2MTR How To Handle Variations

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Whilst there is no formula to completely eradicate variations (especially when it comes to alteration and additions projects), there are ways to handle variations to ensure that you are not being overcharged and ripped off. Regardless of the size and type of the project, having a consistent dialogue with your Builder ensures that there are no hidden surprises on the project.

Experienced Builders that work on Alteration-Addition projects know that variations cannot be controlled. Unfortunately, the reality is that the scope of works is prone to changes as new discoveries are made on-site during the construction process. Given the number of uncertainties that often come into play with existing buildings (especially heritage buildings which were built over 100 years ago), many scopes of work items can only be determined once the construction commences.

A professional Builder should be able to provide a detailed cost breakdown on all variation items. In saying that, be mindful that it takes time for a Builder to prepare a detailed cost breakdown. Providing that extra bit of patience can help you avoid being overcharged on variations.

Here is the link for the Markup and Margin write-up: https://www.magicoconstructions.com/m…

2MTR Why Some Builders Hate Working With Architects on Projects

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No communication Dead air…

These are just some of the main reasons why some Builders refuse to work with Architects on certain projects. Did you know that a typical tendering process for a Builder can take up to 4-6 weeks? In order for a Builder to prepare an accurate quote, they must first go through all drawings and documentation (which could be over 100 pages long), whilst also delegate resources to speak with subcontractors and suppliers.

Whilst it is common practice for a tender to involve typically 3-5 Builders, from a Builder’s perspective this can be a deterrent, and nothing is guaranteed in terms of being compensated for your time and effort. There is nothing worse than spending 4-6 weeks of time and effort only to be greeted with radio silence once you have submitted the price. We have been in that position before whereby we follow up things with phone calls and emails, all of which falls on a deaf ear.

The unprofessionalism we faced was gut-wrenching as we spent countless hours preparing our proposal only to be told that the Owner decided to go with a ‘cheaper option’. (Which in most cases included half the scope of works) It is understandable that there can only be one successful Builder, but to simply ignore the rest seems rather unprofessional in my opinion. The least one can do is provide feedback, constructive criticism, and reasoning as to how the final decision was derived. I would suggest having criteria on which tenders are to be assessed.

That way the criteria can be used to judge the proposals received. (And please, don’t just make a decision based on price alone) What are your thoughts? Have you also had the bad experience of quoting on a project only to be met with radio silence and no responses?

Would love to hear your stories.

Abolishing The ABCC Agency

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There has been some major rumblings lately regarding the planned removal of the The Australian Building and Construction Commission (ABCC). Currently the ABCC plays a major role as the national construction watchdog when it comes to enforcing workplace relations to comply.

Most notably, it has played a critical role in holding the The Construction, Forestry, Mining and Energy Union (CFMEU) accountable. Will the removal of the existing ABCC serve to help the construction industry by increasing productivity? Or will the removal lead to increased power and influence for the CFMEU? Below are links to additional information regarding this topic as this further develops.

MBA E-Circular ‘The ABCC 2016 Code To Be Gutted By Albanese Government’ https://www.mbansw.asn.au/system/file… ‘The ABCC was a disaster for productivity’ Article published by The Mandarin.

Government sparks fresh battle after scrapping building watchdog’s ‘ridiculous’ powers https://www.smh.com.au/politics/feder…

Reforming the HBCF

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There is currently a new reform proposed for the HBCF, previously known as the Homeowners Warranty.

A discussion has been held in terms of reforming and changing the HBCF, which all of us in the industry know that it is compulsory. For any kind of construction project that is over the amount of $20,000.00, it is compulsory to obtain the Home Building Compensation Fund (HBCF). This is not fair in terms of the homeowners, for whom the maximum amount that you can actually claim is only $360,000.00.

What if the builder who is managing your project goes broke, disappears out of nowhere, or worse, passes away? Give your professional experience; discuss what you believe the HBCF should be and what changes must be made to achieve this. This is still an ongoing debate about proposing some changes and capping off the maximum claim.

If you are anyone that’s working in that space of construction, it’s highly recommended that you click on the link below and have your say in terms of what the reform should be targeting. HBCF Reform – Have Your Say https://www.sira.nsw.gov.au/consultat…

2MTR – Door Hinges Part 1

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Details. Details. Detail. Details. Did you notice the missing letter there?

Let’s talk about one of the small details people overlook on construction projects. Door hinges.

2MTR – Door Hinges Part 2

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Continuing on from our last 2-Minute Tuesday Rant (2MTR) on door hinges, this video goes into further details regarding the implications and intricacies of works involved with a door hinge.

In this video, I share one of the little detail that give away whether ‘care’ has been taken on the building project. Whilst it is not something ‘major’ that could cause a major defect for the project, it does affect the final quality of finish on the door.

As with most construction works, the simple installation of a door hinge can have consequences on other trades involved For example, if the door was left installed when the painter comes in to complete their painting works, it is inevitable that there will be paint marks over the door hinge itself. Whilst this may not seem like a big deal, the reality of a painted door hinge is that usually the paint selected is not one that will bond with the metal hinge. This results in the eventual dried paint from chipping over time and flaking off the hinge.

In the long term, it may also lead to rusting in the door hinge itself. As mentioned before, the small details in the project matter and should always be considered as it will impact the final result of the project.

If you missed the Part 1 of this topic, click the link below:

Tip 3 Budget

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It is a word that is often taboo to speak of when meeting with Clients and Architects. But it’s the elephant in the room that needs to be addressed. That word is BUDGET.

Some people like to dance around this word and avoid mentioning it until literally the last moment when they submit their quote. When that occurs, more often than not, the figure is met with a knee-jerk reaction. Usually it’s a response of ‘Oh wow! That’s outside of my budget’. So why not just address this upfront? Why not just have an honest and open discussion regarding the budget and the numbers upfront? I’ve witnessed so many shocking construction projects and been told so many horror stories, all of which usually stem from having an unrealistic budget to begin with.

If you’re an Architect reading this, I encourage you to have this open discussion with the Client. Early #Builder involvement helps not only to provide the Client with cost estimates, but more importantly in identifying construction solution/s which are project-specific. At the very least, we encourage you to a Quantity Surveyor in order to obtain a BOQ which most banks will require in order for the Client to obtain funding.

Tip 6 Doing your Own Due Diligence

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Do your own due diligence and conduct your own research.

Thankfully, we now live in the information age and with most information readily available to us via the internet. You can un-earth a company’s background and history quite easily by conducting your own research in the company’s staff. Additionally, it takes literally seconds to check the validity of a Builder’s builder license and whether the HBCF insurance policy is valid and legitimate.

I still recall the time I heard the story about a project being put on limbo when the project was close to completion because the PCA had gone through their checklist and realized that the HBCF policy provided by the Builder was photoshopped. It baffled me that no one had bothered to double-check on the paperwork until the very end of the project, by which all construction work had already been completed.

Makes you wonder how many illegal jobsites there are out there up and running in the residential home sector. So I urge you to do some background research and cross-checking of your own upfront for your project.

Don’t risk being caught out.

2MTR – Gantt Chart

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Importance of proper planning. It could be as simple as starting with a Gantt chart or a simple timeline. It’s one of those things that people tend to overlook when they are in a rush to get things done. The other day I had a conversation with a friend that is an architect regarding a project they were working on. What was meant to be a 12-week documentation process for this development project got cut short down to just 6 weeks.

The reason for the reduced timeframe was because the builder wanted the drawings done sooner so that they could send it out for subcontractors to provide pricing on the project. Putting aside the impossible task of rushing out all the documentation in time given the short notice, what worries me is the accuracy of the pricing the builder will receive from their subcontractors given that the drawings will most likely need to be further refined and changed for construction.

This opens the doors for variations to be claimed by the subcontractors, then by the builder, which will impact the client’s over budget for the project. Had the builder mapped out when they needed the quotes in from their trades, they could have reverse-engineered the timeline to provide the architect with more time. Instead, this will now result in the architect needed to reallocate resources (no doubt also pulling a lot of all-nighters) and result in the tender documentation being partially finalised since it would be possible for the service consultants to provide feedback.

So ask yourself, would you rather put your project at risk of having variations? Or would you rather be a bit patient and do the correct timing in advance so that you can identify these critical tasks upfront to allow for sufficient time for tasks to be completed correctly?

Plan it out properly, do it right and do it once.

2MTR – Electrical Safety on Site

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Construction workers in New South Wales are being urged to take extra precautions when it comes to electrical safety. SafeWork New South Wales has launched a crackdown on construction sites, and electrical safety inspectors will be conducting inspections from now until June 2023. This move comes in response to the high number of electrical safety incidents reported in 2020, which resulted in 584 injuries and 3 fatalities.

To avoid fines and ensure the safety of workers on construction sites, it is recommended that construction companies and workers follow certain guidelines. SafeWork NSW provides a range of free electrical safety guides that can be downloaded and implemented on job sites. Some basic tips include disconnecting unused electrical equipment, getting rid of any damaged or faulty wiring or cabling, and using electrical tag registers to keep track of equipment inspections and tests. Additionally, the use of residual current devices (RCDs) and safety switches can help prevent accidents and save lives.

At Magico Constructions, we take health and safety very seriously and welcome this new emphasis on electrical safety on construction sites. We believe that it is our responsibility to ensure that all workers on site make it home safely at the end of every workday. We urge all construction workers to be aware of the new regulations and take steps to comply with them. By following these guidelines and tips, we can ensure that all workers on construction sites are protected and that accidents are prevented.

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