Choosing your building route

Building a new home is not an “off the shelf” product, it is a complex development that offers both choices and obstacles in abundance.
It is imperative that you choose the building path that delivers the best result to suit you and allow you continue with your everyday life. Each path has a different Financial outcome, but your decision should be based on the most suitable path as opposed to the financial outcome.

MAIN CONTRACTOR ROUTE – Employ a Construction Company with skilled personnel, plant, machinery and an Admin staff of experienced Foremen, Engineers, Surveyors and administrators. Many companies may not have the full complement of trades but they have teams of sub-contracts and professional personnel at their disposal.
DIRECT LABOUR / SELF BUILD ROUTE – This offers a variety of routes but is dependent on an experienced Project Management. A Project Manager, usually from a construction background such as foreman or engineer should have a wide range of construction skills knowledge. Preferably with practical and admin experience all rolled into one. For this comparison it is presumed that YOU, the client, assumes the role of Project Manager and any short coming on your behalf will be complimented by friend or family member also on a “No fee basis”. A Snapshot of your project management duties includes:

Duties of a Project Manager

Setting out - Set out foundations, blockwork, roofing etc. as required.
Plant – Hire diggers, Scaffolding, Mixers, Material handling and organise storage, port a loo’s etc.
Labour - Procure all trades and sub-contractors for execution and completion of development which
Materials - Estimate materials and costs for all different stages of development.
Programme - Co-ordinate engagement of trades and supply of materials on site as required.
Supervise - Supervise workmanship ensuring it’s acceptable for your Supervising Architect.
Budget - Keep tabs on costs, budgets, payments and maintaining project within budget.
Equipment – A van or means of transporting materials, decide on buy or hire of equipment.
Health & Safety – Assume the role of H&S officer for all trades and equipment on site.

Option 1 - Main Contractor Route Tender

You agree plans, specification and finishes with your Architect who in turn creates a series of working drawings and specifications that accurately reflect the style, structure and finishes of your home. Tenders are invited from reputable contracts and the successful contractor carries out the works as requested. You can dip in and out as desired to finalise finishes and fitout. Your Architect input during the construction period can ranging from Inspections to full supervision.

Best fit

Clients with a sufficiently busy life.
Clients with no knowledge or background in construction

Advantages

You make the important decisions and leave the execution with other
Usually the speediest method of construction
Get involved as much or as little as you like

Options

YOU or your Architect can take charge of the construction process
Tenders can include or exclude finishes such as Kitchen, Flooring & decoration.

Financial outcome
For purpose of this comparison this option will be the 100% option.

Option 2a - Main contractor + Project manage combined

Complete the envelope of the house by main contractor as per option 1 above and project manage the completion. The envelope, founds, floors, walls & roof are more demanding trades requiring more plant, equipment scaffolding etc. hence project management for the final stages is much simpler. The Project Manager (you) takes charge and completes the remainder of the project

Best fit

If you thought about Self-Build but unsure? Maybe this option is worth consideration

Options

Keeping main contract on-side to assist with some additional trades if required.

Advantages

Project management during fitout and finishes usually involves the client more in choosing finishes. Now that spaces are clearly visible it help you focus better on what works.

Disadvantages

No monetary allowance for the time and expenses of the project manager

Financial outcome
This should have a resultant saving of 7% – 12%

Option 2b - Direct Labour – Project Manage (but not Hands-on)

You the Project Manager will coordinate the complete construction of your home with procurement of all materials, trades, casual labour, plant and machinery. If organised and managed properly this is an exceptionally rewarding undertaking. The intense involvement will focus you on the finer detail of your home and make some changes for the better during construction. The list of Project Management duties above define the input and commitment for you.

Best fit

Clients with established background in the construction industry with strong Project Management skills

Advantages

You have a direct input in all aspects of the structure and finishes of your home

Disadvantages

No monetary payment for the long hours and months of hard graph.
Some trades may be undependable with allegiance to Contractors who give them regular work.

Options

Source a Project Manager to act on your behalf but know that this will impact on the financial saving.

Financial outcome
This should have a resultant saving of 10% – 20% over Option 1

Option 2c - Self Build – Project manage + Hands-on

Same as option 3 above but you’ll also be hands-on with your own building skills and completing approx.. 25% - 30% of the skilled labour. This option is based on you being a qualified trade person while also acting as project manager. If you are holding down your regular job while embarking on this project you should allow 18 – 30 months for completion.

Best fit

only for experience tradespersons, Set programme to take into account your current work commitments, consider having some help on the project management to lighten work load

Advantages

You have a direct input in all aspects of the structure and finishes of your home

Disadvantages

No monetary payment for the long hours and months of hard graft

Options

Source help with the Project Management to lighten your workload

Financial outcome
This should have a resultant saving of 15% – 25% on Option1