IT'S BEEN SAID THAT TOTAL quality builders are highly productive and build homes more efficiently than other builders, so it makes sense that they would also enjoy higher profits, greater customer satisfaction, and fewer defects. Results of a recent NAHB Research Center survey of National Housing Quality (NHQ) program participants emphasize that very point, underscoring the program's positive impact on productivity, profitability, and customer satisfaction ratings.
Launched in 2005, the NHQ Program certifies builders and trades striving to “build it right the first time, every time,” rather than waste time and money inspecting problems out of homes. Survey results prove that these companies have realized measurable business improvements and significant increases in productivity and profitability, as well as increased customer satisfaction as evidenced in home buyer feedback surveys. Responses from builders revealed that over 70 percent had improved their bottom lines and over 75 percent reported a reduction in callbacks.
Notably, in some markets, NHQ-certified builders have experienced a bump up in the J.D. Power rankings. Tim Lewis Communities of Sacramento, Calif., increased its rank to among the top three in customer satisfaction for the market according to the J.D. Power and Associates “2006 New Home BUILDER Customer Satisfaction Survey.”
A companion survey of NHQ-certified trade contractors reveals that the operational improvements achieved with the builder program are not one-sided. Over 80 percent reduced callbacks, 88 percent reported an increase in employee accountability, 79 percent improved relationships with builders, and over 65 percent improved their bottom lines.
For more information on the National Housing Quality program, visit www.nahbrc.org.