Why Introductions are Important Between Prime Contractors and MWBE Subcontractors
Business is all about relationships…How well you build them determines how well they builds your business…
Brad Sugars
Large to small scale construction is more often than not multi-disciplined, capacity-constrained, and has unique complexities that require specific skills and services. All these factors lead to a need for prime contractors and subcontractors to find good, experienced, and capable partners.
The means and methods to finding good experienced and capable partners are through referrals, reputation, and introductions to previously unknown potential partners. Whether through referrals, reputation, or a connection with those previously unknown, an “introduction” between a prime contractor and subcontractor is extremely beneficial. In this article, we’ll shed light on exactly why they are so important for both sides.
When Does it Count as an Introduction?
Often when MWBE subcontractors meet prime contractors at business fairs, meet-and-greets, and pre-bid meetings, they mistake this first meeting as an introduction. These first-time meetings are merely the opening step in a dance to build a relationship between a prime contractor and subcontractor.
The initial step to building a relationship between a prime contractor and a subcontractor is through a formal meeting scheduled for the purpose of introducing two parties to each other specifically to learn about their respective businesses and explore how they may work together. This “formal meeting” is more appropriately labeled a “formal introduction”.
What are the Benefits of an Introduction?
Formal introductions for an MWBE subcontractor facilitate face-to-face connections, bringing one’s company off the page and to life for prime contractors. A well-executed introduction can help with building out a team, networking, and providing greater business exposure.
For the prime contractor, introductions also allow an opportunity to share with the MWBE what they are looking for in a partner and what projects they currently may be looking for partners.
For the MWBE, it is a great opportunity to make an impression with a company that could provide you work, get your name on a list for future projects, and learn how processes are handled at different companies to continue to sharpen your understanding of where you can fit in and get more work for your services.
In the construction industry, whether pursuing public low bid projects or private sector work, prime bidders want to know and be comfortable with their subcontractors because they, like all businesspeople, seek to minimize risk and work towards being profitable on each project. The key for both primes and subcontractors is to take the time to undertake meaningful introductions, which are the first step in building a business relationship.
Are you a prime contractor that needs introductions to MWBEs for a certain project or an MWBE who wants to know more prime contractors who may need your area of expertise? Coleman and Associates, Inc. can help arrange valuable introductions for you.
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