Contract builders in Brisbane - seeking HELP

[grubar30]

Here's my story ---> I currently have an application with the Brisbane city council for a 3 x 4bdr, 3bth, 2 LUG, 3 level Townhouse development. The property is located in Nundah, Brisbane. I expect the DA to be approved within a couple of months (call me optimistic) and once approved will go straight for the BA, then start tendering.

Here's my problem --> I've approached a few small-time builders who do work (i.e small townhouse developments) in the area and inquired about getting some rough cost estimates, but they dont seem to want to know about it. They say "we dont do contract building" (which I know is B.S. because they were referred), or they show interest, receive my plans, but don't subsequently return my calls (the plans cant be that scary).....Now I know these guys are in demand and can afford to pick and choose, but I need a way in. It seems to definately be a case of who you know in this game, so if anyone has any contacts they'd like to share, I'd be most happy.

Btw, is the fact that I don't currently have an approved DA, a reason why buidlers won't bother investing a little time? Then again, I'm trying to do the right thing and give these guys as much grace period as possible, so they can fit my development into their schedules.......confused!


All comments welcome...

George

 

[Sailesh Channan]

I am a builder as will as a developer.

From a developers perspective you need prices to conduct your feasibilities and obtain finance.

However, as a builder it is difficult to give you prices without full working drawings including engineering. A builder has to send plans to various suppliers and sub contractors to come up with an accurate cost without this any price will be a guesstimate and full of contingencies which will mean that the price you get will be inflated.

You will find that the number of builders that build townhouses is limited and the lack of competition in a booming market will also mean higher construction costs.

 

[Muffinman]

Sailesh Channan is correct.

I'm a builder myself with more work then we can handle.
With out DA approval I doubt any builder could be bothered wasting his time because council always have to justify their jobs by making changes.
Plus they love to frustrate and be entertained by all of us having to burn more cash on them.

If a builder is willing to calculate costs for you he either is breaking into the industry , has no work for good reason or will double the price because he knows you are desperate.

I suggest just wait for DA approval and what should take a few months has taken me 14months and $100,000 for a $20,000 budget.

 

[grubar30]

Hey guys, thanks for the replies....I'm still struggling with this but am resigned to the fact that an approved BA might get me a better look in.

Muffinman, sorry to hear about your 14 month approval....believe it or not, I received my acknowledgemnt notice 2 weeks ago without an information request.....the big fella must have been looking after me!

I might touch base with you guys (if you dont mind) once I'm further down this road (i.e BA stage) to talk shop...

thanks once again for the comments....

 

[Qlds007]

On a separate note Grubar do you intend to run the scheme as a small scheme body corporate or will it be self managed ?

Guess it all depends of you intend to sell the properties off or retain them all.

 

[grubar30]

Hi QLD007,

Not sure yet....my town planner suggested I strata title all three for better value......does that negate the concept of having a Body Corporate?

At this stage, I plan on selling (flick and move to the next opportunity)....but my contigency is that if the sale prices don't end up meeting forecasts, then I'll hold - probably for 1 yr to take adv. of the CGT exemption.....I guess that's where you're coming from?

George

 

[Qlds007]

George

You are not required to have a separate BC where there is less than 5 in the block however in saying this it is always easier to sell them if they are Professional managed with a BC Manager.

Let me know if you need a hand on that front as i can refer you to a great BC Manager i have used on many ocassions such as these. They will deal with everything once the CMS has been sealed.

 

[tcocaro]

builders ignoring

I must first qualify my answer by saying I am very cynical by nature.

The reasons why builders wont be responding favorably are;

1. They think you are using them as free QS, if you wanted a costing you should pay a QS to do it (this is what the builders would be thinking)

2. Your in DA phase which means whether you like it or not there is no finish date which I builder can go by and no guarantee he gets the job in 6-8 months when you actually get BA or if the plans even look anything like they do now, or even if you sell the project DA approved.

In short from the builders perspective the only reason to respond now would be to "fluff" a cost based on rough per sqm costs only to get into your good books for a "chance" to build with you some-time in the future.

In short you need BA first before you can go to a builder for a cost. If your not prepared to pay for a builders bill of quantities then go for an elemental but you can pretty much do that your-self using per sqm rates.

More importantly you should ALREADY know the cost, how did you conduct the feasibility?

one final note, if you are so sure that DA will take just months then your probably under-developing, you mentioned 3 townhouses if you have a 650sqm block you could fit 4 townhouses (2x2 2x3 bedrooms) and get a much higher return. 3 townhouses 100+sqm each is what builders mostly push through because they cannot be stuffed with anything harder but as a developer (you) must push for ever last cent you can extract from a site.

Anyways i wish you the best in your development.

 

[grubar30]

as a developer (you) must push for ever last cent you can extract from a site.

Gee, I didn't you know that.


4 x 2? Many ways to skin a cat.

I do know one thing though, you don't buy a 60% LMR block with favourable local plan codes (11.5m build height for example), in a bees knees location (moreton bay & city views), only to turnaround and dump your standard 4 x 2's.

Interesting you should find some sort of correlation between a quick DA and that of maximising development potential. Here's a thought - maybe it helps if you submit a thorough and comprehensive application in the first place?

As my private town planner once told me (he worked 30+ years for the council btw) ---> "you can make this process as long as you like".

I do see your other points though.....pretty much confirms what I've been told so far.....