possible to hire builder to lock up stage for spec home?

[Hodge]

Hi every one,

Was wondering if anyone has ever hired a builder to build a spec home only up to lock up stage and finish the rest yourself?

Are there any disadvantages or things you need to be careful when doing this?

Would builders be interested in this or see it as a hassle?

Thanks in advance.

 

[Robbo2621]

Also keen to hear about this. Was just thinking about it today

 

[Scott No Mates]

Yes - just get the project home company to quote construction up to lock-up stage.

A word of warning - make sure that you know the schedule of inclusions - plasterboard/ceilings or studwork only? What extent are they going to cover with the plumbing? HWS? Waterproofing? External works - driveway, paving, grass? Air conditioning?

Ensure that the contract time is reduced to exclude the fixout.

 

[Hodge]

Thanks Scott, do you know what happens with occupancy certificate? Does the builder obtain or would that be up to me?

 

[Scott No Mates]

It is whatever you negotiate with the builder - they may wish to walk away when they achieve lock up - so the inspections required are: footing, prior to cladding the walls (one side exposed), inspection for waterproofing, occupancy. You can arrange the inspections post framing.

 

[Hodge]

Thanks Scott. Much appreciated.

 

[Nde]

Hi Hodge,

Just checking if you moved on with hiring a builder to lock up stage?
We are about to start negotiations with our builder and wanted to know if you found any good tips?

Thanks

 

[Hodge]

Hi Nde,

I found some builders weren't willing to quote unless they did all the stages. I think most of the profit is after lock up? Got a few quotes back but decided not to build for now.

However I crunched the numbers and certainly worked out cheaper for me this way.

 

[chank]

Hi Hodge

Would you mind elaborating if it was substantially or marginally cheaper to build up to lock up stage only? Also curious about people's experiences when problems do arise, whether there's disagreement between the builder and your own trades about who is responsible for the problem.

 

[Hodge]

Haven't built yet but trick is to hire the builder as a subcontractor. You will need to insure the building your self though.

I guess if there's trouble with his trades it falls back on the builder as it's his guys.

 

[oc1]

Haven't built yet but trick is to hire the builder as a subcontractor. You will need to insure the building your self though.

I guess if there's trouble with his trades it falls back on the builder as it's his guys.

You're guessing wrong there.

 

[Hodge]

Actually oc your right as the builder is only a subcontractor.

Oc have you ever built up to lock up for a client or would you?

 

[oc1]

Actually oc your right as the builder is only a subcontractor.

Oc have you ever built up to lock up for a client or would you?

Your insurance so you're responsible.

Builders would love to build only to lock up. I'm strictly a developer these days.

 

[Hodge]

Every builder i ask won't build up to lock up. Perhaps most of the fat is after lock up?

Oc wouldn't it be better to be a builder and developer? Otherwise you'll have to fork out more going through a builder (construction will cost you an extra 20%+) I guess less headaches for you and insurance / defects falls back on the builder.

 

[oc1]

Every builder i ask won't build up to lock up. Perhaps most of the fat is after lock up?

Oc wouldn't it be better to be a builder and developer? Otherwise you'll have to fork out more going through a builder (construction will cost you an extra 20%+) I guess less headaches for you and insurance / defects falls back on the builder.

It's better as your costs are lower. However, bulk of the profits are generally from the developing side. Less headaches, no insurance to worry about and you get more time for other things in life.

 

[Hodge]

Thanks oc, that's good to know