Relationships are the Great Differentiator

The Canadian development market is still feeling the ripple effects of a pandemic-sized reality. Inflation is looming, along with supply chain disruptions and construction industry impacts. With all of these factors threatening to collide, where does it leave investors and brokers? The common thread throughout these components is the lack of control felt by market participants. Faced with a mercurial market, relationship building is more important than ever. Stabilization of the overall market is beyond any individual’s control, but stability on an individual project basis is achievable. 

Moving away from a “spot quote” mentality for each project offers more consistency in the long term. With an unpredictable financial outlook, and depending on which side of the coin you’re on, the highest bidder or lowest cost holds the initial appeal. Snapping up offers without performing due diligence on the profile of the bidder can have negative consequences further down the line. We are in a for-profit industry and we are all working towards the highest ROI for our individual priorities. However, leading with that dollar sign alone can degrade the quality of partnerships over the long term. 

The intentional cultivation of business relationships is an approach that takes time to establish, but is often the differentiating factor in a disruptive field. For an investor reviewing development opportunities, a pre-existing relationship with a developer can tip the scales in the selection process if that partnership includes a successful track record. The same mentality extends to other areas of the industry. The uptick in supply chain delays that emerged due to the pandemic forced many suppliers to prioritize customer orders due to limited inventory or labour shortages. With a long list of competing deadlines, a supplier is more likely to fulfill the demands of a long-standing partner than a vendor who frequently jumps ship. 

It’s vital to take the time at the beginning of a new partnership to get the full measure of the individual or team you are signing on with. In a fast-paced environment, the relationship building phase is often rushed or skipped over entirely. While that process may slow you down out of the starting gate, the benefits of a trustworthy business network will serve you best in that final push to the finish line.

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