5 Things to Consider Before Engaging with a Builder
Building your dream home is a huge undertaking, and for most people, it's a project you'll only do once in your lifetime. Just like with any major life decision, it needs proper planning and education to succeed.
In my "Before You Build" consultations, we sit down and spend time considering the key elements of your dream home build and answer important questions. Doing this before you start building helps give confidence in your decisions and will save thousands of dollars in the long run.
When you are looking to select a builder for a residential construction project, there are a few essential things to consider to ensure the project is set up for success right from the start.
Here are 5 things to consider before engaging with a builder:
1. Understand Your Project's Priorities and Boundaries
Let's start with the basics: Before you dive into your project, make sure you're crystal clear about what you want to achieve.
Every construction project revolves around three essential constraints: Time, Quality, and Cost. Typically, you can achieve one or sometimes two of these simultaneously, but rarely all three. Here's a breakdown of each constraint:
Think carefully about how you would answer these questions:
Time:
Does the project need to be completed by a certain date?
Cost:
What is the budget, and is there sufficient contingency set aside?
Quality:
Am I expecting to have influence over the design, or am I looking for a builder's design?
Before diving into your project, consider which of these constraints is the most important for your project's success. Knowing your top priority will guide your conversations and decisions throughout the project's lifecycle.
2. Consider Your Construction Pathway Options
Picking the right builder is a make-or-break choice in any construction project. Surprisingly, you might have more options available to you than you realize!
There are several established construction pathways available, each with varying risk profiles. For first-time home builders, four common procurement options include:
a. Developer for Off the Plan Construction
b. Registered Builder for Design & Construction
c. Registered Architect for Design and a Registered Builder for Construction
d. Draftsperson for Floorplan and Specifications Design, and a Builder for Construction
There isn't a one-size-fits-all procurement model for every project. Each option should be evaluated based on your willingness to take on cost, time, and quality risks. Take your time to weigh the pros and cons of each pathway before making a decision.
3. Have a Must-Haves and Nice-to-Haves List
There is nothing worse than spending months on a design, only to find out it's not within budget. It happens to the most experienced project managers!
Being conscious of scope that is a nice-to-have and not necessarily a must-have will allow you to quickly get back to budget if costs escalate. Being prepared for known risks like this will take the stress, disappointment, and overwhelm out of the equation.
4. Do Your Research and Check Financial Stability
When you are ready to speak to builders, try to keep an open mind and speak to a few in your area. Ask them questions such as:
Who will manage authorities' permits and applications?
Ask to review a construction program and ask what risks would cause delays to the project and how the build team will help avoid those risks.
How can I be sure your company is financially stable?
Will a dedicated site manager be present onsite for all trades work and keep me informed of construction progress?
5. Be Prepared to Negotiate
Once you've shortlisted the parties you trust the most, it's time to negotiate. Consistency is key during negotiations, so be sure to ask the same questions to each party. This will help you identify who is willing to work with you to achieve your goals.
It's also very important to be clear about what's included, excluded, and undefined in your contract. Don't worry, I can help with this!
I hope this guide has helped. If I can leave you with one message, it would be that a successful construction project begins with a clear understanding of your priorities and project constraints.
Happy building!
Annelyse.
Ready to take the stress out of building your dream home?
As much as we'd like it to, things don't always go to plan…
👉 Issues have come up that you didn't realise could happen, and you're struggling to solve them
👉 Your builder is suddenly speaking a language you don't understand
👉 Figuring out who does what, and by when isn't as clear as you hoped
And before you know it, you're staring sadly at the concrete slab holding yourself back from calling your builder for the 17th time in one day…
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Written by Annelyse, Building Contract Enthusiast, Project Manager, and founder of Build Together Project Management.
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