Why do Construction Franchises Fail?

Why do construction franchises fail image

According to the statistics provided by the Federal Trade Commission and Qualified Remodeler Magazine, since 2001 home improvement contractors and the remodeling industry are responsible for the largest amount of consumer complaints. Home improvement contractors and construction franchises are responsible for more complaints than used car salesman and mortgage brokers!

Among the shady industry practiced reported by customers are:

  • Unskilled laborers to carry out their work resulting in poor craftsmanship.
  • Low contractor experience in the project or field.
  • Lowball bids to win projects and then jack up the cost later with “overruns.”
  • No designs of customers vision.
  • Lack of credentials – In the survey almost a fifth of general contractors lacked either a state license or the proper insurance, and 9 percent lacked both.
  • No professionalism in initial interview. Too bossy, condescending, or rushed.
  • Failure to provide an estimate in a timely manner.
  • Failure to provide details in writing and/or guarantee their work.
  • Failure to adhere to the agreed upon schedule.
  • Lack of proper operations scheduling resulting in taking longer to complete a project than communicated.
  • They don’t take the time needed to do the job right.
  • They leave the yard and job site a mess, with little to no clean-up.
  • Less involved once the work begins. Customer end up managing project themselves.
  • Miscommunication and mismatched expectations.
All of these factors result in homeowner mistrust of contractors. Not only do these negative actions affect the industry reputation but quickly lead to legal and financial woes that cause construction franchises to fail!

Transblue, a commercial construction franchise, recommends the homeowner do the 4 following steps:

1. Check Credentials

Traditional credentials like the contractors license, certificate of insurance and bonding information should always be checked, and todays online environment allows you to check real-world performance reviews submitted by actual customers.

2. Get References

Good reputation is not an easy thing to build up in a short period of time. It’s a good sign when the contractor invites you to see their completed projects. It’s a good sign when a construction franchise openly invites a customer to look at their website and reviews online.

3. Expect Design Layout

Communication between the design and project management team is important. A construction franchise that provides both the design and construction plan will result in the lease amount of loss in translation, therefore resulting in a project that most closely aligns with your vision.

4. Listen to Your Gut

Developing a good rapport between yourself and your construction team is essential. For example, TransBlue’s communications are enhanced via TransBlue Connect, out proprietary software that allows clients to track scheduling, payments, change orders, and more!

Why Construction Franchises Fail Image

At Transblue, we have been delivering World Class General Contracting and Design/Build Remodeling for 15 years. We have met with countless homeowners who have been the victim of a poor construction franchise job. A little bit of research goes a long way, especially in the newly digitized commercial construction industry!