Are you ready to Build your Dream Home?

If you're living almost anywhere in Australia (particularly in Melbourne), chances are it's taken you 12 -24 months to obtain a planning permit let alone working drawings for your project! The amount of red tape and bureaucracy we have to go through is more than any one in Australia should - but that's a topic for another day! Once working drawings are in hand, most people are extremely eager to get their project out to builders for tender, but this is the time you really need to sit back, evaluate and understand what the core focus and desirable result is for your project.

Over the years I've have had hundreds of people come to me wanting a tender for their project. The reality is, only a very small percentage of them are actually ready and have a good understanding of their project objectives. You're about to spend what could be the biggest investment of your life, so taking the time and the right steps at the beginning of your project will go a long way to ensuring its successful delivery.

"Every minute you spend in planning saves 10 minutes in execution; this gives you a 1,000 percent return on energy!"

A simple concept, yet very true and effective.

To assist people in maximising the successful delivery of their project, we have developed the 5 things as a minimum that you need to incorporate into your tender process prior to engaging any builders to tender on your project.

1. ENGAGE A SPECIALIST BUILDER

How many times have you seen a builder claim they do "extensions, renovations, new builds, commercial, townhouses, luxury, etc etc" Sure, they probably can do these things, but are they specialists? No, they are trying to cover all bases and not dedicating/focusing their profession and resources to a specific aspect of construction. How does engaging a specialist benefit you?

• You're engaging a builder who's core focus is your type of construction
• Their trades would also be specialist in this field
• You are more likely to get the desired result for your project.
• You will get an accurate tender with minimal exclusions
• As specialists, they can generally complete your project, on time, budget and to the level of quality expected.

If ever you have trouble with your heart, would you prefer a GP to operate on you or a Cardiologist? You're going to go with the Cardiologist because you want a professional who has dedicated his working life to the heart and mastered it on every level to give you the best chance of success! Same goes with your builder. Lets not forget, this could be the most significant monetary investment of your life. Don't put it in the hands of someone who doesn't have the expertise to deliver!

2. DO YOUR RESEARCH

As obvious as this sounds, you'd be surprised how many people don't research the builders they are engaging. We live in such a massive technology boom where everything is literally at the tip of your fingers. Pick up your phone, tablet, laptop, whatever it is and look up your builder. Google search, check out their website, Instagram, Facebook, YouTube, Linkedin, Snapchat, whatever it may be! Many specialists builders will be actively showcasing their project across these platforms because they are proud of their work and want to show it off!

You can often get a good feel of the company your dealing with just by checking out these platforms - go with your gut! You're about to get into a relationship with this builder for the next 8, 12, 15 months! The last thing you want is to have a bad working relationship with the person building your house!

Look up testimonials and don't hesitate to ask your builder/s to speak with past clients, what better source than someone who has already gone through the process you're in right now!

3. DEVIL IS IN THE LACK OF DETAIL!

Do NOT leave your tender open for interpretation, I can't stress this enough! Everyone's (including yours) interpretation of quality, time and cost is DIFFERENT. Don't just think that "Builders Range" or "High End" or "Entry Level" finishes are the same across all builders, their interpretation will completely differ from each other and YOU will get very different pricing from all of them!

You must get an "Apples for Apples" comparison from your builders and the only way to do this is to provide them with the information and details you want included in your project. This should include:

• Specify, fixtures fittings and equipment (commonly known as FF&E)
• Specify finishes - walls, floor, colours, joinery etc.
• For Construction Drawings (or as close to as possible) - All consultants have reviewed the documentation and may only require minor changes for the building permit.
• Specify your Provisional & Prime Cost items - if you have them (See section 5)

How can you possibly assess which builder is meeting your needs for your project if they are pricing different things? Make sure they have all the details they require to give you a conforming tender and one that is easy for you to assess.

4. DEFINE THE PARAMETERS OF YOUR PROJECT

Most people that have been on a management or project management course at some time have heard of the “Project Management Triangle” as pictured above

When defining a project or work task there are boundaries and values that we need to work within. At the beginning of any major project you need to determine what are the key priorities that are important to you, in other words, what do you value the most? Time, quality or cost? The basic premise – there are three main factors to your project & you can have only two of them.

• You can have something FAST & CHEAP but it won’t be good quality
• You can have something CHEAP & GOOD QUALITY, but it won’t be quick or on time.
• You can have something ON TIME and GOOD QUALITY but it wont be CHEAP

Make sure you let your builders know what's important to you. That way they can factor this into their tender and if they are awarded the project, there will never be the excuse of them not knowing your expectations of the project.

5. KNOW WHAT PROVISIONAL SUMS AND PRIME COSTS ARE

In the event where you do not have information at hand or you just cannot make up your mind regarding an element of your build, you need to incorporate the use of Provisional Sums and Prime Costs into your tender and perhaps even the contract for your project.

Prime Cost (PC)

Is an allowance made in a tender or contract for the supply and delivery only of an item or items of material (e.g. taps, baths, light fittings etc.) that have not been selected at the time of tender or before the contract is signed or for which the Builder is not able to provide a fixed price on entering the contract. The Proprietor/Owner would normally make the final selection of the item, which is subject to a PC allowance.

Provisional Sum (PS)

Is an allowance made in a tender or contract for particular element of work which could not be finalised before tendering or signing a contract and which includes the total cost of the supply and installation (e.g. joinery, landscaping, air conditioning, rock removal).

You need to advise your builders what monetary value to allow for your Prime Costs and Provisional Sums. This ties into section 3 of ensuring that you're getting an apples for apples comparison with your tenders. In the event that you don't know what to allow (which is fine mind you, you're not expected to be an expert!) make sure you advise your builders to break out these costs for your review, that way you can compare and determine what's the appropriate amount to allow for.

IN SUMMARY

I hope that this article and video has brought at least one person some value and insight on how they should approach their project. I've seen it all too often where some builders "dangle the carrot", miss lead clients and are headed for a world of stress!

If I can help educate the consumer and perhaps even other builders it will only make the industry a better place for all.

Feel free to get in touch if you have any questions, happy to answer them!