Latest / The Commercial Builders’ Network (TCBN) / How to Win Contracts with McCarthy Building Companies | Prequalification & Bidding
Transcript
- speaker-0: Today we're joined by Stephanie Lee, Senior Director of Community Engagement at McCarthy Building Companies. With more than two decades of experience in supplier development, contract compliance, and community engagement, Stephanie has dedicated her career to helping small businesses access opportunities and strengthen their capacity. Today, we're discussing how small businesses can build relationships with major general contractors like McCarthy. Prepare for bidding opportunities and position themselves for long-term success. This is the Commercial Builders Network where we like to say construction can change your life. And it's starting to look a lot like you. Commercial Builders Network. Power is clean speaker-1: This is the builders work. We're trusting more. speaker-0: and legacy is built. Let's get to work. Hello, beautiful people, and welcome to another episode of the Commercial Builders Network. My name is Sanisha Reed and I'm your host, and today we have the beautiful Stephanie Lee. She is the senior director for workforce and community engagement for McCarthy Building Companies. How are you, Stephanie? speaker-1: Doing wonderful. How are you doing today? I am well glad to have you. speaker-0: So great have you. speaker-1: Glad to be here. So speaker-0: We're gonna dive right in. You have been in this industry for over two decades. I'm not gonna put no emphasis on that. But you've worked for Marta as well as Atlanta Housing Authority. Please tell me, what does the passion come from for this for this petition? speaker-1: Ooh. So what initially drew me to this work was the opportunity to make meaningful difference in the success of small businesses and also the communities that they serve. So throughout my career, I've had the opportunity to work on the owner side and now the prime contractor side. And so those experiences have given me a I'll say a unique perspective on the challenges that businesses face when trying to assess opportunities. And so what continues to motivate me is seeing businesses grow. There's something rewarding about watching a company go from trying to understand how to do business with a large organization to actually win in contracts. but not only that, expanding their operations, but also creating jobs. So for me, this work has never just been about meeting participation goals. It's about helping businesses build something sustainable. So when we help small businesses grow, we're not just impacting that business owner. We're impacting the employees, the families, and the communities. So can speaker-0: Can you dive a little bit into some more specifics of what is your actual position entail in helping these small businesses? speaker-1: My role involves helping lead our workforce and community engagement strategy nationally with a specific focus on small business engagement and development and community outreach. One thing that I I want people to understand that our work goes well beyond hosting outreach events. So our team is involved throughout the project life cycle from early business development and project pursuits through pre-construction, construction, and also project closeout. We work closely with our internal partners to identify opportunities for small businesses, develop relationships with community organizations, and also support businesses in becoming more competitive. So We also focus on initiatives like our McCarthy Department Development Program and also mentorship opportunities. I often describe our team as a bridge between the business community and our project teams. So our goal isn't simply just to introduce businesses to McCarthy, is to help position them for meaningful opportunities and long-term growth. speaker-0: Awesome. So for those who may not be familiar with McCarthy Building Companies, can you tell me a little bit about the company and what is their focus as far as the type of projects they work on and their market? speaker-1: So McCarthy Building Companies is one of the nation's leading privately held commercial construction company with a long history of developing complex construction projects across the company. So we we work in several markets, a lot of markets, just to name a few. Some of them include healthcare, aviation, higher ed. Commercial. What we have focused on the past literally five years with the company as a whole is to make sure that from region to region, everyone is pretty much being consistent with their approach. And even with the work that my team does, like our processes are literally the same throughout each region. speaker-0: So with the work that you do there at McCarthy, how do you guys measure that you guys are actually having a real impact on these small businesses? speaker-1: So how we measure success of small businesses is by one after an outreach event, we want to make sure that we are introducing them to our pre-construction team. And what that may look like is pretty much scheduling a lunch and learn. So that way they can come in, they can talk about their company and then also learn about what those opportunities are. And once they learn what those opportunities are, the next step for me and my team is to make sure that we are tracking how many bids they received and if they have how many contracts they have received. And if they have one contracts with us, then at that point we track the spend on those projects because what we want to make sure is they're offered more opportunities to be able to grow their business. speaker-0: Say that we have a listener that is a subcontractor, small business that wants to do business with McCarthy. Can you talk us through the process of how do they get the opportunity from start to finish? speaker-1: Three major things. I would encourage businesses to make sure that first they learn about McCarthy, understand the markets we serve, the projects we're working on, and where your company's services may align. Second, I would say complete our pre-qualification process. It's important, it's an important step because it allows our teams to better understand. your company's capabilities, experience, and capacity. And then third, begin developing relationships with the appropriate people within our organization, particularly your workforce and community engagement lead and also our pre-construction teams. I always encourage businesses to connect with my team. But I also want them to understand that our pre construction teams are directly involved in identifying the subcontractors and also distributing bidding opportunities. So be so be intentional about the follow up, particularly with the construction team. So we're speaker-0: your bid opportunities house is it on building connect do you have to receive an invitation how does that work speaker-1: Yeah, there are several ways businesses can learn about opportunities. We host project specific outreach events where businesses can learn about available trade opportunities and can and connect directly with members of our team. We also share information with community based organizations and industry partners. So they can distribute the opportunities through their platforms, our networks, but One of the most important relationships businesses should establish is within our pre-construction team. Once again, I have to say, make sure you complete our pre-qualification process and connect with the appropriate team member and express interest and opportunities because our pre-construction team also sends invitation to bid through our building connected platform. I encourage businesses to be proactive in researching the projects that crime contractors have been awarded and or pursuing. So don't just wait on a on a bid opportunity to to to announce or to start building a relationship, but by that time, you know, you might be behind. But just just making sure that you are talking with our pre construction teams. So to speaker-0: What subcontractors, trades, and sp professional services are you typically looking for on your projects? Does it range? speaker-1: We work with subcontractors performing pretty much all the divisions, performing electrical, canical, concrete, drywall, flooring, painting, and a lot of other traits, but there are also opportunities for companies providing services such as catering, promotional items, printing services, temporary facilities. post clean in quarter potties and and other project support services. But I will say there are some some other opportunities that may exist with our larger subcontractors too. speaker-0: So you did state that you guys use Building Connected to actually take on your bits. Can you explain the process of actually utilizing that that platform? speaker-1: Yes. So Building Connected is a platform that pretty much all prime contractors use to either send or receive bids. And so that is a platform that McCarthy pre-construction team uses to issue invitations to bids. So if businesses are not registered in Building Connected, make sure to register because Once again, that is the platform in which our pre-construction teams send and also receive bids. And then also if you have questions throughout the bidding process, you're able to communicate through that platform as well. speaker-0: Awesome. So what does it look like as far as specifics on your business certifications, bonding capacity? Is there something specific that you're looking for when they're doing the pre qualification? speaker-1: So certifications can be valuable. I I will say that particularly on projects with p specific small business participation requirements, but requirements can vary depending on the project and the scope of work, but there are several areas businesses should be prepared to address. That could include safety, having a safety plan, insurance, the financial. Capacity, relevant experience, workforce capabilities, and bonding when required. Businesses should also understand their estimating process and be prepared to meet contractual expectations associated with commercial construction. So I encourage businesses to make sure that they evaluate their readiness before pursuing opportunities. You wanna be prepared when the opportunity comes, not trying to figure out your business requirements after you've been invited to a bid. So say speaker-0: that a contractor has been successful on the residential side, but is looking to switch over to commercial. Is there space for them to work with McCarthy? And if so, how should they prepare for that? speaker-1: Yeah, that's that's a great question because right now I'm mentoring a small business that is heavily on the residential side and she's trying to grow into into commercial. So first I would say understand that commercial construction can have very different requirements from residential construction. The expectations around safety, scheduling, documentation, contracts. Estimating and also financial capacity maybe a bit more complex. I would encourage that business to assess where it is today and identify the areas that need to be strengthened. That may mean investing in and estimating soft software. Improving project management processes or understanding the insurance and bonding requirements for larger projects. I would also encourage businesses to be strategic about the size of projects they pursue. Sometimes the best way to enter commercial construction is by taking on smaller scopes or partnering with an established commercial subcontractor. speaker-0: So you did mention that you'd mentor. What does that look like? Is that a McCarthy thing or is that a Stephanie Lee thing? speaker-1: I would say that it is a McCarthy thing. Yeah. Mentoring is pretty much it it gives us an opportunity to work more closely with businesses based on their specific needs. Every business is different. one company may need help understanding how to develop a stronger business development strategy while another may need guidance with a safety plan, estimating operations, or just navigating opportunities with large general contractors. So through through mentorship, what we've learned is that we can help businesses identify areas for improvement, connect with knowledge of professionals. So it may not just be me mentoring a business. I may have my VP of safety to mentor around safety planning. I may have my director of marketing to mentor around rebranding. So so we it involves it's a team effort. It's not just a Stephanie, but it's a team, a team effort. But it's it's a way for us to make sure that we're develop developing or helping the business develop strategies for their for their growth. But I also believe that with mentorship, it requires commitment from the business owner as well. They have to be willing to ask the questions, accept honest constructive feedback, and also apply what they learn. The most successful mentorship relationship are the ones where the businesses take what it learns and put it into action. And I can honestly say of all the businesses that not only myself but my team have mentored, we have first hand seen small businesses put those things into action. speaker-0: So outside of your mentorship and the events that you guys put on, how can a small business build a real relationship and thrive if they're not ready right now to do business with you all? speaker-1: McCarthy, we do have our McCarthy Partner Development Program, which we call MPDP. And what that is, is an interactive class series that focuses on optimizing the core business skills of the program participants. It's designed to deepen relationships with the McCarthy team, subcontracting partners, and position participants to better engage in McCarthy's procurement opportunities. The sessions cover the project life cycle from business development to project closeout. I I will say one of the most valuable aspects of the program is the opportunity for participants to interact with our McCarthy professionals, especially our leaders. It's just not about learning information. It's about understanding the expectations of a large prime contractor and also developing relationships. So for businesses that may be interested in participating, I encourage them to connect with our workforce and community engagement team and also watch for announcements for upcoming programs. We do this program pretty much in all of our regions, in different, I will say in different business units across the regions, but we will typically post that information on our LinkedIn page. speaker-0: So in this program, when it comes to helping people expand their capacity, where do you see the biggest gap in most of the companies? speaker-1: That's a great, great question. I see gaps in several areas, but I'll say some of the most common are estimating and financial management. Some of a business may be excellent at performing its trade, but struggle with developing competitive estimates or even managing. the financial demands of larger commercial construction projects. I would say another one is also workforce capacity, especially for small businesses looking to grow and pursue larger opportunities. A company may have the technical expertise to perform the work, but they may not have enough skilled workers to meet the demands of a project. But And I would say the the last gap I see is business development, which is why I'm glad that is one of our topics. some businesses are so focused on finding their their their next bid that they haven't developed a strategy for building a consistent pipeline of opportunities. So I encourage businesses to understand not only how to perform the work, but also how to identify the right opportunities, build relationships and position themselves for future, for future projects. speaker-0: With this program, is it like a series or is it can you hop in at any time? Like how does that work? speaker-1: Yes, it is a nine month program. there is an application process where the max that we accept from the application process is up to 15 businesses. And we have an evaluation committee that comes in review all of the applications before deciding on on those businesses to be in the program. speaker-0: You mind sharing a success story of a business? You don't have to say any specific name of the business or anything like that that you can see who came through the program, wasn't ready, didn't have the capacity, but then eventually got to the point where they're winning biz bids in business with you. speaker-1: So one example that comes to mind is a wastewater company that participated in our McCarthy Partners Development Program. After she started participating in the program, the company before had never done any work with McCarthy. I had never even heard of the company. But I will say through their participation, they had an opportunity to gain better understanding of our business and become more familiar with how to position themselves for opportunities and What makes this a success story and meaningful for me is the fact that the company went from having worked with McCarthy to secure pretty much several contracts across two different McCarthy regions. And so that's significant because they weren't limited to just one project in one city or in one market. They were able to expand their opportunities across multiple regions. And for me, that's what we want to see through our development efforts. You know, is it's not simply about getting businesses into a program. It's about helping create pathways for them to compete, develop relationships, and and to also grow. speaker-0: Awesome. So one of the main pillars of the commercial builders network is building trust. When a person doesn't receive ALK or winning a bid, I think that feedback, and I think you spoke on feedback, constructive feedback is a way to build trust. Is there any other way or how do you guys go about giving the feedback to say, maybe not now, but in the future we'll do business? speaker-1: One, I would say relationships. You you have to make sure that you have a great relationship with not only my team, but also pre the the pre construction team. Let's say a business did not did not win the pigot and what that actually looked like when it comes to not being shy about asking for a debrief. Where did where did you not meet the expectation? One thing that I feel like not only myself, but also our operations team, our pre-construction team does a great job at is when small businesses do reach out for feedback, we have to be open and honest with them because we want to make sure that they succeed. with the next with the next bid. And so so yeah, don't be shy. If you if you did not win that first bid, get a debris. So that way you can be successful in the next in the next bid. So when speaker-0: is a good time or how often should in the process a person reach out to say, I'm being consistent, I'm building a relationship, but I'm also not being a burden either. speaker-1: It it all depends on that individual person. So I'll I'll give myself as an example. I could tell you now I have over a thousand emails and and also hundreds of probably voicemails. It's it's all about learning the communication style of the person that you are following up with. What is what is their best, you know, their best way of pretty much receiving that follow-up. For me, I'll tell a company to at least reach out to me on a monthly basis. If not on a monthly basis, also making sure that you're attending our outreach events, making sure that you're attending outreach events of community-based organizations. Even like that follow-up or communication doesn't have to always be email or phone. It can also be When you see me out doing net networking events. So yeah. But I I will say just when you're having conversations with a supply diversity professional or your pre-con team, just asking them what is the best way in which to follow up. So speaker-0: What will make a company stand out to you from any other everybody's coming in want to do a good job and get the bid, but which will make say, I need to I need to see how we can get them in in in the door? speaker-1: Company that knows their business. In introduction, you're able to tell me, tell me all about your business in your in your elevator pitch. Because in the back of my mind, we're gonna know what projects we currently have, we're we're gonna know what pursuits we're going after, we're gonna even know what trade opportunities may be already available. And if you come ready. To say, hey, this is what my company does. And you come with confidence, but you're also t talking to me about who have you worked for in the past? Like, have you worked for another large GC? Now that's that's gonna get my attention too, because if you have worked for another prime contractor, then I'm like, okay. Well, we can this is somebody that I can introduce to my team because they're already doing work with another large prime contractor. So is is being prepared about telling us your story within 15, well, I'm gonna say 15 seconds, but at least within within a 15 minute conversation that I'm having with you. speaker-0: So right now I know that there's a huge workforce gap in the industry. With McCarthy being a huge company, are you guys seeing any big impact with the small businesses that you're doing business with? speaker-1: Yeah, one thing that that I have just in conversations with a lot of small businesses is trying to figure out the best way of proactively putting together a workforce plan when it comes to to workforce. And so that's a great thing about mentorship too, is when we're mentoring and we're talking to them, talking to small businesses about their pain points, workforce is one of those. And so in helping them pretty much try to bridge that gap, I talked to them about building relationships with apprenticeship programs, technical colleges, and also workforce development organizations. And these are the same steps that a McCarthy building company take as well to bridge our gap when it comes to to workforce. And so I would consider developing a strategic partnership with other qualified subcontractors too to help them meet their workforce needs. You can always partner, partner together to be able to help with that. speaker-0: That's why I love that. So your thoughts on J Ving, I assume, are that it's a must in the case that when a person isn't either ready to qualify by themselves or may need to help them either capacity-wise or need help filling the scope. speaker-1: I wholeheartedly encourage what we call teaming for sure. If a scope is too large for a small business, I tell them don't look at your peer as competition. Partner up with them. You all establish your JV and you go after that large scope. And what that does, that pretty much, help both of grow. It's gonna help both of the small businesses grow. But not only that, if if they come in doing an awesome job with a larger prime contractor, guess what? That's another opportunity for that joint venture. So yes, I wholeheartedly encourage teaming when you can. speaker-0: Awesome. So for a small business that is looking to do business with McCarthy in the next ninety days, what would be your advice to them to get started? What are three things you would advise them to do? speaker-1: I would encourage every small business owner to one get your business ready. Make sure you have your house in order. And what do I mean by that? Get your business ready by completing your pre-qualification, updating your capability statement. And make sure you understand your company's financial, operational, and also your your workforce capacity. Second, I would say learn our pipeline. research the projects that McCarthy and other prime contractors have been awarded and are pursuing. Understand where your services align when opportunity may become available. And then third, build intentional relationships, right? Connect with our pre-construction team. Attend project Pacific outreach events. And also be intentional with following up with people that you meet, but make sure when you follow up that there's purpose behind it. So if I could leave the businesses with one additional thought, I would say. Don't wait until an opportunity becomes available to start preparing for it. The businesses that pretty much position themselves today are better prepared to compete tomorrow. speaker-0: That was good. That was good right there. But the kids say speaker-1: Yeah. speaker-0: Do you have an ask? Either McCarthy, who you guys are looking to partner with, any, you know, organizations that want to support. What do you what do you have an ask? speaker-1: I would say I want small business owners to be intentional about their growth. Don't just focus on getting the next contract. Focus on building a business that can sustain long term success. Invest in your operations, take advantage of educational opportunities. the different programmings that larger primes have and also develop meaningful relationships. I would also encourage establish a relationship with your community-based organizations. Because sometimes having having that relationship with those community-based organizations, they're able to pretty much advocate on your behalf to a large company such as a McCarthy. speaker-0: So one last time, how can they get in contact with McCarthy and to make sure they're in the right place to do some business with you all? speaker-1: Yes. So I would tell businesses to visit McCarthy's website, which is www.mcarthy dot com. That way they can learn more about McCarthy. They can learn about the markets that we work in, the different regions that we are in. And I would also say there's also when you're on the McCarthy website, also pre qual. Go ahead and pre qual and and That way when you do meet with our precious team in the you pre-quall with us. And so make sure while you're on the website learning, learning more about us that you go ahead and go through that process as well. But another way of getting in contact with my team is to attend our outreach events. Like I mentioned earlier, we do project Pacific outreach events. But not only that, we also participate in a lot of community-based organizations events. And so that's another way of getting in contact with us. speaker-0: And how do they find out about the events? speaker-1: The events, once again, just following. You can follow us on LinkedIn. And also as far as events, we also share our events through the community-based organizations. Organizations such as the National Association of Minority Contractors, the National Minority Supplier Development Council. We're pretty much local members of NMSDC. So let's say for example, I'm in Atlanta. So we're heavily involved with the Georgia Business Council. But we also share with the different small business development centers, local chambers, but that's that's pretty much how we share our outreach events. But if you know your local workforce and community engagement lead, we put all of our events on our LinkedIn page. speaker-0: Well thank you so much, Stephanie, for joining us. I appreciate ya. speaker-1: Well, thanks for inviting me. Awesome. This this has been fun. speaker-0: It has.