"Risks associated with home building"
In order to present an acceptably low total cost to clinch the project, the contractor may have omitted certain items, or quoted for low-end products. A layperson or new home-owner may not be aware of these ‘strategies’. Even if the lists have been itemised, not many people are able to tell what is missing. So unless it has been specifically disclaimed, the home-owner must be prepared for risks such as additional or ballooning costs during the building process.
The danger of an overblown budget can be mitigated – do not fix the budget first, and then look for a contractor who can provide the products and services you desire within this budget. A builder with rudimentary knowledge and a great hunger for the project can easily put together a written contract to build your brand new house for as little as $300,000. You can then expect him to inform you – frequently – of the additions which are essential, and must be paid for throughout the building process. The home-owner often feels trapped, but may not be in the position to say no if the alternative is to break the contract. (Some have done so and gone on to appoint another contractor.)
But don’t take our word for it – because chances are, you have friends, or friends of friends, who can inundate you with harrowing tales of being held ransom by contractors, or new homes which literally fall apart after a short time.
Believe us when we say that the low initial costs will multiply over the longer term – through maintenance and replacement expenses. The building industry is fond of its own insider joke – ‘either pay upfront or pay in instalments, via repair bills’.
