Quality Matters

July 2006

Welcome to the Quality Matters E-Newsletter, a regularly-distributed publication that will keep readers up to date on quality-related news and resources for the home building industry. You can access prior issues or subscribe to this electronic news service on the NAHB Research Center's website - http://www.nahbrc.org/quality - by clicking the "Read All About It" link on the right-hand side of the page.

We want to hear about your quality-related news for future issues-email information to qualitymattersmoderator@nahbrc.org. (The NAHB Research Center's editorial staff reserves the right to refuse or condense any news submission.) Enjoy this issue of Quality Matters.

In this issue:


Thank You NHQ Sponsors

The National Housing Quality Program thanks its founding sponsor, SimpsonStrong-Tie Co., Inc., for their continued support of quality assurance in home building.

The NHQ Program is continuously seeking additional partners to support its efforts to improve quality in the home building industry. If your company is interested in pursuing NHQ sponsorship, a variety of opportunities are now available.

For more information, visit the NHQ sponsorship information page or contact Lisa Gibson, NHQ Program sponsorship coordinator, at (301) 785-3100 or lwgllc@yahoo.com.

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KB Home North Los Angeles Achieves NHQ Certification

KB Home's North Los Angeles division was recently awarded the nation's latest NHQ Certified Builder designation following a rigorous NAHB Research Center audit of the implementation of their quality assurance systems. KB Home was the first production builder in California to earn the certification, and currently has eight NHQ Certified divisions operating in the state.

This division of KB Home has been building quality homes in communities throughout the Los Angeles metro area since 1963. "Becoming the first builder in Los Angeles to be named an NHQ Certified Builder is a significant milestone in our continued commitment to providing superior customer service, innovative architecture, and quality homes," said KB Home North Los Angeles division president, Tom DiPrima. "KB Home is driven by these goals in everything we do. Participating in the National Housing Quality Certified Builder program was particularly important to our division because it demonstrates to homebuyers and our partners that KB Home is dedicated to delivering quality homes."

The NHQ Certified Builder Program is designed to foster consistency and quality in building practices. Launched during the 2005 International Builders' Show, the program recognizes builders who have implemented formal quality assurance systems and have participated in a rigorous audit by Research Center quality experts. Since the program's launch, participating NHQ Certified Builders have noted measurable improvements in their productivity, homebuyer satisfaction, and their bottom lines.

If your company has a strong commitment to customer satisfaction, a focus on quality assurance and continuous improvement, and strives for operational excellence, start on the path to NHQ certification today. Visit www.nahbrc.org/quality or contact Don Carr, NHQ Certified Builder program manager.

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Selling Quality Assurance to Potential Homebuyers

In today's competitive home building market, builders are compelled more than ever to distinguish themselves from their competitors. Highlighting construction features and offering creative incentives is one approach. But you can also gain a competitive edge by promoting your ability to deliver quality results. Presenting your quality story is an effective way to move beyond the standard sales and marketing pitch and give substance to your achievements. Consider applying some the following methods to share your quality story with potential buyers.

Customer Satisfaction Results

An effective way to demonstrate quality results is a portfolio of customer testimonials. Assemble letters from satisfied customers into a binder for easy viewing. Include comments and excerpts from customer satisfaction surveys and positive comments customers have made during conversation. As the portfolio grows over time, you'll have an impressive and well-documented account of positive customer feedback.

Presenting numerical results data is also a very effective way to substantiate superior quality assurance capabilities. Typical statistics with positive impact might include percentages of satisfied homebuyers, on-time closings, and homes with zero defects.

Quality Assurance Program

Impressive quality results can be easily supported by illustrating the quality assurance methods that produce them. A systematic process like the NHQ Certified Builder Program enables participating builders to maintain a documented system that includes a quality plan, inspections, and defect prevention. When a problem is found, it is corrected, the cause is analyzed, and actions are taken to prevent recurrence. It may even be useful to display examples of inspection checklists to explain the process. This clearly shows prospective homebuyers an ongoing commitment to quality results and customer satisfaction.

Continuous Improvement

Quality builders can also appeal to a buyer's sense that they are the beneficiaries of many cycles of feedback and improvement from previous homeowners. Describe how your customers are solicited for feedback on design, features, material selections, construction details, and customer service. Show potential buyers your feedback survey and use it as an agenda to discuss customer-focused topics that are continuously improved. Explain how customer feedback on the topics is used to improve the satisfaction of future homeowners.

A Quality Culture

Homebuyers appreciate builders with a quality culture because it tends to be consistent with their own priorities. Items such as quality mission statements, ethics and policies, and industry awards help to validate high levels of quality achievement.

Build on these basic ideas to develop the best approach for promoting your company's quality story. Share it with employees, train them how to tell the story, and encourage them to take pride in the company's accomplishments. It could be just the thing your next homebuyer wants to hear.

To learn more about the National Housing Quality other measures of quality improvement visit the NHQ webpage or contact Don Carr , NHQ Certified Builder program manager.

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Research Center Unveils New and Improved Online Resource

If you're a building professional and have never explored ToolBase.org, now is the time to check it out. ToolBase Services, always known as a reliable resource for technical information on innovative and advanced building products and practices, has recently re-launched with a new and improved site architecture and navigation system. Even if you're a regular user of the site, you'll discover brand new ways to improve the homes you build today.

New features include a more streamlined format, helpful cross references, and easy-to-find tools so builders, trade contractors, and remodelers can quickly locate what they need. Enhanced resource sections have also been added to provide more comprehensive information on Building Systems, Home Building Topics, Design and Construction Guides, Best Practices, and Construction Methods.

The Research Center continues to refine the selection of tools available through ToolBase Services as the information needs of building professionals evolves. Some of the site's more specialized resources include:

  • The PATH Technology Inventory. An online listing of over 150 advanced technologies and practices, the PATH Technology Inventory provides a repository of reliable, non-commercial technical information for building professionals. Among the Technology Inventory's new features are downloadable Computer Assisted Design (CAD) drawings for over 40 technologies that builders and architects can add directly to plans. And, new online videos further explain product benefits and demonstrate installation.
  • Field Evaluations. This process places new technologies into residential construction projects across the country so they can be evaluated in real-world conditions. The ToolBase website contains the findings of the nearly 40 field evaluations that have been completed, covering all types of building systems from electrical and HVAC to foundations.
  • PATH TechSets. A new resource to help builders implement innovations in manageable, systems-based packages, TechSets take the guesswork out of choosing cost-effective technologies that can improve home quality and deliver distinct market advantage.
  • ToolBase TechNotes. These technical write-ups offer fundamental narratives on common issues builders want to know more about. Each fact sheet includes a subject synopsis provided by NAHB Research Center experts and additional resources for more detailed information.

For more information and to browse the NAHB Research Center's existing ToolBase Services website, visit www.ToolBase.org. Or, to research innovative technologies and practices that could help improve the quality and performance of your new homes, visit the ToolBase Technology Inventory, at www.toolbase.org/techinv.

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Testimonial: My NHQ Certification Gives Me a Competitive Edge

The NAHB Research Center takes pride in sharing the success stories of the builders, trades, and suppliers participating in the National Housing Quality Program. This month, Quality Matters talked with Josh Bollinger, president of Bollinger Construction, about the value of the NHQ Certified Trade Contractor designation and how it has improved his business.

In operation since 1992, Bollinger Construction has grown from a small framing company to a large operation of 75 full-time employees, and over 400 subcontractors. In 2005, Bollinger became the first NHQ Certified framing contractor in Maryland, and is one of only three framers to earn the designation on the East Coast. Now, less than one year after becoming NHQ Certified, Bollinger Construction has a positive story to tell.

Bollinger Construction is eligible for NHQ re-certification soon. How important is it to you to pass the audit and maintain your NHQ Certified status?

It's extremely important. Until we got involved in this program, we didn't realize how much time was consumed correcting mistakes. The NHQ Program has not only helped us clean up the way we do business, but it has also helped us gain more clientele. We're more accountable and more profitable. It's been unbelievable.

What were your initial thoughts about implementing a program like NHQ?

Honestly, I was very skeptical at first. My initial thoughts were that it wouldn't matter enough to builders and that your price was what made you competitive. But I was pleasantly surprised. Quality assurance has taken priority and the outlook has shifted. We're achieving better results from getting the job done right the first time, and builders have taken notice.

So response from builders has been positive?

Absolutely. In 2005, we won the Trade Partner of the Year Commendation for Excellence from Brookfield Homes and we're very proud of that. We've also received calls from big builders that we've never worked for before. In one particular instance, the builder saw the NHQ logo on our trucks and now, we're on 10 active jobsites for them. NHQ has opened doors for us.

Has there been much of an effect on employee morale?

Our reinvigorated approach to quality has definitely trickled down to the staff. And, the increased efficiency and profitability has allowed us to offer more incentives and benefits to our crew. Employee turnover is way down because the NHQ designation has been an enticement for competent people.

How has participation in the NHQ Certified Trade Contractor Program affected your bottom line?

Prior to NHQ, our first-time inspection pass rate was between 60-63 percent, consistently. After NHQ, our first-time pass rate with code inspectors is 97 percent, consistently. Even with the slight downturn in the market, our numbers are solid. Profitability has increased almost 10 percent in the last year and we've never achieved that kind of increase in all the years we've been in business. The evidence is hard to deny.

If you are an NHQ Certified Builder, Supplier or Trade Contractor and would like to share your success story, please email qualitymattersmoderator@nahbrc.org.

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NHQ Program Welcomes New NHQ Certified Trade Contractors and Suppliers

The NHQ Program is proud to announce the following newly-certified trade contracting and supplier companies:

  • Air-Rite Heating & Cooling of North Aurora, Ill. - first HVAC company in Illinois
  • Loredo Masonry of Natalia, Texas - masonry contractor
  • Riggs Plumbing, LLC of Mesa, Ariz. - plumbing contractor
  • Structural Systems, Inc. of Thurmont, Md. - framing, window and door installation contractor
  • Truss Manufacturing Co., Inc. of Westfield, Ind. - first roof and floor truss supplier in Indiana

Business efficiency is vital to a company's success, so the importance of achieving high levels of customer satisfaction should never be underestimated. The NHQ Certified seal represents the high standards of quality today's builders and homebuyers expect.

If your company has a strong commitment to customer satisfaction, a focus on quality assurance and continuous improvement, and strives for operational excellence, start on the path to NHQ certification today. Visit www.nahbrc.org/quality.

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Quality Matters to Me...

The following testimonials describe how customer-focused quality has improved the business of home building for National Housing Quality program participants:

The certification program and its training techniques have instilled a spirit of self pride in our workplace-from the top down. Our builder survey results continue to improve."
-Dico, Inc.

"The NHQ Program is an asset for quality and [improving] employee accountability."
-Tyler Stevens, Dynamic Plumbing

"Overall, the program is a positive change in the company. Employees and management have become more accountable for their responsibilities in regards to producing a high quality product."
-Truss Manufacturing Co., Inc.

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NHQ in the News

The following is a list of recent NHQ Program media coverage. Read all about it…

Forbes.com, "KB Home Earns Austin's First Certification for Exceptional Quality and Customer Satisfaction," June 2006.

Los Angeles Business Journal, "KB Home Gets NHQ Certification," article announces KB Home's designation as first NHQ Certified Builder in Los Angeles area. July 2006.

Professional Door Dealer, "Take the Positive Approach," article highlights NHQ recommended strategies for retaining skilled crews. July 2006.

Families.com, "The Dos of Working with Trade Contractors," article touts the benefits of working with qualified trades and looking for an NHQ Certified contractor. July 2006.

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