Becoming an owner and builder can look like an attractive option for many people who want to build a home in Melbourne, Victoria. There is something truly appealing about running the show, being able to choose which design elements to invest your precious money in, and—even worse—actually saving some cash too. But, at the same time, there are multiple challenges involved in this path. So here are some of the good and bad things about being an owner/builder in Melbourne.
Owner/Builder Pros
Cost Savings
Perhaps the most significant benefit of being an owner/builder is the possibility of saving costs. Do It All on Your Own: You won’t need a licenced builder who sometimes adds their own markup to your project for the tasks. This can be especially useful in a city like Melbourne, where construction is expensive. You can opt for low-cost materials and techniques as well to reduce the subsequent building costs, such as modular and prefabricated construction.
Complete Control Over Project
As the owner/builder, you will have a complete and final say in all aspects of the project. What factors does it include? (e.g., design, materials, schedule) This level of control enables you to make decisions and adjustments as the project develops in real time, making sure once completed it matches your vision perfectly. And what is more, as I mentioned earlier, you can make a very personal investment in the design of your home because you will have control over every single detail.
Learning Experience
Doing an owner/builder project can be a great learning experience. It will also mean gaining a unique insight into the entire construction process, project management, and how to overcome problems. Companies that are providing “all in” service have more knowledge on everything that can happen on projects in terms of permits, potential delays, cost changes, or any additional paperwork
Satisfaction and Pride
It can be both a proud and satisfying achievement to successfully complete an owner/builder project. There is something to be said about the fulfilment you get when your dream becomes a reality, and you had some part in making it happen.
Owner/Builder Cons
Time Commitment
Construction project management is a full-time job. You will have to spend a fairly substantial quantity of time planning, coordinating, and overseeing the work yourself as an owner/builder. All of how demanding this might be, especially when you have a full-time job or family chores in hand. Another thing that might affect optimizing your time per project is experience – companies that have been in the construction business for a long time are already aware of all slippery slopes, paperwork, permits, deadlines, follow ups, and project management challenges that might appear.
Most of the time, it is more productive and cost-saving to hire a company with an “all-in” approach (architecture, construction, and project management included) that will figure out the project in a proper timeframe and stay within a budget, than try to do things on your own and “learn from your mistakes” – which can be unbearably costly in construction business.
Cost Overruns
Even though there are opportunities for savings, the risk of cost overruns exists. As explained, you’re going to run into unforeseen costs and delays that you wouldn’t if you had an experienced, licensed builder. It may even outweigh any initial savings since the ongoing construction costs are becoming more expensive. Any extra day in construction might cost you a thousand dollars, and it is inevitable that there will be unforeseen situations.
Some companies are providing a guarantee that you won’t spend over a certain amount, even if unforeseen costs occur – which is the safest option while constructing in Victoria.
Complex Regulations and Permits
The building industry in Melbourne is governed by a lot of strict regulations as well as the permits needed. This can all get a bit overwhelming for an owner and/or builder trying to navigate this vast landscape. Most local building codes must be followed precisely, and obtaining permits is never fun or easy. Sometimes, you might think that all the paperwork has been done properly, and one tiny detail might bring days or weeks of additional paperwork before the permit is granted. Keep in mind that professional companies have been working closely with institutions, so they have already established relationships with some of them and are more credible while asking for quick updates or permits.
Quality and Safety Concerns
Builders licencing means quality work and safety standards delivered by time served experience. As an owner/builder, you generally won’t have the benefit of this knowledge and experience, so that can result in inferior quality work and, at worst, unsafe building practices. The good news is that by working with a professional such as Architest, the risk of this happening can be eliminated, as they will coordinate and guide you through these things.
Liability and Insurance
As the owner/builder, you will assume full liability for this project. It will also need to account for any accidents or injuries that occur on the premises. While it is essential to be appropriately insured, owners/builders have found this harder and more expensive than it would be for licenced builders.
Owning a building in Melbourne, Victoria, as an owner/builder is a one-time choice to aid you in taking control of your composition, work, and spare space. Today, the opportunity to develop and create value through solar plants is substantial, but so are the time required, the risks of cost overruns, and the complexity of permitting, on top of a slew of other factors. Carefully considering the pros and cons and talking to experienced professionals will allow you to make an informed decision that is in line with what’s achievable. Either way, whether you go the owner/builder route or decide to hire a licenced builder, if you don’t know what is involved in every single step of the process, it can and will be a disaster.