Delivering Value

In the end, customers demand value. They are more demanding than ever and it is likely they have plenty of choices. Given all the information available today from websites, blogs, Twitter, Facebook and other sources, it might be assumed that customers are also better informed and as a result can make choices based on value.

But in construction, real value can be complex. The best methods are constantly changing and the building codes are evolving as is their acceptance and enforcement. There are many ways to deliver a project,. Most likely, and as well informed as they would like to think they are, customers don’t really know the difference and as a result, they make decisions based on price.

So what is value?

There are two types; Market Value and Economic Value.

Market value is the price of something. It is the amount someone will have to pay for something when there are comparable alternatives available to them from which to choose.

Economic value is the worth of something. It includes price, but also includes those after-the-purchase cost-mitigating factors inherent in what is purchased. Economic value includes the very real, observable and in many cases quantifiable benefits a customer will receive and compares the package of costs and benefits to what they can afford to spend.

By definition, insulating concrete forms provide economic value or worth because when all the costs and benefits of an ICF structure are evaluated together there just is no comparable alternative. The decision to build with insulating concrete forms naturally provides very real, differentiated and observable benefits to a building owner while also providing the cost-mitigating characteristics that could allow an owner to afford them.

Competing on value begins with an understanding of the value for which customers will pay, from their perspective. It includes then educating them on the differentiated value that will be provided and delivering that value with undeniable quality and exceptional service as judged by the customer. Building with ICF’s makes offering and delivering greater value a customer-observable reality.

PATH HUD Cost and Benefits of ICFfor Residential Construction  (PDF)