Avoiding building project nightmares
Tips for property owners
Building projects often begin with inspiring visions of a dream home or investment, but for many property owners, the reality can quickly unravel. Costs escalate beyond initial quotes, deadlines stretch endlessly, and once committed, walking away is almost impossible. Even after completion, problems may linger, with poor workmanship sometimes only surfacing months or years later.Short-term insurers are often called in when damage appears, but many claims are rejected if the cause is traced to substandard work. For homeowners lacking technical expertise, spotting a contractor’s shortcuts can be difficult. While municipal approval ensures compliance with regulations, it does not guarantee quality. So, how can property owners protect themselves?
Avoid the cheapest quote: Low bids may hide exclusions or rely on inferior materials. A reputable contractor provides a detailed, line-item estimate. Always compare like-for-like.
Vet contractors thoroughly: Check credentials, request references, and speak to past clients. Visit completed projects if possible, and confirm registration with a recognised building body.
Insist on a detailed contract: Handshake agreements leave you exposed. Contracts should specify the scope of work, timelines, payment schedules, materials, and penalties for delays or poor standards.
Supervise or appoint oversight: If you cannot monitor the work yourself, hire a professional project manager or clerk of works to track daily progress and check compliance.
Arrange independent inspections: Regular site visits by a qualified engineer or building inspector can catch issues early before they become costly.
Keep records: Maintain a paper trail of all correspondence, signed change orders, and photographic evidence of progress. Documentation is invaluable in disputes.
Check material quality: Some contractors cut corners with substandard supplies. Ask for proof of purchase of key materials and verify with suppliers.
Demand warranties: Reputable builders back their work with guarantees. Know what is covered, the duration, and the claims process.
Consult your insurer early: Engage with your insurer before construction begins to clarify coverage and documentation requirements. Some insurers offer pre-construction inspection services.
Ultimately, a building project should be treated like a business investment. Diligence at the outset - through careful vetting, clear agreements, and independent oversight - can save significant financial loss and years of regret. Attention to detail upfront pays dividends long after the last brick is laid. (Article abridged)
* Johannes Hesekiel is the General Manager: Sales and Underwriting, Old Mutual Short-Term Insurance.