Partnerships are hard. Even normal human connections aren’t easy to build but are just as easily broken with the slightest problems. So you can expect a business partnership to be pretty messy. But it doesn’t have to be. With the right preparation, expectations, and mindset, anyone can experience the benefits of joint projects, especially in the construction industry! So in this article, we’ll be taking a look at some of the best things to keep in mind when starting a joint contract in construction.
Perfect your sales pitch
Before entering into any partnerships, it’s important to be able to clinch that big project you’ve been meaning to get your hands on. In order to do that, you need to be able to perfect your sales pitch to a prospective client — including your possible partner for the project. While the particular company that you will partner with may be finalized later, you should still give an estimate of how much work you yourself will be doing for the said project.
Marketing and communication skills will have to be mastered in this aspect. Without the green light of a client, there’s no way you can enter into any kind of project with a different contractor, no matter how in sync the two companies are.
Know your strengths and weaknesses
To determine the extent of your participation in a project and understand what kind of help you need, you should first assess yourself as a company. Be honest and list down your strengths and what aspects you need some assistance with. Once you’ve got that covered, you need to review the types of construction workers out there and which specialties you would need to partner with to make your big project a reality.
After learning what kind of partner you’d need, you must then do your own research with regards to the strengths and weaknesses of your prospective business partner. You may need to pitch the project again or simply ask them for a formal meeting to discuss the potential joint venture. This is where knowing your own strengths would come in handy, too.
Maintain open communication
Assuming that you and your business partner have ironed out the terms of your venture, another important tip to keep in mind is to always maintain open communication, especially if the authority on the project is equal. Your partner needs to know when things aren’t going as planned, in the same way that you expect the other side to be transparent, especially with regards to issues that may make or literally break your entire partnership.
Maintaining open communication is also essential during the negotiation of your venture and how much power you have for the project. Remember: Good communication is one of the most important foundations of any relationship whether it be personal or business.
Work only with licensed companies
Working with a licensed company means you have some sort of guarantee of the professionalism and legitimacy of your partner contractor. Hence, this is a pretty obvious factor that some companies sometimes forget in the quest of looking for a good deal or when they’re short on time to make necessary arrangements for a big project.
However, since there’s a lot more at stake in a big construction project like an entire townhouse or condominium development, then you should only consider partnering with someone who has an updated license.
But this same strict criteria must apply to you, too. If you’re doing a site-specific project, let’s say in Florida, then you must certainly pass the Contractor’s License exam in Florida. Otherwise, no good company would ever want to be your partner. In fact, you might not even qualify for a big project at all.
Don’t forget to keep things black and white
Before signing any contract for your dream project, you should exercise caution and hire a good law firm to make sure that you will not be duped into something that would cause your bankruptcy. Nobody wants a bad deal and getting a lawyer to represent you during negotiations is definitely not a bad idea. After all, you’re the one who’s going to live with the consequences of a poorly drafted contract.
Entering into a business partnership is a big move for any enterprise. It requires skill, patience, knowledge, and good social skills to be able to work in harmony with other firms and their own business climate. However, if you follow these tips to the tee, then you’re sure to end the partnership as a success which would absolutely prove your worth in the industry.