CREJ - Journal

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52 / BUILDING DIALOGUE / MARCH 2015
A lthough most of us seek out the best deal
when shopping for a car, house and tooth-
paste, our team often receives feedback of
frustration from colleagues when clients make
their final selections based on the lowest fee or
lowest bid. The challenge in front of us is to demon-
strate why a client should pay more for our services.
This is very difficult when you are selling a service to
those who have limited industry experience. Is being
selected by low fee always bad? Should we embrace
that we have to provide the lowest fee to win the final
selection? Here are some things to consider on why
owners’ hiring based on lowest fee isn’t all bad.
New markets. We have seen design and construction
firms have an iron grip on certain project types, be it
libraries, police or recreation centers. We have worked
with great firms with great people who never seem
to have an opportunity to demonstrate their abilities
on these types of projects. In fact, many won’t submit
because their qualifications can’t compare. What if
you had an opportunity to overcome a qualifications
based selection process and break into a whole new
market without teaming or changing your processes?
You might reconsider submitting given the more level
playing field.
New subcontractors. In the Construction Manager at
Risk process, we see favoritism to certain subcontrac-
tors by certain general contractors. As these subcon-
tractors become complacent and understand how
to bid against the usual two go-to firms, prices creep
up and, as a general contractor, you lose a competitive
edge. Consider blaming the owner and the competitive
process as a way to venture out to a new subcontractor
you may want to work with.
Performance. Sometimes we have something to prove
when we are given a chance. We have often seen high-
er levels of service from teams that are given a chance.
Typically, a subcontractor or consultant will not take
his new opportunity lightly.
Represent the owner. Owners want their design team
and general contractors to represent them and their
project goals. We rarely see design teams present how
they procured their consultant team in a way that
demonstrates a consideration for fee. Demonstrate
your effort to get the client the best value and they will
remember it, even if you are not the lowest fee.
Recession ready. Working with the same consul-
tants and subcontractors time and time again is not
a true depiction of the market and may not prepare
you when the next recession comes. There are many
smaller, younger, more nimble firms that youmight be
missing out on. Be ready to win work when price is a
significant driver.
Bid ready. When interviewing general contractors, we
Paul D.
Wember
President,
Wember
TRENDS in Owner’s Representation
ROCKY MOUNTAIN GROUP
A Design Team for Every
Phase of Development
•Architectural Design • Structural Engineering
• Land Planning • Civil Engineering
• Goetechnical Engineering • Materials Testing
• Forensic Engineering
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