Constellation Showcases Opportunities for the Evolving Homebuilder at IBS 2023
Constellation Showcases Opportunities for the Evolving Homebuilder at IBS 2023
Join Constellation HomeBuilder Systems technology leaders as they answer your operational questions and give expert advice on navigating challenges and opportunities at this critical time.
Constellation HomeBuilder Systems, the largest provider of home building software solutions and services will join the 2023 NAHB International Builders’ Show (IBS), taking place January 31- February 2 in Las Vegas. Constellation’s booth – #W1832 – will feature live strategic technology sessions on the latest applications, software, and tools homebuilders can use to remain competitive in an evolving market.
The Constellation technology experts will discuss topics that are critical to a successful homebuilding operation, such as providing exceptional customer experience, calming customer anxieties when buying in an uncertain market, leveraging real time data to improve operations, cost tracking, and the latest homebuilding technological innovations.
John McManus, Founder of the Builder’s Daily, will share his expertise Tuesday & Wednesday at 11:00am at the Constellation booth (#W1832). On Tuesday, January 31st, he’ll help present data-driven advice for the 2023 selling season. On Wednesday, February 1st, join John McManus for a deep dive on data-empowered purchasing.
Chris Graham, President of Constellation HomeBuilder Systems can’t wait to be back in Las Vegas for IBS 2023, saying: “With a long tradition of supporting builders and the industry, we are eager to discuss our latest innovations to help builders compete, delight their homebuyers, effectively work with their trade partners, and improve their business collaboration. Now is a great time for builders to plan for the future, and we can help!”
Highlighting the digital experience for builders and buyers, Constellation will showcase a range of new solutions and features. Tech experts will show builders how to streamline their listing and sales process with products like the New Home Listing Service Distribution Engine, which optimizes new home marketing by distributing accurate listings across the web, including websites like Realtor.com and Kijiji. Builders can also get a close look at SalesXpress, the modern platform that digitizes the new home sales and design process online and offline. NEWSTAR and BuildTopia, Constellation’s complete ERP software systems, will also be on display so that builders can explore their powerful functionality and deep ecosystems.
Industry experts will showcase the importance of data collection and analysis with the Homebuilder Common Data Model, which leverages a standardized set of industry metrics to offer you timely, valuable insights about your business performance and regional homebuilding market. In addition, customer experience experts will be on hand to show builders how to enhance their client relationships with Homeowner central, allowing builders to reduce warranty costs by engaging and communicating with their customers.
Learn more about what Constellation has in store for IBS 2023 and book time for a private consultation here.
Constellation HomeBuilder Systems to Introduce Game-Changing Industry Data Platform at Build Smarter Conference
Constellation HomeBuilder Systems to Introduce Game-Changing Industry Data Platform at Build Smarter Conference
Constellation HomeBuilder Systems, North America’s largest provider of homebuilding software and services, is set to reveal a new data platform that will allow builders to improve their operational insights while freeing up scarce data resources to add more value to their businesses.
With the Homebuilder Common Data Model, Constellation will be able to create a standardized set of industry metrics. By accessing the platform, homebuilders can then access highly valuable reporting, analytics, and dashboards, as well as benchmarks to compare their performance regionally. Many widely-used builder metrics, including backlogs, active selling communities, average sales price, net sales, and more, will be made available.
The platform is built to leverage Constellation’s popular construction ERP systems including NEWSTAR, BuildTopia, and FAST and to provide value across the industry.
“We’re thrilled to be able to share this important innovation with homebuilders,” said Paolo Benzan, Vice President, Data Strategy at Constellation HomeBuilder Systems.
“In this critical moment in the industry,” Benzan added, “Builders need access to timely, accurate, information and trends as they face higher costs across the board. With how expensive and hard to find data resources are, we’re proud to introduce this great way to capture insights while reducing your data footprint.”
A can’t-miss presentation of the Homebuilder Common Data Model is set for Constellation’s Build Smarter Conference. The event will be held in-person from Chicago, Illinois from November 7-9, 2022, with virtual streaming for Constellation customers available as well. The presentation will include a detailed walk-through of this new platform and the key data it will offer homebuilder finance, operations, sales, construction, and other teams. Attendees will see examples of benchmark data and learn the various options for accessing the information.
Chris Graham, President of Constellation HomeBuilder Systems, shared his excitement about this announcement. “With true industry expertise behind each of our solutions, we’re proud to be a top, cutting-edge partner to the homebuilding industry. We are committed to empowering builders with the information they need to simplify building processes and maximize return on investment.”
“With the Homebuilder Common Data Model,” Graham continued, “We are powering the industry to build smarter than ever at a time when its impact is needed most.”
About Constellation HomeBuilder Systems
Constellation HomeBuilder Systems is the largest provider of software and services in the building industry. Their innovative software solutions, available as standalone or integrated systems, empower builders with information to drive business objectives and simplify the process of building homes and condos. Constellation HomeBuilder Systems is the home building software division of Constellation Software Inc., an international provider of market-leading software and services for specialized industries, which is traded publicly on the Toronto Stock Exchange.
For more information, please contact:
Elmira Abushayeva
Vice President of Marketing, Constellation HomeBuilder Systems
+1 (289) 859-4866
eabushayeva@constellationhb.com
4 Things You Should Consider Before Buying a New Construction Management Software
In the second part of our software selection journey, we will look at what is most important when considering buying a new homebuilder management software to run your back-office operations. When comparing software platforms and vendors, it helps to employ a framework to ensure that your team emphasizes the correct areas of the search. It is best to consider this framework as levels of building a pyramid. The base levels of the pyramid are necessary to support the upper levels which are the true keys to success. Once you’ve established your internal operational needs, there are four key points to consider when evaluating a construction management software.
The 4 key considerations when evaluating construction management software for homebuilders
#1
Product
Does the software enable your company to meet the objectives outlined in your 5-year plan? While features and benefits are important in making a final decision, they should not influence the answer to this fundamental question. Software should help the organization achieve its goals rather than hinder them. Does it integrate/work with your Accounting Software?
With BuildTopia, a powerful cloud-based construction management software for residential home builders, you won’t have to spend time learning a whole new accounting system, you can simply continue using the software you prefer. This is due to BuildTopia’s seamless integration with popular construction estimating and accounting software for builders, like QuickBooks, Sage, and Microsoft
#2
Price
Consider how many homes you build in a year, then forecast the next five years. Determine how much you are willing to spend on the software for construction management – per home – and how you expect that platform to return your investment by increasing your operational efficiency and profitability. Consider the cost of software implementation, including computer hardware, software licensing, maintenance, and the time it will cost your team. Consider the cost of not implementing a construction project management software.
#3
Partner
When you choose a Homebuilder Management Software, you are also choosing a software company that will become a long-term partner in your company’s success. Ensure that your software vendor is stable and has the necessary resources to stay in business for the long run, is committed to improving its software by incorporating new technologies, capable of implementing and continuing to ensure that the software is used effectively throughout the organization by providing the desired levels of support and training for your team.
#4
People
Without skilled hands to operate it, even the most advanced and comprehensive Homebuilder Management Software platform is ineffective. Effective User Adoption is the key to any successful ERP software implementation. To ensure effective software adoption across the organization, every employee in your company must understand the importance of the software to the organisation’s bids, estimates, project scheduling, and cost management operations, not just in their department, but across the whole organization.
Now that you know what to look for when considering buying a new homebuilder management software, you can prepare your business for new tools and begin your journey to selecting the most suited construction management solution for your homebuilder needs in just four simple steps, as well as learn how to determine whether it meets your technology needs. In the third part of this five-part series, we’ll go over the first two steps to selecting and purchasing construction estimating and project management software.
5 Benefits of Construction Management Software
While most homebuilders would acknowledge that they require a complete construction management software solution, many are still piecing together various spreadsheets and tools to handle their operational needs. In this 5-part series, we will provide you with guidance to select the right software solution that fits your needs. We will also demonstrate the features and benefits of construction management software and examine the keys to a successful implementation.
What is construction management software, and why do you need it?
Construction management software is a tool designed to improve productivity, enhance efficiencies, and streamline the operations of residential builders. The software is more than a construction sales leads system, an accounting system, or a home production system: the true value of the software is in integrating all these business functions together. Residential construction companies approach homebuilding in many ways – all of which can be optimized through a comprehensive management system.
The 5 benefits of construction management software
360-degree operations view
Combining all pertinent information, such as billings, costing, labor, materials, committed costs, change orders, purchase orders, and profitability displayed in a single view, provides you with the insights needed to quickly identify anomalies, correct them, and make smarter business decisions.
Complete project life cycle management
Achieve project control and accuracy by having the ability to manage estimating, scheduling and purchasing from the beginning of a project to closeout. With the added benefits of workflow and document management that captures all completed activities, tasks, reviews, and approvals. It can compile real-time actual to estimate reporting, and ensure projects are completed on time and within budget.
Up-down and side-to-side reporting
It also measures the business effectively by reporting from the individual lot level to the community, division, and company level, including multi-company and joint ventures, and automated bank reporting for loan draws.
Integrate back office and field personnel
With fully integrated mobile and document management solutions, superintendents, trades, and vendors can perform complex tasks with ease, including schedule changes, invoices, and purchase orders.
A single version of the truth
Everyone is aligned across the business and has access to the same information. Every number entered in the software reconciles and is the same across all functional areas of the business, from accounting to sales to project management.
Laying the groundwork
Understand YOUR own unique requirements for Homebuilder Management Software before speaking with software companies or watching a single software demonstration. It is important to identify what your five-year goals are, and how software tools will help you achieve them. Keep this in mind as you set off on this journey. This software will serve as the foundation for all your company’s future business operations. In the second part of this five-part series, we will look at the 4 key considerations when evaluating a construction management software.
Reasons why a Homebuilding Management Software is the Most Powerful Tool in Your Toolbox than a Point Solution
Homebuilder Management Software is a tool designed to improve productivity, enhance efficiencies, and streamline operations for a residential construction company. It is so much more than a sales system or an accounting system or a home production system: the true value of the software is in linking all these business functions together.
What is a Homebuilder Management software not?
- A Standalone Software System
Homebuilder Management Software is more than just a single software system such as estimating, project management, or warranty management.
While these systems offer software to complete a specific task or set of tasks, they lack integration with the other functional business areas. - A System that only benefits one department
While certain departments may benefit from Homebuilder Management Software more than others, the goal is to improve the
business overall. A more streamlined and efficient business tends to increase productivity and profit, as well as improve employee and customer satisfaction. - A Short-term solution
Homebuilder Management Software is not something you buy or use as needed, rather it is a complete solution that becomes the lifeline of your business. With the ability to automate and integrate the functional areas of any residential construction business, Homebuilder Management Software quickly becomes a solution that is heavily relied upon.
Benefits of Homebuilder Management Software
- One Dashboard, 360-Degree View
All pertinent information, including all billings, costing, labor, materials, committed costs, change orders, purchase orders and profitability is displayed in a single view.
Drill down on each item to find and correct anomalies quickly and efficiently. - Integrate Back Office and Field Personnel
With fully integrated mobile and document management solutions, superintendents, trades
and vendors can perform complex tasks with ease, including schedule changes, invoices and purchase orders. - Report Up-Down and Side-to-Side
Measure the business effectively by reporting from the individual lot level to the community, division, and
company level, including multi-company and joint ventures, and automated bank reporting for loan draws. - Single Version of Truth
Everyone is aligned across the business and has access to the same information. Every number entered into the software reconciles
and is the same across all functional areas of the business from accounting to sales to project management. - Complete Project Life-cycle Management
From the beginning of the project, manage estimating, scheduling and purchasing. Workflow and document
management enables capturing all completed activities, tasks, reviews and approvals, compiling real-time actual to estimate reporting, and ensuring projects are completed on time and on budget.
Let Constellation help you choose the homebuilder management software solution that is right for your business
These are just a few examples of the benefits of adopting modern homebuilding software and services, and how it can help you simplify the entire home-buying process. By utilizing
Constellation HomeBuilder Systems Software and Services Ecosystem you’ll ensure you’re always an industry leader.
If you want to get started with fully integrated systems and standalone solutions for builders, vendors, developers, and buyers schedule a demo now.
How Digital Technology Helped Home Builders During the Pandemic
If you know these proverbs about change: “If it isn’t broke don’t fix it”, “Why change something that’s always worked?”, “Don’t improve what’s efficient.” – the list goes on and on.
Other than the Homebuilding industry can you name an industry that adapted to technology more slowly?
What happens when industries don’t change? They became obsolete.
Still, it nearly took a global pandemic for the home-building industry to go digital!
Digital trends for home builders
Pre-pandemic contractors or homebuilders that felt a little hesitant about adopting or fully embracing new technology have had to adapt fast. They now agree they are seeing the benefits.
Saying that construction software and cloud-based platforms have revolutionized the entire construction process
during the pandemic is an understatement.
- Communication has been streamlined: Cloud-based software houses all communications, proposals, CRMs, and more in one single location.
- Cost control and budgets are better managed: Utilizing construction software ensures home builders meet their target budget.
- Internal team communication has never been easier – whether you’re a trade, vendor, home builder, or in corporate management, you’re able to get valuable insight on all your current projects in real-time.
Even so, it almost took a global pandemic for the home building industry to quickly learn how the right software makes a difference.
Keeping an eye on your ROI
With so many changes in the last year, it’s important to take a step back and assess your results.
Growing companies need to optimize productivity, visibility, and collaboration in order to maximize revenue.
Big Question: How do you know what platforms are providing you with the highest ROI?
Through using online platforms that are built and track internal metrics, you can easily push operational efficiency throughout scheduling, estimating, and purchasing through to sales management and CRMs and also include websites and digital
marketing.
Evaluating your tasks’ ROIs helps you determine which practices and platforms work best for your company and which ones can be retired.
Find out how our homebuilding software and solutions can provide you with the highest ROI
How Technology Is Impacting The Home Buying Process
If we’re already buying everything online, why should purchasing a home be any different? Since social distancing has become the new norm — voluntary or not — technology is more important than ever. Or is it?
From virtual open houses to contactless home inspections and never-ending Zoom meetings, how we approach the home-buying process post-pandemic has changed. GONE are the days of opening and closing every door to ensure they don’t rub or squeak
to knocking on neighbors’ doors for a friendly conversation during the due diligence phase and running our hands over every surface, checking for hidden repairs during our final inspection.
Real estate is quickly becoming a digital asset.
In the coming decade don’t be surprised if you see real estate sales taking place entirely online, iBuying growing in popularity
or properties being sold for cryptocurrencies.
Remember it wasn’t that long ago when real estate agents had to drive to get all the signatures.
Let Constellation help you bridge the gap between Homebuilding & Technology
These are just a few examples of the benefits of adopting modern homebuilding software and services, monitoring platform ROI and how technology is impacting the home-buying process. By utilizing Constellation
HomeBuilder Systems Software and Services Ecosystem you’ll ensure you’re always an industry leader.
If you want to get started with fully integrated systems and standalone solutions for builders, vendors, developers and buyers, schedule a demo now.
Explore the Future of Digital Homebuilding Solutions with Constellation at IBSx 2021
The last year has been a challenging time for anyone working in the home building industry. Homebuilders have had to innovate quickly and take advantage of new technology to effectively meet the needs of their customers.
With so many introductions, first meetings, design consultations, and closings happening virtually, builders must ensure that their online presence and virtual solutions are as welcoming and personable as the atmosphere in their offices and showrooms.
All these changes have been challenging, especially since we’ve been separated from most of our colleagues and professional network for the last year. That’s why we’re so excited to announce that Constellation HomeBuilder Systems will be a Gold Sponsor of this year’s virtual International Builders’ Show, IBSx 2021.
Why We’re Excited for the All-Virtual IBSx 2021
Although the Constellation team is saddened that we can’t gather in person, we’re thrilled at the opportunity to attend IBSx 2021 and showcase some of the solutions and technologies that have been critical to helping builders around the world adapt to the new virtual home building process.
This is a fantastic opportunity to learn from experts, who can speak to the process of digitizing every aspect of a homebuilder’s business. In addition to these active learning opportunities, there will be live and interactive networking events, forums, and meet-ups, which offer attendees the chance to discuss relevant topics in the building industry with small groups of their peers.
Constellation’s Solutions You Can Explore at IBSx 2021
In addition to these educational and networking events, there will be many opportunities to explore a variety of Constellation’s solutions through live product demos conducted by our experts.
These solutions include:
NEWSTAR SalesXpress
Make smarter, data-led decisions with SalesXpress, an innovative solution that allows builders to support their digitally savvy customers at every step of the purchasing journey. This sophisticated software allows builders to capture leads, create proposals, and even initiate sales directly from their website.
CustomerInsight
Builders who want to impress customers need to offer a personalized experience. CustomerInsight helps to deliver the advanced analytics that are required to build meaningful relationships with customers. Don’t rely on surveys or metrics – CustomerInsight can help win referrals while simultaneously lowering margins and promotional costs.
NHLS Distribution Engine
This platform is dedicated exclusively to NEW homes. NHLS provides the listing hub and distribution portal builders need to connect with buyers across North America. NHLS can help you manage, aggregate, and distribute your listing information to multiple marketing channels, and then manage the leads coming back in.
Design Studio Manager
Design Studio Manager allows builders to offer a fully responsive design studio environment to customers shopping both online and in-person. The intuitive layout allows your staff to curate collections for each customer with the touch of a button, simplifying the sales experience.
BuildTopia Reporting Dashboards
Get a visual representation of your live data with BuildTopia Reporting Dashboards, a solution designed to give your team a range of valuable insights packaged together a slick, easy-to-use layout.
Attend IBSx Free as a Guest of Constellation HomeBuilder Systems
There are so many new solutions to explore, and it can be a challenge to find the time to learn each one in-depth. IBSx 2021 is a great opportunity to get an introduction to all of the innovative solutions offered by Constellation HomeBuilder Systems at our virtual booth.
We’re excited to see all of our colleagues and friends at IBSx 2021 from February 9th to 12th. For a unique opportunity to attend as our guest, click here to register for a free expo-only pass.
How Attending the Tech Lab at the Build Smarter 2019 Conference will Help to Streamline Your Team’s System and the Homebuyer Journey
Almost 80% of customers expect consistency across departments when they’re interacting with a company, according to the 2019 State of the Connected Customer Report by Salesforce.
Is your team hitting that expectation?
According to this same report, 60% of customers see most companies as having siloed departments rather than one cohesive system.
What does this tell us?
Businesses who aren’t already using an ERP system that syncs across departments must innovate or they’ll get left behind. But what if you’re not sure how to use certain functions? Attending the Tech Lab at the Build Smarter 2019 Conference will help you out with that because it’s not just about having the software.
It’s about knowing how to maximize efficiency so that every department is working as one big system.
For example, if there’s a breakdown of information from the sales center to the purchasing department, the homebuyer isn’t going to have sympathy for you. This applies to all data that travels across departments. So, making sure that every department knows how to use the ERP efficiently is paramount.
Homebuyers see that through the experience they’re going through starting from their first interaction with your company all the way to referral sales. Based on the same Salesforce report, 84% of customers say the experience they had with the company they bought from is just as important as its products or services. That’s 4% up from last year’s report.
It’s safe to say that if your departments aren’t working together to create an exceptional experience for your homebuyer, then you should start thinking about it now.
When you get a ticket to the Build Smarter 2019 Conference, you’ll be able to spend time at our Tech Lab to clarify information about features, clear up any confusions you had, and ask about functionalities you’d like to know more about. It would be like having a live product specialist at your side all day.
The conference will be held on November 18-20th at the Fairmont Scottsdale Princess Hotel in Scottsdale, Arizona where hundreds of North America’s most information-hungry builders will attend. Whether you’re in marketing, sales, estimating, purchasing, warranty, customer success, or leadership, this conference will help you be more efficient day-to-day.
Top Strategies & Technologies for Multi-Family Home Builders
Improve your Multi-Family development process, construct the right mixed complex project for your land, and manage your construction effectively.
As a multi-family home builder, you understand the extra amount of back-office technology, time and resources needed to bring a multi-family production to market. Whether it is a high-rise condominium or a community of townhomes, managing all aspects of the production is critical to attracting modern buyers to your multi-family project and will ultimately allow you to offer a high-quality condo or unit at a reasonable price.
Research Your Land Options & Maximize Your Project Construction Potential
The building process begins with land development. Due to the increased complexity of bringing a multi-family complex to market, homebuilders should always compare various plots of land prior to the purchase. Factors to consider include the location of the community, its surroundings, and which possible project styles can be developed with the unique attributes of each plot of land.
Homebuilders should be looking at the various ways product design can be optimized to improve the quality of life for homeowners in addition to how profitable the project can be when the community goes up for sale. For example, if you have a land option by a body of water with a nice view, consider optimizing your project design to include a high-rise portion, this way, you can offer a premium value add-on to the high-rise suites by charging extra for the units with a view. If you are considering a rural area, perhaps offering townhomes to allow for more living space for prospective buyers that are families might be a better option since families tend to enjoy more space.
Don’t leave the process of planning the development to chance, you should always leverage tools that allow you to compare building scenarios based on the types of land available against the profitability of the construction type. This ensures that you are purchasing the right land for your business goal, creating an estimate of which construction project is possible on the land, and forecasting how profitable the project will be if you acquire the land.
Make Informed Decisions Through Integrated Accounting
Your accounting team should have clear oversight. Your accounting division should become preemptive regarding company purchasing & costs of resource acquisition and construction. They should be able to forecast profits from the sales opportunities existing in the company pipeline as well as project profits from upgrade offerings sold in your multi-family projects.
All your business functions and processes should tie back into your accounting department. When this process shift occurs, decision-makers at your building firm will begin to understand clearly each of their department's success metrics, and how to be more efficient to ensure the company meets pre-determined goals. Sales teams will become results-driven, your construction team will become time sensitive, and your purchasing team can become more strategic about how they acquire assets for construction. Ultimately, this efficiency in your build process will allow you to offer the suite or unit at a reasonable price while securing your forecasted profit.
Establish a Dynamic and Profitable Operation at your Multi-Family Sales Centers
Making the needed sales records and upgrading revenue is critical to the bottom line for the multi-family project profitability. But multi-family homebuyers often expect special amenities, this is especially true with high-rise productions where homebuyers are still investing large sums in their mortgages for a shared community. Also, décor studio management is a trending must for builders and it could potentially become complicated as the number of units increases in multi-family production in comparison to a single-family project.
Implementing a tight-knit process amongst your sales and décor studio staff is a critical element to the multi-family puzzle. Visiting sales centers has become a ritual for the modern home buyer. Prospects expect to be in awe when they enter a sales center and they want to see the various unit options, amenities and upgrades that are available. Implementing a sales and décor management solution that allows homeowners to create their dream space while still allowing you, the builder, to commit to those upgrades in your build cycle, is key. Your sales and décor management software should digitize the sales and upgrade selections process. It should allow builders and their homebuyers to focus on the experience of enjoying the product offering inside and out instead of being too overworked with paperwork and product catalogues.
To hear a panel of design studio experts and homebuilders discuss décor center management technology trends, watch “The All NEW Design Studio Experience” recording.
Select a system that showcases all your available suites/units for sale in real-time, your system should allow your décor agents to link upgrade packages to a homebuyer’s contract and seamlessly drive that data from the sales center to the job site where construction has every detail needed to deliver these upgrades. After all, if there is one thing that should be autonomous and accurate is the process between sales to construction.
Manage More Deficiency Requests while Optimizing Your Customer Experience
If you are a home builder considering the production of a multi-family project, be aware that you will be catering to more homebuyers since you would be building upwards as well as outwards. How can home builders manage deficiencies or warranty requests in large amounts? The secret can be found in homeowner portal technology, perfect for multi-family projects and popular amongst condominium property managers. These portals allow homeowners to self-serve their warranty needs directly with the product vendor – and can issue claims through the portal anytime, anywhere via mobile. This eliminates long hours on the phone and standardizes the way builders manage and fix homeowner deficiencies. After all, a modern multi-family project needs all the smart features and technology that will enhance your home quality and still prove to be helpful in managing large amounts of warranty requests the modern way.
The Verdict
If you are interested in an integrated solution for your next multi-family project, feel free to contact us. Learn more about NEWSTAR’s capabilities for multi-family productions. Whether you are an existing Constellation customer or a home builder, find out how NEWSTAR can support multi-family builders in various building functions.
Source – The Many faces of Multi-Family
Five Steps to Selecting & Purchasing Homebuilder Management Software
**Read this post before beginning your search for homebuilder management software!**
Homebuilder Management Software is a tool designed to improve productivity, enhance efficiencies, and streamline operations for a residential construction company. Selecting this software is a decision that will impact your business for years to come.
Before reaching out to software vendors, it is important to establish your goals and requirements. The following steps are designed to help home building companies identify which software is best for managing their business and which technology partner can support their goals and company structure.
For the full e-guide, try reading “A Step-By-Step Guide to Selecting HomeBuilder Management Software”.
Step 1: Establish Goals and a timeline
By establishing what your company is currently lacking in terms of process and what your company already does successfully, decide on an overall goal. That goal may include increasing revenue and profitability, improving communication between the office and the construction site, enhancing accessibility during project management, increasing employee productivity or even increasing customer satisfaction. The timeline should be your company’s second step. Highlight key moments in this timeline including the research phase, the software provider review phase, when a final selection is needed, and when the implementation process needs to conclude. This will ultimately guide the software provider in seeing which integrated solution is best for your company, and what is the best possible method to implement the software to fit the structure and goals of your company.
Step 2: Determine Software Requirements
Selecting a Homebuilder Management Software system requires careful thought and consideration. All companies are different, and therefore requirements will be unique. First, document your company’s processes and identify unique systems as well as strengths and weaknesses. Then determine how technology can address these processes. Try to identify these requirements across all your core business functions including land development, purchasing, sales, accounting, construction and warranty departments. Beyond that also think big, how many homes did you produce this year versus how many do you hope to accomplish the next? Does this system function for single or multifamily communities? By determining what the requirements for your business will be, you can effectively mitigate risk and ensure all avenues are considered before proceeding with your software purchase.
Step 3: Explore Software Vendors
Once goals, timelines, and requirements have been established, the next step is to research and evaluate Homebuilder Management Software vendors. When selecting a vendor, there a few checklist items you must consider:
- Ask questions relating to your business’ specific processes to ensure it meets your needs
- Ask for a demo to get accustomed to the feel of the software
- Determine if the software meets your technology needs, such as whether they offer a cloud or hosted solution or requires an on-premise server
- Read software reviews with a focus on usability, functionality, quality, and support
- Keep in mind the five keys to consider during the software purchase process to avoid looking only at features and functionalities
Take the time to truly get to know the vendors available and the market. Look beyond the software to determine what each vendor is about. Consider building relationships with your final options, after all, selecting an integrated home builder management solution is essentially a company partnership.
Step 4: Learn about New Software
To ensure a vendor can help your business succeed, ask to read their case studies, watch product videos, and speak with customers currently using the Homebuilder Management Software. Ask the vendor for as many case studies, videos, and references as possible that relate to your specific business or industry. With the vendor’s references, you need to ask hard-hitting questions. Regardless if you feel the answer may be negative. All aspects of a software system and a technology partner will influence the trajectory of your company. Ask about the overall implementation process, was training provided by the partner? Why did they choose this vendor? And what are the overall benefits to their system in comparison to others? By asking these questions of reference, you should be able to gauge how the vendor performs, as well as the results you should expect by implementing the Homebuilder Management Software.
Step 5: Choose A Solution and Get Started
Once you have selected a vendor and are confident they can meet the needs of your business, you are ready to start the implementation process and begin your partnership with the vendor of choice. The ideal implementation process should begin with a kick-off meeting where the vendor will gain a better understanding of your business needs, determine the launch date and discuss best practices during this phase. Again, a great software provider will look at your current business processes, identify what is currently working then identify areas of deficiencies against the industry standard. Training services are also a must from a software provider, digital literacy skills must not be taken for granted especially for a specialized solution that is specific to home building management. Before launch, see if your software vendor can set up work scenarios to self-train your employees before real-life building tasks occur. With a gradual buildup of the software solution and slowly easing into end-user adoption, you will surely succeed with your software selection.
The Verdict:
The software selection process for homebuilders is a great time to solidify your company’s trajectory. Choose a strategy, establish a timeline that fits all your system requirements for your core business, explore your vendor options and their software, then finally, commit to your system with a trusted partner.
As a full-suite software provider for home builders, contact us for a business review, you can also read the full construction management software selections guide by clicking the button below. If you are unsure if enterprise resource management software is a worthy investment, find out how much other builders are saving in terms of time and resources.
What’s new this year at Build Smarter 2018 Conference?
This year’s conference in Nashville will be Constellation HomeBuilder System’s biggest turn out to date! What’s different about our 2018 conference is our session diversity. In previous years, our conference has mainly been for training customers on our software. This year, we have gathered the best industry experts to speak about the latest building trends, market data, and the future of homebuilding. We are introducing a new Builder University sessions track, which will be presented by top builders to share best practices. We are also bringing the largest customer care & professional services team to date! Drop by our tech lab for any software questions you might have. Also, make sure to join user groups led by our software specialists to impact the development of your software solutions.
NEW Builder University Sessions Presented by Top Builders & Experts
Our highly anticipated university sessions include DSLD Homes as an event to surely attend. DSLD Homes is famous for mastery of even-flow scheduling of their construction team and their trades. Learn from an industry leader how they bring a home to market in just 43 days! Another anticipated session presented by our sponsor Meyers Research will discuss national housing market statistics in hot markets and what it means to a builder’s strategy. You can also drop by our Builder Roundtable on “What Customer Experience Means to You”, where we discuss the importance in the Customer journey for homeowners during the sales cycle. We are also including home builder university sessions exploring future developments that include predictive homebuilding powered by artificial intelligence and the trend of perfricated housing and what it means to the overall process of homebuilding. University sessions are perfect for gaining best-practices in building and learning about future trends in your industry.
More User Groups
At Constellation HomeBuilder Systems, we develop our software with functionalities our builders demand. Attending your software user groups ensures you are part of the discussion on how we can best serve you to build more homes. The user groups are also the best time for us to reveal our 2019 product roadmap! Ensure your voice is being heard by telling us key performance areas you wish enhanced. After all, you are an expert in building and we want to learn from you as well! We added more user groups this year. Make sure to arrive promptly on October 3rd. User groups for NEWSTAR, FAST, BuildTopia, LandDev, and Design Studio Manager will be held live at 4 PM immediately followed by our cocktail reception in the main ballroom!
ROAD TRIP to a Signature Homes Design Studio
Wednesday, October 3 @ 1:00pm
We are currently offering builders interested in improving their design center operations the chance to hit the road with us and see the Signature Homes Design Center in Nashville. Signature Homes has kindly opened their doors to other builders to learn about the best practices for design studio management that improve appointment workflows and increase your product margins. Here are three main reasons to join this tour:
- Learn how production builders are improving décor appointments with homeowners to elevate brand and improve upgrades sales
- See how Design Studio Manager software works in real life!
- Experience Virtual Reality technology and how it is impacting the interior selections process
Improved Tech Lab for All Your Software Questions- Drop by, Anytime!
Our Customer Care & Professionals Services team are excited to meet you! Our tech lab is back better than ever, from setting up sales campaigns to creating on-demand reports, our experts have you covered. Visit our tech lab to meet one-on-one to have your software questions answered. Our professional services team will also be present to take on any product enhancement requests. Our tech lab is a great way to get hands-on support from our customer care team, so you can walk away with key tips from our experts on how to maximize your software value.
Exciting Sessions for Every Builder
Our marketing team has been hard at work the past few months securing the right speakers and builders to join us to bring you sessions that will truly impact your business towards success. Whether you are attending the user groups to see how you can influence your software or interested in the general education sessions from our builders, we are sure you will find something useful to implement in your business after your Nashville trip that will positively impact your company bottom line. Join us with +300 home builders from across North America. Register Today.
Home Builder Analysis: Home Building Software ROI
How home builders find savings by implementing software and deploying integrated and automated services for building tasks.
Our client’s success is our number one priority. Money matters a lot in homebuilding, every dollar counts, and beyond improving your product offering, finding the right land to build on and acquiring resources for the right price – investing in a homebuilding system that’s truly integrated could be the investment to save you money and resources in the long run.
As you will see, our findings show that an average home builder producing 200 homes at an average selling price of $350,000 and approximately 30 employees can profit from integrated management software by improving hours of ineffective process and optimizing the margins of their operations. We have taken a conservative estimate for wages and for all other variables, and this standard is based on decades of industry experience with hundreds of home builders using Constellation software in their business.
Profits during the Building Cycle
Calculating Field Construction and Sales Operations Savings
The industry standard index dictates that the average building firm of 30 employees about 10 percent would be directly involved in the construction process (3 employees), each builder would be compensated an average of 25 dollars. Due to improved data flows between the head office and on-site builders, each builder will save 4 hours per work week since manual paperwork is eliminated. Considering a 50-hour work week. It is estimated Builders can save an average $15,000 per year.
Hours per week saved due to automation = 4 Hours
X
Weeks worked per year excluding weekends = 50 weeks
X
Hourly wage = $25 Dollars
X
How many builder/ superintendents employed = 3 Builders
TOTAL Savings Per Working Year = $15,000
Calculating savings due to Reduced cycle time due to field integrations
More importantly, the amount of savings created from improved communication between builders and trades is around $90,000 dollars per year. A builder invests significant capital in terms of labor for each extra day a home sits on a lot incomplete. With the new and improved scheduling capabilities integrated back into your accounting process, expect a 6-day decrease in your home build cycle which ultimately cuts costs.
Number of homes built yearly = 200 Homes
X
Number of reduced cycle days for builds = 6 Days
X
Estimated cost per day when a home is under construction = $75
TOTAL Savings Per Working Year = $90,000
For more on NEWSTAR’s Scheduling benefits with on-location scheduling, see how DSLD Homes accomplishes a 43-day building cycle on each home, try “5 Keys to Effective Trade Management”
Calculating improved margins from field integration/scheduling
The biggest return on investment procured from the construction process will come from integrating your field operations with your schedules. Considering the 200 homes built annually by our sample builder with a 2% savings in upgrade costs averaging to about $ 35,000 per home closed – a building company can find new revenue of $ 140,000 simply by paying attention to the productivity of model upgrades and ensuring that the product upgrade process fits perfectly within your existing construction and trade management process.
Average upgrade revenue (option dollars) per closing = $35,000 Dollars
X
Improved options margins with field integration/scheduling = 4%
X
Number of employees = 30 employees
TOTAL Savings Per Working Year = $140,000
Savings Generated from Minimizing Back Office Manual Work
Calculating Home Closing Entry
Builders/superintendents are each spending 4 hours weekly processing POs. Within a company of 30 people, 1 person works full time administrating work orders and 1 person also helps on a part-time basis. At the end of the year, having a manual process is costing you roughly $ 7,500. As an integrated technology provider for home builders, our concern is the build process. An inconsistent process will also incur the builder running costs from building errors.
Hours spent weekly per builder Processing invoices/work order/PO’s = 4 Hours
X
Working weeks = 50 Weeks
X
employees are allocated to Invoice/PO/Work Order Processing = 1.5 Employees
X
Hourly wage = $25 Dollars
TOTAL Savings Per Working Year = $7,500
Calculating Hidden Costs, controlling committed cost
Industry hidden costs accumulate over the year from work order processes lacking accuracy in capturing billable and back charge items, keeping consistent to contracted pricing, consistency with buyer selections, and timely ordering and delivery of resources. With integrated software from warranty, to sales, keeping a steady schedule all the way to accounting. Our prospect builder will save $ 87,500 per year while creating an impactful home-buying experience to earn them future referrals.
Average base home sales price = $350,000 Dollars
X
Industry % – Hidden Costs, controlling committed cost = 25%
X
Number of homes built yearly = 200 Homes
X
Conservative adjustment = 50 %
TOTAL Savings Per Working Year = $ 87,500
Revenue Generated from Improved Process for Interior Decor Upgrades
Design center appointments are the new expectation when buying a new home. The secret to increased revenue for interior upgrades is to offer your homeowners enough customization to please them without sacrificing your automated process. For example, our customers are finding improved appointment productivity with our new product, Design Studio Manager. With a standardized décor center selections process that promotes relevant products to your homeowners, it is estimated that a NEWSTAR user with a Design Studio Manager integration is earning $15,250 dollars yearly (seems low; overall per year or per house per year? Or per week?). $5,250 dollars in earned revenue from having a software system that promotes your upgrade products logically. While the remaining $10,000 is saved money calculated by the manual process your décor agents would have spent selecting products for your homeowners manually.
Calculating Design Studio Revenue Savings
Time savings from integrated design software = 1 Hour weekly
X
Number of homes built yearly = 200 Homes
X
Hourly wage of a designer = $50 Hourly
+
Upgrade revenue per closing = $ 35,000
X
The percentage increase for optional upgrades = 15%
TOTAL Savings Per Working Year = $ 10,000 + $5,250 = $15,250
Savings While Providing Homeowner Care and a Simple Buying Experience
Closer to a home sale, builders on average are spending 2 hours with each new homeowner drafting contracts / coming to a sale agreement and 1.5 hours entering home close information. Over the course of a year – the prospect builder would have invested $17,500 for a task that otherwise could be automated. With NEWSTAR, expect sales selections to update in the accounting main module for real-time budget analysis and current financial terms. Also, home walkthroughs can be completed on-site with NEWSTAR’s on-location warranty module that directly integrates with the scheduling and accounting departments in case of late extras or any final adjustments for the fastest reaction time possible.
Calculating Warranty Process Savings
Homebuyer Agreements – Hours spent per home = 2 Hours
X
Number of homes built yearly = 200 Homes
X
Hourly wage = $25 Dollars
+
Hours eliminated from automated home closing entry = 1.5 Hours
X
Number of homes built yearly = 200 Homes
X
Hourly wage = $25 Dollars
TOTAL Savings Per Working Year = $10,000 + $7,500 = $17,500
The Verdict
After examining our clients and their financial performance before and after their NEWSTAR implementation. A home builder producing 200 homes yearly will save $363,625. Over the long term, the return on investment for implementing an integrated software solution comes to $1,818,125 in just 5 years. We acknowledge that all homebuilders are different and operate under many different variables. With the help of industry experts, we have created an ROI calculator to help you customize your potential revenue which is possible with software implementation. Calculate Your Savings today.