Stages of a build process.
👉1. Build Deposit
Understanding the build process is crucial for a smooth journey in property development. Let’s delve into Stage 1: The Build Deposit. A build deposit is required before any work commences, a fundamental step that sets the construction process in motion. Some builders may request this deposit upfront, while others prioritise securing building approval before seeking payment. Each stage of the build, starting from the initial deposit to the final completion, involves a structured invoicing system from the builder.
Upon receiving an invoice, it is imperative to thoroughly review, sign, and promptly submit it to your bank or lender for payment processing. Typically, the deposit is set at 5% of the total build price. Once your financial institution disburses this payment, your mortgage will reflect an increase corresponding to that amount.
This initial phase not only marks the financial commitment to the project but also initiates a series of systematic payments, underscoring the importance of a well-coordinated and informed approach to the construction process.
👉2. The Slab
Moving on to Stage 2, we delve into the pivotal slab construction phase. The footings are meticulously dug, plumbing is laid, and the concrete slab is poured. At the heart of this stage, just before the concrete is poured, a council inspector steps in to examine the plumbing and steel reinforcements. Only upon their approval can the concrete be poured, ensuring compliance with codes and standards.
Upon completion of this critical stage, you’ll receive a visual update in the form of progress photos. Simultaneously, an invoice detailing the work conducted will be issued. This invoice holds significant weight as it necessitates prompt submission to your lender, marking another step in the financial progression of the build. It’s essential to recognise the interconnectedness of these stages, underscoring the importance of timely communication and adherence to procedural guidelines for a successful construction journey.
👉3. The Frame
Transitioning to Stage 3, we focus on the progression following the solidification of the concrete slab. With the slab now hardened, the framework takes centre stage. Depending on your location, the frame could be constructed using timber, steel, or brick materials. This phase culminates in yet another crucial council inspection, dedicated to confirming the structural integrity of the newly erected frame. The council’s approval at this juncture is pivotal for the continued advancement of the construction process.
Simultaneously, following the completion of the frame, you will receive a corresponding invoice. This invoice serves as a formal record of the work undertaken during this stage and plays a pivotal role in facilitating financial transactions. Timely submission of this invoice to your lender ensures seamless financial support, aligning all elements of the construction journey for a successful and well-coordinated progression.
👉4. Enclosed Stage
Advancing to Stage 4, we now encounter the enclosed phase, also known as the ‘lock-up’ stage.
During this crucial stage, the property undergoes significant transformation. The roof is skillfully installed, bricks are laid, and windows and doors find their places, securing the structure. The completion of this phase marks a pivotal point where access to the property’s interior becomes restricted without a key, aptly earning it the designation ‘lock-up.’
As this stage concludes, an additional invoice will be issued, encapsulating the expenses associated with the accomplished work. This invoice, like the previous ones, plays a vital role in maintaining financial transparency and should be promptly forwarded to your lender. It reinforces the financial progression of the construction, highlighting the importance of synchronised efforts to ensure a successful and well-coordinated build.
👉5. Fixing Stage
Entering Stage 5, we arrive at the ‘Fixing’ phase, where substantial internal work takes centre stage. This critical stage encompasses the completion of significant internal components. The kitchen installation, bathroom fittings, electrical work, and plastering of the walls mark key milestones. This phase represents the meticulous attention to detail required for the finer aspects of the property.
At the culmination of the ‘Fixing’ stage, another pivotal moment arises with the issuance of an additional invoice. This document captures the costs associated with the comprehensive internal work conducted. As with previous stages, the timely submission of this invoice to your lender solidifies the financial trajectory of the build, emphasising the necessity for a seamless and well-coordinated construction journey.
👉6. Practical Completion
Advancing to Stage 6, we encounter the ‘Practical Completion’ phase, a critical point in the construction journey. Practical completion signifies a significant step toward the finalisation of your property, although it doesn’t equate to 100% completion. During this stage, the builder meticulously attends to all finishing touches, ensuring the property is ready for occupancy. Simultaneously, it’s the opportune time for you to conduct thorough building inspections, assuring that every aspect aligns with your expectations.
In contrast to earlier stages where swift invoice payment is encouraged, the practical completion invoice demands a different approach. It’s imperative not to settle this invoice until you are absolutely certain that every detail meets your satisfaction. While builders are motivated to receive payment, paying too soon may relegate any necessary rectifications to a lower priority.
Prioritise your contentment by ensuring every aspect aligns with your expectations before making the final payment, reinforcing the importance of meticulous scrutiny at this critical stage.
Stay tuned for more daily insights from my book, Wealth Through Property.
~Daimien Patterson
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