Many contractors believe that building quality jobs helps them sell more and make more money.
But how do you define quality? Who sets the standard? To my knowledge, the only quality standard for construction is the NAHB Residential Construction Performance Guidelines manual. It is the only manual available to set quality standards in our industry. Even those standards, however, have lots of room for improvement. Some of the items listed in the manual as minimum acceptable standards would not be acceptable in our home by either my wife or myself.
There is no real definition of quality in our business because it is nearly impossible to define the term. If we can’t do it, how can our clients possibly be expected to recognize the difference?
When you advertise “top quality”, your client’s definition is far different than yours. They think “perfection.” That’s why, when you say the job is complete, your client will trot out a laundry list of items they think need to be fixed, torn out or replaced. They use this as an excuse to refuse to make their final payment. Your definition of top quality is different than theirs.
The reality is that almost any contractor can build a given job as well as you can. I won’t deny there are hacks out there who can ruin any job, but there are also many companies capable of building jobs as well as you. The issue of top quality is really a moot point.
The issue is the difference between your expectations and your clients. That’s why your contract needs to be written specifically for the work to be done on the given job. It needs to clearly explain to your client what will be done, when, and to what degree of “quality”. Defining quality in your contract will help you define it for your work, as well.
Look at your own standards. You sold a contract for a major kitchen remodel at $96,379. You estimated two of your crew could set the cabinets in five and a half days. When the timecards come in, you discovered the two of them spent eight days setting those cabinets.
When you asked your lead guy why the job took longer than estimated, he says, “you wanted a top-quality job.” That’s when you remember you were there while they installed the cabinets and you had them go back and do two or three things over, reminding them you wanted top quality. Was that necessary, or were you fussing?
This is my definition of fussing. Imagine a guy who owns a brand new, candy apple red Corvette. He gives it a quick wash on Saturday morning, starting at 7:00 am, planning to drive to the local beanery at 9:30 am for breakfast with a friend. Three hours later he’s still in the driveway fussing about another smudge spot on the window, a nick in the door, a dirt spot under the front bumper. Those smudges/nicks/dirt spots really exist, but when is enough enough?
The owner of the company needs to define acceptable building standards for the company and the type of jobs they build, and that needs to be communicated to the crew. An example for remodeling would be that all windows and doors are set with screws only. No nails allowed. Those who’ve been in remodeling awhile already know the value of that standard.
You need a clear time schedule for each individual job and work to be done. When you estimate a job, you should be able to generate the time allowed for each phase of the job. Then when you start building, you tell your crew, “you have 12 hours for two people to set the cabinets”, “28 hours for three people to frame the new addition”, or “45 minutes to set each door”. Put a limit on each phase of the job. When the limit is reached, they stop. No more fussing, adjusting, tinkering. The individual or crew stops and moves on to the next phase of the job.
When you first implement this approach, you might get a lot of pushback giving you reasons the job can’t be built in the estimated time. If you’re confident your time estimate is accurate and the job can be completed well in that time, you can:
- Tell them that they can finish that portion of the job on their own time. Their option is to go home. You will have to find someone else to finish the job, or
- Sub that work out, or
- Adjust your estimates for length of time on various phases of your jobs to get in line with the speed of your crew.
There are a few other options, but if your people won’t produce, option 2 is the best answer.
Be fair. Your crew, regardless of the training you give them or how much you harass them, can only work so fast. If you’ve forgotten that, put your tool belt back on for a couple of days. Your estimates must be realistic. Most employees, if they’re paid fairly and given a pat on the back when jobs are well done, will give their best effort on any job.
Finally, your time frame for the work to be done should take into account the local area standards and local building codes. When your work reaches that level, it is time to quit fussing and move on.
Build a good job, build what you tell the folks you are going to build and build what is in the contract. Then stop. If you do not, you lose money.
The knowledge and experience Michael Stone gained in his 60+ years in construction has helped thousands of contractors improve their businesses and their lives. He is the author of the books Markup & Profit Revisited, Profitable Sales, and Estimating Construction Profitably, and is available for one-on-one consultations.
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