Standards Review

Standards for Remodeling Business Operations

NARI is in the process of developing standards that define what a mature remodeling business may look like in terms of business, marketing, and operating systems.  It is expected that a mature remodeling business could use these standards as a means of finding areas for improvement and increased profitability.  These standards may also serve as a road map for startups and newer remodeling companies as they look for areas to help productivity or profitability.  These standards may also serve as the foundation for NARI’s webinars and education programs of the future.

The NARI Standards Development Task Force thanks you.


I.   Ethics

  1. Behave in an ethical manner and adhere to the NARI Code of Ethics ) and Standards of Practice

II   Business and Financial Operations

  1. Business Structure / Corporate Status
    Be incorporated.


  2. Licensure
    Maintain appropriate licenses, certifications, or permits as required.


  3. Staff Management

    1. Maintain job descriptions for each position.

    2. Maintain an Organization Chart that shows reporting relationships.

    3. Maintain up-to-date employee and company policy manuals.

    4. Demonstrate consistent hiring practices.

    5. Demonstrate appropriate due diligence on candidates prior to hiring.

    6. Utilize an employee review process.

  4. Insurance
    Maintain all insurances as required by jurisdiction, permits, and client contracts.


  5. Accounting System

    1. Have a structured chart of accounts in place.

    2. Use a recognized accounting information system.

    3. Use an accrual or cash accounting method.

  6. Financial Performance

    1. Conduct in-process Job Costing on remodeling projects.

    2. Demonstrate a pattern of profitability over the past three (3) years.

    3. Maintain Retained Earnings no less than 6 months of overhead.

    4. Demonstrate the ability to manage business cash flow.


III   Sales and Marketing


  1. Maintain and execute a marketing plan that is updated at least annually, including:

    1. Maintain a website with up-to-date information on the business.

    2. Communicate regularly with past clients and prospects.

    3. Formally track sources of leads and results of marketing activities.

  2. Use a documented sales process, including:

    1. Pre-qualification process.

    2. Presentation process.

    3. Follow-up process.

    4. Tracking closing ratios.

    5. Process for hand-off from sales / design to production.


IV  Quality, Compliance, and Training

  1. Have a customer satisfaction monitoring process that addresses any issues identified.

  2. Maintain at least one MCR/CR, CKBR, or another top tier certified remodeling professional on staff.

  3. Conduct, maintain, and document an internal training program that addresses:

    1. Health and Safety requirements.

    2. Professional development.

  4. Maintain an Injury and Illness Prevention Plan as defined by OSHA.

V  Production / Field Operations


  1. Operating Procedures

    1. Document and utilize standard operating procedures.

    2. Maintain an explanation or policy on how those procedures are implemented and maintained.

  2. Use a production manager, project manager, or lead carpenter for project management.