Renovation Tip #5

Have a complete specification for the project ready and know exactly what you want from your builder

It is important that you know exactly what you want from your renovation project so the best result can be delivered, so it is vital that you have a complete specification plan.

This is where builders, architects and designers can look through your specification renovation plan and give you their expert advice or tell you what is feasible and not. It is also important that your specification renovation plan matches the budget you have set out, of course, it is problematic for you and your project if finance is an issue where the building project can be delayed and uncompleted.

Builders and designers can help you make adjustments to your plan if you think the project will go over budget, things like cutting material cost, finding another alternative for materials or labour, etc.

Although having a complete specification is essential, having the correct specification is key to eliminate or reduce unexpected problems.

While many houses get built without any major glitches, in some cases it can become a stressful experience laden with problems. There are a few key reasons for things going wrong.

These are:

• • Unrealistic expectations of the owner
• • Over-demand for services and materials leading to shortages and delays
• • Lack of communication and misunderstandings
• • Unscrupulousness or dishonesty (on either side).

Make sure you don’t cause problems for your builder by:
Failing to do what you’ve promised, for example, arranging the plumber to turn up on a certain day. Failing to pay on time. The builder shouldn’t have to wait for overdue progress payments, as they will be carrying the cost of the materials and wages.

Failing to make the final payment – some people hold on to the final retention payment for longer than necessary, even after everything has been signed off and faults rectified. This is unscrupulous and may be a breach of contract.

Misunderstanding the plans, specifications or contract documentation and making incorrect assumptions. It is difficult to visualise what the finished house will look like, but it is not the fault of the builder if at the end, you say, “that’s not what I expected” if everything is built properly to the specifications.

• • Buying materials for the job, without consulting the builder, that are cheaper than the quote for them in the contract documentation (so when there’s a problem with the product it leads to arguments as to who gets it fixed or replaced. Also the builder’s guarantee may not cover it).
• • Going into the project with the attitude that the builder and subcontractors will try to rip you off, without understanding the complexity of the building trade.
• • Having unrealistic expectations.

Communication plays a key role to your renovation project because the interaction you have with your builder and designer relates to the outcome of how your project will look and feel when it is completed.

It is important that you and your builder or designer have effective communication skills so that you can portray your vision of what you expect, also give specific concepts to them so they can fulfil your needs and wants for the project. The more detailed information you give to your builder and designer the better they can understand what it is you want so they deliver to you exactly what you expect. Like they say more is better than less.

It is also wise to choose a builder or designer that you are comfortable with, that their communication is aligned with your personal values – positive relationships leads to positive outcomes.

Deciding what you want
There are a number of things that you want in your renovation project. Here are a few things to think and consider:

• • What style of house do you want? (Traditional, modern, villa, cottage, etc.)
• • Open plan or many rooms?
• • Any other features – indoor or outdoor?
• • Where do you want your rooms?
• • Do you have children? And how much space do they require?
• • What sort of landscape do you want – how much privacy do you need?

What happens when changes to the plans or specified materials have to be made once work has started? Managing the variation process

Changes by the builder
In the specifications there will be detailed instructions about what products the builder is to install, for example, the brand of wall cladding. Sometimes the builder or one of the subcontractors may have to make a substitution because that brand wasn’t available when needed. You will want at least the equivalent in quality to be installed.

In your contract with the builder you should have conditions that prohibits the builder making

any variations or alterations to the contract without your consent or direct written instruction.

Be aware that a modification to the building consent may be required.

If the builder makes a substitution without your permission you may have a case for breach of contract under the Consumer Guarantees Act or mandatory warranties that apply to contracts entered into from 30 November 2004.

When you ask for changes
During the building process you might change your mind about something in the renovation plan. This might be at the suggestion of your builder or something you thought about later.

Talk to your designer, project manager or builder to help decide if the variation is really necessary and how much it will cost. It could require a new or rewritten building consent. Or it could turn out that it can’t be done anyway – it may be too far into the building process to start moving walls or inserting soundproofing products between floors. But you won’t know unless you ask, and let them justify to you why it cannot be done.

Be aware that changing your mind is likely to cost you money – ask for at least an estimate in writing of the cost before you agree to the variation. Additional cost does make a big difference on a renovation project.

Try to avoid these as much as possible as changes are likely you more money and time, depending on the scope of the change to the plan you may wish to get changes specified in writing and to record discussions and agreements – especially with cost.

Variation process
Variations should follow the process set out in the contract, i.e. get them in writing and include:

• • An itemised entitlement detailing the required variations
• • Agreement of the variation by your Building Consent Authority
• • A record of any discussions and negotiations
• • A record of what was agreed and any payments made
• • A summary of the adjustment against the original contract sum
• • The authorised instruction to carry out the variation.

As it is a variation of the main contract, it should be signed and dated by you and the builder or project manager.

Continue to Renovation Tip #6:

> Have proper building and renovation contracts in place