Hiring a ‘one-man-band’ or small-scale builder to knock you up an additional dwelling is an attractive proposition… …isn’t it?
The promise of utmost attention and lower costs is tempting. But before you dive in, consider the potential pitfalls.
Case Study:
Recently, we had a client who decided to engage his own builder to build a deck adjacent to the Modspace® Home we delivered to him.
The builder was cheap (ticked that box), but that’s about where it stopped.
Problem #1 – The builder was not qualified to do the work he quoted. So, when the council asked for his ROW (Record of Works), he couldn’t produce it because he wasn’t licensed.
Problem #2 – Due to lack of experience, he didn’t use the correct grade fixings under the deck and had to redo his work. (Do you think he would make a margin on this job now? Will he come to help the client out later down the track? I don’t think so…)
Needless to say, the Client was frustrated and so was the Council. What was meant to be a simple deck build turned into a headache.
So, what went wrong, and what could go wrong?
Lack of Expertise:
Limited Skill Set: A single builder may not be experienced in all areas of construction. Their (few) colleagues can offer limited support.
Subcontractor Reliance: They may rely on subcontractors, which can introduce additional complexities and potential delays.
Insurance and Liability:
Not enough Cover: A one-man band might have limited insurance coverage, leaving you exposed to risks.
Legal Implications: In case of accidents or project failures, you (as PCBU) could face legal and financial consequences.
“Yeah nah, I’ll definitely be there next week”:
Health Issues: A single builder’s illness or injury can halt the project.
Personal Commitments: Unexpected personal commitments can disrupt the timeline.
Weather Delays: Adverse weather conditions can further delay the project.
Quality Control Issues:
Too busy, you can wait: A single builder may struggle to maintain quality standards, especially if he has multiple jobs on the go, stretching his capacity to do consistent quality work.
Limited Resources: They might lack the resources and manpower to handle complex projects efficiently and in accordance with Building Consent plans.
Financial Risks:
Quoting (or was it a ‘quote’?) Construction Work over $30,000, by law, requires a Construction Contract in accordance with the Construction Contracts Act 2002.
Most builders won’t know how to provide a compliant Construction Contract and the correct Payment Claim documentation.
This puts you in serious risk.
Well defined, compliant Contract Documents and Payment Claims are a vital legal document if you want security over the payments you make.
Payment Disputes: There is potential for payment disputes and delays if the builder faces financial difficulties or doesn’t complete the work according to the Contract.
Too bad, I’m out: In worst-case scenarios, the builder might abandon the project, leaving you out of pocket with a lost Deposit and unfinished work.
…you get the picture.
Why a Reputable Company is a Safer Bet
Experienced Team:
A team of skilled professionals can handle diverse tasks efficiently.
Our founder built his first house in 1987 (read that again).
We’ve got Licensed Builders, Licensed Designers and qualified trades on our side. We’ve designed and processed hundreds of building consent applications throughout many different districts and delivered our products far and wide across New Zealand.
Insurance Coverage:
Adequate insurance protects you from potential liabilities. We spend tens of thousands of dollars per year on premiums, to protect you, our Clients.
Established Reputation:
A reputable company has a proven track record and positive reviews. Read ours here: Site Scope Reviews
Project Management:
Experienced project managers oversee the entire process from Design and Consenting, through the Factory Build and right through to Code of Compliance (CCC). Leave the hassles with us.
Quality Assurance:
Strict quality control measures ensure a high-quality finish. We use an app called Safety Culture, where we complete all our own inspections through a checklist we’ve built from years of experience.
Construction Contracts:
In accordance with the law, we ensure all our Projects are bound by a Construction Contract. This contract sets out the terms and conditions of our engagement with you in depth.
We’ll include the Scope of Works, Plans, Specifications, Payment Schedules, and a whole lot more.
With each invoice we send, you’ll receive a Payment Claim, which show exactly what we are invoicing you for, and how it relates to the Contract.
A crystal-clear, methodical, legal way of transacting.
Financial Stability:
With external consultants, advisors and an in-house qualified accountant you can be sure you’re in good hands. While we may not always be the cheapest, this is for good reason.
We’ve been here for years, and we’re going to be around for years to come. To ride out the good years and the tough, we maintain a strong responsible fiscal position so we can honour our warranties, and take care of you, our most valued Clients.
Are we telling you to avoid all ‘one-man-band’ or small-scale builders? No, of course not. But we’ve told you about some of the risks and pitfalls to watch out for.
At the end of the day, it’s your hard-earned cash. We trust you to make the best choice.