Reduce Risks with builders assumption & exclusions statement

We’ve all seen standard builders’ exclusions but if you don’t also know your builder’s assumptions, you don’t have the full picture.

Traditionally, builders provide a list of exclusions with their estimates that, quite sensibly, include everything from rocks during excavation to asbestos during demolition – plus more.

As builders become more experienced, these lists tend to grow through their “lived experience of gotcha’s” and desire to manage risk – for themselves and your clients.

However, whilst these lists are helpful and clarify the road ahead, they don’t always articulate the full picture.

That is, when estimating, builders have to make a set of assumptions about your project.

Some of these assumptions might include:

• The client (or site) already has electricity and running water.

• In apartments, that a car park will be available. Or, that the supervisor of the apartment will be available to install lift protection as required. Or, that the supervisor will be available onsite during work hours.

• A rear lane closure of 5 days will be sufficient for the required works

• The builder can use photographs from the work site to promote their business

• Specific construction sequencing (which may differ from your understanding)

• Client pays for council asset protect permit (and other disbursements)

• Plus, so much more….

“ProCalc is one of the single biggest time/value levers you can pull in your business. A great product and a must for anyone looking to save time and provide clarity around costings early on in the process.”

Sean Buchanan, Haven Homes

Whilst these assumptions are usually not unreasonable, having them clearly stated at the beginning helps you and your client better understand your builder’s thinking.

Each builder makes their own set of assumptions about your project and knowing them will reduce surprises.

An assumptions and exclusions statement also saves you loads of time when assessing builders’ tenders because it enables the builder (and you) to use your set of documents plus the assumptions/exclusions statement. That is, less sorting through the detail of the builders’ responses to compare it to your own documentation.

Author Richard Armstrong is a project manager & former registered builder who specialises residential construction pricing. With post-grad property qualifications and over 15 years’ design & construct experience, he is the Founding Director of ProCalc – Professional Construction Estimator. Free trial at www.procalc.com.au.

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