Whole House Remodel

Pre-Meeting procedure

Setting the right expectation with ample communication is your first step. This includes showing a mastery of digital tools prior to your on site meeting will help make this new selling reality more successful. Decreasing contacts and increasing efficiency in the sale process is all about how you start the relationship. Clear standards and confidence in your process, even if currently feels unnatural, will set your sales team apart.

With sales you are making a number of contacts with the employee. The house visit and the handshake are two elements that are many of are rightfully critical of at the moment. While being respectful of the homeowner you must set the standard before. Sending over your COVID company policies, like ours https://fleschnerconstruction.com/covid-19-response/. This will give clients an idea of how the house visit will be faciliated. All employees on the walk will be wearing masks and gloves. They will refrain from making physical contact with anyone or anything if possible. There will also be no handshakes as a greeting or as a departing gesture.

On Site Procedures

Once you are on site, it can be difficult to understand the client if both have masks on. Audio levels are muted and facial expressions can’t be deciphered as easily. These challenges necessitate an adjustment. Speaking louder and clearer with simpler term to avoid confusion is key. Using a lot of industry specific terms could confuse your client and/or they may not be able to fully digest your communication. If they have trouble understanding you without seeing much of your face, this can cause a miscommunication that could torpedo your sale.

Getting initial measurements and/or confirming drawing dimensions can be laborious, regardless of COVID. Depending on the size of the project, measurements can take up to an hour on a site visit. A sales partner can help take pictures and notes and assist with more difficult tasks will speed up the process. Make sure to alert the client of the number of people joining you so they can communicate their comfort level.

With the initial meeting done you should have enough to start the clients estimate. The majority of future meetings will move to a digital platform to increase safety and communication efficiency.

Post Meeting Tasks

After the on site meeting is when the real selling begins. Whether it is a large whole house remodel or a small bathroom you want transparency. Disseminating all of the information in to the correct places is your first step. The client should be able to see the process to give them more input is how the project is developed. We like to produce a Rough Order of Magnitude (ROM) sheet that gives clients a quick overview of pricing. This will be adjust as bids roll in, but it helps get the conversation on budget off the ground. This, along with their use of the CoConstruct management system will have them intrigued immediately. Clients will be able to see the project developing in real time and review the progress as they make selections.

Selections

Once they are included in the sales process finalizing selections is important. A word about client selections: you are only as good as your vendors. We spoke about this in a previous post, but its important to remember. With the clients retained, a team of competent and knowledgeable vendors will help get your clients prepared. Although many clients will want to supply their own materials, an introduction can help focus their ideas.

Moving this process along briskly will help control your pre-project costs low. It will also keep your sales pipeline moving, which is even more important with the uncertainty in the market. With these locked in giving the client a realistic estimate on the schedule is more important than ever. Materials are harder to order quickly and with increased safety precautions jobs will slow down. This doesn’t mean that all projects will take three times longer, but setting that expectation early will save on headaches

Post Meeting Tasks

All of our sales processes will be different, regardless of pandemics. We have found that the steps we take help save us time and set expectation early. Too often companies chase down sales that aren’t rock solid and don’t know it until the contract is signed. Installing rock solid policies will make clients feel that you understand how to control an environment and deliver on promises. Consistency is key is times of unrest and taking these steps in the sales process will create a positive effect throughout your company, regardless of uncontrollable elements.

Schedule building and material ordering are vital to a project’s success. Before the pandemic we were experiencing record deliveries in construction, which increased labor demand. Now we are adjusting to a different set of circumstances. COVID has affected every part of our job costing and scheduling. Distrupted supply chains, depressed travel routes, factory delays and safety precautions are more common. So, contractors must be prepared to communicate with their clients more than ever to avoid confusion and costly mistakes that won’t be as easy to remedy. While the CDC Guidelines have been a good starting point we have had to develop policies regarding schedule and material handling.

Materials

Many jobs today have materials coming from all over the world. Appliances from China and stone fabrication from Italy are only a couple of the material dependencies our domestic market has. COVID has decreased factory production in many parts of the world while increasing demand on delivery services. This has the potential to cause a perfect storm of project delays. Shipping times are doubling in most cases and tripling, with some orders dropping out all together. Clients may need to adjust their plans with this in mind.

Good contractors will have knowledge of the production and can provide matching alternatives in domestic markets. As tariffs have pushed some production to resettle in US markets the right vendor should be on top of this. This means they will have done the work to have back up suppliers for things like stone work, electrical and plumbing fixtures and appliances. Even LVT flooring vendors, many of which source from abroad, should start looking domestically. The point is, if your contractor is not being honest about material delays you may have bigger problems.

Scheduling

With extended lead times in mind, communicating with clients early and often is even more important. We are in constant communication with our vendors so we can alert our clients to these roadblocks BEFORE they have started their selection process. Scheduling is the next piece greatly affected. If you already have a job set up, have you ordered your materials? If you haven’t you may be looking at significant delays in schedules. This will push out trades, increase the time you and your team are working on the job site. This, in turn, will increase your liability and your costs.

Get ahead of these issues by communicating with your subcontractors and clients. If a trade has to be pushed back because of new safety guidelines and materials, tell your clients why and for how long. Be specific and have alternatives!! Give them dates and prepare your vendors in case the client needs to make a change that will help the price and overall schedule length. Touch base with your subcontractors regularly to get updates on availability, as they are changing daily. In these times you are the expert and clients will rely on you if you have a clear plan and execute it quickly. It’s important to not back your clients and subs in to a corner, while at the same time communicating clear goals in uncertain time.

Safety?

If we are in the time of COVID isn’t everything about safety? Yes they are and these measures increase job site safety. Material ordering and scheduling are two of the most important functions of a contractor. These times have increased that exponentially and made back end administrative work and communication are even more important. We have seen that open and regular communication keeps on site mistakes to a minimum.

Having a pulse on the supply chain and your subcontractor availability will keep your business serving clients. Start thinking about where you can add value to your clients, and yourself by providing comparable alternatives. Better administrative control is the beginning of all of these changes as well as increased safety. Being mindful about scheduling and materials is helping you client and increasing job site management in a good way There will be changes, but keeping your team safe, your schedule flexible while having a few material back ups will go a long way in winning and completing projects currently.

The past few months have been a confusing and uneasy time for all Americans, even in construction. The spread of COVID-19 illnesses has impacted all parts of our society. As a result we have upgraded our safety procedures, streamline our sale processes and order materials earlier. New policies are impacting our projects and client needs are evolving through this event. We are out in the field working and interacting with clients, vendors, inspectors and subcontractors daily. We know these experience have value. This is part one in a series of posts that address the changes that we’ve seen and implemented.

Our Policies in Action

Uncertainty regarding the future of this virus has affected us all. To respond we have moved to implement stringent policies to keep our clients, subcontractors and employees safe. To do that we have installed bio hazard cleaning zones outside each of our jobs sites and offices. These have a boot washing station, sanitizing spray wipes and disposable masks for any workers who are in need.The next step is our COVID policy manager takes temperatures and records them for our contact tracing program.

Workers granted access to the job site must remain 6 feet away at all times. The tight quarters of residential work makes this difficult. This means that workers who aren’t following the policies will be asked to leave. Fortunately we have an amazing group of subcontractors who have been respectful and vigilant with our new systems. Because of this we have had great feedback from both clients and subcontractors. The end result is all parties feel safer on our job sites than they have elsewhere. For more information on that please check out our COVID policy page: https://fleschnerconstruction.com/covid-19-response/.

With these policies we have had to bake more time into schedules. Subs will have more space to remain within our policy guidelines. Although this extends schedules, it prevents unsafe and crowded conditions with too many workers on a site. This keeps traffic on a job to a minimum. That is harder now as individuals are not able to carpool due to safety concerns. Schedule extensions are affecting not only the work on the job site, but also selections and ordering of materials. In our next post we will look at how scheduling and material orders directly affect homeowners and their projects.

Additional Resources for COVID:

https://www.cdc.gov/coronavirus/2019-ncov/prepare/prevention.html

https://www.osha.gov/Publications/OSHA3990.pdf

https://www.oregon.gov/oha/pages/index.aspx

Warner Pacific University, a 600-student university in Montavilla, on Wednesday launched a new tech school called sourceU. It will offer two degrees that mix liberal arts teaching with coding and cybersecurity training from Epicodus and Ripera.

The two- and four-year courses open in August 2019 and “sticker price” tuition will be approximately $37,000 and $75,000 respectively.

Epicodus is a six-year old coding school in downtown Portland which offers intensive classes. Students work in a flipped classroom, watching lectures at home, then working on projects with teachers in attendance to help them. The school has become known for its no-frills offerings, including a basic introduction to coding which takes place three hours a night, two nights a week, for 15 weeks and costs just $100.

“Warner Pacific’s students are more than 60 percent students of color, and we felt this was a way we could partner with a good organization that’s doing the work in tech, and wrap around their program an accredited degree,” Warner Pacific President Andrea Cook told the Business Tribune.

She said they want to serve students who “often had the sense that they could not do tech” and may be put off by the bro culture of tech firms.

The degree would give the student “the opportunity to get all the training they need through Epicodus and through Ripera, and also end up with a degree that is marketable. It gives them some of the essential skills related to problem solving, critical thinking, and being able to work in teams, that a lot of the organizations indicated they wanted to see for their tech workers.”

School to office pipeline

The idea for sourceU came from a paper written by Luke Goble of Warner Pacific and Ben Sand, to reimagine tech education so that it would be responsive to what the industry wants. It would also be friendly to women and people of color.

They met with more than 100 tech leaders in Portland to ask them what kind of workforce and skills they want. Warner Pacific trustees OK’d it last April and by the fall they had a curriculum, and by December a fully accredited course.

Working with Epicodus, Warner Pacific will offer an associate’s degree in web and mobile development and a bachelor’s degree in digital design. Working with Riperia the university will offer in an associate’s degree in cybersecurity with an IT focus and a bachelor’s degree in cybersecurity.

They will offer Warner Pacific tech courses but in the style of Epicodus, with a flipped classroom, something new to the university but common in e-learning.

It will take 16 months to get the associates degree, 32 months for the bachelors. Students will take regular courses, such as writing and history, although everything will relate to technology. “Ethics and technology,” said Goble, giving an example. “In asking questions about urban life, it’ll be technology and the city. So all of the courses will be tailored around ‘How do we prepare you as a future tech leader?’ but also to teach about the interrelatedness of all things, which is just as useful as the skill to build a website.”

Goble added, “The flipped classroom is a mindset of saying ‘What do I have to do to get students to learn without me talking all the time?'”

IKEA

The school will be built out on the other side of the eighth floor where Epicodus is based. SourceU officials showed off renderings depicting more IKEA cubbies and long tables divided by translucent screens. The design is by Greenbox Architecture and the construction company will be Fleschner Construction. Owner Ashley Fleschner said his company was doing the tenant improvement work at cost.

Epicodus CEO Michael Kaiser-Nyman started his school to make it easier for people to learn coding and other IT skills, and used curriculum based on what skills software developers said they wanted to see in new hires. Traditional computer science degrees were not fulfilling the need. But he also recognized that that employers prefer people with full degrees because it usually means they have learned critical thinking, writing and group communication skills along the way.

In six years at Epicodus, Kaiser-Nyman says a few things have changed. “React has totally changed everything,” he says, talking about a javascript framework for building user interfaces that are dynamic and reactive.

Ben Sand, CEO, Portland Leadership Foundation and advisor to Warner Pacific President Andrea Cook, said that the school aims to shake up the tech world.

“This is about disrupting the tech education space, so we’re intentionally going to be recruiting students of color and women. Will white males be welcome here? Of course, absolutely. But we’re setting out with that intention. And that’s an identity marker of what sourceU will become.”

Cyber house rules

Kris Rosenberg, Riperia’s chief learning officer, was formerly at the Oregon Institute of Technology, Wilsonville campus. A specialist in teaching cybersecurity he said how office IT teams now must be skilled in not only network administration, threat recognition and compliance testing, but also have the human skills to keep users from unsafe practices.

Rosenberg said, “Cybersecurity is not a problem that’s going to be replaced by artificial intelligence. It’s a social issue, it’s a people issue. Training people who understand technology but who have human interaction skills, to develop secure cultures, that’s going to be critical. Also, it’s the highest paying tech job. The median salary is $90,000 a year. So, half the people are making more than that. The salaries in some parts of the country are in the $150,000 to $180,000 range. It’s very, very in demand.”

He added there are 3,000 cybersecurity positions open in the state of Oregon.

Future coding

Kameron Berry a junior at Centennial High School, came because his mom said it was a meeting about college. “Centennial is trying to focus more on coding. We partner with the Center for Advanced Learning, to learn about coding and business stuff, to push us into more realistic opportunities.”

He takes a Javascript class. “I think I’m kinda good at it, but I don’t know.” He says he would put sourceU on his list when it comes to picking a college, but hope to go to college away from Portland and see the world.

1. Labor shortages
The construction industry added 210,000 in 2017 with 30,000 for specialty trades added in December, up from 155,000 in 2016. In a recent survey, 75% of firms want to add to their labor force in 2018. With this new tax cut will companies prioritize training? It is something to watch out for as most firms surveyed, 78% of them that is, are struggling to find skilled labor that can handle the increase in projects. With more money flowing to companies better training programs and promises of better job security are important elements to decrease the labor shortage and retain good employees.

2. New Tech and Drones
Construction technology is creating a success gap in the industry. It has become so important to stay current on the new technology that those who want to learn and adapt are far outpacing those who don’t. Increased emphasis on safety, productivity and labor are all pushing more technological advances into the forefront of the construction site. Drones are conducting site surveys and autonomous equipment make repetitive tasks faster, like the new machines for laying brick and tying rebar. Building information modeling has also exploded because it helps form virtual visualizations of projects to improve productivity, communication, and collaboration. More technologies are being developed to monitor individual worker safety and productivity, but very few details on these products exist, so we’ll have to be patient as they come on the market.

3. Modular and Prefab Construction
Renewed interest in modular and offsite fabrication is going drive material prices all year. Katerra, a full-service construction startup was recently valued at over $1billion, and one of their biggest aspects is prefabrication production and offsite construction. Many firms are committing to building new buildings mostly with modular construction, mainly for bathrooms and smaller guest rooms. This is something the Marriot has committed to doing for their new construction projects in the coming years. This method helps avoid nature caused delays to shorten a production schedule and can save on material prices if they are sourced in a convenient region.

4. Sustainability
Most construction projects now have sustainable methods and materials in mind. Better materials are in demand as people want to use products that are sourced legally and in an environmentally safe way, despite the increased cost. Mass timber projects are becoming more popular, Such as the 220,000 SF T1 building in Minneapolis. It is one of the largest projects of it’s kind in the US and others in Chicago and Atlanta are projected to follow close behind. Recycling of construction waste is gaining traction as well. Waste from demolition and renovation are being diverted to recycling centers to be reused in other applications. Old Concrete is being used as aggregate for new roads. Plastics are being broken down and being reused for countertops and other finish products. As long as companies put a premium on recycling we’ll see some new creative products come to the market very soon.

5. Subdued growth
ConstructConnect’s construction starts forecast for 2018 is a 4.8% increase to $773.1 billion. Commercial construction (offices, parking garages and transportation terminals) is expected to have a 12.4% increase in starts next year with conservative growth out through 2021. Industrial, which includes manufacturing facilities and warehouses, is expected to see a 5.6% decrease in starts in 2018 after seeing a 22.8% increase in 2017. Retail construction starts are expected to decline another 2.8% in 2018 after experiencing a 16.5% drop in 2017.ConstructConnect’s forecast for total construction spending is expected to increase 5.6% to $1,301.3 billion in 2018. Total nonresidential construction is expected to grow 3.9% to $737.2 billion and total residential is forecast to increase 7.8% to $564.1 billion. While these projections are a far cry from the actual numbers in 2017 a small retraction could be good to allow the industry to step back and train more workers for future years where skilled labor is even harder to find.

6. Increased Material Costs
Overall costs are forecasted to increase by 2-3%, after a 2017 that saw prices increase by 3-4%. Enjoy this infographic below that explains the costs of their increases in more detail.

The kitchen remodeling process is one of the greatest projects you will undertake in regards to your house. From starting the remodel to finding a contractor to establishing funding there are many steps that need to be taken. Taking your time and finding a team that you trust with your greatest asset is important. Cost is always a factor but understanding each step and how it will affect your bottom line for years to come makes a world of difference.  Use this infographic as a jumping off point for your next remodel.

From Visually.

Source: BigRentz