By Johannes Hesekiel

Copyright namibian

Building projects offten start with a vision of what life will be like once the project or renovation is completed.

Unfortunately, for many property investors and homeowners, the dream becomes a nightmare as costs are higher than indicated on the original quotation and completion times may extend beyond initial expectations.

When you are committed to a project, it is hard to leave it.

Even after completion, some nightmares may persist. Poor workmanship does not always materialise immediately. It can take time to show.

Short-term insurers are often the first to assist property owners when issues arise.

After damage inspection, however, a claim may be declined if found to be the result of poor workmanship.

This can be a shock to the property owner as many do not see 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.

What can a wise property owner do to protect themselves from such an ordeal?

– Cheap quotes aren’t always idealWhile 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.

– Vet the contractorDo your homework before signing any contract. Request references and follow up on them. Visit past projects, if possible, and ask previous clients about their experiences.

Check whether the contractor is registered with a recognised building council or professional body.

– Insist on a detailed written contractAvoid handshake agreements. Your contract should clearly outline the scope of work, project timelines, payment schedules, materials, and penalty clauses for delays or substandard work. The more specific the contract is, the better protected you are.

– Supervise the projectIf 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 inspectionsArrange 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 trailDocument 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 materialsSome 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 warrantiesReputable 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 earlyBefore the building commences, engage with your short-term insurer to 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 qualityWhile 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 ensures protection against significant financial losses and years of regret.

You should treat your building project as a business investment. Attention to detail upfront pays dividends later.

Johannes Hesekiel is a general manager of sales and underwriting at Old Mutual Short-Term Insurance.