Although we are primarily a design + build business, if you already have plans then we’d still love to build for you. We have literally helped 100’s of “build only” clients achieve their dream home on time and to budget. We do, however, like to work a little differently to other builders on “build only” projects. Our preferred methodology is to act as your “preferred builder”.
Why Tendering Rarely Delivers a Great Outcome
If you have headed down the "design first - cost later" route then the standard methodology for obtaining a price for your build is to seek tenders from multiple builders once the plans are finished. In an ideal world, this should lead to you receiving comparable quotes, a competitive price and a job well done. However, this is rarely the outcome. Tendering is inherently faulted for these reasons:
Generally, a builder will have to tender on anywhere between three and six jobs to win one. The builder is therefore incapable of spending any more than the bare minimum on each tender. This means that the builder cannot give you the service you deserve. He's simply to exhausted to do so.
Rushed tendering builders will not go to the trouble of suggesting alternative material choices, construction methods or money saving changes to the plans. He certainly won’t seek multiple, competitive quotes from subcontractors. He simply hasn’t the time.
Nor has he the time to ensure that your project is fully specified. Under specification is the norm when builders receive plans from all but the top flight of architects. When something is not specified the time poor builder will include an allowance. That allowance may not cover the cost of the items that you actually want in your home. This results in disagreements after contracting.
The lowest price tender will invariably win the job. The problem with this is that a low price normally indicates:
a. A builder who is desperate for work;
b. A low quality of finish;
c. A mistake in the quoting;
d. A quote that features a large number of allowances that are far too low;
e. Or, a builder who has quoted low to win the job but who intends to rake back his profits by issuing variations after he is contracted.You will receive a “take it or leave it” price with no breakdown of costs. This means that you have no idea whether that price is a fair one.
A large number of projects end up being terminated as all the tenders are over-budget. The problem here is that no tendering builder is incentivised to put in the long hours to get you back to budget. Why? Because he only has a slim chance of winning the project after weeks of further unpaid work.
You may be lucky with a tender but to achieve that outcome you need to take a big gamble. There is a better way and that is working with us as your “preferred builder”.
A Preferred Builder Will Deliver a Better Result
Approximately 90% of the projects we work on as the “preferred builder” end up built. Why is that when up to 40% of jobs that follow the normal tender route never get built? Basically, it is because we have the luxury of time to service our clients, fully specify the build, keep the project on budget, highlight cost savings and get the job over the line and built.
This is how our “preferred builder” process works in reality:
After we receive your plans, we immediately estimate the overall cost of the project, match this to your budget and establish if any cost reductions are required.
If a reduction in cost is necessary, we identify whether that can be achieved by minor changes to the specifications; or whether a return to the drawing board is a necessity.
We will then identify potential cost savings for your consideration. This can save you tens of thousands of dollars.
We will also make sure that you understand your material and fit out choices by showing you actual examples.
We will work with you and your architect to make any necessary revisions to the design so that it falls within your budget.
Unlike tendering builders, we will seek out second and even third quotes from trusted subcontractors.
Ultimately, we will provide you with a detailed breakdown of costs – as opposed to a “take it or leave it” tender figure.
Other major benefits of working with us as your “preferred builder” are:
As we like to start working with you as early as possible, you will get to know us. This leads to a better relationship during the build. How early is early? We prefer to be engaged before you even buy the block and, definitely, before you start developing your plans.
As we prefer to start the process as early as possible, and 90% of our projects actually get built, we can schedule your job to start as soon as the permits are issued. No more waiting 18 months plus for a tendering builder to start.
We do not tie you in contractually to actually building with us at any point until we start building. Our feeling is that if we are playing our “preferred builders” role well then you will build with us.
All in all, our “preferred builder” clients feel that they are better informed about their costs, what alternatives are available, where they can save money, and, in general, they simply feel more comfortable and better informed about their build. So, if you already have plans, get in touch. We’d love to help you.
Estimates, estimates and more estimates
Isn’t money boring – until you don’t have enough of it? Well, we will literally bore the pants of you because we will estimate your project once we are engaged, again when we have the engineered drawings and just before we deliver our fixed price quote to you.
Why do we estimate so much (it certainly isn’t because we love it!)? We estimate so that our clients are not left sad, stressed and in possession of a lovely set of plans that will never come to fruition.
Our aim is to keep your budget in the spotlight at all times. At the end of the day, we want to build your project and that will only happen if we keep you on budget.
Fully Specified Builds = No Variations
No one likes variations after contracting – except disreputable builders. At Blue Gum, we believe in having our projects fully specified before we quote. That way there will be very few surprises after we start building.
For example, instead of having a provision for your kitchen joinery in the contract, we will already have introduced you to our joiner, you will have a joinery detail, 3D renders and an actual price.
This will be the same for every single item in your build – from the black hinges on your door to the cost of your freestanding bath. That way you know what you are paying for, and you won't get any unwanted surprises after contracting.
Fixed price contracts = No Cost Blow outs
We’ll let you into a little secret. No building contract is truly fixed price. There will always be certain items that are provisions.
At Blue Gum, our objective is to ensure that we are realistic in our assessment of the likely cost of those items.
We will also, by ensuring that every detail of the build is specified and priced, help you avoid variations after contracting. Our aim is to ensure that you receive as fixed a price as possible and, if necessary, make sure you know what contingency you will need in reserve.
How we build differently
We strongly believe in continuity of care during the building process. Each project has a leading hand allocated to manage the day-to-day activities on site. You will get to know your leading hand intimately. They are all highly experienced.
They have their own teams, and they stay on the job from the beginning until the end. A quality build is a given. We also employ all our carpenters directly and they are all trade qualified.
You won’t see any shoddy piece work or unqualified subbies on our sites. And, our construction manager, who oversees the leading hands, is a legend. What he doesn’t know about building literally is not worth knowing.
We also have an unapologetic approach to detail. It is almost frustrating sometimes, but the result is a thing of beauty.