Forums: Discussions for entrepreneurs and small business.

I am obsessed with customer service lately. I think I might be becoming one of those consumers who EXPECTS to be treated a certain way. Maybe it`s because I spend so much time here at StartupNation advocating the best business practices and how to become successful.

In any event, like my post about waiting in the Doctor`s lounge, I also have some recent experience with home builders and related contractors.

First a disclaimer - the process and trade skills of building a home totally fascinates me - i love the nature of the work immensely. It`s creative, it`s about strategy (sequencing), it`s tangible, and it`s filled with dreams and visions of a future that come to life upon completion. Also, there are very high quality people in the business of construction.

But what I noticed on my project and have heard about so many others--to a person--is that building a home can also be a miserable process. More often than not, the contractor and subs have nowhere NEAR the level of care or concern for a quality end result as the customer. In fact, it seems like "cutting corners" (no pun intended) is institutionalized in the sub-contractor world. And the subs are part of a club where there`s a CYA code in place...

I`m looking for perspectives about the home construction trades/entrepreneurs and for any ideas and recommendations that would clearly make their business one that is known for excellence in customer experience, rather than the seemingly rampant view that building a home is the most stressful experience you can have... also referred to as, "a nightmare..."

i hope we can assemble some great advice here...


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Rich Sloan , Co-Founder, Chief Startupologist, StartupNation

Rich,

I have had similar experiences in the past, as have many others, which led me to start my own company whose goal it is to provide a great customer experience in working with home improvement professionals.  As you already know, the world of working with contractors can be pretty sketchy.  The key is to find contractors who are not only excellent at their trade, but equally as good a business person and communicator.  The actual physical work is only part of the puzzle, scheduling, project management, relationships with their subs, knowledge of city zoning and permits, etc., are just a few of the pieces that need to come together to make a project work.  The one thing that is really the differentiator between a great and a poor experience is the flow of communication between the contractor(s) and the homeowner.  The ability to listen to what the homeowners needs are and translate that into a style of work is important as well as keeping them appraised of any problems, delays, changes in a timely manner.  It is rare that a project runs 100% smooth without a single hiccup, but it is how those are dealt with and communicated that make the difference.  There are great contractors out there, as I have found, but there is also a huge sea of mediocrity that seems to plague this industry like no others.  Showing up on time returning phone calls promptly and keeping an open line of communication with the homeowner go a long way in making the experience an overwhelmingly positive one.  You really have to know and have spoken to many references of contractors and make sure they have a track record of providing the high level of customer service you’re expecting.   I am able to match the homeowner’s project, personality type and service level expectations with the contractor that best matches their criteria which has been a winning formula.  Good luck to you and I hope you avoid that nightmare…

Kevin

 

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Stay tuned...coming soon

Hi Rich
I`m not sure if I`m going to give you the answer you want to hear, but my building experience has been quite good. Knock on wood. Excuse me as I ramble on, but this is the way I see the whole building trades world.
Industry
I see the whole industry as a system of natural selection. As, you drive around your neighborhood you will see many signs for custom houses. We all know these are not custom . . . they were build for no one. As you drive further out of the city you see the true `subdivision homes` that go on forever. All these houses are built on spec. My guess is that 95% of all the homes built are spec. homes. I have been told repeatedly (and i believe it) that the quality of a house is judged by the interior trim, front door and the upgrades. This is what the public and realtors look for.This leads to a culture of cutting corners and getting it done fast, (except for the trim).
In fact, it seems like "cutting corners" (no pun intended) is institutionalized in the sub-contractor world.
The requirements for a successful contractor is Speed, Cost and Speed.  The contractor that takes their time on stuff that will never be seen will soon be extinct in a spec house market. You may be in the market for a careful, conscientious sub contractor, but he is a very rare breed, because he has been weeded out through a natural selection process. There simply is not enough work in the truly custom building market (5%) to sustain the best contractors. They have to be able to compete in the rest of the market (95%)
Contractors
I`m going to use the term `builder` and `contractor` here. The builder is the guy that hires the contractors, and never the other way around.  In my case the builder has me talk directly to the contractors sometimes, and sometimes not. Your builder has to be a real people person in order to be successful. The contractors, say concrete, drywall, painting are a different breed. Many of these guys work very very hard, and they love their jobs because they

• don`t have to deal with people every day
• deal with things, and not paper
• can repeat what they did yesterday, and the day before that, and still get paid.

Yes, this is a huge generalization, And I already know of some exceptions, sorry.  Rich have you noticed above list describes your exact opposite?. I hope you haven`t been hiring contractors on your own.
Expectations
I wish I knew more about your disappointments concerning the `cutting of corners`. I have found that some customers have an unrealistic expectation of what a job site looks like. Growing up watching "This Old House" can really set people up for a huge let down. Building a house can sometime be like making sausage. You just don`t want to see what`s happening sometimes. I realize there are large amount of money spent on things on that show, but I`m speaking of just the general atmosphere of the site. If you expect it to look that clean you`re in for a shock. These expectations can drive contractor nuts. Some contractors will not work for home owners under any conditions. They would rather go hunting, and loose the job. Honestly, I can see their point of view sometimes. One might say "but by educating the consumer .... "    Remember .... they do this job because they love building, not dealing with people. I can`t stress this enough.
I`m a little surprised you haven`t talked about inspections yet, if they are going ok, then you should consider yourself in good shape.

so , back to your original question, how do you make the experience less stressful ? Two steps

How do you do that? We interviewed several, over a several year period. (no kidding). We went to their sites, with them and without them present. Met one of their contractors.  We got letters of recommendation, photos of their old work and drove by those houses and finally walked up to finished houses and knocked on the doors and said  . . . So . . . how did you like your builder?


If you`re interested, the latest house, its off Woodward a few houses behind Napier`s pet store. Huge front deck, columns all surrounded by mud and a port-a-potty. Hey, it`s a construction site man.
Jeff

Rich,

I am sorry to hear you had a bad experience in building your home.  I hope your contractor will be willing to listen and work with you in resolving the concerns.

Ideas for avoiding nightmare experiences:

1)  Research the builder/contractors and their sub-contractors!  This involves checking with the state to see if any complaints have been filed against the builder`s license or individual contractor.  Check with local municipalities to see if any of the local residents have addressed concerns about the builder, the quality of product used, and the builder`s workmanship. Be sure to speak with the local community`s building inspector and the Planning Department to find out if they have ever had to issue a stop work order and/or at any time prohibited the builder from working in the community. They may be willing to share public information even when they keep their personal opinions to themselves.  (It is not uncommon for fire marshalls, building inspectors and planning staff to know which builders provide the bare minimum in building standards verses those who deliver high quality building materials.  Although they may not volunteer what they know about the builder some questions such as what information is on the public records (site plan reviews, blue prints, recorded meeting minutes, etc.) may disclose tell tale information such as if the builder is using minimum standard products for their builds or premium grade building products.  Also ask for references from prior clients and visit them to see first hand if the exterior grading is level; if there are any cracks in the foundation or porches; is the tile work waving or cracking from being applied to an unlevel surface; are the grout lines spaced and/or visually straight within any tile work; are there any leaks or standing water in the basement or around windows; take a level to verify that cabinets were hung appropriately; and watch for small details such as if there are any visable gaps appearing in/around baseboards and/or crown moldings.  In other words make a list of things to look for then check their references for client satisfaction and visually inspect work they have done.  (Keep in mind depending on the soil composition it can take ten years before a house will settle.  Therefore if the contractor has been in business for over ten years it might be worthwhile to visit homes they recently built, a home which was built over eighteen months ago, and one they built ten years ago.) 

2) Ask if your building project will have a construction project manager and/or if the trade/contractor would be willing to work with the one you hire.  Be specific with the construction project manager and contractor on the details of the site, the quality you expect in both workmanship and materials used, the time frame you wish for the work to be completed and any other expectations. (Just as with any job there are many talented people but not everyone is a good fit for the task at hand so ask lots of questions.)

3) Hire a local attorney who specializes in real estate law for the review and/or crafting of all contracts and addendums.  Above all else make sure all agreements and expectations are expressed in writing before any work is conducted or money exchanged. Your attorney should be able to advise on what options best meet your needs for negotiating safe guards like placing funds in escrow with specific stipulations on how, when and under what conditions partial payments will be released.

5) Don`t assume--verify for yourself and ask questions at various stages of your project. 

6) Easier said then done: try to set aside the excitement and emotional ties related to the home. 

 

 

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Nicole Champagne
Email: influencialexpectations@gmail.com
Cell: (734) 262-3730
Soar With Influencial Expectations!