Tender Documentation Preparation.

Discussion in 'Development' started by Hari Yellina, 19th Jun, 2018.

Join Australia's most dynamic and respected property investment community
  1. Hari Yellina

    Hari Yellina Well-Known Member

    Joined:
    23rd Oct, 2017
    Posts:
    483
    Location:
    Melbourne
    Hi All,

    We are building 2 Townhouses and 2 Units. We have finished the drawings working drawings. Wondering, if there is a consultant in Melbourne can help us with the Tender Document before we go for a quote.

    This is investment properties, we would like to hold them forever. We don't want to overcapitalize for the area neither build it cheap.

    Please suggest, any idea for preparing a tender document or any professionals out there can help us with the document.

    Thank you.
     
    San2018 likes this.
  2. DaveM

    DaveM Well-Known Member

    Joined:
    14th Jun, 2015
    Posts:
    3,761
    Location:
    Adelaide & Sydney
  3. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,380
    Location:
    Qld
    Plans change, life happens.
    Always consider resale when building, whether you think you will ever sell or not.
    Marg
     
    hobartchic likes this.
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    11,331
    Location:
    Perth
    Will you be self tendering?

    A lot of building brokers will assist with doing a specification document and tender for you if that is what you are leaning towards.

    It can be hard writing up a specification document if you've never built before as you can make it quite high level or extremely detailed down to specifying exact cupboard handles.

    I'm probably not much help from Perth but hopefully some Melbourne people will come along and let you know how they did it pre tender.
     
  5. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    Why not just detail the specs level to what the market wants and expects for the type of build you are doing. Then you can tender it out and if quotes are too high then you can work with the quoting builders to tweak items to get a balance of cost Vs what you must have included and what can be expended. It's usually always a tweaking process until you reach some happy middle ground of price and specs.

    Broad framework:
    https://www.aaarchitect.com.au/downloads/tendering-to-builders.pdf
     
    Last edited: 19th Jun, 2018
    lixas4 and Rowan like this.
  6. The_Billy

    The_Billy Well-Known Member

    Joined:
    19th Mar, 2018
    Posts:
    153
    Location:
    Sydney
    I create tender packs for a living but I do this for the purposes of procuring subcontractors, not builders. I work for a builder, so the level of detail required is a bit different. However these principles will still apply when going out to a builder as well.

    When outlining tender packs you only need to spend time on defining the;

    - Level of finish
    - Areas where trades over lap
    - Areas with potential for ambiguity - not show on drawings

    Very minor example for the tiling trade based on above 3;

    - Define what tile is to be used or a supply rate
    - Who does the silicone sealing around window and door frames
    - What height are tiles as the elevations might not show this

    You don't need to spend a million years writing up things like the tiler must mix their glue in this and that ratio, or they must install tiles straight or they must provide the necessary labour to install tiles. These are all basic expectations of workmanship and do not need to be defined and will be warranted by a professional. You only need to define the areas where there may be ambiguity or confusion as to who may be responsible for what.

    Very minor example while engaging a builder based on the above 3;

    - Who pays fees associated with service connections
    - Who does services search and site investigations
    - If there is an existing service is it to be re routed, if so by who
    - If not landscaping, who does the final leveling of surrounding site.

    You could even have a crack at this yourself. I don't know what your financial position is, but if you are like me and just starting out in the industry with limited capital, I can't necessarily afford to pay people for everything so I feel dealing with things like this is a good skill set to develop.
     
  7. Hari Yellina

    Hari Yellina Well-Known Member

    Joined:
    23rd Oct, 2017
    Posts:
    483
    Location:
    Melbourne
    This is our second construction, First one we are extremely happy. I want to make sure tender document is perfect for the area. We are building in Hoppers Crossing, VIC. don't want to over capitalize at the same time, we want the builder to provide certain brands we requested.
     
  8. Hari Yellina

    Hari Yellina Well-Known Member

    Joined:
    23rd Oct, 2017
    Posts:
    483
    Location:
    Melbourne
    I would like to specify the Bricks, Tiles, Air conditioner brands, Kitchen brands, some of the taps and door handles as well. I thought someone who does the tender specification, will have a better understanding, what is best in the market and how it will be cost effective at the same time not make it look cheap.
     
  9. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,035
    Location:
    Vaucluse, Sydney.
    You can get an interior designer to draw up plans with details of specs room by room of what you want. As long as you have a good idea of what you need, you can work with them to get this document done well. I like to have it so when the builders are tendering, they have a very good idea of the spec level you have in mind and you get a more accurate quote. Also when they eventually build, if there is a discrepancy in an item used, you have this document to say 'hooold on a minute there buddy.. lets look at page 5 of this document' .

    Not in my experience and I wouldn't be leaving that to anyone else. The developer should have a thorough understanding of the 1. The feasibility, 2, The stock/design he/she needs to build and 3. the specifications appropriate for the demographic and the numbers in the feaso.
     
  10. Hari Yellina

    Hari Yellina Well-Known Member

    Joined:
    23rd Oct, 2017
    Posts:
    483
    Location:
    Melbourne
    Thanks
     

Build Passive Income WITHOUT Dropping $15K On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia