To combat several challenges like unprecedented labor shortages, inflation, and the fast-changing materials market, custom home builders and remodelers must innovate how they manage projects.
To stay competitive and profitable, savvy builders are increasingly turning to subscription-based software to grow their client base, improve the accuracy of their estimates, and streamline their dealer relationships.
Digital takeoff and estimation tools that capture up-to-date price changes from dealers are essential as builders strive to be among the first to submit a quote or bid that meets the homeowner’s needs and protects their profitability.
Builder Ron Marcella, who runs Marcella Building LLC in Pittsfield, Maine, sees first-hand the benefits of dealer pricing integrated into his project management software.
“Having that price list is everything,” Marcella said. “If I’m working on an estimate in somebody’s driveway, the main reason why I maybe wouldn’t feel confident on an estimate is if I was unsure of material pricing.”
Marcella said he uses software and integrated dealer pricing to generate a solid quote that explains his costs and helps the homeowner understand how material price increases can affect the timing of their decision to go forward on a project.
“I’ve switched my estimates to seven days,” he said. “A quote is good for seven days. If a customer would like to guarantee pricing on the materials, I tend to want to order right up front. As soon as they sign the contract, I want to order the materials and have them delivered, or have it ordered and held in stock, at that price, right then.”
Marcella has much in common with other builders trying to navigate the current inflation period, which is forcing them to raise prices. A recent study conducted by Buildxact and The Farnsworth Group found that 1-in-10 builders pass on all their cost overruns to the customer.
Software makes it easier to make decisions about pricing, labor and any associated markups. More advanced software allows builders to quickly move from estimating and bidding on a project to scheduling and managing the build and even generating final invoices for the homeowner. But Marcella said it’s vital that the software be easy for builders to use.
“Time is the only thing I can’t purchase, and we don’t have time, as it is, already,” he said. “As much as they want to make things easier and better, it’s just something else that’s going to suck time, and they are not sure that it’s something they are going to be good at.”
Marcella said using software to manage his projects gives him an overall view of all his projects and a better sense of how his business is running. Better organization gives builders like Marcella the opportunity for more effective collaboration with dealers and contractors.
“I have so much work, and knowing I have a software tool that I can tweak to make it my own, is an enormous amount of stress relief,” Marcella said.
