After you completed the list of your potential contractors, next is to select your top picks.
Again, we will be assuming that your project is a common mid-cost residence probably ranging from 2M to 6M pesos. Cases might be different on higher or lower cost projects. I am also assuming that projects worth 6M up already is worth hiring a Construction Manager and he is the one handling or assisting the OWNER in dealing with the contractors.
According to what you found out on your initial gathering of infos, give more points to contractors with a good office and warehouse, has proper business documents, and has client references. Narrow down your pick into top 3-5.
Schedule a meeting with these contractors. It is recommended that you are the one who goes to their office since contractors might not accept your invitation if they feel that they have a very little chance of getting the project. They actually know if a Client is just soliciting information from them. Also, another advantage is, you can see and feel how the contractor treats his client and he will also feel that you are serious in considering him thus making him give you further information you need. This will probably be your second visit to their office.
Things to ask on your initial meeting with a contractor:
1. How many on-going projects they have. Actually, the lesser on-going projects they have, the more advantageous to you. Simply because, you don't share attention with too many projects. Chances are, your project will have the most out of the contractor's resources. Although, contractors tend to adjust as the number of their simultaneous projects increases.
2. Ask for reference project. If your project is a 2-storey residential with floor area of more or less 300sqm, ask the contractor of specific finished project with the same description as yours. If he is in construction industry for several years, he should have gotten similar project as yours before. This is to prove that he already has the experience and the expertise perfectly fit for your project.
3. Ask for basic contract terms and conditions. Some items that you should clarify are the following:
a. Down payment. For these type of project, down payment usually range from 20-30%. Also, it is important to request a Guarantee Bond equivalent to the down payment. This is in case something goes wrong and the contractor abandoned the project before it even started, you can claim back your down payment from the insurance company. Just make sure that the insurance company is reputable.
b. Construction and Surety Bond. Aside from the Guarantee Bond, it is important also to have these so that you will be assured at any point during the construction period.
c. Duration of Construction. This is for you to know how long they can finish your project. Also, this will help you manage your cash flow.
d. Mode of Payment. The best mode of payment for contractors would be through Progress Billing with pro-rated down payment and retention.(We will discuss this further on my next articles)
e. Excluded items. Although you are probably dealing with a General Contractor, there are still items that you will prefer to be excluded in the contract. This is because these items are owner-preference dependent. And/or for you to save on overhead charges if included in the contract.
4. Before you meet with them, prepare a set of blueprints and a copy of the Material Specifications prepared by your architect/designer. You will be giving each contractor a copy of these to be their basis of the estimates/quotation you will be asking them. If possible, give them also a standard bid form. You can ask your architect/designer or CM to make this. This is for apple to apple comparison of bids.
Expect that they will be asking further question upon reviewing the plans. If you can not answer their questions, or the questions are too technical for you, you will have to forward these to your architect/designer. Even if only one contractor asked a question give your answers also to the other contractors. This is to keep them aligned and maintain a good cost comparison. In the architect's office, these are called bid bulletins.
Estimates usually takes a week or two to finish. If you are not in a rush, you can set the deadline of submission of bids 2 weeks after transmitting the bid documents to them.
For these types of project, a Closed Bid is usually the way to go. This means that they will be submitting their bids with their best price in an enclosed envelope and it is up to the client to decide on whom the project will be awarded.
Showing posts with label House. Show all posts
Showing posts with label House. Show all posts
Tuesday, September 30, 2014
Saturday, September 13, 2014
Contractor through the Architect
The Architect can actually directly recommend a contractor. But for the purpose of cost comparison and counter checking of estimates, several contractors are invited to bid by the architect. This is to show the client that he has options to choose. The OWNER can even recommend his bet contractor to participate in the bidding. You will not have to worry of finding and dealing with contractors since the architect will be the one handling the bidding.
After the project is awarded to the winning bidder, the setup or situation will most likely be the same as the previous setup. Basically the same advantages and disadvantages.
Some architectural firms are offering their in-house construction management where-in, they can assign a full time project architect that will monitor the contractor and manage progress of construction. You will then be paying monthly charges for this.
The following are in addition to the advantages and disadvantages mentioned in the previous setup:
ADVANTAGES:
1. You can request your Architect to do regular inspection or at least do checking on construction milestone. He can then help you in evaluating and advise you if your contractor's accomplishment claims are substantial or not. He or his representative can also do random material checking to make sure that the contractor is following the prepared specifications and not using substandard materials.
2. You can seek design related advise during construction. If you are in doubt of a certain detail or you promptly want to change something, you can directly tell the matter to the project architect. Replies would probably be faster and will not compromise construction schedule.
3. Because the contractor is recommended by the architect, there is a very good chance that the contractor is competent and reliable. He must have been proven his reputation already to the architect in his previous projects. So you will have less worries in the contractor's credibility.
4. You can expect that the contractor will also perform well because if not, the recommending architect might not give him projects anymore in the future.
5. Faster response on design revisions since the project architect has direct contact to the firm.
DISADVANTAGES:
1. You will pay extra cost for the construction management services of the Architect.
2. If the architect is the one checking the contractor, who is then checking the architect? We can not be 100% sure that the project architect can mange correctly and/or efficiently all the construction issues in the project. Often times, they tend to be bias and always thinks that everything should be in the architect's favor.
3. Sometimes, project architects tend to be too strict that even causes delays in schedule. Example, if a material in the specification is not available anymore or very hard to find, contractors find it hard to seek approval of alternative brands or specifications.
4. Contractor-Designer, conflict or connivance. Although this rarely happen nowadays, still problems like these may arise anytime during construction.
Engaging your architect to do management work will protect you from possible abuse by the contractor but will cost you additional expenses.
After the project is awarded to the winning bidder, the setup or situation will most likely be the same as the previous setup. Basically the same advantages and disadvantages.
Some architectural firms are offering their in-house construction management where-in, they can assign a full time project architect that will monitor the contractor and manage progress of construction. You will then be paying monthly charges for this.
The following are in addition to the advantages and disadvantages mentioned in the previous setup:
ADVANTAGES:
1. You can request your Architect to do regular inspection or at least do checking on construction milestone. He can then help you in evaluating and advise you if your contractor's accomplishment claims are substantial or not. He or his representative can also do random material checking to make sure that the contractor is following the prepared specifications and not using substandard materials.
2. You can seek design related advise during construction. If you are in doubt of a certain detail or you promptly want to change something, you can directly tell the matter to the project architect. Replies would probably be faster and will not compromise construction schedule.
3. Because the contractor is recommended by the architect, there is a very good chance that the contractor is competent and reliable. He must have been proven his reputation already to the architect in his previous projects. So you will have less worries in the contractor's credibility.
4. You can expect that the contractor will also perform well because if not, the recommending architect might not give him projects anymore in the future.
5. Faster response on design revisions since the project architect has direct contact to the firm.
DISADVANTAGES:
1. You will pay extra cost for the construction management services of the Architect.
2. If the architect is the one checking the contractor, who is then checking the architect? We can not be 100% sure that the project architect can mange correctly and/or efficiently all the construction issues in the project. Often times, they tend to be bias and always thinks that everything should be in the architect's favor.
3. Sometimes, project architects tend to be too strict that even causes delays in schedule. Example, if a material in the specification is not available anymore or very hard to find, contractors find it hard to seek approval of alternative brands or specifications.
4. Contractor-Designer, conflict or connivance. Although this rarely happen nowadays, still problems like these may arise anytime during construction.
Engaging your architect to do management work will protect you from possible abuse by the contractor but will cost you additional expenses.
Wednesday, September 10, 2014
Direct to Contractor
Again, assuming that you already have your plans prepared and you've found a good and reputable contractor, we will proceed on the next construction set-up which is Direct to Contractor. Here are some notable advantages and disadvantages of this set-up.
ADVANTAGES:
1. You can better plan your expenses because you already have a target cost for the construction works unlike in the previous setup, where in you continue to spend money until the project is finished. You will only know the cost of the project after it is completed. You only pay for the monthly accomplishment of the contractor meaning you only pay for the items that have been finished within the billing period
2. You don't need to engage yourself in the construction site since everything will be taken care by your contractor.
3. You will not be liable of any accident that might happen during the construction period
4. You will not have any problem regarding labor issues or workers' demands. You don't have to go look for workers by yourself since your contractor will be the one to manage all labor works and all issues related to manpower management.
5. You don't need to invest for construction equipment, power tools, and form works. A construction firm usually has these.
6. You wouldn't need to worry on the leg works for the legal documents regarding the project. Processing of permits and other documents are commonly part of the contract including all coordination works needed until the project is finished.
7. You don't have to worry on sourcing and buying of materials. Also, you will not worry of wastage, pilferage and warehousing since these are all part of the contractor's responsibilities.
8. You have a fixed schedule. If you agreed to finish the project in 6 months, the contractor should deliver the project to you in 6 months unless there are acceptable delays as stipulated in your contract. Otherwise, you can impose penalty charges on the delay of turnover.
9. If you have questions, expect that you can have professional answers and advises since most qualified contractors are professionals.
10. Warranty. All the works done by the contractor has 6 months to a year warranty. They will repair it with no extra cost from you.
11. You can request for as-built plans and other construction documentation that you can use as reference in future repairs, renovation or troubleshooting.
12. Contractors normally deploy at least 1 full time construction supervisor so that the project can be monitored and built accordingly.
DISADVANTAGES:
1. Higher cost. Because of mark-up and overhead charges, the net contract cost is surprisingly high if you will compare on direct cost estimates by informal contractors.
2. Any changes or additional works you want to impose during construction will be charged separately. These are called Change Orders or Extra Work Orders. Including item of works that you forgot to include in the scope of works. Although, most contractors are willing to charge no extra cost if the item you are requesting are just too minimal compared to the total contract cost. I actually don't fully consider this as a disadvantage because for me, it is just fair to charge for any additional works done which are not included in the signed agreement.
3. Unless you hired a Construction Manager or Inspector, it will be hard to check if the contractor is faithful in doing his construction works. It will be hard to monitor and check if all the materials the contractor is using are according to the prepared specifications and in acceptable quality standards.
4. If not monitored properly, contractors tend to speedup the construction but sacrifices the quality of workmanship.
5. Unless you hired a Construction Manager, it would be hard for you to evaluate the contractor's monthly accomplishment. unless, you know construction also. But again, you can ask questions if you have doubts or you can't understand the billing.
ADVANTAGES:
1. You can better plan your expenses because you already have a target cost for the construction works unlike in the previous setup, where in you continue to spend money until the project is finished. You will only know the cost of the project after it is completed. You only pay for the monthly accomplishment of the contractor meaning you only pay for the items that have been finished within the billing period
2. You don't need to engage yourself in the construction site since everything will be taken care by your contractor.
3. You will not be liable of any accident that might happen during the construction period
4. You will not have any problem regarding labor issues or workers' demands. You don't have to go look for workers by yourself since your contractor will be the one to manage all labor works and all issues related to manpower management.
5. You don't need to invest for construction equipment, power tools, and form works. A construction firm usually has these.
6. You wouldn't need to worry on the leg works for the legal documents regarding the project. Processing of permits and other documents are commonly part of the contract including all coordination works needed until the project is finished.
7. You don't have to worry on sourcing and buying of materials. Also, you will not worry of wastage, pilferage and warehousing since these are all part of the contractor's responsibilities.
8. You have a fixed schedule. If you agreed to finish the project in 6 months, the contractor should deliver the project to you in 6 months unless there are acceptable delays as stipulated in your contract. Otherwise, you can impose penalty charges on the delay of turnover.
9. If you have questions, expect that you can have professional answers and advises since most qualified contractors are professionals.
10. Warranty. All the works done by the contractor has 6 months to a year warranty. They will repair it with no extra cost from you.
11. You can request for as-built plans and other construction documentation that you can use as reference in future repairs, renovation or troubleshooting.
12. Contractors normally deploy at least 1 full time construction supervisor so that the project can be monitored and built accordingly.
DISADVANTAGES:
1. Higher cost. Because of mark-up and overhead charges, the net contract cost is surprisingly high if you will compare on direct cost estimates by informal contractors.
2. Any changes or additional works you want to impose during construction will be charged separately. These are called Change Orders or Extra Work Orders. Including item of works that you forgot to include in the scope of works. Although, most contractors are willing to charge no extra cost if the item you are requesting are just too minimal compared to the total contract cost. I actually don't fully consider this as a disadvantage because for me, it is just fair to charge for any additional works done which are not included in the signed agreement.
3. Unless you hired a Construction Manager or Inspector, it will be hard to check if the contractor is faithful in doing his construction works. It will be hard to monitor and check if all the materials the contractor is using are according to the prepared specifications and in acceptable quality standards.
4. If not monitored properly, contractors tend to speedup the construction but sacrifices the quality of workmanship.
5. Unless you hired a Construction Manager, it would be hard for you to evaluate the contractor's monthly accomplishment. unless, you know construction also. But again, you can ask questions if you have doubts or you can't understand the billing.
Contractor's In-house Design vs Architectural Firm's Design
Before we proceed on the next set-up, it is important that you first understand the difference between designs from an Architectural firm and designs by in-house designer of a Construction firm.
Many contractors nowadays already have in-house designers. So you can actually have the contractor make the design for you. But, you should be aware of the following;
1. When it comes to design expertise, design firms usually produces better designs than a contractor's in-house designer. Simply because the firm has a wider range of design resources, the firm allots more time in research and design improvement to keep them in trend and competent in all aspects of design. They already have a library of their design information, style evolution and compilation of reliable design solutions. They even have wider design exposure including in international design trends.
2. In-house designers are usually contractor-inclined. A design firm has the experience in dealing with their clients. They can easily understand the clients preferences according to their lifestyle and social status. In-house designers are usually young architects who knows architecture in theory but still lacks the experience in understanding their client since they rely mostly on their experience as a contractor and not as a designer. They focus more on constructing the house rather than understanding how the design works best to satisfy the needs of the client. Sure they can produce good designs, but designs produced by firms are probably better.
3. Even if the contractor tells you that they will be giving you the design for free, it may not be actually free at all. The charge may be indirectly included in the contract bid.
4. Drawing quality, accuracy and completeness is strict in every architectural firm. They make sure that the details are complete and precise. In house designers on the other hand focuses only on the drawing requirements and thinks that other drawings can be made later as the construction progresses.
5. And of course, if your house is designed by a known architect, you can brag about it! And of course, you will spend more since you will be paying design services separately.
I've stated the above points because you might be asking why you will need the services of a design firm if contractors can already prepare designs.
Many contractors nowadays already have in-house designers. So you can actually have the contractor make the design for you. But, you should be aware of the following;
1. When it comes to design expertise, design firms usually produces better designs than a contractor's in-house designer. Simply because the firm has a wider range of design resources, the firm allots more time in research and design improvement to keep them in trend and competent in all aspects of design. They already have a library of their design information, style evolution and compilation of reliable design solutions. They even have wider design exposure including in international design trends.
2. In-house designers are usually contractor-inclined. A design firm has the experience in dealing with their clients. They can easily understand the clients preferences according to their lifestyle and social status. In-house designers are usually young architects who knows architecture in theory but still lacks the experience in understanding their client since they rely mostly on their experience as a contractor and not as a designer. They focus more on constructing the house rather than understanding how the design works best to satisfy the needs of the client. Sure they can produce good designs, but designs produced by firms are probably better.
3. Even if the contractor tells you that they will be giving you the design for free, it may not be actually free at all. The charge may be indirectly included in the contract bid.
4. Drawing quality, accuracy and completeness is strict in every architectural firm. They make sure that the details are complete and precise. In house designers on the other hand focuses only on the drawing requirements and thinks that other drawings can be made later as the construction progresses.
5. And of course, if your house is designed by a known architect, you can brag about it! And of course, you will spend more since you will be paying design services separately.
I've stated the above points because you might be asking why you will need the services of a design firm if contractors can already prepare designs.
Friday, September 5, 2014
Construction Professionals
In my previous post "An Overview", my aim is for non-technical people to understand the roles of individuals in construction. But the question that follows is "Who's who?"
Note that this article will only focus on Construction in general.
FIELDS IN THE BUILDING INDUSTRY
1. Design - Professionals in this field are the ones conceptualizing and preparing the plans. Design is composed of Architectural, Structural, Electrical, Plumbing, Mechanical, and Specialized Allied (Interior, Acoustics, Lighting, etc.)
An Architectural design firm is usually headed by the principal architect. The firm is composed of architects, engineers, draftsmen(now CAD operators and 3D Renderers), Architectural design firms usually has consultants. They are the designers of the other trades mentioned above. They are not directly part of the firm but merely Partners in the business. A firm may actually have several consultants on each field.
Professionals of each trade:
Architectural - Architect, Interior Designer, Landscape Architect
Structural - Civil Engineer, Structural Engineer
Electrical - Registered Electrical Engineer, Professional Electrical Engineer, Registered Master Electrician
Plumbing - Sanitary Engineer, Registered Master Plumber
Mechanical - Mechanical Engineer, HVAC Engineer
Specialized Allied - Interior Designer, Interior Decorator, Acoustic Engineer, etc.
2. Contractor - Mostly composed of Engineers but there are some architects on board also. The contractor is the one in the site doing the construction works. Contractor or constructor has classes. This gauges their capability to handle size and complexity of a project. Contractors of multi-storey buildings should be a Tripple-A General Contractor. For residential projects, even class C or D are qualified depending on their performance.
Sub-contractors are usually hired by the General Contractor for a specific work in the construction. This can be Electrical works or Plumbing works, etc. Subcontractors are also considered as standalone contractors. They are only called sub-contractors if they are under the General contractor and does not have direct contract with the client.
3. Project/Construction Management - The Construction Manager is considered as the OWNER's representative, This can also be composed of a team of professionals depending on the scale and complexity of a project. In most residential and small commercial projects, there is usually one full-time construction manager but he is assisted by other trade consultants as needed. They are the ones managing the project, setting and monitoring of the schedule, checking of the materials and contractor's workmanship quality, review of the plans, contracts and other documents and coordinates with the Designer as necessary, making sure also that the plans are strictly implemented. They are also the ones assisting the OWNER of his responsibilities as well. As I've mentioned before, his main duty is to protect the OWNER's interest. He makes sure that the Contractor is doing his job faithfully and evaluates the accomplishments for payment. He fills up the owner's lack of technical knowledge to avoid being abused by the contractor. A construction manager can be an architect or engineer with years of experience in the industry.
4. Product Development and Sales - Some engineers chose the path of specializing in a specific construction material. Instead of involving directly in construction, they develop materials and services for use in buildings.
5. Government Service - Engineers, architects working in DPWH and other related government institution. Professionals in the office of the Building official and City Engineer and City planning and development.
6. Maintenance and Administrative - Often times, as a new building is completed, the OWNER absorbs one of the Construction Managers to be his Building Administrator. This is to take advantage of his knowledge on the construction history of the building. There are also new firms today that offer maintenance works only.
Construction is actually broader. But I believe the above explains the basics.
The question next is who to contact first if you want to build your house? I will be discussing this later. It is important that the CLIENT first understand the different construction setup. Please read my next post regarding this.
Note that this article will only focus on Construction in general.
FIELDS IN THE BUILDING INDUSTRY
1. Design - Professionals in this field are the ones conceptualizing and preparing the plans. Design is composed of Architectural, Structural, Electrical, Plumbing, Mechanical, and Specialized Allied (Interior, Acoustics, Lighting, etc.)
An Architectural design firm is usually headed by the principal architect. The firm is composed of architects, engineers, draftsmen(now CAD operators and 3D Renderers), Architectural design firms usually has consultants. They are the designers of the other trades mentioned above. They are not directly part of the firm but merely Partners in the business. A firm may actually have several consultants on each field.
Professionals of each trade:
Architectural - Architect, Interior Designer, Landscape Architect
Structural - Civil Engineer, Structural Engineer
Electrical - Registered Electrical Engineer, Professional Electrical Engineer, Registered Master Electrician
Plumbing - Sanitary Engineer, Registered Master Plumber
Mechanical - Mechanical Engineer, HVAC Engineer
Specialized Allied - Interior Designer, Interior Decorator, Acoustic Engineer, etc.
2. Contractor - Mostly composed of Engineers but there are some architects on board also. The contractor is the one in the site doing the construction works. Contractor or constructor has classes. This gauges their capability to handle size and complexity of a project. Contractors of multi-storey buildings should be a Tripple-A General Contractor. For residential projects, even class C or D are qualified depending on their performance.
Sub-contractors are usually hired by the General Contractor for a specific work in the construction. This can be Electrical works or Plumbing works, etc. Subcontractors are also considered as standalone contractors. They are only called sub-contractors if they are under the General contractor and does not have direct contract with the client.
3. Project/Construction Management - The Construction Manager is considered as the OWNER's representative, This can also be composed of a team of professionals depending on the scale and complexity of a project. In most residential and small commercial projects, there is usually one full-time construction manager but he is assisted by other trade consultants as needed. They are the ones managing the project, setting and monitoring of the schedule, checking of the materials and contractor's workmanship quality, review of the plans, contracts and other documents and coordinates with the Designer as necessary, making sure also that the plans are strictly implemented. They are also the ones assisting the OWNER of his responsibilities as well. As I've mentioned before, his main duty is to protect the OWNER's interest. He makes sure that the Contractor is doing his job faithfully and evaluates the accomplishments for payment. He fills up the owner's lack of technical knowledge to avoid being abused by the contractor. A construction manager can be an architect or engineer with years of experience in the industry.
4. Product Development and Sales - Some engineers chose the path of specializing in a specific construction material. Instead of involving directly in construction, they develop materials and services for use in buildings.
5. Government Service - Engineers, architects working in DPWH and other related government institution. Professionals in the office of the Building official and City Engineer and City planning and development.
6. Maintenance and Administrative - Often times, as a new building is completed, the OWNER absorbs one of the Construction Managers to be his Building Administrator. This is to take advantage of his knowledge on the construction history of the building. There are also new firms today that offer maintenance works only.
Construction is actually broader. But I believe the above explains the basics.
The question next is who to contact first if you want to build your house? I will be discussing this later. It is important that the CLIENT first understand the different construction setup. Please read my next post regarding this.
Monday, September 1, 2014
Buying or Building a House
BUYING A HOUSE,
I'm sure you've encountered some agents in the malls giving brochures, pamphlets, etc of a ready-to-occupy houses located in a newly developed subdivisions in nearby provinces. Some model houses are tagged with an attractive price while boasting the community amenities.
The Good.
(1) Units can be occupied right away after you complied with the requirements and agreed with the terms and conditions. You don't have to wait for several months of construction. You do not have to worry about the hassle of dealing with the contractors/workers. (Although, some setup are just showing you a model house then construct your house after you pay the down payment)
(2) Units are payable in monthly basis and/or can be loaned thru Bank or Pag-ibig fund.
(3) You get to see the actual unit before you get it. Others are even offering optional components or variations. You don't need to imagine the actual sizes of the spaces.
The Bad.
(1) Since the unit is pre-built, the quality is hard to assure. Most defects are not noticeable in the first few years of the house. Though some projects constructed by reputable developers are of considerable quality. If you are buying a second hand unit, chances are there are already repairs made that you probably don't know that may become a problem in the future.
(2) Cost is probably high. The Agents/Brokers will have his commissions. The developer should have its profit. The General contractor should have its profit. The Subcontractor should have its profit. The workers should also have its profit. Subcontracting setup is even up to 3rd-4th pass.
Although some developers claim that the construction cost is low because they built the houses in bulk.
(3) You have to live with the design. Otherwise, you'll spend more on renovation works. If you're not that particular on the place you live, then everything might be just fine with you.
For those mid earning employees who want to have their own house as soon as possible, this is the most popular choice. It's not that bad at all. But there could be better with the same value of investment.
BUILDING A HOUSE,
To some of us, building a house is an enjoyable process. At planning stage, they get excited thinking everything they dreamed of to be done specifically according to their preferences. This is of course assuming that they have found a good designer and contractor. But to many of us, we are afraid of this process. Especially if this is the first time we will be doing this.
The Good.
(1) The house is designed the way you want it. From planning, you get the chance to consider your lifestyle. You decide on where to put up the spaces and what are the spaces you need. You decide on what materials to use. Options are almost limitless.
(2) You can see the progress of Construction. You can see and check the materials and structural to make sure of the strength and durability. You have the chance to make last minute revisions, the moment you see something is not according to what you perceive.
(3) You can work out your budget without compromising your preference. With the help of the engineer, you can plan your cash flow. You can then have the option of by-phase construction where in by proper scheduling, wastage can be minimized due to project halt or delay. You can even set priorities so you may choose to finish certain portion and live with it while other portions are still in progress.
(4) The Budget can also be loaned in Bank or Pag-ibig fund.
(5) You will know your house very well. You can also require your contractor an As-built plan so you'll have reference if you need to troubleshoot anything like electrical and plumbing system.
The Bad.
(1) You can not move-in immediately. You will have to wait till the construction is finished or portion of it is already livable. It might take you at least 3 months to a year to construct and move-in.
(2) You need to involve yourself in every concern during the construction period. It consumes your time. Although, you will be advised and assisted by the designer and the contractor, you will have to make so many decisions. If you find this enjoyable, then its a good rather than a bad.
(3) You will need to pay for construction documents, bonds and taxes. You have to pay your designers for the plans and documents they will be preparing as well as for the signs and seals as required by the city building official. You might also need to pay for construction bonds, contractors all risk insurance (CARI), processing of permits, fire safety, etc. (Although, you may opt to let your contractor do these for you)
Other worse things that could happen;
(1) You have a poor concept of design and space. You just found out that it is not what you want after the building is done.
(2) You engaged with bogus or incompetent contractor. After you gave the downpayment, the contractor is nowhere to be found. Or the contractor's skills did not meet the quality you want. Or the contractor did not finish the project because of some reason that maybe your fault or his fault.
(3) You always decide late or changes your mind every now and then during the construction period.
The project is delayed because they are always waiting for your decision.
(4) Your suppliers caused delays on your project. Or you did not pay on time, that causes the delay.
(5) You ran out of budget in a compromising stage of construction. (Although, this will less likely happen if your contractor prepared a cash flow plan and gant chart)
(6) You violated some subdivision rules that causes a lot of wasted materials and labor accomplishments.
As you can see, It will still depend on you, your designer and the contractor you will hire. If you ended up with a good designer and reputable contractor in a reasonable contract price, then you will most probably have an enjoyable construction experience and a good project.
In my next posts, I'll be listing down some tips in finding a good Designer and Contractor.
I'm sure you've encountered some agents in the malls giving brochures, pamphlets, etc of a ready-to-occupy houses located in a newly developed subdivisions in nearby provinces. Some model houses are tagged with an attractive price while boasting the community amenities.
The Good.
(1) Units can be occupied right away after you complied with the requirements and agreed with the terms and conditions. You don't have to wait for several months of construction. You do not have to worry about the hassle of dealing with the contractors/workers. (Although, some setup are just showing you a model house then construct your house after you pay the down payment)
(2) Units are payable in monthly basis and/or can be loaned thru Bank or Pag-ibig fund.
(3) You get to see the actual unit before you get it. Others are even offering optional components or variations. You don't need to imagine the actual sizes of the spaces.
The Bad.
(1) Since the unit is pre-built, the quality is hard to assure. Most defects are not noticeable in the first few years of the house. Though some projects constructed by reputable developers are of considerable quality. If you are buying a second hand unit, chances are there are already repairs made that you probably don't know that may become a problem in the future.
(2) Cost is probably high. The Agents/Brokers will have his commissions. The developer should have its profit. The General contractor should have its profit. The Subcontractor should have its profit. The workers should also have its profit. Subcontracting setup is even up to 3rd-4th pass.
Although some developers claim that the construction cost is low because they built the houses in bulk.
(3) You have to live with the design. Otherwise, you'll spend more on renovation works. If you're not that particular on the place you live, then everything might be just fine with you.
For those mid earning employees who want to have their own house as soon as possible, this is the most popular choice. It's not that bad at all. But there could be better with the same value of investment.
BUILDING A HOUSE,
To some of us, building a house is an enjoyable process. At planning stage, they get excited thinking everything they dreamed of to be done specifically according to their preferences. This is of course assuming that they have found a good designer and contractor. But to many of us, we are afraid of this process. Especially if this is the first time we will be doing this.
The Good.
(1) The house is designed the way you want it. From planning, you get the chance to consider your lifestyle. You decide on where to put up the spaces and what are the spaces you need. You decide on what materials to use. Options are almost limitless.
(2) You can see the progress of Construction. You can see and check the materials and structural to make sure of the strength and durability. You have the chance to make last minute revisions, the moment you see something is not according to what you perceive.
(3) You can work out your budget without compromising your preference. With the help of the engineer, you can plan your cash flow. You can then have the option of by-phase construction where in by proper scheduling, wastage can be minimized due to project halt or delay. You can even set priorities so you may choose to finish certain portion and live with it while other portions are still in progress.
(4) The Budget can also be loaned in Bank or Pag-ibig fund.
(5) You will know your house very well. You can also require your contractor an As-built plan so you'll have reference if you need to troubleshoot anything like electrical and plumbing system.
The Bad.
(1) You can not move-in immediately. You will have to wait till the construction is finished or portion of it is already livable. It might take you at least 3 months to a year to construct and move-in.
(2) You need to involve yourself in every concern during the construction period. It consumes your time. Although, you will be advised and assisted by the designer and the contractor, you will have to make so many decisions. If you find this enjoyable, then its a good rather than a bad.
(3) You will need to pay for construction documents, bonds and taxes. You have to pay your designers for the plans and documents they will be preparing as well as for the signs and seals as required by the city building official. You might also need to pay for construction bonds, contractors all risk insurance (CARI), processing of permits, fire safety, etc. (Although, you may opt to let your contractor do these for you)
Other worse things that could happen;
(1) You have a poor concept of design and space. You just found out that it is not what you want after the building is done.
(2) You engaged with bogus or incompetent contractor. After you gave the downpayment, the contractor is nowhere to be found. Or the contractor's skills did not meet the quality you want. Or the contractor did not finish the project because of some reason that maybe your fault or his fault.
(3) You always decide late or changes your mind every now and then during the construction period.
The project is delayed because they are always waiting for your decision.
(4) Your suppliers caused delays on your project. Or you did not pay on time, that causes the delay.
(5) You ran out of budget in a compromising stage of construction. (Although, this will less likely happen if your contractor prepared a cash flow plan and gant chart)
(6) You violated some subdivision rules that causes a lot of wasted materials and labor accomplishments.
As you can see, It will still depend on you, your designer and the contractor you will hire. If you ended up with a good designer and reputable contractor in a reasonable contract price, then you will most probably have an enjoyable construction experience and a good project.
In my next posts, I'll be listing down some tips in finding a good Designer and Contractor.
Subscribe to:
Comments (Atom)