Building and Construction Market Holds Steady

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Building and Construction Market Holds Steady

Although latest building consent figures indicate a steady year for building, Pieter Burghout, Chief Executive of the Registered Master Builders Federation (RMBF) is recommending Kiwis consider moving ahead on the renovation projects they have had on hold because their builder was unavailable.

“The residential market is continuing to soften in terms of number of consents – but is still around a strong national average of around 26,000 new dwelling units per year; we are still expecting that to soften a bit further into 2007,” Mr Burghout says.

“This means households who have been putting off alterations and additions to their homes due to builders’ workloads might actually be able to find someone to do the work over the next year. Prior to this, many were being told to wait 6-12 months before a builder could even look at their project,” Mr Burghout said.

Mr Burghout’s comments came after Statistics New Zealand reported that the residential market was holding its own in terms of dollar value of the work being done – in January 2007 $538m of consents were issued, up 7% on the January the previous year. The commercial market remains strong and steady also.

“This reflects a stronger market in the quality end of building value, for example, slightly fewer houses being built but at a higher value, which we see reflected in the quality of work being awarded in the Registered Master Builders PlaceMakers House of the Year Awards,” Mr Burghout says.

The Registered Master Builders Federation has developed a checklist for those wanting to take advantage of changing market conditions and find a good builder.

ENDS

Notes to Editor

About Registered Master Builders Federation (RMBF)
- The Registered Master Builders Federation (RMBF) represents New Zealand’s premier building companies who pride themselves on delivering the highest quality houses and buildings to their clients
- RMBF has over 1700 registered master builder member companies nationwide, who employ more than 15,000 employees and subcontractors
- RMBF members represent 65% of every dollar spent on construction in 2005; and in the 10 months to 31 October 2006
- RMBF has been in existence for more than 100 years, providing industry leadership, training and services for its members
- There are 22 regional Registered Master Builders Associations throughout New Zealand
- Registered Master Builders are assessed on their building experience, trade or professional qualifications, and practical experience before membership is approved. Re-certification of members occurs regularly, with checks on their financial viability, client satisfaction and workmanship
- When engaging a Registered Master Builder for a new home, or residential alterations or additions (built under either full contract or a labour only contract), clients will be offered a Master Build 7-Year Guarantee, which covers loss of deposit, non-completion of the work, defective workmanship and materials and structural defects (conditions apply)

Checklist for finding a builder

Along with getting your plans in order – you must also choose the right builder for you. Here are some points for you to consider before starting your building project:

* Type of Builder – volume, custom or individual
- Volume: Larger firms that have building gangs, painting crews, joiners, plasterers etc. They are able to manage the project from beginning to end. They may cost more because they manage the process but they tend to be quick and efficient
- Custom: These are builders that have set plans which within certain limits, you can customise to your taste. Building from a set plan can be a very economical choice.
- Individual: These are small one-two person operators. They can offer a lot of flexibility, and provide a greater opportunity for you to be more involved in the whole building process.

* Make sure your builder is a Registered Master Builder? To be ‘Registered’ they must have proved that they can run a successful business and meet stringent quality standards. They must also be able to guarantee their work with a 7- year Master Build Guarantee. This is separately guaranteed by the Registered Master Builders Federation up to a certain limit.

* Type of home – Make sure you select a company or builder that has extensive experience constructing homes in your price range and general design style.

* Reputation is important. Look for an established builder or building company with an extensive, satisfied client list.

* Compatibility – building a home is a highly personal and emotional experience. Question and listen to everything about prospective builders. What do other people say about the builder and what does your instinct say?

* Warranty – you should be offered a comprehensive written warranty.

* Price – the cheapest price may not be the best. Remember you need to trust this builder and a good working relationship is essential for a successful project.

* Do your homework – look at more than one option, even if you have a preferred builder in mind. When you get quotes, tell the builder you are getting other quotes - they will appreciate your honesty.

* Award Winning –Registered Master Builders build award winning houses. Awards are given to entries that are judged to be 50-80% higher than industry standard, so if your builder carries a quality mark - you can be assured of building excellence.

www.masterbuilder.org.nz

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