Build cost transparency is essential


2018 has seen a continued boom for the building & construction industry but it’s not all good news in the marketplace as some of the major players in the New Zealand construction industry face growth challenges and lower margins and more inexperienced residential building companies pop up to meet the high labour demands of the sector.

Surety around your new home build has never been more important, after all it’s the largest lifetime investment most people make.

One of the benefits of working with a financially stable building company like Calley Homes is the knowledge that your build project is being managed by a team that not only have years of experience in managing a successful building business, but also have sound industry knowledge that comes from holding governance roles at regional and national levels in the sector.


“Transparency during the design and build process when considering and finalising costs, means customers are fully protected when it comes to investing in their biggest asset”, says Johnny. “Too often we find clients who have had plans priced by a builder and so much is left out leaving uncertainty over end costs”.

“Whether it’s a $800,000 build or a multi million dollar build we understand the true cost and the value we can add. We put our clients needs at the forefront of every project and being fiscally responsible is part of that. Cutting margins to win a project just isn’t going to work for anyone”.

A construction industry survey by Teletrac Navman and Civil Contractors NZ showed the top three issues for construction companies in the procurement phase were clients' focus on lowest price (81 per cent said it had high to very high impact), cut price bidding by contractors (76 per cent), and a lack of visibility of future work (75 per cent). *1

Even though builders are in hot demand, the evidence is that many builders undercut themselves. A BDO survey of the construction industry in April found the margins many builders were quoting was not enough to survive. *2

“Comparing apples with apples is important but when you are providing customised solutions to a unique home you need to ensure every contractor involved is also being real about their costs and can provide the turnaround. We deal with experienced sub contractors who we know and have value in the relationship”.


To give some further insight into how do we manage the challenges of operating a successful building business read on…

Cashflow

Cashflow is managed by a crack team of accounts assistants (or accountants) who manage the books like a well-oiled machine. You simply can’t afford to not have a good understanding of what’s coming in and what’s going out and also what’s ahead. We review each and every project and we forecast carefully.

Margins

The problem with very tight margins is there is very little room for error. Because we never compromise on the end result we work hard with trusted suppliers so we continue to get the best price for the best product. And we are transparent with our clients reflecting our margins clearly.

With procurement reviews in place we act swiftly if costs start to increase and we minimise unforeseen increases with national contracts that lock in pricing for each project duration.

Managing a Business

At Calley Homes we pride ourselves on having a real traditional building company makeup but what does that mean? To us it means doing the right thing with the right people. From the apprentice to the Project Manager we ensure we develop a committed team who make sure the client and the client’s needs are top priority. Our professional and qualified craftsmen work alongside an experienced management team so each milestone is a success.

Obtaining and Retaining Quality Staff

After ten years in business we are proud to say we are multi award winning builders with seven Gold Awards, A Lifestyle Award, a Category win and a Regional Supreme Award plus national recognition with two National Gold Reserves. This is a true reflection of our teams dedication to each client’s project.

“We consistently invest in upskilling our team and the results talk for themselves. We don’t have too much of a problem attracting the best and growing our awesome talent pool. We do invest in apprentices and bring them through the business with our ethos”. Says Johnny.

If you want certainty and confidence in your new home build then contact Johnny at Calley Homes

0274449875

References:

*1. https://www.stuff.co.nz/business/105921923/margin-pressures-push-new-zealand-construction-firms-over-the-edge

*2. https://www.stuff.co.nz/business/property/106039241/be-careful-what-you-sign-the-problems-tripping-up-the-construction-sector


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PH: Johnny Calley 0274 449 875

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Office Address:

90 Second Avenue, Tauranga 3110

Postal address:

PO Box 14196

Tauranga Mail Centre

Tauranga 3143

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