Issue link: https://industrialmanagement.epubxp.com/i/249982
landscape into a buyer's market. When jobs become scarcer, companies start going after projects that they would have spurned before. Typically, the end result is a price-focused environment in which businesses try to underbid each other, and profit margins are squeezed. This continues to be a challenge today. Many clients are focused primarily on price, often at the expense of quality. Many companies that used to base choices on qualifications and past relationships now are looking to hire the lowest bidder. Even corporations that have longstanding relationships with clients still have to compete on cost. But the pressure to drop prices isn't necessarily the best solution for either the enterprise or the client. Cutting corners rarely leads to good work, and unforeseen problems with barebones bids often can lead to change orders and other unforeseen costs. Anyone who has tried to complete a job on the lowest bid or who has hired the lowest bidder knows that this can turn into an expensive option. So, how can companies attract cost-conscious clients without undermining the quality of their work? One way is to be more creative about packaging services. As design professionals, it can be tempting to recommend project expansions and other improvements. However, when resources are tight, it often makes more sense to focus on offering only what the client is asking for, not what the design team thinks the client needs. Expanding a proposal beyond the client's initial expectations doesn't make good business sense at a time when those clients are trying to squeeze every cent out of that design. Another way enterprises can position themselves ahead of the competition is to become indispensable by providing added value. One of the best ways to do this is by helping clients identify and access alternate funding sources. Many federal and state programs provide funds for infrastructure and economic development. For instance, in recent years governments at all levels have made a massive push to promote sustainability. Obviously, many of the projects on which architectural and engineering companies excel revolve around sustainability, or at least have sustainable elements. Often, government grants designed to promote more effective environmental stewardship can be accessed to provide funding for engineering projects that have a definable and achievable sustainable element. Likewise, many federal and state agencies seek to promote economic development by supporting projects that hopefully create jobs. Often, as The pressure to drop prices isn't necessarily the best solution for either the enterprise or the client. with the infrastructure development elements of the federal stimulus program of 2009, those grants are designed to provide short-term jobs for designers and construction personnel. However, many programs, particularly at the state level, focus on long-term employment. Often, new development can be tied to long-term economic benefits by providing facilities and infrastructure to support permanent jobs. Local officials sometimes don't recognize that their proposed developments might qualify for grants designed to promote long-term economic development, and companies can provide added value by directing clients toward these types of funding programs. Company executives also have opportunities to think outside the box to help clients find funding for their projects. For instance, would you think to look to the U.S. Department of Agriculture to help fund an infrastructure project? Well, part of the USDA's mandate is to promote rural development, and the agency has a number of grant and loan programs that can be used to help pay for engineering projects of all types in rural locations. There are many examples of nontraditional funding sources, and combined with the process to secure such funding, engineering enterprises can provide important added value by knowing where money can be found for their clients' projects. Another way that architectural and engineering companies can provide added value and become indispensable to clients is to serve as an intermediary between private developers and public agencies to foster partnerships between the two. Developers and local government often have a contentious relationship, but public/private partnerships can make sense. Private developers and their consultants can bring more creativity to design while public agencies can provide flexibility over zoning issues and handle the transportation infrastructure required. january/february 2014 29