CHOOSING A BUILDER

Do your research

Finding the builder who's right for you is not as simple as picking up the Yellow Pages. On a big project, you may be working closely with this individual for several months, so you want to do everything possible to ensure that you make the right decision. Here are some good places to start your search:

• Seek referrals from friends, family, neighbors, co-workers, and others who have had building work done
•  Talk to independent trade sub contractors, building materials suppliers, architects and engineers
• Look for builders with professional accreditations such as being Members of the Housing Industry Association, Master Builders Association and Australian Institute of Building

Once you have identified some strong candidates, do even more checking to ensure that these are the kinds of builders with whom you would like to do business. Call the Building Practitioners Board to verify that the builder has the appropriate registrations for the type of work being undertaken and if there are any unresolved complaints filed against the builder.

Buyer Beware

Your excitement about the building process may be understandably tempered when you hear stories about unscrupulous builders who accepted large deposits and then skipped town, new roofs that leak during a heavy rain, and jobs begun but never completed. It's enough to make anybody wary. However, you can protect yourself by watching out for these warning signs:

•  You can't verify the builder’s trading name, address or credentials
• The builder is not willing to offer references or the references provided were not happy with the builder’s work
• You are asked to pay large deposits up front or for the entire job in advance
• The builder will accept payment only in cash

What to Look For, What to Ask

When you hire a builder, you are buying a service rather than a product. The quality of the service the builder provides will determine the quality of the finished project and your satisfaction with it. Listed below are some qualifications you will want to explore and questions you will want to ask when you interview a builder.

Business Experience And Management

Does the builder:

•  Maintain a permanent mailing address, email and emergency phone numbers? You want to be able to reach the builder quickly and easily – especially at critical times
•  Carry insurance that protects you from claims arising due to property damage or jobsite injuries during the course of construction?
•  Have an established presence in the community? How long has the company been in business? Longevity usually suggests financial stability
•  Maintain solid relationships with experienced independent trade subcontractors (such as carpenters, plumbers and electricians, etc) and work with them as a team to keep your job running smoothly?
•  Possess a trustworthy reputation among customers, colleagues, and those in the building industry? -Ask for a list of building materials suppliers and call them to see if the builder has an account or pays for materials on delivery. Most suppliers are willing to extend credit to financially sound companies
•  Have a track record of successful projects similar to yours?
•  Participate in a trade organization such as the Master Builders Association or the Housing Industry Association? Membership reflects a builder’s commitment to professionalism in the building industry

Construction And Technical Expertise

Does the builder:

•  Have a working knowledge of the many types and ages of homes in the area? A sound structural and architectural knowledge of what is likely to be behind a wall or under a floor helps the builder provide reliable estimates. Extremely low quotes may reflect a builder’s lack of this knowledge and a poor understanding of the actual costs involved
•  Know what products & materials would likely be used for your project? Offer an array of options when selecting products, materials, & techniques?
•  Understand the scheduling issues required to begin and complete your job within your required timeframe?
•  Arrange for the building permit and other statutory permits?
•  Offer a six year Home Owner’s Warranty?

Making the Decision

You've done your research and asked all the right questions, and now you're ready to hire a professional builder. However, before you have a contract drawn up, there are still a few more items to consider. QUOTATIONS Ask for a written quotation of the work to be done based on a set of plans and specifications. Make sure that you're comparing “apples with apples”. Quotations from different builders need to be based on identical project specifications and scopes of work. However, keep in mind it's a mistake to let price alone drive your selection. If you like a builder and are confident that he would do a good job, don't automatically switch to another builder (who may not rank as high in customer service, competence, communication, etc.) if the quotation is more than you can afford. You may be able to reduce the amount by making a few modifications – for example, selecting less expensive appliances or fixtures or using laminate bench tops rather than granite or marble, etc. While your budget is always a factor, beware of low quotes. Many homeowners think nothing of spending tens of thousands of dollars and opening their homes to virtual strangers whom they have selected solely on price. There can be many reasons for a low quote including, lack of experience, low quality materials and workmanship, and incomplete proposals or tenders. The owner then runs the risk of the builder going broke during construction, not completing the project, or cutting corners in a bid to cut costs to make up for what has been missed in the low quote. That's why it is important to select a builder by quality, value, and reputation.

The Right Fit

Building is a very personal process. The builder you engage will be part of your home life for several weeks or months, so it's important to make sure that your personalities work well together. If, for example, you want to know every detail as the project progresses, you probably won't be happy with a builder given to one-word answers. The bottom line is: Do you feel comfortable with this individual? A strong rapport and close communication with your builder will help make any job go well.

Understanding Your Contract

Once you've picked a builder, no work should begin until you have reviewed and signed a written agreement or contract that spells out in detail the what, where, when, how, duration, and cost of your project. What should your contract include?

•  The contractor's name, address, telephone number, and registration number
•  A visual representation – working drawings, floor plans, elevations, sketches - that shows what the builder will do and where
•  The timeframe for the project, including approximate start and completion dates
•  The price and payment schedule
•  Detailed specifications for all products and materials. The description of each item should provide enough detail to clearly identify it, such as the brand name, model number, color, and size. This section of the contract may also describe any materials to be selected later, who will choose them, and the amount of money (called a Prime Cost Allowance or Provisional Sum Allowance) set aside to pay for each item
•  Information on who will obtain and pay for necessary permits and other approvals
•  Insurance information
•  The procedures for handling variations
•  Provisions for conflict resolution in the event of a contract dispute

Once you have read your contract carefully, review it with your builder to clarify any wording you do not understand. If you still have questions after this meeting, you should discuss them with your solicitor. When all your questions have been answered, you're ready to sign the contract. If you do sign a contract and then have second thoughts, remember that under the Section 31(1) of the Domestic Building Contracts Act 1995 a "Cooling Off Period" may apply. Under this Act, you have up to five business days to cancel the contract.

Further Useful Information

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