When Chris Duffy, Founder and CEO of Hummingbird Development, began taking on remodeling projects, his approach wasn’t much different from the average homeowner redoing a bathroom or adding on a den. He hired a general contractor, which resulted in a good deal of frustration.
“The general contractor would hire subcontractors and have them dictate the schedule and pricing to us,” Duffy recalls. “It was confusing. We couldn’t ascertain why one contractor was higher or lower than another, or even how to evaluate one contractor against another. Prices seemed arbitrary, timelines were all over the place, and we just couldn’t pinpoint what the fair value was for work being done.”
As his frustrations mounted, Duffy remained determined to know the true value of every subcontractor working on his projects. What he learned led him to adopt a new approach to projects that not only reduced costs but also made it possible to get the work done more quickly, with fewer surprises, and with better results.
Today, that approach, which is built around vertical integration, empowers Hummingbird Development to provide comprehensive project management that includes transparent pricing, efficient timelines, and quality workmanship. In the end, it also removes 10-30% of typical project costs.
“We’ve learned that the real cost of construction is about one-third of the retail cost,” Duffy says. “In development, there’s simply no reason to pay that type of premium.”
Hummingbird Development: Transforming the building process with creativity and collaboration
Duffy is a residential real estate developer based in Northern California and the driving force behind Hummingbird Development (HBirdCA). His expertise is focused specifically on residential construction, real estate investment, California real estate, and remodeling costs and trends.
Hummingbird serves clients in California with house remodeling, design-and-build, room additions, and kitchen and bathroom projects. Founded on the belief that it could transform the building process into a creative and collaborative family endeavor, Hummingbird builds homes filled with character, love, and the unique essence of each family it works with.
“Our family business is building family homes,” Duffy says. “We build every home as if our family would live in it when we are done, so you can be sure of the quality and attention to detail. We provide expert guidance at every stage of the project, clear and upfront pricing, and workmanship that refuses to cut corners.”
Hummingbird Development: Serving clients with ‘math and concrete’
Over more than 25 years of working in real estate development — and the development and redevelopment of over 100 homes — has helped Duffy learn a number of important lessons that guide the way he serves his clients. One of the most notable involves what he calls “math and concrete.”
“From the outside, real estate development seems to be focused on selecting great finishes and beautiful designs. In other words, the fun part of development,” Duffy says. “But the truth is, real estate development is all about math and concrete.”
With every Hummingbird project, Duffy and his team spend hours working with proprietary spreadsheets where they factor in things like commute patterns, employment trends, and price-per-square-foot sales data. It’s a critical part of their commitment to full project management, which provides expert guidance from design and permitting through to finance, construction, and completion.
“Our spreadsheets power our decision making on the front end,” Duffy explains. “And then core construction competence, such as pouring concrete, upgrading electrical panels, and installing the right drainage systems, really drives value and makes a property work. We have a great in-house designer and spend as much time as anybody on the finishes, but we also know that if you don’t get the math and concrete right, your development project can’t succeed.”
Hummingbird Development: Delivering cost-efficient construction with vertical integration
Hummingbird’s vertical integration approach does away with the headaches associated with waiting on third-party vendors and paying their markups. As a result, it can provide clients with cost-efficient construction without the delays that are common to the remodeling process.
“What you find as you delve into construction is that each trade is intertwined with the other,” Duffy explains. “The electrician can’t do his work until the framer is done. The insulation can’t be installed until the electrician is done. The drywall can’t go in before the insulation is done. Consequently, a delay in any one trade has an impact all the way down the line, which is typically what causes the homeowner horror stories about remodels that last years.”
The vertical integration model allows Hummingbird to make quick decisions about the best way to meet client goals and stay on top of the schedule all the way through to a project’s completion. The clarity and control the model provides are a big reason why Hummingbird’s costs are so low.
Hummingbird Development: Designing homes that people fall in love with
Today’s real estate market is swamped with cookie-cutter designs developed to appeal to a broad audience. Developers who take that approach believe it will result in a home that is easier to sell. Hummingbird takes a different approach.
“Our philosophy is to make homes that a few people fall in love with,” Duffy says. “We don’t just want to sell to someone who appreciates the good value we provide. We want to sell to someone who couldn’t imagine themselves living anywhere else.”
