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Week of November 22, 2004

Front Page

* Changing Leadership of 109th Congress Likely to Renew Impetus for Housing Initiatives
* Tell a Friend About the NAHB Web Site
* Building Material Shortages Persist, But Don’t Appear to Be Getting Any Worse
* Housing Snapshot

President's Message

* The Elections Provide a New Foundation for Achievement in Housing

Housing Politics

* Congress Responds to Housing Concerns Before Passing Highlands Conservation Act

Housing and Economics

* October Housing Starts Galloping Toward a Rousing Finish for 2004
* Builder Confidence Holding Strong and Steady in November
* High Housing Prices Putting Californians on the Move, Survey Finds
* Eye on the Economy

Housing Finance

* NAHB Task Force on Housing Finance Reform Seeking Input from Association Members

Sales and Marketing

* These ABCs Help Lead to Model Home Merchandising Success

Business Management

* How to Implement Controls That Will Help Protect You From Fraud

Seniors Housing

* Team and Performance Matter When Selling to the 55+ Market

Small Builders and Remodelers

* Technology — Can't Live With It, Can't Live Without It

Builders' Show

* tecHOMExpo™ Will Help You Get Your Tech Together

Green Building

* Entries Sought for National Green Building Awards

Labor

* Home Building Students Hear From Leaders in the Industry

Building Products

* Wood Composite Doors Leading New Trend in Garages

Builder's Engineer

* Do Consultants Cost You Money?

Building News Coast To Coast

Association News & Events

* Anchorage Builders Share the Holidays With Needy Children
* NAHB Winter Board Meeting Schedule Announced
* Save 50% on NEBS Holiday Cards, Calendars and More
* Awards Programs Deadlines
* Calendar of Events

NBN Back Issues

 

Do Consultants Cost You Money?

Whatever consultant you want to talk about — engineer, architect, accountant, you name it — their number-one job should be to save you money. But consultants don’t work for free, so how can they actually save money? Allow me to illustrate.

A client of mine, we’ll call him Mister Eggplant, is building a large, lakefront home. His architect, Mrs. Radish, designed the most inefficient, expensive stained concrete deck imaginable. The elaborate structural system consisted of plywood, torch-down membrane, wood I-joists, beams, posts and footings. When it came to me for engineering, I immediately asked why we couldn’t simply use a composite metal deck. There was no good answer, so that is precisely what I designed, saving Mister Eggplant thousands.

Now, I could have easily put on my blinders and analyzed the original deck. My fee would have been about the same either way. But, I am by nature a cheapskate, so I try to save money whenever I can. And I don’t care whose money it is: mine, yours, Red Robin’s (I constantly hound my kids to use only as many paper towels as they really need.)

Let’s examine the bigger picture. What exactly is a consultant anyway? Isn’t it someone with specialized knowledge or experience who performs tasks someone else doesn’t have the time for? In general, most of us are smart enough to do most things in the construction industry if we’re given enough time to learn them. I don’t view consultants as smarter than anyone else, they’re just specialized in a particular area. I’m sure lots of builders could also be engineers or architects or accountants if they really wanted to. In fact, many would be superior at these occupations because they actually understand the real world — where the rubber meets the road.


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It is amazing how much money a bad consultant can cost you. Here are a few examples:

  • It is a consultant’s job to stay current with the latest industry trends in their area of expertise. A consultant still rooted in the '70s or '80s will probably cost you money by recommending antiquated methods or materials.
  • Bad consultants are often too slow or too fast. Too slow causes ripples of delay up and down the project chain. Too fast is only a problem if it’s also too sloppy or not thorough, in which case re-do’s will occur, again, causing delays. Delays anger clients, costing you future business. Also, if borrowed money is being used, delays cost real dollars burning interest.
  • Bad consultants don’t really get it. Sure, they may be book-smart, but if they don’t really understand the nuts and bolts of what you do and how you do it, they won’t likely get it right. Mistakes cost by a factor of three: doing, undoing and redoing.
  • Bad consultants don’t keep up with current laws and ordinances. There really is no excuse for not knowing the rules. I understand that even the rule enforcers don’t always know their own rules, but a good consultant will not only know the most current rules, but also how the local jurisdiction interprets and enforces them.

If you haven’t guessed where this is leading, here it is: Builders, too, are consultants. It just happens that their occupation involves a lot more field work than their white-collar counterparts.

The upshot is this. First, if you are a builder, don’t use bad consultants. They’ll cost you time and money and cause knuckle-pounding frustration. Second, keep in mind that you, yourself, are a consultant. Make sure to provide your clients the best value possible. When they ask for bone-headed things, politely point out something more cost-effective. After all, isn't it truly a consultant's job to save money?

 Tim K. Garrison P.E. of ConstructionCalc.com has authored books and short courses and lectures on topics relevant to builders. Got a technical or management issue? E-mail buildersengineer@constructioncalc.comTim reads every one.

This column cannot be reprinted without permission from the author.

The views expressed in this article represent the personal views, statements and opinions of the author and do not necessarily represent the views, statements, opinions or policies of the National Association of Home Builders. NAHB does not necessarily endorse any of the views expressed by the author and NAHB is not responsible for any direct or indirect consequences arising out of the views expressed in this article.


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