Subdivision Builders Melbourne – How and Where to Find the Right Builder for Your Project

subdivision builders in melbourne

If you’re looking to undertake a subdivision real estate development project, then you’ve probably been searching for “subdivision builders Melbourne”.

This makes sense as it’s what you are after – a builder that can do a subdivision.

Yet it may not be the best search term to be popping into Google.

Get Better Results

To get some great results from a search engine, you need to use terms like “duplex builders” or “townhouse builders” or even “dual occupancy builders”.

Don’t forget to include the geographical location either. For example: “townhouse builders + Melbourne” or “Duplex builder + northern suburbs”.

subdivision builders melbourne

Builders don’t usually refer to themselves as subdivision builders. So you’re unlikely to find gold results if you use this search term. You’ll get watered down results.

That’s why we wrote this article. At Little Fish, we believe in education and information. We like to share our knowledge.

So, we wanted to get you up to speed and heading in the right direction when looking for subdivision builders Melbourne.

Learn About the Process

In this article, we’ll touch briefly on the subdivision process.

You’ll learn how it fits into the whole development project. We’ll also share some handy hints on finding a good, experienced builder.

Next, we’ll get into how to prepare for the build tender process. This is when you put your project out to the market for builders to tender for your business.

We’ll also ensure you are armed with sufficient knowledge, so you don’t end up paying too much for your build.

A Word on Subdivision

Now let’s discuss the subdivision process. Subdividing property is when you take one large piece of land and create separate titles on it.

For example, you take one lot and turn it into two, three, four, five or even six like in the subdivision document below.

subdivision and builders

At the end of the process, you have separate lots with individual dwellings on them.

When Should You Start your Subdivision

Now, it is possible to subdivide the land as the first step. Next, you can begin construction of the homes. This is all well and good, and you might want to go in this direction.

Here at Little Fish, we prefer to run the plan of subdivision process alongside the build. This is because the end game for our clients and investors is profit.

If you subdivide first and then build, the project time extends. Every single day has a dollar value attached, so this can cost more.

When done in parallel, you end up saving money and seeing more profit upon completion.

That said, sometimes you might subdivide first if you are on a tight budget and you need to sell a lot to generate some capital to fund the build of your dwelling.

11 Tips on Finding the Right Subdivision Builders Melbourne for Your Project

Next, we’ll go into some pro tips on finding a builder for your project.

1. Budget Matters

build budget

Your overall budget is going to impact your choice of builder. For example, there’s no point commissioning a luxury builder who uses only the most premium materials if you can’t afford it.

In this game, you need to have your numbers airtight. Check them, double-check them and then recheck them for good measure.

If a builder can’t work to your budget look elsewhere.

2. Cheapest Isn’t Best

Although you are working to a budget, this doesn’t mean you should look to cut corners and save a buck. Picking the cheapest quote is a risky move.

You want to determine the market value of your project and then find the best subdivision builders Melbourne who can bring your project to life, within that budget.

3. How to Figure out the Market Value of Your Project

You can figure out the market value of your project by talking to numerous builders. This is a surefire method to determine what you need to know.

If you skip this step, it will cost you. And it won’t just cost you peanuts. We’re talking tens of thousands here.

Determine the market value of your whole project then find a builder that can make it happen.

4. Do Your Research

You need to be thorough when researching a potential builder.

You cannot afford to take a laissez-faire attitude here. This is a significant expense, and if it goes wrong, it goes wrong in a spectacular fashion.

You’ve probably heard stories of builders going bankrupt mid-build. Or you’ve seen abandoned developments around town.

Look at the builders’ work history, any client feedback or reviews, their experience. Check out their finished projects.

builder reviews

Be airtight in your research. These are all non-negotiable.

5. Ask Friends and Family

Chances are someone you know has used a builder. Either your friends, family or co-workers will have done some renovations or a build themselves. It is worth checking out recommendations but don’t go on word of mouth alone. Always do your research, as described above.

6. Tender Out Your Build

Now you can begin the tender process. By this stage, you’ll have a shortlist of builders.

They will all pitch to you for the build, giving their quotes and estimates. By now, you will begin to get a sense of the market value of your project. From there, choose two and begin negotiations. Get it down to a figure you are comfortable with and that you know will work.

7. A Word on Timelines

One last hint is that you need to make sure you take the timeline into account. Find out if your builder can commit to an end date for the project. And we don’t mean a verbal “she’ll be right mate.” Get it in writing. In a signed contract.

If they can commit to this, with a decent liquidated damages clause (more on this below) then you’re on a good run.

8. Your Construction Documentation is Critical

You need to have bulletproof documentation for your construction project. This is another non-negotiable. Here’s a useful list for your further learning, what you require is not limited to this list though, every project is going to be different:

  • Engineering plan set
  • Computations
  • Proposed plan of subdivision
  • Energy plan set
  • Working plan set
  • Civil plans set
  • Fixtures fittings and finishes specifications
  • Energy report
  • Soil test
  • Landscaping plan set

9. How to Ensure you Don’t Pay Too Much for your Build

Again, doing your research and prior due diligence in your local area is crucial to this. You need to understand what sort of properties are selling in your chosen suburb.

pay builders

This gives you an idea of the sort of properties buyers want. There’s no point designing and building something that you, and only you, loves if it won’t sell.

The aim of the game here is to maximise your returns. You don’t want to overcapitalise, or on the other hand under capitalise. It’s all about finding a balance.

You want to command a premium for your investment.

Again, don’t go for the cheapest builder. Rookie developers make this mistake all the time. They wind up with a dodgy build or even an incomplete one because the builder goes bust midway through.

10. A Word on Variations

At Little Fish, we mention this a lot, but it is worth hammering the point home. Builders love variations. This means changes to the agreed-upon plan.

They love variations because it generates more income for them. Be firm and stick to your guns.

11. Liquidated Damages Information

We mentioned this before but let’s go into some more detail. You need a liquidated damages clause in your contract (see below). If a builder doesn’t commit to this, choose another one who will.

builder liquidated damages

This means that if a project runs over the time specified in the contract, the builder pays you damages arising from this blowout. Now you see why we advised getting a timeline in a signed contract?

At Little Fish, this clause is a non-negotiable in all our builds. If your subdivision builders Melbourne can’t or won’t sign this then they should be struck off your list.

The higher the figure is in this clause, the more the builder will have an incentive to finish your project on time. They don’t want to lose money. Like everyone else, they are out to make a buck.

That said, you want to have a reasonable timeline in your contract. This should be negotiated with the builder so you have a realistic sense of how long a build will take. Don’t be unrealistic in your expectations.

Talk over coffee with your builder. You want both of you walking away happy with the deal, and a contract you’re both willing to sign and commit to.

Consider a Project Management Company

We’ve put this together so that you’re armed with knowledge. You should now be confident in selecting subdivision builders Melbourne to bring your project to life.

subdivision builders melbourne

But if you’re time poor or not confident yet, we can step in.  As leading property development consultants, we work for our clients, taking care of all the hassle, including finding the best builder at the right price.

We can project manage an entire residential subdivision project end to end. You can stay as engaged as you like via our dedicated project portal.

Or we can explain in more detail what we’ve discussed in this blog so that you can embark on your own journey.

If you’re keen on learning more about this, give us a bell on 1300 799 277. We’re always happy to have a chat. 

peter kelly

To put it mildly, Peter Kelly is enthusiastic about real estate. When he’s not looking at properties, or visiting potential sites, Peter can be found online at realestate. com. For him, it’s more than a job – it’s an obsession. Peter is a co-founder here at Little Fish Property developments.