Kirkland’s booming housing market has attracted a Canadian-based construction management company seeking to branch out into the Eastside and other parts of the state.
Founded in 2006, Alair uses a new approach in handling custom construction projects, both residential and commercial, between contractors and customers. Through the use of a Client Control software, Alair helps clients keep projects within budget and on schedule, two of the biggest problems customers handle, according to Chief Communications Officer Adam McCaa. The software also enables them to monitor the project’s progress directly from the construction site. The model also provides them with direct control over the project so that every change or decision requires their approval before moving.
“They want transparency and certain things really only Alair offers,” McCaa said. “If you look at a market like that…people are wanting to get as much out of their investment as possible. Our model just fits. We’re different from anyone in the state.”
The appeal, he said, is strong among custom home builders, who are typically much more interested in controlling the different aspects of the project and prefer a proactive role rather than passive.
“Now we know what every single person is charging, what every single purchase costs,” he said. “We’re giving you the price that we’re getting it for. It appeals to the better buyers, the people who are really conscious of their investment. They want to build a custom home, they want to make a difference in their lives. They have questions, we have answers.”
Alair Regional Partner Stu Hopewell, who is assisting the Kirkland office’s at the moment, said their model is also a response to the kind of experience people want when building a custom home.
“Clients today are much more educated than clients were 10, 15, or 20 years ago,” he said. “Theres lots of information people can source themselves. What we find now is clients know a great deal about one or two topics but others haven’t been researched. Clients aren’t looking for someone to write a check to and take care of all the deals. They want to be a part of the process.”
First starting out of Edmonton, Alberta, Canada, McCaa said their model has proven so popular they reach all major parts of the country and have started to expand into the United States in areas like Arizona and New York.
“It really took off in a positive way,” he said. “Our approach to the market and our approach to doing business and construction projects was so unique and never been done before.”
As part of their expansion into Kirkland, McCaa said they will be reaching out to existing contractors.
“All of them, every single one of them, probably have some challenges to dominate the market,” he said. “The challenge is what we offer from a business perspective. Even if they’re the number one home builder in Kirkland it’s almost inevitable they’re gone up and down with the times. People might assume because the economy’s rising, property values are going up. What happens when there’s so much demand? Business failures, because they take on too much work and it’s hard to deliver on expectations.”
One benefit for contractors working with Alair, he said, is that it will benefit them when seeking tradesmen, such as electricians, bricklayers, and plumbers, to complete specific tasks on a project.
“They would want to work with the most reputable builders possible,” he said. “When they do a good job, their reputation still is on the line for the contractor who hires them for the project. They want to work with the contractor with a more streamlined process and transparency and comes in on time and on budget.”
Hopewell said they will also help contractors acclimate themselves to the Alair model.
“Because our processes are quite different from standard construction, some of our processes and procedures are different for those with 30 years of experience,” he said. “We have a different mindset, a different way of thinking.”
Meanwhile, the local housing market continues to grow, according to Evergreen Home Loans Vice President Don Zender, who said they have also seen a rise in loans for custom homes.
“Starting in 2016 it’s going to be another busy year,” he said. “Kirkland is still considered one of the premier places to be. It’s not slowing down. We may not go at such a crazy pace, but it’s definitely not slowing down.”
Zender added that there are numerous advantages for both customers as well as the community where the home is built. For the community, a custom home brings the value up, as it tends to be an upgrade compared to the adjacent houses.
Like McCaa and Hopewell, Zender said the customers are usually more knowledgeable and are attracted to the level of control it offers.
“You’re going to put the footprint of the home exactly as you want,” he said. “You get to pick everything out, starting from the foundations to the finishing trim on the doors. You get to put what you want where you want, and then you’re going to get the opportunity to really control the costs.”
He added that another benefit of custom home building is that the customer gets to choose who will actually build the home to ensure it is built properly.
In order to get a loan for a custom home, Zender said, the client has to have the drawings or the blueprints of the home, which they can either purchase or modify themselves. The builder must also be approved by the bank.
However, despite Kirkland’s housing boom, McCaa said it is certainly beneficial, but not the underlying reason for their decision to open an office in the city, as they are opening 25-30 other offices in other parts of the state.
“Obviously I think if it’s from a timing perspective, would we prefer to be in Kirkland when it’s going, but we’re coming there if it’s going down,” he said. “We feel like now our model is going to work in every market. We’ve proven this in the smallest towns to the biggest cities in the world.”
In fact, during the housing crash in 2007-2008, Hopewell said the company still managed to grow.
“We know the model is working,” he said. “There were still people retiring. There were still people building homes. When we sit down with a client, and we explain standard construction and what we do, 75 percent of the time they move on with us. That percentage is staggering. It’s only because the communication and the processes are there. They want to be involved in the build.”
For more information visit www.alairhomes.com.