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Supply chain issues, compounded by labor shortages, have forced builders to “improvise, adapt, overcome.” All good, and in recent times, this has been necessary for survival. Throughout the challenging supply chain impacts, many builders have come up with some viable solutions to properly complete homes when roadblocks arise in the critical path. But the question is, has it been done in a manner that adheres to quality standards? Because just “getting it done” in order to get homes closed on time isn’t good enough if it has to be done again later. For starters, don’t make material changes without performing your due diligence on material performance. Just because it’s available when you want it, doesn't mean that it’s the best solution. Next, be sure to communicate changes with your architect, engineer and especially your trades. Do everything possible to ensure that the workers on your job site are well informed of your specific installation standards and any recent changes that you’ve made. As much as we want to have confidence in our trade partners to provide adequately trained installers, it’s crucial that builders keep a close eye on the work. Now more than ever, it is important to watch the quality of workmanship on every home you build. Different builders in different regions do things differently. Never forget that you get what you inspect. You will need to pay now, in terms of time spent doing things right, or you can expect to pay later in doing things over again. There is never a cheaper time to do things right than the first time.

Let’s be honest: It is more than tempting to cut corners in today’s unbelievably hectic environment. In fact, it almost feels like a necessity to deliver homes on time. But the truth is, sacrificing construction quality could be more detrimental to products, business, and reputation than ever before. Now is not the time to cut corners on safety and quality assurance efforts – despite the immense pressure to do so. As one of the most fragmented industries, homebuilding exhibits the lowest productivity growth compared to other industries, and is compounded by affordability challenges and a deepening labor crisis. Amidst this difficult industry landscape sits the very complex structure of a production homebuilder’s operations. So many facets of a builder’s organization – including suppliers and trades – must collaborate and communicate effectively. Throughout the process, there is a cycle of countless interactions – all fraught with the risk of miscommunication and human error. And when mistakes occur in a production builder’s environment, they will naturally be repeated until they are addressed… over and over, multiplying exponentially throughout communities, divisions, regions, and possibly across the builder’s entire footprint. Mistakes during construction – even if they are caught and corrected – can increase build cycle time which increases the cost of carry. Additionally, too many mistakes that are visible to the customer will negatively impact overall satisfaction; not to mention the cost of litigation if things go that far. Research has shown that the hidden costs of poor quality can equal or exceed the tangible costs that a builder often accounts for. Bottom line – despite the pressure to cut corners, you will likely never save enough in doing so to fully offset the price you’ll have to pay as a result down the road. Simply put, it pays to invest in quality and to do it right the first time.

It is undeniable that innovation in other industries is rampant. WHERE is “better, faster and more efficient” in the homebuilding industry? Where is the disruption? Where are the new products, new processes and new ways of thinking? Let’s be honest: We are still using materials and employing practices that were developed in the 1930’s. As a matter of fact, we are still exploring “innovations” that spawned two generations ago. From shingles and stucco, to wall board and insulation, not a lot has changed. Sure, there have been some advances thanks to technology and connectivity, but we are still ruminating on energy efficiency and savings today in much the same manner as we did 90 years ago. Why is the homebuilding industry so slow to adopt and therefore so far behind the pace of innovation in today’s world?  Presumably, the home is the largest, most expensive product in our lives. A staggering percentage of the population has one, and it plays a significant, active role in the daily lives of billions of people – in other words, we touch and use our homes every day. So why then, with such a “hot commodity” do we not innovate more rapidly? We need to speed up innovation in our industry to find and adopt new, innovative building products and practices. We must approach it in a whole-systems thinking manner, as everything we do is intertwined and interconnected. So, let’s challenge ourselves and challenge one another to move our industry forward more rapidly. There IS a better way to do things – but we need to work together to get there.

Builders are understandably cautious when it comes to anything that alters the spec list, requires a new supplier or installer, or might lead to warranty work and a bruised reputation. Innovation and change might be scary and risky, but they are also inherently ripe with opportunity. Those who have the vision to see beyond the horizon and have the conviction and confidence to bring real innovation to the homebuilding industry will own tomorrow’s world. Would it take the edge off if we told you that you didn’t have to innovate everything at once? A measured approach to using an alternative construction product, material or system certainly doesn’t eliminate risk, but done right, even in small doses, it can solve real problems, deliver better performance, improve homeowner satisfaction, and maybe even lower costs. As you look for alternative construction materials or methods, run them through this filter first: Does it solve a problem we’re actually experiencing, either on site or after occupancy? Do I understand it? Does my site super, lead carpenter, warranty service manager and sales manager understand it? Does the material allow for better performance as well as lend itself to easier design or installation? Is it, or will it be, readily available locally from a reputable source? Are there local people trained (ideally certified) to install it and/or is training offered? Does the economics make sense for the homebuilder and ultimately the homeowner… to the point of influencing their buying decision? Then look for ways to road-test it before you integrate it into your regular practices and systems. Maybe a model home or an in-house mock-up. Spend some time to evaluate an alternative material or method in a real-world context. And you don’t have to go it alone, either in learning curve or cost. Get the manufacturer and local supplier to share the expense, or even front it for you. If it’s that good, they should put some skin in the game… and also want to learn from it. The ultimate goal is to get your crews and managers familiar and proficient, allow time to gather and hone actual costs, and – not to be neglected – get your sales story straight. I mean, if you’re going to go to the effort to innovate, you’d better be able to sell it to a homebuyer and reap the value.

If you’re using the word “green” to describe your commitment to high-performance, energy-efficient or otherwise “sustainable” building practices, the homes you sell, or your company, please stop now. Green is a color, not a commitment. It doesn’t describe the value of your efforts to build better housing and the resulting benefits it brings to your homeowners. Not even close. Let’s try to be more specific from now on. If your homes reduce energy use and costs, then say so … and by how much. If they save water, use certified sustainable timber, or help reduce greenhouse gas emissions from coal-fired electricity plants – ideally certified by a reputable third party – then shout it out. Better yet, could homes "give back?" We believe so. We see a future where homes respond to the changing needs of the consumer, the builder, and the environment. We are on the road to get there, and we believe we will see it on our lifetime. Our vision for 'Homes That Give Back' is one that ensures that homes are safe, healthy, durable, comfortable, efficient, responsible, connected, and affordable. It's a tall order to get there, but every step that the industry takes is a step in the right direction. And with these steps comes data... make that data resonate with homebuyers. Use it to help them compare builders objectively and push you (and the industry overall) to do better and remain competitive, relevant, and effective. You might even gain their trust. The key is to approach your commitment to better-built, higher-performing housing strategically and holistically. Focus on what your buyers want in terms of lifestyle and figure out how to deliver it through better, more integrated design and more consistent building practices. Turn your data and product specs into easily understandable benefits. Make it real, relatable, and quantifyable. Put yourself in their seat and think “what would sell me?”   The answer is probably not generic "green" terminology.

In our work with many of the top U.S. production builders, we have found that the ones with the fewest callbacks and the happiest customers have the following three things in common: 1.) They create standard specifications with clearly-defined performance language. 2.) They educate installers on the details of these quality expectations. 3.) They have systems in place to make sure that those expectations are met. We recommend that builders create easy-to-understand checklists and illustrations for critical processes. These take work to create. You will need to consult code requirements, industry standards and professional organizations. You will also need to include your project managers, purchasing agents and subcontractors in the discussions, and if you build in different communities and market areas, you will want to get input from key people in each of them. Although a typical home might benefit from 20 or more such checklists, there's no need to create them at once. Instead, start with the two or three assemblies that have been causing the most callbacks. While these details show installers the key requirements for each assembly, the specs also need to tell them what products to use. If you don't want to limit your crews to one product, you can create approved lists from which they have to choose. Standard specifications with clearly-defined performance language are a great investment with measurable payoffs, but the specifications must be maintained over time by ensuring that workers follow them.

It’s budgeting season and the HR Manager is making her case to the CEO. The CEO asks, “But why should we train our people, only to have them leave and go work for our competitors?” To which the HR Manager responds, “But what if we don’t train them and they stay?” For well over a decade, the homebuilding industry has struggled with a decline in skilled labor with trades. But this trend is not exclusive to the trades. Many builders are struggling to find and retain skilled talent, and many have elevated their efforts to grow from within by up-skilling their existing workforce. But how to do you measure the effectiveness of your training efforts? I think most would agree that just confirming someone took the training isn’t enough. Probably also not enough to learn that they were engaged and enjoyed the training. What about knowing that they recall something they learned - is that enough? Should we settle for understanding – they not only learned something, but they understand it? No. Even understanding is not the bar to measure effectiveness of your training efforts. Most often, you train to affect the way your people think, feel or act. You need to measure the effectiveness of your investments by the resulting changes in both behaviors and results. How different are the actions of your people as a result of their training? How aligned are their new actions with your desired results? In the past, measuring these changes was challenging and time consuming. With technology, however, the ability to simulate work scenarios to validate understanding and have the student demonstrate his/her ability to apply the knowledge gained is both compelling and within reach.