This is a question more people are asking right now. I have addressed a few simple questions that you can ask to get a better understanding of a builders' administration capability previously. This is going to be crucial to ensure you qualify for those all-important government incentives. The next part of the process is even more important.
Can the builder deliver on the quality of construction and time frames during construction?
Assuming the increase in the number of new homes sold makes it into construction, it is likely that the number of homes on-site will increase dramatically in the next six months.
So how can you be sure you choose a builder is capable of delivering?
Understanding how to use the resources you have to your advantage is key. Sales consultants get paid via commission from the builder if you build. Some sales consultants are not employed by the builder they are separate companies. Transactions with multiple entities can be complicated so do your research on where you stand. If a sales consultant operating as a company gives you incorrect information by mistake will it affect you?
Knowing some questions to ask will help.
In busy times you must test the gap between sales, marketing, and delivery of the building. This will help you work out if the builder has the resources to deliver you a quality home. Even the worse sales consultant will be able to tell you why their company can deliver on your new home. Given their income depends on this its likely to be backed up with some sort of glossy marketing material. Don't ask soft questions. What you need to do is to identify facts not good intentions. This could be the largest investment of your life!!!
Some better questions to ask are based on obtaining material facts to make an informed decision.
Can I view a construction list?
You need to see evidence of the number of homes on the construction list. Ask a builder to provide this so you can physically see the total number. Note: More or less is not necessarily better but you need to know this number.
How many supervisors do you have?
Next, you need to see evidence of the number of supervisors currently employed. Supervisors have a list of homes assigned to them so you can see how many homes each supervisor is currently building. If you cant get this list you can do the math to work out the average total number of homes per supervisor.
If you followed the last bog you already asked for information about the increase in sales for the past few months so you can apply the percentage increase in sales to the number. Then work out the supervisor's capacity to deal with the increased workload when distributed.
How will you deliver on service and time frames?
The overall costs that go into a home are very similar across the larger builders in the same market segment. By operating with fewer people it is possible to reduce the price but its often at the expense of service and quality. The quality I refer to is not stone tops or appliances but the ability to build the home on time with accuracy. In this market, the prospect of higher volumes will put pressure on builders' low overheads. They will have less capacity to deal with increasing workloads due to the short time frame of the work bubble.
It is important to understand that builders just like anyone else make more mistakes the busier they are. All businesses that get busier experience an increase in pressure at work. This can lead to a higher turn over of staff. Turn over of staff in the building industry can further amplify the mistakes. Knowing how prepared your builder is for this is crucial.
Asking the right questions and obtaining evidence is crucial. A sales consultant may have great intentions but you want evidence not belief.
The company might have intentions of hiring an extra 5 supervisors and train them while dealing with the increased work. With such a short window it's hard to see this strategy being effective. After all, it is a well-known fact that production dips before it improves when you hire new people as resources are used to train.
Understanding these facts will help you set realistic expectations and may help you avoid expensive mistakes.
At Piran Property Group our experience is your advantage so if you have any questions about building or Property contact us today
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