Client Retention in the Real Estate Industry: Why Strong Relationships Matter

Real estate development is a complex field to navigate, with many variables to consider and a wide range of potential risk factors. To mitigate these risks and ensure projects meet a higher standard of quality, technical skills aren’t enough. Throughout my experience in project management and client representation, I’ve come to appreciate that client partnerships aren’t just about fulfilling scope requirements and contractual obligations: they’re about cultivating strong relationships that can stand the test of time. By rethinking our approach to project management and adopting a more customer-centric model, we can create working relationships that equally benefit both clients and service providers.

Becoming a Trusted Advisor

Construction projects reflect the unique needs of the client, so naturally they want to seek partners who truly understand those needs. This goes beyond just understanding the feasibility study and project brief though: it involves an in-depth comprehension of their ambitions, fears, predispositions, and operational capabilities. When clients feel understood, they are more likely to trust their partners and engage in open communication. This trust is crucial, especially when navigating the complexities that arise during a construction project. As such, many consultants aspire to be seen as trusted advisors by their clients,

 This begs the question: what exactly does it mean to be a “trusted advisor” in the first place? For me, it goes beyond simply providing advice: it means taking ownership and accountability for the project’s success. A trusted advisor is proactive and ready to go the extra mile, even when times are tough. They are collaborators, eager to work closely with clients to devise the best solutions to their problems. Above all, being a trusted advisor entails a commitment to open and honest communication. This includes delivering difficult truths in a timely manner and in a way that resonates with the client, ensuring they are receptive to the message.

The Power of Partnership

To build the kind of relationships that allow for effective collaboration in real estate development and construction, companies must rethink their approach to project management and client partnership. In an industry often viewed as adversarial due to the nature of its contracts, professionals are actively developing procurement strategies that promote collaboration and teamwork. Three models that exemplify this approach are Framework Agreements, Integrated Project Delivery (IPD) and NEC contracts. These models have gained traction in recent years as a means of enhancing collaboration and improving project outcomes.

Framework Agreements

Framework agreements between clients and professional service consultants offer significant advantages, particularly in terms of speed of onboarding and overall efficiency. By establishing pre-negotiated terms and conditions, these agreements eliminate the need for repetitive contract negotiations each time services are required, allowing for quicker procurement processes. This streamlined approach not only accelerates the onboarding of consultants but also fosters long-term relationships, which can lead to improved service quality and consistency over time. Additionally, framework agreements can result in cost savings through standardized pricing and reduced administrative burdens, enabling clients to focus more on their core activities rather than on contractual formalities. The clarity provided by these agreements also enhances project management, as all parties are aligned on expectations from the outset, thereby minimizing potential misunderstandings and delays.

Integrated Project Delivery (IPD)

IPD is a collaborative project delivery method that integrates people, systems, business structures, and practices into a cohesive process. It aims to optimize project results and maximize efficiency by encouraging early involvement from all key participants and establishing a shared sense of risk and reward. By aligning incentives among all parties—owners, designers, contractors—IPD transforms projects into networks of commitment, ensuring that everyone is fully invested in the project’s success. This approach leads to improved project performance and reduced waste throughout all phases of design and construction

NEC Contracts

Similarly, NEC contracts promote a spirit of mutual trust and cooperation among all parties involved in a project. NEC is a family of contracts that facilitates the implementation of sound project management and encourages contracted parties to act in a spirit of mutual trust and cooperation. These contracts encourage collaborative working relationships by emphasizing proactive risk management and continuous improvement. One key factor to their success is the use of Integrated Project Teams (IPTs), which are teams formed from the client's project team and a team of consultants, constructors, and specialist suppliers. IPTs allow for the seamless integration of design and construction activities, ultimately leading to better decision-making and enhanced project delivery.

Although IPD and NEC contracts are not yet prevalent in the Middle East construction market, and widespread adoption may still be years away, we, as project advisors, should begin to advocate for the integration of key principles from these models. By doing so, we can lay the groundwork for more collaborative and effective project delivery in the region.

A Client-Centric Approach in Competitive Markets

The more collaborative and customer-centric approaches aren’t just more efficient than more traditional business models: they are also an increasingly valuable competitive advantage. In regions like the GCC, particularly in countries such as the UAE and Saudi Arabia, competition in the construction industry is fierce. Adopting a client-centric approach is essential for standing out in a crowded marketplace. By prioritizing client needs and preferences, service providers can differentiate themselves from competitors who may prioritize cost over quality or relationships.

Besides, at the end of the day, we’re all people. We tend to appreciate it when experiences are tailored to our personal preferences. Think about your favorite hotel where the staff knows your name and preferences. This level of attention makes you feel more valued and more likely to return. The same principle applies in real estate: going that extra mile—whether through personalized communication or tailored services—can significantly enhance client satisfaction and loyalty.

Ultimately, strong relationships lead to successful projects—and that’s what we must strive for in this ever-evolving industry.