5 Occasions When Builders Should Call ‘BS’

As residential builders, we hear all sorts of interesting claims from people who often don’t possess the expert, up-to-date construction knowledge you have.

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When we interviewed hundreds of builders, they nominated 5 claims they often hear that contain a little more BS than fact. The problem is that unless you correct them, you’re in for a hell ride. So, here’s what to do.

Claim 1: Client Nominates the “Recommended” m2 Rate

If a client ever tells you they know the m2 rate is $X,000, the very first thing you need to do is reset their understanding of how things really work, because:

• M2 rates are total rubbish. In ProCalc’s research, hundreds of builders, architects and designers, have said anywhere between $1,500 and $11,000 per m2; both terrifying numbers for different reasons!
• M2 rates are a danger to you, your client and anyone else involved. Only the uninformed use them (and pay the price later)

• If the client is thinking that way, they’ve likely been researching volume builders and have an expectation that you can deliver in a similar range.

So, the first thing they need from you is a reset through an honest conversation about what custom builds cost. See Clueless Clients and Their Construction Budgets

Claim 2: A Referrer or Architect ‘Tells’ You What the Job is Worth

Some builders we interviewed said occasionally a referrer would ‘suggest’ to the builder what builders would typically quote ‘this type of job at’ a particular price.

Curious, we then took those projects, estimated them and fed them through ProCalc. We established – without exception – the ‘suggested’ pricing from the referrer was TOTALLY misinformed.

Remember, as the builder, YOU are the pricing expert. Own your pricing and try not to be influenced by the comments of others that don’t specialise in pricing residential construction jobs (or use an informed pricing tool)

If you want a second opinion to check your price, checkout industry rates with free trial ProCalc

Claim 3: The Client says: “I’ll Be A Handful”

As builders, every now and then, a client tells you “I’ll be a bit more demanding than your average client”.

In my own experience, and the hundreds of builders we’ve interviewed, when a prospective client says that – they really mean it!

That is, while they understand they might be hard work for a builder, it doesn’t mean they’ll change their behaviour to make your life any easier.

If a prospect says this, depending on your circumstances, you should either take a step back or add a couple of extra hours each week of the project to your costings to cover some of the ‘superior support’ they’ll need from you.

ProCalc accounts for these types of clients to ensure you don’t underquote.

Claim 4: “We’ll Keep Our Selections to Budget”

So, the job specs allow for mid-range fitout, you cost for it in your original ballpark figures for clients and then; they go nuts at Reece, selecting high premium products.

The result is that you have to reset their budget expectations by explaining to them clearly that they’ve smashed their own budget.

Never avoid this conversation as the client needs to ‘own’ their choices before you update your pricing to accommodate their choices.

Many builders, who use ProCalc, do this by producing two reports; one featuring mid-range fitout and another with premium fitout.

This informs the client before selections of the cost impacts of their choices. Free Trial ProCalc

Claim 5: Client Become Destructive, Undermining Their Own Project

Occasionally we all get a client who, for some reason, becomes problematic at every opportunity, rather than constructively progressing their project.

These clients typically struggle to see how their own behaviour can make the whole project more challenging and you finish feeling like the only adult in the room.

Online project management systems and signed acceptable behaviour declarations go a huge way to stopping many of these behaviours. However, when a client really loses it, you have to address it clearly and have an honest conversation about how their behaviour is undermining their project.

This ‘fork in the road’ conversation is essential to ensure you can keep things on track. Without it, you’re in for extra work and a nightmare close out.

You Might Also Like:

• Builders, Get Your Pricing Right Every-time – No More Under-Quoting
• Transform Your Building Business in 43 Mins (webinar)
• How (& Why) to Charge for First Client Meetings
• Take a Free Trial of ProCalc
• Stop All Free Client Meetings – Charge Upfront
• Want more tips like these? Attend the Webinar: Work Smarter, Not Harder