Harry Midgley from Funding For Business Network explores the options open to housebuilders seeking finance for new developments.

The recent recession was a watershed for sourcing finance as High Street banks abdicated from their role as main funders of business. Subsequently a multitude of secondary lenders filled the vacuum.

For property developers this presented both the challenge of replacing existing relationships with new funders, but also the opportunity of borrowing more on each development.

The choice of funder can greatly affect the profit retained by the developer and depends on a number of factors, including the cash available to the developer. At one extreme a developer can simply borrow 100%. This will seriously deplete the profit level, but as there has been no investment, the return on investment, however small, is excellent. Similarly, a small loan of below 50% is also not uncommon. However, the most common loan is where the developer owns the land and borrows the construction cost.

We work with over 100 funders who lend on property investment, development or bridging. Terms and conditions, the percentage of loan to value and interest rates vary a great deal. Some lenders have relatively low lending ceilings, others have high thresholds. For those unfamiliar with the landscape there can be many pitfalls.

Some lenders have relatively low lending ceilings, others have high thresholds

Successful funding

Finding a new, or suitable, funder is challenging. Doing everything yourself can also be time consuming. Using a general broker without development expertise can also be problematic – unless you work with a specialist.

Many developers opt for appointing as many brokers as they can find which is often disastrous. Funders presented with multiple applications presented in different ways are not usually sympathetic.

Full disclosure

The key is to prepare well. The information a funder needs includes:

  • An overview of the development including the planning decision number, details of any S106 payments or obligations and the Community Infrastructure Levy.
  • A financial appraisal which should include everything (this means professional fees overages sourcing fees and so on) and have a suitable contingency reserve of on the build cost.
  • An agent's view on (a) sales prospects, (b) time scales and (c) comparatives for the area.
  • Either a well-researched build cost or quotation from a reputable builder. Funders are looking for any contract to be built out by a reputable and experienced builder who will be able to ensure the 10-year warranty is available.
  • A detailed cash flow showing cumulative borrowing.
  • Information on the Directors and shareholders together with assets and liabilities and statements from the Directors who will be giving the inevitable personal guarantees.

Funders charge fees both at the start of a development and at the end. Initially there is an arrangement fee and a procurement fee paid to the broker. Sometimes there are also exit fees, but care must be taken that any exit fee is a percentage of the loan and not of the GDV.

Finally, relationships matter. Developers should not necessarily go with the cheapest options but with a funder with whom they are comfortable and one they feel they can work with.

WANT TO KNOW MORE?

HBXL Building Software are proud to be partnered with Funding for Business Network (FFBN) who provide development finance using their unique portfolio of specialist lenders who are used to working with developers of all shapes and sizes.

If you'd like to know more about how FFBN can help you obtain Development Finance, simply fill in the form below and a member of the FFBN Team will be in touch.

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By completing the form above you consent to HBXL Building Software sharing your contact details above with our trusted partner.

As featured in the May 2018 Issue of Professional Housebuilder & Property Developer

Hi James, tell us a bit more about who you are and what it is that you do?

commercial QS backgroundMainly from a commercial QS background, I consider myself quite set in my ways using my Excel spreadsheet, spending 4 to 5 days on every job which gave me a sense of confidence that the price was right using my methods. However it was a ‘Eureka!’ moment when I could see that EstimatorXpress does things very similarly to what I do but in a fraction of the time (I know it will be much faster soon as I have only just started using the software and haven’t yet started using the Quick Quote). EstimatorXpress also automatically takes into consideration things that I may overlook or may not even consider, so I thoroughly interrogated the software and because it came out in the same ballpark as I was expecting so I have a lot of confidence in the numbers.

You not only have EstimatorXpress but also the PlansXpress(a.k.a. the Rapid Take Off kit), how have you found PlansXpressby itself so far?

Well I started on a job 3 weeks ago, rather complicated including loads of different types of roofs, extensions, renovating existing structure etc. I was back and forth with Josh and Tom in the tech team to understand the best way to do it, and I’ll say it again that they are a credit to your business! They really helped me; the support structure was there the whole time.

I used to use American based CAD software before, more commercial and I had to use it in conjunction with my Excel spreadsheets. PlansXpress means I can do detailed drawings myself and I enjoy the visual side of it, it gives you a confidence that allows you to visually see what you are pricing. The 3D viewer allowed me to periodically review what I was doing as well. also, allowed us to show the customer what the end result would be. Plus it works with EstimatorXpress, so far less time spent moving things across.

I admit that it was a bit daunting at first, not because it was difficult but because it was immense.

I can’t imagine myself getting to know all of this in the space of two or three weeks. However I got to know what I needed to know in a short time which enhanced my confidence in this. I could look forward to the next stage at my own pace, learning the more advanced features whilst still being able to start using the PlansXpress in conjunction with EstimatorXpress. it will be exciting to get on it again for the next job because I now know what I have to look out for this time.

I was aware there would be a learning curve. Therefore, i set aside a good week to knuckle down to it. I spent the first half a day watching videos whilst still taking calls, then the second day using what I’d learned and starting a fresh drawing of the main property with a few more construction lines (setting them as non-estimated reference points). The third day I started the extension. After those 3 days I had to focus a bit more on work. In the evening after the little one had gone to sleep, I did a 4/5 hour shift on the software. Whilst it was late to call technical support, i emailed by questions to them and they would answer the next day. Then that evening, again after the baby was put to bed, I would then tackle PlansXpress using those answers and then send over some more queries. I always knew I would have the answers ready for me to tackle in the evening, and it worked out really well. Took me about a week to get it all marked up!

You described yourself as a self-confessed individual who’s set in their ways. What made you decide to start having a look around for estimating software?

It was a big risk to try something new, but I have really taken to this software. I wanted to be able to have some sort of lifestyle outside of work. Coming from a commercial background it is easy to spend 70 hours weeks, suddenly realising you aren’t spending any time with your family. I work 3 days a week, my wife another 3, and we look after our baby daughter.

Spending all that time on it as well, afterwards you end up going through the numbers with the surveyor and you both want to know where exactly all those numbers come from and where there is scope to handle variations. My nature is that I can’t work with vague budgets.

I did some online research and HBXL really stood out for me. After watching the Rapid Take Off and the Quick Quote demonstration videos I thought to myself that it would be fantastic if I could do something like that, churn out a lot of prices and then focus more of my time elsewhere. I checked all the different add-ons, wanting to move into a more domestic market myself. HBXL seems to me to be the market leader, I think you have ring fenced the major market for extensions, renovations and new builds. I really think that you’ve got what people need and are top of the pack by far! The larger software’s out there for commercial use are good. Though, they can’t do what you do when it comes to domestic projects.

You have really jumped into using this software with both feet.  Tailoring it in depth for your business to get the most out of it, how have you found that?

Again, I went into this aware that I had to put some initial setup into it. I have started reordering my workbooks. Also, I have thoroughly interrogated the figures, studied my pricebooks, the specifications, the mini-specs, the whole lot.

With EstimatorXpress I can adjust my profit margins and I can also value engineer the materials, the software allows me to go into that level of detail that gives me full control.

I am a bit of an excitable kid at the moment. Currently, I am taking roughly 2 to 3 days to complete a job. Potentially, in a month I will be able to do this in about a day. I got my generic schedule of rates from my  roofing supplier and my civil supplier (such as roof tiles and drainage). This will help me create more specs to my liking. Also Yorkshire stone, which we use a lot of where we are, things like that build up my price books and allow for what I come across often. The saying stands, you have got to put good in to get good out!

If you can think of any way that we can improve the software do let us know. We rely on customer feedback to improve our software and their experience. It’s one of the reasons why we offer free uncapped software support and updates for the first free 12 months.

Absolutely! I read that HBXL pump about 25% of their revenue back into software developmentso I know I have bought something that is going to evolve and grow with the market, and I feel valued as a customer because I can make notes and send them over. Suggestions to make my estimating easier, help HBXL improve its software, and my recommendations will be given serious consideration.

So what do you have planned next James?

Using HBXL has actually gotten my wife (a.k.a. eBay selling Queen) thinking about joining me! She doesn’t have any experience directly in the construction industry. However, she has had a look through the HBXL software and is impressed. We also have the ContractsXpert, which provides fair contracts that don’t just protect us but also the customer. I have been in construction for about 20 years; this is the first time I have really gotten excited about something. Depending on the future and what direction we decide to take, we will 100% be looking at the Health & Safety Xpert as well because too few realise how much liability and responsibility there is on site to ensure that an accident doesn’t happen, and what to do if they unavoidably do.

However now it is time for me to head off to go watch the rugby. It’s been good talking to you.

And you James, have a super weekend!

The Corporate LiveWire Innovation & Excellence Awards 2018 recognises businesses transforming their respective industries and the standard-bearers of excellence by continually setting industry trends as well as showing significant advances in terms of innovation and improvement.

The judges at Corporate LiveWire have chosen winners who have had a positive effect on their industry, taking into account innovation, industry recognition, service excellence, marketing and branding.

HBXL Building Software provide a range of software solutions to enable building firms to quickly produce professional, transparent and accurate quotations, building plans, health & safety documents and building contracts. The company has been developing software for 18 years in the UK and is a leader in its field.

Adrian Wild, Managing Director said: “I’m really pleased HBXL has been awarded the ‘Construction Software Provider’ Award. It recognises the innovative approach we’re taking to improving business bottom line for SME construction firms – an industry not known for embracing technology.”

For more information on HBXL Building Software contact 0117 916 7898 or visit www.hbxl.co.uk

EstimatorXpress 2018 Spring update is here! The award-winning estimating software being used by builders across the UK, has had its latest update. Users know that every few months there will be an update, from fixes to feature additions. And for the start of May 2018 the software has undergone some clever changes that improve the usability of the software still further.

The big news…

Where do we begin? There are new and updated workbooks including a USB electrical sockets and a new Velux window Workbook and picker – we’re talking 500+ windows!!

  • The Electrical Sockets Workbook has been updated including the addition of USB sockets
  • New Velux Window Workbook (includes Velux Window picker to allow the user to choose from over 500 Velux windows like you can for Crystal doors and windows)

  • The new Velux workbook has been added to Quick Quote
  • Quote enhancement – you can now enter assumptions and omissions, as well as provisional sums, and merge them into the quote in a new section.

And there’s more…

Plus some really clever tweaks and additions that will speed things up and give added value to your quoting.

  • Spec updates for reinforcement in slabs
  • New brickwork mini-specs
  • Updated groups of workbooks
  • Traffic lights on Main Menu only go red if expired (rather than < 1 month remaining)
  • Part L Floor Screed has been added to Quick Quote custom
  • Character limit removed from ‘Location’ of a worksheet ‘
  • My Favourites’ no longer swaps to products if you’re not in the price book

And of course, all the necessary fixes to make the estimating experience smooth running.

Remember, the easiest and most cost effective way to benefit from all the new features in our updates as and when they come out is to ensure you have your Support & Updates already in place. We provide discounts for those who renew their Support & Updates before the year is up or before their version gets too far behind. If your Support and Updates package has expired you can renew here and if the software needs updating then go here. To find out more and to get clarification if need be, give the accounts team a call on 0117 9167892.

If you already have your Support & Updates in place, then you can look forward to updating to the latest version. Enjoy!

As featured in April 2018 Issue of Professional Builder.

Read our tips below…

For business owners who prefer being ‘on the tools’ – standing knee deep in mud in all weathers (in fact anything) – is better than wading through office paperwork and grappling with admin.

So what construction business owner could plan a day like this one let alone get the list done without breaking a sweat? HBXL Building Software believe this is all in a day’s work for one of their users.

Their full suite provides an end-to-end solution, using the same data throughout the whole project, and has been designed specifically for builders not IT graduates. It doesn’t require an extensive payroll; the computer and a printer are your friends…

Five jobs builders should be doing in the office – easily

  1. Producing professional, accurate estimates

EstimatorXpress gives you the choice of detailed, bespoke estimating, or with the Quick Quote plug-in, an equally comprehensive estimate in under half an hour using one of the hundreds of pre-configured templates for lean-tos, garages, extensions, renovations and new builds.

  1. Effectively managing labour, plant and materials

You automatically get 80+ reports with every estimate. This includes Cutting Lists and Order Reports for the Builders’ Merchant, a Labour Schedule, and full colour Build Program to make sure contractors, deliveries and plant are where they need to be. And if you’ve multiple projects you can import all your estimates into ProjectXpert for a full overview of where everyone and everything need to be. Unexpected change? One click and you can see the implications across all the jobs.

  1. Staying on top of the costs

Want to check your cash flow position? Want to run through a project with the bank? EstimatorXpress will automatically give you detailed cost reports by build phase and resource type, stage payment schedules, profit forecast, and an invoice generator.

  1. Generating customer contracts

Essential if you want to be paid, whether you’re worried about cowboy customers or not. Import your

EstimatorXpress data into ContractsXpert and it will provide a letter, Small Works Contract, Consumer Contract, Subcontract, Start Work Now Form, Notice of the Right To Cancel, Cancellation Form and Change of Works Form. And all the paperwork ensures you’re complying with CDM 2015.

  1. Overseeing health and safety

Keeping everyone safe and avoiding fines and fees are obviously essential. And it needn’t be problematic. You simply import your data from your EstimatorXpress estimate into Health & Safety Xpert for a pre-construction information document, construction phase health and safety plan, health and safety file, risk assessments, COSHH assessments, company health and safety policy, method statement, permits to workand loads more documents, specific to the actual project (not every form the software contains). 

It’s the number-crunching, form filling and letter writing that wins the work and determines whether you make money or a loss. According to HBXL the good news is you don’t need a business degree or the patience of a saint to quickly and easily carry out everything on the list.

And to complete the suite, there’s PlansXpress which, when combined with EstimatorXpress, makes take-offs and costing a doddle. Of course you could bring drawing from scratch into the office too…

Please note that all the software products can be purchased individually as well. For further information contact the team on 0117 916 7898 or email hello@hbxl.co.uk.

As featured in April 2018 Issue of Professional Builder.

Are you talking enough to everyone on site about health & safety?

Do you make sure everyone is fully aware of the hazards on site each day? What about when a new piece of kit arrives on site? Or when you reach a particularly hazardous stage in the build?

Do you explain what measures are being put in place to ensure everyone’s safety? Do you check that everyone understands their role in ensuring their safety and everyone around them? Do they know what to do to avoid accidents? Most importantly, are you keeping health and safety at the front of everyone’s minds?

If you can say yes, and are already giving your team safety briefings, that’s great. If you’re not then you need to start now. And rather than having to talk off the top of your head, or search the internet for relevant documents, we’re pleased to say that the new Health & Safety Xpert 2018 edition will come with over 60 valuable Toolbox Talk documents, recommended by our NEBOSH accredited Health & Safety Consultant, in line with what CITB and the HSE encourage.

Alongside the Toolbox Talks Health & Safety Xpert has all the documents to keep you in line with the latest regulations and CDM 2015 compliant: Risk and COSHH Assessments, Company Health & Safety Policy, Method Statements, Pre-Construction Info, Construction Phase Health & Safety Plans, Health & Safety File, Site Inspections and more, including 35+ Management documents! Take a look at our Health & Safety Xpert gallery to see a range of sample reports.

What is a Toolbox Talk?

Essentially, each ‘toolbox talk’ is a short presentation to the workforce on a single aspect of health and safety, and takes place before a specific task is going to be carried out. Each one is designed to heighten awareness.

And even if there isn’t anything out of the ordinary happening that day you should still use one or more of the Toolbox Talks on a daily basis to promote a culture of health and safety, to prompt a discussion between you all, run through emergency procedures, explore the risks and think about ways of dealing with them.

Of course they don’t replace health and safety training, but they’re a good reminder and effectively there to reinforce what your workforce should know already. 10-15 minutes well spent.

How do you use a Toolbox Talk?

  1. Simply print the document off (it’s probably worth have a read through beforehand).
  2. If it relates to a piece of equipment, then have it to hand
  3. Choose a quiet spot on site where there aren’t any distractions so that everyone can concentrate for those few minutes.
  4. Read it out to everyone.
  5. Use the prop to demonstrate your points either during or after the talk. For instance if the talk is on abrasive wheels, show the grinder and point to the relevant safety features
  6. Open it up for discussion, encourage questions – however basic they might be.
  7. Make a note of the date of the talk, the subject and who was in attendance. It’s good protocol and proof if needed for the HSE. Please note, Health & Safety Xpert provides a Toolbox Talks Register for recording who’s received what talk.

Make the Toolbox Talk part of the daily routine, and alongside the briefing, you could take the opportunity with everyone gathered round, to run through any housekeeping matters or issues with the job, be they material hold-ups, or changes to the plans.

How does Health & Safety Xpert help?

Anyone familiar with the Health & Safety Xpert software will know that it automatically identifies the risks a particular project faces. And now, as well as helping your business comply with CDM 2015, singling out all the risk and COSHH assessments, method statements and policiesassociated with the project, software users will also now be given the relevant Toolbox talk documents to read out to the workforce at the appropriate points in the job.

To see where the Toolbox Talks sit within the process of managing health and safety, as per the HSE’s ‘Managing for Health & Safety’ (HSG65) document, take a look at our guide. This useful pdf file matches the documents with the four stages within HSG65, ‘Plan, Do, Check, Act’. Anything you don’t understand, just talk to one of our team.

Are Toolbox Talks required by law?

As an employer you have a legal duty of care to everyone on site to make sure they are working safely without any risk to their health. It’s important to give them the right information and the right instructions to ensure they’re sufficiently competent to carry out the work.

What other actions should you be taking?

TRAINING As well as providing information that is easy to understand and instructions that are simple to follow, you also need to provide adequate health and safety training – during work hours – and made available without charge. (It’s something HBXL can help with by the way! See here.)

SUPERVISING This is particularly important if your workforce includes young workers, inexperienced people and anyone new to the site. You need to consider the level of supervision appropriate to the individual.

LEADING BY EXAMPLE! Of course you have to practice what you preach. Violating the rules yourself isn’t going to help you get the workforce on side.

Here’s the full list of HBXL’s Toolbox Talks

Health and Safety at work Act 1974
Powers of the HSE
Inspections and consultation
Legal duties of employees
General safety legislation
Benefits of health and safety
Accident prevention and control
Accident reporting and investigation
Young persons on site
Risk assessments and method statements
COSHH
Health on site
Weils disease
Alcohol and drugs
Needlestick injuries
First aid
Personal Hygiene
Personal Protective Equipment (PPE)
Control of noise
Pollution control
Protection of eyes
Protection of skin
Sun safety
Safe stacking of materials
Slips, trips and falls
Hoists and hoist towers
Ladders
Mobile scaffold towers
Mobile elevating work platforms (MEWP’s)
Mobile plant
Safety nets and suspension equipment
Work over or near water
Abrasive wheels
Cartridge operated tools
Chainsaws
Portable hand-held electric tools
Lifting appliances
Lifting accessories
Plant and equipment
Site transport
Security on site
Asbestos
Buried services
Dust and fumes
Electricity on site
Excavations
Fire prevention and control
Highly flammable liquids (HFL’s) and petroleum based adhesives
LPG and other gases
Lead hazards
Safety in demolition
Hydro Demolition
Water jetting
Piling
Working in a confined space
Roads and street works
Waste management
Vehicle fuels
Competence
Hand arm vibration
Work at height
Working on scaffolds (coming in April 2018 update)
Woodworking machines (coming in April 2018 update)
Overhead services (coming in April 2018 update)
Temporary works (coming in April 2018 update)
Slingers and signalers (coming in April 2018 update)
Invasive plants (coming in April 2018 update)
Trees and hedgerows (coming in April 2018 update)
Safety signs  (coming in April 2018 update)
Company health and safety policies (coming in April 2018 update)

Health & Safety Xpert is your go-to software for all things safety related. The software is regularly checked, and any new legislation is quickly added – what builder has got time to do that themselves? And with more builders, contractors and trade sub-contractors using Health & Safety than any other health & safety software, you know you’re in safe hands.

If you have the software already, then make sure your Support & Updates is valid, in order to get your software updated to Health & Safety Xpert 2018 60+ Toolbox Talk documents . And if you’re yet to buy the software, can we point you in the direction of a free test drive, or may be straight to the shop! It’s great value and can be learnt in a matter of minutes. Or give us a call on 0117 916 7898. Let’s talk!Health & Safety Xpert

 

 

 

 

Well there’s a good chance you’re charging 15% LESS than you could be. Heart-sinking thought? You may imagine your price is right yet your competitors can charge more AND win the work. Take a look at the following true stories from our partners Better Business Group.

Then look at the special FREE OFFER at the bottom to find out what your customers really think of you!! (It’s a limited opportunity so don’t hang around!).

A builder in Slough…

He specialised in loft conversions and insisted he couldn’t charge any more than £32,000 + VAT because of the large number of non-VAT registered cheap builders in his patch. He was doing about 20 jobs a year.

 Better Business Group started working with him on all of his enquiries, proving to his prospective customers how good he was and carrying out free credit check on his competitors.

 A year later, with their support he was able to charge £40,000 + VAT and was undertaking 25 lofts a year. He’s since taken on more teams, relocated his offices and started taking advantage of leads from Better Business Group.

A builder in Birmingham…

A disillusioned builder was thinking of quitting having reached the point where he was charging less than he was five years previously. Customers were telling him he was too expensive, but on investigation, Better Business Group discovered that the opposite was true.

 Customers found it easier to say he was too expensive than what they really felt – that he was too cheap and wouldn’t be able to do the work properly for the money he was quoting.

 At the time of writing, with the help of Better Business Group he has 10 months worth of work on the books, and is charging 28% more than he was two years ago.

Makes you think doesn’t it? You could be charging less than you need to and for all the wrong reasons.

  • Deciding to price ‘your first job’ at a reduced price for a new customer could be a false economy
  • Thinking that a referral means you need to charge the same (reduced price) is another false economy
  • Settling on a figure that you think is the ‘going rate’ is well…

We partnered with the Better Business Group because they have been working with builders for well over 20 years and they really understand the market and homeowner psyche. The team can help businesses charge 15% more – and convert more work – on average 13% more.

So what are they doing to make this a reality? Well for starters taking the speculation out of the process! They analyse your business, they speak to your customers, they investigate your competitors, and they go on to provide an ongoing mentoring service.

Free Customer Review!

What do your customers really think? Are you expensive/cheap? Professional… or not! You might be surprised by the good news (and the not so good news…).

Simply give us the name, address and postcode of six completed projects, and The Better Business Group will send them a survey questionnaire (plus a reply paid envelope for return) asking various questions about the service they received. They will then analyse the findings and come back to you with a Report. There are no strings attached, no commitments at all.

Worth finding out more? Complete the form at the bottom of the page here for more info on The Better Business Group – and tick the box if you’re interested in the FREE CUSTOMER REVIEW. It’s a limited offer so act now!

If you’ve got any questions, give the team a call on 0117 916 7898 and don’t forget a quick route to accurate estimating starts with EstimatorXpress, so why not request a free test drive.

Here’s a snapshot of reactions from our own research and forums and articles across the internet on the subject of building quotes and whether it is OK to charge the customer for them. We haven’t come across a recommendation from the FMB or a suggestion for homeowners by the consumer magazine Which! And that’s no surprise really as there are so many variables to be taken into account.

“We charge £50 for refurbishment quotes on properties that customers are looking to put an offer on. They’re after an expert opinion and may not even go on to buy the property. So that is definitely chargeable. And £50 is nothing really. They’ll spend a lot more on a Surveyor.”

“We charge for a detailed breakdown of materials, labour, timescales etc, especially if the job is non-standard; but a quick wander round and a cursory “that’ll be about a ten grand” isn’t chargeable.”

“If a developer hasn’t purchased the land yet and wants a price for two new builds, accurate to within 10%, I would charge £600+VAT. And would send an example of a previous quote to give them an idea of the level of detail they would receive.”

“I think customers are prepared to spend a couple of hundred quid on a well prepared detailed quote that will be refunded if we get the job. And if we don’t get the job the customer has a proper quote to use as a benchmark for other builders. It’s money well spent.”

“If a customer wants me to email a quote without even meeting to discuss the project then I believe they’re just fishing for prices and aren’t taking me seriously. They should want to meet me and discuss the job in person. I don’t even have to think about whether I’ll charge for the quote – I just won’t even get involved.”

“I always ask how many building firms the customer is requesting a quote from. If they say 10 or more then I won’t put my hat in the ring, it’s not worth the effort and cost of producing the quote.”

“If a customer is prepared to pay an estimating service for a detailed quote, they should be prepared to spend similar money when a building firm quotes. Not for a guesstimate of course, but if it’s comprehensive and full of detail.”

“It’s really competitive out there. The last thing I can afford to do is risk annoying a prospect with a bill. I’ll take my chances, quote for free and hope I win the work based on my professionalism and honesty.”

Easy-to-use estimating software

In our experience builders who are giving a quick benchmark estimate are very unlikely to charge for this service. And even builders who are providing a full and comprehensive quote with all the materials itemized are loathe to charge if there’s a chance they might upset the customer and lose the chance to quote at all. It’s the time wasters that most builders get fed up with.

Estimate WizardEstimatorXpress, our award-winning estimating software, provides the user with the opportunity to add a profit margin and also include any extras, such as the time it takes to quote. These costs can be absorbed into the overall cost, so the building firm is accurately accounting for its time.

If the job isn’t won, (although 230% more jobs are won using EstimatorXpress!) at least the clever, easy-to-use software has made the quote submission a quick and painless process – and it’s on to the next one! Many look on the quoting process as an investment in the business.

In fact past quotes can be used as the basis for new quotes if the fundamentals are the same, so there is always something to be gained from every estimate completed.

In that way you can choose whether you want to charge for the quote or not…safe in the knowledge that you’ve hugely reduced your time costs (so charging for the quote is probably immaterial).

Protect your time with high quality leads

It’s important to QUALIFY your prospective clients. If you handle your enquiries correctly it should protect your time and let’s your potential client know how you do business. Handling them incorrectly gives them the opportunity to waste your time by requesting a free quote when they’re not serious. As mentioned above a verbal or one liner letter or email “it’ll be in the order of” is one thing, but if you take the time do a full itemisation, you are within your rights to charge. Furthermore before you do the estimate, tell your clients that you DON’T simply email them or post them the quote, that you’ll set up a meeting to run through with it, so they buy into YOU – that’s if you want the job…and they are serious about you doing the job!

Free no-obligation estimate

So what about a “free no-obligation estimate” that is a popular advertising message? There is a big difference between an estimate and a detailed cost breakdown provided as a professional service as mentioned above. Most clients would pay for a Quantity Surveyor service, so if you know you have a big project to price up, having been asked to tender then consider charging…A QS wouldn’t work for free would he…?

And finally, here’s what the Australian Builders Coach has to say…

“If you want their business, inform them that when you go to the time and effort of compiling a quote, you want to sit down with them to review the proposal and ask/answer any questions they might have. Is this ballsy? Is it rude? No, it’s setting the standard under which you are willing to work. Remember if you don’t set it, the prospective client will. The prospect is either at the mercy of your process for selling or you’re at the mercy for their process for buying. It’s your time to do with as you will, but why let some inconsiderate knucklehead waste your time? You must learn to guard your time as you would your life, and insist that others respect your time. That way you can focus on the clients you can do business with, not the clients who want to waste your time.”

To discuss how EstimatorXpress arrives at its calculations, give the team a call on 0117 916 7898. They’d be happy to set you up with a free test drive as well. 

Rapid Take-off & Estimate Kit Software Skills Remote Training courses

At HBXL, we are committed to our users from the word go. You can check out our Support Promise to find out more. We’re not satisfied to send you the software and let it sit on your desk somewhere gathering dust. We want to make sure all our users are getting the most out of our software from day dot.

Free Rapid Take-off & Estimate Kit Training!

That’s why everybody who purchases is entitled to a course of free, live, training sessions via the internet, should they need it. The sessions are designed for new users to get to grips with the software, helping them establish essential software skills so they are up and running in no time!

How does it work?

The course compromises of four modules of 1.5 hours of teaching followed by 30 minutes of Question and Answers. It is run by our knowledgeable Help Content Author, Olivia Woodhams and at the end of the course you will receive an Rapid Take-off & Estimate Kit Software Skills certificate of attendance. Who doesn’t like a certificate….!? But seriously it is a sign of quality you can add to your plans estimates.

Is it any good?

We have had rave reviews from those that have completed our EstimatorXpress Software Skills course with a 100% satisfaction rating since we launched the courses in early 2016. All of our attendees have said they have a solid understanding of the software and how to get the most out of it as well as praising the delivery for being clear, concise and at a pace that allows the user to easily follow along.

“It was perfect for what it was intended” “Keep up the good work”

We hope that our Rapid Take-off & Estimate Kit Course will have the same great reviews.

Sign up today

If you are interested in purchasing the software and signing up for the free Rapid Take-off & Estimate Kit Software Skills Remote Training course then follow the links or give us a call on 0117 916 7898 or drop us an email.

Already a user? Interested in signing up for the free Rapid Take-off & Estimate Kit Software Skills Remote Training course then follow the links or give us a call on 0117 916 7892 or drop us an email.

Other resources

The Rapid Take-off & Estimate Kit Software Skills Remote Training courses are just one of the many ways in which the HBXL Support Team make sure that our users are benefiting from all the ways in which the software can help their building firms.

Obviously they are at the end of the phone, email or chat service 8 hours a day, 5 days a week (Mon-Fri 9-5). On top of this they produce all the how-to-videosFAQsuser guides and much, much more. Find out what a typical day in the life of our Support Super heroes involves here.

The housing shortage is being talked about up and down the country from Westminster to the corner shop.

Adrian Wild, founder and Managing Director of HBXL, and ex builder and developer of many years, is a well known advocate for small builders in the UK. Here he considers the grand plans people have for small firms to help combat the shortage of new homes:

Many commentators have identified the role small building firms could play in solving the crisis. Mike Cherry from the Federation of Small Businesses has said; “Small builders are the best avenue to turbo charge immediate action to solving the UK housing crisis.” Whilst Richard Beresford, chief executive of the NFB, said; “With SMEs accounting for 98% of construction companies, the panel should better reflect the make-up of the industry.”

The Government has suggested that SMEs could build around 25000 new homes per year. This would require 5000 small builders, building five houses each per annum.

That would be wonderful, but in my view, this will never happen unless something changes. There are some significant issues that are preventing small building firms from contributing in a meaningful way:

1. Finance

Builders are busy working on home extensions, renovations and re-configuring existing houses into apartments. They have little choice.

Upgrading existing properties is something that smaller builders can readily do as the cash outlay is within sensible boundaries. Banks can secure loans on the existing property so lending is relatively easy.

But asking a small business to fund a project involving several houses in say the South East, is another matter entirely.

House prices in the South East, outside of London, are around £4-500K. Land for say a five-house site is likely to cost in excess of £1M.

The bank may allow two properties to be built before on-selling. So the combined cost of land and build along with all the fees will be in excess of £1.5M. The bank may lend around 60-65% of that, so the builder will have to find the remaining 35% from his own funds… around £500K.

And that’s a large sum of money for any small business to find, which will mean in all probability they will need to find other financial backers.

2. Economic climate

Costs can rise during the often protracted process of getting planning etc. and house prices can fall if the market turns, leaving the builders very exposed. Many small developers were wiped out in the last crash, and there are concerns that the market could turn again given the various economic uncertainties. Still worth taking the plunge?

3. Land

Of course our small building firm will be lucky to find a suitable site even if they can raise the funds. 5000 smaller sites per year are unlikely to exist in reality as most “infill” sites and small addendums to villages have already been developed.

And anyway, planning permission becomes harder to come by as the size of the site increases, what with the problem of road links, amenities and so on.

4. Labour

From a production point of view many builders, particularly in the South East, are reliant on migrant workers, and a relatively large number we understand, are returning home because of the falling pound. This situation is compounding the already gaping skills gap. Which brings me on to apprentices and training, and the need for a much greater take-up to ensure the industry has the builders needed for the future.

The solution?

In my view a different strategy is required to provide large swathes of development land required for 125000 homes over the next five years.

One site – lots of small businesses

The Government should provide/fund large sites dedicated to small builder/developers, perhaps in association with ‘self and custom-build’ sites, or certainly along similar lines.

All the infrastructure including roads, services and amenities would be handled separately, so the small builder could focus on building the houses. Planning would be a foregone conclusion – the design would just need rubber-stamping.

And Government could profit from stamp duty and rates on completion.

Skilled entrepreneurs

It takes a brave small builder to start up and run a development. Mentors and coaches would be hugely beneficial to hone the many skills required to navigate the complex process.

Just as the Hinkley Point C project has resulted in FE colleges partnering to provide the necessary skills, or the nationwide campuses supporting the new High Speed Rail, the same thinking should be applied to housing.

Where there are large tranches of land, local colleges could provide the skills and training – for those on and off the tools. We’re starting to hear of instances where this is happening, but the lack of meaningful projects means there are very few.

Next step

As a construction software company dedicated to the smaller building firm, we talk to business owners up and down the UK day in day out, and obviously we work hard to give them the ‘admin’ tools to carry out their work profitably and safely. In those conversations we’ve discovered many would relish the opportunity to get their teeth stuck into larger developments, but the obstacles are too many, the barriers too high. Basically the odds are stacked against them.

The thousands of small builders desperately need to be heard. The Government’s Housing White Paper is becoming a dim and distant memory. I would be very interested to hear from others who also believe real action is required in order to get ‘Britain’s Smaller Builders Building’.

Contact me at: adrian@hbxl.co.uk

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