Buyers Guide

When buying a home it is important to be aware of every aspect of building, so that you can decide exactly what you want, and get exactly what you pay for. This guide will provide Queensland home buyers with all the information and advice you would need. Please feel free to print this information for your reference.

Written by Greg Byrne

Budgeting                           

Take in to account the full situation -  loan set up costs, land purchase, legal costs, construction cost, additional costs after construction e.g. driveways, landscaping and additional furniture required for the new house and how much of this you can complete yourself. This will save you a lot of heartache when pricing your new home, tell your builder the budget before you start looking at designs. Be clear on your budget and your housing needs.

Purchasing Land

Topographic Features

It is a good idea to purchase land in a new area. If you plan to sell your house for any reason, it will sell more readily in a new area; partly due to the positive visual impact of the other new homes surrounding it on top of new facilities and leisure areas such as parks. Consider the aesthetic value of the land - if it has a nice view - it will be worth more. The situation of the block in relation to shops, schools and other facilities is also a very important factor to consider when selecting land look at the services provided; i.e. power (underground supply, property pole or aerial supply), water (town supply, bore or other), sewerage (town system, septic tank system or clear water system). Access to the block should be known and inspected before buying a block - the cost of putting in a gravel road can be substantial.

Site Classification

These days, the developers are having the soil tests carried out on the blocks (rather than the buyer) so it pays to find out what the site classification is before you buy. A class "S" (stable) site will be far cheaper to build on than a class "P" (problem) site. A problem site is usually very unstable, soft soil. The classification can effect the price of the house by thousands of dollars. Most sites on the Tablelands are class "M" (moderate).

Sloping Blocks

Sloping blocks aren’t as terrible as some people perceive them to be... they are usually accompanied with a good view, and this in turn increases their value. Sloping blocks lend themselves to elevated houses, timber floors are great for the house because cool breezes flow beneath the house and keep it cool. Having a garage under the house is another advantage of sloping land, because of the lower cost for the ground floor and the space beneath the house is put to good use. Also, sloping blocks have better site drainage.

House Design

In relation to the design of your new home, the following points should be considered:

Type of living

The type of living you will choose should reflect your lifestyle. For example, if you are planning to have, or already have children, the numbers of bedrooms you require is an issue. Whether to have an ensuite and walk-in robe (WIR) or not. If you like outdoor or indoor entertaining . Choosing to have verandahs or patios for outdoor entertainment areas or choose large living areas inside the house.

Specific Products

These are the particular products you want to use in the construction of your home which determine the quality, the costs and the maintenance of the end product. For example, concrete or timber floors - masonry block or brick veneer or steel framed walls clad with Hardiplank; colourbond or tiled roofs.

Energy Efficiency in Design

This is the process of utilising particular products and designs to your advantage to make your new home more energy efficient. For instance, using timber on decks or verandahs rather than concrete will reduce the transfer of heat into the main slab, cooling the house. The type of glass in windows and doors (whether it is tinted or not). The hot water system: solar, electric or gas. The insulation used in the roof and walls. The actual design of the house e.g. wide overhangs on the roof and the cladding product on the outside walls all go into making the house more energy efficient.

In 1989 Byrne Homes made the decision, not to use rainforest timbers where possible, and only to use renewable plantation timber resources to save on our natural forests. The majority of our homes these days are built with a steel frame structure.

Product Safety and Security

The long term security of the structure of your home. Organo-chlorides are now banned for use as termite barriers. As we live north of the Tropic of Capricorn we live in a very high risk area for termites, and you will need to choose a method of termite protection to suit your area. There are several methods for termite control, which are listed below:

• Termite shielding for suspended floors

• Concrete slabs as a barrier

• Barrier mesh management system

• Graded stone management system

• Chemical soil management system

• Termite resistant materials

Byrne Homes uses a combination of both the Barrier Mesh System and  Termite Resistant Materials. This system is environmentally friendly as there are no chemicals used, and will last the life of the house not the life of the chemical.

Builder Selection

When choosing your builder, you should observe the following details:

Budget

Be clear on your budget and housing needs.

Building Services Authority Licence

Check with the Building Services Authority that the builder is licensed - this advise is free. You can also obtain a report from the BSA on a builder, which will inform you of their licence number, number of jobs performed and any orders issued by the BSA to rectify problems the builder has caused, however there is a fee for this. For more information, visit www.bsa.qld.gov.au

What the builder specialises in

Does the builder specialise in small renovations or large projects? A large home builder has the equipment, staff numbers and capability to build an entire new home, whereas a renovations specialist may only have the capacity to do small repairs. Ask for the starting date and construction period it will take to build your home before you sign the building contract. Sixteen weeks is the average construction time for a normal sized home. If the builder wants thirty weeks to complete the house you should consider the extra rent you will be paying.

At Byrne Homes we specialise in one off designs, as we find this gives our clients greater freedom to fulfil their needs at a sensible price.

Location

Today we see builders servicing areas all over North Queensland and one of the main considerations is, "Will the builder be here to service the house in a few years time?" and, "How long will I have to wait if there is a problem to be fixed if the builder is not in the local area?" 

Reputation, Experience & History

The reputation and history of your builder is very significant. The more experience and positive the history of your builder is, the better the quality of the end product. Talk to past customers about the customer service and reliability of the builder, as well as the quality of their work (ask the salesperson for names and contact details of previous clients in your area).

Know what you are getting

Many home buyers find it difficult to visualise the features of a home from the floor plan alone, Byrne Homes uses a CAD Program (Computer Assisted Drafting) which gives a three dimensional walk through of the home before it is built. This CAD program is offered free to all Byrne Homes clients. Can your builder guarantee your new home will turn out the way you plan it to be.

Evaluating Quotations

One of the hardest things to do is to evaluate different quotations received for your new home. The old saying, apples for apples applies, what you need to do is make your own list of items included. Compare the Prime Costs (PC) and Provisional Sum (PS) values, the easiest way to lower the cost of a house is to have lower PC and PS values. Make sure each quote includes the same items in the house and that nothing is missed. All this takes time but is well worth the time spent in doing so, it is no use signing a contract only to find out later certain items were not included e.g.. clothes hoist, towel rails etc. The cheapest quote may not always be the best when all factors are considered. 

Contract Agreement

Domestic Contracts

As of the 1st of July 2000 the new Domestic Contracts Act 2000 came into effect. The Act regulates contracts between builders and owner for the construction of a single detached dwelling or a duplex.

Foundation Data

If the work proposed under a contract will require the construction of footings or slab for a building, the building contractor must obtain foundation data that is appropriate for the building site before entering into a contract; having regard to the Building Contract of Australia, the need for a drainage plan, engineers drawing, soil test etc. This should be done under a Preliminary Agreement before entering the building contract.

Construction Period

The time schedule to a contract must state the start date and the completion date, or if the start date is not known, the number of days that will be required to finish the work once started

• The new schedule must also show how many days have been allowed for

• Inclement weather having regard to the time of year when the work is being done

• Non working days (eg Public holidays)

• Any other likely cause of delay

Failure to do so will attract a penalty for the builder.

P.C. Items (Prime Cost) and P.S. Items (Provisional Sums)

Definition:

A PC Item (Prime Cost): is an allowance made in the tender or contract for the supply and delivery only of an item/s of material (ie taps, baths, light fittings) that have not been selected at the time of the tender or before the contract was signed and does not include labour to install.

A proprietor owner would normally make the final selection of the item, which is subject to a PC allowance.

A PS Item (Provisional Sum): is an allowance made in a tender or contract for particular work for which the scope could not be finalised before the tendering or signing of a contract. This allowance includes the total cost of the supply and installation labour.  Such items as kitchen cupboards, building platform, water treatment systems etc.

Where PC and PS item allowances have been shown in a tender or contract document, the amount is inclusive of GST.

When discussing PC and PS amounts, remember:

• Allowances for PC and PS items must be reasonable.

• If breached a penalty of up to $3750 will be applied to the builder by the BSA.

• The PC and PS schedule to the contract must list a detailed description of the item and contracted services to which the sum relates, and a breakdown of the cost estimates provided for in the allowance. The breakdown must show at least the quantity of materials involved and the unit cost to the contractor. Copies of the supporting documentation must be given to the consumer when seeking payment under the related progress payment.

It is therefore imperative that builders make reasonable estimates. At Byrne Homes we strive to give you the most accurate costs for all items.

Progress Payments

Deposits will be limited to 5% of the contract sum on contracts over $20,000  Parties cannot contract out of these requirements.

Progress payments will be required at defined stages (e.g. deposit, base stage, frame stage, enclosed stage, fixing stage and practical completion) with the current percentage rates.

If minor defects or omissions exist at the completion payment (practical completion) they are to be listed on a defects document which is to be signed by both parties. A full payment can then be made.

Cooling-off Period

Owners will have the right to withdraw from any contract over $3,000 during an imposed 5 day cooling-off period.

All contracts must contain a notice advising the consumer of their rights to the cooling-off period

To withdraw from the contract the consumer must give a written withdrawal notice to the contractor, and pay the contractor any expenses incurred by the contractor plus a penalty of $100.

Variations

Variations are to be put into a written form within the shortest practical time, or, if the variation consists of an addition to the works, before work subject to the variation is carried out. The variation form must obtain the following:

• Describe the variation

• If the variation is sought by the contractor, the reason for the variation

• The effect the variation will have on the work as a whole

• If the variation will result in a delay of the works, an estimate for the delay

• State the change of the contract price because of the variation

• Make appropriate provisions for the variation to be paid at the relevant progress claim.

• The variation must be signed and a copy given to the consumer within five days.

Other Matters

Implied warranties extend for a period of six years and six months from the date of practical completion. However, it does not apply if a deficiency or defect arises from instructions from the Owner or Architect contrary to the Builders written advice.

BSA (Building Services Authority)

The role of the Building Services Authority before, during and after the construction of your new home is:

• Licence all builders and trade contractors who carry out work within the Building Industry

• Run the Statutory Insurance Scheme which provides protection against non completion of works, defective construction, and subsidence or settlement of buildings

• Provide information and assistance in dealing with disputes through the Dispute Management Division for consumers and contractor.

• Publish and sell the Building Contract for Residential Construction and the Minor Works Contract.

For more information about building, please contact Byrne Homes: sales@byrnehomes.com.au or phone 07) 40921 144.