In 1984, Stan Luhr began working as an expert defending builders and developers involved in litigation. Between 1984 and 1990, his firm, Pacific Property Consultants, participated in approximately 1,500 litigation cases. Despite his success, Luhr became troubled that he was not allowed to share the information he collected with the builders who created the defects. Nobody seemed focused on fixing the problem and litigation did nothing to improve the defective construction practices.

At the end of a particularly grueling 17-day deposition, Luhr decided to develop pro-active services to help builders and developers avoid construction defect litigation in the first place. This decision was birth of Quality Built.

Luhr and business partner Beth Michaelis began the process of developing Quality Built by analyzing more than 1,000 litigation cases. They also examined photographic evidence, noting the specific “root cause”, or performance metric, which could have prevented the anomaly from occurring. Once analysis was complete, Luhr and Michaelis compiled nearly 2,500 unique data Checkpoints which covered all types of construction, different products and systems, and geographic variations. The Checkpoints were organized into 14 different systems which roughly mirrored the trades involved in the construction life cycle.

In 1994, these quality assurance services were offered within Pacific Property Consultants. In 1999, Quality Built services evolved into a separate California corporation. The ability to deliver precise, qualitative measurement of construction projects in residential homes was available for the first time to builders.

Over the years, Checkpoints were expanded to provide coverage for multi-family, commercial and high-rise projects. The focus of the data collection process was transformed by the quality of Checkpoints directing Field Representatives to document properly installed building components as well as items which fell below the Quality Built standards. Digital photographs were electronically linked to Checkpoint data, providing an accurate archived record of construction.

Luhr and Michaelis also created a unique system to evaluate the quality levels of a builder. Known as the “Seven Deadly Sins of Construction”, the metrics rank builders on a consistent platform, regardless of construction project type or location. As a result, for the first time builders can receive accurate risk levels based on the construction at the time of audit, allowing insurers to gauge a builder’s current risk rather than historical loss actuaries. The Quality Built Builder Risk Assessment™ plays an important role in rating the quality of builders, trade contractors, and in tracking trends in the building industry. It also verifies the significant return on investment for builders using the Quality Built system.

Today, Quality Built’s Checkpoint database houses more information related to construction practices than any other single source of information available to builders, trade professionals and the insurance industry. Checkpoints measure risk in several ways and are prioritized based on a patent-pending process which ranks Checkpoints based on severity of life-safety, building durability, occupant comfort and a host of other factors. Checkpoint backup data provides an instant training tool, delivered electronically to the jobsite via touch-screen computers. More than 1 million such Checkpoints are answered monthly on projects across America, covering all aspects of construction. In 2005, $9.05 billion in construction risk was evaluated on Quality Built projects in 26 states. This amount represented a documented conservative savings estimate of $9 billion to the construction industry.

More than 225,000 homes, condominiums and high-rises have been completed under the Quality Built system, with remarkable success in abolishing construction claims through progressive quality assurance. Quality Built is the only quality assurance company in the country endorsed by the nation’s largest builder insurers, including ACIG, Arch, Contractors’ Choice, HCIC, Lloyd’s of London and Pro Builders.

Today, Stan Luhr, CEO, continues to focus on technical aspects of Quality Built’s technology program enhancements and jobsite training. Luhr is in high demand as a public speaker, and lectures on quality issues at builder trade shows, insurance conferences and training seminars nationwide.

Beth Michaelis, President and CFO, oversees business operations and educates insurance leaders on the importance of quality assurance. Both Luhr and Michaelis devote significant personal and company resources to support charitable organizations, believing that philanthropy is an important part of their personal and business culture. Each year, hundreds of volunteer hours are donated by Quality Built employees, providing the community with holiday events, back-to-school programs, computer training and business mentoring sponsorships.

Quality Built corporate headquarters is located in Poway, California, with a training center and computer backup facility located in Aurora, Colorado. The company plans to purchase a third building to support its expansion efforts by mid-2006 and increase its 170 employees and 450 licensed independent consultants to more than 300 and 800 respectively by the end of 2006. Quality Built revenues for fiscal 2006 are projected to exceed $27 million for this privately-held corporation. Company revenues are expected to exceed $40 million by fiscal 2007.

• Established in 1994 as a division of Pacific Property Consultants (PPC), a construction defect consultancy, Quality Built spun off as an independently operating company in 1994.
• Quality Built is the largest independent risk management and quality assurance consultancy in the country.
• Corporate headquarters located in Poway, California, with a training and data center located in Aurora, Colorado.
• More than 2,800 active projects under way with 1,400 builders in 26 states and Washington, D.C., spanning every region of the U.S., with Field Representatives able to serve in all 50 states in the nation.
• Quality Built customers span every area of the construction industry including: single-family and multi-family homes, mid-rise and high-rise structures, commercial, mixed-use, condominium conversions, urban infill, steel-framed and wood-framed projects.
• Quality Built customers enjoy the industry’s lowest risk losses.
• More than 225,000 homes have been completed utilizing Quality Built systems since 1994.
• Approximately 170 employees in Poway and Denver, and more than 450 licensed independent consultants throughout the U.S.
• Quality Built programs have resulted in $1.01 billion in direct risk savings for its builders in 2005.
• Company revenue reached $27 million in 2005.

• Quality Assurance Site Observations™
• Builder Risk Assessment™
• Change Process Boot Camp
• HOA turnover inspections
• Builder training and education
• Technical Plan Review™
• QB Closure Link™
• QB Builder Link™
• Diagnostic and building performance testing
• Framer ID™
• QB Rapid Response™
• QB Resident Expert

• 1,962 project starts
• 55,223 homes completed
• 80,100 homes under construction
• 8,750,696 “Checkpoints” answered
• $9.05 billion in construction risk verified
• 1.4 million digital photos archived
• $1.01 billion of verified construction risk eliminated on Quality Built jobsites