Home builders that are implementing quality assurance programs are reporting greater returns on investment, reduced liability costs, higher referrals, and fewer warranty claims.
At the Energy & Environmental Building Alliance (EEBA) High Performance Home Summit in October 2018, high performance and healthy home manager at Thrive Home Builders Nathan Kahre and Glenn Cottrell, Managing Director of consulting firm IBACOS that helps production builders create and implement QA programs, taught a seminar on the value of quality assurance programs.
Kahre highlighted the point that QA programs can help lower insurance rates, noting that within two years of starting its QA program, Thrive saved roughly $150,000 in insurance premiums, and was also able to reduce variance costs by approximately $1,000 per home, translating to another $150,000 saved annually, and cutting cycle time by 27 days.
It's no surprise that builders with formal Quality Assurance programs report fewer warranty claims. For instance, Professional Builder magazine interviewed builders, National Housing Quality Awards judges and QA consultants around the U.S. for an August 2017 article and found that while most builders lack such programs, those who put who them in place get a quick return on their investment. One builder interviewed for the article reported a 70 percent reduction after just a couple of years.