How To Create a Killer Trade Council So Your Company Becomes The “Builder of Choice”

If you haven’t been faced with a shrinking pool of Trades and Suppliers in your area, consider yourself extremely lucky! Home Builders across North America have been reporting alarming numbers of delays in construction cycle time (and quality) based on who’s left to choose from.

And that shrinking pool of Trades and Suppliers means that you must get savvy and go the extra mile to retain, attract, and grow the best group for your homebuilding company.

Forward-thinking builders are using this opportunity to adopt a new approach to do just that. They are creating Trade Councils to foster better communication, engagement, and shared decision-making. Creating a council with trade contractors can be a game-changer – revolutionizing the way construction projects are executed.

Here’s a secret you should know. Most Home Builders often don’t find the time to (or have the interest to) create a Trade Council.

Spoiler Alert: Being the first or only Home Builder in your area to establish a Trade Council is great news for you! When done right, you’ll be taking the lead to be the “Builder of Choice” that Trades and Suppliers will flock to.

In this blog, we explore the reasons why you should establish a council with Trade Contractors and Suppliers as soon as possible, and I’ll give you some steps on how to create and manage it effectively.

What Exactly Is a Trade Council?

If you’ve read this far, chances are pretty good that your interest is piqued (and your ego is checked at the door) to consider exploring a Trade Council for your Company.

But you might not really recognize what a Trade Council is. Don’t worry. You’re not alone. Many Home Builders think that a Trade Council is just a “big ‘feel good’ meeting that lets Trades/Suppliers know we value them.”

You know…all talk…no real substance. And Trades/Suppliers will attend the first one (and maybe a second one), but they’ll quickly pick up that you’re just trying to check a box and “look good” in front of them.

A Trade Council is a formal group made up of your Trades/Suppliers (run by the Trades/Suppliers) to provide constructive feedback to your Company to improve operations, schedule cycle time and quality of construction.

But you need to be sure you’re truly read to take this step. After all, it means that you need to be serious about listening to your Trades and Suppliers and making changes in your business based on the feedback you receive.

Honestly, it can be a tough pill to swallow for some. After all, you are inviting your Trades and Suppliers to tell you where your Company is inefficient (and/or ineffective). Stick with me, and I think you’ll see the benefits are worth it!

The Benefits of Establishing a Council

“What’s in it for me?” There’s a good chance that you may be thinking this. And that’s perfectly normal. After all, you have enough to do every day. If you’re going to invest some time and money into something new, you want to be sure you’re getting a decent Return on Investment, right?

Here are just a few of the benefits your Company can achieve by establishing a successful Trade Council:

Enhancing communication and collaboration

One-way communication – where the Home Builder dictates how things will be done to Trades/Suppliers – is dead. Listening to what is happening to those who are doing the work with you (and making changes based on that feedback) will get you farther than your competitors.

By establishing a Trade Council, home builders create a platform for open dialogue, allowing trade contractors to express their ideas, concerns, and suggestions. Regular meetings, both formal and informal, can foster collaboration, facilitate problem-solving, and promote a culture of transparency.

Shared decision-making

As I mentioned earlier, inviting Trades/Suppliers to give real feedback on your operations can be intimidating (and ego-crushing); however, involving trade contractors in the decision-making process gives them ownership in the overall process by recognizing and respecting their expertise.

When trade contractors have a voice in project-related decisions (and see you making changes based on their feedback), they feel valued and engaged. This results in increased dedication and commitment to delivering high-quality work.

Building trust and loyalty

Creating a council demonstrates trust in trade contractors' capabilities and expertise. It signals a willingness to work together as partners, fostering a sense of loyalty and commitment.

Don’t forget. Trust is a two-way street, so make sure you are truly involving trade contractors and making the necessary changes to improve the issues they bring up. Only then will you gain their trust and build long-term relationships that can lead to repeat business and referrals.

Improved project efficiency

When trade contractors have a seat at the table, you are also able to discuss your company’s goals and issues. This gives Trades/Suppliers a deeper understanding of your company’s goals, constraints, and challenges.

This enhanced awareness enables them to align their work more effectively, anticipate potential issues, and proactively contribute to finding solutions. And, by leveraging their specialized knowledge of best practices and trade contractor management software, builders can optimize project timelines, reduce delays, and enhance overall efficiency.

Continuous improvement

An effective and well-run Trade Council provides an opportunity for ongoing evaluation and improvement. Each incremental improvement you make means more money in your pocket (and the pockets of your Trades/Suppliers).

Regularly seeking feedback from trade contractors allows builders to identify areas for enhancement in processes, workflows, and project management. This feedback loop fosters a culture of continuous improvement, driving innovation and refining practices over time.

I hope this list of potential benefits has you excited about starting your very own Trade Council! Once your Trades recognize that you are truly interested in improving their companies as much as you want to improve your own, you’ll be on your way to becoming the “Builder of Choice” in your area.

But how do you get started? Keep reading!

How to Create and Manage a Council with Trade Contractors

OK. Now you understand WHAT a Trade Council is, and you’ve decided to start exploring the creation of a Trade Council for your homebuilding business. So, where do you start?

Creating a Trade Council is much like building a house. Plan effectively first. Then start building it. Here are 6 Steps you can follow:

1. Identify Key Trade Contractors: Select 3-5 Trade Contractors who have a proven track record, share your values, and demonstrate a willingness to participate actively. Make sure they are leaders on the job site that other Trades look up to. These will be the Trades who will be the first Board of Directors.\
2. Establish Clear Goals of the Trade Council: Define the purpose and goals of the Trade Council and have these clearly listed for all to see (and easy to measure). Common objectives include enhancing collaboration, improving communication, and fostering innovation.
3. Define Council Structure: Determine the council's composition, meeting frequency, and roles and responsibilities of participants. Consider rotating representation to give various trade contractors an opportunity to contribute.
4. Encourage Active Participation: Create a supportive environment where trade contractors feel comfortable sharing their insights and opinions. Encourage open dialogue and value the contributions of all council members. Remember, they are managing this – not you.
5. Set Agendas and Action Items: Develop meeting agendas with input from council members, focusing on specific topics and actionable items (that can easily be monitored for progress). Assign responsibilities for follow-up actions to ensure progress is made.
6. Provide Resources and Support: Offer the necessary resources, such as meeting facilities, tools, and technology, to facilitate effective communication and collaboration.

I hope you can see that creating a Trade Council with your Trades/Suppliers is worth the effort. Mutual respect and interest in improving each other’s businesses goes much further than you can imagine. And being the first (and/or only) Home Builder in your area makes the benefits even greater!

Need some more help putting yours together? I’d love to help! Just reach out at bhaubert@ecisolutions.com.

To learn more about Brad Haubert, take a look at his LinkedIn, Facebook, or website. To learn more about building your killer trader council, check out the WebClass here.

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