For Developers
12 min read
How To Choose A Builder For Your Property Development Project
You’ve done your research, purchased the land, secured your finance, and have big plans for an exciting property development project. With all your pre-construction work sorted, it’s finally time to hire a builder - something that you might find is easier said than done. When you choose a builder for property development, look for one who’s experienced, professional, and well-organised, and you feel totally confident in. This article, we have all the questions you should ask yourself, so you can find someone who’s going to do a fantastic job bringing your project to life.
Choosing a dodgy or incompetent builder can result in a wide range of scenarios that you just don’t want to have to deal with. Delays, low quality work, disagreements, and cost blowouts are all on the table. You might even end up tied up in a legal dispute, wishing you’d just been a little more diligent when you were choosing who to hire.
On the other hand, most property developers would agree that the right builder is worth their weight in gold. They’ll help keep everything on track, and be able to help you minimise costs without compromising on quality. When you work with a great builder, your project will feel straightforward, easy, and exciting.
Don’t get lured in by cheap quotes, or rush into a contract with the first builder you talk to. It’s important to take the time to find someone who you’re confident in. Remember - a cheap initial quote won’t matter if the project takes months longer than it was meant to. In the property development world, time is money. Find a builder who understands what you need, and is enthusiastic about helping you meet your timeframes and goals.
Before you start looking for a builder, make sure you have a very clear idea of your goals for the project. Take the time to fully analyse the data and property insights of your site, and make informed decisions about what’s realistic for the build. Knowing all the details, including your material specifications, will make it far easier for builders to discuss your project with you and give you accurate quotes.
Make sure you choose a builder with experience in the type of build you’re completing. If you’re looking to build a block of apartments, find a builder who’s built some before. If they haven’t worked on apartment builds, they might do a fine job, but it’s always better to find someone who’s experienced in your type of project. They’ll know how to do things more efficiently, deal with common problems, help you save on costs, and generally make life easier for you.
For property development in New Zealand, you’re almost definitely going to need a Licensed Building Practitioner (LBP) to design and carry out the project. The LBP scheme certifies builders who the government deems competent to carry out Restricted Building Work - such as structural integrity and weather tightness. To make sure they’re qualified for the job, you can ask to see a builder’s LBP card, or look them up on the national LBP register.
Experienced builders will be happy to show you their completed projects, plus some testimonials. For a big project, always ask to speak to some of their previous clients. Ask what the builder was like to work with, and try to get specific answers. Were they well-organised? How was their communication? How did they tackle it when something went wrong? Were there any disagreements - and how did they get resolved?
While a very cheap upfront quote is often a bad sign, a good builder won’t be looking to squeeze every cent out of you either. They should be willing to work with you throughout the design process to find ways to cut costs or time, without compromising the quality of the build.
The right builder will understand that, in many cases, less is more. They won’t push you to add a storey on top or extra balconies if the feasibility study shows that that’s not the best choice. A good builder knows that the best way for them to make the most money is to do a great job and minimise costs, so you’ll come back to them for more work in the future.
Look for a builder who wants to work with you on a fixed price basis. And before you sign the contract, make sure you look through it carefully. Does the price include all the final details, like landscaping? What happens if there are delays or unexpected obstacles?
Make sure you fully understand every little detail before you sign, and don’t be afraid to ask the builder to clarify any clauses. For a big project, it’s always a good idea to get a lawyer to look through the contract and make sure there aren’t any red flags that could cause problems down the line.
When you choose a builder for property development, you’re usually looking towards a long term relationship. If you find someone you trust, communicate with well, and enjoy working with, they’ll be able to help you with many more development projects in the future.
While checking licenses and past testimonials is crucial, talking to them and getting a feel for their personality and values is equally important. Do you feel like they understand your goals? Are they happy to answer any questions you have? Do you feel like they have a decent level of integrity? Good rapport is so important - so don’t forget to listen to your gut.
Property development can be complex, but at Relab, we want to make it easier for you. For more tips and helpful tools for developers, check out these posts:
How to Choose the Perfect Property to Subdivide
Introduction to the Subdivision Feasibility Calculator for developers, investors and buyers
Advanced Property Mapping
Why is choosing the right builder important?
Choosing a dodgy or incompetent builder can result in a wide range of scenarios that you just don’t want to have to deal with. Delays, low quality work, disagreements, and cost blowouts are all on the table. You might even end up tied up in a legal dispute, wishing you’d just been a little more diligent when you were choosing who to hire.
On the other hand, most property developers would agree that the right builder is worth their weight in gold. They’ll help keep everything on track, and be able to help you minimise costs without compromising on quality. When you work with a great builder, your project will feel straightforward, easy, and exciting.
Don’t get lured in by cheap quotes, or rush into a contract with the first builder you talk to. It’s important to take the time to find someone who you’re confident in. Remember - a cheap initial quote won’t matter if the project takes months longer than it was meant to. In the property development world, time is money. Find a builder who understands what you need, and is enthusiastic about helping you meet your timeframes and goals.
The top questions to ask yourself when you choose a builder for property development
Are you clear about what you want?
Before you start looking for a builder, make sure you have a very clear idea of your goals for the project. Take the time to fully analyse the data and property insights of your site, and make informed decisions about what’s realistic for the build. Knowing all the details, including your material specifications, will make it far easier for builders to discuss your project with you and give you accurate quotes.
What’s the builder’s area of expertise?
Make sure you choose a builder with experience in the type of build you’re completing. If you’re looking to build a block of apartments, find a builder who’s built some before. If they haven’t worked on apartment builds, they might do a fine job, but it’s always better to find someone who’s experienced in your type of project. They’ll know how to do things more efficiently, deal with common problems, help you save on costs, and generally make life easier for you.
Do they have the right licenses and qualifications?
For property development in New Zealand, you’re almost definitely going to need a Licensed Building Practitioner (LBP) to design and carry out the project. The LBP scheme certifies builders who the government deems competent to carry out Restricted Building Work - such as structural integrity and weather tightness. To make sure they’re qualified for the job, you can ask to see a builder’s LBP card, or look them up on the national LBP register.
Do they have testimonials and referees?
Experienced builders will be happy to show you their completed projects, plus some testimonials. For a big project, always ask to speak to some of their previous clients. Ask what the builder was like to work with, and try to get specific answers. Were they well-organised? How was their communication? How did they tackle it when something went wrong? Were there any disagreements - and how did they get resolved?
Is the builder trying to save your time and money?
While a very cheap upfront quote is often a bad sign, a good builder won’t be looking to squeeze every cent out of you either. They should be willing to work with you throughout the design process to find ways to cut costs or time, without compromising the quality of the build.
The right builder will understand that, in many cases, less is more. They won’t push you to add a storey on top or extra balconies if the feasibility study shows that that’s not the best choice. A good builder knows that the best way for them to make the most money is to do a great job and minimise costs, so you’ll come back to them for more work in the future.
Is the cost transparent and easy to understand?
Look for a builder who wants to work with you on a fixed price basis. And before you sign the contract, make sure you look through it carefully. Does the price include all the final details, like landscaping? What happens if there are delays or unexpected obstacles?
Make sure you fully understand every little detail before you sign, and don’t be afraid to ask the builder to clarify any clauses. For a big project, it’s always a good idea to get a lawyer to look through the contract and make sure there aren’t any red flags that could cause problems down the line.
What’s your gut telling you?
When you choose a builder for property development, you’re usually looking towards a long term relationship. If you find someone you trust, communicate with well, and enjoy working with, they’ll be able to help you with many more development projects in the future.
While checking licenses and past testimonials is crucial, talking to them and getting a feel for their personality and values is equally important. Do you feel like they understand your goals? Are they happy to answer any questions you have? Do you feel like they have a decent level of integrity? Good rapport is so important - so don’t forget to listen to your gut.
Property development can be complex, but at Relab, we want to make it easier for you. For more tips and helpful tools for developers, check out these posts:
How to Choose the Perfect Property to Subdivide
Introduction to the Subdivision Feasibility Calculator for developers, investors and buyers
Advanced Property Mapping