Havoc is created during construction when the sales department is allowed to promise the completion and delivery of individual houses within a housing tract…on specific dates…outside of the construction sequence.
This situation happens on housing tracts priced just below that of individual new custom homes being constructed in the same geographical area. Homebuyers in these new housing tracts are usually professional people or business owners who are sophisticated second or third-time homebuyers…and require a fixed completion date in the sales contract…that results in their houses falling outside of the construction sequence from lot 1 through lot 25…due to delays caused by weather issues, construction problems, and/or subcontractor manpower shortages.
When this occurs…lots 7, 10, 12, 18, and 19, for example, can be accelerated ahead of schedule due to promised fixed dates of completion…throwing the tract housing sequence out-of-sequence.
When housing sales are slow, the homebuilder must obviously do everything possible to make a sale. When sales are good, however, it makes no sense to disrupt the orderly and efficient progression of the construction…which is the underlying economy of production tract housing construction…simply to satisfy an unrealistic sales department.
During good economic times, the construction department of the homebuilder must be the strongest division within the company…to get units built and delivered as quickly and efficiently as possible…with everyone else’s preferences taking a supportive role. Only in this way can the product be turned out in the fastest and best quality manner.
Having subcontractors, tradespeople, and onsite superintendents jumping all over the jobsite to complete houses that were promised out-of-sequence by the sales department…creates a construction scheduling and coordinating nightmare.