“What you need to do is you need to ask them to break their price up into the relative components and say you’re only paying the portion that’s for them due at that point in time.”
This is part 1 of Managing Payments with Builders with Stephen Janson providing valuable tips to make sure you make the most of your renovation budget.
Bernadette: Hi! It’s Bernadette Janson here and I got Stephen with me today. Which is a bit of a treat because Stephen’s an expert in construction. He’d probably be one of the top 50 project managers in Australia and he is generally project managing the construction of hospitals and universities.
And so he’s going to be doing a few, joining me for some of the videos just to give you the expert’s input. And today we’re going to talk about managing of payments with builders.
So builders have a tendency to front load their progress claims don’t they?
Stephen: They do. I think when you actually get a quote from a subcontractor or from a builder depending which works you’re doing, what you need to do is – particularly for the project – but I’ll give an example maybe like a plumber they will come up and start the project on to the first fix. Then once the wall linings are done and the tiles were on and things like that they’ll come back and they’ll do the second fix.
So what you need to do is you need to ask them to break their price up into the relative components and say you’re only paying the portion that’s for them due at that point in time.
And you also need to have some understanding of where the cost of the of the works is say, you’re not paying as Bernadette said, a front loaded amount of money you need enough there – one to ensure they’re going to come back and complete the works and make sure that they’re responsible for anything that may need to be changed as a result or if there are any errors as a result of that.
So we never want to change or use one plumber to do or this goes for plumbing, electrician or a lot of other trades where you don’t want one person to do one thing and then have a similar trade or a same trade come and do the second fixed component.
Because if there’s any errors in the first part you will be paying double for someone to fix the the error in the first section. So it’s about getting that right, the right mix and making sure you’re not paying any more than what you need to.
Bernadette: Yeah. Beautiful.
Part 2 of this video tip is coming soon!