Hunt Companies, Inc. (HCI) is a general contractor. HCI has been building and remodeling fast-food restaurants for the past 30 years. Two years ago, HCI added a residential division. Residential construction is very different than commercial, in that clients are more “finicky” and change their minds more frequently, leading to a lot of re-work and punch list issues. At the end of each project, the project manager walks through the jobsite with the customer to make sure everything is done according to the customer’s desires and nothing is missing/ wrong/ unfinished. Any items that the customer claims must be done before the project is truly complete go into the punch list. The crew goes back to the site and addresses all the items on the list, at which point we consider the job 100% done.
Since the crew at HCI has been focused on commercial projects up until recently, they tend to often cut corners and “get away” with not following the specifications to a “T”. This has become a problem in the residential business, directly affecting the residential division profitability. When workers have to go back to fix things that should have been done correctly in the first place, it costs the company their time and the extra materials needed. Moreover, customers are disappointed to find problems in the project, which decreases goodwill and HCI’s ability to build strong customer relationships.
As there are many steps in a construction project, for simplicity, rather than examining the