gc86

No value in timber frame on site?

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We have our prefabricated timber frame sitting on site, but after a quick phone enquiry to our surveyor, he tells me that this adds no additional value, until it is erected. And it would be the same principle for any other materials delivered to site. 

 

Is this a common position for surveyors? 

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It could easily be moved to another site so I can understand his position. Do you need a valuation? 

 

 

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Yep - materials not installed or fixed have no value, see this regularly with surveys. 

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Hello gc86.

 

This can be frustrating to say the least.

 

If you look at it from the Surveyors point of view. The kit is on site but who knows if it is the right size and so on. Believe it or not it happens!

 

If you default on payment of your loan then the lender will try and recover and the surveyor is on the hook in terms of any extra value they attach to the unerected kit. During the recovery process (if default occurs) the kit could be exposed to the weather, the ancilliary parts.. brackets steel are easily thieved.

 

That said, if you are say constructing a large industrial steel building a payment is often made when the steel frame is delivered to site or fabricated and in the fabricators yard. To enable this sometimes requires the SE or the person who has prepared the fabrication drawings to go to the yard and measure everything up to make sure that what has been fabricated matches the fabrication drawings... and that comes at a cost.

 

On a small timber frame this is less practicable.

 

If you can, the best way as you probably already know is to push on, get the kit up with a semi watertight membrane on the roof, board up the windows if need be. Now you are at the common milestone (valuation point) of wind and watertight.

 

 

 

 

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Thanks, I do get the reasoning, although I thought it may have added something to the value, even if it was a low percentage of the expense. Just wondered if others had encountered the same. 

 

We have a contract with a main contractor which has set payment stages. They want a very high percentage of the wind and watertight stage payment paid in advance of stage completion, because of exceptional circumstances (covid) meaning they can't make progress as quick as they'd like to, and thus cant wait till stage is finished for the invoice. There is a clause of sorts for this in the contract of course, but no means of how to decide what the amount should be. A tricky situation, they have bills to pay for materials which I understand, but also I don't all materials on site, ie rest of kit, windows etc, nor has anything been constructed. 

 

Luckily we haven't drawn down as much as we needed to at the foundation stage so we can fund most of their bill, however I was under the impression that having the kit all prefab on site would have helped us out with by allowing a larger release, but seems this is not the case. Builder in the end has agreed to reduce bill down to what we can draw down, which wasn't too far away from what he required. But it could have been much worse depending on circumstances. Something others should be aware of if they have a similar turn key build contract. 

 

Another issue from the covid nightmare. Not a great time to be building a home. 

 

 

 

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If it is not fixed the contractor or supplier can just remove it if they are owed money.  Once fixed, they can't (legally).

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Hello gc86.

 

Sounds to me that you are taking a pragmatic approach, keeping the lines of communication clear, not falling out. Althought this may be the immediate concern don't forget to look after the kit on site.

 

Make sure that all the panels are stacked and supported so they don't start to twist. Keep them off the ground with plenty ventilation underneath them. Double sheet the top on battens so the air can get all round the panels... over the top too. Get all nails, brackets hangers etc inside and keep them dry. Doing this may actually help the timber season more so you'll get less shrinkage later on.. every cloud has a silver lining.

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Hi Gus

 

Yea the kit is all wrapped up in DPM type material, stacked flat and lifted off the ground with batons. The bottom is open to let the air through. So not too concerned about it sitting. Did have a fall out with builder tbh, as I felt the part payment he wanted, added to the previous stage payments, was too high for what I currently have on site. Difficult, both sides have their own viewpoint. Anyway managed to come to agreement, just got to try and get to the end of it now. 

Construction has avoided suspension in Scotland today so hopefully they can proceed to get the kit up and weather tight. 

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3 hours ago, gc86 said:

They want a very high percentage of the wind and watertight stage payment paid in advance of stage completion, because of exceptional circumstances (covid) meaning they can't make progress as quick as they'd like to, and thus cant wait till stage is finished for the invoice.

 

When you say high percentage do you mean more than the value of the frame? 

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On 14/01/2021 at 00:27, gc86 said:

Hi Gus

 

Yea the kit is all wrapped up in DPM type material, stacked flat and lifted off the ground with batons. The bottom is open to let the air through. So not too concerned about it sitting. Did have a fall out with builder tbh, as I felt the part payment he wanted, added to the previous stage payments, was too high for what I currently have on site. Difficult, both sides have their own viewpoint. Anyway managed to come to agreement, just got to try and get to the end of it now. 

Construction has avoided suspension in Scotland today so hopefully they can proceed to get the kit up and weather tight. 

 

ask for copies of the supplier invoices for whats on site and pay them. Apart from the timber frame what else is done, are you able to have a tot up ? Builder  probably has many jobs like yours not finished and needs cash so your likely to be easiest to tap. 

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All good advice above.

Assuming this is a relatively small building contractor, keep the dialog open and refrain from letters and legal threats.

We all have cash flow problems at times and its much easier to communicate properly in person or by phone.

Letters and emails are notoriously bad for being misread and causing aggravation where non is intended.

Be fair, but dont be taken for a mug. If the contractor is short of cash they will ask, but its either you or them that ends up paying to borrow so look after yourself while staying on good friendly terms.

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Cheers everyone. Should really start one of the blog pages and update the progress.. 

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That’s strange because QS on site used to check what was installed and what was on site, I assumed you got a proportion of the on-site material, this was from a large main contractor / sub contractor relationship with the usual 90 days payments

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