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The bane of a builder’s life can be quoting for people who are just tyre-kicking, dreaming about projects for which they never plan in any serious way. Too often the builder squanders time getting to know the clients, meeting them after hours, befriending the family dog and spending endless nights getting the quote correct, with no remunerative outcome. The potential client, it seems, has made only casual speculations without ever being in a position to secure the required funds.
One solution proposed by Harry Pontikis, Manager of Master Builders Financial Services (MBFS), is to ask the clients to consider using the services of MBFS to obtain a real approval from a broking firm that specialises in construction and developments. So, while the builder is getting to know what the client would like to do, MBFS would be working with them to advise them on what they can actually afford to build.
Many clients will tell their builder they have a pre-approval from their bank, while the bank has done no assessment and makes the approval contingent on a signed building contract. In this instance, MBFS would be able to get an actual, formal approval on the tender document rather than waiting for the building contract to be signed. There are many pitfalls and traps with construction finance of which few brokers are aware, and the lending policies of banks change frequently enough to make it potentially risky for clients to approach banks directly.
Builders should avoid quoting on jobs for which the client isn’t certain they can obtain the required funds; it’s a huge waste of time having to quote on jobs with little or no chance of them ever happening.
Contact Harry Pontikis at Chocolate Money on 1300 137 539 or email him directly on
