Quality of the Experience

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Quality of the Experience

• Innovating the Condominium Turnover Process

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Innovation in Construction is Being Researched in
Oregon Now!

• OSU research study of 2007 for Charles Pankow
  Foundation defines innovation as the actual use
  of a non-trivial change and improvement in a
  process, product, or system that is novel to the
  institution developing the change
• Hoffman is seeking to be innovative in the manner
  in which we perform Quality Control and turnover
  of our residential construction projects, as well
  as others, for our customers.

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ACIG Risk Mitigation Seminar of 2005 Happy
Buyers Dont Sue You
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Innovative Planning Towards Successful
Condominium Turnovers

• Our Plan Convert this theory (happy customers
  dont sue you) to specific, innovative actions
  and obtain measurable results.
• Gear our plan to not just please the Homeowners
  Association (HOA), but serve the homeowners
  themselves.
• Recognize with the plan that potential conditions
  of exposure are widespread façade, plumbing,
  HVAC, electrical, unit finishes, etc.

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Prototype Approach for The Meriwether at South
Waterfront, Portland, Oregon
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Contractor has no control and limited influence
on which buyers sign up, and the market factors
that will motivate them.
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Recognize the critical factors to a quality condo
buying experience and innovate around these

• Stress level around buying a new home and moving
  is high for most people.
• Unlike most other building types, people will
  live there at all hours of the day.
• Homeowner must be confident in the quality of the
  design and the construction.

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Buyers come with really different expectations
for the Quality of the Experience

• Properly educate buyers on the materials they are
  getting in pro-active ways.
• Use any early opportunity as a means to
  pre-establish trust in the project (hard hat
  tours).
• Participate in the homeowner orientation / buyer
  walk processes if possible.
• Explain when appropriate the process for warranty
  work and clarify how determination of which work
  is warranty will be made.

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Example Cherry wood floor aging
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Our plan to make buyers happy

• Give them a positive Pre-buyer Move-in
  experience
• Take care of them Post-buyer Move-in

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Pre-buyer move-in experience

• Execute the work in accordance with our Quality
  Assurance plan to enable us to honestly confirm
  to the buyers that their home is very soundly
  built.

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Pre-buyer move-in experience

• Buyer Walk-Throughs / Home Orientations
• Performed timely and efficiently with each unit
  ready
• Reaffirm Hoffman-built means added value by
  sharing unique information the realtors havent.
• Keep smiles on, even for the takers.
• Emphasize closing on issues found prior to
  move-in.

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Post Buyer Move-in experience

• Utilize Transition Team to solve buyer problems
  with fast, courteous response.
• Utilize Service Request tracking system for
  homeowner concerns for improved communication

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The Hoffman Buyer Transition Team HBTT

• Approach to conducting the buyers transition to
  homeowner and warranty repairs.
• Paid for upfront.

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Select the right HBTT people

• Customer Service personality versus the typical
  construction engineer.
• Clean appearance and respectful behaviors used at
  all times.
• Trained with basic knowledge of home finishes and
  where to get help.
• Apply 3 rules of customer service per service
  care consultant Bryan Williams Gold versus
  Platinum

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Proper Communication and Follow-through

• Service Request Tracking System online.
• PDA for service responders to activate real time
  communication.
• Involvement of key Subcontractors (mechanical,
  electrical, flooring) as service partners.
  Factor this ability in when selecting these
  subcontractors.
• Goal is at least a satisfied homeowner, if not
  happy (Zidell example).

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Fast, Quality Customer Service

• Customers expect timely response
• Ongoing communication is important
• Measure our own performance

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Tough Customers

• Give the tough customers exactly what is owed to
  them no more, no less.
• Go in prepared with a flak jacket and Nikes.
• Stay within professional bounds use the experts
  when needed (case Meriwether TH heating).
• Les Schwab input from Brian Capp.

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Beneficial Results of post-occupancy Quality
Customer Service

• Active involvement enables warranty item trends
  to be discovered and mitigated more quickly and
  effectively.
• Enables Contractor to proactively insist on
  extended warranties from subcontractors or
  suppliers where ongoing defect issues may be
  occurring.
• Helps force a united front of involvement from
  Developer and Property Manager towards meeting
  post-occupancy expectations of homeowners with
  larger issues that come up.
• Actively apply lessons from one project to the
  next.
• Avoid the Media for quality issues (so far).
• No building defect legal claims to erode profits
  and further supervisory time.
• Keeps our client (the Developer) happy both our
  reputations are on the line.

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Opportunities for Improvement with further
Innovation

• Work to satisfy more folks even earlier in the
  process.
• Achieving zero punchlist at the buyer walks unit
  after unit is innovative now, but quickly
  becoming the standard expectation. We must
  exceed what the buyers have previously
  experienced when moving to a new home.
• Resources at the project engineer level are
  getting more and more limited, so effectively
  applying their time as a team is innovative. Add
  QA/QC people to get better results!
• Use of homeowner follow-up surveys (1-month, 6
  month, 1 year post-closing) being implemented by
  developer to gather detailed feedback on our
  performance.
• HOW TO APPLY THE QUALITY OF THE EXPERIENCE
  LESSONS WE ARE LEARNING TO TURNOVER OF OUR OTHER
  TYPES OF PROJECTS?