How To Identify If Your Builder Is Riping YOU Off

You've got to make sure you know what you're paying for. A good, reputable builder should have no problem with someone doing research and groundwork on them. They've got nothing to hide. Make sure that you're comfortable with what you're signing and you understand what you are getting very thoroughly by doing that early groundwork. That's definitely going to assist you in making that right choice. Avoid potentially getting ripped off from your builder.

Hey, guys, welcome to the Builder's Edge.

I'm Norm Wales from Norm Wales Constructions. Now, for me, the whole purpose of this podcast here is to bring a little bit more awareness around the construction industry. I've been feeling for many, many years that there's not enough helpful information out there to support you guys to make the right choice. Now, we are a smaller family, independent building company, and we're not here to build everybody's home, but we would definitely love to be able to work with you to facilitate your dream home. But if we don't build your new home, we want you to be able to make the right decision in choosing the right builder for you. So hopefully the information that I'm able to provide through this podcast can be informative and helpful that you can now create your dream home. So hope you enjoy and thanks for watching.

Norm, how can someone identify if their builder is ripping them off or if their builder is cutting corners on them?

Yeah, good question. That they're like, it's can be challenging, you know, like, to be truthfully honest with there, but I believe it really does come back to that open line of communication. You know, like, there has to be that element of trust and rapport that must be established between all parties involved there. You know, having that, that rapport and being able to break down any of those potential barriers that might be there in the early days and just, you know, having that transparency there with them, you know, you know, should mitigate a lot of that. But, you know, if your builder is being a bit vague around specific topics, you know, not really wishing to disclose certain information or becoming, you know, a bit more forward in sharing stuff there with you, you know, that could be a bit of an early telltale signs that maybe, you know, they're, you know, maybe trying to put a little bit of a swifty over you.

Are there any common tactics or practices that unethical builders might use to take advantage of homeowners?

Look, I don't think, you know, builders are out there to deliberately do the wrong thing. I like to think on the positive side of that, you Know, like, I know there are ones that like to play around that red line a little bit more than others. But, you know, yes, some of the, some of the ways that they conduct themselves and do things that are very unethical and it can lead, you know, it can be very misleading there and it could just be simple things of, you know, putting things into their contract or proposal at. That's not quite worded very clearly and they think they're getting what they're getting. They ask that question, oh, yes, I'm getting this. And they get told, yes, but it's actually not really in the detail of writing. And I've. I've unfortunately witnessed this. I was, you know, several years ago, we were constructing this home and we had a, I guess you could say a competitive builder building next door and lovely elderly couple. You know, they'd talk to us each day and over time we got to know each other very well. And unfortunately I felt I was more, yeah, being a liaison with them to mitigate the problems they're having during their build. Wow. And I was more than happy to facilitate and answer their questions, you know, because it wasn't pretty. And there's certain things like there were. It was a septic system that was actually had to be installed on their site there and they specifically, you know, requested a Pacific brand, you know, a concrete tank and these sorts of things. And it was then written into their actual contracts, you know, obviously to put a septic system in place, but not in the wording of what was discussed, you know, and agreed to. And they end up getting a, you know, a plastic, you know, tank put in where they believe it should have been concrete. And then instead of having a, a nice grassed soakage area, they end up just having sprinklers on top. So it was obviously in the wording and you know, they'd actually spoken to their builder in regards to this and then they will assured, you know, that's what they were going to be getting. And I still went against the grain and done the complete opposite there. So, you know, very unfortunate, you know, that that sort of things do occur.

What are some other examples of that?

Look, it is more common than not, but, you know, it's really important that I guess things are documented in the contract. You know, it could come down to tapware selections, you know, tiles, you know, all sorts of elements in the build. You know, there's not just one sort of specific area there. And you know, I've had other people come to me in the past there and you know, mentioned that, oh, me builder never allowed for a letterbox, but now it wants to charge me X amount of dollars and this is thousands of dollars for a letterbox that might have cost them $300 or $500. So it's about sort of getting shortchanged and ripped off there because something so trivial wasn't really necessarily allowed for in there. And it's got overlooked because you're more focused on those bigger areas. And now, because it wasn't allowed for there, now they've sort of been stitched up and, you know, charged.

So what's, what's the lesson in that for people to take away? Is it don't get caught up in, in the sort of big ticket items? It's a focus on almost every micro detail.

Look, it's definitely something. It's not just the little details, all the big details there. It's about having that relationship and connection with your builder, most importantly. And that's the communication sort of aspect of it there. But, you know, it's important that everything in the actual building proposal and contract is, is very clear. It's either yes or no, it's included. You know, it's very black and white and you've got to be able to go through that there and easily understand what you physically are getting. So then there's no surprises from that there. Quite often it's, you know, that process could be rushed through because if people are excited and they thought they've got this great dynamite price that sounds too good to be true, it's because there's missing parts to it.

So is that a telltale sign that if, if prices are too good to be true? It's like, well, maybe let's slow down for a moment here.

And it looked, you know, it's one of those things that you've got to make sure you know what you're paying for, you know, and if people aren't digesting that information and fully understanding that they can be setting themselves up for hidden surprises.

So how can homeowners verify the credentials and the reputation of a builder before committing to a project? What are some strategies for that?

The best way for a customer to find out if their builder is reputable or can facilitate their pacific building itself? There is to actually, obviously, first of all, they're engaging that builder and having that conversation. But then start talking to their suppliers, their contractors, ask around about that builder, specifically talk to the lending institution, the brokers, you know, anyone that could be affiliated in that sort of networking group, you know, with them. And get that feedback there. And don't just stop at 1 or 2 or 3. Get a few handfuls of people like it's a lot of money that they're investing, you know, so you're gonna make sure they make that right decision. And you know, a good reputable builder should have no problems with someone doing research and groundwork on them if they've got nothing to hide.

Absolutely. Can you explain the importance of setting clear expectations and milestones in the construction contract to avoid disputes?

Yeah, most definitely. Like setting clear expectations is critically important and that comes back down to the communication thing again, like if everything is communicated thoroughly and everyone's on the same page, like how we give a full detailed workflow schedule before we even start the project there from start to finish, so then they know where those milestones are. It just helps keep everyone on the same page and it makes it an enjoyable experience.

So during the construction process, how should homeowners handle cost overruns or unexpected expenses? What are some ways for them to approach these difficult parts of the construction process?

Yeah, look, the best way to approach any unforeseen circumstances and cost overruns there. It's always nice to sort of build some form of a little contingency in to your overall build. You know, if that happens to be 5 or 10% of your construction price or you know, might be, you know, five or $10,000. Like, it's just always good to have a little nest egg there because things can arise. Like something that builders aren't going to be able to foresee is like for example, excavation of rock, you know, so yes, you get tests done and you know, you sort of use those tests to sort of gather reports and things, but you know, they are still only a guidance indicator, you know, so if you start requiring to dig, you know, very lengthy power trenches in play, or have concrete septic tanks you dig in 3 meter deep holes, you could be unlucky to come across some rock there. But generally speaking, you know, that's not going to cost you tens of thousands of dollars. But you know, it's nice to have a couple of thousand dollars in the bank for the what if situation. Like it's very rare for that to occur. And if a builder knows the area pretty well, they can advise you upon if they think that's actually going to be something that, you know, could be, something could happen. But you know, generally speaking there, like if you can sort of give yourself a buffer zone there to use in case something arises because things do happen, you know, there's you know, no hiding that there. But it's a matter of trying to minimize those risks the best you possibly can, and that generally is done by open, honest communication.

Yeah, I love that. So it sounds like open, honest communication having some form of a buffering place. Is there anything else that you think you could you share right now? Just as a final bit of advice to help owner homeowners protect their interest in building, but also protect them against potentially a bootstrap builder who might be taking them for granted.

Yeah, look, the best thing to protect yourselves there, you know, would be to make sure that you're comfortable with what you're signing and you understand what you are getting very thoroughly by doing that early groundwork. That's definitely going to assist you in making that right choice and avoid, you know, potentially getting ripped off from your builder. Love it.

Before we wrap up, I have one more question for you.

Okay.

And we'll get that from the jar.

The get to know your norm jar.

Let'S say.

See if we can pick a winner here.

Norm.

What's the most meaningful compliment you've ever received and why did it resonate?

Okay.

Look, I'll just go back to something that was only recently.

I just handed the home over, and.

The owners, you know, had a bit of a, you know, get together some friends and family, and they said, oh, make sure you do this and make sure you do that. You know, check this very thoroughly. And the. The lady actually turned around and said, oh, look, we don't have to worry about doing that there with our builder. And turn around. Why is that? And goes. I'm pretty sure my builders got ocd. He's pretty particular and thorough with what he does.

So, look, I took that as a.

Quite a big compliment there. You know, we are very, very thorough with what we deliver and take a lot of pride in everything that, you know, we build and construct there. So, you know, to have, you know, that sort of feedback there from a customer.

You know, obviously shows the attention to detail and the effort that we put in there. And so, yeah, like, I was, yeah, quite chuffed to, yeah, be put up there with someone that's, you know, got ocd. That's very particular. So, yeah, I'll take that one, love.

It makes sense.

Well, thanks for your wisdom and your.

Insights as always on.

All right, cheers, mate. Cheers, mate.

It.