May 2, 2005
Make me a match | Paul Lawrence of Home Project Partners links homeowners with pre-screened contractors in southern Maine
By Kristin Rieff
Even contractors tell stories about the shoddy work and unethical business practices of some of their peers. For example, Dennis Cricones of DC Construction, a Westbrook-based general contractor, relates the tale of a homeowner who wanted a new door installed on his house. The contractor on the job ordered the wrong size door, but rather than replacing it, he simply hung it backwards. Not much of a problem ˆ except that the hinges then faced outside, exposed for anyone to unscrew. A new contractor ˆ a colleague of Cricones ˆ was called in to finish the job right.
Situations like these are the inspiration for a proposal that pops up regularly in the state Legislature to require that contractors be licensed. Paul Lawrence supports the bill; though he didn't testify at a recent hearing in Augusta, he thinks it's important that legislation be passed to educate and protect the public. (For more on the bill, see "Cutting dead wood," p. 50.) But Lawrence has another idea about how homeowners can get reassurance that they're dealing with honest, qualified contractors: his two-and-a-half-year-old company, Buxton-based Home Project Partners, serves as a homeowner referral service for York and Cumberland counties. By acting as an intermediary between homeowners and skilled craftspeople, Lawrence hopes to allay homeowners' fears and help contractors eliminate what amounts to tire-kicking from customers who aren't really ready to start a construction project.
Though the company is still in its infancy, Lawrence says he has a network of 61 pre-screened contractors, with a handful more in the pipeline. And, he says, demand for his services has been strong. In 2003, its first full year in business, HPP made 17 successful links between homeowner and contractor, for what Lawrence says is approximately $98,000 in gross revenue for network contractors. In 2004, there were 39 successful connections, for approximately $378,000 in gross revenue for network contractors. Four months into 2005, Lawrence says he's made 23 links, toward a goal of at least 80 by year's end. "We offer a security blanket" for clients, says Lawrence. "It is important that someone is there at the beginning of the project to the end. We can also act as a safeguard against contractor scams." Lawrence adds that he's "willing to be the middle guy. Clients can complain to me and I can speak with the contractor."
For Cricones, who has been a member of HPP's network since 2003, the service creates a steady stream of repeat business; about 30% of HPP clients call back in three to six months for additional work, he says. (Lawrence points out that "completing small projects for one person sometimes leads to doing large projects for someone else.") For the past 10 years, Cricones says he hasn't bothered to place an ad for his business, or to keep a sign on his truck; he is too busy to get cold calls. With Lawrence essentially screening customers for him, "It is a very easy process," he says. "Paul will get a call, [he'll] offer [the homeowners' information] to the contractors ˆ it is left up to us," he adds, to bid on the project.
Sandra Mathieu of the Homebuilders and Remodelers Association of Maine isn't familiar with Home Project Partners, or of any other similar businesses in Maine. She declines to comment on HPP specifically, but says the consumer need the company is addressing is "why we need builder licensing."
Setting a screen
Lawrence, a native of Westbrook, worked for 14 years for the Portland Water District, primarily as a water resource specialist. That meant he was in the field regularly, meeting contractors and homeowners to make sure projects met town standards. Eventually, he found himself in the position of an informal resource for the industry. A homeowner would ask Lawrence if he knew of a good electrician, and he'd recommend a contractor he knew from another project. (Since he crossed paths with many of the same contractors over the years, he became confident in their skills.)
Inspiration also came from a bad experience Lawrence himself had with a contractor he hired to install hardwood floors in his house. The contractor did so, but couldn't bring on the finish contractor in time, so he decided to do the finish work himself. The job was less than perfect, and Lawrence and the contractor were at odds about how the situation should be addressed. The problem, Lawrence says, sprang in part from his own desire to hurry the project along, as well as his failure to screen contractors properly. "Locating a reliable, quality home contractor who will actually return your call and then show up when they said they would is a major hurdle the homeowner must face," he says.
So, in November of 2002, Lawrence officially opened Home Project Partners. He began by compiling a list of contractors he already knew and trusted, then screened and added others ˆ painters, handymen and other contractors ˆ that he deemed essential to most homeowners. Lawrence collects at least five recent references from contractors interested in his service, and, he says, "Work done five years ago for a brother-in-law does not count."
The references complete an in-depth questionnaire about the contractor's quality of work, habits, work ethic and communication skills. Lawrence follows up the questionnaire with a call to the homeowner to get a better feel for the contractor's work. He also checks contractors' records with the Better Business Bureau and the state Office of Consumer Affairs. The process can sometimes take months.
Still, contractors sometimes slip through the cracks. One builder purchased insurance to fulfill HPP's requirements and was added to the firm's network. Lawrence found out a few weeks later that the contractor had subsequently canceled the insurance; the contractor, he says, was swiftly removed from his list.
When a homeowner calls HPP, she, too, is screened. Lawrence likes to know that homeowners are serious about their project and that they have taken some time to plan a budget and timeline. He spends time on the phone "feeling out the situation," as he puts it, to see what sort of contractor would best suit the homeowner's needs. "We pre-qualify all clients to be sure they are sincere about their project," he says. "We don't want to waste our network contractor's time doing estimates and visiting with a client if they have no intention of doing the project. This is only good business and common sense."
After Lawrence is assured of the client's seriousness, he contacts a few appropriate contractors, and then it is up to them to contact the homeowner and bid on the job. But neither party is under any obligation. The contractor can bid on the project or not ˆ and the homeowner can choose a referred contractor, or not.
Eric Hallee of Chase Custom Homes in Windham has been part of HPP since early 2004. He joined, he says, for the leads. Hallee also likes knowing that the projects he bids on are qualified, and that clients are realistic about the budget and timeline of a project. Hallee says he appreciates Lawrence's organizational skills. "Customers often don't get return calls from contractors," he says. "Paul is helpful" in making those contacts happen.
Finder's fee
It's only when Lawrence makes a successful match that money enters into the equation. A contractor who gets a job through HPP pays Lawrence anywhere from three percent to 12% of the contractor's payment, depending on the size and/or scope of the project. A general contractor working on the remodeling of a home would pay a smaller percentage, but a higher sum, than another contractor fixing a customer's broken toilet. So the broken toilet may bring Lawrence $50, while a remodeling job may bring in a few thousand dollars. The service is free to homeowners.
Cricones says the fee is "very reasonable," though he was initially wary of paying for referrals. In the end, Cricones says he found HPP's prices to be substantially lower than similar services. He says he's completed at least 50 jobs for HPP in two years, but he hasn't kept track of how much he has paid the company. In fact, he says he "doesn't feel it" and adds that he is gaining access to "clients that normally I would not have access to otherwise."
To alert homeowners to HPP's services, Lawrence tried direct mail, but didn't have much success. He's also done some advertising for HPP in a weekly community newspaper, but he says most customers find him through word of mouth. So far, he says, the number of clients has grown enough so that the business is sustainable; still, he says, there is room for growth.
In particular, Lawrence thinks that his service could benefit the elderly. He says the Southern Maine Agency on Aging in Scarborough contacted him about adding HPP to its database of services, hoping to compliment its "Mr. Fixit" program. (A representative of SMAA declined to comment in detail for this story, but said that HPP is one of hundreds of services in the database used by the agency's social workers.)
As far as Lawrence is concerned, there isn't much competition for HPP. A Web search for pre-screened or pre-qualified contractors brings up a host of national services, but none based in New England. MaineContractors.com, for example, appears to function as an online yellow pages for contractors. There is no apparent screening of the contractors listed, and a link for "pre-screened contractors" connects to a national company, Service Magic.
Golden, Colo.-based Service Magic, one of the most prominent online resources, offers referrals for a host of contractor specialties, as well as real estate brokers and mortgage dealers. Lawrence calls the service "an automated black hole" where customers do not get the chance to speak to an actual person for help. Unsurprisingly, Elaine Schoch, Service Magic's public relations manager, disputes that characterization, saying that 1.4 million consumers ˆ including 7,300 in Maine ˆ used the company's services last year. (Contractors pay $99 to join the service, after passing criminal, civil/legal, licensing and insurance screens, and then pay $6-$50 for each lead they receive.)
Still, Lawrence is positive about the future. He turned a profit in 2004 and has been paying himself a small salary since then, although he says he reinvests much of it in the company. In the immediate future, he plans to continue to expand ˆ by reaching both homeowners and contractors ˆ in southern Maine. "The possibility to go statewide [exists] but it would be hard to cover the territory," he says.
Until then, he'll continue working in southern Maine, connecting homeowners and contractors one job at a time.
Situations like these are the inspiration for a proposal that pops up regularly in the state Legislature to require that contractors be licensed. Paul Lawrence supports the bill; though he didn't testify at a recent hearing in Augusta, he thinks it's important that legislation be passed to educate and protect the public. (For more on the bill, see "Cutting dead wood," p. 50.) But Lawrence has another idea about how homeowners can get reassurance that they're dealing with honest, qualified contractors: his two-and-a-half-year-old company, Buxton-based Home Project Partners, serves as a homeowner referral service for York and Cumberland counties. By acting as an intermediary between homeowners and skilled craftspeople, Lawrence hopes to allay homeowners' fears and help contractors eliminate what amounts to tire-kicking from customers who aren't really ready to start a construction project.
Though the company is still in its infancy, Lawrence says he has a network of 61 pre-screened contractors, with a handful more in the pipeline. And, he says, demand for his services has been strong. In 2003, its first full year in business, HPP made 17 successful links between homeowner and contractor, for what Lawrence says is approximately $98,000 in gross revenue for network contractors. In 2004, there were 39 successful connections, for approximately $378,000 in gross revenue for network contractors. Four months into 2005, Lawrence says he's made 23 links, toward a goal of at least 80 by year's end. "We offer a security blanket" for clients, says Lawrence. "It is important that someone is there at the beginning of the project to the end. We can also act as a safeguard against contractor scams." Lawrence adds that he's "willing to be the middle guy. Clients can complain to me and I can speak with the contractor."
For Cricones, who has been a member of HPP's network since 2003, the service creates a steady stream of repeat business; about 30% of HPP clients call back in three to six months for additional work, he says. (Lawrence points out that "completing small projects for one person sometimes leads to doing large projects for someone else.") For the past 10 years, Cricones says he hasn't bothered to place an ad for his business, or to keep a sign on his truck; he is too busy to get cold calls. With Lawrence essentially screening customers for him, "It is a very easy process," he says. "Paul will get a call, [he'll] offer [the homeowners' information] to the contractors ˆ it is left up to us," he adds, to bid on the project.
Sandra Mathieu of the Homebuilders and Remodelers Association of Maine isn't familiar with Home Project Partners, or of any other similar businesses in Maine. She declines to comment on HPP specifically, but says the consumer need the company is addressing is "why we need builder licensing."
Setting a screen
Lawrence, a native of Westbrook, worked for 14 years for the Portland Water District, primarily as a water resource specialist. That meant he was in the field regularly, meeting contractors and homeowners to make sure projects met town standards. Eventually, he found himself in the position of an informal resource for the industry. A homeowner would ask Lawrence if he knew of a good electrician, and he'd recommend a contractor he knew from another project. (Since he crossed paths with many of the same contractors over the years, he became confident in their skills.)
Inspiration also came from a bad experience Lawrence himself had with a contractor he hired to install hardwood floors in his house. The contractor did so, but couldn't bring on the finish contractor in time, so he decided to do the finish work himself. The job was less than perfect, and Lawrence and the contractor were at odds about how the situation should be addressed. The problem, Lawrence says, sprang in part from his own desire to hurry the project along, as well as his failure to screen contractors properly. "Locating a reliable, quality home contractor who will actually return your call and then show up when they said they would is a major hurdle the homeowner must face," he says.
So, in November of 2002, Lawrence officially opened Home Project Partners. He began by compiling a list of contractors he already knew and trusted, then screened and added others ˆ painters, handymen and other contractors ˆ that he deemed essential to most homeowners. Lawrence collects at least five recent references from contractors interested in his service, and, he says, "Work done five years ago for a brother-in-law does not count."
The references complete an in-depth questionnaire about the contractor's quality of work, habits, work ethic and communication skills. Lawrence follows up the questionnaire with a call to the homeowner to get a better feel for the contractor's work. He also checks contractors' records with the Better Business Bureau and the state Office of Consumer Affairs. The process can sometimes take months.
Still, contractors sometimes slip through the cracks. One builder purchased insurance to fulfill HPP's requirements and was added to the firm's network. Lawrence found out a few weeks later that the contractor had subsequently canceled the insurance; the contractor, he says, was swiftly removed from his list.
When a homeowner calls HPP, she, too, is screened. Lawrence likes to know that homeowners are serious about their project and that they have taken some time to plan a budget and timeline. He spends time on the phone "feeling out the situation," as he puts it, to see what sort of contractor would best suit the homeowner's needs. "We pre-qualify all clients to be sure they are sincere about their project," he says. "We don't want to waste our network contractor's time doing estimates and visiting with a client if they have no intention of doing the project. This is only good business and common sense."
After Lawrence is assured of the client's seriousness, he contacts a few appropriate contractors, and then it is up to them to contact the homeowner and bid on the job. But neither party is under any obligation. The contractor can bid on the project or not ˆ and the homeowner can choose a referred contractor, or not.
Eric Hallee of Chase Custom Homes in Windham has been part of HPP since early 2004. He joined, he says, for the leads. Hallee also likes knowing that the projects he bids on are qualified, and that clients are realistic about the budget and timeline of a project. Hallee says he appreciates Lawrence's organizational skills. "Customers often don't get return calls from contractors," he says. "Paul is helpful" in making those contacts happen.
Finder's fee
It's only when Lawrence makes a successful match that money enters into the equation. A contractor who gets a job through HPP pays Lawrence anywhere from three percent to 12% of the contractor's payment, depending on the size and/or scope of the project. A general contractor working on the remodeling of a home would pay a smaller percentage, but a higher sum, than another contractor fixing a customer's broken toilet. So the broken toilet may bring Lawrence $50, while a remodeling job may bring in a few thousand dollars. The service is free to homeowners.
Cricones says the fee is "very reasonable," though he was initially wary of paying for referrals. In the end, Cricones says he found HPP's prices to be substantially lower than similar services. He says he's completed at least 50 jobs for HPP in two years, but he hasn't kept track of how much he has paid the company. In fact, he says he "doesn't feel it" and adds that he is gaining access to "clients that normally I would not have access to otherwise."
To alert homeowners to HPP's services, Lawrence tried direct mail, but didn't have much success. He's also done some advertising for HPP in a weekly community newspaper, but he says most customers find him through word of mouth. So far, he says, the number of clients has grown enough so that the business is sustainable; still, he says, there is room for growth.
In particular, Lawrence thinks that his service could benefit the elderly. He says the Southern Maine Agency on Aging in Scarborough contacted him about adding HPP to its database of services, hoping to compliment its "Mr. Fixit" program. (A representative of SMAA declined to comment in detail for this story, but said that HPP is one of hundreds of services in the database used by the agency's social workers.)
As far as Lawrence is concerned, there isn't much competition for HPP. A Web search for pre-screened or pre-qualified contractors brings up a host of national services, but none based in New England. MaineContractors.com, for example, appears to function as an online yellow pages for contractors. There is no apparent screening of the contractors listed, and a link for "pre-screened contractors" connects to a national company, Service Magic.
Golden, Colo.-based Service Magic, one of the most prominent online resources, offers referrals for a host of contractor specialties, as well as real estate brokers and mortgage dealers. Lawrence calls the service "an automated black hole" where customers do not get the chance to speak to an actual person for help. Unsurprisingly, Elaine Schoch, Service Magic's public relations manager, disputes that characterization, saying that 1.4 million consumers ˆ including 7,300 in Maine ˆ used the company's services last year. (Contractors pay $99 to join the service, after passing criminal, civil/legal, licensing and insurance screens, and then pay $6-$50 for each lead they receive.)
Still, Lawrence is positive about the future. He turned a profit in 2004 and has been paying himself a small salary since then, although he says he reinvests much of it in the company. In the immediate future, he plans to continue to expand ˆ by reaching both homeowners and contractors ˆ in southern Maine. "The possibility to go statewide [exists] but it would be hard to cover the territory," he says.
Until then, he'll continue working in southern Maine, connecting homeowners and contractors one job at a time.
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