How to Communicate Bad News to Clients
Transcript:
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And if you're trying to play dumb, they'll catch you. >> Oh yeah. >> And that's just going to open up a can of worms for bad relationship for a whole year right now. >> Hello and welcome back everybody. I am Nate joined by Near Burkovvich, the CEO of Soho Construction, and you're listening to the Builder Blueprint podcast. Today's episode, we're going to be talking about how to communicate bad news to clients without losing trust, which is probably one of the hardest
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things uh to learn. And I think it's inevitable with anything. There are three things in life that are always true. We've got death, taxes, and construction delays. >> It's almost always going to happen. Every project you'll find this. There will be something that will be thrown off. There is never always a perfect project even though we try to get as close as possible. So today we're going to talk about some of the experiences we've had solutions that you can bring
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to your clients or if you are the client uh ways that you can manage and set expectations for yourself throughout a project. Uh so let's start it off near we're going to talk about sharing just tough news. So, I guess to frame this, let's say we had a project, something's going on, things running smooth, and suddenly we ran into a wall, need to frame something, plumbing line won't fit, going to have to change order, rework it. How do you deliver that news when you've got a client who's like,
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"Hey, I was expecting this to be done in three weeks from now and now you're saying it's going to get pushed off." Like, what do you do? How do you address that? How do you even try to think about that with the team so everyone's all aligned? Yeah, it's a good question and I guess you're right. There's no clean projects, especially when you're talking about remodeling projects. But uh I think it's al it will all start uh with how you're preparing your client way
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before the project uh starts means that if you do uh foresee an issue or if you do have a protocol in regards to what's going to happen if you see an unforeseen beam or an unforeseen condition within a wall what's the process going to look like and you are meeting with your clients and you're explaining every step of the process okay that's what what I know right let me run scenario with you with your client. If I'm going to open that wall and I'm going to figure out there is an you know what jacked up
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plumbing electrical situation behind I'll come clean call you right away and get you to site or get you enough information for you to understand what is going on and um you know my dad used to tell me when you believe in what you're saying you don't need to give excuses or to apologize. You got to be very clear on what you know, what you don't know. And you can do just as much to get as much of it figured out ahead of time, but at the end of the day, you should feel very comfortable bringing
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your clients to site and say, "Here you here you go. That was go that is what's going on." So, two things. You got to try and foresee it ahead of time and say, "These are problematic walls. I would love to cut the drywall open. Make sure it's happening." And leave the client to decide if they want to do it or not. If they want to do it, you're probably going to be able to give them a more accurate, you know, standpoint of the situation. And if they do not want to do it, here's what's going to happen.
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That's also true to other walls we're not cutting open at the m cutting open at the moment. But it's also for a lot of different things. And you got to be true with your contract and plans. If it was on plans and you missed it, just apologize. Say, "H, hey, I missed it. I'm taking I'm taking on it." You know, even if it's not part of your contract, it's just for me, it's code. You try and take it on. Um, and if it's if it's questionable thing, try and explain why.
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Just just communicate communicate the situation as clean as possible. >> Mhm. And yeah, I I think that's a good answer. I think maybe spending the time a little bit upfront. I mean, that's the most important. You got you got a couple months with the client where you can continue to kind of be guiding them and teaching them and explaining like process and always bring it back to the process of okay, this thing happened. Here's the process we've done the whole time. Okay, here's a problem. We have a
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solution. Here you go. Which options would you like to take? Let's move it forward. And I think when you kind of take a step back and clarify it for people, I think that helps mitigate some of the uh initial maybe sometimes irrational anger and frustration that first comes out. Obviously, I don't think you can expect anyone to get bad news and also just be like that's cool. >> Like like you do have to have some >> you have to come you have to listen, right? But at the same time if you if
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you discussed it ahead of time and it happened then it happened >> right >> you you you both at the as a team you were aware to this the situation might going to happen >> and it happened >> you didn't know that they didn't know that everybody got the option to inspect it ahead of time or to be as detailed as possible but you're always going to come up with something. It's just a matter of like uh you know being pleasant and and come clean and explain and hope for the
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best really. >> Now would you say it's the same thing because there's tons of different different instances where this happens. There's the obvious uh oh it's behind the walls is different. It wasn't what we expected. This is wasn't included. Y right. Uh how would you handle the same thing if let's say they have a $10,000 glass table. Our guys there just to paint, touch up, slips, drops, ladder lands on it, shatters it. How do you handle that? Or throws away uh range
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that we weren't supposed to. >> What do we What do we do? >> That's on you, dude. That's on you. You should That's a cost of doing business. You know, you the the the uh first of all, report right away. You know, don't wait with it. Report. And while reporting, even if it's painful, right? It's your wor about your grandfather's ash >> on this table that you just broken and and that's that's even personal and emotional and there's no number to it.
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Just explain what happened. >> Tell the truth >> and and right away tell them it's going to be on me to repair whatever it takes. And that will give you better results than try and argue and give excuses and blame, you know, earthquakes or the letter or the wall or the painter. Mhm. >> The painter is you, you're the painter, you're and and that's that's the situation just uh happened multiple times with us, right? And we always doesn't matter. We always we made sure
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the clients are not the one usually paying for it >> unless it's uh not clear or stuff. But if you broke into, you know, if you if you damage their property, >> it's on you. >> Just report, offer a solution or compensation and and move on. >> Yeah. I think there's um a really great book written about this exact same topic of like it's extreme accountability, >> you know, and I don't know if it's a book or it's just a guy who speaks on it. Um but he always says like that same
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thing and that the power it actually gives you in conflict and also in resolutions and just moving forward is like when you just take on extreme accountability and just say it doesn't matter if it was maybe the painter an earthquake whatever it was it happened it was my project it was my job and I think when you bring that to somebody and deliver that news with this is what happened I'm responsible for And then they can decide, you know, who's really responsible or whatever. But, you know, and figure it out. But
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when I think when they when you come with that, it kind of shuts down all the arguments, all the guards. I agree. >> Yeah. I think they go, "Okay, well, okay, now what?" You know, >> that's so right. Every time I tried it, every time I said my fault in my whole life, doesn't matter what what it was, it opened it opened a door for me for better communication. And actually when you're saying my fault, then the clients are trying not to go not trying to bully you and say, you know, blah, and start
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yelling at you and be pissed with the solutions you offer. Usually, they're actually getting softer. They're coming up and say, "Hey, don't worry about it. Let's uh let's work something out." That's actually the end result. You want you want to work something out. >> And if you're you're coming in clean, you're saying, "My fault because our clients are well educated, smart clients. We're doing high-end remodels, high-end new builds. They got money
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means they know something about life. And if you're trying to play dump, they'll catch you. >> Oh yeah. >> And that's just going to open up a can of worms for bad relationship for a whole year right now. So it is a bumpy road and you should come clean every time you made a mistake and explain how it happened and that it's not representing your brand as a whole and the representation of the brand is fixing it. That's what you do. >> Mhm. >> Yeah. >> Nice. Okay. when it's your fault.
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>> Yeah. >> When it's your fault. When it's clear. When it's clear. >> Yeah. Yeah. Yeah. >> Um >> so on that point of things that can go around, I think when that's maybe not breaking something is a little easier is just project delays, >> right? We're running along, things are moving smoothly, something happens that no one was expecting, inspector doesn't show up, yada yada, just delay the project, push it on. Um sometimes it feels like there's like
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when do you tell the client and when do you say hey there's a delay because I don't think anyone needs to know like oh there's a 15minute delay that this guy's not going to be there you know like sometimes it's like well we had three days we planned for that we think it's actually going to end up taking four and like do you just try to lay that out as plain and simple as possible or do you try to avoid getting into the details >> complex question. It depends on the
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situation. Uh if I do see a >> project delay like as a whole means that we're not going to meet the deadline. Leave the phase delay like the whole deadline. Then I will communicate that as soon as I know >> we said we're going to be done in August. That's what happened here. You know, I can just give you 10 different examples right now on things that can delay a project. And as soon as I know it, I'll try and communicate that. If it's a phased delay, for example, the
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tile guys were supposed to start on Thursday and they will start on Friday. Same moment, same minute. They were supposed to start on Thursday, they will start on Friday. Could be with no reason. Could be they're they're running thin. Somebody is sick or just the schedule works better for everybody. I'll communicate that right away. Um I think that what I'm trying to educate my clients on is here I'm giving you, you know, starting date and finish date and in between let me play, let me do my thing. That's what
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I do. That's what I'm good at. Uh that's a cost, you know, trying to stick to the budget and the cost and and um and take it from A to B in my in my own way that I think is the best for your property, for the project. >> U sometimes it goes just by the plan. Sometimes you're modifying, you know, changing things. Um, as long as they know that you're coming with the right intention, they will accept delays or change of schedule. But as anything else, just communicate that as early as possible.
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And try not to be >> Don't try and nick on every single delay. 15 minutes delivery delay, fine. You know, >> hard things. If they're actually waiting, expecting you, that's very unprofessional not to show up. >> Yeah. >> Or your trade to show up. >> Then Yeah. Yeah. They're at 8 and they don't show up till 10. that that that's not happening for us anymore. Like I do not see it the quality of trades we're using, quality of subs, it's just uh
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>> you know for us it's just basic. >> Yeah. Yeah. And I think I your point is just if you're just a straight shooter of this is the time that we expected this to get done and I like what you said like anything between let me figure this out. That's why you're paying us, right? Like I think there's a fine line between, you know, being the client and being the project manager because like the client's aware of the timeline we have, right? But at the end of the day,
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it's like, >> well, that that is a timeline we created. We're managing this project. We're managing these subs. If I need them to just move really quickly on these three items that maybe that they were going to take three weeks for it, I'm like, I need to do two because this guy delayed us for these three days back here. So we need to catch up and we need to move some stuff around to make this work >> because there is nothing makes me happier than looking at the uh G charts
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and see ourselves within the timeline. That means that that our company is operating properly means that we know what we're doing >> and uh you know that's that's our company's goal is to be within the timeline. >> You know I do not want to have any delays just like you dear client but sometimes things will happen. My job is to say, "Okay, drop tiles, you know, scratch that, move on to drywall, get the tile later." After a tile, we're supposed to do like finish paint,
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scratch that, he's busy, get the lumber installed, whatever it is, right? >> But you you are trying to move to move to to kind of push through and uh and meet your originals and not necessarily all the blocks in between. >> Yeah. Yeah. And I think it's good like that you set that up front with the clients too that it's like this is what will happen and this is how we manage it and this is this is this is why you're hiring us by the way because you don't need to stress about it happening like
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if you can build I feel like if you can build that trust and they're like okay yeah they'll get this done I understand it's it's just that repetition and repeating that this is what's happening you're quick to say this delay happened this is what we're doing to resolve it boom done like it just takes some of that internal stress off of them which at the end of the day I mean that's what you're trying to do as as a GC is you're trying to manage emotions and you're
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trying to manage a project and make sure they both align and it's clean and it's hard to do and it takes time and you learn and you practice. Um, but I think these are all things that that the answers at least we're getting from Salvar and these are all things like yeah this will this stuff that we've learned over time and it works and it's the right way to do it. um >> you know here so you're part of Soho and we're all part of that company and I think what keeps us together
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>> accountable to the brand is that the fact we're usually you know you know we stand behind what we say not usually we stand behind what we say and we're saying we're always telling the the clients the truth the the absolute truth even if it's even if it hurts >> we are we're smart about it right we're not trying to do dumb moves but we're still going to stand behind the truth always and I do believe that is a long term, you know, philosophy. >> Yeah.
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>> That's the only thing going to propel your business to the next step. >> Yeah. >> So, be honest and push hard. Don't be lazy. >> Yeah. >> We got what you got to deliver. >> We got to have delays, you guys. You know, it's not going to stop. >> Um, so then when we're in this, because obviously there there's still some stress. We're still imagining we're in this situation with the client, right? Um so moving forward the plan are we
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just detailing out way over extreme this is everything that's happened here everything are you kind of what we talked about earlier just this is the thing these four things will happen we'll be done we'll be through it >> what do you think obviously depends on the the client depending you got to manage their energy like if they want to start super quick there is no way for you to scope a 5,000 square feet you know custom remodel in 30 days Right? You can tell them that's how much I
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that's that's how deep I got with with your plans. That's what missing me >> as for today. >> Here are the plans. Here's the plans missing me and that's what I can get. You know, I I did not didn't have time because I would I I dealt with scoping basic stuff like your foundation work, your framing work. I got no time yet to go into the details of your railing system and you want a full bead. So, it's missing. >> You know what I mean? So, that's that's
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But on the other hand, sometimes you got clients are like, "Hey, we're going to start in one year. Here's your signed pre-construction. Your budget works for us. Then I got all the time in the world to go to all different fabricators, different price points, different designs and get them to the finest detail." So it depends on on their timeline and how stressed they are. And we got our own like, you know, barriers. For example, we are not going to be able to go with a client that just do not
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understand like the basic, you know, submitted plans uh price >> without any interior design elevations, without all interior specifications, just here's what I'm selling you or it's not it doesn't click, then you're usually not going to be a good fit anyways. >> Yeah. >> We'll try and detail we'll try and detail as good as possible within the time we got. >> Yeah. And I think yeah, on a new project on something that you're working on, I think that's good up front. And I think
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since they've probably been with you through the point where if it is the mistake in the draw where we break something like I think they'll know that and I think everyone's like we this thing has happened we want to get through this phase this mistake this whatever it was this thing in the drywall that we didn't know was going to be behind there. So I think at that point sometimes maybe it's okay to say this is the solution we're going to do. We might not know I need this many
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hangers. I need this many studs to make this thing happen to fix this this thing in the drywall that was or installed incorrectly previously, you know, that we have to come back and fix. Um, I think sometimes it's okay to say this is what we're going to do. Here's the price of editing it and let's get this thing moving so we can continue the project and meet the deadline. At the end of the day, that's important for everybody, >> right? Um, so yeah, I think overall it's
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I I honestly feel like the biggest lesson takeaway for anybody is when something happens, rip off the band-aid, tell somebody and say this is what happened. Here's what we're doing. Even if it's I don't have the answer yet, but we're working on it right now with our team and we'll have an answer for you by the end of the day. >> Speak their language, right? Meet meet them on site. Show them the wall. get get some maybe video type, you know, if you can video that that conversation, of
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course, with their approval just to just to put everything in right order and make sure you're you're always you stand behind facts and that will save you a lot of issues. Maybe maybe you'll lose a couple dollars and on things you will you will be able to manage differently. Maybe maybe you'll pay a little more out of pocket and situation on on on your first couple years when you're going to miss a lot of stuff, right? Uh but down the line it will create a better clientele relationships uh and the relationships
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will will move you forward. >> Yeah. >> Um so it's it's it's some sort of a trade and um you're you're trading couple dollars for couple of projects and I think it's worth it. It's a better ROI. >> Yeah. >> Yeah. Oh, and last thing and if if it's your project and you're the salesperson, I think don't let someone else deliver bad news. Like don't let your admin person deliver bad news. Don't let the guy in the field doing the framing
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deliver bad news. Have it come back to you. You have the relationship with the client. You you sold this thing to them. You know them. And so it Yeah. Be just be there >> and just say, "Sorry, I've got to tell this to them. I've got to take the time." Whatever it is, got to walk out of my meeting, give them a five-minute call and say, "Hey, I'm here. I'll talk to you a little bit more later." But like set aside some time for them. These people are important. and they they you
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were important enough to them to select you to be their contractor. >> I agree. Big big ones for sure. Sometimes you you you you got to do that and it's always not the first thing you want to do in the morning or the thing you want to do. It's like oh that's the you know the last thing on your list that you want to do but sometime it saves you and and the team so much so much time and takes off so much stress and just puts you in a better better position. >> Yeah. >> For the day.
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>> Yeah. Okay. Um, so that kind of summarizes the gist of how to communicate bad news to your clients. Um, just remember if you're new, it's going to happen. Just follow these steps, keep it simple, and keep it moving. >> And yeah, if you got any questions, you know, you can always drop a comment or leave a note and we'll try and uh, you know, even hop on a call and give you some some of our insights. If if you're facing a big issue issue right now and you really don't know how to come out
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out of it, you know, reach out. We'll try and we'll try and kind of take it from there and and help you out and see what we can do to uh to support you or to give you a good advice, connect with the right people to get you out of the situation you're at, the situation you're at. Because if you are listening to this podcast and it's not small and it's big and you're in the middle of you're hitting a wall, you're in the middle of nowhere, you don't know what
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to do, >> seek for advice. I think, you know, that's another another piece of advice I got is don't try and solve everything by yourself. >> Yeah. Yeah. Yeah. If you're if you're the guy who uh tipped over that house in the middle of the 15 freeway yesterday and need some help, feel free. I'd love to hear that story. >> Yeah. Actually, I don't like that guy. I I'll skip him. >> All right. Well, that has been the Builder Blueprint podcast. Thank you
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everyone and we'll see you in the next one. >> Thanks, Nate.