EOIs part 1: What are they & what purpose do they serve?

The construction industry in Australia requires contractors to follow certain processes. The process depends on the type, scale, and budget of a project. While there are specific things that need to be checked off for residential projects, this post will focus on one of the major processes in the commercial building world: the EOI.

What are EOIs?

An EOI is an ‘Expression of Interest.’ Basically, it is a document that responds to a tender proposal. Just to refresh your memory, a tender is a document sent out by a client explaining all the requirements of a project. The tender then invites all contractors that meet the necessary requirements to submit an EOI. The EOIs are then collected and judged by a panel, and they decide which company wins the work. As such, it is very important that commercial builders in NSW submit good EOIs. In addition, it’s usually the most lucrative projects that require EOIs. Therefore, EOIs can affect not only a company’s professional standing, but also their income.

What’s included in an EOI?

The format and content of an EOI depends entirely on the tender. However, there are some key things that need to be addressed in every EOI. Firstly, the contractor will have to explain why they believe they deserve the work. They may draw on their experience, resources, or reputation in the industry – basically, anything relevant that will help shape their case. This is their chance to persuade the tender panel why they should win the work, and all of the benefits that come with it. Secondly, the NSW commercial builder will have to prove that they meet all of the requirements in the tender. They will need to show that they have the resources, finances, accreditations, time, and specialist skills to complete the project to ‘spec.’ This assures the client that the building contractor will be able to complete the project to their needs, timeframe, and budget. There is no room for dishonesty in an EOI – it actually acts as a legal document once the work commences. The whole basis of opening a project to EOIs is to ensure that the best, most deserving company wins the work.

What is their purpose?

The concept of an EOI is quite straightforward, and so is its purpose. For contractors, EOIs provide an opportunity to prove themselves in front of an industry panel. They also allow contractors to determine the kinds of projects they can (and want) to work on, thus giving them something to work towards. From a client’s perspective, EOIs provide them with options. They also give clients a sense of security: as the tender/EOI process is done in writing, the contractor is legally bound to follow through.

In this post, we’ve defined EOIs and given a brief overview of why they are so important. Next week, we will explain how to prepare an EOI that stands out amongst its competitors.

Tenders, explained.

Tenders add to the challenging and competitive building arena. They require thought and time, with no guarantee of success.  Here we explain the basics of tendering.

What is a tender?

A tender is one of the ways through which the public sector buys goods and services. Organisations that need work done put out a Request for Proposal (RFP), and invite companies to respond. They do so via a tender, which details how they intend to carry out the work. The tender itself is a formal document that clearly explains how a building company can meet the requirements of the proposal.

What’s the process?

Among Sydney developers, submitting a tender is a very competitive process. It’s often the only opportunity a company has to demonstrate that they have the skills, experience, and resources to meet the requirements and do the work.

At Patterson Building Group, we often ask ourselves the following questions before writing up a response:

• Do we meet all of the criteria in the proposal?
• Do we have the time to undertake this project?
• Do we have previous or similar experience with this type of project?
• Do we have the staff, training, and resources to take on the job?
• Is there any reason why we shouldn’t submit a tender? (This could be anything from having a conflict of interest to not having the finances to see the project through to the end).
• Do we understand the organisation that we are potentially going to be dealing with? Will we work well together?
• If we win, will we need to contract some of the work or can we do it all ourselves?

Once a company has decided that it’s worth submitting a tender, they put a lot of effort in writing a winning response.

Below are some of the key items that need to be featured on a tender document.

• Response to RFP. This is generally a paragraph at the very start of the document. It details why the Sydney commercial builder has decided to respond to the RFP, and briefly explains why they feel they deserve to win the project.
• Company overview. Brief description of the company, and why they would work well when partnered with the buyer.
• Specifications. This is where the company proves that they meet every single requirement on the proposal’s list. This includes factors such as previous experience and resources.
• Price. Provide the best possible quote on the tender. Many buyers won’t negotiate the price at a later stage. Remember that giving value for money is better than offering the lowest price.

Don’t forget that deadlines are the most important thing of any tender response. All RFPs have a due date and companies will not accept anything after that date.

If you can prove you can deserve the work, then you’ve got a very good chance at winning the project. Once you’ve submitted your tender, the rest of the process is out of your control. The most difficult thing about tendering is accepting that the final decision is out of your hands. May the best company win!

Predicted Building Trends for 2012

In almost every industry, the turn of the new year has brought with it a discussion about the trends that will dominate 2012. The construction industry is no exception. There have already been a number of reports from Sydney developers as well as companies like McGraw-Hill predicting where, what, and how to build this year. Here are some of the findings.

Multi-purpose commercial buildings

While the residential sector of the construction industry has been quite unstable in the past few years, commercial buildings are on the rise. In particular, multi-purpose buildings will be key. These buildings need to house various companies and functions at the same time. For instance, industrial units, high-rise office blocks, and loft-style offices are all buildings that can cater to large number of working people comfortably. As well as the style of the building, location will also be a major consideration. The value of a commercial building increases when it is centrally and conveniently located near public transport and shops. Though the land may be expensive to purchase at first, the return on investment will be worth it.

Functionality

In 2012, functionality and practicality will reign over extravagance. After years of unique, superfluous designs that were sometimes a little too artistic, minimalism is back. The building industry will see a return to simplicity, to clean lines and classic design. Admittedly, this trend has been driven by the instability of the economy and funding, but it is a positive change. Building in a functional and practical way reduces unnecessary expenditure and use of space. This trend also links closely to the increase of multi-purpose buildings, as the aim is to create buildings that allow more people to live and work in them effectively and comfortably.

Green Building

Many eco organisations are optimistic that 2012 will be the year where green building becomes a standard for Sydney commercial builders. The ultimate aim is for green buildings to become the norm rather than an afterthought, but this is a gradual process. ‘Green’ buildings are more affordable now than ever, and will only become more popular as people discover how space, time, money, and energy saving they are. As well as these benefits, building ‘green’ is also about using space in the most smart, practical way. Some ‘green’ features that are predicted to really take off in 2012 are green roofs, water saving fixtures, efficient lighting, and solar power. Also, excess free space (such as large foyers) will be replaced with more practical uses.

Of course, the year has barely begun, so these are just predictions. They are based on extensive research, so it will be interesting to see if they turn out to be accurate. Regardless of how they play out, Patterson Building Group will continue to focus on commercial buildings and keep up our green initiatives.

The benefits of variety building

Variety is the spice of life, and we believe that there’s no reason why this philosophy shouldn’t apply when it comes to building. While it’s understandable why some Sydney developers choose to specialise in a niche area of building, there are also plenty of benefits for variety building.

Showcase ability

If nothing else, variety building will allow you to showcase the extent of your abilities. By being involved in the design and construction of a range of projects, you will be able to showcase an impressive collection of work to clients. By building up a varied creative portfolio, you will prove your flexibility, which is an excellent trait to have in this industry. It will also showcase your diversity and willingness to take on different projects. This, in turn, will increase the likelihood of attracting new clients as well as repeat work from existing clients.

Increase business prospects

When you restrict your Sydney construction company to a certain type of building, you automatically limit yourself to a smaller number of clients and prospectives. By allocating time, training, and resources to variety building, you will be opening yourself up to more opportunities. From a business point of view, variety building will allow you expand the client base in the future. Remember that every client is different, and every client has unique needs. It’s only natural that if you have an array of projects to promote, you will attract a larger number of clients. However, there is a fine line between limiting and overstretching your company. You still need to be excellent at the work you accept, so ensure that you have staff with the know-how on each type of building project.

Think about the future

Having an impressive, diverse creative portfolio will give you the option to expand the business later on down the track. If you have been variety building, then you will have the knowledge, skills, and staff to handle a range of projects. If and when the opportunity presents itself to expand the company, it’s very likely that you will be able to embrace it.

Challenge

Everyone loves, or at least needs, a challenge once in a while. For builders and managers alike, taking on the same kind of projects all the time can get repetitive, boring, and very uninspiring. Site managers should have the chance to be creative. They need to be challenged to test their boundaries, to learn something new, and to nurture the talent of their staff. Similarly, builders need to be able to mix up their work. They will be more inspired if in the space of months, they get to work on completely different things: a retirement village, a railway station, and a school. If you want to stimulate your staff, keep things interesting and challenging.

At Patterson Building Group, we believe that being different sets us apart. In a world where expertise is a type of currency, why be an expert at just one thing?

Balancing Cost and Profit in Large Scale Building

Construction companies in Sydney as well as developers rely on detailed research and planning in order to achieve the best results for investors. Without doing that research building projects can suffer from cost blow outs or a lack of demand if built in the wrong area or the wrong time. The more ground work that is laid before builders in Sydney begin a project, the more likely that profits from that project will increase.

The main aim of a construction project is to return a profit on initial investment in the short term via selling or in the longer term under lease arrangements. This is why having people ready to move in by selling or renting ‘off the plan’ can help a project make money before it is even completed. Being conservative in cost and profit estimates can also help to avoid disappointment to yourself or investors.

Click Here To Read More

Things to Consider for Your Large Scale Building Project

A large scale building project requires some large scale considerations and thorough planning. Builders in sydney will understand the importance of good planning when you are completing a large project. Not only are their cost concerns but also the surrounding area and the deadline of the project.

Important things to consider:

• Location of the building site.
• Cost of the building site.
• Site accessibility for resources.
• Site accessibility for workers.

Click Here To Read More

The Value of Large Scale Development in Australia

It is easy to forget that even twenty to thirty years ago builders in sydney were still developing housing on the city fringe. A ‘big development’ decades ago might have amounted to a few shops and a medium to large retailer. These days infrastructure has been recognised for the boon that it can be for the local economy and works in the following way:

• Initial planning of major infrastructure sees community input.
• Once planning is complete construction provides jobs within the community.
• The work will provide a flow on effect for local businesses.
• Area sees increased development because of improved infrastructure.
• Value of area increases as well as overall productivity.

Click Here To Read More