“The message for contractors is clear: company integrity is as critical to the success of a construction business as the cost of the job and the quality of the finished product,” said Carol Novello, president of Intuit Construction Business Solutions, which distributes Master Builder and other software products aimed at the construction industry. “The study shows that it is just as important to have the right business management skill set and processes as it is to have the ability to lay a foundation and finish a job.”
Good business systems demonstrate your integrity to customers early on. “Even at the front end, when we do an estimate, they see we’re using state-of-the-art equipment and they know they aren’t getting flimflammed,” says Bill Murray. Co-owner of Savannah Homes in Florence, KY, the builder uses integrated software “to keep track of everything,” as he puts it.
Most Customers Satisfied With Their Contractors
The Intuit study found that contractors generally succeed at keeping their customers happy. Eighty-four percent of the home owners surveyed said they would recommend their contractor. And approximately 60% of the commercial and residential respondents trusted the firms they hired.
When builders slip up, they sometimes turn in shoddy work or leave customers wondering about a project’s status. A total of 56% of residential customers cited job quality as their primary reason for dissatisfaction. Other key factors included low productivity and efficiency. All respondents felt that construction firms need to do a better job of communicating with them.
Novello noted that maintaining a personal touch with customers can be difficult given the challenges contractors of all sizes face. “It's not easy to keep up with the demands of today's construction world. Construction business challenges go beyond bad weather, thin margins, customer disputes and scheduling problems,” she said.
One way to keep communication flowing with your customers is to schedule regular meetings with them at the start of a project. That’s what Daimon Doyle, president of Doyle Custom Homes in Olympia, WA, does. “You need specific, standing appointments to get together to discuss the project’s status, the next steps and to address the client’s questions and concerns and brainstorm together,” says Doyle. “Otherwise it doesn’t happen.”
The meetings benefit Doyle’s entire business as well as his customers and their projects. “They help me increase my efficiency, keep the project on track and keep down costs,” he says. And, even better, customers realize they’re working with a builder who has good business systems, which helps build trust. As Doyle puts it, “We’re not reinventing the wheel each time.”
About Intuit Inc.
Intuit Inc. (Nasdaq: INTU) is a provider of business and financial management solutions for small and mid-sized businesses, consumers and accounting professionals. Its flagship products and services include QuickBooks®, Quicken® and TurboTax® software. In November 2001, Intuit acquired Master Builder™ integrated construction business management software. For more information about Intuit® Master Builder™, visit the Intuit® Web site.
'Making the Sale — Getting Great Clients to Choose You' Available at BuilderBooks.com
"Making the Sale — Getting Great Clients to Choose You," available at BuilderBooks.com, is the fully customizable builder marketing tool featuring nine questionnaires that prospects can use to narrow their choices. Developed by Pacesetter Award-winning Katz Builders of Austin, TX, "Making the Sale" positions your company as the prospective home buyer's ally in the search for a quality builder and also includes tools to help prospects identify qualified lenders, architects and interior designers. To view or order this publication online, click here, or call 800-223-2665 to order.
'Home Builder Contracts & Management Forms on Disk' Available at BuilderBooks.com
“Home Builder Contracts & Management Forms on Disk,” a book and CD with a customer selections guide and selections forms for your business, is available through BuilderBooks.com. The publication includes 93 essential contracts and forms that will help you systematize your business, build more productively and manage more efficiently. To view or order this publication online, click here, or call 800-223-2665 to order.
Business management publications available at BuilderBooks.com
BuilderBooks.com also offers a variety of other publications about business management. To view or purchase these publications online, click here.
Want more information about effectively managing your business?
NAHB’s Business Management Department offers a variety of online resources to help you run your business better and more profitably. Click Business Management Tools for articles about human resources, financial management, sales, production, technology, customer service and other business-related topics. In addition, visit the NAHB Software Users Network Discussion Forum (SUN) to ask technology consultants and other builders what they think of various software packages and applications.
Subscribe to NAHB’s Business of Building e/Source
NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, click here on the members only side of www.nahb.org.
University of Housing Offers Courses on Customer Service and Business Management
The NAHB University of Housing offers a course on business management designed to help builders improve their business and profitability. For a list of current offerings, click here. Search keywords: “Introduction to Business Management.”
The NAHB University of Housing offers designation programs for builders and remodelers interested in improving their productivity and profitability. Click here for a list of NAHB designation programs.
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