If we had £1 for every time we heard this, we would be rich by now! It makes us particularly wary when we hear a developer say this.
Why? Simply because it is never ever true and is a strong indication that they are repeating what their contractor and/or construction team has told them. Far be it from us to rain on their parade, but invariably this is a strong indicator that we’re all in for a bumpy ride.
When a developer has been told that their build quality is so good they are unlikely to have many problems it does a couple of things:
It tells them something they very much wish to hear.
It also set’s unrealistic expectations.
If we have been asked to provide our Quality Assurance Inspection then we get to see before anyone, the true condition of each plot. If the developer’s prophesy is accurate, we may find 2-3 minor items per plot, and that would endorse their optimism beautifully.
If we average 30 snags per plot (or worse) then everyone has a problem and this should be the developer’s wake-up call to halt proceedings, take stock and agree a programme that will ensure no purchaser takes occupation until every snag has been addressed.
If we aren’t providing our QAI service, then usually we discover that there are problems in the first week following legal completion. Our Occupant portal will shift into overdrive as occupants report the snags they have found in their first few days of occupation. This is the worst way to proceed as the damage is now done and will have damaged the relationship we wanted to have with the homeowner – possibly for the remainder of the Builder’s Rectification Period.
The cost to the developer of correcting snags quickly can often be the reason why, they are not. It is entirely dependent on these factors:
Is your contractor still trading (the current failure rate is the highest ever)
Does your build agreement commit them to dealing with snags?
Does the same agreement have penalty clauses should they fail to meet their obligations in this regard?
Increasingly we find that the developer is having to put their hand in their own pocket to fund the snagging programme, and this can be high. To look at a typical scenario of a scheme of 100 plots with an average of 30 snags per plot – that’s 3,000 snags. Let’s say each snag has an average ‘making good’ cost of £25. That’s a snag bill of £75,000 which is no small change. And the added frustration is just how long this takes to complete – it should be within 30 days (max.) … we’ve often seen over a year. This just takes what is already a really bad situation and makes it even worse.
To fully appreciate the scale of the snagging issue, look at our latest data: www.afterbuild.com/dna-of-a-defect.
It’s not unusual to find a developer website which speaks in glowing terms about their attention to detail and care for the customer. Yet if that were entirely true, surely, they would move heaven and earth to guarantee a perfect product before handing it over to the purchaser – wouldn’t they? It's all about Quality Control.
So, something far bigger and unwelcome must be getting in the way that disrupts the best of intentions. And that can only be financially driven. This is the most likely scenario:
The build programme develops some additional hurdles (many possible causes)
This delays the release of early completions
Which in turn delays the planned receipt of much needed income
Add to this challenging market conditions
Maybe also some bad weather/or materials delay/or contractor problems
Quite quickly a couple of things occur …
The programme must be ‘trimmed’ - compressing it to bring forward sales (and much needed cash)
Overheads maybe trimmed too, which often requires a budget sacrifice … after care is a regular candidate!
We understand how this occurs, and it may get a developer out of a bind, preserving or releasing all important cash to get the business through a sticky period. But ultimately it is false economy, because money saved up front, gets spent many times over in the ensuing months.
This is not ‘bash a contractor’ time. There are some excellent construction businesses who genuinely invest a great deal of time and interest in making certain the quality of the finished product. Sadly though, there has been an increasing number who don’t share that vision and who can’t getaway fast enough. Once a contractor has left site, it is much harder to get them to return (and for free).
How to avoid this dilemma!
Firstly, it is now accepted that if ever there was a time when construction and design was less complex and consumer expectations much lower, that ‘fly by the seat of your pants’ after care has drawn to a close. House purchasers are a modern breed of consumer with firm views about what constitutes good service. Their expectations are the highest they have ever been, and they know how to exploit social media should they feel justified in complaining.
In accepting this unalienable truth, it must follow that a budget must be set aside and protected to provide the ability to deliver 2 years after care that will satisfy the homeowner, your warranty provider and any other industry code under which you may be affected. Understand that it is the attention you give to the last 1% of the build that will make the first 99% a great success.
Do NOT take at face value the word of your contractor or construction team when they say – “all is finished, and they are terrific”. It’s not their reputation on the line at the end of the day – but it is yours, so you must make sure that each plot lives up to their proud boast. Put some of your budget into providing a thorough quality check of each plot and make sure that the contractor then addresses every snag you find. Do not let them leave site until all snags have been addressed. Then check for yourself that indeed, every one of those snags HAS been addressed – again, see for yourself, don’t just accept their word for it!
To achieve these points, you must have a well written ‘build agreement’ with your contractor that spells out in unambiguous detail what you expect of them in terms of snag resolution and after care. This must include SLAs such as length of time to respond, to provide an appointment, to attend and resolve the issue. And what will be the overall defects term … 3 months, 6 months, 12 months??? Give yourself enough time to make this work too – it’s just not possible to cram it all into a few days and expect a great outcome because it won’t happen. Here’s a suggested budget and plan.
Summary
In 20 days and for £1K per plot you can protect against the worst of outcomes.
Check the build quality
Check snag work has been addressed
Provide a professional home demonstration
Provide 2 years after care and out of hours emergency cover
… that is not so hard to plan for, so why wouldn’t you do it? And then make sure that NOTHING is allowed to get in the way of delivering the programme.
Who benefits?
The developer benefits, because the final product quality has been assured, rather than merely promised by a contractor seeking to get away as quickly as they are able. This means that problems over the 2 years following are far more manageable and homeowner relations the best they can ever be. Ultimately, it’s all about saving you money through the avoidance of complaints and the reputational damage that always creates. It will cost you £3 later to save £1 now!
And the purchaser benefits, because they get a beautifully constructed and fully finished property that sits well with the expectation a developer’s marketing creates.
After Build – the UKs leading provider of fixed-price after care. www.afterbuild.com
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