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thanks for great works. My big concern is about double story pillars, frame, and beams... how come these timber frames are supposed to hold the weight of the house... the 1 brick wall looks like an ornament, does not serve a purpose
Hi DD, glad you are enjoying the content! The brick wall can often be designed for load bearing, for insulation and the brick look, it can also be rendered. Happy developing!
Hi Peter! How are you navigating property development right now with high construction costs? Currently am looking for my first duplex deal in South Australia, however I am struggling to make it work with a reasonable and risk-mitigating profit margin. Awesome content aswell - thanks so much for it all!
Hi Fraser, I hope you are well, and I'm pumped you are enjoying the content! I agree some deals do present squishy at the moment with the inflated build prices. You need to find the areas that are getting the solid re-sales and find the areas where the margin is most evident! Also, it could be time to purchase the site at least...... and then you can see what happens, but at least you are in. We are very bullish on property over the next 2-5-10 years!! Happy developing!! 🐟🐟🐟
Thanks Katie, glad you're getting some value! If you scroll through the articles and videos in the building section on our website, you should be able to find the information you are looking for 👉 www.littlefishproperties.com.au/building/ Happy developing!
Competitive tendering for major projects in the UK is almost obsolete. Let's say you have a budget of 10 million and invite 3 tenderers. Each tenderer will spend a lot of money putting their tender together so won't want to see that wasted. So they deliberately undercut each other. The architect has specified the doors to be supplied by Bill Turner. Contractor 1 gets a Bill Turner price of 100k. Contractor 2 has another supply chain favourite called Billy boy and his price is 90k to Contractor 2 but 120k to Contractor 1. Contractor 3 has another supply chain from wizzo doors who quotes Contractor 1 at 125k, Contractor 2 at 95k and Contractor 3 at 85k. Contractor 3 also has a redesign secret up his sleeve. So does Contractor 1. All 3 bidders have another 15 to 20 off spec and re design secrets and they are all different. Contractor 1 bid is 10.20 million. Contractor 2 is 10.50 milion snd Contractor 3 is 10.80 million or sone of them are below 10 million. But all three are non compliant. But none of them declare that in their bid submission, instead they wait until they put a vague statement in their bid letter like we look forward to discussing our offer in due course. Then they gauge where they are in the pecking order when they get interviewed and then the Client realises he has a mess to sort out. On a big job such as a 50 million plus project one or two years can pass to sort the mess out. Then additional inflation kicks in and you go round and round in circles. Far better to employ one contractor on a partnership basis who becomes part of the team at design stage.
Understand Trevor!! But partnering exclusively with one builder usually results in you paying too much, unless there is an agreed, strict set of rates. This can work!
Yes you can have a pre agreed set of rates but would every element be covered ? And a pre agreed oh and profit %. Then there are the prelims. With a partnership the Contractor becomes part of the design team providing design buildability. And he can put an early budget price in place giving the Client early comfort and then he can fine tune the budget as design progresses. The skill is putting a budget in place that can later be bettered as design progresses. Also a fully costed risk register can be provided with a pre agreed risk share between Client and Contractor. In the UK there is an NHS partnership contract called procure 23 based on these issues. My experience of working on 3 contracts is very positive even though each project took 2 years to develop to an agreed scheme and price with full planning permission.
📌 Unlock Financial Freedom: Free $20,000 Townhouse Masterclass! 🚀
Sign up for the FREE Fish subscription and access our $20,000 Townhouse Masterclass! Learn from industry experts and join a community of like-minded developers.
🔑 What you get:
• Comprehensive modules on townhouse development
• Digital templates & actionable checklists
• Weekly live Q&A sessions
• Members directory access
• Private messaging
• Supportive online community
Start your journey today and secure your future. Click the link below to get started for FREE! ⬇
littlefishnetwork.link/free
thanks for great works. My big concern is about double story pillars, frame, and beams... how come these timber frames are supposed to hold the weight of the house... the 1 brick wall looks like an ornament, does not serve a purpose
Hi DD, glad you are enjoying the content!
The brick wall can often be designed for load bearing, for insulation and the brick look, it can also be rendered.
Happy developing!
Hi Peter!
How are you navigating property development right now with high construction costs? Currently am looking for my first duplex deal in South Australia, however I am struggling to make it work with a reasonable and risk-mitigating profit margin.
Awesome content aswell - thanks so much for it all!
Hi Fraser, I hope you are well, and I'm pumped you are enjoying the content! I agree some deals do present squishy at the moment with the inflated build prices.
You need to find the areas that are getting the solid re-sales and find the areas where the margin is most evident! Also, it could be time to purchase the site at least...... and then you can see what happens, but at least you are in.
We are very bullish on property over the next 2-5-10 years!!
Happy developing!! 🐟🐟🐟
Great Video Peter! Could you please also share some tips on conducting builder due diligence checks? Thank you😊
Thanks Katie, glad you're getting some value! If you scroll through the articles and videos in the building section on our website, you should be able to find the information you are looking for 👉 www.littlefishproperties.com.au/building/
Happy developing!
Peter, is there reference for all required Construction Documentations, everything required before call for tender?
thanks man!
For sure! Scroll down to point 14 👉 www.littlefishproperties.com.au/duplex-melbourne/
Are there any resources that show the application/responses to the tenders? We have been in resi for 26 years and wanting to move to commercial.
Hi Adam - We are in Resi also... not commercial!! But yes there are some resources over at the Little Fish Network!! 🔥🔥🔥
strong stuff !!!
🙏
Competitive tendering for major projects in the UK is almost obsolete. Let's say you have a budget of 10 million and invite 3 tenderers. Each tenderer will spend a lot of money putting their tender together so won't want to see that wasted. So they deliberately undercut each other. The architect has specified the doors to be supplied by Bill Turner. Contractor 1 gets a Bill Turner price of 100k. Contractor 2 has another supply chain favourite called Billy boy and his price is 90k to Contractor 2 but 120k to Contractor 1. Contractor 3 has another supply chain from wizzo doors who quotes Contractor 1 at 125k, Contractor 2 at 95k and Contractor 3 at 85k. Contractor 3 also has a redesign secret up his sleeve. So does Contractor 1. All 3 bidders have another 15 to 20 off spec and re design secrets and they are all different. Contractor 1 bid is 10.20 million. Contractor 2 is 10.50 milion snd Contractor 3 is 10.80 million or sone of them are below 10 million. But all three are non compliant. But none of them declare that in their bid submission, instead they wait until they put a vague statement in their bid letter like we look forward to discussing our offer in due course. Then they gauge where they are in the pecking order when they get interviewed and then the Client realises he has a mess to sort out. On a big job such as a 50 million plus project one or two years can pass to sort the mess out. Then additional inflation kicks in and you go round and round in circles. Far better to employ one contractor on a partnership basis who becomes part of the team at design stage.
Understand Trevor!!
But partnering exclusively with one builder usually results in you paying too much, unless there is an agreed, strict set of rates. This can work!
Yes you can have a pre agreed set of rates but would every element be covered ? And a pre agreed oh and profit %. Then there are the prelims. With a partnership the Contractor becomes part of the design team providing design buildability. And he can put an early budget price in place giving the Client early comfort and then he can fine tune the budget as design progresses. The skill is putting a budget in place that can later be bettered as design progresses. Also a fully costed risk register can be provided with a pre agreed risk share between Client and Contractor. In the UK there is an NHS partnership contract called procure 23 based on these issues. My experience of working on 3 contracts is very positive even though each project took 2 years to develop to an agreed scheme and price with full planning permission.
✅👊 Appreciate your in-sites!