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**Read this post before beginning your search for homebuilder management software!**

Homebuilder Management Software is a tool designed to improve productivity, enhance efficiencies, and streamline operations for a residential construction company. Selecting this software is a decision that will impact your business for years to come.

Before reaching out to software vendors, it is important to establish your goals and requirements. The following steps are designed to help home building companies identify which software is best for managing their business and which technology partner can support their goals and company structure.

For the full e-guide, try reading “A Step-By-Step Guide to Selecting HomeBuilder Management Software”. 

Step 1: Establish Goals and a timeline

By establishing what your company is currently lacking in terms of process and what your company already does successfully, decide on an overall goal. That goal may include increasing revenue and profitability, improving communication between the office and the construction site, enhancing accessibility during project management, increasing employee productivity or even increasing customer satisfaction. The timeline should be your company’s second step. Highlight key moments in this timeline including the research phase, the software provider review phase, when a final selection is needed, and when the implementation process needs to conclude. This will ultimately guide the software provider in seeing which integrated solution is best for your company, and what is the best possible method to implement the software to fit the structure and goals of your company.

Step 2: Determine Software Requirements

Selecting a Homebuilder Management Software system requires careful thought and consideration. All companies are different, and therefore requirements will be unique. First, document your company’s processes and identify unique systems as well as strengths and weaknesses. Then determine how technology can address these processes. Try to identify these requirements across all your core business functions including land development, purchasing, sales, accounting, construction and warranty departments. Beyond that also think big, how many homes did you produce this year versus how many do you hope to accomplish the next? Does this system function for single or multifamily communities? By determining what the requirements for your business will be, you can effectively mitigate risk and ensure all avenues are considered before proceeding with your software purchase.

Step 3: Explore Software Vendors

Once goals, timelines, and requirements have been established, the next step is to research and evaluate Homebuilder Management Software vendors. When selecting a vendor, there a few checklist items you must consider:

  • Ask questions relating to your business’ specific processes to ensure it meets your needs
  • Ask for a demo to get accustomed to the feel of the software
  • Determine if the software meets your technology needs, such as whether they offer a cloud or hosted solution or require an on-premise server
  • Read software reviews with a focus on usability, functionality, quality, and support
  • Keep in mind the five keys to consider during the software purchase process to avoid looking only at features and functionalities

Take the time to truly get to know the vendors available and the market. Look beyond the software to determine what each vendor is about. Consider building relationships with your final options, after all, selecting an integrated home builder management solution is essentially a company partnership.

Step 4: Learn about New Software

To ensure a vendor can help your business succeed, ask to read their case studies, watch product videos, and speak with customers currently using the Homebuilder Management Software. Ask the vendor for as many case studies, videos, and references as possible that relate to your specific business or industry. With the vendor’s references, you need to ask the hard-hitting questions. Regardless if you feel the answer may be negative. All aspects of a software system and a technology partner will influence the trajectory of your company. Ask about the overall implementation process, was training provided by the partner? Why did they choose this vendor? And what are the overall benefits to their system in comparison to others? By asking these questions of the reference, you should be able to gauge how the vendor performs, as well as the results you should expect by implementing the Homebuilder Management Software.

Step 5: Choose A Solution and Get Started

Once you have selected a vendor and are confident they can meet the needs of your business, you are ready to start the implementation process and begin your partnership with the vendor of choice. The ideal implementation process should begin with a kick-off meeting where the vendor will gain a better understanding of your business’ needs, determine the launch date and discuss best practices during this phase. Again, a great software provider will look at your current business processes, identify what is currently working then identify areas of deficiencies against the industry standard. Training services are also a must from a software provider, digital literacy skills must not be taken for granted especially for a specialized solution that is specific to home building management. Before launch, see if your software vendor can set up work scenarios to self-train your employees before real life building tasks occur. With a gradual buildup of the software solution and slowly easing into end-user adoption, you will surely succeed with your software selection.

The Verdict:

The software selection process for homebuilders is a great time to solidify your company’s trajectory. Choose a strategy, establish a timeline that fits your all your system requirements for your core business, explore your vendor options and their software, then finally, commit to your system with a trusted partner.

As a full suite software provider for home builders, contact us for a business review, you can also read the full software selections guide. If you are unsure if enterprise resource management software is a worthy investment, find out how much other builders are saving in terms of time and resources.

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This year’s conference in Nashville will be Constellation HomeBuilder System’s biggest turn out to date! What’s different about our 2018 conference is our session diversity. In previous years, our conference has mainly been for training customers on our software. This year, we have gathered the best industry experts to speak about the latest building trends, market data, and the future of homebuilding. We are introducing a new Builder University sessions track, which will be presented by top builders to share best practices. We are also bringing the largest customer care & professional services team to date! Drop by our tech lab for any software questions you might have.  Also, make sure to join user groups led by our software specialists to impact the development of your software solutions.

NEW Builder University Sessions Presented by Top Builders & Experts

Our highly anticipated university sessions include DSLD Homes as an event to surely attend. DSLD Homes is famous for mastery of even-flow scheduling of their construction team and their trades. Learn from an industry leader how they bring a home to market in just 43 days! Another anticipated session presented by our sponsor Meyers Research will discuss national housing market statistics in hot markets and what it means to a builder’s strategy. You can also drop by our Builder Roundtable on “What Customer Experience Means to You”, where we discuss the importance in the Customer journey for homeowners during the sales cycle. We are also including home builder university sessions exploring future developments that include predictive homebuilding powered by artificial intelligence and the trend of perfricated housing and what it means to the overall process of homebuilding. University sessions are perfect for gaining best-practices in building and learning about future trends in your industry.

More User Groups

At Constellation HomeBuilder Systems, we develop our software with functionalities our builders demand. Attending your software user groups ensures you are part of the discussion on how we can best serve you to build more homes. The user groups are also the best time for us to reveal our 2019 product roadmap! Ensure your voice is being heard by telling us key performance areas you wish enhanced. After all, you are an expert in building and we want to learn from you as well! We added more user groups this year. Make sure to arrive promptly on October 3rd. User groups for NEWSTAR, FAST, BuildTopia, LandDev, and Design Studio Manager will be held live at 4 PM immediately followed by our cocktail reception in the main ballroom!

ROAD TRIP to a Signature Homes Design Studio

Wednesday, October 3 @ 1:00pm

We are currently offering builders interested in improving their design center operations the chance to hit the road with us and see the Signature Homes Design Center in Nashville. Signature Homes has kindly opened their doors to other builders to learn about the best practices for design studio management that improve appointment workflows and increase your product margins. Here are three main reasons to join this tour:

  1. Learn how production builders are improving décor appointments with homeowners to elevate brand and improve upgrades sales
  2. See how Design Studio Manager software works in real life!
  3. Experience Virtual Reality technology and how it is impacting the interior selections process

Improved Tech Lab for All Your Software Questions- Drop by, Anytime!

Our Customer Care & Professionals Services team are excited to meet you! Our tech lab is back better than ever, from setting up sales campaigns to creating on-demand reports, our experts have you covered. Visit our tech lab to meet one-on-one to have your software questions answered. Our professional services team will also be present to take on any product enhancement requests. Our tech lab is a great way to get hands-on support from our customer care team, so you can walk away with key tips from our experts on how to maximize your software value.

Exciting Sessions for Every Builder

Our marketing team has been hard at work the past few months securing the right speakers and builders to join us to bring you sessions that will truly impact your business towards success. Whether you are attending the user groups to see how you can influence your software or interested in the general education sessions from our builders, we are sure you will find something useful to implement in your business after your Nashville trip that will positively impact your company bottom line. Join us with +300 home builders from across North America. Register Today.

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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.

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Build the rhythm of the future in Nashville, Tennessee at the largest software conference for home builders. Join builders from across the USA & Canada for education, networking, and interactive seminars.

The home building industry’s software event of the year! The Build Smarter 2018 Conference takes place in Nashville, Tennessee from October 3 – 5. The Constellation Team has expanded the learning curriculum with new education sessions, added new keynotes and panel discussions, and is expecting the biggest turnout to date. Here are the top 5 reasons to register.

Join +300 Prominent Builders

Constellation HomeBuilder System’s provides mission-critical software to 75 of the top 200 homebuilders from North America. Expect 300+ builders from various markets, all with unique product offerings, building processes and technologies. What is bringing all these companies together is their profound desire for innovation in building techniques. Our clients understand business growth comes from the necessity to innovate and automate. The Build Smarter 2018 Conference is the right event for builders of all sizes seeking to grow, enhance their organizational practices and to educate their team members. It is also a great way to see how your peers are leveraging Constellation software.

New Homebuilder University Track

New to this year’s conference agenda is our Home Builder University Sessions. We have partnered with leading homebuilders and market experts to bring you educational sessions. For example, you can join DSLD Homes to learn how a tight schedule allows them to build a home in 43 days.

For scheduling advice, and an overview on the DSLD Homes Builder University Session, also try “ 5 Keys to Effective Trade Management” by Ali Hallak, Marketing Associate.

Our keynote speaker Tim Sullivan from Meyers research will also be leading a Builder University session. Tim brings more than 33 years of experience in analyzing and valuing real estate development opportunities across the United States. Bringing an empirical perspective to our Builder University track, Sullivan will present on local trends and statistics for four hot markets and will lead roundtable discussions on strategic implications of these market forces. These are but a few of the many newly added sessions to provide you with deep insight and innovative ideas.

Accelerate Your Career with Software Training

According to a popular study conducted by the National Association of Home Builders, NAHB found that 88% of public and private homebuilders implement software solutions for internal management and 80% leverage technology for project management and staff communication. These results are not surprising to us, we are consistently supporting many homebuilders with these same solutions while ensuring their systems are truly integrated. Our conference will have 60+ software training sessions. As the largest leading systems provider for home builders – software training at our conference goes a long way in developing your role at your building firm and beyond in the industry.

Revamped Tech Lab

Drop in at any time to ask “HOW TO…” in YOUR system. Our team can load your data and work through your questions directly. Our experts will fill in any software knowledge gaps on the spot. Discuss new projects and work through new ideas in YOUR system together with the software experts. Our solutions are developed by the recommendations and hands-on feedback from our clients – and we appreciate the opportunity to listen!

Nashville, the City of Music

Come for the education, stay for the nightly entertainment. Join us for great food, nightly outings, and see where these memorable nights can lead you. Our team is hard at work to reserve for you the best venues to socialize and kickback. It’s music city, you can bet we have something fun planned with dancing and live music. Perhaps we can all go to Blake Shelton’s new place, Ole Red, there will be many options to choose from and you don’t want to miss out. Also, possibly consider staying the weekend in Nashville by bringing your loved ones with a few of our guest passes. If late nights are not for you, then consider touring the history-rich city of Nashville from their guided tours, we recommend you stop by the Cheekwood Estate and Garden for a breathtaking view and a great history lesson, maybe even visit the Country Music Hall of Fame and Museum for the real musical experience of Nashville.

The Verdict

There are many reasons to come to our Build Smarter 2018 Conference in Nashville this year. Having a hard time convincing your management? Share this article! There is educational and training content for every building department to learn something new. Bring your new knowledge back and share with your whole team.

Remember: Every dollar spent on conference registration fees is a dollar that can be applied to future software purchases. Click here for details.

Join us at the Build Smarter 2018 Conference

When: October 3 – 5

Where: JW Marriott Nashville | 201 8th Avenue South, Nashville, Tennessee 37203 USA

For agenda & registration: Click Here

Sources

“Builders’ and Remodelers’ Use of Information Technology” By Paul Emrath, Ph.D. Economics and Housing Policy | NAHB.org

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Designed from the ground up, industry leading education. Innovative products. Inspirational ideas.

Home building meets innovation – what’s available at PCBC 2018 and how it impacts YOU.

The 2018 PCBC tradeshow is just around the corner! This building show has so much to offer and Constellation HomeBuilder Systems is excited to be an exhibitor at the show. We look forward to seeing how the building industry has grown. From project management to artificial intelligence, we are in the market to support home builders and developers to help them build smarter.

Here are some important things to consider during your time at PCBC:

It’s a Big Event

The nation’s top 350 manufacturers and suppliers in the homebuilding industry will be showcasing their latest innovations. Plus, the show gives you access to 10,000 leading builders, developers, contractors, architects, capital sources and key housing professionals. Even if you are not a purchaser, you can surely meet a few interesting professionals that can spark your next big development.

Home Building Meets Design and Technology

PCBC isn’t your ordinary builder show: it focuses on innovation, design trends, and pushing the industry’s capacity for effective building practices. Important topics of discussion for builders will involve:

Modular Construction – Investing in a growing building technique just in time to meet current market needs and labor shortages. Presented by Bryce Hall, Principal at KEPHART a prominent architectural and design firm. Our team looks forward to this session as many of our software users leveraging our many scheduling features would take an interest. Our customers are always looking to improve scheduling workflows between trades and team members, modular building practices is an important part of that dynamic.

Rising Housing Rates and a Recovery Economy – Rick Palacios JR, Director of John Burns Real Estate Consulting will cover current market dynamics and what they mean for builders and their homeowners.

Attainability – In this seminar, you will hear about the hike in housing prices today due to high demand, steep land costs, and surging material costs. Ron Nestor of WHA Architects will dive in to explore the effects of these issues and how builders are implementing design strategies for cost-effectiveness.

Customer First – This session will be presented by a profound marketing professional in the building industry, Teri Slavik-Tsuyuki. Customers are rejecting the same old established ways of providing homeowner care. Homeowners want a brand experience to go along with their home. This is another great session that our customer experience team will look forward to. Customer experience is a core value within all of our technology solutions. Our software goes beyond simply enhancing the customer experience – we help you use feedback from your customers to improve your overall process.

For more on effective homeowner care strategies post-home sale, try “Reduce Risk of a Cancellation” by Lauren Hughes, Marketing Manager in The Home Building Industry.

Green Building – Construction that limits a builder’s footprint not only makes a positive impact on our environment but can also provide economic benefits. Wes Sullens from the U.S. Green Building Council has the latest news in the sector.

The Verdict

This year, our involvement in the PCBC show is unique. Our team of software specialists and management will be present on-site for any technology-related questions. Whether you are interested in an integrated software solution, are having issues within a specific building function, or simply interested in how we are pioneering the ability for builders to build smarter. You can find us on the show floor, booth 1844.

Visit us at PCBC 2018 – Your Ticket is On Us

When: June 27 – 28

Where: The Moscone Center, San Francisco, CA | BOOTH # 1844

For your complimentary ticket: Click Here

To schedule a building solution consultation: Meet us the Key Buyers Club

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