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Avoiding Scope Creep in Construction: Tips and Strategies

Scope creep can be a nightmare for anyone in the construction industry. It can lead to financial loss, reduced profitability, time delays, and even strain relationships between builders and customers. In a recent episode of the "Feed Me Your Construction Content" podcast, Carolyn and Joshua McMahon share their insights and personal experiences on how to avoid scope creep and run a profitable business.

One of the main takeaways from their discussion is the importance of setting clear expectations and adding time and cost to the contract when necessary. They stress the need to be transparent and avoid giving away additional services that can result in a financial burden for the builder. Carolyn and Joshua also highlight the impact of scope creep on resource allocation and planning coordination, and the need to be respectful and communicate with trades about their availability and the impact of any changes on their schedule.

Another key point they make is the need to have a clearly defined change order process in the contract. Carolyn emphasizes the importance of avoiding being selfish and thinking about how changes affect everyone involved, while Joshua shares a personal experience where a customer kept pushing for changes even after paying for change order fees. They both stress the need to carefully consider the impact of scope creep on the project and to communicate the change order process early and often to avoid difficult situations.

Lastly, Carolyn and Joshua discuss the importance of upholding construction standards and guidelines during the warranty period, and avoiding giving away things in the field that can create an environment where entitlement is expected, leading to further scope creep.

In conclusion, avoiding scope creep is essential to run a successful and profitable construction project. Carolyn and Joshua's tips and strategies can help builders and contractors navigate this challenge and maintain healthy relationships with their customers and trades. So, next time you're faced with a potential scope creep situation, ask yourself, "is the juice worth the squeeze?" and take action to prevent it.

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Carolyn can be found on LinkedIn at:
https://www.linkedin.com/in/carolyn-mcmahon-937b89158
Joshua can be found on LinkedIn at:
www.linkedin.com/in/joshuamcmahon15
Email for feedback, questions, complaints, etc:
[email protected]

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5 Key Takeaways on Contracts in the Construction Industry

Contracts are an essential part of any construction project, and it's crucial to understand their terms and conditions to avoid misunderstandings and disputes. Here are five key takeaways from the recent podcast episode on contracts in the construction industry:

1. Read and understand the contract: Contracts are legally binding agreements between two parties, and it's essential to read and understand their terms and conditions. Failure to do so can lead to disputes and legal action.
2. Follow the details of the contract: Contracts protect both parties and outline the budget, timeline, and scope of work. It's crucial to adhere to them to avoid disputes and misunderstandings.
3. Communication is key: Communication between parties should be put in writing and become a part of the contract to be valid. It's essential to have clear expectations and guidelines to avoid conflicts.
4. Change orders are critical: Change orders can cause delays in payment and should have a defined process for handling them. It's important to have clear and defined terms in the contract regarding change orders.
5. Document everything: Daily logs should document delays, and any changes to the contract should be documented in a change order. It's crucial to approach the job with a focus on following the contract to avoid any potential legal issues.

In conclusion, contracts are crucial for any construction project to run smoothly and avoid conflicts. By following the terms of the contract, communicating clearly, and documenting everything, both parties can ensure a successful project and a satisfied customer.

Contracts, construction industry, reading contracts, understanding contracts, legal agreement, homeowner, contractor, misunderstandings, disputes, due diligence, communication, warranties, warranty cost, customer expectations, change orders, project delays, completion, timelines, documenting delays, daily log, commercial construction, legal issues.

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Carolyn can be found on LinkedIn at:
https://www.linkedin.com/in/carolyn-mcmahon-937b89158
Joshua can be found on LinkedIn at:
www.linkedin.com/in/joshuamcmahon15
Email for feedback, questions, complaints, etc:
[email protected]

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We appreciate any and all feedback so feel free to send a text.

In this podcast episode of "Feed Me Your Construction Content," hosts Carolyn and Joshua McMahon discuss their personal construction project and the process of bidding and buying out the project. They provide valuable insights into identifying needs versus wants, making smart choices to stay within budget, and being proactive and detail-oriented during the buyout phase. They also discuss the challenges of balancing custom requests with production building and stress the importance of communication and transparency in the bidding and buying process to ensure a successful project within budget. Despite the challenges of balancing their full-time jobs with the demands of the construction project, Carolyn and Joshua remain committed to making progress each week.

#construction #homebuilding #homebuilder #projectmanagement #success

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Carolyn can be found on LinkedIn at:
https://www.linkedin.com/in/carolyn-mcmahon-937b89158
Joshua can be found on LinkedIn at:
www.linkedin.com/in/joshuamcmahon15
Email for feedback, questions, complaints, etc:
[email protected]

Daily Journal: https://amzn.to/41p9aKE

We appreciate any and all feedback so feel free to send a text.

Hey there, it's Joshua here, and today we have an incredible guest on the show! Say hello to Frank Lackman, the president of Cornerstone Homes, a top-notch Richmond-based boutique builder specializing in 55-plus communities.

Let me tell you why Frank is such a game-changer for me and my career. Before I met him, I was all about the hustle. No time for reports, data, or numbers—I was the running-and-gunning, slinging-it type. I'd drive a thousand miles a week, inspect every house, and get things done my way.

But then Frank came along and dropped a wisdom bomb on me. He said, "Joshua, you need to read those reports. Trust the numbers. And then go out into the field and verify their accuracy. Trust, but verify." 📊✅

And you know what? That changed everything. It accelerated my career like nothing else. Frank taught me the power of combining data-driven insights with on-the-ground reality checks. It's a winning formula that has tremendously impacted my professional journey.

But here's the kicker—Frank's influence didn't stop there. He played a crucial role in bringing me back into the building business. When I was laid off and in survival mode during the recession, I ventured into the commercial sector. But with Frank's guidance, I found my way back and started working for someone else, reigniting my passion for construction.

Join us in this captivating episode as we delve into the lessons Frank imparted, the secrets behind Cornerstone Homes' success, and how he became an integral part of my comeback story. You won't want to miss this! Tune in now! 🎧

#construction #55plusbuilder #ageinplace #cornerstonehomes #homebuilder

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Carolyn can be found on LinkedIn at:
https://www.linkedin.com/in/carolyn-mcmahon-937b89158
Joshua can be found on LinkedIn at:
www.linkedin.com/in/joshuamcmahon15
Email for feedback, questions, complaints, etc:
[email protected]

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We appreciate any and all feedback so feel free to send a text.

Hey everyone,

Are you aware of the credit bureaus TransUnion, Experian, and Equifax, and some of the issues they faced in the past that could have affected people's credit scores? In this episode of "Feed Me Your Construction Content" podcast, we discuss the importance of having a trusted partner to guide you in making credit decisions and filing taxes, especially for self-employed individuals.

Our guest, William, explains how the credit bureaus were violating the Fair Credit Reporting Act by relying on a third-party service, Lexus Nexus, to pull public records and throw judgments and public records on credit reports. This caused inaccuracies in credit reports, which could have affected people's credit scores. He also mentions that none of the localities report their data to the credit bureaus directly because they charge fees. As a result, the credit bureaus had to drop the practice of including judgments in credit reports. This led to a sudden increase in credit scores for many people.

We also discuss the process of getting a mortgage for self-employed individuals. William advises that it's good to start six to 12 months before your goal if your goal is to start building a house. He also suggests that it's a good idea to do it before you file your taxes in the current tax year. William explains that the IRS tax code allows a person to file amended tax returns in the subsequent tax year to correct where they did not take certain deductions. However, he advises that it's important to put that far enough out that it's about a year later to avoid raising any red flags for the IRS.

We also talk about the importance of good document control when it comes to taxes. Joshua and Carolyn stress the importance of having a good relationship with a tax professional and a lender. They also suggest that people should start the loan process early to avoid any last-minute issues.

Overall, the episode highlights the importance of being organized and having a trusted partner to guide you through the loan process. If you want to learn more about the loan process and how to prepare for it, I highly recommend listening to this episode.

As William says, "Preparation over pre-qualification." So, what are you waiting for? Tune in now to learn more!

Best regards,

Carolyn McMahon

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Carolyn can be found on LinkedIn at:
https://www.linkedin.com/in/carolyn-mcmahon-937b89158
Joshua can be found on LinkedIn at:
www.linkedin.com/in/joshuamcmahon15
Email for feedback, questions, complaints, etc:
[email protected]

Daily Journal: https://amzn.to/41p9aKE

We appreciate any and all feedback so feel free to send a text.

In this podcast episode, hosts Joshua and Carolyn McMahon discuss the process of buying land, obtaining a construction loan, and building a dream home with their guest, William Hendrix. They highlight the challenges of getting a construction loan as a DIY builder and the importance of partnering with people to meet the needs of clients. The episode emphasizes the importance of finding the right partners and resources to make the dream of building a home a reality. They also discuss the process of qualifying for a mortgage and the importance of seeking professional guidance when it comes to managing finances and credit scores.

William Hendricks can be found at the following links:

LinkedIn: https://www.linkedin.com/in/williamhendricks
Instagram: whendricksihmc
Website: ihmcloans.com
Phone: 804-502-5344
Email: [email protected]

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Carolyn can be found on LinkedIn at:
https://www.linkedin.com/in/carolyn-mcmahon-937b89158
Joshua can be found on LinkedIn at:
www.linkedin.com/in/joshuamcmahon15
Email for feedback, questions, complaints, etc:
[email protected]

Daily Journal: https://amzn.to/41p9aKE

We appreciate any and all feedback so feel free to send a text.

In this podcast episode, the hosts of "Feed Me Your Construction Content" discuss updates on their construction project, including becoming landowners, obtaining a construction loan, and working on obtaining permits. They also discuss the challenges of working on the project while holding a full-time job and the importance of doing due diligence in checking details in their estimates and plans. Additionally, they discuss their decision-making process for choosing windows, struggles with design, and the importance of having a well-designed kitchen and bathroom. The hosts also share their excitement about upcoming guests on their podcast, including Frank Lackman, Christopher Brement, and Brad Haubert.

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Carolyn can be found on LinkedIn at:
https://www.linkedin.com/in/carolyn-mcmahon-937b89158
Joshua can be found on LinkedIn at:
www.linkedin.com/in/joshuamcmahon15
Email for feedback, questions, complaints, etc:
[email protected]

Daily Journal: https://amzn.to/41p9aKE

We appreciate any and all feedback so feel free to send a text.

The podcast episode discusses the challenges and issues facing employers and employees in the construction industry regarding job recruiting and hiring practices. The hosts are joined by a recruiter, Luke Ha, who shares his insights on how employers can address gaps in their employees' skills and provide opportunities for growth and development. The discussion highlights the need for better hiring and retention practices in the construction industry, and the importance of supporting employees as they grow and develop in their careers. The episode emphasizes the need for honesty, transparency, and mentorship in the hiring and retention process.

Luke Hill can be found on LinkedIn at: https://www.linkedin.com/in/lukehillconstructionrecruiter

He is the CO-Host of Off the Hook with Erica and Luke and they can be found at: https://www.linkedin.com/showcase/off-the-hook-with-erica-and-luke/

#hiring #coaching #recruiting 

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Carolyn can be found on LinkedIn at:
https://www.linkedin.com/in/carolyn-mcmahon-937b89158
Joshua can be found on LinkedIn at:
www.linkedin.com/in/joshuamcmahon15
Email for feedback, questions, complaints, etc:
[email protected]

Daily Journal: https://amzn.to/41p9aKE

We appreciate any and all feedback so feel free to send a text.

Introduction: Deciding whether to self-build a home in 2023. Brad Haubert asked the question after last week's episode, and it was simple, why now? 

To answer this question, it is only fair to list some of the reasons not to self-build a home.

1. Interest rates are elevated
2. Stress is going to be challenging to manage
3. Cost of construction
4. Financing the deal
5. The time commitment
6. Lack of expertise

Why now? We have given you the reasons to not self-build or start a homebuilding business, so what are we thinking? 

1. If we wait for everything to be perfect, we will never step out and make our dreams real. 
   1. Interest rates are outside of our control
   2. If we wait for rates to come down, material or labor will be more expensive
   3. Scared money doesn’t make money
2. Finances
   1. We have been strategic with our earnings over the last 5 years and are financially in a position where we can make this step. 
   2. We are being honest with our budget and make modifications should an item be more than we budgeted. 
   3. We discovered a bank willing to work with us on a self-build
3. Land
   1. We have been on the search for land for 8-plus months
   2. The price of land is not going to get any cheaper
   3. When we reviewed our home budget and the price of land, the numbers worked.
4. Energy Efficiency and Customization
   1. We have complete control of the design and layout of the home. 
   2. The ability to raise the bar on quality or finishes to meet our expectations and specifications.
   3. I want an energy-efficient home and when in the driver's seat, we can ensure the building envelope is tight and right. 

#customhomebuilder #homebuilder #success #construction #projectmanagement #residentialconstruction #superintendent #financing #banking

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Carolyn can be found on LinkedIn at:
https://www.linkedin.com/in/carolyn-mcmahon-937b89158
Joshua can be found on LinkedIn at:
www.linkedin.com/in/joshuamcmahon15
Email for feedback, questions, complaints, etc:
[email protected]

Daily Journal: https://amzn.to/41p9aKE

We appreciate any and all feedback so feel free to send a text.

Financing and Budgeting your Dream Home:

Introduction: Today, we will discuss the financing and budgeting section of building our dream home. The first and most crucial step is establishing a budget before taking your position on the start line. We will talk about financing a build, budgeting, and managing the budget throughout the build. 

1. Financing your home building project
   1. A construction loan was the only option
   2. Several banks we talked to wouldn't finance the deal
   3. Banks would finance, but not if we were going to self-build
   4. William Hendricks - Integrity Home Mortgage
2. Budgeting the home-building project
   1. Creating a budget based on each aspect of the build
   2. Specifications and cost codes for each (from clearing to closing)
   3. Using my knowledge and gut feeling, applying a guess on each line item
   4. Developed a budget based on gut feeling to have a baseline
   5. Land, County fees, Materials, Labor, etc. 
   6. Tip on saving money on your project: Don’t act like you know everything! Contractors are willing to help if you show humility and respect. 
3. Managing your budget
   1. Discuss the importance of tracking all expenses and comparing them with your budget.
   2. Set up a dedicated bank account for bank draws and paying invoices
   3. Have a purchase order system or a means to commit trades and suppliers to an agreed-upon price before any work commences
   4. Regularly review your budget and expenses. You might need to change your expectations or finishes to stay within your budget. 
   5. Common budget pitfalls: Foundation, Framing, Overspending on finishes

Vendor of the week: William Hendricks Integrity Home Mortgage

Conclusion: building our own home has been a long-term goal of mine, and it is an exciting time—financing, budgeting the build, and managing the home building budget. The project will be rewarding and exhausting, all in the same breath. 

Thanks for tuning in. Please subscribe to the show and leave a review as we read all reviews and make changes to improve the content.  

#customhomebuilder #mcmahoncustomhomes #homebuilder #construction #purchasing #budget #success #banking #finance

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Carolyn can be found on LinkedIn at:
https://www.linkedin.com/in/carolyn-mcmahon-937b89158
Joshua can be found on LinkedIn at:
www.linkedin.com/in/joshuamcmahon15
Email for feedback, questions, complaints, etc:
[email protected]

Daily Journal: https://amzn.to/41p9aKE