Special Feature Article


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Do's and Don'ts of Hiring Quality Trade Contractors By Don Carr
Reprinted with permission from Nations Building News.(c) 2005, All Rights Reserved

Today’s home buyers are more than just consumers; they are also savvy employers searching for the right builder. Nothing is as precious to Americans as family and home, and because buying a home is often the most significant purchase many people ever make, home builders owe it to their customers to ensure the delivery of a quality product that meets their expectations.

The quality of a home is strongly determined by the quality of work and reliability of the trade contractors hired for the job. The old adage, "a chain is only as strong as its weakest link," rings true in today’s labor market because the practices of trade contractors can make or break a builder’s business.

Just one poorly performing trade contractor in a builder’s production crew can undermine the integrity of the finished product, opening the door to revenue-threatening delays such as increased cycle time, callbacks and poor customer satisfaction ratings. Worst of all, sub-standard practices by trades can increase the potential for defect litigation.

Recognizing the importance of quality assurance systems within the home building industry, the NAHB Research Center developed the National Housing Quality (NHQ) Program.

With the active participation of industry leaders from across the nation, the program has gained recognition as a leading advocate of, and resource for, quality-related information in residential construction. The following recommendations should serve as a helpful benchmark for builders seeking quality trade contractors to work on a job. Before Hiring a Trade Contractor, Do's:

* Look for a quality certified trade contractor. If a trade contracting company is NHQ-certified, you can be sure that their quality practices have been rigorously verified by the NAHB Research Center, a name you can trust. Adopt a company policy of showing hiring preference for trades who are certified based on their high quality assurance practices.

* Ask for and verify references. Always check a trade company’s references to determine the quality of past performance for other builders. If the company has done high-quality work for people you know, it should do the same for you. Ask those references about the follow-up record of the contractor on customer service and callback issues.

* Find out if the trade contractor is a member of your industry association. A conscientious member of a home builders association should always consider hiring another qualified member first. Doing business with a member is a win-win situation.

* Verify that the trade performs documented inspections. Quality trade contractors should be able to easily demonstrate what quality assurance procedures they have in place. Before hiring, verify that the contractor will perform self inspections to ensure that all work is 100% complete and will continuously strive to improve quality and safety, and limit liability.

* Confirm that the trade contractor keeps complete and accurate records. Keeping written records is a beneficial policy for any company. Well-documented records are invaluable in defending a lawsuit.

* Determine the trade contractor’s capacity to handle the job. Ask trade contractors how many jobs they currently have and what they will do if there is too much work. A quality trade contractor should never take on too many jobs. Spreading crews too thin is an all-too-common reason for inferior quality performance.

* Review the contractor’s documented quality assurance system. Having a documented quality assurance system in place is a sensible business practice that takes some of the additional burden off of the builder and eliminates the need to train the trade contractor’s crews in the field. There should be a management-level commitment from the trade to deliver on the level of quality required by the builder.

When Evaluating a New Trade Contractor, Don’ts:

* Don’t hire a trade contractor that doesn’t seem to understand the business. If the trade contractor doesn’t understand how to do your work, there is no reason to expect quality results.

* Don’t hire someone who is going to be a burden to your superintendent. Your superintendents are already busy, so be sure to hire a trade that will help them solve problems in the field, not one that creates a whole new set of problems.

* Don’t take on contractors who are uncertain of their responsibilities or ill-prepared. Your purchasing department writes a scope of work and provides a set of plans for the house. The trade signs a contract and promises to do certain work. It is the trade’s responsibility to report to the job site prepared with the right tools and equipment to do the job that has been agreed upon.

* Don’t forget that the lowest price isn’t always the best deal. There is a first cost and a total cost for every element of the new home. A trade contractor’s bid may seem like a good bargain at first, but in reality can be much more expensive when you factor in callbacks, delays and warranty calls over the entire course of the job.

Apply these practical "do’s" and "don’ts" to your trade contractor hiring process, and you are well on your way to making quality improvements in your business.

The NHQ Program offers builders, trade contractors and manufacturers across the nation the opportunity to learn more about quality assurance in home building. To learn more about the NHQ Program or for a list of NHQ Certified trade contractors in your area, click here.

Don Carr currently manages the NAHB Research Center’s NHQ Certified Builder Program. Before joining the Research Center, he was the director of technical services at NAHB, and formerly operated his own semi-custom building company. For more information about the NHQ program and improving quality assurance, click here.

 


Nation's Building News Online is produced and distributed by the National Association of Home Builders (c) 2005. Reprinted with permission from Nations Building News.


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