Maintenance Agreement Software
HVAC maintenance agreements are crucial for driving revenue, with a successful maintenance contract program easily accounting for 50% or more of your HVAC company’s annual revenue. Below, we’ve delved into
HVAC maintenance agreements are crucial for driving revenue, with a successful maintenance contract program easily accounting for 50% or more of your HVAC company’s annual revenue. Below, we’ve delved into
FieldPulse Engage Engage is a fully integrated VOIP phone system to manage your customer interactions, including phone calls, text messaging, voicemail, and more. Engage saves […]
A recent report discussing the costs and scope of subcontractor use within the residential construction industry has provided the public with a glimpse into the complexity of modern home building. Authored by Dr. Paul Emrath of HousingEconomics.com, the report’s most shocking finding is that the median home construction project can expect to see almost two dozen subcontractors involved before completion. Considering that subcontractor costs are critical to builders’ bottom line and are often subject to changes in labor law, the prevalence of subcontractor use is a critical issue for residential construction.
Meet the 22 Subcontractors that Build Your Home
Using subcontractors for construction specialties is the norm, with greater than 95% of contractors opting to subcontract out carpeting, HVAC, electrical wiring, and plumbing.Even the least subcontracted specialties, such as finished carpentry, weren’t handled in-house almost 70% of the time.As most home construction jobs will use many subcontractors, it’s no surprise that subcontractor work is typically 77% of the total home construction cost.
The demand for subcontractors for home construction is high, and increasing. During housing construction booms, subcontractors are in even greater demand, and subcontractors can make up an even greater share of the total cost. Specific specialties such as constructing fireplaces and installing kitchen countertops are being subcontracted out more frequently over time, with nearly 10% more builders opting to subcontract in 2015 than in 1999.However, the demand for subcontractors isn’t just a result of many small builders taking on jobs they don’t have the resources for.Large construction companies are even more likely to use subcontractors than hire specialty contractors in-house. Builders taking on more than 25 new projects per year subcontract out a whopping 87% of the total work required on average. The smallest builders, who start fewer than 5 houses per year, are the least likely to formally use subcontractors, but still end up using them more than half the time.The picture is clear: builders of all sizes rely on subcontractors.The subcontracting culture carries a couple of caveats for home builders and subcontractors alike. Given that builders will have to coordinate with dozens of subcontractors over the course of construction, keeping track of which subcontractor takes care of which specialty and when is critical for smart work assignments and effective accounting.From the perspective of a subcontractor, keeping track of a long list of customers and scheduled jobs is essential. Managing subcontractors and clients effectively will continue to be a critical issue for home builders moving forward.
Meet the team that builds your home