Contracting A Builder - Common Risks and Problems

Quality Issues

• Poor construction and finishing quality by the builder.
• Poor quality standards and workmanship of subcontractors.
• Lack of knowledge about, and committment to sustainability and energy efficiency.
• Use of cheap labour, products, and materials resulting in lack of durability and longevity.

Legal Protection

• Lack of various contracts that should be in place.
• Lack of robust legal protection for the owner (where a contract is in place).
• Little or no written guarantee of workmanship, and little or no focus on warranties.

Cost

• Lack of a detailed and accurate contract price – which is likely to increase significantly during construction.
• Lack of clarity around variation costs during construction leading to large unexpected increases in the contract price.
• Costly mistakes that no one will take responsibility for, caused by a lack of diligence and communication.
• Poor weather tightness leading to significant legal and remedial costs in the future.

Completion

• Inadequate time spent on the job by the builder.
• Subcontractors not turning up when they say they will.
• Completion occurs well after the expected date.
• The house is left uncompleted.
• A Code Compliance Certificate has not been obtained.
• Defects are left without being remedied.

Project Management

• Lack of a documented construction system resulting in inconsistencies and important items being missed, causing significant problems later in the project.
• Poor communication and a lack of defined roles and responsibilities causing confusion, conflict, and stress.
• Lack of tools and structure around Client management making the process difficult and stressful for the owner.