Does your construction company have a good reputation

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Why a good reputation is essential for contractors 

​A construction company’s reputation is important. Contractors often rely on a good reputation to find their next projects. Indeed a poor reputation may preclude a construction company getting a project. If a construction company doesn’t have a good reputation they won’t be invited to price projects. Even when they do have the opportunity to price a project the client might disregard the company’s price, even when it’s the lowest, rather paying more to employ a contractor without a tarnished reputation.

A good reputation is essential to procuring additional work. 

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What should contractors do to develop a good reputation

What makes a good reputation?

• Delivering quality work which meets the project requirements, standards and specifications and which is aesthetically pleasing.
• Completing construction projects on time. Clients will often pay a premium to ensure that their project is completed on schedule. A contractor’s reputation depends on them delivering construction projects on time.
• Minimal fuss. Problems take time and money to fix. Problem contractors take time and effort to manage. Clients prefer contractors who get on and do the work, completing the construction project efficiently and professionally. They want contractors that take action to prevent problems from occurring, that solve problems and that don’t create unnecessary problems. Who can blame them? We all want minimal fuss and problems in our lives.
• A good safety record. Construction accidents cost money, they cause delays, create paperwork and need to be investigated, and they may result in the construction project being shut down by the authorities. Clients hate additional work created by poor safety and accidents. But accidents, injury and death also creates bad publicity. Clients hate bad publicity. In fact, many client’s senior management are paid performance bonuses which depend on the safety record on their projects. A poor safety record will negatively impact their bonuses, so some client managers definitely avoid employing contractors with a poor safety record.
• Good people. Good people includes people who are diligent, that are hardworking, that take pride in their work and that have the skills and knowledge to deliver a quality project. Some clients even award projects to companies on condition that certain people or teams are used on their construction project – people that the client knows are reliable. Clients don’t want troublesome people on their projects, workers that may behave badly and disturb the neighbours and cause problems on the construction project with other contractors, the client’s employees or the general public.
• When the client believes that they are getting value for money. Nobody wants to think that they’re being ripped-off. No one wants to think that their contractor is taking advantage of them, charging them too much or stealing from them. Unfortunately some contractors have a reputation for submitting spurious and inflated variation claims which they aren’t entitled to claim.
• Helpful and knowledgeable employees that add value to the project. 
• Responsiveness. Returning the client's phone calls, providing information when required, and fixing defects when they are detected.
• Professionalism. A professional team, including suppliers and subcontractors. An orderly construction project with minimal waste and disruption.
• Taking responsibility. Responsibility for workers, subcontractors, suppliers. Taking responsibility for mistakes.

However, this does not mean that contractors should do work for free, nor does it mean that contractors should not stand up to the client when the client is wrong. But, in doing so contractors must clearly explain why there's a variation claim, or why a problem is due to the client's team and not the fault of the contractor.

Contractors can easily undo a good reputation

A good reputation does not come easily and can take contractors time to build. But good reputations are easily ruined by one poor project or one bad employee. It's essential that the contractor's team understand how important a good reputation is.

A successful project with a happy client is an advertisement that will often reap more benefits for a construction company than money spent on advertising. A bad project and a poor reputation can quickly undo all your advertising.

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Do you want to learn how to manage construction projects successfully?

Paul Netscher has written several easy to read books for owners, contractors, construction managers, construction supervisors and foremen. They cover all aspects of construction management and are filled with tips and insights.
This article is from information in his books, 'The Successful Construction Supervisor and Foreman' and 'Successful Construction Project Management: The Practical Guide'.
The books are available in paper and ebook from most online stores including Amazon.
​© 2020 This article is not to be reproduced for commercial purposes without written permission from the author.

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