In an industry where adaptability defines success, Monte Hewett is positioned at the intersection of traditional homebuilding and general contracting. On this week’s episode of Atlanta Real Estate Forum Radio, hosted by Carol Morgan of Denim Marketing, Hewett shares insights into how his company navigates the evolving demands of today’s housing market by blurring the lines between fee building, general contracting and development.
How the Post-Recession Market Shaped New Business Models
President of Monte Hewett, Hewett was fee building long before it became a buzzword in residential construction. The post-recession market created unique opportunities that shaped his business model.
“Post-recession, as far back as 2011-2012, a lot of investors bought property that had been foreclosed on, or they bought it as an opportunity to hold and build. They realized that they couldn’t sell the lots or, if they did, wouldn’t get the return they were looking for,” Hewett explained. “A lot of them came to us and said, ‘Why don’t you go and build this land out for us, these lots and on a fee basis or a fee plus a profit share.’”
This approach allowed Hewett to develop a parallel income stream while maintaining the quality standards for which his company is known. Over time, this evolved into a versatile business model that spans different market segments and product types.
“I ended up building just about any type of product for a partnership that was not for sale, or if it was for sale, maybe I’m building it for somebody that doesn’t have the capability to build it but wanted to be the owner on that project,” Hewett said.
The diversity of Hewett’s current projects demonstrates this versatility. On one end of the spectrum, he’s building $2 million villas in Druid Hills. Conversely, he’s constructing affordable housing units in southwest Atlanta through a tax-incentivized program. Various for-sale developments across the metro area are between these extremes, including The Towns at Wire Park in Watkinsville, The Harman in East Atlanta, Findley Row in Alpharetta and an upcoming development in Milton.
Early Involvement & Collaborative Project Management
Hewett’s approach to general contracting goes beyond simply building what’s been designed. He emphasizes the importance of early involvement in the process to maximize value for investors.
“We start most of them in the design phase. We’re not acquiring sites, so they’ll bring us a site and say, ‘This is what we’re trying to do,’” Hewett said. “For the most part, we’re going in early, and sometimes we’re even working on the product and building the budget as we go.”
This collaborative approach helps avoid what Hewett calls “scope creep,” which occurs when amendments during construction lead to costly change orders. By establishing a clear scope statement early and working toward a guaranteed maximum price, his team can better manage expectations and deliver projects on time and within budget.
Design Expertise Creating Distinctive Communities
Hewett’s design expertise is a significant value-add. He often contributes to site planning and amenity design to create distinctive communities. He shared an example of designing a mid-century modern clubhouse for a project called Clifton, adding value that the owners didn’t envision initially.
“I took it upon myself to design that clubhouse and felt like I had some creative ideas that would differentiate that product for the owners,” he said. “I added, I believe, to that project a component that they wouldn’t have done themselves.”
His approach to amenity centers reflects changing lifestyle needs, focusing on creating spaces that integrate into the social fabric of communities where many residents now work from home.
“You never want to take the lowest bid,” he cautions. “In England, on public projects, they take the second lowest. Someone might come in low, and they see the plans are going to need a lot of architectural changes because they...