First of all please allow me to introduce myself. My name is Valentin Varga. I am a Carpenter by trade. I have been working in the construction industry for over 8 years. Over the years I have had the opportunity to work for a variety of people from all sorts of backgrounds, some of them were “normal” people; others were property professionals such as architects, surveyors, designers, property investors, and developers. I have been employed, I also subcontracted work from various builders, and I have also run a few of my own jobs.

Every single project was a great experience and often I was an eyewitness to problems arising between main contractor and clients/architects. In most cases the problems could have been solved easily, but neither the builder nor the client had the necessary mentality to seek a solution, hence their relationship went pare shaped. I have decided to write this report to give you simple tips on the sensitive topic of working with builders. I understand that some will find this guide useful, and others with more experience will probably already know and practice these steps. In both cases I am looking for other tips and tricks to include to this unfinished guide so hopefully everyone will be able to benefit from our combined experience. These tips are all based on my own personal experience that I have seen/learnt over the years.

You will discover:

• What my predictions for the future of the builders are
• Where to find good builders and where not to
• How you can help your builder give you a fair price
• Why you should get more quotes
• What finance means for the investor and what it means for the builder
• What the low price and the high price really mean
• What makes a good builder and how you can easily check this yourself
• The prose and cons of using foreign builders
• How to protect yourself and your investment when working with builders
• How to deal with problems
• Why communication is key
• The major difference between working for a “normal” client, and BTL investor
• The easiest way to find a trustworthy builder in and around London

Predictions:

The next few years will be difficult for everyone that’s not a secret. Builders and tradesmen are already experiencing lack of work, even those who had work non stop over the last few years. We all know this will continue to be the case and builders must get their act together if they want to survive. Prices will fall, you won’t see as many unreasonably high quotes, and hopefully all the cowboys out there will starve, as there will be no room for unprofessional people. Overall it will be difficult for them, but I believe the true professionals can still maintain a strong and profitable business. For investors it means you should be able to find better builders for better prices quicker.

Where to find them

The first step for you is to find your builder. There are of course different avenues to find one, let’s have a look at some of them.

Pub:
This is not a good idea. I am sure you are not the kind of investor who sits around in pubs all the time, so probably pubs will not be the first place for you to look anyway but whether you believe or not some clients will. Socializing is not really a problem please don’t get me wrong, but I have found that pub builders will usually be disorganised, untidy, unable to concentrate, and they can’t wait for the clock to hit 5 o’clock so they can rush to the pub for a quick pint.

Yellow pages and other advertising mediums:
It works for some and it doesn’t for others. Some will appear in the yellow pages, but only for existing clients. Usually these builders can be more expensive as they have more overheads; they also visit a lot of jobs that they will not get, simply because they will be contacted by people who don’t know hem. It will also leave them open to those who are only looking for a quote so they can negotiate with the builder they already chose.

Internet comparison/builder’s site:
I have not tried this myself I have to say, but I have a feeling that it still has a Christmas gift factor. Even though you will see comments about them, you don’t really know them, so you don’t know what you get.

Recommendation from other people/word of mouth:
This is the best of all, we all know that. Referrals and word of mouth is probably more important in the construction business than anywhere else. I know quite a few successful builders who over the years built up strong solid businesses based on referrals, nothing else. The power of this is amazing. If you can, you should always try to find someone through someone you know. Relatives, friends, neighbours, work colleges. If the property is far away from you and you don’t know anybody there, then you can phone up a local architect/surveyor/diy shop. I am sure they will recommend someone good, someone they know well, as it can reflect on their own businesses.

Check them out

Once you find someone you have to make sure that they are the sort of builders you want to work with. If you can, have a look at a job your possible builder did. Even better, visit the one they are actually doing. If it is not possible, do they have a website? Can they send you some pictures? Do they look genuine? Can they give you names and contact details of a few people they worked for. Do call them to find out. When you call them do they sound genuine? You don’t want to be talking to a friend of the builder instead of the client. When you call say something different to what your builder said he had done there. If the person on the phone corrects you then probably it is genuine.

Hopefully you will never have to go as far as that though.

To check out if your builder or company has any CCJ against them go to:
www.trustonline.org.uk

To check out if your plumber is CORGI registered, and to find CORGI installers in
your chosen area go to:
www.trustcorgi.com/findinstaller/Checkaninstaller.htmx

To find a NICEIC electrician go to:
http://niceic.org.uk/en/findacontractor/index.asp

When you visit their site is it tidy? Are they working? How many cups and tea bags can you see on the floor? Is the front/back garden kept tidy? This alone will tell you a lot about how much they respect the property they are working in. Does the builder show up on the agreed time? Does he call when he said he would? Does he call you if he is running late? Again it will tell you a lot.

Finances for you and for your builder.

I am sure that the finance question is really simple to answer from your point of you.
Investors will want to get the best value for money, they will in most cases try to
negotiate to get it done as cheaply as possible. They expect professional attitude fromthe builder at all times.

One would think that the builder will want to charge as much as possible +£500 on
top. In most cases it is not true. Even though we hear the horror stories on the TV,
most builders are experienced hardworking people and all they want is a decent wage
to live on. Probably they know deep down that construction only will not make them
rich, but they can still maintain a good lifestyle.

The quotes

Most people will advise you to get 3 quotes. I think this is great advice. It helps you to have a clear picture of what is really involved; you can also catch out builders with
unacceptably high prices. Probably all 3 quotes will be different, which does not mean that one is a rip off and the cheapest is the fair. Most people will fall into the trap of believing that the lowest price must be the true price and all the higher quotes are cowboys. Behind every builder there are employees or subcontractors. They may
receive different wages. The builder might have different solution to different
situations. These can greatly affect the price. To help the builders give you a quote
that is as accurate as possible, you will have to write a VERY VERY specific list of
what you want so all builders you have contacted are pricing exactly the same thing
so you can actually compare the quotes on a like for like basis.

Too high quotes can be the result of a builder not really wanting the job. He submits a high price hoping that you will chose someone else or in case you choose them he will make a killing. In this case the builder doesn’t really care about whether you choose them or not as they are probably busy anyway.

Low prices can have different reasons. Low prices will usually be quoted by someone
who is inexperienced in pricing, or eager to get the job. The inexperienced one can be
a good tradesman, who just set up on his own.

The fair price
As long as you know exactly what you want you have nothing to worry about. Make a
list. Try to make it as specific as you possibly can. Try to think and include anything
that needs doing. Even the last little detail. By explaining your needs and by giving a
copy of your list to all 3 builders they can now go home and price the same job. Once
you receive the quotes you can be rest assured that the price includes everything you
wanted so you can choose your builder. You might find that you like one particular
builder better than the rest and you would be happy to work with him even if his price is slightly higher then the others. But of course you will try to negotiate. However I don’t believe it is a good strategy to use the lower quote as a negotiation tool to cut back the more expensive price.

When you say to the builder:
“I have got a cheaper quote, will you lower you price?”
The builder might hear:
“You are a rip off merchant I know how much it should cost; you don’t know what you are doing.”

It is definitely not a good way to start a relationship. You could try something like
this:
I received all the quotes now, and I am a bit worried. I would like to work with you,
but my wife/husband will only allow us to spend £X. Would you consider doing it for
that much?
It is friendly, and you leave a choice for the builder. Also a lot of people assume that the builder must have put at least £500 on top of the “real” price, so you can easily negotiate. In some occasions this is not true. A builder, who has been doing nothing for some days/weeks now, will be happy to price it on the basis, that as long as he can keep his lads going, and pay for materials, it is ok. As you can see there is no margin on that, it simply pays for the workers to carry on. I would also like to warn you of a very dishonest practice some builders are using successfully. The low quote tactic. Their price will be low simply to get the client to choose them. The quote does not actually contain everything, so they will bill the clients massively for extras that should have been included in the quote anyway. You can easily protect yourself against this happening:
• By using a highly recommended builder
• By checking their references
• By giving them a very specific work list to price upon
• By signing an contract especially on bigger projects

Foreign builders
Using foreign builders can have benefits and disadvantages. It is up to you to weigh
up pros and cons.

Pros:
In most cases they are hard working
They appreciate the work hence they will try to prove themselves
They have lower financial expectation so they can be cheaper.
They also have lower personal overheads.
They respect clients and property in most cases.

Cons:
Inexperienced in some cases (Eastern Europe has different building practises and even different building materials and hand tools. It takes time, practicing, effort to learn new skills)
Need to be managed. (In some cases they will not be familiar with the British building
regulation and standards)
Language barriers (this does not need to be explained we all know how difficult it is
to communicate affectively with someone who does not speak English)

There are other considerations for you to think about as well. As the construction
industry declines more and more eastern European tradesmen will leave the UK.
Already 1000s of Poles have left the country due to lack of work, low value of the
sterling. 90% of the Eastern Europeans came into the UK from 2004 to spend a couple
of years here, save up as much money as they can, with low overheads, then go back
home to their families. Now that job is hard to find, and the pound is low they have
less and less reason to stay. What it means is that if you have a foreign crew doing a
job for you, if you need to call them back there is no guarantee that they will still be in the UK. If however they have a British (or he can even be a foreign national with
long term plans in the UK) employing them, then he will of course take care of the
problem.

Managing
Hopefully by now you have chosen your builder, he is capable, you have agreed on as
much detail as possible, you have accepted the quote and the job is ready to start.
This is where I believe the real challenge will start, and where you will really find out
if your chosen builder was in fact the right choice. If you have a long lasting good
relationship with your builder then keeping daily contact is not that important,
however if this is the 1st job the builder is doing for you then I would suggest to call
him once a day on smaller projects, with no real reason, just to find out if all is ok.
Probably the builder will only call you if there is an important issue to address, so
don’t expect him to call you all the time. From your point of you the less he calls you
the more confident he is. But I would still call him regularly. Try to be friendly and
understanding as things not always go as planned, but of course if there is a certain
problem that needs to be addressed then you will have to be firm and quick with your
decision. First to show them, that you are a serious professional, and second to allow
them to carry on with the work as soon as possible. Because the last thing you want is delay. If you treat the builder with respect then he will be delighted to work for you
again as long as he receives payment as agreed (more on this later).

Consider having a contract drawn up.
Actually it is a good idea to protect both parties but you may not need it for smaller
project especially if you know the builder very well. On bigger projects such as new
kitchen, full refurbishment, extension and so on, it is advisable to have a written
agreement, which includes all the tasks, the price, who the builder and the client is,
who is responsible for what, can they use your water and toilet, how all the rubble will be taken away and when. Get the builder to sign the contract with you to avoid future misunderstanding if things go sour. You can visit this website for good contracts:
www.ribabookshops.com
Are they insured?
A good responsible builder will be insured. This will include public liability insurance
and employer’s liability insurance if the builder has employees. In today’s world
where everybody is suing everybody for no real reason it is necessary that your
builder is covered in case someone gets injured on site during the work.

The payment
This is a very sensitive issue of course for everyone. The builder needs his payment to pay suppliers overheads, employees etc. and of course you will want a job nicely
finished. On one hand I would not suggest giving any money to builders up front, on
the other hand I can see this happening more often as the credit problems bite. As
investors can get into cash flow problems so can builders. Some builder I know (and
they are good builders) will not start any job without upfront payment. Their
reasoning is simple and in some way understandable. Basically they are not prepared
to put any money into someone else’s property, simply because they see this as a risk,as they don’t know what can happen with the client. Of course every time they takeupfront payment it is properly documented. You should always protect yourself by taking copies of at least 2 different IDs if you decide to give them cash upfront,
alternatively you can pay for materials yourself avoiding parting with your cash.
Let’s assume that all is working out well, they are working as requested and you pay
as agreed which can be a one off payment on small projects, or on bigger jobs stage
payments will be more desirable by the builder, as he doesn’t want to be out of pocket for a longer period. Before you make your final payment you will have to receive an invoice, and everything will have to be checked. You will need some time (with a paper and pen) to check that you are happy with every detail. It is a common practice to withhold a small percentage for a few weeks, just to see if any problem will show up as the property is being occupied again. This is advisable if you don’t have 100% trust in your builder, as you will want them back to rectify the problems, if there is any.

Good builders are probably motivated by 2 things, and 2 things only:
• Appreciation for what they have done, and

• Prompt payment.

Firm approach, respect, fast decisions, prompt payment and clear communication will almost guarantee that you will have a hassle free project with a builder who will betalking about you as a great client to work for.

Dealing with problems

Problems are not as bad as you might think. Problems are actually opportunities to
show how good you and the builder can communicate. You will have to explain to
them if there is anything you do not like, or if you have changed your mind on
something. The sooner you talk about it the better as all these new changes will affect some part of the work. That is why again I have to emphasize how important it is to know what you want, and to maintain clear communication at all times.

If you are not happy with the quality of the workmanship, tell them that you were
looking for a better/different product. Be polite but also firm. You are the paying
costumer so it is imperative that you are happy with the job. The builder must respect your wishes. If he is any good he will notice the mistakes himself anyway and make sure that they are repaired or redone before you even notice them. Hopefully if you choose you builder carefully you won’t have problems with the quality. However you never now, just keep your eyes open, and tell them if you do not like something. If they are really professional they will have to be open to negative feedbacks as well as positive.

The major difference between working for a “normal” client, and BTL investor
The majority of my work was done for people who were refurbishing their own
residential property. Over the last 2 years however I have had the opportunity to work
with a few BTL investors, along with refurbishing some of my own BTL properties.
There are huge differences between the two from the builder’s point of view.

The normal client:
• Will often be indecisive about what he/she wants
• Will try and do the work to satisfy their own personal taste
• Will often choose fixtures and fittings from different suppliers, he/she will
often order from the internet, and these can add delay to the work.
• Will often change their mind about what they want, which can result in
unnecessary extras being charged by the builder as some work will have to be
done more than once
• Will in most cases live in the property, which means that rooms will have to
be emptied before it can be worked on, this again add time to the job.
For all the reasons above, working for a normal residential costumer can last longer
being more rewarding financially, but with greater hassle for the builder.

The BTL investor:
• Will know exactly what he/she wants
• Will try to satisfy everyone’s taste by using simple fixtures, and plain natural
colours.

• Will try to keep the timeframe and costs down, by making quick decisions

• In most cases properties will be unoccupied for a short period that is ideal for any refurbishment work.
• Will try to source materials from suppliers that are tried and tested for speed and price.
• Will understand that the property has to impress people with often low income, and therefore a clean, nice, inviting look is always more important than futuristic colour schemes and devices sourced from expensive suppliers.
• Will understand where he/she can make significant savings when refurbishing BTL properties.

For all the reasons above, working for a BTL investor will be less rewarding financially, but will usually be hassle free, a quick in and out job. The easiest way to find a trustworthy builder in and around London with a big smile.

If you have a project in London and you are not sure who you will use, or even if you have your own builder you might want to consider giving me a call about it.
We VLV Construction Ltd. are happy to undertake any refurbishment work for you in
the London and surrounding areas.

What you will get:

• Honest, professional approach
• Quick & quality work
• Fair/competitive price
• Transparent transactions
• 6 months guarantee
• Personal recommendations from other forum members (Raj Chaggar-two

bedroom flat refurb, Trushant Bodani-3 bedroom house refurb)I am in the process of having another web site designed - that will focus on therefurbishment side of our business - along with my existing www.vlvcarpentry.co.uk site. The latter is much more focused on carpentry, however if you look at the pictures you will have a great feel about my work. You will also see numerous testimonials on the site that are of course 100% genuine, and I will be delighted to pass over the contact details of previous costumers.

If you need our services or want more information or just an informal chat about your
project please either

Email me at valvarga@gmail.com or
Call on 07886642573

I hope you have found this guide useful, and I hope it will assist you in 2009 and
beyond.

I wish you all the best in you business and personal life.
Kind Regards
Valentin Varga