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May 2002

Contents :

  1. How to avoid being burned when purchasing real estate (a house or building), getting a second opinion from a specialist in the field before purchasing any major item is sound advice.
  2. How do you choose a painter (or any tradesmen for that matter) when the quoted prices are so wildly different?

Hello

1. Pre-purchase inspections

As a building company we get all kinds of building industry information. Some is interesting and some garbage. However, we always get useful information from Building Research Association of New Zealand (BRANZ).

Recently I received a BRANZ bulletin which I felt people wanting to buy a house (not have one built) would find interesting. The bulletin is a four-page document that strongly advises getting or having the house you wish to purchase inspected by a professional for faults and defects before paying over the money.
The bulletin is made up into eight sections and covers the following subjects:

  1. Pre-purchase inspections. This is a brief introduction.
  2. What are pre-purchase inspections?
  3. Why get a pre-purchase inspection done?
  4. Who should carry out the inspections?
  5. How long should an inspection take?
  6. How should the information be presented?
  7. What should a pre-purchase inspection cover?
  8. Inspection standards.

    There is a ninth section but that deals with credits, i.e. who wrote the articles.

    Not many people would buy a car before having a mechanic check it or confirm a warranty on it. But most often it doesn't happen when buying a house because we either didn't know it could be done, couldn't be bothered having it done or didn't want to spend between $300 and $400 checking out an investment worth, in some cases, hundreds of thousands of dollars. Seems crazy doesn't it.

    You could get a builder to carry out this work but they are not really qualified, and many have been sued for not providing the full picture or omitting vital information. It's true, a builder would be much cheaper than those professionals suggested by the BRANZ bulletin, but you get what you pay for.

    Sad but true, the best person to provide access to this service is the land agent who's trying to sell you, but they won't because they might lose the sale if the report is a negative. In actual fact a savvy agent could gain credibility by referring their prospective client to a pre-purchase inspector. They could even make an irresistible offer to their prospective client, something like; get the inspection done for peace of mind and if you decide to purchase the building I'll pick up the bill. I know I'd buy it. And if the inspection proved that the house had faults that put you off, not only would most people appreciate the help, they would probably stick with that agent because they knew he or she was working for their best interests.

    If you would like one of these BRANZ bulletins on Pre-Purchase Inspections, I suggest you phone the BRANZ Advisory HelpLine on 0900-5-90-90. Tell the reception what you want and he or she will put you through to BRANZ publications. The whole exercise will take less than 5 minutes and cost less than $10, including the phone call.

2. Selecting the best tenderer, how do we do it?

For years now I've been using the same subcontractors - same plumber, same electrician, same block layer and the same painter. Because I know I can rely on these tradesmen to give me a great service, every time, I don't even bother to have the work priced by other subcontractors.

I know my tradesmen can't produce a top job for my clients by being the cheapest. Cheap tradesmen produce cheap work, and cheap work falls apart. All I ask of them is to be fair and competitive.

Just recently I was having a few problems with my usual painter. He was doing a great job but letting the team down a little in other ways. I felt his prices were getting a bit high, and it was starting to put whole projects at risk for all of us by becoming too expensive for the client.
I decided to put a painting project up for tender to three other Registered Master Painters. When the quotes and prices came in they created more of a problem for me. The first quote was $6,000, the second quote was $6,500, my usual painter was $16,000 and the fourth painter was $23,000. How could there be such a huge difference in prices? They were all Registered Master Painters that you would presume were all competent tradesmen. They all wanted the work and knew that by being successful there was a good chance of further work from a prominent building company like ours. They were all given the same plans and specifications to price from.

So how does one choose? It would be so tempting to choose one of the two cheapest prices but the fact is that with the high standard of houses we so often build, I knew that these tradesmen would not be able to produce the goods; in fact I'd be heading for disaster. The $10,000 difference in price between my usual painter and these other two cheaper prices is a huge amount of money, and as I say most of us would be tempted to go the cheap way, thinking we were making a saving. I decided to stick with the devil I knew as I know I can always rely on his work and workmanship, and I can do without $10,000 worth of headaches.

As for the highest price tender, well, I now believed I was getting value for money with my usual painter and found that the best way to move forward was to discuss our difficulties so that we all win, i.e. the client, the painter and then main contractor all happy.

One thing about my usual painter (or any of my subcontractors for that matter) is that he understands what service is. In other words, if there is ever a problem with his workmanship after the project is complete he goes back to deal with it immediately and without any questions asked. That is peace of mind for me and satisfaction for my clients. And after all, service is all about what happens once the cheque has been paid and not promises before the sale is made. Some tradesmen's service is more like what happens when you introduce a bull to a cow and let nature takes its course.

All plans produced on computer.

By the way; we have just invested in some of the latest new technology in 3D CAD. What this means for you is that we will be preparing plans on the computer. Once we have them in there you will be able to see exactly what it looks like before we finalise the plans or start to build. We'll even be able to take you on a journey around the outside of your new home, looking at it from all angles, looking through the windows, then through the front door, up the passage, into the bedrooms, seeing how the furniture fits and ensuring there is enough room to move in the kitchen. Sounds fantastic and it is/will be once we learn how to use the ……… thing. You're welcome to come and have a laugh with/at us at any time.

Kind regards
Julian Moss

 
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