The first point that would be worth noting is that you should be looking for ‘transparency’ and ‘commitment’ and yes, this is a checklist for finding a terrific builder to partner with. We know you are looking for the ‘builder stuff’ in the checklist, it is here too. BUT from the first moment there should be open discussion about aspects which would be best for the customer and hardest on the builder. This establishes immediately that the potential customer is in a protected position. Honesty, promptly handling your every question, follow through and good answers to your questions before you sign are all important. You are choosing a company that you will be incredibly involved with for 8, 9 months.
Vital questions you should check include:
Is the builder only offering a house and land package and if so why?
House and land packages can be advantageous for the customer provided that the builder does not have reasons to be recommending that block including ‘they own the block and need to get that block sold’.
1. Fixed Price Contracts
If the builder will ‘lock in’ the price for you then this provides amazing safety and comfort:
- You know your exact costs and they cannot change (most builders will charge you for sloping land, hitting rock and many other variables they could incur: watch out for *)
- This forces the builder to have very good processes and a very tight estimation, which also typically means the trades are very well organised and build to definite time frames and higher quality standards because they do things well the first time.
2. Turn Key Inclusions
Try to get the builder to take responsibility for the build project all they way through and include paths, landscaping, lawns, numbered letter box, blinds, etc. All for the guaranteed fixed price. This not only saves you the hassle of having to do and pay for those projects, it makes sure it’s done by the time you move in. There’s nothing worse than a magnificent new house with beautifully clean everything and dirt all around that new house outside. We all know where the outside dirt will go!
3. Specified build times
When a builder guarantees the build time for you, your costs are protected and your move in date/tenants move in date is predictable. Guaranteed build times save you money.
4. Energy Efficiency
A new build is a perfect opportunity to have a very energy efficient house all for the fixed price. Insulating both the underside of the roof as well as the topside of the ceiling further makes your house more efficient and saves on the energy costs of regulating inside temperatures.
5. What you don’t see can matter most
Make sure that your builder is using the latest technologies to build and this should include steel frame and trusses because it allows cleaner lines on walls and the integrity of those lines will be maintained over time.
6. Builders who evaluate the blocks available with you/for you
When a builder is going to sign a fixed price contract with you, they have to do comprehensive assessment of the block: they assess it very carefully, because they cannot later charge you for something they missed. This forces them to apply very specific criteria and check very carefully.
This is really good for you because there will be things that you don’t know to look for: before you sign the land contract get your chosen builder to apply their criteria to that block and do a site visit and ask them to fix the price for the build on that site before you sign the contract. Don’t be
surprised by builders balking at these requests! Watch out for the salesman saying ‘of course’ but the company not writing to you confirming it, putting it in their brochures, including it in the contract.
7. 8 year structural guarantee
All builders are required to give you at least 7 years and you have the backing of the HIA who guarantee that. Look for a builder who goes beyond the minimum for you because it forces them to be even more careful with what you don’t initially see: they will also need to use better materials e.g. steel frames.
8. 120 day defect warranty
Typically you will notice small defects after you move in, or your tenant will. Having an extra month in the defect rectification period again shows you that the builder is proud of their quality and is prepared to stand by their quality for you. Your satisfaction is important to them.
It is always best if the builder has criteria that they use to assess available developments and then a criteria to evaluate which blocks are best within the development: they should consider and provide feedback to you on your block selection before you sign the land contract; get them to consider factors like gradient, bush fire rating, known characteristics which may not be advantageous to certain blocks. Builders know the challenges that you may face and thus they are a great source of truth around which blocks are best.
Ideally find a builder who can build on any block you buy and is able to help you choose good blocks, lets you buy the land direct and offers you definite opinions on criteria to look out for: Even better if they are prepared to assess the block you are considering and then stand by their evaluation with a fixed price contract.
What is the builder prepared to include and guarantee into a standard contract?
How have independent bank valuations been tracking for other customers slightly ahead of you in the process?
Does the builder have relationships that you can leverage and do they have an overall approach which has a track record of getting all the way through a turnkey build through to a tenanted property and how few weeks after the completion certificate?
Disclaimer:The advice provided on this website is general advice only. Please seek advice from qualified professionals.
