In the past, I have focused many articles on the importance of discipline. Across the organization, discipline is essential for the efficient execution of processes and procedures. Builders who exhibited organizational discipline during the housing recession were much more likely to take advantage of the few opportunities that did arise, such as the tax credits.

Even as the housing market returns and the stresses on the organization may not be as dire, builders still face challenges. There is some room for error, which no builder had during the recession. That doesn't mean, however, that sloppy organizations will prosper, and in the homebuilding industry, mistakes are punished severely. You must stay disciplined to ensure your organization continues to operate the way you had intended. Otherwise, you may notice a slip in policies and procedures and it may become a scramble to complete tasks and meet deadlines as people create workarounds to do it the 'easy way'. Then, ultimately, you will sacrifice your profits. Don't let this happen. Stay disciplined!

One very overt sign of lack of discipline is in maintaining spec inventory and models. Not only can you see it, but your prospects and competitors see it as well. The time has never been better for buyers to purchase a new home. There are serious buyers out there. How do you get these buyers to purchase one of your homes?   

Lumber cost and variances are typically the largest portion of a home's "bricks and sticks" budget and also tend to create the highest variance. I like to take control of the entire process and manage the material list bidding of all the material. I have worked with several builders in the last year and listed below are my typical recommendations. 

• Having a good plan and details are the first steps. In some cases, I have found as much as 10 percent in lumber variances per home
• A "Details Book" is a great way to share with builders and framers the details on how to assemble your homes. The Detail Book should be used company wide. Here is what I typically look for
• Sill plate and anchor bolts, including material selection and locations.
• Joist layout that includes materials to be used in all areas. I joist or conventional lumber should be detailed
• Shop and compare joist materials and joist centers.
• OSB deck and roof layout
• Header details
• Window install process, include flashing detail
• Detail all wall assemblies
• Include shear wall and bracing details and what materials to use
• Roof framing details. Use the plan to show framers where rafter and ceiling joist are intended to be used
• If you are using trusses, include truss plans
• Include bracing details for either system

Residential construction is clearly on the rebound in most of the country. But the market today is much different than it was pre-crisis when consumers bought new homes as fast as builders could build them-even faster in many cases. Today's successful builders use upgrades to differentiate their homes from their competitors' offerings.

"Every single product that goes into a Classic Home we evaluate it to make sure it's a quality product," says Mark Fuerstenberger of Classic Homes in Colorado Springs, Colo. "You walk into the big nationals (builders) and some of those products are not up to par with what we're using."

"We rely on upgrades a lot," adds Brian Stamm, Denver area operations manager for Brookfield Residential, which expects to close 160 starter, move up and luxury homes this year. A popular upgrade for both Brookfield and Classic Homes is a BEAM Central Vacuum System, which has been rated by readers of Builder magazine as the top quality central vacuum system for 11 years in a row.

"We stand behind the product. We like it. It shows well in our design studio and it delivers margin," Fuerstenberger adds.

Higgins Brings Renewed Customer Focus
 

On January 19, 2015, longtime Builders Partnership member Monarch Materials Group, Inc., Adel, Iowa, introduced Dan Higgins as its new company president. Higgins joins Monarch with extensive experience in both concrete construction materials and 

fenestration. His career path leading to his 

leadership role at Monarch includes stints with Conspec Marketing and Manufacturing, Dayton Superior Corporation and Pella Corporation. Higgins also serves as an engineer officer in the U.S. Army Reserves and has led construction operations overseas in support of contingency operations in the global war on terror.

Monarch Materials Group, Inc. is the nation's leading manufacturer of egress basement window systems. Its products are designed to specifically meet the IRC egress codes in all areas of the US. Monarch has the industry's most comprehensive line of quality products for concrete foundation wall applications. It's the only manufacturer in North America with a complete integrated line of windows, bucks, window wells, covers and accessories that meets all the diverse geographical needs and varying constructions practices nationwide. Monarch has an extensive nation-wide distributor network to serve builders.