Flickr.com, CCL, Kervinchong

When trying to find a contractor to do some work on my house recently, I was left wondering whether there are industries where reputation does not matter. 

In most countries, building contractors are notorious for not honouring their obligations. Everybody has stories about suppliers overcharging, deadlines that were not respected and quality of work that left (a lot) to be desired. If you have never experienced this, just try using this as a conversation starter at parties – and count your blessings.

With the construction industry in a major downturn and a sharp decline in consumer spending for all-but-the-necessary, I was surprised to find not much seems to have changed. I still find myself having to chase after people to ensure appointments are kept, and work is started at a previously agreed-upon date.

So could it be that certain industries are exempt from “normal” market dynamics ? Or is there still so much work out there that contractors can permit themselves to continue doing things in their own, time-tested ways ?

Looking at industry dynamics, a third possibility comes to mind: what if poor service is just the universally accepted norm ? What if people have gradually come to expect this situation as “normal”, and resigned to the fact that this is just the way things are ?

If that is the case, what could that mean for a new market entrant that focuses on delivering superior customer service as their unique selling proposition (USP) ? Like U.S. automakers and financial services, perhaps the construction industry is long due for an overhaul of accepted business practices; and the current recession will help separate the wheat from the chaff.

True innovation often comes through rearranging previously existing elements into a new configuration. If applied correctly, I feel the following five applications of already existing ideas could really make a dent in the construction industry:

• Consumer reviews – transparent rating and evaluation mechanisms like epinions.com or consumerreview.com could help consumers find and evaluate contractors. They could exchange reviews and suppliers could be rated across different criteria;
• Auctioning sites – services like alibaba.com could help consumers find suitable suppliers in their area, with a 5-star rating scale to help you decide who to select. Consumers can put out bids for contract work, with supplier competing to get the job;
• Referral networks – a referral network like referralkey.com for contractors and other professionals in the building industry could help in building “circles of trust” where consumers and qualified tradesmen meet;
• Social media - by engaging in existing social networks and harnessing the power of social media, tradesmen could showcase their knowledge and skills and build trusted relationships with consumers.
• Sales Force Automation – Hosted CRM and appointment-setting services based on apps like salesforce.com, with strong service level agreements (e.g. callback within 24 hours) could help contractors outsource all non-essential parts of their activities and provide consumers with a “one stop shop”;

At the turn of the century, Charles M. Schwab changed the face of the steel industry by successfully creating U.S. Steel, and then moving on to create the largest independent steel producer in the world. According to Schwab, “all successful employers (“consumers”) are stalking men who will do the unusual, men who think, men who attract attention by performing more than is expected of them.”

Now if I could only find a contractor like that …