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!

Builders: Electronic Signature Key to Improving Efficiency & Satisfaction

Builder Hot Topics: Efficiency, Productivity, Buyer Experience

The Solutions Blog has devoted quite a bit of virtual space focused on improving efficiency and productivity -- particularly on the operations side of homebuilding. Take a look at recent Blog articles:

• Builders: Increasing Productivity Helps Offset Labor Costs & Availability
• What Can Builders Do to Up Their Productivity?

Efficiency, Productivity to Buyer Experience

We've also been talking about the Home Buyer Experience -- before, during and after the new home purchase:

• Customer Service: A New Paradigm for Builders
• Have You Asked: What is Our Buyer Experience Gap?
• Builders: Consider Value-Unique Experiences

CRM Offers Experience and Efficiency Opportunity, too!

One key concept emerges from all the articles highlighted above: the builder's universe is expanding! There aren't any islands left, in other words! Thinking about buyer experience is no longer limited to the sales office or marketing. It encompasses operations -- from construction to warranty, too. 

Efficiency can be thought of similarly: how long does it take your sales agents to process a sale? Do you have 25-40 documents ranging from Purchase Agreement to Options Orders to Avigation (yes; that's a real word!!) Disclosures?

Document Processing is More than Creation; Consider These Stats

How long does it take for your agent to generate these documents -- and how many signatures are required? Do you realize that 37% of documents are missing a necessary signature, initials or dates?

And, many people don't always consider the post-signature activities required to support documents: that's the proper collection, filing and retention. 51% of businesses report that some or all of the documents needed are mis-filed or lost!

Efficiency, Productivity Moves Beyond Operations!

In other words, are you certain that Lot 55's purchase agreement package is completely processed, stored properly and accessible?

Electronic Signature Can Go Beyond Purchase Agreements!

You're probably familiar with electronic document signature processing as it relates to purchase agreements (CPS CRM, for example, provides seamless integration with DocuSign to obtain signatures for all documents, distribute the documents amongst all necessary entities in a specified order and save a completely executed set). And, the value is not only for the builder: buyers appreciate the ease and ability to obtain and store a full set of accessible, executed documents. That doesn't even take into consideration processing a sale with buyers in multiple locations!

And, have you considered the value of electronic signature for your warranty/customer service operations? Why not provide your customer service rep or vendors with the ability to accept electronic signature on work orders via phone or tablet? CPS WarrantyWatcher does exactly that -- and keeps a copy in the lot's permanent history file, as well!

There's now another touchpoint (or two!!) for improving efficiency, productivity and the buyer experience!

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.

Homebuilder Vendor & Buyer Portals Improve Efficiency & Productivity

Are you familiar with the concept of a Portal -- sometimes referred to as a neutral platform in the cloud?

Portals provide users with the ability to view -- and sometimes update -- information developed by a variety of systems and managed by different organizations in a single location. Typically, they're accessible via the Internet and available, anytime/anywhere.

What can a construction Portal do for your organization, vendors and/or buyers? An effective Portal provides data access, governed by credentials, to all appropriate stakeholders.

Let's take a look at a real-world example: vendors log into CPS' FieldCollaborate Portal to view or print their construction schedules, punch items, and safety assessments.  In addition, they're able to view the latest builder documents and drawings.

Home buyers, on the other hand, log into the FieldCollaborate Portal and find their home's schedule as well as stage-of-construction photos.

If we consider just this set of participants, can you think of the reduced number of phone calls, faxes, emails and misunderstandings? Portals make the entire enterprise more efficient and productive!  Home buyers feel empowered and their satisfaction levels improve, as well.

Home builders use Portals to share information internally, as well.  What's more disruptive than having multiple sources for information?  A well-managed Portal provides the same information to everyone (governed by access credentials, of course) -- and it's all available anywhere, anytime via the cloud!