The Secret of Our Competitive Advantage

Imagine you are trying to choose between two or more contractors that have similar (if not the same) capabilities, experience, and even reputation. How do you make the decision to engage them on your project? There must be something else that will influence your choice. It could be that what truly sets them apart is their Value Proposition — the unique combination of benefits, solutions, and brand characteristics that align perfectly with your specific needs. It’s their competitive advantage and your brand of choice.

The Challenge of Choice

Define a Clear Market Distinction. In the construction industry, it’s often challenging to see clear market distinctions beyond the traditional considerations of size, skills, relevant work experience, and reputation. While essential, they rarely differentiate a contractor’s unique value. Many terms used to promote brands, such as ‘Building Excellence,’ ‘Proven Performance,’ or ‘Client-Focused Solutions,’ are industry-standard marketing claims. They are generic and do little to achieve actual distinction. And low market distinction translates to lost opportunities.

Create a Compelling Value Proposition. The lack of a clear or persuasive Value Proposition is more common than not. According to studies conducted by Hubspot, around 64% of businesses have some form of Value Proposition. However, 86% of those fail to have an effective, relevant, or differentiating one. That misses the whole point. Too often, companies fall back on expected industry promotional claims or vague promises. That makes it all the more essential to create a compelling Value Proposition to ensure actual competitive distinction.

Reposition the Brand. At PMG Construction, we recognized that we needed to clearly define our brand position to ensure we would become the Brand of Choice. We needed to have a distinctive Value Proposition that would reinforce efforts to expand our client and project reach. This led to the rebranding, which we completed last year.

The Secret of Building the PMG Value Proposition

When we rebranded last year, we learned the importance of clearly defining what we stand for, our purpose, and what makes us unique. Companies like Nike, Starbucks, Apple, and many others served as examples of how to apply the best practice principles to our own brand. Our goal was to chart a path forward that would distinguish us from our competition. A unique Value Proposition was essential to ensure the kind of progress that would drive our company’s future. We committed to developing one that would be truly unique to us and relevant to our target segments. In the process, we discovered what it takes to create something that would reflect who we are, the value we bring, and how we are different.

The Four Drivers of Our Value Proposition

In our Value Proposition building process, we followed four driving principles:

1. Audience Relevance. We wanted to ensure that our Value Proposition would resonate with and be relevant to our primary audience segments. It was essential to connect with end-user owners, architects, designers, engineers, subcontractors, and many others with whom we wanted to build awareness. Our message had to be meaningful and believable.
   

2. Benefit & Value. We needed to reinforce the benefit and value we would bring to any project. It begins with completing the work on time and within budget. But there is so much more. It is about our process, problem-solving, and collaboration that add value throughout the work. Our local familiarity with building permits and inspections is just one example of how we find ways to keep a project on track.
   

3. Authenticity. It is always dangerous to try to be something that you are not. We were committed to staying true to our brand, who we are, our values, and how we work. We had to be sure that every promise we made was a promise we could deliver on. And this is what builds client loyalty. An excellent example of trust and loyalty is our ongoing relationship with Huntington Bank, which began with our very first project together.
   

4. Distinction. The most challenging aspect of the Value Proposition is differentiation. That is why it is most often a combination of things. While innovation is part of the Apple iPhone's brand, its true Value Proposition combines innovation, ease of use, seamless integration into the Apple ecosystem, and iconic design. This combination positions it as the brand of choice to its target audience. Our Value Proposition, like Apple, is a combination of attributes that are unique to us.

What Makes Our Value Proposition Different

We created a value proposition comprised of three key ingredients: (1) Who We Are, (2) How We Work, and (3) What We Deliver. The combination of these is our Value Proposition. It’s how we differentiate ourselves in the market, talk about the value we bring to our clients, and ensure that all our team members can reinforce our brand through their work.

Craftsmen of Creative Environments is Who We Are

We treat our tenant finish work in a craftsman-like approach, where we scrutinize every detail to ensure we deliver a product that will perform and endure beyond what was expected. This craftsman approach is how we translate designers’ ideas into the built creative environment that they envisioned. We also appreciate the effort and care that architects and designers take in developing designs that are both functional and creative. Our commitment is to ensure those ideas are fully realized.

Gritty, Imaginative Problem-Solving is How We Work

We take a hands-on, roll-up-your-sleeves approach to the work we do, unafraid to get a little dirty and solve real-world problems creatively, ensuring it gets done right. PMG’s projects are more than just finishing the work on time and on budget. We build for the long term, taking into account the lifetime costs of materials and construction quality that will help ensure durability. We know the challenges with increasing operational costs. Anything we can do in the construction phase to mitigate post-construction maintenance is a win for the client.

Bringing Businesses to Life Is What We Deliver

Starbucks serves coffee but delivers an experience. The work we do is more than simply what we build. It’s about creating an environment that enables people to thrive in their work. The interpretation of the architect’s vision, selection of materials, and attention to detail ensure that what we build will last for the long term. Whether it is offices, shops, cafes, or restaurants, we work to deliver an environment that brings businesses to life.

The PMG Construction Value Proposition: We are craftsmen of creative environments that, through gritty, imaginative problem-solving, bring businesses to life.

PMG Huntington Bank Project

Our Value Proposition has informed how we talk about ourselves, the language we use, what our staff says about us, and what we hope our clients will remember about working with us.

It's no secret that our Value Proposition sets us apart. Learn more about our competitive advantage and how we can bring your business to life.

If you need help with your project, just give us a call (720)-583-5585 or email us at info@pmgconstruction.com

5 Ways We Measure Progress

At PMG (Progress Management Group), Progress isn't in our name by accident or random choice. It's in our name because it is meaningful to how we work, do business and build our culture. It is foundational to who we are.

According to the Oxford English Dictionary, progress is defined as "advancement to a further or higher stage, or to further or higher stages successively; growth; development, usually to a better state or condition; improvement".

However, the technical definition of progress doesn't capture what it specifically means to us or how we measure it. So, what is progress to us? Here are 5 things we consider when thinking about progress.

1. Progress is About Shared Expertise

"The whole is more than the sum of its parts" is a great description of the expertise and skills we bring to a project. Every team member has a unique background, experience, and skill set. Individually, they provide valuable expertise and capability. Taken together, they amplify what we can do as a team. Our culture encourages everyone to share their expertise. It is a way to further the progress of the skills of those they work with. And that attitude is extended to the collaboration with our partners. It's a net gain for everyone. And that's progress.

2. Progress is About Agility

Every project has its own unknown challenges. The ability to adapt quickly is essential. This agility helps ensure that whatever the challenge is, it can be overcome. Agility keeps a project moving forward with a focus on key project objectives. And agility has proven to be a catalyst for innovation. When unexpected problems arise, creative thinking is needed to arrive at a solution. Problems are not barriers but opportunities for progress.

3. Progress is About Promises Kept

As the saying goes - "It's not the promises you make but the promises you keep that's truly important." It's what builds confidence and trust with both clients and employees. That leads to long lasting loyalty. And keeping promises is an investment in a company's reputation that enhances its image and perception in the market. Every commitment kept reinforces strong relationships that are invaluable in building long-term brand value. Reliability is one of the most important considerations in why a contractor is chosen over competitors. It's a competitive advantage. Every promise kept, every commitment fulfilled, and every expectation met is essential to the growth and progress of any successful business.

4. Progress is About Results

Results are more than just getting a project finished. Quality of work, concept interpretation, budget, sustainability, and many other considerations factor into getting the job done. While completing a project on time and on budget are important, it's the outcome, benefit, and value of the work that ultimately matter. Tenant finish work is more than just building the physical environment. It's the user experience that lives well beyond the finish date.

Projects are advanced through a step-by-step process. Each step produces an outcome. All of the steps taken together end in a result and learning. It's the results that represent progress towards meeting the initial expected benefit and knowledge to solve the next challenge.

5. Progress is About Giving Back

Progress is not just about us. It's about giving back to the community that we live and work in. Giving back is an important part of our DNA. We do this through direct contributions, sponsorships, education, and other forms of participation. It is important to share our success and our knowledge to the benefit of others in the community. Our employees feel more motivated by working in a company that has a higher sense of purpose. Social responsibility is important to our customers who share like values. And we want to build a reputation for contributing to the overall well-being of our community. Helping our community is helping it progress.

The Truth About Progress

Progress, in whatever form, isn't necessarily simple, easy, or straightforward. It often involves setbacks. It may come down to a "trial and error" approach. Experimenting with different methods may be the means to ultimately achieve success. But these are challenges that bring with it opportunities for innovation and creative thinking. It's the sort of thing that can be inspiring and motivating. And that's true progress.

What Architects Expect From a Contractor

The Architect-Contractor Relationship

At PMG, we have always had great relationships with architects. But in our industry, that is not always the case. In most cases, the architect and contractor work together towards a common goal. That’s even considering that their views on roles, responsibilities, and methods may not perfectly align. There is a lot we can learn to understand better what it takes to ensure the kind of working relationship that gets the results we all want.

The Architect's Role

The architect’s primary role, as defined by the American Institute of Architects (AIA), is to interpret the client’s requirements into a design solution that balances aesthetics, functionality, regulations, and practicality. During construction, their responsibility is to oversee and ensure fulfillment of the design intent. Architects are in a unique position during construction. On one hand, they must represent and defend the owner’s best interests. On the other hand, they must build a relationship with the contractor to ensure the work gets done right, on budget, and on time.

The Value of the Working Relationship

The success of a construction project relies on the working relationship between the architect and contractor. Both parties are vested in meeting the client/owner’s expectations. But they have different roles, responsibilities, and accountability. In most cases, the architect and contractor collaborate to bring the project to a successful completion even though there might be instances where the two might have different expectations and intentions.

The American Institute of Architects (AIA), in collaboration with the Associated General Contractors of America (AGCA), surveyed architects and contractors to better understand the architect-contractor relationship. What was working and what was not. The findings were summarized in their Architect’s Journey to Specification Study which is referenced in the insights that follow.

“In construction, two key players are positioned to act in the best interests of the owner: the architect and the general contractor. Yet, they each play a different role that often puts them at odds with one another. The supposed conflict over good design versus effective cost management is typically posited as an excuse for continued friction.”

Fulfilling Expectation Opportunities

According to the AIA/AGCA report on the architect-contractor relationship there were three key areas where the expectations between the two were different. But differences are also opportunities and understanding their respective views provides some instructive insights.

1. Design Intent

From the architect’s point of view, they want contractors to commit to the design by more fully understanding the vision behind it. This is particularly true when it comes to value engineering and material/product substitutions, in which budget and performance may not necessarily align with design intent.

“The area in which architects place the most importance with contractors, acting in the client’s best interests when proposing product substitutions, is also one of the two areas in which they are least satisfied.” AIA The Architects Journey to Specification Study

The challenge from the contractor’s perspective is that no matter how complete the drawings and specifications are, they never seem complete enough. Many of the final details are left to shop drawings, which fall into subcontractors’ design intent interpretation.

“If contractors could improve only one thing about working with architects, they would choose more complete documents and drawings. Contractors feel design intent is often unclear or documents are incomplete.” AIA The Architects Journey to Specification Study

According to the AIA study the contractor is looking for more detailed information in the construction documents. While the architect expects contractors to be more open-minded and committed to the design intent.

2. Collaboration

Every project has its share of challenges. But these provide opportunities to improve, increase efficiency, reduce costs, and save time. Collaboration is the key. Architects and contractors generally agree that collaboration will yield the best results. But agreeing in principle isn’t necessarily the same as agreeing in practice.

Where the two differ is in when and how collaboration should work. Ideally, collaboration starts in the schematic, design, and construction development phases. However, the traditional bidding process generally precludes that. This leaves collaboration for the construction phase. And where collaboration is of real value is in problem-solving and value engineering. Both parties are vested in finding better efficiency, superior product performance, and time and budget savings. However, architects and contractors have different priorities. Architects are perceived to be only design-focused. Contractors are seen to be primarily cost-focused. This is fine when they work together in a collaborative way to find reasonable compromise. But it can be a key point of contention if the two fail to meet eye to eye.

Product substitutions seem to be the sore point between architects and contractors. The best case scenario is when both work to compromise on their respective priorities to achieve design and performance objectives. The worst case scenario is when the two work independently, increasing conflict that only compromises the end result. Architects expect the kind of collaboration in which all parties compromise and agree on what is in the project’s best interests.

3. Advocacy

Who is primarily responsible for acting in the best interests of the client? The answer is complicated. In reality, both architects and contractors share responsibility. However, there are some disagreements in specific responsibility areas during the construction phase. It’s a matter of opinion as to who has primary versus secondary responsibility.

From the architect’s perspective, the contractor is primarily responsible for setting realistic client expectations before construction, ensuring the client’s budget is met, and delivering the project on time. Contractors, on the other hand, feel that meeting budget objectives are equally shared with the architect.

Architects expect contractors to consult with them on matters that impact the design intent. Value engineering, product substitutions, and changes in construction details can alter the vision of the design for which the architect is responsible. The architect is the design advocate for the project, ensuring that the client’s expectation on the project’s end result is fulfilled. Respect for the architect-contractor roles and good communication will generally meet expectations for all parties to the project.

Final Thoughts

The AIA/AGCA study provides valuable insights into the relationship between architects and contractors. It points out areas of agreement and disagreement regarding expectations. Most importantly, the study highlights opportunities to understand better each other’s perspectives, challenges, and priorities. Architects expect more from contractors, and contractors expect more from architects. It’s probably safe to say that clients expect more from both architects and contractors.

The more we understand, the more open we are, the better our expectations can be met . . . that’s progress in how we think about collaborative relationships.