Unlocking the Secrets of Contractor Selection
7 Insider Tips Commercial Landlords Use to Choose the Right Partner for Their Projects.
In the competitive world of commercial real estate contractors, standing out from the crowd can be a challenge. But with the help of Carbon Lighthouse, contractors can gain a decisive edge in the selection process. Specifically designed for HVAC, Controls, and Lighting Contractors, Carbon Lighthouse offers a unique opportunity to differentiate themselves in the market.
By partnering with Carbon Lighthouse, contractors can provide landlords with a new source of income, allowing both landlords and tenants to reap the benefits of energy reduction projects. For any contractor who works with NNN buildings, energy solutions that benefit both the landlord and the tenant knows how powerful solving the split-incentive problem is.
For contractors, this means giving your customers a new topline income stream, not the bills they’re all too often used to. Revenue streams attached to energy projects give landlords a new factor for evaluating and prioritizing energy reduction projects. Carbon Lighthouse is the only company with the technology that turns an energy project from a “maybe” to a “no-brainer”.
When coupled with these 7 ways commercial landlords typically select a Contractor, we equip you with what you need to boost your awareness, increase your funnel and ultimately win more deals.
Here are the top 7 ways Contractors can bolster their business with Carbon Lighthouse.
- Request for Proposal (RFP): Landlords may issue an RFP to solicit bids from contractors for a specific project. The RFP will outline the scope of work, budget, timeline, and other requirements for the project. Contractors will then submit proposals that outline their approach, qualifications, and estimated cost for the project.
You’re probably already on the landlord’s shortlist if you’ve been asked to respond to an RFP. Don’t be fooled, though. It’s worth asking the landlord, “Do you already have someone in mind you’re looking to work with, and you need bids for a process, or are you still choosing?”
- Referrals and Recommendations: Landlords may rely on referrals and recommendations from other building owners, property managers, or industry professionals to find contractors for a project. Personal connections and a strong reputation can be essential factors in the selection process.
- Past Performance: Landlords may review the past performance of contractors, including their experience, the quality of their work, and their ability to meet project deadlines and budgets. Contractors with a proven track record of successful projects are more likely to be selected.
A proven record is critical. Most landlords do business with those they know and trust. Word of mouth isn’t everything, but it’s close to everything for landlords discovering new potential partners. Price matters less than your reputation of saying what you’ll do and doing it.
- Licensing and Insurance: Contractors must be licensed and insured in order to work on commercial buildings. Landlords will verify the contractor's licensing and insurance status before selecting them for a project.
- Price: Price is often a key factor in the selection process, as landlords are looking to find contractors who can deliver quality work at a competitive price. However, price should not be the only consideration, as quality, experience, and reputation are also important factors in the selection process.
This likely matters less than you think, and we see this all the time: our customers (landlords) routinely go with higher bids from contractors they know and trust already. You cannot be 2x the cost, but a 20% premium to the lowest bid is often easy to achieve.
- Specialization: Some projects may require specialized skills or expertise, such as experience with specific building systems or materials. Landlords may look for contractors with experience working on similar projects or who have demonstrated expertise in a particular area.
In these cases, the projects are often not bid at all.
- Bid Process: Landlords may use a formal bid process to select project contractors. The bid process may involve several rounds of bidding, with contractors submitting proposals that are evaluated based on factors such as price, experience, and qualifications.
Commercial landlords have a range of options when it comes to selecting contractors for projects. The selection process will depend on the specific needs of the project, the budget, and the preferences of the landlord. However, in general, landlords will consider factors such as past performance, licensing and insurance, price, specialization, and the bid process when making their decision.
By partnering with Carbon Lighthouse and considering these seven factors, contractors can significantly increase their chances of success in the competitive world of commercial real estate contracting. Ready to unlock NNN buildings and generate major energy savings for your CRE owners and their tenants?
Contact us and we'll show you how to see results in less than 3 months.