THE PARAGON ANGLE: Experience and Track Record

[00:00:00] But right now, let's hear from Paragon 360 and the Paragon Angle.

[00:00:04] At the end of the day, I hope the client is buying experience and track record. The way I see it, I'm not paying the cardiologist for the 30 minutes it takes to change the heart valve, right?

[00:00:13] I'm paying them for a portion of their 36 years of experience and the track record of getting it right the first time because I can't afford a mess.

[00:00:25] Welcome to the Paragon Angle. Today, we're going to try and answer the question, do multiple bids actually lead to a better project?

[00:00:33] Wait for it, no. It's a shell game that rarely produces the quality product that everyone desires in the end.

[00:00:41] Typically, the client, architect, contractors all end up pointing fingers at each other while the client is left holding the bag on a project that never quite lived up to expectations.

[00:00:52] This can get very expensive for the client. Now, I get it. It's a necessary step for many of our church clients.

[00:00:58] We see it often because church bylaws that maybe haven't been updated require multiple bids.

[00:01:03] And we do respect leadership's fiduciary responsibility, right?

[00:01:08] The three-bid deal can work really well when we're purchasing commodities like cleaning or office supplies.

[00:01:13] But there are inherent issues with this approach when purchasing high-quality integrated worship technologies.

[00:01:19] It's not like it was 25 years ago when all you needed was a mic, some speakers, a projector, throw some words on the screen.

[00:01:27] Today, more than ever, congregations rely on technology as an integral part of the ministry.

[00:01:33] Just consider how essential streaming services have become to churches.

[00:01:36] Done right, it's literally the front door for millennials and Gen Z.

[00:01:41] There's a saying among the better AVL integrators that they want to sell the church their last sound system.

[00:01:47] That's because, strange as it seems, many churches buy two to three sound systems before they finally end up with one that works well enough to meet their needs.

[00:01:55] This happens because their first inclination was to go with the low bid.

[00:01:59] But if that system isn't designed and integrated correctly, they end up with the wrong equipment in the wrong spot and they have to start all over.

[00:02:07] Where is the stewardship in that?

[00:02:09] Unfortunately, at Paragon, we see it every week.

[00:02:12] It's ironic that the thing designed to protect the church can often do the most damage.

[00:02:18] My recommendation is to hire the right company regardless.

[00:02:22] Here are a few things to consider.

[00:02:23] Make sure you're dealing with a reputable firm that's not going to take advantage of you.

[00:02:28] In today's environment, it's easy to study a firm's reputation.

[00:02:32] The good ones are going to have pages of references, testimonial videos, and a track record of long-standing relationships.

[00:02:38] If they don't, they're probably not the right company.

[00:02:42] The most important thing is to find a firm that you can trust.

[00:02:46] Secondly, you need to consider their design expertise.

[00:02:50] There are just not a lot of firms out there doing their own design work, and that can get you into some serious trouble.

[00:02:56] Many of the firms out there, even some of the larger ones, are using copy and paste package designs, or having their manufacturers do the design work for them, or designing around select equipment that they happen to sell.

[00:03:09] Integrated design makes such a difference in the end product.

[00:03:12] I always say, it's easier to get it wrong than it is to get it right.

[00:03:16] And there's an old saying out there, if you think design work is expensive, you should see the cost of free design.

[00:03:22] Third, make sure whoever you're dealing with is providing proposals that are inclusive.

[00:03:27] The strategy for vendors doing bid work is to price it low, cutting everything out of it that actually adds value.

[00:03:34] Then there's the blame game.

[00:03:36] Blame the designer, blame the architect, blame the contractor, the building, the drawings, whatever else they can find.

[00:03:41] They have a whole book of excuses prepared.

[00:03:43] That's the game.

[00:03:44] They stand behind the, you didn't pay for that scenario.

[00:03:48] That's when the change orders fly, and guess what?

[00:03:51] Those change orders are built with a margin three times that of the initial bid.

[00:03:55] Have you seen the picture of the two boats?

[00:03:58] The small one is named original contract, but the yacht behind it is named change order.

[00:04:04] Several clients bought that guy a really nice boat.

[00:04:07] That's meant to be a joke, but sadly, it's completely accurate.

[00:04:11] That's the bid game, and the client never wins.

[00:04:14] However, this whole charade is based on more than a bit of willful ignorance, really on both sides of the table.

[00:04:21] Because the integrator bids the job at something near cost with zero value with the intention of recovering more revenue through change orders.

[00:04:28] And the client feels like they've checked the stewardship box by obtaining the lowest bid.

[00:04:34] Find an integrator who has a good reputation, does high quality design work, and hire them.

[00:04:40] Pay them well to do what they do, and they will take care of you.

[00:04:44] You want your integrator making money so they can be there to take care of you in the future.

[00:04:48] If you do this, you will probably end up with the right system for the space.

[00:04:51] You won't have to sit down and have that painful conversation with leadership and donors later.

[00:04:57] You know, hey guys, sorry, but we have to do all this again.

[00:05:01] Good news is we saved 8% on the initial bid.

[00:05:03] At the end of the day, I hope the client is buying experience and track record.

[00:05:08] The way I see it, I'm not paying the cardiologist for the 30 minutes it takes to change the heart valve, right?

[00:05:13] I'm paying them for a portion of their 36 years of experience and the track record of getting it right the first time.

[00:05:18] Because I can't afford a miss.

[00:05:19] I can assure you this, churches can't afford a swing and a miss either.

[00:05:23] Especially today.

[00:05:24] Funding is getting harder and harder to come by.

[00:05:27] They need to be partnering with someone who has a track record of getting it right the first time.

[00:05:32] For more information on Paragon, check out paragon360.com.

[00:05:36] I hope this was helpful and we'll see you on the next episode of the Paragon Angle.