20 Oct, 2014
Building a commercial property is a dream venture for many people, offering an excellent opportunity for:
The continuing low interest rates and weak Australian dollar show that now is an opportune time to invest. In fact, commercial property development is continuing to flourish in Australia, with figures published by Ai Group showing an expansion in new commercial developments in August 2014.
There are many people pursuing the dream of a lucrative commercial development. However, getting what you expect at the end of a build is not always guaranteed. Why is it that some people are dissatisfied with their finished build?
Stories abound of developers who have experienced budget blow-outs, work that spirals past the intended date of completion, project mismanagement, shoddy workmanship from the building contractor or other unforseen complications, that ultimately turn their dream build into a nightmare.
But why does this occur? These building nightmares are well publicised and something that people may see as a potential risk factor when undertaking a construction project.
This however does not have to be the case. By following some simple but important steps, out of control projects and disappointing finished builds can happily be ruled out.
So how can you avoid being disappointed with your build?
When done correctly a commercial build is an incredible investment, especially when purchased through your SMSF (seek professional advice on this).
However, people may find that their construction project has left them disappointed.
But what are the steps to building a property that will repay the hard work and effort you put in?
Beware of cowboy builders!
Before choosing a builder, do your research. Reputation is king- pick a builder with a long standing reputation for creating high quality builds.
The greatest indication of whether a builder delivers exceptional quality is in their completed work, so if possible speak to past clients to find out their experience and look at previous work done by the builder.
Check online and see if they have a well-established online presence, which shows past projects and client testimonials.
You can also check whether the builder is registered with the Building Commission.
By doing the necessary research, you can get a better understanding for whether the builder would be a good fit for your project.
Concept and design
What do you need from your build? Careful concept planning and informed design will determine whether the finished build meets your expectations.
Be realistic and balance your expectations with your limitations. In the concept stage, work with a builder who understands your needs and will meet your requirements in terms of both design and cost.
Project planning
Project planning is the key to any smoothly run build, which will simultaneously minimise the risk of any unexpected surprises.
Your builder should work with you to implement an effective project plan, which clearly outlines the schedule of works, the time-frame for completion, the resources needed and the overall project cost.
Communication and management
An efficient and experienced builder will be skilled in project management and will coordinate the various stages of the build, while effectively communicating with the various stakeholders involved in the project.
Agree to a timeline for completion
A well-planned and realistic time-frame is imperative to work being done efficiently.
Your builder should create an accurate and realistic project schedule that will allow for completion of work on time. Stay informed of project progression by communicating with your builder and receiving regular updates.
Stick to your budget
Many people think this is easier said than done. People are frequently disappointed by spiralling costs, which greatly reduce their return on investment.
This is often due to inaccurate or underestimated costs, which can skew the project from the outset. However, by working with a builder who can not only meet the client’s budget, but also deliver a high quality build, the dangers of a budget blow-out are removed.
An experienced and trustworthy builder will advise on realistic costs and prevent your project costs from ballooning.
To avoid the pitfalls of a disappointing finished build, follow these steps and make your commercial development project a success.
At Rapid Tilt, we employ our tilt-up construction technique, a method that is unmatched in terms of quality and speed of build. This is combined with dedicated project management, to ensure our work is done on time, on budget and to the highest standard.
Our pride in work and commitment to the highest quality builds ensures that we not only meet, but exceed, our clients’ expectations.
