I am looking at building two side by side 2-story townhouses at the rear of my property. I have already got a quote from a builder which covers more or less everything from beginning to end. However, I can delete out various tasks and arrange to have them done myself.
I don’t have the skills or the time to do them myself, so would have to arrange various trades to handle the tasks.
Can anyone suggest which tasks are better left with the builder and which are better arranging to be done separately? I know the builder usually subcontracts lots of the work out and just adds their own markup on top. But presumably they also get a discount that may not be available to me as a one off customer. Additionally, as we get towards the completion stage, I will be paying interest on a debt of $700+K, so any delay due to me not being able to get tradesmen could be costly (I’m in Perth so that could be a potential issue). In many cases I would have to wait until after handover, before I can bring others in.
These are the tasks that I think could be separated out, but I am not sure if worth doing:
Site Works
Flooring
Painting
External Paving
Fencing
Retaining Walls
Some electrical
Air Con
Landscaping
Reticulation (not much)
Kitchen ?
Garage DoorsIf the builder offers the services, then I would take them up on it. Most of the time they don’t offer things like painting, landscaping, fencing etc so you have to sort those things yourself anyway. Like you eluded to – time is money, get things done in the least amount of time, instead of trying to pinch a few pennies.
Do you value your sanity?
If the answer is yes then get the builder to do as much as possible. Don’t just settle with one builder because he came and gave you a quote…get a few quotes from a few builders and see what is negotiable on price. You never know…the builder may be happy to offload some things onto you.
I think the amount of money you save by outsourcing away from the builder you will end up paying in lost time and interest repayments…not to mention you will pay for it with stress. Not everyone is cut out for that stress…
Ryan McLean
http://CashFlowInvestor.com.au
Positive Cash Flow Properties Are Just A Click AwayRyan McLean | On Property
http://onproperty.com.au
Email MeThanks RH and Ryan
Don’t just settle with one builder because he came and gave you a quote…get a few quotes from a few builders and see what is negotiable on price.
Ryan. I got two builders to quote as I wanted some basis for comparison and started the process about 5 months ago. Each required an upfront deposit of about $2K. One of the builders spent a lot of time working with me on the design to ensure I was completely happy and eventually came up with a design and detailed quote. The other builder literally did nothing for about 10 weeks, then e-mailed me a drawing that was on a 1:400 scale and had no room dimensions with an accompanying note to ask did I want to go ahead to final costing based on that drawing. Of course I didn’t. It took another month for them to come up with a new design, that was again unsatisfactory, missing key elements that I require. I am awaiting their third attempt to get it right. I have no faith whatsoever in that second builder, but I am reluctant to pay additional fees to a third builder to come up with a new design which might set everything back another 3 months.
I would let the builder do all the prep work and the main house you may elect to do the outside work. This way if there is any issues with the house there should not be any issue of who is responsible to rectify. just ensure if you do do this you need a total clear understanding who is doing what.
This also may eliminate delay issues by any of your trades you hire which cause delays to the builder as this can have an effect on the contract. Of course do your figures to see if there is any real cost savings.
Have fun
BrianIf you are having troubles at the formative stages, then imagine what it will be like when the project gets going… go with the group that looks after you best, it is worth paying the extra as it will save you in the end.
Thanks all, you’ve been great. Just one more question while I’m on a roll.
The builder who has worked closely with me and who I want to deal with has had a change of salesman since I first started working with them. Both have been great. However, the original salesman said that I would pay so much for initial plans and engineers reports etc., and after agreement on the design, they would produce, for an additional fee, drawings to submit to council plus they would undertake all the interaction with council during the approval application phase. These fees would be refunded when I sign the contract.
The new salesman is not asking for this second fee for council drawings and the approval process, but wants me to commit to them as the builder and pay a 1% deposit instead.
Is that normal?
I am reluctant to committing to anything without council approval, as they would have me over a barrel should council demand changes for any reason. They could then insist on fees for revisions of drawings at exorbitant rates etc.
you may save money if your smart about it and do a lot of the work you mentioned in your post, I would do alot of the things you mentioned above if you know how to source these people and also good deals then get the builder to do his part and as for the rest get your own contractors in, but you do have to get the correct people so there not getting in the way of the builder etc.
but yes the builder will wak on a good margin for himself.you will need to be around quite alot to manage things and show contractors what to do.
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