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Property

Is Lean the new tightly managed way for the Construction industry to progress?

After the Wembley stadium cost and timing overruns and escalating cost predictions for the 2012 London Olympics it’s no surprise the construction industry has a reputation for not meeting deadlines and busting budgets.

Now Yorkshire-based project management company Barlows has set out to dispel this perception for its high street retail customers. The implementation of Japanese inspired ‘lean’ principles (see below) has transformed the way Barlows operates, resulting in significant, tangible time and money benefits for customers.

When sports giant JJB began talks with Barlows to discuss the delivery of its new fitness centres, it was stunned when the project management company stated that it could reduce the current programme by as much as 25 per cent. The new £1.7 million centre opened last month and true to its word, Barlows handed over the keys four weeks earlier than originally timetabled.

Providing leading retailers with store delivery and fit-out programmes that minimise the amount of time their doors are closed for trading, and how quickly they can be up and running in a new location, is underpinned by the quality finish consumers expect.

Tom Ward, property development director at JJB commented: “I am impressed at how quickly and professionally the project progressed. This is the first project we’ve undertaken in partnership with Barlows and its project management and translation of the new concept has been remarkable. We are continuing to expand our health club and retail outlets over the next 12 months, and based on the speed and high quality of the finish we look to work with Barlows again.”

Barlows’ managing director Lee Walker said: “The image of the construction industry desperately needs an overhaul and Barlows is striving to achieve that. The success of our JJB project is a prime example of how construction and refurbishment can be undertaken successfully, reducing the downtime for the client, finishing on budget and importantly, not compromising on quality.

“We are currently working with other leading retailers to provide them with the same level of service. These include Marks & Spencer, McDonald’s, BP and BAA."

For further information on Barlows visit www.barlowgroup.co.uk or call 0114 280 3000.

Lean principles in a nutshell
Lean construction has been described as “a continuous process of eliminating waste, meeting or exceeding all customer requirements, focusing on the entire value stream, and pursuing perfection in the execution of a constructed project.”

By planning ahead it can be ensured that there isn’t too much of anything on site, in terms of both materials and labour. Lean planning provides hour-by-hour site programming, providing subcontractors with specific time allocations for their work.

In doing this, production can be streamlined, reducing both costs and time. Note that costs are not reduced by doing anything on the cheap, but by cutting out all waste. That way the quality of the finish is never compromised.

At Barlows lean principles were introduced two years ago, which meant that a complete overhaul of the business process would be required. The business had been a shop fitter in the traditional sense of the word for nearly 130 years, but the company has been restructured from being a contracting-based company to one that focuses on project management.

The change of business emphasis was seen by some as radical. But managing the process from conception to completion has meant speaking to customers at a much earlier stage in the process - absolutely necessary to ensure that lean principles are implemented at every stage. The customer has an idea and Barlows can design it, deliver it, project manage it - and also maintain it.

By implementing lean principles the time that the store is closed can be reduced on a standard programme by up to 50 per cent. From a retailer's perspective, this is crucial, because if the work can be completed two weeks faster, the retailer will have two weeks worth of extra trading plus minimise customer disruption.

One of the main ways in which lean principles can be implemented is by developing a culture of communication. To ensure that everyone understands where they fit in, team briefings and workshops with all staff are essential. Whereas in the past, customers have been seen as a problem, with Lean techniques employees can focus on customer outcomes.

Because employees are stakeholders in a business, it is important to recognise that they are a captive audience internally. A challenge may lie with sub-contractors – for example decorators, floor layers, and joinery companies – to care about a company’s objective of opening stores quickly. For lean principles to be as effective as they possibly can be, everyone has to be involved.

Subcontractors must buy into the vision in the same way that employees have. And it’s not just sub-contractors; it is necessary to engage with customers on an entirely different level, through collaborative workshops to dissect existing programmes and to devise new methods and materials for delivery. The implementation of Lean is only possible through this comprehensive partnered approach.

How to Simplify the Process of Selling a Home

Admit it for years, or even decades it has truly been your home sweet home. And now, you refer to it as a plain property to sell.

Selling a home need not be a bitter encounter. We should healthily treat it as a source of marketable commodity, a money-generating property, a real estate. We should see our property as not just a plain house or a shelter, but as a fortress! In selling a home, we should also let other people (especially prospective buyers) get the same home sweet home experience we had.

One good move in selling a home is to first cut off your personal attachment from it. Have it ready for others to see and in time, theyll consider buying it.

People usually are not looking for big houses. They might consider the size more important if they have a large family, but most probably theyll look for the comfort and homey feeling it brings. In selling a home, remember to restore its best features just like the way it looked when you first stepped in.

Remove all posters and frames of photos and de-personalize before selling a home and presenting it to prospective buyers. Make sure you have a final walkthrough to see if all personal memorabilia has been removed. Then try to see the parts of your home that need some re-conditioning.

Removing all the clutter is also a major step in selling a home. Sadly though, this part is also the hardest to do for homeowners as they have become emotionally attached to it. On the part of the buyer, seeing clutter is a very negative thing that will drive them away from the idea of buying. In selling a home, highlight all spacious area of the house and clear away all visible clutter.

In selling a home, you will most likely meet two types of realtors. Realtor Type #1 will present and come up with prices much lower than what youve estimated and will strongly strengthen their statements with sales records of homes similar to yours. Then here comes Realtor Type #2 who perfectly agrees and matches with how much value you are expecting to get, or sometimes they may even declare a higher value. Study their Competitive Market Analysis before you decide.

With the few tips provided in this article you CAN get started. Review your plans, pair up with the right realtor, and in just a short time you will feel much more comfortable in buying and selling real estate.

First-time buyers break the bank

With house price inflation still running at around 8.9 per cent and interest rate rises having little effect on house prices, significantly more first-time buyers are prepared to take greater financial risks to buy their first home.

Some of the potentially risky measures include taking out mortgages based on more than five times their salary, taking the mortgage out over more than a 25-year term and risking interest-only loans.

Home loans spread over more than 25 years to make the monthly payments more manageable are no longer scaring the majority, despite the resulting huge increase in the amount they will have to ultimately pay back.

A new study has revealed that only 20 per cent of first-time buyers would shy away from a mortgage which took longer than 25 years to pay off. The research featured in Yorkshire Bank’s latest housebuyers report also found that just two out of five (39 per cent) would rule out a home loan that was five times their income and nearly two in five (38 per cent) would now take out an interest-only mortgage.

Gary Lumby, Yorkshire Bank’s head of retail, says, “With the average house price nearing £200,000, this year may feel like the last chance saloon for first-time buyers already finding it hard to buy. 

“Two rate rises last year did little to slow house prices and it looks unlikely this latest rise will have any significant impact either. Therefore, their fears are the longer they leave it to buy, the harder it will be.”

In order to try to get on to the property ladder before prices become totally out of reach, first-timers are taking greater financial risks that may put their future in jeopardy. “Saddling themselves with such huge debts isn’t wise as they could still be paying off their mortgage well into their sixties or even seventies,” says Lumby. “They may also face breaking point should interest rates increase again. Unfortunately for some, they feel it is their only option.”

The study also found that desperate times are leading to desperate offers. With fewer affordable properties on the market for first-time buyers, more than one in four (28 per cent) of first-time buyers are so determined to buy sooner rather than later that they are prepared to offer above the asking price straight away on the house they want. This is up from 19 per cent last year and is far greater than the 12 per cent of existing homeowners currently willing to pay over the asking price.

Although first-time buyers may find themselves fighting over property, they should be wary of offering above the asking price. Although prices still look set to rise this year, the last rate rise may markedly slow things prices down, says Lumby. 

He adds, “If things do ease off, then it could take them longer to make a profit on the property they are buying.”
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