Tuesday, 28 June 2011

Laying the ground rules for new homes

On all new sites developers must comply with a variety of requirements from a number of different organisations, which sometimes have competing priorities, in relation primarily to the ground, and cover sewers, surface water, contaminated land, highways and the various utilities. In recent years, developers have raised concerns that this conflict can prevent the smooth flow of development, before the superstructure has even been considered.

In response, in late 2010, the NHBC Foundation undertook a series of workshops to test the awareness of legislative changes that affect design and construction below ground level of new home developments.

The technical and engineering professionals, house builders, consultants and contractors who took part in the workshops highlighted a wide range of ground related issues that they feel should be addressed. These findings are outlined in the latest NHBC Foundation report: Ground related requirements for new housing.

Ground related issues affecting the construction industry

The workshops highlighted an opportunity for regulatory and approval bodies to coordinate with other organisations in their approach to below ground requirements. Fundamentally this would benefit the construction industry by better enabling efficient construction and development.

Recent legislative changes were highlighted as a contentious issue. While many construction professionals were aware of changes such as the Floods and Water Management Act 2010, they did not know the details of the requirements and consequences. Effective communication would be required to inspire builder confidence in putting the requirements into practice for new homes.

The construction community raised a number of specific suggestions and issues during the workshops. These included:
  • A united approach to drainage infrastructure: Currently, a number of infrastructural requirements are open to individual interpretation. Delegates expressed a preference towards one body being created with sole responsibility for drainage infrastructure that would provide a service to help builders comply with published performance standards.
  • Long term sustainable drainage solutions (SuDS): When thinking about the future of SuDS, delegates were concerned about the ongoing performance of the systems put in place. Maintenance currently involves multiple bodies, which it is difficult to coordinate.
  • How can Ofgem help: Delegates felt greater awareness of Ofgem is needed across the industry, as the standards set out by the body applying to gas and electricity assist both in planning and monitoring that the construction programme runs to time.

Technical guidance for below ground construction

The workshops helped identify the raft of technical and legislative challenges that construction professionals face even before they start on the superstructure. Over the coming weeks, the NHBC Foundation blog will be providing technical guidance on legislation around sewers, SuDS and contaminated land, highways, water and electricity. Please get in touch by leaving a comment if there are any specific technical issues you would like us to cover.

Monday, 20 June 2011

Communication is key through the home buyer journey

For many consumers, buying a home is one of the most financially and emotionally challenging experiences in a lifetime. That’s why NHBC brought together a Task Group under the chairmanship of John Calcutt to investigate how house builders address consumer concerns about quality, customer services and overall satisfaction with their new homes.

Two resultant best practice guides, Home Sale and Handover and Management of Post Completion Repairs, highlight the negative impact that a lack of communication is having on the relationship between house builders and home owners – and how it can be avoided.

Handing over the new home

There is no single standard that defines the finished quality required of a new home. It was thought by some that consumer protection for people buying a new home is weaker than most other products. However, given that no other consumer purchase comes with the benefit of legal advice, combined with a raft of legislation that applies to the home building industry, this is patently not true.

While the Consumer Code for Home Builders and Building Regulations are there to protect consumer rights, there is limited guidance for house builders on good practice in ensuring consumers are happy with their new home.

We found that house builders would benefit from clarity on what constitutes good practice in handing over a completed home to its buyers. House builders could inspire greater satisfaction in their customers by following our ‘customer journey model’ (see diagram). The model sets out the depth of the information that house builders should be giving to their customers every step of the handover process.

Post completion repairs – snagging

Importantly, the customer journey model draws attention to customer engagement post completion. This is a vitally important stage, as any problems with the house can cause distress for its new occupants.

One of NHBC’s recent customer satisfaction surveys found that customer satisfaction decreased rapidly during the first nine months of ownership, due to problems in the home not being dealt with promptly. Wavering satisfaction is compounded by the fact there is no one standard for the finished quality of new homes, which makes it even more important to provide clarity to home owners on the service they should expect post-purchase.

Our research showed that 28% of house builders do not budget for post-completion repairs. We have thus recommended that house builders explain to home owners what they (the house builder) are responsible for repairing and, additionally, provide a process by which home owners can report repairs needed and a timescale in which they can expect them to be resolved. This combined with developing a proper understanding of the costs and causes of post completion repairs – and budgeting for them, will lead to better management of customer satisfaction.

Our step-by-step process provides a best practice model on how to go about addressing repairs effectively (see diagram).

The best customer experience

NHBC Foundation’s best practice guides demonstrate that a fundamental shift in communication between house builders and future home owners is needed. Builders need to talk to customers to manage their expectations. This way the homeowner will not be left alone to create their own story around what they can expect and when.

Home Sale and Handover and Management of Post Completion Repairs provide helpful guides for house builders to follow during the handover and post completion stages. Ultimately by giving customers the information they need in detail, house builders will enhance the customer experience thereby heightening customer loyalty.