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Are Cost Effective Subcontractors Really Cost Effective?

By Ryan Siebert

As a general contractor I find myself often and the dilemma of choosing the best subcontractor and making my clients budget work. Often times when building a custom home we have to make a decision that fits the clients budget, or we do not get the business at all. Today I’d like to discuss the importance Of understanding the types of subcontractors that your general contractor can utilize for your custom Naperville kitchen, bathroom, basement or new home build project.

“Wow, They Are Expensive.”

The top-of-the-line subcontractors know their business hands down. Their systems are flawless, the quality is second to none, the communication is always spot on. Typically these subcontractors come with a full-time administrative assistant who keeps everyone organized. Their field operations reps are top-quality. They tell you how they’re going to install, and do not wait for you to suggest how to get the job accomplished. Sounds great, right?  However, these crews have overhead to pay for.  In other words, these subcontractors are expensive. I’ve been in this business for over 12 years now and I have yet to run across a client who didn’t pay attention to their bottom line for custom home building, regardless of their net worth. I’d love to use high-quality subcontractors for every single one of my traits but unfortunately the numbers don’t always make financial sense.

“How Do They Do It For That Price?” 

Second level of subcontractors is the group that has not quite figured out how to run a business. They have the knowledge, they have the manpower, but they haven’t figured out the organizational structure. This makes their prices competitive, but there is a lack of follow through. Whether it’s systemization or they’re just not quite ready to scale the business up, these subcontractors will be the ones that start off great and cannot complete the job.  This doesn’t affect your bottom line for pricing, however, sticking to a timeline is not going to happen.

Do you want to know the process of building a custom home from start to finish? Click here!

“I Got a Guy.”

The unicorns of the custom homebuilder industry are the ones that are excellent at what they do and have a great price. The quality is top notch. These are rare and as I always tell my project management team when we find them we have to hold onto them and keep them busy. The challenge with these subcontractors, is they are often running a one man band operation. Using them on every project is not possible. Expecting them to know all the details of a complicated project is not going to happen. I often get a high-quality product with a great price, but a lack of order giving. Typically these contractors our order takers. That means myself and often my clients are going to be involved in helping make the decision of exactly what steps need to be taken to get the work done. When it comes to crunching numbers in creating a budget that makes sense these guys are great. However, if you need someone to guide you from start to finish your project I try to avoid bringing these guys on the job site.

Part of my job as your general contractor is to help you understand what is most important to you. Budget, quality, timelines? We do our best to give you all of those things, but often times decisions are made knowing what’s most important to you so we can help make your experience one that you’ll be proud of, and of course refer us for business.

Hey if you’re looking to do a custom product of your own I would love to help you out. Whether it’s a bathroom basement kitchen home addition or a full new construction house we are able to flex and help you with whatever project may be on your to do list. Give me a call or text my cell phone 847-602-7641.

How to Select Interior Trim Packages for Your Custom Home

When he comes to selecting interior trim for your home this simple little task can become very complicated. My custom building and renovation clients in Naperville know all too well what I am talking about. Today I want to give you a few tips on how you can take the bull by the horn and get your trim package selections taken care of and avoid a lot of stress.

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Chicago Developer

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What Does It Take To Dominate Development Projects In Chicago?

Chicago Developer

Marty Paris Founder and President of Sedgwick Development

As the leader of one of Chicago’s top development companies Marty Paris knows his way around the block.  In this episode of Secrets of Homebuilders Marty gives an up close look into being a Chicago Development company and shares what it is like to manage the construction, but have no skin in the game for the development.  Marty discusses how he got started in development of projects and reveals the number of projects that he and his team are currently working on in Chicago.  For those of you looking to start Chicago Development, you may want to listen to what Marty has to say about the current state of the market and his feelings on the future.

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SOH_Episode_11_Return of Carrie McCormick

What does Chicago Real Estate Look Like in 2018?

Carrie McCormick – Real Estate Broker with @Properties

Carrie McCormick returns for part two.  In this episode Pat and Carrie discuss the ways that the stock market rise and confidence in the economy could lead to a booming year in real estate in 2018.  Carrie also discusses how development in neighborhoods not only increase the value of homes, but it also helps create better schools in the area by raising the bar of student and parent involvement.  More development in your neighborhood gives the consumer the opportunity for custom renovations and rehab work to be completed.  From a developer perspective, it is important to know the areas and neighborhoods where there are value plays on the way, and when to hit the stop button as neighborhoods hit their peak in value.  Pat also reveals that Carrie will be joining the Board for the Home Builders Association of Greater Chicago.

 

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SOH_Episode_10_Danielle_Dowell

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Danielle Dowell – Real Estate Broker – Berkshire Hathaway

Danielle Dowell burst into the real estate market and dominated her craft from start to finish.  She learned the real estate business from the ground up and now leads the direction for many developers looking to build the hottest property and attract buyers to the location.  She understands that making money in real estate starts with research and is willing to put in the effort to make a project perfect.  Her and Pat both understand that to make a custom renovation or new construction project work you have to set expectations that are realistic.

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Return of Wallpaper

Why Does Wallpaper Matter? By Ryan Siebert The thing about custom renovations and custom  new construction projects is that they are custom. Follow me for second. I am a systems person. I love putting things together you can replicate. I’m constantly working with my project management team to come up with ways we can replicate our custom construction process […]

master bathroom tips

How To Select Your Plumbing Fixtures For Master Bathroom

How to Select Your Master Bathroom Plumbing Fixtures By Ryan Siebert It is important to be careful with the plumbing fixtures that you choose when making your selections for your master bathroom!