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Will your builder go bust and will you go with him?

Headlines have been full of detail describing the recent demise of  home building companies and the subsequent heartache and sometimes financial ruin of their clients and unpaid subcontractors.

Building or substantially renovating a home is usually the most costly investment a person makes in their lifetime, (aside from buying a completed 2nd hand house).

It can also be one of the most stressful processes to go through; decisions to make on finishes: changes to design when you decide you don’t like the aspect from the kitchen; cost blowouts from unforeseen events, usually in the early foundation stages, and the list can go on!

For Designers and Architects

These concerns apply as much to building professionals as to the homeowner. A designer / architect desires a smooth hitch free building process just as much as the client. A half built home with the Designers sign on does not reflect well.

The Designer / Architect can ease the process by being very clear on the clients budget restraints before concepts are created. This saves time and anguish right from the start.

Tips for a smooth build

Fortunately there are guidelines and options available that can ease the process.

  • Find a builder who has built similarly sized and value projects.

An experienced builder often includes many provisional costs, due to lack of confidence with their quoting process. This will result in extensive variations in price to the contract and possible cost blow outs if the builder has under estimated the provisional sums. We understand that some builders do this as a deliberate strategy.  

  • Your builder must hold Home Warranty Insurance by law for any contract over $12 000.

Don’t be lulled into a false sense of security by this, as the claimable limit is only $300 000.

  •  Be confident that your builder appears to be financially secure.
  •  Be wary of any contractor that asks for high deposits prior to work commencing.
  •  Do not use your builder as your bank.

A reputable builder pays subcontractors and suppliers, according to their trading terms. In the case of subcontractors this is usually the day that the work is completed and checked by the builder. Clients who don’t pay on time create cash flow situations for the builder.

Prompt payment to subcontractors and suppliers ensure that the builder receives the best service available, and this of course benefits the client.

  • Do you like your builder? Can you trust him?

This is crucial as you will have a close working relationship with him during the course of your build.

 At the end of your building process the builder should have created an asset not a liability.

No short cuts should have been taken, and no cost savings made on structural materials.

There is no more satisfying moment for a builder than a completed quality home and a very happy client!

© Dufton Building

http://duftonbuilding.com.au

Author: Nigel Dufton BSC (HONS) Build, M.A.I.B. Bld Lic 41541

Nigel is a Master Builder and Chartered Building Professional with over 32 years post graduate experience in commercial, industrial and residential construction. He has a passion for best building practices and environmentally friendly building solutions. Nigel is the principal of Dufton Building, a highly respected NSW Central Coast building company.

The content displayed is Dufton Building copyright and can only be re-published with the written permission of the author. http://duftonbuilding.com.au/contact/

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