Transparent to the Max
Being in construction all my life I having sold multiple products in the industry and dealt with many building companies throughout. I am disgusted with the amount of shoddy building work that is being performed in our industry and the attitudes towards customers. It is crippling our industry and reflecting badly on the good ones striving for best business practice. It is a minefield of stress and worry for most people building and/or renovating and getting the right fit as a provider is paramount plus its nearly always the biggest amount of monetary investment made in most peoples lives. The public need to do their due diligence and I mean do their due diligence. Point 1 – we have just completed a build addition and renovation and the two other providers were nearly $400K above us (yes, $400K) and we didn’t cut corners and have made good coin and thats because we have good process, a great team and we pick the right sustainable jobs to build our business. Building does have a right price point but cheap is not always the way to go. Cheap comes with a low quality finish. You need to tick off all the boxes for supply, communication, follow through, personalities and robust business ethics. Contract contract contract limiting the likes of variations or where there are to be variations a set margin added. Point 2 – People think they can manage a build. Some might but some are just plain kidding themselves, want to supply items but don’t realise the ramifications on delays, wrong product and then expect builders to sit and wait whilst not charging for time. This is unethical and not good business practice and any builder who is prepared to do this will not be in business in future and as such you have no warranty comeback. Point 3 – selecting an lbp does not get you the right supply partner. An lbp can be anyone that is a builder but hasn’t done roofing, hasn’t installed windows, hasn’t laid flooring, hasn’t done foundations, has never built a complete residential dwelling from ground up. And people are selecting a builder just because they are an lbp not knowing this. Did you know that most group home builders use contract builders in their businesses and those same contract builders hold the lbp licence for future issues, not the group home builder. Most of these group home builders pay low rates to their contractors and that is why we have so many shonky workmanship comments on this site. Point 4 – there are companies out there marketing renovation franchises specifically detailing they don’t want builders in the business. This is a major issue for NZ going forward and the overheads for any franchise company are huge with franchise fees you pay for a build starting around the 5% mark upwards and all that goes into head office coffers. All I can say is that our industry is amok with disreputable and greedy companies who are not there for a win/win but just to take your hard earned cash and ce la vie so this brings me to my final comment. Do your due diligence, ask them what builds they are currently doing (minimum of 5) ask for referrals you can physically visit and demand to go to the ones of your choosing. Do not take their offered selections. Go to some of their suppliers and ask them what the business is like to deal with and if they are current in trading terms. This will give you a good indication of who you are signing up with and give you some perspective on what they are like. Sales people from most build companies don’t know anything but basics in building and will promise you the earth to get you to sign up and make that deposit. Then you are a captured customer and on the path of no return when the build cost climbs and the variations kick in. Diligence is paramount people PARAMOUNT !!!