Value, Value, Value—and then add even more Value! It’s the buzzword for business coaches in 2025, but is there real merit in the constant push to deliver value?
Regardless of whether you’re an architect, builder, estimator, draftsperson, or florist, if you provide a good product and service for the money charged, you offer value. It’s important to note that I didn’t say “cheap.” It’s common sense; we all seek value in everything we purchase. However, there’s a distinction between short-term value and long-term value.
Let me illustrate this with an example.
**Short-term value:** A client asks Builder 1 for a Design-Build quote. Builder 1 provides a price estimate and charges X dollars, delivering what they call an “indicative estimate,” loosely predicting that the project will finish on time and within budget. This appealing short-term value convinces the client, and a contract is signed. However, Builder 1 later charges the client for a change in the plans due to council regulations. As a result, the initial value diminishes.
The original timeline to complete the build was 12 months, but the job actually took 24 months and exceeded the budget by 50%. The initial short-term value offered was outweighed by the lack of value in the end, resulting in a dissatisfied client who shares negative feedback about Builder 1. This short-term value can have long-term consequences for the business.
**Long-term value:** Now, consider a client who approaches Builder 2 for a Design-Build quote. Builder 2 charges more for the quote, which will take four weeks to prepare. They take the time to explain their detailed process and the lifetime value of this thorough approach to the client:
– Feasibility study
– Fortnightly client meetings on-site after the foundations are laid
– Geotechnical testing
– Survey plans
– Detailed 3D modeling
– Pre-construction 3D walkthrough (geolocated)
– Detailed 3D engineering
– Detailed Bill of Quantities
– Authority pre-approval
A comprehensive contract is signed, and the project receives authority approval without any issues. A realistic project commencement date is set, and Builder 2 meets the first milestone on budget. Builder 2 continues to engage with the client on a fortnightly basis, keeping them informed about what has been accomplished and what will happen next.
Builder 2 also outlines deadlines for selections, allowing for charged extension of time clauses if those deadlines aren’t met. The client understands what they need to do to ensure the project stays on schedule and within budget.
If the client requests an amendment to the contract, Builder 2 charges for the administrative time spent assessing the impacts on the project, delivering a contract variation that details the changes, the costs, and the required time extension, along with the due date for payment. The client can choose to agree or disagree, and the project proceeds.
Ultimately, the job stays within budget and adheres to the contract terms, ensuring that clients feel well-informed throughout the process. This represents long-term value. Builder 2 never dropped their prices and did not encounter unpaid variations. The situation described above is a good example of long-term value, resulting in 9 out of 10 customers sharing their positive experiences with everyone they know. This, in turn, generates referral work. Referral work is essential for every builder to remain profitable and busy during both recessions and boom times.