Successful home building is much more than just closing large numbers of units, yet volume remains a distraction in the industry.
Because the trust created in the contracting and construction stages quickly evaporates when a builder fails to meet the specified closing date. When a builder develops a thorough understanding of the processes involved from sale to closing, he can prevent negative customer sentiment by implementing new ways to manage and control the construction process, eliminating unnecessary days between contracting and closing each home.
Experts note that with the largest builders now approaching 30,000 units, it won't be long before public builders announce goals of delivering 50,000 homes.Adding a new builder to a market (or becoming bigger within a market) does not increase market demand; it simply divides market share.
The home builder's search for a legitimate fit with the Internet has felt like the endless search for the Holy Grail. And the Web does it cheaper and better.There are many Internet applications that promise improved processes and increased profitability for a builder by reducing mistakes, and improving purchasing efficiencies and cycle times.
Though the amount of money paid to electricians, framers, plumbers, and other trades is significant, focusing on price to the exclusion of other substantial issues, like quality construction and cycle time, overlooks a rich opportunity not only to reduce price, but also to develop an effective, efficient, and cooperative production team. You then increase your chances of having a successful business discussion of possible price reductions tied to savings in time or material. The differences between planned schedule completion and the actual results, when analyzed, usually have more to do with a lack of continuous construction activity on the jobsite than they do with poorly prepared schedules.
