The Contract Administration Revolution: Why Your Construction Business Needs It
By Michael Emerzidis
In the dynamic landscape of the construction industry, effective contract administration is crucial for success. However, one often overlooked aspect is the influence of emotion in decision-making, which can lead to risky deals and strained client relationships. This is where consultants, as impartial observers, play a pivotal role. In this article, we will explore how consultants act as fresh eyes in your business, remove emotion, and function as auditors of your day-to-day operations, ultimately safeguarding your business and client relationships.
Consultants bring an invaluable outsider’s perspective to your business. While seeking advice internally can be excellent, it may sometimes be clouded by personal relationships or emotions. For instance, consider a scenario where a long-standing client proposes a contract with terms that make you uncomfortable, exposing you to potential financial risks. The bond of trust you’ve built with them over the years might lead you to accept these terms against your better judgment.
Money Over Relationships
In business, the bottom line often trumps personal relationships. Many business relationships sour due to financial disputes. Contracts, if administered properly, can serve as a shield against such conflicts. Consultants provide an objective viewpoint, removing the emotional burden from decision-making. They can evaluate the terms objectively, ensuring that your business’s financial interests are protected.
Playing Good Cop, Bad Cop
Consultants can also help maintain a balanced professional-client relationship. By involving them, you can position yourself as the “good cop,” focused on maintaining trust and fostering positive client interactions. Meanwhile, the consultant can play the “bad cop,” scrutinizing contracts and ensuring that your business’s interests are safeguarded. This approach separates the emotional aspect of decision-making from the practical, ensuring both trust and financial security.
Securing Your Business Holistically
In essence, the key is to eliminate emotion from critical decision points. Engaging with an external consultancy firm that assists you from the tender phase to project handover ensures your business is protected and positioned for growth. This approach is not about favoring particular clients due to past relationships; it’s about securing your business comprehensively.
In summary, to best protect your business and maintain trust with your clients, it’s essential to remove emotion from contract administration. Engage an external consultancy firm to assist in project delivery, from tender to project handover. Consultants provide a professional, unbiased perspective that ensures your business thrives financially while preserving client relationships. In the ever-changing construction industry, it’s not about emotions; it’s about smart, strategic decisions that secure your future success.