My Design/Build Coach Articles for Remodeling and Design/Build Professionals
       
   
The Ultimate Design/Builder

If you could find a way to close every design contract with the build contract attached to it, how much more easily would you sleep at night? There are some contractors that have perfected this practice, which I refer to as "Ultimate Design/Build".

Don't be fooled by the name, though. It may be the ultimate for some contractors, but it can be a huge headache for those who are not prepared for the baggage that goes along with it. Think of the contract as the marriage proposal and the signing of it as the actual marriage. We all know how messy divorce can be. Likewise the breaking of the design/build contract can be extremely painful and costly. But first, the good news…

What benefits can be derived from Ultimate Design/Build? With this form of design/build, no longer will you be bidding on jobs. Secondly, you will not have to "date" the prospect through the design phase only to find that they will not go through with the "marriage" of build. Your business is to build, not to meet as many prospects as possible, not to hold hands with clients through design only to walk away from a time consuming relationship that bears no fruit because they could not commit to building their project. 

The peace of mind that comes with a signed contract that locks in your profits is very comforting. With that contract in mind, it is a little easier to commit to the client the amount of attention and care that they deserve. It also allows you to allocate resources more efficiently and with clear notice of when construction will begin. Those resources include the personnel you need to complete the project as well as the financial planning necessary to produce a profitable project. This process allows you to predict company revenue more accurately

When I first heard about a local contractor that was practicing "Ultimate Design/Build" I was intrigued. I wondered how the guy got clients to commit to him before they even saw the design. As I found, he had exceptional sales ability through continuous professional sales training. In other words, he not only joined a well respected and well known provider or sales training, he kept attending even after he had mastered most of their techniques. This commitment to excellence was carried through to his entire staff which was trained, not only in construction but also in customer service. This consistent mantra of "Excellence" ran through the company and ended up back at the root of his success: happy customers. Those happy customers fed the company future business through referrals of friends, family and co-workers. 

The other characteristic that contributed to the process for that contractor was the fact that he knew his specialty and stuck to it: small to moderate size remodeling projects. He also knew his market and clientele which tended to be well educated suburban homeowners. Those ingredients seem to be what made this "Ultimate" process work. Just like ultimate nachos, you don't want to be throwing the wrong ingredients onto the pile. 

Of course, there are risks involved with this type of commitment. One of the major risks is miscalculating the unit cost of labor and materials. Using old data or last year's prices for materials can have a devastating effect on the successful outcome of the project. Familiarity with your sub-contractors and your suppliers and vendors is key to success.

The fewer number of variables on the project the more likely you are to make your required profit. In fact, contingencies can be built into the contract such as, what happens in the case of concealed conditions being uncovered during construction. 

Experience and training, for both you the company owner and your employees and sub-contractors is the only way you can achieve success as an "Ultimate Design/Builder". Your team must be professional, courteous and productive while you or your sales manager must exhibit professional sales ability and excellent customer service.

For a homeowner to enter into this type of an arrangement there has to be a high level of trust and rapport between the parties. But once that is established the move to sign the contract assures all parties that expectations are clear. In fact, the contract binds the parties to the completion of the tasks with specific actions required to complete the transaction. From your perspective, payment (which has cleared the bank) is the homeowner's end of the bargain. But they also may be responsible for other tasks that affect your bottom line. 

Did they empty the part of the house that is to worked on in a timely fashion, or vacate entirely, per agreement? Did they choose their finishes, cabinets, counters, etc. within their budget and within your time frame? You know how frustrating it can be to await further instruction from the client. Meanwhile, your crews are filling in here and there and your once well-organized work schedule looks like a hodgepodge. Pre-planning and clear expectations from all parties can lessen unpleasant surprises and increase the chances of a successful "Ultimate Design/Build" experience.
THE ULTIMATE DESIGN/BUILDER
By Joseph Dellanno


September 29, 2003
Reprinted from Residential Design & Build Magazine
www.dbmagazine.com