The ability to effectively communicate with clients and form a trusting relationship is crucial for successful contractors. However, disputes often arise between the two parties. This week, we'll speak with contractors and customer relationship experts to find out how contractors can best deal with a difficult customer.

What policies and philosophies can contractors employ to increase the chance of a successful relationship through the course of a project? Is the customer always right? Can some customer relationships become so toxic that there comes a time when it's better to just let it go? We will explore these topics and more in our feature article on Tuesday, March 22.

AIA billings index — March 23

The American Institute of Architects will release its Architectural Billings Index on Wednesday, March 23. Last month, the AIA reported the index fell to 49.6 in January, down from the upwardly revised mark of 51.3 in December. The January score signaled a decline in design services, as any score above 50 indicates an increase in billings. 

AIA Chief Economist Kermit Baker cited overall "rocky" conditions in the economy as contributing factors to the decline. Baker added, however, that he is optimistic about the upcoming year, as "the fundamentals are mostly sound in the nonresidential design and construction market." 

The ABI is a significant report for the commercial construction industry, as it serves as an indicator of future construction spending — with a lead time of about nine to 12 months — as design services lead to new commercial projects. 

New home sales — March 23

The Commerce Department will release new home sales data for February on Wednesday, March 23. Last month, the department announced new home sales in January dropped 9.2% between December and January to an annual rate of 494,000.

The dip in new home sales was led by a steep 32.1% decline in the West — likely the result of the region's lack of inventory and sharp rise in home prices. Concerns regarding price gains have continued to grow in the residential industry, as analysts have warned the lack of affordable options for first-time buyers continues to push prices up, pricing many potential buyers out of the market.

So far, housing market reports for this month have been mostly optimistic. Homebuilder confidence held steady at a score of 58, and housing starts rose 5.2% in February to a 1.18 million annualized rate.

Will Wednesday's results keep up the positive trend of positive housing reports this month?

Public-private partnerships have seen a surge in popularity recently, particularly with large infrastructure projects. A P3 is often seen as a way for government agencies to shift risk to the private sector, and as a way to take advantage of the private sector’s ability to obtain financing and conduct operations without having to deal with as much bureaucratic red tape.

According to a Moody's Investors Service report this month, the U.S. market for P3s is ripe for growth and could become one of the world's largest. In our feature article on Thursday, March, 24, we'll speak with experts to find out if the touted benefits of P3s — faster delivery and cost-cutting — have materialized, as well as what barriers — regulatory or otherwise — still exist that are hindering wider implementation.