Over-Promise and Under-Deliver – Problems in the Residential Construction Industry

​Overview to Problems in the Construction Industry

​North America has many business related issues and problems that plaque the continent.  The construction industry is only a small part of the whole business sector but exemplifies these problems very well.  Maybe the reason is that the Construction Industry has always been and most likely will always be fairly Blue-Collar.  I want to give you a list of the problems I have seen and faced and also a reason (or possible reason) for these problems.  I will primarily focus on the Residential Construction Market in this article.

A list of Residential Building Industry Shortcomings

• Over-Promise and Under-Deliver
• Overpriced Services
• Schedule and Timing Issues
• False Advertising and Deception

Over-Promise and Under-Deliver

This is a big one.  It causes by far the most serious problems.  Instead of being realistic or even under-promising, the common attitude is that making big promises is better than telling the unpopular truth.  6 weeks lead times become 2 week lead times.  A $500,000.00 budget becomes a $400,000.00 budget, no problem.  We can get it done for you faster than anyone else – and for much less money.
And who is it that does this over-promising?  Well, the builder and every trade thereafter.  Everyone wants build themselves up and put the competition down even if they know that what they promise and predict is a lie.
And the worst thing is:  The customer buys it.  Is it because he just does not know any better or because he wants to believe in a positive outcome, I do not know.
The result is the inevitable correction by reality.  Things get delayed, things get lost, things just do not go as planned for a myriad of reasons.  And then people get unhappy – the customer is unhappy and all the trades that rely on the timing of the trade before them get upset and possibly loose money.
I have seen this over and over again with terrible effects for all involved.  Ironically, the only group that suffers the least from this is the group that made the over-promise.  “Just over-exaggerate on what you can do and in the end you will be just fine”, seems to be the lesson here.

Overpriced Services

This is a straight forward issue.  Charge more (sometimes much more) than the service or product is worth.  This is a bigger problem in the service area of construction than it is in the products area.
I have seen plumbers, electricians, installers, painters and all the rest charge outrages fees for their services.  Medical Doctors cannot even keep up with their pay-rate.  I haven seen heating and plumbing installers make $3,000 in 2 days for average work.  The list is endless and could drive any frugal person insane in a short time.  
So, better close your eyes when writing checks to all the companies involved in the building of your house.  Homeowners beware of paying more than the work is worth.  I suggest always to compare it to the wage of someone that has a college degree such as a doctor, lawyer, architect, etc.  Doing that will give you a better idea of how much is too much.

Schedule and Timing Issues

This will be a shorter section since we already semi-touched on the point when I discussed the over-promising problems.  To give people a false sense of timing is very dangerous.  There is a long list of trades involved in the residential building industry and if one person delays a project all others suffer.  They now have to adjust their schedules and bookings accordingly which is not always possible and might cost them trouble and money.
When you say 4 weeks, it has to be 4 weeks (or faster).  Sorry, but we are delayed is not good enough when you are not the only company involved in a project.  You make it work or you need to compensate the other parties that now have to suffer (picture the flooring company delaying their install by 2 weeks which now affects the interior door installer, who in turn has a schedule of his own, and so on).
Now in the real world I have never seen any company compensate other companies for their lack of seriousness in timing matters.  I think this is a huge problem and shows the “lack of love” for your fellow man.

False Advertising and Deception

And the final point is about deception and the lies that are an ongoing part of the residential building industry.  During construction I have seen people (companies) make claims about their product during the sales phase that are just plain wrong.  They hype up their product and do not disclose certain details that could cause issues later on.  The hope is that once the customer commits to buy a certain product or service it will then be too late for him to back out.
Now about the deception aspect.  It is a well-know fact among house builders that you always need to have a good finishing crew, which includes the drywaller and painter.  The reason is that especially the painter can hide many of the problems that have arisen during construction.  For example, crooked trims, uneven walls, bad joints, etc.  This practice is really shameless to the point where the construction manager is actually proud to have deceived the customer who will have to live in the house (and paid good money for it).

Final Thoughts

The construction industry is a rough business and I would say some of the problems can be excused to a certain extend because of that.  Other business sectors such as IT, photography or retail, for example are a lot less stressful and complex.  There is less need for aggressive trickery when the work is more contained and straight-forward.
However, overall I do condemn the residential construction industry for making a possibly good business into a wolf’s den.  How it can be made better I do not know, unless people start being honest and true and pay for the mistakes not just in words (saying Sorry) but in deeds.