CLIENTS FOR LIFE

The Home Asset Management Plan (HAMP)

Understanding the Model
for Professionals in the Remodeling and Construction Contracting Industry

CLIENTS FOR LIFE’s Home Asset Management Plan (HAMP) is a new and unique program that takes a comprehensive view of a customer’s home and property from the top down. HAMP is designed to be a full service program that meets the total needs and desires of a unique segment of the market. The cornerstone of the program is the strong relationship of total trust and confidence that your company has earned through past work. The goal of the program is to provide the client with a reliable and trustworthy “partner” or “advisor” for maintaining and enhancing the value of their home, assisting the client in creating a personal vision for their property.

The plan “binds” these three basic components:

1. Maintenance – Routine inspections and service focusing on such items as HVAC, lawn maintenance, sprinkler systems, alarm systems, filter changing, energy cost reduction, etc
2. Repairs – Small non-recurring maintenance projects such as replacing a window, repairing a door, etc.
3. Remodeling and building new structures – This will include full service remodeling of kitchens and baths, room additions, home offices, major renovations, etc., as well as building a guest house, adding a garage, perhaps constructing a vacation home, creating a pool house, adding an outside entertainment area, and other such projects

The plan will contain a list of projects with project schedule and estimated costs that will become the action plan for the next twelve months as well as the planning document for future projects within the next 3 to 5 years. The plan will grow and change over time. It is intended to invite an ongoing interactive dialogue with the client.

The Mindset Change. Upon seeing the program for the first time, some may have the reaction “we are doing most of this now-what is the difference?” Instead of looking at a client as a good source of work, and knowing they will call you when they are ready to do some remodeling, the HAMP program takes a “proactive” approach, and has created a plan where we regularly contact them. We don’t wait for the clients to call with their next project but are proactive in setting up a meeting with them to jointly develop a three to five year plan for resolving their facility needs and desires before they arise.

To understand the HAMP mindset change, we need to ask:

“Why is the HAMP program different?”
“How is it unique?”
“What sets it apart from what we’re doing now?”

The answers are:

• We are ‘proactive’ instead of reactive (waiting for a call)
• We take a ‘global, comprehensive view’ instead of a job by job view
• We ‘jointly develop a proactive plan’ with the client
• We develop a ‘long range plan’ (at least three years)
• We help the client create a ‘vision’
• We address ‘family needs’
• They are our ‘client for life’
• We have a “WIT” (Whatever-It-Takes) attitude

What the program is not:

• It is not a “small job specialist” program. This is the ‘handyman’ concept and that is not the focus of HAMP. We want to distinguish HAMP as being a program that meets the total long-range needs and desires of a unique segment of the market. Yes, small jobs are included in the program but as a part of the service we provide in the total package.
• It is not a “home inspections” program. There are individuals and companies that offer this service and we are not in that business. We will do a home assessment as part of our data collection but that is only a small segment of the total package.
• It is not for everyone! This is a unique program for high-end clients and we must do everything possible to make them feel that they are unique. These are clients who want someone to take care of all their property needs and are willing to pay for a trusted advisor.

These short, to-the-point videos include:

• How to Manage Expectations – How to clearly establish realistic expectations from the very first meeting with the homeowner and thereby lay the groundwork for a smooth, successful project.
• Understanding the Homeowner’s Position – How to manage and work with the homeowner’s fears and uncertainty about the remodel and fortify their confidence in you and your work.
• The Homeowner Roller Coaster – How to use the path and arc of the emotional roller coaster to your advantage by sharing it with customers, guiding them through the ups and downs, and managing their experience every step of the way.
• The Four Elements of Trust – How to eliminate 90% of the issues that arise on every project by following the four elements of trust.
• Manage the Process – Four tools to create a documented “paper trail” that helps the homeowner feel informed, safe and taken care of throughout every phase of the project.
• Working with a Schedule – How to work with a construction schedule to communicate with homeowners, trade contractors and suppliers, and use a pre- construction schedule to manage the homeowner experience during the design process.

The Homeowner from Hell – How to identify the warning signs of a “Homeowner from Hell” — those customers who have no qualms about making you and your team miserable as they cost you money, time and any semblance of sanity.

Agree to Procedures Before the Project Starts – How to eliminate ambiguities and misunderstandings by clearly defining jobsite procedures before the project starts..

Who are the Clients for Life, HAMP clients?

Possible Client Profiles

•  People of means, i.e. high-end clients
•  Past clients with whom the company has enjoyed a trusting relationship
•  People who want someone to take care of the needs of their home
•  People who are willing to pay for services for the home and grounds
•  Those who understand the value of an advisor to help care for one of their valuable assets

What are we offering?

 

• Trusted advisor in joint collaboration with client to take care of all the facility needs and desires of the client
•  Full-service program for client’s property
•  Comprehensive plan helping client manifest their vision of home
•  – Home Asset Management Book – attractive compendium of work and longer-term plan
• – Home inventory

Why are we offering the Home Asset Management Plan?

Client benefits

 

• Provide on-going reliable and efficient care of their valuable asset, their home and grounds
•  Encourage client’s realization of their home as a reflection of themselves
•  Encourage longer-range planning which can minimize the emotional and financial impact on client
•  Relieve client of burden of home care
•  Provide a trustworthy partner or adviser for maintaining and enhancing the value of their home
•  Provide the assistance they need to create a vision of possibilities
•  Create a documented annual plan to preserve and enhance their home
•  Just like a family doctor, you become the family contractor
•  We become a “single source” home adviser

Company benefits

• Leverage good relationships with existing high-end clients, providing on-going business opportunities with less sales work
• Enables efficiencies in scheduling, having materials ready; more profit
• Strengthens and builds trade contractor relationship
• Allows for project “bundling” for higher profitability
• Provides more predictable revenue streams
• Leverages existing assets
• Client database
• Trade contractors
• Employees
• Suppliers
• Goodwill

• Creates a documented plan for managing your client’s biggest asset
• Manages the relationship and expectations with your best clients
• Provides a recurring revenue stream
• Identifies future work as far out as three years
• Provides for the optimal allocation of company resources (workforce)
• Allows for the diversification of company products and services
• Provides a business model to build equity in your company
• Creates a client for life

When is the Home Asset Management Plan advantageous?

Now: Handle immediate needs to bring property up to a manageable level
On-going: Handle recurring service needs, provide periodic property assessments and an updated annual plan
Future: Provide up to three to five year project timeline, to be reviewed and updated annually

How do we deliver the Home Asset Managment Plan?

• By meeting with the client(s) to listen and respond to what they want and need regarding their property.
•  By creating a multi-year plan, including short- and long-term projects, that capture the client’s vision, and then executing the plan.
•  By providing responsive service and giving the clients a high priority in attending to their building care needs.
•  By assigning a HAMP manager to each client, removing the client’s need to know which person in the company to call for what.
•  Proactively define short- and long-term projects to meet client’s needs and wants.
•  With ongoing client contact instead of waiting for them to call.
•  By bundling tasks for efficiency, profitability, and convenience.

Where do we deliver the Home Asset Management Plan?

•  In the comfort of our clients’ homes
•  Into the fabric of our company, i.e., where each company member is keeping an eye open to potential new clients and to serving existing clients even better.
  

Compiling the Clients for Life-Home Asset Management Book (HAMP)

The Home Asset Management Book is the result of the joint development program with the homeowner. It is the document that describes the existing condition of their home as well as the action plan that will take care of their wants, needs and vision for the next three years.

The information collected for the book contains the following:

•  Observations on the current status of the facilities and items that might require attention in the coming years. This serves as a reminder to schedule when the appropriate time comes. This is also the location for including any projects that the customer might want to start further out than three years. As a long range ‘vision’ of the facility is developed, it is documented here.
•  Recommendations for both short-term (one year) and long-term projects along with proposed time lines and costs.
•  Complete supporting documentation of the facilities including homeowner information, inventories, energy utilization, floor and lot plans, photos, etc.

Information is gathered in the field by the company and used to develop the detail work schedule for the next twelve months and the future schedule for the larger projects.

Once the homeowner approves the information and plans contained in the book, the necessary contracts are signed and work is scheduled according to the plan. The Home Life Book is reviewed with the homeowner at least once each year to determine what changes have taken place and to develop the plan for the next twelve months. Each year the total plan will be reconfigured to cover three years, with the first year being the detailed action plan for the next twelve months. If there is a project that will start further out than three years, it is noted in the ‘Observations’ section of the book. Once the information is agreed upon, the company will develop the detailed work schedule for the next twelve months and the general schedule for the larger projects that will be executed in the future.

Data Collection

The collection and maintenance of this data is the key to this program. The long-term objective is to enter data directly into a computer or hand-held PDA from the field and transmit data directly from the field computer to the data storage center. In-depth information on each homeowner, their family, house, grounds, etc. will be key components in developing the Home Asset Management Plan for each customer. All staff personnel that visit with the client should be capturing data about clients throughout this developing relationship. This information should be stored in a central database and accessible by all staff on an “as needed” basis.

This database will eventually contain a very large amount of information for each customer. The information necessary to complete the first year’s plan of work should be included in the initial data collected. The objective is to keep the labor cost for data collection under control but have the information necessary to complete the first year of the plan. The type of data gathered for this first phase should include information that is readily available without spending unreasonable time or cost collecting information that will not be used the first year.+

Initial data to be collected should include:

1. Homeowner family information
2. As-built plans and measurements if available
3. Topographical survey if available
4. Information on appliances and systems (ex HVAC, alarm system) that is readily available from invoices, etc. so a person does not have to spend time at the house collecting the information off each of the units
5. Measurements from previous work performed that is available in the company office
6. Measurements necessary to complete the first year of work in the plan other than major remodeling. This would include items such as rooms, windows, doors, etc.
7. Initial photos of rooms and/or areas that will have work done during the first year.

As the program progresses and representatives of the company are at the house on a regular basis, additional information can be added to the database through a systematic process of data gathering. This will reduce the need for sending a person to the house for the sole purpose of taking measurements, photos, etc.

HAMP Notebook

The HAMP Book is made up of the eight sections described below. Its purpose is a relevant reminder and brand instrument for homeowners, as well as a “workbook” for both homeowners and contractors. Everything (almost everything) relevant to the home should fit into this book, at least on an annual basis.

Tabs:

1. Introduction – Explanation of the Home Asset Management Plan
2. Client Information – General information on the home and the clients.
3. Observations and Recommendations – After reviewing the property, the contractor compiles a list of observations and recommendations with estimated costs and contracts for the care and improvement of the property.
4. Photos – This section will include photographs of recommended maintenance and repair items.
5. Plan: Actual – This is the project schedule for the agreed upon work.
6. Contracts – This section includes all executed contracts for the work to be
   performed.
7. Inventory – Provides the information needed to complete the work scheduled for the first year.
8. Communications – All homeowner communication is filed in this section.