Trades Explained - The Builder
Building Quotes
from local builders
The Builder is the King of the construction jungle.
A registered builder is authorised to manage the total construction process and supervise the work of both qualified and non-qualified trades. The builder has proven to the authorities that they have the experience and knowledge to manage a construction project.
Hiring a Builder
- When hiring a builder, always use a contract form that clearly spells out what is being provided by the builder. The builder is required under their building registration and also legislation to carry insurance on the building project if the total project costs exceeds a certain amount (usually around $5,000, but check with the state building authority).
- By definition, a builder is qualified to manage multi-trade projects. Usually, a builder will engage and pay the trades for their work on the project and charge a fee or margin over and above the sub-trades costs.
- The builders price should be all inclusive. Where exclusions exist, they should be well identified in the contract documents
- A builders price will be based on the construction documentations provided. Construction documentation usually consist of plans, working drawings, engineering specifications and other detailed specifications on fitting, features and fixtures. The quality and detail of the plans and specifications will determine the accuracy of the price.
- Where an item is not shown on the construction documentation, or are changed after the price has been submitted, these omissions or amendments will form "variations". Variations can prove to be very expensive. It is best to have a method of pricing a variation written into the builders contract. For example, initial price - works not to be done + cost of variation + builder variation margin.
- Be careful of double dipping, where the builder charges for the original work, plus the variation, where the variation includes some of the original work.
- If you are not experienced in management, it may be worth engaging a Quantity Surveyor who will be able to price your construction documentation and give you a fair build cost that can be used to compare builders quotes.
- If your builders quotes vary wildly, you will need to ask for more detailed breakdowns. Variations in quotes usually indicate missing components or errors in reading the construction documentation.
- Builders prices are competitive and comparable. Significant variation will be because of omissions, errors or grades/quality of materials. It is unusual to find major variations because of hourly rates or builders margins.
- The easiest way to hire a builder is to head to Service Central's Get Quotes form and fill it out. Simply head here: /building/get-quotes/
Who do builders work with?
- Builders work with, supervise and take responsibility for all trades on a particular project
- If you have engaged a builder, you have engaged and are paying for a construction manager who must take responsibility and sort out building related issues.
- The builder will work with the engineer, architect, interior designer, suppliers and others involved in the preparation of construction documentation.
- The builder will work with the local authority building inspectors and rectify any matters failing the building inspection.
What do builders cost?
- A builder will usually price the job based on the specifications and documentation such as plans that you provide. The price will be made up of the cost of trades and materials plus a builders margin, usually around 20%.
- Variations will be charged for any errors, omissions or alterations to the construction documentation provided
- All builders should be engaged on proper contracts clearly identifying what is included in the price, what is excluded and what the fee and/or penalty there will be for over-runs and major price variations.
- The larger and more complex the job, the important it is to have good documentation.
Building Grey Areas
- Many and varied.
- An architect or Project manager can be engaged to prepare all of the construction documentation and engage the builder on your behalf. Under these circumstances, the builder is reporting to the architect or project manager and they, in turn will be reporting to you.
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Hello. I have a couple of questions I'm hoping you may be able to help me with. Is there a specific procedure to have variations formalised? Whether you are engaging a builder or sub contractor without a written contract? In my situation I was quoted 16k for a job & finially charged 32k where no variations were asked for. It becomes an issue of my word against the builders. And finally is it normal for a subcontractor to claim a Builder's Margin? I engaged a tradie whom I thought was a builder. (we had no written contract) He looked after the engineering inspections, hired an apprentice, paid for & organised materials & deliveries etc, only to tell me after completion he was acting as a subby even though his name was all over the certificate of likely compliance (tas). I later found out I was being charged hourly at $60 an hour for him & $30 for the apprentice, hence the reason for the costs blow-out. Then to add insult to injury, he charged me a 10% builder's margin & removed all the excess materials. I look forward to your thoughts.
over a year ago by peter
P.
Building Quotes
from local builders
