Home Finishes
Home finishes When you build or renovate, the finishing touches are the ones that make the house into a home, the personal choices made of the furniture, decorative pieces, the wall colours and floor finishes can make a stark space into a welcoming cosy room or a modern energising area. The dilemma is that there […]
Land Title Release and Contracts
Sometimes people sign a building contract and pay a deposit on a home when land title is not yet available. Delays in the processing of land title can be lengthy and with building costs increasing rapidly, so there can be contract complications and inconvenience to both parties. Under normal conditions and under most building contracts […]
Prime Costs and Provisional Sums
Prime Cost (PC) items and provisional sums (PS) are two items in a standard building contract which cause great confusion among homebuyers. Most building contracts are called “fixed price contracts”, but the final contract sum can vary due to fluctuations in PC and PS items. A PC item is an amount of money included in […]
Profit Margins in Building
There are many variables which need to be taken into account to comment on profit margins such as the size and type of project, the type of contract, the overheads/administrative structure of the builder, number of sales and other staff employed, the economic state of the industry, whether renovations or new housing and so on. […]
Building Costs
Building costs have risen strongly in recent years and it is important that your building is accurately valued at replacement cost for insurance purposes. If you have not reviewed the “sum insured” on your home recently, then you should do so. To give you a general guide as to recent trends in building costs, you can see […]
Building Inspections: New Homes
Under the Builders’ Registration Act a builder is legally responsible for all faulty and defective work for a period of six years after practical completion. Whether or not you engage a private building inspector will not affect the builder’s obligation for the integrity of the home. However, many buyers do seek assistance from a private […]
Buying a Display Home
Investment in a builder’s display home may be a sound decision depending on your circumstances. Many builders sell and rent back their display homes to recover some of the capital construction costs. Usually a display home will have a limited life until a new development area is built out, so the lease back option can […]
Construction Costs
Construction costs have risen strongly in recent years and it is important that your building is accurately valued at replacement cost for insurance purposes. If you have not reviewed the “sum insured” on your home recently, then you should do so. To give you a general guide as to recent trends in building costs, you can […]
Charging for Quotes: Builders and Subcontractors
Charging for quotations is not a common building industry practice. But builders can pick and choose their jobs, and charge for quotes and in order to discourage “check pricing” by some consumers. A problem can arise when some financial institutions require three quotations before approving a loan amount. Many builders particularly in regional areas are […]
Deposits for Plans
Under a Preparation of Plans Agreement or a Preliminary Work contract homebuyers sometimes pay a small deposit on signing these contracts, which does not commit either party to build the home. The agreement covers the builder’s costs of plans being drawn up, application fees, and the like. Usually if the contract goes ahead, any deposit […]