Category Archives: Field Scheduling

How home builders find savings by implementing software and deploying integrated and automated services for building tasks.

Our client’s success is our number one priority. Money matters a lot in homebuilding, every dollar counts, and beyond improving your product offering, finding the right land to build on and acquiring resources for the right price – investing in a homebuilding system that’s truly integrated could be the investment to save you money and resources in the long run.

As you will see, our findings show that an average home builder producing 200 homes at an average selling price of $350,000 and approximately 30 employees can profit from integrated management software by improving hours of ineffective process and optimizing the margins of their operations. We have taken a conservative estimate for wages and for all other variables, and this standard is based on decades of industry experience with hundreds of home builders using Constellation software in their business.

Profits during the Building Cycle

Calculating Field Construction and Sales Operations Savings

The industry standard index dictates that the average building firm of 30 employees about 10 percent would be directly involved in the construction process (3 employees), each builder would be compensated an average of 25 dollars. Due to improved data flows between the head office and on-site builders, each builder will save 4 hours per work week since manual paperwork is eliminated. Considering a 50-hour work week. It is estimated Builders can save an average $15,000 per year.

Hours per week saved due to automation = 4 Hours

X

Weeks worked per year excluding weekends = 50 weeks

X

Hourly wage = $25 Dollars

X

How many builder/ superintendents employed = 3 Builders

TOTAL Savings Per Working Year = $15,000

Calculating savings due to Reduced cycle time due to field integrations

More importantly, the amount of savings created from improved communication between builders and trades is around $90,000 dollars per year. A builder invests significant capital in terms of labor for each extra day a home sits on a lot incomplete. With the new and improved scheduling capabilities integrated back into your accounting process, expect a 6-day decrease in your home build cycle which ultimately cuts costs.

Number of homes built yearly = 200 Homes

X

Number of reduced cycle days for builds = 6 Days

X

Estimated cost per day when a home is under construction = $75

TOTAL Savings Per Working Year = $90,000

For more on NEWSTAR’s Scheduling benefits with on-location scheduling, see how DSLD Homes accomplishes a 43-day building cycle on each home, try “5 Keys to Effective Trade Management”

Calculating improved margins from field integration/scheduling

The biggest return on investment procured from the construction process will come from integrating your field operations with your schedules. Considering the 200 homes built annually by our sample builder with a 2% savings in upgrade costs averaging to about $ 35,000 per home closed – a building company can find new revenue of $ 140,000 simply by paying attention to the productivity of model upgrades and ensuring that the product upgrade process fits perfectly within your existing construction and trade management process.

Average upgrade revenue (option dollars) per closing = $35,000 Dollars

X

Improved options margins with field integration/scheduling = 4%

X

Number of employees = 30 employees

TOTAL Savings Per Working Year = $140,000

Savings Generated from Minimizing Back Office Manual Work

Calculating Home Closing Entry

Builders/superintendents are each spending 4 hours weekly processing POs. Within a company of 30 people, 1 person works full time administrating work orders and 1 person also helps on a part-time basis. At the end of the year, having a manual process is costing you roughly $ 7,500. As an integrated technology provider for home builders, our concern is the build process. An inconsistent process will also incur the builder running costs from building errors.

Hours spent weekly per builder Processing invoices/work order/PO’s = 4 Hours

X

Working weeks = 50 Weeks

X

employees are allocated to Invoice/PO/Work Order Processing = 1.5 Employees

X

Hourly wage = $25 Dollars

TOTAL Savings Per Working Year = $7,500

Calculating Hidden Costs, controlling committed cost

Industry hidden costs accumulate over the year from work order processes lacking accuracy in capturing billable and back charge items, keeping consistent to contracted pricing, consistency with buyer selections, and timely ordering and delivery of resources. With integrated software from warranty, to sales, keeping a steady schedule all the way to accounting. Our prospect builder will save $ 87,500 per year while creating an impactful home buying experience to earn them future referrals.

Average base home sales price = $350,000 Dollars

X

Industry % – Hidden Costs, controlling committed cost = 25%

X

Number of homes built yearly = 200 Homes

X

Conservative adjustment = 50 %

TOTAL Savings Per Working Year = $ 87,500

Revenue Generated from Improved Process for Interior Decor Upgrades  

Design center appointments are the new expectation when buying a new home. The secret to increased revenue for interior upgrades is to offer your homeowners enough customization to please them without sacrificing your automated process. For example, our customers are finding improved appointment productivity with our new product, Design Studio Manager. With a standardized décor center selections process that promotes relevant products to your homeowners, it is estimated that a NEWSTAR user with a Design Studio Manager integration is earning $15,250 dollars yearly (seems low; overall per year or per house per year? Or per week?). $5,250 dollars in earned revenue from having a software system that promotes your upgrade products logically. While the remaining $10,000 is saved money calculated by the manual process your décor agents would have spent selecting products for your homeowners manually.

Calculating Design Studio Revenue Savings

Time savings from integrated design software = 1 Hour weekly

X

Number of homes built yearly = 200 Homes

X

Hourly wage of a designer = $50 Hourly

+

Upgrade revenue per closing = $ 35,000

X

Percentage increase for optional upgrades = 15%

TOTAL Savings Per Working Year = $ 10,000 + $5,250 = $15,250

 

Savings While Providing Homeowner Care and a Simple Buying Experience

Closer to home sale, builders on average are spending 2 hours with each new homeowner drafting contracts / coming to a sale agreement and 1.5 hours entering home close information. Over the course of a year – the prospect builder would have invested $17,500 for a task that otherwise could be automated. With NEWSTAR, expect sales selections to update in the accounting main module for the real-time budgets analysis and current financial terms. Also, home walkthroughs can be completed on-site with NEWSTAR’s on-location warranty module that directly integrates with the scheduling and accounting departments in case of late-extras or any final adjustments for the fastest reaction time possible.

Calculating Warranty Process Savings

Homebuyer Agreements – Hours spent per home = 2 Hours

X

Number of homes built yearly = 200 Homes

X

Hourly wage = $25 Dollars

+

Hours eliminated from automated home closing entry = 1.5 Hours

X

Number of homes built yearly = 200 Homes

X

Hourly wage = $25 Dollars

TOTAL Savings Per Working Year = $10,000 + $7,500 = $17,500


The Verdict

After examining our clients and their financial performance before and after their NEWSTAR implementation. A home builder producing 200 homes yearly will save $363,625. Over the long term, the return on investment for implementing an integrated software solution comes to $1,818,125 in just 5 years. We acknowledge that all homebuilders are different and operate under many different variables. With the help of industry experts, we have created an ROI calculator to help you customize your potential revenue that is possible with software implementation. Calculate Your Savings today.

Posted in Best Practices, Blog, Field Scheduling, NEWSTAR, Uncategorized | Leave a comment

Eight years ago, Constellation’s team of developers completed the first version of a mobile scheduling application called OnLocation-Schedule, allowing homebuilders to access and control their company-wide schedules and tasks while on the job site. All of a sudden, builders could view and change the build schedule from their Blackberry, from anywhere. We applied for a patent on this mobile scheduling technology, and we have finally been awarded that patent!

We would like to congratulate Sorin Lungu, who led the development team on this project. Sorin’s patent illustrates our dedication to builder efficiency, maximizing your effectiveness whether you sit at your desk or supervise worksites.

Increasing productivity by scheduling on handheld devices has continued to evolve at Constellation, and we are very proud to be leading the homebuilding software industry. Location-based scheduling is just the beginning! Our development team works tirelessly every day to improve the way that you use technology from website to warranty.

Constellation HomeBuilder Systems is the leading provider of software solutions for the residential construction industry in North America.

We build software that helps you build homes.

 

Posted in Awards, Constellation News, Field Scheduling, News, NEWSTAR, OnLocation | Tagged , , , | Comments Off

We have a great virtual customer conference planned for May 10-14th.  This is our largest virtual customer conference ever with over 30 sessions, guest speakers, industry experts, Constellation staff and many opportunities for builders to learn from their peers.

We’ll cover many recent enhancements in our home building software solutions and offer product training sessions as well.  For a detailed agenda and registration information, please click on the link below.

Register Now

Posted in Best Practices, Builder 360, BuildSERV, BuildSoft, Constellation CRM, Customer Service, Events, FAST, Field Scheduling, Harmonized Sales Tax, HST, Important Event, Mobile Device Software, New Home Sales, NEWSTAR, Online Resources, OnLocation, User Conference, Warranty | Comments Off

Constellation HomeBuilder Systems would like to welcome all builders and remodelers to the 2010 International Builders’ Show in Las Vegas.

We have an exciting show planned with many experts available to answer your questions about our products, recent acquisitions, and real-world best practices. To register for these sessions, please click on the session name in the schedule below.

Over the past year, we have seen huge changes in our industry and technology in general. While many builders were focused on their business and making many tough decisions, we were focused on providing world-class customer service, enhancing our products, and developing or acquiring new technologies to meet the needs of the changing home builder, home buyer, and home owner.

To meet these demands, we have released major enhancements to our core production, accounting and sales solutions, completed two significant acquisitions, developed two new products, and offer many of our products in hosted configurations. Our track record with new acquisitions demonstrates Constellation’s commitment to customers with world-class service and ongoing product support and enhancements. This means that home builders can rely on Constellation for stable products, dedication to the industry, and proven expertise. With more than 100 employees focused on homebuilding software, and over 2,400 customers we are the largest software company in the industry with the resources to deliver mission-critical solutions for home builders of all sizes.

With several booths at the show this year, please be sure to stop by to share some stories, or just ask our experts a few questions. We would like to learn more about your business and offer our assistance in any way we can.

See you in Vegas.

Constellation Booth Schedule

 Booth #C1145Booth #C842
TuesdayJanuary 19th  

11 AM
Field Scheduling and Vendor Portals

1 PM
HomeBuilder Website Best Practices

3 PM
Production Builder Accounting and Estimating

11 AM
HomeBuilder Website Best Practices

1 PM
Bid Management and Purchasing

3 PM
Small Builder Accounting and Estimating

   
WednesdayJanuary 20th  

11 AM
Lead Management Best Practices with Mike Lyon

1 PM
Warranty and Home Owner Service

3 PM
Production Builder Accounting and Estimating

11 AM
HomeBuilder Website Best Practices

1 PM
Lead Management Best Practices

   
ThursdayJanuary 21st  

11 AM
Lead Management Best Practices

1 PM
New Home Sales and CRM

3 PM
Production Builder Accounting and Estimating

11 AM
Warranty and Home Owner Service

1 PM
HomeBuilder Website Best Practices

3 PM
Small Builder Accounting and Estimating

   
FridayJanuary 22nd  

11 AM
Field Scheduling and Vendor Portals

1 PM
HomeBuilder Website Best Practices

11 AM
Warranty and Home Owner Service

1 PM
Small Builder Accounting and Estimating

*if you are unable to attend any of the scheduled events, please contact
sales@constellationhb.com.

Posted in Builder 360, BuildSERV, BuildSoft, Constellation CRM, Constellation News, Constellation Web Solutions, Events, FAST, Field Scheduling, Home Ownership Guides, HomePlate, Important Event, Mobile Device Software, New Home Sales, NEWSTAR, Trade Show, Virtual Showroom, Warranty | Comments Off

We had another great day at PCBC 2009 and some very savvy builders visited our booth. Some were looking for home building software, some were starting new businesses, and some were frustrated with their current software partners.

An existing customer that has been using one of our systems for a long time was blown away with how much more they could be doing with our software.  They could be using scheduling better, they could be following up with leads quicker, they could be providing all their warranty materials online, they could be tracking supplier quality better, and they could be using more of our built-in reports.

As a software partner, I feel that we have let them down. They should know that we have been working hard to improve our products and provide them with tools to make them more effective and efficient.  I encourage any builder with a slight interest in wanting to do more with technology to run their business to give us a call.

I’m looking forward to Seth Godin‘s talk on Friday.  Should be fun.

Posted in Best Practices, BuildSERV, Constellation CRM, Events, Field Scheduling, FOCUS, Home Ownership Guides, HomePlate, New Home Sales, OnLocation, Trade Show | Tagged | Comments Off