How to Thrive in the Remodeling Market

If life is like a box of chocolates, then taking on a remodeling job is like picking a piece and taking that all-important first bite. It's all about discovery. Discovery of all sorts of things—unexpected job-site conditions, strangers' day-to-day routines in their homes, and general contractors' expectations. With today's hot remodeling market,many wood flooring contractors are pursuing this interesting segment of the market, but they need to be prepared for the critical ways in which remodeling differs from straightforward new home construction.

Old Versus New

Spurred on by everything from a smorgasbord of remodeling TV shows to slowly rising interest rates, there is no less than a remodeling craze in today's market. Contractors are finding that today's remodeling projects are taking on a whole new scale. Remodeling projects used to be smaller endeavors, with people making over a room or two at a time, says Chuck McClain, owner of McClain Co. Inc., a wood floor contracting company in Albuquerque, N.M. These days, the contracts are bigger. "We find people are buying older homes and are doing extensive remodeling. That means the contracts, in some cases, are much larger than what a new house would be," McClainsays, noting that these jobs often surpass new construction in complexity.

Unlike new construction, remodeling projects are complicated by an established building with existing floor coverings and, more often than not, occupants. To complicate matters further, that existing building may have been built before there were stringent building codes. "In new construction, it's cut and dried. There it is, and that's all you've got to do." McClain says. Remodeling, on the other hand, can be full of surprises. "A lot of times, you tear up something and expose something you didn't know was there. You need to have the experience to be able to visualize what you are fixing to undertake," McClain says, adding that homeowners and general contractors also need to be informed of potential complications.

Melissa Adelaine, owner and project manager for Harbor Spring, Mich.-based construction and remodeling company Adelaine Construction Inc. agrees that remodeling requires even more diligence than new construction. "You really have to pay attention to the quality of the work that you do. There are a lot of creaks and noises in older homes," she says. "The contractor needs to know how to prep the floor correctly to accept a hardwood floor so that there aren't callbacks." The wood flooring contractor must inspect the job site closely, anticipate as many of the unknowns as possible, and take care of any problems before anything new is installed, Adelaine says. "If you leave a damaged subfloor and put new hardwood over it, there could be something wrong with the wood floor later on," Adelaine explains. "I would rather say, 'Here is what we have found.' That way,the customer knows right away what is taking us so long and where their money is going." (For more on the technical aspects of renovating older wood floors, see the article "History Lesson" in the February/March 2005 issue of Hardwood Floors, which is also available online at nwfa.org.)

On a remodeling project, the wood flooring contractor may be responsible for far more than just the floor, says Frank Kroupa, owner of Elk Rapids,Mich.-based FJK Consulting and technical trainer for the National Wood Flooring Association. Remodeling projects may involve everything from demolition to rebuilding. "Above and beyond that,you get involved with appliances, and the electrical and plumbing end of things," Kroupa says. Arvo Mather,owner and president of Waunakee, Wis.based Schreffler Customer Flooring adds that depending on the project, "You may have to work around cabinets, trim and other obstacles. And, you have to pay attention to the people,their children, their pets—everything." To help maintain good relations during the project, the contract should clearly outline which tasks, such as moving furniture, are not the responsibility of the wood flooring contractor. Before the job starts, it should also be clear if any children or pets will be on the job site,and where they may or may not be while work is in progress.

The combination of potential job-site surprises and the fact that there are occupants means that scheduling for the job has to be tighter than on new construction, says Kim Briggs, co owner of Albuquerque, N.M-based Paul Davis Restoration & Remodeling. "You really need to plan for the occupants of the house to make sure you aren't going to tear out a vital part of the house and then not be able to address it right away," Briggs says. "Prioritizing your schedule is very critical, with an emphasis toward keeping the house functional."

Cleanliness is a crucial facet of keeping an occupied house functional during remodeling, says Tim Rizek, owner of Albuquerque, N.M.-based custom home and remodeling company Rizek Inc. While many companies can get away with being sloppy on new construction job sites, that isn't an option on are modeling project. "If you have a new construction attitude about remodeling,you won't make it at all," Rizek says. "Your customer is living with you on the project. You have to communicate to them when you are going to be there,when you are not going to be there,when they can be on the floor, when they need to be off the floor and when they cannot be around because of the fumes from the finish."

Despite these complications, a benefit to remodeling projects is that there aren't usually as many trades working on the job site at one time. "[In new construction], you are dealing with anywhere between five and 10 other trades on the job at the same time, because they are pushing everyone through at the same time," says Tim McCool, co owner of O'Fallon, Mo.-based Cornerstone Flooring Inc., adding that there modeling job site often has more favorable conditions in which to install,sand and finish a wood floor. The homeowner and/or general contractor are more likely to make sure the HVAC system is running and that other trades and foot traffic are out of the way, he says.

The GC and You

Wood flooring is in demand more than ever for remodeling jobs, so a reliable wood flooring contractor is invaluable to a remodeler. If wood flooring is the flooring of choice for a job, Phil Baeten,owner of Oshkosh, Wis.-based Baeten Building & Remodeling LLC, says his first instinct is to find someone who specializes in installing wood floors. "I don't generally like to work with large flooring companies that do every kind of flooring under the sun … I tend to go to the guys that specialize in specific floors, like doing them, do a good job and are busy doing just that," he says.

When it comes to choosing a wood flooring contractor, price is not always the top priority. In his business, Baeten expects to have a good working relationship with his wood flooring contractor, and he also expects them to educate and communicate with the customer. They need to be on time, do their job to the best of their abilities and take responsibility for their work, he says, adding that he likes to see how they handle situations when things don't go as planned. "How do they work with a problem or a situation that has failed? Do they take advantage of the situation? Do they blame everybody else, or do they just pitch in and help solve it?" he says. Baeten visits potential subs' job sites, talks to the contractors they have worked for in the past and takes his time choosing one. "How they work with me is an indication of how they are going to work with the customer," Baeten says. "I expect a really professional demeanor. Not necessarily that they are dressed in a suit and tie,but that they come off as knowledgeable, respectful and communicative … I need a flooring contractor that can provide input, not one that stands there,nods his head and says, 'Yes, yes, yes,'then six months down the road tells mewe should never have done that."

Baeten also says it's crucial that wood flooring contractors communicate their needs up front. "Do they need a 220 line? Do they need access to something? How are they going to get their equipment in? If they see problems and they don't mention them until the morning they show up, that is not a good working relationship," Baeten explains. It also helps when the wood flooring contractor realizes that he is part of a team and is willing to coordinate with the other crews on the job site, he adds.

Rizek's business has seen an in crease in wood flooring jobs, partly because of his own education after meeting his current wood flooring contractor at a home show. "At that time, I was doing mainly tile floors because I didn't know all that much about wood floors and how they work on cement … Once I learned that you could do all kinds of things on concrete, that's when I started pushing wood floors a little more. [The contractor's] knowledge of the industry and the materials is one of the things that drew me." That knowledge continues to be invaluable when it comes to educating his own customers, Rizek says. "Our job as a general contractor is to give the homeowner enough options that they can be flexible when making decisions. Part of that flexibility comes from our wood flooring contractor, because we can send our customers to his showroom and they can see all the options."

Designer Patti Harrell Hoech, owner of Albuquerque, N.M.-based Patrician Design, expects her subcontractors to be well-versed. She keeps her subcontractors in the loop and expects them to participate in the decision-making process. "It goes back to them knowing their products and trade and being able to say, 'Have you considered using this,' or 'This might be good in this application, but it won't work well here,'" she says. And, once decisions have been made on species, color, flooring type and installation, a wood flooring contractor must be able to provide exactly what is expected, she says.

Time also is of the essence, says Patrician Design's Harrell Hoech. "Because the installation of hardwood floors is rather invasive—everything pretty much has to come to a halt—it's important to get in and out so that the schedule can keep going," she says. "With remodels, there might not be many other trades involved, but you still have a tremendous amount of disruption. Timeliness and reliable scheduling, no matter what the trade, are vital."

Briggs' business focuses primarily on insurance restoration work, and for him,a remodeling job is about giving back to homeowners what they had before the damage occurred, making his customers as comfortable as possible during the process. That means that his wood flooring contractors should be focused on cleanliness—both on the job site,including using dust containment systems, and as it pertains to the manners and appearance of the installation crew. "If you have installers that don't look presentable, have bad mannerisms, are dirty and have odor, that does not bode well in an occupied home," he explains. "The homeowner, on a remodel, has to feel like they can trust the people working in their house."

Advice from the Wood Floor Guys

For a wood flooring contractor just entering the remodeling market, knowledge and communication are key. He must have knowledge of his product,his craft and his customer, as well as the ability to relay information clearly and accurately. "A lot of times, the customer has a perceived vision of what they want. They don't always have an understanding of what it is going to take to get there, though," McClain says. "The biggest thing is to educate your customer so that they understand what they are buying and what the negatives might be. You don't sell on the negatives, but you need to reveal them."

Managers of wood flooring companies should also take extreme care in the training and policing of their employees, letting them know clearly what is expected of them on the job site, McClain adds. "We make sure they are performing the way we want them to perform," he explains. "That entails getting out to look at the jobs and going to the job after we finish and seeing the circumstances we left it in."

To keep a job running smoothly, a wood flooring contractor should adhere to the schedule and keep the homeowner and general contractor abreast of what is going on. "We do the job the way we said we would do it … People understand that they are going into a remodeling project and that it is going to be a disruption in their home and in their lives," McClain also notes. "But, tell them what you are going to do, explain it as thoroughly as you can, and then do the job exactly that way." (For more on customer relations, see the sidebar "Customer Therapy")

In addition to doing the job as expected, wood flooring contractors also need to be clear about educating the customer on products, McCool says. "I know it sounds simple, but some people will say, 'I will give you the No. 1 flooring.' Well, No. 1 flooring is actually clear, but they bring in No. 1Common flooring … People think they are getting the best, and they are getting the third best because No. 1 Common is third on the grading system,"Cornerstone's McCool says. "Make sure to inform the customer of the choices and supply what you say you are going to put in. It's all about keeping everyone on the same page." When they aren't informed, it's hard to recover from the broken trust, he adds.

Reconciling a customer's expectations for her wood floor with what is achievable is an important aspect of educating her about her choices. "You really have to educate customers about the product that is being installed and the special characteristics of the flooring—hardness, color and stability," Mather says, noting that sometimes, what a customer expects  from her floor just isn't realistic. "Of course, there is the normal scratching,gouging and denting. People have to realize that it's a floor. It's made to be walked on."

Hard Work Pays Off

Quality work is the goal of most wood flooring contractors, and referrals are proof that good work earns rewards far beyond the successful completion of a fabulous wood floor. Adelaine work shard to earn her customers' trust. "Our past customers are very good friends of ours … I am choosing my homeowners as people I know I will have a good relationship with," Adelaine explains. Adelaine also promotes her business through her membership in her local homebuilders' association, as well as by serving on the remodeling council within that association. "We have specific fliers and information that are for the remodeler's council that promote the remodeling side of the industry and the businesses that are a part of that,"she says.

Networking through trade shows and industry association memberships can be valuable sources for customers,Mather says. "We do a lot of trade shows, and they seem to work pretty well. I am also a member of the National Association of the Remodeling Industry(NARI), and that really helps out,because we are put in touch with contractors looking for wood flooring people," he explains. Good customer service also helps keep Mather's customers coming back. "We really try to excel in customer service. We have a certain form that we go through when we go to the customer, and we check everything off. We have the customer sign and initial our estimate sheet. We have specialized dust containment equipment, and I check any complaints myself, meeting directly with the customer," Mather says.

That's the kind of attentiveness required to succeed in the lucrative but sometimes-tricky remodeling market. With the right skills, an understanding of the general contractor's expectations and consideration for the disrupted homeowners, a wood flooring contractor's remodeling work need not be a daunting mystery, but rather a profitable adventure.