Tips for Rookie Pool Builders 

Every successful builder was once a rookie: planning one pool, then another and another, while growing their business. Today’s inexperienced builders face the same challenges in an even more competitive and technologically driven industry. Confident in their construction skills, these new builders are often learning the rest of the business, and some hard truths, as they go.

“They don’t know what they don’t know yet,” says Dave Penton, founder of Fluid Dynamics Pool & Spa in Fullerton, California.

With that in mind, we asked several top-tier pool builders to share their experiences and expertise on the learning curve. 

Common mistakes to avoid

There’s a whole minefield for builders constructing their first few pools. Here are some of the most frequent missteps.

Underestimating costs

Rookies are hampered by lack of experience with the true cost of materials, labor and change orders. But sometimes, even pros can forget important things. “[The solution] is to have some contingency built into your contract, so you’re not putting money out of your pocket to complete a job,” Penton says.

Change orders

It’s tempting to play catch-up with costly mistakes through change orders, but they can damage the client’s trust. “If a job hasn’t changed and nothing is unexpected, I don’t feel comfortable sending a client a change order,” Penton says. “If I messed up my calculations, for instance, that’s really on my back, not on the clients. It speaks to the builder’s character.”

Jon Krawczyk, CEO of Superior Pools of Southwest Florida, says flatly, “I don’t do change orders.” His contracts are detailed and already include top-of-the-line materials. “My price is my price when we sell it.”

Underbidding to win the work

This is common, as everyone is scrambling for work, but it leaves homeowners unhappy when they discover the true cost of their pool — and squeezes out realistic bidders. 

“I can’t build a pool for under $100,000,” Krawczyk says. “Some people are putting pools in for $60,000-$70,000, then making up the difference by pushing upgrades. You talk to any owners afterwards, and I guarantee 90% of them paid more than $65,000.”

Dave Peterson, president and CEO of Watershape Consulting in San Diego and one of the founders of Watershape University, explains the dangers for underbidders. “If they don’t make enough money on the first job, they finish it by using funds from the second,” he says. “Then they’re short on that one, so they use money from the third. That continues until it’s unsustainable. Then they go out of business with holes in the ground.”

Hiring bad subcontractors

New builders need subs, but caution is required. They may know a few from their network but cannot vet them entirely. Some skilled workers are hesitant to sign on with an unknown builder due to the notorious payment issues in the industry. Peterson handled that by telling them, “On the day you do the work, I’ll be there at the site with a check in hand.” 

Kevin Cobabe, president of Dynamic Pool & Spa Construction in Redondo Beach, California, says that bad subs reflect poorly on you, not just themselves. “It took time to find the right ones, and I pay more for them,” he says. “But, in the end, you get what you pay for.” 

Code or permitting issues

“To avoid issues, the main thing is to have a good engineer who knows all the counties [or cities], as each one has different code requirements,” Krawczyk says. He advises allocating several weeks for the process. 

Not documenting every phase

Photos are critical not only to show progress but also to document the site before you arrive, including preexisting damage like cracked windows or chipped stucco. “We use a project management software program, and [the team] enters at least five photos every day,” Penton says, so he can remotely review progress.

Photos are not a substitute for showing up, Cobabe says. “My guys send me [progress] photos every day, but I go to the jobsite two or three times a week and see stuff they don’t photograph,” he says. “You’ve got to keep your eyes on the project constantly.”

Mishandling communication

“Communication is key,” Krawczyk says. “You treat others the way you like to be treated. The owners are spending all this money, and they want to know what’s going on. So, just be honest and tell them. Tell them the ‘goods’ and the ‘bads’ up front, and everyone’s life will be a lot easier at the back end.”

Getting the bid and the money right 

When pricing their first projects, new builders can easily make financial mistakes that can affect the health of their business. 

Underestimating labor hours, material waste or subcontractor costs

Accurate estimating is a learn-by-doing process. Finding a mentor or taking business classes can shorten the learning curve. Watershape University, for instance, offers online, on-demand courses on cost estimating, contracts and other essentials, Peterson says.

Planning for overhead

Many new contractors aren’t knowledgeable about fixed operating costs, such as insurance, fuel, equipment, office time and warranty work. When Cobabe transitioned from employee to entrepreneur about 15 years ago, “I just put a percentage on whatever [I thought] my cost was,” he says. “I was just shooting from the hip.”   

Understanding the difference between a gross margin and profit and markup

“We like to simplify things and put a markup on everything, and that markup should be inclusive of your overhead and profit,” Peterson says.  

Handling deposits and progress payments

Deposits are generally not more than 10% down. “That’s the pool industry standard,” Krawczyk says. Deposit and payment regulations can vary by state. In California, for example, state law often limits the down payment to $1,000 or 10% of the total contract price. 

Cobabe structures payments around completed work, not arbitrary percentages. “On some of my bigger projects, I have written into my contract that I’ll get a 50% deposit the day we start and then 50% upon completion — but just on those segments, not the entire project. Those who front-load their percentages tend to run out of money before the job is done.”

Detailed descriptions and exclusions

Some states, such as California, require specific contract language, Peterson says. “You also have to be clear about what you’re including and not including [like the decks and patio furniture in a photo but not part of the scope].” 

As these new businesses grow, one more expense becomes necessary: A project manager.

A project manager. “Early on, as the owner, I was wearing all the hats,” Penton says. “My mentor told me, ‘One day, you won’t want to be that person.’ So you’ll need to factor in what you’d have to pay someone to manage day-to-day operations. Build that in from the beginning.” Otherwise, on the jobs where homeowners expect the lowest price, “Essentially, you’ll wind up working for free.”