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Review Construction contract

Discussion in 'Development' started by Leo2413, 23rd Jul, 2015.

  1. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Hi guys,

    Does any one use a quantity surveyor to look over the construction contract to make sure its all OK before you give the final signature?

    Thanks in advance.
     
  2. Jessproperty

    Jessproperty Well-Known Member

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    If it is a larger development then yes I would. Have you received quotes from different builders to compare as well?

    Might be worth to find out if your council requires a Construction estimate, it is usually if the development is over $500k but every council is different.

    We did a development in our council that was $1.1mil and they didn't ask for an estimate with DA.
     
    Last edited: 23rd Jul, 2015
  3. OC1

    OC1 Well-Known Member

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    What's the build?
     
  4. sanj

    sanj Well-Known Member

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    what have you done in the past for previous developments?
     
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  5. Be Developer

    Be Developer Property Developer Business Member

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    Depends on what you want

    Quantity surveyor can be good for large project and can look at bill of quantity, if your applying for commercial loan.

    If you want to know your rights and obligations under contract, best to contact lawyers.

    If you want to know what's included or not, get one of expirenced developer to get a second opinion.

    Hope this helps!
     
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  6. Reindeer

    Reindeer Member

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    I am not an experienced developer but I've a QS report for the development that I am working on. I can only attach part of the QS report due to privacy issues but hope this helps. I needed the QS report for the DA submission and it is also required to apply for the construction loan. I believe you need a solicitor to review the construction contract.
     

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  7. Leo2413

    Leo2413 Well-Known Member Premium Member

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    @Jessproperty, sanj,Oc1, Be Developer: Its a duel occ development so not a large project, We have gotten a fair few quotes and we have pretty much chosen who we are going with. This is my first project that I'm going completely solo so I don't have the luxury of a business partner I worked with in the past who was great at attention to detail. So I'm a little more nervous. Yeah I might get a solicitor to have a look at the legals and my building broker to go over the details with me to make sure its OK. Thanks for your feedback guys. I appreciate it!

    @Reindeer: Thanks for sharing that QS report mate.
     
  8. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Thanks Jess. Yeah this council requires a QS estimate for construction over 750k. i'm just under! So they just require a Description of Cost.
     
  9. OC1

    OC1 Well-Known Member

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    You don't need a QS. Just be alert.
     
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  10. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Thanks! Trying my best. I'm much more confident with simple property investment than development as it requires so much more skills than just buying an ip! Bought the land at a perfect time though so it gives me a little more breathing space for margin, not that I want to waste any of it! :)
     
    Last edited: 23rd Jul, 2015
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