Ep.99: The Punch List as a Profit Center with Derek Stone

As he’s stated many times, Tim wants to see punch lists eliminated completely. The punch list can be an invitation for clients to find fault for remodelers. In new home building, there’s a part of the budget set aside to take care of the punch list. It can be a drain on profits.

Usually.

Derek Stone built a business, in part, by completing punch lists and warranty work for other building companies.

In this episode, Derek talks to Tim and Steve about a different side of the building business, and how his systems and training can help your remodeling company.

Derek is the CEO of Stone’s Repair and Remodel in Nashville, TN. Derek started his company as a one-man show in 2011. After working 80 hours a week, for three years, and missing his family, he learned the principle of leverage. He hired his first subcontractor, and within the next nine months, he hired 10. In 2017, he had over 28 subs punching houses for 14 different builders. In those three short years, he went from $68,000 in revenue to 1.2 million. 

About 60 percent of Derek’s business is punch list and warranty work, primarily for new tract home builders. His company also does pressure washing and screen enclosures. He says he’s personally done about 7,000 houses himself. He contracts with local building companies to complete the work. Derek talks about his slice of the building and remodeling business, as well as his approach to systems and training, including:

• How long it takes
• Scheduling his subcontractors
• What he learned from Chik-fil-A
• Creating replicable systems
• Training for skill sets
• Maximizing efficiency
• Working strategically with partners
• His profit-sharing plan
• And more …

If you or your team would like to see examples of his training approach for his sub-contractors, Derek has videos on his YouTube channel.

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