Rebuild Experience

[xienqi 3]

Hello all,

I posted this in another sub forum here and copied my post and repost here instead and I hope this would be more helpful.

First time posting.

Would like to share my experience with my house project with ID. I have a landed property and was looking for a minor reno which changed to A&A and now reconstruction. I am living in China and therefore this was made more complicated due to the distance and use of emails.

I first engaged an ID to start wit. The first sign of trouble was the first agreement which was provided by the ID. The agreement was one sided written in complete favor of the ID. I proposed using a RADAC agreement which the ID agreed. Then the ID sent me the RADAC version with her prices inserted. It was a good thing I read the agreement because the ID amended major parts of the RADAC agreement in favor of the ID. I objected and stated we should stick to the original wordings of the RADAC agreement. At the end, we used the original RADAC version but now the ID attached the quotation with a contradicting set of terms and conditions. Again it was fortunate that i read the final version and amended accordingly.

I should have known something was wrong with the integrity of this ID then but for the sake of time, I continued with her. When I decided to change the scope from a reno to an A&A, I asked the ID to recommend her architect and engineer. Her recommendation gave me a quotation of 74K for the standard work scope of architect and engineer for an A&A job. I decided to check around and got 2 other quotes, both of which came in at 25K, and their work scope had additional items included as part of the 25K.

In between, there were dissatisfaction with the quality of the drawings and her availability and at the end, I terminated the ID services by serving notice and asked for refund of my money, an amount of 7.4K out of 9.9K paid. This is catered for in the RADAC contract which states that cause must be given for termination, and work already done to notice of termination date to be paid.

The work done then by the ID was for about 15 drawings of which some of which was hand sketched, and also not drawn to scale. The drawings were revisions of the 2 initial versions. For your information, the agreement was signed in Sept 2012, and I terminated the ID in March 2013, and the house project as of today has not been started, other than the architect design and approvals, all done by the architect and engineer.

The ID did not refund me the money and claimed that she had done work that is worth about almost 9K based on the drawings.

I am now seeking legal recourse to get my money back. I also went to CASE which was a complete waste of time because all CASE did was send 2 letters to the ID and acted as a postbox for me.

Lesson Learned Here.

Always read your contract / agreement and ensure the T&C are fair and balanced, not in favor of either parties.

If one party is seen reluctant to change or acts in a underhanded manner, drop the deal immediately.

Always check your quotations prices. Make sure you are able to benchmark.

Do not assume word of mouth is good, always check and double check your contract.

As I am seeking legal means to get my money back, I will not reveal the ID name but you can send me an email.

Also, for those who need more information on the process, parties and cost involved in a complete reconstruction of a landed property, I will be more than willing to help.

[xienqi 3]

Continuing on.

I decided to go for rebuild vs A&A because A&A would constraint the build up floor size due to the restriction on the existing structures. The most important restriction of A&A would be the ceiling height. You would not be able to achieve a high ceiling based on the older house designs in the before 90s. You will also be restricted on the building swimming pool due to the existing location of sewer piping.

The main reason for going with full rebuild is really to increase the build up because the value of newly build landed is in both the land size and and shape, and more importantly the build up.

A good rule of thumb is 250 psf for the build up space for rebuild costing, and time period from contract signing to TOP will be 8 to 9 months. A&A would normally be about 60 to 70% of the rebuild cost and take shorter time. This does not include basement. Normally basement construction will cost alot more. Swimming pool surprising does not have a large impact on the overall cost, about 50K. The real cost is in piling vs footing and quality of materials used. If you are taking a construction loan and then remortgage your house when its completed, then it is very important that you lock down in your contract with the builder on the handover date to be based on TOP or CSC certification. This is a critical cost depending on what your bank accepts, because the loan conversion is dependent on the certification. Construction loan is at 5% vs mortgage loan at 1.5% interest.

A good PE and architect is super super critical for the owner in terms of timely and correct building approvals, cost estimation, project control and contract management. IDs are not in the same league as the PE and architect. Do not go through an ID for a rebuild. Deal direct with the PE ad Architect, the contractor and if you have an ID, then also direct dealing would be the best way.

Doing a project like this would require your personal time and effort, and also you will need to balance the relationships between all parties, not to speak of your neighbours also. You will need to work with all parties in a amiable manner if you want your house to be completed on time and on budget.

[xienqi 3]

To clarify my earlier email, CSC can take 6 to 9 months after TOP. So if your bank only accepts CSC, this will mean you will continue to pay 5% interest until you get your CSC. This is a big cost item. Also the legal fees to disburse the construction cost is not cheap, 5K at least.

[fcar 0]

Continuing on.

I decided to go for rebuild vs A&A because A&A would constraint the build up floor size due to the restriction on the existing structures. The most important restriction of A&A would be the ceiling height. You would not be able to achieve a high ceiling based on the older house designs in the before 90s. You will also be restricted on the building swimming pool due to the existing location of sewer piping.

The main reason for going with full rebuild is really to increase the build up because the value of newly build landed is in both the land size and and shape, and more importantly the build up.

A good rule of thumb is 250 psf for the build up space for rebuild costing, and time period from contract signing to TOP will be 8 to 9 months. A&A would normally be about 60 to 70% of the rebuild cost and take shorter time. This does not include basement. Normally basement construction will cost alot more. Swimming pool surprising does not have a large impact on the overall cost, about 50K. The real cost is in piling vs footing and quality of materials used. If you are taking a construction loan and then remortgage your house when its completed, then it is very important that you lock down in your contract with the builder on the handover date to be based on TOP or CSC certification. This is a critical cost depending on what your bank accepts, because the loan conversion is dependent on the certification. Construction loan is at 5% vs mortgage loan at 1.5% interest.

A good PE and architect is super super critical for the owner in terms of timely and correct building approvals, cost estimation, project control and contract management. IDs are not in the same league as the PE and architect. Do not go through an ID for a rebuild. Deal direct with the PE ad Architect, the contractor and if you have an ID, then also direct dealing would be the best way.

Doing a project like this would require your personal time and effort, and also you will need to balance the relationships between all parties, not to speak of your neighbours also. You will need to work with all parties in a amiable manner if you want your house to be completed on time and on budget.

Hi. V interesting reading your thoughts and processes.

I got 2 questions ,if you dont mind:

1. Construction cost of $250 psf. Does this refer to GFA strictly, or just "built in"? This can vary the cost quite wildly as i am sure you would know. $250 psf for GFA is cheap for current standards, almost impossible nowdays. GFA does not include things like car porch, patio, balcony, pool. A lot of builders include these, and use the term "built in" or "build up". URA only recognises GFA.

2. Your pool costs only $50k? Mind revealing what are the dimensions? Eg 10m by 3m? Does it include cost of the service equipment, eg waste, pumps?

All in, i would say you got yourself quite a good deal, especially if the $250 psf is for GFA.

Edited May 18, 2013 by fcar

[xienqi 3]

Hi,

The cost is based on GFA as confirmed by architect. Contractors are quoting against the approved bca submissions.

Pool is about 12m by 3m. Width does not include the apron. Just enough for 2 persons swimming in parallel. Costs include all equipment. The cost being low is because its done together with the rebuild. If you do it alone which my friend did for her house, it costs about 150k.

Note however 250 psf does not include professional fees and provisional sum but include gst.

It is important to keep architect and contractor separate. Those one stop shop may be good for convenience but i have another friend who did his house total rebuild at a cost of 1m budget but over run to 2m. On top of this, this architect and contractor is a friend of his. However, my friend did make changes during the project and project cost and time over run was really bad.

His advise to me is separate architect and contractor, otherwise expect alot of VO for your project.

[daphne17 0]

Can a house which is planned to be torn down completely be applied for "Reconstruction". I understand that recon does not require a bomb shelter but new erection does. So there's savings. Thank you.

[yoongf 11]

Tear down and rebuild is "reconstruction" and does not require HS.

New erection is about redevelopment.

[peterng 1]

I have successfully demolished the entire house without the need for a household shelter, all cleared by SCDF. If anyone is keen to know more, you can PM me.

Regards.

[sharon 1]

Hi Peter Ng,

I was just browsing through the posts and found your post on Home Shelter very interesting. I did A & A but had the contractor messed it up and so now I may have to re-do the house.

I was checking with some contractors and they were saying for reconstruction home shelter is not required but for new erection home shelter is required.

Please is it possible for you to let me know if yours was a reconstruction or new erection and if you could do away with Home Shelter.

Also, if you have an architect to recommend I would be most grateful.

You can also email me at sharanya@outlook.sg.

Thanks so much.

Sharon

Edited March 30, 2014 by sharon

[nerrad 7]

SCDF has the final say to whether or not a household shelter is required for a reconstruction project. It is part and parcel of the submission process for the QP/Architects to consult the SCDF to confirm whether or not a household shelter is required for that particular project.

Edited April 15, 2014 by nerrad