Integrated Management Checklist for Builders [Part 2]

If demand falls, builders that have very tight cash flow, a large land inventory, and poor management systems will fail. Here are six management practices you can put in place right away to help your construction or trade company succeed.

1. A Typical Job-Cost Sequence

  • When completed, release to construction
  • Checklist of items required
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2. Packages for the start of construction

  • A set price for each plan
  • Minimum of two-three bidders per category
  • A sufficient trade base for volume
  • No exclusive sourcing
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3. Financial Plans for the Year, Quarter, and Month
  • Follow strict scheduling sequence
  • Create a purchase order for each pay point
  • Pay purchase orders rather than invoices
  • Allows for invoice elimination
  • Aids in cost variance documentation and control
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4. Streamline Processes Across Business
  • Clear job descriptions + checklists
  • Checklist created for most-performed tasks first
  • No payment until scope of work is completed
  • Clear and concise change order process
  • Tracking pre & post job reconciliations
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5. Work scopes for trades and vendors
  • Cost of the job
  • Variance
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6. Customization planned and priced
  • Allow for pre-planning and pre-pricing customization;
  • reduce red-line customization; and
  • eliminate customization after construction begins.