Hi,
I am in the process of getting a building permit for an extension to my house. I have the certificate of consent to undertake work as an owner builder and am about to put together a list of works I wish to be quoted on. I will be having one builder construct to lock up then I will contract out or complete myself the remaining work. Is there a particular format/template available that I can use to provide to each builder quoting on the main building structure. Eg I want to stipulate type of hard wood used on decking. When I submit the plans for qoute i want to stipulate exactly what I wish to have quoted on. As an owner builder what type of insurance would you recommend as the house will remain vacant until almost complete. Any advice on these questions would be much appreciated. Regards Gary
Dear Gary,
Even though you are undertaking this project as an owner builder, your description of what you want to do is more akin to that of a project manager than an owner builder.
The biggest mistake that people make is the assumption that building work will be cheaper and easier to run themselves rather than engage a builder outright. In 99% of cases this is incorrect.
The first thing you must be very precise with, is the scope of works that each trade/professional is going to undertake. For example is the builder you employ to lockup going to co-ordinate all of the sub trades or are you going to run that as part of the project as well? If the latter is the case who is going to organise the quantities and supply of materials to complete the job?
If it were me I would simply enter into a normal building contract with a builder to get the job to lockup stage. This contract would therefore include the supply of materials and sub-trades, including plumbing and electrical, to get the building completed to that stage. Such a move would also remove the most exasperating aspect of such a job, that is of poor co-ordination of the job by the owner builder. This frustration invariably leads to conflict between the trades and the owner which leads to further delays and cost blowout.
Following that you can then let contracts for whatever aspect of the work you desire, but again I stress you need to know whether the work is to be a supply and fix contract or a labour only contract. The latter will require a considerable amount of time and effort on your behalf.
In answer to your other questions:
- There are generally no forms/templates available other than standard building contracts, however you can ask for a breakdown of the various aspects of a quotation.
* I would use a standard building contract up to lock up stage and try to use a minor works contract after that.
- You can stipulate specific materials for various aspects of the building. Just include them in writing in the contract documents.
* A standard specification would also help to identify the materials to be used
- Insurances. As the (owner) builder you are obliged to ensure:
* that the people you employ are covered by workers compensation
* that the job is covered by public liability insurance and,
* building insurance would be highly recommended.
Finally, as the licensed builder you are responsible for
- arranging mandatory inspections in those states or territories where they are required
- responsible for compliance with all aspects of OH&S under the laws of your jurisdiction and
- most importantly for the final outcome for quality
What you are about to undertake is a very ambitious move. I stated earlier that 99% of these ventures end in tears and that is not an attempt to dissuade you or to instil fear into your ideas; rather it is a statement of fact. Building and building contract law is a highly technical component of life and one that most people do not give enough credit to the skills required.
I have been a licensed builder for 36 years and I can assure you that these skills are not acquired overnight. So I wish you luck in whichever pathway you choose.
I hope this helps.
Kind regards,
Mike