"People buy from people they
understand and trust. It’s tempting to hide behind your
Smartphone and tablet, trying to squeeze more work out of
your day. Don’t do it when you are working on acquiring a
new project. The risk to your company’s profitability is too
great,” Jack Wilhelmi recently told attendees at the
Construction Education Institute® located at Mechanical
Contractors Association Chicago (MCA Chicago) headquarters.
“Write the proposal first and give your potential client the
opportunity to review it, asking him to fine tune it with
you. The construction industry is still a people-based
industry. Don’t forget that the estimating process is your
prime opportunity to build a relationship with a prospective
client so find a way to see him in person,” says Wilhelmi.
“Waiting to develop the proposal near the deadline means you
are risking that the receiver will find gaps in your
document, frustrating him as there will be no time to
clarify. From a client’s perspective, a well-planned
estimate delivered before the deadline says your
organization will execute the project on schedule as well.”
Isn’t technology important?
“Sure it is. You have to keep up on emerging technology.
Contractors are looking for accurate estimates that are
automated using 3D modeling, pricing that is instantaneous
and accurate, design software that’s linked to the model, as
well as billings generated from the model. They also expect
the model to reflect labor feedback and cost control,” says
Wilhelmi.
And if your head is spinning at this point, he suggests the
antidote is an acquisition process that is standardized.
“You need a checklist of information and tasks to be
performed the same way each time. Eliminate the chance for
costly mistakes. Estimating is the backbone of the entire
construction process. Give yourself the chance to define
what you are going to price, price it, perform the work and
measure it afterwards. True nuggets of competitive insight
come from understanding how the project performed against
the original estimate. Whether your organization is a small
shop or a multi-million dollar corporation, without a good
estimate you are flying blind.”
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Overwhelmed
by too much bid work?
“You need to have a standard process for deciding whether to
bid or not bid, too,” says Wilhelmi. Given the economy, it’s
tempting to load up on work to keep busy. “Understand where
your sweet spot is. Rank the customers and bid based on your
available resources and abilities. Keep your company safe by
dealing with customers that fit: not too big, not too small
and in your area of expertise. Don’t risk not being
available for a good customer.” He points out it may be much
more profitable to focus on doing a great job for the
current customer than adding one more project into the mix.
And if you don’t get the contract?
“Be sure to call. If you have established a relationship
during the bidding process, you are more likely to get
valuable feedback. You should also mine the unsuccessful
project for data that can be used on future projects,” says
Wilhelmi.
The MCA Chicago Construction
Education Institute® is the premier training facility in
Chicagoland for educating mechanical contractors. It leads
the green contracting movement by offering courses in
commercial building retro-fit and re-commissioning, as well
as LEED® and sustainable design. More than 75 courses are
available in classroom and online formats. Ranges of topics
include use of information technologies, safety and risk
control, estimating, project management, HVAC service, as
well as operations, supervisory and sales management. More
information is available at www.mca.org
About Jack Wilhelmi:
As president emeritus of The Waldinger Corporation, Jack
Wilhelmi has a passion for estimating. He has produced more
than $1.5 billion of mechanical proposals throughout his
career. He is past national president of Mechanical
Contractors Association of America (MCAA) and teaches high
performance estimating and project acquisition classes for
MCAA and local associations like MCA Chicago.
About MCA
Chicago:
Mechanical Contractors Association Chicago promotes the
highest caliber of worker at all levels of the union
mechanical contracting industry by advancing safety and
education. MCA Chicago represents 60 member companies who
work with the highly qualified pipefitters and service
technicians of Pipefitters Local Union 597. Together, they
install and service heating and air conditioning; and
install piping wherever it's needed – from power generation,
to oil refineries, to pharmaceuticals, and food processing
plants. For more information, visit www.mca.org.
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