2007 Media Releases & Alerts
National Housing Quality Program Achieving Positive Business Results for
Certified Builders and Trades
Quality and Business Management Program Provides Third-Party Certification;
Increases Productivity, Profitability, and Customer Satisfaction for Home
Builders and Trades
February 7, 2007, Orlando, Fla. - Designed to foster consistency and
quality in building practices, NHQ certification is presented to home builders
and trade contractors who have documented and implemented quality management
systems, and participated in a rigorous annual review of the implementation of
those systems. Certification requirements ensure that all elements of a
company’s quality assurance systems are incorporated to improve quality
performance and provide greater customer satisfaction. Results of a recent
Research Center survey of NHQ Certified builders and trade contractors
underscored the program’s positive impact on productivity, profitability, and
customer satisfaction ratings for participating companies.
Driving Forces Behind NHQ Success
Three factors have driven the NHQ Program’s growth since its initial pilot phase
in 2003 and national launch in 2005. First, more knowledgeable consumers are
demanding better products and better service. Second, some areas of the country
have experienced a rise in construction defect litigation. Third, the
availability of general liability insurance has decreased while the cost has
increased for most home builders and trade contractors.
Program participation has increased 77 percent since late 2005, rising from 26
builders to 46 at the end of 2006. An additional 24 small and large builders
are currently involved in the program’s consultative phase and are working
toward certification in 2007.
Another of the NHQ Certified Builder program’s primary components focuses on
builders working more efficiently with trade contractors. As a result,
participation in the complementary NHQ Certified Trade Contractor Program has
now reached over 2,600 companies. Of those, 375 have earned NHQ certification –
a 64 percent increase over this time last year.
NAHB Research Center president Michael Luzier said, "The NHQ Program is a
powerful management tool that will continue to play a vital role in changing
the business of home building and the quality of new homes. NHQ Certification
means proactively identifying and addressing recurring problems, requiring
accountability for and documentation of quality management procedures, and
building homes right the first time. We are excited about the positive impact
the program is making in the industry and look forward to seeing a greater
number of builders and trades become NHQ Certified."
NHQ Certified Builders Realizing Results
NHQ Certified Builders have realized tangible business improvements and
documented significant increases in productivity and profitability, as well as
increased customer satisfaction as reported in customer feedback surveys.
Notably, in some markets, NHQ Certified Builders have experienced a bump up in
the J.D. Powers rankings.
Tim Lewis Communities, an NHQ Certified Builder in Sacramento, Calif. ranked
among the top three in customer satisfaction for the market according to the
J.D. Power and Associates 2006 “New Home Builder Customer Satisfaction Survey.”
Problems per 100 homes are also down for the company, which reports a nearly 50
percent drop in the number since 2004; leading the Sacramento market with the
fewest per 100.
Tim Lewis, president of Tim Lewis Communities said, “Due to our quality check
process prior to orientation, defects during construction have dropped by
nearly 50 percent since becoming NHQ Certified. It is agreed within our
company, that NHQ certification has helped catapult us into this high ranking.”
A 2006 Research Center survey revealed that over 70 percent of NHQ Certified
builders had improved their bottom line. Additionally, over 75 percent reported
a reduction in callbacks and improved relationships with trades.
David Simon, president of operations for Veridian Homes said, “NHQ Builder
Certification has allowed us to integrate our quality, safety, and
environmental systems, creating efficiencies and improving the effectiveness of
our operations. Results in 2006 include reducing inspection costs by 50 percent
while at the same time reducing defects by over 50 percent.”
A companion survey of NHQ Certified trade contractors revealed that operational
improvements achieved with the NHQ Certified Builder program are not one-sided.
Over 80 percent of NHQ Certified trade contractors reported a reduction in
callbacks. Additionally, 88 percent achieved an increase in employee
accountability; 79 percent improved relationships with builders; and over 65
percent improved their bottom line.
Frank Alexander, NHQ program director at the NAHB Research Center, credits the
consistent growth of the program to the continued support of industry partners
and sponsors, and an increasing number quality-focused builders seeking to
distinguish themselves from competitors in their respective markets.
The NAHB Research Center has organized NHQ educational sessions at the 2007
International Builders’ Show to share best practices of top performing NHQ
Certified builders and address the connection between documented quality
assurance programs and risk mitigation.
About the National Housing Quality Program: NHQ activities
include the Certified Builder Program, Certified Trade Contractor Program,
Manufacturer Training Certification program, and co-sponsorship of the National
Housing Quality Award Program. Builders interested in starting on the path to
quality certification can visit www.nahbrc.org/quality, send
an e-mail , or contact Rita Knab, NHQ program coordinator, at
(800) 638-8556, ext. 6225.
2/07
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