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118. Construction Material/Labor Shortages And Meeting Deadlines

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The Real Build
Duration: 22:54
His question was: I am a GC like you, but I focus on remodels. I am having a hard time communicating to clients that material/labor shortage is a significant factor on not meeting deadlines. Have you run into this issue? How have you communicated to clients this in a way they understand?
Ive been de
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His question was: I am a GC like you, but I focus on remodels. I am having a hard time communicating to clients that material/labor shortage is a significant factor on not meeting deadlines. Have you run into this issue? How have you communicated to clients this in a way they understand?
Ive been dealing with a lot of the same issues that Antonio has, and I wanted to record an episode about this as many contractors are facing the same problem. Here are my notes from the show.
The main thing ive focused on - is setting the expectation from the start.
Suppose there is something that is going up; you need to make it known from the beginning. The problem a lot of contractors have is they are afraid to lose a job. This causes them not to tell the full extent of what is going on. They are overthinking losing a client so much that they are willing to tell someone what is going on, which will kick them in the ass later.
How can we communicate this better to them -
1. Start with making sure your subcontractors are communicating any price changes to you.
2. Communicate that price change or expected change right away to the client. Don't hesitate.
Stop being afraid of the unknown!
3. Explain in full detail the situation of why that price increase is happening
4. Most people are understanding, but in communicating it to them, be more understanding - don't just say it is what it explains why.
5. If you have a difficult customer see if you can compromise - maybe you have wiggle room somewhere else?
Being honest with every client I meet with from the beginning—telling them what I'm facing and what can happen with cost and delays during the build. I continue to do this through the contract and even permit.
I also check in weekly with them so that there isn't a long gap of no communication while they are waiting.
Communication is critical, and the more you communicate with them, the better. Honesty is a must. So many contractors are not telling people what to expect because they want to get the job. This will lead to a lot of problems later. Be upfront and set expectations.
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