Finally rigorous process management comes to small residential construction The larger home builders have always had large scale project and modern business processes for building homes. They are able to leverage large economies of scale to more efficiently produce homes. This enables them to produce a home at a lower cost than a typical general contractor isn't able to do as efficiently. A friend of mine built his own home and had to deal with the vageries of the New Mexico and his project management tool was his spreadsheet. Smaller builders cannot afford or often lack the knowledge to implement such systems. A Construction Management System can be difficult to implement. 6x6 Builder has developed a web based system for managing, estimating for the builders. Their online building cost estimator for general contractors that integrates construction cost estimating and control tools in a complete construction project management system. This means a couple of things. The contractor doesn't need to manage an expensive piece of software. Being web based, all the problems that a typical software installation would entail are eliminated. The monthly price is reasonable at $69. It provides a rather extensive feature list but it provides an organizational structure that most general contractors lack. Most general contractors are not known for their organized management skills. The web based system is feature rich since it allows you manage you business, sub contractors, estimates and more.

One particular feature I found interesting was the ability to use and generate master templates for project and then customize these templates for later use. This allows a contractor to work from an existing template, customize it and then save it as a general template. This provides a pretty serious advantage since it's a great starting point. Estimating is always a somewhat black art but with 6x6 Builder's web based solution it's a lot more accurate. The system can query the latest prices on materials, fire off request for quotes and more. There is an entire subsystem devoted to sub contractor management along with pre-written contracts. Working with the system during my 7 day trial, I can easily see how this system properly used can save a contractor a huge amount of headache and time. In fact I will certainly use it as an owner/builder for my next home.

Labels: construction, constructionmanagement, constructionsoftware

  ¶ Finally rigorous process management comes to small residential construction 0 Comments

It's the fundamentals Stupid While Wall Street is rejoicing about the 50 basis points rate cut, I watched the talking the pundits discussing whether or not this would "save the housing" sector. It's unlikely to do that since the fundamentals of the housing market haven't changed. Properties are well out the reach of the average home buyer. In many California markets (San Diego, Bakersfield, Tattoine) properties were bid by people speculating in the market. Now that the easy credit is gone, there isn't anything supporting these prices. Prices will continue to moderate or stagnant for the next three years in California and the cutting of the discount rate isn't likely to change that little fact. In the end people need to be able to afford their monthly mortgage payment and you cannot do it with many California communities.  ¶ It's the fundamentals Stupid 0 Comments

I hate to be a contrarian. But given the state of the real estate market and mortgage market nationally, now is a good time to become a mortgage broker. Downtimes are the best time to enter any market. (It's the buy low part of the buy low/sell high). Many mortgage brokers have been forced from the market and quite frankly the marginal players have been eliminated. The California Mortgage Exam is one of the tougher exams national. Compucram offers a downloadable free trial of their California Mortgage Lending CompuCram® Exam Prep Software. This software prepares you for the California mortgage broker exam. It's downloadable and more importantly offers a guarantee to help you pass your mortgage exam.  ¶ I hate to be a contrarian. 0 Comments

Countrywide to lay off 25% of workforce. Here's a game I like to play. When the CEO says that

[Mozilo] assured his audience that Countrywide's "proprietary technology" would help it meet its goal "to avoid any foreclosure." Countrywide invariably kept to "prudent underwriting guidelines," he said, to ensure that its adjustable-rate borrowers could handle the highest interest rates that might kick in during the life of their mortgage.

(Hat Tip LA Times)

It's time to short the stock. Their technology wasn't good enough to stave off the collapse off the credit market So they laid off 25% of their workforce. Oh yea they expect loan originations to be off by 25% this year. I am sure they are giving great RIF packages to those employees. Those that might remember I said the subprime market specifically in California would do EXACTLY THIS!

Labels: countrywide, countrywidelayoff, Countrywiderevenue, countrywiderif

  ¶ Countrywide to lay off 25% of workforce. 0 Comments