How to Walk Your Subs Through the Job Site
Design-build firm owner Peter Feinmann tells how builders can work with subcontractors to save time and boost profits
For many years at my company, we thought that making educated guesses on subcontractor pricing was a pretty accurate way to build an estimate bid for a new customer. We figured that after being in business for a number of years, we should be able to guess at the costs our subcontractors would charge us for plumbing, heating, electrical, painting, flooring and roofing to build out a particular plan.
But something happened along the way: We weren’t making as much money as we thought we should for the efforts going into our projects. We also found that we were regularly cleaning up problems that arose while our subcontractors were on the job, and that we had not foreseen these problems before the job started. I began to realize that we might be able to get a better understanding of these conditions if we took the time to walk our subcontractors through the job during the planning phase.
How Our Subcontractors Help Uncover Hidden Costs
As we started walking all of our subcontractors through projects, they began identifying elements that were more complicated than we had initially realized. For example, a plumber might identify that the stack pipe, the main plumbing waste line in the house, was not located where we had originally thought, and that in fact it stood where we had planned to put a window. This would require us to either change the design and move the window, or charge the client more to move the stack pipe. In another instance, the flooring installer told me he wasn’t sure the flooring could handle another sanding.
These issues would have resulted in increased costs, given the labor and time required to address them. They are also exactly the kinds of increases that would be difficult to collect from the client after we’d priced the job. Thanks to our contractor walkthrough, we could build a fixed-price proposal that accounted for these issues.
As we started walking all of our subcontractors through projects, they began identifying elements that were more complicated than we had initially realized. For example, a plumber might identify that the stack pipe, the main plumbing waste line in the house, was not located where we had originally thought, and that in fact it stood where we had planned to put a window. This would require us to either change the design and move the window, or charge the client more to move the stack pipe. In another instance, the flooring installer told me he wasn’t sure the flooring could handle another sanding.
These issues would have resulted in increased costs, given the labor and time required to address them. They are also exactly the kinds of increases that would be difficult to collect from the client after we’d priced the job. Thanks to our contractor walkthrough, we could build a fixed-price proposal that accounted for these issues.
Sometimes Subcontractors Have a Better Idea
I also found that our subcontractors made good recommendations on projects that I had not considered. For example, an electrical contractor might note code upgrades that might be required for the project. The plumber might recommend upgrading some pipes that might not survive construction.
Sometimes our subcontractors’ ideas might be optional to do for a project and in other cases they would be required by local code, but in many instances our subcontractors’ ideas were in the best interest of our clients. Again, thanks to their insights, we could build the proper pricing for the job.
I also found that our subcontractors made good recommendations on projects that I had not considered. For example, an electrical contractor might note code upgrades that might be required for the project. The plumber might recommend upgrading some pipes that might not survive construction.
Sometimes our subcontractors’ ideas might be optional to do for a project and in other cases they would be required by local code, but in many instances our subcontractors’ ideas were in the best interest of our clients. Again, thanks to their insights, we could build the proper pricing for the job.
How to Do a Site Walkthrough With Subcontractors
1. Hold one or two walkthroughs for all subs. In our company, we meet the plumber as well as the heating, electrical, foundation, roofing, painting and flooring subcontractors on-site. We stagger their visits so we are not coordinating with and showing the project to too many trades at the same time. We allow our drywaller and tile installer to price from plans.
2. Bring plans and specifications along. It’s a good idea to bring the plans or a sketch of the project with you to the site walkthrough. In our company we like to complete an initial written specification for each subcontractor outlining the scope of work. We use this as a guideline for this walkthrough to get accurate feedback about the project.
3. Document any changes. Bring a notebook or mobile device to write down notes collected during these visits. Once the walkthrough meeting is completed, be sure to update your written specifications for the job scope with any additional information from the subcontractors.
4. Send the updated specifications to your subcontractors for their final pricing. In our company we also copy these written specifications into our remodeling contract for our clients. This helps avoid confusion regarding what is included in the scope of work.
5. Use accurate pricing from your subs to build your estimate. Once your subs have seen the site, they’ll be better prepared to come up with an accurate estimate for their part of the job. Use their numbers to build your estimate for clients.
1. Hold one or two walkthroughs for all subs. In our company, we meet the plumber as well as the heating, electrical, foundation, roofing, painting and flooring subcontractors on-site. We stagger their visits so we are not coordinating with and showing the project to too many trades at the same time. We allow our drywaller and tile installer to price from plans.
2. Bring plans and specifications along. It’s a good idea to bring the plans or a sketch of the project with you to the site walkthrough. In our company we like to complete an initial written specification for each subcontractor outlining the scope of work. We use this as a guideline for this walkthrough to get accurate feedback about the project.
3. Document any changes. Bring a notebook or mobile device to write down notes collected during these visits. Once the walkthrough meeting is completed, be sure to update your written specifications for the job scope with any additional information from the subcontractors.
4. Send the updated specifications to your subcontractors for their final pricing. In our company we also copy these written specifications into our remodeling contract for our clients. This helps avoid confusion regarding what is included in the scope of work.
5. Use accurate pricing from your subs to build your estimate. Once your subs have seen the site, they’ll be better prepared to come up with an accurate estimate for their part of the job. Use their numbers to build your estimate for clients.
Benefits of Doing a Site Walkthrough
Everyone these days is short on time. We understand that you don’t think you have the time to gather this information before you give your clients a fixed-price remodeling contract. But consider the benefits:
Everyone these days is short on time. We understand that you don’t think you have the time to gather this information before you give your clients a fixed-price remodeling contract. But consider the benefits:
- More informed and productive subcontractors. Your subcontractors won’t show up asking you or your lead carpenter what they’re supposed to do. Instead, they should have the written specifications in hand. It is also more likely they will have the materials they need for your project. Further, it’s also more likely that the subcontractor will be able to complete the work in a shorter amount of time, since he or she knew what to expect and could come prepared to do it.
- More accurate and predictable scheduling. You’ll also be able to more accurately schedule your subcontractors, as their scope of work will be more in line with what they need to do on the job. Instead of the subcontractor coming to the site for a day or two and then leaving because you didn’t accurately predict how long they’d need to be at the job, you can set a realistic schedule for their time on your project. With this change, it’s more likely the project will stay on schedule.
- Greater alignment between your project budget and actual expenses. Your subcontractors won’t be able to change their scope of work, which means your expenses will be more in line with your project budget. And then you won’t have to spend as much time having difficult conversations with your clients about changes in their scope of work. Believe me, it’s a relief to shed some of those conversations, especially when clients often think you should have been able to identify these issues before they signed the remodeling contract. (And the fact is, they’re often right about that.)
- Greater profitability. You should be more profitable because you will not have as many unexpected project twists and turns eating into your profits.
- Happier clients. Homeowners want to know how much remodeling is going to cost, and if you’re able to stay in closer alignment with your initial estimated costs, in the end they’ll be more satisfied.
- More time. Since you won’t be spending excessive time chasing down problems and pricing that you could have headed off with a job-site walkthrough, you may find some of your time returns to you.
I trust you will be able to communicate to the client that your price is thorough and will have fewer surprises for them in the end than a quickly, inaccurately priced estimate. As we all know, fewer surprises in the remodeling process helps make our clients happy.
Peter Feinmann, founder and president of Feinmann Inc., has for over 30 years run an award-winning residential design-build firm that specializes in whole-house renovations, room additions and kitchen and bath remodels. When not creating smart, beautiful spaces, he spends time teaching and mentoring industry professionals, as well as practicing and teaching the power of mindfulness meditation.
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