Interesting book review of this in today’s Wall Street Journal.
The author, in his criticism of all types of construction, from big time commercial work all the way to simple residential room remodels, makes the premise that too much of construction’s cost overruns are caused by predatory contractors walking all over customers either unwilling or unable to be both construction-savvy and demanding.
The reviewer cites the famous Ara Hovnanian quip, in which the methods used by contractors are largely “200 years of tradition unhampered by progress.”
Replies
When I read your title I thought you ment the Big Dig. LOL
I think too many overruns result from the fact that you have to compete against a slew of folks who are no good at bidding. They bid too low on accident, and then either eat the job or go over. Over time, the market drives them out of business, but other fools replace them. You end up competing against a low bid that is perpetually under the true cost. You have to either lowball (and hit them with hidden but foreseeable overruns, which is bad) or convince the clients you are worth more.
I could not agree with you more. the successful folks are those that can sell their customers on why they cost "more".I'd also like to say how much i hate all these dumb shows on HGTV, etc. that make it seem like you can redo your whole house for $10k; or that you can "remodel" your bathroom for $5k. I'm sorry but a new toilet, a new vanity, and fresh coat of paint do not constitute remodeling.
""I'm sorry but a new toilet, a new vanity, and fresh coat of paint do not constitute remodeling."" Well you and my ex wife at least agree on one thing.
;-)
They can't get your Goat if you don't tell them where it is hidden.
If it isn't remodeling, what is it? Bob's next test date: 12/10/07
Decorating.
Just like a haircut aint brain surgery.Remodeling Contractor just on the other side of the Glass City
all these dumb shows on HGTV
Yeah, they're dumb, but they're something you have to deal with. I've been working those shows into the conversation with prospective customers so I can get an idea of how much they actually believe what they see. Most of the time, I can introduce some level of reality, but a few just don't get it.
A couple of weeks ago, I was talking to a young couple who mentioned a teaser for a DIY show that has the "host" telling a homeowner that they will get back $2 for every $1 they spend. They were pretty disappointed when I told them that the only way that could happen is if they actually did everything themselves. As soon as they hired some help, the "return" was going to drop substantially.
Those DIY shows rarely mention any costs besides materials. The "pros" on the shows are being paid by the producers - as are the other "pros" who never get on camera. The project that was completed in 30 minutes on TV actually took much longer. Longer, in fact, than a "real" project since they had to schedule a lot of the work around a taping schedule.
You are probably on the right track Dave, if you remodel a lot, by watching those shows and using your common viewing habits to interact with your clients. I typically don't watch many of them at all, so I would be missing a major opportunity to create a common point of view if I was out there selling home improvements. Good post! Bob's next test date: 12/10/07
The majority of my business, these days, is custom cabinets and furniture. At 62, my "blow and go" remodeling days are a distant memory. - lol
Many of my customers are doing remodeling as well as cabinetry, so the subject comes up pretty naturally. I'm beginning to think that - since I'm not bidding on the whole remodeling job - what I say is seen as being more objective. I've also noticed that some of these customers are younger than my kids. I often shift into "Dad" mode and talk them thru a project explaining things from a "been there, done that" perspective.
I'm no fan of HGTV, but SWMBO is. If I'm watching one of those shows, it's because she has a death grip on the remote. If I have custody of it, I'm skipping right past them. - lol
I was watching one of those "flip this house" type shows today. The numbers they presented were like - buy for $300k, spend $75k on improvements, and sell for $475k equals $100k "profit". Uh.... leme see... What about RE agent fees, loan costs and payments, insurance, overhead, etc, etc, not to mention that the "flipper" invested at least a few months of his time into the project...
I've never figured why someone will easily pay a car mechanic $65 an hour, but balk for a $15 dollar an hour carpenter or roofer. Then brag about how cheap they got him, right before they want you to fix whatever the lowball screwed up.
Friend of mine owned an agricultural fertilizer delivery truck. Said he had to get out of it because he was competing with guys who had no idea of their total costs. They ran themselves out of business, but since he was delivering a commodity he had no way to make a profit either.++++++++++++++++++
"Where will our children find their enjoyment when everything gets itself done by steam? Frederick Law Olmsted, 1850s"
I just bought that book last Sunday, waiting for my wife to give it to me for Christmas.
Anyone read it yet?
The reviewer cites the famous Ara Hovnanian quip, in which the methods used by contractors are largely "200 years of tradition unhampered by progress."
He is in Ara
CaliforniaRemodelingContractor.com
I wonder if the author has read this:
http://www.amazon.com/Why-Buildings-Fall-Down-Structures/dp/039331152X/ref=pd_bbs_2?ie=UTF8&s=books&qid=1197690654&sr=1-2