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New Home Warranty

| Posted in General Discussion on November 15, 2000 04:25am

*
I am small volume home builder. I currently use a broad brush Home Warranty for the first year after a hmeowner moves in. It basically reads “1 year warranty on labor.” Obviously, there is always something over the course of the year that calls me back.

One of my greatest concerns is having a crack develop in a concrete slab such as a basement, garage or driveway that leads to a customer expecting expensive replacement. I recently learned of another builder being sued for the replacement cost of an entire drive way due what I would consider hairline (1/8″) crack. The builder had offered to replace a 10 square foot section.

My contention is that concrete cracks. I’ve seen huge slabs with zero joints not crack and I’ve seen tiny slabs with several joints crack. It’s voodoo.

Finally, my question: How can I remove concrete from the warranty without putting fear into my prospective clients? And also, what other areas might I consider excluding?

Thanks in advance.

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  1. Michael_Eckert | Nov 09, 2000 02:29am | #1

    *
    Brian,

    I use this line in my warranty. Others may have something better.

     Concrete slabs, porches, walkways, etc. are prone to shrinkage cracks and are not warranted by .............your name here............ except where such cracks have ‘jacked’ or each top plane of the concrete has moved more than 1/4” from each other in vertical height.

    1. B_Novick | Nov 09, 2000 03:00am | #2

      *Brian,I hope you specify some standard as to "normal". We all know concrete cracks, but homeowners see it as shoddy work. The same is true for wood floors. they expand and contract and need space under the base or shoe. Some clients think I'm nuts when I tell them there should be a gap near the wall.I used to deal with an inspector who told clients concrete is only there so you don't have to walk in the dirt.Barry

      1. Gabe_Martel | Nov 09, 2000 04:00am | #3

        *Brian, not all concrete cracks.The best advice I can give you is to follow the route you have already started. Warrantee the labor only. Specify what materials you are going to use and have the owner sign acceptance of the materials including the concrete. Suggest that he have the concrete tested to ensure compliance and leave it at that.Gabe

        1. Dan_Dear | Nov 09, 2000 04:11am | #4

          *Fellas, about 3-5 years after I got into this business, about 25 years ago, I realized that the public is suspicious of contractors, and especially anything that come out of our mouths. So, I changed my "system." I bought presentation folders - at that time about .30 each. Inside there is a partial flap on each page and the right page had a slit for a business card - standard presentation folders.The left side got the Proposal and Specification sheet(s). The right side got what's worth their weight in gold - documentation from accepted industry organizations. In Brian's case, mine would have contained copies (now downloadable) from the Concrete Institute (or whatever it's called) or NAHB regarding the expansion and contraction of concrete slabs in residential applicatons - basements, driveways, monolithic or what ever is applicable. Then during our discussions, I'd bring them out and review them with the client. The also serve another purpose - marketing. Now the client can compare your "anticipated" workmanship AND they also now have justification for your slightly higher price such as control joints, expansions joints, etc. per the CI recommendations in the clients particular application. Caveate - they also make you produce as you should produce according to accepted "proper" standards, which is good. I continue to use them and in fact have bookmarked many associations and other sites by category. Got another job that includes ???????. Just download and print the appropriate "document". By the way, it's another "tool" to make it easier for you, as one hell of a smart person, to get paid for those SCAs. See, while at the very 1st sales meeting this the potential client, you've also brought along 2 or 3 of these to substantiate that youknow what you are taling about. People are more inclined to believe what they can see and read as opposed to what really is just hearsay.Try it.Brian, you blew it. You knew the slabs would crack, but you "assumed" or forgot, the general public, not being professionals in construction, don't. So fo course, their neighbor sees the crack(s), and because you neglected, which is what it is, to educate your client, he's got egg on his face in front of his neighbor, so he gets mad at being embarrassed in this situation. What else can he do?Learn form it and correct this deficiency in your "comunications", and/or sales, and or marketing, "system." In reality, this problem can be included in each "system." Don't be too hard on yourself. This problem is rampant in our industry. Just correct it. As you create these new "systems" on paper, you will realize their tremendous value. See, we're all so busy - not enough hours in a day - that the things we know we should do, fall thru the cracks, and later we pay for it. Hard copy "systems" and a little self discipline, forces us to follow what we know to be good and smart "procedures."My attitude is this. If and when a client complains about dust, I'm happy, actually, I"m thrilled. See, most people don't complain to us. They bitch to anyone else who will listen. Talk about your reputation going down the drain!! But, when the take the time to let us know, wht they are really telling us is this: "You apparently have a failure in your content protection 'system'". I'd rather know that now so I can do too very important things:1. Shower them with whatever come to mind to wsh that dirt out of their minds and replace it with whatever I've showered them with. Now, I'm that good guy. "All we did was complain about a little dust and Sonny......................" WOW2. The made me aware of a problem in our content protection "system" that apparently I dins't know about.So, one minor bad thing - a complaint - was transformed into two positive things - one for me and one for the client, which is really two for me. Do it.

          1. Ronnie | Nov 15, 2000 04:36am | #5

            *Brian,I used to work for a home warratny company. In there manual, which was based on a NAHB residental warranty handbook, stated that concrete cracks would be repaired if they were a 1/4" in vertical or horizontal displacement. Any cracks that were smaller than that were considered a maintanence responsibility to be dealt with by the homeowner. Then it the manual explained how to fix the cracks with conrete caulk. Good luck! I had a ton of these warranty calls and no homeowner wants to hear that their crack is not big enough. Its tough.

          2. Bob_Walker | Nov 15, 2000 04:25pm | #6

            *Sonny makes some good points.I think of it as managing expectations, if you don't make it clear what the customer can expect, there's a pretty good chance they'll expect too much.Bob

  2. Brian_Boyle | Nov 15, 2000 04:25pm | #7

    *
    I am small volume home builder. I currently use a broad brush Home Warranty for the first year after a hmeowner moves in. It basically reads "1 year warranty on labor." Obviously, there is always something over the course of the year that calls me back.

    One of my greatest concerns is having a crack develop in a concrete slab such as a basement, garage or driveway that leads to a customer expecting expensive replacement. I recently learned of another builder being sued for the replacement cost of an entire drive way due what I would consider hairline (1/8") crack. The builder had offered to replace a 10 square foot section.

    My contention is that concrete cracks. I've seen huge slabs with zero joints not crack and I've seen tiny slabs with several joints crack. It's voodoo.

    Finally, my question: How can I remove concrete from the warranty without putting fear into my prospective clients? And also, what other areas might I consider excluding?

    Thanks in advance.

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