Did you know that not all projects are the same? Oftentimes, square metre rates are used to determine a project budget. This is not accurate and doesn't suit all projects.

When you first meet or speak with a C2CPRO-powered builder, the primary outcome is to determine whether your budget meets your wishlist. To do this, the builder will provide you with an initial estimate report called a Trial Budget Report. 

This is NOT a quote but an estimate to qualify your project needs against your budget.

At the first stage of your project, the builder can use the C2CPRO Xplorer or Discovery tool to quickly determine your project budget. Both tools give similar outcomes. The Xplorer is a great, interactive initial estimate tool that is generally used if you have no plans, and the Discovery is a more detailed tool that can fine-tune your budget even further. The results from the Discovery tend to average within 10% of the final cost outcome.

C2CPRO Xplorer and Discovery use current trades and suppliers rates in your area to create an estimate of your project. Many formulas run in the background of these programs to include all project elements, from the concrete slab to the rates for your final builder's clean of your project.

These tools can help everyone understand how the wish list and budget will work together. The builder will enter the wish list based on room sizes and/or the renovation items to determine the budget. If the budget is unclear, keep working together; as you can see, the price changes as more information is entered. Work together and have fun with it—be interactive until you come to a cost solution that you are happy with.

The builder can then return to their office to fine-tune the project brief and provide a Trial Budget Report, which is your very first estimate. This is based on the meeting, plus other items like retaining walls, fencing, and other specialty items that may be required to customize the report to the project.

The great thing is you will get a report back within days rather than the standard 2-3 weeks for a quote with other builders.

This is the beginning of the project journey through Domestic Construction Management.

Open, transparent and honest. The perfect recipe for project success.

Is finance needed for the project?

Did you know the Trial Budget Report can be used for a pre-finance check? Getting started early on your finance investigation ensures that no one is wasting their time before spending a cent on designs. 

The Trial Budget Report now becomes the brief to your designer/architect.

Your C2CPRO-powered builder may recommend a designer or architect. The great thing is that you can all work together to ensure that your design stays on budget.

This Trial Budget Report outlines the building size and the level of finish that has been discussed and is what the designer should follow to ensure a design outcome that meets the report budget.

Once you have your first design, Discovery can be used again to create a second report based on the designs to ensure the budget is on track.

If it’s not, make amendments to the design, or if the design is to stay as is, the report will clearly outline that the budget has now changed.

What if you already have plans?

Your design may already be drafted, either at sketch level or with more detail, ready for building approval.

Provide these to the builder before the meeting so that they can create an estimate with the Discovery program before you meet. Also, provide your project expectations and, most importantly, the budget. 

If the budget is unclear, that’s fine; the Discovery is pretty accurate and will help you decide on the design and budget.

The great thing is that it's quick and easy to use, so it will only take a couple of hours to complete the report rather than weeks of tendering the project.

Meet with your builder and go over the report. 

If the cost outcome does not meet the budget expectations, don't panic—consider the project brief and brainstorm the ‘must haves’ and the ‘nice to haves’ so that the budget can be met. 

Keep working together with the Discovery to get to your expected budget so you can confidently move forward.

Most project owners get quotes from multiple builders, which is understandable. Comparing these quotes can be tricky as each builder will provide a different level of detail and have a different structure to their quote.

If you simply look at the bottom line and compare the total cost, you are about to make a big mistake. By making a comparison on price alone, you are assuming that each builder has covered the same scope, does not have hidden costs, and will build using the same standard and quality of products.

Below is a checklist and a guide to comparing builder's quotes to help you make the right choice.

You and your C2CPRO-powered builder have worked together on your budget, and now the designer is working with you on more detailed plans. At this stage, you will surely be getting excited.

Check out this video that outlines the process of working with your designer and builder until the contract is ready to be signed.

You may have noticed an emphasis on Transparency, Savings and Security.

But what do these keywords mean, and how does it work on your project?

Once the first round of the design is done, the builder will do another Trial Budget Report to outline the budget against the design. 

Or, the data from the Discovery can now be moved to the Master Cost Assembly, to create a more detailed, project specific Preliminary Cost Report.

Discuss any high costs items if budget is an issue. Work through it together.

Now there is confidence to move forward with structural design or town planning, knowing that the design is going to meet the budget.

While the designer, consultants and builder are working hard on further detailing the design, now is the chance for you to start making selections, like kitchen appliances, tiles, basins, tapware and all the other fun stuff.

Allowances for PC items are shown in the Shopping List and how many items are allowed for. If bathroom wall tiles are on sale and savings are made, you either keep the savings or, better yet, get that freestanding bath that was just out of the budget allowance. 

You are always fully aware of the allowances and can confidently make your choices, shopping wherever you choose.  

Request your link to your Shopping List from your builder so you can get started.

Provide the Shopping List to your Interior Designer, if you have one, so they can make the right selection at the right price!

Note: Your selection choices are important.

Choose a concealed cistern toilet? The plumber needs to know the type of installation required, and the designer needs to know if the design needs to be adjusted to suit.

Details of each selection can be added to the Shopping List, with web links if found online, and even photos of the items can be uploaded to the wish list.  Favourite items get ticked and added to the Picklist. 

By now, there is confidence that a relationship has been nurtured with your C2CPRO Powered Builder where communication and transparency is key. 

The builder is now ready to get quotes. To formalise this process, the builder may require a Preliminary Agreement.  This agreement outlines the intent to formally quote the project, which can take time.

Some builders may charge a fee to quote your project, but as you are both comfortable with the budget based on previous reports, it's appropriate that the builder will focus a lot of their attentions to your project. The builder's trade and suppliers are giving their most accurate price as they know that this project has a higher success rate as you are all on the same page about the budget.

The builder retrieves quotes from trades and suppliers, which are then added to the Master Cost Assembly to get closer to the final quote price.

You are shopping to complete your selections.

The Designer is finalising plans for building approval.

Trades love Construction Management

Once all relevant items are quoted and other allowances that make up the contract price are added, a Preliminary Cost Report is ready for presentation.

You may notice that there is a Contingency Sum in the Cost Report.  More often than not, most builders will have a contingency built into their contract price - but you don't know what they have allowed. A C2CPRO project Contingency Sum is allocated to make way for any quoted items that may, for some reason, go over the original quoted amount.

An example may be that the plasterer has installed the plasterboard but has not yet done the setting of the joins.  The plasterer is now unwell and can't complete the project, so the builder finds another plasterer last minute, however, their quote to complete is higher than the allowance left.  This is where the Contingency Sum becomes available to cover these additional costs.

The Contingency Sum may not be exhausted, so at the end of the project, the remaining funds, plus any cost savings made along the way, will go back to you.

Remember, this is the first contract price presentation, and more often than not, the quote will be amended based on comments, additional requirements or omissions. 

Now is the time to talk about Domestic Construction Management, the contract and the use of a joint bank account, and the importance of securing the funds intended for the project. 

Download CM Contract Summary which outlines C2CPRO and the benefits

The C2CPRO Fixed Price Domestic Construction Management Contract (C2CPRO Contract) offers all the usual benefits of standard residential contracts. Still, with a crucial difference: you manage the project funds jointly with the builder, compared to conventional arrangements where builders control a significant portion of funds.

You may be wondering why choose a Construction Management Contract?

The following is an outline of the different types of contracts available:

There will be supporting documents to accompany the formal contract that will further cement the transparency of the project:

When you sign the contract, make sure there are two copies made, one for you, one for the builder.  Sometimes, though, the financier will require a copy too, so make you and the builder sign this copy too.

1. Meet with your builder and go through the contract. 

2. Confirm the items in the Cost Report and any excluded items. 

3. Once you have a signed Contract, the next step is to set up the Joint Security Account.

Payments to all involved get made from this account, rather than the project funds being paid to the builder and then dispersed by them.

This is the most important part of C2CPRO.

Standard contracts require you to pay the builder the contract price over staged payments.  Typically 80% of these funds are to be delivered to trades and suppliers, not the builder.  This offers little security in knowing your project funds get delivered to the right person at the right time.

The image below shows the Project Owner funds being delivered directly to the builder and then they disperse the funds to the parties involved in your project.

Did you know that often times, your project funds could be used to make payments to trades and suppliers for previous projects?

C2CPRO Domestic Construction Management Contract still requires you to pay the contract price over staged payments, however the funds are paid to the Joint Security Account, not directly to the builder.  You and the builder jointly manage the payments to all involved in your project, providing security in knowing your project funds get delivered to the right person at the right time.

The image below shows the Project Owner funds being delivered securely to the Joint Security Account.  From the Joint Security Account, the builder and all others involved in your project have their funds dispersed to them securely.

Project funds are jointly managed by you and the builder to pay trades and suppliers directly from the Joint Security Account.

The JSA is a two to sign bank account setup between you and the builder. No one person can authorise a payment outside of the account without the other. When the project is complete, and you are ready to close the account, both parties need to close the account together.

The JSA should have funds in it at all times. 

However, you don't need to have the entire contract sum funds added to the account.  You will be requested to add funds by a Drawdown Request by the builder based on the Stage Claim.

As Stage Claims are made from the builder and the trades and suppliers' invoices are being paid, you need to ensure the account is consistently maintained with funds to keep the project moving. This also means that for financed projects, you are responsible for promptly informing the financier each time a Stage Claim is made.

Once the account is set up, the builder will give you a Drawdown Request for Deposit Stage.  This is your first payment to the JSA to start the project off. The builder will also give you an invoice from their company for their deposit for Construction Management fees, which will also include funds for insurances and any other relevant authority fees.

The builder will pay these fees and your building approval should now be granted.

You are now ready to build!