Tag Archive for: choosing a builder Sydney

Tip 7: Choose The Right Builder

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I could probably talk about how to select the ‘right Builder’ for a project for hours on end, but ultimately the most important factor is TRUST. Nothing is worse than choosing a Builder you didn’t trust from the very beginning.

There are so many telltale signs to look out for when it comes to authenticity and ethics. DON’T choose a Builder that easily lowers their quote. This is a sign that they probably haven’t done an accurate costing of the project and aren’t certain of their true profit margins.

Never make your final decision based on cost as variations along the way may dramatically change the actual cost for the project. Working closely with a trusted Builder ensures that there are no unsubstantiated variations that can easily cause a budget blowout.

More importantly, choose a Builder that stays true to their word and is able to do what they promised.

Our 4-Step Tender Process - Magico ConstructionsMagico Constructions

Our 4-Step Tender Process

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The 4-step Tender Process for builders varies between different companies. We have developed our own 4-step tendering process over the years.

Often, builders may seek to use the simplistic ‘square-metre rate’ approach as it provides the quickest solution. However, this often puts the project in jeopardy of having multiple variations and being delayed.

As most builder companies may not come from a university background in quantity surveying, architecture, project management or structural engineering, the square metre approach is arguably the easiest way to generate a quote for a project.

At Magico Constructions however, rather than just trade qualifications, our management team is fully qualified with engineer-level professional construction qualifications and use only the best practice project management techniques to ensure your project is built on time and within budget”

 

Step 1 – Discovery and Consultation (5 working days)

  • Reviewing all drawings and documentation
  • Preparing a Scope of Works for the project
  • Identifying the construction methodology
  • Organising a site visit
  • Scheduling a meeting with the client of the project

 

Step 2 – Estimating and Taking Off (5-10 working days)

  • Sending off project details to our external Quantity Surveying (QS) team for a Bill of Quantity (BOQ) take off
  • Liaising with our QS to identify other potential cost-effective building solutions (‘Value-Engineering Solution’)
  • Conducting our own internal take-off and BOQ
  • Conducting site visit and identifying site conditions and restrictions
  • Preparation of tender packages for subcontractors and suppliers
  • Sending of tender packages to subcontractors and suppliers

 

Step 3 – Request for Information (RFIs) (1-5 working days)

  • Raise any questions regarding discrepancies between drawings/documentation
  • Contacting architects and consultants regarding any RFIs to clear up any ambiguities for the project
  • Reviewing BOQ from our external QS
  • Comparison between the BOQ from QS and our own BOQ

 

Step 4 – Finalising of the Proposal (1-5 working days)

  • Review of quotes from subcontractors and suppliers
  • Preparation of final proposal
  • Submission of proposal
  • Meeting with client to go through our proposal

 

Our tendering process ensures that our Proposal will be cost-accurate for the project whilst providing the client with a realistic construction timeframe.

The value this brings to our clients is that many potential issues are identified upfront and resolved prior to the commencement of construction. And thus, our clients are able to avoid unexpected variations during the construction process which may lead to a budget blowout.

For us, it is not about being involved in large amounts of tendering, rather we prefer only tendering on projects which we believe we’d be a great fit for. As such we treat each of our tendered project with upmost importance.

This is also the reason why many professional builders have now begun charging for their quotes as they have realised the value in which their proposal can bring to the client. Additionally, this investment of money and time can sometimes leave a sour taste when all the client wanted was to simply ‘shop around‘ in search of the cheapest quote.

 

If you have an upcoming project which you would like us to help with, Book a free call with our team today and get expert guidance tailored to your needs.

Is There Any Room Left for Ethics in Construction? - Magico ConstructionsMagico Constructions

Is There Any Room Left for Ethics in Construction?

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Last week I received a call from a homeowner who stumbled across our newsletter that really got me thinking whether there is any room left for ethics in construction.

The lady had rang me to thank me for all the informative information she had been receiving from our newsletter and articles.

But from her tone I could tell something was troubling her. I asked her what was wrong and she informed me that she wish she had came across our company earlier on as she had already signed with a large project-home Builder under a Design & Construct (D&C) contract for her home.

Unfortunately, her experience thus far hasn’t been pleasant at all and she wish there was a good exit clause on her contract for her to terminate the agreement.

Unsurprisingly, her biggest frustration was the lack of transparency and honesty from the Builder. She mentioned that the whole design and development application (DA) process has taken nearly one year altogether and she was never informed about this from the beginning.

She begun to vent about her frustrations how the construction costs have sky-rocketed from the initial quote. More importantly she found that with each minor change, there was an exorbitant variation attached. As such the current construction cost no longer resembled the original quote she had budgeted for.

She felt that salesperson had tricked her as many of her requests were not included as part of the signed ‘package’. In her own words, she felt that ‘the base package was very bare bones’ and that she was being duped.

The only thing I could offer her was my condolences and some advice as to what to be careful of before she begins construction on her home project.

Sadly, as she had already entered into an agreement with this Builder, there was little I could do to help.

The only silver lining was that construction had not yet commenced, and she may have an opportunity to terminate the agreement with the Builder prior to construction (though that’d be dependent on the contract’s terms and conditions).

Every time I hear stories like this, I am filled with frustrations.

It makes me wonder if there is any room left for ethics in construction?

Time and time again, I find that consumers are being conned by these so called ‘Custom Home Builders’ who trick homeowners into signing contracts which contain exclusions and a misleading construction cost that could never have been met.

When we dig deeper and ask the question ‘why did you choose them?’, the answer is always (regrettably) the same.

Because they were cheap.

I suppose it begs the question then, how do you choose the right Builder? And if decisions are often being led by cost, when will this vicious cycle of deceit ever end?

Can ethical Builders even survive in this cut-throat market?

In recent times, we have found ourselves missing out on projects because the client chose to go with a ‘cheaper Builder’.

Every time when clients do go with a ‘cheaper’ or ‘cheapest’ Builder, we’ve found that the project will inevitable either be delayed, or the client ends up being hit with hidden variations.

Sure, that ‘cheaper’ Builder might have seem to cheaper when they quoted at the time. But the reality of things is that when the project is completed, the figure cost will never come close to that figure.

More importantly, when the project has finished construction it may not even look remotely the same as what was designed and will often be plagued with defects.

The best advice we often give to our clients is to look beyond just the numbers. Sure, it’s important to pick a Builder that has provided you with a quote that is within your budget. But you should never make your final decision just based on the numbers.

There are other key factors to take into account when selecting the right Builder.

If you’re looking to choose a Builder for your project, I’d highly recommend reading our article HERE which covers some of the key factors to consider before you make your final decision.

Book a free call with our team today and let us guide you through every step of the process.

How A Quality Builder Ensures Safety And Durability In Every Project - Magico Constructions

How A Quality Builder Ensures Safety And Durability In Every Project

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When undertaking any construction project, the choice of builder is pivotal. A quality builder not only influences the outcome aesthetically but also ensures the safety and longevity of the structure. Companies that prioritise these aspects set industry benchmarks that transcend basic building requirements.

“The safety of the people shall be the highest law.” – Marcus Tullius Cicero, an accomplished Poet, Philosopher, Rhetorician, and Humorist,

Adherence to Safety Standards

Safety is paramount in construction. A quality builder not only meets but often exceeds the safety standards required by law. This includes everything from adhering to occupational health and safety guidelines to implementing rigorous training programs for all staff. Safety measures should be proactive and integrated into daily routines, ensuring that each task – whether it involves high-altitude work or handling heavy machinery – is performed under the safest conditions possible.

Use of High-Quality Materials

The longevity of any building heavily depends on the quality of materials used. Quality builders understand this and are meticulous in their material selection, opting only for products that offer durability and are fit for purpose. This might mean choosing higher-grade steel that resists wear and tear or eco-friendly concrete that offers better insulation. Using premium materials not only enhances the building’s durability but also ensures that safety is not compromised over time.

Expertise and Skilled Workmanship

The expertise of the workforce is a critical component of a quality construction project. Skilled tradespeople, who understand the nuances of their craft, bring precision to the job site, which is crucial for both safety and durability. Ongoing professional development and training are staples among top-tier construction firms, ensuring that their teams are up-to-date with the latest construction techniques and safety protocols.

Comprehensive Project Management

Effective project management is vital in ensuring that all aspects of the construction process are executed correctly. Delivering a quality project, according to a blog by Construct Connect, requires careful planning, detailed progress monitoring and communication and collaboration among all the stakeholders and team members.

Quality builders use advanced project management tools to maintain a clear overview of the project timeline and budget. For instance, cloud-based software allows for real-time updates and seamless communication between all parties involved. This level of organisation minimises risks and ensures that each phase of construction is completed to the highest standards.

Attention to Detail

Attention to detail is what differentiates a good building project from a great one. Quality builders scrutinise every element of the construction process, from the initial design to the final touches. This meticulous approach prevents minor issues from becoming major problems, ensuring that every aspect of the building is executed perfectly, thereby enhancing both safety and durability.

Proactive Communication and Transparency

Clear and consistent communication among all project stakeholders is essential for ensuring that everyone is aligned with the project goals and safety protocols. Quality builders maintain open lines of communication with clients, subcontractors, and team members, fostering an environment where transparency is the norm. This openness helps to avoid misunderstandings and ensures that any potential issues are addressed promptly.

Regular Inspections and Compliance Checks

Throughout the construction process, regular inspections and compliance checks are crucial. These are not merely formalities but are integral to ensuring that every stage of construction adheres to the required standards. Additionally, as mentioned in the blog, The Importance Of Regular Inspections And Compliance Checks, these inspections are helpful in identifying potential hazards, structural weaknesses and non-compliance with building codes.

Quality builders conduct these checks rigorously, ensuring that each project not only meets but exceeds regulatory requirements, thereby guaranteeing the safety and longevity of the build.

Choosing a quality builder is essential for anyone looking to undertake a construction project that prioritises safety and durability. The right builder will adhere to high standards throughout the construction process, ensuring that the final product is not only beautiful but built to last. It’s essential for potential clients to seek out builders who have demonstrated a commitment to excellence in every aspect of their work.

If you’re planning a construction project and want to ensure it is handled with the utmost professionalism, consider booking a discovery call with Magico Constructions.

FAQ

What makes a quality builder stand out in ensuring safety?

A quality builder stands out by surpassing standard safety requirements, implementing rigorous training, and using advanced technology to enhance onsite safety protocols.

How do quality materials contribute to the durability of a building?

Quality materials are crucial as they endure over time without compromising structural integrity, thus playing a direct role in the building’s longevity and safety.

Why is skilled workmanship important in construction?

Skilled workmanship ensures precision and adherence to construction best practices, which are vital for the structural integrity and overall safety of the building.

What are some innovative construction techniques used by quality builders?

Quality builders employ innovative techniques such as robotic automation and advanced structural methods to enhance building safety, efficiency, and durability.

How does comprehensive project management affect construction safety and durability?

Effective project management coordinates all aspects of construction, ensuring safety protocols are followed and the project adheres to planned specifications for ultimate durability.

Why is attention to detail critical in construction projects?

Attention to detail prevents minor defects that can lead to safety issues and structural weaknesses, ensuring the construction is carried out flawlessly.

How does proactive communication contribute to construction project success?

Proactive communication ensures transparency and alignment among all stakeholders, helping to prevent misunderstandings and promptly address potential issues, enhancing project success.

What role do regular inspections play in maintaining construction quality?

Regular inspections and compliance checks ensure ongoing adherence to safety and quality standards, identifying and rectifying potential issues before they become significant problems.

Challenges of the NSW HBC Scheme - Magico ConstructionsMagico Constructions

Challenges of the NSW HBC Scheme

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For those who are working in the NSW construction space, please consider voicing your opinions and concerns on the Home Building Compensation (HBC) Scheme.

Those who know me understand that I have always advocated for an overhaul of the HBCF.

Link to Home Building Compensation Fund Review

For most multi-million-dollar projects, the HBCF cover of ‘just’ $340,000 offers very little in the grand scheme of things.

Not only that, given that the HBCF policy only covers extreme situations — such as a major defect, the builder going insolvent, or being unable to complete the work — the costs of HBCF can often be an unnecessary expense for the owner.

The current HBCF overhaul under consideration proposes increasing the coverage from $340,000 to either $440,000 or $540,000.

While I do support the idea of increasing the cover amount, I am not in favour of raising the average insurance cost by $4,790 to $5,130 for new home builds, or by $1,450 to $1,550 for renovations and alterations.

One thing many may not be aware of is how incredibly difficult it is for builders to increase their HBCF insurance cover.

For a new building company, it’s often almost impossible to grow the business, even if you want to, as increasing your HBCF cover typically requires capital injections — making it financially impossible for most.

The other gripe I’ve always had with HBCF is the fact that it fails to consider that most multi-million dollar projects often having a building cycle that is longer than 12-months.

Meaning that the majority of your HBCF insurance coverage can be held hostage by projects that run over a 12-month cycle or are running late.

This effectively prevents the builder from being able to pick up new projects, which results in the cashflow purgatory that many face which leads to insolvencies.

In fact, the current ASIC data shows that ‘there were 1372 construction companies which entered into external administration for the first time in 2023-24 compared to 981 in 2022-23, and 513 in 2021-22. Construction industry insolvencies in NSW increased by 40% in 2023-24.’

However, what that data doesn’t capture is the building businesses that are sole traders or partnerships that have also gone into administration or insolvent.

Now, more than ever it is important to choose your builder wisely.

For builders, it is even more important to choose your clients wisely.

Having recently gone through unprecedented events involving difficult owners myself, I must confess that I’ve learned a lot about the legal shortcomings of industry-standard contracts.

Did you know that as a builder, if you encounter a difficult owner who refuses to pay, there’s little recourse but to take them to either adjudication or NCAT?

While you could always contractually ‘suspend’ work on-site, there are no means of recovering lost costs except through legal battles, which can drag on for months or even years.

These are the issues not many people are talking about.

Unfortunately, only those who have experienced this first-hand can truly relate and often only discover these challenges when it’s ‘too late’ in most cases.

What’s worse is that some owners deliberately wait until the project is nearing completion to instigate these non-payment issues, knowing it would often cost the builder more in legal fees than simply walking away and cutting their losses.

In an ideal world, there would be greater transparency, not just for builders with checkered pasts, but also for owners who are repeat offenders, deliberately refusing payment to hard-working builders and subcontractors.

With the forecast for the residential construction sector looking grim, it’s no wonder that many builders have decided to call it quits.

It’s simply becoming too hard, and good people are being taken advantage of.

Here’s hoping that the HBC review will bring about positive changes to support the building industry.

In an ideal world, this review would not only result in greater coverage for homeowners but also consider extending the insurance coverage period to accommodate longer projects. This would enable builders to grow their businesses organically with a roll-over insurance cover.

Book a free call with our team today and get expert guidance from a licensed and qualified builder.

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