Pastors and Construction Managers:
What each wishes the other knew

By Kevin A. Shaw

If you are a construction manager, understanding the perspective of your client (in this case, the pastor and his committee) is crucial to success. If you are a pastor, understanding your construction manager's goals and business plans can help you successfully manage yet another complex relationship that has become part of your life.

Attention, construction managers!

Church is not a "business" in the traditional sense. If you represent a general contractor and/or a construction manager, and you are about to lead a new church construction project, take the time to understand the structure and mission of your client.

The church you are now building for does not obsess over profit and loss statements. They do not launch new product lines. They are not concerned about hostile takeovers and market share. Therefore, your new client's decision-making process may be slower than your private sector clients.

"If there is one thing I could tell construction managers to remember when working on a church it's this: churches do not have a single person in authority who can always speak on behalf of the organization," says Rick Hawks, senior pastor of The Chapel in Ft. Wayne, Ind. The Chapel dedicated a 45,000-square foot facility in 1998 and is now fundraising for a 35,000-square foot addition. Hawks notes that construction companies need to understand everything from church culture to constitutions.

"Oftentimes there are committees that need to be reported back to, and many churches have requirements that require two weeks notice just to call a business meeting," Hawks says. "As well, many construction companies are used to dealing with an owner who makes a decision immediately. These kinds of decisions typically take much longer for a church to make, and rightfully so."

One thing your church client does share with the business world is this: a church has many shareholders (the congregation) that have an important voice in the direction of the new facility. These shareholders may own dramatically different "shares of stock," but they usually all get to cast the same vote--one each--in the direction of the building plan. As best you can, think of each one of them as your client and treat each with equal respect and courtesy.

Don Denyes, senior pastor of South Baptist Church in Lansing, Mich., agrees. South successfully dedicated a new, 62,000-square foot facility last year, and Denyes says each member of his congregation needed to feel included in the process.

"A successful construction manager needs to understand that there are many people vying for input in a church building program," Denyes explains. "In the worst sense, it can be viewed as a monster with many heads. Every member has the right to feel like he or she is the owner. It would not be uncommon for the project manager assigned to the job to be wondering, 'Who is the person I go to for a final decision?' The dynamics of a church are quite different than that of a business."

That dynamic also leads Denyes to say that a construction company that has some church construction experience can be significantly better than one without it.

"What the experienced church builders often bring to the table are many ideas we may have never considered," he says. "They'll have experience dealing with the many people competing for input, the complexities of needing to get congregational votes, et cetera. Previous experience is crucial. Just because you can build a Sam's Warehouse doesn't mean you can successfully build a church."

Hawks agrees: "I think that the size of the church should be proportionately mirrored by the size of the construction company. When the size of your project and size of your contractor match, everyone wins. If your contractor is building a $5 million church and he's also building a $50 million building, it may be hard for him to treat you as important as the other guy."

Attention, pastors!

Your construction manager is not a non-profit agency. As the quote goes, "The business of business is business." In simple terms, this means that the owners/proprietors of the construction companies you will be interviewing are attempting to make their companies profitable.

We will leave the finer points of capitalism for the academicians and theologians to discuss. In a few moments, we will point out why a construction company needs to be profitable. (In fact, churches should want to work with a profitable construction company.)

The construction industry is very competitive. Contrary to assumptions that construction companies are always extremely profitable, the reality is that most operate at a net profit of about one- to two-percent after all is said and done. Simply put, this means the $5 million facility that company "X" built probably yielded him a $50,000 profit. And that potential profit can be quickly erased with the smallest of errors.

"Sometimes it is difficult for a pastor, whose whole job revolves around the spiritual nourishment of his people, to understand the risk that we as construction managers are taking," says Craig Wieland, president of the Wieland-Davco Corporation, in Lansing, Mich.

"The potential for profit is exciting for the entrepreneur in us, but that has to be accompanied by a stomach for juggling risks that revolve around millions of dollars," Wieland adds. "If there is one thing that I would want the pastors of the churches we build for to know, it would be that most of us are in this profession because of a passion for building beautiful buildings, not to make a huge profit."

So, just why might you want to hire a company with a healthy financial standing? "Bonding is a big issue for us," Wieland says. "Our insurance companies want to know that we have cash reserves that can back up any catastrophes we might undergo. Employee retention is also critical. A company that is not profitable cannot recruit and retain the kind of excellent employees required to build first-class buildings."

Run in any circle of pastors and you are bound to find one with the following story: His church hired a construction company because they were the lowest bidder. They were halfway through a building program when the construction manager went belly up. Today, that pastor sits with a half-completed project while his CM files for bankruptcy. Construction companies that calculate reasonable profits for themselves can usually avoid these scenarios, and this should give pastors and their congregations reasons to consider healthy construction companies.

Dale Bramer, Senior Vice President of Erhardt Construction in Ada, Mich., has been involved in many church construction projects. He is currently finishing off a $21 million church facility in Holland, Mich. He offers the following analysis of his work with churches.

"No client--even if it happens to be a church--cares as much about what you know about the construction process as they do about how much you know about them," Bramer says. "Do your homework. Whenever we talk to churches, we try and spend a lot of time listening"

Bramer encourages churches to think through some of the most difficult questions before getting too far into the process.

"I always hope that church committees have thought through a few very critical issues," he says. "And perhaps the most critical issue is what is on your wish list and what is on your must-have list. Let's prioritize those issues so that we never lose track of what we absolutely must have versus what we think we need."

"Perhaps the one thing that can really frustrate a CM is trying to maintain the budget," he adds. "We may bring an issue to a church committee, and they know they cannot afford it but they want to keep adding things. Sometimes we as CMs have to continually remind folks, 'Your budget cannot afford this element.' "

Bramer also agrees with other construction companies who believe that the construction partner in a church project should be brought in very early in the process. In fact, Bramer says he believes the CM is the first person who should be hired.

"I would tell churches, 'Don't get your drawings done until you have hired a CM.' When (the CM is) brought in early, we can visit other churches, establish the owner's standards, address cost issues, et cetera."

Wieland agrees and says that the best scenarios are those in which an architect, an owner and a CM team up the very beginning of the process.

"Each member of the team is important," Wieland says. "The architect will come to the table with great ideas and a lot of creative energy. The CM can bring practical experience to the table, and can more easily predict what these ideas may cost since he is usually very in tune to the local work force. Then the owner--or in this case, a church committee--can make responsible decisions, knowing that they are meeting project and material goals and that they are also on budget."

Both Wieland and Bramer say that the CM should be available for important church-wide meetings. "There can never be too much communication," he says. "It is so critical that the committee stays in touch with the CM."

"We often sit at the front of the church with the building committee when we are hired as CM," Wieland adds. "This church has shown significant faith in you by hiring you. When they begin to get asked technical questions about the building process, the CM should be the one who steps forward with the correct answer."

The bottom line is that churches need good construction companies, and construction companies need unique clients like churches. Even though they may come from different worlds and have drastically different goals, there are many success stories featuring both happy congregations and healthy construction companies. By understanding who is sitting at the other end of the table, you can set the stage for a successful building campaign.

Kevin A. Shaw is Director of Marketing at the Wieland-Davco Corporation, a construction management company in Lansing, Mich. E-mail him your comments at Kevin.shaw@wieland-davco.com or visit www.wieland-davco.com.