by tom wilson a.c...how to renovate well, have fun, and even do it again ! © tom wilson 2 of 28...

BY TOM WILSON A.C.A

How to renovate well, have fun, and even do it again !

© Tom Wilson 2 of 28

Contents Acknowledgements 3 Preface: 5 The Four Pillars of an EXCELLENT Renovation 6 The First Pillar 6 1. Be Good client. 6 The Second Pillar 7 2. Work at getting a Good design: 7 The Third Pillar 9 3. Good drawings and Specifications: 9 The Fourth Pillar 10 4. Find a Good Builder 10 Some more things to note: 12 5. The Existing Conditions 12 6. The Costs 12 7. Tendering the Works 13 8. The Budget 13 9. Contingencies 14 10. Goods and Services Tax (GST) 14 11. How many tenderers ? 14 12. There are a number of ways to go. 14 13. Handling a Builder's Claim 15 14. A Lump Sum Contract 15 15. The Contract 15 16. Standard forms of Contract 16 17. Latent Defects 17 18. Starting on Site and Site Meetings 17 19. Getting all the "Stuff' 19 20. Should We Live There? 20 21. What is acceptable? 21 22. Who are the Good Guys and Who are the Bad Guys? 21 23. How Often Should we Meet? 22 24. Payments 22 25. The End of the Contract 23 26. Wrapping it up nicely. 23 27. Keeping the Documents 23 28. Photographs 23 29. Some other Questions: 24 30 A Final Note 26

About the Author 27



Acknowledgements:

Thank you to Marieanne Bennie, author of “Paper Flow your ultimate guide to making paperwork easy” for her enthusiasm, critiquing and editing. http://www.paperflowbook.com

Thank you also to Michael Lindell for his most evocative and whimsical sketches.

Finally thank you to Sheridan Johnson at the International Business Corporation for her very quick and expert Dictaphone typing.



Preface:

The purpose of this eBook is to provide an insight into the popular, but often fraught pastime of Renovation and Extending Residential Houses of all sorts.

Its aim is to provide you with an understanding of the process, the time required, what is involved and the help available along the way.

I make the point here, that most of the “Good” renovations lie in glossy magazines on coffee tables and have a short “shelf life” so to speak. On the other hand the “Bad” Renovations seem to move like wildfire through the verbal network acquiring a veracity all of their own.

I aim to show that renovating and extending can be easily done well, and can be fun, such that you might even do it again !



TheFourPillarsofanEXCELLENTRenovation

(Lose any one of these “Pillars” and your project becomes a disaster)

TheFirstPillar

1. Be Good client.

To be a good client means that: Your temperament is suited to it. You must be patient and have a sense of humour. You must be clear about what you want or you work through with designers to firmly establish your spatial requirements and a realistic budget. This is often a chicken and egg situation because you don’t know how much, exactly what you want, and what it will cost. Consequently, there may be several iterations of “Sketch Plans” or “Concept Drawings” before you are really firm about what you want. If you don’t understand a drawing – ask. Many lay people cannot read drawings easily. If you do not understand a drawing, ask for a 3d view. With the CAD ( Computer Aided Design)systems we have these days it is easy to do. Do your research and make decisions quickly, otherwise those that are working with you go off and do something else, whilst you faff around making up your mind. If, as a couple, one “feels” a decision through and the other “reasons” a decision through, recognise this, be up front about it and programme yourselves to make timely decisions. It makes for a happier project.



Pay your people promptly. Projects get a “flavour” about them and this is usually set by the client. There is nothing so de-motivating of a team, as a client who is slow to pay. Grease the wheels. It’s in everyone’s interests Have clear lines of communication. All communication should come from one person, named, the “Client’s Representative” and should preferably be written. I recommend a standard “Triplicate” book to write things down. It obviates the “…but I thought you said….” Scenario. In the case of a Husband and wife, it is usually the Husband, (having consulted first with his wife of course !) who gives the communication. Or more particularly, the person who controls the cheque book. In the end it gets down to personalities but writing things down is of immense help.

TheSecondPillar

2. Work at getting a Good design:

When Clients have come to me, they always say…“We know what we want; we just want you to draw it up”. Hmm… I think to myself and we slowly start to flesh out what is really required. For those who have not built before it can be a very steep learning curve. Clients are very often quite amazed at what Architects or Designers do.

So the start is to find a good designer. This is one of the most important decisions you can make. This can be done through the Australian Institute of Architects or the Association of Building Designers. Check out their Websites, watch any Videos they may have and personally talk with at least three of them before making your decision. Ask them how would they approach your project. Go and look at their work, talk to their clients and ask them how the job went. Also, do not work with friends. Keep the friendship and lose the designer if necessary. This can save a lot of heartache. Keep it “professional” However, I would, as a matter of courtesy, gently explain to them why you have chosen someone “at arm’s length” shall we say.



Work with your designer to incorporate all of those initially vague notions of correct orientation, efficient planning, passive design, active design, cost effectiveness, and delight. There are many more notions that can impinge on a project but I have often heard it said of my profession, that “it is 3% inspiration and 97% perspiration”. This is where a good Designer is of immense help. There are several stages that a good Designer will take you though. The first is the “Schematic” or “Concept” Stage. This is where you decide to go up, go out or a combination of both. You might even build the project in several “Stages”. All of these decisions are done in close association with the budget. Your Designer should be informing you of the cost of the ideas all along the way. i.e. No surprises Once you have finished the “Schematic” Stage you then proceed to develop the approved design. This is called the “Design Development Stage” which might consist of a combination of Schemes A, B, C or D. The first stage is often drawn free-hand but subsequent stages are mostly now drawn on computer using drafting packages such as “AutoCAD”, “Revit” (3D Autocad). Or “ArchiCAD” by Graphisoft and others. Ask your Designer which drafting package he or she uses. We are all tending to use 3D for all our work these days. Once you have got most of the ideas down on paper, you then have to communicate these ideas to third persons, such as the Building Surveyor, the Structural Engineer and eventually the Tenderers, if you are tendering the project. You do this by formulating a “Contract”. This involves the preparation of “Working Drawings”. These are technical drawings setting out with increasing levels of detail, the Projects Location, a Site Plan, a Plan or Set-out Plan, Sections, Elevations and Construction Details. These drawings are combined with a “Specification” which sets out all the things that cannot be readily drawn, such as the Brand of Paints to be used, whether it is two coat or four coat work. Drawings specify location and extent, specifications specify quality. There can be ten to twenty drawings in a “Contract Set”. Plans sections and Elevations may get you a Building Permit but they are not enough to adequately define a “Contract” and eliminate the infuriating situation of “Oh I didn’t allow for that !”. i.e. No Surprises



TheThirdPillar

3. Good drawings and Specifications:

Good drawings and Specifications should aim at having ALL the details clearly set out in the “Contract Documents” right down to whether the door hinges are secured with “Posidrive”(Phillips head) or “Slotted” Screw heads. In a Period Home, “Posidrive” screw heads are an anachronism and slotted screws should be used. I also insist that the slots all be vertical. It’s a little thing, but all the details add up to a coherent whole. “Ah ! Somebody has thought about this…..” It all shows to the trained eye. A good Designer will think of a myriad of little things which all add up to a superior product and a happy client. For instance a “little thing” is to have the Kitchen telephone outlet set below the bench top inside the cupboard together with an adjacent power point and a “Cable Outlet” in the bench top. In this way the inevitable dangling mess of a handset cable and its power pack are placed out of sight. Are there a “his” and “her” bench heights ? Is there a piece of timber (noggin) in the wall to allow the Towel Rail or Toilet roll holder to be properly secured ? They always fall off ! A good set of drawings is immediately obvious to a good Builder. They are clearly set out, they are complete, they are consistent and they are augmented by a “Project Specific” Specification. I have seen too many “General Specifications” which do not relate to the project at hand and indeed have irrelevant clauses from another project. A “Cut and Paste” from a similar project is a recipe for the slow degradation of the respect for the designer and his or her documents, as clauses get left out with each successive project.



I always recommend a “Master Specification” be maintained in the office, with constant feedback from sites being inserted each time a glitch appears. So I would ask your potential Designer at Interview Stage, how are the Specifications produced in the office ? When drawings are re-issued to site, to document an agreed change or correction, they must be issued with a “Issue Number” so that those on site know which are the latest drawings. It is better if the drawings do not change of course, but we are all human. A “cloud” should also be put around the change, so as to make it quite obvious to the Builder and his staff. Just remember that it might be very cold and wet in the site hut and “clarity” eliminates costly mistakes and saves time.

TheFourthPillar

4. Find a Good Builder

Your Architect or Designer can usually provide you with a “recommended tender list” of suitable Builders. I strongly recommend that you take advantage of this ability.

Failing a recommendation, I would looking at their work, talk with their clients, and ask: What was their workmanship like ? What their paperwork was like ?, Were they on time ?, Were the variations reasonably priced ?, Did they programme the works accurately ? Were they polite at all times ? Did they leave the place clean and tidy each nite when they left ? I have found that programming, throughout the whole of the domestic building industry, is quite inadequate, in many ways. Small local builders are not good at really programming the works and giving a definite finish date, although they are getting better. Ask for a detailed programme and ensure all items or tasks are included.



It can be most unsettling for a client and the family to have tradespeople just turn up unannounced, precisely when you are getting out of the shower ! What is the builder’s attitude to problems? Are things a problem or are they a challenge? You really do need a positive sort of person to assist you with a renovation. Attitude is very important and often hard to assess. During the Tender Period, the Builder who asks a lot of questions is not necessarily the best choice. In my experience, there are two types of builders: those who like working with designers and architects, and those who don’t. Those who do find it helpful to have someone to refer things to, to get good, quick answers, (we talk the same language), we very quickly understand if the builder is proposing a better way of doing something. That’s a very much more cooperative situation. With the builder who doesn’t want to work with designers, they are entrepreneurial in outlook, and they want to do their own thing. They want to do it their way, they’ve done it before and they don’t need an architect or designer. That’s fine but I have found that it is really all about teamwork and I’d far rather work in a team than a one-man band builder. “Oh, that’s just the way we do it” is not acceptable.



Somemorethingstonote:

5. The Existing Conditions

It is important to have a good and accurate “existing conditions” drawing. It is really important to have a good basis from which to build a new set of drawings. They should show where all the services are, where the crossovers are, where the boundaries are, where the service poles are, where the gas is, etc. If this is all collated into one good drawing, it just makes it so much quicker for the builder to find things.

6. The Costs

There’s a lot of talk about the expense of renovating. If you consider buying a suit off the peg from large Department Store, you can buy a good suit for say $1,000. However if you want a tailor made suit, that suit may cost you $2,000. So this is the sort of scenario that leads to a view that all architects are expensive. We’re expensive really by virtue of dealing with tailor made products, not off-the-peg products. That’s the fundamental difference that leads to this misconception that really architects are expensive. I do not think we are, given what we produce.



It’s terribly important to be aware of the costs along the way. Without closely looking at the costs at the schematic stage, the design development stage, and even before you go out to tender, you alleviate surprises. If the budget is a major consideration, well then it ought to be monitored all the more closely. If one finds that things are getting out of control, then perhaps you can have tender drawings that give a number of options for cutting sections of the work out. The cost cutting is also then competitively tendered.

7. Tendering the Works

Competition is really the fundamental thing behind tendering. It’s basically designed to eliminate cost as a selection criteria in a way, because if you have three builders all around the same price, cost is then irrelevant. It really gets down to when he can start, how long will he take, what his variation prices are likely to be, and what his track record is, because you are eventually going to give him a lot of money and you need to be comfortable with that decision. It does often get down to: “Well, I’d like to work with that fellow, but I don’t want t work with that fellow”. They are quite subjective things. One of the tricks of the trade during tendering is to also ask for the rates which the builder would be applying to variations for the various trades. So you get a rate for the tiler, a rate for the electrician, a rate for the painter at $60.00/hour, or whatever. These become part of the contract, and when you’re tendering, if you’ve got a similar price and you want to distinguish between tenderers, you look at his rates. If his rates are high, then this rules him out because his variations are going to be higher along the way. Another item which must be included in the contract is the rate for the “Builder’s Margin” or overheads and profit. This is usually 15% and is added to every variation price.

8. The Budget

One of the things I always advise my clients that in renovation work particularly, costs invariably grow 5% for unforeseen events, and then 5% for human nature. You want to move a power point, you want an additional power point, you want to move a window, and these things can be accommodated by variation to the contract. But it all costs money. So you need to build in some room to move in your budgeting for renovations. Ten or even fifteen per cent is a comfortable margin to have in your costings at the beginning of the Contract.



9. Contingencies

We used to have contingencies sums nominated in the contract and the anecdotal evidence was always that, “Oh the builder will go and consume the contingency.” So it became unpopular and we now no longer stipulate it in the contract, but nevertheless, I always advise my clients to have a “notional” contingency, in their bank account basically. Don’t reveal it but certainly just have this as a backstop.

10. Goods and Services Tax (GST)

When receiving a tender it is most important to note whether GST is included in the price. This can often make a tender unacceptable if it has not been included or budgeted for.

11. How many tenderers ?

When tendering a project, it’s important to go out to at least five builders because when you get the results back, sometimes they straggle in two or three weeks late, one will be really high and he or she, if you’re mad enough to take it, will laugh all the way to the bank. One will be really low, but he will have left something out, and three will be around the same. Those three tell you what the job is worth and it also tells you don’t go for the high one because he’s ripping you off. Don’t go for the low one because he has made a mistake somewhere. So, having got your three builders, interview them, look at their work. Ask them as many questions as you can. In this way you will get a feel for whether you wish to work with them or not. Then make your choice. This might take a couple of weeks. Tender periods are normally three to fours weeks. I like four weeks but you really have to hound them to actually get their price in on time. I’m always intent on making it easy for them, I don’t change things during the tender period, and if I do want to change something, I’ll wait until the tenders are received and that we’ve got two builders that are very close. We tender that portion of the work that we’ve changed.



12. There are a number of ways to go.

In my experience, I think it’s preferable and more reassuring and more open, to in fact go out to tender to at least five builders. To simply look up one particular builder, is to place an awful lot of trust onto that particular builder and you are eliminating the competitive element. You’ve also eliminated the competitive element of tendering the rates for future variations. However that said, negotiating a contract with one particular builder, is a perfectly legitimate way to go, but I would advise to have access to a cost consultant along the way, or a quantity surveyor so that you can get him or her to check when any variations come through. I would also get someone to inspect the works along the way, just to reassure you that he’s doing the right thing. It’s not unknown to have the works inspected by an independent person, and the AIA’s ArchiCentre is an organisation which can provide that sort of service, or an independent architect of your own choice could also help you here.

13. Handling a Builder’s Claim

When a builder makes a claim, architects and designers usually like to get them to set out the percentage completion of each trade, and as work progresses, you’ll see each trade coming to a hundred per cent completion. Obviously excavators are the first, concreters the second, steel work third, brick work fourth, carpentry and joinery fifth etc. So the first month you might do the excavation and the concreting so they’re a hundred percent but all the other trades are zero. The next month, you might do the steel work and the framing, so they’d be a hundred percent. Against each of these trades it gives a breakdown sum which when all trades are totalled, totals the contract sum, plus what’s called preliminaries, margin and overhead. The “preliminaries” are the site hire of sheds, hire of equipment, paying a foreman etc, whilst outside the sub-contractor’s area, they are very necessary in terms of organising a smooth running project.

14. A Lump Sum Contract

When one tenders a project, you end up with what is called a “lump sum contract”, and it is important to understand it is not a fixed lump sum. It can be varied. You can make changes along the way. If time is of the essence, you can do what’s called a “Cost plus contract”but I’d advise against this because it’s too open ended. It is best used when trust has been established and transparent costing processes are in place. If you have built with them before and there is a Building Cost estimator on board, then by all means, go “Cost Plus”



15. The Contract

The contract is an important set of documents, comprising, the Drawings, the Specification and the Contract. These documents, when read together, all set out the work, the location, the extent of work of each trade and also ropes in the “Standards”, or SAA Codes (Standards Association of Australia) against which the works are to be assessed and with which the works must comply. The separate document which is “the contract”, is filled out by the Designer and delineates both client’s and builder’s responsibilities, and if there is an architect or designer involved, it binds them into the contract as well and empowers them to make instructions on the client’s behalf.

16. Standard forms of Contract

It is terribly important if you’re spending hundreds of thousands of dollars to have a contract. The Institute of Architects (AIA) produces a contract, the Master Builders Association (MBA) produces a contract, and so too does the Housing Industry Association (HIA). They all have slightly different biases; the HIA and MBA contracts are more intent on protecting the builder’s interests and rights to being paid. The Institute of Architects’ one is intent on ensuring that the architect is empowered to instruct on the client’s behalf and also has the power to require opening up things and showing of receipts, and proving the claim etc. All set out the rights and responsibilities of both parties to the contract. At the beginning of the contract are various consumer protection requirements, cooling off periods etc. Along with the claims along the way, there’s what’s called a “retention sum” and this is a sum drawn up as a percentage of the contract sum which is withheld from a builder at each claim and it is usually 5% of the contract sum. This is the amount which is withheld from each “Progress Payment” The purpose of this retention sum is to provide the proprietor or owner with a sum of money to start up the contract again should the builder default or become bankrupt and the contract is determined. These amounts should clearly be set out in every progress certificate issued by the designer or architect and at the end of the job, or more particularly at what’s called “practical completion” where the client moves in and occupies the building. Two and a half percent (2.5%) of this retention sum is released back to the builder. Now the remaining 2.5% of retention monies is withheld for the remaining “defects liability period”. This can either be three months, six months or twelve months. The point of this defects liability period is that buildings move: doors stick, windows stick, little problems arise and the builder is required to come back at the end of that defects liability period and rectify those defects which have been listed. It is important that these defects are notified to the builder within the defects liability period, whether it’s six months or twelve months is immaterial, it must be notified within the period. If there are a number of trades involved and there are extremes of climate, both heat and cold.



With large renovations involving many materials, I recommend a twelve month period to allow a full cycle of weather to test the building, so to speak, and allow any defects to be manifest within that time. Simpler and smaller works may have a lesser time period. Once the time is up, the builder will notify the Architect that he has rectified all of these things and he requires the remaining 2.5% retention sum back. The certifier then inspects the works with the client and issues the certificate or final certificate. That final certificate releases the remainder of the retention sum and absolves the contract which is then legally at an end.

17. Latent Defects

There is only one remaining grey area and that is what’s called latent defects. This is where a defect is not apparent within the defects liability period and becomes manifest subsequent to it. If it can be shown for instance that the substrate for the tiles is the wrong substrate because they all fell off eighteen months later, that then is deemed to be a latent defect. If it’s shown by paint scrapings that the paint work is only in fact three paint coat work where four coat work was specified, well then again, this is a latent defect not obviously manifest within the period but obviously manifest later. Just a note on paint systems. Paints are part of various “Paint Systems”. There are various coats applied: two, three, four or even five coats applied, starting off with a sealer or primer, undercoat and then two top coats. There are various trade paints that combine the undercoat and finishing coat or combine the sealer and the undercoat, thereby eliminating one of the coats. These are fine but they tend not to last as long as a properly constituted paint system. Developers generally use a two coat paint system and architectural work employs a four coat, or even five coat paint system. A four coat paint system invariably lasts twice as long as the developer’s two coat system, and of course it’s twice as expensive and hence the observation that Architects are expensive.

18. Starting on Site and Site Meetings

When the builder starts on site, it’s important to clear his path and come to some arrangement where he stores materials, where and when you will have site meetings, and I’d always ensure you have existing conditions, photographs. If there are extensions out the back at all, photograph the front of the house before the builder starts. It may be cracking is caused by the works at the back, so you need documentation as to the effect of the works, or state of the works, when the works started.



I would recommend site meetings every week at the beginning, and then when the job settles down and is humming along and all the major problems sorted, it can then revert to a two week cycle. But in the end when you approach practical completion, I would again revert to weekly site meetings and at those site meetings, the building designer or architect would chair those meetings and write up the notes from those meetings. Whether they’re works in progress or actions lists, or site meeting notes, they would still list all the items discussed and both who actions them. These will have a number pertaining to the meeting and the item which was in the meeting and I leave them there if they’re not attended to so that when you get to meeting fourteen, then you see that you’ve still got an item from meeting one and the alarm bells start ringing and you start to really ask questions as to why the hot water service has not been placed ! I would also ensure there’s a list of variations that are being contemplated and priced. Whether they’re approved, the amount, or the pending amount so that the client always has in front of him, a notion of what his commitments are going to be. Site notes are a very useful document to record the approval or otherwise of a variation and if properly tabulated, can give a clear picture each week or each fortnight. I wouldn’t let the period between meetings go any longer than a fortnight, otherwise issues can come up at the end of one fortnight and are not resolved until a month later, whereas if the period is more frequent, issues are acted upon more quickly and they won’t get away from you. It is important to maintain site cleanliness along the way. Don’t let a builder let the rubbish pile up or demolition material pile up. A good site is a clean site and it has a marked effect on morale if it is properly cleaned away each day and each week. That’s why I have a specification clause requiring cleanliness on the site and it is a specific item in the trade breakdown from the progress claims.



19. Getting all the “Stuff”

Designers and architects generally leave the final selection of taps and tiles for instance to the client, or if they really want to alleviate themselves of that responsibility, they can leave it up to the designer or architect to do. It is important that these items are ordered on time and are delivered to the site property and properly secured so that they are not pinched. If the proprietor or client orders the tiles for instance, it’s important to have at least 10 to 20% extra in terms of tile area to allow for cutting and breakage etc. Another thing to ensure is that the quality presented in the showroom is also manifest in the tiles delivered to site. As soon as they are delivered to site, one really should open up each box and check that the quality is adequate. I’ve had situations where we’ve opened up the tiles on-site and the tiler’s come to me half an hour later saying “These tiles, I can’t work with them. They are not the same quality as presented to the client.” Tiles are also a fashion item. They constantly change. Whilst there are reputable tile showrooms around town, the tile designs move through these showrooms and very often you might see it six months earlier and when you come back to buy it, they are no longer there. You really have to ensure that if there is a particular tile that you want, you buy it and ensure that you have adequate stock of it and don’t buy a tile that you’re going to run out of stock of, otherwise you’ll be in a horrible situation where the job’s incomplete. I would also consider using a “standard” “always in stock” tile to alleviate this problem.



Door and window hardware is another annoying area that involves a lot of time sometimes in trying to track down a particular item for instance, a hooded opening to the letterbox. There are a several good places around town such as “Handles Plus”, “Full Circle” and “Knobs & Knockers”. They are specialist hardware firms supplying door and window hardware to the industry. At the proper time, I take my client and the set of drawings down to Michael Fern at Handles Plus, and we work through the schedule and order the material such as it can be delivered to site or picked up by the builder in good time for the carpenter to fit off the doors and windows. I generally like to have door locks keyed alike so that you only end up with one key to the whole house. This obviously requires the existing lock cylinder to be taken down and matched to the new locks, or the new locks matched to the old lock. In a quality renovation, I think it’s important to get the right lock for the period. For instances, there’s a classic, fairly cheap Lockwood 101 lock that is very easily applied to doors, but really is a complete anachronism like possie drive screws, and there really is a purpose made lock for the period, and the door. There are a number of functions required, hold open, snib, lock, double lock etc., and these can be discussed with the specialist locksmiths.

20. Should We Live There?

This is a question that’s always asked and ideally in order to save money, it’s yes if it’s possible to live there. You need to discuss it and note it in the tender documents. Tell the tenderers, the client will be occupying the building whilst works are going on. However this question’s answered really by the extent of work. If it’s 50% of the existing house, well there is quite a strong argument to move out and really give the builder freedom to execute the works expeditiously. If the work is contained to one section, well then it’s probably ok to say and it can be properly quarantined off if there are young children on the site. However, if there are asthmatics in the house, it’s probably very wise to move out because building sites are notoriously dusty and noisy, and most often, they are just not very pleasant places to be. One of the features of the contract ought to be that it is a commitment not only in terms of cost and quality, but also time. In his tender, the builder should be required to nominate the time when he will complete the works. If for instance you have moved out and are renting a serviced apartment, the builder ought to become liable for any additional rent should he run over time. So you can quite happily sit there knowing that your rent is being paid by the builder and he can take as long as he likes, but he pays for it. And again it is important for the building designer or architect to be empowered to deduct your costs from his payments. This is a legal term called “liquidated and ascertained damages” and they must have actually been suffered and they must be ascertainable and not notional at all. You must have the cheque butts or rent book and receipts etc. in order to be able to prove to the architect or building designer that you have in fact expended those sums. The rate at which one can deduct “liquidated and ascertained damages” needs also to be expressed in the tender documents at the beginning so it becomes part of the conditions for tendering.



The rate must be a reasonable rate, it must be a market rate for renting of say a serviced apartment in the neighbourhood. It’s important to note that liquidated and ascertained damages are not a penalty as such. It really is just a mechanism to reimburse the client for suffering a financial loss.

21. What is acceptable?

Is the paintwork adequate? Is this bent door acceptable? Is the floor unevenness acceptable? Is the way the insulation has been put in the roof acceptable? This is where the experience of your building inspector, designer or architect comes into play. But also, this is where the choice of the builder becomes important because on occasions I’ve just stood on-site and looked at something and the builder’s come up beside me and said “Don’t worry, I’ll fix it.” I’ve not had to do a thing. I don’t have to write it down, it usually doesn’t require a formal notice. So the building designer or architect is your arbiter in this case of quality. I think it is probably appropriate here to distinguish between “inspection” and “supervision”. They are legal terms and they are different. Inspection is periodic and is done by the architect or building designer, and it is not constant. Supervision is constant, and the builder provides supervision, and the architect or designer provides inspection. It is an inspection to ensure they are general accord with that required by the documents. There is a certain amount of discretion here for improvement, innovation etc but generally, the contract should be quite specific and if it is adhered to, the inspector is quite within his rights to require the work to be re-done. The specification is important here because it notes the relevant Australian Standard, or SAA Code, which must be adhered to. For instance, the application of the plaster or the paint, or the brickwork, or the cement, or footings, or reinforcing are all governed by an SAA Code. These Codes set the standard to which the trades must adhere. They are a very valuable tool in ensuring quality. A good specification will also contain a list of all relevant Australian Standards pertaining to the works.

22. Who are the Good Guys and who are the Bad Guys?

I always say to my clients, they are “the good guys.” They should just keep themselves above any fracas, or any debate. They should let the architect be the “bad guy.” Clients should point out their concerns to the building designer or architect who then go off to bat for the client. If there are good relations on-site, there’s usually no problem. In this way the client can maintain a certain distance from the builder and not be seen as a knit-picker. I had a very interesting experience on a job which had a lot of curves in it and I came on looked at this curve and I said that’s got a flat spot. “No, no, no, it hasn’t”, said the builder. “Yes, it has”, I said. “Oh ok”.



So we got out the tape and sure enough, it had a half inch flat spot in it and I consequently checked all the others. This was the only one, thank God, and I was known as “flat spot” Tom from then on when I arrived on site.

23. How Often Should we Meet?

Initially, I suggest you meet weekly because things are starting to move and things are being closely looked at for the first time. Discrepancies are the first instalment. They need to be sorted quickly, because if it goes more than two weeks, that really starts to affect the pace of the job. Once a job starts humming along, you can cut it back to one every two weeks provided everything has been properly scheduled and audited. When a job is approaching completion, I find it useful to start issuing a “preliminary defects lists.” This is a list on an Excel Spreadsheet, trade-by-trade, which you can give to the builder such that he can sort it trade-by-trade or room-by-room, and it is the builder’s whip list to be issued to each particular trade. I find that trades communication on-site is often not good and if they’ve got a list to work to, they can pick up the list and work to it fairly quickly. This list should be part of the site notes, as it becomes a very useful tool to aid the completion of the works. It just helps communication and prompts trades to get on with their work. If their supervisor is not there, some tradesmen just sit around waiting and that’s not good. If they’ve got a list to work to, well then they can get on with it. Once “practical completion” is achieved, then this list becomes the “defects list” and is maintained up until the end of the defects liability period. No further defects can be added to the defects list once the date for completion of a defects liability period has passed.

24. Payments

Each month, the builder will submit a claim. Ideally it is set out in terms of each trade noting the contract amount set aside for each trade and a percentage completion of that trade and a numerical sum derived thereby. This trade breakdown is a very useful tool for certifiers, and it sets up where the money has been spent on site. If the Builder fails or the contract is determined, it can be re-started again with some semblance of order. In assessing each claim the building certifier will agree with the claim and certify it, or either up the claim or decrease the claim, depending on his assessment of the value of the work done to date. This is then totalled at the bottom, with the relevant retention sum taken out and the amount due is derived, and then of course, the GST is added and the certificate issued for the amount payable plus GST. This process continues for all the months of the job until practical completion is achieved. During the defects liability period, no further claims are presented.



25. The End of the Contract

Once all the defects have been satisfactorily remedied, the builder puts in a “final claim”. This totals up all the trade breakdowns, all the variations approved and this is presented together with the compliance certificates for the glazing, insulation, electrical wiring and the plumbing. These are issued by the various Trade organisations and certify that these trades parts of the works have been completed according to the current regulations and requirements. These are presented by the builder to the architect or certifier and become part of the necessary document tation to complete the contract. All parties go around the project and inspect, agree that all the items have been completed; the architect or building certifier then issues his final certificate. The “Final certificate” is a legal document which certifies that the contract is at an end.

26. Wrapping it up nicely.

I think it’s wise if the project has gone well, for the owner to write a letter to the builder thanking him for his efforts and his paperwork or whatever feature they want to accentuate, worthy workmanship or tidiness of the site, or whatever. It’s a very useful document to give to a builder for his future marketing.

27. Keeping the Documents

It is important to keep the contract documents in a safe place throughout the works, but also for a further seven years in case there are latent defects which have become manifest. When the contract is signed, I ensure that three copies are in fact filled out completely: the client/proprietor keeps one, the builder another, and the building designer/certifier keeps the third. These are also very useful documents to keep should there be subsequent additions and renovations to the house because the existing conditions drawing is a fundamental starting point for any new project. To have an architect’s or building designer’s drawing of the building as it was left is a great help in starting any subsequent project. Not only should “hard copy” be kept, but “soft copy” or “digital copy” as well. Digital copies can be in what is called “.pdf” format or better still “.dwg” format so that future Designers can open the drawings in their software



28. Photographs

Another little side activity will be the project photographs. Not only is it useful to have photographs at the beginning, but it is also useful to have photographs during the progress of the work and also at the completion of the work so that you can see the change that has been wrought throughout the progress of the contract.

29. Some other Questions:

Are Architects and Building Designers expensive ?

I would say not. You get what you pay for. As alluded to previously we are, by virtue of dealing with tailor made products and specifying a higher standard throughout, Architects projects can be made cheaper but the quality suffers.

E.g. The various paint specifications.

The then RAIA did some research and found that if a Project had The “Wow” Factor, buyers competed at Auction for it and regularly ended up paying 25% - 33% more than an ordinary renovation.

i.e. You got 2.5 to 3.3 times an Architect’s fee back at auction.

How long should it take ?

Generally, once a designer has been engaged, a month to agree what to do, perhaps one to two months to document a contract, one month to find a Builder and six to twelve months to build.

When is the best time to start ?

I have found it best to start just when the kids have gone back to school. It is wise to avoid the Christmas break if you can.

Do not create a pressure cooker situation requiring completion before Christmas. This is when mistakes happen, workmanship suffers and tempers get frayed.



Are “standards” rising ?

In a word…..yes. When I started out the granite bench top was the exception, now they are the norm.

Insulation requirements are more stringent, double glazing and ESD considerations are becoming mainstream.

Heating and cooling are more sophisticated and efficient.



A final note:

I repeat, lose any one of my “Four Pillars” and your project is a disaster. So, I hope you have found this helpful and I look forward to your feedback whatever it may be. Keep the friendships, preserve the marriage and do it again ! Good luck and “Happy Renovating”.



AbouttheAuthor

Tom Wilson is an Architect practicing in the Eastern Suburbs of Melbourne.

His Practice is a registered Association of Consulting Architects Practice.

A winner of two Boroondara Design Awards, Tom has over 48 years of experience.

He runs his own Architectural Practice specialising in “Period Homes”.

His website address is:

http://www.tomwilsonarchitect.com.au/

and he can be contacted at:

M. 0411 464 838

E. [email protected]

His Postal Address is:

P.O. Box 1233

HAWKSBURN VIC. 3142