We can argue about who's to blame for the state of the economy all day. Likewise, we can bemoan the fact that clients are having trouble getting credit and work is tough to come by.
But worrying and complaining won't do any good.
There is no quick fix, and for those of us who are in the construction industry for the long haul, this is an excellent time to take stock of where we are, how we got here and what we need to emphasize or change to remain solvent through this rough period and the next one.
The economy will shake itself out eventually. The question is, what will your company look like when the dust clears?
The worst strategy during times like these is to begin constructing "on the cheap."
When work is hard to come by, it's tempting to cut corners and bid low on projects. Don't kid yourself. This is never the answer.
Every client expects and deserves value. And often clients who are focused only on what is cheapest are more trouble than they're worth.
People might be hiring you to do the job for a cheap price. But when it comes down to it, they are not expecting you to build a cheap project. They'll be sure to let you know about it if you do, and they won't be shy about telling others that you do shoddy work.
Poor workmanship is virtually guaranteed when "cheap" is the central concern.
In order to eke out even a slight profit, you'll be forced to hire the least expensive and least qualified subcontractors. Unfortunately, your company's name is on the final product and it's you who will suffer the long-term consequences of a poor reputation.
Don't work with clients who won't allow you to make a profit. It is to your benefit to be selective about which clients you take on.
Good clients have several traits in common.
First, they understand that you need to make a fair profit. Second, they're a pleasure to work with. And third, if you do a good job for them, they will refer prospective clients to you.
These are the people your business depends on. Always do your best to recruit them and reward them with your full attention.
And never take on a project unless you can do it right. These poor economic times won't last forever, but a reputation for shoddy workmanship just might.
Larry Schlecht is president and chief executive officer of Schlecht Construction, a commercial and industrial general contractor with offices in Clark and Cowlitz counties that specializes in design-build construction. He can be contacted larry@schlecht.com or 360-636-0150.
