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NETWORK UTILIZATION: BUYERS


It’s no surprise that relationships between principals are reinforced by a sense of trust, capabilities, familiarity and chemistry. Owners and architects, then, may be reticent to open up the contracting opportunities to a wider audience beyond their select favorites. We get it! However, there can be missed opportunities when these projects fly under the radar, such as:


1. Developing relationships with a wider group of contractors and their subcontractors gives you more control. With the industry flourishing, contractors and subcontractors are busy. It can be challenging to find good providers to do the work within schedule and budget. Promoting the project to a wider audience expands the opportunity to find more trustworthy contractors and their circle of capable subcontractors.


2. Promoting a project as early as possible before bids are due allows for ample lead time, which can be critical to a successful bidding/negotiating process. Many contractors would welcome at least 120 days to put a project on their radar screen so they can conduct due diligence on the project site, truly understand the plans and specifications, and consider constructability and local code issues, not to mention assessing and fostering the relationships needed to satisfy the project requirements.


3. Competition among a wider group of manufacturers and suppliers provides real opportunity to save on cost. Depend- ing on the type of project, building products and materials may equate to 45% to 55% of the total building cost. Competi- tion and innovation can provide tangible savings. Let’s say that the overall construction cost is estimated at $20,000,000, building products and materials average 50% or $10,000,000, and competition/innovation lowers the price of these an average of even 5%, that could mean a savings of $500,000 to the project budget.


All that said, in our inaugural issue this past spring, we discussed the benefits of our Architect Keystone Alliance. Archi- tects across the country are now seeing the control they have and the opportunity to develop new relationships. Added benefits for architects and especially owners are on the horizon. Blue skies ahead!


As always, I value and look forward to your feedback. I can be reached at mnapier@mail.thebluebook.com.


Mark Napier Director of Project Information


POWERED BY THE BLUE BOOK NETWORK - PITTSBURGH & WESTERN PA / FALL 2016


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