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Design Build, Part 2
Years ago it was predicted that design/build was dead or dying. However, to paraphrase Mark Twain, the reports of its death have been greatly exaggerated. To the contrary, design/build is alive and well and continuing to evolve as a very successful operating system for many remodelers. This column continues the discussion begun in September on the significant changes we are seeing design/build companies use. Here are six more hot-off-the-press tips:
1. Schedule Design. Design benefits from scheduling just as construction does. "But," you might be saying, "how can I control the client? Aren't they guiding the schedule?" You as the expert should be setting up the system within which the client operates. They need and want to know how the process works and that includes timing. Soon as they sign that design contract, show them the typical design schedule for a project of their size and complexity. Set those up-front expectations. Will it work every time? No. But it will work often. You will not only be imposing client discipline, you will be imposing discipline on your company not to wallow in the design swamp as so many companies do.
2. Use a Letter of Intent. Many design/build companies suggest that their clients sign some sort of binding legal document once the design is far enough along to meld scope and budget. The client puts up a significant retainer and a place is held for them in the construction schedule. This creates a sense of urgency for signing for construction.
3. Corral the Client Selection Demon. Getting all those client selections is a really difficult issue for all design/build companies and is magnified when you work with the truly wealthy client. There is no perfect solution, but there are some helpful suggestions. One company puts the company selections in bold in each area of their selections form and then replaces them with the client's preference as they are chosen. Construction continues and if the client cannot make a selection on time, the company installs their own selection.
If that solution scares you, try a carrot instead of a stick. Another company builds a 2% bonus line item into the bid and if the client makes all selections on time (as scheduled by the company), they get this 2% as a bonus -- which they undoubtedly turn around and spend on more remodeling.
Here's another carrot approach. Build 10 hours of an interior designer's time into the contract. The designer will help in the selection process, probably get some additional work out of it, and the project will be even more eye-catching because of the creative talent of the expert.
4. Start Using a Procurement Schedule. A procurement schedule is a subschedule of your overall production schedule. It details all the steps involved with the acquisition of special order materials for the project. If we need the bath ceramic tile by a certain date to keep the job schedule on track, we can back track and figure out by when it has to be ordered, by when the client needs to make a firm selection, and by when the special design for how the tile is to be installed must be finished. This schedule may tell us that to start installing the tile by February 20th, we need to start the process by November 18th. You can speed up labor but you can't usually speed up materials. The flow of customer materials to the job becomes the critical path.
5. Add a Packager. As design/build companies grow, they often grow a totally new position for a detail-oriented person who will take rough paperwork from sales and package it for production according to the company system. So often, top salespeople are not detail people and yet production needs to have all those details pinned down before the job begins. Sometimes this person is also the estimator in a smaller company. It can be a position that more than pays its way.
6. Standardize, Standardize, Standardize. Are the products you supply standardized with exceptions made for custom selections by the client? Do your subs have a list of standard specifications that will prevail unless otherwise noted in the paperwork? Are your plans standardized as to what information must be on them and exactly where that information will be found? Standardization, even in a custom business, will save you time and money and reduce errors.
Remodeling is an industry that can be slow to change. But by getting out and about with your fellow remodelers, you'll be on the cutting edge of the innovations that occur. So get schmoozing. The yearly October Remodelers Show is a great place to start.
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Remodelers Advantage Inc.
535 Main Street, Suite 211
Laurel, MD 20707
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