoing improvement.
We take into account all the pieces that go into a project, such as:
  • Evaluating where scheduling can be improved upon
  • Clarifying ambiguities on plans and other documents (i.e., surveys)
  • Assessing the effects construction may have on neighboring businesses or residences
  • Best practices to effectively create a collaborative environment inclusive of Owners, tenants, landlords, subcontractors, and designers. And considering the relationships with local officials before getting to the construction phase of a project.
Cleaning up after a specific operation is the standard operating procedure for most construction companies. Enhanced preparation before the project to minimize clean-up and operate more efficiently and safely is what we do.
This small amount of extra time beforehand results in a better, more efficient operation, less chance for collateral damage, and most importantly, a safer work environment. Best of all, it reduces costs in the long run by eliminating repairs and doing things a second and third time.

When you demand this type of preparation and efficiency, subcontractors want to work on our projects and leave owners knowing without question that we value them and their project. This approach results in a more collaborative and cohesive team effort on every project we do.

There is typically a warranty period of one year following the completion of your project.
The seemingly minor extra efforts, inclusiveness of field workers in daily operations and decisions, and collaborative teamwork between all trades set us apart from many typical construction companies.
You should be asking questions like:
  • Where does your construction company go after one year?
  • Can you call on them to solve problems that arise after the warranty expires?
  • Have they provided you with a maintenance schedule for your new building or the equipment you now own?
  • Do they show you how it operates or provide you with an instruction manual?
  • Will they help you find solutions or tell you how much it will cost to involve them in a solution?
By focusing on details from the start (pre-construction), changes become less frequent and less costly. Identifying challenges or gaps early on can make a project smoother in the construction process.
Getting it right the first time saves time and money for all involved. One glitch or hiccup has a trickle-down effect that can quickly snowball into significant delays.

Transparency between all parties allows for last-minute adjustments that have a less negligible impact on the overall project. There cannot be any “islands” on a construction project. Every component will affect other parts of the project.

Tri-Bay Construction goes the extra mile for Owners, designers, and subcontractors alike. That is why we have repeat clients, referrals from satisfied owners and designers, and subcontractors who want to work with us. The extra mile we take in our work results in a victory for all.

Construction Pre-planning is Vital for Success

Last month we discussed the qualities to look for in a Contractor. This month we will explore some of the pre-planning you can do before you even get to permitting and construction. Whether you are about to lease a space for an existing/new business or purchasing land to construct a new building, there are many things you should do in advance.

Do not rely solely on the “experts” or assume that these upfront items have been taken care of before the project launch. Keep the old adage in mind that “failing to plan is a plan to fail.” This saying especially rings true in the construction industry. Any gaps can become a costly delay.

Define the scope with a contractor, including how you want the space or the building to perform. The result will always turn out better than if you hand a contractor a set of plans and say, “Can you build this?”; How fast? How much? Defining the scope and performance often will change the cost for the better.

Walking through this pre-construction process with a Contractor is equal to interviewing to find the right fit. You should identify the level of risk the project may have, such as delay points, permitting procedures, and design decisions that will affect the overall budget, material specifications, and more. Walking through this process can determine whether the project is viable at all.
To follow are some of the crucial elements that make up a successful project:
  • Clearly define goals and deadlines for the Owner and Design & Construction Teams: Set realistic cost projections, confirm scheduling, and establish clear communication lines early to prevent misunderstandings.
  • Collaborative scheduling: This critical step requires all team members to create a realistic schedule for the project, from design to project turnover.
  • Sustainable Building: Know the benchmarks that make a building or a space considered “Green.” Having a clear understanding of the costs associated with green building methods and materials will eliminate surprises during construction and may even alter the performance goals before the project begins.
  • Permitting and Jurisdictional idiosyncrasies can often delay the review process: Understanding the local codes and ordinances by meeting with jurisdictional officials before the submittal process may shave valuable days from the overall schedule. Otherwise, poor communication can derail a plan before it gets started. Gaining clear direction helps alleviate items easily overlooked if unfamiliar with the project’s jurisdiction location.
  • Accurate budgeting and expense tracking plan: The team can accomplish this with the early selection of finish materials, so costs are known before construction begins—brainstorm to uncover the hidden fees that are bound to arise and can often be budget busters.
There are many more components that makeup Pre—Construction Services and Planning. We will continue to discuss the benefits of Pre-Construction planning and will then follow that with the types of Project Delivery available and their pros and cons.

The Importance of a Cohesive Subcontractor Base

In today’s construction industry, a contract is often awarded based on the lowest cost submitted, not taking any crucial variables and pieces into account.

Not only does this process continue to cost owners more in the long run, but they are also frustrated throughout the project (often right from the beginning), and the relationship between you and the General Contractor becomes adversarial with conflict through the end of the project.

Often, the contractor has never worked with the lowest bidders in each trade, making it difficult to be productive and provide quality work.

Often, a project is “sent out to bid” by an Owner, Architect, or Construction Manager to multiple General Contractors who, in turn, solicit bids from subcontractors with the skills required to perform the job correctly.

The result is often an amalgam of quotes that often bear no relationship to each other and have made zero connection with the other trades.

It is almost impossible to know if you are comparing apples to apples. This results in:
  • multiple change orders,
  • conflicts with the GC and the other trades,
  • unnecessary delays,
  • and bad feelings beyond repair.
Every subcontractor’s work affects the next subcontractor’s work from the project launch through completion.

We have long-term relationships with the major subcontractors required for every project. The result for you, the Owner, is a cohesive, communicative team of people who have worked together numerous times. They have successfully collaborated because they are aware of the benefits and have the common goal of getting your project done right. “Being on the job first” does not make for the best sequencing of a productive, efficient schedule that produces quality work.

Our subcontractors know what to expect from our Superintendents, they know what to expect from one another, and we know what we are getting when we contract with them, giving you, the owner, the best value for your dollar.

The above is especially important in our current labor market, which is short on skilled tradespeople. Knowing you have experienced skilled tradespeople on your project who have worked with your GC on multiple projects will give you peace of mind and a feeling of confidence.
This benefit makes it well worth the few extra dollars it may have cost you at the project’s conception.
The lowest cost before construction will most likely cost more than the highest cost by the end of the project.
We value and depend upon our long-term relationships with subcontractors, and they feel the same. You can rely on that fact for a smoother, less frustrating, and better-quality project. We will continue our discussion of a solid subcontracting base, its benefits to you, and the importance of pre-construction service.

How to Vet Potential Contractors

A good contractor is properly insured.

Now that you have established that your contractor has an active Certified State of Florida issued License and no public complaints, does your contractor also have General Liability and Worker’s Compensation insurance? No matter the size of the project or of their company, any contractor or subcontractor that works on your project should have Worker’s Compensation insurance. While “exemptions” are allowed in certain circumstances, it is never a good idea to allow someone to work on your project without this very crucial insurance. If that person is injured on your project, you can be sued. Just the thought of a potential legal battle and/or an injured worker who can no longer earn a living is a good reason to make sure all contractors and subcontractors on your project carry worker’s compensation insurance.

Is it easy to understand your contractor?

Is he/she communicating all of the processes clearly? After your initial consultation, do you know the next steps for both you and the contractor? And, when should each happen? IS your contractor using “construction-speak” or terms you understand? Make sure it’s the latter.

Knowledge of the entire process.

Does your potential contractor explain the entire process to you, including potential costs from site selection, zoning, design, permitting, construction, occupancy, and maintenance of your newly renovated or new building?

A full-service, knowledgeable, and customer service-oriented contractor will explain all of the above based on their experience, combined with the information you provide, in a language you can clearly understand. It is important to the entire Tri-Bay team to ensure you are never in the dark about what to expect.

Do they have the required experience?

There are a multitude of Construction types defined by the Florida Building Code. Each building is unique. Does your contractor have experience in the type of construction you are asking for? For instance, if your contractor has never worked on a radiology facility, do you want them to learn or “practice” on your facility with your multi-million-dollar equipment? Make sure the contractor is asking about your vision and how you need the building to perform.

We will continue to explore “What questions to ask” in future issues. We will also familiarize you with the many steps required for a successful construction project before one gets to the project’s actual construction phase, including the different types of contracts available to you.