The fact is, 75% of builders work on net margins of less than 3%, therefore you won’t be able to negotiate a massive discount on your next home regardless of how good you are at poker. When you choose the builder with the lowest price, you still pay the
The fact is, 75% of builders work on net margins of less than 3%, therefore you won’t be able to negotiate a massive discount on your next home regardless of how good you are at poker.
When you choose the builder with the lowest price, you still pay the real price in the end…albeit with delays and disputes on top of all those contract variations generated by unrealistic allowances in your building contract.
The solution is to enter into a Preliminary Service Agreement with a professional building company that will provide a high-quality, accurate estimate.
Watch the full video: https://hubs.la/Q02yz55Z0
The other problem for those builders that choose to estimate for free rather than being paid to provide a professional quote, is that they are forced to fill their estimate with allowances. This practice protects them from any financial exposure when the
The other problem for those builders that choose to estimate for free rather than being paid to provide a professional quote, is that they are forced to fill their estimate with allowances.
This practice protects them from any financial exposure when they underprice an item as well as making their ‘estimates’ look extremely cheap.
A common myth amongst consumers is the belief that an estimate that is $200,000 below a professional builder's fixed price quote is unlikely to increase to the point that it becomes more expensive.
Unfortunately, that is a very common and costly mistake made by consumers on a tight budget.
Watch the full video: https://hubs.la/Q02yz2Lz0
A quote is typically provided after the builder has done a detailed assessment of the project and has a clear understanding of the client's needs and requirements. And there lies the problem. Because a detailed assessment takes a builder approximately 40
A quote is typically provided after the builder has done a detailed assessment of the project and has a clear understanding of the client's needs and requirements.
And there lies the problem. Because a detailed assessment takes a builder approximately 40-80 hours depending on the complexity of the project.
Obviously, staff have to be paid and other resources engaged in order for the builder to establish a contract that can be fixed for the client so the actual cost involved in quoting a project is around $5,000.
With a win ratio of one in ten for the building companies that quote plans for free, that means they have to add $50,000 to each job they win just to cover the cost of the ones they don’t!
Watch the full video: https://hubs.la/Q02yy_NC0
Why should you have to pay a builder to give you an estimate? Surely that’s the cost of doing business and builders should provide an estimate to their prospects free of charge so the consumer can decide if the project is within their budget… That’s
Why should you have to pay a builder to give you an estimate?
Surely that’s the cost of doing business and builders should provide an estimate to their prospects free of charge so the consumer can decide if the project is within their budget…
That’s how other industries operate so why do some builders charge while others offer free estimates?
The problem lies in the language and the fact that the terms "builders estimate" and "builders quote" are often used interchangeably.
However, there is a subtle difference between the two, and it's one that could cost you hundreds of thousands of dollars…
Watch the full video: https://hubs.la/Q02yyNly0
However, even when working with an experienced builder from a design and construct company you will still need to follow these three steps in order to achieve a successful outcome. First, you must be open, honest and realistic about your budget. If you t
However, even when working with an experienced builder from a design and construct company you will still need to follow these three steps in order to achieve a successful outcome.
First, you must be open, honest and realistic about your budget.
If you think you can influence the contract price by anchoring a lower budget than you are comfortable paying, then you are simply wasting everyone’s time because you won't be satisfied with the outcome.
Also, be aware that scope creep will increase your budget so be wary of a company that does not advise you of the required increase in budget every time you reveal an addition to your wish list.
Everything will be included in the final price so you are better off knowing how the budget is changing as the design evolves.
Watch the full video: https://hubs.la/Q02vt5Q-0
Why should you pay for an estimate?
Why should you have to pay a builder to give you an estimate?
Surely, that’s the cost of doing business, and builders should provide an estimate to their prospects free of charge so the consumer can decide if the project is within their budget…
That’s how other industries operate so why do some builders charge while others offer free estimates?
The problem lies in the language and the fact that the terms "builders estimate" and "builders quote" are often used interchangeably.
However, there is a subtle difference between the two, and it's one that could cost you hundreds of thousands of dollars…
Click on the link below to download 7 Things You Must Know BEFORE Designing A New Home: https://go.stannardfamilyhomes.com.au/7things
Ultimately, the decision between an architect and a building designer will depend on your specific needs and preferences. However, unless you have unlimited resources there is something very important that you should be aware of that will affect your de
Ultimately, the decision between an architect and a building designer will depend on your specific needs and preferences.
However, unless you have unlimited resources there is something very important that you should be aware of that will affect your decision for either of these choices…
A quick search of the internet will reveal that around 70% of architecturally designed homes never get built.
That is a lot of money being wasted on designs that never see the light of day.
So who is to blame?
While some projects are affected by a change in circumstances for the client such as redundancy, relocation or divorce, the vast majority of these designs never come to life due to the cost of construction exceeding budget…
Watch the full video: https://hubs.la/Q02vt8L00
Choosing between an architect or a building designer depends on the complexity of the project, your budget, and your personal preferences. So here are some factors I would recommend you consider: Architects are typically trained to handle complex project
Choosing between an architect or a building designer depends on the complexity of the project, your budget, and your personal preferences.
So here are some factors I would recommend you consider:
Architects are typically trained to handle complex projects such as large commercial buildings or high-end residential homes with unique features.
If you have a complex project that requires intricate design and engineering, an architect may be the better choice.
Building designers on the other hand, are typically best suited for simpler projects such as renovations or smaller residential homes.
It’s also important to be aware that architects generally charge higher fees than building designers due to their advanced training and experience.
Watch the full video: https://hubs.la/Q02vsYWK0
So rather than ending up in a legal dispute with a builder because you don’t agree with, or are unable to pay the contract variations they are now submitting to you. It’s best to avoid those situations ever arising by only signing fixed price contract
So rather than ending up in a legal dispute with a builder because you don’t agree with, or are unable to pay the contract variations they are now submitting to you.
It’s best to avoid those situations ever arising by only signing fixed price contract agreements with almost no allowances.
To achieve this, you will need to engage a building company that provides a full turnkey solution and can take care of absolutely everything for you.
They then have the systems in place to quote you a fixed price on all of those components and include them in one simple contract that is easy to understand and execute.
Watch the full video to learn more: https://hubs.la/Q02rMkX40
Which is best, an Architect or a Building Designer?
You’ve finally settled on your land, and you are now ready to build your own home…
It’s an exciting time!
But who should you engage next, an architect or a building designer…or neither?
Choosing between an architect or a building designer depends on the complexity of the project, your budget, and your personal preferences.
So here are some factors I would recommend you consider:
Architects are typically trained to handle complex projects such as large commercial buildings or high-end residential homes with unique features.
If you have a complex project that requires intricate design and engineering, an architect may be the better choice.
Building designers, on the other hand, are typically best suited for simpler projects such as renovations or smaller residential homes.
It’s also important to be aware that architects generally charge higher fees than building designers due to their advanced training and experience.
So that may also be a factor in your decision-making process if you have a smaller budget.
Ultimately, the decision between an architect and a building designer will depend on your specific needs and preferences.
Click on the link below to download 7 Things You Must Know BEFORE Designing A New Home: https://go.stannardfamilyhomes.com.au/7things
Contract Variations arise when other, non volatile components are inserted into building contracts as prime cost items which apply to materials, or provisional sums which cover labour or a combination of labour and materials. And this is where consumers
Contract Variations arise when other, non volatile components are inserted into building contracts as prime cost items which apply to materials, or provisional sums which cover labour or a combination of labour and materials.
And this is where consumers get caught out with the average building company.
This is because the average building company does not produce a fixed price quote before going to contract, they work off of estimates filled with allowances which in most cases are unrealistic.
The problem is, as consumers, once you have signed a legally binding building contract you are obligated to pay these amounts whether they are in your budget or not.
Learn more in the full video: https://hubs.la/Q02rMgCx0
The only time allowances should be included in a fixed price quote is when items are impossible to price accurately and would disadvantage the client by attempting to do so. An example of this is structural steel and timber. The volatility in price on th
The only time allowances should be included in a fixed price quote is when items are impossible to price accurately and would disadvantage the client by attempting to do so.
An example of this is structural steel and timber.
The volatility in price on those components over the past few years would require a building company to quote an amount containing a significant contingency that covered potential price rises.
While some consumers may prefer to limit their exposure by agreeing to a higher contract price, it’s generally far better for the client to contract with an allowance in place for those items which they will only ever pay the real cost for.
Learn more in the full video: https://hubs.la/Q02rMl4n0
How to avoid paying for variations on your next build? The number one fear for clients looking to build is typically related to the cost of the project. Clients often worry that the final cost of the project will exceed their budget or that unexpected ex
How to avoid paying for variations on your next build?
The number one fear for clients looking to build is typically related to the cost of the project.
Clients often worry that the final cost of the project will exceed their budget or that unexpected expenses will arise during the construction process.
This fear is understandable, as construction projects can be complex and there are often unforeseen circumstances that can impact the budget.
However, these risks can be reduced, or even eliminated simply by working with a reputable building company that provides a detailed and accurate quote covering the project's plans, specifications and inclusions rather than a free estimate containing allowances.
Watch the full video: https://hubs.la/Q02rMmpn0
How to avoid paying for variations on your next build
The number one fear for clients looking to build is typically related to the cost of the project.
Clients often worry that the final cost of the project will exceed their budget or that unexpected expenses will arise during the construction process.
This fear is understandable, as construction projects can be complex and there are often unforeseen circumstances that can impact the budget.
However, these risks can be reduced, or even eliminated simply by working with a reputable building company that provides a detailed and accurate quote covering the project's plans, specifications and inclusions rather than a free estimate containing allowances.
The only time allowances should be included in a fixed price quote is when items are impossible to price accurately and would disadvantage the client by attempting to do so.
An example of this is structural steel and timber.
The volatility in price on those components over the past few years would require a building company to quote an amount containing a significant contingency that covered potential price rises.
While some consumers may prefer to limit their exposure by agreeing to a higher contract price, it’s generally far better for the client to contract with an allowance in place for those items which they will only ever pay the real cost for...
Click on the link below to download 7 Things You Must Know BEFORE Designing A New Home: https://go.stannardfamilyhomes.com.au/7things
The other thing I should mention is that when a professional building company accepts a deposit for a building contract, they are legally required to have insurance in place which will cover you should the company go into liquidation. So always make sure
The other thing I should mention is that when a professional building company accepts a deposit for a building contract, they are legally required to have insurance in place which will cover you should the company go into liquidation.
So always make sure you sight that insurance certificate within an agreed timeframe, otherwise you are effectively uninsured!
Rather than blindly listen to a salesperson or trust a building company based on its size and the number of years it has been operating for, here are some practical tips that will help you assess what may be going on behind closed doors right now.
The most important thing you can do is check out online reviews.
If the company has a large number of client builds that have been unreasonably delayed, then those issues will normally come to light in customer reviews.
Watch the full video to learn more: https://hubs.ly/Q02p0Xyc0
During the construction boom triggered by COVID, the volume builders with their large sales teams all signed up 3, 4 and in some cases 5 times the number of contracts they would normally sign in a 12 month period. The problem with taking on all that work
During the construction boom triggered by COVID, the volume builders with their large sales teams all signed up 3, 4 and in some cases 5 times the number of contracts they would normally sign in a 12 month period.
The problem with taking on all that work was that they did not have the resources to deliver 3, 4 or 5 times the number of homes they would normally build in a 12 month period.
This meant the contracts had to be queued sequentially over a three year period.
Normally, that would be a good thing for the builder, and a frustrating experience for the consumer.
However, because those were all fixed price contracts with no cost escalation clauses, it meant that as soon as construction costs increased by 10%, they started losing money.
Which is why so many of these large building companies collapsed with massive debts taking consumers deposits with them.
Learn more in the full video: https://hubs.ly/Q02p12HW0
I can’t tell you how many times I have been told by consumers that the salesperson has promised the earth and assured them that ‘everything will be fine.’ It’s like putting the fox in charge of the chickens, Trust but Verify! It’s so important y
I can’t tell you how many times I have been told by consumers that the salesperson has promised the earth and assured them that ‘everything will be fine.’
It’s like putting the fox in charge of the chickens, Trust but Verify! It’s so important you do this in order to protect yourselves.
However, before I get into some practical tips that will enable you to do just that, I need to address a common myth that has existed in our industry for quite some time now.
That is that large building companies, the volume builders with display homes and large sales teams, are more financially stable than smaller builders.
So let me explain why it's the exact opposite…
Watch the full video to learn more: https://hubs.ly/Q02p12Fg0
Despite the challenges, and the lack of financial information in the public domain it is possible to identify companies like Porter Davis well in advance of their eventual demise. However, it does require a bit of independent research and an adherence to
Despite the challenges, and the lack of financial information in the public domain it is possible to identify companies like Porter Davis well in advance of their eventual demise.
However, it does require a bit of independent research and an adherence to a core value we have at Stannard Family Homes which is to ‘trust but verify.’
The professional salesperson you are engaging with has a dilemma.
Their income depends on them not accepting the gravity of the situation their building company finds itself in.
It’s not that they are deliberately trying to deceive you, it's simply a case of if you knew what they knew, you would never hand over a deposit which means their income would quickly dry up.
Which is why they convince themselves that everything will be OK and their clients will be fine.
Learn more in the full video: https://hubs.ly/Q02p1bJR0
Do bigger builders offer better value?
Given what has been happening in the construction industry over the past few years, choosing the right builder has never been more important.
But how as a consumer, are you able to differentiate between the good, the bad and the insolvent when a silver-tongued salesperson is telling you all the right things?
Despite the challenges, and the lack of financial information in the public domain it is possible to identify companies like Porter Davis well in advance of their eventual demise.
However, it does require a bit of independent research and an adherence to a core value we have at Stannard Family Homes which is to ‘trust but verify.’
Their income depends on them not accepting the gravity of the situation their building company finds itself in.
It’s not that they are deliberately trying to deceive you, it's simply a case of if you knew what they knew, you would never hand over a deposit which means their income would quickly dry up.
Which is why they convince themselves that everything will be OK and their clients will be fine.
I can’t tell you how many times I have been told by consumers that the salesperson has promised the earth and assured them that ‘everything will be fine.’
It’s like putting the fox in charge of the chickens, Trust but Verify! It’s so important you do this in order to protect yourselves.
Click on the link below to download 7 Things You Must Know BEFORE Designing A New Home: https://go.stannardfamilyhomes.com.au/7things
Another thing to consider is that the best builders are like the best restaurants, they are booked out in advance. Some builders may be booked out for 12 to 18 months in advance. So if you are thinking of delaying the start of your build for a few months
Another thing to consider is that the best builders are like the best restaurants, they are booked out in advance.
Some builders may be booked out for 12 to 18 months in advance. So if you are thinking of delaying the start of your build for a few months while you assess where interest rates are going, you could lose your build slot which will result in you having to join the back of a queue. And with an average wait time of around 14 months for the best builders, that could mean you are still two years away from living in your dream home.
And don’t forget, when you reach the front of the queue and construction is about to start, your contract will still have to be repriced in order to take into account any price increases.
Click on the link below to watch the full video: https://hubs.la/Q02lrgg30
