Now that you’ve completed Step 5: Detail, you will have selected a Builder, obtained a Building Permit and signed a Building Contract.
The goal of this step, Step 6: Build, is to turn your documentation into bricks and mortar culminating in Certificate/s of Occupancy.
This article will outline the following elements of the build process:
- Contract Administration
- Building Stages
- Obtaining Separate Titles
Property Development Step 6: Build
Please note this article will outline the build process as it pertains to residential construction. When a proposed development rises above 4 storeys it is considered to be a commercial development. Significant changes in Town Planning, Financing and Labour arrangements occur when one crosses from residential to commercial development and are beyond the scope of this article.
1. Contract Administration
The Builder that you (with the help of your architect) select will administer your Building Contract around four pillars:
1a) The Building Contract documentation.
Your plans, specifications and contract (as defined in the previous step) is used to establish the scope of the works to be completed.
1b) The Project Estimation & Budget.
The Estimation (ideally provided by your Building Estimator) is a detailed list of each and every cost of the project. As these estimates are confirmed by quotes and later invoices, the costs of the project against the project budget can be tracked.
1c) The Project Schedule.
Working closely with the project budget objectives, all works must be submitted to a Project Schedule to ensure that adequate lead time is allowed, that the project can be completed in the contracted time and that the overlap within and between jobs can be measured. The project schedule also dictates when the Builder gets paid.
1d) The Contract Controls.
In order to benefit from the Project documentation, budgeting and scheduling, there needs to be thorough Contract Controls that document and enforce agreed actions that are the result of variations to the contract.
These four fundamentals together enable the building of almost any project.
2. Building Stages
Within the building contract, the delivery of the building is broken into stages that are used to measure the progress of the building and define mandatory inspection points that must be carried out by the Building Surveyor. It is against the law to build without these inspections being carried out.
The following is a list of the standard building stages as described in typical Victorian Domestic Building Contracts as used by the Housing Industry Association and the Master Builders Association:
- Deposit
- Base Stage
- Frame Stage
- Lockup Stage
- Fixing Stage
- Completion Stage
Several of these points also designate the timing at which your financier will pay the builder their Progress Claims assuming work is completed satisfactorily. They may also be a good time to have formal site inspections with your architect.
The building contract stages can be varied if a project is to be constructed in an unconventional manner.
Note that before building can commence, the site needs to be prepared (or ‘prepped’). If there is an existing dwelling/s on site, site preparation will involve disconnection of existing services, obtaining of a demolition permit, and the demolition itself. Demolition can be separate to or included in your building contract.
Lets break down the building stages in more detail. Once again, we are talking about a standard brick veneer construction on a concrete slab.
2a) Deposit
A Deposit is generally paid when the project documentation is ready and construction can commence. The deposit amount cannot, by law, exceed 5% of the contract amount.
2b) Base Stage
The first step is for your builder to set out the buildings. This is followed by excavation, filling and levelling of the site to allow a flat surface for the buildings to be sited.
Services including plumbing and electrical that are to be located under the slab now need to be installed. The sub-contractors doing this work rely on the set out for the placement of the services.
Once the concrete slab area has been locally excavated for beams and pads, the first mandatory inspection occurs. This foundation inspection is carried out by the Building Surveyor. The slab area is then boxed, plastic membranes installed and reinforcing steel is put in place. Once the steel has been placed, the building surveyor comes back to site to make his pre-slab inspection. The slab is now ready to be poured.
Once the slabs are poured the Base Stage has been achieved.
Note: it is not uncommon for variations of contract beyond the control of both the builder and client to occur during excavation, as unexpected site/foundation issues are unearthed eg. rocks, septic tanks, holes, shafts etc.
2c) Frame Stage
Now that the concrete slab has been poured and the boxing has been taken away, Frame Stage can commence.
Timber frames are either cut and assembled on site or they are pre-fabricated and transported to the site. In the case of a two storey dwelling, the order of framing is as follows:
- Lower wall frames
- Structural steel (if required)
- Upper floor joists
- Second storey flooring
- Upper wall frames
- Roof frame.
The completion of the frame calls for the next mandatory inspection by the Building Surveyor: the frame inspection.
A successful frame inspection also marks the completion of the Frame Stage.
2d) Lock-up Stage
From here the project scheduling becomes more intense, as there is an increasingly busy traffic of trades to do their work. Although lock up Stage is not one of the mandatory inspection stages, it is generally the biggest contractual stage.
With the frame completed the roof plumber can install the fascia, gutter and flashings that in turn will allow the roof tiler to complete the roof. It is good practice for your builder to work from the top down as this helps to avoid water damage and provides shelter for the trades to work “inside” the building. During the lock-up stage services are “roughed in” by the electrician, plumber and heating/cooling contractor. This is the process of running the pipes and cables through the frame.
In order to complete the lock-up stage windows must be installed, bricks are to be laid and external claddings, eaves linings and doors are installed.
Lock-up Stage has been achieved when the building is weatherproof and secure.
2e) Fixing Stage
Any work your builder has been done early to secure quotes and availability will really pay dividends at this stage.
Typical order for the fixing stage is:
- Insulation to be installed
- Walls and ceilings to be plastered by the plasterer
- Doors, architraves, strip floors, skirtings etc to be installed
- Cabinetry installed and building works are made ready for the finishing trades.
This is the Fixing Stage complete.
2e) Completion
With the buildings locked up and fixed, the trades need to be scheduled closely and in an orderly fashion. Supervision on site becomes important for the management of the trades and ensuring things aren’t knocked around. The finishing trades that need to complete their works would generally be in this order:
- Ceramic tiler
- Painter
- Shower screens and mirrors
- Cabinet fit off
- Electrical fit off
- Plumbing fit off
- Mechanical (heating and cooling) fit off
- Carpentry fit off
- Floor polisher
- Carpets
- Garage doors
- External incidentals
- Install appliances
- Painting touch ups
- Caulking and sealing
- Builder’s clean
The final mandatory inspection occurs at the completion of the building works. The building surveyor is given the certificates for the licensed trades and inspects the works for compliance and completeness and then issues the Certificate of Occupancy (sometimes referred to as a Certificate of Final Inspection, Certificate of Completion or “C of O”) for the project.
Your building should now be complete and building works should be ready to be handed over to you.
3. Obtaining Separate Titles
The completion of the subdivision process gives you a separate title for each lot in your development. Without a separate title, you cannot settle on any (pre) sales you may have made so it is in your best interest to start the subdivision compliance process with your council as early as possible.
Be prepared to leave at least 8 – 12 weeks for the entire subdivision compliance, certification and Titling process.
Assuming you are performing a multi-unit residential subdivision, the way that your subdivision boundaries are sited will determine when you can apply for a statement of compliance from your council.
If no building walls form any part of the subdivision boundary, you can apply for a subdivision statement of compliance from council once you have received statements of compliance from each of your services providers.
More commonly however, a wall (eg. garage) does form the boundary between one proposed subdivided lot and another. In this case, you cannot apply for subdivision certification until at least the base stage is complete.
To find out more, read our earlier article on the process of Land Subdividing.
Conclusion
Congratulations! You’ve now progressed through possibly the most exciting stage of development – turning your documentation into bricks and mortar complete with Certificate/s of Occupancy.
There are so many details involved in the Build process, but nearly all of them are a part of the following elements:
- Contract Administration
- The Building Contract documentation.
- The Project Estimation & Budget.
- The Project Schedule.
- The Contract Controls.
- Building Stages
- Deposit
- Base Stage
- Frame Stage
- Lockup Stage
- Fixing Stage
- Completion Stage
- Obtain Separate Titles
In the next and final article in this mini-Property Development Course, Step 7: Realisation,we will discuss how to realise the profits on your property development!
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Related links:
- Building Commission of Victoria
- Australian Institute of Building Surveyors
- Housing Industry Association (HIA)
- Master Builder’s Association of Victoria (MBAV)
- Land Titles Office of Victoria
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