There are a whole heap of developer strategies where you might find yourself preparing to build a new home.
It could be a straightforward knock-down rebuild, a duplex development, a sub-division or splitter where you then build on one or both blocks. Maybe you want to engage a builder to select a home design for your block so you can offer buyers a home and land package.
Whatever the scenario, project home builders are a popular choice with developers.
These are typically large companies that do a high volume of home building each year. Because they build so many homes, they have more buying power and can often get better deals on materials and labour.
They also tend to use mass manufacturing techniques, such as pre-fabrication, to streamline the building process and make it more cost-effective. This means they can build homes quickly and efficiently, which is great if you're looking for a simple, cookie-cutter design that doesn't require a lot of customisation.
But how do you choose from the multitude of project home builders working in Australia?
Let’s step through the selection process.
Research and shortlist
Like so many steps in the developer journey, making a good decision starts with thorough research. To narrow down the field, look for project home builders that regularly work in your council area. That way there’s a better chance they’re familiar with the local council rules and regulations and may know where you can and can’t push the friendship.
Look for reputable companies with a proven track record of delivering high-quality homes. You can use online resources like building forums, Google reviews and home builder directories to find referrals. Pay attention to any recurring themes in the reviews, both positive and negative.
Testimonials on company websites should be treated with caution as they’re difficult to verify.
One sure-fire way of getting an honest review is to approach homeowners who have just completed a project home in your neighbourhood and ask them if they’d recommend the builder.
Check credentials
Whether you’re using a project or custom home builder you should always verify the builder's credentials, including their licenses, certifications, and affiliations with industry organisations. A reliable builder should be registered with relevant regulatory bodies in Australia, such as the Housing Industry Association (HIA) or the Master Builders Association (MBA).
Capabilities
Some project home builders are happy to tackle a sloping site, others won’t go near it. Some will do cookie-cutter duplex designs, others won’t. Some will specialise in narrow blocks, others have minimum frontages. Some don’t like corner blocks, some won’t build on busy roads.
Some project home builders prioritise sustainability and energy efficiency, so if this is important you’ll want to seek these builders out.
As part of your homework, you’ll want to find the project home builders that can handle the peculiarities of your particular site, otherwise everyone’s time gets wasted.
And remember, the less customisation you require, the better your bottom line is likely to be. If you can find an existing floorplan and façade that suits your needs, it can simplify the decision-making process and help to minimise costs.
Visit past projects
Project home builders often have display homes that you can visit. This is a great way to get familiar with a company’s design style, attention to detail and ability to handle projects similar to what you have in mind.
The builder may also be able to direct you to client homes that are listed on the market, or that you can drive past to get a sense of scale and finish.
Seeing a builder’s work firsthand is critical to evaluating construction quality. Once you’ve been into a few you’ll start to recognise quality when you see it. Don’t be shy about tapping walls, opening cupboards and testing if bannisters move or floors squeak.
Pricing
When comparing price points, make sure you’re comparing apples with apples. A display home is often fitted out with all the bells and whistles to look extra-impressive, but these upgrades can come at significant cost.
When you’re given a base price for a particular home design, ask for detailed information about what that price includes and excludes, and what extras will cost.
For example very few project home builders include driveways and landscaping so you’ll need to allow for these in your feasibility analysis.
Post-build
Warranty and after-sales service is an important piece of the building puzzle. Find out what kind of warranty the builder offers and what kind of after-sales service they provide once the construction is complete. You don’t want to be left high and dry after lock-up, you want a company that cares about their client through the entire process.
Transparency and communication: A good builder should be transparent about their processes, timelines, and costs. They should communicate clearly and promptly, addressing any questions or concerns you may have without being chased. If you’re already chasing them before you’ve even signed a contract, that’s probably a red flag.
Contracts and legal advice
Before signing any contract, carefully review the terms and conditions and if need be, get legal advice to make you understand all aspects of the agreement.
The co
ntract is prepared by the builder with the builder’s best interests in mind, so you may need to add special provisions to protect your own interests.
Some areas to pay particular attention to include prime cost estimates, which may be underestimated to achieve a lower quote; the completion date and how many days the builder has allowed for inclement weather; the allowance for liquidated damages (the amount a builder must pay you each week for late delivery of your home); interest payable on late progress payments; and what happens if you terminate the contract as a result of a default by the builder.
If a building company is trying to blindside you with a complex contract, you’re probably better off with a different company.
Building a home is a significant investment, so take the time to do your homework. If you ask lots of questions, visit lots of display homes and talk to plenty of referees, you’ll be well-placed to find the right project home builder for your project.
It could be a straightforward knock-down rebuild, a duplex development, a sub-division or splitter where you then build on one or both blocks. Maybe you want to engage a builder to select a home design for your block so you can offer buyers a home and land package.
Whatever the scenario, project home builders are a popular choice with developers.
These are typically large companies that do a high volume of home building each year. Because they build so many homes, they have more buying power and can often get better deals on materials and labour.
They also tend to use mass manufacturing techniques, such as pre-fabrication, to streamline the building process and make it more cost-effective. This means they can build homes quickly and efficiently, which is great if you're looking for a simple, cookie-cutter design that doesn't require a lot of customisation.
But how do you choose from the multitude of project home builders working in Australia?
Let’s step through the selection process.
Research and shortlist
Like so many steps in the developer journey, making a good decision starts with thorough research. To narrow down the field, look for project home builders that regularly work in your council area. That way there’s a better chance they’re familiar with the local council rules and regulations and may know where you can and can’t push the friendship.
Look for reputable companies with a proven track record of delivering high-quality homes. You can use online resources like building forums, Google reviews and home builder directories to find referrals. Pay attention to any recurring themes in the reviews, both positive and negative.
Testimonials on company websites should be treated with caution as they’re difficult to verify.
One sure-fire way of getting an honest review is to approach homeowners who have just completed a project home in your neighbourhood and ask them if they’d recommend the builder.
Check credentials
Whether you’re using a project or custom home builder you should always verify the builder's credentials, including their licenses, certifications, and affiliations with industry organisations. A reliable builder should be registered with relevant regulatory bodies in Australia, such as the Housing Industry Association (HIA) or the Master Builders Association (MBA).
Capabilities
Some project home builders are happy to tackle a sloping site, others won’t go near it. Some will do cookie-cutter duplex designs, others won’t. Some will specialise in narrow blocks, others have minimum frontages. Some don’t like corner blocks, some won’t build on busy roads.
Some project home builders prioritise sustainability and energy efficiency, so if this is important you’ll want to seek these builders out.
As part of your homework, you’ll want to find the project home builders that can handle the peculiarities of your particular site, otherwise everyone’s time gets wasted.
And remember, the less customisation you require, the better your bottom line is likely to be. If you can find an existing floorplan and façade that suits your needs, it can simplify the decision-making process and help to minimise costs.
Visit past projects
Project home builders often have display homes that you can visit. This is a great way to get familiar with a company’s design style, attention to detail and ability to handle projects similar to what you have in mind.
The builder may also be able to direct you to client homes that are listed on the market, or that you can drive past to get a sense of scale and finish.
Seeing a builder’s work firsthand is critical to evaluating construction quality. Once you’ve been into a few you’ll start to recognise quality when you see it. Don’t be shy about tapping walls, opening cupboards and testing if bannisters move or floors squeak.
Pricing
When comparing price points, make sure you’re comparing apples with apples. A display home is often fitted out with all the bells and whistles to look extra-impressive, but these upgrades can come at significant cost.
When you’re given a base price for a particular home design, ask for detailed information about what that price includes and excludes, and what extras will cost.
For example very few project home builders include driveways and landscaping so you’ll need to allow for these in your feasibility analysis.
Post-build
Warranty and after-sales service is an important piece of the building puzzle. Find out what kind of warranty the builder offers and what kind of after-sales service they provide once the construction is complete. You don’t want to be left high and dry after lock-up, you want a company that cares about their client through the entire process.
Transparency and communication: A good builder should be transparent about their processes, timelines, and costs. They should communicate clearly and promptly, addressing any questions or concerns you may have without being chased. If you’re already chasing them before you’ve even signed a contract, that’s probably a red flag.
Contracts and legal advice
Before signing any contract, carefully review the terms and conditions and if need be, get legal advice to make you understand all aspects of the agreement.
The co
ntract is prepared by the builder with the builder’s best interests in mind, so you may need to add special provisions to protect your own interests.Some areas to pay particular attention to include prime cost estimates, which may be underestimated to achieve a lower quote; the completion date and how many days the builder has allowed for inclement weather; the allowance for liquidated damages (the amount a builder must pay you each week for late delivery of your home); interest payable on late progress payments; and what happens if you terminate the contract as a result of a default by the builder.
If a building company is trying to blindside you with a complex contract, you’re probably better off with a different company.
Building a home is a significant investment, so take the time to do your homework. If you ask lots of questions, visit lots of display homes and talk to plenty of referees, you’ll be well-placed to find the right project home builder for your project.
