GG Developments

*Building Contract Tips and Tricks* - When did Construction Commence?

In this series of posts, we will share the common oversights of Domestic Building Contracts and how to mitigate them.

Whenever clients or friends have been concerned with progress and how their Build or Development is tracking the first question we ask is "When did Construction commence?"

A pretty simple question but often goes unanswered until well into the build if the Commencement Notice hasn't been provided or contains the inappropriate information.

Did you know in the Master Builders Contract is actually a requirement for the Builder to provide one?

Clause 8.2 of the Master Builders Contract states the following:

Within seven (7) days after having commenced to construct the Works, the Builder must give a
written notice to the Owner. The notice must state the following:
- The Builder has commenced construction of the Works under the Contract; AND
-The date on which construction of the Works commenced (the actual commencement date) ;
AND
- The Construction Period (as set out in item 9.2 K of the Appendix) started to run on that
actual commencement date; AND
- The Completion Date, having regard to the actual commencement date and the
Construction Period.

This letter can also assist if an 'Extension of Time' or a 'Suspension of Works' is requested as well as providing clear milestones for the start and finish of a build.

Disclaimer: Guidance only, not a substitute for legal advice.

Do I need a Building Inspector for my new home or Development?

Firstly, let's distinguish the difference between a Building Surveyor/Certifier and a Building Inspector.

A Building Surveyor/Certifier provides approval of the works undertaken as part of the Building Permit and ensures their compliance in accordance with the National Code of Construction (NCC).

A Building Inspector is an independent person who inspects the quality of work. The common inspections are as follows:

- Waterproofing
- Internal Framing (without plaster board)
- Fixing Stage
- Pre-completion
- End of Defect Liability Period

Although a Building Inspector isn't mandatory, a good one can offer a level of assurance and peace of mind. Their opinion is often used in VCAT cases.

Disclaimer: Guidance only does not substitute legal advice.

*Building Contract Tips and Tricks* - Builder's Contract Works Insurance - Are they covered enough?

In this series of posts, we will share the common oversights of Domestic Building Contracts and how to mitigate them.

Builder's Contract Works Insurance, It's a requirement for a Building Permit and one of the conditions of the Contract. So if a Builder has $1m cover for a $1m Contract that's all good right?

Clause 6.2 of the Master Builders Contract States the following:
"Unless otherwise agreed in writing, the Builder will provide and maintain a current Contract Works
Policy. The insured sum shall be no less than the Contract Price plus 15%."

Therefore a $1m contract requires $1.15m worth of cover.

Prior to signing it is always good to check for this or to seek assistance from a competent professional.

Disclaimer: Guidance only, not a substitute for legal advice.

Our Step-by-Step Process

Step 5: Settlement

Just like in any Real Estate Transaction, this is the part where we settle and the sale is complete!

Although this process may take time, we do the hard work for you!

If you wish to enquire about our FREE appraisal for the sale of your back yard or even your whole house, with a longer settlement, please email [email protected] or send a message via Facebook Messenger.

Alternatively if you’re interested in your own Development, we offer a range of consultancy services to suit your needs and to tap into our year of experience.

Current Affairs - Global Timber Shortage

The world news has widely reported with the recent global housing boom and the recent fire disasters around the world, this has lead to a shortage in timber which has made supply scarce and prices to dramatically increase. This has mainly effected engineered timber.

This has lead to people coming up with creative ways to mitigate this. One of which is furniture.

Furniture can be used to divide spaces.

A well placed free-standing wardrobe could create that walk in wardrobe you always wanted.

A bookcase can provide the separation of a dining and living space as well giving you a place to store and display your favourite reads.

This could also be a way to implement second hand furniture.

These are just some of the ways GG Developments can help come up with creative solutions for your projects!

Our Step-by-Step Process

Step 4: The Development Process

At this stage you don’t have to do anything! (Unless you need to pack!) This step is where we start to get to work, just to provide an insight of the effort that goes into Developing a site before the purchase is settled.

A typical subdivision requires the following:

Site Investigations - Soil, Arborist etc
Land Survey
Appointing the Consultants - Architect, Town Planner, Estimator, Land Surveyor
Drawing up of Plans
Town Planning Application
Section 173 Agreement with the Council
SPEAR subdivision process

Depending on the complexity of the Development this can take between 3 to 12 months to complete and could cost between $30,000 to over $100k if you did this yourself.

Once the approvals are complete we come to the final step. Step 5: Settlement

Green Building: Chlorine Free Rainwater Pools

Considering your options for re-using rainwater other than flushing toilets or water your plants. Chlorine Free Rainwater Pools might be a consideration.

Rainwater Pools, in general, use Copper Ionisation (as used by NASA) and Natural Non-chemical Oxidation. Some pool companies offer a fully automated system for a low maintenance pool. This may be an alternative option for people who are sensitive to chlorine pools.

If you need assistance on your next environmentally friendly build or development, do not hesitate to contact GG Developments.

Our Step-by-Step Process

Step 3: The Contract

So we’ve agreed on a price and direction for the Development. We now sign a contract.

Compared to a traditional Real Estate transaction, Developers use Property Option Agreements prior to completing the purchase of the house or land.

What is a Property Option Agreement? It’s a legally binding agreement between you and GG Developments to allow us to purchase the house or land at a later date whilst we commit to investing in Due Diligence Checks, Consultants, Town Planning Approvals, Section 173 agreements with Council and the Subdivision Process. (Step 4 goes into detail)

A Property Option Agreement also means you will receive a non-refundable (that’s right it’s yours to keep!) option fee from us for entering into the agreement regardless of the end outcome. Disclaimer: Option Fees may be subject to Capital Gains Tax. Please seek independent Tax advice from a suitably qualified professional.

A Property Option Agreement is required for rear yard sales due to the new individual title not existing yet which is a requirement for the contract of sale.

The Contract of Sale is attached to the Property Option Agreement and follows on once the option is ‘exercised’ (This is Step 5!)

A typical Property Option Agreement lasts for 12 Months depending on the nature of the proposed Development.

If you have chosen to Joint Venture or provide Vendor Finance these agreements are drawn up at this stage.

Once all the contracts are signed we move to Step 4: The Development Process

Innovation: Smart Locks

As many landlords will tell you. Keys and Lock changes can be a tedious task to manage every time there is a change in tenant for a rental property.

A new shift for rental investors and developers is to implement Smart Locks. Many locks can use multiple codes for visitors or trades entry, be managed via an app on a smartphone and removes the need for a physical keys which often get lost or broken.

Will you consider this for your next development or rental investment?

Our Step-by-Step Process

Step 2: Title Review, Initial Offer and Negotiation.

You receive our initial offer…..now what?

We review the Title and discuss the offer in more detail and negotiate to suit your needs.

The initial offer is just a starting point and to provide you with an indication of what we may be willing to purchase your house or land for.

This is the stage where all parties can get creative.

Are you Downsizing but want to stay in your suburb?...We could provide you with a first option on one of the new homes or we can coordinate the design and build of your new downsized paradise.

Investment opportunities?...Vendor Finance or Joint Venture is a possibility.

Have the appetite to take on the Develop yourself but require some assistance?....We can provide consultancy services to suit your needs.

Once we have agreed with a direction and a price and there are no restricting covenants on the Title, we move to Step 3: The Contract

FAQ: Trees

Trees are obviously essential for the environment but can be problematic when developing a Site.

Not all trees can be removed. This is mainly due to species, size, planning overlays, listed trees and Council Local Laws.

These can significantly effect your development. Are Trees effecting your development? This is where GG Developments can assist with our Development Services.

Our Step-by-Step Process.

Step 1: The Desktop Review.

So you have kindly enquired about selling your backyard or house to us. What happens next?

We carry out a 'Desktop Review'. We review the all the constraints and opportunities your property could provide using specialist software as well as research the councils local laws.

At this stage we generate an idea of what works are required as well as an initial proposal for the Development.

This all forms part of the FREE appraisal

After this we move onto Step 2: The Initial Offer.......

FAQ – Minimum Driveway Width

A common stumbling block to a rear/backyard subdivision feasibility is not having three clear meters from the title boundary to the existing house for driveway access to the rear. The Australian Standards (AS2890.1) recommends domestic driveways are 3m minimum width but can also be subject to Council requirements and Local Laws.
If you’re interested in a Free Backyard appraisal or any of our Development Consultant services for your project, please get in touch!

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