Walking is a great way to stay physically fit, clear the mind, and check out your surroundings or nature—just an all-around great way to unplug and unwind. Unfortunately, I’ve recently found myself going on some pretty discouraging walks…

There’s nothing worse than having a prospective new client or a past client call you up and ask you to do a “walk-through” of their partially completed home construction project. As you look around the half-finished work, mistakes galore, shoddy finish work, and blatant code violations—you think: How could a builder or project manager let this happen? And then abandon the homeowner and project? Or end up fired? Don’t they care about their reputation? 

So, as I take these walks with a homeowner through each floor, each room, basement, attic, and listening to what they’ve been through—the lack of communication, multiple schedule changes, an emerging picture of the incompetence of the builder, and no resolution in sight—it breaks your heart. And then they tell you how much they’ve spent thus far. Ouch!

And then they ask you the question you knew was coming: Can you fix this? And how much will it cost? I’ll share some practical advice based on my own experience and lessons learned.   

FIXED-PRICE ESTIMATE OR OPEN BOOK?

I’m not the only one who has been faced with taking on a partially completed project. Sometimes it’s a complete house, sometimes just a one-room renovation. Either way, the big question is this: Do you come up with a fixed-price estimate or go with an open book? The homeowner may have an opinion about which option they want (usually fixed-price), but ultimately it’s your call. You must choose which option is financially best for your business and allows you to deliver the highest quality of work, materials, and meet all safety standards. 

EMPATHIZE 

Put yourself in the shoes of the homeowner: They’ve already spent out thousands—maybe tens of thousands—on this project. And so far, they have very little in return. They are stressed to the max. They are frustrated with the previous builder’s ineptitude. And they feel like they have lost control of the situation. Thus, they will lean towards a fixed-price—it feels like they have one thing under their control—the budget, a fixed amount with the expectation that the work will get done. Just tell me how much this will cost, and when can I move in?

Empathy is great—it allows you to feel their pain. And this will help you choose your words carefully as you explain to them your reason for going with an open book. 

PEEL BACK, INVESTIGATE, REPAIR

For me, the obvious choice is an open book approach. It’s how NS Builders operates most of our projects. And, in my opinion, it’s the only answer when taking over a partially done job. 

First, a thorough investigation reveals what has been completed, whether or not it meets our standards or necessitates we have to rip it out and start fresh. At this point, you must have an honest, frank conversation with the homeowner. Explain in detail and show them why a wall needs to be reframed or how the plumbing doesn’t meet code. Provide context as to why you need to rip out work they’ve already paid for—and how you plan to do it right. This is a collaborative effort to get to the light at the end of the tunnel and bring this job to completion. Over-communicating is what will help them get past the sting of realizing that the money they have spent thus far is lost. Empathize with them, but explain that you must work with an open book going forward to meet your expenses of time, materials, and labor as they arise.   

Second, it’s what I can’t see that really scares me. This is where you have to peel back, investigate, and repair. There could be so many underlying problems just waiting to be discovered—expensive problems like structural, HVAC, or electrical. There’s just no way to know until we get started. So, this is why I insist on an open book rather than trying to come up with a fixed-price. I can’t afford to lose money on a job I’ve taken over—we can’t cover someone else’s mistakes or risk putting our name on something that could ultimately fail. 

As I shared in the Coffee Break Q&A video, NS Builders values our clients immensely and are always eager to work with a past client. So, we promise to do all we can to save them money and deliver exceptional work. Because there’s no greater feeling than going on the final walk-through with the homeowner and knowing you’ve exceeded all their expectations!  

FINAL THOUGHTS

Ultimately, it’s up to you to decide whether to go with a fixed-price or open book when taking over a partially completed project. Identify the pros and cons and count the costs of both. And whatever you choose to do, always focus on the most important thing: The highest level of work you can deliver at a price you can afford that makes for a happy, satisfied client. 

Ready to see what NS Builders can do for you? Whether new home construction or a modern kitchen renovation defined by luxury, we can bring your dream home to life. Give us a call today! 

—Nick Schiffer