Tag Archives: project management software

Is Housing an important political issue? Most homebuyers don’t realize that it is.

A recent survey conducted last month by Redfin Real Estate Brokerage, showed that most homebuyers don’t see Housing as an important political issue for this year’s elections.

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When asked about how a newly-elected president can affect the housing market, 75% of the respondents believed that the winner won’t affect the industry that much. 15% said that the next president can worsen the current housing market, while only 11% believed that out next leader can improve it.

For the average homebuyer, an individual’s decision to purchase a house is personal, not political. 29% of the survey respondents stated that their decision to buy was brought about by a major life event such as a wedding or having kids. The second most-cited reason for buying, according to the survey, was rent fluctuations- usually, the rent is becoming too high for most people.

Issues such as rent hikes, school quality, accessible city infrastructure, sufficient parking spaces, the availability of green spaces, urban planning and zoning, property taxes… all of these factors are unquestionably political. These are the most common considerations for people before purchasing a house, and we can’t deny that they are linked to good governance.

State and local races are therefore the concern of every citizen.

But what about for the national candidates? Well, housing accounts for roughly 18% of our nation’s economy. Taxpayers back most US home loans, whether directly or indirectly. The Federal Reserve sets monetary policy, which then in turn affects mortgage rates. The US Congress determines fiscal policy and therefore has the power to decide on issues about mortgage tax deductions and tax breaks. Furthermore, national environmental and safety laws can hugely affect how and where your house will be built.

According to Redfin Chief Economist, Nela Richardson, “Housing is seen by the government as an engine of wealth creation for the middle class. With income inequality a growing concern, housing still plays a crucial role in economic well-being for most families and that’s an issue worth voting for.”

In addition, our next president will also be forced to set a national housing agenda whether he wants to or not.

So in the end, your vote still does matter. As homeowners, builders, and contractors, we all have a stake in this. As informed industry professionals, let us do our part in reminding the public about how every vote truly counts.

 

To know more about how builders and contractors can efficiently address stringent project management requirements, let us introduce you to SAM. 

ABC Launches “Building America: The Merit Shop Scorecard”

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Associated Builders and Contractors (ABC) launched an online scorecard that will review and grade state-specific policies affecting the construction industry. “Building America: The Merit Shop Scorecard” is a website where builders, contractors and suppliers can view which states have created beneficial or subpar environments for the construction industry.

Quick Overview about the Associated Builders and Contractors (ABC)

Associated Builders and Contractors (ABC) is a national construction industry trade association representing nearly 21,000 chapter members. Founded on the merit shop philosophy, ABC and its 70 chapters help members develop people, win work and deliver that work safely, ethically, profitably and for the betterment of the communities in which ABC and its members work. ABC’s membership represents all specialties within the U.S. construction industry.

What is Building America: The Merit Shop Scorecard?

Building America: The Merit Shop Scorecard reviews and ranks state-specific information that is significant to the construction industry. The scorecard is a tool to identify states that are embracing the merit shop philosophy via legislation, policies, priorities and valuable programs, as well as highlight states where proactive and strategic improvements need to be executed to create an environment conducive to the industry’s needs. Rankings have been assigned primarily based on the core issues concerning merit shop construction, including state policies on Right to Work, prevailing wage and government-mandated project labor agreements.

US States are ranked based on how construction-friendly they are

Overall ranking (1-51) is determined through a combined score of the seven graded criteria. Ties in combined score being broken by performance on ABC core issues, with secondary consideration given to additional graded criteria.

Every state received a score in each of the following seven categories measuring critical laws, programs, policies, and statistics impacting the merit shop contracting community. An overall comparative ranking was then assigned to each state by considering all measured categories, with particular emphasis given to the first three criteria of project labor agreements, prevailing wage, and Right to Work state laws and/or executive orders.

Ties in combined score were broken by performance on ABC core issues and a consideration of the other scored criteria grades.

  • Project Labor Agreements –  State policies on government-mandated PLAs on public and publically assisted projects.
  • Prevailing Wage – State policies requiring contractors performing work on contracts procured by public entities or with a certain threshold of public funding to pay a government-determined prevailing wage to construction workers employed on a contract subject to the requirements. 
  • Right to Work – Right to Work law or other statutory protection of a worker’s right to secure employment without being forced to join a union.
  • Public-Private Partnerships (P3s) – State allows public sector entities to enter into contracts with private sector entities in which both sectors share the risk and revenue from a project.
  • Workforce Development – State provides financial incentives directly to employers or associations that train their workers through registered apprenticeship programs or other industry-recognized programs like those provided by NCCER (formerly the National Center for Construction Education and Research); state provides financial incentives to employers that hire workers that possess an industry-recognized credential or are a graduate of a registered apprenticeship program.
  • Education – State policy allows for flexible high school curriculum standards that promote rigorous and relevant skilled trades and career and technical education (CTE) opportunities for career readiness, as well as college preparation opportunities.
  • Job Growth Rate – Data provides the Compound Annual Growth Rate in construction from 2011 to 2015 using data from the month of August. States with a higher growth rate were given higher scores than states that had a low or negative growth rate.
  • Prompt Pay – State has public and private prompt pay requirements for owners and higher tier contractors to pay subcontractors.
  • Immigration/E-Verify  – Identifies states that require employers or state contractors to utilize E-Verify. ABC National’s immigration policy calls for federal preemption of state-level immigration-related requirements. 
  • State GDP – Percentage of state GDP directly resulting from nonresidential construction (2013).
  • 2013 Incidence Rate – Data tracks the 2013 incidence rate in construction, which is collected and reported by the Bureau of Labor Statistics (BLS). This is a lagging indicator, with 2013 being the most recent information reported through the BLS survey process. The rate is calculated as the number of incidents per 100 full-time workers. While this is important information to have on hand, it remains non-scored because the variables that affect incidence rates are numerous and require much greater context to demonstrate the specific conditions that lead to lower rates.
  • Occupational Safety and Health Oversight – State occupational safety and health entities versus states controlled by the federal Occupation Safety and Health Administration.
  • Construction Industry Unionization Rate – Data indicates how many and what percentage of a state’s construction workforce belonged to a labor union in 2014.

Visit their website and view the scores at www.meritshopscorecard.org.

Home-Buyers Don’t Want Fast, They Want Instant

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Once upon a time, our definition of “fast” meant overnight FedEx deliveries. People were even willing to pay premium for that kind of service. But the thing is, customers no longer want “fast”.

In a word where Google offers answers to just about any question within the span of a few blinks, where you can easily download an app if the need arises, where high-speed networks are the norm… your business has to keep up!

The web and the latest advancements in technology have conditioned us into thinking that we can get what we want, whenever we want, wherever we may be (as long as there’s good signal).

On-Demand Builder

So of course, clients expect you to be an on-demand homebuilder, an on-demand project manager. They demand responsiveness. After all, building a home is probably one of their biggest investments ever. An immensely critical decision. Something that is circling their minds 24×7.

Communication

So how will you address it? Email takes forever. Voicemail takes too long. People are even developing aversion to phone calls. These days, people would much rather text, chat, Viber, Whatsapp, Snapchat, and so on. Digital conversations. Conversations that immediately go back and forth.

This becomes very tricky for builders because we all know that our clients don’t necessarily understand the meaning of  “business hours”. Out-of-office communication for us has long been the norm. Today, they just want it done much, much quicker.

Sharing Files

File-sharing apps and websites have become prevalent in recent years. Clients want quick access to files. And in addition, these files have to be within reach on different devices. If you’re talking about revisions or changes in the design, they want to be able to see it whether they’re on their phone, tablet, laptop or desktop.

Schedule Updates

When a client ask you about the progress of their home, you have to be able to answer confidently almost instantly (more so if you are face to face). Taking too long will hurt your credibility. Giving vague answers will plant doubts in your client’s mind. As a responsible homebuilder, you should incorporate effective project management tools in your business, so that answers are readily available to you in just a few clicks. Since your customers demand information fast, you have to prepare accodingly.

One of best tools for this is SAM – The Superintendent’s Automated Manager. SAM will veer you away from messy and complicated paper schedules, ensuring that everything is digitized, editable and quickly within reach. It will help you to keep key personnel updated on project milestones, as well as with schedule changes. You can input tasks, deliveries and meetings in SAM, and even get project reports at the push of a button.

Keep up and Stay Ahead

Technology is ever-changing and customers are getting more demanding. If you don’t evolve with them, your company will get left behind. So today put yourself in the shoes of your clients and imagine how they crave and ask for information. And always remember that these days, just “fast” is no longer acceptable.

10 Most Common Complaints that Builders Get

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Unhappy clients can spell big trouble for your business. Just one sour project can snowball into a bad reputation. And of course, we all know that word of mouth spreads like wildfire, especially if the source is extra passionate due to extreme anger.

Prevention is better than cure. So before you run into a big mess, we’re listing down the 10 most common problems that construction clients complain about. Take down notes because these are the issues that you need to avoid.

1. Poor Work Quality

This is the most basic of problems when it comes to construction. The outcome of any project is the main determining factor of whether or not your client is happy with your work. This is where your construction managers come in. There has to be a good system of checks and balances throughout the construction process. It’s also important to ensure that you are getting professionals for your team. Newbies are welcome too, provided that they are well supervised by pros.

2. Failure to Turn Up or Arrive on Time

Business is all about building relationships and that’s why it’s so important to start off on the right foot. The most crucial is on day one of the project. Your crew should be on-site early. Punctuality is a sign of professionalism so it’s a must to reinforce this with your on-site crew.

3. Messiness, Failure to Clean Up

Okay, so with #2 it’s all about first impressions last. What we need to remember is that lasting impressions are important too! Never leave the site in a state of mess. Whether it’s a small home renovation or a brand-new build, a clean-up crew should make the place presentable. It’s also important to clean up at the end of every work day as this is helps motivate the crew for tomorrow’s fresh start. It’s also vital for avoiding work area accidents.

4. Asking for More Money than Agreed

Clients are always on a budget. Period. So unexpected jumps in project cost will surely be met with angst and hesitation. This can be solved by proper planning and adding a bit of a buffer for emergencies.

5. Proposed More Work than Necessary

In simple terms this is called cheating. Please, if you want to stay in business for a long time, always make it a point to provide true value for your customers. These days, it’s so easy to communicate with other people, plus there’s so much research that can be done on the internet. It’s quite hard to outsmart well-researched clients.

6. Failure to Do All the Work Required

There is nothing more infuriating than a contract that’s been fully paid and yet, not fully accomplished. This could be deliberate, or this could be an honest mistake from your end. Again, the key is a good monitoring and reporting system to ensure that all tasks are performed well.

7. Causing Damage to Property

Save yourself from the headaches of a lawsuit, and avoid damaging the property of your clients. It’s as simple as that.

8. Disputes Over When to Pay

Most of us charge based on progress billing or milestones. Make sure that you and your client are always on the same page over these things. Clarify the details of the contract prior to the actual build process and give them constant updates as to the progress.

9. Miscommunication Between You and Client

Are you always hard to come by? How quickly do you respond to their inquiries? Who is their point-person for any issues that may arise? How often do the clients get updates regarding accomplishments and milestones? What is your agreed method of communication? Minor miscommunication can lead to big problems if you don’t have the proper systems in place.

10. Delays Over Completion

Imagine yourself getting all excited (for months) to live inside your dream home. You’ve spent money renting a smaller place for the meantime, or you’ve been living with a friend or some relatives during the construction. You may have also spent money for temporary storage of your belongings… And then right when you’re ready to move in, BOOM! There’s a 2-week delay. Actually, even a week or a few days of delay is enough to infuriate any client. Again, this will end the project on a bad note which is a big no-no!

And there you have it. The 10 most common complaints that builders get from their clients. Make sure to avoid them before it’s too late.

If you think about it, most of these problems can be solved by proper communication, sufficient planning and effective project management– the keys to the success of any construction business. Now it’s up to you to create happy customers!

 

First-time Buyers, Significant Chunk of Housing Market

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August 2015 Homebuyers Trend

According to data from The National Association of Realtors, 32% of existing-home sales in August 2015 came from first-time buyers. In fact, first-time buyer share increased by 4 percentage points from July 2015. Their buyer share also increased by 3% compared to last year.

When we say first-time buyers, this means, first-time homeowners. A demographic that is relatively young. This group is typically composed of young couples, young professionals, and people who are just about to start a family. Previous renters, who now have the capability to buy their very own house, are also part of this demographic.

So what’s the reason behind the powerful spending power of first-time buyers?

This increase in the spending habits of first-time buyers is due to sustained net job creation, a low interest rate environment (with 30-year fixed rates at below four percent for most of 2015), and better pricing of FHA-insured mortgages.

Low Interest Rates for the Rest of 2015

Rates are expected to remain around 0 to 0.25 percent at the end of 2015. The Federal Open market Committee announced today that the benchmark interest rate for short-term lending will remain at its current target level of 0 percent to 0.25 percent. According to Zillow Chief Economist, Svenja Gudell, “The federal funds rate, and in turn mortgage rates, remain low and will likely end the year roughly where they started it.”

This is good news for prospective new homebuyers who will remain to have some valuable wiggle room in terms of affordable markets.

The Builder Challenge

So, if you look at the statistics closely, it says that the 32% is for existing-home sales. This means that there is an equally ripe market for first-time homeowners who want to build their homes. Today’s generation is all about customization and personalization so there’s a huge chance that they will prefer a home that’s built specifically for them, instead of an old house that’s already out there. This is regardless of size.

In addition to this, even if they do buy existing homes, there is a huge potential for renovations and personalization. So for us builders, there is still a lot of opportunity that’s waiting to be seized.

The challenge is now up to you. How can you convince these buyers to spend their resources on building a new home instead of simply buying existing property?

How can you entice them to seal the deal with you instead of with previous homeowners?

How will you make your company stand out from other competing firms in your area? Will you charm them with unique design? Attract them with affordability? Or dazzle them with how fast you can hand-over their new house keys?

It’s up to you, dear builders. The clients are out there and the market is strong. Go get ém!