PROPERTY DEVELOPMENT

Have you chosen the right builder for your development?

December 16 2016
choose-developer

There is a common misconception that “all builders are the same”, but is every builder really one size fits all? Or is there a chance that you have not chosen the right builder for your development?

There are a lot of builders in Perth, and on the surface, the product, service and prices they offer can seem quite similar. It wouldn’t be wrong of anyone to think that they are all the same, after all they do all build houses right?

Unfortunately, that is the thinking of a lot of first time developers who sign up with a builder for their first development. What they don’t understand is that the processes, approvals,  procedures and construction of a development site can differ quite greatly from a regular single dwelling. Not all building companies are well versed in delivering a development product that will meet the financial goals of the developer, as they are used to dealing with owner occupiers.

Why aren’t all builders the same?

Some builders say that they are development experts, but they don’t have any specialists who understand the complexities of a development site. When sourcing a builder ask them about the experience of the following key staff who will be working with your project:

Sales Consultants

  • How many development sites has the Sales Consultant worked with?
  • Do they understand the R codes, zoning, requirements for developers in your council?
  • Do they understand your goals as a developer for how the development needs to perform for you? Are they speaking to you with these goals in mind or focusing on the ‘fluffy’ talk?
  • How many developments they do in percentage of their total builds?
  • Does the building company do it’s own developments?

Designers

  • Do the designers understand the best way to maximise the space on your block?
  • Do they understand the council and planning requirements for your area?
  • Do they design dwellings with your target buyer or renter in mind?
  • Do they understand the best design techniques to minimise construction costs?

Estimators

  • Do the estimating team know how to negotiate with suppliers to get the best deals on multi unit sites?
  • Do they understand the site works involved in a development site and know the best ways to reduce costs?

Schedulers

  • Have the scheduling team worked on multi unit sites before?
  • Do they have the experience to reduce delays in construction by getting the materials required to site on time for all units?

Administration

  • Do the administration team understand how to successfully submit planning and building approvals?
  • Are the Pre-start Consultants trained in the best fit out choices for investment properties?

Construction Team

  • Are the Construction team experienced in supervising multi unit sites?
  • Do they understand how to manage units at different stages of construction to minimise delivery times?
  • Do they understand that time is money and how delays on site will affect you as an investor?

How do I find the right builder for my development?

Research is the best way to ensure you approach and deal with the right builders for your development. Don’t be tempted by a promotional deal from a builder who does not specialise in units, it may end up costing you more down the track because they are not familiar with the expenses involved in a development project.

Don’t be afraid to ask your builder to provide you with examples of similar developments they have done to make sure you are comfortable before you sign up.

Choosing a builder

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