Has anybody built with either of these companies in recent years

Hi Yvonne, Haven’t built with them, but I assume it’s not GJs or Signature who are actually building, but the franchisees for them in your area. So you need to find out who that is, and get feedback on them, history of owner(s), track record, references from other customers etc. I suspect that the franchisee will in effect be ‘independent’ of the main company. So it might be useful to check the contractual relationship between the franchisor and franchisee, and more important between the franchisor and you (probably none). So what vetting does the franchisor do of its franchisees, and what help can you expect if things go wrong, and the franchisee does things wrong, or fails to finish the build? If the answer is none, then what are you getting for the fee (obviously passed on to you, one way or another) the franchisee has paid the franchisor. Other than a famous name and some TV ads, with feel good statements like biggest, most trusted, most reliable etc etc. Good luck with your build.

Hi Yvonne, We have built with GJ’s but not the Whangarei franchise. In summary, I would not trust GJ Gardners to build a dog kennel.

Hello Yvonne, I’ve built twice with GJs – once in Auckland in 2010 and once in Waikato in 2016, so not really recently. Good quality build. Depends a lot on the franchise. Comms sometimes not great between the franchise management and tradies. You have to be really clear and check they understand what you want. A good choice if you don’t mind paying premium price for good service. I’ve gone a different route for my most recent build using independent professionals and savings heaps. I’ll get one building company to assemble a kitset from Imagine Kit homes this time and have the bulder project manage, do the inspection side of it and I’ll save more using kitset materials and a single contractor to take care of the build. I may even have an independent foundations company because savings can be had using alternative foundations that meet code and pass BC. Good luck!

Hi Yvonne, I’m in the final stages of building with GJ Gardners, and overall, it’s been a good experience. However, we’ve encountered a couple of issues. I’d prefer to wait and see how they handle them before providing a full review. I’ll keep you posted once everything’s sorted.

Hi Yvonne. Steer clear of Signature Homes.

Hi Chris, how does one check the franchisor-franchisee contract? Without alienating a potentially acceptanle builder.. Thanks

Thanks for highlighting this Chris. As a non-franchise home builder who has been in business almost 20 years now, it’s incredibly frustrating losing builds to franchise builders who claim to have been operating for longer than us when in fact they’ve changed hands (usually through mismanagement and/or financial failure) multiple times, but prospective clients don’t do enough research to understand this or factor it in to their decision making process.

Hi Yvonne. Steer clear of Signature Homes.

Hi Sanjay, Of course they might not be willing to show you the actual document, but I see no reason why you cannot ask the franchisor head office in general terms how do they vet their franchisees (building experience and history of principals etc), and what responsibility they take for the financial soundness and competence of franchisee, and what they do in the event the franchisee has unacceptable performance of goes into liquidation. As I said before, I suspect they will either be unwilling to answer, or if they do it will be in very non-committal terms. Then you make up your mind what you’re getting in return for the well-known name on the letterhead. But at least forewarned is forearmed. If reasonable due diligence alienates a builder, then I would suggest he’s not potentially (or actually) acceptable anyway. I’ve said before, the building market could easily be entering a phase where, unlike it may have been before, builders need clients more than clients need builders. So if they push back against reasonable demands and questions find another one. Or maybe avoid the undoubted hassles of any build, and try to find a finished house you like.

Where did you build and with which franchise ?

Completely agree

Thanks to Chris-he’s a wonderful support for this forum. Just some addition to his comments regarding franchises, as rule the individual franchises are an independent, standalone business connected to the head franchises through a licence to use the brand but with no responsibility for failure back to head office if a franchise runs into problems. Needless to say, some franchisees are better businesspeople than others. As for the benefits, the common acceptance is a franchise gains access to the brand for marketing, plans the franchise holder has developed, and access to cheaper materials that help bring the cost of building down. Some very important things to do when going into a building contract include ensuring your contract is not written so as to favour the builder too much. Obviously fairness is important and there are some terrible clients too, but the Master Builders contract, for instance (hello GJs), is weighted towards the builder. Ensure you have good insurance, including third party builder insurance, so if your builder does go out of business you will be covered, make sure you have a Licensed Building Practitioner supervising your work, and make sure you get a copy of the Prescribed Checklist (this is mandatory for builders to give their clients and gives a checklist of specific informational builder needs to give you, including financial information. Read the http://www.buildibgguide.co.nz – there’s an abundance of excellent advice there.

Don’t build with a franchise builder. The head office “brand” gives you no more security than going with an independent who has longevity and slogs their guts out and knows what they’re doing

Hello everyone I am building two adjoining houses behind my old cottage at the street end, on a large section. The build is almost over except for remedial work like hot water not coming through, a toilet cistern not filling up). I am looking for advice on the following: My builder had the driveway included in the contract (as a ticked item in the Specifications document accompanying the contract). He also had Driveway as a PC sum in the contract. 1. Is that ok? I did not know then but now I think if it is included in the contract it should not be a PC sum. Am I correct? Also, he now says the whole of the PC sum on the contract needs to be paid as he has spent more than that amount. 2. Is there any use asking him to show invoices for the driveway construction now because I wouldn’t know when they are obtained? 3. I had earthworks also as an item included/ticked in the Specifications document of the contract. It was also mentioned as a PC sum. Is that correct or was I wrong in signing the contract in this way? 4. I have paid for all the earthwork separately and it has amounted to more than twice the PC sum considered. Should I have paid for all the earthwork? 5. Also, now the builder is saying that he had contracted to build only the two houses at the rear. So should I be paying for the driveway for the front half of the section? Is this ever done? I have paused paying some invoices and want the driveway charges sorted out as the others are more straightforward. After all this I will have the last 5% instalment invoice and all fees (LINZ, lawyers, 223, 224C, ccc and title and other fees) still to incur. I am feeling a bit stuck with the builder payments. The two new houses have passed final inspection and I have got them insured in my/trust name and have got tenants in one and imminent in the other. Would be grateful for any advice on the questions above. Sanjay

Hi Sanjay, This may be of more help to other readers but the time to get advice is before you sign a contract not near the end of a build. Without seeing your contract nobody here will be able to give you accurate advice and I’d go so far as to say you should take most of your advice from a good and experienced contract or construction lawyer. However, the following link has a good short explanation for PC sums, which may help you or others to read: https://buildingtoday.co.nz/2009/08/01/potentially-confusing-pc-sums-discussed/ The only thing I’d add is that you mention having ‘paused’ paying some invoices. Unfortunately, in the eyes of a building tribunal adjudicator this may have put you in the wrong regardless of whether or not your contract was unfair or misleading. There is a clearly defined mechanism for not paying a builders claim called a payment schedule. Here is a another useful link, but again I’d seek professional advice: https://buildingdisputestribunal.co.nz/adjudication/guides-and-resources/the-payment-regime/ If its any consolation driveways are often an issue and if you have got to the point of having two habitable or nearly habitable houses that have passed inspections you have done better than a lot of people embarking on a build in New Zealand.

Hi Sanjay, Your answer re driveway concrete makes it more clear, but still not sure whether you think 10mm or 30mm aggregate to be better. Also lots of other factors like access, inclusions (colour, shell etc), subgrade, reinforcement, finish (brushed, exposed agg etc) could affect price. I think best to get concrete layer to visit site and quote. Or you’re likely to get unexpected costs cropping up when it’s too late to argue (like before). Regarding one below, I agree with what Jane H said. You should have understood/sorted this out at Contract stage. I’ve written on this blog before suggesting the Contract is the first thing you should get sorted, before paying any money (or at least only minimal amounts, you can afford to write off to experience) for designs or anything. If you enter ctrl+F you’ll get a search box. If you enter things like PC, Provisional etc you find I’ve explained before the difference, and how they’re supposed to work. But Jane H’s link explains it quite well, the confusion that often occurs and how they’re often used incorrectly. Usually PC (Prime Cost) Sum is an amount for something like an appliance, carpets etc which is sure to be required, and where Builder puts amount for one he intends to use. But you have the option of choosing something more or less expensive, and paying accordingly. A Provisional Item is for something that may or may not be required (usually something like earthworks excavation or fill). Builder puts in (with your agreement) a reasonable guess at final cost. If not required you pay nothing. If required you pay what it costs. Whether you can demand invoices etc generally depends on the contract wording. So regarding your driveway, obviously you needed one, and presumably the area required. So normally the whole thing could have been priced at contract stage. But possibly some builders have a contract where the basic spec includes for a certain area that should generally be enough, but not enough for your case, and possibly very standard type with brushed finish plain concrete or something. So he ticked driveway for part, then put in a PC Sum so you could choose (and pay for) whatever extra area and standard you wanted. Not a totally unreasonable way of doing it, as long as all concerned understand how it works. Similarly a ticked item for quantity of Earthworks he normally included on all builds. Personally I would have made any extra earthworks a Provisional Item, if not certain it would be required. Because the amount of earthworks is something dictated by the design, ground levels and whether any unsuitable material etc has to be removed. So not something where you can ‘choose’ anything. It is what it is, and you have to pay for it. Of course you would hope all prices charged are reasonable for what was done. But often difficult to dispute if you haven’t tied things down at the beginning.

Hi Sanjay. You’re not building with A1 Homes Wellington are you?

@Jane H, thanks, helpful tip and link. I have only 5% last ‘stage payment’ to make from the Payment schedule. Appreciate that anyone advising would need to see the contract. And I had shown it to two lawyers one of whom I had to keep asking questions for him to go beyond a cursory reading so I went to the other one. I didn’t find them commenting much on the finer details. Wd you be able to say anything on some of my questions, ie, – Should an item like Earthworks or Driveway be ticked as included in the contract (which should mean within the contract value) and be added as a PC sum too. If yes is that PC sum then only to cover costs of any upgrades I add after contracting? – If the approved EPA plan shows a full driveway and the builder claims he is doing the driveway as per plan, can he then say he had contracted only for the two new houses behind the old one and so will pay for part of the driveway? It seems bizarre even to work out the parts of a driveway in this way. Many thanks. Sanjay

Hello Folk Can anyone tell me the cost of laying a concrete driveway with exposed finish in Auckland today? I am looking for the finest aggregate finish and a better/mid-range aggregate finish. There are sites which mention cost range but I don’t find dates of the sites last updated and, since I am overseas, difficult to talk to them although I will keep trying. Appreciate any advice.

Hi Sanjay, I assume you’re the same Sanjay who asked about PC Sums etc. In which case you’re certainly making life/building even harder by trying to do it while overseas. And even more so when, with respect, you seem to have very limited knowledge of building contracts, and how these things work. I can’t see why you can’t call concrete layers from overseas if you get the timing right, but you could always try emails, or presumably you have someone in NZ (your Project Manager?) to call them. But when you mention a difference in cost between ‘finest’ and ‘average’ quality you’re entering a very difficult area. I doubt that many of them would offer such differences, but if they did how would you define and measure it? Or do you just think you’ll know it when you see it, and hope the builder will agree if you say it’s not up to standard? I’ve worked on Government construction jobs where all such things were defined in great detail. But the result was an overall Specification that was 50mm thick. And even then there were disputes. I guess all concrete layers would say their work is perfectly fine for a driveway. Some would be telling the truth, some would not. Unfortunately when you’ve got 15-20 cubic metres of concrete driveway going off outside your house it’s too late to argue about it. Best bet is to find someone who’s done a job you like on another house, and pay what you think is a fair price.