Tuesday, May 26, 2009

Selecting a Builder

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”.

Owner Builder versus Contract Builder

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?

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!

Questions to Ask Your Builder (Before You Sign Anything)

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.

Should I Stay or Should I Go – Moving Out While Construction Happens

When renovating your established home there will be many decisions that you will have to make - thankfully your selected builder will be able to help you out with many of these decisions. Depending on how extensive your renovations are, one of the choices you may have to make is whether you should remain in your house while renovations take place or find suitable short term accommodation. This is a decision that is best made in consultation with your builder. Your builder will be able to explain to you exactly what you can expect should you remain living in the home while renovations take place.

Builders can undertake many renovations with minimal inconvenience to you but it is important to quiz your builder on any inconveniences you can expect. Failure to quiz your builder may result in you waking to find that your shower and toilet are unavailable. A skilled and professional builder however will negate your need for quizzing as they will be upfront and open in their communication and will list for you all there is to know. Can you be sure your builder will prevent any unexpected accommodation surprises coming up? The only way to be sure is to make sure that you select a reputable and quality builder.

If your renovation project is extensive, your builder will advise you via a “Job Program” whether they can undertake the construction work systematically allowing you to use certain areas of your home or whether it will be necessary for you to find some short or long term accommodation. Remember that your home will become a building site during your renovations and it is essential to rely on your builder as well as your own common sense for advice on the hazards and inconveniences that will be present. Should you have a young family it is even more important to ensure that your children remain safe from the building environment.

Renovation work will create a very different environment and for some people they would prefer to use accommodation while the building work is being conducted. This allows them to return to a perfect home without the hassle of having tradespeople walking around the house. This is a personal choice and you do not need advice from your builder if this is the case. A professional and reputable builder may however be able to work in and around you so that your personal space is not impacted upon allowing you the choice to remain in your home. Be mindful in making these decisions that there can be cost implications generated from having the building work move “around you”, your builder will advise.

By choosing a reputable builder, you can be sure that you will receive accurate and reliable information about whether moving out while renovations take place is essential. Home renovations can be stressful, so make sure you choose a builder who will work to reduce the inconvenience that renovations will have on you and your family.

Some more specific things to consider are – safety, dust, noise, disruption to living patterns, dust, available space, intrusion, interruption to services, exposure to weather / conditions, privacy, dust etc! Think carefully!

Building in a Recession

It will come as no surprise to you that there is a global financial crisis. As the threat of a recession looms upon us people contemplating building or renovating a house need to take a few more precautions or risk their very own construction crisis. The current volatility of international finance markets has put a huge strain on many businesses including building companies. For this reason when deciding upon a builder for your construction needs you not only have to consider the cost effect on you but also more importantly – Does the builder have the financial security to withstand a recession. It is of little use to you to hire a builder who is later forced into liquidation before completing your construction; this will only lead to higher costs for you.

Building in a recession is the same as building in any other economical climate with the only difference being you need to place more emphasis in vetting the builder. No doubt you are aware of your own finances; but how much do you know about the business finances of your builder? Can you be sure that they have the financial backing to make it through the tough times? During a recession, consumers need to dig a little bit deeper to ensure that the chosen builder is able to withstand the rigors and demands of a recession. The key is to choose a quality builder who has strong record of accomplishment in continuing to provide quality construction during financially demanding times. There have been many financial crisis’ which have rocked the construction industry many occurring in the 1990’s – Has the builder you are considering been able to show strong performance even with the impact these had on the industry?

With the financial threats we are currently facing it is an important part of your building process to choose a builder who you can trust in tough financial times. It is not hard to find a builder, but what is hard is finding a quality builder who will be able to build your dreams with minimal financial and emotional stress. Sit down with a selection of builders and ask them the tough questions and you will quickly see which builders are most suited to your needs. If a builder fails to answer or even deflects your financial questions then this should be taken as a warning sign.

While building in a recession does have some risks they can be overcome by ensuring that you select a quality builder with a reputation for meeting client needs even in times of heightened financial pressure. A recession is going to be stressful to you as it is without having the added stresses of how your builder is going to perform when things get tough. Make sure you select a builder who you can be confident will continue to build the house of your dreams and will not succumb to the pressures that a recession brings. By choosing a builder carefully, you will negate the risks associated with building in a recession.