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Building a new home is a big investment. And as with any investment, you want a qualified individual or group to know exactly what they are doing so they can give you the best possible return on your investment. That’s why it’s so important to find a builder who has experience, knowledge and a good reputation.

Prospective clients regularly ask a number of builders to tender for their project on the assumption that they will get the best deal possible when choosing who they will appoint to complete their project. But the fact of the matter is, tendering has very little appeal to builders because the process can be very time consuming and costly to the builder. When a client chooses a tender on the assumption that they are the lowest bidder, it usually results in the dissatisfaction of the homeowner. This is because in the bid to get the job, corners can be cut by unscrupulous builders and the overall quality of the project suffers.

Avoiding the many problems associated with tendering and choosing the lowest bidder can be easily eliminated with basic research and credibility checks on your behalf. One of the best ways to get that information is to ask people you know directly who have hired a builder in the last few years. They’ll let you know exactly how they feel about the builder and give you a heads up about their strengths and weaknesses.

With the advent of the internet, it’s easy to compile facts and figures about various builders and the work that they have done in the past. It’s a good idea to use the internet to narrow the list of builders by location, specialties and abilities to ensure you get the best fit for your particular project.

Besides basic references, it’s also a good idea to check on prospective builders licensing and insurance through Fair Trading and by asking the builders you are interested in to provide copies of these documents. Always ensure your builder has the correct licence and insurance requirements before signing any agreements or contracts. A builder who is associated to local building organisations doesn’t necessarily mean they are a quality builder (speaking to past clients and seeing past & current work is the strongest reference), but it does show commitment to their trade and increases their knowledge about new building methods and materials.  In Australia the two best known organisations for builders to be associated with are HIA (Housing Industry of Australia) and Master Builders.

Once you’re set on a quality builder, negotiations can be made to find the best project design at a price that will fit your budget. This is a great way to still get the quality, reputation and service of a reputable builder that you’re sure will give you the quality home you want and deserve, while still getting the most affordable structure possible—all without the hassle and inaccuracy that tendering can sometimes create. 

Many builders work directly with architects and designers, allowing your home to be designed and built exactly to your specifications while remaining in a price range suitable to your budget constraints. Designers and architects should all fall under the same scrutiny that your builder did, so choosing one that has a reputation for quality, experience and customer service.  Choosing the right partners and designing and building your project with them is definitely the best way to ensure value for money and satisfaction with the final results at the end of the day.

Pros and Cons of Tendering for Residential Building

For any home owner the cost of renovating or building a new home is a significant purchase.  Naturally you need to ensure you are getting the best price possible, however, it is also critically important that you select a builder who will deliver a high quality project.

Clients and Architects regularly ask a quantity of builders to tender for any given project.  However, there are a lot of factors that clients need to consider before choosing who to appoint.

Tendering has little appeal for Builders, because it is a very time consuming and expensive process & regularly the lowest price is selected.  If a builder wins on a low price and then cannot or does not deliver the expected quality, the long term cost to the client will be massively higher financially and emotionally, putting you and your family under significant stress for an extended period of time.

1)      Cost of Tendering

If a tender is prepared thoroughly it will cost a Builder thousands of dollars put together.   This cost is made up of work contracted out to Quantity Surveyors and setting aside several days to organise plans, contact all relevant trades, detail the scope of work and send it out for pricing.  All quotes then need to be followed up and a tender document or tender pack prepared.

2)      Comparing Prices

If 4 builders tender on a project and 3 have similar prices and one is significantly less, warning bells should be ringing.  For one of four tenders to be much less than the others it suggests it was rushed, items were left out and/or they are not quoting to allow for all the subcontracted work to be delivered by high quality tradespeople.

3)      Price vs Value

Staring a building project is like starting a long term relationship.  You want to be sure you select someone that you can trust.  If you choose the wrong partner to save 200K on a large job, you may well find that it costs you 700K extra by the end of job or worst case that you spend all the money and do not get a good result.  If you have bad building work done, the cost to repair the work second time around will be much higher than having it done correctly the first time.   

4)      Asset Value

Building is an investment.  When you are building or renovating the cost to build should increase the value of your asset.  Cutting corners is likely to see the impact on your asset either reduced or minimised.  All clients have a budget and you need to choose a building partner who will respect your goals, work with you to deliver the project within the set budget and deliver the best possible quality possible within that framework.

5)      Reliability

Structural quality guarantees are set at 7 years by the government.  If you choose the wrong builder though, as demonstrated by many horror stories on TV, it can be very difficult, almost impossible to get them to help you when things go wrong.  For this reason it is critical to pick qualified, experienced builders.  You need to see the quality of the work, meet or speak with several former clients and know that they can be relied on to assist with any warranty work, if required, when required in the future.

A recommended alternative to Tendering

To avoid the pitfalls of tendering and choosing the wrong partner or a misleading price, there is another less known and very effective option. 

Do your research on the builders you are interested in; call past clients, visit past jobs, meet their team, find out their company history and check out their licences.  Select a great builder that you trust and would like to work with, one who you can be sure will deliver the result you want for your home. 

Set your budget with them (and your architect where appropriate) and work as a team to engineer the project costing so that you can be confident you are getting the look, quality and price that will work for you, delivered by a reputable, high quality building company. 

The value for you, your family and for your home asset will be well worth the time you spend researching and engaging the right building partner for your project.

One of the greatest concerns of those opting to build or renovate their home is of course price. No one wants to engage in an endeavor in a money pit. For many, once a budget is in place there is very little margin for error.

Pre-Qualification

Unless you are one of the fortunate few that are able to pay cash for your building or renovation project, your first step should be to get pre-approval from a lender. Lest you have an established relationship with a banking institute, you will need to shop around and find a lender that will handle your type of project at a competitive rate. Once a financing establishment has been selected, you will need to obtain pre-qualification. Like with any other type of financing, you will need to provide documentation for income, debt, and go through the credit check process. Be sure to thoroughly review the interest rates and all terms as these may vary from a typical home loan. Once this tedious step is completed, you will know what kind of budget you have to work with.

Selecting a Builder

Once you know the exact amount of money that you will be able to work with, you will need to begin the steps to select a qualified builder. If you do not have a relationship with a builder, you may wish to begin by contacting a local housing association or community business group to initiate the selection process with their members. By doing this, you can be assured that the members are legitimate business people that are serious about their industry. This also gives you more avenues for recourse in the event of a grievance.

During your selection process, be certain to inquire as to how significant the builder’s role will be in the project, how much will be subcontracted, and how much will rest on your shoulders. Don’t hesitate to express what capacity you intend to be involved and what you are expecting from your builder. Ask how close to budget your builder usually runs. Find out the experience level of the builder and his relationships with the building authorities in the area. Don’t hesitate to verify licensing and insurance. You must have open communication with your builder and trust that they will not take advantage of an excess in budget. Find out if the builder has a working relationship with an architect of choice.

You Will Stay within Your Budget

Once you’ve decided on a financing institute and a builder, you need to put all your cards on the table. If you’re not comfortable financing the entire amount that you have been pre-qualified for, do not use that as your budgeted amount. Let your builder know your upper limit and be certain that you leave 10 to 15 percent margin for error. Go through your list of must-haves, preferences, and can live with outs. You must realize that if you change your decisions during the construction or renovation, it will affect the budget. Therefore, you need to be as rock solid as possible in your initial decisions to remain within the boundaries you have set.

With a flexible financial provider and qualified builder and his team of associates, you will stay within your budget providing you do not make significant changes to your plans after it is set in motion.

Keeping Your Home Building or Renovation Project on Budget (23 KB)

It is the desire of current and potential home owners to persue the ideal of building a "dream home". After years of living in a house designed by other people, homeowners want to have their own ideas developed so that they can have the lifestyle that they wish for. So begs the question, “How can I build a dream home with confidence?”

There are many options available to the home owner and by talking to a competent builder ideas can be discussed and options developed.

Some of the initial questions that need to be answered are:

• Am I going to renovate
• Can I buy a block of land where I want to live
• If I can buy land, will it be big enough and in the right area
• What is the cost of pulling down and disposing of an old house on a desirable block of land
• What do I want to build
• What type of materials should I use
• What type of building would have good resale value
• Will my ideas be approved by council
• How much area do I want outside
• Do I want a pool
• Do I want a high maintenance garden

How do you find a trustworthy builder?

The experience of a builder who has been in the industry for many years is invaluable in deciding what, how and when to build a new home.

An absolute must is to use a builder who is a Registered Master Builder and a member of the Housing Industry Authority. When a builder who does not have these credentials is used, the home owner will have very little comeback should anything go wrong. If you want to build with confidence it is a good idea to eliminate any possible situations where you are not covered.

What is the builder going to be able to help you with?

Once a project is being started there will be many regulations to deal with and a myriad of decisions to make.

A qualified builder can help you through the maze of decisions that you will face. They can take you step-by-step through the process of building your dream home.

Here is a list of processes that you can do on your own, in conjunction with your builder or totally hand over to the builder:

• Budgeting
• Finance
• Council and other agency approvals
• Land selection
• Overall concept design
• Materials choice
• Plans creation
• Fittings selection
• Colour schemes
• Interior design
• Landscaping

By co-ordinating all these actions with an experienced builder you are eliminating the possibilities of mistakes. Mistakes that can sometimes cost thousands of dollars.

Building is an expensive business, so it pays to take all precautions possible when planning to build a new home. Taking the right steps to finding a good builder will allow you to build a dream home with confidence.

How To Build A Dream Home With Confidence (29 KB)

In recent years many new home buyers are looking to go ‘green’ with their new homes. There are quite a number of different design features needed when you are going to build a ‘green’ home and it pays to have a very good knowledge of what is needed because there are some quite strict regulations about what is ‘green’ and what is not.

There are indications that the request for a ‘green’ home is going to become more and more prominent as years go by and any builder worth their income will have researched exactly what to put in a ‘green’ home and how to design it so that all the best advantages are taken care of.

The design and products used are paramount to the success of owning and living in a ‘green’ home.

Building for temperature control

One consideration with building a ‘green’ home is finding the right block of land, or should I say finding a block of land that is facing in the right direction. The idea behind a ‘green’ home is not to use air conditioning or have heating, so it is important that the home is facing north to catch the winter sun and that the layout of the rooms within the house utilise the best use of the winter sun and also the summer breezes.

Window placement, size, structure and coverings also have significant impact on the home. Windows need to be large, allow good light, opening sufficiently to allow the breeze through the home, usually have double glazing and have window treatments that cut out the light at night.

What are other features of an eco friendly home?

• The use of environmentally friendly products
• A carefully designed home with northern aspect
• An outdoor living area protected from wind and rain
• Light coloured roof
• Cross ventilation throughout the house
• Solar heating, especially hot water
• Fully insulated ceilings and walls
• CFL lighting
• Living room facing north
• Garage not directly leading into the house
• Big eaves
• Water tanks

Planning an eco friendly home

If owning an eco friendly home is your dream then sit down with an experienced builder who will be able to talk to you about how a house can be designed to fall within the requirements of a ‘green’ home.

It is not all about the design when building it also comes down to the fact that eco friendly homes use building products that have reduced chemical emissions.

The cost to build a ‘green’ home can be substantially more initially but the savings can be huge over time. Savings are in the nature of power, water and very much in the healthier lifestyle experienced by the family. Another benefit that has not been mentioned either, is the fact that ‘green’ homes have a better than average resale value.

Employing A Builder To Build A ‘Green’ Home (27 KB)

When engaging a builder to either build your new home or conduct renovations to your established home it is important to select a builder who will provide you with value for money and is someone you feel you can trust for the long term. A quality builder will provide you with a perfect building experience by managing the product on the ground and getting involved in all aspects of the construction.

When you negotiate your way through the various builders on your journey to selecting the builder best suited to your needs find out exactly what role the builder intends taking, or more precisely, what is the structure of the business. The only way to find out if a builder will be doing all that you expect of him ask a series of simple questions such as:

• Will you be on site supervising the work of sub contractors?
• Will you take responsibility for the schedule of the building process?
• Will you liaise with the relevant institutions on issues relating to finance and contracts?
• Who will be calculating the material and labour needs for this project?
• Will you arrange the necessary inspections with Council?
• Are you able to assist with any further discussions / negotiations with Council or regulatory bodies.

While many builders still carry out all of the traditional functions some companies have become highly developed and are able to offer high levels of supervision during the construction process. You are hiring a builder for a reason and that reason is to make sure that he / she is able to manage the overall building work. You have chosen your builder and you have a right to expect that that is who you are dealing with rather than a sub contractor. You will be sharing a very special relationship with your builder so make sure during the selection phase you select a builder who you can trust based on their reputation.

While all builders will see your building project through to completion you must be satisfied that the builder you select will provide you with the exposure that you desire.. A reputable builder will welcome questions from you when you are trying to find out if he is the right person to make your building dreams become a reality. Expect nothing but the very best from your builder and this includes being available on site and taking care of the finer details of your building project.

What is Your Builder Really providing and What is Your Builder Meant to do (27 KB)

When selecting a builder, there are two important words to remember - Reputation and Experience. Your choice of builder will be one of the most important choices that you will ever make and will mean the difference between a great building experience and an experience which will leave you stressed; emotionally, physically and financially. For those who are looking for a builder for a brand new home, renovations or for a complete rebuild it is important to start considering your choice of builder early in your planning stage.

But why do you need to start selecting a builder early in the process I hear you say; simply because a quality builder will be able to assist in many of the complex decisions you will need to make. By having your builder assist you with problems such as site conditions and the construction design building issues which can easily exceed your budget can be contained. A quality builder will assist you with your decisions so that you can ensure that your construction project will remain within your unique budgetary needs.

The main decision that you are left with is which builder will make your dreams become a reality. This is a decision that you want to make after considering the builders Reputation, Experience, Competence, and Professionalism. Essentially when selecting a builder you want to consider the following criteria:

Reputation – Does the builder have a good reputation with an uninterrupted client list? Generally, a builder who operates in a specific geographical location will have gained a good reputation for providing quality-building services. I recommend that you ask for a client list so that you can contact past clients and gauge their response to your questions. A builder with integrity will include the good and the not-so-good so you get to see a “warts and all” view, just remember that we all have our own perception about an event!

Local Knowledge – When selecting a builder look for one who has extensive building experience in the area of your construction project. This will ensure that your builder will have local knowledge of Council Regulations, building trends, site-specific conditions and most importantly know exactly what can and cannot be constructed in the local area.

Construction Type – You need to select a builder who is experienced in the construction type you are seeking. Look for a builder with extensive building experience in providing constructions in your price range and the style you are looking for.

Financial Stability – As with any business some builders lack the financial stability to provide you with a quality construction. You need to be sure that your builder has a strong financial reputation and the ability to take your construction from inception right through to completion without any financial hiccups occurring throughout the process.

Compatibility - You are going to be spending a lot of time with your builder so make sure when you go through the process of selecting a builder you make sure that you are both compatible. By selecting a builder who is easy to communicate with, personable and professional you can be assured that many stresses will be relieved during the construction process.

There is a lot to consider when selecting a builder, but the most important thing to consider is whether the builder can provide you with exactly what you want. Don’t be rushed into a choice with a pushy builder make sure that you feel comfortable with the builder you select. Selecting a builder is a very important decision and you have to be sure that your choice will result in your dreams becoming a reality without any surprise expenses.

As a final note, I strongly recommend that consideration be given to viewing the “event” as a team process, the building process can and does throw up some interesting questions, particularly when working with existing structures and work “in the ground”. Much more can be achieved by approaching a building project from the mindset of “team”.

Selecting a Builder (26 KB)

Whether you are building your own home or conducting renovations to an established home this is likely to be one of your greatest investments. You have a housing vision, but will this become a reality? As an owner builder you will be forced to take on all the risks and responsibilities that would normally be undertaken by a contract builder who has years of experience and knows how to manage all of the risks involved. Before going it alone as an owner builder make sure you find out all that will be involved for you or your home building experience could become the nightmare your Mother always warned you of.

There are many risks involved as an owner builder including:

• Poor estimation leading to higher building costs
• Faulty work and work that is non-compliant with building codes
• Inability to effectively evaluate the work of tradesmen
• Inability to effectively project manage
• Work continuity
• Work completion
• Where is it that you earn your income, can you afford to have your attention taken away from that?

As you could well imagine these are only some of the risks that are involved as an owner builder. While many people may feel comfortable taking responsibility for these risks it is not a decision that should be taken lightly. If you do not feel comfortable dealing with all aspects of the building process or have any reservations about your ability to manage the building process then it may be a more feasible option to use the services of a qualified contract builder.

By using a qualified contract builder you can be assured that the risk you will be gaining the expertise of a professional who has been in the industry for many years. This expertise alone ensures that the builder knows how to go about all of your building needs with the knowledge and experience to make the right decisions bring your building project in on budget. A quality contract builder has the added advantage of knowing industry trends and expectations so will be able to advise you on the best way of managing your building project.

Building a new home means more than simply having a vision of how you want your new home to look. There are many legal and compliance issues which need to be considered and a qualified contract builder will be able to negotiate this complex web of knowledge ensuring that you will be able to make your vision come to life. A qualified contract builder will be able to take you through the home building process with less stress and with the piece of mind that nothing will be left to chance. While many people have shown success as owner builders, many others have faced their worst nightmare. A qualified contract builder has the years of experience to make sure that your home building project runs smoothly and according to your plans. The only choice that you are now left with is choosing the contract builder who will be able to meet your unique needs!

Owner Builder versus Contract Builder (27 KB)

Whether you need a builder for a new home, renovations, extension or complete refurbishment, you need to be sure that the builder you select will be able to achieve a stunning home, on time, on budget and create great relationships for all the stakeholders.

It is estimated that Australians will spend about 65% of their lives inside their homes so there is enormous value in taking the time to make sure that the builder you choose can ensure your vision becomes a reality.

Before you sign a contract, make sure you get answers to the questions that will identify the builder who is most suited to your needs.

There are many important issues to consider; logistics, costs, site selection, and ongoing customer service being just a few. The following is a suggested list of questions to ask your potential builders -

1. Can you explain your business structure, how does it benefit our job?
2. How much work do you currently have on, when will it complete?
3. What other work do you have to start, how will that impact on our project?
4. What is the expected duration of construction?
5. Do you have any recommendations to improve or speed up the job
6. Can you provide a program (bar chart is visually good!)
7. What is included in your submission?
8. What elements should I take particular note of.
9. What work is not included in the submission, why not?
10. Are their any hidden or extra costs that may come about?
11. Do you have plans and pictures of previous work done?
12. Can you provide a list of your most recent clients, can we speak with them?
13. What are the standard features and what will cost me more?
14. What warranties and guarantees will you / the manufacturer offer to me?
15. Does any work conducted by sub contractors void any warranties or guarantees?
16. How do your prices compare with other builders and why?
17. How long have you been in the industry?
18. What experience do you have?
19. Will I be able to access the home during the building process?
20. Site meetings – When / where?
21. What professional memberships and registrations do you hold
22. Are you insured and to what level, can you provide a Currency Certificate for each?
23. Can I be sure that all construction you carry out will be fully compliant with all laws and regulations?
24. What responsibility do you take if something is found to not to compliant?
25. What is the “defect liability period”, how long and what is covered?
26. Have you done any other work in this area? If so where?
27. Have you ever filed for bankruptcy?
28. If I have any questions during the building process, who should I contact?
29. What hours are you available, how do I contact you?
30. Do you have a dedicated customer service policy before, during, and after the construction-taking place?

Although this is not an exhaustive list, it will make sure that you are on the right in building your confidence to proceed. The domestic building process is complex to execute and the value you should be looking for is one of “support” from your partner (builder) in this project.

Remember, be inquisitive and ask questions, my important recommendation for you, is that you look to make and be part of a team, this mindset encourages a united approach to start and finish the project where everyone partakes and is a winner.

Questions to Ask Your Builder (Before You Sign Anything) (23 KB)

Non-profit business network, Business Swap, held it’s prestigious awards ceremony recently at the National Convention held in Coffs Harbour, NSW.

Now in it’s 35th year, the Business Swap Annual Awards are designed to celebrate and showcase the many achievements of it’s members, including the best run club within the Business Swap network. This year, local President of Northern Beaches Business Swap took out top honours of President of the Year.

Jock Wallace, National President of the Year from Seaforth says “ These prestigious awards recognize the high quality and value of professional development we deliver to business people in Sydney’s Northern Beaches region. There are a few networking and business groups operating in the area, but weekly delivery of the type of high quality business and personal development content is very rare. Business owners and professionals, really appreciate the positive environment and support they receive from guest speakers and other members.”

Northern Beaches Business Swap is one of 12 branches within the international business network (Business Swap). Business Swap is a non-profit business network for professionals, business owners and the self-employed, that helps maximise members potential through personal and professional development by regular education, motivation and experience.

Northern Beaches Business Swap host business seminars and professional education groups every Tuesday morning. For more information please visit http://www.businessswap.com.au/

Local Business Leader, Jock Wallace, Awarded at National Event (20 KB)