EOIs Part 2: How to Produce an Effective EOI

In our last post, we outlined the key purposes of an Expression of Interest (EOI) in the construction industry. This week, we are going to explain how to produce an effective EOI. This is important for several reasons. Creating an EOI requires a substantial amount of time and effort. Sydney commercial builders carefully consider the best approach to take when crafting an EOI, taking factors such as the client, their resources, and the scope of the project into account. Time means money, so putting together an EOI really is an investment. A strong EOI determines which company wins the project, as well as the prestige and income that comes with that. Therefore, the ability to develop a good EOI is integral for every construction company’s industry success.

The structure and content of EOIs often vary. However, there are some common things that should be addressed in every EOI. Here we detail how to approach these key sections.

Criteria

Before writing an EOI, you need to ensure that you meet all of the criteria that are outlined in the tender proposal. If you don’t, in most cases there is no point in submitting an EOI because the tender panel will not be able to consider it. Of course, if you do meet the criteria, you should spell this out in some detail. You will need to prove that you have the resources, skills, expertise, experience, and financial capacity to take on the project. In this section, it’s also appropriate to explain why you’re the most deserving out of all the Sydney construction companies who submitted EOIs.

Previous experience

This is the place to showcase relevant project experience that relates to the tender for which you are submitting an EOI. For instance, if you are applying for a hospital project, promote your work on other hospitals or health facilities rather than emphasising your work in building hotels. It’s also a good idea to outline any challenges that you successfully overcame while working on these projects, such as working while the site was in operation, or having to coordinate your activity with other contractors. If you don’t have any relevant experience, but you feel like your company is ready to win the work, include examples of projects you have done that are similar in scope and scale. It’s also really important to be realistic about your experience and expertise, and really think about whether you do have the ability to take on the project.

Staff and clients

Include a list of staff members that you would assign to the project if you won. If possible, detail any relevant experience, expertise, and achievements. It’s also worth including a few client referees that can attest to your company’s capabilities, work ethic, communication skills, and ability to meet deadlines.

Approach

This section provides the opportunity for construction companies to explain how they would approach the project. It’s the place to outline the technology, methods, software and systems you would implement if you won the work. It’s also the place to explain why your approach is an effective one, and how it will help you to complete the project on time and to budget.

Accreditations

Finally, every EOI should contain proof of your certification in the building industry. Ensure that you can confirm your accreditations in OH&S, Environmental Management, and Quality Assurance.

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.

What’s involved with maintaining a commercial building?

Buildings are like cars – they do require some ‘servicing’ from time to time. While some of the maintenance is based around making the building as aesthetically pleasing and comfortable as possible, there are actually many aspects that are legally required. For owners, maintenance really is an ongoing thing. It’s a good idea to review and fix problems as they arise, rather than allow them to build up and get worse. Trust us when we say that it’s worth investing in maintenance in order to avoid costly work later on down the track! Below is a very brief checklist of the types of things Sydney developers and owners need to be able to tick off.

Interior

Commercial buildings can house hundreds or thousands of people at a time. Because there are so many people that work and generally spend a great deal of time in commercial buildings, it is so important to make sure they are regularly maintained. Building inspectors can drop in at anytime unannounced, so it is in every owner’s best interest to be confident that everything is up to scratch.

Safety

 

• Review safety measures of the building. Are they compliant with the latest version of OH&S? (The most up-to-date OH&S requirements can be found on the Australian Government website).
• Check the condition of stairs and railings – they need to have enough grip to support those using them.
• Test the fire alarm and make sure the fire extinguisher is working.
• Confirm that the emergency exits are easily accessible by everyone in the building.
• Check for tripping hazards.

Facilities

• Ensure that the plumbing and electricity throughout the building is safe and unexposed.
• Check that all fixtures in the kitchens and bathrooms are working properly (e.g. fix any dripping taps and broken flushes)
• Make sure the elevator is operating well on each floor, and that the emergency instructions are clearly visible.
• Windows and doors should easily open and close.
• Confirm that the garbage removal and cleaning services are sufficient enough for the demands of the building.

 Aesthetics & comfort

• Check that lighting is sufficient in all areas of the building.
• Maintain insect and pest control.
• Make sure there is enough ventilation flowing through the building, particularly in basement areas or rooms where there are a lot of computers.
• Ensure that signage is clear and obvious.

Exterior

Maintaining the outside of a building is just as important as the inside. While it’s important for the building to look presentable, it also needs to be safe for people walking in and around the property. Sydney commercial builders will usually take the below into consideration in the design stages of a project.

Street view

• The street number, warning signs, and other signage needs to be clearly visible from the street.
• There should be sufficient lighting for people walking in and out of the building during nighttime hours.

Grounds

• If the commercial building has gardens or landscaped grounds, they need to be attended to on a regular basis. This involves mowing, manicuring, and weeding.
• Owners also need to fix any weather damage, such as erosion, leaks, or the impact of hail or heavy rain.

While this checklist will guide owners about what they need to look out for when maintaining their building, it is not as extensive as the official ones provided by the government as well as investigators. This is a good start, but please contact those departments for the most up-to-date, comprehensive information.

What are the Australian safety requirements for commercial buildings?

Australia has very vigilant laws when it comes to the safety of commercial buildings. As part of their accreditation process, all construction companies must prove that they are compliant with Occupational Health & Safety (OH&S). Basically, OH&S prevents – or at least reduces – the chance of injuries and accidents happening in the workplace. In Australia, ‘Safe Work’ develops and implements national policy about OH&S. They guide safety regulations, run regular risk assessments, and help businesses to maintain their OH&S.

While the OH&S rules are very comprehensive, below is a list of the kind of hazards that Sydney commercial builders need to look out for. Usually, these will be considered in the planning and design stages of the project, but they are legal requirements in the construction stagesNo uneven or slippery surfaces. Construction workers try to reduce the chance of accidents by putting grips on stairs etc.

• No obstructions restricting movement inside and outside the building. Builders take measures to protect workers, as well as anyone from the public that may be passing by.
• No objects with rough or sharp surfaces.
• No surfaces and materials that are very hot or cold to touch.
• Take care when working in unusually high workplaces. People should be able to reach upper levels safely, via stairs or lifts. This prevents the risk of falls.
• Insufficient first aid. Every commercial building needs appropriate first aid supplies.
• All buildings need clear safety signs and instructions on display, including exit signs and the fire drill procedure.
• No exposed electrical lines or equipment.
• No insecure scaffolding.
• No flammable or explosive materials.
• Reduce chemical substances (including dust) that may be in the air.
• There must be measures in place to prevent back injuries caused by carrying heavy loads or operating machines.
• Reduce exposure, and therefore impact of, high levels of noise and vibration.
• All areas of the building need to be well-lit.
• No biological hazards, such as viruses, mould, and asbestos.
• All equipment and machines used on site must be of good quality, and operated by trained staff.
• There needs to be sufficient, clean, and functional facilities in all commercial workplaces. These may include changing rooms, bathrooms, and kitchens.
• Everyone inhabiting the building must wear correct protective gear at all times. For example, during the building process, construction workers will need to wear hard hats. Once it’s business as usual, workers will need to wear footwear.
• Must have adequate waste disposal facilities.

OH&S is in place to protect people from harm, and it should be treated as a serious issue. All of us should be grateful that construction companies in NSW have to be properly accredited before they work on the buildings that we spend so much time in. In addition, we should all be appreciative of Australia’s high standards when it comes to safety.

Note: Patterson Building Group is compliant with the latest OH&S systems. They have been accredited by Global-Mark, the NSW Department of Finance & Services, and the Office of the Federal Safety Commissioner.

The checklist for building educational institutions

When it comes to building learning environments, there are a few things that companies need to consider in terms of design, construction, and project management. Patterson Building Group specialises in building in the education sector, and while it is a lucrative area to be in, it’s also one that requires a bit of extra thought at every stage.

Design

Educational buildings are designed with simplicity in mind. Along with clean lines, here are some of the key things that designers have to consider:

Space

Architects optimise the space they have to work with, but at the same time, they ensure that there is enough space for students and staff to move around easily and safely. So that crowds of people can move quickly and comfortably between different areas, there needs to be spacious hallways, doorways, administration areas, and stairways.

Accessibility

Schools and universities have to be accessible all students, including the disabled. While the entire school does not have to be easy for the physically disabled to navigate, there needs to be some parts of it that are. It is then up to the school to schedule classes in those accessible areas. With this in mind, construction companies in NSW try to include lifts and ramps in the design.

Amenities

For both the safety and comfort of students and staff, every educational building needs facilities such as bathrooms. The number of amenities should be relative to the amount of people using the buildings.

Effective setups

Part of the design process is to have good learning environments. This all comes down to the setup. For instance, at schools, classrooms should have desks for the students and a slightly raised section at the front for teaching staff.

Building

When it comes to building in the education sector, Sydney commercial builders are bound by many requirements set down by the government.

OH&S

All properly accredited building companies follow Occupational Health and Safety requirements, often known simply as ‘OH&S.’ Basically, this just means that all buildings have to be safe to use. This is to reduce the chance of injury and other health problems for occupants, as well as any associated legal issues.

Signage

Clear signage is particularly important in schools, colleges, and universities. As these kinds of institutions usually have a lot of ‘wings’, ‘departments’, and ‘blocks’, it’s important that to label them clearly to avoid any confusion.

Project Management

Project Managers have to take the utmost care when working on educational sites, especially because there may be young children around.

No disruption

Often, these projects are undertaken while the schools are in operation. The safety and continued learning of students is a priority. Sydney Project Managers have to take the time to figure out how best to work around the students without disturbing the regular running of the school. This may mean doing most of the noisy work early in the mornings, during breaks, or after hours.

Time frames

It is common knowledge in the building industry that educational institutions impose some of the shortest time frames in which to work. Usually, the schools decide to undertake construction and refurbishment during holiday periods, and as such, give the companies they hire very tight deadlines. The challenge for builders is to complete the projects to the highest possible standard within the given time frame. If they do this, as well as meet the budget, client satisfaction is almost a guarantee.

As we’ve outlined, there are many things that designers, builders, and project managers need to take into consideration when working on educational institutions. This ensures that students and staff can learn and work in great, safe environments.

The difference between tier 1, 2, and 3 building companies

Every industry has a ‘classification’ or a ‘rating’ system. Sometimes these labels are official; other times they’re just unofficial ways to describe a company’s size and abilities. For example, small companies often call themselves ‘boutique’, while larger ones make their ‘significant’ size known. While these general labels are helpful, the construction industry has a very specific rating system. Building firms are classified as ‘tier 1’, ‘tier 2’, or ‘tier 3’, and since that doesn’t really give much information away, we thought we’d explain what those terms mean.

What’s the difference?

The tier system isn’t a difficult one to wrap your head around – it’s actually quite logical. Basically, Sydney builders are rated according to their capacity to take on certain projects. The size, resources, experience, and of course, money a company has determines the kind of projects they are able to take on, and therefore what ‘tier’ group they fall in to. In layman’s terms, tier 1 companies are the big guns, and the tier 3 ones are the more modest firms. Over time, companies can move up the tiers if they fit the criteria.

Now, let’s explore the different tiers a little more.

Tier 1

Tier 1 firms are the largest, wealthiest, and most experienced in the industry. This tier is so exclusive, in fact, that there are only 5 tier one contractors in the whole of Australia! Furthermore, all 5 are run under 2 parent companies. Here’s the breakdown:

• Leighton Holdings – has Leighton Contractors, Theiss, and John Holland under its umbrella
• Lend Lease Infrastructure – controls Boulderstone and Abigroup.

These Sydney commercial builders take on major commercial projects such as motorways, railways, hospitals, universities, office towers, shopping centres and the like. They have the expertise, resources, and finances to take on such large-scale projects. Tier one contracts are usually in the hundreds of millions and even billions price range.

Tier 2

Mid-tier companies are still key players in the construction industry. As the name suggests, they are somewhere in between tier 1 and 3. As a general rule, tier 2 companies are more likely to take on commercial (rather than residential) projects. Patterson Building Group is a tier 2 company, and we specialise in aged care, education, heritage, retail, and industrial projects.

Tier 3

Now that you know a little bit about the tier ratings, you can probably guess that tier 3 companies take on the smaller projects. There are a lot more of them around, and they have plenty of work to keep them busy. Tier 3 firms usually take on projects around the million-dollar range; sometimes a little more, sometimes a little less. The types of projects they take on are:

• Sizeable residential jobs, including rebuilding and refurbishing.
• Small-scale commercial work, such as building or refurbishing petrol stations, supermarkets, offices, and places like McDonalds.

These companies are essential to the industry, and they build up their portfolio with this type of work. They then have the opportunity to start moving up the tier ladder.

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!

What makes building companies stand out in a highly competitive marketplace?

Last week we talked about what to look for when hiring a building company, focusing on essential considerations such as accreditations and price. This week, we wanted to discuss how the values of and people in a company can make all the difference to the client’s experience. There are countless construction companies out there, so what makes one really stand out? Besides the obvious reasons such as performance, there are subtle ways a company such as PBG can make their mark in such a competitive industry.

Company character

Just like people, Sydney commercial builders have ‘personalities’. Companies need to make sure that they present a positive character. The clever ones develop values or a mission statement that clearly expresses their vision. It is this vision that aligns staff, and drives them in every project. As a potential client, it’s a good idea to do your research on a company’s values before committing to them. When you’re going to have a working relationship for months or even years, it’s very important to make sure that you share the same ideals. Here at PBG, we have three key values at the core of our company: excellence, reliability, and passion. These values dictate everything we do.

Below are some further ideals that make building companies stand out:

• Authenticity – unfortunately, being genuine is a rare quality in the building industry.
• Approachability – businesses should work with you as a partner. They should be friendly, approachable, and happy to answer questions or discuss any issues. We can’t stress enough how important communication is!
• Commitment – all companies should be committed to seeing a job through to the end, and taking responsibility for every step along the way. This also includes being accountable for any errors.
• Honesty – the best companies pride themselves on being straight with their clients. Clients appreciate when companies are honest about any issues and shortcomings. Honesty plays a huge part in defining a company’s integrity and credibility.

Each staff member should reflect the Sydney construction company’s ideals and expectations. This ensures that every single project is delivered to the same standard. It is the management’s role to make sure that there is consistency across the company’s branding and performance.

Skills and training

The top construction companies take skill levels very seriously. There are a number of people involved on a building project – from engineers to labourers to project managers. Great companies hire or train people to specialise in these niche areas of construction or management. Experts are the best in their field, and hiring them ensures that every project is completed to the best possible standard. For instance, at PBG, we have project managers, contract administrators, civil engineers, architects, and site managers on staff – all of which have contributed to our successful track record.

While skills are essential, continual training is something that makes a company like PBG stand out in the marketplace. The construction industry is evolving all the time, and it’s important to keep up with these changes. There are always new techniques, tools, and regulations to learn about, and the top companies are committed to keeping up to date.

What to look for when hiring a building company

Hiring a building company is a process that requires careful consideration. If we’re being honest, the building industry doesn’t have a stellar reputation. Because of this unfortunate status, clients need to be alert and educated when they are approaching construction companies. Similarly, those companies need to be able to prove their skills and reliability. When embarking on a building project, you’re investing both money and time in your contractor. Of course, you want to make sure you will be working with the best possible partner. To help you avoid encountering any problems, we’ve compiled this guide to hiring a Sydney building company. We suggest you use it as a checklist when you’re at the initial stages of your project.

Qualifications

Fortunately, it’s very easy to find out a company’s qualifications. From a client’s point of view, a company’s accreditations are a useful indicator of how qualified they are, and what exactly they are qualified to do. As accreditations are awarded by third party boards, they attest to a contractor’s reliability and consistency. They prove that the company is genuine and accountable to someone other than their client. Finally, they give you, the client, peace of mind. Look out for accreditations such as Quality Assurance and OH & S.

Experience

When hiring a company to undertake a commercial project, experience is a major factor. We recommend choosing one that has experience with the type of project that you have. This is the best way of knowing that they have the skills and resources to do the job right. Luckily, all you have to do is ask for their project portfolio. A genuine, reliable construction company should be able and happy to provide you with this information.

References

As well as asking for proof of successfully completed projects, it’s also a very good idea to ask for recommendations. If people make the effort to refer a company, they are confirming their trustworthiness, reliability, quality of work, and communication skills. Such references will help you to determine if the company’s ‘character’ suits your needs.

Price

As a general rule, in the construction industry, you get what you pay for. Therefore, price is a very important consideration. Just like in any other industry, every company will charge according to their own fees and resources. Remember, the price does match the quality. If the quote seems too good to be true, it probably is. Projects are a long-term investment, so it’s worth spending that little bit more on a verifiable Sydney commercial builder that you know will do the job well.

Time

Make sure that the company has the time to complete your job within the given time frame. This hurdle can be taken down in the interview stage. Just ask them outright if they can meet your deadline. If they seem to be overstretched, it might be in your best interest to move on to the next one.

Put everything in writing

Repeat after us, everything must be in writing! This should not be a problem at all, and if it is, cue the alarm bells. Draw up a contract at the beginning of the project, and make sure it is signed and agreed upon before anything else. In addition, if there are any changes to the original contract along the way, put these in writing as well. Avoid verbal agreements at all costs. It’s the sensible thing to do.

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.