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Major things go wrong in building contract occur because of the wrong choices

Major things go wrong in building contract occur because of the wrong choices of appointing your new home builder.

If you are owner and planning to hire a building contractor or subcontracting parts of the project, make sure you have enough knowledge about home building. Ask the right questions, have a checklist ready and choose wisely.

You cannot be too careful when choosing a building contractor or subcontractor, go the extra mile and make sure that you feel confident that you have chosen wisely before you start building your dream home.

Finding a builder:

– Check in local publications, newspapers and My Little Black Book for builders who advertise their services. They are more likely to be reputable and contactable.

– Look around your neighbourhood for builders currently working on house building projects and chat to the homeowners and get their opinion on them.

– Get referrals from your architect.

– Get referrals from friends and associates.

– Shortlist at least three builders from whom you can obtain quotes.

Check your builder’s credentials:

– Obtain and check the potential builder’s references. Obtain the addresses and contact numbers of at least three previous projects that he has worked on. Do not appoint any builder who is unable to supply you with contactable references.

– Ask for information on the project that he is currently busy with. Visit the site and speak to the owner. If the builder is in financial difficulty on that project, then chances are that he needs your project to finance the completion of that one.

– Find out if your builder is registered with either the Master Builder’s Association or NHBRC or any other association.

– Make sure that you have your builder’s business and residential addresses and full contact details.

– Check that your builder has a valid insurance policy in place to adequately cover the project and personal liability.

– Find out who your builder gets his main building material supplies from and check his creditworthiness with that supplier.

– Check if a Health and Safety Plan is required for your project and whether your builder is able to produce and comply with one.

– Check the registration details of the electrical sub-contractor and the plumbing sub-contractor that your builder will be using with their respective associations. This is very important. Electricians who are not registered with the Electrical Contracting Board of S.A. are not permitted to sign an Electrical Compliance Certificate.

Pricing your contract:

– It is wise to present your short-listed builders with a drawing, a specification and a pricing schedule. This will ensure that the quotes can easily be compared. Your architect can assist you in this regard.

– Be aware of items that have been deliberately excluded by the builder from his quote. You will have to install and pay for those items yourself. Check if that item is excluded from the other quotes as well so that a proper comparison can be made.

– Obtain rates from your builder in his quote for items that you may wish to extend during the contract.

– Avoid lump sum quotes. Having a breakdown of the various items gives you better control and a better basis for comparison.

– Be aware of provisional cost items with regard to the quality of those items. The specification should cover most of this. If the specification does not cover items like taps, for instance, make sure that your builder has priced a reasonable quality product in his quote.

Appointing your house builder

– Apart from the quote that your builder will give you, which you will be expected to sign, make sure that you have a valid building contract signed by your builder and yourself in place.

– Make sure that you have a payment schedule worked out before you sign any contracts.

– You will be investing a lot of money in your building project. Protect yourself and follow the advice given in this article and make your project a good experience instead of a nightmare. 

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