Tag: building business systems

Your First 3 SOPs: What to Systemize Before You Scale

TLDR: Don’t build a bigger business on a broken foundation. You may say “duh” to some of these things… but if any of them are EVER missed…something could be better… this quick guide will help you take full control.

Most builders think scaling starts with better marketing or more leads.
But here’s the truth:
More jobs will break your business if it’s held together by memory, sticky notes, and 6 a.m. texts.

Before you worry about getting more, let’s get your business ready to handle more.
Here are the first three SOPs (Standard Operating Procedures) every custom home builder should lock in before they scale.

SOP #1: The Job Start Checklist

Why It Matters:

The chaos you deal with at the end of a project?
It usually started in the first 72 hours.

When every job starts differently, you’re relying on memory instead of systems. That leads to confusion for your team, frustration for your clients, and rework that cuts directly into your margins.

✅ What To Include:

• Pre-construction meeting with project manager, client, and/or superintendent
• Permit confirmed and posted
• Dumpster, porta-john, temp power installed
• Site secured (fencing, signage, locks if needed)
• Materials staged or delivery dates locked in
• Full job folder set up (plans, budget, contact info)
• Job start email sent to client with expectations and communication cadence

⚙️ How to Implement It:

1. Use a simple Google Doc or template in your project management software.
2. Assign ownership — usually your PM or lead super.
3. Review the list during your internal job kickoff meeting.
4. Require a photo checklist to be completed and uploaded to the job file.

Pro tip: Have your PM take a 3-minute video walking the site at Day 1. It becomes your baseline reference in case of damage, sub disputes, or delays.

SOP #2: Weekly Job Update Protocol

Why It Matters:

Clients don’t ghost you when they’re happy — they ghost you when they’re stressed and feel out of the loop.

One of the biggest stressors for high-end clients is a lack of communication. And most builders overpromise, under-communicate, and hope the client doesn’t ask too many questions. That’s a recipe for micromanagement and bad reviews.

✅ What To Include:

A templated weekly update sent to each client with:

• Summary of this week’s progress (bullet points, not paragraphs)
• Updated job photos (before Friday so they can show their friends over the weekend)
• Any delays or material issues
• What selections or approvals are still needed
• What’s coming next week
• Open questions or change orders pending
• Updated completion date (or confirmation that it’s still on track)

⚙️ How to Implement It:

1. Use a shared template in Google Docs, Notion, Buildertrend, CoConstruct, or even email.
2. Set a non-negotiable deadline: “All job updates go out by Friday at 2 PM.”
3. Add a recurring calendar reminder for your PMs.
4. Review a few of them yourself to ensure quality tone and professionalism.

Pro tip: Keep a “communication log” on each job. If a client ever says, “You never told me that,” you have a clean record.

SOP #3: The Change Order Process

Why It Matters:

The average custom home has 25–50 changes from the original scope.

Most builders handle these like this:

• Client asks for something
• You say, “Yeah, we can do that.”
• You forget to document it
• Weeks later, your team installs it, but nobody billed for it
• Profit margin? Gone.

A good change order system does two things:

1. It keeps you profitable
2. It protects the relationship

✅ What To Include:

• Client request format (email, portal, or official request form)
• 48–72 hour turnaround time for pricing
• Documented scope of change
• Cost & time impact clearly laid out
• Client approval (digital signature or signed PDF)
• Work doesn’t proceed until it’s approved
• CO tracked against original budget

⚙️ How to Implement It:

1. Create a standardized form (Google Form, Typeform, or inside your PM software).
2. Train your team to never agree to a change on the spot. Instead, say:
   

   “We’d be happy to explore that. Let me get a change order started and we’ll send you pricing.”

3. Batch COs and review them every week in your internal team meeting.
4. Use unique CO numbers (e.g., CO-001, CO-002) to keep clean records.

Pro tip: Build a CO tracker spreadsheet. At any point, you should be able to tell:

• How many changes have been requested
• How many were approved
• Total net gain/loss from changes

Extra Pro Tip: Start tracking CO’s for TIME today… if you don’t know why this is important… just ask. 

The Real ROI of SOPs:

These 3 systems alone can:

• Save you 5–10 hours/week
• Reduce project overruns
• Increase profit margin by 5–15%
• Lower your stress and client drama

But more importantly…
They give you options.
You can delegate, grow, or even exit one day — because your business doesn’t just live in your head anymore.

✅ Next Steps:

This is just one part of the 3 Laws and 9 Levers of the $20M Builder Triangle – want to watch the whole training that was previously reserved for my private clients?

👉 [Watch The Training]

Always in your corner,

Rodric