Construction – Page 13

Delaying Progress Payments

So your builder has just made a claim for a Progress Payment . . . . . but you are not happy with the workmanship, or don’t agree that the Construction Stage is finished.

What can you do?

A lot of people would say “Don’t make the payment!” but it’s not quite as simple as that!

What The Contract Says

Here are some of the relevant sections from the HIA contract used in my last build.

A time limit for payment in days (Schedule 1.7* Will typically range from 7 to 10 days).
A rate for penalty interest if the payment is not made by the due date. (Schedule 1.8* Typically minimum of 15% per annum, calculated daily, but can be up to 25%)
The Builder has the right to Suspend the Works if not paid. (Clause 35*)

* In your contract documents the numbers may be different but you should find similar sections.

As you can see just not paying the payment could have considerable consequences.

Suggested Action

In my opinion it is better to try and avoid, or minimise, the above consequences.

Also in the event of future legal issues it is also best to be seen to be ‘Reasonable’.

My suggested actions would be to write to the builder (Not phone) as soon as possible stating:

That you do not believe that all the works comprising the stage had been satisfactorily completed.
Why you believe the works had not been completed.
Offering to pay 80-90% of the amount by the due date.

In effect you are only paying for the work that has been satisfactorily completed, rather than the whole claim.

This approach is more likely to maintain a cordial approach to your relationship with the builder while making sure they are aware that they need to ‘Lift their Game’.

See Payments for more posts

Using Your Own Building Inspector

I frequently hear of people being told by their Builder “You can’t use your own Building Inspector!”

If your builder says that, he is trying to Con You! ……or Breaking The Law!

Here is an explanation based on my last House Contract (HIA Standard Contract) . . . . . .

Possession

The builder does have ‘Control’ of the site see; Contracts – Site Possession.

But one of the contract clauses states . . . . . . “The OWNER or an authorised officer of the LENDING BODY is entitled after giving the BUILDER reasonable prior notice, to go on the LAND to inspect the BUILDING WORKS at reasonable times provided that such inspection does not delay or interfere with the progress of the BUILDING WORKS.”

Owner

A key element in the above clause is the word OWNER so lets look at how the contract defines OWNER . . . .

‘OWNER‘ means the person, partnership, or company named in the Particulars of the Contract and whenever appearing in this Contract includes their AGENTS, executors and administrators.

This means you can appoint anyone you want to act as your AGENT in the matter of inspecting the works.

Action

Don’t ask, write a formal letter to your Builder informing them that you have appointed a Building Inspector as your Agent.

If you find the builder has put in a clause in the contract saying you can’t use your own building inspector this is illegal. You can have that clause struck out. (see this link: Unfair Contract Terms)

To find out about inspecting a new house see

Practical Completion Inspection

House in “The Cloud” ?

It looks like it’s a house that Apple’s Steve Jobs might have owned.

No Surprise that this Melbourne House is known the Cloud House.

Certainly stunning from this view, but you would never know it from the street, as it’s actually a rear extension to an Edwardian House.

This photo is from the Homesthetic.net website where you will find some more photographs (Well worth a look. if only for the ‘Loud’ carpet)

For more Unusual House Photos, and Fails, have a look at: What the………………….?

Plumbing Acronyms

There are a lot of acronyms used on plumbing drawings so here are a few definitions:

AG – Agricultural (Drains)
B – Basin
Bth – Bath
BT – Boundary Trap
DP – Down Pipe
FW – Floor Waste
HWS – Hot Water Service
IC – Inspection Chamber
IS – Inspection Shaft (also IO -Inspection Opening)
ORG – Overflow Relief Gully
PRV – Pressure Reducing Valve
RRJ – Rubber Ring Joints
RWH – Rain Water Head
SHR – Shower
ST – Stop Tap
SW – Storm Water Pipe (or SWD – Storm Water Drain)
SWJ – Solvent Welded Joints
TR – Laundry Trough
VC – Vitrified Clay
VP – Vent Pipe (sometimes UVP – Upstream Vent Pipe)
WC – Water Closet (Toilet)
S – Kitchen Sink
SV – Stop Valve

If you have seen an acronym you don’t understand, then let me know, and I will try to give you an answer.

See Jargon for more posts

Building Certification Inspections

All house builds have to be inspected to check on their compliance with the Building Code of Australia.

These Certification Inspections used to be carried out by the Local Council. Nowadays there is no requirement for a builder to use any particular certifier so many builders choose their own private certifier.

There are a limited number of inspections as follows:

All Houses

After excavation for, and prior to the pouring of, foundations;
Prior to covering of the frame;
Prior to covering waterproofing in wet areas;
For the issuing of the Occupation Certificate.

Additional Inspections

If required the following will be added to the basic four inspections

Prior to pouring any in-situ reinforced concrete building element ;
After the construction of a swimming pool is completed to inspect the child resisting barrier has been erected.

Warning

These inspections are a confirmation that the building meets a basic level of construction. They do not inspect every element of your house and are not an indication of the overall quality of the build. (See Compliance not Quality for more information)

Insulation Basics – Double Brick Walls

I have previously carried out a worked example of the insulation of a Brick Veneer Wall, so as a comparison here is double brick wall.

I have also shown (in brackets) the effect of using a hebel block in place of one of the brick ‘leaves’:

Element	R value
Outside surface air layer	0.03
110mm brick	0.08
25mm cavity	0.12
110mm brick (*or 125mm Hebel Block)	0.08 (*0.81)
Plasterboard 10mm	0.08
Inside surface air layer	0.12
Total R value	*0.51(1.24)**
U value = 1/R	*1.96 (0.81)**

The heat losses or gains for 150 sq m (fairly typical external wall area) of this type of double brick wall at 15 degrees above, or below, outside temperature will be:

Area x ‘U’ x temperature difference = watts per hour

150m2 x 1.96 x 15degrees = 4410watts per hour

Heating/Cooling Requirement = 4.41kw/hour

Using Hebel for one of the leaves will improve the heat loss as follows:

150m2 x 0.81 x15degrees = 1822watts per hour

Heating/Cooling Requirement = 1.82kw/hour

Still not as good as the 1.17 kw/hour of the typical brick veneer construction

Don’t forget heat is also lost through windows, ceilings floors and ventilation.

See Insulation for similar Posts

For Posts about Green Building see Sustainability

Australian Standards

A lot of people people misunderstand how Australian Standards apply to Contracts so here is a quick guide.

Standards Australia

All Australian Standards (AS) are published by Standards Australia. which is a non-government organisation.

It’s role is to meet Australia’s need for relevant standards for quality in goods and services that are also consistent with international standards.

Individual Standards

Each standard is a document specifying how a product, service or system can be practically obtained safely, reliably and consistently.

Role of Standards in Law

Australian Standards are not ‘Legal Documents’ and there is no automatic requirement to carry out any work or service to an Australian Standard unless:

A Government Law, or Regulation, (Such as the Building Code of Australia BCA) requires that an Australian Standard applies; or
The Specification for the project states that an Australian Standard will apply.

Even where an Australian Standard is mentioned you will quite frequently see words like: “or alternative that is deemed to satisfy the intent.”

Summary

Just because you are building in Australia don’t assume that Australian Standards will protect you as they may not even apply to the contracted work.

To understand the role of the Specification see: Contract Documents

Protecting Underground Pipes

One of the problems that happen all too often during a new house build is that Sewers and Drains get filled with concrete.

Its normally happens on:

A knock down and rebuild project where the sewer connection wasn’t sealed during demolition.
A Battle Axe block subdivision where the new home is built close to the pipeline.

During the pouring of the foundations the concrete gets into the pipeline through the unsealed connection, or a cracked pipe, and then flows along the pipe.

Our company then gets brought in to remove the concrete using a hyraulic impact cutter like this.

Don’t think its cheap though . . . . . . It normally takes a team of three plus a high pressure jetting truck so the costs is upwards of $200 an hour, and its not unusual for one job to take 2-3 days.

To understand more issues when purchasing land see: Buying a Block

Understanding Builders

“The Builder is ripping me off!” and ‘The Builder is overcharging for upgrades!” are two comments I hear regularly. Some of these cries may be justified, but a lot are because the customer doesn’t understand the Builder.

Why A Builder Is The Same As Other Businesses

Profit

The aim of all businesses is to make a profit so don’t expect a builder to be any different. Its not that easy to achieve and if you follow the press you will see plenty of builders don’t, and go bust.

It is in your interest that the builder makes a profit. If the builder goes bust while building your house its likely to cost lots of money and cause major delays in completing your new house.

Marketing

Builders want to get customers in and then up-sell them. They do this by providing a keen initial price for a standard house. Once you have signed you find there are extra costs for: site works, nicer bricks, different roof tiles, trendy bathroom fittings, swish kitchens, etc,etc.

Of course the builders profit margins are higher on these extras. This is the builders cream. Make sure you understand as much of the costs as possible before you sign.

For much more information on choosing upgrades from the standard see my Selection Guide

Outsourcing

You hear a lot about big business outsourcing and builders are no different

The majority of new house builders outsource most of their work to sub-contractors. This may be to either smaller specialist suppliers or individual tradies. In some cases the sub-contractor may buy the materials then contract the actual work to a labour only subcontractor.

Why a Builder is Different to Other Businesses

Extended Delivery

Nearly everything you buy is made when you buy it. If it’s a car, or electrical goods. and you know its been built in a factory under tight quality control measures. You know no matter how hard you bargain it won’t affect the quality of the item you buy.

But it can take a year or more to build your new house. During that time the builder will make many decisions on who is employed during the build and what quality is expected. If you bargained the price down heavily do you think the builder is going to pick the better tradies or the cheapest?

Unique Product

No house is the same. Even for the same house design all the following can affect the build:

The topography (shape of thesite)
The type of soil
The weather during the build
The individual fitments selected

All this means that there is a lot of risk about the final cost of the build. To cover this risk the builder will want to ensure there is enough profit to cover any unforeseen circumstances, or have an out that allows extra costs to be charged to the home owner.

Have you had problems understanding your builder?

Retaining Walls – Gabbions

Gabbions are big wire baskets filled with rocks.

The baskets are typically available for retaining wall use in 1m x 1m x 2m units. and you arrange the rock fill yourself.

Gabbion walls can be described as a Permeable, Steel Reinforced, Low Skill, Dry Stone Wall.

Low Skill however doesn’t mean no skill so don’t just tip the rocks in. For best results the rocks need to be adjusted to pack them tightly into the baskets.

In my view the best looking gabbions are the square mesh ones like the photo above.

If appearance is not an issue then there are these standard units, on the right, that have a more basic mesh.

Although the wall is permeable and doesn’t need an aggi drain behind it I would still advise a layer of fine gravel. This prevents fine soil particles being washed through the gabbion, as has occurred in the lower section of this wall.

To know more about retaining walls follow this link: Understanding Retaining Walls