Gable Enterprises specializes in residential construction. We work in the entire metropolitan area in Chicago. Contact us today for details on how we can assist you.
While renovations will lead to some revenue loss, we know how to minimize loss while maintaining goals and sticking to schedules during home restoration services. However, control is hard to maintain when you hire multiple residential construction companies for different aspects of the renovations. Thus, there are several reasons the best decision is to contract a single company such as Gable Enterprises for the entire project.
The Residential Construction Environment
Each builder has to run something like a factory where the flow of products is fairly steady. Translated into builder’s terms this means that the builder needs a ready supply of developed land, a pool of ready and available skilled and semi-skilled laborers, reliable suppliers who provide materials at competitive prices, working capital to cover labor, supply, and living expenses while the homes are under construction, and an approach to marketing his products. The more successful builders are able to keep at least one construction crew busy on a continuous basis. This means that at any given time three to six homes will be under construction. That way the foundation, framing, plumbing, wiring, HVAC, drywalling, cabinet making, trim carpentry, bricklaying, painting, and cleaning crews can simply move from one house to the next.
Financing can also be a serious stumbling block. The housing industry is extremely cyclical. As a result, interest rates fluctuate, but so do lender’s willingness to provide the interim financing a builder needs to stay in business. The ability to be realistic and forecast trends in interest rates and housing demand is a crucial skill if the builder is to avoid being stuck with a growing inventory of completed homes and consequential pressures from the bank.
Some builders gain flexibilty by building custom homes where the margins are greater. In this market, a few days delay, or a few cost overruns do not usually result in the builder taking a loss. Others gain flexibily by using uncommon materials and components. Sometimes these can result in higher costs but produce savings over time for the homeowner as in the case of better than normal installation.
Keys to Success
Successful builders are those who can keep a steady stream of residences under construction. This allows for more predictability in the quality and availability of the needed labor. It also means that discounts can be obtained from suppliers who learn that they can count on a certain volume of business. Similarly, banks and lending institutions enjoy working with builders who are predictable in making their payments. As a result they are more willing to extend credit when it is needed. And successful builders build delays into their plans and schedules. They don’t know if sickness or the weather will cause the delays but for sure something almost always does. Those who do it well also manage the expectations of their custoemrs. setting unrealistic expectations for completion can result in some very unpleasant consequences for buyer and builder alike. Quality is another key to success that should not be overlooked. Those who do it right the first time don’t have to take money out of their profits to make things right. Maybe, in the final analysis, the residential home builder is the great communicator: needing to keep everyone up-to-date on the project status including, workers, sub-contractors, customers, banks, and building inspectors.
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