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What Consultants are needed
By Antonis Loizou, FRICS
Antonis Loizou & Associates Ltd Chartered Surveyors
Property Valuers -
Project Managers
2
March 2008
This article is written with the home/building owners in
mind and we will attempt to advice them on the necessary
consultants that one should use, in the building
process. We are aware that many foreign people in
particular try to cut-corners in order to save costs,
but at the end of the day a substantial percentage ends
up having serious problems (some of which are surfaced
in our
Q+A column), which, at
the end, cost considerably more than the originally
envisaged savings, whereas others are met with problems
which cannot be resolved.
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Buying the plot:
Get a valuation done by a registered valuer who will
inform you in addition to the property’s market value,
the available building density, any zoning
restrictions, possible affects on proposed
Governmental and other plans, which affect the
property etc. For a plot of approximately £200.000 a
reasonable fee is around £200+V.A.T.
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The Architect:
Once you buy the plot, you must appoint an architect
registered as such with the Technical Chamber (ETEK).
Do not cut-corners on this major consultant and do not
appoint the neighbor’s son, who “has a talent” in
architecture. Ordinary architect’s fee is 4%-5% on the
total building cost, but you can negotiate a flat fee.
Make sure that whatever amount you agree, you split
30% design (split 20% on completion of the agreed
design, 5% on issue of planning permit and 5% on issue
of building permit), 50% supervision, 10% on delivery
and 10% on securing the certificate of final approval.
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The Civil Engineer:
The consultant who will design the structural members
of the building, including any externals (retaining
walls etc). Ordinary fee 1% on the total cost or a
flat fee as before. We suggest 40% on design, 10% upon
the issue of the building permit and 50% for
supervision.
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The Electrical & Mechanical
Engineer: Average fee 3%-4% on the E/M
cost. Make sure that the cost refers to his own work
only. So if he is not involved in the pool design,
this should be excluded. Water irrigation for the
garden etc must also be considered. Alternatively
agree on a flat fee. Similarly agree on a 30% design,
60% supervision and 10% on completion and
commissioning. Make sure that you understand what this
consultant is suggesting to you because sometimes
these consultants go over board in costly fixtures.
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Quantity Surveyor:
A must in a building. He is the person who will
measure the Bill of Quantities on which the tenders
will be sought. Bear in mind that most contractors
will not quote without a B.O.Q. or if they do, their
bid might be excessive. For any claims/extras/savings
etc, he is the person to look after your side. He
should also be able to advice you on the legal matters
of a building contract, so that you are not met with
surprises of “claims” at the end. Expected cost 1% on
the total cost or a flat fee. Method of payment is 50%
on preparation of the bill, 20% on award of tenders
and the rest 30% for the issue of payment
certificates.
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Gardener: Useful
to have if you have a large garden. Avoid plant
selling firms whose priority job is to sell their
plants regardless. Use a horticulturist who must
suggest local plants/trees using limited water
quantities. Bear in mind always that trees grow and
may intrude in the neighbor’s plot.
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Project Manager:
If your investment is large, appoint a project
manager, whose job is to coordinate all the above,
suppliers and all contractors and sub-contractors you
appoint. He is “your man” looking after everything
including quality, time, delivery and constant
updating. Cost around £1.000-£2.000 p.m. depending on
the size. If a large complex he may appoint a resident
engineer at an extra cost. He is the man who will make
sure that the architect, civil engineer and others
respond on time, so that no claims will follow and the
person who will push you for timely decisions and
coordinate the others involved in the building process
(financiers, any local authorities, public services
etc).
On a total cost for an
ordinary house of around £250.000 you should anticipate
the following cost:
Architect £11.000
Civil engineer £2.500
E/M £1.500
Gardener £1.000
Quantity Surveyor £2.500
Project Manager (12 months) [£12.000 large projects]
Others (??) say £1.000
Total +- £20.000 + V.A.T. at 15% = £23.000
The above cost
represents approximately 8% on the total cost, not a
small amount, but a necessary one. So should you decide
which one you will miss out, you must compare the cost
saving with the risks involved.
www.aloizou.com.cy
www.aloizou.ro
ala-HQ@aloizou.com.cy
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