An interview with Phillip W. Smith, Phillip W. Smith General Contractor
Phillip W. Smith General Contractor
Phillip W. Smith, President
Company History

Begun in 1990 by Phillip and wife, Cathy.

Scope of Work

General contractor specializing in custom residential and commercial construction and remodeling.

Recent Projects

I'On Creek Club in the I'On subdivision; 513 Traders Alley in Olde Park; 20 Lockwood Drive in Harleston Place; 707 Ocean Boulevard, Isle of Palms; 8, 15, 22, 33, 44, 45 and 47 Seagrass Lane in Wild Dunes; 9, 55, and 63 Ocean Point in Wild Dunes; 1443 Madison Court in the Brickyard.

Typical Workload

Averages six to eight projects per year.

Number of Employees and Superintendents

Nine full-time staff, including four superintendents and two office administrators.

Personal

Originally from Boca Raton, Florida, Phillip has worked as a builder since 1978. He and Cathy live on the Isle of Palms with their two daughters aged 6 and 8.

More than 90% of your clients would recommend your firm to a friend. How do you earn such high praise from your customers?

We encourage the homeowner to be involved as much as or as little as they want. We work with them, not around them. For example, many builders don't walk homeowners through the site after the house is framed. We like to do this. The homeowner gets a better understanding of how things are going to work. Turning a flat blueprint into a three-dimensional object is difficult. Standing in the house helps them visualize the finished product design. This way we can help ensure that the finish materials will be in synch with the furnishings and what they are planning to do. Our attention to detail is essential to the successful completion of the project. Our goal is to make sure the homeowner gets what they want, no matter what it takes.

Nationally, recommendation rates for builders are often as low as 60%. Why are so many people dissatisfied with their builders?

It is a lot easier for the builder to give clients what they need than to give them what they want. I think that communication is vital to a successful relationship. You have to make sure they understand exactly what they are getting.

Client Profile

People looking for a custom-built home with an appreciation for quality construction.

Approach to Working With Clients

Every client is different. Taking time to understand them is very important to us. The better I get to know the homeowner; the easier it is to fulfill their expectations. I like them to know they can call me anytime they have a question.

How do you normally structure your contracts?

Almost all of our work is contracted lump sum (fixed price based on a clear set of plans and specifications). We rarely use cost-plus because we like to be able to tell our clients exactly what they are going to pay. The fixed price contract is easy for our clients to understand and straightforward for us to administer.

What trends are you seeing in client choices of building design and materials?

Open spaces, higher ceilings, more windows, high tech wiring and equipment, a kitchen you would find in a finer restaurant, and home offices are a few of the building designs we are seeing incorporated into homes. As for materials, people are looking for higher grade and lower maintenance materials.

Do you set annual goals for your company's performance - as in the number of projects?

Our goal is to keep everyone busy, not so busy that we can't pay attention to details and enjoy what we are doing. We work on about six to eight houses each year. That is a comfortable level.

Both your wife, Cathy, and sister, Jennifer, work in your office. Is having family in the office an asset?

Our entire staff is outstanding, and the family aspect adds to that. Cathy and Jennifer are phenomenal in the office. Their understanding of construction and what is going on in the field makes the communication between homeowners, subcontractors, other employees, and myself so much easier. We know we can count on each other.

How do you motivate your employees? Do you give monetary incentives?

Yes. We feel strongly about profit sharing. Our company is a great team effort and we give every individual a percentage of the profit each year. We do this because we want each person to feel like they are more than just another employee. If you don't have a happy employee, most likely you won't have a happy homeowner.

Why are you a builder?

It's fun. I enjoy the challenges, the great clients and the satisfaction of the completed projects. I love to be out there where it's all happening, particularly in the structural and mechanical phases. I'm a field guy, not an office guy.

Building is a notoriously demanding profession. How do you avoid burnout?

I try not to be a workaholic. As you stated, this is a demanding business. There are weeks when I work more than I would like. I try to balance these with weeks when I take more time for my family and myself.

What should clients bring to the table and contribute during the construction process?  What can they do to help make the relationship a success?

A good feeling for what they want or "a few pages from Southern Living" helps. Providing us with answers to questions and selection of finish items in a timely manner helps to make the process smoother. Communication in both directions is vital to a fun and successful project. We can help them with this process by sharing our experience and knowledge coupled with a knowledgeable group of suppliers to create a great team for success.

How do you market your company?

We depend solely on referrals, word of mouth, and our reputation. A satisfied homeowner is our best advertisement.

What are the biggest challenges facing companies like yours in the building industry?  What are some of the challenges facing your business right now?

Rising costs of insurance, labor and materials, as well as a shortage of experienced labor are all challenges for the industry. Around here, we're dealing with the new IBC codes, which each municipality has adopted a little differently.

How do you measure your success as a builder?

By how satisfied our last customer is.

How often do you work directly with an architect?

Almost always.

What changes/advances would you like to see in the architecture profession?

I would like the architect to take more time in educating their client. If the client understands what the blueprint says, this helps ensure they are getting what they want. I like to get involved in the design phase as early as possible. This helps control costs and keeps the job builder friendly without sacrificing structural integrity or quality. An advance I'd like to see is 3D/virtual reality in the architect's office to demonstrate the finished product design and enable the homeowner to walk through the house before it is built.

Are you a better builder now than you were 20 years ago? What have you learned?

Definitely. We are learning every day. We've learned a tremendous amount about products and about what people want and expect. If you enjoy what you do every day, you are going to be better at it tomorrow than you are today.