Subscribe to the Design/Builders Blog

The Design Builder's Blog

Building the Right Team: How to Work With the Architect, Subs & Designers

Posted by Shawn McCadden on Fri, Feb 13,2015 @ 06:00 AM

Building the Right Team: How to Work With the Architect, Subs & Designers

Working with an architectAs a contractor, you know that building a custom home or doing a major remodel is not a one-person job. You need to work with an architect, an interior designer, one or more sub-contractors and any number of laborers—and, of course, the homeowner. Getting everyone on the same page can be the difference between an amazing house and a patchwork disaster.

 

Who’s the Boss?

The buck stops with the owner. The one who is paying for the work is the top dog, even if it doesn't always feel that way. Hurricane-torn Florida has some of the strictest construction laws in the nation, so let’s use it as our model. A full construction team may consist of an architect or engineer, a building contractor and an interior designer. The contractor may hire subcontractors. All of these people are, in some ways, like employees of the owner.

At the top of the chain is the architect. Since he or she is the one who has taken the owner’s ideas and turned them into schematics, all significant changes need to go through him (or her). These changes are done via a written document called a change order. The use of a change order is important and often costs money, so get agreement from the owner and interior designer before you issue one.

 

The Social Aspect

Working with design professionalsIn a study about collaboration, students from the architecture, interior design and construction schools of Mississippi State University were blended into different collaborative groups, ranging from highly engaged to mainly separated. The findings showed that the groups with the most social interaction had the most creative outcomes, though not the fastest completion rates.

Bring your construction team and your interior designer together for coffee and make them talk. With construction, speed is not necessarily your friend. Some jobs take time to do them right. If your people cannot find the time to sit and understand the project, then they will not have the time to do the job correctly. For example, a designer working with a contractor on windows and lighting might meet at a Shade Store showroom to point out ideas as they discuss them. They do not need to become fast friends, but they do need to work together on a creative level.

 

The Subs

Working with sub contractorsMost contractors do not have a licensed person on their team who can handle all the components of a construction job. For roofing, foundations, plumbing and electrical, they will usually subcontract to a licensed professional and or expert. In many cases, the interior designer may be a subcontractor of the lead contractor, making him the designer’s de facto boss. Whichever way you structure the construction process, you have some legal issues to handle. Make sure to meet with and manage your subs since, at the end of the day, you are responsible for paying them.

 

Paul Reyes-Fournier

 

Guest Blogger: Paul Reyes-Fournier has served as the chief financial officer for social service organizations, churches and schools. He created his own marketing firm, RF Media. Paul holds a BS in physics and an MBA.

 

 

Topics: Team Building, Production Considerations, Guest Blogs, Building Relationships, Subcontractor Considerations, Working with Design Professionals

Selling Bathroom Remodels? Talk to Homeowners About These 3 Important Aspects

Posted by Shawn McCadden on Sat, Feb 07,2015 @ 11:51 AM

Selling Bathroom Remodels? Talk to Homeowners About These 3 Important Aspects

Selling bathroom remodelingBathroom renovations make homes more modern, but the return on this investment is lower compared to other home remodeling projects. The average amount recouped from a mid-range bathroom project (those costing around $16,000) upon selling is 70 percent of total costs, according to Remodeling magazine. Kitchen remodeling projects recoup about 80 percent of costs, as do siding and windows replacements.

Contractors can do themselves and their clients a favor by helping them decide on the particulars of their projects to maximize ROI and aesthetic value. Homeowners are more likely to close deals with contractors looking out for their best interests versus one simply looking to make a profit.

 

The Money Conversation

Selling bath remodelsMost homeowners already have a budget in mind for their bathroom renovation. This is where a contractor's expertise can win the trust of prospective clients.

The National Kitchen and Bathroom Association recommends bathroom renovations cost between 5 and 10 percent of the home's total value. The bill not only includes materials and labor, but back-end expenses like supplies, legal services and secretaries. Thus, homeowners should feel comfortable and confident paying $25,000 for a bathroom remodel in a $250,000 home.

If another contractor is offering to do the same job for far less, emphasize to the prospective clients that they will ultimately get what they pay for. When contractors lower final costs simply to close deals, they are cutting costs elsewhere to make up the difference. Always provide detailed, itemized estimates, so prospects can compare your market-value offer to bargain-basement options.

 

No Rearranging

Some ambitious homeowners may envision moving the toilet where the tub once was and adding a second sink for a his-and-hers effect. But unless they have an unlimited budget, it's not a good idea.

Janice Costa of Kitchen & Bath Design News told HGTV that the quickest way to make final costs skyrocket is relocating the plumbing. A new sink in a different location means a new hot water pipe must be added. A new toilet waste pipe can add upward of $1,500 or more to the final bill. Moving the vent stack—which regulates air pressure in the drainage system for multiple-story homes—could add up to $10,000 to the final bill. Keep the existing plumbing to keep costs down.

 

Choosing Materials

Since most bathroom remodeling projects require ripping into the floor, new tile is inevitably going to be part of the job. Safety-conscious homeowners—particularly those with elderly family members—will want flooring that looks good and mitigates injury risk.

The Centers for Disease Control and Prevention estimates there are 85,000 bathroom slips and falls resulting in hospitalization every year. Tiles with textured surfaces and matte finishes are best to prevent these types of injuries. Smaller tiles with more grout lines are also recommended.

how to sell bathroom renovationsA common theme for master bathrooms these days is removing the tub altogether in favor of a spa. Of course, there are caveats when it comes to installing an indoor hot tub—for starters, they are large and difficult to get indoors, and many must be installed on a ground floor due to their weight. In addition, there could be problems with humidity levels when the spa cover is removed and floor damage if the unit leaks, according to Hot Tub Works.

When choosing faucets and fixtures, the quality comes down to the material they're made of. Brass is the most expensive but also the most durable, particularly in homes with hard water. Zinc-alloy faucets will corrode eventually and need replacing. Chrome-plated faucets are durable but require a lot of maintenance to maintain their shine. Avoid faucets with plastic cores altogether.

Homeowners know contractors need to make a profit. But the more information you give them upfront, the more they'll entrust you to do the job.

 

Brian WilkinsGuest Blogger: Brian Wilkins is an Arizona State University journalism grad who has worked as a radio broadcaster and banking industry professional. He is an independent journalist, blogger and small business owner who loves life. He lives off-the-grid and has not owned a TV in more than six years.

 

Topics: Managing Allowances, Sales Considerations, Guest Blogs, Plans and Specifications, Design Options

Important: Update Your State Unemployment Rate in QuickBooks For 2105

Posted by Shawn McCadden on Sun, Dec 28,2014 @ 05:30 AM

How to Update Your State Unemployment Rate in QuickBooks for 2015

QuickBooks Help for Contractors

 

 

For those of you running payroll through QuickBooks, it’s important to be sure that you start creating paychecks in 2015 using the correct state unemployment rate.  Although QuickBooks is capable of correcting miscalculated numbers if you accidentally neglect to update the rate prior to running payroll in the new year, it’s cleaner to be sure it’s correct right from the start.



Why is this important?

Because this rate is specific to your company rather than being a state-wide rate, QuickBooks is unable to automatically correct this rate via a payroll download. That’s why you need to make the adjustment manually.

You should soon (or may have already) received notification from your state department of labor. In some states, this form can be somewhat confusing since there are multiple figures. Often, clients aren’t sure which rate to use or where to enter it in QuickBooks.


Where to enter in QuickBook

  1. Click Lists ⇒ Payroll Item List.
  2. Scroll down the list to find and select your state unemployment item. QuickBooks usually names it using the 2-letter state abbreviation followed by Unemployment Company (as in ME – Unemployment Company).
  3. Double-click to edit and click Next twice to bring you to the Company tax rates screen.
  4. If you make the change prior to 1/1/15, you will see your 2014 rates by quarter and will need to enter the new rate in the box at the bottom called Year 2015     For 1/1 – 3/31. If you wait until after 1/1/15 (but before creating any 2015 paychecks), you will be able to enter the rate into the fields for the four quarters.
  5. Click Next until you get to the screen with Finish on it. Click Finish and you’re done.

 

QuickBooks Tips for contractors


What to enter in QuickBooks

Use the rate you received from the state. Be careful since states that have multiple taxes that are “grouped” may report the individual taxes and then the total amount. If QuickBooks calculates the taxes separately, you must enter the tax rate for unemployment without accidentally entering a rate that reflects a combined rate for unemployment and something else.

Example: In Maine we have an additional Competitive Skills Scholarship Fund (CSSF) tax that is reported and paid along with unemployment. The rate update form in Maine provides the information broken out as follows:

  • 2015  Final Unemployment Contribution Rate
  • 2015 CSSF Assessment Rate
  • Total Combined Assessment Rate for 2015


Because QuickBooks already tracks the CSSF rate separately, if your company were in Maine, you would need to enter the 2015 Final Unemployment Contribution Rate, not the Total Combined Assessment Rate.

For example, for 2015 my rates are as follows:

  • 2015  Final Unemployment Contribution Rate = 1.54%
  • 2015 CSSF Assessment Rate = .06%
  • Total Combined Assessment Rate for 2015 = 1.60%

I will be using the 1.54% rate.

I hope that helps!

Melanie_Portrait-wr
 
Guest Blogger: Melanie Hodgdon is a Certified QuickBooks ProAdvisor who has been providing financial analysis and QuickBooks training for contractors since 1994. She’s the co-author of A Simple Guide to Turning a Profit as a Contractor.   


 
 

Topics: Labor Costs, Guest Blogs, QuickBooks Related

As Construction Recovers, Look at Business Operation Tools

Posted by Shawn McCadden on Tue, Dec 09,2014 @ 06:00 AM

As Construction Recovers, Look at Business Operation Tools

Business tools for contractors

 

 

The construction industry that drives so much of the contracting business is steadily gaining throughout the nation. U.S. News & World Report reports that new home construction grew almost 22 percent in 2014. Moreover, builders themselves are optimistic, according to the National Association of Home Builders, which reports its members have seen an increase in "serious buyers."

 

This is great news for the contracting business. But with the recovery still a bit fragile and lenders reluctant to release loans, smart contractors need to be able to respond to work requests quickly. This means working smarter, including the work that runs the business. Luckily, there are tools that can let them focus on their craft and leave the business end in responsible hands, too.

 

Outsource Complex Financial Tasks

Mountain_of_pitch_book_binders-wrLots of small businesses, including many contractors, outsource accounting services like payroll and tax preparation. This is a smart move; tools like QuickBooks and NetSuite are constantly improving their services and lowering their costs. Even better, they are hosted online—in the cloud—so they can be accessed from any secure Internet site, reports Forbes. Online accounting services are very good choices for new firms and small ones that do not have a large enough accounting infrastructure to handle all functions and future growth. They're also heavily focused on security and maintaining backups of their own clients' data.

What about revenue management? This is not part of standard accounting services like QuickBooks. But managing your revenue is how your company stays afloat and can perform tasks like payroll and paying your own suppliers.

Customer management firms like Chargify have filled this important gap, providing clients from businesses of all sizes with online, cloud-based services that include:

  • Accepting payments from several sources, including ACE, eChecks, PayPal, and credit cards.

  • Issuing refunds.

  • Emails to customers that handle electronic invoices and receipts, payment reminders, and upcoming credit card expiration dates.

  • Coupons and discount redemption.


Best of all, these online services guarantee their accuracy and post solid customer ratings.

 

Go Online for Business and Legal Filings

Online legal services for contractors

Most contractors are small businesses but still have to file the same paperwork as the big guys. Unlike the big guys, they don't have in house attorneys and generally don't have time to run downtown to talk to a lawyer about filing for a business license or how to get a federal EIN.

Online legal services can help with the routine legal issues that don't involve the courts. Services like Legal Zoom and RocketLawyer provide small business owners with information and assistance that can help them understand how to address common legal topics that often arise in the course of business, such as:

  • Whether to file as an LLC, partnership, or S-corporation.

  • Steps to take to ensure corporate compliance.

  • Debt collection advice.

Subscribers also get access to common legal forms like employment contracts, cease-and-desist templates, and nondisclosure agreements. On call lawyers are available to answer general questions around the clock.

 

Go Online for Office Software

Perhaps the biggest online industry is office products like word processing and spreadsheets.

Small businesses used to shell out a lot of money for office software and then spend more on antivirus software, backup systems, and of course upgrades. They don't have to do this anymore with online services from well-known companies like Google and Microsoft.

To get Google's free online office products, just open a free Google account which includes the famous Gmail email service and more free services:

  • Online drive that stores virtually any kind of document uploaded to it.

  • Word processing.

  • Spreadsheet.

  • Presentation slide.

  • Forms.

  • Drawing tool.

If you or your office staff can't live without Microsoft Office, the online Office 365 delivers the full suite of Microsoft products, including online meeting services, upgrades, and security. Prices start at $12.50/month.

 

Ruth_Ann-wr

 

Guest Blogger: Ruth Ann Monti is the founder of TimeStorm Communications, which provides original content, copywriting, social media and marketing services for entrepreneurs and small business. She lives with her son and two dogs in sunny Scottsdale, AZ.

 

Topics: Business Financials, Technology for Remodelers, Legal Related, Free Stuff, Business Management, Guest Blogs, Software Related

Contractor Shares Sales Strategy, Justifies Emailing His Proposals

Posted by Shawn McCadden on Tue, Sep 30,2014 @ 06:00 AM

Contractor Shares His Sales Strategy, Justifies Why He Emails His Proposals

Milt Rye

 

Guest Blogger: Milt Rye is the owner of Ethan Home Repair & Remodeling, LLC located in the Greater Seattle, WA area.  Milt is a contributor to multiple construction resources, forums and discussion panels. Milt sent me the letter below to offer his difference of opinion to mine after reading my blog titled: Is A Contractor Really A Salesperson If He or She Hits Send?   

 

 

Shawn,

I thoroughly look forward to your articles, regularly take advantage of your online resources, information, and recommendations, attend your seminars, and fully embrace most everything you “preach”.  So thank you for your help in the ongoing success of my business.

That said, I am afraid I can’t totally agree with your premise that a contractor who emails proposals is just an “order taker”.  I think the approach must be governed by many factors that are geared toward that particular customer’s needs and personality. A true salesperson, in my view, is someone who can relate best to their customer, instill confidence in them, and communicate in the manner and frequency in which their customer is most comfortable.

Sales strategy for contractorsFor large ticket, complex projects face to face presentations are generally preferred simply due to the scope of the project. But if I have done my job correctly up to the point of presentation, I should already have the job. I should have already established whether they can afford the project and if they have selected my company. The bid is just a formality. Price is WAY at the bottom of issues, as is the method of delivery. For most projects, we would have already met multiple times up to the point of presentation and that’s where I do my selling. Whether I email the quote or hand deliver it is immaterial in my experience of selling projects for over 15 years. I personally prefer a face to face meeting, but have found it unnecessary in most instances and base that decision on the customer and their personality. I have never been the cheapest bidder and tell people up front that I never intend to be. Yet my closing rate/ratio remains extremely high.

 

Selling remodeling to busy clientsI find that our current speed of living in general is much faster than in the past and people get irritated with too many required face to face meetings. They most often prefer the email method so they can make a decision at 10pm after work is done, the kids are asleep and they can focus. Am I serving them or are they serving me?  I always ask what their preferred form of communication is and then I respect that.  If I have established myself as the contractor of choice, reflected in our discussions (phone or otherwise) that I have accurately heard them and understand their needs/wants, established a comfortable budget, and minded the details, why waste their time and mine with an unneeded additional meeting?  Let’s do this!

 

I am sure many contractors use email as an excuse to avoid a face to face meeting because of fear of rejection or other issues, and to hide behind the computer. They rarely follow up and basically throw mud on the wall and hope something sticks. Maybe those folks were your intended audience for this article.  

Others of us use email as one of many tools in the sales toolbox to great success and to close more deals, more often, and more profitably, than running all over the area chasing people for face to face meetings.   

Thanks again for your commitment to contractors. I just think your approach on this article was too general and did not do justice to the topic.

Regards,

Milt Rye

 

Note:

Contractor opinionsIf like Milt you disagree with something I post at my blog please feel free to let me know.  Milt did a great job explaining his viewpoint in a respectful and thoughtful way.  I must admit I agree with his approach as well.   When Milt emails his proposal he is doing so to confirm in writing the agreement he has already made with his prospect who has agreed to become a customer.  Milt is certainly not an order taker, but rather a great example for other contractors seeking to improve their sales abilities and results.  

Thanks Milt!

 

 

Topics: Sales, Differentiating your Business, Guest Blogs, Opinions from Contractors

Window Treatments Upsell and Differentiate Your Designs and Projects

Posted by Shawn McCadden on Thu, Sep 04,2014 @ 06:00 AM

Window Treatments Decoded: What to Use Where

Window treatments for contractors

 

When it comes to building a house, you've got it down. You've got your favorite brands of windows and insulation, and you know all of the best places to get quality materials. But when it comes to the finishes, making the right choices can be tricky, especially when it comes to so many window treatment options. Here's a breakdown of the various types of window coverings with the advantages of each to help make the selection process easier for your next project.  Consider adding them during the design stage to upsell your project, make your designs stand out and differentiate your offering.

 

Privacy and Plenty of Light

Cellular shades

Cellular shades are a type of hard window treatment that provide complete privacy while also allowing natural light to filter into the room. The shade's honeycomb design is constructed for maximum energy efficiency and provides a layer of insulation to help keep warm air inside. As windows typically account for 25 percent of heat loss in a home, states The Shade Store, this is an easy way to mitigate the problem while also softening up the look of the windows. Cellular shades are ideal in bathrooms, street-facing bedrooms or rooms that are prone to heat loss. While the light-filtering option is most commonly used, cellular shades also are made with heavier materials so they can double as blackout shades.


Timeless Design

Wood blinds are a safe choice of window treatment because they have a classic style that adds a rich, polished look to any room. This is an ideal option to use for a spec home or a house that's being remodeled as it has wide-ranging appeal. Wood blinds are made in a variety of wood finishes, so you can easily find them in the same material or stain that you're using in other finishes in the house. While a bit more expensive than standard horizontal blinds, wood blinds offer a higher insulation value and have a higher-quality appearance.


Form and Function

Roman Shades

 

If you are looking for the decorative impact of drapes with the functional advantages of blinds, roman shades are the ideal choice. Made from heavy, durable fabric, roman shades are an easy way to soften the look of a room. While available in lighter fabrics, most are blackout quality and are perfect for installation in a bedroom, says Houzz, or anywhere that privacy is of utmost importance. While roman shades look great, there are a few downsides. They are all or nothing when it comes to letting light in and they can be difficult to keep clean as dust accumulates.


Unmatched Elegance

Drapery brings a refined look into any room of the house. For the best results, opt to have custom drapery made. One of the main downsides of drapery is that it can be difficult to select a material that will appeal to all homeowners. HGTV suggests silk drapes to instantly wake up a dull room. Additionally, drapes can add a lot of depth as well as the illusion of height to a room. To make the ceilings seem higher and to make the room feel a bit more spacious, install the curtain rod close to the ceiling rather than just above the window.

 

Sleek Sun Protection

Solar Shades

Solar shades are the ideal window treatment option for rooms that have a lot of sun exposure. They offer UV protection while also reducing glare. This is a great option in rooms with a beautiful view, as the shades won't disrupt. One caveat is that solar shades do not provide privacy; therefore, solar shades are best in main living quarters of the house like the living room, great room, kitchen or dining room. Furthermore, this type of window treatment is a must if your clients have expensive art, antique furniture or other valuables that can be harmed from too much sun exposure.

 

Allison Wilkinson

 

Guest Blogger:  Allison Wilkinson is a WAHM, an explorer, an amateur chef and a fitness buff. You can find her Instagramming photos of her (adorable) son or researching everything from the latest parenting theories to healthy hacks for desserts.


Topics: Differentiating your Business, Design Trends, Guest Blogs, Design Options

Creating A Referral System At Your Remodeling Business

Posted by Shawn McCadden on Thu, Jul 31,2014 @ 06:00 AM

Beth Davis

 

 

Guest Blogger: Beth N. Davis is the owner and operator of BD Contractor Services where she and her team create and implement dynamic marketing plans and trainings for home improvement professionals nationwide. Visit www.bdcontractorservices.com or connect with her on Facebook.

 

Creating A Referral System At Your Remodeling or Construction Business

Referrals have long been the lifeblood of the remodeling industry.  To ensure a steady stream of referral business, you need a system. Follow the steps below and you will be on your way to creating a simple and manageable referral system.

 

Lay Your Foundation

How remodelers can get more referralsBefore you begin to build your referral system, you must first take stock of the relationships and connections that you can leverage for success. Take some time to list all of your current and past clients, individuals with whom you have a personal relationship (friends, family, etc.) and those with whom you have business relationships. Be thorough.  The quality of this list will affect the overall quality of your referral system. 

You will likely want to access information about these individuals in the future so be sure to create a database in a format that you will use whether that be a Rolodex or an app on your smart phone. I have used an Excel spreadsheet for this task for over a decade and update it weekly. From this list, go ahead and delete the names of those you would not choose to work with. Identify 2-3 characteristics of the remaining individuals that highlight their importance or relevance.

 

Take Action

How Contractors can get more referralsMaking the ask, that all important action item that takes you from plan to procedure, can be the most difficult part of a referral system for many people. This is when you begin contacting your network and directly asking for referrals. There are many ways that you can accomplish this, but, for the sake of consistency, I recommend that you rank all of your prospects and contact 5-10 per day with a personalized version of a templated message. Whoever handles your administrative functions will be able to assist you with this. 

If you want to contact all of your prospects at once, I recommend doing a physical mailing and being sure to personalize the letters. For best results, make sure that you cover three specific things in your letter: Where the person knows you from, what specific traits about them make you think of an ideal client and what type of clients you want to connect with.

Asking for referrals is like planting seeds. You may not see immediate results, but people will start to think of you as they move through the world and the results will begin to show over time. This method is meant for steady and dependable referral income.

 

Exceed Expectations

It isn’t enough to secure a referral and sign a contract. Once you have sealed the deal, you need to deliver. You and your staff should always shoot to meet client expectations but it is even more important when that client is a referral.

Remember that it is not only your reputation, but the reputation of the person who referred the client to you that is weighed here. There is no faster way to lose credibility with a client than to provide poor service for someone they have referred to you.

 

Don’t Forget to Measure

Contractors need to measure marketing resultsFind out where (and who) your new customers are coming from. Ask for feedback on service and quality and make sure that you integrate the feedback into your business practices if they prove to be relevant. Committing to constant improvement shows your current and past clients that you care.

 

Follow Up

Always thank people for their referrals. Part of your referral system should include following up with individuals who have given you referrals in the past.  Gifts and points are nice, but the real reward for these customers is your heartfelt appreciation and the ability to connect someone they care about with quality service. 

Everyone in the remodeling industry wants to work with dynamic clients who pay on time while creating beautiful projects in the process. Doing this without spending a fortune on advertising will be a reality when you look around you and leverage your relationships for maximum results.

Topics: Success Strategies, Marketing Ideas, Guest Blogs, Creating Referrals

Assuring Quality on Your Remodeling Jobs Through Craftsmanship

Posted by Shawn McCadden on Tue, Jul 29,2014 @ 06:00 AM

Jayme Cook

 

Guest Blogger:  Jayme Cook loves DIY projects and previously worked in the home building and construction industry. Jayme studied writing in Wales, UK and is now an English instructor living in Phoenix, Arizona.

 

Where Craftsmanship Matters the Most: Assuring Quality on Your Remodeling Jobs

Craftsmanship for contractors

 

 

Author and computer software consultant Robert C. Martin once said, “How can we make sure we wind up behind the right door when the going gets tough? The answer is: Craftsmanship.” This statement rings true in many fields, but especially so for remodelers. Craftsmanship is what's behind our sense of awe and admiration when we look upon a job well done—it's one part knowledge and one part art, with a bunch of pride, planning and elbow grease bringing up the rear. Every job is important, but some require a higher level of craftsmanship than others. Here's where a master's touch really counts.

 

Green Roofs

A growing trend in residential design is green roofing. These rooftops integrate actual foliage into the roof structure in an attempt to keep interior rooms cool in warm weather and warm during the cold. Most professionals use modular systems composed of individual plastic trays pre-lined with plant life and a non-soil base lined along the rooftop. Growth occurs at a rapid pace, creating an organic canopy to shield the home from the elements. A large-scale installation of a green roof requires an expert—this isn't something you want to tackle if you've no experience under your belt.

 

Insulated Water Pipes

Defining craftsmanship for remodelersInsulated water pipes will boost a home's energy efficiency. This sustainable feature will add to the life expectancy of the pipe system as well moderate the water temperature throughout the residence. Foam tubes made of rubber or polyethylene encase the metal piping to offer better quality and use—just make sure an expert does the insulating.

 

Energy-Efficient Windows

High quality, energy-efficient windows are essential in designing a masterfully crafted home. Many contractors provide windows that help keep heat inside of the home during the winter season and keep indoor temperatures cool during the summer months. Alternatively, poor quality windows can result in as much as a 30 percent loss of energy for consumers. Not all windows are created equal—while many can help reduce some of the energy loss, only high-quality selections installed with skilled precision and the proper equipment can fully protect against heat and cooling leakage. Contractors take note. Check out the windows section on the Champion Home Exterior webpage. This company displays its window offerings clearly and also provides helpful information on the left side of the site. Setting up your offerings in a style like this makes it easy for consumers to navigate your webpage and deliver the craftsmanship they are looking for from a contractor.

 

Solar Panels

More and more homeowners are requesting installation of solar panels to save money and energy. Photovoltaic panels harness the power of the sun and deliver it straight to the home on which they are installed. Solar power adds value to the property and usually comes with tax incentives, but it should only be installed by those with experience. There are lots of DIY kits out there, but we don't personally know of any that produced craftsman-like results.

how remodelers can be craftsmen

 

When it comes to remodeling jobs, there is no replacement for quality craftsmanship. From the foundation up, work of integrity guarantees high-caliber results. With the right planning, the expertise of professionals and personal commitment, your work will reflect nothing but the best.

 

 

 

Topics: Green Considerations, Differentiating your Business, Design Trends, Guest Blogs, Craftsmanship

Contemplating the Difference: Fixed Cost and Cost-Plus Contracts

Posted by Shawn McCadden on Thu, May 08,2014 @ 06:00 AM


Doug Hanna

 

Guest Blogger: Doug Hanna is president of S&H Construction, Inc. located in Cambridge MA.  His firm specializes in residential and historic renovations, custom home building, renewable energy, landscaping and site work.  Doug was recognized as the 2013 “Remodeler of the Year” by the Builders & Remodelers Association of Greater Boston (BRAGB). 

 

Contemplating the Difference: Fixed Cost and Cost-Plus Contracts

As a general contractor, I often find myself involved in good – natured arguments with some of my fellow builders regarding the advantages and disadvantages of “fixed cost“ versus “cost plus/time and materials “ contracts. There are distinct arguments for each model, depending on the type of job, the type of structure, as well as the nature and level of completion of the plans and specifications. Having used the cost-plus/time and materials (CP/T+M) contract for the last thirty years, I am somewhat biased towards its benefits.

Difference between T&M and fixed contract constructionHowever, I understand the allure of a fixed-price contract for both the owner and the contractor.  Fixed cost is most appropriate with a very thorough, well-defined set of construction documents (plans and specifications) and even more so if those complete documents are produced for new construction. In a less well-defined job with plans in progress, or in an older home, cost-plus/time and materials may be more appropriate simply because there is too much that is unknown to be able to estimate with full certainty what it will take to perform the work.

On most projects of any size, no matter which contract is used, anywhere from 50 to 90 % of the work will usually be done on a fixed cost basis by subcontractors. CP/T+M jobs are generally “open book”, meaning that the owner has complete access to estimates, proposals and invoices for the entire project. Still, there can be a somewhat more open-ended aspect to CP/T+M contracts, and some people simply are not comfortable not knowing exactly what they are going to pay up front.


Risks and rewards for both options

There are more risks for a contractor operating under a fixed price contract, but there is also the possibility for more profit.  Fixed price contractors are more likely "bidding to the plans", meaning the bid is based strictly on the plans as they are, even if they are not fully developed. This is only natural. If contractors are only getting a fixed amount, they must base their estimate strictly on what the plans show. If you proceed with a project having only rough sketches or incomplete plans, it is very likely there will be changes (change orders). The more changes there are, the more things cost, with an attendant extension of schedule.

Difference between Cost Plus and fixed contract constructionAgain, if you have fully developed plans and specifications, and especially in new construction, where most factors are known and manageable, fixed price makes sense. With phased design, where plans are being developed on a fast track as construction proceeds, and especially in renovation work, it’s my opinion that CP/T+M is the better choice.

Try to become as educated as possible on the contract options available and get a good tight set of plans and specifications from your architect. Then do your homework when it comes to the contractors you invite to bid on your project. There are excellent contractors in both the fixed cost and the cost plus/ time and materials worlds. 

 

Topics: Contracts, Guest Blogs, Opinions from Contractors

3 Ways Contractors Can Become a Trusted Customer Resource

Posted by Shawn McCadden on Tue, May 06,2014 @ 06:00 AM

Ruth Ann Monti

 

Guest Blogger: Ruth Ann Monti is the founder of TimeStorm Communications, which provides original content, copywriting, social media and marketing services for entrepreneurs and small business. She lives with her son and two dogs in sunny Scottsdale, AZ.

 

3 Ways Contractors Can Become a Trusted Customer Resource

A recent survey by Planese found the home improvement and remodeling industry earned a customer service score of 4.5 out of 7 in 2013. Not bad, but it could be better. More worrying is our industry's score for meeting expectations, which is just 36 percent. Comparatively, banking scored 61 percent, which is pretty good for an industry that isn't exactly the most popular.

A little bit of work to understand what your customers or potential customers want and offering yourself as a good resource can help you improve your customer service outlook and give yourself a competitive advantage.

 

How contractors can become a trusted advisor

First, Understand Customer Expectations

Many customers turn to online resources to find out the things they should anticipate during their remodel; usually these sites warn about delays and unexpected problems during the remodel like unusual plumbing and wiring. Dust and noise are hard to control, but this is a great opportunity to exceed expectations by taking an extra step or two and providing a little what-to-expect education beforehand.

Exceeding customer expectations is a strategy entrepreneurs should embrace, whether they run an auto repair, medical practice or remodeling business. Richard Branson, found of Virgin Group, says this is why his business stands out from the competition. If you are about to bid on a project, he says, "deliberately move your customers' expectations up a few notches and consistently over-deliver on your promises"

 

Use Your Proposal to Provide Customer Education

Begin offering customer education right from the start in your written proposal or estimate. Here are a few ideas about what to discuss that demonstrates your knowledge and experience and can help you shine:

  • Green remodelingTimeframe. It's difficult to nail this down but if you're considering a project similar to ones you've tackled in the past, provide a sample schedule. Note items that can slow things down or build in time to address them. There's nothing wrong with over-delivering by completing a project ahead of schedule because you foresaw potential problems that did not materialize.
  • Access to Specialized Equipment. Let customers know you have access to equipment that isn't part of the standard remodel kit. Provide links to specialized tools like lifts for second-story projects or insulation removal and installationExplain why they will or might be needed.
  • Discuss materials options. Customers want energy-efficient and environmentally friendly materials. Explain the differences between standard drywall and plaster, for example, and the different grades of insulation. Tell them about green materials you've worked with.

 

Don't Be Shy: Advertise Your Work

Remodeling Magazine Remodeling magazine urges contractors to advertise and enlist past customers for testimonials. Start by sending thank you notes for trusting you with their remodel and ask if they would send a review you can post on your website.

Speaking of: don't shy away from online review sites. Register with Google, Yahoo, Yelp and Angie's List, which is highly recommended for its popularity with consumers. In addition, by registering with these sites, you can respond to reviews and ensure that the information out there is accurate and complete.

 

 

Topics: Sales Considerations, Differentiating your Business, Guest Blogs, Building Relationships, Customer Relations