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Week of January 31, 2005

Front Page

* Better Homes and Gardens Building a New Home Based on Its Readers' Suggestions
* Help Tsunami Survivors Rebuild Their Homes
* Home Buyers Looking for High-Quality Features Even When It Means Less Space
* Housing Snapshot

President's Message

* NAHB Is Your Partner in Business

Housing and Economics

* New Home Sales Set Fourth Consecutive Annual Record in 2004
* Eye on the Economy

Builders' Show

* Put Technology to Work in Your Business, Perot Tells Builders

Business Management

* Human Resources: The Benefits of Offering Flexible Benefits Plans

Education

* Take Advantage of National Desigation Month

Small Builders and Remodelers

* Make a Zero Punch List for Every Job a Reality
* Members Honored for Furthering Remodeling

Construction Safety

* Home Builders Need to Take Steps To Prevent Excavation and Trenching Accidents
* OSHA Offers Tips to Protect Workers in Cold Weather

State and Local

* Associations Honored for Government Affairs Achievement

Sales and Marketing

* Booming Hispanic Home Buying Market Is Sold on Spanish

Design

* 2004 BALA Best in Housing Design Award Winners Announced

Building Systems

* Log Home Basics

Labor

* NAHB Student Chapters Make the Most of the Builders' Show
* Job Corps Carpentry Graduate Wins Shirley Wiseman Lach Award
* President’s Award Recognizes Achievement of HBI Job Corps Graduate

Building Products

* Fiber Glass and Slag Wool Insulation Good for the Environment

Builder's Engineer

* Does Halfwit Plus Halfwit Equal Fullwit?

Building News Coast To Coast

Association News & Events

* Oregon Builders Win Housing Endowment Community Service Award
* Awards Recognize Achievement in Workforce Housing
* McGraw-Hill Partners With NAHB to Deliver Product Information to Members
* Subscribe Your Employees to NBN Online and Earn a Chance to Win a Digital Camera
* Calendar of Events

NBN Back Issues

 

Make a Zero Punch List for Every Job a Reality

Wouldn’t it be great not to have to go back again and again to fix that never-ending punch list? To have your clients say that everything looks great? Well, stop dreaming and make it a reality.

According to Jerome Quinn, of SawHorse, Inc. in Atlanta, you can achieve a zero punch list for every project. All it takes is teamwork among you, your crew and your client.

Quinn defined a zero punch list as that point in the “substantial completion meeting” with the client when “all items in the contract are fulfilled, absolutely no punch list items exist, the client signs off on the project and the client pays in full — no holdback.” Quinn told attendees at the Remodeling Show in Chicago last fall that his company achieves zero punch lists on more than 50% of its jobs.

It’s All About Teamwork

The first step in achieving a zero punch list is to create a company culture that institutes top-down procedures that make the punch list the responsibility of everyone involved in the project including trade contractors, vendors and clients.


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Company management plays the biggest role. Managers must set expectations, manage those expectations and reset those expectations when unforeseen events occur. Management must also keep the team — including the clients — on course and motivated to achieve the zero punch.

To make the process successful, management must be committed to client relations. It's better to use e-mail to communicate with clients, rather than phone calls, because e-mail provides a paper trail (and proof) of all discussions and decisions made.

You should never assume anything when it comes to a client. Instead, take copious notes during meetings and ask — and then re-ask — questions about details to make sure everyone is on the same page.

Home owners have a key role in their project’s successful completion and are essential to achieving a zero punch list at the project's closing. For that to occur, home owners have to:

  • Make timely decisions
  • Make their expectations very clear
  • Communicate all questions and concerns upfront, not at the end of the project
  • Stay committed to the schedule by keeping changes to a minimum

The field team, too, is important to achieving a zero punch list. If field team members don’t commit to working toward creating a zero punch list, it won’t happen. Once the team buys into the company culture and goal, everything will fall into place — that is if you have the right people working for you.

And how do you define the right person?

Putting skills aside, the right team player is one who motivates other field staff. They will try their best to stay on schedule, will not delay critical decisions and will know when to ask for help. The right employee also knows how to react when things go wrong and will not hesitate to act.

Easy as ‘ABC’

Once you've put the right team together, the next step is to review your current punch list policies and determine how and why your punch lists are generated. You won't have to look too far to find a problem, just  follow the money — or where it's tied up.

For example, maybe most of your punch lists are the result of having too many change orders. Or maybe your trade contractors aren't doing as good a job as they should. Whatever the problem, take steps to fix or eliminate it.

Quinn followed this course at SawHorse and established some very specific procedures to eliminate punch lists at his company:

  • He concentrated on taking only design/build projects with fixed-price contracts.
  • He suggested that clients make their product selections in-house and eliminated any allowances.
  • He instituted a policy that did not allow for change orders after the contract was signed. Change orders could only be made before the signing.

Follow Your Plan and Set Expectations with Your Client

Once you've established your procedures, plan your construction and then work your plan. Be sure to include the contract, all drawings, a detailed scope of work (including specific exclusions) and detailed client selections in your construction plan.

Also, be sure to define and include in your detailed scope of work what you will not be doing, prefacing it with a statement like: “No provisions have been made to…”

At the pre-construction meeting, set all expectations upfront so you and your client are on the same page. Review the scope of work, plans and schedule, set a time frame and method of communication with the client, and most importantly, let the client know that a zero punch list is the goal.

Once construction begins be sure to stay in constant communication with the client and ask for feedback. Don’t wait until the end to find out how you are doing.

Bringing the Job to a Close

Two weeks prior to finishing the contract, review all work orders, credit memos and billings and arrange for a close date with the client. Bring in another supervisor to do a pre-punch and give the project supervisor and field staff those findings.

Duuring the week prior to closing, double check your punch list and make sure all items have been satisfactorily completed. Also, review the final invoice with the client at this time so they have ample time to have payment ready for you at closing. This is also a good opportunity to check the client’s pulse.

On closing day, walk through the project with the client, list any items on the substantial completion form, have all parties sign off on the substantial completion form, collect all payments and celebrate your success. You have now closed the project with a zero punch list.

With a zero punch policy, your clients will tell their friends about the quality of your work and customer service. Your trade contractor will appreciate not being harassed by you after they thought the job was done. Your employees' morale will get a boost — thanks to the bonuses and rewards you give them for a job well done. And you'll be able to focus your resources where they belong.


The NAHB University of Housing Offers Designation Programs and Other Courses

The NAHB University of Housing offers CAPS, CGR, CGB and a variety of other professional designation programs and business management courses that set builders and remodelers apart from the competition. To learn more about NAHB’s designation programs, visit www.nahb.org/designations. For a complete list of all current education offerings, click here.

 Who Will Be the Next Remodelor™ of the Month?

The Remodelor™ of the Month (this link is accessible to Remodelors™ Council members only) award program is underway. Don't miss your opportunity to be named the Remodelor™ of the Month. 
 
The program groups local councils from different states into designated months. There will be two “wild card” months that will allow the council’s members-at-large to participate in the program. A winner will be chosen each month and that winner will then be automatically included in the nominations for the Remodelor™ of the Year award.
    
This is a great opportunity for local councils and members to get involved and submit their “best of the best” members to compete with other councils. The national Remodelors™ Council will send out press releases and highlight each winner in ReNews, the Remodelors™ Council e-newsletter.


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