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0438 812 501 www.housebuildersbrisbane.com.au House Builders Brisbane What you see is what you get..... Having witnessed firsthand the pitfalls of ...

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Published by , 2016-03-23 20:09:03

House Builders Brisbane

0438 812 501 www.housebuildersbrisbane.com.au House Builders Brisbane What you see is what you get..... Having witnessed firsthand the pitfalls of ...

House Builders Brisbane

What you see is what you get................

Having witnessed firsthand the pitfalls of building under traditional building
contracts for many years, a group of Quality Builders and Building Designers began
to search for an alternative system that could be utilised in the residential
construction arena. A system that would ensure quality, consistency, predictability
and reduce or eliminate risk. Risk to all parties.

Working closely with some very skilled software developers a Unique Proprietary
System was created. That system is now being used by a number of Builders and
Building Designers throughout Queensland and these are the only Builders and
Building Designers that HBB will work with and recommend. The reason is simple; It
Works. For the client, for the builder and for the trades and suppliers.

And because the system works so well and all the parties involved from concept to
completion are using the same system the relationships between all the
stakeholders become partnership based. That is how we deliver great projects for
our clients.

At the heart of our Unique Proprietary System is the

“Guaranteed Maximum Price Construction Management Contract”

It’s so simple we wonder why no one in the residential construction industry has
taken it on before. But because we know the industry we know why they don’t. You
see the GMP CM Contract fully discloses every TRUE COSTING in relation to a
building project, including the entire builder’s fee being charged.

By lifting the veil on the costing process and uncovering the full extent of the
builder’s fees it was quickly realised that clients began to see the builder and the
designer as their partner when it came to delivering the project. The system ensures
the client knows where every dollar is going and there are no hidden costs or
surprises. Our system allows us to reduce our administration costs significantly and
this ultimately saves you money. Yes the system actually provides an incentive to all
parties to identify cost savings and to finish the project on time.

Clients who have worked with Builders and Building Designers using this system are
the ultimate measurement of it’s success. They just keep referring more and more
business to us. This tells us that we have genuinely achieved a breakthrough for our
industry.

0438 812 501 www.housebuildersbrisbane.com.au

House Builders Brisbane

The HBB Way.......

 The builder will partner with you whilst still being responsible for all the
duties of a normal builder.

 You get a system that complies with all relevant BSA legislation.
 You enjoy the same warranty and insurance protection as standard

contracts.
 You get a contract with all costs transparent – including what you pay the

builder.
 You have freedom to shop the marketplace for the best prices and choice of

finishes.
 Prices are locked into individual trade contracts/quotes.
 You pay trade rates without variation loadings – ever.
 You have a builder that acts as your manager to protect your interests.
 You enjoy consistent communication on job progress particularly with costs
 You benefit from formal management procedures designed to reduce the

likelihood of disputes.
 Your money works to maximum advantage because sub-contractors and

suppliers price themselves extra competitively to get your work as you pay
them direct – which means better cash flow for them.
 Your builder doesn’t profit by asking a sub-contractor to take shortcuts – in
fact, as the builder has nothing to gain by compromising the standard of
works, he is tougher on those standards.
 You see every supplier/contractor cost directly, with no margin/loading so
you know you’re getting maximum value every time.
 The builder, trades and suppliers are provided with incentive to finish on or
before time. There is no benefit to dragging it out.
 You will get a guaranteed maximum price, protecting your investment.

0438 812 501 www.housebuildersbrisbane.com.au

House Builders Brisbane

The Bad Old Days......

 The builder carries greater overheads under a standard contract – which you
pay for and puts you at risk.

 You won’t see the real costs. The builder hides these behind his “Quote”.
 Builders obtain the best prices from their suppliers and load a margin on

these items that they on-charge to the client. The incentive is not to reduce
the costs.
 Variations are seen in standard building contracts as being the “easy money”
by builders. Variation fees and loadings are often just a means of gouging.
 Variations are extremely common in the new home and renovation markets
and you cannot shop these variations around to ensure a fair price. These are
usually 20% of actual works amount plus admin fees and the builder can
exaggerate the actual cost of the works without you knowing. It is a recipe
for risk and conflict in every project.
 There is a risk that the builder may discount the quote to win the job, and
deliberately make up the difference with variation loadings and surcharges
that you have little control over.
 You, the owner, are at the mercy of the builder once the contract is signed.
 As the builder directly controls and pays sub-contractors there is the
possibility that standards of finish may be compromised to save the builder
money.
 There are many instances of builders becoming insolvent, risking your
investment.
 Traditional building contracts are structured so that the builder receives
most of the funds and his profit during the first 80% of the project. This
reduces incentives to complete on time. Builders are notoriously slow at
finishing a project because they lose interest and supervision on the project
begins to slip as they begin moving their resources to the next project.
 Managing defects is essentially a conflict driven process and can drag on for
months.

0438 812 501 www.housebuildersbrisbane.com.au


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