Your relationship with your contractors can have a significant impact on your business. Around 30%-40% of your business activity depends on the construction process. Having good relations can make it a smooth journey to deal with complex renovation projects. It can ensure that top quality work is delivered to your clients. It also means those same contractors will be available for every project you undertake.
Let’s be honest.
Real estate investors are searching for the top-quality work, lowest cost, and shortest turnaround time possible. Being an investor, your job is to find & finance deals. You do not have to know everything about the construction work and this is where you need the help of a professional contractor.
How to Develop a Working Relationship with Your Contractor?
A successful relationship is born with the alignment of three critical activities:
In a weak business relationship, both parties are blaming each other for inconsistent communication, misaligned views about quality and missed deadlines. When you break down the issue, you can see, it all comes down to 3 main concerns which have been stated earlier.
Tips for Developing a Rewarding Relationship
Align Your Goals
Communication beings before you lift a single tool. It starts before you have even started the project. The contractor comes in, and you have a conversation with each other. This is the best time to plan everything. Discuss every aspect of the project. Share your definition of quality and your vision about the final product.
Describe how you want to complete the project. Be firm about the timeline. Arrange a method to pay the contractor promptly. This should be discussed upfront as to how the contractors want to get paid.
It has often been said, but a precise & brief project description can save you countless hours and hundreds of dollars. It also creates a business relationship that can last for years.
It is important to find ‘real players’ for your project, but it is also equally important to be a great team player. Planning and organizing are the top priorities for professional contractors and investors. The contractor’s job is to deliver the quality product at the discussed time. It is your job to give access to resources and the information to help them produce the best work.
Show Little Acts of Kindness
It is safe to assume that contractors are working because you are paying them good money. However, it is often your professionalism and courtesy that make them work hard for your business.
You do not have to do this, but a little act of kindness goes a long way.
Start with payments. Make sure to pay your contractors on the discussed timeline. Do not make them ask twice about the fee.
Remember social occasions. You are not the employer, and your contractors are not entitled to employee benefits but sending a small Christmas gift shows your appreciation. Giving a new year bonus indicates that you remember the contractor and the value he is bringing to your project.
Similarly, it does not hurt to order snacks and coffee for everyone on the team. If you are visiting the site, in the morning, do not forget to order breakfast for all people. After a challenging day, you can arrange a pizza party or whatever that may seem appropriate on the day.
The goal is to create relationships that will make each project a rewarding experience for everyone who is involved.