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The Contractor Coaching Partnership Blog

Perfomanced Based Contracting, A new standard for contractors

Posted by Mark Paskell on Mon, Aug 03, 2009 @ 09:19 PM

The societal demand for green products and services is opening the doors to many new opportunities for the residential construction industry. Consumers are educating themselves in record numbers and more often than not, will have as much and sometimes more, up to date knowledge than contractors. Consumers are keenly aware and interested in the ROI of any green energy improvements and remodeling investments they will make on their home. They are profit buyers, who are demanding to know that improvements have value and pay back.

With that said, how can a contractor show that they have the technical expertise and training to win the confidence and trust of the consumer?   

One way is to practice Performance Based Contracting. For example on an exterior improvement project with insulation, windows and siding, during the design process or before a project is installed, perform a building envelope test to determine energy loss. Then after work has been completed perform a second test to prove to the homeowner that the work substantially improved the energy performance of the home. With the use of blower door technology, infrared and other acceptable methods the contractor who uses these methods will stand out from those who don't.

General Contractors and remodelers can also use these methods for residential additions and whole house remodels.

When replacing a Heating or HVAC system ask your sub to provide Performance Base Testing as part of the project. 

In the near future we will see that the carbon footprint of a house will be a critical factor in determining the selling price of the home. Buyers will ask the real estate broker what is the HERS rating of the home as a standard qualification requirement. Banks will figure out how to properly appraise them. In short, a home with a favorable carbon footprint will be more valuable than those without. 

A new standard for rating the energy greenness of a home is sweeping the industry. It is called HERS or Home Energy Rating System. Consumers are catching on to this standard and are starting to ask if residential contracting work will insure a favorable HERS rating.   

What better way to win the trust and confidence of your customer than to submit to a performance test to prove that your service is worth every penny they invest?

For more information on how to work with a companies who perform audits and HERS feel free to write me a note.

mark the coach