Managing Relationships in Construction Projects

The Human Element: Steps to manage relationships among all construction project stakeholders

Managing the human elements can influence the outcome of a construction project just as much as having the proper technique or state-of-the-art materials. Construction projects vary in size and scope, but they all share common issues.

Most projects have an inherent tension among the various stakeholders. The building owners tend to be suspicious of contractors—they fear contractors will take advantage of them. Contractors deal with tight budgets, a gloomy work scope and unreasonable schedules. Architects and engineers often feel like referees. And subcontractors find themselves uninformed and thrown into battle with no knowledge of the overall strategy.

The International Concrete Repair Institute (ICRI) conducts an awards program each year to honor and recognize outstanding projects in the concrete repair industry. The 2011 Project of the Year team shares their five-step formula for successfully managing the human elements during construction to achieve great results.

This system has been used by the same team on several multi-million dollar projects with equally successful results.

Step 1: 

Engender Trust with the Building Owner 

As simple as this may sound, establishing integrity and trust is critical to the success of any project.  At the beginning of projects, construction business owners must show they always act in good faith, and the building owners must do the same. Without this fundamental understanding, fear, mistrust and defensiveness affect their business relationship.

In his book Start with Why, Simon Sinek, who teaches leaders and organizations how to inspire people, demonstrates the point of trust by using the analogy of circus trapeze artists:  Without a net, the trapeze team will only perform well-practiced maneuvers they have perfected to avoid making mistakes on more difficult maneuvers. But if they have a net, they will strive for new and bolder moves that push their performance to breathtaking highs.

In construction, the challenge is establishing a safety net on projects that allows team members to push the envelope and not worry about the consequences. This can simply mean speaking frankly to the owner about the budget or schedule without fearing the owner will take offense or removing one-sided punitive language from the contract to  build trust.

Step 2: 

Align Objectives Among All Construction Project Team Members

At the start of a project, team members should meet to establish and agree upon objectives. In the meeting, the contractor, owner and architect should determine their top priority for the project. They will have different priorities, but they should be compatible. By starting with several objectives and making decisions based on those objectives, the project will have a positive end result for everyone.

Step 3: 

Plan and Collaborate with Construction Project Owners

Contractors should include the building owner or representative in face-to-face planning meetings with the construction team. A significant amount of time usually passes between signing a contract and actually starting construction. During this time, a genuine sense of teamwork and camaraderie can develop if it is nurtured. Conduct round-table meetings to minimize any confrontational feelings.

Everyone must overcome several obstacles including the budget, schedule and unforeseen conditions. The team needs to be working against these variables, not against each other. This close collaboration between the customer, contractor, design team and construction team effectively reduces risk, animosity and expenses. The project becomes a team effort from the beginning, and the players work more efficiently to achieve shared goals.

Step 4:

Establish Constant  Communication Among Project Stakeholders

Miscommunication, assumptions and non-communication lead to most mistakes, cost overruns, lawsuits and accidents on jobs. Each project should have a communication plan and strategy.

Technology can be harnessed to leverage your communication efforts. Email distribution lists, project websites, project photos, iPhones and iPads all make it easier and faster to communicate clearly and accurately. Savvy contractors use this real-time information to manage the perceptions of all stakeholders. By keeping the building owner in the loop and up-to-date with both good news and occasional missteps, the contractor will maintain a comfortable dialogue with the client.

Step 5:  

Deliver Performance

Performance will either solidify or destroy relationships in the long term. Customers want to feel important to you. They measure your level of concern for them by your company’s performance at all levels.

Front-line workers who realize their efforts have a direct impact on future work will put forth extra effort and focus on the details.  The client notices your attention to detail, pride in workmanship, professional appearance and proper behavior.

Every client wants to work with a contractor who has integrity, respects the client’s goals, collaborates, communicates and performs to the highest standard. Each step builds trust and confidence with the client. These five steps will lead to repeat business and raving fans who will gladly tell others about your company.