Wednesday, March 9, 2011

Fired Up In Denver (Part II)


    Here you are at the point of no return.  It's either going to come to blows, you're gonna cave, or he is.  You've hired a contractor to remodel your kitchen.  He told you it was going to cost $50,000 at the time you signed the contract.  Now, you are washing your dishes in the bathtub, microwaving food in your basement, and or eating out for the 51st time, and then, and then.........the bomb drops.  "Yeah, it's gonna be another $25,000 for us to get this wrapped up for you."  "What, how did this happen?" You stand there in shock and awe, half listening, half trembling as your contractor proceeds to tell you that he didn't have this figured, or that wasn't in our scope.  You are stuck, completely at his mercy, you have to bite the bullet, pay the extra money and finish your project.

     So, how can we as consumers keep this from happening?  And how can we as contractors dissolve this stereotype?  Things happen, complications arise, there is no doubt about that, remodeling is a messy business, both figuratively and literally.   With that being said, we feel there is a process that can help prevent scope creep and add-ons from your contractor.

        From a consumer standpoint, one of the best things you can do is research.  Research what you want to do, the products you want to use and research the companies you are interested in doing business with.  This will help you get a feel for what is going to be involved in your particular project.  Secondly, check out your potential contractors.  One of the easiest ways to do this is to see if they are listed in the Better Business Bureau.  If they are, check out their score.  If not, then although they may be a great company, buyer beware. References are another way to investigate how your potential contractor handles customer relations.  However, do you think he is going to give you three names of clients that had projects he messed up, or is he going to give you three names of friends he worked for and knows will give him a glowing review.  References are good, but just remember that they probably are not objective.  Interview your contractor.  Yes, that's right, sit down with them and get to know them a little bit.  Present some scenarios to him and see how he would deal with them.  Let's face it, this person and or company is going to be a big part of your life for the next couple of months, so it makes sense to find out if you're going to get along.  On a side note, if any contractor comes to your house and tells you that you need to sign this contract today, or the price or sale will change, kick them out of your house immediately.  They have no interest in working with you, and if you do business with them, you will either get ripped off or it will end in disaster.

      Now, what can we as a company do to make this process more simple, transparent, and FUN!?  What? Fun?  That's right, remodeling can be an enjoyable process.  Consider a marriage for a moment......Which couple is happier? - the pair that does their own thing, deceives one another, blames other people and doesn't take responsibility....or the couple that communicates, owns up to their own mistakes, and is honest with one another?  It's a no-brainer, right, and I bet they have fun too!  That, in a nutshell, is how we approach our relationships with our clients.  We try to be good listeners, we are transparent with our bookkeeping, and we don't cut corners.  We try to work off of a cost plus percentage, or cost plus fee program.  Change orders are eliminated, communication flows freely, and underlying questions are always brought to the forefront.  One of the additional benefits to working this way is that changing things doesn’t become the mess it usually is.  Remodeling is tough. It's tough to design, execute, and cost out.  So, if we find a better way of building a soffit, or add a design element here or there, but it doesn't affect the progress, it's a win-win for everyone.  You can read further about our open book accounting practices by following the link http://www.jjsteffen.com/open_book_accounting.php 

     What I'm trying to say is that it's all about the relationship.  If your client thinks you're trying to rip them off from day one, then the process probably isn't going to be enjoyable for anyone.  If we all lay our cards on the table and build a relationship, chances are the project will go a lot smoother.  And the next time you're at Walmart and you see your contractor, he won't have to dive into the next aisle to avoid a confrontation.


JJ


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