• PC ALLOWANCES. This an allowance for an item that cannot be costed exactly. For example ˇV Kitchen cupboards, supply of tiles or bathroom fittings, siteworks, etc. Some PC allowances may be unavoidable but a tender should NOT have PC allowances for basic items such as frames & trusses, windows, roofing and alike. The best quotes have little or no PC allowances so that these costs cannot increase during construction
• UNREALISTIC PC ALLOWANCES. If a PC is to be included it should be a realistic figure and if possible with a schedule of rates. There may need to be an element of trust between the owner & builder in estimating this amount of PC allowance.
• UNQUOTED VARIATIONS. Most variations can be quoted for before any work is completed. However if in the rare case it cannot be quoted (eg replacement of termite damaged timber) the variation needs to be proved by supplying a copy of any material purchase invoices to the owner plus a charge for labour at an agreed rate and a builder percentage for overheads and profit
• CONCRETE PIERING. Any concrete piering should be completed at an agreed rate. The owner should inspect the amount of pier holes completed to ensure they have been charged for the correct amount of piering completed. The builder is the only person who usually keeps a record of the amount of concrete piering that has been actually completed on site. The engineer or council does not usually record the depth of pier holes drilled on site.
• ROCK EXCAVATION. This can be expensive and should be completed at an agreed rate of charges of machine fire, float charges, truck hire, tip fee's that might be required.
• GST. This can be double charged. Owners should ensure any invoices clearly state whether GST is included or not. The builder can easily double charge for GST on the sub-contractors invoice and then again on his invoice to the owner if t is not clearly checked.
• LABOUR RATES. These should be fair and reasonable. It is common for many builders to include excessively hire labour rates for any extra work that may be required. All labour rates would be clearly stated in the building contract so that the owner knows exactly what labour rates will be charged for.
• EXLCUSIONS. Builders can make more money by excluding an item rather than completing a variation by not passing on the full amount of any excluded item in the contract to the owner when an item is deleted. If the owner is thinking of excluding an item during construction they should ask the builder to include what the credit amount would be in the contract prior to contract signing.
• TENDER VALIDITY. All good builders will state in their tender how long their tender is valid for before they can revise it for industry rise and fall. This is usually between 30 and 90 days. Owners should not sign a contract until plans are passed by council and the builder is ready to start on-site immediately. Otherwise they run the risk of being charged for excessive price rises imposed by the builder. The owner can also ask for evidence from builder's suppliers proving they have actually incurred the price rise they are claiming for.
• WRITTEN INCLUSIONS. Owners should insist that all of there requirements are included in the tender in writing. If it is not written in the tender the owner will have no legal right to claim for the inclusion. The tender should be attached to the contract and every page signed by both parties with a copy for each party supplied.
  The most important element will be communication & trust between both parties. The above are only a few of the ways builders can rip off their clients. Owners should check the builders experience, check references and evaluate the builder not only on price but also on professionalism

• ICR FINANCIAL SERVICES (IAN RICHARDSON)
  Phone: 98341005 / 0417210110
  Fax: 98341500
  Email: ianricho@bigpond.net.au
• CITY MUTUAL HOME LOANS (GREG FISK)
  Phone: 45720322 / 0418225233
  Fax: 45720344
  Email: gregfisk@citymutual.com.au

1. CONCRETE POUR
2. DELIVERY OF FRAMES & TRUSSES
3. DELIVERY OF BRICKWORK
4. FASCIA & GUTTER INSTALLED
5. ROOF TILES / IRON DELIVERED
6. PLUMBING & ELECTRICAL ROUGH-IN COMPLETED
7. PLASTERBOARD / INTERNAL LINING DLEIVERED
8. LOCK-UP (HOUSE IS SECURE)
9. FIXOUT DELIVERED - DOORS & ARCHITRAVES
10. CERAMIC TILING COMPLETED
11. PAINTING COMPLETED
12. PRACTICAL COMPLETION

Final payment is required at "Practical Completion". This is the stage when either the owner moves into the house / addition or when the house is complete, except for maintenance items.

Owners have 13 weeks after they move in to supply a maintenance list of minor items to be completed or rectified. O'Mara does not usually enforce this 13 week period and we often return to inspection any owner concerns may months after the work has been completed.

Each project O'Mara completes is totally different. A schedule of progress claims is prepared and included in every building contract to suit the project. Adjustments can be made to suit both parties when required.

Council Approval Process
To obtain council approval there are 2 main steps;
1. Building Development approval (DA) - this can ONLY be done by council and NOT by private certifiers
2. Construction Certificate (CC) - this can be issued by council directly OR by a private certifier

The following documentation is supplied by council when the project has been approved;
ₕ Building plans with council approved stamp
ₕ Building approval conditions
ₕ Statement of environmental effects
ₕ Waste Management Plan

Councils can be ANY of the following;
ₕ Hawkesbury City Council, Blue Mountains City Council, Hornsby City Council, Gosford City Council, Wyong City Council, Penrith City Council, Baulkham Hills City Council, etc

The following documentation is required to obtain a construction certificate from a private certifier so that work can start on site;
ₕ Building plans with council approved stamp
ₕ Building approval conditions
ₕ Home Owners Warranty insurance policy

ₕ Specification
ₕ Surveying setout 
ₕ Evidence of payment of LONG SERVICE LEAVE LEVY from council
ₕ Engineer certification of the existing house to support the additional work ˇV only required for 2nd storey additions
ₕ Engineers design of all concrete and steel work (usually Pat Meares)
ₕ BASIX report of energy efficiency
ₕ Sewer or hydraulic stormwater design (McKinley Morgan)*
ₕ Acoustic reports (RSA acoustics)*
ₕ Bushfire report*
ₕ Landscape design*
ₕ Compliance certificates from Sydney Water, Integral Energy and AGL *
ₕ Evidence of payment of council Section 94 *
ₕ Evidence of payment of Sydney Water Section 73 contribution *
* means not always required, usually only for multi-unit developments

Insurance
Is everything covered ?

HOME WARRANTY INSURANCE
This insurance policy covers the owner against fault by the builder. If the builder may dies, gone broke, retires or will not rectify faulty work the insurance company will pay out the owner and pursue the builder. The builder must obtain the insurance policy. If the builder cannot obtain his own home ownersˇ¦ warranty insurance policy it is probable because he is unlicensed, has had previous claims against him or is unprofitable. The better the builder is the more insurance he is able to obtain and the lower his premiums will be. For example a small builder may be able to obtain only $100,000 per year worth of insurance.

If a builder asks you to obtain the home ownersˇ¦ warranty insurance policy instead of the builder beware. This puts all of the responsibilities on the owner and NOT the builder. The owner losses all rights to claim against the builder. We strongly recommend against this. The builder should always obtain the policy.

O'Mara has NEVER had a claim by any previous client against home owners' warranty insurance. We are rated by our insurer as a CLASS 1 builder. The highest rating available. We can obtain insurance usually within 48 hours.

WORKERS COMPENSATION INSURANCE & SICKNESS / ACCIDENT INSURANCE
All people working on site need to have insurance to cover any accidents and injury on site
Companies need to have workers compensation insurance, sole traders only need to have sickness & accident insurance.
O'Mara is fully covered for this insurance at all times.

PUBLIC LIABILITY INSURANCE
This covers all anyone who enters the site and hurts themselves on site. It does not matter if they were allowed to enter the site or if they were trespassing. They still need to be covered. Councilˇ¦s usually require cover for up to $10,000,000.
O'Mara is fully covered for this insurance at all times.

HOME CONTENTS INSURANCE For HOME ADDITIONS & RENOVATIONS
O'Mara cannot cover your house "contents" with our standard construction insurance. You will need to check with your insurance company that your house contents is covered while renovating against theft or damage (eg water damage), some companies will cover you, others will not. If your current insurance company will not cover your contents while renovating you may need to take out a separate policy to cover your contents during construction. O'Mara cannot cover your contents as they are not our property.

EXISTING HOUSE "STRUCTURE" INSURANCE
You should also check to see if your current house insurance will cover your existing residence "STRUCTURE" during construction. This is to cover your existing home against damage during construction not caused by the builder. (Eg water damage, fire, electrical shorts, etc). If the builder caused the damage the builder is always liable for any damage. However if the damage is caused by a fault in the existing home and has nothing to do with the new work being completed then insurance is required to cover the existing house structure. Many insurance companies will not your existing house while building work is being completed. We can take out a special insurance cover for your existing residence  "STRUCTURE" if your current insurance company will not. The cost of this policy can be obtained upon request

• After signing the building contract all materials will be ordered and construction may not commence for 3-4 weeks until floor joists, flooring, frames, trusses, fascia, gutter, roof tiles & windows are delivered to site.
• Depending on the project we can usually reach the waterproof stage within 10 working days. That is roof tiles laid and walls sarked
• There is NO need for owners to vacate the premises during construction of 2nd storey additions.
• We will install floor sheets over the staircase opening and tradesmen will enter the addition via ladders over the roof.
• The staircase opening will only be created when the house is at lock-up stage and the house is secure.
• We use a custom waterproof tarp that covers the entire new floor area. In extremely heavy rain minor leaks may occur. O'Mara will rectify any leaks at NO cost to you.
• Upon request we can price the extra cost to vacuum out the existing ceiling of all existing vermin, dust & debris. This will be the last opportunity to access this area before the new floor is installed.
• Upon request we can price the extra cost to install special downlight protectors around any existing ceiling downlights as this is one of the major causes of home fires
• We can program our work so that any ground floor alterations to the existing house is completed after the first floor addition has been finished and owners have moved into the addition, even if there is a delay of a few weeks.

COST SAVING IDEA'S
Many building projects do not reach the construction stage as many building projects are designed "over-budget". Upon request O'Mara can supply a range of cost saving idea's to allow owners to build within their budget, including ;
ₕ Alternate building materials
ₕ Different methods of construction
ₕ Changes to the existing design
ₕ A total different design concept
The best way to reach your budget figure is to inform us of the amount of cost saving is required so that we can inform you of what changes need to be made to reach the required budget figure.

 
OPTIONAL EXTRA'S
The following is a list of common optional extras that are regularly requested by our clients that you may wish to include
ₕ Alarm system
ₕ Floor safe poured in concrete slab and concealed by carpet
ₕ Security screens to windows or swinging doors
ₕ Perimeter "Termimesh" or "Granitguard" to the external perimeter cavity
ₕ Reticulation system under or around the house slab
ₕ Treated pine frames & trusses
ₕ Rear or side yard stencil concrete paving to owner requirements
ₕ Internal strip flooring
ₕ Brick headers or feature columns
ₕ Tinted glass or Double glazing
ₕ Metal gutter guard to gutters & valleys
ₕ Whirlybirds with eave vents or gable vents to reduce ceiling heat
ₕ Ceiling access ladder for storage in roof space
ₕ Velux remote controlled openable roof windows with rain sensor closing
ₕ Hardwood staircase with stainless steel cable balustrade
ₕ Solar hot water unit
ₕ Basin to garage
ₕ Decorative cornice, ceiling or wall boxings
ₕ Noise reduction or high impact plasterboard
ₕ Ceiling lining boards in MDF, pine, Tasmanian Oak or Cedar
ₕ Dado wall lining boards or mini-orb with Dado railing
ₕ Low voltage down lights
ₕ External sensor or flood lights
ₕ Additional double, triple or quad  power points
ₕ Additional Telephone points
ₕ Network interconnection points
ₕ Garden lights or Wall lights
ₕ Decorative switch cover plates
ₕ Ceiling fans or Dimmers
ₕ Smart house wiring
ₕ Intercom
ₕ Stereo system wiring or Ducted vacuum system
ₕ Stain finish Pacific Maple skirting & architrave
ₕ Stain finish Tasmanian Oak skirting & architrave
ₕ Larger skirting & architrave eg 100mm (4ˇ¨) & 150mm (6ˇ¨) skirting
ₕ Additional shelving & dividers to owners design
ₕ Upgrade ceramic tiles to Terra-Cotta, Porcelain, Marble Or Granite Tiles
ₕ Increase wall tiling height to floor to ceiling
ₕ Internal wall acoustic insulation
ₕ Laundry joinery
ₕ Slow combustion fireplace or gas heater to owner selection

• Water tanks - concrete, plastic, colorbond, underground, sub-floor
• Hot water - natural gas, bottled gas, solar, heat pump
• Recycled septic systems
• Waterless toilets
• Water saving taps
• Energy efficient glass in windows
• High-lite openable windows
• Window shutters
• Openable skylights
• Reversable ceiling fans
• Solar panels for electricity
• Insulation - polyester, polystrene, "Protherm"
• Thermal mass
• Verandah and pergola's
• North facing living areas
• Landscaping and use of deciduous trees
• Recycling building waste
• Using recycled building materials (eg bricks, timber, flooring)
• LED lighting

OMara can tell you how to make your existing design more energy efficient or help you design you new project in the best more cost effective energy efficient methods. Contact our office for more information