The market intelligence from the planning system is an exceptionally powerful tool. At the heart of almost every successful construction firm is a marketing team that knows how to use it well.
At first glance though, it can appear that there is actually too much information! You’re going to need to narrow it down to find the projects most relevant to you. There are five different stages of lead, and not all of them will be useful to your company’s skills and specialities. Once you’ve understood the five types of sales leads and where your business comes into the process, that mass of projects will look much less daunting.
1. Pre-Planning Leads
These are very early leads (usually to more major developments) that come up in the press — a company relocation, for example.
Pre-planning leads are most useful to property companies or major contractors with longer-term key account development interests. A company move would also be of interest to office furniture or fit-out companies. Sometimes architects, surveyors or other professional firms will want to get in right at the inception of a scheme.
Subcontractors at the planning stage
Generally speaking these leads are too early for subcontractors. However, if the application is by a builder, developer or housebuilder, it may be moving forward quickly after securing planning permission.
A project that goes this route won’t have a tendering stage, so if you’re interested, you’ll want to get in touch.
2. Outline application and approvals
Still early, but now you have a definite project to lock onto. People don’t submit these lightly given the increasing cost of planning applications.
This stage is most interesting to local property firms and developers with an interest in site acquisitions. Builders who offer design and build services or other specialties will want to get in early, but this stage is usually too early for most building firms. Consulting engineers and surveyors may not have been appointed yet, so some professionals may find these leads useful.
3. Detailed planning applications and approvals
The first two stages are more niche, but once you get into the detailed planning application stages, you are now into the key area for almost every mainstream builder.
This stage is where building contractors will want to get involved. Builders should get in touch at planning application stage, as some jobs will proceed fairly quickly once planning officers have given an informal nod and a wink to the scheme. If you haven’t made contact, another contractor is likely to be already in and talking.
We always suggest that builders select the projects they chase carefully. It’s better to do a really good sales job on a few well selected leads than attempt to chase too many. Develop a simple scoring system on key criteria if you need to. You need to make a gentle and courteous contact at an early stage; keep talking at the times they suggest. It’s imperative to build the beginnings of relationship quickly and effectively with well-judged personal contacts. Secure your ‘foothold’ in the project early on and track it through tenaciously.
As a builder, you’ll naturally be tracking the project through to client instructions, working drawings, building regulations and then to the tender list assembly. Don’t lose contact through the process. If you go quiet for too long, it’s very easy for the architect to get the impression that you may not be too interested after all — and for your competition to make the running instead.
Besides builders, the other group who will want to look out for these planning leads are building material suppliers. This is where they should make their approach. The project will soon be moving on to building control and working drawings, making this the ideal time to get your products specified by the architect or user.
4. Tender stage
The client will be looking at main contractors now, and those contractors will be pricing up the work and making their bids.
The tender stage is where the subcontractors can start to pick up the trail. It’s almost always too late for main contractors, but a good time for specialists to make sure they’re in the running for subcontracts — especially those first on site, such as groundwork or demolition companies. If you’re a subcontractor who gets their business from contractors, you need to be in right away. The tender stage last only three to four weeks in most cases, so don’t wait around!
Building material suppliers are still in with a shot here too, whether they’ve secured specification from the architect or not.
Remember that the main contractor may only have a one in three or one in four chance of winning the work, depending on how long the shortlist is. That means there’s no certainty of getting the job and some subcontractors prefer to hold off until the contract is awarded. However, long experience shows that it’s well worth engaging with builders at the tender stage.
Builders know that subcontractors would prefer to discuss actual jobs won, but they still need competitive subcontract prices at tender stage. They will frequently want new subcontractors to prove their interest and stickability by pricing enquiries at tender stage. Don’t see this as a waste of time, see it as a way to build relationships and prove your good faith.
That’s actually no inconvenience, if you are a subcontractor who has access to good tendering information. It can actually be a very effective way to generate more new contractor contacts and relationships very quickly. One tenderer you price for can easily lead to two or three others within days, and they are always happy for you to copy your price across.
The real prize is to track it right through to the contract award and make sure your price is under consideration. And of course, your courteous and friendly tracking of the job through numbers of contacts over perhaps six to seven weeks does you a huge amount of good in terms of the relationships you’re building all the time.
5. Contract award stage
The final stage of the sales opportunity pipeline: the main contractor has now been appointed, and they’re getting into the detail of who’s going to be doing what.
This is the preferred stage for most subcontractors, and those specialising in the early trades — brickwork, roofing or plastering should get in touch now. Trades that come in once the shell of the building is complete, (for example electricians, joiners, painters and decorators) might want to hold off for a week or two. You’ll avoid the rush of calls that inevitably happens once a main contract is awarded.
It’s a little late for site services, as these tend to be booked in very quickly, but always worth a call. If you don’t get this job, it’s an opportunity to ask about what’s coming up next. Material suppliers who sell to subcontractors can also use these leads.
When to make your move
Since up to 25% of schemes are refused, some builders save time by waiting for planning to be granted before they get in touch. There are big downsides to this. As sales professionals we always prefer to make contact at the actual application stage.
Most projects do get through first time, even if they take ages. If you waited and the client was keen to proceed, you’ve missed your chance. Better to get in early — have a quick chat with the architect and then hold back for two or three months if required.
Secondly, if permission is refused, it may be resubmitted. By being early, we can stay with the project even if it goes to appeal, while competitors will fall away. The success rate in getting a tender with jobs that are delayed is usually much higher than with those which move quickly!
What if there isn’t time to quote?
Even the best researched leads from Emap Glenigan or Barbour ABI can come in a little late. Quite often there is not enough time to quote for your particular trade.
Don’t be deterred — these leads are still good intros and a lot better than ‘cold-calling’. Every estimator you talk to will have a stream of tenders coming though. There is almost always upcoming interest for you.
