Key Takeaways:
- Property owners struggle to know how their custom home or construction remodeling project is being managed, whether they’re around or not.
- Southwest Florida owners need someone on “their side” to protect their interests.
- Construction project management services can provide owners with peace of mind – even when they are away.
- NCHCC provides owners with Owner Representative services to ensure the proper management and success of their custom home or construction remodeling projects.
“When the cat’s away, the mice will play.” That saying applies to your construction project, too.
When you’re in town, your Builder is on their best behavior. They are responsive, attentive, and even proactive. But when you head back up north? Meh…not so much.
When Owners with ongoing Construction Projects leave town, their Builders become lax. Their “sense of urgency” fades. Communications slow. Timelines get fuzzy. Corners get cut. And somehow… The costs keep climbing.
“Out of Sight, Out of Mind”
Builders in Florida struggle to be diligent to begin with, and the circumstances in the local construction market don’t help.
Labor shortages have always been a problem. As fewer tradespeople enter the workforce and more of the skilled workers age and retire, the problem will only continue. Highly skilled professionals are already rare. That means there are even fewer qualified Subcontractors – both available and able – to perform the “high-end” work that is so prevalent in Southwest Florida.
The “high-end” work is done primarily under Cost-Plus Fee Contracts. The “high-end” work most Owners have Contracted for and expect. How can you know where your Builder stands in this Subcontractor market?
Builders, too, struggle to find and retain professionals for their own companies. Quality Administrators (Estimators and Purchasing Agents, in particular) are scarce. Consequently, poor or inconsistent communication and weak, confusing reporting are the norm. Builders are competing for all of these resources. How good is the service your builder provides you? How accurate is the information?
When navigating the market, Builders must consider all of the projects they have underway. How can you be certain they are prioritizing YOUR Project?
The Industry is also highly networked – from the Builder through the smallest Subcontractor. There are longstanding relationships in place before you came along, and those are intended to still be in place long after your Project is complete. Builders foster these relationships to try to maintain their leverage in this “inverted market”.
In doing so, they become averse to obtaining competitive bids from different Subcontractors for the work to be done. How can you be certain that your Builder is doing all they can to control the costs that ultimately get passed on to you?
To try to compensate, Builders will hire Subcontractors at a premium. If they really fall behind, they will “throw the kitchen sink” to get your job completed – including additional manpower and overtime. Whatever it takes, with little regard for the costs of doing so.
Cost tracking, “buy-out”, reporting, and administration are difficult and labor-intensive. Multiple jobs are constantly being juggled. That means that some projects must be a lower priority than others. If it is THEIR Project (a Fixed-Price Contract, Model, or Spec home), you can be sure that it will be a high priority. Yet most Owners have Cost-Plus Fee Contracts that absolve the Builder of most of the risk.
Given all these circumstances, how can you be confident that all that can be done to manage your Project is being done?
With their Clients away, Builders are further empowered – and naturally inclined – to take the actions and tactics that they too often do. Most local Builders aren’t actively trying to take advantage of Owners. They didn’t “stack the deck” – it’s all they can do to “play” the multiple hands they have!
The problem isn’t what they are doing, it’s what they are NOT doing: providing clients with diligent, thorough, and accurate Project Management. They intend to and try, but performing that work is hard, and they aren’t proficient at it. They have no obligation to do it to any measurable extent. Lacking motivation and given the circumstances, it’s understandable that they struggle with it. For most Builders, “it’s not personal, it’s just business.”
“Opportunity Makes a Thief”
That said, owners are still highly susceptible to being taken advantage of. Ultimately, Builders must – and will – put their best interests ahead of yours. And who pays for all of the Project’s costs, no matter what they end up being or how they come to pass? Owners do.
“An Ounce of Prevention is Worth a Pound of Cure”
Owners can’t really know or control the level of effort a Builder puts into managing their Project, but NCHCC can. By allowing NCHCC to “push back” against the prevailing circumstances, Owners can be empowered….
- To make highly-informed decisions Pre-Contract and throughout the course of construction.
- To ensure their Project is and remains their Builder’s top priority.
- To control the “Budget Creep” that is characteristic of almost every construction Project and hold Builders accountable to them and the Contract.
As your Owner’s Representative, we stay local—your eyes, ears, and boots on the ground. We make sure your Builder stays engaged. Far from being “anti-Builder,” NCHCC actually helps Builders by facilitating the process. We keep your project moving, your budget in check, and your Builder accountable even when you’re miles away. Your peace of mind shouldn’t require you to purchase plane tickets.
Your Watch Dog – What it All Means
Knowledge is power, but it’s also security and peace of mind. In construction and project management, nothing could be truer. Many owners, real estate investors (REIs), real estate agent or others working with builders may not have all the knowledge they need to protect themselves and their projects from the many different risks involved. If you don’t know what you’re entitled to, how could you know to ask for it? Without knowledge of your rights, how can you defend them?
Fortunately, that kind of expertise and the knowledge owners need to understand and properly manage their construction projects is available. With help from NCHCC, property and home owners ensure they are getting what they are paying for and the home they envisioned, too.
