What is your advice on dealing with the client when unforeseen problems pop-up?
Specifically:
What do you do if there are permitting issues?
What happens if problems crop up that require you to spend more time than originally anticipated?
How do you deal with additional costs that may crop up during a project?I’m a home run hitter
When remodeling it is almost a given that some unforeseen issues will arise, it is how these issues are handled that makes or breaks a project.
Being upfront and honest are the two most important ways a contractor can obtain a clients trust. Walking them through step by step what the issues are and perhaps more importantly why the issues are a problem is paramount.
The client will be much more willing to accept any increase in costs or delays in scheduling if they have a good understanding of exactly why the work was required, and why it was unforeseen.
A good analogy I try and use for permitting issues is this. Imagine you had been driving a used car for a year and one day you took it to the mechanic for a small oil leak. Then imagine if the mechanic told you, he can fix the oil leak for a small price but in inspecting the oil leak he discovered the wheel of the car was extremely dangerous and could pose a threat to life if left unfixed. In most instances you would have the wheel fixed. You should explain to the client the same could be said for their house. Whilst contractors are asked to perform specific work on a property they should (if you hire a reputable one) inform you of any issues they find whilst carrying out that work.
Remember the majority of the time these unforeseen issues once fixed not only improve efficiency and value of the property they often help to improve the safety and general quality of living for the people abiding there.This is something that should be addressed in your contract to prevent this from affecting you from getting the project done on time and within the budget. See a lawyer to make sure the wording is legal before you submit it to a homeowner. This protects you and your company. I have my contracts written by my lawyer with a general provisions section that says if we encounter any unforseen things or conditions that causes the materials & labor to increase the contractors cost and or time for, performance of any part of the work, the homeowner will negotiate with the contractor an equitable adjustment in the sum, contract time or both.
I hope this helps. I lost my shirt a couple of times before a consultant at a trade show told me what i needed to do to cover myself and unforseen things on the job.
First of all, permitting issues should never be a problem. If you follow protocol, codes and all steps necessary at the building deptartment, all will go smooth. If building codes or city codes do not allow it, you need to get your client involved and find a new plan.
If you need to spend more time then originally planned, there is always a reason . Sit down with your client, go over their budget with them, explain what the issues are and come to a resolution, which may involve a change order.
Same goes with additonal cost - you should allways confront client before proceding with anything that may involve more cost.
Our best bit of advice when these things pop up is to REMAIN CALM. Maintain a cool head, and be succinct when explaining the issues to the client. Be prepared to offer alternate solutions and don’t promise anything you can’t deliver.
The general rule of measure twice and cut once applies to the planning process to. When taking on any project you want to spead the necessary time required to identify all potential problems in the plannng process. It’s been found that by doing this one act alone will eliminate almost 90% of your problems. So you really want to study your projects before hand and deal with problems on paper so you wont have to deal with them onsite.
The construction schedule should start from having building permit on hand to completion date. If permiting cause delays, then the process was not followed, example need for a zooning variance, board of appeals, special permit & historical reviews could take months and not weeks. Ask the building department about the process needed before you commit to any project.
Problems comes in remodeling from unforseen conditions, which require time to solve the problem, design drawings and pricing which becomes change order before work is done, this will cost the contractor extra time and owner extra money. These issues are talked / discussed before hand so all are on the same page. Honesty and being reasonable will go long ways here.
Allways we advice clients / owners to have contingency for such conditions, when a customer refuses this concept, best to walk a way from the project. The other bad side to this, greedy contractors with unreasonable change orders that makes it difficult to finish the project.
Especially with remodeling there are almost always going to be unforeseen issues.
With permitting it really pays to keep on top of local and national code requirements and especially changes to them. Patience and planning are the keys here. As sometimes we are in a hurry to get started on a project, acquiring all needed permits and/or permission prior to can lead to a more profitable and most often hassle free experience
A good rule to remember is " there are no such things as problems , only solutions" When unexpected things occur , remain calm and sit down with your clients and explain the situation and how you will go about getting through it. If there are options and if so what they are .
When non-requested additional costs come up, again sit down with your client and educate them on how you could not have foreseen this unexpected cost. Have a dollar and a timeline solution to address this
Getting a contractor’s license is easy – there is so much more than that. A lot of bad people are out there, and we all get tagged by it.
Take responsibility, and take care of the client’s needs. Be a man of your words!
These should not happen, and in the rare event that they do, the construction agreement and specifications will outline how to address the issues.
Have my client’s best interest at heart, not focusing on a problem itself, but rather finding the best solution.
Expect them, it’s why the client hires us. We excel in critical thinking and problem solving. We employ a diverse range of skilled and experienced craftsmen who have seen just about everything. Solutions are our business.
My advice is just to realize that it is construction and something always happens. We know how to deal with them, and sometimes, everyone just needs to step back and take a deep breathe.
You should anticipate that something will go wrong. It’s construction — not an exact science. You’ll have problems: weather, material shortages, material shipments and logistics, issues in politics, permitting process, and getting street closures. There are so many factors involved that you should anticipate that something will go wrong. You need money and time. Money, from a budget standpoint, meaning you have to make sure you protect the owner. From a time standpoint, it’s all about scheduling and sequence. You’ve got to be realistic and a little conservative in certain spots. Make sure that you give yourself some time and padding on your schedule that allows you to be flexible if that happens. Make sure you have a team that has a flexible mentality and can roll with the punches.
In a very non stressed way because I don’t look at them as curveballs. Its everyday work and part of the job.
What do you do if there are permitting issues?
— This shouldn’t happen… it should be covered during the pre-project discovery… during the bidding process. Our company charges a “proposal fee” to cover some pay-roll expenses related to having our guys do this research, talk with township officials, pull site plans, tax parcels, etc. If there is a problem, we figure it out long before we write the contract for the customer.
What happens if problems crop up that require you to spend more time than originally anticipated?
— Our bids are incredibly accurate… in my 5 years of business with over 150 clients per year, we’ve only had to write major change orders for over 10% of the project on 4 projects. We’ve done this enough to know what to expect.
– If I under-estimate… that’s on me. I eat it. I issue fixed quoted prices on most projects… Now, I lose some bids to contractors who under-bid up front to get the job, and then up-charge “changes” or “problems” later… but its usually the cheap customers who hire ONLY on price, who wind up paying these guys at least what I bid, if not more… I’ve gotten a few phone calls saying, "I should have hired you initially, can you come finish this job?
How do you deal with additional costs that may crop up during a project?
– If the client gave me bad information, then we’ll talk change-order.
– If the client changes the project scope, we talk change-order… a written change to the contract with a new quoted dollar amount…
– If we have a major variable like “we won’t know what we find till we rip the wall down,” then I write in the contract the portion of the project that will be at Time and Materials…
Honesty is the best policy, not all projects go smoothly for one reason or another have patience with one another. If you have chosen the right contractor who is looking out for your interest he will end up doing the right thing by you. work together as a team to make good decisions for the outcome of the project. Our mantra is to never suggest a solution that doesn’t solve a problem so take it very serious when we evaluate problems that need properly thought out solutions
With a big glove! This is to broad a question to get a solid answer.