Builder100

Oakwood Homes Fearlessly Scales the Builder 100 List

Most American home builders are notoriously slow to embrace change. Oakwood Homes is streamlining its operations—and bolstering sales—by embracing it.

7 MIN READ
Patrick Hamill, CEO, Oakwood Homes Profile Picture

Merrick Chase

Patrick Hamill, CEO, Oakwood Homes

Gut Check

One of the most valuable outcomes of using BIM has nothing to do with how a house looks but instead focuses on how it will function.

3D modeling helps designers and builders visualize the guts of a houseu2014systems that include framing, floors, electrical conduit, pipes, and HVAC ducts. By integrating models from several parties, including architects, engineers, trades, and manufacturers, BIM software can identify inconsistencies that might crop up during construction in a process known as clash detection. A clash might be two elements that overlap in space, or one element interfering with the installation sequence of another.

As builders know all too well, these snafus lead to construction delays and added costs. "When drawing in 2D you can imagine how hard it is to represent all that interaction," says industry consultant Clark Ellis. "For yearsu2014even decadesu2014this u2018clash’ has been a big problem for builders."

BIM’s 3D models bring those problems to light before the house is built. The software flags issues and can resolve them automatically or allow the designer to do it manually. "It has a dramatic effect on a project’s cost, quality, and schedule," Ellis says.

But the benefits of high-tech construction processes don’t stop with the third dimension. In the future, residential builders will follow the lead of commercial and industrial designers to access 4D models, which encompass time and scheduling; 5D, which integrates costs; and 6D, which is focused on after-sales maintenance and upkeep.

“They don’t necessarily see the payoff in making such a big investment on the front end,” Ellis says. “But if you invest wisely and execute it well and get that machine in place, it gives you a tremendous advantage over competitors who aren’t doing it.”


Factory Efficiencies

Oakwood also is setting the pace in another technology-based area of construction management: panelized building systems, which it has been using to construct homes for more than 15 years. It operates two factories—one in Denver and one in Salt Lake City—that manufacture finished walls and roof and floor trusses based on CAD files from Oakwood designers. Factory production drastically reduces material waste, keeps jobsites cleaner, and keeps schedules moving with no weather delays. “It’s really a turnkey framing solution,” says Jay Small, Oakwood’s vice president of vendor integration.

This component approach reduces the time it takes to frame a house by up to 50% and controls build cycle time, according to Small. It’s so efficient that less than 1% of lumber is wasted.

“Our trash vendor wanted to increase the price they charged us because our trash weight was so low it didn’t make sense for them to come out to make the trip just for our recyclables,” he says.

The system produces energy-saving advanced framing sections made of 2×6 walls built 24 inches o.c. with three stud corners. “We’re very conscious of how the envelope goes together so we can maximize the insulation,” Carpenter explains. This approach is less expensive because it uses less lumber and faster because it uses fewer pieces. It also helps a home to save energy by providing a deeper cavity for insulation, which is added on site.

Streamlined Construction

Oakwood’s streamlined process has helped to alleviate problems from the region’s notorious labor shortage, says Aaron Wilson, the firm’s vice president of purchasing. Once the components come out of the factory, the company uses its own framing crews to install them on site. “The real value that we get from the factory is that we don’t have to get in a pricing war with other builders who are competing for skilled labor in this market,” he says.

The process also has made the company a favorite with vendors and trades, who appreciate its detailed product tracking and predictable build schedules.

“You can get extreme precision on quantities,” Wilson says. “And we’ve removed variability for our trades so they can be more consistent in the way they build and can know how much they’re profiting from each individual job.”

Although it simplifies construction, panelization does not decrease design choices, which Oakwood officials are quick to point out. “We have the ability to manage the changing of the structure of the house without a huge impact on the operations side,” Carpenter says.

“It’s true that the housing industry has been behind in terms of technology, but we see it being used in every facet of a customer’s life, so we believe that our customers would feel nervous if we didn’t have that type of sophistication. It’s been a huge differentiator for us in the marketplace.” — Donald carpenter

Having access to 3D designs has been a boon for the sales department. The renderings are used to show off new communities and floor plans, virtual model homes, and YouTube walkthroughs to help potential buyers envision a home and community—sometimes before it’s built.

“The 3D aspects give them confidence to make a buying decision very early on,” Hamill says. In fact, 127 houses at the company’s new Green Valley Ranch, one of Denver’s fastest-growing master planned communities, sold before the model was complete.

Oakwood buyers love the fact that they can visualize their house in the planning stages via computer software. “Once you get that emotional investment into the house, customers are tied to the house because they feel they’ve truly designed it themselves,” Hamill adds.

The end result of the company’s trailblazing efforts has been that customers feel they are part of a quality-driven process, and Oakwood is thriving because of it; the firm is on track to surpass last year’s closing numbers.

“It’s true that the housing industry has been behind in terms of technology, but we see it being used in every facet of a customer’s life, so we believe that our customers would feel nervous if we didn’t have that type of sophistication,” Carpenter says. “It’s been a huge differentiator for us in the marketplace.”

About the Author

Jennifer Goodman

Jennifer Goodman is a former editor for BUILDER. She lives in the walkable urban neighborhood of Silver Spring, Md.

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