How to avoid the pitfalls of building
Unfortunately due to the complexity of the building process it is common for the builders quotation not to include all the items which are required to complete the home, some items which are often not included in quotations are additional footings, stormwater, rainwater tanks, driveways & perimeter paths and landscaping.
Blogger: Darren Standish, Property Prosperity
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This is why it is essential that before deciding on a builder that you first have some plans drawn up to be clear exactly what it is you would like them to quote you on.
Another advantage of drawing plans up independently is that you maintain copyright over the plans. Many people are not aware that if a builder draws the plans up for their clients then the builder owns these plans. This means they cannot shop around to other builders with these plans and ensure the best possible price.
It also means that if you choose to leave the builder due to cost blowouts or time delays it is very hard to do so as the builder will not let you take those plans to another builder. The builder knows that you are unlikely to switch builders as this will involve you having to change the plans to avoid copyright which means you have to re-lodge the plans to council and redo all the engineering work done to date. This can result in significant additional costs and time delays.
It is advisable that you attempt to fix the price of the contract with the builder prior to signing the contract. This will ensure that you do not get any significant cost blow outs during the course of the build. To fix the price of the build you may have to provide full working drawings and engineering plans to the builder so they can correctly calculate the appropriate footings required.
A Development Consultant can assist you with preparing this information and may also assist with your negotiations with the builder to ensure that the contract includes all items required to complete your new home.
About Darren Standish
Darren Standish established Property Prosperity in 2004 initially as a property development company, however after repeated requests for assistance the business evolved into a development consulting business.
Property Prosperity was initially focused on assisting clients with subdivisions and negotiating with councils to ensure that clients maximized their return on investment. Over the years additional services were gradually added to ensure the development process was as seamless as possible for its clients. We expanded into offering individually tailored finance solutions and then added Property Development Analysis, Property Sales and a Builder Broker Services.
Darren is the overachiever of the team and has more qualifications than your average university graduate. As well as completing a Bachelor in Economics, Bachelor in Commerce and post graduate in Accounting he subsequently went on to complete a Diploma in Financial Service, Diploma in Real Estate and Certificate IV in Building. He is a qualified Certified Practicing Accountant (CPA), a licensed Real Estate Agent, licensed Mortgage Broker and holds a Builders License.
