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What do you do when you have a client who is draining your business as well as your mental resources?
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Jeff Berkowitz, project coordinator at Lawrence Murr Remodeling, Jacksonville, Fla., and his team prefer to convert large change orders into separate jobs. This allows them to use the company's full process to develop the project. The "additional work authorization" offers several benefits.
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A quick primer on the best practice of collecting monies owed.
Getting clients to make design decisions well before building helps to streamline the remodeling process and cut down on change orders and schedule glitches. Now there's a Web-based system to help with this process: RemodelVision.
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Hilliard Contracting, Raleigh, N.C., ran on trust and goodwill until late one Friday afternoon in 2002, the year the company became Big50. Owner Steven Hilliard had just met with a client whose whole-house remodel was about 75% complete. His purpose was to deliver the unfortunate news that their project, which they had hoped to do for $220,000, was on schedule to cost closer to $330,000.
To keep up with change orders and to address client issues, Halsey Platt asked his project managers to meet with clients every two weeks. These meetings address the bigger picture, beyond the day-to-day details covered in weekly meetings.
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I think we all agree that some sales presentations are more effective than others. Many factors account for this difference, but one that is easily overlooked is the language used. Words that have similar meanings or that are often used interchangeably can have very different effects on the listener. The words you use in a presentation can mean the difference between a client's signing your contract or putting the project on hold. Here are some examples of words and phrases that I think you should be careful with.
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Remodeling is by its very nature a contentious process. But there is no magic bullet to protect against run-ins with customers or, worse, with their lawyers. The best protection, many remodelers agree, is as simple as establishing the rules and then making sure everyone follows them.
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Before any work begins, clients sign off on language stipulating that every small change they request will cost them a $75 administrative fee, a flat labor rate of $55 per hour, plus the cost of materials and subcontractors, with a 25% markup on all but the $75 fee.