All Topics / Value Adding / How do assess the difference between builders

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  • Profile photo of AALLIIAALLII
    Participant
    @aallii
    Join Date: 2012
    Post Count: 37

    I’m in the process of subdividing a block 1000 sqm into 5 units all attached. This is my first project and any advice regarding builders would be very much appreciated. Its going to be a large investment and I’m expecting it to cost about 10000 to 12000 per square.
    Given this is my first project, could anyone share some tips to look out for when determining which builder to select and some shock stories to look out for would be very helpful. What are some major things usually not included in their quotes that might be of a significant cost?
    Thanks in advance :)

    Profile photo of Mick CMick C
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    @shape
    Join Date: 2010
    Post Count: 1,099

    I would consider hiring a development project manager to overlook the prices, builders, plans in fact the whole project.
    Most ppl choose not to hire a project manager for smaller-medium development because they think it cost too much….but i think it’s money well spent especially if you have not done this sort of work before- Cost: around $4000 for a standard 1 house build…and for a project of your size it will be around $12,000-15,000 depending on complexity and location.

    1. they overlook the whole project for you from council approval to finish
    2. Make sure the price that’s been quoted is within standard and will try find another tradie to do the job faster, better and cheaper – end of the day they are paid a set fee already not a % of your build price
    3.Time, make sure everything is running on time and as planned.
    4. Less headace…

    My parents are semi- professional land developers and have finished 3 development project…currently in the process of starting their 4th and they still use a development project manager to over look the project.

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of AALLIIAALLII
    Participant
    @aallii
    Join Date: 2012
    Post Count: 37

    Diffinetley a good idea. Are project managers accredited by any body or institution so that I may get in contact to find one.

    Thanks again

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    Not that im aware of.

    But they need to be licensed builders themselves ( not a carpenter) – so check they are licensed with no complaints held against them …for NSW
    http://www.fairtrading.nsw.gov.au/About_us/Online_services/Home_building_licence_check.html

    + preferred if they are part of HIA ( housing industry Association).

    Most are either retired builders or builders who no longer want/can’t to do the “physical” work…

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of IP FreelyIP Freely
    Member
    @ip-freely
    Join Date: 2008
    Post Count: 353
    AALLII wrote:
    Diffinetley a good idea. Are project managers accredited by any body or institution so that I may get in contact to find one.

    Thanks again

    You can be a member of either the Australian Institute of Project Managers or Australian Institute of Building

    mattnz
    Participant
    @mattnz
    Join Date: 2007
    Post Count: 574

    That build cost sounds awfully low, if you are doing 2 or 3 storey builds. Allow $1500/sqm+

    Profile photo of AALLIIAALLII
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    @aallii
    Join Date: 2012
    Post Count: 37

    Really? that sounds far too expensive, based on your calculations of 1500+ per sqm it would roughly cost about 300k for a 21.5square double story unit. That sounds a bit expensive? I'm not a builder myself so some help would be appreciated.
    thanks :)

    mattnz
    Participant
    @mattnz
    Join Date: 2007
    Post Count: 574

    Where do you plan to develop?

    Check out this site for estimated build costs
    http://mortgagehouse.com.au/construction/construction-costs-per-square-metre.aspx

    It advises 3br, 2 level brick veneer townhouse, including allowance for common property, medium finish $1,480/sqm

    Profile photo of AALLIIAALLII
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    @aallii
    Join Date: 2012
    Post Count: 37

    Melbourne suburbs, approx 30k from the CBD.

    Profile photo of AALLIIAALLII
    Participant
    @aallii
    Join Date: 2012
    Post Count: 37
    mattnz wrote:
    Where do you plan to develop? Check out this site for estimated build costs http://mortgagehouse.com.au/construction/construction-costs-per-square-metre.aspx It advises 3br, 2 level brick veneer townhouse, including allowance for common property, medium finish $1,480/sqm

    Very handy website thanks for that. Although I'm not sure whether Mortgage have inflated the prices slightly, it just seems a little too high, but I'm no expert so might need to get some proper quotes.

    Thanks again.

    mattnz
    Participant
    @mattnz
    Join Date: 2007
    Post Count: 574

    I have built in Melbourne before. You can do turnkey project homes for $1000/sqm, but 2 storey off the plan is $1500+ for everything.

    Profile photo of AALLIIAALLII
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    @aallii
    Join Date: 2012
    Post Count: 37

    What do you mean by everything? Do you include cost of the land aswell?

    mattnz
    Participant
    @mattnz
    Join Date: 2007
    Post Count: 574

    No, but it will include carpets, tiles, landscaping, fencing, aircon, oven, dishwasher, antenna, driveway etc.

    Excludes land, council fees, architect.

    Profile photo of Kris NapalmKris Napalm
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    @kris-napalm
    Join Date: 2012
    Post Count: 9

    nice discussion,
    thanks all for the ideas

    Profile photo of luke86luke86
    Participant
    @luke86
    Join Date: 2010
    Post Count: 470

    If you have never built before, then a project manager will be a good idea. It may sound expensive but surely it would be much cheaper than trying to manage a $1m+ contract without knowing what you are doing and making horrible mistakes.

    Also as mattnz suggested, $1500/m2 sounds like a pretty accurate estimate for two story townhouses that have been designed to suit a particular block.

    Cheers,
    Luke

    Profile photo of luke86luke86
    Participant
    @luke86
    Join Date: 2010
    Post Count: 470

    And also for the sake of discussion AALI- have you checked with a planner that yoyu can fit 5 units onto a 1000m2 block? Allowing for 25% circulation (which is hard to predict without studying the site) then you would be left with 150m2 per unit. Fitting a 21.5 square townhouse (200m2) might be pretty tight, and would need quite a high density zoning.

    Cheers,
    Luke

    Profile photo of JPCCMJPCCM
    Member
    @jpccm
    Join Date: 2010
    Post Count: 42
    Shape wrote:
    Not that im aware of. But they need to be licensed builders themselves ( not a carpenter) – so check they are licensed with no complaints held against them …for NSW http://www.fairtrading.nsw.gov.au/About_us/Online_services/Home_building_licence_check.html + preferred if they are part of HIA ( housing industry Association). Most are either retired builders or builders who no longer want/can't to do the "physical" work…

    HIA or MBA are just groups any trade, even supplier or builder can join, and its like a start-up kit and unionised sort of membership..

    I'm a HIA and MBA member, payed the fee for the year and done. Most builders once they become big they cancel these memberships because there quality of work are now reputable.

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