NewsArchitect Administered or Direct to the Builder – What Type of Contract is Right for You?
Creating the living space of your dreams is a complex process from conception to completion, so choosing the right people, the right construction materials and the right building contract is very important indeed.
At Thirdson Construction, we understand that even the early days of planning your house building project can feel overwhelming, so we’ve broken down the most common building contract options to help you choose what’s right for you.
In architectural residential building (industry speak for any dwelling designed by an architect) the consumer (you) most commonly chooses one of the following three options:
- Architect Administered Building Contract – Your architect also acts as the contract administrator.
- Direct to Builder Contract (with Architect listed as “Authorised Agent/Representative”) – Your architect acts as your proxy when discussing details of the project with the builder.
- Direct to Builder Contract – All project arrangements (post-design phase) are discussed directly with your builder, without further architect involvement.
To figure out which of these options will suit your building project best, take a few minutes to consider the following:
For the Architect Administered Contract
If you are short on time, you trust your architect’s choices and you are happy to pay for this service.
All correspondence for the house build goes between the architect and the builder, added scope, decisions of finishes, colours, lighting questions are all resolved between these parties and then the owner is informed on the outcomes or suggestions.
All costs are managed by the architect.
- Does your architect have the capacity to take on this role? Do they have the staff needed for the administrative requirements?
- Check for reviews. What were previous clients’ experiences?
- Prioritise your budget considerations. What is most important to you? Design ideas? Cost?
- Are there risks involved that may affect onsite outcomes?
- How will this contract affect the timeline of decision making?
For the Builders Contract with Architect as Agent
If you want help for decisions onsite and someone experienced in your corner (other than the builder).
Only key correspondence is reviewed by the architect in conjunction with the owner. Any form of involvement can be negotiated with your architect.
- What aspects of the project will the architect review on your behalf? Some examples include: Legitimacy of progress claim amounts/ Approving complex drawings/ Approving samples onsite/ Approving variation requests. It is important to be very clear about this when drafting the contract, as it will save you many headaches later on.
- Will this process slow down crucial decision making?
- How can this help reduce risk on the homeowner (you)?
- Have all parties agreed on their level of involvement?
For the Contract Direct to Builder
If you trust the builder’s processes and you have the time and experience for decisions that may come up.
As soon as the documents are completed by the architect’s team, its all up to you and the builder to navigate the process of contract management and construction together. Depending on the complexity of the home design, this can be completely manageable when a rehearsed team of builders are on board.
- How much capacity does the builder have to administer the contract? Do they have the staff to do this?
- What do their previous clients say about their experiences?
- How do you ensure project budget considerations are above the builder’s ideas? Do they have a transparent costing process for this already?How can you cap the level of profit or variations that could be added?
We recognise that every project is different and every homeowner has different levels of industry knowledge – and different capacity when it comes to overseeing the project.
However, experience has taught us that proper planning and good decision making will smooth out the road to your dream home as much as possible.
Reach out to our team about your upcoming project to consider which pathway of executing the building contract works best for your project.
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Thirdson Construction Pty Ltd
Brisbane QLD 4068
License number: 1266399