Builders: Automated Construction Software Helps Gain Efficiencies

Good News: Homebuilder Order Growth Continues to Accelerate

Have the details at your fingertips!

One of our most recent blogs Homebuilder Construction Rates Accelerating; Let's Talk Efficiency  was developed as a result of two recent Zelman & Associates comments,

"Builder order growth has continued to accelerate; excess speculative inventory has been absorbed and housing starts are picking up to satisfy demand."

"Increasing construction activity always presents the risk of cost inflation and labor tightness."  

Are Your Operations Optimized to Meet the Challenges?

There's nothing quite like throwing ice water on good news, is there?  How are builders addressing cost inflation and labor tightness? Possible to make adjustments and see results relatively quickly?

We'd like to suggest the answer is: YES!

Let's take a look at one of CPS' builder clients currently using our automated construction scheduling software,  FieldCollaborate. When asked how they previously managed their construction process, the CEO replied:

"Email and phone. We were really disjointed. There were disputes among FieldManagers about trades because they didn't know who was working on what, when."

Costs and Labor Can Be Better Managed! 

Sound familiar?  What has changed with the implementation of a scheduling system?

"Because you can plan out jobs far in advance (we schedule out 6 months), builders and vendors can forecast materials, allocate labor toward our jobs, etc. The purchasing team can negotiate better prices with vendors as they're able to pinpoint quantities and timing."

Using a Portal to Helps Get Everyone on the Same Page!

We've also talked about the value of SST (self-service technology; take a look at uses throughout a builder's organization in this Blog). FieldCollaborate offers SST with its Vendor Portal. Vendors, using authorized credentials, are able to view their schedules (as well as drawings, photos, notes and the like) up to 6 months in advance.  Builder staff access the same Portal. Everyone's looking at the same schedule, same calendar, same workload.

Critical is the short-term view regarding efficiency:

"The Portal eliminated a lot of phone calls, texts, etc. That extra time allows us to continue to move homes."

Want to find out more about the efficiency and profitability advantages provided by automated scheduling software? Contact us; we can provide a full-featured FieldCollaborate demo!

Homebuilder Construction Rates Accelerating; Let's Talk Efficiency

Builder Order Growth Continues to Accelerate

Alan Ratner, Managing Director of Homebuilding Research at Zelman & Associates, recently delivered great news for homebuilders saying,

 "Builder order growth has continued to accelerate; excess speculative inventory has been absorbed and housing starts are picking up to satisfy demand."

Isn't this great news for everyone associated with the homebuilding industry?

Yet, Increased Construction Activity Presents Risks

Ratner continues,

"Increasing construction activity always presents the risk of cost inflation and labor tightness." 

 If you've been reading our Blog, you might recall a March 2019 article noting Ashok Chaluvadi's comments in Builder,

A key issue cited by 82% of builders is the cost/availability of labor. What's particularly noteworthy is labor replaced building material prices -- which had been the hot topic in 2018.

Increasing Costs and Labor Shortages Turn Focus to Efficiency -- Particularly SST

This environment (increasing costs, labor shortages) provides an opportunity for builders to laser focus on areas specifically under their control --  operations -- in order to increase internal efficiencies (and, in turn, profitability). One opportunity is automated construction scheduling -- particularly SST elements (that is, self-service technology). 

SST had somewhat of a bad reputation in years past.  It may have tried to do too many things in too disparate ways. However, attitudes change; today, demographics and technology make SST an important tool for home builders as they consider that increasing workplace productivity is the option most under their control, today.

SST implies technology and construction management software leverages SST

An effective construction software implementation gets everyone within the building process (and that includes both in-house and vendors) on "the same page" as to which tasks need to be accomplished, in what order and on what date.

Cloud-based software makes the information available to everyone, 24/7, anywhere anytime. That means you can expect a reduction in delays, dry runs, phone calls, texts, misunderstandings. 

In a sense, getting everyone on the same page is a good first step in exerting organization control.  Interested? CPS' FieldCollaborate is award-winning automated construction software; contact us and we'll give you all the information needed so you gain productivity while experiencing this order growth!

Builders: Increasing Productivity Helps Offset Labor Costs & Availability Issues

Builders Rank Labor Cost & Availability Top Issue for 2019

There's a great article by Ashok Chaluvadi in a recent Eye on Housing article in Builderonline describing anticipated challenges facing builders in 2019; you can read it here.

SST is one option designed to increased productivity

A key issue cited by 82% of builders is the cost/availability of labor. What's particularly noteworthy is labor replaced building material prices -- which had been the hot topic in 2018.

What options are available to a homebuilder to counteract labor's increasing cost/decreasing availability -- particularly in the short run?

SST Helps Builders Impact Productivity

We know the number of trades people is limited; a significant number of experienced workers are "aging out"  and there haven't been enough Millennials entering this specific workplace.

Automated Quality Inspection Tools add focus

SST (that's self service technology) had somewhat of a bad reputation in years past.  It may have tried to do too many things in too disparate ways. However, attitudes change; today, demographics and technology make SST an ever emerging tool for home builders as they consider that increasing workplace productivity is the option most under their control, today. SST implies technology and construction management software leverages SST:

• SST takes advantage of 24/7 cloud-based information: An effective construction software implementation will get everyone within the builder's organization and their vendors on "the same page" as to what tasks need to be accomplished, in what order and on what date.  Cloud-based software makes the information available to everyone, 24/7, anywhere/anytime.  That means you should expect a reduction in delays, dry runs, phone calls, texts and misunderstandings.  In a sense, that's the first step.
• SST provides a focus on the builder's scheduling process: This might seem strange to be #2 in the list.  However, it's sometimes difficult to modify processes, implement software and drill down into issues all at the same time.  Some builders start operating in a SST environment and then examine what can be done more effectively as they reap the fruits of 24/7 information and a consistent, measurable pace. Developing a schedule provides consistency and accountability; you're able to see (24/7!) the status of every job and employ metrics to highlight problem areas. You should also see the benefits from your vendor's perspective: they can look ahead and plan. You're working more collaboratively! Expect to see both decreased cycle time and a further reduction in dry runs as your team refines their build process.
• SST facilitates Quality Inspection Tools: We can all agree call backs are inefficient, cost money and can impact buyer satisfaction.  There aren't many things worse than finding punch items at the buyer walk through! Why not add a short check list alongside key tasks that provides an accessible, consistent way for your field managers to evaluate completion and direct feedback for the vendors? If there's an issue, CPS Field Collaborate, for example, auto-generates punch items that are emailed to the vendor and auto-tracked until resolved.  Again, everyone (builders, management, vendors) is on the same page, 24/7, looking at the same issues and focused on resolution. SST continues to provide reminders to your field managers of outstanding issues and continues to email vendors until resolution. 

CPS' FieldCollaborate is the 3rd version of our construction scheduling software designed specifically for homebuilders and offering the 24/7, anywhere/anytime access we discussed. Interested in finding out how it can increase your team's productivity? Use our contact form to schedule a one-on-one demo.

What Can Builders Do to Up Their Productivity?

Productivity Issues Are Long-Standing and Complex

One of this year's "hot" topics has actually been a topic for a number of years -- in 2017, for example, MarketWatch noted, "the construction industry has a chronic productivity problem."

Use Technology to Manage the Details

The reasons are many and the impact is considerable on the global, national and local levels -- as well as individual homebuilder profitability.

Technology Offers Help at the Builder Level!

Rather than looking at the issue globally, however, let's focus on what you, as a homebuilder, construction manager or superintendent, can put your arms around to up your productivity -- which will improvide profitability.

First, however, we'll take note of a MarketWatch comment: there's been an underinvestment, in the construction industry, in technology.

Homebuilding is the Sum of Many, Many Details

Yet, there are relatively inexpensive and highly effective digital solutions that will have an immediate impact on your business -- as they'll help you organize, manage, evaluate and report on the many details surrounding every job.  For example, are you able to immediately answer these questions:

• Which of my vendors consistently meets my objectives for starting and completing a job on time? How can they access that schedule? What about when things change?
• Which vendor delivers work that meets my published standards and drawings? Do I have published standards? Are they readily accessible? How do vendors access the latest drawings?
• How much rework did my plumbing vendor have to do at the Estates community?
• Were all those homeowner roofing complaints related to this year's heavy rain, manufacturing issues or poor installation?
• Are punch issues resolved prior to walkthrough? Do I have a way to keep track of the punch items from the walkthrough?

Generate and Track Your Punch Items

Technology for the desktop and mobile devices (software such as CPS' FieldCollaborate construction scheduling and WarrantyWatcher customer service management) will help you create and distribute schedules to your vendors and track performance so you're able to address some of those questions. Consistent, easily available, measurable schedules -- along with all of the supporting details such as standards, drawings and easy access -- are key to getting your arms around some of those details.

Portals, Dashboards, Reports: They're Available & Will Up Your Game!

Being able to analyze which vendors are effective, the reasons behind rework and how punch items are addressed enables your organization to make huge gains in productivity as you use data to make sure you're laser focused on key issues based on facts, not commentary.  Use on-screen dashboards or generate reports detailing past-due punch items, find out which happen over and over, utilize Quality Inspection checklists to catch problems at the task level before your walkthroughs.  That's how technology helps you manage the details!

IBS2019 Before & After!

CPS will be demonstrating these easy-to-use and powerful solutions at IBS2019 in Las Vegas from February 19-21 (you can grab free passes to the exhibit floor here):

https://www.buildersshow.com/ComputerPresentationSystemsInc

Can't make it to Vegas or don't want to wait to up your productivity? Schedule a demo here and we'll be in touch asap!

Check Your Buyer Experience Gap: Then, Watch Referrals Grow!

In thinking about the takeaways from Jeff Shore's Sales Leadership Summit, realized there is probably an opportunity to analyze the buyer experience as well as that of the home shopper.

How to minimize the buyer experience gap?

Do You Have A Buyer Experience Opportunity Gap?

Extending some of Jeff's home shopper concepts a bit, 

-- What would be a great buyer experience after the home shopper signs the Purchase Agreement?

-- What is a buyer experience today in your organization?

-- The difference is your buyer experience opportunity gap!

Have you been asked to increase your buyer referral rate? Uncertain where to begin? Closing the buyer experience gap is a great place to start!

Keeping Buyers Informed is Key to Their Experience

Any chance you saw our Solutions Blog: Homebuilder #1 Referral Driver: Keeping Buyers Informed? You can read it here.

Not surprisingly, that Blog is one of our most frequently read! It kicks-off with Eliant CEO Bob Mirman's Builder and Developer article statement: the single largest referral driver for homebuilders is how well the builder keeps buyers informed regarding the status of construction. 

Lack of Information Creates Stress

Mirman asks us to think of the homebuying process as similar to a hospital stay.  No question: both are stressful! Yet, the stress can be mitigated by information.  No one, in other words, feels comfortable in the dark. He notes the #1 buyers' Willingness to Refer a Friend is the builder's ability to keep the buyer informed of their status. 

Communication Doesn't Need to be Complicated

Critically, Mirman notes, you don't need conversation -- just communication. 

Information is Communication

We'd like to suggest using software to gain the tools necessary to enhance your current communication process. CPS' software Portals take information developed by FieldCollaborate's construction users as well as WarrantyWatcher's customer service teams and make it available to buyers and homeowners via the Internet. 

No additional work required: the construction schedule can be set as available for buyers to view. Warranty requests, status updates and appointments can be viewed via mobile or desktop. In both cases, 24/7, anywhere/anytime. 

Want to take things up a notch, improve the experience even more? Go the extra step and take stage-of-construction photos and attach them to your milestones. Add post-repair photos so your homeowner knows how things look before getting home from work. After all, your buyers have Portal access 24/7 so they're up-to-speed as the work is completed!

Referrals Are the Result of a Great Buyer Experience

Referrals can be your least expensive source of traffic -- and the most rewarding.  Communication is a win-win as your team communicates results internally -- and they're easily viewable by your most important audience, your buyers!

Builders: Do You Share These Pain Points?

Interesting recent BuilderOnline article by John McManus noting that the benefits of the current recovery in homebuilding appear slanted towards the very large, production homebuilders.

CPS FieldCollaborate:
Cycle-time Improvements Start Quickly

Market Gains Aren't Equal Across the Builder Landscape

Today, smaller builders, says McManus, are working harder and have a bunch of "math basics" working against them.  Larger builders are able to optimize finance structures as well as relationships with land sellers, vendors and distribution networks.

In many cases, the result, for smaller builders, is a profit squeeze. Labor and material costs are increasing and builders report usable lots aren't as available and are more expensive.

Technology Investment as a Tool

Are these some of your pain points? There's a few more: McManus goes on to say that many of the "smaller builder positives" such as local land knowledge, long-standing vendor relationships and local homeowner referrals don't hold as much sway as previously.  And, there is the Millennial home buyer with all sorts of different objectives, priorities and shopping patterns.

Add to that, larger builders have invested in sales, marketing and operations-focused technology -- and the results are making for a much more competitive marketplace.

Interactive Technology lets you eliminate static displays

Dial-up Your Motivation to Locate Solutions

One solution, McManus suggests, is locating capital partners to achieve better margins. That's certainly an option for some.

Another is reviewing and evaluating current operations. Are you still operating with pen/pencil on the operations side? There are relatively inexpensive, easy-to-use construction management software products such as CPS' 2018 Constructech award-winning, cloud-based FieldCollaborate that can be implemented quickly and start paying off in decreased cycle times and increased communications with vendors and buyers. Buyer referrals still resonate -- grab them as a result of technology use! Available anywhere/anytime for field managers, vendors, home buyers, corporate users.

Take the opportunity to examine how well you are telling your home shopper's story, as well. Step away from tired, static displays and utilize an interactive presentation -- consider an iPad or Surface tablet  if a larger display isn't feasible.

Upgraded marketing tools create an environment appealing to the ever-growing Millennial buyer and responding to their need for new ideas, designs and uses -- and, interactive technology is the way they're used to purchasing.  Adding interactive technology doesn't need to be an incremental increase in cost -- you're able to eliminate the wall-mounted floorplans and pre-printed brochures with products such as CPS' SalesTouch. 

Builders: Using Software to Help Ease Margin Pressure

Are you a homebuilder focused on the entry-level and first-time home buyer market? That portion of the new home market is hot -- and the Millennial home shopper is more focused on purchasing than ever before!

Are you experiencing price increases on basic materials? How about difficulty in obtaining labor -- especially in critical trades? Labor shortages lead to price increases -- and these factors mean you're seeing margins being squeezed.

Now is a good time to focus on Operational Excellence

Recently, John McManus had a great article in BuilderOnline. McManus notes there's an opportunity today to motivate apartment dwellers to purchase homes. Home shoppers prefer new -- and apartment dwellers don't need to sell their current home so there are fewer strings attached to the purchase.

But, these buyers are at the first-time, entry level price point so price increases on the builder side indicate a need to be extra focused on what could be considered controllable costs to maintain margins. McManus notes builders are "doubling down" on items under their control such as construction cycles and workflows.

Construction Scheduling Offers an Effective Management Tool

Cycle time doesn't live in a vacuum -- and can't be determined or measured in the abstract, either. Do you have a published schedule -- do you track progress against it? Does everyone look at the same schedule or are there multiples floating around within the organization? If so, there's where inefficiencies multiply!

If there's one schedule, not only can you measure cycle time but you're able to provide consistent, reliable schedules to your vendors. That's a win/win as your vendors can rely on your schedule to book their crews. That lets your vendors get and stay efficient.

Construction scheduling software will help you develop the tools so there's only one schedule (for everyone -- within and outside the organization). Not only can you track and measure against it but..your vendors will have easy access to it and can rely on it.

CPS FieldCollaborate: Award-winning Construction Scheduling Software

We're available to provide a FieldCollaborate demo -- and we'll show you how to implement and use software that has resulted in up to 30% cycle time reductions -- day in/day out!

Builders: Get Proactive, Increase Referrals with Mobile Customer Experience Moments!

Let's take an earlier Solutions Blog: How to Improve Your "Refer a Friend" Rate (read it here) with Eliant's Bob Mirman thoughts regarding the referral impact associated with keeping customers informed - and add Full Story's Scott Voight's thoughts, "You can win on customer experience" and "Excellent customer service can largely be distilled in two words, speed and convenience."  

Have you adopted  "proactive customer service" -- that is, not waiting for an event to offer specific, customer-focused attention.

Get Mobile and Create Proactive Customer Service moments!

A recent Innovative Retail Technologies article sparked a new thought: the value of mobile relative to proactive. 

There's a "First Dibs Opportunity" study suggesting 46% of mobile usage sessions start with no real aim! Author Christine Kern also mentions 70% of respondents use their mobile devices to "kill time." 

The study concludes "if smart phones were smart, they'd do a better job of giving us something useful!"

Software can help builders turn mobile time into proactive customer service moments! Your homebuyers can grab a minute or two, while waiting in line at the store, to check out stage of construction photos. And, can't you see your buyer getting excited to see a just-installed countertop and turning to the next shopper and saying, "Check this out! My new home's kitchen was just finished!"

That's a refer a friend moment! Or, how about the impact of a homeowner browsing their warranty service requests while getting a hair cut and seeing a completed request with a photo?  Wouldn't that be a "Wow! My builder is on top of things!" moment?

CPS' FieldCollaborate and WarrantyWatcher Portals can help you easily create these proactive customer service events -- and do it quickly and conveniently. Customer experience will improve and your referral rate will jump!

CPS will be exhibiting at #IBSOrlando next week -- drop by for a demo at Booth W5583.  Or, contact us at info@cpsusa.com and we'll schedule a demo for you!

Builders: Get Added Value from Your Buyer Surveys

Rating our experiences... that's a concept that has started-up brand new companies and entered almost everyone's life in the last 10 years.  There used to be pen-and-paper questionnaires.  Today, we have Yelp, TripAdvisor, Amazon, Survey Monkey ... even primary care physicians are asking for feedback!

 Get Proactive: Engage buyers mid-stream with surveys

Traditionally, many homebuilders took advantage of post-closing surveys.  Pen-and-paper has migrated to web-based. Some builders utilize results to evaluate sales agents and construction managers.

We'd like to suggest surveys be a part of your ongoing communications process.

Doesn't it seem a bit abrupt to ask "How did we do?" out of the blue for such a major event as a home purchase -- although it can make sense for a dinner out or hotel stay.  There have probably been many "great job" and "could have been better" events from the first sales office visit through closing. 

Finding those mid-stream results -- and managing around them -- not only engages your buyer and enhances the customer experience but allows the builder to manage people and process on a more timely basis.

Earlier CPS Solutions blogs talked about initiating and maintaining the communications process during the construction process.  Keeping your buyers informed; providing stage-of-construction photos -- CPS' FieldCollaborate offers a Buyer Portal just for that reason.  Why not schedule a survey after the first Construction meeting?

Now, your buyers are involved in the feedback process and engaged to the level needed to provide meaningful feedback.  It's no longer a perfunctory "How Did We Do?" at closing; you've initiated full-scale dialogue. And, that's the type of communication that will generate referrals!

Find out how we can help you integrate SurveyMonkey into CPS' construction and warranty software!

We're All in the Customer Service Business!

Not that long ago, many organizations didn't necessarily think they were in the customer service business. Doctors, for example.  They treated illness, set bones and the like. Home builders, possibly.  Their business: homebuilding.

Get Proactive! Offer 24/7 communication channels

Today, with the advent of social media and culture changes, interaction with customers needs to be top of every organization's mind. Whether its Twitter, Facebook or an organization's own web page, customers have plenty of opportunities to speak their mind about product, service, followup... just about everything!

And, satisfying expectations for "good service" has expanded, as well.  It used to be a "thank you" card was considered thoughtful and enough.

Today, a continued conversation needs to accompany a homebuyer from purchase to closing and throughout the warranty period. BuilderIQ notes that buyers "start to regret" the purchase when they don't hear from their builder during the post-sale process. That's a fairly radical thought!

One solution: get proactive! Setup processes and systems that enable your buyers (and homeowners) to engage with you in a consistent, straightforward manner. Timing is everything: when an item is top of mind, people want to be able to communicate!  And, communication doesn't have to mean conversation.

Take a look at CPS' FieldCollaborate and WarrantyWatcher Portals as examples of proactive and effective customer service. Are you a homebuyer that doesn't live in the immediate area but is interested in seeing the latest stage of construction images? How about a schedule summary or a list of selected options? It's all there -- available via desktop, phone, tablet!

Maybe you're a homeowner with a disturbing leak, leak, leak in the master bathroom shower. No need to wait until 8am, Monday to contact your builder's customer service department. Log-on Sunday night and submit your warranty request -- and then check status on Monday when the office opens.

And, remember: the primary driver of new home buyer referrals is a homebuyer satisfied with their builder's communication process!

What's In Your Tool Belt to Help Build-in Quality?

Interesting MultiFamily Executive article highlighting the growing demand for new housing and resultant labor constraint issues. The demand for labor has emerged as an issue for both single- and multi-family builders, nationwide.

FieldCollaborate
Quality Inspection Checklist

Do you know the last time builders reported such widespread labor shortages was just before 2001?

The demand for labor has forced the use of "B" and "C" quality trades, which will result in more issues and increases the demand for more oversight. Without a well-qualified and experienced labor force, builders are facing increasing quality issues. Field Managers were already being asked to produce more; how best to produce more with better quality?

Technology should be top-of-mind as a way to consistently survey, assess and respond to quality issues. And, mobile technology allows Field Managers to work directly from the job site -- yet remain in contact with vendors and the corporate office.

Quality issues can be observed and reported for followup as punch items and builders are able to create Quality Inspection templates aimed at catching issues as early and consistently as possible.

One big gain with mobile in the quality world is real-time reporting. Take a look at CPS' FieldCollaborate. Field Managers are able to record a quality issue, automatically email the vendor, post the issue to the Portal (including pictures) for vendor review and then close the ticket when resolved. All from their truck or construction trailer.

And, there's also the ability to analyze data over time -- in real time. Are today's problems consistent with issues last week or last month? Is this vendor consistently late or slow to complete tasks? All of that information is available on the mobile device while dealing with today's quality issue.

FieldCollaborate also provides scheduling, punch and safety tools -- as well as a homebuyer information Portal to keep builders in 24/7 communication with their clients.

Home Builders: Interested in a Referral Win?

Had a chance to read an earlier Solutions Blog: Homebuilder #1 Referral Driver: Keeping Buyers Informed? You can read it here.

Communication is the Driver!

Not surprisingly, that Blog is one of our most read posts as it summarizes Eliant CEO Bob Mirman's comments in Builder and Developer, that the single largest referral driver for homebuilders is how well the builder keeps buyers informed regarding the status of construction. 

Mirman suggests: think of the homebuying process as similar to a hospital stay.  Both are stressful -- yet, the stress can be mitigated by information.  No one, basically, likes to be in the dark.  And, with today's social media, bad experiences can be broadcast all too easily.

The same can be said for good experiences, suggests Mirman in the June 2017 Builder and Developer. He notes the #1 driver of buyers' Willingess to Refer a Friend is the ability to keep them informed of their status.

Importantly, Mirman notes, you don't need conversation -- just communication! CPS' software Portals take information developed by Field Collaborate's construction users and WarrantyWatcher's customer service teams and make it available to buyers and home owners via the Internet.

No additional work required: the construction schedule is available for buyers to view. Warranty requests, status and appointments can be seen, as well, via mobile or desktop. In both cases, 24/7, anywhere/anytime!

Builders: Mobile, Proactive Customer Service & Referrals

Today, we're building on thoughts developed in a Solutions Blog How to Improve Your "Refer a Friend" Rate (read it here) and by Eliant's Bob Mirman regarding the referral impact associated with keeping customers informed.

Both articles focus on the value of what we call "proactive customer service" -- that is, not waiting for an event to offer specific, customer-focused attention.  

Mobile Enables Proactive Customer Service moments!

A recent Innovative Retail Technologies article sparked a new thought: the value of mobile relative to proactive. 

Have you heard of the "First Dibs Opportunity" study suggesting 46% of mobile usage sessions start with no real aim? Author Christine Kern also mentions 70% of respondents use their mobile devices to "kill time." 

The study concludes "if smart phones were smart, they'd do a better job of giving us something useful!"

On the other hand, software can help builders turn mobile time into proactive customer service moments! Your homebuyers can grab a minute or two, while waiting in line at the store, to check out stage of construction photos. And, can't you see your buyer getting excited to see a completed roof and turning to the next shopper and saying, "Check this out! My new home's roof was just finished!"

That's a refer a friend moment! Or, how about the impact of a homeowner browsing their service requests while getting a hair cut and seeing a completed service request complete with photo?  Wouldn't that be a "Wow! My builder is letting me know the bathroom repair is complete!" moment?

CPS' FieldCollaborate and WarrantyWatcher Portals can help you easily create these proactive customer service events --  and help your referral rate jump! We're happy to show you how!

Builders: How to Improve Your "Refer a Friend" Rate

Did you see the recent Solutions Blog: Homebuilder #1 Referral Driver: Keeping Buyers Informed? You can read it here.

Keep in Touch & Watch Your Referrals Grow!

Not surprisingly, this Blog is one of our most read posts as it summarizes Bob Mirman's comments (he's Eliant's Founder/CEO), in a Builder and Developer article, that the single largest referral driver for homebuilders is how well the builder keeps buyers informed regarding the status of construction. 

Mirman suggests: think of the homebuying process as similar to a hospital stay.  Both are stressful -- and the stress can be mitigated by information.  No one, basically, likes to be in the dark.  And, with today's social media, bad experiences can be broadcast all too easily.

The same can be said for good experiences, suggests Mirman in the June 2017 Builder and Developer. He notes the #1 driver of buyers' Willingess to Refer a Friend is the ability to keep them informed of their status.

Importantly, Mirman notes, you don't need a conversation -- just communication.  CPS' software Portals take information developed by Field Collaborate's construction users and WarrantyWatcher's customer service team and make it available to buyers and home owners via the Internet.  No additional work required: the construction schedule is available for buyers to view.  Warranty requests, status and appointments can be seen, as well, via mobile or desktop. In both cases, 24/7, anywhere/anytime!

Want to add additional information, become more user friendly? Go the extra step and take stage-of-construction photos and attach them to construction milestones. Add post-repair photos so your homeowner knows how things look before getting home after work.  After all, your buyers have Portal access 24/7 so they're up-to-speed as the work is completed!

Referrals can be your least expensive source of traffic -- and the most rewarding.  Communication is a win-win as your team's results communicate results within the organization -- and are easily viewable by your most important audience, your buyers.

Homebuilder #1 Referral Driver: Keeping Buyers Informed

Eliant, the home building industry's largest firm specializing in managing the consumer experience, notes in a recent Builder & Developer article that the single largest referral driver is how well the builder keeps buyers informed regarding the status of construction!

Keeping Your Buyers & Homeowners Informed 24/7

That statistic is part of a very interesting article by Bob Mirman, Eliant's founder/CEO, as he points out similarities between hospitals and home builders.

Hospitals & home builders, you might ask? Drill down a bit: patients and home buyers are anxious, worried, confused and scared as they're involved in an unfamiliar environment. Not for the same reason but.. still concerned. Mirman suggests empathy goes a long way towards making everyone feel comfortable.

Mirman's second point is the value of contact when delays are encountered -- or anticipated.  He suggests asking: do your employees proactively reach out -- and how?

The third and most critical point is the impact of status updates -- and isn't that the case with most consumer-facing businesses? Mirman noticed and appreciated the daily calls from the assigned staff internist.  He knew he'd get the latest information and didn't need to worry about voicemail, missed calls or miscommunication through a 3rd party.

Think about your operations: how do you keep buyers up-to-date? 

We'd like to suggest taking a look at CPS' FieldCollaborate with its Portal.  Your buyers have access, 24/7, in real-time, to stage-of-construction photos and schedules.  It's their "piece of the pie" automatically generated from use of FieldCollaborate's construction scheduling application.  Tie it to your website and other than taking photos, no extra work is needed on your part.  Status updates are automatic, always visible and right there, 24/7 -- on their desktop, laptop, phone or tablet! 

Referrals can be a key sales driver; we've just learned that status updates are the #1 key referral driver!

Benefits You Can Expect from Award-Winning Builder Warranty Software

It's always exciting to win an award -- and CPS' WarrantyWatcher was selected as a Constructech 2017 Top Product!

WarrantyWatcher: helping warranty operations be more effective!

What benefits can you, as a home builder, expect from this latest release of warranty/customer service cloud-based software?  An award, after all, only goes so far -- there needs to be some meat on the bones!

Home builder warranty/customer service records home buyer service requests, sends out work orders and reports on the results. Those are the basics; when you're looking at becoming more efficient and effective, what does WarrantyWatcher offer?

Why an award? We think there are 3 key points:

1. There are Buyer and Vendor Portals: Make it easy for your buyers to submit service requests via the internet-based Portal and for your warranty staff to utilize the information. It's not email so there's no double input; just review the submitted request, determine that it's appropriate and go! And, your buyers can keep up-to-date on status through the Portal; think of how many phone calls, emails, texts that will be eliminated! Vendors are able to pick-up their work orders through the Portal, indicate availability and, even, receive drawings, photographs or other documents. 
2. WarrantyWatcher is platform agnostic with 24/7, real-time access: That's a bit techie sounding but it means that your staff can utilize the software in the office on their desktop or in the field via tablet or smartphone. And, real-time information is available, 24/7. No waiting for updates or only being able to view some of the information. Responsive design means the view responds to the device in use.
3. It's part of CPS' Enterprise software: Warranty/customer service operations typically take place after the sale closes. All sorts of buyer and construction events have already taken place -- and CPS Enterprise integration means they're available for warranty staff to utilize. Plumbing problem on Lot 47? If your construction operation utilized CPS' FieldCollaborate, you'd already know that Phillips Plumbing worked on Lot 47 (having replaced Standard Plumbing) and that there were upgraded faucets selected in the Design Center through CPS•CRM use. Everyone shares information -- maximizing communication and minimizing inefficiencies. 

Of course, there are all sorts of other great features: an administrative dashboard highlighting your Top 10 problems deserving attention, automated vendor follow-up, Quality Inspection templates for walk throughs -- even integration with Survey Monkey to solicit home buyer's opinions. Let us show you the meat behind the award!

Homebuilders: What's Different About 2017?

Interesting John McManus article in a recent Builderonline titled: Spring 2017: A Different Market. Take a look here.

FieldCollaborate: Tools for Today

McManus suggests that the just out of recovery market of 2 years ago is no longer.  Previously, demand for new homes was from the higher-end buyer.  Buyers weren't too concerned about qualifying and had definite ideas about what they wanted in their new home. To some extent, pricing was elastic.

Today, McManus says, it's a different market.  Now, the growth spot is lower-end, further out geographically with lots of communities open and selling homes. More competition, in other words, with a clear focus on price.

The change has put lots of stress on builders.  Lower sale price homes dictate a focus on margins. Costs are going up. It all translates into more of a push for volume.

McManus quotes a builder: We haven't spent so much time and focus on start-to-completion cycle times in six or seven years as we are right now.  It's really basic stuff of doing what we do, only doing it better and faster. Otherwise, we can't get the margins we need.

This type of market needs tools to help manage, measure and report.  Take a look at CPS' FieldCollaborate -- construction software designed to help you define, track and analyze your cycle time and highlight problems meeting your goals.  Improve communications -- both internally and with vendors. Reduce callbacks with task-specific quality checklists. Keep your field managers off their phones with automated followup and reminders.  We can help you meet the challenges presented in today's market.

Homebuilders: Technology Can Help Address Labor Shortage Issues

We've suggested over the years that automated construction technology not only helps home builders build homes more efficiently, but gives them tools to build with more quality awareness, assess vendor performance and determine trends as they're happening instead of in the rear view mirror. Everyone is having to perform at a higher standard; technology can help you manage the increased workload when one of your inputs is under stress.

Put Technology to Work!

A recent Big Builder article by Don Neff titled Labor and Risk notes the last time labor shortages were as widespread as now was before 2001, and that ongoing shortages are especially challenging in some geographical areas such as Southern California.  Field Managers have had to take on additional tasks — particularly in the area of quality assurance — to get their homes built on time.

How can technology help you address this?  We suggest 3 significant ways:

1. Add Quality Inspection Checklists: Select key, critical tasks (for example slab pour, frame complete, etc.) and associate a checklist to ensure quality meets your objectives.  You now have a consistent, measurable quality standard that keeps the schedule open until it is completed — including vendor payment. You catch issues early and can even add photos or drawings to the record.
2. Utilize Automated Punch Tools: When rework is needed, either as a result of the Checklists or walk-thru, use your scheduling software to associate the punch item with a task and auto-email the vendor.  Take advantage of auto-reminders until the process is complete.  No more phone calls, unanswered emails or slipping through the cracks! Your vendors will appreciate this, as well. 
3. Leverage Available Reporting: Automated scheduling reports provide you with not only the details of what happened but reasons for delays, vendor performance analysis tools and consistent problem identification. You'll know where to focus the most energy.

CPS has been providing construction scheduling software for almost 20 years. Let us show you how FieldCollaborate will help you build more efficiently and profitably!

Leverage Your Construction Scheduling Software to Manage Callbacks

No builder purposefully sets out to have call backs, punch items or warranty claims.  There are the added costs, time and dislocation associated with getting the job done right -- and issues can too easily be splashed across social media.

Build-in quality with scheduling tools!

Builder recently noted, With homeowner scrutiny on the rise, it's a good idea to take a second look at what can go wrong on a job. It's a chance to up your game.

Isn't it better to try to manage the issues before they're able to reach the status of a call back, punch item or warranty claim?

One quality management tool falls within the scope of today's automated construction scheduling software: associating Quality Inspection Checklists with key tasks.

How would that work? Select a key schedule task such as framing complete and develop a series of check points to measure satisfaction that the task is not only complete but meets the desired level of quality.

The task can't be considered complete for scheduling purposes, with an open Quality Inspection, and the vendor can't be paid, either. Both your field manager and vendor are on notice that items need to be addressed -- and they can be reminded on an ongoing basis, as well.

This type of process could be considered building-in quality.  Everyone involved in the job knows that there will be mini walkthru's throughout the job.  Issues can be caught at the key task inspections making resolution more timely as the vendor is available and hasn't yet been paid.  Not only are the issues better able to be resolved but the builder's reputation is enhanced as the buyer walk becomes focused on how the home operates vs. quality punch items.

CPS' FieldCollaborate offers Quality Inspection Checklists along with Punch Item Management as part of the construction scheduling software package.  And, there are Vendor and Buyer Portals, too! All focused on helping you build quality homes, on time!

New Home Construction: Velocity and Profitability

Are you on the construction side of the new homes industry? Great recent Builderonline article by Mary Salmonsen; you can read it here.

Shifting focus to velocity can enhance profitability

Salmonsen highlights one of SAI Consulting Fletcher L. Groves' concerns: the under-consideration of project velocity in builders' business processes.

Or, to paraphrase a comment by John McManus mentioned in a previous Solutions blog: builders need to work with greater velocity or... learn the pain.

In other words, rather than putting a laser focus on individual lot margins, apply some of that attention, data collection and reporting to the amount of time required to build that home. That's cycle time.

Of course, cycle time doesn't live in a vacuum -- and can't be measured in the abstract, either.  Do you have a published schedule -- and do you track progress against it? Does everyone look to a specific schedule or do you have multiples floating within the company?  If there's one, not only can you measure cycle time but you're able to provide consistent, reliable schedules to your vendors.  They're able to better plan and their planning helps them become more consistent, efficient and profitable. That's a win/win!

Are you able to report on which vendors show up on time, or have the highest level of rework, consistently have safety issues, always fail field inspections? That information helps shape a long range vision of your construction cycle and helps deliver consistently better results.  And, it should be available relatively easily and consistently to be effective.

We'd like to suggest CPS'  FieldCollaborate as a software tool to help you develop consistent schedules and measurement tools.  You're able to quantify and measure quality items, delivery times, subcontractor consistency, safety assessments and punch items.  It all helps highlight factors impacting your construction cycle and allows you to be proactive about the next lot, phase and community -- and design for long-term profitability.