Preliminaries (or ‘prelims’) provide a description of a project that allows the builder to assess the work required to formulate a scope and or a cost analysis. Depending on what stage the client is at, some of the preliminary work provided by Oak River Homes may include:
• Evaluation of existing dwelling and the clients design requirements
• Detailed and Contour Survey
• Identification Survey
• Soil or Geotechnical report
• Engaging of Designer/Architect to draw up concept designs and working drawings
• Engineering design and specifications
• Cost analysis/Quoting
• Town planing advice (DA)
• Certification – council and building approvals (BA)
• Other specialist consultant reports
A client in the very early stage of deciding they are wanting a building project, or have yet or engage a designer/architect, may require us to perform some or all of the tasks listed.
If the client has already got these documents in order, Oak River Homes may be required to review the documents and produce an accurate quote.
In most cases clients get in contact with us with only some rough ideas (some more detailed) in mind about their project, which is fine, this is what we specialise in. Firstly, we offer a free on site consultation and project assessment. While doing this, we both determine what you are wanting to achieve, and at what stage your plans and documentation are at.
Here is the common schedule of events for most building projects (some of these may not be required, or you may have already)
We get asked that a lot. How much a square meter?
The reality is, for a custom built project, there is no set rate. That’s because no two projects are ever the same, no site conditions are the same, and no clients are the same.
A square meter rate can be useful at the outset when formulating a starting budget. If the client has X amount of budget, then the size of the building is approximatley that divided by the rate. This rate needs to be varified by the builder by doing a proper quote. More often the rate applied at the beginning of the design procedd is different to the ultimate cost.
A proper quote requires the builder to fully understand the plan, the scope of work, site condition, and the time constraint. Like building lego pieces, each component is priced accordingly before assembled to produce the final figure.
In order for a quote to be meaningful, it has to be accurate, contain clear and detailed information for both parties. An accurate quote takes a significant amount of time and money to prepare as each project is different in scope and site conditions.
It is easy to get a free quote, but those providers will not want to spend the time or effort. They can apply a square meterage rate or low ball the quote and make up their margin by lowering standard or adding extras during the build. Too often the owner engages the lowest cost builder because it is hard to understand the quote. What sounds like a good deal in the beginning can end up more costly or the project just fails to achieve the desired outcome.
A paid service allows us to spend more time to investigate deeper. In particular for renovation work, multiple site visits and confirmation may be required. If we are willing to enter into an agreement with you, we are committed to producing a quality quote with all the scope assessed, unforeseeable items allowed.
Plus, if you proceed with Oak River Homes as your preferred residential builder, this fee will be deducted from the contract price at the deposit stage of the project. The amount is fully refunded if you choose to go ahead.
We also acknowledge that if we do not win the job, our expenses will NOT be recouped from the fee we charge. During our initial consultation, we will estimate if the owner’s budget is workable. If we believe there is a mismatch, we will not offer this service. We like to provide a personalised, transparent service with a tender that will give you confidence and certainty that your project will be completed to an exceptional standard, on time and on budget.
Yes, we do provide an alternative which is ‘the normal builders quote’… a rough estimate which takes a couple of days, but this is not very accurate.
This is usually because others don’t spend the time and effort producing accurate take offs, sourcing quotes from suppliers or sub-contractors, or finding out what it really is that your after in detail.
This practice often leads to unnecessary variations, disappoint and disputes during construction, not to mention extension of the construction period costing you time and money.
We can provide an ‘estimate’ the same as other builders free of charge.
If we are provided with accurate and detailed documentation, the quote produced will be precise. For a typical project, a 4 week turn around can be expected.
On the other hand, if the document is lacking, the estimating process can be done in a couple of days. This is often the case if the client is seeking an estimate during the design process. A basic concept drawing can be used provided that the client understands accuracy will be poor.
Ideally, a detailed set of architectural drawings, engineering design, soil test report, schedule of finishes, and fitting will be a basic minimum requirement for any accurate quoting to be achieved.
The fee ranges between $550 to $1,000 depending on the complexity and size of the job.
For a custom build project over $800,000, it is normal practice to engage the service of a Quantity Survey (QS) and work of Bill of Quantities (BOQ) early in the design process. The main purpose of a BOQ is to itemise and define a project so that all tenderers are preparing their price and submission on the same information.
It is not uncommon to find that the quotes from builders differ to the BOQ report, this can be due to:
• Tendering builder’s capacity and workload in their pipeline.
• Quality of the trades that the builder employs
• General market conditions at the time of tender
• Builder’s different assessment of the project risk
Each builder has a different assessment to the project risk and applies a different methodology to run the project. Oak River Homes ensures all projects we deliver are tested through our rigorous quality assurance program before it is handed over. We have developed systems and procedures to allow a consistent level quality.
To make the quote/contract as accurate as possible, you need to define what exactly is going to be included down to details such as what light bulb you are going to use. Sometimes, that is not possible at the time of quoting or contracting. There are two common terms used to allow for such variables and these make the quote more transparent for the client to see what the builder has allowed for:
If you’re confused about these building industry acronyms, don’t worry some builders don’t know the difference either.
A Prime Cost item is an amount of money which has been allowed for an item in the project for which the labour which goes with that item has been included within the total price of the project. The PC amount is to supply the item only.
An example is a toilet suite. The labour for the plumber to install the toilet is included in the total project cost but the exact toilet may not have been known at the time of pricing, therefore an allowance was made which could be varied once the toilet was chosen. Regardless of which toilet was chosen the cost for the plumber to install is the same so there is no need to make the cost variable, therefore it is included in the total price.
Provisional Sum items are similar in that they are an allowance for an unknown item but in this case, it includes materials and labour. PS allowances are often used for excavation where the exact quantities are not known or things such as a kitchen which the price would include to supply the cupboards and bench tops as well as the labour to install.
While PC and PS items allow the contract to be flexible, we always recommend choosing as much as possible before signing the contract and lock away these costs so the whole project cost in know before it even commences. The less to so during construction the better, there will be plenty to do, you may as well get the things you can ticked off the list as you can early.
We hope that helps you to distinguish the difference, it sounds a little complicated but basically, it’s just a more transparent way to show the client what we are allowing for, instead of over allowing or purchasing the cheapest fixtures and fittings possible after the contract is signed.
Where Prime Cost Items (PC’s) and Provisional Sum (PS) allowances have to be shown in a quote or contract document, the amount shown should be inclusive of GST. e.g.:
• Tile allowance PC $35/m2 (inclusive of GST)
• Landscaping Provisional Sum $10,000 (inclusive of GST)
Unlike a variation, PC and PS are adjustments to a contract. If you want a watertight contract, it is better to have as little PC and PS as possible, making the builder carry all the risk of supplying the items. This is usually quite difficult due to the client not yet having time to decide on the item, or the item having a certain amount of known to it.
If you want to share some of that risk, having an agreed PS or PC can work in your favour, plus let you choose what you want, it’s your home.
For example – if the builder was to allow $35/m2 for 10m2 of floor tiles based off the quality range specified by the client = $350.00 – then the client was to choose floor tiles for $30/m2 for 10m2 = $300.00 – then the builder would then deduct $50.00 from the contract price. PC and PS items only usually make up around 30% of the overall project so the majority of the contract is usually fixed price.
You’ve decided to do some renovating. To save money, you’re thinking of drawing a sketch instead of hiring a drafter or architect. This can be your first mistake. You might save a few dollars initially, but your sketch will probably cost you more than the cost the professional to do it later on.
You might get away with not hiring a specialist for a very small renovation project, but for anything larger, from a kitchen or bathroom renovation to a home addition, you need to know that no details have been left out. This isn’t for your sake, only. The builder and all tradesman that will be required for your project will want to be confident that the job they’re doing is what you really want them to do and conforms to Australian building standards.
Plus, if your obtaining multiple quotes for your project, once it’s on paper you know that everyone is going to quote on the exact same design and specifications, comparing apples with apples.
A specialist will give you detailed plans that will enable you to do accurate costings for your project. They may even be able to save you money by recommending cost-cutting design changes plus most people find it hard to envisage what they are wanting done until it’s on paper.
Nowadays you can even request 3D drawings of the whole project or individual areas to help you picture what is going to look like, or you can go one step further and request a full 3D walk through of your project, so you can gauge space and look around your new home before anything is even started.
In short, the engineer who provides the footing or slab design needs to know what the ground is underneath or what the structure is sitting on. In order to obtain this information for their plans and specifications, they require a soil test. This is usually a large drill mounted to the rear of a truck or Ute that can drill a hole in your land to find out what is below, giving them the engineer all the information they need.
Unfortunately, most people who have already arranged for their design to be carried out prior to speaking with us assume that’s the only plans required to build.
The architectural drawings, concept or working drawings is just the design of the project and is commonly lacking all of the structural information, or the backbone to the build.
There are many occasions when a structural engineer is needed in order to get council approval (DA) for a residential project or renovation. Their job is to provide the technical knowledge to ensure a weight bearing structure is capable of handling the load placed on it. Some typical projects structural engineers can report on or design include:
• Internal or external wall removal or relocation.
• Structural beam design – timber or steel
• Structural slab or footing designs
• Second storey additions
• Retaining walls (over 600mm in height)
Because the structural engineers specify these ‘backbone’ items of the project it is near impossible to accurately quote on the project until they have been engaged to carry out the plans and specifications.
Traditionally a ‘building approval’ (DA or CDC) is referred to as ‘council approval’. This is because previously the ‘council’ came out to inspect all residential construction work. Nowadays a private licensed building certifier carries out these tasks and lodges all of the information into council to speed up the process.
The building certifier is responsible for assessing whether proposed building work complies with the ‘Building Act 1975’ and associated codes and standards. The building certifier who issues the DA or CDC must also carry out certain inspections to determine if the building work complies with the approval.
The certifier usually provides council with:
• Title / infrastructure / flood level searches
• Relaxations to boundaries
• Site inspections (frame and final)
• Building approvals
• Compliance assessments
Most residential construction work requires building approval. Especially anything structural, this way when you go to sell your property all documentation is listed with the Local Council and there will not be any problems. The certifier is independent of Oak River Homes but looks over all of our work and signs off on it being done correctly.
A survey which is required for the purpose of identifying existing buildings and improvements on a parcel of land is referred to as an Identification Survey or just Ident. It may only be undertaken by a Registered Surveyor.
It is always recommended to engage a Surveyor for an Ident survey when you are purchasing a property. Your licit will normally obtain an Ident report as a matter of course. He does so to protect you against any problems which can only be detected by a surveyor.
Legislation requires obligatory warranties and other statutory information from a vendor of the property. The Ident report can supply other required information and speed up the sale.
Through your Ident Survey you can be sure that you are not buying any problems that may make the property difficult to sell in the future or create anxiety with neighbours or public authorities before you even move in. More importantly, you are sure that you are buying the property that you have been shown and whether or not the property has any defects which may devalue it.
A Surveyor measures the site involved to determine the location of buildings on or adjacent to the land and any fences present. He will check for the existence of Easements (for drainage, etc.), Covenants and Restrictions on land use, and whether or not the subject land complies with the terms of these conditions. The Surveyor pays special attention to any encroachments by or upon the land or upon any easements. In the instance of a residence the Surveyor will report on the distances of the walls or eaves and gutters from the side boundary of the land.
Detail surveys are a basic prerequisite for building and land development. In most cases, the purpose of detail surveys is to indicate features on, and adjacent to, a property.
There are a number of site features and levels required by architects and planners. A topographic survey is a vital component of a successful development application for any development of your land.
Features of general detail surveys include:
• Levels & contours related to Australian Height Datum (AHD)
• Tie into cadastral reference marks & plot approx. boundary on plan
• Field survey of site detail & features
• Field location of visible services plot levels & contours over site
• Detail of significant trees on site over 0.2 diameter trunk
• Note of retaining walls, changes of grade etc onto adjoining sites
• Location of existing and adjoining houses/structures and floor and apex levels
• Pickup of road & kerb details at site to crown
Projects involving excavation will require an assessment to find out what services are underground around your property.
Common searches include:
• Telecommunication location
• Gas lines location
• Sewer main and water supply lines
• Storm water main
• Underground electricity supply
Part of the preliminary searches will involve extracting information from council regarding your property. Most of these searches are done through publicly available data. Oak River Homes can help you make sense of the search result. We pay attention to these common constraints:
• Zoning of your property
• If the old house is protected, if you are seeking to knockdown and rebuild.
• If the property is affected by flood, or is in the overland flow path
• If there are protected vegetation
• Heritage listing
• Bush fire zoning
The result will determine if we need to call on other specialist consultants such as a town planner, or hydraulic engineers.