Quality and Customer Service Reign Supreme in Construction - So Why Are Tenders Awarded on Price?
In our recent poll, respondents overwhelmingly agreed that the two most important factors in construction are quality and customer service. This finding should come as no surprise - after all, construction projects are significant investments, whether they involve building homes, offices, or infrastructure. Quality ensures durability and functionality, while excellent customer service fosters trust and collaboration. Together, they form the foundation (pun intended!) of any successful project.
But here’s where it gets interesting: despite the universal agreement on these priorities, the majority of tenders in the construction industry are awarded based on price. It raises the big question - if quality and customer service matter most, why is cost often the deciding factor?
The Price Paradox
Price-driven decisions may seem logical on the surface, especially when budgets are tight or profit margins are slim. However, prioritising cost over quality can lead to long-term issues such as:
Compromised Workmanship: Lower bids often mean cutting corners or using subpar materials.
Increased Maintenance Costs: Poor quality leads to repairs, replacements, and ultimately higher expenses over time.
Strained Relationships: A focus on cost may overshadow the importance of communication, transparency, and customer satisfaction.
Ironically, what seems like a cost-saving move can end up being more expensive in the long run.
Why Does This Happen?
The industry’s fixation on price stems from several factors:
Short-Term Budgeting: Clients often prioritise immediate savings over long-term value.
Lack of Standardised Evaluation: Tenders rarely have clear metrics to assess quality and customer service effectively.
Market Competition: In a crowded industry, companies may feel pressured to lower prices to win contracts, even at the expense of quality.
Shifting the Focus
If quality and customer service are truly the cornerstones of construction, the industry needs a mindset shift. Here are some steps that could help:
Weighted Tendering: Introduce evaluation models that assign significant weight to quality, past performance, and client feedback, alongside price.
Transparent Metrics: Develop standardised criteria to assess the long-term value and service of contractors.
Educating Clients: Help clients understand the true cost of low-quality work and the value of investing in quality and service.
Final Thoughts
The results of the poll reflect what most in the industry already know: quality and customer service are essential. But until these factors are given the weight they deserve in tendering processes, the industry will continue grappling with the mismatch between priorities and practice.
The big question isn’t just why tenders are awarded on price - it’s how the industry can change to build a future where quality and service come first. After all, isn’t that what construction is all about—building something strong, reliable, and lasting?
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