By Johannes Hesekiel
Building projects often start with exciting visions of what life will be like once the project or renovation is completed.
Unfortunately, for many starry-eyed property investors and homeowners, the dream very quickly descends into a nightmare as costs escalate to much higher levels than indicated in the original quotation and completion times extend well beyond initial expectations.
This is also a nightmare that you cannot escape from quickly. Once committed to a building project, it is very hard to leave it.
Even once the building project has been completed, there is still scope for the nightmare to continue. Poor workmanship does not always materialise immediately. It can take weeks, months or even years to become apparent.
Short-term insurers are often the first to step in and assist property owners when issues arise. After inspecting the damage, however, a claim may be declined if it’s found to be the result of poor workmanship.
This can come as a shock to the property owner, as few of us are equipped with the skills required to identify the shortcuts that the building contractor has taken.
We rely on the building contractor’s skills, experience, and integrity with the municipal approval of the plans as a backstop to ensure that all is as it should be.
So, what is there that a wise property owner can do to protect themselves from such an ordeal? Here are a few suggestions.
The cheapest quote is not always the best
While cost is always a consideration, choosing the lowest bid without understanding what is included (or excluded) can lead to serious trouble.
Be wary of quotes that seem too good to be true – they often are. Reputable contractors will provide detailed estimates with line-item breakdowns. Always compare ‘apples with apples’ when reviewing quotations.
Thoroughly vet the contractor
Do your homework before signing any contract. Request references and follow up on them. Visit past projects, if possible, and ask previous clients about their experience. Check whether the contractor is registered with a recognised building council or professional body.
Insist on a detailed written contract
Avoid handshake agreements. Your contract should clearly outline the scope of work, project timelines, payment schedules, materials to be used, and penalty clauses for delays or substandard work. The more specific the contract is, the better protected you are.
Supervise the project or appoint someone supervise the work on your behalf
If you do not have the time or technical know-how to supervise the project, consider hiring a professional project manager or ‘clerk of work’. This person can oversee daily progress, verify that materials used are up to specification, and ensure that building codes are being adhered to.
Insist on regular quality inspections
Arrange for regular site inspections by a qualified civil engineer or building inspector who is independent of the contractor. These inspections can catch problems early, before they become expensive or irreversible.
Keep a paper trail
Document every communication, variation, and incident during the construction process. Copies of emails signed change orders and photographs of progress are essential if disputes arise.
Beware of substandard materials
Some contractors use inferior materials to cut costs and increase their profit margins. Request proof of purchase for key materials and verify with suppliers when in doubt. You are entitled to know exactly what is being used on your property.
Ask about guarantees and warranties
Reputable builders offer warranties on workmanship and materials. Know what is covered, for how long it is covered and what process to follow in case of defects. Keep all warranty documentation in a safe place.
Consult your insurer early
Engage with your short-term insurer before the building commences so that they can advise you on which risks are covered and what documentation will be required should you file a claim later. Your insurer might also offer pre-construction inspection services.
Do not assume that municipal approval confirms quality
While municipal plan approval is necessary, it does not guarantee sound workmanship. Municipal inspections focus on regulatory compliance rather than construction quality and are thus usually limited in scope. You still need independent oversight.
In conclusion, building or renovating a property can be a rewarding experience, but only if approached with due diligence and care. Taking proactive steps before and during the project can protect you from significant financial losses and years of regret. You should treat your building project as if it is a business investment. Attention to detail upfront pays dividends later.
*Johannes Hesekiel is a General Manager: Sales and Underwriting, Old Mutual Short-Term Insurance, Old Mutual Namibia
