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Building Matters

SWOT Analysis for Building Renovations

An argument for applying the strategic planning and management tool to residential remodeling projects

Back in the early 1990s, before I joined the construction industry, I was taking college business classes. I remember learning how to assess a business using SWOT analysis. The acronym stands for strengths, weaknesses, opportunities, and threats. I’ve been applying this idea—with emphasis on weaknesses and threats—to the assessment of homes that are about to undergo renovations. I find the SWOT theory helpful for gathering data, determining scope of work, and developing a project plan.

I think it’s best practice to assess a home’s “strengths” and “weaknesses” before starting any renovations. When I work in existing homes, typically the owner’s goals include improving the structure, increasing energy efficiency, and elevating comfort levels. On occasion, the changes made do not have the expected outcomes and, in some instances, have damaged the structure or endangered the occupants.

A case example

Back in the early 2000s, I was hired to replace a shingled roof with a new metal roof. The job went well—both the homeowner and I were pleased with the outcome. The following year, I was asked to replace a few upper-level windows in the same house. The windows would not seal, and a woodpecker had made a hole in one that completely penetrated the wood frame. This job also seemed to be a success; continuity of the water control layer was improved and air leakage on the upper level was reduced.

Cape house metal roof

The following spring, however, the homeowner told me there was a roof leak; water was dripping through the finished ceiling in several locations. When I arrived, I found the entire underside of the roof sheathing full of frost. The melting frost was the source of the water leaks. So, what changed to cause attic frost to form? The installation of new windows!

Attic…

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2 Comments

  1. bcade | | #1

    Speaking for myself, any content on construction specific business and procedural optimization would be fantastic!

    Having transitioned from an industry where this kind of analysis and optimization were parts of day to day operations, it baffles me how (in my experience) this is virtually unheard of in the residential construction industry.

    One thing that helped me when I was first learning about SWOT is the attached 2x2 matrix which separates factors by being internal vs external and makes for a nice visual in presentations.

    While as you mention, SWOT analysis could’ve prevented this issue from happening in the first place, after a problem like your example happens, Root Cause Analysis would be a good way of preventing it from happening again. It includes the analysis of what exactly went wrong and how it happened, but also includes creation of policies and procedures to mitigate the risk of it happening again. In your example that may be implementing an initial assessment for risk factors which if identified, would trigger a SWOT analysis to determine the appropriate path forward.

  2. BirchwoodBill | | #2

    SWOT could be adapted for what to de-scope when over budget. What happens if I change a metal roof to an asphalt single roof? Lower capital cost vs. ongoing shingle replacement every 15 years.

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