7/20/2020 Addressing Homeowner and Client Concerns [NCLBGC – 2 Hours Elective C.E.] Course Objectives • After completing this course, you will be able to: -Understand the necessary steps to ensure being hired as a Contractor. -Understand the process of setting a good foundation for contracts and customer relations. -Use contracts that benefit both parties: the homeowner and the contractor. -Demonstrate communication skills with clients. -Perform at a high level of confidence to complete a project. 1
7/20/2020 Being the Right Contractor for Hire • Building a dream home or building out a business location is one of the most exciting things a homeowner/client will ever do. • Bringing in the right contractor early on in the design process is one of the most important ingredients in staying both on budget and on schedule during construction. – Hiring the best Contractor – Determining the quality of craftsmanship – Minimizing emotional stress – Keeping unexpected cost in line – Staying on schedule Homeowner Referral Requests Homeowners will ask for referrals. They will talk with people they know and trust. They are going to get their rundown on you as a contractor. Here are a few sources they will be reaching out to: – Your Architect – Family and Friends – Neighbors – Lawyers – Real Estate Agents 2
7/20/2020 Licenses and Insurance Policies • Verify your Licenses and Insurance Policies and have them readily available for the homeowner/client. This should be a company’s best practice to management. – Hiring a licensed contractor will make the homeowner feel protected – Worker’s compensation insurance is a contractor’s responsibility – Make sure your contractor’s license is in good standing with the state licensing board – Always keep a copy of your GC license and insurance readily available Showcasing Past Work • Most clients are going to want to view recent work completed. A live website will typically be the best way to check this box. • A second option is a portfolio book containing photos of your past work. • Clients may ask: -Does the work carry a warranty, and how are problems corrected? -How does the construction site look? -Have older finished projects stood the test of time? 3
7/20/2020 Checking References • All homeowners/clients are going to want to check references. In private, they are going to discuss how their experiences were working with you the contractor. – Was it a pleasant working relationship? – Did they and the contractor communicate well? – Was the contractor fair and honest? – Was the project completed on schedule and within budget? – Were there extra costs or surprises? – How were problems handled/resolved? – How was the quality of craftsmanship and follow-up? A Physical Address • Is location a P.O Box or physical space? • You should always have a place of business where a client can visit and drop off a check, pickup or leave samples, etc. 4
7/20/2020 Understand the Contract • Help your Client understand the contract • Discuss the different kinds of contracts available and have them ready for review • Share the updates of the construction bid if plans change for any reason • Let your Client know that there are always unknowns in the construction process that create change orders and additional costs • Remember : There are more of us hardworking contractors than the “fly-by- night” operations. Putting your Client at ease and explaining the process will put you in position to be the perfect contractor for the project Scope of Work There are many details that need to be highlighted, whether it be a new build or a renovation project: -Write everything down so everyone is on the same page - Reference the architect or designer of the project - Date the plan 5
7/20/2020 Duration of Work • Projects often take longer than predicted for many legitimate reasons - Some are caused by the client - Some outside of the contractor’s control… -Regardless, put the expected duration in writing -Put together a timeline. - This will help calm the nerves of the client if progress is slowed and grants you the right to explain why? Exclusions • A good contract should include a list of exclusions • These might be related to areas that will not be visible until opened up during demolition. e.g. likelihood of asbestos behind walls • Level of cleanup • Contingency budget • Matching existing finishes 6
7/20/2020 Payment Schedule • Payment schedules can vary by the job; they should always be agreeable to both parties involved -Types of payment schedules: - Payments tied to milestones in the projects - Payments tied to percentages of completion **All payments should cover a certain amount of labor and material What We as Contractors Really Mean • Translating contractor’s lingo and communicating it to the client • Let’s look at a few common said phrases from the lens of a client 7
7/20/2020 What We as Contractors Really Mean - Continued • (Nothing): -We do not call the client back -We are not interested in the job -Too busy to return their call What We as Contractors Really Mean - Continued • “ Let’s do it my way instead ” : -Contractors have the experience doing things a certain way -Recommend the process that you know works -Listen to the client and be ready to explain 8
7/20/2020 What We as Contractors Really Mean - Continued • “I’ll get started late next week”: -Juggling several different jobs -Material and supply delays (special orders) -Delay with the tradesmen (plumbers, electricians, etc.) -Keep the client informed What We as Contractors Really Mean - Continued • “The Price is…”: -Unless the scope of work changes the price is firm, don’t cheat yourself -Contractor prices vary because of different approaches to the project -You won’t stay in business unless jobs are priced competitively 9
7/20/2020 What We as Contractors Really Mean - Continued • “I will do my best”: -If a homeowner hears this there is a good chance a contract will fall short of expectations. -This is a case of the client asking for too much on a small budget. -The client added work to the scope of the project but wants it completed by same date. -Are looking for a brand-new look from existing elements. Famous thought of a contractor: “If you need everything perfect by a certain date, be prepared to pay more. If you have a fixed budget but want a certain look give the contractor time to be creative and make it work.” - Bob Therman 10
7/20/2020 Project Elements • There are three elements to any project: 1) The level of quality 2) The price 3) The time it takes to complete the project What We as Contractors Really Mean - Continued • “The design needs some tweaking” -Often this means the plans were unbuildable -What is on paper just can’t be built -A staircase -Existing spaces that don’t exist -A pocket door that won’t slide through a switch 11
7/20/2020 What We as Contractors Really Mean - Continued • “I don’t think this is a good fit” - If we as contractors decline to quote a project it could be for a lot of reasons: -Concerns about the budget -Contractor and client will be talking a lot…. -Too busy -Won’t be able to devote enough time to the project to do it right What We as Contractors Really Mean - Continued • “We are going to need to do some value engineering” – Client has a caviar dream on a tuna fish budget. What to do: -Value engineering is when the team thinks creatively. -Reworking the project. -Giving the same with similar scope for less. -Changing material selections. 12
7/20/2020 Punch List Session • “Lets walk through and make a punch list”: As a contractor we want to know everything that needs to be done to satisfy the clients scope of work. -Every trip to the job costs us a contractor -Make every effort to come up with a complete punch list -A list of to-do items that need to be completed for the project to be considered complete. (Instead of doing it bit by bit over time as you go along) Question Homeowners are not inclined to check referrals? o True o False 13
7/20/2020 Question – Answer Homeowners are not inclined to check referrals? o True o False False is the correct answer 2 Things To Do After the Project is Complete • Here’s how to make the most of your project ensuring the quality is maintained over time. Cover the maintenance tips with your client and you will be greatly appreciated. – Register any warranty items – Discuss maintenance items that may be applicable 14
7/20/2020 Register Any Warranty Items • Give all the warranty cards to your client • Take a few minutes to go through the warranty cards - Be sure to explain the key points • This will also cover you for any abuse to the product Explain to Your Client About Maintenance • General cleaning • TLC to keep installed items functioning the way they should 15
7/20/2020 Explain to Your Client About Maintenance - Continued Common Maintenance Items: • Natural materials to make sure they don’t fall prey to stains and mildew. It is imperative to seal and protect these types of materials: - Teak shower benches - Tile grout - Stone and marble - Exterior decks Explain to Your Client About Maintenance - Continued Filters • Such as those in water purification systems and air conditioners - Filters should be changed regularly - Equipment will not function at high performance with neglect 16
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