The Farlow Group Newsletter

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Building Success 101

Q: How can I benefit from the "collective experience" of my contractor's staff?

A: You've heard about combined experience many times, usually in a company's advertising, A company with 5 employees will add together those 5 people's years of experience and refer to the total to describe how many years the group has in the trade. But how does the customer actually access that collective experience?

At the suggestion of our project manager Bill Sellars, here at The Farlow Group we are taking advantage of the combined experience of all our project managers to conduct project reviews at critical stages during the construction. When a critical stage occurs, such as completion of framing prior to inspection by the county inspections department, our project managers meet together at the site and tour the work with the manager of that job. Each person brings their knowledge to the review of that phase of the construction, and also learns about any new products or installation techniques that may be unique to that home. Each member of the team uses their existing knowledge to critique the work, and gains knowledge of any new elements through a demonstrated example. The subject project benefits, as well as all future projects.

Managing Change

This article started out to be about change orders in the construction process. However, another aspect of change occurring in the construction industry is very much in evidence every day in notices we receive from our suppliers. We want to share that information with you, not from an alarm standpoint, but simply to assist you with planning for your home's care and comfort.

Each day we receive notices from suppliers that they are adding or increasing fuel surcharges for deliveries to job sites, and passing on similar costs from their own suppliers. Instead of prices for materials softening with the slower housing market, manufacturing and transportation costs, along with increasing global demand for petroleum and metals, have material prices escalating dramatically. Based on this trend, we would suggest that homeowners with current needs should not delay maintenance or improvements on the speculation that prices may be lower in the future if the economy continues to slow down.

Local government agencies with jurisdiction over permits, and water and sewer services, have also dramatically increased fees.

Another aspect of managing costs that has become more challenging is that we receive less advanced notice, if any, that prices for particular components are due to increase. This level of volatility makes planning purchases to avoid price increases considerably more difficult. It also further underscores the need to make selections in a timely manner, and to choose products from readily available inventories whenever possible.

So far we are not experiencing shortages in materials, but that may occur as well if manufacturers and suppliers tighten inventories to reduce expenditures on raw materials until they are absolutely needed. Weather related interruptions in material supplies are another potential factor that could come into play.

For now, we are lengthening planning time frames and staying in close contact with subs and suppliers regarding anticipated changes. With so many people these days staying closer to home, home remains a worthwhile place to invest our time and money.

Warm regards,

Jim Farlow
The Farlow Group, Inc.
1908 Eastwood Road Suite 218
Wilmington, NC 28403-7234

(910) 509-1900 - phone
(910) 509-1982 - fax

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