petunialee

One more thing... the Tender Price Index (available from BCA at a quarterly subscription) is computed using the outcomes of government tenders. These tenders are highly competitive and hence gives a good indication of rising and falling materials and labour prices. These government tenders are run and administrated by professionals. Think about it logically. Contractors and architects are likely to charge a premium for private houses (i.e., semi-detached) simply because home owners are not professionals and often know no better. Architects and contractors are aware that they evolve in the same industry and may run into each other again. There would be greater natural sympathies between them than between you and them, since you will build ONE house is all (or TWO). Margins are likely to be higher with semi-detached and terrace house building because they know we are not professionals. I wouldn't have known better if I didn't have access to my friends' tender documents. Both are from the building industry and they are building their own house at the same time as I. I simply matched my quotations to theirs and added a premium to offset risk. Their tender price is below 550K and includes marble plus swimming pool. However, the couple was able to get high quality materials very cheap from leftover stock (using their contacts) from the completion of a few condos. Though their contractor is not BCA registered (this is what I mean by risk), their house is almost completed. The point is that if you are able to supervise yourself... and have influence in the industry, you can get a lower price.... and if you aren't one of those difficult people who change their minds and keep asking architects and contractors to rework, then you can get a better price too (as long as your tender exercise is rigorously run).

I considered the performance bond but then decided against it. It adds to costs. I mitigated the risks by really screening the contractors... their current pipeline and the past projects. One mustn't choose contractors with no on-going house building project. One mustn't choose contractors with too many ongoing projects either. And stay away from contractors that are not BCA registered. BCA gives contractors each a class ranking that reflects their cash flow capabilities. You don't want contractors with problematic cash flow. It doesn't take much to ring on the doorbell of one or two of their past clients to ask about their experience. My contractor gave me a portfolio of more than 15 houses he had built, and I randomly picked from there to chat to the owners. I visited his office too. This said, knowing that I have a very good price, I also need to play my part in being a fully co-operative client. One mustn't make life difficult for the contractor either by constantly dithering or changing one's mind. That could put your contractor outta business if his margins are already too tight. And if the contractor folds and your house is half built, you will have a big headache. But yes... you have a good point Yoongf. I know I take a risk here by not getting a performance bond, even though it is a mitigated one. Those others who are considering building a house can look at Performance Bond to manage the risks of getting a bad contractor.

My previous architect had a BOA registration. He made all the plans submission under his own name... but he was very very old, and very very cheap. It turned out that he was more worried about representing the interests of a particular contractor than mine. When I started asking some logical questions, he himself opted to withdraw from the project stating "Let's stay friends". He sounded a little scared that I would do something, but since I didn't know I COULD take him to task, I didn't. But I could tell he was scared of something. I didn't know that I could take him to task... but now that I do, it is something to consider. Still, he pulled out before he really did any damage to me and finding proof of misdemeanour would be difficult. Unless my 2 friends who were his previous clients (who recommended him strongly) decide to pursue it. However, their projects were done a couple of years ago so I dunno... My advice to all is to be careful. The construction process is a complex one and laymen like us know too little to effectively supervise. Get an architect you can TRUST, and make sure all the checks and balances are there. The QS checks the architect and the contractor. The architect checks the QS and the contractor and the PE. The clerk of works checks the building of your house (acceptable grade concrete etc...) Just to share, my previous architect told me. 1) "The more details you put into the drawings, the more expensive the project will be." This way, he didn't need to provide drawings and specifications... and left wiggle room for his favourite contractor later. 2) "You don't need a QS". This way, there is no documentation to protect my rights if there is a dispute with the contractor. 3) "In a recon, you are not allowed to raise the 1st floor ceiling height to the maximum allowable". This way, he was helping his favourite contractor to save building costs since I told him that if the budget exceeds 600K, I have no money to build. Since 600K is the max revenue, the only way to squeeze profit is to push down costs, i.e., push down my requirements. 4) "Very few builders like to build houses. They all prefer to build govt projects. Builder XXXX is one of those who like to build houses". This way, he was guiding me towards his builder. 5) "Don't subscribe to the Tender Price and Materials Index on the BCA website because these are govt tender prices and they are very expensive". This way, I would not access objective price indices that would contradict all the lies he was telling me. 6) "The clerk-of-works should be paid by the contractor". This removes yet another level of checks on quality of building works. The clerk of works is there to witness and document that the building materials and what not are of acceptable quality, and cast/applied properly. If the contractor is the paymaster, there is conflict of interest. The clerk of works wouldn't be keen to write a poor report because he wouldn't wanna offend his paymaster. You may not get a dangerously built house which will topple, but you may not get the high standard the govt stipulates. 7) "Your budget is so small that you have no money to tile the driveway... to have granite... to have timber deck". This way, costs are depressed and more of my 600K becomes profit for them. 8) "The retention fee is 2.5% standard." The standard retention fee that you pay after the 12 month warranty period is actually 5% (as documented in the standard contracts of the Singapore Institute of Architects). Again, he was representing the contractor interests. 9) "You shouldn't come down to site everyday. Leave it to the pros". This comment of his speaks for itself eh? 10) "Your semi-detached needs 14 months to build". My friend's semi-detached was done in 4 months. That is not recommended though. Too rushed and the concrete won't cure. Cater 6 to 8 months. 11) "It takes 28 days to cure concrete". This is only true of building technology in the 1950s. 12) "Everyone has spare cash. I am sure you have spare cash beyond the 600K". I told him "No... I am very much poorer than my friends." As it turns out, my project costs much less than 600K... and it includes granite detailing and timber decking. My 2 friends (who used my previous architect) told me that they used Builder XXXX too. One did so because my previous architect complained so much about the first builder that the first builder gave up. The second one used Builder XXXX because the contractors she had invited refused to come in to tender after speaking to my previous architect. My tender exercise with my previous architect clearly wasn't about to be an objective and truly competitive one. If there is collusion in your tender exercise, you will never get a competitive price. I watched my tender exercise carefully to ensure that it was a truly confidental tender, and none of the builders knew who the other was. House building is like shopping in China or Mauritius. You need to do your homework, and you need a good guide. Or else you would get fleeced. It really is a case of buyer beware. It helps to subscribe (for $120 for 3 months) to the BCA website's price indices. This gives you an objective indication of material prices etc... Surprisingly, I found that despite what the builders say, the Tender Price Index is at about the same level as 2007 or 2008. This may have changed. I last checked 2 months ago. You can also go to the Singapore Institute of Architects to buy copies of the standard contracts, and the latest building specifications. It helps to talk to a lot of people who have built houses before... and spend time chatting with potential builders' past clients. I borrowed 3 sets of tender documents and contracts from friends, photocopied them and read through everything. The government has structured a building process that involves QS, PE, Archi, builder and clerk of works. These are meant to check and balance each other. You need to make sure that all these people are loyal to you, report to you and work to further YOUR interests. After many years in the industry, many builders and architects get buddy. After all, people like you and I build houses once or twice in a lifetime, but architects and builders work together in a small industry from project to project... Unless you are vigilant, you will be the outsider in your own building project. Most architects are honest but there are bad hats around and you need to be very careful.

I'm thinking that it mayn't be an issue of building quality but of design quality. Award winning architects may have design specs that are special, innovative and therefore not so straightforward to build. My house is cheap because my design is very very very simple and my furnishings are very modest indeed. Yes, yes... do please all share as you go along. This is a stressful enough journey as it is so any companionship is welcome!!

Hi Wildfaye, May I link you to my blogpost to give you an idea of how to start? http://petunialee.blogspot.com/2010/09/hou...-architect.html Inside that post is a link to another post which documents how I almost got cheated by a previous architect. I am only starting demolition next week. Once works get under way, I can update my blog on the works progress and the quality of my contractor too.

My semi-detached land area is 3600sq ft... my building contract is under 550K and I am building up to the max of that land area. Actually I can build 3 storeys. But I stop at 2.5 because I don't wanna have 2 helpers. Even if I build 3 storeys, it won't come to 1 million. So I kinda doubt your inter-terrace at 2500 sq ft of land will come to 1 million eh... unless you use very luxurious fittings.

Mine was a flat rate from the start because I have friends who work in the building industry and this was the first piece of advice they gave me. I told the architects that that if not flat fee, no need to quote. I am paying my architect 70k for reconstructing a 2.5 storey semi- detached (about 4000 sq ft), using modest materials such as homogeneous tiles and a hint of granite detailing in kitchen and toilets. I am demolishing everything to rebuild. I am paying 538k for the basic house sans cabinetry. This means all plumbing, electrical, tiles, gate and fence... That works out to be 13%? The logic behind a percentage costing is that the bigger the project the more drawings. For example... Condo or factory versus inter- terrace. However, if yours is inter-terrace, there is a limit to the number of drawings required. My architect calls mine a peanut house... Not much to do. So really, there is no call to do percentage. I reckon that I am rather overpaying my architect for the contract sum but by paying him an extra 3%, he is motivated to help me save money on contract. The big savings are in the construction. You don't want to incentivise your architect to help the contractor earn more so that he himself can earn more. I gave him 20k more and he helped me save 200k. Quite good. Trust is important. If you cannot trust your architect in terms of money, you will suffer through the building... Always suspecting that he is not being entirely upfront. The fact that you are asking and confirming all this shows that trust is not quite strong. Best to talk to a few other architects. For your own peace of mind, design prowess needs to be balanced with honesty, propensity for strong and conscientious project management. Otherwise, you will suffer trying to supervise work yourself. My friend hated her architect after some time. He went to site once a month only! Also, the impt things in housebuilding is in areas you and I cannot evaluate. Type of cement etc... You dun want corners cut in the hidden corners of your house even whilst you have an award-winning design. My PE is 12 k and my QS is 8k. They're excellent. Very responsive and thorough. Best of all, this architect is loyal to me,not to the contractor. When negotiating building contract, contractors will price for risk. If they think you are a difficult client, or they don't know you... They will price higher in case you make them tear down and build etc... My 2 lowest quotes came from contractors that I had interviewed and chatted with... They assessed me as a low risk client. So my pricing is quite good. Those contractors whom I had never met priced about 100k more. Make sure you invite to tender only those registered on BCA website. You dun want the fly by night ones who take your money and skip town. The construction industry has been through ups and downs in the past 2 decades. People do whatever it takes to survive. It is easy to get creamed in the construction industry. As a first-time house builder, do be vigilant. I was hands off and trusting at the start... and I almost got creamed. Even when choosing contractors, choose one who is able to facilitate access to his past clients. Talk to his past clients and view the houses he has built. Visit his sites. If he is good, he will be able to get a past client to speak for him. If no past client testimonials... then think twice. There is just too many unknowns in the project for you to risk it with a bad contractor. My friends in the building industry managed to get an even better contract price but I didn't dare take their contractor (who was not registered with BCA) because I am not from the industry. Their contractor won't play punk with them because they have influence in the industry. I chose only those with BCA registration... and I am happy with my price even though it is about 50K more than theirs (and I don't have marble and swimming pool).

1 million for an A&A is definitely overpaying. Part of reason could be that you pay your archi percentage of costs. This incentivises him to inflate costs. Negotiate for flat rate. His time and effort can be scoped in man days. No need to pay more just 'cos your building costs go up. Dump him and find another archi. You may wanna check out my blogpost on architects. http://petunialee.blogspot.com/2010/09/hou...-architect.html

I want to share what I learnt as a first time house builder with people who intend to reconstruct their houses. http://petunialee.blogspot.com/2010/09/hou...-architect.html

Are you comparing apple to apple... i.e., right down to insulation thickness, brand etc...? Inferior insulation can give trouble.

Dyson is the best... I have never been happy with vacuum cleaners until I got the Dyson. I'm asthmatic.

This poor quality installation has photos. http://202.157.173.192/forum/lofiversion/i.../t28769-50.html

Check out this http://www.clubsnap.com/forums/showthread.php?p=4009870

You may wanna go for CoolServe. See my experience with CoolServe here... http://petunialee.blogspot.com/2010/08/gai...-coolserve.html

I pursued it up to management. Every level tries to protect their butts. The impression I get is that even if Gain City is at fault, it must not lose money. It must GAIN money. Who loses? The customer. Very simple logic.

I was there the whole time for Gain City too. I was unceremoniously pulled home from an important Seminar and yelled at from the moment I stepped into the house. My experience was bad on EVERY count. 1) Rude technician 2) Lazy technician I-1223: Technician decided to go home to JB at 3pm to beat the crowds so I had to take leave the next day just to be there again to watch the lazy man. 3) The "experts" from the company recommended wrong insulation thickness and I had to pay to get that replaced just as Chrysalis (guy who started post) had to pay to get his trunking replaced. 4) The technician refused to lay dust & debris protection, waving away my concerns. 5) I requested a change of team (where the Supervisor was the older brother of the lazy technician) and the company sent the same team with the same supervisor. 5) The marketing fellow on the phone told me that Gain City was the biggest in the market and every other air-con installer depends on it... implying that I have no choice but pay what they ask or my insulation won't be fixed. 6) The warranty does not cover pipe condensation even though it clearly was Gain City's wrong recommendation of insulation material that lead to the condensation. In general is good ... is not good enough. No one will want to pay a few thousand dollars and risk an off chance of a bad experience. In this thread, we have two bad experiences where Gain City won't take responsibility for wrong materials installed. How many more have we not heard? It's one thing when a technician underperforms. If the company is good, they will look carefully into the customer complaint and have procedures to make good the poor work. I made so many calls to Gain City and none of my requests were heard.... and I had to pay $75 so that they would make good an issue that was their fault for recommending wrong choice of material. This is a company policy. Not an issue with technician. I am building a 5000sqft house. Gain City took $75 from me but they will never earn the thousands that I am prepared to spend on air-conditioning the new house. I will also make sure that none of my friends who are building houses or managing properties go for cheapo Gain City for whom $75 is worth more than customer goodwill. Gain City will make money off the one time home renovators... but even then, word will spread.

Known for their workmanship? This is definitely surprising to me!! Maybe when the company was smaller and less arrogant, the workmanship was good. I used them recently and they were AWFUL. Here is my experience with Gain City http://petunialee.blogspot.com/2010/08/gai...-coolserve.html

I want to share my horrible experience with Gain City and my very good experience with CoolServe. http://petunialee.blogspot.com/2010/08/gai...-coolserve.html

QUOTE (Chanel26 @ Aug 19 2010, 02:20 PM) [remove - Reason - Soliciting] I want to share my horrible experience 18 months ago with Gain City... and my very good experience today with CoolServe. I recommend CoolServe and the 2 workers that came today to do my house. http://petunialee.blogspot.com/2010/08/gai...-coolserve.html

For air-con, installation is as important as the model. I want to share my horrible experience with Gain City and contrast it to my very good experience today with CoolServe. Please see my blogpost. http://petunialee.blogspot.com/2010/08/gai...-coolserve.html

Rummi and Philzero... many thanks!

Jeda, thanks for sharing! I don't know what my architect's concern is... I rather think the Clerk-of-Works should be employed by me, and not be part of the main contractor's contract... Mine is a small project as construction goes... less than a million. I will also be doing lump sum. So I guess I don't need a QS. I will remember to keep an eagle's eye on the costs.

Does anybody know the answer to my question please?

My architect advised against appointing a Quantity Surveyor. He also advised that the Clerk-of-Works be included in the Main Contractor's Contract. Are these common practices? What are the advantages and disadvantages of the suggested approach?

You mean like... heat stress it first?