Markham, ON, December 14, 2009 – Constellation HomeBuilder Systems, the largest provider of software for home builders, helps Shea Homes of Walnut, CA boost customer satisfaction to higher levels in 2009 by helping them monitor and improve the new home buyer experience from contract to warranty.

Constellation BuildSERV’s Home Ownership Guide, the 2009 Innovative Housing Technology Award Winner, is used by Shea Homes to enhance home builder-to-home owner communications using  content management services, online messaging and warranty management software solutions throughout all phases of the new home construction process to keep new home buyers informed and engaged both during and after construction.

In the recent 2009 J.D. Power New Home Builder Customer Satisfaction Study reveals that customer satisfaction and new home quality has improved dramatically from 2008.  Shea Homes, Walnut CA performance in this survey was enhanced and strengthened through the company-wide implementation of BuildSERV Ownership Guide.   Shea Homes ranks 1^st or 2^nd in customer satisfaction in all 5 markets where they competed (Phoenix, San Francisco Area, Denver, Inland Empire, and Orange Co/San Diego), and ranks highest in Shea Trilogy Active Adult communities where they compete in 6 U.S. markets.    Year over year, Shea Homes places in the Top 10 for number of homes built each year with approximately 2,400 homes being sold this year.

Shea Homes expanded their commitment to utilize BuildSERV throughout their 11 regions with built-in milestone notification e-mails and web-based appointment scheduling.  Shea Homes expanded from 3 to 11 regions for three principal reasons.  Firstly, BuildSERV helps Shea Homes internally by allowing everyone to upload, share and collaborate regarding the same documents and information for consistency and unification of their branded image in all locations.  Externally, they’re able to proactively communicate with home buyers using milestone-based messaging and appointment scheduling to keep homebuyers informed and positively engaged.  Secondly, Shea Homes tracks and monitors home owner activities and warranty performance with activity timeline reports giving them a clear picture as to how the home owner is learning and using the system while helping Shea Homes meet their legal obligations.  Finally, the implementation process is quick, easy and cost effective so they save time, money and resources.

Once BuildSERV is delivered to the home buyer by CD ROM, web or e-mail, Shea Homes receives campaign management results with reporting on recipients who’ve received, responded to and are using their information and services.  “In essence, instead of delivering the Home Owner’s Manual as a paper 3-ring binder that gets shelved, BuildSERV delivers twelve copies of their Manual electronically during their first two years in their home using BuildSERV’s milestone messaging and web-based Home Ownership Guide”, Chip Pennington, Corporate Director of Customer Service, Shea Homes.

“The next generation of home buyers are expecting more information online, and BuildSERV delivers the effective communication tools they’re looking for with a comprehensive, web-based Home Owner Manual, providing quick and easy access to regular updates about their home and enhanced information services to create better home buying experiences,”

- Robb Pigg
Corporate VP Operations
Shea Homes

Constellation HomeBuilder Systems is the largest home building software supplier helping builders manage their information technology costs with cutting-edge, integrated software solutions to run their businesses more effectively.   Constellation continues to invest in new products and services, while providing regular updates  to keep builders current with today’s technology trends. 

Constellation HomeBuilder Systems (“CHS”) is a division of Constellation Software Inc. (“CSI”), and is a publicly traded company.

About Constellation HomeBuilder Systems

As the largest home building software company in the industry, Constellation HomeBuilder Systems has helped more than 2,100 builders manage their information technology costs with integrated software solutions to run their business from dirt to warranty. From planning to homeowner services, we have land development software, new home sales and marketing software, production, purchasing, scheduling, accounting, warranty, electronic homeowner manuals, vendor portal solutions, and web site solutions designed exclusively for the home building industry.

Media Inquiries
Cathy Kotsopoulos
(888) 723-2222

With the HST announcement by the Ontario government in March the great unknown was how this would affect our clients?

I have attended the various seminars and workshops put on by the OHBA and BILD hoping to get definite answers to all my questions as to how the HST will be applicable to Homebuilders.  At these sessions there have had experts from both the private and public sectors.

I did get some information but all the rules have not been defined by Canada Revenue Agency or the Ontario Finance department.

Things You Should Know about HST – HST will be implemented on July 1, 2010

According to the Ontario Ministry of Finance the HST will be revenue neutral.  It will reduce the amount of tax paid by Ontario businesses.  That prior to the announcement there was a 2% o 3% RST (Retail Sales Tax) component already factored into the Home Sales price.

To take the Ontario New Housing Rebate the house must be the Primary residence.  The same rules and conditions as the GST rebate.  If the sale is “grand- parented” then there is no Ontario New Housing Rebate.  The Ontario New Housing Rebate can be claimed by the Home Buyer or can be assigned to the Builder.

For the HST rebate calculation the existing GST rebate remains unchanged.  For the Provincial portion of the HST the rebate will apply to the first $400,000 of the purchase price.

With the “Grand-parented” sale the Home Buyer does not pay the HST only GST.  But the Builder is able to claim the Input Tax Credits on all costs paid after July 1, 2010 related to the house construction.  The Builder will pay 2% of the selling price times a factor based on percentage of completion on July 1, 2010.

One of the changes with the HST implementation that the Builder must be aware of is Disclosure.  What I mean by this is that the Builder must disclose if the Agreement of Purchase and Sale was signed between July 19, 2009 and June 30, 2009, whether the 8% Provincial component of the HST applies and if the purchase price is net of the New Housing Rebate.  If this disclosure is not made then the Purchase Price is deemed to include the 8% Provincial component of the HST.

A builder is considered a large business (annual sales above $10 million) then the PST component for the Energy (i.e. Gas, Electrical), Telecommunications (excludes internet services), Vehicles and  Food, Beverage & Entertainment  will be restricted from applying for the Input Tax Credit on the PST portion only.

Now that the housing boom is behind us and the entire industry is dealing with a new reality, managing warranty and service costs is very important. In this session, we’ll show you how many builders have reduced their warranty and service costs, and improved customer satisfaction and referrals with small investments in online homeowner manuals, maintenance guides, newsletters and service request portals.

Slides

Audio

Video

Similar to the Large Builder Roundtable this group provided an inside look at small and medium sized builders discussing the recent stimulus programs, selling new homes, doing more with less, implementing software systems, working with trades and suppliers, vendor portals, home builder websites, and the impact of green building on home builders. Each builder describes their experiences dealing with conditions in their market and how they use technology and processes to do more with less.

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Video

All Constellation customers have received invitations to our upcoming virtual user conference.  If you have still not registered, please do so using the links below.

Constellation HomeBuilder Systems is pleased to invite you to our first ever, Virtual User Conference on March 23 through March 27, 2009.

Join us for this FREE event in the comfort of your office, or any location with an internet connection and a phone.

Hosted by our BuildSoft, Builder 360, NEWSTAR, FAST and Constellation CRM (formerly “CFT”) product families, these series of webinars will include valuable product update sessions, industry best practices, and home builder roundtable discussions.

Delivered by Constellation experts and guest speakers, you will learn about new product enhancements, upcoming events, industry best practices, trends in the customer base, and opportunities to help you get the most out of your software system.

Product Update Sessions

On March 23rd at 1PM EST, we will be hosting the following product update sessions. Please register for the product update session of your choice using the links below.

– FAST

– NEWSTAR

– Builder 360

– BuildSoft

– Constellation CRM

Industry Best Practices and Guest Speakers

Lead Qualification and Sales Best Practices Ross Robbins – Shinn Group March 24th at 1 PM EST – Today’s home buyers are fearful of making a buying decision and consumer confidence is at historic lows. We as sales people must do all the heavy lifting to get them to want to buy. The key to this is repetitive contact and building a trusted relationship to enable them to take action without regret. This means using your system to its fullest to keep in touch with the prospect. None of us can remember all the details and the necessary follow-up schedule. This session will explore the reasons for the fear, despite the great values in the market, and justify the use of valuable tools you may already have to make high tech equal high touch.

Online Homeowner Warranty and Maintenance Brad Brickman – Constellation HomeBuilder Systems March 25th at 1 PM EST – Now that the housing boom is behind us and the entire industry is dealing with a new reality, managing warranty and service costs is very important. In this session, we’ll show you how many builders have reduced their warranty and service costs, and improved customer satisfaction and referrals with small investments in online homeowner manuals, maintenance guides, newsletters and service request portals.

Implementing a Purchase Order System Craig Schweikart – Constellation HomeBuilder Systems March 25th at 1:30 PM EST – Many builders, both small and large, can achieve cost advantages and improved forecasting using purchase orders. In this session, builders will learn how to reduce costs as a result of issuing purchase orders and paying trades without relying on completion slips and invoices. Even if you are already using purchase orders for your trades, this session will provide additional opportunities for process improvement.

Get the Information You Need from Your Accounting System Felicia Malter and Steven Hays – RubinBrown March 26th at 1 PM EST – As a follow-up to our Coping with Financial Distress webinar from last August, this session will help Canadian and US builders identify how to analyze those ratios that are the most important in running their business. Using the information from your accounting systems can help you improve your bottom line and increase your profits. In addition, timely communication to lenders from from their builders will help ensure viable financing solutions. Steve Hays and Felicia Malter, Partners in the Home Builder Services Group at RubinBrown LLP, will also share some information about what financial reporting might look like as we prepare for better times.

Builder Roundtable Discussion

On March 27th at 1PM EST, we will be hosting the following builder roundtable discussions. Please register for the session of your choice using the links below.

– Small Volume Builders and Remodelers

– Larger Volume Production Builders

Additional Information

Register now, or contact
Cathy Kotsopoulos via email or by phone at (888) 723-2222 x6140.

The most recent edition of Green Builder Magazine has an interesting article about Constellation BuildSERV and its ability to help builders better manage home owner warranty and service.  With electronic media, e-mail communication, and internet websites, builders can provide better information related to warranty guidelines and home maintenance.  BuildSERV helps builders communicate with new home buyers as generation X, Y and millennials would expect.

“Homeowners using a web-based portal to access information reduces the need for a paper manual and the related environmental costs,” says Brad Brickman. “The exciting story is our ability to use the web and e-mail to build an ongoing relationship with the homeowner – to update and deliver maintenance and product information on the specific products in their home.”

The full article can be found on page 42 of the December 2008 issue.

It can be downloaded from the following location.

http://www.greenbuildermag.com/files/current_issue/gbm_122008.pdf

As you prepare and finalize your budgets for 2009, we wanted you to be aware of the following solutions that we have enhanced or released in the previous year.

We are also announcing an exciting 30-minute webinar series that can help you with the following:

• Reduce production costs
• Improve management insight
• Build stronger customer relationships
• Work more efficiently with suppliers and trades
• Maximize upgrades on each sale

Sales and Home Buyer Solutions

Constellation BuildSERV’s hosted document library and online collaboration systems help builders manage home ownership documents and related warranty information. Our comprehensive services ease the task of organizing and compiling home ownership guides, and provide a method for delivering and tracking important buyer communications.


– Tues. Nov. 11 @ 2PM EST

Constellation HomePlate – Home Buyer Portal

Constellation HomePlate offers home builders a secure, web-based portal for their homebuyers and homeowners from contract to post-warranty. It’s designed to deliver instant information to your customers anytime, anywhere.


– Mon. Nov. 24 @ 2PM EST

Constellation Online Virtual Showroom

Constellation Online Virtual Showroom is a web-based lead generation tool that creates qualified prospects through unique visualization technology. Visitors to your website can mix and match exterior and interior colors and materials and see their choices instantly rendered on photographs of your model homes.


– Tues. Nov. 25 @ 2PM EST

Constellation CRM

Constellation CRM is a comprehensive suite of customer relationship management solutions for all sizes of home builders. Designed to help improve customer communication, options selection, and upgrade sales, now is the perfect time to take a look at Constellation CRM.


– Tues. Nov. 18 @ 2PM EST

FAST E-Leads and FAST Sales

FAST SALES and FAST E-Leads arms your sales team with the advantage they need to close the sale. FASTSales helps you streamline your sales process by automating follow-up and leveraging process-based workflow. With every sale a precious commodity you need a sales system that provides flexibility while maintaining accountability, that is FASTSales.


– Thurs. Nov. 20 @ 2PM EST

Constellation CRM Design Center

Constellation CRM Design Center provides your design staff with the tools to quickly, accurately and profitably prepare complex measured goods configurations, such as flooring or custom countertops. If you are looking to maximize the profits from your dedicated Design Center, now is the time to consider Constellation CRM Design Center.


– Wed. Nov. 12 @ 2PM EST

Construction Management and Communication Solutions

Constellation FOCUS is an integrated, web-based Business Intelligence (BI) solution designed to improve business performance through monitoring and proactive exception-based reporting. FOCUS can easily distribute pre-configured reports and notifications to suppliers, managers, employees and other business partners.


– Wed. Nov. 19 @ 2PM EST

FAST Insight

FAST Insight helps you to make the critical business decisions necessary in today’s economy on a daily basis, FASTInsight provides dashboard level views and detailed decision support in real-time so you can make those decisions with confidence. Know in an instant your financial and operational health with FASTInsight.


– Fri. Nov. 21 @ 12PM EST

Builder 360 – JobView 360

JobView 360 is a secure web-based project management solution designed exclusively for home builders to powerfully advance the flow of communication and develop reliable, partnerships between trade partners, subcontractors, and homebuilder employees.


– Mon. Nov. 17 @ 2PM EST

Constellation LandDev

Constellation LandDev supports detailed and summary level budgeting, estimating, bidding, contracting, and payment processing with user configured authorization processes. Find mistakes on paper before they happen in the field and become too expensive or too late to fix. LandDev allows users to eliminate the paper chase with workflow technology that sends e-mail messages to targeted individuals for budget approval, change order approval, payment approval and notification, as required, leading to an unprecedented control of cost and schedules.


– Mon. Nov. 10 @ 2PM EST

OnLocation-Schedule

OnLocation-Schedule is an award-winning, fully-integrated, wireless software application designed to meet the needs of field staff, home builders and suppliers. This easy-to-use application offers effortless monitoring and tight control of construction schedules and payment processes, while improving the efficiency of supplier communications.


– Thurs. Nov. 13 @ 2PM EST

PocketFAST

PocketFAST works seamlessly with your FAST schedules to extend the benefits of an integrated management system to your production line. Field managers and vendors will be more efficient, more effective, and more accurate with PocketFAST, providing essential, time sensitive information throughout your organization, as it happens. That’s what you should expect with an enterprise system, and PocketFAST delivers.


– Thurs. Nov. 13 @ 2PM EST

Constellation BuildPro

Constellation BuildPro is the leading, integrated, scheduling and vendor collaboration system utilized by home builders to effectively manage tight construction schedules and improve homebuilding efficiency. Over 10,000 builders and suppliers are using BuildPro and SupplyPro to help build thousands of homes more efficiently, communicate more effectively, and build stronger trade relationships. As an internet solution, the system is always available in the office, at home, or in the field.


– Fri. Nov. 21 @ 2PM EST

New Product Preview

OnLocation-ConstructionManager allows you to schedule jobs, control payments, control production quality, and communicate with trades. With real-time exception control and quality monitoring, you can identify quality issues before it’s too late or too expensive. Your superintendents and quality control staff can quickly run though a checklist and identify problems. Not only are the problems identified and stored in NEWSTAR Enterprise, but you can take photos with your mobile device for management oversight and supplier communications. These photos serve as a record of deficiencies for suppliers and trades and ensure that everyone has the ability to see problems when they occur.


– Thurs. Nov. 20 @ 2PM EST

OnLocation-DesignCenter

OnLocation-DesignCenter is an integrated software application that helps design center staff easily manage options, upgrades, and color selections and maximize home builder design center profitability. Using a barcode scanner, options, upgrades, and colors are easily captured and recorded in NEWSTAR Sales. From there, design center staff quickly generates the contract addendum and present it to the customer for approval. Design center staff no longer need to waste time keying product codes into the system while the customer waits.


– Fri. Nov. 14 @ 2PM EST

Additional Information

If you have any additional questions, please contact Cathy Kotsopoulos at (888) 723-2222 or via e-mail at ckotsopoulos@constellationhb.com.

Thanks to everyone that attended our session on Coping with Financial Distress.  If you were unable to attend, you can view the recording at the link below.

Online Archive – Coping with Financial Distress

As a key partner with many home builders, Constellation is please to provide over 1,400 builders with one or more homebuilding software solutions.

We appreciate the assistance of the NAHB Builder Management and Information Technology Committee and the contributions of each panelist.

Financial Services – Moderator – Ron Robichaud
Robichaud Financial Services
LACONIA, NH
(603)293-2332
ron@robichaudfinancial.com

Banker – Panelist – Tom Flowers
Leawood, KS
(816) 522-1034
tflowers392@yahoo.com

Restructuring – Panelist – Troy Taylor
Algon Group
Atlanta, GA
(404) 423-8086
troy@algongroup.com

Builder – Panelist – Randy Noel
Reve Inc.
LaPlace, LA
(985) 652-4663
REVEDEV@aol.com

Lawyer – Panelist – Harley Riedel
Stichter, Riedel, Blain & Prosser, P.A.
Tampa, Florida
(813) 229-0144
hriedel@srbp.com

Customer touch-points can be mastered with Constellation HomePlate.  A touch-point is defined as all communication, physical and virtual interactions that home owners experience during the relationship life-cycle with their home builder.  Constellation HomePlate has become the key element for improving

• Customer referrals
• Customer communication
• Customer satisfaction
• Customer experience
• Customer loyalty
• Brand perception
• Sales and profitability
• Market share

Every home builder understands the value of having a truly satisfied customer talk to others about their great home buying experience.  HomePlate helps you generate homebuyer referrals.

Want to Learn More?
For more information, or to schedule a free online demonstration of this solution, contact Constellation Sales at (888) 723-2222 or sales@constellationhb.com.

About Constellation HomeBuilder Systems
As the largest home building software company in the industry, Constellation has helped more than 1,400 home building companies manage their information technology costs with integrated software solutions to run their business from dirt to warranty. From planning to homeowner services, we have land development software, new home sales and marketing software, production, purchasing, scheduling, accounting, warranty and homebuilding vendor portal solutions designed exclusively for the home building industry.

Media Inquiries
Cathy Kotsopoulos
ckotsopoulos@constellationhb.com
(888) 723-2222

In a world of political correctness who would guess that something as seemingly innocent as calling warranty “customer care” could have negative repercussions? Certainly not companies striving to please customers. But builders should consider at least three points before naming their warranty department the customer care department.

Big Picture Implications
The old adage “Customer service is an attitude, not a department” applies. Having a department named “customer care” (or for that matter, “customer service”) implies to the rest of a company’s employees that customer service is the responsibility of the Customer Care staff.

Service responsibilities and skills should be part of every job description in the organization. Precise performance standards for service should be integrated throughout each step of the experience, should express the integrity of the company, and should impress customers with its energy and attention to details. While these goals are certainly appropriate targets for the warranty staff, sales, mortgage, selections, construction, and closing personnel should share the same objectives.

Homeowner Expectations
Customer care implies great flexibility – a nurturing, generous, almost limitless package of services. This subjectivity is built into the title customer care. Homeowners are likely to expect service based on their personal standards and wishes.

What actually follows in most cases is warranty service based on the company’s limited warranty guidelines and practices. Many points are non-negotiable and measurable standards are often applied. This objective approach contrasts sharply with the implications of the friendly name. A soft name does not guarantee that homeowners will hold a high opinion of warranty service any more than a bouquet of flowers will convince a buyer that his home is complete when it is not.

“New Home Warranty Department” on the other hand implies a black and white set of repairs are available for a specified amount of time. Still, nothing in this name prohibits a builder from considering individual circumstances and making common sense exceptions when appropriate. Written warranty guidelines are a starting point – subject always to sound judgment.

More is gained if the builder retains control from the beginning instead of attempting to take control back from homeowners who expected “customer care” – not just warranty service. When a warranty office begins with black and white guidelines then makes appropriate exceptions, it can be a hero to many homeowners. Conversely, starting with an undefined “customer care” image often leads to hostile opinions from homeowners when warranty requests are denied.

Survey Savvy
Many satisfaction surveys include questions about customer care – intending to gather feedback about after move in services. Builders logically interpret responses to these questions as an evaluation of the warranty person or department.

Meanwhile, customers see a company’s service as a fluid component, coming from all personnel and all directions, flowing in and around the transaction from start to finish. Unless the questionnaire clearly identifies warranty service, the customers’ ratings may be a reflection of service from other departments: Phone calls not returned by sales? Pricing information slow to come from design? Lack of empathy from the field staff? Trade contractors eating lunch in their under-construction home?

Frustrated warranty personnel often lament low ratings from survey respondents who have never contacted the warranty office. Imagine the effect of this if those same warranty personnel work under an incentive program and this confusion is costing them bonus money.

Referring to warranty as “warranty” both on the organizational chart and in satisfaction questionnaires reduces the chances of such confusion and misinterpretation. Survey questions should ask customers to rate the service of each company function from sales through warranty. Feedback then provides more accurate indicators of where improvement is needed.

A rose is a rose is a rose… but “customer care” and “warranty service” are not interchangeable names.

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About Carol Smith
Carol Smith offers customer service assessment, consulting, and training programs for home builders. For more information, visit www.cjsmithhomeaddress.com.