Business Management: Don’t Leave Your Reputation on the Table: Achieve the Zero Punch List
Wouldn’t it be great to not have to go back again and again fixing a never ending punch list? Wouldn’t it be perfect if your clients said all looks great — I have no complaints. Stop dreaming and make it a reality! According to Jerome Quinn with Sawhorse, Inc. in Atlanta, you can achieve a zero punch list for every project — it just takes team work between you, your crew and the client.

Quinn defined the zero punch as “at the substantial completion meeting all items in the contract are fulfilled; absolutely no punch lists items exist; the client signs off on the project; and the client pays in full — no holdback.”

Quinn told Remodeling Show attendees that his company achieves zero punch lists on more than 50% of their jobs. The first step in achieving a zero punch is creating a company culture that institutes procedures from the top down and making it everyone’s responsibility and success, including clients, trade contractors and vendors.

It’s All About Team Work
Company management plays the biggest role in creating a zero punch list. It is their role to bring all team members together and set the procedures for the zero punch. Managers must set expectations up front; manage those expectations and reset those expectations as unforeseen events happen. The management must also keep the team, including the clients, motivated to achieve the zero punch and on course.

The management must be committed to client relations. When communicating with a client, email is best because it gives you a paper trail (and proof) of discussions and decisions made. Never assume anything when it comes to a client, take copious notes during meetings and ask and re-ask to make sure everyone is on the same page.

The homeowner must also participate in successful project completion. It is the role of the client to make timely decisions; to make clear their expectations, communicate to the contractor any questions or concerns upfront and not wait until the end of the project; and stay committed to the schedule by not having excessive change orders.

The field team is the most important player in creating the zero punch list. Without their buy-in to work their best in creating a zero punch list, it won’t happen. Once the team buys into the company culture of the zero punch, all will fall into place — that is if you have the right people working for you.

What is the right person? Putting skills aside, the right team player will motivate other field staff. The right employee will try his best to stay on schedule, will not delay critical decisions and will know when to ask for help. The right employee knows how to react when things go wrong and will not hesitate to act.

Easy as ABC
Now that the right team has been put together, it is time to review your current punch list policies. To create a zero punch list, you must find out why you receive punch lists. Where does the problem lie? To find this out, follow the money. Is it numerous change orders? Is it your trade contractors? Find the problem and eliminate it.

To create his company’s zero punch, Quinn moved toward design/build projects and fixed price contracts; suggested clients make their product selections in house and eliminated any allowances; and instituted no change orders after signing the contract. Change orders can only be made before signing the contract.

The next step is to create specific procedures. Plan the work and work the plan. When creating your construction package be sure to include the contract, drawings, detailed scope of work (including specific exclusions, and detailed client selections. Define in your detailed scope of work what you WILL NOT do and state it as “no provisions have been made to…”

At the pre-construction meeting set all expectations upfront; 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 zero punch 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).

The Grand Finale
Two weeks out to finishing the contract, review all work orders, credit memos and billings; arrange for a close date with the client; and bring in another supervisor to do a pre-punch; and give the project supervisor and field staff his findings.

In the week going into closing, double check your punch list, make sure all items have been satisfactorily completed, review the final invoice with the client so they can have a check ready at closing; and take this 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!

It can be tedious work to save work and money in the end, but the rewards far outweigh the extra effort. Now that you have a zero punch policy, your clients will tell their friends about your quality of work and customer service; your trade contractor will appreciate not being harassed by you after they thought they were done; your employees’ morale will receive a great boost thanks to your bonuses and rewards; and you can now focus your resources where they belong. [return to top]