CR Business Operations

Business Operations.

Questions from this topic make up 35 to 40% of the exam

A.         General Business Operations and Procedures 

  1. Describe the sales process to include:
  1. Writing proposals for client approval
  2. Presenting proposals to clients
  3. Estimating project costs for inclusion in a contract
  4. Creating contracts based on an accepted proposal
  5. Presenting contract to client for signature
  1. Define lead and sales tracking processes
  2. Describe the agreements required to be implemented when working with specialty trade partners
  3. Describe the process used to supervise project design and construction with a focus on monitoring costs
  4. Describe the components of construction procedures
  5. Describe the components of a business plan
  6. Describe the process to review and purchase the required insurance for the remodeling company
  7. Describe the components of a personnel manual including:
  1. standards of jobsite behavior and dress
  2. an organizational chart
  3. job descriptions
  1. Describe the purpose and process of conducting employee performance reviews
  2. Describe the proper procedures used to hire/fire employees

B.         Financial Systems and Procedures

  1. Describe and interpret a financial plan
  2. Describe the components and interpret a company’s annual budget
  3. Describe and interpret a remodeling project’s budget
  4.  Demonstrate a working knowledge of accounting reports to include
  1. profit and loss statement
  2. balance sheet
  3. job-cost reports
  1. Describe a typical payment schedule for a remodeling project
  2. Describe the components of a cash flow report and conduct a cash flow analysis

C.         Marketing Systems and Plans

  1. Describe the components and benefits of a marketing plan
  2. Describe various types of advertising media
  3. Evaluate effectiveness of marketing tactics

D.         Project Management and Operations 

  1. Describe the process for creating a remodeling project schedule
  2. Discuss the importance of periodic monitoring and reporting on project progress compared to schedule and budget
  3. Locate the critical path to project completion on a project schedule
  4. Describe the components of a preconstruction conference
  5. Identify the requirements to schedule the appropriate inspections for a remodeling project
  6. Identify the impact of change orders on the project
  7. Identify how contingency plans are used to address unforeseen problems
  8. Describe the process of working with a homeowner to ensure material selections are made in a timely manner in support of the schedule
  9. Describe the purpose of a final walk-through of a remodeling project
  10. Develop a plan that addresses the preferred communications methods of all stakeholders

E.         NARI Code of Ethics and Standards of Practice

  1. Understand and apply the NARI Code of Ethics and Standards of Practice in regards to the following:
  1. Respond to and conduct corrective actions for customer complaints
  2. Develop and supervise sales procedures
  3. Sell projects in your client’s home
  4. Review contracts for compliance with local, state, and federal regulations
  5. Develop print ads for use in newspaper or yellow pages
  6. Market warranties or guarantees as part of product promotion
  7. Promote sales of merchandise or projects at your business
  8. Provide owner’s manual to client upon completion of project
  9. Supervise point-of-sale operations