For most home builders, the direct construction cost of their homes is too high which causes a lack of adequate profitability.  The combination of land (at builder retail price) and direct construction costs should be approximately 70% of the sales price to generate a 10% profit.  Historically, land has represented about 20% of the sales price.  Therefore, the direct construction costs need to be held to about 50%.

Shinn Consulting is committed to helping home builders improve performance and boost profitability. Controlling direct construction costs is critical for two reasons: it is a builder’s largest cost classification, consisting of a lot of small components, and it is a variable cost incurred every time the home is built, so it has a multiplier effect.

For the last six years, Ed Hauck has been working with our builder community to improve their working drawings for more accuracy and efficient material usage and to improve construction techniques.  Ed partnered with Dave Burleigh and Ron Farley of BOQ Virtuosos to assist with developing accurate detailed quantity bill of material estimates.
 
BOQ Virtuosos has joined Shinn Consulting to assist home builders in becoming more profitable by offering a comprehensive menu of estimating services focused on increasing construction efficiency and reducing material waste with the following services:
  • 2D Stick & Bricks Bill of Quantities
  • 2D Flooring Quantities with Cut-Sheets
  • 3D Framing Models with Bill of Quantities and Cut-Sheets
  • 3D Footing and Foundation Models with Bill of Quantities
  • 3D Roof Framing Models with Bill of Quantities and Cut-Sheets
  • Estimate to ERP Integrations
  • Estimator Training
  • Estimating Tools and Templates Creation
  • Waste Reduction Program Implementations
With the ability to integrate with many of the major home builder management systems, the estimates can be structured to be automatically loaded into the purchasing system for pricing, purchase order releasing, direct cost budgeting, and accounts payable, eliminating many manual steps and the potential for errors.

Shinn Consulting is pleased to offer a unique selection of estimating services to home builders through our partnership with BOQ Virtuosos. Contact us at 303-972-7666 or info@shinnconsulting.com for more information.