10 Lessons - Part 9 - The Builder
Hi, and welcome back to part 9 in our 10 part article series on the 10 things I have learnt about property development, while navigating construction and property investing in South Africa.
In this article I have some words of advice on the builder / contractor that you select to undertake your building works for you. Contractors generally have a certain level of building experience and checking their registered associations, CIDB grading and references, will give you an indication of this level of experience. Most importantly make sure to deal with a contractor who has the experience to build the type of structure that you intend to build.
It's been said over and over, don't use a builder who is not NHBRC registered. This is important because then there is a form of recourse should something go wrong. Unfortunately in the world there are a few unscrupulous people around who are willing to take advantage of others with lies and deceit. Don't just trust a builder that says trust me, rather know the truth for yourself.
Let me give you some examples.
Check and agree on your builders quote, what is included and what is not, and when he starts working check the products being used against the quote, or get a professional to check it for you. Get the builder to provide the full detail for the products being used. For example, make sure you know what type of paint he is using, and how much paint it should take to complete the work. You have a right to understand the quality of the products being used. Not to mention, he may be charging you for the most expensive paint, claiming to use more than he is, but buying and using the cheapest paint. Check the builder. In larger developments, specifications would have been provided by the architect and engineer and the specified items would need to be approved by the professional before they are used or installed.
Unfortunately it cannot be overlooked that some builders will claim to be established and have established teams, but often times, they will simply make up teams of men to complete works from casual laborers, and have a supervising foreman overseeing the work. These types of construction teams can become difficult to manage, as there may develop a dispute between the laborers and the builder, especially if he has not paid them, which would impact on the work, and become your problem to resolve.
The JBCC (Joint Building Contracts Committee) suite of contracts offer contracts that can be used with your building project. I would recommend The JBCC® Small and Simple Works Contract for your project (smaller projects). This contract is intended for alterations, renovations and additions to existing buildings, or generally used for works such as new building works that are not more than three stories in height and where no sophisticated building systems are used nor complex services are to be installed.
Make sure you sign a contract with the builder where all items, costs, specifications and times are agreed, then keep them to their agreement.
There you have it, part 9 of the 10 lessons I have learnt about developing property through being a project manager. I hope that you have gained some insight from this article that will help you to make more informed decisions on your next building project.
Be sure and keep an eye out for my next articles on the remaining lessons, and leave a comment with any questions or topics you would most like to hear about next. You can also sign up to our mailing list and receive our articles direct in your inbox so you never have to miss an issue.