David Rose Construction
What services does David Rose provide?
David Rose Construction is a second-generation family-managed builder focusing on contracts from around £100,000 to £1.5m across Surrey, SW London and the Thames Valley. The company’s expertise ranges across refurbishments, alterations, new-builds, extensions and conversion works. The core strengths, however, are in the Care and high-end residential sectors.
Why did David Rose Construction require CMS services?
David Rose Construction has a strong track record going back nearly thirty years. For nearly twenty-five years this was a local business with a good level of activity in smaller domestic-scale residential projects, largely worked direct for private clients and with contract values usually under £50,000. With his two sons joining the business, there was a clear need to move up-market to much larger, architect-led contracts up to £250,000 or more.
As the Senior Construction Manager David Rose was referred to CMS because he wanted to grow turnover, improve margins and create a reputation for delivering high-quality construction on a larger scale. He was very confident that the business could deliver on these contracts; what he lacked was the sales expertise and dedicated time to proactively chase targeted new project leads across Surrey and to secure opportunities to tender for better work.
He was introduced to CMS through a close friend who also ran a building company who used an embedded CMS Sales Hunter on a part-time basis. This was the ideal solution for David Rose, who was able to bring in an experienced Business Development and Sales manager at a fraction of the cost and risk of directly employing someone.
What level of service is being delivered?
The ideal balance for David Rose Construction has been two full sales days a month for more than six years from the CMS Sales Hunter who works on-site and as a full part of the DRC team. Using project leads sourced from Planning Pipe and using the bespoke CMS Prospector CRM database, this has proved exceptionally effective over the longer term.
What results have been seen to date?
With CMS support, David Rose Construction has grown from around £750,000 to around £2.5m (an ideal and profitable business level) and is regularly securing high-end residential remodelling contracts up to £650,000, and also tendering for high-end new-build houses up to £1.5m. The company is consistently receiving five or six highly -targeted opportunities to tender every month and is forging a first-class reputation in high-end residential, flat conversions and Care Home work.
M & H Steel Fabrication - Smoothing out the peaks and troughs
What services does M&H Steel provide?
Based in North Hampshire, M&H Steel provides a steel fabrication and architectural metalwork service on requirements from a single beam to around 60 tonnes. Fully CE compliant and with CHAS and ISO9001 accreditations, M&H provides design support where required together with a full fabrication and installation service across Hampshire, West Sussex, Surrey, London and the Thames Valley.
Requirement for CMS business development support
M&H is a well-established specialist contractor with a good range of contractor clients, ranging from smaller builders locally to larger firms in London. The problem was not so much the generation of new business – although that was required within a safe, controlled growth strategy – but also the smoothing out of the peaks and troughs of incoming tenders and new business. More regular work patterns certainly help to achieve better management and cashflow.
CMS support provision
Following a business briefing and discussion, CMS has provided an experienced sales professional on a part-time and highly cost-effective basis. In this case, since CMS is based very close to M&H, it has been possible to work directly with M&H as an embedded business developer for just three half-day sessions a month. Working in the M&H office as part of the team, the twelve hours of sales a month have been highly focussed on smaller to medium-turnover builders within an hour of their offices.
The project sales leads used have been tender and contract award leads sourced online from central industry sources. Using the purpose-designed CMS online Prospector CRM database together with a sharable tender log, these twelve hours a month have proved exceptionally successful in the development of highly targeted new business within specific value ranges.
Working on the basis of just three half-day sessions a month over five months – that’s less than eight days since the cold start – over forty well targeted steel fabrication and architectural metalwork enquiries have been secured. Around one third of these are requirements for secured contracts – a percentage which is steadily rising. Almost all of the tender-stage enquiries which are received are tracked through to the final contract award, enhancing the success rate from this work still further. To date these have seen over £100,000 of new business secured with many tenders and quotations still open.
Decorean - Building a sales pipeline
What services does Decorean provide?
Founded in 2010, Decorean has become a substantial and fast-growing specialist in flats and high-quality apartments conversion projects across London and much of the South East. The firm offers a full-service capability supporting all aspects of the construction and development process from site surveys and pre-construction advice to high-quality finishes. The company’s experience, expertise and relationships in the field have resulted in a varied portfolio of construction projects in the residential and development sectors. As of early 2017, major contracts include a 122-flat conversion at Bartley Wood in Hook for a specialist developer.
Why did Decorean require the services of CMS?
Like most builders, Decorean are well connected and already had a number of avenues through which work is sourced. In 2015, the company was successful in a tender for a significant project which necessitated a ramping up of the organisation. At the same time, there was a strong desire to achieve significant turnover growth which would project the business to the next level.
CMS were brought in to deliver an intensive programme of lead generation to help Decorean achieve these goals. The ultimate aim was to build a very strong pipeline of leads and opportunities while Decorean were recruiting a full-time business development role – with an aim of breaking into the public sector. Once this had been achieved, CMS would reduce its involvement and hand over much of the operation sales work direct to Decorean.
What level of service is being delivered to Decorean?
An intensive short-term strategy was put in place starting with 12 days per month to work on highly-selected project leads sourced through Planning Pipe. Two senior business development specialists worked together on this project utilising the bespoke CMS database to manage client relationships.
What results have been seen to date, what are the measures of success?
This has been a successful start. Working from a totally cold start, the first £1m flats conversion tender was secured in the first day, followed by six more again valued up to £1m each for flats conversion works over the following seven weeks. Up to forty more have been identified and are probable or promised over the next three months.
Broadway Construction – The bridge to substantial growth
Broadway Construction, originally a small £1.5m family builder in Slough, is now a successful, fast-growing £12m building contractor in Radlett – working across London and the Northern Home Counties.
When a new generation joined Broadway, the firm took the decision to substantially develop the business. Too small to justify a full-time Business Development Manager, they got in touch with David Crick, a director at CMS, to provide part-time sales and marketing expertise.
David worked one day a week in-house at their Broadway offices using Barbour-ABI project leads as the main driver for growth. Four very successful years later, David worked eight days a month, generating sales that led to a turnover in excess of £12m.
Having reached their target, Broadway was able to bring in a full-time Business Development Manager and increase their 2015/16 target to £15m.
DHT Electrical - Reshaping and growth into new sectors
Expert electrical contractors, DHT Electrical specialised in shop refit electrics. But with the shrinking of the retail sector, they urgently needed to find new business elsewhere. They decided to move into a new market sector and brought in David Crick, a CMS Director, to help reshape the business. Working just one day each fortnight, David enabled them to move almost completely out of the retail sector to focus on schools and commercial contracts in less than eighteen months. And at the same time, their turnover increased by 25 percent to £2.5m.
David explains: ‘When I started with DHT, we agreed that I would build relationships with key people in a selected group of main contractors, with a focus on schools. Using market intelligence from the Builders’ Conference, I focused on a narrow group of building contractors working within DHT’s geographical reach for school contracts up to £2m. Within months, DHT were winning a number of substantial contracts, mainly with schools and up to £200,000. Margins are not as good as they used to be, but DHT achieved around 5 – 7 percent. And importantly, the firm has work lined up for the next four months or more.’
Elmcroft – a 1000% rate of return on targeted projects
Elmcroft specialise in building and refurbishing industrial and commercial property. Over the past eight years, a Contractors Marketing Services Sales Hunter has been working with them part-time, two days a month generating business from new leads and developing long-term relationships with architects, building surveyors and developers. As a result, Elmcroft have enjoyed a regular pattern of successful tendering, and have a consistently profitable turnover of £2.5m – £3m.
Colin Barnes, Senior Construction Manager at Elmcroft, credits CMS as a key element in their success. Although a Sales Hunter is only in their office one day every fortnight, they estimate 70 percent of their work comes through this concentrated focus on sales.
Over the past year, CMS has brought in more than 30 highly targeted opportunities to tender, with over £2.2m won so far.
Our Sales Hunter explains the success comes from careful targeting: ‘I use ABI sales leads for projects in London and the northern Home Counties, and focus particularly on work within Elmcroft’s preferred areas of expertise. This has resulted in a number of excellent contracts including a £600k warehouse and a £1m cold store.’
At the same time our Sales Hunter is nurturing good, long-term relationships for Elmcroft with a number of key work providers, including Chartered Building Surveyors and developers for dilapidations. This has resulted in repeat invitations to tender and win new work.
Elmcroft estimate that, given the net margin on the work our Sales Hunter has brought in, CMS has produced a return of over 1000% on what it costs to have us on board.
Architects Practice – Targeted marketing to develop key accounts
CMS worked with a substantial multi-disciplinary architectural, building surveying and engineering practice in the South-East of England.
The practice has enjoyed success in a number of construction sectors for many years, but saw the need to invest in active marketing to develop new clients.
A senior CMS Consultant was brought in 3-4 days a month to help the firm develop a strategy for new key accounts. Over the last eighteen months, our consultant has focused specifically on four key areas : education, healthcare, housing associations and the reactivation of old clients.
Despite funding cuts and uncertain organisational structures, our consultant has generated new commissions and a steady flow of meetings with carefully selected, high-potential work providers in all of the targeted sectors. And the practice is now set to secure substantial new business when the economy recovers.