Page 8 - Smartline eBook - Upgrading your home
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You should also ask the builder, and even their subcontractors, for references from past clients. You and your builder need to be able to work together – if the relationship turns sour, things can get very messy.
Getting quotes and signing the contract
Avoid getting lots of ‘free quotes’ from a range of non-specialist builders – they
are usually vague and non-binding. It’s quite normal to pay for a quote and this will typically ensure it is detailed and accurate. The quote should include a detailed list of items that have been properly costed by suppliers and subcontractors, and minimal provisional sums or estimates.
Most building works require a contract between yourself and builder. The relevant government building authority in your state or territory will have a comprehensive guide on how to enter a building contract and what obligations apply to you and your builder. Failing to double-check that everything meets requirements could leave you without a legal leg to stand on should a dispute arise.4
Beware of overcapitalising or undercapitalising
Overcapitalising happens when the cost of a renovation outweighs the value it adds to the original property, making it a poor investment. Undercapitalising, on the other hand, is false economy; if you don’t spend enough, you risk devaluing your property
Upgrading your home 4. www – Contracts

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